—— Bengang Steel Plates Co. Ltd.—— FINANCIAL STATEMENTS
(January 1 2025 – June 30 2025)
August 2025Bengang Steel Plates Co. Ltd.INTERIM FINANCIAL STATEMENTS
2025Bengang Steel Plates Co. Ltd.
FINANCIAL STATEMENTS
(From 1 January 2025 to 30 June 2025)
INDEX PAGES
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL 1-4
POSITION AND STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOMEAND STATEMENT OF COMPREHENSIVE 5-6
INCOME
CONSOLIDATED STATEMENT OF CASH FLOWSAND 7-8
STATEMENT OF CASH FLOWS
CONSOLIDATED STATEMENT OF CHANGES IN 9-12
EQUITYAND STATEMENT OF CHANGES IN EQUITY
NOTES TO THE FINANCIAL STATEMENTS 1-163BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2025
(Expressed in Renminbi unless otherwise indicated)
Assets Notes 5 Jun 30 2025 Dec 31 2024
Current assets
Cash at bank and on hand (1) 2119971644.73 2453888470.48
Settlement provisions
Capital lent
Financial assets held for trading
Derivative financial assets
Notes receivable (2) 420783021.23 607279481.42
Accounts receivable (3) 933243164.81 501484081.73
Accounts receivable financing (4) 5552656.65 64399942.70
Prepayments (5) 821032065.29 391823135.87
Premium receivable
Reinsurance accounts receivable
Receivable deposit for reinsurance contract
Other receivables (6) 16354769.47 149015138.26
Redemptory financial assets for sale
Inventories (7) 7049937599.37 7333084694.27
Including: data assets
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets (8) 360129648.55 437081260.66
Total current assets 11727004570.10 11938056205.39
Non-current assets
Loan and advances issued
Debt Investments
Other debt investments
Long-term receivables
Long-term equity investments (9) 45413221.72 45413221.72
Other equity instrument investments (10) 933426254.63 933426254.63
Other non-current financial assets
Investment property
Fixed assets (11) 26050690523.41 26426320453.57
Construction in progress (12) 4537520033.00 3934442501.50
Productive biological assets
Oil and gas assets
Right-of-use assets (13) 1646483647.30 1685925710.14
Intangible assets (14) 389207571.30 394780068.68
Including: data assets
Development expenditure
Including: data assets
Goodwill
Long-term deferred expenses
Deferred tax assets (15) 365101631.17 371234449.79
Other non-current assets (16) 63242806.75 86297275.16
Total non-current assets 34031085689.28 33877839935.19
Total assets 45758090259.38 45815896140.58
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 1BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued)
As at 30 June 2025
(Expressed in Renminbi unless otherwise indicated)
Liabilities and equities Notes 5 Jun 30 2025 Dec 31 2024
Current Liabilities
Short-term loans (18) 771932029.09 371055490.50
Loan from central bank
Loan from other banks
Financial liability held for trading
Derivative financial liabilities
Notes payable (19) 13242519960.72 12982703669.86
Accounts payable (20) 2946268814.64 2761759439.36
Advance from customers (21) 60550.47 59327.21
Contract liabilities (22) 2720427152.25 2908598425.73
Financial assets sold for repurchase
Deposits from customers and interbank
Receipt from vicariously traded securities
Receipt from vicariously underwriting securities
Employee benefits payable (23) 9580745.39 1773068.35
Current tax liabilities (24) 41995727.81 54070097.83
Other payables (25) 2712614915.79 2354694200.01
Handling charges and commission payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year (26) 6235647286.25 1030502916.66
Other current liabilities (27) 302028180.11 328981058.74
Total current liabilities 28983075362.52 22794197694.25
Non-current liabilities
Provision for insurance contract
Long-term loans (28) 3544759075.31 2891941462.40
Bonds payable (29) 5569899459.53
Including: Preferred stock
Perpetual bond
Lease liabilities (30) 1615827405.83 1633911586.51
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income (31) 189505772.22 173919087.47
Deferred tax liabilities (15) 246977220.84 252893530.26
Other non-current liabilities
Total non-current liabilities 5597069474.20 10522565126.17
Total liabilities 34580144836.72 33316762820.42
Shareholders' equity:
Share capital (32) 4108232205.00 4108228157.00
Other equity instruments (33) 947846937.93 947850195.03
Including: Preferred stock
Perpetual bond
Capital reserves (34) 13225644002.21 13225632166.95
Less: treasury shares
Other comprehensive income (35) -93407196.62 -93407196.62
Special reserves (36) 16177702.44 809649.65
Surplus reserves (37) 1195116522.37 1195116522.37
General risk reserve
Undistributed profits (38) -8896289413.80 -7497011632.90
Total equity attributable to equity holders of the parent company 10503320759.53 11887217861.48
Non-controlling interests 674624663.13 611915458.68
Total shareholder's equity 11177945422.66 12499133320.16
Total of liabilities and owners’ equity 45758090259.38 45815896140.58
The notes to the financial statements attached form part of these financial statements.Legal Representative： Chief Financial Officer: Chief Accountant:
Financial Statements Page 2BENGANG STEEL PLATES CO. LTD.STATEMENT OF FINANCIAL POSITION
As at 30 June 2025
(Expressed in Renminbi unless otherwise indicated)
Assets Notes 15 Jun 30 2025 Dec 31 2024
Current assets
Cash at bank and on hand 1999026895.77 1928597252.93
Financial assets held for trading
Derivative financial assets
Notes receivable 761406501.25 879167997.23
Accounts receivable (1) 1089580929.62 899413301.62
Accounts receivable financing 25550265.17 67033501.52
Prepayments 1384148744.17 552668067.77
Other receivables (2) 77724911.85 399809663.60
Inventories 6218522624.32 6510049399.94
Including: data assets
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 322005140.86 401232007.64
Total current assets 11877966013.01 11637971192.25
Non-current assets
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments (3) 2467956681.15 2437356681.15
Other equity instrument investments 933426254.63 933426254.63
Other non-current financial assets
Investment property
Fixed assets 25007974186.47 25361023150.98
Construction in progress 4370303939.29 3813480844.57
Productive biological assets
Oil and gas assets
Right-of-use assets 1646483647.30 1685925710.14
Intangible assets 203017353.08 206105870.50
Including: data assets
Development expenditure
Including: data assets
Goodwill
Long-term deferred expenses
Deferred tax assets 364151295.05 370213799.88
Other non-current assets 62502489.27 85556957.68
Total non-current assets 35055815846.24 34893089269.53
Total assets 46933781859.25 46531060461.78
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 3BENGANG STEEL PLATES CO. LTD.STATEMENT OF FINANCIAL POSITION (Continued)
As at 30 June 2025
(Expressed in Renminbi unless otherwise indicated)
Liabilities and shareholders' equities Notes 15 Jun 30 2025 Dec 31 2024
Current liabilities
Short-term loans 731668054.66 371055490.50
Financial liability held for trading
Derivative financial liabilities
Notes payable 12073496699.72 11915812506.01
Accounts payable 3349716181.85 2881087998.48
Prepayments
Contract liabilities 6734994549.72 6637545634.05
Employee benefits payable 7691011.20 354432.32
Current tax liabilities 24999888.62 28685832.43
Other payables 2778965167.50 2206387975.74
Liabilities held for sale
Non-current liabilities due within one year 6235647286.25 1030502916.66
Other current liabilities 41700590.54 61868166.75
Total current liabilities 31978879430.06 25133300952.94
Non-current liabilities
Long term loans 3544759075.31 2891941462.40
Bonds payable 5569899459.53
Including: Preferred stock
Perpetual bond
Lease liabilities 1615827405.83 1633911586.51
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income 179963278.22 154871615.47
Deferred tax liabilities 246977220.84 252893530.26
Other non-current liabilities
Total non-current liabilities 5587526980.20 10503517654.17
Total liabilities 37566406410.26 35636818607.11
Shareholder’s equity:
Share capital 4108232205.00 4108228157.00
Other equity instruments 947846937.93 947850195.03
Including: Preferred stock
Perpetual bond
Capital reserves 12825154189.28 12825142354.02
Less: Treasury shares
Other comprehensive income -93407196.62 -93407196.62
Special reserves 13273126.64 9276.81
Surplus reserves 1195116522.37 1195116522.37
Undistributed Profits -9628840335.61 -8088697453.94
Total shareholder's equity 9367375448.99 10894241854.67
Total liabilities and shareholder’s equity 46933781859.25 46531060461.78
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 4BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period Jan.-Jun. 2025
(Expressed in Renminbi unless otherwise indicated)
Items Notes 5 Current period Previous period
1. Total operating income 24697800421.99 28366851887.99
Including: Operating income (39) 24697800421.99 28366851887.99
Interest income
Premium earned
Income from handling charges and commission
2. Total operating cost 26136426924.70 29878230529.33
Including: Operating cost (39) 25441217248.92 29168175176.89
Interest expense
Expenditure for handling charges and commission
Surrender value
Net expenditure for compensation
Net provision for insurance contract appropriated
Bonus payment for policy
Reinsurance premium
Tax and surcharges (40) 108022323.47 106481289.07
Selling and distribution expenses (41) 61464166.53 71977059.91
General and administrative expenses (42) 285764896.43 359904698.96
Research and development expenses (43) 31617334.27 36966260.63
Financial expenses (44) 208340955.08 134726043.87
Including: Interest expense 207308249.73 192939391.68
Interest income 17521734.29 20070259.17
Add: Other income (45) 109012246.69 90719972.37
Income on investment（“-” for loss） (46) -17631847.31 -31605308.28
Including: Income from associates and joint ventures
Income from derecognition of financial assets measured at amortized cost -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） (47) -9308109.96 16164459.46
Asset impairment loss （“-” for loss） (48) 36671170.60 -14313228.28
Assets disposal gains（“-” for loss） (49) 3008.85 10002955.91
3. Operational profit（“-” for loss） -1319880033.84 -1440409790.16
Add: Non-operating income (50) 9723769.21 8981750.82
Less: Non-operating expenses (51) 36523366.11 27657844.36
4. Total profit (“-” for loss) -1346679630.74 -1459085883.70
Less: Income tax expenses (52) 19976028.30 37458939.66
5. Net profit（“-” for loss） -1366655659.04 -1496544823.36
1.Classification by continuing operating
1.Net profit from continuing operation（“-” for loss） -1366655659.04 -1496544823.36
2.Net profit from discontinued operation（“-” for loss）
2.Classification by ownership
1. Net profit attributable to the owners of parent company （“-” for loss） -1399277780.90 -1541206007.44
2. Net profit attributable to non-controlling shareholders （“-” for loss） 32622121.86 44661184.08
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 investments in other equity instruments
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 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) Others
Other comprehensive income attributable to non-controlling shareholders’ equity after tax
7. Total comprehensive income -1366655659.04 -1496544823.36
Total comprehensive income attributable to the owner of the parent company -1399277780.90 -1541206007.44
Total comprehensive income attributable to non-controlling shareholders 32622121.86 44661184.08
8. Earnings per share
1）Basic earnings per share -0.341 -0.375
2）Diluted earnings per share -0.341 -0.375
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 5BENGANG STEEL PLATES CO. LTD.STATEMENT OF COMPREHENSIVE INCOME
For the period Jan.-Jun. 2025
(Expressed in Renminbi unless otherwise indicated)
Items Notes 15 Current period Previous period
1. Total operating income (4) 24843114408.22 28760149571.95
Less: Operating cost (4) 25744208800.42 29834240304.59
Tax and surcharges 77033502.59 78312309.36
Selling and distribution expenses 93709728.93 72861508.21
General and administrative expenses 270944864.54 340794236.88
Research and development expenses 31617334.27 36966260.63
Financial expenses 209002624.36 151347791.22
Including: Interest expense 207308249.73 192939391.68
Interest income 15302608.67 16562599.74
Add: Other income 68822256.72 58511958.86
Income on investment（“-” for loss） (5) -17359947.52 -31605308.28
Including: Income from associates and joint ventures
Income from derecognition of financial assets
-332016.58
measured at amortized cost
Net exposure hedge income（“-” for loss）
Gains from change of fair value （“-” for loss）
Credit impairment loss（“-” for loss） -20985096.52 13580897.44
Assets impairment loss（“-” for loss） 36671170.60 -14313228.28
Assets disposal gains（“-” for loss） 3008.85 10000000.00
2. Operational profit（“-” for loss） -1516251054.76 -1718198519.20
Add: Non-operating income 9650019.10 8866515.98
Less: Non-operating expenses 33395650.60 27207319.92
3. Total profit (“-” for loss) -1539996686.26 -1736539323.14
Less: Income tax expenses 146195.41 -11902943.63
4. Net profit（“-” for loss） -1540142881.67 -1724636379.51
1.Net profit from continuing operation (“-” for loss) -1540142881.67 -1724636379.51
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 investments in other equity instruments
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 -1540142881.67 -1724636379.51
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:
Financial Statements Page 6BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF CASH FLOWS
For the period Jan.-Jun. 2025
(Expressed in Renminbi unless otherwise indicated)
Items Notes 5 Current period Previous period
1.Cash flow from operating activities
Cash received from sale of goods or rendering of services 26352011964.12 29554576980.10
Net increase of customers' deposit and interbank deposit
Net increase of loan from central bank
Net increase of loans from other financial institutions
Cash received for premium of original insurance contract
Net cash received for reinsurance business
Net increase of deposit and investment of the insured
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 77037466.40
Other cash received relating to operating activities (53) 122173179.14 79435504.79
Subtotal of cash inflows from operating activities 26474185143.26 29711049951.29
Cash paid for goods and services 24803326040.01 27157976303.18
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 increase in capital lent
Cash for payment of interest handling charge and commission
Cash for payment of policy bonus
Cash paid to and on behalf of employees 942556803.50 1039547406.66
Cash paid for all types of taxes 197929978.91 259409968.23
Other cash paid relating to operating activities (53) 158742556.80 173300582.82
Subtotal of cash outflows from operating activities 26102555379.22 28630234260.89
Net cash flows from operating activities 371629764.04 1080815690.40
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 long-term 87181100.00 4854.37
assets
Net cash received from disposal of subsidiary and other operating units
Other cash paid relating to investing activities
Subtotal of cash inflows from investing activities 87181100.00 4854.37
Cash paid for acquisition of fixed assets intangible assets and other long-term assets 976150324.56 508785779.41
Cash paid for acquisition of investments 60000000.00
Net increase of mortgage loan
Net cash received from subsidiary and other operating unit
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities 1036150324.56 508785779.41
Net cash flows from investing activities -948969224.56 -508780925.04
3. Cash flows from financing activities
Proceeds from investment 29400000.00
Including: Proceeds from investment of non-controlling shareholders of subsidiary 29400000.00
Proceeds from borrowings 1251997823.71 1095000000.00
Other proceeds relating to financing activities (53) 1815330484.81 1841743458.53
Subtotal of cash inflows from financing activities 3096728308.52 2936743458.53
Cash repayments of borrowings 703625752.00 1657310516.00
Cash payments for distribution of dividends profit or interest expenses 337785953.76 213951632.57
Including: Cash paid to non-controlling shareholders as dividend and profit by 51908524.27
subsidiaries
Other cash payments relating to financing activities (53) 1961851891.13 1677434508.77
Subtotal of cash outflows from financing activities 3003263596.89 3548696657.34
Net cash flows from financing activities 93464711.63 -611953198.81
4. Effect of foreign exchange rate changes on cash and cash equivalents 12181557.53 22878220.42
5. Net increase in cash and cash equivalents (54) -471693191.36 -17040213.03
Add: Cash and cash equivalents at the beginning of the period (54) 1590205218.91 1199685408.38
6. Cash and cash equivalents at the ending of the period (54) 1118512027.55 1182645195.35
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 7BENGANG STEEL PLATES CO. LTD.STATEMENT OF CASH FLOWS
For the period Jan.-Jun. 2025
(Expressed in Renminbi unless otherwise indicated)
Items Notes 15 Current period Previous period
1. Cash flow from operating activities
Cash received from sale of goods or rendering of services 25486623895.09 29388810509.14
Tax rebate received 73839161.75
Other cash received relating to operating activities 359517948.34 65515228.78
Subtotal of cash inflows from operating activities 25846141843.43 29528164899.67
Cash paid for goods and services 24109950616.59 27619248120.78
Cash paid to and on behalf of employees 869629604.70 957610316.32
Cash paid for all types of taxes 126265175.99 160249664.86
Other cash paid relating to operating activities 144527255.02 150081370.56
Subtotal of cash outflows from operating activities 25250372652.30 28887189472.52
Net cash flows from operating activities 595769191.13 640975427.15
2. Cash flows from investing activities
Cash received from disposal of investments
Cash received from return on investments 184898383.95 137000000.00
Net cash received from disposal of fixed assets intangible
87181100.00
assets and other long-term assets
Net cash received from disposal of subsidiary and other
operating units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 272079483.95 137000000.00
Cash paid for acquisition of fixed assets intangible assets and
972611679.66508204963.64
other long-term assets
Cash paid for acquisition of investments 90600000.00
Net cash paid for acquisition of subsidiary and other operating
unit
Other cash paid relating to investing activities
Subtotal of cash outflows paid for investing activities 1063211679.66 508204963.64
Net cash flows from investing activities -791132195.71 -371204963.64
3. Cash flows from financing activities
Proceeds from investment
Cash received from borrowings 1251997823.71 1095000000.00
Other cash received relating to financing activities 1815330484.81 1841743458.53
Subtotal of cash inflows from financing activities 3067328308.52 2936743458.53
Cash repayments of borrowings 703625752.00 1657310516.00
Cash payments for distribution of dividends profit or interest 285877429.49 213951632.57
Other cash payments relating to financing activities 1961851891.13 1677434508.77
Subtotal of cash outflows from financing activities 2951355072.62 3548696657.34
Net cash flows from financing activities 115973235.90 -611953198.81
4. Effect of foreign exchange rate changes on cash and cash
12043045.9122844423.74
equivalents
5. Net increase in cash and cash equivalents -67346722.77 -319338311.56
Add: Cash and cash equivalents at the beginning of the period 1064914001.36 1074502887.78
6. Ending balance of cash and cash equivalents 997567278.59 755164576.22
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 8BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period Jan.-Jun. 2025
(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 equity
shares bond Others 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 4048.00 -3257.10 11835.26 12626.16 29400000.00 29412626.16
shareholders
(1) Common share invested by shareholders 29400000.00 29400000.00
(2) Capital input by the holder of other equity
instruments 4048.00 -3257.10 11835.26 12626.16 12626.16
(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:
Financial Statements Page 9BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
For the period Jan.-Jun. 2025
(Expressed in Renminbi unless otherwise indicated)
Previous period
Owner's equity attributable to parent company
Items Other equity instruments Other General Non-controlling Total of owner's
Less: Treasury Undistributed
Share capital Preference Perpetual Capital reserves comprehensive Special reserves Surplus reserves risk Subtotal interest equity
Others shares profit
shares bond income reserve
1. Ending balance of last year 4108219302.00 947858134.16 13422225870.92 -50371341.88 163055.04 1195116522.37 -2414685928.92 17208525613.69 589070286.60 17797595900.29
Add: Change of accounting policies
Correction of errors for last period
Business consolidation under common control
Others
2. Beginning balance of current year 4108219302.00 947858134.16 13422225870.92 -50371341.88 163055.04 1195116522.37 -2414685928.92 17208525613.69 589070286.60 17797595900.29
3. Changes in current year (“-” for decrease) 8855.00 -7939.13 -196593703.97 -43035854.74 646594.61 -5082325703.98 -5321307752.21 22845172.08 -5298462580.13
1) Total comprehensive income -43035854.74 -5037271398.28 -5080307253.02 77153981.02 -5003153272.00
2) Capital increase and decrease by shareholders 8855.00 -7939.13 -196593703.97 -196592788.10 -196592788.10
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity 8855.00 -7939.13 25840.89 26756.76 26756.76
instruments
(3) Share-based payment attributable to owners'
equity
(4) Others -196619544.86 -196619544.86 -196619544.86
3) Profit distribution -45054305.70 -45054305.70 -54632794.65 -99687100.35
(1) Appropriation to surplus reserves
(2) Appropriation to general risk reserve
(3) Profit distribution to shareholders -45054305.70 -45054305.70 -54632794.65 -99687100.35
(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 646594.61 646594.61 323985.71 970580.32
(1) Provision of special reserves 72180947.90 72180947.90 5182353.19 77363301.09
(2) Use of special reserves 71534353.29 71534353.29 4858367.48 76392720.77
6) Others
4. Ending balance of current year 4108228157.00 947850195.03 13225632166.95 -93407196.62 809649.65 1195116522.37 -7497011632.90 11887217861.48 611915458.68 12499133320.16
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 10BENGANG STEEL PLATES CO. LTD.STATEMENT OF CHANGES IN EQUITY
For the period Jan.-Jun. 2025
(Expressed in Renminbi unless otherwise indicated)
Current period
Other equity instruments
Items Less: Other Special Undistributed Total shareholder’s
Share capital PerpetPreference Capital reserves Treasury comprehensive
ual Others reserves
Surplus reserves profits equity
shares shares income
bond
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:
Financial Statements Page 11BENGANG STEEL PLATES CO. LTD.STATEMENT OF CHANGES IN EQUITY (Continued)
For the period Jan.-Jun. 2025
(Expressed in Renminbi unless otherwise indicated)
Previous period
Other equity instruments Less:
Items Other comprehensive Special Undistributed Total shareholder’s
Share capital Preferenc Perpetual Capital reserves Treasury Surplus reserves
Others income reserves profits equity
e shares bond shares
1. Ending balance of last year 4108219302.00 947858134.16 12852074188.80 -50371341.88 3681.16 1195116522.37 -2900010737.27 16152889749.34
Add: Change of accounting policies
Correction of errors for last period
Others
2. Beginning balance of current year 4108219302.00 947858134.16 12852074188.80 -50371341.88 3681.16 1195116522.37 -2900010737.27 16152889749.34
3. Changes in current year (“-” for decrease) 8855.00 -7939.13 -26931834.78 -43035854.74 5595.65 -5188686716.67 -5258647894.67
1) Total comprehensive income -43035854.74 -5188686716.67 -5231722571.41
2) Capital increase and decrease by shareholders 8855.00 -7939.13 -26931834.78 -26930918.91
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity instruments 8855.00 -7939.13 25840.89 26756.76
(3) Share-based payment attributable to shareholders' equity
(4) Others -26957675.67 -26957675.67
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 5595.65 5595.65
(1) Provision of special reserves 57316980.35 57316980.35
(2) Use of special reserves 57311384.70 57311384.70
6) Others
4. Ending balance of current year 4108228157.00 947850195.03 12825142354.02 -93407196.62 9276.81 1195116522.37 -8088697453.94 10894241854.67
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 12Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Bengang Steel Plates Co. Ltd.Notes to the financial statements
For the period from Jan. to Jun. 2025
(Expressed in Renminbi unless otherwise indicated)
1. Basic Information of the Company
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.According to the approval document “Zheng-Jian-Gong-Si-Zi [2006] No. 126” by China
Securities Regulatory Commission on 30 June 2006 the Company was approved to place 2
billion Renminbi common shares particularly to Bengang Group and the proceeds would be
used to purchase the related assets of the 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 undertaking the purchase offer. The
liability was caused by subscribing of the 2 billion new shares and the total shareholding was
Notes to the financial statements Page 1Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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 Anshan Iron and Steel Group Co. Ltd. (hereinafter referred to as Ansteel Group) 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 Anshan Iron and Steel Group for free. After the completion
of this free transfer Ansteel Group became the controlling shareholder of Bengang Group
and Ansteel Group indirectly hold 81.07% of the total share capital of Bengang Steel Plates.As at 30 June 2025 the capital shares were totaled to 4108221073.00 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: Huang Zuowei.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 2025.Notes to the financial statements Page 2Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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 (11) Inventory (14) Fixed assets
(17) Intangible assets (23) 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 consolidated and parent company’s
financial position as of June 30 2025 and the consolidated and parent company’s operation
results and cash flows from January to June 2025 in accordance with China Accounting
Standards for Business Enterprises promulgated by the Ministry of Finance.
