Bengang Steel Plates Co. Ltd. Interim Report 2025

Bengang Steel Plates Co. Ltd.Interim Report 2025

August 2025

1Bengang Steel Plates Co. Ltd. Interim Report 2025

Ⅰ. Important Notice Table of Contents and Definitions

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

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

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

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

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

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

officer) hereby confirm that the financial report in this interim report is true accurate and complete.All directors have attended the board meeting to review this report.This report involves forward-looking statements such as future plans and does not constitute a

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

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

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

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

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

Network are selected as the company's information disclosure media. All information about the

company is subject to the information published in the above-mentioned designated media. Investors

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

reserves.

2Bengang Steel Plates Co. Ltd. Interim 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 Social Re.. 30

V. Important Events ................................ 32

VI. Status of Share Capital Changes and Shareholde.. 59

VII. Status of Bonds ............................... 63

VIII. Financial Report ............................. 67

IX. Other Reported Data ........................... 247

3Bengang Steel Plates Co. Ltd. Interim Report 2025

Reference File Directory

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

chief accountant;

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

3. Interim reports published in other securities markets.

4Bengang Steel Plates Co. Ltd. Interim Report 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 and Administration 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 Resources Co. Ltd.

5Bengang Steel Plates Co. Ltd. Interim 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

II. Contact Information

Secretary of the Board Representative of Stock Affairs

Name Zheng Zhengli Chen Liwen

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

Tel 024-47827003 024-47828980

Fax 024-47827004 024-47827004

Email zhengzhengli76@126.com bgbc000761@126.com

III. Other Information

1.Contact Information of the Company

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

□ Applicable √ Not applicable

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

changed during the reporting period. Please refer to Annual Report 2024 for details.

6Bengang Steel Plates Co. Ltd. Interim Report 2025

2. Place for information disclosure

Whether the information disclosure and place for consulting have changed

□ Applicable √ Not applicable

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

interim report and lodging address of interim report of the Company have not changed during the reporting period.Please refer to Annual Report 2024 for details

3. Other related information

Whether other related information have changed

□ Applicable √ Not applicable

IV. Summary of Accounting Data and Financial Index

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

√ Yes □ No

Reasons for retrospective adjustment or restatement

Business Combinations under Common Control

Increase or decrease in

this reporting period

Current reporting Previous reporting period over the previous period period

Before adjustment After adjustment After adjustment

Revenue (RMB yuan) 24697800421.99 28364539286.80 28366851887.99 -12.93%

Net profit attributable to the

shareholders of the listed -1399277780.90 -1550950137.71 -1541206007.44 9.21%

company (RMB yuan)

Net profit attributable to the

shareholders of listed

company after deducting -1450379795.78 -1621652605.92 -1621653948.92 10.56%

non-recurring gain/loss

(RMB yuan)

Net cash flows generated by

operating activities (RMB 371629764.04 1095091396.54 1080815690.40 -65.62%

yuan)

Basic EPS(RMB/share) -0.341 -0.378 -0.375 9.07%

Diluted EPS (RMB/share) -0.341 -0.378 -0.375 9.07%

Weighted average return on

-12.50%-9.55%-9.38%-3.12%

equity

At the end of previous year Increase or decrease at

the end of this

7Bengang Steel Plates Co. Ltd. Interim Report 2025

At the end of the reporting period over

current reporting the previous year

period Before adjustment After adjustment After adjustment

Total assets (RMB yuan) 45758090259.38 45815896140.58 45815896140.58 -0.13%

Net assets attributable to

shareholders of the listed 10503320759.53 11887217861.48 11887217861.48 -11.64%

company (RMB yuan)

V. Differences between Domestic and Foreign Accounting Standards

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

accounting standards.□Applicable √ Not applicable

There was no difference of net profit and net assets disclosed in financial reports prepared under IFRS and

Chinese accounting standards during the reporting period.

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

accounting standards.□ Applicable √ Not applicable

There was no difference of net profit and net assets disclosed in financial reports prepared under overseas and

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

√ Applicable □ Not applicable

Unit: yuan

Items Amount Notes

Profit or loss from disposal of non-current assets

(including the write-off part for which assets impairment -31536907.02

provision is made)

Details of government subsidies recorded into current

profits and loss(except such government subsidy closely

related to the company’s normal business operation

meeting the regulation of national policy and enjoyed 78993583.13

constantly in certain quota or quantity according to a

certain standard)

Reversal of impairment provisions for individually

tested receivables 10820884.61

Gains or losses from debt restructuring 7215.64

Other non-operating revenue and expenditure other than

above items 4740318.97

Less: Impact of income tax 13042387.54

Impact of non-controlling interests (after tax) -1119307.09

Total 51102014.88 --

8Bengang Steel Plates Co. Ltd. Interim Report 2025

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

□ Applicable√ Not applicable

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

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

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

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

9Bengang Steel Plates Co. Ltd. Interim Report 2025

III. Management Discussion and Analysis

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

1. Industry development

In the first half of 2025 driven by falling prices for raw materials like iron ore and coking coal the steel industry's

operating performance continued to recover. However the domestic steel industry still exhibits a "three highs and three

lows" landscape: high production high costs high inventory low demand low prices and low profitability. The overall

market is in a bottoming-out phase. Downstream demand is weak supply outstrips demand and high raw material prices

have resulted in a smaller downward shift in costs than in steel prices. Consequently steel prices remain weak overall

and the steel market is caught between strong expectations and weak realities.

2. Main business main products and their uses

During the reporting period the company's principal businesses included steel smelting rolling processing power

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

product sales. The company has established a base for high-quality steel products primarily automotive steel with a

product portfolio encompassing over 60 varieties and 7500 specifications. High-value-added and high-tech products

account for over 80% of the company's portfolio. Its leading products such as automotive surface panels home appliance

panels oil pipeline steel container panels and shipbuilding panels are widely used in the automotive home appliance

petrochemical aerospace machinery manufacturing energy and transportation construction and decoration and metal

products sectors with exports to over 60 countries and regions. During the reporting period the company's principal

business remained unchanged.

3. Business model

Procurement model: The company's procurement model includes domestic and international procurement. Domestic

procurement is conducted through centralized procurement unified bidding price comparison and negotiation.International procurement is conducted through long-term contracts direct procurement open and invited bidding price

comparison competitive negotiation and negotiated procurement. This is primarily handled by Ansteel International

Trade Benxi Branch.Sales model: The company's sales are divided into domestic sales and export sales. Domestic sales mainly adopt the direct

sales model. The company sells directly to large customers and other small and medium-sized customers are sold to them

through regional sales subsidiaries. Export sales mainly utilize the powerful marketing network accumulated by Ansteel

International Trade Benxi Branch in international trade over the years. Its agent exports the company's products and pays

the agency fee to Ansteel International Trade Benxi Branch.

4. Main performance drivers

During the reporting period the company achieved the following main operating indicators: pig iron production of 5.1997

million tons crude steel production of 5.4165 million tons and steel production of 8.1616 million tons. Looking back on

the work in the first half of the year it is mainly reflected in the following aspects:

(1) Focusing on the important requirement of "continuing efforts to make up for shortcomings and optimize the structure"

the core competitiveness has been improved. The plate company continues to deepen the "lean + double base" and

strengthen penetrating management promote the transformation from production-oriented to operation-oriented and

resolutely tackle the hard bone of "efficiency improvement". Through the implementation of comprehensive budget

management cost reduction and efficiency improvement throughout the process and all-round sales to increase

profits the pig iron cost has achieved a breakthrough the production and sales coordination has become more

efficient the low-cost moderately high-strength thin-gauge specialized production has been continuously optimized

and the operating efficiency has gradually improved.

10Bengang Steel Plates Co. Ltd. Interim Report 2025

(2) Focusing on the key requirements of "adhering to high-end intelligent and green development and continuously

improving the technological content and added value of products" the company has made new progress in its

transformation and upgrading. Focusing on "high-end precision and specialty" the company deepened scientific

and technological research resulting in a 31% year-on-year increase in the share of key products an 89% year-on-

year increase in sales of thermoformed products and a 27.37 million yuan increase in profits from new high-value-

added products. The 2300 production line rolled 2190mm ultra-wide hot-rolled plate for the first time filling a

domestic gap in wide-width plate production and achieving internationally leading technical indicators. Focusing on

"intelligent transformation and digital transformation" the company is optimizing management and manufacturing

promoting industrial digitization digital industrialization and data value creation raising its intelligence index to

82.67. Focusing on "pursuing innovation and greening" the company continues to advance ultra-low emission

upgrades and upgrade energy-consuming equipment. Focusing on improving management improving production

processes and optimizing the energy structure in five key processes: coking sintering ironmaking steelmaking and

rolling the company has significantly reduced emissions of major pollutants and overall energy consumption per ton

of steel. Bengang Plate and Bengang POSCO were recognized as municipal green factories; their ultimate energy

efficiency completed on-site acceptance by the China Iron and Steel Association; their hot-rolled cold-rolled

galvanized and electro-galvanized low-carbon emission automotive steels completed industrial experiments passed

certifications from FAW Toyota Sony etc. and are in the process of advancing BMW certification; their hot-rolled

products passed the China Iron and Steel Association's "low-carbon emission steel" certification with a carbon

efficiency rating of E.

(3) Focusing on the key requirement of "further focusing on issues highlighting key points and resolving difficult

problems in reform efforts" we are taking new steps to deepen reform. We will establish a model for "human-chain

integration" reform at the Cold Rolling Mill and promote the development of "micro-unit" profit centers for

electrogalvanizing playing a leading role in demonstration and driving reform to a deeper level. With greater reform

momentum we will push the special steel industry to resolve deep-seated conflicts and improve production and

operational efficiency.

(4) Focusing on the crucial requirement of "unwaveringly upholding and strengthening Party leadership and

unwaveringly exercising strict Party discipline" the political and organizational functions of Party organizations have

been continuously enhanced. We consistently integrate learning and education with the comprehensive strengthening

of Party organizations and the in-depth promotion of Party conduct clean governance and high-quality Party

building to guide and ensure high-quality development. Party building innovation and the promotion of clean

enterprise practices are simultaneously improving and the development of corporate culture and employee morale

are projecting a new image.

(5) Adhere to bottom-line thinking and strictly adhere to safety and environmental protection red lines. Regularly carry

out "four no's and two direct" safety inspections; strengthen safety supervision of relevant parties strictly control the

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

increase environmental protection assessment efforts and strictly implement the "three simultaneous" requirements.II. Analysis on Core Competitiveness

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

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

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

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

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

development of enterprises.

1. Manufacturing capacity. Production and manufacturing capabilities. The company prioritizes quality focusing on

adjusting its product mix to improve quality and efficiency. Following the principle of process compliance the

company strengthens quality management. Capitalizing on the production of high-quality steel the company

strengthens its consistent quality management system strictly prohibiting the release of substandard products into

the market and truly enhancing its market reputation. The company will intensify brand development for automotive

and appliance steel to enhance product premiums. The company will continuously advance technological

breakthroughs in pipeline steel container steel and specialized steel providing high-quality products for major

national projects and special projects.

11Bengang Steel Plates Co. Ltd. Interim Report 2025

2. Equipment renovation and upgrades. The company has allocated RMB 1.36 billion for fixed asset investment in 2025.

A new round of large-scale technological and environmental renovations has been implemented including ultra-low

emissions from the coke oven system at the Ironmaking Plant VOCS collection and material transportation in the

chemical production area of the Ironmaking Plant rainwater and sewage diversion treatment in the coking process

at the Ironmaking Plant quality and efficiency improvement of the 2300 line at the hot rolling mill and upgrades to

the 1780 skin-pass mill unit. Currently ultra-low emissions from the coke oven system at the Ironmaking Plant and

VOCS collection and material transportation in the chemical production area are underway.

3. New product development capabilities. 36 new product development projects were completed generating orders of

174000 tons. The company promoted the serialization of hot-formed steel products and completed the first contract

delivery of rolled martensitic steel (EF1900-MS). The company also developed B780NP steel for gas storage support

structures in new energy commercial vehicles securing orders of 350 tons and achieving positive user experience.L415MH hydrogen pipeline steel received certification from Liaoyang Steel Pipe Plant. The company also developed

high-quality gear steel 22CrMoH(ZQ) which was successfully introduced to China National Heavy Duty Truck

Group.

4. Technological innovation capabilities. The company has strengthened university-enterprise collaboration signing

three international technical cooperation projects with Northeastern University and Shanghai University to promote

the transfer of mature scientific and technological achievements from universities and research institutes to

enterprises. Regarding standards the company has presided over the development of two national standards

participated in the development of nine national standards presided over the development of one industry standard

participated in the development of three industry standards and participated in the development of seven group

standards. Regarding intellectual property the company has received 139 patent applications including five overseas

patents and has authorized 79 patents including 30 invention patents. Regarding scientific and technological

achievements the company has won four provincial and ministerial-level science and technology progress awards.Among them "Research and Application of Key Technologies for High-Performance Hydraulic Iron Moulding

Machines" won first prize in the Invention and Entrepreneurship Award of the China Invention Association."Research on the World's First Coating-Free Hot-Formed Steel and Its Application in the Front Dash Assembly of

FAW Hongqi Models" and "Research and Application of Key Technologies for Hot-Rolling Processes for Wide and

Thin High-Strength Automotive Structural Steel for Wide and Thin Gauges" won first and second prizes respectively

in the "Spark" Innovation and Creativity Competition for State-Owned Enterprises in the Northeast "Three Provinces

and One Region" (Liaoning Division). The "Method for Producing Hot Stamping Steel with Controlled Oxide Scale

Shedding without Coating" won the China Patent Award for Excellence.

5. Green development capabilities. The company has focused on green factory registration developing a carbon

management plan for its plate company compiling a low-carbon development plan for the 15th Five-Year Plan trial

production of green steel products certification of low-carbon steel products collection and reporting of greenhouse

gas emissions accounting data and development of a carbon stewardship platform. The company continues to

advance testing of low-carbon products for semi-steel process paths achieving a comprehensive reduction of carbon

emissions by 27-40%.

6. Intelligent manufacturing capabilities. By 2025 investments will be made in intelligent projects such as the

construction of a smart factory in the three cooling areas the second phase of the consistent quality data management

platform and the autonomous and controllable adaptation and transformation of the plate information system. Led

by the "Intelligence Index" intelligent manufacturing will be implemented with the digitalization of process

processes. Driven by digital and intelligent technology innovation the data assetization rate has reached 88%. 26

robots have been deployed in 3D operations such as blast furnace inspection ironmaking temperature measurement

and sampling and slag removal increasing the replacement rate from 9% to 32%. The Intelligence Index has reached

82.67 moving from the integration level to the optimization level a 19.36% increase from the previous 69.26

demonstrating the acceleration of intelligent plate manufacturing.III. Analysis on Main Business

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

12Bengang Steel Plates Co. Ltd. Interim Report 2025

Current Period Previous Period Year-on-year percentage Reason

Operating income 24697800421.99 28366851887.99 -12.93%

Operating cost 25441217248.92 29168175176.89 -12.78%

Selling and

distribution expenses 61464166.53 71977059.91 -14.61%

General and

administrative 285764896.43 359904698.96 -20.60%

expenses

Due to the increase in

Financial expenses 208340955.08 134726043.87 54.64% interest on interest-bearing liabilities and

exchange losses.Income tax expenses 19976028.30 37458939.66 -46.67% Due to decrease in profits of subsidiaries.Research and

development 947389590.00 970755841.00 -2.41%

investment

Due to decrease in

Net cash flows from

operating activities 371629764.04 1080815690.40 -65.62%

cash received from

sale of goods and bill

discount.Due to increase in the

purchase and

Net cash flows from -948969224.56 -508780925.04 -86.52% construction of long-investing activities term assets and foreign

exchange paid for

investment.Net cash flows from Due to decrease in

financing activities 93464711.63 -611953198.81 115.27% repayment of borrowings

Due to decrease in

cash received from

Net increase in cash sale of goods and bill

and cash equivalents -471693191.36 -17040213.03 -2668.12% discount and increase in the purchase and

construction of long-

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

□ Applicable √ Not applicable

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

Unit: Yuan

Current period Previous period Change over Amount Proportion Amount Proportion previous period

Total operating

income 24697800421.99 100% 28366851887.99 100% -12.93%

By industries

Industry 24697800421.99 100.00% 28366851887.99 100.00% -12.93%

By products

Steel plate 24054500828.87 97.40% 27723284169.08 97.73% -13.23%

Others 643299593.12 2.60% 643567718.91 2.27% -0.04%

By region

Domestic 20437177010.22 82.75% 23407233984.72 82.52% -12.69%

Abroad 4260623411.77 17.25% 4959617903.27 17.48% -14.09%

13Bengang Steel Plates Co. Ltd. Interim Report 2025

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

√ Applicable □ Not applicable

Unit: Yuan

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

By industries

Industry 24697800421.99 25441217248.92 -3.01% -12.93% -12.78% -0.19%

By products

Steel plate 24054500828.87 24798941152.72 -3.09% -13.23% -13.03% -0.25%

Others 643299593.12 642276096.20 0.16% -0.04% -1.95% 1.95%

By regions

Domestic 20437177010.22 21121339329.27 -3.35% -12.69% -12.59% -0.12%

Abroad 4260623411.77 4319877919.65 -1.39% -14.09% -13.70% -0.46%

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

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

□ Applicable √ Not applicable

IV. Analysis of Non-core Business

√ Applicable □ Not applicable

Unit: Yuan

Amount Proportion in total profit Causes Recurring or non-recurring

Other income 109012246.69 -8.09% Due to receiving government subsidies No

Income on

investment (“-” for -17631847.31 1.31% Due to bank bill discount No

losses)

Credit impairment Due to increase in account

losses (“-” for -9308109.96 0.69% receivable impairment No

losses) provision

Asset impairment

losses (“-” for 36671170.60 -2.72% Due to reversal of inventory

losses) impairment provision

No

Non-operating Due to the gain from scarp

income 9723769.21 -0.72% of non-current assets and No other incomes

Non-operating 36523366.11 -2.71% Due to scrap of non-current expenses assets and other expenses No

V. Assets and Liabilities

1. Significant Change of Assets Components

Unit: Yuan

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

period in previous year

Proportio Proportio Proportion

Amount n in the n in the change

Notes to significant changes

total Amount total

assets assets

14Bengang Steel Plates Co. Ltd. Interim Report 2025

Cash at bank and

on hand 2119971644.73 4.63% 2453888470.48 5.36% -0.73%

Accounts

receivable 933243164.81 2.04% 501484081.73 1.09% 0.95%

Inventories 7049937599.37 15.41% 7333084694.27 16.01% -0.60%

Long-term equity

investments 45413221.72 0.10% 45413221.72 0.10% 0.00%

Fixed assets 26050690523.41 56.93% 26426320453.57 57.68% -0.75%

Construction in

progress 4537520033.00 9.92% 3934442501.50 8.59% 1.33%

Right-of-use

assets 1646483647.30 3.60% 1685925710.14 3.68% -0.08%

Short-term loans 771932029.09 1.69% 371055490.50 0.81% 0.88%

Contract

liabilities 2720427152.25 5.95% 2908598425.73 6.35% -0.40%

Long-term loans 3544759075.31 7.75% 2891941462.40 6.31% 1.44%

Lease liabilities 1615827405.83 3.53% 1633911586.51 3.57% -0.04%

2. Main overseas assets

□ Applicable √ Not applicable

3. Assets and liabilities measured at fair value

√ Applicable □ Not applicable

Unit: yuan

Profit and

loss from Accumulated Purchase

Items Beginning changes in

fair value Impairment Sales amount

balance fair value in changes accrued in the

amount during the Other Ending

recognized in current period during the current period changes balance the current current period

period equity

Financial

assets

4.Other equity

instrument 933426254.63 -122613267.37 933426254.63

investments

Subtotal of

financial 933426254.63 -122613267.37 933426254.63

assets

Total 933426254.63 -122613267.37 933426254.63

Financial

liabilities 0.00 0.00 0.00

Other changes

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

15Bengang Steel Plates Co. Ltd. Interim Report 2025

□ Applicable √ Not applicable

4. Restricted Assets by the End of the Period

Jun 30 2025

Gross carrying

Items amount Book value Reason of restriction Situation

Cash at bank and

on hand 1001459617.18 1001459617.18 Deposit for notes and L/C Deposit for notes and L/C

Notes receivable 67041187.99 67041187.99 Pledged Pledged

Total 1068500805.17 1068500805.17

VI. Analysis of investment status

1. Overall situation

□ Applicable √ Not applicable

2. Major equity investments obtained during the reporting period

√ Applicable □ Not applicable

Unit: yuan

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16Bengang Steel Plates Co. Ltd. Interim Report 2025

items

requiring

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according

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business

activities

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departme

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17Bengang Steel Plates Co. Ltd. Interim Report 2025

g of metal

waste and

debris;

Sales of

non-

ferrous

metal

alloys;

General

cargo

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1.21

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18Bengang Steel Plates Co. Ltd. Interim Report 2025

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

□ Applicable √ Not applicable

4. Financial asset investment

(1) Securities investment

□ Applicable √ Not applicable

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

(2) Investment in derivatives

□ Applicable √ Not applicable

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

5. Use of Raised Funds

√ Applicable □ Not applicable

(1) Use of Raised Funds

√Applicable □ Not applicable

Unit: 10 thousand yuan

Fund

Usage

Total Amou

Ratio

Total Funds Purpos nt of

at the Cumul

Total Funds Cumul Redire Cumul Total e and raised

Fundra Securit Net End of ative

amoun Used ative cted ative Unuse destina funds

ising ies Raised the Redire

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

Metho listing Funds Report cted

funds Curren Used the cted Raised unused more

d date (1) ing Funds

raised t (2) Report Funds Funds raised than

Period Ratio

Period ing funds two

(3)=

Period years

(2)/

(1)

Issue

of August Not

68000675924878272.171880910147

2020 conver 4 400.5 0 0 0.00% applica

003.87%6.139

tible 2020 ble

bonds

68000675924878272.171880910147

Total -- -- 400.5 0 0 0.00% --

003.87%6.139

Explanation of the overall use of raised funds

1. Use of Funds Raised for Investment Projects

The actual use of the funds raised in Jan. to Jun. 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

19Bengang Steel Plates Co. Ltd. Interim Report 2025

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

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.

20Bengang Steel Plates Co. Ltd. Interim 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

21Bengang Steel Plates Co. Ltd. Interim Report 2025

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

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

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

Use of Idle Raised Funds to Temporarily Supplement Working Capital".

(4) 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 April 1 2025 the Company has returned all of the idle raised funds of RMB 845000000.00 used to temporarily supplement

working capital to the Company's special account for raised funds.As of June 30 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

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

22Bengang Steel Plates Co. Ltd. Interim Report 2025

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 RMB870176200 (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 June 30 2025 except for the advance investment and replacement of investment projects with raised funds and the temporarysupplement 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.

(2) Fundraising commitments

√Applicable □ Not applicable

Unit: 10 thousand yuan

Com Cum Inves Cum

If the Proje Has

mitte ulativ tment ulativ

Proje Inves ct There

d e Progr Bene e

ct Total Adju tment Reac Been

Inves Inves ess fits Bene

Finan Been Com sted Amo hed Expe a

Secur tment tment by Achi fits

cing Proje Chan mitte Total unt Prede cted Majo

ities Proje Amo the eved Achi

Proje ct ged d Inves for termi Bene r

Listin cts unt End in the eved

ct Natur (Incl Inves tment the ned fits Chan

g and by of the Repo by

Nam e uding tment Amo Repo Usabl Achi ge in

Date Exce the Perio rting the

e Partia Amo unt rting e eved Proje

ssive End d (3) Perio End

l unt (1) Perio Statu ct

Fund of the = d of the

Chan d s Feasi

Alloc Perio (2)/(1 Perio

ges) Date bility

ation d (2) ) d

Committed Investment Projects

High-

BenG

grade Manu

ang

high factur

Conv Augu Not

magn ing 1016 1016 0.14

ertibl st 4 No 0 141 0 0 appli No

etic const 20 20 %

e 2020 cable

induc ructio

Bond

tion n

s

non-

23Bengang Steel Plates Co. Ltd. Interim Report 2025

orient

ed

silico

n

steel

proje

ct

Steel

BenG plant

Manu

ang No. 8

factur Octo - -

Conv Augu castin 227

ing 3350 3350 30.1 67.9 ber 147 344

ertibl st 4 g No 56.1 No No

const 0 0 9 3% 31 75.2 04.3

e 2020 mach 9

ructio 2020 8 5

Bond ine

n

s proje

ct

Blast

furna

BenG ce

Manu

ang No. 5

factur Nove - -

Conv Augu capac 811

ing 9600 9600 84.5 mber 150 206

ertibl st 4 ity No 275 87.5 No No

const 0 0 7% 30 02.6 92.4

e 2020 repla 2

ructio 2020 9 5

Bond ceme

n

s nt

proje

ct

Speci

al

BenG steel

Manu

ang electr

factur

Conv Augu ic 129 Not

ing 1416 1416 91.1

ertibl st 4 furna No 0 042. 0 0 appli No

const 00 00 3%

e 2020 ce 92 cable

ructio

Bond upgra

n

s de

proje

ct

CCP

BenG

P Manu

ang

powe factur Dece

Conv Augu 434 663

r ing 8330 8330 52.2 mber 157

ertibl st 4 No 76.3 99.0 03.1 Yes No

gener const 0 0 2% 31 77.8

e 2020 8 9

ation ructio 2022

Bond

proje n

s

ct

Steel

plant

BenG No.Manu

ang 4-6

factur Dece

Conv Augu conv 111 Not

ing 1990 1990 19.0 56.2 mber

ertibl st 4 erter No 97.1 0 0 appli No

const 0 0 1 7% 31

e 2020 envir 6 cable

ructio 2020

Bond onme

n

s ntal

transf

ormat

24Bengang Steel Plates Co. Ltd. Interim Report 2025

ion

proje

ct

BenG

ang Repa Repa

Conv Augu ymen ymen Not

200020002000100.0

ertibl st 4 t of t of No 0 0 0 appli No

0000000%

e 2020 bank bank cable

Bond loans loans

s

-

487112

Subtotal of Committed 6759 6759 400. 140

823.

Investment Projects -- 20 20 -- --

06.3----

500.1

879

7

Use of Over-Raised Funds

Augu Not Not

0.00

None st 4 None appli No 0 0 0 0 0 0 appli No

%

2020 cable cable

-

487112

675675400.140

Total -- 823. -- -- 06.3 -- --

920920500.1

879

7

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.(Including The company has adjusted its development strategy and 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

raised funds

Changes in the

Implementatio Not applicable

n Location of

25Bengang Steel Plates Co. Ltd. Interim Report 2025

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) which is not applicable.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

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 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 reasons for the remaining proceeds are: 1. The company consistently adheres to the principles of rationality

economy and efficiency in implementing the investment projects strictly adhering to relevant regulations on the

Amount and management of raised funds to ensure optimal capital allocation and cost control while ensuring project quality.Reasons for When preparing the project feasibility study the company calculated the investment project based on the current

Surplus raised production technology and process plan. However as the company gained experience in early production its

Funds in capabilities in equipment selection procurement and production line optimization continued to grow and

Project economies of scale emerged effectively reducing construction costs. Furthermore during project implementation

Implementatio the company strengthened cost control and budget management at all stages based on actual needs rationally

n 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 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

Destination of

The unused raised funds are deposited in a designated account for raised funds.Unused raised

Funds

Issues or

Other

Situations in

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

raised Funds

26Bengang Steel Plates Co. Ltd. Interim 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.VII. Significant Assets and Equity Sold in Reporting Period

1. Significant Assets Sold

□ Applicable √ Not applicable

2. Substantial Equity Sold

□ Applicable √ Not applicable

VIII. Analysis on Main Subsidiaries and Share Participating Companies

√ Applicable □ Not applicable

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

Unit: Yuan

Company Company Main Registered

Name type business capital Total assets Net assets Turnover

Operating

profit Net Profit

Bengang

POSCO Processing

Cold Rolled Subsidiary and sales of 192000000 5495628297.35 2482555227.53 4625594944.57 208259632.58 175927445.95

Sheet Co. steel

Ltd.Acquirement and disposal of subsidiaries during the reporting period

√ Applicable □ Not applicable

Methods of acquiring and disposing of Impact on overall production operation

Company name

subsidiaries during the reporting period and performance

It is conducive to reducing related-party

Green Gold (Benxi) Renewable

Newly established transactions and increasing company

Resources Co. Ltd.profits.IX. Structured Entities controlled by the Company

□ Applicable √ Not applicable

X. Risks and countermeasures for the Company

1. Raw Material Price Fluctuation Risk

The raw material market is volatile and subject to significant fluctuations. Coking coal and coke are significantly impacted

by safety environmental protection and geopolitical factors. Market price fluctuations impact corporate profits placing

significant pressure on the company's cost control.Countermeasures: Strengthen market analysis and assessment ensure rational raw material procurement and manage

procurement cycles. Purchase at low points and ensure inventory increases and decreases align with market trends to

avoid potential inventory losses. Continue to strengthen benchmarking and tap potential optimize coal and ore blending

27Bengang Steel Plates Co. Ltd. Interim Report 2025

and further reduce production costs. Expand annual long-term raw material procurement partnerships leveraging long-

term partnerships to secure preferential prices below market prices.

2. Market risk

China's steel industry faces multiple challenges. The industry as a whole is undergoing a period of deep adjustment

shifting from incremental expansion to stock optimization and the contradiction between supply and demand continues

to intensify. China is implementing policies to stabilize growth but investment growth is slowing and it will take time

for the policies to be implemented before actual downstream demand recovers. Growth in downstream steel demand

remains uncertain and market competition among homogeneous steel products is intensifying.Countermeasures: Focus on innovation and leadership promote "revitalizing the company through science and

technology innovation" upgrade product mix to a high-end level strengthen the high-end steel material service base

build high-end specialized and special-purpose product brands and strive to develop more high-end and sophisticated

steel grades. Optimize the benchmarking system highlight benchmarking priorities continuously promote lean

production improve and optimize the company's process technology upgrades optimize technical indicators adhere to

extreme cost reduction measures and explore potential process cost reduction solutions.

3. Environmental Risks

Under the national "carbon peak" and "carbon neutrality" goals environmental protection authorities have stepped up

their oversight of pollution control in the steel industry placing increasingly stringent demands on the company to meet

environmental emission standards and achieve energy conservation and emission reduction. This has increased the

company's environmental investment and operating costs exacerbating the environmental challenges it faces.Countermeasures: Benchmark the carbon emission intensity of similar companies explore carbon reduction potential

and establish a comprehensive carbon emission management system; strictly enforce environmental management

responsibilities leverage digital tools to strengthen full-process control ensure the efficient operation of environmental

protection facilities and further improve resource and energy efficiency; increase research and development efforts in

process innovation and green transformation technologies focusing on the development and promotion of green and low-

carbon products; improve the environmental emergency warning and risk prevention and control system strengthen the

operation and maintenance of existing environmental protection equipment and facilities and standardize operational

controls with a focus on strengthening monitoring of air pollution sources.XI. Development and implementation of market value management systems and valuation

enhancement plans

Whether the company has established a market value management system

□ Yes √ No

Whether the company has disclosed its valuation enhancement plan

√Yes □ No

On February 27 2025 the company held the 33rd meeting of its ninth board of directors which reviewed approved and

disclosed the "Company Valuation Enhancement Plan." During the reporting period the company focused on its core

responsibilities and businesses focusing on efficiency improvements to continuously break multiple historical records. It

focused on enhancing the technological value-added content of high-end products persisted in empowering technology

to accelerate the upgrade and transformation of intelligent production lines addressed shortcomings adjusted its structure

and improved the level of quality and efficiency while focusing on green transformation and accelerating the ultra-low

emission certification process. These measures have helped improve operational efficiency and profitability. The company

actively implemented its high-quality development goals established a scrap steel company to improve both asset quality

and efficient resource allocation and continued to advance major asset restructuring. The company adhered to its investor

service philosophy and expanded investor communication channels. It added an investor hotline and established an

investor communication email address. The "Interactive e" platform achieved a 100% response rate. The company

conducted nine investor communication activities hosted 11 research organizations for research and visits and held

annual performance briefings promoting regular performance briefings. Adhering to the principles of "truthful accurate

28Bengang Steel Plates Co. Ltd. Interim Report 2025

complete timely and fair" information disclosure the company actively fulfilled its information disclosure obligations

completing 21 information disclosures in the first half of the year and disclosing 35 documents including periodic reports

and ESG reports. The company's stock price has risen and has temporarily escaped from the long-term negative net asset

value.XII. Implementation of the "Dual Improvement of Quality and Return" Action Plan

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

□ Yes √ No

29Bengang Steel Plates Co. Ltd. Interim Report 2025

IV. Corporate Governance Environment and Society

I. Change of Directors Supervisors and Senior Executives

√Applicable □ Not applicable

Name Position Type of change Date Reason

Liu Zhangman Deputy General Manager Dismissed 28-Mar-25 Job transfer

Li Zhiwei Deputy General Manager Appointed 28-Mar-25 Job transfer

Wei Chunxin Deputy General Manager Appointed 28-Mar-25 Job transfer

Resigned upon expiry

Zhang Suxun Independent Director 25-Apr-25 Re-election

of term

Zhong Tianli Independent Director Resigned 25-Apr-25 Re-election

Zhang Guangning Independent Director Elected 25-Apr-25 Re-election

Wu Li Independent Director Elected 25-Apr-25 Re-election

II. Profit Distribution or Capital Reserve Conversion into Share Capital in the

Reporting Period

□ Applicable √ Not applicable

The company plans not to distribute cash dividends issue bonus shares or increase capital by

converting reserves in the first half of the year.III. Implementation of the company’s equity incentive plan employee stock

ownership plan or other employee incentive measures

□ Applicable √ Not applicable

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

or other employee incentive measures and their implementation.IV. 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

12

information

Number Company name Link to environmental information disclosures

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

1 https://sthj.deing.cn:8180/home/public

Rolling Area)

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

2 https://sthj.deing.cn:8180/home/public Rolling Area)

3 Benxi Iron & Steel Co. Ltd. Steelmaking Plant https://sthj.deing.cn:8180/home/public

4 Benxi Iron & Steel Co. Ltd. Ironmaking Plant https://sthj.deing.cn:8180/home/public

Benxi Iron & Steel Co. Ltd. General Ironmaking Plant

5 https://sthj.deing.cn:8180/home/public

(Raw Material Branch)

30Bengang Steel Plates Co. Ltd. Interim Report 2025

Benxi Iron & Steel Co. Ltd. Coking Plant (Main Plant

6 https://sthj.deing.cn:8180/home/public

Area)

7 Benxi Iron & Steel Co. Ltd. Special Steel Plant https://sthj.deing.cn:8180/home/public

Benxi Iron & Steel Co. Ltd. Energy Control Center (Power

8 https://sthj.deing.cn:8180/home/public Generation Area)

Benxi Iron & Steel Co. Ltd. Energy Control Center

9 https://sthj.deing.cn:8180/home/public (General Energy Plant Area)

10 Bengang Pohang Heading Steel Co. Ltd. https://sthj.deing.cn:8180/home/public

Benxi Iron & Steel Co. Ltd. Coking Plant (Dongfeng Plant

11 https://sthj.deing.cn:8180/home/public

Area)

Benxi Iron & Steel Co. Ltd. General Ironmaking Plant

12 https://sthj.deing.cn:8180/home/public

(Raw Material Branch)

V. Social responsibility

In the first half of 2025 the Company organized 95 volunteer service activities with a total of 760

volunteer participations. A total of 381 employees participated in voluntary blood donations contributing

106630 milliliters of blood and 10 therapeutic doses of platelets.

