Bengang Steel Plates Co. Ltd.FINANCIAL STATEMENTS
Semi-Annual 2024Bengang Steel Plates Co. Ltd.FINANCIAL STATEMENTS
(From 1 January 2024 to 30 June 2024)
INDEX PAGES
1、 FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL 1-4
POSITION AND STATEMENT OF FINANCIAL
POSITION
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME AND STATEMENT OF COMPREHENSIVE 5-6
INCOME
CONSOLIDATED STATEMENT OF CASH FLOWS AND 7-8
STATEMENT OF CASH FLOWS
CONSOLIDATED STATEMENT OF CHANGES IN 9-12
EQUITY AND STATEMENT OF CHANGES IN EQUITY
NOTES TO THE FINANCIAL STATEMENTS 1-172BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2024
(Expressed in Renminbi unless otherwise indicated)
Assets Notes 5 30 Jun 2024 31 Dec 2023
Current assets
Cash at bank and on hand (1) 1992324226.63 2194654161.34
Settlement provisions
Capital lent
Financial assets held for trading
Derivative financial assets
Notes receivable (2) 783400896.20 453560095.49
Accounts receivable (3) 1327038676.85 1328532598.47
Accounts receivable financing (4) 191450087.40 806822622.43
Prepayments (5) 567363480.87 674872999.29
Premium receivable
Reinsurance accounts receivable
Receivable deposit for reinsurance contract
Other receivables (6) 243424884.42 318793157.58
Redemptory financial assets for sale
Inventories (7) 7854274573.95 7708372894.81
Including: data assets
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets (8) 142442422.36 157789976.90
Total current assets 13101719248.68 13643398506.31
Non-current assets
Loan and advances issued
Debt Investments
Other debt investments
Long-term receivables
Long-term equity investments (9) 46910346.41 46910346.41
Other equity instrument investments (10) 974463039.83 974463039.83
Other non-current financial assets
Investment property
Fixed assets (11) 24878573917.57 25028192964.67
Construction in progress (12) 4156908135.68 4308404147.31
Productive biological assets
Oil and gas assets
Right-of-use assets (13) 1566663478.21 1319616179.37
Intangible assets (14) 252638185.50 256020436.13
Including: data assets
Development expenditure
Including: data assets
Goodwill
Long-term deferred expenses
Deferred tax assets (15) 531708321.88 467040631.42
Other non-current assets (16) 121903869.78 137933599.61
Total non-current assets 32529769294.86 32538581344.75
Total assets 45631488543.54 46181979851.06
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 2024
(Expressed in Renminbi unless otherwise indicated)
Liabilities and equities Notes 5 30 Jun 2024 31 Dec 2023
Current Liabilities
Short-term loans (18) 495730592.00 328000000.00
Loan from central bank
Loan from other banks
Financial liability held for trading
Derivative financial liabilities
Notes payable (19) 11559857567.62 10364993998.89
Accounts payable (20) 2476396054.14 2809435260.77
Advance from customers
Contract liabilities (21) 2925386458.14 3303108592.38
Financial assets sold for repurchase
Deposits from customers and interbank
Receipt from vicariously traded securities
Receipt from vicariously underwriting securities
Employee benefits payable (22) 1083065.32 1175970.83
Current tax liabilities (23) 41045519.93 55402959.11
Other payables (24) 1291824477.57 1659284531.06
Handling charges and commission payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year (25) 474487295.43 685881691.76
Other current liabilities (26) 334009488.97 392122093.59
Total current liabilities 19599820519.12 19599405098.39
Non-current liabilities
Provision for insurance contract
Long-term loans (27) 2319589918.00 1723726700.80
Bonds payable (28) 5522410434.46 5451381676.38
Including: Preferred stock
Perpetual bond
Lease liabilities (29) 1578684995.29 1342427252.45
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income (30) 121815955.18 136084955.18
Deferred tax liabilities (15) 391676209.87 329914385.19
Other non-current liabilities
Total non-current liabilities 9934177512.80 8983534970.00
Total liabilities 29533998031.92 28582940068.39
Shareholders' equity:
Share capital (31) 4108221073.00 4108219302.00
Other equity instruments (32) 947856709.19 947858134.16
Including: Preferred stock
Perpetual bond
Capital reserves (33) 13272231048.85 13272225870.92
Less: treasury shares
Other comprehensive income (34) -50371341.88 -50371341.88
Special reserves (35) 3950302.39 54843.15
Surplus reserves (36) 1195116522.37 1195116522.37
General risk reserve
Undistributed profits (37) -4014083972.36 -2463133834.65
Total equity attributable to equity holders of the parent company 15462920341.56 17009969496.07
Non-controlling interests 634570170.06 589070286.60
Total shareholder's equity 16097490511.62 17599039782.67
Total of liabilities and owners’ equity 45631488543.54 46181979851.06
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 2024
(Expressed in Renminbi unless otherwise indicated)
Assets Notes 14 30 Jun 2024 31 Dec 2023
Current assets
Cash at bank and on hand 1565219400.33 2084382077.60
Financial assets held for trading
Derivative financial assets
Notes receivable 1091748486.31 613514613.02
Accounts receivable (1) 1515826559.56 1243326802.56
Accounts receivable financing 161969807.22 693239068.68
Prepayments 557269854.41 664669952.97
Other receivables (2) 392648388.05 604535173.18
Inventories 7019383657.05 6726641809.04
Including: data assets
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 100948491.33 82661697.57
Total current assets 12405014644.26 12712971194.62
Non-current assets
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments (3) 2269191936.65 2269191936.65
Other equity instrument investments 974463039.83 974463039.83
Other non-current financial assets
Investment property
Fixed assets 23937849640.91 24052882215.31
Construction in progress 4116101211.84 4275801115.73
Productive biological assets
Oil and gas assets
Right-of-use assets 1566663478.21 1319616179.37
Intangible assets 168116690.33 170176158.95
Including: data assets
Development expenditure
Including: data assets
Goodwill
Long-term deferred expenses
Deferred tax assets 530831227.91 465645459.77
Other non-current assets 114992260.13 131159433.56
Total non-current assets 33678209485.81 33658935539.17
Total assets 46083224130.07 46371906733.79
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 2024
(Expressed in Renminbi unless otherwise indicated)
Liabilities and shareholders' equities Notes 14 30 June 2024 31 Dec 2023
Current liabilities
Short-term loans 495730592.00 328000000.00
Financial liability held for trading
Derivative financial liabilities
Notes payable 10233187014.80 10361392779.12
Accounts payable 3192743487.97 3190842780.56
Prepayments
Contract liabilities 5932847092.82 4903008138.37
Employee benefits payable
Current tax liabilities 21221921.24 30105183.40
Other payables 1321397394.39 1656804114.53
Liabilities held for sale
Non-current liabilities due within one year 474487295.43 685881691.76
Other current liabilities 47486240.64 79447326.71
Total current liabilities 21719101039.29 21235482014.45
Non-current liabilities
Long term loans 2319589918.00 1723726700.80
Bonds payable 5522410434.46 5451381676.38
Including: Preferred stock
Perpetual bond
Lease liabilities 1578684995.29 1342427252.45
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income 121815955.18 136084955.18
Deferred tax liabilities 391676209.87 329914385.19
Other non-current liabilities
Total non-current liabilities 9934177512.80 8983534970.00
Total liabilities 31653278552.09 30219016984.45
Shareholder’s equity:
Share capital 4108221073.00 4108219302.00
Other equity instruments 947856709.19 947858134.16
Including: Preferred stock
Perpetual bond
Capital reserves 12852079366.73 12852074188.80
Less: Treasury shares
Other comprehensive income -50371341.88 -50371341.88
Special reserves 1690365.35 3681.16
Surplus reserves 1195116522.37 1195116522.37
Undistributed Profits -4624647116.78 -2900010737.27
Total shareholder's equity 14429945577.98 16152889749.34
Total liabilities and shareholder’s equity 46083224130.07 46371906733.79
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. 2024
(Expressed in Renminbi unless otherwise indicated)
Items Notes 5 Current period Previous period
1. Total operating income 28364539286.80 30567409205.03
Including: Operating income (38) 28364539286.80 30567409205.03
Interest income
Premium earned
Income from handling charges and commission
2. Total operating cost 29882450076.18 31417700991.35
Including: Operating cost (38) 29177241820.27 30714640963.91
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 (39) 102496404.95 99040677.75
Selling and distribution expenses (40) 78868443.13 69901883.24
General and administrative expenses (41) 351694254.72 339569021.49
Research and development expenses (42) 36966260.63 32990679.09
Financial expenses (43) 135182892.48 161557765.87
Including: Interest expense (43) 192939391.68 234419462.35
Interest income (43) 19612598.56 27351519.21
Add: Other income (44) 84071493.95 3518092.14
Income on investment（“-” for loss） (45) -31605308.28 -2541506.30
Including: Income from associates and joint ventures -439659.58
Income from derecognition of financial assets measured at amortized cost
Exchange gains（“-” for loss）
Net exposure hedge income（“-” for loss）
Gains from change of fair value （“-” for loss）
Credit impairment loss （“-” for loss） (46) 16164459.46 -17450773.47
Asset impairment loss （“-” for loss） (47) -14313228.28 -84458260.66
Assets disposal gains（“-” for loss） (48) 10002955.91
3. Operational profit（“-” for loss） -1453590416.62 -951224234.61
Add: Non-operating income (49) 8976877.17 51584548.03
Less: Non-operating expenses (50) 27576186.51 50585327.13
4. Total profit (“ -” for loss) -1472189725.96 -950225013.71
Less: Income tax expenses (51) 34100570.67 33191710.84
5. Net profit（“-” for loss） -1506290296.63 -983416724.55
1.Classification by continuing operating
1.Net profit from continuing operation（“-” for loss） -1506290296.63 -983416724.55
2.Net profit from discontinued operation（“-” for loss）
2.Classification by ownership
1. Net profit attributable to the owners of parent company （“-” for loss） -1550950137.71 -1004945623.68
2. Net profit attributable to non-controlling shareholders （“-” for loss） 44659841.08 21528899.13
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 -1506290296.63 -983416724.55
Total comprehensive income attributable to the owner of the parent company -1550950137.71 -1004945623.68
Total comprehensive income attributable to non-controlling shareholders 44659841.08 21528899.13
8. Earnings per share
1）Basic earnings per share -0.3775 -0.2446
2）Diluted earnings per share -0.3775 -0.1558
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. 2024
(Expressed in Renminbi unless otherwise indicated)
Items Notes 14 Current period Previous period
1. Total operating income (4) 28760149571.95 30351590885.27
Less: Operating cost (4) 29834240304.59 30725796931.13
Tax and surcharges 78312309.36 70444069.04
Selling and distribution expenses 72861508.21 72626552.38
General and administrative expenses 340794236.88 320165443.13
Research and development expenses 36966260.63 32990679.09
Financial expenses 151347791.22 168567801.72
Including: Interest expense 192939391.68 233021988.80
Interest income 16562599.74 18139148.26
Add: Other income 58511958.86 2943726.56
Income on investment（“-” for loss） (5) -31605308.28 -2247043.73
Including: Income from associates and joint ventures -439659.58
Income from derecognition of financial assets
measured at amortized cost
Net exposure hedge income（“-” for loss）
Gains from change of fair value （“-” for loss）
Credit impairment loss（“-” for loss） 13580897.44 -11635010.35
Assets impairment loss（“-” for loss） -14313228.28 -84458260.66
Assets disposal gains（“-” for loss） 10000000.00
2. Operational profit（“-” for loss） -1718198519.20 -1134397179.40
Add: Non-operating income 8866515.98 51556172.07
Less: Non-operating expenses 27207319.92 50585327.13
3. Total profit (“-” for loss) -1736539323.14 -1133426334.46
Less: Income tax expenses -11902943.63 -31989066.39
4. Net profit（“-” for loss） -1724636379.51 -1101437268.07
1.Net profit from continuing operation (“-” for loss) -1724636379.51 -1101437268.07
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 -1724636379.51 -1101437268.07
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. 2024
(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 29518326412.24 28113350099.51
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 152957619.94
Other cash received relating to operating activities (52) 76804297.21 66147192.05
Subtotal of cash inflows from operating activities 29672168175.85 28332454911.50
Cash paid for goods and services 27126140952.23 22042504737.63
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 1033443300.27 1233151555.08
Cash paid for all types of taxes 251370035.13 216708235.51
Other cash paid relating to operating activities (52) 166122491.68 177453101.47
Subtotal of cash outflows from operating activities 28577076779.31 23669817629.69
Net cash flows from operating activities 1095091396.54 4662637281.81
2. Cash flows from investing activities
Cash received from disposal of investments 1843800.00
Cash received from return on investments 896200.00
Net cash received from disposal of fixed assets intangible assets and other long-
4854.3731053599.66
term 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 4854.37 33793599.66
Cash paid for acquisition of fixed assets intangible assets and other long-term
508526841.52926848281.71
assets
Cash paid for acquisition of investments
Net increase of mortgage loan
Net cash received from subsidiary and other operating unit
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities 508526841.52 926848281.71
Net cash flows from investing activities -508521987.15 -893054682.05
3. Cash flows from financing activities
Proceeds from investment
Including: Proceeds from investment of non-controlling shareholders of subsidiary
Proceeds from borrowings 1095000000.00 300000000.00
Other proceeds relating to financing activities (52) 1841743458.53 299914718.38
Subtotal of cash inflows from financing activities 2936743458.53 599914718.38
Cash repayments of borrowings 1657310516.00 1691272090.32
Cash payments for distribution of dividends profit or interest expenses 213951632.57 174775117.17
Including: Cash paid to non-controlling shareholders as dividend and profit by
subsidiaries
Other cash payments relating to financing activities (52) 1677434508.77 695121631.51
Subtotal of cash outflows from financing activities 3548696657.34 2561168839.00
Net cash flows from financing activities -611953198.81 -1961254120.62
4. Effect of foreign exchange rate changes on cash and cash equivalents 22878220.42 30544772.80
5. Net increase in cash and cash equivalents (53) -2505569.00 1838873251.94
Add: Cash and cash equivalents at the beginning of the period (53) 1184774971.52 1296662683.20
6. Cash and cash equivalents at the ending of the period (53) 1182269402.52 3135535935.14
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. 2024
(Expressed in Renminbi unless otherwise indicated)
Items Notes 14 Current period Previous period
1. Cash flow from operating activities
Cash received from sale of goods or rendering of services 29388810509.14 27625067518.78
Tax rebate received 73839161.75 144310086.64
Other cash received relating to operating activities 65515228.78 55780538.64
Subtotal of cash inflows from operating activities 29528164899.67 27825158144.06
Cash paid for goods and services 27619248120.78 22087125206.72
Cash paid to and on behalf of employees 957610316.32 1169170038.27
Cash paid for all types of taxes 160249664.86 64558833.83
Other cash paid relating to operating activities 150081370.56 159109487.43
Subtotal of cash outflows from operating activities 28887189472.52 23479963566.25
Net cash flows from operating activities 640975427.15 4345194577.81
2. Cash flows from investing activities
Cash received from disposal of investments
Cash received from return on investments 137000000.00
Net cash received from disposal of fixed assets intangible
31053599.66
assets and other long-term assets
Net cash received from disposal of subsidiary and other
operating units
Other cash received relating to investing activities 17624754.20
Subtotal of cash inflows from investing activities 137000000.00 48678353.86
Cash paid for acquisition of fixed assets intangible assets and
508204963.64925373942.02
other long-term assets
Cash paid for acquisition of investments
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 508204963.64 925373942.02
Net cash flows from investing activities -371204963.64 -876695588.16
3. Cash flows from financing activities
Proceeds from investment
Cash received from borrowings 1095000000.00 300000000.00
Other cash received relating to financing activities 1841743458.53 299914718.38
Subtotal of cash inflows from financing activities 2936743458.53 599914718.38
Cash repayments of borrowings 1657310516.00 1691272090.32
Cash payments for distribution of dividends profit or interest 213951632.57 174775117.17
Other cash payments relating to financing activities 1677434508.77 678225192.33
Subtotal of cash outflows from financing activities 3548696657.34 2544272399.82
Net cash flows from financing activities -611953198.81 -1944357681.44
4. Effect of foreign exchange rate changes on cash and
22844423.7428934107.60
cash equivalents
5. Net increase in cash and cash equivalents -319338311.56 1553075415.81
Add: Cash and cash equivalents at the beginning of the period 1074502887.78 420642596.45
6. Ending balance of cash and cash equivalents 755164576.22 1973718012.26
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. 2024
(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
Others
shares bond shares income reserve
1. Ending balance of last year 4108219302.00 947858134.16 13272225870.92 -50371341.88 54843.15 1195116522.37 -2463133834.65 17009969496.07 589070286.60 17599039782.67
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 13272225870.92 -50371341.88 54843.15 1195116522.37 -2463133834.65 17009969496.07 589070286.60 17599039782.67
3. Changes in current year (“ -” for decrease) 1771.00 -1424.97 5177.93 3895459.24 -1550950137.71 -1547049154.51 45499883.46 -1501549271.05
1) Total comprehensive income -1550950137.71 -1550950137.71 44659841.08 -1506290296.63
2) Capital increase and decrease by
1771.00-1424.975177.935523.965523.96
shareholders
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity
1771.00-1424.975177.935523.965523.96
instruments
(3) Share-based payment attributable to
owners' equity
(4) Others
3) Profit distribution
(1) Appropriation to surplus reserves
(2) Appropriation to general risk reserve
(3) Profit distribution to shareholders
(4) Others
4) Transfers within shareholders' equity
(1) Capital reserves transferred into paid-in
capital (or stock)
(2) Surplus reserves transferred into paid-in
capital (or stock)
(3) Surplus reserves to recover loss
(4) Net changes of defined contribution plans
transferred into Retained Earnings
(5) Other comprehensive income transferred
into Retained Earnings
(6) Others
5) Special reserves 3895459.24 3895459.24 840042.38 4735501.62
(1) Provision of special reserves 36054579.27 36054579.27 2591073.09 38645652.36
(2) Use of special reserves 32159120.03 32159120.03 -1751030.71 30408089.32
6) Others
4. Ending balance of current year 4108221073.00 947856709.19 13272231048.85 -50371341.88 3950302.39 1195116522.37 -4014083972.36 15462920341.56 634570170.06 16097490511.62
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. 2024
(Expressed in Renminbi unless otherwise indicated)
Previous period
Owner's equity attributable to parent company
Items Other equity instruments Less: Other General Non-controlling Total of owner's
Undistributed
Share capital Preference Perpetual Capital reserves Treasury comprehensive Special reserves Surplus reserves risk Subtotal interest equity
Others profit
shares bond shares income reserve
1. Ending balance of last year 4108212217.00 947863834.02 13272205160.21 -15904760.02 2217913.77 1195116522.37 -720559670.73 18789151216.62 584587863.76 19373739080.38
Add: Change of accounting policies
Correction of errors for last period
Business consolidation under common control
Others
2. Beginning balance of current year 4108212217.00 947863834.02 13272205160.21 -15904760.02 2217913.77 1195116522.37 -720559670.73 18789151216.62 584587863.76 19373739080.38
3. Changes in current year (“ -” for decrease) 2530.00 -2035.66 7397.04 26792439.12 -1004945623.68 -978145293.18 23881110.18 -954264183.00
1) Total comprehensive income -1004945623.68 -1004945623.68 21528899.13 -983416724.55
2) Capital increase and decrease by shareholders 2530.00 -2035.66 7397.04 7891.38 7891.38
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity
instruments
(3) Share-based payment attributable to owners'
equity
(4) Others 2530.00 -2035.66 7397.04 7891.38 7891.38
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 26792439.12 26792439.12 2352211.05 29144650.17
(1) Provision of special reserves 34099757.81 34099757.81 2472551.75 36572309.56
(2) Use of special reserves 7307318.69 7307318.69 -120340.70 7186977.99
6) Others
4. Ending balance of current year 4108214747.00 947861798.36 13272212557.25 -15904760.02 29010352.89 1195116522.37 -1725505294.41 17811005923.44 608468973.94 18419474897.38
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. 2024
(Expressed in Renminbi unless otherwise indicated)
Current period
Other equity instruments Less: Other
Items Special Undistributed Total shareholder’s
Share capital Preference Perpetual Capital reserves Treasury comprehensi Surplus reserves
Others reserves profits equity
shares bond shares ve income
1. Ending balance of last year 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) 1771.00 -1424.97 5177.93 1686684.19 -1724636379.51 -1722944171.36
1) Total comprehensive income -1724636379.51 -1724636379.51
2) Capital increase and decrease by shareholders 1771.00 -1424.97 5177.93 5523.96
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity instruments 1771.00 -1424.97 5177.93 5523.96
(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 1686684.19 1686684.19
(1) Provision of special reserves 28658400.00 28658400.00
(2) Use of special reserves 26971715.81 26971715.81
6) Others
4. Ending balance of current year 4108221073.00 947856709.19 12852079366.73 -50371341.88 1690365.35 1195116522.37 -4624647116.78 14429945577.98
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. 2024
(Expressed in Renminbi unless otherwise indicated)
Previous period
Other equity instruments Less: Other
Items Special Undistributed Total shareholder’s
Share capital Preference Perpetual Capital reserves Treasury comprehensi Surplus reserves
Others reserves profits equity
shares bond shares ve income
1. Ending balance of last year 4108212217.00 947863834.02 12852053478.09 -15904760.02 58212.15 1195116522.37 -1296333684.67 17791065818.94
Add: Change of accounting policies
Correction of errors for last period
Others
2. Beginning balance of current year 4108212217.00 947863834.02 12852053478.09 -15904760.02 58212.15 1195116522.37 -1296333684.67 17791065818.94
3. Changes in current year (“-” for decrease) 2530.00 -2035.66 7397.04 19773600.54 -1101437268.07 -1081655776.15
1) Total comprehensive income -1101437268.07 -1101437268.07
2) Capital increase and decrease by shareholders 2530.00 -2035.66 7397.04 7891.38
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity instruments 2530.00 -2035.66 7397.04 7891.38
(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 19773600.54 19773600.54
(1) Provision of special reserves 26797787.85 26797787.85
(2) Use of special reserves 7024187.31 7024187.31
6) Others
4. Ending balance of current year 4108214747.00 947861798.36 12852060875.13 -15904760.02 19831812.69 1195116522.37 -2397770952.74 16709410042.79
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.Semi-annual 2024
Notes to the financial statements
Bengang Steel Plates Co. Ltd.Notes to the financial statements
For the period from Jan. to Jun. 2024
(Expressed in Renminbi unless otherwise indicated)
1. Basic Information of the Company
(1) Company profile
Bengang Steel Plates Co. Ltd. (hereinafter referred to as “Bengang Steel Plates” or “theCompany”) as approved in Liao-Zheng (1997) No. 57 by Liaoning People’s Government on
27 March 1997 was incorporated as a joint stock limited company through public share offer
of domestic listed foreign currency denominated shares (B shares) in the People’s Republic of
China (the “PRC”) on 27 June 1997 by Benxi Steel and Iron (Group) Co. Ltd. (“BengangGroup”) through reorganization of operations assets and liabilities of its plants namely Steel
Smelting Plant Primary Rolling Plant and Continuous Hot Rolling Plant.As approved by China Securities Regulatory Commission (hereinafter referred to as “theCSRC”) the Company issued 400000000 B-shares at HKD 2.38 each in Shenzhen Stock
Exchange on 10 June 1997. On 3 November 1997 the Company issued another 120000000
A-shares (Renminbi common Shares) at RMB 5.40 each and listed in Shenzhen Stock
Exchange since 15 January 1998. The capital shares were totaled to 1136000000 shares.On 14 March 2006 according to the resolutions of the Shareholders’ Meeting regarding share
equity relocation the Share Equity Relocation Scheme Response to Bengang Steel Plate Co.Ltd. about Share Equity Relocation issued by Liaoning Provincial Government State-owned
Asset Administrative Committee Bengang Group – the only holder of non-negotiable state-
owned legal person shares paid the consideration to the current shareholders to obtain the
current option for the 40800000 shares of the total 616000000 shares it was holding.Shareholding positions have been registered with China Securities Depository & Clearing
Corporation Ltd. Shenzhen Office. However the total amount of capital shares of Bengang
Steel Plates Co. Ltd. was not changed through the share equity relocation action.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
Notes to the financial statements Page 1Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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 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 2024 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 Anshan Iron and Steel 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.Notes to the financial statements Page 2Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
The financial statements have been approved for reporting by the board of directors of the
Company on 27 June 2024.
