Bengang Steel Plates Co. Ltd.AUDITORS’REPORT
AND FINANCIAL STATEMENTS
PCPAR [2026] No. ZG10394Bengang Steel Plates Co. Ltd.AUDITORS’ REPORT AND FINANCIAL STATEMENTS
(From 1 January 2025 to 31 December 2025)
INDEX PAGES
1. AUDITORS’ REPORT 1-5
2. FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL 1-4
POSITIONAND STATEMENT OF FINANCIAL
POSITION
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOMEAND STATEMENT OF COMPREHENSIVE 5-6
INCOME
CONSOLIDATED STATEMENT OF CASH FLOWS 7-8
AND STATEMENT OF CASH FLOWS
CONSOLIDATED STATEMENT OF CHANGES IN 9-12
EQUITYAND STATEMENT OF CHANGES IN EQUITY
NOTES TO THE FINANCIAL STATEMENTS 1-182Auditors’ Report
PCPAR [2025] No. ZG10394
To All Shareholders of Bengang Steel Plates Co. Ltd.:
Auditor’s Opinion
We have audited the accompanying financial statements of Bengang Steel Plates Co. Ltd.(hereinafter referred to as “the Company”) which comprise the consolidated statement of
financial position and statement of financial position as at 31 December 2025 the
consolidated statement of comprehensive income and statement of comprehensive
income the consolidated statement of changes in equity and statement of changes in
equity the consolidated statement of cash flows and statement of cash flows for the year
then ended and notes to the financial statements.In our opinion the financial statements present fairly in all material respects the
consolidated financial position and financial position of the Company as at 31 December
2025 and the consolidated results of operations and results of operations and the
consolidated cash flows and cash flows of the Company for the year then ended in
accordance with the requirements of Accounting Standards for Business Enterprises.Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing for Certified
Public Accountants. Our responsibilities under those standards are further described in
the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the Company in accordance with the China Code of Ethics
for Certified Public Accountants No. 1 Independence Requirements for Audit and
Review Engagements and we have fulfilled our other ethical responsibilities in
accordance with China Code of Ethics for Certified Public Accountants. We have
complied with the independence requirements applicable to audits of public interest
entities. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.Key Audit Matters
The key audit matters are matters that we consider to be the most important for the audit
of the current financial statements based on professional judgment. The response to these
matters is based on the overall audit of the financial statements and the formation of audit
opinions. We do not express a separate opinion on these matters.We have identified the following items as key audit matters that need to be disclosed in
the audit report.Key Audit Matters Audit Procedure
1. Revenue RecognitionPlease refer to the Note (20) under “3. The main audit procedures we performed areAuditors’ Report Page 1Significant accounting policies and accounting as follows:estimates” and Note (30) under “5. Notes to (1) Understand and test the key internalconsolidated financial statements”. controls related to revenue and evaluate
whether the relevant controls are appropriate
In 2025 the amount of operating income and effectively implemented; (2) We
recognized in the consolidated financial performed analytical procedures on revenue
statements is RMB 46392.25 million. Since including comparison of the gross profit of the
revenue is a key performance indicator of the current period of revenue of major products
Company the management of the Company with that of the previous period analysis of
may have a significant risk of misstatement in revenue fluctuations and checking whether
revenue recognition. Therefore we consider there are any abnormalities;
revenue recognition as a key audit matter. (3) Obtain the detailed sales records for the
current year select samples of revenue
transactions recorded in the current year
check the supporting documents such as sales
contracts invoices yard sheets customs
declarations and evaluate whether the
relevant revenue recognition complies with
the company's accounting policies;
(4) Select samples to check sales contracts
identify the contract terms and conditions
related to the transfer of control of goods and
evaluate whether the timing of revenue
recognition of the Company complies with the
requirements of Accounting Standards for
Business Enterprises;
(5) In combination with the accounts
receivable audit procedures perform
confirmation procedures with sample
customers for sales revenue during the
reporting period;
(6) Check the sales to related parties review
the fairness of the transaction prices of related
parties and perform confirmation procedures
with related party customers;
(7) Check whether information related to
revenue has been properly reported and
Auditors’ Report Page 2disclosed in the financial statements.
2. Impairment of InventoryPlease refer to the Note （ 12） under “3. The main audit procedures we performed areSignificant accounting policies and accounting as follows:estimates” and Note (7) under “5. Notes to (1) Evaluated the design and operation ofconsolidated financial statements”. internal control related to the impairment of
inventory;
As at December 312025 the carrying amount (2) Supervise stocktaking and check the
of inventory in consolidated statement is RMB quantity and status of inventory especially the
6719.74 million impairment of inventory is aged inventory;
RMB 350.55 million the book value of (3) Obtain the calculation schedule of the
inventory is RMB 6369.19 million. Inventory impairment of inventory. Check whether it
is measured at the lower of cost and net follows the requirements of related accounting
realizable value. The sufficiency of standards of the Company check the changes
impairment for inventory will exert a great in the inventory impairment provision made in
impact on the financial statement. previous years etc. and analyze whether the
inventory impairment provision is sufficient;
The net realizable value of finished goods is (4) Implement net realizable value testing of
determined by deducting the estimated selling inventories and review the method of making
expenses and related taxes from the estimated provisions for inventory impairment and test
selling price. the integrity of the reports and data on which
it is based.Management estimates the expected selling
price based on the condition of inventory. It
involves significant management judgement in
the estimation process.As at December 31 2025 the carrying
amount of inventory was significant and
involves the estimation of net realizable value.Therefore we identified it as a key audit
matter.Other information
The management of the Company is responsible for the other information. The other
information comprises information of the Company's annual report for the period of 2025
but excludes the financial statements and our auditor's report.Auditors’ Report Page 3Our opinion on the financial statements does not cover the other information and we do
not and will not express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the
other information identified above and in doing so consider whether the other
information is materially inconsistent with the financial statements or our knowledge
obtained in the audit if there appears to be a material misstatement.Based on the work we have performed if we determine that there is a material
misstatement of other information we should report that fact. In this regard we have
nothing to report.Responsibilities of Management and Those Charged with Governance for the
Financial Statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with requirements of Accounting Standards for Business
Enterprises and for such internal control as management determines is necessary to
enable the preparation of financial statements that are free from material misstatement
whether due to fraud or error.In preparing the financial statements management of the Company is responsible for
assessing the Company's ability to continue as a going concern disclosing as applicable
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations or has no
realistic alternative but to do so.Those charged with governance are responsible for supervising the Company's financial
reporting process.Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements
are free from material misstatement whether due to fraud or error and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance but is not a guarantee that an audit conducted in accordance with China
Standards on Auditing for Certified Public Accountants will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if individually or in the aggregate they could reasonably be
expected to influence the economic decisions of users taken on the basis of these
financial statements.As part of an audit in accordance with accordance with Chinese Certified Public
Accountants Auditing Standards we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements
whether due to fraud or error design and perform audit procedures responsive to those
risks and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error as fraud may involve collusion forgery
intentional omissions misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances.Auditors’ Report Page 4(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
(4) Conclude on the appropriateness of management’s use of the going concern basis of
accounting and based on the audit evidence obtained whether a material uncertainty
exists related to events or conditions that may cast significant doubt on Bengang Steel
Plate’s ability to continue as a going concern. If we conclude that a material uncertainty
exists we are required to draw attention in our auditor’s report to the related disclosures
in the financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However future events or conditions may cause the Company to cease to
continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements
including the disclosures and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information
of entities or business activities within the Company to express an opinion on the
financial statements. We are responsible for guiding supervising and executing the group
audit and assume full responsibility for the audit opinion.We communicate with those charged with governance regarding among other matters
the planned scope and timing of the audit and significant audit findings including any
significant deficiencies in internal control that we identify during our audit.We also provide a statement to those charged with governance on compliance with the
ethical requirements associated with independence and communicate with those charged
with governance all relationships and other matters that may reasonably be considered to
affect our independence and related precautions (if applicable).From the matters communicated with those charged with governance we determine
those matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditor's report unless law or regulation precludes public disclosure about the matter or
when in extremely rare circumstances we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.BDO CHINA SHU LUN PAN CERTIFIED Certified Public Accountants of China
PUBLIC ACCOUNTANTS LLP (Engagement Partner)
Certified Public Accountants of China
Shanghai the People’s Republic of China 2 April 2026
This auditor’s report and the accompanying notes to the financial statement are English translation of the
Chinese auditors’ report. In case of doubt as to the presentation of these documents the Chinese version shall
prevail.Auditors’ Report Page 5BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Assets Notes Dec 31 2025 Dec 31 2024
Current assets
Cash at bank and on hand 5 (1) 1127390675.15 2453888470.48
Financial assets held for trading
Derivative financial assets
Notes receivable 5 (2) 399759776.83 607279481.42
Accounts receivable 5 (3) 1178780456.77 501484081.73
Accounts receivable financing 5 (4) 331321177.27 64399942.70
Prepayments 5 (5) 314825894.06 391823135.87
Premium receivable
Reinsurance accounts receivable
Receivable deposit for reinsurance contract
Other receivables 5 (6) 4034061.03 149015138.26
Redemptory financial assets for sale
Inventories 5 (7) 6369194886.12 7333084694.27
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 5 (8) 450271362.93 437081260.66
Total current assets 10175578290.16 11938056205.39
Non-current assets
Loan and advances issued
Debt Investments
Other debt investments
Long-term receivables
Long-term equity investments 5 (9) 43269884.04 45413221.72
Other equity instrument investments 5 (10) 890420831.77 933426254.63
Other non-current financial assets
Investment property
Fixed assets 5 (11) 28412673622.89 26426320453.57
Construction in progress 5 (12) 3074712066.38 3934442501.50
Productive biological assets
Oil and gas assets
Right-of-use assets 5 (13) 2607155393.90 1685925710.14
Intangible assets 5 (14) 383659012.77 394780068.68
Development expenditure 6 (2) 3700000.00
Goodwill
Long-term deferred expenses
Deferred tax assets 5 (15) 124211917.95 371234449.79
Other non-current assets 5 (16) 54632516.72 86297275.16
Total non-current assets 35594435246.42 33877839935.19
Total assets 45770013536.58 45815896140.58
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 1BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued)
As at 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Liabilities and equities Notes Dec 312025 Dec 31 2024
Current Liabilities
Short-term loans 5 (18) 333660470.12 371055490.50
Loan from central bank
Loan from other banks
Financial liability held for trading
Derivative financial liabilities
Notes payable 5 (19) 12962287642.88 12982703669.86
Accounts payable 5 (20) 2667236412.66 2761759439.36
Advance from customers 5 (21) 49541.35 59327.21
Contract liabilities 5 (22) 2736697947.25 2908598425.73
Financial assets sold for repurchase
Deposits from customers and interbank
Receipt from vicariously traded securities
Receipt from vicariously underwriting securities
Employee benefits payable 5 (23) 2586883.29 1773068.35
Current tax liabilities 5 (24) 59857286.81 54070097.83
Other payables 5 (25) 2775544196.11 2354694200.01
Handling charges and commission payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 5 (26) 6940934862.49 1030502916.66
Other current liabilities 5 (27) 275281765.24 328981058.74
Total current liabilities 28754137008.20 22794197694.25
Non-current liabilities
Provision for insurance contract
Long-term loans 5 (28) 6014469758.11 2891941462.40
Bonds payable 5 (29) 5569899459.53
Including: Preferred stock
Perpetual bond
Lease liabilities 5 (30) 2239436105.64 1633911586.51
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income 5 (31) 158199416.58 173919087.47
Deferred tax liabilities 5 (15) 252893530.26
Other non-current liabilities
Total non-current liabilities 8412105280.33 10522565126.17
Total liabilities 37166242288.53 33316762820.42
Shareholders' equity:
Share capital 5 (32) 4108236253.00 4108228157.00
Other equity instruments 5 (33) 947843680.82 947850195.03
Including: Preferred stock
Perpetual bond
Capital reserves 5 (34) 13252955837.48 13225632166.95
Less: treasury shares
Other comprehensive income 5 (35) -129961806.05 -93407196.62
Special reserves 5 (36) 881502.23 809649.65
Surplus reserves 5 (37) 1195116522.37 1195116522.37
General risk reserve
Undistributed profits 5 (38) -11439289982.02 -7497011632.90
Total equity attributable to equity holders of the parent company 7935782007.83 11887217861.48
Non-controlling interests 667989240.22 611915458.68
Total shareholder's equity 8603771248.05 12499133320.16
Total of liabilities and owners’ equity 45770013536.58 45815896140.58
The notes to the financial statements attached form part of these financial statements.Legal Representative： Chief Financial Officer: Chief Accountant:
Financial Statements Page 2BENGANG STEEL PLATES CO. LTD.STATEMENT OF FINANCIAL POSITION
As at 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Assets Notes Dec 31 2025 Dec 31 2024
Current assets
Cash at bank and on hand 969348936.91 1928597252.93
Financial assets held for trading
Derivative financial assets
Notes receivable 288032009.55 879167997.23
Accounts receivable 15 (1) 1153889227.54 899413301.62
Accounts receivable financing 334034656.97 67033501.52
Prepayments 274799041.59 552668067.77
Other receivables 15 (2) 55731976.38 399809663.60
Inventories 5607342964.33 6510049399.94
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 417408930.19 401232007.64
Total current assets 9100587743.46 11637971192.25
Non-current assets
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 15 (3) 2465813343.47 2437356681.15
Other equity instrument investments 890420831.77 933426254.63
Other non-current financial assets
Investment property
Fixed assets 27265548170.25 25361023150.98
Construction in progress 2965847309.52 3813480844.57
Productive biological assets
Oil and gas assets
Right-of-use assets 2607155393.90 1685925710.14
Intangible assets 199952774.53 206105870.50
Including: data assets
Development expenditure 3700000.00
Including: data assets
Goodwill
Long-term deferred expenses
Deferred tax assets 122987010.55 370213799.88
Other non-current assets 53948721.72 85556957.68
Total non-current assets 36575373555.71 34893089269.53
Total assets 45675961299.17 46531060461.78
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 3BENGANG STEEL PLATES CO. LTD.STATEMENT OF FINANCIAL POSITION (Continued)
As at 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Liabilities and shareholders' equities Notes Dec 31 2025 Dec 31 2024
Current liabilities
Short-term loans 333660470.12 371055490.50
Financial liability held for trading
Derivative financial liabilities
Notes payable 10945673752.38 11915812506.01
Accounts payable 2726855682.41 2881087998.48
Prepayments
Contract liabilities 6807101441.62 6637545634.05
Employee benefits payable 631573.72 354432.32
Current tax liabilities 31524009.09 28685832.43
Other payables 2619633120.59 2206387975.74
Liabilities held for sale
Non-current liabilities due within one year 6940934862.49 1030502916.66
Other current liabilities 58382271.92 61868166.75
Total current liabilities 30464397184.34 25133300952.94
Non-current liabilities
Long term loans 6014469758.11 2891941462.40
Bonds payable 5569899459.53
Including: Preferred stock
Perpetual bond
Lease liabilities 2239436105.64 1633911586.51
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income 158199416.58 154871615.47
Deferred tax liabilities 252893530.26
Other non-current liabilities
Total non-current liabilities 8412105280.33 10503517654.17
Total liabilities 38876502464.67 35636818607.11
Shareholder’s equity:
Share capital 4108236253.00 4108228157.00
Other equity instruments 947843680.82 947850195.03
Including: Preferred stock
Perpetual bond
Capital reserves 12852466024.55 12825142354.02
Less: Treasury shares
Other comprehensive income -129961806.05 -93407196.62
Special reserves 17561.83 9276.81
Surplus reserves 1195116522.37 1195116522.37
Undistributed Profits -12174259402.02 -8088697453.94
Total shareholder's equity 6799458834.50 10894241854.67
Total liabilities and shareholder’s equity 45675961299.17 46531060461.78
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 4BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Expressed in Renminbi unless otherwise indicated)
Items Notes Current period Previous period
1. Total operating income 46392250494.48 51266361501.22
Including: Operating income 5 (39) 46392250494.48 51266361501.22
Interest income
Premium earned
Income from handling charges and commission
2. Total operating cost 49974287269.50 56068974028.50
Including: Operating cost 5 (39) 48441024611.38 54693756805.43
Interest expense
Expenditure for handling charges and commission
Surrender value
Net expenditure for compensation
Net provision for insurance contract appropriated
Bonus payment for policy
Reinsurance premium
Tax and surcharges 5 (40) 205223238.29 203043367.36
Selling and distribution expenses 5 (41) 136838793.14 142638617.77
General and administrative expenses 5 (42) 672219542.49 702788411.83
Research and development expenses 5 (43) 90978954.16 86415509.29
Financial expenses 5 (44) 428002130.04 240331316.82
Including: Interest expense 394193802.90 384713981.73
Interest income 32518614.84 43019766.05
Add: Other income 5 (45) 164261547.31 200140947.91
Income on investment（“-” for loss） 5 (46) -10956792.93 -42967621.92
Including: Income from associates and joint ventures -2143337.68 -1497124.69
Income from derecognition of financial assets measured at amortized cost -3911446.37 -60611.63
Exchange gains（“-” for loss）
Net exposure hedge income（“-” for loss）
Gains from change of fair value （“-” for loss）
Credit impairment loss （“-” for loss） 5 (47) -19654328.59 50143005.20
Asset impairment loss （“-” for loss） 5 (48) -303933278.79 -278486334.42
Assets disposal gains（“-” for loss） 5 (49) 3008.85 13020778.49
3. Operational profit（“-” for loss） -3752316619.17 -4860761752.02
Add: Non-operating income 5 (50) 23612863.00 45789122.58
Less: Non-operating expenses 5 (51) 63205937.35 54707998.74
4. Total profit (“-” for loss) -3791909693.52 -4869680628.18
Less: Income tax expenses 5 (52) 63505290.33 90436789.08
5. Net profit（“-” for loss） 5 (39) -3855414983.85 -4960117417.26
1.Classification by continuing operating
1.Net profit from continuing operation（“-” for loss） -3855414983.85 -4960117417.26
2.Net profit from discontinued operation（“-” for loss）
2.Classification by ownership
1. Net profit attributable to the owners of parent company （“-” for loss） -3942278349.12 -5037271398.28
2. Net profit attributable to non-controlling shareholders （“-” for loss） 86863365.27 77153981.02
6.Other comprehensive income -36554609.43 -43035854.74
Other comprehensive income attributable to owners of the parent company after tax -36554609.43 -43035854.74
1.Other comprehensive income items that will not be reclassified into gains/losses -36554609.43 -43035854.74
1) Re-measurement of defined benefit plans of changes in net debt or net assets
2) Other comprehensive income under the equity method cannot be reclassified into
profit or loss
3) Changes in fair value of investments in other equity instruments -36554609.43 -43035854.74
4) Changes in fair value of company's credit risk
2.Other comprehensive income that will be reclassified into profit or loss.
1) Other comprehensive income under the equity method which can be reclassified into
profit or loss
2) Changes in fair value of other debt investments
3) Amount of financial assets reclassified into other comprehensive income
4) Credit impairment provision of other debt investments
5) Cash flow hedges reserve
6) Translation differences in foreign currency financial statements
7) Others
Other comprehensive income attributable to non-controlling shareholders’ equity after tax
7. Total comprehensive income -3891969593.28 -5003153272.00
Total comprehensive income attributable to the owner of the parent company -3978832958.55 -5080307253.02
Total comprehensive income attributable to non-controlling shareholders 86863365.27 77153981.02
8. Earnings per share
1）Basic earnings per share -0.960 -1.226
2）Diluted earnings per share -0.960 -1.226
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 5BENGANG STEEL PLATES CO. LTD.STATEMENT OF COMPREHENSIVE INCOME
(Expressed in Renminbi unless otherwise indicated)
Items Notes Current period Previous period
1. Total operating income 15 (4) 46608433844.68 51996293457.84
Less: Operating cost 15 (4) 49052494863.75 55850177739.34
Tax and surcharges 154117521.94 155742776.69
Selling and distribution expenses 206212620.79 175678966.90
General and administrative expenses 635001972.87 666227276.41
Research and development expenses 93809142.84 86415509.29
Financial expenses 427387218.08 260257651.32
Including: Interest expense 394193802.90 384713981.73
Interest income 28799233.97 36704884.79
Add: Other income 85492365.82 129520303.41
Income on investment（“-” for loss） 15 (5) 172333768.77 120893779.91
Including: Income from associates and joint ventures -2143337.68 -1497124.69
Income from derecognition of financial assets
-1112684.35-60611.63
measured at amortized cost
Net exposure hedge income（“-” for loss）
Gains from change of fair value （“-” for loss）
Credit impairment loss（“-” for loss） -41147890.54 30265261.74
Assets impairment loss（“-” for loss） -303933278.79 -278486334.42
Assets disposal gains（“-” for loss） 3008.85 13017822.58
2. Operational profit（“-” for loss） -4047841521.48 -5182995628.89
Add: Non-operating income 23020727.52 45130689.39
Less: Non-operating expenses 59957081.62 42889041.92
3. Total profit (“-” for loss) -4084777875.58 -5180753981.42
Less: Income tax expenses 784072.50 7932735.25
4. Net profit（“-” for loss） -4085561948.08 -5188686716.67
1.Net profit from continuing operation (“-” for loss) -4085561948.08 -5188686716.67
2.Net profit from discontinued operation (“-” for loss)
5.Other comprehensive income -36554609.43 -43035854.74
1.Other comprehensive income items that will not be reclassified into
-36554609.43-43035854.74
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 -36554609.43 -43035854.74
4) Changes in fair value of company's credit risk
2.Other comprehensive income that will be reclassified into profit or
loss.
1) Other comprehensive income under the equity method investee
can be reclassified into profit or loss
2) Changes in fair value of other debt investments
3) Amount of financial assets reclassified into other comprehensive
income
4) Credit impairment provision of other debt investments
5) Cash flow hedges reserve
6) Translation differences in foreign currency financial statements
7) Others
6. Total comprehensive income -4122116557.51 -5231722571.41
7. Earnings per share
1）Basic earnings per share
2）Diluted earnings per share
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 6BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF CASH FLOWS
(Expressed in Renminbi unless otherwise indicated)
Items Notes Current period Previous period
1.Cash flow from operating activities
Cash received from sale of goods or rendering of services 50026889989.74 55987587183.40
Net increase of customers' deposit and interbank deposit
Net increase of loan from central bank
Net increase of loans from other financial institutions
Cash received for premium of original insurance contract
Net cash received for reinsurance business
Net increase of deposit and investment of the insured
Cash from receiving interest handling charge and commission
Net increase of loans from borrowing funds
Net increase of fund for repurchase business
Net cash received from traded securities
Tax rebate received 80766690.15 124001236.84
Other cash received relating to operating activities 5 (53) 211451415.77 243342089.30
Subtotal of cash inflows from operating activities 50319108095.66 56354930509.54
Cash paid for goods and services 49271145124.19 52271670593.20
Net increase of customer's loan and advances
Net increase of deposit in central bank and interbank deposit
Cash for payment of compensation for original insurance contract
Net increase in capital lent
Cash for payment of interest handling charge and commission
Cash for payment of policy bonus
Cash paid to and on behalf of employees 2052215880.51 2136471168.09
Cash paid for all types of taxes 368535776.73 440396205.59
Other cash paid relating to operating activities 5 (53) 416028082.03 406104548.41
Subtotal of cash outflows from operating activities 52107924863.46 55254642515.29
Net cash flows from operating activities -1788816767.80 1100287994.25
2. Cash flows from investing activities
Cash received from disposal of investments
Cash received from return on investments
Net cash received from disposal of fixed assets intangible assets and other 87183020.00 137069554.37
long-term assets
Net cash received from disposal of subsidiary and other operating units
Other cash paid relating to investing activities
Subtotal of cash inflows from investing activities 87183020.00 137069554.37
Cash paid for acquisition of fixed assets intangible assets and other long-term 2215737062.01 975204696.55
assets
Cash paid for acquisition of investments 60000000.00
Net increase of mortgage loan
Net cash received from subsidiary and other operating unit
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities 2275737062.01 975204696.55
Net cash flows from investing activities -2188554042.01 -838135142.18
3. Cash flows from financing activities
Proceeds from investment 29400000.00
Including: Proceeds from investment of non-controlling shareholders of subsidiary 29400000.00
Proceeds from borrowings 7139897823.71 3765000000.00
Other proceeds relating to financing activities 5 (53) 3237423685.03 3808123889.76
Subtotal of cash inflows from financing activities 10406721508.74 7573123889.76
Cash repayments of borrowings 4065389832.66 2283590268.00
Cash payments for distribution of dividends profit or interest expenses 481435722.54 274024906.84
Including: Cash paid to non-controlling shareholders as dividend and profit by 109257912.53
subsidiaries
Other cash payments relating to financing activities 5 (53) 3190656112.46 4940069284.22
Subtotal of cash outflows from financing activities 7737481667.66 7497684459.06
Net cash flows from financing activities 2669239841.08 75439430.70
4. Effect of foreign exchange rate changes on cash and cash equivalents 5396056.13 52927527.76
5. Net increase in cash and cash equivalents 5 (54) -1302734912.60 390519810.53
Add: Cash and cash equivalents at the beginning of the period 5 (54) 1590205218.91 1199685408.38
6. Cash and cash equivalents at the ending of the period 5 (54) 287470306.31 1590205218.91
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 7BENGANG STEEL PLATES CO. LTD.STATEMENT OF CASH FLOWS
(Expressed in Renminbi unless otherwise indicated)
Items Notes Current period Previous period
1. Cash flow from operating activities
Cash received from sale of goods or rendering of services 48170024193.40 55337530940.66
Tax rebate received 80766690.15 117007166.59
Other cash received relating to operating activities 687293202.21 214590835.88
Subtotal of cash inflows from operating activities 48938084085.76 55669128943.13
Cash paid for goods and services 47784396245.98 52556437895.34
Cash paid to and on behalf of employees 1897848930.90 1974094315.49
Cash paid for all types of taxes 229932897.98 280573222.50
Other cash paid relating to operating activities 840031988.11 365386433.69
Subtotal of cash outflows from operating activities 50752210062.97 55176491867.02
Net cash flows from operating activities -1814125977.21 492637076.11
2. Cash flows from investing activities
Cash received from disposal of investments
Cash received from return on investments 374456351.38 199000000.00
Net cash received from disposal of fixed assets intangible
87181100.00137064700.00
assets and other long-term assets
Net cash received from disposal of subsidiary and other
operating units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 461637451.38 336064700.00
Cash paid for acquisition of fixed assets intangible assets and
2198525334.45966576178.20
other long-term assets
Cash paid for acquisition of investments 90600000.00
Net cash paid for acquisition of subsidiary and other operating
unit
Other cash paid relating to investing activities
Subtotal of cash outflows paid for investing activities 2289125334.45 966576178.20
Net cash flows from investing activities -1827487883.07 -630511478.20
3. Cash flows from financing activities
Proceeds from investment
Cash received from borrowings 7139897823.71 3765000000.00
Other cash received relating to financing activities 3237423685.03 3808123889.76
Subtotal of cash inflows from financing activities 10377321508.74 7573123889.76
Cash repayments of borrowings 4065389832.66 2283590268.00
Cash payments for distribution of dividends profit or interest 372177810.01 274024906.84
Other cash payments relating to financing activities 3190656112.46 4940069284.22
Subtotal of cash outflows from financing activities 7628223755.13 7497684459.06
Net cash flows from financing activities 2749097753.61 75439430.70
4. Effect of foreign exchange rate changes on cash and cash
5081250.0852846084.97
equivalents
5. Net increase in cash and cash equivalents -887434856.59 -9588886.42
Add: Cash and cash equivalents at the beginning of the period 1064914001.36 1074502887.78
6. Ending balance of cash and cash equivalents 177479144.77 1064914001.36
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 8BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(Expressed in Renminbi unless otherwise indicated)
Current period
Owner's equity attributable to parent company
Items Other equity instruments Less: Other General Non-controlling Total of owner's
Share capital Preference Perpetual Capital reserves Treasury comprehensive Special reserves Surplus reserves risk Undistributed profit Subtotal interest equity
shares bond Others shares income reserve
1. Ending balance of last year 4108228157.00 947850195.03 13225632166.95 -93407196.62 809649.65 1195116522.37 -7497011632.90 11887217861.48 611915458.68 12499133320.16
Add: Change of accounting policies
Correction of errors for last period
Business consolidation under common control
Others
2. Beginning balance of current year 4108228157.00 947850195.03 13225632166.95 -93407196.62 809649.65 1195116522.37 -7497011632.90 11887217861.48 611915458.68 12499133320.16
3. Changes in current year (“-” for decrease) 8096.00 -6514.21 27323670.53 -36554609.43 71852.58 -3942278349.12 -3951435853.65 56073781.54 -3895362072.11
1) Total comprehensive income -36554609.43 -3942278349.12 -3978832958.55 86863365.27 -3891969593.28
2) Capital increase and decrease by
8096.00-6514.2127323670.5327325252.3229400000.0056725252.32
shareholders
(1) Common share invested by shareholders 29400000.00 29400000.00
(2) Capital input by the holder of other equity
8096.00-6514.2123670.5325252.3225252.32
instruments
(3) Share-based payment attributable to
owners' equity
(4) Others 27300000.00 27300000.00 27300000.00
3) Profit distribution -60185989.14 -60185989.14
(1) Appropriation to surplus reserves
(2) Appropriation to general risk reserve
(3) Profit distribution to shareholders -60185989.14 -60185989.14
(4) Others
4) Transfers within shareholders' equity
(1) Capital reserves transferred into paid-in
capital (or stock)
(2) Surplus reserves transferred into paid-in
capital (or stock)
(3) Surplus reserves to recover loss
(4) Net changes of defined contribution plans
transferred into Retained Earnings
(5) Other comprehensive income transferred
into Retained Earnings
(6) Others
5) Special reserves 71852.58 71852.58 -3594.59 68257.99
(1) Provision of special reserves 64166383.03 64166383.03 4513102.89 68679485.92
(2) Use of special reserves 64094530.45 64094530.45 4516697.48 68611227.93
6) Others
4. Ending balance of current year 4108236253.00 947843680.82 13252955837.48 -129961806.05 881502.23 1195116522.37 -11439289982.02 7935782007.83 667989240.22 8603771248.05
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 9BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
(Expressed in Renminbi unless otherwise indicated)
Previous period
Owner's equity attributable to parent company
Items Other equity instruments Other General Non-controlling Total of owner's
Less: Treasury Undistributed
Share capital Preference Perpetual Capital reserves comprehensive Special reserves Surplus reserves risk Subtotal interest equity
Others shares profit
shares bond income reserve
1. Ending balance of last year 4108219302.00 947858134.16 13422225870.92 -50371341.88 163055.04 1195116522.37 -2414685928.92 17208525613.69 589070286.60 17797595900.29
Add: Change of accounting policies
Correction of errors for last period
Business consolidation under common control
Others
2. Beginning balance of current year 4108219302.00 947858134.16 13422225870.92 -50371341.88 163055.04 1195116522.37 -2414685928.92 17208525613.69 589070286.60 17797595900.29
3. Changes in current year (“-” for decrease) 8855.00 -7939.13 -196593703.97 -43035854.74 646594.61 -5082325703.98 -5321307752.21 22845172.08 -5298462580.13
1) Total comprehensive income -43035854.74 -5037271398.28 -5080307253.02 77153981.02 -5003153272.00
2) Capital increase and decrease by shareholders 8855.00 -7939.13 -196593703.97 -196592788.10 -196592788.10
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity 8855.00 -7939.13 25840.89 26756.76 26756.76
instruments
(3) Share-based payment attributable to owners'
equity
(4) Others -196619544.86 -196619544.86 -196619544.86
3) Profit distribution -45054305.70 -45054305.70 -54632794.65 -99687100.35
(1) Appropriation to surplus reserves
(2) Appropriation to general risk reserve
(3) Profit distribution to shareholders -45054305.70 -45054305.70 -54632794.65 -99687100.35
(4) Others
4) Transfers within shareholders' equity
(1) Capital reserves transferred into paid-in capital
(or stock)
(2) Surplus reserves transferred into paid-in
capital (or stock)
(3) Surplus reserves to recover loss
(4) Net changes of defined contribution plans
transferred into Retained Earnings
(5) Other comprehensive income transferred into
Retained Earnings
(6) Others
5) Special reserves 646594.61 646594.61 323985.71 970580.32
(1) Provision of special reserves 72180947.90 72180947.90 5182353.19 77363301.09
(2) Use of special reserves 71534353.29 71534353.29 4858367.48 76392720.77
6) Others
4. Ending balance of current year 4108228157.00 947850195.03 13225632166.95 -93407196.62 809649.65 1195116522.37 -7497011632.90 11887217861.48 611915458.68 12499133320.16
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 10BENGANG STEEL PLATES CO. LTD.STATEMENT OF CHANGES IN EQUITY
(Expressed in Renminbi unless otherwise indicated)
Current period
Items Other equity instruments Less: Other
Treasury comprehensi Special Undistributed Total shareholder’sShare capital Preference Perpetual Capital reserves Surplus reserves
Others reserves profits equity
shares bond shares ve income
1. Ending balance of last year 4108228157.00 947850195.03 12825142354.02 -93407196.62 9276.81 1195116522.37 -8088697453.94 10894241854.67
Add: Change of accounting policies
Correction of errors for last period
Others
2. Beginning balance of current year 4108228157.00 947850195.03 12825142354.02 -93407196.62 9276.81 1195116522.37 -8088697453.94 10894241854.67
3. Changes in current year (“-” for decrease) 8096.00 -6514.21 27323670.53 -36554609.43 8285.02 -4085561948.08 -4094783020.17
1) Total comprehensive income -36554609.43 -4085561948.08 -4122116557.51
2) Capital increase and decrease by shareholders 8096.00 -6514.21 27323670.53 27325252.32
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity instruments 8096.00 -6514.21 23670.53 25252.32
(3) Share-based payment attributable to shareholders' equity
(4) Others 27300000.00 27300000.00
3) Profit distribution
(1) Appropriation of surplus reserves
(2) Profit distribution to shareholders
(3) Others
4) Transfers within shareholders' equity
(1) Capital reserves transferred into paid-in capital (or stock)
(2) Surplus reserves transferred into paid-in capital (or stock)
(3) Surplus reserves to recover loss
(4) Net changes of defined contribution plans transferred into
Retained Earnings
(5) Other comprehensive income transferred into retained earnings
(6) Others
5) Special reserves 8285.02 8285.02
(1) Provision of special reserves 50656268.19 50656268.19
(2) Use of special reserves 50647983.17 50647983.17
6) Others
4. Ending balance of current year 4108236253.00 947843680.82 12852466024.55 -129961806.05 17561.83 1195116522.37 -12174259402.02 6799458834.50
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 11BENGANG STEEL PLATES CO. LTD.STATEMENT OF CHANGES IN EQUITY (Continued)
(Expressed in Renminbi unless otherwise indicated)
Previous period
Other equity instruments Less: Other
Items Special Undistributed Total shareholder’s
Share capital Preference Perpetual Capital reserves Treasury comprehensi Surplus reserves
Others reserves profits equity
shares bond shares ve income
1. Ending balance of last year 4108219302.00 947858134.16 12852074188.80 -50371341.88 3681.16 1195116522.37 -2900010737.27 16152889749.34
Add: Change of accounting policies
Correction of errors for last period
Others
2. Beginning balance of current year 4108219302.00 947858134.16 12852074188.80 -50371341.88 3681.16 1195116522.37 -2900010737.27 16152889749.34
3. Changes in current year (“-” for decrease) 8855.00 -7939.13 -26931834.78 -43035854.74 5595.65 -5188686716.67 -5258647894.67
1) Total comprehensive income -43035854.74 -5188686716.67 -5231722571.41
2) Capital increase and decrease by shareholders 8855.00 -7939.13 -26931834.78 -26930918.91
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity instruments 8855.00 -7939.13 25840.89 26756.76
(3) Share-based payment attributable to shareholders' equity
(4) Others -26957675.67 -26957675.67
3) Profit distribution
(1) Appropriation of surplus reserves
(2) Profit distribution to shareholders
(3) Others
4) Transfers within shareholders' equity
(1) Capital reserves transferred into paid-in capital (or stock)
(2) Surplus reserves transferred into paid-in capital (or stock)
(3) Surplus reserves to recover loss
(4) Net changes of defined contribution plans transferred into
Retained Earnings
(5) Other comprehensive income transferred into retained earnings
(6) Others
5) Special reserves 5595.65 5595.65
(1) Provision of special reserves 57316980.35 57316980.35
(2) Use of special reserves 57311384.70 57311384.70
6) Others
4. Ending balance of current year 4108228157.00 947850195.03 12825142354.02 -93407196.62 9276.81 1195116522.37 -8088697453.94 10894241854.67
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 12Bengang Steel Plates Co. Ltd.Notes to the financial statements
Bengang Steel Plates Co. Ltd.Notes to the financial statements
(Expressed in Renminbi unless otherwise indicated)
1. Basic Information of the Company
(1) Company profile
Bengang Steel Plates Co. Ltd. (hereinafter referred to as “Bengang Steel Plates” or “theCompany”) as approved in Liao-Zheng (1997) No. 57 by Liaoning People’s Government on
27 March 1997 was incorporated as a joint stock limited company through public share offer
of domestic listed foreign currency denominated shares (B shares) in the People’s Republic
of China (the “PRC”) on 27 June 1997 by Benxi Steel and Iron (Group) Co. Ltd. (“BengangGroup”) through reorganization of operations assets and liabilities of its plants namely
Steel Smelting Plant Primary Rolling Plant and Continuous Hot Rolling Plant.As approved by China Securities Regulatory Commission (hereinafter referred to as “theCSRC”) the Company issued 400000000 B-shares at HKD 2.38 each in Shenzhen Stock
Exchange on 10 June 1997. On 3 November 1997 the Company issued another 120000000
A-shares (Renminbi common Shares) at RMB 5.40 each and listed in Shenzhen Stock
Exchange since 15 January 1998. The capital shares were totaled to 1136000000 shares.On 14 March 2006 according to the resolutions of the Shareholders’Meeting regarding share
equity relocation the Share Equity Relocation Scheme Response to Bengang Steel Plate Co.Ltd. about Share Equity Relocation issued by Liaoning Provincial Government State-owned
Asset Administrative Committee Bengang Group – the only holder of non-negotiable
state-owned legal person shares paid the consideration to the current shareholders to obtain
the current option for the 40800000 shares of the total 616000000 shares it was holding.Shareholding positions have been registered with China Securities Depository & Clearing
Corporation Ltd. Shenzhen Office. However the total amount of capital shares of Bengang
Steel Plates Co. Ltd. was not changed through the share equity relocation action.On July 6 2006 the Company received Document No. Zhengjian Gongsi Zi (2006) 126
issued by the China Securities Regulatory Commission (CSRC) on June 30 2006. This
document approved the issuance by the Company of 2 billion RMB-denominated ordinary
shares to Bengang Group for the purpose of acquiring relevant assets from Bengang Group.On the same day Bengang Group received circular Zheng-Jian-Gong-Si-Zi [2006] No. 127
Notes to the financial statements Page 1Bengang Steel Plates Co. Ltd.Notes to the financial statements
issued by China Securities Regulatory Committee and were exempted for the liability of
undertaking the purchase offer. The liability was caused by subscribing of the 2 billion new
shares and the total shareholding was thus increased to 2.5752 billion shares (accounting for
82.12% of the total capital shares of the Company). On 28 August 2006 as approved by
China Securities Depository & Clearing Corporation Ltd. Shenzhen Office the registration
and conditional placing procedures of the 2 billion new shares were completed. On 28
September 2006 the privately placed shares were approved by Shenzhen Stock Exchange to
be placed in the stock market. The placing price was RMB4.6733 per share.Approved by the China Securities Regulatory Commission [2017] No. 1476 Bengang Steel
Plate Co. Ltd. privately placed no more than 739371534 RMB ordinary shares (A shares) to
no more than 10 issuers. The non-public offering was completed on 9 February 2018 and
739371532 shares were actually issued. The placing price was RMB5.41 per share.