The Company’s village-assigned cadres closely aligned with the rural revitalization strategy focused on

industrial assistance as the core and livelihood improvement as the priority and steadily advanced

various support initiatives in Shihuzi Village promoting the upgrading of the rice industry. In

coordination with Yunhong Food Co. Ltd. the Company facilitated the purchase of 21 tons of rice from

Shihuzi Village helping villagers achieve sales revenue of RMB 71.4 thousand effectively extending

the agricultural product value chain. In partnership with provincial-level media the Company carried outinitiatives to support farmers organizing the participation of the village’s first secretary the “twocommittees” and corporate representatives in the Liaoning Economic Radio live program Treasure

Liaoning. The program promoted Shihuzi Village’s specialty agricultural products such as rice and

blueberries to audiences across the province fully showcasing Benxi Steel’s assistance achievements

and the village’s development journey and effectively enhancing product recognition.

31Bengang Steel Plates Co. Ltd. Interim Report 2025

V. Important Events

I. Commitments Fulfilled During the Reporting Period and Commitments

Overdue but Unfulfilled as of the End of the Reporting Period by the Company’s

Actual Controller Shareholders Related Parties Acquirers and Other

Commitment-Related Parties

√ Applicable □ Not applicable

Commitment Type of Commitment Commitment

Commitments party commitment Contents time period Performance

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

regulations of the China

Securities Regulatory

Commission on the

Commitments independence of listed

made in companies and will not use

acquisition its controlling position to

reports or interfere with the standardized

equity change operation of Bengang Plates

reports Ansteel Other interfere with the business

Group Co. commitment decisions of Bengang Plates Aug 20 Long term In progress

Commitments Ltd. 2021 s or damage the legitimate

made in rights and interests of

acquisition Bengang Plates and other

reports or shareholders. Ansteel Group

equity change and its controlled subsidiaries

reports guarantee not to illegally

Commitments occupy the funds of Bengang

made in Plates and its controlled

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

equity change remain valid during the period

reports when Ansteel Group has

control over Bengang Plates.If Ansteel Group fails to

fulfill the above commitments

and causes losses to Bengang

Plates Ansteel Group will

bear the corresponding

compensation liability.To avoid horizontal

Ansteel competition Ansteel Group Other

Group Co. undertakes as follows: (1) Aug 20 commitment Long term In progress

Ltd. With regard to the overlap of 2021 s

some businesses between

Ansteel Group and Bengang

32Bengang Steel Plates Co. Ltd. Interim Report 2025

Plates after the completion of

this acquisition in accordance

with the requirements of

current laws regulations and

relevant policies Ansteel

Group will within 5 years

from the date of this letter of

commitment and strive to

achieve the same within a

shorter period of time in

accordance with the

requirements of relevant

securities regulatory

authorities and on the

premise of complying with the

laws regulations and relevant

regulatory rules applicable at

that time and in line with the

principle of benefiting the

development of Bengang

Plates and safeguarding the

interests of shareholders

especially the interests of

small and medium-sized

shareholders steadily promote

the integration of related

businesses to resolve

horizontal competition by

comprehensively using a

variety of methods such as

asset restructuring business

adjustments and entrusted

management. The above

solutions include but are not

limited to: 1) Asset

restructuring: adopt different

methods permitted by relevant

laws and regulations such as

cash consideration or issuance

of shares to purchase assets

asset replacement asset

transfer or other feasible

restructuring methods

gradually sort out and

reorganize the assets of

Ansteel Group and Bengang

Plate with overlapping

businesses and eliminate the

overlap of some businesses; 2)

Business adjustment: sort out

the business 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

33Bengang Steel Plates Co. Ltd. Interim Report 2025

group; 3) Entrusted

management: by signing an

entrustment agreement one

party fully entrusts the

decision-making power and

management power involved

in the operation of some

relevant assets with

overlapping businesses to the

other party for unified

management; 4) Other

feasible solutions within the

scope permitted by laws

regulations and relevant

policies. The implementation

of the above solutions is

subject to the necessary

review procedures for listed

companies the approval

procedures of securities

regulatory authorities and

relevant competent authorities

in accordance with relevant

laws and regulations. (2)

Ansteel Group has not yet

formulated a specific

implementation plan and time

schedule for resolving the

issue of overlap between some

of the businesses of Ansteel

Group and Bengang Plates.Ansteel Group will promptly

fulfill its information

disclosure obligations in

accordance with the

requirements of relevant laws

and regulations after

formulating a specific and

feasible plan; (3) In addition

to the above circumstances

when Ansteel Group or other

subsidiaries obtain business

opportunities that may

compete with the business of

Bengang Plates Ansteel

Group will make every effort

to give Bengang Plates

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

34Bengang Steel Plates Co. Ltd. Interim Report 2025

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

independent business and

complete assets and has

independent and complete

production supply sales and

other supporting systems. 2.Ansteel Group and other

enterprises controlled by

Ansteel Group will not use

their control over Bensteel

Ansteel Plates to seek priority in Other

Group Co. transactions with Bensteel Aug 20 commitment

Ltd. Plates and its subsidiaries. 3.Long term In progress

2021

s 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

35Bengang Steel Plates Co. Ltd. Interim Report 2025

requirements of relevant laws

regulations and normative

documents and the provisions

of the Articles of Association

of Bensteel Plates Co. Ltd.they will perform information

disclosure obligations and

relevant internal decision-

making and approval

procedures in accordance with

the law and ensure that they

will not trade with Bensteel

Plates and its subsidiaries

under conditions that are

obviously unfair compared to

market prices and will not use

such transactions to engage in

any behavior that damages the

legitimate rights and interests

of Bensteel Plates and other

shareholders of Bensteel

Plates. 4. If the above

commitments are violated and

the legitimate rights and

interests of Bengang Plate are

damaged Ansteel Group will

compensate Bengang Plate for

the losses caused thereby in

accordance with the law.According to the relevant

regulations of the China

Securities Regulatory

Commission all directors and

senior management of the

Company have made the

following commitments to the

Company’s fulfillment of the

diluted immediate return

measures: 1. I promise to

perform my duties faithfully

and diligently and safeguard

the legitimate rights and

Company

interests of the Company and

Commitment directors

all shareholders . 2. I promise

made during senior Other not to deliver benefits to other May 22

initial public management/ commitment Long term In progress units or individuals without 2019

offering or Benxi Steel s compensation or under unfair

refinancing Group Co. conditions nor to use other

Ltd.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

36Bengang Steel Plates Co. Ltd. Interim Report 2025

and authority I promise to

make every effort to promote

the company's board of

directors or the remuneration

system established by the

remuneration and appraisal

committee to be linked to the

implementation of the

company's compensation

measures and vote in favor of

the relevant proposals

reviewed by the company's

board of directors and general

meeting (If I have voting

rights). 6. If the company

intends to implement equity

incentives I promise to

within my own

responsibilities and

jurisdiction make every effort

to promote the Company’s

proposed equity incentive

exercise conditions to be

linked to the Company’s

implementation of the return

measures and to review the

Company’s board of directors

and shareholders’ general

meetings and vote in favor of

the relevant proposals

reviewed by the company's

board of directors and general

meeting (If I have voting

rights). 7. If the future

issuance of this commitment

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

37Bengang Steel Plates Co. Ltd. Interim Report 2025

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

recently completed the

registration of foreign trade

operators and considering

that the qualification level

certification of raw material

suppliers and customs import

and export qualification level

certification still need to be

gradually improved it lacks

the actual conditions and

capabilities to independently

carry out import and export

business in the short term. In

order to ensure the normal

business development of

Bengang Steel Plates Co.Ltd. the Group agrees that

Bengang International Trade

Bengang Co. Ltd. will continue to act

Group Co.Other as the agent for the main

Ltd. and

commitment import and export business of

Benxi Steel Bengang Steel Plates Co. Ltd.July 242019 Long term In progress

s

Group Co. within a period of no more

Ltd. 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

38Bengang Steel Plates Co. Ltd. Interim Report 2025

People's Court of Changning

District Shanghai issued an

announcement to appoint

Grandall Law Firm

(Shanghai) as the bankruptcy

administrator. After

communicating with the

bankruptcy administrator the

relevant procedures for the

cancellation of Shanghai

Bengang Steel Sales Co. Ltd.will be handled immediately

after the completion of the

aforementioned bankruptcy

liquidation procedures. (2)

Shanghai Bengang Steel

Materials Co. Ltd. is a

holding subsidiary of

Shanghai Bengang Steel

Trading Co. Ltd. and was

cancelled in November 2020.

(3) Guangzhou Bonded Zone

Bengang Sales Co. Ltd. was

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

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

Bengang the Group except Bengang

Group Co. Plate will no longer produce

Other

Ltd. and or develop any products that

commitment

Benxi Steel compete or may compete with

July 242019 Long term In progress

s

Group Co. the products produced by

Ltd. 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

39Bengang Steel Plates Co. Ltd. Interim Report 2025

scope the Group and other

enterprises controlled by the

Group will not compete with

the expanded business of

Bengang Plates and its

subsidiaries; if there is a

possibility of competition

with the expanded business of

Bengang Plates and its

subsidiaries they will

withdraw from the

competition with Bengang

Plates in the following ways:

(1) stop the business that

competes or may compete

with Bengang Plates and its

subsidiaries; (2) incorporate

the competing business into

Bengang Plates and its

subsidiaries in a legal and

compliant manner; (3) transfer

the competing business to an

unrelated third party. 3. If the

Group has any business

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.Bengang Other Benxi Steel Group Co. Ltd.Group Co. commitment and Bengang Group Co. Ltd. (hereinafter collectively July 242019 Long term In progress

Ltd. and s referred to as "the Group") as

40Bengang Steel Plates Co. Ltd. Interim Report 2025

Benxi Steel the direct and indirect

Group Co. controlling shareholders of

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

"Bengang Plate") hereby

promise to regulate the related

transactions between the

Group and Bengang Plate: 1.The Group will fully respect

the independent legal person

status of Bengang Plate

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

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

41Bengang Steel Plates Co. Ltd. Interim Report 2025

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

Commitment

Yes

fulfilled on

time or not

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

shareholders and other related parties

□ Applicable √ Not applicable

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

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

□ Applicable √ Not applicable

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

Is the interim financial report audited

□ Yes √ No

The interim report has not been audited.V. Illustrations of the Board of Directors and Supervisory Committee on the

Modified Audit Report Issued by the CPAs

□ Applicable √ Not applicable

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

the CPAs for Previous Reporting Period

□ Applicable √ Not applicable

Ⅶ. Bankrupt and Reforming Events

□ Applicable √ Not applicable

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

Significant lawsuits and arbitrations

42Bengang Steel Plates Co. Ltd. Interim Report 2025

□ Applicable √ Not applicable

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

√ Applicable □ Not applicable

Amount Results and

Whether Execution of

Basic information involved Progress in effects of the

estimated the litigation Disclosure Disclosure

of litigation (ten litigation litigation

liability is (arbitration) date index

(arbitration) thousand (arbitration) (arbitration)

formed judgment

yuan) trial

Summary of

matters that the

company does not In

To be

meet the disclosure 754.56 No In the trial accordance

concluded

standards of with the law

material litigation

(arbitration)

IX. Punishment and Rectification

□ Applicable √ Not applicable

The Company had no penalties or rectification cases during the reporting period.X. Credit Status of the Company and its Controlling Shareholders and Actual

Controllers

□ Applicable √ Not applicable

43Bengang Steel Plates Co. Ltd. Interim Report 2025

XI. Major Related Party Transactions

1. Related party transactions relevant to daily operations

√ Applicable □ Not applicable

Amo

Pricin unt The

Appro Whet Settle

g of Propor marke

Relate ved her ment

princi Relate Affili tion of t price

d transa the metho

ples d ated the of

Relate Relati Trans party ction appro d of Disclo Disclo

of party Trans amoun simila

d onshi action transa amou ved relate sure sure

relate transa actio t of r

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

d ction n (ten similar transa

conte thousa is party

party price thous transac ctions

nt nd excee transa

transa and tions availa

yuan) ded ctions

ctions Yuan ble

)

Anste

Purch

el Procu

Also asing Relate

Scrap remen Accor

belon goods d-

Resou t of Marke ding Dec

g to / Party 3627 3093 2024-

rces major t 1.43% No to the Yes 06

Anste provid Agree 4.75 60 067

(Ansh raw value agree 2024

el e ment

an) materi ment

Group servic Price

Co. als

es

Ltd

Purch

Procu

Anste Also asing Relate

remen Accor

el belon goods d-

t of Marke ding Dec

Group g to / Party 7828 8385 2024-

major t 0.31% No to the Yes 06

Minin Anste provid Agree .30 0 067

raw value agree 2024

g Co. el e ment

materi ment

LTD Group servic Price

als

es

Purch

Ansha Procu

Also asing Relate

n Iron remen Accor

belon goods d-

and t of Marke ding Dec

g to / Party 2024-

Steel major t 47.9 0.00% 228.3 No to the Yes 06

Anste provid Agree 067

Group raw value agree 2024

el e ment

Co. materi ment

Group servic Price

Ltd als

es

Benxi

Beiyi Purch

Procu

ng Also asing Relateremen Accor

Iron belon goods d- t of Marke 1312 ding Dec

and g to / Party 6576 25.85 2024-major t 173.8 No to the Yes 06

Steel Benga provid Agree 72.33 % 067 raw value 1 agree 2024

(Grou ng e ment materi ment

p) Group servic Price als

Co. es

LTD

Benxi Purch

Procu

Iron asing Relate

remen Accor

and Same goods d-

t of Marke ding Dec

Steel parent / Party 345.8 1020 2024-

major t 0.01% No to the Yes 06

(Grou comp provid Agree 6 0 067

raw value agree 2024

p) any e ment

materi ment

Machi servic Price

als

nery es

44Bengang Steel Plates Co. Ltd. Interim Report 2025

Manu

facturi

ng

Co.Ltd.Benxi

Iron Purch

Procu

and asing Relate

remen Accor

Steel Same goods d-

t of Marke ding Dec

(Grou parent / Party 4135 2400 2024-

major t 0.16% No to the Yes 06

p) comp provid Agree .57 6.08 067

raw value agree 2024

Const any e ment

materi ment

ructio servic Price

als

n Co. es

Ltd

Benxi

Purch

Iron Procu

asing Relate

and remen Accor

Same goods d-

Steel t of Marke ding Dec

parent / Party 3256 12.80 7452 2024-

(Grou major t No to the Yes 06

comp provid Agree 55.66 % 44 067

p) raw value agree 2024

any e ment

Minin materi ment

servic Price

g Co. als

es

LTD

Benxi

Iron

and Purch

Procu

Steel asing Relate

remen Accor

(Grou Same goods d-

t of Marke ding Dec

p) parent / Party 315.7 2024-

major t 0.01% 1000 No to the Yes 06

Equip comp provid Agree 5 067

raw value agree 2024

ment any e ment

materi ment

Engin servic Price

als

eering es

Co.LTD

Benxi

Iron

and

Purch

Steel Procu

asing Relate

(Grou remen Accor

Same goods d-

p) t of Marke ding Dec

parent / Party 1366 3740 2024-

Indust major t 0.54% No to the Yes 06

comp provid Agree 3.19 0 067

rial raw value agree 2024

any e ment

Devel materi ment

servic Price

opme als

es

nt

Co.LTD

Benxi Purch

Procu

Steel asing Relate

remen Accor

and goods d-

Parent t of Marke ding Dec

Iron / Party 2024-

comp major t 38.97 0.00% 900 No to the Yes 06

(Grou provid Agree 067

any raw value agree 2024

p) e ment

materi ment

Co. servic Price

als

Ltd. es

Anga Also Purch Procu Relate Accor

Marke Dec

ng belon asing remen d- 320.5 ding 2024-

t 0.01% 2500 No Yes 06

Steel g to goods t of Party 1 to the 067

value 2024

Comp Anste / auxili Agree agree

45Bengang Steel Plates Co. Ltd. Interim Report 2025

any el provid ary ment ment

Limit Group e materi Price

ed servic als

es

Anga

ng

Group Purch

Procu

Engin Also asing Relate

remen Accor

eering belon goods d-

t of Marke ding Dec

Techn g to / Party 905.6 1957. 2024-

auxili t 0.04% No to the Yes 06

ology Anste provid Agree 9 20 067

ary value agree 2024

Devel el e ment

materi ment

opme Group servic Price

als

nt es

Co.LTD

Benst

eel

Group Purch

Procu

Intern Also asing Relate

remen Accor

ationa belon goods d-

t of Marke ding Dec

l g to / Party 1120 2024-

auxili t 58.27 0.00% No to the Yes 06

Econo Anste provid Agree 0 067

ary value agree 2024

mic el e ment

materi ment

and Group servic Price

als

Trade es

Co.LTD

Anste

el

Group Purch

Procu

Zhong Also asing Relate

remen Accor

yuan belon goods d-

t of Marke ding Dec

Indust g to / Party 706.1 2024-

auxili t 0.03% 1500 No to the Yes 06

rial Anste provid Agree 3 067

ary value agree 2024

Devel el e ment

materi ment

opme Group servic Price

als

nt es

Co.LTD

Purch

Ansha Procu

Also asing Relate

n Iron remen Accor

belon goods d-

and t of Marke ding Dec

g to / Party 1586 4212 2024-

Steel auxili t 0.62% No to the Yes 06

Anste provid Agree 5.46 3.75 067

Group ary value agree 2024

el e ment

Co. materi ment

Group servic Price

Ltd als

es

Benxi

Beiyi Purch

Procu

ng Also asing Relateremen Accor

Iron belon goods d- t of Marke ding Dec

and g to / Party 492.9 4001. 2024-auxili t 0.02% No to the Yes 06

Steel Benga provid Agree 7 54 067 ary value agree 2024

(Grou ng e ment materi ment

p) Group servic Price als

Co. es

LTD

Benxi Same Purch Procu Marke Relate Accor Dec

186234652024-

Iron parent asing remen t d- 0.73% No ding Yes 06

7.700.12067

and comp goods t of value Party to the 2024

46Bengang Steel Plates Co. Ltd. Interim Report 2025

Steel any / auxili Agree agree

(Grou provid ary ment ment

p) e materi Price

Machi servic als

nery es

Manu

facturi

ng

Co.LTD

Benxi

Iron Purch

Procu

and asing Relate

remen Accor

Steel Same goods d-

t of Marke ding Dec

(Grou parent / Party 2024-

auxili t 785.8 0.03% 1600 No to the Yes 06

p) comp provid Agree 067

ary value agree 2024

Const any e ment

materi ment

ructio servic Price

als

n Co. es

Ltd

Benxi

Iron

and Purch

Procu

Steel asing Relate

remen Accor

(Grou Same goods d-

t of Marke ding Dec

p) parent / Party 4829 1400 2024-

auxili t 0.19% No to the Yes 06

Equip comp provid Agree .21 0 067

ary value agree 2024

ment any e ment

materi ment

Engin servic Price

als

eering es

Co.LTD

Benxi

Iron

and

Purch

Steel Procu

asing Relate

(Grou remen Accor

Same goods d-

p) t of Marke ding Dec

parent / Party 9165 2314 2024-

Indust auxili t 0.36% No to the Yes 06

comp provid Agree .36 3.12 067

rial ary value agree 2024

any e ment

Devel materi ment

servic Price

opme als

es

nt

Co.LTD

Benxi Purch

Procu

Steel asing Relate

remen Accor

and goods d-

Parent t of Marke ding Dec

Iron / Party 1136 2357 2024-

comp auxili t 0.45% No to the Yes 06

(Grou provid Agree 2.89 1.90 067

any ary value agree 2024

p) e ment

materi ment

Co. servic Price

als

Ltd. es

Purch

Procu

Also asing Relate

Panga remen Accor

belon goods d-

ng t of Marke ding Dec

g to / Party 347.4 2024-

Group auxili t 0.01% 1000 No to the Yes 06

Anste provid Agree 2 067

Co. ary value agree 2024

el e ment

Ltd materi ment

Group servic Price

als

es

47Bengang Steel Plates Co. Ltd. Interim Report 2025

Purch

Other Procu

Also asing Relate

subsid remen Accor

belon goods d-

iaries t of Marke ding Dec

g to / Party 1328 2700 2024-

of auxili t 0.52% No to the Yes 06

Anste provid Agree 7.71 0 067

Anste ary value agree 2024

el e ment

el materi ment

Group servic Price

Group als

es

Benxi

Beiyi Purch

ng Also asing Relate

Purch Accor

Iron belon goods d-

ase Marke ding Dec

and g to / Party 3566 6338 2024-

energ t 1.40% No to the Yes 06

Steel Benga provid Agree 7.28 2.58 067

y value agree 2024

(Grou ng e ment

power ment

p) Group servic Price

Co. es

LTD

Benxi Purch

Steel asing Relate

Purch Accor

and goods d-

Parent ase Marke ding Dec

Iron / Party 2024-

comp energ t 11.29 0.00% 23 No to the Yes 06

(Grou provid Agree 067

any y value agree 2024

p) e ment

power ment

Co. servic Price

Ltd. es

Anga

ng

Group Purch

Engin Also asing Accep Relate Accor

eering belon goods t d- Marke ding Dec

Techn g to / suppo Party 1074 2024-t 0.04% 5200 No to the Yes 06

ology Anste provid rtive Agree .75 067 value agree 2024

Devel el e servic ment ment

opme Group servic es Price

nt es

Co.LTD

Benst

eel

Group Purch

Intern Also asing Accep Relate Accor

ationa belon goods t d- Marke ding Dec

l g to / suppo Party 1802 2024-t 0.07% 3900 No to the Yes 06

Econo Anste provid rtive Agree .83 067 value agree 2024

mic el e servic ment ment

and Group servic es Price

Trade es

Co.LTD

Anste

el

Purch

Group

Also asing Accep Relate

Zhong Accor

belon goods t d-

yuan Marke ding Dec

g to / suppo Party 814.4 2024-

Indust t 0.03% 2330 No to the Yes 06

Anste provid rtive Agree 4 067

rial value agree 2024

el e servic ment

Devel ment

Group servic es Price

opme

es

nt

Co.

48Bengang Steel Plates Co. Ltd. Interim Report 2025

LTD

Purch

Anste Also asing Accep Relate

Accor

el belon goods t d-

Marke ding Dec

Auto g to / suppo Party 2024-

t 160 0.01% 500 No to the Yes 06

matio Anste provid rtive Agree 067

value agree 2024

n Co. el e servic ment

ment

LTD Group servic es Price

es

Purch

Ansha

Also asing Accep Relate

n Iron Accor

belon goods t d-

and Marke ding Dec

g to / suppo Party 4420 2657 2024-

Steel t 0.17% No to the Yes 06

Anste provid rtive Agree .99 7.47 067

Group value agree 2024

el e servic ment

Co. ment

Group servic es Price

Ltd

es

Benst

eel

Group Purch

Intern Also asing Accep Relate Accor

ationa belon goods t d- Marke ding Dec

l g to / suppo Party 344.1 975.7 2024-t 0.01% No to the Yes 06

Econo Benga provid rtive Agree 4 6 067 value agree 2024

mic ng e servic ment ment

and Group servic es Price

Trade es

Co.LTD

Contr Purch

olling asing Accep Relate

Ben Accor

shareh goods t d-

Steel Marke ding Dec

older / suppo Party 1431 3200 2024-

Group t 0.56% No to the Yes 06

of the provid rtive Agree 2.93 0 067

Co. value agree 2024

parent e servic ment

Ltd ment

comp servic es Price

any es

Benxi

Beiyi Purch

ng Also asing Accep Relate Accor

Iron belon goods t d- Marke ding Dec

and g to / suppo Party 5731 1229 2024-t 0.23% No to the Yes 06

Steel Benga provid rtive Agree .78 4.20 067 value agree 2024

(Grou ng e servic ment ment

p) Group servic es Price

Co. es

LTD

Benxi

Purch

Steel

Also asing Accep Relate

and Accor

belon goods t d-

Iron( Marke ding Dec

g to / suppo Party 2844 6000 2024-

Group t 1.12% No to the Yes 06

Anste provid rtive Agree 8.18 0 067

)Teng value agree 2024

el e servic ment

da ment

Group servic es Price

Co.Lt

es

d.Benxi Purch Accep Relate Accor

Same

Iron asing t Marke d- ding Dec

parent 4945 1332 2024-

and goods suppo t Party 0.19% No to the Yes 06

comp .69 0.43 067

Steel / rtive value Agree agree 2024

any

(Grou provid servic ment ment

49Bengang Steel Plates Co. Ltd. Interim Report 2025

p) e es Price

Machi servic

nery es

Manu

facturi

ng

Co.LTD

Benxi

Iron Purch

and asing Accep Relate Accor

Steel Same goods t d- Marke ding Dec

(Grou parent / suppo Party 1579 3943 2024-t 0.62% No to the Yes 06

p) comp provid rtive Agree 9.52 4.92 067 value agree 2024

Const any e servic ment ment

ructio servic es Price

n Co. es

Ltd

Benxi

Iron

and Purch

Steel asing Accep Relate Accor

(Grou Same goods t d- Marke ding Dec

p) parent / suppo Party 3189 1139 2024-t 1.25% No to the Yes 06

Equip comp provid rtive Agree 6.44 37.73 067 value agree 2024

ment any e servic ment ment

Engin servic es Price

eering es

Co.LTD

Benxi

Iron

and

Purch

Steel

asing Accep Relate

(Grou Accor

Same goods t d-

p) Marke ding Dec

parent / suppo Party 782.9 2024-

Indust t 0.03% 2300 No to the Yes 06

comp provid rtive Agree 4 067

rial value agree 2024

any e servic ment

Devel ment

servic es Price

opme

es

nt

Co.LTD

Benxi Purch

Steel asing Accep Relate Accor

and goods t d-

Parent Marke ding Dec

Iron / suppo Party 2876 8818. 2024-

comp t 0.11% No to the Yes 06

(Grou provid rtive Agree .63 12 067

any value agree 2024

p) e servic ment ment

Co. servic es Price

Ltd. es

Delin

Land Purch

Port Also asing Accep Relate Accor

Suppl belon goods t d- Marke ding Dec

y g to / suppo Party 2024-t 55.69 0.00% 627.4 No to the Yes 06

Chain Anste provid rtive Agree 067 value agree 2024

Servic el e servic ment ment

es Group servic es Price

Co. es

Ltd

50Bengang Steel Plates Co. Ltd. Interim Report 2025

Purch

Also asing Accep Relate

Panga Accor

belon goods t d-

ng Marke ding Dec

g to / suppo Party 2024-

Group t 30 0.00% 100 No to the Yes 06

Anste provid rtive Agree 067

Co. value agree 2024

el e servic ment

Ltd ment

Group servic es Price

es

Purch

Other

Also asing Accep Relate

subsid Accor

belon goods t d-

iaries Marke ding Dec

g to / suppo Party 1591 2943 2024-

of t 0.63% No to the Yes 06

Anste provid rtive Agree 7.85 3.12 067

Anste value agree 2024

el e servic ment

el ment

Group servic es Price

Group

es

Sellin

Anga

Also g Relate

ng Accor

belon goods d-

Steel Sellin Marke ding Dec

g to / Party 396.7 2856 2024-

Comp g t 0.02% No to the Yes 06

Anste provid Agree 8 00 067

any goods value agree 2024

el ing ment

Limit ment

Group servic Price

ed

es

Anste Sellin

el Also g Relate Accor

Chem belon goods d-

Sellin Marke ding Dec

ical g to / Party 1360 3000 2024-

g t 0.55% No to the Yes 06

Techn Anste provid Agree 3.24 0 067

goods value agree 2024

ology el ing ment ment

Co. Group servic Price

Ltd es

Anga

ng

Group Sellin

Engin Also g Relate Accor

eering belon goods d-

Sellin Marke ding Dec

Techn g to / Party 2024-

g t 0.03 0.00% 500 No to the Yes 06

ology Anste provid Agree 067

goods value agree 2024

Devel el ing ment ment

opme Group servic Price

nt es

Co.LTD

Anste

el

Group Sellin

Zhong Also g Relate Accor

yuan belon goods d-

Sellin Marke ding Dec

Indust g to / Party 519.3 9894. 2024-

g t 0.02% No to the Yes 06

rial Anste provid Agree 9 17 067

goods value agree 2024

Devel el ing ment ment

opme Group servic Price

nt es

Co.LTD

Anste Also Sellin Relate Accor

el belon g Sellin Marke d- ding Dec

15442024-

Resou g to goods g t Party 0.06% 9340 No to the Yes 06.30067

rces Anste / goods value Agree agree 2024

Co. el provid ment ment

51Bengang Steel Plates Co. Ltd. Interim Report 2025

Ltd Group ing Price

servic

es

Sellin

Ansha

Also g Relate

n Iron Accor

belon goods d-

and Sellin Marke ding Dec

g to / Party 1202 4806 2024-

Steel g t 0.49% No to the Yes 06

Anste provid Agree 7.09 0 067

Group goods value agree 2024

el ing ment

Co. ment

Group servic Price

Ltd

es

Benxi

Beiyi Sellin

ng Also g Relate Accor

Iron belon goods d-

Sellin Marke ding Dec

and g to / Party 2962 1133 2024-

g t 1.20% No to the Yes 06

Steel Benga provid Agree 3.20 75.52 067

goods value agree 2024

(Grou ng ing ment ment

p) Group servic Price

Co. es

LTD

Benxi

Iron

and

Sellin

Steel

g Relate

(Grou Accor

Same goods d-

p) Sellin Marke ding Dec

parent / Party 3031 1556 2024-

Machi g t 0.12% No to the Yes 06

comp provid Agree .30 0.67 067

nery goods value agree 2024

any ing ment

Manu ment

servic Price

facturi

es

ng

Co.LTD

Benxi

Iron Sellin

and g Relate Accor

Steel Same goods d-

Sellin Marke ding Dec

(Grou parent / Party 163.5 782.7 2024-

g t 0.01% No to the Yes 06

p) comp provid Agree 9 3 067

goods value agree 2024

Const any ing ment ment

ructio servic Price

n Co. es

Ltd

Benxi

Sellin

Iron

g Relate

and Accor

Same goods d-

Steel Sellin Marke ding Dec

parent / Party 1281 3045 2024-

(Grou g t 0.52% No to the Yes 06

comp provid Agree 3.94 8.89 067

p) goods value agree 2024

any ing ment

Minin ment

servic Price

g Co.es

LTD

Benxi Sellin

Iron g Relate Accor

and Same goods d-

Sellin Marke ding Dec

Steel parent / Party 163.1 2024-

g t 0.01% 1000 No to the Yes 06

(Grou comp provid Agree 2 067

goods value agree 2024

p) any ing ment ment

Equip servic Price

ment es

52Bengang Steel Plates Co. Ltd. Interim Report 2025

Engin

eering

Co.LTD

Benxi

Iron

and

Sellin

Steel

g Relate

(Grou Accor

Same goods d-

p) Sellin Marke ding Dec

parent / Party 5993 1905 2024-

Indust g t 0.24% No to the Yes 06

comp provid Agree .20 0 067

rial goods value agree 2024

any ing ment

Devel ment

servic Price

opme

es

nt

Co.LTD

Benxi Sellin

Steel g Relate Accor

and goods d-

Parent Sellin Marke ding Dec

Iron / Party 3509 1648 2024-

comp g t 0.14% No to the Yes 06

(Grou provid Agree .33 4.66 067

any goods value agree 2024

p) ing ment ment

Co. servic Price

Ltd. es

Delin

Land Sellin

Port Also g Relate Accor

Suppl belon goods d-

Sellin Marke ding Dec

y g to / Party 1638 4172 2024-

g t 6.63% No to the Yes 06

Chain Anste provid Agree 27.08 98.97 067

goods value agree 2024

Servic el ing ment ment

es Group servic Price

Co. es

Ltd

Sellin

Also g Relate

Panga Accor

belon goods d-

ng Sellin Marke ding Dec

g to / Party 1559 2730 2024-

Group g t 0.06% No to the Yes 06

Anste provid Agree .40 0 067

Co. goods value agree 2024

el ing ment

Ltd ment

Group servic Price

es

Sellin

Other

Also g Relate

subsid Accor

belon goods d-

iaries Sellin Marke ding Dec

g to / Party 229.7 6654. 2024-

of g t 0.01% No to the Yes 06

Anste provid Agree 4 92 067

Anste goods value agree 2024

el ing ment

el ment

Group servic Price

Group

es

Sellin

Ansha

Also g Provi Relate

n Iron Accor

belon goods de d-

and Marke ding Dec

g to / suppo Party 9967. 2024-

Steel t 1.03 0.00% No to the Yes 06

Anste provid rtive Agree 20 067

Group value agree 2024

el ing servic ment

Co. ment

Group servic es Price

Ltd

es

Benxi Same Sellin Provi Marke Relate Accor Dec 2024-

13.21 0.00% 26.7 No Yes

Iron parent g de t d- ding 06 067

53Bengang Steel Plates Co. Ltd. Interim Report 2025

and comp goods suppo value Party to the 2024

Steel any / rtive Agree agree

(Grou provid servic ment ment

p) ing es Price

Machi servic

nery es

Manu

facturi

ng

Co.LTD

Benxi

Iron Sellin

and g Provi Relate Accor

Steel Same goods de d- Marke ding Dec

(Grou parent / suppo Party 2024-t 0.03 0.00% 0.2 No to the Yes 06

p) comp provid rtive Agree 067 value agree 2024

Const any ing servic ment ment

ructio servic es Price

n Co. es

Ltd

Benxi

Sellin

Iron

g Provi Relate

and Accor

Same goods de d-

Steel Marke ding Dec

parent / suppo Party 348.2 2024-

(Grou t 0.01% 543.5 No to the Yes 06

comp provid rtive Agree 1 067

p) value agree 2024

any ing servic ment

Minin ment

servic es Price

g Co.es

LTD

Benxi

Iron

and

Sellin

Steel

g Provi Relate

(Grou Accor

Same goods de d-

p) Marke ding Dec

parent / suppo Party 2024-

Indust t 2.17 0.00% 4.6 No to the Yes 06

comp provid rtive Agree 067

rial value agree 2024

any ing servic ment

Devel ment

servic es Price

opme

es

nt

Co.LTD

Benxi Sellin

Steel g Provi Relate Accor

and goods de d-

Parent Marke ding Dec

Iron / suppo Party 2024-

comp t 2.45 0.00% 5 No to the Yes 06

(Grou provid rtive Agree 067

any value agree 2024

p) ing servic ment ment

Co. servic es Price

Ltd. es

15374169

Total 198. -- 672.2 -- -- -- -- --

68

Details of large sales returns Not applicable

Actual performance of the estimated total amount of daily

related transactions to occur in the current period during the Not applicable

reporting period by category (if any)

Reason for any significant difference between the Not applicable

transaction price and the market price for reference (if

54Bengang Steel Plates Co. Ltd. Interim Report 2025

applicable)

2. Related transactions relevant to asset acquisition or sold

□ Applicable √ Not applicable

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

3. Related transactions relevant to joint investments

□ Applicable √ Not applicable

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

4. Credits and liabilities with related parties

□ Applicable √ Not applicable

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

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

√ Applicable □ Not applicable

Deposit business

Current period

Maximum Total deposit Total deposit

Relationshi Deposit Beginning Ending daily deposit

Related party p interest rate balance (10

amount of amount of balance (10

limit (10

range thousand) the current the current thousand)

thousand) period (10 period (10

thousand) thousand)

Angang

Belong to

Group 0.65%- 4631120. 4730055.Ansteel 450000 122719.88 23784.99

Finance Co. 2.25% 89 78

Group

Ltd.Credit or other financial services

Related party Relationship Business type Amount (10 Actual amount (10 thousand) thousand)

Angang Group Finance Belong to Ansteel

Other financial services 41181.88 41181.88

Co. Ltd. Group

6. Transactions with related financial companies and related parties

□ Applicable √ Not applicable

There are no deposits loans credit facilities or other financial transactions between the related finance

company and related parties.

