Bengang Steel Plates Co. Ltd. Annual Report 2025
Bengang Steel Plates Co. Ltd.Annual Report 2025
【April 2026】
1Bengang Steel Plates Co. Ltd. Annual Report 2025
2025 Annual Report
Ⅰ. Important Notice Table of Contents and Definitions
The Board of Directors the Supervisory Board and all Directors Supervisors and Senior
Management of the Company ensure the authenticity accuracy and completeness of this annual
report and confirm that there are no false records misleading statements or material omissions.They assume individual and joint legal responsibility for the report.Huang Zuowei the person in charge of the company Liu Tiecheng the person in charge of
accounting work and E Jianan the person in charge of the accounting organization (accounting
officer) hereby confirm that the financial report in this annual report is true accurate and complete.All directors have attended the board meeting for reviewing this report.This report involves forward-looking statements such as future plans which do not constitute a
substantial commitment of the company to investors. Investors are advised to pay attention to
investment risks. This report is prepared in Chinese and English respectively. In the event of
discrepancies in the interpretation of Chinese and foreign texts the Chinese version shall prevail.The Company has described the existing risks and countermeasures in detail in this report please
refer to the content of Section 3-11 "Risks Faced by the Company and Countermeasures". "China
Securities Journal" "Securities Times" "Hong Kong Commercial Daily" and Juchao Information
Network (www.cninfo.com.cn) are selected as the company's information disclosure media. All
information of the company is subject to the information published in the above-mentioned
designated media. Investors are kindly advised to pay attention to investment risks.The Company plans not to pay cash dividends issue bonus shares or convert capital reserves into
share capital.As of the end of the reporting period the parent company had unrecovered losses:
□Applicable □Not applicable
The net profit of the parent company in 2025 was RMB -4085561948.08 yuan and the cumulative
undistributed profit as of the end of 2025 was negative.
2Bengang Steel Plates Co. Ltd. Annual Report 2025
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..............10
IV. Corporate Governance Environment and Society.....39
V. Important Events................................. 62
VI. Status of Share Capital Changes and Shareholde..106
VII. Status of Bonds............................... 115
VIII. Financial Report............................. 120
3Bengang Steel Plates Co. Ltd. Annual Report 2025
Reference File Directory
1. Financial statements containing the signatures and seals of legal representative chief financial
officer and chief accountant;
2. Original audit report stamped by the accounting firm and signed and stamped by certified public
accountants;
3. The originals of all company documents and announcements publicly disclosed during the
reporting period;
4. Annual reports published in other securities markets.
4Bengang Steel Plates Co. Ltd. Annual Report 2025
Definition
Terms to be defined Refers to Content of Definition
Bengang Bancai the Company the
Listed Company Refers to Bengang Steel Plates Co. Ltd.Ansteel Refers to Ansteel Group Co. Ltd.Bengang Group Refers to Bengang Group Co. Ltd.Bengang Steel Co. Bengang Co. Refers to Benxi Steel & Iron (Group) Co. Ltd.SSE Refers to Shenzhen Stock Exchange
Liaoning Provincial State-asset Refers to Liaoning State-owned Asset Supervisory andAdministration Management Committee
Bengang Posco Refers to Bengang Posco Cold-rolled Sheet Co. Ltd.Ansteel Finance Co. Refers to Ansteel Group Finance Co. Ltd.Angang Refers to Angang Steel Company Limited
Vanadium & Titanium Co. Refers to Pangang Group Vanadium & Titanium ResourcesCo. Ltd.Linggang Refers to Lingyuan Iron & Steel Co. Ltd.
5Bengang Steel Plates Co. Ltd. Annual Report 2025
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
Registered Address No 16 Renmin Road Pingshan District Benxi City Liaoning Province
Postal Code of Registered
117000
Address
Historical Changes of
None
Registered Address
Office Address No1-1 Gangtie Road Pingshan District Benxi City Liaoning Province
Postal Code of Office
117000
Address
Company Website None
Email bgbc000761@126.com
II. Contact Information
Secretary of the Board Representative of Stock Affairs
Name Liu Tiecheng Chen Liwen
Address No1-1 Gangtie Road Pingshan District No1-1 Gangtie Road Pingshan DistrictBenxi City Liaoning Province Benxi City Liaoning Province
Tel 024-47827003 024-47828980
Fax 024-47827004 024-47827004
Email ltcjldd@163.com bgbc000761@126.com
6Bengang Steel Plates Co. Ltd. Annual Report 2025
III. Information Disclosure and Place for Consulting
Stock exchange website for annual report disclosure http://www.szse.cn
Designated media and website for annual report disclosure "China Securities Journal" "Securities Times" CNINFO(http://www.cninfo.com.cn)
Annual report archive location Secretary Office of the Board Bengang Steel Plate Co. Ltd.IV. Change of Business Registration
Organization Code 91210000242690243E
Changes of principal business activities since listing (if any) No change
On August 20 2021 the company's original actual controller
the State-owned Assets Supervision and Administration
Commission of Liaoning Provincial People's Government
signed the "Agreement on the Free Transfer of State-owned
Equity of Benxi Steel Group Co. Ltd. between the State-owned
Assets Supervision and Administration Commission of
Liaoning Provincial People's Government and Angang Group
Changes of the controlling shareholder in the past (is any) Co. Ltd." The State-owned Assets Supervision and
Administration Commission of Liaoning Province transferred
51% of its shares in Benxi Steel Group Co. Ltd. to Angang
Group Co. Ltd. The business registration change was
completed on October 12 2021 and Angang Group Co. Ltd.became the actual controller of the company. The company's
direct controlling shareholder remains unchanged still being
Benxi Steel (Group) Co. Ltd.V. Other Information
The information of accounting Firm engaged by the Company:
Name of the accountants’ firm BDO China Shu Lun Pan Certified Public Accountants LLP
Address of the accountants’ firm Address: 4/F 61 Nanjing Rd. East Huangpu Shanghai
Name of the signing auditors Guo Shunxi Fu Yangyi
Sponsor engaged by the Company to conduct sustained supervision during the reporting period
□Applicable □Not applicable
Financial advisor responsible for ongoing supervision during the reporting period
□Applicable □Not applicable
VI. Key accounting data and financial indicators
Whether the Company needs to retrospectively adjust or restate the accounting data of previous years
□Yes□No
Changes over
FY 2025 FY 2024 FY 2023
previous year
Operating income（RMB） 46392250494.48 51266361501.22 -9.51% 57957301717.02
Net profit attributable to
the shareholders of the -3942278349.12 -5037271398.28 21.74% -1720871697.00
listed company（RMB）
Net profit after deducting
of non-recurring gain/loss -4027129631.46 -5221601823.63 22.88% -2062055810.29
attributable to the
shareholders of listed
7Bengang Steel Plates Co. Ltd. Annual Report 2025
company（RMB）
Net Cash flow generated by
-1788816767.801100287994.25-262.58%4346233881.23
business operation（RMB）
Basic earnings per share -0.960 -1.226 21.70% -0.419
(RMB/Share)
Diluted earnings per share -0.960 -1.226 21.70% -0.419
(RMB/Share)
Weighted average net -39.74% -34.29% -5.45% -9.60%
assets yield
Changes over
2025/12/312024/12/312023/12/31
previous year
Gross assets（RMB） 45770013536.58 45815896140.58 -0.10% 46517731929.05
Net assets attributable to
shareholders of the listed 7935782007.83 11887217861.48 -33.24% 17208525613.69
company（RMB）
In the most recent three accounting years the lower of the net profit before and after deducting non-recurring gains and losses has
been negative and the audit report for the most recent year indicates uncertainty regarding the company's ability to continue as a
going concern
□Yes□No
The lower of the net profit before and after deducting non-recurring gains and losses is negative
□Yes □No
Item 2025 2024 Notes
Operating income (RMB) 46392250494.48 51266361501.22 Total operating income
Amount deducted from
operating income (RMB) 815909080.85 4271862046.64
Sale of raw materials and scrap provision of
services etc.Operating income after
deductions (RMB) 45576341413.63 46994499454.58 Amount of operating income after deductions
VII. Differences between CAS and IFRS
1. Differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese
accounting standards.□Applicable □Not applicable
There are no differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese accounting
standards during the reporting period.
2. Differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese
accounting standards.□Applicable □Not applicable
There are no differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese accounting
standards during the reporting period.VIII. Key financial indicators by quarter
Unit：RMB
8Bengang Steel Plates Co. Ltd. Annual Report 2025
First quarter Second quarter Third quarter Fourth quarter
Operation income 12337783878.17 12360016543.82 10503033603.71 11191416468.78
Net profit attributable to
the shareholders of the -766311108.86 -632966672.04 -816510848.81 -1726489719.41
listed company
Net profit after deducting
non-recurring gain/loss
attributable to the -768926383.01 -681453412.77 -843434416.83 -1733315418.85
shareholders of listed
company
Net cash flows generated
by operating activities -417024548.77 788654312.81 -470589947.54 -1689856584.30
Whether the above financial indicators or their totals differ materially from the financial indicators disclosed in the company's
previously released quarterly or semi-annual reports.□Yes□No
IX. Items and Amount of Non-recurring Profits and Losses
□Applicable □Not applicable
Unit：RMB
Item 2025 2024 2023 Notes
Gains and losses on disposal of non-current assets (including the
write off part of the provision for impairment) -44758947.66 -35999024.90 298940955.41
Government subsidy attributable to profit and loss of current
period (except such government subsidy closely related to the
company's normal business operation meeting the regulation of 104879166.04 180819165.49 100870396.00
national policy and enjoyed constantly in certain quota or
quantity according to a certain standard)
Profit or loss from investment or assets entrusted to others -6626340.44
Reversal of impairment provision for individually tested
receivables 21641769.22 18456201.45
Current period net profit or loss of subsidiaries from the
beginning of the period to the merger date under common control 16120746.07
business combination.Gains and losses of debt restructuring 17512835.36 6459490.86 5200982.08
Other non-operating income and expenses other than above 5168882.16 40152707.29 -51690430.09
Less: impact of income tax 19492491.17 33544011.54 5654983.26
impact on Non-controlling Interests (after tax) 99931.61 8134849.37 -143533.59
Total 84851282.34 184330425.35 341184113.29 --
Specific circumstances of other items that meet the definition of non-recurring gains and losses:
□Applicable □Not applicable
The company has no other specific circumstances that meet the definition of non-recurring gains and losses.Explanation of situations where non-recurring gains and losses items listed in the "Public Offering of Securities Information
Disclosure Explanatory Notice No. 1 – Non-Recurring Gains and Losses" are defined as recurring gains and losses items.□Applicable □Not applicable
The company has no situations where non-recurring gains and losses items listed in the "Public Offering of Securities Information
Disclosure Explanatory Notice No. 1 – Non-Recurring Gains and Losses" are defined as recurring gains and losses items.
9Bengang Steel Plates Co. Ltd. Annual Report 2025
III. Management Discussion and Analysis
I. Main Business Operations During the Reporting Period
1. Main business main products and their uses
During the reporting period the Company's primary business operations encompassed steel smelting rolling and processing power
generation coal chemicals specialty steel bars railway operations import and export trade R&D and product sales. By
introducing world-class equipment and technology the Company implemented upgrades and modernization across its core steel
operations thereby establishing a premium steel production base. This initiative has resulted in a comprehensive product portfolio
comprising over 60 varieties and more than 7500 specifications. The Company's flagship products—including automotive panels
appliance sheets oil pipeline steel container plates and shipbuilding plates—are widely utilized across sectors such as automotive
home appliances petrochemicals aerospace machinery manufacturing energy and transportation construction and decoration and
metal products; furthermore these products are exported to numerous countries and regions worldwide.
2. Business model
Procurement Model: The Company's procurement model encompasses both domestic and international procurement. Domestic
procurement is conducted through collaborative purchasing centralized tendering (both public and invited) price inquiries and
comparisons competitive bidding and negotiations. International procurement is carried out via long-term agreements direct
purchasing public and invited tendering price inquiries and comparisons competitive negotiations and consultative purchasing;
these activities are primarily handled by Angang International Trade Benxi Branch.Sales Model: The company's sales operations are divided into domestic and export markets. Domestic sales primarily focus on
futures-based transactions utilizing distribution channels centered on direct supply general distribution and engineering projects.Contract orders are organized in advance on a monthly basis and production is subsequently scheduled in accordance with these
orders. Tailored to the specific characteristics of different regions distribution channels and industries the company implements a
variety of pricing strategies and sales methods—including deferred settlement for futures "one factory one policy" approaches and
index-based pricing. Export sales are handled by Ansteel International Trade Benxi Branch which acts as the company's export
agent with the company covering the associated agency fees.
3.Main Performance Drivers
The company focuses on supporting Angang Group in its pursuit of becoming a world-class enterprise. Adhering to a strategy of
intensive development centered on economic efficiency we consolidate our "Lean + Dual Foundations" framework and practice a
data-driven approach to business management. We employ extraordinary measures to address shortcomings and optimize our
structural layout thereby actively and effectively navigating external challenges characterized by strong supply and weak demand.Prioritizing stability and quality we implement the "Eight Major Efficiency" metrics; across the entire process chain we
systematically enhance process technologies equipment precision and production stability to foster high-efficiency steady output.Focusing on value creation—and grounded in a rolling budget system—we adopt a disciplined approach of "calculating first acting
second; calculating while acting; and calculating after acting." We have established comprehensive systems for performance metrics
accountability and assessment to optimize resource allocation and drive the realization of untapped potential and quality
improvements. Leveraging technological innovation we drive the upgrading of our product portfolio empower operations through
digitalization implement energy-saving and carbon-reduction retrofits and modernize energy-consuming equipment to facilitate
overall industrial upgrading. Finally with a sharp focus on efficiency and profitability we utilize transformative reforms to break
through bottlenecks. We reinforce the interests of key stakeholders strengthen internal synergies address deficiencies and mobilize
our entire workforce to unlock potential and enhance quality thereby facilitating a fundamental shift from a production-oriented
model to a business-management-oriented model.During the reporting period the company’s main business and business model have not changed.II. Industry Overview During the Reporting Period
10Bengang Steel Plates Co. Ltd. Annual Report 2025
The Company operates within the steel industry which serves as a vital foundational sector of our national economy a crucial pillar
in the construction of a modern and powerful nation and a key domain for realizing green and low-carbon development.In 2025 China's steel industry is characterized by "volume reduction alongside quality enhancement profit recovery and structural
optimization." Guided by policies aimed at "controlling total output optimizing supply strengthening foundations and driving
transformation" the industry has reversed a two-year downward trend achieving a significant improvement in economic
performance.According to data from the National Bureau of Statistics annual crude steel output totaled 961 million tons a year-on-year decrease
of 4.4%; pig iron output reached 836 million tons down 3.0% year-on-year; and finished steel output stood at 1.446 billion tons an
increase of 3.1% year-on-year reflecting a continued optimization of the product structure. In terms of market demand domestic
apparent consumption of crude steel amounted to 829 million tons a year-on-year decline of 7.1%. While demand for steel in
traditional construction sectors continued to weaken the share of steel consumed by the manufacturing sector rose to 51%—
surpassing the construction sector for the first time—marking a historic shift in the demand structure. Regarding exports finished
steel exports reached 119 million tons up 7.5% year-on-year and hitting a record high which effectively offset the pressure caused
by insufficient domestic demand. On the import side cumulative finished steel imports for the full year totaled 6.059 million tons a
year-on-year decrease of 10.7%. The annual average value of the China Steel Price Index (CSPI) for 2025 stood at 93.19 points
down 9.1% year-on-year.In 2025 the Ministry of Industry and Information Technology (MIIT) released a series of regulations and policies— including the
Normative Conditions for the Iron and Steel Industry (2025 Edition) and the Work Plan for Stabilizing Growth in the Iron and Steel
Industry (2025– 2026)—with the core objective of establishing a two-tier evaluation system to facilitate the concentration of
production factors within leading enterprises. These measures aim to stabilize growth and curb excessive internal competition
thereby addressing challenges such as declining demand razor-thin profit margins widespread industry-wide losses and cutthroat
competition. Furthermore the policies seek to drive a green and low-carbon transition by implementing "Dual Carbon" goals
achieving ultra-low emission standards and enforcing constraints on energy consumption intensity. They also target structural
optimization and high-end upgrading to resolve issues characterized by low-end overcapacity a shortage of high-end products and
low industry concentration. Additionally the initiatives promote digitalization and intelligent manufacturing to enhance operational
efficiency product quality and flexible production capabilities. Finally they focus on expanding domestic demand stabilizing
external demand and safeguarding supply chains by identifying and tapping into new market opportunities within the construction
infrastructure manufacturing and steel structure sectors. Under the premise of stabilizing the industry's fundamental base and by
leveraging green and low-carbon development structural optimization and digital intelligence as key drivers these policies aim to
achieve a substantive qualitative improvement and reasonable quantitative growth within the iron and steel industry thereby
supporting the stable operation and high-quality development of the national economy.III. Core Competence Analysis
The company adheres to an innovation-driven approach and a "premium + service" development model with strategic goals to build
an internationally competitive premium steel plate base a leading domestic special steel base and a comprehensive service provider.By playing a leading role in strategy the company focuses on quality improvement efficiency enhancement product upgrades
technological innovation and green and smart manufacturing. These efforts aim to innovate business management strategies
enhance core competitiveness and drive high-quality green and smart development.
1. Production and Manufacturing Capacity: The company remains steadfast in its focus on stability and quality implementing the
"Eight Major Efficiency" indicators to systematically enhance process technology equipment precision and production stability
across all operational stages thereby fostering high-efficiency stable production. First production efficiency has seen continuous
improvement; by deepening coordination between production and sales and advancing lean manufacturing initiatives the company
achieved a significant leap in capacity utilization. Throughout the year it cumulatively broke various production records over 200
times reaching an all-time high. Second technical quality has advanced through the reinforcement of "end-to-end" integrated
management. The company identified and refined 400 key technical know-how items while enhancing technical problem-solving
capabilities based on a "three-dimensional + hierarchical control" framework; consequently quality-related losses per ton of steel
produced continued to decline and product stability improved significantly. Third production costs have seen a sustained reduction.Sales volumes for both pipeline steel and container steel each surpassed the 100000-ton mark while the company's tinplate business
established itself among the nation's top-tier suppliers. Sales to major automotive OEMs—such as BYD and Mercedes-Benz Heavy
Duty Trucks—grew by 4% while sales to leading home appliance manufacturers— such as Midea and Gree— surged by 27%.Overall the annual sales volume for automotive steel reached an all-time record high.
2. Equipment Transformation and Upgrading: The Company has embarked on a new round of large-scale technical upgrades and
environmental retrofits exemplified by projects such as the ultra-low emission upgrade for the Ironmaking Plant’s coke oven system;
VOC collection and material transport in the Ironmaking Plant’s chemical products area; the separation of rainwater and wastewater
in the Ironmaking Plant’ s coking process; and the quality and efficiency enhancement upgrade for the 2300 Line at the Hot
Continuous Rolling Plant. The projects for the ultra-low emission upgrade of the Ironmaking Plant’s coke oven system and for VOC
collection and material transport in the chemical products area have already commenced operations. Meanwhile the project for the
separation of rainwater and wastewater in the Ironmaking Plant’ s coking process and the quality and efficiency enhancement
11Bengang Steel Plates Co. Ltd. Annual Report 2025
upgrade for the 2300 Line at the Hot Continuous Rolling Plant are currently underway.
3. New Product Development Capability: The company completed the development of 40 new products and secured orders totaling
320000 tons. R&D for high-end products achieved milestone progress marked by the global debut of two steel grades—PHS1500A
and PHS1500P (ultra-high-strength rare-earth-enhanced hot-stamped corrosion-resistant steels for PV mounting systems)—and one
proprietary technology: the "Low-Carbon Optimization Technology for Appliance Steel Production." The company successfully
developed an ultra-thin wide-format 2.2 GPa high-strength hot-stamped steel providing robust support for product upgrades across
downstream industrial chains. Leveraging nano-precipitation technology the company developed B780NP steel for new-energy
commercial vehicles thereby filling a significant gap in the market. Furthermore it successfully developed a series of steels for
hydrogen transmission pipelines that demonstrate exceptional performance in pure hydrogen environments effectively meeting the
stringent requirements of high-pressure pure hydrogen pipelines. By fostering a new ecosystem for the green economy the company
has achieved comprehensive coverage across its cold-rolled product portfolio with its low-carbon automotive steel solutions.
4. Technological Innovation Capability: The company has strengthened industry-academia collaboration by signing four external
technical cooperation projects with Northeastern University and the University of Science and Technology Beijing thereby
facilitating the transfer of mature technological achievements from universities and research institutes to the corporate sector.Regarding standardization the company led the completion of two national standards participated in the completion of 11 national
standards led the completion of one industry standard participated in the completion of three industry standards and participated in
the completion of seven group standards. In terms of intellectual property 292 patent applications were accepted— including 13
overseas applications—and 159 patents were granted 79 of which were invention patents. Regarding technological achievements the
company received seven Science and Technology Progress Awards at or above the provincial/ministerial level. Notably the project
"R&D and Application of Key Technologies for High-Performance Hydraulic Taphole Drills" won the First Prize in the Invention
and Entrepreneurship Award presented by the China Association of Inventions; the study "Research on Controlling Fatigue Failure of
Backup Rolls in the 1700 Rolling Line" won the Gold Medal at the 11th International Exhibition of Inventions; and the projects
"Development of the World's First Coating-Free Hot-Forming Steel and Its Application in FAW Hongqi Models" and "Key
Technologies for Hot Rolling Processes of Wide Thin-Gauge High-Strength Automotive Structural Steel" won the First and Second
Prizes respectively at the "Spark" Innovation and Creativity Competition for State-Owned Enterprises in the "Three Provinces and
One Region" of Northeast China (Liaoning Division). Additionally the project "Key Technologies and Applications for
High-Precision Characterization of Crash Performance and Collaborative Digital Optimization for Lightweighting of Automotive
Steel" won the Third Prize from the Society of Automotive Engineers of China; "Efficient Production and Key Technology
Integration for Cold-Rolled Hot-Dip Galvanized Outer Panels" won the Third Prize for Science and Technology Progress in Liaoning
Province; and "A Production Method for Hot-Stamping Steel with Controlled Oxide Scale Shedding via a Coating-Free Process" won
an Excellence Award at the China Patent Awards.
5. Green Development Capability: The company has focused its efforts on a wide range of initiatives including the application for
provincial-level "Green Factory" status; the formulation of a "Dual Carbon" management action plan for the Plate Division; the
development of a low-carbon development plan for the 15th Five-Year Plan period; the pilot production of "green steel" products and
the certification of low-emission steel products; the collection and reporting of greenhouse gas emission accounting data; the
implementation of a "Carbon Steward" project; and the delegation of carbon trading responsibilities to Angang Group Capital
Holding Co. Ltd. Furthermore the company continues to advance trials for low-emission products utilizing the semi-steel production
process aiming to achieve an overall reduction in carbon emissions of 30–50%.
6. Intelligent Manufacturing Capability: In 2025 the company invested in and undertook the construction of various intelligent
projects including a smart factory for the "Three Cold Areas" Phase II of the end-to-end quality data management platform and the
adaptation and localization of the sheet metal information system. Guided by a "Smart Index" framework and supported by the digital
transformation of operational processes the company successfully implemented its smart manufacturing initiatives. Driven by
innovation in digital and intelligent technologies the rate of data assetization reached 92%. Furthermore 26 robotic units were
deployed to automate "3D" (Dangerous Dirty and Dull) tasks— such as blast furnace inspections temperature measurement and
sampling and slag removal—resulting in a 32% increase in the human-to-robot substitution rate. With a Smart Index score of 82.67
— marking a 19.36% improvement — the company advanced from the "Integrated" level to the "Optimized" level thereby
accelerating the pace of smart manufacturing within its sheet metal operations. Consequently the company was recognized by the
Ministry of Industry and Information Technology (MIIT) as a "2025 Excellence-Level Smart Factory" by the Liaoning Provincial
Department of Industry and Information Technology as a "2025 Liaoning Advanced-Level Smart Factory" and by the 10th Smart
Steel Technology and Equipment Development Conference as a "Smart Steel Demonstration Unit".IV. Main Business Analysis
1. Overview
In 2025 the Company focused on the intensive development of its profit centers consolidating its "Lean + Dual Foundations"
strategy and actively practicing "calculated management." Through united effort and a determination to break through existing
constraints we employed extraordinary measures to address shortcomings and optimize our structural layout. By actively and
effectively responding to external challenges characterized by strong supply and weak demand the Company achieved an annual
output of 9.59 million tons of pig iron 10.03 million tons of crude steel and 13.64 million tons of commercial steel products. A
review of the year's work highlights the following key achievements:
1. By maintaining a sustained focus on strengthening grassroots operations and foundational infrastructure operational efficiency has
improved significantly. Production efficacy has seen continuous enhancement; through deepened coordination between production
12Bengang Steel Plates Co. Ltd. Annual Report 2025
and sales and the advancement of lean manufacturing practices capacity efficiency has achieved a remarkable leap forward.Throughout the year a cumulative total of 276 production records across various categories were broken—setting a new historical
high. Progress has also been made in technology and quality; by reinforcing "end-to-end" integrated management continuously
optimizing alloy designs and intensively developing high-speed production techniques for high-strength steel— as well as stable
rolling technologies for ultra-high-strength steel— the "Bengang Wide-Width" brand was successfully selected for inclusion in the
second batch of recognized achievements under the State-owned Assets Supervision and Administration Commission (SASAC) of
the State Council's "Central Enterprise Brand Leadership Initiative." Furthermore equipment assurance capabilities have been further
bolstered through the strengthening of equipment assessment functional precision control and full lifecycle management alongside
the coordinated execution of joint maintenance operations.
2. By establishing a robust cost-accounting and operational mechanism the Company has achieved a gradual improvement in
business efficiency. Marketing efforts have undergone continuous optimization with a strategic focus on deepening adjustments
across three key dimensions: product lines distribution flows and sales channels. Concurrently the Company optimized its product
mix and pricing strategies driving a fundamental shift in its business model from merely pursuing "order volume growth" to
prioritizing "structural upgrading." The Company established specialized task forces to fully leverage the synergistic advantages of
its integrated "Sales-R&D-Production-Finance" operations; as a result sales volume for core products reached 3.94 million tons.Regarding customer acquisition the Company intensified its efforts to develop high-quality new clients; sales volumes for pipeline
steel and container steel each surpassed the 100000-ton mark while its tinplate products successfully secured a position among the
ranks of top-tier domestic suppliers. Production cost control yielded significant results; by establishing a comprehensive end-to-end
benchmarking management system the Company focused its efforts on tackling the challenge of reducing pig iron production costs.Through the optimization of coal and ore blending structures—which stabilized blast furnace operations and enhanced material
utilization efficiency—pig iron production costs were maintained below the industry average while steelmaking and rolling cost
indicators also saw substantial improvement. Centered on the core objective of boosting efficiency and reducing consumption the
Company made solid progress in selling accumulated sludge and dust-collection ash thereby optimizing resource recycling.Simultaneously initiatives involving the substitution of packaging materials and the implementation of comprehensive outsourcing
contracts were undertaken providing efficient pathways for expanding diversified profit-generation channels and continuously
driving down operating costs. Furthermore the Company strengthened its inventory turnover management; the capital tied up in "two
funds" (accounts receivable and inventory) decreased by RMB 783 million compared to the beginning of the year bringing inventory
capital levels in line with industry averages. In terms of industrial chain layout the Company actively advanced initiatives to fill gaps
and strengthen links within the chain; the Liaoning Shengyuda Steel Structure Project was successfully established within the
Hengda Industrial Park creating a new win-win scenario characterized by "increased corporate profits enhanced park efficiency and
benefits for the local community." Regarding financial and tax management the Company prudently implemented tax-saving and
profit-generating strategies capitalizing on preferential policies to realize benefits totaling RMB 128 million; moreover by
accurately interpreting national policy directives the Company successfully secured government policy funding amounting to RMB
115 million.
3. The company has intensified its efforts in technological innovation and efficiency enhancement continuously bolstering its
competitive advantages. Significant breakthroughs have been achieved in high-end product development. Building upon
improvements in equipment functionality and precision the steelmaking sector has focused on quality enhancement and efficiency
gains; the hot rolling sector has pushed the boundaries of extreme-specification production; and the cold rolling sector has deepened
its focus on product premiumization thereby systematically boosting production capabilities for high value-added products.Throughout the year key products generated efficiency gains totaling RMB 213 million while revenue from strategic emerging
products exceeded the baseline target by RMB 1236 million. Intelligent upgrading initiatives have yielded fresh results. The
company has accelerated the construction of a "Digital Angang" driving forward industrial digitalization and the realization of data
value. The Plate Division successfully obtained "3A" certification for its integration of industrialization and informatization systems
earning recognition as a national-level "2025 Excellence-Grade Intelligent Factory" and a provincial-level "Liaoning
Advanced-Grade Intelligent Factory." Additionally units such as the Quality Inspection and Metrology Center and the Ironmaking
Plant were designated as demonstration units for innovative application scenarios and "Smart Steel" initiatives. Green development
strategies have achieved tangible results. Guided by the "Dual Carbon" strategy and focusing on the core processes of "coking
sintering ironmaking steelmaking and rolling" the company has strengthened management refined processes and optimized its
energy structure. Consequently it became the first entity in the steel industry in 2025 to successfully pass the on-site acceptance
review for the "Dual Carbon Best Practice: Energy Efficiency Benchmark Demonstration" project. The company also initiated pilot
production trials for low-carbon emission-reduced automotive steel; by increasing the scrap ratio from 39% to 79.85% it achieved
carbon emission reductions of up to 50.28% realized full coverage across all cold-rolled product categories and secured a "green
premium." Furthermore the company is actively pursuing "Green Steel" certification with major automotive OEMs—such as BMW
and Toyota— while simultaneously promoting its green low-carbon product portfolio thereby comprehensively solidifying its
competitive advantages in low-carbon development.
4. Through the deepening of management system reforms the company’ s organizational effectiveness has been significantly
enhanced. The implementation of the new accountability system has yielded remarkable results. Guided by market-oriented
principles the company has established an operational framework centered on value creation driving a transformation of the
accountability system toward a profit-centric focus. Incentive mechanisms have been further refined through the restructuring of the
"Individual Performance Scorecard" annual evaluation system and the optimization of the "Red and Blue List" assessment cycles;
these efforts have achieved significant breakthroughs in the transition to a profit-centered performance management model. The
deepening of reforms has injected new momentum into the organization; by maintaining sustained efforts in state-owned enterprise
reform and specialized integration the company successfully reduced its number of legal entities by one. Progress on the handover of
water utility systems is proceeding steadily; the "Integrated Personnel and Production Chain" reform at the Cold Rolling Plant has
emerged as a benchmark model within the Ansteel Group; and Benxi Posco has been consecutively recognized by the State-owned
13Bengang Steel Plates Co. Ltd. Annual Report 2025
Assets Supervision and Administration Commission (SASAC) of the State Council as a "Double Hundred Enterprise" benchmark.The Special Steel Division has advanced its cooperative model with Linggang Steel—specifically regarding material processing on
behalf of a client—and has actively explored strategies to mitigate and control financial losses. Furthermore with the objective of
enhancing efficiency the company has deepened its "Three Systems" reform resulting in a 14.15% increase in physical labor
productivity.
2. Operating Revenue and Operating Cost
(1) Breakdown of Operating Revenue
Unit：RMB
2025 2024 Change over
Amount Proportion Amount Proportion last year
Total operating
46392250494.48100%51266361501.22100%-9.51%
revenue
By industries
Industry 46392250494.48 100.00% 51266361501.22 100.00% -9.51%
By product
Steel plate 45189113153.31 97.41% 50063324955.34 97.65% -9.74%
Others 1203137341.17 2.59% 1203036545.88 2.35% 0.01%
By region
Domestic 37098713832.08 79.97% 42160555732.72 82.24% -12.01%
International 9293536662.40 20.03% 9105805768.50 17.76% 2.06%
By sales model
Direct selling 30081663332.86 64.84% 30551325723.59 59.59% -1.54%
Distribution 16310587161.62 35.16% 20715035777.63 40.41% -21.26%
(2) Industries products regions or sales models accounting for more than 10% of the company's revenue
or operating profit
□Applicable □Not applicable
Unit：RMB
Operating Operating Gross
Operating Operating costs Gross income costs change marginrevenue margin change over over last change over
last year year last year
By industries
Industry 46392250494.48 48441024611.38 -4.42% -9.51% -11.43% 2.27%
By product
Steel plate 45189113153.31 47250414985.73 -4.56% -9.74% -11.64% 2.26%
Others 1203137341.17 1190609625.65 1.04% 0.01% -2.10% 2.13%
By region
Domestic 37098713832.08 38573587898.04 -3.98% -12.01% -14.84% 3.46%
International 9293536662.40 9867436713.34 -6.18% 2.06% 5.00% -2.97%
By sales model
Direct selling 30081663332.86 31315899069.17 -4.10% -1.54% -3.63% 2.26%
Distribution 16310587161.62 17125125542.21 -4.99% -21.26% -22.85% 2.16%
In the case where the statistical scope of the company's main business data has been adjusted during the reporting period the
company's main business data for the most recent year adjusted according to the reporting period's scope.□Applicable □Not applicable
14Bengang Steel Plates Co. Ltd. Annual Report 2025
(3) Whether the company's physical sales revenue is greater than service revenue
□Yes □No
Industry Change over
classification Item Unit 2025 2024 last year
Steel rolling Sales volume ton 13710113.83 14138570.54 -3.03%
processing Production volume ton 13643486.70 14118898.30 -3.37%
industry Inventory volume ton 310989.31 389800.00 -20.22%
Explanation of the reasons for a year-on-year change of more than 30%
□Applicable □Not applicable
(4) The performance of major sales contracts and major procurement contracts signed by the company as
of the end of this report period
□Applicable □Not applicable
(5) Breakdown of Operating Cost
Products classification
Unit：RMB
2025 2024 Change
Industry
classification Item over lastAmount Proportion Amount Proportion year
Steel rolling
processing Rawmaterial 25838219184.07 53.34% 28457161665.87 52.03% 1.31%
industry
Steel rolling Supplement
processing ary 1928902919.99 3.98% 2417464050.80 4.42% -0.44%
industry materials
Steel rolling
processing Spare partsand tools 427347800.06 0.88% 661794457.35 1.21% -0.33%
industry
Steel rolling
processing Fuel 13961313622.33 28.82% 17283227150.52 31.60% -2.78%
industry
Steel rolling
processing Energy 2579048972.41 5.32% 2357300918.31 4.31% 1.01%
industry
Steel rolling
processing Salary andbenefits 1616548552.59 3.34% 1422037676.94 2.60% 0.74%
industry
Steel rolling
processing Depreciation 1605357240.77 3.31% 1635343328.48 2.99% 0.32%
industry
Steel rolling
processing Others 484286319.16 1.00% 459427557.17 0.84% 0.16%
industry
Steel rolling
processing Total 48441024611.38 100.00% 54693756805.43 100.00% 0.00%
industry
15Bengang Steel Plates Co. Ltd. Annual Report 2025
(6) Whether there were any changes in the consolidation scope during the reporting period
□Yes □No
In March 2025 the Company convened the 34th Meeting of its Ninth Board of Directors during which it reviewed and approved the
“Proposal on Jointly Investing with an Affiliate to Establish a Controlled Subsidiary”. Pursuant to this resolution the Company
agreed to jointly contribute RMB 60 million— together with its affiliate Angang Green Gold Industry Development Co. Ltd.— to
establish Green Gold (Benxi) Renewable Resources Co. Ltd. Specifically the Company will contribute RMB 30.60 million from its
own funds thereby holding a 51% equity stake in the joint venture while Angang Green Gold Industry Development Co. Ltd. will
contribute RMB 29.40 million from its own funds holding a 49% equity stake. Upon the completion of this joint investment the
joint venture will be consolidated into the Company's financial statements as a controlled subsidiary. The requisite business
registration formalities were successfully completed on April 9 2025.
(7) Significant changes or adjustments in the Company’s business products or services during the
reporting period
□Applicable □Not applicable
(8) Information of Main Customers and Main Suppliers
Information of Main Customers
Total sales amount of the top five customers (Yuan) 9309744060.46
Total sales amount of the top five customers accounted for the proportion of total annual sales 20.07%
The proportion of the total sales of the related parties in the top five customers 6.51%
Information of the top 5 customers
No Name Amount (Yuan) Proportion
Delin Inland Port Supply Chain
13018807232.236.51%
Services Co. Ltd.Haining Tengchuang New Materials
21843697202.093.97%
Technology Co. Ltd.Anshan Shenlong Tengda Industry &
31715163571.383.70%
Trade Co. Ltd.
4 Xiamen C&D Metal Co. Ltd. 1512243270.04 3.26%
Shanghai Huaqi Steel Supply Chain
51219832784.722.63%
Co. Ltd.Total -- 9309744060.46 20.07%
Other information of principal customers
□Applicable □Not applicable
Information of the Company’s main suppliers
Total purchase amount of the top five suppliers (Yuan) 24134103555.48
Total purchase amount of the top five suppliers accounted for
the proportion of total purchase 49.93%
The proportion of the total purchase of the related parties in the
top five suppliers 40.56%
Information of the top 5 suppliers
No. Name Amount (Yuan) Proportion
Benxi Beiying Steel & Iron
113428325290.6727.78%
(Group) Co. Ltd.Benxi Steel & Iron (Group)
24221318429.358.73%
Mining Co. Ltd.
16Bengang Steel Plates Co. Ltd. Annual Report 2025
Liaoning Electric Power Co.
3 Ltd. Benxi Electric Power 3155866088.46 6.53%
Supply Company
Benxi Steel (Group) Mining
4 Liaoyang Ma'erling Pellet 1955304447.95 4.05%
Co. Ltd.Heilongjiang Dragon Coal
51373289299.052.84%
Group Co. Ltd.Total -- 24134103555.48 49.93%
Other information of principal suppliers
□Applicable □Not applicable
During the reporting period revenue from the Company's trading business accounted for more than 10% of its operating revenue.□Applicable □Not applicable
3. Expense
Unit：RMB
2025 2024 Change over Notes tolast year significant change
Selling and distribution
136838793.14142638617.77-4.07%
expenses
General and
administrative 672219542.49 702788411.83 -4.35%
expenses
Primarily
attributable to the
Financial Expenses 428002130.04 240331316.82 78.09%
impact of
exchange losses.Research and
90978954.1686415509.295.28%
Development Expenses
4. Research and Development Input
?Applicable □Not applicable
Name of Project Project Objective Project Progress Expected Target Expected Impact
Based on the research All research has Research was This project
of 25 types of been successfully conducted on the enables the
complex coking coal completed. high-temperature development of
quality characteristics Through an bonding optimized coal
used by Bensteel the investigation into characteristics of 25 blending control
Development and aim is to establish the the relationship types of complex technologies
Application of Coal relationship between between the caking coking coals used in based on the
Blending Structure the expansion and properties of production expansion
Optimization and rheological coking coal and the alongside studies on properties of coal
Control Technology characteristics of quality of coke the the limits of coking elucidating the
Based on Associated coking coal and its specific patterns by coal utilization. principles
Coal Quality coking ability. The which the coking This initiative governing the
Expansion goal is to identify how coals commonly provides technical compatibility and
changes in the utilized by support for the quality impact of
inherent expansion Bensteel influence optimized blending coking coals. It
and rheological coke quality have and structural thereby provides a
characteristics of been identified regulation of scientific basis for
coking coal impact thereby providing a lower-cost coals coal blend
17Bengang Steel Plates Co. Ltd. Annual Report 2025
key indicators such as crucial theoretical the development of adjustments and
coke CSR. foundation for new coal resources the determination
addressing and the control of of extreme
fluctuations in coke size blending limits.coking coal uniformity. The resulting
quality. Through Furthermore the achievements
the research coal blending serve to stabilize
conducted under structure was coke quality
this project— optimized— optimize coal
combined with its yielding 4 to 6 blending
practical distinct structures and
application in optimization enhance resource
production—the schemes—resulting utilization
coal blending in a cost reduction efficiency leading
structure was of 2 RMB per ton of to significant cost
continuously coke produced and reductions and
optimized achieving an annual efficiency gains
resulting in a reduction in coal and offering
reduction of over blending costs robust support for
2.0% in the exceeding 7 million the high-quality
proportion of RMB. sustainable
coking and fat development of
coals used in the enterprises.blend.Compatibility tests The company is
were conducted on poised to
hydrogen overcome
Through laboratory transmission bottlenecks
1. Establish a
prototype design and pipeline materials regarding critical
complete
industrial production to systematically materials for
production process
studies on L245– investigate how hydrogen storage
and technology for
L360 grade pipeline hydrogen partial and transport
L360MH pipeline
steels for pure pressure—as well capture a leading
steel for pure
hydrogen transport as metallurgical share of the
hydrogen transport
the R&D and defects such as high-end energy
and complete
industrial trial segregation steel market and
industrial-scale trial
production of pure banding and enhance both its
production; 2.hydrogen pipeline inclusions— product
Ensure that the
Research and steels have been influences value-added and
mechanical
Development of successfully susceptibility to core
properties of the
Hot-Rolled Coil Series completed. The hydrogen competitiveness.product meet the
for Pure Hydrogen in-service embrittlement. This This initiative will
requirements of
Transport Pipelines performance of these research facilitate the
national standards
steels for hydrogen established the company's
or technical
transport has been optimal integration into
specifications; 3.verified and evaluated pressure-to-steel-gr the national
Achieve a slow
by a third party ade matching hydrogen energy
strain rate hydrogen
confirming that the relationships for strategic value
embrittlement
product performance high-throughput chain drive
sensitivity index of
meets the hydrogen technological
≤ 30% and a
requirements of transmission upgrading and
fracture toughness
national standards or pipelines and green
of ≥ 55 MPa·m1
technical identified key transformation
/2.specifications. control measures to cultivate new
mitigate growth drivers for
hydrogen-induced high-quality
damage in steel development and
18Bengang Steel Plates Co. Ltd. Annual Report 2025
materials. A plan bolster its
was formulated for long-term
the industrial-scale profitability and
trial production of industry
pipeline steels influence.(grades L245
through L360)
intended for pure
hydrogen transport;
the industrial trial
production of
hot-rolled coils was
successfully
completed with all
mechanical
properties meeting
design
specifications.Subsequently trial
manufacturing of
pipes using these
hot-rolled coils for
hydrogen
transmission
applications was
initiated.The combined
process route—
Guided by the
integrating molten
national "Dual
iron from
Carbon" policy
traditional blast The company has
and the Group's
furnaces with successfully
medium-to-long-t
molten steel implemented a
The company has erm "Dual
produced entirely production process
successfully Carbon" plan the
from scrap in route—combining
completed the Company focuses
electric arc special steel electric
development of on efficient
furnaces—has been arc furnaces with
cold-rolled high-quality
successfully plate-making steel
low-emission intelligent and
established. To converters—to
automotive steel green
date 15 trials manufacture
Bensteel Research on utilizing a combined manufacturing.(comprising 29 low-carbon
the Production Process process route We are breaking
heats) for automotive steel
of Low-Carbon involving traditional through key core
low-carbon products. When
Automotive Steel blast furnace hot metal technologies for
emission steel coupled with the
and electric arc low-carbon
production have use of green
furnace all-scrap emissions driving
been conducted electricity this
steelmaking; both the the R&D of
achieving approach achieves a
chemical composition superior
comprehensive 30% reduction in
and mechanical low-carbon
coverage of carbon emissions
properties meet the products and
automotive steel compared to
product requirements. accelerating the
grades—including products produced
cultivation of core
cold-rolled via traditional
technological
low-carbon processes.competitiveness in
cold-rolled
low-carbon
ultra-low-carbon
emissions.electro-galvanized
and hot-dip
19Bengang Steel Plates Co. Ltd. Annual Report 2025
galvanized
products. Both
chemical
composition and
performance
metrics fully meet
process standards
and select grades
have already
obtained
certification from
major automotive
manufacturers.Grounded in the
Theoretical
"Dual Carbon"
research regarding
strategy and the
the occurrence
imperatives of
states of rare earth
green low-carbon
elements in
development the
hot-formed steel
In response to the company has
has been
demands of building a optimized its Upon completion
completed. Based
green low-carbon compositional this project will
on thermodynamic
and design—building comprehensively
analyses the
resource-conserving upon its existing enhance the
behavioral patterns
society—and by 1500 MPa-class quality of
of stable inclusions
overcoming the hot-stamping steel. hot-formed steel
were elucidated;
challenge of A key focus has products and
furthermore it was
atmospheric corrosion been the boost the
established that
in steel—this initiative introduction of rare company's
when the total
serves to replace earth elements to competitiveness in
oxygen (T.O)
high-cost coating and investigate their this sector.content in the steel
traditional alloying mechanistic Furthermore it
is low cerium can
solutions. It extends influence on the will facilitate the
fully exert its
Development of 1500 material service life corrosion resistance accumulation of
microalloying
MPa-Class reduces production of hot-formed steel. relevant
effects.Corrosion-Resistant and maintenance This initiative aims production
Comprehensive
Hot-Stamped Steel costs and expands the to resolve the issues experience—
testing and analysis
application of associated with particularly
—including
rare-earth-enhanced traditional regarding
assessments of
corrosion-resistant anti-corrosion theoretical
corrosion
hot-formed steel into methods— research on
resistance
sectors such as specifically their composition
oxidation
photovoltaic mounting high costs adjustment and
resistance and
systems. Ultimately significant process design—
high-speed tensile
this enhances product environmental thereby laying a
properties—have
competitiveness and impact and limited solid foundation
also been
market demand service life—and to for the company's
successfully
thereby facilitating the develop development of
concluded. All
high-end and green corrosion-resistant higher-grade
performance
development of hot-formed steel hot-formed steels.metrics meet the
enterprises. products tailored for
established design
use in photovoltaic
objectives. The
mounting structures.related products
By achieving a
have since
harmonious balance
achieved a global
between ultra-high
debut.strength
20Bengang Steel Plates Co. Ltd. Annual Report 2025
lightweight design
and long-term
corrosion resistance
the company is
enriching its
portfolio of
hot-stamping steel
products and
driving the practical
engineering
application of its
scientific research
achievements.The company has
established a
Focusing on the
digitized
fierce competition
continuous casting
and evolving
system to drive
environmental
the intelligent and
compliance
eco-friendly
requirements within
Completed the upgrading of
the steel industry
design of the local steelmaking
the company
database structure processes. This
leverages the
Promote the and collected initiative
development of
end-to-end digital historical data— effectively
digital continuous
transformation of spanning the past 1 resolves the
casting systems as a
steelmaking processes –2 years—for persistent
strategic vehicle. By
to enhance the both challenge of
harnessing
stability of continuous high-frequency and defect inheritance
technologies such as
casting operations and low-frequency in cast slabs
industrial big data
product yield; mitigate parameters. thereby
machine learning
Research on a quality downgrade Performed data significantly
numerical
Multi-Objective losses resulting from cleaning enhancing product
simulation and
Data-Driven Intelligent defects such as imputation and quality and
system integration
Optimization Model longitudinal cracks transformation production
it has established an
for Slab Surface and inclusions; operations to stability. By
intelligent system
Longitudinal Cracks achieve cost ensure data quality minimizing losses
for the analysis and
and Mold Level reduction efficiency and consistency. associated with
prediction of
Fluctuations gains and green Executed the product
continuous casting
production; bolster the functional design downgrading and
billet quality. This
enterprise's core system enabling the
system enables the
competitiveness; and development and replicability and
precise prediction of
provide intelligent on-site deployment scalability of
billet defects and
technical support for of an online data technical
multi-objective
the stable production acquisition system solutions the
optimization
of high-end steel enabling the system provides
effectively resolves
plates. real-time core support for
the issue of defect
collection cost reduction
inheritance and
cleaning and efficiency gains
drives the
backup of data. digital
continuous casting
transformation
process toward
and the
high-end
enhancement of
intelligent and
competitiveness in
eco-friendly
high-end plate
production.products—
ultimately
21Bengang Steel Plates Co. Ltd. Annual Report 2025
fostering
long-term
high-quality
development for
the enterprise.Company R&D Personnel Information
2025 2024 Change over last year
Number of R&D Personnel
13371370-2.41%
(persons)
Percentage of R&D Personnel 11.00% 10.43% 0.57%
Educational Structure of R&D Personnel
Bachelor's Degree 981 936 4.81%
Master's Degree 156 142 9.86%
Age Structure of R&D Personnel
Under 30 years old 64 73 -12.33%
30-40 years old 384 354 -8.47%
R&D Investment Overview
2025 2024 Change over last year
R&D Investment Amount (in
1628291516.101595660007.172.05%
RMB)
R&D Investment as a
Percentage of Operating 3.51% 3.11% 0.40%
revenue
Amount of R&D Investment
0.000.00
Capitalized (in RMB)
Capitalized R&D Investment
as a Percentage of Total R&D 0.00% 0.00%
Investment
Reasons for Significant Changes in R&D Personnel Composition and Impact
□Applicable □Not applicable
Reasons for Significant Changes in the Proportion of R&D Investment to Operating Income Compared to the Previous Year
□Applicable □Not applicable
Reasons for the Significant Change in Capitalization Rate of R&D Investment and Explanation of Its Reasonableness
□Applicable □Not applicable
5. Cash Flow
Unit：RMB
Change over last
Item 2025 2024
year
Subtotal of cash inflows from operating activities 50319108095.66 56354930509.54 -10.71%
Subtotal of cash outflows from operating
activities 52107924863.46 55254642515.29 -5.69%
Net cash flows from operating activities -1788816767.80 1100287994.25 -262.58%
Subtotal of cash inflows from investing activities 87183020.00 137069554.37 -36.40%
Subtotal of cash outflows paid for investing 2275737062.01 975204696.55 133.36%
22Bengang Steel Plates Co. Ltd. Annual Report 2025
activities
Net cash flows from investing activities -2188554042.01 -838135142.18 -161.12%
Subtotal of cash inflows from financing activities 10406721508.74 7573123889.76 37.42%
Subtotal of cash outflows from financing
activities 7737481667.66 7497684459.06 3.20%
Net cash flows from financing activities 2669239841.08 75439430.70 3438.26%
Net increase in cash and cash equivalents -1302734912.60 390519810.53 -433.59%
Explanation of Major Impact Factors for Significant Year-on-Year Changes
□Applicable □Not applicable
(1) The net cash flow from operating activities decreased by 262.58% compared to the previous period primarily due to a
year-on-year decline in revenue which resulted in a reduction in cash receipts from sales and bill discounting during the current
period.
(2) The subtotal of cash inflows from investing activities decreased by 36.40% compared to the previous period primarily due to a
decrease in the cash balance recovered during the current period from prior asset disposals.
(3) The subtotal of cash outflows from investing activities increased by 133.36% compared to the previous period primarily due to
an increase in cash payments for the acquisition and construction of long-term assets as well as for the settlement of
investment-related bills during the current period.
(4) The net cash flow from investing activities decreased by 161.12% compared to the previous period primarily due to a decrease in
cash proceeds from the disposal of assets from prior periods and an increase in cash outflows for the acquisition and construction of
long-term assets during the current period.
(5) The subtotal of cash inflows from financing activities increased by 37.42% compared to the previous period primarily
attributable to factors such as an increase in bank borrowings obtained during the current period.
(6) The net cash flow from financing activities increased by 3438.26% compared to the previous period primarily due to factors
such as an increase in bank borrowings obtained during the current period.
(7) The net increase in cash and cash equivalents decreased by 433.59% compared to the previous period primarily due to a
year-on-year decline in revenue—which resulted in a reduction in cash receipts from sales and bill discounting during the current
period—as well as an increase in cash outflows for the acquisition and construction of long-term assets.Explanation of the significant difference between the net cash flow generated from operating activities and the net profit for the
reporting period.□Applicable □Not applicable
Item Current Year Amount
Adjust Net Profit to Operating Cash Flow:
Net Profit -3855414983.85
Add: Asset Impairment Loss 303933278.79
Credit Impairment Loss 19654328.59
Depreciation of Fixed Assets Depletion of Oil and Gas Assets Depreciation of
Productive Biological Assets 1680747982.09
Amortization of Right-of-Use Assets 93918689.87
Amortization of Intangible Assets 11121055.91
Amortization of Long-term Deferred Expenses
Loss on Disposal of Fixed Assets Intangible Assets and Other Long-term Assets
(gain indicated by “-”) -3008.85
Loss on Fixed Asset Retirement (gain indicated by “-”) 44761956.51
Fair Value Change Loss (gain indicated by “-”)
Financial Expenses (gain indicated by “-”) 449477152.51
Investment Loss (gain indicated by “-”) 10956792.93
Decrease in Deferred Income Tax Assets (increase indicated by “-”) -137604637.55
Increase in Deferred Income Tax Liabilities (decrease indicated by “-”) 138184452.56
Decrease in Inventory (increase indicated by “-”) 677000599.26
Decrease in Operating Receivables (increase indicated by “-”) -534373914.57
Increase in Operating Payables (decrease indicated by “-”) -691248364.58
Others 71852.58
23Bengang Steel Plates Co. Ltd. Annual Report 2025
Net Cash Flow from Operating Activities -1788816767.80
V. Analysis of Non-core Business
□Applicable □Not applicable
Unit：RMB
Amount Proportion in Whethertotal profit Explanation of cause sustainable
Primarily consist of gains
from government subsidies
Other income 164261547.31 -4.33% No
and benefits derived from tax
policies.Primarily consist of gains
from debt restructuring gains
from the discounting of bank
Investment income (losses
-10956792.93 0.29% acceptance bills and losses No
are marked with a "-")
on long-term equity
investments accounted for
under the equity method.Impairment provision
Credit impairment loss
-19654328.59 0.52% recognized for accounts No
(losses are marked with a "-")
receivable.Asset impairment loss (losses Provision for Inventory
-303933278.79 8.02% No
are marked with a "-") impairment losses.Gains on Disposal of Assets Gains on the disposal of fixed
3008.85 0.00% No
(losses are marked with a "-") assets.primarily consists of gains
from the disposal of
non-current assets income
Non-operating income 23612863.00 -0.62% No
from compensation for
construction contract
breaches etc.Mainly for the losses from the
Non-operating expenses 63205937.35 -1.67% No
disposal of non-current assets.VI. Assets and Liabilities
1. Significant Change of Assets Components
Unit：RMB
Ending balance of 2025 Beginning balance of 2025 Proporti Notes tosignifica
Amount Proportion in Proportion in
on nt
the total assets Amount the total assets change change
Cash and cash
1127390675.152.46%2453888470.485.36%-2.90%
equivalents
Accounts
receivable 1178780456.77 2.58% 501484081.73 1.09% 1.49%
Contract assets
Inventories 6369194886.12 13.92% 7333084694.27 16.01% -2.09%
Long-term 43269884.04 0.09% 45413221.72 0.10% -0.01%
24Bengang Steel Plates Co. Ltd. Annual Report 2025
equity
investment
Fixed assets 26426320453.528412673622.89 62.08% 57.68% 4.40%
7
Construction in
process 3074712066.38 6.72% 3934442501.50 8.59% -1.87%
Right of use
2607155393.905.70%1685925710.143.68%2.02%
assets
Short-term
333660470.120.73%371055490.500.81%-0.08%
loans
Contract
2736697947.255.98%2908598425.736.35%-0.37%
liabilities
Long-term
6014469758.1113.14%2891941462.406.31%6.83%
loans
Lease liabilities 2239436105.64 4.89% 1633911586.51 3.57% 1.32%
Overseas assets account for a relatively high proportion.□Applicable □Not applicable
2. Assets and Liabilities Measured at Fair Value
□Applicable □Not applicable
Unit：RMB
Profit and
loss from Accumulated Impairme Amount Amount
Item Beginning
changes in fair value nt accrued purchas
balance fair value changes in the ed in the
sold in the Other Ending
in the recognised in current current current changes balance
current equity period period period
period
Financial assets
Other
equity 933426254 -165618690.2
890420831.77
instruments .63 3
investment
Total 933426254 -165618690.2 890420831.77.633
Financial
liabilities 0.00 0.00 0.00
Other changes
Whether there has been a significant change in the measurement attributes of the company's main assets during the reporting period
□Yes□No
3. Restricted Assets by the End of the Period
Item Ending balance Why asset is restricted
Cash and cash equivalents 839920368.84Bill margin letter of credit margin
Notes receivable 6182721.01Pledged
Accounts receivable 120290859.64Pledged
25Bengang Steel Plates Co. Ltd. Annual Report 2025
VII. Analysis on Main Subsidiaries and Share Participating Companies
1. Overview
□Applicable □Not applicable
2. Significant equity investment obtained during the reporting period
□Applicable □Not applicable
Unit：RMB
In
ve
Whet
st Invest
Progress Exp her Disclo Disclo
m Invest Invest ment
Share Produ as of the ecte invol sure sure
Invest Principal en ment Fundi Partne ment profit
holdin ct balance d ved date index
ee business t amou ng rs durati or loss
g ratio Type sheet reve in (if (if
M nt on for this
date nue litiga any) any)
et period
tion
ho
ds
Licensed
Items:
Road
Freight
Transport
(excludin
g
dangerous
goods);
Road
Freight Anste
Green Transport el
Gold (online Ne Green
(Benx freight); wl Gold
Complet
i) Dismantli y Indust
3060 Equity e Mar. No.20
Rene ng of est 51.00 ry Long 86002
0000. Own invest business 0.00 No 29 25-01
wable scrapped ab % Devel term 30.14
00 ment registrat 2925 1
Resou motor lis opme
ion
rces vehicles. he nt
Co. (For d Co.Ltd. items Ltd.requiring
approval
according
to law
business
activities
may only
be carried
out after
approval
by
26Bengang Steel Plates Co. Ltd. Annual Report 2025
relevant
departme
nts.Specific
business
items are
subject to
the
approval
document
s or
licenses
issued by
relevant
departme
nts.)
General
Items:
Processin
g of
renewable
resources;
Sales of
renewable
resources;
Recycling
of
renewable
resources
(excludin
g
productio
n scrap
metal);
Recycling
of
productio
n scrap
metal;
Processin
g of
non-metal
lic waste
and
debris;
Processin
g of metal
waste and
debris;
Sales of
non-ferro
us metal
alloys;
General
cargo
warehousi
ng
27Bengang Steel Plates Co. Ltd. Annual Report 2025
services
(excludin
g items
requiring
approval
such as
hazardous
chemicals
). (Except
for items
requiring
approval
according
to law
business
activities
may be
carried
out
independe
ntly in
accordanc
e with the
law with
a business
license.)
3060
86002
Total -- -- 0000. -- -- -- -- -- -- 0.00 -- -- --
30.14
00
3. Major non-equity investments ongoing during the reporting period.
□Applicable □Not applicable
4. Financial asset investments
(1) Securities investment
□Applicable□Not applicable
The company did not have any securities investments during the reporting period.
(2) Derivative investment situation
□Applicable□Not applicable
The company did not have any derivative investments during the reporting period.VIII. Significant Assets and Equity Sold
1. Significant Assets Sold
□Applicable □Not applicable
There were no significant asset sold during the reporting period.
