Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Bengang Steel Plates Co. Ltd.Semi-Annual Report 2024

August 2024

1Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Ⅰ. Important Notice Table of Contents and Definitions

The Board of Directors the Supervisory Committee and the Directors members of the Supervisory

Committee and senior management of the Company guarantee that there are no misrepresentations

or misleading statements or material omission in this report and individually and collectively accept

full responsibility for the authenticity accuracy and integrity of the information contained in this

report.Huang Zuowei the person in charge of the company Zheng Zhengli the person in charge of

accounting work and Sun Yanbin the person in charge of the accounting organization (accounting

officer) hereby confirm that the financial report in this semi-annual report is true accurate and

complete.All directors have attended the board meeting for reviewing this report.This report involves forward-looking statements such as future plans and does not constitute a

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

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

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

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

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

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

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

designated media. Investors are kindly requested to pay attention to investment risks.The Company plans not to pay cash dividends issue bonus shares or increase capital by converting

reserves.

2Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Table of Contents

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

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

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

IV. Corporate Governance ........................... 24

V. Environment and Social Responsibilities.......... 26

VI. Important Events ............................... 31

VII. Status of Share Capital Changes and Sharehold.. 65

VIII. Status of Preferred Shares ................... 65

IX. Status of Bonds ................................ 66

X. Financial Report ................................ 70

3Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Reference File Directory

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

financial officer and chief accountant;

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

reporting period;

3. Semi-annual reports published in other securities markets.

4Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Definition

Terms to be defined Refers to Content of Definition

Bengang Bancai the Company the

Refers to Bengang Steel Plates Co. Ltd.Listed Company

Angang Group Refers to Anshan Iron and Steel Group Co. Ltd.Bengang Group Refers to Bengang Group Co. Ltd.Bengang Steel Co. Bengang Co. Refers to Benxi Steel & Iron (Group) Co. Ltd.SSE Refers to Shenzhen Stock Exchange

Liaoning Provincial State-asset Liaoning State-owned Asset Supervisory and

Refers to

Administration Management Committee

Bengang Posco Refers to Bengang Posco Cold-rolled Sheet Co. Ltd.Angang Finance Co. Refers to Ansteel Group Finance Co. Ltd.Angang Refers to Anshan Iron and Steel Co. Ltd.Pangang Group Vanadium Titanium Resources Co.Vanadium Titanium Refers to

Ltd.

5Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Ⅱ. Company Profile and Main Financial Index

I. Company Information

Stock abbreviation Bengang Bancai Bengangban B Stock Code 000761、200761

Stock exchange for listing Shenzhen Stock Exchange

Company name in Chinese 本钢板材股份有限公司

Abbreviation of Company

name in Chinese 本钢板材

Company name in English

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

name in English (If any) BSP

Legal representative Huang Zuowei

II. Contact Information

Secretary of the Board Representative of Stock Affairs

Name Zheng Zhengli Chen Liwen

No1-1 Gangtie Road Pingshan District No1-1 Gangtie Road Pingshan District

Address

Benxi City Liaoning Province Benxi City Liaoning Province

Tel 024-47827003 024-47828980

Fax 024-47827004 024-47827004

Email zhengzhengli76@126.com bgbc000761@126.com

III. Other Information

1.Contact Information of the Company

Whether the registered address office address postal code company website and email address have changed

□ Applicable √ Not applicable

The company's registered address office address postal code company website email address and etc. have not

changed during the reporting period. Please refer to Annual Report 2023 for details.

6Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

2. Place for information disclosure

Whether the information disclosure and place for consulting have changed

□ Applicable √ Not applicable

Name of newspaper selected by the Company for information release website appointed by CSRC for publishing

semi-annual report and lodging address of semi-annual report of the Company have not changed during the reporting

period. Please refer to Annual Report 2023 for details

3. Other related information

Whether other related information have changed

□ Applicable √ Not applicable

IV. Summary of Accounting Data and Financial Index

Whether the Company makes retroactive adjustment or restatement of the accounting data of the previous year

□ Yes √ No

Increase or decrease in this

Same period in previous

This reporting period reporting period over the

year

previous year

Operating income 28364539286.80 30567409205.03 -7.21%

Net profit attributable to the shareholders

-1550950137.71-1004945623.68-54.33%

of the listed company

Net profit attributable to the shareholders

of listed company after deducting non- -1621652605.92 -1007279338.85 -60.99%

recurring gain/loss

Net cash flows generated by operating

1095091396.544662637281.81-76.51%

activities

Basic earnings per share -0.3775 -0.2446 -54.33%

Diluted earnings per share -0.3775 -0.1558 -142.30%

ROE -9.55% -5.49% -4.06%

Increase or decrease at the

At the end of this reporting At the end of previous

end of this reporting period

period reporting period

over the previous year

Total assets 45631488543.54 46181979851.06 -1.19%

Net assets attributable to shareholders of

15462920341.5617009969496.07-9.09%

the listed company

7Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

V. Differences between Domestic and Foreign Accounting Standards

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

accounting standards.□Applicable √ Not applicable

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

accounting standards during the reporting period.

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

accounting standards.□ Applicable √ Not applicable

There is no differences of net profit and net assets disclosed in financial reports prepared under overseas and

Chinese accounting standards during the reporting period.VI. Items and Amount of Non-recurring Gains and Losses

√ Applicable □ Not applicable

Unit: yuan

Items Amount Notes

Profit or loss from disposal of non-current assets

(including the write-off part for which assets impairment -13712227.48

provision is made)

Details of government subsidies recorded into current

profits and loss(except such government subsidy closely

related to the company’s normal business operation，

84071493.95

meeting the regulation of national policy and enjoyed

constantly in certain quota or quantity according to a

certain standard)

Other non-operating revenue and expenditure other than

5115874.05

above items

Less: Impact of income tax 4003960.33

Impact of non-controlling interests (after tax) 768711.98

Total 70702468.21 --

Details of other profit and loss items that meet the definition of non-recurring profit and loss:

□ Applicable√ Not applicable

Explanation for defining non-recurring gains and losses items according to the "Public Offering of Securities Information

Disclosure Explanatory Notice No. 1 – Non-Recurring Gains and Losses" and reasons for defining non-recurring gains

and losses items listed in the document as recurring items.□ Applicable√ Not applicable

There exists no situation of defining non-recurring gains and losses items listed in the document as recurring items.

8Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

III. Management Discussion and Analysis

I. The Company's main business during the reporting period

1. Industry development

In the first half of 2024 the domestic steel industry still presents a "three highs and three lows" pattern of "high output

high cost high inventory low demand low price and low efficiency" and the overall market is in the bottoming stage.Orders and demand are weak supply is stronger than demand and the price of raw materials and fuels is running at a

high level. The actual downward shift of the cost center of gravity is smaller than the downward shift of steel prices. The

overall steel price is weak and the overall steel market is in a contradiction between strong expectations and weak reality.

2. Main business main products and their uses

During the reporting period the company’s main businesses include iron and steel smelting rolling processing power

generation coal chemical industry special steel profiles railways import and export trade scientific research product

sales etc. Basically built a high-quality steel base formed more than 60 varieties more than 7500 specifications of

product series the proportion of high value-added and high-tech products reached more than 80% automotive surface

panels home appliance panels petroleum pipeline steel container panels Leading products such as shipboard etc. are

widely used in the fields of automobiles home appliances petrochemicals aerospace machinery manufacturing energy

and transportation building decoration and metal products and are exported to more than 60 countries and regions.During the reporting period the company's main business did not undergo major changes.

3. Business model

Procurement model: The company's procurement model includes domestic procurement and foreign procurement.Domestic material procurement is carried out through centralized procurement unified bidding price comparison and

negotiation. The procurement of foreign materials is carried out through long-term cooperative procurement direct

procurement open and invited bidding price inquiry price competition negotiation and procurement and is mainly

represented by Benxi Iron and Steel International Trade Corporation.Sales model: The company’s sales are divided into domestic sales and foreign sales. Domestic sales mainly adopt the

direct sales model. Large customers are sold directly by the company and other small and medium customers are sold

through various regional sales subsidiaries. The strong marketing network accumulated in international trade is exported

by its agency company and the agency fee of Benxi Iron and Steel International Trade Co. Ltd. is paid.

4. Main performance drivers

During the reporting period Bengang Plate closely followed the work deployment of Angang Group to "focus on five

key points and promote three new breakthroughs" fully implemented the overall work requirements of Bengang "one

stability two controls three improvements and create five new situations" maintained the strategic focus on automotive

steel insisted on accelerating breakthroughs in risk prevention and control structural adjustment systematic cost

reduction efficiency improvement and people's livelihood highlighted the key breakthroughs in lean management

deepening reform scientific and technological innovation and digital plates and took extreme efficiency improvement

as the key to deepen "accounting management" strengthen production and sales coordination and strive to promote

transformation and upgrading.The company's main operating indicators were achieved: pig iron output was 5.3473 million tons an increase of 318

thousand tons year-on-year; crude steel output was 5.7217 million tons an increase of 52.9 thousand tons year-on-year;

steel output was 8.5029 million tons an increase of 365900 tons year-on-year. Looking back on the work in the first half

of the year it is mainly reflected in the following aspects:

9Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(1) With the "Automobile Steel Strategy" in place the sales of automotive steel hit a record high. Adhere to the

efficiency-centered approach strengthen the strategic focus of automotive steel in leading development strengthen

the chain supplement the chain extend the chain and actively cultivate a robust industrial chain ecosystem. The

sales of automotive steel reached 1.38 million tons an increase of 115.1 thousand tons year-on-year a year-on-year

increase of 9.09%; the sales of OEMs reached 176.7 thousand tons an increase of 91.6 thousand tons year-on-year

a year-on-year increase of 107.64% a record high; the sales of automotive outer panels reached 71 thousand tons a

year-on-year increase of 146%. Actively carry out OEM certification pass 19 users and 44 brand certifications and

are carrying out BMW certification.

(2) We strive for "extreme efficiency" and make operations more efficient. We insist on being user-centric adjusting the

product structure as the core focusing on "production with orders and marginal output" strengthening production

and sales coordination improving the cold-hot ratio and cold-plating ratio promoting the cold rolling efficiency and

the utilization rate of new production lines optimizing the adjustment index and fully promoting efficient

development. The production end broke the monthly production record 11 times and the capacity utilization rate of

high-efficiency galvanizing lines increased significantly. Among them the 5# galvanizing line reached 110.4% an

increase of 4.85% over the previous year and the 3# galvanizing line reached 113.7% an increase of 4.63% over the

previous year. The delivery rate of automobile OEMs has been 100% for four consecutive months.

(3) The company made efforts to "create A level in environmental protection and extreme energy efficiency" and make

the green background more distinct. The company will accelerate the ultra-low emission transformation continue to

carry out the construction of garden-style factories and actively plan energy structure changes and process

optimization and innovation. The company will promote the implementation of 65 ultra-low emission transformation

projects all of which are planned to be completed and put into production by the end of the year; the comprehensive

energy consumption per ton of steel is 564.67kgce/t reaching the advanced level of the industry; the company has

successfully pioneered the low-carbon "semi-steel" process path and automotive steel products can achieve a

comprehensive carbon reduction of more than 30% compared with the long process.

(4) Focusing on "digital empowerment and technological innovation" the driving force for development continues to

increase. Plan the benchmark demonstration of the 5# galvanizing line and the 2300 line dark factory increase model

cooperation and research and development plan the construction of digital projects and it is expected that the digital

projects will create 17.14 million yuan in benefits throughout the year and the 3D job replacement rate will increase

to 67%. Adhere to the dominant position of scientific and technological innovation create original leading

technologies and products and accelerate the development of a series of products such as 2GPa hot-formed steel new

coating products cold-rolled complex phase steel and electro-galvanized deep stamping steel; carry out 4 ton level

new product projects and 3 main product cost reduction projects of 1%. It is expected that the new products will

achieve a revenue of 2.821 billion yuan and a technological innovation of 0.25 billion yuan throughout the year.

(5) The company will make efforts to "market-oriented reform and lean management" to effectively enhance the vitality

of development. The company will further promote the reform of the three systems promote the long-term market-

oriented exit mechanism for employees promote the competitive employment the adjustment of the last-ranked and

the exit system for incompetent managers; further promote the integration of institutions and the optimization of

responsibilities; improve the classification assessment mechanism expand the "four-to" concept strengthen the job

performance management of all employees and improve the performance assessment mechanism. The company will

adhere to "benchmarking + lean" focus on the combination of lean operation and centralized and consistent

management and the integration of lean site and five systems and promote the integration of lean management into

the whole process and chain of production and operation management.

(6) Adhere to the bottom line thinking and strictly observe the red line of safety and environmental protection. Carry out

"four no's and two direct" safety inspections on a regular basis; strengthen the safety supervision of relevant parties

strictly control the "five checkpoints" and implement the "four unifications". Strengthen environmental protection

management increase the intensity of environmental protection assessment and strictly implement the "three

simultaneous" requirements.II. Analysis on Core Competitiveness

10Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

The company adheres to the innovation-driven and "quality plus service" development model with the strategic goal of

building an internationally competitive high-quality plate base a domestic first-class special steel base and a

comprehensive service provider and exerts a strategic leading role focusing on improving quality and efficiency In terms

of product upgrades technological innovation green and intelligent manufacturing we will innovate management ideas

enhance the core competitiveness of enterprises and promote the realization of high-quality green and intelligent

development of enterprises.

1. Manufacturing capacity. Adhere to the efficiency-centered approach firmly establish the strategic determination of

automotive steel to lead development strengthen the chain supplement the chain extend the chain and actively

cultivate a stable industrial chain ecosystem. With the increase of key products represented by automotive steel as

the main line strengthen the application of profit analysis system results optimize resource allocation increase the

development and promotion of cold-rolled wide-width automotive plates electro-galvanized automotive outer plates

and high-level pickled automotive plates create new "core brand" efficiency and continuously improve the

proportion of high value-added products and differentiated profitability. The steelmaking process is mainly based on

stable operation achieving both cost reduction and quality improvement. The key technical and economic indicators

of electric furnaces have reached the international leading level; the steel rolling process while ensuring stable quality

improves the unit operation rate and machine hour output and strives to improve the efficiency of the production

line. With the ultimate cost reduction and carbon reduction ideas the company optimizes the process to organize low-

carbon and emission-reducing automotive steel production and achieves domestic leading levels.

2. Equipment transformation and upgrading. In 2024 the company issued a fixed asset investment plan of 1.945 billion

yuan. A new round of large-scale technical transformation and ultra-low emission transformation represented by key

projects such as the transformation project of the main body of the first cold rolling mill of the cold rolling mill the

dust removal transformation of the refining area of the plate steelmaking plant the dust removal transformation of

the continuous casting and finishing areas of the plate steelmaking plant the environmental governance of the first

and second mixing systems of the sintering machine of the plate ironmaking plant the transformation of the finishing

dust removal system of the plate 2300 production line the dust removal project of the finishing mill of the plate

special steel hot rolling bar line and the transformation of the coking wastewater of the plate ironmaking plant have

been implemented. At present the transformation project of the main body of the first cold rolling mill of the cold

rolling mill of the cold rolling mill has been put into operation.

3. New product development capabilities. The company has successfully developed 42 new product grades all of which

have been sold on the market. In response to the national new energy development strategy the company has fully

utilized the advantages of "sales research and production" integration and successfully developed 700MPa high-

strength photovoltaic bracket steel GF700 which has extremely high pressure resistance and wind resistance while

meeting the requirements of photovoltaic bracket forming and production. The company has explored emerging

markets and developed 500MPa grade pile pipe steel HK490 achieving the first stable supply of hot-rolled products

exported to the Japanese market by Bengang. Aiming at the international market we have developed and exported

molycop grinding ball steel S650A using large square billet continuous casting and terminal reduction processes to

improve density and reduce carbon segregation. The company has completed the first batch of 400 tons of production

under the contract and all indicators are qualified.

4. Technological innovation ability. In order to strengthen the cooperation between schools and enterprises the company

has signed 8 foreign technical cooperation projects with Dalian University of Technology Northeastern University

and others to promote the transplantation of mature scientific and technological achievements of universities and

institutes to enterprises. In terms of standards the company participated in the revision of 1 international standard

presided over the revision of 2 national standards and drafted 30 enterprise standards. In terms of intellectual property

rights the company has accepted 81 patents including 30 inventions and 6 overseas patents; 38 patents have been

authorized including 11 invention patents. In terms of scientific and technological achievements the company

participated in the project "Development and Application of Key Common Technologies for Electromagnetic Control

of Large Metal Billets Preparation" and won the second prize of the National Science and Technology Progress Award

"Development and Application of High-Performance and Low-Cost Cold-Rolled Galvanized Dual-Phase Steel Series

Products" won the second prize of Metallurgical Science and Technology Progress and "Car Body Lightweight Hot

Stamping Steel Series Products" won the third prize of Liaoning State-Owned Enterprises "Spark" Innovation and

Creativity Competition.

11Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

5. Green development capability. In accordance with the strict policy requirements of the country and Liaoning Province

for the steel industry and local ultra-low emissions the company strives to achieve ultra-low emissions by the end of

2025 and build the company into an "ecological steel plant" that is deeply integrated and harmonious with urban

development. In 2024 the company's ultra-low emission projects have made significant progress with a total of 73

key projects implemented. In terms of transportation the company has completely phased out the original transport

vehicles below the National 3 emission standards and successfully replaced them with new energy trams or vehicles

that meet the National 5 and above emission standards laying a solid foundation for building a green logistics system.In terms of green steel market development the company successfully carried out semi-steel experiments and

successfully opened up the process path to expand the green steel product line and enhance market competitiveness.At the same time the company has established an LCA (life cycle assessment) carbon data platform to fully prepare

for future EPD (environmental product declaration) certification work demonstrating the company's leading position

and forward-looking vision in the field of green manufacturing.

6. Intelligent manufacturing capabilities. In 2024 the company will focus on promoting the construction of smart

factories in the cold rolling three-cold area and hot rolling 2300 smart factories. Focusing on the core development

strategy of plate automotive steel the company will promote digital transformation. Through school-enterprise

cooperation the company will upgrade the intelligent model of the main production line. According to the 14th Five-

Year Plan the completion rate of the four-in-one transformation of the main production line will increase by 9% the

replacement rate of 3D positions will increase by 11% the centralization rate of the operation room will increase by

9% and the automation rate of the production line will increase by 5%.