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 financial position operation results
and cash flows of the Company during the reporting period in accordance with China
Accounting Standards for Business Enterprises.
(2) Accounting year
The Accounting year is from 1 January to 31 December.
(3) Operating period
The operating period is twelve months.
(4) Functional currency
The Company’s functional currency is RMB.Notes to the financial statements Page 3Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(5) The accounting treatment for Business combination under/not under common control
Business combination under common control
The assets and liabilities that the Company acquired in a business combination shall be
measured on the basis of their carrying amount of acquiree’s assets liabilities (as well as the
goodwill arising from the business combination) in the consolidated financial statement of the
ultimate controller on the combining date. As for the balance between the carrying amount of
the net assets obtained by the Company and the carrying amount of the 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
Notes to the financial statements Page 4Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
that the Company has power over the investee enjoys variable returns through participation in
the relevant activities of the investee and has the ability to use the power over the investee to
influence the amount of its returns.
2. Procedure of consolidation
When preparing consolidated financial statements the parent shall consider the entire group as
an accounting entity adopt uniform accounting policies to prepare the consolidated financial
statements which reflect the overall financial position operating results and cash flows of the
group. The impact of internal transactions between the Company and its subsidiaries and
between subsidiaries shall be offset. If internal transactions indicate that relevant assets have
suffered impairment losses such losses shall be fully recognized. The accounting policy and
accounting period of the subsidiaries within the consolidation scope shall be in accordance
with those of the Company. If not it is necessary to make the 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.Notes to the financial statements Page 5Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
When the Company becomes capable of exercising control over an investee under common
control due to additional investment or other reasons adjustment shall be made as if the
reporting entity after the combination has been in existence since the date the ultimate
controlling party first obtained control. The investment income recognized between date of
previously obtaining equity investment and the date the acquiree and acquirer are under
common control which is later and the combining date other comprehensive income and
other changes of net assets arising from the equity investment previously held before
obtaining the control the acquiree shall be adjusted against the prior retained earnings of the
comparative financial statements and the current profit or loss respectively.If it is not under common control it will be included in the consolidated financial statements
from the date of acquisition based on the fair value of each identifiable asset liability and
contingent liability determined on the date of acquisition.When the Company becomes capable of exercising control over an investee not under
common control due to additional investment or other reasons the acquirer shall remeasure
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.Notes to the financial statements Page 6Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
2. Disposing subsidiaries by multiple transactions
Where the Company loses control of a subsidiary in multiple transactions in which it
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.Notes to the financial statements Page 7Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(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 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
Notes to the financial statements Page 8Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
The term “cash” refers to the cash on hand and the unrestricted deposit. And the term “cashequivalents” refers to short-term (maturing within three months from acquisition) and highly
liquid investments that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of change in value.
(9) Foreign currency transaction and translation of foreign currency financial statements
1. Foreign currency 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.Notes to the financial statements Page 9Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
1. Classification of financial instruments
The Company shall classify financial assets on the basis of both the entity’s business model for
managing the financial assets and the contractual cash flow characteristics of the financial asset
as: financial assets measured at amortised cost financial assets measured at fair value 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.Notes to the financial statements Page 10Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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.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)
Notes to the financial statements Page 11Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Financial assets measured at fair value through other comprehensive income (debt instruments)
include receivables financing other debt investments etc. At initial recognition the Company
shall measure a financial asset at its fair value plus transaction costs that are directly attributable
to the acquisition or issuance of the financial asset. The financial assets are subsequently
measured at fair value. Changes in fair value are included in other comprehensive income
except for interest calculated using the effective interest method impairment losses or gains
and exchange gains and losses. When the financial assets are derecognized the accumulated
gain or loss previously recognized in other comprehensive income is transferred from other
comprehensive income and recognized in profit or loss.
(3) Financial assets at fair value through other comprehensive income (equity
instruments)
Financial assets at fair value through other comprehensive income (equity instruments). include
other equity instrument investments etc. At initial recognition the Company shall measure a
financial asset at its fair value plus transaction costs that are directly attributable to the
acquisition or issue of the financial asset. The financial assets are subsequently measured 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
Notes to the financial statements Page 12Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Financial liabilities at fair value through profit or loss include current financial liabilities
derivative financial liabilities etc. The Company shall measure the financial assets at fair value
at initial recognition. Transaction costs are recognised in profit or loss. Changes in fair value
are included in profit or loss.When the financial liabilities are derecognized the difference between the fair value and the.initially recorded amount is recognized as investment income and the gains and losses from
changes in fair value are adjusted.
(6) Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost include short-term borrowings notes. payables
accounts payables other payables long-term borrowings bonds payables long-term payables.At initial recognition the Company shall measure a financial liability at its fair value plus.transaction costs that are directly attributable to the acquisition or issue of the financial asset.Interests calculated by using the effective interest method during the holding period shall be
recognized in profit or loss.When the financial liabilities are derecognized the difference between the price obtained and.the carrying value shall be recognised in profit and loss.
3. Termination of recognition of financial assets and financial assets transfer
When one of the following conditions is met the company terminates the recognition of
financial assets.- Termination of contractual rights to receive cash flows from financial assets;
- The financial assets have been transferred and almost all the risks and rewards in the
ownership of the financial assets have been transferred to the transferee;
- The financial assets have been transferred. Although the company has neither transferred
nor retained almost all the risks and rewards of the ownership of the financial assets it has
not retained control of the financial assets.Notes to the financial statements Page 13Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
If the Company modifies or renegotiates a contract with its counterparty and the modification
constitutes a substantial modification the original financial asset will be derecognized and a
new financial asset will be recognized in accordance with the modified terms.If it retained nearly all of the risks and rewards related to the ownership of the financial asset
it shall not stop recognizing the financial asset.To judge whether the transfer of a financial asset can satisfy the conditions as prescribed in
these Standards for stopping the recognition of a financial asset the Company shall follow the
principle of the substance over form.Transfer of an entire financial asset can be divided into partial financial assets transfer and
entire financial asset transfer. If the transfer of an entire financial asset satisfies the conditions
for de-recognition the difference between the amounts of the following 2 items shall be
recorded in the profits and losses of the current period:
(1) The book value of the transferred financial asset; and
(2) The sum of consideration received from the transfer and the accumulative amount of the
changes of the fair value originally recorded in the owners' equities (in the event that the
financial asset involved in the transfer is a financial asset Available-for-sale).If the transfer of partial financial asset satisfies the conditions to derecognize the entire book
value of the transferred financial asset shall between the portion whose recognition has been
stopped and the portion whose recognition has not been stopped (under such circumstance
the service asset retained shall be deemed as a portion of financial asset whose recognition
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).Notes to the financial statements Page 14Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
If the transfer of financial assets does not satisfy the conditions to stop the recognition it
shall continue to be recognized as financial assets and the consideration received shall be
recognized as financial liabilities.
4. Termination of recognition of financial liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in part may
the recognition of the financial liability be terminated in all or partly. Where the Company
(debtor) enters into an agreement with a creditor so as to substitute the existing financial
liabilities by way of any new financial liability and if the contractual stipulation regarding
the new financial liability is substantially different from that regarding the existing financial
liability it shall terminate the recognition of the existing financial liability and shall at the
same time recognize the new financial liability.Where the Company makes substantial revisions to part or all of the contractual stipulations
of the existing financial liability it shall terminated the recognition of the existing financial
liability or part of it and at the same time recognize the financial liability after revising the
contractual stipulations as a new financial liability.Where the recognition of a financial liability is totally or partially terminated the Company
shall include into the profits and losses of the current period the difference between the
carrying amount which has been terminated from recognition and the considerations it has
paid (including the non-cash assets it has transferred out and the new financial liabilities it
has assumed).Where the Company buys back part of its financial liabilities it shall distribute on the date
of repurchase the carrying amount of the whole financial liabilities in light of the
comparatively fair value of the part that continues to be recognized and the part whose
recognition has 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)
Notes to the financial statements Page 15Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
If active markets for the financial instruments exist the fair value shall be measured by quoted
prices in the active markets. If active markets for the financial instruments do not exist
valuation techniques shall be applied for the measurement. The Company uses valuation
techniques appropriate in the circumstances and for which sufficient data are available to
measure fair value. The Company chooses relevant observable inputs for identical or similar
assets or liabilities. Only when relevant observable inputs are unavailable or should the
Company use unobservable inputs for the asset or liability.
6. Impairment provision of the financial assets
The Company recognize the expected credit loss on financial assets measured at amortized cost
financial assets measured at fair value through other comprehensive income (debt instruments)
financial guarantee contract and so on on the individual or portfolio basis.The Company considers all reasonable and relevant information including past events current
conditions and forecasts of future economic conditions and uses the risk of default as the
weight to calculate the probability-weighted amount of present value of difference between the
cash flow receivable from the contract and the cash flow expected to be received to confirm
the expected credit loss.For account receivables and contract assets recognized according to Accounting Standards for
Business Enterprises No. 14 Revenue whether a significant financing component is contained
or not the Company shall always measure the loss allowance at an amount equal to lifetime
expected credit losses.For lease receivables recognized according to Accounting Standards for Business Enterprises
No. 21 Lease the Company shall always measure the loss allowance at an amount equal to
lifetime expected credit losses.For other financial instruments the Company shall assess changes in the credit risk of the
relevant financial instruments since initial recognition at each balance sheet date.The company compares the risk of default on the balance sheet date of financial instruments
with the risk of default on the date of initial recognition to determine the relative change in 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
Notes to the financial statements Page 16Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
over 30 days after the due date unless there is solid evidence that the credit risk of the financial
instrument has not increased significantly since initial recognition.If the credit risk of a financial instrument at the reporting date is relatively low the Company
considers that the credit risk of the financial instrument has not increased significantly since
the initial recognition.If the credit risk of the financial instrument has increased significantly since the initial
confirmation the Company shall measure the loss allowance for a financial instrument at an
amount equal to the lifetime expected credit losses. If the credit risk on a financial instrument
has not increased significantly since initial recognition the Company shall measure the loss
allowance for that financial instrument at an amount equal to 12-month expected credit losses.The increase or reversal amount of loss allowance thus formed shall be included in the current
profits and losses as impairment losses or gains. For financial assets at fair value through other
comprehensive income (debt instruments) loss provisions are recognised in other
comprehensive income and impairment losses or gains are recognised in profit or loss at the
current period without reducing the carrying amount of the financial asset in the balance sheet.
(11) 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 confirm the actual cost of the inventories dispatched.
3. Inventory system
The Company uses perpetual inventory system.
4. Amortization of low-valued consumables and packing materials
(1) Low-valued consumables shall be amortized in full amount on issuance.
(2) Packing materials shall be amortized in full amount on issuance.
Notes to the financial statements Page 17Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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
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.Notes to the financial statements Page 18Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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 accounting policiesand 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.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
Notes to the financial statements Page 19Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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
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.Notes to the financial statements Page 20Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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.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.Notes to the financial statements Page 21Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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 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).Notes to the financial statements Page 22Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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:
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
Notes to the financial statements Page 23Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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.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.Notes to the financial statements Page 24Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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 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
Notes to the financial statements Page 25Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Item Estimated useful life Criteria
Land use right 50 years Land use right certificate
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
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
Notes to the financial statements Page 26Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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 of the assets onthe 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.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.Notes to the financial statements Page 27Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(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
1. Accounting treatment for short employee benefit
The Company shall recognise in the accounting period in which an employee provides service
actually occurred short-term employee benefits as a liability with a corresponding charge to
the profit or loss or cost of an asset for the current period.Payments made by an enterprise of social security contributions for employees payments of
housing funds and union running costs employee education costs provided in accordance with
relevant requirements shall in the accounting period in which employees provide services be
calculated according to prescribed bases and percentages in determining the amount of
employee benefits.The employee welfare expenses incurred by the company are included in the current profit and
loss or related asset costs based on the actual amount when they actually occur. Among them
non-monetary benefits are measured at fair value.
2. Accounting treatment of post-employment benefits
(1) Defined contribution plan
The Company shall recognize in the accounting period in which an employee provides
service pension fund and unemployment fund for employees as a liability according to the
local government regulations. The amount shall be calculated according to local prescribed
bases and percentages in determining the amount of employee benefits with a
Notes to the financial statements Page 28Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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.
(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.Notes to the financial statements Page 29Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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.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
Notes to the financial statements Page 30Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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;
(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;
Notes to the financial statements Page 31Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(d) The company has transferred the significant risks and rewards of ownership of the goods
to the customer that is the customer has the significant risks and rewards of ownership of the
goods;
(e) The customer has accepted the promised goods or services.The Company determines whether it is the principal or agent when engaging in a transaction
based on whether it has control over the goods or services before transferring them to the
customer. If the Company is able to control the goods or services before transferring them to
the customer the Company is the principal and recognizes revenue based on the total
consideration received or receivable; otherwise the Company is the agent and recognizes
revenue based on the amount of commissions or fees it expects to be entitled to receive.
(2) The specific criteria of revenue recognition and measurement
Commodity sales contracts between companies and customers usually only include
performance obligations for the transfer of steel and other commodities. This type of
performance obligation is a performance obligation performed at a certain point in time. The
Company recognizes revenue when the customer obtains control of the relevant goods or
services. When judging whether the customer has obtained control of goods or services the
company considers the following signs:
The company obtains the current right of collection of receivables the legal ownership of the
goods is transferred to the customer the physical assets of the goods are transferred to the
customer the company transfers the main risks and rewards of the ownership of the goods to
the customer and the customer has accepted the goods.
(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.Notes to the financial statements Page 32Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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 recognise an impairment loss in profit or loss to the extent that the carrying
amount of an asset related to contract assets exceeds:
(a) the remaining amount of consideration that the company expects to receive in exchange for
the goods or services to which the asset relates; less
(b) the costs that relate directly to providing those goods or services and that have not been
recognised as expenses.The company shall recognise in profit or loss a reversal of some or all of an impairment loss
previously recognised when the impairment conditions no longer exist or have improved. The
increased carrying amount of the asset shall not exceed the carrying amount that if no
impairment loss had been recognised previously.
(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.Notes to the financial statements Page 33Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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
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:
Notes to the financial statements Page 34Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(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.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:
Notes to the financial statements Page 35Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
- 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.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.Notes to the financial statements Page 36Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(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;
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.Notes to the financial statements Page 37Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(2) Lease liabilities
At the beginning of the lease term the company recognizes lease liabilities for leases other
than short-term leases and leases of low-value assets. Lease liabilities are initially measured
based on the present value of the payments that are not paid at that date. Lease payments
include:
1) Fixed payment (including in-substance fixed payment) less any lease incentives receivable;
2) Variable lease payments that depend on an index or a ratio;
3) Amounts expected to be payable by the lease under residual value guarantees;
4) The exercise price of the purchase option if the lease is reasonably certain to exercise that
option;
5) Payments of penalties for terminating the lease if the lease term reflects the lessee exercising
an option to terminate the lease;
The company uses the interest rate implicit in the lease as the discount rate but if the interest
rate implicit in the lease cannot be reasonably determined the company's incremental
borrowing interest rate is used as the discount rate.The company calculates the interest expense of the lease liability during each period of the
lease term according to a fixed periodic interest rate and includes it in the current profit and
loss or the cost of related assets.Variable lease payments that are not included in the measurement of lease liabilities are
included in the current profit and loss or the cost of related assets when they occur.After the start of the lease term if the following circumstances occur the company 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.Notes to the financial statements Page 38Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(3) Short-term leases and low-value asset leases
The company chooses not to recognize right-of-use assets and lease liabilities for short-term
leases and low-value asset leases and calculates the relevant lease payments in the current
profit and loss or related asset costs on a straight-line basis during each period of the lease term.Short-term lease refers to a lease that does not include purchase options for a lease period not
exceeding 12 months at the beginning of the lease period. Low-value asset leasing refers to a
lease with a lower value when a single leased asset is a new asset. If the company subleases or
expects to sublease the leased assets the original lease is not a low-value asset lease.
(4) Lease modifications
The lease shall account for a lease modification as a separate lease if both:
The modification increases the scope of the lease by adding the right to use one or more
underlying assets; and
the consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope and any appropriate adjustment to that stand-alone price to
reflect the circumstances of the particular contract.For a lease modification that is not accounted for as a separate lease at the effective date of the
lease modification a lessee shall allocate the consideration in the modified contract determine
the lease term of the modified lease and remeasure the lease liabilities by 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
Notes to the financial statements Page 39Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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
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
Notes to the financial statements Page 40Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
modification.* If the change takes effect on the lease start date the lease will be classified as a financiallease 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 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
Notes to the financial statements Page 41Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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 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
Notes to the financial statements Page 42Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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
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
Notes to the financial statements Page 43Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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 downturn the expected increase in unemployment rate changes in the
external market environment technological environment and customer conditions. The
Company regularly monitors and reviews assumptions related to the calculation of expected
credit losses.
2. Inventory ImpairmentAs mentioned in note 3 (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 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
Notes to the financial statements Page 44Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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 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) Change of significant accounting policy and accounting estimate
1. Change of major accounting policy during this reporting period
(1) Implementation of Interpretation of Enterprise Accounting Standards No. 17
The Ministry of Finance issued the "Interpretation of the Enterprise Accounting Standards
No. 17 " (Accounting [2023] No. 21 hereinafter referred to as "Interpretation No. 17") on
Notes to the financial statements Page 45Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
October 25 2023. The Company will implement the "Classification of Current Liabilities
and Non-Current Liabilities" "Disclosure of Supplier Financing Arrangements" and
"Accounting Treatment of Sale and Leaseback Transactions" from January 1 2024. The
aforementioned regulations have no significant impact on the Company's financial reports.
2. Change of accounting estimate during the reporting period
There is no significant changes in accounting estimates during the reporting period.
4. Taxes
(1) Major type of taxes and corresponding tax rates
Tax Taxation Method Tax Rate
The balance of output VAT calculated
based on product sales and taxable
Value-added Tax (VAT) services revenue in accordance with the 6% 9% 13%
tax laws after subtracting the deductible
input VAT of the period
Based on VAT and business tax actually
City maintenance and construction tax 5% 7%
paid
Enterprise income tax See the table below for details
Notes to taxpayers with different corporate income tax rates:
Name of the taxpayers Income tax rate (5%)
Bengang Steel Plates Co. Ltd 25
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
Notes to the financial statements Page 46Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(2) Tax Preference
1. Benxi Posco Cold-Rolled Sheet Co. Ltd. the subsidiary of the Company has obtained the
High-tech Enterprise Certificate certificate number: GR202321001624; valid from
December 20 2023 to December 20 2026. Benxi Steel Posco Cold-Rolled Sheet Co. Ltd.pays corporate income tax at a reduced tax rate of 15%.