On August 20 2021 the State-owned Assets Supervision and Administration Commission of
the People's Government of Liaoning Province (hereinafter referred to as Liaoning SASAC)
and Ansteel Group Co. Ltd. (hereinafter referred to as Ansteel) signed the "Agreement on the
Gratuitous Transfer of State-owned Equity in Bengang Group Co. Ltd. between the
State-owned Assets Supervision and Administration Commission of the People's Government
of Liaoning Province and Ansteel Group Co. Ltd." According to the agreement Liaoning
SASAC will transfer its 51% equity in Bengang Group Co. Ltd. (hereinafter referred to as
Bengang Group) to Ansteel Group Co. Ltd. for free. After the completion of this free transfer
Ansteel became the controlling shareholder of Bengang Group and Ansteel indirectly hold
76.67% of the total share capital of Bengang Steel Plates.
As at 31 December 2025 the capital shares were totaled to 4108236253.00 shares.The Company’s uniform social credit code: 91210000242690243E.The Company’s registered address: 16th Renmin Road Pingshan District Benxi Liaoning
Province.The Company’s legal representative: Huang Zuowei.The parent company of Bengang Steel Plates Co. Ltd is Benxi Steel and Iron (Group) Co.Ltd. and the actual controller is Ansteel Group Co. Ltd..Bengang Steel Plates Co. Ltd. belongs to ferrous metal smelting and rolling processing
industry and is mainly involved in producing and trading of ferrous metal products.Notes to the financial statements Page 2Bengang Steel Plates Co. Ltd.Notes to the financial statements
The financial statements have been approved for reporting by the board of directors of the
Company on 2 April 2026.
2. Basis of preparation
(1) Basis of preparationThe financial statements have been prepared in accordance with “Accounting Standards forBusiness Enterprises – Basic Standard” and relevant specific standards application materialsinterpretations (together hereinafter referred to as “Accounting Standards for BusinessEnterprises”) issued by the Ministry of Finance and “Information Disclosure Rules forCompanies of securities for public issuance No. 15 – General Regulations for FinancialStatements” issued by the China Securities Regulatory Commission.
(2) Going concern
The financial statements have been prepared on a going concern basis.
3. Significant accounting policies and accounting estimates
The following disclosed content covers the specific accounting policies and accounting
estimates that are adopted by the Company based on the actual production and operation
characteristics. Please see Note (10) Financial instruments (12) Inventory (15) Fixed assets
(18) Intangible assets (24) Revenue under “3. Significant accounting policies andaccounting estimates” for details.
(1) Statement of compliance with China Accounting Standards for Business Enterprises
The financial statements present truly and completely the financial position operation results
and cash flows of the consolidated and parent company during the reporting period in
accordance with China Accounting Standards for Business Enterprises.
(2) Accounting year
The Accounting year is from 1 January to 31 December.
(3) Operating period
The operating period is twelve months.
(4) Functional currency
The Company’s functional currency is RMB.Notes to the financial statements Page 3Bengang Steel Plates Co. Ltd.Notes to the financial statements
(5) The accounting treatment for Business combination under/not under common control
Business combination under common control
The assets and liabilities that the Company acquired in a business combination shall be
measured on the basis of their carrying amount of acquiree’s assets liabilities (as well as the
goodwill arising from the business combination) in the consolidated financial statement of
the ultimate controller on the combining date. As for the balance between the carrying
amount of the net assets obtained by the Company and the carrying amount of the
consideration paid by it (or the total par value of the shares issued) capital reserve needs to
be adjusted. If the capital reserve is not sufficient any excess shall be adjusted against
retained earnings.Business combination not under common control
The Company shall on the acquisition date measure the assets given and liabilities incurred
or assumed by an enterprise for a business combination in light of their fair values and shall
record the balances between them and their carrying amounts into the profits and losses at the
current period. The Company shall recognize the positive balance between the combination
costs and the fair value of the identifiable net assets it obtains from the acquiree as goodwill.The Company shall treat the negative balance between the combination costs and the fair
value of the identifiable net assets it obtains from the acquiree into the profits and losses of
the current period. All identifiable assets liabilities and contingent liabilities of the acquiree
that meet the recognition criteria acquired in the merger are measured at fair value on the
acquisition date.Directly related expenses incurred for a business combination are recorded in the current
period's profit or loss when incurred; transaction costs of equity securities or debt securities
issued for a business combination are included in the initial recognition amount of the equity
securities or debt securities.
(6) Scope of consolidation and Consolidation of Financial Statements
1. Scope of consolidation
The scope of consolidation of consolidated financial statements is determined based on
control and the scope of consolidation includes the Company and all its subsidiaries. Control
means that the Company has power over the investee enjoys variable returns through
participation in the relevant activities of the investee and has the ability to use the power
over the investee to influence the amount of its returns.
2. Procedure of consolidation
Notes to the financial statements Page 4Bengang Steel Plates Co. Ltd.Notes to the financial statements
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
previously obtaining equity investment and the date the acquiree and acquirer are under
Notes to the financial statements Page 5Bengang Steel Plates Co. Ltd.Notes to the financial statements
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.
(7) Classification of joint venture arrangements and accounting treatment
Joint venture arrangements are divided into joint operations and joint ventures.Notes to the financial statements Page 6Bengang Steel Plates Co. Ltd.Notes to the financial statements
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
The term “cash” refers to the cash on hand and the unrestricted deposit. And the term “cashequivalents” refers to short-term (maturing within three months from acquisition) and highly
liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of change in value.
(9) Foreign currency transaction and translation of foreign currency financial statements
1. Foreign currency transactions
Foreign currency transactions are translated into RMB at the current rate at the day of
transactions.The foreign currency monetary items shall be translated at the spot exchange rate on the
balance sheet date. The balance of exchange arising from the difference between the spot
Notes to the financial statements Page 7Bengang Steel Plates Co. Ltd.Notes to the financial statements
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.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
Notes to the financial statements Page 8Bengang Steel Plates Co. Ltd.Notes to the financial statements
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.
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
Notes to the financial statements Page 9Bengang Steel Plates Co. Ltd.Notes to the financial statements
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.
(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.Notes to the financial statements Page 10Bengang Steel Plates Co. Ltd.Notes to the financial statements
(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 recognised in profit or loss. Changes in fair
value are included in profit or loss.When the financial liabilities are derecognized the difference between the fair value and the.initially recorded amount is recognized as investment income and the gains and losses from
changes in fair value are adjusted.
(6) Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost include short-term borrowings notes.payables accounts payables other payables long-term borrowings bonds payables
long-term payables. At initial recognition the Company shall measure a financial liability at
its fair value plus. transaction costs that are directly attributable to the acquisition or issue of
the financial asset.Interests calculated by using the effective interest method during the holding period shall be
recognized in profit or loss.When the financial liabilities are derecognized the difference between the price obtained and.the carrying value shall be recognised in profit and loss.
3. Termination of recognition of financial assets and financial assets transfer
Notes to the financial statements Page 11Bengang Steel Plates Co. Ltd.Notes to the financial statements
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
(2) The sum of consideration received from the transfer and the accumulative amount of
the changes of the fair value originally recorded in the owners' equities (in the event that the
financial asset involved in the transfer is a financial asset Available-for-sale).If the transfer of partial financial asset satisfies the conditions to derecognize the entire
book value of the transferred financial asset shall between the portion whose recognition
has been stopped and the portion whose recognition has not been stopped (under such
circumstance the service asset retained shall be deemed as a portion of financial asset
whose recognition has not been stopped) be apportioned according to their respective
relative fair value and the difference between the amounts of the following 2 items shall be
included into the profits and losses of the current period :
(1) The book value of the portion whose recognition has been stopped; and
Notes to the financial statements Page 12Bengang Steel Plates Co. Ltd.Notes to the financial statements
(2) The sum of consideration of the portion whose recognition has been stopped and the
portion of the accumulative amount of the changes in the fair value originally recorded in
the owner's equities which is corresponding to the portion whose recognition has been
stopped (in the event that the financial asset involved in the transfer is a financial asset
Available-for-sale).If the transfer of financial assets does not satisfy the conditions to stop the recognition it
shall continue to be recognized as financial assets and the consideration received shall be
recognized as financial liabilities.
4. Termination of recognition of financial liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in part may
the recognition of the financial liability be terminated in all or partly. Where the Company
(debtor) enters into an agreement with a creditor so as to substitute the existing financial
liabilities by way of any new financial liability and if the contractual stipulation regarding
the new financial liability is substantially different from that regarding the existing financial
liability it shall terminate the recognition of the existing financial liability and shall at the
same time recognize the new financial liability.Where the Company makes substantial revisions to part or all of the contractual stipulations
of the existing financial liability it shall terminated the recognition of the existing financial
liability or part of it and at the same time recognize the financial liability after revising the
contractual stipulations as a new financial liability.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
Notes to the financial statements Page 13Bengang Steel Plates Co. Ltd.Notes to the financial statements
recognition has already been terminated. The gap between the carrying amount which is
distributed to the part whose recognition has terminated and the considerations it has paid
(including the noncash assets it has transferred out and the new financial liabilities it has
assumed) shall be recorded into the profits and losses of the current period.
5. Determination of the fair value of the financial assets (liabilities)
If active markets for the financial instruments exist the fair value shall be measured by
quoted prices in the active markets. If active markets for the financial instruments do not
exist valuation techniques shall be applied for the measurement. The Company uses
valuation techniques appropriate in the circumstances and for which sufficient data are
available to measure fair value. The Company chooses relevant observable inputs for
identical or similar assets or liabilities. Only when relevant observable inputs are
unavailable or should the Company use unobservable inputs for the asset or liability.
6. Impairment provision of the financial assets
The Company recognize the expected credit loss on financial assets measured at amortized
cost financial assets measured at fair value through other comprehensive income (debt
instruments) financial guarantee contract and so on on the individual or portfolio basis.The Company considers all reasonable and relevant information including past events
current conditions and forecasts of future economic conditions and uses the risk of default
as the weight to calculate the probability-weighted amount of present value of difference
between the cash flow receivable from the contract and the cash flow expected to be received
to confirm the expected credit loss.For account receivables and contract assets recognized according to Accounting Standards
for Business Enterprises No. 14 Revenue whether a significant financing component is
contained or not the Company shall always measure the loss allowance at an amount equal to
lifetime expected credit losses.For lease receivables recognized according to Accounting Standards for Business Enterprises
No. 21 Lease the Company shall always measure the loss allowance at an amount equal to
lifetime expected credit losses.For other financial instruments the Company shall assess changes in the credit risk of the
relevant financial instruments since initial recognition at each balance sheet date.Notes to the financial statements Page 14Bengang Steel Plates Co. Ltd.Notes to the financial statements
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) Recognition criteria and measurement methods for expected credit losses on receivables
1. Receivables with expected credit losses measured on a portfolio basis
Portfolios Basis for determiningportfolios Measurement methods for ECL
Drawing upon historical credit loss experience
and incorporating current conditions as well as
Accounts receivable – Aging forecasts of future economic conditions aaging portfolio matrix correlating accounts receivable aging
with expected credit loss rates is prepared to
calculate expected credit losses.Notes to the financial statements Page 15Bengang Steel Plates Co. Ltd.Notes to the financial statements
Portfolios Basis for determiningportfolios Measurement methods for ECL
Expected credit losses are calculated by
Related-Party Transactions referencing historical credit loss
Accounts Receivable — within the Scope of the experience—combined with current conditions
Risk-Free Portfolio Company’s Consolidated and forecasts of future economic
Financial Statements conditions—using default risk exposure andexpected credit loss rates over the next 12
months or the entire remaining life.Drawing upon historical credit loss experience
and incorporating current conditions as well as
Other receivables – aging Aging forecasts of future economic conditions aportfolio matrix correlating accounts receivable aging
with expected credit loss rates is prepared to
calculate expected credit losses.Items within the scope of
the Company's Expected credit losses are calculated by
consolidated financial referencing historical credit loss
Other Receivables — statements—including experience—combined with current conditions
Risk-Free Portfolio inter-company balances and forecasts of future economic
with related parties petty conditions—using default risk exposure and
cash and suspense expected credit loss rates over the next 12
accounts months or the entire remaining life.
2. Provision matrix of aging and expected credit loss rates for aging portfolios
Aging Accounts receivable ECL(%) Other receivables ECL(%)
Within 1 year (inclusive
same hereafter) 1 1
1-2 years 10 10
2-3 years 20 20
3-4 years 100 100
4-5 years 100 100
Over 5 years 100 100
3. Criteria for Identifying Receivables for Which Expected Credit Losses Are Recognized
on an Individual Basis
For receivables where the credit risk differs significantly from the credit risk of the
portfolio the Company recognizes expected credit losses on an individual basis.
(12) Inventory
1. Inventory classification and costs of inventory
Inventories include material in transit raw material turnover materials finished goods work
in process issue commodity materials for consigned processing etc.Inventory is initially measured at cost. Inventory cost includes purchase cost processing cost
and other expenditures incurred to bring inventory to its current location and state.
2. Valuation method for inventory dispatched
The weighted average method is used to confirm the actual cost of the inventories dispatched.Notes to the financial statements Page 16Bengang Steel Plates Co. Ltd.Notes to the financial statements
3. Inventory system
The Company uses perpetual inventory system.
4. Amortization of low-valued consumables and packing materials
(1) Low-valued consumables shall be amortized in full amount on issuance.
(2) Packing materials shall be amortized in full amount on issuance.
5. The basis for confirming the net realizable value of inventories and the methods to
make provision for the inventory impairment loss
On the balance sheet date inventories shall be measured at the lower of cost and net
realizable value. When the cost of inventories is higher than its net realizable value provision
for inventory impairment loss shall be made. The net realizable value refers to the amount of
the estimated selling price of the inventory minus the estimated costs that will occur at the
time of completion estimated selling expenses and relevant taxes in daily activities.The net realizable value of inventories (finished goods stock commodity material etc.) held
for direct selling in the daily business activity shall be calculated by deducting the estimated
sale expense and relevant taxes from the estimated sale price of inventories; The net
realizable value of inventories for further processing in the daily business activity shall be
calculated by deducting the estimated cost of completion estimated sale expense and relevant
taxes from the estimated sale price of inventories; The net realizable value of inventories held
for the execution of sales contracts or labor contracts shall be calculated on the ground of the
contract price. If the Company holds more inventories than the quantities subscribed in the
sales contract the net realizable value of the excessive part of the inventories shall be
calculated on the ground of the general sales price.After the inventory impairment is withdrawn if the factors that previously affected the
write-down of the inventory value have disappeared causing the net realizable value of the
inventory to be higher than its book value it shall be reversed within the amount of the
inventory impairment that has been withdrawn and the reverted amount shall be included in
the current profit and loss.
(13) Contract asset
1. Recognition methods and criteria of contract assets
When either party to a contract has performed the Company shall present the contract in
the statement of financial position as a contract asset or a contract liability depending on
Notes to the financial statements Page 17Bengang Steel Plates Co. Ltd.Notes to the financial statements
the relationship between the Company’s performance and the customer’s payment. If the
Company have the rights to receive consideration (the right is conditioned on factors other
than the passage of time) by transferring goods or services to a customer the entity shall
present the contract as a contract asset. Contract assets and contract liabilities under the
same contract are disclosed in net amount. An entity shall present any unconditional rights
to consideration (only the passage of time is required) separately as a receivable.
2. Expected credit loss of contract assets
For the accounting policy of the expected credit loss of contract assets please refer to Note
(10) 6. Impairment provision of the financial assets under “3. Significant accountingpolicies and accounting estimates”
(14) Long-term equity investment
1. Criteria of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement which exists
only when decisions about the relevant activities require the unanimous consent of the parties
sharing control. If the Company and other joint venture have joint control of the investee and
have rights to the net assets of the investee the investee is a joint venture of the Company.Significant influence is the power to participate in the financial and operating policy
decisions of the investee but not control or join control of those policies. If the Company
could exert significant influence over the investee the investee is the associate of the
Company.
2. The initial cost of long-term equity investment from business acquisition
(1) Long-term equity investment from business acquisition
For a business combination under common control the initial investment cost of the
long-term equity investment shall be the absorbing party’s share of the carrying amount of
the owner’s equity of the party being absorbed in the consolidated financial statements of the
ultimate controlling party at combination date. The difference between the initial investment
cost and the carrying amount of the previously held equity investment together with the
additional investment cost for new shares at combination date shall be adjusted to the capital
reserve. If the balance of capital reserve is not sufficient any excess shall be adjusted to
retained earnings. When an investor becomes capable of exercising control over an investee
due to additional investment or other reasons the difference between the initial investment
cost recognized in accordance with the above principles and the sum of the book value of the
Notes to the financial statements Page 18Bengang Steel Plates Co. Ltd.Notes to the financial statements
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 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
Notes to the financial statements Page 19Bengang Steel Plates Co. Ltd.Notes to the financial statements
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.
(15) Fixed assets
1. Recognition of Fixed assets
The term "fixed assets" refers to the tangible assets held for the sake of producing
commodities rendering labor service renting or business management and of which useful
life is in excess of one fiscal year. No fixed asset may be recognized unless it simultaneously
meets the conditions as follows:
(1) The economic benefits pertinent to the fixed asset are likely to flow into the enterprise;
and
Notes to the financial statements Page 20Bengang Steel Plates Co. Ltd.Notes to the financial statements
(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
3. Disposal of fixed assets
When a fixed asset is disposed or it is expected that no economic benefits will be generated
through use or disposal the recognition of fixed asset shall be de terminated. The amount of
disposal income of fixed assets raising from sell transfer scrapping or damage shall be
included in the current profit and loss after deducting its book value and related taxes.
(16) Construction in progress
Construction in progress is measured at the actual cost incurred. The actual cost includes
construction costs installation costs borrowing costs that meet the capitalization conditions
and other necessary expenditures incurred before the construction in progress reaches its
intended use status. Construction in progress is transferred to fixed asset when it has reached
Notes to the financial statements Page 21Bengang Steel Plates Co. Ltd.Notes to the financial statements
its working condition for its intended use and depreciation will be accrued from the next
month.
(17) Borrowing costs
1. Principle of the recognition of capitalized borrowing costs
Where the borrowing costs incurred to an enterprise can be directly attributable to the
acquisition and construction or production of assets eligible for capitalization it shall be
capitalized and recorded into the costs of relevant assets. Other borrowing costs shall be
recognized as expenses on the basis of the actual amount incurred and shall be recorded into
the current profits and losses.Assets eligible for capitalization refer to the fixed assets investment property inventories and
other assets of which the acquisition and construction or production may take quite a long
time to get ready for its intended use or for sale.
2. The capitalization period of borrowing costs
The capitalization period shall refer to the period from the commencement to the cessation of
capitalization of the borrowing costs excluding the period of suspension of capitalization of
the borrowing costs.The borrowing costs shall not be capitalized unless they simultaneously meet the following
requirements:
(1) The asset disbursements have already incurred which shall include cash transferred
non-cash assets or interest bearing debts paid for the acquisition and construction or
production activities for preparing assets eligible for capitalization;
(2) The borrowing costs has already incurred; and
(3) The acquisition and construction or production activities which are necessary to prepare
the asset for its intended use or sale have already started.When the qualified asset under acquisition and construction or production is ready for the
intended use or sale the capitalization of the borrowing costs shall be ceased.
3. The suspension of capitalization of borrowing costs
Where the acquisition and construction or production of a qualified asset is interrupted
abnormally and the interruption period lasts for more than 3 months the capitalization of the
borrowing costs shall be suspended. If the interruption is a necessary step for making the
qualified asset under acquisition and construction or production ready for the intended use or
Notes to the financial statements Page 22Bengang Steel Plates Co. Ltd.Notes to the financial statements
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.
(18) Intangible Assets
1. Measurement of Intangible Assets
(1) Initial measurement is based on cost upon acquisition
The cost of an intangible asset on acquisition include the purchase price relevant taxes and
other necessary disbursements which may be directly attributable to bringing the intangible
asset to the conditions for the expected purpose.
(2) Subsequent Measurement
The Company shall analyze and judge the beneficial period of intangible assets upon
acquisition.Notes to the financial statements Page 23Bengang Steel Plates Co. Ltd.Notes to the financial statements
Intangible assets with finite beneficial period shall be amortized under the straight-line
method during the period when the intangible asset can bring economic benefits to the
enterprise. If it is unable to estimate the beneficial period of the intangible asset it shall be
regarded as an intangible asset with uncertain service life and shall not be amortized.
2. Estimated useful lives of intangible assets with limited useful lives
Amortization Residual value
Item Estimated useful life Criteria
method (%)
Straight line Land use right
Land use right 50 years
method certificate
Straight line Estimated useful
Software 10 years
method life
3. Classification criteria for internal research phase and development phase
The expenditures for its internal research and development projects of an enterprise shall be
classified into research expenditures and development expenditures.Research phase refers to the phase of creative and planned investigation to acquire and study
to acquire and understand new scientific or technological knowledge.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.Notes to the financial statements Page 24Bengang Steel Plates Co. Ltd.Notes to the financial statements
(4) The company has sufficient technical financial and other resources to complete the
development of the intangible asset and is able to use or sell the intangible asset.
(5) The expenditure attributable to the development phase of the intangible asset can be
measured reliably.If it is impossible to distinguish between expenditures in the research phase and expenditures
in the development phase all research and development expenditures incurred shall be
included in the current period's profit and loss.
(19) Impairment of long-term assets
For long-term assets such as long-term equity investments investment property under the
cost model fixed assets construction in progress right-of-use assets intangible assets with
limited useful lives and oil gas assets etc. the Company shall perform impairment tests at the
period end if there is clear indication of impairment. If the recoverable amounts of long-term
assets are less than their carrying amounts the carrying amounts of the assets shall be written
down to their recoverable amounts. The write-downs are recognized as impairment losses and
charged to current profit and loss. The recoverable amounts of long-term assets are the higher
of their fair values less costs to sell and the present values of the future cash flows expected
to be derived from the assets. The Company shall estimate its recoverable amount on an
individual basis. Where it is difficult to do so it shall determine the recoverable amount ofthe assets on the basis of the asset group to which the asset belongs. The term "assets group”
refers to a minimum combination of assets by which the cash flows could be generated
independently
The goodwill intangible assets with uncertain useful life and intangible assets not meeting
the expected condition for use shall be subject to an impairment test at least at the end of each
year.When the Company makes an impairment test of assets it shall as of the purchasing day
apportion the carrying value of the business reputation formed by merger of enterprises to the
relevant asset groups by a reasonable method. Where it is difficult to do so it shall be
apportioned to the relevant combinations of asset groups. A related group of assets or
combination of asset groups is an asset group or combination of asset groups that can benefit
from the synergy effect of a business combination.When making an impairment test on the relevant asset groups or combination of asset groups
containing business reputation if any evidence shows that the impairment of asset groups or
combinations of asset groups is possible the Company shall first make an impairment test on
Notes to the financial statements Page 25Bengang Steel Plates Co. Ltd.Notes to the financial statements
the asset groups or combinations of asset groups not containing business reputation calculate
the recoverable amount compare it with the relevant carrying value and recognize the
corresponding impairment loss. Then the Company shall make an impairment test of the asset
groups or combinations of asset groups containing business reputation and compare the
carrying value of these asset groups or combinations of asset groups (including the carrying
value of the business reputation apportioned thereto) with the recoverable amount. Where the
recoverable amount of the relevant assets or combinations of the asset groups is lower than
the carrying value thereof it shall recognize the impairment loss of the business reputation.Impairment losses on long-term assets shall not be reversed in subsequent accounting periods
once recognized.
(20) Long-term deferred expense
The long-term deferred expense refers to the expenses incurred but shall be borne by current
and subsequent accounting period which is more than one year.
(21) Contract liability
When either party to a contract has performed the Company shall present the contract in the
statement of financial position as a contract asset or a contract liability depending on the
relationship between the Company’s performance and the customer’s payment. If a customer
pays consideration or the Company has a right to an amount of consideration before the
Company transfers a good or service to the customer the Company shall present the contract
as a contract liability. Contract assets and contract liabilities under the same contract are
disclosed in net amount.
(22) Employee benefits
1. Accounting treatment for short employee benefit
The Company shall recognise in the accounting period in which an employee provides
service actually occurred short-term employee benefits as a liability with a corresponding
charge to the profit or loss or cost of an asset for the current period.Payments made by an enterprise of social security contributions for employees payments of
housing funds and union running costs employee education costs provided in accordance
with relevant requirements shall in the accounting period in which employees provide
services be calculated according to prescribed bases and percentages in determining the
amount of employee benefits.Notes to the financial statements Page 26Bengang Steel Plates Co. Ltd.Notes to the financial statements
The employee welfare expenses incurred by the company are included in the current profit
and loss or related asset costs based on the actual amount when they actually occur. Among
them non-monetary benefits are measured at fair value.
2. Accounting treatment of post-employment benefits
(1) Defined contribution plan
The Company shall recognize in the accounting period in which an employee provides
service pension fund and unemployment fund for employees as a liability according to
the local government regulations. The amount shall be calculated according to local
prescribed bases and percentages in determining the amount of employee benefits with a
corresponding charge to the profit or loss or cost of an asset for the current period. In
addition the Company also participates in the enterprise annuity plan/supplementary
pension insurance fund approved by relevant state departments. The Company pays a
certain proportion of the total salary of employees to the annuity plan/local social
insurance agency and the corresponding expenses are included in the current profit and
loss or related asset cost.
(2) Defined benefit plan
In accordance with the formula determined by the Projected Unit Credit Method the
Company attributes the benefit obligations arising from defined benefit plans to the
periods during which employees render services and records them in current profit or
loss or as part of the cost of relevant assets.The deficit or surplus resulting from the present value of the defined benefit plan
obligations less the fair value of the defined benefit plan assets is recognized as a net
defined benefit liability or net defined benefit asset. Where a defined benefit plan has a
surplus the Company measures the net defined benefit asset at the lower of the plan
surplus and the asset ceiling.All defined benefit obligations—including those expected to be settled within twelve
months after the end of the reporting period in which employees render the related
service—are discounted using market yields at the balance sheet date on government
bonds or high-quality corporate bonds in an active market that match the currency and
term of the defined benefit obligations.Service costs arising from defined benefit plans as well as the net interest on the net
defined benefit liability or asset are recognized in current profit or loss or included in the
cost of relevant assets. Changes arising from the remeasurement of the net defined
benefit liability or asset are recognized in other comprehensive income and are not
Notes to the financial statements Page 27Bengang Steel Plates Co. Ltd.Notes to the financial statements
subsequently reclassified to profit or loss in future accounting periods; upon the
termination of the defined benefit plan the amounts originally recognized in other
comprehensive income are transferred in full within equity to retained earnings.Upon the settlement of a defined benefit plan a settlement gain or loss is recognized
based on the difference between the present value of the defined benefit obligation and
the settlement price both determined as of the settlement date.
3. Accounting treatment of termination benefits
The Company shall recognize an employee benefits liability for termination benefits with a
corresponding charge to the profit or loss for the current period at the earlier of the following
dates: when the Company cannot unilaterally withdraw the offer of termination benefits
because of an employment termination plan or a curtailment proposal; or when the Company
recognizes costs or expenses related to a restructuring that involves the payment of
termination benefits.
(23) Estimated liabilities
The obligation pertinent to a contingency shall be recognized as an estimated liability when
the following conditions are satisfied simultaneously:
(1) That obligation is a current obligation of the enterprise;
(2) It is likely to cause any economic benefit to flow out of the enterprise as a result of
performance of the obligation; and
(3) The amount of the obligation can be measured in a reliable way.