III. Analysis on Main Business

Please refer to the relevant content of "I. Main Business Engaged in the Reporting Period".Year-on-year changes in major financial data.Unit: Yuan

Current Period Previous Period Change Reason

Operating income 28364539286.80 30567409205.03 -7.21%

Operating cost 29177241820.27 30714640963.91 -5.01%

Selling and

78868443.1369901883.2412.83%

distribution expenses

General and

administrative 351694254.72 339569021.49 3.57%

expenses

Financial expenses 135182892.48 161557765.87 -16.33%

Income tax expenses 34100570.67 33191710.84 2.74%

Research and

development 970755841.00 969879939.00 0.09%

investment

Net cash flows from Due to increase in cash

1095091396.544662637281.81-76.51%

operating activities payments

Due to the decrease of

Net cash flows from expenditure on asset

-508521987.15-893054682.05-43.06%

investing activities purchase and

construction

Net cash flows from Due to increase of new

-611953198.81-1961254120.62-68.80%

financing activities borrowings

Net increase in cash Due to increase in cash

-2505569.001838873251.94-100.14%

and cash equivalents payments

Significant changes in the company's profit composition or source of profit during the reporting period

□ Applicable √ Not applicable

There was no major change in the company's profit composition or source of profit during the reporting period.Operating income composition

12Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Unit: Yuan

Current period Previous period Change over

Amount Proportion Amount Proportion previous period

Total operating

28364539286.80100%30567409205.03100%-7.21%

income

By industries

Industry 28364539286.80 100.00% 30567409205.03 100.00% -7.21%

By products

Steel plate 27720971567.89 97.73% 29094813444.07 95.18% -4.72%

Others 643567718.91 2.27% 1472595760.96 4.82% -56.30%

By region

Domestic 23404921383.53 82.51% 27000481311.59 88.33% -13.32%

Abroad 4959617903.27 17.49% 3566927893.44 11.67% 39.04%

Industry Product and Regions Accounting for the Company’s Operating Income or Profit over 10%

√ Applicable □ Not applicable

Unit: Yuan

Operating Operating costs Gross margin

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

income

over last year year year

By industries

Industry 28364539286.80 29177241820.27 -2.87% -7.21% -4.93% -2.46%

By products

Steel plate 27720971567.89 28521627207.05 -2.89% -4.72% -2.50% -2.35%

Others 643567718.91 655614613.22 -1.87% -56.30% -55.14% -2.62%

By regions

Domestic 23404921383.53 24171627813.37 -3.28% -13.32% -10.93% -2.78%

Abroad 4959617903.27 5005614006.90 -0.93% 39.04% 39.89% -0.61%

When the statistical caliber of the company's main business data is adjusted during the reporting period the company's

main business data adjusted according to the caliber at the end of the reporting period in the most recent period

□ Applicable √ Not applicable

IV. Analysis of Non-core Business

√ Applicable □ Not applicable

Unit: Yuan

Proportion in total

Amount Explanation of cause Sustainable (yes or no)

profit

Income on

-31605308.28 2.15% Due to bank bill discount No

investment

Assets disposal Due to impairment of

-14313228.28 0.97% No

gains inventory

Non-operating Due to the gain from scarp

8976877.17 -0.61% No

income of non-current assets

Non-operating

27576186.51 -1.87% Due to scrap of assets No

expenses

V. Assets and Liabilities

1. Significant Change of Assets Components

Unit: Yuan

13Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

At the end of this reporting At the end of the Same period

period in previous year

Proportio Proportio Proportion

Notes to significant changes

n in the n in the change

Amount Amount

total total

assets assets

Cash at bank and

1992324226.634.37%2194654161.344.75%-0.38%

on hand

Accounts

1327038676.852.91%1328532598.472.88%0.03%

receivable

Inventories 7854274573.95 17.21% 7708372894.81 16.69% 0.52%

Long-term equity

46910346.410.10%46910346.410.10%0.00%

investments

Fixed assets 24878573917.57 54.52% 25028192964.67 54.19% 0.33%

Construction in

4156908135.689.11%4308404147.319.33%-0.22%

progress

Right-of-use

1566663478.213.43%1319616179.372.86%0.57%

assets

Short-term loans 495730592.00 1.09% 328000000.00 0.71% 0.38%

Contract

2925386458.146.41%3303108592.387.15%-0.74%

liabilities

Long-term loans 2319589918.00 5.08% 1723726700.80 3.73% 1.35%

Lease liabilities 1578684995.29 3.46% 1342427252.45 2.91% 0.55%

2. Main overseas assets

□ Applicable √ Not applicable

3. Assets and liabilities measured at fair value

√ Applicable □ Not applicable

Unit: yuan

Profit and

Accumulated

loss from Purchase

fair value Impairment Sales amount

Beginning changes in amount Other Ending

Item changes accrued in the during the

balance fair value in during the changes balance

recognized in current period current period

the current current period

equity

period

Financial

assets

4.Other equity

974463039.

instrument 974463039.83 -81576482.17

83

investments

Subtotal of

974463039.

financial 974463039.83 -81576482.17

83

assets

974463039.

Total 974463039.83 -81576482.17

83

Financial

0.000.00

liabilities

Other changes

Whether there are significant changes in the measurement attributes of the company's main assets during the reporting period

14Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

□ Applicable √ Not applicable

4. Restricted Assets by the End of the Period

Items 30 Jun 2024

Gross carrying Reason of

Book value Situation

amount restriction

Cash at bank and Deposit for notes

810054824.11810054824.11

on hand and L/C

Notes receivables 383067330.50 383067330.50 Pledged

Total 1193122154.61 1193122154.61

15Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

VI. Analysis of investment status

1. Overall situation

□ Applicable √ Not applicable

2. Major equity investments obtained during the reporting period

□ Applicable √ Not applicable

3. Significant non-equity investment in progress during the reporting period

□ Applicable √ Not applicable

4. Financial asset investment

(1) Securities investment

□ Applicable √ Not applicable

There was no securities investment in the company during the reporting period.

(2) Investment in derivatives

□ Applicable √ Not applicable

There was no derivative investment in the company during the reporting period.

5. Use of Raised Funds

√ Applicable □ Not applicable

(1) Use of Raised Funds

√Applicable □ Not applicable

Unit: 10 thousand yuan

16Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

The total

amount

of funds Cumulati Cumulativ The

Amount of

raised ve total e purpose

The total funds

Used The total for amount proportion and

Way of Net value amount of raised after

Total amount amount of used change of funds of total destination

Year raising of raised funds being idle

of raised funds raised fund amount of of raised for raised of the

funds funds raised not for more

this year funds raised purpose change funds for raised

used than two

during of changes of funds not

years

the purpose purposes yet used

reportin

g period

Issue of

2020 convertib 680000 675920 556.29 476787.84 199132.16 Deposit 101479

le bonds

Total -- 680000 675920 556.29 476787.84 0 0 0.00% 199132.16 -- 101479

Description of the overall use of raised funds

17Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

1. Utilization of raised funds investment projects

For details on the actual use of the company's raised funds from January to June 2024 please refer to the attached table "Comparison Table of

the Use of Funds Raised from Public Issuance of Convertible Corporate Bonds".

2. Changes in the implementation location and implementation methods of the raised funds investment projects

During the reporting period the company did not change the implementation locations or implementation methods of the raised funds investment

projects.

3. Initial investment and replacement of raised funds investment projects

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

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

agreeing that the company will use raised funds to replace self-raised funds pre-invested in raised funds investment projects and paid issuance

expenses with a total replacement amount of RMB 366180860.17. This replacement does not involve a disguised change in the use of raised

funds does not affect the normal progress of raised funds investment projects and the replacement time is no more than 6 months from the time

the raised funds arrive which is in compliance with relevant laws and regulations.Before the raised funds were received the company had used self-raised funds to pre-invest in the raised projects according to the project progress.As of May 31 2020 the amount of self-raised funds pre-invested was RMB 365630860.17 including the steel plant No. 8 casting machine

project was RMB 76278945.59 the iron plant No. 5 blast furnace capacity replacement project was RMB 119043290.09 the special steel

electric furnace upgrade and transformation project was RMB 59948807.90 the CCPP power generation project was RMB 95098084.16 and

the steel plant No. 4-6 converter environmental protection transformation project was RMB 15261732.43. As of July 6 2020 the above-

mentioned issuance expenses of RMB 55000.00 paid by the company's own funds were replaced with raised funds.From March 1 2019 to May 31 2021 the company used self-raised funds to pay for the construction of projects funded by the raised funds

amounting to RMB 1082356809.47 including RMB 180000.00 for the high-grade high-magnetic induction non-oriented silicon steel project

RMB 55364729.08 for the No. 8 casting machine project of the steelmaking plant RMB 628049033.12 for the capacity replacement project

of the No. 5 blast furnace of the ironmaking plant RMB 253298156.22 for the upgrading and transformation project of the special steel electric

furnace RMB 115353050.36 for the CCPP power generation project and RMB 30111840.69 for the environmental protection transformation

project of the No. 4-6 converters of the steelmaking plant. The company has transferred the above amounts from the raised funds account to the

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

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

17508088.97 for the Capacity Replacement Project of the No. 5 Blast Furnace of the Ironmaking Plant RMB 364155482.35 for the Upgrading

and Reconstruction Project of the Special Steel Electric Furnace RMB 186441497.75 for the CCPP Power Generation Project and RMB

33221738.55 for the Environmental Protection Reconstruction Project of the No. 4 and No. 6 Converters of the Steelmaking Plant. The company

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

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

ironmaking plant RMB 19796661.74 for the CCPP power generation project RMB 429392157.76 for the upgrading and transformation

project of the special steel electric furnace RMB 21452968.70 for the environmental protection transformation project of No. 4-6 converters of

the steelmaking plant and RMB 8544658.29 for the No. 8 casting machine project of the steelmaking plant. As of December 31 2023 the

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

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

5111121.59 for the capacity replacement project of the No. 5 blast furnace of the ironmaking plant RMB 60162375.13 for the upgrading and

transformation project of the special steel electric furnace RMB 5454868.60 for the CCPP power generation project and RMB 6570340.48

for the environmental protection transformation project of the No. 4-6 converters of the steelmaking plant. As of June 30 2024 the company has

not yet transferred the funds from the raised funds account to the general deposit account.

4. Using idle raised funds to temporarily supplement working capital

During the reporting period according to the construction progress of the company's raised funds investment projects and the plan for the use of

raised funds part of the funds raised by the company's non-public offering is temporarily idle. According to the provisions of the China Securities

Regulatory Commission's "Guidelines for the Supervision of Listed Companies No. 2 - Regulatory Requirements for the Management and Use

18Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

of Raised Funds by Listed Companies (Revised in 2022)" (CSRC Announcement [2022] No. 15) and other regulatory documents in line with

the principle of maximizing shareholder interests on the premise of ensuring the capital demand of the raised funds investment projects and the

normal progress of the raised funds investment projects in order to improve the efficiency of the use of raised funds further reduce the company's

financial costs reduce financial expenditures and protect the interests of the majority of investors the company intends to use idle raised funds

to temporarily supplement working capital and the use period shall not exceed 12 months from the date of approval by the board of directors.Supplementing working capital will save financial expenses for the company.

(1) The funds raised from the public issuance of convertible corporate bonds in July 2020 will temporarily supplement working capital

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

silicon steel project RMB220000000.00 for the No. 8 casting machine project of the steel plant RMB800000000.00 for the capacity

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

project RMB700000000.00 for the CCPP power generation project and RMB150000000.00 for the environmental protection renovation

project of No. 4-6 converters of the steel plant) to temporarily supplement working capital. The matter was reviewed and approved at the 14th

meeting of the 8th Board of Directors and the 12th meeting of the 8th Board of Supervisors held on July 28 2020. The company's independent

directors have expressed their clear consent. The time for supplementing working capital shall not exceed 12 months.

(2) The funds raised from the public issuance of convertible corporate bonds in July 2021 will temporarily supplement working capital

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

silicon steel project RMB 150000000.00 for the No. 8 casting machine project of the steel plant RMB 160000000.00 for the capacity

replacement project of No. 5 blast furnace of the iron plant RMB 1000000000.00 for the special steel electric furnace upgrade and renovation

project RMB 590000000.00 for the CCPP power generation project and RMB 120000000.00 for the environmental protection renovation

project of No. 4-6 converters of the steel plant) to temporarily supplement working capital. The matter was reviewed and approved at the 19th

meeting of the 8th Board of Directors and the 17th meeting of the 8th Board of Supervisors held on July 28 2021. The company's independent

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

supplement working capital and issued the "Guotai Junan Securities Co. Ltd.'s Verification Opinion on the Company's Use of Idle Raised Funds

to Temporarily Supplement Working Capital".As of December 31 2021 the Company has returned all of the idle raised funds of RMB3030000000.00 used to temporarily supplement

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

(3) The funds raised from the public issuance of convertible corporate bonds in July 2022 will temporarily supplement working capital

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

silicon steel project RMB 165000000.00 for the No. 8 casting machine project of the steel plant RMB 175000000.00 for the capacity

replacement project of No. 5 blast furnace of the iron plant RMB 933000000.00 for the special steel electric furnace upgrade and renovation

project RMB 578000000.00 for the CCPP power generation project and RMB 148000000.00 for the environmental protection renovation

project of No. 4-6 converters of the steel plant) to temporarily supplement working capital. The matter was reviewed and approved at the third

meeting of the ninth board of directors and the third meeting of the ninth board of supervisors held on July 28 2022. The company's independent

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

supplement working capital and issued the "Guotai Junan Securities Co. Ltd.'s Verification Opinion on the Company's Use of Idle Raised Funds

to Temporarily Supplement Working Capital".

(4) Funds raised from non-public offering of shares in July 2023 will temporarily supplement working capital

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

silicon steel project RMB 125000000.00 for the No. 8 casting machine project of the steel plant RMB 145000000.00 for the capacity

replacement project of No. 5 blast furnace of the iron plant RMB 188000000.00 for the special steel electric furnace upgrade and renovation

project RMB 393200000.00 for the CCPP power generation project and RMB 95000000.00 for the environmental protection renovation

project of No. 4-6 converters of the steel plant) to temporarily supplement working capital. The matter was reviewed and approved at the 17th

meeting of the 9th Board of Directors and the 12th meeting of the 9th Board of Supervisors held on July 19 2023. The company's independent

directors have expressed their clear consent. The time for supplementing working capital shall not exceed 12 months.The sponsor of the company's public issuance of convertible bonds agreed that the company could use idle raised funds to temporarily supplement

working capital and issued the "Guotai Junan Securities Co. Ltd.'s Verification Opinion on the Company's Use of Idle Raised Funds to

19Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Temporarily Supplement Working Capital".As of June 30 2024 the company used idle funds raised from the public issuance of convertible corporate bonds to temporarily supplement the

balance of RMB1961200000.00 in working capital.

(5) Cash management using idle raised funds

The company does not use idle raised funds for cash management.

(6) Use of surplus raised funds

The company does not use the surplus funds from the raised funds investment projects for other raised funds investment projects or non-raised

funds investment projects.

(7) Utilization of excess funds

The company does not have any situation of over-using raised funds.

(8) Purpose and destination of unused raised funds

As of June 30 2024 except for the advance investment and replacement of investment projects with raised funds and the temporary supplement

of working capital with idle raised funds as described in “(III) Advance investment and replacement of investment projects with raised funds”

and “(IV) Temporary supplement of working capital with idle raised funds” the remaining raised funds will be temporarily deposited in the

special account for raised funds.

(9) Other uses of raised funds

The company does not have any other use of raised funds.

(2) Fundraising commitments

√Applicable □ Not applicable

Unit: 10 thousand yuan

Accumul

Whether Investme Date of Whether

Total ated

the Raised Amount nt the Benefits Whether the

amount investme

project funds invested progress project achieved the project

Committed investment of nt

has been promised during as of the reaches during expected feasibility

projects and over- investme amount

changed total the end of the the the benefits has

raised funds nt after as of the

(includin investme reporting period expected reporting are changed

adjustme end of the

g partial nt period (3)＝ usable period achieved significan

nt (1) period

changes) (2)/(1) status tly

(2)

Committed invested projects

High grade high

Not

magnetic induction

No 101620 101620 0 141 0.14% applicabl No

non-oriented silicon

e

steel project

Steelmaking Plant No.

8 Casting Machine No 33500 33500 443.9 20132.3 60.10% 31.10.2020 -28201.2 No No

Project

Capacity Replacement

Project of No. 5 Blast -

No 96000 96000 15.66 80182.6 83.52% 30.11.2020 No No

Furnace in Ironmaking 21501.16

Plant

20Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Special Steel Electric Not

Furnace Upgrade No 141600 141600 0 123025.3 86.88% applicabl No

Project e

CCPP power

No 83300 83300 38.29 42873.11 51.47% 31.12.2022 14370.15 Yes No

generation project

Steelmaking plant No.

4-6 converter Not

environmental No 19900 19900 58.44 10433.53 52.43% 31.12.2020 applicabl No

protection renovation e

project

Not

Repayment of bank

No 200000 200000 0 200000 100.00% applicabl No

loans

e

Subtotal -- 675920 675920 556.29 476787.84 -- -- -35332.21 -- --

Over-raised funds

Not applicable

Total -- 675920 675920 556.29 476787.84 -- -- -35332.21 -- --

Situation and cause of

failure to meet planned

progress or projected

earnings (disclosed by

project) (Reasons for High-grade high-magnetic-induction non-oriented silicon steel engineering projects are greatly affected byselecting “Not market factors. The company adjust our development strategies and continuously track market changes.applicable” for“whether the expectedbenefits have beenachieved”)

Description of major

changes in project None.feasibility

Amount use and

progress of usage of Not applicable

over-raised funds

Change in the

implementation

location of the raised Not applicable

funds investment

project

Adjustment of

implementation

methods of fund- Not applicable

raising investment

projects

The initial investment Applicable

and replacement of the

fundraising investment Refer to the Contents in Special Report III 3

project

Temporary Applicable

replenishment of

working capital with Refer to the Contents in Special Report III 4

idle raised funds

The amount and reason

for the rest of raised

Not applicable

fund in the project

implementation

Use and destination of

raised funds that have Unused raised funds are deposited in the special account for raised funds.not been used

Problems or other None.

21Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

situations in the use

and disclosure of raised

funds

(3) The situation for raised funds change project

□ Applicable √ Not applicable

During the reporting period the company did not have any changes in the fundraising project.VII. Significant Assets and Equity Sold in Reporting Period

1. Significant Assets Sold

□ Applicable √ Not applicable

2. Substantial Equity Sold

□ Applicable √ Not applicable

VIII. Analysis on Main Subsidiaries and Share Participating Companies

√ Applicable □ Not applicable

Main subsidiaries and the joint-stock companies influencing over 10% net profit of the Company

Unit: Yuan

Company Company Main Registered Operating

Total assets Net assets Turnover Net Profit

Name type business capital profit

Bengang

Puxiang

Processing

Cool

Subsidiary and sales of 192000000 5495628297.35 2482555227.53 4625594944.57 208259632.58 175927445.95

Rolling

steel

Steel Sheet

Co. Ltd.Acquirement and disposal of subsidiaries during the reporting period

□ Applicable √ Not applicable

Illustration of main joint-stock companies

IX. Structured Entities controlled by the Company

□ Applicable √ Not applicable

X. Risks and countermeasures for the Company

1. Environmental protection risks

Under the constraints of the national "carbon peak" and "carbon neutrality" goals environmental protection departments

have increased their supervision of pollution control in the steel industry. Steel companies' environmental protection

investment and operating costs have increased and the environmental challenges they face have increased.Response measures: First establish and improve a green low-carbon and circular production and operation system that

is through energy-saving and environmental protection equipment upgrades and the promotion and application of

22Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

advanced technologies further improve resource and energy utilization efficiency promote ultra-low emission

transformation and comprehensive pollutant control and continuously reduce carbon emission intensity; second actively

carry out product ecological design and life cycle evaluation to create green and low-carbon products; third strengthen

the operation and maintenance and standardized operation control of existing environmental protection equipment and

facilities and focus on strengthening the monitoring of air pollution sources; fourth strengthen the control of raw fuel

procurement quality to achieve emission reduction at the source.

