Bengang Steel Plates Co. Ltd. Annual Report 2024

Bengang Steel Plates Co. Ltd.Annual Report 2024

1Bengang Steel Plates Co. Ltd. Annual Report 2024

2024 Annual Report

Ⅰ. Important Notice Table of Contents and Definitions

The Board of Directors the Supervisory Board and all Directors Supervisors and Senior

Management of the Company ensure the authenticity accuracy and completeness of this annual

report and confirm that there are no false records misleading statements or material omissions. They

assume individual and joint legal responsibility for the report.Huang Zuowei the person in charge of the company Zheng Zhengli the person in charge of

accounting work and XXX3 the person in charge of the accounting organization (accounting officer)

hereby confirm that the financial report in this annual report is true accurate and complete.All directors have attended the board meeting for reviewing this report.This report involves forward-looking statements such as future plans which do not constitute a

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

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

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

refer to the content of Section 3-11 "Risks Faced by the Company and Countermeasures". "China

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

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

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

designated media. Investors are kindly advised to pay attention to investment risks.The Company plans not to pay cash dividends issue bonus shares or convert capital reserves into

share capital.

2Bengang Steel Plates Co. Ltd. Annual Report 2024

Table of Contents

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

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

III. Management Discussion and Analysis ............ 11

IV. Corporate Governance ........................... 38

V. Environment and Social Responsibilities.......... 58

VI. Important Events ............................... 64

VII. Status of Share Capital Changes and Sharehold. 106

VIII. Status of Preferred Shares .................. 115

IX. Status of Bonds ............................... 116

X. Financial Report ............................... 120

3Bengang Steel Plates Co. Ltd. Annual Report 2024

Reference File Directory

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

financial officer and chief accountant;

2. Original audit report stamped by the accounting firm and signed and stamped by certified

public accountants;

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

reporting period;

4. Annual reports published in other securities markets.

4Bengang Steel Plates Co. Ltd. Annual Report 2024

Definition

Terms to be defined Refers to Content of Definition

Bengang Bancai the Company the

Listed Company Refers to Bengang Steel Plates Co. Ltd.Ansteel Refers to Ansteel Group Co. Ltd.Bengang Group Refers to Bengang Group Co. Ltd.Bengang Steel Co. Bengang Co. Refers to Benxi Steel & Iron (Group) Co. Ltd.SSE Refers to Shenzhen Stock Exchange

Liaoning Provincial State-asset Refers to Liaoning State-owned Asset Supervisory and Administration Management Committee

Bengang Posco Refers to Bengang Posco Cold-rolled Sheet Co. Ltd.Ansteel Finance Co. Refers to Ansteel Group Finance Co. Ltd.Angang Refers to Angang Steel Company Limited

Vanadium & Titanium Co. Refers to Pangang Group Vanadium & Titanium Resources Co. Ltd.

5Bengang Steel Plates Co. Ltd. Annual Report 2024

Ⅱ. Company Profile and Main Financial Index

I. Company Information

Stock abbreviation Bengang Bancai Bengangban B Stock Code 000761 200761

Stock exchange for listing Shenzhen Stock Exchange

Company name in Chinese 本钢板材股份有限公司

Abbreviation of Company

name in Chinese 本钢板材

Company name in English

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

name in English (If any) BSP

Legal representative Huang Zuowei

Registered Address No 16 Renmin Road Pingshan District Benxi City Liaoning Province

Postal Code of Registered

117000

Address

Historical Changes of

None

Registered Address

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

Postal Code of Office

117000

Address

Company Website None

Email zhengzhengli76@126.com

II. Contact Information

Secretary of the Board Representative of Stock Affairs

Name Zheng Zhengli Chen Liwen

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

Tel 024-47827003 024-47828980

Fax 024-47827004 024-47827004

Email zhengzhengli76@126.com bgbc000761@126.com

6Bengang Steel Plates Co. Ltd. Annual Report 2024

III. Information Disclosure and Place for Consulting

Stock exchange website for annual report disclosure http://www.szse.cn

Designated media and website for annual report disclosure "China Securities Journal" "Securities Times" CNINFO (http://www.cninfo.com.cn)

Annual report archive location Secretary Office of the Board Bengang Steel Plate Co. Ltd.IV. Change of Business Registration

Organization Code 91210000242690243E

Changes of principal business activities since listing (if any) No change

On August 20 2021 the company's original actual controller

the State-owned Assets Supervision and Administration

Commission of Liaoning Provincial People's Government

signed the "Agreement on the Free Transfer of State-owned

Equity of Benxi Steel Group Co. Ltd. between the State-owned

Assets Supervision and Administration Commission of Liaoning

Changes of the controlling shareholder in the past (is any) Provincial People's Government and Angang Group Co. Ltd." The State-owned Assets Supervision and Administration

Commission of Liaoning Province transferred 51% of its shares

in Benxi Steel Group Co. Ltd. to Angang Group Co. Ltd. The

business registration change was completed on October 12

2021 and Angang Group Co. Ltd. became the actual controller

of the company. The company's direct controlling shareholder

remains unchanged still being Benxi Steel (Group) Co. Ltd.V. Other Information

The information of accounting Firm engaged by the Company:

Name of the accountants’ firm BDO China Shu Lun Pan Certified Public Accountants LLP

Address of the accountants’ firm Address: 4/F 61 Nanjing Rd. East Huangpu Shanghai

Name of the signing auditors Wang Hongna Fu Yangyi

Sponsor engaged by the Company to conduct sustained supervision during the reporting period

□Applicable □Not applicable

Financial advisor responsible for ongoing supervision during the reporting period

□Applicable □Not applicable

VI. Key accounting data and financial indicators

Whether the Company needs to retrospectively adjust or restate the accounting data of previous years

□Yes □No

Reasons for retrospective adjustment or restatement

Business Combinations under Common Control

Change

2023 compared to the 2022

2024 previous year

Prior to After After Prior to After

adjustment adjustment adjustment adjustment adjustment

Operating

income (RMB) 51266361501.22 57814969351.65 57957301717.02 -11.54% 62616621627.60 62950821627.81

Net profit

attributable to -5037271398.28 -1742574163.92 -1720871697.00 -192.72% -1232976557.37 -1220743024.01

the

7Bengang Steel Plates Co. Ltd. Annual Report 2024

shareholders of

the listed

company

(RMB)

Net profit after

deducting of

non-recurring

gain/loss

attributable to -5221601823.63 -2067775288.69 -2062055810.29 -153.22% -1416415028.51 -1418647368.46

the

shareholders of

listed company

(RMB)

Net Cash flow

generated by

business 1100287994.25 4329351258.30 4346233881.23 -74.68% 1276362965.56 1195846602.31

operation

(RMB)

Basic earnings

per share -1.226 -0.424 -0.419 -192.60% -0.300 -0.297

(RMB/Share)

Diluted

earnings per

share -1.226 -0.424 -0.419 -192.60% -0.300 -0.297

(RMB/Share)

Weighted

average net -34.29% -9.73% -9.60% -24.69% -5.68% -5.63%

assets yield

Change

2023/12/31 compared to the 2022/12/31

2024/12/31 previous year

Prior to Prior to

After adjustment After adjustment After adjustment

adjustment adjustment

Gross assets

(RMB) 45815896140.58 46181979851.06 46517731929.05 -1.51% 44459650119.11 44918710936.65

Net assets

attributable to

shareholders of

the listed 11887217861.48 17009969496.07 17208525613.69 -30.92% 18789151216.62 17186714934.88

company

(RMB)

In the most recent three accounting years the lower of the net profit before and after deducting non-recurring gains and losses has

been negative and the audit report for the most recent year indicates uncertainty regarding the company's ability to continue as a

going concern

□Yes □No

The lower of the net profit before and after deducting non-recurring gains and losses is negative

□Yes □No

Item 2024 2023 Notes

Operating income (RMB) 51266361501.22 57957301717.02 Total operating income

Income from the consolidated

subsidiary North Hengda

Logistics Co. Ltd. from the

Amount deducted from 4271862046.64 5383378945.20 beginning of the year to the operating income (RMB) consolidation date including

income from the sale of raw

materials waste products and

services provided

Operating income after

deductions (RMB) 46994499454.58 52573922771.82

Amount of operating income

after deductions

8Bengang Steel Plates Co. Ltd. Annual Report 2024

VII. Differences between CAS and IFRS

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

accounting standards.□Applicable □Not applicable

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

during the reporting period.

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

accounting standards.□Applicable □Not applicable

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

during the reporting period.VIII. Key financial indicators by quarter

Unit：RMB

First quarter Second quarter Third quarter Fourth quarter

Operation income 14807070392.43 13557468894.37 11803800343.86 11098021870.56

Net profit attributable

to the shareholders of -905564796.05 -645385341.66 -1654743264.77 -1831577995.80

the listed company

Net profit after

deducting non-

recurring gain/loss

attributable to the -917000630.43 -704651975.49 -1707422431.70 -1892526786.01

shareholders of listed

company

Net cash flows

generated by operating 520202722.95 574888673.59 1310460630.00 -1305264032.29

activities

Whether the above financial indicators or their totals differ materially from the financial indicators disclosed in the company's

previously released quarterly or semi-annual reports.□Yes □No

IX. Items and Amount of Non-recurring Profits and Losses

□Applicable □Not applicable

Unit：RMB

Item 2024 2023 2022 Notes

Gains and losses on disposal of non-current assets (including the

write off part of the provision for impairment) -35999024.90 298940955.41 3648546.62

Government subsidy attributable to profit and loss of current

period (except such government subsidy closely related to the

company's normal business operation meeting the regulation of 180819165.49 100870396.00 91310786.48

national policy and enjoyed constantly in certain quota or

quantity according to a certain standard)

Profit or loss from investment or assets entrusted to others -6626340.44 2879850.07

Reversal of impairment provision for individually tested

receivables 18456201.45

Current period net profit or loss of subsidiaries from the

beginning of the period to the merger date under common control 16120746.07

9Bengang Steel Plates Co. Ltd. Annual Report 2024

business combination.Gains and losses of debt restructuring 6459490.86 5200982.08 1274270.98

Other non-operating income and expenses other than above 40152707.29 -51690430.09 13785641.70

Other profit and loss items that meet the definition of non-

recurring gains and losses 92174927.78

Less: impact of income tax 33544011.54 5654983.26 6778539.23

impact of minority equity (after tax) 8134849.37 -143533.59 391139.95

Total 184330425.35 341184113.29 197904344.45 --

Specific circumstances of other items that meet the definition of non-recurring gains and losses:

□Applicable □Not applicable

The company has no other specific circumstances that meet the definition of non-recurring gains and losses.Explanation of situations where non-recurring gains and losses items listed in the "Public Offering of Securities Information Disclosure

Explanatory Notice No. 1 – Non-Recurring Gains and Losses" are defined as recurring gains and losses items.□Applicable □Not applicable

The company has no situations where non-recurring gains and losses items listed in the "Public Offering of Securities Information

Disclosure Explanatory Notice No. 1 – Non-Recurring Gains and Losses" are defined as recurring gains and losses items.

10Bengang Steel Plates Co. Ltd. Annual Report 2024

III. Management Discussion and Analysis

I. Industry Overview During the Reporting Period

The company operates in the steel industry which is a fundamental sector of China’s national economy a crucial support for building

a modernized strong nation and a key area for achieving green and low-carbon development.In 2024 the steel industry faced multiple challenges and opportunities. Influenced by global economic conditions domestic policy

adjustments and shifts in market demand the industry exhibited characteristics such as "high supply levels demand structure

adjustments strong export growth continuous price declines and squeezed profitability."

According to data from the National Bureau of Statistics China's crude steel production in 2024 was 1.005 billion tons a year-on-

year decrease of 1.7%. Pig iron production was 852 million tons decreased by 2.3% year-on-year while steel production reached 1.4

billion tons increase by 1.1% year-on-year. The apparent consumption of crude steel was 892 million tons marking a 5.4% year-on-

year decline. This indicates that while steel production was somewhat controlled the drop in consumption was significantly larger

than the decline in production reinforcing the imbalance between strong supply and weak demand in the market.Steel exports surged with total exports increasing by 22.7% year-on-year to a record high although the total export value fell by 1.1%

year-on-year. Meanwhile steel imports declined by 10.9% year-on-year. The China Steel Price Index (CSPI) averaged 102.47 points

in 2024 decrease of 8.39% year-on-year. The industry's overall profitability also declined with the total profits of key steel enterprises

amounting to RMB 42.9 billion reflecting a 50.3% year-on-year decrease.In 2024 the Chinese government and relevant authorities introduced policies such as the 2024–2025 Energy Conservation and Carbon

Reduction Action Plan and the Steel Industry Specification Conditions (2024 Revision) (Draft for Public Comment). These policies

continued to implement crude steel output controls promoted a higher proportion of electric arc furnace steelmaking and scrap steel

utilization and enhanced resource efficiency. Additionally they introduced stricter environmental protection and technical standards

as well as comprehensive capacity upgrades and elimination requirements. These measures aim to push the steel industry toward high-

end intelligent green efficient and safe development thereby improving overall industry competitiveness and sustainability. The

policies are expected to have significant impacts including driving industry transformation and upgrading strengthening

environmental protection and resource utilization enhancing product quality and standardization influencing production capacity

distribution and market dynamics optimizing tax policies and market mechanisms and fostering international cooperation and

competitiveness.II. Main Business Operations During the Reporting Period

1.Main Business Main Products and Their Uses

During the reporting period the company's main business activities included steelmaking rolling processing power generation coal

chemical industry special steel bar production railway import and export trade scientific research and product sales. The company

introduced advanced global equipment technology to upgrade and transform the steel business essentially establishing a premium steel

base. It developed a product series of over 60 varieties and more than 7500 specifications with a proportion of high value-added and

high-tech content products reaching over 80%. Leading products such as automotive surface panels home appliance panels petroleum

pipeline steel container steel and shipbuilding steel are widely used in industries such as automotive home appliances petrochemicals

aerospace machinery manufacturing energy and transportation construction decoration and metal products. These products are also

exported to multiple countries and regions.

2.Business Model

Procurement Model: The company’s procurement model includes domestic and foreign procurement. Domestic procurement involves

collaborative purchasing unified bidding (public invitation) inquiry comparison competitive bidding negotiation etc. Foreign

procurement is conducted through long-term agreements direct procurement public and invitation bidding inquiry price comparison

competitive negotiation and consulting procurement mainly handled by Bensteel International Trade Company.Sales Model: The company’s sales are divided into domestic and export sales. Domestic sales mainly focus on futures sales with sales

channels primarily including direct supply circulation and engineering and contract orders are organized monthly in advance

followed by production based on the orders. Various pricing policies such as post-settlement futures customized pricing per plant and

index pricing are implemented based on different regions channels and industries. Export sales are managed by Bensteel International

Trade Company with the company paying an agency fee for export services.

11Bengang Steel Plates Co. Ltd. Annual Report 2024

3.Main Performance Drivers

The company focuses on building a world-class enterprise closely aligning with the strategic deployment of "focusing on five key

areas and pushing for three new breakthroughs." It fully implements the overall work requirements of "stabilizing controlling andimproving three aspects while opening up five new areas." The company promotes the transformation and upgrading of “Reform +Lean” and “Digital + Technology.” It insists on making strategic implementation and brand building key tasks strengthens the "sales

research and production" linkage and vigorously promotes the “one-consistent system” quality management across all processes. The

company is customer-centered meeting user needs and strengthening the construction of the industrial chain ecosystem. The company

focuses on building the competitiveness of automotive steel brands and enhancing its core functions.By prioritizing technological innovation the company accelerates its shift from "extensive" to "intensive" development advancing the

development of new productive forces and continuously shaping new momentum and advantages. The company firmly focuses on the

“Reform + Lean” transformation and upgrading and pursues innovation with integrity achieving deep efficiency transformation which

has led to remarkable results in production operation and enterprise reform.During the reporting period the company’s main business and business model have not changed.III. Core Competence Analysis

The company adheres to an innovation-driven approach and a "premium + service" development model with strategic goals to build

an internationally competitive premium steel plate base a leading domestic special steel base and a comprehensive service provider.By playing a leading role in strategy the company focuses on quality improvement efficiency enhancement product upgrades

technological innovation and green and smart manufacturing. These efforts aim to innovate business management strategies enhance

core competitiveness and drive high-quality green and smart development.

1. Production and Manufacturing Capacity: The company focuses on efficiency adhering to the strategic goal of leading development

in automotive steel. It aims to stabilize production improve quality reduce costs and increase efficiency. The company is strongly

advancing structural adjustments to production lines increasing the proportion of efficient and high-quality production lines and

addressing fluctuations in blast furnace performance. The company has gradually stabilized the blast furnace while maintaining high

output. The integration of production and sales is strengthened allowing for flexible adjustment of sales strategies. The direct supply

ratio of automotive steel and sales to major automotive manufacturers are on the rise. The company continues to deepen "Lean + Basic"

management striving to achieve manufacturing and processing cost advantages over industry standards for key products.

2. Equipment Transformation and Upgrading: In 2024 the company approved a fixed asset investment plan of 1.945 billion yuan. The

company has implemented several key projects including the transformation of the plate energy management center from steam drum

to electric drum supporting power grid renovation for the supercritical power generation project and multiple dust removal system

upgrades for the blast furnace operation area and sintering systems. These projects represent a new round of large-scale technological

transformation and ultra-low emission upgrades.

3. New Product Development Capability: The company successfully developed 58 new product grades achieving orders of 390000

tons. It has overcome technical barriers in the hydrogen energy industry and developed hydrogen pipeline steel grades L245MH and

L360MH with excellent hydrogen resistance performance meeting Sinopec's technical specifications for hydrogen transmission. The

company also developed a 700MPa high-strength steel for photovoltaic brackets (GF700) which offers excellent formability and high

wind resistance. Additionally it achieved stable exports of hot-rolled pile pipe steel (HK490 HK400) to Japan made breakthroughs in

key technologies for high-carbon large-sized special steel products and successfully rolled 0.8mm ultra-thin CP steel using a six-roll

reversible mill.

4. Technological Innovation Capability: The company strengthens university-industry cooperation signing 13 external technology

cooperation projects with institutions like Dalian University of Technology and Northeastern University facilitating the transfer of

mature scientific and technological achievements to the company. The company has participated in the completion of one international

standard (ISO) one national standard two industry standards and two group standards. It has drafted 87 enterprise standards. The

company has filed 311 patent applications including 20 overseas and received 101 patents with 32 being invention patents. In terms

of scientific and technological achievements the company has won 12 provincial and ministerial-level awards including the second

prize of the National Science and Technology Progress Award for a project on electromagnetic regulation technology for large metal

billet preparation and first and second prizes in metallurgical science and technology progress.

5. Green Development Capability: The company actively responds to national environmental protection policies implementing 111

ultra-low emission projects to fulfill its environmental responsibilities. In 2024 the company successfully completed the "semi-steel"

production path and achieved a 30% carbon reduction target earning recognition as a "Best Practice Energy Efficiency Benchmark

Enterprise" under the "Double Carbon" initiative. It was also selected as a 2024 "Carbon Peak Leader" enterprise in China. The

company has also been actively promoting the recycling and utilization of by-products in the smelting industry and expanding its

photovoltaic power generation projects achieving more than 17 MW of grid-connected electricity.

6. Intelligent Manufacturing Capability: In 2024 the company focused on deep applications in projects like integrated control of plate

steel production energy management and smart material yards. The company achieved a saving of 177 million yuan in effectiveness

and improved information security through intrusion prevention network construction. The company is advancing towards high-quality

development in line with the big data era. Guided by the core indicators of the 14th Five-Year Plan the company is advancing the

construction of automation informatization digitization and intelligence with an automation rate of key production line areas reaching

96% and full coverage of production execution system construction. The completion rate of 3D job replacement four-dimensional

production lines and four-dimensional factories increased by 30%.

12Bengang Steel Plates Co. Ltd. Annual Report 2024

IV. Main Business Analysis

1. Overview

In 2024 faced with a challenging and complex market environment the company firmly upheld the concept of excellence strengthened

systematic thinking proactively planned and responded positively ensuring overall stability in production and operations. The annual

output reached 9.88 million tons of pig iron 10.72 million tons of crude steel and 13.59 million tons of commercial steel. Key

achievements throughout the year are as follows:

The company fully advanced the enhancement of production and operational control capabilities. The ability to maintain efficient and

stable production was further strengthened and the adjustment of production line structures was vigorously promoted. The company

successfully overcame the persistent challenges in blast furnace fluctuations ensuring high and steady output. The integration of

production and sales was further strengthened allowing for flexible adjustment of sales strategies optimizing resource allocation and

deepening market penetration in regional markets with a focus on national key projects and actively expanding markets for pipeline

steel and container steel. The ability to reduce costs and increase efficiency was also enhanced adhering to the principle of "ensuring

survival" through optimization of technical and economic indicators ensuring new production lines reached expected capacity and

efficiency and optimizing the production line structure to maximize resource savings.The company made breakthroughs in industry transformation and upgrading. With a firm focus on high-quality development the

company promoted transformation and upgrading towards higher-end intelligent and green directions. Achievements in digitalization

included the establishment of a smart environmental protection and carbon data management platform as well as the online collection

of LCA data. The company further deepened its digital infrastructure and the integration of informatization and industrialization

management systems was evaluated at a 2A level. In terms of green and low-carbon development the company pioneered the "50%

scrap steel + electric furnace" low-carbon metallurgy process and launched cold-rolled galvanized automotive sheets as a green and

low-carbon product at the China Brand Expo. The company also initiated energy efficiency actions eliminating outdated mechanical

and electrical equipment.The company continued to drive technological innovation. It achieved certification as a "National High-Tech Enterprise" and Benxi

POSCO was recognized as a "Liaoning Province Innovative SME." Significant progress was made in key process technologies and

scientific and technological achievements continued to rise. The company increased its efforts in new product development with 58

new product grades developed in 2024. The company focused on the development of products for China’s hydrogen energy industry

and new energy industry completing the development of various grades of precision tubing steel. In addition efforts were made to

improve product certification with 22 grades of soft steel high-strength steel and hot-stamping steel passing certification by Hozon

Auto laying the foundation for supplying full vehicles.The company also made steady progress in enhancing reform and management capabilities. Under the guidance of the 14th Five-Year

Plan the company continued to improve market-oriented management and operational mechanisms laying a solid foundation for high-

quality development. Lean management capabilities were further strengthened with plant-specific strategies and on-site evaluations

implemented reinforcing operational standardization and promoting precision management. Reform demonstration actions were

further deepened aligning organizational restructuring with corporate strategy and enhancing management efficiency in operations

environmental protection and digitalization. Risk control capabilities were strengthened with efforts to secure national policy support

revitalize idle assets and reinforce safety management through the "100-Day Action" campaign. Furthermore daily environmental

supervision legal risk management equipment precision enhancement and audit supervision were all reinforced.

2. Operating Income and Operating Cost

(1) Breakdown of Operating Income

Unit：RMB

2024 2023 Change over

Amount Proportion Amount Proportion last year

Total operating

51266361501.22100%57957301717.02100%-11.54%

income

By industries

Industry 51266361501.22 100.00% 57957301717.02 100.00% -11.54%

By product

Steel plate 50063324955.34 97.65% 55988417376.02 96.60% -10.58%

Others 1203036545.88 2.35% 1968884341.00 3.40% -38.90%

By region

Domestic 42160555732.72 82.24% 49647890061.78 85.66% -15.08%

International 9105805768.50 17.76% 8309411655.24 14.34% 9.58%

13Bengang Steel Plates Co. Ltd. Annual Report 2024

By sales model

Direct selling 30551325723.59 59.59% 39218786088.06 67.67% -22.10%

Distribution 20715035777.63 40.41% 18738515628.96 32.33% 10.55%

(2) Industries products regions or sales models accounting for more than 10% of the company's revenue or

operating profit

□Applicable □Not applicable

Unit：RMB

Operating Operating Gross

Operating income Operating costs

Gross income costs change margin

margin change over over last change over

last year year last year

By industries

Industry 51266361501.22 54693756805.43 -6.69% -11.54% -6.43% -5.83%

By product

Steel plate 50063324955.34 53477611508.35 -6.82% -10.58% -5.37% -5.89%

Others 1203036545.88 1216145297.08 -1.09% -38.90% -37.33% -2.53%

By region

Domestic 42160555732.72 45296220341.15 -7.44% -15.08% -11.24% -6.34%

International 9105805768.50 9397536464.28 -3.20% 9.58% 26.65% -4.02%

By sales model

Direct selling 30551325723.59 32496042825.90 -6.37% -22.10% -17.68% -5.72%

Distribution 20715035777.63 22197713979.53 -7.16% 10.55% 16.97% -5.88%

In the case where the statistical scope of the company's main business data has been adjusted during the reporting period the

company's main business data for the most recent year adjusted according to the reporting period's scope.□Applicable □Not applicable

(3) Whether the company's physical sales revenue is greater than service revenue

□Yes □No

Industry

classification Item Unit

Change over

2024 2023 last year

Steel rolling Sales volume ton 14138570.54 13969225.21 1.21%

processing Production volume ton 14118898.30 13906372.52 1.53%

industry Inventory volume ton 389800.00 409472.24 -4.80%

Explanation of the reasons for a year-on-year change of more than 30%

□Applicable □Not applicable

(4) The performance of major sales contracts and major procurement contracts signed by the company as of

the end of this report period

□Applicable □Not applicable

(5) Breakdown of Operating Cost

Products classification

Unit：RMB

Industry Change

classification Item 2024 2023 over last

14Bengang Steel Plates Co. Ltd. Annual Report 2024

year

Amount Proportion Amount Proportion

Steel rolling

processing Raw material 28457161665.87 52.03% 30657207929.57 52.45% -0.42%

industry

Steel rolling Supplement

processing ary 2417464050.80 4.42% 2320478846.15 3.97% 0.45%

industry materials

Steel rolling

processing Spare parts and tools 661794457.35 1.21% 625418731.83 1.07% 0.14%

industry

Steel rolling

processing Fuel 17283227150.52 31.60% 18324184339.22 31.35% 0.25%

industry

Steel rolling

processing Energy 2357300918.31 4.31% 2489984857.58 4.26% 0.05%

industry

Steel rolling

processing Salary and benefits 1422037676.94 2.60% 1776890602.59 3.04% -0.44%

industry

Steel rolling

processing Depreciation 1635343328.48 2.99% 1823650881.61 3.12% -0.13%

industry

Steel rolling

processing Others 459427557.17 0.84% 432532580.89 0.74% 0.10%

industry

Steel rolling

processing Total 54693756805.43 100.00% 58450348769.43 100.00% 0.00%

industry

Note

None

(6) Whether there were any changes in the consolidation scope during the reporting period

□Yes □No

On December 23 2024 the company held the 31st meeting of the 9th Board of Directors where the proposal regarding the acquisition

of equity in North Hengda Logistics Co. Ltd. was reviewed and approved. The company agreed to acquire 100% of the equity in North

Hengda Logistics Co. Ltd. held by Benxi Steel Group Co. Ltd. in cash. After the completion of this transaction Hengda Logistics

became a wholly-owned subsidiary of the company and was included in the scope of the company's consolidated financial statements.The business registration procedures were completed on December 25 2024.

(7) Significant changes or adjustments in the Company’s business products or services during the

reporting period

□Applicable □Not applicable

(8) Information of Main Customers and Main Suppliers

Information of Main Customers

Total sales amount of the top five customers (Yuan) 9861558536.01

Total sales amount of the top five customers accounted for the proportion of total annual sales 19.24%

The proportion of the total sales of the related parties in the top five customers 6.14%

Information of the top 5 customers

15Bengang Steel Plates Co. Ltd. Annual Report 2024

No Name Amount (Yuan) Proportion

Delin Land Port Supply Chain

1 3147919354.04 6.14% Service Co. Ltd.

China North Industries Group

2 2431466454.47 4.74% (Shanghai) Co. Ltd.

Haining Tengchuang New Materials

3 1886454329.54 3.68% Technology Co. Ltd.

4 Hailian Jinhui Technology Co. Ltd. 1281564773.31 2.50%

5 Ningbo AUX Trade Co. Ltd. 1114153624.65 2.17%

Total -- 9861558536.01 19.24%

Other information of principal customers

□Applicable □Not applicable

Information of the Company’s main suppliers

Total purchase amount of the top five suppliers (Yuan) 24831267185.88

Total purchase amount of the top five suppliers accounted for

the proportion of total purchase 45.40%

The proportion of the total purchase of the related parties in the

top five suppliers 36.71%

Information of the top 5 suppliers

No. Name Amount (Yuan) Proportion

Benxi Beiying Steel & Iron

112984510675.0623.74%

(Group) Co. Ltd.Benxi Steel & Iron (Group)

2 4591090218.87 8.39% Mining Co. Ltd.

Liaoning Electric Power Co.

3 Ltd. Benxi Electric Power 2575333402.40 4.71%

Supply Company

Benxi Steel (Group) Mining

4 Liaoyang Ma'erling Pellet 2504269802.79 4.58%

Co. Ltd.Heilongjiang Dragon Coal

5 2176063086.76 3.98% Group Co. Ltd.