(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
Notes to the financial statements Page 3Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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
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.The intermediary costs and relevant fees for the business combination paid by the acquirer
including the expenses for audit assessment and legal services shall be recorded into the
profits and losses at the current period. The transaction expenses for the issuance of equity
securities for the business combination shall be recorded into the initial recognition amount
of equity securities. 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
Notes to the financial statements Page 4Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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
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
Notes to the financial statements Page 5Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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
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.
2. Disposing subsidiaries by multiple transactions
Where the Company loses control of a subsidiary in multiple transactions in which it
Notes to the financial statements Page 6Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
disposes of its subsidiary in stages in determining whether to account for the multiple
transactions as a single transaction the Company shall consider all of the terms and
conditions of the transactions and their economic effects. One or more of the following
may indicate that the Company shall account for the multiple arrangements as a single
transaction:
(a) Arrangements are entered into at the same time or in contemplation of each other;
(b)Arrangements work together to achieve an overall commercial effect;
(c) The occurrence of one arrangement is dependent on the occurrence of at least one
other arrangement; and
(d)One arrangement considered on its own is not economically justified but it is
economically justified when considered together with other arrangements.If each of the multiple transactions forms part of a bundled transaction which eventually
results in loss of control of the subsidiary these multiple transactions shall be accounted
for as a single transaction. In the consolidated financial statements the difference between
the consideration received and the corresponding proportion of the subsidiary’s net assets
in each transaction prior to the loss of control shall be recognized in other comprehensive
income and transferred to the profit or loss when the Company eventually loses control of
the subsidiary.If each of the multiple transactions which eventually results in loss of control of the
subsidiary do not form part of a bundled transaction apply the treatment of disposing
partial long-term equity investments in a subsidiary without loss of control prior to the loss
of control. After the loss of control apply the treatment of disposing the subsidiary in
common cases.
(3) Acquiring the subsidiaries’ equity interest held by non-controlling shareholders
Where the Company has acquired a subsidiary’s equity interest held by non-controlling
shareholders the difference between the increase in the cost of long-term investments as a
result of acquisition of non-controlling interests and the share of net assets of the
subsidiary calculated continuously from the acquisition date or the combination date based
on the new shareholding proportion shall be adjusted to the capital reserve( capital
premium or share premium) in the consolidated financial statements. If the balance of the
capital reserve is not sufficient any excess shall be adjusted against retained earnings.
(4) Disposing portion of equity investments in subsidiaries without losing control
When the Company disposes of a portion of the long-term equity investments in a
subsidiary without loss of control the difference between the amount of the consideration
Notes to the financial statements Page 7Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
received and the corresponding portion of the nest assets of the subsidiary calculated
continuously from the acquisition date or the combination date related to the disposal of
the long-term equity investments shall be adjusted to the capital reserve (capital premium
or share premium) in the consolidated financial statements. If the balance of the capital
reserve is not sufficient any excess shall be adjusted against retained earnings.
(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 (13) Long-term equity investments under “ 3. Significant accountingpolicies and accounting estimates”.
(8) Recognition of cash and cash equivalents
Cash refers to the cash on hand and the unrestricted deposit. Cash equivalents are
investments held by the Company that are short-term highly liquid readily convertible into
known amounts of cash and subject to insignificant risk of changes in value.Notes to the financial statements Page 8Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(9) Foreign currency transaction and translation of foreign currency financial statements
1. Foreign currency transaction
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
Notes to the financial statements Page 9Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
asset as: financial assets measured at amortised cost financial assets measured at fair value
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.Notes to the financial statements Page 10Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
The Company may at initial recognition designate a financial liability as measured at fair
value through profit or loss because either:
(a) it eliminates or significantly reduces an accounting mismatch;
(b) a group of financial liabilities or financial assets and financial liabilities is managed and
its performance is evaluated on a fair value basis in accordance with a documented risk
management or investment strategy and information about the group is provided
internally on that basis to the entity’s key management personnel;
(c) the financial liability contains embedded derivatives that need to be separated.
2. Recognition and measurement of financial instruments
(1) Financial assets measured at amortised cost
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
Notes to the financial statements Page 11Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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
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 recognized in profit or loss. Changes in fair
value are included in profit or loss.Notes to the financial statements Page 12Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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 amortized cost
Financial liabilities measured at amortized 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.When the financial liabilities are derecognized the difference between the price obtained and.the carrying value shall be recognized 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.Notes to the financial statements Page 13Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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 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
Notes to the financial statements Page 14Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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 terminate 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 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
Notes to the financial statements Page 15Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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
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
Notes to the financial statements Page 16Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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) Inventory
1. Inventory classification
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 calculate 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 upon issuance.
(2) Packing materials shall be expensed in full upon issuance.
5. The basis for confirming the net realizable value of inventories and the methods to
make provision for the inventory impairment loss
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 products stock commodity material etc.)
held for direct selling in the daily business activity shall be calculated by deducting the
Notes to the financial statements Page 17Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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.
(12) 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”
(13) 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
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.Notes to the financial statements Page 18Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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
(1) Cost method
Notes to the financial statements Page 19Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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
transactions between the investor and investee which are attributable to asset impairment
shall be recognized in full.Notes to the financial statements Page 20Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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
between its fair value and book value on the date when control is lost shall be included in the
Notes to the financial statements Page 21Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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.
(14) 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.Details of classification depreciation period residual value rate and annual depreciation rate
are as follows:
Notes to the financial statements Page 22Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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
4. 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.
(15) 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.
(16) 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
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.Notes to the financial statements Page 23Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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
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
Notes to the financial statements Page 24Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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.
(17) 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
Item Estimated useful life Criteria
Land use right 50 years Land use right certificate
Software 10 years Estimated useful 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.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
Notes to the financial statements Page 25Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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.
(18) 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”
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 the shall be subject to an impairment test at least at the end of
each year.Notes to the financial statements Page 26Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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.
(19) 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.The long-term deferred expense shall be amortized over its beneficiary period evenly.
(20) 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
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.
(21) Employee benefits
Notes to the financial statements Page 27Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
1. Accounting treatment for short employee benefit
The Company shall recognize 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
None
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.Notes to the financial statements Page 28Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(22) 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.
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.The best estimate shall be conducted in accordance with the following situations
respectively:
If there is a continuous range for the necessary expenses and if all the outcomes within this
range are equally likely to occur the best estimate shall be determined in accordance with the
average estimate within the range that is the average of the upper and lower limit.If there is not a sequent range for the necessary expenses and if the outcomes within this
range are not equally likely to occur the best estimate shall be determined as follows:
(1) If the Contingencies concern a single item it shall be determined in the light of the most
likely outcome.
(2) If the Contingencies concern two or more items the best estimate shall be calculated and
determined in accordance with all possible outcomes and the relevant probabilities.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.Notes to the financial statements Page 29Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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.
(23) 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
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;
Notes to the financial statements Page 30Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(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;
(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
Notes to the financial statements Page 31Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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.
(24) 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.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 recognize 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
recognized as expenses.The company shall recognize in profit or loss a reversal of some or all of an impairment loss
previously recognized 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 recognized previously.Notes to the financial statements Page 32Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(25) 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.The standard of the Company recognizing the government subsidies related to assets is:
an entity qualifying for them should purchase construct or otherwise acquire long-term
assets.The standard of the Company recognizing the government subsidies related to income is:
In addition to government subsidies related to assets government subsidies that have
been clearly targeted for subsidies.
2. Recognition
Government grants 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 caring 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
Notes to the financial statements Page 33Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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
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.
(26) 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 tax assets and deferred tax liabilities are calculated based on the difference
between the tax bases of assets and liabilities and their carrying amounts (temporary
differences).Income tax includes current income tax and deferred income tax. Except for income tax
arising from business mergers and transactions or events that are directly included in
owner's equity (including other comprehensive income) the company will include current
income tax and deferred income tax in current profit and 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.Notes to the financial statements Page 34Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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.On 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.On 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.Notes to the financial statements Page 35Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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.
(27) 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;
Notes to the financial statements Page 36Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
* 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 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. (18) 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:
* Fixed payment (including in-substance fixed payment) less any lease incentives
receivable;
* Variable lease payments that depend on an index or a ratio;
* Amounts expected to be payable by the lease under residual value guarantees;
* The exercise price of the purchase option if the lease is reasonably certain to exercise
that option;
* 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.Notes to the financial statements Page 37Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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
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;
* 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
Notes to the financial statements Page 38Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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-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
Notes to the financial statements Page 39Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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. (23) 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 III. (27)
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
Notes to the financial statements Page 40Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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.
(28) 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 cost of inventories includes the fair
value of waived claims and other costs directly attributable to the asset incurred in bringing
the asset to its present location and condition such as taxes transportation handling charges
insurance etc. The cost of an investment in an associate or joint venture includes the fair
value of waived claims and other costs such as taxes directly attributable to the asset. The
cost of investment property includes the fair value of claims relinquished and other costs such
as taxes directly attributable to the asset. The cost of fixed assets includes the fair value of
waived claims and other costs directly attributable to the asset incurred before the asset is
ready for its intended use such as taxes transportation costs handling charges installation
costs professional service fees etc. The cost of biological assets includes the fair value of
waived claims and other costs directly attributable to the asset such as taxes transportation
costs insurance premiums etc. The cost of an intangible asset includes the fair value of
claims waived and other costs such as taxes that are directly attributable to bringing the
Notes to the financial statements Page 41Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
asset to its intended use. If a debt restructuring by converting debt into equity instruments
results in the creditor converting its claims into equity investments in associates or joint
ventures the Company measures its initial investment cost at the fair value of the claims
waived and other costs such as taxes directly attributable to the asset. The difference between
the fair value and the book value of the waived claims is included in the current profit and
loss. If the debt restructuring is carried out by modifying other terms the Company shall
recognize and measure the restructured claims in accordance with "III. (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 III. (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.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 “III. (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
Notes to the financial statements Page 42Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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.
(29) 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
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 fluctuation 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 (11) 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
Notes to the financial statements Page 43Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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 (18) 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
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 (14) Fixed Assets and note 3 (17) 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
Notes to the financial statements Page 44Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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.
(30) Methods for determining materiality standards and basis for selection
Items Materiality Standards
Material Accounts receivable The company considers accounts receivable exceeding RMB 5 million asmaterial accounts receivable.Material Accounts payable The company considers accounts payable exceeding RMB 5 million asmaterial accounts payable.Material Other payables The company considers other payables exceeding RMB 5 million as materialother payables.The company considers the top 10 projects transferred to fixed assets during
Material Construction in the current period or the top 10 projects with a balance at the end of the period
progress and a total amount exceeding RMB 50 million as material construction in
progress.Material Joint ventures and The company considers investments in joint ventures or associated enterprises
associates with an ending balance of more than RMB 100 million as material jointventures or associated enterprises.Subsidiaries whose total assets/total revenue/total profit exceed 15% of the
Material Subsidiaries group's total assets/total revenue/total profit are considered as material
subsidiaries.
(31) Change of significant accounting policy and accounting estimate
1. Change of major accounting policy during this reporting period
There is no change of major accounting policy during the reporting period.
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 output tax is calculated based on the
sales of goods and taxable services
Value-added Tax (VAT) calculated in accordance with the tax law. 6% 9% 13%
After deducting the input tax that is
allowed to be deducted in the current
Notes to the financial statements Page 45Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
period the difference is the value-added
tax payable.Based on VAT and business tax actually
City maintenance and construction tax 5% 7%
paid
See the table below
Corporate income tax Based on taxable income
for 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
Changchun Bengang Steel & Iron Sales 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
Northern Hengda Logistics Co. Ltd. 25
Green Gold (Benxi) Renewable Resources Co. Ltd. 25
(2) Tax Preference
1. The company has obtained a High-Tech Enterprise Certificate certificate number:
GR202421001555 valid from November 27 2024 to November 27 2027. The company is
subject to a reduced corporate income tax rate of 15%.
2. Bengang 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 took effect on March 1 2022. The
Notes to the financial statements Page 46Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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) was
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
Value-Added Tax Preferential Terms for Comprehensive Resource Utilization Products and
Services" and enjoy the value-added tax refund policy.
4. On September 3 2023 the Ministry of Finance and the State Administration of Taxation
issued the "Announcement on the VAT Additional 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
this announcement allows advanced manufacturing enterprises to deduct the payable VAT
by adding 5% to the current deductible input tax. Bengang Posco Cold-Rolled Sheet Co.Ltd. a subsidiary of the Company belongs to the advanced manufacturing industry and
enjoys the VAT additional deduction policy.Notes to the financial statements Page 47Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
5. Notes to the consolidated financial statements
(1) Cash at bank and on hand
Items 2025/06/30 2024/12/31
Cash on hand
Digital Currency
Cash at bank 880662131.03 363006448.43
Other monetary funds 1001459617.18 863683251.57
Funds placed in a finance company account 237849896.52 1227198770.48
Total 2119971644.73 2453888470.48
Including：Total amount deposited abroad
Funds deposited overseas with
restrictions on repatriation
Notes: As at 30 June 2025 bank acceptance deposit of RMB 1001459617.18 was not recognized as
cash and cash equivalents in the cash flow statement.
(2) Notes receivable
1. Notes receivable disclosed by category
Items 2025/06/30 2024/12/31
Bank acceptance bill 114107007.89 241529481.42
Commercial acceptance bill 306676013.34 365750000.00
Total 420783021.23 607279481.42
Notes to the financial statements Page 48Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
2. Notes receivable disclosed by bad debt accrual method
2025/06/302024/12/31
Provision for bad Provision for bad
Carrying amount Carrying amount
Items debts debts
Book value Book value
Percentage Bad debts Percentage Bad debts
Amount Amount Amount Amount
(%) ratio (%) (%) ratio (%)
Provision for bad
debts individually
Provision for bad
debts based on
420783021.23100.00420783021.23607279481.42100.00607279481.42
portfolio of credit
risk characteristics
Total 420783021.23 100.00 420783021.23 607279481.42 100.00 607279481.42
Notes to the financial statements Page 49Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Provision for bad debts based on portfolio of credit risk characteristics
Portfolio items:
2025/06/30
Items
Notes receivable Provision for bad debts Bad debts ratio (%)
Commercial acceptance bill 306676013.34
Bank acceptance bill 114107007.89
Total 420783021.23
3. The pledged acceptance bill
Items Notes receivable pledged at the end of period
Bank acceptance bill 67041187.99
Commercial acceptance bill
Total 67041187.99
4. The amount of notes receivable endorsed over or discounted but not yet matured
Amount terminated at the end Amount was not terminated at
Items
of the period the end of the period
Bank acceptance bill 4517795874.04 5065819.90
Commercial acceptance bill 306676013.34
Total 4517795874.04 311741833.24
(3) Accounts receivable
1. Accounts receivable disclosed by aging
Items 2025/06/30 2024/12/31
Within 1 year (inclusive) 930029176.10 478210867.53
1-2 years (inclusive) 9502894.65 5786445.58
2-3 years (inclusive) 4952094.14 28559402.34
3-4 years (inclusive) 28559318.54 557413.41
4-5 years (inclusive) 556497.21 5592931.88
over 5 years 374102284.68 379435859.17
Notes to the financial statements Page 50Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items 2025/06/30 2024/12/31
Subtotal 1347702265.32 898142919.91
Less: Provision for bad debts 414459100.51 396658838.18
Total 933243164.81 501484081.73
Notes to the financial statements Page 51Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
2. Accounts receivable disclosed by the bad debt accrual method
2025/06/302024/12/31
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 324142239.74 24.05 324142239.74 100.00 334963124.35 37.30 334963124.35 100.00
individually
Tested for
impairment 1023560025.58 75.95 90316860.77 8.82 933243164.81 563179795.56 62.70 61695713.83 10.95 501484081.73
by portfolio
Include:
Aging
1023560025.5875.9590316860.778.82933243164.81563179795.5662.7061695713.8310.95501484081.73
portfolio
Risk-free
portfolio
Notes to the financial statements Page 52Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
2025/06/302024/12/31
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 (%) (%)
(%)
Total 1347702265.32 100.00 414459100.51 933243164.81 898142919.91 100.00 396658838.18 501484081.73
Notes to the financial statements Page 53Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Significant accounts receivables tested for impairment individually:
2025/06/302024/12/31
Bad
debt
Company Provision for Provision for
Carrying amount s Reason Carrying amount bad debts
bad debts
ratio
(%)
Benxi Nanfen Disconti
Xinhe Metallurgical 100. nued
48196244.6848196244.6848196244.6848196244.68
Furnace Material 00
Co. Ltd
Brilliance Bankrup
100.
Automotive Group 275945995.06 275945995.06 tcy 286766879.67 286766879.67
00
Holdings Co. Ltd.Total 324142239.74 324142239.74 334963124.35 334963124.35
Provision for bad debts based on portfolio of credit risk characteristics
Provision for bad debts by portfolio: Aging analysis
2025/06/30
Items
Account Receivable Provision for bad debts Bad debt ratio（%）
Within 1 year
930029176.109300291.791.00
(inclusive)
1-2 years (inclusive) 9502894.65 950289.47 10.00
2-3 years (inclusive) 4952094.14 990418.82 20.00
3-4 years (inclusive) 28559318.54 28559318.54 100.00
4-5 years (inclusive) 556497.21 556497.21 100.00
over 5 years 49960044.94 49960044.94 100.00
Total 1023560025.58 90316860.77
3. The provision for bad debts accrued reversed or recovered in the current period
Items 2024/12/31 Changes during the current period 2025/06/30
Notes to the financial statements Page 54Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Write-off
Reversed or or Other
Accrued
recovered Write-bac changes
k
Provision
for bad 396658838.18 28621146.94 10820884.61 414459100.51
debts
Total 396658838.18 28621146.94 10820884.61 414459100.51
Significant amount of bad debt provision recovered or reversed during the period:
Basis for determining
Reversed or Recovered the original bad debt
Company Reason
recovered amount method provision and its
reasonableness
Brilliance
Debt restructuring
Automotive Group 10820884.61 Repayment Bank deposit
agreements
Holdings Co. Ltd.Total 10820884.61
4. Top five debtors and contract assets at the end of the period
Percentage
Accounts Contract
(%) to Provision for
Company receivable at assets at Total
Total bad debts
period end period end
amount
Angang Group
International
Economic & Trade 579141895.93 579141895.93 42.97 5791418.96
Co. Ltd. Benxi
Branch
Brilliance
Automotive Group 275945995.06 275945995.06 20.48 275945995.06
Holdings Limited
Benxi Beiying 65344301.60 65344301.60 4.85 653443.02
Notes to the financial statements Page 55Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Percentage
Accounts Contract
(%) to Provision for
Company receivable at assets at Total
Total bad debts
period end period end
amount
Iron and Steel
(Group) Co. Ltd.Liaoning North
Coal Chemical
56241715.6756241715.674.175241185.70
Industry (Group)
Co. Ltd.Bengang
Refractories Co. 48439238.13 48439238.13 3.59 27525071.75
Ltd.Total 1025113146.39 1025113146.39 76.06 315157114.49
(4) Accounts receivable financing
1. Accounts receivable financing by category
Items 2025/06/30 2024/12/31
Notes Receivable 5552656.65 64399942.70
Accounts Receivable
Total 5552656.65 64399942.70
Notes to the financial statements Page 56Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(5) Prepayments
1. Prepayments disclosed by aging
2025/06/302024/12/31
Aging Percentage Percentage
Amount Amount
(%)(%)
Within 1 year
758650468.4692.40370426337.8394.54
(inclusive)
1-2 years (inclusive) 51733521.39 6.30 8643434.04 2.21
2-3 years (inclusive) 7616027.07 0.93 10372837.63 2.65
Over 3 years 3032048.37 0.37 2380526.37 0.61
Total 821032065.29 100.00 391823135.87 100.00
Notes: There were no outstanding prepayments over 1 year.
2. Top five prepaid companies at the end of the period
Name of the company Ending balance Percentage (%)
Angang Group International Economic & Trade Co.
386757348.1847.11
Ltd. Benxi Branch
China Railway Shenyang Bureau Group Co. Ltd.
64189262.357.82
Shenyang Railway Logistics Center
Shanxi Coking Coal Energy Group Co. Ltd. 62812041.38 7.65
Hangzhou Hangyang Air Separation Spare Parts Co.
56204279.006.85
Ltd.State Grid Liaoning Electric Power Co. Ltd. Benxi
50000000.006.09
Power Supply Company
Total 619962930.91 75.52
(6) Other receivables
Items 2025/06/30 2024/12/31
Interest receivables
Dividend receivables
Notes to the financial statements Page 57Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items 2025/06/30 2024/12/31
Other receivables 16354769.47 149015138.26
Total 16354769.47 149015138.26
1. Other receivables
(1) Other receivables disclosed by aging
Items 2025/06/30 2024/12/31
Within 1 year (inclusive) 2389539.78 58452918.98
1-2 years (inclusive) 2612106.55 91693078.45
2-3 years (inclusive) 16979176.66 13520953.62
3-4 years (inclusive) 784068.83 3962574.01
4-5 years (inclusive) 3717335.08 842882.51
over 5 years 52979511.11 52141851.60
Subtotal 79461738.01 220614259.17
Less: Provision for bad debts 63106968.54 71599120.91
Total 16354769.47 149015138.26
Notes to the financial statements Page 58Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(2) Disclosed by bad debt accrual method
2025/06/302024/12/31
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
18192317.0022.8918192317.00100.0018192317.008.2518192317.00100.00
debts individually
Provision for bad
debts based on
61269421.0177.1144914651.5473.3116354769.47202421942.1791.7553406803.9126.38149015138.26
portfolio of credit
risk characteristic
Include:
Aging portfolio 60872327.09 76.61 44914651.54 73.79 15957675.55 202194971.97 91.65 53406803.91 26.41 148788168.06
Risk-free
397093.920.50397093.92226970.200.10226970.20
portfolio
Total 79461738.01 100.00 63106968.54 16354769.47 220614259.17 100.00 71599120.91 149015138.26
Notes to the financial statements Page 59Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Significant other receivables tested for impairment individually:
2025/06/302024/12/31
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 12504978.59 100.00 Discontinued 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
2025/06/30
Items
Amount Provision for bad debts Percentage（%）
Within 1 year
2025134.7020251.351.00
(inclusive)
1-2 year (inclusive) 2579417.71 257941.77 10.00
2-3 year (inclusive) 14539145.32 2907829.06 20.00
3-4 year (inclusive) 784068.83 784068.83 100.00
4-5 year (inclusive) 3072337.08 3072337.08 100.00
Aver 5 years 37872223.45 37872223.45 100.00
Total 60872327.09 44914651.54
(3) Information of provision for bad debts
Stage one Stage two Stage three
Provision for bad debts Total
Notes to the financial statements Page 60Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
lifetime expected lifetime expected
12-month
credit losses (credit credit losses (credit
expected credit
impairment has not impairment has
losses
occurred) already occurred)
Balance at the end of the previous
582286.0211629495.4359387339.4671599120.91
year
Beginning balance during current
period
--Transfer to the second stage -515883.54 515883.54
--Transfer to the third stage -784068.83 784068.83
--Write-back to the second stage
--Write-back to the first stage
Accrual for the current period -46151.13 -8195539.31 -250461.93 -8492152.37
Reversal during the current period
Write-back of the current period
Write-off during the current period
Other changes
Ending balance 20251.35 3165770.83 59920946.36 63106968.54
(4) Information of provision reversal or recovery of bad debts of current period
Changes during the current period
Reversal
Items 2024/12/31 Write-back 2025/06/30
Accrual or Others
or write-off
recovered
Bad debt
provision
for other 71599120.91 -8492152.37 63106968.54
receivables
Total 71599120.91 -8492152.37 63106968.54
(5) Other receivables disclosed by nature
Nature 2025/06/30 2024/12/31Compensation for the “Living
87177700.00Show Belt” project
Notes to the financial statements Page 61Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Nature 2025/06/30 2024/12/31
Current Account 76304976.38 130478649.66
Others 3156761.63 2957909.51
Total 79461738.01 220614259.17
(6) Top five other receivables at the end of the period
Percentage of
Provision for
Nature or total other
Company Amount Aging bad debts at
content receivables
2025/06/30
(%)
Benxi Iron and
Steel (Group)
4-5 years
No. 3 Current
12504978.59 over 5 15.74 12504978.59
Architectural Account
years
Engineering Co.Ltd.Benxi Iron and
Steel (Group)
No. 1 Current over 5
3247307.074.093247307.07
Architectural Account years
Engineering Co.Ltd.Benxi Iron &
Current 1-2 years
Steel (Group) 2674500.00 3.37 413000.00
Account 2-3 years
Co. Ltd..Liaoning
Huawei Coal Current over 5
2261360.002.852261360.00
Preparation Co. Account years
Ltd.