2. Market risks

In 2024 the domestic economic recovery has not progressed as expected there is still uncertainty in the growth of

downstream demand and the risk of overcapacity caused by the continued growth in supply still exists. The steel industry

is in a period of transition from incremental development to stock optimization. It will continue to face the challenge of

supply and demand imbalance at present and for a long time in the future and market competition will become more

intense.Response measures: Deepen "predictive" operations strengthen market analysis and judgment accurately control the

market rhythm and dynamically adjust marketing strategies; increase market development efforts strengthen regional

market collaboration deepen strategic long-term cooperation and optimize resource flow allocation; continue to optimize

product structure continuously increase the proportion of unique leading and key products steadily improve product

quality and minimize costs; deeply cultivate the terminal market effectively improve customer precision services and

satisfaction levels and continuously enhance product market competitiveness.

3. The risk of raw material price and supply

The global iron ore supply monopoly is unlikely to change in the short term. Iron ore is highly dependent on foreign

countries coking coal and other resources are scarce and the independent controllable capacity of the steel industry chain

supply chain is relatively weak; geopolitical conflicts are intensifying supply chain security is fragile and the risk of safe

supply is increasing. The financial attributes of ore coal and coke black resources are enhanced and domestic and foreign

hot money speculation is frequent; energy-saving and emission reduction policies continue to deepen upstream coal and

coke enterprises have limited production capacity and various internal and external factors have led to frequent

fluctuations in raw material prices and enterprises are under great pressure to reduce costs and increase efficiency.Response measures: Strengthen the analysis and judgment of raw material supply and market demand build a raw

material procurement model scientifically control procurement opportunities and adjust procurement strategies in a

timely manner; strengthen strategic cooperation in raw material supply consolidate and expand domestic raw material

procurement channels deeply aggregate raw material resources accelerate the formation of domestic and foreign supply

chain security structures and enhance the price advantages of scale procurement; optimize the production charge structure

adjust the raw material procurement structure strengthen benchmarking and potential tapping optimize the coal and ore

blending structure further reduce production costs reasonably control raw material inventories effectively reduce the

adverse effects of raw material price fluctuations and minimize raw material costs.XI. Implementation of the "Dual Improvement of Quality and Return" Action Plan

Whether the company has disclosed the announcement of the "double improvement of quality and return" action plan

□ Yes √ No

23Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

IV. Corporate Governance

I. Annual General Meeting of Shareholders and Temporary General Meeting of Shareholders

held during the Reporting Period

1. General meeting of shareholders during the reporting period

Investors’

Meeting session Meeting type Date of convening Date of disclosure Disclosure index

participation ratio

Announcement of

Resolutions of 2023

The annual general Annual general

77.10% 23 May 2024 24 May 2024 Annual General

meeting of 2023 meeting

Meeting of

Shareholders

2. Temporary general meeting Request by preferred stockholders whose voting rights restore

□ Applicable √ Not applicable

II. Change of Directors Supervisors and Senior Executives

√Applicable □ Not applicable

Name Position Type of change Date Reason

Jiang Zhenyu Employee Supervisor Resignation 22 Mar 2024 Voluntary resignation

Mao Xiuru Employee Supervisor Elected 22 Mar 2024 Elected

Liu Yansong Deputy General Manager Dismissal 1 Apr 2024 Job Change

III. Profit Distribution or Capital Reserve Conversion Proposal in the Reporting Period

□ Applicable √ Not applicable

The company plans not to distribute cash dividends issue bonus shares or increase capital from the accumulation fund

in the first half of the year.

24Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

IV. Implementation of the company’s equity incentive plan employee stock ownership plan or

other employee incentive measures

□ Applicable √ Not applicable

During the reporting period the company had no equity incentive plan employee stock ownership plan or other

employee incentive measures and their implementation.

25Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

V. Environment and Social Responsibilities

I. Major environmental issues

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

environmental protection department

√ Yes □ No

Policies and industrial standards in environmental protection

Implement the Environmental Protection Law of the People’s Republic of China Environmental Impact Assessment Law of the

People’s Republic of ChinaWater Pollution Prevention and Control Law of the People’s Republic of ChinaAtmospheric Pollution

Prevention and Control Law of the People’s Republic of China Soil Pollution Prevention and Control Law of the People’s Republic

of ChinaLaw of the People’s Republic of China on Prevention and Control of Environmental Pollution by Solid Waste and other

related ecological environment policy Water Pollutant emission Standard for Iron and Steel Industry (GB13456-2012) Pollutant

Dismission Standard for Coking Chemical Industry (GB 16171-2012) Air Pollutant emission Standard for Sintering and Sintering

Pellets in Iron and Steel Industry (GB28662-2012) Air Pollutant emission Standard for Iron-making Industry (GB28663-2012) Air

Pollutant Emission Standard for Steel Rolling Industry (GB28665-2012) Air Pollutant Emission Standard for Thermal Power Plants

(GB13223-2011) and other related industry standards.Environmental permits

The company involves 12 pollutant discharge units 10 of which are key pollutant discharge units. They obtained the license for the

first time in December 2018 and in December 2021 they applied for an extension to December 2026 according to the license

management requirements. In 2022 two units had their change application extended to December 2027 and in 2023 one unit had its

change application extended to February 2028. Two units are subject to registration management and they obtained the fixed pollution

source pollution discharge registration receipt in March 2020 which is valid until 2025; in 2024 two units re-applied and were

approved and the validity period is until February 2029 and April 2029 respectively. All units strictly implement the environmental

protection facilities to meet the standards and operate stably strictly control the emission of pollutants and the plate company

discharges pollutants within the scope of the license every year. All units submit quarterly implementation reports and annual reports

online as required.Specific details of industry discharge standards and the discharges of pollutants involved in production and operational activities

Type of

Main The

Main The distribution Emission The Approved Surpass the

pollutants Discharge number of Total

Name pollutants of discharge concentra emission total emission

and specific modes discharge emission

and specific hatch tion standard emission standard

pollutants hatch

pollutants

The total

quantity is

Bengang Energy general

Waste water not

Steel Plates COD Continuous 1 plant sewage 14 50 23.2 Tons None

pollutants confirmed

Co. Ltd. treatment plant

by the

government

The total

quantity is

Bengang Energy general

Waste water Ammonia not

Steel Plates Continuous 1 plant sewage 0.31 8 0.9 Tons None

pollutants nitrogen confirmed

Co. Ltd. treatment plant

by the

government

Bengang Waste gas Continuous Raw material Raw Raw The total

Particulate 406 tons of

Steel Plates pollutants and 191 dumper transfer materials materials quantity is None

Matter Smoke and

Co. Ltd. intermittent station ore 12-15; 25; not

26Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

receiving sintering sintering dust; 5240 confirmed

trough pre- 1.36-28; 50-30; tons of dust by the

batch; iron- ironmaki ironmaking government

making tapping ng 0.76- 25;

yard furnace 8; steelmaking

top fuel steelmaki 20-50;

solvent whole ng 0.6- special steel

grain ore coke 10; 20; coking

trough sintering special 10-50;

machine head steel 0.7- power

dust removal 10; generation

machine tail coking 10-30; cold

dust removal; 0.7-7; rolling 20;

steelmaking power hot rolling

molten steel generatio 20-30.pretreatment n 0.2-7;

north-south cold

backflow rolling 6-

station tundish 18; hot

primary dust rolling 2-

removal 6.secondary dust

removal

refining dust

removal; special

steel electric

furnace refining

furnace; coking

coal adding

coke pushing

dry quenching

chimney

desulfurization

and

denitrification;

power

generation

boiler dust

removal

desulfurization

and

denitrification;

cold rolling acid

regeneration

pickling

straightening

welding

machine

leveling

annealing

roasting; hot

rolling heating

furnace.Sintering

machine

Sintering Sintering

head 13-

machine head; machine

40; coke

coke oven head 200;

oven The total

chimney; power coke oven

chimney quantity is

Bengang Continuous boiler 50-100;

Waste gas Sulfur 7-17; not

Steel Plates and 65 desulfurization; power 1263 tons None

pollutants dioxide power confirmed

Co. Ltd. intermittent cold rolling generation

generatio by the

roasting and 100-200;

n 2-21; government

annealing; hot cold rolling

cold

rolling heating 100; hot

rolling

furnace. rolling 150

11-25;

hot

27Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

rolling 3-

44.

Sintering

machine

head 25-

Sintering

Sintering 77;

head 300;

machine head; coking

coking

coking chimney; chimney The total

chimney

power 77-177; quantity is

Bengang Continuous 150-500;

Waste gas Nitrogen generation power not

Steel Plates and 58 power 3546 tons None

pollutants oxides boiler; cold generatio confirmed

Co. Ltd. intermittent generation

rolling roasting; n 20-60; by the

100-200;

annealing; hot cold government

cold rolling

rolling heating rolling

200; hot

furnace. 84-94;

rolling 300.hot

rolling

10-100.

Pollutants treatment

In 2024 company as a whole enterprise development and environmental protection invest 1.84 billion yuan comprehensively promote

ultra-low emissions transformation work the source reduction process control terminal control of combining technology is

implementing the original plate iron factory in dust removal system transformation plate steel mills steelmaking area dust removal

transformation sintering head electric transformation plate hot rolling mill production line heat treatment transformation plate

resources service branch scrap yard transformation 65 ultra-low emissions transformation project the project can be put into operation

at the end of 2024. Vigorously promote the plate company clean transportation work. More than 1000 materials were managed under

vehicle emission standards 3320 national VI vehicles and 60 electric heavy trucks were introduced old vehicles and non-road mobile

machinery that did not meet ultra-low requirements were phased out and facilities such as power changing stations charging piles

hydrogenation stations and other facilities were laid out on the main transportation routes to broaden the application scenarios of new

energy vehicle services. Build and complete the corresponding transformation of the property holding metering and other related

systems. So far involving the bulk materials and products the six and above vehicle controls are under control state according to the

requirements required for clean transportation function has all realize stable operation the factory transport vehicles and the road

mobile machinery are meet the requirements of ultra-low emissions of clean transportation public clean transportation + electric card

ratio increased from 68% to 81.75% (including: clean transportation 77.07%) reached the plank company ultra-low emissions clean

transportation. The plate company carries out the whole process and the whole process of ultra-low emission transformation of

organized emission unorganized emission and clean transportation which can realize the emission concentration of air pollutants to

meet the requirements of ultra-low emission standards and the environmental protection control ability of the enterprise has been

significantly improved.Environmental-related emergency response plans

Company and its subsidiary in strict accordance with the Emergency Response Law of the People's Republic of China about the

printing

for the record management measures (try out)" and other current laws and regulations to carry out environmental emergency

management complete emergency environmental emergency plan revision to carry out risk assessment and emergency resources

investigation has according to the city bureau management assessment for the record. At the same time each unit of the plate company

shall formulate the 2024 drill plan according to the pre-plan and carry out the corresponding pre-plan drill work.Investment in environmental governance and protection and the payment of environmental protection tax

1. In the first half of 2024 the operation cost of environmental protection facilities was 513 million yuan and the environmental

protection tax was 13.99 million yuan.

2. In 20241.84 billion yuan will be invested to comprehensively upgrade ultra-low emissions.

Environmental self-monitoring program

During the reporting period the monitoring points of pollution sources were 279 flue gas monitoring points 13 waste water monitoring

points 19 factory boundary noise monitoring points and 12 atmospheric dust control points.

(1) There are 279 flue gas monitoring points: 203 organized monitoring points and 76 unorganized monitoring points which are divided

into weekly monthly quarterly half-annual and annual frequency according to the monitoring plan and the routine monitoring task

of disorganized and organized atmospheric flue gas is completed. A total of 352 monitoring data were obtained in the first half of the

year.

28Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(2) 13 wastewater monitoring points: the monitoring was divided into weekly monthly and quarterly frequency according to the

monitoring plan and 632 monitoring data were obtained in the first half of the year.

(3) 19 noise monitoring points at the factory boundary: the monitoring was divided into quarterly frequency according to the monitoring

plan and 58 monitoring data were obtained in the first half of the year.

(4) 12 atmospheric dust removal points: the monitoring was divided into quarterly frequency according to the monitoring plan and 62

monitoring data were obtained in the first half of the year.Administrative penalties due to environmental issues during the reporting period

Impact on the

Company

Violation production and

Name of company Penalty reasons Penalty results rectification

circumstances operation of listed

measures

companies

None None None None None None

Other environmental information that should be disclosed.No.Emission reduction actions in the reporting period and the effect

□ Applicable □ Not applicable

Through technology upgrading equipment upgrading energy conservation and emission reduction measures energy consumption per

unit of output value has decreased unit carbon emissions have been reduced year by year and enterprises have achieved fruitful results

in green and low-carbon development. Give full play to the synergistic advantages of smelting facilities process structure energy

structure and material technology put forward three low-carbon metallurgical technology paths and implement them in stages to meet

customer needs. High quality scrap steel is melted into "semi-steel" molten steel through electric furnace which is mixed into 50%

molten iron from blast furnace to electric furnace and then transported together for converter smelting and then rolling. Taking the

production of hot-dip galvanized products as an example the long production process reduces carbon by 34% to 26% to the terminal

product. Considering the whole process of green electricity deduction to the terminal product reduced by 38%. Published the

environmental product declaration of hot dip galvanized IF steel cold rolled IF steel hot rolled pickling low carbon stamping steel

and the third party EPD certification. Through the development of photovoltaic power generation projects the construction area of 31

0000 m2 in three cold rolling sewage treatment center 2250 hot rolling and office building storage and transportation center and

building 40000 parking lot with an average annual power generation of 15081000 kWh and an estimated investment of 59 million

yuan. The electric furnace project of Bensteel Plate Special Steel Division has introduced the new technology and equipment of

Japanese Steel Plantech (SPCO) which is the first set of Japanese SPCO ecological electric furnace (ECOARC electric furnace) in

China. It adopts continuous waste steel preheating and flat melting tank smelting technology which represents the international

advanced level of electric furnace technology. The whole process of 0.43t low carbon leading level and use the green electricity

resources of Bensteel to achieve nearly "zero carbon" production line.Other environmental protection-related information

None.II. Social responsibility situation

The company strictly implements the principle of precise policy implementation and providing all possible assistance adheres to the

working belief of "never letting a single employee fall behind" establishes a long-term mechanism to do practical and good things for

employees and effectively solves problems for employees in need. The company visited and comforted 12 employees in need and

distributed 19000 yuan in consolation money. The company also completed the update and entry of the electronic files of the National

Trade Union Assistance Management Platform and the electronic files are consistent with the paper files and the data is accurate

realizing the institutionalization standardization and networking of assistance work for employees in need.The company actively selects outstanding cadres to participate in rural revitalization work and currently there are 2 people serving as

first secretaries in the village. The village cadres focus on serving and guaranteeing the three-year action plan for new breakthroughs

in comprehensive revitalization based on the actual situation of the villages they are stationed in do a good job in one-on-one assistance

and condolences visits promote the implementation of assistance industry projects actively promote e-commerce training projects

promote the high-quality development of digital e-commerce increase the publicity of assistance industries and complete the poverty

alleviation and prevention of poverty recurrence work in the first half of 2024.

29Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

The company continues to provide growth points for the rural collective economy by directly purchasing agricultural and sideline

products for employee welfare and dispatching them to rural areas effectively increasing per capita income. It has been rated as an

advanced unit for targeted poverty alleviation work in Liaoning Province for many years in a row.

30Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

VI. Important Events

I. The Fulfilled Commitments During the Reporting Period and Under-Fulfillment

Commitments by the End of the Period Made by Actual Controller Acquirer Director

Supervisor Senior Management Personnel and other Related Parties.√ Applicable □ Not applicable

Commitment Type of Commitment Commitment

Commitments Contents Performance

party commitment time period

n order to maintain the

independence of

Bengang Plates Ansteel

Group promises as

follows: 1. Ansteel

Group guarantees to

keep separate from

Bengang Plates in terms

of assets personnel

finance institutions and

business and strictly

abide by the relevant

regulations of the China

Securities Regulatory

Commission on the

independence of listed

companies and will not

use its controlling

position to interfere with

the standardized

operation of Bengang

Plates interfere with the

Anshan Iron

business decisions of

and Steel Other Under normal

Bengang Plates or Aug 20 2021 Long term

Commitments made in Group Co. commitment fulfillment damage the legitimate

acquisition reports or equity Ltd. rights and interests of

change reports Bengang Plates and

other shareholders.Ansteel Group and its

controlled subsidiaries

guarantee not to illegally

occupy the funds of

Bengang Plates and its

controlled subsidiaries in

any way. 2. The above

commitments will

remain valid during the

period when Ansteel

Group has control over

Bengang Plates. If

Ansteel Group fails to

fulfill the above

commitments and causes

losses to Bengang Plates

Ansteel Group will bear

the corresponding

compensation liability.Anshan Iron To avoid horizontal

Other Under normal

and Steel competition Ansteel Aug 20 2021 Long term

commitment fulfillment

Group Co. Group undertakes as

31Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Ltd. follows: (1) With regard

to the overlap of some

businesses between

Ansteel Group and

Bengang Plates after the

completion of this

acquisition in

accordance with the

requirements of current

laws regulations and

relevant policies Ansteel

Group will within 5

years from the date of

this letter of

commitment and strive

to achieve the same

within a shorter period of

time in accordance with

the requirements of

relevant securities

regulatory authorities

and on the premise of

complying with the laws

regulations and relevant

regulatory rules

applicable at that time

and in line with the

principle of benefiting

the development of

Bengang Plates and

safeguarding the

interests of shareholders

especially the interests of

small and medium-sized

shareholders steadily

promote the integration

of related businesses to

resolve horizontal

competition by

comprehensively using a

variety of methods such

as asset restructuring

business adjustments

and entrusted

management. The above

solutions include but are

not limited to: 1) Asset

restructuring: adopt

different methods

permitted by relevant

laws and regulations

such as cash

consideration or

issuance of shares to

purchase assets asset

replacement asset

transfer or other feasible

restructuring methods

gradually sort out and

reorganize the assets of

Ansteel Group and

Bengang Plate with

overlapping businesses

and eliminate the overlap

of some businesses; 2)

Business adjustment:

sort out the business

32Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

boundaries and make

every effort to achieve

differentiated operations

such as achieving

business differentiation

through asset

transactions business

division and other

different methods

including but not limited

to differentiation in

business composition

product grade

application field and

customer group; 3)

Entrusted management:

by signing an

entrustment agreement

one party fully entrusts

the decision-making

power and management

power involved in the

operation of some

relevant assets with

overlapping businesses

to the other party for

unified management; 4)

Other feasible solutions

within the scope

permitted by laws

regulations and relevant

policies. The

implementation of the

above solutions is

subject to the necessary

review procedures for

listed companies the

approval procedures of

securities regulatory

authorities and relevant

competent authorities in

accordance with relevant

laws and regulations. (2)

Ansteel Group has not

yet formulated a specific

implementation plan and

time schedule for

resolving the issue of

overlap between some of

the businesses of Ansteel

Group and Bengang

Plates. Ansteel Group

will promptly fulfill its

information disclosure

obligations in

accordance with the

requirements of relevant

laws and regulations

after formulating a

specific and feasible

plan; (3) In addition to

the above circumstances

when Ansteel Group or

other subsidiaries obtain

business opportunities

that may compete with

the business of Bengang

33Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Plates Ansteel Group

will make every effort to

give Bengang Plates

priority development

rights and priority

acquisition rights for

such opportunities

ensure that the price of

the relevant transaction

is fair and reasonable

and will use the business

practices followed in

normal commercial

transactions with

independent third parties

as the basis for pricing;