7. Other significant related party transactions

□ Applicable √ Not applicable

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

1. Trusteeship contracting and leasing matters

(1) Trusteeship

□ Applicable √ Not applicable

55Bengang Steel Plates Co. Ltd. Interim Report 2025

During the reporting period the Company had no trusteeship arrangements.

(2) Contracting

□ Applicable √ Not applicable

During the reporting period the Company had no contracting arrangements.

(3) Lease

√Applicable □ Not applicable

Details of lease

The Company as lessor:

Lease income Lease Income

Name of lessee Type of leased assets recognized in current Recognized in Prior

period Period

Benxi Iron and Steel (Group) Equipment Plant and auxiliary

Engineering Co. LTD equipment 670802.00

Benxi New Business Development Co. Ltd Plant and auxiliary equipment 24500.00

The Company as the lessee:

Current period Previous period

Rent

al

Variable fees Variable

Rental lease for lease

fees for payments Interest Increa short payments

Name of Type of short- not expense se in - not

Interest Increa

leased term included term included expense se in lessor assets leases in the Rent paid on lease right- Rent paid on lease right-

and low- measurem liabilities of-use

lease in the

s and measurem liabilities of-use

value ent of assumed assets low- ent of assumed assets

assets lease valu lease

liabilities e liabilities

asset

s

Land use

right

Benxi 7669068.Iron and 17 square

Steel meters 27638772 18502019.06 .80

2763877219500054.06.00

(Group) land use

Co. LTD right 42920.00

square

meters

Benxi 2300 hot

Iron and rolling mill

Steel production 8049080. 3348358. 8049080. 3870344.52 04 52 34

(Group) line

Co. LTD related real estate

Benxi 1780 hot

Beiying rolling mill

Iron and production 7175818. 2578717. 7175818. 2980721.Steel line 86 23 86 70

(Group) related

Co. LTD property

Land use

Ben Steel right is

Group 728282.30 4972711. 756809.43 4972711. 1224959.56 56 40

Co. Ltd square

meters

56Bengang Steel Plates Co. Ltd. Interim Report 2025

Ansteel

Group

Energy

Saving Machinery 828571.67 1400598. 12063482Technolo equipment 119211.50 59 .04

gy

Service

Co. LTD

Benxi

Iron and

Steel Transportat

(Group) ion 3470033.34

Construct equipment

ion Co.Ltd

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

□ Applicable √ Not applicable

During the reporting period of the company there is no leasing project that the profit and loss of the company

reaches more than 10% of the total profit of the company during the reporting period.

2. Major Guarantee

□ Applicable √ Not applicable

There was no guarantee during the reporting period.

3. Entrusted Finance

□ Applicable √ Not applicable

There was no entrusted finance during the reporting period.

4. Other Major Contracts

□ Applicable √ Not applicable

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

√ Applicable □ Not applicable

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

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

Benxi Iron and Steel (Group) Mining Co. Ltd. and intending to dispose of all assets and liabilities of

the listed company except for retained assets and liabilities. The difference between the assets to be

acquired and the assets to be disposed of shall be made up by one party to the other in cash. At present

the company is conducting further demonstration and communication and negotiation on the transaction

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

for deliberation.XIV. Major Events of Subsidiaries

√ Applicable □ Not applicable

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.

57Bengang Steel Plates Co. Ltd. Interim Report 2025

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.

58Bengang Steel Plates Co. Ltd. Interim 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

Quantity Percenta Issuing of Bonus ge new share shares common Others Subtotal Quantity

Percenta

reserve ge

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% 4048 4048 4108232205 100.00%

1. Common shares in

RMB 3708228157 90.26% 4048 4048 3708232205 90.26%

2. Foreign shares in

domestic market 400000000 9.74% 400000000 9.74%

3. Foreign shares in

oversea market

4.Others

III. Total shares 4108228157 100.00% 4048 4048 4108232205 100.00%

Reason for share capital changes

√Applicable □Not applicable

During the reporting period 160 of the company's publicly issued convertible corporate bonds were

converted into shares and the company's total share capital increased by 4048 shares.Approval of share capital changes

□ Applicable √ Not applicable

Status of registration process of transferred shares

□ Applicable √ Not applicable

Progress of Share Repurchase

□ Applicable √ Not applicable

Implementation Progress of Reducing Holdings of Repurchase Shares by Centralized Bidding

□ Applicable √ Not applicable

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

per share and net asset per share attributed to common shareholders

□ Applicable √ Not applicable

59Bengang Steel Plates Co. Ltd. Interim Report 2025

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

□ Applicable √ Not applicable

2. Changes of Restricted Shares

□Applicable √Not applicable

II. Securities Issuance and Listing

□Applicable √Not applicable

III. Total Number of shareholders and shareholding

Unit: Shares

The total number of

Total number of preferred shareholders

common shareholders voting rights restored at 0

at the end of the 46250 the end of the reporting

reporting period period (if any)(See

Notes 8)

Shareholdings of the top 10 shareholders (excluding shares loaned through refinancing)

Number of pledged or

Name of the Nature of Holding Number of Changes in shares held at reporting Restricted Un-restricted frozen shares shareholder shareholder Percentage period-end period shares held shares held Status Number

Benxi Steel & Iron State-owned

(Group) Co. Ltd. legal person 58.65% 2409628094 0 0 2409628094 Frozen 102100000

Bengang Group State-owned Not

Co. Ltd. legal person 17.95% 737371532 0 0 737371532 applicab 0 le

Guan Hui Domestic Not

natural person 0.68% 28000000 -213600 0 28000000 applicab 0 le

Zhang Wenyou Domestic Not

natural person 0.43% 17862365 -300000 0 17862365 applicab 0 le

China Merchants

Securities (HK) Co. Foreign legal

Not

person 0.39% 16011907 4243100 0 16011907 applicab 0

Ltd. le

Wu Tie Domestic Not

natural person 0.33% 13592351 12392351 0 13592351 applicab 0 le

Lyu Ruijun Domestic Not

natural person 0.30% 12289200 277760 0 12289200 applicab 0 le

Gao Tao Domestic Not

natural person 0.26% 10800000 -4700000 0 10800000 applicab 0 le

Ma Yonghua Domestic Not

natural person 0.24% 10033357 10900 0 10033357 applicab 0 le

Hong Kong Not

Securities Clearing Foreign legal person 0.24% 10021142 -860248 0 10021142 applicab 0

Company Limited le

Strategy investors or general legal

person becomes top 10 shareholders due None

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

Notes to relationship or ‘action in Benxi Steel & Iron (Group) Co. Ltd. has a related relationship with Bengang Group Co. Ltd.

60Bengang Steel Plates Co. Ltd. Interim Report 2025

concert’ among the top 10 shareholders. and is a concerted action person stipulated in the "Administrative Measures for 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 Regarding Changing of

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

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

rights and waiver of voting rights of voting rights.Special instructions for the existence of

special repurchase accounts among the

top 10 shareholders (if any) (see Note None

11)

Shareholding of top 10 unrestricted shareholders (excluding shares loaned through refinancing and shares locked up by senior executives)

Category of shares

Name of the shareholder Un-restricted shares held at 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 28000000 Common shares in RMB 28000000

Zhang Wenyou 17862365 Common shares in RMB 17862365

China Merchants Securities (HK) Co Ltd. 16011907 Foreign shares in domestic exchange 16011907

Wu Tie 13592351 Common shares in RMB 13592351

Lyu Ruijun 12289200 Foreign shares in domestic exchange 12289200

Gao Tao 10800000 Foreign shares in domestic exchange 10800000

Ma Yonghua 10033357 Foreign shares in domestic exchange 10033357

Hong Kong Securities Clearing Company

Limited 10021142 Common shares in RMB 10021142

Benxi Steel & Iron (Group) Co. Ltd. has a related relationship with Bengang Group Co.Notes to relationship or ‘action in concert’ Ltd. and is a concerted action person stipulated in the "Administrative Measures for the

among the top 10 non-restricted shareholders Acquisition of Listed Companies". It is unknown to the Company whether there is any

and among the top 10 non-restricted related connection or ‘Action in Concert’ as described by Rules of Information Disclosing

shareholders and top 10 shareholders Regarding Changing of Shareholding Status of Listed Companies existing among the

above shareholders.Guan Hui holds 28000000 shares of the Company's stock through an investor credit

securities account. Zhang Wenyou holds 5998 shares of the Company's stock through an

Shareholders among the top 10 participating in investor general account 17856367 shares of the Company's stock through an investor

securities margin trading (if any) (see Note 4) credit securities account. Wu Tie holds 7000000 shares of the Company's stock through

an investor general account and 6592351 shares of the Company's stock through an

investor credit securities account.Shareholders holding more than 5% of the shares the top 10 shareholders and the top 10

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

shares

□ Applicable √ Not Applicable

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

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

□ Applicable √ Not Applicable

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

back agreement dealing in reporting period

□ Yes √ No

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

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

□ Applicable √ Not Applicable

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

management during the reporting period. Please refer to the 2024 annual report for details.

61Bengang Steel Plates Co. Ltd. Interim Report 2025

V. Change of controlling shareholder or actual controller

Change of controlling shareholder during the reporting period

□ Applicable √ Not applicable

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

□ Applicable √ Not applicable

There was no change of substantial controller in the report period.VIII. Status of Preferred Shares

□ Applicable √ Not applicable

There were no preferred shares during the reporting period.

62Bengang Steel Plates Co. Ltd. Interim 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

the end of the period 19148

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 converti

convertible Amount of ble

No. Convertible bond holders Nature of convertible bond bonds held at

convertible bonds bonds

holders the end of the held at the end of held at

reporting the reporting the end

period (sheets) period (yuan) of the

reportin

g period

1 Soochow Securities Co. Ltd. State-owned Legal Person 3317717 331771700.00 5.89%

63Bengang Steel Plates Co. Ltd. Interim Report 2025

China Merchants Bank Co.

2 Ltd - Bosera CSI Convertible Bond & Exchangeable Bond Others 2480660 248066000.00 4.41%

Index ETF

E Fund Peace of Mind Fixed

3 Income Pension Product－ Others 2444591 244459100.00 4.34%

China Construction Bank

Corporation

4 Pacific Securities Co. State-owned Legal Person 2421336 242133600.00 4.30%

Industrial and Commercial

5 Bank of China Limited - Others 1900011 190001100.00 3.37%

Bosera Credit Bond Fund

Ping An Stable-Growth

Allocation Series 3 Fixed-

6 Income Pension Product - Others 1619639 161963900.00 2.88%

Industrial and Commercial

Bank of China Limited

Deji Capital Management

7 Company - DK MS FPI Foreign Legal Person 1612803 161280300.00 2.86%

(Cayman) Ltd. - QFII

China Guangfa Bank Co. Ltd.– GS Funds Anji Pure bond

8 half-yearly open bond-type Others 1029532 102953200.00 1.83%

initiated securities investment

fund

China CITIC Group

9 Corporation Enterprise Annuity Plan - China CITIC Others 1015606 101560600.00 1.80%

Bank Corporation Limited

Industrial and Commercial

10 Bank of China Limited – Huashang Convertible Bond Others 836179 83617900.00 1.48%

Securities Investment Fund

3. Changes in convertible bonds during the reporting period

√Applicable □ Not applicable

Unit: Yuan

Convertible Increase/Decrease

Corporate Bond Before Change Repurchas After Change

Name Conversion Redemption e

Bengang

Convertible Bond 5630985100.00 16000.00 5630969100.00

4. Cumulative share conversion

√Applicable □ Not applicable

Proportio

Name Total Cumulati

n of

Proportion of unconver

of Start date issue Total issue Cumulative ve converted Amount of shares ted

Conver and end quanti conversion conversiodate of ty amount amount n shares to the not converted amount tible conversion (sheet (Yuan) (Yuan) quantity( total issue (Yuan) to the Bond ) shares) quantity total issue

amount

Bengan

g 4th Jan

Conver 2021 – 28th 6800 6800000 11690309 23286060000 000.00 00.00 73 6.01% 5630969100.00 82.81% tible Jun 2026

Bond

5. Previous adjustments and revisions of the conversion price

64Bengang Steel Plates Co. Ltd. Interim Report 2025

Latest

Name of Conversi Adjusted Conversion

Convertibl on Price Conversio Disclosure Date Conversion Price Price as of the

e Bond Adjustm n Price Adjustment Explanation End of the ent Date (Yuan) Reporting

Period (Yuan)

Bengang

Convertibl July 19 5.02 July 10 2021 Implementation of 2020

e Bond 2021 Equity Distribution Plan

3.95

Bengang

Convertibl October

Implementation of 2021

1320214.55

September 28

2021 Interim Equity 3.95 e Bond Distribution Plan

Bengang

Convertibl June 16 2022 3.95 June 8 2022

Implementation of 2021

e Bond Equity Distribution Plan

3.95

6. The Company's Debt Status Changes in Creditworthiness and Cash Arrangements for Future

Debt Repayment at the End of the Reporting Period

√Applicable □ Not applicable

As of the end of the first half of 2025 the Company's total assets amounted to RMB 45758.0903 million

with an debt asset ratio of 75.57%. In accordance with the China Securities Regulatory Commission's

"Administrative Measures for the Issuance of Securities by Listed Companies" and the Shenzhen Stock

Exchange's Corporate Bond Listing Rules the Company commissioned the credit rating agency China

Chengxin International Credit Rating Co. Ltd. (hereinafter referred to as "China Chengxin") to conduct

a follow-up credit rating for the Bengang Convertible Bonds. On June 3 2025 China Chengxin issued

the "2025 Follow-up Rating Report on Bengang Plates Co. Ltd." maintaining the Company's corporate

credit rating at AA+ with a stable outlook and the credit rating of the Bengang Convertible Bonds at

AAA. During the reporting period the Company's corporate credit rating and the credit rating of the

corporate bonds remained unchanged. Bengang Convertible Bonds will pay interest on each full year

starting from the first day of issuance (June 29 2020). The company paid the fifth year's interest on June

30 2025 at an interest rate of 3.80%. Future repayments of principal and interest on the Bengang

Convertible Bonds will primarily come from net operating cash flow bank loans and market financing.V. The loss in the scope of consolidated statements during the reporting period exceeded 10%

of the net assets at the end of the previous year

√Applicable □ Not applicable

Reasons for the The impact on the company's production and

Items Losses

losses operation and debt repayment capacity

The parent company's net profit in the first

half of 2025 was RMB -1540142881.67

Parent company Net profit in the which exceeded the net assets of the audited

of Bengang first half of 2025 consolidated balance sheet at the end of the

Operational loss

Steel Plates Co. RMB - previous year by 10% affecting the increase

Ltd. 1540142881.67 in the consolidated net profit loss and the

increase in the debt-to-asset ratio in this

period.

65Bengang Steel Plates Co. Ltd. Interim Report 2025

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

the end of the reporting period

Unit: ten thousand yuan

Item 30 June 2025 31 December 2024 Changes over ending balance of last year

Current ratio 0.40 0.52 -23.08%

Debt-to-asset ratio 75.57% 72.72% 2.85%

Quick ratio 0.13 0.18 -27.78%

Current period Previous period Changes over previous period

Net profit after

deducting non-recurring -145037.98 -162165.39 -10.56%

gains and losses

EBITDA total debt ratio -1.14% -1.74% 0.60%

Interest Coverage ratio -4.42 -5.48 -19.34%

Cash Interest Coverage 1.44 4.68 -69.23%

ratio

EBITDA Interest -1.04 -1.72 -39.53%

Coverage ratio

Loan repayment rate 100.00% 100.00% 0.00%

Interest repayment rate 100.00% 100.00% 0.00%

66Bengang Steel Plates Co. Ltd. Interim Report 2025

VIII. Financial Report

1. Auditor’s report

Whether the interim report is audited

□ Yes √ No

The interim report is not audited.

2. Financial Statements

The unit of the financial statements is: RMB yuan

67Bengang Steel Plates Co. Ltd. Interim Report 2025

BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2025

(Expressed in Renminbi unless otherwise indicated)

Assets Notes 5 Jun 30 2025 Dec 31 2024

Current assets

Cash at bank and on hand (1) 2119971644.73 2453888470.48

Settlement provisions

Capital lent

Financial assets held for trading

Derivative financial assets

Notes receivable (2) 420783021.23 607279481.42

Accounts receivable (3) 933243164.81 501484081.73

Accounts receivable financing (4) 5552656.65 64399942.70

Prepayments (5) 821032065.29 391823135.87

Premium receivable

Reinsurance accounts receivable

Receivable deposit for reinsurance contract

Other receivables (6) 16354769.47 149015138.26

Redemptory financial assets for sale

Inventories (7) 7049937599.37 7333084694.27

Including: data assets

Contract assets

Assets held for sale

Non-current assets due within one year

Other current assets (8) 360129648.55 437081260.66

Total current assets 11727004570.10 11938056205.39

Non-current assets

Loan and advances issued

Debt Investments

Other debt investments

Long-term receivables

Long-term equity investments (9) 45413221.72 45413221.72

Other equity instrument investments (10) 933426254.63 933426254.63

Other non-current financial assets

Investment property

Fixed assets (11) 26050690523.41 26426320453.57

Construction in progress (12) 4537520033.00 3934442501.50

Productive biological assets

Oil and gas assets

Right-of-use assets (13) 1646483647.30 1685925710.14

Intangible assets (14) 389207571.30 394780068.68

Including: data assets

Development expenditure

Including: data assets

Goodwill

Long-term deferred expenses

Deferred tax assets (15) 365101631.17 371234449.79

Other non-current assets (16) 63242806.75 86297275.16

Total non-current assets 34031085689.28 33877839935.19

Total assets 45758090259.38 45815896140.58

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

68Bengang Steel Plates Co. Ltd. Interim Report 2025

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

As at 30 June 2025

(Expressed in Renminbi unless otherwise indicated)

Liabilities and equities Notes 5 Jun 30 2025 Dec 31 2024

Current Liabilities

Short-term loans (18) 771932029.09 371055490.50

Loan from central bank

Loan from other banks

Financial liability held for trading

Derivative financial liabilities

Notes payable (19) 13242519960.72 12982703669.86

Accounts payable (20) 2946268814.64 2761759439.36

Advance from customers (21) 60550.47 59327.21

Contract liabilities (22) 2720427152.25 2908598425.73

Financial assets sold for repurchase

Deposits from customers and interbank

Receipt from vicariously traded securities

Receipt from vicariously underwriting securities

Employee benefits payable (23) 9580745.39 1773068.35

Current tax liabilities (24) 41995727.81 54070097.83

Other payables (25) 2712614915.79 2354694200.01

Handling charges and commission payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within one year (26) 6235647286.25 1030502916.66

Other current liabilities (27) 302028180.11 328981058.74

Total current liabilities 28983075362.52 22794197694.25

Non-current liabilities

Provision for insurance contract

Long-term loans (28) 3544759075.31 2891941462.40

Bonds payable (29) 5569899459.53

Including: Preferred stock

Perpetual bond

Lease liabilities (30) 1615827405.83 1633911586.51

Long-term payables

Long-term employee benefits payable

Estimated liabilities

Deferred income (31) 189505772.22 173919087.47

Deferred tax liabilities (15) 246977220.84 252893530.26

Other non-current liabilities

Total non-current liabilities 5597069474.20 10522565126.17

Total liabilities 34580144836.72 33316762820.42

Shareholders' equity:

Share capital (32) 4108232205.00 4108228157.00

Other equity instruments (33) 947846937.93 947850195.03

Including: Preferred stock

Perpetual bond

Capital reserves (34) 13225644002.21 13225632166.95

Less: treasury shares

Other comprehensive income (35) -93407196.62 -93407196.62

Special reserves (36) 16177702.44 809649.65

Surplus reserves (37) 1195116522.37 1195116522.37

General risk reserve

Undistributed profits (38) -8896289413.80 -7497011632.90

Total equity attributable to equity holders of the parent company 10503320759.53 11887217861.48

Non-controlling interests 674624663.13 611915458.68

Total shareholder's equity 11177945422.66 12499133320.16

Total of liabilities and owners’ equity 45758090259.38 45815896140.58

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

69Bengang Steel Plates Co. Ltd. Interim Report 2025

BENGANG STEEL PLATES CO. LTD.STATEMENT OF FINANCIAL POSITION

As at 30 June 2025

(Expressed in Renminbi unless otherwise indicated)

Assets Notes 15 Jun 30 2025 Dec 31 2024

Current assets

Cash at bank and on hand 1999026895.77 1928597252.93

Financial assets held for trading

Derivative financial assets

Notes receivable 761406501.25 879167997.23

Accounts receivable (1) 1089580929.62 899413301.62

Accounts receivable financing 25550265.17 67033501.52

Prepayments 1384148744.17 552668067.77

Other receivables (2) 77724911.85 399809663.60

Inventories 6218522624.32 6510049399.94

Including: data assets

Contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 322005140.86 401232007.64

Total current assets 11877966013.01 11637971192.25

Non-current assets

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments (3) 2467956681.15 2437356681.15

Other equity instrument investments 933426254.63 933426254.63

Other non-current financial assets

Investment property

Fixed assets 25007974186.47 25361023150.98

Construction in progress 4370303939.29 3813480844.57

Productive biological assets

Oil and gas assets

Right-of-use assets 1646483647.30 1685925710.14

Intangible assets 203017353.08 206105870.50

Including: data assets

Development expenditure

Including: data assets

Goodwill

Long-term deferred expenses

Deferred tax assets 364151295.05 370213799.88

Other non-current assets 62502489.27 85556957.68

Total non-current assets 35055815846.24 34893089269.53

Total assets 46933781859.25 46531060461.78

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

70Bengang Steel Plates Co. Ltd. Interim Report 2025

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

As at 30 June 2025

(Expressed in Renminbi unless otherwise indicated)

Liabilities and shareholders' equities Notes 15 Jun 30 2025 Dec 31 2024

Current liabilities

Short-term loans 731668054.66 371055490.50

Financial liability held for trading

Derivative financial liabilities

Notes payable 12073496699.72 11915812506.01

Accounts payable 3349716181.85 2881087998.48

Prepayments

Contract liabilities 6734994549.72 6637545634.05

Employee benefits payable 7691011.20 354432.32

Current tax liabilities 24999888.62 28685832.43

Other payables 2778965167.50 2206387975.74

Liabilities held for sale

Non-current liabilities due within one year 6235647286.25 1030502916.66

Other current liabilities 41700590.54 61868166.75

Total current liabilities 31978879430.06 25133300952.94

Non-current liabilities

Long term loans 3544759075.31 2891941462.40

Bonds payable 5569899459.53

Including: Preferred stock

Perpetual bond

Lease liabilities 1615827405.83 1633911586.51

Long-term payables

Long-term employee benefits payable

Estimated liabilities

Deferred income 179963278.22 154871615.47

Deferred tax liabilities 246977220.84 252893530.26

Other non-current liabilities

Total non-current liabilities 5587526980.20 10503517654.17

Total liabilities 37566406410.26 35636818607.11

Shareholder’s equity:

Share capital 4108232205.00 4108228157.00

Other equity instruments 947846937.93 947850195.03

Including: Preferred stock

Perpetual bond

Capital reserves 12825154189.28 12825142354.02

Less: Treasury shares

Other comprehensive income -93407196.62 -93407196.62

Special reserves 13273126.64 9276.81

Surplus reserves 1195116522.37 1195116522.37

Undistributed Profits -9628840335.61 -8088697453.94

Total shareholder's equity 9367375448.99 10894241854.67

Total liabilities and shareholder’s equity 46933781859.25 46531060461.78

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

71Bengang Steel Plates Co. Ltd. Interim Report 2025

BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the period Jan.-Jun. 2025

(Expressed in Renminbi unless otherwise indicated)

Items Notes 5 Current period Previous period

1. Total operating income 24697800421.99 28366851887.99

Including: Operating income (39) 24697800421.99 28366851887.99

Interest income

Premium earned

Income from handling charges and commission

2. Total operating cost 26136426924.70 29878230529.33

Including: Operating cost (39) 25441217248.92 29168175176.89

Interest expense

Expenditure for handling charges and commission

Surrender value

Net expenditure for compensation

Net provision for insurance contract appropriated

Bonus payment for policy

Reinsurance premium

Tax and surcharges (40) 108022323.47 106481289.07

Selling and distribution expenses (41) 61464166.53 71977059.91

General and administrative expenses (42) 285764896.43 359904698.96

Research and development expenses (43) 31617334.27 36966260.63

Financial expenses (44) 208340955.08 134726043.87

Including: Interest expense 207308249.73 192939391.68

Interest income 17521734.29 20070259.17

Add: Other income (45) 109012246.69 90719972.37

Income on investment（“-” for loss） (46) -17631847.31 -31605308.28

Including: Income from associates and joint ventures

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

Exchange gains（“-” for loss）

Net exposure hedge income（“-” for loss）

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

Credit impairment loss （“-” for loss） (47) -9308109.96 16164459.46

Asset impairment loss （“-” for loss） (48) 36671170.60 -14313228.28

Assets disposal gains（“-” for loss） (49) 3008.85 10002955.91

3. Operational profit（“-” for loss） -1319880033.84 -1440409790.16

Add: Non-operating income (50) 9723769.21 8981750.82

Less: Non-operating expenses (51) 36523366.11 27657844.36

4. Total profit (“-” for loss) -1346679630.74 -1459085883.70

Less: Income tax expenses (52) 19976028.30 37458939.66

5. Net profit（“-” for loss） -1366655659.04 -1496544823.36

1.Classification by continuing operating

1.Net profit from continuing operation（“-” for loss） -1366655659.04 -1496544823.36

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

2.Classification by ownership

1. Net profit attributable to the owners of parent company （“-” for loss） -1399277780.90 -1541206007.44

2. Net profit attributable to non-controlling shareholders （“-” for loss） 32622121.86 44661184.08

6.Other comprehensive income

Other comprehensive income attributable to owners of the parent company after tax

1.Other comprehensive income items that will not be reclassified into gains/losses

1) Re-measurement of defined benefit plans of changes in net debt or net assets

2) Other comprehensive income under the equity method cannot be reclassified into

profit or loss

3) Changes in fair value of investments in other equity instruments

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

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

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

into profit or loss

2) Changes in fair value of other debt investments

3) Amount of financial assets reclassified into other comprehensive income

4) Credit impairment provision of other debt investments

5) Cash flow hedges reserve

6) Translation differences in foreign currency financial statements

7) Others

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

tax

7. Total comprehensive income -1366655659.04 -1496544823.36

Total comprehensive income attributable to the owner of the parent company -1399277780.90 -1541206007.44

Total comprehensive income attributable to non-controlling shareholders 32622121.86 44661184.08

8. Earnings per share

1）Basic earnings per share -0.341 -0.375

2）Diluted earnings per share -0.341 -0.375

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

72Bengang Steel Plates Co. Ltd. Interim Report 2025

BENGANG STEEL PLATES CO. LTD.STATEMENT OF COMPREHENSIVE INCOME

For the period Jan.-Jun. 2025

(Expressed in Renminbi unless otherwise indicated)

Items Notes 15 Current period Previous period

1. Total operating income (4) 24843114408.22 28760149571.95

Less: Operating cost (4) 25744208800.42 29834240304.59

Tax and surcharges 77033502.59 78312309.36

Selling and distribution expenses 93709728.93 72861508.21

General and administrative expenses 270944864.54 340794236.88

Research and development expenses 31617334.27 36966260.63

Financial expenses 209002624.36 151347791.22

Including: Interest expense 207308249.73 192939391.68

Interest income 15302608.67 16562599.74

Add: Other income 68822256.72 58511958.86

Income on investment（“-” for loss） (5) -17359947.52 -31605308.28

Including: Income from associates and joint ventures

Income from derecognition of financial assets

-332016.58

measured at amortized cost

Net exposure hedge income（“-” for loss）

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

Credit impairment loss（“-” for loss） -20985096.52 13580897.44

Assets impairment loss（“-” for loss） 36671170.60 -14313228.28

Assets disposal gains（“-” for loss） 3008.85 10000000.00

2. Operational profit（“-” for loss） -1516251054.76 -1718198519.20

Add: Non-operating income 9650019.10 8866515.98

Less: Non-operating expenses 33395650.60 27207319.92

3. Total profit (“-” for loss) -1539996686.26 -1736539323.14

Less: Income tax expenses 146195.41 -11902943.63

4. Net profit（“-” for loss） -1540142881.67 -1724636379.51

1.Net profit from continuing operation (“-” for loss) -1540142881.67 -1724636379.51

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

5.Other comprehensive income

1.Other comprehensive income items that will not be reclassified

into gains/losses

1) Re-measurement of defined benefit plans of changes

2) Other comprehensive income under the equity method cannot

be reclassified into profit or loss

3) Changes in fair value of investments in other equity

instruments

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

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

loss.