The estimated debts shall be initially measured in accordance with the best estimate of the
necessary expenses for the performance of the current obligation.To determine the best estimate an enterprise shall take into full consideration of the risks
uncertainty time value of money and other factors pertinent to the Contingencies. If the time
value of money is of great significance the best estimate shall be determined after
discounting the relevant future outflow of cash.When all or some of the expenses necessary for the liquidation of an estimated debts of an
enterprise is expected to be compensated by a third party the compensation shall be
separately recognized as an asset only when it is virtually certain that the reimbursement will
be obtained. The amount recognized for the reimbursement shall not exceed the book value
of the estimated debts.Notes to the financial statements Page 28Bengang Steel Plates Co. Ltd.Notes to the financial statements
The company reviews the book value of the estimated liabilities on the balance sheet date. If
there is conclusive evidence that the book value does not reflect the current best estimate the
book value will be adjusted according to the current best estimate.
(24) Revenue
(1) The general principle of revenue recognition and measurement
The company shall recognise revenue when (or as) the company satisfies a performance
obligation when (or as) the customer obtains control of a promised good or service. Control
of a promised good or service refers to the ability to direct the use of and obtain substantially
all of the remaining benefits from it.If the contract contains two or more performance obligations the company shall allocate the
transaction price to each individual performance obligation based on the relative proportion
of the stand-alone selling price of the goods or services promised by each individual
performance obligation on the date of the contract. The company measures revenue based on
the transaction price allocated to each individual performance obligation.The transaction price is the amount of consideration to which the company expects to be
entitled in exchange for transferring promised goods or services to a customer excluding
amounts collected on behalf of third parties or amounts expected to be returned to customers.The company shall consider the terms of the contract and its customary business practices to
determine the transaction price. When determining the transaction price the company shall
consider the effects of all of the following: variable consideration the existence of a
significant financing component in the contract non-cash consideration and consideration
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.Notes to the financial statements Page 29Bengang Steel Plates Co. Ltd.Notes to the financial statements
(a) the customer simultaneously receives and consumes the benefits provided by the
company’s performance as the company performs;
(b) the company’s performance creates or enhances an asset that the customer controls as the
asset is created or enhanced; or
(c) the company’s performance does not create an asset with an alternative use to the
company and the company has an enforceable right to payment for performance completed to
date.The company shall recognise revenue over time by measuring the progress towards complete
satisfaction of that performance obligation except where the performance progress cannot be
reasonably determined. The company considers the nature of the goods or services and
adopts the output method or the input method to determine the progress of performance.Where the performance progress cannot be reasonable determined but the company expects
to recover the costs incurred in satisfying the performance obligation the company shall
recognise revenue only to the extent of the costs incurred until such time that it can
reasonably measure the outcome of the performance obligation.For performance obligations satisfied at a certain point in time the company shall recognises
revenue at the point when the customer obtains control of the relevant goods or services. To
determine the point in time at which a customer obtains control of a promised goods or
services the company shall consider requirements as follows:
(a) The company has a present right to payment for the promised goods or services and the
customer is presently obliged to pay for that;
(b) The company has transferred the legal title of the goods to the customer that is the
customer has the legal title to the goods;
(c) The company has transferred physical possession of the goods to the customer that is the
customer has taken possession of the goods;
(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
Notes to the financial statements Page 30Bengang Steel Plates Co. Ltd.Notes to the financial statements
Commodity sales contracts between companies and customers usually only include
performance obligations for the transfer of steel and other commodities. This type of
performance obligation is a performance obligation performed at a certain point in time. The
Company recognizes revenue when the customer obtains control of the relevant goods or
services. When judging whether the customer has obtained control of goods or services the
company considers the following signs:
The company obtains the current right of collection of receivables the legal ownership of the
goods is transferred to the customer the physical assets of the goods are transferred to the
customer the company transfers the main risks and rewards of the ownership of the goods to
the customer and the customer has accepted the goods.
(25) Contract costs
Contract costs include costs to fulfill a contract and incremental costs of obtaining a contract.If the costs incurred in fulfilling a contract with a customer are not within the scope of
another Standard for example Inventories Property Plant and Equipment or Intangible
Assets the company shall recognise an asset from the costs incurred to fulfil a contract only
if those costs meet all of the following criteria:
(a) the costs relate directly to a contract or to an expected contract;
(b) the costs generate or enhance resources of the Company that will be used in satisfying
performance obligations in the future; and
(c) the costs are expected to be recovered.The company shall recognise as an asset the incremental costs of obtaining a contract with a
customer if the company expects to recover those costs.An asset recognised in accordance with contract costs shall be amortised in consistent with
the transfer to the customer of the goods or services to which the asset relates. The company
may recognise the incremental costs of obtaining a contract as an expense when incurred if
the amortisation period of the asset is one year or less.The company shall recognise an impairment loss in profit or loss to the extent that the
carrying amount of an asset related to contract assets exceeds:
(a) the remaining amount of consideration that the company expects to receive in exchange
for the goods or services to which the asset relates; less
(b) the costs that relate directly to providing those goods or services and that have not been
recognised as expenses.Notes to the financial statements Page 31Bengang Steel Plates Co. Ltd.Notes to the financial statements
The company shall recognise in profit or loss a reversal of some or all of an impairment loss
previously recognised when the impairment conditions no longer exist or have improved. The
increased carrying amount of the asset shall not exceed the carrying amount that if no
impairment loss had been recognised previously.
(26) Government Subsidies
1. Types
A government subsidy means the monetary or non-monetary assets obtained free of charge
by the Company from the government. Government subsidies consist of the government
subsidies pertinent to assets and government subsidies pertinent to income.Government subsidies related to assets are government subsidies whose primary
condition is that an entity qualifying for them should purchase construct or otherwise
acquire long-term assets. The government subsidies related to incomes refers to
government subsidies other than those related to assets.
2. Recognition
Government subsidies are recognized when the Company is able to meet the conditions
attached to them and is able to receive them.
3. Accounting treatment
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
Notes to the financial statements Page 32Bengang Steel Plates Co. Ltd.Notes to the financial statements
current profit and loss (Subsidies related to daily activities should be recorded in Other
Income. Subsidies unrelated to daily activities should be recorded in Non-operating
Income) or deduct relevant cost or loss.The policy discount loans obtained by the company are divided into the following two
situations and are separately accounted for:
(a) The government allocates discounted funds to the loan bank and the loan bank
provides loans to the company at a policy preferential interest rate. The preferential
interest rate is used to calculate the relevant borrowing costs.(b) If the government directly allocates the discounted funds to the company the
company will offset the relevant borrowing costs with the corresponding discounts
directly accounted for the current profit or loss or recognized as deferred income.
(27) Deferred tax assets and deferred tax liabilities
Income tax includes current income tax and deferred income tax. Except for income tax
arising from business combinations and transactions or events directly recorded in owners'
equity (including other comprehensive income) the Company records current income tax
and deferred income tax in current profit or loss.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.Notes to the financial statements Page 33Bengang Steel Plates Co. Ltd.Notes to the financial statements
Exceptions when deferred tax assets and deferred tax liabilities are not recognized include:
- Initial recognition of goodwill;
- A transaction or event that is neither a business combination nor affects accounting profit
and taxable income (or deductible loss) when it occurs and the assets and liabilities
initially recognized do not result in equal taxable temporary differences and deductible
temporary differences.For taxable temporary differences related to investments in subsidiaries associates and joint
ventures deferred income tax liabilities are recognized unless the company can control the
timing of the reversal of the temporary differences and the temporary differences are likely
not to be transferred back in the foreseeable future. For deductible temporary differences
related to investments in subsidiaries associates and joint ventures when the temporary
differences are likely to be reversed in the foreseeable future and are likely to be used to
deduct the taxable income of deductible temporary differences in the future income tax
assets are recognized.At the balance sheet date deferred income tax assets and deferred income tax liabilities are
measured at the applicable tax rate during the period when the relevant assets are expected
to be recovered or the relevant liabilities are expected to be recovered in accordance with
the provisions of the tax law.At the balance sheet date the company reviews the book value of deferred income tax assets.If it is probable that sufficient taxable income cannot be obtained in the future to offset the
benefits of deferred income tax assets the book value of the deferred income tax assets shall
be written down. When it is possible to obtain sufficient taxable income the reduced
amount shall be reversed.When the Company has the statutory right to offset and intend to offset or obtain assets and
pay off liabilities at the same time the current income tax assets and current income tax
liabilities are presented at the net amount after offsetting.An entity shall offset deferred tax assets and deferred tax liabilities if and only if: (a) the
entity has a legally enforceable right to set off current tax assets against current tax
liabilities; and (b) deferred income tax assets and deferred income tax liabilities are related
to income taxes levied by the same tax collection and administration department on the
same taxpayer or to different taxpayers but in each future period of significant deferred
income tax assets and liabilities reversal the taxpayers involved intend to settle the current
Notes to the financial statements Page 34Bengang Steel Plates Co. Ltd.Notes to the financial statements
income tax assets and liabilities on a net basis or to acquire assets and settle liabilities at the
same time.
(28) Leases
Lease refers to a contract in which the lessor transfers the right to use the asset to the lessee
within a certain period of time to obtain consideration.On the starting date of the contract the company assesses whether the contract is a lease or
contains a lease. If the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration the contract is or contains a lease.For a contract that contains a lease component and one or more additional lease or non-lease
components a lease shall allocate the consideration in the contract to each lease component
on the basis of the relative stand-alone price of the lease component and the aggregate
stand-alone price of the non-lease components.
1. The company as the lessee
(1) Right-of-use assets
On the start date of the lease term the company recognizes the right-of-use asset for leases
other than short-term leases and low-value asset leases. Right-of-use assets are initially
measured at cost.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
Notes to the financial statements Page 35Bengang Steel Plates Co. Ltd.Notes to the financial statements
the remaining useful life of the leased asset .The company determines whether the right-of-use asset has been impaired in accordance with
the principles described in "3. (19) Long-term asset impairment" in this note and conducts
accounting treatment for the identified impairment loss.
(2) Lease liabilities
At the beginning of the lease term the company recognizes lease liabilities for leases other
than short-term leases and leases of low-value assets. Lease liabilities are initially measured
based on the present value of the payments that are not paid at that date. Lease payments
include:
1) Fixed payment (including in-substance fixed payment) less any lease incentives
receivable;
2) Variable lease payments that depend on an index or a ratio;
3) Amounts expected to be payable by the lease under residual value guarantees;
4) The exercise price of the purchase option if the lease is reasonably certain to exercise that
option;
5) Payments of penalties for terminating the lease if the lease term reflects the lessee
exercising an option to terminate the lease;
The company uses the interest rate implicit in the lease as the discount rate but if the interest
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;
Notes to the financial statements Page 36Bengang Steel Plates Co. Ltd.Notes to the financial statements
* When the actual fixed payment changes the expected payable amount of the guarantee
residual value changes or the index or ratio used to determine the lease payment changes the
company calculates the present value based on the changed lease payment and the original
discount rate to remeasure the lease liability. However if changes in lease payments originate
from changes in floating interest rates the revised discount rate is used to calculate the
present value.
(3) Short-term leases and low-value asset leases
The company chooses not to recognize right-of-use assets and lease liabilities for short-term
leases and low-value asset leases and calculates the relevant lease payments in the current
profit and loss or related asset costs on a straight-line basis during each period of the lease
term. Short-term lease refers to a lease that does not include purchase options for a lease
period not exceeding 12 months at the beginning of the lease period. Low-value asset leasing
refers to a lease with a lower value when a single leased asset is a new asset. If the company
subleases or expects to sublease the leased assets the original lease is not a low-value asset
lease.
(4) Lease modifications
The lease shall account for a lease modification as a separate lease if both:
The modification increases the scope of the lease by adding the right to use one or
more underlying assets; and
the consideration for the lease increases by an amount commensurate with the
stand-alone price for the increase in scope and any appropriate adjustment to that
stand-alone price to reflect the circumstances of the particular contract.For a lease modification that is not accounted for as a separate lease at the effective date of
the lease modification a lessee shall allocate the consideration in the modified contract
determine the lease term of the modified lease and remeasure the lease liabilities by
discounting the revised lease payments using a revised discount rate.For a lease modification that is not accounted for as a separate lease the lessee shall account
for the remeasurement of the lease liabilities by decreasing the carrying amount of the
right-of-use assets to reflect the partial or full termination of the lease for lease modifications
that decrease the scope of the lease. The lessee shall recognize in profit or loss any gain or
Notes to the financial statements Page 37Bengang Steel Plates Co. Ltd.Notes to the financial statements
loss relating to the partial or full termination of the lease; or by making a corresponding
adjustment to the right-of-asset for all other lease modifications.
2. The company as the lessor
On the commencement date of the lease the company divides the lease into finance lease and
operating lease. Finance lease refers to a lease in which almost all the risks and rewards
related to the ownership of the leased asset are transferred regardless of whether the
ownership is ultimately transferred. Operating leases refer to leases other than financial
leases. When the company acts as a sublease lessor it classifies subleases based on the
right-of-use assets generated from the original lease.
(1) Accounting treatment of operating leases
The lease receipts of operating leases are recognized as rental income in each period of the
lease term according to the straight-line method. The company capitalizes the initial direct
costs incurred related to operating leases and allocates them to the current profit and loss on
the same basis as the recognition of rental income during the lease term. Variable lease
payments that are not included in the lease receipts are included in the current profit and loss
when they actually occur.
(2) Accounting treatment of finance leasing
On the start date of the lease the company recognizes the finance lease receivables for the
finance lease and terminates the recognition of the finance lease assets. When the company
initially measures the finance lease receivables the net lease investment is taken as the entry
value of the financial lease receivables. The net lease investment is the sum of the
unguaranteed residual value and the present value of the lease payment not yet received at the
beginning of the lease term discounted at the interest rate implicit in the lease.The company calculates and recognizes the interest income for each period of the lease term
based on a fixed periodic interest rate. The derecognition and impairment of finance lease
receivables shall be accounted for in accordance with "3. (10) Financial Instruments" in this
Note.Variable lease payments that are not included in the measurement of the net lease investment
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;
Notes to the financial statements Page 38Bengang Steel Plates Co. Ltd.Notes to the financial statements
* The consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope and any appropriate adjustments to that stand-alone price to
reflect the circumstances of the particular contract.For a modification to a finance lease that is not accounted for as a separate lease a lessor
shall account for the modification as follows:
* If the lease would have been classified as an operating lease had the modification been in
effect at the inception date the lessor shall account for the lease modification as a new lease
from the effective date of the modification; and measure the carrying amount of the
underlying assets as the net investment in the lease immediately before the effective date of
the lease modification.* If the change takes effect on the lease start date the lease will be classified as a financial
lease and the company will perform accounting treatment in accordance with the policy of
“3. (10) Financial Instruments” in this Note on the modification or re-negotiation of the
contract.
3. Sale and leaseback transaction
The company evaluates and determines whether the asset transfer in the sale and leaseback
transaction is a sale in accordance with the principles described in "3. (24) Revenue" of this
Note.
(1) As the lessee
If the transfer of an asset in the sale and leaseback transaction is a sale the company as the
lessee measures the right-of-use asset arising from the leaseback at the proportion of the
previous carrying amount of the asset that relates to the right-of-use retained by the lessee
and recognize only the amount of any gain or loss that relates to the rights transferred to the
lessor.For details on the subsequent measurement of right-of-use assets and lease liabilities and
lease changes after the commencement date of the lease term please refer to Note III. (28)
Leases 1. The Company as Lessee. When subsequently measuring the lease liabilities arising
from a sale and leaseback the Company determines the lease payments or the modified lease
payments in a manner that does not result in the recognition of gains or losses related to the
right of use acquired through the leaseback.If the asset transfer in the sale and leaseback transaction does not belong to the sale the
company as the lessee continues to recognize the transferred assets and at the same time
Notes to the financial statements Page 39Bengang Steel Plates Co. Ltd.Notes to the financial statements
recognize a financial liability equal to the transfer proceeds. For the accounting treatment of
financial liabilities please refer to "3. (10) Financial Instruments" in this note.
(2) As a lessor
If the asset transfer in the sale and leaseback transaction is a sale the company acts as the
lessor to account for the purchase of the asset and the asset lease is accounted for in
accordance with the aforementioned "2. The company as the lessor" policy; in the sale and
leaseback transaction If the transfer of assets is not a sale the company as the lessor does not
recognize the transferred assets but recognizes a financial asset equal to the transfer proceeds.For the accounting treatment of financial assets please refer to "3. (10) Financial
Instruments" in this note.
(29) Debt restructuring
1. The company as the creditor
The Company terminates the recognition of claims when the contractual right to collect cash
flows from the claims terminates. If debt is restructured by using assets to pay off debts or by
converting debts into equity instruments the company will recognize the relevant assets
when they meet their definition and recognition conditions.If debt restructuring is carried out by repaying debts with assets the transferred non-financial
assets shall be measured at cost at initial recognition.The Company shall recognize and measure the restructured claims in accordance with "III.
(10) Financial Instruments" of this Note.
When multiple assets are used to settle debts or for debt restructuring the Company shall first
recognize and measure the financial assets acquired and the restructured claims in accordance
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
Notes to the financial statements Page 40Bengang Steel Plates Co. Ltd.Notes to the financial statements
termination of recognition and the difference between the book value of the debts settled and
the book value of the transferred assets shall be included in the current profit and loss.In case of debt restructuring by converting debt into equity instruments the Company shall
derecognize the debts paid when they meet the derecognition conditions. Equity instrument
shall be measured at fair value at initial recognition. If the fair value of an equity instrument
cannot be measured reliably it is measured at the fair value of the debt settled. The difference
between the carrying amount of the debt settled and the amount recognized as an equity
instrument should be recognized in the current period's profit or loss.If debt restructuring is carried out by modifying other terms the Company shall recognize
and measure the restructured debt in accordance with “III. (10) Financial Instruments” of this
Note.If multiple assets are used to repay debts or a combination is used to restructure debt the
company shall confirm and measure equity instruments and restructured debts in accordance
with the aforementioned methods. The difference between the carrying amount of the debt
settled and the sum of the carrying amount of the transferred assets and the recognized
amount of the equity instruments and restructured debts is included in the current period's
profit and loss.
(30) Other Significant Accounting Policies and Accounting Estimates
Major accounting estimates and judgments
When preparing financial statements the Company's management needs to use estimates
and assumptions which will affect the application of accounting policies and the amount of
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
Notes to the financial statements Page 41Bengang Steel Plates Co. Ltd.Notes to the financial statements
company uses internal historical credit loss experience and other data and adjusts the
historical data in combination with current conditions and forward-looking information.When considering forward-looking information the indicators used by the Company
include the risk of economic downturn the expected increase in unemployment rate
changes in the external market environment technological environment and customer
conditions. The Company regularly monitors and reviews assumptions related to the
calculation of expected credit losses.
2. Inventory ImpairmentAs mentioned in note 3 (12) Inventory under “3 Significant accounting policies andaccounting estimates” the Company regularly estimates the net realizable value of the
inventory and recognizes the difference in inventory cost higher than the net realizable
value. When estimating the net realizable value of inventory the Company considers the
purpose of holding the inventory and uses the available information as the basis for
estimation including the market price of the inventory and the Company's past operating
costs. The actual selling price completion cost sales expenses and taxes of the inventory
may change according to changes in market sales conditions production technology or the
actual use of the inventory. Therefore the amount of inventory depreciation reserve may
change according to the above reasons. Adjustments to the inventory impairment will affect
the current profit and loss.
3. Impairment of other assets except inventory and financial assets
As mentioned in note 3 (19) Long-term Asset Impairment the company performs an
impairment assessment on assets other than inventory and financial assets on the balance
sheet date to determine whether the recoverable amount of the asset has fallen to a lower
level than its book value. If the situation shows that the book value of the long-term assets
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
Notes to the financial statements Page 42Bengang Steel Plates Co. Ltd.Notes to the financial statements
calculating the present value. The Company will use all available relevant information
when estimating the recoverable amount including the prediction of output selling price
and related operating costs based on reasonable and supportable assumptions.
4. Depreciation and amortization of assets such as fixed assets and intangible assets
As described in note 3 (15) Fixed Assets and note 3 (18) Intangible Assets the company
shall accrue depreciation for the fixed assets and amortization for intangible assets within
the useful life after considering their residual value. The company regularly reviews the
useful life of related assets to determine the amount of depreciation and amortization
expenses to be included in each reporting period. The useful life of assets is determined by
the company based on past experience with similar assets and in combination with
anticipated technological changes. If the previous estimates change significantly the
depreciation and amortization expenses will be adjusted in the future.
5. Deferred tax assets
When it is estimated that sufficient taxable income can be obtained in the future to use the
unrecovered tax losses and deductible temporary differences the relevant deferred tax
assets are calculated and confirmed on the basis of the applicable income tax rate during the
period when the asset is expected to be recovered and the amount of taxable income is
limited to deductible tax losses and deductible temporary differences likely to be obtained
by the Company. The Company needs to use judgment to estimate the time and amount of
future taxable income and make reasonable estimates and judgments on the future
applicable income tax rate according to the current tax policy and other related policies to
determine the deferred tax assets that should be recognized. If the time and amount of
profits actually generated in the future period or the actual applicable income tax rate are
different from the management's estimate the difference will have an impact on the amount
of deferred tax assets.
(31) Criteria of Materiality
Items Materiality Criteria
The company considers accounts receivables exceeding RMB 5 million as
Significant Receivables
significant accounts receivables.Significant Accounts The company considers accounts payables exceeding RMB 5 million as
Payables significant accounts payables.Significant Other The company considers other payables exceeding RMB 5 million as
Payables significant other payables.Notes to the financial statements Page 43Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items Materiality Criteria
Significant The company regards the projects with the highest amount transferred to fixed
Construction in assets or the top 10 projects with the final balance of the current period and
Progress the amount exceeding RMB 50 million as significant construction in progress.Significant
The Company regards development expenditures exceeding RMB 5 million
Development
as significant development expenditures.Expenditure
Significant Joint The company considers joint ventures or associated companies with an ending
Ventures or Associated balance of more than RMB 100 million as important joint ventures or
Companies associated companies.Subsidiaries whose total assets/total revenue/total profit exceed 15% of the
Significant Subsidiaries group's total assets/total revenue/total profit are considered as significant
subsidiaries.
(32) Change of significant accounting policy and accounting estimate
1. Change of major accounting policy during this reporting period
Implementing the Provisions of the "Q&A on the Implementation of Accounting
Standards for Financial Instruments" Regarding Accounting Treatment for Standard
Warehouse Receipt Trading
On July 8 2025 the Ministry of Finance issued Implementation Questions and Answers
regarding the Accounting Treatment of Standard Warehouse Receipt Trading. It explicitly
stipulates that in accordance with the Accounting Standards for Financial Instruments:
Recognition and Measurement if an enterprise frequently enters into contracts for the
purchase and sale of standard warehouse receipts on a futures exchange—with the aim of
earning price spreads and without taking physical delivery of the commodities underlying
the receipts—this typically indicates that the enterprise has an established practice of
reselling the subject matter of the contract shortly after receipt in order to profit from
short-term price fluctuations. Consequently the enterprise shall treat such contracts for the
purchase and sale of standard warehouse receipts as financial instruments and apply the
accounting treatment prescribed by the Accounting Standards for Financial Instruments:
Recognition and Measurement. If an enterprise resells standard warehouse receipts shortly
after acquiring them pursuant to the aforementioned contracts it shall not recognize sales
revenue; instead the difference between the consideration received and the carrying amount
of the sold warehouse receipts shall be recorded as investment income. Furthermore if the
Notes to the financial statements Page 44Bengang Steel Plates Co. Ltd.Notes to the financial statements
enterprise holds unsold standard warehouse receipts at the end of a reporting period these
holdings shall be presented as "other current assets."
In accordance with the requirements of the Notice on Strictly Implementing Enterprise
Accounting Standards and Effectively Conducting Enterprise Annual Reporting for 2025
(Caikuai [2025] No. 33) if an enterprise adjusts its accounting treatment methods as a
result of implementing the aforementioned regulations regarding standard warehouse
receipts it shall adjust the information for comparable periods presented in its financial
statements. This policy has no impact on the Company.
2. Change of accounting estimate during the reporting period
There is no significant changes in accounting estimates during the reporting period.
4. Taxes
(1) Major type of taxes and corresponding tax rates
Tax Taxation Method Tax Rate
The balance of output VAT calculated
based on product sales and taxable
Value-added Tax (VAT) services revenue in accordance with the 6% 9% 13%
tax laws after subtracting the deductible
input VAT of the period
Based on VAT and business tax actually
City maintenance and construction tax 5% 7%
paid
See the table below
Enterprise income tax Based on taxable income
for details
Notes to taxpayers with different corporate income tax rates:
Name of the taxpayers Income tax rate (%)
Bengang Steel Plates Co. Ltd 15
Shanghai Bengang Metallurgy Science and Technology Co. Ltd. 25
Benxi Bengang Steel Sales Co. Ltd. 25
Bengang Posco Cold-rolled Sheet Co. Ltd. 15
Tianjin Bengang Steel & Iron Trading Co. Ltd. 25
Green Gold (Benxi) Renewable Resources Co. Ltd. 25
Yantai Bengang Steel & Iron Sales Co. Ltd. 25
Notes to the financial statements Page 45Bengang Steel Plates Co. Ltd.Notes to the financial statements
Name of the taxpayers Income tax rate (%)
Guangzhou Bengang Steel & Iron Trading Co. Ltd. 25
Dalian Benruitong Automobile Material Technology Co. Ltd. 25
Shenyang Bengang Metallurgical Science and Technology Co. Ltd. 25
North Hengda Logistics Co. Ltd 25
(2) Tax Preference
1. The company has obtained the high-tech enterprise certificate certificate number:
GR202421001555; valid from November 27 2024 to November 27 2027. The company
pays corporate income tax at a reduced rate of 15%.
2. Benxi Posco Cold-Rolled Sheet Co. Ltd. the subsidiary of the Company has obtained
the High-tech Enterprise Certificate certificate number: GR202321001624; valid from
December 20 2023 to December 20 2026. Benxi Steel Posco Cold-Rolled Sheet Co. Ltd.pays corporate income tax at a reduced tax rate of 15%.
3. On December 30 2021 the Ministry of Finance and the State Administration of Taxation
issued the "Announcement on Improving the Value-Added Tax Policy for Comprehensive
Utilization of Resources" (Announcement No. 40 of the Ministry of Finance and the State
Administration of Taxation in 2021). The announcement will take effect on March 1 2022.The original "Notice of the Ministry of Finance and the State Administration of Taxation on
Issuing the "Catalogue of Value-Added Tax Preferential Policies for Comprehensive
Utilization of Resources Products and Services" (Finance and Taxation [2015] No. 78) will
be abolished at the same time except for "technical standards and related conditions". The
electricity and heat produced and sold by the Energy Development Branch of Benxi Iron
and Steel Co. Ltd. a branch of the Company are items listed in the "Catalogue of
Value-Added Tax Preferential Terms for Comprehensive Resource Utilization Products and
Services" and enjoy the value-added tax refund policy.
4. On September 3 2023 the Ministry of Finance and the State Administration of Taxation
issued the "Announcement on the VAT Surcharge Deduction Policy for Advanced
Manufacturing Enterprises" (Announcement No. 43 of the Ministry of Finance and the
State Administration of Taxation in 2023). From January 1 2023 to December 31 2027
the announcement allows advanced manufacturing enterprises to deduct the payable VAT
by adding 5% to the current deductible input tax. Benxi Posco Cold Rolled Sheet Co. Ltd.a subsidiary of our company belongs to the advanced manufacturing industry and enjoys
the VAT surplus deduction policy.Notes to the financial statements Page 46Bengang Steel Plates Co. Ltd.Notes to the financial statements
5. Notes to the consolidated financial statements
(1) Cash at bank and on hand
Items 2025/12/31 2024/12/31
Cash on hand
Cash at bank 92723863.54 363006448.43
Other monetary funds 839920368.84 863683251.57
Funds placed in a finance company account 194746442.77 1227198770.48
Total 1127390675.15 2453888470.48
Including：Total amount deposited abroad
Funds deposited overseas with
restrictions on repatriation
Notes: As at 31 December 2025 bank acceptance deposit of RMB 839920368.84was not recognized as
cash and cash equivalents in the cash flow statement.
(2) Notes receivable
1. Notes receivable disclosed by category
Items 2025/12/31 2024/12/31
Bank acceptance bill 236004720.54 241529481.42
Commercial acceptance bill 163755056.29 365750000.00
Total 399759776.83 607279481.42
Notes to the financial statements Page 47Bengang Steel Plates Co. Ltd.Notes to the financial statements
2. Notes receivable disclosed by bad debt accrual method
2025/12/312024/12/31
Provision for bad
Carrying amount Provision for bad debts Carrying amount
Items debts
Book value Book value
Bad debts Percentage Bad debts
Amount Percentage (%) Amount Amount Amount
ratio (%) (%) ratio (%)
Provision for bad
debts individually
Provision for bad
debts based on
399759776.83100.00399759776.83607279481.42100.00607279481.42
portfolio of credit
risk characteristics
Total 399759776.83 100.00 399759776.83 607279481.42 100.00 607279481.42
Notes to the financial statements Page 48Bengang Steel Plates Co. Ltd.Notes to the financial statements
Provision for bad debts based on portfolio of credit risk characteristics
Portfolio items:
2025/12/31
Items
Notes receivable Provision for bad debts Bad debts ratio (%)
Commercial acceptance bill 163755056.29
Bank acceptance bill 236004720.54
Total 399759776.83
3. The pledged acceptance bill at the year-end
Items Notes receivable pledged at the end of period
Bank acceptance bill 6182721.01
Total 6182721.01
4. The amount of notes receivable endorsed over or discounted but not yet matured at the year-end
Amount terminated at the end Amount was not terminated at
Items
of the period the end of the period
Bank acceptance bill 3255327628.00 226619630.11
Commercial acceptance bill 1326790375.79
Total 4582118003.79 226619630.11
(3) Accounts receivable
1. Accounts receivable disclosed by aging
Items 2025/12/31 2024/12/31
Within 1 year (inclusive) 1149629532.02 478210867.53
1-2 years (inclusive) 42575692.54 5786445.58
2-3 years (inclusive) 2911370.99 28559402.34
3-4 years (inclusive) 27852241.32 557413.41
4-5 years (inclusive) 556497.21 5592931.88
over 5 years 88417222.29 379435859.17
Notes to the financial statements Page 49Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items 2025/12/31 2024/12/31
Subtotal 1311942556.37 898142919.91
Less: Provision for bad debts 133162099.60 396658838.18
Total 1178780456.77 501484081.73
Notes to the financial statements Page 50Bengang Steel Plates Co. Ltd.Notes to the financial statements
2. Accounts receivable disclosed by the bad debt accrual method
2025/12/312024/12/31
Gross carrying amount Provision for bad debts Gross carrying amount Provision for bad debts
Bad
Items
Percentage debts Book value Percentage Percentage Book value
Amount Amount Amount Amount
(%) ratio (%) (%)
(%)
Tested for
impairment 48196244.68 3.67 48196244.68 100.00 334963124.35 37.30 334963124.35 100.00
individually
Tested for
impairment 1263746311.69 96.33 84965854.92 6.72 1178780456.77 563179795.56 62.70 61695713.83 10.95 501484081.73
by portfolio
Including:
Aging 1263746311.69 84965854.92 1178780456.77 563179795.56 61695713.83 501484081.73
portfolio
Total 1311942556.37 100.00 133162099.60 1178780456.77 898142919.91 100.00 396658838.18 501484081.73
Notes to the financial statements Page 51Bengang Steel Plates Co. Ltd.Notes to the financial statements
Significant accounts receivables tested for impairment individually:
2025/12/312024/12/31
Bad
Company Carrying Provision for debts Carrying Provision for
Reason
amount bad debts
amount bad debts ratio
(%)
Benxi Nanfen Xinhe
Metallurgical Furnace 48196244.68 48196244.68 100.00 Discontinued 48196244.68 48196244.68
Material Co. Ltd
Brilliance Automotive
Group Holdings Co. 286766879.67 286766879.67
Ltd.Total 48196244.68 48196244.68 334963124.35 334963124.35
Provision for bad debts based on portfolio of credit risk characteristics
Provision for bad debts by portfolio: Aging analysis
2025/12/31
Items
Account Receivable Provision for bad debts Bad debt ratio（%）
Within 1 year
1149629532.0211496295.331.00
(inclusive)
1-2 years (inclusive) 42575692.54 4257569.25 10.00
2-3 years (inclusive) 2911370.99 582274.20 20.00
3-4 years (inclusive) 27852241.32 27852241.32 100.00
4-5 years (inclusive) 556497.21 556497.21 100.00
over 5 years 40220977.61 40220977.61 100.00
Total 1263746311.69 84965854.92
3. The provision for bad debts accrued reversed or recovered in the current period
Changes during the current period
Items 2024/12/31 Reversed or Write-off or Other 2025/12/31
Accrued
recovered Write-back changes
Provision
396658838.1832997999.0721641769.22274852968.43133162099.60
for bad
Notes to the financial statements Page 52Bengang Steel Plates Co. Ltd.Notes to the financial statements
Changes during the current period
Items 2024/12/31 Reversed or Write-off or Other 2025/12/31
Accrued
recovered Write-back changes
debts
Total 396658838.18 32997999.07 21641769.22 274852968.43 133162099.60
Significant amount of bad debt provision recovered or reversed during the period:
Basis for determining
Reversed or Recovered the original bad debt
Company Reason
recovered method provision and its
reasonableness
Brilliance
Debt restructuring
Automotive Group 21641769.22 Repayment Bank deposit
agreements
Holdings Co. Ltd.Total 21641769.22
4. Accounts receivable has been written off this year.
Item Write-off amount
Actual write-off of accounts receivable 274852968.43
Details regarding the write-off of significant accounts receivable:
Arising from
Write-off
Write-off Related-Party
Company Nature Reason Procedures
amount Transactions
Performed
or not
The
restructuring
Legal
agreement
Brilliance Receivables from Opinion and
has been
Automotive Group Products and 265125110.45 Minutes of No
executed
Holdings Co. Ltd. Services Office
and
Meeting
liquidation
repayments
Notes to the financial statements Page 53Bengang Steel Plates Co. Ltd.Notes to the financial statements
Arising from
Write-off
Write-off Related-Party
Company Nature Reason Procedures
amount Transactions
Performed
or not
have been
completed.