Total -- 24831267185.88 45.40%

Other information of principal suppliers

□Applicable □Not applicable

3. Expense

Unit：RMB

2024 2023 Change over Notes to last year significant change

Selling and distribution

142638617.77149659100.28-4.69%

expenses

General and

administrative 702788411.83 619677417.05 13.41%

expenses

Financial Expenses 240331316.82 308033042.23 -21.98%

Research and

86415509.2981247560.736.36%

Development Expenses

16Bengang Steel Plates Co. Ltd. Annual Report 2024

4. Research and Development Input

?Applicable □Not applicable

Name of Project Project Objective Project Progress Expected Target Expected Impact

Currently in the Focused on the

Based on the research basic experimental high-temperature

of 25 types of phase. 20 single bonding properties

complex coking coal coal samples of 25 types of

quality characteristics including main production coking

used by Bensteel the coking coal fat coal developing

aim is to establish the coal one-third blending research

Development and relationship between coking coal and for low-cost coal

Application of Coal the expansion and lean coal have and new resource

Blending Structure rheological been collected. development as Stabilizing coke

Optimization and characteristics of Comparative well as controlling quality and

Control Technology coking coal and its analysis of coal coke particle size reducing blending

Based on Associated coking ability. The quality especially uniformity. The costs.Coal Quality goal is to identify how expansion degree optimization of

Expansion changes in the has been conducted blending structure is

inherent expansion and basic coal expected to reduce

and rheological quality data blending costs by 2

characteristics of accumulated RMB per ton of

coking coal impact resulting in three coke resulting in

key indicators such as blending schemes cost savings of over

coke CSR. to guide coke 7 million RMB

production. annually.Analyze steel

sample

The small furnace microstructures To systematically

using

study the hydrogen smelting process

has been metallography diffusion and Providing data

SEM and EDS

permeation behavior completed and support for

methods to compare

and hydrogen damage laboratory hot improving

Study on Hydrogen performance of rolling processes

their hydrogen

hydrogen

permeation

Permeation Behavior 980MPa grade have been embrittlement

developed. properties. The goal and Hydrogen medium manganese resistance in

is to identify

Embrittlement steel establishing the Subsequent heat automotive high-

advanced high-

Mechanism of 980MPa correlation between treatment processes strength steels

strength steel phases

Grade Medium high-strength steel are completed and guiding future

responsible for

Manganese Steel microstructure (phase hydrogen design and

hydrogen

composition grain embrittlement optimization to

permeation

size etc.) and experimental extend component

hydrogen design and

performance and to

lifespan.embrittlement preparations are

analyze

underway. microstructural sensitivity.characteristics that

mitigate hydrogen

embrittlement.To study the key X52 grade pure Achieve industrial Supporting

production technology hydrogen pipeline trial production of national low-

of X52 grade hot- steel has been trial- X52 grade hydrogen carbon green

Development of Hot-

rolled coil for produced. The pipelines (with development

Rolled Coil for X52

hydrogen pipelines mechanical diameter strategy

Hydrogen Pipeline

conduct R&D and performance of the ≥Φ460mm pressure establishing

industrial trial pipe body meets all ≥6.3MPa wall manufacturing

production to meet inspection thickness ≥12.7mm technology

17Bengang Steel Plates Co. Ltd. Annual Report 2024

hydrogen resistance requirements and and hydrogen purity reserves for pure

performance hydrogen ≥99.9%). The hydrogen

requirements. resistance mechanical and pipelines and

performance process enabling Bensteel

evaluation is performance will to position itself

ongoing. meet DEC in the new energy

standards and market.hydrogen resistance

performance will

meet the

requirements of a

hydrogen

embrittlement

sensitivity index

≤30% and fracture

toughness

≥55MPa·m1/2.2。

Following the

international

standard

development

timeline internal

precision As China is the

verification largest importer of

To develop the experiments have manganese ore

international standard been completed and concentrates

for determining iron and the standard The international globally leading

content in manganese draft has been standard for the development

Revision of

ore and concentrates submitted to the determining iron of international

International Standard

using flame atomic International content in standards for iron

for Determining Iron

absorption Organization for manganese ore and content detection

Content in Manganese

spectrometry. This Standardization concentrates by will strengthen

Ore and Manganese

standard will specify (ISO) at the WD flame atomic China’s influence

Concentrates by Flame

the applicable scope (Working Draft) absorption in the ferroalloy

Atomic Absorption

principle reagents stage. After spectrometry will be field and protect

Spectrometry

equipment testing completing internal published and the rights of

steps result verification inter- implemented. domestic

calculation and test laboratory manganese ore

report. precision importers in

verification international

experiments were trade.conducted with 2

foreign laboratories

and 12 domestic

laboratories

participating.Company R&D Personnel Information

2024 2023 Change over last year

Number of R&D Personnel

13701456-5.91%

(persons)

Percentage of R&D Personnel 10.43% 10.12% 0.31%

Educational Structure of R&D Personnel

Bachelor's Degree 936 1090 -14.13%

Master's Degree 142 152 -6.58%

18Bengang Steel Plates Co. Ltd. Annual Report 2024

Age Structure of R&D Personnel

Under 30 years old 73 75 -2.67%

30-40 years old 354 452 -21.68%

R&D Investment Overview

2024 2023 Change over last year

R&D Investment Amount (in

1595660007.171787193677.09-10.72%

RMB)

R&D Investment as a

Percentage of Operating 3.11% 3.08% 0.03%

revenue

Amount of R&D Investment

0.000.000.00%

Capitalized (in RMB)

Capitalized R&D Investment

as a Percentage of Total R&D 0.00% 0.00% 0.00%

Investment

Reasons for Significant Changes in R&D Personnel Composition and Impact

□Applicable □Not applicable

Reasons for Significant Changes in the Proportion of R&D Investment to Operating Income Compared to the Previous Year

□Applicable □Not applicable

Reasons for the Significant Change in Capitalization Rate of R&D Investment and Explanation of Its Reasonableness

□Applicable □Not applicable

5. Cash Flow

Unit：RMB

Change over last

Item 2024 2023 year

Subtotal of cash inflows from operating activities 56354930509.54 55578037984.00 1.40%

Subtotal of cash outflows from operating

activities 55254642515.29 51231804102.77 7.85%

Net cash flows from operating activities 1100287994.25 4346233881.23 -74.68%

Subtotal of cash inflows from investing activities 137069554.37 87797599.66 56.12%

Subtotal of cash outflows paid for investing

activities 975204696.55 994821507.90 -1.97%

Net cash flows from investing activities -838135142.18 -907023908.24 7.60%

Subtotal of cash inflows from financing activities 7573123889.76 2778395091.10 172.57%

Subtotal of cash outflows from financing

activities 7497684459.06 6348054743.09 18.11%

Net cash flows from financing activities 75439430.70 -3569659651.99 102.11%

Net increase in cash and cash equivalents 390519810.53 -96978218.41 502.69%

Explanation of Major Impact Factors for Significant Year-on-Year Changes

□Applicable □Not applicable

(1) The net cash flow from operating activities decreased by 74.68% compared to the previous period mainly due to a decrease in cash

receipts from sales.

(2) The total cash inflow from investing activities increased by 56.12% compared to the previous period primarily due to higher cash

proceeds from asset disposals.

(3) The total cash inflow from financing activities increased by 172.57% compared to the previous period mainly due to an increase

in borrowings.

(4) The net cash flow from financing activities increased by 102.11% compared to the previous period primarily due to an increase in

borrowings.

19Bengang Steel Plates Co. Ltd. Annual Report 2024

(5) The net increase in cash and cash equivalents increased by 502.69% compared to the previous period mainly due to the increase in

cash received from asset disposals and the increase in borrowings.Explanation of the significant difference between the net cash flow generated from operating activities and the net profit for the

reporting period.□Applicable □Not applicable

Item Current Year Amount

Adjust Net Profit to Operating Cash Flow:

Net Profit -4960117417.26

Add: Asset Impairment Loss 278486334.42

Credit Impairment Loss -50143005.20

Depreciation of Fixed Assets Depletion of Oil and Gas Assets Depreciation

of Productive Biological Assets 1635677342.74

Amortization of Right-of-Use Assets 77920658.71

Amortization of Intangible Assets 9634760.52

Amortization of Long-term Deferred Expenses

Loss on Disposal of Fixed Assets Intangible Assets and Other Long-term

Assets (gain indicated by “-”) -13020778.49

Loss on Fixed Asset Retirement (gain indicated by “-”) 49019803.39

Fair Value Change Loss (gain indicated by “-”)

Financial Expenses (gain indicated by “-”) 272427588.47

Investment Loss (gain indicated by “-”) 42967621.92

Decrease in Deferred Income Tax Assets (increase indicated by “-”) 93801445.51

Increase in Deferred Income Tax Liabilities (decrease indicated by “-”) -77015188.35

Decrease in Inventory (increase indicated by “-”) 157980745.75

Decrease in Operating Receivables (increase indicated by “-”) 1927753242.95

Increase in Operating Payables (decrease indicated by “-”) 1654268244.56

Others 646594.61

Net Cash Flow from Operating Activities 1100287994.25

V. Analysis of Non-core Business

□Applicable □Not applicable

Unit：RMB

Amount Proportion in Whether total profit Explanation of cause sustainable

Mainly for the reversal of

Credit impairment loss

50143005.20 -1.03% impairment provision for No

(losses are marked with a "-")

accounts receivable.Mainly due to the interest

from the discounting of bank

acceptance bills and

Investment income (losses

-42967621.92 0.88% investment income from long- No

are marked with a "-")

term equity investments

accounted for using the equity

method.Asset impairment loss (losses For the provision for

-278486334.42 5.72% No

are marked with a "-") inventory impairment.Mainly for government

Other income 200140947.91 -4.11% No

subsidy gains.Mainly for gains from the

Non-operating income 45789122.58 -0.94% No

disposal of non-current assets

20Bengang Steel Plates Co. Ltd. Annual Report 2024

and insurance compensation.Mainly for the losses from the

Non-operating expenses 54707998.74 -1.12% No

disposal of non-current assets.VI. Assets and Liabilities

1. Significant Change of Assets Components

Unit：RMB

Ending balance of 2024 Beginning balance of 2024 Proporti Notes to

Proportion in Proportion in on

significa

Amount nt the total assets Amount the total assets change change

Cash and cash

2453888470.485.36%2210057475.054.75%0.61%

equivalents

Accounts

receivable 501484081.73 1.09% 1329347134.49 2.86% -1.77%

Inventories 7333084694.27 16.01% 7769551774.44 16.70% -0.69%

Long-term

equity 45413221.72 0.10% 46910346.41 0.10%

investment

Fixed assets 25174210887.726426320453.57 57.68% 54.12% 3.56%

6

Construction in

process 3934442501.50 8.59% 4308404147.31 9.26% -0.67%

Right of use

1685925710.143.68%1319616179.372.84%0.84%

asset

Short-term

371055490.500.81%328000000.000.71%0.10%

loans

Contract

2908598425.736.35%3318451501.357.13%-0.78%

liability

Long-term

2891941462.406.31%1723726700.803.71%2.60%

loans

Lease liability 1633911586.51 3.57% 1342427252.45 2.89% 0.68%

The proportion of foreign assets is high

□Applicable □Not applicable

2. Assets and Liabilities Measured at Fair Value

□Applicable □Not applicable

Unit：RMB

Profit and

loss from Accumulat Impairmed fair ent Amount Amount

Item Beginning

changes in

fair value value accrued

purchase sold in Other

d in the the change Ending balance in the changes in the recognised current current current s

balance

current in equity period period period period

Financial assets

Other

-

equity 974463039. 9334262

122613267.

instruments 83 54.63

37

investment

21Bengang Steel Plates Co. Ltd. Annual Report 2024

-

Total 974463039. 9334262 122613267.

8654.63

37

Financial

liabilities 0.00 0.00 0.00

Other changes

Whether there has been a significant change in the measurement attributes of the company's main assets during the reporting period

□Yes □No

3. Restricted Assets by the End of the Period

Item Ending balance Why asset is restricted

Cash and cash equivalents 863683251.57 Bill margin letter of credit margin

Notes receivable 165968800.17 Pledge

VII. Analysis on Main Subsidiaries and Share Participating Companies

1. Overview

□Applicable □Not applicable

2. Significant equity investment obtained during the reporting period

□Applicable □Not applicable

Unit：RMB

Inves

Progr tment

Inves Acqu ess as profit Discl Discl

Inves Share Fundi Inves Expe Invol

ted Main isitio Prod of the or osure osure

tment holdi ng Partn tment cted ves

comp busin n uct balan loss date index

amou ng sourc ers durati retur litigat

any ess meth type ce for (if (if

nt ratio e on n ion

name od sheet the any) any)

date perio

d

Anno

unce

ment

on

the

Acqu

North isitio

Steel Equit

Heng n of

rollin y Dece

da Acqu 1966

Equit

1612 Equit

g 100.0 Own Long y acqui mber

Logis isitio 1954 None -term 0.00 0746 None

y in

proce 0% fund inves sition 24

tics n 4.86 .07 North

ssing tment comp 2024

Co. Heng

etc. leted

Ltd. da

Logis

tics

Co.Ltd.and

Relat

22Bengang Steel Plates Co. Ltd. Annual Report 2024

ed

Trans

actio

ns

(Ann

ounc

emen

t No.

2024-

073)

19661612

Total -- -- 1954 -- -- -- -- -- -- 0.00 0746 -- -- --

4.86.07

3. Major non-equity investments ongoing during the reporting period.

□Applicable □Not applicable

4. Financial asset investments

(1) Securities investment

□Applicable □Not applicable

The company did not have any securities investments during the reporting period.

(2) Derivative investment situation

□Applicable □Not applicable

The company did not have any derivative investments during the reporting period.

5. Use of raised funds

□Applicable □Not applicable

(1) Use of Raised Funds

□Applicable □Not applicable

Unit：RMB

Fund

Usage

Total Amou

Ratio Purpo

Total Funds nt of

at the Cumu Total se and

Fund Securi Net Funds Cumu Redir Cumu Funds

Fund Total End lative Unuse Destin

raisin ties Raise Used lative ected lative Idle

raisin Raise of the Redir d ation

g Listin d in the Funds Durin Redir for

g d Repor ected Raise of

Metho g Funds Curre Used g the ected More

Year Funds ting Funds d Unuse

d Date (1) nt (2) Repor Funds Than

Period Ratio Funds d

Period ting Two

(3) = Funds

Period Years

(2)/

(1)

Issue

Augus Not

of 6800 6759 1119 4874 72.11 1884 1014

2020 t 4 0 0 0.00% applic

conve 00 20 1.83 23.37 % 96.63 79

2020 able

rtible

23Bengang Steel Plates Co. Ltd. Annual Report 2024

bonds

680067591119487472.1118841014

Total -- -- 0 0 0.00% 00 20 1.83 23.37 % 96.63 -- 79

Explanation of the overall use of raised funds

1. Use of Funds Raised for Investment Projects

The actual use of the funds raised in 2024 is detailed in the attached table "Comparison Table of the Use of Funds Raised by

Public Issuance of Convertible Bonds."

2. Changes in the Implementation Location or Method of Investment Projects

During the reporting period there were no changes in the investment projects funded by the raised funds nor were there any

changes in their implementation locations or methods.

3. Initial investment and replacement of raised funds investment projects

24Bengang Steel Plates Co. Ltd. Annual Report 2024

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

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

Paid Issuance Expenses" agreeing that the company will use raised funds to replace self-raised funds pre-invested in raised funds

investment projects and paid issuance expenses with a total replacement amount of RMB 366180860.17. This replacement does

not involve a disguised change in the use of raised funds does not affect the normal progress of raised funds investment projects

and the replacement time is no more than 6 months from the time the raised funds arrive which is in compliance with relevant laws

and regulations.Before the raised funds were received the company had used self-raised funds to pre-invest in the raised projects according to the

project progress. As of May 31 2020 the amount of self-raised funds pre-invested was RMB 365630860.17 including the steel

plant No. 8 casting machine project was RMB 76278945.59 the iron plant No. 5 blast furnace capacity replacement project was

RMB 119043290.09 the special steel electric furnace upgrade and transformation project was RMB 59948807.90 the CCPP

power generation project was RMB 95098084.16 and the steel plant No. 4-6 converter environmental protection transformation

project was RMB 15261732.43. As of July 6 2020 the above-mentioned issuance expenses of RMB 55000.00 paid by the

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

raised funds amounting to RMB 1082356809.47 including RMB 180000.00 for the high-grade high-magnetic induction non-

oriented silicon steel project RMB 55364729.08 for the No. 8 casting machine project of the steelmaking plant RMB

628049033.12 for the capacity replacement project of the No. 5 blast furnace of the ironmaking plant RMB 253298156.22 for

the upgrading and transformation project of the special steel electric furnace RMB 115353050.36 for the CCPP power generation

project and RMB 30111840.69 for the environmental protection transformation project of the No. 4-6 converters of the steelmaking

plant. The company has transferred the above amounts from the raised funds account to the general deposit account in 2021.From June 1 2021 to May 31 2022 the company used self-raised funds to pay for the construction of projects funded by the raised

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

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

364155482.35 for the Upgrading and Reconstruction Project of the Special Steel Electric Furnace RMB 186441497.75 for the

CCPP Power Generation Project and RMB 33221738.55 for the Environmental Protection Reconstruction Project of the No. 4 and

No. 6 Converters of the Steelmaking Plant. The company has transferred the above amounts from the raised funds account to the

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

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

blast furnace of the ironmaking plant RMB 19796661.74 for the CCPP power generation project RMB 429392157.76 for the

upgrading and transformation project of the special steel electric furnace RMB 21452968.70 for the environmental protection

transformation project of No. 4-6 converters of the steelmaking plant and RMB 8544658.29 for the No. 8 casting machine project

of the steelmaking plant. As of December 31 2023 the company has transferred the funds from the raised funds account to the

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

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

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

60162375.13 for the upgrading and transformation project of the special steel electric furnace RMB 5454868.60 for the CCPP

power generation project and RMB 6570340.48 for the environmental protection transformation project of the No. 4-6 converters

of the steelmaking plant. As of December 31 2024 the company has transferred the funds from the raised funds account to the

general deposit account.

4. Using idle raised funds to temporarily supplement working capital

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

for the use of raised funds part of the funds raised by the company's non-public offering is temporarily idle. According to the

provisions of the China Securities Regulatory Commission's "Guidelines for the Supervision of Listed Companies No. 2 - Regulatory

Requirements for the Management and Use of Raised Funds by Listed Companies (Revised in 2022)" (CSRC Announcement [2022]

No. 15) and other regulatory documents in line with the principle of maximizing shareholder interests on the premise of ensuring

the capital demand of the raised funds investment projects and the normal progress of the raised funds investment projects in order

to improve the efficiency of the use of raised funds further reduce the company's financial costs reduce financial expenditures and

protect the interests of the majority of investors the company intends to use idle raised funds to temporarily supplement working

capital and the use period shall not exceed 12 months from the date of approval by the board of directors. Supplementing working

capital will save financial expenses for the company.

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

25Bengang Steel Plates Co. Ltd. Annual Report 2024

capital

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

non-oriented silicon steel project RMB220000000.00 for the No. 8 casting machine project of the steel plant RMB800000000.00

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

furnace upgrading and renovation project RMB700000000.00 for the CCPP power generation project and RMB150000000.00

for the environmental protection renovation project of No. 4-6 converters of the steel plant) to temporarily supplement working

capital. The matter was reviewed and approved at the 14th meeting of the 8th Board of Directors and the 12th meeting of the 8th

Board of Supervisors held on July 28 2020. The company's independent directors have expressed their clear consent. The time for

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

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

Use of Idle Raised Funds to Temporarily Supplement Working Capital".As of July 27 2021 the Company has returned all of the idle raised funds of RMB 4180000000.00 used to temporarily supplement

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

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

capital

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

non-oriented silicon steel project RMB 150000000.00 for the No. 8 casting machine project of the steel plant RMB

160000000.00 for the capacity replacement project of No. 5 blast furnace of the iron plant RMB 1000000000.00 for the special

steel electric furnace upgrade and renovation project RMB 590000000.00 for the CCPP power generation project and RMB

120000000.00 for the environmental protection renovation project of No. 4-6 converters of the steel plant) to temporarily

supplement working capital. The matter was reviewed and approved at the 19th meeting of the 8th Board of Directors and the 17th

meeting of the 8th Board of Supervisors held on July 28 2021. The company's independent directors have expressed their clear

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

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

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

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

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

capital

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

non-oriented silicon steel project RMB 165000000.00 for the No. 8 casting machine project of the steel plant RMB

175000000.00 for the capacity replacement project of No. 5 blast furnace of the iron plant RMB 933000000.00 for the special

steel electric furnace upgrade and renovation project RMB 578000000.00 for the CCPP power generation project and RMB

148000000.00 for the environmental protection renovation project of No. 4-6 converters of the steel plant) to temporarily

supplement working capital. The matter was reviewed and approved at the third meeting of the ninth board of directors and the third

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

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

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

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

(4) The funds raised from the public issuance of convertible corporate bonds in July 2023 will temporarily supplement working

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

non-oriented silicon steel project RMB 125000000.00 for the No. 8 casting machine project of the steel plant RMB

145000000.00 for the capacity replacement project of No. 5 blast furnace of the iron plant RMB 188000000.00 for the special

steel electric furnace upgrade and renovation project RMB 393200000.00 for the CCPP power generation project and RMB

95000000.00 for the environmental protection renovation project of No. 4-6 converters of the steel plant) to temporarily supplement

26Bengang Steel Plates Co. Ltd. Annual Report 2024

working capital. The matter was reviewed and approved at the 17th meeting of the 9th Board of Directors and the 12th meeting of

the 9th Board of Supervisors held on July 19 2023. The company's independent directors have expressed their clear consent. The

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

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

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

(5) The funds raised from the public issuance of convertible corporate bonds in July 2024 will temporarily supplement working

capital.The company used idle raised funds of RMB 1860000000.00 (RMB 1015000000.00 for high-grade and high-magnetic induction

non-oriented silicon steel project RMB 100000000.00 for the No. 8 casting machine project of the steel plant RMB

140000000.00 for the capacity replacement project of No. 5 blast furnace of the iron plant RMB120000000.00 for the special

steel electric furnace upgrade and renovation project RMB 397000000.00 for the CCPP power generation project and RMB

88000000.00 for the environmental protection renovation project of No. 4-6 converters of the steel plant) to temporarily supplement

working capital. The matter was reviewed and approved at the 26th meeting of the 9th Board of Directors and the 17th meeting of

the 9th Board of Supervisors held on July 18 2024. The company's independent directors have expressed their clear consent. The

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

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

Use of Idle Raised Funds to Temporarily Supplement Working Capital".As of December 31 2024 the company used idle funds raised from the public issuance of convertible corporate bonds to temporarily

supplement the balance of RMB1860000000.00 in working capital.

5. Cash management using idle raised funds

The company did not use idle raised funds for cash management during the reporting period.

6. Use of surplus raised funds

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

non-raised funds investment projects.

7. Utilization of excess funds

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

8. Purpose and destination of unused raised funds

As of December 31 2024 except for the advance investment and replacement of investment projects with raised funds and thetemporary supplement of working capital with idle raised funds as described in “3. Initial investment and replacement of raisedfunds investment projects” and “4. Using idle raised funds to temporarily supplement working capital” the remaining raised funds

will be temporarily deposited in the special account for raised funds.

9. Other Situations Regarding the Use of Raised Funds

The company did not have any other situations regarding the use of raised funds.

(2) Fundraising commitments

□Applicable □Not applicable

Unit：RMB

Finan Secur Com Proje If the Total Adju Inves Cum Inves Proje Bene Cum Expe Has

cing ities mitte ct Proje Com sted tment ulativ tment ct fits ulativ cted There

27Bengang Steel Plates Co. Ltd. Annual Report 2024

Proje Listin d Natur ct mitte Total Amo e Progr Reac Achi e Bene Been

ct g Inves e Been d Inves unt Inves ess hed eved Bene fits a

Nam Date tment Chan Inves tment for tment by Prede in the fits Achi Majo

e Proje ged tment Amo the Amo the termi Repo Achi eved r

cts (Incl Amo unt Repo unt End ned rting eved Chan

and uding unt (1) rting by of the Usabl Perio by ge in

Exce Partia Perio the Perio e d the Proje

ssive l d End d (3) Statu End ct

Fund Chan of the = s of the Feasi

Alloc ges) Perio (2)/(1 Date Perio bility

ation d (2) ) d

Committed Investment Projects

High-

grade

high

magn

BenG etic

Manu

ang induc

factur

Conv Augu tion Not

ing 1016 1016 141.0 0.14

ertibl st 4 non- No 0.00 0 0 appli No

const 20 20 0 %

e 2020 orient cable

ructio

Bond ed

n

s silico

n

steel

proje

ct

Steel

BenG plant

Manu

ang No. 8

factur Octo

Conv Augu castin - -

ing 3350 3350 3037 2272 67.84 ber

ertibl st 4 g No 5815 1962 No No

const 0 0 .60 6.00 % 31

e 2020 mach 8.08 9.07

ructio 2020

Bond ine

n

s proje

ct

Blast

furna

BenG ce

Manu

ang No. 5

factur Nove

Conv Augu capac - -

ing 9600 9600 745.5 8091 84.28 mber

ertibl st 4 ity No 4473 5689 No No

const 0 0 8 2.52 % 30

e 2020 repla 7.76 .76

ructio 2020

Bond ceme

n

s nt

proje

ct

Speci

al

BenG

steel Manu

ang

electr factur

Conv Augu Not

ic ing 1416 1416 6017 1290 91.13

ertibl st 4 No 0 0 appli No

furna const 00 00 .62 42.92 %

e 2020 cable

ce ructio

Bond

upgra n

s

de

proje

28Bengang Steel Plates Co. Ltd. Annual Report 2024

ct

CCP

BenG

P Manu

ang

powe factur Dece

Conv Augu

r ing 8330 8330 587.9 4342 52.13 mber 2348 5052

ertibl st 4 No Yes No

gener const 0 0 7 2.78 % 31 7.22 5.39

e 2020

ation ructio 2020

Bond

proje n

s

ct

Steel

plant

No.BenG

conv Manu

ang

erter factur Dece

Conv Augu Not

envir ing 1990 1990 803.0 1117 56.17 mber

ertibl st 4 No 0 0 appli No

onme const 0 0 6 8.16 % 31

e 2020 cable

ntal ructio 2020

Bond

transf n

s

ormat

ion

proje

ct

BenG

ang Repa Repa

Conv Augu ymen ymen Not

200020002000100.0

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

0000000%

e 2020 bank bank cable

Bond loans loans

s

-

Subtotal of Committed 6759 6759 1119 4874 2520

7940

Investment Projects -- 20 20 1.83 23.38 -- -- 6.56 -- --

8.62

Use of Over-Raised Funds

Augu Not Not

0.00

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

%

2020 cable cable

-

67596759111948742520

Total -- -- -- 7940 -- --

20201.8323.386.56

8.62

Explanation of

Project

Delays

Expected

Returns and

Reasons The high-grade high-magnetic-induction non-oriented silicon steel project is greatly affected by market factors.(Including The company has adjusted its development strategy and continues to monitor market changes.Reasons for

Selecting "Not

Applicable"

for Expected

Returns)

Description of

Significant None

Changes in

Project

29Bengang Steel Plates Co. Ltd. Annual Report 2024

Feasibility

Amount

Purpose and

Progress of Not applicable

Over-Raised

Funds

Changes in the

Implementatio

n Location of

Not applicable

Fundraising

Investment

Projects

Adjustments

in the

Implementatio

n Method of Not applicable

Fundraising

Investment

Projects

Advance

Investment

and Applicable

Replacement

of Fundraising

Investment

Projects For details please refer to the content stated in Special Report Section III (3) which is not applicable.Use of Idle

raised Funds

for Temporary Applicable

Supplementati

on of Working

Capital For details please refer to the content stated in Special Report Section III (3) which is not applicable.Amount and

Reasons for

Surplus raised

Funds in Not applicable

Project

Implementatio

n

Purpose and

Destination of

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

Funds

Issues or

Other

Situations in

the Use and

Disclosure of There are no issues or other situations.raised Funds

30Bengang Steel Plates Co. Ltd. Annual Report 2024

(3) The situation for raised funds change project

□Applicable □Not applicable

The company did not have any changes in fundraising projects during the reporting period.VIII. Significant Assets and Equity Sold

1. Significant Assets Sold

□Applicable □Not applicable

There were no significant asset sold during the reporting period.