1) Other comprehensive income under the equity method investee

can be reclassified into profit or loss

2) Changes in fair value of other debt investments

3) Amount of financial assets reclassified into other

comprehensive income

4) Credit impairment provision of other debt investments

5) Cash flow hedges reserve

6) Translation differences in foreign currency financial statements

7) Others

6. Total comprehensive income -1540142881.67 -1724636379.51

7. Earnings per share

1）Basic earnings per share

2）Diluted earnings per share

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

73Bengang Steel Plates Co. Ltd. Interim Report 2025

BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF CASH FLOWS

For the period Jan.-Jun. 2025

(Expressed in Renminbi unless otherwise indicated)

Items Notes 5 Current period Previous period

1.Cash flow from operating activities

Cash received from sale of goods or rendering of services 26352011964.12 29554576980.10

Net increase of customers' deposit and interbank deposit

Net increase of loan from central bank

Net increase of loans from other financial institutions

Cash received for premium of original insurance contract

Net cash received for reinsurance business

Net increase of deposit and investment of the insured

Cash from receiving interest handling charge and commission

Net increase of loans from borrowing funds

Net increase of fund for repurchase business

Net cash received from traded securities

Tax rebate received 77037466.40

Other cash received relating to operating activities (53) 122173179.14 79435504.79

Subtotal of cash inflows from operating activities 26474185143.26 29711049951.29

Cash paid for goods and services 24803326040.01 27157976303.18

Net increase of customer's loan and advances

Net increase of deposit in central bank and interbank deposit

Cash for payment of compensation for original insurance contract

Net increase in capital lent

Cash for payment of interest handling charge and commission

Cash for payment of policy bonus

Cash paid to and on behalf of employees 942556803.50 1039547406.66

Cash paid for all types of taxes 197929978.91 259409968.23

Other cash paid relating to operating activities (53) 158742556.80 173300582.82

Subtotal of cash outflows from operating activities 26102555379.22 28630234260.89

Net cash flows from operating activities 371629764.04 1080815690.40

2. Cash flows from investing activities

Cash received from disposal of investments

Cash received from return on investments

Net cash received from disposal of fixed assets intangible assets and other long-

87181100.004854.37

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 87181100.00 4854.37

Cash paid for acquisition of fixed assets intangible assets and other long-term

976150324.56508785779.41

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 1036150324.56 508785779.41

Net cash flows from investing activities -948969224.56 -508780925.04

3. Cash flows from financing activities

Proceeds from investment 29400000.00

Including: Proceeds from investment of non-controlling shareholders of subsidiary 29400000.00

Proceeds from borrowings 1251997823.71 1095000000.00

Other proceeds relating to financing activities (53) 1815330484.81 1841743458.53

Subtotal of cash inflows from financing activities 3096728308.52 2936743458.53

Cash repayments of borrowings 703625752.00 1657310516.00

Cash payments for distribution of dividends profit or interest expenses 337785953.76 213951632.57

Including: Cash paid to non-controlling shareholders as dividend and profit by

51908524.27

subsidiaries

Other cash payments relating to financing activities (53) 1961851891.13 1677434508.77

Subtotal of cash outflows from financing activities 3003263596.89 3548696657.34

Net cash flows from financing activities 93464711.63 -611953198.81

4. Effect of foreign exchange rate changes on cash and cash equivalents 12181557.53 22878220.42

5. Net increase in cash and cash equivalents (54) -471693191.36 -17040213.03

Add: Cash and cash equivalents at the beginning of the period (54) 1590205218.91 1199685408.38

6. Cash and cash equivalents at the ending of the period (54) 1118512027.55 1182645195.35

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

74Bengang Steel Plates Co. Ltd. Interim Report 2025

BENGANG STEEL PLATES CO. LTD.STATEMENT OF CASH FLOWS

For the period Jan.-Jun. 2025

(Expressed in Renminbi unless otherwise indicated)

Items Notes 15 Current period Previous period

1. Cash flow from operating activities

Cash received from sale of goods or rendering of services 25486623895.09 29388810509.14

Tax rebate received 73839161.75

Other cash received relating to operating activities 359517948.34 65515228.78

Subtotal of cash inflows from operating activities 25846141843.43 29528164899.67

Cash paid for goods and services 24109950616.59 27619248120.78

Cash paid to and on behalf of employees 869629604.70 957610316.32

Cash paid for all types of taxes 126265175.99 160249664.86

Other cash paid relating to operating activities 144527255.02 150081370.56

Subtotal of cash outflows from operating activities 25250372652.30 28887189472.52

Net cash flows from operating activities 595769191.13 640975427.15

2. Cash flows from investing activities

Cash received from disposal of investments

Cash received from return on investments 184898383.95 137000000.00

Net cash received from disposal of fixed assets intangible

87181100.00

assets and other long-term assets

Net cash received from disposal of subsidiary and other

operating units

Other cash received relating to investing activities

Subtotal of cash inflows from investing activities 272079483.95 137000000.00

Cash paid for acquisition of fixed assets intangible assets and

972611679.66508204963.64

other long-term assets

Cash paid for acquisition of investments 90600000.00

Net cash paid for acquisition of subsidiary and other

operating unit

Other cash paid relating to investing activities

Subtotal of cash outflows paid for investing activities 1063211679.66 508204963.64

Net cash flows from investing activities -791132195.71 -371204963.64

3. Cash flows from financing activities

Proceeds from investment

Cash received from borrowings 1251997823.71 1095000000.00

Other cash received relating to financing activities 1815330484.81 1841743458.53

Subtotal of cash inflows from financing activities 3067328308.52 2936743458.53

Cash repayments of borrowings 703625752.00 1657310516.00

Cash payments for distribution of dividends profit or interest 285877429.49 213951632.57

Other cash payments relating to financing activities 1961851891.13 1677434508.77

Subtotal of cash outflows from financing activities 2951355072.62 3548696657.34

Net cash flows from financing activities 115973235.90 -611953198.81

4. Effect of foreign exchange rate changes on cash and

12043045.9122844423.74

cash equivalents

5. Net increase in cash and cash equivalents -67346722.77 -319338311.56

Add: Cash and cash equivalents at the beginning of the period 1064914001.36 1074502887.78

6. Ending balance of cash and cash equivalents 997567278.59 755164576.22

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

75Bengang Steel Plates Co. Ltd. Interim Report 2025

BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period Jan.-Jun. 2025

(Expressed in Renminbi unless otherwise indicated)

Current period

Owner's equity attributable to parent company

Items Other equity instruments Less: Other General Non-controlling Total of owner's

Share capital Preference Perpetual Capital reserves Treasury comprehensive Special reserves Surplus reserves risk Undistributed profit Subtotal interest equity Others

shares bond shares income reserve

1. Ending balance of last year 4108228157.00 947850195.03 13225632166.95 -93407196.62 809649.65 1195116522.37 -7497011632.90 11887217861.48 611915458.68 12499133320.16

Add: Change of accounting policies

Correction of errors for last period

Business consolidation under common

control

Others

2. Beginning balance of current year 4108228157.00 947850195.03 13225632166.95 -93407196.62 809649.65 1195116522.37 -7497011632.90 11887217861.48 611915458.68 12499133320.16

3. Changes in current year (“-” for decrease) 4048.00 -3257.10 11835.26 15368052.79 -1399277780.90 -1383897101.95 62709204.45 -1321187897.50

1) Total comprehensive income -1399277780.90 -1399277780.90 32622121.86 -1366655659.04

2) Capital increase and decrease by 4048.00 -3257.10 11835.26 12626.16 29400000.00 29412626.16

shareholders

(1) Common share invested by shareholders 29400000.00 29400000.00

(2) Capital input by the holder of other equity

instruments 4048.00 -3257.10 11835.26 12626.16 12626.16

(3) Share-based payment attributable to

owners' equity

(4) Others

3) Profit distribution

(1) Appropriation to surplus reserves

(2) Appropriation to general risk reserve

(3) Profit distribution to shareholders

(4) Others

4) Transfers within shareholders' equity

(1) Capital reserves transferred into paid-in

capital (or stock)

(2) Surplus reserves transferred into paid-in

capital (or stock)

(3) Surplus reserves to recover loss

(4) Net changes of defined contribution plans

transferred into Retained Earnings

(5) Other comprehensive income transferred

into Retained Earnings

(6) Others

5) Special reserves 15368052.79 15368052.79 687082.59 16055135.38

(1) Provision of special reserves 32080601.70 32080601.70 2253924.06 34334525.76

(2) Use of special reserves 16712548.91 16712548.91 1566841.47 18279390.38

6) Others

4. Ending balance of current year 4108232205.00 947846937.93 13225644002.21 -93407196.62 16177702.44 1195116522.37 -8896289413.80 10503320759.53 674624663.13 11177945422.66

The notes to the financial statements attached form part of these financial statements

Legal Representative: Chief Financial Officer: Chief Accountant:

76Bengang Steel Plates Co. Ltd. Interim Report 2025

BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)

For the period Jan.-Jun. 2025

(Expressed in Renminbi unless otherwise indicated)

Previous period

Owner's equity attributable to parent company

Items Other equity instruments 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:

77Bengang Steel Plates Co. Ltd. Interim Report 2025

BENGANG STEEL PLATES CO. LTD.STATEMENT OF CHANGES IN EQUITY

For the period Jan.-Jun. 2025

(Expressed in Renminbi unless otherwise indicated)

Current period

Other equity instruments

Items Less: Other

Share capital Perpet Capital reserves Treasury comprehensive Special Surplus reserves Undistributed Total shareholder’s Preference ual Others reserves profits equity

shares shares income

bond

1. Ending balance of last year 4108228157.00 947850195.03 12825142354.02 -93407196.62 9276.81 1195116522.37 -8088697453.94 10894241854.67

Add: Change of accounting policies

Correction of errors for last period

Others

2. Beginning balance of current year 4108228157.00 947850195.03 12825142354.02 -93407196.62 9276.81 1195116522.37 -8088697453.94 10894241854.67

3. Changes in current year (“-” for decrease) 4048.00 -3257.10 11835.26 13263849.83 -1540142881.67 -1526866405.68

1) Total comprehensive income -1540142881.67 -1540142881.67

2) Capital increase and decrease by shareholders 4048.00 -3257.10 11835.26 12626.16

(1) Common share invested by shareholders

(2) Capital input by the holder of other equity instruments 4048.00 -3257.10 11835.26 12626.16

(3) Share-based payment attributable to shareholders' equity

(4) Others

3) Profit distribution

(1) Appropriation of surplus reserves

(2) Profit distribution to shareholders

(3) Others

4) Transfers within shareholders' equity

(1) Capital reserves transferred into paid-in capital (or stock)

(2) Surplus reserves transferred into paid-in capital (or stock)

(3) Surplus reserves to recover loss

(4) Net changes of defined contribution plans transferred into

Retained Earnings

(5) Other comprehensive income transferred into retained

earnings

(6) Others

5) Special reserves 13263849.83 13263849.83

(1) Provision of special reserves 25328400.00 25328400.00

(2) Use of special reserves 12064550.17 12064550.17

6) Others

4. Ending balance of current year 4108232205.00 947846937.93 12825154189.28 -93407196.62 13273126.64 1195116522.37 -9628840335.61 9367375448.99

The notes to the financial statements attached form part of these financial statements

Legal Representative: Chief Financial Officer: Chief Accountant:

78Bengang Steel Plates Co. Ltd. Interim Report 2025

BENGANG STEEL PLATES CO. LTD.STATEMENT OF CHANGES IN EQUITY (Continued)

For the period Jan.-Jun. 2025

(Expressed in Renminbi unless otherwise indicated)

Previous period

Other equity instruments Less:

Items Other comprehensive Special Undistributed Total shareholder’s

Share capital Preferen Perpetual Capital reserves Treasury Surplus reserves

Others income reserves profits equity

ce shares bond shares

1. Ending balance of last year 4108219302.00 947858134.16 12852074188.80 -50371341.88 3681.16 1195116522.37 -2900010737.27 16152889749.34

Add: Change of accounting policies

Correction of errors for last period

Others

2. Beginning balance of current year 4108219302.00 947858134.16 12852074188.80 -50371341.88 3681.16 1195116522.37 -2900010737.27 16152889749.34

3. Changes in current year (“-” for decrease) 8855.00 -7939.13 -26931834.78 -43035854.74 5595.65 -5188686716.67 -5258647894.67

1) Total comprehensive income -43035854.74 -5188686716.67 -5231722571.41

2) Capital increase and decrease by shareholders 8855.00 -7939.13 -26931834.78 -26930918.91

(1) Common share invested by shareholders

(2) Capital input by the holder of other equity instruments 8855.00 -7939.13 25840.89 26756.76

(3) Share-based payment attributable to shareholders' equity

(4) Others -26957675.67 -26957675.67

3) Profit distribution

(1) Appropriation of surplus reserves

(2) Profit distribution to shareholders

(3) Others

4) Transfers within shareholders' equity

(1) Capital reserves transferred into paid-in capital (or stock)

(2) Surplus reserves transferred into paid-in capital (or stock)

(3) Surplus reserves to recover loss

(4) Net changes of defined contribution plans transferred

into Retained Earnings

(5) Other comprehensive income transferred into retained

earnings

(6) Others

5) Special reserves 5595.65 5595.65

(1) Provision of special reserves 57316980.35 57316980.35

(2) Use of special reserves 57311384.70 57311384.70

6) Others

4. Ending balance of current year 4108228157.00 947850195.03 12825142354.02 -93407196.62 9276.81 1195116522.37 -8088697453.94 10894241854.67

The notes to the financial statements attached form part of these financial statements

Legal Representative: Chief Financial Officer: Chief Accountant:

79Bengang Steel Plates Co. Ltd. Interim Report 2025

Bengang Steel Plates Co. Ltd.Notes to the financial statements

For the period from Jan. to Jun. 2025

(Expressed in Renminbi unless otherwise indicated)

1. Basic Information of the Company

Bengang Steel Plates Co. Ltd. (hereinafter referred to as “Bengang Steel Plates” or “theCompany”) as approved in Liao-Zheng (1997) No. 57 by Liaoning People’s Government on

27 March 1997 was incorporated as a joint stock limited company through public share offer

of domestic listed foreign currency denominated shares (B shares) in the People’s Republic of

China (the “PRC”) on 27 June 1997 by Benxi Steel and Iron (Group) Co. Ltd. (“BengangGroup”) through reorganization of operations assets and liabilities of its plants namely Steel

Smelting Plant Primary Rolling Plant and Continuous Hot Rolling Plant.As approved by China Securities Regulatory Commission (hereinafter referred to as “theCSRC”) the Company issued 400000000 B-shares at HKD 2.38 each in Shenzhen Stock

Exchange on 10 June 1997. On 3 November 1997 the Company issued another 120000000

A-shares (Renminbi common Shares) at RMB 5.40 each and listed in Shenzhen Stock

Exchange since 15 January 1998. The capital shares were totaled to 1136000000 shares.On 14 March 2006 according to the resolutions of the Shareholders’ Meeting regarding share

equity relocation the Share Equity Relocation Scheme Response to Bengang Steel Plate Co.Ltd. about Share Equity Relocation issued by Liaoning Provincial Government State-owned

Asset Administrative Committee Bengang Group – the only holder of non-negotiable state-

owned legal person shares paid the consideration to the current shareholders to obtain the

current option for the 40800000 shares of the total 616000000 shares it was holding.Shareholding positions have been registered with China Securities Depository & Clearing

Corporation Ltd. Shenzhen Office. However the total amount of capital shares of Bengang

Steel Plates Co. Ltd. was not changed through the share equity relocation action.According to the approval document “Zheng-Jian-Gong-Si-Zi [2006] No. 126” by China

Securities Regulatory Commission on 30 June 2006 the Company was approved to place 2

billion Renminbi common shares particularly to Bengang Group and the proceeds would be

used to purchase the related assets of the Group. On the same day Bengang Group received

circular Zheng-Jian-Gong-Si-Zi [2006] No. 127 issued by China Securities Regulatory

Committee and were exempted for the liability of undertaking the purchase offer. The liability

was caused by subscribing of the 2 billion new shares and the total shareholding was thus

80Bengang Steel Plates Co. Ltd. Interim Report 2025

increased to 2.5752 billion shares (accounting for 82.12% of the total capital shares of the

Company). On 28 August 2006 as approved by China Securities Depository & Clearing

Corporation Ltd. Shenzhen Office the registration and conditional placing procedures of the 2

billion new shares were completed. On 28 September 2006 the privately placed shares were

approved by Shenzhen Stock Exchange to be placed in the stock market. The placing price was

RMB4.6733 per share.Approved by the China Securities Regulatory Commission [2017] No. 1476 Bengang Steel

Plate Co. Ltd. privately placed no more than 739371534 RMB ordinary shares (A shares) to

no more than 10 issuers. The non-public offering was completed on 9 February 2018 and

739371532 shares were actually issued. The placing price was RMB5.41 per share.

On August 20 2021 the State-owned Assets Supervision and Administration Commission of

the People's Government of Liaoning Province (hereinafter referred to as Liaoning SASAC)

and Anshan Iron and Steel Group Co. Ltd. (hereinafter referred to as Ansteel Group) signed

the "Agreement on the Gratuitous Transfer of State-owned Equity in Bengang Group Co. Ltd.between the State-owned Assets Supervision and Administration Commission of the People's

Government of Liaoning Province and Ansteel Group Co. Ltd." According to the agreement

Liaoning SASAC will transfer its 51% equity in Bengang Group Co. Ltd. (hereinafter referred

to as Bengang Group) to Anshan Iron and Steel Group for free. After the completion of this

free transfer Ansteel Group became the controlling shareholder of Bengang Group and

Ansteel Group indirectly hold 81.07% of the total share capital of Bengang Steel Plates.As at 30 June 2025 the capital shares were totaled to 4108221073.00 shares.The Company’s uniform social credit code: 91210000242690243E.The Company’s registered address: 16th Renmin Road Pingshan District Benxi Liaoning

Province.The Company’s legal representative: Huang Zuowei.The parent company of Bengang Steel Plates Co. Ltd is Benxi Steel and Iron (Group) Co. Ltd.and the actual controller is Ansteel Group Co. Ltd..Bengang Steel Plates Co. Ltd. belongs to ferrous metal smelting and rolling processing

industry and is mainly involved in producing and trading of ferrous metal products.The financial statements have been approved for reporting by the board of directors of the

Company on 27 August 2025.

81Bengang Steel Plates Co. Ltd. Interim 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 (11) Inventory (14) Fixed assets

(17) Intangible assets (23) Revenue under “3. Significant accounting policies andaccounting estimates” for details.

(1) Statement of compliance with China Accounting Standards for Business Enterprises

The financial statements present truly and completely the consolidated and parent company’s

financial position as of June 30 2025 and the consolidated and parent company’s operation

results and cash flows from January to June 2025 in accordance with China Accounting

Standards for Business Enterprises promulgated by the Ministry of Finance.

(2) Accounting year

The Accounting year is from 1 January to 31 December.

(3) Operating period

The operating period is twelve months.

(4) Functional currency

The Company’s functional currency is RMB.

(5) The accounting treatment for Business combination under/not under common control

Business combination under common control

82Bengang Steel Plates Co. Ltd. Interim Report 2025

The assets and liabilities that the Company acquired in a business combination shall be

measured on the basis of their carrying amount of acquiree’s assets liabilities (as well as the

goodwill arising from the business combination) in the consolidated financial statement of the

ultimate controller on the combining date. As for the balance between the carrying amount of

the net assets obtained by the Company and the carrying amount of the consideration paid by

it (or the total par value of the shares issued) capital reserve needs to be adjusted. If the capital

reserve is not sufficient any excess shall be adjusted against retained earnings.Business combination not under common control

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

securities or debt securities.

(6) Scope of consolidation and Consolidation of Financial Statements

1. Scope of consolidation

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

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

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

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2. Procedure of consolidation

When preparing consolidated financial statements the parent shall consider the entire group as

an accounting entity adopt uniform accounting policies to prepare the consolidated financial

statements which reflect the overall financial position operating results and cash flows of the

group. The impact of internal transactions between the Company and its subsidiaries and

between subsidiaries shall be offset. If internal transactions indicate that relevant assets have

suffered impairment losses such losses shall be fully recognized. The accounting policy and

accounting period of the subsidiaries within the consolidation scope shall be in accordance

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

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

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

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

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

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

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

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

(1) Increasing new subsidiaries and businesses

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

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

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

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

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

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

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

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

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

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

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

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

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previously obtaining equity investment and the date the acquiree and acquirer are under

common control which is later and the combining date other comprehensive income and

other changes of net assets arising from the equity investment previously held before

obtaining the control the acquiree shall be adjusted against the prior retained earnings of the

comparative financial statements and the current profit or loss respectively.If it is not under common control it will be included in the consolidated financial statements

from the date of acquisition based on the fair value of each identifiable asset liability and

contingent liability determined on the date of acquisition.When the Company becomes capable of exercising control over an investee not under

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

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

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

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

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

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

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

(2) Disposing subsidiaries or businesses

1. General treatment

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

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

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

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

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

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

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

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

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

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

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

over acquiree.

2. Disposing subsidiaries by multiple transactions

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

disposes of its subsidiary in stages in determining whether to account for the multiple

transactions as a single transaction the Company shall consider all of the terms and

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conditions of the transactions and their economic effects. One or more of the following may

indicate that the Company shall account for the multiple arrangements as a single transaction:

(a) Arrangements are entered into at the same time or in contemplation of each other;

(b) Arrangements work together to achieve an overall commercial effect;

(c) The occurrence of one arrangement is dependent on the occurrence of at least one

other arrangement; and

(d) One arrangement considered on its own is not economically justified but it is

economically justified when considered together with other arrangements.If each of the multiple transactions forms part of a bundled transaction which eventually

results in loss of control of the subsidiary these multiple transactions shall be accounted for

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

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

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

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

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

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

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

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

cases.

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

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

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

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

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

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

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

sufficient any excess shall be adjusted against retained earnings.

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

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

without loss of control the difference between the amount of the consideration received and

the corresponding portion of the nest assets of the subsidiary calculated continuously from

the acquisition date or the combination date related to the disposal of the long-term equity

investments shall be adjusted to the capital reserve (capital premium or share premium) in

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the consolidated financial statements. If the balance of the capital reserve is not sufficient

any excess shall be adjusted against retained earnings.

(7) Classification of joint venture arrangements and accounting treatment

Joint venture arrangements are divided into joint operations and joint ventures.When the Company is a joint venture party of a joint venture arrangement and have the assets

related to the arrangement and assumes the liabilities related to the arrangement it is a joint

operation.The Company confirms the following items related to the share of interest in the joint

operation and performs accounting treatment in accordance with the relevant enterprise

accounting standards:

a. Confirm the assets held by the company separately and confirm the assets held jointly by

the Company's share;

b. Recognize the liabilities assumed by the Company separately and the liabilities jointly

assumed by the company's share;

c. Recognize the income generated by the sale of the Company’s share of common operating

output;

d. Recognize the revenue generated from the sale of joint operations based on the Company's

share;

e. Confirm the expenses incurred separately and the expenses incurred in the joint operation

according to the Company's share.The Company's investment in joint ventures is accounted for using the equity method. Fordetails see Note (13) Long-term equity investments under “3. Significant accountingpolicies and accounting estimates”.

(8) Recognition of cash and cash equivalents

Cash refers to the cash on hand and the unrestricted deposit. Cash equivalents are investments

held by the Company that are short-term highly liquid readily convertible into known amounts

of cash and subject to insignificant risk of changes in value.

(9) Foreign currency transaction and translation of foreign currency financial statements

1. Foreign currency transaction

87Bengang Steel Plates Co. Ltd. Interim Report 2025

Foreign currency transactions are translated into RMB at the current rate at the day of

transactions.The foreign currency monetary items shall be translated at the spot exchange rate on the

balance sheet date. The balance of exchange arising from the difference between the spot

exchange rate on the balance sheet date and the spot exchange rate at the time of initial

recognition or prior to the balance sheet date except those arising from the raising of special

foreign debt for the purchase or construction of capitalizable assets thus shall be capitalized

according to the borrowing costs capitalization principle shall be recorded into the profits and

losses at the current period.

2. Translation of foreign currency financial statements

The asset and liability items in the statement of financial position shall be translated at a spot

exchange rate on the balance sheet date. Among the owner's equity items except the ones as

"undistributed profits" others shall be translated at the spot exchange rate at the time when

they are incurred. The income and expense items in the income statement shall be translated

using an exchange rate that is determined in a systematic and reasonable manner and

approximates the spot exchange rate on the transaction date.When disposing an overseas business the Company shall shift the balance which is presented

under the items of the owner's equities in the statement of financial position and arises from

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

disposal profits and losses of the current period.

(10) Financial instruments

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

becomes a party to a financial instrument contract.

1. Classification of financial instruments

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

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

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

other comprehensive income and financial assets measured at fair value through profit or loss

at initial measurement.

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A financial asset which is not designated as a financial asset measured at fair value through

profit or loss shall be measured at amortised cost if both of the following conditions are met.- The financial asset is held within a business model whose objective is to hold financial

assets in order to collect contractual cash flows.- The contractual terms of the financial asset give rise on specified dates to cash flows that

are solely payments of principal and interest on the principal amount outstanding.A financial asset shall be measured at fair value through other comprehensive income if both

of the following conditions are met.- The financial asset is held within a business model whose objective is achieved by both

collecting contractual cash flows and selling financial assets.- The contractual terms of the financial asset give rise on specified dates to cash flows that

are solely payments of principal and interest on the principal amount outstanding.The Company may make an election at initial recognition for non-trading equity instrument

investments whether it is designated as a financial asset (equity instrument) that is measured at

fair value through other comprehensive income. The designation is made on the basis of a

single investment and the related investment meets the definition of an equity instrument from

the issuer's perspective.Other financial assets other than these are classified as financial assets measured at fair value

through profit or loss. At the initial recognition in order to eliminate or significantly reduce

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

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

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

cost and financial liabilities measured at fair value through profit or loss at initial measurement.The Company may at initial recognition designate a financial liability as measured at fair value

through profit or loss because either:

(a) it eliminates or significantly reduces an accounting mismatch;

(b) a group of financial liabilities or financial assets and financial liabilities is managed and its

89Bengang Steel Plates Co. Ltd. Interim Report 2025

performance is evaluated on a fair value basis in accordance with a documented risk

management or investment strategy and information about the group is provided internally

on that basis to the entity’s key management personnel;

(c) the financial liability contains embedded derivatives that need to be separated.

2. Recognition and measurement of financial instruments

(1) Financial assets measured at amortised cost

Financial assets measured at amortized cost include notes receivables accounts receivables

other receivables long-term receivables debt investments etc. At initial recognition the

Company shall measure a financial asset at its fair value plus or minus transaction costs that

are directly attributable to the acquisition or issue of the financial asset. The Company shall

measure account receivables at their transaction price if the account receivables do not contain

a significant financing component and accounts receivables that the company has decided not

to consider for a financing component of no more than one year.Interests calculated by using the effective interest method during the holding period shall be.recognized in profit or loss.When recovering or disposing the receivables the difference between the price obtained and

the carrying value shall be recognized in current profit or loss.

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

instruments)

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

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

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

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

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

instruments)

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

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

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

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

fair value. Changes in fair value are included in other comprehensive income. The dividends

obtained are recognised in profit and loss.When the financial assets are derecognized the accumulated gain or loss previously.recognised in other comprehensive income is transferred from other comprehensive income

and recognised in retained earnings.

(4) Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include transactional financial assets

derivative financial assets other non-current financial assets etc. The Company shall measure

the financial assets at fair value at initial recognition. Transaction costs are recognised in profit

or loss. Changes in fair value are included in profit or loss.

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

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

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

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

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

changes in fair value are adjusted.

(6) Financial liabilities measured at amortized cost

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

91Bengang Steel Plates Co. Ltd. Interim Report 2025

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

recognized in profit or loss.When the financial liabilities are derecognized the difference between the price obtained and.the carrying value shall be recognized in profit and loss.

3. Termination of recognition of financial assets and financial assets transfer

When one of the following conditions is met the company terminates the recognition of

financial assets.- Termination of contractual rights to receive cash flows from financial assets;

- The financial assets have been transferred and almost all the risks and rewards in the

ownership of the financial assets have been transferred to the transferee;

- The financial assets have been transferred. Although the company has neither transferred

nor retained almost all the risks and rewards of the ownership of the financial assets it has

not retained control of the financial assets.If the Company modifies or renegotiates a contract with its counterparty and the modification

constitutes a substantial modification the original financial asset will be derecognized and a

new financial asset will be recognized in accordance with the modified terms.If it retained nearly all of the risks and rewards related to the ownership of the financial asset

it shall not stop recognizing the financial asset.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

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(2) The sum of consideration received from the transfer and the accumulative amount of the

changes of the fair value originally recorded in the owners' equities (in the event that the

financial asset involved in the transfer is a financial asset Available-for-sale).If the transfer of partial financial asset satisfies the conditions to derecognize the entire book

value of the transferred financial asset shall between the portion whose recognition has been

stopped and the portion whose recognition has not been stopped be apportioned according

to their respective relative fair value and the difference between the amounts of the following

2 items shall be included into the profits and losses of the current period:

(1) The book value of the portion whose recognition has been stopped; and

(2) The sum of consideration of the portion whose recognition has been stopped and the

portion of the accumulative amount of the changes in the fair value originally recorded in the

owner's equities which is corresponding to the portion whose recognition has been stopped

(in the event that the financial asset involved in the transfer is a financial asset Available-for-

sale).If the transfer of financial assets does not satisfy the conditions to stop the recognition it

shall continue to be recognized as financial assets and the consideration received shall be

recognized as financial liabilities.

4. Termination of recognition of financial liabilities

Only when the prevailing obligations of a financial liability are relieved in all or in part may

the recognition of the financial liability be terminated in all or partly. Where the Company

(debtor) enters into an agreement with a creditor so as to substitute the existing financial

liabilities by way of any new financial liability and if the contractual stipulation regarding

the new financial liability is substantially different from that regarding the existing financial

liability it shall terminate the recognition of the existing financial liability and shall at the

same time recognize the new financial liability.Where the Company makes substantial revisions to part or all of the contractual stipulations

of the existing financial liability it shall terminate the recognition of the existing financial

liability or part of it and at the same time recognize the financial liability after revising the

contractual stipulations as a new financial liability.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Company use unobservable inputs for the asset or liability.

6. Impairment provision of the financial assets

The Company recognize the expected credit loss on financial assets measured at amortized cost

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

financial guarantee contract and so on on the individual or portfolio basis.The Company considers all reasonable and relevant information including past events current

conditions and forecasts of future economic conditions and uses the risk of default as the

weight to calculate the probability-weighted amount of present value of difference between the

cash flow receivable from the contract and the cash flow expected to be received to confirm

the expected credit loss.For account receivables and contract assets recognized according to Accounting Standards for

Business Enterprises No. 14 Revenue whether a significant financing component is contained

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or not the Company shall always measure the loss allowance at an amount equal to lifetime

expected credit losses.For lease receivables recognized according to Accounting Standards for Business Enterprises

No. 21 Lease the Company shall always measure the loss allowance at an amount equal to

lifetime expected credit losses.For other financial instruments the Company shall assess changes in the credit risk of the

relevant financial instruments since initial recognition at each balance sheet date.The company compares the risk of default on the balance sheet date of financial instruments

with the risk of default on the date of initial recognition to determine the relative change in the

risk of default during the expected life of the financial instrument to assess whether there is a

significant increase in credit risk of financial assets since the initial recognition. Generally the

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

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

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

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

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

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

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

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

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

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

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

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

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

(11) Inventory

1. Inventory classification

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Inventories include material in transit raw material turnover materials finished goods work

in process issue commodity materials for consigned processing etc.Inventory is initially measured at cost. Inventory cost includes purchase cost processing cost

and other expenditures incurred to bring inventory to its current location and state.

2. Valuation method for inventory dispatched

The weighted average method is used to calculate the actual cost of the inventories dispatched.

3. Inventory system

The Company uses perpetual inventory system.

4. Amortization of low-valued consumables and packing materials

(1) Low-valued consumables shall be amortized in full upon issuance.

(2) Packing materials shall be expensed in full upon issuance.

5. The basis for confirming the net realizable value of inventories and the methods to

make provision for the inventory impairment loss

On the balance sheet date inventories shall be measured at the lower of cost and net realizable

value. When the cost of inventories is higher than its net realizable value provision for

inventory impairment loss shall be made. The net realizable value refers to the amount of the

estimated selling price of the inventory minus the estimated costs that will occur at the time of

completion estimated selling expenses and relevant taxes in daily activities.The net realizable value of inventories (finished products stock commodity material etc.)

held for direct selling in the daily business activity shall be calculated by deducting the

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

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to be higher than its book value it shall be reversed within the amount of the inventory

impairment that has been withdrawn and the reverted amount shall be included in the current

profit and loss.

(12) Contract asset

1. Recognition methods and criteria of contract assets

When either party to a contract has performed the Company shall present the contract in the

statement of financial position as a contract asset or a contract liability depending on the

relationship between the Company’s performance and the customer’s payment. If the

Company have the rights to receive consideration (the right is conditioned on factors other

than the passage of time) by transferring goods or services to a customer the entity shall

present the contract as a contract asset. Contract assets and contract liabilities under the same

contract are disclosed in net amount. An entity shall present any unconditional rights to

consideration (only the passage of time is required) separately as a receivable.

2. Expected credit loss of contract assets

For the accounting policy of the expected credit loss of contract assets please refer to Note

(10) 6. Impairment provision of the financial assets under “3. Significant accounting policiesand accounting estimates”

(13) Long-term equity investment

1. Criteria of joint control and significant influence

Joint control is the contractually agreed sharing of control of an arrangement which exists only

when decisions about the relevant activities require the unanimous consent of the parties

sharing control. If the Company and other joint venture have joint control of the investee and

have rights to the net assets of the investee the investee is a joint venture of the Company.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

97Bengang Steel Plates Co. Ltd. Interim Report 2025

the carrying amount of the previously held equity investment together with the additional

investment cost for new shares at combination date shall be adjusted to the capital reserve. If

the balance of capital reserve is not sufficient any excess shall be adjusted to retained earnings.When an investor becomes capable of exercising control over an investee due to additional

investment or other reasons the difference between the initial investment cost recognized in

accordance with the above principles and the sum of the book value of the long-term equity

investment before the merger plus the book value of the cost for the further shares acquired on

the merger date shall be adjusted to the capital reserve. If the balance of capital reserve is not

sufficient any excess shall be adjusted to retained earnings.For a business combination not under common control the initial investment cost of the long-

term equity investment shall be the acquisition cost at the acquisition date. When an investor

becomes capable of exercising control over an investee due to additional investment or other

reasons the initial investment cost under the cost method shall be the carrying amount of

previously held equity investment together with the additional investment cost.

(2) The initial cost of the long-term equity investment other than from business acquisition

The initial cost of a long-term equity investment obtained by making payment in cash shall be

the purchase cost which is actually paid.The initial cost of a long-term equity investment obtained on the basis of issuing equity

securities shall be the fair value of the equity securities issued.

3. Subsequent measurement and profit or loss recognition

(1) Cost method

The Company adopts cost method for the long term investment in subsidiary company unless

the investment qualifies as held for sale. An investing enterprise shall in accordance with the

attributable share of the net profits or losses of the invested entity recognize the investment

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

98Bengang Steel Plates Co. Ltd. Interim Report 2025

acquisition date the difference shall be credited to profit or loss for the current period and the

cost of long-term equity investment shall be adjusted accordingly.The Company shall recognize its share of the investee’s net profits or losses as well as its share

of the investee’s other comprehensive income as investment income or losses and other

comprehensive income and adjust the carrying amount of the investment accordingly. The

carrying amount of the investment shall be reduced by the portion of any profit distributions or

cash dividends declared by the investee that is attributable to the investor. The investor’s share

of the investee’s owners’ equity changes other than those arising from the investee’s net profit

or loss other comprehensive income or profit distribution and the carrying amount of the long-

term equity investment shall be adjusted accordingly.During the holding period if the investee makes consolidated financial statements the

Company shall calculate its share based on the investee’s net profit other comprehensive

income and the amount of other owners' equity attribute to the investee in the consolidated

financial statements. The investor shall recognize its share of the investee’s net profits or losses

after making appropriate adjustments according to the Company’s accounting principles and

operating period based on the fair values of the investee’s identifiable net assets.The unrealized profits or losses resulting from transactions between the investor and its

associate or joint venture shall be eliminated in proportion to the investor’s equity interest in

the investee based on which investment income or losses shall be recognized except the

transaction of investment or sale of assets is a business. Any losses resulting from transactions

between the investor and investee which are attributable to asset impairment shall be

recognized in full.The company’s net losses incurred by joint ventures or associates in addition to assuming

additional loss obligations are limited to the book value of long-term equity investments and

other long-term equity that essentially constitutes net investment in joint ventures or associates.If a joint venture or associated enterprise realizes net profits in the future the company resumes

recognizing its share of profits after the share of profits makes up for the share of unrecognized

losses.

(3) Disposal of long-term equity investment

When disposing long-term equity investment the difference between the proceeds actually

received and the carrying amount shall be recognized in profit or loss for the current period.

99Bengang Steel Plates Co. Ltd. Interim Report 2025

Partial disposal of long-term equity investments accounted for by the equity method and the

remaining equity is still accounted for by the equity method the other comprehensive income

recognized by the original equity method shall be carried forward according to the same basis

as the direct disposal of related assets or liabilities by the investee. All other changes in the

interests of the holders are carried forward to the current profit and loss on a pro rata basis.When an investor can no longer exercise joint control of or significant influence over an

investee due to disposal of equity investment or other reasons any other comprehensive income

previously recognized shall be accounted for on the same basis as would have been required if

the investee had directly disposed of the related assets or liabilities for the current period upon

discontinuation of the equity method. Other owner's equity change shall be transferred into

profit or loss of current period in full when the Company cease to adopt the equity method.When an investor can no longer control the investee due to partial disposal when the individual

financial statements are prepared the remaining equity can exercise joint control or significant

influence on the investee the equity method shall be used to account for the remaining equity.It is deemed that the equity method is adopted for adjustment since the acquisition and the

other comprehensive income recognized before the control of the investee is obtained is carried

forward on the same basis as the direct disposal of related assets or liabilities by the investee

because the equity method is used for accounting. The confirmed changes in other owners’

equity are carried forward to the current profit and loss on a pro rata basis. If the remaining

equity cannot exercise joint control or exert significant influence on the investee it shall be

recognized as a financial asset and the difference between its fair value and book value on the

date when control is lost shall be included in the current profit and loss and other

comprehensive income and other owner’s interests previously recognized shall be transferred

to profit or loss in full.If the equity investment of a subsidiary is disposed through multiple transactions until it loses

control which is a package transaction each transaction shall be accounted as a transaction

that disposes of the equity investment of the subsidiary and loses control. Each transaction

before the loss of control the difference between the disposal price and the book value of the

corresponding disposed part of long-term equity investment is firstly recognized as other

comprehensive income in individual financial statements and then transferred to the current

profit and loss when the control is lost. If it is not a package transaction each transaction shall

be accounted separately.