3-4 years
Benxi Ganglian Current 4-5 years
1916960.242.411916960.24
Slag Co. Ltd. Account over 5
years
Total 22605105.90 28.46 20343605.90
Notes to the financial statements Page 62Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(7) Inventories
1. Inventories disclosed by category
2025/06/302024/12/31
Inventory Inventory
impairment/ impairment/
Items
Gross carrying amount Impairment of Book value Gross carrying amount Impairment of Book value
contract fulfillment contract
costs fulfillment costs
Raw material 4273091213.39 210474517.51 4062616695.88 4300063154.21 247221306.73 4052841847.48
Work in progress 1887888280.15 39066684.19 1848821595.96 2001147780.74 26685410.19 1974462370.55
Finished goods 1157759803.34 19260495.81 1138499307.53 1337346627.43 31566151.19 1305780476.24
Total 7318739296.88 268801697.51 7049937599.37 7638557562.38 305472868.11 7333084694.27
2. Impairment of inventory and contract fulfillment cost
Increase Decrease
Category 2024/12/31 Write-back or 2025/06/30
Provision Others Others
write-off
Raw material 247221306.73 -36746789.22 210474517.51
Notes to the financial statements Page 63Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Increase Decrease
Category 2024/12/31 Write-back or 2025/06/30
Provision Others Others
write-off
Work in progress 26685410.19 12381274.00 39066684.19
Finished goods 31566151.19 -12305655.38 19260495.81
Total 305472868.11 -36671170.60 268801697.51
Notes to the financial statements Page 64Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(8) Other current assets
Items 2025/06/30 2024/12/31
VAT input tax 278714164.92 401503924.78
Others 81415483.63 35577335.88
Total 360129648.55 437081260.66
Notes to the financial statements Page 65Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(9) Long-term equity investment
1. Long-term equity investment
Increase/decrease
Income or
Impairment loss on Impairment
Other Declaration
provision Addition Reduction investment Other provision
Investees 2024/12/31 Comprehensive of Cash 2025/06/30
as of of of recognized Equity Provision Others as of
Income Dividends
2024/12/31 Investment Investment under the Changes 2025/06/30
Adjustment or Profit
equity
method
1. Joint
Venture
Subtotal
2. Associated
45413221.7245413221.72
Enterprise
Shenyang
Xiangyu New
45413221.7245413221.72
Material
Technology
Notes to the financial statements Page 66Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Increase/decrease
Income or
Impairment loss on Impairment
Other Declaration
provision Addition Reduction investment Other provision
Investees 2024/12/31 Comprehensive of Cash 2025/06/30
as of of of recognized Equity Provision Others as of
Income Dividends
2024/12/31 Investment Investment under the Changes 2025/06/30
Adjustment or Profit
equity
method
Co. Ltd.Subtotal 45413221.72 45413221.72
Total 45413221.72 45413221.72
Notes to the financial statements Page 67Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(10) Other equity instrument investment
1. The information of other equity instrument investment
Reasons for
Losses
Gains recognized Accumulated gains Accumulated designation as at
recognized in
in other in other losses in other Dividend fair value
Items 2025/06/30 2024/12/31 other
comprehensive comprehensive comprehensive income through other
comprehensive
income income income comprehensive
income
income
Suzhou Longben
Metal Materials 3940544.25 3940544.25 51564.25
Co. Ltd.Northeast
Special Steel 929485710.38 929485710.38 108250138.62
Group Co. Ltd.Sinosteel
Shanghai Steel
14414693.00
Processing Co.Ltd.Total 933426254.63 933426254.63 51564.25 122664831.62
Notes to the financial statements Page 68Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(11) Fixed assets
1. Fixed assets and Disposal of fixed assets
Items 2025/06/30 2024/12/31
Fixed assets 26050690523.41 26426320453.57
Disposal of fixed assets
Total 26050690523.41 26426320453.57
Notes to the financial statements Page 69Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
2. Details of fixed assets
Transportation Furniture and office
Items Buildings Machinery Total
equipment and others equipment
1．Gross carrying amount
（1）31 December 2024 14262023176.62 52705897283.61 400985732.35 242916091.60 67611822284.18
（2）Increase in current period 10541517.86 469603686.13 1635014.37 363347.27 482143565.63
—Including: Purchase 1958197.73 475557.53 2433755.26
—Transferred from
10541517.86467645488.401159456.84363347.27479709810.37
construction in progress
—Increase in corporate
mergers
— Transferred from sale
and leaseback
—Others
（3）Decrease in current period 37774604.42 203597429.13 11443407.48 252815441.03
—Including: Disposal or
37774604.42203597429.1311443407.48252815441.03
scrapped
— transfer to sale and
leaseback
Notes to the financial statements Page 70Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Transportation Furniture and office
Items Buildings Machinery Total
equipment and others equipment
—Others
（4）30 June 2025 14234790090.06 52971903540.61 391177339.24 243279438.87 67841150408.78
2．Total accumulated depreciation
（1）31 December 2024 6843827644.40 33772852695.68 320082643.21 137437495.66 41074200478.95
（2）Increase in current period 121452679.21 681517928.15 5527218.35 17337579.61 825835405.32
—Including: Provision 121452679.21 681517928.15 5527218.35 17337579.61 825835405.32
—Increase in corporate
mergers
—Others
（3）Decrease in current period 24679246.15 181068815.01 10928111.56 216676172.72
—Including: Disposal or
24679246.15181068815.0110928111.56216676172.72
scrapped
— transfer to sale and
leaseback
—Others
（4）30 June 2025 6940601077.46 34273301808.82 314681750.00 154775075.27 41683359711.55
3．Total impairment
（1）31 December 2024 83249691.92 28051659.74 111301351.66
Notes to the financial statements Page 71Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Transportation Furniture and office
Items Buildings Machinery Total
equipment and others equipment
（2）Increase in current period
—Including: Provision
—Other
（3）Decrease in current period 833674.57 3367503.27 4201177.84
—Including: Disposal or
833674.573367503.274201177.84
scrapped
（4）30 June 2025 82416017.35 24684156.47 107100173.82
4．Net book value
（1）30 June 2025 7211772995.25 18673917575.32 76495589.24 88504363.60 26050690523.41
（2）31 December 2024 7334945840.30 18904992928.19 80903089.14 105478595.94 26426320453.57
Notes to the financial statements Page 72Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
3. Temporarily idle Fixed assets
Gross carrying Accumulated
Items Impairment Book value Note
amount depreciation
Buildings 112751517.87 68351097.47 41943853.74 2456566.66
Machinery 3034473.01 2434878.60 75666.43 523927.98
Total 115785990.88 70785976.07 42019520.17 2980494.64
4. Fixed assets leased out by operating lease
Items Amount as at 2025/06/30
Buildings 21322330.90
Machinery 493275.96
5. Fixed assets without property rights certificates at the end of the period
Items Book value Reason
Buildings 2293774311.90 In process
(12) Construction in progress
1. Construction in progress and Construction materials
2025/06/302024/12/31
Total Total
Items Gross carrying Gross carrying
impair Book value impair Book value
amount amount
ment ment
Construction in
4537418033.004537418033.003934442501.503934442501.50
progress
Project materials 102000.00 102000.00
Total 4537520033.00 4537520033.00 3934442501.50 3934442501.50
2. Details of construction in progress
Notes to the financial statements Page 73Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
2025/06/302024/12/31
Items Total Total
Gross carrying amount impairme Book value Gross carrying amount Book value
impairment
nt
Special Steel Electric Furnace
Capacity Replacement Project 501616506.41 501616506.41 483671390.32 483671390.32
Desulphurization Waste Liquor
Acid Making Project in Plates 82436988.98 82436988.98 79335324.68 79335324.68
Iron Making Plant
CCPP Power Generation
Project 40983279.77 40983279.77
Cold Rolling Transformation
Project 527591479.48 527591479.48 492919655.40 492919655.40
Plate No.1 Dry Quenching
System Boosting Modification
and Unit No.34 New 41865108.63 41865108.63 41832708.63 41832708.63
Construction
Environmental Protection
Renovation of Plate Raw 170714302.21 170714302.21 160208719.65 160208719.65
Material Plant
Capacity Replacement Project
of No. 5 Blast Furnace of
Bensteel Ironmaking Plant
(Energy-saving and 59158434.85 59158434.85 55645429.58 55645429.58
Environmental Protection
Renovation of No. 5 Blast
Furnace of Ironmaking Plant)
Environmental Protection
Renovation in No. 2 Coal
Storage Field of Plates Raw 129712436.30 129712436.30 119656230.22 119656230.22
Material Plant
Centralized Control Project
before Ironmaking of Plates 95347372.59 95347372.59 80258847.34 80258847.34
Iron Making Plant
1780 Production Line 78531654.02 78531654.02 78531654.02 78531654.02
Notes to the financial statements Page 74Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
2025/06/302024/12/31
Items Total Total
Gross carrying amount impairme Book value Gross carrying amount Book value
impairment
nt
Upgrading
Flue Gas Desulfurization and
Denitrification Project of 4B
and 5 Furnace Group in 44996882.65 44996882.65 44724618.50 44724618.50
Bengang Plates and Iron
Making General Plant
Plate Hot Rolling Mill 2300
Line Reheating Furnace 40082001.71 40082001.71 15500355.74 15500355.74
Overhaul
Bengang Plate intelligent
factory Project 70802016.40 70802016.40 53198819.53 53198819.53
Centralized Control Project
before Ironmaking of Plates 118866661.12 118866661.12 107816471.12 107816471.12
Iron Making Plant
Steam Drum to Electric Drum
Conversion Project of the Plate 101052630.63 101052630.63 48987269.15 48987269.15
Energy Management Center
Retrofit of Dust Removal
System in No.7 Blast Furnace
Area at Ironmaking General 41811530.65 41811530.65 31296143.60 31296143.60
Works
Environmental Treatment of
Blast Furnace Ore Bins at Plate 40224780.25 40224780.25 32949949.75 32949949.75
Ironmaking General Works
Retrofit of the Dust Removal
System in the New No.1 Blast
Furnace Area at the Ironmaking 61538258.24 61538258.24 46333893.64 46333893.64
General Works
Renovation of the dust removal
system in the No. 6 blast
furnace area of ? ? the Iron 85659983.64 85659983.64 64377725.64 64377725.64
and Steel Plant
Ultra-low emission 68764255.19 68764255.19 68740566.29 68740566.29
Notes to the financial statements Page 75Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
2025/06/302024/12/31
Items Total Total
Gross carrying amount impairme Book value Gross carrying amount Book value
impairment
nt
transformation of the dust
removal system in the original
No.3 operation areas of the Iron
and Steel Plant
Fully Enclosed Belt Conveyor
Gallery Project at Benxi Steel
Plate Ironmaking General 41066754.90 41066754.90 34238770.60 34238770.60
Works
Environmental Treatment of the
First and Second Mixing
Systems for Sinter Machine at 53010960.00 53010960.00 37822726.20 37822726.20
Plate Ironmaking General
Works
Environmental Protection
Retrofit of the Second Sintering
Stockyard at the Plate 123593411.85 123593411.85 46697183.08 46697183.08
Ironmaking General Works
Renovation of the Hot Blast
Furnace and Heat Exchanger of
the No.7 Blast Furnace in Plate 18011658.51 18011658.51 120538633.05 120538633.05
Ironmaking Plant
Refractory Materials Retrofit
for No.7 Blast Furnace at Plate 42452368.58 42452368.58 30936881.22 30936881.22
Ironmaking General Works
Renovation of cooling
equipment of No.7 blast
furnace in Plate Ironmaking 22160409.68 22160409.68 65430926.20 65430926.20
Plant
Power Grid Upgrade for the
Plate Energy Center 93546578.80 93546578.80
Supercritical Power Project
Hazard Rectification of Taizi
River Railway Bridge at 38941440.23 38941440.23 33150135.48 33150135.48
Notes to the financial statements Page 76Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
2025/06/302024/12/31
Items Total Total
Gross carrying amount impairme Book value Gross carrying amount Book value
impairment
nt
Railway Transportation
Company
Special Steel Rolling Mill
Renovation Project 66788087.90 66788087.90 59562329.18 59562329.18
Others 1677073078.60 1677073078.60 1359095863.92 1359095863.92
Total 4537418033.00 4537418033.00 3934442501.50 3934442501.50
Notes to the financial statements Page 77Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
3. Changes in important construction projects in the current period
Project
Transferred cumulative
Other Including： Interest
to fixed investment Accumulated
decrease Project Interest capitalization
Increase during asset accounted amount of Sources of
Items Budget 2024/12/31 during 2025/06/30 progress capitalization rate in
current period during for the interest funds
current (%) amount in current
current proportion capitalization
period current period period (%)
period of the
budget (%)
Special Steel
Electric
Furnace Fund
1732481000.00483671390.3217945116.09501616506.4193.2093.2015603704.0867648603.374.08
Capacity raising
Replacement
Project
Cold Rolling Loan
Transformation from
843640000.00492919655.4034671824.08527591479.4895.8295.8212115610.3352224686.794.08
Project financial
institute
Environmental
Loan
Protection
from
Renovation of 1286370000.00 160208719.65 10505582.56 170714302.21 37.39 37.39 9976126.85 46740897.37 4.08
financial
Sheet Raw
institute
Material Plant
Environmental
Protection and
Intelligent
Loan
Upgrading and
from
Retrofit for 310000000.00 119656230.22 10056206.08 129712436.30 96.76 96.76 5027425.08 14120324.33 4.08
financial
Plate Material
institute
Yard –
Environmental
Protection
Notes to the financial statements Page 78Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Project
Transferred cumulative
Other Including： Interest
to fixed investment Accumulated
decrease Project Interest capitalization
Increase during asset accounted amount of Sources of
Items Budget 2024/12/31 during 2025/06/30 progress capitalization rate in
current period during for the interest funds
current (%) amount in current
current proportion capitalization
period current period period (%)
period of the
budget (%)
Retrofit Project
for No.2 Coal
Storage Yard
Plate energy
centralized 119730000.00 80258847.34 15088525.25 95347372.59 79.64 79.64 Others
control project
Centralized
Control Project
before
Ironmaking of 162000000.00 107816471.12 11050190.00 118866661.12 73.37 73.37 Others
Plates Iron
Making
General Plant
Project of
Converting
Steam Drums
to Electric
Drums at the 187900000.00 48987269.15 52065361.48 101052630.63 55.54 55.54 Others
Plate Energy
Management
and Control
Center
Environmental
Protection
Retrofit of the 199880000.00 46697183.08 76896228.77 123593411.85 61.83 61.83 Others
Second
Sintering
Notes to the financial statements Page 79Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Project
Transferred cumulative
Other Including： Interest
to fixed investment Accumulated
decrease Project Interest capitalization
Increase during asset accounted amount of Sources of
Items Budget 2024/12/31 during 2025/06/30 progress capitalization rate in
current period during for the interest funds
current (%) amount in current
current proportion capitalization
period current period period (%)
period of the
budget (%)
Stockyard at
the Plate
Ironmaking
General Works
Renovation of
the dust
removal
system in the
99970000.00 64377725.64 21282258.00 85659983.64 85.69 85.69 Others
No. 6 blast
furnace area of
? ? the Iron
and Steel Plant
Power Grid
Upgrade for
the Plate
264470000.00 93546578.80 93546578.80 35.37 35.37 Others
Energy Center
Supercritical
Power Project
Total 1604593491.92 343107871.11 1947701363.03 42722866.34 180734511.86
Notes to the financial statements Page 80Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(13) Right of use assets
1. Right of use assets
Items Land Buildings Machinery Total
1. Gross carrying
amount
(1) 31 December 2024 1132274415.17 368465367.56 444230189.48 1944969972.21
(2) Increase in current
period
—Addition
—Others
(3) Decrease in current
period
—Disposal or
scrapping
—Others
(4) 30 June 2025 1132274415.17 368465367.56 444230189.48 1944969972.21
2 ． Total accumulated
depreciation
(1) 31 December 2024 159616944.92 81881192.96 17546124.19 259044262.07
(2) Increase in current
19952118.1210235149.149254795.5839442062.84
period
—Provision 19952118.12 10235149.14 9254795.58 39442062.84
(3) Decrease in current
period
—Disposal or
scrapping
—Others
(4) 30 June 2025 179569063.04 92116342.10 26800919.77 298486324.91
3．Total impairment
(1) 31 December 2024
(2) Increase in current
period
—provision
Notes to the financial statements Page 81Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items Land Buildings Machinery Total
(3) Decrease in current
period
—Disposal or
scrapping
—Others
(4) 30 June 2025
4．Total net book value
(1) 30 June 2025 952705352.13 276349025.46 417429269.71 1646483647.30
(2) 31 December 2024 972657470.25 286584174.60 426684065.29 1685925710.14
(14) Intangible assets
1. Details of intangible assets
Items Software Land use right Total
1．Total of original value
（1）31 December 2024 4439653.03 489429922.52 493869575.55
（2）Increase
—Purchase
—Internal R&D
—Increase in Mergers
—Others
（3）Decrease
—Disposal
—Others
（4）30 June 2025 4439653.03 489429922.52 493869575.55
2．Total Accumulated Amortization
（1）31 December 2024 686823.46 98402683.41 99089506.87
（2）Increase 591383.33 4981114.05 5572497.38
—Provision 591383.33 4981114.05 5572497.38
（3）Decrease
—Disposal
—Others
Notes to the financial statements Page 82Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items Software Land use right Total
（4）30 June 2025 1278206.79 103383797.46 104662004.25
3．Total of Impairment
（1）31 December 2024
（2）Increase
—Provision
（3）Decrease
—Disposal
—Others
（4）30 June 2025
4．Net book value
（1）30 June 2025 3161446.24 386046125.06 389207571.30
（2）31 December 2024 3752829.57 391027239.11 394780068.68
2. Land use right without property rights certificates at the end of the period
Items Book value Reason
Land use right 3120324.41 In process
Total 3120324.41
(15) Deferred tax asset and deferred tax liability
1. Deferred tax assets before taking into consideration of the balance offsetting
2025/06/302024/12/31
Deductible Deductible
Items Deferred tax Deferred tax
temporary temporary
asset asset
differences differences
Deferred tax assets:
Impairment 577451931.50 86958178.87 598249997.63 90011580.45
Changes in fair value
of other financial
assets recognized in 122664831.62 18399724.74 122664831.62 18399724.74
other comprehensive
income
Notes to the financial statements Page 83Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
2025/06/302024/12/31
Deductible Deductible
Items Deferred tax Deferred tax
temporary temporary
asset asset
differences differences
Lease liabilities 1731624850.40 259743727.56 1752154297.33 262823144.60
Total 2431741613.52 365101631.17 2473069126.58 371234449.79
2. Deferred tax liabilities before taking into consideration of the balance offsetting
2025/06/302024/12/31
Taxable Taxable
Items Deferred tax Deferred tax
temporary temporary
liabilities liabilities
differences differences
Deferred tax
liabilities:
Changes in fair value
of other financial
assets recognized in 31158.29 4673.74 31158.29 4673.74
other comprehensive
income
Right-of-use assets 1646483647.30 246972547.10 1685925710.14 252888856.52
Total 1646514805.59 246977220.84 1685956868.43 252893530.26
3. Unrecognized deferred tax assets
Items 2025/06/30 2024/12/31
Deductible temporary differences 276016008.88 286782181.23
Deductible losses 11135387057.05 9484867801.78
Total 11411403065.93 9771649983.01
4. The deductible loss of unrecognized deferred tax assets due in the following period
Year 30 June 2025 31 December 2024 Notes
Notes to the financial statements Page 84Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Year 30 June 2025 31 December 2024 Notes
Year 2025 9940190.02
Year 2026 6799314.77 6799314.77
Year 2027 8117351.82 8117351.82
Year 2028
Year 2029 221316382.16
Year 2030
Year 2031
Year 2032 1911715647.99 1911715647.99
Year 2033 2367541315.76 2367541315.76
Year 2034 5125613839.53 5180753981.42
Year 2035 1494283205.02
Total 11135387057.05 9484867801.78
(16) Other non-current assets
2025/06/302024/12/31
Items Gross carrying Gross carrying
Impairment Book value Impairment Book value
amount amount
Prepayment
for
63242806.7563242806.7586297275.1686297275.16
engineering
equipment
Total 63242806.75 63242806.75 86297275.16 86297275.16
Notes to the financial statements Page 85Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(17) Assets with restricted ownership or use rights
2025/06/302024/12/31
Items Type of Type of
Carrying amount Book value Status Carrying amount Book value Status
restriction restriction
Margin for
Margin for Notes Margin for Notes Margin for Notes
Notes
Cash at bank and receivable receivable receivable
1001459617.18 1001459617.18 863683251.57 863683251.57 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 67041187.99 67041187.99 Pledged Pledged 165968800.17 165968800.17 Pledged Pledged
Total 1068500805.17 1068500805.17 1029652051.74 1029652051.74
Notes to the financial statements Page 86Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(18) Short-term loans
1. Classification of short-term loans
Items 2025/06/30 2024/12/31
Credit loans 570000000.00 370000000.00
Discounted unexpired bills 201932029.09 1055490.50
Total 771932029.09 371055490.50
(19) Notes payable
Items 2025/06/30 2024/12/31
Bank acceptance bill 10612143986.30 10412029417.45
Commercial acceptance bill 1134068131.78 1559477470.97
Letter of credit 1496307842.64 1011196781.44
Total 13242519960.72 12982703669.86
(20) Accounts payable
1. Accounts payable
Items 2025/06/30 2024/12/31
Within 1 year (inclusive) 2799003363.63 2680864210.15
1-2 year (inclusive) 119630433.78 61748259.48
2-3 year (inclusive) 13489180.84 8554593.94
Over 3 years 14145836.39 10592375.79
Total 2946268814.64 2761759439.36
Note: No material accounts payable with ageing of over one year or overdue.