2. Substantial Equity Sold

□Applicable □Not applicable

IX. Analysis of Major Subsidiaries and Affiliates

□Applicable □Not applicable

Details of Major Subsidiaries and Affiliates that Contribute More Than 10% to the Company's Net Profit

Unit：RMB

Company Compan Main Registered Total Net Operating Operating

Name y type business capital assets assets income profit Net Profit

Bengang

Puxiang 23867

Cool Subsidia Processing

Rolling ries and sales of

19200007376809838747243651864430092994

56111.

steel 000 524.34 86.78 3.24 5.71 Steel Sheet 48

Co. Ltd.Acquisition and Disposal of Subsidiaries During the Reporting Period

□Applicable □Not applicable

The Methods of Acquiring and

Company Name Disposing of Subsidiaries Impact on Overall Production Operations and

During the Reporting Period Performance

The acquisition further expands the deep

North Hengda Logistics Co. Ltd. Cash Acquisition processing business strengthens the company's industrial chain and enhances

customer service capabilities.Explanation of Major Holding and Associated Companies

□Applicable □Not applicable

X. Structured Entities Controlled by the Company

□Applicable □Not applicable

XI. Outlook for the Company's Future Development

(I) Industry Development Trends and the Market Competition Landscape Facing the Company

2025 is the final year of the "14th Five-Year Plan" and will be a critical year for the company to solidify its internal foundations and

win new victories in the survival defense battle. Overall the situation we face is complex and ever-changing with unfavorable factors

and favorable conditions interwoven. On the unfavorable side the steel industry is entering a deep adjustment cycle and the trend

31Bengang Steel Plates Co. Ltd. Annual Report 2024

toward steel reduction and industrial upgrading is accelerating. On the favorable side the central economic work conference

emphasized the need to "implement a more proactive and effective macroeconomic policy" and the national policy guidance and

support continue to strengthen. The favorable conditions for China's economic development remain unchanged. At the same time the

company's own ability to respond to crises and overcome difficulties has fundamentally changed. Through years of unremitting effort

and reform and development the foundation for high-quality development has been continuously solidified.(II) General Strategy for Production and Operations

Guided by Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era thoroughly implementing the spirit of the

20th National Congress of the Communist Party and the second and third plenary sessions of the 20th Central Committee the important

directives of General Secretary Xi Jinping on February 26 and his speech at the symposium on promoting the comprehensive

revitalization of Northeast China combined with the company’s actual situation we will establish a strong awareness of breaking the

situation and management and fully deepen lean management and "dual basic" strategies to drive the company’s high-quality

development.(III) Operational Plan and Goals

The production and operational goals for 2025 are: strive to achieve 10.09 million tons of iron 10.55 million tons of steel and 14.24

million tons of finished products; zero safety incidents and zero environmental accidents. To implement these overall work ideas and

production and operation goals we will focus on "three key areas" and emphasize "five comprehensive improvements":

1. Firmly Win the Product Effectiveness Battle: Focus on market orientation and prioritizing efficiency with an emphasis on

adjusting product mix.

2. Firmly Win the Cost Reduction and Efficiency Improvement Battle: Establish a strong awareness that "all expenses are costs

and all revenues are benefits" and actively promote cost reduction across all factors at all times and across all processes.

3. Firmly Win the Efficiency Improvement Battle: Adhere to the principle of efficient and intensive production organization

increase efficient production lines and reduce inefficient ones.

4. Focus on Technological Innovation to Improve Performance: Accelerate breakthroughs in key technologies driving high-

quality development.

5. Focus on Production Line Upgrades: Promote production line structure adjustments accelerate digital transformation and

increase green and low-carbon transformations.

6. Deepen Reforms: Focus on market orientation value creation enhancing management capabilities and performance

evaluations.

7. Focus on Risk Control: Strengthen bottom-line thinking prevent and resolve production safety risks professional risks and

integrity risks.

8. Strengthen Party Building Leadership: Strengthen political construction grassroots development cultural development

talent team construction and unity among employees.(IV) Maintaining Current Business and Funding Arrangements for Ongoing Investment Projects

The company will use its own funds and bank loans to meet the funding needs for production operations and technological

transformation.(V) Potential Risks

Environmental Protection Risks

With the country’s "carbon peak" and "carbon neutrality" targets in place environmental protection departments are increasing

regulation of pollution control in the steel industry. Steel companies face higher environmental protection investments and operational

costs.Response Measures: Build a green and low-carbon production system upgrade energy-efficient and environmentally friendly

equipment apply advanced technologies and reduce carbon emissions. Improve eco-design and lifecycle assessments of products.Strengthen existing environmental equipment and facilities management and improve pollution source monitoring.Market Competition Risks

The progress of domestic economic recovery has been slower than expected and demand growth remains uncertain. The risk of

overcapacity remains due to continuous supply growth. The steel industry is transitioning from incremental growth to stock

optimization and we will face supply-demand imbalances and increased market competition for a long time.Response Measures: Use lean management tools deepen predictive operations strengthen market analysis adjust marketing strategies

and optimize product structure. Improve customer service and satisfaction in the terminal market.Raw Material Prices and Supply Risks

The global monopoly over iron ore supply is unlikely to change in the short term and steel companies have a high dependence on iron

ore imports. Geopolitical conflicts and increasing supply chain risks pose challenges with raw material prices frequently fluctuating.

32Bengang Steel Plates Co. Ltd. Annual Report 2024

Response Measures: Strengthen raw material supply and market demand analysis construct procurement models optimize

procurement structure and ensure strategic cooperation with raw material suppliers. Optimize production material structures to reduce

production costs and minimize the impact of raw material price fluctuations.XII. Researches visits and interviews received in this reporting period

□Applicable □Not applicable

Main Topics Basic

Reception Reception Visitor Discussed and Information

Reception Time Visitor

Location Method Type Materials Index of the

Provided Research

Guosen Securities -

Feng Siyu Company's

Investor

Relations

11-Jan-24 Benxi On-site Institution Xingzheng Global production and Research Fund - Huang operational

Activity Record

Zhiyuan status

on January 11

2024

Pacific Securities

Co. Ltd. - Wang

Qili Pacific January 17

On-site Securities Co. Ltd.

17-Jan-24 Benxi Investigati Institution - Zhang Lei

Company 2024 Investor

on Pacific Securities

production and Relations

Co. Ltd. - Pan Di operation status Activity Record

Pacific Securities Table

Co. Ltd. - Yang

Aohe

Invesco Great Wall

Fund Management

Co. Ltd. - Li

Nanxi Invesco

Great Wall Fund

Management Co.Ltd. - Cai

Wenchen

Shenzhen

Zhengyuan

Investment Co.Ltd. - Xiong

Xiaoming

Shenzhen Qianhai

Haifu Asset

Management Co.Ltd.—Yuan Zihuai

Online Guangdong Dehui

May 7 2024

Company Investor

7-May-24 Benxi Platform Institution Investment

Exchange Management Co.production and Relations

Ltd.—Yang Peng operation status Activity Record

Shanghai Guozan Table

Private Equity

Fund Management

Partnership

(Limited

Partnership)—Guo

Yulei Shanghai

Mingda Industrial

(Group) Co.Ltd.—Xia Bugang

Sino-British Life

Insurance Co.Ltd.—Zheng Lin

Donghai Fund

Management Co.Ltd.—Dai Neng

Xinyuan Fund

33Bengang Steel Plates Co. Ltd. Annual Report 2024

Management Co.Ltd.-Xu Zhicheng

GF Securities-Li

Sha Jinjiang

Chenhan Private

Equity Fund

Management Co.Ltd.-You Wenjian

Shanghai Chaos

Investment (Group)

Co. Ltd.-Li

Xiaonan Xinyuan

Fund Management

Co. Ltd.-Chen

Yuxiang Guorong

Fund Management

Co. Ltd.-Huang

Jingxuan Dongxing

Fund Management

Co. Ltd.-Zhou Hao

GF Securities-Chen

Qiwei China-

Canada Fund

Management Co.Ltd.-Duan Jinxuan

Shanghai Jiashi

Private Equity

Management Co.Ltd.-Li Qidong

CITIC Securities

Co. Ltd.-Li

Qidong CITIC

Securities Co.Ltd.-Liu

Guangzong

Guolian Securities

Co. Ltd.-Zhao Yu

Lujiazui

International Trust

Co. Ltd.-Ye

Kechen Changxin

Fund Management

Co. Ltd. - Ni Wei

Everbright

Pramerica Fund

Management Co.Ltd. - Hua Yeshu

Shanghai Tuling

Asset Management

Co. Ltd. - Zhao

Zifeng Wanjia

Fund Management

Co. Ltd. - Fu Yite

Beijing Chengquan

Capital

Management Co.Ltd. - Wang Haibin

Mingya Fund

Management Co.Ltd. - He Ming

Haining Shibei

Investment

Management

Partnership

(Limited

Partnership) -

Wang Yingying

34Bengang Steel Plates Co. Ltd. Annual Report 2024

Zhongjia Fund

Management Co.Ltd. - Duan

Jinxuan

May 15 2024

Company Investor

15-May-24 Benxi Other Individual Performance Presentation production and Relations operation status Activity Record

Table

May 23 2024

On-site Company Investor

23-May-24 Benxi Investigati Individual Shareholders' Meeting production and Relations on operation status Activity Record

Table

Shanghai

Yongming Asset

Management Co.Ltd. - Xin Weiting

Shanghai Yinye

Investment Co.Ltd. - Wang May 29 2024 Online Company Investor

29-May-24 Benxi Platform Institution Guofeng production and Relations

Exchange IONAnalytics - Mergermarket - operation status Activity Record

Wang Peier Table

Roadshow Light

Years--He Tianjiao

Shenzhen Android

Investment Co.Ltd.--Li Wei

Golden Eagle Fund

Management Co.Ltd. - Sun

Online Qianqian Golden

June 13 2024

13-Jun-24 Benxi Platform Institution Eagle Fund

Company Investor

Management Co. production and Relations Exchange Ltd. - Lv Yanan operation status Activity Record

Golden Eagle Fund Table

Management Co.Ltd. - Zhou Yawen

Everbright

Securities - Dai

Mo Southern Fund

- Liu Yingxing

Huitianfu - Huang

Heqing Xingzheng

Global Fund -

Huang Zhiyuan

Dongzheng Asset -

Xu Wangting June 13 2024 On-site Company Investor

13-Jun-24 Benxi Investigati Institution China Life Asset

on Management --

production and Relations

Yang Chen operation status Activity Record

Franklin Guohai -- Table

Zhang Dengke

China Pacific

Insurance Asset

Management --

Xue Chu China

Pacific Insurance

Asset Management

-- Zhang Zhe

June 14 2024

On-site Pacific Securities - Company Investor

14-Jun-24 Benxi Investigati Institution Wang Qili Pacific Securities - Zhang production and Relations on Lei Chai Jingxi operation status Activity Record Table

35Bengang Steel Plates Co. Ltd. Annual Report 2024

Pacific Securities -

Chai Jingxi

Huachuang July 1 2024 On-site

1-Jul-24 Benxi Investigati Institution Securities - Ma Ye

Company Investor

on Huaxia Securities -

production and Relations

Chen Xiweng operation status Activity Record Table

CITIC Securities -

Liao Zonghui

CITIC Securities - July 24 2024 On-site Company Investor

24-Jul-24 Benxi Investigati Institution Lin Yuchi Individual Investor production and Relations on - Li Chunhou operation status Activity Record

Individual Investor Table

- Li Guanshui

Everbright Metal -

Dai Mo Invesco

Great Wall Fund -

Long Zhen

Invesco Great Wall

Fund - Li

Online Zhenzhuozhuo

August 30

Company 2024 Investor

30-Aug-24 Benxi Platform Institution Invesco Great Wall

Exchange Fund - Qiu Kaiyue

production and Relations

Invesco Great Wall operation status Activity Record

Fund - Liu Erkang Table

Invesco Great Wall

Fund—Cai

Wenchen Invesco

Great Wall Fund—

Chen Yuxin

Huachuang

Securities - Dong

Hanxing China September 2

Online Southern Fund - Company 2024 Investor

2-Sep-24 Benxi Platform Institution Ding Yuecheng production and Relations

Exchange China Southern operation status Activity Record

Fund - Guo Qi Table

China Southern

Fund - Guo Min

On-site Pacific Securities -

September 4

Company 2024 Investor

4-Sep-24 Benxi Investigati Institution Li Haoyang Pacific Securities - production and Relations on Wang Qili operation status Activity Record Table

September 6

Performance Company 2024 Investor 6-Sep-24 Benxi Other Individual Presentation production and Relations operation status Activity Record

Table

September 9

On-site Company 2024 Investor

9-Sep-24 Benxi Investigati Institution BOC Fund—Ding

on Jiuyun

production and Relations

operation status Activity Record

Table

CITIC Securities -

Huang Delong

CITIC Securities -

Online Huang Zhaoteng

September 10

10-Sep-24 Benxi Platform Institution CITIC Securities -

Company 2024 Investor

production and Relations

Exchange Du Bozhao CITIC Securities - Tian operation status Activity Record

Xiangxun CITIC Table

Securities - Zheng

Qinyuan

36Bengang Steel Plates Co. Ltd. Annual Report 2024

September 13

On-site Huafu Securities - Company 2024 Investor 13-Sep-24 Benxi Investigati Institution Hu Senhao production and Relations on operation status Activity Record

Table

Yin Hua Fund -

Feng Fan Yin Hua November 8

Online Fund - Zhang Ziyu

8-Nov-24 Benxi Platform Institution Guotai Junan

Company 2024 Investor

production and Relations

Exchange Securities - Wei Yudi Guotai Junan operation status Activity Record

Securities - Wang Table

Hongyu

On-site Pacific Securities -

December 4

Li Haoyang Company 2024 Investor 4-Dec-24 Benxi Investigati Institution Pacific Securities - production and Relations on Wang Qili operation status Activity Record Table

XIII. The Formulation and Implementation of Market Value Management System and

Valuation Enhancement Plan.Whether the company established a market value management System

□Yes □No

Whether the company disclosed its valuation enhancement plan

□Yes □No

XIV. Implementation of the "Quality Return Dual Improvement" Action Plan

Whether the company has disclosed the announcement of the "Quality Return Dual Improvement" action plan

□Yes □No

37Bengang Steel Plates Co. Ltd. Annual Report 2024

IV. Corporate Governance

I. Basic Situation of Corporate Governance

During the reporting period the Company has been following the laws regulations and documents such as the

Company Law Securities Law Governance Guidelines for Listed Companies Guidelines for the Normative

Operation of Listed Companies on the Shenzhen Stock Exchange and Articles of Association. Based on the actual

situation of the company the Company has been continuously improving the corporate governance structure and

internal control system of the company improves the governance level and promotes the company's standardized

operation. As of the end of the reporting period the actual situation of corporate governance meets the requirements

of the regulatory documents related to the governance of listed companies.

1. Shareholders and Shareholders' General Meeting: The company has formulated the "Rules of Procedures for

General Meetings of Shareholders" in strict accordance with the "Company Law" "Rules for Shareholders' General

Meetings of Listed Companies" and the company's "Articles of Association" to ensure the exercise of the rights of

the company's shareholders and the standard operation of the shareholders' meeting. The company's previous

shareholder meetings have provided two attendance channels on-site voting and online voting to facilitate

shareholders. Involving major issues that affect the interests of small and medium investors the company counts

the votes of small and medium investors individually and discloses them in a timely manner to ensure that all

shareholders enjoy equal status and fully exercise their rights. And by hiring lawyers to witness and ensure the legal

compliance of the convening convening and voting procedures of the meeting the legitimate rights and interests of

the company and shareholders have been safeguarded.

2. Directors and the board of directors: the company's board of directors has clear responsibilities and the company's

directors exercise their powers in strict accordance with the "Articles of Association" "Rules of Procedures of the

Company's Board of Directors" "Company Independent Directors Work System" and other related systems

perform their duties with integrity and diligence and safeguard the legitimate rights and interests of the company

and shareholders. The company's board of directors has four special committees namely audit strategy nomination

remuneration and assessment each of which performs its own responsibilities and functions and can carry out its

work in accordance with the rules of procedure of each special committee. During the reporting period the

convening and holding procedures of the company's board of directors complied with the “Company Law”

“Articles of Association” and “Rules of Procedure of the Board of Directors” and other relevant laws and

regulations.

3. Supervisors and Board of Supervisors: The company's supervisors can earnestly perform their duties

independently and effectively perform supervision and inspection functions. The company's supervisors attend

shareholders' meetings attend board meetings as non-voting delegates regularly inspect the company's legal

operations and financial conditions and issue opinions from the board of supervisors. Supervise the company's

finances the performance of the company's directors and senior management personnel and the capital exchanges

with related parties so as to safeguard the legal rights and interests of the company and shareholders. The number

and structure of the board of supervisors meet the requirements of laws and regulations and its convening and

convening are strictly implemented in accordance with the "Articles of Association" and "Rules of Procedure of the

Board of Supervisors" to ensure that the board of supervisors effectively performs its duties.

4. Controlling shareholders and the company: The company has independent and complete business and

independent management capabilities and is independent of the controlling shareholders and actual controllers in

terms of business personnel assets institutions and finances; The company's board of directors board of

supervisors and other internal institutions operate independently; The company's major decisions are made by the

board of directors or the general meeting of shareholders in accordance with the law. There is no direct or indirect

intervention in the company's decision-making and production and operation activities beyond the general meeting

of shareholders nor does it harm the interests of the company and other shareholders.

38Bengang Steel Plates Co. Ltd. Annual Report 2024

5. Information disclosure and transparency: The company strictly complies with the requirements of the "Shenzhen

Stock Exchange Stock Listing Rules" and the "Information Disclosure Management System" and other requirements

truthful accurate and complete without false records misleading statements or major omissions in performing

information disclosure obligation "China Securities Journal" "Securities Times" "Hong Kong Commercial Daily"

and www.cninfo.com.cn are the designated media for company information disclosure. The company publishes

regular reports and temporary announcements through the above-mentioned information disclosure media to ensure

that all shareholders of the company can obtain information with equal opportunities.

6. Investor relationship management: The company continues to strengthen communication with investors to deepen

investors' understanding and recognition of the company. The company appoints the secretary of the board of

directors as the person in charge of investor relations management and the office of the board of directors is the

organization that undertakes the daily work of investor relations management. The company makes full use of on-

site meetings dedicated telephone calls investor interaction platforms and other methods to communicate with the

company's shareholders listens carefully to the opinions and suggestions of investors on the company's strategic

development and production and operation and has established a good communication mechanism with investors

which enhances investors' understanding and investment confidence in the company.Whether there exists any difference in compliance with corporate governance PRC Company Law and relevant

provisions of CSRC

□ Yes √ No

There exists no difference in compliance with corporate governance PRC Company Law and relevant provisions

of CSRC.II. Explanation on Structural Independence of the Company on Business Personnel Assets Organization

and Finance from the Controlling Shareholder

The Company is separated from the controlling shareholder in aspects of business personnel assets organization

and finance etc. and has its own independent and complete business operation.

(1) In business operation: The Company has its own production and business planning financial affairs check and

calculate labor and personnel raw material supplies and products selling business system independently and

completely.

(2) In personnel: The Company and controlling shareholder are separate in such aspects as labor personnel and

salary management. Such senior executives as company's chairman general manager vice general manager

secretary of Board of Directors etc. get salary from the Company and hold the important position other than a

director in shareholder department.

(3) In Asset: The Company is separated from the controlling shareholder's clearly in asset. The Company has its

own independent purchase production and marketing system.

(4) In organization: The internal operations of the Company are independent; organization structure and working

function are totally independent.

(5) In finance: The company has independent financial management department the accounting and financial

management system where are complete and operated independently and has bank account and pay taxes

independently.III. Competition Situations of the Industry

√ Applicable □Not applicable

Type of

Company Progress and

Question type affiliation Company with name Cause Solution follow-up nature plans

listed

39Bengang Steel Plates Co. Ltd. Annual Report 2024

companies

Ansteel

promises that

within 5 years

from the date

of issuance of

its

commitment

letter and

strive to use a The Company

shorter period disclosed that

of time in the Plan for

accordance Major Asset Replacement

with the and Related

requirements Party

of the relevant Transactions

securities on June 21st

regulatory 2023 and

authorities planned to

and on the carry out asset

premise of replacement

complying with Bengang

Ansteel Group with the Steel Co.. At

Horizontal Controlling Co. Ltd. applicable present the

competition shareholder Ansteel Group Other reorganized laws and

Company is

Co. Ltd. further

Benxi Steel regulations

Group Co. and relevant demonstrating

Ltd. regulatory

rules at that communicatin

time it will g and

comprehensiv negotiating

ely use the transaction

various plan. After the

methods such relevant

as asset matters are

restructuring determined the Company

business will convene

adjustment the Board of

entrusted Directors

management again for

etc. to steadily deliberation.promote the

integration of

relevant

businesses to

solve the

problem of

horizontal

competition.IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period

1. Annual General Meeting

Sessions Type Investor participation ratio Meeting Date Date of disclosure

Index of information

disclosure

Annual General Annual General Announcement of

Meeting of 2023 Meeting 77.10% 23 May 2024 24 May 2024 Resolutions of 2023

40Bengang Steel Plates Co. Ltd. Annual Report 2024

Annual General

Meeting of

Shareholders

Announcement of

First Extraordinary Resolutions of the

General Meeting of Extraordinary First Extraordinary

Shareholders in 2024 General Meeting

78.24% 25 Dec 2024 26 Dec 2024 General Meeting of

Shareholders of

2024

2. Request for Extraordinary General Meeting by Preferred Stockholders Whose Voting Rights Restore

□ Applicable √ Not applicable

V. Status of Directors Supervisors and Senior Executives

1. Basic Information

Shares Shares

increas decrea

Startin Shares Other Shares

Expiry ed sed Reaso

g date held at increas held at

Gende Positi Office date of during during n for

Name Age of the e / the

r on Status office the the change

office year- decrea year-

term reporti reporti s

term begin se end

ng ng

period period

Chair

man

18

Huang Gener In 26 Apr

Male 54 May Zuowei al office 2025

2023

manag

er

Quan Direct In 19 Oct 26 Apr

Male 47

Xihong or office 2023 2025

Wang Direct In 16 Mar 26 Apr

Donghui Male 55 or office 2023 2025

Tang Direct In 22 Jul 26 Apr

Male 52

Yaowu or office 2022 2025

Liu

Direct In 25 Dec 26 Apr

Zhengan Male 54

or office 2024 2025

g

Indepe

16

Zhang Femal ndent In 26 Apr

Suxun e 69

May

Direct office 2025

2019

or

Indepe

20

Yuan ndent In 26 Apr

Male 43 May

Zhizhu Direct office 2025

2020

or

Indepe

27

Zhong Femal ndent In 26 Apr

May

Tianli e 68 Direct office 2025

2021

or

Chair

Lu

Male 44 man

In 18 Jul 26 Apr

Xuezhu of the

office 2023 2025

Super

41Bengang Steel Plates Co. Ltd. Annual Report 2024

visory

Board

Lu Super In 7 Dec 26 Apr

Weijun Male 49 visor office 2021 2025

Emplo

Zhang In 19 Oct 26 Apr

Male 55 yee

Weian Super office 2023 2025

visor

Emplo

Guo yee In 19 Oct 26 Apr Male 46 Super Peng office 2023 2025

visor

Emplo

Mao Femal yee In 23 Mar 26 Apr 45

Xiuru e Super office 2024 2025

visor

Deput

y

Liu

genera In 17 Aug 26 Apr

Zhangm Male 50

l office 2022 2025

an

manag

er

Deput

y

Guo genera In 17 Aug 26 Apr

Yuwei Male 55 l office 2022 2025

manag

er

Chief

Accou

ntant

Secret

Zheng ary of In 28 Feb 26 Apr

Zhengli Male 48 the office 2023 2025

Board

of

Direct

ors

Leave 16 Mar 7 Aug

Li Yan Male 42 Chairman office 2023 2024

Direct Leave 18 Dec 25 Oct Jin Ge Male 56 or office 2023 2024

Emplo

Jiang yee Leave 19 Oct 23 Mar Male 46

Zhenyu superv office 2023 2024

isor

Deput

y

Liu

Male 53 genera

Leave 18 Jul 2 Apr

Yansong l office 2023 2024

manag

er

Total -- -- -- -- -- -- 0 0 0 0 0 --

During the reporting period is there any resignation of directors and supervisors and dismissal of senior

management personnel during the reporting period

√Yes □No

1. Mr. Li Yan former Chairman of the Company resigned during the reporting period due to job changes during

his term of office;

2. Mr. Jin Ge former director resigned during the reporting period due to job changes during his term of office;

3. Mr. Jiang Zhenyu former employee supervisor resigned during the reporting period due to job changes during

42Bengang Steel Plates Co. Ltd. Annual Report 2024

his term of office;

4. Mr. Liu Yansong former deputy general manager resigned during the reporting period due to job changes

during his term of office.Changes in directors supervisors and senior management of the Company

√Applicable □Not applicable

Name Position Type of change Date Reason

Li Yan Chairman Leave office 7 Aug 2024 Voluntary resignation

Jin Ge Director Leave office 25 Aug 2024 Voluntary resignation

Jiang Zhenyu Employee supervisor Leave office 23 Mar 2024 Voluntary resignation

Deputy general

Liu Yansong Dismissal 2 Apr 2024 Job changes

manager

Chairman Elected 7 Aug 2024 Elected

Huang Zuowei

General manager Appointment 25 Apr 2024 Appointment

Liu Zhengang Director Elected 25 Dec 2024 Elected

Mao Xiuru Employee supervisor Elected 23 Mar 2024 Elected

2. Posts holding

Work experience professional background and currently mainly responsibilities of Directors Supervisors and Senior Executives in

current office

Huang Zuowei male 54 years old university degree master of engineering senior engineer currently serving as Party Secretary

Chairman and General Manager of Bengang Bancai; Chairman of Bengang Posco. Formerly served as Director of Energy and

Environmental Protection Department of Bengang Bancai; General Manager of Planning and Technology Department of Bengang

Group; Director of Bengang Beiying Company; Director of Bengang Mining Company; Deputy Party Secretary Director and Deputy

General Manager of Bengang Bancai.Quan Xihong male 47 years old university degree bachelor of engineering senior engineer currently serving as deputy secretary of

the Party Committee employee director secretary of the Discipline Inspection Commission chairman of the labor union general legal

counsel chief compliance officer and secretary of the Party Committee of Bengang Bancai. He was formerly deputy director of the

Comprehensive Supervision Department of the Discipline Inspection Commission (Supervision Department) of Bengang Group;

director of the Discipline Inspection and Supervision Cadre Supervision and Management Office of the Discipline Inspection

Commission (Supervision Department) of Bengang Group; director of the Discipline Inspection and Supervision Office of the

Discipline Inspection Commission (Supervision Department) of Bengang Group; deputy secretary of the Discipline Inspection

Commission manager of the Audit Department and director of the Party and Government Supervision Office of Bengang Beiying

Company.Wang Donghui male 55 years old university degree bachelor of engineering bachelor of economics senior accountant currently

serving as director of Bengang Bancai; general manager of the Capital Finance Department of Bengang Group. Former chief accountant

and director of the Finance Department and Operation Improvement Department of Bengang Beiying Company; deputy director of the

Finance Department of Bengang Group and chief accountant of Bengang Beiying Company; director of the Finance Department of

Bengang Group; chief accountant and secretary of the board of directors of Bengang Bancai; chief accountant of Bengang Mining

Company.Tang Yaowu male 52 years old university degree bachelor of engineering engineer. He is currently the director of Bengang Bancai;

full-time director and supervisor of Bengang Group Office; director of Machinery Manufacturing Company; director of Thermal Power

Company; supervisor of Benxin Company. He was formerly the deputy director of the rolling mill of Bengang Beiying Company;

executive deputy director of the rolling mill of Bengang Beiying Company; director of the rolling mill of Bengang Beiying Company;

assistant to the general manager of Bengang Beiying Company and director of the production department; chief engineer of Bengang

Beiying Company; chief engineer and director of the rolling mill of Bengang Beiying Company; deputy general manager and chief

engineer of Bengang Beiying Company; deputy director of the Energy and Environmental Protection Department of Bengang Bancai.Liu Zhengang male 54 years old university degree senior political worker. He is currently the director of Bengang Bancai; full-time

director and supervisor of Bengang Group Office; director of Bengang Company; director of Industrial Company; supervisor of

Construction Company. He was formerly the deputy manager and deputy secretary of the Party Committee of Bengang New Industrial

Development Company; deputy director of the Administrative Management Center of Benxi Iron and Steel Company; director of asset

management of the Planning and Technology Department of Bengang Group; and director of New Business Company.Zhang Suxun female 69 years old bachelor degree professor. Currently serving as independent director of Bengang Bancai. Former

teacher of Liaoning University Business School.Yuan Zhizhu male 43 years old PhD associate professor of accounting at Northeastern University master's tutor non-practicing

member of the Chinese Institute of Certified Public Accountants. He is currently an independent director of Bengang Bancai; director

of the Accounting Department of the School of Business Administration of Northeastern University and a director of the Liaoning

Provincial Accounting and Abacus Mental Arithmetic Society and the Liaoning Provincial Auditing Society. He was a lecturer at the

School of Business Administration of Northeastern University.