(14) Fixed assets

1. Recognition of Fixed assets

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The term "fixed assets" refers to the tangible assets held for the sake of producing commodities

rendering labor service renting or business management and of which useful life is in excess

of one fiscal year. No fixed asset may be recognized unless it simultaneously meets the

conditions as follows:

(1) The economic benefits pertinent to the fixed asset are likely to flow into the enterprise; and

(2) The cost of the fixed asset can be measured reliably.

Fixed assets are initially measured at cost (and considering the impact of expected dismantling

cost factors).Subsequent expenditures related to fixed assets are included in the cost of fixed assets when

the related economic benefits are likely to flow in and their costs can be reliably measured; the

book value of the replaced part is derecognized; all other subsequent expenditures are incurred

shall be included in the current profit and loss.

2. Fixed assets depreciation

Fixed assets are depreciated under the straight-line method. The depreciation rate is determined

according to the category of assets the useful life and the expected residual rate. If the

components of the fixed assets have different useful lives or provide the economic benefits in

a different way then different depreciation rate or method shall be applied and the depreciation

of the components shall be calculated separately.Details of classification depreciation period residual value rate and annual depreciation rate

are as follows:

Depreciation

Depreciation Residual Value

Category Depreciation method Rate

Period Rate (%)

(%)

Plants and Buildings straight line method 40 years 5.00 2.38

Machinery straight line method 17-24 years 5.00 3.96-5.59

Transportation and

straight line method 5-12 years 5.00 7.92-19.00

other equipment

4. Disposal of fixed assets

When a fixed asset is disposed or it is expected that no economic benefits will be generated

through use or disposal the recognition of fixed asset shall be de terminated. The amount of

disposal income of fixed assets raising from sell transfer scrapping or damage shall be

included in the current profit and loss after deducting its book value and related taxes.

(15) Construction in progress

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Construction in progress is measured at the actual cost incurred. The actual cost includes

construction costs installation costs borrowing costs that meet the capitalization conditions

and other necessary expenditures incurred before the construction in progress reaches its

intended use status. Construction in progress is transferred to fixed asset when it has reached

its working condition for its intended use and depreciation will be accrued from the next month.

(16) Borrowing costs

1. Principle of the recognition of capitalized borrowing costs

Where the borrowing costs incurred to an enterprise can be directly attributable to the

acquisition and construction or production of assets eligible for capitalization it shall be

capitalized and recorded into the costs of relevant assets. Other borrowing costs shall be

recognized as expenses on the basis of the actual amount incurred and shall be recorded into

the current profits and losses.Assets eligible for capitalization refer to the fixed assets investment property inventories and

other assets of which the acquisition and construction or production may take quite a long time

to get ready for its intended use or for sale.

2. The capitalization period of borrowing costs

The capitalization period shall refer to the period from the commencement to the cessation of

capitalization of the borrowing costs excluding the period of suspension of capitalization of

the borrowing costs.The borrowing costs shall not be capitalized unless they simultaneously meet the following

requirements:

(1) The asset disbursements have already incurred which shall include cash transferred non-

cash assets or interest bearing debts paid for the acquisition and construction or production

activities for preparing assets eligible for capitalization;

(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

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borrowing costs shall be suspended. If the interruption is a necessary step for making the

qualified asset under acquisition and construction or production ready for the intended use or

sale the capitalization of the borrowing costs shall continue. The borrowing costs incurred

during such period shall be recognized as expenses and shall be recorded into the profits and

losses of the current period till the acquisition and construction or production of the asset

restarts.

4. Method of calculating the capitalization rate and capitalized amount of borrowing costs

For interest expense (minus the income of interests earned on the unused borrowing loans as a

deposit in the bank or investment income earned on the loan as a temporary investment) and

the ancillary expense incurred to a specifically borrowed loan those incurred before a qualified

asset under acquisition construction or production is ready for the intended use or sale shall

be capitalized at the incurred amount when they are incurred and shall be recorded into the

costs of the asset eligible for capitalization.The Company shall calculate and determine the to-be-capitalized amount of interests on the

general borrowing by multiplying the weighted average asset disbursement of the part of the

accumulative asset disbursements minus the general borrowing by the capitalization rate of the

general borrowing used. The capitalization rate shall be calculated and determined in light of

the weighted average interest rate of the general borrowing.During the capitalization period the exchange difference between the principal and interest of

the foreign currency special loan is capitalized and included in the cost of the assets that meet

the capitalization conditions. Exchange differences arising from the principal and interest of

foreign currency borrowings other than foreign currency special borrowings are included in

the current profits and losses.

(17) Intangible Assets

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.

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Intangible assets with finite beneficial period shall be amortized under the straight-line method

during the period when the intangible asset can bring economic benefits to the enterprise. If it

is unable to estimate the beneficial period of the intangible asset it shall be regarded as an

intangible asset with uncertain service life and shall not be amortized.

2. Estimated useful lives of intangible assets with limited useful lives

Item Estimated useful life Criteria

Land use right 50 years Land use right certificate

Software 10 years Estimated useful life

3. Classification criteria for internal research phase and development phase

The expenditures for its internal research and development projects of an enterprise shall be

classified into research expenditures and development expenditures.Research phase refers to the phase of creative and planned investigation to acquire and study

to acquire and understand new scientific or technological knowledge.Development phase refers to the phase during which the result of research phase or other

knowledge is applied into certain projects or designs for the manufacturing of new or

substantially improved material device and product before commercial manufacturing and use.

4. Criteria of capitalization of development phase expenditures

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.

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If it is impossible to distinguish between expenditures in the research phase and expenditures

in the development phase all research and development expenditures incurred shall be

included in the current period's profit and loss.

(18) Impairment of long-term assets

For long-term assets such as long-term equity investments investment property under the cost

model fixed assets construction in progress right-of-use assets intangible assets with limited

useful lives and oil gas assets etc. the Company shall perform impairment tests at the period

end if there is clear indication of impairment. If the recoverable amounts of long-term assets

are less than their carrying amounts the carrying amounts of the assets shall be written down

to their recoverable amounts. The write-downs are recognized as impairment losses and

charged to current profit and loss. The recoverable amounts of long-term assets are the higher

of their fair values less costs to sell and the present values of the future cash flows expected to

be derived from the assets. The Company shall estimate its recoverable amount on an individual

basis. Where it is difficult to do so it shall determine the recoverable amount of the assets onthe basis of the asset group to which the asset belongs. The term "assets group” refers to a

minimum combination of assets by which the cash flows could be generated independently

The goodwill intangible assets with uncertain useful life and intangible assets not meeting the

expected condition for use the shall be subject to an impairment test at least at the end of each

year.When the Company makes an impairment test of assets it shall as of the purchasing day

apportion the carrying value of the business reputation formed by merger of enterprises to the

relevant asset groups by a reasonable method. Where it is difficult to do so it shall be

apportioned to the relevant combinations of asset groups. A related group of assets or

combination of asset groups is an asset group or combination of asset groups that can benefit

from the synergy effect of a business combination.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

105Bengang Steel Plates Co. Ltd. Interim Report 2025

recoverable amount of the relevant assets or combinations of the asset groups is lower than the

carrying value thereof it shall recognize the impairment loss of the business reputation.Impairment losses on long-term assets shall not be reversed in subsequent accounting periods

once recognized.

(19) Long-term deferred expense

The long-term deferred expense refers to the expenses incurred but shall be borne by current

and subsequent accounting period which is more than one year.The long-term deferred expense shall be amortized over its beneficiary period evenly.

(20) Contract liability

When either party to a contract has performed the Company shall present the contract in the

statement of financial position as a contract asset or a contract liability depending on the

relationship between the Company’s performance and the customer’s payment. If a customer

pays consideration or the Company has a right to an amount of consideration before the

Company transfers a good or service to the customer the Company shall present the contract

as a contract liability. Contract assets and contract liabilities under the same contract are

disclosed in net amount.

(21) Employee benefits

1. Accounting treatment for short employee benefit

The Company shall recognize in the accounting period in which an employee provides service

actually occurred short-term employee benefits as a liability with a corresponding charge to

the profit or loss or cost of an asset for the current period.Payments made by an enterprise of social security contributions for employees payments of

housing funds and union running costs employee education costs provided in accordance with

relevant requirements shall in the accounting period in which employees provide services be

calculated according to prescribed bases and percentages in determining the amount of

employee benefits.The employee welfare expenses incurred by the company are included in the current profit and

loss or related asset costs based on the actual amount when they actually occur. Among them

non-monetary benefits are measured at fair value.

2. Accounting treatment of post-employment benefits

106Bengang Steel Plates Co. Ltd. Interim Report 2025

(1) Defined contribution plan

The Company shall recognize in the accounting period in which an employee provides

service pension fund and unemployment fund for employees as a liability according to the

local government regulations. The amount shall be calculated according to local prescribed

bases and percentages in determining the amount of employee benefits with a

corresponding charge to the profit or loss or cost of an asset for the current period. In

addition the Company also participates in the enterprise annuity plan/supplementary

pension insurance fund approved by relevant state departments. The Company pays a

certain proportion of the total salary of employees to the annuity plan/local social insurance

agency and the corresponding expenses are included in the current profit and loss or

related asset cost.

(2) Defined benefit plan

None

3. Accounting treatment of termination benefits

The Company shall recognize an employee benefits liability for termination benefits with a

corresponding charge to the profit or loss for the current period at the earlier of the following

dates: when the Company cannot unilaterally withdraw the offer of termination benefits

because of an employment termination plan or a curtailment proposal; or when the Company

recognizes costs or expenses related to a restructuring that involves the payment of termination

benefits.

(22) Estimated liabilities

The obligation pertinent to a contingency shall be recognized as an estimated liability when

the following conditions are satisfied simultaneously:

(1) That obligation is a current obligation of the enterprise;

(2) It is likely to cause any economic benefit to flow out of the enterprise as a result of

performance of the obligation; and

(3) The amount of the obligation can be measured in a reliable way.

The estimated debts shall be initially measured in accordance with the best estimate of the

necessary expenses for the performance of the current obligation.To determine the best estimate an enterprise shall take into full consideration of the risks

uncertainty time value of money and other factors pertinent to the Contingencies. If the time

value of money is of great significance the best estimate shall be determined after discounting

the relevant future outflow of cash.

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The best estimate shall be conducted in accordance with the following situations respectively:

If there is a continuous range for the necessary expenses and if all the outcomes within this

range are equally likely to occur the best estimate shall be determined in accordance with the

average estimate within the range that is the average of the upper and lower limit.If there is not a sequent range for the necessary expenses and if the outcomes within this range

are not equally likely to occur the best estimate shall be determined as follows:

(1) If the Contingencies concern a single item it shall be determined in the light of the most

likely outcome.

(2) If the Contingencies concern two or more items the best estimate shall be calculated and

determined in accordance with all possible outcomes and the relevant probabilities.When all or some of the expenses necessary for the liquidation of an estimated debts of an

enterprise is expected to be compensated by a third party the compensation shall be separately

recognized as an asset only when it is virtually certain that the reimbursement will be obtained.The amount recognized for the reimbursement shall not exceed the book value of the estimated

debts.The company reviews the book value of the estimated liabilities on the balance sheet date. If

there is conclusive evidence that the book value does not reflect the current best estimate the

book value will be adjusted according to the current best estimate.

(23) Revenue

(1) The general principle of revenue recognition and measurement

The company shall recognise revenue when (or as) the company satisfies a performance

obligation when (or as) the customer obtains control of a promised good or service. Control of

a promised good or service refers to the ability to direct the use of and obtain substantially all

of the remaining benefits from it.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

108Bengang Steel Plates Co. Ltd. Interim Report 2025

amounts collected on behalf of third parties or amounts expected to be returned to customers.The company shall consider the terms of the contract and its customary business practices to

determine the transaction price. When determining the transaction price the company shall

consider the effects of all of the following: variable consideration the existence of a significant

financing component in the contract non-cash consideration and consideration payable to a

customer. The company determines the transaction price that includes variable consideration

at an amount that does not exceed the amount of accumulated recognized revenue that is

unlikely to be materially reversed when the relevant uncertainty is eliminated. If there is a

significant financing component in the contract the company shall recognise revenue at an

amount that reflects the price that a customer would have paid for the promised goods or

services if the customer had paid cash for those goods or services when (or as) they transfer to

the customer and use the effective interest method to amortize the difference between the

transaction price and the contract consideration during the contract period.The company transfers control of a good or service over time and therefore satisfies a

performance obligation and recognises revenue over time if one of the following criteria is

met. Otherwise the company satisfies the performance obligation at a point in time.(a) the customer simultaneously receives and consumes the benefits provided by the company’s

performance as the company performs;

(b) the company’s performance creates or enhances an asset that the customer controls as the

asset is created or enhanced; or

(c) the company’s performance does not create an asset with an alternative use to the company

and the company has an enforceable right to payment for performance completed to date.The company shall recognise revenue over time by measuring the progress towards complete

satisfaction of that performance obligation except where the performance progress cannot be

reasonably determined. The company considers the nature of the goods or services and adopts

the output method or the input method to determine the progress of performance. Where the

performance progress cannot be reasonable determined but the company expects to recover

the costs incurred in satisfying the performance obligation the company shall recognise

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;

109Bengang Steel Plates Co. Ltd. Interim Report 2025

(b) The company has transferred the legal title of the goods to the customer that is the

customer has the legal title to the goods;

(c) The company has transferred physical possession of the goods to the customer that is the

customer has taken possession of the goods;

(d) The company has transferred the significant risks and rewards of ownership of the goods

to the customer that is the customer has the significant risks and rewards of ownership of the

goods;

(e) The customer has accepted the promised goods or services.The Company determines whether it is the principal or agent when engaging in a transaction

based on whether it has control over the goods or services before transferring them to the

customer. If the Company is able to control the goods or services before transferring them to

the customer the Company is the principal and recognizes revenue based on the total

consideration received or receivable; otherwise the Company is the agent and recognizes

revenue based on the amount of commissions or fees it expects to be entitled to receive.

(2) The specific criteria of revenue recognition and measurement

Commodity sales contracts between companies and customers usually only include

performance obligations for the transfer of steel and other commodities. This type of

performance obligation is a performance obligation performed at a certain point in time. The

Company recognizes revenue when the customer obtains control of the relevant goods or

services. When judging whether the customer has obtained control of goods or services the

company considers the following signs:

The company obtains the current right of collection of receivables the legal ownership of the

goods is transferred to the customer the physical assets of the goods are transferred to the

customer the company transfers the main risks and rewards of the ownership of the goods to

the customer and the customer has accepted the goods.

(24) Contract costs

Contract costs include costs to fulfill a contract and incremental costs of obtaining a contract.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

110Bengang Steel Plates Co. Ltd. Interim Report 2025

(c) the costs are expected to be recovered.The company shall recognise as an asset the incremental costs of obtaining a contract with a

customer if the company expects to recover those costs.An asset recognised in accordance with contract costs shall be amortised in consistent with the

transfer to the customer of the goods or services to which the asset relates. The company may

recognise the incremental costs of obtaining a contract as an expense when incurred if the

amortisation period of the asset is one year or less.The company shall recognize an impairment loss in profit or loss to the extent that the carrying

amount of an asset related to contract assets exceeds:

(a) the remaining amount of consideration that the company expects to receive in exchange for

the goods or services to which the asset relates; less

(b) the costs that relate directly to providing those goods or services and that have not been

recognized as expenses.The company shall recognize in profit or loss a reversal of some or all of an impairment loss

previously recognized when the impairment conditions no longer exist or have improved. The

increased carrying amount of the asset shall not exceed the carrying amount that if no

impairment loss had been recognized previously.

(25) Government Subsidies

1. Types

A government subsidy means the monetary or non-monetary assets obtained free of charge

by the Company from the government. Government subsidies consist of the government

subsidies pertinent to assets and government subsidies pertinent to income.Government subsidies related to assets are government subsidies whose primary

condition is that an entity qualifying for them should purchase construct or otherwise

acquire long-term assets. The government subsidies related to incomes refers to

government subsidies other than those related to assets.The standard of the Company recognizing the government subsidies related to assets is:

an entity qualifying for them should purchase construct or otherwise acquire long-term

assets.

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The standard of the Company recognizing the government subsidies related to income is:

In addition to government subsidies related to assets government subsidies that have been

clearly targeted for subsidies.

2. Recognition

Government grants are recognized when the Company is able to meet the conditions

attached to them and is able to receive them.

3. Accounting treatment

Government subsidies related to assets shall be recognized by deducting the subsidies at

the caring amount of the assets or recognized as deferred income. Subsidies that

recognized as deferred income shall be recognized in profit or loss on a systematic basis

over the periods during the useful lives of the relevant assets (Subsidies related to daily

activities should be recorded in Other Income. Subsidies that unrelated to daily activities

should be recorded in Non-operating Income).The government subsidies related to incomes to compensate future expenses shall be

recognized as deferred income and transferred to current profit or loss (Subsidies related

to daily activities should be recorded in Other Income. Subsidies that unrelated to daily

activities should be recorded in Non-operating Income) in the period during which the

expenses compensation is recognized or deduct relevant cost or loss. Government

subsidies to compensate expenses or losses already incurred shall be recognized in current

profit and loss (Subsidies related to daily activities should be recorded in Other Income.Subsidies unrelated to daily activities should be recorded in Non-operating Income) or

deduct relevant cost or loss.The policy discount loans obtained by the company are divided into the following two

situations and are separately accounted for:

(a) The government allocates discounted funds to the loan bank and the loan bank

provides loans to the company at a policy preferential interest rate. The preferential

interest rate is used to calculate the relevant borrowing costs.(b) If the government directly allocates the discounted funds to the company the company

will offset the relevant borrowing costs with the corresponding discounts directly

accounted for the current profit or loss or recognized as deferred income.

112Bengang Steel Plates Co. Ltd. Interim Report 2025

(26) Deferred tax assets and deferred tax liabilities

Income tax includes current income tax and deferred income tax. Except for income tax

arising from business combinations and transactions or events directly recorded in owners'

equity (including other comprehensive income) the Company records current income tax and

deferred income tax in current profit or loss.Deferred tax assets and deferred tax liabilities are calculated based on the difference between

the tax bases of assets and liabilities and their carrying amounts (temporary differences).Income tax includes current income tax and deferred income tax. Except for income tax

arising from business mergers and transactions or events that are directly included in owner's

equity (including other comprehensive income) the company will include current income tax

and deferred income tax in current profit and loss.Deferred income tax assets and deferred income tax liabilities are calculated and confirmed

based on the difference (temporary difference) between the tax base of assets and liabilities

and their book value.An enterprise shall recognize the deferred income tax assets arising from a deductible

temporary difference to the extent of the amount of the taxable income which it is most likely

to be obtained and which can be deducted from the deductible temporary difference. As for

any deductible loss or tax deduction that can be carried forward to the next year the

corresponding deferred income tax assets shall be determined to the extent that the amount of

future taxable income to be offset by the deductible loss or tax deduction to be likely obtained.All taxable temporary differences shall be recognized as deferred tax liabilities with certain

limited exceptions.Exceptions when deferred tax assets and deferred tax liabilities are not recognized include:

- 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.

113Bengang Steel Plates Co. Ltd. Interim Report 2025

For taxable temporary differences related to investments in subsidiaries associates and joint

ventures deferred income tax liabilities are recognized unless the company can control the

timing of the reversal of the temporary differences and the temporary differences are likely

not to be transferred back in the foreseeable future. For deductible temporary differences

related to investments in subsidiaries associates and joint ventures when the temporary

differences are likely to be reversed in the foreseeable future and are likely to be used to

deduct the taxable income of deductible temporary differences in the future income tax assets

are recognized.On the balance sheet date deferred income tax assets and deferred income tax liabilities are

measured at the applicable tax rate during the period when the relevant assets are expected to

be recovered or the relevant liabilities are expected to be recovered in accordance with the

provisions of the tax law.On the balance sheet date the company reviews the book value of deferred income tax assets.If it is probable that sufficient taxable income cannot be obtained in the future to offset the

benefits of deferred income tax assets the book value of the deferred income tax assets shall

be written down. When it is possible to obtain sufficient taxable income the reduced amount

shall be reversed.When the Company has the statutory right to offset and intend to offset or obtain assets and

pay off liabilities at the same time the current income tax assets and current income tax

liabilities are presented at the net amount after offsetting.An entity shall offset deferred tax assets and deferred tax liabilities if and only if: (a) the

entity has a legally enforceable right to set off current tax assets against current tax liabilities;

and (b) deferred income tax assets and deferred income tax liabilities are related to income

taxes levied by the same tax collection and administration department on the same taxpayer

or to different taxpayers but in each future period of significant deferred income tax assets

and liabilities reversal the taxpayers involved intend to settle the current income tax assets

and liabilities on a net basis or to acquire assets and settle liabilities at the same time.

(27) Leases

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

114Bengang Steel Plates Co. Ltd. Interim Report 2025

period of time in exchange for consideration the contract is or contains a lease.For a contract that contains a lease component and one or more additional lease or non-lease

components a lease shall allocate the consideration in the contract to each lease component

on the basis of the relative stand-alone price of the lease component and the aggregate stand-

alone price of the non-lease components.

1. The company as the lessee

(1) Right-of-use assets

On the start date of the lease term the company recognizes the right-of-use asset for leases

other than short-term leases and low-value asset leases. Right-of-use assets are initially

measured at cost.This cost includes:

* The initial measurement amount of the lease liability;

* If there is a lease incentive for the lease payment paid on or before the start of the lease

term the relevant amount of the lease incentive already enjoyed shall be deducted;

* The initial direct expenses incurred by the company;

* The company expects to incur costs for dismantling and removing leased assets

restoring the site where leased assets are located or restoring leased assets to the state

agreed upon in the lease terms but does not include the costs incurred for the

production of inventory.The company uses the straight-line method to depreciate the right-of-use assets. If it can be

reasonably determined that the ownership of the leased asset will be obtained at the end of the

lease term the company shall depreciate the leased asset during the remaining useful life;

otherwise the leased asset will be depreciated during the shorter period of the lease term and

the remaining useful life of the leased asset .The company determines whether the right-of-use asset has been impaired in accordance with

the principles described in "3. (18) Long-term asset impairment" in this note and conducts

accounting treatment for the identified impairment loss.

(2) Lease liabilities

At the beginning of the lease term the company recognizes lease liabilities for leases other

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

115Bengang Steel Plates Co. Ltd. Interim Report 2025

include:

* Fixed payment (including in-substance fixed payment) less any lease incentives

receivable;

* Variable lease payments that depend on an index or a ratio;

* Amounts expected to be payable by the lease under residual value guarantees;

* The exercise price of the purchase option if the lease is reasonably certain to exercise that

option;

* Payments of penalties for terminating the lease if the lease term reflects the lessee

exercising an option to terminate the lease;

The company uses the interest rate implicit in the lease as the discount rate but if the interest

rate implicit in the lease cannot be reasonably determined the company's incremental

borrowing interest rate is used as the discount rate.The company calculates the interest expense of the lease liability during each period of the

lease term according to a fixed periodic interest rate and includes it in the current profit and

loss or the cost of related assets.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.

116Bengang Steel Plates Co. Ltd. Interim Report 2025

Short-term lease refers to a lease that does not include purchase options for a lease period not

exceeding 12 months at the beginning of the lease period. Low-value asset leasing refers to a

lease with a lower value when a single leased asset is a new asset. If the company subleases or

expects to sublease the leased assets the original lease is not a low-value asset lease.

(4) Lease modifications

The lease shall account for a lease modification as a separate lease if both:

* The modification increases the scope of the lease by adding the right to use one or more

underlying assets;

* the consideration for the lease increases by an amount commensurate with the stand-alone

price for the increase in scope and any appropriate adjustment to that stand-alone price to

reflect the circumstances of the particular contract.For a lease modification that is not accounted for as a separate lease at the effective date of the

lease modification a lessee shall allocate the consideration in the modified contract determine

the lease term of the modified lease and remeasure the lease liabilities by 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

117Bengang Steel Plates Co. Ltd. Interim Report 2025

payments that are not included in the lease receipts are included in the current profit and loss

when they actually occur.

(2) Accounting treatment of finance leasing

On the start date of the lease the company recognizes the finance lease receivables for the

finance lease and terminates the recognition of the finance lease assets. When the company

initially measures the finance lease receivables the net lease investment is taken as the entry

value of the financial lease receivables. The net lease investment is the sum of the unguaranteed

residual value and the present value of the lease payment not yet received at the beginning of

the lease term discounted at the interest rate implicit in the lease.The company calculates and recognizes the interest income for each period of the lease term

based on a fixed periodic interest rate. The derecognition and impairment of finance lease

receivables shall be accounted for in accordance with "3. (10) Financial Instruments" in this

Note.Variable lease payments that are not included in the measurement of the net lease investment

are included in the current profit or loss when they actually occur.A lessor shall account for a modification to a finance lease as a separate lease if both:

* The modification increases the scope of the lease by adding the right to use one or more

underlying assets;

* The consideration for the lease increases by an amount commensurate with the stand-alone

price for the increase in scope and any appropriate adjustments to that stand-alone price to

reflect the circumstances of the particular contract.For a modification to a finance lease that is not accounted for as a separate lease a lessor shall

account for the modification as follows:

* If the lease would have been classified as an operating lease had the modification been in

effect at the inception date the lessor shall account for the lease modification as a new lease

from the effective date of the modification; and measure the carrying amount of the underlying

assets as the net investment in the lease immediately before the effective date of the lease

modification.* If the change takes effect on the lease start date the lease will be classified as a financiallease and the company will perform accounting treatment in accordance with the policy of “3.

(10) Financial Instruments” in this Note on the modification or re-negotiation of the contract.

3. Sale and leaseback transaction

The company evaluates and determines whether the asset transfer in the sale and leaseback

118Bengang Steel Plates Co. Ltd. Interim Report 2025

transaction is a sale in accordance with the principles described in "3. (23) Revenue" of this

Note.

(1) As the lessee

If the transfer of an asset in the sale and leaseback transaction is a sale the company as the

lessee measures the right-of-use asset arising from the leaseback at the proportion of the

previous carrying amount of the asset that relates to the right-of-use retained by the lessee and

recognize only the amount of any gain or loss that relates to the rights transferred to the lessor.For details on the subsequent measurement of right-of-use assets and lease liabilities and lease

changes after the commencement date of the lease term please refer to Note III. (27) Leases 1.The Company as Lessee. When subsequently measuring the lease liabilities arising from a sale

and leaseback the Company determines the lease payments or the modified lease payments in

a manner that does not result in the recognition of gains or losses related to the right of use

acquired through the leaseback.If the asset transfer in the sale and leaseback transaction does not belong to the sale the

company as the lessee continues to recognize the transferred assets and at the same time

recognize a financial liability equal to the transfer proceeds. For the accounting treatment of

financial liabilities please refer to "3. (10) Financial Instruments" in this note.

(2) As a lessor

If the asset transfer in the sale and leaseback transaction is a sale the company acts as the lessor

to account for the purchase of the asset and the asset lease is accounted for in accordance with

the aforementioned "2. The company as the lessor" policy; in the sale and leaseback transaction

If the transfer of assets is not a sale the company as the lessor does not recognize the transferred

assets but recognizes a financial asset equal to the transfer proceeds. For the accounting

treatment of financial assets please refer to "3. (10) Financial Instruments" in this note.

(28) Debt restructuring

1. The company as the creditor

The Company terminates the recognition of claims when the contractual right to collect cash

flows from the claims terminates. If debt is restructured by using assets to pay off debts or by

converting debts into equity instruments the company will recognize the relevant assets when

they meet their definition and recognition conditions.If debt restructuring is carried out by repaying debts with assets the transferred non-financial

assets shall be measured at cost at initial recognition. The cost of inventories includes the fair

value of waived claims and other costs directly attributable to the asset incurred in bringing the

119Bengang Steel Plates Co. Ltd. Interim Report 2025

asset to its present location and condition such as taxes transportation handling charges

insurance etc. The cost of an investment in an associate or joint venture includes the fair value

of waived claims and other costs such as taxes directly attributable to the asset. The cost of

investment property includes the fair value of claims relinquished and other costs such as taxes

directly attributable to the asset. The cost of fixed assets includes the fair value of waived

claims and other costs directly attributable to the asset incurred before the asset is ready for its

intended use such as taxes transportation costs handling charges installation costs

professional service fees etc. The cost of biological assets includes the fair value of waived

claims and other costs directly attributable to the asset such as taxes transportation costs

insurance premiums etc. The cost of an intangible asset includes the fair value of claims

waived and other costs such as taxes that are directly attributable to bringing the asset to its

intended use. If a debt restructuring by converting debt into equity instruments results in the

creditor converting its claims into equity investments in associates or joint ventures the

Company measures its initial investment cost at the fair value of the claims waived and other

costs such as taxes directly attributable to the asset. The difference between the fair value and

the book value of the waived claims is included in the current profit and loss. If the debt

restructuring is carried out by modifying other terms the Company shall recognize and

measure the restructured claims in accordance with "III. (10) Financial Instruments" of this

Note.When multiple assets are used to settle debts or for debt restructuring the Company shall first

recognize and measure the financial assets acquired and the restructured claims in accordance

with Note III. (10) Financial Instruments. It shall then allocate the net amount of the fair value

of the waived claims after deducting the recognized amounts of the acquired financial assets

and the restructured claims in accordance with the fair value ratio of the various assets other

than the acquired financial assets and on this basis determine the cost of each asset separately

in accordance with the above method. The difference between the fair value and the carrying

amount of the waived claim should be included in the current profit and loss.

2. The company as the debtor

The Company derecognizes a debt when the present obligation for the debt is discharged.If debt restructuring is carried out by settling debts with assets the Company shall terminate

the recognition when the relevant assets and the debts settled meet the conditions for

termination of recognition and the difference between the book value of the debts settled and

the book value of the transferred assets shall be included in the current profit and loss.

120Bengang Steel Plates Co. Ltd. Interim Report 2025

In case of debt restructuring by converting debt into equity instruments the Company shall

derecognize the debts paid when they meet the derecognition conditions. Equity instrument

shall be measured at fair value at initial recognition. If the fair value of an equity instrument

cannot be measured reliably it is measured at the fair value of the debt settled. The difference

between the carrying amount of the debt settled and the amount recognized as an equity

instrument should be recognized in the current period's profit or loss.If debt restructuring is carried out by modifying other terms the Company shall recognize and

measure the restructured debt in accordance with “III. (10) Financial Instruments” of this Note.If multiple assets are used to repay debts or a combination is used to restructure debt the

company shall confirm and measure equity instruments and restructured debts in accordance

with the aforementioned methods. The difference between the carrying amount of the debt

settled and the sum of the carrying amount of the transferred assets and the recognized amount

of the equity instruments and restructured debts is included in the current period's profit and

loss.

(29) Major accounting estimates and judgments

When preparing financial statements the Company's management needs to use estimates and

assumptions which will affect the application of accounting policies and the amount of assets

liabilities income and expenses. Actual conditions may differ from these estimates. The

management of the company continuously evaluates the judgment of key assumptions and

uncertainties involved in the estimation and the impact of changes in accounting estimates

will be recognized in the current and future periods.The main uncertainties in the estimated amount are as follows:

1. Measurement of expected credit losses

The company calculates the expected credit loss through the default risk exposure and the

expected credit loss rate and determines the expected credit loss rate based on the default

probability and the default loss rate. When determining the expected credit loss rate the

company uses internal historical credit loss experience and other data and adjusts the

historical data in combination with current conditions and forward-looking information.When considering forward-looking information the indicators used by the Company include

the risk of economic fluctuation the expected increase in unemployment rate changes in the

external market environment technological environment and customer conditions. The

Company regularly monitors and reviews assumptions related to the calculation of expected

credit losses.

121Bengang Steel Plates Co. Ltd. Interim Report 2025

2. Inventory ImpairmentAs mentioned in note 3 (11) Inventory under “3 Significant accounting policies andaccounting estimates” the Company regularly estimates the net realizable value of the

inventory and recognizes the difference in inventory cost higher than the net realizable value.When estimating the net realizable value of inventory the Company considers the purpose

of holding the inventory and uses the available information as the basis for estimation

including the market price of the inventory and the Company's past operating costs. The

actual selling price completion cost sales expenses and taxes of the inventory may change

according to changes in market sales conditions production technology or the actual use of

the inventory. Therefore the amount of inventory depreciation reserve may change according

to the above reasons. Adjustments to the inventory impairment will affect the current profit

and loss.

3. Impairment of other assets except inventory and financial assets

As mentioned in note 3 (18) Long-term Asset Impairment the company performs an

impairment assessment on assets other than inventory and financial assets on the balance

sheet date to determine whether the recoverable amount of the asset has fallen to a lower

level than its book value. If the situation shows that the book value of the long-term assets

may not be fully recovered the relevant assets will be deemed to be impaired and the

impairment loss will be recognized accordingly.The recoverable amount is the higher of the net value of the fair value of the asset (or asset

group) minus the disposal expenses and the present value of the asset (or asset group) 's

expected future cash flow. Because the Company cannot reliably obtain the public market

price of assets (or asset groups) and cannot reliably and accurately estimate the fair value of

assets. Therefore the Company regards the present value of the expected future cash flow as

the recoverable amount. When estimating the present value of future cash flows it is

necessary to make a significant judgment on the output selling price related operating costs

of the products produced by the asset (or asset group) and the discount rate used in

calculating the present value. The Company will use all available relevant information when

estimating the recoverable amount including the prediction of output selling price and

related operating costs based on reasonable and supportable assumptions.

4. Depreciation and amortization of assets such as fixed assets and intangible assets

As described in note 3 (14) Fixed Assets and note 3 (17) Intangible Assets the company shall

accrue depreciation for the fixed assets and amortization for intangible assets within the

useful life after considering their residual value. The company regularly reviews the useful

122Bengang Steel Plates Co. Ltd. Interim Report 2025

life of related assets to determine the amount of depreciation and amortization expenses to

be included in each reporting period. The useful life of assets is determined by the company

based on past experience with similar assets and in combination with anticipated

technological changes. If the previous estimates change significantly the depreciation and

amortization expenses will be adjusted in the future.

5. Deferred tax assets

When it is estimated that sufficient taxable income can be obtained in the future to use the

unrecovered tax losses and deductible temporary differences the relevant deferred tax assets

are calculated and confirmed on the basis of the applicable income tax rate during the period

when the asset is expected to be recovered and the amount of taxable income is limited to

deductible tax losses and deductible temporary differences likely to be obtained by the

Company. The Company needs to use judgment to estimate the time and amount of future

taxable income and make reasonable estimates and judgments on the future applicable

income tax rate according to the current tax policy and other related policies to determine the

deferred tax assets that should be recognized. If the time and amount of profits actually

generated in the future period or the actual applicable income tax rate are different from the

management's estimate the difference will have an impact on the amount of deferred tax

assets.