(21) Prepayments
Items 2025/06/30 2024/12/31
Within 1 year (inclusive) 60550.47 611.60
1-2 year (inclusive) 58715.61
2-3 year (inclusive)
Over 3 years
Notes to the financial statements Page 87Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items 2025/06/30 2024/12/31
Total 60550.47 59327.21
(22) Contract liabilities
1. Details of contract liabilities
Items 2025/06/30 2024/12/31
Payment received in advance and labor costs 2712225947.41 2894761202.08
Others 8201204.84 13837223.65
Total 2720427152.25 2908598425.73
(23) Employee benefits payable
1. Employee benefits payable
Items 2024/12/31 Increase Decrease 2025/06/30
Short-term employee
1773068.35838993043.91831185366.879580745.39
benefits
Post-employment
benefits - defined 117412488.73 117412488.73
contribution plans
Termination benefits 9178565.95 9178565.95
Other benefits due within
one year
Others
Total 1773068.35 965584098.59 957776421.55 9580745.39
2. Short-term employee benefits
Items 2024/12/31 Increase Decrease 2025/06/30
(1) Salary bonus
597838713.64597838713.64
allowance and subsidy
(2) Employee welfare 77970134.07 77970134.07
(3) Social Insurance 61623095.39 61623095.39
Including: Medical 49343055.39 49343055.39
Notes to the financial statements Page 88Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items 2024/12/31 Increase Decrease 2025/06/30
insurance and maternity
insurance
Work injury
9991880.009991880.00
insurance
Others 2288160.00 2288160.00
(4) Housing fund 73504046.00 73504046.00
(5) Union funds and staff
1773068.3520331219.5312523542.499580745.39
education fee
(6) Short-term
compensated absences
(7) Short-term profit -
sharing scheme
(8) Other short-term
7725835.287725835.28
benefits
Total 1773068.35 838993043.91 831185366.87 9580745.39
3. Defined contribution plans
Items 2024/12/31 Increase Decrease 2025/06/30
Basic pension fund 94092330.06 94092330.06
Unemployment insurance 2940640.96 2940640.96
Annuity 20379517.71 20379517.71
Total 117412488.73 117412488.73
(24) Current tax liabilities
Items 2025/06/30 2024/12/31
Value-added tax 7111335.94 10272516.44
Resource Tax 2479178.56 750000.00
Corporate income tax 9620928.92 16029179.78
City maintenance and construction tax 497793.52 540889.49
House property tax 7576279.53 7370656.33
Land use right tax 1144608.49 1088809.99
Notes to the financial statements Page 89Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items 2025/06/30 2024/12/31
Individual income tax 474740.89 2157426.95
Educational surcharges (including local
355566.80386769.92
Educational surcharges)
Others 12735295.16 15473848.93
Total 41995727.81 54070097.83
(25) Other payables
Items 2025/06/30 2024/12/31
Interest payables
Dividends payables 45054305.70 99687100.35
Other payables 2667560610.09 2255007099.66
Total 2712614915.79 2354694200.01
1. Dividends payables
Items 2025/06/30 2024/12/31
Bengang Group Co. Ltd. 45054305.70 45054305.70
Pohang Iron and Steel Co. Ltd (POSCO) 54632794.65
Total 45054305.70 99687100.35
2. Other payables
(1) Other payables disclosed by nature
Items 2025/06/30 2024/12/31
Deposit 585292.00 586292.00
Margin 174175679.53 377422555.34
Current accounts 2490502376.12 1871598040.35
Others 2297262.44 5400211.97
Total 2667560610.09 2255007099.66
(2) Significant other payables aged over one year or overdue
Notes to the financial statements Page 90Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items 2025/06/30 Reasons
The project is still in
MCC Jingcheng Engineering Technology Co. Ltd 9677280.00
progress
(26) Non-current liabilities due within one year
Items 2025/06/30 2024/12/31
Long-term loans due within one year 501112572.40 805270731.20
Including: pledge loan
Mortgage loan
Guaranteed loan
Credit loan 501112572.40 805270731.20
Bond payables due within one year 5618737269.28 106989474.64
Other long-term payables due within one
115797444.57118242710.82
year
Total 6235647286.25 1030502916.66
(27) Other current liabilities
Items 2025/06/30 2024/12/31
Output tax to be transferred 302028180.11 328981058.74
Total 302028180.11 328981058.74
(28) Long-term loans
Items 2025/06/30 2024/12/31
Pledged loans
Mortgage loan
Guaranteed loans
Credit loans 4045871647.71 3697212193.60
Subtotal 4045871647.71 3697212193.60
Less: due within one year 501112572.40 805270731.20
Total 3544759075.31 2891941462.40
Notes: At the end of the period interest rate of long-term loans ranges from 2.1%-3.28%.Notes to the financial statements Page 91Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(29) Bonds payable
1. Bonds payable disclosed by category
Items 2025/06/30 2024/12/31
Convertible Bond 5569899459.53
Total 5569899459.53
Notes to the financial statements Page 92Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
2. Changes in Bonds payables (Excluding other financial instruments such as preferred stocks and perpetual bonds classified as financial liabilities)
Share
Curr
Premium and conversion Balance at the end
Bond Balance at the end of ent Interest accrued at Repayment in Default
Items Face value Issue date Issuance amount discount and of the current
duration the previous year issu face value this period or not
amortization repurchase period
e
this year
Bengang
Convertibl
e Bond 29th June
6800000000.00 6 Years 6800000000.00 5676888934.17 106998050.00 48853809.75 213987524.64 16000.00 5618737269.28 No
(Bond 2020
code:1270
18)
Less:
amount
106989474.64 106989474.64 5618737269.28 No
due within
one year
Total 5569899459.53 106998050.00 48853809.75 106998050.00 16000.00
Notes to the financial statements Page 93Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
3. Description of corporate convertible bond:
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. From January 1 2025 to June 30 2025 an aggregate of RMB16000.00 of the convertible bonds were converted into 4048.00
common stock. Among them:
In the first quarter of 2025 the Bengang Convertible Bonds were reduced by RMB 15000.00 (150 bonds) resulting in a conversion quantity of 3795.00
shares at a conversion price of RMB3.95 yuan per share; in the second quarter of 2025 the Bengang Convertible Bonds reduced by RMB 1000.00 yuan (10
bonds) resulting in a conversion quantity of 253.00 shares at a conversion price of RMB3.95 yuan per share.Notes to the financial statements Page 94Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(30) Lease liabilities
Items 2025/06/30 2024/12/31
Lease payments 2488754144.09 2539395930.63
Less: Unrealized financing expenses 757129293.69 787241633.30
Reclassified to non-current liabilities
115797444.57118242710.82
within one year
Total 1615827405.83 1633911586.51
(31) Deferred income
Items 2024/12/31 Increase Decrease 2025/06/30 Reason
Government
173919087.4746963000.0031376315.25189505772.22
subsidy
Total 173919087.47 46963000.00 31376315.25 189505772.22
Notes to the financial statements Page 95Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
The details of government subsidy projects are as follows:
Transfer to Related to
Transfer to OffsettingItems 2024/12/31 Increase non-operating cost or
Other assets or
other income
income expenses
changes 2025/06/30
income
Desulfurization and Denitrification
Project of Coal-fired Boiler in 1200000.00 300000.00 900000.00
High-pressure Workshop of Bengang Assets
Power Plant
Advanced Treatment Project of Carbon
Fiber Wastewater in Dongfeng Plant Area 1900000.00 950000.00 950000.00 Assets
of Plate Coking Plant
Second Sintering Finishing Dust
Removal Ultra-low Emission 410000.00 205000.00 205000.00 Assets
Reconstruction Project
Converter Gas Recovery Efficiency
Improvement Project for Plate Material 7260000.00 1210000.00 6050000.00 Assets
Area
Central environmental protection award
fund 63264000.00 10544000.00 52720000.00 Assets
2021 Intellectual Manufacturing Strong
Province Special Fund 2880000.00 480000.00 2400000.00 Assets
2020 Ecological Civilization
Construction Special Project (Special 16000000.00 2000000.00 14000000.00 Assets
Steel Electric Furnace Upgrading Project)
2021 Manufacturing Strong Province
Special Fund Project 6480000.00 810000.00 5670000.00 Assets
Bengang Automotive Sheet Engineering
Laboratory Construction Project 745133.80 228047.25 517086.55 Assets
Notes to the financial statements Page 96Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Transfer to Related to
Offsetting
Items 2024/12/31 Increase non-operating
Transfer to Other assets or
other income cost or
income expenses
changes 2025/06/30
income
Xingliao Talent Program Government
Grant 190000.00 190000.00 Income
2021 Benxi City Expert-Enterprise
Collaboration Program 5000.00 5000.00 Income
2022 Liaoning Provincial Natural
Science Foundation Program Funds
(Provincial Department of Science and 28400.00 28400.00 Income
Technology)
Design of Rare Earth Steel Metallurgical
Slag System and Research on Its 302173.50 302173.50 Income
Physicochemical Properties
2021 Municipal Skilled Master
Workstation Fee 20764.57 20764.57 Income
Study on the Mechanism and Control of
the Effect of Rare Earth Oxysulfides on 52020.20 52020.20 Income
the Plasticizability of Automotive Steel
2019 Municipal Master Skill Workstation
Fee 69500.19 69500.19 Income
2018 Municipal Master Skill Workstation
Fee 58766.34 58766.34 Income
Liaoning Province "Hundred Thousand
Thousand Thousand Talents Project" 220000.00 220000.00 Income
funding project in 2018
Notes to the financial statements Page 97Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Transfer to Related to
Offsetting
Items 2024/12/31 Increase non-operating
Transfer to cost or Other assets orother income
income expenses
changes 2025/06/30
income
Provincial Science and Technology
Department National Natural Science 334000.00 334000.00 Income
Foundation Committee
2019 Provincial Skilled Master
Workstation Fee 100000.00 100000.00 Income
2020 Provincial-level Skill Master
Workstation Expenditure 36200.84 36200.84 Income
Fundamental Research on New
Technology of Composite Iron Coke Low 168000.00 168000.00 Income
Carbon Ironmaking Furnace Charge
The Second Batch of 2021 Liaoning
Funds on Central Government Guiding
the Development of Local Science and 300000.00 300000.00 Income
Technology
2022 Digital Liaoning Intellectual
Manufacturing Strong Province 300000.00 300000.00 Income
Municipal Enterprise Operation Class
Patent Navigation Project Funding Grant 200000.00 200000.00 Income
Notes to the financial statements Page 98Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Transfer to Related to
Transfer to OffsettingItems 2024/12/31 Increase non-operating other income cost or
Other
expenses changes 2025/06/30
assets or
income income
Genetic Engineering and Artificial
Intelligence Design of Aviation Critical 376000.00 376000.00 Income
Materials (Research Institute)
2022 Annual Provincial Skill Master
Workshop Program 32256.03 20225.43 12030.60 Income
Government Grants Received by Steel
Products R&D Institute 525000.00 525000.00 Income
Steel Plant Blast Furnace #5 Group & 4B
Coke Oven Flue Gas 16368000.00 2046000.00 14322000.00 Assets
Desulfurization/Denitrification Project
Converter Roof Hood Tertiary Dust
Removal Upgrade (BF #4/5/6 11688000.00 1461000.00 10227000.00 Assets
Steelmaking Plant)
Hot Metal Pretreatment Station Dust
Control Retrofit (Converter Plant) 7730400.00 966300.00 6764100.00 Assets
Hot Blast Stove
Desulfurization-Denitrification System 15267000.00 15267000.00 Assets
Installation (Ironmaking Complex)
Notes to the financial statements Page 99Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Transfer to Related to
Transfer to OffsettingItems Other2024/12/31 Increase non-operating assets orother income cost or
income expenses
changes 2025/06/30
income
2024 Manufacturing Talent Development
Support Initiative 250000.00 250000.00 Income
R&D on RE-Alloyed High-Strength
Fatigue-Resistant Wheel Steel 111000.00 111000.00 Income
Ultra-low Emission Projects for Mill Raw
Material and Steelmaking Operations 18680000.00 18680000.00 Assets
Desulfurization & Denitrification Project
for Blast Furnace Hot Stoves - 27653000.00 27653000.00 Assets
Ironmaking Plant
Land subsidy for Hengda Logistics Park 19047472.00 9504978.00 9542494.00 Assets
Government Financial Support Funds 630000.00 630000.00 Income
Total 173919087.47 46963000.00 31376315.25 189505772.22
Notes to the financial statements Page 100Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(32) Share capital
Increase/decrease (+ - )
Items 2024/12/31 Issuingof new Bonus
Transferred 2025/06/30
share shares
from Others Subtotal
reserves
Total
shares 4108228157.00 4048.00 4048.00 4108232205.00
Note: The increase was due to the convertible bonds issued by the Company were converted
into 4048.00 shares of common stock during the current period and the remaining balance of
the face value of the Company's convertible bonds as of June 30 2025 was
RMB5630969100.00 Yuan (56309691.00 bonds). For details please refer to Note 5. (29)
Bonds payable.Notes to the financial statements Page 101Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(33) Other equity instruments
Changes in financial instruments such as preferred stocks and perpetual bonds issued at the end of the period
2024/12/31 Increase Decrease 2025/06/30
Items
Number Book value Number Book value Number Book value Number Book value
Convertible corporate
56309851.00947850195.03160.003257.1056309691.00947846937.93
bonds
Total 56309851.00 947850195.03 160.00 3257.10 56309691.00 947846937.93
Notes: The decrease during the current period was due to convertible bonds issued by the Company have been partially converted into common stock for an
aggregate of RMB16000.00 (160 bonds) and the remaining balance of the face value of the convertible bonds as of June 30 2025 was RMB5630969100.00
Yuan (56309691.00 bonds). For details please refer to Note 5. (29) Bonds payable.Notes to the financial statements Page 102Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(34) Capital reserves
Items 2024/12/31 Increase Decrease 2025/06/30
a) Capital (share)
13225632166.9511835.2613225644002.21
premium
b) Other capital
reserves
Including: Other
equity changes in
investees
Unexercised
share-based payment
Others
c) Transfer of capital
reserve under the
original system
Total 13225632166.95 11835.26 13225644002.21
Notes:
1. The increase was due to the conversion of A-share convertible bonds issued by the
Company into A-share common stock during the current period as described in Note 5
(29) Bonds payable.
Notes to the financial statements Page 103Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(35) Other comprehensive income
Current period
Less: amount
recognized in Income after Income after
Amounts
OCI in the tax tax attributable Less: transfer
Items 2024/12/31 before 2025/06/30
previous period Less: income tax attributable to to to retain
corporate
transfer to PL owners of the non-controlling earnings
income tax
in current Company interests
period
1． Items cannot be reclassified
-93407196.62-93407196.62
into profit or loss.including: Changes in fair value
of investments in other equity
instruments
Other comprehensive
income under the equity method
cannot be reclassified into profit
or loss
Changes in fair value of -93407196.62 -93407196.62
Notes to the financial statements Page 104Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Current period
Less: amount
recognized in Income after Income after
Amounts
OCI in the tax tax attributable Less: transfer
Items 2024/12/31 before 2025/06/30
previous period Less: income tax attributable to to to retain
corporate
transfer to PL owners of the non-controlling earnings
income tax
in current Company interests
period
investments in other equity
instruments
Changes in fair value of
company's credit risk
Other
2．Items can be reclassified into
profit or loss
Total -93407196.62 -93407196.62
Notes to the financial statements Page 105Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(36) Special Reserves
Items 2024/12/31 Increase Decrease 2025/06/30
Safety production
809649.6532080601.7016712548.9116177702.44
fee
Total 809649.65 32080601.70 16712548.91 16177702.44
(37) Surplus Reserves
Items 2024/12/31 Increase Decrease 2025/06/30
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
-7497011632.90-2414685928.92
year-end
Adjustments of the beginning distributed profits
(increase + / decease -)
After adjustments: undistributed profit at this
-7497011632.90-2414685928.92
year-beginning
Add: undistributed profit belonging to parent
-1399277780.90-5037271398.28
company
Less: Statutory surplus reserves
Discretionary reserves
General risk reserves
Common shares dividend payable 45054305.70
Common shares dividend transferred to paid-in
capital
Ending balance of undistributed profits -8896289413.80 -7497011632.90
(39) Operating income and operating cost
Notes to the financial statements Page 106Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
1. Operating income and operating cost
Current period Previous period
Items
Revenue Cost Revenue Cost
Principal
24299027360.1725043467684.0227944182578.6128733996982.52
business
Other
398773061.82397749564.90422669309.38434178194.37
business
Total 24697800421.99 25441217248.92 28366851887.99 29168175176.89
2. Details about operating income and operating cost
Current period Current period
Item Principal business Principal business Other business Other business
Revenue Cost Revenue Cost
Classification by the time
of commodity transfer
Including: recognize at a 24299027360.17 25043467684.02 397670178.84 397742017.02
point in time
-Recognize
over a certain period of 1102882.98 7547.88
time
Total 24299027360.17 25043467684.02 398773061.82 397749564.90
Classification by business
area
Including：Domestic 20038403948.40 20723589764.37 398773061.82 397749564.90
Abroad 4260623411.77 4319877919.65
Total 24299027360.17 25043467684.02 398773061.82 397749564.90
(40) Tax and surcharges
Items Current period Previous period
Environmental tax 7348645.97 10657195.93
City maintenance and construction tax 3841954.40 7179465.72
Notes to the financial statements Page 107Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items Current period Previous period
Educational surcharge 2814781.46 5141768.24
Resource Tax 5057602.56
Housing property tax 45022445.17 42749298.60
Land use right tax 7107861.82 7609446.76
Vehicle and vessel tax 10711.44 26361.04
Stamp duty 36809947.61 33103641.89
Others 8373.04 14110.89
Total 108022323.47 106481289.07
Note: The "Implementation Measures for the Pilot Water Resources Tax Reform" (Cai Shui [2024] No.
28) specifies that the pilot program of replacing water resource fees with taxes will be fully implemented
starting 1 December 2024 with tax returns and payments required on a quarterly basis. According to the
requirements in the appendix to the "Implementation Plan for the Pilot Reform of Water Resources Tax
in Liaoning Province" (Liao Cai Shui [2024] No. 320) the Company will apply RMB 0.4 per cubic
meter and RMB 1.2 per cubic meter respectively resulting in an increase of RMB 5057602.56 in the
current period.