43Bengang Steel Plates Co. Ltd. Annual Report 2024

Zhong Tianli female 68 years old professor (doctoral supervisor) at Northeastern University. Currently an independent director of

Bengang Bancai; professor of the Accounting Department of the School of Business Administration of Northeastern University. Former

vice dean of the School of Business Administration of Northeastern University; dean of the School of Basic Sciences of Northeastern

University and director of the Institute of Financial Management of the School of Business Administration.Brief Introduction of Supervisory Board Members:

Lu Xuezhu male 44 years old university degree bachelor of engineering senior economist senior accountant currently serving as

Chairman of the Supervisory Committee of Bengang Bancai; General Manager of the Audit Department of Bengang Group; Director

of Bengang Mining Company. Formerly served as Deputy Director of the Economic Responsibility Audit Department of Angang Group

Audit Department; Deputy Director of the Operation and Management Audit Department of Angang Group Audit Department; Director

of the Operation and Management Audit Department of Angang Group Audit Department; Supervisor of Bengang Bancai.Lu Weijun male 49 years old university degree senior accountant. Currently serving as the supervisor of Bengang Bancai; director

of operation and management audit of the Audit Department of Bengang Group. Formerly the chief of the cost section of the Finance

Department of the Construction Company; chief business engineer of the Audit Department of Bengang Bancai; chief business engineer

of the Audit Department of Bengang Group; deputy manager of the Finance Department of Bengang Bancai.Zhang Weian male 55 years old university degree senior accountant currently serving as employee supervisor and manager of the

audit department of Bengang Bancai; supervisor of Bengang Posco Company; supervisor of Dalian Benruitong Company; supervisor

of Shenyang Xiangyu New Materials Technology Co. Ltd. He was formerly deputy director of the Financial Department of Bengang

Beiying Company; deputy director of the Financial Department of Bengang Group.Guo Peng male 46 years old university degree assistant engineer senior technician currently serving as employee supervisor of

Bengang Bancai and special grade technician of rolling mill in 2300 production operation area of hot rolling mill. He was formerly

production shift supervisor of the third hot rolling production operation area of hot rolling mill of Bengang Bancai; chief operator and

first grade technician of rolling mill in the third hot rolling production operation area of hot rolling mill of Bengang Bancai.Mao Xiuru female 45 university degree Bachelor of Law corporate legal advisor currently serving as employee supervisor of

Bengang Bancai deputy director (deputy manager) of the Party and Mass Work Department (Organization Department of the Party

Committee Human Resources Department Propaganda Department of the Party Committee United Front Work Department Labor

Union Youth League Committee Party Committee of the Office); deputy chairman of the Labor Union of Bengang Bancai; deputy

secretary of the Party Committee of the Office of Bengang Bancai secretary of the Discipline Inspection Commission of the Office

and chairman of the Labor Union of the Office. She was previously the senior manager of legal protection of the Legal and Compliance

Department of Bengang Group; deputy manager (deputy director) of the General Management Department (Party Committee Office

Board Office Confidentiality Office) of Bengang Bancai.Brief introduction of Non-Director Senior Management Members:

Liu Zhangman male 50 years old university degree senior engineer. Currently serving as deputy general manager of Bengang Bancai.Former deputy director of the Second Steelmaking Plant of Bengang Beiying Company; deputy director of the Steelmaking Plant of

Bengang Beiying Company; assistant to the executive deputy general manager of Bengang Beiying Company and chairman of the

Science and Technology Association director of the Technology Center; chief engineer and chairman of the Science and Technology

Association director of the New Product Department manager of the Bar and Wire Development Project Department and director of

the Bar and Wire Research Institute of Bengang Beiying Company; deputy general manager and director of Bengang Beiying Company;

deputy director of the Manufacturing Department of Bengang Bancai; deputy general manager of the Operation Management

Department of Bengang Group; director of Bengang Bancai.Guo Yuwei male 55 years old university degree master of engineering senior engineer. He is currently the deputy general manager

of Bengang Bancai. He used to be the assistant to the director of the ironmaking plant of Bengang Bancai; deputy director of the

ironmaking plant of Bengang Bancai; secretary of the Party Committee and chairman of the labor union of the ironmaking plant of

Bengang Bancai; deputy director of the ironmaking plant of Bengang Bancai; member of the preparatory group of the Party Committee

of Bengang Beiying Company and deputy general manager; director of Bengang Construction Company; secretary of the Party

Committee and deputy director of the ironmaking plant of Bengang Bancai.Zheng Zhengli male 48 years old graduate education MBA senior accountant currently serving as Chief Accountant and Secretary

of the Board of Directors of Bengang Bancai; Director of Bengang Posco Company. He was formerly Deputy Director of the Financial

Department of Bengang Bancai; Accounting and Taxation Director of the Financial Department of Bengang Bancai; Party Committee

Member and Assistant to the General Manager of Bengang Beiying Company.Posts holding in Shareholders

√ Applicable □ Not applicable

Does he /she

receive

Names of the Names of the Titles engaged in Starting date of Expiry date of remuneration or

person in office shareholders the shareholders office term office term allowance from the

shareholder’compa

ny

General Manager

Bengang Group

Wang Donghui of Capital Finance 9 Feb 2023 Yes

Co. Ltd.Department

Bengang Group

Tang Yaowu Full-time director 24 Mar 2022 Yes

Co. Ltd.Liu Zhengang Bengang Group Full-time director 1 Jul 2024 Yes

44Bengang Steel Plates Co. Ltd. Annual Report 2024

Does he /she

receive

Names of the Names of the Titles engaged in Starting date of Expiry date of remuneration or

person in office shareholders the shareholders office term office term allowance from the

shareholder’compa

ny

Co. Ltd.General manager

Bengang Group

Lu Xuezhu of audit 12 Apr 2023 Yes

Co. Ltd.department

Director of

Operation and

Bengang Group

Lu Weijun Management Audit Co. Ltd. 6 Jun 2023 Yes

of Audit

Department

Description of the

position in the None

shareholder

Posts holding in other companies

√Applicable □Not applicable

Does he /she

Names of the Names of the other Titles engaged in Starting date of

receive

Expiry date of

person in office companies other companies office term

remuneration or

office term

allowance from

other company

Bengang Puxiang

Huang Zuowei Cold-rolled Sheet Chairman 25 Jul 2024 No

Co. Ltd.Beitai Steel

Liu Zhengang Director 10 Jul 2023 No

(Group) Co. Ltd.Benxi Iron and

Steel (Group)

Liu Zhengang Industrial Director 21 Apr 2022 No

Development Co.Ltd.Benxi Iron and

Steel (Group)

Liu Zhengang Supervisor 1 Jul 2024 No

Construction Co.Ltd.Dalian Benruitong

Automotive

Zhang Weian Materials Supervisor 12 Aug 2023 No

Technology Co.Ltd.Bengang Puxiang

Zhang Weian Cold-rolled Sheet Supervisor 25 Jul 2023 No

Co. Ltd.Shenyang Xiangyu

New Materials

Zhang Weian Supervisor 21 Sep 2023 No

Technology Co.Ltd.Zhong Tianli School of Business Administration Professor 1 Oct 1982 No

45Bengang Steel Plates Co. Ltd. Annual Report 2024

Northeastern

University

School of Business

Administration Dean of

Yuan Zhizhu Department of Northeastern 13 Jul 2009 Yes Accounting

University

Yuan Zhizhu Shenyang Machine Independent Tool Co. Ltd. director 28 May 2021 Yes

Description of the

position in other None

companies

Punishment by the securities regulatory authorities in last three years

□ Applicable √ Not applicable

3. Remuneration to Directors Supervisors and Senior Executives

Decision-making procedures basis of recognition and actual payment of the remuneration to Directors Supervisors and Senior

Executives

Decision making procedures

1. The Remuneration and Assessment Committee will produce a plan or proposal which will be implemented upon approval of the

Board or the Shareholders’ Meeting;

2. According to performance assessment criteria and procedures the Remuneration and Assessment Committee undertakes assessment

on the Directors and Senior Executives;

3. Remuneration amounts and ways of rewards will be proposed according to the assessment and remuneration policies for Directors

Supervisors and Senior Executives and adopted by voting;

4. To be implemented upon approval of the Board.

Basis of recognition

Remuneration scheme for a particular position is recognized basing on the range of responsibilities duties. Remunerations are

distributed based on the assessment results and remuneration policies.Actual payment of the remuneration

Remuneration is paid on monthly basis according to the remuneration allocation policies.Remuneration of Directors Supervisors and Senior Executives during the reporting period

Unit: RMB 10 thousand

Whether

Total pre-tax

receive

compensation

Name Gender Age Position Office status remuneration in received from

the Company's

the company

related parties

Chairman

Huang Zuowei Male 54 General In office 58.8 No

manager

Employee

Quan Xihong Male 47 director In office 44.18 No

Wang Donghui Male 55 Director In office 0 Yes

Tang Yaowu Male 52 Director In office 0 Yes

Liu Zhengang Male 54 Director In office 0 Yes

Independent

Zhang Suxun Female 69 In office 5 No

director

Independent

Yuan Zhizhu Male 43 director In office 5 No

Independent

Zhong Tianli Female 68 In office 5 No

director

Chairman of

Lu Xuezhu Male 44 the Supervisory In office 0 Yes

Committee

46Bengang Steel Plates Co. Ltd. Annual Report 2024

Lu Weijun Male 49 Supervisor In office 0 Yes

Zhang Weian Male 55 Supervisor In office 32.71 No

Guo Peng Male 46 Supervisor In office 27.29 No

Mao Xiuru Female 45 Supervisor In office 27.03 No

Deputy general

Liu Zhangman Male 50 manager In office 57.97 No

Deputy general

Guo Yuwei Male 55 In office 55.45 No

manager

Chief

Accountant

Zheng Zhengli Male 48 Secretary of the In office 50.54 No

Board of

Directors

Li Yan Male 42 Chairman Leave office 22.31 No

Jin Ge Male 56 Director Leave office 0 Yes

Jiang Zhenyu Male 46 Supervisor Leave office 3.85 No

Deputy general

Liu Yansong Male 53 Leave office 7.43 No

manager

Total -- -- -- -- 402.56 --

Other information:

□ Applicable √ Not applicable

VI. Duty fulfillment of directors during the reporting period

1. The situation of the Board of Directors during the reporting period

Sessions Meeting Date Date of disclosure Index of information disclosure

Resolution of the 24th

24th Ninth session 9 Apr 2024 meeting of the 9th Board of

Directors

Announcement of Resolutions

25th Ninth session 25 Apr 2024 29 Apr 2024 of the 25th Meeting of the

Ninth Board of Directors

Announcement of Resolutions

26th Ninth session 18 Jul 2024 19 Jul 2024 of the 26th Meeting of the

Ninth Board of Directors

Announcement of Resolutions

27th Ninth session 7 Aug 2024 8 Aug 2024 of the 27th Meeting of the

Ninth Board of Directors

Announcement of Resolutions

28th Ninth session 27 Aug 2024 29 Aug 2024 of the 28th Meeting of the

Ninth Board of Directors

Announcement of Resolutions

29th Ninth session 25 Oct 2024 29 Oct 2024 of the 29th Meeting of the

Ninth Board of Directors

Announcement of Resolutions

30th Ninth session 5 Dec 2024 6 Dec 2024 of the 30th Meeting of the

Ninth Board of Directors

31st Ninth session 23 Dec 2024 24 Dec 2024 Announcement of Resolutions

of the 31rt Meeting of the

47Bengang Steel Plates Co. Ltd. Annual Report 2024

Ninth Board of Directors

2. The situation of directors attending the BOD and shareholders meeting

Attendance of Directors at Board of Directors and General Meetings of Shareholders

Number of

Board Failure to

meetings Number of Number of personally

Director necessary to Number of meetings attendances Number of attend board

Number of

general

name be attended spot attended by by absences meetings

during the attendances Communicati representativ successively

meetings to

reporting on e twice

be attended

period (Yes/No)

Huang

8 4 4 0 0 No 2

Zuowei

Quan Xihong 8 4 4 0 0 No 2

Wang

8 4 4 0 0 No 2

Donghui

Zhang Suxun 8 4 4 0 0 No 2

Zhong Tianli 8 4 4 0 0 No 2

Yuan Zhizhu 8 4 4 0 0 No 2

Tang Yaowu 8 4 4 0 0 No 2

Jin Ge 6 3 3 0 0 No 1

Li Yan 3 1 2 0 0 No 1

Explanation of two consecutive absences from attending the Board of Directors in person

None

3. Objections of directors on relevant issues

Objections of directors on some relevant issues

□ Yes √ No

Directors proposed no objection against the relevant matters during the reporting period.

4. Other Notes to Duty Fulfillment of Directors

Whether any director’s advice to the Company was accepted

√ Yes □ No

Illustration of acceptance of or failure to accept director’s advice to the Company

Directors have not made recommendations during the reporting period.VII. Duty Fulfillment of the Special Committees under the Board during the reporting period

Important Specific

Number of comments Other circumstance

Committees Membership meetings Meeting date Meeting content and performance s of the held suggestions of duties objection (if

raised any)

1.2023

Board of

Directors

Report; 2.Li Yan Wang Proposal on

Strategy Donghui 1 17 Mar 2024 2024

Not

Committee Agree None

Zhong Tianli Investment

applicable

Framework

Plan; 3. 2024

Bengang

Bancai

Deepening

48Bengang Steel Plates Co. Ltd. Annual Report 2024

Reform Plan

Proposal on

the

appointment

Not

Yuan Zhizhu 17 Mar 2024 of the Agree None applicable

Zhang company's

Nominating

Committee Suxun 2 general

Huang manager

Zuowei Proposal on

nominating Not

15 Oct 2024 Agree None

candidates applicable

for directors

1.2023

Annual

Report and

Summary; 2.

2023

Financial

Statements;

3.2023

Profit

Distribution

Plan; 4.Proposal on

Renewal of

Accounting

Firm; 5. Not

17 Mar 2024 Proposal on Agree applicable None

Provision for

Asset

Impairment

in the 2023

Zhang

Audit and Internal

SuxunYuan

Risk Control

Zhizhu 6

Management Evaluation

Wang

Committee Report; 6.Donghui Special

Report on

Deposit and

Use of

Raised Funds

in 2023

1. 2024 first

quarter

report; 2.

2023 annual

compliance

work report;

14 Apr 2024 3. 2023

Not

Agree applicable None internal

control

system work

report; 4.

2024 major

risk

assessment

49Bengang Steel Plates Co. Ltd. Annual Report 2024

report

Proposal on

using idle

raised funds

Not

12 Jul 2024 to Agree None

applicable

supplement

working

capital

1. 2024 semi-

annual report

of Bengang

Plates Co.Ltd.; 2.Proposal on

the risk

assessment

report of

Angang

Finance Co.Ltd. in the

first half of

2024; 3. Not

16 Aug 2024 Agree None

Special applicable

report on the

deposit and

use of raised

funds of

Bengang

Plates Co.Ltd. in the

first half of

2024;4.

Proposal on

changes in

accounting

policies

2024 Third

Not

15 Oct 2024 Quarter Agree applicable None

Report

2024 Internal

Control Not

13 Dec 2024 Agree None

Evaluation applicable

Work Plan

Opinions on

the payment

of annual

remuneration

Not

Remunerati 14 Apr 2024 for senior Agree

Zhong Tianli applicable

None

on and management

Appraisal Yuan Zhizhu 2 of the

Committee Tang Yaowu company in

2023

Proposal on Not

11 Jul 2024 the Agree applicable None

performance

50Bengang Steel Plates Co. Ltd. Annual Report 2024

evaluation

indicators for

the

company's

management

in 2024 and

the term of

office from

2024 to 2026

VIII. Duty Fulfillment of the Supervisory Committee

Whether the supervisory board made any objection against the supervision issue during the reporting period

□ Yes √ No

The Supervisory Board made no objection against the supervision issue during the reporting period.IX. Staff Condition

1. Staff number Professional Structure and Education Level

Number of in-service staff in parent company 12495

Number of in-service staff in main subsidiaries 637

Total Number of in-service staff 13132

Total Number of staff receiving remuneration in the current period 13132

Number of retired staff whose expense was borne by parent

company and major subsidiary companies 23727

Professional Composition

Type of Professional Composition Headcount

Production Staff 10894

Sales Staff 164

Technician 1228

Financial Staff 89

Administrative Staff 757

Total 13132

Educational Degree

Type of Educational Degree Headcount

PhD and above 12

Postgraduate 252

Undergraduate 4052

Junior College 5054

Technical secondary school 277

High School and Technical School 2317

Middle School and others 1168

Total 13132

2. Remuneration Policies

In 2024 the company will establish a sound performance management system. Based on the determined annual production and

operation guidelines policies and management goals the company will assess the operating indicators and work task completion of

each functional department and factory set key performance assessment indicators and implement monthly assessments. Pay according

to position ability and performance. Set salary according to position and salary changes with position changes. Guide employees to

improve their abilities establish a salary distribution mechanism in which job placement depends on competition and income depends

on contribution highlight the assessment of key performance indicators and truly realize that income can be increased or decreased.Continue to promote the lump sum of total salary guide each unit to rationally allocate human resources optimize the distribution

mechanism and improve labor productivity.

51Bengang Steel Plates Co. Ltd. Annual Report 2024

3. Training Plan

In 2024 the company will implement the "talent-driven enterprise" strategy focus on building an internationally competitive

production base for automotive steel and high-quality steel bars and wires optimize the education and training system improve the

training evaluation mechanism and improve the quality and effectiveness of training. It will highlight the political systematic precise

and effective nature of training continuously improve the political leadership general and professional abilities of employees and

strive to create distinctive high-quality training projects effectively release the effectiveness of training further improve the

comprehensive quality of the workforce and lay a solid foundation for the company's high-quality development. The company

completed 17 training projects throughout the year trained 21 thousand people and the training qualification rate reached 96% and

the annual training plan execution rate reached 100%. The training target plan was fully achieved.

4. Outsourcing

□ Applicable √ Not applicable

X. Profit Distribution or Capital Reserve Conversion

Formulation implementation and adjustment of profit distribution policy of common shares especially cash dividend

policy during the reporting period

√ Applicable □ Not applicable

Profit distribution plan for 2024: Audited and confirmed by BDO China Shu Lun Pan Certified Public Accountants LLP. in

accordance with the Chinese Accounting Standards for Business Enterprises the net profit attributable to the parent company in 2024

is RMB -5037271398.28 yuan. As of December 31 2024 the ending balance of company's undistributed profit is RMB -

7497011632.90 yuan. The profit distribution plan for 2024 is: no cash dividends no bonus shares and no capital reserve conversion

to increase share capital.Special description of cash dividend policy

Whether it meets the requirements of the company's articles of

association or the resolutions of the shareholders meeting: Yes

Whether the dividend standard and ratio are clear: Yes

Whether the relevant decision-making procedures and

mechanisms are complete: Yes

Whether independent directors have performed their duties due

diligence and played their due role: Yes

Due to the company's losses in 2024 the specific conditions for

cash dividends in the Articles of Association are not met. Taking

into account the company's development and capital needs in

If a company does not distribute cash dividends it should order to better protect the company's sustainable development and

disclose the specific reasons and the measures it intends to take the long-term interests of all shareholders it is planned that no

to enhance the level of investor returns: cash dividends will be distributed no bonus shares will be issued and no capital increase will be made from reserve in 2024. The

company will continue to deepen reforms and innovations strive

to improve profitability and reward investors with better

performance.Whether small and medium shareholders have sufficient

opportunities to express their opinions and demands and whether Yes

their legitimate rights and interests are fully protected:

If the cash dividend policy is adjusted or changed whether the

conditions and procedures are compliant and transparent: Yes

Both the Company’s profit and the parent company’s retained earnings are positive however no proposal of cash dividend distribution

was proposed during the reporting period

□ Applicable √ Not applicable

Profit distribution and capital reserve conversion into share capital during the reporting period

□ Applicable √ Not applicable

The company plans not to distribute cash dividends issue bonus shares or convert capital reserves into share capital during the year.

52Bengang Steel Plates Co. Ltd. Annual Report 2024

XI. Implementation of the company's equity incentive plan employee stock ownership plan or other

employee incentive measures

□ Applicable √ Not applicable

The company had no equity incentive plan employee stock ownership plan or other employee incentive measures and their

implementation during the reporting period.XII. Construction and implementation of internal control system during the reporting period

1. Construction and implementation of internal control system

During the reporting period the company strictly abided by the provisions of the Basic Norms for Enterprise Internal Control and its

supporting guidelines and other internal control regulatory requirements and combined with industry characteristics business

operations and the company's internal control system and evaluation methods continuously improved and refined the internal control

management system promoted the improvement of the company's decision-making efficiency provided guarantees for the legality and

compliance of the company's business management and asset security and effectively promoted the steady implementation of the

company's strategy.The company has established a sound internal control system and has revised and improved it in due course in light of actual operations

giving full play to its system guarantee role. During the reporting period the company formulated 33 systems including the "Bengang

Steel Plates Co. Ltd. Work Secret Protection Management Measures" and the " Bengang Steel Plates Co. Ltd. Development Strategy

and Planning Management Measures" and revised 263 systems including the " Bengang Steel Plates Co. Ltd. Investor Relations

Management System" and the " Bengang Steel Plates Co. Ltd. Related Transaction Management Measures". As of the end of the

reporting period the company had a total of 311 effective systems.

2. Material internal control defects found during the reporting period

□ Yes √ No

XIII. Management and control of subsidiaries during the reporting period

Problems

Company name Integration Integration encountered Solutions Solutions Follow-up plan progress during implemented progress solutions plan

integration

Hengda’s

assets

personnel

finance

North Hengda organization

Logistics Co. and business Completed Not applicable Not applicable Not applicable Not applicable

Ltd. are integrated

into the

company's

management

system

XIV. Internal control self-evaluation report or internal control audit report

1. Self-Evaluation Report on Internal Control

Disclosing date of internal control auditing

report full text April 4 2025

Index of the internal control auditing report

full text http://www.cninfo.com.cn

Proportion of total assets of subsidiaries

belong to the scope of self-evaluation

report in the total assets of the Company’s 100.00%

consolidated financial statements

Proportion of operation income of

subsidiaries belong to the scope of self-

evaluation report in the operation income 100.00%

of the Company’s consolidated financial

statements

53Bengang Steel Plates Co. Ltd. Annual Report 2024

Standards of Defects Evaluation

Category Financial Report Non-financial Report

1. Criteria for

identifying internal

control deficiencies in

daily operations of a

company: 1) Material

deficiencies: have a

significant impact on the

normal operations of the

company: affect most of

the company's main

business types/main

functional areas; have a

significant impact on the

company's overall

operations and it is

difficult to recover in the

long term. 2) Significant

deficiencies: have a

significant impact on the

normal operations of the

company: affect some of

the company's main

business types/main

1. Material deficiencies: Fraud by directors functional areas; have a

supervisors and senior management; significant impact on the

correction of published financial statements company's overall

by the enterprise; major misstatements in operations and it will

financial statements which were not take a long time to

discovered during the operation of internal recover at a high cost. 3)

control; ineffective supervision of internal General deficiencies:

control by the enterprise audit committee and have a moderate or less

Qualitative criteria internal audit agency. 2. Significant

impact on the normal

deficiencies: Internal control defects in operations of the

accounting policies accounting and financial company: affect a

reporting that are less serious and have lower certain main business

economic consequences than major defects type/main functional

but may still cause the company to deviate area or general business

from the control objectives. 3. General type/general functional

deficiencies: Other internal control defects in area of the company;

financial reporting other than major defects have a moderate or less

and significant defects. impact on the company's overall operations and it

will take a certain

amount of time to

recover at a certain cost.

2. Criteria for

identifying internal

control deficiencies in

the realization of the

company's business

objectives: 1) Material

deficiencies: have a

significant impact on the

company's business

objectives: have a

significant impact on

any of the company's

budget indicators; affect

most of the company's

important management

objectives; have a

significant impact on

working capital (0.8

times ≤ current asset

turnover rate ≤ 1 time);

54Bengang Steel Plates Co. Ltd. Annual Report 2024

have a significant

impact on any of the

company's budget

indicators (profit ≥

RMB 800 million yuan).

(2) Significant

deficiencies: have a

significant impact on the

company's business

objectives: have a

significant impact on

any of the company's

budget indicators; affect

some of the company's

important management

objectives; have a

significant impact on

working capital (0.5

times ≤ current asset

turnover rate ≤ 0.8

times); have a

significant impact on

any of the company's

budget indicators (RMB

400 million yuan ≤

profit ≤ RMB 800

million yuan). 3)

General deficiencies:

medium or less impact

on the company's

operating objectives;

medium or less impact

on any category of the

company's budget

indicators; impact on

one of the company's

important management

objectives or several

general management

objectives; medium or

less impact on working

capital (current asset

turnover rate < 0.5

times); medium or less

impact on any category

of the company's budget

indicators (profit <

RMB 400 million yuan).

3. Criteria for

identifying deficiencies

in the company's

internal safety control:

1) Material deficiencies:

affecting the

health/safety of a certain

number of

employees/the public

and particularly serious

accidents. 2) Significant

deficiencies: affecting

the health/safety of

some employees/the

public and major

accidents. 3) General

deficiencies: affecting

the health/safety of a

small number of

55Bengang Steel Plates Co. Ltd. Annual Report 2024

employees/the public

and major accidents.

4. Criteria for

identifying deficiencies

in the company's

internal environmental

protection control: 1)

Material deficiencies:

serious environmental

damage major

environmental incidents

(national level II) or

above. 2) Significant

deficiencies: major

environmental damage

major environmental

incidents (national level

III). 3) General

deficiencies:

environmental impacts

of moderate or less and

general environmental

incidents (national level

IV).

1. Material deficiencies：1）misstatement≥5%of the total profits; 2）misstatement≥3% of thetotal assets; 3）misstatement≥1% of the totaloperating income; 4）misstatement≥1% of the

total amount of the owner’s equity.

2. Significant deficiencies: 1) 3% of the total

profits ≤misstatement ＜ 5% of the totalprofits; 2 ） 0.5% of the total assets≤misstatement＜3% of the total assets；3）

0.5% of the total operating income

Quantitative criteria ≤misstatement＜ 1% of the total operating Noneincome； 4）0.5% of the total amount of the

owner’s equity ≤misstatement＜1% of the

total amount of the owner’s equity. 3. Generaldeficiencies：1）misstatement＜3% of thetotal profits；2）misstatement＜0.5% of thetotal assets；3）misstatement＜0.5% of thetotal operating income；4）misstatement＜

0.5% of the total amount of the owner’sequity。

Number of major defects in financial

reporting(a) 0

Number of major defects in non-financial

reporting (a) 0

Number of important defects in financial

reporting(a) 0

Number of important defects in non-

financial reporting(a) 0

2. Internal Control Audit Report

√ Applicable □ Not applicable

Opinion in the internal control audit report

As of December 31 2024 the internal control over financial reporting of Bengang Bancai is effective in all

material aspects in accordance with ‘Fundamental Rules of Enterprise Internal Control’ and relevant regulations.Internal Control Audit Report

Status Disclosure

Disclosure date of audit report of

internal control (full-text) April 4 2025

Index of audit report of internal http://www.cninfo.com.cn

56Bengang Steel Plates Co. Ltd. Annual Report 2024

control (full-text)

Internal audit report’s opinion Standard unqualified opinion

Whether there is significant defect

in non-financial report No

Whether the accountants’ firm issued a qualified opinion on report of internal control audit

□ Yes √ No

Whether the internal control audit report issued by the accountants’ firm agree with the self-assessment report of

the Board of Directors

√ Yes □ No

XV. Rectification of issues found in self-examination of special actions for listed company governance

During the reporting period the company actively implemented the instructions of the "Opinions of the State Council on Further

Improving the Quality of Listed Companies" and in accordance with the requirements of the "Announcement on Launching a Special

Action on the Governance of Listed Companies" (No. 69 2020) of the China Securities Regulatory Commission carried out self-

examination and self-correction of listed company governance in accordance with the principle of seeking truth from facts and

compiled the "Special Self-examination List of Listed Company Governance" which truly accurately and completely reflects the legal

problems of listed companies and the relevant regulatory rectifications. By strengthening the endogenous driving force of corporate

governance improving corporate governance system rules and building a good corporate governance ecology the company has further

improved the governance structure of listed companies with each performing its duties assuming its responsibilities coordinating

operations and effectively checking and balancing laying a solid foundation for the high-quality development of listed companies and

improving the governance level of listed companies.

57Bengang Steel Plates Co. Ltd. Annual Report 2024

V. Environment and Social Responsibilities

I. Major Environmental Issues

Whether the listed company and its subsidiaries are key pollutant-discharging units announced by the environmental protection

department

√ Yes □ No

Environmental protection related policies and industry standards

Implement the relevant ecological environment related policies such as the Environmental Protection Law of the People's Republic of

China the Environmental Impact Assessment Law of the People's Republic of China the Water Pollution Prevention and Control

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

Pollution Prevention and Control Law of the People's Republic of China and the Solid Waste Pollution Prevention and Control Law

of the People's Republic of China and implement the Water Pollutant Emission Standard for the Iron and Steel Industry (GB13456-

2012) the Pollutant Emission Standard for the Coking Chemical Industry (GB 16171-2012) the Air Pollutant Emission Standard for

Sintering and Sintering Pelletizing in the Iron and Steel Industry (GB28662-2012) the Air Pollutant Emission Standard for the

Ironmaking Industry (GB28663-2012) the Air Pollutant Emission Standard for the Steel Rolling Industry (GB28665-2012) and the

Air Pollutant Emission Standard for Thermal Power Plants (GB13223-2011).Environmental protection administrative license situation

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

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

management requirements. In 2022 two units changed their registrations and applied for a registration receipt for fixed pollution

sources in March 2020 which is valid until 2025. In 2024 two units reapplied for approval and were valid until February 2029 and

April 2029 respectively. The company strictly implements the stable operation of environmental protection facilities strictly controls

the emission of pollutants discharges pollutants within the permitted scope every year and submits quarterly implementation reports

and annual reports online as required.Industry emission standards and specific information on pollutant emissions involved in production and operation activities

Types of Names

main of main Impleme

Name of Emissio Exceedi

pollutant pollutant Number Distribut nted Approve

company Emissio n Total ng

s and s and of ion of pollutant d total

or n concentr emission emission

character character emission emission emission emission

subsidiar method ation/int amount standard

istic istic outlets outlets standard amount

y ensity s

pollutant pollutant s

s s

Energy

Not

Bengang Wastewa Plant

approve

Steel ter continuo Wastewa 50.69

COD 1 14 50 d by the none

Plates pollutant us ter tons

governm

Co. Ltd. s Treatme

ent

nt Plant

Energy Not

Bengang Wastewa

Ammoni Plant approve

Steel ter continuo 3.35

a 1 Wastewa 0.31 8 d by the none

Plates pollutant us tons

nitrogen ter governm

Co. Ltd. s

Treatme ent

58Bengang Steel Plates Co. Ltd. Annual Report 2024

nt Plant

Raw

material

dumper

transfer

station

ore

receivin

g trough

pre-

batch;

iron-

making

tapping

yard

furnace

top fuel

solvent Raw Raw

whole materials materials

grain 12-15; 25;

ore coke sintering sintering

trough 1.36-28; 50-30;

sintering ironmaki ironmaki

machine ng 0.76- ng 25;

head 8; steelmak

dust steelmak ing

removal ing 0.6- Smoke 20-50; Not

Bengang Continu machine 10; 595

Exhaust special approve

Steel ous and tail dust special tons

pollutant Particles 191 steel 20; d by the none

Plates intermitt removal; steel 0.7- dust

s coking governm

Co. Ltd. ent steelmak 10; 9518 10-50; ent

ing coking tons power

molten 0.7-7; generati

steel power on

pretreat generati 10-30;

ment on 0.2-7; cold

north- cold rolling

south rolling; 20; hot

backflo 6-18 hot rolling

w rolling 20-30.station 2-6.tundish

primary

dust

removal

secondar

y dust

removal

refining

dust

removal;

special

steel

electric

furnace

refining

furnace;

59Bengang Steel Plates Co. Ltd. Annual Report 2024

coking

coal

adding

coke

pushing

dry

quenchin

g

chimney

desulfuri

zation

and

denitrific

ation;

power

generati

on boiler

dust

removal

desulfuri

zation

and

denitrific

ation;

cold

rolling

acid

regenera

tion

pickling

straighte

ning

welding

machine

leveling

annealin

g

roasting;

hot

rolling

heating

furnace.Sintering Sintering Sintering

machine machine machine

head; head 13- head

coke 40; coke 200;

oven oven coke

chimney chimney oven 50- Not

Bengang Continu

Exhaust ; power 7-17; 100; approve

Steel Sulfur ous and 2167

pollutant 65 boiler power power d by the none

Plates dioxide intermitt tons

s desulfuri generati generati governm

Co. Ltd. ent

zation; on 2-21; on 100- ent

cold cold 200;

rolling rolling cold

roasting 11-25; rolling

annealin hot 100; hot

g; hot rolling rolling

60Bengang Steel Plates Co. Ltd. Annual Report 2024

rolling 3-44. 150

heating

furnace.Sintering Sintering

Sintering

machine machine

machine

head 25- head

head;

77;300;

coking

coking coking

chimney

chimney chimney

; power Not

Bengang Continu 77-177; 150-500;

Exhaust boiler; approve

Steel Nitrogen ous and power power

cold 6195 pollutant 58 d by the none

Plates oxides intermitt generati generati

s rolling

tons

governm

Co. Ltd. ent on 20- on 100-

roasting; ent

60; cold 200;

annealin

rolling cold

g; hot

84-94; rolling

rolling

hot 200; hot

heating

rolling rolling

furnace.