28Bengang Steel Plates Co. Ltd. Annual Report 2025
2. Substantial Equity Sold
□Applicable □Not applicable
IX. Analysis of Major Subsidiaries and Affiliates
□Applicable □Not applicable
Details of Major Subsidiaries and Affiliates that Contribute More Than 10% to the Company's Net Profit
Unit：RMB
Company Compan Main Registered Total Net Operating Operating
Name y type business capital assets assets income profit Net Profit
Bengang
POSCO
Cold Subsidia Processing
24591
and sales of 19200000 64393999 730292445 364115325. 313112641.Rolled ries 24796.steel 00 73.99 5.99 14 68Sheet Co. 59
Ltd.Acquisition and Disposal of Subsidiaries During the Reporting Period
□Applicable □Not applicable
The Methods of Acquiring and
Company Name Disposing of Subsidiaries Impact on Overall Production Operations and
During the Reporting Period Performance
Leveraging the advantage of abundant
regional scrap steel resources to expand the
Green Gold (Benxi) Renewable Newly established company's supply channels for scrap steelResources Co. Ltd. raw materials will help reduce procurement
costs enhance the quality of raw materials
and boost the company's profitability.Following the absorption merger of
Changchun Bengang Steel Sales Co. Ltd. by
its wholly owned subsidiary Shenyang
Disposal absorbed and merged Bengang Metallurgical Technology Co. Ltd.Changchun Bengang Steel Sales by the wholly-owned —which resulted in the deregistration of
Co. Ltd. subsidiary Shenyang Bengang Changchun Bengang—the issue ofMetallurgical Technology Co. overlapping positioning and intra-industry
Ltd. competition between the two wholly owned
subsidiaries has been resolved thereby
strengthening the synergy of industrial
development.X. Structured Entities Controlled by the Company
□Applicable □Not applicable
XI. Outlook for the Company's Future Development
(I) Industry Development Trends and the Market Competition Landscape Facing the Company
2026 marks the inaugural year of the "15th Five-Year Plan"— a pivotal year in which the Company will press forward amidst
pressure enhance quality and efficiency and strive to forge a new landscape of high-quality development. Overall the external
environment is becoming increasingly complex and challenging; yet challenges and opportunities coexist as do pressures and
driving forces. Regarding challenges the steel industry’ s cycle of deep structural adjustment continues to evolve and the
supply-demand landscape has undergone a fundamental transformation. A focus on "reduction in quantity for enhancement in
quality" green and low-carbon initiatives and digital-intelligent transformation has emerged as the dominant theme of industry
development; consequently market competition has shifted decisively from a contest of scale expansion to a rivalry centered on
quality efficiency and core competencies. Regarding opportunities the national "15th Five-Year Plan" has been fully launched and
implemented; the effects of a series of macro-policies aimed at stabilizing growth promoting reform and adjusting economic
29Bengang Steel Plates Co. Ltd. Annual Report 2025
structure are accelerating and the fundamental underpinnings of my country's economy—characterized by long-term positive growth
—remain robust. Furthermore Angang Group is accelerating its efforts to build a world-class enterprise deeply advancing industrial
synergy as well as high-end intelligent and green development; this provides both strategic guidance and strong support for the
Company to integrate into the broader national agenda and capitalize on the prevailing momentum. Concurrently the Company’s
own foundational capacity to navigate risks and challenges — and to withstand market fluctuations — has been significantly
strengthened. Through continuous effort and deepened reform since the commencement of the "14th Five-Year Plan" period the
Company has substantially bolstered its core capabilities in areas such as lean management technological innovation and product
upgrading thereby continuously consolidating the endogenous drivers of its high-quality development.(II) General Strategy for Production and Operations
The Company remains guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era; it comprehensively
implements the guiding principles of the 20th National Congress of the CPC and the plenary sessions of the 20th Central Committee
and thoroughly studies and applies the spirit of General Secretary Xi Jinping’s important speeches and his key directives issued on
February 26 and November 6. Furthermore the Company conscientiously implements the spirit of the Central Economic Work
Conference and the important instructions issued by General Secretary Xi Jinping regarding the work of central state-owned
enterprises. Bearing in mind the momentous mission to "make greater contributions to Chinese modernization" the Company aligns
itself closely with the strategic deployment to "forge a united front to tackle five key priorities and drive the realization of three new
beginnings." It fully implements the requirements to "focus on one main thread anchor three forms of development enhance four
core capabilities and achieve five new breakthroughs" and unswervingly carries out the "0115" operational guidelines. By
deepening the integration of "Lean Management + Dual Foundations" the Company continuously consolidates its fundamentals and
upgrades its operations accelerates the strengthening of its foundational capabilities and efficiency gains and strives to ensure a
high-caliber start to the 15th Five-Year Plan period.(III) Operational Plan and Goals
10 million tons of pig iron 10.27 million tons of crude steel and 14.09 million tons of finished steel products—with zero safety or
environmental incidents.To implement the aforementioned overall production and business guidelines and objectives efforts will focus primarily on the
following key areas:
1. Focus on enhancing efficiency and comprehensively deepen results-oriented management and cost control.
2. Strengthen innovation-driven development and accelerate the cultivation of new competitive advantages characterized by
high-end intelligent and green attributes.
3. Deepen the reform drive fully unleashing organizational vitality and endogenous momentum.
4. Firmly uphold the foundational safeguards for development and systematically construct a robust barrier for safety
environmental protection and risk prevention and control.
5. Uphold the strategy of strengthening the enterprise through talent and forge a powerful collective force to jointly build
share and drive development.(IV) Maintaining Current Business and Funding Arrangements for Ongoing Investment Projects
The company will use its own funds and bank loans to meet the funding needs for production operations and technological
transformation.(V) Potential Risks
1. Market and Price Fluctuation Risk
Demand in traditional steel-consuming sectors has fallen short of expectations; intense commoditized competition in standard-grade
materials has driven steel prices into a volatile downward trend placing sustained pressure on gross margins. Furthermore a shortage
of downstream orders has disrupted the production-to-sales pipeline; the product portfolio remains heavily weighted toward
traditional offerings while the certification and volume ramp-up of high-end automotive and appliance steel sheets remain
insufficient resulting in weak earnings resilience.Countermeasures: Adhere to a "production-on-demand" and "lean manufacturing" strategy; align with the industry-wide call to curb
excessive internal competition; prioritize production scheduling based on economic efficiency; and strictly control unproductive
capacity. Furthermore deepen coordination between production and sales establish rapid-response mechanisms shorten delivery
lead times and minimize capital tied up in inventory. Finally focus on high-value-added products— such as premium automotive
steel ultra-wide weather-resistant steel and appliance panels—while expanding manufacturer certifications and scaling up bulk
supply operations.
2. Environmental and Low-Carbon Compliance Risks
30Bengang Steel Plates Co. Ltd. Annual Report 2025
Failure to meet standards in ultra-low emission retrofits and monitoring assessments exposes operations to production restrictions; an
underdeveloped carbon accounting framework— coupled with the EU's CBAM carbon tariffs— increases export costs while a
shortage of carbon allowances constrains production capacity; furthermore the substantial capital investment required for green
retrofits places significant short-term strain on financial resources.Countermeasures: Complete the company's ultra-low emission retrofits and monitoring assessments to ensure full regulatory
compliance and qualify for differentiated production restriction policies; establish a system for carbon accounting reporting and
verification; advance carbon footprint certification efforts; and seek mutual recognition with the EU to mitigate the impact of the
Carbon Border Adjustment Mechanism (CBAM). Furthermore promote energy-saving technologies— such as Combined Cycle
Power Plants (CCPP) and waste pressure/heat recovery systems—while exploring and building reserves of cutting-edge technologies
in hydrogen metallurgy and low-carbon metallurgy. Finally establish "Green Factories" and actively seek environmental protection
subsidies to alleviate the financial burden associated with these green transformation initiatives.
3. Financial and Liquidity Risks
The asset-liability ratio is elevated interest-bearing debt is substantial and short-term debt repayment pressure is acute; net cash flow
from operating activities is volatile the capital chain is strained and there is pressure regarding the redemption of convertible bonds;
the company has incurred consecutive operating losses and financing costs are on the rise.Countermeasures: Optimize the debt structure negotiate with financial institutions for debt extensions and interest rate reductions to
lower financial costs; strengthen centralized cash management and strictly control expenditures to ensure operational continuity and
meet essential payment obligations; accelerate the collection of accounts receivable to enhance capital turnover efficiency and
improve operating cash flow; and prudently advance major asset swaps to replenish capital and reduce the asset-liability ratio.XII. Research visits and interviews received in this reporting period
□Applicable □Not applicable
Main Topics Basic
Reception Discussed and Information
Reception Date Location Visitor Type Visitor
Method Materials Index of the
Provided Research
Investor
Guotai Company's
Relations
On-site Junan-Wei Yudi production and
Feb 12 2025 Benxi Institution Activity Record
research Fullgoal Fund – operational
on Feb 12
Xue Yang status
2025
Tian Feng
Securities-Wan Investor
Company's
g Tao Zhang Relations
On-site production and
Feb 20 2025 Benxi Institution Menghuan Activity Record
research operational
Pacific on Feb 20
status
Securities-Wan 2025
g Qili
Investor
Company's
Southern Asset Relations
production and
Feb 24 2025 Benxi Others Institution Management-Y Activity Record
operational
an Bixing on Feb 24
status
2025
Investor
Company's
Online Relations
Performance production and
Apr 16 2025 Benxi Platform Others Activity Record
Presentation operational
Exchange on Apr 16
status
2025
Investor
Company's
Liang Jun Relations
production and
Apr 25 2025 Benxi Others Individual Zhang Activity Record
operational
Qiansheng on Apr 25
status
2025
31Bengang Steel Plates Co. Ltd. Annual Report 2025
Company's Investor
production and Relations
Jun 5 2025 Benxi Others Individual Zhang Yi
operational Activity Record
status on Jun 5 2025
Zhongtai
Securities-Ren
Company's Investor
Heng Bank of
production and Relations
Jun 6 2025 Benxi Others Institution Communication
operational Activity Record
s Schroder
status on Jun 6 2025
-Zhuang
Tongyun
GF Securities -
Chen Qiwei Company's Investor
Taiping production and Relations
Jun 13 2025 Benxi Others Institution
Pension operational Activity Record
Insurance status on Jun 13 2025
- Qin Yuan
Pacific
Company's Investor
Securities-Liu
On-site production and Relations
Jun 25 2025 Benxi Institution Yanfen Pacific
research operational Activity Record
Securities-Wan
status on Jun 25 2025
g Qili
Pacific
Securities-An
Company's Investor
Fenglou
Jul 23 2025 On-site production and Relations
Benxi Institution Soochow
research operational Activity Record
Securities- Liu
status on Jul 23 2025
Wenbo Chen
Boming
Company's Investor
Online
Performance production and Relations
Sep 5 2025 Benxi Platform Individual
Presentation operational Activity Record
Exchange
status on Sep 3 2025
Changjiang
Securities-Zhao
Chao
Guotai Haitong
Securities-Li
Pengfei Wang
Hongyu
China
Securities Co.Ltd.-Wang
Investor
Mingyu Company's
Relations
On-site Everbright production and
Sep 15 2025 Anshan Institution Activity Record
research Securities operational
on Sep 15
-Wang Qiuqi status
2025
Zhongtian
Securities -Liu
Dahai
SDIC UBS
Fund -Zhou
Sijie Wang
Peng
China Asset
Management
-Zhai Yuhang
32Bengang Steel Plates Co. Ltd. Annual Report 2025
Hengan Life
Fund -Fu
Zhihao
Fortune SG
Fund -Xue
Yang
Everbright
Bank -Guang
Mingming
Wang Zhihao
Kaiyuan
Securities -Sun
Erchun
Shenwan
Hongyuan
Securities
-Chen Songtao
Zhou Hao
Sinolink
Securities
-Wang Qinyang
Minsheng
Securities -Fan
Yun
China Galaxy
Securities
-Zhao Liangbi
Zhou Xin Tong
Yi Zhao
Zhongxing
Zheshang
Securities
-Shen Haojun
Pacific
Securities -An
Fenglou
Huachuang
Securities -Ma
Ye
Caitong
Securities
-Zheng Huiwen
GF Securities
-Gao Jinge Lin
Qian
SDIC
Securities -You
Tianyang
Ping An
Securities
-Zhang Yichen
Huatai Asset
Management
Funds -Liu
Zhenchao
Zhongtai
Securities –
33Bengang Steel Plates Co. Ltd. Annual Report 2025
Wang Tuantuan
Ma Zheng
Guotai Haitong
Investor
Securities — Company's
Relations
On-site Wang Hongyu production and
Sep 16 2025 Benxi Institution Activity Record
research Li Pengfei operational
on Sep 16
Fullgoal Fund status
2025
— Xue Yang
Investor
Company's
Minsheng Relations
On-site production and
Sep 16 2025 Benxi Institution Securities — Activity Record
research operational
Fan Jun on Sep 16
status
2025
Caitong
Securities —
Zheng Huiwen Investor
Company's
CICCAsset Relations
production and
Sep 18 2025 Benxi Others Institution Management Activity Record
operational
— Ma on Sep 18
status
Xiaopeng Hu 2025
Di Tang
Dongsheng
Sealand
Securities —
Hu Qianqian
CITIC Trust —
Yang Xiaochen
He Jiapeng
China
Merchants
Fund — Guo
Min Ma Hailin
Essence
Securities —
Liu Jiaqi
Huashang Fund
—Yu Danni
Guosheng
Company's Investor
Securities —
production and Relations
Oct 21 2025 Benxi Others Institution Liu Jinyu
operational Activity Record
Pacific
status on Oct 21 2025
Securities — Li
Guang Wang
Qili
Minsheng
Caixin Fund —
Tang Siyi
Hongde Fund
— Zhao
Duanduan
CITIC
Securities —
Zheng
Qinyuan Tian
Xiangxun
Guoshou-Amun
di Fund — Qu
34Bengang Steel Plates Co. Ltd. Annual Report 2025
Langning
Taiping Fund
—Wang
Jiacheng
CCB Principal
Asset
Management
—Wang Xuhui
Northeast
Securities —
Deng Xinning
Yinhua Fund —
Jiang Shan
First Capital
Securities —
Liu Lin
Yinhua Fund —
Chen Xiaoya
Zheshang
Securities —
Liu Weiqi
Essence
Securities —
Zhou Yatong
Kaifeng
Investment —
Tong Shuai
Da Cheng Fund
— Qin Weihao
Union
Securities —
Yan Shu
Quanguo Fund
— Liu
Bingqing
Baichuan
Investment —
Xu Yanyan
Ruizhong
Insurance —
Peng Shuangyu
Gaoteng
International
Asset
Management
— Lyu Dong
Yuekai
Securities —
Deng Yanwen
Allianz
Insurance —
Zhu Hui
Founder
Securities —
Zhu Zhangyuan
Rich Futures —
Liu Qiyu
35Bengang Steel Plates Co. Ltd. Annual Report 2025
CICCAsset
Management
(Pension) —
Ma Xiaopeng
Xinhua Fund
— Zhu Xu
ICBC Credit
Suisse — Zhou
Tong
Allianz Asset
Management
— Gao Yunfei
Ping An
Pension — Hao
Feng
Ruijun Asset —
Liu Guoxing
Company's Investor
Tang Sheng
production and Relations
Nov 4 2025 Benxi Others Institution Guotai Haitong
operational Activity Record
Securities —
status on Nov 4 2025
Wang Hongyu
Chen Ying
Company's Investor
Online
Performance production and Relations
Nov 6 2025 Benxi Platform Individual
Presentation operational Activity Record
Exchange
status on Nov 6 2025
CICCAsset
Management
— Mo Huayin
Investor
Great Wall Company's
Relations
On-site Asset production and
Nov 17 2025 Benxi Institution Activity Record
research Management operational
on Nov 17
— Zhou Yifu status
2025
Tianfeng
Securities —
Tang Menghan
E Fund
Management Investor
Company's
—Wang Relations
Telephone production and
Dec 16 2025 Benxi Institution Cheng Yang Activity Record
Communication operational
Kang Bao on Dec 16
status
Yunxiao Tian 2025
Xin Zhang Yi
Hua'an Fund — Investor
Company's
Wang Xiaodan Relations
On-site production and
Dec 17 2025 Benxi Institution Caitong Activity Record
research operational
Securities — on Dec 17
status
Zheng Huiwen 2025
Founder Fubon
— Niu
Weisong Investor
Company's
Bosera Asset Relations
production and
Dec 18 2025 Benxi Others Institution Management Activity Record
operational
— Fan Zhuoyu on Dec 18
status
Kaifeng 2025
Investment —
Tong Shuai
36Bengang Steel Plates Co. Ltd. Annual Report 2025
Ping An Fund
— Gao
Yongbiao
CITIC Asset
Management
—Wang
Bojun Tian
Xiangxun
Huang Delong
Zheng Qinyuan
Baichuan Asset
Management
— Xu Yanyan
Huatai
Securities Asset
Management
— Feng Ruiqi
PICCAsset
Management
— Feng Shun
CICCAsset
Management
— Ma
Xiaopeng
Yuanxin
Yongfeng — Qi
Haolin
Pacific
Securities —
An Fenglou
Bosera Asset
Management
— Gao Xin
ICBC Credit
Suisse — Zhou
Tong
PICC Pension
— Xia Bingxin
Rongtong Fund
— Jiang Yilong
Everbright
Prudential —
Wang
Xiaohong
BOCOM
Schroders Fund
— Zhuang
Tongyun
Harvest Fund
— Li Yu'ang
Xinhua Fund
— Zhu Xu
Quanguo Fund
— Liu
Bingqing
On-site CITIC Company's Investor
Dec 22 2025 Benxi Institution
research Securities — production and Relations
37Bengang Steel Plates Co. Ltd. Annual Report 2025
Wu Feng Li operational Activity Record
Tianxiong status on Dec 22
2025
XIII. The Formulation and Implementation of Market Value Management System and
Valuation Enhancement Plan.Whether the company established a market value management System
□Yes □No
Whether the company disclosed its valuation enhancement plan
□Yes □No
On February 27 2025 the Company convened the 33rd meeting of its 9th Board of Directors during which it reviewed and approved
the Company Valuation Enhancement Plan and subsequently disclosed it to the public. During the reporting period the Company
focused on its core responsibilities and primary business operations; anchored on efficiency improvements it continued to set
multiple historical records. It concentrated efforts on high-end products to enhance their technological content and added value;
upheld the principle of technological empowerment to accelerate the upgrading and retrofitting of intelligent production lines;
addressed shortcomings and optimized its structural layout to elevate the level of coordinated development regarding quality and
efficiency; and focused on green transformation—specifically accelerating the acceptance process for ultra-low emission
standards—among other measures designed to boost operational efficiency and profitability. Actively implementing its high-quality
development objectives the Company established a scrap steel subsidiary thereby achieving a dual enhancement in both asset
quality and the efficient allocation of resources while continuing to advance a major asset restructuring initiative. Upholding the
philosophy of serving investors the Company expanded its investor communication channels by launching a dedicated investor
hotline and establishing a specific email address for investor inquiries; it achieved a 100% response rate on the "Hudong e" platform
conducted 23 investor communication events hosted numerous research institutions for on-site visits and surveys and convened
briefings for annual semi-annual and third-quarter earnings results—thereby promoting the standardization of such earnings
briefings. Adhering steadfastly to the principles of "truthfulness accuracy completeness timeliness and fairness" in information
disclosure the Company actively fulfilled its disclosure obligations completing 43 separate disclosure events and publishing a total
of 131 documents including periodic reports and ESG reports. Consequently the Company's share price experienced an upward
trend.XIV. Implementation of the "Quality Return Dual Improvement" Action Plan
Whether the company has disclosed the announcement of the "Quality Return Dual Improvement" action plan
□Yes □No
38Bengang Steel Plates Co. Ltd. Annual Report 2025
IV. Corporate Governance Environment and Society
I. Basic Situation of Corporate Governance
During the reporting period the Company has been following the laws regulations and documents such as the
Company Law Securities Law Governance Guidelines for Listed Companies Guidelines for the Normative
Operation of Listed Companies on the Shenzhen Stock Exchange and Articles of Association. Based on the actual
situation of the company the Company has been continuously improving the corporate governance structure and
internal control system of the company improves the governance level and promotes the company's standardized
operation. As of the end of the reporting period the actual situation of corporate governance meets the
requirements of the regulatory documents related to the governance of listed companies.
1. Shareholders and Shareholders' General Meeting: The company has formulated the "Rules of Procedures for
General Meetings of Shareholders" in strict accordance with the "Company Law" "Rules for Shareholders'
General Meetings of Listed Companies" and the company's "Articles of Association" to ensure the exercise of the
rights of the company's shareholders and the standard operation of the shareholders' meeting. The company's
previous shareholder meetings have provided two attendance channels on-site voting and online voting to
facilitate shareholders. Involving major issues that affect the interests of small and medium investors the
company counts the votes of small and medium investors individually and discloses them in a timely manner to
ensure that all shareholders enjoy equal status and fully exercise their rights. And by hiring lawyers to witness and
ensure the legal compliance of the convening convening and voting procedures of the meeting the legitimate
rights and interests of the company and shareholders have been safeguarded.
2. Directors and the board of directors: the company's board of directors has clear responsibilities and the
company's directors exercise their powers in strict accordance with the "Articles of Association" "Rules of
Procedures of the Company's Board of Directors" "Company Independent Directors Work System" and other
related systems perform their duties with integrity and diligence and safeguard the legitimate rights and interests
of the company and shareholders. The company's board of directors has four special committees namely audit
strategy nomination remuneration and assessment each of which performs its own responsibilities and functions
and can carry out its work in accordance with the rules of procedure of each special committee. During the
reporting period the convening and holding procedures of the company's board of directors complied with the
“Company Law” “Articles of Association” and “Rules of Procedure of the Board of Directors” and other relevant
laws and regulations.
3. Supervisors and Board of Supervisors: The company's supervisors can earnestly perform their duties
independently and effectively perform supervision and inspection functions. The company's supervisors attend
shareholders' meetings attend board meetings as non-voting delegates regularly inspect the company's legal
operations and financial conditions and issue opinions from the board of supervisors. Supervise the company's
finances the performance of the company's directors and senior management personnel and the capital exchanges
with related parties so as to safeguard the legal rights and interests of the company and shareholders. The number
and structure of the board of supervisors meet the requirements of laws and regulations and its convening and
convening are strictly implemented in accordance with the "Articles of Association" and "Rules of Procedure of
the Board of Supervisors" to ensure that the board of supervisors effectively performs its duties.
4. Controlling shareholders and the company: The company has independent and complete business and
independent management capabilities and is independent of the controlling shareholders and actual controllers in
terms of business personnel assets institutions and finances; The company's board of directors board of
supervisors and other internal institutions operate independently; The company's major decisions are made by the
board of directors or the general meeting of shareholders in accordance with the law. There is no direct or indirect
intervention in the company's decision-making and production and operation activities beyond the general
meeting of shareholders nor does it harm the interests of the company and other shareholders.
39Bengang Steel Plates Co. Ltd. Annual Report 2025
5. Information disclosure and transparency: The company strictly complies with the requirements of the
"Shenzhen Stock Exchange Stock Listing Rules" and the "Information Disclosure Management System" and other
requirements truthful accurate and complete without false records misleading statements or major omissions in
performing information disclosure obligation "China Securities Journal" "Securities Times" "Hong Kong
Commercial Daily" and www.cninfo.com.cn are the designated media for company information disclosure. The
company publishes regular reports and temporary announcements through the above-mentioned information
disclosure media to ensure that all shareholders of the company can obtain information with equal opportunities.
6. Investor relationship management: The company continues to strengthen communication with investors to
deepen investors' understanding and recognition of the company. The company appoints the secretary of the board
of directors as the person in charge of investor relations management and the office of the board of directors is the
organization that undertakes the daily work of investor relations management. The company makes full use of
on-site meetings dedicated telephone calls investor interaction platforms and other methods to communicate with
the company's shareholders listens carefully to the opinions and suggestions of investors on the company's
strategic development and production and operation and has established a good communication mechanism with
investors which enhances investors' understanding and investment confidence in the company.Whether there exists any difference in compliance with corporate governance PRC Company Law and relevant
provisions of CSRC
□ Yes √ No
There exists no difference in compliance with corporate governance PRC Company Law and relevant provisions
of CSRC.II. Explanation on Structural Independence of the Company on Business Personnel Assets Organization
and Finance from the Controlling Shareholder
The Company is separated from the controlling shareholder in aspects of business personnel assets organization
and finance etc. and has its own independent and complete business operation.
(1) In business operation: The Company has its own production and business planning financial affairs check and
calculate labor and personnel raw material supplies and products selling business system independently and
completely.
(2) In personnel: The Company and controlling shareholder are separate in such aspects as labor personnel and
salary management. Such senior executives as company's chairman general manager vice general manager
secretary of Board of Directors etc. get salary from the Company and hold the important position other than a
director in shareholder department.
(3) In Asset: The Company is separated from the controlling shareholder's clearly in asset. The Company has its
own independent purchase production and marketing system.
(4) In organization: The internal operations of the Company are independent; organization structure and working
function are totally independent.
(5) In finance: The company has independent financial management department the accounting and financial
management system where are complete and operated independently and has bank account and pay taxes
independently.III. Competition Situations of the Industry
√ Applicable □Not applicable
Type of
Company Progress and
Question type affiliation Companywith name Cause Solution follow-upnature plans
listed
40Bengang Steel Plates Co. Ltd. Annual Report 2025
companies
Ansteel
promises that
within 5 years
from the date
of issuance of
its
commitment
letter and The Company
strive to use a disclosed that
shorter period the Plan for
of time in Major Asset
accordance Replacement
with the and Related
requirements Party
of the relevant Transactions
securities on June 21st
regulatory 2023 and
authorities planned to
and on the carry out asset
premise of replacement
complying with BengangAnsteel Steel Co.. At
Group Co. with the present the
Horizontal Controlling Ansteel Ltd. applicable Company is
competition shareholder Group Other reorganized laws and further
Co. Ltd. Benxi Steel regulations demonstrating
Group Co. and relevant
Ltd. regulatory communicatinrules at that g and
time it will negotiating
comprehensiv the
ely use transaction
various plan. After the
methods such relevant
as asset matters are
restructuring determined
business the Company
adjustment will convene
entrusted the Board of
management Directors
etc. to steadily again for
promote the deliberation.integration of
relevant
businesses to
solve the
problem of
horizontal
competition.
41Bengang Steel Plates Co. Ltd. Annual Report 2025
IV. Status of Directors Supervisors and Senior Executives
1. Basic Information
Shares Shares
increas decrea
Startin Shares Other Shares
Expiry ed sed Reaso
g date held at increas held at
Gende Positio Office date of during during n for
Name Age of the e / the
r n Status office the the change
office year-b decrea year-e
term reporti reporti s
term egin se nd
ng ng
period period
Chair
man
Huang 18
Genera In 25 Apr
Zuowe Male 55 May
l office 2028
i 2023
manag
er
Emplo
Quan
yee In 19 Oct 25 Apr
Xihon Male 48
Direct office 2023 2028
g
or
Wang
Direct In 16 Mar 25 Apr
Dongh Male 56
or office 2023 2028
ui
Tang Direct In 22 Jul 25 Apr
Male 53
Yaowu or office 2022 2028
Liu
Direct In 25 Dec 25 Apr
Zheng Male 55
or office 2024 2028
ang
Indepe
Femal ndent In 25 Apr 25 Apr
Wu Li 59
e Direct office 2025 2028
or
Indepe
20
Yuan ndent In 25 Apr
Male 44 May
Zhizhu Direct office 2028
2020
or
Indepe
Zhang
ndent In 25 Apr 25 Apr
Guang Male 53
Direct office 2025 2028
ning
or
Deput
y
Li
Male 52 genera
In 28 Mar 25 Apr
Zhiwei l office 2025 2028
manag
er
Deput
Wei y
In 28 Mar 25 Apr
Chunx Male 52 general office 2025 2028
in manag
er
Liu Deputy In 28 Sep 25 AprMale 46
Dongy genera office 2025 2028
42Bengang Steel Plates Co. Ltd. Annual Report 2025
e l
manag
er
Head
of
Liu Financ In 28 Sep 25 Apr
Tieche Male 48 e
Board office 2025 2028ng
Secret
ary
Indepe 16
Zhang Femal
70 ndent
Depart 25 Apr
May
Suxun e Direct ure 2025
or 2019
Indepe
27
Zhong Femal ndent Depart 25 Apr
69 May
Tianli e Direct ure 2025
2021
or
Deput
y
Liu
genera Depart 17 Aug 28 Mar
Zhang Male 51
l ure 2022 2025
man
manag
er
Deput
y
Guo
Male 56 genera
Depart 17 Aug 28 Sep
Yuwei l ure 2022 2025
manag
er
Head
of
Zheng Financ
Zhengl Male 49 e
Depart 28 Feb 28 Sep
i Board
ure 2023 2025
Secret
ary
Total -- -- -- -- -- -- 0 0 0 0 0 --
During the reporting period is there any resignation of directors and supervisors and dismissal of senior
management personnel during the reporting period
√Yes □No
1. Mr. Zhang Suxun formerly an Independent Director of the Company has stepped down upon the expiration of
his term.
2. Ms. Zhong Tianli formerly an Independent Director of the Company has stepped down following the
reconstitution of the Board of Directors.
3. Liu Zhangman formerly the company's Deputy General Manager has stepped down due to a change in work
assignment.
4. Guo Yuwei formerly the company's Deputy General Manager has stepped down due to a change in work
duties.
5. Zheng Zhengli the Company's former Chief Accountant and Board Secretary has stepped down due to a
change in work duties.Changes in directors supervisors and senior management of the Company
√Applicable □Not applicable
Name Position Type of change Date Reason
Departure upon
Zhang Suxun Independent director expiration of term of 25 Apr 2025 Term change
office
Zhong Tianli Independent director Departure 25 Apr 2025 Term change
43Bengang Steel Plates Co. Ltd. Annual Report 2025
Zhang Guangning Independent director Elected 25 Apr 2025 Term change
Wu Li Independent director Elected 25 Apr 2025 Term change
Deputy general
Liu Zhangman Removal 28 Mar 2025 Job Transfer
manager
Deputy general
Li Zhiwei Appointment 28 Mar 2025 Job Transfer
manager
Deputy general
Wei Chunxin Appointment 28 Mar 2025 Job Transfer
manager
Deputy general
Guo Yuwei Removal 28 Sep 2025 Job Transfer
manager
Chief Accountant and
Zheng Zhengli Removal 28 Sep 2025 Job Transfer
Board Secretary
Deputy general
Liu Dongye Appointment 28 Sep 2025 Job Transfer
manager
Chief Accountant and
Liu Tiecheng Appointment 28 Sep 2025 Job Transfer
Board Secretary
2. Posts holding
Work experience professional background and currently mainly responsibilities of Directors Supervisors and Senior Executives in
current office
Huang Zuowei male born in 1970 holds a university degree and a Master of Engineering. He is a Senior Engineer (at the highest
professional rank) and currently serves as Secretary of the Party Committee Chairman and General Manager of Bensteel Plates Co.Ltd. as well as Chairman of Bensteel-POSCO Co. Ltd. His previous positions include Director of the Energy and Environmental
Protection Department at Bensteel Plates Co. Ltd.; General Manager of the Planning and Technology Department at Bensteel Group;
Director of Bensteel Beiying Co. Ltd.; Director of Bensteel Mining Co. Ltd.; and Deputy Secretary of the Party Committee
Director and Deputy General Manager of Bensteel Plates Co. Ltd.Quan Xihong male born in 1977 holds a university degree and a Bachelor of Engineering. He is a Senior Engineer and currently
serves as Deputy Secretary of the Party Committee Employee Director Secretary of the Disciplinary Inspection Commission
Chairman of the Trade Union General Counsel Chief Compliance Officer and Secretary of the Company Headquarters Party
Committee at Bengang Steel Plates Co. Ltd. His previous positions include Deputy Director of the Comprehensive Inspection
Division of the Disciplinary Inspection Commission (Supervision Department) at Bengang Group Corporation; Director of the Office
for the Supervision and Management of Disciplinary Inspection and Supervision Cadres; and Director of the Disciplinary Inspection
and Supervision Office. He also served at Bengang Beiying Company as Manager of the Audit Department Deputy Secretary of the
Disciplinary Inspection Commission and Director of the Party and Administrative Supervision Office.Wang Donghui male born in 1969 holds a university degree a Bachelor of Engineering and a Bachelor of Economics. He is a
Senior Accountant (at the highest professional level) and currently serves as a Director of Bengang Plates Co. Ltd. as well as the
General Manager of the Capital and Finance Department at Bengang Group. His previous positions include Chief Accountant and
Head of the Finance Department (concurrently serving as Head of the Operations Improvement Department) at Bengang Beiying Co.Ltd.; Deputy Head of the Finance Department at Bengang Group (concurrently serving as Chief Accountant at Bengang Beiying Co.Ltd.); Head of the Finance Department at Bengang Group; Chief Accountant and Board Secretary at Bengang Plates Co. Ltd.; and
Chief Accountant at Bengang Mining Co. Ltd.Tang Yaowu male born in 1972 holds a university degree and a Bachelor of Engineering and is a qualified Engineer. He currently
serves as a Director of BenG
gang Plates Co. Ltd.; a Full-time Director and Supervisor within the Office of Bengang Group; a Director of the Machinery
Manufacturing Company; and a Director of the Thermal Power Company. His previous positions include Deputy Director of the
Rolling Mill at Bengang Beiying Company; Executive Deputy Director of the Rolling Mill at Bengang Beiying Company; Director
of the Rolling Mill at Bengang Beiying Company; Assistant General Manager and Head of the Production Department at Bengang
Beiying Company; Chief Engineer at Bengang Beiying Company; Chief Engineer and Director of the Rolling Mill at Bengang
Beiying Company; Deputy General Manager and Chief Engineer at Bengang Beiying Company; and Deputy Head of the Energy and
Environmental Protection Department at Bengang Plates Co. Ltd.Liu Zhengang male born in 1970 holds a university degree and the professional title of Senior Political Work Specialist. He
currently serves as a Director of Bensteel Sheet Company; a Full-time Director and Supervisor within the Office of Bensteel Group; a
Director of Beigang Company; a Director of the Industrial Company; and a Supervisor of the Construction Company. His previous
positions include Deputy Manager and Deputy Secretary of the Party Committee of Bensteel New Industrial Development Company;
Deputy Director of the Administrative Management Center at Benxi Iron & Steel Company; Director of Asset Management within
the Planning and Technology Department of Bensteel Group; and a Director of the New Ventures Company.Yuan Zhizhu male born in 1981 holds a Ph.D. and the rank of Professor; he is a non-practicing member of the Chinese Institute of
Certified Public Accountants (CICPA). Currently he serves as the Head of the Department of Accounting a Professor and a Doctoral
Supervisor at the School of Business Administration Northeastern University. Additionally he serves as an Independent Director for
44Bengang Steel Plates Co. Ltd. Annual Report 2025
Bengang Steel Plates Co. Ltd. Shenyang Machine Tool Co. Ltd. Jinbei Automotive Co. Ltd. and Dandong Oriental Measurement
& Control Technology Co. Ltd. (a non-listed company) and holds the position of Vice President of the Liaoning Provincial Society
of Accounting Abacus and Mental Arithmetic. Previously he served as a Lecturer and Associate Professor at the School of Business
Administration Northeastern University.Zhang Guangning male born in 1972 holds a Ph.D. in Economics. He currently serves as Senior Strategic Advisor at Neusoft Cloud
Technology Co. Ltd. and as an Independent Director at both Northern United Publishing & Media (Group) Co. Ltd. and Huadian
Liaoning Energy Development Co. Ltd. Previously he served as Assistant to the President and Board Secretary at Neusoft Holdings
Co. Ltd.; Board Secretary at Shenyang Machine Tool Co. Ltd.; and Executive Vice President and Managing Director at Liaoning
Neusoft Venture Capital Co. Ltd.Wu Li female born in 1966 holds a Ph.D. in Management Science and Engineering. She is an Associate Professor of Accounting
and a Master's Supervisor at Northeastern University. She currently serves as an Independent Director of Shenyang Chemical Co.Ltd. Her previous appointments include serving as an Independent Director for various listed companies including Fangda Carbon
Jinzhou Shen Gong Jinbei Automotive Yuanda Intelligent and Northeast Pharmaceutical.Profiles of Non-Director Senior Management:
Li Zhiwei male born in 1973 holds a university degree as well as Master's degrees in Engineering and Public Administration. He is
a Professor-level Senior Engineer and currently serves as the Deputy General Manager of Bensteel Plates Co. Ltd. His previous
positions include Secretary of the Party Committee and Director of the Cold Rolling General Plant at Bensteel Plates Co. Ltd.;
Director and General Manager of Bensteel-POSCO Co. Ltd.; General Manager and Deputy Secretary of the Party Committee of the
Marketing Center at Bensteel Plates Co. Ltd.; and Deputy General Manager of Bensteel International Trading Co. Ltd.Wei Chunxin male born in 1973 holds a university degree and a Master of Engineering. He is a Professor-level Senior Engineer and
currently serves as the Deputy General Manager of Bensteel Plates Co. Ltd. His previous positions include Director of the
Steelmaking Plant at Bensteel Plates Co. Ltd.; Director of the Cold Rolling General Plant and Deputy Secretary of the Party
Committee at Bensteel Plates Co. Ltd.; and Director and General Manager of Bensteel-POSCO Co. Ltd.Liu Dongye male born in 1979 holds a university degree and the professional title of Senior Engineer. He currently serves as the
Deputy General Manager of BenGang Plates Co. Ltd. His previous positions include Deputy Director of the Hot Continuous Rolling
Plant at BenGang Plates; Manager of the Equipment Engineering Department at BenGang Plates; Manager of the Planning and
Engineering Department at BenGang Plates; Deputy General Manager of the Operations Management Department at BenGang
Group Co. Ltd.; and Director General Manager and Deputy Secretary of the Party Committee at BenGang Equipment Engineering
Company.Liu Tiecheng male born in 1977 holds a postgraduate degree and is a qualified Accountant. He currently serves as the Chief
Financial Officer and Board Secretary of Bengang Steel Plates Co. Ltd. His previous positions include Financial Director of
Bengang New Industry Company; Director of Budget Management within the Finance Department of Bengang Group; Deputy
Manager of the Finance Department and Director of the Financial Shared Services Center at Bengang Group; and Deputy Manager of
the Capital Finance Department and Director of the Financial Shared Services Center at Bengang Group as well as Executive
Director of Hengyi Company.Situations in which the controlling shareholder and the actual controller simultaneously serve as both the Chairman and the General
Manager of a listed company.□ Applicable √Not applicable
Posts holding in Shareholders
√ Applicable □ Not applicable
Does he /she
receive
Names of the Names of the Titles engaged in Starting date of Expiry date of
remuneration or
person in office shareholders the shareholders office term office term
allowance from the
shareholder
General Manager
Bengang Group
Wang Donghui of Capital Finance 9 Feb 2023 Yes
Co. Ltd.Department
Bengang Group
Tang Yaowu Full-time director 24 Mar 2022 Yes
Co. Ltd.Bengang Group
Liu Zhengang Full-time director 1 Jul 2024 Yes
Co. Ltd.Description of the
position in the None
shareholder
Posts holding in other companies
√Applicable □Not applicable
Names of the Names of the other Titles engaged in Starting date of Expiry date of Does he /she
45Bengang Steel Plates Co. Ltd. Annual Report 2025
person in office companies other companies office term office term receive
remuneration or
allowance from the
shareholder
Bengang POSCO
Huang Zuowei Cold Rolled Sheet Chairman 25 Jul 2024 No
Co. Ltd.Benxi Iron & Steel
(Group)
Tang Yaowu Machinery Director 20 Jun 2022 No
Manufacturing
Co. Ltd.Benxi Iron & Steel
(Group) Thermal
Tang Yaowu Director 21 Oct 2024 No
Development Co.Ltd.Beitai Iron & Steel
Liu Zhengang Director 10 Jul 2023 No
(Group) Co. Ltd.Benxi Iron & Steel
(Group) Industrial
Liu Zhengang Director 21 Apr 2022 No
Development Co.Ltd.Benxi Iron & Steel
(Group)
Liu Zhengang Supervisor 1 Jul 2024 No
Construction Co.Ltd.College of
Business
Wu Li Administration Professor 1 Mar 2008 Yes
Northeastern
University
Shenyang Independent
Wu Li 29 Apr 2021 Yes
Chemical Co. Ltd. director
College of
Business Head of the
Yuan Zhizhu Administration Department of 13 Jul 2009 Yes
Northeastern Accounting
University
Shenyang Machine
Yuan Zhizhu Independentdirector 28 May 2021 YesTool Co. Ltd.Jinbei Automotive
Yuan Zhizhu Independent
Co. Ltd. director
23 Dec 2025 Yes
Dandong Oriental
Measurement &
Control
Yuan Zhizhu Independentdirector 12 Jul 2024 YesTechnology Co.Ltd. (Non-listed
Company)
Neusoft Cloud
Zhang Guangning Technology Co. Senior StrategicAdvisor 10 Jan 2025 Yes
Ltd.Zhang Guangning IndependentNorthern United director 27 Jul 2022 Yes
46Bengang Steel Plates Co. Ltd. Annual Report 2025
Publishing &
Media (Group)
Co. Ltd.Huadian Liaoning
Energy
Zhang Guangning Independent 23 Aug 2022 Yes
Development Co. director
Ltd.Description of the
position in other None
companies
Punishment by the securities regulatory authorities in last three years
□ Applicable √ Not applicable
3. Remuneration to Directors Supervisors and Senior Executives
Decision-making procedures basis of recognition and actual payment of the remuneration to Directors Supervisors and Senior
Executives
Decision making procedures
1. The Remuneration and Assessment Committee will produce a plan or proposal which will be implemented upon approval of the
Board or the Shareholders’ Meeting;
2. According to performance assessment criteria and procedures the Remuneration and Assessment Committee undertakes
assessment on the Directors and Senior Executives;
3. Remuneration amounts and ways of rewards will be proposed according to the assessment and remuneration policies for Directors
Supervisors and Senior Executives and adopted by voting;
4. To be implemented upon approval of the Board.
Basis of recognition
Remuneration scheme for a particular position is recognized basing on the range of responsibilities duties. Remunerations are
distributed based on the assessment results and remuneration policies.Actual payment of the remuneration
Remuneration is paid on monthly basis according to the remuneration allocation policies.Remuneration of Directors Supervisors and Senior Executives during the reporting period
Unit: RMB 10 thousand
Whether
Total pre-tax
receive
compensation
Name Gender Age Position Office status remuneration in
received from
the Company's
the company
related parties
Chairman
Huang Zuowei Male 55 General In office 52.6 No
manager
Employee
Quan Xihong Male 48 In office 45.78 No
director
Wang Donghui Male 56 Director In office 0 Yes
Tang Yaowu Male 53 Director In office 0 Yes
Liu Zhengang Male 55 Director In office 0 Yes
Independent
Wu Li Female 59 In office 0 No
director
Independent
Yuan Zhizhu Male 44 In office 5 No
director
Zhang Independent
Male 53 In office 0 No
Guangning director
Deputy general
Li Zhiwei 52 In office 19.72 No
manager
Wei Chunxin Male 52 Deputy general In office 20.59 No
47Bengang Steel Plates Co. Ltd. Annual Report 2025
manager
Deputy general
Liu Dongye Male 46 In office 7.08 No
manager
Chief
Accountant
Liu Tiecheng Male 48 Secretary of the In office 6.02 No
Board of
Directors
Independent
Zhang Suxun Female 70 Departure 5 No
director
Independent
Zhong Tianli Female 69 Departure 5 No
director
Deputy general
Liu Zhangman Male 51 Departure 9.95 No
manager
Deputy general
Guo Yuwei Male 56 Departure 33.13 No
manager
Chief
Accountant
Zheng Zhengli Male 49 Secretary of the Departure 30.57 No
Board of
Directors
Total -- -- -- 240.44 --
Measures for the Comprehensive Assessment
The basis for assessing the actual compensation received by all directors Evaluation and Compensation Management of
and senior management personnel at the end of the reporting period. Senior Management and Other Personnel of Bengang
Steel Plates Co. Ltd.Status of the Assessment of Actual Compensation Received by All Evaluations were conducted during the reporting
Directors and Senior Management Personnel as of the End of the period in accordance with the aforementioned
Reporting Period "Measures."
Arrangements for the deferred payment of actual compensation received
The incentive component for the term of office is
by all directors and senior management personnel as of the end of the
subject to deferred payment.reporting period.Details of the Clawback of Actual Compensation Received byAll
None
Directors and Senior Management at the End of the Reporting Period
Details of the Clawback of Actual Compensation Received byAll
None
Directors and Senior Management at the End of the Reporting Period
Note: The compensation for senior executives comprises the base salary received during their tenure as company executives in 2025
as well as the realized performance-based annual salary for the year 2024 (paid out during their tenure as executives). Specifically
the tenure for Li Zhiwei and Wei Chunxin covers the period from April to December 2025; for Liu Dongye and Liu Tiecheng from
October to December 2025; for Liu Zhangman from January to March 2025; and for Guo Yuwei and Zheng Zhengli from January to
September 2025.Other information
□ Applicable √ Not applicable
V. Duty fulfillment of directors during the reporting period
1. The situation of directors attending the BOD and shareholders meeting
Attendance of Directors at Board of Directors and General Meetings of Shareholders
Director Number of Number of Number of Number of Number of Failure to Number of
name Board spot meetings attendances personally generalmeetings attendances attended by by absences attend board meetings to
48Bengang Steel Plates Co. Ltd. Annual Report 2025
necessary to Communicati representativ meetings be attended
be attended on e successively
during the twice
reporting (Yes/No)
period
Huang
11 7 4 0 0 No 3
Zuowei
Quan Xihong 11 7 4 0 0 No 3
Wang
11 7 4 0 0 No 3
Donghui
Tang Yaowu 11 7 4 0 0 No 3
Liu
11 7 4 0 0 No 3
Zhengang
Zhang Suxun 4 1 3 0 0 No 1
Zhong Tianli 4 1 3 0 0 No 1
Yuan Zhizhu 11 7 4 0 0 No 3
Zhang
7 4 3 0 0 No 3
Guangning
Wu Li 7 4 3 0 0 No 3
Explanation of two consecutive absences from attending the Board of Directors in person
None
2. Objections of directors on relevant issues
Objections of directors on some relevant issues
□ Yes √ No
Directors proposed no objection against the relevant matters during the reporting period.
3. Other Notes to Duty Fulfillment of Directors
Whether any director’s advice to the Company was accepted
√ Yes □ No
Illustration of acceptance of or failure to accept director’s advice to the Company
During the reporting period the Company ’ s directors strictly fulfilled their duties of loyalty and diligence in
accordance with relevant laws and regulations— including the Guidelines for Corporate Governance of Listed
Companies the Administrative Measures for Independent Directors of Listed Companies the Stock Listing Rules
and the Normative Guidelines for the Operation of Main Board Listed Companies—as well as the Company ’ s
internal rules and regulations such as the Articles of Association the Rules of Procedure for General Meetings of
Shareholders and the Rules of Procedure for Board Meetings. Through means such as reviewing materials
attending meetings and receiving briefings via video or telephone the independent directors gained a
comprehensive understanding of the Company ’ s production and operational status the implementation of its
financial management and internal controls the execution of Board resolutions and its information disclosure
practices. When deliberating on proposals the directors— through methods including prior review meetings of
special committees dedicated meetings of independent directors and the expression of Board opinions—provided
review comments on matters such as related-party transactions profit distribution and the appointment of audit
firms thereby safeguarding the legitimate rights and interests of both the Company and all its shareholders. All
directors expressed their unanimous agreement with every proposal deliberated by the Board of Directors during
the reporting year and all relevant suggestions put forward by the directors were adopted by the Company.VI. Duty Fulfillment of the Special Committees under the Board during the reporting period
Number of Important Other Specific
Committees Membership meetings Meeting date Meeting commentscontent and performance
circumstance
held s of thesuggestions of duties objection (if
49Bengang Steel Plates Co. Ltd. Annual Report 2025
raised any)
Bengang
Steel Plates
Co. Ltd.Not
21 Feb 2025 2025 Agree None
applicable
Valuation
Enhancement
Plan
Proposal
Regarding
Huang Joint
Zuowei
Strategy Investment Not
Committee Wang 3 20 Mar 2025 Agree Nonewith Related applicable
Donghui Parties to
Zhong Tianli Establish a
Subsidiary
1. Report of
the Board of
Directors
Not
21 Mar 2025 2. Proposal Agree Noneapplicable
on the 2025
Investment
Plan
Proposal
Regarding
the Proposed
Downward
Adjustment
Not
9 Dec 2025 of the Agree None
applicable
Conversion
Price of
Huang Bengang
Zuowei Convertible
Strategy Wang Bonds
Committee 2Donghui Proposal
Zhang Regarding
Guangning the
Downward
Adjustment
Not
25 Dec 2025 of the Agree None
applicable
Conversion
Price of
Bengang
Convertible
Bonds
Proposal on
the
appointment
Yuan Zhizhu Not20 Mar 2025 of the Agree None
Zhang applicable
Nominating company's
Committee Suxun 2 senior
Huang manager
Zuowei
Proposal on Not
21 Mar 2025 nominating Agree Noneapplicable
candidates
50Bengang Steel Plates Co. Ltd. Annual Report 2025
for directors
Proposal on
the
appointment
Not
25 Apr 2025 of the Agree None
applicable
company's
Yuan Zhizhu senior
Zhang
Nominating manager
Committee Guangning 2
Huang Proposal on
Zuowei the
appointment
Not
22 Sep 2025 of the Agree None
applicable
company's
senior
manager
1.2024
Compliance
Work Report
2.2024
Internal
Control
System Work
Report
Not
20 Mar 2025 3. 2025 Agree Noneapplicable
Major
Operational
Risk Forecast
and
Assessment
Report
4. 2025 Audit
Work Plan
Zhang 1. 2024
Audit and
SuxunYuan Annual
Risk
Zhizhu 2 Report and
Management
Wang Summary
Committee
Donghui 2. 2024
Annual
Financial
Settlement
Report
3.2025
Annual Not
21 Mar 2025 Budget Agree Noneapplicable
Report
4. Proposed
Profit
Distribution
Plan for 2024
5. Proposal
Regarding
the
Reappointme
nt of the
Accounting
51Bengang Steel Plates Co. Ltd. Annual Report 2025
Firm
6.2024
Internal
Control
Evaluation
Report
7. Proposal
Regarding
Changes in
Accounting
Policies
8. Proposal
Regarding
the Provision
for Asset
Impairment
9. Special
Report on the
Deposit and
Utilization of
Raised Funds
for 2024
10. Proposal
Regarding
the
Completion
of Certain
Investment
Projects
Funded by
Raised Funds
and the
Permanent
Allocation of
Surplus
Funds to
Working
Capital
First Quarter Not
25 Apr 2025 Agree None
Report 2025 applicable
1. Proposal
Regarding
the
Temporary
Use of Idle
Audit and Wu Li Yuan Raised Funds
Risk Zhizhu
7 to
Management Wang Supplement Not
Committee Donghui 10 Jul 2025 Agree NoneWorking applicable
Capital
2. Proposal
Regarding
the Opening
of a
Dedicated
Account for
52Bengang Steel Plates Co. Ltd. Annual Report 2025
the
Temporary
Supplement
of Working
Capital
Using Raised
Funds and
the
Execution of
a
Supervisory
Agreement
for the
Dedicated
Account
1. Ben Gang
Steel Plates
Co. Ltd.
2025
Semi-Annual
Report
Not
15 Aug 2025 2. Special Agree Noneapplicable
Report on the
Deposit and
Utilization of
Raised Funds
for the First
Half of 2025
Proposal
Regarding
the Change Not
22 Sep 2025 Agree None
of the Chief applicable
Financial
Officer
Q3 2025 Not
17 Oct 2025 Agree None
Report applicable
1.2025
Internal
Control
2 Dec 2025 Evaluation
Not
Agree None
Plan applicable
2. 2026 Audit
Plan
Proposal on
Revising the
Regulations
on
Not
19 Dec 2025 Comprehensi Agree None
applicable
ve Risk and
Internal
Control
Management
53Bengang Steel Plates Co. Ltd. Annual Report 2025
Proposal
Regarding
the
Performance
Assessment
Indicators for
Not
10 Jul 2025 the Agree None
applicable
Company’s
Management
Team for the
Year 2025
and the 2024
–2026 Term
Proposal
Compensatio Zhang Regarding
n and Guangning the "Red and
3
Assessment Yuan Zhizhu Blue List
Committee Tang Yaowu 3.0" Not
22 Sep 2025 Agree None
Assessment applicable
Plan for
Deputy-Leve
l Company
Executives
Proposal
Regarding
the
Realization
Not
19 Dec 2025 of 2024 Agree None
applicable
Annual
Salaries for
Senior
Executives
VII. Duty Fulfillment of the Supervisory Committee
Whether the supervisory board made any objection against the supervision issue during the reporting period
□ Yes √ No
The Supervisory Board made no objection against the supervision issue during the reporting period.VIII. Staff Condition
1. Staff Population Professional Structure and Education Level
Population of in-service staff in parent company 11522
Population of in-service staff in main subsidiaries 633
Total population of in-service staff 12155
Total population of staff receiving remuneration in the current
period 12155
Population of retired staff whose expense was borne by parent 24956
54Bengang Steel Plates Co. Ltd. Annual Report 2025
company and major subsidiary companies
Professional Composition
Type of Professional Composition Population
Production Staff 10174
Sales Staff 357
Technician 915
Financial Staff 85
Administrative Staff 624
Total 12155
Educational Degree
Type of Educational Degree Population
PhD and above 13
Postgraduate 253
Undergraduate 3956
Junior College 4748
Below the Junior College Level 3185
Total 12155
2. Remuneration Policies
In 2025 the company will establish a sound performance management system. Based on the determined annual production and
operation guidelines policies and management goals the company will assess the operating indicators and work task completion of
each functional department and factory set key performance assessment indicators and implement monthly assessments. Pay
according to position ability and performance. Set salary according to position and salary changes with position changes. Guide
employees to improve their abilities establish a salary distribution mechanism in which job placement depends on competition and
income depends on contribution highlight the assessment of key performance indicators and truly realize that income can be
increased or decreased. Continue to deepen the reform of the "three systems" guiding all units to rationally allocate human resources
optimize distribution mechanisms and enhance labor productivity.
3. Training Plan
In 2025 the company will implement the "talent-driven enterprise" strategy focus on building an internationally competitive
production base for automotive steel and high-quality steel bars and wires optimize the education and training system improve the
training evaluation mechanism and improve the quality and effectiveness of training. It will highlight the political systematic
precise and effective nature of training continuously improve the political leadership general and professional abilities of
employees and strive to create distinctive high-quality training projects effectively release the effectiveness of training further
improve the comprehensive quality of the workforce and lay a solid foundation for the company's high-quality development. The
company completed 17 training projects throughout the year trained 21 thousand people and the annual training plan execution rate
reached 100%. The training target plan was fully achieved.
4. Outsourcing
□ Applicable √ Not applicable
IX. Profit Distribution or Capital Reserve Conversion
Formulation implementation and adjustment of profit distribution policy of common shares especially cash dividend
policy during the reporting period
√ Applicable □ Not applicable
Profit distribution plan for 2025: Audited and confirmed by BDO China Shu Lun Pan Certified Public Accountants LLP. in
accordance with the Chinese Accounting Standards for Business Enterprises the net profit attributable to the parent company in 2025
is RMB -3942278349.12 yuan. As of December 31 2025 the ending balance of company's undistributed profit is RMB
-11439289982.02 yuan. The profit distribution plan for 2025 is: no cash dividends no bonus shares and no capital reserve
conversion to increase share capital.Special description of cash dividend policy
Whether it meets the requirements of the company's articles of
association or the resolutions of the shareholders meeting: Yes
Whether the dividend standard and ratio are clear: Yes
Whether the relevant decision-making procedures and Yes
55Bengang Steel Plates Co. Ltd. Annual Report 2025
mechanisms are complete:
Whether independent directors have performed their duties due
diligence and played their due role: Yes
Due to the company's losses in 2025 the specific conditions for
cash dividends in the Articles of Association are not met. Taking
into account the company's development and capital needs in
If a company does not distribute cash dividends it should order to better protect the company's sustainable development
disclose the specific reasons and the measures it intends to take and the long-term interests of all shareholders it is planned that
to enhance the level of investor returns: no cash dividends will be distributed no bonus shares will beissued and no capital increase will be made from reserve in
2025. The company will continue to deepen reforms and
innovations strive to improve profitability and reward investors
with better performance.Whether small and medium shareholders have sufficient
opportunities to express their opinions and demands and whether Yes
their legitimate rights and interests are fully protected:
If the cash dividend policy is adjusted or changed whether the
conditions and procedures are compliant and transparent: Yes
Both the Company’s profit and the parent company’s retained earnings are positive however no proposal of cash dividend distribution
was proposed during the reporting period
□ Applicable √ Not applicable
Profit distribution and capital reserve conversion into share capital during the reporting period
□ Applicable √ Not applicable
The company plans not to distribute cash dividends issue bonus shares or convert capital reserves into share capital during the year.X. Implementation of the company's equity incentive plan employee stock ownership plan or other
employee incentive measures
□Applicable √ Not applicable
The company had no equity incentive plan employee stock ownership plan or other employee incentive measures and their
implementation during the reporting period.XI. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control system
The Company has consistently attached great importance to the development of its internal control system striving to establish a
comprehensive scientifically sound and effectively functioning framework of internal control policies. Furthermore in strict
accordance with national laws and regulations regulatory requirements and the Company’s actual operational conditions we
continuously conduct systematic evaluations and dynamic revisions of these policies. This ensures that our internal control
framework remains consistently advanced applicable and authoritative thereby fully leveraging the fundamental safeguarding role
that internal control policies play in corporate governance and operational management. During the reporting period the Company
formulated 17 new policies—including the Administrative Measures for Scientific and Technical Talent the Detailed Implementation
Rules for Assessment Deductions Regarding Financial Supervision Issues and the Administrative Measures for Collaborative
Business Operations— thereby further enhancing policy coverage in key areas and critical operational links. Additionally the
Company systematically revised 156 existing policies— such as the Administrative Measures for Confidentiality Supervision and
Inspection the Administrative Measures for Compliance Management and the Administrative Measures for Inbound Logistics and
Loss Control in Procurement—effectively addressing gaps and deficiencies while optimizing operational processes. As of the end of
the reporting period the Company maintained a total of 377 currently effective policies integrated into its internal control system
forming a well-structured and coherently interconnected framework that provides robust institutional support for the Company’s
standardized management risk prevention and operational efficiency enhancement.
2. Material internal control defects found during the reporting period
□ Yes √ No
XII. Management and control of subsidiaries during the reporting period
Problems
Company name Integration Integration encountered Solutions Solutions Follow-upplan progress during implemented progress solutions plan
56Bengang Steel Plates Co. Ltd. Annual Report 2025
integration
The Company’s
assets
personnel
Green Gold finance
(Benxi) organization
Renewable and business Completed Not applicable Not applicable Not applicable Not applicable
Resources Co. are integrated
Ltd. into the
company's
management
system
XIII. Internal control self-evaluation report or internal control audit report
1. Self-Evaluation Report on Internal Control
Disclosing date of internal control auditing
report full text April 4 2026
Index of the internal control auditing report
full text http://www.cninfo.com.cn
Proportion of total assets of subsidiaries
belong to the scope of self-evaluation
report in the total assets of the Company’s 100.00%
consolidated financial statements
Proportion of operation income of
subsidiaries belong to the scope of
self-evaluation report in the operation 100.00%
income of the Company’s consolidated
financial statements
Standards of Defects Evaluation
Category Financial Report Non-financial Report
I. Strategic Planning: 1. Major
Deficiencies: Significant deviations occur
during the realization of strategic
objectives rendering the corporate
strategy essentially unattainable and
severely hindering the enterprise's
sustainable development; 2. Important
1. Material deficiencies: Fraud by directors Deficiencies: Substantial deviations occur
supervisors and senior management; during the realization of strategic
correction of published financial statements objectives making the achievement of
by the enterprise; major misstatements in the corporate strategy difficult and having
financial statements which were not a significant impact on sustainable
discovered during the operation of internal development; 3. General Deficiencies:
control; ineffective supervision of internal Minor deviations occur during the
control by the enterprise audit committee realization of strategic objectives having
Qualitative criteria and internal audit agency. 2. Significant a limited impact on the corporate strategydeficiencies: Internal control defects in and sustainable development and are
accounting policies accounting and financial generally controllable. II. Daily
reporting that are less serious and have lower Operations: 1. Major Defects: Defects
economic consequences than major defects affecting the majority of the Company's
but may still cause the company to deviate major business types or key functional
from the control objectives. 3. General areas which have a significant impact on
deficiencies: Other internal control defects in the Company's overall operations and are
financial reporting other than major defects difficult to rectify over the long term; 2.and significant defects. Important Defects: Defects affecting a
portion of the Company's major business
types or key functional areas which have
a substantial impact on the Company's
overall operations and require significant
resources and time to rectify; 3. General
Defects: Defects affecting a specific
major business type or key functional
57Bengang Steel Plates Co. Ltd. Annual Report 2025
area — or a general business type or
functional area—which have a moderate
or lesser impact on the Company's overall
operations and require a certain level of
resources and time to rectify. III.Compliance: 1. Major Defects: Improper
handling of legal disputes and litigation
cases results in a significant impact on
the company's business causes
irreparable damage to the company's
reputation and leads to severe economic
losses for the enterprise; 2. Important
Defects: Improper handling of legal
disputes and litigation cases results in a
substantial impact on the company's
business causes significant damage to the
enterprise's reputation and leads to
considerable economic losses for the
enterprise; 3. General Defects: Improper
handling of legal disputes and litigation
cases results in some impact on the
company's business causes minor
damage to the enterprise's reputation and
leads to minor economic losses for the
enterprise. IV. Corporate Reputation: 1.Major Defects: Issues causing an
extremely significant impact on the
company requiring substantial effort and
cost over an extended period to rectify:
(1) Severe problems arise across various
sales-related factors leading the majority
of business partners to terminate their
cooperation or significantly reduce their
volume of business. (2) Negative
coverage in mainstream authoritative
media outlets results in customers and
suppliers suspending their cooperation
with the company. (3) Major quality
defects emerge in products utilized in key
engineering projects generating
significant public repercussions and
diminishing public acceptance. (4)
Incidents of product counterfeiting occur
creating a highly adverse impact that
erodes public acceptance and customer
loyalty. (5) The company is ordered by
regulatory authorities to suspend
operations for rectification. 2. Significant
Defects: Issues causing a substantial
impact on the company requiring
considerable effort and cost over a certain
period to rectify: (1) Persistent
complaints from business partners
regarding factors such as product quality
delivery lead times or pricing leading
some partners to cease cooperation. (2)
Negative coverage across multiple media
outlets draws the attention of key
business partners and adversely affects
the company's public image. (3) A major
quality-related incident occurs rendering
continued cooperation impossible and
indirectly hindering cooperation with
similar types of clients. (4) Incidents of
product counterfeiting occur disrupting
normal sales channels and payment
58Bengang Steel Plates Co. Ltd. Annual Report 2025
collection processes thereby causing
financial losses for both the company and
its customers. (5) The company receives
an official notification or public
reprimand from regulatory authorities. 3.Minor Defects: Issues causing a moderate
or lesser impact on the company
requiring some effort and cost over a
limited period to rectify: (1) Excessive
delivery lead times or inconsistent
product quality lead business partners to
reduce their volume of cooperation. (2)
Negative coverage within a limited scope
draws the attention of business partners.