2. On December 30 2021 the Ministry of Finance and the State Administration of Taxation
issued the "Announcement on Improving the Value-Added Tax Policy for Comprehensive
Utilization of Resources" (Announcement No. 40 of the Ministry of Finance and the State
Administration of Taxation in 2021). The announcement will take effect on March 1 2022.The original "Notice of the Ministry of Finance and the State Administration of Taxation on
Issuing the "Catalogue of Value-Added Tax Preferential Policies for Comprehensive
Utilization of Resources Products and Services" (Finance and Taxation [2015] No. 78) will
be abolished at the same time except for "technical standards and related conditions". The
electricity and heat produced and sold by the Energy Development Branch of Benxi Iron and
Steel Co. Ltd. a branch of the Company are items listed in the "Catalogue of Value-Added
Tax Preferential Terms for Comprehensive Resource Utilization Products and Services" and
enjoy the value-added tax refund policy.Notes to the financial statements Page 47Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
5. Notes to the consolidated financial statements
(1) Cash at bank and on hand
Items 2024/06/30 2023/12/31
Cash on hand
Cash at bank 1182269402.52 1184774971.52
Other monetary funds 810054824.11 1009879189.82
Total 1992324226.63 2194654161.34
Including：Total amount deposited abroad
Notes: As at 30 June 2024 bank acceptance deposit of RMB 810054824.11 was not recognized as cash
and cash equivalents in the cash flow statement.
(2) Notes receivable
1. Notes receivable disclosed by category
Items 2024/06/30 2023/12/31
Bank acceptance bill 398864911.20 367402376.67
Commercial acceptance bill 384535985.00 86157718.82
Total 783400896.20 453560095.49
Notes to the financial statements Page 48Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
2. Notes receivable disclosed by bad debt accrual method
2024/06/302023/12/31
Provision for bad
Carrying amount Provision for bad debts Carrying amount
Items debts
Book value Book value
Bad debts Percentage Bad debts
Amount Percentage (%) Amount Amount Amount
ratio (%) (%) ratio (%)
Provision for bad
debts individually
Provision for bad
debts based on
783400896.20100.00783400896.20453560095.49100.00453560095.49
portfolio of credit
risk characteristics
Total 783400896.20 100.00 783400896.20 453560095.49 100.00 453560095.49
Notes to the financial statements Page 49Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Provision for bad debts based on portfolio of credit risk characteristics
Portfolio items:
2024/06/30
Items
Notes receivable Provision for bad debts Bad debts ratio (%)
Bank acceptance bill 398864911.20
Commercial acceptance bill 384535985.00
Total 783400896.20
3. The pledged acceptance bill at the year-end
Items Notes receivable pledged at the end of period
Bank acceptance bill 383067330.50
Total 383067330.50
4. The amount of notes receivable endorsed over or discounted but not yet matured at the year-end
Amount terminated at the Amount was not terminated
Items
end of the period at the end of the period
Bank acceptance bill 7259929534.66 11363054.21
Commercial acceptance bill 9435985.00
Total 7259929534.66 20799039.21
(3) Accounts receivable
1. Accounts receivable disclosed by aging
Items 2024/06/30 2023/12/31
Within 1 year (inclusive) 1070054692.28 1047842246.01
1-2 years (inclusive) 98498849.30 322945580.33
2-3 years (inclusive) 208590086.46 647190.77
3-4 years (inclusive) 561144.95 5690114.98
4-5 years (inclusive) 5592931.88 300882005.30
over 5 years 373852067.33 98724184.94
Notes to the financial statements Page 50Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items 2024/06/30 2023/12/31
Total 1757149772.20 1776731322.33
Less: Provision for bad debts 430111095.35 448198723.86
Total 1327038676.85 1328532598.47
Notes to the financial statements Page 51Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
2. Accounts receivable disclosed by the bad debt accrual method
2024/06/302023/12/31
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 354309554.42 20.16 354309554.42 100.00 353419325.80 19.89 353419325.80 100.00
individually
Tested for
impairment 1402840217.78 79.84 75801540.93 5.40 1327038676.85 1423311996.53 80.11 94779398.06 6.66 1328532598.47
by portfolio
Include:
Portfolio 1:
Aging 1402840217.78 79.84 75801540.93 5.40 1327038676.85 1423311996.53 80.11 94779398.06 6.66 1328532598.47
portfolio
Total 1757149772.20 100.00 430111095.35 1327038676.85 1776731322.33 100.00 448198723.86 1328532598.47
Notes to the financial statements Page 52Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Significant accounts receivables tested for impairment individually:
2024/06/302023/12/31
Bad
Company Carrying Provision for debts Carrying Provision for
Reason
amount bad debts
amount bad debts ratio
(%)
Benxi Nanfen Xinhe
Metallurgical Furnace 48196244.68 48196244.68 100.00 Discontinued 48196244.68 48196244.68
Material Co. Ltd
Brilliance
Automotive Group 306113309.74 306113309.74 100.00 Bankruptcy 305223081.12 305223081.12
Holdings Co. Ltd.Total 354309554.42 354309554.42 353419325.80 353419325.80
Provision for bad debts based on portfolio of credit risk characteristics
Provision for bad debts by portfolio: Aging analysis
2024/06/30
Items
Account Receivable Provision for bad debts Bad debt ratio（%）
Within 1 year
1244814190.6012448141.921.00
(inclusive)
1-2 years
95955967.709595596.7710.00
(inclusive)
2-3 years
10390321.552078064.3120.00
(inclusive)
3-4 years
561144.95561144.95100.00
(inclusive)
4-5 years
748799.87748799.87100.00
(inclusive)
over 5 years 50369793.11 50369793.11 100.00
Total 1402840217.78 75801540.93
3. The provision for bad debts accrued reversed or recovered in the current period
Notes to the financial statements Page 53Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Changes during the current period
Write-off
Items 2023/12/31 Reversed or Other 2024/06/30
Accrued or Write-
recovered changes
back
Provision
for bad 448198723.86 7005291.06 25092919.57 430111095.35
debts
Total 448198723.86 7005291.06 25092919.57 430111095.35
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 method provision and its
reasonableness
Brilliance
Debt restructuring
Automotive Group 25092919.57 repay the debt bank deposit
agreements
Holdings Co. Ltd.
4. Top five debtors and contract assets at the end of the period
Accounts Contract
Percentag Provision for
Company receivable as at assets at Total
e(%) bad debts
2024/06/302024/06/30
Bengang Group
International
893836130.28893836130.2850.878938361.30
Economy and
Trade Co. Ltd.Brilliance Auto
Group Holding 306113309.74 306113309.74 17.42 306113309.74
Co. Ltd.Shenzhen CIMC
Tongchuang 119995203.37 119995203.37 6.83 1199952.03
Supply Chain Co.Notes to the financial statements Page 54Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Accounts Contract
Percentag Provision for
Company receivable as at assets at Total
e(%) bad debts
2024/06/302024/06/30
Liaoning North
Coal Chemical
90698309.1990698309.195.164789690.91
Industry (Group)
Co. Ltd.Benxi Steel
Refractory 48417907.79 48417907.79 2.76 4085640.54
Material Co. Ltd.
1459060860.31459060860.3
Total 83.04 325126954.52
77
(4) Accounts receivable financing
1. Accounts receivable financing by category
Items 2024/06/30 2023/12/31
Notes Receivable 191450087.40 806822622.43
Total 191450087.40 806822622.43
(5) Prepayments
1. Prepayments disclosed by aging
2024/06/302023/12/31
Aging Percentage Percentage
Amount Amount
(%)(%)
Within 1 year
498392587.6587.84647043310.2795.88
(inclusive)
1-2 years
49149774.878.6622062469.173.27
(inclusive)
2-3 years
16643813.882.933389343.940.50
(inclusive)
Over 3 years 3177304.47 0.56 2377875.91 0.35
Notes to the financial statements Page 55Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
2024/06/302023/12/31
Aging Percentage Percentage
Amount Amount
(%)(%)
Total 567363480.87 99.99 674872999.29 100.00
Notes: As of June 30 2024 there were no outstanding prepayments over 1 year.
2. Top five prepaid companies at the end of the period
Name of the company 2024/06/30 Percentage (%)
Shanxi Coking Coal Group Co. Ltd. 134314004.36 23.67
Shanxi Coking Coal Energy Group Co. Ltd. 63103944.72 11.12
China Railway Shenyang Group Co. Ltd. Shenyang
57110096.0910.07
Freight Center
Shanxi Jiao Hua Co. Ltd. 47665209.92 8.40
Shanxi Coking Coal Group Co. Ltd. 45016096.88 7.93
Total 347209351.97 61.19
(6) Other receivables
Items 2024/06/30 2023/12/31
Interest receivables
Dividend receivables
Other receivables 243424884.42 318793157.58
Total 243424884.42 318793157.58
1. Other receivables
(1) Other receivables disclosed by aging
Items 2024/06/30 2023/12/31
Within 1 year (inclusive) 211555998.22 288095370.24
1-2 years (inclusive) 9012745.09 35231832.41
2-3 years (inclusive) 35141930.92 6078775.88
3-4 years (inclusive) 1045234.49 3125628.24
Notes to the financial statements Page 56Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items 2024/06/30 2023/12/31
4-5 years (inclusive) 3125628.24 229028.24
over 5 years 60704095.76 61270101.82
Subtotal 320585632.72 394030736.83
Less: Provision for bad debts 77160748.30 75237579.25
Total 243424884.42 318793157.58
Notes to the financial statements Page 57Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(2) Disclosed by bad debt accrual method
2024/06/302023/12/31
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
18245545.945.6918245545.94100.0018245545.944.6318245545.94100.00
debts individually
Provision for bad
debts based on 302340086.78 94.31 58915202.36 19.49 243424884.42 375785190.89 95.37 56992033.31 15.17 318793157.58
portfolio
Include:
Aging portfolio 302003576.79 58915202.36 243088374.43 375513463.19 56992033.31 318521429.88
other portfolio 336509.99 336509.99 271727.70 271727.70
Total 320585632.72 100.00 77160748.30 243424884.42 394030736.83 100.00 75237579.25 318793157.58
Notes to the financial statements Page 58Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Significant other receivables tested for impairment individually:
2024/06/302023/12/31
Bad
Company Carrying Provision for debts Carrying Provision for
Reason
amount bad debts ratio amount bad debts
(%)
Benxi Iron
and Steel
(Group) No.Bankruptcy
12504978.5912504978.59100.0012504978.5912504978.59
3 liquidation
Architectural
Engineering
Co. Ltd.Benxi Iron
and Steel
(Group) No.Bankruptcy
1 3247307.07 3247307.07 100.00 3247307.07 3247307.07 liquidation
Architectural
Engineering
Co. Ltd.Xuzhou
Jinshanqiao
Development Irrecoverable
5670.775670.77100.005670.775670.77
payment
Zone Metal
Material
Corporation
Xuzhou
Railway Irrecoverable
6567.206567.20100.006567.206567.20
payment
Material
Factory
Harbin Xuda Irrecoverable
10644.7210644.72100.0010644.7210644.72
payment
Company
Notes to the financial statements Page 59Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
2024/06/302023/12/31
Bad
Company Carrying Provision for debts Carrying Provision for
Reason
amount bad debts ratio amount bad debts
(%)
Jining
Economy
and Trade Irrecoverable
12831.8112831.81100.0012831.8112831.81
payment
Joint
Development
Corporation
Zhangdian
Iron and
Irrecoverable
15167.7815167.78100.0015167.7815167.78
Steel payment
Headquarter
Factory
Zibo
Zhouchun
Irrecoverable
Welfare 15666.59 15666.59 100.00 15666.59 15666.59 payment
Spring
Factory
Weifang
Head Office
Irrecoverable
25179.8425179.84100.0025179.8425179.84
of payment
Constructive
Materials
Jiaozhou
Zhenxing
Metal Irrecoverable
411891.80411891.80100.00411891.80411891.80
payment
Product
Plant
(Weifang)
Notes to the financial statements Page 60Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
2024/06/302023/12/31
Bad
Company Carrying Provision for debts Carrying Provision for
Reason
amount bad debts ratio amount bad debts
(%)
Historical Irrecoverable
242845.73242845.73100.00242845.73242845.73
payment
debts
Jiaozhou
Zhenxing
Irrecoverable
Metal 32989.12 32989.12 100.00 32989.12 32989.12 payment
Product
Plant
Tai'an
Taishan
Metal Irrecoverable
41145.7541145.75100.0041145.7541145.75
payment
Constructive
Material
Company
Xuzhou
Guanghuan
Irrecoverable
49016.7349016.73100.0049016.7349016.73
Steel payment
Pipeline
Company
Guan County
Cold Rolling
Plate and Irrecoverable
52602.2552602.25100.0052602.2552602.25
payment
Strip
Headquarter
Factory
Weifang
Nonggao Irrecoverable
68000.0068000.00100.0068000.0068000.00
payment
Industry and
Trade Center
Notes to the financial statements Page 61Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
2024/06/302023/12/31
Bad
Company Carrying Provision for debts Carrying Provision for
Reason
amount bad debts ratio amount bad debts
(%)
Benxi
Fangyuan
Irrecoverable
80000.0080000.00100.0080000.0080000.00
Provition payment
Management
Agent
Weifang
Sanfeng
Irrecoverable
Steel 81657.46 81657.46 100.00 81657.46 81657.46 payment
Pipeline Co.Ltd.Qingdao
Liduo
Irrecoverable
133163.36133163.36100.00133163.36133163.36
Economy payment
and Trade
Co. Ltd.Weifang
Mingxin
Irrecoverable
Trading and 197900.80 197900.80 100.00 197900.80 197900.80 payment
Supply
Company
Gao Irrecoverable
204294.00204294.00100.00204294.00204294.00
payment
Pengquan
Zhangdian
Jinkun Steel
Irrecoverable
Plate 231910.95 231910.95 100.00 231910.95 231910.95 payment
Management
Agent
Notes to the financial statements Page 62Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
2024/06/302023/12/31
Bad
Company Carrying Provision for debts Carrying Provision for
Reason
amount bad debts ratio amount bad debts
(%)
Harbin Band Irrecoverable
403559.70403559.70100.00403559.70403559.70
payment
Steel Factory
Bengang
Group
International Irrecoverable
6617.526617.52100.006617.526617.52
payment
Economy
and Trade
Co. Ltd.Changchun
Kanghong
Irrecoverable
Metal 85277.50 85277.50 100.00 85277.50 85277.50 payment
Material Co.Ltd.China
Railway
Shenyang
Bureau Irrecoverable
53712.4253712.42100.0053712.4253712.42
payment
Group Co.Ltd. Benxi
Freight
Center
FAW Jiefang
Automobile
Irrecoverable
Co. Ltd. 24648.73 24648.73 100.00 24648.73 24648.73 payment
Procurement
Department
Jilin Irrecoverable
297.75297.75100.00297.75297.75
payment
Province
Notes to the financial statements Page 63Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
2024/06/302023/12/31
Bad
Company Carrying Provision for debts Carrying Provision for
Reason
amount bad debts ratio amount bad debts
(%)
Jinghai
Material
Distribution
Co. Ltd
Total 18245545.94 18245545.94 18245545.94 18245545.94
Provision for bad debt by portfolio of credit risk characteristics:
Portfolio accrual item: Aging portfolio
2024/06/30
Items
Amount Provision for bad debts Percentage（%）
Within 1 year
211219488.232112194.881.00
(inclusive)
1-2 year (inclusive) 6519484.81 651948.48 10.00
2-3 year (inclusive) 35141930.92 7028386.17 20.00
3-4 year (inclusive) 400236.49 400236.49 100.00
4-5 year (inclusive) 3125628.24 3125628.24 100.00
Aver 5 years 45596808.10 45596808.10 100.00
Total 302003576.79 58915202.36
(3) Information of provision for bad debts
Stage one Stage two Stage three
lifetime expected lifetime expected
12-month
Provision for bad debts credit losses credit losses Total
expected credit
(credit impairment (credit impairment has
losses
has not occurred) already occurred)
Beginning balance 2864723.85 4609838.82 67763016.58 75237579.25
Notes to the financial statements Page 64Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Stage one Stage two Stage three
lifetime expected lifetime expected
12-month
Provision for bad debts credit losses credit losses Total
expected credit
(credit impairment (credit impairment has
losses
has not occurred) already occurred)
Beginning balance during current
-651948.48251711.99400236.49
period
--Transfer to the second stage -651948.48 651948.48
--Transfer to the third stage -400236.49 400236.49
--Write-back to the second stage
--Write-back to the first stage
Accrual for the current period -100580.49 2818783.84 -795034.30 1923169.05
Reversal during the current period
Write-back of the current period
Write-off during the current period
Other changes
Ending balance 1460246.40 7932046.64 67768455.26 77160748.30
(4) Information of provision reversal or recovery of bad debts of current period
Changes during the current period
Write-
Reversal
Items 2023/12/31 back or 2024/06/30
Accrual or Others
write-
recovered
off
Bad debt
provision
for other 75237579.25 1923169.05 77160748.30
receivables
Total 75237579.25 1923169.05 77160748.30
(5) Other receivables disclosed by nature
Notes to the financial statements Page 65Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Nature 2024/06/30 2023/12/31
Compensation for the
199177700.00212242400.00
“Living Showbelt” project
Current Account 117082895.23 176055536.99
Others 4325037.49 5732799.84
Total 320585632.72 394030736.83
(6) Top five other receivable by pooling owing party at the end of the reporting period
Percentage
Provision for
Nature or of total other
Company Amount Aging bad debts at
content receivables
2024/06/30
(%)
Compensation
Benxi Xihu for the
within 1District “Living 199177700.00 62.13 1991777.00yearGovernment Showbelt”
project
Benxi Iron and
Steel (Group)
3-4 years
Third Current
12504978.59 over 3 3.90 12504978.59
construction Account
years
Engineering
Co. Ltd
within 1
Benxi Iron and year 1-2
Current
Steel (Group) 5476979.64 years 1.71 4156527.72
Account
Co. Ltd. over 5
years
Liaoning
Hengtai Heavy Current
3510967.39 1-2 years 1.10 351096.74
Machinery Co. Account
Ltd..Benxi Dongfeng
Lake Steel Current
3478250.07 2-3 years 1.08 695650.01
Resources Account
Utilization Co.Total 224148875.69 69.92 19700030.06
Notes to the financial statements Page 66Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(7) Inventories
1. Inventories disclosed by category
2024/06/302023/12/31
Items
Gross carrying amount Impairment Book value Gross carrying amount Impairment Book value
Raw material and main
4404132619.4156931870.404347200749.014596538313.4556931870.404539606443.05
material
Work in process and self-
made semi-finished 2080826080.59 12076074.97 2068750005.62 1627187498.35 12076074.97 1615111423.38
product
Finished products 1457805042.38 19481223.06 1438323819.32 1558823023.16 5167994.78 1553655028.38
Total 7942763742.38 88489168.43 7854274573.95 7782548834.96 74175940.15 7708372894.81
2. Impairment of inventory and contract assets
Increase Decrease
Category 2023/12/31 Write-back or 2024/06/30
Provision Others Others
write-off
Raw material and main material 56931870.40 56931870.40
Notes to the financial statements Page 67Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Increase Decrease
Category 2023/12/31 Write-back or 2024/06/30
Provision Others Others
write-off
Work in process and self-made semi-
12076074.9712076074.97
finished products
Finished products 5167994.78 14313228.28 19481223.06
Total 74175940.15 14313228.28 88489168.43
Notes to the financial statements Page 68Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(8) Other current assets
Items 2024/06/30 2023/12/31
VAT input tax 108735472.49 88281138.57
Prepaid tax 362947.46 17220232.46
others 33344002.41 52288605.87
Total 142442422.36 157789976.90
Notes to the financial statements Page 69Bengang Steel Plates Co. Ltd.Semi-annual 2024
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 2023/12/31 Comprehensive of Cash 2024/06/30
as of of of recognized Equity Provision Others as of
Income Dividends
2023/12/31 Investment Investment under the Changes 2024/06/30
Adjustment or Profit
equity
method
1．Joint
Venture
2．Associated
Enterprise
Bensteel
Baojin
(Shenyang) 46910346.41 46910346.41
New
Automotive
Notes to the financial statements Page 70Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Increase/decrease
Income or
Impairment loss on Impairment
Other Declaration
provision Addition Reduction investment Other provision
Investees 2023/12/31 Comprehensive of Cash 2024/06/30
as of of of recognized Equity Provision Others as of
Income Dividends
2023/12/31 Investment Investment under the Changes 2024/06/30
Adjustment or Profit
equity
method
Materials
Technology
Co.Subtotal
46910346.4146910346.41
Total
46910346.4146910346.41
Notes to the financial statements Page 71Bengang Steel Plates Co. Ltd.Semi-annual 2024
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 2024/06/30 2023/12/31 other
comprehensive comprehensive comprehensive income through other
comprehensive
income income income comprehensive
income
income
Suzhou Longben
Metal Materials 3930341.27 3930341.27 41361.27
Co. Ltd.Sinosteel
Shanghai Steel
14414693.00
Processing Co.Ltd.Northeast
Special Steel 970532698.56 970532698.56 67203150.44
Group Co. Ltd.Total 974463039.83 974463039.83 41361.27 81617843.44
Notes to the financial statements Page 72Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(11) Fixed assets
1. Fixed assets and Disposal of fixed assets
Items 2024/06/30 2023/12/31
Fixed assets 24878573917.57 25028192964.67
Disposal of fixed assets
Total 24878573917.57 25028192964.67
Notes to the financial statements Page 73Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
2. Details of fixed assets
Furniture
Transportation
Items Buildings Machinery and office Total