(4) Ansteel Group

guarantees to strictly

abide by laws

regulations and the

provisions of the Articles

of Association of

Bengang Plates Co. Ltd.and its relevant

management systems

and will not use its

position as an indirect

controlling shareholder

of Bengang Plates to

seek improper interests

thereby damaging the

rights and interests of

other shareholders of

Bengang Plates; (5) The

above commitments

made by Ansteel Group

are valid during the

period when Ansteel

Group controls Bengang

Plates. If the rights and

interests of Bengang

Plates are damaged due

to the violation of the

above commitments

Ansteel Group is willing

to bear the

corresponding liability

for damages.In order to standardize

and reduce the related-

party transactions

between Ansteel Group

and listed companies

Ansteel Group has made

the following

Anshan Iron commitments: 1. Ansteel

and Steel Other Group will ensure that Under normal

Aug 20 2021 Long term

Group Co. commitment Bensteel Plates has fulfillment

Ltd. independent business

and complete assets and

has independent and

complete production

supply sales and other

supporting systems. 2.Ansteel Group and other

enterprises controlled by

34Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Ansteel Group will not

use their control over

Bensteel Plates to seek

priority in transactions

with Bensteel Plates and

its subsidiaries. 3.Ansteel Group and other

enterprises controlled by

Ansteel Group will avoid

and reduce unnecessary

transactions with

Bensteel Plates and its

subsidiaries. If there are

truly necessary and

unavoidable

transactions Ansteel

Group and other

enterprises controlled by

Ansteel Group will sign

agreements with

Bensteel Plates and its

subsidiaries in

accordance with the

principles of fairness

equity and equal

compensation and

perform legal

procedures. In

accordance with the

requirements of relevant

laws regulations and

normative documents

and the provisions of the

Articles of Association

of Bensteel Plates Co.Ltd. they will perform

information disclosure

obligations and relevant

internal decision-making

and approval procedures

in accordance with the

law and ensure that they

will not trade with

Bensteel Plates and its

subsidiaries under

conditions that are

obviously unfair

compared to market

prices and will not use

such transactions to

engage in any behavior

that damages the

legitimate rights and

interests of Bensteel

Plates and other

shareholders of Bensteel

Plates. 4. If the above

commitments are

violated and the

legitimate rights and

interests of Bengang

Plate are damaged

Ansteel Group will

compensate Bengang

Plate for the losses

caused thereby in

35Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

accordance with the law.According to the

relevant regulations of

the China Securities

Regulatory Commission

all directors and senior

management of the

Company have made the

following commitments

to the Company’s

fulfillment of the diluted

immediate return

measures: 1. I promise to

perform my duties

faithfully and diligently

and safeguard the

legitimate rights and

interests of the Company

and all shareholders . 2. I

promise not to deliver

benefits to other units or

individuals without

compensation or under

unfair conditions nor to

use other means to

damage the Company's

interests. 3. I promise to

restrict the position-

related consumption

behavior of company

directors and senior

management personnel.Company

Commitment made during 4. I promise not to use

directors Other Under normal

initial public offering or

senior commitment the Company’s assets to

May 22 2019 Long term

fulfillment

refinancing do investment and

management

consumption activities

that are not related to the

performance of my

duties. 5. Within the

scope of my

responsibilities and

authority I promise to

make every effort to

promote the company's

board of directors or the

remuneration system

established by the

remuneration and

appraisal committee to

be linked to the

implementation of the

company's

compensation measures

and vote in favor of the

relevant proposals

reviewed by the

company's board of

directors and general

meeting (If I have voting

rights). 6. If the company

intends to implement

equity incentives I

promise to within my

own responsibilities and

jurisdiction make every

effort to promote the

36Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Company’s proposed

equity incentive exercise

conditions to be linked to

the Company’s

implementation of the

return measures and to

review the Company’s

board of directors and

shareholders’ general

meetings and vote in

favor of the relevant

proposals reviewed by

the company's board of

directors and general

meeting (If I have voting

rights). 7. If the future

issuance of this

commitment and the

implementation of the

Company’s public

issuance of convertible

corporate bonds are

completed if the China

Securities Regulatory

Commission makes

other new regulatory

provisions on the

measures for filling

returns and their

commitments and the

above commitments

cannot meet the

requirements of the

China Securities

Regulatory Commission

When other regulations

are stipulated a

commitment will be

issued in accordance

with the latest

regulations of the China

Securities Regulatory

Commission. The

company's controlling

shareholder Benxi Iron

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

interfere with the

company's operation and

management activities

beyond its authority and

not to infringe on the

Company's interests.The sales companies of

Bengang International

Trade Co. Ltd. and

Bengang Steel plates in

Benxi Steel &

the same region

Iron (Group)

guarantee independent

Co. Ltd. and Other Under normal

personnel independent July 242019 Long term

Bengang Commitment fulfillment

business independent

Group Co.finance and independent

Ltd.assets and are

guaranteed not to be in

the same registration

place or in the same

37Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

office; The filing of

foreign economic and

trade operators taking

into account the need to

gradually improve the

qualification

certification of raw

material suppliers

customs import and

export qualification

certification etc. In the

short term the actual

conditions and

capabilities for

independent import and

export business are still

lacking. In order to

ensure the normal

business development of

Benxi Steel Plate the

Group agrees that within

the period of not more

than 5 years from the

date of issuance of this

commitment the main

import and export

business of Benxi Steel

Plate will still be

represented by Bengang

International Trade until

Bengang Steel Plates can

be independently

developed Import and

export business and

during this period

Bengang International

Trade will provide the

necessary support for the

establishment and

improvement of

Bengang's import and

export business. In

addition the sales

company under Bengang

International Trade is

only responsible for

selling the products of

Beiying Iron and Steel

Group and never sells

third-party steel

products. 3. The three

sales companies under

the Group Shanghai

Bengang Iron and Steel

Sales Co. Ltd. Shanghai

Bengang Iron and Steel

Materials Co. Ltd. and

Guangzhou Free Trade

Zone Bengang Sales Co.Ltd. are currently no

longer actually engaged

in any business

activities as follows: (1 )

Shanghai Bengang Iron

& Steel Sales Co. Ltd.filed for bankruptcy in

2014 and the Shanghai

38Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Changning District

People's Court issued an

announcement to

appoint Guohao Lawyer

(Shanghai) Office as the

bankruptcy

administrator. After

communication with the

bankruptcy

administrator it is

expected that the

bankruptcy and

liquidation of Shanghai

Bengang Iron and Steel

Sales Co. Ltd. will be

completed by the end of

2020. Upon completion

of the aforementioned

bankruptcy liquidation

procedures the relevant

procedures for

cancellation of Shanghai

Bengang Iron and Steel

Sales Co. Ltd. will be

handled immediately. (2)

Shanghai Bengang Iron

& Steel Materials Co.Ltd. is a holding

subsidiary of Shanghai

Bengang Iron & Steel

Sales Co. Ltd. and was

deregistered in

November 2020. (3)

Guangzhou Free Trade

Zone Bengang Sales Co.Ltd. was deregistered in

July 2022.The Group's horizontal

competition with Benxi

Steel Plates and the

measures and

commitments to avoid

inter-industry

competition 1. During

the period when the

Group is the controlling

shareholder of Bengang

Steel Plates in addition

to the matters listed in

Article 1 of this

Benxi Steel & Commitment Letter the

Other Under normal

Iron (Group) Group and other July 242019 Long term

Commitment fulfillment

Co. Ltd. enterprises controlled by

the Group other than

Bengang Steel Plates no

longer produce or

develop any products

that compete or may

compete with the

products produced by

Bengang Steel Plates and

its subsidiaries at home

and abroad and do not

directly or indirectly

operate any business that

competes with Bengang

39Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Steel Plates and its

subsidiaries. Businesses

that may constitute

competition nor are they

involved in investing in

any other enterprise that

competes with or may

compete with products

or businesses produced

by Bengang Steel Plates

and its subsidiaries. 2. If

Bengang Steel Plates and

its subsidiaries further

expand their business

scope the Group and

other enterprises

controlled by the Group

will not compete with the

expanded business of

Bengang Steel Plates and

its subsidiaries; they may

compete with Bengang

Steel Plates and its

subsidiaries If the

company's expanded

business produces

competition it will

withdraw from the

competition with

Bengang Steel Plates as

follows: (1) Stop

business that may or may

compete with Bengang

Steel Plates and its

subsidiaries; (2) Will

compete The business is

incorporated into

Bengang Steel Plates and

its subsidiaries in a legal

and compliant manner;

(3) Competitive business

is transferred to

unrelated third parties. 3.If the Group has any

business opportunities to

engage in or participate

in the competition with

Bengang Steel Plates’

operations the Group

shall immediately notify

Bengang Steel Plates of

the above commercial

opportunities. Within a

reasonable period

specified in the notice

Bengang Steel Plates If

an affirmative answer is

made to take advantage

of the business

opportunity the Group

will endeavor to give the

business opportunity to

Bengang Steel Plates on

terms not less than that

provided to any

independent third party.

4. If the above

40Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

commitments are

violated the Group is

willing to bear all the

responsibilities arising

therefrom and fully

compensate or

compensate for all direct

or indirect losses caused

to Bengang Steel Plates.

5. This letter of

commitment continues

to be effective during the

period of the Group as

the controlling

shareholder of Bengang

Steel Plates and cannot

be changed or withdrawn

In order to regulate and

reduce the Company’s

transactions with

controlling shareholders

and other related parties

and to protect the

interests of the Company

and small and medium

shareholders Benxi Iron

and Steel (Group) Co.Ltd. and Bengang Group

Co. Ltd. have issued the

following commitments:

"Benxi Iron and Steel

(Group) Co. Ltd. and

Bengang Group Co.Ltd. (hereinafter

collectively referred to

as the "Group") as a

direct controlling

shareholder and an

indirect controlling

Benxi Steel &

shareholder of Bengang

Iron (Group)

Steel Plates Co. Ltd.Co. Ltd. and Other Under normal

Bengang Commitment (hereinafter referred to

July 242019 Long term

fulfillment

as "Bengang Steel

Group Co.Plates") in order to

Ltd.protect the interests of

Bengang Steel Plates and

other shareholders of

Bengang Steel Plates

regulate The Group's

related transaction with

Bengang Steel Plates

hereby promises: 1. The

Group will fully respect

the independent legal

person status of Bengang

Steel Plates ensure the

independent operation

and independent

decision-making of

Bengang Steel Plates

ensure the independence

of Bengang Steel Plates’

business asset integrity

and personnel

Independence and

financial independence

41Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

to avoid and reduce

unnecessary related

transactions; the Group

will strictly control

related transactions with

Bengang Steel Plates and

its subsidiaries. 2. The

Group and other

controlled companies

promise not to use loans

or occupy or

misappropriate the funds

of Bengang Steel Plates

and its subsidiaries to

repay debts substitute

funds or otherwise nor

We ask Bengang Steel

Plates and its

subsidiaries to provide

illegal guarantees for the

Group and other

companies under its

control. 3. The Group

and other controlled

companies and Bengang

Steel Plates will

minimize related

transactions. It is indeed

necessary and

unavoidable to carry out

in the related party

transactions strictly

implement the decision-

making authority

decision-making

procedures avoidance

system and other

contents stipulated in

Bengang's "Articles of

Association" and related

party transaction

decision-making system

give full play to the role

of the board of

supervisors and

independent directors

and earnestly fulfill the

obligation of

information disclosure

To ensure that

transactions are

conducted in accordance

with the open fair and

fair principles of market

transactions and normal

commercial terms the

Group and other

companies under control

will not require or accept

Bengang Steel Sheets to

give preferential

treatment to third parties

in any fair market

transaction Conditions to

protect other

shareholders of Benxi

Steel Plates and the

42Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

interests of Benxi Steel

Plates from damage. 4.The Group guarantees

that the above

commitments are

continuously effective

and irrevocable as long

as Bengang Steel Plates

is listed on the domestic

stock exchange and the

Group acts as its direct

and indirect controlling

shareholder. If any

violation of the above

commitments occurs the

Group therefore bear all

the losses caused to

Bengang Steel Plates.Whether Commitment

Yes

fulfilled on time or not

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

related parties

□ Applicable √ Not applicable

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

shareholders and other related parties.III. Violation of external guarantees

□ Applicable √ Not applicable

During the reporting period the company had no violations of external guarantees.IV. Appointment and Dismissal of Certified Accountant’s Firm

Is the semi-annual financial report audited

□ Yes √ No

The semi-annual report has not been audited.V. Illustrations of the Board of Directors and Supervisory Committee on the Modified Audit

Report Issued by the CPAs

□ Applicable √ Not applicable

VI. Illustrations of the Board of Directors on the Modified Audit Report Issued by the CPAs

for Previous Reporting Period

□ Applicable √ Not applicable

43Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Ⅶ. Bankrupt and Reforming Events

□ Applicable √ Not applicable

There was no bankrupt and reforming event during the reporting period.VIII. Lawsuits and Arbitrations

Significant lawsuits and arbitrations

□ Applicable √ Not applicable

There is no Significant lawsuits and arbitrations during the reporting period.Other Lawsuits and Arbitrations

√ Applicable □ Not applicable

Results and

Basic Amount Whether a Execution of

Progress in effects of the

information involved (ten provisional the litigation Disclosure Disclosure

litigation litigation

of litigation thousand liability is (arbitration) date index

(arbitration) (arbitration)

(arbitration) yuan) formed judgment

trial

Summary of

matters that

the company

does not

In

meet the To be

6084.17 No In the trial accordance

disclosure concluded

with the law

standards of

material

litigation

(arbitration)

IX. Punishment and Rectification

√ Applicable □ Not applicable

Type of

Conclusion (if Disclosure

Name Type Cause investigation Disclosure date

any) index

and punishment

Before 2019

the company

failed to

promptly settle

the port and Announcement

transit Issue a warning on receipt of

consumption of The CSRC letter and the Warning

Bengang plate

raw materials adopts record it in the Letter of

Gao Lie Shen

Other procured on administrative integrity file of May 182024 Liaoning

Qiang Zhao

behalf of supervision the securities Securities

Zhonghua

others resulting measures and futures Regulatory

in inaccurate market Bureau (No.:

disclosure of 2024-022)

the amounts of

relevant report

items in the

current period;

44Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

at the same

time there was

also a lack of

independence

in the

procurement

business and

irregular

management of

accounting

files.X. Credit Status of the Company and its Controlling Shareholders and Actual Controllers

□ Applicable √ Not applicable

XI. Major Related Party Transactions

1. Related party transactions relevant to daily operations

√ Applicable □ Not applicable

Pricin Amou The

Propo Appro Whet Settle

g nt of marke

Relate rtion ved her ment

princi Relate Affili t price

d of the transa the metho

ples d ated of

Relate Relati Trans party amou ction appro d of Disclo Disclo

of party Trans simila

d onshi action transa nt of amou ved relate sure sure

relate transa action r

party p s type ction simila nt (ten quota d date index

d ction (ten transa

conte r thousa is party

party price thousa ctions

nt transa nd excee transa

transa nd availa

ctions yuan) ded ctions

ctions Yuan) ble

Benxi

Beiyi Purch

Procu

ng Also asing

remen Relate Accor

Iron belon goods

t of d ding Dec

and g to / protoc 6036 54.70 1493 2023-

major Agree No to the Yes 02

Steel Benga provid ol 11.18 % 000 068

raw ment agree 2023

(Grou ng e

materi Price ment

p) Group servic

als

Co. es

LTD

Benxi

Purch

Iron Procu

asing

and The remen Relate Accor

goods

Steel same t of d ding Dec

/ protoc 3761 34.09 7500 2023-

(Grou parent major Agree No to the Yes 02

provid ol 54.34 % 00 068

p) comp raw ment agree 2023

e

Minin any materi Price ment

servic

g Co. als

es

LTD

Benxi Purch Procu

The Relate Accor Dec

Iron asing remen protoc 2683 3000 2023-

same d 2.43% No ding Yes 02

and goods t of ol 7.98 0 068

parent Agree to the 2023

Steel / major

45Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(Grou comp provid raw ment agree