(41) Selling and distribution expenses
Items Current period Previous period
Import and export agency fee 1132435.68 1016910.24
Salary and benefits 28922500.81 36058846.27
Storage and warehousing fee 21286926.75 26379873.76
Others 10122303.29 8521429.64
Total 61464166.53 71977059.91
(42) General and administrative expenses
Items Current period Previous period
Salary and benefits 193863629.66 228973811.09
Insurance fee 11836395.97 12068301.43
Depreciation 31277381.76 25703238.52
Repair expense 629075.86 3893853.72
Agency Fees 4108796.48 10565726.99
Notes to the financial statements Page 108Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items Current period Previous period
Information System Service Fees 12135901.47 21186116.66
Safety Production Fees 13329362.22 13231852.96
Others 18584353.01 44281797.59
Total 285764896.43 359904698.96
(43) Research and development expenses
Items Current period Previous period
Depreciation materials and
31617334.2736966260.63
compensation etc.Total 31617334.27 36966260.63
(44) Financial expenses
Items Current period Previous period
Interest expenses 207308249.73 192939391.68
including: Interest expenses for lease
30112339.6127576079.44
liabilities
Less: Interest income 17521734.29 20070259.17
Exchange gains or losses 12771216.88 -43562831.57
Others 5783222.76 5419742.93
Total 208340955.08 134726043.87
(45) Other income
Items Current period Previous period
Withholding fee income 221525.38 401726.29
VAT tax relief 30018663.56 24007324.56
Tax refund 47395742.50 43795569.52
Desulfurization and Denitrification Project of Coal-fired
Boiler in High-pressure Workshop of Bengang Power 300000.00 300000.00
Plant
Advanced Treatment Project of Carbon Fiber Wastewater 950000.00 950000.00
Notes to the financial statements Page 109Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items Current period Previous period
in Dongfeng Plant Area of Plate Coking Plant
Second Sintering Finishing Dust Removal Ultra-low
205000.00205000.00
Emission Reconstruction Project
Plate factory area converter Gas Recovery and Efficiency
1210000.001210000.00
Improvement Project
Central Government Environmental Protection Award
10544000.0010544000.00
Fund
2021 Intellectual Manufacturing Strong Province Special
870000.00480000.00
Fund
2020 Ecological Civilization Construction Special
2000000.00
Project (Special Steel EAF Upgrading Project)
2021 Intellectual Manufacturing Strong Province Special
420000.00390000.00
Fund
Benxi Steel Automotive Sheet Engineering Laboratory
228047.25
Construction Project
2021 Municipal-Level Skills Master Workstation Fee 40990.00
Flue Gas Desulfurization and Denitrification Project for
No.5 Furnace Group & 4B Coke Oven at Plate 2046000.00
Ironmaking Plant
Triple Dust Removal Retrofit for Roof Hoods of
1461000.00
No.4/5/6 Converters at Plate Steelmaking Plant
Dust Removal Retrofit for Hot Metal Pretreatment
966300.00
Station of Steelmaking Converters
Development of Gen-3 AHSS for Vehicles 290000.00
Government Tax Rebates for Low-Growth Enterprises 724200.00
Special Incentive Funds for Business Stable development
785500.00
Measures
Hengda Logistics Park Land Subsidy 9504978.00 6636652.00
Fiscal Support Funds 630000.00
Total 109012246.69 90719972.37
(46) Investment income
Notes to the financial statements Page 110Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items Current period Previous period
Income on long-term equity investment by equity method
Income on long-term equity investment by cost method
Income on disposal of long-term equity investment
Gain from debt restructuring 7215.64
Others -17639062.95 -31605308.28
Total -17631847.31 -31605308.28
(47) Credit impairment loss
Items Current period Previous period
Loss from bad debts of account receivable 17800262.33 -18084169.13
Loss from bad debts of other receivables -8492152.37 1919709.67
Total 9308109.96 -16164459.46
(48) Asset impairment loss
Items Current period Previous period
Inventory and contract fulfillment cost
-36671170.6014313228.28
impairment loss
Total -36671170.60 14313228.28
(49) Assets disposal gains
The amount recognized in
Items Current period Previous period
non-recurring profit
Fixed assets 3008.85 10002955.91 3008.85
Total 3008.85 10002955.91 3008.85
(50) Non-operating income
The amount
Items Current period Previous period recognized in
non-recurring profit
Notes to the financial statements Page 111Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
The amount
Items Current period Previous period recognized in
non-recurring profit
Non-current assets scrapped gains 524024.60 2969609.64 524024.60
Donation
Government grants unrelated to
operational activities
Compensation for breach of
6638865.702257723.466638865.70
contract
Unable to pay (debt settlement
100.02100.02
income)
Inventory Surplus Gains
Others 2560778.89 3754417.72 2560778.89
Total 9723769.21 8981750.82 9723769.21
(51) Non-operating expense
The amount
Items Current period Previous period recognized in
non-recurring profit
Non-current assets scrapped loss 32063940.47 26684793.03 32063940.47
Donation
Administrative Fines and Late
43.9481657.8543.94
Fees
Compensation liquidated
248751.31819442.12248751.31
damages and fines
Others 4210630.39 71951.36 4210630.39
Total 36523366.11 27657844.36 36523366.11
(52) Income tax expenses
1. Income tax expense
Items Current period Previous period
Income tax payable for the current year 19759519.10 40364805.44
Notes to the financial statements Page 112Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items Current period Previous period
Deferred income tax 216509.20 -2905865.78
Total 19976028.30 37458939.66
2. Accounting profit and income tax expense adjustment process
Items Current period
Total profit -1346679630.74
Income tax expense calculated according to the official or applicable tax
-182670239.06
rate
Effect of different tax rates applied by subsidiaries 5859548.03
Effect of adjustment of the income tax expense of prior period -13058799.81
Effect of non-taxable income 93845.69
Effect of undeductible costs expenses or losses -20423025.40
Effect of use of deductible losses of unrecognized deferred tax asset of
-1990339.80
prior period
Effect of deductible temporary differences or deductible losses of
238016466.19
unrecognized deferred tax assets of current period
Effect of tax rate changes on the opening balance of deferred tax
assets/liabilities
Others -5851427.54
Income tax expenses 19976028.30
(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
52500806.6842591304.64
payment on behalf
Interest income 18463234.45 19586079.70
Special subsidy income 47191156.54 10775771.68
Non-operating income 2920912.19 3960212.67
Others 1097069.28 2522136.10
Notes to the financial statements Page 113Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items Current period Previous period
Total 122173179.14 79435504.79
（2）Cash paid related to other operating activities
Items Current period Previous period
Current accounts 80902412.69 67015177.96
Administrative expenses 40868520.89 46903144.20
Selling expenses 2753734.36 8837487.92
Charges 18292702.08 32800975.46
Others 15925186.78 17743797.28
Total 158742556.80 173300582.82
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 1815330484.81 1841743458.53
Withdrawal of term deposit
Recovery of short-term borrowing funds for
designated payments
Total 1815330484.81 1841743458.53
（2）Other cash paid in relation to financing activities
Item Current period Previous period
Notes letter of guarantee and letter of credit
margins 1953106850.42 1641919092.82
Lease payments 3767304.90 31137341.92
Short-term borrowing funds for designated
4977735.814378074.03
payments
Total 1961851891.13 1677434508.77
(54) Supplementary details of statement of cash flows
1. Supplementary details for statement of cash flows
Notes to the financial statements Page 114Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items Current period Previous period
1. A reconciliation of net profit to cash flows from
operating activities:
Net profit -1366655659.04 -1496544823.36
Add: Credit impairment loss 9308109.96 -16164459.46
Asset impairment loss -36671170.60 14313228.28
Depreciation of fixed assets 825835405.32 832107573.45
Depletion of oil and gas assets
Depreciation of right of use assets 39442062.84 33231654.57
Amortization of intangible assets 5572497.38 4543448.63
Long-term deferred expenses
Losses proceeds from disposal of PPE intangible assets
-3008.85-10002955.91
and other long-term assets (Earnings marked“－”)
Scrapped losses from fixed assets (Earnings
31539915.8723715183.39
marked“－”)
Losses in fair value change (Earnings marked“－”)
Financial expenses (Earnings marked“－”) 220079466.61 149376560.11
Investment losses (Earnings marked“－”) 17631847.31 31605308.28
Deferred tax assets reduction (Addition marked“－”) 6132818.62 -64667690.46
Deferred tax liabilities increased (Reduction
-5916309.4261761824.68
marked“－”)
Reduction of inventory (Addition marked“－”) 319818265.50 -182101204.14
Operating receivable items reduction (Addition
-551119293.48506901128.60
marked“－”)
Operating payable items increase (Less marked"－") 841266763.23 1189615665.97
Others 15368052.79 3125247.77
Net cash flows generated from operating activities 371629764.04 1080815690.40
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:
Notes to the financial statements Page 115Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items Current period Previous period
Ending balance of cash 1118512027.55 1182645195.35
Less: Beginning balance of cash 1590205218.91 1199685408.38
Add: Ending balance of cash equivalents
Less: Opening balance of cash equivalents
The net increase in cash and cash equivalents -471693191.36 -17040213.03
2. The structure of cash and cash equivalents
Items Current period Previous period
1. Cash 1118512027.55 1590205218.91
Including: Cash on hand
Digital cash available on demand
Bank deposits available on demand 1118512027.55 1590205218.91
2. Ending balance of cash and cash equivalents 1118512027.55 1590205218.91
Including: Cash and cash equivalents limited to use by
the parent company of other subsidiary in
the group
(55) Foreign currency monetary items
1. Foreign currency monetary items
Ending balance in Ending balance translated
Item Exchange rate
foreign currency to RMB
Cash and cash equivalents 875365279.59
Including: USD 122281630.43 7.1586 875365279.59
EUR
HKD
Non-current liabilities due
1149529.60
within one year
Including: USD
JPY 23176000.00 0.0496 1149529.60
Long-term loans 1724294.40
Notes to the financial statements Page 116Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Ending balance in Ending balance translated
Item Exchange rate
foreign currency to RMB
Including: USD
JPY 34764000.00 0.0496 1724294.40
6. Changes in the Scope of Consolidation
(1) Changes in the Scope of Consolidation Due to Other Reasons
On April 9 2025 the Company newly established Green Gold (Benxi) Renewable Resources Co.Ltd. and the Company holds 51.00% of the shares of the newly established company.
7. Equity in other entities
(1) Equity in subsidiaries
1. Constitution of enterprise group
Name of Registered Shareholding
the capital (in
Principal
place of Registration Nature of ratio (%) Acquisition
subsidiary 10 business place business methodthousand) Direct Indirect
Guangzhou
Bengang
Steel &
Iron 20000 Guangzhou Guangzhou Sales 100 Establishment
Trading
Co. Ltd
Shanghai
Bengang
Metallurgy
Science 23000 Shanghai Shanghai Sales 100 Establishment
and
Technology
Co. Ltd
Dalian
Benruitong
Automobile
Material 10000 Dalian Dalian Manufacturing 65 Establishment
Technology
Co. Ltd
Bengang Business
POSCO combination
Cold-rolled 192000 Benxi Benxi Manufacturing 75 under
Sheet Co. common
Ltd. control
Changchun
Bengang Business
Steel & combination
Iron 3000 Changchun Changchun Sales 100 under
Trading common
Co. Ltd. control
Yantai Business
Bengang combination
Steel Sales 20000 Yantai Yantai Sales 100 under
Co. Ltd. commoncontrol
Notes to the financial statements Page 117Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Name of Registered Principal Shareholding
the capital (in Registration Nature of ratio (%) Acquisition
subsidiary 10
place of
thousand) business
place business
Direct Indirect method
Tianjin Business
Bengang combination
Steel 20000 Tianjin Tianjin Sales 100 under
Trading common
Co. Ltd. control
Benxi
Bengang
Steel & 3000 Benxi Benxi Sales 100 Establishment
Iron Sales
Co. Ltd.Shenyang
Bengang
Metallurgy
Science 20000 Shenyang Shenyang Sales 100 Establishment
and
Technology
Co. Ltd.Northern Business
Hengda combination
Logistics 15000 Benxi Benxi Manufacturing 100 under
Co. Ltd. commoncontrol
Lujin
(Benxi)
Renewable 6000 Benxi Benxi Manufacturing 51 EstablishmentResources
Co. Ltd.
2. Significant but not wholly-owned subsidiaries
Profits and losses DividendProportion of attributing to declared to
Ending
Name of the subsidiaries non-controlling balance of
interests non-controlling
distribute to
shareholders non-controlling
non-controlling
shareholders interests
Bengang Posco Cold-rolled
Sheet Co. Ltd. 25.00% 29428186.14 626799233.47
Notes to the financial statements Page 118Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
3. Financial information of significant but not wholly-owned subsidiaries
Name of 30 June 2025 31 December 2024
the Current Non-current Current Non-current Total Current Non-current Current Non-current Total
subsidiaries assets assets Total assets liabilities liabilities liabilities assets assets Total assets liabilities liabilities liabilities
Bengang
Posco
Cold-rolled 5527703148.51 994714125.07 6522417273.58 4015220339.71 4015220339.71 6390756526.72 986052997.62 7376809524.34 4990053412.86 4990053412.86
Sheet Co.Ltd.Current period Previous period
Name of the
Operating Total Net cash flows Total Net cash flowssubsidiaries
income Net profit comprehensive from operating
Operating
income Net profit comprehensive from operatingincome activities income activities
Bengang Posco
Cold-rolled Sheet Co. 3498792976.94 117712744.55 117712744.55 -206369040.92 4625594944.57 175927445.95 175927445.95 321389844.86
Ltd.Notes to the financial statements Page 119Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(2) Interests in Joint Arrangements or Associates
1. Significant Joint Ventures or Associates
The company has no significant joint ventures or associates.
8. Government grants
(1) Types Amounts and Presentation of Government Grants
1. Government Grants Recognized in Profit or Loss for the Current Period
Accounting subjects Current period Previous period
Other income 78772057.75 66310921.52
Notes to the financial statements Page 120Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
2. Liabilities relating to government grants
Amounts Amounts Amountsrecognized in Offset costs
31 December non-operating recognized in
derecognized or expenses
Item 2024 Addition income during other income
in other
expense during the 30 June 2025 Related to assets/income
the current during the current
period current period
during the
current period period
Deferred
income 173919087.47 46963000.00 31376315.25 189505772.22 Assets/income
Notes to the financial statements Page 121Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
9. Risks associated with financial instruments
(1) Various types of risks arising from financial instruments
The Company's principal financial instruments include other equity instruments investments
borrowings receivables payables etc. A detailed description of each financial instrument is
set out in note VI. The risks associated with these financial instruments and the risk
management policies adopted by the Company to mitigate these risks are described below. The
Company's management manages and monitors these exposures to ensure that these risks are
contained within defined limits.The objective of the Company's risk management is to strike an appropriate balance between
risk and return minimize the negative impact of risk on the Company's operating results and
maximize the benefits of shareholders and other equity investors. Based on this risk
management objective the Company's basic risk management strategy is to determine and
analyze the various risks faced by the company establish an appropriate risk tolerance bottom
line and risk management and timely and reliable supervision of various risks to control the
risks within the limited scope.
1. Credit risk
As of June 30 2025 the company’s maximum exposure to credit risk which could result in
financial loss mainly arises from the failure of counterparties to fulfill their obligations under
contracts leading to losses on the company’s financial assets. This specifically includes the
carrying amounts of financial assets recognized in the consolidated balance sheet. For financial
instruments measured at fair value the carrying amount reflects their risk exposure but does
not represent the maximum exposure as the maximum exposure will change with future fair
value fluctuations.To mitigate credit risk the company has established a dedicated department to determine credit
limits conduct credit approvals and implement other monitoring procedures to ensure that
necessary measures are taken to recover overdue receivables. In addition the company
reviews the collectability of each individual receivable at each balance sheet date to ensure
that adequate provisions for doubtful debts are made for amounts that are unrecoverable.Therefore the management believes that the credit risk faced by the company has been
substantially reduced.The company’s cash and cash equivalents are deposited with financial institutions with high
credit ratings and therefore the credit risk of the company’s cash is low.Notes to the financial statements Page 122Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
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 manages liquidity risk by ensuring that it has sufficient
liquidity to meet its obligations as they mature without causing unacceptable losses or
damaging the reputation of the business. The Company regularly analyzes the structure and
maturity of its liabilities to ensure that it has sufficient funds. The Company's management
monitors the use of bank borrowings and ensures compliance with loan agreements. It also
negotiates financing with financial institutions to maintain a certain credit line and reduce
liquidity risk.Notes to the financial statements Page 123Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
The company’s financial liabilities are presented by maturity based on the undiscounted contractual cash flows as follows:
30 June 2025
Item Payableon Within 1 Year 1–2 Years 2–5 Years Over 5 Years Total UndiscountedContractual Amount Carrying Amountdemand
Short-term
borrowings 771932029.09 771932029.09 771932029.09
Notes payable 13242519960.72 13242519960.72 13242519960.72
Accounts
payable 2799003363.63 119630433.78 27635017.23 2946268814.64 2946268814.64
Other payables 2025216081.67 336149690.60 351249143.52 2712614915.79 2712614915.79
Long-term
borrowings
(including those 501112572.40 920699529.60 2624059545.71 4045871647.71 4045871647.71
due within one
year)
Lease liabilities
(including those
due within one 115797444.57 123826116.47 758085723.57 733915565.79 1731624850.40 1731624850.40
year)
Bonds payable
(including those
due within one 5618737269.28 5618737269.28 5618737269.28
year)
Total 25074318721.36 1500305770.45 3761029430.03 733915565.79 31069569487.63 31069569487.63
31 December 2024
Item Payable on
demand Within 1 Year 1–2 Years 2–5 Years Over 5 Years
Total Undiscounted
Contractual Amount Carrying Amount
Short-term
borrowings 371055490.50 371055490.50 371055490.50
Notes
payable 12982703669.86 12982703669.86 12982703669.86
Accounts
payable 2680864210.15 61748259.48 19146969.73 2761759439.36 2761759439.36
Notes to the financial statements Page 124Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
31 December 2024
Item Payable on
demand Within 1 Year 1–2 Years 2–5 Years Over 5 Years
Total Undiscounted
Contractual Amount Carrying Amount
Other
payables 1703827958.01 394969845.27 255896396.73 2354694200.01 2354694200.01
Long-term
borrowings
(including
those due 805270731.20 922270731.20 1969670731.20 3697212193.60 3697212193.60
within one
year)
Lease
liabilities
(including
those due 118242710.82 109583860.29 782383488.53 741944237.69 1752154297.33 1752154297.33
within one
year)
Bonds
payable
(including
those due 106989474.64 5569899459.53 5676888934.17 5676888934.17
within one
year)
Total 18768954245.18 7058472155.77 3027097586.19 741944237.69 29596468224.83 29596468224.83
Notes to the financial statements Page 125Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
3. Market risk
Market risk of financial instruments refers to the risk that the fair value or future cash
flows of financial instruments will 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 is the risk that the fair value or future cash flows of a financial instrument
will fluctuate due to changes in market interest rates.The interest rate risk faced by the Company mainly arises from floating interest rate bank
deposits and floating interest rate loans which expose the Company to cash flow interest
rate risk. The Company has not yet established a policy to manage its interest rate risk but
management will carefully choose financing methods a combination of fixed and floating
interest rates and a combination of short-term debt and long-term debt. Using effective
interest rate risk management methods the Company will closely monitor interest rate risk
control the amount of floating rate borrowings and use interest rate swaps when necessary
to achieve the desired interest rate structure.
(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 Company's exposure to exchange rate risk is mainly related to US dollars Hong Kong
dollars Japanese yen and euros. Except for the Company's purchase of a small amount of
raw materials and sales of finished products which are settled in US dollars Hong Kong
dollars Japanese yen and euros the Company's other major business activities are settled
in RMB. As at June 30 2025 the assets or liabilities described in the following table were
all balances in US dollars Hong Kong dollars Japanese yen and Euros:
Item 30 June 2025 31 December 2024
Cash and Cash Equivalents – USD 122281630.43 45384220.89
Cash and Cash Equivalents – HKD 207.73
Non-current Liabilities Due Within One Year –
JPY 23176000.00 23176000.00
Long-term Borrowings – JPY 34764000.00 46352000.00
(2) Transfer of Financial Assets
1. Status of Financial Asset Transfers:
Transferred Financial Asset Basis for
Method of Financial Derecognition
Derecognition
Asset Transfer Nature Amount Status Assessment
Notes to the financial statements Page 126Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Transferred Financial Asset Basis for
Method of Financial Derecognition
Derecognition
Asset Transfer Nature Amount Status Assessment
Retains
substantially all
Endorsement/Discount of Notes Not
311741833.24 risks and rewards
Notes Receivable derecognized
including the
related credit risk
Substantially all
Accounts
Endorsement/Discount of risks and rewards
Receivable 4517795874.04 Derecognized
Notes have been
Financing
transferred
Total 4829537707.28
Explanation of the Basis for Derecognition Assessment: As of June 30 2025 the maturity
of receivables financing ranges from 1 to 12 months. According to the relevant provisions
of the Negotiable Instruments Law if the accepting bank refuses payment the holder of
the bill has the right to claim against the company. The company believes that it has
transferred substantially all the risks and rewards of these receivables. Therefore the
company fully derecognizes the receivables and the related settled accounts payable and
recognizes the discounting expense.
2. Financial Assets Derecognized Due to Transfer:
Gains or Losses
Items Method of Financial AssetTransfer Amount Derecognized Related toDerecognition
Accounts
Receivable Endorsement/Discount of 4517795874.04 17376933.79
Financing Notes
Total 4517795874.04 17376933.79
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
Notes to the financial statements Page 127Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Fair value at the end of the period
Items First level fair Second level Third level fairvalue fair value value Total
measurement measurement measurement
1. Continuous fair value
measurement
Accounts receivable financing 5552656.65 5552656.65
Other equity instrument
investments 933426254.63 933426254.63
11. Related party transactions
(1) Details of parent company
Share
Place of Notes of Registered Voting
Name of parent company
Registry Business capital
proportion
rights (%)
(%)
Benxi Steel & Iron (Group) Benxi
Manufacturing 8.00 billion 58.65 58.65
Co. Ltd. Liaoning
The ultimate controlling party of the Company is：Ansteel Group Co. Ltd.
(2) Details of the subsidiaries
For details of subsidiaries of the Company please refer to Note 7 “Equity in other entities”.
（3） The company's joint ventures and associatesFor details of joint ventures and associates of the Company please refer to Note 7 “Equity inother 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 ventures and associates Relationship
Shenyang Xiangyu New Materials Technology Co. Ltd. Associate
（4） Details of other related parties
Name of Other related parties Relationship
Bengang Group Co. Ltd. Controlling shareholder of the parentcompany
Bengang Stainless Steel Cold Rolling Dandong Co. Ltd. The same parent company
Benxi Iron and Steel (Group) Real Estate Development Co.Ltd. The same parent company
Benxi Iron and Steel (Group) Engineering Construction
Supervision Co. Ltd. The same parent company
Benxi Iron and Steel (Group) Machinery Manufacturing Co. The same parent company
Notes to the financial statements Page 128Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Name of Other related parties Relationship
Ltd.Benxi Iron and Steel (Group) Construction Co. Ltd. The same parent company
Benxi Iron and Steel (Group) Mining Co. Ltd. The same parent company
Benxi Iron and Steel (Group) Thermal Power Development
Co. Ltd. The same parent company
Benxi Steel Group Equipment Engineering Co. Ltd. The same parent company
Benxi Steel Group Industrial Development Co. Ltd. The same parent company
Benxi Steel Group Information Automation Co. Ltd. The same parent company
Benxi Steel Group Metallurgical Slag Co. Ltd. The same parent company
Benxi Iron and Steel (Group) Mining Yanjia Valley
Limestone Mine Co. Ltd. The same parent company
Benxi Steel Group Mining Liaoyang Ma'erling Pelletizing
Co. Ltd. The same parent company
Benxi Steel Group Mining Liaoyang Jiajiaopu Iron Mine
Co. Ltd. The same parent company
Benxi Iron and Steel (Group) Mining Mineral Resources
Development Co. Ltd. The same parent company
Benxi Iron and Steel (Group) Mining Construction
Engineering Co. Ltd. The same parent company
Benxi New Industrial Development Co. Ltd. The same parent company
Dalian Bolore Steel Pipe Co. Ltd. The same parent company
Liaoning Hengtai Heavy Machinery Co. Ltd. The same parent company
Liaoning Metallurgical Technician College The same parent company
Liaoning Metallurgical Vocational Technical College The same parent company
Bengang Electrical Co. Ltd. Associate of the parent company
Bengang Group International Economic and Trade Co. Ltd. Belong to Bengang Group
Benxi Beiying Iron and Steel (Group) Co. Ltd. Belong to Bengang Group
Liaoning Hengyi Steel Trading Co. Ltd Belong to Bengang Group
Angang Electrical Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Scrap Resources (Anshan) Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Steel Processing & Distribution (Dalian) Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Steel Processing & Distribution (Changchun) Co. Belong to Ansteel Group Co. Ltd.Ltd.Angang Steel Distribution (Hefei) Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Steel Distribution (Wuhan) Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Steel Rope Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Steel Company Limited Belong to Ansteel Group Co. Ltd.Angang Chemical Technology Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Group International Economic & Trade Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Group Mining Gongchangling Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Group Automation Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Construction Group Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Metal Structure Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Mining Machinery Manufacturing Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Green Resources Technology Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Energy Technology Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Industrial Group (Anshan) Equipment Operation & Belong to Ansteel Group Co. Ltd.Maintenance Co. Ltd.Angang Industrial Group Metallurgical Machinery Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Heavy Machinery Design & Research Institute Co. Belong to Ansteel Group Co. Ltd.Ltd.Angang Heavy Machinery Co. Ltd. Belong to Ansteel Group Co. Ltd.Delin Industrial Products Co. Ltd Belong to Ansteel Group Co. Ltd.Delin Land Port Supply Chain Services Co. Ltd Belong to Ansteel Group Co. Ltd.Guangzhou Ansteel Steel Processing Co. Ltd. Belong to Ansteel Group Co. Ltd.Tianjin Angang Steel Processing & Distribution Co. Ltd. Belong to Ansteel Group Co. Ltd.Changchun FAW Angang Steel Processing & Distribution Belong to Ansteel Group Co. Ltd.Co. Ltd.Angang Group Engineering Technology Co. Ltd. Belong to Ansteel Group Co. Ltd.
（5） Related Party Transactions
Notes to the financial statements Page 129Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
1.Related party transactions of purchasing goods and services
Details about purchasing goods and receiving services:
The content of
Name related party Current period Previous period
transactions
Angang (Liaoning) Materials Technology Engineering
218000.00
Co. Ltd. expenses
Repair
Angang Electrical Co. Ltd. 756800.00 242083.33
expenses
Angang Scrap Resources (Anshan) Co. Ltd. Scrap steel 340185980.44 453356562.94
Angang Scrap Resources (Anshan) Co. Ltd. Raw materials 22561474.22 30067060.36
Angang Steel Processing & Distribution Processing
153382.41
(Dalian) Co. Ltd. fees
Angang Steel Processing & Distribution
Raw materials 441290.28
(Dalian) Co. Ltd.