(3) Quality issues arise during product
application; if mishandled these issues
lead customers to impose stricter
conditions for continued cooperation. (4)
Incidents of product counterfeiting occur
disrupting the normal sales activities of
the company's customers and prompting
them to demand product returns or
official clarifications. (5) The company is
required by regulatory authorities to
undertake internal rectification measures.V. Safety Aspects: 1. Major Defects: The
occurrence of an exceptionally severe
accident that impacts the health or safety
of a significant number of employees or
members of the public; 2. Significant
Defects: The occurrence of a severe
accident that impacts the health or safety
of a portion of the employees or members
of the public; 3. General Defects: The
occurrence of a substantial accident that
impacts the health or safety of a small
number of employees or members of the
public. VI. Environmental Protection
Aspects: 1. Major Defects: The
occurrence of a major environmental
incident (National Level II or higher)—
an environmental accident resulting in
severe environmental damage; 2.Significant Defects: The occurrence of a
substantial environmental incident
(National Level III)— an environmental
accident resulting in significant
environmental damage; 3. General
Defects: The occurrence of a general
environmental incident (National Level
IV)—an environmental accident resulting
in moderate environmental impact.
1. Material Defects: (1) Impact on total Major Defects: Resulting in economic
profit ≥ RMB 100 million. (2) Impact on losses to the enterprise exceeding 50
total assets ≥ RMB 4 billion. 2. Significant million RMB; Significant Defects:
Defects: (1) RMB 20 million ≤ Impact on Resulting in economic losses to the
Quantitative criteria total profit < RMB 100 million. (2) RMB 2.5 enterprise between 30 million RMB and
billion ≤ Impact on total assets < RMB 4 50 million RMB (inclusive); Minor
billion. 3. General Defects: (1) Impact on Defects: Resulting in economic losses to
total profit < RMB 20 million. (2) Impact on the enterprise between 10 million RMB
total assets < RMB 2.5 billion. and 30 million RMB (inclusive).Number of major defects in financial
reporting(a) 0
Number of major defects in non-financial
reporting (a) 0
59Bengang Steel Plates Co. Ltd. Annual Report 2025
Number of important defects in financial
reporting(a) 0
Number of important defects in
non-financial reporting(a) 0
2. Internal Control Audit Report
√ Applicable □ Not applicable
Opinion in the internal control audit report
As of December 31 2025 the internal control over financial reporting of Bengang Bancai is effective in all material aspects in
accordance with ‘Fundamental Rules of Enterprise Internal Control’ and relevant regulations.Internal Control Audit Report Status Disclosure
Disclosure date of audit report of internal
control (full-text) April 4 2026
Index of audit report of internal control
(full-text) http://www.cninfo.com.cn
Internal audit report’s opinion Standard unqualified opinion
Whether there is significant defect in
non-financial report No
Whether the accountants’ firm issued a qualified opinion on report of internal control audit
□ Yes √ No
Whether the internal control audit report issued by the accountants’ firm agree with the self-assessment report of
the Board of Directors
√ Yes □ No
Whether a non-standard audit opinion on internal controls issued during the reporting period or the preceding year
□ Yes √ No
XIV. Rectification of issues found in self-examination of special actions for listed company governance
During the reporting period the company actively implemented the instructions of the "Opinions of the State Council on Further
Improving the Quality of Listed Companies" and in accordance with the requirements of the "Announcement on Launching a
Special Action on the Governance of Listed Companies" (No. 69 2020) of the China Securities Regulatory Commission carried out
self-examination and self-correction of listed company governance in accordance with the principle of seeking truth from facts and
compiled the "Special Self-examination List of Listed Company Governance" which truly accurately and completely reflects the
legal problems of listed companies and the relevant regulatory rectifications. By strengthening the endogenous driving force of
corporate governance improving corporate governance system rules and building a good corporate governance ecology the
company has further improved the governance structure of listed companies with each performing its duties assuming its
responsibilities coordinating operations and effectively checking and balancing laying a solid foundation for the high-quality
development of listed companies and improving the governance level of listed companies.XV.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
Number of companies required by law to disclose environmental
9
information
Number Company name Link to environmental information disclosures
Benxi Iron & Steel Co. Ltd. Cold Rolling Mill (First Cold
1 https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
Rolling Area)
Benxi Iron & Steel Co. Ltd. Cold Rolling Mill (Third Cold
2 https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
Rolling Area)
3 Benxi Iron & Steel Co. Ltd. Steelmaking Plant https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
4 Benxi Steel Plate Co. Ltd. Ironmaking Sintering Branch https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
Benxi Steel Plate Co. Ltd. Ironmaking Plant Coking
5 https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
Branch
60Bengang Steel Plates Co. Ltd. Annual Report 2025
6 Special Steel Division Bengang Steel Plates Co. Ltd. https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
Bengang Steel Plates Co. Ltd. — Energy Management and
7 https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
Control Center (Power Generation Area)
Bengang Steel Plates Co. Ltd. — Energy Management and
8 https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
Control Center (Energy Plant Area)
9 Bengang POSCO Cold Rolled Sheet Co. Ltd. https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
XVI. Social responsibility
For details please refer to the 2025 Environmental Social and Governance (ESG) Report of Bengang Plate Co. Ltd.disclosed by the company on www.cninfo.com.cn on April 4 2026.XVII. Consolidation and expansion of poverty alleviation achievements and rural
revitalization
The company actively selects and dispatches outstanding cadres to dedicate themselves to rural revitalization efforts;
currently two such colleagues serve as "First Secretaries" stationed in local villages. Adhering strictly to work
requirements and tailoring their approach to the specific development realities of their assigned villages these stationed
cadres remain steadfast in their original aspirations and mission demonstrating a courageous sense of responsibility and
initiative. With unwavering determination and a pragmatic work ethic they have made solid progress in various key
tasks for 2025—including consolidating and expanding the achievements of poverty alleviation in their designated aid
villages and rigorously guarding against any relapse into poverty— thereby achieving excellent results. The company
remains consistently committed to fulfilling its social responsibilities; through targeted procurement initiatives—such as
direct purchasing and directing employee welfare spending toward specific goods— it prioritizes the acquisition of
unique agricultural and sideline products from its aid villages. This approach continuously fosters new drivers of
income growth for the collective village economy effectively stimulating a steady increase in the villagers' per capita
income. Consequently the company has been recognized for multiple consecutive years as an "Advanced Unit in
Targeted Poverty Alleviation" by Liaoning Province.
61Bengang Steel Plates Co. Ltd. Annual Report 2025
V. Important Events
I. Implementation of commitments
1. Commitments that the actual controller shareholders related parties acquirers and the company and
other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of the
reporting period
□Applicable □Not applicable
Commitment Type of Commitment Commitment
Commitments Contents Performance
party commitment time period
In order to maintain the
independence of Bengang
Plates Ansteel Group
promises as follows: 1.Ansteel Group guarantees to
keep separate from Bengang
Plates in terms of assets
personnel finance institutions
and business and strictly
abide by the relevant
Commitments regulations of the China
made in Securities Regulatory
acquisition Commission on the
reports or independence of listed
equity change companies and will not use
reports its controlling position to
Commitments interfere with the standardized
made in
acquisition Ansteel
operation of Bengang Plates
Other
Group Co. interfere with the business Aug 20commitment Long term In progressreports or
equity change Ltd.decisions of Bengang Plates 2021
s
or damage the legitimate
reports rights and interests of
Commitments Bengang Plates and other
made in shareholders. Ansteel Group
acquisition and its controlled subsidiaries
reports or guarantee not to illegally
equity change occupy the funds of Bengang
reports 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
62Bengang Steel Plates Co. Ltd. Annual Report 2025
compensation liability.To avoid horizontal
competition Ansteel Group
undertakes as follows: (1)
With regard to the overlap of
some businesses between
Ansteel Group and Bengang
Plates after the completion of
this acquisition in accordance
with the requirements of
current laws regulations and
relevant policies Ansteel
Group will within 5 years
from the date of this letter of
commitment and strive to
achieve the same within a
shorter period of time in
accordance with the
requirements of relevant
securities regulatory
authorities and on the
premise of complying with the
laws regulations and relevant
regulatory rules applicable at
that time and in line with the
principle of benefiting the
development of Bengang
Ansteel Plates and safeguarding theOther
Group Co. interests of shareholders Aug 20commitment Long term In progress
Ltd. especially the interests of 2021s
small and medium-sized
shareholders steadily promote
the integration of related
businesses to resolve
horizontal competition by
comprehensively using a
variety of methods such as
asset restructuring business
adjustments and entrusted
management. The above
solutions include but are not
limited to: 1) Asset
restructuring: adopt different
methods permitted by relevant
laws and regulations such as
cash consideration or issuance
of shares to purchase assets
asset replacement asset
transfer or other feasible
restructuring methods
gradually sort out and
reorganize the assets of
Ansteel Group and Bengang
Plate with overlapping
businesses and eliminate the
overlap of some businesses; 2)
Business adjustment: sort out
63Bengang Steel Plates Co. Ltd. Annual Report 2025
the business 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 Plates Ansteel
Group will make every effort
64Bengang Steel Plates Co. Ltd. Annual Report 2025
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 commitments: 1.Ansteel Group will ensure that
Bensteel Plates has
Ansteel Other independent business and
Group Co. Aug 20commitment complete assets and has Long term In progress
Ltd. 2021s independent and complete
production supply sales and
other supporting systems. 2.Ansteel Group and other
enterprises controlled by
Ansteel Group will not use
their control over Bensteel
Plates to seek priority in
transactions with Bensteel
65Bengang Steel Plates Co. Ltd. Annual Report 2025
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
accordance with the law.According to the relevant
Company regulations of the China
Commitment directors Securities Regulatory
made during senior Other Commission all directors and
May 22
initial public management/ commitment senior management of the Long term In progress
2019
offering or Benxi Steel s Company have made the
refinancing Group Co. following commitments to the
Ltd. Company’s fulfillment of the
diluted immediate return
66Bengang Steel Plates Co. Ltd. Annual Report 2025
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. 4. I promise not to
use the Company’s assets to
do investment and
consumption activities that are
not related to the performance
of my duties. 5. Within the
scope of my responsibilities
and authority I promise to
make every effort to promote
the company's board of
directors or the remuneration
system established by the
remuneration and appraisal
committee to be linked to the
implementation of the
company's compensation
measures and vote in favor of
the relevant proposals
reviewed by the company's
board of directors and general
meeting (If I have voting
rights). 6. If the company
intends to implement equity
incentives I promise to
within my own
responsibilities and
jurisdiction make every effort
to promote the Company’s
proposed equity incentive
exercise conditions to be
linked to the Company’s
implementation of the return
measures and to review the
Company’s board of directors
and shareholders’ general
meetings and vote in favor of
the relevant proposals
reviewed by the company's
board of directors and general
meeting (If I have voting
rights). 7. If the future
67Bengang Steel Plates Co. Ltd. Annual Report 2025
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.
1. Bengang International
trade Co. Ltd. and Bengang
Steel Plates Co. Ltd.'s sales
companies in the same region
guarantee personnel
independence business
independence financial
independence and asset
independence and guarantee
that they are not in the same
place of registration and never
work in the same office; 2. In
view of the fact that Bengang
Steel Plates Co. Ltd. has
Bengang recently completed the
Group Co.Other registration of foreign trade
Ltd. and
commitment operators and considering
Benxi Steel that the qualification level
July 242019 Long term In progress
s
Group Co. certification of raw material
Ltd. suppliers and customs importand export qualification level
certification still need to be
gradually improved it lacks
the actual conditions and
capabilities to independently
carry out import and export
business in the short term. In
order to ensure the normal
business development of
Bengang Steel Plates Co.Ltd. the Group agrees that
Bengang International Trade
Co. Ltd. will continue to act
as the agent for the main
68Bengang Steel Plates Co. Ltd. Annual Report 2025
import and export business of
Bengang Steel Plates Co. Ltd.within a period of no more
than 5 years from the date of
issuance of this commitment
until Bengang Steel Plates
Co. Ltd. believes that it can
independently carry out
import and export business
and during this period
Bengang International Trade
Co. Ltd. will provide
necessary support for
Bengang Steel Plates Co. Ltd.to establish and improve its
import and export business. In
addition Bengang
International Trade Co. Ltd.'s
sales companies are only
responsible for selling the
products of Beiying Steel &
Irom Group and never sell
third-party steel products. 3.The three sales companies of
the Group namely Shanghai
Bengang Steel Sales Co. Ltd.Shanghai Bengang Steel
Materials Co. Ltd. and
Guangzhou Bonded Zone
Bengang Sales Co. Ltd. are
no longer actually engaged in
any business activities. The
specific details are as follows:
(1) Shanghai Bengang Steel
Trading Co. Ltd. filed for
bankruptcy in 2014. The
People's Court of Changning
District Shanghai issued an
announcement to appoint
Grandall Law Firm
(Shanghai) as the bankruptcy
administrator. After
communicating with the
bankruptcy administrator the
relevant procedures for the
cancellation of Shanghai
Bengang Steel Sales Co. Ltd.will be handled immediately
after the completion of the
aforementioned bankruptcy
liquidation procedures. (2)
Shanghai Bengang Steel
Materials Co. Ltd. is a
holding subsidiary of
Shanghai Bengang Steel
Trading Co. Ltd. and was
cancelled in November 2020.
(3) Guangzhou Bonded Zone
Bengang Sales Co. Ltd. was
cancelled in July 2022.Bengang Benxi Steel Group Co. Ltd.Group Co. and Bengang Group Co. Ltd.Other
Ltd. and (hereinafter collectively
commitment July 242019 Long term In progress
Benxi Steel referred to as the "Group") as
s
Group Co. the direct and indirect
Ltd. controlling shareholders of
69Bengang Steel Plates Co. Ltd. Annual Report 2025
Bengang Steel Plates Co. Ltd.(hereinafter referred to as
"Bengang Plate") hereby
make the following
commitments to avoid
horizontal competition: 1.During the period when the
Group serves as the
controlling shareholder of
Bengang Plate the Group and
other enterprises controlled by
the Group except Bengang
Plate will no longer produce
or develop any products that
compete or may compete with
the products produced by
Bengang Plate and its
subsidiaries at home and
abroad will not directly or
indirectly operate any
business that competes or may
compete with the business
operated by Bengang Plate
and its subsidiaries and will
not participate in the
investment in any other
enterprises that compete or
may compete with the
products produced or
businesses operated by
Bengang Plate and its
subsidiaries. 2. If Bengang
Plates and its subsidiaries
further expand their business
scope the Group and other
enterprises controlled by the
Group will not compete with
the expanded business of
Bengang Plates and its
subsidiaries; if there is a
possibility of competition
with the expanded business of
Bengang Plates and its
subsidiaries they will
withdraw from the
competition with Bengang
Plates in the following ways:
(1) stop the business that
competes or may compete
with Bengang Plates and its
subsidiaries; (2) incorporate
the competing business into
Bengang Plates and its
subsidiaries in a legal and
compliant manner; (3) transfer
the competing business to an
unrelated third party. 3. If the
70Bengang Steel Plates Co. Ltd. Annual Report 2025
Group has any business
opportunity to engage in or
participate in activities that
may compete with the
business operations of
Bengang Plates the Group
shall immediately notify
Bengang Plates of the above
business opportunity. If
Bengang Plates responds
affirmatively within a
reasonable period specified in
the notification that it is
willing to utilize the business
opportunity the Group will
try its best to provide the
business opportunity to
Bengang Plates on terms no
less favorable than those
provided to any independent
third party. 4. If the above
commitments are violated the
Group is willing to bear all the
responsibilities arising
therefrom and fully
compensate or indemnify
Bengang Plates for all direct
or indirect losses caused
thereby. 5. This letter of
commitment shall remain
valid and cannot be changed
or revoked during the period
when the Group serves as the
controlling shareholder of
Bengang Plates.Benxi Steel Group Co. Ltd.and Bengang Group Co. Ltd.(hereinafter collectively
referred to as "the Group") as
the direct and indirect
controlling shareholders of
Bengang Steel Plates Co. Ltd.(hereinafter referred to as
"Bengang Plate") hereby
Bengang promise to regulate the relatedtransactions between the
Group Co.Other Group and Bengang Plate: 1.Ltd. and
commitment The Group will fully respect
Benxi Steel the independent legal person
July 242019 Long term In progress
s
Group Co. status of Bengang Plate
Ltd. guarantee the independent
operation and independent
decision-making of Bengang
Plate ensure the business
independence asset integrity
personnel independence and
financial independence of
Bengang Plate so as to avoid
and reduce unnecessary
related transactions; the
Group will strictly control the
71Bengang Steel Plates Co. Ltd. Annual Report 2025
related transactions between
Bengang Plate and its
subsidiaries. 2. The Group and
other companies controlled by
it promise not to occupy or
misappropriate the funds of
Bengang Plate and its
subsidiaries by borrowing
repaying debts advancing
funds or other means nor
require Bengang Plate and its
subsidiaries to provide illegal
guarantees for the Group and
other companies controlled by
it. 3. The Group and other
companies controlled by it
will minimize related
transactions with Bengang
Plate. When conducting
related transactions that are
truly necessary and
unavoidable the
decision-making authority
decision-making procedures
and avoidance system
stipulated in the Articles of
Association of Bengang Plates
and the decision-making
system for related transactions
shall be strictly implemented
the role of the Supervisory
Board and independent
directors shall be fully
utilized and the information
disclosure obligations shall be
conscientiously fulfilled to
ensure that transactions are
conducted in accordance with
the principles of openness
fairness and equity in market
transactions and normal
commercial terms. The Group
and other companies
controlled by it will not
require or accept Bengang
Plates to provide more
favorable conditions than any
third party in any fair market
transaction and protect the
interests of other shareholders
of Bengang Plates and
Bengang Plates from being
harmed. 4. The Group
guarantees that the above
commitments will remain
valid and irrevocable during
the period when the Group is
listed on the domestic stock
exchange and the Group is its
direct and indirect controlling
shareholder. If any violation
of the above commitments
occurs the Group shall bear
all losses caused to Bengang
Plates.Whether Yes
72Bengang Steel Plates Co. Ltd. Annual Report 2025
Commitment
fulfilled on
time or not
2. If the company's assets or projects have profit forecasts and the reporting period is still within the profit
forecast period the company shall explain whether the assets or projects have achieved the original profit
forecast and the reasons for this.□Applicable□Not applicable
3. The Company is subject to performance commitments.
□Applicable□Not applicable
II. Non-operating capital occupation of listed companies by controlling shareholders and
other related parties
□Applicable□Not applicable
During the reporting period there was no non-operating capital occupation of the listed company by the controlling shareholder or
other related parties.III. Illegal external guarantees
□Applicable□Not applicable
The company did not provide any illegal external guarantees during the reporting period.IV. The Board of Directors’ Statement on the Latest “Non-standard Audit Report”
□Applicable□Not applicable
V. Explanation of the Board of Directors the Board of Supervisors and the Independent
Directors (if any) on the “Non-standard Audit Report” of the Accounting Firm during the
Reporting Period
□Applicable□Not applicable
VI. Description of changes in accounting policies accounting estimates or corrections of
significant accounting errors compared with the previous year's financial report
□Applicable□Not applicable
During the reporting period there is no significant changes in accounting policies or accounting estimates. There is no corrections of
material accounting errors.VII. Explanation of changes in the scope of the consolidated financial statements compared
with the previous year's financial report
73Bengang Steel Plates Co. Ltd. Annual Report 2025
□Applicable □Not applicable
1. Establishment of a New Subsidiary: In 2025 the Company in conjunction with its related party Angang Green Gold Industry
Development Co. Ltd. jointly invested to establish Green Gold (Benxi) Renewable Resources Co. Ltd. Of the total investment the
Company contributed RMB 30.60 million using its own funds thereby holding a 51% equity stake in the joint venture. Upon the
completion of this joint investment the joint venture became a controlled subsidiary of the Company and was included within the
scope of the Company's consolidated financial statements.
2. Deregistration of Subsidiary: Changchun Benxi Steel Sales Co. Ltd. has been absorbed and merged by its wholly-owned
subsidiary Shenyang Benxi Steel Metallurgy Technology Co. Ltd. and has simultaneously been deregistered.VIII . Appointment and dismissal of accounting firms
Accountant’s firm currently appointed
Name of domestic accounting firm BDO China Shu Lun Pan Certified Public Accountants LLP
Remuneration of domestic accounting firm (RMB 10 thousand) 295
Continuous years of audit services provided by domestic
3
accounting firm
Name of domestic certified public accountant Guo Shunxi Fu Yangyi
Continuous years of audit services provided by domestic
2 years for Guo Shunxi 3 years for Fu Yangyi
certified public accountant
Name of foreign accounting firm (if any) Not applicable
Continuous years of audit services provided by foreign
Not applicable
accounting firm (if any)
Name of foreign certified public accountant (if any) Not applicable
Continuous years of audit services provided by foreign certified
Not applicable
public accountant (if any)
Whether to hire a new accounting firm during the current period
□Yes□No
Employment of internal control audit accounting firms financial advisors or sponsors
?Applicable□Not applicable
This year the company hired BDO China Shu Lun Pan Certified Public Accountants LLP as its internal control audit accounting firm
and the audit fee was RMB 600000.IX. Situations of delisting after the disclosure of the annual report
□Applicable□Not applicable
X. Bankruptcy and reorganization related matters
□Applicable□Not applicable
The company did not have any bankruptcy reorganization related matters during the reporting period.XI. Major litigation and arbitration matters
74Bengang Steel Plates Co. Ltd. Annual Report 2025
?Applicable□Not applicable
Basic Amount Whether Results and Execution of
Progress of
information involved (in estimated impact of litigation Date of Disclosure
litigation
of litigation 10 thousand liabilities are litigation (arbitration) disclosure index
(arbitration)
(arbitration) yuan) formed (arbitration) judgment
Summary of
matters
where the
company
Handle
does not
according to
meet the 2039 None Under review None
legal
disclosure
provisions
standards for
major
litigation
(arbitration)
XII . Penalties and Rectification
□Applicable□ Not applicable?
The Company was not subject to any penalties or rectification requirements during the reporting period.XIII. Integrity of the company and its controlling shareholders and actual controllers
□Applicable□Not applicable
75Bengang Steel Plates Co. Ltd. Annual Report 2025
XIV. Major Related-Party Transactions
1. Related-party transactions related to daily operations
?Applicable□Not applicable
The
Pricing Amount Proporti Wheth Settleme marke
Related principl of on of er the nt t price
party es of Related Affiliated the
Approved appro method of
Related party Relationsh Transactio
transaction
ip ns type transacti related
party amount ved of simila Disclosure Disclosure
on party transaction
Transactio of amount (tenn (ten thousand quota related r date index
content transacti price thousand similar yuan) is party transa
ons Yuan) transacti excee transacti ctionsons ded ons availa
ble
Purchase Procure
Angang Scrap Belongs to of ment of Market- Related-Part Accordi
Resources Angang Goods/Ac Major oriented y 36613.51 0.76% 309360.00 No ng to the(Anshan) Co. Group ceptance Raw principl Agreement agreeme Yes 06/12/2024 2024-067
Ltd. Co. Ltd. of Material es Price nt
Services s
Purchase Procure
Anshan Iron Belongs to of ment of Market- Related-Part Accordi
and Steel Group Angang Goods/Ac Major oriented y 23204.97 0.48% 84078.30 No ng to theGroup ceptance Raw principl Agreement agreeme Yes 06/12/2024 2024-067Co. Ltd. Co. Ltd. of Material es Price nt
Services s
Purchase Procure
Benxi Beiying Belongs to of ment of Market- Related-Part Accordi
Iron and Steel Bengang Goods/Ac Major oriented y ng to the
(Group) Co. Group ceptance Raw principl Agreement 1259873.70 26.07% 1312173.81 No agreeme Yes 06/12/2024 2024-067
Ltd. Co. Ltd. of Material es Price nt
Services s
Benxi Iron and Purchase Procure
Steel (Group) Same of ment of Market- Related-Part Accordi
Machinery parent Goods/Ac Major oriented y 709.72 0.01% 10200.00 No ng to the Yes 06/12/2024 2024-067
Manufacturing company ceptance Raw principl Agreement agreeme
Co. Ltd. of Material es Price ntServices s
76Bengang Steel Plates Co. Ltd. Annual Report 2025
The
Pricing Amount Proporti Wheth Settleme marke
Related principl of on of Approved er the nt t price
Relationsh Transactio party es of
Related
party Affiliated
the
amount transaction
appro method of
Related party ip ns type transacti related transaction Transactio of amount (ten
ved of simila Disclosure Disclosure
on party n (ten thousand quota related r date index
content transacti price thousand similar yuan) is party transa
ons Yuan) transacti excee transacti ctionsons ded ons availa
ble
Purchase Procure
Benxi Iron and of ment of Market- Related-Part Accordi
Steel (Group) Sameparent Goods/Ac Major oriented yConstruction ceptance Raw principl Agreement 10546.80 0.22% 24006.08 No
ng to the
company agreeme
Yes 06/12/2024 2024-067
Co. Ltd. of Material es Price nt
Services s
Purchase Procure
Benxi Iron and Same of ment of Market- Related-Part AccordiSteel (Group) parent Goods/Ac Major oriented yMining Co. ceptance Raw principl Agreement 617686.09 12.78% 745244.00 No
ng to the
agreeme Yes 06/12/2024 2024-067
Ltd. company of Material es Price nt
Services s
Benxi Steel Purchase Procure
Group Same of ment of Market- Related-Part Accordi
Equipment parent Goods/Ac Major oriented yceptance Raw principl Agreement 590.43 0.01% 1000.00 No
ng to the
agreeme Yes 06/12/2024 2024-067Engineering company
Co. Ltd. of Material es Price ntServices s
Purchase Procure
Benxi Steel of ment of Market- Related-Part Accordi
Group Industrial Same
Development parent
Goods/Ac Major oriented y
ceptance Raw principl Agreement 24231.31 0.50% 37400.00 No
ng to the
agreeme Yes 06/12/2024 2024-067
Co. Ltd. company of Material es Price nt
Services s
Purchase Procure
Benxi Iron and of ment of Market- Related-Part Accordi
Steel (Group) Parent Goods/Ac Major oriented y 76.28 0.00% 900 No ng to the Yes 06/12/2024 2024-067
Co. LTD company ceptance Raw principl Agreement agreemeof Material es Price nt
Services s
77Bengang Steel Plates Co. Ltd. Annual Report 2025
The
Pricing Amount Proporti Wheth Settleme marke
Related principl of on of Approved er the nt t priceRelated
Relationsh Transactio party es of party Affiliated
the
amount transaction
appro method of
Related party transacti related Transactio amount (ten ved of simila Disclosure Disclosureip ns type on party transactionprice n (ten
of thousand quota related r date index
content transacti thousand similar is party transa
ons Yuan) transacti
yuan) excee transacti ctions
ons ded ons availa
ble
Purchase Procure
Lingyuan Iron Belongs to of ment of Market- Related-Part Accordi
& Steel Group Angang Goods/Ac Major oriented y ng to theGroup ceptance Raw principl Agreement 926.82 0.02% 0 Yes agreeme Yes 06/12/2024 2024-067Co. Ltd. Co. Ltd. of Material es Price nt
Services s
Purchase Procure
Angang Steel Belongs to of ment of Market- Related-Part Accordi
Company Angang Goods/Ac Auxiliar oriented y ng to the
Limited Group ceptance y principl Agreement
441.84 0.01% 2500.00 No agreeme Yes 06/12/2024 2024-067
Co. Ltd. of Material es Price nt
Services s
Angang Group Purchase Procure
Zhongyuan Belongs to of ment of Market- Related-Part Accordi
Industrial Angang Goods/Ac Auxiliar oriented yGroup ceptance y principl Agreement 1456.69 0.03% 1500.00 No
ng to the
agreeme Yes 06/12/2024 2024-067Development
Co. Ltd. Co. Ltd. of Material es Price ntServices s
Angang Digital Purchase Procure
Intelligence Belongs to of ment of Market- Related-Part Accordi
Technology Angang Goods/Ac Auxiliar oriented y ng to the
(Liaoning) Co. Group ceptance y principl Agreement
15263.26 0.32% 31323.24 No agreeme Yes 06/12/2024 2024-067
Ltd. Co. Ltd. of Material es Price ntServices s
Purchase Procure
Anshan Iron Belongs to of ment of Market- Related-Part Accordi
and Steel Group Angang Goods/Ac Auxiliar oriented y ng to the
Co. Ltd. Group ceptance y principl Agreement
8564.16 0.18% 10800.51 No agreeme Yes 06/12/2024 2024-067
Co. Ltd. of Material es Price nt
Services s
78Bengang Steel Plates Co. Ltd. Annual Report 2025
The
Pricing Amount Proporti Wheth Settleme marke
Related principl on of er the nt t price
party es of Related
of the Approved appro method of
Related party Relationsh Transactio
Affiliated transaction
transacti related party Transactio amount amount (ten ved of simila Disclosure Disclosureip ns type on party transactionprice n (ten
of quota related r date index
content transacti thousand similar
thousand
yuan) is party transa
ons Yuan) transacti excee transacti ctionsons ded ons availa
ble
Purchase Procure
Benxi Beiying Belongs to of ment of Market- Related-Part Accordi
Iron and Steel Bengang Goods/Ac Auxiliar oriented y ng to the
(Group) Co. Group ceptance y principl Agreement 740.01 0.02% 4001.54 No agreeme Yes 06/12/2024 2024-067
Ltd. Co. Ltd. of Material es Price nt
Services s
Benxi Iron and Purchase Procure
Steel (Group) Same of ment of Market- Related-Part Accordi
Machinery parent Goods/Ac Auxiliar oriented yceptance y principl Agreement 37868.16 0.78% 34650.12 Yes
ng to the
agreeme Yes 06/12/2024 2024-067Manufacturing company
Co. Ltd. of Material es Price ntServices s
Purchase Procure
Benxi Iron and Same of ment of Market- Related-Part AccordiSteel (Group)
Construction parent
Goods/Ac Auxiliar oriented y 469.37 0.01% 1600.00 No ng to the Yes 06/12/2024 2024-067
Co. Ltd. company
ceptance y principl Agreement agreeme
of Material es Price nt
Services s
Benxi Steel Purchase Procure
Group Same of ment of Market- Related-Part Accordi
Equipment parent Goods/Ac Auxiliar oriented yceptance y principl Agreement 11489.52 0.24% 14000.00 No
ng to the
agreeme Yes 06/12/2024 2024-067Engineering company
Co. Ltd. of Material es Price ntServices s
Purchase Procure
Benxi Steel of ment of Market- Related-Part Accordi
Group Industrial Sameparent Goods/Ac Auxiliar oriented y ng to theDevelopment ceptance y principl Agreement 17209.48 0.36% 23143.12 No agreeme Yes 06/12/2024 2024-067
Co. Ltd. company of Material es Price nt
Services s
79Bengang Steel Plates Co. Ltd. Annual Report 2025
The
Pricing Amount Proporti Wheth Settleme marke
Related principl of on of Approved er the nt t price
party es of Related Affiliated the transaction appro method of
Related party Relationsh Transactio transacti related party Transactio amount amount (ten ved of simila Disclosure Disclosureip ns type on party transaction n (ten of thousand quota related r date index
content transacti price thousand similartransacti yuan)
is party transa
ons Yuan) excee transacti ctionsons ded ons availa
ble
Purchase Procure
Benxi Iron and of ment of Market- Related-Part Accordi
Steel (Group) Parent Goods/Ac Auxiliar oriented y ng to the
Co. LTD company ceptance y principl Agreement
21131.57 0.44% 23571.90 No agreeme Yes 06/12/2024 2024-067
of Material es Price nt
Services s
Purchase Procure
Belongs to of ment of Market- Related-Part Accordi
Pangang Group Angang Goods/Ac Auxiliar oriented y ng to the
Co. Ltd. Group ceptance y principl Agreement 924.08 0.02% 1000.00 No agreeme Yes 06/12/2024 2024-067
Co. Ltd. of Material es Price nt
Services s
Purchase Procure
Other Belongs to of ment of Market- Related-Part Accordi
Subsidiaries of Angang Goods/Ac Auxiliar oriented yGroup ceptance y principl Agreement 39918.35 0.83% 40157.20 No
ng to the Yes 06/12/2024 2024-067
Ansteel Group agreemeCo. Ltd. of Material es Price nt
Services s
Purchase
Benxi Beiying Belongs to of Procure
Iron and Steel Bengang Goods/Ac ment of
Market- Related-Part Accordi
Energy oriented y ng to the(Group) Co. Group ceptance principl Agreement 71419.50 1.48% 63382.58 Yes agreeme Yes 06/12/2024 2024-067
Ltd. Co. Ltd. of and
Services Power
es Price nt
Purchase
of ProcureBenxi Iron and Market- Related-Part Accordi
Steel (Group) Parent Goods/Ac
ment of
Energy oriented y ng to the
Co. LTD company ceptance and principl Agreement
11.29 0.00% 23 No agreeme Yes 06/12/2024 2024-067
of Power es Price ntServices
80Bengang Steel Plates Co. Ltd. Annual Report 2025
The
Pricing Amount Proporti Wheth Settleme marke
Related principl of on ofRelated the Approved
er the nt t price
appro method of
Related party Relationsh Transactio
party es of Affiliated transaction
ip ns type transacti related
party amount ved of simila Disclosure Disclosure
on party transaction
Transactio amount (ten
n (ten of thousand quota related r date index
content transacti price thousand similar yuan) is party transa
ons Yuan) transacti excee transacti ctionsons ded ons availa
ble
Purchase
Other Belongs to of
Procure
ment of Market- Related-Part Accordi
Subsidiaries of Angang Goods/Ac oriented y ng to the
Ansteel Group Group ceptance
Energy principl Agreement 13915.12 0.29% 0 Yes agreeme Yes 06/12/2024 2024-067
Co. Ltd. of and es Price nt
Services Power
Purchase
Angang Group Belongs to of Receive Market- Related-Part Accordi
Engineering Angang Goods/Ac Supporti oriented y ng to the
Technology Group ceptance ve principl Agreement 5353.89 0.11% 5800.00 No agreeme Yes 06/12/2024 2024-067
Co. Ltd. Co. Ltd. of Services es Price nt
Services
Purchase
Angang Group Belongs to of Receive Market- Related-Part Accordi
Automation Angang Goods/Ac Supporti oriented y ng to the
Co. Ltd. Group ceptance ve principl Agreement
160 0.00% 500 No agreeme Yes 06/12/2024 2024-067
Co. Ltd. of Services es Price nt
Services
Purchase
Anshan Iron Belongs to of Receive Market- Related-Part Accordi
and Steel Group Angang Goods/Ac Supporti oriented y ng to the
Co. Ltd. Group ceptance ve principl Agreement
17553.68 0.36% 27204.87 No agreeme Yes 06/12/2024 2024-067
Co. Ltd. of Services es Price nt
Services
Purchase
Bengang Group Belongs to of Receive Market- Related-Part Accordi
International Bengang Goods/Ac Supporti oriented y ng to the
Economic and Group ceptance ve principl Agreement 331.71 0.01% 975.76 No agreeme Yes 06/12/2024 2024-067
Trade Co. Ltd. Co. Ltd. of Services es Price nt
Services
81Bengang Steel Plates Co. Ltd. Annual Report 2025
The
Pricing Amount Proporti Wheth Settleme marke
Related principl of on of Approved er the nt t priceRelated
Relationsh Transactio party es of party Affiliated
the
amount transaction
appro method of
Related party transacti related Transactio amount (ten ved of simila Disclosure Disclosureip ns type on party transactionprice n (ten
of thousand quota related r date index
content transacti thousand similar is party transa
ons Yuan) transacti
yuan) excee transacti ctions
ons ded ons availa
ble
Parent Purchase
company's of Receive Market- Related-Part Accordi
Bengang Group controllin Goods/Ac Supporti oriented y
Co. Ltd. g ceptance ve principl Agreement 29783.07 0.62% 32000.00 No
ng to the
agreeme Yes 06/12/2024 2024-067
sharehold of Services es Price nt
er Services
Purchase
Benxi Beiying Belongs to of Receive Market- Related-Part Accordi
Iron and Steel Bengang Goods/Ac Supporti oriented y ng to the
(Group) Co. Group ceptance ve principl Agreement 11383.52 0.24% 12294.20 No agreeme Yes 06/12/2024 2024-067
Ltd. Co. Ltd. of Services es Price nt
Services
Purchase
Benxi Steel and Belongs to of Receive Market- Related-Part Accordi
Iron(Group)Ten Angang Goods/Ac Supporti oriented yGroup ceptance ve principl Agreement 49798.78 1.03% 60000.00 No
ng to the
agreeme Yes 06/12/2024 2024-067gda Co.Ltd. Co. Ltd. of Services es Price nt
Services
Benxi Iron and Purchase
Steel (Group) Same of Receive Market- Related-Part Accordi
Machinery parent Goods/Ac Supporti oriented y 10089.74 0.21% 13320.43 No ng to the Yes 06/12/2024 2024-067
Manufacturing company ceptance ve principl Agreement agreeme
Co. Ltd. of Services es Price ntServices
Purchase
Benxi Iron and of Receive Market- Related-Part Accordi
Steel (Group) Same Goods/Ac Supporti oriented y ng to the
Construction parentcompany ceptance ve principl Agreement
32908.04 0.68% 39434.92 No agreeme Yes 06/12/2024 2024-067
Co. Ltd. of Services es Price nt
Services
82Bengang Steel Plates Co. Ltd. Annual Report 2025
The
Pricing Amount Proporti Wheth Settleme marke
Related principl of on of Approved er the nt t priceRelated the appro method of
Related party Relationsh Transactio
party es of party Affiliated amount transactiontransacti related Transactio amount (ten ved of simila Disclosure Disclosureip ns type on party transaction n (ten of thousand quota related r date index
content transacti price thousand similar is party transa
ons Yuan) transacti
yuan) excee transacti ctions
ons ded ons availa
ble
Benxi Steel Purchase
Group Same of Receive Market- Related-Part Accordi
Equipment parent Goods/Ac Supporti oriented yceptance ve principl Agreement 80900.74 1.67% 113937.73 No
ng to the
agreeme Yes 06/12/2024 2024-067Engineering company
Co. Ltd. of Services es Price ntServices
Purchase
Benxi Steel of Receive Market- Related-Part Accordi
Group Industrial Sameparent Goods/Ac Supporti oriented y ng to theDevelopment company ceptance ve principl Agreement
1742.78 0.04% 2300.00 No agreeme Yes 06/12/2024 2024-067
Co. Ltd. of Services es Price nt
Services
Purchase
Benxi Iron and of Receive Market- Related-Part Accordi
Steel (Group) Parent Goods/Ac Supporti oriented y 9771.67 0.20% 8818.12 Yes ng to the
Co. LTD company ceptance ve principl Agreement agreeme
Yes 06/12/2024 2024-067
of Services es Price nt
Services
Purchase
Other Belongs to of Receive Market- Related-Part Accordi
Subsidiaries of Angang Goods/Ac Supporti oriented y 39875.24 0.83% 35163.12 Yes ng to theGroup ceptance ve principl Agreement agreeme Yes 06/12/2024 2024-067Ansteel Group Co. Ltd. of Services es Price nt
Services
Angang Steel Belongs to Sale of Market- Related-Part Accordi
Company Angang Goods/Re Sale of oriented y 609.31 0.01% 285600.00 No ng to the
Limited Group ndering of Goods principl Agreement agreeme
Yes 06/12/2024 2024-067
Co. Ltd. Services es Price nt
Angang Belongs to Sale of Market- Related-Part Accordi
Chemical Angang Goods/Re Sale of oriented y ng to the
Technology Group ndering of Goods principl Agreement 23462.34 0.51% 30000.00 No agreeme Yes 06/12/2024 2024-067
Co. Ltd. Co. Ltd. Services es Price nt
83Bengang Steel Plates Co. Ltd. Annual Report 2025
The
Pricing Amount Proporti Wheth Settleme marke
Related principl of on ofRelated the Approved
er the nt t price
Relationsh Transactio party es of party Affiliated transaction
appro method of
Related party ip ns type transacti related transaction Transactio
amount
of amount (ten
ved of simila Disclosure Disclosure
on party n (ten thousand quota related r date index
content transacti price thousand similar is party transa
ons Yuan) transacti
yuan) excee transacti ctions
ons ded ons availa
ble
Angang Group Belongs to Sale of Market- Related-Part Accordi
Engineering Angang Goods/Re Sale of oriented y ng to the
Technology Group ndering of Goods principl Agreement 0.88 0.00% 500 No agreeme Yes 06/12/2024 2024-067
Co. Ltd. Co. Ltd. Services es Price nt
Other Belongs to Sale of Market- Related-Part Accordi
Subsidiaries of Angang Goods/Re Sale of oriented y ng to the
Ansteel Group Group ndering of Goods principl Agreement
6962.75 0.15% 6000.00 Yes agreeme Yes 06/12/2024 2024-067
Co. Ltd. Services es Price nt
Angang Group
Zhongyuan Belongs to Sale of Market- Related-Part Accordi
Industrial Angang Goods/Re Sale of oriented y ng to theGroup ndering of Goods principl Agreement 2826.88 0.06% 9894.17 No agreeme Yes 06/12/2024 2024-067Development
Co. Ltd. Co. Ltd. Services es Price nt
Angang Digital
Intelligence Belongs to Sale of Market- Related-Part Accordi
Technology Angang Goods/Re Sale of oriented y ng to theGroup ndering of Goods principl Agreement 38.21 0.00% 100 No agreeme Yes 06/12/2024 2024-067(Liaoning) Co.Ltd. Co. Ltd. Services es Price nt
Angang Belongs to Sale of Market- Related-Part Accordi
Resources Co. Angang Goods/Re Sale of oriented y ng to theGroup ndering of Goods principl Agreement 2734.69 0.06% 9340.00 No agreeme Yes 06/12/2024 2024-067Ltd. Co. Ltd. Services es Price nt
Anshan Iron Belongs to Sale of Market- Related-Part Accordi
and Steel Group Angang Goods/Re Sale of oriented y 25145.52 0.54% 47960.00 No ng to the
Co. Ltd. Group ndering of Goods principl Agreement agreeme
Yes 06/12/2024 2024-067
Co. Ltd. Services es Price nt
Parent Sale of Market- Related-Part Accordi
Bengang Group company's Goods/Re Sale of oriented y ng to the
Co. Ltd. controllin ndering of Goods principl Agreement 277.57 0.01% 654.92 No agreeme Yes 06/12/2024 2024-067
g Services es Price nt
84Bengang Steel Plates Co. Ltd. Annual Report 2025
The
Pricing Amount Proporti Wheth Settleme marke
Related principl of on of Approved er the nt t price
Relationsh Transactio party es of
Related Affiliated the transaction appro method of
Related party transacti related party Transactio amount amount (ten ved of simila Disclosure Disclosureip ns type on party transaction n (ten of thousand quota related r date index
content transacti price thousand similartransacti yuan)
is party transa
ons Yuan) excee transacti ctionsons ded ons availa
ble
sharehold
er
Benxi Beiying Belongs to Sale of Market- Related-Part Accordi
Iron and Steel Bengang Goods/Re Sale of oriented y ng to the
(Group) Co. Group ndering of Goods principl Agreement 35898.83 0.77% 113375.52 No agreeme Yes 06/12/2024 2024-067
Ltd. Co. Ltd. Services es Price nt
Benxi Iron and
Steel (Group) Same Sale of Market- Related-Part Accordi
Machinery parent Goods/Re Sale of oriented y 5114.90 0.11% 15560.67 No ng to the
Manufacturing company ndering of Goods principl Agreement agreeme
Yes 06/12/2024 2024-067
Co. Ltd. Services es Price nt
Benxi Iron and
Steel (Group) Same
Sale of Market- Related-Part Accordi
parent Goods/Re Sale of oriented yConstruction ndering of Goods principl Agreement 233.51 0.01% 782.73 No
ng to the
company agreeme
Yes 06/12/2024 2024-067
Co. Ltd. Services es Price nt
Benxi Iron and Same Sale of Market- Related-Part AccordiSteel (Group) Goods/Re Sale of oriented y ng to the
Mining Co. parent 28213.84 0.61% 30458.89 Nocompany ndering of Goods principl Agreement agreeme
Yes 06/12/2024 2024-067
Ltd. Services es Price nt
Benxi Steel
Group Same Sale of Market- Related-Part Accordi
Equipment parent Goods/Re Sale of oriented yndering of Goods principl Agreement 232.23 0.01% 1000.00 No
ng to the
agreeme Yes 06/12/2024 2024-067Engineering company
Co. Ltd. Services es Price nt
Benxi Steel Sale of Market- Related-Part Accordi
Group Industrial Same Goods/Re Sale of oriented y ng to the
Development parentcompany ndering of Goods principl Agreement
12254.18 0.26% 19050.00 No agreeme Yes 06/12/2024 2024-067
Co. Ltd. Services es Price nt
85Bengang Steel Plates Co. Ltd. Annual Report 2025
The
Pricing Amount Proporti Wheth Settleme marke
Related principl of on ofRelated the Approved
er the nt t price
appro method of
Related party Relationsh Transactio
party es of Affiliated transaction
ip ns type transacti related
party Transactio amounttransaction of amount (ten
ved of simila Disclosure Disclosure
on party n (ten thousand quota related r date index
content transacti price thousand similar yuan) is party transa
ons Yuan) transacti excee transacti ctionsons ded ons availa
ble
Benxi Iron and Sale of Market- Related-Part Accordi
Steel (Group) Parent Goods/Re Sale of oriented y ng to the
Co. LTD company ndering of Goods principl Agreement
7154.98 0.15% 16484.66 No agreeme Yes 06/12/2024 2024-067
Services es Price nt
Delin Land Port Belongs to Sale of Market- Related-Part Accordi
Supply Chain Angang Goods/Re Sale of oriented y
Services Co. Group ndering of Goods principl Agreement 301880.72 6.51% 417298.97 No
ng to the
agreeme Yes 06/12/2024 2024-067
Ltd Co. Ltd. Services es Price nt
Belongs to Sale of Market- Related-Part Accordi
Pangang Group Angang Goods/Re Sale of oriented y ng to the
Co. Ltd. Group ndering of Goods principl Agreement 1851.07 0.04% 27300.00 No agreeme Yes 06/12/2024 2024-067
Co. Ltd. Services es Price nt
Anshan Iron Belongs to Sale of Provide Market- Related-Part Accordi
and Steel Group Angang Goods/Re supporti oriented y ng to the
Co. Ltd. Group ndering of ve principl Agreement
1.58 0.00% 9967.20 No agreeme Yes 06/12/2024 2024-067
Co. Ltd. Services services es Price nt
Other Belongs to Sale of Provide Market- Related-Part Accordi
Subsidiaries of Angang Goods/Re supporti oriented y ng to theGroup ndering of ve principl Agreement 1165.80 0.03% 580 Yes agreeme Yes 06/12/2024 2024-067Ansteel Group Co. Ltd. Services services es Price nt
Total -- -- 2960994.68 -- 4169672.28 -- -- -- -- --
Details of any sales return of a large amount Not applicable
Actual performance of the estimated total amount of daily related transactions to
occur in the current period during the reporting period by category (if any) Not applicable
Reason for any significant difference between the transaction price and the Market
price for reference (if applicable) Not applicable
86Bengang Steel Plates Co. Ltd. Annual Report 2025
2. Related party transactions relevant to asset acquisition or sold
□ Applicable √ Not applicable
During the reporting period the Company did not engage in any related-party transactions involving the acquisition or disposal of
assets or equity interests.
3. Related party transactions relevant to joint investments
√ Applicable □ Not applicable
Net
Registered Net
Profit of
Capital of Total Assets Assets of the
the of the the
Relati Name of the Investee
Co-inves Investee Investee Investee
onshi Investee The Investee's Core Business Compan
tors Enterprise Enterprise (in Enterprise
p Company y
(in 10 10 thousand (in 10
Yuan) (in 10thousand thousand
thousan
Yuan) Yuan)
d Yuan)
Licensed Business Activities: Road
freight transport (excluding
hazardous goods); Road freight
transport (network-based freight
transport); Dismantling of
scrapped motor vehicles. (For
items subject to statutory approval
business operations may only
commence after obtaining
authorization from the relevant
authorities; specific business
Angang activities shall be determined
Same
Green Green Gold based on the approval documents
Ultim
Gold (Benxi) or licenses issued by said
ate
Industry Renewable authorities.) General Business 6000 19687.22 6860.02 860.02
Contr
Develop Resources Activities: Processing of renewable
olling
ment Co. Ltd. resources; Sales of renewable
Party
Co. Ltd. resources; Recovery of renewable
resources (excluding productive
scrap metal); Recovery of
productive scrap metal; Processing
and treatment of non-metallic
waste and scraps; Processing and
treatment of metallic waste and
scraps; Sales of non-ferrous metal
alloys; Warehousing services for
general cargo (excluding items
requiring licensing or approval
such as hazardous chemicals).Progress of major
construction-in-pr Construction of the scrap steel compaction production line project for Green Gold (Benxi) Renewable
ogress projects of Resources Co. Ltd. commenced in July 2025 completed in September 2025 it entered the trial production
the investee phase with an amount of RMB 15.51 million transferred to fixed assets.enterprise (if any)
87Bengang Steel Plates Co. Ltd. Annual Report 2025
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
There were no related credits and debts during the reporting period.
5. Transactions with related financial companies
√ Applicable □ Not applicable
Deposit business
Current period
Maximum Total
Deposit Beginning Total deposit withdrawal Endingdaily deposit
Related party Relationship interest rate balance (10 amount of
limit (ten amount of
balance (10
range thousand) the current this period thousand)thousand) period (10
(10
thousand)
thousand)
Angang
Group Also belong 0.65%-2.15
450000122719.8810052612.6810155857.9219474.64
Finance Co. to Ansteel %
Ltd.Credit or other financial services
Related party Relationship Business type Total amount（10 Actual amount（10thousand） thousand）
Angang Group Finance
Also belong to Ansteel Other financial services 20933.44 20933.44
Co. Ltd.
6. Transactions between the company's holding financial company and related parties
□ Applicable √ Not applicable
There were no deposits loans credit or other financial businesses between the financial company controlled by the
company and its related parties.
7. Other significant related transactions
□ Applicable √ Not applicable
There were no other significant related transactions during the reporting period.XV. Significant Contracts and Their Performance
1. Trusteeship Contracting and Lease Arrangements
(1) Trusteeship
? Applicable ? Not Applicable
During the reporting period the Company had no trusteeship arrangements.
(2) Contracting
? Applicable ? Not Applicable
88Bengang Steel Plates Co. Ltd. Annual Report 2025
During the reporting period the Company had no contracting arrangements.
(3) Leasing
? Applicable ? Not Applicable
Details of leasing
The Company as Lessor:
Lessee Type of leasing assets
Lease income of Lease income of
current period previous period
Benxi Steel & Iron (Group) Steel & Iron Factory buildings and
108980.00
Process and Logistics Co. Ltd. ancillary equipment
Benxi Steel (Group) Machinery Manufacturing Factory buildings and
670802.00
Co. Ltd. ancillary equipment
Bengang Group International Economic and Factory buildings and
1957007.77
Trade Co. Ltd. ancillary equipment
Factory buildings and
Benxi New Industrial Development Co. Ltd. 24500.00
ancillary equipment
Factory buildings and
Angang Tendering Co. Ltd. — Benxi Branch 902511.86
ancillary equipment
Angang Group International Economic & Trade Factory buildings and
1882438.68
Co. Ltd. — Benxi Branch ancillary equipment
89Bengang Steel Plates Co. Ltd. Annual Report 2025
The Company as Lessee
Current period Previous period amount
Variable Variable
Rental costs lease Rental costs lease
for short-term payments Increase for short-term payments
Leased Asset leases and not Interest in leases and not InterestLessor Name Type leases of included Rent paid expense on right-of- leases of included expense on
Increase in
low-value in the lease low-value in the Rent paid lease right-of-use
assets with measure liabilities use assets with measurem liabilities assets
simplified ment of assets simplified ent of
treatment lease treatment lease
liabilities liabilities
Land use
right
Benxi Steel 7669068.17
& Iron square meter 55277544.12 36985912.16 55277544.12 37677819.06
(Group) Co. Land use
Ltd. right
42920.00
square meter
2300 Hot
Benxi Steel
rolling
& Iron
product line 16098161.04 6603587.31 16098161.04 6968900.84
(Group) Co.related real
Ltd.estate
Benxi 1780 Hot
Beiying Steel rolling 14351637.72 5085711.90 14351637.72 5367055.84
& Iron product line
90Bengang Steel Plates Co. Ltd. Annual Report 2025
Current period Previous period amount
Variable Variable
Rental costs lease Rental costs lease
for short-term payments Increase for short-term payments
Leased Asset leases and not Interest in leases and not InterestLessor Name Type leases of included Rent paid expense on right-of- leases of included expense on
Increase in
low-value in the lease Rent paid right-of-use
assets with measure liabilities use
low-value in the lease
assets assets with measurem liabilities
assets
simplified ment of simplified ent of
treatment lease treatment lease
liabilities liabilities
(Group) Co. related real
Ltd. estate
Land use
Bengang
right
Group Co. 9945423.12 1430095.13 9945423.12 1757731.16
728282.30
Ltd.square meter
Angang
Group
Machinery
Energy-Savin
and 10499986.01 3757252.27 7418960.00 6474538.06
255128489.
65
g Technology
equipment
Services Co.Ltd.Benxi New
Business
Land Lease 120000.00
Development
Co. Ltd.
91Bengang Steel Plates Co. Ltd. Annual Report 2025
Current period Previous period amount
Variable Variable
Rental costs lease Rental costs lease
for short-term payments Increase for short-term payments
Leased Asset leases and not Interest in leases and not InterestLessor Name Type leases of included Rent paid expense on
Increase in
low-value in the lease right-of-
leases of included expense on
use low-value in the
Rent paid lease right-of-use
assets with measure liabilities assets assets with measurem liabilities
assets
simplified ment of simplified ent of
treatment lease treatment lease
liabilities liabilities
Benxi Iron &
Steel (Group) Transport 15288573.67
Construction Equipment
Co. Ltd.Benxi Iron &
Steel (Group)
Transport
Machinery 418680.00 299057.14
Equipment
Manufacturin
g Co. Ltd.Benxi
Yuneng Machinery
Thermal and 61062500.00 4907391.25
934741
189.81
Power Co. Equipment
Ltd.Anzi Machinery 6790154.51
(Tianjin) and
92Bengang Steel Plates Co. Ltd. Annual Report 2025
Current period Previous period amount
Variable Variable
Rental costs lease Rental costs lease
for short-term payments Increase for short-term payments
Lessor Name Leased Asset
leases and not Interest leases and not Interest
Type leases of included
in Increase in
low-value in the Rent paid
expense on right-of- leases of included expense onlease use low-value in the
Rent paid lease right-of-use
assets with measure liabilities assets assets with measurem liabilities
assets
simplified ment of simplified ent of
treatment lease treatment lease
liabilities liabilities
Financial Equipment
Leasing Co.Ltd.Items with Profit/Loss Impact Exceeding 10% of the Company’s Total Profit for the Reporting Period
? Applicable ? Not Applicable
During the reporting period there were no lease arrangements that generated profit/loss exceeding 10% of the Company’s total profit.
93Bengang Steel Plates Co. Ltd. Annual Report 2025
2. Significant Guarantees
? Applicable ? Not Applicable
During the reporting period there were no significant guarantees provided by the Company.
3. Entrusted Cash Asset Management
(1) Entrusted Wealth Management
? Applicable ? Not Applicable
During the reporting period the Company did not engage in entrusted wealth management.
(2) Entrusted Loans
? Applicable ? Not Applicable
During the reporting period the Company did not engage in entrusted loans.
4. Other Significant Contracts
? Applicable ? Not Applicable
During the reporting period there were no other significant contracts.XVI. Use of Raised Funds
√ Applicable □ Not applicable
(1) Use of Raised Funds
√Applicable □ Not applicable
Unit: 10 thousand yuan
Fund
Usage
Total Amou
Ratio
Total Funds Purpos nt of
at the Cumul
Total Funds Cumul Redire Cumul Total e and raised
Fundra Securit Net End of ative
amoun Used ative cted ative Unuse destina funds
ising ies Raised the Redire
Year t of in the Funds During Redire d tion of idle for
Metho listing Funds Report cted
funds Curren Used the cted Raised unused more
d date (1) ing Funds
raised t (2) Report Funds Funds raised than
Period Ratio
Period ing funds two
(3)=
Period years
(2)/
(1)
The
remain
ing
Issue raised
of August funds
68000675924878272.171880910147
2020 conver 4 400.5 0 0 0.00% of
003.88%6.129
tible 2020 RMB
bonds 870.18
million
from
the
94Bengang Steel Plates Co. Ltd. Annual Report 2025
comple
ted
invest
ment
project
s will
be
perma
nently
utilize
d to
supple
ment
workin
g
capital
while
the
unutili
zed
raised
funds
will be
used to
tempor
arily
supple
ment
workin
g
capital.
68000675924878272.171880910147
Total -- -- 400.5 0 0 0.00% --
003.88%6.129
Explanation of the overall use of raised funds
1. Use of Funds Raised for Investment Projects
The actual use of the funds raised for the year 2025 is detailed in the attached table "Comparison Table of the Use of Funds Raised
by Public Issuance of Convertible Bonds."
2. Changes in the Implementation Location or Method of Investment Projects
During the reporting period there were no changes in the investment projects funded by the raised funds nor were there any changes
in their implementation locations or methods.