10-100.300.

Treatment of pollutants

In 2024 the Company will coordinate the overall situation of corporate development and environmental protection comprehensively

promote ultra-low emission transformation adopt a process technology route that combines source reduction process control and end-

of-pipe treatment and complete 65 ultra-low emission transformation projects including the dust removal system transformation of

the former second operation area of the Ironmaking General Plant the dust removal transformation of the raw materials and steelmaking

areas of the steelmaking plant the electrostatic precipitator transformation of the sintering machine head the heat treatment

transformation of the production line of the hot rolling plant and the transformation of the scrap steel yard of the resource service

branch. With the gradual commissioning of the projects the company's total pollutant emissions have continued to decline and the

company's environmental protection management and control capabilities have been significantly improved. The total amount of

pollutant emissions decreased year-on-year: sulfur dioxide decreased by 47.67% and nitrogen oxides decreased by 29.91%.The Company has made every effort to promote the company's clean transportation work managed vehicle emission standards for

more than 1000 materials introduced 3320 National VI vehicles and 60 electric heavy trucks gradually eliminated old vehicles and

non-road mobile machinery that do not meet ultra-low requirements and deploy battery swap stations charging piles hydrogen stations

and other facilities on major transportation routes to broaden the application scenarios of new energy vehicle services. The company

completed the corresponding transformation of related systems such as material holding and metering. The control of vehicles involving

bulk materials and products of National VI and above is under control and all functions required for clean transportation requirements

have been realized in stable operation. The transportation vehicles and non-road mobile machinery in the factory meet the requirements

of ultra-low emission clean transportation publicity. The average level of clean transportation + electric card ratio has increased from

68% to 81.75% (including: clean transportation ratio 77.07%) and the ultra-low emission publicity of clean transportation will be

completed in the second half of 2024.Environmental Self-Monitoring Program

During the reporting period the following monitoring points were manually monitored for pollution sources: 279 flue gas monitoring

points 13 wastewater monitoring points 19 factory boundary noise monitoring points and 12 air dust fall points. (1) 279 flue gas

monitoring points: 203 organized monitoring points and 76 unorganized monitoring points. According to the monitoring plan the

monitoring was carried out at weekly monthly quarterly semi-annual and annual frequencies completing routine monitoring tasks

for unorganized and organized atmospheric flue gas. A total of 704 monitoring data were obtained throughout the year. (2) 13

wastewater monitoring points: According to the monitoring plan the monitoring was carried out at weekly monthly and quarterly

frequencies and 1264 monitoring data were obtained throughout the year. (3) 19 factory boundary noise monitoring points: According

to the monitoring plan the monitoring was carried out at quarterly frequencies and 116 monitoring data were obtained throughout the

year. (4) 12 air dust fall points: According to the monitoring plan the monitoring was carried out at quarterly frequencies and 124

monitoring data were obtained throughout the year.

61Bengang Steel Plates Co. Ltd. Annual Report 2024

Emergency Plan for Sudden Environmental Events

The company and its 13 subordinate units strictly carry out environmental emergency management in accordance with the current laws

and regulations such as the Law of the People's Republic of China on Response to Emergency Events the Notice on Issuing the

Guidelines for Risk Assessment of Sudden Environmental Events in Enterprises (Trial) and the Measures for the Administration of

Filing of Emergency Plans for Sudden Environmental Events in Enterprises and Institutions (Trial) complete the revision of the

emergency plan for sudden environmental events re-carry out risk assessment and emergency resource investigation and complete the

assessment and filing work in accordance with the management requirements of the Municipal Bureau. At the same time all units of

the company formulated a 2024 exercise plan in accordance with the plan and carried out corresponding plan exercises.Investment in environmental governance and protection and payment of environmental protection tax

1. The operating expenses of environmental protection facilities in 2024 are 1.003 billion yuan and the environmental protection tax

paid is 24.27 million yuan.

2. In 2024 an investment of 1.84 billion yuan was made to fully promote ultra-low emission transformation.

Measures taken to reduce its carbon emissions during the reporting period and their effects

□Applicable □Not applicable

Through technology upgrades equipment transformation energy conservation and emission reduction measures the company has

reduced energy consumption per unit of output value and unit carbon emissions have decreased year by year. The company has

achieved fruitful results in green and low-carbon development. Give full play to the synergistic advantages of smelting facilities

process structure energy structure and material technology and propose three low-carbon metallurgical technology paths which will

be implemented in stages to meet customer needs. High-quality scrap steel is melted into "semi-steel" molten steel in an electric furnace

and 50% molten iron transported from the blast furnace to the electric furnace is added. They are transported together for converter

smelting and then rolled. Taking the production of hot-dip galvanized products as an example this path reduces carbon by 34%

compared to the long process production of slabs and reduces it by 26% to the end product. Considering the green electricity deduction

of the entire process it reduces it by 38% to the end product. Environmental product declarations for six products including hot-dip

galvanized IF steel cold-rolled IF steel and hot-rolled pickled low-carbon stamping steel have been issued and third-party EPD

certification has been carried out. Through the implementation of photovoltaic power generation projects the three cold rolling mills

storage and transportation center sewage treatment center 2250 hot rolling mill and office building storage and transportation center

and parking lot of Building 4 have a construction area of 310000 square meter with an average annual power generation of 15.081

million kWh. The electric furnace project of Bengang Plate Special Steel Division has introduced new technologies and equipment

from Japan Steel Plantech (SPCO for short). It is the first Japanese SPCO ecological electric furnace (ECOARC electric furnace) in

China. It adopts vertical furnace continuous scrap preheating and flat molten pool smelting technology representing the international

advanced level of electric furnace technology today. The carbon emission per ton of steel in the whole process is 0.43t a low-carbon

leading level and the use of Bengang's green electricity resources to achieve a near "zero carbon" production line.Administrative penalties for environmental issues during the reporting period

Impact on the

Corrective

Name of company production and

Reason for penalty Violation Result of penalty measures of the

or subsidiary operation of the

company

listed company

none none none none none none

Other environmental information that should be disclosed

None

62Bengang Steel Plates Co. Ltd. Annual Report 2024

Other environmental protection related information

None

II. Social Responsibility

For details please refer to the 2024 Environmental Social and Governance (ESG) Report of Bengang Plate Co. Ltd. disclosed by the

company on www.cninfo.com.cn on April 4 2025.III. Consolidation and expansion of poverty alleviation achievements and rural revitalization

The company continues to deepen the practice of "I do practical things for the people". In 2024 all 13 projects in 10 aspects of the key

livelihood projects of "I do practical things for the people" have been implemented which continuously improves the sense of gain

happiness and security of the employees. Strictly implement the working principle of "build as much as possible help as much as

possible dynamic management and precise policy implementation" effectively solve problems for needy employees and issue

406500 yuan of relief funds to 27 needy employees throughout the year promote the full coverage of filing and assistance for needy

employees who meet the filing standards and effectively do things that benefit the people's livelihood things that warm the people's

hearts and things that conform to the will of the people.The company actively selects outstanding cadres to participate in rural revitalization work and currently 2 people serve as the first

secretaries of the village. The village cadres closely focus on the guiding ideology and policies of enriching and benefiting the people

of the central and provincial governments on rural revitalization work based on the actual situation of the villages they are stationed

in do not forget their original intentions keep their missions in mind and have completed the consolidation and expansion of poverty

alleviation achievements and rural revitalization work in 2024.

63Bengang Steel Plates Co. Ltd. Annual Report 2024

VI. Important Events

I. Implementation of commitments

1. Commitments that the actual controller shareholders related parties acquirers and the company and

other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of the

reporting period

□Applicable □Not applicable

Reason for Commitment Commitment Commitment Commitment Commitment Performance

commitment party type content time period status

In order to

maintain the

independence

of Bengang

Steel Plates Co.Ltd. Angang

Group Co. Ltd.promises as

follows:

1.Angang

Group Co. Ltd.guarantees to

keep Bengang

Steel Plates Co.Ltd. separate in

terms of assets

personnel

finance

institutions and

business and

Commitments strictly abide by

made in the relevant

acquisition Angang Group Other regulations of August 20

reports or Co. Ltd. commitments the China

Long term In progress

2021

equity change Securities

reports Regulatory Commission on

the

independence

of listed

companies and

will not use its

controlling

position to

interfere with

the

standardized

operation of

Bengang Steel

Plates Co. Ltd.interfere with

the business

decisions of

Bengang Steel

Plates Co. Ltd.or damage the

64Bengang Steel Plates Co. Ltd. Annual Report 2024

legitimate

rights and

interests of

Bengang Steel

Plates Co. Ltd.and other

shareholders.Angang Group

Co. Ltd. and its

controlled

subsidiaries

guarantee not to

illegally occupy

the funds of

Bengang Steel

Plates Co. Ltd.and its

controlled

subsidiaries in

any way. 2. The

above

commitments

will remain

valid during the

period when

Angang Group

Co. Ltd.controls

Bengang Steel

Plates Co. Ltd..If Angang

Group Co. Ltd.fails to fulfill

the above

commitments

and causes

losses to

Bengang Steel

Plates Co. Ltd.Angang Group

Co. Ltd. will

bear the

corresponding

compensation

liability.To avoid

horizontal

competition

Angang Group

Co. Ltd.undertakes as

follows: (1)

With regard to

the overlap of

some

Angang Group Other businesses August 20

Co. Ltd. commitments between

Long term In progress

2021

Angang Group

Co. Ltd. and

Bengang Steel

Plates Co. Ltd.after the

completion of

this acquisition

in accordance

with the

requirements of

65Bengang Steel Plates Co. Ltd. Annual Report 2024

current laws

regulations and

relevant

policies

Angang Group

Co. Ltd. will

within 5 years

from the date of

this letter of

commitment

and strive to

achieve the

same within a

shorter period

of time in

accordance

with the

requirements of

relevant

securities

regulatory

authorities and

on the premise

of complying

with the laws

regulations and

relevant

regulatory rules

applicable at

that time and in

line with the

principle of

benefiting the

development of

Bengang Steel

Plates Co. Ltd.and

safeguarding

the interests of

shareholders

especially the

interests of

small and

medium-sized

shareholders

steadily

promote the

integration of

related

businesses to

resolve the

problem of

horizontal

competition by

comprehensivel

y using a variety

of methods such

as asset

restructuring

business

adjustments

and entrusted

management.The above

solutions

include but are

not limited to:

66Bengang Steel Plates Co. Ltd. Annual Report 2024

1) Asset

restructuring:

adopt cash

consideration or

share issuance

consideration

and other

methods

permitted by

relevant laws

and regulations

to purchase

assets asset

replacement

asset transfer or

other feasible

restructuring

methods

gradually sort

out and

reorganize the

assets of

Angang Group

Co. Ltd. and

Bengang Plate

with

overlapping

businesses and

eliminate the

overlap of some

businesses; 2)

Business

adjustment: sort

out the business

boundaries and

make every

effort to achieve

differentiated

operations such

as different

ways to achieve

business

differentiation

through asset

transactions

business

division etc.including but

not limited to

differentiation

in business

composition

product grade

application

field and

customer

groups; 3)

Entrusted

management:

by signing an

entrustment

agreement one

party fully

entrusts the

decision-

making power

and

67Bengang Steel Plates Co. Ltd. Annual Report 2024

management

power involved

in the operation

of some

relevant assets

with

overlapping

businesses to

the other party

for unified

management; 4)

Other feasible

solutions within

the scope

permitted by

laws

regulations and

relevant

policies. The

implementation

of the above

solutions is

subject to the

necessary

review

procedures for

listed

companies the

approval

procedures of

securities

regulatory

authorities and

relevant

competent

authorities in

accordance

with relevant

laws and

regulations. (2)

Angang Group

Co. Ltd. has

not yet

formulated a

specific

implementation

plan and time

schedule for

resolving the

issue of overlap

between

Angang Group

Co. Ltd. and

Bengang Steel

Plates Co. Ltd..Angang Group

Co. Ltd. will

fulfill its

information

disclosure

obligations in

accordance

with relevant

laws and

regulations in a

timely manner

after

68Bengang Steel Plates Co. Ltd. Annual Report 2024

formulating a

specific and

feasible plan;

(3) In addition

to the above

circumstances

when Angang

Group Co. Ltd.or other

subsidiaries

obtain business

opportunities

that may

compete with

Bengang Steel

Plates Co. Ltd.'

business

Angang Group

Co. Ltd. will

make every

effort to give

Bengang Steel

Plates Co. Ltd.priority

development

rights and

priority

acquisition

rights for such

opportunities

ensure that the

price of the

relevant

transaction is

fair and

reasonable and

will use the

business

practices

followed in

normal

commercial

transactions

with

independent

third parties as

the basis for

pricing; (4)

Angang Group

Co. Ltd.guarantees to

strictly abide by

laws

regulations and

the provisions

of the "Articles

of Association

of Bengang

Steel Plates Co.Ltd. Co. Ltd."

and its relevant

management

systems and

will not use its

position as an

indirect

controlling

69Bengang Steel Plates Co. Ltd. Annual Report 2024

shareholder of

Bengang Steel

Plates Co. Ltd.to seek

improper

interests

thereby

damaging the

rights and

interests of

other

shareholders of

Bengang Steel

Plates Co. Ltd.;

(5) The above

commitments

made by

Angang Group

Co. Ltd. are

valid during the

period when

Angang Group

Co. Ltd.controls

Bengang Steel

Plates Co. Ltd..If the rights and

interests of

Bengang Steel

Plates Co. Ltd.are damaged

due to the

violation of the

above

commitments

Angang Group

Co. Ltd. is

willing to bear

the

corresponding

liability for

damages.In order to

regulate and

reduce the

related-party

transactions

between

Angang Group

Co. Ltd. and

listed

companies

Angang Group

Angang Group Other Co. Ltd. has

Co. Ltd. made the

August 20

Long term In progress

commitments following 2021

commitments:

1. Angang

Group Co. Ltd.will ensure that

Bengang Steel

Plates Co. Ltd.has independent

business and

complete assets

and has

independent

70Bengang Steel Plates Co. Ltd. Annual Report 2024

and complete

production

supply sales

and other

supporting

systems. 2.Angang Group

Co. Ltd. and

other

enterprises

controlled by

Angang Group

Co. Ltd. will

not use their

control over

Bengang Steel

Plates Co. Ltd.to seek priority

in transactions

with Bengang

Steel Plates Co.Ltd. and its

subsidiaries. 3.Angang Group

Co. Ltd. and

other

enterprises

controlled by

Angang Group

Co. Ltd. will

avoid and

reduce

unnecessary

transactions

with Bengang

Steel Plates Co.Ltd. and its

subsidiaries. If

there are truly

necessary and

unavoidable

transactions

Angang Group

Co. Ltd. and

other

enterprises

controlled by

Angang Group

Co. Ltd. will

sign agreements

with Bengang

Steel Plates Co.Ltd. and its

subsidiaries in

accordance

with the

principles of

fairness equity

and equal

compensation

and perform

legal

procedures. In

accordance

with the

requirements of

relevant laws

71Bengang Steel Plates Co. Ltd. Annual Report 2024

regulations and

normative

documents and

the provisions

of the Articles

of Association

of Bengang

Steel Plates Co.Ltd. Co. Ltd.they will

perform

information

disclosure

obligations and

relevant

internal

decision-

making and

approval

procedures in

accordance

with the law

and ensure that

they will not

trade with

Bengang Steel

Plates Co. Ltd.and its

subsidiaries

under

conditions that

are obviously

unfair

compared to

market prices

and will not use

such

transactions to

engage in any

behavior that

damages the

legitimate

rights and

interests of

Bengang Steel

Plates Co. Ltd.and other

shareholders of

Bengang Steel

Plates Co. Ltd..

4. If the above

commitments

are violated and

the legitimate

rights and

interests of

Bengang Plate

are damaged

Angang Group

Co. Ltd. will

compensate

Bengang Plate

for the losses

caused thereby

in accordance

with the law.

72Bengang Steel Plates Co. Ltd. Annual Report 2024

In accordance

with the

relevant

regulations of

the China

Securities

Regulatory

Commission

all directors and

senior

management of

the company

make the

following

commitments to

ensure that the

company's

measures to

make up for the

diluted

immediate

return can be

effectively

implemented: 1.I promise to

perform my

duties faithfully

and diligently to

safeguard the

legitimate

Company rights and

Commitments

directors and interests of the

made during

senior company and

initial public Other commitments all May 22 2019 Long term In progress managers/Benx

offering or shareholders. 2.i Steel Group

refinancing I promise not to

Co. Ltd. transfer benefits

to other units or

individuals

without

compensation

or under unfair

conditions nor

to harm the

interests of the

company in

other ways. 3. I

promise to

restrict the

official

consumption

behavior of the

company's

directors and

senior

management. 4.I promise not to

use the

company's

assets for

investment and

consumption

activities that

are not related

to the

performance of

their duties. 5. I

73Bengang Steel Plates Co. Ltd. Annual Report 2024

promise to

within the scope

of my duties

and authority

make every

effort to

promote the

remuneration

system

formulated by

the company's

board of

directors or the

remuneration

and assessment

committee to be

linked to the

implementation

of the

company's

measures to

make up for the

return and vote

in favor of the

relevant

proposals

reviewed by the

company's

board of

directors and

shareholders'

meeting (if I

have the right to

vote). 6. If the

company

intends to

implement

equity

incentives I

promise to

within the scope

of my duties

and authority

make every

effort to

promote the

equity incentive

exercise

conditions to be

announced by

the company to

be linked to the

implementation

of the

company's

measures to

make up for the

return and vote

in favor of the

relevant

proposals

reviewed by the

company's

board of

directors and

shareholders'

meeting (if I

74Bengang Steel Plates Co. Ltd. Annual Report 2024

have the right to

vote). 7. If the

China

Securities

Regulatory

Commission

makes other

new regulatory

provisions on

compensation

measures and

commitments

between the

date of this

commitment

and the

completion of

the company's

public offering

of convertible

corporate

bonds and the

above

commitments

cannot meet the

requirements of

the China

Securities

Regulatory

Commission

the company

promises to

issue a

supplementary

commitment in

accordance

with the latest

regulations of

the China

Securities

Regulatory

Commission.The company's

controlling

shareholder

Benxi Steel

Group Co.Ltd. promises

not to interfere

with the

company's

business

management

activities

beyond its

authority and

not to infringe

on the

company's

interests.

1. Bengang

Bengang Group International

Co. Ltd. and Other trade Co. Ltd.commitments and Bengang July 24 2019 Long term In progress Benxi Steel Steel Plates

Group Co. Ltd. Co. Ltd.'s sales

companies in

75Bengang Steel Plates Co. Ltd. Annual Report 2024

the same region

guarantee

personnel

independence

business

independence

financial

independence

and asset

independence

and guarantee

that they are not

in the same

place of

registration and

never work in

the same office;

2. In view of the

fact that

Bengang Steel

Plates Co. Ltd.has recently

completed the

registration of

foreign trade

operators and

considering that

the

qualification

level

certification of

raw material

suppliers and

customs import

and export

qualification

level

certification

still need to be

gradually

improved it

lacks the actual

conditions and

capabilities to

independently

carry out import

and export

business in the

short term. In

order to ensure

the normal

business

development of

Bengang Steel

Plates Co. Ltd.the Group

agrees that

Bengang

International

Trade Co. Ltd.will continue to

act as the agent

for the main

import and

export business

of Bengang

Steel Plates

76Bengang Steel Plates Co. Ltd. Annual Report 2024

Co. Ltd. within

a period of no

more than 5

years from the

date of issuance

of this

commitment

until Bengang

Steel Plates

Co. Ltd.believes that it

can

independently

carry out import

and export

business and

during this

period

Bengang

International

Trade Co. Ltd.will provide

necessary

support for

Bengang Steel

Plates Co. Ltd.to establish and

improve its

import and

export business.In addition

Bengang

International

Trade Co.Ltd.'s sales

companies are

only

responsible for

selling the

products of

Beiying

Iron&Steel

Group and

never sell third-

party steel

products. 3. The

three sales

companies of

the Group

namely

Shanghai

Bengang Steel

Sales Co. Ltd.Shanghai

Bengang Steel

Materials Co.Ltd. and

Guangzhou

Bonded Zone

Bengang Sales

Co. Ltd. are no

longer actually

engaged in any

business

activities. The

specific details

are as follows:

77Bengang Steel Plates Co. Ltd. Annual Report 2024

(1) Shanghai

Bengang Steel

Trading Co.Ltd. filed for

bankruptcy in

2014. The

People's Court

of Changning

District

Shanghai

issued an

announcement

to appoint

Grandall Law

Firm

(Shanghai) as

the bankruptcy

administrator.After

communicating

with the

bankruptcy

administrator

the relevant

procedures for

the cancellation

of Shanghai

Bengang Steel

Sales Co. Ltd.will be handled

immediately

after the

completion of

the

aforementioned

bankruptcy

liquidation

procedures. (2)

Shanghai

Bengang Steel

Materials Co.Ltd. is a holding

subsidiary of

Shanghai

Bengang Steel

Trading Co.Ltd. and was

cancelled in

November

2020.(3)

Guangzhou

Bonded Zone

Bengang Sales

Co. Ltd. was

cancelled in

July 2022.Benxi Steel

Group Co. Ltd.and Bengang

Bengang Group Group Co. Ltd.Co. Ltd. and Other (hereinafter Normal

Benxi Steel commitments collectively

July 24 2019 Long term execution

Group Co. Ltd. referred to as

the "Group") as

the direct and

indirect

78Bengang Steel Plates Co. Ltd. Annual Report 2024

controlling

shareholders of

Bengang Steel

Plates Co. Ltd.(hereinafter

referred to as

"Bengang

Plate") hereby

make the

following

commitments to

avoid

horizontal

competition: 1.During the

period when the

Group serves as

the controlling

shareholder of

Bengang Plate

the Group and

other

enterprises

controlled by

the Group

except Bengang

Plate will no

longer produce

or develop any

products that

compete or may

compete with

the products

produced by

Bengang Plate

and its

subsidiaries at

home and

abroad will not

directly or

indirectly

operate any

business that

competes or

may compete

with the

business

operated by

Bengang Plate

and its

subsidiaries

and will not

participate in

the investment

in any other

enterprises that

compete or may

compete with

the products

produced or

businesses

operated by

Bengang Plate

and its

subsidiaries. 2.If Bengang

Plates and its

79Bengang Steel Plates Co. Ltd. Annual Report 2024

subsidiaries

further expand

their business

scope the

Group and other

enterprises

controlled by

the Group will

not compete

with the

expanded

business of

Bengang Plates

and its

subsidiaries; if

there is a

possibility of

competition

with the

expanded

business of

Bengang Plates

and its

subsidiaries

they will

withdraw from

the competition

with Bengang

Plates in the

following ways:

(1) stop the

business that

competes or

may compete

with Bengang

Plates and its

subsidiaries; (2)

incorporate the

competing

business into

Bengang Plates

and its

subsidiaries in a

legal and

compliant

manner; (3)

transfer the

competing

business to an

unrelated third

party. 3. If the

Group has any

business

opportunity to

engage in or

participate in

activities that

may compete

with the

business

operations of

Bengang Plates

the Group shall

immediately

notify Bengang

Plates of the

above business

80Bengang Steel Plates Co. Ltd. Annual Report 2024

opportunity. If

Bengang Plates

responds

affirmatively

within a

reasonable

period specified

in the

notification that

it is willing to

utilize the

business

opportunity the

Group will try

its best to

provide the

business

opportunity to

Bengang Plates

on terms no less

favorable than

those provided

to any

independent

third party. 4. If

the above

commitments

are violated the

Group is willing

to bear all the

responsibilities

arising

therefrom and

fully

compensate or

indemnify

Bengang Plates

for all direct or

indirect losses

caused thereby.

5. This letter of

commitment

shall remain

valid and

cannot be

changed or

revoked during

the period when

the Group

serves as the

controlling

shareholder of

Bengang Plates.Benxi Steel

Group Co. Ltd.and Bengang

Group Co. Ltd.(hereinafter

Bengang Group collectively

Co. Ltd. and Other referred to as Long term Normal

Benxi Steel commitments "the Group") as

July 24 2019

execution

Group Co. Ltd. the direct and

indirect

controlling

shareholders of

Bengang Steel

Plates Co. Ltd.

81Bengang Steel Plates Co. Ltd. Annual Report 2024

(hereinafter

referred to as

"Bengang

Plate") hereby

promise to

regulate the

related

transactions

between the

Group and

Bengang Plate:

1. The Group

will fully

respect the

independent

legal person

status of

Bengang Plate

guarantee the

independent

operation and

independent

decision-

making of

Bengang Plate

ensure the

business

independence

asset integrity

personnel

independence

and financial

independence

of Bengang

Plate so as to

avoid and

reduce

unnecessary

related

transactions;

the Group will

strictly control

the related

transactions

between

Bengang Plate

and its

subsidiaries. 2.The Group and

other

companies

controlled by it

promise not to

occupy or

misappropriate

the funds of

Bengang Plate

and its

subsidiaries by

borrowing

repaying debts

advancing

funds or other

means nor

require

Bengang Plate

and its

82Bengang Steel Plates Co. Ltd. Annual Report 2024

subsidiaries to

provide illegal

guarantees for

the Group and

other

companies

controlled by it.

3. The Group

and other

companies

controlled by it

will minimize

related

transactions

with Bengang

Plate. When

conducting

related

transactions

that are truly

necessary and

unavoidable

the decision-

making

authority

decision-

making

procedures and

avoidance

system

stipulated in the

Articles of

Association of

Bengang Plates

and the

decision-

making system

for related

transactions

shall be strictly

implemented

the role of the

Supervisory

Board and

independent

directors shall

be fully

utilized and the

information

disclosure

obligations

shall be

conscientiously

fulfilled to

ensure that

transactions are

conducted in

accordance

with the

principles of

openness

fairness and

equity in market

transactions and

normal

commercial

terms. The

83Bengang Steel Plates Co. Ltd. Annual Report 2024

Group and other

companies

controlled by it

will not require

or accept

Bengang Plates

to provide more

favorable

conditions than

any third party

in any fair

market

transaction and

protect the

interests of

other

shareholders of

Bengang Plates

and Bengang

Plates from

being harmed.