(30) Methods for determining materiality standards and basis for selection

Items Materiality Standards

Material Accounts receivable The company considers accounts receivable exceeding RMB 5 million as material accounts receivable.Material Accounts payable The company considers accounts payable exceeding RMB 5 million as material accounts payable.Material Other payables The company considers other payables exceeding RMB 5 million as material other payables.The company considers the top 10 projects transferred to fixed assets during

Material Construction in the current period or the top 10 projects with a balance at the end of the period

progress and a total amount exceeding RMB 50 million as material construction in

progress.Material Joint ventures and The company considers investments in joint ventures or associated enterprises

associates with an ending balance of more than RMB 100 million as material joint ventures or associated enterprises.Subsidiaries whose total assets/total revenue/total profit exceed 15% of the

Material Subsidiaries group's total assets/total revenue/total profit are considered as material

subsidiaries.

(31) Change of significant accounting policy and accounting estimate

1. Change of major accounting policy during this reporting period

There is no change of major accounting policy during the reporting period.

2. Change of accounting estimate during the reporting period

There is no significant changes in accounting estimates during the reporting period.

123Bengang Steel Plates Co. Ltd. Interim Report 2025

4. Taxes

(1) Major type of taxes and corresponding tax rates

Tax Taxation Method Tax Rate

The output tax is calculated based on the

sales of goods and taxable services

calculated in accordance with the tax law.Value-added Tax (VAT) After deducting the input tax that is 6% 9% 13%

allowed to be deducted in the current

period the difference is the value-added

tax payable.Based on VAT and business tax actually

City maintenance and construction tax 5% 7%

paid

See the table below

Corporate income tax Based on taxable income

for details

Notes to taxpayers with different corporate income tax rates:

Name of the taxpayers Income tax rate (%)

Bengang Steel Plates Co. Ltd 15

Shanghai Bengang Metallurgy Science and Technology Co. Ltd. 25

Benxi Bengang Steel Sales Co. Ltd. 25

Bengang Posco Cold-rolled Sheet Co. Ltd. 15

Tianjin Bengang Steel & Iron Trading Co. Ltd. 25

Changchun Bengang Steel & Iron Sales Co. Ltd. 25

Yantai Bengang Steel & Iron Sales Co. Ltd. 25

Guangzhou Bengang Steel & Iron Trading Co. Ltd. 25

Dalian Benruitong Automobile Material Technology Co. Ltd. 25

Shenyang Bengang Metallurgical Science and Technology Co. Ltd. 25

Northern Hengda Logistics Co. Ltd. 25

Green Gold (Benxi) Renewable Resources Co. Ltd. 25

(2) Tax Preference

124Bengang Steel Plates Co. Ltd. Interim Report 2025

1. The company has obtained a High-Tech Enterprise Certificate certificate number:

GR202421001555 valid from November 27 2024 to November 27 2027. The company is

subject to a reduced corporate income tax rate of 15%.

2. Bengang Posco Cold-Rolled Sheet Co. Ltd. the subsidiary of the Company has obtained

the High-tech Enterprise Certificate certificate number: GR202321001624; valid from

December 20 2023 to December 20 2026. Benxi Steel Posco Cold-Rolled Sheet Co. Ltd.pays corporate income tax at a reduced tax rate of 15%.

3. On December 30 2021 the Ministry of Finance and the State Administration of Taxation

issued the "Announcement on Improving the Value-Added Tax Policy for Comprehensive

Utilization of Resources" (Announcement No. 40 of the Ministry of Finance and the State

Administration of Taxation in 2021). The announcement took effect on March 1 2022. The

original "Notice of the Ministry of Finance and the State Administration of Taxation on

Issuing the "Catalogue of Value-Added Tax Preferential Policies for Comprehensive

Utilization of Resources Products and Services" (Finance and Taxation [2015] No. 78) was

abolished at the same time except for "technical standards and related conditions". The

electricity and heat produced and sold by the Energy Development Branch of Benxi Iron and

Steel Co. Ltd. a branch of the Company are items listed in the "Catalogue of Value-Added

Tax Preferential Terms for Comprehensive Resource Utilization Products and Services" and

enjoy the value-added tax refund policy.

4. On September 3 2023 the Ministry of Finance and the State Administration of Taxation

issued the "Announcement on the VAT Additional Deduction Policy for Advanced

Manufacturing Enterprises" (Announcement No. 43 of the Ministry of Finance and the State

Administration of Taxation in 2023). From January 1 2023 to December 31 2027 this

announcement allows advanced manufacturing enterprises to deduct the payable VAT by

adding 5% to the current deductible input tax. Bengang Posco Cold-Rolled Sheet Co. Ltd.a subsidiary of the Company belongs to the advanced manufacturing industry and enjoys the

VAT additional deduction policy.

125Bengang Steel Plates Co. Ltd. Interim Report 2025

5. Notes to the consolidated financial statements

(1) Cash at bank and on hand

Items 2025/06/30 2024/12/31

Cash on hand

Digital Currency

Cash at bank 880662131.03 363006448.43

Other monetary funds 1001459617.18 863683251.57

Funds placed in a finance company account 237849896.52 1227198770.48

Total 2119971644.73 2453888470.48

Including：Total amount deposited abroad

Funds deposited overseas with

restrictions on repatriation

Notes: As at 30 June 2025 bank acceptance deposit of RMB 1001459617.18 was not recognized as

cash and cash equivalents in the cash flow statement.

(2) Notes receivable

1. Notes receivable disclosed by category

Items 2025/06/30 2024/12/31

Bank acceptance bill 114107007.89 241529481.42

Commercial acceptance bill 306676013.34 365750000.00

Total 420783021.23 607279481.42

126Bengang Steel Plates Co. Ltd. Interim Report 2025

2. Notes receivable disclosed by bad debt accrual method

2025/06/302024/12/31

Provision for bad Provision for bad

Carrying amount Carrying amount

Items debts debts

Book value Book value

Percentage Bad debts Percentage Bad debts

Amount Amount Amount Amount

(%) ratio (%) (%) ratio (%)

Provision for bad

debts individually

Provision for bad

debts based on

420783021.23100.00420783021.23607279481.42100.00607279481.42

portfolio of credit

risk characteristics

Total 420783021.23 100.00 420783021.23 607279481.42 100.00 607279481.42

127Bengang Steel Plates Co. Ltd. Interim Report 2025

Provision for bad debts based on portfolio of credit risk characteristics

Portfolio items:

2025/06/30

Items

Notes receivable Provision for bad debts Bad debts ratio (%)

Commercial acceptance bill 306676013.34

Bank acceptance bill 114107007.89

Total 420783021.23

3. The pledged acceptance bill

Items Notes receivable pledged at the end of period

Bank acceptance bill 67041187.99

Commercial acceptance bill

Total 67041187.99

4. The amount of notes receivable endorsed over or discounted but not yet matured

Amount terminated at the end Amount was not terminated at

Items

of the period the end of the period

Bank acceptance bill 4517795874.04 5065819.90

Commercial acceptance bill 306676013.34

Total 4517795874.04 311741833.24

(3) Accounts receivable

1. Accounts receivable disclosed by aging

Items 2025/06/30 2024/12/31

Within 1 year (inclusive) 930029176.10 478210867.53

1-2 years (inclusive) 9502894.65 5786445.58

2-3 years (inclusive) 4952094.14 28559402.34

3-4 years (inclusive) 28559318.54 557413.41

4-5 years (inclusive) 556497.21 5592931.88

over 5 years 374102284.68 379435859.17

128Bengang Steel Plates Co. Ltd. Interim Report 2025

Items 2025/06/30 2024/12/31

Subtotal 1347702265.32 898142919.91

Less: Provision for bad debts 414459100.51 396658838.18

Total 933243164.81 501484081.73

129Bengang Steel Plates Co. Ltd. Interim Report 2025

2. Accounts receivable disclosed by the bad debt accrual method

2025/06/302024/12/31

Gross carrying amount Provision for bad debts Gross carrying amount Provision for bad debts

Bad

Items

Percentage debts Book value Percentage Percentage Book value

Amount Amount Amount Amount

(%) ratio (%) (%)

(%)

Tested for

impairment 324142239.74 24.05 324142239.74 100.00 334963124.35 37.30 334963124.35 100.00

individually

Tested for

impairment 1023560025.58 75.95 90316860.77 8.82 933243164.81 563179795.56 62.70 61695713.83 10.95 501484081.73

by portfolio

Include:

Aging

1023560025.5875.9590316860.778.82933243164.81563179795.5662.7061695713.8310.95501484081.73

portfolio

Risk-free

portfolio

130Bengang Steel Plates Co. Ltd. Interim Report 2025

2025/06/302024/12/31

Gross carrying amount Provision for bad debts Gross carrying amount Provision for bad debts

Bad

Items

Percentage debts Book value Percentage Percentage Book value

Amount Amount Amount Amount

(%) ratio (%) (%)

(%)

Total 1347702265.32 100.00 414459100.51 933243164.81 898142919.91 100.00 396658838.18 501484081.73

131Bengang Steel Plates Co. Ltd. Interim Report 2025

Significant accounts receivables tested for impairment individually:

2025/06/302024/12/31

Bad

debt

Company Provision for Carrying Provision for

Carrying amount s Reason amount bad debts

bad debts

ratio

(%)

Benxi Nanfen Disconti

Xinhe nued

100.

Metallurgical 48196244.68 48196244.68 48196244.68 48196244.68

00

Furnace Material

Co. Ltd

Brilliance Bankrup

100.

Automotive Group 275945995.06 275945995.06 tcy 286766879.67 286766879.67

00

Holdings Co. Ltd.Total 324142239.74 324142239.74 334963124.35 334963124.35

Provision for bad debts based on portfolio of credit risk characteristics

Provision for bad debts by portfolio: Aging analysis

2025/06/30

Items

Account Receivable Provision for bad debts Bad debt ratio（%）

Within 1 year

930029176.109300291.791.00

(inclusive)

1-2 years (inclusive) 9502894.65 950289.47 10.00

2-3 years (inclusive) 4952094.14 990418.82 20.00

3-4 years (inclusive) 28559318.54 28559318.54 100.00

4-5 years (inclusive) 556497.21 556497.21 100.00

over 5 years 49960044.94 49960044.94 100.00

Total 1023560025.58 90316860.77

3. The provision for bad debts accrued reversed or recovered in the current period

132Bengang Steel Plates Co. Ltd. Interim Report 2025

Changes during the current period

Write-off

Items 2024/12/31 Reversed or Other 2025/06/30

Accrued or Write-

recovered changes

back

Provision

for bad 396658838.18 28621146.94 10820884.61 414459100.51

debts

Total 396658838.18 28621146.94 10820884.61 414459100.51

Significant amount of bad debt provision recovered or reversed during the period:

Basis for determining

Reversed or Recovered the original bad debt

Company Reason

recovered amount method provision and its

reasonableness

Brilliance

Debt restructuring

Automotive Group 10820884.61 Repayment Bank deposit

agreements

Holdings Co. Ltd.Total 10820884.61

4. Top five debtors and contract assets at the end of the period

Percentag

Accounts Contract

e(%) to Provision for

Company receivable at assets at Total

Total bad debts

period end period end

amount

Angang Group

International

Economic & 579141895.93 579141895.93 42.97 5791418.96

Trade Co. Ltd.Benxi Branch

Brilliance

Automotive

275945995.06275945995.0620.48275945995.06

Group Holdings

Limited

133Bengang Steel Plates Co. Ltd. Interim Report 2025

Percentag

Accounts Contract

e(%) to Provision for

Company receivable at assets at Total

Total bad debts

period end period end

amount

Benxi Beiying

Iron and Steel 65344301.60 65344301.60 4.85 653443.02

(Group) Co. Ltd.Liaoning North

Coal Chemical

56241715.6756241715.674.175241185.70

Industry (Group)

Co. Ltd.Bengang

Refractories Co. 48439238.13 48439238.13 3.59 27525071.75

Ltd.Total 1025113146.39 1025113146.39 76.06 315157114.49

(4) Accounts receivable financing

1. Accounts receivable financing by category

Items 2025/06/30 2024/12/31

Notes Receivable 5552656.65 64399942.70

Accounts Receivable

Total 5552656.65 64399942.70

134Bengang Steel Plates Co. Ltd. Interim Report 2025

(5) Prepayments

1. Prepayments disclosed by aging

2025/06/302024/12/31

Aging Percentage Percentage

Amount Amount

(%)(%)

Within 1 year

758650468.4692.40370426337.8394.54

(inclusive)

1-2 years (inclusive) 51733521.39 6.30 8643434.04 2.21

2-3 years (inclusive) 7616027.07 0.93 10372837.63 2.65

Over 3 years 3032048.37 0.37 2380526.37 0.61

Total 821032065.29 100.00 391823135.87 100.00

Notes: There were no outstanding prepayments over 1 year.

2. Top five prepaid companies at the end of the period

Name of the company Ending balance Percentage (%)

Angang Group International Economic & Trade Co.

386757348.1847.11

Ltd. Benxi Branch

China Railway Shenyang Bureau Group Co. Ltd.

64189262.357.82

Shenyang Railway Logistics Center

Shanxi Coking Coal Energy Group Co. Ltd. 62812041.38 7.65

Hangzhou Hangyang Air Separation Spare Parts Co.

56204279.006.85

Ltd.State Grid Liaoning Electric Power Co. Ltd. Benxi

50000000.006.09

Power Supply Company

Total 619962930.91 75.52

(6) Other receivables

Items 2025/06/30 2024/12/31

Interest receivables

Dividend receivables

135Bengang Steel Plates Co. Ltd. Interim Report 2025

Items 2025/06/30 2024/12/31

Other receivables 16354769.47 149015138.26

Total 16354769.47 149015138.26

1. Other receivables

(1) Other receivables disclosed by aging

Items 2025/06/30 2024/12/31

Within 1 year (inclusive) 2389539.78 58452918.98

1-2 years (inclusive) 2612106.55 91693078.45

2-3 years (inclusive) 16979176.66 13520953.62

3-4 years (inclusive) 784068.83 3962574.01

4-5 years (inclusive) 3717335.08 842882.51

over 5 years 52979511.11 52141851.60

Subtotal 79461738.01 220614259.17

Less: Provision for bad debts 63106968.54 71599120.91

Total 16354769.47 149015138.26

136Bengang Steel Plates Co. Ltd. Interim Report 2025

(2) Disclosed by bad debt accrual method

2025/06/302024/12/31

Carrying amount Provision for bad debts Carrying amount Provision for bad debts

Items

Percentage Bad debts Book value Percentage Bad debts Book value

Amount Amount Amount Amount

(%) ratio (%) (%) ratio (%)

Provision for bad

18192317.0022.8918192317.00100.0018192317.008.2518192317.00100.00

debts individually

Provision for bad

debts based on

61269421.0177.1144914651.5473.3116354769.47202421942.1791.7553406803.9126.38149015138.26

portfolio of credit

risk characteristic

Include:

Aging portfolio 60872327.09 76.61 44914651.54 73.79 15957675.55 202194971.97 91.65 53406803.91 26.41 148788168.06

Risk-free

397093.920.50397093.92226970.200.10226970.20

portfolio

Total 79461738.01 100.00 63106968.54 16354769.47 220614259.17 100.00 71599120.91 149015138.26

137Bengang Steel Plates Co. Ltd. Interim Report 2025

Significant other receivables tested for impairment individually:

2025/06/302024/12/31

Bad

Company Carrying Provision for debts Carrying Provision for

Reason

amount bad debts ratio amount bad debts

(%)

Benxi Iron

and Steel

(Group) No.

3 12504978.59 12504978.59 100.00 Discontinued 12504978.59 12504978.59

Architectural

Engineering

Co. Ltd.Total 12504978.59 12504978.59 12504978.59 12504978.59

Provision for bad debt by portfolio of credit risk characteristics:

Portfolio accrual item: Aging portfolio

2025/06/30

Items

Amount Provision for bad debts Percentage（%）

Within 1 year

2025134.7020251.351.00

(inclusive)

1-2 year (inclusive) 2579417.71 257941.77 10.00

2-3 year (inclusive) 14539145.32 2907829.06 20.00

3-4 year (inclusive) 784068.83 784068.83 100.00

4-5 year (inclusive) 3072337.08 3072337.08 100.00

Aver 5 years 37872223.45 37872223.45 100.00

Total 60872327.09 44914651.54

(3) Information of provision for bad debts

138Bengang Steel Plates Co. Ltd. Interim Report 2025

Stage one Stage two Stage three

lifetime expected lifetime expected

12-month

Provision for bad debts credit losses (credit credit losses (credit Total

expected credit

impairment has not impairment has

losses

occurred) already occurred)

Balance at the end of the previous

582286.0211629495.4359387339.4671599120.91

year

Beginning balance during current

period

--Transfer to the second stage -515883.54 515883.54

--Transfer to the third stage -784068.83 784068.83

--Write-back to the second stage

--Write-back to the first stage

Accrual for the current period -46151.13 -8195539.31 -250461.93 -8492152.37

Reversal during the current period

Write-back of the current period

Write-off during the current period

Other changes

Ending balance 20251.35 3165770.83 59920946.36 63106968.54

(4) Information of provision reversal or recovery of bad debts of current period

Changes during the current period

Reversal

Items 2024/12/31 Write-back 2025/06/30

Accrual or Others

or write-off

recovered

Bad debt

provision

71599120.91-8492152.3763106968.54

for other

receivables

Total 71599120.91 -8492152.37 63106968.54

(5) Other receivables disclosed by nature

139Bengang Steel Plates Co. Ltd. Interim Report 2025

Nature 2025/06/30 2024/12/31Compensation for the “Living

87177700.00Show Belt” project

Current Account 76304976.38 130478649.66

Others 3156761.63 2957909.51

Total 79461738.01 220614259.17

(6) Top five other receivables at the end of the period

Percentage of

Provision for

Nature or total other

Company Amount Aging bad debts at

content receivables

2025/06/30

(%)

Benxi Iron and

Steel (Group)

4-5 years

No. 3 Current

12504978.59 over 5 15.74 12504978.59

Architectural Account

years

Engineering

Co. Ltd.Benxi Iron and

Steel (Group)

No. 1 Current over 5

3247307.074.093247307.07

Architectural Account years

Engineering

Co. Ltd.Benxi Iron &

Current 1-2 years

Steel (Group) 2674500.00 3.37 413000.00

Account 2-3 years

Co. Ltd..Liaoning

Huawei Coal Current over 5

2261360.002.852261360.00

Preparation Co. Account years

Ltd.

3-4 years

Benxi Ganglian Current 4-5 years

1916960.242.411916960.24

Slag Co. Ltd. Account over 5

years

Total 22605105.90 28.46 20343605.90

140Bengang Steel Plates Co. Ltd. Interim Report 2025

(7) Inventories

1. Inventories disclosed by category

2025/06/302024/12/31

Inventory Inventory

impairment/ impairment/

Items

Gross carrying amount Impairment of Book value Gross carrying amount Impairment of Book value

contract fulfillment contract

costs fulfillment costs

Raw material 4273091213.39 210474517.51 4062616695.88 4300063154.21 247221306.73 4052841847.48

Work in progress 1887888280.15 39066684.19 1848821595.96 2001147780.74 26685410.19 1974462370.55

Finished goods 1157759803.34 19260495.81 1138499307.53 1337346627.43 31566151.19 1305780476.24

Total 7318739296.88 268801697.51 7049937599.37 7638557562.38 305472868.11 7333084694.27

2. Impairment of inventory and contract fulfillment cost

Increase Decrease

Category 2024/12/31 Write-back or 2025/06/30

Provision Others Others

write-off

Raw material 247221306.73 -36746789.22 210474517.51

141Bengang Steel Plates Co. Ltd. Interim Report 2025

Increase Decrease

Category 2024/12/31 Write-back or 2025/06/30

Provision Others Others

write-off

Work in progress 26685410.19 12381274.00 39066684.19

Finished goods 31566151.19 -12305655.38 19260495.81

Total 305472868.11 -36671170.60 268801697.51

142Bengang Steel Plates Co. Ltd. Interim Report 2025

(8) Other current assets

Items 2025/06/30 2024/12/31

VAT input tax 278714164.92 401503924.78

Others 81415483.63 35577335.88

Total 360129648.55 437081260.66

143Bengang Steel Plates Co. Ltd. Interim Report 2025

(9) Long-term equity investment

1. Long-term equity investment

Increase/decrease

Income or

Impairment loss on Impairment

Other Declaration

provision Addition Reduction investment Other provision

Investees 2024/12/31 Comprehensive of Cash 2025/06/30

as of of of recognized Equity Provision Others as of

Income Dividends

2024/12/31 Investment Investment under the Changes 2025/06/30

Adjustment or Profit

equity

method

1. Joint

Venture

Subtotal

2. Associated

45413221.7245413221.72

Enterprise

Shenyang

Xiangyu New 45413221.72 45413221.72

Material

144Bengang Steel Plates Co. Ltd. Interim Report 2025

Increase/decrease

Income or

Impairment loss on Impairment

Other Declaration

provision Addition Reduction investment Other provision

Investees 2024/12/31 Comprehensive of Cash 2025/06/30

as of of of recognized Equity Provision Others as of

Income Dividends

2024/12/31 Investment Investment under the Changes 2025/06/30

Adjustment or Profit

equity

method

Technology

Co. Ltd.Subtotal 45413221.72 45413221.72

Total 45413221.72 45413221.72

145Bengang Steel Plates Co. Ltd. Interim Report 2025

(10) Other equity instrument investment

1. The information of other equity instrument investment

Reasons for

Losses

Gains recognized Accumulated gains Accumulated designation as at

recognized in

in other in other losses in other Dividend fair value

Items 2025/06/30 2024/12/31 other

comprehensive comprehensive comprehensive income through other

comprehensive

income income income comprehensive

income

income

Suzhou Longben

Metal Materials 3940544.25 3940544.25 51564.25

Co. Ltd.Northeast

Special Steel 929485710.38 929485710.38 108250138.62

Group Co. Ltd.Sinosteel

Shanghai Steel

14414693.00

Processing Co.Ltd.Total 933426254.63 933426254.63 51564.25 122664831.62

146Bengang Steel Plates Co. Ltd. Interim Report 2025

(11) Fixed assets

1. Fixed assets and Disposal of fixed assets

Items 2025/06/30 2024/12/31

Fixed assets 26050690523.41 26426320453.57

Disposal of fixed assets

Total 26050690523.41 26426320453.57

147Bengang Steel Plates Co. Ltd. Interim Report 2025

2. Details of fixed assets

Transportation Furniture and office

Items Buildings Machinery Total

equipment and others equipment

1．Gross carrying amount

（1）31 December 2024 14262023176.62 52705897283.61 400985732.35 242916091.60 67611822284.18

（2）Increase in current period 10541517.86 469603686.13 1635014.37 363347.27 482143565.63

—Including: Purchase 1958197.73 475557.53 2433755.26

—Transferred from

10541517.86467645488.401159456.84363347.27479709810.37

construction in progress

—Increase in corporate

mergers

— Transferred from sale and

leaseback

—Others

（3）Decrease in current period 37774604.42 203597429.13 11443407.48 252815441.03

—Including: Disposal or

37774604.42203597429.1311443407.48252815441.03

scrapped

— transfer to sale and

leaseback

148Bengang Steel Plates Co. Ltd. Interim Report 2025

Transportation Furniture and office

Items Buildings Machinery Total

equipment and others equipment

—Others

（4）30 June 2025 14234790090.06 52971903540.61 391177339.24 243279438.87 67841150408.78

2．Total accumulated depreciation

（1）31 December 2024 6843827644.40 33772852695.68 320082643.21 137437495.66 41074200478.95

（2）Increase in current period 121452679.21 681517928.15 5527218.35 17337579.61 825835405.32

—Including: Provision 121452679.21 681517928.15 5527218.35 17337579.61 825835405.32

—Increase in corporate

mergers

—Others

（3）Decrease in current period 24679246.15 181068815.01 10928111.56 216676172.72

—Including: Disposal or

24679246.15181068815.0110928111.56216676172.72

scrapped

— transfer to sale and

leaseback

—Others

（4）30 June 2025 6940601077.46 34273301808.82 314681750.00 154775075.27 41683359711.55

3．Total impairment

（1）31 December 2024 83249691.92 28051659.74 111301351.66

149Bengang Steel Plates Co. Ltd. Interim Report 2025

Transportation Furniture and office

Items Buildings Machinery Total

equipment and others equipment

（2）Increase in current period

—Including: Provision

—Other

（3）Decrease in current period 833674.57 3367503.27 4201177.84

—Including: Disposal or

833674.573367503.274201177.84

scrapped

（4）30 June 2025 82416017.35 24684156.47 107100173.82

4．Net book value

（1）30 June 2025 7211772995.25 18673917575.32 76495589.24 88504363.60 26050690523.41

（2）31 December 2024 7334945840.30 18904992928.19 80903089.14 105478595.94 26426320453.57

150Bengang Steel Plates Co. Ltd. Interim Report 2025

3. Temporarily idle Fixed assets

Gross carrying Accumulated

Items Impairment Book value Note

amount depreciation

Buildings 112751517.87 68351097.47 41943853.74 2456566.66

Machinery 3034473.01 2434878.60 75666.43 523927.98

Total 115785990.88 70785976.07 42019520.17 2980494.64

4. Fixed assets leased out by operating lease

Items Amount as at 2025/06/30

Buildings 21322330.90

Machinery 493275.96

5. Fixed assets without property rights certificates at the end of the period

Items Book value Reason

Buildings 2293774311.90 In process

(12) Construction in progress

1. Construction in progress and Construction materials

2025/06/302024/12/31

Total Total

Items Gross carrying Gross carrying

impair Book value impair Book value

amount amount

ment ment

Construction in

4537418033.004537418033.003934442501.503934442501.50

progress

Project materials 102000.00 102000.00

Total 4537520033.00 4537520033.00 3934442501.50 3934442501.50

2. Details of construction in progress

151Bengang Steel Plates Co. Ltd. Interim Report 2025

2025/06/302024/12/31

Items Total Total

Gross carrying amount impairme Book value Gross carrying amount impairmen Book value

nt t

Special Steel Electric Furnace

501616506.41501616506.41483671390.32483671390.32

Capacity Replacement Project

Desulphurization Waste Liquor

Acid Making Project in Plates 82436988.98 82436988.98 79335324.68 79335324.68

Iron Making Plant

CCPP Power Generation

40983279.7740983279.77

Project

Cold Rolling Transformation

527591479.48527591479.48492919655.40492919655.40

Project

Plate No.1 Dry Quenching

System Boosting Modification

41865108.6341865108.6341832708.6341832708.63

and Unit No.34 New

Construction

Environmental Protection

Renovation of Plate Raw 170714302.21 170714302.21 160208719.65 160208719.65

Material Plant

152Bengang Steel Plates Co. Ltd. Interim Report 2025

2025/06/302024/12/31

Items Total Total

Gross carrying amount impairme Book value Gross carrying amount impairmen Book value

nt t

Capacity Replacement Project

of No. 5 Blast Furnace of

Bensteel Ironmaking Plant

(Energy-saving and 59158434.85 59158434.85 55645429.58 55645429.58

Environmental Protection

Renovation of No. 5 Blast

Furnace of Ironmaking Plant)

Environmental Protection

Renovation in No. 2 Coal

129712436.30129712436.30119656230.22119656230.22

Storage Field of Plates Raw

Material Plant

Centralized Control Project

before Ironmaking of Plates 95347372.59 95347372.59 80258847.34 80258847.34

Iron Making Plant

1780 Production Line

78531654.0278531654.0278531654.0278531654.02

Upgrading

153Bengang Steel Plates Co. Ltd. Interim Report 2025

2025/06/302024/12/31

Items Total Total

Gross carrying amount impairme Book value Gross carrying amount impairmen Book value

nt t

Flue Gas Desulfurization and

Denitrification Project of 4B

and 5 Furnace Group in 44996882.65 44996882.65 44724618.50 44724618.50

Bengang Plates and Iron

Making General Plant

Plate Hot Rolling Mill 2300

Line Reheating Furnace 40082001.71 40082001.71 15500355.74 15500355.74

Overhaul

Bengang Plate intelligent

70802016.4070802016.4053198819.5353198819.53

factory Project

Centralized Control Project

before Ironmaking of Plates 118866661.12 118866661.12 107816471.12 107816471.12

Iron Making Plant

Steam Drum to Electric Drum

Conversion Project of the Plate 101052630.63 101052630.63 48987269.15 48987269.15

Energy Management Center

154Bengang Steel Plates Co. Ltd. Interim Report 2025

2025/06/302024/12/31

Items Total Total

Gross carrying amount impairme Book value Gross carrying amount impairmen Book value

nt t

Retrofit of Dust Removal

System in No.7 Blast Furnace

41811530.6541811530.6531296143.6031296143.60

Area at Ironmaking General

Works

Environmental Treatment of

Blast Furnace Ore Bins at Plate 40224780.25 40224780.25 32949949.75 32949949.75

Ironmaking General Works

Retrofit of the Dust Removal

System in the New No.1 Blast

61538258.2461538258.2446333893.6446333893.64

Furnace Area at the Ironmaking

General Works

Renovation of the dust removal

system in the No. 6 blast

85659983.6485659983.6464377725.6464377725.64

furnace area of the Iron and

Steel Plant

Ultra-low emission

68764255.1968764255.1968740566.2968740566.29

transformation of the dust

155Bengang Steel Plates Co. Ltd. Interim Report 2025

2025/06/302024/12/31

Items Total Total

Gross carrying amount impairme Book value Gross carrying amount impairmen Book value

nt t

removal system in the original

No.3 operation areas of the Iron

and Steel Plant

Fully Enclosed Belt Conveyor

Gallery Project at Benxi Steel

41066754.9041066754.9034238770.6034238770.60

Plate Ironmaking General

Works

Environmental Treatment of the

First and Second Mixing

Systems for Sinter Machine at 53010960.00 53010960.00 37822726.20 37822726.20

Plate Ironmaking General

Works

Environmental Protection

Retrofit of the Second Sintering

123593411.85123593411.8546697183.0846697183.08

Stockyard at the Plate

Ironmaking General Works

156Bengang Steel Plates Co. Ltd. Interim Report 2025

2025/06/302024/12/31

Items Total Total

Gross carrying amount impairme Book value Gross carrying amount impairmen Book value

nt t

Renovation of the Hot Blast

Furnace and Heat Exchanger of

18011658.5118011658.51120538633.05120538633.05

the No.7 Blast Furnace in Plate

Ironmaking Plant

Refractory Materials Retrofit

for No.7 Blast Furnace at Plate 42452368.58 42452368.58 30936881.22 30936881.22

Ironmaking General Works

Renovation of cooling

equipment of No.7 blast

22160409.6822160409.6865430926.2065430926.20

furnace in Plate Ironmaking

Plant

Power Grid Upgrade for the

Plate Energy Center 93546578.80 93546578.80

Supercritical Power Project

Hazard Rectification of Taizi

38941440.2338941440.2333150135.4833150135.48

River Railway Bridge at

157Bengang Steel Plates Co. Ltd. Interim Report 2025

2025/06/302024/12/31

Items Total Total

Gross carrying amount impairme Book value Gross carrying amount impairmen Book value

nt t

Railway Transportation

Company

Special Steel Rolling Mill

66788087.9066788087.9059562329.1859562329.18

Renovation Project

Others 1677073078.60 1677073078.60 1359095863.92 1359095863.92

Total 4537418033.00 4537418033.00 3934442501.50 3934442501.50

158Bengang Steel Plates Co. Ltd. Interim Report 2025

3. Changes in important construction projects in the current period

Project

cumulativ

e

Transferre

Other investmen Including ： Interest

d to fixed Accumulated

Increase decreas t Project Interest capitalizatio

asset amount of Sources of

Items Budget 2024/12/31 during current e during 2025/06/30 accounted progres capitalization n rate in

during interest funds

period current for the s (%) amount in current

current capitalization

period proportion current period period (%)

period

of the

budget

(%)

Special Steel

Electric

Furnace 1732481000.0 15603704.0 Fund

483671390.3217945116.09501616506.4193.2093.2067648603.374.08

Capacity 0 8 raising

Replacement

Project

Cold Rolling Loan

Transformatio from

12115610.3

n Project 843640000.00 492919655.40 34671824.08 527591479.48 95.82 95.82 52224686.79 4.08 financia

3

l

institute

Environmental Loan

Protection from

1286370000.0

Renovation of 160208719.65 10505582.56 170714302.21 37.39 37.39 9976126.85 46740897.37 4.08 financia

0

Sheet Raw l

Material Plant institute

159Bengang Steel Plates Co. Ltd. Interim Report 2025

Project

cumulativ

e

Transferre

Other investmen Including ： Interest

d to fixed Accumulated

Increase decreas t Project Interest capitalizatio

asset amount of Sources of

Items Budget 2024/12/31 during current e during 2025/06/30 accounted progres capitalization n rate in

during interest funds

period current for the s (%) amount in current

current capitalization

period proportion current period period (%)

period

of the

budget

(%)

Environmental

Protection and

Intelligent

Upgrading and

Retrofit for Loan

Plate Material from

Yard – 310000000.00 119656230.22 10056206.08 129712436.30 96.76 96.76 5027425.08 14120324.33 4.08 financia

Environmental l

Protection institute

Retrofit

Project for

No.2 Coal

Storage Yard

Plate energy

centralized 119730000.00 80258847.34 15088525.25 95347372.59 79.64 79.64 Others

control project

Centralized

Control

Project before

Ironmaking of 162000000.00 107816471.12 11050190.00 118866661.12 73.37 73.37 Others

Plates Iron

Making

General Plant

160Bengang Steel Plates Co. Ltd. Interim Report 2025

Project

cumulativ

e

Transferre

Other investmen Including ： Interest

d to fixed Accumulated

Increase decreas t Project Interest capitalizatio

asset amount of Sources of

Items Budget 2024/12/31 during current e during 2025/06/30 accounted progres capitalization n rate in

during interest funds

period current for the s (%) amount in current

current capitalization

period proportion current period period (%)

period

of the

budget

(%)

Project of

Converting

Steam Drums

to Electric

Drums at the 187900000.00 48987269.15 52065361.48 101052630.63 55.54 55.54 Others