3. Initial investment and replacement of raised funds investment projects
95Bengang Steel Plates Co. Ltd. Annual Report 2025
The 13th meeting of the 8th Board of Directors and the 11th meeting of the 8th Board of Supervisors of the Company reviewed and
approved the "Proposal on Using Raised Funds to Replace Self-raised Funds Pre-invested in Raised Fund Investment Projects and
Paid Issuance Expenses" agreeing that the company will use raised funds to replace self-raised funds pre-invested in raised funds
investment projects and paid issuance expenses with a total replacement amount of RMB 366180860.17. This replacement does not
involve a disguised change in the use of raised funds does not affect the normal progress of raised funds investment projects and the
replacement time is no more than 6 months from the time the raised funds arrive which is in compliance with relevant laws and
regulations.Before the raised funds were received the company had used self-raised funds to pre-invest in the raised projects according to the
project progress. As of May 31 2020 the amount of self-raised funds pre-invested was RMB 365630860.17 including the steel
plant No. 8 casting machine project was RMB 76278945.59 the iron plant No. 5 blast furnace capacity replacement project was
RMB 119043290.09 the special steel electric furnace upgrade and transformation project was RMB 59948807.90 the CCPP
power generation project was RMB 95098084.16 and the steel plant No. 4-6 converter environmental protection transformation
project was RMB 15261732.43. As of July 6 2020 the above-mentioned issuance expenses of RMB 55000.00 paid by the
company's own funds were replaced with raised funds.From March 1 2019 to May 31 2021 the company used self-raised funds to pay for the construction of projects funded by the raised
funds amounting to RMB 1082356809.47 including RMB 180000.00 for the high-grade high-magnetic induction non-oriented
silicon steel project RMB 55364729.08 for the No. 8 casting machine project of the steelmaking plant RMB 628049033.12 for
the capacity replacement project of the No. 5 blast furnace of the ironmaking plant RMB 253298156.22 for the upgrading and
transformation project of the special steel electric furnace RMB 115353050.36 for the CCPP power generation project and RMB
30111840.69 for the environmental protection transformation project of the No. 4-6 converters of the steelmaking plant. The
company has transferred the above amounts from the raised funds account to the general deposit account in 2021.From June 1 2021 to May 31 2022 the company used self-raised funds to pay for the construction of projects funded by the raised
funds amounting to RMB 614208698.23 including: RMB 12881890.61 for the No. 8 Casting Machine Project of the Steelmaking
Plant RMB 17508088.97 for the Capacity Replacement Project of the No. 5 Blast Furnace of the Ironmaking Plant RMB
364155482.35 for the Upgrading and Reconstruction Project of the Special Steel Electric Furnace RMB 186441497.75 for the
CCPP Power Generation Project and RMB 33221738.55 for the Environmental Protection Reconstruction Project of the No. 4 and
No. 6 Converters of the Steelmaking Plant. The company has transferred the above amounts from the raised funds account to the
general deposit account in 2022.From June 1 2022 to May 31 2023 the company used self-raised funds to pay for the construction of the raised funds investment
projects amounting to RMB 494502583.01 of which RMB 15316136.52 was used for the capacity replacement project of No. 5
blast furnace of the ironmaking plant RMB 19796661.74 for the CCPP power generation project RMB 429392157.76 for the
upgrading and transformation project of the special steel electric furnace RMB 21452968.70 for the environmental protection
transformation project of No. 4-6 converters of the steelmaking plant and RMB 8544658.29 for the No. 8 casting machine project
of the steelmaking plant. As of December 31 2023 the company has transferred the funds from the raised funds account to the
general deposit account.From June 1 2023 to May 31 2024 the company used self-raised funds to pay for the construction of the raised investment projects
amounting to RMB 102185736.55 of which RMB 24887030.75 was used for the No. 8 casting machine project of the steelmaking
plant RMB 5111121.59 for the capacity replacement project of the No. 5 blast furnace of the ironmaking plant RMB
60162375.13 for the upgrading and transformation project of the special steel electric furnace RMB 5454868.60 for the CCPP
power generation project and RMB 6570340.48 for the environmental protection transformation project of the No. 4-6 converters
of the steelmaking plant. As of December 31 2024 the company has transferred the funds from the raised funds account to the
general deposit account.From June 1 2024 to May 31 2025 the company has no prior investment or replacement of raised funds in investment projects.
96Bengang Steel Plates Co. Ltd. Annual Report 2025
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 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.The sponsor of the company's public issuance of convertible corporate bonds agreed that the company could use idle raised funds to
temporarily supplement working capital and issued the "Guotai Junan Securities Co. Ltd.'s Verification Opinion on the Company's
Use of Idle Raised Funds to Temporarily Supplement Working Capital".As of July 27 2021 the Company has returned all of the idle raised funds of RMB 4180000000.00 used to temporarily supplement
working capital to the Company's special account for raised funds.
(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.
97Bengang Steel Plates Co. Ltd. Annual Report 2025
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) The funds raised from the public issuance of convertible corporate bonds 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 Temporarily Supplement Working Capital".
(5) The funds raised from the public issuance of convertible corporate bonds in July 2024 will temporarily supplement working
capital.The company used idle raised funds of RMB 1860000000.00 (RMB 1015000000.00 for high-grade and high-magnetic induction
non-oriented silicon steel project RMB 100000000.00 for the No. 8 casting machine project of the steel plant RMB
140000000.00 for the capacity replacement project of No. 5 blast furnace of the iron plant RMB120000000.00 for the special steel
electric furnace upgrade and renovation project RMB 397000000.00 for the CCPP power generation project and RMB
88000000.00 for the environmental protection renovation project of No. 4-6 converters of the steel plant) to temporarily supplement
working capital. The matter was reviewed and approved at the 26th meeting of the 9th Board of Directors and the 17th meeting of the
9th Board of Supervisors held on July 18 2024. The company's independent directors have expressed their clear consent. The time
for supplementing working capital shall not exceed 12 months.The sponsor of the company's public issuance of convertible bonds agreed that the company could use idle raised funds to
temporarily supplement working capital and issued the "Guotai Junan Securities Co. Ltd.'s Verification Opinion on the Company's
Use of Idle Raised Funds to Temporarily Supplement Working Capital".As of December 31 2025 the Company has returned the aforementioned idle raised funds which were utilized to temporarily
supplement working capital to the Company's designated special account for raised funds.
(6) The funds raised from the public issuance of convertible corporate bonds in July 2025 will temporarily supplement working
capital.The proposal regarding the temporary use of RMB 1015000000.00 in idle raised funds—originally designated for the "High-Grade
High-Magnetic-Induction Non-Oriented Silicon Steel Project"— to supplement working capital was reviewed and approved at the
Second Meeting of the 10th Board of Directors and the Second Meeting of the 10th Board of Supervisors held on July 16 2025. The
Company's Independent Directors have issued an explicit opinion of consent regarding this matter; the duration of this working
capital supplementation shall not exceed 12 months.The sponsor of the company's public issuance of convertible bonds agreed that the company could use idle raised funds to
temporarily supplement working capital and issued the "Guotai Junan Securities Co. Ltd.'s Verification Opinion on the Company's
Use of Idle Raised Funds to Temporarily Supplement Working Capital".As of December 31 2025 the company used idle funds raised from the public issuance of convertible corporate bonds to temporarily
supplement the balance of RMB 1015000000.00 in working capital.
5. Cash management using idle raised funds
The company did not use idle raised funds for cash management during the reporting period.
6. Use of surplus raised funds
98Bengang Steel Plates Co. Ltd. Annual Report 2025
On April 2 2025 the company held the 35th meeting of the 9th Board of Directors and the 21st meeting of the 9th Board of
Supervisors to review and approve the "Proposal on Completing Some Fundraising Projects and Using the Surplus Fundraising
Funds to Permanently Supplement Working Capital". Given that the Company's 2020 public issuance of convertible corporate bonds
which raised funds for investment projects including the "Steel Plant No. 8 Casting Machine Project" the "Iron Plant No. 5 Blast
Furnace Capacity Replacement Project" the "Special Steel Electric Furnace Upgrading and Reconstruction Project" the "CCPP
Power Generation Project" and the "Steel Plant No. 4-6 Converter Environmental Reconstruction Project" have essentially
completed investment in order to rationally utilize the raised funds reduce the Company's financial expenses enhance the
Company's sustainable operating capacity and fully utilize the raised funds and in accordance with the requirements of relevant laws
regulations and normative documents such as the "Guidelines for the Supervision of Listed Companies No. 2 - Regulatory
Requirements for the Management and Use of Raised Funds by Listed Companies" and the "Shenzhen Stock Exchange Guidelines
for Self-Regulatory Supervision of Listed Companies No. 1 - Standardized Operations of Main Board Listed Companies" the
Company intends to use the remaining raised funds of RMB 870.18 million (the specific amount will be based on the bank interest
balance settled on the date the funds are transferred) from these completed investment projects to permanently supplement its
working capital for the Company's daily operations.In addition the company does not use the surplus funds from the raised funds investment projects for other raised funds investment
projects or non-raised funds investment projects.The sponsor of the company's public offering of convertible bonds agreed that the company would use the remaining raised funds to
permanently supplement its working capital and issued the "Guotai Junan Securities Co. Ltd.'s Verification Opinion on the
Completion of Some Fundraising Projects of Bengang Plate Co. Ltd. and the Use of the Surplus Raised Funds to Permanently
Supplement Working Capital".
7. 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 December 31 2025 except for the advance investment and replacement of investment projects with raised funds and thetemporary supplement of working capital with idle raised funds as described in “3. Initial investment and replacement of raised fundsinvestment projects” and “4. Using idle raised funds to temporarily supplement working capital” the remaining raised funds will be
temporarily deposited in the special account for raised funds.
9. Other Situations Regarding the Use of Raised Funds
The company did not have any other situations regarding the use of raised funds.
99Bengang Steel Plates Co. Ltd. Annual Report 2025
(2) Fundraising commitments
√Applicable □ Not applicable
Unit: 10 thousand yuan
Commit If the
Investm
ted Projec
ent Project
Finan Investm t Been Total Cumulative Has There
Secur Adjusted Investmen Progress Reached Cumulative
cing ent Chang Commit Investment Benefits Been a
ities Projec Total t Amount by the Predeterm Benefits Expected
Proje Projects ed ted Amount by Achieved in Major
Listin t Investmen for the End of ined Achieved by Benefits
ct and (Inclu Investm the End of the Reporting Change in
g Nature t Amount Reporting the Usable the End of the Achieved
Nam Excessi ding ent the Period Period Project
Date (1) Period Period Status Period
e ve Fund Partial Amount (2) Feasibility
(3) = Date
Allocati Chang
(2)/(1)
on es)
Committed Investment Projects
High-gr
ade high
BenG magneti
ang c Manuf
Conv Augu inductio acturi
March 1 Not
ertibl st 4 n ng No 101620 101620 0 141 0.14% 0 0 No
2032 applicable
e 2020 non-orie constr
Bond nted uction
s silicon
steel
project
BenG
Steel
ang Manuf
plant
Conv Augu acturi
No. 8 October
ertibl st 4 ng No 33500 33500 30.19 22756.19 67.93% -36055.53 -55684.6 No No
casting 31 2020
e 2020 constr
machine
Bond uction
project
s
BenG Augu Blast Manuf November
No 96000 96000 275 81187.52 84.57% -43537.61 -49227.37 No No
ang st 4 furnace acturi 30 2020
100Bengang Steel Plates Co. Ltd. Annual Report 2025
Conv 2020 No. 5 ng
ertibl capacity constr
e replace uction
Bond ment
s project
BenG
Special
ang Manuf
steel
Conv Augu acturi
electric December Not
ertibl st 4 ng No 141600 141600 0 129042.92 91.13% 0 0 No
furnace 31 2025 applicable
e 2020 constr
upgrade
Bond uction
project
s
BenG
ang CCPP Manuf
Conv Augu power acturi
December
ertibl st 4 generati ng No 83300 83300 76.3 43499.08 52.22% 34027.73 84553.12 Yes No
312022
e 2020 on constr
Bond project uction
s
Steel
plant
BenG
No. 4-6
ang Manuf
converte
Conv Augu acturi
r December Not
ertibl st 4 ng No 19900 19900 19.01 11197.17 56.27% 0 0 No
environ 31 2020 applicable
e 2020 constr
mental
Bond uction
transfor
s
mation
project
BenG
ang Repay
Repaym
Conv Augu ment
ent of August 4 Not
ertibl st 4 of No 200000 200000 0 200000 100.00% 0 0 No
bank 2020 applicable
e 2020 bank
loans
Bond loans
s
Subtotal of Committed Investment -- 675920 675920 400.5 487823.88 -- -- -45565.41 -20358.85 -- --
101Bengang Steel Plates Co. Ltd. Annual Report 2025
Projects
Use of Over-Raised Funds
Augu Not
Not
None st 4 None applic No 0 0 0 0 0.00% 0 0 No
applicable
2020 able
Total -- 675920 675920 400.5 487823.88 -- -- -45565.41 -20358.85 -- --
Explanation of
Project
Delays
Expected
Returns and
Reasons The high-grade high-magnetic-induction non-oriented silicon steel project is greatly affected by market factors. The company has adjusted its development strategy and
(Including continues to monitor market changes.Reasons for
Selecting "Not
Applicable"
for Expected
Returns)
Description of
Significant
Changes in None
Project
Feasibility
Amount
Purpose and
Progress of Not applicable
Over-Raised
Funds
Cases of
arbitrarily
changing the
purpose of Not applicable
raised funds or
illegally
occupying
102Bengang Steel Plates Co. Ltd. Annual Report 2025
raised funds
Changes in the
Implementatio
n Location of
Not applicable
Fundraising
Investment
Projects
Adjustments
in the
Implementatio
n Method of Not applicable
Fundraising
Investment
Projects
Advance
Investment Applicable
and
Replacement
of Fundraising
Investment For details please refer to the content stated in Special Report Section III (3).Projects
Use of Idle
raised Funds Applicable
for Temporary
Supplementati
on of Working For details please refer to the content stated in Special Report Section III (4).Capital
Applicable
Amount and The company will close the investment projects raised from its 2020 public offering of convertible corporate bonds and will use the remaining proceeds of RMB870.1762
Reasons for million (the specific amount will be determined by the bank's interest balance on the day the funds are transferred) to permanently supplement its working capital. The main
Surplus raised reasons for the remaining proceeds are: 1. The company consistently adheres to the principles of rationality economy and efficiency in implementing the investment
Funds in projects strictly adhering to relevant regulations on the management of raised funds to ensure optimal capital allocation and cost control while ensuring project quality.Project When preparing the project feasibility study the company calculated the investment project based on the current production technology and process plan. However as the
Implementatio company gained experience in early production its capabilities in equipment selection procurement and production line optimization continued to grow and economies of
n scale emerged effectively reducing construction costs. Furthermore during project implementation the company strengthened cost control and budget management at all
stages based on actual needs rationally allocated resources and optimized construction expenditures further reducing overall project costs. These measures not only enabled
the project to proceed smoothly but also resulted in surplus proceeds from the investment. 2. Due to the cyclical nature of the construction of the raised funds to improve the
103Bengang Steel Plates Co. Ltd. Annual Report 2025
efficiency of the raised funds the company has comprehensively arranged funding sources during project implementation taking into account actual funding needs and
plans and has preemptively used its own funds to meet some of the phased funding needs. 3. The raised funds projects concluded this time have outstanding contract
balances warranty deposits and other outstanding amounts. Due to the long timeline for these payments some of the raised funds have been saved.Purpose and
The remaining proceeds of RMB 870.18 million from the completed fundraising projects have been permanently allocated to supplement working capital; as for the unused
Destination of
proceeds—aside from those temporarily utilized to supplement working capital—the remaining balance of RMB 0.38 million is deposited in a designated special account for
Unused raised
raised funds.Funds
Issues or
Other
Situations in
the Use and There are no issues or other situations.Disclosure of
raised Funds
104Bengang Steel Plates Co. Ltd. Annual Report 2025
(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.
(4) Verification Opinion of the Intermediary Agency Regarding the Storage and Utilization of Raised
Funds
√ Applicable □ Not applicable
By cross-checking the bank statements of the Company’s designated accounts for raised funds as well as the original vouchers for
payments related to the projects funded by such capital the Sponsoring Institution has diligently verified the Company’s storage and
utilization of raised funds for the year 2025.Progress on the Company’s fund-raising investment project the "High-Grade High-Magnetic-Induction Non-Oriented Silicon SteelProject” has been relatively slow. The sponsoring institution has urged the Company to pay close attention to the feasibility of the
project's construction and to determine whether there have been any material changes to its projected returns. Furthermore the
sponsoring institution will supervise the Company to ensure it fulfills all relevant procedural and information disclosure obligations
in accordance with regulatory provisions and self-regulatory rules. The sponsoring institution concludes that: the deposit and
utilization of raised funds by Bengang Steel Plates Co. Ltd. during the year 2025 generally comply with the requirements of relevant
laws regulations and normative documents— including the Measures for the Administration of Securities Issuance by Listed
Companies and Regulatory Guidelines for Listed Companies No. 2—Regulatory Requirements for the Management and Use of
Raised Funds by Listed Companies and that there have been no material violations of laws or regulations regarding the deposit and
utilization of said funds.XVII. 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.XVIII. Major Events of Subsidiaries
? Applicable ? Not Applicable
On March 28 2025 the Company held the 34th meeting of its Ninth Board of Directors which reviewed and approved
the "Proposal on Jointly Investing with Related Parties to Establish a Subsidiary." The Company and its related party
Ansteel Green Gold Industry Development Co. Ltd. jointly invested RMB 60 million to establish Green Gold (Benxi)
Renewable Resources Co. Ltd. (hereinafter referred to as the "Joint Venture"). Of this the Company invested RMB
30.6 million with its own funds holding 51% shares in the Joint Venture while Green Gold Co. invested RMB 29.4
million with its own funds holding 49% shares. Upon completion of this joint investment the Joint Venture will be
included in the Company's consolidated financial statements and become a holding subsidiary of the Company.Industrial and commercial registration was completed on April 9 2025. For details please refer to the "Announcement
on Jointly Investing with Related Parties to Establish a Subsidiary and Related-Party Transactions" (Announcement No.:
2025-011) and the "Announcement on Progress of Jointly Investing with Related Parties to Establish a Subsidiary and
Completion of Industrial and Commercial Registration" (Announcement No.: 2025-025) both disclosed by the
Company on designated information disclosure media.
105Bengang Steel Plates Co. Ltd. Annual Report 2025
VI. Status of Share Capital Changes and Shareholders
I. Share Capital Changes
1. Share capital changes
Unit: Share
Before the change Increase/decrease (+，-) After the ChangeCapitaliz
ation of
Percenta Issuing of Bonus Percenta
Quantity common Others Subtotal Quantity
ge new share shares ge
reserve
fund
I. Restricted Shares
1. State-owned
Shareholdings
2. State-own Legal-person
Shareholding
3. Other domestic
shareholdings
Including: Domestic legal
person holding
Domestic
person holding
4. Foreign Shareholding
Including: Foreign legal
person holding
Foreign person
holding
II. Non-restricted Shares 4108228157 100.00% 8096 8096 4108236253 100.00%
1. Common shares in
370822815790.26%80968096370823625390.26%
RMB
2. Foreign shares in
4000000009.74%4000000009.74%
domestic market
3. Foreign shares in
oversea market
4.Others
III. Total shares 4108228157 100.00% 8096 8096 4108236253 100.00%
Reason for share capital changes
√Applicable □Not applicable
106Bengang Steel Plates Co. Ltd. Annual Report 2025
During the reporting period 320 convertible bonds were converted into shares and the company's total
share capital increased by 8096 shares.Approval of share capital changes
□ Applicable √ Not applicable
Status of registration process of transferred shares
□ Applicable √ Not applicable
Influences of share capital changes on financial indices such as basic earnings per share diluted
earnings per share and net assets per share attributed to common shareholders
□ Applicable √ Not applicable
Other information the Company deems necessary to be disclosed or required by the authority
□ Applicable √ Not applicable
2. Changes of Restricted Shares
□Applicable √Not applicable
II. Securities Issuance and Listing
1. Status of Security Issuance (Excluding Preferred Shares) in the Reporting Period
□Applicable √Not applicable
2. Total Share and Shareholder Change and Asset and Liability Structure Change
□Applicable √Not applicable
3. Employee Shareholding Status
□Applicable √Not applicable
III. Shareholders and Actual Controller
1. Total Number of shareholders and shareholding
Unit: Share
Total number of Total number of Total number of
Total number of
common preferred shareholders preferred shareholders
common shareholders
45141 shareholders at 44336 whose voting rights 0 whose voting rights 0
at the end of the
the end of the were restored at the end were restored at the
reporting period
month before of the reporting period end of the month
107Bengang Steel Plates Co. Ltd. Annual Report 2025
the annual (if any) (see Note 8) before the annual
report disclosure report disclosure date
date (if any) (see Note 8)
Shareholding of shareholders holding more than 5% or top 10 shareholders (Excluding shares lent through refinancing)
Number of Changes in Number of pledged or
Name of the Nature of Holding Restricted Un-restricted
shares held at reporting frozen shares
shareholder shareholder Percentage shares held shares held
period-end period Status Number
Benxi Steel & Iron State-owned Frozen
58.65%2409628094002409628094102100000
(Group) Co. Ltd. legal person
Not
Bengang Group State-owned
17.95% 737371532 0 0 737371532 applicab 0
Co. Ltd. legal person
le
Guan Hui NotDomestic
0.70% 28600000 386400 0 28600000 applicab 0
natural person
le
Zhang Wenyou NotDomestic
0.43% 17820865 -341500 0 17820865 applicab 0
natural person
le
Hong Kong Not
Foreign legal
Securities Clearing 0.35% 14291661 3410271 0 14291661 applicab 0
person
Company Limited le
Lyu Ruijun NotDomestic
0.30% 12289100 277660 0 12289100 applicab 0
natural person
le
MaYonghua NotDomestic
0.24% 10033357 10900 0 10033357 applicab 0
natural person
le
Zhou Wei NotDomestic
0.24% 9736700 741400 0 9736700 applicab 0
natural person
le
Gao Tao Not
Domestic
0.23% 9600000 -5900000 0 9600000 applicab 0
natural person
le
Gao Yong Not
Domestic
0.23% 9418500 9418500 0 9418500 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
Notes to relationship or ‘action in Group Co. Ltd. and is a concerted action person stipulated in the "Administrative Measures for
concert’ among the top 10 shareholders. the Acquisition of Listed Companies". It is unknown to the Company whether there is any
related connection or ‘Action in Concert’ as described by Rules of Information Disclosing
108Bengang Steel Plates Co. Ltd. Annual Report 2025
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
shareholders' entrusted/entrusted voting
abstention of voting rights.rights and waiver of voting rights
Special instructions for the existence of
special repurchase accounts among the
None
top 10 shareholders (if any) (see Note
10)
Shareholding of top 10 unrestricted shareholders (Excluding shares lent through refinancing and shares locked by senior executives)
Un-restricted shares held at Category of shares
Name of the shareholder
the end of the reporting period Category of shares Quantity
Benxi Steel & Iron (Group) Co. Ltd. 2409628094 Common shares in RMB 2409628094
Bengang Group Co. Ltd. 737371532 Common shares in RMB 737371532
Guan Hui 28600000 Common shares in RMB 28600000
Zhang Wenyou 17820865 Common shares in RMB 17820865
Hong Kong Securities Clearing Company
14291661 Common shares in RMB 14291661
Limited
Lyu Ruijun 12289100 Foreign shares in domestic exchange 12289100
Ma Yonghua 10033357 Foreign shares in domestic exchange 10033357
Zhou Wei 9736700 Common shares in RMB 9736700
Gao Tao 9600000 Foreign shares in domestic exchange 9600000
Gao Yong 9418500 Common shares in RMB 9418500
Benxi Iron and Steel (Group) Co. Ltd. has a related relationship with Benxi Iron and
Notes to relationship or ‘action in concert’ Steel Group Co. Ltd. and is a concerted action person stipulated in the "Administrative
among the top 10 non-restricted shareholders Measures for the Acquisition of Listed Companies". It is unknown to the Company
and among the top 10 non-restricted whether there is any related connection or ‘Action in Concert’ as described by Rules of
shareholders and top 10 shareholders Information Disclosing Regarding Changing of Shareholding Status of Listed
Companies existing among the above shareholders.Guan Hui holds 600000 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 164498 shares of the Company's stock through
securities margin trading (if any) (see Note 4) an investor credit securities account 17656367 shares of the Company's stock through
an investor credit securities account. Gao Yong holds 9418500 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
109Bengang Steel Plates Co. Ltd. Annual Report 2025
□Applicable √ Not Applicable
Whether top 10 common shareholders and top 10 un-restricted common shareholders have a buy-back
agreement dealing in reporting period
□ Yes √ No
Top 10 common shareholders and top 10 un-restricted common shareholders had no buy-back
agreement dealing in reporting period.
2. Information of the Company's controlling shareholder
Nature of Controlling Shareholder: Central State-owned Holdings
Type of Controlling Shareholder: Legal person
Name of the
Legal representative Date of Organization
Controlling Principal business activities
/ person in charge incorporation Code
shareholder
General Business Items: Steel and iron smelting; steel
rolling and processing; manufacturing of metal materials;
ferroalloy smelting; heat production and supply; metal
cutting and machining services; general equipment
manufacturing (excluding special equipment
manufacturing); import and export of goods; office
services; sales of construction materials; sales of
refractory materials; production of refractory materials;
manufacturing of instruments and meters; research and
experimental development in natural sciences;
professional design services; industrial design services;
information consulting services (excluding licensed
information consulting services); property management;
recycling of productive scrap metals; recycling of
Benxi Steel &
9121050011972 renewable resources (excluding productive scrap metals);
Iron (Group) Co. Yu Feng July 101996
6263U processing of renewable resources; sales of renewable
Ltd.resources; leasing of non-residential real estate;
residential housing leasing; asset management services
utilizing self-owned funds; advertising production;
advertising design and agency services; advertising
publishing (Business activities are conducted
independently and in accordance with the law based on
the business license except for items requiring prior
approval pursuant to the law).Licensed Business Activities: Extraction of mineral
resources from non-coal mines; power generation
transmission and supply (distribution); heating services;
production and supply of tap water; gas operations;
construction engineering; public railway transportation;
road freight transportation (excluding hazardous goods);
110Bengang Steel Plates Co. Ltd. Annual Report 2025
tourism services; accommodation services; food and
beverage services; wholesale of publications; retail of
publications; printing of publications; construction
engineering design; basic telecommunications services;
and newspaper publishing. (For projects subject to
statutory approval business activities may only be
conducted after obtaining authorization from the relevant
authorities; the specific scope of business activities shall
be determined based on the results of such approvals.)
Equity details of
other domestic
and overseas listed
companies
controlled or
None
invested by the
controlling
shareholder during
the reporting
period
Changes of controlling shareholders during the reporting period
□ Applicable √ Not applicable
The controlling shareholder of the company has not changed during the reporting period.
3. The actual controller and its persons acting in concert
Nature of actual controller: Central state-owned assets management agency
Type of actual controller: Legal person
Legal representative Date of Principal business
Name of the controlling shareholder Organization Code
/ person in charge incorporation activities
Steel iron vanadium
titanium stainless steel
special steel production
and manufacturing
non-ferrous metal
production and
manufacturing steel
91210000558190456 rolling processing iron
Ansteel Group Co. Ltd Tan Chengxu July 28 2010
G vanadium titanium and
other non-ferrous metals
non-metallic mineral
mining and
comprehensive
utilization mining
auxiliary industries clean
energy power generation
111Bengang Steel Plates Co. Ltd. Annual Report 2025
coal and coal products
sales chemical products
and gases (excluding
hazardous chemicals)
refractory materials
production and sales
industrial and mining
engineering
metallurgical engineering
construction engineering
technology services
equipment
manufacturing Internet
of Things information
services energy
conservation
environmental protection
technology services new
material research and
development renewable
resources development
mechanical processing
technology development
transfer and services
transportation services
real estate development
urban energy supply
software and information
technology services
intelligent manufacturing
and services domestic
and international trade
financial management
tendering and bidding
services medical and
health care services
vocational skills training
economic information
consulting services
enterprise management
hotel and catering
services operation of
other state-owned assets
and investments within
112Bengang Steel Plates Co. Ltd. Annual Report 2025
the scope authorized by
the State-owned Assets
Supervision and
Administration
Commission of the State
Council; the following
are limited to branch
operations: newspaper
distribution publication
printing packaging
decoration and other
printing products
printing. (Projects that
require approval by law
must obtain approval
from relevant
departments before
engaging in business
activities.)
During the reporting period Ansteel Group Co. Ltd indirectly held 53.97% of the shares
Equity details of other domestic and overseas
of Angang Steel Company Limited directly and indirectly held 49.90% of the shares of
listed companies controlled by the actual
Vanadium & Titanium Company Limited and indirectly held 37.46% of the shares of
controller during the reporting period
Linggang Co. Ltd.Change of actual controller during the reporting period
□ Applicable √ Not applicable
There is no change of actual controller during the reporting period.Block diagram of the ownership and control relations between the Company and the actual controller
113Bengang Steel Plates Co. Ltd. Annual Report 2025
Liaoning Provincial Liaoning Dongfang
Liaoning Ansteel Liaoning Huida
State-owned Assets Fushun New Anrong Investment
Social Security Group
Supervision and Enterprise
Fund Council Co. Ltd. Steel Co. Ltd. Management Partnership
Administration Commission Management Co. Ltd.(Limited Partnership)
10%20.4%51%9%5%4.6%
Bengang Group Co. Ltd.
100%
Benxi Steel & Iron (Group) Co. Ltd.
58.65%17.95%
Bengang Steel Plates Co. Ltd.Whether the actual controller is controlling the Company through trusteeship or other asset
management service
□ Applicable √ Not applicable
4. The total number of shares pledged by the company's controlling shareholder or largest
shareholder and its persons acting in concert accounts for 80% of the total number of shares held
by them
□ Applicable √ Not applicable
5. Shareholders holding More than 10% of the Shares
□ Applicable √ Not applicable
6. Status of Share Reduction Limitation of Controlling Shareholders Actual Controller
Restructuring Party and Other Commitment Subjects
□ Applicable √ Not applicable
IV. Specific implementation of share repurchases during the reporting period
Progress of share repurchase implementation
□ Applicable √Not applicable
Progress of the implementation of share repurchase through centralized bidding transactions
□ Applicable √ Not applicable
114Bengang Steel Plates Co. Ltd. Annual Report 2025
VII. Status of Bonds
√ Applicable □ Not applicable
I. Enterprise bonds
□ Applicable √ Not applicable
During the reporting period the company did not have Enterprise bonds.II. Corporate bonds
□ Applicable √ Not applicable
During the reporting period the company did not have corporate bonds.III. Debt financing tools for non-financial companies
□ Applicable √ Not applicable
During the reporting period the company did not have non-financial corporate debt financing
instruments.IV. Convertible corporate bonds
√ Applicable □ Not applicable
1. Convertible bond issuance
Approved by the China Securities Regulatory Commission's "Securities Regulatory License [2020] No.
46" the company publicly issued 68 million convertible corporate bonds on June 29 2020 with a face
value of RMB 100 each a total issuance amount of RMB 6.80 billion and a term of 6 years. The
company's 6.8 billion yuan convertible corporate bonds were listed and traded on the Shenzhen Stock
Exchange on August 4 2020. The bonds are referred to as "Bengang convertible bonds" and the bond
code is "127018".
2. Guarantors and top ten holders of convertible bonds
Convertible Bond Name Bengang Convertible Bonds
Number of convertible bond holders at
17509
the end of the period
115Bengang Steel Plates Co. Ltd. Annual Report 2025
Guarantor of our convertible bonds Bengang Group Co. Ltd.Major changes in the guarantor's
profitability asset status and credit None
standing
The top ten holders of convertible bonds:
Percenta
ge of
Number of Amount of converti
convertible convertible bonds ble
Nature of convertible bond bonds held at held at the end of bonds
No. Convertible bond holders
holders the end of the the reporting held at
reporting period (RMB the end
period (sheets) yuan) of the
reportin
g period
1 Soochow Securities Co. Ltd. State-owned Legal Person 3917973 391797300.00 6.96%
China Merchants Bank Co.Ltd - Bosera CSI Convertible
2 Others 3895581 389558100.00 6.92%
Bond & Exchangeable Bond
Index ETF
Industrial and Commercial
Bank of China Limited –
3 Others 1941011 194101100.00 3.45%
Bosera Credit Bond
Investment Fund
Ping An Stable-Growth
Allocation Series 3
Fixed-Income Pension
4 Others 1408202 140820200.00 2.50%
Product - Industrial and
Commercial Bank of China
Limited
Deji Capital Management
5 Company - DK MS FPI Foreign Legal Person 1355483 135548300.00 2.41%
(Cayman) Ltd. - QFII
Domestic Non-State-Owned
6 Pacific Securities Co. 1262690 126269000.00 2.24%
Legal Person
Industrial and Commercial
Bank of China Limited —
7 Others 801869 80186900.00 1.42%
GF Convertible Bond Initiator
Securities Investment Fund
CITIC Securities "Xinfu
Shuangying" Fixed-Income
8 Pension Product — Others 776820 77682000.00 1.38%
Industrial and Commercial
Bank of China Limited
116Bengang Steel Plates Co. Ltd. Annual Report 2025
China Asset Management
"Longevity No. 9" Fixed
9 Income Pension Product — Others 748118 74811800.00 1.33%
China Merchants Bank Co.Ltd.Industrial and Commercial
Bank of China Limited —
10 Others 744399 74439900.00 1.32%
Huashang Convertible Bond
Securities Investment Fund
3. Changes in convertible bonds during the reporting period
√Applicable □ Not applicable
Unit: RMB Yuan
Convertible Increase/Decrease
Corporate Bond Before Change Repurchas After Change
Name Conversion Redemption e
Bengang
5630985100.0032000.005630953100.00
Convertible Bond
4. Cumulative share conversion
√Applicable □ Not applicable
Proportion
Name Total Cumulativ of
Start date Cumulative Proportion of
of issue Total issue e Amount of shares unconvert
and end date conversion converted shares
Convert quantit amount conversion not converted ed amount
of amount to the total issue
ible y (Yuan) quantity(s (Yuan) to the total
conversion (Yuan) quantity
Bond (sheet) hares) issue
amount
Bengan
g 4th Jan 2021
6800068000000116904692328647
Convert – 28th Jun 6.01% 5630953100.00 82.81%
00000.0000.0021
ible 2026
Bond
5. Previous adjustments and revisions of the conversion price
Latest Conversion
Conversio
Name of Adjusted Price as of the
n Price Conversion Price
Convertible Conversion Disclosure Date End of the
Adjustme Adjustment Explanation
Bond Price (Yuan) Reporting Period
nt Date
(Yuan)
Bengang July 19 5.02 July 10 2021 Implementation of 2020 3.95
117Bengang Steel Plates Co. Ltd. Annual Report 2025
Convertible 2021 Equity Distribution Plan
Bond
Bengang Implementation of 2021
October September 28
Convertible 4.55 Interim Equity Distribution 3.95
1320212021
Bond Plan
Bengang
June 16 Implementation of 2021
Convertible 3.95 June 8 2022 3.95
2022 Equity Distribution Plan
Bond
The company's A-share
price triggered the clause in
the prospectus regarding the
Bengang
December December 26 downward adjustment of
Convertible 3.29 3.29
26 2025 2025 the conversion price of
Bond
Bengang convertible bonds
and the board of directors
proposed an amendment.
6. At the end of the reporting period the company's liabilities changes in credit standing and
cash arrangements for debt repayment in future years
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 of the consolidated financial statements during the reporting period exceeds 10%
of the net assets at the end of the previous year
√ Applicable □ Not applicable
The impact on the company's
Items Losses Reasons for the losses production and operation and
debt repayment capacity
The parent company's net
profit in 2025 was
-4085561948.08 yuan
which was 10% higher than
the net assets in the audited
Parent company of Bengang Net profit in 2025 RMB
Operational loss consolidated balance sheet of
Steel Plates Co. Ltd. -4085561948.08
the previous year affecting
the increase in the audited
consolidated net loss in this
period and the increase in the
debt-to-asset ratio.
118Bengang Steel Plates Co. Ltd. Annual Report 2025
VI. The situation of overdue interest-bearing debts excluding bonds at the end of the
reporting period
□ Applicable √ Not applicable
VII. Any violation of rules and regulations during the reporting period
□ Applicable √ Not applicable
VIII. The company’s main accounting data and financial indicators for the past two years as
of the end of the reporting period
Unit: 10 thousand yuan
Changes over ending
Item 31 Dec 2025 31 Dec 2024
balance of last year
Current ratio 0.35 0.52 -32.69%
Debt-to-asset ratio 81.20% 72.72% 8.48%
Quick ratio 0.11 0.18 -38.89%
Changes over previous
Current period Previous period
period
Net profit after deducting
-402712.96-522160.1822.88%
non-recurring gains and losses
EBITDA total debt ratio -6.55% -7.76% 1.21%
Interest Coverage ratio -9.16 -9.33 1.82%
Cash Interest Coverage ratio -3.88 -1.74 -123.23%
EBITDA Interest Coverage
-5.28-5.748.01%
ratio
Loan repayment rate 100.00% 100.00% 0.00%
Interest repayment rate 100.00% 100.00% 0.00%
119Bengang Steel Plates Co. Ltd. Annual Report 2025
VIII. Financial Report
1. Auditor’s report
Opinion of audit report Unqualified opinion
Date of audit report 2th April 2026
Name of CPA Firm BDO China Shu Lun Pan CPAs LLP
Audit report number PCPAR [2026] No. ZG10394
Name of CPA Guo Shunxi Fu Yangyi
Auditors’ Report
PCPAR [2025] No. ZG10394
ToAll Shareholders of Bengang Steel Plates Co. Ltd.:
Auditor’s Opinion
We have audited the accompanying financial statements of Bengang Steel Plates Co. Ltd.(hereinafter referred to as “the Company”) which comprise the consolidated statement of
financial position and statement of financial position as at 31 December 2025 the
consolidated statement of comprehensive income and statement of comprehensive
income the consolidated statement of changes in equity and statement of changes in
equity the consolidated statement of cash flows and statement of cash flows for the year
then ended and notes to the financial statements.In our opinion the financial statements present fairly in all material respects the
consolidated financial position and financial position of the Company as at 31 December
2025 and the consolidated results of operations and results of operations and the
consolidated cash flows and cash flows of the Company for the year then ended in
accordance with the requirements of Accounting Standards for Business Enterprises.Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing for Certified
Public Accountants. Our responsibilities under those standards are further described in
the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the Company in accordance with the China Code of Ethics
for Certified Public Accountants No. 1 Independence Requirements for Audit and
Review Engagements and we have fulfilled our other ethical responsibilities in
accordance with China Code of Ethics for Certified Public Accountants. We have
complied with the independence requirements applicable to audits of public interest
entities. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.Key Audit Matters
The key audit matters are matters that we consider to be the most important for the audit
of the current financial statements based on professional judgment. The response to these
matters is based on the overall audit of the financial statements and the formation of audit
opinions. We do not express a separate opinion on these matters.
120Bengang Steel Plates Co. Ltd. Annual Report 2025
We have identified the following items as key audit matters that need to be disclosed in
the audit report.KeyAudit Matters Audit Procedure
1. Revenue RecognitionPlease refer to the Note (20) under “3. The main audit procedures we performed areSignificant accounting policies and accounting as follows:estimates” and Note (30) under “5. Notes to (1) Understand and test the key internalconsolidated financial statements”. controls related to revenue and evaluate
whether the relevant controls are appropriate
In 2025 the amount of operating income and effectively implemented; (2) We
recognized in the consolidated financial performed analytical procedures on revenue
statements is RMB 46392.25 million. Since including comparison of the gross profit of the
revenue is a key performance indicator of the current period of revenue of major products
Company the management of the Company with that of the previous period analysis of
may have a significant risk of misstatement in revenue fluctuations and checking whether
revenue recognition. Therefore we consider there are any abnormalities;
revenue recognition as a key audit matter. (3) Obtain the detailed sales records for the
current year select samples of revenue
transactions recorded in the current year
check the supporting documents such as sales
contracts invoices yard sheets customs
declarations and evaluate whether the
relevant revenue recognition complies with
the company's accounting policies;
(4) Select samples to check sales contracts
identify the contract terms and conditions
related to the transfer of control of goods and
evaluate whether the timing of revenue
recognition of the Company complies with the
requirements of Accounting Standards for
Business Enterprises;
(5) In combination with the accounts
receivable audit procedures perform
confirmation procedures with sample
customers for sales revenue during the
121Bengang Steel Plates Co. Ltd. Annual Report 2025
reporting period;
(6) Check the sales to related parties review
the fairness of the transaction prices of related
parties and perform confirmation procedures
with related party customers;
(7) Check whether information related to
revenue has been properly reported and
disclosed in the financial statements.
2. Impairment of InventoryPlease refer to the Note （ 12） under “3. The main audit procedures we performed areSignificant accounting policies and accounting as follows:estimates” and Note (7) under “5. Notes to (1) Evaluated the design and operation ofconsolidated financial statements”. internal control related to the impairment of
inventory;
As at December 312025 the carrying amount (2) Supervise stocktaking and check the
of inventory in consolidated statement is RMB quantity and status of inventory especially the
6719.74 million impairment of inventory is aged inventory;
RMB 350.55 million the book value of (3) Obtain the calculation schedule of the
inventory is RMB 6369.19 million. Inventory impairment of inventory. Check whether it
is measured at the lower of cost and net follows the requirements of related accounting
realizable value. The sufficiency of standards of the Company check the changes
impairment for inventory will exert a great in the inventory impairment provision made in
impact on the financial statement. previous years etc. and analyze whether the
inventory impairment provision is sufficient;
The net realizable value of finished goods is (4) Implement net realizable value testing of
determined by deducting the estimated selling inventories and review the method of making
expenses and related taxes from the estimated provisions for inventory impairment and test
selling price. the integrity of the reports and data on which
it is based.Management estimates the expected selling
price based on the condition of inventory. It
involves significant management judgement in
the estimation process.As at December 31 2025 the carrying
amount of inventory was significant and
122Bengang Steel Plates Co. Ltd. Annual Report 2025
involves the estimation of net realizable value.Therefore we identified it as a key audit
matter.Other information
The management of the Company is responsible for the other information. The other
information comprises information of the Company's annual report for the period of 2025
but excludes the financial statements and our auditor's report.Our opinion on the financial statements does not cover the other information and we do
not and will not express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the
other information identified above and in doing so consider whether the other
information is materially inconsistent with the financial statements or our knowledge
obtained in the audit if there appears to be a material misstatement.Based on the work we have performed if we determine that there is a material
misstatement of other information we should report that fact. In this regard we have
nothing to report.Responsibilities of Management and Those Charged with Governance for the
Financial Statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with requirements of Accounting Standards for Business
Enterprises and for such internal control as management determines is necessary to
enable the preparation of financial statements that are free from material misstatement
whether due to fraud or error.In preparing the financial statements management of the Company is responsible for
assessing the Company's ability to continue as a going concern disclosing as applicable
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations or has no
realistic alternative but to do so.Those charged with governance are responsible for supervising the Company's financial
reporting process.Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements
are free from material misstatement whether due to fraud or error and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance but is not a guarantee that an audit conducted in accordance with China
Standards on Auditing for Certified Public Accountants will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if individually or in the aggregate they could reasonably be
expected to influence the economic decisions of users taken on the basis of these
financial statements.As part of an audit in accordance with accordance with Chinese Certified Public
Accountants Auditing Standards we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
123Bengang Steel Plates Co. Ltd. Annual Report 2025
(1) Identify and assess the risks of material misstatement of the financial statements
whether due to fraud or error design and perform audit procedures responsive to those
risks and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error as fraud may involve collusion forgery
intentional omissions misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
(4) Conclude on the appropriateness of management’s use of the going concern basis of
accounting and based on the audit evidence obtained whether a material uncertainty
exists related to events or conditions that may cast significant doubt on Bengang Steel
Plate’s ability to continue as a going concern. If we conclude that a material uncertainty
exists we are required to draw attention in our auditor’s report to the related disclosures
in the financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However future events or conditions may cause the Company to cease to
continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements
including the disclosures and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information
of entities or business activities within the Company to express an opinion on the
financial statements. We are responsible for guiding supervising and executing the group
audit and assume full responsibility for the audit opinion.We communicate with those charged with governance regarding among other matters
the planned scope and timing of the audit and significant audit findings including any
significant deficiencies in internal control that we identify during our audit.We also provide a statement to those charged with governance on compliance with the
ethical requirements associated with independence and communicate with those charged
with governance all relationships and other matters that may reasonably be considered to
affect our independence and related precautions (if applicable).From the matters communicated with those charged with governance we determine
those matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditor's report unless law or regulation precludes public disclosure about the matter or
when in extremely rare circumstances we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.BDO CHINA SHU LUN PAN CERTIFIED Certified Public Accountants of China
PUBLIC ACCOUNTANTS LLP (Engagement Partner)
Certified Public Accountants of China
Shanghai the People’s Republic of China 2 April 2026
124Bengang Steel Plates Co. Ltd. Annual Report 2025
This auditor’s report and the accompanying notes to the financial statement are English translation of the
Chinese auditors’ report. In case of doubt as to the presentation of these documents the Chinese version shall
prevail.
125Bengang Steel Plates Co. Ltd. Annual Report 2025
BENGANG STEELPLATES CO. LTD.CONSOLIDATED STATEMENTOF FINANCIAL POSITION
As at 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Assets Notes Dec 31 2025 Dec 31 2024
Current assets
Cash at bank and on hand 5 (1) 1127390675.15 2453888470.48
Financial assets held for trading
Derivative financial assets
Notes receivable 5 (2) 399759776.83 607279481.42
Accounts receivable 5 (3) 1178780456.77 501484081.73
Accounts receivable financing 5 (4) 331321177.27 64399942.70
Prepayments 5 (5) 314825894.06 391823135.87
Premium receivable
Reinsurance accounts receivable
Receivable deposit for reinsurance contract
Other receivables 5 (6) 4034061.03 149015138.26
Redemptory financial assets for sale
Inventories 5 (7) 6369194886.12 7333084694.27
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 5 (8) 450271362.93 437081260.66
Total current assets 10175578290.16 11938056205.39
Non-current assets
Loan and advances issued
Debt Investments
Other debt investments
Long-term receivables
Long-term equity investments 5 (9) 43269884.04 45413221.72
Other equity instrument investments 5 (10) 890420831.77 933426254.63
Other non-current financial assets
Investment property
Fixed assets 5 (11) 28412673622.89 26426320453.57
Construction in progress 5 (12) 3074712066.38 3934442501.50
Productive biological assets
Oil and gas assets
Right-of-use assets 5 (13) 2607155393.90 1685925710.14
Intangible assets 5 (14) 383659012.77 394780068.68
Development expenditure 6 (2) 3700000.00
Goodwill
Long-term deferred expenses
Deferred tax assets 5 (15) 124211917.95 371234449.79
Other non-current assets 5 (16) 54632516.72 86297275.16
Total non-current assets 35594435246.42 33877839935.19
Total assets 45770013536.58 45815896140.58
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
126Bengang Steel Plates Co. Ltd. Annual Report 2025
BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued)
As at 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Liabilities and equities Notes Dec 312025 Dec 31 2024
Current Liabilities
Short-term loans 5 (18) 333660470.12 371055490.50
Loan from central bank
Loan from other banks
Financial liability held for trading
Derivative financial liabilities
Notes payable 5 (19) 12962287642.88 12982703669.86
Accounts payable 5 (20) 2667236412.66 2761759439.36
Advance from customers 5 (21) 49541.35 59327.21
Contract liabilities 5 (22) 2736697947.25 2908598425.73
Financial assets sold for repurchase
Deposits from customers and interbank
Receipt from vicariously traded securities
Receipt from vicariously underwriting securities
Employee benefits payable 5 (23) 2586883.29 1773068.35
Current tax liabilities 5 (24) 59857286.81 54070097.83
Other payables 5 (25) 2775544196.11 2354694200.01
Handling charges and commission payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 5 (26) 6940934862.49 1030502916.66
Other current liabilities 5 (27) 275281765.24 328981058.74
Total current liabilities 28754137008.20 22794197694.25
Non-current liabilities
Provision for insurance contract
Long-term loans 5 (28) 6014469758.11 2891941462.40
Bonds payable 5 (29) 5569899459.53
Including: Preferred stock
Perpetual bond
Lease liabilities 5 (30) 2239436105.64 1633911586.51
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income 5 (31) 158199416.58 173919087.47
Deferred tax liabilities 5 (15) 252893530.26
Other non-current liabilities
Total non-current liabilities 8412105280.33 10522565126.17
Total liabilities 37166242288.53 33316762820.42
Shareholders' equity:
Share capital 5 (32) 4108236253.00 4108228157.00
Other equity instruments 5 (33) 947843680.82 947850195.03
Including: Preferred stock
Perpetual bond
Capital reserves 5 (34) 13252955837.48 13225632166.95
Less: treasury shares
Other comprehensive income 5 (35) -129961806.05 -93407196.62
Special reserves 5 (36) 881502.23 809649.65
Surplus reserves 5 (37) 1195116522.37 1195116522.37
General risk reserve
Undistributed profits 5 (38) -11439289982.02 -7497011632.90
Total equity attributable to equity holders of the parent company 7935782007.83 11887217861.48
Non-controlling interests 667989240.22 611915458.68
Total shareholder's equity 8603771248.05 12499133320.16
Total of liabilities and owners’ equity 45770013536.58 45815896140.58
The notes to the financial statements attached form part of these financial statements.Legal Representative： Chief Financial Officer: Chief Accountant:
127Bengang Steel Plates Co. Ltd. Annual Report 2025
BENGANG STEELPLATES CO. LTD.STATEMENTOF FINANCIAL POSITION
As at 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Assets Notes Dec 31 2025 Dec 31 2024
Current assets
Cash at bank and on hand 969348936.91 1928597252.93
Financial assets held for trading
Derivative financial assets
Notes receivable 288032009.55 879167997.23
Accounts receivable 15 (1) 1153889227.54 899413301.62
Accounts receivable financing 334034656.97 67033501.52
Prepayments 274799041.59 552668067.77
Other receivables 15 (2) 55731976.38 399809663.60
Inventories 5607342964.33 6510049399.94
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 417408930.19 401232007.64
Total current assets 9100587743.46 11637971192.25
Non-current assets
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 15 (3) 2465813343.47 2437356681.15
Other equity instrument investments 890420831.77 933426254.63
Other non-current financial assets
Investment property
Fixed assets 27265548170.25 25361023150.98
Construction in progress 2965847309.52 3813480844.57
Productive biological assets
Oil and gas assets
Right-of-use assets 2607155393.90 1685925710.14
Intangible assets 199952774.53 206105870.50
Including: data assets
Development expenditure 3700000.00
Including: data assets
Goodwill
Long-term deferred expenses
Deferred tax assets 122987010.55 370213799.88
Other non-current assets 53948721.72 85556957.68
Total non-current assets 36575373555.71 34893089269.53
Total assets 45675961299.17 46531060461.78
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
128Bengang Steel Plates Co. Ltd. Annual Report 2025
BENGANG STEELPLATES CO. LTD.STATEMENT OF FINANCIAL POSITION (Continued)
As at 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Liabilities and shareholders' equities Notes Dec 31 2025 Dec 31 2024
Current liabilities
Short-term loans 333660470.12 371055490.50
Financial liability held for trading
Derivative financial liabilities
Notes payable 10945673752.38 11915812506.01
Accounts payable 2726855682.41 2881087998.48
Prepayments
Contract liabilities 6807101441.62 6637545634.05
Employee benefits payable 631573.72 354432.32
Current tax liabilities 31524009.09 28685832.43
Other payables 2619633120.59 2206387975.74
Liabilities held for sale
Non-current liabilities due within one year 6940934862.49 1030502916.66
Other current liabilities 58382271.92 61868166.75
Total current liabilities 30464397184.34 25133300952.94
Non-current liabilities
Long term loans 6014469758.11 2891941462.40
Bonds payable 5569899459.53
Including: Preferred stock
Perpetual bond
Lease liabilities 2239436105.64 1633911586.51
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income 158199416.58 154871615.47
Deferred tax liabilities 252893530.26
Other non-current liabilities
Total non-current liabilities 8412105280.33 10503517654.17
Total liabilities 38876502464.67 35636818607.11
Shareholder’s equity:
Share capital 4108236253.00 4108228157.00
Other equity instruments 947843680.82 947850195.03
Including: Preferred stock
Perpetual bond
Capital reserves 12852466024.55 12825142354.02
Less: Treasury shares
Other comprehensive income -129961806.05 -93407196.62
Special reserves 17561.83 9276.81
Surplus reserves 1195116522.37 1195116522.37
Undistributed Profits -12174259402.02 -8088697453.94
Total shareholder's equity 6799458834.50 10894241854.67
Total liabilities and shareholder’s equity 45675961299.17 46531060461.78
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
129Bengang Steel Plates Co. Ltd. Annual Report 2025
BENGANG STEELPLATES CO. LTD.CONSOLIDATED STATEMENTOF COMPREHENSIVE INCOME
For the year ended 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Items Notes Current period Previous period
1. Total operating income 46392250494.48 51266361501.22
Including: Operating income 5 (39) 46392250494.48 51266361501.22
Interest income
Premium earned
Income from handling charges and commission
2. Total operating cost 49974287269.50 56068974028.50
Including: Operating cost 5 (39) 48441024611.38 54693756805.43
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 5 (40) 205223238.29 203043367.36
Selling and distribution expenses 5 (41) 136838793.14 142638617.77
General and administrative expenses 5 (42) 672219542.49 702788411.83
Research and development expenses 5 (43) 90978954.16 86415509.29
Financial expenses 5 (44) 428002130.04 240331316.82
Including: Interest expense 394193802.90 384713981.73
Interest income 32518614.84 43019766.05
Add: Other income 5 (45) 164261547.31 200140947.91
Income on investment（“-” for loss） 5 (46) -10956792.93 -42967621.92
Including: Income from associates and joint ventures -2143337.68 -1497124.69
Income from derecognition of financial assets measured at amortized cost -3911446.37 -60611.63
Exchange gains（“-” for loss）
Net exposure hedge income（“-” for loss）
Gains from change of fair value （“-” for loss）
Credit impairment loss （“-” for loss） 5 (47) -19654328.59 50143005.20
Asset impairment loss （“-” for loss） 5 (48) -303933278.79 -278486334.42
Assets disposal gains（“-” for loss） 5 (49) 3008.85 13020778.49
3. Operational profit（“-” for loss） -3752316619.17 -4860761752.02
Add: Non-operating income 5 (50) 23612863.00 45789122.58
Less: Non-operating expenses 5 (51) 63205937.35 54707998.74
4. Total profit (“-” for loss) -3791909693.52 -4869680628.18
Less: Income tax expenses 5 (52) 63505290.33 90436789.08
5. Net profit（“-” for loss） 5 (39) -3855414983.85 -4960117417.26
1.Classification by continuing operating
1.Net profit from continuing operation（“-” for loss） -3855414983.85 -4960117417.26
2.Net profit from discontinued operation（“-” for loss）
2.Classification by ownership
1. Net profit attributable to the owners of parent company （“-” for loss） -3942278349.12 -5037271398.28
2. Net profit attributable to non-controlling shareholders （“-” for loss） 86863365.27 77153981.02
6.Other comprehensive income -36554609.43 -43035854.74
Other comprehensive income attributable to owners of the parent company after tax -36554609.43 -43035854.74
1.Other comprehensive income items that will not be reclassified into gains/losses -36554609.43 -43035854.74
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 -36554609.43 -43035854.74
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 -3891969593.28 -5003153272.00
Total comprehensive income attributable to the owner of the parent company -3978832958.55 -5080307253.02
Total comprehensive income attributable to non-controlling shareholders 86863365.27 77153981.02
8. Earnings per share
1）Basic earnings per share -0.960 -1.226
2）Diluted earnings per share -0.960 -1.226
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
130Bengang Steel Plates Co. Ltd. Annual Report 2025
BENGANG STEELPLATES CO. LTD.STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Items Notes Current period Previous period
1. Total operating income 15 (4) 46608433844.68 51996293457.84
Less: Operating cost 15 (4) 49052494863.75 55850177739.34
Tax and surcharges 154117521.94 155742776.69
Selling and distribution expenses 206212620.79 175678966.90
General and administrative expenses 635001972.87 666227276.41
Research and development expenses 93809142.84 86415509.29
Financial expenses 427387218.08 260257651.32
Including: Interest expense 394193802.90 384713981.73
Interest income 28799233.97 36704884.79
Add: Other income 85492365.82 129520303.41
Income on investment（“-” for loss） 15 (5) 172333768.77 120893779.91
Including: Income from associates and joint ventures -2143337.68 -1497124.69
Income from derecognition of financial assets
-1112684.35-60611.63
measured at amortized cost
Net exposure hedge income（“-” for loss）
Gains from change of fair value （“-” for loss）
Credit impairment loss（“-” for loss） -41147890.54 30265261.74
Assets impairment loss（“-” for loss） -303933278.79 -278486334.42
Assets disposal gains（“-” for loss） 3008.85 13017822.58
2. Operational profit（“-” for loss） -4047841521.48 -5182995628.89
Add: Non-operating income 23020727.52 45130689.39
Less: Non-operating expenses 59957081.62 42889041.92
3. Total profit (“-” for loss) -4084777875.58 -5180753981.42
Less: Income tax expenses 784072.50 7932735.25
4. Net profit（“-” for loss） -4085561948.08 -5188686716.67
1.Net profit from continuing operation (“-” for loss) -4085561948.08 -5188686716.67
2.Net profit from discontinued operation (“-” for loss)
5.Other comprehensive income -36554609.43 -43035854.74
1.Other comprehensive income items that will not be reclassified
-36554609.43-43035854.74
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
-36554609.43-43035854.74
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 -4122116557.51 -5231722571.41
7. Earnings per share
1）Basic earnings per share
2）Diluted earnings per share
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
131Bengang Steel Plates Co. Ltd. Annual Report 2025
BENGANG STEELPLATES CO. LTD.CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Items Notes Current period Previous period
1.Cash flow from operating activities
Cash received from sale of goods or rendering of services 50026889989.74 55987587183.40
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 80766690.15 124001236.84
Other cash received relating to operating activities 5 (53) 211451415.77 243342089.30
Subtotal of cash inflows from operating activities 50319108095.66 56354930509.54
Cash paid for goods and services 49271145124.19 52271670593.20
Net increase of customer's loan and advances
Net increase of deposit in central bank and interbank deposit
Cash for payment of compensation for original insurance contract
Net increase in capital lent
Cash for payment of interest handling charge and commission
Cash for payment of policy bonus
Cash paid to and on behalf of employees 2052215880.51 2136471168.09
Cash paid for all types of taxes 368535776.73 440396205.59
Other cash paid relating to operating activities 5 (53) 416028082.03 406104548.41
Subtotal of cash outflows from operating activities 52107924863.46 55254642515.29
Net cash flows from operating activities -1788816767.80 1100287994.25
2. Cash flows from investing activities
Cash received from disposal of investments
Cash received from return on investments
Net cash received from disposal of fixed assets intangible assets and other 87183020.00 137069554.37
long-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 87183020.00 137069554.37
Cash paid for acquisition of fixed assets intangible assets and other long-term 2215737062.01 975204696.55
assets
Cash paid for acquisition of investments 60000000.00
Net increase of mortgage loan
Net cash received from subsidiary and other operating unit
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities 2275737062.01 975204696.55
Net cash flows from investing activities -2188554042.01 -838135142.18
3. Cash flows from financing activities
Proceeds from investment 29400000.00
Including: Proceeds from investment of non-controlling shareholders of 29400000.00
subsidiary
Proceeds from borrowings 7139897823.71 3765000000.00
Other proceeds relating to financing activities 5 (53) 3237423685.03 3808123889.76
Subtotal of cash inflows from financing activities 10406721508.74 7573123889.76
Cash repayments of borrowings 4065389832.66 2283590268.00
Cash payments for distribution of dividends profit or interest expenses 481435722.54 274024906.84
Including: Cash paid to non-controlling shareholders as dividend and profit by 109257912.53
subsidiaries
Other cash payments relating to financing activities 5 (53) 3190656112.46 4940069284.22
Subtotal of cash outflows from financing activities 7737481667.66 7497684459.06
Net cash flows from financing activities 2669239841.08 75439430.70
4. Effect of foreign exchange rate changes on cash and cash equivalents 5396056.13 52927527.76
5. Net increase in cash and cash equivalents 5 (54) -1302734912.60 390519810.53
Add: Cash and cash equivalents at the beginning of the period 5 (54) 1590205218.91 1199685408.38
6. Cash and cash equivalents at the ending of the period 5 (54) 287470306.31 1590205218.91
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
132Bengang Steel Plates Co. Ltd. Annual Report 2025
BENGANG STEEL PLATES CO. LTD.STATEMENT OF CASH FLOWS
For the year ended 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Items Notes Current period Previous period
1. Cash flow from operating activities
Cash received from sale of goods or rendering of services 48170024193.40 55337530940.66
Tax rebate received 80766690.15 117007166.59
Other cash received relating to operating activities 687293202.21 214590835.88
Subtotal of cash inflows from operating activities 48938084085.76 55669128943.13
Cash paid for goods and services 47784396245.98 52556437895.34
Cash paid to and on behalf of employees 1897848930.90 1974094315.49
Cash paid for all types of taxes 229932897.98 280573222.50
Other cash paid relating to operating activities 840031988.11 365386433.69
Subtotal of cash outflows from operating activities 50752210062.97 55176491867.02
Net cash flows from operating activities -1814125977.21 492637076.11
2. Cash flows from investing activities
Cash received from disposal of investments
Cash received from return on investments 374456351.38 199000000.00
Net cash received from disposal of fixed assets intangible
87181100.00137064700.00
assets and other long-term assets
Net cash received from disposal of subsidiary and other
operating units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 461637451.38 336064700.00
Cash paid for acquisition of fixed assets intangible assets and
2198525334.45966576178.20
other long-term assets
Cash paid for acquisition of investments 90600000.00
Net cash paid for acquisition of subsidiary and other
operating unit
Other cash paid relating to investing activities
Subtotal of cash outflows paid for investing activities 2289125334.45 966576178.20
Net cash flows from investing activities -1827487883.07 -630511478.20
3. Cash flows from financing activities
Proceeds from investment
Cash received from borrowings 7139897823.71 3765000000.00
Other cash received relating to financing activities 3237423685.03 3808123889.76
Subtotal of cash inflows from financing activities 10377321508.74 7573123889.76
Cash repayments of borrowings 4065389832.66 2283590268.00
Cash payments for distribution of dividends profit or interest 372177810.01 274024906.84
Other cash payments relating to financing activities 3190656112.46 4940069284.22
Subtotal of cash outflows from financing activities 7628223755.13 7497684459.06
Net cash flows from financing activities 2749097753.61 75439430.70
4. Effect of foreign exchange rate changes on cash and
5081250.0852846084.97
cash equivalents
5. Net increase in cash and cash equivalents -887434856.59 -9588886.42
Add: Cash and cash equivalents at the beginning of the period 1064914001.36 1074502887.78
6. Ending balance of cash and cash equivalents 177479144.77 1064914001.36
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
133Bengang Steel Plates Co. Ltd. Annual Report 2025
BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Current period
Owner's equity attributable to parent company
Items Other equity instruments Less: Other General Non-controlling Total of owner's
Share capital Preference Perpetual Capital reserves Treasury comprehensive Special reserves Surplus reserves risk Undistributed profit Subtotal interest equityOthers
shares bond shares income reserve
1. Ending balance of last year 4108228157.00 947850195.03 13225632166.95 -93407196.62 809649.65 1195116522.37 -7497011632.90 11887217861.48 611915458.68 12499133320.16
Add: Change of accounting policies
Correction of errors for last period
Business consolidation under common
control
Others
2. Beginning balance of current year 4108228157.00 947850195.03 13225632166.95 -93407196.62 809649.65 1195116522.37 -7497011632.90 11887217861.48 611915458.68 12499133320.16
3. Changes in current year (“-” for decrease) 8096.00 -6514.21 27323670.53 -36554609.43 71852.58 -3942278349.12 -3951435853.65 56073781.54 -3895362072.11
1) Total comprehensive income -36554609.43 -3942278349.12 -3978832958.55 86863365.27 -3891969593.28
2) Capital increase and decrease by
8096.00-6514.2127323670.5327325252.3229400000.0056725252.32
shareholders
(1) Common share invested by shareholders 29400000.00 29400000.00
(2) Capital input by the holder of other equity
8096.00-6514.2123670.5325252.3225252.32
instruments
(3) Share-based payment attributable to
owners' equity
(4) Others 27300000.00 27300000.00 27300000.00
3) Profit distribution -60185989.14 -60185989.14
(1) Appropriation to surplus reserves
(2) Appropriation to general risk reserve
(3) Profit distribution to shareholders -60185989.14 -60185989.14
(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 71852.58 71852.58 -3594.59 68257.99
(1) Provision of special reserves 64166383.03 64166383.03 4513102.89 68679485.92
(2) Use of special reserves 64094530.45 64094530.45 4516697.48 68611227.93
6) Others
4. Ending balance of current year 4108236253.00 947843680.82 13252955837.48 -129961806.05 881502.23 1195116522.37 -11439289982.02 7935782007.83 667989240.22 8603771248.05
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
134Bengang Steel Plates Co. Ltd. Annual Report 2025
BENGANG STEELPLATES CO. LTD.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
For the year ended 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Previous period
Owner's equity attributable to parent company
Items Other equity instruments Less: Other General Non-controlling Total of owner's
Undistributed
Share capital Preference Perpetual Capital reserves Treasury comprehensive Special reserves Surplus reserves risk Subtotal interest equity
Others profit
shares bond shares income reserve
1. Ending balance of last year 4108219302.00 947858134.16 13422225870.92 -50371341.88 163055.04 1195116522.37 -2414685928.92 17208525613.69 589070286.60 17797595900.29
Add: Change of accounting policies
Correction of errors for last period
Business consolidation under common control
Others
2. Beginning balance of current year 4108219302.00 947858134.16 13422225870.92 -50371341.88 163055.04 1195116522.37 -2414685928.92 17208525613.69 589070286.60 17797595900.29
3. Changes in current year (“-” for decrease) 8855.00 -7939.13 -196593703.97 -43035854.74 646594.61 -5082325703.98 -5321307752.21 22845172.08 -5298462580.13
1) Total comprehensive income -43035854.74 -5037271398.28 -5080307253.02 77153981.02 -5003153272.00
2) Capital increase and decrease by shareholders 8855.00 -7939.13 -196593703.97 -196592788.10 -196592788.10
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity 8855.00 -7939.13 25840.89 26756.76 26756.76
instruments
(3) Share-based payment attributable to owners'
equity
(4) Others -196619544.86 -196619544.86 -196619544.86
3) Profit distribution -45054305.70 -45054305.70 -54632794.65 -99687100.35
(1) Appropriation to surplus reserves
(2) Appropriation to general risk reserve
(3) Profit distribution to shareholders -45054305.70 -45054305.70 -54632794.65 -99687100.35
(4) Others
4) Transfers within shareholders' equity
(1) Capital reserves transferred into paid-in
capital (or stock)
(2) Surplus reserves transferred into paid-in
capital (or stock)
(3) Surplus reserves to recover loss
(4) Net changes of defined contribution plans
transferred into Retained Earnings
(5) Other comprehensive income transferred into
Retained Earnings
(6) Others
5) Special reserves 646594.61 646594.61 323985.71 970580.32
(1) Provision of special reserves 72180947.90 72180947.90 5182353.19 77363301.09
(2) Use of special reserves 71534353.29 71534353.29 4858367.48 76392720.77
6) Others
4. Ending balance of current year 4108228157.00 947850195.03 13225632166.95 -93407196.62 809649.65 1195116522.37 -7497011632.90 11887217861.48 611915458.68 12499133320.16
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
135Bengang Steel Plates Co. Ltd. Annual Report 2025
BENGANG STEEL PLATES CO. LTD.STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Current period
Items Other equity instruments Less: Other
Share capital Preference Perpetual Capital reserves Treasury comprehensi
Special Undistributed Total shareholder’s
Others reserves
Surplus reserves profits equity
shares bond shares ve income
1. Ending balance of last year 4108228157.00 947850195.03 12825142354.02 -93407196.62 9276.81 1195116522.37 -8088697453.94 10894241854.67
Add: Change of accounting policies
Correction of errors for last period
Others
2. Beginning balance of current year 4108228157.00 947850195.03 12825142354.02 -93407196.62 9276.81 1195116522.37 -8088697453.94 10894241854.67
3. Changes in current year (“-” for decrease) 8096.00 -6514.21 27323670.53 -36554609.43 8285.02 -4085561948.08 -4094783020.17
1) Total comprehensive income -36554609.43 -4085561948.08 -4122116557.51
2) Capital increase and decrease by shareholders 8096.00 -6514.21 27323670.53 27325252.32
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity instruments 8096.00 -6514.21 23670.53 25252.32
(3) Share-based payment attributable to shareholders' equity
(4) Others 27300000.00 27300000.00
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 8285.02 8285.02
(1) Provision of special reserves 50656268.19 50656268.19
(2) Use of special reserves 50647983.17 50647983.17
6) Others
4. Ending balance of current year 4108236253.00 947843680.82 12852466024.55 -129961806.05 17561.83 1195116522.37 -12174259402.02 6799458834.50
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
136Bengang Steel Plates Co. Ltd. Annual Report 2025
BENGANG STEEL PLATES CO. LTD.STATEMENT OF CHANGES IN EQUITY (Continued)
For the year ended 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Previous period
Other equity instruments Less: Other
Items Special Undistributed Total shareholder’s
Share capital Preference Perpetual Capital reserves Treasury comprehensi Surplus reserves
Others reserves profits equity
shares bond shares ve income
1. Ending balance of last year 4108219302.00 947858134.16 12852074188.80 -50371341.88 3681.16 1195116522.37 -2900010737.27 16152889749.34
Add: Change of accounting policies
Correction of errors for last period
Others
2. Beginning balance of current year 4108219302.00 947858134.16 12852074188.80 -50371341.88 3681.16 1195116522.37 -2900010737.27 16152889749.34
3. Changes in current year (“-” for decrease) 8855.00 -7939.13 -26931834.78 -43035854.74 5595.65 -5188686716.67 -5258647894.67
1) Total comprehensive income -43035854.74 -5188686716.67 -5231722571.41
2) Capital increase and decrease by shareholders 8855.00 -7939.13 -26931834.78 -26930918.91
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity instruments 8855.00 -7939.13 25840.89 26756.76
(3) Share-based payment attributable to shareholders' equity
(4) Others -26957675.67 -26957675.67
3) Profit distribution
(1) Appropriation of surplus reserves
(2) Profit distribution to shareholders
(3) Others
4) Transfers within shareholders' equity
(1) Capital reserves transferred into paid-in capital (or stock)
(2) Surplus reserves transferred into paid-in capital (or stock)
(3) Surplus reserves to recover loss
(4) Net changes of defined contribution plans transferred into
Retained Earnings
(5) Other comprehensive income transferred into retained
earnings
(6) Others
5) Special reserves 5595.65 5595.65
(1) Provision of special reserves 57316980.35 57316980.35
(2) Use of special reserves 57311384.70 57311384.70
6) Others
4. Ending balance of current year 4108228157.00 947850195.03 12825142354.02 -93407196.62 9276.81 1195116522.37 -8088697453.94 10894241854.67
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
137Bengang Steel Plates Co. Ltd. Annual Report 2025
Bengang Steel Plates Co. Ltd.Notes to the financial statements
For the year ended 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
1. Basic Information of the Company
(1) Company profile
Bengang Steel Plates Co. Ltd. (hereinafter referred to as “Bengang Steel Plates” or “theCompany”) as approved in Liao-Zheng (1997) No. 57 by Liaoning People’s Government on
27 March 1997 was incorporated as a joint stock limited company through public share offer
of domestic listed foreign currency denominated shares (B shares) in the People’s Republic
of China (the “PRC”) on 27 June 1997 by Benxi Steel and Iron (Group) Co. Ltd. (“BengangGroup”) through reorganization of operations assets and liabilities of its plants namely
Steel Smelting Plant Primary Rolling Plant and Continuous Hot Rolling Plant.As approved by China Securities Regulatory Commission (hereinafter referred to as “theCSRC”) the Company issued 400000000 B-shares at HKD 2.38 each in Shenzhen Stock
Exchange on 10 June 1997. On 3 November 1997 the Company issued another 120000000
A-shares (Renminbi common Shares) at RMB 5.40 each and listed in Shenzhen Stock
Exchange since 15 January 1998. The capital shares were totaled to 1136000000 shares.On 14 March 2006 according to the resolutions of the Shareholders’ Meeting regarding share
equity relocation the Share Equity Relocation Scheme Response to Bengang Steel Plate Co.Ltd. about Share Equity Relocation issued by Liaoning Provincial Government State-owned
Asset Administrative Committee Bengang Group – the only holder of non-negotiable
state-owned legal person shares paid the consideration to the current shareholders to obtain
the current option for the 40800000 shares of the total 616000000 shares it was holding.Shareholding positions have been registered with China Securities Depository & Clearing
Corporation Ltd. Shenzhen Office. However the total amount of capital shares of Bengang
Steel Plates Co. Ltd. was not changed through the share equity relocation action.On July 6 2006 the Company received Document No. Zhengjian Gongsi Zi (2006) 126
issued by the China Securities Regulatory Commission (CSRC) on June 30 2006. This
document approved the issuance by the Company of 2 billion RMB-denominated ordinary
shares to Bengang Group for the purpose of acquiring relevant assets from Bengang Group.On the same day Bengang Group received circular Zheng-Jian-Gong-Si-Zi [2006] No. 127
issued by China Securities Regulatory Committee and were exempted for the liability of
138Bengang Steel Plates Co. Ltd. Annual Report 2025
undertaking the purchase offer. The liability was caused by subscribing of the 2 billion new
shares and the total shareholding was thus increased to 2.5752 billion shares (accounting for
82.12% of the total capital shares of the Company). On 28 August 2006 as approved by
China Securities Depository & Clearing Corporation Ltd. Shenzhen Office the registration
and conditional placing procedures of the 2 billion new shares were completed. On 28
September 2006 the privately placed shares were approved by Shenzhen Stock Exchange to
be placed in the stock market. The placing price was RMB4.6733 per share.Approved by the China Securities Regulatory Commission [2017] No. 1476 Bengang Steel
Plate Co. Ltd. privately placed no more than 739371534 RMB ordinary shares (A shares) to
no more than 10 issuers. The non-public offering was completed on 9 February 2018 and
739371532 shares were actually issued. The placing price was RMB5.41 per share.