Angang Steel Processing & Distribution Processing
680768.33558509.59
(Changchun) Co. Ltd. fees
Angang Steel Processing & Distribution
Steel products 231977.35
(Zhengzhou) Co. Ltd.Auxiliary
Angang Steel Company Limited 3205093.05 2243259.03
materials
Ansteel Group Railway Equipment
Spare parts 146544.00
Checking&Repairing Company
Research and
Angang Group Beijing Research Institute
development 420000.00
Co. Ltd.expenses
Angang Group Engineering Technology Work safety
115000.00
Co. Ltd. expenses
Angang Group Engineering Technology Engineering
154988539.0641085063.99
Co. Ltd. expenses
Angang Group Engineering Technology Construction
132877141.5011399010.00
Co. Ltd. materials
Angang Group Engineering Technology Repair
757900.00440000.00
Co. Ltd. expenses
Angang Group International Economic & Raw and fuel
107305564.26
Trade Co. Ltd. materials
Angang Group International Economic &
Spare parts 582749.35
Trade Co. Ltd. Benxi Branch
Angang Group International Economic & Agency
18028337.20
Trade Co. Ltd. Benxi Branch service fees
General
Angang Group Energy-Saving Technology
contracting 3317075.13
Services Co. Ltd.fees
Angang Group Mining Gongchangling Co.Raw materials 76800921.59 283959301.79
Ltd.Ansteel Group Mining Co. LTD Raw materials 1482101.33
Ansteel Group Co. Ltd Other expenses 187932.88
Engineering
Angang Group Automation Co. Ltd. 1600000.00 51010000.00
expenses
Engineering
Angang Construction Group Co. Ltd. 10246537.92
expenses
Construction
Angang Construction Group Co. Ltd. 5653200.00
materials
Angang Mining Automotive Transportation Transportation
276565.11
Co. Ltd. expenses
Notes to the financial statements Page 130Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
The content of
Name related party Current period Previous period
transactions
Angang Green Resources Technology Co. Transportation
4744570.38
Ltd. expenses
Transportation
Ansteel Automobile Transportation Co.Ltd. 1442670.52
expenses
Angang ShenYang Steel Service Center Processing
6261.54
Co.Ltd. fees
Angang Industrial Group (Anshan) General
Equipment Operation & Maintenance Co. contracting 2780930.40 5186262.40
Ltd. fees
Angang Industrial Group Metallurgical
Spare parts 5449100.31 5171074.60
Machinery Co. Ltd.Angang Industrial Group Metallurgical Repair
607165.00742365.00
Machinery Co. Ltd. expenses
Angang Industrial Group Co. Ltd. Other expenses 23469.02
Repair
Ansteel Shuangsheng (Anshan) Fan Co. Ltd 215000.00
expenses
Ansteel Water Technology (Liaoning) Co. Auxiliary
1612185.98
Ltd. materials
Angang Heavy Machinery Design & Engineering
15865600.00
Research Institute Co. Ltd. expenses
Angang Heavy Machinery Co. Ltd. Spare parts 3257110.00 2420723.73
Repair
Angang Heavy Machinery Co. Ltd. 286000.00
expenses
Anshan Angang International Travel Business travel
11721.71208942.62
Agency Co. Ltd. service fees
Anshan Iron & Steel Metallurgical Furnace Auxiliary
1526938.8716017174.40
Material Technology Co. Ltd. materials
Anshan Jianbo Engineering Testing Co. Engineering
238000.00
Ltd. expenses
Bengang Stainless Steel Cold Rolling
Spare parts 836410.79
Dandong Co. Ltd.Auxiliary
Bengang Electrical Co. Ltd. 97672744.51 92154394.59
materials
Repair
Bengang Electrical Co. Ltd. 13890147.57 5501414.12
expenses
Bengang Gaoyuan Industrial Development
Spare parts 11880.00 953010.00
Co. Ltd.Bengang Gaoyuan Industrial Development Engineering
1280000.00282880.00
Co. Ltd. expenses
Bengang Gaoyuan Industrial Development Construction
2460000.003446194.70
Co. Ltd. materials
Bengang Gaoyuan Industrial Development Repair
360120.00552220.00
Co. Ltd. expenses
Bengang Group Dalian Refractory Materials Auxiliary
1830776.631512678.48
Co. Ltd materials
Bengang Group International Economic and Agency
3258589.5540066549.91
Trade Co. Ltd. service fees
Bengang Group Co. Ltd. Service fees 888143.50
Benxi Aike Hydraulic Sealing Co. Ltd. Spare parts 2155588.70 4523499.37
Benxi Northern Iron Industry Co. Ltd. Raw materials 5770319.12
Benxi Beiying Iron and Steel (Group) Co. Energy and
356672847.08317250973.21
Ltd. power
Benxi Beiying Iron and Steel (Group) Co. Auxiliary 4929741.55 4527949.56
Notes to the financial statements Page 131Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
The content of
Name related party Current period Previous period
transactions
Ltd. materials
Benxi Beiying Iron and Steel (Group) Co.Fuel 642622442.63 590246360.58
Ltd.Benxi Beiying Iron and Steel (Group) Co.Raw materials 5928330534.06 5445149888.78
Ltd.Benxi Beiying Iron and Steel (Group) Co. Transportation
3158081.083175834.38
Ltd. expenses
Benxi Beiying Iron and Steel (Group) Co.Weighing fees 757653.87 2084326.89
Ltd.Benxi Beiying Iron and Steel (Group) Co. Heating
7479982.491320665.34
Ltd. expenses
Benxi Beiying Iron and Steel (Group) Co. Chemical
701444.941000000.00
Ltd. testing fees
Benxi Beiying Iron and Steel (Group) Co. Repair
5936845.145423067.78
Ltd. expenses
General
Benxi Beiying Iron and Steel (Group) Co.contracting 39283771.00 40092290.58
Ltd.fees
Benxi Dongfenghu Steel Resource
Scrap steel 4390797.95 8502486.63
Utilization Co. Ltd.Benxi Dongfenghu Steel Resource
Fuel 2832492.90 5484933.10
Utilization Co. Ltd.Benxi Dongfenghu Steel Resource
Raw materials 2060273.59 3989582.04
Utilization Co. Ltd.Benxi Iron and Steel (Group) Real Estate
Raw materials 318201.40
Development Co. Ltd.Benxi Iron and Steel (Group) Engineering Engineering
885990.00694500.00
Construction Supervision Co. Ltd. expenses
Port
Benxi Steel and Iron(Group)Tengda
miscellaneous 19137576.17 50679877.49
Co.Ltd.charges
Benxi Steel and Iron(Group)Tengda
Fuel 37694.33 154788.70
Co.Ltd.Benxi Steel and Iron(Group)Tengda Transportation
265344221.52295615020.26
Co.Ltd. expenses
Benxi Iron and Steel (Group) Machinery
Spare parts 50983076.15 55121052.81
Manufacturing Co. Ltd.Benxi Iron and Steel (Group) Machinery
Scrap steel 3281399.65 6677925.78
Manufacturing Co. Ltd.Benxi Iron and Steel (Group) Machinery Auxiliary
19201582.2739076843.69
Manufacturing Co. Ltd. materials
Benxi Iron and Steel (Group) Machinery Engineering
12056060.003000000.00
Manufacturing Co. Ltd. expenses
Benxi Iron and Steel (Group) Machinery Construction
20065290.003094489.62
Manufacturing Co. Ltd. materials
Benxi Iron and Steel (Group) Machinery Repair
14497730.012320841.09
Manufacturing Co. Ltd. expenses
Benxi Iron and Steel (Group) Machinery
Rental fees 418680.00 299057.14
Manufacturing Co. Ltd.Benxi Iron and Steel (Group) Machinery Labor service
343515.90317822.80
Manufacturing Co. Ltd. fees
Benxi Iron and Steel (Group) Machinery General
10781894.346975467.86
Manufacturing Co. Ltd. contracting
Notes to the financial statements Page 132Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
The content of
Name related party Current period Previous period
transactions
fees
Benxi Iron and Steel (Group) Construction Work safety
2000000.005741845.00
Co. Ltd. expenses
Benxi Iron and Steel (Group) Construction Packaging
7858038.991461511.15
Co. Ltd. materials
Benxi Iron and Steel (Group) Construction
Scrap steel 684102.60 127235.76
Co. Ltd.Benxi Iron and Steel (Group) Construction Engineering
98463744.8922631700.36
Co. Ltd. expenses
Benxi Iron and Steel (Group) Construction Construction
40671630.4010000000.00
Co. Ltd. materials
Benxi Iron and Steel (Group) Construction Repair
25127019.5627404647.62
Co. Ltd. expenses
Benxi Iron and Steel (Group) Construction
Rental fees 3470033.34
Co. Ltd.Benxi Iron and Steel (Group) Construction Labor service
2129290.664104171.39
Co. Ltd. fees
General
Benxi Iron and Steel (Group) Construction
contracting 9485344.02 18282838.62
Co. Ltd.fees
Benxi Iron and Steel (Group) Mining Engineering
9058913.268862434.50
Construction Engineering Co. Ltd. expenses
Benxi Iron and Steel (Group) Mining Repair
8260865.0010010650.00
Construction Engineering Co. Ltd. expenses
Benxi Steel Group Mining Liaoyang
Scrap steel 152672.10
Jiajiaopu Iron Mine Co. Ltd.Benxi Steel Group Mining Liaoyang
Scrap steel 279470.60 341041.41
Ma'erling Pelletizing Co. Ltd.Benxi Steel Group Mining Liaoyang
Raw materials 1103428540.37 1346527431.40
Ma'erling Pelletizing Co. Ltd.Benxi Iron and Steel (Group) Mining Co. Auxiliary
190158542.30
Ltd. materials
Benxi Iron and Steel (Group) Mining Co.Scrap steel 6632504.30 8160528.43
Ltd.Benxi Iron and Steel (Group) Mining Co.Raw materials 1955904869.50 2406514429.03
Ltd.Benxi Iron and Steel (Group) Thermal
Scrap steel 134558.60 45088.60
Power Development Co. Ltd.Benxi Steel Group Equipment Engineering
Spare parts 11707144.31 8650212.00
Co. Ltd.Benxi Steel Group Equipment Engineering
Scrap steel 3157479.46 2723059.51
Co. Ltd.Benxi Steel Group Equipment Engineering Engineering
151358466.4156846193.36
Co. Ltd. expenses
Benxi Steel Group Equipment Engineering Construction
36584949.756757131.86
Co. Ltd. materials
Benxi Steel Group Equipment Engineering Repair
164381618.86253153105.08
Co. Ltd. expenses
General
Benxi Steel Group Equipment Engineering
contracting 3224355.85 1024685.00
Co. Ltd.fees
Benxi Steel Group Industrial Development Repair
1835300.00448651.00
Co. Ltd. expenses
Notes to the financial statements Page 133Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
The content of
Name related party Current period Previous period
transactions
Benxi Steel Group Industrial Development Greening
3526920.00320360.00
Co. Ltd. expenses
Benxi Steel Group Industrial Development Transportation
1581235.292339298.23
Co. Ltd. expenses
Benxi Steel Group Industrial Development Obsolete
154732.701260519.35
Co. Ltd. materials
Benxi Steel Group Industrial Development
Scrap steel 121754653.74 139005148.35
Co. Ltd.Benxi Steel Group Industrial Development
Raw materials 5438923.10 6209522.92
Co. Ltd.Benxi Steel Group Industrial Development Auxiliary
10345140.5817015.07
Co. Ltd. materials
Benxi Steel Group Information Automation Engineering
27709556.872211232.68
Co. Ltd. expenses
Benxi Steel Group Information Automation Construction
121702123.12106449785.65
Co. Ltd. materials
Information
system
Benxi Steel Group Information Automation
operation and 12000000.00 2000000.00
Co. Ltd.maintenance
fees
Benxi Steel Group Information Automation Repair
1242500.001141141.90
Co. Ltd. expenses
Work safety
Benxi Iron and Steel (Group) Co. LTD 1783000.00 3947340.00
expenses
Obsolete
Benxi Iron and Steel (Group) Co. LTD 13814.61 415855.29
materials
Engineering
Benxi Iron and Steel (Group) Co. LTD 119266.91 3506228.82
expenses
Technical
Benxi Iron and Steel (Group) Co. LTD 410000.00 1152972.96
service fees
Security and
Benxi Iron and Steel (Group) Co. LTD fire protection 9699583.40 22991434.62
fees
Energy and
Benxi Iron and Steel (Group) Co. LTD 112938.29 118036.44
power
Benxi Xihu Metallurgical Furnace Material Auxiliary
81308481.29103927615.78
Co. Ltd. materials
Benxi New Industrial Development Co. Office
691553.87767630.83
Ltd. expenses
Benxi New Industrial Development Co.Scrap steel 22295.00
Ltd.Business
Benxi New Industrial Development Co.entertainment 94085.00 238259.00
Ltd.expenses
Benxi New Industrial Development Co.Rental fees 120000.00 114285.72
Ltd.Benxi New Industrial Development Co.Other expenses 313090.29 468194.98
Ltd.Delin Industrial Products Co. Ltd Spare parts 26641853.28 13534420.24
Auxiliary
Delin Industrial Products Co. Ltd 8783673.06 2106178.25
materials
Delin Land Port Supply Chain Services Co. Warehousing 373238.29 241754.80
Notes to the financial statements Page 134Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
The content of
Name related party Current period Previous period
transactions
Ltd fees
Delin Land Port Supply Chain Services Co. Sales service
183674.08725223.98
Ltd fees
Liaoning Hengtai Heavy Machinery Co. Work safety
2280000.001230000.00
Ltd. expenses
Liaoning Hengtai Heavy Machinery Co.Spare parts 5900800.48 4281433.80
Ltd.Liaoning Hengtai Heavy Machinery Co.Scrap steel 177158.80 49347.00
Ltd.Liaoning Hengtai Heavy Machinery Co. Construction
10877800.002000000.00
Ltd. materials
Liaoning Hengtai Heavy Machinery Co. Repair
4246052.003712273.00
Ltd. expenses
General
Liaoning Hengtai Heavy Machinery Co.contracting 322275.00 910000.00
Ltd.fees
Liaoning Hengtai Heavy Machinery Co. Transportation
115957.00
Ltd. expenses
Liaoning Hengtong Metallurgical
Spare parts 77092898.25 89753179.51
Equipment Manufacturing Co. Ltd.Liaoning Hengtong Metallurgical Repair
4394740.002835275.00
Equipment Manufacturing Co. Ltd. expenses
Liaoning Hengtong Metallurgical
Raw materials 266062.54
Equipment Manufacturing Co. Ltd.Transportation
Liaoning Lide Internet of Things Co. Ltd. 55529050.22 5920776.67
expenses
General
Liaoning Lide Internet of Things Co. Ltd. contracting 87600249.58 95680438.16
fees
Liaoning Yitong Machinery Manufacturing
Spare parts 10496578.78 6562573.96
Co. Ltd.Liaoning Yitong Machinery Manufacturing
Scrap steel 219054.88 17554.15
Co. Ltd.Liaoning Yitong Machinery Manufacturing Construction
320463.37
Co. Ltd. materials
Liaoning Yitong Machinery Manufacturing Repair
5424.794982.31
Co. Ltd. expenses
Pangang Group Chengdu Vanadium & Auxiliary
3474192.311285665.38
Titanium Resources Development Co. Ltd. materials
Pangang Group Engineering Technology Engineering
300000.00297250.00
Consulting Co. Ltd. expenses
Shanxi Materials International Energy Co. Raw and fuel
15942888.02
Ltd. materials
Tianjin Bengang Plate Processing & Warehousing
4924.501852.58
Distribution Co. Ltd. fees
Tianjin Bengang Plate Processing & Processing
177897.21680936.34
Distribution Co. Ltd. fees
Details of selling goods and rendering of services:
Notes to the financial statements Page 135Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
The content of
Name related party Current period Previous period
transactions
Angang (Hangzhou) Automotive Steel and steel
Materials Technology Co. Ltd. products 9368825.32 962303.04
Angang Steel Processing & Distribution Warehousing
(Dalian) Co. Ltd. income 6572.87 10000.00
Angang Steel Processing & Distribution Processing
(Dalian) Co. Ltd. income 709.90 9210.40
Angang Steel Processing & Distribution
(Dalian) Co. Ltd. Raw materials 10300639.87 21841442.86
Angang Steel Processing & Distribution
(Changchun) Co. Ltd. Raw materials 1009155.91 2607666.46
Angang Steel Processing & Distribution
(Zhengzhou) Co. Ltd. Raw materials 2951005.24
Angang Steel Distribution (Hefei) Co. Steel and steel
Ltd. products 199242.28
Angang Steel Distribution (Wuhan) Co.Ltd. Raw materials 3096311.53
ANGANG Steel Co. Ltd Steel and steelproducts 3967763.31 698731.41
Ansteel Chemical Technology Co. Ltd Chemicals andby-products 136032448.22 127769839.46
Ansteel Group Engineering Technology Energy and
Co. Ltd. power 16447.08 31001.31
Bensteel Group International Economic Steel and steel
and Trade Co. LTD products 198622209.28
Angang Group Energy-Saving Chemicals and
Technology Services Co. Ltd. by-products 585622.80
Angang Group Energy-Saving Energy and
Technology Services Co. Ltd. power 1578975.01 41054.20
Ansteel Group Co. Ltd Energy andpower 5043.59
Angang Construction Group Co. Ltd. Energy andpower 279.46
Angang Mining Machinery Steel and steel
Manufacturing Co. Ltd. products 15442967.67 14820100.10
Angang Green Resources Technology Raw and
Co. Ltd. auxiliary 5193872.81 37353702.58materials
Angang Energy Technology Co. Ltd. Chemicals andby-products 9514672.04 15257345.77
Ansteel Tendering Co. Ltd. Benxi Energy and
Branch power 10309.54
Bengang Electrical Co. Ltd. Energy andpower 107.35
Bengang Group Dalian Refractory Steel and steel
Materials Co. Ltd products 4224070.16
Bengang Group Dalian Refractory
Materials Co. Ltd Raw materials 399470.50
Ben Steel Group Co. Ltd Energy andpower 101034.27 112893.51
Benxi Northern Iron Industry Co. Ltd. Scrap steel 16941524.29 16398523.67
Raw and
Benxi Northern Iron Industry Co. Ltd. auxiliary 67941784.82 52132719.97
materials
Raw and
Benxi Beifang Steel Rolling Co.Ltd. auxiliary 1106623.83
materials
Benxi Beiying Iron and Steel (Group)
Co. LTD Scrap steel 173691235.64 125596905.40
Benxi Beiying Iron and Steel (Group) Steel and steel
Co. LTD products 4373827.69 5080428.29
Benxi Beiying Iron and Steel (Group) Chemicals and
Co. LTD by-products 2489180.71
Notes to the financial statements Page 136Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
The content of
Name related party Current period Previous period
transactions
Benxi Beiying Iron and Steel (Group) Energy and
Co. LTD power 24955758.51 28512393.64
Benxi Beiying Iron and Steel (Group) Raw and
Co. LTD auxiliary 4732050.27materials
Benxi Dongfenghu Steel Resource Chemicals and
Utilization Co. Ltd. by-products 119530.59 3487432.00
Benxi Dongfenghu Steel Resource Testing and
Utilization Co. Ltd. chemical 21698.11 9481.13inspection
Benxi Dongfenghu Steel Resource Energy and
Utilization Co. Ltd. power 1999539.07 2624235.81
Benxi Dongfenghu Steel Resource Raw and
Utilization Co. Ltd. auxiliary 4017943.52 1263611.14materials
Benxi Iron and Steel (Group) Real Energy and
Estate Development Co. Ltd. power 1599.21 13728.04
Benxi Iron and Steel (Group)
Engineering Construction Supervision Energy and 874.86 1013.49
Co. Ltd. power
Benxi Iron and Steel (Group) Machinery Warehousing
Manufacturing Co. LTD income 1128.28
Benxi Iron and Steel (Group) Machinery Testing and
Manufacturing Co. LTD chemical 69556.60inspection
Benxi Iron and Steel (Group) Machinery Steel and steel
Manufacturing Co. LTD products 8921510.61 3401493.72
Benxi Iron and Steel (Group) Machinery Chemicals and
Manufacturing Co. LTD by-products 932754.82 670802.00
Benxi Iron and Steel (Group) Machinery Processing
Manufacturing Co. LTD income 13746.33 33801.89
Benxi Iron and Steel (Group) Machinery Energy and
Manufacturing Co. LTD power 4084240.16 6007102.33
Benxi Iron and Steel (Group) Testing and
Construction Co. Ltd chemical 337.92inspection
Benxi Iron and Steel (Group) Energy and
Construction Co. Ltd power 1456705.56 1316916.78
Benxi Iron and Steel (Group) Mining Steel and steel
Construction Engineering Co. Ltd. products 95376.11
Benxi Iron and Steel (Group) Mining Energy and
Construction Engineering Co. Ltd. power 83862.76 126145.36
Benxi Steel Group Mining Liaoyang Testing and
Jiajiaopu Iron Mine Co. Ltd. chemical 38730.00 77560.00inspection
Benxi Steel Group Mining Liaoyang Energy and
Jiajiaopu Iron Mine Co. Ltd. power 12131.93 13732.39
Benxi Steel Group Mining Liaoyang Energy and
Ma'erling Pelletizing Co. Ltd. power 2868.70 3189.49
Benxi Steel Group Mining Liaoyang
Ma'erling Pelletizing Co. Ltd. Fuel 6342966.56 15251380.56
Benxi Iron and Steel (Group) Mining Steel and steel
Co. LTD products 5421571.34 5117925.32
Benxi Iron and Steel (Group) Mining Chemicals and
Co. LTD by-products 72089654.55 10058151.58
Benxi Iron and Steel (Group) Mining Energy and
Co. LTD power 15535086.96 86736810.96
Benxi Iron and Steel (Group) Mining
Co. LTD Fuel 28735073.43 31208244.58
Benxi Iron and Steel (Group) Mining Transportation
Co. LTD income 3443385.04 4095412.97
Benxi Iron and Steel (Group) Thermal Chemicals and 1468084.50
Notes to the financial statements Page 137Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
The content of
Name related party Current period Previous period
transactions
Power Development Co. Ltd. by-products
Benxi Iron and Steel (Group) Thermal Energy and
Power Development Co. Ltd. power 12350374.48 16654093.36
Benxi Iron and Steel (Group) Thermal
Power Development Co. Ltd. Fuel 9998954.55 6936257.99
Benxi Iron and Steel (Group) Equipment Steel and steel
Engineering Co. LTD products 385719.02 4260129.29
Benxi Iron and Steel (Group) Equipment Energy and
Engineering Co. LTD power 1245472.05 1332306.99
Benxi Iron and Steel (Group) Industrial Obsolete
Development Co. LTD materials 14660401.67 35006656.83
Benxi Iron and Steel (Group) Industrial Energy and
Development Co. LTD power 3774803.32 3722832.64
Benxi Iron and Steel (Group) Industrial Chemicals and
Development Co. LTD by-products 53485.10 3106.04
Benxi Iron and Steel (Group) Industrial Raw and
Development Co. LTD auxiliary 35043228.00 35000000.00materials
Benxi Steel Group Information Energy and
Automation Co. Ltd. power 219503.20 252361.34
Benxi Iron and Steel (Group) Co. LTD Auxiliarymaterials 410792.54 597621.68
Benxi Iron and Steel (Group) Co. LTD Energy andpower 5656233.48 4386101.97
Benxi Xihu Metallurgical Furnace Energy and
Material Co. Ltd. power 262237.50 99284.19
Benxi Weld Phosphate Overlay Energy and
Manufacturing Co. Ltd. power 19480.21 27999.71
Benxi New Industrial Development Co. Energy and
Ltd. power 142545.86 105194.07
Benxi New Industrial Development Co.Ltd. Rental income 24500.00
Chengdu Xingyun Smart Technology Information
Co. Ltd. technology 87991.38services
Dalian Bolore Steel Pipe Co. Ltd. Steel and steelproducts 441221.12 11258142.09
Delin Land Port Supply Chain Services Steel and steel
Co. Ltd products 818452693.36 235925970.25
Delin Land Port Supply Chain Services
Co. Ltd Raw materials 819818063.16 1087654168.23
Guangzhou Ansteel Steel Processing
Co. Ltd. Raw materials 35403058.32 13979582.23
Liaoning Hengtai Heavy Machinery Co. Energy and
Ltd. power 697.03
Liaoning Hengtong Metallurgical
Equipment Manufacturing Co. Ltd. Scrap steel 6246961.20 7000000.00
Liaoning Hengtong Metallurgical Obsolete
Equipment Manufacturing Co. Ltd. materials 10107394.89 10826996.90
Liaoning Hengtong Metallurgical Testing and
Equipment Manufacturing Co. Ltd. chemical 47688.68inspection
Pangang Group Jiangyou Great Wall Steel and steel
Special Steel Co. Ltd. products 15594024.81 12193696.16
Shenyang Angang International Trade
Co.Ltd. Raw materials 3479173.00
Tianjin Angang Steel Processing & Steel and steel
Distribution Co. Ltd. products 24030223.68 6780770.79
Tianjin Angang Steel Processing &
Distribution Co. Ltd. Raw materials 4611840.10 8460616.32
Changchun FAW Angang Steel Warehousing
Processing & Distribution Co. Ltd. income 2971.66
Notes to the financial statements Page 138Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
The content of
Name related party Current period Previous period
transactions
Changchun FAW Angang Steel Steel and steel
Processing & Distribution Co. Ltd. products 658879.52
Changchun FAW Angang Steel
Processing & Distribution Co. Ltd. Raw materials 15261993.84 3761138.31
China Ordins Group Co.Ltd. Steel and steelproducts 166331.79
2. Lease information of related parties