Plate Energy

Management

and Control

Center

Environmental

Protection

Retrofit of the

Second

Sintering 199880000.00 46697183.08 76896228.77 123593411.85 61.83 61.83 Others

Stockyard at

the Plate

Ironmaking

General Works

Renovation of

the dust

removal

99970000.00 64377725.64 21282258.00 85659983.64 85.69 85.69 Others

system in the

No. 6 blast

furnace area of

161Bengang Steel Plates Co. Ltd. Interim Report 2025

Project

cumulativ

e

Transferre

Other investmen Including ： Interest

d to fixed Accumulated

Increase decreas t Project Interest capitalizatio

asset amount of Sources of

Items Budget 2024/12/31 during current e during 2025/06/30 accounted progres capitalization n rate in

during interest funds

period current for the s (%) amount in current

current capitalization

period proportion current period period (%)

period

of the

budget

(%)

the Iron and

Steel Plant

Power Grid

Upgrade for

the Plate

264470000.00 93546578.80 93546578.80 35.37 35.37 Others

Energy Center

Supercritical

Power Project

Total 1604593491.9 343107871.1 1947701363.0 42722866.3 180734511.8

21346

162Bengang Steel Plates Co. Ltd. Interim Report 2025

(13) Right of use assets

1. Right of use assets

Items Land Buildings Machinery Total

1. Gross carrying

amount

(1) 31 December 2024 1132274415.17 368465367.56 444230189.48 1944969972.21

(2) Increase in current

period

—Addition

—Others

(3) Decrease in current

period

—Disposal or

scrapping

—Others

(4) 30 June 2025 1132274415.17 368465367.56 444230189.48 1944969972.21

2 ． Total accumulated

depreciation

(1) 31 December 2024 159616944.92 81881192.96 17546124.19 259044262.07

(2) Increase in current

19952118.1210235149.149254795.5839442062.84

period

—Provision 19952118.12 10235149.14 9254795.58 39442062.84

(3) Decrease in current

period

—Disposal or

scrapping

—Others

(4) 30 June 2025 179569063.04 92116342.10 26800919.77 298486324.91

3．Total impairment

(1) 31 December 2024

(2) Increase in current

period

—provision

163Bengang Steel Plates Co. Ltd. Interim Report 2025

Items Land Buildings Machinery Total

(3) Decrease in current

period

—Disposal or

scrapping

—Others

(4) 30 June 2025

4．Total net book value

(1) 30 June 2025 952705352.13 276349025.46 417429269.71 1646483647.30

(2) 31 December 2024 972657470.25 286584174.60 426684065.29 1685925710.14

(14) Intangible assets

1. Details of intangible assets

Items Software Land use right Total

1．Total of original value

（1）31 December 2024 4439653.03 489429922.52 493869575.55

（2）Increase

—Purchase

—Internal R&D

—Increase in Mergers

—Others

（3）Decrease

—Disposal

—Others

（4）30 June 2025 4439653.03 489429922.52 493869575.55

2．Total Accumulated Amortization

（1）31 December 2024 686823.46 98402683.41 99089506.87

（2）Increase 591383.33 4981114.05 5572497.38

—Provision 591383.33 4981114.05 5572497.38

（3）Decrease

—Disposal

—Others

164Bengang Steel Plates Co. Ltd. Interim Report 2025

Items Software Land use right Total

（4）30 June 2025 1278206.79 103383797.46 104662004.25

3．Total of Impairment

（1）31 December 2024

（2）Increase

—Provision

（3）Decrease

—Disposal

—Others

（4）30 June 2025

4．Net book value

（1）30 June 2025 3161446.24 386046125.06 389207571.30

（2）31 December 2024 3752829.57 391027239.11 394780068.68

2. Land use right without property rights certificates at the end of the period

Items Book value Reason

Land use right 3120324.41 In process

Total 3120324.41

(15) Deferred tax asset and deferred tax liability

1. Deferred tax assets before taking into consideration of the balance offsetting

2025/06/302024/12/31

Deductible Deductible

Items Deferred tax Deferred tax

temporary temporary

asset asset

differences differences

Deferred tax assets:

Impairment 577451931.50 86958178.87 598249997.63 90011580.45

Changes in fair value

of other financial

assets recognized in 122664831.62 18399724.74 122664831.62 18399724.74

other comprehensive

income

165Bengang Steel Plates Co. Ltd. Interim Report 2025

2025/06/302024/12/31

Deductible Deductible

Items Deferred tax Deferred tax

temporary temporary

asset asset

differences differences

Lease liabilities 1731624850.40 259743727.56 1752154297.33 262823144.60

Total 2431741613.52 365101631.17 2473069126.58 371234449.79

2. Deferred tax liabilities before taking into consideration of the balance offsetting

2025/06/302024/12/31

Taxable Taxable

Items Deferred tax Deferred tax

temporary temporary

liabilities liabilities

differences differences

Deferred tax

liabilities:

Changes in fair value

of other financial

assets recognized in 31158.29 4673.74 31158.29 4673.74

other comprehensive

income

Right-of-use assets 1646483647.30 246972547.10 1685925710.14 252888856.52

Total 1646514805.59 246977220.84 1685956868.43 252893530.26

3. Unrecognized deferred tax assets

Items 2025/06/30 2024/12/31

Deductible temporary differences 276016008.88 286782181.23

Deductible losses 11135387057.05 9484867801.78

Total 11411403065.93 9771649983.01

4. The deductible loss of unrecognized deferred tax assets due in the following period

166Bengang Steel Plates Co. Ltd. Interim Report 2025

Year 30 June 2025 31 December 2024 Notes

Year 2025 9940190.02

Year 2026 6799314.77 6799314.77

Year 2027 8117351.82 8117351.82

Year 2028

Year 2029 221316382.16

Year 2030

Year 2031

Year 2032 1911715647.99 1911715647.99

Year 2033 2367541315.76 2367541315.76

Year 2034 5125613839.53 5180753981.42

Year 2035 1494283205.02

Total 11135387057.05 9484867801.78

(16) Other non-current assets

2025/06/302024/12/31

Gross

Items Gross carrying

carrying Impairment Book value Impairment Book value

amount

amount

Prepayment

for

63242806.7563242806.7586297275.1686297275.16

engineering

equipment

Total 63242806.75 63242806.75 86297275.16 86297275.16

167Bengang Steel Plates Co. Ltd. Interim Report 2025

(17) Assets with restricted ownership or use rights

2025/06/302024/12/31

Items Type of Type of

Carrying amount Book value Status Carrying amount Book value Status

restriction restriction

Margin for

Margin for Notes Margin for Notes Margin for Notes

Notes

Cash at bank and receivable receivable receivable

1001459617.18 1001459617.18 863683251.57 863683251.57 receivable

on hand Margin for letter Margin for letter Margin for letter

Margin for letter

of credit of credit of credit

of credit

Notes receivable 67041187.99 67041187.99 Pledged Pledged 165968800.17 165968800.17 Pledged Pledged

Total 1068500805.17 1068500805.17 1029652051.74 1029652051.74

168Bengang Steel Plates Co. Ltd. Interim Report 2025

(18) Short-term loans

1. Classification of short-term loans

Items 2025/06/30 2024/12/31

Credit loans 570000000.00 370000000.00

Discounted unexpired bills 201932029.09 1055490.50

Total 771932029.09 371055490.50

(19) Notes payable

Items 2025/06/30 2024/12/31

Bank acceptance bill 10612143986.30 10412029417.45

Commercial acceptance bill 1134068131.78 1559477470.97

Letter of credit 1496307842.64 1011196781.44

Total 13242519960.72 12982703669.86

(20) Accounts payable

1. Accounts payable

Items 2025/06/30 2024/12/31

Within 1 year (inclusive) 2799003363.63 2680864210.15

1-2 year (inclusive) 119630433.78 61748259.48

2-3 year (inclusive) 13489180.84 8554593.94

Over 3 years 14145836.39 10592375.79

Total 2946268814.64 2761759439.36

Note: No material accounts payable with ageing of over one year or overdue.

(21) Prepayments

Items 2025/06/30 2024/12/31

Within 1 year (inclusive) 60550.47 611.60

1-2 year (inclusive) 58715.61

2-3 year (inclusive)

Over 3 years

169Bengang Steel Plates Co. Ltd. Interim Report 2025

Items 2025/06/30 2024/12/31

Total 60550.47 59327.21

(22) Contract liabilities

1. Details of contract liabilities

Items 2025/06/30 2024/12/31

Payment received in advance and labor

2712225947.412894761202.08

costs

Others 8201204.84 13837223.65

Total 2720427152.25 2908598425.73

(23) Employee benefits payable

1. Employee benefits payable

Items 2024/12/31 Increase Decrease 2025/06/30

Short-term employee

1773068.35838993043.91831185366.879580745.39

benefits

Post-employment

benefits - defined 117412488.73 117412488.73

contribution plans

Termination benefits 9178565.95 9178565.95

Other benefits due within

one year

Others

Total 1773068.35 965584098.59 957776421.55 9580745.39

2. Short-term employee benefits

Items 2024/12/31 Increase Decrease 2025/06/30

(1) Salary bonus

597838713.64597838713.64

allowance and subsidy

(2) Employee welfare 77970134.07 77970134.07

(3) Social Insurance 61623095.39 61623095.39

170Bengang Steel Plates Co. Ltd. Interim Report 2025

Items 2024/12/31 Increase Decrease 2025/06/30

Including: Medical

insurance and maternity 49343055.39 49343055.39

insurance

Work injury

9991880.009991880.00

insurance

Others 2288160.00 2288160.00

(4) Housing fund 73504046.00 73504046.00

(5) Union funds and staff

1773068.3520331219.5312523542.499580745.39

education fee

(6) Short-term

compensated absences

(7) Short-term profit -

sharing scheme

(8) Other short-term

7725835.287725835.28

benefits

Total 1773068.35 838993043.91 831185366.87 9580745.39

3. Defined contribution plans

Items 2024/12/31 Increase Decrease 2025/06/30

Basic pension fund 94092330.06 94092330.06

Unemployment insurance 2940640.96 2940640.96

Annuity 20379517.71 20379517.71

Total 117412488.73 117412488.73

(24) Current tax liabilities

Items 2025/06/30 2024/12/31

Value-added tax 7111335.94 10272516.44

Resource Tax 2479178.56 750000.00

Corporate income tax 9620928.92 16029179.78

City maintenance and construction tax 497793.52 540889.49

House property tax 7576279.53 7370656.33

171Bengang Steel Plates Co. Ltd. Interim Report 2025

Items 2025/06/30 2024/12/31

Land use right tax 1144608.49 1088809.99

Individual income tax 474740.89 2157426.95

Educational surcharges (including local

355566.80386769.92

Educational surcharges)

Others 12735295.16 15473848.93

Total 41995727.81 54070097.83

(25) Other payables

Items 2025/06/30 2024/12/31

Interest payables

Dividends payables 45054305.70 99687100.35

Other payables 2667560610.09 2255007099.66

Total 2712614915.79 2354694200.01

1. Dividends payables

Items 2025/06/30 2024/12/31

Bengang Group Co. Ltd. 45054305.70 45054305.70

Pohang Iron and Steel Co. Ltd (POSCO) 54632794.65

Total 45054305.70 99687100.35

2. Other payables

(1) Other payables disclosed by nature

Items 2025/06/30 2024/12/31

Deposit 585292.00 586292.00

Margin 174175679.53 377422555.34

Current accounts 2490502376.12 1871598040.35

Others 2297262.44 5400211.97

Total 2667560610.09 2255007099.66

172Bengang Steel Plates Co. Ltd. Interim Report 2025

(2) Significant other payables aged over one year or overdue

Items 2025/06/30 Reasons

The project is still in

MCC Jingcheng Engineering Technology Co. Ltd 9677280.00

progress

(26) Non-current liabilities due within one year

Items 2025/06/30 2024/12/31

Long-term loans due within one year 501112572.40 805270731.20

Including: pledge loan

Mortgage loan

Guaranteed loan

Credit loan 501112572.40 805270731.20

Bond payables due within one year 5618737269.28 106989474.64

Other long-term payables due within one

115797444.57118242710.82

year

Total 6235647286.25 1030502916.66

(27) Other current liabilities

Items 2025/06/30 2024/12/31

Output tax to be transferred 302028180.11 328981058.74

Total 302028180.11 328981058.74

(28) Long-term loans

Items 2025/06/30 2024/12/31

Pledged loans

Mortgage loan

Guaranteed loans

Credit loans 4045871647.71 3697212193.60

Subtotal 4045871647.71 3697212193.60

Less: due within one year 501112572.40 805270731.20

173Bengang Steel Plates Co. Ltd. Interim Report 2025

Items 2025/06/30 2024/12/31

Total 3544759075.31 2891941462.40

Notes: At the end of the period interest rate of long-term loans ranges from 2.1%-3.28%.

(29) Bonds payable

1. Bonds payable disclosed by category

Items 2025/06/30 2024/12/31

Convertible Bond 5569899459.53

Total 5569899459.53

174Bengang Steel Plates Co. Ltd. Interim Report 2025

2. Changes in Bonds payables (Excluding other financial instruments such as preferred stocks and perpetual bonds classified as financial liabilities)

Share

Curr

Premium and conversion Balance at the end

Bond Balance at the end of ent Interest accrued at Repayment in Default

Items Face value Issue date Issuance amount discount and of the current

duration the previous year issu face value this period or not

amortization repurchase period

e

this year

Bengang

Convertib

le Bond 29th June

6800000000.00 6 Years 6800000000.00 5676888934.17 106998050.00 48853809.75 213987524.64 16000.00 5618737269.28 No

(Bond 2020

code:1270

18)

Less:

amount

106989474.64 106989474.64 5618737269.28 No

due within

one year

Total 5569899459.53 106998050.00 48853809.75 106998050.00 16000.00

175Bengang Steel Plates Co. Ltd. Interim Report 2025

3. Description of corporate convertible bond:

Approved by Shenzhen Stock Exchange "Shen Zheng Shang [2020] No. 656" the Company’s RMB 6.80 billion convertible corporate bonds were listed on the

Shenzhen Stock Exchange on August 4 2020 and the abbreviation is "Bengang Convertible Bonds". The bond code is "127018". The conversion period of the

convertible corporate bonds issued this time is from the first trading day after six months of the issuance of the convertible corporate bonds (July 3 2020) to

the maturity date of the convertible corporate bonds that is from January 4 2021 to June 28 2026. The initial conversion price of the convertible bonds is

RMB 5.03 per share. From January 1 2025 to June 30 2025 an aggregate of RMB16000.00 of the convertible bonds were converted into 4048.00 common

stock. Among them:

In the first quarter of 2025 the Bengang Convertible Bonds were reduced by RMB 15000.00 (150 bonds) resulting in a conversion quantity of 3795.00 shares

at a conversion price of RMB3.95 yuan per share; in the second quarter of 2025 the Bengang Convertible Bonds reduced by RMB 1000.00 yuan (10 bonds)

resulting in a conversion quantity of 253.00 shares at a conversion price of RMB3.95 yuan per share.

176Bengang Steel Plates Co. Ltd. Interim Report 2025

(30) Lease liabilities

Items 2025/06/30 2024/12/31

Lease payments 2488754144.09 2539395930.63

Less: Unrealized financing expenses 757129293.69 787241633.30

Reclassified to non-current liabilities

115797444.57118242710.82

within one year

Total 1615827405.83 1633911586.51

(31) Deferred income

Items 2024/12/31 Increase Decrease 2025/06/30 Reason

Government

173919087.4746963000.0031376315.25189505772.22

subsidy

Total 173919087.47 46963000.00 31376315.25 189505772.22

177Bengang Steel Plates Co. Ltd. Interim Report 2025

The details of government subsidy projects are as follows:

Transfer to Related to

non-operating Transfer to Offsetting Other assets or

Items 2024/12/31 Increase 2025/06/30

income other income cost or changes income

Desulfurization and Denitrification

1200000.00 300000.00 900000.00 Assets

Project of Coal-fired Boiler in High-

Advance d Treatmen t P roject of Carbon

Fiber Wastewater in Dongfeng Plant Area 1900000.00 950000.00 950000.00 Assets

Second Sintering Finishing Dust

410000.00 205000.00 205000.00 Assets

Removal Ultra-low Emission

Converter Gas R ecover y Efficiency

7260000.00 1210000.00 6050000.00 Assets

Improvement Project for Plate Material

Centr al environmental protection award

63264000.00 10544000.00 52720000.00 Assets

fund

2021 Intellectual Manufacturing Strong 2880000.00 480000.00 2400000.00 Assets

2020 Ecological Civilization

16000000.00 2000000.00 14000000.00 Assets

Construction Special Project (Special

2021 Manufa cturing S trong Provi nce

6480000.00 810000.00 5670000.00 Assets

Special Fund Project

Bengang Automotive Sheet Engineering 745133.80 228047.25 517086.55 Assets

178Bengang Steel Plates Co. Ltd. Interim Report 2025

Transfer to Related to

non-operating Transfer to Offsetting Other Items 2024/12/31 Increase 2025/06/30 assets or

income other income cost or changes income

Xingliao Talent Program Government 190000.00 190000.00 Income

2021 Benxi City Expert-Enterprise 5000.00 5000.00 Income

2022 Liaoning Provincial Natural

28400.00 28400.00 Income

Science Foundation Program Funds

Design of R are Earth St eel Metallu rgic al

302173.50 302173.50 Income

Sl S t d R h It

2021 Municipal S killed Mas ter

20764.57 20764.57 Income

Workstation Fee

Study on the Mechanism and Control of

52020.20 52020.20 Income

the Effect of Rare Earth Oxysulfides on

2019 Municipal Master Skill Workstation

69500.19 69500.19 Income

Fee

2018 Municipal Master Skill Workstation

58766.34 58766.34 Income

Fee

Liaoning Province "Hundred Thousand

220000.00 220000.00 Income

Thousand Thousand Talents Project"

179Bengang Steel Plates Co. Ltd. Interim Report 2025

Transfer to Related to

Items 2024/12/31 Increase non-operating

Transfer to Offsetting Other

2025/06/30 assets or

income other income cost or changes income

Provincial Science and Technology

334000.00 334000.00 Income

Department National Natural Science

2019 Provincial Skilled Master

100000.00 100000.00 Income

Workstation Fee

2020 Provincial-level Skill Master

36200.84 36200.84 Income

Workstation Expenditure

Fundamental Research on New

168000.00 168000.00 Income

Technology of Composite Iron Coke Low

The Second Batch of 2021 Liaoning

300000.00 300000.00 Income

Funds on Central Government Guiding

2022 Digital Liaoning Intellectual

300000.00 300000.00 Income

Manufacturing Strong Province

Municipal Enterprise Operation Class

200000.00 200000.00 Income

Patent Navigation Project Funding Grant

180Bengang Steel Plates Co. Ltd. Interim Report 2025

Transfer to Related to

non-operating Transfer to Offsetting Other Items 2024/12/31 Increase 2025/06/30 assets or

income other income cost or changes income

Genetic Engineering and Artificial

376000.00 376000.00 Income

Intelligence Design of Aviation Critical

2022 Annual Provincial Skill Master

32256.03 20225.43 12030.60 Income

Workshop Program

Government Grants Received by Steel

525000.00 525000.00 Income

Products R&D Institute

Steel Plant Blast Furnace #5 Group & 4B

16368000.00 2046000.00 14322000.00 Assets

Coke Oven Flue Gas

Converter Roof Hood Tertiary Dust

11688000.00 1461000.00 10227000.00 Assets

Removal Upgrade (BF #4/5/6

Hot Metal Pretreatment Station Dust

7730400.00 966300.00 6764100.00 Assets

Control Retrofit (Converter Plant)

Hot Blast Stove Desulfurization-

Assets

Denitrification System Installation 15267000.00 15267000.00

181Bengang Steel Plates Co. Ltd. Interim Report 2025

Transfer to Related to

Items 2024/12/31 Increase non-operating

Transfer to Offsetting Other

2025/06/30 assets or

income other income cost or changes income

2024 Manufacturing Talent Development

250000.00 250000.00 Income

Support Initiative

R&D on RE-Alloyed High-Strength

111000.00 111000.00 Income

Fatigue Resistant Wheel Steel

Ultra-low Emission Projects for Mill Raw 18680000.00 18680000.00 Assets

Desulfurization & Denitrification Project

27653000.00 27653000.00 Assets

for Blast Furnace Hot Stoves

Land subsid y for Hengda Logistics Park 19047472.00 9504978.00 9542494.00 Assets

Government Financial Support Funds 630000.00 630000.00 Income

Total 173919087.47 46963000.00 31376315.25 189505772.22

182Bengang Steel Plates Co. Ltd. Interim Report 2025

(32) Share capital

Increase/decrease (+ - )

Items 2024/12/31 Issuing of new Bonus

Transferred

from Others Subtotal 2025/06/30

share shares reserves

Total

shares 4108228157.00 4048.00 4048.00 4108232205.00

Note: The increase was due to the convertible bonds issued by the Company were converted into

4048.00 shares of common stock during the current period and the remaining balance of the

face value of the Company's convertible bonds as of June 30 2025 was RMB5630969100.00

Yuan (56309691.00 bonds). For details please refer to Note 5. (29) Bonds payable.

183Bengang Steel Plates Co. Ltd. Interim 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 2025/06/30

Items

Number Book value Number Book value Number Book value Number Book value

Convertible corporate

56309851.00947850195.03160.003257.1056309691.00947846937.93

bonds

Total 56309851.00 947850195.03 160.00 3257.10 56309691.00 947846937.93

Notes: The decrease during the current period was due to convertible bonds issued by the Company have been partially converted into common stock for an aggregate

of RMB16000.00 (160 bonds) and the remaining balance of the face value of the convertible bonds as of June 30 2025 was RMB5630969100.00 Yuan

(56309691.00 bonds). For details please refer to Note 5. (29) Bonds payable.

184Bengang Steel Plates Co. Ltd. Interim Report 2025

(34) Capital reserves

Items 2024/12/31 Increase Decrease 2025/06/30

a) Capital (share)

13225632166.9511835.2613225644002.21

premium

b) Other capital

reserves

Including: Other

equity changes in

investees

Unexercised share-

based payment

Others

c) Transfer of capital

reserve under the

original system

Total 13225632166.95 11835.26 13225644002.21

Notes:

1. The increase was due to the conversion of A-share convertible bonds issued by the

Company into A-share common stock during the current period as described in Note 5

(29) Bonds payable.

185Bengang Steel Plates Co. Ltd. Interim Report 2025

(35) Other comprehensive income

Current period

Less: amount

Income after

recognized in Income after

Amounts tax

OCI in the tax Less: transfer

Items 2024/12/31 before attributable to 2025/06/30

previous period Less: income tax attributable to to retain

corporate non-

transfer to PL owners of the earnings

income tax controlling

in current Company

interests

period

1．Items cannot be reclassified

-93407196.62-93407196.62

into profit or loss.including: Changes in fair value

of investments in other equity

instruments

Other comprehensive

income under the equity method

cannot be reclassified into profit

or loss

186Bengang Steel Plates Co. Ltd. Interim Report 2025

Current period

Less: amount

Income after

recognized in Income after

Amounts tax

OCI in the tax Less: transfer

Items 2024/12/31 before attributable to 2025/06/30

previous period Less: income tax attributable to to retain

corporate non-

transfer to PL owners of the earnings

income tax controlling

in current Company

interests

period

Changes in fair value of

investments in other equity -93407196.62 -93407196.62

instruments

Changes in fair value of

company's credit risk

Other

2．Items can be reclassified into

profit or loss

Total -93407196.62 -93407196.62

187Bengang Steel Plates Co. Ltd. Interim Report 2025

(36) Special Reserves

Items 2024/12/31 Increase Decrease 2025/06/30

Safety production

809649.6532080601.7016712548.9116177702.44

fee

Total 809649.65 32080601.70 16712548.91 16177702.44

(37) Surplus Reserves

Items 2024/12/31 Increase Decrease 2025/06/30

Statutory surplus

1195116522.371195116522.37

reserves

Total 1195116522.37 1195116522.37

(38) Undistributed Profits

Items Current period Previous period

Before adjustments: undistributed profits at last

-7497011632.90-2414685928.92

year-end

Adjustments of the beginning distributed profits

(increase + / decease -)

After adjustments: undistributed profit at this

-7497011632.90-2414685928.92

year-beginning

Add: undistributed profit belonging to parent

-1399277780.90-5037271398.28

company

Less: Statutory surplus reserves

Discretionary reserves

General risk reserves

Common shares dividend payable 45054305.70

Common shares dividend transferred to paid-in

capital

Ending balance of undistributed profits -8896289413.80 -7497011632.90

(39) Operating income and operating cost

188Bengang Steel Plates Co. Ltd. Interim Report 2025

1. Operating income and operating cost

Current period Previous period

Items

Revenue Cost Revenue Cost

Principal

24299027360.1725043467684.0227944182578.6128733996982.52

business

Other

398773061.82397749564.90422669309.38434178194.37

business

Total 24697800421.99 25441217248.92 28366851887.99 29168175176.89

2. Details about operating income and operating cost

Current period Current period

Item Principal business Principal business Other business Other business

Revenue Cost Revenue Cost

Classification by the time

of commodity transfer

Including: recognize at a

24299027360.1725043467684.02397670178.84397742017.02

point in time

-Recognize

over a certain period of 1102882.98 7547.88

time

Total 24299027360.17 25043467684.02 398773061.82 397749564.90

Classification by

business area

Including：Domestic 20038403948.40 20723589764.37 398773061.82 397749564.90

Abroad 4260623411.77 4319877919.65

Total 24299027360.17 25043467684.02 398773061.82 397749564.90

(40) Tax and surcharges

Items Current period Previous period

Environmental tax 7348645.97 10657195.93

City maintenance and construction tax 3841954.40 7179465.72

Educational surcharge 2814781.46 5141768.24

189Bengang Steel Plates Co. Ltd. Interim Report 2025

Items Current period Previous period

Resource Tax 5057602.56

Housing property tax 45022445.17 42749298.60

Land use right tax 7107861.82 7609446.76

Vehicle and vessel tax 10711.44 26361.04

Stamp duty 36809947.61 33103641.89

Others 8373.04 14110.89

Total 108022323.47 106481289.07

Note: The "Implementation Measures for the Pilot Water Resources Tax Reform" (Cai Shui [2024] No.

28) specifies that the pilot program of replacing water resource fees with taxes will be fully implemented

starting 1 December 2024 with tax returns and payments required on a quarterly basis. According to the

requirements in the appendix to the "Implementation Plan for the Pilot Reform of Water Resources Tax

in Liaoning Province" (Liao Cai Shui [2024] No. 320) the Company will apply RMB 0.4 per cubic

meter and RMB 1.2 per cubic meter respectively resulting in an increase of RMB 5057602.56 in the

current period.

(41) Selling and distribution expenses

Items Current period Previous period

Import and export agency fee 1132435.68 1016910.24

Salary and benefits 28922500.81 36058846.27

Storage and warehousing fee 21286926.75 26379873.76

Others 10122303.29 8521429.64

Total 61464166.53 71977059.91

(42) General and administrative expenses

Items Current period Previous period

Salary and benefits 193863629.66 228973811.09

Insurance fee 11836395.97 12068301.43

Depreciation 31277381.76 25703238.52

Repair expense 629075.86 3893853.72

Agency Fees 4108796.48 10565726.99

Information System Service Fees 12135901.47 21186116.66

190Bengang Steel Plates Co. Ltd. Interim Report 2025

Items Current period Previous period

Safety Production Fees 13329362.22 13231852.96

Others 18584353.01 44281797.59

Total 285764896.43 359904698.96

(43) Research and development expenses

Items Current period Previous period

Depreciation materials and

31617334.2736966260.63

compensation etc.Total 31617334.27 36966260.63

(44) Financial expenses

Items Current period Previous period

Interest expenses 207308249.73 192939391.68

including: Interest expenses for lease

30112339.6127576079.44

liabilities

Less: Interest income 17521734.29 20070259.17

Exchange gains or losses 12771216.88 -43562831.57

Others 5783222.76 5419742.93

Total 208340955.08 134726043.87

(45) Other income

Items Current period Previous period

Withholding fee income 221525.38 401726.29

VAT tax relief 30018663.56 24007324.56

Tax refund 47395742.50 43795569.52

Desulfurization and Denitrification Project of Coal-fired

Boiler in High-pressure Workshop of Bengang Power 300000.00 300000.00

Plant

191Bengang Steel Plates Co. Ltd. Interim Report 2025

Items Current period Previous period

Advanced Treatment Project of Carbon Fiber

Wastewater in Dongfeng Plant Area of Plate Coking 950000.00 950000.00

Plant

Second Sintering Finishing Dust Removal Ultra-low

205000.00205000.00

Emission Reconstruction Project

Plate factory area converter Gas Recovery and

1210000.001210000.00

Efficiency Improvement Project

Central Government Environmental Protection Award

10544000.0010544000.00

Fund

2021 Intellectual Manufacturing Strong Province

870000.00480000.00

Special Fund

2020 Ecological Civilization Construction Special

2000000.00

Project (Special Steel EAF Upgrading Project)

2021 Intellectual Manufacturing Strong Province

420000.00390000.00

Special Fund

Benxi Steel Automotive Sheet Engineering Laboratory

228047.25

Construction Project

2021 Municipal-Level Skills Master Workstation Fee 40990.00

Flue Gas Desulfurization and Denitrification Project for

No.5 Furnace Group & 4B Coke Oven at Plate 2046000.00

Ironmaking Plant

Triple Dust Removal Retrofit for Roof Hoods of

1461000.00

No.4/5/6 Converters at Plate Steelmaking Plant

Dust Removal Retrofit for Hot Metal Pretreatment

966300.00

Station of Steelmaking Converters

Development of Gen-3 AHSS for Vehicles 290000.00

Government Tax Rebates for Low-Growth Enterprises 724200.00

Special Incentive Funds for Business Stable

785500.00

development Measures

Hengda Logistics Park Land Subsidy 9504978.00 6636652.00

Fiscal Support Funds 630000.00

Total 109012246.69 90719972.37

192Bengang Steel Plates Co. Ltd. Interim Report 2025

(46) Investment income

Items Current period Previous period

Income on long-term equity investment by equity method

Income on long-term equity investment by cost method

Income on disposal of long-term equity investment

Gain from debt restructuring 7215.64

Others -17639062.95 -31605308.28

Total -17631847.31 -31605308.28

(47) Credit impairment loss

Items Current period Previous period

Loss from bad debts of account receivable 17800262.33 -18084169.13

Loss from bad debts of other receivables -8492152.37 1919709.67

Total 9308109.96 -16164459.46

(48) Asset impairment loss

Items Current period Previous period

Inventory and contract fulfillment cost

-36671170.6014313228.28

impairment loss

Total -36671170.60 14313228.28

(49) Assets disposal gains

The amount recognized in non-

Items Current period Previous period

recurring profit

Fixed assets 3008.85 10002955.91 3008.85

Total 3008.85 10002955.91 3008.85

(50) Non-operating income

193Bengang Steel Plates Co. Ltd. Interim Report 2025

The amount

Items Current period Previous period recognized in non-

recurring profit

Non-current assets scrapped gains 524024.60 2969609.64 524024.60

Donation

Government grants unrelated to

operational activities

Compensation for breach of

6638865.702257723.466638865.70

contract

Unable to pay (debt settlement

100.02100.02

income)

Inventory Surplus Gains

Others 2560778.89 3754417.72 2560778.89

Total 9723769.21 8981750.82 9723769.21

(51) Non-operating expense

The amount

Items Current period Previous period recognized in non-

recurring profit

Non-current assets scrapped

32063940.4726684793.0332063940.47

loss

Donation

Administrative Fines and Late

43.9481657.8543.94

Fees

Compensation liquidated

248751.31819442.12248751.31

damages and fines

Others 4210630.39 71951.36 4210630.39

Total 36523366.11 27657844.36 36523366.11

(52) Income tax expenses

1. Income tax expense

194Bengang Steel Plates Co. Ltd. Interim Report 2025

Items Current period Previous period

Income tax payable for the current year 19759519.10 40364805.44

Deferred income tax 216509.20 -2905865.78

Total 19976028.30 37458939.66

2. Accounting profit and income tax expense adjustment process

Items Current period

Total profit -1346679630.74

Income tax expense calculated according to the official or applicable tax

-182670239.06

rate

Effect of different tax rates applied by subsidiaries 5859548.03

Effect of adjustment of the income tax expense of prior period -13058799.81

Effect of non-taxable income 93845.69

Effect of undeductible costs expenses or losses -20423025.40

Effect of use of deductible losses of unrecognized deferred tax asset of

-1990339.80

prior period

Effect of deductible temporary differences or deductible losses of

238016466.19

unrecognized deferred tax assets of current period

Effect of tax rate changes on the opening balance of deferred tax

assets/liabilities

Others -5851427.54

Income tax expenses 19976028.30

(53) Notes of statement of cash flows

1. Cash related to operating activities

（1）Cash received related to other operating activities

Items Current period Previous period

Collection of current accounts and advance

52500806.6842591304.64

payment on behalf

Interest income 18463234.45 19586079.70

Special subsidy income 47191156.54 10775771.68

195Bengang Steel Plates Co. Ltd. Interim Report 2025

Items Current period Previous period

Non-operating income 2920912.19 3960212.67

Others 1097069.28 2522136.10

Total 122173179.14 79435504.79

（2）Cash paid related to other operating activities

Items Current period Previous period

Current accounts 80902412.69 67015177.96

Administrative expenses 40868520.89 46903144.20

Selling expenses 2753734.36 8837487.92

Charges 18292702.08 32800975.46

Others 15925186.78 17743797.28

Total 158742556.80 173300582.82

2. Cash related to financing activities

（1）Other cash received in relation to financing activities

Item Current period Previous period

Notes letter of guarantee and letter of credit

margins 1815330484.81 1841743458.53

Withdrawal of term deposit

Recovery of short-term borrowing funds for

designated payments

Total 1815330484.81 1841743458.53

（2）Other cash paid in relation to financing activities

Item Current period Previous period

Notes letter of guarantee and letter of credit

margins 1953106850.42 1641919092.82

Lease payments 3767304.90 31137341.92

Short-term borrowing funds for designated

4977735.814378074.03

payments

Total 1961851891.13 1677434508.77

196Bengang Steel Plates Co. Ltd. Interim Report 2025

(54) Supplementary details of statement of cash flows

1. Supplementary details for statement of cash flows

Items Current period Previous period

1. A reconciliation of net profit to cash flows from

operating activities:

Net profit -1366655659.04 -1496544823.36

Add: Credit impairment loss 9308109.96 -16164459.46

Asset impairment loss -36671170.60 14313228.28

Depreciation of fixed assets 825835405.32 832107573.45

Depletion of oil and gas assets

Depreciation of right of use assets 39442062.84 33231654.57

Amortization of intangible assets 5572497.38 4543448.63

Long-term deferred expenses

Losses proceeds from disposal of PPE intangible

assets and other long-term assets (Earnings -3008.85 -10002955.91

marked“－”)

Scrapped losses from fixed assets (Earnings

31539915.8723715183.39

marked“－”)

Losses in fair value change (Earnings marked“－”)

Financial expenses (Earnings marked“－”) 220079466.61 149376560.11

Investment losses (Earnings marked“－”) 17631847.31 31605308.28

Deferred tax assets reduction (Addition marked“－”) 6132818.62 -64667690.46

Deferred tax liabilities increased (Reduction

-5916309.4261761824.68

marked“－”)

Reduction of inventory (Addition marked“－”) 319818265.50 -182101204.14

Operating receivable items reduction (Addition

-551119293.48506901128.60

marked“－”)

Operating payable items increase (Less marked"－") 841266763.23 1189615665.97

Others 15368052.79 3125247.77

Net cash flows generated from operating activities 371629764.04 1080815690.40

2. Payments of investing and financing activities not

involving cash:

Liabilities transferred to capital

197Bengang Steel Plates Co. Ltd. Interim Report 2025

Items Current period Previous period

Convertible bonds due within one year

Fixed assets financed by leasing

3. The net increase in cash and cash equivalents:

Ending balance of cash 1118512027.55 1182645195.35

Less: Beginning balance of cash 1590205218.91 1199685408.38

Add: Ending balance of cash equivalents

Less: Opening balance of cash equivalents

The net increase in cash and cash equivalents -471693191.36 -17040213.03

2. The structure of cash and cash equivalents

Items Current period Previous period

1. Cash 1118512027.55 1590205218.91

Including: Cash on hand

Digital cash available on demand

Bank deposits available on demand 1118512027.55 1590205218.91

2. Ending balance of cash and cash equivalents 1118512027.55 1590205218.91

Including: Cash and cash equivalents limited to use

by the parent company of other subsidiary

in the group

(55) Foreign currency monetary items

1. Foreign currency monetary items

Ending balance in Ending balance translated

Item Exchange rate

foreign currency to RMB

Cash and cash equivalents 875365279.59

Including: USD 122281630.43 7.1586 875365279.59

EUR

HKD

Non-current liabilities due

1149529.60

within one year

Including: USD

198Bengang Steel Plates Co. Ltd. Interim Report 2025

Ending balance in Ending balance translated

Item Exchange rate

foreign currency to RMB

JPY 23176000.00 0.0496 1149529.60

Long-term loans 1724294.40

Including: USD

JPY 34764000.00 0.0496 1724294.40

6. Changes in the Scope of Consolidation

(1) Changes in the Scope of Consolidation Due to Other Reasons

On April 9 2025 the Company newly established Green Gold (Benxi) Renewable Resources Co.Ltd. and the Company holds 51.00% of the shares of the newly established company.