p) any e materi Price ment

Indust servic als

rial es

Devel

opme

nt

Co.LTD

Benxi Purch

Procu

Iron asing

remen Relate Accor

and goods

parent t of d ding Dec

Steel / protoc 5335. 3000 2023-

comp major Agree 0.48% No to the Yes 02

(Grou provid ol 12 0 068

any raw ment agree 2023

p) e

materi Price ment

Co. servic

als

LTD es

Anga

ng

Also

Group Purch

belon Procu

Intern asing

g to remen Relate Accor

ationa goods

Anga t of d ding Dec

l / protoc 1073 3000 2023-

ng major Agree 0.97% No to the Yes 02

Econo provid ol 0.56 0 068

Iron raw ment agree 2023

mic e

and materi Price ment

and servic

Steel als

Trade es

Group

Co.LTD

Also

Purch

Ansha belon Procu

asing

n Iron g to remen Relate Accor

goods

and Anga t of d ding Dec

/ protoc 3047 5060 2023-

Steel ng major Agree 2.76% No to the Yes 02

provid ol 1.11 0 068

Group Iron raw ment agree 2023

e

Co. and materi Price ment

servic

Ltd Steel als

es

Group

Anste

el

Also

Group Purch

belon Procu

Zhong asing

g to remen Relate Accor

yuan goods

Anga t of d ding Dec

Indust / protoc 4834 1600 2023-

ng major Agree 4.38% No to the Yes 02

rial provid ol 2.36 00 068

Iron raw ment agree 2023

Devel e

and materi Price ment

opme servic

Steel als

nt es

Group

Co.LTD

Other Also Procu

Purch

subsid belon remen Relate Accor

asing

iaries g to t of d ding Dec

goods protoc 2060. 2023-

of Anga major Agree 0.19% 5000 No to the Yes 02

/ ol 84 068

Anga ng raw ment agree 2023

provid

ng Iron materi Price ment

e

Group and als

46Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Steel servic

Group es

Benxi

Beiyi Purch

Procu

ng Also asing

remen Relate Accor

Iron belon goods

t of d ding Dec

and g to / protoc 2023-

auxili Agree 0.00% 2000 No to the Yes 02

Steel benga provid ol 068

ary ment agree 2023

(Grou ng e

materi Price ment

p) Group servic

als

Co. es

LTD

Benxi

Iron

and

Purch

Steel Procu

asing

(Grou The remen Relate Accor

goods

p) same t of d ding Dec

/ protoc 6254. 22.35 1000 2023-

Machi parent auxili Agree No to the Yes 02

provid ol 91 % 0 068

nery comp ary ment agree 2023

e

Manu any materi Price ment

servic

facturi als

es

ng

Co.LTD

Benxi

Iron

and Purch

Procu

Steel asing

The remen Relate Accor

(Grou goods

same t of d ding Dec

p) / protoc 1540. 1600 2023-

parent auxili Agree 5.50% No to the Yes 02

Equip provid ol 73 0 068

comp ary ment agree 2023

ment e

any materi Price ment

Engin servic

als

eering es

Co.LTD

Benxi

Iron Purch

Procu

and asing

The remen Relate Accor

Steel goods

same t of d ding Dec

(Grou / protoc 1200 2023-

parent auxili Agree 81.86 0.29% No to the Yes 02

p) provid ol 0 068

comp ary ment agree 2023

Const e

any materi Price ment

ructio servic

als

n Co. es

Ltd

Benxi

Iron Purch

Procu

and asing

The remen Relate Accor

Steel goods

same t of d ding Dec

(Grou / protoc 701.6 2023-

parent auxili Agree 2.51% 8000 No to the Yes 02

p) provid ol 9 068

comp ary ment agree 2023

Infor e

any materi Price ment

matio servic

als

n es

Auto

47Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

matio

n Co.LTD

Benxi

Iron

and

Purch

Steel Procu

asing

(Grou The remen Relate Accor

goods

p) same t of d ding Dec

/ protoc 2023-

Indust parent auxili Agree 1.7 0.01% 4000 No to the Yes 02

provid ol 068

rial comp ary ment agree 2023

e

Devel any materi Price ment

servic

opme als

es

nt

Co.LTD

Benxi Purch

Procu

Iron asing

remen Relate Accor

and goods

parent t of d ding Dec

Steel / protoc 1065 38.08 2600 2023-

comp auxili Agree No to the Yes 02

(Grou provid ol 8.11 % 0 068

any ary ment agree 2023

p) e

materi Price ment

Co. servic

als

LTD es

Anste

el

Also

Group Purch

belon Procu

Zhong asing

g to remen Relate Accor

yuan goods

Anga t of d ding Dec

Indust / protoc 517.1 2023-

ng auxili Agree 1.85% 1500 No to the Yes 02

rial provid ol 1 068

Iron ary ment agree 2023

Devel e

and materi Price ment

opme servic

Steel als

nt es

Group

Co.LTD

Also

Purch

Ansha belon Procu

asing

n Iron g to remen Relate Accor

goods

and Anga t of d ding Dec

/ protoc 6454. 23.06 1150 2023-

Steel ng auxili Agree No to the Yes 02

provid ol 44 % 0 068

Group Iron ary ment agree 2023

e

Co. and materi Price ment

servic

Ltd Steel als

es

Group

Also

Purch

Other belon Procu

asing

subsid g to remen Relate Accor

goods

iaries Anga t of d ding Dec

/ protoc 1781. 2023-

of ng auxili Agree 6.36% 4000 No to the Yes 02

provid ol 03 068

Anga Iron ary ment agree 2023

e

ng and materi Price ment

servic

Group Steel als

es

Group

Benxi Also Purch Purch Relate Accor Dec

protoc 3166 99.96 6000 2023-

Beiyi belon asing ase d No ding Yes 02

ol 1.95 % 0 068

ng g to goods energ Agree to the 2023

48Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Iron benga / y ment agree

and ng provid power Price ment

Steel Group e

(Grou servic

p) es

Co.LTD

Also

Purch

Other belon

asing

subsid g to Purch Relate Accor

goods

iaries Anga ase d ding Dec

/ protoc 2023-

of ng energ Agree 11.8 0.04% Yes to the Yes 02

provid ol 068

Anga Iron y ment agree 2023

e

ng and power Price ment

servic

Group Steel

es

Group

Benxi

Iron Purch

and asing Accep

The Relate Accor

Steel goods t

same d ding Dec

(Grou / suppo protoc 1035 4000 2023-

parent Agree 8.03% No to the Yes 02

p) provid rtive ol 4.51 0 068

comp ment agree 2023

Const e servic

any Price ment

ructio servic es

n Co. es

Ltd

Benxi

Beiyi Purch

ng Also asing Accep

Relate Accor

Iron belon goods t

d ding Dec

and g to / suppo protoc 5309. 1200 2023-

Agree 4.12% No to the Yes 02

Steel Benga provid rtive ol 62 0 068

ment agree 2023

(Grou ng e servic

Price ment

p) Group servic es

Co. es

LTD

Benxi

Iron

and Purch

Steel asing Accep

The Relate Accor

(Grou goods t

same d ding Dec

p) / suppo protoc 3110 24.11 3500 2023-

parent Agree No to the Yes 02

Equip provid rtive ol 2.4 % 0 068

comp ment agree 2023

ment e servic

any Price ment

Engin servic es

eering es

Co.LTD

Benxi

Purch

Iron

asing Accep

and The Relate Accor

goods t

Steel same d ding Dec

/ suppo protoc 2023-

(Grou parent Agree 0.00% 3000 No to the Yes 02

provid rtive ol 068

p) comp ment agree 2023

e servic

Minin any Price ment

servic es

g Co.es

LTD

49Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Benst

eel

Group Purch

Intern Also asing Accep

Relate Accor

ationa belon goods t

d ding Dec

l g to / suppo protoc 4072. 1000 2023-

Agree 3.16% No to the Yes 02

Econo Benga provid rtive ol 96 0 068

ment agree 2023

mic ng e servic

Price ment

and Group servic es

Trade es

Co.LTD

Benxi

Iron

and

Purch

Steel

asing Accep

(Grou The Relate Accor

goods t

p) same d ding Dec

/ suppo protoc 1047 2000 2023-

Infor parent Agree 8.12% No to the Yes 02

provid rtive ol 8.53 0 068

matio comp ment agree 2023

e servic

n any Price ment

servic es

Auto

es

matio

n Co.LTD

Purch

North

Also asing Accep

Heng Relate Accor

belon goods t

da d ding Dec

g to / suppo protoc 1120. 1000 2023-

Logist Agree 0.87% No to the Yes 02

Benga provid rtive ol 09 0 068

ics ment agree 2023

ng e servic

Co. Price ment

Group servic es

Ltd

es

Benxi

Iron

and

Purch

Steel

asing Accep

(Grou The Relate Accor

goods t

p) same d ding Dec

/ suppo protoc 1070. 2023-

Machi parent Agree 0.83% 7000 No to the Yes 02

provid rtive ol 25 068

nery comp ment agree 2023

e servic

Manu any Price ment

servic es

facturi

es

ng

Co.LTD

Benxi

Iron

Purch

and

asing Accep

Steel The Relate Accor

goods t

(Grou same d ding Dec

/ suppo protoc 380.2 2023-

p) parent Agree 0.29% 800 No to the Yes 02

provid rtive ol 8 068

Indust comp ment agree 2023

e servic

rial any Price ment

servic es

Devel

es

opme

nt

50Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Co.LTD

Benxi Purch

Iron asing Accep

Relate Accor

and goods t

parent d ding Dec

Steel / suppo protoc 1401 10.86 3440 2023-

comp Agree No to the Yes 02

(Grou provid rtive ol 1.96 % 0 068

any ment agree 2023

p) e servic

Price ment

Co. servic es

LTD es

Contr Purch

olling asing Accep

Ben Relate Accor

shareh goods t

Steel d ding Dec

older / suppo protoc 1024 3620 2023-

Group Agree 7.95% No to the Yes 02

of the provid rtive ol 8.94 0 068

Co. ment agree 2023

parent e servic

Ltd Price ment

comp servic es

any es

Anga

ng

Also

Group Purch

belon

Engin asing Accep

g to Relate Accor

eering goods t

Anga d ding Dec

Techn / suppo protoc 5363. 1200 2023-

ng Agree 4.16% No to the Yes 02

ology provid rtive ol 81 0 068

Iron ment agree 2023

Devel e servic

and Price ment

opme servic es

Steel

nt es

Group

Co.LTD

Also

Purch

Ansha belon

asing Accep

n Iron g to Relate Accor

goods t

and Anga d ding Dec

/ suppo protoc 3474 26.94 2600 2023-

Steel ng Agree No to the Yes 02

provid rtive ol 6.46 % 0 068

Group Iron ment agree 2023

e servic

Co. and Price ment

servic es

Ltd Steel

es

Group

Also

Purch

Other belon

asing Accep

subsid g to Relate Accor

goods t

iaries Anga d ding Dec

/ suppo protoc 734.2 2023-

of ng Agree 0.57% 3000 No to the Yes 02

provid rtive ol 5 068

Anga Iron ment agree 2023

e servic

ng and Price ment

servic es

Group Steel

es

Group

Sellin

North

Also g

Heng Relate Accor

belon goods

da Sellin d ding Dec

g to / protoc 1722 44.13 4200 2023-

Logist g Agree No to the Yes 02

Benga provid ol 05.26 % 00 068

ics goods ment agree 2023

ng ing

Co. Price ment

Group servic

Ltd

es

51Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Benxi

Beiyi Sellin

ng Also g

Relate Accor

Iron belon goods

Sellin d ding Dec

and g to / protoc 2226 5000 2023-

g Agree 5.70% No to the Yes 02

Steel Benga provid ol 4.05 0 068

goods ment agree 2023

(Grou ng ing

Price ment

p) Group servic

Co. es

LTD

Benxi

Sellin

Iron

g

and The Relate Accor

goods

Steel same Sellin d ding Dec

/ protoc 1433 9000 2023-

(Grou parent g Agree 3.67% No to the Yes 02

provid ol 4.91 0 068

p) comp goods ment agree 2023

ing

Minin any Price ment

servic

g Co.es

LTD

Benxi

Iron Sellin

and g

The Relate Accor

Steel goods

same Sellin d ding Dec

(Grou / protoc 144.3 2023-

parent g Agree 0.04% 500 No to the Yes 02

p) provid ol 1 068

comp goods ment agree 2023

Const ing

any Price ment

ructio servic

n Co. es

Ltd

Benxi

Iron

and

Sellin

Steel

g

(Grou The Relate Accor

goods

p) same Sellin d ding Dec

/ protoc 943.6 2023-

Machi parent g Agree 0.24% 1300 No to the Yes 02

provid ol 6 068

nery comp goods ment agree 2023

ing

Manu any Price ment

servic

facturi

es

ng

Co.LTD

Benxi

Iron

and

Sellin

Steel

g

(Grou The Relate Accor

goods

p) same Sellin d ding Dec

/ protoc 8121. 1400 2023-

Indust parent g Agree 2.08% No to the Yes 02

provid ol 77 0 068

rial comp goods ment agree 2023

ing

Devel any Price ment

servic

opme

es

nt

Co.LTD

52Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Benxi Sellin

Iron g

Relate Accor

and goods

parent Sellin d ding Dec

Steel / protoc 5760. 2420 2023-

comp g Agree 1.48% No to the Yes 02

(Grou provid ol 19 0 068

any goods ment agree 2023

p) ing

Price ment

Co. servic

LTD es

Also

Sellin

Ansha belon

g

n Iron g to Relate Accor

goods

and Anga Sellin d ding Dec

/ protoc 1401 35.92 3319 2023-

Steel ng g Agree No to the Yes 02

provid ol 68.59 % 00 068

Group Iron goods ment agree 2023

ing

Co. and Price ment

servic

Ltd Steel

es

Group

Anste

el

Also

Group Sellin

belon

Zhong g

g to Relate Accor

yuan goods

Anga Sellin d ding Dec

Indust / protoc 3735. 1450 2023-

ng g Agree 0.96% No to the Yes 02

rial provid ol 37 0 068

Iron goods ment agree 2023

Devel ing

and Price ment

opme servic

Steel

nt es

Group

Co.LTD

Anga

ng

Also

Group Sellin

belon

Intern g

g to Relate Accor

ationa goods

Anga Sellin d ding Dec

l / protoc 1986 3000 2023-

ng g Agree 5.09% No to the Yes 02

Econo provid ol 2.22 0 068

Iron goods ment agree 2023

mic ing

and Price ment

and servic

Steel

Trade es

Group

Co.LTD

Also

Sellin

belon

Panzh g

g to Relate Accor

ihua goods

Anga Sellin d ding Dec

Steel / protoc 1219. 2023-

ng g Agree 0.31% 2600 No to the Yes 02

Group provid ol 37 068

Iron goods ment agree 2023

Co. ing

and Price ment

Ltd servic

Steel

es

Group

Other Also

Sellin

subsid belon Relate Accor

g

iaries g to Sellin d ding Dec

goods protoc 1500. 2023-

of Anga g Agree 0.38% 4000 No to the Yes 02

/ ol 5 068

Anga ng goods ment agree 2023

provid

ng Iron Price ment

ing

Group and

53Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Steel servic

Group es

Benxi

Sellin

Iron

g Provi

and The Relate Accor

goods de

Steel same d ding Dec

/ suppo protoc 410.8 73.37 2023-

(Grou parent Agree 3700 No to the Yes 02

provid rtive ol 3 % 068

p) comp ment agree 2023

ing servic

Minin any Price ment

servic es

g Co.es

LTD

Also

Sellin

Other belon

g Provi

subsid g to Relate Accor

goods de

iaries Anga d ding Dec

/ suppo protoc 149.1 26.63 2023-

of ng Agree 300 No to the Yes 02

provid rtive ol 3 % 068

Anga Iron ment agree 2023

ing servic

ng and Price ment

servic es

Group Steel

es

Group

1683

3940

Total -- -- 023.0 -- -- -- -- -- --

000

6

Details of any sales return of

No applicable

a large amount

Actual performance of the

estimated total amount of daily

related transactions to occur in the No applicable

current period during the reporting

period by category(if any)

Reason for any significant

difference between the

transaction price and the No applicable

Market price for reference (if

applicable)

2. Related transactions relevant to asset acquisition or sold

□ Applicable √ Not applicable

There was no related transaction relevant to asset acquisition or sold during the reporting period.

3. Related transactions relevant to joint investments

□ Applicable √ Not applicable

There was no related transaction relevant to joint investments during the reporting period.

4. Credits and liabilities with related parties

□ Applicable √ Not applicable

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

5. Deals with related financial companies and financial companies controlled by the company

√ Applicable □ Not applicable

54Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Deposit business

Current period

Maximum Total

Deposit Beginning Total deposit Ending

Relationshi daily deposit withdrawal

Related party interest rate balance (10 amount of amount of balance (10 p limit (ten

range thousand) the current thousand)

thousand) this period period (10

(10

thousand)

thousand)

Angang Steel Also belong

Group to Anshan

4500001.35%39137.765388504.115349987.2877654.58

Finance Co. Iron and

LTD Steel Group

Loan Business

Current period

Total

Total

repayme

loan

Beginning nt

（ amountEnding balance

Loan limit 10 Loan interest amountRelated party Relationship balance（10 of the （10thousand） rate range of thethousand） current current thousand）

period

period

(10

(10

thousan

thousan

d)

d)

Credit or other financial servicesAmount（10 Actual amount（10Related party Relationship Business typethousand） thousand）

Angang Steel Group Also belong to Anshan Other financial

32962.5713111.58

Finance Co. LTD Iron and Steel Group operations

6. Other significant related transactions

□ Applicable √ Not applicable

There was no other significant related transaction during the reporting period.

7. Material Contracts and Performance Thereof

□ Applicable □ Not applicable

The company has no other material related party transactions during the reporting period.XII. Major Contracts and Performance

1. Trusteeship contracting and leasing matters

(1) Trusteeship

□ Applicable √ Not applicable

There was no trusteeship during the reporting period.

55Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(2) Contracting

□ Applicable √ Not applicable

There was no contracting during the reporting period.

(3) Lease

√Applicable □ Not applicable

Description of lease

The Company as the lessor:

Leasing income

Type of leased Lease income recognized

Name of lessee recognized in the previous

assets in this period

period

Benxi Iron and Steel (Group) Plant and auxiliary

670802.00

Equipment Engineering Co. LTD equipment

The Company as the lessee:

Current period Previous period

Ren Variable Ren Variable

tal lease tal lease

fees payment Interest fees payment Interest Name Type of

Increa Increa

of leased for s not

expense for s not expense

sed sed

shor included Rent paid on lease Rent paid on lease lessor assets shor included

access access

t- in the liabilities t- in the liabilities

assets assets

ter measure assumed ter measure assumed

m ment of m ment of

leas lease leas lease

56Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

es liabilitie es liabilitie

and s and s

low low

--

valu valu

e e

asse asse

ts ts

Land

use right

Benxi 766906

Iron 8.17

and square

276387195000276278197500

Steel meters

72.0654.0009.2696.20

(Group) land use

Co. right

LTD 42920.0

0 square

meters

2300 hot

Benxi

rolling

Iron

mill

and

producti 804908 387034 804908 373693

Steel

on line 0.52 4.34 0.53 2.14

(Group)

related

Co.real

LTD

estate

Benxi

1780 hot

Beiying

rolling

Iron 717581 298072 755773 287797

mill

and 8.86 1.70 0.91 5.14

producti

Steel

on line

(Group)

57Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Co. related

LTD property

Land

Ben use right

Steel is

497271122495497271131537

Group 728282.

1.569.401.548.20

Co. 30

Ltd square

meters

Ansteel

Group

Energy

machine

Saving

ry 120634

Technol -

equipme 82.04

ogy

nt

Service

Co.LTD

For the company's profit and loss of the company to more than 10% of the total profit of the reporting period

□ Applicable □ Not applicable

During the reporting period of the company there is no leasing project that the profit and loss of the company reaches more than 10%

of the total profit of the company during the reporting period.

2. Major Guarantee

□ Applicable √ Not applicable

There was no guarantee during the reporting period.

3. Entrusted Finance

□ Applicable √ Not applicable

There was no entrusted finance during the reporting period.