Company as the lessor：
Lessee Lease capital Lease income of
Lease income
category current period of previousperiod
Benxi Iron and Steel (Group) Equipment Warehouse and
Engineering Co. LTD machinery 670802.00
Benxi New Industrial Development Co. Warehouse and
Ltd. machinery 24500.00
Notes to the financial statements Page 139Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Company as the lessee:
Current period Previous period
Rental
Rental costs
Variable costs for Variable
for
lease short-term lease
short-term
Lease assets payments Interest leases and payments Interest
Lessor leases and Increase in Increase in
category not included expense on leases of not included expense onleases of Rent paid right-of-use Rent paid right-of-use
in the lease low-value in the lease
low-value assets assets
measurement liabilities assets measurement liabilities
assets with
of lease with of lease
simplified
liabilities simplified liabilities
treatment
treatment
Land use right
7669068.17
Benxi Iron and square meter
Steel (Group) Land use right 27638772.06 18502019.80 27638772.06 19500054.00
Co. Ltd. 42920.00
square meter
2300 Hot
Benxi Iron and rolling
Steel (Group) product line 8049080.52 3348358.04 8049080.52 3870344.34
Co. Ltd. related real
estate
1780 Hot
Benxi Beiying
Iron and Steel rolling
(Group) Co. product line 7175818.86 2578717.23 7175818.86 2980721.70
Ltd. related real
estate
Ben Steel Land use right
Group Co. 728282.30 4972711.56 756809.43 4972711.56 1224959.40
Ltd square meter
Angang Group machinery 828571.67 1400598.59 12063482.04 119211.50
Notes to the financial statements Page 140Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Current period Previous period
Rental
Rental costs
Variable costs for Variable
for
lease short-term lease
short-term
Lease assets payments Interest leases and payments Interest
Lessor leases and Increase in Increase in
category not included expense on leases of not included expense onleases of Rent paid right-of-use Rent paid right-of-use
in the lease low-value in the lease
low-value assets assets
measurement liabilities assets measurement liabilities
assets with
of lease with of lease
simplified
liabilities simplified liabilities
treatment
treatment
Energy-Saving and
Technology equipment
Services Co.Ltd.Benxi Iron and
Steel (Group) Transportation
Construction 3470033.34equipment
Co. Ltd
Notes to the financial statements Page 141Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(6) Receivables and payables of related parties
1. Receivables of the Company
30 June 2025 31 December 2024
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Angang Steel
Accounts Processing &
receivable Distribution 4990133.72 49901.34 17280685.82 172806.86(Dalian) Co.Ltd.Accounts ANGANG
receivable Steel Co. Ltd 299204.69 2992.05 519491.94 5194.92
Angang
Group
Accounts International
receivable Economic & 579141895.93 5791418.96Trade Co.Ltd. Benxi
Branch
Angang
Accounts Construction
receivable Group Co. 315.79 3.16
Ltd.Angang
Accounts Energy
receivable Technology 4246220.21 42462.20
Co. Ltd.Ansteel
Accounts Tendering
receivable Company 3791.96 37.92
Limited
Bensteel
Group
Accounts International
receivable Economic and 3451697.88 34516.98 253981286.94 2539812.87
Trade Co.LTD
Accounts Ben Steel
receivable Group Co. 5131.50 51.32Ltd
Benxi
Accounts Northern Iron
receivable Industry Co. 9023749.23 90237.49 8268156.18 82681.56
Ltd.Accounts Benxi Beifang
receivable Steel Rolling 2725711.03 160027.46 1475226.11 14752.26Co.Ltd.Benxi Beiying
Accounts Iron and Steel
receivable (Group) Co. 65344301.60 653443.02 143872.00 1438.72
LTD
Benxi
Dongfenghu
Accounts Steel
receivable Resource 366159.82 3661.60 454258.02 4542.58
Utilization
Co. Ltd.Benxi Iron
Accounts and Steel
receivable (Group) 739002.67 7390.03Machinery
Manufacturing
Notes to the financial statements Page 142Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
30 June 2025 31 December 2024
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Co. LTD
Benxi Iron
Accounts and Steel
receivable (Group) 1591948.83 69684.83 1389266.64 39345.19Construction
Co. Ltd
Benxi Iron
and Steel
Accounts (Group)
receivable Mining 598269.04 155187.48 607729.23 63193.36Construction
Engineering
Co. Ltd.Benxi Iron
and Steel
(Group)
Accounts Mining
receivable Mineral 88983.85 17796.77 88983.85 8898.39
Resources
Development
Co. Ltd.Benxi Steel
Accounts Group Mining
receivable Liaoyang 25630.80 256.31 16557.90 165.58Jiajiaopu Iron
Mine Co. Ltd.Benxi Steel
Group Mining
Accounts Liaoyang
receivable Ma'erling 501.11 5.01 921521.39 67911.03
Pelletizing
Co. Ltd.Benxi Iron
and Steel
Accounts (Group)
receivable Mining Yanjia 13714.00 137.14Valley
Limestone
Mine Co. Ltd.Benxi Iron
Accounts and Steel
receivable (Group) 23514930.92 235441.48 2184958.74 21849.59Mining Co.LTD
Benxi Iron
and Steel
Accounts (Group)
receivable Thermal 9490225.04 885802.55 6744686.82 246075.39Power
Development
Co. Ltd.Benxi Iron
and Steel
Accounts (Group)
receivable Equipment 1634125.24 49646.38 1903696.41 39634.20
Engineering
Co. LTD
Benxi Iron
and Steel
Accounts (Group)
receivable Industrial 7084369.26 70843.69 6964699.57 69647.00
Development
Co. LTD
Notes to the financial statements Page 143Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
30 June 2025 31 December 2024
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Benxi Steel
Accounts Group
receivable Information 5885.49 58.85 561.58 5.62Automation
Co. Ltd.Benxi Iron
Accounts and Steel
receivable (Group) Co. 1156517.59 90599.12 1700740.58 17007.41
LTD
Benxi Xihu
Accounts Metallurgical
receivable Furnace 66717.46 667.17 49833.00 498.33Material Co.Ltd.Benxi Weld
Accounts Phosphate
receivable Overlay 188239.90 17317.16 190148.59 8558.50Manufacturing
Co. Ltd.Guangzhou
Accounts Ansteel Steel
receivable Processing 4577685.01 45776.85
Co. Ltd.Liaoning
Hengtong
Accounts Metallurgical
receivable Equipment 54010.30 540.10
Manufacturing
Co. Ltd.Accounts Liaoning Slag
receivable Micro Powder 12848.00 128.48Co. Ltd.Pangang
Group
Accounts Jiangyou
receivable Great Wall 6990483.45 69904.83 5864196.39 58641.96
Special Steel
Co. Ltd.Angang Steel
Accounts Distribution
receivable (Wuhan) Co. 343341.92 3433.42
Ltd.Ansteel Group
Accounts Engineering
receivable Technology 23232.88 232.33
Co. Ltd.Other Ansteel
receivables Museum 345160.00 3451.60
Other ANGANG
receivables Steel Co. Ltd 95781.27 55603.99 95781.27 50581.83
Anshan
Education and
Other Training
receivables Center of 6706.00 670.60
Ansteel Group
Co. Ltd
Bengang
Other Stainless Steel
receivables Cold Rolling 709548.62 70954.86 1030000.00 10300.00Dandong Co.Ltd.Other Ben Steel
receivables Group Co. 426.94 4.27
Notes to the financial statements Page 144Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
30 June 2025 31 December 2024
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Ltd
Benxi Iron
Other and Steel
receivables (Group) 250679.61 250679.61 250679.61 250679.61Construction
Co. Ltd
Benxi Iron
Other and Steel
receivables (Group) Co. 2674500.00 413000.00 2674500.00 157740.00
LTD
Liaoning Lide
Other Internet of
receivables Things Co. 1881016.00 18810.16
Ltd.Other Ansteel Group
receivables Co. Ltd 13906.00 139.06
Angang Steel
Processing &
Prepayments Distribution 1027.17 663.59
(Changchun)
Co. Ltd.Bengang
Gaoyuan
Prepayments Industrial 11817.51
Development
Co. Ltd.Benxi Beiying
Prepayments Iron and Steel(Group) Co. 1832466.75 7880500.42
LTD
Benxi Iron
and Steel
(Group)
Prepayments Mining 11600.01
Construction
Engineering
Co. Ltd.Benxi Iron
and Steel
Prepayments (Group)Equipment 3274557.89 3162173.15
Engineering
Co. LTD
Benxi Iron
and Steel
Prepayments (Group)Industrial 4305.30
Development
Co. LTD
Benxi Steel
Group
Prepayments Information 581838.17 575313.17
Automation
Co. Ltd.Liaoning
Hengtong
Prepayments MetallurgicalEquipment 62100.00
Manufacturing
Co. Ltd.Benxi Iron
Prepayments and Steel 318579.31
(Group)
Notes to the financial statements Page 145Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
30 June 2025 31 December 2024
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Machinery
Manufacturing
Co. LTD
Prepayments ANGANGSteel Co. Ltd 411660.66 484808.79
Bensteel
Group
Prepayments InternationalEconomic and 0.01 0.01
Trade Co.LTD
Angang
Group
International
Prepayments Economic & 386757348.18
Trade Co.Ltd. Benxi
Branch
Benxi New
Prepayments IndustrialDevelopment 7196737.50 7196737.50
Co. Ltd.Bensteel
Other Group
non-current International 3735200.31
assets Economic andTrade Co.LTD
Bengang
Other Gaoyuan
non-current Industrial 542400.00
assets Development
Co. Ltd.Benxi Iron
Other and Steel
non-current (Group) 19936615.33 19936615.33
assets Construction
Co. Ltd
Benxi Iron
and Steel
Other (Group)
non-current Mining 2210879.80 3102019.08
assets Construction
Engineering
Co. Ltd.Benxi Iron
Other and Steel
non-current (Group)Equipment 11987515.98 12686042.92assets Engineering
Co. LTD
Benxi Iron
Other and Steel
non-current (Group)
assets Industrial
562392.14562392.14
Development
Co. LTD
Benxi Steel
Other Group
non-current Information 3332204.39 7692252.35
assets Automation
Co. Ltd.Other Liaoning 37496.00 5895416.00
Notes to the financial statements Page 146Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
30 June 2025 31 December 2024
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
non-current Hengtai
assets Heavy
Machinery
Co. Ltd.Other Ansteel Group
non-current EngineeringTechnology 1968632.21 1968632.21assets Co. Ltd.
2. Payables of the Company
Items Name 30 June 2025 31 December2024
Contract Angang (Hangzhou) Automotive Materials
liabilities Technology Co. Ltd. 3750833.76 644589.93
Contract Angang Steel Processing & Distribution
liabilities (Dalian) Co. Ltd. 1018.12
Contract Angang Steel Processing & Distribution
liabilities (Changchun) Co. Ltd. 1899033.90 2826567.07
Contract Angang Steel Processing & Distribution
liabilities (Zhengzhou) Co. Ltd. 892279.74
Contract
liabilities Angang Steel Distribution (Hefei) Co. Ltd. 2874061.03 3099204.80
Contract
liabilities Angang Steel Distribution (Wuhan) Co. Ltd. 4583660.69 731023.72
Contract
liabilities ANGANG Steel Co. Ltd 675535.16
Contract
liabilities Ansteel Chemical Technology Co. Ltd 14101881.90 10758548.27
Contract Bensteel Group International Economic and
liabilities Trade Co. LTD 649732.04 649732.04
Contract Angang Mining Machinery Manufacturing Co.liabilities Ltd. 1229420.59 354001.32
Contract
liabilities Angang Green Resources Technology Co. Ltd. 725412.26 477418.26
Contract
liabilities Angang Energy Technology Co. Ltd. 0.02
Contract Angang ShenYang Steel Service Center
liabilities Co.Ltd. 87869.94 87869.94
Contract Angang Industrial Group Metallurgical
liabilities Machinery Co. Ltd. 176000.00
Contract Bengang Group Dalian Refractory Materials
liabilities Co. Ltd 612944.03 4203125.16
Contract Bensteel Group International Economic and
liabilities Trade Co. LTD 3749095.41
Contract
liabilities Benxi Beiying Iron and Steel (Group) Co. LTD 51134.39 6329389.09
Contract Benxi Dongfenghu Steel Resource Utilization
liabilities Co. Ltd. 4117146.33 4881014.65
Contract Benxi Iron and Steel (Group) Machinery
liabilities Manufacturing Co. LTD 3011498.83 5552.80
Contract Benxi Iron and Steel (Group) Construction Co.liabilities Ltd 39135.82 39135.82
Contract Benxi Steel Group Mining Liaoyang Ma'erling
liabilities Pelletizing Co. Ltd. 7832447.78
Contract
liabilities Benxi Iron and Steel (Group) Mining Co. LTD 89538.53 510246.41
Contract Benxi Iron and Steel (Group) Thermal Power
liabilities Development Co. Ltd. 13580550.16 8620006.55
Notes to the financial statements Page 147Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items Name 30 June 2025 31 December2024
Contract Benxi Iron and Steel (Group) Industrial
liabilities Development Co. LTD 5391048.35 10393122.80
Contract
liabilities Benxi Steel Group Metallurgical Slag Co. Ltd. 0.01
Contract Benxi Xihu Metallurgical Furnace Material Co.liabilities Ltd. 20000.00 20000.00
Contract
liabilities Dalian Bolore Steel Pipe Co. Ltd. 2692667.29 3191247.16
Contract Delin Land Port Supply Chain Services Co.liabilities Ltd 298456859.46 305864435.81
Contract
liabilities Guangzhou Ansteel Steel Processing Co. Ltd. 500000.00
Contract Liaoning Hengtong Metallurgical Equipment
liabilities Manufacturing Co. Ltd. 3499420.49 3278592.93
Contract Liaoning Metallurgical Vocational Technical
liabilities College 0.01 0.01
Contract
liabilities Shenyang Angang International Trade Co.Ltd. 77209.51
Contract Tianjin Angang Steel Processing & Distribution
liabilities Co. Ltd. 4041076.85 4824582.32
Contract Changchun FAW Angang Steel Processing &
liabilities Distribution Co. Ltd. 3558838.98 8200175.36
Accounts
payable Angang Electrical Co. Ltd. 884705.20 63861.90
Accounts
payable Ansteel Scrap Resources (Anshan) Co. Ltd 32581323.59 90856997.04
Accounts Angang Steel Processing & Distribution
payable (Changchun) Co. Ltd. 218356.00 108462.46
Accounts
payable ANGANG Steel Co. Ltd 417943.14 417943.09
Accounts Ansteel Group Railway Equipment
payable Checking&Repairing Company 165594.72
Accounts Bensteel Group International Economic and
payable Trade Co. LTD 206408739.59 193806.42
Accounts Angang Group Mining Gongchangling Co.payable Ltd. 774734.40
Accounts Angang Mining Automotive Transportation
payable Co. Ltd. 324680.50
Accounts
payable Angang Green Resources Technology Co. Ltd. 519297.58
Accounts
payable Ansteel Automobile Transportation Co.Ltd. 1572510.86
Accounts Angang Industrial Group (Anshan) Equipment
payable Operation & Maintenance Co. Ltd. 837559.85
Accounts Angang Industrial Group Metallurgical
payable Machinery Co. Ltd. 4261107.71 3048409.40
Accounts
payable Ansteel Shuangsheng (Anshan) Fan Co. Ltd 24295.00
Accounts
payable Ansteel Water Technology (Liaoning) Co. Ltd. 3931587.73
Accounts
payable Angang Heavy Machinery Co. Ltd. 2860106.84 2480080.39
Accounts Anshan Iron & Steel Metallurgical Furnace
payable Material Technology Co. Ltd. 2641730.70
Accounts Bengang Stainless Steel Cold Rolling Dandong
payable Co. Ltd. 624692.88
Accounts Bengang Gaoyuan Industrial Development Co.payable Ltd. 208135.93 3969044.08
Accounts Bengang Group Dalian Refractory Materials
payable Co. Ltd 1517561.11 1487446.42
Accounts Bensteel Group International Economic and
payable Trade Co. LTD 51915818.90 50692605.67
Accounts Bengang Group Co. Ltd. 4688239.05 4688239.05
Notes to the financial statements Page 148Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items Name 30 June 2025 31 December2024
payable
Accounts
payable Benxi Aike Hydraulic Sealing Co. Ltd. 614044.95 2778115.83
Accounts
payable Benxi Northern Iron Industry Co. Ltd. 6594132.35 73671.74
Accounts
payable Benxi Beiying Iron and Steel (Group) Co. LTD 226831342.96 79183767.61
Accounts Benxi Dongfenghu Steel Resource Utilization
payable Co. Ltd. 4981760.68 2794117.30
Accounts Benxi Iron and Steel (Group) Real Estate
payable Development Co. Ltd. 89735.06 89735.06
Accounts
payable Benxi Steel and Iron(Group)Tengda Co.Ltd. 62942037.48 46335396.72
Accounts Benxi Iron and Steel (Group) Machinery
payable Manufacturing Co. LTD 35572416.20 10659752.69
Accounts Benxi Iron and Steel (Group) Construction
payable Advanced Decoration Co. Ltd. 264705.62 264705.62
Accounts Benxi Iron and Steel (Group) Construction Co.payable Ltd 9365140.50 29543424.37
Accounts Benxi Iron and Steel (Group) Mining
payable Construction Engineering Co. Ltd. 8805513.96 12083876.39
Accounts Benxi Steel Group Mining Liaoyang Jiajiaopu
payable Iron Mine Co. Ltd. 82233.63
Accounts Benxi Steel Group Mining Liaoyang Ma'erling
payable Pelletizing Co. Ltd. 47399676.59 10282360.99
Accounts Benxi Iron and Steel (Group) Thermal Power
payable Development Co. Ltd. 96683.95 12362.40
Accounts Benxi Iron and Steel (Group) Equipment
payable Engineering Co. LTD 80117560.04 92630122.46
Accounts Benxi Iron and Steel (Group) Industrial
payable Development Co. LTD 40787885.05 53022441.36
Accounts Benxi Steel Group Information Automation
payable Co. Ltd. 24568773.81 23459353.69
Accounts
payable Benxi Iron and Steel (Group) Co. LTD 14518359.64 28808379.76
Accounts Benxi Xihu Metallurgical Furnace Material Co.payable Ltd. 16417935.42 17171380.52
Accounts Benxi Weld Phosphate Overlay Manufacturing
payable Co. Ltd. 234112.13 234112.13
Accounts
payable Benxi New Industrial Development Co. Ltd. 38700.00 38700.00
Accounts
payable Dalian Bolore Steel Pipe Co. Ltd. 1007742.98
Accounts
payable Delin Industrial Products Co. Ltd 14644619.26 11409283.88
Accounts Delin Land Port Supply Chain Services Co.payable Ltd 445.65 7713.30
Accounts
payable Liaoning Hengtai Heavy Machinery Co. Ltd. 8918144.56 13479975.49
Accounts Liaoning Hengtong Metallurgical Equipment
payable Manufacturing Co. Ltd. 13456405.96 7166704.73
Accounts
payable Liaoning Lide Internet of Things Co. Ltd. 10816631.56 7230457.06
Accounts Liaoning Metallurgical Vocational Technical
payable College 48048.00 517768.00
Accounts Liaoning Yitong Machinery Manufacturing
payable Co. Ltd. 7816893.90 4599719.45
Accounts Tianjin Angang Steel Processing & Distribution
payable Co. Ltd. 558.87 487.99
Accounts
payable Benxi Iron and Steel (Group) Mining Co. LTD 97472445.94 59008517.39
Accounts Ansteel Group Engineering Technology Co.payable Ltd. 206001.22 85440.00
Notes to the financial statements Page 149Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items Name 30 June 2025 31 December2024
Accounts
payable Bengang Electrical Co. Ltd. 2692262.89
Other Angang (Liaoning) Materials Technology Co.payables Ltd. 231080.00 300000.00
Other
payables Ansteel Scrap Resources (Anshan) Co. Ltd 500000.00 500000.00
Other
payables Angang Metal Structure Co. Ltd. 10000.00
Other Bensteel Group International Economic and
payables Trade Co. LTD 18967059.09
Other Anshan Education and Training Center of
payables Ansteel Group Co. Ltd 4640.00
Other
payables Ansteel Automation Co. LTD 14175000.00 7332129.00
Other
payables Angang Construction Group Co. Ltd. 17587042.93 3319522.94
Other
payables Angang Metal Structure Co. Ltd. 10000.00
Other Angang Heavy Machinery Design & Research
payables Institute Co. Ltd. 826121.54 826121.54
Other
payables Angang Heavy Machinery Co. Ltd. 1040012.56 1040012.56
Other Anshan Iron & Steel Metallurgical Furnace
payables Material Technology Co. Ltd. 50000.00 50000.00
Other
payables Bengang Electrical Co. Ltd. 776394.34 776394.34
Other Bengang Gaoyuan Industrial Development Co.payables Ltd. 7875937.56 5005617.56
Other Bensteel Group International Economic and
payables Trade Co. LTD 60972214.65 66120363.96
Other
payables Ben Steel Group Co. Ltd 159842920.79 219843255.77
Other
payables Benxi Bengang Automobile Transport Co.Ltd. 214352.25
Other
payables Benxi Aike Hydraulic Sealing Co. Ltd. 58590.00 58590.00
Other
payables Benxi Beiying Iron and Steel (Group) Co. LTD 6645124.07 7766352.17
Other Benxi Dongfenghu Steel Resource Utilization
payables Co. Ltd. 210000.00 210000.00
Other Benxi Iron and Steel (Group) Engineering
payables Construction Supervision Co. Ltd. 1745527.83 1488917.43
Other Benxi Iron and Steel (Group) Machinery
payables Manufacturing Co. LTD 33741169.74 3792085.01
Other Benxi Iron and Steel (Group) Inspection and
payables Testing Co. Ltd. 735280.00
Other Benxi Iron and Steel (Group) Construction
payables Advanced Decoration Co. Ltd. 123738.55 123738.55
Other Benxi Iron and Steel (Group) Construction Co.payables Ltd 262803189.75 217077997.48
Other Benxi Iron and Steel (Group) Mining
payables Construction Engineering Co. Ltd. 10981616.76 7550015.30
Other Benxi Iron and Steel (Group) Road and Bridge
payables Construction Engineering Co. Ltd. 318.66
Other Benxi Iron and Steel (Group) Thermal Power
payables Development Co. Ltd. 1577196.00 697337.92
Other Benxi Iron and Steel (Group) Equipment
payables Engineering Co. LTD 761976791.64 724514695.24
Other Benxi Iron and Steel (Group) Industrial
payables Development Co. LTD 1412218.05 1412218.05
Other Benxi Steel Group Information Automation
payables Co. Ltd. 212884549.10 108472109.63
Other Benxi Iron and Steel (Group) Co. LTD 14940076.44 52720523.82
Notes to the financial statements Page 150Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items Name 30 June 2025 31 December2024
payables
Other Benxi Xihu Metallurgical Furnace Material Co.payables Ltd. 100000.00 100000.00
Other
payables Benxi New Industrial Development Co. Ltd. 6643964.37 13997378.10
Other
payables Dalian Bolore Steel Pipe Co. Ltd. 20000.00 20000.00
Other
payables Liaoning Hengtai Heavy Machinery Co. Ltd. 9464878.94 5024204.94
Other
payables Liaoning Hengyi Steel Trading Co. Ltd 11758998.02 11758998.02
Other Liaoning Metallurgical Vocational Technical
payables College 353630.00 353630.00
Other Liaoning Yitong Machinery Manufacturing
payables Co. Ltd. 372123.61 330463.37
Other Ansteel Group Engineering Technology Co.payables Ltd. 279386628.55 114249580.71
Other Bengang Group Dalian Refractory Materials
payables Co. Ltd 20000.00
Dividends
payable Bengang Group Co. Ltd. 45054305.70 45054305.70
(7) Centralized Fund Management
1. The key elements of the centralized capital management arrangements in which the
Company participates and operates are as follows：
In December 2024 after negotiation with Ansteel Group Finance Co. Ltd. (hereinafter
referred to as “Ansteel Finance Co.”) the Financial Services Agreement (Years 2025–2027)
was entered into in order to agree on the terms of the relevant financial business and the
upper limit of the amount of the relevant transactions between the Company and its
subsidiaries and Ansteel Finance Co. for the years 2025 2026 and 2027. The agreement
stipulates that the maximum daily balance of funds deposited by Bengang Plates in Ansteel
Finance Co. for settlement shall not exceed RMB 4.5 billion each year and the interest
generated by the deposits shall not exceed RMB 100 million per year; the amount of loans
bills and other forms of credit provided by Ansteel Finance Co. to Bengang Plates shall not
exceed RMB 5 billion each year and the loan interest shall not exceed RMB 250 million per
year; the amount of entrusted loans provided by Ansteel Finance Co. to Bengang Plate Group
shall not exceed RMB 2 billion each year and the entrusted loan interest shall not exceed
RMB 100 million per year.