5. Top five debtors and contract assets at the end of the period
Accounts Contract
Percentage Provision for
Company receivable as at assets at Total
(%) bad debts
2025/12/312025/12/31
Angang Group
International
Economic & Trade 663734937.01 663734937.01 50.59 6637349.37
Co. Ltd. Benxi
Branch
China
Construction Sixth
82637989.0882637989.086.308263798.91
Engineering
Bureau Co. Ltd.Taicang CIMC
Container
60592424.4560592424.454.62605924.24
Manufacture Co.Ltd.Liaoning Northern
Coal Chemical 53085518.70 53085518.70 4.05 4246806.95
(Group) Co. Ltd.Benxi Nanfen
Xinhe
48196244.6848196244.683.6748196244.68
Metallurgical
Refractories Co.Notes to the financial statements Page 54Bengang Steel Plates Co. Ltd.Notes to the financial statements
Accounts Contract
Percentage Provision for
Company receivable as at assets at Total
(%) bad debts
2025/12/312025/12/31
Ltd.Total 908247113.92 908247113.92 69.23 67950124.15
(4) Accounts receivable financing
1. Accounts receivable financing by category
Items 2025/12/31 2024/12/31
Notes Receivable 331321177.27 64399942.70
Total 331321177.27 64399942.70
Notes to the financial statements Page 55Bengang Steel Plates Co. Ltd.Notes to the financial statements
2. Changes in Accounts Receivable Financing and Fair Value During the Period
Accumulated loss allowances
Increase during the Termination during the
Item 2024/12/31 Other changes 2025/12/31 recognized in other comprehensive
current period current period
income
Notes Receivable 64399942.70 12537773155.70 12270851921.13 331321177.27
Total 64399942.70 12537773155.70 12270851921.13 331321177.27
3. Accounts Receivable Financing Pledged by the Company at Period-End
Item Pledged amount as at the period-end
Notes Receivable 120290859.64
Total 120290859.64
Notes to the financial statements Page 56Bengang Steel Plates Co. Ltd.Notes to the financial statements
(5) Prepayments
1. Prepayments disclosed by aging
2025/12/312024/12/31
Aging Percentage Percentage
Amount Amount
(%)(%)
Within 1 year
304163117.7196.61370426337.8394.53
(inclusive)
1-2 years (inclusive) 6869069.81 2.18 8643434.04 2.21
2-3 years (inclusive) 3737486.36 1.19 10372837.63 2.65
Over 3 years 56220.18 0.02 2380526.37 0.61
Total 314825894.06 100.00 391823135.87 100.00
Notes: There were no outstanding prepayments over 1 year.
2. Top five prepaid companies at the end of the period
Name of the company 2025/12/31 Percentage (%)
Shanxi Coking Coal Energy Group Co. Ltd. 46687665.87 14.83
Angang Group International Economic & Trade Co. 44117532.53 14.01
Ltd. Benxi Branch
Shanxi Coking Coal Group Coal & Coke Sales Co. 36858044.46 11.71
Ltd.Angang Group International Economic & Trading Co. 35372892.55 11.24
Ltd.Shanxi Coking Coal Group Co. Ltd. 30356971.68 9.64
Total 193393107.09 61.43
(6) Other receivables
Items 2025/12/31 2024/12/31
Interest receivables
Dividend receivables
Notes to the financial statements Page 57Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items 2025/12/31 2024/12/31
Other receivables 4034061.03 149015138.26
Total 4034061.03 149015138.26
1. Other receivables
(1) Other receivables disclosed by aging
Items 2025/12/31 2024/12/31
Within 1 year (inclusive) 1219878.37 58452918.98
1-2 years (inclusive) 1320621.74 91693078.45
2-3 years (inclusive) 4483668.45 13520953.62
3-4 years (inclusive) 12609103.20 3962574.01
4-5 years (inclusive) 3237069.03 842882.51
over 5 years 52360468.13 52141851.60
Subtotal 75230808.92 220614259.17
Less: Provision for bad debts 71196747.89 71599120.91
Total 4034061.03 149015138.26
Notes to the financial statements Page 58Bengang Steel Plates Co. Ltd.Notes to the financial statements
(2) Disclosed by bad debt accrual method
2025/12/312024/12/31
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Items
Percentage Bad debts Book value Percentage Bad debts Book value
Amount Amount Amount Amount
(%) ratio (%) (%) ratio (%)
Provision for bad
18192317.0024.1818192317.00100.0018192317.008.2518192317.00100.00
debts individually
Provision for bad
debts based on 57038491.92 75.82 53004430.89 92.93 4034061.03 202421942.17 91.75 53406803.91 26.38 149015138.26
portfolio
Include: Aging
56747273.8075.4353004430.8993.403742842.91202194971.9791.6553406803.9126.41148788168.06
portfolio
Risk-free
291218.120.39291218.12226970.200.10226970.20
portfolio
Total 75230808.92 100.00 71196747.89 4034061.03 220614259.17 100.00 71599120.91 149015138.26
Notes to the financial statements Page 59Bengang Steel Plates Co. Ltd.Notes to the financial statements
Significant other receivables tested for impairment individually:
2025/12/312024/12/31
Bad
Company Carrying Provision for debts Carrying Provision for
Reason
amount bad debts ratio amount bad debts
(%)
Benxi Iron
and Steel
(Group) No.
3 12504978.59 12504978.59 100.00 Discontinued 12504978.59 12504978.59
Architectural
Engineering
Co. Ltd.Total 12504978.59 12504978.59 12504978.59 12504978.59
Provision for bad debt by portfolio of credit risk characteristics:
Portfolio accrual item: Aging portfolio
2025/12/31
Items
Amount Provision for bad debts Percentage（%）
Within 1 year
928660.259286.601.00
(inclusive)
1-2 year (inclusive) 1320621.74 132062.17 10.00
2-3 year (inclusive) 2043637.11 408727.42 20.00
3-4 year (inclusive) 12609103.20 12609103.20 100.00
4-5 year (inclusive) 3237069.03 3237069.03 100.00
Over 5 years 36608182.47 36608182.47 100.00
Total 56747273.80 53004430.89
(3) Provision for Bad Debts
Stage one Stage two Stage three
Provision for bad debts Total
Notes to the financial statements Page 60Bengang Steel Plates Co. Ltd.Notes to the financial statements
Lifetime expected Lifetime expected
Expected Credit
credit losses (credit credit losses (credit
Losses for the Next 12
impairment has not impairment has
Months
occurred) already occurred)
Beginning balance 582286.02 11629495.43 59387339.46 71599120.91
Beginning balance during
current period
--Transfer to the second stage -66031.09 66031.09
--Transfer to the third stage -6304551.60 6304551.60
--Write-back to the second
stage
--Write-back to the first stage
Accruals for the current period -506968.33 -4850185.33 13655252.40 8298098.74
Reversal during the current
period
Write-back of the current
period
Write-off during the current
-8700471.76-8700471.76
period
Other changes
Ending balance 9286.60 540789.59 70646671.70 71196747.89
(4) Details of Bad Debt Provisions Accrued Reversed or Recovered During the Current
Period
Changes during the current period
Reversal
Items 2024/12/31 Write-back 2025/12/31
Accrual or Others
or write-off
recovered
Bad debt
provision
for other 71599120.91 8298098.74 8700471.76 71196747.89
receivables
Total 71599120.91 8298098.74 8700471.76 71196747.89
Notes to the financial statements Page 61Bengang Steel Plates Co. Ltd.Notes to the financial statements
(5) Details of Other Receivables Actually Written Off During the Current Period
Item Write-off amount
Actual write-off of other accounts receivable 8700471.76
(6) Other receivables disclosed by nature
Nature 2025/12/31 2024/12/31Compensation for the “Living
87177700.00Show Belt” project
Current Account 71623926.65 130478649.66
Others 3606882.27 2957909.51
Total 75230808.92 220614259.17
(7) Top five other receivables at the end of the period
Percentage of
Provision for
Nature or total other
Company Amount Aging bad debts at
content receivables
2025/12/31
(%)
Benxi Iron and
Steel (Group)
No. 3 Current over 5
12504978.5916.6212504978.59
Architectural Account years
Engineering Co.Ltd.Benxi Iron &
Steel (Group)
No. 1 Current over 5
3247307.074.323247307.07
Construction Account years
Engineering Co.Ltd.Benxi Iron &
Current 1-2 years
Steel (Group) 2674500.00 3.56 413000.00
Account 2-3 years
Co. Ltd.Liaoning 2261360.00 3.01 2261360.00
Huawei Coal Current over 5
Preparation Co. Account years
Ltd.
1916960.24 3-4 years 2.55 1916960.24
Benxi Ganglian Current 4-5 years
Slag Co. Ltd. Account over 5
years
Total 22605105.90 30.05 20343605.90
Notes to the financial statements Page 62Bengang Steel Plates Co. Ltd.Notes to the financial statements
(7) Inventories
1. Inventories disclosed by category
2025/12/312024/12/31
Inventory
Inventory
impairment/
Items impairment/Impairment
Gross carrying amount Book value Gross carrying amount Impairment of Book value
of contract fulfillment
contract
costs
fulfillment costs
Raw material 3171263464.65 256207419.31 2915056045.34 4300063154.21 247221306.73 4052841847.48
Work in progress 2473710024.54 64533859.33 2409176165.21 2001147780.74 26685410.19 1974462370.55
Finished goods 1074768310.11 29805634.54 1044962675.57 1337346627.43 31566151.19 1305780476.24
Total 6719741799.30 350546913.18 6369194886.12 7638557562.38 305472868.11 7333084694.27
2. Impairment of inventory and contract fulfillment cost
Increase Decrease
Category 2024/12/31 2025/12/31
Provision Others Write-back or write-off Others
Raw material 247221306.73 194505777.63 185519665.05 256207419.31
Work in progress 26685410.19 74883452.10 37035002.96 64533859.33
Notes to the financial statements Page 63Bengang Steel Plates Co. Ltd.Notes to the financial statements
Increase Decrease
Category 2024/12/31 2025/12/31
Provision Others Write-back or write-off Others
Finished goods 31566151.19 17499979.16 19260495.81 29805634.54
Total 305472868.11 286889208.89 241815163.82 350546913.18
Notes to the financial statements Page 64Bengang Steel Plates Co. Ltd.Notes to the financial statements
(8) Other current assets
Items 2025/12/31 2024/12/31
VAT input tax 431454249.59 401503924.78
Others 18817113.34 35577335.88
Total 450271362.93 437081260.66
Notes to the financial statements Page 65Bengang Steel Plates Co. Ltd.Notes to the financial statements
(9) Long-term equity investment
1. Long-term equity investment
Increase/decrease
Income or
Impairment loss on Impairment
2024/12/31 Reduction Other Declaration 2025/12/31
provision Addition investment Other Provision provision
Investees (Book of Comprehensive of Cash (Book
as of of recognized Equity of Others as of
value) Investme Income Dividends value)
2024/12/31 Investment under the Changes Impairment 2025/12/31
nt Adjustment or Profit
equity
method
2．Associated
Enterprise
Shenyang
Xiangyu New
Material 45413221.72 -2143337.68 43269884.04
Technology Co.Ltd.Subtotal
45413221.72-2143337.6843269884.04
Total
45413221.72-2143337.6843269884.04
Notes to the financial statements Page 66Bengang Steel Plates Co. Ltd.Notes to the financial statements
(10) Other equity instrument investment
1. The information of other equity instrument investment
Changes During the Current Period
Dividend Accumulated Accumulated
Gains Losses
income gains losses
recognized in recognized in
Addition Reduction recognized recognized in recognized in Reasons for
Item 2024/12/31 other other 2025/12/31
of of Others during the other other Designation
comprehensive comprehensive
Investment Investment current comprehensive comprehensive
income during income during
period income income
the period the period
Suzhou
Longben
Metal 3940544.25 34699.62 3975243.87 86263.87
Materials
Co. Ltd.Northeast
Special
Steel 929485710.38 -43040122.48 886445587.90 151290261.10
Group
Co. Ltd.Sinosteel 14414693.00
Notes to the financial statements Page 67Bengang Steel Plates Co. Ltd.Notes to the financial statements
Changes During the Current Period
Dividend Accumulated Accumulated
Gains Losses
income gains losses
recognized in recognized in
Addition Reduction recognized recognized in recognized in Reasons for
Item 2024/12/31 other other 2025/12/31
of of Others during the other other Designation
comprehensive comprehensive
Investment Investment current comprehensive comprehensive
income during income during
period income income
the period the period
Shanghai
Steel
Processing
Co. Ltd.Total 933426254.63 34699.62 -43040122.48 890420831.77 86263.87 165704954.10
Notes to the financial statements Page 68Bengang Steel Plates Co. Ltd.Notes to the financial statements
(11) Fixed assets
1. Fixed assets and Disposal of fixed assets
Items 2025/12/31 2024/12/31
Fixed assets 28412673622.89 26426320453.57
Disposal of fixed assets
Total 28412673622.89 26426320453.57
Notes to the financial statements Page 69Bengang Steel Plates Co. Ltd.Notes to the financial statements
2. Details of fixed assets
Transportation
Items Buildings Machinery Office equipment Total
equipment
1．Gross carrying amount
（1）31 December 2024 14262023176.62 52705897283.61 400985732.35 242916091.60 67611822284.18
（2）Increase in current period 345083211.93 3371864157.56 2675114.60 11543279.05 3731165763.14
—Including: Purchase 1958197.73 475557.53 2433755.26
—Transferred from
345083211.933368888047.222199557.0711543279.053727714095.27
construction in progress
—Increase in Business
Combinations
—Others 1017912.61 1017912.61
（3）Decrease in current period 95105426.10 349657275.84 14051231.60 219077.77 459033011.31
—Including: Disposal or
95105426.10349657275.8414051231.60219077.77459033011.31
scrapped
（4）31 December 2025 14512000962.45 55728104165.33 389609615.35 254240292.88 70883955036.01
2．Total accumulated depreciation
（1）31 December 2024 6843827644.40 33772852695.68 320082643.21 137437495.66 41074200478.95
Notes to the financial statements Page 70Bengang Steel Plates Co. Ltd.Notes to the financial statements
Transportation
Items Buildings Machinery Office equipment Total
equipment
（2）Increase in current period 243268845.62 1391369035.62 11026034.11 35084066.74 1680747982.09
—Including: Provision 243268845.62 1391369035.62 11026034.11 35084066.74 1680747982.09
（3）Decrease in current period 80046503.68 314116594.20 13430317.73 217876.03 407811291.64
—Including: Disposal or
80046503.68314116594.2013430317.73217876.03407811291.64
scrapped
（4）31 December 2025 7007049986.34 34850105137.10 317678359.59 172303686.37 42347137169.40
3．Total impairment
（1）31 December 2024 83249691.92 28051659.74 111301351.66
（2）Increase in current period 17044069.90 17044069.90
—Including: Provision 17044069.90 17044069.90
（3）Decrease in current period 833674.57 3367503.27 4201177.84
—Including: Disposal or
833674.573367503.274201177.84
scrapped
（4）31 December 2025 82416017.35 41728226.37 124144243.72
4．Total net book value of fixed
assets
（1）31 December 2025 7422534958.76 20836270801.86 71931255.76 81936606.51 28412673622.89
Notes to the financial statements Page 71Bengang Steel Plates Co. Ltd.Notes to the financial statements
Transportation
Items Buildings Machinery Office equipment Total
equipment
（2）31 December 2024 7334945840.30 18904992928.19 80903089.14 105478595.94 26426320453.57
Notes to the financial statements Page 72Bengang Steel Plates Co. Ltd.Notes to the financial statements
3. Fixed assets idled temporarily
Gross carrying Accumulated
Items Impairment Book value Note
amount depreciation
Buildings 112751517.87 68416882.13 41943853.74 2390782.00
Machinery 2923801.21 2348004.03 74824.18 500973.00
Transportation
58652.7856893.201759.58
equipment
Others 110671.80 109829.55 842.25
Total 115844643.66 70931608.91 42019520.17 2893514.58
4. Fixed assets leased out by operating lease
Items Book value
Buildings 84583912.78
Machinery 210973.38
5. Fixed assets without property rights certificates at the end of the period
Items Book value Reason
Buildings 2545489413.29 In process
(12) Construction in progress
1. Construction in progress and Construction materials
2025/12/312024/12/31
Total Total
Items Gross carrying Gross carrying
impair Book value impairm Book value
amount amount
ment ent
Construction in progress 3074712066.38 3074712066.38 3934442501.50 3934442501.50
Project materials
Total 3074712066.38 3074712066.38 3934442501.50 3934442501.50
Notes to the financial statements Page 73Bengang Steel Plates Co. Ltd.Notes to the financial statements
2. Details of construction in progress
2025/12/312024/12/31
Items Gross carrying Total Gross carrying Total
amount impairment Book value amount impairment Book value
Cold Rolling
Transformation 483026894.14 483026894.14 492919655.40 492919655.40
Project
Environmental
Protection
Renovation of 158152797.73 158152797.73 160208719.65 160208719.65
Plate Raw
Material Plant
Environmental
Upgrade of the
No. 2 Sintering
Stockyard at the 156323959.75 156323959.75 46697183.08 46697183.08
Sheet Metal
Ironmaking
Plant
Grid Upgrade
Project
Supporting the
Bancai
Nengguan
Center 142364867.84 142364867.84
Supercritical
Power
Generation
Project
Steam Drum to
Electric Drum
Conversion
Project of the 118526373.67 118526373.67 48987269.15 48987269.15
Plate Energy
Management
Center
Renovation of
the dust removal
system in the
No. 6 blast 96061655.94 96061655.94 64377725.64 64377725.64
furnace area of
? ? the Iron and
Steel Plant
Special Steel
Electric Furnace
Capacity 86939629.39 86939629.39 483671390.32 483671390.32
Replacement
Project
Bengang Plate
intelligent 85050424.38 85050424.38 53198819.53 53198819.53
factory Project
Desulphurization
Waste Liquor
Acid Making
Project in Plates 82624177.66 82624177.66 79335324.68 79335324.68
Iron Making
Plant
Retrofit of the
Dust Removal
System in the 68847544.63 68847544.63 46333893.64 46333893.64
New No.1 Blast
Notes to the financial statements Page 74Bengang Steel Plates Co. Ltd.Notes to the financial statements
2025/12/312024/12/31
Items Gross carrying Total Book value Gross carrying Totalamount impairment amount impairment Book value
Furnace Area at
the Ironmaking
General Works
Others 1596793741.25 1596793741.25 2458712520.41 2458712520.41
Total 3074712066.38 3074712066.38 3934442501.50 3934442501.50
Notes to the financial statements Page 75Bengang Steel Plates Co. Ltd.Notes to the financial statements
3. Changes in important construction projects in the current period
Project
cumulative
Transferred to Other investment Accumulated Including： Interest
Items Budget 2024/12/31 Increase during fixed asset
decrease accounted Project Interest capitalization
current period during current during 2025/12/31 for the progress
amount of Sources of
interest capitalization rate incurrent (%) fundsperiod period proportion capitalization
amount in current
of the current period period (%)
budget (%)
Special Steel
Electric Furnace
Capacity 1732481000.00 483671390.32 7086387.35 403818148.28 86939629.39 89.57 89.57 52044899.29 4.08 Fundraising
Replacement
Project
Centralized
Control Project
before Loan from
Ironmaking of 162000000.00 107816471.12 41244457.15 146571536.82 2489391.45 88.51 88.51 5675347.29 5675347.29 4.08 financialinstitute
Plates Iron
Making Plant
Renovation of
the Hot Blast
Furnace and
Heat Exchanger
of the No.7 145000000.00 120538633.05 21837952.00 142376585.05 98.19 98.19 OwnFunds
Blast Furnace in
Plate
Ironmaking
Plant
Cold Rolling Loan from
Transformation 843640000.00 492919655.40 85482604.91 95375366.17 483026894.14 95.65 95.65 52224686.79 12115610.33 4.08 financial
Project institute
Centralized
Control Project
before Own
Ironmaking of 80258847.34 80258847.34 15088525.25 95347372.59 79.64 79.64 Funds
Plates Iron
Making Plant
Notes to the financial statements Page 76Bengang Steel Plates Co. Ltd.Notes to the financial statements
Project
cumulative
Transferred to Otherdecrease investment Accumulated
Including： Interest
Project Interest capitalization
Items Budget 2024/12/31 Increase during fixed asset accounted amount of Sources ofcurrent period during current during 2025/12/31 for the progress interest capitalization rate in funds
period currentperiod proportion
(%) capitalization amount in current
of the current period period (%)
budget (%)
Ultra-low
emission
transformation
of the dust
removal system 99660000.00 68740566.29 21450808.39 90191374.68 90.5 90.5 OwnFunds
in the original
No.3 operation
areas of the Iron
and Steel Plant
Renovation of
cooling
equipment of
No.7 blast 90800000.00 65430926.20 23876974.79 89307900.99 98.36 98.36 OwnFunds
furnace in Plate
Ironmaking
Plant
Environmental
Protection
Renovation in Loan from
No. 2 Coal 310000000.00 119656230.22 5489481.00 83574769.65 41570941.57 92.36 92.36 9092899.25 4.08 financial
Storage Field of institute
Plates Raw
Material Plant
Sheet Metal
Ironmaking
Complex: Dust
Removal 99200000.00 81580.00 78808585.50 78890165.50 79.53 79.53 OwnFunds
Upgrade for the
265 Sintering
System
Notes to the financial statements Page 77Bengang Steel Plates Co. Ltd.Notes to the financial statements
Project
cumulative
Transferred to Other investment Accumulated Including： Interest
Items Budget 2024/12/31 Increase during fixed asset
decrease Project Interest capitalization
current period during current during 2025/12/31
accounted progress amount offor the interest capitalization rate in
Sources of
funds
period current proportion (%) capitalization amount in currentperiod of the current period period (%)
budget (%)
Capacity
Replacement
Project of No. 5
Blast Furnace of
Bensteel
Ironmaking
Plant
(Energy-saving Loan from
and 1106230000.00 55645429.58 16367092.34 72012521.92 87.89 87.89 31410224.04 4.08 financialinstitute
Environmental
Protection
Renovation of
No. 5 Blast
Furnace of
Ironmaking
Plant)
Environmental
Treatment of
the First and
Second Mixing
Systems for 61030000.00 37822726.20 15248233.80 53070960.00 86.96 86.96 OwnFunds
Sinter Machine
at Plate
Ironmaking
General Works
Fully Enclosed
Belt Conveyor
Gallery Project
at Benxi Steel 64900000.00 34238770.60 18087566.60 52326337.20 80.63 80.63 OwnFunds
Plate
Ironmaking
General Works
Notes to the financial statements Page 78Bengang Steel Plates Co. Ltd.Notes to the financial statements
Project
cumulative
Transferred to Other investment Accumulated Including： Interest
Items Budget 2024/12/31 Increase during fixed asset
decrease accounted Project amount of Interest capitalization Sources of
current period during current during 2025/12/31 progress capitalization rate in
period current
for the (%) interest funds
period proportion capitalization
amount in current
of the current period period (%)
budget (%)
Plate Hot
Rolling Mill
2300 Line Loan from
Reheating 80000000.00 15500355.74 35711627.07 51211982.81 73.5 73.5 625582.07 625582.07 4.08 financialinstitute
Furnace
Overhaul
Total 1682321582.06 385780296.15 1454075021.66 614026856.55 151073638.73 18416539.69
Notes to the financial statements Page 79Bengang Steel Plates Co. Ltd.Notes to the financial statements
(13) Right of use assets
1. Right of use assets
Items Land Buildings Machinery Total
1. Gross carrying
amount
(1) 31 December 2024 1132274415.17 368465367.56 444230189.48 1944969972.21
(2) Increase in current
1015148373.631015148373.63
period
—Addition 1015148373.63 1015148373.63
(3) Decrease in current
period
— Transfer to
Fixed Assets
(4) 31 December 2025 1132274415.17 368465367.56 1459378563.11 2960118345.84
2．Total accumulated
depreciation
(1) 31 December 2024 159616944.92 81881192.96 17546124.19 259044262.07
(2) Increase in current
39904236.2420470298.2833544155.3593918689.87
period
—Provision 39904236.24 20470298.28 33544155.35 93918689.87
(3) Decrease in current
period
— Transfer to
Fixed Assets
(4) 31 December 2025 199521181.16 102351491.24 51090279.54 352962951.94
3．Total impairment
(1) 31 December 2024
(2) Increase in current
period
(3) Decrease in current
period
— Transfer to
Notes to the financial statements Page 80Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items Land Buildings Machinery Total
Fixed Assets
(4) 31 December 2025
4．Total net book value
(1) 31 December 2025 932753234.01 266113876.32 1408288283.57 2607155393.90
(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
（3）Decrease
—Disposal
（4）31 December 2025 4439653.03 489429922.52 493869575.55
2．Total Accumulated Amortization
（1）31 December 2024 686823.46 98402683.41 99089506.87
（2）Increase 1164089.21 9956966.70 11121055.91
—Provision 1164089.21 9956966.70 11121055.91
（3）Decrease
—Disposal
— Portion that has become invalid
and been derecognized
（4）31 December 2025 1850912.67 108359650.11 110210562.78
3．Total of Impairment
（1）31 December 2024
（2）Increase
—Provision
Notes to the financial statements Page 81Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items Software Land use right Total
（3）Decrease
—Disposal
— Portion that has become invalid
and been derecognized
（4）31 December 2025
4．Total of Net book value
（1）31 December 2025 2588740.36 381070272.41 383659012.77
（2）31 December 2024 3752829.57 391027239.11 394780068.68
2. Land use right without property rights certificates at the end of the period
Items Book value Reason
Land use right 35439263.10 In process
Total 35439263.10
(15) Deferred tax asset and deferred tax liability
1. Deferred tax assets before taking into consideration of the balance offsetting
2025/12/312024/12/31
Deductible Deductible
Items Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
Impairment 678979736.04 102311312.63 598249997.63 90011580.45
Changes in fair value
of other financial
assets recognized in 165704954.07 24855743.11 122664831.62 18399724.74
other comprehensive
income
Tax-Accounting
Differences under 2587520333.13 388128049.97 1752154297.33 262823144.60
Lease Standards
Total 3432205023.24 515295105.71 2473069126.58 371234449.79
Notes to the financial statements Page 82Bengang Steel Plates Co. Ltd.Notes to the financial statements
2. Deferred tax liabilities before taking into consideration of the balance offsetting
2025/12/312024/12/31
Taxable Taxable
Items Deferred tax Deferred tax
temporary temporary
liabilities liabilities
differences differences
Changes in fair value
of other financial
assets recognized in 65857.87 9878.68 31158.29 4673.74
other comprehensive
income
Tax-Accounting
Differences under 2607155393.87 391073309.08 1685925710.14 252888856.52
Lease Standards
Total 2607221251.74 391083187.76 1685956868.43 252893530.26
3. Deferred income tax assets or liabilities presented at net amounts after offsetting
2025/12/312024/12/31
Offset Amount of Deferred Income Offset Amount of Deferred Income
Item Deferred Income Tax Asset or Deferred Income Tax Asset or
Tax Assets and Liability Balance Tax Assets and Liability Balance
Liabilities (Net of Offsetting) Liabilities (Net of Offsetting)
Deferred tax 371234449.79
391083187.76124211917.95
assets
Deferred tax 252893530.26
391083187.76
liabilities
4. Unrecognized deferred tax assets
Items 2025/12/31 2024/12/31
Deductible temporary differences 70268.35 286782181.23
Deductible losses 13500278662.54 9483185444.74
Notes to the financial statements Page 83Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items 2025/12/31 2024/12/31
Total 13500348930.89 9769967625.97
5. The deductible loss of unrecognized deferred tax assets due in the following period
Year 31 December 2025 31 December 2024 Notes
Year 2025 8257832.98
Year 2026 2512631.86 6799314.77
Year 2027 8117351.82 8117351.82
Year 2028
Year 2029
Year 2030
Year 2031
Year 2032 1911715647.99 1911715647.99
Year 2033 2367541315.76 2367541315.76
Year 2034 5125613839.53 5180753981.42
Year 2035 4084777875.58
Total 13500278662.54 9483185444.74
(16) Other non-current assets
2025/12/312024/12/31
Gross
Items Gross carrying
carrying Impairment Book value Impairment Book value
amount
amount
Prepayment
for
construction 54632516.72 54632516.72 86297275.16 86297275.16
and
equipment
Total 54632516.72 54632516.72 86297275.16 86297275.16
Notes to the financial statements Page 84Bengang Steel Plates Co. Ltd.Notes to the financial statements
(17) Assets with restricted ownership or use rights
2025/12/312024/12/31
Items Type of Type of
Carrying amount Book value Status Carrying amount Book value Status
restriction restriction
Margin for
Margin for Notes Margin for Notes Margin for Notes
Notes
Cash at bank and receivable receivable receivable
839920368.84 839920368.84 863683251.57 863683251.57 receivable
on hand Margin for letter Margin for letter Margin for letter
Margin for letter
of credit of credit of credit
of credit
Notes receivable 6182721.01 6182721.01 Pledged Pledged 165968800.17 165968800.17 Pledged Pledged
Accounts
receivable 120290859.64 120290859.64 Pledged Pledged
financing
Total 966393949.49 966393949.49 1029652051.74 1029652051.74
Notes to the financial statements Page 85Bengang Steel Plates Co. Ltd.Notes to the financial statements
(18) Short-term loans
1. Classification of short-term loans
Items 2025/12/31 2024/12/31
Credit loans 200000000.00 370000000.00
Discounted unexpired bills 133660470.12 1055490.50
Total 333660470.12 371055490.50
(19) Notes payable
Items 2025/12/31 2024/12/31
Bank acceptance bill 10925339515.71 10412029417.45
Commercial acceptance bill 900231371.80 1559477470.97
Letter of credit 1136716755.37 1011196781.44
Total 12962287642.88 12982703669.86
Note: The total amount of overdue but unpaid bills payable at the end of this period was RMB
48559.99 and the reason for the overdue non-payment was that the holder did not submit a
payment application.
(20) Accounts payable
1. Accounts payable
Items 2025/12/31 2024/12/31
Within 1 year (inclusive) 2526036992.36 2680864210.15
1-2 year (inclusive) 99557994.74 61748259.48
2-3 year (inclusive) 25862929.99 8554593.94
Over 3 years 15778495.57 10592375.79
Total 2667236412.66 2761759439.36
2. Significant accounts payable aging over one year or overdue
Items 2025/12/31 Reasons
Benxi Iron & Steel (Group) Information 12971075.23 Not yet eligible for
Notes to the financial statements Page 86Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items 2025/12/31 Reasons
Automation Co. Ltd. settlement
Total 12971075.23
(21) Prepayments
Items 2025/12/31 2024/12/31
Within 1 year (inclusive) 49541.35 611.60
1-2 year (inclusive) 58715.61
2-3 year (inclusive)
Over 3 years
Total 49541.35 59327.21
(22) Contract liabilities
1. Details of contract liabilities
Items 2025/12/31 2024/12/31
Payment received in advance and labor costs 2736697947.25 2894761202.08
Others 13837223.65
Total 2736697947.25 2908598425.73
(23) Employee benefits payable
1. Employee benefits payable
Items 2024/12/31 Increase Decrease 2025/12/31
Short-term employee 1773068.35 1705470986.36 1704657171.42 2586883.29
benefits
Post-employment 230401591.11 230401591.11
benefits - defined
contribution plans
Termination benefits 117157117.98 117157117.98
Other benefits due within
one year
Notes to the financial statements Page 87Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items 2024/12/31 Increase Decrease 2025/12/31
Total 1773068.35 2053029695.45 2052215880.51 2586883.29
2. Short-term employee benefits
Items 2024/12/31 Increase Decrease 2025/12/31
(1) Salary bonus
1238926668.601238926668.60
allowance and subsidy
(2) Employee welfare 158989619.31 158989619.31
(3) Social Insurance 116652644.33 116652644.33
Including: Medical
insurance and maternity 97024776.37 97024776.37
insurance
Work injury
19627867.9619627867.96
insurance
Others
(4) Housing fund 140031949.00 140031949.00
(5) Union funds and staff
1773068.3531034832.3230221017.382586883.29
education fee
(6) Short-term
compensated absences
(7) Short-term profit -
sharing scheme
(8) Other short-term
19835272.8019835272.80
benefits
Total 1773068.35 1705470986.36 1704657171.42 2586883.29
3. Defined contribution plans
Items 2024/12/31 Increase Decrease 2025/12/31
Basic pension fund 184768778.80 184768778.80
Unemployment insurance 5774655.52 5774655.52
Annuity 39858156.79 39858156.79
Notes to the financial statements Page 88Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items 2024/12/31 Increase Decrease 2025/12/31
Total 230401591.11 230401591.11
(24) Current tax liabilities
Items 2025/12/31 2024/12/31
Value-added tax 10075228.91 10272516.44
Resource Tax 1965703.36 750000.00
Corporate income tax 14251204.39 16029179.78
Individual income tax 8351507.38 2157426.95
City maintenance and construction tax 708128.46 540889.49Educational surcharges（ including local
6967050.057370656.33Educational surcharges）
House property tax 505806.05 386769.92
Land use right tax 1144608.49 1088809.99
Others 15888049.72 15473848.93
Total 59857286.81 54070097.83
(25) Other payables
Items 2025/12/31 2024/12/31
Interest payables
Dividends payables 45054305.70 99687100.35
Other payables 2730489890.41 2255007099.66
Total 2775544196.11 2354694200.01
1. Dividends payables
Items 2025/12/31 2024/12/31
Bengang Group Co. Ltd. 45054305.70 45054305.70
Pohang Iron and Steel Co. Ltd (POSCO) 54632794.65
Total 45054305.70 99687100.35
Notes to the financial statements Page 89Bengang Steel Plates Co. Ltd.Notes to the financial statements
2. Other payables
(1) Other payables disclosed by nature
Items 2025/12/31 2024/12/31
Current Accounts 2344273165.96 1871598040.35
Deposit 559292.00 586292.00
Margin 382448871.66 377422555.34
Others 3208560.79 5400211.97
Total 2730489890.41 2255007099.66
(2) Significant other payables aged over one year or overdue
Items 2025/12/31 Reasons
Hunan MCC Changtian Energy Saving and 21291952.51 The project is still in
Environmental Protection Technology Co. Ltd. progress
7908386.00 The project is still in
Shanghai Baosight Software Co. Ltd.progress
4742787.61 The project is still in
China Third Metallurgical Group Co. Ltd.progress
Total 33943126.12
(26) Non-current liabilities due within one year
Items 2025/12/31 2024/12/31
Long-term loans due within one year 927300000.00 805270731.20
Bond payables due within one year 5665550635.00 106989474.64
Lease liabilities due within one year 348084227.49 118242710.82
Total 6940934862.49 1030502916.66
(27) Other current liabilities
Items 2025/12/31 2024/12/31
Output tax to be transferred 275281765.24 328981058.74
Notes to the financial statements Page 90Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items 2025/12/31 2024/12/31
Total 275281765.24 328981058.74
(28) Long-term loans
Items 2025/12/31 2024/12/31
Pledged loans
Mortgage loan
Guaranteed loans
Credit loans 6941769758.11 3697212193.60
Subtotal 6941769758.11 3697212193.60
Less: Non-current liabilities due within
927300000.00805270731.20
one year
Total 6014469758.11 2891941462.40
Notes: The interest rate of long-term loans is 2.39%-3.67%.