4. The Group

guarantees that

the above

commitments

will remain

valid and

irrevocable

during the

period when the

Group is listed

on the domestic

stock exchange

and the Group

is its direct and

indirect

controlling

shareholder. If

any violation of

the above

commitments

occurs the

Group shall

bear all losses

caused to

Bengang Plates.Whether the

promise is

Yes

fulfilled on

time

2. If the company's assets or projects have profit forecasts and the reporting period is still within the profit

forecast period the company shall explain whether the assets or projects have achieved the original profit

forecast and the reasons for this.□Applicable □Not applicable

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

other related parties

84Bengang Steel Plates Co. Ltd. Annual Report 2024

□Applicable □Not applicable

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

other related parties.III. Illegal external guarantees

□Applicable □Not applicable

The company did not provide any illegal external guarantees during the reporting period.IV. The Board of Directors’ Statement on the Latest “Non-standard Audit Report”

□Applicable □Not applicable

V. Explanation of the Board of Directors the Board of Supervisors and the Independent

Directors (if any) on the “Non-standard Audit Report” of the Accounting Firm during the

Reporting Period

□Applicable □Not applicable

VI. Description of changes in accounting policies accounting estimates or corrections of

significant accounting errors compared with the previous year's financial report

?Applicable □Not applicable

1. Change of major accounting policy during this reporting period

(1) Implementation of Interpretation of Enterprise Accounting Standards No. 17

The Ministry of Finance issued the "Interpretation of the Enterprise Accounting Standards No. 17 "

(Accounting [2023] No. 21 hereinafter referred to as "Interpretation No. 17") on October 25 2023.

A. Classification of current liabilities and non-current liabilities

Interpretation No. 17 clarifies:

? If an enterprise does not have a substantive right to postpone the repayment of a liability for more than one

year after the balance sheet date on the balance sheet date the liability should be classified as a current

liability.? For liabilities arising from an enterprise's loan arrangement the enterprise's right to postpone the repayment

of the liability for more than one year after the balance sheet date may depend on whether the enterprise has

complied with the conditions stipulated in the loan arrangement (hereinafter referred to as the contractual

conditions). When judging whether it has a substantive right to postpone the repayment of the debt the

enterprise should only consider the contractual conditions that should be followed on or before the balance

85Bengang Steel Plates Co. Ltd. Annual Report 2024

sheet date and should not consider the contractual conditions that should be followed by the enterprise after

the balance sheet date.? Liability repayment for the purpose of classifying the liquidity of liabilities means that the enterprise

discharges the liability by transferring cash other economic resources (such as goods or services) or the

enterprise's own equity instruments to the counterparty. If the terms of a liability result in the enterprise

settling the liability by delivering its own equity instruments at the option of the counterparty if the enterprise

classifies the above option as an equity instrument and recognizes it separately as the equity component of a

compound financial instrument in accordance with the provisions of Accounting Standard for Enterprises No.

37 - Presentation of Financial Instruments the term does not affect the liquidity classification of the liability.

This interpretation will be effective from January 1 2024. The aforementioned regulations have no

significant impact on the Company's financial reports.B. Disclosures about supplier financing arrangements

Interpretation No. 17 requires that when an enterprise makes a note disclosure it should disclose information

related to supplier financing arrangements in a summary manner to help users of financial statements assess

the impact of these arrangements on the liabilities cash flows and liquidity risk exposure of the enterprise.The impact of supplier financing arrangements should also be considered when identifying and disclosing

liquidity risk information. This disclosure provision only applies to supplier financing arrangements. A

supplier financing arrangement refers to a transaction with the following characteristics: one or more

financing providers provide funds to pay the amount owed by the enterprise to its suppliers and it is agreed

that the enterprise will repay the financing providers on the day or after its suppliers receive the payment in

accordance with the terms and conditions of the arrangement. Compared with the original payment due date

the supplier financing arrangement extends the payment period of the enterprise or advances the collection

period of the enterprise's suppliers.This interpretation will be effective from January 1 2024. The aforementioned regulations have no

significant impact on the Company's financial reports.C. Accounting treatment of sale and leaseback transactions

Interpretation No. 17 provides that when a lessee subsequently measures the lease liability arising from a sale

and leaseback the method of determining the lease payments or the modified lease payments shall not result

in the recognition of gains or losses related to the right of use obtained from the leaseback. When an enterprise

first implements this provision it shall make retrospective adjustments to sale and leaseback transactions

conducted after the first implementation date of Enterprise Accounting Standard No. 21 - Leases.This interpretation will be effective from January 1 2024. The aforementioned regulations have no

significant impact on the Company's financial reports.

86Bengang Steel Plates Co. Ltd. Annual Report 2024

(2) Implement the "Interim Provisions on Accounting Treatment of Enterprise Data Resources"

On August 1 2023 the Ministry of Finance issued the "Interim Provisions on Accounting Treatment of

Enterprise Data Resources" (Accounting [2023] No. 11) which applies to data resources that are recognized

as intangible assets or inventory and other assets in accordance with the relevant provisions of the Enterprise

Accounting Standards as well as data resources that are legally owned or controlled by the enterprise and

are expected to bring economic benefits to the enterprise but do not meet the conditions for asset recognition

and are not recognized. The relevant accounting treatment and put forward specific requirements for the

disclosure of data resources.This provision will take effect on January 1 2024. Enterprises should adopt the prospective application

method. Data resource-related expenses that have been expensed and included in profit and loss before the

implementation of this provision will no longer be adjusted. The implementation of this provision has no

significant impact on the company's financial position and operating results.

(3) Implement the provisions of "Interpretation No. 18 of the Enterprise Accounting Standards on the

accounting treatment of quality assurance that is not a single performance obligation"On December 6 2024 the Ministry of Finance issued the “Interpretation No. 18 of the Enterprise AccountingStandards" (Accounting [2024] No. 24 hereinafter referred to as "Interpretation No. 18") which will be

implemented from the date of issuance and enterprises are allowed to implement it in advance from the year

of issuance.Interpretation No. 18 stipulates that when accounting for the estimated liabilities arising from the quality

assurance of the guarantee type that does not belong to the single performance obligation it shall be debited

to the "principal business cost" and "other business cost" and other accounts and credited to the "estimated

liabilities" account according to the relevant provisions of the "Enterprise Accounting Standard No. 13-

Contingencies" according to the determined estimated liabilities and shall be listed in the "operating costs"

in the income statement and the "other current liabilities" "non-current liabilities due within one year"

"estimated liabilities" and other items in the balance sheet.When the enterprise implements the content of this interpretation for the first time if the original provision

of the quality assurance of the guarantee type is included in the "sales expenses" it shall be retroactively

adjusted in accordance with the change in accounting policies. The above provisions have no significant

impact on the financial statements of the Company.

2. Change of accounting estimate during the reporting period

There is no significant changes in accounting estimates during the reporting period.VII. Explanation of changes in the scope of the consolidated financial statements compared

with the previous year's financial report

87Bengang Steel Plates Co. Ltd. Annual Report 2024

□Applicable □Not applicable

The company acquired 100% equity of North Hengda Logistics Co. Ltd. held by Benxi Steel Group Co. Ltd. After the completion

of this transaction Hengda Logistics became a wholly-owned subsidiary of the company and was included in the company's

consolidated financial statements.VIII . Appointment and dismissal of accounting firms

Accountant’s firm currently appointed

Name of domestic accounting firm BDO China Shu Lun Pan Certified Public Accountants LLP

Remuneration of domestic accounting firm (RMB 10000) 295

Continuous years of audit services provided by domestic

accounting firm

Name of domestic certified public accountant Wang Hongna Fu Yangyi

Continuous years of audit services provided by domestic

1 year for Wang Hongna 2 years for Fu Yangyi

certified public accountant

Name of foreign accounting firm (if any) Not applicable

Continuous years of audit services provided by foreign

Not applicable

accounting firm (if any)

Name of foreign certified public accountant (if any) Not applicable

Continuous years of audit services provided by foreign certified

Not applicable

public accountant (if any)

Whether to hire a new accounting firm during the current period

□Yes □No

Employment of internal control audit accounting firms financial advisors or sponsors

?Applicable □Not applicable

This year the company hired BDO China Shu Lun Pan Certified Public Accountants LLP as its internal control audit accounting

firm and the audit fee was RMB 600000.IX. Situations of delisting after the disclosure of the annual report

□Applicable □Not applicable

X. Bankruptcy and reorganization related matters

□Applicable □Not applicable

The company did not have any bankruptcy reorganization related matters during the reporting period.XI. Major litigation and arbitration matters

?Applicable □Not applicable

Basic Amount Whether Progress of Results and Execution of

Date of Disclosure

information involved (in estimated litigation impact of litigation

88Bengang Steel Plates Co. Ltd. Annual Report 2024

of litigation 10000 yuan) liabilities are (arbitration) litigation (arbitration) disclosure index

(arbitration) formed (arbitration) judgment

Summary of

matters

where the

company

Handle

does not

according to

meet the 5405.7 None Under review None

legal

disclosure

provisions

standards for

major

litigation

(arbitration)

XII . Penalties and Rectification

?Applicable □Not applicable

Investigation Conclusion (if Disclosure

Name Type Reason Penalty Type any) Disclosure Date Index

Before 2019

the company

failed to

promptly settle

the port and

transit

consumption of

raw materials

procured on

behalf of

others resulting China Announcement

in inaccurate Securities Issue a warning on Receiving

Bengang Steel

disclosure of Regulatory letter and Warning Letter

Plates Co. Ltd.the amounts of Commission record it in the from Liaoning

Gao Lie Shen other May 18 2024

relevant report takes securities and Securities

Qiang Zhao

items in the administrative futures market Regulatory

Zhonghua

current period; supervision integrity file Bureau (No.:

at the same measures 2024-022)

time there was

also a lack of

independence

in the

procurement

business and

irregular

management of

accounting

files.XIII. Integrity of the company and its controlling shareholders and actual controllers

□Applicable □Not applicable

89Bengang Steel Plates Co. Ltd. Annual Report 2024

XIV. Major Related-Party Transactions

1. Related-party transactions related to daily operations

?Applicable □Not applicable

Pricin Amou The

Propo Appro Whet Settle

g nt of marke

Relate rtion ved her ment

princi Relate Affili t price

d of the transa the metho

ples d ated of

Relate Relati Trans party amou ction appro d of Disclo Disclo

of party Trans simila

d onshi action transa nt of amou ved relate sure sure

relate transa action r

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

d ction (ten transa

conte r thousa is party

party price thousa ctions

nt transa nd excee transa

transa nd availa

ctions yuan) ded ctions

ctions Yuan) ble

Anste Also

el belon Purch

Scrap g to ase of

Procu

Goods remen

Marke Relate

Resou Anga t of t- d

Accor

rces ng /Acce Main orient Party 1124 2.06% 1577

ding 2-

No to the Yes Dec- 2023-

(Ansh Iron ptance Raw ed Agree 80.20 00 agree 23 068

an) and of Mater Princi ment

Co. Steel Servic ials ples Price

ment

Ltd. Group es

Also

belon Purch

g to ase of

Procu Marke Relate

Anste Anga Goods

remen t- d Accor

el ng /Acce

t of orient Party 3162. ding 2- 2023-

Co. Iron ptance

Main ed Agree 11 0.06% 3200 No to the Yes Dec-

Ltd. Raw agree 23

068

and of Princi ment

Steel Servic

Mater

ials ples Price

ment

Group es

Anste

el Also

Group belon Purch Procu

Intern g to ase of Marke Relate

ationa Anga Goods

remen Accor

t of t- d

l ng /Acce Main orient Party 1858 2800

ding 2-

ptance ed Agree 9.30 0.34% 0 No to the Yes Dec-

2023-

Econo Iron Raw 068

mic & and of Mater Princi ment

agree 23

Trade Steel Servic ials ples Price

ment

Co. Group es

Ltd.Anste

el Also belon PurchGroup Procu

Minin g to

ase of remen Marke Relate

Anga Goods t- d

Accor

g ng /Acce

t of

Main orient Party 3086 3100

ding 2- 2023-

Gong Iron ptance Raw ed Agree 6.73

0.56% 0 No to the Yes Dec- 068

chang and of Mater Princi ment

agree 23

ling Servic ples Price ment

Co. Steel es ials

Ltd. Group

Ansha Also Purch Procun Iron belon Marke Relatease of remen t- d Accorand g to Goods t of orient Party 2117. ding 2-Steel Anga 2023-

Group ng /Acce

Main 0.04% 2200 No to the Yes Dec-

ptance Raw

ed Agree 13 agree 23 068

Co. Iron Princi ment

Ltd. and of

Mater ment

ials ples Price

90Bengang Steel Plates Co. Ltd. Annual Report 2024

Steel Servic

Group es

Benxi

Beiyi Purch

ng Also ase of Procuremen Marke RelateIron belon Goods t of t- d

Accor

& g to /Acce Main orient Party

1145 20.94 1493 ding 2- 2023-

Steel Benga ptance Raw ed Agree

170.4 % 000 No to the Yes Dec- 068

(Grou ng of Princi ment 1 agree 23

p) Group Servic Materials ples Price

ment

Co. es

Ltd.Benxi

Iron Purch Procu

& The ase of remen Marke Relate Accor

Steel same Goods t- d

(Grou parent /Acce

t of

Main orient Party 7095 12.97 7500

ding 2-

No to the Yes Dec- 2023-

p) comp ptance Raw ed Agree 36 % 00 agree 23 068

Minin any of Mater Princi ment Servic ples Price ment g Co. ials

Ltd. es

Benxi

Iron

&

Steel Purchase of Procu(Grou The remen Marke Relate

p) same Goods t of t- d

Accor

Indust parent /Acce Main orient Party 2231 3100

ding 2- 2023-

rial comp ptance Raw ed Agree 4.12

0.41% 0 No to the Yes Dec-agree 23 068

Devel any of Princi ment

opme Servic

Mater

ials ples Price

ment

nt es

Co.Ltd.Benxi Purch

Iron ase of Procu Marke Relate

& Goods remen Accor

Steel parent /Acce t of

t- d

comp Main orient Party

ding 2-

(Grou ptance 42.3 0.00% 50 No to the Yes Dec-

2023-

p) any of Raw

ed Agree

Princi ment agree 23

068

Co. Servic Mater ples Price ment

Ltd. es ials

Also

belon Purch Procu

Anste g to

ase of

Goods remen

Marke Relate

t- d Accor

el Anga /Acce t of ng Auxili orient Party 316.1

ding 2-

Co. ptance ed Agree 8 0.01% 320 No to the Yes Dec-

2023-

Ltd. Iron of ary Princi ment agree 23

068

and Servic Mater ples Price ment Steel es ials Group

Anste

el

Group Also belon PurchEngin ase of Procug to remen Marke Relateeering Goods t- d Accor

Techn Anga t of ng /Acce Auxili orient Party 730.4

ding 2-

ology 0.01% 750 No to the Yes Dec-

2023-

Devel Iron

ptance ary ed Agree 9 068

and of Mater Princi ment

agree 23

opme ment

nt Steel

Servic ials ples Price

Co. Group

es

Ltd.Anste Also Purch Procu Marke Relate

el belon ase of remen t- d Accor 2- 2023-

Group g to Goods t of orient Party 35 0.00% 2000 No ding Yes Dec-to the 23 068 Intern Anga /Acce Auxili ed Agree

91Bengang Steel Plates Co. Ltd. Annual Report 2024

ationa ng ptance ary Princi ment agree

l Iron of Mater ples Price ment

Econo and Servic ials

mic & Steel es

Trade Group

Co.Ltd.Anste

el

Group Also Purch

Zhong belong to ase of

Procu

remen Marke Relateyuan Goods t- d Accor

Indust Anga t of ding 2-

rial ng

/Acce

ptance Auxili

orient Party 943.9

ed Agree 9 0.02% 1000 No to the Yes Dec-

2023-

Devel Iron ary

068

and of Mater Princi ment

agree 23

opme Servic ples Price ment

nt Steel es ials

Co. Group

Ltd.Also

Ansha belon Purch Procu

n Iron g to ase of Goods remen

Marke Relate Accor

and Anga t of t- d

Steel ng /Acce Auxili orient Party 2652.ding 2-

ptance ed Agree 06 0.05% 2700 No to the Yes Dec-

2023-

Group Iron ary agree 23 068

Co. and of Servic Mater

Princi ment

ples Price ment Ltd. Steel es ials Group

Purch

Benxi Parent ase of

Procu

remen Marke RelateSteel Accor

Electr Comp

Goods t- d

any's /Acce

t of

Auxili orient Party 1822 0.33% 2002

ding 2-

No to the Yes Dec- 2023-ical Assoc ptance ary ed Agree 6.98 5 068 Co. of Princi ment agree 23

Ltd. iate Servic Mater ment

es ials

ples Price

Benxi

Iron

&

Steel Purch

(Grou The ase of

Procu Marke Relate

p) same Goods

remen

t of t- d

Accor

Machi parent /Acce Auxili orient Party 1882 1000

ding 2-

ptance ed Agree 1.64 0.34% 0 Yes to the Yes Dec-

2023-

nery comp ary agree 23 068

Manu any of Servic Mater

Princi ment

facturi ials ples Price

ment

ng es

Co.Ltd.Benxi

Iron Purch

& Procu

Steel The

ase of

Goods remen

Marke Relate

same t of t- d

Accor

(Grou /Acce ding 2-

p) parent ptance Auxili

orient Party 1000

ed Agree 308.3 0.01% 0 No to the Yes Dec-

2023-

Const comp of ary agree 23

068

ructio any Servic Mater

Princi ment

ples Price ment

n Co. es ials

Ltd.Benxi Purch

Iron The ase of

Procu

remen Marke Relate& same Goods t- d

Accor

Steel parent /Acce

t of ding 2-

(Grou ptance Auxili

orient Party 1816. 2023-

comp ary ed Agree 32

0.03% 1900 No to the Yes Dec-

p) of Princi ment agree 23

068

Equip any Servic Mater ment

ment es ials

ples Price

92Bengang Steel Plates Co. Ltd. Annual Report 2024

Engin

eering

Co.Ltd.Benxi

Iron

&

Steel Purch

(Grou The ase of

Procu

Goods remen

Marke Relate

t- d Accorp) same t of

Indust parent /Acce orient Party 2819 3000

ding 2- 2023-

rial comp ptance

Auxili 0.52% No to the Yes Dec-

of ary

ed Agree 4.88 0 agree 23 068

Devel any Princi ment

opme Servic

Mater

ials ples Price

ment

nt es

Co.Ltd.Benxi

Iron

& Also

Steel belon Purch Procu

(Grou g to ase of remen Marke Relate Accor

p) Anga Goods/Acce t of

t- d

orient Party 701.6 ding 2-Infor ng ptance Auxili ed Agree 9 0.01% 750 No to the Yes Dec-

2023-

matio Iron ary agree 23 068

n & and of Mater Princi ment ment

Auto Steel Servic ials ples Price

matio Group es

n Co.Ltd.Benxi Purch

Iron ase of Procuremen Marke Relate& Goods t- d Accor

Steel parent /Acce t of orient Party 1713. ding 2-

(Grou comp ptance Auxili ed Agree 32 0.03% 2450 No to the Yes Dec-

2023-

any ary 068 p) of Princi ment agree 23

Co. Servic Materials ples Price

ment

Ltd. es

Liaoni

ng Purchase of ProcuHengt The remen Marke Relate

ai same Goods t of t- d

Accor

Heavy parent /Acce Auxili orient Party 1005.ding 2-

0.02% 1695 No to the Yes Dec- 2023-

Machi comp ptance ed Agree 16 068

nery any of

ary

Mater Princi ment

agree 23

Servic ples Price ment Co. es ials Ltd.Liaoni

ng

Hengt

ong Purch

Metall The ase of

Procu

remen Marke Relateurgica Accor

l same

Goods t of t- d /Acce orient Party 1524 1650 ding 2- 2023-

Equip parent ptance Auxilicomp ary ed Agree 5.29

0.28% 0 No to the Yes Dec-agree 23 068 ment of Princi ment

Manu any Servic Mater ples Price ment

facturi es ials

ng

Co.Ltd.Panga Also Purch Marke Relate

ng belon ase of Procu Accor

Group g to Goods remen

t- d

orient Party 236.1 ding 2- 2023-

Cheng Anga /Acce t of 0.00% 240 No to the Yes Dec-

du ng ptance Auxili

ed Agree 6 068

ary Princi ment

agree 23

Vanad Iron of ples Price ment

93Bengang Steel Plates Co. Ltd. Annual Report 2024

ium & and Servic Mater

Titani Steel es ials

um Group

Resou

rces

Devel

opme

nt

Co.Ltd.Benxi

Beiyi Purch

ng Also ase of Procu Marke Relate

Iron belon Goods remen t- d Accor

& g to /Acce t of orient Party 6462 6000 ding 2-

Steel Benga ptance Energ ed Agree 0.67 1.18% 0 Yes to the Yes Dec-

2023-

(Grou ng of y and Princi ment agree 23

068

p) Group Servic Power ples Price ment

Co. es

Ltd.Benxi Purch

Iron ase of Procu Marke Relate

& parent Goods remen t- d

Accor

Steel /Acce t of orient Party ding 2-

(Grou comp

2023-

any ptance Energ ed Agree

28.35 0.00% 30 No to the Yes Dec- 068

p) of y and Princi ment agree 23

Co. Servic Power ples Price ment

Ltd. es

Also

belon Purchase of Accep

Anste g to tance

Marke Relate Accor

el Anga

Goods t- d

/Acce of orient Party 210.9 ding 2-ng 2023-Co. ptance Suppo ed Agree 7 0.00% 246 No to the Yes Dec- 068

Ltd. Iron of rtive Princi ment agree 23 and Servic ServicSteel es ples Price

ment

Group es

Anste

el

Group Also belon PurchEngin ase of Accep

eering g to Goods tance

Marke Relate

Anga of t- d

Accor

Techn /Acce orient Party 1610. ding 2- 2023-

ology ng Iron ptance

Suppo 0.03% 3625 No to the Yes Dec-

Devel of rtive

ed Agree 36 068

Princi ment agree 23

opme and ServicSteel Servic es ples Price

ment

nt es

Co. Group

Ltd.Anste Anga

el ng Purch Accep

Group Iron ase of tance Marke Relate Accor

Engin and Goods of t- d

eering Steel /Acce Suppo orient Party 1359 0.25% 1905

ding 2-

No to the Yes Dec- 2023-

Techn Group ptance rtive ed Agree 3.01 8 of Princi ment agree 23

068

ology 's Servic Servic ples Price ment Co. Assoc

Ltd. iate es

es

Anste Also

el belon Purch Accep

Group g to ase of Marke Relate

Zhong Anga Goods

tance t- d Accor

yuan ng /Acce

of

Suppo orient Party 1378.ding 2-

0.03% 2800 No to the Yes Dec- 2023-

Indust Iron ptance rtive ed Agree 87 agree 23 068

rial and of Servic Princi ment

Devel Steel Servic es ples Price

ment

opme Group es

94Bengang Steel Plates Co. Ltd. Annual Report 2024

nt

Co.Ltd.Also

Anste belon Purch Accep

el g to ase of Marke Relate

Group Anga Goods

tance t- d Accor

/Acce of orient Party ding 2-Auto ng ptance Suppo ed Agree 5101 0.09% 5200 No to the Yes Dec-

2023-

matio Iron rtive agree 23 068

n Co. and of Servic Servic

Princi ment

ples Price ment Ltd. Steel

Group es

es

Also Purch

Anste belon Accep

el g to

ase of

Goods tance

Marke Relate Accor

Resou Anga /Acce of

t- d

ng Suppo orient Party

ding 2- 2023-

rces 29.79 0.00% 30 No to the Yes Dec-

Co. Iron

ptance rtive ed Agree agree 23 068

Ltd. and

of Servic Princi ment

Steel Servic es ples Price

ment

Group es

Also

Ansha belon Purch Accep

n Iron g to ase of Marke Relate

and Anga Goods

tance

of t- d

Accor

ding 2-

Steel ng /Acce orient Party 110.3ptance Suppo ed Agree 9 0.00% 122 No to the Yes Dec-

2023-

Group Iron rtive agree 23 068

Co. and of Servic Princi ment ment

Ltd. Steel Servic es ples Price

Group es

Purch

Benxi Parent ase of

Accep

Steel Goods tance

Marke Relate

t- d Accor

Electr Company's /Acce

of

Suppo orient Party 1400.ding 2-

0.03% 1450 No to the Yes Dec- 2023-ical ptance ed Agree 58 068

Co. Assoc of rtive Princi ment agree 23

Ltd. iate Servic Services ples Price

ment

es

Benxi

Steel

Group Purch Accep

Intern Also ase of Marke Relate

ationa belon Goods

tance t- d Accorof

l g to /Acce Suppo orient Party 7973. 8031.ding 2-

0.15% No to the Yes Dec- 2023-

Econo Benga ptance ed Agree 98 50 068

mic & ng of

rtive Princi ment agree 23

Trade Group Servic

Servic ples Price ment es

Co. es

Ltd.Contr Purch

Benxi olling ase of

Accep Marke Relate

Steel shareh Goods

tance t- d Accor

Group older /Acce

of

Suppo orient Party 2189

ding 2-

0.40% 3620 No to the Yes Dec- 2023-

Co. of the ptance rtive ed Agree 9.32 0 parent of Princi ment agree 23

068

Ltd. comp Servic Servic ples Price ment

any es es

Benxi

Beiyi Purch

ng Also ase of Acceptance Marke RelateIron belon Goods Accor

& g to /Acce of

t- d

Suppo orient Party 1380 1400

ding 2- 2023-

Steel Benga ptance rtive ed Agree 5.32

0.25% 0 No to the Yes Dec- 068

(Grou ng of Princi ment agree 23

p) Group Servic Servic ment

Co. es es

ples Price

Ltd.

95Bengang Steel Plates Co. Ltd. Annual Report 2024

Benxi

Iron Also

& belon Purch

Steel g to ase of

Accep Marke Relate

(Grou Anga Goods

tance Accor

/Acce of

t- d

p) ng orient Party 6283 5032

ding 2-

ptance Suppo ed Agree 8.64 1.15% 0.50 Yes to the Yes Dec-

2023-

Guom Iron rtive agree 23 068

ao and of Princi ment

Tengd Steel Servic

Servic

es ples Price

ment

a Co. Group es

Ltd.Benxi

Iron

&

Steel Purch Accep

(Grou The ase of Goods tance

Marke Relate Accor

p) same t- d

Machi parent /Acce

of orient Party 8629. ding 2-

ptance Suppo

2023-

nery comp rtive ed Agree 71

0.16% 7000 Yes to the Yes Dec-

agree 23 068

Manu any of Servic Princi ment ment

facturi Servic ples Price

ng es

es

Co.Ltd.Benxi

Iron Purch

& The ase of

Accep

tance Marke RelateSteel Goods t- d Accor

(Grou same /Acce of orient Party 3620 ding 2-

p) parent ptance Suppo ed Agree 0.26 0.66%

4200

0 No to the Yes Dec-

2023-

068

Const comp of rtive Princi ment agree 23

ructio any Servic Servic ples Price ment

n Co. es es

Ltd.Benxi

Iron Purch Accep

& The ase of Marke Relate

Steel same Goods

tance t- d Accor

/Acce of orient Party ding 2-(Grou parent ptance Suppo

2023-

p) comp rtive ed Agree

0 0.00% 3000 No to the Yes Dec-

of Princi ment agree 23

068

Minin any Servic Servic ples Price ment g Co. es

Ltd. es

Benxi

Iron

& Purch

Steel Accep

(Grou The

ase of tance Marke Relate Accor

p) same

Goods of t- d ding 2-

Equip parent

/Acce Suppo orient Party 1118 4910ptance ed Agree 63.91 2.05% 0 Yes to the Yes Dec-

2023-

ment comp rtive

068

any of Servic Princi ment

agree 23

Engin Servic ples Price ment

eering es es

Co.Ltd.Benxi

Iron

& Purchase of AccepSteel The tance Marke Relate

(Grou same Goods

Accor

/Acce of

t- d ding 2-

p) parent Suppo orient Party 3684.ptance ed Agree 50 0.07% 5000 No to the Yes Dec-

2023-

Indust comp 068

rial any of

rtive

Servic Princi ment

agree 23

Servic ples Price ment Devel es

opme es

nt

96Bengang Steel Plates Co. Ltd. Annual Report 2024

Co.Ltd.Benxi

Iron

& Also

Steel belon Purch Accep

(Grou g to ase of tance Marke Relate Accor

p) Anga Goods of t- d

Infor ng /Acce Suppo orient Party 2017 0.37% 2100

ding 2-

ptance ed Agree 5.41 0 No to the Yes Dec-

2023-

matio Iron rtive agree 23 068

n & and of Servic Princi ment

Auto Steel Servic es ples Price

ment

matio Group es

n Co.Ltd.Benxi Purch

Iron ase of Accep

& Goods tance

Marke Relate

t- d Accor

Steel parent of comp /Acce Suppo orient Party 7932. 1092

ding 2-

(Grou ptance ed Agree 66 0.15% 0 No to the Yes Dec-

2023-

p) any rtive agree 23

068

of Princi ment

Co. Servic Servic ment

Ltd. es es

ples Price

Delin

Landp Also Purch

ort belon ase of Accep

Suppl g to

Marke Relate

Goods tance t- d Accor

y Anga /Acce of ng orient Party 920.1

ding 2-

Chain ptance Suppo ed Agree 2 0.02% 1010 No to the Yes Dec-

2023-

Iron rtive agree 23 068 Servic of Princi ment

es and Steel Servic

Servic ples Price ment

Co. es

Ltd. Group

es

Liaoni

ng Purch Accep

Hengt The ase of tance Marke RelateGoods t- d Accorai same

Heavy parent /Acce

of ding 2-

ptance Suppo

orient Party 2860. 2023-

Machi comp rtive ed Agree 26

0.05% 4080 No to the Yes Dec-

agree 23 068

nery any of Servic Servic

Princi ment

Co. es ples Price

ment

Ltd. es

Liaoni

ng

Hengt

ong Purch

Metall The ase of

Accep Marke Relate

urgica same Goods

tance

of t- d

Accor

l parent /Acce orient Party 1019.ding 2- 2023-

Equip ptance Suppo ed Agree 87 0.02% 2000 No to the Yes Dec- 068

ment comp of rtive agree 23

Manu any

Princi ment

Servic Servic ples Price ment

facturi es es

ng

Co.Ltd.Also

belon Purch Accep

Panga g to ase of Marke Relate

ng Anga Goods

tance t- d Accorof

Group ng /Acce Suppo orient Party 168.5

ding 2-

0.00% 180 No to the Yes Dec- 2023-

Co. Iron ptance of rtive

ed Agree 6 068

Ltd. and Servic Princi ment

agree 23

Servic ples Price ment Steel es

Group es

97Bengang Steel Plates Co. Ltd. Annual Report 2024

Also

Other belon Purch Accep

Subsi g to ase of tance Marke Relate

diarie Anga Goods of t- d

Accor

/Acce orient Party 108.1 ding 2-s of ng ptance Suppo ed Agree 5 0.00% 117 No to the Yes Dec-