2. Funds pooled by the Company to the Group
Funds deposited directly into finance companies by the Company without being pooled into
the accounts of the Group's parent company
Items 30 June 2025 31 December 2024
Notes to the financial statements Page 151Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Cash at bank and on
hand 237849896.52 1227198770.48
Total 237849896.52 1227198770.48
Funds restricted due to
centralized management
of funds
12. Commitments and Contingencies
(1) Significant Commitments
1. Significant commitments existing at the balance sheet date
(1) According to the "Land Use Right Leasing Contract" and subsequent supplementary
agreements signed by the company and Benxi Steel (Group) on April 7 1997 and December
30 2005 the Company leases land from Bengang Group at a rate of 0.594 yuan per square
meter per month. The total leased land area is 7669068.17 square meters with an annual
rent of 54.66 million yuan..
(2) On August 14 2019 the Company signed the Building Lease Agreements with Benxi
Steel (Group) Co. Ltd. and Benxi Beiying Steel (Group) Co. Ltd. leasing the buildings and
auxiliary facilities occupied by the 2300 hot rolling mill production line and the 1780 hot
rolling mill production line respectively. The lease term extends until December 31 2038.The lease fee is determined based on the depreciation of the original building value and
national surtaxes plus a reasonable profit margin through negotiation. The estimated
maximum annual rent shall not exceed 20 million yuan and 18 million yuan respectively. The
rent is settled and paid on a monthly basis. This related party transaction has been reviewed
and approved by the Company’s 8th Board of Directors at its 4th meeting.
(3) On July 15 2019 the Company signed Land Lease Agreements with Benxi Steel (Group)
Co. Ltd. and Bengang Group leasing a total of eight parcels of land from both companies.The leased land areas are 42920.00 square meters and 728282.30 square meters respectively.The lease term is 20 years with a rental price of 1.138 yuan per square meter per month.After the agreement takes effect every five years an evaluation will be conducted based on
national laws and policies and the pricing principles stipulated in Article 2 of the agreement
to determine whether the lease charges needs to be adjusted. This related-party transaction
has been reviewed and approved by the Company’s 8th Board of Directors at its 3rd meeting.
(4) As of June 30 2025 the amount of unfulfilled irrevocable letters of credit was RMB
1.496 billion.
(2) Contingencies
As of June 30 2025 the Company has no significant contingent matters that require
disclosure.Notes to the financial statements Page 152Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
13. Subsequent events
On July 22 2025 the Company issued the "Announcement on the Progress of Major Asset
Replacement and Related-Party Transactions". The company plans to conduct an asset
replacement with its controlling shareholder Benxi Iron and Steel (Group) Co. Ltd. The
proposed asset to be placed in the company is 100% equity in Benxi Iron and Steel (Group)
Mining Co. Ltd. and the proposed asset to be divested is all of the listed company's assets
and liabilities excluding retained assets and liabilities. The difference between the proposed
assets to be placed in and the proposed assets to be divested will be made in cash by one
party to the other. Currently the specific scope of the transaction's target assets transaction
price and other factors have not been finalized and the two parties have not yet signed any
agreement. The transaction plan still requires further discussion communication and
negotiation and is subject to the necessary decision-making and approval procedures in
accordance with relevant laws regulations and the company's articles of association.Significant uncertainty remains regarding these matters.
14. Other significant events
(1) Correction of previous accounting errors
1. Retrospective Restatement Method
There were no corrections of prior period accounting errors using the retrospective
restatement method during the current reporting period.
2. Prospective Application Method
There were no corrections of prior period accounting errors using the future application
method in the current reporting period.
(2) Segment information
Since the Company's main product is steel the sales volume of other products accounts
for a relatively small proportion and the main production base is in Liaoning Province it
is not applicable to disclose segment reports.
15. Notes to the financial statements of parent company
1. Accounts receivable
(1) Accounts receivable disclosed by aging
Items 30 June 2025 31 December 2024
Within 1 year (inclusive) 914625356.19 775949268.73
1-2 years (inclusive) 108300699.30 5786445.58
2-3 years (inclusive) 4952094.14 126254788.19
Notes to the financial statements Page 153Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Items 30 June 2025 31 December 2024
3-4 years (inclusive) 99914704.39 557413.41
4-5 years (inclusive) 556497.21 748799.87
Over 5 years 98134252.64 97491074.53
Sub-total 1226483603.87 1006787790.31
Less: Provision for bad debts 136902674.25 107374488.69
Total: 1089580929.62 899413301.62
Notes to the financial statements Page 154Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(2) Accounts receivable disclosed by method of bad debt provision
30 June 2025 31 December 2024
Gross carrying amount Provision for bad debts Gross carrying amount Provision for bad debts
Items Bad Bad
Amount Percentage Amount debts Book value Amount Percentage Amount debts Book value(%) ratio (%) ratio
(%)(%)
Tested for
impairment 48196244.68 3.93 48196244.68 100.00 48196244.68 4.79 48196244.68 100.00
individually
Tested for
impairment 1178287359.19 96.07 88706429.57 7.53 1089580929.62 958591545.63 95.21 59178244.01 6.17 899413301.62
by portfolio
Include:
Aging
portfolio 864698567.49 70.50 88706429.57 10.26 775992137.92 313614474.73 31.15 59178244.01 18.87 254436230.72
Risk-free
portfolio 313588791.70 25.57 313588791.70 644977070.90 64.06 644977070.90
Total 1226483603.87 100.00 136902674.25 1089580929.62 1006787790.31 100.00 107374488.69 899413301.62
Notes to the financial statements Page 155Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Significant accounts receivables tested for impairment individually:
30 June 2025 31 December 2024
Bad
Name Accounts Provision for debts Accounts Provision for
receivable bad debts ratio Reason receivable bad debts
（%）
Benxi
Nanfen
Xinhe 48196244.68 48196244.68 100.00 Discontinued 48196244.68 48196244.68
Metallurgical
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
Items 30 June 2025Accounts receivable Provision for bad debts Bad debts ratio (%)
Within 1 year
(inclusive) 771189754.99 7711897.57 1.00
1-2 years
(inclusive) 9502894.65 950289.47 10.00
2-3 years
(inclusive) 4952094.14 990418.82 20.00
3-4 years
(inclusive) 28559318.54 28559318.54 100.00
4-5 years
(inclusive) 556497.21 556497.21 100.00
Over 5 years 49938007.96 49938007.96 100.00
Total 864698567.49 88706429.57
(3) Information of provision reversal or recovery of bad debts in the current
period
Increase/decrease
Items 31 December Reversed Write-off2024 Accrued or or Other 30 June 2025
recovered Write-back changes
Provision
for bad 107374488.69 29528185.56 136902674.25
debts
Total 107374488.69 29528185.56 136902674.25
(4) Top five debtors and contract assets at the end of the period
Closing
Closing balance Closing
Closing balance balance
of accounts Percentage balance of
Company of accounts of
receivable and (%) provision for
receivable contract
contract assets bad debts
assets
Angang Group
International
Economic & 519232245.35 519232245.35 42.34 5192322.45
Trade Co. Ltd.Benxi Branch
Notes to the financial statements Page 156Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Closing
Closing balance Closing
Closing balance balance
of accounts Percentage balance of
Company of accounts of
receivable and (%) provision for
receivable contract
contract assets bad debts
assets
Benxi Bengang
Steel Sales Co. 120738345.20 120738345.20 9.84
Ltd.Bengang
POSCO Cool
73909761.1973909761.196.03
Rolling Steel
Sheet Co. Ltd.Liaoning North
Coal Chemical
Industry 56241715.67 56241715.67 4.59 5241185.70
(Group) Co.Ltd.Bengang
Refractories 48439238.13 48439238.13 3.95 27525071.75
Co. Ltd.Total 818561305.54 818561305.54 66.75 37958579.90
2. Other receivables
Items 30 June 2025 31 December 2024
Interest receivables
Dividend receivables 40000000.00 224898383.95
Other receivables 37724911.85 174911279.65
Total 77724911.85 399809663.60
1. Dividend receivables
(1) Details of dividends receivable
Items 30 June 2025 31 December 2024
BX Steel POSCO Cold Rolled Sheet
Co. Ltd. 163898383.95
Changchun Bengang Steel Sales Co.Ltd. 3000000.00
Guangzhou Bengang Steel & Iron
Trading Co. Ltd. 40000000.00 58000000.00
Sub-total 40000000.00 224898383.95
Less: Provision for bad debts
Total 40000000.00 224898383.95
(2) Significant Dividends Receivable Aged Over One Year
Impairment
Reason for Assessment and
Items Ending Balance Aging
Non-recovery Basis
Retained for
Guangzhou Bengang business
Steel & Iron Trading 40000000.00 2-3years operations No
Co. Ltd. recovered in the
following year
Total 40000000.00
Notes to the financial statements Page 157Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
2. Other receivables
(1) Other receivables disclosed by aging
Items 30 June 2025 31 December 2024
Within 1 year (inclusive) 1585326.54 57266931.07
1-2 years (inclusive) 2614726.28 89144027.11
2-3 years (inclusive) 14485445.32 13450953.62
3-4 years (inclusive) 714068.83 31188795.54
4-5 years (inclusive) 25926906.53 842882.51
Over 5 years 52979511.11 52141851.60
Sub-total 98305984.61 244035441.45
Less: Provision for bad debts 60581072.76 69124161.80
Total 37724911.85 174911279.65
Notes to the financial statements Page 158Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(2) Disclosed by bad debt accrual method
30 June 2025 31 December 2024
Gross carrying amount Provision for bad debts Gross carrying amount Provision for bad debts
Items Bad Bad
Amount Percentage Amount debts Book value Amount Percentage Amount debts Book value(%) ratio (%) (%) ratio (%)
Provision for
bad debts 15752285.66 16.02 15752285.66 100.00 15752285.66 6.45 15752285.66 100.00
individually
Provision for
bad debts based 82553698.95 83.98 44828787.10 54.30 37724911.85 228283155.79 93.55 53371876.14 23.38 174911279.65
on portfolio
Include:
Aging portfolio 60286570.27 61.33 44828787.10 74.36 15457783.17 201016027.11 82.37 53371876.14 26.55 147644150.97
Risk-free
portfolio 22267128.68 22.65 22267128.68 27267128.68 11.17 27267128.68
Total 98305984.61 100.00 60581072.76 37724911.85 244035441.45 100.00 69124161.80 174911279.65
Notes to the financial statements Page 159Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Significant other receivables tested for impairment individually:
30 June 2025 31 December 2024
Items Gross
Bad
carrying Provision for debts Basis of
Gross Provision for
amount bad debts ratio accrual
carrying
(%) amount
bad debts
Benxi Iron
and Steel
(Group) No.
3 12504978.5 12504978.5 100.0 Discontinue 12504978.5 12504978.5
Architectura 9 9 0 d 9 9
l
Engineering
Co. Ltd.Total 12504978.5 12504978.5 12504978.5 12504978.59 9 9 9
Provision for bad debt by portfolio of credit risk characteristics:
Provision for bad debts by portfolio: Aging analysis
Items 30 June 2025Other receivables Provision for bad debts Bad debts ratio (%)
Within 1 year
(inclusive) 1568676.46 15686.77 1.00
1-2 years (inclusive) 2573819.13 257381.91 10.00
2-3 years (inclusive) 14485445.32 2897089.06 20.00
3-4 years (inclusive) 714068.83 714068.83 100.00
4-5 years (inclusive) 3072337.08 3072337.08 100.00
Over 5 years 37872223.45 37872223.45 100.00
Total 60286570.27 44828787.10
(3) Details of provision for bad debts
Stage one Stage two Stage three
Lifetime Lifetimeexpected credit
Provision for bad debts 12-month expected creditexpected credit losses (credit losses (credit Total
losses impairment has impairment has
not occurred) alreadyoccurred)
Beginning balance 572260.25 11604593.43 56947308.12 69124161.80
Beginning balance in
current period
--Transfer to Stage two -514763.83 514763.83
--Transfer to Stage three -714068.83 714068.83
--Reversal to Stage two
--Reversal to Stage one
Current period provision -41809.65 -8250817.46 -250461.93 -8543089.04
Current period reversal
Current period
write-back
Current period write-off
Other change
Ending balance 15686.77 3154470.97 57410915.02 60581072.76
(4) Provision for bad debts accrued reversed or recovered in the current period
Notes to the financial statements Page 160Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Changes during the current period
Items 31 December Reversal2024 Accrual or Write-back Others 30 June 2025
recovered or write-off
Provision for
bad debts 69124161.80 -8543089.04 60581072.76
Total 69124161.80 -8543089.04 60581072.76
(5) Other receivables disclosed by nature
Nature 30 June 2025 31 December 2024Compensation for the “LivingShowbelt” project 87177700.00
Current account 95149222.98 153899831.94
Others 3156761.63 2957909.51
Total 98305984.61 244035441.45
(6) Top five debtors at the period end
Percentage
of total
Provision for
Company Nature Amount Aging other
bad debts
receivables
(%)
Yantai Bengang Steel Current
22267128.68 4-5 years 22.65 -
Sales Co. Ltd. account
Benxi Iron and Steel
4-5 years
(Group) No. 3 Current
12504978.59 over 5 12.72 12504978.59
Architectural account
years
Engineering Co. Ltd.Benxi Iron and Steel
(Group) No. 1 Current Over 5
3247307.073.303247307.07
Architectural account years
Engineering Co. Ltd.Benxi Iron and Steel Current 1-2 years
2674500.002.72413000.00
(Group) Co. LTD account 2-3 years
Liaoning Huawei Coal Current Over 5
2261360.002.302261360.00
Preparation Co. Ltd. account years
Total 42955274.34 43.69 18426645.66
3. Long-term equity investment
30 June 2025 31 December 2024
Items Gross carrying Gross carrying
amount Impairment Book value amount Impairment Book value
Subsidiaries 2422543459.43 2422543459.43 2391943459.43 2391943459.43
Joint
Ventures
and 45413221.72 45413221.72 45413221.72 45413221.72
Associates
Total 2467956681.15 2467956681.15 2437356681.15 2437356681.15
Notes to the financial statements Page 161Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
(1) Details of investment in subsidiaries
Changes in the Current Period
Beginning Provisions Ending
Name of entity Beginning balance balance of Additional Reduction in of Ending balance balance of
impairment Investment Investment Impairment Othersof current impairment
period
Shanghai Bengang Metallurgy Science
and Technology Co. Ltd. 229936718.57 229936718.57
Benxi Bengang Steel Sales Co. Ltd. 30000000.00 30000000.00
Bengang POSCO Cold Rolled Sheet
Co. Ltd. 1019781571.10 1019781571.10
Tianjin Bengang Steel & Iron Trading
Co. Ltd. 230318095.80 230318095.80
Changchun Bengang Steel Sales Co.Ltd. 28144875.36 28144875.36
Yantai Bengang Steel & Iron Sales Co.Ltd. 219100329.41 219100329.41
Guangzhou Bengang Steel & Iron
Trading Co. Ltd. 200000000.00 200000000.00
Dalian Benruitong Automotive
Materials Technology Co. Ltd. 65000000.00 65000000.00
Shenyang Bengang Metallurgical
Science and Technology Co. Ltd. 200000000.00 200000000.00
North Hengda Logistics Co. Ltd. 169661869.19 - 169661869.19
Green Gold (Benxi) Renewable
Resources Co. Ltd. 30600000.00 30600000.00
Total 2391943459.43 30600000.00 2422543459.43 -
(2) Details of investment in Associates and Joint Ventures
For investments in associates and joint ventures please refer to Note V (9) Long-term Equity Investments.Notes to the financial statements Page 162Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
4. Operating Income and Operating Cost
(1) Operating income and operating cost
Items Current period Previous periodRevenue Cost Revenue Cost
Principal
business 24194919372.80 25098732350.98 28086225442.07 29148262789.55
Other
business 648195035.42 645476449.44 673924129.88 685977515.04
Total 24843114408.22 25744208800.42 28760149571.95 29834240304.59
(2) Breakdown of operating income and operating cost
Item Current period Previous periodRevenue Cost Revenue Cost
By Timing of
Goods
Transfer:
Recognized
at a point in 24194919372.80 25098732350.98 644628717.14 645468901.56
time
Recognized
over a period 3566318.28 7547.88
of time
Total 24194919372.80 25098732350.98 648195035.42 645476449.44
By Operating
Region:
Domestic 20230392316.61 21073058305.06 648195035.42 645476449.44
Overseas 3964527056.19 4025674045.92
Total 24194919372.80 25098732350.98 648195035.42 645476449.44
5. Income on investment
Items Current period Previous period
Income on long-term equity investment by cost
method
Income on long-term equity investment by equity
method
Income arising from debt restructuring 6934.05
Others -17366881.57 -31605308.28
Total -17359947.52 -31605308.28
16. Supplementary Information
(1) Details of Non-recurring Gains and Losses for the Current Period
Item Amount Note
Gains or losses from disposal of non-current assets including the
reversal of previously recognized impairment losses -31536907.02
Government grants recognized in profit or loss for the period
except those closely related to the company’s normal operations in
accordance with national policies enjoyed according to determined 78993583.13
standards and having a continuous effect on the company’s profit
Notes to the financial statements Page 163Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
Item Amount Note
or loss
Gains or losses arising from changes in fair value of financial
assets and financial liabilities held by non-financial enterprises
and from disposal of such financial assets and liabilities except for
effective hedging related to the company’s normal operations
Fees for the occupation of funds charged to non-financial
enterprises and recognized in profit or loss
Gains or losses from entrusting others to invest or manage assets
Gains or losses from entrusted loans to external parties
Losses on assets due to force majeure such as natural disasters
Reversal of impairment provisions for individually tested
receivables 10820884.61
Gains arising when the cost of acquiring investments in
subsidiaries associates or joint ventures is less than the fair value
of identifiable net assets acquired
Net profit or loss of subsidiaries from the beginning of the period
to the date of business combination under common control
Gains or losses from non-monetary asset exchanges
Gains or losses from debt restructuring 7215.64
One-off expenses arising from discontinuation of related business
activities such as employee resettlement costs
One-off impact on profit or loss due to adjustments in taxes
accounting or other laws and regulations
One-off recognition of share-based payment expenses due to
cancellation or modification of equity incentive plans
Gains or losses arising from fair value changes of cash-settled
share-based payments after the vesting date
Gains or losses from changes in fair value of investment properties
measured using the fair value model
Gains from transactions with manifestly unfair prices
Gains or losses arising from contingent matters unrelated to the
company’s normal operations
Trustee operation management fees
Other non-operating income and expenses not included above 4740318.97
Other gains and losses meeting the definition of non-recurring
profit or loss
Subtotal 63025095.33
Impact of income tax 13042387.54
Impact of minority interests (after tax) -1119307.09
Total 51102014.88
(2) Return on equity and earnings per share
Weighted Average Earnings per Share (CNY)
Profit in the Reporting Period Return on Equity
(%) Basic EPS Diluted EPS
Net profit attributable to
shareholders of the Company’s -12.50 -0.341 -0.341
ordinary shares
Net profit attributable to
shareholders of the Company’s
ordinary shares after deducting -12.98 -0.353 -0.353
non-recurring gains and losses
Note: Assuming that the company’s convertible bonds are converted into ordinary shares
the number of outstanding ordinary shares for the period would increase by
1422465070.11 shares and net profit would increase by CNY 213977737.80 resulting
Notes to the financial statements Page 164Bengang Steel Plates Co. Ltd.Interim Financial statements 2025
Notes to the financial statements
in an increase in earnings per share of CNY 0.08 per share. This indicates that such
potential ordinary shares are anti-dilutive rather than dilutive; therefore they are not
considered in the calculation of diluted earnings per share. Diluted earnings per share are
determined based on basic earnings per share.Notes to the financial statements Page 165
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