(29) Bonds payable
1. Bonds payable disclosed by category
Items 2025/12/31 2024/12/31
Convertible Bond 5569899459.53
Total 5569899459.53
Notes to the financial statements Page 91Bengang Steel Plates Co. Ltd.Notes to the financial statements
2. Changes in Bonds payables (Excluding other financial instruments such as preferred stocks and perpetual bonds classified as financial liabilities)
Share
conversio
Balance at the end Premium and Balance at the end
Coupo Issue Bond Current Interest accrued Repayment in n and Default
Items Face value Issuance amount of the previous discount of the current
n rate date duration issue at face value this period repurchas or not
year amortization period
e this
year
Bengang
29th
Convertible
6800000000.00 June 6 years 6800000000.00 5676888934.17 247774352.50 -45093127.03 213987524.64 32000.00 5665550635.00 No
Bond (Bond
2020
code:127018)
Less: amount
due within one 106989474.64 247774352.50 -45093127.03 213987524.64 32000.00 5665550635.00 No
year
Total 6800000000.00 5569899459.53
3. Description of corporate convertible bond:
Notes to the financial statements Page 92Bengang Steel Plates Co. Ltd.Notes to the financial statements
Approved by Shenzhen Stock Exchange "Shen Zheng Shang [2020] No. 656" the Company’s RMB 6.80 billion convertible corporate bonds were listed on
the Shenzhen Stock Exchange on August 4 2020 and the abbreviation is "Bengang Convertible Bonds". The bond code is "127018". The conversion period
of the convertible corporate bonds issued this time is from the first trading day after six months of the issuance of the convertible corporate bonds (July 3
2020) to the maturity date of the convertible corporate bonds that is from January 4 2021 to June 28 2026. The initial conversion price of the convertible
bonds is RMB 5.03 per share. From January 1 2025 to December 31 2025 an aggregate of RMB32000.00 of the convertible bonds were converted into
8096.00 common stock. Among them:
In the first quarter of 2025 the Bengang convertible bonds were reduced by RMB 15000.00 (150 bonds) due to the conversion and the number of shares
converted was 3795.00 shares and the conversion price was RMB3.95 per share;
In the second quarter of 2025 the Bengang convertible bonds were reduced by RMB 1000.00 (10 bonds) due to the conversion and the number of shares
converted was 253.00 shares and the conversion price was RMB3.95 per share;
In the third quarter of 2025 the Bengang convertible bonds were reduced by RMB13000.00 (130 bonds) due to the conversion and the number of shares
converted was 3036.00 shares and the conversion price was RMB3.95 per share;
In the forth quarter of 2025 the Bengang convertible bonds were reduced by RMB 4000.00 (40 bonds) due to the conversion and the number of shares
converted was 1012.00 shares and the conversion price was RMB3.95 per share;
As of December 31 2025 the remaining amount of the face value of the convertible bonds was RMB 5630953100.00 Yuan (56309531.00 bonds).Notes to the financial statements Page 93Bengang Steel Plates Co. Ltd.Notes to the financial statements
(30) Lease liabilities
Items 2025/12/31 2024/12/31
Lease payments 3357181841.40 2539395930.63
Less: Unrealized financing expenses 769661508.27 787241633.30
Reclassified to non-current liabilities
348084227.49118242710.82
within one year
Total 2239436105.64 1633911586.51
(31) Deferred income
Items 2024/12/31 Increase Decrease 2025/12/31 Reason
Government
173919087.4747760050.0063479720.89158199416.58
subsidy
Total 173919087.47 47760050.00 63479720.89 158199416.58
Notes to the financial statements Page 94Bengang Steel Plates Co. Ltd.Notes to the financial statements
The details of the government subsidy projects are as follows:
Transfer to Offsetting
Transfer to Other
Related to assets or income 2024/12/31 Increase non-operating cost or 2025/12/31
other income changes
income expenses
Related to assets 167930005.80 46333000.00 59001148.00 155261857.80
Related to income 5989081.67 1427050.00 4478572.89 2937558.78
Total 173919087.47 47760050.00 63479720.89 158199416.58
Notes to the financial statements Page 95Bengang Steel Plates Co. Ltd.Notes to the financial statements
(32) Share capital
Increase/decrease (+ - )
Issuing Transferred
Items 2024/12/31 Bonus 2025/12/31
of new from Others Subtotal
shares
share reserves
Total
4108228157.008096.008096.004108236253.00
shares
Note: The decrease during the current period resulted from the conversion of 8096.00 shares
of the Company's A-share convertible bonds into the Company's A-share ordinary shares. As
of December 31 2025 the remaining face value balance of the Company's convertible bonds
amounted to RMB 5630953100.00 (comprising 56309531.00 bonds). For further details
please refer to Note 5. (29) Bonds payable.Notes to the financial statements Page 96Bengang Steel Plates Co. Ltd.Notes to the financial statements
(33) Other equity instruments
Changes in financial instruments such as preferred stocks and perpetual bonds issued at the end of the period
2024/12/31 Increase Decrease 2025/12/31
Items
Number Book value Number Book value Number Book value Number Book value
Convertible corporate
56309851.00947850195.03320.006514.2156309531.00947843680.82
bonds
Total 56309851.00 947850195.03 320.00 6514.21 56309531.00 947843680.82
Notes: The decrease during the current period was due to convertible bonds issued by the Company have been partially converted into common stock for an
aggregate of RMB32000.00 (320 bonds) and the remaining balance of the face value of the convertible bonds as of December 31 2025 was RMB
5630953100.00 Yuan (56309531.00 bonds). For details please refer to Note 5. (29) Bonds payable.
Notes to the financial statements Page 97Bengang Steel Plates Co. Ltd.Notes to the financial statements
(34) Capital reserves
Items 2024/12/31 Increase Decrease 2025/12/31
Capital (share)
13109714698.1323670.5313109738368.66
premium
Other capital reserves 115917468.82 27300000.00 143217468.82
Including: Changes in
Other Equity of the
Investee
Others 115917468.82 27300000.00 143217468.82
Total 13225632166.95 27323670.53 13252955837.48
Notes:
1. The increase was due to the conversion of A-share convertible bonds issued by the
Company into A-share common stock during the period as described in Note 5 (29)
Bonds payable.
2. The increase in "Other Capital Reserves" during the current period resulted from the
receipt of special funds from Angang Group thereby increasing the entity's state-owned
capital (specifically State-owned Exclusive Capital Reserves).Notes to the financial statements Page 98Bengang Steel Plates Co. Ltd.Notes to the financial statements
(35) Other comprehensive income
Current period
Less: amount
recognized in Income after Income after
Amounts
OCI in the tax tax attributable Less: transfer
Items 2024/12/31 before 2025/12/31
previous period Less: income tax attributable to to to retain
corporate
transfer to PL owners of the non-controlling earnings
income tax
in current Company interests
period
1．Items cannot be reclassified
-93407196.62-43005422.86-6450813.43-36554609.43-129961806.05
into profit or loss.including: Remeasurements of
the Net Defined Benefit
Liability (Asset)
Changes in fair value of
investments in other equity -43035854.74 -43005422.86 -6450813.43 -36554609.43 -79590464.17
instruments
2．Items can be reclassified into
profit or loss
Notes to the financial statements Page 99Bengang Steel Plates Co. Ltd.Notes to the financial statements
Current period
Less: amount
recognized in Income after Income after
Amounts
OCI in the tax tax attributable Less: transfer
Items 2024/12/31 before 2025/12/31
previous period Less: income tax attributable to to to retain
corporate
transfer to PL owners of the non-controlling earnings
income tax
in current Company interests
period
Total -93407196.62 -43005422.86 -6450813.43 -36554609.43 -129961806.05
Notes to the financial statements Page 100Bengang Steel Plates Co. Ltd.Notes to the financial statements
(36) Special Reserves
Items 2024/12/31 Increase Decrease 2025/12/31
Safety production
809649.6564166383.0364094530.45881502.23
cost
Total 809649.65 64166383.03 64094530.45 881502.23
(37) Surplus Reserves
Items 2024/12/31 Increase Decrease 2025/12/31
Statutory surplus
1195116522.371195116522.37
reserves
Total 1195116522.37 1195116522.37
(38) Undistributed Profits
Items Current period Previous period
Before adjustments: undistributed profits at last
-7497011632.90-2414685928.92
year-end
Adjustments of the beginning distributed profits
(increase + / decease -)
After adjustments: undistributed profit at this
-7497011632.90-2414685928.92
year-beginning
Add: undistributed profit belonging to parent
-3942278349.12-5037271398.28
company
Less: Statutory surplus reserves
Discretionary reserves
General risk reserves
Common shares dividend payable 45054305.70
Common shares dividend transferred to paid-in
capital
Ending balance of undistributed profits -11439289982.02 -7497011632.90
Notes to the financial statements Page 101Bengang Steel Plates Co. Ltd.Notes to the financial statements
(39) Operating income and operating cost
1. Operating income and operating cost
Current period Previous period
Items
Revenue Cost Revenue Cost
Principal
45626234164.3347687535996.7550512152677.6953926439230.70
business
Other
766016330.15753488614.63754208823.53767317574.73
business
Total 46392250494.48 48441024611.38 51266361501.22 54693756805.43
Notes to the financial statements Page 102Bengang Steel Plates Co. Ltd.Notes to the financial statements
2. Details about operating income and operating cost
Current period Current period Total
Item Principal business
Revenue Principal business Cost
Other business
Revenue Other business Cost Operating income Operating cost
Classification by the
time of commodity
transfer
Including: recognize at 45626234164.33 47687535996.75 757998253.03 749235374.69 46384232417.36 48436771371.44
a certain point in time
-Recognize
over a certain period of 8018077.12 4253239.94 8018077.12 4253239.94
time
Total 45626234164.33 47687535996.75 766016330.15 753488614.63 46392250494.48 48441024611.38
Classification by
business area
Including：Domestic 36332697501.93 37842466554.45 766016330.15 753488614.63 37098713832.08 38595955169.08
Abroad 9293536662.40 9845069442.30 9293536662.40 9845069442.30
Total 45626234164.33 47687535996.75 766016330.15 753488614.63 46392250494.48 48441024611.38
Notes to the financial statements Page 103Bengang Steel Plates Co. Ltd.Notes to the financial statements
Notes to the financial statements Page 104Bengang Steel Plates Co. Ltd.Notes to the financial statements
(40) Tax and surcharges
Items Current period Previous period
Environmental tax 20503102.25 25266354.57
City maintenance and construction tax 6189588.33 10385897.62
Educational surcharge 4601665.24 7465694.70
Resource Tax 9628850.52 750000.00
Housing property tax 89305760.01 85712608.51
Land use right tax 14215642.88 14382618.16
Vehicle and vessel tax 153519.70 224158.74
Stamp duty 60614230.72 58834787.91
Others 10878.64 21247.15
Total 205223238.29 203043367.36
Note: The transition from water resource fees to taxes was implemented in December 2024. The
collection period for 2024 spanned one month whereas the collection period for 2025 covers a full 12
months; consequently the water resource tax for 2025 shows a significant month-over-month increase.
(41) Selling and distribution expenses
Items Current period Previous period
Import and export agency fee 41257018.21 52584810.12
Salary and benefits 57918567.27 67395074.92
Storage and warehousing fee 1717823.82 1977289.68
Others 35945383.84 20681443.05
Total 136838793.14 142638617.77
(42) General and administrative expenses
Items Current period Previous period
Salary and benefits 307157438.54 351493964.20
Insurance fee 17200072.53 12995462.13
Depreciation 62568460.35 55331155.82
Notes to the financial statements Page 105Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items Current period Previous period
Repair expense 3287105.74 4037864.04
Professional service expenses 10182784.99 13588178.36
Information System Service Fee 29868489.03 35322109.80
Business Travel Expenses 197040.78 2563843.56
Others 241758150.53 227455833.92
Total 672219542.49 702788411.83
(43) Research and development expenses
Items Current period Previous period
Depreciation materials and
90978954.1686415509.29
compensation etc.Total 90978954.16 86415509.29
(44) Financial expenses
Items Current period Previous period
Interest expenses 394193802.90 384713981.73
including: Interest expenses for lease
66502253.0962948951.58
liabilities
Less: Interest income 32518614.84 43019766.05
Exchange losses 55283349.61 -112286393.26
Others 11043592.37 10923494.40
Total 428002130.04 240331316.82
(45) Other income
Items Current period Previous period
Additional VAT Deduction 59045361.08 48812224.61
VAT Refund upon Collection 40759445.15 86963574.36
Central Government Environmental Protection
Award Fund 21087999.97 21088000.00
Gratuitous Transfer of Non-monetary Assets 19047472.00 19009956.00
Flue Gas Desulfurization and Denitrification Project
for No.5 Furnace Group & 4B Coke Oven at Plate 4092000.00 4092000.00
Ironmaking Plant
Notes to the financial statements Page 106Bengang Steel Plates Co. Ltd.Notes to the financial statements
2020 Ecological Civilization Construction Special
Project (Special Steel EAF Upgrading Project) 4000000.00 4000000.00
Triple Dust Removal Retrofit for Roof Hoods of
No.4/5/6 Converters at Plate Steelmaking Plant 2922000.00 2922000.00
Plate factory area converter Gas Recovery and
Efficiency Improvement Project 2420000.03 2420000.00
Dust Removal Retrofit for Hot Metal Pretreatment
Station of Steelmaking Converters 1932600.00 1932600.00
Advanced Treatment Project of Carbon Fiber
Wastewater in Dongfeng Plant Area of Plate Coking 1900000.00 1900000.00
Plant
2021 Intellectual Manufacturing Strong Province
Special Fund 1620000.00 1620000.00
2021 Intellectual Manufacturing Strong Province
Special Fund（Digital and Networked Upgrade 960000.00 960000.00）
Government Subsidies received by the Sheet Material
R&D Institute 817792.79
Fiscal Support Funds 630000.00 110000.00
Desulfurization and Denitrification Project of
Coal-fired Boiler in High-pressure Workshop of 600000.00 600000.00
Bengang Power Plant
Second Sintering Finishing Dust Removal Ultra-low
Emission Reconstruction Project 410000.00 410000.00
Refund of Handling Fees for Withholding and
Remitting Individual Income Tax 337020.19 401253.23
Benxi Steel Automotive Sheet Engineering
Laboratory Construction Project 319076.00 -745133.80
2021 Liaoning Province Central-Guided Local
Science and Technology Development Funds: Second 300000.00
Batch of Planned Projects
2022: Digital Liaoning—A Strong Province of
Intelligent Manufacturing 300000.00
Municipal Funding Subsidy for Enterprise
Operations-related Patent Navigation Projects 200000.00
Liaoning Provincial Intellectual Property Office:
High-Value Patent Support Fund Subsidy 200000.00
2019 Provincial-Level Skills Master Workstation Fee 100000.00 100000.00
Design and Physicochemical Properties of
Metallurgical Slag Systems for Rare Earth 85200.00 15175.50
Steelmaking
Mechanism and Control of Rare Earth Oxysulfides on
Plasticization Behavior in Automotive Steels 35243.00 70200.00
2018 Municipal-Level Master Skills Workshop
Expenses 31727.00
2022 Liaoning Provincial Natural Science Foundation
Program Funds 28400.00
2019 Municipal-Level Master Skills Workshop
Expenses 25620.10
2021 Municipal-Level Skills Master Workstation Fee 20764.57 56454.88
2022 Provincial-Level Skills Master Workstation Fee 20225.43 67743.97
Xingliao Talent Program Government Grant 3600.00 46500.00
Special Incentive Funds for Business Stable
development Measures 2184600.00
Industrial Economy Stabilization and Growth
Incentive Fund 50000.00
Science & Technology Funds 300000.00
Development of Gen-3 AHSS for Vehicles 580000.00
Notes to the financial statements Page 107Bengang Steel Plates Co. Ltd.Notes to the financial statements
2020 Provincial-Level Skills Master Workstation Fee 63799.16
Liaoning Provincial Standardization Subsidy 10000.00
High-tech Enterprise Incentive Funds 100000.00
Total 164261547.31 200140947.91
(46) Investment income
Items Current period Previous period
Income on long-term equity investment by equity method -2143337.68 -1497124.69
Gain from debt restructuring 17512835.36 6496818.35
Others -26326290.61 -47967315.58
Total -10956792.93 -42967621.92
(47) Credit impairment loss
Items Current period Previous period
Loss from bad debts of account receivable 11356229.85 -51156620.60
Loss from bad debts of other receivables 8298098.74 1013615.40
Total 19654328.59 -50143005.20
(48) Asset impairment loss
Items Current period Previous period
Inventory and contract fulfillment cost
286889208.89278486334.42
impairment loss
Fixed assets impairment loss 17044069.90
Total 303933278.79 278486334.42
(49) Assets disposal gains
The amount recognized in
Items Current period Previous period
non-recurring profit
Fixed assets 3008.85 13020778.49 3008.85
Total 3008.85 13020778.49 3008.85
Notes to the financial statements Page 108Bengang Steel Plates Co. Ltd.Notes to the financial statements
(50) Non-operating income
The amount
Items Current period Previous period recognized in
non-recurring profit
Non-current assets scrapped gains 2382736.20 3307408.92 2382736.20
Compensation for breach of
13607613.048649121.9713607613.04
contract
Unpayable accounts payable
147073.92208933.55147073.92
(Debt settlement income)
Others 7475439.84 33623658.14 7475439.84
Total 23612863.00 45789122.58 23612863.00
(51) Non-operating expense
The amount
Items Current period Previous period recognized in
non-recurring profit
Non-current assets scrapped loss 47144692.71 52327212.31 47144692.71
Administrative Fines and Late
10000.0010000.00
Payment Fees
Compensation liquidated
10856164.001544793.5710856164.00
damages and fines
Others 5195080.64 835992.86 5195080.64
Total 63205937.35 54707998.74 63205937.35
(52) Income tax expenses
1. Income tax expense
Items Current period Previous period
Income tax payable for the current year 62925475.32 73650531.92
Deferred income tax 579815.01 16786257.16
Notes to the financial statements Page 109Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items Current period Previous period
Total 63505290.33 90436789.08
2. Accounting profit and income tax expense adjustment process
Items Current period
Total profit -3791909693.52
Income tax expense calculated according to the official or applicable tax -568784358.54
rate
Effect of different tax rates applied by subsidiaries 10885221.49
Effect of adjustment of the income tax expense of prior period 389756.93
Effect of non-taxable income -9301605.75
Effect of non-deductible costs expenses or losses 635791.76
Effect of use of deductible losses of unrecognized deferred tax asset of -3122208.63
prior period
Effect of deductible temporary differences or deductible losses of 587974915.55
unrecognized deferred tax assets of current period
Effect of tax rate changes on the opening balance of deferred tax
assets/liabilities
Others 44827777.52
Income tax expenses 63505290.33
(53) Notes of statement of cash flows
1. Cash related to operating activities
（1）Cash received related to other operating activities
Items Current period Previous period
Collection of current accounts and advance
25154240.0020707880.77
payment on behalf
Interest income 32518614.84 43019928.42
Special subsidy income 76130817.09 61603389.34
Non-operating income 8089841.48 45108931.60
Notes to the financial statements Page 110Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items Current period Previous period
Others 69557902.36 72901959.17
Total 211451415.77 243342089.30
（2）Cash paid related to other operating activities
Items Current period Previous period
Current accounts 21458523.69 31632625.15
Administrative expenses 150737433.31 160290483.72
Selling expenses 46171361.15 43283792.38
Charges 3762378.42 3227037.36
Others 193898385.46 167670609.80
Total 416028082.03 406104548.41
2. Cash related to financing activities
（1）Other cash received in relation to financing activities
Item Current period Previous period
Notes letter of guarantee and letter of credit
margins 3237423685.03 3808123889.76
Recovery of short-term borrowing funds for
designated payments
Total 3237423685.03 3808123889.76
（2）Other cash paid in relation to financing activities
Item Current period Previous period
Notes letter of guarantee and letter of credit
margins 3036021201.32 4871226556.86
Short-term borrowing funds for designated
payments
Lease payments 154634911.14 68842727.36
Total 3190656112.46 4940069284.22
(54) Supplementary details of statement of cash flows
Notes to the financial statements Page 111Bengang Steel Plates Co. Ltd.Notes to the financial statements
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 -3855414983.85 -4960117417.26
Add: Credit impairment loss 19654328.59 -50143005.20
Asset impairment loss 303933278.79 278486334.42
Depreciation of fixed assets 1680747982.09 1635677342.74
Depreciation of right of use assets 93918689.87 77920658.71
Amortization of intangible assets 11121055.91 9634760.52
Amortization of Long-term Deferred Expenses
Losses proceeds from disposal of PPE intangible assets
-3008.85-13020778.49
and other long-term assets (Earnings marked“－”)
Scrapped losses from fixed assets (Earnings
44761956.5149019803.39
marked“－”)
Losses in fair value change (Earnings marked“－”)
Financial expenses (Earnings marked“－”) 449477152.51 272427588.47
Investment losses (Earnings marked“－”) 10956792.93 42967621.92
Deferred tax assets reduction (Addition marked“－”) -137604637.55 93801445.51
Deferred tax liabilities increased (Reduction
138184452.56-77015188.35
marked“－”)
Reduction of inventory (Addition marked“－”) 677000599.26 157980745.75
Operating receivable items reduction (Addition
-534373914.571927753242.95
marked“－”)
Operating payable items increase (Less marked"－") -691248364.58 1654268244.56
Others 71852.58 646594.61
Net cash flows generated from operating activities -1788816767.80 1100287994.25
2. Payments of investing and financing activities not
involving cash:
Liabilities transferred to capital
Convertible bonds due within one year
Notes to the financial statements Page 112Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items Current period Previous period
Fixed assets financed by leasing
3. The net increase in cash and cash equivalents:
Ending balance of cash 287470306.31 1590205218.91
Less: Beginning balance of cash 1590205218.91 1199685408.38
Add: Ending balance of cash equivalents
Less: Opening balance of cash equivalents
The net increase in cash and cash equivalents -1302734912.60 390519810.53
2. The structure of cash and cash equivalents
Items Current period Previous period
1. Cash 287470306.31 1590205218.91
Including: Cash on hand
Bank deposits available on demand 287470306.31 1590205218.91
2. Cash equivalents
Including: Cash and cash equivalents limited to use by
the parent company of other subsidiary in
the group
3. Ending Balance of Cash and Cash Equivalents 287470306.31 1590205218.91
Including: Cash and cash equivalents held but not
available for use by the parent company or
other subsidiaries within the group
(55) Foreign currency monetary items
1. Foreign currency monetary items
Ending balance in Ending balance translated
Item Exchange rate
foreign currency to RMB
Cash and cash equivalents 92017493.96
Including: USD 13091494.13 7.0288 92017493.96
Non-current liabilities due
1038284.80
within one year
Notes to the financial statements Page 113Bengang Steel Plates Co. Ltd.Notes to the financial statements
Ending balance in Ending balance translated
Item Exchange rate
foreign currency to RMB
Including: JPY 23176000.00 0.0448 1038284.80
Long-term loans 1038284.80
Including: JPT 23176000.00 0.0448 1038284.80
Accounts receivable 663734936.95
Including: USD 94430761.57 7.0288 663734936.95
Accounts payable 42678053.96
Including: USD 6071883.39 7.0288 42678053.96
6. Research and Development Expenses
1. Presented by Nature of Expense
Items Current period Previous period
Depreciation materials
90978954.1686415509.29
salaries etc.Professional Service Fee 3700000.00
Total 94678954.16 86415509.29
Including: Expensed R&D
90978954.1686415509.29
Expenditure
Capitalized R&D
3700000.00
Expenditures
2. Development expenditures for R&D projects that meet the criteria for capitalization
Increase during Decrease during
the current period the current period
Item 2024/12/31 Internal
Development Recognized as
2025/12/31
Expenditure Intangible assets
Sheet
Configuration-based 3700000.00 3700000.00
CPK Analysis
Total 3700000.00 3700000.00
Notes to the financial statements Page 114Bengang Steel Plates Co. Ltd.Notes to the financial statements
7. Changes in the scope of consolidation
(1) Changes in the Scope of Consolidation Due to Other Reasons
1. Establishment of a New Subsidiary: On March 28 2025 Bengang Steel Plates Co. Ltd.
together with its related party Angang Green Gold Industry Development Co. Ltd.jointly contributed RMB 60 million to establish Green Gold (Benxi) Renewable
Resources Co. Ltd.
2. Liquidation of Subsidiary: Changchun Bensteel Steel Sales Co. Ltd. was dissolved on
November 11 2025 with the unanimous consent of all shareholders.
8. Interests in other entities
(1) Equity in subsidiaries
1. Constitution of enterprise group
Shareholding
Principal
Name of Registered Registrati Nature of ratio(%) Acquisition
place of
subsidiary Capital on place Business Dire Indire method
business
ct ct
Guangzhou
Bengang Steel 200 million Guangzh Guangzhoou u Sales 100 Establishment& Iron Trading
Co. Ltd
Shanghai
Bengang
Metallurgy 230 million Shanghai Shanghai Sales 100 Establishment
Science and
Technology Co.Ltd
Dalian
Benruitong
Automobile 100 million Dalian Dalian Manufacturing 65 EstablishmentMaterial
Technology Co.Ltd
Bengang Business
POSCO Manufacturi combination1.92 billion Benxi Benxi ng 75 underCold-rolled common
Sheet Co. Ltd. control
Green Gold
(Benxi)
60 million Benxi Benxi ManufacturiRenewable ng 51 Establishment
Resources Co.Ltd.Yantai Bengang 200 million Yantai Yantai Sales 100 Business
Steel Sales Co. combination
Notes to the financial statements Page 115Bengang Steel Plates Co. Ltd.Notes to the financial statements
Shareholding
Principal
Name of Registered Registrati Nature of ratio(%) Acquisition
place of
subsidiary Capital on place Business Dire Indire method
business
ct ct
Ltd. under
common
control
Tianjin Business
Bengang Steel combination200 million Tianjin Tianjin Sales 100 under
Trading Co. common
Ltd. control
Benxi Bengang
Steel & Iron 30 million Benxi Benxi Sales 100 Establishment
Sales Co. Ltd.Shenyang
Bengang
Metallurgy 230 million Shenyang Shenyang Sales 100 Establishment
Science and
Technology Co.Ltd
Business
North Hengda
Logistics Co. 150 million Benxi Benxi Manufacturi
combination
ng 100 underLtd. common
control
Important non-wholly owned subsidiaries
Dividend
Proportion of Profits and losses declared to Ending
Name of the subsidiaries non-controlling
attributing to distribute to balance of
interests non-controllingshareholders non-controlling non-controllingshareholders interests
Bengang POSCO
Cold-rolled Sheet Co.Ltd. 25.00% 78278160.42 60185989.14 614781199.15
Notes to the financial statements Page 116Bengang Steel Plates Co. Ltd.Notes to the financial statements
2. Key financial information of significant but not wholly-owned subsidiaries
Name of 2025/12/31 2024/12/31
the
Current assets Non-current Total assets Current Non-curren Non-current Current Non-curren
subsidiarie assets liabilities t liabilities
Total liabilities Current assets assets Total assets liabilities t liabilities Total liabilities
s
Bengang
POSCO
Cold-rolled 5416328740.2 1023071233.7 6439399973.9 3980275177.4 3980275177.4 6390756526.7 986052997.6 7376809524.3 4990053412.8 4990053412.8
Sheet Co.Ltd. 1 8 9 0 0 2 2 4 6 6
Current period Previous period
Total Cash flow from Total Cash flow from
Name of the subsidiaries Operating
Net profit comprehensive operating
Operating comprehensive operating
income income activities
Net profit
income income activities
Bengang POSCO
Cold-rolled Sheet Co.Ltd. 7302924455.99 313112641.68 313112641.68 96386958.56 8387472486.78 300929945.71 300929945.71 400460284.37
Notes to the financial statements Page 117Bengang Steel Plates Co. Ltd.Notes to the financial statements
(2) Interests in joint ventures or associated enterprises
1. Summarized financial information of insignificant joint ventures and associates
2025/12/31 or current 2024/12/31 or previous
period period
Associated enterprises:
Total book value of investments 43269884.04 45413221.72
Total of the following items calculated
based on shareholding ratio
-Net profit -2143337.68 -1497124.69
-Other comprehensive income
-Total comprehensive income -2143337.68 -1497124.69
9. Government Subsidies
(1) Government grants included in current profit or loss
Accounting subjects Current period Previous period
Other income 104879166.04 150827470.07
Total 104879166.04 150827470.07
Notes to the financial statements Page 118Bengang Steel Plates Co. Ltd.Notes to the financial statements
(2) Liabilities involving government subsidies
Amounts
recognized in Amountsrecognized in Offset costs or
Liabilities 2024/12/31 Addition non-operating expenses Other 2025/12/31income during other income during the changes Asset-related/income-related
the current during the current period
period current period
Deferred
173919087.47 47760050.00 63479720.89 158199416.58 Asset-related/income-related
income
Notes to the financial statements Page 119Bengang Steel Plates Co. Ltd.Notes to the financial statements
10. Risks associated with financial instruments
(1) Various risks arising from financial instruments
In the course of its operations the Company is exposed to various financial risks: credit
risk liquidity risk and market risk (including currency risk interest rate risk and other
price risks). These financial risks and the risk management policies adopted by the
Company to mitigate them are described below:
1. Credit Risk
Credit risk refers to the risk that a counterparty fails to discharge a contractual obligation
resulting in a financial loss to the Company.
2. Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial
obligations on the maturity date.The Company’s policy is to ensure that it maintains sufficient cash to meet its maturing
obligations. Liquidity risk is managed centrally by the Company's treasury department.By monitoring cash balances highly liquid marketable securities and rolling forecasts of
cash flows for the next 12 months the treasury department ensures the Company has
adequate funds to settle its debts under all reasonably foreseeable circumstances. At the
same time the Company continuously monitors compliance with borrowing agreements
and obtains commitments from major financial institutions to provide sufficient standby
funding to meet both short-term and long-term capital requirements.The Company's various financial liabilities are listed as follows by maturity date with
undiscounted contractual cash flows:
Notes to the financial statements Page 120Bengang Steel Plates Co. Ltd.Notes to the financial statements
2025/12/31
Items Immediate Total undiscounted
Within 1 year 1-2 years 2-5 years Over 5 years Book value
repayment contract amount
Short-term 333660470.12 333660470.12 333660470.12
loans
Notes 12962287642.88 12962287642.88 12962287642.88
payable
Accounts 2667236412.66 2667236412.66 2667236412.66
payable
Other 1695840066.44 900248576.00 179455553.68 2775544196.11 2775544196.11
payables
Long-term
loans 927300000.00 2326771934.40 3687697823.71 6941769758.11 6941769758.11
(including
long-term
loans due
within one
year)
Lease
liabilities 348084227.49 420003905.75 817727027.56 1001705172.32 2587520333.13 2587520333.13
(including
lease
liabilities due
within one
year)
Bonds
payable 5665550635.00 5665550635.00 5665550635.00
Notes to the financial statements Page 121Bengang Steel Plates Co. Ltd.Notes to the financial statements
2025/12/31
Items Immediate Total undiscounted
Within 1 year 1-2 years 2-5 years Over 5 years Book value
repayment contract amount
(including
bonds
payable due
within one
year)
Total 24599959454.59 3647024416.15 4684880404.95 1001705172.32 33933569448.01 33933569448.01
2024/12/31
Items Immediate Total undiscounted
Within 1 year 1-2 years 2-5 years Over 5 years Book value
repayment contract amount
Short-term
371055490.50371055490.50371055490.50
loans
Notes
12982703669.8612982703669.8612982703669.86
payable
Accounts
2680864210.1561748259.4819146969.732761759439.362761759439.36
payable
Other
1703827958.01394969845.27255896396.732354694200.012354694200.01
payables
Long-term
loans
(including 805270731.20 922270731.20 1969670731.20 3697212193.60 3697212193.60
Notes to the financial statements Page 122Bengang Steel Plates Co. Ltd.Notes to the financial statements
2024/12/31
Items Immediate Total undiscounted
Within 1 year 1-2 years 2-5 years Over 5 years Book value
repayment contract amount
long-term
loans due
within one
year)
Lease
liabilities
(including
lease
liabilities due 118242710.82 109583860.29 782383488.53 741944237.69 1752154297.33 1752154297.33
within one
year)
Bonds
payable
(including
bonds
payable due 106989474.64 5569899459.53 5676888934.17 5676888934.17
within one
year)
Total 18768954245.18 7058472155.77 3027097586.19 741944237.69 29596468224.83 29596468224.83
Notes to the financial statements Page 123Bengang Steel Plates Co. Ltd.Notes to the financial statements
3. Market Risk
Market risk of financial instruments refers to the risk that the fair value or future
cash flows of financial instruments fluctuate due to changes in market prices
including exchange rate risk interest rate risk and other price risks.