equipment and others
equipment
1．Gross carrying amount
（1）31 December 2023 13031421747.35 51512912760.03 399037323.55 198681621.21 65142053452.14
（2）Increase in current period 57782406.88 628914174.75 5662053.10 14119753.29 706478388.02
Including: Purchase 286053.10 286053.10
Transferred from
57657024.07628821321.685376000.0014119753.29705974099.04
construction in progress
Others 125382.81 92853.07 218235.88
（3）Decrease in current period 30976158.83 188875074.34 10056358.13 558524.79 230466116.09
—Including: Disposal or
30976158.83188875074.3410056358.13558524.79230466116.09
scrapped
（4）30 June 2024 13058227995.40 51952951860.44 394643018.52 212242849.71 65618065724.07
2．Total accumulated
depreciation
（1）31 December 2023 6637762628.34 32928064766.56 323798847.36 112924985.39 40002551227.65
Notes to the financial statements Page 74Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Furniture
Transportation
Items Buildings Machinery and office Total
equipment and others
equipment
（2）Increase in current period 106370818.07 705687704.82 5428986.40 11923234.34 829410743.63
—Including: Provision 106370818.07 705687704.82 5428986.40 11923234.34 829410743.63
（3）Decrease in current period 22269734.47 171386048.99 9558370.01 557362.97 203771516.44
—Including: Disposal or
22269734.47171386048.999558370.01557362.97203771516.44
scrapped
（4）30 June 2024 6721863711.94 33462366422.39 319669463.75 124290856.76 40628190454.84
3．Total impairment
（1）31 December 2023 83249262.08 28059997.74 111309259.82
（2）Increase in current period
—Including: Provision
（3）Decrease in current period 7908.16 7908.16
—Including: Disposal or
7908.167908.16
scrapped
（4）30 June 2024 83249262.08 28052089.58 111301351.66
4．Total net book value of fixed
assets
Notes to the financial statements Page 75Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Furniture
Transportation
Items Buildings Machinery and office Total
equipment and others
equipment
（1）30 June 2024 6253115021.38 18462533348.47 74973554.77 87951992.95 24878573917.57
（2）31 December 2023 6310409856.93 18556787995.73 75238476.19 85756635.82 25028192964.67
Notes to the financial statements Page 76Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
3. Fixed assets idled temporarily
Gross carrying Accumulated
Items Impairment Book value Note
amount depreciation
Buildings 111291120.75 66768763.56 41943853.74 2578503.45
Machinery 3034473.01 2388968.64 75666.43 569837.94
Total 114325593.76 69157732.20 42019520.17 3148341.39
4. Fixed assets leased out by operating lease
Items Book value
Buildings 895879.23
5. Fixed assets without property rights certificates at the end of the period
Items Book value Reason
Buildings 2426004556.93 In process
(12) Construction in progress
1. Construction in progress and Construction materials
2024/06/302023/12/31
Total Total
Items Gross carrying Gross carrying
impair Book value impairm Book value
amount amount
ment ent
Construction in
4156908135.684156908135.684307646942.374307646942.37
progress
Project materials 757204.94 757204.94
Total 4156908135.68 4156908135.68 4308404147.31 4308404147.31
2. Details of construction in progress
Notes to the financial statements Page 77Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
2024/06/302023/12/31
Items Total Total
Gross carrying amount impairme Book value Gross carrying amount impairmen Book value
nt t
Special Steel Electric Furnace
1025492952.411025492952.411195585747.241195585747.24
Capacity Replacement Project
Cold Rolling Transformation
641990141.86641990141.86578301217.76578301217.76
Project
Environmental Protection
Renovation of Sheet Raw 460227181.39 460227181.39 452296692.77 452296692.77
Material Plant
Special Steel Rolling Mill
284742386.90284742386.90367831655.88367831655.88
Renovation Project
Environmental Protection
Renovation in No. 2 Coal
257297346.28257297346.28256434251.91256434251.91
Storage Field of Plates Raw
Material Plant
Integration Construction of
Informatization System for
112748748.06112748748.06
Ansteel and Bengang
Recombination
Blocking of ABC and DEF
Stockyard in Plates Iron 99425674.71 99425674.71 99129674.71 99129674.71
Making General Plant
Desulphurization Waste Liquor
Acid Making Project in Plates 78717673.84 78717673.84 78562923.84 78562923.84
Iron Making Plant
Plate No.1 Dry Quenching
System Boosting Modification
41822708.6341822708.6376994180.1476994180.14
and Unit No.34 New
Construction
Steelmaking
1#2#3#7#Converter New
88529471.7988529471.7976798979.9176798979.91
Three Times Dust Removal
System
Notes to the financial statements Page 78Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
2024/06/302023/12/31
Items Total Total
Gross carrying amount impairme Book value Gross carrying amount impairmen Book value
nt t
Centralized Control Project
before Ironmaking of Plates 84842706.03 84842706.03 61969240.03 61969240.03
Iron Making General Plant
1780 Production Line
78531654.0278531654.0258044160.5458044160.54
Upgrading
Flue Gas Desulfurization and
Denitrification Project of 4B
and 5 Furnace Group in 54693576.01 54693576.01 54553821.01 54553821.01
Bengang Plates and Iron
Making General Plant
Plates Energy Centralized
80258847.3480258847.3450276243.3650276243.36
Control Project
Supporting Projects for
Outward Transportation of
Nanfen Pipeline Transported
40637546.5940637546.5937857546.5937857546.59
Mineral Concentrate in
Bengang Plates and Iron
Making General Plant
Improvement of Quality and
Efficiency of 2300 Line in Hot
Continuous Rolling Plant of
Benxi Iron and Steel Co. Ltd. 472621.73 472621.73 32327295.12 32327295.12
( First Phase ) - Layer Cooling
and Upgrading of Secondary
System
Centralized Control Center
before Ironmaking of Plates 32015183.16 32015183.16 31573183.16 31573183.16
Iron Making General Plant
Capacity Replacement Project
of No. 5 Blast Furnace of
Bensteel Ironmaking Plant 42414525.25 42414525.25 31033533.06 31033533.06
(Energy-saving and
Environmental Protection
Notes to the financial statements Page 79Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
2024/06/302023/12/31
Items Total Total
Gross carrying amount impairme Book value Gross carrying amount impairmen Book value
nt t
Renovation of No. 5 Blast
Furnace of Ironmaking Plant of
Bensteel Plate)
Blocking Project for Second
and Third Burning Mixing
27014192.0027014192.0026589400.0026589400.00
Warehouse Recycling
Operation Area
New Construction of 40 000
m3/h Nitrogen Compressors in 28420757.24 28420757.24 25842342.61 25842342.61
Energy General Plant
Renovation of No. 5 RH
Refining in Plates Steel 25772677.77 25772677.77
Making General Plant
Outage for 2300 Line Heating
Furnace in Plates Hot 15281054.86 15281054.86 22388923.72 22388923.72
Continuous Rolling Plant
Capitalized Outage for Roads
17004500.0017004500.0022004500.0022004500.00
in Plates Plant
Bensteel Plate intelligent
41509016.3941509016.3917440916.3917440916.39
factory Project
Renovation of purification and
desulphurisation system of
34205496.1334205496.1323436618.1023436618.10
coking process at the Sheet
Ironmaking Plant
Cold rolling plant (three
colding area) automotive plate 26428760.00 26428760.00 7010000.00 7010000.00
quality improvement
Sheet Energy Control Centre
16164547.5716164547.5715353930.7515353930.75
Unit 33 Relocation Project
Notes to the financial statements Page 80Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
2024/06/302023/12/31
Items Total Total
Gross carrying amount impairme Book value Gross carrying amount impairmen Book value
nt t
Optimisation and upgrading of
logistics in the new Special 16118806.00 16118806.00 11706800.00 11706800.00
Steel District
Intelligent Eco-environmental
Control System for Plate 20309310.40 20309310.40 3700000.00 3700000.00
Company
220kV Substation Project of
18442406.1818442406.18951966.34951966.34
General Energy Plant
Bensteel's steel industry
management and information
technology overall 18767177.36 18767177.36 13240377.36 13240377.36
enhancement supporting
projects
Relocation and Improvement
Project of Hot Repair Position 23628350.00 23628350.00 7708000.00 7708000.00
in Plate Steel Mill (Phase II)
Others 461501563.61 461501563.61 432181394.24 432181394.24
Total 4156908135.68 4156908135.68 4307646942.37 4307646942.37
Notes to the financial statements Page 81Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
3. Changes in important construction projects in the current period
Project
Other cumulative Including： Interest
Transferred to Accumulated
decrease investment Project Interest capitalization
Increase during fixed asset amount of Sources of
Items Budget 2023/12/31 during 2024/06/30 accounted for progress capitalization rate in
current period during current interest funds
current the proportion (%) amount in current
period capitalization
period of the budget current period period (%
(%)
Integration
Construction of
Informatization Loan from
System for 232100000.00 112748748.06 51863186.24 164611934.30 100.00 100.00 7233001.66 853186.24 4.35 financial
Ansteel and institute
Bengang
Recombination
Renovation of
No. 5 RH
Refining in
41330800.00 25772677.77 11518436.32 37291114.09 90.00 96.00 O t h e r s
Plates Steel
Making General
Plant
Special Steel
Electric Furnace
Capacity 1732481000.00 1195585747.24 38608081.75 208700876.58 1025492952.41 89.00 95.00 32840333.57 9809783.28 4.35 Fund raising
Replacement
Project
Cold Rolling Loan from
Transformation 843640000.00 578301217.76 85813824.11 22124900.00 641990141.87 85.00 85.00 29357282.86 10797255.21 4.35 financial
Project institute
Plate No.1 Dry
Quenching 93270000.00 76994180.14 2851243.27 38022714.78 41822708.63 86.00 90.00 O t h e r s
System Boosting
Notes to the financial statements Page 82Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Project
Other cumulative Including： Interest
Transferred to Accumulated
decrease investment Project Interest capitalization
Increase during fixed asset amount of Sources of
Items Budget 2023/12/31 during 2024/06/30 accounted for progress capitalization rate in
current period during current interest funds
current the proportion (%) amount in current
period capitalization
period of the budget current period period (%
(%)
Modification and
Unit No.34 New
Construction
Plate energy
management
center 6# 7#
furnace plate
26500000.00 17976789.00 7447653.00 25424442.00 96.00 100.00 O t h e r s
exchange heat
source efficiency
improvement
project
Special Steel
Loan from
Rolling Mill
734730000.00 367831655.88 21926248.51 105015517.49 284742386.90 88.00 93.00 27340901.77 5257761.16 3.12 financial
Renovation
institute
Project
Improvement of
Quality and
Efficiency of
2300 Line in Hot
Continuous
Rolling Plant of
Benxi Iron and 39200000.00 32327295.12 23926.61 31878600.00 472621.73 83.00 85.00 O t h e r s
Steel Co. Ltd.( First Phase ) -
Layer Cooling
and Upgrading of
Secondary
System
Notes to the financial statements Page 83Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Project
Other cumulative Including： Interest
Transferred to Accumulated
decrease investment Project Interest capitalization
Increase during fixed asset amount of Sources of
Items Budget 2023/12/31 during 2024/06/30 accounted for progress capitalization rate in
current period during current interest funds
current the proportion (%) amount in current
period capitalization
period of the budget current period period (%
(%)
Special Steel
Division
11162885.69 11162885.69 11162885.69 100.00 100.00 O t h e r s
Equipment
Purchase Project
Overhaul project
of No.1 dry
quenching coke 12000000.00 10592603.42 31960.00 8410423.85 2214139.57 89.00 90.00 O t h e r s
of plate
ironmaking plant
Total 2418130914.39 231247445.50 652643408.78 1996734951.11 96771519.86 26717985.89
Notes to the financial statements Page 84Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(13) Right of use assets
1. Right of use assets
Items Land use right Buildings Machinery Total
1. Gross carrying
amount
(1) 31 December 2023 1132274415.17 368465367.56 1500739782.73
(2) Increase in current
280278953.41280278953.41
period
—Addition
—Merging
—Revaluation
—Others 280278953.41 280278953.41
(3) Decrease in current
period
—transfer to PPE
—Disposal
(4) 30 June 2024 1132274415.17 368465367.56 280278953.41 1781018736.14
2．Total accumulated
depreciation
(1) 31 December 2023 119712708.68 61410894.68 181123603.36
(2) Increase in current
19952118.1210235149.143044387.3133231654.57
period
—Provision 19952118.12 10235149.14 3044387.31 33231654.57
(3) Decrease in current
period
—Transfer to
PPE
—Disposal
(4) 30 June 2024 139664826.80 71646043.82 3044387.31 214355257.93
3．Total impairment
(1) 31 December 2023
Notes to the financial statements Page 85Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items Land use right Buildings Machinery Total
(2) Increase in current
period
—provision
(3) Decrease in current
period
—Transfer to
PPE
—Disposal
(4) 30 June 2024
4．Total net book
value
(1) 30 June 2024 992609588.37 296819323.74 277234566.10 1566663478.21
(2) 31 December 2023 1012561706.49 307054472.88 1319616179.37
(14) Intangible assets
1. Details of intangible assets
Items Software Land use right Total
1．Total of original value
（1）31 December 2023 267948.72 336885314.76 337153263.48
（2）Increase
—Purchase
—Internal R&D
—Increase in Mergers
（3）Decrease
—Disposal
—Invalided and derecognized
portion
（4）30 June 2024 267948.72 336885314.76 337153263.48
2．Total Accumulated Amortization
（1）31 December 2023 186634.58 80946192.77 81132827.35
Notes to the financial statements Page 86Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items Software Land use right Total
（2）Increase 13397.45 3368853.18 3382250.63
—Provision 13397.45 3368853.18 3382250.63
（3）Decrease
—Disposal
—Invalided and derecognized
portion
（4）30 June 2024 200032.03 84315045.95 84515077.98
3．Total of Impairment
（1）31 December 2023
（2）Increase
—Provision
（3）Decrease
—Disposal
—Invalided and derecognized
portion
（4）30 June 2024
4．Total of Net book value
（1）30 June 2024 67916.69 252570268.81 252638185.50
（2）31 December 2023 81314.14 255939121.99 256020436.13
(15) Deferred tax asset and deferred tax liability
1. Deferred tax assets before taking into consideration of the balance offsetting
2024/06/302023/12/31
Deductible Deductible
Items Deferred tax Deferred tax
temporary temporary
asset asset
differences differences
Impairment 400948822.34 100212083.01 403698019.09 100549055.02
Fair value through
other comprehensive 81617843.44 20404460.86 81617843.44 20404460.86
income
Lease liability 1644367112.02 411091778.01 1384348462.17 346087115.54
Notes to the financial statements Page 87Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
2024/06/302023/12/31
Deductible Deductible
Items Deferred tax Deferred tax
temporary temporary
asset asset
differences differences
Total 2126933777.80 531708321.88 1869664324.70 467040631.42
2. Deferred tax liabilities before taking into consideration of the balance offsetting
2024/06/302023/12/31
Taxable Taxable
Items Deferred tax Deferred tax
temporary temporary
liabilities liabilities
differences differences
Changes in fair value
of other equity
41361.2710340.3241361.2710340.32
instrument
investments
Right-of-use assets 1566663478.21 391665869.55 1319616179.47 329904044.87
Total 1566704839.48 391676209.87 1319657540.74 329914385.19
3. Unrecognized deferred tax assets
Items 2024/06/30 2023/12/31
Deductible temporary differences 306113541.40 305223483.99
Deductible losses 6019434124.25 4213758736.79
Total 6325547665.65 4518982220.78
4. The deductible loss of unrecognized deferred tax assets due in the following period
Year 30 June 2024 31 December 2023 Notes
Year 2024 12164389.35 12164389.35
Year 2025 8257832.98 8257832.98
Year 2026 6799314.77 6799314.77
Notes to the financial statements Page 88Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Year 30 June 2024 31 December 2023 Notes
Year 2027 1919832999.81 1919832999.81
Year 2028 2367541315.76 2266704199.88
Year 2029 1704838271.58 -
Total 6019434124.25 4213758736.79
(16) Other non-current assets
2024/06/302023/12/31
Items Gross carrying Gross carrying
Impairment Book value Impairment Book value
amount amount
Prepayment
for long- 121903869.78 121903869.78 137933599.61 137933599.61
term assets
Total 121903869.78 121903869.78 137933599.61 137933599.61
Notes to the financial statements Page 89Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(17) Assets with restrictions on ownership or use
2024/06/302023/12/31
Items Type of Type of
Carrying amount Book value Status Carrying amount Book value Status
restriction restriction
Margin for Notes Margin for Notes
Cash at bank and receivable receivable、
810054824.11810054824.111009879189.821009879189.82
on hand Margin for letter Margin for letter
of credit of credit
Notes receivable 383067330.50 383067330.50 Pledged 218427117.76 218427117.76 pledged
Total 1193122154.61 1193122154.61 1228306307.58 1228306307.58
Notes to the financial statements Page 90Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(18) Short-term loans
1. Classification of short-term loans
Items 2024/06/30 2023/12/31
Pledge loans
Mortgage loans
Guaranteed loans
Credit loans 495000000.00 300000000.00
Discounted unexpired bills 730592.00 28000000.00
Total 495730592.00 328000000.00
(19) Notes payable
Items 2024/06/30 2023/12/31
Commercial acceptance bill 512109059.19 463403421.74
Bank acceptance bill 9506031958.09 8601590577.15
letter of credit 1541716550.34 1300000000.00
Total 11559857567.62 10364993998.89
There is no short-term loans that were overdue at the end of the reporting period.
(20) Accounts payable
1. Accounts payable disclosed by category
Items 2024/06/30 2023/12/31
Within 1 year (inclusive) 2068453035.18 2782628881.51
1-2 year (inclusive) 386521195.69 9101689.71
2-3 year (inclusive) 7418840.63 7414901.65
Over 3 year 14002982.64 10289787.90
Total 2476396054.14 2809435260.77
2. Significant accounts payable aging over one year
Notes to the financial statements Page 91Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items 2024/06/30 Reasons
Henan Weihua Heavy Machinery Co. Not yet eligible for
6829683.84
Ltd. settlement
Dalian Huarui Heavy Industry Group Not yet eligible for
5870242.00
Co. Ltd. settlement
Total 12699925.84
(21) Contract liabilities
1. Details of contract liabilities
Items 2024/06/30 2023/12/31
Payment received in advance and labor
2925386458.143302218364.90
costs
Others 890227.48
Total 2925386458.14 3303108592.38
(22) Employee benefits payable
1. Employee benefits payable
Items 2023/12/31 Increase Decrease 2024/06/30
Short-term employee
1175970.83878644448.54878737354.051083065.32
benefits
Post-employment
benefits - defined 134124608.30 134124608.30
contribution plans
Termination benefits 28762172.65 28762172.65
Other benefits due
within one year
Others
Total 1175970.83 1041531229.49 1041624135.00 1083065.32
2. Short-term employee benefits
Notes to the financial statements Page 92Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items 2023/12/31 Increase Decrease 2024/06/30
(1) Salary bonus
623422824.80623422824.80
allowance and subsidy
(2) Employee welfare 82505854.77 82505854.77
(3) Social Insurance 74570098.59 74570098.59
Including: Medical
55241262.9255241262.92
insurance
Work injury
17024055.6717024055.67
insurance
Maternity
2304780.002304780.00
insurance
(4) Housing 81980838.00 81980838.00
(5) Union funds and staff
1175970.8312663313.0912756218.601083065.32
education fee
(6) Short-term compensated
absences
(7) Short-term profit -
sharing scheme
(8) Other short-term
benefits (Health care labor
3501519.293501519.29
insurance temporary
employment)
Total 1175970.83 878644448.54 878737354.05 1083065.32
3. Defined contribution plans
Items 2023/12/31 Increase Decrease 2024/06/30
Basic pension fund 104790953.08 104790953.08
Unemployment insurance 3275218.58 3275218.58
Annuity 26058436.64 26058436.64
Total 134124608.30 134124608.30
(23) Current tax liabilities
Notes to the financial statements Page 93Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items 2024/06/30 2023/12/31
Value-added tax 7638735.14 7969729.86
Corporate income tax 11854155.78 16637900.58
City maintenance and construction tax 491284.32 526991.99
House property tax 4202867.37 3997351.10
Land use right tax 1088809.99 1088809.99
Individual income tax 1092281.46 2427153.14Educational surcharges（including
350917.37376422.86local Educational surcharges）
Others 14326468.50 22378599.59
Total 41045519.93 55402959.11
(24) Other payables
Items 2024/06/30 2023/12/31
Interest payables
Dividends payables
Other payables 1291824477.57 1659284531.06
Total 1291824477.57 1659284531.06
1. Other payables
(1) Other payables disclosed by nature
Items 2024/06/30 2023/12/31
Deposit 639292.00 679292.00
Margin 335475533.08 328420047.69
Accounts 950613256.48 1317921724.74
Others 5096396.01 12263466.63
Total 1291824477.57 1659284531.06
(2) Significant other payables aged over one year
Notes to the financial statements Page 94Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items 2024/06/30 Reasons
Ansteel Group Engineering Technology Co.
22549189.37 unsettled
Ltd.