2023-

Anste Iron of rtive

068

el and Servic Princi ment

agree 23

ment

Group Steel Servic ples Price

Group es

es

Also

belon Sale of Marke Relate

Anste g to Goods t- d Accor

el Anga /Rend Sale orient Party 1397 1414 ding 2-

Co. ng

2023-

Iron ering

of

Goods ed Agree 9.75

0.27% 0 No to the Yes Dec- 068

Ltd. and of Princi ment

agree 23

ment

Steel Servic ples Price

Group es

Anste Also belon Sale el g to of Marke RelateChem Accor

ical Anga

Goods Sale t- d /Rend orient Party 2550 2560 ding 2- 2023-

Techn ng ering of Iron Goods ed Agree 5.04

0.50% 0 No to the Yes Dec- 068

ology and of Princi ment

agree 23

Co. Servic ples Price ment

Ltd. Steel Group es

Anste Anga

el ng Sale

Group Iron of Marke Relate Accor

Engin and Goods t- d

eering Steel /Rend

Sale orient Party ding 2-of 4.77 0.00% 0 Yes to the Yes Dec- 2023-

Techn Group ering ed Agree 068

ology 's of

Goods Princi ment agree 23 ment

Co. Assoc Servic ples Price

Ltd. iate es

Anste

el Also

Group belon Sale

Intern g to of Marke RelateGoods t- d Accorationa Anga /Rend Sale l ng of orient Party 2283 3000

ding 2- 2023-

Econo Iron ering Goods ed Agree 1.63

0.45% 0 No to the Yes Dec- 068

mic & and of Princi ment

agree 23

ment

Trade Steel Servic ples Price

Co. Group es

Ltd.Anste Also

el belon Sale

Green g to of Marke Relate

Resou Anga Goods Sale t- d

Accor

ding 2-

rces ng /Rend orient Party 4224.ering of 0.08% 1079 Yes to the Yes Dec-

2023-

Techn Iron Goods ed Agree 87 agree 23 068

ology and of Princi ment ment

Co. Steel Servic ples Price

Ltd. Group es

Also

Ansha belon Sale

n Iron g to of Marke RelateGoods t- d Accorand Anga /Rend Sale ding 2-Steel ng ering of

orient Party 2023-

Group Iron Goods ed Agree

13.98 0.00% 20 No to the Yes Dec-

agree 23 068

Co. and of Princi ment Servic ples Price ment Ltd. Steel

Group es

98Bengang Steel Plates Co. Ltd. Annual Report 2024

Sale

Benxi Parent of Marke RelateSteel Goods Accor

Electr Comp /Rend Sale

t- d ding 2-

ical any's ering of

orient Party 2023-

Assoc Goods ed Agree

0.01 0.00% 1 No to the Yes Dec-

Co. of Princi ment agree 23

068

Ltd. iate Servic ples Price ment

es

Contr Sale

Benxi olling of Marke Relate

Steel shareh Goods

Accor

older /Rend Sale

t- d

Group orient Party 282.3

ding 2- 2023-

Co. of the ering

of ed Agree 6 0.01% 1000 No to the Yes Dec- 068

Ltd. parent of

Goods Princi ment agree 23

comp Servic ples Price ment

any es

Benxi

Beiyi Sale

ng Also of Marke Relate

Iron belon Goods Sale t- d

Accor

& g to /Rend of orient Party 3586 5000

ding 2-

Steel Benga ering ed Agree 9.72 0.70% 0 No to the Yes Dec-

2023-

068

(Grou ng of Goods Princi ment agree 23

p) Group Servic ples Price ment

Co. es

Ltd.Benxi

Iron

&

Steel Sale

(Grou The of Marke RelateGoods t- d Accorp) same Sale ding 2-

Machi parent /Rend orient Party 1880. 2023-

nery comp ering

of ed Agree 97 0.04% 1350 Yes to the Yes Dec-Goods agree 23 068

Manu any of Princi ment ment

facturi Servic ples Price

ng es

Co.Ltd.Benxi

Iron Sale

& The of Marke RelateSteel Accor

(Grou same

Goods Sale t- d /Rend orient Party 228.1 ding 2-parent 2023-p) comp ering

of ed Agree 6 0.00% 500 No to the Yes Dec- 068

Const Goods any of Princi ment

agree 23

ructio Servic ples Price ment

n Co. es

Ltd.Benxi

Iron Sale

& The of Marke RelateGoods t- d AccorSteel same Sale ding 2-

(Grou parent /Rendering of

orient Party 5724. 8370 2023-

p) comp Goods ed Agree 74

0.11% 0 No to the Yes Dec- 068

Minin any of Princi ment

agree 23

Servic ples Price ment g Co.Ltd. es

Benxi

Iron Sale

& The of Marke Relate

Steel same Goods

Accor

Sale t- d

(Grou parent /Rend of orient Party 1560.ding 2-

ering ed Agree 34 0.03% 3000 No to the Yes Dec-

2023-

p) comp Goods agree 23 068

Equip any of Princi ment

ment Servic ples Price

ment

Engin es

99Bengang Steel Plates Co. Ltd. Annual Report 2024

eering

Co.Ltd.Benxi

Iron

&

Steel Sale

(Grou The of Marke Relate Accor

p) same Goods/Rend Sale

t- d

Indust parent of orient Party 1461 1809

ding 2-

0.29% No to the Yes Dec- 2023-

rial comp ering Goods ed Agree 4.28 4 agree 23 068

Devel any of Princi ment

opme Servic ples Price

ment

nt es

Co.Ltd.Benxi

Iron

& Also

Steel belon Sale

(Grou g to of Marke Relate

p) Anga Goods

Accor

Sale t- d ding 2-

Infor ng /Rend of orient Party 48.89 0.00% 50 No to the Yes Dec- 2023-

matio Iron ering of Goods

ed Agree 068

n & and Princi ment

agree 23

ment

Auto Steel Servic ples Price

matio Group es

n Co.Ltd.Benxi Sale

Iron of Marke Relate

& parent Goods t- d

Accor

Steel comp /Rend

Sale

of orient Party 1040

ding 2-

0.20% 1605 No to the Yes Dec- 2023-(Grou any ering Goods ed Agree 2.02 5 068 p) of Princi ment agree 23

Co. Servic ples Price ment

Ltd. es

Delin

Landp Also Sale

ort belong to of Marke RelateSuppl Accor

y Anga

Goods Sale t- d

ng /Rend of orient Party 3147

ding 2-

Chain ering ed Agree 39.50 6.14%

30662023-

Iron Goods 10

Yes to the Yes Dec-

Servic of Princi ment agree 23

068

es and Steel Servic ples Price

ment

Co.Ltd. Group

es

Also

Other belon Sale

Subsi g to of Marke Relate Accor

diarie Anga Goods t- d

s of ng /Rend

Sale orient Party 4837. ding 2-

ering of ed Agree 53 0.09% 5801 No to the Yes Dec-

2023-

Anste Iron of Goods Princi ment agree 23

068

el and ment

Group Steel Servic ples Price

Group es

Benxi

Iron Sale

& The of Provis Marke Relate Accor

Steel same Goods ion of t- d ding 2-

(Grou parent /Rend Suppo orient Party 735.8 0.01% 1000 No to the Yes Dec- 2023-

p) comp ering rtive ed Agree 5 0 agree 23 068

Minin any of Servic Princi ment ment

g Co. Servic es ples Price

Ltd. es

Total -- -- 2980 -- 3510 -- -- -- -- --

100Bengang Steel Plates Co. Ltd. Annual Report 2024

874.8000

6

Details of any sales return of

a large amount No applicable

Actual performance of the

estimated total amount of daily

related transactions to occur in the No applicable

current period during the reporting

period by category (if any)

Reason for any significant

difference between the

transaction price and the No applicable

Market price for reference (if

applicable)

2. Related party transactions relevant to asset acquisition or sold

?Applicable □Not applicable

Book Appraisal

Type of Value Value Transa Gain/L

Related Relatio Related Transa Pricing

of oss on Disclos

-Party ction Princip Transfe

of ction Settlem Disclos

Party nship rred Transfe Price ent

Transa ure ure

Transa Details le Assets rred (RMB Method

ction Date Refere

ction Assets 10000) (RMB nce (RMB 10000)

10000) (RMB 10000)

The

transact

ion Announ

price cement

was on the

determi Acquisi

ned

based tion of

on the Equity

Acquisi apprais in

tion of ed Norther

Parent 100% value n

Benxi Compa equity of Hengda

Steel ny’s Equity in 100% Decem

Group Control Transa Norther equity 16966. 19661. 19661. LogistiCash 0 ber 24

Co. ling ction n of the 19 95 95 cs Co. 2024

Ltd. Shareh Hengda target Ltd.older Logisti compa and

cs Co. ny as Related

Ltd. of the Transac

valuati tions

on

referen (Annou

ce date ncemen

mutuall t No.y 2024-

agreed 073)

by both

parties.Reason for Significant Variance Between None

101Bengang Steel Plates Co. Ltd. Annual Report 2024

Transaction Price and Book/Appraisal

Value (if applicable)

Impact on Operating Results and

It helps reduce related-party transactions and enhance the Company's profitability.Financial Position

Performance Commitment Fulfillment

During the Reporting Period (if None

applicable)

3. Related party transactions relevant to joint investments

□ Applicable √ Not applicable

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

4. Credits and liabilities with related parties

□ Applicable √ Not applicable

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

5. Transactions with related financial companies

√ Applicable □ Not applicable

Deposit business

Current period

Maximum Total

Relationshi Deposit Beginning

Total deposit

withdrawal Ending daily deposit

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

range thousand) the current

thousand) this period

thousand)

period (10

(10

thousand)

thousand)

Angang

Group Also belong 1.35%- 11119016.6 11036925.5

45000040628.8122719.88

Finance Co. to Ansteel 2.25% 6 8

Ltd.Credit or other financial services

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

Angang Group Finance

Also belong to Ansteel Other financial services 59150.75 59150.75

Co. Ltd.

6. Transactions between the financial company controlled by the company and its related parties

□ Applicable √ Not applicable

There were no deposits loans credit or other financial businesses between the financial company controlled by the

company and its related parties.

7. Other significant related transactions

□ Applicable √ Not applicable

There were no other significant related transactions during the reporting period.

102Bengang Steel Plates Co. Ltd. Annual Report 2024

XV. Significant Contracts and Their Performance

1. Trusteeship Contracting and Lease Arrangements

(1) Trusteeship

? Applicable ? Not Applicable

During the reporting period the Company had no trusteeship arrangements.

(2) Contracting

? Applicable ? Not Applicable

During the reporting period the Company had no contracting arrangements.

(3) Leasing

? Applicable ? Not Applicable

Details of leasing

The Company as Lessor:

Lessee Name Type of Leased Assets Lease Income Recognized Lease Income Recognized in Current Period (RMB) in Prior Period (RMB)

Benxi Iron and Steel (Group) Factory buildings and ancillary

Equipment Engineering Co. Ltd. equipment 108980.00 217960.00

Benxi Iron and Steel (Group) Factory buildings and ancillary

Machinery Manufacturing Co. Ltd. equipment 670802.00

Benxi Steel Group International Factory buildings and ancillary

Trade Co. Ltd. equipment 1957007.77

The Company as Lessee

Current period Previous period

Variab

le

Renta lease

l fees payme Rental

Variable

lease

for nts not fees for payments

Name Type of leased short- includ

Interest Increa short- not Interest

of assets term ed in

expense on sed term Rent paid lease leases included expense on

Increase

lessor lease the liabilities access and in the

Rent paid lease liabilities d access

s and measur assets measure assumed assets

low- ement assumed low-value ment of value of

assets lease assets

lease

liabilities

liabiliti

es

Benxi

Iron Land use right

and 7669068.17

Steel square meters

(Group land use right

55277544.1237677819.0655277544.1239000108.00

) Co. 42920.00

Ltd square meters

Benxi

Iron 2300 hot

and rolling mill

Steel production 16098161.04 6968900.84 16098161.05 7740688.68

(Group line related

) Co. real estate

103Bengang Steel Plates Co. Ltd. Annual Report 2024

Ltd.Benxi

Beiyin

g Iron 1780 hot

and rolling mill

Steel production 14351637.72 5367055.84 14351637.72 5961443.40

(Group line related

) Co. property

Ltd.Ben

Steel Land use right

Group is 728282.30 9945423.12 1757731.16 9945423.12 2449918.80

Co. square meters

Ltd

Anstee

l

Group

Energy

Saving machinery 25512

Techn equipment 7418960.00 6474538.06 8489.ology 65

Servic

e Co.Ltd.Items with Profit/Loss Impact Exceeding 10% of the Company’s Total Profit for the Reporting Period

? Applicable ? Not Applicable

During the reporting period there were no lease arrangements that generated profit/loss exceeding 10% of the Company’s total

profit.

2. Significant Guarantees

? Applicable ? Not Applicable

During the reporting period there were no significant guarantees provided by the Company.

3. Entrusted Cash Asset Management

(1) Entrusted Wealth Management

? Applicable ? Not Applicable

During the reporting period the Company did not engage in entrusted wealth management.

(2) Entrusted Loans

? Applicable ? Not Applicable

During the reporting period the Company did not engage in entrusted loans.

4. Other Significant Contracts

? Applicable ? Not Applicable

During the reporting period there were no other significant contracts.XVI. Other Major Events

? Applicable ? Not Applicable

104Bengang Steel Plates Co. Ltd. Annual Report 2024

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

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

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

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

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

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

deliberation.XVII. Major Events of Subsidiaries

? Applicable ? Not Applicable

On December 23 2024 the Company held the 31st meeting of the Ninth Board of Directors and approved the Proposal on Acquiring

Equity of North Hengda Logistics Co. Ltd. agreeing to acquire 100% equity of North Hengda Logistics Co. Ltd. held by Bengang

Group Co. Ltd. in cash. Upon completion of the transaction Hengda Logistics became a wholly-owned subsidiary of the Company

and was included in the consolidated financial statements. The industrial and commercial registration changes were completed on

December 25 2024. For details refer to the Announcement on Acquiring Equity of North Hengda Logistics Co. Ltd. and Related-

Party Transaction (Announcement No.: 2024-073) and the Announcement on Progress of Equity Acquisition and Completion of

Industrial and Commercial Registration Changes (Announcement No.: 2024-076) published by the Company on designated information

disclosure platforms.

105Bengang Steel Plates Co. Ltd. Annual Report 2024

VII. Status of Share Capital Changes and Shareholders

I. Share Capital Changes

1. Share capital changes

Unit: Share

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

ation of

Percenta Issuing of Bonus Percenta

Quantity common Others Subtotal Quantity

ge new share shares ge

reserve

fund

I. Restricted Shares

2. State-own Legal-person

Shareholding

3. Other domestic

shareholdings

Including: Domestic legal

person holding

Domestic

person holding

4. Foreign Shareholding

Including: Foreign legal

person holding

Foreign person

holding

II. Non-restricted Shares 4108219302 100.00% 8855 8855 4108228157 100.00%

1. Common shares in

370821930290.26%88558855370822815790.26%

RMB

2. Foreign shares in

4000000009.74%4000000009.74%

domestic market

3. Foreign shares in

oversea market

4.Others

III. Total shares 41082194108219302 100.00% 8855 8855 4108228157

302

Reason of share capital changes

√Applicable □Not applicable

During the reporting period 350 convertible bonds were converted into shares and the company's total

106Bengang Steel Plates Co. Ltd. Annual Report 2024

share capital increased by 8855 shares.Approval of share capital changes

□ Applicable √ Not applicable

Status of registration process of transferred shares

□ Applicable √ Not applicable

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

per share and net asset per share attributed to common shareholders

□ Applicable √ Not applicable

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

□ Applicable √ Not applicable

2. Changes of Restricted Shares

□Applicable √Not applicable

II. Securities Issuance and Listing

1. Status of Security Issuance (Excluding Preferred Shares) in the Reporting Period

□Applicable √Not applicable

2. Total Share and Shareholder Change and Asset and Liability Structure Change

□Applicable √Not applicable

3. Employee Shareholding Status

□Applicable √Not applicable

III. Shareholders and Actual Controller

1. Total Number of shareholders and shareholding

In Shares

Total number of Total number Total number of Total number of

common of common preferred preferred

shareholders at the 45628 shareholders 47914 shareholders whose 0 shareholders 0

end of the at the end of voting rights were whose voting

reporting period the month restored at the end of rights were

107Bengang Steel Plates Co. Ltd. Annual Report 2024

before the the reporting period restored at the end

annual report (if any) (see Note 8) of the month

disclosure before the annual

date report disclosure

date (if any) (see

Note 8)

Shareholding of shareholders holding more than 5% or top 10 shareholders(Excluding shares lent through

refinancing)

Holding Number of Changes in Restricted Un- Number of pledged

Name of the Nature of

Percenta shares held at reporting shares restricted or frozen shares

shareholder shareholder

ge period-end period held shares held Status Number

Benxi Steel & Iron State-owned Frozen 102100000

58.65%2409628094002409628094

(Group) Co. Ltd. legal person

Not

Bengang Group State-owned

17.95% 737371532 0 0 737371532 applica 0

Co. Ltd. legal person

ble

Guan Hui Not Domestic

0.69% 28213600 -516400 0 28213600 applica 0

natural person

ble

Zhang Wenyou Not Domestic

0.44% 18162365 -987602 0 18162365 applica 0

natural person

ble

Gao Tao Not Domestic

0.38% 15500000 -8250000 0 15500000 applica 0

natural person

ble

Lyu Ruijun Not Domestic

0.29% 12011440 12011440 0 12011440 applica 0

natural person

ble

China Merchants Not

Securities (HK) Foreign legal 0.29% 11768807 11768807 0 11768807 applica 0 Co. Ltd. person ble

Hong Kong Not

Foreign legal

Securities Clearing 0.26% 10881390 -3347359 0 10881390 applica 0

person

Company Limited ble

Ma Yonghua Not Domestic

0.24% 10022457 10022457 0 10022457 applica 0

natural person

ble

Zhou Wei Not Domestic

0.22% 8995300 -1000 0 8995300 applica 0

natural person

ble

Strategy investors or general legal

None

person becomes top 10

108Bengang Steel Plates Co. Ltd. Annual Report 2024

shareholders due to rights issued

(if any) (See Notes 3)

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

Notes to relationship or ‘action in Co. Ltd. and is a concerted action person stipulated in the "Administrative Measures for the

concert’ among the top 10 Acquisition of Listed Companies". It is unknown to the Company whether there is any related

shareholders. connection or ‘Action in Concert’ as described by Rules of Information Disclosing Regarding

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

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

shareholders' entrusted/entrusted voting

abstention of voting rights.rights and waiver of voting rights

Special instructions for the existence of

special repurchase accounts among the

None

top 10 shareholders (if any) (see Note

10)

Shareholding of top 10 unrestricted shareholders (Excluding shares lent through refinancing and shares locked by

senior executives)

Un-restricted shares held Category of shares

Name of the shareholder at the end of the reporting

Category of shares Quantity

period

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

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

Guan Hui 28213600 Common shares in RMB 28213600

Zhang Wenyou 18162365 Common shares in RMB 18162365

Gao Tao 15500000 Foreign shares in domestic exchange 15500000

Lyu Ruijun 12011440 Foreign shares in domestic exchange 12011440

China Merchants Securities (HK) Co.Ltd. 11768807 Foreign shares in domestic exchange 11768807

Hong Kong Securities Clearing Company

10881390 Common shares in RMB 10881390

Limited

Ma Yonghua 10022457 Foreign shares in domestic exchange 10022457

Zhou Wei 8995300 Common shares in RMB 8995300

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

Notes to relationship or ‘action in

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

concert’ among the top 10 non-restricted

Measures for the Acquisition of Listed Companies". It is unknown to the Company

shareholders and among the top 10 non-

whether there is any related connection or ‘Action in Concert’ as described by Rules of

restricted shareholders and top 10

Information Disclosing Regarding Changing of Shareholding Status of Listed Companies

shareholders

existing among the above shareholders.Guan Hui holds 213600 shares of the Company's stock through an investor general

Shareholders among the top 10 account and 28000000 shares of the Company's stock through an investor credit

participating in securities margin trading securities account. Zhang Wenyou holds 105998 shares of the Company's stock through

(if any) (see Note 4) an investor credit securities account 18056367 shares of the Company's stock through

an investor credit securities account. Zhou Wei holds 163500 shares of the Company's

109Bengang Steel Plates Co. Ltd. Annual Report 2024

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

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

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

shares

□ Applicable √ Not Applicable

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

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

□ Applicable √ Not Applicable

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

back agreement dealing in reporting period

□ Yes √ No

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

agreement dealing in reporting period.

2. Information of the Company's controlling shareholder

Nature of Controlling Shareholder: Central State-owned Holdings

Type of Controlling Shareholder: Legal person

Name of the Legal

Date of Organization

Controlling representative / Principal business activities

incorporation Code

shareholder person in charge

Steel and iron smelting steel rolling processing

metal material manufacturing ferroalloy smelting

heat production and supply metal cutting

processing services general equipment

manufacturing (excluding special equipment

manufacturing) import and export of goods

office services building materials sales refractory

materials sales refractory materials production

instrumentation manufacturing natural science

Benxi Steel & research and experimental development

91210500119

Iron (Group) Li Naiming July 101996 professional design services industrial design

726263U

Co. Ltd. services information consulting services

(excluding licensed information consulting

services) property management productive scrap

metal recycling renewable resource recycling

(except productive scrap metal) renewable

resource processing renewable resource sales

non-residential real estate leasing housing

leasing asset management services for self-owned

capital investment advertising production

advertising design agency advertising

110Bengang Steel Plates Co. Ltd. Annual Report 2024

publication (except for projects that must be

approved according to law business activities are

carried out independently in accordance with the

law with a business license)

Equity details

of other

domestic and

overseas listed

companies

controlled or None

invested by the

controlling

shareholder

during the

reporting period

Changes of controlling shareholders during the reporting period

□ Applicable √ Not applicable

The controlling shareholder of the company has not changed during the reporting period.

3. The actual controller and its persons acting in concert

Nature of actual controller: Central state-owned assets management agency

Type of actual controller: Legal person

Legal

Date of Principal business

Name of the controlling shareholder representative Organization Code

incorporation activities

/ person in charge

Steel iron vanadium

titanium stainless

steel special steel

production and

manufacturing non-

ferrous metal

production and

manufacturing steel

rolling processing

91210000558190456

Ansteel Group Co. Ltd Tan Chengxu July 28 2010 iron vanadium

G

titanium and other

non-ferrous metals

non-metallic mineral

mining and

comprehensive

utilization mining

auxiliary industries

clean energy power

generation coal and

111Bengang Steel Plates Co. Ltd. Annual Report 2024

coal products sales

chemical products

and gases (excluding

hazardous

chemicals) refractory

materials production

and sales industrial

and mining

engineering

metallurgical

engineering

construction

engineering

technology services

equipment

manufacturing

Internet of Things

information services

energy conservation

environmental

protection technology

services new

material research and

development

renewable resources

development

mechanical

processing

technology

development

transfer and services

transportation

services real estate

development urban

energy supply

software and

information

technology services

intelligent

manufacturing and

services domestic

and international

trade financial

management

112Bengang Steel Plates Co. Ltd. Annual Report 2024

tendering and bidding

services medical and

health care services

vocational skills

training economic

information

consulting services

enterprise

management hotel

and catering services

operation of other

state-owned assets

and investments

within the scope

authorized by the

State-owned Assets

Supervision and

Administration

Commission of the

State Council; the

following are limited

to branch operations:

newspaper

distribution

publication printing

packaging decoration

and other printing

products printing.(Projects that require

approval by law must

obtain approval from

relevant departments

before engaging in

business activities.)

Equity details of other domestic and During the reporting period Ansteel Group Co. Ltd indirectly held 53.46%

overseas listed companies controlled by of the shares of Angang Steel Company Limited directly and indirectly held

the actual controller during the 49.67% of the shares of Vanadium & Titanium Company Limited and

reporting period indirectly held 36.97% of the shares of Linggang Co. Ltd.Change of actual controller during the reporting period

□ Applicable √ Not applicable

There is no change of actual controller during the reporting period.Block diagram of the ownership and control relations between the Company and the actual

controller

113Bengang Steel Plates Co. Ltd. Annual Report 2024

Liaoning Provincial State- Liaoning Dongfang

Liaoning Social Ansteel Liaoning Huida

owned Assets Supervision Fushun New Anrong Investment

Security Fund Group

and Administration Enterprise

Council Co. Ltd. Steel Co. Ltd. Management Partnership

Commission Management Co. Ltd.(Limited Partnership)

10%20.4%51%9%5%4.6%

Bengang Group Co. Ltd.

100%

Benxi Steel & Iron (Group) Co. Ltd.

58.65%17.95%

Bengang Steel Plates Co. Ltd.Whether the actual controller is controlling the Company through trusteeship or other asset

management service

□ Applicable √ Not applicable

4. The total number of shares pledged by the company's controlling shareholder or largest

shareholder and its persons acting in concert accounts for 80% of the total number of shares held

by them

□ Applicable √ Not applicable

5. Shareholders holding More than 10% of the Shares

□ Applicable √ Not applicable

6. Status of Share Reduction Limitation of Controlling Shareholders Actual Controller

Restructuring Party and Other Commitment Subjects

□ Applicable √ Not applicable

IV. Specific implementation of share repurchases during the reporting period

Progress of share repurchase implementation

□ Applicable √Not applicable

Progress of the implementation of share repurchase through centralized bidding transactions

□ Applicable √ Not applicable

114Bengang Steel Plates Co. Ltd. Annual Report 2024

VIII. Status of Preferred Shares

□ Applicable √ Not applicable

The company had no preferred shares during the reporting period.

115Bengang Steel Plates Co. Ltd. Annual Report 2024

IX. Status of Bonds

√ Applicable □ Not applicable

I. Enterprise bonds

□ Applicable √ Not applicable

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

□ Applicable √ Not applicable

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

□ Applicable √ Not applicable

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

instruments.IV. Convertible corporate bonds

√ Applicable □ Not applicable

1. Previous adjustments to the conversion price

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

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

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

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

"Bengang Convertible Bonds" was adjusted to RMB 4.55 per share on October13 2021.

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

Convertible Bonds" was adjusted to RMB 3.95 per share on June 16 2022.