（1）Interest rate risk
Interest rate risk refers to the risk that the fair value of a financial instrument or
future cash flows will fluctuate due to changes in market interest rates.Fixed-rate and floating-rate interest-bearing financial instruments expose the
Company to fair value interest rate risk and cash flow interest rate risk respectively.The Company determines the relative proportions of fixed-rate and floating-rate
instruments based on prevailing market conditions and maintains an appropriate
mix of these instruments through regular reviews and monitoring. When necessary
the Company utilizes interest rate swaps to hedge against interest rate risk.
（2）Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flows of
financial instruments will fluctuate due to changes in foreign exchange rates.The exchange rate risk borne by the Company is mainly related to the US dollar
Hong Kong dollar Japanese yen and euro. Except for the Company's small amount
of raw material purchases and finished product sales settled in US dollars Hong
Kong dollars Japanese yen and euros the Company's other major business
activities are settled in RMB. As of December 31 2025 the assets or liabilities
described in the following table are the balances of US dollars Hong Kong dollars
Japanese yen and euros shown in the items:
Items 2025/12/31 2024/12/31
Cash and cash equivalents - USD 92017493.96 326239933.43
Cash and cash equivalents - HKD 192.36
Non-current liabilities due within one
year - JPY 1038284.80 1070731.20
Long-term loans - JPY 1038284.80 2141462.40
Accounts receivable – USD 663734936.95 253981286.89
Accounts payable - USD 42678053.96 59412915.21
Total 800507054.47 642846521.49
(2) Transfer of financial assets
Notes to the financial statements Page 124Bengang Steel Plates Co. Ltd.Notes to the financial statements
1. Transfer of financial assets
Financial asset Transferred financial assets Information of
transfer method Basis of derecognition
Nature Amount derecognition
Retains substantially
Bill all of its risks and
endorsement/bill Notes 226619630.11 Not derecognized rewards including the
discount Receivable default risk associated
with it
Bill Accounts Almost all of its risks
endorsement/bill Receivable 4582118003.79 Derecognized and rewards have been
discount Financing transferred
Total 4808737633.90
Notes to the basis of derecognition: As of December 31 2025 the maturity date of
accounts receivable financing is 1 to 12 months. According to the relevant
provisions of the Bills of Exchange Law if the accepting bank refuses to pay the
holder has the right to claim against the Company. The Company believes that the
Company has transferred almost all its risks and rewards and therefore fully
terminate the recognition of its and related settled accounts payable and confirm
the discount fees.
2. Financial assets derecognized due to transfer
Methods of transferring Amount of Gains or losses related
Items derecognition to derecognition
financial assets
Accounts
Bill endorsement/bill
receivable 4582118003.79 25910295.40
discounting
financing
Total 4582118003.79 25910295.40
11. Disclosure of fair value
The input value used in fair value measurement is divided into three levels:
The input value of the first level is the unadjusted quotation of the same asset or liability that can
be obtained on the measurement date in an active market.The input value of the second level is the input value of the related assets or liabilities that is
directly or indirectly observable except the input value of the first level.The third level of input value is the unobservable input value of related assets or liabilities.Notes to the financial statements Page 125Bengang Steel Plates Co. Ltd.Notes to the financial statements
The level to which the fair value measurement result belongs is determined by the lowest level to
which the input value that is important to the fair value measurement as a whole belongs.
(1) Fair value of assets and liabilities measured at fair value at the end of the period
Fair value at the end of the period
Items First level Second level Third level fairfair value fair value value
measurement measurement measurement Total
1. Continuous fair value
measurement
Accounts receivable financing 331321177.27 331321177.27
Other equity instrument
890420831.77890420831.77
investments
12. Related parties and related transactions
(1) Details of parent company
Name of parent Place of Business Registered Share Voting
company Registry nature capital proportion(%) rights (%)
Benxi Steel & Iron Benxi RMB 9.83
Manufacturing 58.65 58.65
(Group) Co. Ltd. Liaoning billion
The ultimate controlling party of the Company: Ansteel Group Co. Ltd.
(2) Details of the Company’s subsidiariesFor details of the Company’s subsidiaries please refer to Note 8 “Equity in OtherEntities”.
（3） The company's joint ventures and associates
For details of the Company's important joint ventures or associates please refer to Note 8
“Equity in Other Entities”.Other joint ventures or associates that had related-party transactions with the Company
during the current period or had balances resulting from related-party transactions with
the Company in prior periods are described below:
Notes to the financial statements Page 126Bengang Steel Plates Co. Ltd.Notes to the financial statements
Name of joint venture or associated enterprise Relationship
Shenyang Xiangyu New Materials Technology Co. Ltd. Associate
（4） Other related parties
Name of other related parties Relationship between other relatedparties and the Company
Bengang Group Co. Ltd. Parent company's controllingshareholder
Benxi Iron and Steel (Group) Co. LTD Parent company
Bengang Stainless Steel Cold Rolling Dandong Co. Ltd. Same parent company
Bengang Gaoyuan Industrial Development Co. Ltd. Same parent company
Bengang Group Dalian Refractory Materials Co. Ltd Same parent company
Benxi Aike Hydraulic Sealing Co. Ltd. Same parent company
Benxi Dongfenghu Steel Resource Utilization Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Real Estate Development Co.Ltd. Same parent company
Benxi Iron and Steel (Group) Engineering Construction
Supervision Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Machinery Manufacturing Co.Ltd. Same parent company
Benxi Iron and Steel (Group) Construction Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Mining Construction Engineering
Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Mining Liaoyang Ma'erling Pellet
Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Mining Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Thermal Power Development
Co. Ltd. Same parent company
Benxi Steel & Iron (Group) Steel & Iron Process and Logistics
Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Industrial Development Co. Ltd. Same parent company
Benxi Xihu Metallurgical Furnace Material Co. Ltd. Same parent company
Benxi Weld Phosphate Overlay Manufacturing Co. Ltd. Same parent company
Benxi New Industrial Development Co. Ltd. Same parent company
Liaoning Hengtai Heavy Machinery Co. Ltd. Same parent company
Liaoning Hengtong Metallurgical Equipment Manufacturing
Co. Ltd. Same parent company
Liaoning Metallurgical Technician College Same parent company
Notes to the financial statements Page 127Bengang Steel Plates Co. Ltd.Notes to the financial statements
Name of other related parties Relationship between other relatedparties and the Company
Liaoning Metallurgical Vocational Technical College Same parent company
Liaoning Yitong Machinery Manufacturing Co. Ltd. Same parent company
Beijing Tianhongshan Hotel Co. Ltd. Same parent company
Liaoning Slag Micro-powder Co. Ltd. Same parent company
Bengang Group International Economic and Trade Co. Ltd. Belongs to Bengang Group Co.Ltd.Benxi Northern Iron Industry Co. Ltd. Belongs to Bengang Group Co.Ltd.Benxi Beiying Iron and Steel (Group) Co. Ltd. Belongs to Bengang Group Co.Ltd.Benxi Iron and Steel (Group) Mining Liaoyang Jiajiaobao Iron Belongs to Bengang Group Co.Mine Co. Ltd. Ltd.? Liaoning Hengyi Steel Trade Co. Ltd. Belongs to Bengang Group Co.Ltd.Liaoning Lide Internet of Things Co. Ltd. Belongs to Bengang Group Co.Ltd.Tianjin Bengang Plate Processing & Distribution Co. Ltd. Belongs to Bengang Group Co.Ltd.Benxi Beifang Steel Rolling Co.Ltd. Belongs to Bengang Group Co.Ltd.Benxi Iron and Steel (Group) Mining Yanjia Valley Limestone Belongs to Bengang Group Co.Mine Co. Ltd. Ltd.Angang (Hangzhou) Automotive Materials Technology Co.Ltd. Belongs to Angang Group Co. Ltd.Angang (Liaoning) Materials Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Electrical Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Scrap Resources (Anshan) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Processing & Distribution (Dalian) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Processing & Distribution (Changchun) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Distribution (Hefei) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Distribution (Wuhan) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Rope Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Engineering Production Operations & Maintenance
(Anshan) Co. Ltd. Belongs to Angang Group Co. Ltd.
Angang Steel Company Limited Belongs to Angang Group Co. Ltd.Angang Chemical Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Group Railway Equipment Checking & Repairing
Company Belongs to Angang Group Co. Ltd.Angang Group International Economic & Trade Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Group International Economic & Trade Co. Ltd.Benxi Branch Belongs to Angang Group Co. Ltd.Notes to the financial statements Page 128Bengang Steel Plates Co. Ltd.Notes to the financial statements
Name of other related parties Relationship between other relatedparties and the Company
Angang Group Mining Gongchangling Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Group Automation Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Construction Group Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Mining Machinery Manufacturing Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Green Resources Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Energy Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Automobile Transportation Co.Ltd. Belongs to Angang Group Co. Ltd.Angang Industrial Group Metallurgical Machinery Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Shuangsheng (Anshan) Fan Co. Ltd Belongs to Angang Group Co. Ltd.Ansteel Water Technology (Liaoning) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Heavy Machinery Design & Research Institute Co.Ltd. Belongs to Angang Group Co. Ltd.Angang Heavy Machinery Co. Ltd. Belongs to Angang Group Co. Ltd.Anshan Angang International Travel Agency Co. Ltd. Belongs to Angang Group Co. Ltd.Anshan Iron & Steel Metallurgical Furnace Material
Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Anshan Jianbo Engineering Testing Co. Ltd. Belongs to Angang Group Co. Ltd.Benxi Steel and Iron(Group)Tengda Co.Ltd. Belongs to Angang Group Co. Ltd.Benxi Iron and Steel (Group) Information Automation Co.Ltd. Belongs to Angang Group Co. Ltd.DeLin Industrial Products Co. Ltd. Belongs to Angang Group Co. Ltd.DeLin Land Port Supply Chain Services Co. Ltd. Belongs to Angang Group Co. Ltd.Guangzhou Angang Steel Processing Co. Ltd. Belongs to Angang Group Co. Ltd.Lingyuan Iron & Steel Group Co. Ltd. Belongs to Angang Group Co. Ltd.Pangang Group Jiangyou Great Wall Special Steel Co. Ltd. Belongs to Angang Group Co. Ltd.Panzhong Yihong Metal Products (Chongqing) Co. Ltd. Belongs to Angang Group Co. Ltd.Shenyang Angang International Trade Co.Ltd. Belongs to Angang Group Co. Ltd.Tianjin Angang Steel Processing & Distribution Co. Ltd. Belongs to Angang Group Co. Ltd.Changchun FAW Angang Steel Processing & Distribution Co.Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Processing & Distribution (Zhengzhou) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Group Beijing Research Institute Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Group Mining Co. LTD Belongs to Angang Group Co. Ltd.Notes to the financial statements Page 129Bengang Steel Plates Co. Ltd.Notes to the financial statements
Name of other related parties Relationship between other relatedparties and the Company
Ansteel Group Co. Ltd Belongs to Angang Group Co. Ltd.Angang Green Gold Industry Development Co. Ltd. Belongs to Angang Group Co. Ltd.Angang ShenYang Steel Service Center Co.Ltd. Belongs to Angang Group Co. Ltd.Angang Industrial Group (Anshan) Equipment Operation &
Maintenance Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Tendering Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Cast Steel Co. Ltd. Belongs to Angang Group Co. Ltd.Anshan Iron and Steel Group Co. Ltd. Belongs to Angang Group Co. Ltd.Anshan Iron and Steel Labor Research Institute Technology
Co. Ltd. Belongs to Angang Group Co. Ltd.Anzi (Tianjin) Financial Leasing Co. Ltd. Belongs to Angang Group Co. Ltd.Chengdu Xingyun Smart Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Pangang Group Chengdu Vanadium & Titanium Resources
Development Co. Ltd. Belongs to Angang Group Co. Ltd.Yantai Angang International Trading Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Guangzhou Automotive Steel Co. Ltd. Associate of Ansteel Group
Angang Group Engineering Technology Co. Ltd. Associate of Ansteel Group
Angang Mining Construction Co. Ltd. Associate of Ansteel Group
Beijing Zhongliangang E-commerce Co. Ltd. Associate of Ansteel Group
Bengang Electrical Co. Ltd. Associate of Ansteel Group
Bengang Automotive Transport Co. Ltd. Associate of Ansteel Group
Benxi Gaoxin Drilling Tools Manufacturing Co. Ltd. Associate of Ansteel Group
Heilongjiang Longmei Mining Group Co. Ltd. Associate of Ansteel Group
Hongda Engineering Technology (Liaoning) Co. Ltd. Associate of Ansteel Group
Pangang Group Engineering Technology Consulting Co. Ltd. Associate of Ansteel Group
Shenyang Xiangyu New Materials Technology Co. Ltd. Associate of Ansteel Group
China Ordins Group Co.Ltd. Associate of Ansteel Group
MCC Northern Engineering & Technology Co. Ltd. Associate of Ansteel Group
MCC South Engineering & Technology Co. Ltd. Associate of Ansteel Group
MCC-CEI Engineering Technology Co. Ltd. Associate of Ansteel Group
Benxi Yuneng Thermal Power Co. Ltd. Joint Ventures of Ansteel Group
Notes to the financial statements Page 130Bengang Steel Plates Co. Ltd.Notes to the financial statements
（5） Related-party transactions
1. Related party transactions of purchasing and selling goods and services
Purchasing goods and services
Related parties Content of relatedtransactions Current period Previous period
Angang (Liaoning) Materials Professional
Technology Co. Ltd. Service Fee 251698.11 907452.84
Angang (Liaoning) Materials Engineering
Technology Co. Ltd. Costs 218000.00
Angang Electrical Co. Ltd. Repair costs 1565600.00 1088249.99
Angang Scrap Resources (Anshan) Ingredients and
Co. Ltd. Auxiliary 366135058.71 1124802017.73Materials
Angang Steel Processing &
Distribution (Dalian) Co. Ltd. Raw material 653381.03
Angang Steel Processing &
Distribution (Dalian) Co. Ltd. Processing Fee 374521.01
Angang Steel Processing &
Distribution (Changchun) Co. Ltd. Processing Fee 1317197.42 1041620.63
Angang Steel Processing &
Distribution (Changchun) Co. Ltd. Storage Fee 2485.80
Angang Steel Processing &
Distribution (Zhengzhou) Co. Ltd. Processing Fee 131942.35
Angang Steel Distribution (Wuhan)
Co. Ltd. Raw material 395360.40
Angang Engineering Technology
Survey and Design Institute (Anshan) EngineeringCosts 53000.00Co. Ltd.Angang Steel Company Limited AuxiliaryMaterials 4418367.06 3161789.58
Ansteel Group Railway Equipment
Checking &Repairing Company Spare Parts 366360.00
Angang Group Beijing Research Professional
Institute Co. Ltd. Service Fee 825471.70 820000.00
Angang Group Engineering Engineering
Technology Co. Ltd. Costs 269633416.87 135490139.57
Angang Group Engineering
Technology Co. Ltd. Spare Parts 219963883.45
Angang Group Engineering
Technology Co. Ltd. Repair costs 933900.00 440000.00
Angang Group Engineering Safety production
Technology Co. Ltd. fee 115000.00
Angang Group International Raw and
Economic & Trade Co. Ltd. Auxiliary 148149910.36 186243033.73Materials
Agency Service
Angang Group International Fees Port
Economic & Trade Co. Ltd. Miscellaneous 43899447.77
Fees
Angang Group Energy-Saving General
Technology Services Co. Ltd. Contracting Fee 26723249.82
Ansteel Group Mining Co. LTD Raw material 184238740.56 308667259.88
Ansteel Group Co. Ltd Service Fee 5681680.10 208470.50
Angang Group Automation Co. Ltd. EngineeringCosts 1600000.00 51010000.00
Angang Construction Group Co. Ltd. EngineeringCosts 46591176.52
Notes to the financial statements Page 131Bengang Steel Plates Co. Ltd.Notes to the financial statements
Related parties Content of relatedtransactions Current period Previous period
Angang Construction Group Co. Ltd. EngineeringMaterials 27446205.00
Angang Mining Automotive
Transportation Co. Ltd. Shipping Fee 297872.02
Angang Green Gold Industry
Development Co. Ltd. Service Fees 365240.50
Angang Green Gold Industry Professional
Development Co. Ltd. Service Fee 167263.16
Angang Green Resources Technology
Co. Ltd. Shipping Fee 6772731.67
Angang Energy Technology Co. Ltd. AuxiliaryMaterials 3012051.56
Ansteel Automobile Transportation
Co.Ltd. Shipping Fee 4496389.98
Angang ShenYang Steel Service
Center Co.Ltd. Processing Fee 6261.54
Angang Industrial Group (Anshan)
Equipment Operation & Maintenance GeneralContracting Fee 6158477.20 9339387.20Co. Ltd.Angang Industrial Group
Metallurgical Machinery Co. Ltd. Spare Parts 9397223.24 9439932.17
Angang Industrial Group
Metallurgical Machinery Co. Ltd. Repair costs 1100790.00 1005720.00
Angang Industrial Group Co. Ltd. Service Fee 131145.12
Ansteel Shuangsheng (Anshan) Fan
Co. Ltd Repair costs 215000.00
Ansteel Water Technology (Liaoning) Professional
Co. Ltd. Service Fee 35491635.59
Ansteel Water Technology (Liaoning) Auxiliary
Co. Ltd. Materials 5169659.54
Angang Heavy Machinery Design & Engineering
Research Institute Co. Ltd. Costs 15865600.00
Angang Heavy Machinery Co. Ltd. Spare Parts 3257110.00 7304948.42
Angang Heavy Machinery Co. Ltd. Repair costs 377200.00
Anshan Angang International Travel Business Travel
Agency Co. Ltd. Service Fee 86877.48 3312463.08
Anshan Iron and Steel Group Co. Conference
Ltd. Expenses 1207518.87
Anshan Iron and Steel Labor
Research Institute Technology Co. Service Fee 15962.26 15622.64
Ltd.Anshan Iron & Steel Metallurgical
Furnace Material Technology Co. AuxiliaryMaterials 1990920.55 26520619.29Ltd.Anshan Jianbo Engineering Testing Engineering
Co. Ltd. Costs 197000.00 238000.00
Business
Beijing Tianhongshan Hotel Co. Ltd. Entertainment 1980.00 2064.00
Expenses
Bengang Stainless Steel Cold Rolling
Dandong Co. Ltd. Spare Parts 805659.29
Bengang Stainless Steel Cold Rolling Auxiliary
Dandong Co. Ltd. Materials 30751.50
Bengang Electrical Co. Ltd. AuxiliaryMaterials 182063694.41 182269804.01
Bengang Electrical Co. Ltd. Repair costs 26005217.60 14005845.47
Bengang Gaoyuan Industrial
Development Co. Ltd. Repair costs 4525056.28 5034146.00
Notes to the financial statements Page 132Bengang Steel Plates Co. Ltd.Notes to the financial statements
Related parties Content of relatedtransactions Current period Previous period
Bengang Gaoyuan Industrial
Development Co. Ltd. Spare Parts 2319400.00 1286267.43
Bengang Gaoyuan Industrial Engineering
Development Co. Ltd. Costs 1480000.00 7775792.86
Bengang Group Dalian Refractory Auxiliary
Materials Co. Ltd Materials 1830776.63 424516.33
Bengang Group International Agency Service
Economic and Trade Co. Ltd. Fee 2911013.71 78435468.93
Bengang Group Co. Ltd. Service Fee 1683867.92 1683819.02
Benxi Aike Hydraulic Sealing Co.Ltd. Spare Parts 6559159.49 7126761.45
Benxi Northern Iron Industry Co.Ltd. Raw material 5842124.09 201837093.10
Benxi Beiying Iron and Steel (Group)
Co. Ltd. Raw material 11511662558.65 10277907965.06
Benxi Beiying Iron and Steel (Group)
Co. Ltd. Fuel 1081232345.96 965352005.76
Benxi Beiying Iron and Steel (Group) Energy and
Co. Ltd. Power 714195035.43 646206682.53
Benxi Beiying Iron and Steel (Group) General
Co. Ltd. Contracting Fee 87918046.05 73598631.48
Benxi Beiying Iron and Steel (Group)
Co. Ltd. Service Fee 19203742.48 50307300.75
Benxi Beiying Iron and Steel (Group) Auxiliary
Co. Ltd. Materials 7400125.75 6607022.31
Benxi Beiying Iron and Steel (Group)
Co. Ltd. Repair costs 6713436.35 14147260.22
Benxi Dongfenghu Steel Resource Raw Materials
Utilization Co. Ltd. and Fuels 20379284.45 30237287.95
Benxi Dongfenghu Steel Resource Auxiliary
Utilization Co. Ltd. Materials 3442039.52
Benxi Iron and Steel (Group) Real
Estate Development Co. Ltd. Scrap steel 318201.40
Benxi Iron and Steel (Group)
Engineering Construction Supervision EngineeringCosts 3816036.07 1973663.48Co. Ltd.Logistics
Benxi Steel and Iron(Group)Tengda Transportation
Co.Ltd. and Port 497987838.29 628386401.75Miscellaneous
Fees
Benxi Steel and Iron(Group)Tengda
Co.Ltd. Fuel 56953.76
Benxi Iron and Steel (Group)
Machinery Manufacturing Co. Ltd. Spare Parts 174689669.40 150062415.65
Benxi Iron and Steel (Group) Auxiliary
Machinery Manufacturing Co. Ltd. Materials 29379319.62 25237506.53
Benxi Iron and Steel (Group) Engineering
Machinery Manufacturing Co. Ltd. Costs 25610600.00 16210213.36
Benxi Iron and Steel (Group)
Machinery Manufacturing Co. Ltd. Repair costs 18848577.95 32903771.81
Benxi Iron and Steel (Group) General
Machinery Manufacturing Co. Ltd. Contracting Fee 17484318.97 36841060.54
Benxi Iron and Steel (Group)
Machinery Manufacturing Co. Ltd. Scrap steel 6789954.71 5832726.17
Benxi Iron and Steel (Group) Labor
Machinery Manufacturing Co. Ltd. Outsourcing Fees 343515.90
Notes to the financial statements Page 133Bengang Steel Plates Co. Ltd.Notes to the financial statements
Related parties Content of relatedtransactions Current period Previous period
Benxi Iron and Steel (Group) Engineering
Construction Co. Ltd. Costs 200504950.06 227018510.96
Benxi Iron and Steel (Group) Raw Materials
Construction Co. Ltd. and Spare Parts 105468006.63 2823320.95
Benxi Iron and Steel (Group)
Construction Co. Ltd. Repair costs 43661964.36 56847478.43
Benxi Iron and Steel (Group)
Construction Co. Ltd. Service Fees 15060441.42 37928559.17
Benxi Iron and Steel (Group) General
Construction Co. Ltd. Contracting Fee 10517373.68
Benxi Iron and Steel (Group) Safety production
Construction Co. Ltd. fee 9358381.40 7021845.00
Benxi Iron and Steel (Group) Packaging
Construction Co. Ltd. Materials 4693653.22
Benxi Iron and Steel (Group) Mining
Construction Engineering Co. Ltd. Repair costs 18916783.00 17918450.86
Benxi Iron and Steel (Group) Mining Engineering
Construction Engineering Co. Ltd. Costs 16825950.32 15527451.16
Benxi Steel Group Mining Liaoyang
Jiajiaopu Iron Mine Co. Ltd. Scrap steel 238064.10
Benxi Steel Group Mining Liaoyang
Ma'erling Pelletizing Co. Ltd. Raw material 1955304447.95 2504269802.79
Benxi Iron and Steel (Group) Mining
Co. Ltd. Raw material 3847660317.52 4184701046.59
Benxi Iron and Steel (Group) Mining Auxiliary
Co. Ltd. Materials 359470037.95 390958275.91
Benxi Iron and Steel (Group) Mining
Co. Ltd. Scrap steel 14188073.88 15430896.37
Benxi Iron and Steel (Group)
Thermal Power Development Co. Office Expenses 803500.04 742575.27
Ltd.Benxi Iron and Steel (Group)
Thermal Power Development Co. Scrap steel 466787.20 104836.20
Ltd.Benxi Iron and Steel (Group)
Thermal Power Development Co. Heating Fee 414053.58 88239.27
Ltd.Benxi Steel Group Equipment
Engineering Co. Ltd. Repair costs 503936694.47 462560636.62
Benxi Steel Group Equipment Engineering
Engineering Co. Ltd. Costs 305070682.48 656078499.29
Benxi Steel Group Equipment
Engineering Co. Ltd. Spare Parts 114895235.76 17275400.90
Benxi Steel Group Equipment
Engineering Co. Ltd. Scrap steel 5904295.25 887757.15
Benxi Steel Group Industrial
Development Co. Ltd. Scrap steel 209449807.83 253156791.91
Benxi Steel Group Industrial
Development Co. Ltd. Raw material 12329245.13 14902053.03
Benxi Steel Group Industrial Auxiliary
Development Co. Ltd. Materials 11337146.08 13702927.50
Benxi Steel Group Industrial
Development Co. Ltd. Landscaping Fee 6490060.00 5016377.00
Benxi Steel Group Industrial
Development Co. Ltd. Repair costs 3816150.00 24274612.53
Benxi Steel Group Industrial
Development Co. Ltd. Shipping Fee 3305540.71 5580324.46
Benxi Steel Group Industrial Scrap and Waste
Development Co. Ltd. Materials 154732.70 187021.58
Notes to the financial statements Page 134Bengang Steel Plates Co. Ltd.Notes to the financial statements
Related parties Content of relatedtransactions Current period Previous period
Benxi Steel Group Information
Automation Co. Ltd. Spare Parts 152632589.58 7016883.54
Benxi Steel Group Information Engineering
Automation Co. Ltd. Costs 80243333.07 164712992.61
Information
Benxi Steel Group Information System
Automation Co. Ltd. Operations and 67712500.00 32650000.00
Maintenance Fees
Benxi Steel Group Information
Automation Co. Ltd. Repair costs 9054720.00 4391141.90
Benxi Iron and Steel (Group) Co. Security and Fire
LTD Protection Fees 42303277.02 35406267.46
Benxi Iron and Steel (Group) Co. Technical Service
LTD Fee 7927729.52 9377880.96
Benxi Iron and Steel (Group) Co.LTD Shipping Fee 2748343.11 216297.35
Benxi Iron and Steel (Group) Co. Engineering
LTD Costs 1122323.82 15954973.44
Benxi Iron and Steel (Group) Co. Energy and
LTD Power 112938.29 283478.17
Benxi Iron and Steel (Group) Co. Scrap and Waste
LTD Materials 13814.61 422431.09
Benxi Xihu Metallurgical Furnace Auxiliary
Material Co. Ltd. Materials 157315656.04 192903880.17
Benxi New Industrial Development
Co. Ltd. Service Fee 8276512.53 3505338.46
Benxi New Industrial Development Business
Co. Ltd. Entertainment 539773.50 610742.00Expenses
Benxi New Industrial Development
Co. Ltd. Scrap steel 22295.00
Benxi Yuneng Thermal Power Co. Energy and
Ltd. Power 139151210.07
Chengdu Pangang Hotel Co. Ltd. ConferenceExpenses 949039.62
Dalian Bolore Steel Pipe Co. Ltd. AuxiliaryMaterials 2043620.46
Delin Industrial Products Co. Ltd Spare Parts 55310468.89 21689081.34
Delin Industrial Products Co. Ltd AuxiliaryMaterials 25328205.57 9958263.76
Delin Land Port Supply Chain
Services Co. Ltd Other service fees 4583598.03 5364916.18
Delin Land Port Supply Chain
Services Co. Ltd Sales Service Fee 2417589.52 3103633.08
Delin Land Port Supply Chain
Services Co. Ltd Storage Fee 1539395.28 732650.90
Delin Land Port Supply Chain
Services Co. Ltd Raw material 548465.82
Liaoning Hengtai Heavy Machinery
Co. Ltd. Spare Parts 26352512.62 9935735.98
Liaoning Hengtai Heavy Machinery
Co. Ltd. Repair costs 23005807.00 24024198.00
Liaoning Hengtai Heavy Machinery Safety production
Co. Ltd. fee 2406000.00
Liaoning Hengtai Heavy Machinery Engineering
Co. Ltd. Costs 1130000.00 3856300.00
Liaoning Hengtai Heavy Machinery General
Co. Ltd. Contracting Fee 372915.00
Liaoning Hengtai Heavy Machinery Labor
Co. Ltd. Outsourcing Fees 371360.00 530585.00
Notes to the financial statements Page 135Bengang Steel Plates Co. Ltd.Notes to the financial statements
Related parties Content of relatedtransactions Current period Previous period
Liaoning Hengtai Heavy Machinery
Co. Ltd. Scrap steel 307201.60 115824.78
Liaoning Hengtai Heavy Machinery
Co. Ltd. Shipping Fee 258110.25 191560.00
Liaoning Hengtong Metallurgical
Equipment Manufacturing Co. Ltd. Spare Parts 141700956.31 152452904.58
Liaoning Hengtong Metallurgical
Equipment Manufacturing Co. Ltd. Repair costs 10647475.00 10198700.00
Liaoning Lide Internet of Things Co.Ltd. Shipping Fee 188323866.99 24602117.69
Liaoning Lide Internet of Things Co. General
Ltd. Contracting Fee 107822916.72 192707239.82
Liaoning Metallurgical Vocational Training Program
Technical College Fees 2171338.83 566077.66
Liaoning Metallurgical Vocational
Technical College Office Expenses 35417.48
Liaoning Yitong Machinery
Manufacturing Co. Ltd. Spare Parts 23426479.58 12814141.11
Liaoning Yitong Machinery
Manufacturing Co. Ltd. Scrap steel 259947.08 142189.46
Liaoning Yitong Machinery
Manufacturing Co. Ltd. Repair costs 81128.33 46204.61
Lingyuan Iron & Steel Group Co.Ltd. Fuel 9268227.70
Pangang Group Chengdu Vanadium
& Titanium Resources Development AuxiliaryMaterials 9240815.38 2361588.46Co. Ltd.Pangang Group Engineering Engineering