(25) Non-current liabilities due within one year
Items 2024/06/30 2023/12/31
Long-term loans due within one year 408685967.20 562310473.60
Bond payables due within one year 81650008.44
Long-term payables due within one year
Leas liability due within one year 65801328.23 41921209.72
Total 474487295.43 685881691.76
(26) Other current liabilities
Items 2024/06/30 2023/12/31
Output tax to be transferred 334009488.97 392122093.59
Total 334009488.97 392122093.59
(27) Long-term loans
Items 2024/06/30 2023/12/31
Pledged loans
Mortgage loan
Guaranteed loans
Credit loans 2319589918.00 1723726700.80
Total 2319589918.00 1723726700.80
(28) Bonds payable
1. Bonds payable disclosed by category
Items 2024/06/30 2023/12/31
Convertible Bond 5522410434.46 5451381676.38
Notes to the financial statements Page 95Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items 2024/06/30 2023/12/31
Total 5522410434.46 5451381676.38
Notes to the financial statements Page 96Bengang Steel Plates Co. Ltd.Semi-annual 2024
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)
Balance at the Interest Premium and Balance at the
Issue Term to Issuance Current Repayment in Default
Items Face value end of the accrued at discount end of the
date maturity amount issue this period or not
previous year face value amortization current period
BengangConverti 29th
ble Bond (Bond 6800000000.00 June 6 years 6800000000.00 5451381676.38 - 81650255.46 71034282.04 81655779.42 5522410434.46 No
code:127018) 2020
Total 6800000000.00 5451381676.38 81650255.46 71034282.04 81655779.42 5522410434.46
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 2024 to June 30 2024 an aggregate of RMB7000.00 of the convertible bonds were converte d into 1771.00 common
stock. Among them:
In the first quarter of 2024 the Bengang convertible bonds were reduced by RMB7000.00 (70 units) due to the conversion and the number of shares converted
was 1771.00 shares and the conversion price was RMB3.95 per share;
As of June 30 2024 the remaining amount of the face value of the convertible bonds was RMB 5631017100.00 Yuan (56310171.00 sheets).Notes to the financial statements Page 97Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(29) Lease liabilities
Items 2024/06/30 2023/12/31
Lease payments 2480710302.86 2098254018.65
Less: Unrealized financing expenses 836223979.34 713905556.48
Reclassified to non-current liabilities
65801328.2341921209.72
within one year
Total 1578684995.29 1342427252.45
(30) Deferred income
Items 2023/12/31 Increase Decrease 2024/06/30 Reason
Government
136084955.18100000.0014369000.00121815955.18
subsidy
Total 136084955.18 100000.00 14369000.00 121815955.18
Notes to the financial statements Page 98Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Transfer to non- Related to
Offsetting
Transfer to Other
Items Increase operating cost or assets or
2023/12/31 other income changes 2024/06/30
income expenses income
Research and Development of High-
strength Steel for the Third Generation 580000.00 290000.00 290000.00 Assets
of Automobiles
Desulfurization and Denitrification
Project of Coal-fired Boiler in High-
1800000.00 300000.00 1500000.00 Assets
pressure Workshop of Bengang Power
Plant
Advanced Treatment Project of Carbon
Fiber Wastewater in Dongfeng Plant 3800000.00 950000.00 2850000.00 Assets
Area of Plate Coking Plant
Second Sintering Finishing Dust
Removal Ultra-low Emission 820000.00 205000.00 615000.00 Assets
Reconstruction Project
Converter Gas Recovery Efficiency
Improvement Project for Plate Material 9680000.00 1210000.00 8470000.00 Assets
Area
Central environmental protection award
84352000.00 10544000.00 73808000.00 Assets
fund
2021 Intellectual Manufacturing Strong
3840000.00 480000.00 3360000.00 Assets
Province Special Fund
2020 Ecological Civilization
Construction Special Project (Special
20000000.00 20000000.00 Assets
Steel Electric Furnace Upgrading
Project)
2021 Manufacturing Strong Province
8100000.00 390000.00 7710000.00 Assets
Special Fund Project
Notes to the financial statements Page 99Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statementsGovernment grant for “Liaoning
236500.00 236500.00 AssetsRevitalization Talent Plan”
2022 Provincial Science and
Technology Department Liaoning
28400.00 28400.00 Assets
Provincial Natural Science Foundation
Program Project Section
Design of Rare Earth Steel
Metallurgical Slag System and Research 317349.00 317349.00 Assets
on Its Physicochemical Properties
2021 Municipal Skilled Master
77219.45 77219.45 Income
Workstation Fee
Study on the Mechanism and Control of
the Effect of Rare Earth Oxysulfides on 122220.20 122220.20 Income
the Plasticizability of Automotive Steel
2021 Benxi Experts and Talents
5000.00 5000.00 Income
Interaction with Enterprises Project
2019 Municipal Master Skill
69500.19 69500.19 Income
Workstation Fee
2018 Municipal Master Skill
58766.34 58766.34 Income
Workstation Fee
Liaoning Province "Hundred
Thousand Thousand Thousand Talents 220000.00 220000.00 Income
Project" funding project in 2018
Provincial Science and Technology
Department National Natural Science 334000.00 334000.00 Income
Foundation Committee
2019 Provincial Skilled Master
200000.00 200000.00 Income
Workstation Fee
2020 Provincial Skilled Master
100000.00 100000.00 Income
Workstation Fee
Notes to the financial statements Page 100Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Fundamental Research on New
Technology of Composite Iron Coke
168000.00 168000.00 Income
Low Carbon Ironmaking Furnace
Charge
The Second Batch of 2021 Liaoning
Funds on Central Government Guiding
300000.00 300000.00 Income
the Development of Local Science and
Technology
2022 Digital Liaoning Intellectual
300000.00 300000.00 Income
Manufacturing Strong Province
Municipal Enterprise Operation Class
Patent Navigation Project Funding 200000.00 200000.00 Income
Grant
Genetic Engineering and Artificial
Intelligence Design of Aviation Critical 376000.00 376000.00 Income
Materials (Research Institute)
2022 Provincial Skilled Master
100000.00 100000.00 Income
Workstation Fee
Total 136084955.18 100000.00 - 14369000.00 - - 121815955.18
Notes to the financial statements Page 101Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(31) Share capital
Increase/decrease (+ - )
Issuin
Transferred
Items 2023/12/31 g of Bonus 2024/06/30
from Others Subtotal
new shares
reserves
share
Capital shares 4108219302.00 1771.00 1771.00 4108221073.00
Note: The decrease was due to the convertible bonds issued by the Company were converted
into 1771.00 shares of common stock during the period and the remaining balance of the face
value of the Company's convertible bonds as of June 30 2024 was RMB5631017100.00 Yuan
(56310171.00 units). For details please refer to Note 5. (28) Bonds payable.
Notes to the financial statements Page 102Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(32) Other equity instruments
1. Changes in financial instruments such as preferred stocks and perpetual bonds issued at the end of the period
2023/12/31 Increase Decrease 2024/06/30
Items
Number Book value Number Book value Number Book value Number Book value
Convertible corporate
56310241.00947858134.16--70.001424.9756310171.00947856709.19
bonds
Total 56310241.00 947858134.16 - - 70.00 1424.97 56310171.00 947856709.19
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 RMB7000.00 (70 units) and the remaining balance of the face value of the convertible bonds as of June 30 2024 was RMB5631017100.00 Yuan (56310171.00
sheets). For details please refer to Note 5. (28) Bonds payable.Notes to the financial statements Page 103Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(33) Capital reserves
Items 2023/12/31 Increase Decrease 2024/06/30
Capital premium
13156308402.105177.9313156313580.03
over par value
Other capital
115917468.82115917468.82
reserves
Total 13272225870.92 5177.93 13272231048.85
Notes: The increase was due to the conversion of A-share convertible bonds issued by the
Company into A-share common stock during the period as described in Note 5 (28) Bonds
payable.Notes to the financial statements Page 104Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(34) Other comprehensive income
Current period
Less: amount
Income after
recognized in Income after
Amounts tax
OCI in the tax Less: transfer
Items 2023/12/31 before attributable to 2024/06/30
previous period Less: income tax attributable to to retain
corporate non-
transfer to PL owners of the earnings
income tax controlling
in current Company
interests
period
1．Items can not be reclassified
-50371341.88-50371341.88
into profit or loss.including: Remeasurement of
defined benefit plans of changes
Other comprehensive
income under the equity method
cannot be reclassified into profit
or loss
Notes to the financial statements Page 105Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Current period
Less: amount
Income after
recognized in Income after
Amounts tax
OCI in the tax Less: transfer
Items 2023/12/31 before attributable to 2024/06/30
previous period Less: income tax attributable to to retain
corporate non-
transfer to PL owners of the earnings
income tax controlling
in current Company
interests
period
Changes in fair value of
investments in other equity -50371341.88 -50371341.88
instruments
Changes in fair value of
company's credit risk
2．Items can be reclassified
into profit or loss
Total -50371341.88 -50371341.88
Notes to the financial statements Page 106Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(35) Special Reserves
Items 2023/12/31 Increase Decrease 2024/06/30
Safety production
54843.1536054579.2732159120.033950302.39
cost
Total 54843.15 36054579.27 32159120.03 3950302.39
(36) Surplus Reserves
Items 2023/12/31 Increase Decrease 2024/06/30
Statutory surplus
1195116522.371195116522.37
reserves
Discretionary
reserves
Reserve fund
Enterprise
Development Fund
(EDF)
Others
Total 1195116522.37 1195116522.37
(37) Undistributed Profits
Items Current period Previous period
Before adjustments: undistributed profits at last
-2463133834.65-720559670.73
year-end
Adjustments of the beginning distributed profits
(increase + / decease -)
After adjustments: undistributed profit at this
-2463133834.65-720559670.73
year-beginning
Add: undistributed profit belonging to parent
-1550950137.71-1742574163.92
company
Notes to the financial statements 107Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items Current period Previous period
Less: Statutory surplus reserves
Discretionary reserves
General risk reserves
Common shares dividend payable
Common shares dividend transferred to paid-in
capital
Ending balance of undistributed profits -4014083972.36 -2463133834.65
(38) Operating income and operating cost
1. Operating income and operating cost
Current period Previous period
Items
Revenue Cost Revenue Cost
Principal
27942407986.7428743063625.9030178980302.2130346840599.33
business
Other
422131300.06434178194.37388428902.82367800364.58
business
Total 28364539286.80 29177241820.27 30567409205.03 30714640963.91
2. Details for operating income
Principal business Principal business Other business Other business
Item Revenue Cost Revenue Cost
Classified by business
area
22982790083.4723737449619.00422131300.06434178194.37
Including：Domestic
4959617903.275005614006.90--
Abroad
Classified by the time
27942407986.7428743063625.90422131300.06434178194.37
of commodity transfer
Including: recognize
at a certain point in
time
Notes to the financial statements 108Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Principal business Principal business Other business Other business
Item Revenue Cost Revenue Cost
-Recognize
27942407986.7428743063625.90420272981.66432990677.97
over a certain period
of time
1858318.401187516.40
Total
27942407986.7428743063625.90422131300.06434178194.37
Item
(39) Tax and surcharges
Items Current period Previous period
Environmental tax 10657195.93 9527874.78
City maintenance and construction tax 7179465.72 6576796.79
Educational surcharge 5141768.24 4800732.70
Housing property tax 42403396.66 40884994.48
Land use right tax 6075969.40 6075969.40
Vehicle and vessel tax 24659.44
Stamp duty 30999838.67 30849463.63
Others 14110.89 324845.97
Total 102496404.95 99040677.75
(40) Selling and marketing expenses
Items Current period Previous period
Import and export agency fee 26379873.76 21131652.66
Salary and benefits 36058846.27 37771652.79
Sales service fee 10571474.17 1382736.23
Others 5858248.93 9615841.56
Total 78868443.13 69901883.24
Notes to the financial statements 109Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(41) General and administrative expenses
Items Current period Previous period
Salary and benefits 222695719.15 232474136.03
Repair expense 3878241.83 298281.38
Depreciation 25488252.64 19462599.70
Professional service expenses 10565726.99 6665914.90
IT systems fees 21186116.66 14723225.16
Safety production expenses 13231852.96 36283096.29
Others 54648344.49 29661768.03
Total 351694254.72 339569021.49
(42) Research and development expenses
Items Current period Previous period
Depreciation materials and
36966260.6332990679.09
compensation etc.Total 36966260.63 32990679.09
(43) Financial expenses
Items 2024/06/30 2023/12/31
Interest expenses 192939391.68 234419462.35
including: Interest expenses for lease
liabilities
Less: Interest income 19612598.56 27351519.21
Exchange losses -43562831.57 -49493753.99
Others 5418930.93 3983576.72
Total 135182892.48 161557765.87
Notes to the financial statements 110Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(44) Other income
Previous
Items Current period
period
Research and Development of High-strength Steel for the Third
290000.00290000.00
Generation of Automobiles
Desulfurization and Denitrification Project of Coal-fired Boiler in
300000.00
High-pressure Workshop of Bengang Power Plant
Advanced Treatment Project of Carbon Fiber Wastewater in
950000.00950000.00
Dongfeng Plant Area of Plate Coking Plant
Second Sintering Finishing Dust Removal Ultra-low Emission
205000.00
Reconstruction Project
Plate factory area converter Gas Recovery and Efficiency
1210000.00
Improvement Project
Central Government Environmental Protection Award Fund 10544000.00
2021 Intellectual Manufacturing Strong Province Special Fund 480000.00 205000.00
2021 Intellectual Manufacturing Strong Province Special Fund
390000.00
project
Tax Rebates for Low-growth Businesses from Government 724200.00
2024 Special Incentive Funds for Business Stable development
785500.00
Measures (Q1)
Air Pollution Prevention and Control Funds - Second Burn
300000.00
Finishing Dedusting Ultra Low Emission Retrofit Project
2021 Benxi Pollution Control and Energy Saving and Carbon
Reduction Special Project (Converter Gas Recovery Efficiency 44117.65
Improvement Project)
2019 Municipal Skilled Master Workstation Fee 81.08
Liaoning Province “One Million Talents Project” Funding
50000.00
Program in 2020
Additional tax relief for retired soldiers in 2022 540000.00
Withholding fee income 389899.87 913893.41
VAT tax relief 67802894.08
Notes to the financial statements 111Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Previous
Items Current period
period
Others 225000.00
Total 84071493.95 3518092.14
(45) Investment income
Items Current period Previous period
Income on long-term equity investment by equity method -439659.58
Income on disposal of financial assets holding for trading -294462.57
Gains/loss from Available-for-sale financial assets
-2502067.50
during the holding period
Gain from debt restructuring 694683.35
Others -31605308.28
Total -31605308.28 -2541506.30
(46) Credit impairment loss
Items Current period Previous period
Loss from bad debts of account receivable -18087628.51 -18426234.94
Loss from bad debts of other receivables 1923169.05 35877008.41
Total -16164459.46 17450773.47
(47) Asset impairment loss
Items Current period Previous period
Inventory and contract assets impairment loss 14313228.28 84458260.66
Total 14313228.28 84458260.66
(48) Assets disposal gains
Notes to the financial statements 112Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
The amount recognized in non-
Items Current period Previous period
recurring profit
Disposal gains or
losses arising from
disposal of fixed 10002955.91 10002955.91
assets not classified
for sale
Total 10002955.91 10002955.91
(49) Non-operating income
The amount
Items Current period Previous period recognized in non-
recurring profit
Non-current assets scrapped gains 2969609.64 17095345.19 2969609.64
Liquidated damages 2252849.81 980399.63 2252849.81
Unpayable accounts payable
2447931.60
(Debt liquidation income)
Others 3754417.72 31060871.61 3754417.72
Total 8976877.17 51584548.03 8976877.17
(50) Non-operating expense
Recorded in the
Items Current period Previous period
current period
Non-current assets scrapped
26684793.0348484833.8926684793.03
loss
Penalties and late fees 819442.12 2072844.13 819442.12
Others 71951.36 27649.11 71951.36
Total 27576186.51 50585327.13 27576186.51
Notes to the financial statements 113Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(51) Income tax expenses
1. Income tax expense
Items Current period Previous period
Income tax payable for the current year 37006436.45 46665568.90
Adjustment of deferred income tax -2905865.78 -13473858.06
Total 34100570.67 33191710.84
2. Accounting profit and income tax expense adjustment process
Items Current period
Total profit -1472189725.96
Income tax expense calculate according to the official or applicable tax
-368047431.49
rate
Effect of different tax rates applied by subsidiaries -20834895.35
Effect of adjustment of the income tax expense of prior period -7776343.01
Effect of non-taxable income -21514.35
Effect of undeductible costs expenses or losses 16939.75
Effect of use of deductible losses of unrecognized deferred tax asset of
-485271.99
prior period
Effect of deductible temporary differences or deductible losses of
430710887.32
unrecognized deferred tax asset of current period
Others 538199.79
Total 34100570.67
(52) Notes of statement of cash flows
1. Cash related to other operating activities
（1）Cash received related to other operating activities
Items Current period Previous period
Current accounts advances received 41261597.48 36965273.21
Notes to the financial statements 114Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items Current period Previous period
Interest income 19128419.09 27351519.21
Special subsidy income 10475771.68 850000.00
Non-operating income 3955339.02 -
Others 1983169.94 980399.63
Total 76804297.21 66147192.05
（2）Cash paid related to other operating activities
Items Current period Previous period
Current accounts advance for another 60227872.08 28422075.16
Administrative expenses 46701363.64 112917219.14
Sales expenses 8837487.92 32130230.45
Bank charges 32800163.46 3983576.72
Others 17555604.58 -
Total 166122491.68 177453101.47
2. Other cash in relation 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 1841743458.53 299914718.38
Total 1841743458.53 299914718.38
（2）Other cash paid in relation to financing activities
Item Current period Previous period
Notes letter of guarantee and letter of credit
margins 1641919092.82 673351795.82
Lease payments 31137341.92 18485374.02
Bank charges 4378074.03 3284461.67
Total 1677434508.77 695121631.51
Notes to the financial statements 115Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(53) Supplementary details of statement of cash flows
1. Supplementary details for statement of cash flows
Items Current period Previous period
1. A reconciliation of net profit to cash flows from
operating activities:
Net profit -1506290296.63 -983416724.55
Add: Credit impairment loss -16164459.46 17450773.47
Asset impairment loss 14313228.28 84458260.66
Depreciation of fixed assets 829410743.63 823089855.07
Depreciation of right of use assets 33231654.57 30187267.26
Amortization of intangible assets 3382250.63 3039005.87
Long-term deferred expenses
Losses proceeds from disposal of PPE intangible
assets and other long-term assets (Earnings -10002955.91
marked“－”)
Scrapped losses from fixed assets (Earnings
23715183.3931389488.70
marked“－”)
Change in fair value loss (Earnings marked“－”)
Financial expenses (Earnings marked“－”) 149376560.11 184925708.36
Investment losses (Earnings marked“－”) 31605308.28 2541506.30
Deferred tax assets reduction (Addition marked“－”) -64667690.46 -11622984.29
Deferred tax liabilities increased (Reduction
61761824.68
marked“－”)
Reduction of inventory (Addition marked“－”) -160214907.42 784701660.05
Operating receivable items reduction (Addition
501415461.52-816626771.10
marked“－”)
Operating payable items increase (Less marked"－") 1204219491.33 4512520236.01
Others
Net cash flows generated from operating activities 1095091396.54 4662637281.81
Notes to the financial statements 116Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items Current period Previous period
2. Payments of investing and financing activities not
involving cash:
Liabilities transferred to capital
Convertible bonds due within one year
Fixed assets financed by leasing
3. The net increase in cash and cash equivalents:
Ending balance of cash 1182269402.52 3135535935.14
Less: Beginning balance of cash 1184774971.52 1296662683.20
Add: Ending balance of cash equivalents
Less: Opening balance of cash equivalents
The net increase in cash and cash equivalents -2505569.00 1838873251.94
2. The structure of cash and cash equivalents
Items Current period Previous period
1. Cash 1182269402.52 1184774971.52
Including: Cash on hand
Digital currencies available on demand
Bank deposits available on demand 1182269402.52 1184774971.52
Other monetary funds available on
demand
Central bank deposits available on
demand
Balances with other financial institutions
Loans to other financial institutions
2. Cash equivalents
Including: Investment of securities due within 3
months
3. Ending balance of cash and cash equivalents 1182269402.52 1184774971.52
Notes to the financial statements 117Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items Current period Previous period
Including: Cash and cash equivalents limited to use
by the parent company of other subsidiary
in the group
(54) Foreign currency monetary items
1. Foreign currency monetary items
Ending balance in Ending balance
Item Exchange rate
foreign currency translated to RMB
Cash and cash equivalents 355889274.38
Including: USD 49169322.42 7.1268 350419927.04
HKD 5992491.88 0.9127 5469347.34
Non-current liabilities due
1035967.20
within one year
Including: JPY 23176000.00 0.0447 1035967.20
Long-term loans 2589918.00
Including: JPY 57940000.00 0.0447 2589918.00
6. Equity in other entities
(1) Equity in subsidiaries
1. Constitution of enterprise group
Principal Shareholding ratio
Registrati Notes of
Name of the subsidiary place of Acquisition method
on place business Direct Indirect
business
Guangzhou Bengang Steel & Guangzho Guangzho
Sales 100.00 Establishment
Iron Trading Co. Ltd u u
Shanghai Bengang
Metallurgy Science and Shanghai Shanghai Sales 100.00 Establishment
Technology Co. Ltd
Dalian Benruitong
Automobile Material Dalian Dalian Manufacturing 65.00 Establishment
Technology Co. Ltd
Bengang POSCO Cold-rolled Business combination
Benxi Benxi Manufacturing 75.00
Sheet Co. Ltd. under common control
Changchun Bengang Steel & Changchu Business combination
Changchun Sales 100.00
Iron Trading Co. Ltd. n under common control
Notes to the financial statements 118Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Principal Shareholding ratio
Registrati Notes of
Name of the subsidiary place of Acquisition method
on place business Direct Indirect
business
Yantai Bengang Steel Sales Business combination
Yantai Yantai Sales 100.00
Co. Ltd. under common control
Tianjin Bengang Steel Business combination
Tianjin Tianjin Sales 100.00
Trading Co. Ltd. under common control
Benxi Bengang Steel & Iron
Benxi Benxi Sales 100.00 Establishment
Sales Co. Ltd.Shenyang Bengang
Metallurgy Science and Shenyang Shenyang Sales 100.00 Establishment
Technology Co. Ltd
2. Significant but not wholly-owned subsidiaries
Dividend declared
Proportion of Profits and losses Ending
to distribute to
Name of the subsidiaries non-controlling attributing to non- balance of non-
non-controlling
interests (%) controlling shareholders controlling interests
shareholders
Bengang Posco Cold-rolled
25%43980460.30620637405.69
Sheet Co. Ltd.Notes to the financial statements 119Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
3. Financial information of significant but not wholly-owned subsidiaries
30 June 2024 31 December 2023
Non- Non- Non-
Current Current Non-current Total Current Current Total
Name of the subsidiaries current Total assets current Total assets current
assets liabilities liabilities liabilities assets liabilities liabilities
assets assets liabilities
Bengang Posco Cold-rolled
4562128686.75933499610.605495628297.353013073069.823013073069.823314945506.13958741994.504273687500.631969330156.261969330156.26
Sheet Co. Ltd.Current period Previous period
Total Net cash flows Total Net cash flows
Operating Operating
Name of the subsidiaries Net profit comprehensive from operating Net profit comprehensive from operating
income income
income activities income activities
Bengang Posco Cold-rolled
4625594944.57175927445.95175927445.95321389844.864253071574.2169847227.2369847227.23171658194.18
Sheet Co. Ltd.