On August 20 2021 the State-owned Assets Supervision and Administration Commission of
the People's Government of Liaoning Province (hereinafter referred to as Liaoning SASAC)
and Ansteel Group Co. Ltd. (hereinafter referred to as Ansteel) signed the "Agreement on the
Gratuitous Transfer of State-owned Equity in Bengang Group Co. Ltd. between the
State-owned Assets Supervision and Administration Commission of the People's Government
of Liaoning Province and Ansteel Group Co. Ltd." According to the agreement Liaoning
SASAC will transfer its 51% equity in Bengang Group Co. Ltd. (hereinafter referred to as
Bengang Group) to Ansteel Group Co. Ltd. for free. After the completion of this free transfer
Ansteel became the controlling shareholder of Bengang Group and Ansteel indirectly hold
76.67% of the total share capital of Bengang Steel Plates.
As at 31 December 2025 the capital shares were totaled to 4108236253.00 shares.The Company’s uniform social credit code: 91210000242690243E.The Company’s registered address: 16th Renmin Road Pingshan District Benxi Liaoning
Province.The Company’s legal representative: Huang Zuowei.The parent company of Bengang Steel Plates Co. Ltd is Benxi Steel and Iron (Group) Co.Ltd. and the actual controller is Ansteel Group Co. Ltd..Bengang Steel Plates Co. Ltd. belongs to ferrous metal smelting and rolling processing
industry and is mainly involved in producing and trading of ferrous metal products.The financial statements have been approved for reporting by the board of directors of the
Company on 2 April 2026.
139Bengang Steel Plates Co. Ltd. Annual Report 2025
2. Basis of preparation
(1) Basis of preparationThe financial statements have been prepared in accordance with “Accounting Standards forBusiness Enterprises – Basic Standard” and relevant specific standards application materialsinterpretations (together hereinafter referred to as “Accounting Standards for BusinessEnterprises”) issued by the Ministry of Finance and “Information Disclosure Rules forCompanies of securities for public issuance No. 15 – General Regulations for FinancialStatements” issued by the China Securities Regulatory Commission.
(2) Going concern
The financial statements have been prepared on a going concern basis.
3. Significant accounting policies and accounting estimates
The following disclosed content covers the specific accounting policies and accounting
estimates that are adopted by the Company based on the actual production and operation
characteristics. Please see Note (10) Financial instruments (12) Inventory (15) Fixed assets
(18) Intangible assets (24) Revenue under “3. Significant accounting policies andaccounting estimates” for details.
(1) Statement of compliance with China Accounting Standards for Business Enterprises
The financial statements present truly and completely the financial position operation results
and cash flows of the consolidated and parent company during the reporting period in
accordance with China Accounting Standards for Business Enterprises.
(2) Accounting year
The Accounting year is from 1 January to 31 December.
(3) Operating period
The operating period is twelve months.
(4) Functional currency
The Company’s functional currency is RMB.
(5) The accounting treatment for Business combination under/not under common control
Business combination under common control
The assets and liabilities that the Company acquired in a business combination shall be
measured on the basis of their carrying amount of acquiree’s assets liabilities (as well as the
140Bengang Steel Plates Co. Ltd. Annual Report 2025
goodwill arising from the business combination) in the consolidated financial statement of
the ultimate controller on the combining date. As for the balance between the carrying
amount of the net assets obtained by the Company and the carrying amount of the
consideration paid by it (or the total par value of the shares issued) capital reserve needs to
be adjusted. If the capital reserve is not sufficient any excess shall be adjusted against
retained earnings.Business combination not under common control
The Company shall on the acquisition date measure the assets given and liabilities incurred
or assumed by an enterprise for a business combination in light of their fair values and shall
record the balances between them and their carrying amounts into the profits and losses at the
current period. The Company shall recognize the positive balance between the combination
costs and the fair value of the identifiable net assets it obtains from the acquiree as goodwill.The Company shall treat the negative balance between the combination costs and the fair
value of the identifiable net assets it obtains from the acquiree into the profits and losses of
the current period. 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
141Bengang Steel Plates Co. Ltd. Annual Report 2025
subsidiaries and between subsidiaries shall be offset. If internal transactions indicate that
relevant assets have suffered impairment losses such losses shall be fully recognized. The
accounting policy and accounting period of the subsidiaries within the consolidation scope
shall be in accordance with those of the Company. If not it is necessary to make the
adjustment according to the Company’s accounting policies and accounting period when
preparing the consolidated financial statements.The owners’ interests profit or loss and comprehensive income of the subsidiary attributable
to the non-controlling shareholders shall be presented separately in the shareholders’ equity
of the consolidated balance sheet and under the item of net profit of the consolidated
statement of comprehensive income and under the item of total comprehensive income.Where losses assumed by the minority exceed the minority’s interests in the beginning equity
of a subsidiary the excess shall be charged against the minority’s interests.
(1) Increasing new subsidiaries and businesses
If the Company has a new subsidiary due to business combination under common control
during the reporting period it shall adjust the beginning balance in the consolidated
statement of financial position when preparing consolidated statement of financial position.The revenue expenses and profits of the subsidiaries from the acquisition date to the end of
the reporting period are included in the Company’s consolidated statement of
comprehensive income. The cash flow of the subsidiaries from the acquisition date to the
end of the reporting period is included in the Company’s consolidated statement of cash
flows. And meanwhile the Company shall adjust the relevant items of the comparative
financial statements as if the reporting entity for the purpose of consolidation has been in
existence since the date the ultimate controlling party first obtained control.When the Company becomes capable of exercising control over an investee under common
control due to additional investment or other reasons adjustment shall be made as if the
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
142Bengang Steel Plates Co. Ltd. Annual Report 2025
liability and contingent liability determined on the date of acquisition.When the Company becomes capable of exercising control over an investee not under
common control due to additional investment or other reasons the acquirer shall remeasure
its previously held equity interest in the acquiree to its fair value at the acquisition date. The
difference between the fair value and the carrying amount shall be recognized as investment
income for the period when the acquisition takes place. When the previously held equity
investment is accounted for under the equity method any other comprehensive income
previously recognized in relation to the acquiree’s equity changes shall be transferred to
profit or loss for the current period when the acquisition takes place.
(2) Disposing subsidiaries or businesses
1. General treatment
When the Company loses control over an investee due to partial disposal or other reasons
the acquirer shall re-measure the remaining equity interests in the acquiree to its fair value at
the acquisition date. The difference between sums of consideration received for disposal
equity shares and fair value of the remaining shares and sums of share of net assets of the
subsidiary calculated continuously from the acquisition date or the combination date based
on the previous shareholding proportion and goodwill shall be recognized as investment
income for the period when the Company loses control over acquiree. When the previously
held equity investment is accounted for under the equity method any other comprehensive
income previously recognized in relation to the acquiree’s equity changes and other equity
changes rather than changes from net profit other comprehensive income and profit
distribution shall be transferred to investment income for the current period when the
Company loses control over acquiree.
(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:
143Bengang Steel Plates Co. Ltd. Annual Report 2025
a. Confirm the assets held by the company separately and confirm the assets held jointly by
the Company's share;
b. Recognize the liabilities assumed by the Company separately and the liabilities jointly
assumed by the company's share;
c. Recognize the income generated by the sale of the Company’s share of common
operating output;
d. Recognize the revenue generated from the sale of joint operations based on the
Company's share;
e. Confirm the expenses incurred separately and the expenses incurred in the joint operation
according to the Company's share.The Company's investment in joint ventures is accounted for using the equity method. Fordetails see Note (13) Long-term equity investments under “ 3. Significant accountingpolicies and accounting estimates”.
(8) Recognition of cash and cash equivalents
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 transactions
Foreign currency transactions are translated into RMB at the current rate at the day of
transactions.The foreign currency monetary items shall be translated at the spot exchange rate on the
balance sheet date. The balance of exchange arising from the difference between the spot
exchange rate on the balance sheet date and the spot exchange rate at the time of initial
recognition or prior to the balance sheet date except those arising from the raising of special
foreign debt for the purchase or construction of capitalizable assets thus shall be capitalized
according to the borrowing costs capitalization principle shall be recorded into the profits
and losses at the current period.
2. Translation of foreign currency financial statements
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The asset and liability items in the statement of financial position shall be translated at a spot
exchange rate on the balance sheet date. Among the owner's equity items except the ones as
"undistributed profits" others shall be translated at the spot exchange rate at the time when
they are incurred. The income and expense items in the income statement shall be translated
using an exchange rate that is determined in a systematic and reasonable manner and
approximates the spot exchange rate on the transaction date.When disposing an overseas business the Company shall shift the balance which is
presented under the items of the owner's equities in the statement of financial position and
arises from the translation of foreign currency financial statements related to this oversea
business into the disposal profits and losses of the current period.
(10)Financial instruments
The Company recognizes a financial asset financial liability or equity instrument when it
becomes a party to a financial instrument contract.
1. Classification of financial instruments
The Company shall classify financial assets on the basis of both the entity’s business model
for managing the financial assets and the contractual cash flow characteristics of the financial
asset as: financial assets measured at amortised cost financial assets measured at fair value
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.
145Bengang Steel Plates Co. Ltd. Annual Report 2025
The Company may make an election at initial recognition for non-trading equity instrument
investments whether it is designated as a financial asset (equity instrument) that is measured
at fair value through other comprehensive income. The designation is made on the basis of a
single investment and the related investment meets the definition of an equity instrument
from the issuer's perspective.Other financial assets other than these are classified as financial assets measured at fair value
through profit or loss. At the initial recognition in order to eliminate or significantly reduce
accounting mismatches financial assets that should be classified as measured at amortized
value or financial assets measured at fair value through other comprehensive income can be
designated as financial assets measured at fair value through profit or loss.The Company shall classify financial liabilities as financial liabilities measured at amortised
cost and financial liabilities measured at fair value through profit or loss at initial
measurement.
2. Recognition and measurement of financial instruments
(1) Financial assets measured at amortised cost
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.
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(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.
(5) Financial liabilities at fair value through profit or loss
147Bengang Steel Plates Co. Ltd. Annual Report 2025
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.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.
148Bengang Steel Plates Co. Ltd. Annual Report 2025
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
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Only when the prevailing obligations of a financial liability are relieved in all or in part may
the recognition of the financial liability be terminated in all or partly. Where the Company
(debtor) enters into an agreement with a creditor so as to substitute the existing financial
liabilities by way of any new financial liability and if the contractual stipulation regarding
the new financial liability is substantially different from that regarding the existing financial
liability it shall terminate the recognition of the existing financial liability and shall at the
same time recognize the new financial liability.Where the Company makes substantial revisions to part or all of the contractual stipulations
of the existing financial liability it shall terminated the recognition of the existing financial
liability or part of it and at the same time recognize the financial liability after revising the
contractual stipulations as a new financial liability.Where the recognition of a financial liability is totally or partially terminated the Company
shall include into the profits and losses of the current period the difference between the
carrying amount which has been terminated from recognition and the considerations it has
paid (including the non-cash assets it has transferred out and the new financial liabilities it
has assumed).Where the Company buys back part of its financial liabilities it shall distribute on the date
of repurchase the carrying amount of the whole financial liabilities in light of the
comparatively fair value of the part that continues to be recognized and the part whose
recognition has already been terminated. The gap between the carrying amount which is
distributed to the part whose recognition has terminated and the considerations it has paid
(including the noncash assets it has transferred out and the new financial liabilities it has
assumed) shall be recorded into the profits and losses of the current period.
5. Determination of the fair value of the financial assets (liabilities)
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
150Bengang Steel Plates Co. Ltd. Annual Report 2025
identical or similar assets or liabilities. Only when relevant observable inputs are
unavailable or should the Company use unobservable inputs for the asset or liability.
6. Impairment provision of the financial assets
The Company recognize the expected credit loss on financial assets measured at amortized
cost financial assets measured at fair value through other comprehensive income (debt
instruments) financial guarantee contract and so on on the individual or portfolio basis.The Company considers all reasonable and relevant information including past events
current conditions and forecasts of future economic conditions and uses the risk of default
as the weight to calculate the probability-weighted amount of present value of difference
between the cash flow receivable from the contract and the cash flow expected to be received
to confirm the expected credit loss.For account receivables and contract assets recognized according to Accounting Standards
for Business Enterprises No. 14 Revenue whether a significant financing component is
contained or not the Company shall always measure the loss allowance at an amount equal to
lifetime expected credit losses.For lease receivables recognized according to Accounting Standards for Business Enterprises
No. 21 Lease the Company shall always measure the loss allowance at an amount equal to
lifetime expected credit losses.For other financial instruments the Company shall assess changes in the credit risk of the
relevant financial instruments since initial recognition at each balance sheet date.The company compares the risk of default on the balance sheet date of financial instruments
with the risk of default on the date of initial recognition to determine the relative change in
the risk of default during the expected life of the financial instrument to assess whether there
is a significant increase in credit risk of financial assets since the initial recognition.Generally the Company believes that the credit risk of the financial instrument has
significantly increased 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.
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If the credit risk of a financial instrument at the reporting date is relatively low the Company
considers that the credit risk of the financial instrument has not increased significantly since
the initial recognition.If the credit risk of the financial instrument has increased significantly since the initial
confirmation the Company shall measure the loss allowance for a financial instrument at an
amount equal to the lifetime expected credit losses. If the credit risk on a financial instrument
has not increased significantly since initial recognition the Company shall measure the loss
allowance for that financial instrument at an amount equal to 12-month expected credit losses.The increase or reversal amount of loss allowance thus formed shall be included in the
current profits and losses as impairment losses or gains. For financial assets at fair value
through other comprehensive income (debt instruments) loss provisions are recognised in
other comprehensive income and impairment losses or gains are recognised in profit or loss
at the current period without reducing the carrying amount of the financial asset in the
balance sheet.
(11) Recognition criteria and measurement methods for expected credit losses on receivables
1. Receivables with expected credit losses measured on a portfolio basis
Portfolios Basis for determiningportfolios Measurement methods for ECL
Drawing upon historical credit loss experience
and incorporating current conditions as well as
Accounts receivable – Aging forecasts of future economic conditions aaging portfolio matrix correlating accounts receivable aging
with expected credit loss rates is prepared to
calculate expected credit losses.Expected credit losses are calculated by
Related-Party Transactions referencing historical credit loss
Accounts Receivable — within the Scope of the experience—combined with current conditions
Risk-Free Portfolio Company’s Consolidated and forecasts of future economic
Financial Statements conditions—using default risk exposure andexpected credit loss rates over the next 12
months or the entire remaining life.Drawing upon historical credit loss experience
and incorporating current conditions as well as
Other receivables – aging forecasts of future economic conditions a
portfolio Aging matrix correlating accounts receivable aging
with expected credit loss rates is prepared to
calculate expected credit losses.Items within the scope of
the Company's Expected credit losses are calculated by
consolidated financial referencing historical credit loss
Other Receivables — statements—including experience—combined with current conditions
Risk-Free Portfolio inter-company balances and forecasts of future economic
with related parties petty conditions—using default risk exposure and
cash and suspense expected credit loss rates over the next 12
accounts months or the entire remaining life.
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2. Provision matrix of aging and expected credit loss rates for aging portfolios
Aging Accounts receivable ECL(%) Other receivables ECL(%)
Within 1 year (inclusive
same hereafter) 1 1
1-2 years 10 10
2-3 years 20 20
3-4 years 100 100
4-5 years 100 100
Over 5 years 100 100
3. Criteria for Identifying Receivables for Which Expected Credit Losses Are Recognized
on an Individual Basis
For receivables where the credit risk differs significantly from the credit risk of the
portfolio the Company recognizes expected credit losses on an individual basis.
(12) Inventory
1. Inventory classification and costs of inventory
Inventories include material in transit raw material turnover materials finished goods work
in process issue commodity materials for consigned processing etc.Inventory is initially measured at cost. Inventory cost includes purchase cost processing cost
and other expenditures incurred to bring inventory to its current location and state.
2. Valuation method for inventory dispatched
The weighted average method is used to confirm the actual cost of the inventories dispatched.
3. Inventory system
The Company uses perpetual inventory system.
4. Amortization of low-valued consumables and packing materials
(1) Low-valued consumables shall be amortized in full amount on issuance.
(2) Packing materials shall be amortized in full amount on issuance.
5. The basis for confirming the net realizable value of inventories and the methods to
make provision for the inventory impairment loss
On the balance sheet date inventories shall be measured at the lower of cost and net
realizable value. When the cost of inventories is higher than its net realizable value provision
for inventory impairment loss shall be made. The net realizable value refers to the amount of
the estimated selling price of the inventory minus the estimated costs that will occur at the
time of completion estimated selling expenses and relevant taxes in daily activities.
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The net realizable value of inventories (finished goods stock commodity material etc.) held
for direct selling in the daily business activity shall be calculated by deducting the estimated
sale expense and relevant taxes from the estimated sale price of inventories; The net
realizable value of inventories for further processing in the daily business activity shall be
calculated by deducting the estimated cost of completion estimated sale expense and relevant
taxes from the estimated sale price of inventories; The net realizable value of inventories held
for the execution of sales contracts or labor contracts shall be calculated on the ground of the
contract price. If the Company holds more inventories than the quantities subscribed in the
sales contract the net realizable value of the excessive part of the inventories shall be
calculated on the ground of the general sales price.After the inventory impairment is withdrawn if the factors that previously affected the
write-down of the inventory value have disappeared causing the net realizable value of the
inventory to be higher than its book value it shall be reversed within the amount of the
inventory impairment that has been withdrawn and the reverted amount shall be included in
the current profit and loss.
(13) Contract asset
1. Recognition methods and criteria of contract assets
When either party to a contract has performed the Company shall present the contract in
the statement of financial position as a contract asset or a contract liability depending on
the relationship between the Company’s performance and the customer’s payment. If the
Company have the rights to receive consideration (the right is conditioned on factors other
than the passage of time) by transferring goods or services to a customer the entity shall
present the contract as a contract asset. Contract assets and contract liabilities under the
same contract are disclosed in net amount. An entity shall present any unconditional rights
to consideration (only the passage of time is required) separately as a receivable.
2. Expected credit loss of contract assets
For the accounting policy of the expected credit loss of contract assets please refer to Note
(10) 6. Impairment provision of the financial assets under “3. Significant accountingpolicies and accounting estimates”
(14) Long-term equity investment
1. Criteria of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement which exists
154Bengang Steel Plates Co. Ltd. Annual Report 2025
only when decisions about the relevant activities require the unanimous consent of the parties
sharing control. If the Company and other joint venture have joint control of the investee and
have rights to the net assets of the investee the investee is a joint venture of the Company.Significant influence is the power to participate in the financial and operating policy
decisions of the investee but not control or join control of those policies. If the Company
could exert significant influence over the investee the investee is the associate of the
Company.
2. The initial cost of long-term equity investment from business acquisition
(1) Long-term equity investment from business acquisition
For a business combination under common control the initial investment cost of the
long-term equity investment shall be the absorbing party’s share of the carrying amount of
the owner’s equity of the party being absorbed in the consolidated financial statements of the
ultimate controlling party at combination date. The difference between the initial investment
cost and the carrying amount of the previously held equity investment together with the
additional investment cost for new shares at combination date shall be adjusted to the capital
reserve. If the balance of capital reserve is not sufficient any excess shall be adjusted to
retained earnings. When an investor becomes capable of exercising control over an investee
due to additional investment or other reasons the difference between the initial investment
cost recognized in accordance with the above principles and the sum of the book value of the
long-term equity investment before the merger plus the book value of the cost for the further
shares acquired on the merger date shall be adjusted to the capital reserve. If the balance of
capital reserve is not sufficient any excess shall be adjusted to retained earnings.For a business combination not under common control the initial investment cost of the
long-term equity investment shall be the acquisition cost at the acquisition date. When an
investor becomes capable of exercising control over an investee due to additional investment
or other reasons the initial investment cost under the cost method shall be the carrying
amount of 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.
155Bengang Steel Plates Co. Ltd. Annual Report 2025
3. Subsequent measurement and profit or loss recognition
(1) Cost method
The Company adopts cost method for the long term investment in subsidiary company unless
the investment qualifies as held for sale. An investing enterprise shall in accordance with the
attributable share of the net profits or losses of the invested entity recognize the investment
profits or losses except the dividend declared but unpaid which is included in the payment
when acquiring the investment.
(2) Equity method
A long-term equity investment in an associate or a joint venture shall be accounted for using
the equity method. Where the initial investment cost of a long-term equity investment
exceeds investor’s interest in the fair values of an investee’s identifiable net assets at the
acquisition date no adjustment shall be made to the initial investment cost. Where the initial
cost is less than the investor’s interest in the fair values of the investee’s identifiable net
assets at the acquisition date the difference shall be credited to profit or loss for the current
period and the cost of long-term equity investment shall be adjusted accordingly.The Company shall recognize its share of the investee’s net profits or losses as well as its
share of the investee’s other comprehensive income as investment income or losses and other
comprehensive income and adjust the carrying amount of the investment accordingly. The
carrying amount of the investment shall be reduced by the portion of any profit distributions
or cash dividends declared by the investee that is attributable to the investor. The investor’s
share of the investee’s owners’ equity changes other than those arising from the investee’s
net profit or loss other comprehensive income or profit distribution and the carrying amount
of the long-term equity investment shall be adjusted accordingly.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
156Bengang Steel Plates Co. Ltd. Annual Report 2025
transaction of investment or sale of assets is a business. Any losses resulting from
transactions between the investor and investee which are attributable to asset impairment
shall be recognized in full.The company’s net losses incurred by joint ventures or associates in addition to assuming
additional loss obligations are limited to the book value of long-term equity investments and
other long-term equity that essentially constitutes net investment in joint ventures or
associates. If a joint venture or associated enterprise realizes net profits in the future the
company resumes recognizing its share of profits after the share of profits makes up for the
share of unrecognized losses.
(15) Fixed assets
1. Recognition of Fixed assets
The term "fixed assets" refers to the tangible assets held for the sake of producing
commodities rendering labor service renting or business management and of which useful
life is in excess of one fiscal year. No fixed asset may be recognized unless it simultaneously
meets the conditions as follows:
(1) The economic benefits pertinent to the fixed asset are likely to flow into the enterprise;
and
(2) The cost of the fixed asset can be measured reliably.
Fixed assets are initially measured at cost (and considering the impact of expected
dismantling cost factors).Subsequent expenditures related to fixed assets are included in the cost of fixed assets when
the related economic benefits are likely to flow in and their costs can be reliably measured;
the book value of the replaced part is derecognized; all other subsequent expenditures are
incurred shall be included in the current profit and loss.
2. Fixed assets depreciation
Fixed assets are depreciated under the straight line method. The depreciation rate is
determined according to the category of assets the useful life and the expected residual rate.If the components of the fixed assets have different useful lives or provide the economic
benefits in a different way then different depreciation rate or method shall be applied and the
depreciation of the components shall be calculated separately.Details of classification depreciation period residual value rate and annual depreciation rate
are as follows:
Category Depreciation method Depreciation Residual Value Depreciation
157Bengang Steel Plates Co. Ltd. Annual Report 2025
Period Rate (%) Rate
(%)
Plants and Buildings straight line method 40 years 5.00 2.38
Machinery straight line method 17-24 years 5.00 3.96-5.59
Transportation and
straight line method 5-12 years 5.00 7.92-19.00
other equipment
3. Disposal of fixed assets
When a fixed asset is disposed or it is expected that no economic benefits will be generated
through use or disposal the recognition of fixed asset shall be de terminated. The amount of
disposal income of fixed assets raising from sell transfer scrapping or damage shall be
included in the current profit and loss after deducting its book value and related taxes.
(16) Construction in progress
Construction in progress is measured at the actual cost incurred. The actual cost includes
construction costs installation costs borrowing costs that meet the capitalization conditions
and other necessary expenditures incurred before the construction in progress reaches its
intended use status. Construction in progress is transferred to fixed asset when it has reached
its working condition for its intended use and depreciation will be accrued from the next
month.
(17) Borrowing costs
1. Principle of the recognition of capitalized borrowing costs
Where the borrowing costs incurred to an enterprise can be directly attributable to the
acquisition and construction or production of assets eligible for capitalization it shall be
capitalized and recorded into the costs of relevant assets. Other borrowing costs shall be
recognized as expenses on the basis of the actual amount incurred and shall be recorded into
the current profits and losses.Assets eligible for capitalization refer to the fixed assets investment property inventories and
other assets of which the acquisition and construction or production may take quite a long
time to get ready for its intended use or for sale.
2. The capitalization period of borrowing costs
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.
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The borrowing costs shall not be capitalized unless they simultaneously meet the following
requirements:
(1) The asset disbursements have already incurred which shall include cash transferred
non-cash assets or interest bearing debts paid for the acquisition and construction or
production activities for preparing assets eligible for capitalization;
(2) The borrowing costs has already incurred; and
(3) The acquisition and construction or production activities which are necessary to prepare
the asset for its intended use or sale have already started.When the qualified asset under acquisition and construction or production is ready for the
intended use or sale the capitalization of the borrowing costs shall be ceased.
3. The suspension of capitalization of borrowing costs
Where the acquisition and construction or production of a qualified asset is interrupted
abnormally and the interruption period lasts for more than 3 months the capitalization of the
borrowing costs shall be suspended. If the interruption is a necessary step for making the
qualified asset under acquisition and construction or production ready for the intended use or
sale the capitalization of the borrowing costs shall continue. The borrowing costs incurred
during such period shall be recognized as expenses and shall be recorded into the profits and
losses of the current period till the acquisition and construction or production of the asset
restarts.
4. Method of calculating the capitalization rate and capitalized amount of borrowing costs
For interest expense (minus the income of interests earned on the unused borrowing loans as
a deposit in the bank or investment income earned on the loan as a temporary investment)
and the ancillary expense incurred to a specifically borrowed loan those incurred before a
qualified asset under acquisition construction or production is ready for the intended use or
sale shall be capitalized at the incurred amount when they are incurred and shall be recorded
into the costs of the asset eligible for capitalization.The Company shall calculate and determine the to-be-capitalized amount of interests on the
general borrowing by multiplying the weighted average asset disbursement of the part of the
accumulative asset disbursements minus the general borrowing by the capitalization rate of
the general borrowing used. The capitalization rate shall be calculated and determined in light
of the weighted average interest rate of the general borrowing.
159Bengang Steel Plates Co. Ltd. Annual Report 2025
During the capitalization period the exchange difference between the principal and interest
of the foreign currency special loan is capitalized and included in the cost of the assets that
meet the capitalization conditions. Exchange differences arising from the principal and
interest of foreign currency borrowings other than foreign currency special borrowings are
included in the current profits and losses.
(18) Intangible Assets
1. Measurement of Intangible Assets
(1) Initial measurement is based on cost upon acquisition
The cost of an intangible asset on acquisition include the purchase price relevant taxes and
other necessary disbursements which may be directly attributable to bringing the intangible
asset to the conditions for the expected purpose.
(2) Subsequent Measurement
The Company shall analyze and judge the beneficial period of intangible assets upon
acquisition.Intangible assets with finite beneficial period shall be amortized under the straight-line
method during the period when the intangible asset can bring economic benefits to the
enterprise. If it is unable to estimate the beneficial period of the intangible asset it shall be
regarded as an intangible asset with uncertain service life and shall not be amortized.
2. Estimated useful lives of intangible assets with limited useful lives
Amortization Residual value
Item Estimated useful life Criteria
method (%)
Straight line Land use right
Land use right 50 years
method certificate
Straight line Estimated useful
Software 10 years
method life
3. Classification criteria for internal research phase and development phase
The expenditures for its internal research and development projects of an enterprise shall be
classified into research expenditures and development expenditures.Research phase refers to the phase of creative and planned investigation to acquire and study
to acquire and understand new scientific or technological knowledge.
160Bengang Steel Plates Co. Ltd. Annual Report 2025
Development phase refers to the phase during which the result of research phase or other
knowledge is applied into certain projects or designs for the manufacturing of new or
substantially improved material device and product before commercial manufacturing and
use.
4. Criteria of capitalization of development phase expenditures
Expenditures incurred during the research phase are recognized in profit or loss for the period
when incurred. Expenditures incurred during the research phase shall be capitalized if they
meet the following conditions at the same time. If the expenditures incurred during the
development phase do not meet the following conditions they shall be included in the current
period's profit and loss.
(1) It is technically feasible to complete the intangible asset so that it can be used or sold.
(2) The Company intent to complete the intangible asset and use or sell it.
(3) The way intangible assets generate economic benefits including being able to prove that
there is a market for the products produced by using the intangible assets or the
intangible assets themselves has market. If the intangible assets will be used internally it
should be able to prove that the intangible assets will be useful.
(4) The company has sufficient technical financial and other resources to complete the
development of the intangible asset and is able to use or sell the intangible asset.
(5) The expenditure attributable to the development phase of the intangible asset can be
measured reliably.If it is impossible to distinguish between expenditures in the research phase and expenditures
in the development phase all research and development expenditures incurred shall be
included in the current period's profit and loss.
(19) Impairment of long-term assets
For long-term assets such as long-term equity investments investment property under the
cost model fixed assets construction in progress right-of-use assets intangible assets with
limited useful lives and oil gas assets etc. the Company shall perform impairment tests at the
period end if there is clear indication of impairment. If the recoverable amounts of long-term
assets are less than their carrying amounts the carrying amounts of the assets shall be written
down to their recoverable amounts. The write-downs are recognized as impairment losses and
charged to current profit and loss. The recoverable amounts of long-term assets are the higher
of their fair values less costs to sell and the present values of the future cash flows expected
to be derived from the assets. The Company shall estimate its recoverable amount on an
individual basis. Where it is difficult to do so it shall determine the recoverable amount ofthe assets on the basis of the asset group to which the asset belongs. The term "assets group”
refers to a minimum combination of assets by which the cash flows could be generated
161Bengang Steel Plates Co. Ltd. Annual Report 2025
independently
The goodwill intangible assets with uncertain useful life and intangible assets not meeting
the expected condition for use shall be subject to an impairment test at least at the end of each
year.When the Company makes an impairment test of assets it shall as of the purchasing day
apportion the carrying value of the business reputation formed by merger of enterprises to the
relevant asset groups by a reasonable method. Where it is difficult to do so it shall be
apportioned to the relevant combinations of asset groups. A related group of assets or
combination of asset groups is an asset group or combination of asset groups that can benefit
from the synergy effect of a business combination.When making an impairment test on the relevant asset groups or combination of asset groups
containing business reputation if any evidence shows that the impairment of asset groups or
combinations of asset groups is possible the Company shall first make an impairment test on
the asset groups or combinations of asset groups not containing business reputation calculate
the recoverable amount compare it with the relevant carrying value and recognize the
corresponding impairment loss. Then the Company shall make an impairment test of the asset
groups or combinations of asset groups containing business reputation and compare the
carrying value of these asset groups or combinations of asset groups (including the carrying
value of the business reputation apportioned thereto) with the recoverable amount. Where the
recoverable amount of the relevant assets or combinations of the asset groups is lower than
the carrying value thereof it shall recognize the impairment loss of the business reputation.Impairment losses on long-term assets shall not be reversed in subsequent accounting periods
once recognized.
(20) Long-term deferred expense
The long-term deferred expense refers to the expenses incurred but shall be borne by current
and subsequent accounting period which is more than one year.
(21) Contract liability
When either party to a contract has performed the Company shall present the contract in the
statement of financial position as a contract asset or a contract liability depending on the
relationship between the Company’s performance and the customer’s payment. If a customer
pays consideration or the Company has a right to an amount of consideration before the
Company transfers a good or service to the customer the Company shall present the contract
162Bengang Steel Plates Co. Ltd. Annual Report 2025
as a contract liability. Contract assets and contract liabilities under the same contract are
disclosed in net amount.
(22) Employee benefits
1. Accounting treatment for short employee benefit
The Company shall recognise in the accounting period in which an employee provides
service actually occurred short-term employee benefits as a liability with a corresponding
charge to the profit or loss or cost of an asset for the current period.Payments made by an enterprise of social security contributions for employees payments of
housing funds and union running costs employee education costs provided in accordance
with relevant requirements shall in the accounting period in which employees provide
services be calculated according to prescribed bases and percentages in determining the
amount of employee benefits.The employee welfare expenses incurred by the company are included in the current profit
and loss or related asset costs based on the actual amount when they actually occur. Among
them non-monetary benefits are measured at fair value.
2. Accounting treatment of post-employment benefits
(1) Defined contribution plan
The Company shall recognize in the accounting period in which an employee provides
service pension fund and unemployment fund for employees as a liability according to
the local government regulations. The amount shall be calculated according to local
prescribed bases and percentages in determining the amount of employee benefits with a
corresponding charge to the profit or loss or cost of an asset for the current period. In
addition the Company also participates in the enterprise annuity plan/supplementary
pension insurance fund approved by relevant state departments. The Company pays a
certain proportion of the total salary of employees to the annuity plan/local social
insurance agency and the corresponding expenses are included in the current profit and
loss or related asset cost.
(2) Defined benefit plan
In accordance with the formula determined by the Projected Unit Credit Method the
Company attributes the benefit obligations arising from defined benefit plans to the
periods during which employees render services and records them in current profit or
loss or as part of the cost of relevant assets.The deficit or surplus resulting from the present value of the defined benefit plan
163Bengang Steel Plates Co. Ltd. Annual Report 2025
obligations less the fair value of the defined benefit plan assets is recognized as a net
defined benefit liability or net defined benefit asset. Where a defined benefit plan has a
surplus the Company measures the net defined benefit asset at the lower of the plan
surplus and the asset ceiling.All defined benefit obligations—including those expected to be settled within twelve
months after the end of the reporting period in which employees render the related
service—are discounted using market yields at the balance sheet date on government
bonds or high-quality corporate bonds in an active market that match the currency and
term of the defined benefit obligations.Service costs arising from defined benefit plans as well as the net interest on the net
defined benefit liability or asset are recognized in current profit or loss or included in the
cost of relevant assets. Changes arising from the remeasurement of the net defined
benefit liability or asset are recognized in other comprehensive income and are not
subsequently reclassified to profit or loss in future accounting periods; upon the
termination of the defined benefit plan the amounts originally recognized in other
comprehensive income are transferred in full within equity to retained earnings.Upon the settlement of a defined benefit plan a settlement gain or loss is recognized
based on the difference between the present value of the defined benefit obligation and
the settlement price both determined as of the settlement date.
3. Accounting treatment of termination benefits
The Company shall recognize an employee benefits liability for termination benefits with a
corresponding charge to the profit or loss for the current period at the earlier of the following
dates: when the Company cannot unilaterally withdraw the offer of termination benefits
because of an employment termination plan or a curtailment proposal; or when the Company
recognizes costs or expenses related to a restructuring that involves the payment of
termination benefits.
(23) Estimated liabilities
The obligation pertinent to a contingency shall be recognized as an estimated liability when
the following conditions are satisfied simultaneously:
(1) That obligation is a current obligation of the enterprise;
(2) It is likely to cause any economic benefit to flow out of the enterprise as a result of
performance of the obligation; and
(3) The amount of the obligation can be measured in a reliable way.
164Bengang Steel Plates Co. Ltd. Annual Report 2025
The estimated debts shall be initially measured in accordance with the best estimate of the
necessary expenses for the performance of the current obligation.To determine the best estimate an enterprise shall take into full consideration of the risks
uncertainty time value of money and other factors pertinent to the Contingencies. If the time
value of money is of great significance the best estimate shall be determined after
discounting the relevant future outflow of cash.When all or some of the expenses necessary for the liquidation of an estimated debts of an
enterprise is expected to be compensated by a third party the compensation shall be
separately recognized as an asset only when it is virtually certain that the reimbursement will
be obtained. The amount recognized for the reimbursement shall not exceed the book value
of the estimated debts.The company reviews the book value of the estimated liabilities on the balance sheet date. If
there is conclusive evidence that the book value does not reflect the current best estimate the
book value will be adjusted according to the current best estimate.
(24) Revenue
(1) The general principle of revenue recognition and measurement
The company shall recognise revenue when (or as) the company satisfies a performance
obligation when (or as) the customer obtains control of a promised good or service. Control
of a promised good or service refers to the ability to direct the use of and obtain substantially
all of the remaining benefits from it.If the contract contains two or more performance obligations the company shall allocate the
transaction price to each individual performance obligation based on the relative proportion
of the stand-alone selling price of the goods or services promised by each individual
performance obligation on the date of the contract. The company measures revenue based on
the transaction price allocated to each individual performance obligation.The transaction price is the amount of consideration to which the company expects to be
entitled in exchange for transferring promised goods or services to a customer excluding
amounts collected on behalf of third parties or amounts expected to be returned to customers.The company shall consider the terms of the contract and its customary business practices to
determine the transaction price. When determining the transaction price the company shall
consider the effects of all of the following: variable consideration the existence of a
significant financing component in the contract non-cash consideration and consideration
165Bengang Steel Plates Co. Ltd. Annual Report 2025
payable to a customer. The company determines the transaction price that includes variable
consideration at an amount that does not exceed the amount of accumulated recognized
revenue that is unlikely to be materially reversed when the relevant uncertainty is eliminated.If there is a significant financing component in the contract the company shall recognise
revenue at an amount that reflects the price that a customer would have paid for the promised
goods or services if the customer had paid cash for those goods or services when (or as) they
transfer to the customer and use the effective interest method to amortize the difference
between the transaction price and the contract consideration during the contract period.The company transfers control of a good or service over time and therefore satisfies a
performance obligation and recognises revenue over time if one of the following criteria is
met. Otherwise the company satisfies the performance obligation at a point in time.(a) the customer simultaneously receives and consumes the benefits provided by the
company’s performance as the company performs;
(b) the company’s performance creates or enhances an asset that the customer controls as the
asset is created or enhanced; or
(c) the company’s performance does not create an asset with an alternative use to the
company and the company has an enforceable right to payment for performance completed to
date.The company shall recognise revenue over time by measuring the progress towards complete
satisfaction of that performance obligation except where the performance progress cannot be
reasonably determined. The company considers the nature of the goods or services and
adopts the output method or the input method to determine the progress of performance.Where the performance progress cannot be reasonable determined but the company expects
to recover the costs incurred in satisfying the performance obligation the company shall
recognise revenue only to the extent of the costs incurred until such time that it can
reasonably measure the outcome of the performance obligation.For performance obligations satisfied at a certain point in time the company shall recognises
revenue at the point when the customer obtains control of the relevant goods or services. To
determine the point in time at which a customer obtains control of a promised goods or
services the company shall consider requirements as follows:
(a) The company has a present right to payment for the promised goods or services and the
customer is presently obliged to pay for that;
(b) The company has transferred the legal title of the goods to the customer that is the
customer has the legal title to the goods;
(c) The company has transferred physical possession of the goods to the customer that is the
customer has taken possession of the goods;
166Bengang Steel Plates Co. Ltd. Annual Report 2025
(d) The company has transferred the significant risks and rewards of ownership of the goods
to the customer that is the customer has the significant risks and rewards of ownership of the
goods;
(e) The customer has accepted the promised goods or services.The Company determines whether it is the principal or agent when engaging in a transaction
based on whether it has control over the goods or services before transferring them to the
customer. If the Company is able to control the goods or services before transferring them to
the customer the Company is the principal and recognizes revenue based on the total
consideration received or receivable; otherwise the Company is the agent and recognizes
revenue based on the amount of commissions or fees it expects to be entitled to receive.
(2) The specific criteria of revenue recognition and measurement
Commodity sales contracts between companies and customers usually only include
performance obligations for the transfer of steel and other commodities. This type of
performance obligation is a performance obligation performed at a certain point in time. The
Company recognizes revenue when the customer obtains control of the relevant goods or
services. When judging whether the customer has obtained control of goods or services the
company considers the following signs:
The company obtains the current right of collection of receivables the legal ownership of the
goods is transferred to the customer the physical assets of the goods are transferred to the
customer the company transfers the main risks and rewards of the ownership of the goods to
the customer and the customer has accepted the goods.
(25) Contract costs
Contract costs include costs to fulfill a contract and incremental costs of obtaining a contract.If the costs incurred in fulfilling a contract with a customer are not within the scope of
another Standard for example Inventories Property Plant and Equipment or Intangible
Assets the company shall recognise an asset from the costs incurred to fulfil a contract only
if those costs meet all of the following criteria:
(a) the costs relate directly to a contract or to an expected contract;
(b) the costs generate or enhance resources of the Company that will be used in satisfying
performance obligations in the future; and
(c) the costs are expected to be recovered.The company shall recognise as an asset the incremental costs of obtaining a contract with a
customer if the company expects to recover those costs.
167Bengang Steel Plates Co. Ltd. Annual Report 2025
An asset recognised in accordance with contract costs shall be amortised in consistent with
the transfer to the customer of the goods or services to which the asset relates. The company
may recognise the incremental costs of obtaining a contract as an expense when incurred if
the amortisation period of the asset is one year or less.The company shall recognise an impairment loss in profit or loss to the extent that the
carrying amount of an asset related to contract assets exceeds:
(a) the remaining amount of consideration that the company expects to receive in exchange
for the goods or services to which the asset relates; less
(b) the costs that relate directly to providing those goods or services and that have not been
recognised as expenses.The company shall recognise in profit or loss a reversal of some or all of an impairment loss
previously recognised when the impairment conditions no longer exist or have improved. The
increased carrying amount of the asset shall not exceed the carrying amount that if no
impairment loss had been recognised previously.
(26) Government Subsidies
1. Types
A government subsidy means the monetary or non-monetary assets obtained free of charge
by the Company from the government. Government subsidies consist of the government
subsidies pertinent to assets and government subsidies pertinent to income.Government subsidies related to assets are government subsidies whose primary
condition is that an entity qualifying for them should purchase construct or otherwise
acquire long-term assets. The government subsidies related to incomes refers to
government subsidies other than those related to assets.
2. Recognition
Government subsidies are recognized when the Company is able to meet the conditions
attached to them and is able to receive them.
3. Accounting treatment
168Bengang Steel Plates Co. Ltd. Annual Report 2025
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.
(27) Deferred tax assets and deferred tax liabilities
Income tax includes current income tax and deferred income tax. Except for income tax
arising from business combinations and transactions or events directly recorded in owners'
equity (including other comprehensive income) the Company records current income tax
and deferred income tax in current profit or loss.
169Bengang Steel Plates Co. Ltd. Annual Report 2025
Deferred income tax assets and deferred income tax liabilities are calculated and confirmed
based on the difference (temporary difference) between the tax base of assets and liabilities
and their book value.An enterprise shall recognize the deferred income tax assets arising from a deductible
temporary difference to the extent of the amount of the taxable income which it is most
likely to be obtained and which can be deducted from the deductible temporary difference.As for any deductible loss or tax deduction that can be carried forward to the next year the
corresponding deferred income tax assets shall be determined to the extent that the amount
of future taxable income to be offset by the deductible loss or tax deduction to be likely
obtained.All taxable temporary differences shall be recognized as deferred tax liabilities with certain
limited exceptions.Exceptions when deferred tax assets and deferred tax liabilities are not recognized include:
- Initial recognition of goodwill;
- A transaction or event that is neither a business combination nor affects accounting profit
and taxable income (or deductible loss) when it occurs and the assets and liabilities
initially recognized do not result in equal taxable temporary differences and deductible
temporary differences.For taxable temporary differences related to investments in subsidiaries associates and joint
ventures deferred income tax liabilities are recognized unless the company can control the
timing of the reversal of the temporary differences and the temporary differences are likely
not to be transferred back in the foreseeable future. For deductible temporary differences
related to investments in subsidiaries associates and joint ventures when the temporary
differences are likely to be reversed in the foreseeable future and are likely to be used to
deduct the taxable income of deductible temporary differences in the future income tax
assets are recognized.At the balance sheet date deferred income tax assets and deferred income tax liabilities are
measured at the applicable tax rate during the period when the relevant assets are expected
to be recovered or the relevant liabilities are expected to be recovered in accordance with
the provisions of the tax law.
170Bengang Steel Plates Co. Ltd. Annual Report 2025
At the balance sheet date the company reviews the book value of deferred income tax assets.If it is probable that sufficient taxable income cannot be obtained in the future to offset the
benefits of deferred income tax assets the book value of the deferred income tax assets shall
be written down. When it is possible to obtain sufficient taxable income the reduced
amount shall be reversed.When the Company has the statutory right to offset and intend to offset or obtain assets and
pay off liabilities at the same time the current income tax assets and current income tax
liabilities are presented at the net amount after offsetting.An entity shall offset deferred tax assets and deferred tax liabilities if and only if: (a) the
entity has a legally enforceable right to set off current tax assets against current tax
liabilities; and (b) deferred income tax assets and deferred income tax liabilities are related
to income taxes levied by the same tax collection and administration department on the
same taxpayer or to different taxpayers but in each future period of significant deferred
income tax assets and liabilities reversal the taxpayers involved intend to settle the current
income tax assets and liabilities on a net basis or to acquire assets and settle liabilities at the
same time.
(28) Leases
Lease refers to a contract in which the lessor transfers the right to use the asset to the lessee
within a certain period of time to obtain consideration.On the starting date of the contract the company assesses whether the contract is a lease or
contains a lease. If the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration the contract is or contains a lease.For a contract that contains a lease component and one or more additional lease or non-lease
components a lease shall allocate the consideration in the contract to each lease component
on the basis of the relative stand-alone price of the lease component and the aggregate
stand-alone price of the non-lease components.
1. The company as the lessee
(1) Right-of-use assets
On the start date of the lease term the company recognizes the right-of-use asset for leases
other than short-term leases and low-value asset leases. Right-of-use assets are initially
measured at cost.
171Bengang Steel Plates Co. Ltd. Annual Report 2025
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. (19) Long-term asset impairment" in this note and conducts
accounting treatment for the identified impairment loss.
(2) Lease liabilities
At the beginning of the lease term the company recognizes lease liabilities for leases other
than short-term leases and leases of low-value assets. Lease liabilities are initially measured
based on the present value of the payments that are not paid at that date. Lease payments
include:
1) Fixed payment (including in-substance fixed payment) less any lease incentives
receivable;
2) Variable lease payments that depend on an index or a ratio;
3) Amounts expected to be payable by the lease under residual value guarantees;
4) The exercise price of the purchase option if the lease is reasonably certain to exercise that
option;
5) Payments of penalties for terminating the lease if the lease term reflects the lessee
exercising an option to terminate the lease;
The company uses the interest rate implicit in the lease as the discount rate but if the interest
172Bengang Steel Plates Co. Ltd. Annual Report 2025
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
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
173Bengang Steel Plates Co. Ltd. Annual Report 2025
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
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
174Bengang Steel Plates Co. Ltd. Annual Report 2025
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 financial
lease and the company will perform accounting treatment in accordance with the policy of
“3. (10) Financial Instruments” in this Note on the modification or re-negotiation of the
contract.
3. Sale and leaseback transaction
The company evaluates and determines whether the asset transfer in the sale and leaseback
transaction is a sale in accordance with the principles described in "3. (24) Revenue" of this
Note.
(1) As the lessee
If the transfer of an asset in the sale and leaseback transaction is a sale the company as the
lessee measures the right-of-use asset arising from the leaseback at the proportion of the
175Bengang Steel Plates Co. Ltd. Annual Report 2025
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. (28)
Leases 1. The Company as Lessee. When subsequently measuring the lease liabilities arising
from a sale and leaseback the Company determines the lease payments or the modified lease
payments in a manner that does not result in the recognition of gains or losses related to the
right of use acquired through the leaseback.If the asset transfer in the sale and leaseback transaction does not belong to the sale the
company as the lessee continues to recognize the transferred assets and at the same time
recognize a financial liability equal to the transfer proceeds. For the accounting treatment of
financial liabilities please refer to "3. (10) Financial Instruments" in this note.
(2) As a lessor
If the asset transfer in the sale and leaseback transaction is a sale the company acts as the
lessor to account for the purchase of the asset and the asset lease is accounted for in
accordance with the aforementioned "2. The company as the lessor" policy; in the sale and
leaseback transaction If the transfer of assets is not a sale the company as the lessor does not
recognize the transferred assets but recognizes a financial asset equal to the transfer proceeds.For the accounting treatment of financial assets please refer to "3. (10) Financial
Instruments" in this note.