Technology Consulting Co. Ltd. Costs 698000.00 736600.00
Shanxi Materials International Energy
Co. Ltd. Fuel 21171289.92
Shenyang Angang International Trade
Co.Ltd. Raw material 46156805.68
Tianjin Bengang Plate Processing &
Distribution Co. Ltd. Processing Fee 391401.34 1300732.50
Tianjin Bengang Plate Processing &
Distribution Co. Ltd. Storage Fee 14635.26 3549.41
Selling goods and services
Related parties Content of relatedtransactions Current period Previous period
Angang (Hangzhou) Automotive Steel and Steel
Materials Technology Co. Ltd. Products 26110728.93 2467535.99
Angang Steel Processing and Warehousing
Distribution (Dalian) Co. Ltd. Revenue 6572.87 14426.21
Angang Steel Processing and Steel and Steel
Distribution (Dalian) Co. Ltd. Products 22036253.52 48365420.36
Angang Steel Processing and Processing
Distribution (Dalian) Co. Ltd. Income 709.9 1558.10
Notes to the financial statements Page 136Bengang Steel Plates Co. Ltd.Notes to the financial statements
Related parties Content of relatedtransactions Current period Previous period
Angang Steel Processing and Steel and Steel
Distribution (Changchun) Co. Ltd. Products 2889078.81 3171633.00
Angang Steel Processing and Steel and Steel
Distribution (Zhengzhou) Co. Ltd. Products 11380701.31
Ansteel Steel Distribution (Hefei) Steel and Steel
Co. Ltd. Products 1088311.34
Ansteel Steel Distribution (Wuhan) Steel and Steel
Co. Ltd. Products 8928420.00 1058038.90
Angang Steel Company Limited Steel and SteelProducts 6093129.73 923408.47
Ansteel Guangzhou Automotive Steel Steel and Steel
Co. Ltd. Products 371488.99
Angang Chemical Technology Co. Chemicals and
Ltd. By-products 234623418.48 255050438.20
Angang Group Engineering &
Technology Co. Ltd. Energy and Power 81332.01 47707.68
Steel and Steel
Angang Group International Products
Economic & Trading Co. Ltd. Chemicals and 228316260.00By-products
Energy and Power
Angang Group International
Economic & Trade Co. Ltd. — Rental Income 1882438.68
Benxi Branch
Angang Group Energy-Saving
Technology Services Co. Ltd. Energy and Power 3634627.65
Ansteel Group Co. Ltd Energy and Power 8611.80 1613.64
Angang Construction Group Co. Ltd. Energy and Power 8781.12
Angang Mining Machinery Steel and Steel
Manufacturing Co. Ltd. Products 27346925.12 30239734.42
Angang Green Resources Technology Raw and
Co. Ltd. Auxiliary 18949004.26 42248746.78Materials
Angang Energy Technology Co. Ltd. Chemicals andBy-products 20588079.91 25955120.37
Angang ShenYang Steel Service Logistics and
Center Co.Ltd. Transportation 5583.98 474927.84Revenue
Angang Industrial Group Steel and Steel
Metallurgical Machinery Co. Ltd. Products 932182.88
Ansteel Water Technology (Liaoning)
Co. Ltd. Energy and Power 8387582.70
Angang Tendering Co. Ltd. Energy and Power 22215.96
Angang Tendering Co. Ltd. Rental Income 902511.86
Ansteel Cast Steel Co. Ltd. Scrap steel 2319678.10
Bengang Electrical Co. Ltd. Other ServiceIncome 5770.61 107.35
Bengang Gaoyuan Industrial
Development Co. Ltd. Energy and Power 200.01
Bengang Group Dalian Refractory Steel and Steel
Materials Co. Ltd Products 4355726.73 5729788.15
Ben Steel Group Co. Ltd Energy and Power 182800.50 2823645.00
Benxi Northern Iron Industry Co. Scrap Steel
Ltd. Auxiliary 176768061.62 84620440.80Materials Raw
Notes to the financial statements Page 137Bengang Steel Plates Co. Ltd.Notes to the financial statements
Related parties Content of relatedtransactions Current period Previous period
Materials
Raw and
Benxi Beifang Steel Rolling Co.Ltd. Auxiliary 1106623.83 1305509.83
Materials
Benxi Beiying Iron and Steel (Group)
Co. LTD Energy and Power 56342466.22
Benxi Beiying Iron and Steel (Group) Other Service
Co. LTD Income 164810.38
Benxi Beiying Iron and Steel (Group) Raw and
Co. LTD Auxiliary 124771137.44 272771274.28Materials
Benxi Dongfenghu Steel Resource Chemicals and
Utilization Co. Ltd. By-products 3079247.01 4221436.54
Benxi Dongfenghu Steel Resource
Utilization Co. Ltd. Analytical Testing 38632.07 52961.92
Benxi Dongfenghu Steel Resource
Utilization Co. Ltd. Energy and Power 4062613.19 5569564.16
Benxi Dongfenghu Steel Resource Raw and
Utilization Co. Ltd. Auxiliary 2538277.48 3479804.41Materials
Benxi Iron and Steel (Group) Real
Estate Development Co. Ltd. Energy and Power 3357.39 23160.82
Benxi Iron and Steel (Group)
Engineering Construction Supervision Energy and Power 1518.81 1909.73
Co. Ltd.Benxi Iron and Steel (Group) Processing
Machinery Manufacturing Co. LTD Income 20095.65 14894.47
Benxi Iron and Steel (Group)
Machinery Manufacturing Co. LTD Analytical Testing 332499.99 246441.91
Benxi Iron and Steel (Group)
Machinery Manufacturing Co. LTD Energy and Power 9406307.11 6971754.52
Benxi Iron and Steel (Group) Logistics and
Machinery Manufacturing Co. LTD Warehousing 1128.28 836.26Revenue
Benxi Iron and Steel (Group) Raw and
Machinery Manufacturing Co. LTD Auxiliary 15549468.75 11524935.11Materials
Benxi Iron and Steel (Group)
Construction Co. Ltd Analytical Testing 5033.20
Benxi Iron and Steel (Group)
Construction Co. Ltd Energy and Power 2053712.95 2009079.40
Benxi Iron and Steel (Group) Mining Steel and Steel
Construction Engineering Co. Ltd. Products 152341.59 147535.77
Benxi Iron and Steel (Group) Mining
Construction Engineering Co. Ltd. Energy and Power 129012.84 124942.95
Benxi Steel Group Mining Liaoyang
Jiajiaopu Iron Mine Co. Ltd. Analytical Testing 349416.98
Benxi Steel Group Mining Liaoyang
Jiajiaopu Iron Mine Co. Ltd. Energy and Power 20539.26 26844.93
Benxi Steel Group Mining Liaoyang
Ma'erling Pelletizing Co. Ltd. Testing Fee 415446.22
Benxi Steel Group Mining Liaoyang
Ma'erling Pelletizing Co. Ltd. Energy and Power 5766.27 8223.26
Notes to the financial statements Page 138Bengang Steel Plates Co. Ltd.Notes to the financial statements
Related parties Content of relatedtransactions Current period Previous period
Benxi Steel Group Mining Liaoyang
Ma'erling Pelletizing Co. Ltd. Fuel 40118126.87 57212321.32
Benxi Iron and Steel (Group) Mining
Yanjia Valley Limestone Mine Co. Other Service
Ltd. Income
34777.36
Benxi Iron and Steel (Group) Mining Steel and Steel
Co. LTD Products 6121141.19 180958.56
Benxi Iron and Steel (Group) Mining Chemicals and
Co. LTD By-products 7120480.07 210501.90
Benxi Iron and Steel (Group) Mining
Co. LTD Energy and Power 171262470.82 5063011.87
Benxi Iron and Steel (Group) Mining Other Service
Co. LTD Income 6917514.72 204501.66
Benxi Iron and Steel (Group) Mining
Co. LTD Fuel 57489832.86 1699565.03
Benxi Iron and Steel (Group)
Thermal Power Development Co. Testing Fee 150535.85
Ltd.Benxi Iron and Steel (Group)
Thermal Power Development Co. Fuels Energyand Power 55147166.11 46021096.45Ltd.Benxi Iron and Steel (Group) Steel and Steel
Equipment Engineering Co. LTD Products 385719.02 2591635.34
Benxi Iron and Steel (Group)
Equipment Engineering Co. LTD Testing Fee 4685.09
Benxi Iron and Steel (Group)
Equipment Engineering Co. LTD Energy and Power 1936577.72 13011811.73
Benxi Iron and Steel (Group) Scrap and Waste
Industrial Development Co. LTD Materials 3172402.59 3739807.91
Benxi Iron and Steel (Group)
Industrial Development Co. LTD Testing Fee 377.36 444.85
Benxi Iron and Steel (Group)
Industrial Development Co. LTD Energy and Power 9597087.14 11313590.06
Benxi Iron and Steel (Group) Raw and
Industrial Development Co. LTD Auxiliary 99695822.06 117527083.48Materials
Benxi Steel Group Information
Automation Co. Ltd. Energy and Power 382134.53 488917.53
Benxi Iron and Steel (Group) Co. Auxiliary
LTD Materials 879064.63 871082.85
Benxi Iron and Steel (Group) Co.LTD Energy and Power 10382274.20 10288004.69
Benxi Xihu Metallurgical Furnace
Material Co. Ltd. Energy and Power 394801.50 236195.71
Benxi Weld Phosphate Overlay
Manufacturing Co. Ltd. Energy and Power 29969.87 50861.74
Benxi New Industrial Development
Co. Ltd. Energy and Power 340823.18 224031.67
Benxi New Industrial Development Other Service
Co. Ltd. Income 2375.66
Benxi New Industrial Development
Co. Ltd. Rental Income 24500.00
Benxi Yuneng Thermal Power Co.Ltd. Energy and Power 65880688.53
Notes to the financial statements Page 139Bengang Steel Plates Co. Ltd.Notes to the financial statements
Related parties Content of relatedtransactions Current period Previous period
Chengdu Xingyun Smart Technology Information
Co. Ltd. Technology 75421.00
Dalian Bolore Steel Pipe Co. Ltd. Steel and SteelProducts 441221.12 10870375.21
Delin Land Port Supply Chain Steel and Steel
Services Co. Ltd Products 3018807232.23 3147395031.01
Guangzhou Ansteel Steel Processing Steel and Steel
Co. Ltd. Products 82030029.56 15100206.27
Liaoning Hengtai Heavy Machinery
Co. Ltd. Testing Fee 4814.15
Liaoning Hengtai Heavy Machinery
Co. Ltd. Energy and Power 697.03
Liaoning Hengtong Metallurgical Scrap Steel Raw
Equipment Manufacturing Co. Ltd. and Auxiliary 26162534.93 29992686.48Materials
Liaoning Hengtong Metallurgical
Equipment Manufacturing Co. Ltd. Testing Fee 155235.85
Liaoning Slag Micro-powder Co.Ltd. Testing Fee 13635.85
Liaoning Lide Internet of Things Co.Ltd. Energy and Power 64442.33
Liaoning Yitong Machinery
Manufacturing Co. Ltd. Testing Fee 1910.38
Pangang Group Jiangyou Great Wall Steel and Steel
Special Steel Co. Ltd. Products 18189214.87 18133959.69
Panzhong Yihong Metal Products Steel and Steel
(Chongqing) Co. Ltd. Products 321469.80
Shenyang Angang International Trade Steel and Steel
Co. Ltd. Products 3671602.72
Tianjin Angang Steel Processing & Steel and Steel
Distribution Co. Ltd. Products 43283195.50 37200677.54
Tianjin Bengang Plate Processing & Steel and Steel
Distribution Co. Ltd. Products 2528483.27
Tianjin Bengang Plate Processing & Other Service
Distribution Co. Ltd. Income 154450.20
Yantai Angang International Trading Steel and Steel
Co. Ltd. Products 1271662.86
Changchun FAW Angang Steel Steel and Steel
Processing & Distribution Co. Ltd. Products 25857484.17 4693047.99
Changchun FAW Angang Steel Logistics and
Processing & Distribution Co. Ltd. Warehousing 2971.66Revenue
China Ordins Group Co. Ltd. Steel and SteelProducts 1012611108.50 2691935623.60
2. Lease information of related parties
Company as lessor：
Type of leasing Lease income of Lease income
Lessee assets current period of previousperiod
Notes to the financial statements Page 140Bengang Steel Plates Co. Ltd.Notes to the financial statements
Type of leasing Lease income of Lease income
Lessee assets current period of previousperiod
Factory buildings
Benxi Steel & Iron (Group) Steel & Iron
and ancillary 108980.00
Process and Logistics Co. Ltd.equipment
Factory buildings
Benxi Steel (Group) Machinery
and ancillary 670802.00
Manufacturing Co. Ltd.equipment
Factory buildings
Bengang Group International Economic
and ancillary 1957007.77
and Trade Co. Ltd.equipment
Factory buildings
Benxi New Industrial Development Co.and ancillary 24500.00
Ltd.equipment
Factory buildings
Angang Tendering Co. Ltd. — Benxi
and ancillary 902511.86
Branch
equipment
Factory buildings
Angang Group International Economic &
and ancillary 1882438.68
Trade Co. Ltd. — Benxi Branch
equipment
Notes to the financial statements Page 141Bengang Steel Plates Co. Ltd.Notes to the financial statements
Company as the lessee：
Current period Previous period amount
Rental Rental
costs for costs for Variable
short-ter Variable short-ter lease
m leases lease
and payments Interest Increase
m leases payments
and not Increase
Lessor Name Leased Asset in Interest inType leases of not included expense leases of includedlow-valu in the Rent paid on lease right-of- low-valu in the Rent paid expense on right-of-
e assets measureme liabilities useassets e assets measurem
lease liabilities use
with nt of lease with ent of assets
simplifie liabilities simplifie lease
d d liabilities
treatment treatment
Land use right
Benxi Steel 7669068.17
& Iron square meter 55277544. 36985912.
121655277544.1237677819.06
(Group) Co. Land use right
Ltd. 42920.00
square meter
Benxi Steel 2300 Hot
& Iron rolling product 16098161. 6603587.3
04116098161.046968900.84
(Group) Co. line related
Ltd. real estate
14351637.5085711.9
Benxi 1780 Hot 72 0 14351637.72 5367055.84
Notes to the financial statements Page 142Bengang Steel Plates Co. Ltd.Notes to the financial statements
Current period Previous period amount
Rental Rental
costs for costs for Variable
short-ter Variable short-ter lease
m leases lease m leases payments
and payments Interest Increase and not Increase
Lessor Name Leased AssetType leases of not included
in
Rent paid expense leases of included
Interest in
low-valu in the on lease right-of- low-valu in the Rent paid expense on right-of-
e assets measureme liabilities useassets e assets measurem
lease liabilities use
with nt of lease with ent of assets
simplifie liabilities simplifie lease
d d liabilities
treatment treatment
Beiying Steel rolling product
& Iron line related
(Group) Co. real estate
Ltd.Bengang Land use right
9945423.11430095.1
Group Co. 728282.30 2 3 9945423.12 1757731.16
Ltd. square meter
Angang
Group
Energy-Savin Machinery and 10499986. 3757252.2 7418960.00 6474538.06 25512801 7 489.65
g Technology equipment
Services Co.Ltd.Notes to the financial statements Page 143Bengang Steel Plates Co. Ltd.Notes to the financial statements
Current period Previous period amount
Rental Rental
costs for costs for Variable
short-ter Variable short-ter lease
m leases lease m leases payments
Leased Asset and payments Interest
Increase
in and not
Increase
Lessor Name Type leases of not included Rent paid expense right-of- leases of included
Interest in
low-valu in the on lease low-valu in the Rent paid expense on right-of-
e assets measureme liabilities use e assets measurem lease liabilities use
with nt of lease assets with ent of assets
simplifie liabilities simplifie lease
d d liabilities
treatment treatment
Benxi New
Business 120000.0
Land Lease 0
Development
Co. Ltd.Benxi Iron &
Steel (Group) Transport 1528857
3.67
Construction Equipment
Co. Ltd.Benxi Iron &
Steel (Group)
Transport 418680.0 299057.1
Machinery 0 4
Equipment
Manufacturin
g Co. Ltd.Notes to the financial statements Page 144Bengang Steel Plates Co. Ltd.Notes to the financial statements
Current period Previous period amount
Rental Rental
costs for costs for Variable
short-ter Variable short-ter lease
m leases lease m leases payments
Leased Asset and payments Interest
Increase and not Increase
Lessor Name leases of not included in Interest inType low-valu in the Rent paid
expense right-of- leases of includedon lease Rent paid expense on right-of-
e assets measureme liabilities use
low-valu in the
e assets measurem lease liabilities use
with nt of lease assets with ent of assets
simplifie liabilities simplifie lease
d d liabilities
treatment treatment
Benxi
Yuneng
Machinery and 61062500. 4907391.2 934741
Thermal 00 5 189.81
Equipment
Power Co.Ltd.Anzi
(Tianjin)
Machinery and 6790154.Financial 51
Equipment
Leasing Co.Ltd.Notes to the financial statements Page 145Bengang Steel Plates Co. Ltd.Notes to the financial statements
3. Remuneration of key management personnel
Units: in 10 thousand
Items Current period Previous period
Remuneration of key management
240.44402.56
personnel
Other Notes: For 2024 Key Management Personnel comprised Senior
Management Directors and Supervisors; for 2025 Key Management Personnel
comprise Senior Management and Directors. In accordance with the 2025
disclosure requirements the remuneration for Key Management Personnel in the
preceding year amounted to RMB 3.11 million.
（6） Receivables and payables of the related parties
1. Receivables of the company
2025/12/312024/12/31
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Angang Steel
Accounts Processing and
receivable Distribution 4103076.87 41030.77 17280685.82 172806.86
(Dalian) Co. Ltd.
Accounts Ansteel Steel
receivable Distribution 343341.92 343341.92(Wuhan) Co. Ltd.Accounts Angang Steel
receivable Company Limited 519491.94 5194.92
Angang Group
Accounts Engineering &
receivable Technology Co. 68421.86 684.22 23232.88 232.33
Ltd.Angang Group
Accounts International
receivable Economic & Trade 663734937.01 6637349.37Co. Ltd. — Benxi
Branch
Angang Green
Accounts Resources
receivable Technology Co. 320787.24 3207.87
Ltd.Accounts Angang Energy
receivable Technology Co. 3911318.52 39113.19Ltd.Accounts Ansteel Water
receivable Technology 9476960.09 94769.60(Liaoning) Co. Ltd.Bengang Group
Accounts International
receivable Economic and 253981286.94 2539812.87
Trade Co. Ltd.Accounts Bengang
receivable Automotive 5425.66 54.26Transport Co. Ltd.Notes to the financial statements Page 146Bengang Steel Plates Co. Ltd.Notes to the financial statements
2025/12/312024/12/31
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Accounts Benxi Northern Iron
receivable Industry Co. Ltd. 20750535.50 207505.36 8268156.18 82681.56
Accounts Benxi Beifang Steel
receivable Rolling Co.Ltd. 1475226.11 14752.26
Accounts Benxi Beiying Iron
receivable and Steel (Group) 19945828.68 199458.29 143872.00 1438.72Co. LTD
Accounts Benxi Dongfenghu
receivable Steel Resource 333779.18 3337.79 454258.02 4542.58Utilization Co. Ltd.Benxi Iron and
Accounts Steel (Group)
receivable Machinery 3398120.05 33981.20Manufacturing Co.LTD
Benxi Iron and
Accounts Steel (Group)
receivable Construction Co. 594714.68 59576.37 1389266.64 39345.19
Ltd
Benxi Iron and
Steel (Group)
Accounts Mining
receivable Construction 596201.51 155166.81 607729.23 63193.36
Engineering Co.Ltd.Benxi Iron & Steel
Accounts (Group) Mining &
receivable Mineral Resources 88983.85 17796.77 88983.85 8898.39Development Co.Ltd.Benxi Steel Group
Accounts Mining Liaoyang
receivable Jiajiaopu Iron Mine 299118.20 2991.18 16557.90 165.58
Co. Ltd.Benxi Steel Group
Accounts Mining Liaoyang
receivable Ma'erling 3739637.59 37396.38 921521.39 67911.03
Pelletizing Co. Ltd.Benxi Iron and
Accounts Steel (Group)
receivable Mining Yanjia 36864.00 368.64 13714.00 137.14Valley Limestone
Mine Co. Ltd.Accounts Benxi Iron and
receivable Steel (Group) 14459984.49 144599.84 2184958.74 21849.59Mining Co. LTD
Benxi Iron and
Accounts Steel (Group)
receivable Thermal Power 7474879.91 74748.80 6744686.82 246075.39Development Co.Ltd.Benxi Iron and
Accounts Steel (Group)
receivable Equipment 439269.47 37697.79 1903696.41 39634.20Engineering Co.LTD
Accounts Benxi Iron and
receivable Steel (Group) 5815109.99 58151.10 6964699.57 69647.00Industrial
Notes to the financial statements Page 147Bengang Steel Plates Co. Ltd.Notes to the financial statements
2025/12/312024/12/31
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Development Co.LTD
Benxi Steel Group
Accounts Information
receivable Automation Co. 561.58 5.62
Ltd.Accounts Benxi Iron and
receivable Steel (Group) Co. 197118.63 1971.19 1700740.58 17007.41LTD
Benxi Xihu
Accounts Metallurgical
receivable Furnace Material 34893.27 348.93 49833.00 498.33
Co. Ltd.Benxi Weld
Accounts Phosphate Overlay
receivable Manufacturing Co. 190148.59 8558.50
Ltd.Benxi New
Accounts Industrial
receivable Development Co. 63782.37 637.82
Ltd.Accounts Guangzhou Ansteel
receivable Steel Processing 3200080.63 32000.81Co. Ltd.Liaoning Hengtong
Accounts Metallurgical
receivable Equipment 54010.30 540.1Manufacturing Co.Ltd.Accounts Liaoning Slag
receivable Micro-powder Co. 12848.00 128.48Ltd.Accounts Liaoning Lide
receivable Internet of Things 12039.75 120.4Co. Ltd.Pangang Group
Accounts Jiangyou Great
receivable Wall Special Steel 5423048.21 54230.48 5864196.39 58641.96
Co. Ltd.MCC South
Accounts Engineering &
receivable Technology Co. 9813.70 9813.70
Ltd.Angang Steel
Prepayments Processing andDistribution 317756.00
(Dalian) Co. Ltd.
Angang Steel
Processing and
Prepayments Distribution 14245.92 663.59
(Changchun) Co.
Ltd.Prepayments Angang SteelCompany Limited 561163.77 484808.79
Angang Group
Prepayments InternationalEconomic & 35372892.55 0.01
Trading Co. Ltd.Notes to the financial statements Page 148Bengang Steel Plates Co. Ltd.Notes to the financial statements
2025/12/312024/12/31
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Angang Group
International
Prepayments Economic & Trade 44117532.53
Co. Ltd. — Benxi
Branch
Benxi Beiying Iron
Prepayments and Steel (Group) 29562250.68 4874319.39
Co. LTD
Benxi Iron and
Steel (Group)
Prepayments Machinery 318579.31
Manufacturing Co.LTD
Benxi Iron and
Steel (Group)
Prepayments Equipment 3245781.89 3162173.15
Engineering Co.LTD
Benxi Steel Group
Prepayments InformationAutomation Co. 581838.17 575313.17
Ltd.Benxi New
Prepayments IndustrialDevelopment Co. 6867713.50 7196737.50
Ltd.Other Angang Steel
receivables Company Limited 95781.27 55603.99 95781.27 50581.83
Other Ansteel Group Co.receivables Ltd 6706.00 670.6 13906.00 139.06
Other Bengang Stainless
receivables Steel Cold Rolling 84855.74 8485.57 1030000.00 10300.00Dandong Co. Ltd.Other Ben Steel Group
receivables Co. Ltd 0.06
Benxi Iron and
Other Steel (Group)
receivables Construction Co. 250679.61 250679.61 250679.61 250679.61
Ltd
Other Benxi Iron and
receivables Steel (Group) Co. 2674500.00 413000.00 2674500.00 157740.00LTD
Benxi Gaoxin
Other Drilling Tools
receivables Manufacturing Co. 10800.00 10800.00
Ltd.Other Liaoning Lide
receivables Internet of Things 1881016.00 18810.16Co. Ltd.Other Angang Group
non-current Engineering &Technology Co. 1968632.21assets Ltd.Angang Group
Other International
non-current Economic & Trade 8213719.14
assets Co. Ltd. — Benxi
Branch
Notes to the financial statements Page 149Bengang Steel Plates Co. Ltd.Notes to the financial statements
2025/12/312024/12/31
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Other Bengang Gaoyuan
non-current Industrial 542400.00
assets Development Co.Ltd.Other Benxi Iron and
non-current Steel (Group)Construction Co. 19602615.33 19936615.33assets Ltd
Benxi Iron and
Other Steel (Group)
non-current MiningConstruction 2210879.80 3102019.08assets Engineering Co.Ltd.Benxi Iron and
Other Steel (Group)
non-current Equipment 11975916.33 12686042.92
assets Engineering Co.LTD
Benxi Iron and
Other Steel (Group)
non-current Industrial 562392.14 562392.14
assets Development Co.LTD
Other Benxi Steel Group
non-current InformationAutomation Co. 647592.46 7692252.35assets Ltd.Other Liaoning Hengtai
non-current Heavy Machinery 37496.00 5895416.00
assets Co. Ltd.
2. Payables of the company
Items Related party 2025/12/31 2024/12/31
Account payables Angang Electrical Co. Ltd. 542993.20 63861.90
Account payables Angang Scrap Resources(Anshan) Co. Ltd. 2018855.66 90856997.04
Angang Steel Processing &
Account payables Distribution (Changchun) Co. 103452.29 108462.46
Ltd.Account payables Angang Steel Rope Co. Ltd. 535865.47
Account payables Angang Steel Company Limited 417943.15 417943.09
Ansteel Group Railway
Account payables Equipment Checking & Repairing 248392.08
Company
Account payables Angang Group EngineeringTechnology Co. Ltd. 221880.02 85440.00
Account payables Angang Group InternationalEconomic & Trade Co. Ltd. 42087343.55 193806.42
Account payables Angang Group MiningGongchangling Co. Ltd. 116768098.39 774734.40
Notes to the financial statements Page 150Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items Related party 2025/12/31 2024/12/31
Account payables Angang Mining Construction Co.Ltd. 3244303.87
Account payables Angang Mining AutomotiveTransportation Co. Ltd. 324680.50
Account payables Angang Green ResourcesTechnology Co. Ltd. 1525088.24
Account payables Angang Energy Technology Co.Ltd. 296477.37
Account payables Ansteel AutomobileTransportation Co. Ltd. 4409095.38
Angang Industrial Group
Account payables (Anshan) Equipment Operation &
Maintenance Co. Ltd.Angang Industrial Group
Account payables Metallurgical Machinery Co. 3701643.08 3048409.40
Ltd.Account payables Ansteel Shuangsheng (Anshan)Fan Co. Ltd 24295.00
Account payables Ansteel Water Technology(Liaoning) Co. Ltd. 33650652.24
Account payables Angang Heavy Machinery Co.Ltd. 1760278.00 2480080.39
Anshan Iron & Steel
Account payables Metallurgical Furnace Material 524299.30 2641730.70
Technology Co. Ltd.Account payables Anshan Jianbo EngineeringTesting Co. Ltd. 187620.00
Account payables Bengang Stainless Steel ColdRolling Dandong Co. Ltd. 109338.10
Account payables Bengang Electrical Co. Ltd. 6089528.32 2692262.89
Account payables Bengang Gaoyuan IndustrialDevelopment Co. Ltd. 878009.43 3969044.08
Account payables Bengang Group DalianRefractory Materials Co. Ltd 1007742.98 1487446.42
Account payables Bengang Group InternationalEconomic and Trade Co. Ltd. 55290633.89 50692605.67
Account payables Bengang Group Co. Ltd. 4688239.05 4688239.05
Account payables Bengang Automotive TransportCo. Ltd. 7781443.76
Account payables Benxi Aike Hydraulic SealingCo. Ltd. 1854069.53 2778115.83
Account payables Benxi Northern Iron Industry Co.Ltd. 154811.36 73671.74
Account payables Benxi Beiying Iron and Steel(Group) Co. Ltd. 1722301.48 79183767.61
Account payables Benxi Dongfenghu SteelResource Utilization Co. Ltd. 1738248.20 2794117.30
Benxi Iron and Steel (Group)
Account payables Real Estate Development Co. 89735.06 89735.06
Ltd.Benxi Iron and Steel (Group)
Account payables Engineering Construction 97970.00
Supervision Co. Ltd.Notes to the financial statements Page 151Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items Related party 2025/12/31 2024/12/31
Account payables Benxi Steel and Iron(Group)Tengda Co. Ltd. 61267825.22 46335396.72
Benxi Iron and Steel (Group)
Account payables Machinery Manufacturing Co. 41328266.38 10659752.69
Ltd.Benxi Iron & Steel (Group)
Account payables Construction Advanced 264705.62 264705.62
Decoration Co. Ltd.Account payables Benxi Iron and Steel (Group)Construction Co. Ltd. 30611624.28 29543424.37
Benxi Iron and Steel (Group)
Account payables Mining Construction Engineering 11074458.13 12083876.39
Co. Ltd.Benxi Steel Group Mining
Account payables Liaoyang Jiajiaopu Iron Mine 29642.17
Co. Ltd.Benxi Steel Group Mining
Account payables Liaoyang Ma'erling Pelletizing 4166130.41 10282360.99
Co. Ltd.Account payables Benxi Iron and Steel (Group)Mining Co. Ltd. 116498925.34 59008517.39
Benxi Iron and Steel (Group)
Account payables Thermal Power Development Co. 200647.49 12362.40
Ltd.Account payables Benxi Steel Group EquipmentEngineering Co. Ltd. 176946939.95 92630122.46
Account payables Benxi Steel Group IndustrialDevelopment Co. Ltd. 45976044.04 53022441.36
Account payables Benxi Steel Group InformationAutomation Co. Ltd. 27951632.92 23459353.69
Account payables Benxi Iron and Steel (Group) Co.LTD 19131787.26 28808379.76
Account payables Benxi Gaoxin Drilling ToolsManufacturing Co. Ltd. 0.03
Account payables Benxi Xihu Metallurgical FurnaceMaterial Co. Ltd. 26922238.21 17171380.52
Account payables Benxi Weld Phosphate OverlayManufacturing Co. Ltd. 37542.84 234112.13
Account payables Benxi New IndustrialDevelopment Co. Ltd. 2564586.37 38700.00
Account payables Benxi Yuneng Thermal PowerCo. Ltd. 57929876.17
Account payables Dalian Bolore Steel Pipe Co. Ltd. 1007742.98
Account payables Delin Industrial Products Co. Ltd 32478323.08 11409283.88
Account payables Delin Land Port Supply ChainServices Co. Ltd 542696.24 7713.30
Account payables Heilongjiang Longmei MiningGroup Co. Ltd. 6165.02
Account payables Hongda Engineering Technology(Liaoning) Co. Ltd.Account payables Liaoning Hengtai HeavyMachinery Co. Ltd. 13525100.18 13479975.49
Notes to the financial statements Page 152Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items Related party 2025/12/31 2024/12/31
Liaoning Hengtong Metallurgical
Account payables Equipment Manufacturing Co. 14245092.81 7166704.73
Ltd.Account payables Liaoning Lide Internet of ThingsCo. Ltd. 14876486.42 7230457.06
Account payables Liaoning MetallurgicalVocational Technical College 341428.00 517768.00
Account payables Liaoning Yitong MachineryManufacturing Co. Ltd. 7836142.40 4599719.45
Account payables Lingyuan Iron & Steel Group Co.Ltd. 158290.35
Account payables Shanxi Materials InternationalEnergy Co. Ltd.Account payables Shenyang Angang InternationalTrade Co. Ltd. 52157190.42
Account payables Shenyang Xiangyu NewMaterials Technology Co. Ltd. 5321326.65
Account payables Tianjin Bengang Plate Processing& Distribution Co. Ltd. 487.99
Other payables Angang (Liaoning) MaterialsTechnology Co. Ltd. 231080.00 300000.00
Other payables Angang Scrap Resources(Anshan) Co. Ltd. 500000.00 500000.00
Angang Engineering Production
Other payables Operations & Maintenance 10000.00
(Anshan) Co. Ltd.