(2) The shareholder's equity in the subsidiary has changed and still control the subsidiary's transactions
The Company does not exist such matters.Notes to the financial statements 120Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
7. Government grants
1. Liabilities relating to government grants
Amounts Amounts
Amounts
recognized in derecognized Offset costs or
recognized in
31 December non-operating in other expenses Related to
Item Addition other income 30 June 2024
2023 income during expense during during the assets/income
during the
the current the current current period
current period
period period
Deferred
136084955.18 100000.00 - 14369000.00 - - 121815955.18 Assets/income
income
Notes to the financial statements 121Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
8. 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 V. 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 at 30 June 2024 the maximum credit exposure that could give rise to the
Company's financial loss stems primarily from losses on the Company's financial
assets arising from the failure of the other party to perform its obligations including:
The carrying amount of the financial assets recognised in the consolidated balance
sheet; For financial instruments measured at fair value the carrying value reflects its
risk exposure but not its maximum risk exposure which will change as fair value
changes in the future.In order to reduce credit risk the Company has established a special department to
determine credit limits conduct credit approvals and perform other monitoring
procedures to ensure that necessary measures are taken to recover overdue claims.In addition the Company reviews the collection of each individual receivables at
each balance sheet date to ensure that adequate provisions are made for doubtful
accounts that cannot be collected. As a result the Company's management considers
that the Company's exposure to credit risk has been substantially reduced.The Company's working capital is held in financial institutions with higher credit
ratings and therefore the credit risk of its working capital is lower.Notes to the financial statements 122Bengang Steel Plates Co. Ltd.Semi-annual 2024
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.
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
Notes to the financial statements 123Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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 2024 the assets or liabilities
described in the following table were all balances in US dollars Hong Kong dollars
Japanese yen and Euros:
Closing balance Balance at the end of previous year
Items Other foreign Other foreign
US Dollars Total US Dollars Total
currencies currencies
Monetary funds 49169322.42 5992491.88 55161814.30 81951964.90 6400196.40 88352161.30
Non-current liabilities
23176000.0023176000.0023176000.0023176000.00
due within one year
Long-term borrowing 57940000.00 57940000.00 69528000.00 69528000.00
Total 49169322.42 87108491.88 136277814.30 81951964.90 99104196.40 181056161.30
9. 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
Notes to the financial statements 124Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Fair value at the end of the period
Fair value Fair value Fair value
Items measurement measurement measurement
Total
in the first in the second in the third
level level level
1. Continuous fair
value measurement
◆Accounts receivable
191450087.40191450087.40
financing
◆Investment in other
974463039.83974463039.83
equity instruments
Total assets
continuously measured 1165913127.23 1165913127.23
at fair value
10. Related party transactions
(1) Details of parent company
Share
Place of Notes of Registered Voting
Name of parent company proportion
Registry Business capital rights (%)
(%)
Benxi Steel & Iron (Group) Co. Ltd. Benxi Manufacturing 80 58.65 58.65
The ultimate controlling party of the Company is：Angang Group Co. Ltd.
(2) Details of the subsidiaries
For details of subsidiaries of the Company please refer to Note 6 “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 6 “Equity inother entities”.Notes to the financial statements 125Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
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
Bensteel Baojin (Shenyang) New Automotive Materials
Associate
Technology Co. Ltd.
（4） Details of other related parties
Name of Other related parties Relationship
Controlling shareholder of parent
Bengang Group Co. Ltd.company.Benxi Iron and Steel (Group) Real Estate Development
Same parent company
Co. Ltd.Benxi Iron and Steel (Group) Engineering Construction
Same parent company
Supervision Co. Ltd.Benxi Iron and Steel (Group) International Trade
Same parent company
Tengda Co. Ltd.Benxi Iron and Steel (Group) Electromechanical
Same parent company
Installation Engineering Co. Ltd.Benxi Iron and Steel (Group) Machinery Manufacturing
Same parent company
Co. Ltd.Benxi Iron and Steel (Group) Inspection and Testing
Same parent company
Co. Ltd.Benxi Iron and Steel (Group) Construction Advanced
Same parent company
Decoration Co. Ltd.Benxi Iron and Steel (Group) Construction Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Mining Construction
Same parent company
Engineering Co. Ltd.Benxi Iron and Steel (Group) Mining Mineral
Same parent company
Resources Development Co. Ltd.Notes to the financial statements 126Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Name of Other related parties Relationship
Benxi Iron and Steel (Group) Mining Liaoyang
Same parent company
Jiajiaobao Iron Mine Co. Ltd.Benxi Iron and Steel (Group) Mining Liaoyang
Same parent company
Ma'erling Pellet Co. Ltd.Benxi Iron and Steel (Group) Mining Yanjia Valley
Limestone Mine Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Mining Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Road and Bridge
Same parent company
Construction Engineering Co. Ltd.Benxi Iron and Steel (Group) Thermal Power
Same parent company
Development Co. Ltd.Benxi Steel & Iron (Group) Steel & Iron Process and
Same parent company
Logistics Co. Ltd.Benxi Iron and Steel (Group) Industrial Development
Same parent company
Co. Ltd.Benxi Iron and Steel (Group) Information Automation
Same parent company
Co. Ltd.Benxi New Industrial Development Co. Ltd. Same parent company
Liaoning Hengtai Heavy Machinery Co. Ltd. Same parent company
Liaoning Hengtong Metallurgical Equipment
Same parent company
Manufacturing Co. Ltd.Liaoning Slag Micropowder Co. Ltd. Same parent company
Liaoning Lide Internet of Things Co. Ltd. Same parent company
Liaoning Metallurgical Technician College Same parent company
Liaoning Metallurgical Vocational Technical College Same parent company
Liaoning Yitong Machinery Manufacturing Co. Ltd. Same parent company
Bengang Stainless Steel Cold Rolling Dandong Co.Same parent company
Ltd.Bengang Gaoyuan Industrial Development Co. Ltd. Same parent company
Notes to the financial statements 127Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Name of Other related parties Relationship
Benxi Aiko Hydraulic Sealing Co. Ltd. Same parent company
Benxi Dongfeng Lake Steel Resource Utilization Co.Same parent company
Ltd.Benxi Xihu Metallurgical Furnace Material Co. Ltd. Same parent company
Benxi Weir Surfacing Manufacturing Co. Ltd. Same parent company
Dalian Bolore Steel Pipe Co. Ltd. Same parent company
Bengang Electrical Co. Ltd. Associate of parent company
Northern Hengda Logistics Co. Ltd. Belongs to Bengang Group Co. Ltd.Bengang Group International Economic and Trade Co.Belongs to Bengang Group Co. Ltd.Ltd.Benxi Northern Iron Industry Co. Ltd. Belongs to Bengang Group Co. Ltd.Benxi Beiying Iron and Steel (Group) Co. Ltd. Belongs to Bengang Group Co. Ltd.Benxi Beiying Iron and Steel Group Import and Export
Belongs to Bengang Group Co. Ltd.Co. Ltd.Chengdu Xingyun Smart Technology Co. Ltd. Belongs to Angang Group Co. Ltd.DeLin Industrial Products Co. Ltd. Belongs to Angang Group Co. Ltd.DeLin Landport Supply Chain Services Co. Ltd. Belongs to Angang Group Co. Ltd.Guangzhou Angang Steel Processing Co. Ltd. Belongs to Angang Group Co. Ltd.Angang (Hangzhou) Automotive Materials Technology
Belongs to Angang Group Co. Ltd.Co. Ltd.Angang (Liaoning) Materials Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Electrical Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Scrap Resources (Anshan) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Processing & Distribution (Dalian) Co.Belongs to Angang Group Co. Ltd.Ltd.Angang Steel Processing & Distribution (Changchun)
Belongs to Angang Group Co. Ltd.Co. Ltd.Angang Steel Processing & Distribution (Zhengzhou)
Belongs to Angang Group Co. Ltd.Co. Ltd.Angang Steel Distribution (Hefei) Co. Ltd. Belongs to Angang Group Co. Ltd.Notes to the financial statements 128Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Name of Other related parties Relationship
Angang Steel Distribution (Wuhan) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Rope Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Company Limited Belongs to Angang Group Co. Ltd.Angang Chemical Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Group Beijing Research Institute Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Group International Economic & Trade Co.Belongs to Angang Group Co. Ltd.Ltd.Angang Group Energy-Saving Technology Services
Belongs to Angang Group Co. Ltd.Co. Ltd.Angang Group Mining Gongchangling Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Group Mining Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Group Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Group Automation Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Construction Group Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Metal Structure Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Mining Machinery Manufacturing Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Mining Automotive Transportation Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Green Resources Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Energy Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Industrial Group (Anshan) Equipment
Belongs to Angang Group Co. Ltd.Operation & Maintenance Co. Ltd.Angang Industrial Group Metallurgical Machinery Co.Belongs to Angang Group Co. Ltd.Ltd.Angang Industrial Group Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Heavy Machinery Design & Research Institute
Belongs to Angang Group Co. Ltd.Co. Ltd.Angang Heavy Machinery Co. Ltd. Belongs to Angang Group Co. Ltd.Anshan Angang International Travel Agency Co. Ltd. Belongs to Angang Group Co. Ltd.Anshan Iron & Steel Metallurgical Furnace Material
Belongs to Angang Group Co. Ltd.Technology Co. Ltd.Notes to the financial statements 129Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Name of Other related parties Relationship
Anshan Jianbo Engineering Testing Co. Ltd. Belongs to Angang Group Co. Ltd.Anzi (Tianjin) Financial Leasing Co. Ltd. Belongs to Angang Group Co. Ltd.Pangang Group Chengdu Vanadium & Titanium
Belongs to Angang Group Co. Ltd.Resources Development Co. Ltd.Pangang Group Engineering Technology Consulting
Belongs to Angang Group Co. Ltd.Co. Ltd.Pangang Group Jiangyou Great Wall Special Steel Co.Belongs to Angang Group Co. Ltd.Ltd.Shanxi Materials International Energy Co. Ltd. Belongs to Angang Group Co. Ltd.Tianjin Angang Steel Processing & Distribution Co.Belongs to Angang Group Co. Ltd.Ltd.Tianjin Angang International Northern Trade Co. Ltd. Belongs to Angang Group Co. Ltd.Tianjin Bengang Sheet Metal Processing & Distribution
Belongs to Angang Group Co. Ltd.Co. Ltd.Changchun FAW Angang Steel Processing &
Belongs to Angang Group Co. Ltd.Distribution Co. Ltd.Angang Group Engineering Technology Co. Ltd. Associate of Angang Group
(5) Related Party Transactions
1. Related party transactions of purchasing goods and services
Company as the purchaser
The content of Whether
Amount of the
Name related party Current period transactions transaction Previous period
approved limit is
transactions
exceeded
Benxi Beiying Iron
& Steel (Group) Co. Raw material 6036111840.20 14930000000.00 NO 6177881267.18
Ltd.Benxi Iron & Steel
(Group) Mining Co. Raw material 3761543430.27 7500000000.00 NO 3173059838.70
Ltd.Benxi Iron & Steel
(Group) Industrial
Raw material 268379808.18 300000000.00 NO 9559452.37
Development Co.Ltd.Benxi Iron & Steel
Raw material 53351214.25 300000000.00 NO 133872831.15
(Group) Co. Ltd.Angang Group
International
Raw material 107305564.26 300000000.00 NO
Economic & Trade
Co. Ltd.Notes to the financial statements 130Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
The content of Whether
Amount of the
Name related party Current period transactions transaction Previous period
approved limit is
transactions
exceeded
Anshan Iron & Steel
Raw material 304711056.15 506000000.00 NO 200416836.36
Group Co. Ltd.Angang Group
Diverse Industry
Raw material 483423623.30 1600000000.00 NO 370082138.82
Development Co.Ltd.Other Subsidiaries of
Raw material 20608416.29 50000000.00 NO 942680.16
Angang Group
Benxi Beiying Iron
Supplementary
& Steel (Group) Co. 20000000.00 NO
Ltd. material
Benxi Iron & Steel
(Group) Machinery Supplementary
62549067.24 100000000.00 NO 38334305.48
Manufacturing Co. material
Ltd.Benxi Steel & Iron
(Group) Steel & Iron Supplementary
15407343.86 160000000.00 NO 79433788.85
Process and material
Logistics Co. Ltd.Benxi Iron & Steel
(Group) Supplementary
818584.20 120000000.00 NO 4854600.01
Construction Co. material
Ltd.Benxi Iron & Steel Supplementary
(Group) Information 7016883.54 80000000.00 NO 16818802.44
Automation Co. Ltd. material
Benxi Iron & Steel
(Group) Industrial Supplementary
17015.07 40000000.00 NO 2120094.92
Development Co. material
Ltd.Benxi Iron & Steel Supplementary
106581116.87 260000000.00 NO 53746891.24
(Group) Co. Ltd. material
Angang Group
Diverse Industry Supplementary
5171074.60 15000000.00 NO
Development Co. material
Ltd.Anshan Iron & Steel Supplementary
64544420.24 115000000.00 NO 61671860.93
Group Co. Ltd. material
Other Subsidiaries of Supplementary
17810333.73 40000000.00 NO 78844487.60
Angang Group material
Benxi Beiying Iron Procurement
& Steel (Group) Co. of energy 316619543.14 600000000.00 NO 329215977.30
Ltd. power
Procurement
Other Subsidiaries of
of energy 118036.44 YES 208218.19
Angang Group
power
Benxi Iron & Steel
(Group) Support
103545050.15 400000000.00 NO 246466923.42
Construction Co. services
Ltd.Benxi Iron & Steel
Support
(Group) Information 53096184.97 120000000.00 NO 8215028.90
Automation Co. Ltd. services
Benxi Steel & Iron
(Group) Steel & Iron Support
311023983.44 350000000.00 NO 103157106.74
Process and services
Logistics Co. Ltd.Benxi Steel (Group) Support
30000000.00 NO
Mining Co. Ltd. services
Benxi Steel Group
International Support
40729648.83 100000000.00 NO 32464379.89
Economic and Trade services
Co. Ltd.Notes to the financial statements 131Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
The content of Whether
Amount of the
Name related party Current period transactions transaction Previous period
approved limit is
transactions
exceeded
Benxi Steel (Group) Support
Information 104785276.69 200000000.00 NO 60120395.62
Automation Co. Ltd. services
Northern Hengda Support
11200905.68 100000000.00 NO 67162305.56
Logistics Co. Ltd. services
Benxi Steel (Group)
Machinery Support
10702549.83 70000000.00 NO 21034856.70
Manufacturing Co. services
Ltd.Benxi Steel (Group)
Industry Support
3802809.23 8000000.00 NO 5080866.42
Development Co. services
Ltd.Benxi Steel (Group) Support
140119640.51 344000000.00 NO 168574123.96
Co. Ltd. services
Bengang Group Co. Support
102489358.33 362000000.00 NO
Ltd. services
Ansteel Group
Engineering Support
Technology 53638063.99 120000000.00 NO 118731759.13
Development Co. services
Ltd.Anshan Iron and Support
Steel Group Co. 347464633.47 260000000.00 YES 319392000.92
Ltd. services
Other subsidiaries of Support
7342541.75 30000000.00 NO 14261748.44
Ansteel Group services
Company as the seller
The content of
Name related party Current period Previous period
transactions
Northern Hengda Logistics Co. Ltd. Products 1722052621.91 1646632183.35
Benxi Beiying Steel (Group) Co. Ltd. Products 222640542.68 133546983.71
Benxi Steel (Group) Mining Co. Ltd. Products 143349069.56 468447521.17
Benxi Steel (Group) Construction Co. Products 1443062.14 3761171.44
Ltd.Benxi Steel (Group) Machinery Products 9436595.76 6539107.03
Manufacturing Co. Ltd.Benxi Steel (Group) Industrial Products 81217653.27 18085533.30
Development Co. Ltd.Benxi Steel (Group) Co. Ltd. Products 57601879.59 114712497.47
Anshan Iron and Steel Group Co. Ltd. Products 1401685867.84 582043758.79
Notes to the financial statements 132Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
The content of
Name related party Current period Previous period
transactions
Ansteel Group Zhongyuan Industrial Products 37353702.58 79515461.22
Development Co. Ltd.Ansteel Group International Economic and Products 198622209.28
Trade Co. Ltd.Panzhihua Iron and Steel Group Co. Ltd. Products 12193696.16 1542012.35
Other Subsidiaries of Ansteel Group Products 15005049.12 126692.04
Benxi Steel (Group) Mining Co. Ltd. Support 4108288.08
services
Other Subsidiaries of Ansteel Group Support 1491326.68 100754.71
services
2. Lease information of related parties
Company as the lessor
Lease capital Lease income of Lease income of
Lessee
category current period previous period
Benxi Steel & Iron (Group)
Warehouse and
Steel & Iron Process and 670802.00
machinery
Logistics Co. Ltd.Notes to the financial statements 133Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Company as the lessee
Current period Previous period
Rental Rental
costs for costs for
short- short-
Variable Variable
term term
lease lease
leases Interest leases Interest
payments Increase payments Increase
Lease capital and expense on and expense on
Lessor not included d right to not included d right to
category leases of Lease charges lease leases of Lease charges lease
in the use in the use
low-value liabilities low-value liabilities
measuremen assets measuremen assets
assets assumed assets assumed
t of the lease t of the lease
with with
liability liability
simplifie simplifie
d d
treatment treatment
Benxi Steel Land use
& Iron right
27638772.019500054.027627809.219750096.2
(Group) 7669068.1
6060
Steel & 7 square
Iron meter
Notes to the financial statements 134Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Current period Previous period
Rental Rental
costs for costs for
short- short-
Variable Variable
term term
lease lease
leases Interest leases Interest
payments Increase payments Increase
Lease capital and expense on and expense on
Lessor not included d right to not included d right to
category leases of Lease charges lease leases of Lease charges lease
in the use in the use
low-value liabilities low-value liabilities
measuremen assets measuremen assets
assets assumed assets assumed
t of the lease t of the lease
with with
liability liability
simplifie simplifie
d d
treatment treatment
Process Land use
and right
Logistics 42920.00
Co. Ltd. square meter
Notes to the financial statements 135Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Current period Previous period
Rental Rental
costs for costs for
short- short-
Variable Variable
term term
lease lease
leases Interest leases Interest
payments Increase payments Increase
Lease capital and expense on and expense on
Lessor not included d right to not included d right to
category leases of Lease charges lease leases of Lease charges lease
in the use in the use
low-value liabilities low-value liabilities
measuremen assets measuremen assets
assets assumed assets assumed
t of the lease t of the lease
with with
liability liability
simplifie simplifie
d d
treatment treatment
Benxi Steel
2300 Hot
& Iron
rolling
(Group)
product line 8049080.52 3870344.34 8049080.53 3736932.14
Steel &
related real
Iron
estate
Process
Notes to the financial statements 136Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Current period Previous period
Rental Rental
costs for costs for
short- short-
Variable Variable
term term
lease lease
leases Interest leases Interest
payments Increase payments Increase
Lease capital and expense on and expense on
Lessor not included d right to not included d right to
category leases of Lease charges lease leases of Lease charges lease
in the use in the use
low-value liabilities low-value liabilities
measuremen assets measuremen assets
assets assumed assets assumed
t of the lease t of the lease
with with
liability liability
simplifie simplifie
d d
treatment treatment
and
Logistics
Co. Ltd.Benxi 1780 Hot
7175818.862980721.707557730.912877975.14
Beiying rolling
Notes to the financial statements 137Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Current period Previous period
Rental Rental
costs for costs for
short- short-
Variable Variable
term term
lease lease
leases Interest leases Interest
payments Increase payments Increase
Lease capital and expense on and expense on
Lessor not included d right to not included d right to
category leases of Lease charges lease leases of Lease charges lease
in the use in the use
low-value liabilities low-value liabilities
measuremen assets measuremen assets
assets assumed assets assumed
t of the lease t of the lease
with with
liability liability
simplifie simplifie
d d
treatment treatment
Steel & product line
Iron related real
(Group) estate
Co. Ltd.Notes to the financial statements 138Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Current period Previous period
Rental Rental
costs for costs for
short- short-
Variable Variable
term term
lease lease
leases Interest leases Interest
payments Increase payments Increase
Lease capital and expense on and expense on
Lessor not included d right to not included d right to
category leases of Lease charges lease leases of Lease charges lease
in the use in the use
low-value liabilities low-value liabilities
measuremen assets measuremen assets
assets assumed assets assumed
t of the lease t of the lease
with with
liability liability
simplifie simplifie
d d
treatment treatment
Land use
Bengang
right
Group Co. 4972711.56 1224959.40 4972711.54 1315378.20
728282.30
Ltd.square meter
Notes to the financial statements 139Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Current period Previous period
Rental Rental
costs for costs for
short- short-
Variable Variable
term term
lease lease
leases Interest leases Interest
payments Increase payments Increase
Lease capital and expense on and expense on
Lessor not included d right to not included d right to
category leases of Lease charges lease leases of Lease charges lease
in the use in the use
low-value liabilities low-value liabilities
measuremen assets measuremen assets
assets assumed assets assumed
t of the lease t of the lease
with with
liability liability
simplifie simplifie
d d
treatment treatment
Ansteel
Group machinery
12063482.0
Energy- and 119211.50
4
Saving equipment
Technolog
Notes to the financial statements 140Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Current period Previous period
Rental Rental
costs for costs for
short- short-
Variable Variable
term term
lease lease
leases Interest leases Interest
payments Increase payments Increase
Lease capital and expense on and expense on
Lessor not included d right to not included d right to
category leases of Lease charges lease leases of Lease charges lease
in the use in the use
low-value liabilities low-value liabilities
measuremen assets measuremen assets
assets assumed assets assumed
t of the lease t of the lease
with with
liability liability
simplifie simplifie
d d
treatment treatment
y Services
Co. Ltd.Notes to the financial statements 141Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(6) Receivables and payables of the related parties
1. Receivables of the Company
30 June 2024 31 December 2023
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Angang Steel Company
Accounts receivable 629660.82 6296.61 - -
Limited
Angang Engineering
Accounts receivable 22834.85 228.35 30509.40 305.09
Technology Group Co. Ltd.Angang Construction Group
Accounts receivable - - 4154.16 41.54
Co. Ltd.Benxi Steel Group
Accounts receivable International Economic & 893836130.28 8938361.30 854482902.28 29419309.19
Trade Co. Ltd.Accounts receivable Bengang Group Co. Ltd. 6007.34 60.07 1246.09 12.46
Accounts receivable Benxi Beifang Iron Co. Ltd. 8222949.22 82229.49 52161339.98 539226.50
Benxi Beiying Steel Group
Accounts receivable 28089043.04 280890.43 - -
Co. Ltd.Benxi Dongfenghu Steel
Accounts receivable Resource Utilization Co. 549364.51 5493.65 1129130.33 11291.30
Ltd.Benxi Steel Group Real
Accounts receivable 123492.06 1234.92 269832.53 244698.20
Estate Development Co. Ltd.Benxi Steel Group
Accounts receivable 5628612.94 495118.68 5954675.29 10700.06
Construction Co. Ltd.Benxi Steel Group Mine
Accounts receivable Construction Engineering 601622.16 29008.27 662998.24 11004.96
Co. Ltd.Benxi Steel Group Mining
Accounts receivable Mineral Resources 88983.85 8898.39 88983.85 889.84
Development Co. Ltd.Notes to the financial statements 142Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
30 June 2024 31 December 2023
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Benxi Steel Group Mining
Accounts receivable Liaoyang Jiajiaopu Iron Mine 72885.60 728.86 303609.00 3036.09
Co. Ltd.Benxi Steel Group Mining
Accounts receivable Liaoyang Ma'erling 76258.77 762.59 1602237.39 16022.37
Pelletizing Co. Ltd.Benxi Steel (Group) Mining
Accounts receivable 28746100.01 287461.00 43742238.95 437422.39
Co. Ltd.Benxi Steel Group Thermal
Accounts receivable 8369230.23 83692.30 16191269.77 142065.08
Development Co. Ltd.Benxi Steel & Iron (Group)
Accounts receivable Steel & Iron Process and 11517761.37 873105.60 11642752.56 256914.89
Logistics Co. Ltd.Benxi Iron and Steel (Group)
Accounts receivable Industrial Development Co. 17525398.95 175253.99 20496130.86 2727.99
Ltd.Benxi Iron and Steel (Group)
Accounts receivable Information Automation Co. 10377.61 103.78 14700.00 147.00
Ltd.Benxi Iron and Steel (Group)
Accounts receivable 15340188.72 498892.02 19025699.80 681571.55
Co. Ltd.Benxi Xihu Metallurgical
Accounts receivable 37834.35 378.34 13216.40 132.16
Furnace Charge Co. Ltd.Benxi Weld Phosphate
Accounts receivable Overlay Manufacturing Co. 189911.43 17160.36 191720.22 16994.63
Ltd.Benxi New Business
Accounts receivable 43969.49 8793.90 49497.48 55.28
Development Co. Ltd.Notes to the financial statements 143Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
30 June 2024 31 December 2023
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Liaoning Hengtong
Accounts receivable Metallurgical Equipment 144307.22 1443.07 162404481.01 1637032.46
Manufacturing Co. Ltd.Liaoning Slag Micro Powder
Accounts receivable - - 12848.00 128.48
Co. Ltd.Pangang Group Jiangyou
Accounts receivable Great Wall Special Steel Co. 5151698.62 51516.99 - -
Ltd.Ansteel Energy Technology
Accounts receivable - - 283.53 2.84
Co. Ltd.Ansteel Steel Material
Accounts receivable Processing and Distribution 9587508.87 95875.09 27279295.84 272792.96
(Dalian) Co. Ltd.