4. Other Major Contracts

□ Applicable √ Not applicable

58Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

There was no other major contract during the reporting period.XIII. Other Major Events

√ Applicable □ Not applicable

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

replacement with Benxi Iron and Steel Company intending to acquire 100% equity of Benxi Iron and Steel (Group)

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

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

to the other in cash. At present the company is conducting further demonstration and communication and negotiation on

the transaction plan. After the relevant matters are determined the company will convene the board of directors again for

deliberation.XIV. Major Events of Subsidiaries

□ Applicable √ Not applicable

59Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

VII. Status of Share Capital Changes and Shareholders

I. Share Capital Changes

1. Share capital changes

Unit: Share

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

ation of

Percenta Issuing of Bonus Percenta

Quantity common Others Subtotal Quantity

ge new share shares ge

reserve

fund

I. Restricted Shares

2. State-own Legal-person

Shareholding

3. Other domestic

shareholdings

Including: Domestic legal

person holding

Domestic

person holding

II. Non-restricted Shares 4108219302 100.00% 1771 1771 4108221073 100.00%

1. Common shares in

370821930290.26%17711771370822107390.26%

RMB

2. Foreign shares in

4000000009.74%4000000009.74%

domestic market

2. Foreign shares in

oversea market

4.Others

III. Total shares 4108219302 100.00% 1771 1771 4108221073 100.00%

Reason of share capital changes

√Applicable □Not applicable

During the reporting period the company's publicly issued convertible corporate bonds were converted

into 70 shares and the company's total share capital increased by 1771 shares.Approval of share capital changes

□ Applicable √ Not applicable

60Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Status of registration process of transferred shares

□ Applicable √ Not applicable

Progress of Share Repurchase

□ Applicable √ Not applicable

Implementation Progress of Reducing Holdings of Repurchase Shares by Centralized Bidding

□ Applicable √ Not applicable

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

per share and net asset per share attributed to common shareholders

□ Applicable √ Not applicable

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

□ Applicable √ Not applicable

2. Changes of Restricted Shares

□Applicable √Not applicable

II. Securities Issuance and Listing

√Applicable □Not applicable

III. Total Number of shareholders and shareholding

Unit: Shares

The total number of

Total number of

preferred shareholders

common shareholders 0

47365 voting rights restored at

at the end of the

the end of the reporting

reporting period

period (See Notes 8)

Shareholding of shareholders holding more than 5% or top 10 shareholders

Number of Changes in Number of pledged or

Name of the Nature of Holding Restricted Un-restricted

shares held at reporting frozen shares

shareholder shareholder Percentage shares held shares held

period-end period Status Number

Benxi Steel & Iron State-owned Pledged 110000000

58.65%2409628094002409628094

(Group) Co. Ltd. legal person Frozen 102100000

61Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Bengang Group Not

State-owned

Co. Ltd. 17.95% 737371532 0 0 737371532 applicab 0

legal person

le

Guan Hui Not

Domestic

0.71% 29081200 351200 0 29081200 applicab 0

natural person

le

Zhang Wenyou Not

Domestic

0.47% 19168167 18200 0 19168167 applicab 0

natural person

le

Gao Tao Not

Domestic

0.38% 15440000 -8310000 0 15440000 applicab 0

natural person

le

Lyu Ruijun Not

Domestic

0.29% 12000005 12000005 0 12000005 applicab 0

natural person

le

Basic Pension Not

Insurance Fund Others 0.29% 11823600 1538500 0 11823600 applicab 0

Combination 804 le

Ma Yonghua Not

Domestic

0.24% 10022457 10022457 0 10022457 applicab 0

natural person

le

Hong Kong Not

Foreign legal

Securities Clearing 0.24% 9964534 -4264215 0 9964534 applicab 0

person

Company Limited le

Zhou Wei Not

Domestic

0.22% 8995300 -1000 0 8995300 applicab 0

natural person

le

Strategy investors or general legal

person becomes top 10 shareholders due None

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

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

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

Notes to relationship or ‘action in

Acquisition of Listed Companies". It is unknown to the Company whether there is any related

concert’ among the top 10 shareholders.connection or ‘Action in Concert’ as described by Rules of Information Disclosing Regarding

Changing of Shareholding Status of Listed Companies existing among the above shareholders.Explanation of the above-mentioned

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

shareholders' entrusted/entrusted voting

of voting rights.rights and waiver of voting rights

Special instructions for the existence of

None

special repurchase accounts among the

62Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

top 10 shareholders (if any) (see Note

11)

Shareholding of top 10 unrestricted shareholders

Un-restricted shares held at Category of shares

Name of the shareholder

the end of the reporting period Category of shares Quantity

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

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

Guan Hui 29081200 Common shares in RMB 29081200

Zhang Wenyou 19168167 Common shares in RMB 19168167

Gao Tao 15440000 Foreign shares in domestic exchange 15440000

Lyu Ruijun 12000005 Foreign shares in domestic exchange 12000005

Basic Pension Insurance Fund Combination

11823600 Common shares in RMB 11823600

804

Ma Yonghua 10022457 Foreign shares in domestic exchange 10022457

Hong Kong Securities Clearing Company

9964534 Common shares in RMB 9964534

Limited

Zhou Wei 8995300 Common shares in RMB 8995300

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

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

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

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

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

existing among the above shareholders.Guan Hui holds 1081200 shares of the Company's stock through an investor general

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

Shareholders among the top 10 participating in securities account. Zhang Wenyou holds 19168167 shares of the Company's stock

securities margin trading (if any) (see Note 4) through an investor credit securities account. Zhou Wei holds 163500 shares of the

Company's stock through an investor general account and 8831800 shares of the

Company's stock through an investor credit securities account.Shareholders holding more than 5% of the shares the top 10 shareholders and the top 10

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

shares

□ Applicable √ Not Applicable

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

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

□ Applicable √ Not Applicable

Whether top 10 common shareholders and top 10 un-restricted common shareholders have a buy-

back agreement dealing in reporting period

□ Yes √ No

63Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Top 10 common shareholders and top 10 un-restricted common shareholders had no buy-back

agreement dealing in reporting period.IV. Change of controlling shareholder or actual controller

□ Applicable √ Not Applicable

There was no change in the shareholding status of the company's directors supervisors and senior

management during the reporting period. Please refer to the 2023 annual report for details.V. Change of controlling shareholder or actual controller

Change of controlling shareholder during the reporting period

□ Applicable √ Not applicable

There was no change of holding shareholder in the report period.Change of actual controller during the reporting period

□ Applicable √ Not applicable

There was no change of substantial controller in the report period.

64Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

VIII. Status of Preferred Shares

□ Applicable √ Not applicable

There were no preferred shares during the reporting period.

65Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

IX. Status of Bonds

√ Applicable □ Not applicable

I. Enterprise bonds

□ Applicable √ Not applicable

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

□ Applicable √ Not applicable

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

□ Applicable √ Not applicable

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

instruments.IV. Convertible corporate bonds

√ Applicable □ Not applicable

1. Previous adjustments to the conversion price

1. The initial conversion price of "Bengang Convertible Bonds" is 5.03 yuan per share.

2. As the company implemented the 2020 equity distribution plan the conversion price of "Bengang

Convertible Bonds" was adjusted to RMB 5.02 per share on July 19 2021.

3. As the company implemented the 2021 mid-term equity distribution plan the conversion price of

"Bengang Convertible Bonds" was adjusted to RMB 4.55 per share on August 13 2021.

4. As the company implemented the 2021 equity distribution plan the conversion price of "Bengang

Convertible Bonds" was adjusted to RMB 3.95 per share on August 13 2021.

2. Cumulative share conversion

√ Applicable □ Not applicable

66Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Proportion

Proportion of

Start date Cumulative Cumulative Amount of

Name of of converted unconverted

and end Total issue Total issue conversion conversion shares not

Convertible shares to the amount to

date of quantity amount amount quantity(sha converted

Bond total issue the total

conversion (Yuan) res) (Yuan)

quantity issue

amount

Bengang 4th Jan

68000000116898290563101710

Convertible 2021 – 28th 68000000 232849541 6.01% 82.81%

00.000.000.00

Bond Jun 2026

3. The top ten holders of convertible bonds

Number of Percentage

convertible Amount of of

Nature of bonds held convertible bonds convertible

No. Convertible bond holders convertible bond at the end of held at the end of bonds held at

holders the reporting the reporting the end of

period period (yuan) the reporting

(sheets) period

E Fund Security Return Fixed Income

1 Pension Product-Construction Bank of Others 2444591 244459100.00 4.34%

China Limited

Industrial and Commercial Bank of

2 China Limited - Bosera Credit Bond Others 1382219 138221900.00 2.45%

Investment Fund

Huaxia Fund Extended Life No.9 Fixed

3 Income Pension Product-Merchants Others 1293068 129306800.00 2.30%

Bank Co.China Merchants Bank Co. Ltd -

4 Others 1206531 120653100.00 2.14%

Franklin Guohai Hengrui Bond Fund

Domestic non

5 Pacific Securities Co. State-owned legal 1169036 116903600.00 2.08%

person

China Construction Bank Corporation -

6 Xingquan Hengxin Bond Securities Others 1059488 105948800.00 1.88%

Investment Fund

National Social Security Fund portfolio

7 Others 943578 94357800.00 1.68%

207

China National Petroleum Corporation

8 Corporate Pension Plan-Industrial and Others 866399 86639900.00 1.54%

Commercial Bank of China Ltd.

67Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Pacific Capital Management - China

9 Merchants Bank - Pacific Premier Others 855355 85535500.00 1.52%

Tranche Treasure Product

China Merchants Bank Co. Ltd -

Bosera CSI Convertible and

10 Others 739300 73930000.00 1.31%

Exchangeable Bond Traded Open-ended

Index Fund

4. Significant changes in the guarantor’s profitability asset status and credit status

□ Applicable √ Not applicable

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

arrangements for debt repayment in future years

As of the end of the reporting period based on the company's major accounting data and financial

indicators for the past two years the company's convertible bond credit rating for this year has not

changed.V. The loss in the scope of consolidated statements during the reporting period

exceeded 10% of the net assets at the end of the previous year

□ Applicable √ Not applicable

VI. The company’s main accounting data and financial indicators for the past two

years as of the end of the reporting period

Unit: ten thousand yuan

Item Changes over ending

30 June 2024 31 December 2023

balance of last year

Current ratio 0.67 0.70 -4.29%

Debt-to-asset ratio 64.72% 61.89% 2.83%

Quick ratio 0.24 0.27 -11.11%

Changes over previous

Current period Previous period

period

Net profit after deducting

non-recurring gains and -162165.26 -103833.29 56.17%

losses

EBITDA total debt ratio -2.04% 1.99% -4.03%

Interest Coverage ratio -5.54 -3.05 81.64%

Cash Interest Coverage ratio 4.74 20.09 -76.41%

68Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

EBITDA Interest Coverage

-1.792.33-176.82%

ratio

Loan repayment rate 100.00% 100.00% 0.00%

Interest repayment rate 100.00% 100.00% 0.00%

69Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

X. Financial Report

I. Audit report

Whether the semi-annual report is audited

□ Yes √ No

The semi-annual report is not audited.II. Financial Statements

Statement in Notes are carried in RMB Yuan

1. CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Prepared by: Bengang Steel Plates Co. Ltd.Unit: Yuan

Items 30 Jun 2024 31 Dec 2023

Current assets

Cash at bank and on hand 1992324226.63 2194654161.34

Settlement provisions

Capital lent

Financial assets held for trading

Derivative financial assets

Notes receivable 783400896.20 453560095.49

Accounts receivable 1327038676.85 1328532598.47

Accounts receivable financing 191450087.40 806822622.43

Prepayments 567363480.87 674872999.29

Premium receivable

Reinsurance accounts receivable

Receivable deposit for reinsurance contract

Other receivables 243424884.42 318793157.58

Redemptory financial assets for sale

Inventories 7854274573.95 7708372894.81

Including: data assets

Contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 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 46910346.41 46910346.41

70Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Items 30 Jun 2024 31 Dec 2023

Other equity instrument investments 974463039.83 974463039.83

Other non-current financial assets

Investment property

Fixed assets 24878573917.57 25028192964.67

Construction in progress 4156908135.68 4308404147.31

Productive biological assets

Oil and gas assets

Right-of-use assets 1566663478.21 1319616179.37

Intangible assets 252638185.50 256020436.13

Including: data assets

Development expenditure

Including: data assets

Goodwill

Long-term deferred expenses

Deferred tax assets 531708321.88 467040631.42

Other non-current assets 121903869.78 137933599.61

Total non-current assets 32529769294.86 32538581344.75

Total assets 45631488543.54 46181979851.06

Current Liabilities

Short-term loans 495730592.00 328000000.00

Loan from central bank

Loan from other banks

Financial liability held for trading

Derivative financial liabilities

Notes payable 11559857567.62 10364993998.89

Accounts payable 2476396054.14 2809435260.77

Advance from customers

Contract liabilities 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 1083065.32 1175970.83

Current tax liabilities 41045519.93 55402959.11

Other payables 1291824477.57 1659284531.06

Handling charges and commission payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within one year 474487295.43 685881691.76

Other current liabilities 334009488.97 392122093.59

Total current liabilities 19599820519.12 19599405098.39

Non-current liabilities

Provision for insurance contract

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

71Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Items 30 Jun 2024 31 Dec 2023

Total non-current liabilities 9934177512.80 8983534970.00

Total liabilities 29533998031.92 28582940068.39

Shareholders' equity:

Share capital 4108221073.00 4108219302.00

Other equity instruments 947856709.19 947858134.16

Including: Preferred stock

Perpetual bond

Capital reserves 13272231048.85 13272225870.92

Less: treasury shares

Other comprehensive income -50371341.88 -50371341.88

Special reserves 3950302.39 54843.15

Surplus reserves 1195116522.37 1195116522.37

General risk reserve

Undistributed profits -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

Legal Representative: Huang Zuowei Person in charge of accounting: Zheng Zhengli Accounting Dept. Leader: Sun Yanbin

2. STATEMENT OF FINANCIAL POSITION OF THE PARENT COMPANY

Unit: Yuan

Items 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 1515826559.56 1243326802.56

Accounts receivable financing 161969807.22 693239068.68

Prepayments 557269854.41 664669952.97

Other receivables 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 2269191936.65 2269191936.65

Other equity instrument investments 974463039.83 974463039.83

72Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Items 30 Jun 2024 31 Dec 2023

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

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

73Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Items 30 Jun 2024 31 Dec 2023

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

3. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Unit: Yuan

Items Current period Previous period

1. Total operating income 28364539286.80 30567409205.03

Including: Operating income 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 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 102496404.95 99040677.75

Selling and distribution expenses 78868443.13 69901883.24

General and administrative expenses 351694254.72 339569021.49

Research and development expenses 36966260.63 32990679.09

Financial expenses 135182892.48 161557765.87

Including: Interest expense 192939391.68 234419462.35

Interest income 19612598.56 27351519.21

Add: Other income 84071493.95 3518092.14

Income on investment（“-” for loss） -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） 16164459.46 -17450773.47

Asset impairment loss （“-” for loss） -14313228.28 -84458260.66

74Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Items Current period Previous period

Assets disposal gains（“-” for loss） 10002955.91

3. Operational profit（“-” for loss） -1453590416.62 -951224234.61

Add: Non-operating income 8976877.17 51584548.03

Less: Non-operating expenses 27576186.51 50585327.13

4. Total profit (“-” for loss) -1472189725.96 -950225013.71

Less: Income tax expenses 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

In the current period of business combination under common control the net profit realized by the merged party

before the merger is: yuan and the net profit realized by the merged party in the previous period is: yuan

Legal Representative: Huang Zuowei Person in charge of accounting: Zheng Zhengli Accounting Dept. Leader: Sun Yanbin

4. STATEMENT OF COMPREHENSIVE INCOME OF THE PARENT COMPANY

Unit: Yuan

Items Current period Previous period

1. Total operating income 28760149571.95 30351590885.27

Less: Operating cost 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） -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）

75Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Items Current period Previous period

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

5. CONSOLIDATED STATEMENT OF CASH FLOWS

Unit: Yuan

Items 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 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

76Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Items Current period Previous period

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 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 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 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 -2505569.00 1838873251.94

Add: Cash and cash equivalents at the beginning of the period 1184774971.52 1296662683.20

6. Cash and cash equivalents at the ending of the period 1182269402.52 3135535935.14

6. CASH FLOW STATEMENT OF THE PARENT COMPANY

Unit: Yuan

Items 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

77Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Items Current period Previous period

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

508204963.64925373942.02

and 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

213951632.57174775117.17

interest

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

1074502887.78420642596.45

period

6. Ending balance of cash and cash equivalents 755164576.22 1973718012.26

78Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

7. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Unit: Yuan

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

79Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

80Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

8. STATEMENT OF CHANGE IN OWNER’S EQUITY OF THE PARENT COMPANY

Unit: Yuan

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

81Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

82Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

III. 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

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

83Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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.The financial statements have been approved for reporting by the board of directors of the

Company on 27 June 2024.IV. 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 materials

84Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024interpretations (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.V. 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.

(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

85Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

The Company shall on the acquisition date measure the assets given and liabilities incurred

or assumed by an enterprise for a business combination in light of their fair values and shall

record the balances between them and their carrying amounts into the profits and losses at the

current period. The Company shall recognize the positive balance between the combination

costs and the fair value of the identifiable net assets it obtains from the acquiree as goodwill.The Company shall treat the negative balance between the combination costs and the fair value

of the identifiable net assets it obtains from the acquiree into the profits and losses of the current

period.The intermediary costs and relevant fees for the business combination paid by the acquirer

including the expenses for audit assessment and legal services shall be recorded into the

profits and losses at the current period. The transaction expenses for the issuance of equity

securities for the business combination shall be recorded into the initial recognition amount of

equity securities. All identifiable assets liabilities and contingent liabilities of the acquiree that

meet the recognition criteria acquired in the merger are measured at fair value on the acquisition

date.Directly related expenses incurred for a business combination are recorded in the current

period's profit or loss when incurred; transaction costs of equity securities or debt securities

issued for a business combination are included in the initial recognition amount of the equity

securities or debt securities.

(6) Scope of consolidation and Consolidation of Financial Statements

1. Scope of consolidation

The scope of consolidation of consolidated financial statements is determined based on control

and the scope of consolidation includes the Company and all its subsidiaries. Control means

that the Company has power over the investee enjoys variable returns through 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

86Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

with those of the Company. If not it is necessary to make the adjustment according to the

Company’s accounting policies and accounting period when preparing the consolidated

financial statements.The owners’ interests profit or loss and comprehensive income of the subsidiary attributable

to the non-controlling shareholders shall be presented separately in the shareholders’ equity of

the consolidated balance sheet and under the item of net profit of the consolidated statement of

comprehensive income and under the item of total comprehensive income. Where losses

assumed by the minority exceed the minority’s interests in the beginning equity of a subsidiary

the excess shall be charged against the minority’s interests.

(1) Increasing new subsidiaries and businesses

If the Company has a new subsidiary due to business combination under common control

during the reporting period it shall adjust the beginning balance in the consolidated statement

of financial position when preparing consolidated statement of financial position. The revenue

expenses and profits of the subsidiaries from the acquisition date to the end of the reporting

period are included in the Company’s consolidated statement of comprehensive income. The

cash flow of the subsidiaries from the acquisition date to the end of the reporting period is

included in the Company’s consolidated statement of cash flows. And meanwhile the

Company shall adjust the relevant items of the comparative financial statements as if the

reporting entity for the purpose of consolidation has been in existence since the date the

ultimate controlling party first obtained control.When the Company becomes capable of exercising control over an investee under common

control due to additional investment or other reasons adjustment shall be made as if the

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

87Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

common control due to additional investment or other reasons the acquirer shall remeasure

its previously held equity interest in the acquiree to its fair value at the acquisition date. The

difference between the fair value and the carrying amount shall be recognized as investment

income for the period when the acquisition takes place. When the previously held equity

investment is accounted for under the equity method any other comprehensive income

previously recognized in relation to the acquiree’s equity changes shall be transferred to profit

or loss for the current period when the acquisition takes place.

(2) Disposing subsidiaries or businesses

1. General treatment

When the Company loses control over an investee due to partial disposal or other reasons the

acquirer shall re-measure the remaining equity interests in the acquiree to its fair value at the

acquisition date. The difference between sums of consideration received for disposal equity

shares and fair value of the remaining shares and sums of share of net assets of the subsidiary

calculated continuously from the acquisition date or the combination date based on the

previous shareholding proportion and goodwill shall be recognized as investment income for

the period when the Company loses control over acquiree. When the previously held equity

investment is accounted for under the equity method any other comprehensive income

previously recognized in relation to the acquiree’s equity changes and other equity changes

rather than changes from net profit other comprehensive income and profit distribution shall

be transferred to investment income for the current period when the Company loses control

over acquiree.

2. Disposing subsidiaries by multiple transactions

Where the Company loses control of a subsidiary in multiple transactions in which it

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

88Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

as a single transaction. In the consolidated financial statements the difference between the

consideration received and the corresponding proportion of the subsidiary’s net assets in

each transaction prior to the loss of control shall be recognized in other comprehensive

income and transferred to the profit or loss when the Company eventually loses control of

the subsidiary.If each of the multiple transactions which eventually results in loss of control of the

subsidiary do not form part of a bundled transaction apply the treatment of disposing partial

long-term equity investments in a subsidiary without loss of control prior to the loss of

control. After the loss of control apply the treatment of disposing the subsidiary in common

cases.

(3) Acquiring the subsidiaries’ equity interest held by non-controlling shareholders

Where the Company has acquired a subsidiary’s equity interest held by non-controlling

shareholders the difference between the increase in the cost of long-term investments as a

result of acquisition of non-controlling interests and the share of net assets of the subsidiary

calculated continuously from the acquisition date or the combination date based on the new

shareholding proportion shall be adjusted to the capital reserve( capital premium or share

premium) in the consolidated financial statements. If the balance of the capital reserve is not

sufficient any excess shall be adjusted against retained earnings.