Other payables Angang Group EngineeringTechnology Co. Ltd. 328323471.32 114249580.71
Other payables Angang Group InternationalEconomic & Trade Co. Ltd. 19873739.81
Other payables Angang Group Automation Co.Ltd. 14175000.00 7332129.00
Other payables Angang Construction Group Co.Ltd. 63085702.32 3319522.94
Other payables Angang Metal Structure Co. Ltd. 10000.00
Other payables Angang Heavy Machinery Design& Research Institute Co. Ltd. 826121.54 826121.54
Other payables Angang Heavy Machinery Co.Ltd. 1040012.56 1040012.56
Other payables Anshan Angang InternationalTravel Agency Co. Ltd. 1175.00
Anshan Iron & Steel
Other payables Metallurgical Furnace Material 50000.00 50000.00
Technology Co. Ltd.Other payables Anshan Jianbo EngineeringTesting Co. Ltd. 21200.00
Other payables Beijing ZhongliangangE-commerce Co. Ltd. 10000.00
Other payables Bengang Electrical Co. Ltd. 4436730.79 776394.34
Other payables Bengang Gaoyuan IndustrialDevelopment Co. Ltd. 6264369.57 5005617.56
Notes to the financial statements Page 153Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items Related party 2025/12/31 2024/12/31
Other payables Bengang Group DalianRefractory Materials Co. Ltd 20000.00
Other payables Bengang Group InternationalEconomic and Trade Co. Ltd. 74855543.30 66120363.96
Other payables Bengang Group Co. Ltd. 205343448.25 264897561.47
Other payables Bengang Automotive TransportCo. Ltd. 1141388.25
Other payables Benxi Aike Hydraulic SealingCo. Ltd. 58590.00 58590.00
Other payables Benxi Beiying Iron and Steel(Group) Co. Ltd. 7282312.51 7766352.17
Other payables Benxi Dongfenghu SteelResource Utilization Co. Ltd. 210000.00 210000.00
Benxi Iron and Steel (Group)
Other payables Engineering Construction 4357143.03 1488917.43
Supervision Co. Ltd.Benxi Iron and Steel (Group)
Other payables Machinery Manufacturing Co. 47825817.72 3792085.01
Ltd.Other payables Benxi Iron & Steel (Group)Inspection & Testing Co. Ltd. 735280.00
Benxi Iron & Steel (Group)
Other payables Construction Advanced 103738.55 123738.55
Decoration Co. Ltd.Other payables Benxi Iron and Steel (Group)Construction Co. Ltd. 280668215.31 217077997.48
Benxi Iron and Steel (Group)
Other payables Mining Construction Engineering 6975860.52 7550015.30
Co. Ltd.Benxi Iron & Steel (Group) Road
Other payables & Bridge Construction 318.66
Engineering Co. Ltd.Benxi Iron and Steel (Group)
Other payables Thermal Power Development Co. 5939555.04 697337.92
Ltd.Other payables Benxi Steel Group EquipmentEngineering Co. Ltd. 578263720.60 724514695.24
Other payables Benxi Steel Group IndustrialDevelopment Co. Ltd. 3444007.73 1412218.05
Other payables Benxi Steel Group InformationAutomation Co. Ltd. 238531102.78 108472109.63
Other payables Benxi Iron and Steel (Group) Co.LTD 40544440.05 52720523.82
Other payables Benxi Xihu Metallurgical FurnaceMaterial Co. Ltd. 100000.00 100000.00
Other payables Benxi New IndustrialDevelopment Co. Ltd. 6849133.66 13997378.10
Other payables Dalian Bolore Steel Pipe Co. Ltd. 20000.00
Other payables Delin Industrial Products Co. Ltd 10359.99
Other payables Delin Land Port Supply ChainServices Co. Ltd 1250000.00
Notes to the financial statements Page 154Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items Related party 2025/12/31 2024/12/31
Other payables Hongda Engineering Technology(Liaoning) Co. Ltd. 1479.36
Other payables Liaoning Hengtai HeavyMachinery Co. Ltd. 8943894.94 5024204.94
Other payables ? Liaoning Hengyi Steel TradeCo. Ltd. 11758998.02 11758998.02
Other payables Liaoning MetallurgicalTechnician College 20561.00 0.01
Other payables Liaoning MetallurgicalVocational Technical College 390110.00 353630.00
Other payables Liaoning Yitong MachineryManufacturing Co. Ltd. 372123.61 330463.37
Other payables Pangang Group EngineeringTechnology Consulting Co. Ltd. 517972.47
Changchun FAW Angang Steel
Other payables Processing & Distribution Co. 7500.00
Ltd.Other payables MCC Northern Engineering &Technology Co. Ltd. 200000.00
Other payables MCC South Engineering &Technology Co. Ltd. 8826046.90
Other payables MCC-CEI EngineeringTechnology Co. Ltd. 393250.01
Contract liabilities Angang (Hangzhou) AutomotiveMaterials Technology Co. Ltd. 2025506.35 644589.93
Contract liabilities Angang Steel Processing &Distribution (Dalian) Co. Ltd. 1018.12
Angang Steel Processing &
Contract liabilities Distribution (Changchun) Co. 427186.59 2826567.07
Ltd.Angang Steel Processing &
Contract liabilities Distribution (Zhengzhou) Co. 243332.37
Ltd.Contract liabilities Angang Steel Distribution (Hefei)Co. Ltd. 1889663.02 3099204.80
Contract liabilities Angang Steel Distribution(Wuhan) Co. Ltd. 717523.80 731023.72
Contract liabilities Angang Steel Company Limited 248811.04 675535.16
Contract liabilities Angang Chemical TechnologyCo. Ltd. 12924085.33 10758548.27
Contract liabilities Angang Group InternationalEconomic & Trade Co. Ltd. 1671004.51 649732.04
Contract liabilities Angang Mining MachineryManufacturing Co. Ltd. 136.07 354001.32
Contract liabilities Angang Green ResourcesTechnology Co. Ltd. 477418.26
Contract liabilities Angang Energy Technology Co.Ltd. 0.02
Contract liabilities Angang ShenYang Steel ServiceCenter Co. Ltd. 87869.94
Angang Industrial Group
Contract liabilities Metallurgical Machinery Co. 12992.52
Ltd.Notes to the financial statements Page 155Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items Related party 2025/12/31 2024/12/31
Contract liabilities Bengang Group DalianRefractory Materials Co. Ltd 798522.40 4203125.16
Contract liabilities Bengang Group InternationalEconomic and Trade Co. Ltd. 9843810.08
Contract liabilities Benxi Beiying Iron and Steel(Group) Co. Ltd. 8495254.41 6329389.09
Contract liabilities Benxi Dongfenghu SteelResource Utilization Co. Ltd. 4038112.95 4881014.65
Contract liabilities Benxi Steel and Iron(Group)Tengda Co. Ltd. 190255.10
Benxi Iron and Steel (Group)
Contract liabilities Machinery Manufacturing Co. 1035651.33 5552.80
Ltd.Contract liabilities Benxi Iron and Steel (Group)Construction Co. Ltd. 39135.82 39135.82
Contract liabilities Benxi Iron and Steel (Group)Mining Co. Ltd. 4135552.29 510246.41
Benxi Iron and Steel (Group)
Contract liabilities Thermal Power Development Co. 49.23 8620006.55
Ltd.Contract liabilities Benxi Steel Group IndustrialDevelopment Co. Ltd. 8514062.43 10393122.80
Contract liabilities Benxi Iron & Steel (Group)Metallurgical Slag Co. Ltd. 0.01
Contract liabilities Benxi Xihu Metallurgical FurnaceMaterial Co. Ltd. 20000.00 20000.00
Contract liabilities Dalian Bolore Steel Pipe Co. Ltd. 3191247.16
Contract liabilities Delin Land Port Supply ChainServices Co. Ltd 520753057.71 305864435.81
Contract liabilities Guangzhou Angang SteelProcessing Co. Ltd. 500000.00
Liaoning Hengtong Metallurgical
Contract liabilities Equipment Manufacturing Co. 5064025.37 3278592.93
Ltd.Contract liabilities Liaoning MetallurgicalVocational Technical College 0.01
Contract liabilities Panzhong Yihong Metal Products(Chongqing) Co. Ltd. 22203.73
Contract liabilities Shenyang Angang InternationalTrade Co. Ltd. 77077.62
Contract liabilities Tianjin Angang Steel Processing& Distribution Co. Ltd. 1619646.79 4824582.32
Contract liabilities Tianjin Bengang Plate Processing& Distribution Co. Ltd. 6576579.15
Changchun FAW Angang Steel
Contract liabilities Processing & Distribution Co. 5486624.22 8200175.36
Ltd.Contract liabilities China Ordins Group Co. Ltd. 151750367.82 236678427.35
Notes to the financial statements Page 156Bengang Steel Plates Co. Ltd.Notes to the financial statements
（7） Centralized Fund Management
1. The key elements of the centralized capital management arrangements in which the
Company participates and operates are as follows:
In December 2021 after negotiation with Anshan Iron & Steel Group Finance CompanyLimited (hereinafter referred to as Anshan Iron & Steel Finance Company) the “FinancialServices Agreement (Years 2022-2024)” was entered into in order to agree on the terms of the
relevant financial business and the upper limit of the amount of the relevant transactions
between the Company and its subsidiaries and Anshan Iron & Steel Finance Company for the
years 2022 2023 and 2024. The agreement stipulates that in the next twelve months the
maximum daily deposit balance of the Company and its holding subsidiaries with Anshan
Iron & Steel Finance Company will be RMB4.5 billion the maximum credit limit of loans
bills and other forms of credit will be RMB5.0 billion and the maximum entrusted loan to be
provided by Anshan Iron & Steel Finance Company to the Company will be RMB2.0 billion.In December 2024 after negotiation with Anshan Iron & Steel Group Finance CompanyLimited (hereinafter referred to as Anshan Iron & Steel Finance Company) the “FinancialServices Agreement (Years 2025-2027)” was entered into in order to agree on the terms of the
relevant financial business and the upper limit of the amount of the relevant transactions
between the Company and its subsidiaries and Anshan Iron & Steel Finance Company for the
years 2025 2026 and 2027. The agreement stipulates that the maximum daily balance of
funds deposited by Bengang Plates in Angang Financial Company for settlement shall not
exceed RMB 4.5 billion each year and the interest generated by the deposits shall not exceed
RMB 100 million per year; the amount of loans bills and other forms of credit provided by
Angang Financial Company to Bengang Plates shall not exceed RMB 5 billion each year and
the loan interest shall not exceed RMB 250 million per year; the amount of entrusted loans
provided by Angang Financial Company to Bengang Plate Group shall not exceed RMB 2
billion each year and the entrusted loan interest shall not exceed RMB 100 million per year.
2. Funds pooled by the Company to the Group
Funds deposited directly into finance companies by the Company without being pooled into
the accounts of the Group's parent company
Items 2025/12/31 2024/12/31
Notes to the financial statements Page 157Bengang Steel Plates Co. Ltd.Notes to the financial statements
Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Cash at bank and on
194746442.771227198770.48
hand
Total 194746442.77 1227198770.48
Including: funds
restricted due to
centralized management
of funds
13. Commitments and Contingencies
（1） Significant Commitments
1. Significant Commitments Existing at the Balance Sheet Date
(1) According to the Land Use Rights Lease Agreement signed between the Company and
Benxi Steel (Group) Co. Ltd. on April 7 1997 December 30 2005 and subsequent
supplementary agreements the Company leases land from Bengang Group at a rate of
0.594 yuan per square meter per month with a lease term of 45 years. The total leased
land area is 7669068.17 square meters with an annual rent of 54.67 million yuan.
(2) On August 14 2019 the Company signed the Building Lease Agreements with Benxi
Steel (Group) Co. Ltd. and Benxi Beiying Steel (Group) Co. Ltd. leasing the buildings
and auxiliary facilities occupied by the 2300 hot rolling mill production line and the 1780
hot rolling mill production line respectively. The lease term extends until December 31
2038. The lease fee is determined based on the depreciation of the original building value
and national surtaxes plus a reasonable profit margin through negotiation. The estimated
maximum annual rent shall not exceed 20 million yuan for the 2300 hot rolling mill and 18
million yuan for the 1780 hot rolling mill. The rent is settled and paid on a monthly basis.This related-party transaction has been reviewed and approved by the Company’ s 8th
Board of Directors at its 4th meeting.
(3) On July 15 2019 the Company signed Land Lease Agreements with Benxi Steel
(Group) Co. Ltd. and Bengang Group leasing a total of eight plots of land from both
companies. The leased land areas are 42920.00 square meters and 728282.30 square
meters respectively. The lease term is 20 years with a rental price of 1.138 yuan per
square meter per month. After the agreement takes effect every five years an evaluation
will be conducted based on national laws and policies and the pricing principles stipulated
in Article 2 of the agreement to determine whether the rent needs to be adjusted. This
Notes to the financial statements Page 158Bengang Steel Plates Co. Ltd.Notes to the financial statements
related-party transaction has been reviewed and approved by the Company’s 8th Board of
Directors at its 3rd meeting.
(4) As of December 31 2025 the amount of irrevocable letters of credit yet to be fulfilled
is RMB 1.14 billion yuan.
（2） Contingencies
As of December 31 2025 the Company has no significant contingent matters that require
disclosure.
14. Subsequent events
On March 20 2026 Bengang Steel Plates Co. Ltd. issued the "Progress Announcement on
Major Asset Exchange and Related-Party Transaction." The Company plans to conduct an
asset exchange with its controlling shareholder Benxi Steel (Group) Co. Ltd. The proposed
acquired asset is 100% equity interest in Benxi Steel & Iron (Group) Mining Co. Ltd. The
proposed disposed assets include all assets and liabilities of the listed company except for the
retained assets and liabilities. Any difference in value between the acquired and disposed
assets will be settled in cash by one party to the other. At present the specific scope of the
transaction assets transaction price and other key elements have not been finalized. No
agreement has been signed between the parties and the transaction plan requires further
evaluation discussion and negotiation. Additionally the transaction must undergo necessary
decision-making and approval procedures in accordance with relevant laws regulations and
the Company's Articles of Association. Therefore there remains significant uncertainty
regarding this transaction.
15. Other significant events
（1） Correction of previous accounting errors
1. Retrospective Restatement Method
No prior period accounting errors were corrected using the retrospective restatement
method during this reporting period.
2. Prospective Application Method
No prior period accounting errors were corrected using the prospective application method
during this reporting period.Notes to the financial statements Page 159Bengang Steel Plates Co. Ltd.Notes to the financial statements
（2） Significant Debt Restructuring
Original Fair Value
Recognized Increase in Share Increase in Percentage
Debt Carrying Contingent Determination
Gain/Loss on Capital Due to Investment Due of Debtor's
Items Restructuring Amount of Payable/Rece Method and
Debt Debt-to-Equity to Debt-to-Equity Total Equity
Method Restructured ivable Basis in Debt
Restructuring Conversion Conversion (%)
Debt Restructuring
Settlement of
debt with cash
Accounts
lower than the 561404751.93 17512835.36
Payable
carrying amount
of the debt
Total 561404751.93 17512835.36
Notes to the financial statements Page 160Bengang Steel Plates Co. Ltd.Notes to the financial statements
（3） Segment information
Due to the fact that the Company's main product is steel with other products accounting
for a smaller proportion of sales and the primary production base being located in the
Liaoning region it is not applicable to disclose segment reporting.
16. Notes to the financial statements of parent company
1. Accounts receivable
(1) Accounts receivable disclosed by aging
Items 2025/12/31 2024/12/31
Within 1 year (inclusive) 936430278.56 775949268.73
1-2 years (inclusive) 121705680.10 5786445.58
2-3 years (inclusive) 2911370.99 126254788.19
3-4 years (inclusive) 125547627.17 557413.41
4-5 years (inclusive) 556497.21 748799.87
Over 5 years 97287740.83 97491074.53
subtotal 1284439194.86 1006787790.31
less：bad debt 130549967.32 107374488.69
Total: 1153889227.54 899413301.62
Notes to the financial statements Page 161Bengang Steel Plates Co. Ltd.Notes to the financial statements
(2) Accounts receivable disclosed by method of bad debt provision
2025/12/312024/12/31
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Items Provision Provision
Percentage Book value Percentage Book value
Amount Amount Percentage Amount Amount Percentage
(%)(%)
(%)(%)
Provision
assessed 48196244.68 3.75 48196244.68 100.00 48196244.68 4.79 48196244.68 100.00
individually
Provision
assessed by
grouping 1236242950.18 96.25 82353722.64 6.66 1153889227.54 958591545.63 95.21 59178244.01 6.17 899413301.62
credit risk
characteristics
Including: By
Aging 1004714745.30 78.22 82353722.64 8.20 922361022.66 313614474.73 31.15 59178244.01 18.87 254436230.72
portfolio
By Risk-free
231528204.8818.03231528204.88644977070.9064.06644977070.90
portfolio
Total 1284439194.86 100.00 130549967.32 1153889227.54 1006787790.31 100.00 107374488.69 899413301.62
Notes to the financial statements Page 162Bengang Steel Plates Co. Ltd.Notes to the financial statements
Significant Provision for bad debts assessed individually：
2025/12/312024/12/31
Bad
Item Accounts Provision for debts Basis for Accounts Provision for
receivable bad debts ratio provision receivable bad debts
（%）
Benxi Nanfen
Xinhe Ceased
Metallurgical 48196244.68 48196244.68 100.00 48196244.68 48196244.68
Co. Ltd. production
Total 48196244.68 48196244.68 48196244.68 48196244.68
Accounts receivable tested for impairment by portfolio:
Risk-free portfolio
2025/12/31
Item
Carrying amount Provision for bad debts Bad debts ratio (%)
Risk-free portfolio 231528204.88
Total 231528204.88
Aging portfolio
2025/12/31
Items
Carrying amount Provision for bad debts Bad debts ratio (%)
Within 1 year
890620002.618906200.031.00
(Inclusive)
1-2 years (Inclusive) 42575692.54 4257569.25 10.00
2-3 years (Inclusive) 2911370.99 582274.20 20.00
3-4 years (Inclusive) 27852241.32 27852241.32 100.00
4-5 years (Inclusive) 556497.21 556497.21 100.00
Over 5 years 40198940.63 40198940.63 100.00
Total 1004714745.30 82353722.64
Provision reversal or recovery of bad debts of current period.Notes to the financial statements Page 163Bengang Steel Plates Co. Ltd.Notes to the financial statements
Change in the Current Period
Reversal
Items 2024/12/31 Write-off or Other 2025/12/31
Provision or
Cancellation Changes
Recovery
Provision
for
accounts 107374488.69 32903336.61 9727857.98 130549967.32
receivable
bad debts
Total 107374488.69 32903336.61 9727857.98 130549967.32
(3) Accounts Receivable Written Off in the Current Period
Item Write-off Amount
Accounts Receivable Written Off 9727857.98
(4) Top five debtors based on accounts receivable and contract assets at the
year-end
Percentage of Provision fordoubtful debts
Accounts Contract Accounts total for Accounts
Company Receivable Asset Ending Receivable and Accounts
Ending Balance Balance Contract Asset Receivable
Receivable and
Ending Balance and Contract Contract Asset
Asset (%) EndingBalance
Angang
Group
International
Economic & 624594464.67 624594464.67 48.63 6245944.65
Trade Co.Ltd. Benxi
Branch
Benxi
Bengang Steel
Sales Co. Ltd. 172669060.23 172669060.23 13.44
Taicang
CIMC
Container
Manufacture 60592424.45 60592424.45 4.72 605924.24
Co. Ltd.Liaoning
Northern Coal
Chemical 53085518.70 53085518.70 4.13 4246806.95
(Group) Co.Notes to the financial statements Page 164Bengang Steel Plates Co. Ltd.Notes to the financial statements
Percentage of Provision for
Accounts total doubtful debtsAccounts Contract
Company Receivable Asset Ending Receivable and Accounts
for Accounts
Ending Balance Balance Contract Asset Receivable
Receivable and
Ending Balance and Contract Contract Asset
Asset (%) EndingBalance
Ltd.Benxi Nanfen
Xinhe
Metallurgical 48196244.68 48196244.68 3.75 48196244.68
Co. Ltd.Total 959137712.73 959137712.73 74.67 59294920.52
2. Other receivables
Items 2025/12/31 2024/12/31
Interest receivable
Dividends receivable 31000000.00 224898383.95
Other receivables 24731976.38 174911279.65
Total 55731976.38 399809663.60
1. Dividends receivable
（1）Breakdown of Dividends receivable
Items（or company） 2025/12/31 202412/31
Bengang Puxiang Cool Rolling Steel
163898383.95
Sheet Co. Ltd.Changchun Bengang Steel Sales Co.
3000000.00
Ltd.Guangzhou Bengang Steel & Iron
31000000.0058000000.00
Trading Co. Ltd.Total 31000000.00 224898383.95
Less: Provision for bad debts
Total 31000000.00 224898383.95
（2）Significant dividend receivable overdue for more than one year
Notes to the financial statements Page 165Bengang Steel Plates Co. Ltd.Notes to the financial statements
Reasons for Whether
Company Ending Balance Age uncollected impairment has
dividends occurred and thebasis for judgment
Guangzhou Bengang
Steel & Iron Trading 31000000.00 1-2 years Retained for
Co. Ltd. operations
Not Applicable
Total 31000000.00
2. Other Receivables
(1) Other receivables disclosed by aging
Items 2025/12/31 2024/12/31
Within 1 year (inclusive) 718602.46 57266931.07
1-2 years (inclusive) 1352428.89 89144027.11
2-3 years (inclusive) 1966327.11 13450953.62
3-4 years (inclusive) 12539103.20 31188795.54
4-5 years (inclusive) 24463290.56 842882.51
Over 5 years 52360468.13 52141851.60
Subtotal 93400220.35 244035441.45
Less: bad debts 68668243.97 69124161.80
Total: 24731976.38 174911279.65
Notes to the financial statements Page 166Bengang Steel Plates Co. Ltd.Notes to the financial statements
(2) Other receivables disclosed by method of bad debt provision
2025/12/312024/12/31
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Items
Percentage ProvisionAmount Percentage Book Value Percentage
Provision Provision Book Value
Amount （%） % Amount %
Percentage Percentage
（）（）（%）（%）
Provision
assessed 15752285.66 16.87 15752285.66 100.00 15752285.66 6.45 15752285.66 100.00
individually
Provision
assessed by
grouping 77647934.69 83.13 52915958.31 68.15 24731976.38 228283155.79 93.55 53371876.14 23.38 174911279.65
credit risk
characteristics
Including:
Aging 56380806.01 60.36 52915958.31 93.85 3464847.70 201016027.11 82.37 53371876.14 26.55 147644150.97
portfolio
Risk-free
21267128.6822.7721267128.6827267128.6811.1727267128.68
portfolio
Total 93400220.35 100.00 68668243.97 24731976.38 244035441.45 100.00 69124161.80 174911279.65
Notes to the financial statements Page 167Bengang Steel Plates Co. Ltd.Notes to the financial statements
Significant Provision for bad debts assessed individually：
2025/12/312024/12/31
Item Other Provision for Bad debts Basis for Other Provision for
receivables bad debts ratio（%） provision receivables bad debts
Benxi Steel
(Group)
Third
Construction 12504978.59 12504978.59 100.00 Bankrupt 12504978.59 12504978.59
Engineering
Co. Ltd.Total 12504978.59 12504978.59 12504978.59 12504978.59
Other receivables tested for impairment by portfolio:
Risk-free portfolio
2025/12/31
Item
Carrying amount Provision for bad debts Bad debts ratio (%)
Risk-free portfolio 21267128.68
Total 21267128.68
Portfolio tested by aging
2025/12/31
Items
Carrying amount Provision for bad debts Bad debts ratio (%)
Within 1 year 718602.46 7186.02
1.00
(inclusive)
1-2 years (inclusive) 1311521.74 131152.17 10.00
2-3 years (inclusive) 1966327.11 393265.42 20.00
3-4 years (inclusive) 12539103.20 12539103.20 100.00
4-5 years (inclusive) 3237069.03 3237069.03 100.00
Over 5 years 36608182.47 36608182.47 100.00
Total 56380806.01 52915958.31
(3) Provision for Bad Debts
Notes to the financial statements Page 168Bengang Steel Plates Co. Ltd.Notes to the financial statements
Stage one Stage two Stage three
Lifetime Lifetime
12-month
Provision for bad debts expected credit expected credit Total
expected credit
loss (not credit loss (credit
loss
impaired) impaired)
Beginning balance 572260.25 11604593.43 56947308.12 69124161.80
Beginning balance in
current period
--Transfer to Stage two -65576.09 65576.09
--Transfer to Stage
-6269551.606269551.60
three
--Reversal to Stage two
--Reversal to Stage one
Current period
-499498.14-4876200.3313620252.408244553.93
provision
Current period reversal
Current period
write-back
Current period
-8700471.76-8700471.76
write-off
Other change
Ending balance 7186.02 524417.59 68136640.36 68668243.97
(4) Provision reversal or recovery of bad debts of current period
Change in the Current Period
Reversal
Items 2024/12/31 Write-off or Other 2025/12/31
Provision or
Cancellation Changes
Recovery
Provision
for other
receivables 69124161.80 8244553.93 8700471.76 68668243.97
bad debts
Total 69124161.80 8244553.93 8700471.76 68668243.97
(5) Written Off in the Current Period
Notes to the financial statements Page 169Bengang Steel Plates Co. Ltd.Notes to the financial statements
Item Write-off Amount
Other receivables written off 8700471.76
(6) Classification by Nature
Nature 2025/12/31 2024/12/31
Subsidy for the "Living show
87177700.00
belt" Project
Intercompany Balances 89793338.08 153899831.94
Others 3606882.27 2957909.51
Total 93400220.35 244035441.45
(7) Top five debtors based on other receivables at the year-end
Accounts Percentage Provision for
Accounts Receivable of total doubtful debtsand Accounts for Accounts
Company Receivable Contract AssetEnding Ending Balance Contract Receivable Receivable and
Balance Asset and Contract AssetEnding Contract Ending
Balance Asset (%) Balance
Yantai Bengang
Steel & Iron Sales Currentaccount 21267128.68
1-2years
4-5 years 22.77Co. Ltd.
Benxi Steel (Group)
Third Construction Current over 5
Engineering Co. account 12504978.59 years 13.39 12504978.59
Ltd.Benxi Steel (Group)
First Construction Current over 5
Engineering Co. account 3247307.07 years 3.48 3247307.07
Ltd.Benxi Steel (Group) Current
Co. Ltd. account 2674500.00
1-2 years
2-3 years 2.86 413000.00
Liaoning Huawei
Coal Preparation Currentaccount 2261360.00
over 5
Co. Ltd. years
2.422261360.00
Total 41955274.34 44.92 18426645.66
Notes to the financial statements Page 170Bengang Steel Plates Co. Ltd.Notes to the financial statements
3. Long-term Equity Investments
2025/12/312024/12/31
Item Book Value Provision for impairment Carrying amount Book Value Provision for impairment Carrying amount
Investment in Subsidiaries 2422543459.43 2422543459.43 2391943459.43 2391943459.43
Investment in Associates and Joint Ventures 43269884.04 43269884.04 45413221.72 45413221.72
Total 2465813343.47 2465813343.47 2437356681.15 2437356681.15
1. Investment in Subsidiaries
Change in the Current Period
Beginning Provision for Ending
Beginning balance balance of Impairment Ending balance of balance of
Name of entity Additional Reduction in Provision
of investment Provision for in the Other investment for
Investment Investment impairment
impairment Current
Period
Tianjin Bengang Steel Trading Co.
230318095.80230318095.80
Ltd.Changchun Bengang Steel Sales Co.
28144875.3628144875.36
Ltd.Guangzhou Bengang Steel Trading 200000000.00 200000000.00
Notes to the financial statements Page 171Bengang Steel Plates Co. Ltd.Notes to the financial statements
Change in the Current Period
Beginning Provision for Ending
Beginning balance balance of Impairment Ending balance of balance of
Name of entity Additional Reduction in Provision
of investment Provision for in the Other investment for
Investment Investment impairment
impairment Current
Period
Co. Ltd.North Hengda Logistics Co. Ltd. 169661869.19 169661869.19
Shenyang Bengang Metallurgical
200000000.0028144875.36228144875.36
Technology Co. Ltd.Benxi Bengang Steel Sales Co. Ltd. 30000000.00 30000000.00
BenGang POSCO Cold Rolled Sheet
1019781571.101019781571.10
Co. Ltd.Yantai Bensteel Sales Co. Ltd. 219100329.41 219100329.41
Dalian Benruitong Automotive
65000000.0065000000.00
Materials Technology Co. Ltd.Shanghai Ben Gang Metallurgical
229936718.57229936718.57
Technology Co. Ltd.Green Gold (Benxi) Renewable
30600000.0030600000.00
Resources Co. Ltd.Notes to the financial statements Page 172Bengang Steel Plates Co. Ltd.Notes to the financial statements
Change in the Current Period
Beginning Provision for Ending
Beginning balance balance of Impairment Ending balance of balance of
Name of entity Additional Reduction in Provision
of investment Provision for in the Other investment for
Investment Investment impairment
impairment Current
Period
Total 2391943459.43 58744875.36 28144875.36 2422543459.43
2. Investment in Associates and Joint Ventures
For investment in associates and joint ventures please refer to Note 5 (9) Long-term Equity Investments.Notes to the financial statements Page 173Bengang Steel Plates Co. Ltd.Notes to the financial statements
4. Operating Revenue and Operating Costs
1. Operating Revenue and Operating Costs
Current period Previous period
Item
Revenue Cost Revenue Cost
Principal
45363281780.7247821196765.1050700530631.9754540344179.60
business
Other
1245152063.961231298098.651295762825.871309833559.74
business
Total 46608433844.68 49052494863.75 51996293457.84 55850177739.34
2. Breakdown of Operating Revenue and Operating Costs
Current period
Item Principal business Principal business Other business Other business
revenue revenue revenue costs
Classified by
Time of Transfer
of Goods:
Recognized at a
45363281780.7247821196765.101235446887.551231278319.41
Point in Time
Recognized over
9705176.4119779.24
a Period of Time
Total 45363281780.72 47821196765.10 1245152063.96 1231298098.65
Classified by
Operating
Region:
Domestic 36766360467.95 38708460173.56 1245152063.96 1231298098.65
Overseas 8596921312.77 9112736591.54
Total 45363281780.72 47821196765.10 1245152063.96 1231298098.65
5. Income on investment
Notes to the financial statements Page 174Bengang Steel Plates Co. Ltd.Notes to the financial statements
Item Current period Previous period
Income from long-term equity investment (cost method) -2143337.68 -1497124.69
Income from long-term equity investment (equity
180557967.43163898383.95
method)
Gains from Debt Restructuring 17446268.06 6459490.86
Other -23527129.04 -47966970.21
Total 172333768.77 120893779.91
17. Supplementary information
(1) Details of non-recurring profit and loss
Items Amount Notes
Gains or Losses from the Disposal of Non-Current Assets including
the reversal of previously recognized impairment provisions. -44758947.66
Government Grants Recognized in Profit or Loss for the Period
except for those that are closely related to the company’s normal
business operations comply with national policies are granted based
on predetermined standards and have a continuous impact on the 104879166.04
company's profit or loss.Fair Value Gains or Losses from Financial Assets and Liabilities
Held by Non-Financial Enterprises as well as disposal gains or
losses from financial assets and liabilities excluding effective
hedging activities related to the company's normal operations.Funds Occupation Fees Charged to Non-Financial Enterprises
recognized in profit or loss for the period.Gains or Losses from Entrusted Investments or Asset Management
by third parties.Gains or Losses from Loans Entrusted to External Parties.Losses fromAsset Impairment Due to Force Majeure such as natural
disasters.Reversal of Impairment Provisions for Individually Tested
Receivables. 21641769.22
Gains fromAcquiring Subsidiaries Associates or Joint Ventures
where the acquisition cost is lower than the acquirer's share of the
investee’s identifiable net assets at fair value.Net Profit or Loss of a Subsidiary from the Beginning of the Period
to the Merger Date in a business combination under common
control.Gains or Losses from Non-Monetary Asset Exchanges.Gains or Losses from Debt Restructuring. 17512835.36
One-Time Expenses Due to Discontinuation of Business Activities
such as severance payments for employees.One-Time Impact on Profit or Loss Due to Changes in Tax
Accounting or Other Legal and Regulatory Adjustments.One-Time Share-Based Payment Expenses Recognized Due to the
Notes to the financial statements Page 175Bengang Steel Plates Co. Ltd.Notes to the financial statements
Items Amount Notes
Cancellation or Modification of an Equity Incentive Plan.Gains or Losses from Changes in Fair Value of Payable Employee
Compensation for cash-settled share-based payments after the
vesting date.Gains or Losses from Fair Value Changes of Investment Properties
measured using the fair value model.Gains from Transactions Conducted at Unfair Market Prices.Gains or Losses from Contingent Events Unrelated to the Company’s
Normal Business Operations.Management Fee Income from Entrusted Operations.Other Non-Operating Income and Expenses Not Included in the
5168882.16
Above Categories.Other Gains or Losses that Meet the Definition of Non-Recurring
Gains and Losses.Subtotal 104443705.12
Income Tax Effect 19492491.17
Effect of Non-controlling Interests (After Tax) 99931.61
Total 84851282.34
(2) Net asset yield and earnings per share
Weighted average Earnings per share (Yuan)
Profit in the Reporting Period net assets yield
Basic EPS Diluted EPS
(%)
Net profit attributable to ordinary
-39.74-0.960-0.960
shareholders
Net profit attributable to ordinary
shareholders after deducting -40.77 -0.980 -0.980
non-recurring profit and loss
Note: Assuming the company’s convertible bonds are converted into ordinary shares the
Notes to the financial statements Page 176Bengang Steel Plates Co. Ltd.Notes to the financial statements
outstanding number of ordinary shares will increase by 14255658.48 shares and net
profit will increase by CNY 307187521.56 resulting in an increase of CNY 0.08 per
share in earnings per share. This indicates that the potential ordinary shares are
anti-dilutive rather than dilutive and therefore are not considered in the calculation of
diluted earnings per share. Diluted earnings per share is determined based on basic
earnings per share.The above figures are calculated using the following formulas:
(1) Weighted Average Return on Net Assets
Weighted Average Return on Net Assets = P? / (E? + NP ÷ 2 + E? × M? ÷ M? –
E? × M? ÷ M? ± E? × M? ÷ M?)
Where:
P? corresponds to net profit attributable to the company's ordinary shareholders and net
profit attributable to the company's ordinary shareholders after deducting non-recurring
gains and losses. NP represents net profit attributable to the company's ordinary
shareholders. E ? is the opening balance of net assets attributable to the company's
ordinary shareholders. E ? represents the increase in net assets attributable to the
company’s ordinary shareholders due to new share issuance or debt-to-equity conversion
during the reporting period. E ? represents the decrease in net assets attributable to the
company’s ordinary shareholders due to share repurchases or cash dividends during the
reporting period. M ? is the number of months in the reporting period. M ? is the
cumulative number of months from the month following the increase in net assets to the
end of the reporting period. M ? is the cumulative number of months from the month
following the decrease in net assets to the end of the reporting period. E ? represents
changes in net assets attributable to the company’s ordinary shareholders due to other
transactions or events. M? is the cumulative number of months from the month following
the occurrence of other net asset changes to the end of the reporting period.
(2) Basic Earnings per Share
Basic Earnings per Share = P? ÷ S where S = S? + S ? + S? × M? ÷ M? – S? ×
M? ÷ M? – S?
Where:
P? represents net profit attributable to the company’s ordinary shareholders or net profit
attributable to the company’s ordinary shareholders after deducting non-recurring gains
and losses. S is the weighted average number of outstanding ordinary shares. S?is the total
Notes to the financial statements Page 177Bengang Steel Plates Co. Ltd.Notes to the financial statements
number of shares at the beginning of the year. S ? represents the increase in shares due to
capital reserves being converted into share capital or stock dividends during the reporting
period. S ? represents the increase in shares due to new share issuance or debt-to-equity
conversion during the reporting period. S ? represents the decrease in shares due to share
repurchases during the reporting period. S?represents the number of shares reduced due to
a share consolidation during the reporting period. M ? is the number of months in the
reporting period. M ? is the cumulative number of months from the month following the
increase in shares to the end of the reporting period. M ? is the cumulative number of
months from the month following the decrease in shares to the end of the reporting
period.
(3) Diluted Earnings per Share
Diluted Earnings per Share = P ? / (S? + S ? + S? × M? ÷ M? – S? × M? ÷ M?
– S? + the weighted average number of additional ordinary shares from warrants stock
options convertible bonds etc.)
Where:
P ? represents net profit attributable to the company’s ordinary shareholders or net profit
attributable to the company’s ordinary shareholders after deducting non-recurring gains
and losses considering the effect of dilutive potential ordinary shares and adjusted
according to IFRS and relevant regulations. When calculating diluted earnings per share
the company considers the effect of all dilutive potential ordinary shares on net profit
attributable to ordinary shareholders or net profit attributable to ordinary shareholders
after deducting non-recurring gains and losses and on the weighted average number of
shares. The calculation follows a sequence from the most dilutive to the least dilutive until
the minimum diluted earnings per share is reached.Bengang Steel Plates Co. Ltd.
2 April 2026
Notes to the financial statements Page 178Bengang Steel Plates Co. Ltd.Notes to the financial statements
Notes to the financial statements Page 179
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