(29) Debt restructuring
1. The company as the creditor
The Company terminates the recognition of claims when the contractual right to collect cash
flows from the claims terminates. If debt is restructured by using assets to pay off debts or by
converting debts into equity instruments the company will recognize the relevant assets
when they meet their definition and recognition conditions.If debt restructuring is carried out by repaying debts with assets the transferred non-financial
assets shall be measured at cost at initial recognition.The Company shall recognize and measure the restructured claims in accordance with "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
176Bengang Steel Plates Co. Ltd. Annual Report 2025
with Note III. (10) Financial Instruments. It shall then allocate the net amount of the fair
value of the waived claims after deducting the recognized amounts of the acquired financial
assets and the restructured claims in accordance with the fair value ratio of the various assets
other than the acquired financial assets and on this basis determine the cost of each asset
separately in accordance with the above method. The difference between the fair value and
the carrying amount of the waived claim should be included in the current profit and loss.
2. The company as the debtor
The Company derecognizes a debt when the present obligation for the debt is discharged.If debt restructuring is carried out by settling debts with assets the Company shall terminate
the recognition when the relevant assets and the debts settled meet the conditions for
termination of recognition and the difference between the book value of the debts settled and
the book value of the transferred assets shall be included in the current profit and loss.In case of debt restructuring by converting debt into equity instruments the Company shall
derecognize the debts paid when they meet the derecognition conditions. Equity instrument
shall be measured at fair value at initial recognition. If the fair value of an equity instrument
cannot be measured reliably it is measured at the fair value of the debt settled. The difference
between the carrying amount of the debt settled and the amount recognized as an equity
instrument should be recognized in the current period's profit or loss.If debt restructuring is carried out by modifying other terms the Company shall recognize
and measure the restructured debt in accordance with “III. (10) Financial Instruments” of this
Note.If multiple assets are used to repay debts or a combination is used to restructure debt the
company shall confirm and measure equity instruments and restructured debts in accordance
with the aforementioned methods. The difference between the carrying amount of the debt
settled and the sum of the carrying amount of the transferred assets and the recognized
amount of the equity instruments and restructured debts is included in the current period's
profit and loss.
(30) Other Significant Accounting Policies and Accounting Estimates
Major accounting estimates and judgments
When preparing financial statements the Company's management needs to use estimates
and assumptions which will affect the application of accounting policies and the amount of
177Bengang Steel Plates Co. Ltd. Annual Report 2025
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 Company regularly monitors and reviews assumptions related to the
calculation of expected credit losses.
2. Inventory ImpairmentAs mentioned in note 3 (12) Inventory under “3 Significant accounting policies andaccounting estimates” the Company regularly estimates the net realizable value of the
inventory and recognizes the difference in inventory cost higher than the net realizable
value. When estimating the net realizable value of inventory the Company considers the
purpose of holding the inventory and uses the available information as the basis for
estimation including the market price of the inventory and the Company's past operating
costs. The actual selling price completion cost sales expenses and taxes of the inventory
may change according to changes in market sales conditions production technology or the
actual use of the inventory. Therefore the amount of inventory depreciation reserve may
change according to the above reasons. Adjustments to the inventory impairment will affect
the current profit and loss.
3. Impairment of other assets except inventory and financial assets
As mentioned in note 3 (19) Long-term Asset Impairment the company performs an
impairment assessment on assets other than inventory and financial assets on the balance
sheet date to determine whether the recoverable amount of the asset has fallen to a lower
level than its book value. If the situation shows that the book value of the long-term assets
178Bengang Steel Plates Co. Ltd. Annual Report 2025
may not be fully recovered the relevant assets will be deemed to be impaired and the
impairment loss will be recognized accordingly.The recoverable amount is the higher of the net value of the fair value of the asset (or asset
group) minus the disposal expenses and the present value of the asset (or asset group) 's
expected future cash flow. Because the Company cannot reliably obtain the public market
price of assets (or asset groups) and cannot reliably and accurately estimate the fair value
of assets. Therefore the Company regards the present value of the expected future cash
flow as the recoverable amount. When estimating the present value of future cash flows it
is necessary to make a significant judgment on the output selling price related operating
costs of the products produced by the asset (or asset group) and the discount rate used in
calculating the present value. The Company will use all available relevant information
when estimating the recoverable amount including the prediction of output selling price
and related operating costs based on reasonable and supportable assumptions.
4. Depreciation and amortization of assets such as fixed assets and intangible assets
As described in note 3 (15) Fixed Assets and note 3 (18) Intangible Assets the company
shall accrue depreciation for the fixed assets and amortization for intangible assets within
the useful life after considering their residual value. The company regularly reviews the
useful life of related assets to determine the amount of depreciation and amortization
expenses to be included in each reporting period. The useful life of assets is determined by
the company based on past experience with similar assets and in combination with
anticipated technological changes. If the previous estimates change significantly the
depreciation and amortization expenses will be adjusted in the future.
5. Deferred tax assets
When it is estimated that sufficient taxable income can be obtained in the future to use the
unrecovered tax losses and deductible temporary differences the relevant deferred tax
assets are calculated and confirmed on the basis of the applicable income tax rate during the
period when the asset is expected to be recovered and the amount of taxable income is
limited to deductible tax losses and deductible temporary differences likely to be obtained
by the Company. The Company needs to use judgment to estimate the time and amount of
future taxable income and make reasonable estimates and judgments on the future
applicable income tax rate according to the current tax policy and other related policies to
determine the deferred tax assets that should be recognized. If the time and amount of
profits actually generated in the future period or the actual applicable income tax rate are
different from the management's estimate the difference will have an impact on the amount
of deferred tax assets.
179Bengang Steel Plates Co. Ltd. Annual Report 2025
(31) Criteria of Materiality
Items Materiality Criteria
Significant The company considers accounts receivables exceeding RMB 5 million as
Receivables significant accounts receivables.Significant Accounts The company considers accounts payables exceeding RMB 5 million as
Payables significant accounts payables.Significant Other The company considers other payables exceeding RMB 5 million as
Payables significant other payables.The company regards the projects with the highest amount transferred to
Significant
fixed assets or the top 10 projects with the final balance of the current
Construction in
period and the amount exceeding RMB 50 million as significant
Progress
construction in progress.Significant
The Company regards development expenditures exceeding RMB 5 million
Development
as significant development expenditures.Expenditure
Significant Joint The company considers joint ventures or associated companies with an
Ventures or Associated ending balance of more than RMB 100 million as important joint ventures
Companies or associated companies.Subsidiaries whose total assets/total revenue/total profit exceed 15% of the
Significant
group's total assets/total revenue/total profit are considered as significant
Subsidiaries
subsidiaries.
(32) Change of significant accounting policy and accounting estimate
1. Change of major accounting policy during this reporting period
Implementing the Provisions of the "Q&A on the Implementation of Accounting
Standards for Financial Instruments" Regarding Accounting Treatment for Standard
Warehouse Receipt Trading
On July 8 2025 the Ministry of Finance issued Implementation Questions and Answers
regarding the Accounting Treatment of Standard Warehouse Receipt Trading. It explicitly
stipulates that in accordance with the Accounting Standards for Financial Instruments:
Recognition and Measurement if an enterprise frequently enters into contracts for the
purchase and sale of standard warehouse receipts on a futures exchange—with the aim of
earning price spreads and without taking physical delivery of the commodities underlying
the receipts—this typically indicates that the enterprise has an established practice of
180Bengang Steel Plates Co. Ltd. Annual Report 2025
reselling the subject matter of the contract shortly after receipt in order to profit from
short-term price fluctuations. Consequently the enterprise shall treat such contracts for the
purchase and sale of standard warehouse receipts as financial instruments and apply the
accounting treatment prescribed by the Accounting Standards for Financial Instruments:
Recognition and Measurement. If an enterprise resells standard warehouse receipts shortly
after acquiring them pursuant to the aforementioned contracts it shall not recognize sales
revenue; instead the difference between the consideration received and the carrying amount
of the sold warehouse receipts shall be recorded as investment income. Furthermore if the
enterprise holds unsold standard warehouse receipts at the end of a reporting period these
holdings shall be presented as "other current assets."
In accordance with the requirements of the Notice on Strictly Implementing Enterprise
Accounting Standards and Effectively Conducting Enterprise Annual Reporting for 2025
(Caikuai [2025] No. 33) if an enterprise adjusts its accounting treatment methods as a
result of implementing the aforementioned regulations regarding standard warehouse
receipts it shall adjust the information for comparable periods presented in its financial
statements. This policy has no impact on the Company.
2. Change of accounting estimate during the reporting period
There is no significant changes in accounting estimates during the reporting period.
4. Taxes
(1) Major type of taxes and corresponding tax rates
Tax Taxation Method Tax Rate
The balance of output VAT calculated
based on product sales and taxable
Value-added Tax (VAT) services revenue in accordance with the 6% 9% 13%
tax laws after subtracting the deductible
input VAT of the period
Based on VAT and business tax actually
City maintenance and construction tax 5% 7%
paid
See the table below
Enterprise income tax Based on taxable income
for details
Notes to taxpayers with different corporate income tax rates:
Name of the taxpayers Income tax rate (%)
Bengang Steel Plates Co. Ltd 15
181Bengang Steel Plates Co. Ltd. Annual Report 2025
Name of the taxpayers Income tax rate (%)
Shanghai Bengang Metallurgy Science and Technology Co. Ltd. 25
Benxi Bengang Steel Sales Co. Ltd. 25
Bengang Posco Cold-rolled Sheet Co. Ltd. 15
Tianjin Bengang Steel & Iron Trading Co. Ltd. 25
Green Gold (Benxi) Renewable Resources Co. Ltd. 25
Yantai Bengang Steel & Iron Sales Co. Ltd. 25
Guangzhou Bengang Steel & Iron Trading Co. Ltd. 25
Dalian Benruitong Automobile Material Technology Co. Ltd. 25
Shenyang Bengang Metallurgical Science and Technology Co. Ltd. 25
North Hengda Logistics Co. Ltd 25
(2) Tax Preference
1. The company has obtained the high-tech enterprise certificate certificate number:
GR202421001555; valid from November 27 2024 to November 27 2027. The company
pays corporate income tax at a reduced rate of 15%.
2. Benxi Posco Cold-Rolled Sheet Co. Ltd. the subsidiary of the Company has obtained
the High-tech Enterprise Certificate certificate number: GR202321001624; valid from
December 20 2023 to December 20 2026. Benxi Steel Posco Cold-Rolled Sheet Co. Ltd.pays corporate income tax at a reduced tax rate of 15%.
3. On December 30 2021 the Ministry of Finance and the State Administration of Taxation
issued the "Announcement on Improving the Value-Added Tax Policy for Comprehensive
Utilization of Resources" (Announcement No. 40 of the Ministry of Finance and the State
Administration of Taxation in 2021). The announcement will take effect on March 1 2022.The original "Notice of the Ministry of Finance and the State Administration of Taxation on
Issuing the "Catalogue of Value-Added Tax Preferential Policies for Comprehensive
Utilization of Resources Products and Services" (Finance and Taxation [2015] No. 78) will
be abolished at the same time except for "technical standards and related conditions". The
electricity and heat produced and sold by the Energy Development Branch of Benxi Iron
and Steel Co. Ltd. a branch of the Company are items listed in the "Catalogue of
Value-Added Tax Preferential Terms for Comprehensive Resource Utilization Products and
Services" and enjoy the value-added tax refund policy.
4. On September 3 2023 the Ministry of Finance and the State Administration of Taxation
issued the "Announcement on the VAT Surcharge Deduction Policy for Advanced
Manufacturing Enterprises" (Announcement No. 43 of the Ministry of Finance and the
182Bengang Steel Plates Co. Ltd. Annual Report 2025
State Administration of Taxation in 2023). From January 1 2023 to December 31 2027
the announcement allows advanced manufacturing enterprises to deduct the payable VAT
by adding 5% to the current deductible input tax. Benxi Posco Cold Rolled Sheet Co. Ltd.a subsidiary of our company belongs to the advanced manufacturing industry and enjoys
the VAT surplus deduction policy.
183Bengang Steel Plates Co. Ltd. Annual Report 2025
5. Notes to the consolidated financial statements
(1) Cash at bank and on hand
Items 2025/12/31 2024/12/31
Cash on hand
Cash at bank 92723863.54 363006448.43
Other monetary funds 839920368.84 863683251.57
Funds placed in a finance company account 194746442.77 1227198770.48
Total 1127390675.15 2453888470.48
Including：Total amount deposited abroad
Funds deposited overseas with
restrictions on repatriation
Notes: As at 31 December 2025 bank acceptance deposit of RMB 839920368.84was not recognized as
cash and cash equivalents in the cash flow statement.
(2) Notes receivable
1. Notes receivable disclosed by category
Items 2025/12/31 2024/12/31
Bank acceptance bill 236004720.54 241529481.42
Commercial acceptance bill 163755056.29 365750000.00
Total 399759776.83 607279481.42
184Bengang Steel Plates Co. Ltd. Annual Report 2025
2. Notes receivable disclosed by bad debt accrual method
2025/12/312024/12/31
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
399759776.83100.00399759776.83607279481.42100.00607279481.42
portfolio of credit
risk characteristics
Total 399759776.83 100.00 399759776.83 607279481.42 100.00 607279481.42
185Bengang Steel Plates Co. Ltd. Annual Report 2025
Provision for bad debts based on portfolio of credit risk characteristics
Portfolio items:
2025/12/31
Items
Notes receivable Provision for bad debts Bad debts ratio (%)
Commercial acceptance bill 163755056.29
Bank acceptance bill 236004720.54
Total 399759776.83
3. The pledged acceptance bill at the year-end
Items Notes receivable pledged at the end of period
Bank acceptance bill 6182721.01
Total 6182721.01
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 3255327628.00 226619630.11
Commercial acceptance bill 1326790375.79
Total 4582118003.79 226619630.11
(3) Accounts receivable
1. Accounts receivable disclosed by aging
Items 2025/12/31 2024/12/31
Within 1 year (inclusive) 1149629532.02 478210867.53
1-2 years (inclusive) 42575692.54 5786445.58
2-3 years (inclusive) 2911370.99 28559402.34
3-4 years (inclusive) 27852241.32 557413.41
4-5 years (inclusive) 556497.21 5592931.88
over 5 years 88417222.29 379435859.17
Subtotal 1311942556.37 898142919.91
186Bengang Steel Plates Co. Ltd. Annual Report 2025
Items 2025/12/31 2024/12/31
Less: Provision for bad debts 133162099.60 396658838.18
Total 1178780456.77 501484081.73
187Bengang Steel Plates Co. Ltd. Annual Report 2025
2. Accounts receivable disclosed by the bad debt accrual method
2025/12/312024/12/31
Gross carrying amount Provision for bad debts Gross carrying amount Provision for bad debts
Bad
Items
Percentage debts Book value Percentage Percentage Book value
Amount Amount Amount Amount
(%) ratio (%) (%)
(%)
Tested for
impairment 48196244.68 3.67 48196244.68 100.00 334963124.35 37.30 334963124.35 100.00
individually
Tested for
impairment 1263746311.69 96.33 84965854.92 6.72 1178780456.77 563179795.56 62.70 61695713.83 10.95 501484081.73
by portfolio
Including:
Aging 1263746311.69 84965854.92 1178780456.77 563179795.56 61695713.83 501484081.73
portfolio
Total 1311942556.37 100.00 133162099.60 1178780456.77 898142919.91 100.00 396658838.18 501484081.73
188Bengang Steel Plates Co. Ltd. Annual Report 2025
Significant accounts receivables tested for impairment individually:
2025/12/312024/12/31
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 286766879.67 286766879.67
Holdings Co. Ltd.Total 48196244.68 48196244.68 334963124.35 334963124.35
Provision for bad debts based on portfolio of credit risk characteristics
Provision for bad debts by portfolio: Aging analysis
2025/12/31
Items
Account Receivable Provision for bad debts Bad debt ratio（%）
Within 1 year
1149629532.0211496295.331.00
(inclusive)
1-2 years (inclusive) 42575692.54 4257569.25 10.00
2-3 years (inclusive) 2911370.99 582274.20 20.00
3-4 years (inclusive) 27852241.32 27852241.32 100.00
4-5 years (inclusive) 556497.21 556497.21 100.00
over 5 years 40220977.61 40220977.61 100.00
Total 1263746311.69 84965854.92
3. The provision for bad debts accrued reversed or recovered in the current period
Changes during the current period
Items 2024/12/31 Reversed or Write-off or Other 2025/12/31
Accrued
recovered Write-back changes
Provision
for bad 396658838.18 32997999.07 21641769.22 274852968.43 133162099.60
debts
189Bengang Steel Plates Co. Ltd. Annual Report 2025
Changes during the current period
Items 2024/12/31 Reversed or Write-off or Other 2025/12/31
Accrued
recovered Write-back changes
Total 396658838.18 32997999.07 21641769.22 274852968.43 133162099.60
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 21641769.22 Repayment Bank deposit
agreements
Holdings Co. Ltd.Total 21641769.22
4. Accounts receivable has been written off this year.
Item Write-off amount
Actual write-off of accounts receivable 274852968.43
Details regarding the write-off of significant accounts receivable:
Arising from
Write-off
Write-off Related-Party
Company Nature Reason Procedures
amount Transactions
Performed
or not
The
restructuring
agreement
Legal
Brilliance has been
Receivables Opinion and
Automotive executed
from Products 265125110.45 Minutes of No
Group Holdings and
and Services Office
Co. Ltd. liquidation
Meeting
repayments
have been
completed.
190Bengang Steel Plates Co. Ltd. Annual Report 2025
5. Top five debtors and contract assets at the end of the period
Accounts Contract
Percentag Provision for
Company receivable as at assets at Total
e(%) bad debts
2025/12/312025/12/31
Angang Group
International
Economic & 663734937.01 663734937.01 50.59 6637349.37
Trade Co. Ltd.Benxi Branch
China
Construction
82637989.0882637989.086.308263798.91
Sixth Engineering
Bureau Co. Ltd.Taicang CIMC
Container
60592424.4560592424.454.62605924.24
Manufacture Co.Ltd.Liaoning
Northern Coal
53085518.7053085518.704.054246806.95
Chemical (Group)
Co. Ltd.Benxi Nanfen
Xinhe
Metallurgical 48196244.68 48196244.68 3.67 48196244.68
Refractories Co.Ltd.Total 908247113.92 908247113.92 69.23 67950124.15
191Bengang Steel Plates Co. Ltd. Annual Report 2025
(4) Accounts receivable financing
1. Accounts receivable financing by category
Items 2025/12/31 2024/12/31
Notes Receivable 331321177.27 64399942.70
Total 331321177.27 64399942.70
192Bengang Steel Plates Co. Ltd. Annual Report 2025
2. Changes in Accounts Receivable Financing and Fair Value During the Period
Accumulated loss allowances
Increase during the Termination during the
Item 2024/12/31 Other changes 2025/12/31 recognized in other
current period current period
comprehensive income
Notes Receivable 64399942.70 12537773155.70 12270851921.13 331321177.27
Total 64399942.70 12537773155.70 12270851921.13 331321177.27
3. Accounts Receivable Financing Pledged by the Company at Period-End
Item Pledged amount as at the period-end
Notes Receivable 120290859.64
Total 120290859.64
193Bengang Steel Plates Co. Ltd. Annual Report 2025
(5) Prepayments
1. Prepayments disclosed by aging
2025/12/312024/12/31
Aging Percentage Percentage
Amount Amount
(%)(%)
Within 1 year
304163117.7196.61370426337.8394.53
(inclusive)
1-2 years (inclusive) 6869069.81 2.18 8643434.04 2.21
2-3 years (inclusive) 3737486.36 1.19 10372837.63 2.65
Over 3 years 56220.18 0.02 2380526.37 0.61
Total 314825894.06 100.00 391823135.87 100.00
Notes: There were no outstanding prepayments over 1 year.
2. Top five prepaid companies at the end of the period
Name of the company 2025/12/31 Percentage (%)
Shanxi Coking Coal Energy Group Co. Ltd. 46687665.87 14.83
Angang Group International Economic & Trade Co. 44117532.53 14.01
Ltd. Benxi Branch
Shanxi Coking Coal Group Coal & Coke Sales Co. 36858044.46 11.71
Ltd.Angang Group International Economic & Trading 35372892.55 11.24
Co. Ltd.Shanxi Coking Coal Group Co. Ltd. 30356971.68 9.64
Total 193393107.09 61.43
(6) Other receivables
Items 2025/12/31 2024/12/31
Interest receivables
Dividend receivables
Other receivables 4034061.03 149015138.26
194Bengang Steel Plates Co. Ltd. Annual Report 2025
Items 2025/12/31 2024/12/31
Total 4034061.03 149015138.26
1. Other receivables
(1) Other receivables disclosed by aging
Items 2025/12/31 2024/12/31
Within 1 year (inclusive) 1219878.37 58452918.98
1-2 years (inclusive) 1320621.74 91693078.45
2-3 years (inclusive) 4483668.45 13520953.62
3-4 years (inclusive) 12609103.20 3962574.01
4-5 years (inclusive) 3237069.03 842882.51
over 5 years 52360468.13 52141851.60
Subtotal 75230808.92 220614259.17
Less: Provision for bad debts 71196747.89 71599120.91
Total 4034061.03 149015138.26
195Bengang Steel Plates Co. Ltd. Annual Report 2025
(2) Disclosed by bad debt accrual method
2025/12/312024/12/31
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Items
Percentage Bad debts Book value Percentage Bad debts Book value
Amount Amount Amount Amount
(%) ratio (%) (%) ratio (%)
Provision for bad
18192317.0024.1818192317.00100.0018192317.008.2518192317.00100.00
debts individually
Provision for bad
debts based on 57038491.92 75.82 53004430.89 92.93 4034061.03 202421942.17 91.75 53406803.91 26.38 149015138.26
portfolio
Include: Aging
56747273.8075.4353004430.8993.403742842.91202194971.9791.6553406803.9126.41148788168.06
portfolio
Risk-free
291218.120.39291218.12226970.200.10226970.20
portfolio
Total 75230808.92 100.00 71196747.89 4034061.03 220614259.17 100.00 71599120.91 149015138.26
196Bengang Steel Plates Co. Ltd. Annual Report 2025
Significant other receivables tested for impairment individually:
2025/12/312024/12/31
Bad
Company Carrying Provision for debts Carrying Provision for
Reason
amount bad debts ratio amount bad debts
(%)
Benxi Iron
and Steel
(Group) No.
3 12504978.59 12504978.59 100.00 Discontinued 12504978.59 12504978.59
Architectural
Engineering
Co. Ltd.Total 12504978.59 12504978.59 12504978.59 12504978.59
Provision for bad debt by portfolio of credit risk characteristics:
Portfolio accrual item: Aging portfolio
2025/12/31
Items
Amount Provision for bad debts Percentage（%）
Within 1 year
928660.259286.601.00
(inclusive)
1-2 year (inclusive) 1320621.74 132062.17 10.00
2-3 year (inclusive) 2043637.11 408727.42 20.00
3-4 year (inclusive) 12609103.20 12609103.20 100.00
4-5 year (inclusive) 3237069.03 3237069.03 100.00
Over 5 years 36608182.47 36608182.47 100.00
Total 56747273.80 53004430.89
197Bengang Steel Plates Co. Ltd. Annual Report 2025
(3) Provision for Bad Debts
Stage one Stage two Stage three
Lifetime expected Lifetime expected
Expected Credit
Provision for bad debts credit losses (credit credit losses (credit Total
Losses for the Next 12
impairment has not impairment has
Months
occurred) already occurred)
Beginning balance 582286.02 11629495.43 59387339.46 71599120.91
Beginning balance during
current period
--Transfer to the second stage -66031.09 66031.09
--Transfer to the third stage -6304551.60 6304551.60
--Write-back to the second
stage
--Write-back to the first stage
Accruals for the current
-506968.33-4850185.3313655252.408298098.74
period
Reversal during the current
period
Write-back of the current
period
Write-off during the current
-8700471.76-8700471.76
period
Other changes
Ending balance 9286.60 540789.59 70646671.70 71196747.89
(4) Details of Bad Debt Provisions Accrued Reversed or Recovered During the Current
Period
Changes during the current period
Reversal
Items 2024/12/31 Write-back 2025/12/31
Accrual or Others
or write-off
recovered
198Bengang Steel Plates Co. Ltd. Annual Report 2025
Changes during the current period
Reversal
Items 2024/12/31 Write-back 2025/12/31
Accrual or Others
or write-off
recovered
Bad debt
provision
71599120.918298098.748700471.7671196747.89
for other
receivables
Total 71599120.91 8298098.74 8700471.76 71196747.89
(5) Details of Other Receivables Actually Written Off During the Current Period
Item Write-off amount
Actual write-off of other accounts receivable 8700471.76
(6) Other receivables disclosed by nature
Nature 2025/12/31 2024/12/31
Compensation for the
87177700.00
“Living Show Belt” project
Current Account 71623926.65 130478649.66
Others 3606882.27 2957909.51
Total 75230808.92 220614259.17
(7) Top five other receivables at the end of the period
Percentage
Provision for
Nature or of total other
Company Amount Aging bad debts at
content receivables
2025/12/31
(%)
Benxi Iron and
Steel (Group)
No. 3 Current over 5
12504978.5916.6212504978.59
Architectural Account years
Engineering
Co. Ltd.Benxi Iron &
Steel (Group)
Current over 5
No. 1 3247307.07 4.32 3247307.07
Account years
Construction
Engineering
199Bengang Steel Plates Co. Ltd. Annual Report 2025
Percentage
Provision for
Nature or of total other
Company Amount Aging bad debts at
content receivables
2025/12/31
(%)
Co. Ltd.Benxi Iron &
Current 1-2 years
Steel (Group) 2674500.00 3.56 413000.00
Account 2-3 years
Co. Ltd.Liaoning 2261360.00 3.01 2261360.00
Huawei Coal Current over 5
Preparation Co. Account years
Ltd.
1916960.24 3-4 years 2.55 1916960.24
Benxi Ganglian Current 4-5 years
Slag Co. Ltd. Account over 5
years
Total 22605105.90 30.05 20343605.90
200Bengang Steel Plates Co. Ltd. Annual Report 2025
(7) Inventories
1. Inventories disclosed by category
2025/12/312024/12/31
Inventory
Inventory
impairment/
Items impairment/Impairment
Gross carrying amount Book value Gross carrying amount Impairment of Book value
of contract fulfillment
contract
costs
fulfillment costs
Raw material 3171263464.65 256207419.31 2915056045.34 4300063154.21 247221306.73 4052841847.48
Work in progress 2473710024.54 64533859.33 2409176165.21 2001147780.74 26685410.19 1974462370.55
Finished goods 1074768310.11 29805634.54 1044962675.57 1337346627.43 31566151.19 1305780476.24
Total 6719741799.30 350546913.18 6369194886.12 7638557562.38 305472868.11 7333084694.27
2. Impairment of inventory and contract fulfillment cost
Increase Decrease
Category 2024/12/31 2025/12/31
Provision Others Write-back or write-off Others
Raw material 247221306.73 194505777.63 185519665.05 256207419.31
Work in progress 26685410.19 74883452.10 37035002.96 64533859.33
201Bengang Steel Plates Co. Ltd. Annual Report 2025
Increase Decrease
Category 2024/12/31 2025/12/31
Provision Others Write-back or write-off Others
Finished goods 31566151.19 17499979.16 19260495.81 29805634.54
Total 305472868.11 286889208.89 241815163.82 350546913.18
202Bengang Steel Plates Co. Ltd. Annual Report 2025
(8) Other current assets
Items 2025/12/31 2024/12/31
VAT input tax 431454249.59 401503924.78
Others 18817113.34 35577335.88
Total 450271362.93 437081260.66
203Bengang Steel Plates Co. Ltd. Annual Report 2025
(9) Long-term equity investment
1. Long-term equity investment
Increase/decrease
Income or
Impairment loss on Impairment
2024/12/31 Reductio Other Declaration 2025/12/31
provision Addition investment Other Provision provision
Investees (Book n of Comprehensive of Cash (Book
as of of recognized Equity of Others as of
value) Investme Income Dividends value)
2024/12/31 Investment under the Changes Impairment 2025/12/31
nt Adjustment or Profit
equity
method
2．Associated
Enterprise
Shenyang
Xiangyu New
Material 45413221.72 -2143337.68 43269884.04
Technology Co.Ltd.Subtotal
45413221.72-2143337.6843269884.04
Total
45413221.72-2143337.6843269884.04
204Bengang Steel Plates Co. Ltd. Annual Report 2025
(10) Other equity instrument investment
1. The information of other equity instrument investment
Changes During the Current Period
Dividend Accumulated Accumulated
Gains Losses
income gains losses
recognized in recognized in
Addition Reduction recognized recognized in recognized in Reasons for
Item 2024/12/31 other other 2025/12/31
of of Others during the other other Designation
comprehensive comprehensive
Investment Investment current comprehensive comprehensive
income during income during
period income income
the period the period
Suzhou
Longben
Metal 3940544.25 34699.62 3975243.87 86263.87
Materials
Co. Ltd.Northeast
Special
Steel 929485710.38 -43040122.48 886445587.90 151290261.10
Group
Co. Ltd.Sinosteel 14414693.00
205Bengang Steel Plates Co. Ltd. Annual Report 2025
Changes During the Current Period
Dividend Accumulated Accumulated
Gains Losses
income gains losses
recognized in recognized in
Addition Reduction recognized recognized in recognized in Reasons for
Item 2024/12/31 other other 2025/12/31
of of Others during the other other Designation
comprehensive comprehensive
Investment Investment current comprehensive comprehensive
income during income during
period income income
the period the period
Shanghai
Steel
Processing
Co. Ltd.Total 933426254.63 34699.62 -43040122.48 890420831.77 86263.87 165704954.10
206Bengang Steel Plates Co. Ltd. Annual Report 2025
(11) Fixed assets
1. Fixed assets and Disposal of fixed assets
Items 2025/12/31 2024/12/31
Fixed assets 28412673622.89 26426320453.57
Disposal of fixed assets
Total 28412673622.89 26426320453.57
207Bengang Steel Plates Co. Ltd. Annual Report 2025
2. Details of fixed assets
Transportation
Items Buildings Machinery Office equipment Total
equipment
1．Gross carrying amount
（1）31 December 2024 14262023176.62 52705897283.61 400985732.35 242916091.60 67611822284.18
（2）Increase in current period 345083211.93 3371864157.56 2675114.60 11543279.05 3731165763.14
—Including: Purchase 1958197.73 475557.53 2433755.26
—Transferred from
345083211.933368888047.222199557.0711543279.053727714095.27
construction in progress
—Increase in Business
Combinations
—Others 1017912.61 1017912.61
（3）Decrease in current period 95105426.10 349657275.84 14051231.60 219077.77 459033011.31
—Including: Disposal or
95105426.10349657275.8414051231.60219077.77459033011.31
scrapped
（4）31 December 2025 14512000962.45 55728104165.33 389609615.35 254240292.88 70883955036.01
2．Total accumulated depreciation
（1）31 December 2024 6843827644.40 33772852695.68 320082643.21 137437495.66 41074200478.95
（2）Increase in current period 243268845.62 1391369035.62 11026034.11 35084066.74 1680747982.09
208Bengang Steel Plates Co. Ltd. Annual Report 2025
Transportation
Items Buildings Machinery Office equipment Total
equipment
—Including: Provision 243268845.62 1391369035.62 11026034.11 35084066.74 1680747982.09
（3）Decrease in current period 80046503.68 314116594.20 13430317.73 217876.03 407811291.64
—Including: Disposal or
80046503.68314116594.2013430317.73217876.03407811291.64
scrapped
（4）31 December 2025 7007049986.34 34850105137.10 317678359.59 172303686.37 42347137169.40
3．Total impairment
（1）31 December 2024 83249691.92 28051659.74 111301351.66
（2）Increase in current period 17044069.90 17044069.90
—Including: Provision 17044069.90 17044069.90
（3）Decrease in current period 833674.57 3367503.27 4201177.84
—Including: Disposal or
833674.573367503.274201177.84
scrapped
（4）31 December 2025 82416017.35 41728226.37 124144243.72
4．Total net book value of fixed
assets
（1）31 December 2025 7422534958.76 20836270801.86 71931255.76 81936606.51 28412673622.89
（2）31 December 2024 7334945840.30 18904992928.19 80903089.14 105478595.94 26426320453.57
209Bengang Steel Plates Co. Ltd. Annual Report 2025
3. Fixed assets idled temporarily
Gross carrying Accumulated
Items Impairment Book value Note
amount depreciation
Buildings 112751517.87 68416882.13 41943853.74 2390782.00
Machinery 2923801.21 2348004.03 74824.18 500973.00
Transportation
58652.7856893.201759.58
equipment
Others 110671.80 109829.55 842.25
Total 115844643.66 70931608.91 42019520.17 2893514.58
4. Fixed assets leased out by operating lease
Items Book value
Buildings 84583912.78
Machinery 210973.38
5. Fixed assets without property rights certificates at the end of the period
Items Book value Reason
Buildings 2545489413.29 In process
(12) Construction in progress
1. Construction in progress and Construction materials
2025/12/312024/12/31
Total Total
Items Gross carrying Gross carrying
impair Book value impairm Book value
amount amount
ment ent
Construction in progress 3074712066.38 3074712066.38 3934442501.50 3934442501.50
Project materials
Total 3074712066.38 3074712066.38 3934442501.50 3934442501.50
210Bengang Steel Plates Co. Ltd. Annual Report 2025
2. Details of construction in progress
2025/12/312024/12/31
Items Gross carrying Total Gross carrying Total
amount impairment Book value amount impairment Book value
Cold Rolling
Transformation 483026894.14 483026894.14 492919655.40 492919655.40
Project
Environmental
Protection
Renovation of 158152797.73 158152797.73 160208719.65 160208719.65
Plate Raw
Material Plant
Environmental
Upgrade of the
No. 2 Sintering
Stockyard at the 156323959.75 156323959.75 46697183.08 46697183.08
Sheet Metal
Ironmaking
Plant
Grid Upgrade
Project
Supporting the
Bancai
Nengguan
Center 142364867.84 142364867.84
Supercritical
Power
Generation
Project
Steam Drum to
Electric Drum
Conversion
Project of the 118526373.67 118526373.67 48987269.15 48987269.15
Plate Energy
Management
Center
Renovation of
the dust removal
system in the
No. 6 blast 96061655.94 96061655.94 64377725.64 64377725.64
furnace area of
? ? the Iron and
Steel Plant
Special Steel
Electric Furnace
Capacity 86939629.39 86939629.39 483671390.32 483671390.32
Replacement
Project
Bengang Plate
intelligent 85050424.38 85050424.38 53198819.53 53198819.53
factory Project
Desulphurization
Waste Liquor
Acid Making
Project in Plates 82624177.66 82624177.66 79335324.68 79335324.68
Iron Making
Plant
Retrofit of the
Dust Removal
System in the 68847544.63 68847544.63 46333893.64 46333893.64
New No.1 Blast
Furnace Area at
211Bengang Steel Plates Co. Ltd. Annual Report 2025
2025/12/312024/12/31
Items Gross carrying Total Book value Gross carrying Totalamount impairment amount impairment Book value
the Ironmaking
General Works
Others 1596793741.25 1596793741.25 2458712520.41 2458712520.41
Total 3074712066.38 3074712066.38 3934442501.50 3934442501.50
212Bengang Steel Plates Co. Ltd. Annual Report 2025
3. Changes in important construction projects in the current period
Project
Other cumulativeTransferred to decrease investment Project Accumulated
Including： Interest
Items Budget 2024/12/31 Increase during fixed asset during 2025/12/31 accounted progress amount of
Interest capitalization
capitalization rate in Sources ofcurrent period during current for the
period current (%)
interest amount in current funds
period proportion capitalizationof the current period period (%)
budget (%)
Special Steel
Electric Furnace
Capacity 1732481000.00 483671390.32 7086387.35 403818148.28 86939629.39 89.57 89.57 52044899.29 Fundraising
Replacement
Project
Centralized
Control Project
before Loan from
Ironmaking of 162000000.00 107816471.12 41244457.15 146571536.82 2489391.45 88.51 88.51 5675347.29 5675347.29 4.08 financialinstitute
Plates Iron
Making Plant
Renovation of
the Hot Blast
Furnace and
Heat Exchanger
of the No.7 145000000.00 120538633.05 21837952.00 142376585.05 98.19 98.19 OwnFunds
Blast Furnace in
Plate
Ironmaking
Plant
Cold Rolling Loan from
Transformation 843640000.00 492919655.40 85482604.91 95375366.17 483026894.14 95.65 95.65 52224686.79 12115610.33 4.08 financial
Project institute
Centralized
Control Project
before Own
Ironmaking of 80258847.34 80258847.34 15088525.25 95347372.59 79.64 79.64 Funds
Plates Iron
Making Plant
213Bengang Steel Plates Co. Ltd. Annual Report 2025
Project
cumulative
Transferred to Otherdecrease investment
Including： Interest
Increase during fixed asset accounted Project
Accumulated
Items Budget 2024/12/31 during 2025/12/31 progress amount of
Interest capitalization Sources of
current period during current for the interest capitalization rate in
period current proportion (%) capitalization amount in current
funds
period of the current period period (%)
budget (%)
Ultra-low
emission
transformation
of the dust
removal system 99660000.00 68740566.29 21450808.39 90191374.68 90.5 90.5 OwnFunds
in the original
No.3 operation
areas of the Iron
and Steel Plant
Renovation of
cooling
equipment of
No.7 blast 90800000.00 65430926.20 23876974.79 89307900.99 98.36 98.36 OwnFunds
furnace in Plate
Ironmaking
Plant
Environmental
Protection
Renovation in Loan from
No. 2 Coal 310000000.00 119656230.22 5489481.00 83574769.65 41570941.57 92.36 92.36 9092899.25 financial
Storage Field of institute
Plates Raw
Material Plant
Sheet Metal
Ironmaking
Complex: Dust
Removal 99200000.00 81580.00 78808585.50 78890165.50 79.53 79.53 OwnFunds
Upgrade for the
265 Sintering
System
214Bengang Steel Plates Co. Ltd. Annual Report 2025
Project
Other cumulativeTransferred to investment Including： Interest
Increase during fixed asset decrease accounted Project
Accumulated Interest capitalization
Items Budget 2024/12/31 amount ofcurrent period during current during 2025/12/31 for the progress interest capitalization rate in
Sources of
period current proportion (%) capitalization amount in current
funds
period of the current period period (%)
budget (%)
Capacity
Replacement
Project of No. 5
Blast Furnace of
Bensteel
Ironmaking
Plant
(Energy-saving Loan from
and 1106230000.00 55645429.58 16367092.34 72012521.92 87.89 87.89 31410224.04 financialinstitute
Environmental
Protection
Renovation of
No. 5 Blast
Furnace of
Ironmaking
Plant)
Environmental
Treatment of
the First and
Second Mixing
Systems for 61030000.00 37822726.20 15248233.80 53070960.00 86.96 86.96 OwnFunds
Sinter Machine
at Plate
Ironmaking
General Works
Fully Enclosed
Belt Conveyor
Gallery Project
at Benxi Steel 64900000.00 34238770.60 18087566.60 52326337.20 80.63 80.63 OwnFunds
Plate
Ironmaking
General Works
215Bengang Steel Plates Co. Ltd. Annual Report 2025
Project
Transferred to Other
cumulative Including： Interest
Increase during fixed asset decrease
investment Accumulated
Items Budget 2024/12/31 during 2025/12/31 accounted
Project amount of Interest capitalization
current period during current for the progress interest capitalization rate in
Sources of
period current proportion (%) capitalization amount in current
funds
period of the current period period (%)
budget (%)
Plate Hot
Rolling Mill
2300 Line Loan from
Reheating 80000000.00 15500355.74 35711627.07 51211982.81 73.5 73.5 625582.07 625582.07 4.08 financialinstitute
Furnace
Overhaul
Total 1682321582.06 385780296.15 1454075021.66 614026856.55 151073638.73 18416539.69
216Bengang Steel Plates Co. Ltd. Annual Report 2025
(13) Right of use assets
1. Right of use assets
Items Land Buildings Machinery Total
1. Gross carrying
amount
(1) 31 December
1132274415.17368465367.56444230189.481944969972.21
2024
(2) Increase in current
1015148373.631015148373.63
period
—Addition 1015148373.63 1015148373.63
(3) Decrease in
current period
— Transfer to
Fixed Assets
(4) 31 December
1132274415.17368465367.561459378563.112960118345.84
2025
2．Total accumulated
depreciation
(1) 31 December
159616944.9281881192.9617546124.19259044262.07
2024
(2) Increase in current
39904236.2420470298.2833544155.3593918689.87
period
—Provision 39904236.24 20470298.28 33544155.35 93918689.87
(3) Decrease in
current period
— Transfer to
Fixed Assets
(4) 31 December
199521181.16102351491.2451090279.54352962951.94
2025
3．Total impairment
(1) 31 December
2024
(2) Increase in current
217Bengang Steel Plates Co. Ltd. Annual Report 2025
Items Land Buildings Machinery Total
period
(3) Decrease in
current period
— Transfer to
Fixed Assets
(4) 31 December
2025
4．Total net book
value
(1) 31 December
932753234.01266113876.321408288283.572607155393.90
2025
(2) 31 December
972657470.25286584174.60426684065.291685925710.14
2024
(14) Intangible assets
1. Details of intangible assets
Items Software Land use right Total
1．Total of original value
（1）31 December 2024 4439653.03 489429922.52 493869575.55
（2）Increase
—Purchase
—Internal R&D
（3）Decrease
—Disposal
（4）31 December 2025 4439653.03 489429922.52 493869575.55
2．Total Accumulated Amortization
（1）31 December 2024 686823.46 98402683.41 99089506.87
（2）Increase 1164089.21 9956966.70 11121055.91
—Provision 1164089.21 9956966.70 11121055.91
（3）Decrease
—Disposal
218Bengang Steel Plates Co. Ltd. Annual Report 2025
Items Software Land use right Total
— Portion that has become invalid
and been derecognized
（4）31 December 2025 1850912.67 108359650.11 110210562.78
3．Total of Impairment
（1）31 December 2024
（2）Increase
—Provision
（3）Decrease
—Disposal
— Portion that has become invalid
and been derecognized
（4）31 December 2025
4．Total of Net book value
（1）31 December 2025 2588740.36 381070272.41 383659012.77
（2）31 December 2024 3752829.57 391027239.11 394780068.68
2. Land use right without property rights certificates at the end of the period
Items Book value Reason
Land use right 35439263.10 In process
Total 35439263.10
(15) Deferred tax asset and deferred tax liability
1. Deferred tax assets before taking into consideration of the balance offsetting
2025/12/312024/12/31
Deductible Deductible
Items Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
Impairment 678979736.04 102311312.63 598249997.63 90011580.45
Changes in fair value
165704954.0724855743.11122664831.6218399724.74
of other financial
219Bengang Steel Plates Co. Ltd. Annual Report 2025
2025/12/312024/12/31
Deductible Deductible
Items Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
assets recognized in
other comprehensive
income
Tax-Accounting
Differences under 2587520333.13 388128049.97 1752154297.33 262823144.60
Lease Standards
Total 3432205023.24 515295105.71 2473069126.58 371234449.79
2. Deferred tax liabilities before taking into consideration of the balance offsetting
2025/12/312024/12/31
Taxable Taxable
Items Deferred tax Deferred tax
temporary temporary
liabilities liabilities
differences differences
Changes in fair value
of other financial
assets recognized in 65857.87 9878.68 31158.29 4673.74
other comprehensive
income
Tax-Accounting
Differences under 2607155393.87 391073309.08 1685925710.14 252888856.52
Lease Standards
Total 2607221251.74 391083187.76 1685956868.43 252893530.26
3. Deferred income tax assets or liabilities presented at net amounts after offsetting
Item 2025/12/31 2024/12/31
220Bengang Steel Plates Co. Ltd. Annual Report 2025
Deferred Income
Offset Amount of Offset Amount of Deferred Income
Tax Asset or
Deferred Income Deferred Income Tax Asset or
Liability Balance
Tax Assets and Tax Assets and Liability Balance
(Net of
Liabilities Liabilities (Net of Offsetting)
Offsetting)
Deferred tax 371234449.79
391083187.76124211917.95
assets
Deferred tax 252893530.26
391083187.76
liabilities
4. Unrecognized deferred tax assets
Items 2025/12/31 2024/12/31
Deductible temporary differences 70268.35 286782181.23
Deductible losses 13500278662.54 9483185444.74
Total 13500348930.89 9769967625.97
5. The deductible loss of unrecognized deferred tax assets due in the following period
Year 31 December 2025 31 December 2024 Notes
Year 2025 8257832.98
Year 2026 2512631.86 6799314.77
Year 2027 8117351.82 8117351.82
Year 2028
Year 2029
Year 2030
Year 2031
Year 2032 1911715647.99 1911715647.99
Year 2033 2367541315.76 2367541315.76
Year 2034 5125613839.53 5180753981.42
Year 2035 4084777875.58
Total 13500278662.54 9483185444.74
(16) Other non-current assets
221Bengang Steel Plates Co. Ltd. Annual Report 2025
2025/12/312024/12/31
Gross
Items Gross carrying
carrying Impairment Book value Impairment Book value
amount
amount
Prepayment
for
construction 54632516.72 54632516.72 86297275.16 86297275.16
and
equipment
Total 54632516.72 54632516.72 86297275.16 86297275.16
222Bengang Steel Plates Co. Ltd. Annual Report 2025
(17) Assets with restricted ownership or use rights
2025/12/312024/12/31
Items Type of Type of
Carrying amount Book value Status Carrying amount Book value Status
restriction restriction
Margin for Margin for
Margin for Notes Margin for Notes
Notes Notes
Cash at bank and receivable receivable
839920368.84 839920368.84 receivable 863683251.57 863683251.57 receivable
on hand Margin for letter Margin for letter
Margin for letter Margin for letter
of credit of credit
of credit of credit
Notes receivable 6182721.01 6182721.01 Pledged Pledged 165968800.17 165968800.17 Pledged Pledged
Accounts
receivable 120290859.64 120290859.64 Pledged Pledged
financing
Total 966393949.49 966393949.49 1029652051.74 1029652051.74
223Bengang Steel Plates Co. Ltd. Annual Report 2025
(18) Short-term loans
1. Classification of short-term loans
Items 2025/12/31 2024/12/31
Credit loans 200000000.00 370000000.00
Discounted unexpired bills 133660470.12 1055490.50
Total 333660470.12 371055490.50
(19) Notes payable
Items 2025/12/31 2024/12/31
Bank acceptance bill 10925339515.71 10412029417.45
Commercial acceptance bill 900231371.80 1559477470.97
Letter of credit 1136716755.37 1011196781.44
Total 12962287642.88 12982703669.86
Note: The total amount of overdue but unpaid bills payable at the end of this period was RMB
48559.99 and the reason for the overdue non-payment was that the holder did not submit a
payment application.
(20) Accounts payable
1. Accounts payable
Items 2025/12/31 2024/12/31
Within 1 year (inclusive) 2526036992.36 2680864210.15
1-2 year (inclusive) 99557994.74 61748259.48
2-3 year (inclusive) 25862929.99 8554593.94
Over 3 years 15778495.57 10592375.79
Total 2667236412.66 2761759439.36
2. Significant accounts payable aging over one year or overdue
Items 2025/12/31 Reasons
Benxi Iron & Steel (Group) Information Not yet eligible for
12971075.23
Automation Co. Ltd. settlement
224Bengang Steel Plates Co. Ltd. Annual Report 2025
Items 2025/12/31 Reasons
Total 12971075.23
(21) Prepayments
Items 2025/12/31 2024/12/31
Within 1 year (inclusive) 49541.35 611.60
1-2 year (inclusive) 58715.61
2-3 year (inclusive)
Over 3 years
Total 49541.35 59327.21
(22) Contract liabilities
1. Details of contract liabilities
Items 2025/12/31 2024/12/31
Payment received in advance and labor
2736697947.252894761202.08
costs
Others 13837223.65
Total 2736697947.25 2908598425.73
(23) Employee benefits payable
1. Employee benefits payable
Items 2024/12/31 Increase Decrease 2025/12/31
Short-term employee 1773068.35 1705470986.36 1704657171.42 2586883.29
benefits
Post-employment 230401591.11 230401591.11
benefits - defined
contribution plans
Termination benefits 117157117.98 117157117.98
Other benefits due
within one year
Total 1773068.35 2053029695.45 2052215880.51 2586883.29
225Bengang Steel Plates Co. Ltd. Annual Report 2025
2. Short-term employee benefits
Items 2024/12/31 Increase Decrease 2025/12/31
(1) Salary bonus
1238926668.601238926668.60
allowance and subsidy
(2) Employee welfare 158989619.31 158989619.31
(3) Social Insurance 116652644.33 116652644.33
Including: Medical
insurance and maternity 97024776.37 97024776.37
insurance
Work injury
19627867.9619627867.96
insurance
Others
(4) Housing fund 140031949.00 140031949.00
(5) Union funds and staff
1773068.3531034832.3230221017.382586883.29
education fee
(6) Short-term
compensated absences
(7) Short-term profit -
sharing scheme
(8) Other short-term
19835272.8019835272.80
benefits
Total 1773068.35 1705470986.36 1704657171.42 2586883.29
3. Defined contribution plans
Items 2024/12/31 Increase Decrease 2025/12/31
Basic pension fund 184768778.80 184768778.80
Unemployment insurance 5774655.52 5774655.52
Annuity 39858156.79 39858156.79
Total 230401591.11 230401591.11
226Bengang Steel Plates Co. Ltd. Annual Report 2025
(24) Current tax liabilities
Items 2025/12/31 2024/12/31
Value-added tax 10075228.91 10272516.44
Resource Tax 1965703.36 750000.00
Corporate income tax 14251204.39 16029179.78
Individual income tax 8351507.38 2157426.95
City maintenance and construction tax 708128.46 540889.49Educational surcharges（including local
6967050.057370656.33Educational surcharges）
House property tax 505806.05 386769.92
Land use right tax 1144608.49 1088809.99
Others 15888049.72 15473848.93
Total 59857286.81 54070097.83
(25) Other payables
Items 2025/12/31 2024/12/31
Interest payables
Dividends payables 45054305.70 99687100.35
Other payables 2730489890.41 2255007099.66
Total 2775544196.11 2354694200.01
1. Dividends payables
Items 2025/12/31 2024/12/31
Bengang Group Co. Ltd. 45054305.70 45054305.70
Pohang Iron and Steel Co. Ltd (POSCO) 54632794.65
Total 45054305.70 99687100.35
2. Other payables
(1) Other payables disclosed by nature
227Bengang Steel Plates Co. Ltd. Annual Report 2025
Items 2025/12/31 2024/12/31
Current Accounts 2344273165.96 1871598040.35
Deposit 559292.00 586292.00
Margin 382448871.66 377422555.34
Others 3208560.79 5400211.97
Total 2730489890.41 2255007099.66
(2) Significant other payables aged over one year or overdue
Items 2025/12/31 Reasons
Hunan MCC Changtian Energy Saving and 21291952.51 The project is still in
Environmental Protection Technology Co. Ltd. progress
7908386.00 The project is still in
Shanghai Baosight Software Co. Ltd.progress
4742787.61 The project is still in
China Third Metallurgical Group Co. Ltd.progress
Total 33943126.12
(26) Non-current liabilities due within one year
Items 2025/12/31 2024/12/31
Long-term loans due within one year 927300000.00 805270731.20
Bond payables due within one year 5665550635.00 106989474.64
Lease liabilities due within one year 348084227.49 118242710.82
Total 6940934862.49 1030502916.66
(27) Other current liabilities
Items 2025/12/31 2024/12/31
Output tax to be transferred 275281765.24 328981058.74
Total 275281765.24 328981058.74
228Bengang Steel Plates Co. Ltd. Annual Report 2025
(28) Long-term loans
Items 2025/12/31 2024/12/31
Pledged loans
Mortgage loan
Guaranteed loans
Credit loans 6941769758.11 3697212193.60
Subtotal 6941769758.11 3697212193.60
Less: Non-current liabilities due within
927300000.00805270731.20
one year
Total 6014469758.11 2891941462.40
Notes: The interest rate of long-term loans is 2.39%-3.67%.
(29) Bonds payable
1. Bonds payable disclosed by category
Items 2025/12/31 2024/12/31
Convertible Bond 5569899459.53
Total 5569899459.53
229Bengang Steel Plates Co. Ltd. Annual Report 2025
2. Changes in Bonds payables (Excluding other financial instruments such as preferred stocks and perpetual bonds classified as financial liabilities)
Share
conversi
Balance at the end Premium and Balance at the end
Coupo Issue Bond Current Interest accrued Repayment in on and Default
Items Face value Issuance amount of the previous discount of the current
n rate date duration issue at face value this period repurcha or not
year amortization period
se this
year
Bengang
29th
Convertible
6800000000.00 June 6 years 6800000000.00 5676888934.17 247774352.50 -45093127.03 213987524.64 32000.00 5665550635.00 No
Bond (Bond
2020
code:127018)
Less: amount
due within one 106989474.64 247774352.50 -45093127.03 213987524.64 32000.00 5665550635.00 No
year
Total 6800000000.00 5569899459.53
3. Description of corporate convertible bond:
230Bengang Steel Plates Co. Ltd. Annual Report 2025
Approved by Shenzhen Stock Exchange "Shen Zheng Shang [2020] No. 656" the Company’s RMB 6.80 billion convertible corporate bonds were listed on
the Shenzhen Stock Exchange on August 4 2020 and the abbreviation is "Bengang Convertible Bonds". The bond code is "127018". The conversion period
of the convertible corporate bonds issued this time is from the first trading day after six months of the issuance of the convertible corporate bonds (July 3
2020) to the maturity date of the convertible corporate bonds that is from January 4 2021 to June 28 2026. The initial conversion price of the convertible
bonds is RMB 5.03 per share. From January 1 2025 to December 31 2025 an aggregate of RMB32000.00 of the convertible bonds were converted into
8096.00 common stock. Among them:
In the first quarter of 2025 the Bengang convertible bonds were reduced by RMB 15000.00 (150 bonds) due to the conversion and the number of shares
converted was 3795.00 shares and the conversion price was RMB3.95 per share;
In the second quarter of 2025 the Bengang convertible bonds were reduced by RMB 1000.00 (10 bonds) due to the conversion and the number of shares
converted was 253.00 shares and the conversion price was RMB3.95 per share;
In the third quarter of 2025 the Bengang convertible bonds were reduced by RMB13000.00 (130 bonds) due to the conversion and the number of shares
converted was 3036.00 shares and the conversion price was RMB3.95 per share;
In the forth quarter of 2025 the Bengang convertible bonds were reduced by RMB 4000.00 (40 bonds) due to the conversion and the number of shares
converted was 1012.00 shares and the conversion price was RMB3.95 per share;
As of December 31 2025 the remaining amount of the face value of the convertible bonds was RMB 5630953100.00 Yuan (56309531.00 bonds).
231Bengang Steel Plates Co. Ltd. Annual Report 2025
(30) Lease liabilities
Items 2025/12/31 2024/12/31
Lease payments 3357181841.40 2539395930.63
Less: Unrealized financing expenses 769661508.27 787241633.30
Reclassified to non-current liabilities
348084227.49118242710.82
within one year
Total 2239436105.64 1633911586.51
(31) Deferred income
Items 2024/12/31 Increase Decrease 2025/12/31 Reason
Government
173919087.4747760050.0063479720.89158199416.58
subsidy
Total 173919087.47 47760050.00 63479720.89 158199416.58
232Bengang Steel Plates Co. Ltd. Annual Report 2025
The details of the government subsidy projects are as follows:
Transfer to Offsetting
Transfer to Other
Related to assets or income 2024/12/31 Increase non-operatin cost or 2025/12/31
other income changes
g income expenses
Related to assets 167930005.80 46333000.00 59001148.00 155261857.80
Related to income 5989081.67 1427050.00 4478572.89 2937558.78
Total 173919087.47 47760050.00 63479720.89 158199416.58
233Bengang Steel Plates Co. Ltd. Annual Report 2025
(32) Share capital
Increase/decrease (+ - )
Issuing Transferred
Items 2024/12/31 Bonus 2025/12/31
of new from Others Subtotal
shares
share reserves
Total
4108228157.008096.008096.004108236253.00
shares
Note: The decrease during the current period resulted from the conversion of 8096.00 shares
of the Company's A-share convertible bonds into the Company's A-share ordinary shares. As
of December 31 2025 the remaining face value balance of the Company's convertible bonds
amounted to RMB 5630953100.00 (comprising 56309531.00 bonds). For further details
please refer to Note 5. (29) Bonds payable.
234Bengang Steel Plates Co. Ltd. Annual Report 2025
(33) Other equity instruments
Changes in financial instruments such as preferred stocks and perpetual bonds issued at the end of the period
2024/12/31 Increase Decrease 2025/12/31
Items
Number Book value Number Book value Number Book value Number Book value
Convertible corporate
56309851.00947850195.03320.006514.2156309531.00947843680.82
bonds
Total 56309851.00 947850195.03 320.00 6514.21 56309531.00 947843680.82
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 RMB32000.00 (320 bonds) and the remaining balance of the face value of the convertible bonds as of December 31 2025 was RMB
5630953100.00Yuan (56309531.00 bonds). For details please refer to Note 5. (29) Bonds payable.
235Bengang Steel Plates Co. Ltd. Annual Report 2025
(34) Capital reserves
Items 2024/12/31 Increase Decrease 2025/12/31
Capital (share)
13109714698.1323670.5313109738368.66
premium
Other capital
115917468.8227300000.00143217468.82
reserves
Including: Changes
in Other Equity of
the Investee
Others 115917468.82 27300000.00 143217468.82
Total 13225632166.95 27323670.53 13252955837.48
Notes:
1. The increase was due to the conversion of A-share convertible bonds issued by the
Company into A-share common stock during the period as described in Note 5 (29)
Bonds payable.
2. The increase in "Other Capital Reserves" during the current period resulted from the
receipt of special funds from Angang Group thereby increasing the entity's state-owned
capital (specifically State-owned Exclusive Capital Reserves).
236Bengang Steel Plates Co. Ltd. Annual Report 2025
(35) Other comprehensive income
Current period
Less: amount
recognized in Income after Income after
Amounts
OCI in the tax tax Less: transfer
Items 2024/12/31 before 2025/12/31
previous period Less: income tax attributable to attributable to to retain
corporate
transfer to PL owners of the non-controllin earnings
income tax
in current Company g interests
period
1．Items cannot be reclassified
-93407196.62-43005422.86-6450813.43-36554609.43-129961806.05
into profit or loss.including: Remeasurements of
the Net Defined Benefit
Liability (Asset)
Changes in fair value of
investments in other equity -43035854.74 -43005422.86 -6450813.43 -36554609.43 -79590464.17
instruments
2．Items can be reclassified into
profit or loss
237Bengang Steel Plates Co. Ltd. Annual Report 2025
Current period
Less: amount
recognized in Income after Income after
Amounts
OCI in the tax tax Less: transfer
Items 2024/12/31 before 2025/12/31
previous period Less: income tax attributable to attributable to to retain
corporate
transfer to PL owners of the non-controllin earnings
income tax
in current Company g interests
period
Total -93407196.62 -43005422.86 -6450813.43 -36554609.43 -129961806.05
238Bengang Steel Plates Co. Ltd. Annual Report 2025
(36) Special Reserves
Items 2024/12/31 Increase Decrease 2025/12/31
Safety production
809649.6564166383.0364094530.45881502.23
cost
Total 809649.65 64166383.03 64094530.45 881502.23
(37) Surplus Reserves
Items 2024/12/31 Increase Decrease 2025/12/31
Statutory surplus
1195116522.371195116522.37
reserves
Total 1195116522.37 1195116522.37
(38) Undistributed Profits
Items Current period Previous period
Before adjustments: undistributed profits at last
-7497011632.90-2414685928.92
year-end
Adjustments of the beginning distributed profits
(increase + / decease -)
After adjustments: undistributed profit at this
-7497011632.90-2414685928.92
year-beginning
Add: undistributed profit belonging to parent
-3942278349.12-5037271398.28
company
Less: Statutory surplus reserves
Discretionary reserves
General risk reserves
Common shares dividend payable 45054305.70
Common shares dividend transferred to paid-in
capital
Ending balance of undistributed profits -11439289982.02 -7497011632.90
239Bengang Steel Plates Co. Ltd. Annual Report 2025
(39) Operating income and operating cost
1. Operating income and operating cost
Current period Previous period
Items
Revenue Cost Revenue Cost
Principal
45626234164.3347687535996.7550512152677.6953926439230.70
business
Other
766016330.15753488614.63754208823.53767317574.73
business
Total 46392250494.48 48441024611.38 51266361501.22 54693756805.43
240Bengang Steel Plates Co. Ltd. Annual Report 2025
2. Details about operating income and operating cost
Current period Current period Total
Item Principal business
Revenue Principal business Cost
Other business
Revenue Other business Cost Operating income Operating cost
Classification by the
time of commodity
transfer
Including: recognize
at a certain point in 45626234164.33 47687535996.75 757998253.03 749235374.69 46384232417.36 48436771371.44
time
-Recognize
over a certain period 8018077.12 4253239.94 8018077.12 4253239.94
of time
Total 45626234164.33 47687535996.75 766016330.15 753488614.63 46392250494.48 48441024611.38
Classification by
business area
Including：Domestic 36332697501.93 37842466554.45 766016330.15 753488614.63 37098713832.08 38595955169.08
Abroad 9293536662.40 9845069442.30 9293536662.40 9845069442.30
Total 45626234164.33 47687535996.75 766016330.15 753488614.63 46392250494.48 48441024611.38
241Bengang Steel Plates Co. Ltd. Annual Report 2025
(40) Tax and surcharges
Items Current period Previous period
Environmental tax 20503102.25 25266354.57
City maintenance and construction tax 6189588.33 10385897.62
Educational surcharge 4601665.24 7465694.70
Resource Tax 9628850.52 750000.00
Housing property tax 89305760.01 85712608.51
Land use right tax 14215642.88 14382618.16
Vehicle and vessel tax 153519.70 224158.74
Stamp duty 60614230.72 58834787.91
Others 10878.64 21247.15
Total 205223238.29 203043367.36
Note: The transition from water resource fees to taxes was implemented in December 2024. The
collection period for 2024 spanned one month whereas the collection period for 2025 covers a full 12
months; consequently the water resource tax for 2025 shows a significant month-over-month increase.