(4) Disposing portion of equity investments in subsidiaries without losing control

When the Company disposes of a portion of the long-term equity investments in a subsidiary

without loss of control the difference between the amount of the consideration 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;

89Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

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

90Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

the translation of foreign currency financial statements related to this oversea business into the

disposal profits and losses of the current period.

(10) Financial instruments

The Company recognizes a financial asset financial liability or equity instrument when it

becomes a party to a financial instrument contract.

1. Classification of financial instruments

The Company shall classify financial assets on the basis of both the entity’s business model for

managing the financial assets and the contractual cash flow characteristics of the financial asset

as: financial assets measured at amortised cost financial assets measured at fair value 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

91Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

accounting mismatches financial assets that should be classified as measured at amortized

value or financial assets measured at fair value through other comprehensive income can be

designated as financial assets measured at fair value through profit or loss.The Company shall classify financial liabilities as financial liabilities measured at amortised

cost and financial liabilities measured at fair value through profit or loss at initial measurement.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.

92Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(2) Financial assets measured at fair value through other comprehensive income (debt

instruments)

Financial assets measured at fair value through other comprehensive income (debt instruments)

include receivables financing other debt investments etc. At initial recognition the Company

shall measure a financial asset at its fair value plus transaction costs that are directly attributable

to the acquisition or issuance of the financial asset. The financial assets are subsequently

measured at fair value. Changes in fair value are included in other comprehensive income

except for interest calculated using the effective interest method impairment losses or gains

and exchange gains and losses. When the financial assets are derecognized the accumulated

gain or loss previously recognized in other comprehensive income is transferred from other

comprehensive income and recognized in profit or loss.

(3) Financial assets at fair value through other comprehensive income (equity

instruments)

Financial assets at fair value through other comprehensive income (equity instruments). include

other equity instrument investments etc. At initial recognition the Company shall measure a

financial asset at its fair value plus transaction costs that are directly attributable to the

acquisition or issue of the financial asset. The financial assets are subsequently measured 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.

93Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(5) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include current financial liabilities

derivative financial liabilities etc. The Company shall measure the financial assets at fair value

at initial recognition. Transaction costs are recognised in profit or loss. Changes in fair value

are included in profit or loss.When the financial liabilities are derecognized the difference between the fair value and the.initially recorded amount is recognized as investment income and the gains and losses from

changes in fair value are adjusted.

(6) Financial liabilities measured at amortised cost

Financial liabilities measured at amortised cost include short-term borrowings notes. payables

accounts payables other payables long-term borrowings bonds payables long-term payables.At initial recognition the Company shall measure a financial liability at its fair value plus.transaction costs that are directly attributable to the acquisition or issue of the financial asset.Interests calculated by using the effective interest method during the holding period shall be

recognized in profit or loss.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.

94Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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).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.

95Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Where the recognition of a financial liability is totally or partially terminated the Company

shall include into the profits and losses of the current period the difference between the

carrying amount which has been terminated from recognition and the considerations it has

paid (including the non-cash assets it has transferred out and the new financial liabilities it

has assumed).Where the Company buys back part of its financial liabilities it shall distribute on the date

of repurchase the carrying amount of the whole financial liabilities in light of the

comparatively fair value of the part that continues to be recognized and the part whose

recognition has already been terminated. The gap between the carrying amount which is

distributed to the part whose recognition has terminated and the considerations it has paid

(including the noncash assets it has transferred out and the new financial liabilities it has

assumed) shall be recorded into the profits and losses of the current period.

5. Determination of the fair value of the financial assets (liabilities)

If active markets for the financial instruments exist the fair value shall be measured by quoted

prices in the active markets. If active markets for the financial instruments do not exist

valuation techniques shall be applied for the measurement. The Company uses valuation

techniques appropriate in the circumstances and for which sufficient data are available to

measure fair value. The Company chooses relevant observable inputs for identical or similar

assets or liabilities. Only when relevant observable inputs are unavailable or should the

Company use unobservable inputs for the asset or liability.

6. Impairment provision of the financial assets

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

96Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Company believes that the credit risk of the financial instrument has significantly increased

over 30 days after the due date unless there is solid evidence that the credit risk of the financial

instrument has not increased significantly since initial recognition.If the credit risk of a financial instrument at the reporting date is relatively low the Company

considers that the credit risk of the financial instrument has not increased significantly since

the initial recognition.If the credit risk of the financial instrument has increased significantly since the initial

confirmation the Company shall measure the loss allowance for a financial instrument at an

amount equal to the lifetime expected credit losses. If the credit risk on a financial instrument

has not increased significantly since initial recognition the Company shall measure the loss

allowance for that financial instrument at an amount equal to 12-month expected credit losses.The increase or reversal amount of loss allowance thus formed shall be included in the current

profits and losses as impairment losses or gains. For financial assets at fair value through other

comprehensive income (debt instruments) loss provisions are recognised in other

comprehensive income and impairment losses or gains are recognised in profit or loss at the

current period without reducing the carrying amount of the financial asset in the balance sheet.

(11) 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.

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

97Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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.

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.

98Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Significant influence is the power to participate in the financial and operating policy decisions

of the investee but not control or join control of those policies. If the Company could exert

significant influence over the investee the investee is the associate of the Company.

2. The initial cost of long-term equity investment from business acquisition

(1) Long-term equity investment from business acquisition

For a business combination under common control the initial investment cost of the long-term

equity investment shall be the absorbing party’s share of the carrying amount of the owner’s

equity of the party being absorbed in the consolidated financial statements of the ultimate

controlling party at combination date. The difference between the initial investment cost and

the carrying amount of the previously held equity investment together with the additional

investment cost for new shares at combination date shall be adjusted to the capital reserve. If

the balance of capital reserve is not sufficient any excess shall be adjusted to retained earnings.When an investor becomes capable of exercising control over an investee due to additional

investment or other reasons the difference between the initial investment cost recognized in

accordance with the above principles and the sum of the book value of the long-term equity

investment before the merger plus the book value of the cost for the further shares acquired on

the merger date shall be adjusted to the capital reserve. If the balance of capital reserve is not

sufficient any excess shall be adjusted to retained earnings.For a business combination not under common control the initial investment cost of the long-

term equity investment shall be the acquisition cost at the acquisition date. When an investor

becomes capable of exercising control over an investee due to additional investment or other

reasons the initial investment cost under the cost method shall be the carrying amount of

previously held equity investment together with the additional investment cost.

(2) The initial cost of the long-term equity investment other than from business acquisition

The initial cost of a long-term equity investment obtained by making payment in cash shall be

the purchase cost which is actually paid.The initial cost of a long-term equity investment obtained on the basis of issuing equity

securities shall be the fair value of the equity securities issued.

3. Subsequent measurement and profit or loss recognition

(1) Cost method

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

99Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

profits or losses except the dividend declared but unpaid which is included in the payment

when acquiring the investment.

(2) Equity method

A long-term equity investment in an associate or a joint venture shall be accounted for using

the equity method. Where the initial investment cost of a long-term equity investment exceeds

investor’s interest in the fair values of an investee’s identifiable net assets at the acquisition

date no adjustment shall be made to the initial investment cost. Where the initial cost is less

than the investor’s interest in the fair values of the investee’s identifiable net assets at the

acquisition date the difference shall be credited to profit or loss for the current period and the

cost of long-term equity investment shall be adjusted accordingly.The Company shall recognize its share of the investee’s net profits or losses as well as its share

of the investee’s other comprehensive income as investment income or losses and other

comprehensive income and adjust the carrying amount of the investment accordingly. The

carrying amount of the investment shall be reduced by the portion of any profit distributions or

cash dividends declared by the investee that is attributable to the investor. The investor’s share

of the investee’s owners’ equity changes other than those arising from the investee’s net profit

or loss other comprehensive income or profit distribution and the carrying amount of the long-

term equity investment shall be adjusted accordingly.During the holding period if the investee makes consolidated financial statements the

Company shall calculate its share based on the investee’s net profit other comprehensive

income and the amount of other owners' equity attribute to the investee in the consolidated

financial statements. The investor shall recognize its share of the investee’s net profits or losses

after making appropriate adjustments according to the Company’s accounting principles and

operating period based on the fair values of the investee’s identifiable net assets.The unrealized profits or losses resulting from transactions between the investor and its

associate or joint venture shall be eliminated in proportion to the investor’s equity interest in

the investee based on which investment income or losses shall be recognized except the

transaction of investment or sale of assets is a business. Any losses resulting from transactions

between the investor and investee which are attributable to asset impairment shall be

recognized in full.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.

100Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

If a joint venture or associated enterprise realizes net profits in the future the company resumes

recognizing its share of profits after the share of profits makes up for the share of unrecognized

losses.

(3) Disposal of long-term equity investment

When disposing long-term equity investment the difference between the proceeds actually

received and the carrying amount shall be recognized in profit or loss for the current period.Partial disposal of long-term equity investments accounted for by the equity method and the

remaining equity is still accounted for by the equity method the other comprehensive income

recognized by the original equity method shall be carried forward according to the same basis

as the direct disposal of related assets or liabilities by the investee. All other changes in the

interests of the holders are carried forward to the current profit and loss on a pro rata basis.When an investor can no longer exercise joint control of or significant influence over an

investee due to disposal of equity investment or other reasons any other comprehensive income

previously recognized shall be accounted for on the same basis as would have been required if

the investee had directly disposed of the related assets or liabilities for the current period upon

discontinuation of the equity method. Other owner's equity change shall be transferred into

profit or loss of current period in full when the Company cease to adopt the equity method.When an investor can no longer control the investee due to partial disposal when the individual

financial statements are prepared the remaining equity can exercise joint control or significant

influence on the investee the equity method shall be used to account for the remaining equity.It is deemed that the equity method is adopted for adjustment since the acquisition and the

other comprehensive income recognized before the control of the investee is obtained is carried

forward on the same basis as the direct disposal of related assets or liabilities by the investee

because the equity method is used for accounting. The confirmed changes in other owners’

equity are carried forward to the current profit and loss on a pro rata basis. If the remaining

equity cannot exercise joint control or exert significant influence on the investee it shall be

recognized as a financial asset and the difference between its fair value and book value on the

date when control is lost shall be included in the 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

101Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

before the loss of control the difference between the disposal price and the book value of the

corresponding disposed part of long-term equity investment is firstly recognized as other

comprehensive income in individual financial statements and then transferred to the current

profit and loss when the control is lost. If it is not a package transaction each transaction shall

be accounted separately.

(14) Fixed assets

1. Recognition of Fixed assets

The term "fixed assets" refers to the tangible assets held for the sake of producing commodities

rendering labor service renting or business management and of which useful life is in excess

of one fiscal year. No fixed asset may be recognized unless it simultaneously meets the

conditions as follows:

(1) The economic benefits pertinent to the fixed asset are likely to flow into the enterprise; and

(2) The cost of the fixed asset can be measured reliably.

Fixed assets are initially measured at cost (and considering the impact of expected dismantling

cost factors).Subsequent expenditures related to fixed assets are included in the cost of fixed assets when

the related economic benefits are likely to flow in and their costs can be reliably measured; the

book value of the replaced part is derecognized; all other subsequent expenditures are incurred

shall be included in the current profit and loss.

2. Fixed assets depreciation

Fixed assets are depreciated under the straight line method. The depreciation rate is determined

according to the category of assets the useful life and the expected residual rate. If the

components of the fixed assets have different useful lives or provide the economic benefits in

a different way then different depreciation rate or method shall be applied and the depreciation

of the components shall be calculated separately.Details of classification depreciation period residual value rate and annual depreciation rate

are as follows:

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

102Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Transportation and

straight line method 5-12 years 5.00 7.92-19.00

other equipment

4. Disposal of fixed assets

When a fixed asset is disposed or it is expected that no economic benefits will be generated

through use or disposal the recognition of fixed asset shall be de terminated. The amount of

disposal income of fixed assets raising from sell transfer scrapping or damage shall be

included in the current profit and loss after deducting its book value and related taxes.

(15) Construction in progress

Construction in progress is measured at the actual cost incurred. The actual cost includes

construction costs installation costs borrowing costs that meet the capitalization conditions

and other necessary expenditures incurred before the construction in progress reaches its

intended use status. Construction in progress is transferred to fixed asset when it has reached

its working condition for its intended use and depreciation will be accrued from the next month.

(16) Borrowing costs

1. Principle of the recognition of capitalized borrowing costs

Where the borrowing costs incurred to an enterprise can be directly attributable to the

acquisition and construction or production of assets eligible for capitalization it shall be

capitalized and recorded into the costs of relevant assets. Other borrowing costs shall be

recognized as expenses on the basis of the actual amount incurred and shall be recorded into

the current profits and losses.Assets eligible for capitalization refer to the fixed assets investment property inventories and

other assets of which the acquisition and construction or production may take quite a long time

to get ready for its intended use or for sale.

2. The capitalization period of borrowing costs

The capitalization period shall refer to the period from the commencement to the cessation of

capitalization of the borrowing costs excluding the period of suspension of capitalization of

the borrowing costs.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;

103Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(2) The borrowing costs has already incurred; and

(3) The acquisition and construction or production activities which are necessary to prepare the

asset for its intended use or sale have already started.When the qualified asset under acquisition and construction or production is ready for the

intended use or sale the capitalization of the borrowing costs shall be ceased.

3. The suspension of capitalization of borrowing costs

Where the acquisition and construction or production of a qualified asset is interrupted

abnormally and the interruption period lasts for more than 3 months the capitalization of the

borrowing costs shall be suspended. If the interruption is a necessary step for making the

qualified asset under acquisition and construction or production ready for the intended use or

sale the capitalization of the borrowing costs shall continue. The borrowing costs incurred

during such period shall be recognized as expenses and shall be recorded into the profits and

losses of the current period till the acquisition and construction or production of the asset

restarts.

4. Method of calculating the capitalization rate and capitalized amount of borrowing costs

For interest expense (minus the income of interests earned on the unused borrowing loans as a

deposit in the bank or investment income earned on the loan as a temporary investment) and

the ancillary expense incurred to a specifically borrowed loan those incurred before a qualified

asset under acquisition construction or production is ready for the intended use or sale shall

be capitalized at the incurred amount when they are incurred and shall be recorded into the

costs of the asset eligible for capitalization.The Company shall calculate and determine the to-be-capitalized amount of interests on the

general borrowing by multiplying the weighted average asset disbursement of the part of the

accumulative asset disbursements minus the general borrowing by the capitalization rate of the

general borrowing used. The capitalization rate shall be calculated and determined in light of

the weighted average interest rate of the general borrowing.During the capitalization period the exchange difference between the principal and interest of

the foreign currency special loan is capitalized and included in the cost of the assets that 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

104Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

1. Measurement of Intangible Assets

(1) Initial measurement is based on cost upon acquisition

The cost of an intangible asset on acquisition include the purchase price relevant taxes and

other necessary disbursements which may be directly attributable to bringing the intangible

asset to the conditions for the expected purpose.

(2) Subsequent Measurement

The Company shall analyze and judge the beneficial period of intangible assets upon

acquisition.Intangible assets with finite beneficial period shall be amortized under the straight-line method

during the period when the intangible asset can bring economic benefits to the enterprise. If it

is unable to estimate the beneficial period of the intangible asset it shall be regarded as an

intangible asset with uncertain service life and shall not be amortized.

2. Estimated useful lives of intangible assets with limited useful lives

Item Estimated useful life Criteria

Land use right 50 years Land use right certificate

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.

105Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(3) The way intangible assets generate economic benefits including being able to prove that

there is a market for the products produced by using the intangible assets or the intangible

assets themselves has market. If the intangible assets will be used internally it should be

able to prove that the intangible assets will be useful.

(4) The company has sufficient technical financial and other resources to complete the

development of the intangible asset and is able to use or sell the intangible asset.

(5) The expenditure attributable to the development phase of the intangible asset can be

measured reliably.If it is impossible to distinguish between expenditures in the research phase and expenditures

in the development phase all research and development expenditures incurred shall be

included in the current period's profit and loss.

(18) Impairment of long-term assets

For long-term assets such as long-term equity investments investment property under the cost

model fixed assets construction in progress right-of-use assets intangible assets with limited

useful lives and oil gas assets etc. the Company shall perform impairment tests at the period

end if there is clear indication of impairment. If the recoverable amounts of long-term assets

are less than their carrying amounts the carrying amounts of the assets shall be written down

to their recoverable amounts. The write-downs are recognized as impairment losses and

charged to current profit and loss. The recoverable amounts of long-term assets are the higher

of their fair values less costs to sell and the present values of the future cash flows expected to

be derived from the assets. The Company shall estimate its recoverable amount on an individual

basis. Where it is difficult to do so it shall determine the recoverable amount 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.

106Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

When making an impairment test on the relevant asset groups or combination of asset groups

containing business reputation if any evidence shows that the impairment of asset groups or

combinations of asset groups is possible the Company shall first make an impairment test on

the asset groups or combinations of asset groups not containing business reputation calculate

the recoverable amount compare it with the relevant carrying value and recognize the

corresponding impairment loss. Then the Company shall make an impairment test of the asset

groups or combinations of asset groups containing business reputation and compare the

carrying value of these asset groups or combinations of asset groups (including the carrying

value of the business reputation apportioned thereto) with the recoverable amount. Where the

recoverable amount of the relevant assets or combinations of the asset groups is lower than the

carrying value thereof it shall recognize the impairment loss of the business reputation.Impairment losses on long-term assets shall not be reversed in subsequent accounting periods

once recognized.

(19) Long-term deferred expense

The long-term deferred expense refers to the expenses incurred but shall be borne by current

and subsequent accounting period which is more than one year.The long-term deferred expense shall be amortized over its beneficiary period evenly

(20) Contract liability

When either party to a contract has performed the Company shall present the contract in the

statement of financial position as a contract asset or a contract liability depending on the

relationship between the Company’s performance and the customer’s payment. If a customer

pays consideration or the Company has a right to an amount of consideration before the

Company transfers a good or service to the customer the Company shall present the contract

as a contract liability. Contract assets and contract liabilities under the same contract are

disclosed in net amount.

(21) Employee benefits

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

107Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

relevant requirements shall in the accounting period in which employees provide services be

calculated according to prescribed bases and percentages in determining the amount of

employee benefits.The employee welfare expenses incurred by the company are included in the current profit and

loss or related asset costs based on the actual amount when they actually occur. Among them

non-monetary benefits are measured at fair value.

2. Accounting treatment of post-employment benefits

(1) Defined contribution plan

The Company shall recognize in the accounting period in which an employee provides

service pension fund and unemployment fund for employees as a liability according to the

local government regulations. The amount shall be calculated according to local prescribed

bases and percentages in determining the amount of employee benefits with a

corresponding charge to the profit or loss or cost of an asset for the current period. In

addition the Company also participates in the enterprise annuity plan/supplementary

pension insurance fund approved by relevant state departments. The Company pays a

certain proportion of the total salary of employees to the annuity plan/local social insurance

agency and the corresponding expenses are included in the current profit and loss or

related asset cost.

(2) Defined benefit plan

None

3. Accounting treatment of termination benefits

The Company shall recognize an employee benefits liability for termination benefits with a

corresponding charge to the profit or loss for the current period at the earlier of the following

dates: when the Company cannot unilaterally withdraw the offer of termination benefits

because of an employment termination plan or a curtailment proposal; or when the Company

recognizes costs or expenses related to a restructuring that involves the payment of termination

benefits.