Angang Steel Company
Other receivables 95781.27 50581.83 95781.27 46061.89
Limited
Ansteel Group Corporation
Other receivables 6706.00 670.60 6706.00 67.06
Limited
Other receivables Bengang Group Co. Ltd. 80622.08 806.22 7305.59 73.06
Benxi Dongfenghu Steel
Other receivables Resource Utilization Co. 3478250.07 695650.01 3478250.07 23340.75
Ltd.Benxi Steel (Group)
Other receivables Machinery Manufacturing 1061981.67 212396.33 1061981.67 106198.17
Co. Ltd.Benxi Steel Group
Other receivables 250679.61 250679.61 250679.61 250679.61
Construction Co. Ltd.Benxi Iron and Steel (Group)
Other receivables Industrial Development Co. 431639.87 86327.97 431639.87 43163.99
Ltd.Notes to the financial statements 144Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
30 June 2024 31 December 2023
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Benxi Iron and Steel (Group)
Other receivables 5988404.80 7413860.80 4561714.36
Co. Ltd. 4678560.88
Liaoning Hengtai Heavy
Other receivables 3510967.39 351096.74 3545583.40 35455.83
Machinery Co. Ltd.Ansteel Capital (Tianjin)
Other receivables - - 8064427.98 80644.28
Financial Leasing Co. Ltd.Northern Hengda Logistics
Other receivables 1000.00 - 1000.00 -
Co. Ltd.Benxi Steel Group
Other receivables International Economic & 6617.52 6617.52 6617.52 6617.52
Trade Co. Ltd.Benxi New Business
Other receivables 2280942.73 2280942.73 2280942.73 2280942.73
Development Co. Ltd.Angang Steel Company
Prepayments 702645.58 - 882482.46 -
Limited
Ansteel Group International
Prepayments Economic and Trade Co. 395500.01 - 0.01 -
Ltd.Northern Hengda Logistics
Prepayments 844386.93 - 874210.39 -
Co. Ltd.Benxi Steel & Iron (Group)
Prepayments Steel & Iron Process and 3197081.91 - 3162173.15 -
Logistics Co. Ltd.Benxi Iron and Steel (Group)
Prepayments Information Automation Co. 575313.17 - 1075365.83 -
Ltd.Benxi New Business
Prepayments 4765300.85 - 8122937.94 -
Development Co. Ltd.Notes to the financial statements 145Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
30 June 2024 31 December 2023
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Angang Engineering
Prepayments - - 6774166.05 -
Technology Group Co. Ltd.Benxi Steel Group
Prepayments International Economic & - - 10176164.50 -
Trade Co. Ltd.Benxi Beiying Iron & Steel
Prepayments Group Import and Export - - 1119904.00 -
Co. Ltd.Benxi Iron and Steel (Group)
Prepayments Industrial Development Co. 82.41 - - -
Ltd.Other non-current Angang Engineering
14084299.22-14517451.17-
assets Technology Group Co. Ltd.Benxi Steel Gaoyuan
Other non-current
Industrial Development Co. 542400.00 - 542400.00 -
assets
Ltd.Benxi Steel (Group)
Other non-current
Machinery Manufacturing 4176.00 - 4176.00 -
assets
Co. Ltd.Other non-current Benxi Steel Group
10094076.34-22094076.34-
assets Construction Co. Ltd.Benxi Steel Group Mine
Other non-current
Construction Engineering 3155429.08 - 3155429.08 -
assets
Co. Ltd.Benxi Steel & Iron (Group)
Other non-current
Steel & Iron Process and 19639834.36 - 22915336.04 -
assets
Logistics Co. Ltd.Notes to the financial statements 146Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
30 June 2024 31 December 2023
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Benxi Iron and Steel (Group)
Other non-current
Industrial Development Co. 833139.38 - 833139.38 -
assets
Ltd.Benxi Iron and Steel (Group)
Other non-current
Information Automation Co. 14770709.95 - 16042420.95 -
assets
Ltd.Other non-current Liaoning Hengtai Heavy
37496.00-263473.40-
assets Machinery Co. Ltd.Other non-current Angang Steel Company
--7305.45-
assets Limited
Benxi Steel (Group)
Other non-current
Machinery Manufacturing - - 3506580.00 -
assets
Co. Ltd.
2. Payables of the Company
Items Name 30 June 2024 31 December 2023
Notes payable Angang Electric Co. Ltd. 63861.90 170418.08
Notes payable Angang Scrap Resources (Anshan) Co. Ltd. 93887524.63 66774511.99
Notes payable Angang Steel Rope Co. Ltd. - 263044.11
Notes payable Angang Steel Company Limited 594771.45 145476.64
Ansteel Group International Economic and
Notes payable - 38512770.27
Trade Co. Ltd.Notes payable Angang Steel Company Limited 57905049.62 6637769.40
Ansteel Group International Economic and
Notes payable 301455.97 -
Trade Co. Ltd.Notes payable Ansteel Energy Technology Co. Ltd. - 132150.38
Angang Industrial Group (Anshan) Equipment
Notes payable 2594377.99 3063464.44
Operation and Maintenance Co. Ltd.Notes to the financial statements 147Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items Name 30 June 2024 31 December 2023
Angang Industrial Group Metallurgical
Notes payable 6921702.31 2198235.32
Machinery Co. Ltd.Notes payable Angang Heavy Machinery Co. Ltd. 3451927.09 864614.53
Anshan Iron and Steel Metallurgical Furnace
Notes payable 8561439.30 5954131.61
Material Technology Co. Ltd.Notes payable Northern Hengda Logistics Co. Ltd. 4193014.39 4962246.27
Benxi Stainless Steel Cold Rolling Dandong
Notes payable - 42982.27
Co. Ltd.Benxi Steel Gaoyuan Industrial Development
Notes payable 718720.40 1125249.71
Co. Ltd.Benxi Steel Group International Economic &
Notes payable 49695126.60 47218526.77
Trade Co. Ltd.Notes payable Bengang Group Co. Ltd. 4688315.28 4688315.28
Notes payable Benxi Aike Hydraulic Sealing Co. Ltd. 2375563.52 1646773.75
Notes payable Benxi Beifang Iron Co. Ltd. 3038178.83 4486925.32
Notes payable Benxi Beiying Steel & Iron (Group) Co. Ltd. - 152926015.01
Benxi Beiying Iron & Steel Group Import and
Notes payable - 225141.59
Export Co. Ltd.Benxi Dongfenghu Steel Resource Utilization
Notes payable 9114752.45 11255094.10
Co. Ltd.Benxi Steel (Group) Real Estate Development
Notes payable 213493.64 130815.00
Co. Ltd.Benxi Steel (Group) International Trade Tenda
Notes payable 69861530.98 42667716.38
Co. Ltd.Benxi Steel (Group) Machinery Manufacturing
Notes payable 23856002.37 2228869.19
Co. Ltd.Benxi Steel (Group) Construction Advanced
Notes payable 264705.62 264705.62
Decoration Co. Ltd.Notes payable Benxi Steel Group Construction Co. Ltd. 14334617.90 35954925.98
Notes to the financial statements 148Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items Name 30 June 2024 31 December 2023
Benxi Steel Group Mining Construction
Notes payable 7680319.81 7069202.17
Engineering Co. Ltd.Benxi Steel Group Mining Liaoyang Mailin
Notes payable 22954939.79 55297876.79
Pellet Co. Ltd.Notes payable Benxi Steel Group Mining Co. Ltd. 92350907.77 71864074.04
Benxi Steel Group Thermal Power
Notes payable 234627.43 281092.78
Development Co. Ltd.Benxi Steel Group Equipment Engineering Co.Notes payable 20637252.99 47480851.11
Ltd.Benxi Steel Group Industrial Development Co.Notes payable 66092986.94 99026848.37
Ltd.Benxi Steel Group Information Automation
Notes payable 23085044.04 18762233.66
Co. Ltd.Notes payable Benxi Steel Group Metallurgical Slag Co. Ltd. - 250593.53
Benxi Steel & Iron (Group) Steel & Iron
Notes payable 35105246.14 32174626.26
Process and Logistics Co. Ltd.Benxi Jikong Electronic Instrument Industry
Notes payable 28802.83 -
Co. Ltd.Benxi Xihu Metallurgical Furnace Charge Co.Notes payable 20433308.06 25620902.35
Ltd.Benxi Weld Phosphate Overlay Manufacturing
Notes payable 234112.13 234112.13
Co. Ltd.Notes payable Benxi New Business Development Co. Ltd. 3357637.09 3357637.09
Notes payable Dalian Polaro Steel Pipe Co. Ltd. 1065882.33 -
Notes payable Dalian DeLin Industry and Trade Co. Ltd. 6313029.23 9685683.68
Notes payable Liaoning Hengtai Heavy Machinery Co. Ltd. 14195131.54 18098769.50
Liaoning Hengtong Metallurgical Equipment
Notes payable 17960536.38 1409071.37
Manufacturing Co. Ltd.Notes payable Liaoning Lide IoT Co. Ltd. 4641997.80 4170770.16
Notes to the financial statements 149Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items Name 30 June 2024 31 December 2023
Liaoning Yitong Mechanical Manufacturing
Notes payable 5429310.75 2127118.28
Co. Ltd.Panzhihua Iron and Steel Group Chengdu
Notes payable Vanadium & Titanium Resources Development 7080.77 -
Co. Ltd.Notes payable Shanxi Wuchan International Energy Co. Ltd. - 91859.97
Angang Steel Processing and Distribution
Notes payable 47065.95 208377.96
(Changchun) Co. Ltd.
Angang Steel Processing and Distribution
Notes payable 36055.30 -
(Zhengzhou) Co. Ltd.Notes payable Benxi Electrical Co. Ltd. 469417.41 2903896.45
DeLin Port Logistics and Supply Chain Service
Notes payable - 58351.28
Co. Ltd.Liaoning Metallurgical Vocational and
Notes payable 48048.00 48048.00
Technical College
Angang Engineering Technology Group Co.Notes payable - 170708.00
Ltd.Notes payable Benxi Steel (Group) First Construction - 108.90
Tianjin Benxi Steel Sheet Processing and
Notes payable 959.74 7.25
Distribution Co. Ltd.Contract liabilities Angang Steel Company Limited 130744.73 130744.73
Contract liabilities Angang Chemical Technology Co. Ltd. 10325624.88 6485543.83
Angang Mining Equipment Manufacturing Co.Contract liabilities 1708332.16 -
Ltd.Contract liabilities Angang Green Resources Technology Co. Ltd. 212523.31 1484311.95
Contract liabilities Ansteel Energy Technology Co. Ltd. 0.02 283.55
Benxi Steel (Group) Machinery Manufacturing
Contract liabilities - 23079.79
Co. Ltd.Contract liabilities Northern Hengda Logistics Co. Ltd. 48069790.93 54423037.31
Contract liabilities Benxi Beiying Steel & Iron (Group) Co. Ltd. 39580174.45 1579294.00
Notes to the financial statements 150Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items Name 30 June 2024 31 December 2023
Benxi Dongfenghu Steel Resource Utilization
Contract liabilities 2902028.57 2470669.23
Co. Ltd.Benxi Steel (Group) Machinery Manufacturing
Contract liabilities 212368.12 177026.55
Co. Ltd.Benxi Iron and Steel (Group) Construction Co.Ltd. Construction Engineering Branch
Contract liabilities 5898.81 -
Company
Benxi Steel (Group) Mining Liaoyang Jiajia
Contract liabilities 55491.00 -
Fortress Iron Mine Co. Ltd.Benxi Steel Group Mining Liaoyang Mailin
Contract liabilities 13846575.06 -
Pellet Co. Ltd.Contract liabilities Benxi Steel Group Mining Co. Ltd. 8075928.55 4862723.19
Benxi Steel Group Industrial Development Co.Contract liabilities 6225258.11 1587538.32
Ltd.Contract liabilities Benxi Steel Group Metallurgical Slag Co. Ltd. 0.02 0.02
Benxi Xihu Metallurgical Furnace Charge Co.Contract liabilities 20000.00 20000.00
Ltd.Contract liabilities Dalian Polaro Steel Pipe Co. Ltd. 2743036.96 3221292.56
DeLin Port Logistics and Supply Chain Service
Contract liabilities 248936991.59 188703584.97
Co. Ltd.Liaoning Hengtong Metallurgical Equipment
Contract liabilities 609189.71 3588934.12
Manufacturing Co. Ltd.Liaoning Metallurgical Vocational and
Contract liabilities 0.01 0.01
Technical College
Pangang Group Jiangyou Great Wall Special
Contract liabilities - 1779438.17
Steel Co. Ltd.FAW Angang Steel Processing and Distribution
Contract liabilities 876634.27 589358.32
(Changchun) Co. Ltd.
Angang (Hangzhou) Automotive Materials
Contract liabilities 269633.16 299035.59
Technology Co. Ltd.Notes to the financial statements 151Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items Name 30 June 2024 31 December 2023
Angang Steel Processing and Distribution
Contract liabilities 2890251.95 5370495.95
(Changchun) Co. Ltd.
Contract liabilities Angang Steel Distribution (Hefei) Co. Ltd. 3050349.68 3050349.68
Contract liabilities Angang Steel Distribution (Wuhan) Co. Ltd. 2298467.19 -
Ansteel Group International Economic and
Contract liabilities 2484903.58 -
Trade Co. Ltd.Contract liabilities Benxi Steel Group Construction Co. Ltd. - 5898.81
Benxi Steel Group Thermal Power
Contract liabilities - 4487918.73
Development Co. Ltd.Contract liabilities Guangzhou Ansteel Steel Processing Co. Ltd. - 1067.17
Tianjin Ansteel Steel Processing and
Contract liabilities 132666.06 374664.00
Distribution Co. Ltd.Ansteel (Liaoning) Material Technology Co.Other payables 390000.00 390000.00
Ltd.Other payables Ansteel Group Corporation Limited - 1635.00
Other payables Ansteel Group Automation Co. Ltd. 12466000.00 1283900.00
Other payables Angang Construction Group Co. Ltd. 3597472.94 6676229.55
Benxi Steel (Group) Machinery Manufacturing
Other payables 9288998.00 50000.00
Co. Ltd.Other payables Angang Heavy Machinery Co. Ltd. 1707731.10 409930.10
Anshan Ansteel International Travel Service
Other payables - 245460.00
Co. Ltd.Other payables Anshan Jianbo Engineering Testing Co. Ltd. 252280.00 -
Other payables Northern Hengda Logistics Co. Ltd. - 5522865.33
Benxi Steel Gaoyuan Industrial Development
Other payables 3866090.78 3058404.54
Co. Ltd.Benxi Steel Group International Economic &
Other payables 52449107.24 44960728.47
Trade Co. Ltd.Other payables Bengang Group Co. Ltd. 903375.93 903375.93
Other payables Benxi Aike Hydraulic Sealing Co. Ltd. 10000.00 142790.82
Notes to the financial statements 152Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items Name 30 June 2024 31 December 2023
Other payables Benxi Beiying Steel & Iron (Group) Co. Ltd. 36739332.79 40103767.22
Benxi Steel (Group) Engineering Construction
Other payables 1497272.08 1999087.29
Supervision Co. Ltd.Benxi Steel (Group) Machinery Manufacturing
Other payables 9605712.59 -
Co. Ltd.Benxi Steel (Group) Inspection and Testing
Other payables 138630.00 75000.00
Co. Ltd.Benxi Steel (Group) Construction Advanced
Other payables 186195.55 265274.55
Decoration Co. Ltd.Other payables Benxi Steel Group Construction Co. Ltd. 113582071.77 186939097.90
Benxi Steel Group Mining Construction
Other payables 16367149.60 36371606.19
Engineering Co. Ltd.Benxi Steel (Group) Road and Bridge
Other payables 318.66 318.66
Construction Engineering Co. Ltd.Benxi Steel Group Thermal Power
Other payables 2563792.72 2070400.72
Development Co. Ltd.Benxi Steel Group Equipment Engineering Co.Other payables 34655017.52 293195637.86
Ltd.Benxi Steel Group Industrial Development Co.Other payables 4231753.90 4078753.90
Ltd.Benxi Steel Group Information Automation
Other payables 72479369.47 54062361.00
Co. Ltd.Benxi Steel & Iron (Group) Steel & Iron
Other payables 26154744.68 13372608.70
Process and Logistics Co. Ltd.Other payables Benxi New Business Development Co. Ltd. 6942650.77 15131176.03
Other payables Dalian DeLin Industry and Trade Co. Ltd. 943215.92 943215.92
Other payables Liaoning Hengtai Heavy Machinery Co. Ltd. 3643401.37 6941075.21
Liaoning Hengtong Metallurgical Equipment
Other payables - 20000.00
Manufacturing Co. Ltd.Other payables Liaoning Metallurgical Technician College 388880.00 2229204.00
Notes to the financial statements 153Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items Name 30 June 2024 31 December 2023
Liaoning Metallurgical Vocational and
Other payables 362298.00 707260.00
Technical College
Liaoning Yitong Mechanical Manufacturing
Other payables 10000.00 30396.50
Co. Ltd.Angang Engineering Technology Group Co.Other payables 146627077.45 183423813.04
Ltd.Benxi Xihu Metallurgical Furnace Charge Co.Other payables 100000.00 200000.00
Ltd.Other payables Dalian Polaro Steel Pipe Co. Ltd. 20000.00 20000.00
Pangang Group Engineering & Technology
Other payables 463291.39 1001991.58
Consulting Co. Ltd.Other payables Angang Scrap Resources (Anshan) Co. Ltd. - 500000.00
Other payables Ansteel Metal Structure Co. Ltd. 10000.00 10000.00
Anshan Iron and Steel Metallurgical Furnace
Other payables 50000.00 50000.00
Material Technology Co. Ltd.Other payables Benxi Electrical Co. Ltd. 5768826.24 5768826.24
Benxi Dongfenghu Steel Resource Utilization
Other payables 210000.00 210000.00
Co. Ltd.