(41) Selling and distribution expenses
Items Current period Previous period
Import and export agency fee 41257018.21 52584810.12
Salary and benefits 57918567.27 67395074.92
Storage and warehousing fee 1717823.82 1977289.68
Others 35945383.84 20681443.05
Total 136838793.14 142638617.77
(42) General and administrative expenses
Items Current period Previous period
Salary and benefits 307157438.54 351493964.20
Insurance fee 17200072.53 12995462.13
Depreciation 62568460.35 55331155.82
Repair expense 3287105.74 4037864.04
Professional service expenses 10182784.99 13588178.36
242Bengang Steel Plates Co. Ltd. Annual Report 2025
Items Current period Previous period
Information System Service Fee 29868489.03 35322109.80
Business Travel Expenses 197040.78 2563843.56
Others 241758150.53 227455833.92
Total 672219542.49 702788411.83
(43) Research and development expenses
Items Current period Previous period
Depreciation materials and
90978954.1686415509.29
compensation etc.Total 90978954.16 86415509.29
(44) Financial expenses
Items Current period Previous period
Interest expenses 394193802.90 384713981.73
including: Interest expenses for lease
66502253.0962948951.58
liabilities
Less: Interest income 32518614.84 43019766.05
Exchange losses 55283349.61 -112286393.26
Others 11043592.37 10923494.40
Total 428002130.04 240331316.82
(45) Other income
Items Current period Previous period
Additional VAT Deduction 59045361.08 48812224.61
VAT Refund upon Collection 40759445.15 86963574.36
Central Government Environmental Protection
Award Fund 21087999.97 21088000.00
Gratuitous Transfer of Non-monetary Assets 19047472.00 19009956.00
Flue Gas Desulfurization and Denitrification Project
for No.5 Furnace Group & 4B Coke Oven at Plate 4092000.00 4092000.00
Ironmaking Plant
2020 Ecological Civilization Construction Special
Project (Special Steel EAF Upgrading Project) 4000000.00 4000000.00
Triple Dust Removal Retrofit for Roof Hoods of
No.4/5/6 Converters at Plate Steelmaking Plant 2922000.00 2922000.00
243Bengang Steel Plates Co. Ltd. Annual Report 2025
Items Current period Previous period
Plate factory area converter Gas Recovery and
Efficiency Improvement Project 2420000.03 2420000.00
Dust Removal Retrofit for Hot Metal Pretreatment
Station of Steelmaking Converters 1932600.00 1932600.00
Advanced Treatment Project of Carbon Fiber
Wastewater in Dongfeng Plant Area of Plate Coking 1900000.00 1900000.00
Plant
2021 Intellectual Manufacturing Strong Province
Special Fund 1620000.00 1620000.00
2021 Intellectual Manufacturing Strong Province
Special Fund（Digital and Networked Upgrade 960000.00 960000.00）
Government Subsidies received by the Sheet Material
R&D Institute 817792.79
Fiscal Support Funds 630000.00 110000.00
Desulfurization and Denitrification Project of
Coal-fired Boiler in High-pressure Workshop of 600000.00 600000.00
Bengang Power Plant
Second Sintering Finishing Dust Removal Ultra-low
Emission Reconstruction Project 410000.00 410000.00
Refund of Handling Fees for Withholding and
Remitting Individual Income Tax 337020.19 401253.23
Benxi Steel Automotive Sheet Engineering
Laboratory Construction Project 319076.00 -745133.80
2021 Liaoning Province Central-Guided Local
Science and Technology Development Funds: Second 300000.00
Batch of Planned Projects
2022: Digital Liaoning—A Strong Province of
Intelligent Manufacturing 300000.00
Municipal Funding Subsidy for Enterprise
Operations-related Patent Navigation Projects 200000.00
Liaoning Provincial Intellectual Property Office:
High-Value Patent Support Fund Subsidy 200000.00
2019 Provincial-Level Skills Master Workstation Fee 100000.00 100000.00
Design and Physicochemical Properties of
Metallurgical Slag Systems for Rare Earth 85200.00 15175.50
Steelmaking
Mechanism and Control of Rare Earth Oxysulfides on
Plasticization Behavior in Automotive Steels 35243.00 70200.00
2018 Municipal-Level Master Skills Workshop
Expenses 31727.00
2022 Liaoning Provincial Natural Science Foundation
Program Funds 28400.00
2019 Municipal-Level Master Skills Workshop
Expenses 25620.10
2021 Municipal-Level Skills Master Workstation Fee 20764.57 56454.88
2022 Provincial-Level Skills Master Workstation Fee 20225.43 67743.97
Xingliao Talent Program Government Grant 3600.00 46500.00
Special Incentive Funds for Business Stable
development Measures 2184600.00
Industrial Economy Stabilization and Growth
Incentive Fund 50000.00
Science & Technology Funds 300000.00
Development of Gen-3 AHSS for Vehicles 580000.00
2020 Provincial-Level Skills Master Workstation Fee 63799.16
Liaoning Provincial Standardization Subsidy 10000.00
High-tech Enterprise Incentive Funds 100000.00
244Bengang Steel Plates Co. Ltd. Annual Report 2025
Items Current period Previous period
Total 164261547.31 200140947.91
(46) Investment income
Items Current period Previous period
Income on long-term equity investment by equity
-2143337.68-1497124.69
method
Gain from debt restructuring 17512835.36 6496818.35
Others -26326290.61 -47967315.58
Total -10956792.93 -42967621.92
(47) Credit impairment loss
Items Current period Previous period
Loss from bad debts of account receivable 11356229.85 -51156620.60
Loss from bad debts of other receivables 8298098.74 1013615.40
Total 19654328.59 -50143005.20
(48) Asset impairment loss
Items Current period Previous period
Inventory and contract fulfillment cost
286889208.89278486334.42
impairment loss
Fixed assets impairment loss 17044069.90
Total 303933278.79 278486334.42
(49) Assets disposal gains
The amount recognized in
Items Current period Previous period
non-recurring profit
Fixed assets 3008.85 13020778.49 3008.85
Total 3008.85 13020778.49 3008.85
245Bengang Steel Plates Co. Ltd. Annual Report 2025
(50) Non-operating income
The amount
Items Current period Previous period recognized in
non-recurring profit
Non-current assets scrapped
2382736.203307408.922382736.20
gains
Compensation for breach of
13607613.048649121.9713607613.04
contract
Unpayable accounts payable
147073.92208933.55147073.92
(Debt settlement income)
Others 7475439.84 33623658.14 7475439.84
Total 23612863.00 45789122.58 23612863.00
(51) Non-operating expense
The amount
Items Current period Previous period recognized in
non-recurring profit
Non-current assets scrapped
47144692.7152327212.3147144692.71
loss
Administrative Fines and Late
10000.0010000.00
Payment Fees
Compensation liquidated
10856164.001544793.5710856164.00
damages and fines
Others 5195080.64 835992.86 5195080.64
Total 63205937.35 54707998.74 63205937.35
(52) Income tax expenses
1. Income tax expense
Items Current period Previous period
246Bengang Steel Plates Co. Ltd. Annual Report 2025
Items Current period Previous period
Income tax payable for the current year 62925475.32 73650531.92
Deferred income tax 579815.01 16786257.16
Total 63505290.33 90436789.08
2. Accounting profit and income tax expense adjustment process
Items Current period
Total profit -3791909693.52
Income tax expense calculated according to the official or applicable tax -568784358.54
rate
Effect of different tax rates applied by subsidiaries 10885221.49
Effect of adjustment of the income tax expense of prior period 389756.93
Effect of non-taxable income -9301605.75
Effect of non-deductible costs expenses or losses 635791.76
Effect of use of deductible losses of unrecognized deferred tax asset of -3122208.63
prior period
Effect of deductible temporary differences or deductible losses of 587974915.55
unrecognized deferred tax assets of current period
Effect of tax rate changes on the opening balance of deferred tax
assets/liabilities
Others 44827777.52
Income tax expenses 63505290.33
(53) Notes of statement of cash flows
1. Cash related to operating activities
（1）Cash received related to other operating activities
Items Current period Previous period
Collection of current accounts and advance
25154240.0020707880.77
payment on behalf
Interest income 32518614.84 43019928.42
Special subsidy income 76130817.09 61603389.34
247Bengang Steel Plates Co. Ltd. Annual Report 2025
Items Current period Previous period
Non-operating income 8089841.48 45108931.60
Others 69557902.36 72901959.17
Total 211451415.77 243342089.30
（2）Cash paid related to other operating activities
Items Current period Previous period
Current accounts 21458523.69 31632625.15
Administrative expenses 150737433.31 160290483.72
Selling expenses 46171361.15 43283792.38
Charges 3762378.42 3227037.36
Others 193898385.46 167670609.80
Total 416028082.03 406104548.41
2. Cash related to financing activities
（1）Other cash received in relation to financing activities
Item Current period Previous period
Notes letter of guarantee and letter of credit
margins 3237423685.03 3808123889.76
Recovery of short-term borrowing funds for
designated payments
Total 3237423685.03 3808123889.76
（2）Other cash paid in relation to financing activities
Item Current period Previous period
Notes letter of guarantee and letter of credit
margins 3036021201.32 4871226556.86
Short-term borrowing funds for designated
payments
Lease payments 154634911.14 68842727.36
Total 3190656112.46 4940069284.22
(54) Supplementary details of statement of cash flows
1. Supplementary details for statement of cash flows
248Bengang Steel Plates Co. Ltd. Annual Report 2025
Items Current period Previous period
1. A reconciliation of net profit to cash flows from
operating activities:
Net profit -3855414983.85 -4960117417.26
Add: Credit impairment loss 19654328.59 -50143005.20
Asset impairment loss 303933278.79 278486334.42
Depreciation of fixed assets 1680747982.09 1635677342.74
Depreciation of right of use assets 93918689.87 77920658.71
Amortization of intangible assets 11121055.91 9634760.52
Amortization of Long-term Deferred Expenses
Losses proceeds from disposal of PPE intangible
assets and other long-term assets (Earnings -3008.85 -13020778.49
marked“－”)
Scrapped losses from fixed assets (Earnings
44761956.5149019803.39
marked“－”)
Losses in fair value change (Earnings marked“－”)
Financial expenses (Earnings marked“－”) 449477152.51 272427588.47
Investment losses (Earnings marked“－”) 10956792.93 42967621.92
Deferred tax assets reduction (Addition marked“－”) -137604637.55 93801445.51
Deferred tax liabilities increased (Reduction
138184452.56-77015188.35
marked“－”)
Reduction of inventory (Addition marked“－”) 677000599.26 157980745.75
Operating receivable items reduction (Addition
-534373914.571927753242.95
marked“－”)
Operating payable items increase (Less marked"－") -691248364.58 1654268244.56
Others 71852.58 646594.61
Net cash flows generated from operating activities -1788816767.80 1100287994.25
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:
249Bengang Steel Plates Co. Ltd. Annual Report 2025
Items Current period Previous period
Ending balance of cash 287470306.31 1590205218.91
Less: Beginning balance of cash 1590205218.91 1199685408.38
Add: Ending balance of cash equivalents
Less: Opening balance of cash equivalents
The net increase in cash and cash equivalents -1302734912.60 390519810.53
2. The structure of cash and cash equivalents
Items Current period Previous period
1. Cash 287470306.31 1590205218.91
Including: Cash on hand
Bank deposits available on demand 287470306.31 1590205218.91
2. Cash equivalents
Including: Cash and cash equivalents limited to use
by the parent company of other
subsidiary in the group
3. Ending Balance of Cash and Cash Equivalents 287470306.31 1590205218.91
Including: Cash and cash equivalents held but not
available for use by the parent company
or other subsidiaries within the group
(55) Foreign currency monetary items
1. Foreign currency monetary items
Ending balance in Ending balance
Item Exchange rate
foreign currency translated to RMB
Cash and cash equivalents 92017493.96
Including: USD 13091494.13 7.0288 92017493.96
Non-current liabilities due
1038284.80
within one year
Including: JPY 23176000.00 0.0448 1038284.80
Long-term loans 1038284.80
Including: JPT 23176000.00 0.0448 1038284.80
250Bengang Steel Plates Co. Ltd. Annual Report 2025
Ending balance in Ending balance
Item Exchange rate
foreign currency translated to RMB
Accounts receivable 663734936.95
Including: USD 94430761.57 7.0288 663734936.95
Accounts payable 42678053.96
Including: USD 6071883.39 7.0288 42678053.96
6. Research and Development Expenses
1. Presented by Nature of Expense
Items Current period Previous period
Depreciation materials
90978954.1686415509.29
salaries etc.Professional Service Fee 3700000.00
Total 94678954.16 86415509.29
Including: Expensed R&D
90978954.1686415509.29
Expenditure
Capitalized R&D
3700000.00
Expenditures
2. Development expenditures for R&D projects that meet the criteria for capitalization
Increase during Decrease during
the current period the current period
Item 2024/12/31 Internal 2025/12/31
Development Recognized as
Expenditure Intangible assets
Sheet
Configuration-based 3700000.00 3700000.00
CPK Analysis
Total 3700000.00 3700000.00
251Bengang Steel Plates Co. Ltd. Annual Report 2025
7. Changes in the scope of consolidation
Changes in the Scope of Consolidation Due to Other Reasons
1. Establishment of a New Subsidiary: On March 28 2025 Bengang Steel Plates Co. Ltd.
together with its related party Angang Green Gold Industry Development Co. Ltd.jointly contributed RMB 60 million to establish Green Gold (Benxi) Renewable
Resources Co. Ltd.
2. Liquidation of Subsidiary: Changchun Bensteel Steel Sales Co. Ltd. was dissolved on
November 11 2025 with the unanimous consent of all shareholders.
8. Interests in other entities
(1) Equity in subsidiaries
1. Constitution of enterprise group
Shareholding
Principal
Name of Registered Registrat Nature of ratio(%) Acquisition
place of
subsidiary Capital ion place Business Dire Indire method
business
ct ct
Guangzhou
Bengang Steel Guangzh Guangzho
& Iron Trading 200 million Sales 100 Establishment
Co. Ltd ou u
Shanghai
Bengang
Metallurgy
Science and 230 million Shanghai Shanghai Sales 100 Establishment
Technology
Co. Ltd
Dalian
Benruitong
Automobile Manufacturi
Material 100 million Dalian Dalian 65 Establishment
Technology ng
Co. Ltd
Business
Bengang combination
POSCO Manufacturi
Cold-rolled 1.92 billion Benxi Benxi 75 under
Sheet Co. Ltd. ng
common
control
Green Gold
(Benxi) Manufacturi
Renewable 60 million Benxi Benxi 51 Establishment
Resources Co. ng
252Bengang Steel Plates Co. Ltd. Annual Report 2025
Shareholding
Principal
Name of Registered Registrat Nature of ratio(%) Acquisition
place of
subsidiary Capital ion place Business Dire Indire method
business
ct ct
Ltd.Business
Yantai Bengang combination
Steel Sales Co. 200 million Yantai Yantai Sales 100 under
Ltd.common
control
Business
Tianjin combination
Bengang Steel
Trading Co. 200 million Tianjin Tianjin Sales 100 under
Ltd.common
control
Benxi Bengang
Steel & Iron 30 million Benxi Benxi Sales 100 Establishment
Sales Co. Ltd.Shenyang
Bengang
Metallurgy Shenyan
Science and 230 million Shenyang Sales 100 Establishment
Technology g
Co. Ltd
Business
North Hengda combination
Manufacturi
Logistics Co. 150 million Benxi Benxi 100 under
ng
Ltd. common
control
Important non-wholly owned subsidiaries
253Bengang Steel Plates Co. Ltd. Annual Report 2025
Dividend
Proportion Profits and losses Ending
declared to
of attributing to balance of
Name of the subsidiaries distribute to
non-controlli non-controlling non-controlling
non-controlling
ng interests shareholders interests
shareholders
Bengang POSCO
Cold-rolled Sheet Co. 25.00% 78278160.42 60185989.14 614781199.15
Ltd.
254Bengang Steel Plates Co. Ltd. Annual Report 2025
2. Key financial information of significant but not wholly-owned subsidiaries
2025/12/312024/12/31
Name of
Non-curr Non-curr
the Non-current Current Non-current Current
Current assets Total assets ent Total liabilities Current assets Total assets ent Total liabilities
subsidiaries assets liabilities assets liabilities
liabilities liabilities
Bengang
POSCO
Cold-rolled 5416328740.21 1023071233.78 6439399973.99 3980275177.40 3980275177.40 6390756526.72 986052997.62 7376809524.34 4990053412.86 4990053412.86
Sheet Co.Ltd.Current period Previous period
Total Cash flow from Total Cash flow from
Name of the subsidiaries Operating Operating
Net profit comprehensive operating Net profit comprehensive operating
income income
income activities income activities
Bengang POSCO
Cold-rolled Sheet Co. 7302924455.99 313112641.68 313112641.68 96386958.56 8387472486.78 300929945.71 300929945.71 400460284.37
Ltd.
255Bengang Steel Plates Co. Ltd. Annual Report 2025
(2) Interests in joint ventures or associated enterprises
1. Summarized financial information of insignificant joint ventures and associates
2025/12/31 or current 2024/12/31 or previous
period period
Associated enterprises:
Total book value of investments 43269884.04 45413221.72
Total of the following items calculated
based on shareholding ratio
-Net profit -2143337.68 -1497124.69
-Other comprehensive income
-Total comprehensive income -2143337.68 -1497124.69
9. Government Subsidies
(1) Government grants included in current profit or loss
Accounting subjects Current period Previous period
Other income 104879166.04 150827470.07
Total 104879166.04 150827470.07
256Bengang Steel Plates Co. Ltd. Annual Report 2025
(2) Liabilities involving government subsidies
Amounts
Amounts
recognized in Offset costs or
recognized in
non-operating expenses Other 2025/12/31 Asset-related/income-relat
Liabilities 2024/12/31 Addition other income
income during during the changes ed
during the
the current current period
current period
period
Deferred Asset-related/income-relat
173919087.4747760050.0063479720.89158199416.58
income ed
257Bengang Steel Plates Co. Ltd. Annual Report 2025
10. Risks associated with financial instruments
(1) Various risks arising from financial instruments
In the course of its operations the Company is exposed to various financial risks: credit
risk liquidity risk and market risk (including currency risk interest rate risk and other
price risks). These financial risks and the risk management policies adopted by the
Company to mitigate them are described below:
1. Credit Risk
Credit risk refers to the risk that a counterparty fails to discharge a contractual obligation
resulting in a financial loss to the Company.
2. Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial
obligations on the maturity date.The Company’s policy is to ensure that it maintains sufficient cash to meet its maturing
obligations. Liquidity risk is managed centrally by the Company's treasury department.By monitoring cash balances highly liquid marketable securities and rolling forecasts of
cash flows for the next 12 months the treasury department ensures the Company has
adequate funds to settle its debts under all reasonably foreseeable circumstances. At the
same time the Company continuously monitors compliance with borrowing agreements
and obtains commitments from major financial institutions to provide sufficient standby
funding to meet both short-term and long-term capital requirements.The Company's various financial liabilities are listed as follows by maturity date with
undiscounted contractual cash flows:
258Bengang Steel Plates Co. Ltd. Annual Report 2025
2025/12/31
Items Immediate Total undiscounted
Within 1 year 1-2 years 2-5 years Over 5 years Book value
repayment contract amount
Short-term 333660470.12 333660470.12 333660470.12
loans
Notes 12962287642.88 12962287642.88 12962287642.88
payable
Accounts 2667236412.66 2667236412.66 2667236412.66
payable
Other 1695840066.44 900248576.00 179455553.68 2775544196.11 2775544196.11
payables
Long-term 927300000.00 2326771934.40 3687697823.71 6941769758.11 6941769758.11
loans
(including
long-term
loans due
within one
year)
Lease 348084227.49 420003905.75 817727027.56 1001705172.32 2587520333.13 2587520333.13
259Bengang Steel Plates Co. Ltd. Annual Report 2025
2025/12/31
Items Immediate Total undiscounted
Within 1 year 1-2 years 2-5 years Over 5 years Book value
repayment contract amount
liabilities
(including
lease
liabilities
due within
one year)
Bonds 5665550635.00 5665550635.00 5665550635.00
payable
(including
bonds
payable due
within one
year)
Total 24599959454.59 3647024416.15 4684880404.95 1001705172.32 33933569448.01 33933569448.01
Items 2024/12/31
260Bengang Steel Plates Co. Ltd. Annual Report 2025
Immediate Total undiscounted
Within 1 year 1-2 years 2-5 years Over 5 years Book value
repayment contract amount
Short-term
371055490.50371055490.50371055490.50
loans
Notes
12982703669.8612982703669.8612982703669.86
payable
Accounts
2680864210.1561748259.4819146969.732761759439.362761759439.36
payable
Other
1703827958.01394969845.27255896396.732354694200.012354694200.01
payables
Long-term
loans
(including
long-term 805270731.20 922270731.20 1969670731.20 3697212193.60 3697212193.60
loans due
within one
year)
Lease
liabilities 118242710.82 109583860.29 782383488.53 741944237.69 1752154297.33 1752154297.33
(including
261Bengang Steel Plates Co. Ltd. Annual Report 2025
2024/12/31
Items Immediate Total undiscounted
Within 1 year 1-2 years 2-5 years Over 5 years Book value
repayment contract amount
lease
liabilities
due within
one year)
Bonds
payable
(including
bonds 106989474.64 5569899459.53 5676888934.17 5676888934.17
payable due
within one
year)
Total 18768954245.18 7058472155.77 3027097586.19 741944237.69 29596468224.83 29596468224.83
262Bengang Steel Plates Co. Ltd. Annual Report 2025
3. Market Risk
Market risk of financial instruments refers to the risk that the fair value or future
cash flows of financial instruments fluctuate due to changes in market prices
including exchange rate risk interest rate risk and other price risks.
（1）Interest rate risk
Interest rate risk refers to the risk that the fair value of a financial instrument or
future cash flows will fluctuate due to changes in market interest rates.Fixed-rate and floating-rate interest-bearing financial instruments expose the
Company to fair value interest rate risk and cash flow interest rate risk respectively.The Company determines the relative proportions of fixed-rate and floating-rate
instruments based on prevailing market conditions and maintains an appropriate
mix of these instruments through regular reviews and monitoring. When necessary
the Company utilizes interest rate swaps to hedge against interest rate risk.
（2）Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flows of
financial instruments will fluctuate due to changes in foreign exchange rates.The exchange rate risk borne by the Company is mainly related to the US dollar
Hong Kong dollar Japanese yen and euro. Except for the Company's small amount
of raw material purchases and finished product sales settled in US dollars Hong
Kong dollars Japanese yen and euros the Company's other major business
activities are settled in RMB. As of December 31 2025 the assets or liabilities
described in the following table are the balances of US dollars Hong Kong dollars
Japanese yen and euros shown in the items:
Items 2025/12/31 2024/12/31
Cash and cash equivalents - USD 92017493.96 326239933.43
Cash and cash equivalents - HKD 192.36
Non-current liabilities due within one
year - JPY 1038284.80 1070731.20
Long-term loans - JPY 1038284.80 2141462.40
Accounts receivable – USD 663734936.95 253981286.89
Accounts payable - USD 42678053.96 59412915.21
Total 800507054.47 642846521.49
263Bengang Steel Plates Co. Ltd. Annual Report 2025
(2) Transfer of financial assets
1. Transfer of financial assets
Financial asset Transferred financial assets Information of
Basis of derecognition
transfer method Nature Amount derecognition
Retains substantially
Bill all of its risks and
Notes
endorsement/bill 226619630.11 Not derecognized rewards including the
Receivable
discount default risk associated
with it
Bill Accounts Almost all of its risks
endorsement/bill Receivable 4582118003.79 Derecognized and rewards have
discount Financing been transferred
Total 4808737633.90
Notes to the basis of derecognition: As of December 31 2025 the maturity date of
accounts receivable financing is 1 to 12 months. According to the relevant
provisions of the Bills of Exchange Law if the accepting bank refuses to pay the
holder has the right to claim against the Company. The Company believes that the
Company has transferred almost all its risks and rewards and therefore fully
terminate the recognition of its and related settled accounts payable and confirm
the discount fees.
2. Financial assets derecognized due to transfer
Methods of transferring Amount of Gains or losses related
Items
financial assets derecognition to derecognition
Accounts
Bill endorsement/bill
receivable 4582118003.79 25910295.40
discounting
financing
Total 4582118003.79 25910295.40
264Bengang Steel Plates Co. Ltd. Annual Report 2025
11. Disclosure of fair value
The input value used in fair value measurement is divided into three levels:
The input value of the first level is the unadjusted quotation of the same asset or liability that can
be obtained on the measurement date in an active market.The input value of the second level is the input value of the related assets or liabilities that is
directly or indirectly observable except the input value of the first level.The third level of input value is the unobservable input value of related assets or liabilities.The level to which the fair value measurement result belongs is determined by the lowest level to
which the input value that is important to the fair value measurement as a whole belongs.
(1) Fair value of assets and liabilities measured at fair value at the end of the period
Fair value at the end of the period
First level Second level Third level fair
Items
fair value fair value value Total
measurement measurement measurement
1. Continuous fair value
measurement
Accounts receivable
331321177.27331321177.27
financing
Other equity instrument
890420831.77890420831.77
investments
12. Related parties and related transactions
(1) Details of parent company
Share
Name of parent Place of Business Registered Voting
proportion
company Registry nature capital rights (%)
(%)
Benxi Steel & Iron Benxi RMB 9.83
Manufacturing 58.65 58.65
(Group) Co. Ltd. Liaoning billion
The ultimate controlling party of the Company: Ansteel Group Co. Ltd.
265Bengang Steel Plates Co. Ltd. Annual Report 2025
(2) Details of the Company’s subsidiariesFor details of the Company’s subsidiaries please refer to Note 8 “Equity in OtherEntities”.
（3） The company's joint ventures and associates
For details of the Company's important joint ventures or associates please refer to Note 8
“Equity in Other Entities”.Other joint ventures or associates that had related-party transactions with the Company
during the current period or had balances resulting from related-party transactions with
the Company in prior periods are described below:
Name of joint venture or associated enterprise Relationship
Shenyang Xiangyu New Materials Technology Co. Ltd. Associate
（4） Other related parties
Name of other related parties Relationship between other relatedparties and the Company
Bengang Group Co. Ltd. Parent company's controllingshareholder
Benxi Iron and Steel (Group) Co. LTD Parent company
Bengang Stainless Steel Cold Rolling Dandong Co. Ltd. Same parent company
Bengang Gaoyuan Industrial Development Co. Ltd. Same parent company
Bengang Group Dalian Refractory Materials Co. Ltd Same parent company
Benxi Aike Hydraulic Sealing Co. Ltd. Same parent company
Benxi Dongfenghu Steel Resource Utilization Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Real Estate Development Co.Ltd. Same parent company
Benxi Iron and Steel (Group) Engineering Construction
Supervision Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Machinery Manufacturing Co.Ltd. Same parent company
Benxi Iron and Steel (Group) Construction Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Mining Construction Engineering
Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Mining Liaoyang Ma'erling Pellet
Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Mining Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Thermal Power Development
Co. Ltd. Same parent company
266Bengang Steel Plates Co. Ltd. Annual Report 2025
Name of other related parties Relationship between other relatedparties and the Company
Benxi Steel & Iron (Group) Steel & Iron Process and Logistics
Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Industrial Development Co. Ltd. Same parent company
Benxi Xihu Metallurgical Furnace Material Co. Ltd. Same parent company
Benxi Weld Phosphate Overlay Manufacturing Co. Ltd. Same parent company
Benxi New Industrial Development Co. Ltd. Same parent company
Liaoning Hengtai Heavy Machinery Co. Ltd. Same parent company
Liaoning Hengtong Metallurgical Equipment Manufacturing
Co. Ltd. Same parent company
Liaoning Metallurgical Technician College Same parent company
Liaoning Metallurgical Vocational Technical College Same parent company
Liaoning Yitong Machinery Manufacturing Co. Ltd. Same parent company
Beijing Tianhongshan Hotel Co. Ltd. Same parent company
Liaoning Slag Micro-powder Co. Ltd. Same parent company
Bengang Group International Economic and Trade Co. Ltd. Belongs to Bengang Group Co.Ltd.Benxi Northern Iron Industry Co. Ltd. Belongs to Bengang Group Co.Ltd.Benxi Beiying Iron and Steel (Group) Co. Ltd. Belongs to Bengang Group Co.Ltd.Benxi Iron and Steel (Group) Mining Liaoyang Jiajiaobao Iron Belongs to Bengang Group Co.Mine Co. Ltd. Ltd.? Liaoning Hengyi Steel Trade Co. Ltd. Belongs to Bengang Group Co.Ltd.Liaoning Lide Internet of Things Co. Ltd. Belongs to Bengang Group Co.Ltd.Tianjin Bengang Plate Processing & Distribution Co. Ltd. Belongs to Bengang Group Co.Ltd.Benxi Beifang Steel Rolling Co.Ltd. Belongs to Bengang Group Co.Ltd.Benxi Iron and Steel (Group) Mining Yanjia Valley Limestone Belongs to Bengang Group Co.Mine Co. Ltd. Ltd.Angang (Hangzhou) Automotive Materials Technology Co.Ltd. Belongs to Angang Group Co. Ltd.Angang (Liaoning) Materials Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Electrical Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Scrap Resources (Anshan) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Processing & Distribution (Dalian) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Processing & Distribution (Changchun) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Distribution (Hefei) Co. Ltd. Belongs to Angang Group Co. Ltd.
267Bengang Steel Plates Co. Ltd. Annual Report 2025
Name of other related parties Relationship between other relatedparties and the Company
Angang Steel Distribution (Wuhan) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Rope Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Engineering Production Operations & Maintenance
(Anshan) Co. Ltd. Belongs to Angang Group Co. Ltd.
Angang Steel Company Limited Belongs to Angang Group Co. Ltd.Angang Chemical Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Group Railway Equipment Checking & Repairing
Company Belongs to Angang Group Co. Ltd.Angang Group International Economic & Trade Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Group International Economic & Trade Co. Ltd.Benxi Branch Belongs to Angang Group Co. Ltd.Angang Group Mining Gongchangling Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Group Automation Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Construction Group Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Mining Machinery Manufacturing Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Green Resources Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Energy Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Automobile Transportation Co.Ltd. Belongs to Angang Group Co. Ltd.Angang Industrial Group Metallurgical Machinery Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Shuangsheng (Anshan) Fan Co. Ltd Belongs to Angang Group Co. Ltd.Ansteel Water Technology (Liaoning) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Heavy Machinery Design & Research Institute Co.Ltd. Belongs to Angang Group Co. Ltd.Angang Heavy Machinery Co. Ltd. Belongs to Angang Group Co. Ltd.Anshan Angang International Travel Agency Co. Ltd. Belongs to Angang Group Co. Ltd.Anshan Iron & Steel Metallurgical Furnace Material
Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Anshan Jianbo Engineering Testing Co. Ltd. Belongs to Angang Group Co. Ltd.Benxi Steel and Iron(Group)Tengda Co.Ltd. Belongs to Angang Group Co. Ltd.Benxi Iron and Steel (Group) Information Automation Co.Ltd. Belongs to Angang Group Co. Ltd.DeLin Industrial Products Co. Ltd. Belongs to Angang Group Co. Ltd.DeLin Land Port Supply Chain Services Co. Ltd. Belongs to Angang Group Co. Ltd.Guangzhou Angang Steel Processing Co. Ltd. Belongs to Angang Group Co. Ltd.Lingyuan Iron & Steel Group Co. Ltd. Belongs to Angang Group Co. Ltd.Pangang Group Jiangyou Great Wall Special Steel Co. Ltd. Belongs to Angang Group Co. Ltd.
268Bengang Steel Plates Co. Ltd. Annual Report 2025
Name of other related parties Relationship between other relatedparties and the Company
Panzhong Yihong Metal Products (Chongqing) Co. Ltd. Belongs to Angang Group Co. Ltd.Shenyang Angang International Trade Co.Ltd. Belongs to Angang Group Co. Ltd.Tianjin Angang Steel Processing & Distribution Co. Ltd. Belongs to Angang Group Co. Ltd.Changchun FAW Angang Steel Processing & Distribution Co.Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Processing & Distribution (Zhengzhou) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Group Beijing Research Institute Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Group Mining Co. LTD Belongs to Angang Group Co. Ltd.Ansteel Group Co. Ltd Belongs to Angang Group Co. Ltd.Angang Green Gold Industry Development Co. Ltd. Belongs to Angang Group Co. Ltd.Angang ShenYang Steel Service Center Co.Ltd. Belongs to Angang Group Co. Ltd.Angang Industrial Group (Anshan) Equipment Operation &
Maintenance Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Tendering Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Cast Steel Co. Ltd. Belongs to Angang Group Co. Ltd.Anshan Iron and Steel Group Co. Ltd. Belongs to Angang Group Co. Ltd.Anshan Iron and Steel Labor Research Institute Technology
Co. Ltd. Belongs to Angang Group Co. Ltd.Anzi (Tianjin) Financial Leasing Co. Ltd. Belongs to Angang Group Co. Ltd.Chengdu Xingyun Smart Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Pangang Group Chengdu Vanadium & Titanium Resources
Development Co. Ltd. Belongs to Angang Group Co. Ltd.Yantai Angang International Trading Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Guangzhou Automotive Steel Co. Ltd. Associate of Ansteel Group
Angang Group Engineering Technology Co. Ltd. Associate of Ansteel Group
Angang Mining Construction Co. Ltd. Associate of Ansteel Group
Beijing Zhongliangang E-commerce Co. Ltd. Associate of Ansteel Group
Bengang Electrical Co. Ltd. Associate of Ansteel Group
Bengang Automotive Transport Co. Ltd. Associate of Ansteel Group
Benxi Gaoxin Drilling Tools Manufacturing Co. Ltd. Associate of Ansteel Group
Heilongjiang Longmei Mining Group Co. Ltd. Associate of Ansteel Group
Hongda Engineering Technology (Liaoning) Co. Ltd. Associate of Ansteel Group
Pangang Group Engineering Technology Consulting Co. Ltd. Associate of Ansteel Group
269Bengang Steel Plates Co. Ltd. Annual Report 2025
Name of other related parties Relationship between other relatedparties and the Company
Shenyang Xiangyu New Materials Technology Co. Ltd. Associate of Ansteel Group
China Ordins Group Co.Ltd. Associate of Ansteel Group
MCC Northern Engineering & Technology Co. Ltd. Associate of Ansteel Group
MCC South Engineering & Technology Co. Ltd. Associate of Ansteel Group
MCC-CEI Engineering Technology Co. Ltd. Associate of Ansteel Group
Benxi Yuneng Thermal Power Co. Ltd. Joint Ventures of Ansteel Group
（5） Related-party transactions
1. Related party transactions of purchasing and selling goods and services
Purchasing goods and services
Related parties Content of relatedtransactions Current period Previous period
Angang (Liaoning) Materials Professional
Technology Co. Ltd. Service Fee 251698.11 907452.84
Angang (Liaoning) Materials Engineering
Technology Co. Ltd. Costs 218000.00
Angang Electrical Co. Ltd. Repair costs 1565600.00 1088249.99
Angang Scrap Resources (Anshan) Ingredients and
Co. Ltd. Auxiliary 366135058.71 1124802017.73Materials
Angang Steel Processing &
Distribution (Dalian) Co. Ltd. Raw material 653381.03
Angang Steel Processing &
Distribution (Dalian) Co. Ltd. Processing Fee 374521.01
Angang Steel Processing &
Distribution (Changchun) Co. Ltd. Processing Fee 1317197.42 1041620.63
Angang Steel Processing &
Distribution (Changchun) Co. Ltd. Storage Fee 2485.80
Angang Steel Processing &
Distribution (Zhengzhou) Co. Ltd. Processing Fee 131942.35
Angang Steel Distribution (Wuhan)
Co. Ltd. Raw material 395360.40
Angang Engineering Technology
Survey and Design Institute (Anshan) Engineering 53000.00
Co. Ltd. Costs
Angang Steel Company Limited AuxiliaryMaterials 4418367.06 3161789.58
Ansteel Group Railway Equipment
Checking & Repairing Company Spare Parts 366360.00
Angang Group Beijing Research Professional
Institute Co. Ltd. Service Fee 825471.70 820000.00
Angang Group Engineering Engineering
Technology Co. Ltd. Costs 269633416.87 135490139.57
Angang Group Engineering
Technology Co. Ltd. Spare Parts 219963883.45
Angang Group Engineering
Technology Co. Ltd. Repair costs 933900.00 440000.00
Angang Group Engineering Safety production
Technology Co. Ltd. fee 115000.00
270Bengang Steel Plates Co. Ltd. Annual Report 2025
Related parties Content of relatedtransactions Current period Previous period
Angang Group International Raw and
Economic & Trade Co. Ltd. Auxiliary 148149910.36 186243033.73Materials
Agency Service
Angang Group International Fees Port
Economic & Trade Co. Ltd. Miscellaneous 43899447.77
Fees
Angang Group Energy-Saving General
Technology Services Co. Ltd. Contracting Fee 26723249.82
Ansteel Group Mining Co. LTD Raw material 184238740.56 308667259.88
Ansteel Group Co. Ltd Service Fee 5681680.10 208470.50
Angang Group Automation Co. Ltd. EngineeringCosts 1600000.00 51010000.00
Angang Construction Group Co. Ltd. EngineeringCosts 46591176.52
Angang Construction Group Co. Ltd. EngineeringMaterials 27446205.00
Angang Mining Automotive
Transportation Co. Ltd. Shipping Fee 297872.02
Angang Green Gold Industry
Development Co. Ltd. Service Fees 365240.50
Angang Green Gold Industry Professional
Development Co. Ltd. Service Fee 167263.16
Angang Green Resources Technology
Co. Ltd. Shipping Fee 6772731.67
Angang Energy Technology Co. Ltd. AuxiliaryMaterials 3012051.56
Ansteel Automobile Transportation
Co.Ltd. Shipping Fee 4496389.98
Angang ShenYang Steel Service
Center Co.Ltd. Processing Fee 6261.54
Angang Industrial Group (Anshan)
Equipment Operation & Maintenance GeneralContracting Fee 6158477.20 9339387.20Co. Ltd.Angang Industrial Group
Metallurgical Machinery Co. Ltd. Spare Parts 9397223.24 9439932.17
Angang Industrial Group
Metallurgical Machinery Co. Ltd. Repair costs 1100790.00 1005720.00
Angang Industrial Group Co. Ltd. Service Fee 131145.12
Ansteel Shuangsheng (Anshan) Fan
Co. Ltd Repair costs 215000.00
Ansteel Water Technology (Liaoning) Professional
Co. Ltd. Service Fee 35491635.59
Ansteel Water Technology (Liaoning) Auxiliary
Co. Ltd. Materials 5169659.54
Angang Heavy Machinery Design & Engineering
Research Institute Co. Ltd. Costs 15865600.00
Angang Heavy Machinery Co. Ltd. Spare Parts 3257110.00 7304948.42
Angang Heavy Machinery Co. Ltd. Repair costs 377200.00
Anshan Angang International Travel Business Travel
Agency Co. Ltd. Service Fee 86877.48 3312463.08
Anshan Iron and Steel Group Co. Conference
Ltd. Expenses 1207518.87
Anshan Iron and Steel Labor
Research Institute Technology Co. Service Fee 15962.26 15622.64
Ltd.Anshan Iron & Steel Metallurgical
Furnace Material Technology Co. AuxiliaryMaterials 1990920.55 26520619.29Ltd.
271Bengang Steel Plates Co. Ltd. Annual Report 2025
Related parties Content of relatedtransactions Current period Previous period
Anshan Jianbo Engineering Testing Engineering
Co. Ltd. Costs 197000.00 238000.00
Business
Beijing Tianhongshan Hotel Co. Ltd. Entertainment 1980.00 2064.00
Expenses
Bengang Stainless Steel Cold Rolling
Dandong Co. Ltd. Spare Parts 805659.29
Bengang Stainless Steel Cold Rolling Auxiliary
Dandong Co. Ltd. Materials 30751.50
Bengang Electrical Co. Ltd. AuxiliaryMaterials 182063694.41 182269804.01
Bengang Electrical Co. Ltd. Repair costs 26005217.60 14005845.47
Bengang Gaoyuan Industrial
Development Co. Ltd. Repair costs 4525056.28 5034146.00
Bengang Gaoyuan Industrial
Development Co. Ltd. Spare Parts 2319400.00 1286267.43
Bengang Gaoyuan Industrial Engineering
Development Co. Ltd. Costs 1480000.00 7775792.86
Bengang Group Dalian Refractory Auxiliary
Materials Co. Ltd Materials 1830776.63 424516.33
Bengang Group International Agency Service
Economic and Trade Co. Ltd. Fee 2911013.71 78435468.93
Bengang Group Co. Ltd. Service Fee 1683867.92 1683819.02
Benxi Aike Hydraulic Sealing Co.Ltd. Spare Parts 6559159.49 7126761.45
Benxi Northern Iron Industry Co.Ltd. Raw material 5842124.09 201837093.10
Benxi Beiying Iron and Steel (Group)
Co. Ltd. Raw material 11511662558.65 10277907965.06
Benxi Beiying Iron and Steel (Group)
Co. Ltd. Fuel 1081232345.96 965352005.76
Benxi Beiying Iron and Steel (Group) Energy and
Co. Ltd. Power 714195035.43 646206682.53
Benxi Beiying Iron and Steel (Group) General
Co. Ltd. Contracting Fee 87918046.05 73598631.48
Benxi Beiying Iron and Steel (Group)
Co. Ltd. Service Fee 19203742.48 50307300.75
Benxi Beiying Iron and Steel (Group) Auxiliary
Co. Ltd. Materials 7400125.75 6607022.31
Benxi Beiying Iron and Steel (Group)
Co. Ltd. Repair costs 6713436.35 14147260.22
Benxi Dongfenghu Steel Resource Raw Materials
Utilization Co. Ltd. and Fuels 20379284.45 30237287.95
Benxi Dongfenghu Steel Resource Auxiliary
Utilization Co. Ltd. Materials 3442039.52
Benxi Iron and Steel (Group) Real
Estate Development Co. Ltd. Scrap steel 318201.40
Benxi Iron and Steel (Group)
Engineering Construction Supervision Engineering
Co. Ltd. Costs
3816036.071973663.48
Logistics
Benxi Steel and Iron(Group)Tengda Transportation
Co.Ltd. and Port 497987838.29 628386401.75Miscellaneous
Fees
Benxi Steel and Iron(Group)Tengda
Co.Ltd. Fuel 56953.76
Benxi Iron and Steel (Group)
Machinery Manufacturing Co. Ltd. Spare Parts 174689669.40 150062415.65
272Bengang Steel Plates Co. Ltd. Annual Report 2025
Related parties Content of relatedtransactions Current period Previous period
Benxi Iron and Steel (Group) Auxiliary
Machinery Manufacturing Co. Ltd. Materials 29379319.62 25237506.53
Benxi Iron and Steel (Group) Engineering
Machinery Manufacturing Co. Ltd. Costs 25610600.00 16210213.36
Benxi Iron and Steel (Group)
Machinery Manufacturing Co. Ltd. Repair costs 18848577.95 32903771.81
Benxi Iron and Steel (Group) General
Machinery Manufacturing Co. Ltd. Contracting Fee 17484318.97 36841060.54
Benxi Iron and Steel (Group)
Machinery Manufacturing Co. Ltd. Scrap steel 6789954.71 5832726.17
Benxi Iron and Steel (Group) Labor
Machinery Manufacturing Co. Ltd. Outsourcing Fees 343515.90
Benxi Iron and Steel (Group) Engineering
Construction Co. Ltd. Costs 200504950.06 227018510.96
Benxi Iron and Steel (Group) Raw Materials
Construction Co. Ltd. and Spare Parts 105468006.63 2823320.95
Benxi Iron and Steel (Group)
Construction Co. Ltd. Repair costs 43661964.36 56847478.43
Benxi Iron and Steel (Group)
Construction Co. Ltd. Service Fees 15060441.42 37928559.17
Benxi Iron and Steel (Group) General
Construction Co. Ltd. Contracting Fee 10517373.68
Benxi Iron and Steel (Group) Safety production
Construction Co. Ltd. fee 9358381.40 7021845.00
Benxi Iron and Steel (Group) Packaging
Construction Co. Ltd. Materials 4693653.22
Benxi Iron and Steel (Group) Mining
Construction Engineering Co. Ltd. Repair costs 18916783.00 17918450.86
Benxi Iron and Steel (Group) Mining Engineering
Construction Engineering Co. Ltd. Costs 16825950.32 15527451.16
Benxi Steel Group Mining Liaoyang
Jiajiaopu Iron Mine Co. Ltd. Scrap steel 238064.10
Benxi Steel Group Mining Liaoyang
Ma'erling Pelletizing Co. Ltd. Raw material 1955304447.95 2504269802.79
Benxi Iron and Steel (Group) Mining
Co. Ltd. Raw material 3847660317.52 4184701046.59
Benxi Iron and Steel (Group) Mining Auxiliary
Co. Ltd. Materials 359470037.95 390958275.91
Benxi Iron and Steel (Group) Mining
Co. Ltd. Scrap steel 14188073.88 15430896.37
Benxi Iron and Steel (Group)
Thermal Power Development Co. Office Expenses 803500.04 742575.27
Ltd.Benxi Iron and Steel (Group)
Thermal Power Development Co. Scrap steel 466787.20 104836.20
Ltd.Benxi Iron and Steel (Group)
Thermal Power Development Co. Heating Fee 414053.58 88239.27
Ltd.Benxi Steel Group Equipment
Engineering Co. Ltd. Repair costs 503936694.47 462560636.62
Benxi Steel Group Equipment Engineering
Engineering Co. Ltd. Costs 305070682.48 656078499.29
Benxi Steel Group Equipment
Engineering Co. Ltd. Spare Parts 114895235.76 17275400.90
Benxi Steel Group Equipment
Engineering Co. Ltd. Scrap steel 5904295.25 887757.15
Benxi Steel Group Industrial
Development Co. Ltd. Scrap steel 209449807.83 253156791.91
273Bengang Steel Plates Co. Ltd. Annual Report 2025
Related parties Content of relatedtransactions Current period Previous period
Benxi Steel Group Industrial
Development Co. Ltd. Raw material 12329245.13 14902053.03
Benxi Steel Group Industrial Auxiliary
Development Co. Ltd. Materials 11337146.08 13702927.50
Benxi Steel Group Industrial
Development Co. Ltd. Landscaping Fee 6490060.00 5016377.00
Benxi Steel Group Industrial
Development Co. Ltd. Repair costs 3816150.00 24274612.53
Benxi Steel Group Industrial
Development Co. Ltd. Shipping Fee 3305540.71 5580324.46
Benxi Steel Group Industrial Scrap and Waste
Development Co. Ltd. Materials 154732.70 187021.58
Benxi Steel Group Information
Automation Co. Ltd. Spare Parts 152632589.58 7016883.54
Benxi Steel Group Information Engineering
Automation Co. Ltd. Costs 80243333.07 164712992.61
Information
Benxi Steel Group Information System
Automation Co. Ltd. Operations and 67712500.00 32650000.00
Maintenance Fees
Benxi Steel Group Information
Automation Co. Ltd. Repair costs 9054720.00 4391141.90
Benxi Iron and Steel (Group) Co. Security and Fire
LTD Protection Fees 42303277.02 35406267.46
Benxi Iron and Steel (Group) Co. Technical Service
LTD Fee 7927729.52 9377880.96
Benxi Iron and Steel (Group) Co.LTD Shipping Fee 2748343.11 216297.35
Benxi Iron and Steel (Group) Co. Engineering
LTD Costs 1122323.82 15954973.44
Benxi Iron and Steel (Group) Co. Energy and
LTD Power 112938.29 283478.17
Benxi Iron and Steel (Group) Co. Scrap and Waste
LTD Materials 13814.61 422431.09
Benxi Xihu Metallurgical Furnace Auxiliary
Material Co. Ltd. Materials 157315656.04 192903880.17
Benxi New Industrial Development
Co. Ltd. Service Fee 8276512.53 3505338.46
Benxi New Industrial Development Business
Co. Ltd. Entertainment 539773.50 610742.00Expenses
Benxi New Industrial Development
Co. Ltd. Scrap steel 22295.00
Benxi Yuneng Thermal Power Co. Energy and
Ltd. Power 139151210.07
Chengdu Pangang Hotel Co. Ltd. ConferenceExpenses 949039.62
Dalian Bolore Steel Pipe Co. Ltd. AuxiliaryMaterials 2043620.46
Delin Industrial Products Co. Ltd Spare Parts 55310468.89 21689081.34
Delin Industrial Products Co. Ltd AuxiliaryMaterials 25328205.57 9958263.76
Delin Land Port Supply Chain
Services Co. Ltd Other service fees 4583598.03 5364916.18
Delin Land Port Supply Chain
Services Co. Ltd Sales Service Fee 2417589.52 3103633.08
Delin Land Port Supply Chain
Services Co. Ltd Storage Fee 1539395.28 732650.90
Delin Land Port Supply Chain
Services Co. Ltd Raw material 548465.82
Liaoning Hengtai Heavy Machinery Spare Parts 26352512.62 9935735.98
274Bengang Steel Plates Co. Ltd. Annual Report 2025
Related parties Content of relatedtransactions Current period Previous period
Co. Ltd.Liaoning Hengtai Heavy Machinery
Co. Ltd. Repair costs 23005807.00 24024198.00
Liaoning Hengtai Heavy Machinery Safety production
Co. Ltd. fee 2406000.00
Liaoning Hengtai Heavy Machinery Engineering
Co. Ltd. Costs 1130000.00 3856300.00
Liaoning Hengtai Heavy Machinery General
Co. Ltd. Contracting Fee 372915.00
Liaoning Hengtai Heavy Machinery Labor
Co. Ltd. Outsourcing Fees 371360.00 530585.00
Liaoning Hengtai Heavy Machinery
Co. Ltd. Scrap steel 307201.60 115824.78
Liaoning Hengtai Heavy Machinery
Co. Ltd. Shipping Fee 258110.25 191560.00
Liaoning Hengtong Metallurgical
Equipment Manufacturing Co. Ltd. Spare Parts 141700956.31 152452904.58
Liaoning Hengtong Metallurgical
Equipment Manufacturing Co. Ltd. Repair costs 10647475.00 10198700.00
Liaoning Lide Internet of Things Co.Ltd. Shipping Fee 188323866.99 24602117.69
Liaoning Lide Internet of Things Co. General
Ltd. Contracting Fee 107822916.72 192707239.82
Liaoning Metallurgical Vocational Training Program
Technical College Fees 2171338.83 566077.66
Liaoning Metallurgical Vocational
Technical College Office Expenses 35417.48
Liaoning Yitong Machinery
Manufacturing Co. Ltd. Spare Parts 23426479.58 12814141.11
Liaoning Yitong Machinery
Manufacturing Co. Ltd. Scrap steel 259947.08 142189.46
Liaoning Yitong Machinery
Manufacturing Co. Ltd. Repair costs 81128.33 46204.61
Lingyuan Iron & Steel Group Co.Ltd. Fuel 9268227.70
Pangang Group Chengdu Vanadium
& Titanium Resources Development AuxiliaryMaterials 9240815.38 2361588.46Co. Ltd.Pangang Group Engineering Engineering
Technology Consulting Co. Ltd. Costs 698000.00 736600.00
Shanxi Materials International Energy
Co. Ltd. Fuel 21171289.92
Shenyang Angang International Trade
Co.Ltd. Raw material 46156805.68
Tianjin Bengang Plate Processing &
Distribution Co. Ltd. Processing Fee 391401.34 1300732.50
Tianjin Bengang Plate Processing &
Distribution Co. Ltd. Storage Fee 14635.26 3549.41
Selling goods and services
275Bengang Steel Plates Co. Ltd. Annual Report 2025
Related parties Content of relatedtransactions Current period Previous period
Angang (Hangzhou) Automotive Steel and Steel
Materials Technology Co. Ltd. Products 26110728.93 2467535.99
Angang Steel Processing and Warehousing
Distribution (Dalian) Co. Ltd. Revenue 6572.87 14426.21
Angang Steel Processing and Steel and Steel
Distribution (Dalian) Co. Ltd. Products 22036253.52 48365420.36
Angang Steel Processing and Processing
Distribution (Dalian) Co. Ltd. Income 709.9 1558.10
Angang Steel Processing and Steel and Steel
Distribution (Changchun) Co. Ltd. Products 2889078.81 3171633.00
Angang Steel Processing and Steel and Steel
Distribution (Zhengzhou) Co. Ltd. Products 11380701.31
Ansteel Steel Distribution (Hefei) Steel and Steel
Co. Ltd. Products 1088311.34
Ansteel Steel Distribution (Wuhan) Steel and Steel
Co. Ltd. Products 8928420.00 1058038.90
Angang Steel Company Limited Steel and SteelProducts 6093129.73 923408.47
Ansteel Guangzhou Automotive Steel Steel and Steel
Co. Ltd. Products 371488.99
Angang Chemical Technology Co. Chemicals and
Ltd. By-products 234623418.48 255050438.20
Angang Group Engineering &
Technology Co. Ltd. Energy and Power 81332.01 47707.68
Steel and Steel
Angang Group International Products
Economic & Trading Co. Ltd. Chemicals and 228316260.00By-products
Energy and Power
Angang Group International
Economic & Trade Co. Ltd. — Rental Income 1882438.68
Benxi Branch
Angang Group Energy-Saving
Technology Services Co. Ltd. Energy and Power 3634627.65
Ansteel Group Co. Ltd Energy and Power 8611.80 1613.64
Angang Construction Group Co. Ltd. Energy and Power 8781.12
Angang Mining Machinery Steel and Steel
Manufacturing Co. Ltd. Products 27346925.12 30239734.42
Angang Green Resources Technology Raw and
Co. Ltd. Auxiliary 18949004.26 42248746.78Materials
Angang Energy Technology Co. Ltd. Chemicals andBy-products 20588079.91 25955120.37
Angang ShenYang Steel Service Logistics and
Center Co.Ltd. Transportation 5583.98 474927.84Revenue
Angang Industrial Group Steel and Steel
Metallurgical Machinery Co. Ltd. Products 932182.88
Ansteel Water Technology (Liaoning)
Co. Ltd. Energy and Power 8387582.70
Angang Tendering Co. Ltd. Energy and Power 22215.96
Angang Tendering Co. Ltd. Rental Income 902511.86
Ansteel Cast Steel Co. Ltd. Scrap steel 2319678.10
Bengang Electrical Co. Ltd. Other ServiceIncome 5770.61 107.35
276Bengang Steel Plates Co. Ltd. Annual Report 2025
Related parties Content of relatedtransactions Current period Previous period
Bengang Gaoyuan Industrial
Development Co. Ltd. Energy and Power 200.01
Bengang Group Dalian Refractory Steel and Steel
Materials Co. Ltd Products 4355726.73 5729788.15
Ben Steel Group Co. Ltd Energy and Power 182800.50 2823645.00
Scrap Steel
Benxi Northern Iron Industry Co. Auxiliary
Ltd. Materials Raw 176768061.62 84620440.80
Materials
Raw and
Benxi Beifang Steel Rolling Co.Ltd. Auxiliary 1106623.83 1305509.83
Materials
Benxi Beiying Iron and Steel (Group)
Co. LTD Energy and Power 56342466.22
Benxi Beiying Iron and Steel (Group) Other Service
Co. LTD Income 164810.38
Benxi Beiying Iron and Steel (Group) Raw and
Co. LTD Auxiliary 124771137.44 272771274.28Materials
Benxi Dongfenghu Steel Resource Chemicals and
Utilization Co. Ltd. By-products 3079247.01 4221436.54
Benxi Dongfenghu Steel Resource
Utilization Co. Ltd. Analytical Testing 38632.07 52961.92
Benxi Dongfenghu Steel Resource
Utilization Co. Ltd. Energy and Power 4062613.19 5569564.16
Benxi Dongfenghu Steel Resource Raw and
Utilization Co. Ltd. Auxiliary 2538277.48 3479804.41Materials
Benxi Iron and Steel (Group) Real
Estate Development Co. Ltd. Energy and Power 3357.39 23160.82
Benxi Iron and Steel (Group)
Engineering Construction Supervision Energy and Power 1518.81 1909.73
Co. Ltd.Benxi Iron and Steel (Group) Processing
Machinery Manufacturing Co. LTD Income 20095.65 14894.47
Benxi Iron and Steel (Group)
Machinery Manufacturing Co. LTD Analytical Testing 332499.99 246441.91
Benxi Iron and Steel (Group)
Machinery Manufacturing Co. LTD Energy and Power 9406307.11 6971754.52
Benxi Iron and Steel (Group) Logistics and
Machinery Manufacturing Co. LTD Warehousing 1128.28 836.26Revenue
Benxi Iron and Steel (Group) Raw and
Machinery Manufacturing Co. LTD Auxiliary 15549468.75 11524935.11Materials
Benxi Iron and Steel (Group)
Construction Co. Ltd Analytical Testing 5033.20
Benxi Iron and Steel (Group)
Construction Co. Ltd Energy and Power 2053712.95 2009079.40
Benxi Iron and Steel (Group) Mining Steel and Steel
Construction Engineering Co. Ltd. Products 152341.59 147535.77
Benxi Iron and Steel (Group) Mining
Construction Engineering Co. Ltd. Energy and Power 129012.84 124942.95
Benxi Steel Group Mining Liaoyang
Jiajiaopu Iron Mine Co. Ltd. Analytical Testing 349416.98
Benxi Steel Group Mining Liaoyang
Jiajiaopu Iron Mine Co. Ltd. Energy and Power 20539.26 26844.93
277Bengang Steel Plates Co. Ltd. Annual Report 2025
Related parties Content of relatedtransactions Current period Previous period
Benxi Steel Group Mining Liaoyang
Ma'erling Pelletizing Co. Ltd. Testing Fee 415446.22
Benxi Steel Group Mining Liaoyang
Ma'erling Pelletizing Co. Ltd. Energy and Power 5766.27 8223.26
Benxi Steel Group Mining Liaoyang
Ma'erling Pelletizing Co. Ltd. Fuel 40118126.87 57212321.32
Benxi Iron and Steel (Group) Mining
Yanjia Valley Limestone Mine Co. Other ServiceIncome 34777.36Ltd.Benxi Iron and Steel (Group) Mining Steel and Steel
Co. LTD Products 6121141.19 180958.56
Benxi Iron and Steel (Group) Mining Chemicals and
Co. LTD By-products 7120480.07 210501.90
Benxi Iron and Steel (Group) Mining
Co. LTD Energy and Power 171262470.82 5063011.87
Benxi Iron and Steel (Group) Mining Other Service
Co. LTD Income 6917514.72 204501.66
Benxi Iron and Steel (Group) Mining
Co. LTD Fuel 57489832.86 1699565.03
Benxi Iron and Steel (Group)
Thermal Power Development Co. Testing Fee 150535.85
Ltd.Benxi Iron and Steel (Group)
Thermal Power Development Co. Fuels Energyand Power 55147166.11 46021096.45Ltd.Benxi Iron and Steel (Group) Steel and Steel
Equipment Engineering Co. LTD Products 385719.02 2591635.34
Benxi Iron and Steel (Group)
Equipment Engineering Co. LTD Testing Fee 4685.09
Benxi Iron and Steel (Group)
Equipment Engineering Co. LTD Energy and Power 1936577.72 13011811.73
Benxi Iron and Steel (Group) Scrap and Waste
Industrial Development Co. LTD Materials 3172402.59 3739807.91
Benxi Iron and Steel (Group)
Industrial Development Co. LTD Testing Fee 377.36 444.85
Benxi Iron and Steel (Group)
Industrial Development Co. LTD Energy and Power 9597087.14 11313590.06
Benxi Iron and Steel (Group) Raw and
Industrial Development Co. LTD Auxiliary 99695822.06 117527083.48Materials
Benxi Steel Group Information
Automation Co. Ltd. Energy and Power 382134.53 488917.53
Benxi Iron and Steel (Group) Co. Auxiliary
LTD Materials 879064.63 871082.85
Benxi Iron and Steel (Group) Co.LTD Energy and Power 10382274.20 10288004.69
Benxi Xihu Metallurgical Furnace
Material Co. Ltd. Energy and Power 394801.50 236195.71
Benxi Weld Phosphate Overlay
Manufacturing Co. Ltd. Energy and Power 29969.87 50861.74
Benxi New Industrial Development
Co. Ltd. Energy and Power 340823.18 224031.67
Benxi New Industrial Development Other Service
Co. Ltd. Income 2375.66
Benxi New Industrial Development
Co. Ltd. Rental Income 24500.00
278Bengang Steel Plates Co. Ltd. Annual Report 2025
Related parties Content of relatedtransactions Current period Previous period
Benxi Yuneng Thermal Power Co.Ltd. Energy and Power 65880688.53
Chengdu Xingyun Smart Technology Information
Co. Ltd. Technology 75421.00
Dalian Bolore Steel Pipe Co. Ltd. Steel and SteelProducts 441221.12 10870375.21
Delin Land Port Supply Chain Steel and Steel
Services Co. Ltd Products 3018807232.23 3147395031.01
Guangzhou Ansteel Steel Processing Steel and Steel
Co. Ltd. Products 82030029.56 15100206.27
Liaoning Hengtai Heavy Machinery
Co. Ltd. Testing Fee 4814.15
Liaoning Hengtai Heavy Machinery
Co. Ltd. Energy and Power 697.03
Liaoning Hengtong Metallurgical Scrap Steel Raw
Equipment Manufacturing Co. Ltd. and Auxiliary 26162534.93 29992686.48Materials
Liaoning Hengtong Metallurgical
Equipment Manufacturing Co. Ltd. Testing Fee 155235.85
Liaoning Slag Micro-powder Co.Ltd. Testing Fee 13635.85
Liaoning Lide Internet of Things Co.Ltd. Energy and Power 64442.33
Liaoning Yitong Machinery
Manufacturing Co. Ltd. Testing Fee 1910.38
Pangang Group Jiangyou Great Wall Steel and Steel
Special Steel Co. Ltd. Products 18189214.87 18133959.69
Panzhong Yihong Metal Products Steel and Steel
(Chongqing) Co. Ltd. Products 321469.80
Shenyang Angang International Trade Steel and Steel
Co. Ltd. Products 3671602.72
Tianjin Angang Steel Processing & Steel and Steel
Distribution Co. Ltd. Products 43283195.50 37200677.54
Tianjin Bengang Plate Processing & Steel and Steel
Distribution Co. Ltd. Products 2528483.27
Tianjin Bengang Plate Processing & Other Service
Distribution Co. Ltd. Income 154450.20
Yantai Angang International Trading Steel and Steel
Co. Ltd. Products 1271662.86
Changchun FAW Angang Steel Steel and Steel
Processing & Distribution Co. Ltd. Products 25857484.17 4693047.99
Changchun FAW Angang Steel Logistics and
Processing & Distribution Co. Ltd. Warehousing 2971.66Revenue
China Ordins Group Co. Ltd. Steel and SteelProducts 1012611108.50 2691935623.60
279Bengang Steel Plates Co. Ltd. Annual Report 2025
2. Lease information of related parties
Company as lessor：
Lease income
Type of leasing Lease income of
Lessee of previous
assets current period
period
Factory buildings
Benxi Steel & Iron (Group) Steel & Iron
and ancillary 108980.00
Process and Logistics Co. Ltd.equipment
Factory buildings
Benxi Steel (Group) Machinery
and ancillary 670802.00
Manufacturing Co. Ltd.equipment
Factory buildings
Bengang Group International Economic
and ancillary 1957007.77
and Trade Co. Ltd.equipment
Factory buildings
Benxi New Industrial Development Co.and ancillary 24500.00
Ltd.equipment
Factory buildings
Angang Tendering Co. Ltd. — Benxi
and ancillary 902511.86
Branch
equipment
Factory buildings
Angang Group International Economic &
and ancillary 1882438.68
Trade Co. Ltd. — Benxi Branch
equipment
280Bengang Steel Plates Co. Ltd. Annual Report 2025
Company as the lessee：
Current period Previous period amount
Rental Rental
costs for costs for Variable
short-ter Variable short-ter lease
m leases lease m leases payments
Increase Increase
and payments Interest and not
Leased Asset in Interest in
Lessor Name leases of not included expense leases of included
Type Rent paid right-of- Rent paid expense on right-of-
low-valu in the on lease low-valu in the
use lease liabilities use
e assets measureme liabilities e assets measurem
assets assets
with nt of lease with ent of
simplifie liabilities simplifie lease
d d liabilities
treatment treatment
Land use right
Benxi Steel
7669068.17
& Iron 55277544. 36985912.square meter 55277544.12 37677819.06
(Group) Co. 12 16
Land use right
Ltd.