(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

108Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(3) The amount of the obligation can be measured in a reliable way.

The estimated debts shall be initially measured in accordance with the best estimate of the

necessary expenses for the performance of the current obligation.To determine the best estimate an enterprise shall take into full consideration of the risks

uncertainty time value of money and other factors pertinent to the Contingencies. If the time

value of money is of great significance the best estimate shall be determined after discounting

the relevant future outflow of cash.The best estimate shall be conducted in accordance with the following situations respectively:

If there is a continuous range for the necessary expenses and if all the outcomes within this

range are equally likely to occur the best estimate shall be determined in accordance with the

average estimate within the range that is the average of the upper and lower limit.If there is not a sequent range for the necessary expenses and if the outcomes within this range

are not equally likely to occur the best estimate shall be determined as follows:

(1) If the Contingencies concern a single item it shall be determined in the light of the most

likely outcome.

(2) If the Contingencies concern two or more items the best estimate shall be calculated and

determined in accordance with all possible outcomes and the relevant probabilities.When all or some of the expenses necessary for the liquidation of an estimated debts of an

enterprise is expected to be compensated by a third party the compensation shall be separately

recognized as an asset only when it is virtually certain that the reimbursement will be obtained.The amount recognized for the reimbursement shall not exceed the book value of the estimated

debts.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.

109Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

If the contract contains two or more performance obligations the company shall allocate the

transaction price to each individual performance obligation based on the relative proportion of

the stand-alone selling price of the goods or services promised by each individual performance

obligation on the date of the contract. The company measures revenue based on the transaction

price allocated to each individual performance obligation.The transaction price is the amount of consideration to which the company expects to be

entitled in exchange for transferring promised goods or services to a customer excluding

amounts collected on behalf of third parties or amounts expected to be returned to customers.The company shall consider the terms of the contract and its customary business practices to

determine the transaction price. When determining the transaction price the company shall

consider the effects of all of the following: variable consideration the existence of a significant

financing component in the contract non-cash consideration and consideration payable to a

customer. The company determines the transaction price that includes variable consideration

at an amount that does not exceed the amount of accumulated recognized revenue that is

unlikely to be materially reversed when the relevant uncertainty is eliminated. If there is a

significant financing component in the contract the company shall recognise revenue at an

amount that reflects the price that a customer would have paid for the promised goods or

services if the customer had paid cash for those goods or services when (or as) they transfer to

the customer and use the effective interest method to amortize the difference between the

transaction price and the contract consideration during the contract period.The company transfers control of a good or service over time and therefore satisfies a

performance obligation and recognises revenue over time if one of the following criteria is

met. Otherwise the company satisfies the performance obligation at a point in time.(a) the customer simultaneously receives and consumes the benefits provided by the company’s

performance as the company performs;

(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

110Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

revenue only to the extent of the costs incurred until such time that it can reasonably measure

the outcome of the performance obligation.For performance obligations satisfied at a certain point in time the company shall recognises

revenue at the point when the customer obtains control of the relevant goods or services. To

determine the point in time at which a customer obtains control of a promised goods or services

the company shall consider requirements as follows:

(a) The company has a present right to payment for the promised goods or services and the

customer is presently obliged to pay for that;

(b) The company has transferred the legal title of the goods to the customer that is the

customer has the legal title to the goods;

(c) The company has transferred physical possession of the goods to the customer that is the

customer has taken possession of the goods;

(d) The company has transferred the significant risks and rewards of ownership of the goods

to the customer that is the customer has the significant risks and rewards of ownership of the

goods;

(e) The customer has accepted the promised goods or services.The Company determines whether it is the principal or agent when engaging in a transaction

based on whether it has control over the goods or services before transferring them to the

customer. If the Company is able to control the goods or services before transferring them to

the customer the Company is the principal and recognizes revenue based on the total

consideration received or receivable; otherwise the Company is the agent and recognizes

revenue based on the amount of commissions or fees it expects to be entitled to receive.

(2) The specific criteria of revenue recognition and measurement

Commodity sales contracts between companies and customers usually only include

performance obligations for the transfer of steel and other commodities. This type of

performance obligation is a performance obligation performed at a certain point in time. The

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.

111Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

If the costs incurred in fulfilling a contract with a customer are not within the scope of another

Standard for example Inventories Property Plant and Equipment or Intangible Assets the

company shall recognise an asset from the costs incurred to fulfil a contract only if those costs

meet all of the following criteria:

(a) the costs relate directly to a contract or to an expected contract;

(b) the costs generate or enhance resources of the Company that will be used in satisfying

performance obligations in the future; and

(c) the costs are expected to be recovered.The company shall recognise as an asset the incremental costs of obtaining a contract with a

customer if the company expects to recover those costs.An asset recognised in accordance with contract costs shall be amortised in consistent with the

transfer to the customer of the goods or services to which the asset relates. The company may

recognise the incremental costs of obtaining a contract as an expense when incurred if the

amortisation period of the asset is one year or less.The company shall 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.

112Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Government subsidies related to assets are government subsidies whose primary

condition is that an entity qualifying for them should purchase construct or otherwise

acquire long-term assets. The government subsidies related to incomes refers to

government subsidies other than those related to assets.The standard of the Company recognizing the government subsidies related to assets is:

an entity qualifying for them should purchase construct or otherwise acquire long-term

assets.The standard of the Company recognizing the government subsidies related to income is:

In addition to government subsidies related to assets government subsidies that have been

clearly targeted for subsidies.

2. Recognition

Government grants are recognized when the Company is able to meet the conditions

attached to them and is able to receive them.

3. Accounting treatment

Government subsidies related to assets shall be recognized by deducting the subsidies at

the caring amount of the assets or recognized as deferred income. Subsidies that

recognized as deferred income shall be recognized in profit or loss on a systematic basis

over the periods during the useful lives of the relevant assets (Subsidies related to daily

activities should be recorded in Other Income. Subsidies that unrelated to daily activities

should be recorded in Non-operating Income).The government subsidies related to incomes to compensate future expenses shall be

recognized as deferred income and transferred to current profit or loss (Subsidies related

to daily activities should be recorded in Other Income. Subsidies that unrelated to daily

activities should be recorded in Non-operating Income) in the period during which the

expenses compensation is recognized or deduct relevant cost or loss. Government

subsidies to compensate expenses or losses already incurred shall be recognized in current

profit and loss (Subsidies related to daily activities should be recorded in Other Income.Subsidies unrelated to daily activities should be recorded in Non-operating Income) or

deduct relevant cost or loss.The policy discount loans obtained by the company are divided into the following two

situations and are separately accounted for:

(a) The government allocates discounted funds to the loan bank and the loan bank

provides loans to the company at a policy preferential interest rate. The preferential

interest rate is used to calculate the relevant borrowing costs.(b) If the government directly allocates the discounted funds to the company the company

will offset the relevant borrowing costs with the corresponding discounts directly

accounted for the current profit or loss or recognized as deferred income.

(26) Deferred tax assets and deferred tax liabilities

Income tax includes current income tax and deferred income tax. Except for income tax

arising from business combinations and transactions or events directly recorded in owners'

equity (including other comprehensive income) the Company records current income tax and

deferred income tax in current profit or loss.Deferred tax assets and deferred tax liabilities are calculated based on the difference between

the tax bases of assets and liabilities and their carrying amounts (temporary differences).Income tax includes current income tax and deferred income tax. Except for income tax

arising from business mergers and transactions or events that are directly included in owner's

113Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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:

- 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.

(27) Leases

114Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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.

(2) Lease liabilities

At the beginning of the lease term the company recognizes lease liabilities for leases other

115Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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.

(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

116Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

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

117Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

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.

118Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

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

119Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

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

120Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

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

121Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

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

122Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

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.

123Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

VI. 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

(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

124Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Tax Preferential Terms for Comprehensive Resource Utilization Products and Services" and

enjoy the value-added tax refund policy.VII. 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

125Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

126Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

Total 1757149772.20 1776731322.33

127Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Items 2024/06/30 2023/12/31

Less: Provision for bad debts 430111095.35 448198723.86

Total 1327038676.85 1328532598.47

128Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

129Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

130Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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.

131Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

Total 567363480.87 99.99 674872999.29 100.00

132Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

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

133Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(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

134Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

3 12504978.59 12504978.59 100.00 12504978.59 12504978.59 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

135Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

Steel 15167.78 15167.78 100.00 15167.78 15167.78 payment

Headquarter

Factory

Zibo

Zhouchun

Irrecoverable

Welfare 15666.59 15666.59 100.00 15666.59 15666.59 payment

Spring

Factory

Weifang

Head Office

Irrecoverable

of 25179.84 25179.84 100.00 25179.84 25179.84 payment

Constructive

Materials

Jiaozhou

Zhenxing

Metal Irrecoverable

411891.80411891.80100.00411891.80411891.80

payment

Product

Plant

(Weifang)

Historical Irrecoverable

242845.73242845.73100.00242845.73242845.73

payment

debts

136Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

2024/06/302023/12/31

Bad

Company Carrying Provision for debts Carrying Provision for

Reason

amount bad debts ratio amount bad 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

Steel 49016.73 49016.73 100.00 49016.73 49016.73 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

Benxi

Irrecoverable

Fangyuan 80000.00 80000.00 100.00 80000.00 80000.00 payment

Provition

137Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

2024/06/302023/12/31

Bad

Company Carrying Provision for debts Carrying Provision for

Reason

amount bad debts ratio amount bad debts

(%)

Management

Agent

Weifang

Sanfeng

Irrecoverable

Steel 81657.46 81657.46 100.00 81657.46 81657.46 payment

Pipeline Co.Ltd.Qingdao

Liduo

Irrecoverable

Economy 133163.36 133163.36 100.00 133163.36 133163.36 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

Harbin Band Irrecoverable

403559.70403559.70100.00403559.70403559.70

payment

Steel Factory

Bengang

Irrecoverable

Group 6617.52 6617.52 100.00 6617.52 6617.52 payment

International

138Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

2024/06/302023/12/31

Bad

Company Carrying Provision for debts Carrying Provision for

Reason

amount bad debts ratio amount bad debts

(%)

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

Province

Jinghai Irrecoverable

297.75297.75100.00297.75297.75

payment

Material

Distribution

Co. Ltd

Total 18245545.94 18245545.94 18245545.94 18245545.94

139Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

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

140Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(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

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

141Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Percentage

Provision for

Nature or of total other

Company Amount Aging bad debts at

content receivables

2024/06/30

(%)

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

142Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(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

143Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

144Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(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

145Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(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

146Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

147Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(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

148Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(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

149Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

（2）Increase in current period 106370818.07 705687704.82 5428986.40 11923234.34 829410743.63

150Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Furniture

Transportation

Items Buildings Machinery and office Total

equipment and others

equipment

—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

（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

151Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

152Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

153Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

42414525.2542414525.2531033533.0631033533.06

(Energy-saving and

Environmental Protection

Renovation of No. 5 Blast

154Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

2024/06/302023/12/31

Items Total Total

Gross carrying amount impairme Book value Gross carrying amount impairmen Book value

nt t

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

Optimisation and upgrading of

logistics in the new Special 16118806.00 16118806.00 11706800.00 11706800.00

Steel District

155Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

2024/06/302023/12/31

Items Total Total

Gross carrying amount impairme Book value Gross carrying amount impairmen Book value

nt t

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

156Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

Modification and

157Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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 (%

(%)

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

158Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

159Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(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

(2) Increase in current

period

160Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Items Land use right Buildings Machinery Total

—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

（2）Increase 13397.45 3368853.18 3382250.63

—Provision 13397.45 3368853.18 3382250.63

161Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Items Software Land use right Total

（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

Total 2126933777.80 531708321.88 1869664324.70 467040631.42

2. Deferred tax liabilities before taking into consideration of the balance offsetting

162Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

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

163Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

2024/06/302023/12/31

Items Gross carrying Impairmen Gross carrying Impairmen

Book value Book value

amount t amount t

Prepaymen

121903869.7121903869.7137933599.6137933599.6

t for long-

8811

term assets

121903869.7121903869.7137933599.6137933599.6

Total

8811

164Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(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

165Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(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

166Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

167Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

168Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

169Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

Total 5522410434.46 5451381676.38

170Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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 converted 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).

171Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(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

172Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Transfer to non- Related to

Offsetting

Transfer to Other

Items 2023/12/31 Increase operating cost or 2024/06/30 assets or

other income changes

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

173Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024Government 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

174Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

175Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(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.

176Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(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.

177Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(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.

178Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(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

179Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

180Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(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

Less: Statutory surplus reserves

Discretionary reserves

181Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Items Current period Previous period

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

： 22982790083.47 23737449619.00 422131300.06 434178194.37 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

-Recognize

27942407986.7428743063625.90420272981.66432990677.97

over a certain period

of time

182Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Principal business Principal business Other business Other business

Item Revenue Cost Revenue Cost

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

(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

183Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Items Current period Previous period

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

(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

184Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Previous

Items Current period

period

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

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

185Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Items Current period Previous period

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

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

186Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

(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

187Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Items Current period

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

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

188Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Items Current period Previous period

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

(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

189Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Items Current period Previous period

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

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

190Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

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

191Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

VIII. Equity in other entities

(1) Equity in subsidiaries

1. Constitution of enterprise group

Principal Shareholding ratio

Registered Registrati Notes of

Name of the subsidiary place of Acquisition method

capital on place business Direct Indirect

business

Guangzhou Bengang Steel & 2000000 Guangzho Guangzho

Sales 100.00 Establishment

Iron Trading Co. Ltd 00.00 u u

Shanghai Bengang

2299367

Metallurgy Science and Shanghai Shanghai Sales 100.00 Establishment

18.57

Technology Co. Ltd

Dalian Benruitong

6500000

Automobile Material Dalian Dalian Manufacturing 65.00 Establishment

0.00

Technology Co. Ltd

Bengang POSCO Cold-rolled 1019781 Business combination

Benxi Benxi Manufacturing 75.00

Sheet Co. Ltd. 571.10 under common control

Changchun Bengang Steel & 2814487 Changchu Business combination

Changchun Sales 100.00

Iron Trading Co. Ltd. 5.36 n under common control

Yantai Bengang Steel Sales 2191003 Business combination

Yantai Yantai Sales 100.00

Co. Ltd. 29.41 under common control

Tianjin Bengang Steel 2303180 Business combination

Tianjin Tianjin Sales 100.00

Trading Co. Ltd. 95.80 under common control

Benxi Bengang Steel & Iron 3000000

Benxi Benxi Sales 100.00 Establishment

Sales Co. Ltd. 0.00

Shenyang Bengang

2000000

Metallurgy Science and Shenyang Shenyang Sales 100.00 Establishment

00.00

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.

192Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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.

193Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

IX. 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

194Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

X. 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.

195Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

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

196Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

XI. 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

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

197Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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

◆Investment in other

974463039.83974463039.83

equity instruments

Total assets

continuously measured 1165913127.23 1165913127.23

at fair value

XII. 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”.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:

198Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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.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

Same parent company

Limestone Mine Co. Ltd.

199Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Name of Other related parties Relationship

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

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.

200Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Name of Other related parties Relationship

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.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.

201Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Name of Other related parties Relationship

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.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.

202Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Name of Other related parties Relationship

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.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.

203Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

The content of Whether

Amount of the

Name related party Current period transactions transaction Previous period

approved limit is

transactions

exceeded

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.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

204Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

The content of

Name related party Current period Previous period

transactions

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

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.

205Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Company as the lessee

Current period Previous period

Rental Rental

costs for costs for

short- Variable short- Variable

term lease term lease

Interest Interest

leases payments Increased leases payments Increased

Lease capital expense on expense on

Lessor and not included right to and not included right to

category Lease charges lease Lease charges lease

leases of in the use leases of in the use

liabilities liabilities

low-value measurement assets low-value measurement assets

assumed assumed

assets of the lease assets of the lease

with liability with liability

simplified simplified

treatment treatment

Benxi Steel Land use

& Iron right

(Group) 7669068.17

27638772.0619500054.0027627809.2619750096.20

Steel & square meter

Iron Land use

Process right

206Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Current period Previous period

Rental Rental

costs for costs for

short- Variable short- Variable

term lease term lease

Interest Interest

leases payments Increased leases payments Increased

Lease capital expense on expense on

Lessor and not included right to and not included right to

category Lease charges lease Lease charges lease

leases of in the use leases of in the use

liabilities liabilities

low-value measurement assets low-value measurement assets

assumed assumed

assets of the lease assets of the lease

with liability with liability

simplified simplified

treatment treatment

and 42920.00

Logistics square meter

Co. Ltd.Benxi Steel

2300 Hot

& Iron

rolling 8049080.52 3870344.34 8049080.53 3736932.14

(Group)

product line

Steel &

207Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Current period Previous period

Rental Rental

costs for costs for

short- Variable short- Variable

term lease term lease

Interest Interest

leases payments Increased leases payments Increased

Lease capital expense on expense on

Lessor and not included right to and not included right to

category Lease charges lease Lease charges lease

leases of in the use leases of in the use

liabilities liabilities

low-value measurement assets low-value measurement assets

assumed assumed

assets of the lease assets of the lease

with liability with liability

simplified simplified

treatment treatment

Iron related real

Process estate

and

Logistics

Co. Ltd.Benxi 1780 Hot

7175818.862980721.707557730.912877975.14

Beiying rolling

208Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Current period Previous period

Rental Rental

costs for costs for

short- Variable short- Variable

term lease term lease

Interest Interest

leases payments Increased leases payments Increased

Lease capital expense on expense on

Lessor and not included right to and not included right to

category Lease charges lease Lease charges lease

leases of in the use leases of in the use

liabilities liabilities

low-value measurement assets low-value measurement assets

assumed assumed

assets of the lease assets of the lease

with liability with liability

simplified simplified

treatment treatment

Steel & product line

Iron related real

(Group) estate

Co. Ltd.Bengang

Land use

Group Co. 4972711.56 1224959.40 4972711.54 1315378.20

right

Ltd.

209Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Current period Previous period

Rental Rental

costs for costs for

short- Variable short- Variable

term lease term lease

Interest Interest

leases payments Increased leases payments Increased

Lease capital expense on expense on

Lessor and not included right to and not included right to

category Lease charges lease Lease charges lease

leases of in the use leases of in the use

liabilities liabilities

low-value measurement assets low-value measurement assets

assumed assumed

assets of the lease assets of the lease

with liability with liability

simplified simplified

treatment treatment

728282.30

square meter

Ansteel

Group machinery

Energy- and 12063482.04 119211.50

Saving equipment

Technology

210Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

Current period Previous period

Rental Rental

costs for costs for

short- Variable short- Variable

term lease term lease

Interest Interest

leases payments Increased leases payments Increased

Lease capital expense on expense on

Lessor and not included right to and not included right to

category Lease charges lease Lease charges lease

leases of in the use leases of in the use

liabilities liabilities

low-value measurement assets low-value measurement assets

assumed assumed

assets of the lease assets of the lease

with liability with liability

simplified simplified

treatment treatment

Services

Co. Ltd.

211Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

(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.Benxi Steel Group Mining

Accounts receivable Liaoyang Jiajiaopu Iron Mine 72885.60 728.86 303609.00 3036.09

Co. Ltd.

212Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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 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.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.

213Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

30 June 2024 31 December 2023

Items Name Gross carrying Provision for Gross carrying Provision for

amount bad debts amount bad debts

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.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.

214Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

30 June 2024 31 December 2023

Items Name Gross carrying Provision for Gross carrying Provision for

amount bad debts amount bad debts

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.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.

215Bengang Steel Plates Co. Ltd. Semi-Annual Report 2024

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)

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.Benxi Iron and Steel (Group)