(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 2021 after negotiation with Anshan Iron & Steel Group Finance CompanyLimited (hereinafter referred to as Anshan Iron & Steel Finance Company) the “FinancialServices Agreement (Years 2022-2024)” 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 Anshan Iron & Steel Finance Company for the
years 2022 2023 and 2024. The agreement stipulates that in the next twelve months the
maximum daily deposit balance of the Company and its holding subsidiaries with Anshan Iron
& Steel Finance Company will be RMB4.5 billion the maximum credit limit of loans bills
Notes to the financial statements 154Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
and other forms of credit will be RMB5.0 billion and the maximum entrusted loan to be
provided by Anshan Iron & Steel Finance Company to the Company will be RMB2.0 billion.
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
30 June 2024 31 December 2023
Items Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Cash at bank and on
hand 776545793.41 391377566.87
Total 776545793.41 391377566.87
include: funds restricted
due to centralized
management of funds
11. Commitments and Contingencies
(1) 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 December
30 2005 the Company leased land from Benxi Steel (Group). The monthly rent is 0.594
yuan per square meters the leased land area is 7669068.17 square meters and the annual
rent is 54.665 million yuan.
（2）On August 14 2019 the Company signed the "House Lease Agreement" with Benxi
Steel (Group) and Beiying Steel respectively leasing the houses and auxiliary facilities
occupied by 2300 and 1780 hot rolling mill production lines and the lease term ends on
December 31 2038. The rental fee is based on the depreciation of the original rent value
and the national additional tax plus reasonable profit negotiation. The estimated annual
Notes to the financial statements 155Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
rent is not more than 20 million yuan and 18 million yuan respectively. The rental fee is
settled and paid monthly. This related party transaction has been reviewed and approved at
the fourth meeting of the eighth board of directors of the Company.
(3) On July 15 2019 the Company signed "Land Lease Agreement" with Bengang Group
and Benxi Steel (Group) respectively and leased and used a total of 8 pieces of land of the
two companies. The lease areas are 42920.00 square meters and 728282.30 square meters
respectively with a lease term of 20 years and a rental price of 1.138 yuan per square meter
per month. After the agreement comes into effect considering the national law and policy
adjustments every five years both parties should determine whether the rent needs to be
adjusted according to the pricing basis stipulated in Article 2 of this agreement. This related
party transaction has been reviewed and approved at the third meeting of the eighth board
of directors of the company.
(4) As at 30 June 2024 the amount of irrevocable letter of credit that was not fulfilled was
1.54 billion yuan.
(2) Contingencies
1. Significant contingencies existing at the balance sheet dateOn July 20 2024 the Company issued the “Progress Announcement of Bengang SteelPlates Co. Ltd. on Major Asset Replacement and Connected Transaction” in which the
Company proposed to carry out asset replacement with its controlling shareholder Benxi
Iron & Steel (Group) Co. The assets to be transferred to the Company are 100% equity
interest in Benxi Iron & Steel (Group) Mining Industry Limited Liability Company and
the assets to be transferred from the Company are all the assets and liabilities of the listed
company except for the retained assets and liabilities and the difference between the assets
to be transferred to the Company and the assets to be transferred from the Company shall
be made up by one party to the other party in cash. At present the scope of the specific
subject assets transaction price and other elements have not been finalized the parties to
the transaction have not yet signed any agreement the transaction program still needs to be
further demonstration and communication and negotiation and need to perform the
necessary decision-making and approval procedures in accordance with the provisions of
the relevant laws regulations and the Articles of Association of the Company the relevant
matters are still subject to significant uncertainties.Notes to the financial statements 156Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
12. Subsequent events
At the balance sheet date no significant contingencies need to be disclosed.
13. Other significant events
(1) Correction of previous accounting errors
1. Retrospective restatement
There were no corrections of prior period accounting errors using the retrospective
restatement method during the reporting period.
2. Prospective application
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 other products account have a small proportion of sales
the main production base is in Liaoning and the disclosure of the segment report is not applicable.
14. Notes to the financial statements of parent company
1. Accounts receivable
(1) Accounts receivable disclosed by aging
Items 30 June 2024 31 December 2023
Within 1 year (inclusive) 1306341076.93 719865861.39
1-2 years (inclusive) 95955967.70 561695759.42
2-3 years (inclusive) 137105707.40 647190.77
3-4 years (inclusive) 561144.95 845982.97
4-5 years (inclusive) 748799.87 503056.19
Over 5 years 98544000.81 98702147.96
Sub-total 1639256697.66 1382259998.70
Less: Provision for bad debts 123430138.10 138933196.14
Total: 1515826559.56 1243326802.56
Notes to the financial statements 157Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(2) Accounts receivable disclosed by category
30 June 2024 31 December 2023
Gross carrying amount Provision for bad debts Gross carrying amount Provision for bad debts
Items
Percenta Bad debts Book value Percenta Bad debts Book value
Amount Amount Amount Amount
ge (%) ratio (%) ge (%) ratio (%)
Individually significant
and tested for 48196244.68 2.94 48196244.68 100.00 48196244.68 3.49 48196244.68 100.00
impairment individually
Accounts receivable
tested for impairment 1591060452.98 97.06 75233893.42 4.73 1515826559.56 1334063754.02 96.51 90736951.46 6.80 1243326802.56
by portfolio
Include:
Aging 1348257128.65 82.25 75233893.42 5.58 1273023235.23 1021248997.51 73.88 90736951.46 8.88 930512046.05
Related party within
242803324.3314.81242803324.33312814756.5122.63312814756.51
consolidation scope
Total 1639256697.66 100.00 123430138.10 1515826559.56 1382259998.70 100.00 138933196.14 1243326802.56
Notes to the financial statements 158Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Significant receivables tested for impairment individually:
30 June 2024 31 December 2023
Items Provision for bad Bad debts Accounts Provision for
Accounts receivable Reason
debts ratio（%） receivable bad debts
Benxi Nanfen Benxi Nanfen
Xinhe Metallurgical 48196244.68 48196244.68 100.00 Xinhe has ceased 48196244.68 48196244.68
Co. Ltd. operation.Total 48196244.68 48196244.68 48196244.68 48196244.68
Accounts receivable tested for impairment by portfolio:
Portfolio tested by aging
30 June 2024
Items
Gross carrying amount Provision for bad debts Bad debts ratio (%)
Within 1 year (inclusive) 1190253138.45 11902531.39 1.00
1-2 years (inclusive) 95955967.70 9595596.77 10.00
2-3 years (inclusive) 10390321.55 2078064.31 20.00
3-4 years (inclusive) 561144.95 561144.95 100.00
4-5 years (inclusive) 748799.87 748799.87 100.00
Over 5 years 50347756.13 50347756.13 100.00
Total 1348257128.65 75233893.42
(3) Information of provision reversal or recovery of bad debts of current period.
Increase/decrease
31 December write-
Items Current period Other 30 June 2024
2023 Reversal back/write-
provision changes
off
Provision for bad debts 138933196.14 -15503058.04 123430138.10
Total 138933196.14 -15503058.04 123430138.10
(4) Top five debtors at the year-end
Notes to the financial statements 159Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Closing balance of
Closing Closing balance provision for bad
Closing balance
balance of of accounts Percentage debts on accounts
Company of accounts
contract receivable and (%) receivable and
receivable
assets contract assets impairment of
contract assets
Benxi Steel Group International
871987094.87871987094.8753.198719870.95
Economic & Trade Co. Ltd.Shenzhen CIMC Tongchuang
119995203.37119995203.377.321199952.03
Supply Chain Co. Ltd.Liaoning Northern Coal Chemical
90698309.1990698309.195.534789690.91
Industry (Group) Co. Ltd.Benxi Steel Refractory Materials
48417907.7948417907.792.954085640.54
Co. Ltd.Benxi Nanfen Xinhe Metallurgical
48196244.6848196244.682.9448196244.68
Co. Ltd.Total 1179294759.90 1179294759.90 71.94 66991399.11
2. Other receivables
Items 30 June 2024 31 December 2023
Interest receivables
Dividend receivables 123000000.00 260000000.00
Other receivables 269648388.05 344535173.18
Total 392648388.05 604535173.18
1. Dividend receivables
(1) Detail of dividends receivable
Items 30 June 2024 31 December 2023
Shenyang Bengang Metallurgical
30000000.00
Technology Co. Ltd.Tianjin Bengang Steel Trade Co. Ltd. 47000000.00
Notes to the financial statements 160Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items 30 June 2024 31 December 2023
Shanghai Bengang Metallurgical
15000000.00
Technology Co. Ltd.Yantai Bengang Steel Sales Co. Ltd. 25000000.00
Changchun Bengang Steel Sales Co.
43000000.0043000000.00
Ltd.Guangzhou Bengang Steel Trade Co.
80000000.00100000000.00
Ltd.Sub-total 123000000.00 260000000.00
Less: Provision for bad debts
Total 123000000.00 260000000.00
2. Other receivables
(1) Other receivables disclosed by aging
Items 30 June 2024 31 December 2023
Within 1 year (inclusive) 210695374.33 284052848.38
1-2 years (inclusive) 6310326.70 35230832.41
2-3 years (inclusive) 35141930.92 33345904.56
3-4 years (inclusive) 28312363.17 3125628.24
4-5 years (inclusive) 3125628.24 229028.24
Over 5 years 60182062.60 60748068.66
Sub-total 343767685.96 416732310.49
Less: Provision for bad debts 74119297.91 72197137.31
Total: 269648388.05 344535173.18
Notes to the financial statements 161Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(2) Other receivables disclosed by bad debt provision
30 June 2024 31 December 2023
Gross carrying amount Provision for bad debts Gross carrying amount Provision for bad debts
Items
Percentage Bad debts Book value Percentage Bad debts Book value
Amount Amount Amount Amount
(%) ratio (%) (%) ratio (%)
Individually significant and
tested for impairment 15752285.66 4.58 15752285.66 100.00 15752285.66 3.78 15752285.66 100.00
individually
Accounts receivable tested
328015400.3095.4258367012.2517.79269648388.05400980024.8396.2256444851.6514.08344535173.18
for impairment by portfolio
Include:
Portfolio 1: Aging 300748271.62 87.49 58367012.25 19.41 242381259.37 373617582.97 89.65 56444851.65 15.11 317172731.32
Portfolio 2: Related party
27267128.687.9327267128.6827362441.866.5727362441.86
within consolidation scope
Total 343767685.96 100.00 74119297.91 269648388.05 416732310.49 100.00 72197137.31 344535173.18
Notes to the financial statements 162Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Significant other receivables tested for impairment individually:
30 June 2024 31 December 2023
Gross
Items Gross carrying Provision for Bad debts Basis of Provision for bad
carrying
amount bad debts ratio (%) accrual debts
amount
Benxi Iron and Steel (Group)
bankruptcy
No. 3 Architectural
12504978.5912504978.59100.0012504978.5912504978.59
Engineering Co. Ltd.clearance
Benxi Iron and Steel (Group)
bankruptcy
No. 1 Architectural
3247307.073247307.07100.003247307.073247307.07
Engineering Co. Ltd.clearance
Total 15752285.66 15752285.66 15752285.66 15752285.66
Accounts receivable tested for impairment by portfolio:
Portfolio tested by aging:
30 June 2024
Items
Gross carrying amount Provision for bad debts Bad debts ratio (%)
Within 1 year (inclusive) 210695374.33 2106953.74 70.06
1-2 years (inclusive) 6310326.70 631032.67 2.10
2-3 years (inclusive) 35141930.92 7028386.17 11.68
3-4 years (inclusive) 400236.49 400236.49 0.13
4-5 years (inclusive) 3125628.24 3125628.24 1.04
Over 5 years 45074774.94 45074774.94 14.99
Total 300748271.62 58367012.25
(3) Bad debt provision
Stage one Stage two Stage three
Lifetime
Lifetime
12-month expected credit
Provision for bad debts expected credit Total
expected credit losses (credit
losses (no credit
losses impairment
impairment)
occurred)
Beginning balance 2839575.35 4609838.82 64747723.14 72197137.31
Notes to the financial statements 163Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Stage one Stage two Stage three
Lifetime
Lifetime
12-month expected credit
Provision for bad debts expected credit Total
expected credit losses (credit
losses (no credit
losses impairment
impairment)
occurred)
Beginning balance in
-631032.67230796.18400236.49
current period
--Transfer to Stage two -631032.67 631032.67
--Transfer to Stage three -400236.49 400236.49
--Reversal to Stage two
--Reversal to Stage one
Current period
-101588.942818783.84-795034.301922160.60
provision
Current period reversal
Current period write-
back
Current period write-off
Other change
Ending balance 1475921.07 7890215.02 64753161.82 74119297.91
(4) Provision for bad debts accrued reversed or recovered in the current period
Increase/decrease
31 December Current write-
Items Other 30 June 2024
2023 period Reversal back/write-
change
provision off
Provision for bad debts 72197137.31 1922160.60 74119297.91
Total 72197137.31 1922160.60 74119297.91
(5) Other receivables disclosed by nature
Notes to the financial statements 164Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Nature 30 June 2024 31 December 2023
Compensation for the
199177700.00212242400.00
“Living Showbelt” project
Receivable and payable 140321527.47 198934209.00
Other 4268458.49 5555701.49
Total 343767685.96 416732310.49
(6) Top five debtors at the year-end
Percentage
of total other Provision for
Company Nature or content Amount Aging
receivables bad debts
(%)
Compensation forBenxi Xihu District Government the “Living 199177700.00 Within 1 year 57.94 1991777.00Showbelt” project
Benxi Iron and Steel (Group)
Receivable and 3-4 years
Third construction Engineering 12504978.59 3.64 12504978.59
payable Over 5 years
Co. Ltd
Within 1 year
Benxi Iron and Steel (Group) Co. Receivable and
5476979.64 1-2 years 1.59 4156527.72
Ltd. payable
Over 5 years
Liaoning Hengtai Heavy Receivable and
3510967.39 1-2 years 1.02 351096.74
Machinery Co. Ltd. payable
Benxi Dongfenghu Steel Resource Receivable and
3478250.07 2-3 years 1.01 695650.01
Utilization Co. Ltd. payable
Total 224148875.69 65.20 19700030.06
3. Long-term equity investment
30 June 2024 31 December 2023
Items Gross carrying Gross carrying
Impairment Book value Impairment Book value
amount amount
Subsidiaries
2222281590.242222281590.242222281590.242222281590.24
Joint ventures
46910346.4146910346.4146910346.4146910346.41
Total
2269191936.652269191936.652269191936.652269191936.65
Notes to the financial statements 165Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
(1) Details of investment in subsidiaries
Beginning Increase/decrease
Beginning
Name of entity Ending balance Ending balance
balance balance of Increase Decrease Impairment of
Others of impairment
impairment current period
Shanghai Bengang Metallurgical
229936718.57229936718.57
Technology Co. Ltd.Benxi Beitai Steel Sales Co. Ltd. 30000000.00 30000000.00
Benxi POSCO Cold Rolled Sheet
1019781571.101019781571.10
Co. Ltd.Tianjin Bengang Steel Trade Co.
230318095.80230318095.80
Ltd.Changchun Bengang Steel Sales
28144875.3628144875.36
Co. Ltd.Yantai Bengang Steel Sales Co.
219100329.41219100329.41
Ltd.Guangzhou Bengang Steel Trade
200000000.00200000000.00
Co. Ltd.Dalian Benruitong Automotive
65000000.0065000000.00
Materials Technology Co. Ltd.Notes to the financial statements 166Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Beginning Increase/decrease
Beginning
Name of entity Ending balance Ending balance
balance balance of Increase Decrease Impairment of
Others of impairment
impairment current period
Shenyang Bengang Metallurgical
200000000.00200000000.00
Technology Co. Ltd.Total 2222281590.24 2222281590.24
(2) Details of investment in joint Venture and associated
Increase/decrease
Income or
loss on
Beginning
Name of Beginning Other Declaration
Ending
Addition Reduction investment Other Ending
entity balance balance of Comprehensive of Cash balance of
of of recognized Equity Others balance
impairment Income Dividends or Provision impairment
Investment Investment under the Changes
Adjustment Profit
equity
method
1．Joint
Venture
Notes to the financial statements 167Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Increase/decrease
Income or
loss on
Beginning Other Declaration Ending
Name of Beginning
Addition Reduction investment Other Ending
entity balance balance of Comprehensive of Cash balance of
of of recognized Equity Others balance
impairment Income Dividends or Provision impairment
Investment Investment under the Changes
Adjustment Profit
equity
method
2．Associated
Enterprise
Bensteel Baojin
(Shenyang) New
Automotive
46910346.4146910346.41
Materials
Technology
Co.Ltd
Subtotal 46910346.41 46910346.41
Total 46910346.41 46910346.41
Notes to the financial statements 168Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
4. Operating Income and Operating Cost
(1) Operating income and operating cost
Current period Previous period
Items Revenue Cost Revenue Cost
Principal business
28086225442.0729148262789.5529752956987.4830143666528.21
Other business
673924129.88685977515.04598633897.79582130402.92
Total
28760149571.9529834240304.5930351590885.2730725796931.13
(2) Breakdown of operating income and operating cost
Principal Business Principal Business Other Business Other Business
Items
income cost income cost
Classified by business area
： 23542489047.60 24541067315.72 673924129.88 685977515.04 Including Domestic
4543736394.474607195473.83--
Abroad
Total 28086225442.07 29148262789.55 673924129.88 685977515.04
Classified by the time of
commodity transfer
Including: recognize at a
28086225442.0729148262789.55673253327.88685977515.04
certain point in time
recognize over a
670802.00
certain period of time
28086225442.0729148262789.55673924129.88685977515.04
Total
5. Income on investment
Items Current period Previous period
Income from long-term equity investment (equity
-439659.58
method)
Investment income from disposal of financial assets
-2502067.50
held for trading
Investment income from debt restructuring 694683.35
Others -31605308.28
Total -31605308.28 -2247043.73
Notes to the financial statements 169Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
15. Supplementary information
(1) Details of non-recurring profit and loss
Items Amount Notes
Gains and losses on disposal of non-current assets
including elimination of provision for impairment of -13712227.48
assets
Government grants recognized in profit or loss for
the current period except for those government
grants that are closely related to the Company's
normal business operations in line with national 84071493.95
policies and in accordance with defined criteria and
that have a sustained impact on the Company's
profit or loss
Gains and losses from changes in the fair value of
financial assets and liabilities held by non-financial
corporations and gains and losses from the disposal
of financial assets and liabilities except for
effective hedging operations related to the
Company's normal business operations
Occupancy fees charged to non-financial
corporations included in profit or loss for the period
Gains and losses on entrusted investments or
management of assets
Gains and losses on external entrusted loans
Loss of assets due to force majeure factors such as
natural disasters
Reversal of provision for impairment of receivables
individually tested for impairment
The cost of investments in subsidiaries associates
and joint ventures acquired by an enterprise is less
than its share of the gain arising from the fair value
Notes to the financial statements 170Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items Amount Notes
of the investee's identifiable net assets at the time of
investment acquisition
Net profit or loss for the period from the beginning
of the period to the date of consolidation of
subsidiaries resulting from a business combination
under the same control
Gains and losses on exchange of non-monetary
assets
Debt restructuring gains and losses
One-time costs incurred by the enterprise due to the
fact that the relevant business activities are no
longer continuing such as expenses for relocating
employees
Profit and loss affected due to the adjustments of
requirements of taxation accounting and other laws
and regulations
One-time share-based payment expense recognized
for cancellation and modification of equity incentive
plans
For cash-settled share-based payments gains and
losses arising from changes in the fair value of
employee compensation payable after the date of
exercise of options
Gains and losses arising from changes in the fair
value of investment properties subsequently
measured using the fair value model
Gains arising from transactions at significantly
unfair prices
Gains and losses arising from contingencies
unrelated to the Company's normal business
operations
Notes to the financial statements 171Bengang Steel Plates Co. Ltd.Semi-annual 2024
Notes to the financial statements
Items Amount Notes
Trustee income from trust operations
Other non-operating revenue and expenditure other
5115874.05
than above items
Other non-recurring profit and loss
Subtotal 75475140.52
Impact of income tax 4003960.33
Impact of minority interests (after tax) 768711.98
Total 70702468.21
(2) Net asset yield and earnings per share
Weighted average net Earnings per share
Profit in the Reporting Period
assets yield (%) Basic EPS Diluted EPS
Net profit attributable to ordinary
-9.55-0.3775-0.3775
shareholders
Net profit attributable to ordinary
shareholders after deducting non- -10.01 -0.3947 -0.3947
recurring profit and loss
Note: Assuming that the company's convertible bonds are converted into common shares
the number of common shares outstanding during the period will increase by
1425573949.37 shares and the net profit will increase by RMB 114512878.34 thereby
increasing earnings per share by RMB 0.08 per share indicating that the potential common
shares are not dilutive but anti-dilutive so they are not taken into account in calculating
diluted earnings per share. Diluted earnings per share are determined based on basic
earnings per share.Bengang Steel Plates Co. Ltd.
27 August 2024
Notes to the financial statements 172
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