42920.00
281Bengang Steel Plates Co. Ltd. Annual Report 2025
Current period Previous period amount
Rental Rental
costs for costs for Variable
short-ter Variable short-ter lease
m leases lease m leases payments
Increase Increase
and payments Interest and not
Leased Asset in Interest in
Lessor Name leases of not included expense leases of included
Type Rent paid right-of- Rent paid expense on right-of-
low-valu in the on lease low-valu in the
use lease liabilities use
e assets measureme liabilities e assets measurem
assets assets
with nt of lease with ent of
simplifie liabilities simplifie lease
d d liabilities
treatment treatment
square meter
Benxi Steel 2300 Hot
& Iron rolling product 16098161. 6603587.3
16098161.046968900.84
(Group) Co. line related 04 1
Ltd. real estate
Benxi 1780 Hot 14351637. 5085711.9
14351637.725367055.84
Beiying Steel rolling product 72 0
282Bengang Steel Plates Co. Ltd. Annual Report 2025
Current period Previous period amount
Rental Rental
costs for costs for Variable
short-ter Variable short-ter lease
m leases lease m leases payments
Increase Increase
and payments Interest and not
Leased Asset in Interest in
Lessor Name leases of not included expense leases of included
Type Rent paid right-of- Rent paid expense on right-of-
low-valu in the on lease low-valu in the
use lease liabilities use
e assets measureme liabilities e assets measurem
assets assets
with nt of lease with ent of
simplifie liabilities simplifie lease
d d liabilities
treatment treatment
& Iron line related
(Group) Co. real estate
Ltd.Bengang Land use right
9945423.11430095.1
Group Co. 728282.30 9945423.12 1757731.16
23
Ltd. square meter
Angang Machinery and 10499986. 3757252.2 7418960.00 6474538.06 255128
283Bengang Steel Plates Co. Ltd. Annual Report 2025
Current period Previous period amount
Rental Rental
costs for costs for Variable
short-ter Variable short-ter lease
m leases lease m leases payments
Increase Increase
and payments Interest and not
Leased Asset in Interest in
Lessor Name leases of not included expense leases of included
Type Rent paid right-of- Rent paid expense on right-of-
low-valu in the on lease low-valu in the
use lease liabilities use
e assets measureme liabilities e assets measurem
assets assets
with nt of lease with ent of
simplifie liabilities simplifie lease
d d liabilities
treatment treatment
Group equipment 01 7 489.65
Energy-Savin
g Technology
Services Co.Ltd.Benxi New 120000.0
Land Lease
Business 0
284Bengang Steel Plates Co. Ltd. Annual Report 2025
Current period Previous period amount
Rental Rental
costs for costs for Variable
short-ter Variable short-ter lease
m leases lease m leases payments
Increase Increase
and payments Interest and not
Leased Asset in Interest in
Lessor Name leases of not included expense leases of included
Type Rent paid right-of- Rent paid expense on right-of-
low-valu in the on lease low-valu in the
use lease liabilities use
e assets measureme liabilities e assets measurem
assets assets
with nt of lease with ent of
simplifie liabilities simplifie lease
d d liabilities
treatment treatment
Development
Co. Ltd.Benxi Iron &
Steel (Group) Transport 1528857
Construction Equipment 3.67
Co. Ltd.Benxi Iron & Transport 418680.0 299057.1
285Bengang Steel Plates Co. Ltd. Annual Report 2025
Current period Previous period amount
Rental Rental
costs for costs for Variable
short-ter Variable short-ter lease
m leases lease m leases payments
Increase Increase
and payments Interest and not
Leased Asset in Interest in
Lessor Name leases of not included expense leases of included
Type Rent paid right-of- Rent paid expense on right-of-
low-valu in the on lease low-valu in the
use lease liabilities use
e assets measureme liabilities e assets measurem
assets assets
with nt of lease with ent of
simplifie liabilities simplifie lease
d d liabilities
treatment treatment
Steel (Group) Equipment 0 4
Machinery
Manufacturin
g Co. Ltd.Benxi
Machinery and 61062500. 4907391.2 934741
Yuneng
Equipment 00 5 189.81
Thermal
286Bengang Steel Plates Co. Ltd. Annual Report 2025
Current period Previous period amount
Rental Rental
costs for costs for Variable
short-ter Variable short-ter lease
m leases lease m leases payments
Increase Increase
and payments Interest and not
Leased Asset in Interest in
Lessor Name leases of not included expense leases of included
Type Rent paid right-of- Rent paid expense on right-of-
low-valu in the on lease low-valu in the
use lease liabilities use
e assets measureme liabilities e assets measurem
assets assets
with nt of lease with ent of
simplifie liabilities simplifie lease
d d liabilities
treatment treatment
Power Co.Ltd.Anzi
(Tianjin)
Machinery and 6790154.Financial
Equipment 51
Leasing Co.Ltd.
287Bengang Steel Plates Co. Ltd. Annual Report 2025
3. Remuneration of key management personnel
Units: in 10 thousand
Items Current period Previous period
Remuneration of key management
240.44402.56
personnel
Other Notes: For 2024 Key Management Personnel comprised Senior
Management Directors and Supervisors; for 2025 Key Management Personnel
comprise Senior Management and Directors. In accordance with the 2025
disclosure requirements the remuneration for Key Management Personnel in the
preceding year amounted to RMB 3.11 million.
（6） Receivables and payables of the related parties
1. Receivables of the company
2025/12/312024/12/31
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Angang Steel
Accounts Processing and
receivable Distribution 4103076.87 41030.77 17280685.82 172806.86
(Dalian) Co. Ltd.
Accounts Ansteel Steel
receivable Distribution 343341.92 343341.92(Wuhan) Co. Ltd.Accounts Angang Steel
receivable Company Limited 519491.94 5194.92
Angang Group
Accounts Engineering &
receivable Technology Co. 68421.86 684.22 23232.88 232.33
Ltd.Angang Group
Accounts International
receivable Economic & Trade 663734937.01 6637349.37Co. Ltd. — Benxi
Branch
Angang Green
Accounts Resources
receivable Technology Co. 320787.24 3207.87
Ltd.Accounts Angang Energy
receivable Technology Co. 3911318.52 39113.19Ltd.Accounts Ansteel Water
receivable Technology 9476960.09 94769.60(Liaoning) Co. Ltd.Bengang Group
Accounts International
receivable Economic and 253981286.94 2539812.87
Trade Co. Ltd.Accounts Bengang
receivable Automotive 5425.66 54.26Transport Co. Ltd.Accounts Benxi Northern Iron
receivable Industry Co. Ltd. 20750535.50 207505.36 8268156.18 82681.56
288Bengang Steel Plates Co. Ltd. Annual Report 2025
2025/12/312024/12/31
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Accounts Benxi Beifang Steel
receivable Rolling Co.Ltd. 1475226.11 14752.26
Accounts Benxi Beiying Iron
receivable and Steel (Group) 19945828.68 199458.29 143872.00 1438.72Co. LTD
Accounts Benxi Dongfenghu
receivable Steel Resource 333779.18 3337.79 454258.02 4542.58Utilization Co. Ltd.Benxi Iron and
Accounts Steel (Group)
receivable Machinery 3398120.05 33981.20Manufacturing Co.LTD
Benxi Iron and
Accounts Steel (Group)
receivable Construction Co. 594714.68 59576.37 1389266.64 39345.19
Ltd
Benxi Iron and
Steel (Group)
Accounts Mining
receivable Construction 596201.51 155166.81 607729.23 63193.36
Engineering Co.Ltd.Benxi Iron & Steel
Accounts (Group) Mining &
receivable Mineral Resources 88983.85 17796.77 88983.85 8898.39Development Co.Ltd.Benxi Steel Group
Accounts Mining Liaoyang
receivable Jiajiaopu Iron Mine 299118.20 2991.18 16557.90 165.58
Co. Ltd.Benxi Steel Group
Accounts Mining Liaoyang
receivable Ma'erling 3739637.59 37396.38 921521.39 67911.03
Pelletizing Co. Ltd.Benxi Iron and
Accounts Steel (Group)
receivable Mining Yanjia 36864.00 368.64 13714.00 137.14Valley Limestone
Mine Co. Ltd.Accounts Benxi Iron and
receivable Steel (Group) 14459984.49 144599.84 2184958.74 21849.59Mining Co. LTD
Benxi Iron and
Accounts Steel (Group)
receivable Thermal Power 7474879.91 74748.80 6744686.82 246075.39Development Co.Ltd.Benxi Iron and
Accounts Steel (Group)
receivable Equipment 439269.47 37697.79 1903696.41 39634.20Engineering Co.LTD
Benxi Iron and
Accounts Steel (Group)
receivable Industrial 5815109.99 58151.10 6964699.57 69647.00Development Co.LTD
289Bengang Steel Plates Co. Ltd. Annual Report 2025
2025/12/312024/12/31
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Benxi Steel Group
Accounts Information
receivable Automation Co. 561.58 5.62
Ltd.Accounts Benxi Iron and
receivable Steel (Group) Co. 197118.63 1971.19 1700740.58 17007.41LTD
Benxi Xihu
Accounts Metallurgical
receivable Furnace Material 34893.27 348.93 49833.00 498.33
Co. Ltd.Benxi Weld
Accounts Phosphate Overlay
receivable Manufacturing Co. 190148.59 8558.50
Ltd.Benxi New
Accounts Industrial
receivable Development Co. 63782.37 637.82
Ltd.Accounts Guangzhou Ansteel
receivable Steel Processing 3200080.63 32000.81Co. Ltd.Liaoning Hengtong
Accounts Metallurgical
receivable Equipment 54010.30 540.1Manufacturing Co.Ltd.Accounts Liaoning Slag
receivable Micro-powder Co. 12848.00 128.48Ltd.Accounts Liaoning Lide
receivable Internet of Things 12039.75 120.4Co. Ltd.Pangang Group
Accounts Jiangyou Great
receivable Wall Special Steel 5423048.21 54230.48 5864196.39 58641.96
Co. Ltd.MCC South
Accounts Engineering &
receivable Technology Co. 9813.70 9813.70
Ltd.Angang Steel
Prepayments Processing andDistribution 317756.00
(Dalian) Co. Ltd.
Angang Steel
Processing and
Prepayments Distribution 14245.92 663.59
(Changchun) Co.
Ltd.Prepayments Angang SteelCompany Limited 561163.77 484808.79
Angang Group
Prepayments InternationalEconomic & 35372892.55 0.01
Trading Co. Ltd.Angang Group
International
Prepayments Economic & Trade 44117532.53
Co. Ltd. — Benxi
Branch
290Bengang Steel Plates Co. Ltd. Annual Report 2025
2025/12/312024/12/31
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Benxi Beiying Iron
Prepayments and Steel (Group) 29562250.68 4874319.39
Co. LTD
Benxi Iron and
Steel (Group)
Prepayments Machinery 318579.31
Manufacturing Co.LTD
Benxi Iron and
Steel (Group)
Prepayments Equipment 3245781.89 3162173.15
Engineering Co.LTD
Benxi Steel Group
Prepayments InformationAutomation Co. 581838.17 575313.17
Ltd.Benxi New
Prepayments IndustrialDevelopment Co. 6867713.50 7196737.50
Ltd.Other Angang Steel
receivables Company Limited 95781.27 55603.99 95781.27 50581.83
Other Ansteel Group Co.receivables Ltd 6706.00 670.6 13906.00 139.06
Other Bengang Stainless
receivables Steel Cold Rolling 84855.74 8485.57 1030000.00 10300.00Dandong Co. Ltd.Other Ben Steel Group
receivables Co. Ltd 0.06
Benxi Iron and
Other Steel (Group)
receivables Construction Co. 250679.61 250679.61 250679.61 250679.61
Ltd
Other Benxi Iron and
receivables Steel (Group) Co. 2674500.00 413000.00 2674500.00 157740.00LTD
Benxi Gaoxin
Other Drilling Tools
receivables Manufacturing Co. 10800.00 10800.00
Ltd.Other Liaoning Lide
receivables Internet of Things 1881016.00 18810.16Co. Ltd.Other Angang Group
non-current Engineering &Technology Co. 1968632.21assets Ltd.Angang Group
Other International
non-current Economic & Trade 8213719.14
assets Co. Ltd. — Benxi
Branch
Other Bengang Gaoyuan
non-current IndustrialDevelopment Co. 542400.00assets Ltd.Other Benxi Iron and
non-current Steel (Group)
assets Construction Co.
19602615.3319936615.33
Ltd
291Bengang Steel Plates Co. Ltd. Annual Report 2025
2025/12/312024/12/31
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Benxi Iron and
Other Steel (Group)
non-current Mining
assets Construction
2210879.803102019.08
Engineering Co.Ltd.Benxi Iron and
Other Steel (Group)
non-current Equipment 11975916.33 12686042.92
assets Engineering Co.LTD
Benxi Iron and
Other Steel (Group)
non-current Industrial 562392.14 562392.14
assets Development Co.LTD
Other Benxi Steel Group
non-current Information
assets Automation Co.
647592.467692252.35
Ltd.Other Liaoning Hengtai
non-current Heavy Machinery 37496.00 5895416.00
assets Co. Ltd.
2. Payables of the company
Items Related party 2025/12/31 2024/12/31
Account payables Angang Electrical Co. Ltd. 542993.20 63861.90
Account payables Angang Scrap Resources(Anshan) Co. Ltd. 2018855.66 90856997.04
Angang Steel Processing &
Account payables Distribution (Changchun) Co. 103452.29 108462.46
Ltd.Account payables Angang Steel Rope Co. Ltd. 535865.47
Account payables Angang Steel Company Limited 417943.15 417943.09
Ansteel Group Railway
Account payables Equipment Checking & Repairing 248392.08
Company
Account payables Angang Group EngineeringTechnology Co. Ltd. 221880.02 85440.00
Account payables Angang Group InternationalEconomic & Trade Co. Ltd. 42087343.55 193806.42
Account payables Angang Group MiningGongchangling Co. Ltd. 116768098.39 774734.40
Account payables Angang Mining Construction Co.Ltd. 3244303.87
Account payables Angang Mining AutomotiveTransportation Co. Ltd. 324680.50
Account payables Angang Green ResourcesTechnology Co. Ltd. 1525088.24
Account payables Angang Energy Technology Co.Ltd. 296477.37
292Bengang Steel Plates Co. Ltd. Annual Report 2025
Items Related party 2025/12/31 2024/12/31
Account payables Ansteel AutomobileTransportation Co. Ltd. 4409095.38
Angang Industrial Group
Account payables (Anshan) Equipment Operation &
Maintenance Co. Ltd.Angang Industrial Group
Account payables Metallurgical Machinery Co. 3701643.08 3048409.40
Ltd.Account payables Ansteel Shuangsheng (Anshan)Fan Co. Ltd 24295.00
Account payables Ansteel Water Technology(Liaoning) Co. Ltd. 33650652.24
Account payables Angang Heavy Machinery Co.Ltd. 1760278.00 2480080.39
Anshan Iron & Steel
Account payables Metallurgical Furnace Material 524299.30 2641730.70
Technology Co. Ltd.Account payables Anshan Jianbo EngineeringTesting Co. Ltd. 187620.00
Account payables Bengang Stainless Steel ColdRolling Dandong Co. Ltd. 109338.10
Account payables Bengang Electrical Co. Ltd. 6089528.32 2692262.89
Account payables Bengang Gaoyuan IndustrialDevelopment Co. Ltd. 878009.43 3969044.08
Account payables Bengang Group DalianRefractory Materials Co. Ltd 1007742.98 1487446.42
Account payables Bengang Group InternationalEconomic and Trade Co. Ltd. 55290633.89 50692605.67
Account payables Bengang Group Co. Ltd. 4688239.05 4688239.05
Account payables Bengang Automotive TransportCo. Ltd. 7781443.76
Account payables Benxi Aike Hydraulic SealingCo. Ltd. 1854069.53 2778115.83
Account payables Benxi Northern Iron Industry Co.Ltd. 154811.36 73671.74
Account payables Benxi Beiying Iron and Steel(Group) Co. Ltd. 1722301.48 79183767.61
Account payables Benxi Dongfenghu SteelResource Utilization Co. Ltd. 1738248.20 2794117.30
Benxi Iron and Steel (Group)
Account payables Real Estate Development Co. 89735.06 89735.06
Ltd.Benxi Iron and Steel (Group)
Account payables Engineering Construction 97970.00
Supervision Co. Ltd.Account payables Benxi Steel and Iron(Group)Tengda Co. Ltd. 61267825.22 46335396.72
Benxi Iron and Steel (Group)
Account payables Machinery Manufacturing Co. 41328266.38 10659752.69
Ltd.Benxi Iron & Steel (Group)
Account payables Construction Advanced 264705.62 264705.62
Decoration Co. Ltd.
293Bengang Steel Plates Co. Ltd. Annual Report 2025
Items Related party 2025/12/31 2024/12/31
Account payables Benxi Iron and Steel (Group)Construction Co. Ltd. 30611624.28 29543424.37
Benxi Iron and Steel (Group)
Account payables Mining Construction Engineering 11074458.13 12083876.39
Co. Ltd.Benxi Steel Group Mining
Account payables Liaoyang Jiajiaopu Iron Mine 29642.17
Co. Ltd.Benxi Steel Group Mining
Account payables Liaoyang Ma'erling Pelletizing 4166130.41 10282360.99
Co. Ltd.Account payables Benxi Iron and Steel (Group)Mining Co. Ltd. 116498925.34 59008517.39
Benxi Iron and Steel (Group)
Account payables Thermal Power Development Co. 200647.49 12362.40
Ltd.Account payables Benxi Steel Group EquipmentEngineering Co. Ltd. 176946939.95 92630122.46
Account payables Benxi Steel Group IndustrialDevelopment Co. Ltd. 45976044.04 53022441.36
Account payables Benxi Steel Group InformationAutomation Co. Ltd. 27951632.92 23459353.69
Account payables Benxi Iron and Steel (Group) Co.LTD 19131787.26 28808379.76
Account payables Benxi Gaoxin Drilling ToolsManufacturing Co. Ltd. 0.03
Account payables Benxi Xihu Metallurgical FurnaceMaterial Co. Ltd. 26922238.21 17171380.52
Account payables Benxi Weld Phosphate OverlayManufacturing Co. Ltd. 37542.84 234112.13
Account payables Benxi New IndustrialDevelopment Co. Ltd. 2564586.37 38700.00
Account payables Benxi Yuneng Thermal PowerCo. Ltd. 57929876.17
Account payables Dalian Bolore Steel Pipe Co. Ltd. 1007742.98
Account payables Delin Industrial Products Co. Ltd 32478323.08 11409283.88
Account payables Delin Land Port Supply ChainServices Co. Ltd 542696.24 7713.30
Account payables Heilongjiang Longmei MiningGroup Co. Ltd. 6165.02
Account payables Hongda Engineering Technology(Liaoning) Co. Ltd.Account payables Liaoning Hengtai HeavyMachinery Co. Ltd. 13525100.18 13479975.49
Liaoning Hengtong Metallurgical
Account payables Equipment Manufacturing Co. 14245092.81 7166704.73
Ltd.Account payables Liaoning Lide Internet of ThingsCo. Ltd. 14876486.42 7230457.06
Account payables Liaoning MetallurgicalVocational Technical College 341428.00 517768.00
Account payables Liaoning Yitong MachineryManufacturing Co. Ltd. 7836142.40 4599719.45
294Bengang Steel Plates Co. Ltd. Annual Report 2025
Items Related party 2025/12/31 2024/12/31
Account payables Lingyuan Iron & Steel Group Co.Ltd. 158290.35
Account payables Shanxi Materials InternationalEnergy Co. Ltd.Account payables Shenyang Angang InternationalTrade Co. Ltd. 52157190.42
Account payables Shenyang Xiangyu NewMaterials Technology Co. Ltd. 5321326.65
Account payables Tianjin Bengang Plate Processing& Distribution Co. Ltd. 487.99
Other payables Angang (Liaoning) MaterialsTechnology Co. Ltd. 231080.00 300000.00
Other payables Angang Scrap Resources(Anshan) Co. Ltd. 500000.00 500000.00
Angang Engineering Production
Other payables Operations & Maintenance 10000.00
(Anshan) Co. Ltd.
Other payables Angang Group EngineeringTechnology Co. Ltd. 328323471.32 114249580.71
Other payables Angang Group InternationalEconomic & Trade Co. Ltd. 19873739.81
Other payables Angang Group Automation Co.Ltd. 14175000.00 7332129.00
Other payables Angang Construction Group Co.Ltd. 63085702.32 3319522.94
Other payables Angang Metal Structure Co. Ltd. 10000.00
Other payables Angang Heavy Machinery Design& Research Institute Co. Ltd. 826121.54 826121.54
Other payables Angang Heavy Machinery Co.Ltd. 1040012.56 1040012.56
Other payables Anshan Angang InternationalTravel Agency Co. Ltd. 1175.00
Anshan Iron & Steel
Other payables Metallurgical Furnace Material 50000.00 50000.00
Technology Co. Ltd.Other payables Anshan Jianbo EngineeringTesting Co. Ltd. 21200.00
Other payables Beijing ZhongliangangE-commerce Co. Ltd. 10000.00
Other payables Bengang Electrical Co. Ltd. 4436730.79 776394.34
Other payables Bengang Gaoyuan IndustrialDevelopment Co. Ltd. 6264369.57 5005617.56
Other payables Bengang Group DalianRefractory Materials Co. Ltd 20000.00
Other payables Bengang Group InternationalEconomic and Trade Co. Ltd. 74855543.30 66120363.96
Other payables Bengang Group Co. Ltd. 205343448.25 264897561.47
Other payables Bengang Automotive TransportCo. Ltd. 1141388.25
Other payables Benxi Aike Hydraulic SealingCo. Ltd. 58590.00 58590.00
Other payables Benxi Beiying Iron and Steel(Group) Co. Ltd. 7282312.51 7766352.17
295Bengang Steel Plates Co. Ltd. Annual Report 2025
Items Related party 2025/12/31 2024/12/31
Other payables Benxi Dongfenghu SteelResource Utilization Co. Ltd. 210000.00 210000.00
Benxi Iron and Steel (Group)
Other payables Engineering Construction 4357143.03 1488917.43
Supervision Co. Ltd.Benxi Iron and Steel (Group)
Other payables Machinery Manufacturing Co. 47825817.72 3792085.01
Ltd.Other payables Benxi Iron & Steel (Group)Inspection & Testing Co. Ltd. 735280.00
Benxi Iron & Steel (Group)
Other payables Construction Advanced 103738.55 123738.55
Decoration Co. Ltd.Other payables Benxi Iron and Steel (Group)Construction Co. Ltd. 280668215.31 217077997.48
Benxi Iron and Steel (Group)
Other payables Mining Construction Engineering 6975860.52 7550015.30
Co. Ltd.Benxi Iron & Steel (Group) Road
Other payables & Bridge Construction 318.66
Engineering Co. Ltd.Benxi Iron and Steel (Group)
Other payables Thermal Power Development Co. 5939555.04 697337.92
Ltd.Other payables Benxi Steel Group EquipmentEngineering Co. Ltd. 578263720.60 724514695.24
Other payables Benxi Steel Group IndustrialDevelopment Co. Ltd. 3444007.73 1412218.05
Other payables Benxi Steel Group InformationAutomation Co. Ltd. 238531102.78 108472109.63
Other payables Benxi Iron and Steel (Group) Co.LTD 40544440.05 52720523.82
Other payables Benxi Xihu Metallurgical FurnaceMaterial Co. Ltd. 100000.00 100000.00
Other payables Benxi New IndustrialDevelopment Co. Ltd. 6849133.66 13997378.10
Other payables Dalian Bolore Steel Pipe Co. Ltd. 20000.00
Other payables Delin Industrial Products Co. Ltd 10359.99
Other payables Delin Land Port Supply ChainServices Co. Ltd 1250000.00
Other payables Hongda Engineering Technology(Liaoning) Co. Ltd. 1479.36
Other payables Liaoning Hengtai HeavyMachinery Co. Ltd. 8943894.94 5024204.94
Other payables ? Liaoning Hengyi Steel TradeCo. Ltd. 11758998.02 11758998.02
Other payables Liaoning MetallurgicalTechnician College 20561.00 0.01
Other payables Liaoning MetallurgicalVocational Technical College 390110.00 353630.00
Other payables Liaoning Yitong MachineryManufacturing Co. Ltd. 372123.61 330463.37
296Bengang Steel Plates Co. Ltd. Annual Report 2025
Items Related party 2025/12/31 2024/12/31
Other payables Pangang Group EngineeringTechnology Consulting Co. Ltd. 517972.47
Changchun FAW Angang Steel
Other payables Processing & Distribution Co. 7500.00
Ltd.Other payables MCC Northern Engineering &Technology Co. Ltd. 200000.00
Other payables MCC South Engineering &Technology Co. Ltd. 8826046.90
Other payables MCC-CEI EngineeringTechnology Co. Ltd. 393250.01
Contract liabilities Angang (Hangzhou) AutomotiveMaterials Technology Co. Ltd. 2025506.35 644589.93
Contract liabilities Angang Steel Processing &Distribution (Dalian) Co. Ltd. 1018.12
Angang Steel Processing &
Contract liabilities Distribution (Changchun) Co. 427186.59 2826567.07
Ltd.Angang Steel Processing &
Contract liabilities Distribution (Zhengzhou) Co. 243332.37
Ltd.Contract liabilities Angang Steel Distribution (Hefei)Co. Ltd. 1889663.02 3099204.80
Contract liabilities Angang Steel Distribution(Wuhan) Co. Ltd. 717523.80 731023.72
Contract liabilities Angang Steel Company Limited 248811.04 675535.16
Contract liabilities Angang Chemical TechnologyCo. Ltd. 12924085.33 10758548.27
Contract liabilities Angang Group InternationalEconomic & Trade Co. Ltd. 1671004.51 649732.04
Contract liabilities Angang Mining MachineryManufacturing Co. Ltd. 136.07 354001.32
Contract liabilities Angang Green ResourcesTechnology Co. Ltd. 477418.26
Contract liabilities Angang Energy Technology Co.Ltd. 0.02
Contract liabilities Angang ShenYang Steel ServiceCenter Co. Ltd. 87869.94
Angang Industrial Group
Contract liabilities Metallurgical Machinery Co. 12992.52
Ltd.Contract liabilities Bengang Group DalianRefractory Materials Co. Ltd 798522.40 4203125.16
Contract liabilities Bengang Group InternationalEconomic and Trade Co. Ltd. 9843810.08
Contract liabilities Benxi Beiying Iron and Steel(Group) Co. Ltd. 8495254.41 6329389.09
Contract liabilities Benxi Dongfenghu SteelResource Utilization Co. Ltd. 4038112.95 4881014.65
Contract liabilities Benxi Steel and Iron(Group)Tengda Co. Ltd. 190255.10
Benxi Iron and Steel (Group)
Contract liabilities Machinery Manufacturing Co. 1035651.33 5552.80
Ltd.Contract liabilities Benxi Iron and Steel (Group)Construction Co. Ltd. 39135.82 39135.82
297Bengang Steel Plates Co. Ltd. Annual Report 2025
Items Related party 2025/12/31 2024/12/31
Contract liabilities Benxi Iron and Steel (Group)Mining Co. Ltd. 4135552.29 510246.41
Benxi Iron and Steel (Group)
Contract liabilities Thermal Power Development Co. 49.23 8620006.55
Ltd.Contract liabilities Benxi Steel Group IndustrialDevelopment Co. Ltd. 8514062.43 10393122.80
Contract liabilities Benxi Iron & Steel (Group)Metallurgical Slag Co. Ltd. 0.01
Contract liabilities Benxi Xihu Metallurgical FurnaceMaterial Co. Ltd. 20000.00 20000.00
Contract liabilities Dalian Bolore Steel Pipe Co. Ltd. 3191247.16
Contract liabilities Delin Land Port Supply ChainServices Co. Ltd 520753057.71 305864435.81
Contract liabilities Guangzhou Angang SteelProcessing Co. Ltd. 500000.00
Liaoning Hengtong Metallurgical
Contract liabilities Equipment Manufacturing Co. 5064025.37 3278592.93
Ltd.Contract liabilities Liaoning MetallurgicalVocational Technical College 0.01
Contract liabilities Panzhong Yihong Metal Products(Chongqing) Co. Ltd. 22203.73
Contract liabilities Shenyang Angang InternationalTrade Co. Ltd. 77077.62
Contract liabilities Tianjin Angang Steel Processing& Distribution Co. Ltd. 1619646.79 4824582.32
Contract liabilities Tianjin Bengang Plate Processing& Distribution Co. Ltd. 6576579.15
Changchun FAW Angang Steel
Contract liabilities Processing & Distribution Co. 5486624.22 8200175.36
Ltd.Contract liabilities China Ordins Group Co. Ltd. 151750367.82 236678427.35
（7） Centralized Fund Management
1. The key elements of the centralized capital management arrangements in which
the Company participates and operates are as follows:
In December 2021 after negotiation with Anshan Iron & Steel Group Finance CompanyLimited (hereinafter referred to as Anshan Iron & Steel Finance Company) the “FinancialServices Agreement (Years 2022-2024)” was entered into in order to agree on the terms of the
relevant financial business and the upper limit of the amount of the relevant transactions
between the Company and its subsidiaries and Anshan Iron & Steel Finance Company for the
years 2022 2023 and 2024. The agreement stipulates that in the next twelve months the
maximum daily deposit balance of the Company and its holding subsidiaries with Anshan
Iron & Steel Finance Company will be RMB4.5 billion the maximum credit limit of loans
298Bengang Steel Plates Co. Ltd. Annual Report 2025
bills and other forms of credit will be RMB5.0 billion and the maximum entrusted loan to be
provided by Anshan Iron & Steel Finance Company to the Company will be RMB2.0 billion.In December 2024 after negotiation with Anshan Iron & Steel Group Finance CompanyLimited (hereinafter referred to as Anshan Iron & Steel Finance Company) the “FinancialServices Agreement (Years 2025-2027)” was entered into in order to agree on the terms of the
relevant financial business and the upper limit of the amount of the relevant transactions
between the Company and its subsidiaries and Anshan Iron & Steel Finance Company for the
years 2025 2026 and 2027. The agreement stipulates that the maximum daily balance of
funds deposited by Bengang Plates in Angang Financial Company for settlement shall not
exceed RMB 4.5 billion each year and the interest generated by the deposits shall not exceed
RMB 100 million per year; the amount of loans bills and other forms of credit provided by
Angang Financial Company to Bengang Plates shall not exceed RMB 5 billion each year and
the loan interest shall not exceed RMB 250 million per year; the amount of entrusted loans
provided by Angang Financial Company to Bengang Plate Group shall not exceed RMB 2
billion each year and the entrusted loan interest shall not exceed RMB 100 million per year.
2. Funds pooled by the Company to the Group
Funds deposited directly into finance companies by the Company without being pooled into
the accounts of the Group's parent company
2025/12/312024/12/31
Items Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Cash at bank and on
194746442.771227198770.48
hand
Total 194746442.77 1227198770.48
Including: funds
restricted due to
centralized
management of funds
299Bengang Steel Plates Co. Ltd. Annual Report 2025
13. Commitments and Contingencies
（1） Significant Commitments
1. Significant Commitments Existing at the Balance Sheet Date
(1) According to the Land Use Rights Lease Agreement signed between the Company and
Benxi Steel (Group) Co. Ltd. on April 7 1997 December 30 2005 and subsequent
supplementary agreements the Company leases land from Bengang Group at a rate of
0.594 yuan per square meter per month with a lease term of 45 years. The total leased
land area is 7669068.17 square meters with an annual rent of 54.67 million yuan.
(2) On August 14 2019 the Company signed the Building Lease Agreements with Benxi
Steel (Group) Co. Ltd. and Benxi Beiying Steel (Group) Co. Ltd. leasing the buildings
and auxiliary facilities occupied by the 2300 hot rolling mill production line and the 1780
hot rolling mill production line respectively. The lease term extends until December 31
2038. The lease fee is determined based on the depreciation of the original building value
and national surtaxes plus a reasonable profit margin through negotiation. The estimated
maximum annual rent shall not exceed 20 million yuan for the 2300 hot rolling mill and 18
million yuan for the 1780 hot rolling mill. The rent is settled and paid on a monthly basis.This related-party transaction has been reviewed and approved by the Company’ s 8th
Board of Directors at its 4th meeting.
(3) On July 15 2019 the Company signed Land Lease Agreements with Benxi Steel
(Group) Co. Ltd. and Bengang Group leasing a total of eight plots of land from both
companies. The leased land areas are 42920.00 square meters and 728282.30 square
meters respectively. The lease term is 20 years with a rental price of 1.138 yuan per
square meter per month. After the agreement takes effect every five years an evaluation
will be conducted based on national laws and policies and the pricing principles stipulated
in Article 2 of the agreement to determine whether the rent needs to be adjusted. This
related-party transaction has been reviewed and approved by the Company’s 8th Board of
Directors at its 3rd meeting.
(4) As of December 31 2025 the amount of irrevocable letters of credit yet to be fulfilled
is RMB 1.14 billion yuan.
（2） Contingencies
As of December 31 2025 the Company has no significant contingent matters that require
disclosure.
300Bengang Steel Plates Co. Ltd. Annual Report 2025
14. Subsequent events
On March 20 2026 Bengang Steel Plates Co. Ltd. issued the "Progress Announcement on
Major Asset Exchange and Related-Party Transaction." The Company plans to conduct an
asset exchange with its controlling shareholder Benxi Steel (Group) Co. Ltd. The proposed
acquired asset is 100% equity interest in Benxi Steel & Iron (Group) Mining Co. Ltd. The
proposed disposed assets include all assets and liabilities of the listed company except for the
retained assets and liabilities. Any difference in value between the acquired and disposed
assets will be settled in cash by one party to the other. At present the specific scope of the
transaction assets transaction price and other key elements have not been finalized. No
agreement has been signed between the parties and the transaction plan requires further
evaluation discussion and negotiation. Additionally the transaction must undergo necessary
decision-making and approval procedures in accordance with relevant laws regulations and
the Company's Articles of Association. Therefore there remains significant uncertainty
regarding this transaction.
15. Other significant events
（1） Correction of previous accounting errors
1. Retrospective Restatement Method
No prior period accounting errors were corrected using the retrospective restatement
method during this reporting period.
2. Prospective Application Method
No prior period accounting errors were corrected using the prospective application method
during this reporting period.
301Bengang Steel Plates Co. Ltd. Annual Report 2025
（2） Significant Debt Restructuring
Original Fair Value
Recognized Increase in Share Increase in Percentage
Debt Carrying Contingent Determination
Gain/Loss on Capital Due to Investment Due of Debtor's
Items Restructuring Amount of Payable/Rece Method and
Debt Debt-to-Equity to Debt-to-Equity Total Equity
Method Restructured ivable Basis in Debt
Restructuring Conversion Conversion (%)
Debt Restructuring
Settlement of
debt with cash
Accounts
lower than the 561404751.93 17512835.36
Payable
carrying amount
of the debt
Total 561404751.93 17512835.36
302Bengang Steel Plates Co. Ltd. Annual Report 2025
（3） Segment information
Due to the fact that the Company's main product is steel with other products accounting
for a smaller proportion of sales and the primary production base being located in the
Liaoning region it is not applicable to disclose segment reporting.
16. Notes to the financial statements of parent company
1. Accounts receivable
(1) Accounts receivable disclosed by aging
Items 2025/12/31 2024/12/31
Within 1 year (inclusive) 936430278.56 775949268.73
1-2 years (inclusive) 121705680.10 5786445.58
2-3 years (inclusive) 2911370.99 126254788.19
3-4 years (inclusive) 125547627.17 557413.41
4-5 years (inclusive) 556497.21 748799.87
Over 5 years 97287740.83 97491074.53
subtotal 1284439194.86 1006787790.31
less：bad debt 130549967.32 107374488.69
Total: 1153889227.54 899413301.62
303Bengang Steel Plates Co. Ltd. Annual Report 2025
(2) Accounts receivable disclosed by method of bad debt provision
2025/12/312024/12/31
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Items Provision Provision
Percentage Book value Percentage Book value
Amount Amount Percentage Amount Amount Percentage
(%)(%)
(%)(%)
Provision
assessed 48196244.68 3.75 48196244.68 100.00 48196244.68 4.79 48196244.68 100.00
individually
Provision
assessed by
grouping 1236242950.18 96.25 82353722.64 6.66 1153889227.54 958591545.63 95.21 59178244.01 6.17 899413301.62
credit risk
characteristics
Including: By
Aging 1004714745.30 78.22 82353722.64 8.20 922361022.66 313614474.73 31.15 59178244.01 18.87 254436230.72
portfolio
By Risk-free
231528204.8818.03231528204.88644977070.9064.06644977070.90
portfolio
Total 1284439194.86 100.00 130549967.32 1153889227.54 1006787790.31 100.00 107374488.69 899413301.62
304Bengang Steel Plates Co. Ltd. Annual Report 2025
Significant Provision for bad debts assessed individually：
2025/12/312024/12/31
Bad
Item Accounts Provision for debts Basis for Accounts Provision for
receivable bad debts ratio receivable bad debts（% provision）
Benxi Nanfen
Xinhe Ceased
48196244.6848196244.68100.0048196244.6848196244.68
Metallurgical production
Co. Ltd.Total 48196244.68 48196244.68 48196244.68 48196244.68
Accounts receivable tested for impairment by portfolio:
Risk-free portfolio
2025/12/31
Item
Carrying amount Provision for bad debts Bad debts ratio (%)
Risk-free portfolio 231528204.88
Total 231528204.88
Aging portfolio
2025/12/31
Items
Carrying amount Provision for bad debts Bad debts ratio (%)
Within 1 year
890620002.618906200.031.00
(Inclusive)
1-2 years
42575692.544257569.2510.00
(Inclusive)
2-3 years
2911370.99582274.2020.00
(Inclusive)
3-4 years
27852241.3227852241.32100.00
(Inclusive)
4-5 years 556497.21 556497.21 100.00
305Bengang Steel Plates Co. Ltd. Annual Report 2025
2025/12/31
Items
Carrying amount Provision for bad debts Bad debts ratio (%)
(Inclusive)
Over 5 years 40198940.63 40198940.63 100.00
Total 1004714745.30 82353722.64
Provision reversal or recovery of bad debts of current period.Change in the Current Period
Reversal
Items 2024/12/31 Write-off or Other 2025/12/31
Provision or
Cancellation Changes
Recovery
Provision
for
accounts 107374488.69 32903336.61 9727857.98 130549967.32
receivable
bad debts
Total 107374488.69 32903336.61 9727857.98 130549967.32
(3) Accounts Receivable Written Off in the Current Period
Item Write-off Amount
Accounts Receivable Written Off 9727857.98
(4) Top five debtors based on accounts receivable and contract assets at the
year-end
306Bengang Steel Plates Co. Ltd. Annual Report 2025
Provision for
Percentage of
Accounts doubtful debts
Accounts Contract total
Receivable and for Accounts
Receivable Asset Accounts
Company Contract Asset Receivable
Ending Ending Receivable
Ending and Contract
Balance Balance and Contract
Balance Asset Ending
Asset (%)
Balance
Angang
Group
International
Economic & 624594464.67 624594464.67 48.63 6245944.65
Trade Co.Ltd. Benxi
Branch
Benxi
Bengang
172669060.23172669060.2313.44
Steel Sales
Co. Ltd.Taicang
CIMC
Container 60592424.45 60592424.45 4.72 605924.24
Manufacture
Co. Ltd.Liaoning
Northern Coal
Chemical 53085518.70 53085518.70 4.13 4246806.95
(Group) Co.Ltd.Benxi Nanfen
Xinhe
48196244.6848196244.683.7548196244.68
Metallurgical
Co. Ltd.Total 959137712.73 959137712.73 74.67 59294920.52
307Bengang Steel Plates Co. Ltd. Annual Report 2025
2. Other receivables
Items 2025/12/31 2024/12/31
Interest receivable
Dividends receivable 31000000.00 224898383.95
Other receivables 24731976.38 174911279.65
Total 55731976.38 399809663.60
1. Dividends receivable
（1）Breakdown of Dividends receivable
Items（or company） 2025/12/31 202412/31
Bengang Puxiang Cool Rolling Steel
163898383.95
Sheet Co. Ltd.Changchun Bengang Steel Sales Co.
3000000.00
Ltd.Guangzhou Bengang Steel & Iron
31000000.0058000000.00
Trading Co. Ltd.Total 31000000.00 224898383.95
Less: Provision for bad debts
Total 31000000.00 224898383.95
（2）Significant dividend receivable overdue for more than one year
Whether
Reasons for
impairment has
Company Ending Balance Age uncollected
occurred and the
dividends
basis for judgment
Guangzhou Bengang
Retained for
Steel & Iron Trading 31000000.00 1-2 years Not Applicable
operations
Co. Ltd.Total 31000000.00
308Bengang Steel Plates Co. Ltd. Annual Report 2025
2. Other Receivables
(1) Other receivables disclosed by aging
Items 2025/12/31 2024/12/31
Within 1 year (inclusive) 718602.46 57266931.07
1-2 years (inclusive) 1352428.89 89144027.11
2-3 years (inclusive) 1966327.11 13450953.62
3-4 years (inclusive) 12539103.20 31188795.54
4-5 years (inclusive) 24463290.56 842882.51
Over 5 years 52360468.13 52141851.60
Subtotal 93400220.35 244035441.45
Less: bad debts 68668243.97 69124161.80
Total: 24731976.38 174911279.65
309Bengang Steel Plates Co. Ltd. Annual Report 2025
(2) Other receivables disclosed by method of bad debt provision
2025/12/312024/12/31
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Items Provision Provision Provision
Percentage Book Value Percentage Book Value
Amount Amount Percentage Amount Percentage Percentage
（%）（%）
（%）（%）（%）
Provision
assessed 15752285.66 16.87 15752285.66 100.00 15752285.66 6.45 15752285.66 100.00
individually
Provision
assessed by
grouping 77647934.69 83.13 52915958.31 68.15 24731976.38 228283155.79 93.55 53371876.14 23.38 174911279.65
credit risk
characteristics
Including:
Aging 56380806.01 60.36 52915958.31 93.85 3464847.70 201016027.11 82.37 53371876.14 26.55 147644150.97
portfolio
Risk-free
21267128.6822.7721267128.6827267128.6811.1727267128.68
portfolio
310Bengang Steel Plates Co. Ltd. Annual Report 2025
2025/12/312024/12/31
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Items Provision Provision Provision
Percentage Book Value Percentage Book Value
Amount Amount Percentage Amount Percentage Percentage
（%）（%）
（%）（%）（%）
Total 93400220.35 100.00 68668243.97 24731976.38 244035441.45 100.00 69124161.80 174911279.65
311Bengang Steel Plates Co. Ltd. Annual Report 2025
Significant Provision for bad debts assessed individually：
2025/12/312024/12/31
Bad
Item Other Provision for Basis for Other Provision fordebts
receivables bad debts receivables bad debts
ratio（%） provision
Benxi Steel
(Group)
Third
12504978.59 12504978.59 100.00 Bankrupt 12504978.59 12504978.59
Construction
Engineering
Co. Ltd.Total 12504978.59 12504978.59 12504978.59 12504978.59
Other receivables tested for impairment by portfolio:
Risk-free portfolio
2025/12/31
Item Provision for bad
Carrying amount Bad debts ratio (%)
debts
Risk-free portfolio 21267128.68
Total 21267128.68
Portfolio tested by aging
2025/12/31
Items Provision for bad
Carrying amount Bad debts ratio (%)
debts
Within 1 year 718602.46 7186.02
1.00
(inclusive)
1-2 years (inclusive) 1311521.74 131152.17 10.00
2-3 years (inclusive) 1966327.11 393265.42 20.00
3-4 years (inclusive) 12539103.20 12539103.20 100.00
4-5 years (inclusive) 3237069.03 3237069.03 100.00
312Bengang Steel Plates Co. Ltd. Annual Report 2025
2025/12/31
Items Provision for bad
Carrying amount Bad debts ratio (%)
debts
Over 5 years 36608182.47 36608182.47 100.00
Total 56380806.01 52915958.31
(3) Provision for Bad Debts
Stage one Stage two Stage three
Lifetime Lifetime
12-month
Provision for bad debts expected credit expected credit Total
expected credit
loss (not credit loss (credit
loss
impaired) impaired)
Beginning balance 572260.25 11604593.43 56947308.12 69124161.80
Beginning balance in
current period
--Transfer to Stage two -65576.09 65576.09
--Transfer to Stage
-6269551.606269551.60
three
--Reversal to Stage
two
--Reversal to Stage
one
Current period
-499498.14-4876200.3313620252.408244553.93
provision
Current period reversal
Current period
write-back
Current period
-8700471.76-8700471.76
write-off
Other change
Ending balance 7186.02 524417.59 68136640.36 68668243.97
(4) Provision reversal or recovery of bad debts of current period
313Bengang Steel Plates Co. Ltd. Annual Report 2025
Change in the Current Period
Reversal
Items 2024/12/31 Write-off or Other 2025/12/31
Provision or
Cancellation Changes
Recovery
Provision
for other
69124161.808244553.938700471.7668668243.97
receivables
bad debts
Total 69124161.80 8244553.93 8700471.76 68668243.97
(5) Written Off in the Current Period
Item Write-off Amount
Other receivables written off 8700471.76
(6) Classification by Nature
Nature 2025/12/31 2024/12/31
Subsidy for the "Living
87177700.00
show belt" Project
Intercompany Balances 89793338.08 153899831.94
Others 3606882.27 2957909.51
Total 93400220.35 244035441.45
(7) Top five debtors based on other receivables at the year-end
Accounts Percentage Provision for
Receivable of total doubtful debts
Accounts
Contract Asset and Accounts for Accounts
Receivable
Company Ending Contract Receivable Receivable
Ending
Balance Asset and and Contract
Balance
Ending Contract Asset Ending
Balance Asset (%) Balance
314Bengang Steel Plates Co. Ltd. Annual Report 2025
Accounts Percentage Provision for
Receivable of total doubtful debts
Accounts
Contract Asset and Accounts for Accounts
Receivable
Company Ending Contract Receivable Receivable
Ending
Balance Asset and and Contract
Balance
Ending Contract Asset Ending
Balance Asset (%) Balance
Yantai Bengang
Current 1-2years
Steel & Iron Sales 21267128.68 22.77
account 4-5 years
Co. Ltd.Benxi Steel
(Group) Third
Current over 5
Construction 12504978.59 13.39 12504978.59
account years
Engineering Co.Ltd.Benxi Steel
(Group) First
Current over 5
Construction 3247307.07 3.48 3247307.07
account years
Engineering Co.Ltd.Benxi Steel Current 1-2 years
2674500.002.86413000.00
(Group) Co. Ltd. account 2-3 years
Liaoning Huawei
Current over 5
Coal Preparation 2261360.00 2.42 2261360.00
account years
Co. Ltd.Total 41955274.34 44.92 18426645.66
315Bengang Steel Plates Co. Ltd. Annual Report 2025
3. Long-term Equity Investments
2025/12/312024/12/31
Item
Book Value Provision for impairment Carrying amount Book Value Provision for impairment Carrying amount
Investment in Subsidiaries 2422543459.43 2422543459.43 2391943459.43 2391943459.43
Investment in Associates and Joint Ventures 43269884.04 43269884.04 45413221.72 45413221.72
Total 2465813343.47 2465813343.47 2437356681.15 2437356681.15
1. Investment in Subsidiaries
Change in the Current Period
Provision Ending
Beginning
for balance of
Beginning balance balance of Ending balance of
Name of entity Additional Reduction in Impairment Provision
of investment Provision for Other investment
Investment Investment in the for
impairment
Current impairment
Period
Tianjin Bengang Steel Trading Co.
230318095.80230318095.80
Ltd.Changchun Bengang Steel Sales Co.
28144875.3628144875.36
Ltd.
316Bengang Steel Plates Co. Ltd. Annual Report 2025
Change in the Current Period
Provision Ending
Beginning
for balance of
Beginning balance balance of Ending balance of
Name of entity Additional Reduction in Impairment Provision
of investment Provision for Other investment
Investment Investment in the for
impairment
Current impairment
Period
Guangzhou Bengang Steel Trading
200000000.00200000000.00
Co. Ltd.North Hengda Logistics Co. Ltd. 169661869.19 169661869.19
Shenyang Bengang Metallurgical
200000000.0028144875.36228144875.36
Technology Co. Ltd.Benxi Bengang Steel Sales Co. Ltd. 30000000.00 30000000.00
Bengang POSCO Cold Rolled Sheet
1019781571.101019781571.10
Co. Ltd.Yantai Bensteel Sales Co. Ltd. 219100329.41 219100329.41
Dalian Benruitong Automotive
65000000.0065000000.00
Materials Technology Co. Ltd.Shanghai Ben Gang Metallurgical
229936718.57229936718.57
Technology Co. Ltd.
317Bengang Steel Plates Co. Ltd. Annual Report 2025
Change in the Current Period
Provision Ending
Beginning
for balance of
Beginning balance balance of Ending balance of
Name of entity Additional Reduction in Impairment Provision
of investment Provision for Other investment
Investment Investment in the for
impairment
Current impairment
Period
Green Gold (Benxi) Renewable
30600000.0030600000.00
Resources Co. Ltd.Total 2391943459.43 58744875.36 28144875.36 2422543459.43
2. Investment in Associates and Joint Ventures
For investment in associates and joint ventures please refer to Note 5 (9) Long-term Equity Investments.
318Bengang Steel Plates Co. Ltd. Annual Report 2025
4. Operating Revenue and Operating Costs
1. Operating Revenue and Operating Costs
Current period Previous period
Item
Revenue Cost Revenue Cost
Principal
45363281780.7247821196765.1050700530631.9754540344179.60
business
Other
1245152063.961231298098.651295762825.871309833559.74
business
Total 46608433844.68 49052494863.75 51996293457.84 55850177739.34
2. Breakdown of Operating Revenue and Operating Costs
Current period
Item Principal business Principal business Other business Other business
revenue revenue revenue costs
Classified by
Time of Transfer
of Goods:
Recognized at a
45363281780.7247821196765.101235446887.551231278319.41
Point in Time
Recognized over
9705176.4119779.24
a Period of Time
Total 45363281780.72 47821196765.10 1245152063.96 1231298098.65
Classified by
Operating
Region:
Domestic 36766360467.95 38708460173.56 1245152063.96 1231298098.65
Overseas 8596921312.77 9112736591.54
Total 45363281780.72 47821196765.10 1245152063.96 1231298098.65
5. Income on investment
Item Current period Previous period
319Bengang Steel Plates Co. Ltd. Annual Report 2025
Item Current period Previous period
Income from long-term equity investment (cost
-2143337.68-1497124.69
method)
Income from long-term equity investment (equity
180557967.43163898383.95
method)
Gains from Debt Restructuring 17446268.06 6459490.86
Other -23527129.04 -47966970.21
Total 172333768.77 120893779.91
17. Supplementary information
(1) Details of non-recurring profit and loss
Items Amount Notes
Gains or Losses from the Disposal of Non-Current Assets
including the reversal of previously recognized impairment -44758947.66
provisions.Government Grants Recognized in Profit or Loss for the Period
except for those that are closely related to the company’s normal
business operations comply with national policies are granted 104879166.04
based on predetermined standards and have a continuous impact
on the company's profit or loss.Fair Value Gains or Losses from Financial Assets and Liabilities
Held by Non-Financial Enterprises as well as disposal gains or
losses from financial assets and liabilities excluding effective
hedging activities related to the company's normal operations.Funds Occupation Fees Charged to Non-Financial Enterprises
recognized in profit or loss for the period.Gains or Losses from Entrusted Investments or Asset Management
by third parties.Gains or Losses from Loans Entrusted to External Parties.Losses fromAsset Impairment Due to Force Majeure such as
natural disasters.Reversal of Impairment Provisions for Individually Tested
21641769.22
Receivables.
320Bengang Steel Plates Co. Ltd. Annual Report 2025
Items Amount Notes
Gains fromAcquiring Subsidiaries Associates or Joint Ventures
where the acquisition cost is lower than the acquirer's share of the
investee’s identifiable net assets at fair value.Net Profit or Loss of a Subsidiary from the Beginning of the Period
to the Merger Date in a business combination under common
control.Gains or Losses from Non-Monetary Asset Exchanges.Gains or Losses from Debt Restructuring. 17512835.36
One-Time Expenses Due to Discontinuation of Business Activities
such as severance payments for employees.One-Time Impact on Profit or Loss Due to Changes in Tax
Accounting or Other Legal and Regulatory Adjustments.One-Time Share-Based Payment Expenses Recognized Due to the
Cancellation or Modification of an Equity Incentive Plan.Gains or Losses from Changes in Fair Value of Payable Employee
Compensation for cash-settled share-based payments after the
vesting date.Gains or Losses from Fair Value Changes of Investment Properties
measured using the fair value model.Gains from Transactions Conducted at Unfair Market Prices.Gains or Losses from Contingent Events Unrelated to the
Company’s Normal Business Operations.Management Fee Income from Entrusted Operations.Other Non-Operating Income and Expenses Not Included in the
5168882.16
Above Categories.Other Gains or Losses that Meet the Definition of Non-Recurring
Gains and Losses.Subtotal 104443705.12
Income Tax Effect 19492491.17
Effect of Non-controlling Interests (After Tax) 99931.61
Total 84851282.34
321Bengang Steel Plates Co. Ltd. Annual Report 2025
(2) Net asset yield and earnings per share
Weighted Earnings per share (Yuan)
Profit in the Reporting Period average net
Basic EPS Diluted EPS
assets yield (%)
Net profit attributable to ordinary
-39.74-0.960-0.960
shareholders
Net profit attributable to ordinary
shareholders after deducting -40.77 -0.980 -0.980
non-recurring profit and loss
Note: Assuming the company’s convertible bonds are converted into ordinary shares the
outstanding number of ordinary shares will increase by 14255658.48 shares and net
profit will increase by CNY 307187521.56 resulting in an increase of CNY 0.08 per
share in earnings per share. This indicates that the potential ordinary shares are
anti-dilutive rather than dilutive and therefore are not considered in the calculation of
diluted earnings per share. Diluted earnings per share are determined based on basic
earnings per share.
(3) Differences between Domestic and Foreign Accounting Standards
1. The differences in net profit and net assets in financial reports disclosed under
International Financial Reporting Standards and Chinese accounting standards
□ applicable √ not applicable
2. The difference between net profit and net assets in financial reports disclosed under
overseas accounting standards and Chinese accounting standards
□ applicable √ not applicable
3. Explanation of the reasons for differences in accounting data under domestic and
foreign accounting standards. If the data that has been audited by an overseas audit
institution is adjusted for differences the name of the overseas institution should be
indicated.
(4) Others
322Bengang Steel Plates Co. Ltd. Annual Report 2025
323
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