7. Equity in other entities

(1) Equity in subsidiaries

1. Constitution of enterprise group

Name of Registered Shareholding

the capital (in

Principal

place of Registration Nature of ratio (%) Acquisition

subsidiary 10 thousand) business

place business

Direct Indirect method

Guangzhou

Bengang

Steel &

Iron 20000 Guangzhou Guangzhou Sales 100 Establishment

Trading

Co. Ltd

Shanghai

Bengang

Metallurgy

Science and 23000 Shanghai Shanghai Sales 100 Establishment

Technology

Co. Ltd

Dalian

Benruitong

Automobile

Material 10000 Dalian Dalian Manufacturing 65 Establishment

Technology

Co. Ltd

Bengang Business

POSCO combination

Cold-rolled 192000 Benxi Benxi Manufacturing 75 under

Sheet Co. common

Ltd. control

Changchun

Bengang Business

Steel & combination

Iron 3000 Changchun Changchun Sales 100 under

Trading common

Co. Ltd. control

Yantai

Bengang 20000 Yantai Yantai Sales 100

Business

combination

199Bengang Steel Plates Co. Ltd. Interim Report 2025

Name of Registered Shareholding

the capital (in

Principal

place of Registration Nature of ratio (%) Acquisition

subsidiary 10 business place business thousand) Direct Indirect

method

Steel Sales under

Co. Ltd. common

control

Tianjin Business

Bengang combination

Steel 20000 Tianjin Tianjin Sales 100 under

Trading common

Co. Ltd. control

Benxi

Bengang

Steel & 3000 Benxi Benxi Sales 100 Establishment

Iron Sales

Co. Ltd.Shenyang

Bengang

Metallurgy

Science and 20000 Shenyang Shenyang Sales 100 Establishment

Technology

Co. Ltd.Northern Business

Hengda combination

Logistics 15000 Benxi Benxi Manufacturing 100 under

Co. Ltd. common control

Lujin

(Benxi)

Renewable 6000 Benxi Benxi Manufacturing 51 Establishment Resources

Co. Ltd.

2. Significant but not wholly-owned subsidiaries

Proportion Profits and losses Dividend declared to Ending

Name of the subsidiaries of non- attributing to balance of non-controlling non-controlling distribute to controlling

interests shareholders non-controlling shareholders interests

Bengang Posco Cold-rolled

Sheet Co. Ltd. 25.00% 29428186.14 626799233.47

200Bengang Steel Plates Co. Ltd. Interim Report 2025

3. Financial information of significant but not wholly-owned subsidiaries

Name of 30 June 2025 31 December 2024

the Current Non- Non- Non- Non-

subsidiaries assets current Total assets

Current Total Current Current Total

assets liabilities

current liabilities assets current Total assets liabilities assets liabilities

current

liabilities liabilities

Bengang

Posco Cold- 5527703148.51 994714125.07 6522417273.58 4015220339.71 4015220339.71 6390756526.72 986052997.62 7376809524.34 4990053412.86 4990053412.86

rolled Sheet

Co. Ltd.Current period Previous period

Name of the

Operating Total Net cash flows Operating Total Net cash flows subsidiaries

income Net profit comprehensive from operating Net profit comprehensive from operating income activities income income activities

Bengang Posco Cold-

rolled Sheet Co. Ltd. 3498792976.94 117712744.55 117712744.55 -206369040.92 4625594944.57 175927445.95 175927445.95 321389844.86

201Bengang Steel Plates Co. Ltd. Interim Report 2025

(2) Interests in Joint Arrangements or Associates

1. Significant Joint Ventures or Associates

The company has no significant joint ventures or associates.

8. Government grants

(1) Types Amounts and Presentation of Government Grants

1. Government Grants Recognized in Profit or Loss for the Current Period

Accounting subjects Current period Previous period

Other income 78772057.75 66310921.52

202Bengang Steel Plates Co. Ltd. Interim Report 2025

2. Liabilities relating to government grants

Amounts Amounts Amounts Offset recognized in recognized in derecognized costs or

Item 31 December 2024 Addition

non-operating in other expenses Related to

income during other income expense during the 30 June 2025 assets/income

the current during the

period current period

during the current

current period period

Deferred

income 173919087.47 46963000.00 31376315.25 189505772.22 Assets/income

203Bengang Steel Plates Co. Ltd. Interim Report 2025

9. Risks associated with financial instruments

(1) Various types of risks arising from financial instruments

The Company's principal financial instruments include other equity instruments investments

borrowings receivables payables etc. A detailed description of each financial instrument is set

out in note VI. The risks associated with these financial instruments and the risk management

policies adopted by the Company to mitigate these risks are described below. The Company's

management manages and monitors these exposures to ensure that these risks are contained

within defined limits.The objective of the Company's risk management is to strike an appropriate balance between

risk and return minimize the negative impact of risk on the Company's operating results and

maximize the benefits of shareholders and other equity investors. Based on this risk management

objective the Company's basic risk management strategy is to determine and analyze the various

risks faced by the company establish an appropriate risk tolerance bottom line and risk

management and timely and reliable supervision of various risks to control the risks within the

limited scope.

1. Credit risk

As of June 30 2025 the company’s maximum exposure to credit risk which could result in

financial loss mainly arises from the failure of counterparties to fulfill their obligations under

contracts leading to losses on the company’s financial assets. This specifically includes the

carrying amounts of financial assets recognized in the consolidated balance sheet. For financial

instruments measured at fair value the carrying amount reflects their risk exposure but does

not represent the maximum exposure as the maximum exposure will change with future fair

value fluctuations.To mitigate credit risk the company has established a dedicated department to determine credit

limits conduct credit approvals and implement other monitoring procedures to ensure that

necessary measures are taken to recover overdue receivables. In addition the company

reviews the collectability of each individual receivable at each balance sheet date to ensure

that adequate provisions for doubtful debts are made for amounts that are unrecoverable.Therefore the management believes that the credit risk faced by the company has been

substantially reduced.The company’s cash and cash equivalents are deposited with financial institutions with high

credit ratings and therefore the credit risk of the company’s cash is low.

204Bengang Steel Plates Co. Ltd. Interim Report 2025

2. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations on

the maturity date. The Company manages liquidity risk by ensuring that it has sufficient

liquidity to meet its obligations as they mature without causing unacceptable losses or

damaging the reputation of the business. The Company regularly analyzes the structure and

maturity of its liabilities to ensure that it has sufficient funds. The Company's management

monitors the use of bank borrowings and ensures compliance with loan agreements. It also

negotiates financing with financial institutions to maintain a certain credit line and reduce

liquidity risk.

205Bengang Steel Plates Co. Ltd. Interim Report 2025

The company’s financial liabilities are presented by maturity based on the undiscounted contractual cash flows as follows:

30 June 2025

Item Payable on Within 1 Year 1–2 Years 2–5 Years Over 5 Years Total Undiscounted

demand Contractual Amount

Carrying Amount

Short-term

borrowings 771932029.09 771932029.09 771932029.09

Notes payable 13242519960.72 13242519960.72 13242519960.72

Accounts

payable 2799003363.63 119630433.78 27635017.23 2946268814.64 2946268814.64

Other payables 2025216081.67 336149690.60 351249143.52 2712614915.79 2712614915.79

Long-term

borrowings

(including those 501112572.40 920699529.60 2624059545.71 4045871647.71 4045871647.71

due within one

year)

Lease liabilities

(including those

due within one 115797444.57 123826116.47 758085723.57 733915565.79 1731624850.40 1731624850.40

year)

Bonds payable

(including those

due within one 5618737269.28 5618737269.28 5618737269.28

year)

Total 25074318721.36 1500305770.45 3761029430.03 733915565.79 31069569487.63 31069569487.63

31 December 2024

Item Payable on

demand Within 1 Year 1–2 Years 2–5 Years Over 5 Years

Total Undiscounted

Contractual Amount Carrying Amount

Short-term

borrowings 371055490.50 371055490.50 371055490.50

Notes

payable 12982703669.86 12982703669.86 12982703669.86

Accounts

payable 2680864210.15 61748259.48 19146969.73 2761759439.36 2761759439.36

206Bengang Steel Plates Co. Ltd. Interim Report 2025

31 December 2024

Item Payable on Total Undiscounted

demand Within 1 Year 1–2 Years 2–5 Years Over 5 Years Contractual Amount Carrying Amount

Other

payables 1703827958.01 394969845.27 255896396.73 2354694200.01 2354694200.01

Long-term

borrowings

(including

those due 805270731.20 922270731.20 1969670731.20 3697212193.60 3697212193.60

within one

year)

Lease

liabilities

(including

those due 118242710.82 109583860.29 782383488.53 741944237.69 1752154297.33 1752154297.33

within one

year)

Bonds

payable

(including

those due 106989474.64 5569899459.53 5676888934.17 5676888934.17

within one

year)

Total 18768954245.18 7058472155.77 3027097586.19 741944237.69 29596468224.83 29596468224.83

207Bengang Steel Plates Co. Ltd. Interim 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 will fluctuate due to changes in market prices including exchange

rate risk interest rate risk and other price risks.

(1) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument

will fluctuate due to changes in market interest rates.The interest rate risk faced by the Company mainly arises from floating interest rate bank

deposits and floating interest rate loans which expose the Company to cash flow interest

rate risk. The Company has not yet established a policy to manage its interest rate risk but

management will carefully choose financing methods a combination of fixed and floating

interest rates and a combination of short-term debt and long-term debt. Using effective

interest rate risk management methods the Company will closely monitor interest rate risk

control the amount of floating rate borrowings and use interest rate swaps when necessary

to achieve the desired interest rate structure.

(2) Exchange rate risk

Exchange rate risk refers to the risk that the fair value or future cash flows of financial

instruments will fluctuate due to changes in foreign exchange rates.The Company's exposure to exchange rate risk is mainly related to US dollars Hong Kong

dollars Japanese yen and euros. Except for the Company's purchase of a small amount of

raw materials and sales of finished products which are settled in US dollars Hong Kong

dollars Japanese yen and euros the Company's other major business activities are settled in

RMB. As at June 30 2025 the assets or liabilities described in the following table were all

balances in US dollars Hong Kong dollars Japanese yen and Euros:

Item 30 June 2025 31 December 2024

Cash and Cash Equivalents – USD 122281630.43 45384220.89

Cash and Cash Equivalents – HKD 207.73

Non-current Liabilities Due Within One Year –

JPY 23176000.00 23176000.00

Long-term Borrowings – JPY 34764000.00 46352000.00

(2) Transfer of Financial Assets

1. Status of Financial Asset Transfers:

208Bengang Steel Plates Co. Ltd. Interim Report 2025

Transferred Financial Asset Basis for

Method of Financial Derecognition

Derecognition

Asset Transfer Nature Amount Status Assessment

Retains

substantially all

Endorsement/Discount Notes Not

311741833.24 risks and rewards

of Notes Receivable derecognized

including the

related credit risk

Substantially all

Accounts

Endorsement/Discount risks and rewards

Receivable 4517795874.04 Derecognized

of Notes have been

Financing

transferred

Total 4829537707.28

Explanation of the Basis for Derecognition Assessment: As of June 30 2025 the maturity

of receivables financing ranges from 1 to 12 months. According to the relevant provisions

of the Negotiable Instruments Law if the accepting bank refuses payment the holder of the

bill has the right to claim against the company. The company believes that it has transferred

substantially all the risks and rewards of these receivables. Therefore the company fully

derecognizes the receivables and the related settled accounts payable and recognizes the

discounting expense.

2. Financial Assets Derecognized Due to Transfer:

Items Method of Financial Asset Amount

Gains or Losses

Transfer Derecognized Related to Derecognition

Accounts

Receivable Endorsement/Discount of Notes 4517795874.04 17376933.79 Financing

Total 4517795874.04 17376933.79

10. Disclosure of fair value

The input value used in fair value measurement is divided into three levels:

The input value of the first level is the unadjusted quotation of the same asset or liability that

can be obtained on the measurement date in an active market.The input value of the second level is the input value of the related assets or liabilities that is

directly or indirectly observable except the input value of the first level.The third level of input value is the unobservable input value of related assets or liabilities.The level to which the fair value measurement result belongs is determined by the lowest level

to which the input value that is important to the fair value measurement as a whole belongs.

(1) Fair value of assets and liabilities measured at fair value at the end of the period

209Bengang Steel Plates Co. Ltd. Interim Report 2025

Fair value at the end of the period

Items First level fair Second level Third level fair value fair value value Total

measurement measurement measurement

1. Continuous fair value

measurement

Accounts receivable

financing 5552656.65 5552656.65

Other equity instrument

investments 933426254.63 933426254.63

11. Related party transactions

(1) Details of parent company

Registered Share Place of Notes of Voting

Name of parent company capital proportion Registry Business rights (%)

(%)

Benxi Steel & Iron (Group) Benxi

Manufacturing 8.00 billion 58.65 58.65

Co. Ltd. Liaoning

The ultimate controlling party of the Company is：Ansteel Group Co. Ltd.

(2) Details of the subsidiaries

For details of subsidiaries of the Company please refer to Note 7 “Equity in other entities”.

（3） The company's joint ventures and associatesFor details of joint ventures and associates of the Company please refer to Note 7 “Equity inother entities”.Other joint ventures or associates that had related-party transactions with the Company during

the current period or had balances resulting from related-party transactions with the Company

in prior periods are described below:

Name of joint ventures and associates Relationship

Shenyang Xiangyu New Materials Technology Co. Ltd. Associate

（4） Details of other related parties

Name of Other related parties Relationship

Bengang Group Co. Ltd. Controlling shareholder of the parent company

Bengang Stainless Steel Cold Rolling Dandong Co. Ltd. The same parent company

Benxi Iron and Steel (Group) Real Estate Development Co.Ltd. The same parent company

Benxi Iron and Steel (Group) Engineering Construction

Supervision Co. Ltd. The same parent company

210Bengang Steel Plates Co. Ltd. Interim Report 2025

Name of Other related parties Relationship

Benxi Iron and Steel (Group) Machinery Manufacturing

Co. Ltd. The same parent company

Benxi Iron and Steel (Group) Construction Co. Ltd. The same parent company

Benxi Iron and Steel (Group) Mining Co. Ltd. The same parent company

Benxi Iron and Steel (Group) Thermal Power Development

Co. Ltd. The same parent company

Benxi Steel Group Equipment Engineering Co. Ltd. The same parent company

Benxi Steel Group Industrial Development Co. Ltd. The same parent company

Benxi Steel Group Information Automation Co. Ltd. The same parent company

Benxi Steel Group Metallurgical Slag Co. Ltd. The same parent company

Benxi Iron and Steel (Group) Mining Yanjia Valley

Limestone Mine Co. Ltd. The same parent company

Benxi Steel Group Mining Liaoyang Ma'erling Pelletizing

Co. Ltd. The same parent company

Benxi Steel Group Mining Liaoyang Jiajiaopu Iron Mine

Co. Ltd. The same parent company

Benxi Iron and Steel (Group) Mining Mineral Resources

Development Co. Ltd. The same parent company

Benxi Iron and Steel (Group) Mining Construction

Engineering Co. Ltd. The same parent company

Benxi New Industrial Development Co. Ltd. The same parent company

Dalian Bolore Steel Pipe Co. Ltd. The same parent company

Liaoning Hengtai Heavy Machinery Co. Ltd. The same parent company

Liaoning Metallurgical Technician College The same parent company

Liaoning Metallurgical Vocational Technical College The same parent company

Bengang Electrical Co. Ltd. Associate of the parent company

Bengang Group International Economic and Trade Co. Ltd. Belong to Bengang Group

Benxi Beiying Iron and Steel (Group) Co. Ltd. Belong to Bengang Group

Liaoning Hengyi Steel Trading Co. Ltd Belong to Bengang Group

Angang Electrical Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Scrap Resources (Anshan) Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Steel Processing & Distribution (Dalian) Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Steel Processing & Distribution (Changchun) Co. Belong to Ansteel Group Co. Ltd.Ltd.Angang Steel Distribution (Hefei) Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Steel Distribution (Wuhan) Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Steel Rope Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Steel Company Limited Belong to Ansteel Group Co. Ltd.Angang Chemical Technology Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Group International Economic & Trade Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Group Mining Gongchangling Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Group Automation Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Construction Group Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Metal Structure Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Mining Machinery Manufacturing Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Green Resources Technology Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Energy Technology Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Industrial Group (Anshan) Equipment Operation & Belong to Ansteel Group Co. Ltd.Maintenance Co. Ltd.Angang Industrial Group Metallurgical Machinery Co. Ltd. Belong to Ansteel Group Co. Ltd.Angang Heavy Machinery Design & Research Institute Co. Belong to Ansteel Group Co. Ltd.Ltd.Angang Heavy Machinery Co. Ltd. Belong to Ansteel Group Co. Ltd.Delin Industrial Products Co. Ltd Belong to Ansteel Group Co. Ltd.Delin Land Port Supply Chain Services Co. Ltd Belong to Ansteel Group Co. Ltd.Guangzhou Ansteel Steel Processing Co. Ltd. Belong to Ansteel Group Co. Ltd.Tianjin Angang Steel Processing & Distribution Co. Ltd. Belong to Ansteel Group Co. Ltd.Changchun FAW Angang Steel Processing & Distribution Belong to Ansteel Group Co. Ltd.Co. Ltd.Angang Group Engineering Technology Co. Ltd. Belong to Ansteel Group Co. Ltd.

（5） Related Party Transactions

211Bengang Steel Plates Co. Ltd. Interim Report 2025

1.Related party transactions of purchasing goods and services

Details about purchasing goods and receiving services:

The content of

Name related party Current period Previous period

transactions

Angang (Liaoning) Materials Technology Engineering

218000.00

Co. Ltd. expenses

Repair

Angang Electrical Co. Ltd. 756800.00 242083.33

expenses

Angang Scrap Resources (Anshan) Co.Scrap steel 340185980.44 453356562.94

Ltd.Angang Scrap Resources (Anshan) Co.Raw materials 22561474.22 30067060.36

Ltd.Angang Steel Processing & Distribution Processing

153382.41

(Dalian) Co. Ltd. fees

Angang Steel Processing & Distribution

Raw materials 441290.28

(Dalian) Co. Ltd.

Angang Steel Processing & Distribution Processing

680768.33558509.59

(Changchun) Co. Ltd. fees

Angang Steel Processing & Distribution

Steel products 231977.35

(Zhengzhou) Co. Ltd.Auxiliary

Angang Steel Company Limited 3205093.05 2243259.03

materials

Ansteel Group Railway Equipment

Spare parts 146544.00

Checking&Repairing Company

Research and

Angang Group Beijing Research Institute

development 420000.00

Co. Ltd.expenses

Angang Group Engineering Technology Work safety

115000.00

Co. Ltd. expenses

Angang Group Engineering Technology Engineering

154988539.0641085063.99

Co. Ltd. expenses

Angang Group Engineering Technology Construction

132877141.5011399010.00

Co. Ltd. materials

Angang Group Engineering Technology Repair

757900.00440000.00

Co. Ltd. expenses

Angang Group International Economic & Raw and fuel

107305564.26

Trade Co. Ltd. materials

Angang Group International Economic &

Spare parts 582749.35

Trade Co. Ltd. Benxi Branch

Angang Group International Economic & Agency

18028337.20

Trade Co. Ltd. Benxi Branch service fees

General

Angang Group Energy-Saving Technology

contracting 3317075.13

Services Co. Ltd.fees

Angang Group Mining Gongchangling Co.Raw materials 76800921.59 283959301.79

Ltd.Ansteel Group Mining Co. LTD Raw materials 1482101.33

Other

Ansteel Group Co. Ltd 187932.88

expenses

Engineering

Angang Group Automation Co. Ltd. 1600000.00 51010000.00

expenses

Engineering

Angang Construction Group Co. Ltd. 10246537.92

expenses

Angang Construction Group Co. Ltd. Construction 5653200.00

212Bengang Steel Plates Co. Ltd. Interim Report 2025

The content of

Name related party Current period Previous period

transactions

materials

Angang Mining Automotive Transportation Transportation

276565.11

Co. Ltd. expenses

Angang Green Resources Technology Co. Transportation

4744570.38

Ltd. expenses

Ansteel Automobile Transportation Transportation

1442670.52

Co.Ltd. expenses

Angang ShenYang Steel Service Center Processing

6261.54

Co.Ltd. fees

Angang Industrial Group (Anshan) General

Equipment Operation & Maintenance Co. contracting 2780930.40 5186262.40

Ltd. fees

Angang Industrial Group Metallurgical

Spare parts 5449100.31 5171074.60

Machinery Co. Ltd.Angang Industrial Group Metallurgical Repair

607165.00742365.00

Machinery Co. Ltd. expenses

Other

Angang Industrial Group Co. Ltd. 23469.02

expenses

Ansteel Shuangsheng (Anshan) Fan Co. Repair

215000.00

Ltd expenses

Ansteel Water Technology (Liaoning) Co. Auxiliary

1612185.98

Ltd. materials

Angang Heavy Machinery Design & Engineering

15865600.00

Research Institute Co. Ltd. expenses

Angang Heavy Machinery Co. Ltd. Spare parts 3257110.00 2420723.73

Repair

Angang Heavy Machinery Co. Ltd. 286000.00

expenses

Business

Anshan Angang International Travel

travel service 11721.71 208942.62

Agency Co. Ltd.fees

Anshan Iron & Steel Metallurgical Furnace Auxiliary

1526938.8716017174.40

Material Technology Co. Ltd. materials

Anshan Jianbo Engineering Testing Co. Engineering

238000.00

Ltd. expenses

Bengang Stainless Steel Cold Rolling

Spare parts 836410.79

Dandong Co. Ltd.Auxiliary

Bengang Electrical Co. Ltd. 97672744.51 92154394.59

materials

Repair

Bengang Electrical Co. Ltd. 13890147.57 5501414.12

expenses

Bengang Gaoyuan Industrial Development

Spare parts 11880.00 953010.00

Co. Ltd.Bengang Gaoyuan Industrial Development Engineering

1280000.00282880.00

Co. Ltd. expenses

Bengang Gaoyuan Industrial Development Construction

2460000.003446194.70

Co. Ltd. materials

Bengang Gaoyuan Industrial Development Repair

360120.00552220.00

Co. Ltd. expenses

Bengang Group Dalian Refractory Auxiliary

1830776.631512678.48

Materials Co. Ltd materials

Bengang Group International Economic and Agency

3258589.5540066549.91

Trade Co. Ltd. service fees

Bengang Group Co. Ltd. Service fees 888143.50

213Bengang Steel Plates Co. Ltd. Interim Report 2025

The content of

Name related party Current period Previous period

transactions

Benxi Aike Hydraulic Sealing Co. Ltd. Spare parts 2155588.70 4523499.37

Benxi Northern Iron Industry Co. Ltd. Raw materials 5770319.12

Benxi Beiying Iron and Steel (Group) Co. Energy and

356672847.08317250973.21

Ltd. power

Benxi Beiying Iron and Steel (Group) Co. Auxiliary

4929741.554527949.56

Ltd. materials

Benxi Beiying Iron and Steel (Group) Co.Fuel 642622442.63 590246360.58

Ltd.Benxi Beiying Iron and Steel (Group) Co.Raw materials 5928330534.06 5445149888.78

Ltd.Benxi Beiying Iron and Steel (Group) Co. Transportation

3158081.083175834.38

Ltd. expenses

Benxi Beiying Iron and Steel (Group) Co.Weighing fees 757653.87 2084326.89

Ltd.Benxi Beiying Iron and Steel (Group) Co. Heating

7479982.491320665.34

Ltd. expenses

Benxi Beiying Iron and Steel (Group) Co. Chemical

701444.941000000.00

Ltd. testing fees

Benxi Beiying Iron and Steel (Group) Co. Repair

5936845.145423067.78

Ltd. expenses

General

Benxi Beiying Iron and Steel (Group) Co.contracting 39283771.00 40092290.58

Ltd.fees

Benxi Dongfenghu Steel Resource

Scrap steel 4390797.95 8502486.63

Utilization Co. Ltd.Benxi Dongfenghu Steel Resource

Fuel 2832492.90 5484933.10

Utilization Co. Ltd.Benxi Dongfenghu Steel Resource

Raw materials 2060273.59 3989582.04

Utilization Co. Ltd.Benxi Iron and Steel (Group) Real Estate

Raw materials 318201.40

Development Co. Ltd.Benxi Iron and Steel (Group) Engineering Engineering

885990.00694500.00

Construction Supervision Co. Ltd. expenses

Port

Benxi Steel and Iron(Group)Tengda

miscellaneous 19137576.17 50679877.49

Co.Ltd.charges

Benxi Steel and Iron(Group)Tengda

Fuel 37694.33 154788.70

Co.Ltd.Benxi Steel and Iron(Group)Tengda Transportation

265344221.52295615020.26

Co.Ltd. expenses

Benxi Iron and Steel (Group) Machinery

Spare parts 50983076.15 55121052.81

Manufacturing Co. Ltd.Benxi Iron and Steel (Group) Machinery

Scrap steel 3281399.65 6677925.78

Manufacturing Co. Ltd.Benxi Iron and Steel (Group) Machinery Auxiliary

19201582.2739076843.69

Manufacturing Co. Ltd. materials

Benxi Iron and Steel (Group) Machinery Engineering

12056060.003000000.00

Manufacturing Co. Ltd. expenses

Benxi Iron and Steel (Group) Machinery Construction

20065290.003094489.62

Manufacturing Co. Ltd. materials

Benxi Iron and Steel (Group) Machinery Repair

14497730.012320841.09

Manufacturing Co. Ltd. expenses

Benxi Iron and Steel (Group) Machinery Rental fees 418680.00 299057.14

214Bengang Steel Plates Co. Ltd. Interim Report 2025

The content of

Name related party Current period Previous period

transactions

Manufacturing Co. Ltd.Benxi Iron and Steel (Group) Machinery Labor service

343515.90317822.80

Manufacturing Co. Ltd. fees

General

Benxi Iron and Steel (Group) Machinery

contracting 10781894.34 6975467.86

Manufacturing Co. Ltd.fees

Benxi Iron and Steel (Group) Construction Work safety

2000000.005741845.00

Co. Ltd. expenses

Benxi Iron and Steel (Group) Construction Packaging

7858038.991461511.15

Co. Ltd. materials

Benxi Iron and Steel (Group) Construction

Scrap steel 684102.60 127235.76

Co. Ltd.Benxi Iron and Steel (Group) Construction Engineering

98463744.8922631700.36

Co. Ltd. expenses

Benxi Iron and Steel (Group) Construction Construction

40671630.4010000000.00

Co. Ltd. materials

Benxi Iron and Steel (Group) Construction Repair

25127019.5627404647.62

Co. Ltd. expenses

Benxi Iron and Steel (Group) Construction

Rental fees 3470033.34

Co. Ltd.Benxi Iron and Steel (Group) Construction Labor service

2129290.664104171.39

Co. Ltd. fees

General

Benxi Iron and Steel (Group) Construction

contracting 9485344.02 18282838.62

Co. Ltd.fees

Benxi Iron and Steel (Group) Mining Engineering

9058913.268862434.50

Construction Engineering Co. Ltd. expenses

Benxi Iron and Steel (Group) Mining Repair

8260865.0010010650.00

Construction Engineering Co. Ltd. expenses

Benxi Steel Group Mining Liaoyang

Scrap steel 152672.10

Jiajiaopu Iron Mine Co. Ltd.Benxi Steel Group Mining Liaoyang

Scrap steel 279470.60 341041.41

Ma'erling Pelletizing Co. Ltd.Benxi Steel Group Mining Liaoyang

Raw materials 1103428540.37 1346527431.40

Ma'erling Pelletizing Co. Ltd.Benxi Iron and Steel (Group) Mining Co. Auxiliary

190158542.30

Ltd. materials

Benxi Iron and Steel (Group) Mining Co.Scrap steel 6632504.30 8160528.43

Ltd.Benxi Iron and Steel (Group) Mining Co.Raw materials 1955904869.50 2406514429.03

Ltd.Benxi Iron and Steel (Group) Thermal

Scrap steel 134558.60 45088.60

Power Development Co. Ltd.Benxi Steel Group Equipment Engineering

Spare parts 11707144.31 8650212.00

Co. Ltd.Benxi Steel Group Equipment Engineering

Scrap steel 3157479.46 2723059.51

Co. Ltd.Benxi Steel Group Equipment Engineering Engineering

151358466.4156846193.36

Co. Ltd. expenses

Benxi Steel Group Equipment Engineering Construction

36584949.756757131.86

Co. Ltd. materials

Benxi Steel Group Equipment Engineering Repair

164381618.86253153105.08

Co. Ltd. expenses

215Bengang Steel Plates Co. Ltd. Interim Report 2025

The content of

Name related party Current period Previous period

transactions

General

Benxi Steel Group Equipment Engineering

contracting 3224355.85 1024685.00

Co. Ltd.fees

Benxi Steel Group Industrial Development Repair

1835300.00448651.00

Co. Ltd. expenses

Benxi Steel Group Industrial Development Greening

3526920.00320360.00

Co. Ltd. expenses

Benxi Steel Group Industrial Development Transportation

1581235.292339298.23

Co. Ltd. expenses

Benxi Steel Group Industrial Development Obsolete

154732.701260519.35

Co. Ltd. materials

Benxi Steel Group Industrial Development

Scrap steel 121754653.74 139005148.35

Co. Ltd.Benxi Steel Group Industrial Development

Raw materials 5438923.10 6209522.92

Co. Ltd.Benxi Steel Group Industrial Development Auxiliary

10345140.5817015.07

Co. Ltd. materials

Benxi Steel Group Information Automation Engineering

27709556.872211232.68

Co. Ltd. expenses

Benxi Steel Group Information Automation Construction

121702123.12106449785.65

Co. Ltd. materials

Information

system

Benxi Steel Group Information Automation

operation and 12000000.00 2000000.00

Co. Ltd.maintenance

fees

Benxi Steel Group Information Automation Repair

1242500.001141141.90

Co. Ltd. expenses

Work safety

Benxi Iron and Steel (Group) Co. LTD 1783000.00 3947340.00

expenses

Obsolete

Benxi Iron and Steel (Group) Co. LTD 13814.61 415855.29

materials

Engineering

Benxi Iron and Steel (Group) Co. LTD 119266.91 3506228.82

expenses

Technical

Benxi Iron and Steel (Group) Co. LTD 410000.00 1152972.96

service fees

Security and

Benxi Iron and Steel (Group) Co. LTD fire protection 9699583.40 22991434.62

fees

Energy and

Benxi Iron and Steel (Group) Co. LTD 112938.29 118036.44

power

Benxi Xihu Metallurgical Furnace Material Auxiliary

81308481.29103927615.78

Co. Ltd. materials

Benxi New Industrial Development Co. Office

691553.87767630.83

Ltd. expenses

Benxi New Industrial Development Co.Scrap steel 22295.00

Ltd.Business

Benxi New Industrial Development Co.entertainment 94085.00 238259.00

Ltd.expenses

Benxi New Industrial Development Co.Rental fees 120000.00 114285.72

Ltd.Benxi New Industrial Development Co. Other 313090.29 468194.98

216Bengang Steel Plates Co. Ltd. Interim Report 2025

The content of

Name related party Current period Previous period

transactions

Ltd. expenses

Delin Industrial Products Co. Ltd Spare parts 26641853.28 13534420.24

Auxiliary

Delin Industrial Products Co. Ltd 8783673.06 2106178.25

materials

Delin Land Port Supply Chain Services Co. Warehousing

373238.29241754.80

Ltd fees

Delin Land Port Supply Chain Services Co. Sales service

183674.08725223.98

Ltd fees

Liaoning Hengtai Heavy Machinery Co. Work safety

2280000.001230000.00

Ltd. expenses

Liaoning Hengtai Heavy Machinery Co.Spare parts 5900800.48 4281433.80

Ltd.Liaoning Hengtai Heavy Machinery Co.Scrap steel 177158.80 49347.00

Ltd.Liaoning Hengtai Heavy Machinery Co. Construction

10877800.002000000.00

Ltd. materials

Liaoning Hengtai Heavy Machinery Co. Repair

4246052.003712273.00

Ltd. expenses

General

Liaoning Hengtai Heavy Machinery Co.contracting 322275.00 910000.00

Ltd.fees

Liaoning Hengtai Heavy Machinery Co. Transportation