2. Cumulative share conversion

√ Applicable □ Not applicable

116Bengang Steel Plates Co. Ltd. Annual Report 2024

Proportion

Cumulati

Cumulativ Proportion Amount of

Start date Total ve

Name of Total issue e of converted of shares unconverted

and end issue conversio

Convertible amount conversio shares to the not amount to

date of quantity n

Bond (Yuan) n amount total issue converted the total

conversion (sheet) quantity(

(Yuan) quantity (Yuan) issue

shares)

amount

Bengang 4th Jan

6800006800000011690149232856656309851

Convertible 2021 – 28th 6.01% 82.81%

0000.0000.002500.00

Bond Jun 2026

3. The top ten holders of convertible bonds

Number of Percentage

convertible Amount of of

Nature of bonds held convertible bonds convertible

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

holders the reporting the reporting the end of

period period (yuan) the reporting

(sheets) period

State-owned

1 Soochow Securities Co. Ltd. 3317717 331771700.00 5.89%

Legal Person

China Merchants Bank Co. Ltd -

2 Bosera CSI Convertible Bond & Others 2456530 245653000.00 4.36%

Exchangeable Bond Index ETF

E Fund Peace of Mind Fixed Income

3 Pension Product－China Construction Others 2444591 244459100.00 4.34%

Bank Corporation

Industrial and Commercial Bank of

4 China Limited - Bosera Credit Bond Others 1900011 190001100.00 3.37%

Fund

Domestic non

5 Pacific Securities Co. State-owned 1689676 168967600.00 3.00%

legal person

Deji Capital Management Company - Foreign Legal

61486793148679300.002.64%

DK MS FPI (Cayman) Ltd. - QFII Person

China Guangfa Bank Co. Ltd. – GS

Funds Anji Pure bond half-yearly open

7 Others 1334982 133498200.00 2.37%

bond-type initiated securities

investment fund

National Social Security Fund Portfolio

8 Others 1043578 104357800.00 1.85%

207

117Bengang Steel Plates Co. Ltd. Annual Report 2024

China Asset Management's Longevity

9 No. 9 Fixed Income Pension Product－ Others 968118 96811800.00 1.72%

China Merchants Bank Co. Ltd.Industrial and Commercial Bank of

10 China Limited – Huashang Convertible Others 886040 88604000.00 1.57%

Bond Securities Investment Fund

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

□ Applicable √ Not applicable

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

arrangements for debt repayment in future years

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

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

changed.V. The loss of the consolidated financial statements during the reporting period exceeds 10%

of the net assets at the end of the previous year

√ Applicable □ Not applicable

The impact on the company's

Reasons for the

Items Losses production and operation and losses

debt repayment capacity

The parent company's net

profit in 2024 was -

5188686716.67 yuan which

was 10% higher than the net

assets in the audited

Parent company of Bengang Net profit in 2024 RMB -

Operational loss consolidated balance sheet of

Steel Plates Co. Ltd. 5188686716.67

the previous year affecting

the increase in the audited

consolidated net loss in this

period and the increase in the

debt-to-asset ratio.VI. The situation of overdue interest-bearing debts excluding bonds at the end of the reporting

period

□ Applicable √ Not applicable

118Bengang Steel Plates Co. Ltd. Annual Report 2024

VII. Any violation of rules and regulations during the reporting period

□ Applicable √ Not applicable

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

of the end of the reporting period

Unit: 10 thousand yuan

Changes over ending

Item 31 Dec 2024 31 Dec 2023

balance of last year

Current ratio 0.52 0.70 -25.71%

Debt-to-asset ratio 72.72% 61.74% 10.98%

Quick ratio 0.18 0.27 -33.33%

Changes over previous

Current period Previous period

period

Net profit after deducting

non-recurring gains and -522160.18 -206205.58 -153.22%

losses

EBITDA total debt ratio -7.76% 3.10% -10.86%

Interest Coverage ratio -9.33 -2.37 -293.67%

Cash Interest Coverage ratio -1.74 9.11 -119.10%

EBITDA Interest Coverage

-5.741.20-578.33%

ratio

Loan repayment rate 100.00% 100.00% 0.00%

Interest repayment rate 100.00% 100.00% 0.00%

119Bengang Steel Plates Co. Ltd. Annual Report 2024

X. Financial Report

1. Auditor’s report

Opinion of audit report Unqualified opinion

Date of audit report 2th April 2025

Name of CPA Firm BDO China Shu Lun Pan CPAs LLP

Audit report number PCPAR [2025] No.ZG10828

Name of CPA Wang Hongna Fu Yangyi

Auditors’ Report

PCPAR [2025] No. ZG10828

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 2024 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

2024 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 and we have fulfilled our other ethical responsibilities in

accordance with China Code of Ethics for Certified Public Accountants. We believe that

the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

opinion.Key Audit Matters

120Bengang Steel Plates Co. Ltd. Annual Report 2024

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 performedSignificant accounting policies and are as follows:accounting estimates” and Note (30) (1) Understand and test the key internalunder “5. Notes to consolidated financial controls related to revenue and evaluatestatements”. whether the relevant controls are

appropriate and effectively implemented;

In 2024 the amount of operating income (2) We performed analytical procedures on

recognized in the consolidated financial revenue including comparison of the gross

statements is RMB 51266.36 million. profit of the current period of revenue of

Since revenue is a key performance major products with that of the previous

indicator of the Company the management period analysis of revenue fluctuations

of the Company may have a significant and checking whether there are any

risk of misstatement in revenue abnormalities;

recognition. Therefore we consider (3) Obtain the sales details of the current

revenue recognition as a key audit matter. 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

121Bengang Steel Plates Co. Ltd. Annual Report 2024

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

disclosed in the financial statements.

2. Impairment of InventoryPlease refer to the Note （11）under “3. The main audit procedures we performedSignificant accounting policies and are as follows:accounting estimates” and Note (7) (1) Evaluated the design and operation ofunder “5. Notes to consolidated financial internal control related to the impairmentstatements”. of inventory;

(2) Supervise stocktaking and check the

As at December 312024 the carrying quantity and status of inventory especially

amount of inventory in consolidated the aged inventory;

statement is RMB 7638.56 million (3) Obtain the calculation table of the

impairment of inventory is RMB 305.47 impairment of inventory. Check whether it

million the book value of inventory is follows the requirements of related

RMB 7333.08 million. Inventory is accounting standards of the Company

measured at the lower of cost and net check the changes in the inventory

realizable value. The sufficiency of impairment provision made in previous

impairment for inventory will exert a great years etc. and analyze whether the

impact on the financial statement. inventory impairment provision is

sufficient;

The net realizable value of finished goods (4) Implement net realizable value testing

122Bengang Steel Plates Co. Ltd. Annual Report 2024

is determined by deducting the estimated of inventories and review the method of

selling expenses and related taxes from the making provisions for inventory

estimated selling price. impairment and test 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 2024 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 2024

but excludes the financial statements and our auditor's report.Our opinion on the financial statements does not cover the other information and we do

not and will not express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the

other information identified above and in doing so consider whether the other information

is materially inconsistent with the financial statements or our knowledge obtained in the

audit if there appears to be a material misstatement.Based on the work we have performed if we determine that there is a material

misstatement of other information we should report that fact. In this regard we have

nothing to report.Responsibilities of Management and Those Charged with Governance for the Financial

Statements

Management is responsible for the preparation and fair presentation of the financial

statements in accordance with requirements of Accounting Standards for Business

Enterprises and for such internal control as management determines is necessary to enable

the preparation of financial statements that are free from material misstatement whether

due to fraud or error.In preparing the financial statements management of the Company is responsible for

assessing the Company's ability to continue as a going concern disclosing as applicable

123Bengang Steel Plates Co. Ltd. Annual Report 2024

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.

(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 Bengang Steel Plates 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 Bengang Steel Plates 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

124Bengang Steel Plates Co. Ltd. Annual Report 2024

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 2025

This auditor’s report and the accompanying notes to the financial statement are English translation of the

Chinese auditors’ report. In case of doubt as to the presentation of these documents the Chinese version shall

prevail.

2. Financial statements

125Bengang Steel Plates Co. Ltd. Annual Report 2024

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

As at 31 December 2024

(Expressed in Renminbi unless otherwise indicated)

Assets Notes 5 Dec 31 2024 Dec 31 2023

Current assets

Cash at bank and on hand (1) 2453888470.48 2210057475.05

Settlement provisions

Capital lent

Financial assets held for trading

Derivative financial assets

Notes receivable (2) 607279481.42 454407444.02

Accounts receivable (3) 501484081.73 1329347134.49

Accounts receivable financing (4) 64399942.70 806822622.43

Prepayments (5) 391823135.87 677140188.41

Premium receivable

Reinsurance accounts receivable

Receivable deposit for reinsurance contract

Other receivables (6) 149015138.26 318832784.47

Redemptory financial assets for sale

Inventories (7) 7333084694.27 7769551774.44

Including: data assets

Contract assets

Assets held for sale

Non-current assets due within one year

Other current assets (8) 437081260.66 157789976.90

Total current assets 11938056205.39 13723949400.21

Non-current assets

Loan and advances issued

Debt Investments

Other debt investments

Long-term receivables

Long-term equity investments (9) 45413221.72 46910346.41

Other equity instrument investments (10) 933426254.63 974463039.83

Other non-current financial assets

Investment property

Fixed assets (11) 26426320453.57 25174210887.76

Construction in progress (12) 3934442501.50 4308404147.31

Productive biological assets

Oil and gas assets

Right-of-use assets (13) 1685925710.14 1319616179.37

Intangible assets (14) 394780068.68 363818317.13

Including: data assets

Development expenditure

Including: data assets

Goodwill

Long-term deferred expenses

Deferred tax assets (15) 371234449.79 467040631.42

Other non-current assets (16) 86297275.16 139318979.61

Total non-current assets 33877839935.19 32793782528.84

Total assets 45815896140.58 46517731929.05

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

126Bengang Steel Plates Co. Ltd. Annual Report 2024

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

As at 31 December 2024

(Expressed in Renminbi unless otherwise indicated)

Liabilities and equities Notes 5 Dec 312024 Dec 31 2023

Current Liabilities

Short-term loans (18) 371055490.50 328000000.00

Loan from central bank

Loan from other banks

Financial liability held for trading

Derivative financial liabilities

Notes payable (19) 12982703669.86 10370940819.87

Accounts payable (20) 2761759439.36 2809289562.55

Advance from customers (21) 59327.21 143119.29

Contract liabilities (22) 2908598425.73 3318451501.35

Financial assets sold for repurchase

Deposits from customers and interbank

Receipt from vicariously traded securities

Receipt from vicariously underwriting securities

Employee benefits payable (23) 1773068.35 1326522.66

Current tax liabilities (24) 54070097.83 57639085.30

Other payables (25) 2354694200.01 1727079607.48

Handling charges and commission payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within one year (26) 1030502916.66 685881691.76

Other current liabilities (27) 328981058.74 399791720.50

Total current liabilities 22794197694.25 19698543630.76

Non-current liabilities

Provision for insurance contract

Long-term loans (28) 2891941462.40 1723726700.80

Bonds payable (29) 5569899459.53 5451381676.38

Including: Preferred stock

Perpetual bond

Lease liabilities (30) 1633911586.51 1342427252.45

Long-term payables

Long-term employee benefits payable

Estimated liabilities

Deferred income (31) 173919087.47 174142383.18

Deferred tax liabilities (15) 252893530.26 329914385.19

Other non-current liabilities

Total non-current liabilities 10522565126.17 9021592398.00

Total liabilities 33316762820.42 28720136028.76

Shareholders' equity:

Share capital (32) 4108228157.00 4108219302.00

Other equity instruments (33) 947850195.03 947858134.16

Including: Preferred stock

Perpetual bond

Capital reserves (34) 13225632166.95 13422225870.92

Less: treasury shares

Other comprehensive income (35) -93407196.62 -50371341.88

Special reserves (36) 809649.65 163055.04

Surplus reserves (37) 1195116522.37 1195116522.37

General risk reserve

Undistributed profits (38) -7497011632.90 -2414685928.92

Total equity attributable to equity holders of the parent company 11887217861.48 17208525613.69

Non-controlling interests 611915458.68 589070286.60

Total shareholder's equity 12499133320.16 17797595900.29

Total of liabilities and owners’ equity 45815896140.58 46517731929.05

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

127Bengang Steel Plates Co. Ltd. Annual Report 2024

BENGANG STEEL PLATES CO. LTD.STATEMENT OF FINANCIAL POSITION

As at 31 December 2024

(Expressed in Renminbi unless otherwise indicated)

Assets Notes 15 Dec 31 2024 Dec 31 2023

Current assets

Cash at bank and on hand 1928597252.93 2084382077.60

Financial assets held for trading

Derivative financial assets

Notes receivable 879167997.23 613514613.02

Accounts receivable (1) 899413301.62 1243326802.56

Accounts receivable financing 67033501.52 693239068.68

Prepayments 552668067.77 664669952.97

Other receivables (2) 399809663.60 604535173.18

Inventories 6510049399.94 6726641809.04

Including: data assets

Contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 401232007.64 82661697.57

Total current assets 11637971192.25 12712971194.62

Non-current assets

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments (3) 2437356681.15 2269191936.65

Other equity instrument investments 933426254.63 974463039.83

Other non-current financial assets

Investment property

Fixed assets 25361023150.98 24052882215.31

Construction in progress 3813480844.57 4275801115.73

Productive biological assets

Oil and gas assets

Right-of-use assets 1685925710.14 1319616179.37

Intangible assets 206105870.50 170176158.95

Including: data assets

Development expenditure

Including: data assets

Goodwill

Long-term deferred expenses

Deferred tax assets 370213799.88 465645459.77

Other non-current assets 85556957.68 131159433.56

Total non-current assets 34893089269.53 33658935539.17

Total assets 46531060461.78 46371906733.79

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

128Bengang Steel Plates Co. Ltd. Annual Report 2024

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

As at 31 December 2024

(Expressed in Renminbi unless otherwise indicated)

Liabilities and shareholders' equities Notes 15 Dec 31 2024 Dec 31 2023

Current liabilities

Short-term loans 371055490.50 328000000.00

Financial liability held for trading

Derivative financial liabilities

Notes payable 11915812506.01 10361392779.12

Accounts payable 2881087998.48 3190842780.56

Prepayments

Contract liabilities 6637545634.05 4903008138.37

Employee benefits payable 354432.32

Current tax liabilities 28685832.43 30105183.40

Other payables 2206387975.74 1656804114.53

Liabilities held for sale

Non-current liabilities due within one year 1030502916.66 685881691.76

Other current liabilities 61868166.75 79447326.71

Total current liabilities 25133300952.94 21235482014.45

Non-current liabilities

Long term loans 2891941462.40 1723726700.80

Bonds payable 5569899459.53 5451381676.38

Including: Preferred stock

Perpetual bond

Lease liabilities 1633911586.51 1342427252.45

Long-term payables

Long-term employee benefits payable

Estimated liabilities

Deferred income 154871615.47 136084955.18

Deferred tax liabilities 252893530.26 329914385.19

Other non-current liabilities

Total non-current liabilities 10503517654.17 8983534970.00

Total liabilities 35636818607.11 30219016984.45

Shareholder’s equity:

Share capital 4108228157.00 4108219302.00

Other equity instruments 947850195.03 947858134.16

Including: Preferred stock

Perpetual bond

Capital reserves 12825142354.02 12852074188.80

Less: Treasury shares

Other comprehensive income -93407196.62 -50371341.88

Special reserves 9276.81 3681.16

Surplus reserves 1195116522.37 1195116522.37

Undistributed Profits -8088697453.94 -2900010737.27

Total shareholder's equity 10894241854.67 16152889749.34

Total liabilities and shareholder’s equity 46531060461.78 46371906733.79

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

129Bengang Steel Plates Co. Ltd. Annual Report 2024

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

For the year ended 31 December 2024

(Expressed in Renminbi unless otherwise indicated)

Items Notes 5 Current period Previous period

1. Total operating income 51266361501.22 57957301717.02

Including: Operating income (39) 51266361501.22 57957301717.02

Interest income

Premium earned

Income from handling charges and commission

2. Total operating cost 56068974028.50 59824687870.58

Including: Operating cost (39) 54693756805.43 58450348769.43

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 (40) 203043367.36 215721980.86

Selling and distribution expenses (41) 142638617.77 149659100.28

General and administrative expenses (42) 702788411.83 619677417.05

Research and development expenses (43) 86415509.29 81247560.73

Financial expenses (44) 240331316.82 308033042.23

Including: Interest expense 384713981.73 415219929.72

Interest income 43019766.05 56283070.97

Add: Other income (45) 200140947.91 100870396.00

Income on investment（“-” for loss） (46) -42967621.92 -2805789.13

Including: Income from associates and joint ventures -1497124.69 -1085968.20

Income from derecognition of financial assets measured at amortized cost -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） (47) 50143005.20 10021338.62

Asset impairment loss （“-” for loss） (48) -278486334.42 -35339403.25

Assets disposal gains（“-” for loss） (49) 13020778.49 298940955.41

3. Operational profit（“-” for loss） -4860761752.02 -1495698655.91

Add: Non-operating income (50) 45789122.58 43408651.98

Less: Non-operating expenses (51) 54707998.74 95099082.07

4. Total profit (“-” for loss) -4869680628.18 -1547389086.00

Less: Income tax expenses (52) 90436789.08 100979291.81

5. Net profit（“-” for loss） -4960117417.26 -1648368377.81

1.Classification by continuing operating

1.Net profit from continuing operation（“-” for loss） -4960117417.26 -1648368377.81

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

2.Classification by ownership

1. Net profit attributable to the owners of parent company （“-” for loss） -5037271398.28 -1720871697.00

2. Net profit attributable to non-controlling shareholders （“-” for loss） 77153981.02 72503319.19

6.Other comprehensive income -43035854.74 -34466581.86

Other comprehensive income attributable to owners of the parent company after tax -43035854.74 -34466581.86

1.Other comprehensive income items that will not be reclassified into gains/losses -43035854.74 -34466581.86

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 -43035854.74 -34466581.86

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 -5003153272.00 -1682834959.67

Total comprehensive income attributable to the owner of the parent company -5080307253.02 -1755338278.86

Total comprehensive income attributable to non-controlling shareholders 77153981.02 72503319.19

8. Earnings per share

1）Basic earnings per share -1.226 -0.419

2）Diluted earnings per share -1.226 -0.419

For the business combination under common control that occurred in this period the net profit realized by the

combined party before the combination was RMB 16120746.07 and the net profit realized by the combined party

in the previous period was RMB 21702466.92. The notes to the financial statements attached form part of these

financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:

130Bengang Steel Plates Co. Ltd. Annual Report 2024

BENGANG STEEL PLATES CO. LTD.STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2024

(Expressed in Renminbi unless otherwise indicated)

Items Notes 15 Current period Previous period

1. Total operating income (4) 51996293457.84 58186982131.76

Less: Operating cost (4) 55850177739.34 59293494660.13

Tax and surcharges 155742776.69 160404863.00

Selling and distribution expenses 175678966.90 143971980.36

General and administrative expenses 666227276.41 577042517.96

Research and development expenses 86415509.29 81247560.73

Financial expenses 260257651.32 320034306.92

Including: Interest expense 384713981.73 413822456.17

Interest income 36704884.79 40683621.30

Add: Other income 129520303.41 78279172.38

Income on investment（“-” for loss） (5) 120893779.91 461590550.66

Including: Income from associates and joint ventures -1497124.69 -1085968.20

Income from derecognition of financial assets

-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） 30265261.74 12829866.46

Assets impairment loss（“-” for loss） -278486334.42 -35339403.25

Assets disposal gains（“-” for loss） 13017822.58 298940955.41

2. Operational profit（“-” for loss） -5182995628.89 -1572912615.68

Add: Non-operating income 45130689.39 42653931.69

Less: Non-operating expenses 42889041.92 94106015.35

3. Total profit (“-” for loss) -5180753981.42 -1624364699.34

Less: Income tax expenses 7932735.25 -20687646.74

4. Net profit（“-” for loss） -5188686716.67 -1603677052.60

1.Net profit from continuing operation (“-” for loss) -5188686716.67 -1603677052.60

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

5.Other comprehensive income -43035854.74 -34466581.86

1.Other comprehensive income items that will not be reclassified

-43035854.74-34466581.86

into gains/losses

1) Re-measurement of defined benefit plans of changes

2) Other comprehensive income under the equity method cannot

be reclassified into profit or loss

3) Changes in fair value of investments in other equity

-43035854.74-34466581.86

instruments

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

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

loss.

1) Other comprehensive income under the equity method investee

can be reclassified into profit or loss

2) Changes in fair value of other debt investments

3) Amount of financial assets reclassified into other

comprehensive income

4) Credit impairment provision of other debt investments

5) Cash flow hedges reserve

6) Translation differences in foreign currency financial statements

7) Others

6. Total comprehensive income -5231722571.41 -1638143634.46

7. Earnings per share

1）Basic earnings per share

2）Diluted earnings per share

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

131Bengang Steel Plates Co. Ltd. Annual Report 2024

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

For the year ended 31 December 2024

(Expressed in Renminbi unless otherwise indicated)

Items Notes 5 Current period Previous period

1.Cash flow from operating activities

Cash received from sale of goods or rendering of services 55987587183.40 55063430323.73

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 124001236.84 211151790.47

Other cash received relating to operating activities (53) 243342089.30 303455869.80

Subtotal of cash inflows from operating activities 56354930509.54 55578037984.00

Cash paid for goods and services 52271670593.20 47738828807.44

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 2136471168.09 2518509902.02

Cash paid for all types of taxes 440396205.59 541296146.69

Other cash paid relating to operating activities (53) 406104548.41 433169246.62

Subtotal of cash outflows from operating activities 55254642515.29 51231804102.77

Net cash flows from operating activities 1100287994.25 4346233881.23

2. Cash flows from investing activities

Cash received from disposal of investments 1843800.00

Cash received from return on investments 896200.00

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

137069554.3785057599.66

term assets

Net cash received from disposal of subsidiary and other operating units

Other cash paid relating to investing activities

Subtotal of cash inflows from investing activities 137069554.37 87797599.66

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

975204696.55994821507.90

assets

Cash paid for acquisition of investments

Net increase of mortgage loan

Net cash received from subsidiary and other operating unit

Other cash paid relating to investing activities

Subtotal of cash outflows from investing activities 975204696.55 994821507.90

Net cash flows from investing activities -838135142.18 -907023908.24

3. Cash flows from financing activities

Proceeds from investment

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

Proceeds from borrowings 3765000000.00 1570000000.00

Other proceeds relating to financing activities (53) 3808123889.76 1208395091.10

Subtotal of cash inflows from financing activities 7573123889.76 2778395091.10

Cash repayments of borrowings 2283590268.00 3947582606.32

Cash payments for distribution of dividends profit or interest expenses 274024906.84 279847394.73

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

68041170.80

subsidiaries

Other cash payments relating to financing activities (53) 4940069284.22 2120624742.04

Subtotal of cash outflows from financing activities 7497684459.06 6348054743.09

Net cash flows from financing activities 75439430.70 -3569659651.99

4. Effect of foreign exchange rate changes on cash and cash equivalents 52927527.76 33471460.59

5. Net increase in cash and cash equivalents (54) 390519810.53 -96978218.41

Add: Cash and cash equivalents at the beginning of the period (54) 1199685408.38 1296663626.79

6. Cash and cash equivalents at the ending of the period (54) 1590205218.91 1199685408.38

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

132Bengang Steel Plates Co. Ltd. Annual Report 2024

BENGANG STEEL PLATES CO. LTD.STATEMENT OF CASH FLOWS

For the year ended 31 December 2024

(Expressed in Renminbi unless otherwise indicated)

Items Notes 15 Current period Previous period

1. Cash flow from operating activities

Cash received from sale of goods or rendering of services 55337530940.66 54729135209.16

Tax rebate received 117007166.59 182654395.44

Other cash received relating to operating activities 214590835.88 313226321.84

Subtotal of cash inflows from operating activities 55669128943.13 55225015926.44

Cash paid for goods and services 52556437895.34 47458464490.84

Cash paid to and on behalf of employees 1974094315.49 2350688837.49

Cash paid for all types of taxes 280573222.50 227899745.84

Other cash paid relating to operating activities 365386433.69 383220547.63

Subtotal of cash outflows from operating activities 55176491867.02 50420273621.80

Net cash flows from operating activities 492637076.11 4804742304.64

2. Cash flows from investing activities

Cash received from disposal of investments

Cash received from return on investments 199000000.00 204123512.41

Net cash received from disposal of fixed assets intangible

137064700.0085053599.66

assets and other long-term assets

Net cash received from disposal of subsidiary and other

operating units

Other cash received relating to investing activities

Subtotal of cash inflows from investing activities 336064700.00 289177112.07

Cash paid for acquisition of fixed assets intangible assets and

966576178.20989247449.99

other long-term assets

Cash paid for acquisition of investments

Net cash paid for acquisition of subsidiary and other

operating unit

Other cash paid relating to investing activities

Subtotal of cash outflows paid for investing activities 966576178.20 989247449.99

Net cash flows from investing activities -630511478.20 -700070337.92

3. Cash flows from financing activities

Proceeds from investment

Cash received from borrowings 3765000000.00 1570000000.00

Other cash received relating to financing activities 3808123889.76 1128377111.10

Subtotal of cash inflows from financing activities 7573123889.76 2698377111.10

Cash repayments of borrowings 2283590268.00 3947582606.32

Cash payments for distribution of dividends profit or interest 274024906.84 211806223.93

Other cash payments relating to financing activities 4940069284.22 2022320452.46

Subtotal of cash outflows from financing activities 7497684459.06 6181709282.71

Net cash flows from financing activities 75439430.70 -3483332171.61

4. Effect of foreign exchange rate changes on cash and

52846084.9732520496.22

cash equivalents

5. Net increase in cash and cash equivalents -9588886.42 653860291.33

Add: Cash and cash equivalents at the beginning of the period 1074502887.78 420642596.45

6. Ending balance of cash and cash equivalents 1064914001.36 1074502887.78

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

133Bengang Steel Plates Co. Ltd. Annual Report 2024

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

For the year ended 31 December 2024

(Expressed in Renminbi unless otherwise indicated)

Current period

Owner's equity attributable to parent company

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

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

e shares bond shares income reserve

1. Ending balance of last year 4108219302.00 947858134.16 13422225870.92 -50371341.88 163055.04 1195116522.37 -2414685928.92 17208525613.69 589070286.60 17797595900.29

Add: Change of accounting policies

Correction of errors for last period

Business consolidation under common

control

Others

2. Beginning balance of current year 4108219302.00 947858134.16 13422225870.92 -50371341.88 163055.04 1195116522.37 -2414685928.92 17208525613.69 589070286.60 17797595900.29

3. Changes in current year (“-” for

decrease) 8855.00 -7939.13 -196593703.97 -43035854.74 646594.61 -5082325703.98 -5321307752.21 22845172.08 -5298462580.13

1) Total comprehensive income -43035854.74 -5037271398.28 -5080307253.02 77153981.02 -5003153272.00

2) Capital increase and decrease by

shareholders 8855.00 -7939.13 -196593703.97 -196592788.10 -196592788.10

(1) Common share invested by

shareholders

(2) Capital input by the holder of other

equity instruments 8855.00 -7939.13 25840.89 26756.76 26756.76

(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:

134Bengang Steel Plates Co. Ltd. Annual Report 2024

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

For the year ended 31 December 2024

(Expressed in Renminbi unless otherwise indicated)

Previous period

Owner's equity attributable to parent company

Non-

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

Undistributed controlling

Share capital Preference Perpetual Capital reserves Treasury comprehensive Special reserves Surplus reserves risk Subtotal equity

Others profit interest

shares bond shares income reserve

1. Ending balance of last year 4108212217.00 947863834.02 13272205160.21 -15904760.02 2217913.77 1195116522.37 -720559670.73 18789151216.62 584587863.76 19373739080.38

Add: Change of accounting policies

Correction of errors for last period

Business consolidation under common control 150000000.00 26745438.81 176745438.81 176745438.81

Others

2. Beginning balance of current year 4108212217.00 947863834.02 13422205160.21 -15904760.02 2217913.77 1195116522.37 -693814231.92 18965896655.43 584587863.76 19550484519.19

3. Changes in current year (“-” for decrease) 7085.00 -5699.86 20710.71 -34466581.86 -2054858.73 -1720871697.00 -1757371041.74 4482422.84 -1752888618.90

1) Total comprehensive income -34466581.86 -1720871697.00 -1755338278.86 72503319.19 -1682834959.67

2) Capital increase and decrease by shareholders 7085.00 -5699.86 20710.71 22095.85 22095.85

(1) Common share invested by shareholders

(2) Capital input by the holder of other equity 7085.00 -5699.86 20710.71 22095.85 22095.85

instruments

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

(4) Others

3) Profit distribution -68041170.80 -68041170.80

(1) Appropriation to surplus reserves

(2) Appropriation to general risk reserve

(3) Profit distribution to shareholders -68041170.80 -68041170.80

(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 -2054858.73 -2054858.73 20274.45 -2034584.28

(1) Provision of special reserves 78097744.04 78097744.04 4945238.85 83042982.89

(2) Use of special reserves 80152602.77 80152602.77 4924964.40 85077567.17

6) Others

4. Ending balance of current year 4108219302.00 947858134.16 13422225870.92 -50371341.88 163055.04 1195116522.37 -2414685928.92 17208525613.69 589070286.60 17797595900.29

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

Legal Representative: Chief Financial Officer: Chief Accountant:

135Bengang Steel Plates Co. Ltd. Annual Report 2024

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

For the year ended 31 December 2024

(Expressed in Renminbi unless otherwise indicated)

Current period

Other equity instruments

Items Less: Other Special Undistributed Total shareholder’s

Share capital Preference Perpetua Capital reserves Treasury comprehens Surplus reserves

Others reserves profits equity

shares l bond shares ive 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:

136Bengang Steel Plates Co. Ltd. Annual Report 2024

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

For the year ended 31 December 2024

(Expressed in Renminbi unless otherwise indicated)

Previous period

Other equity instruments Less: Other

Items Special Undistributed Total shareholder’s

Share capital Preference Perpetual Capital reserves Treasury comprehens Surplus reserves

Others reserves profits equity

shares bond shares ive income

1. Ending balance of last year -4108212217.00 947863834.02 12852053478.09 15904760.02 58212.15 1195116522.37 -1296333684.67 17791065818.94

Add: Change of accounting policies

Correction of errors for last period

Others

2. Beginning balance of current year -4108212217.00 947863834.02 12852053478.09 15904760.02 58212.15 1195116522.37 -1296333684.67 17791065818.94

3. Changes in current year (“-” for decrease) 7085.00 -5699.86 20710.71 -34466581.86 -54530.99 -1603677052.60 -1638176069.60

1) Total comprehensive income - -1603677052.60 -1638143634.46 34466581.86

2) Capital increase and decrease by shareholders 7085.00 -5699.86 20710.71 22095.85

(1) Common share invested by shareholders

(2) Capital input by the holder of other equity instruments 7085.00 -5699.86 20710.71 22095.85

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

(4) Others

3) Profit distribution

(1) Appropriation of surplus reserves

(2) Profit distribution to shareholders

(3) Others

4) Transfers within shareholders' equity

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

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

(3) Surplus reserves to recover loss

(4) Net changes of defined contribution plans transferred into

Retained Earnings

(5) Other comprehensive income transferred into retained

earnings

(6) Others

5) Special reserves -54530.99 -54530.99

(1) Provision of special reserves 63360278.27 63360278.27

(2) Use of special reserves 63414809.26 63414809.26

6) Others

4. Ending balance of current year 4108219302.00 947858134.16 12852074188.80 -50371341.88 3681.16 1195116522.37 -2900010737.27 16152889749.34

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

Legal Representative: Chief Financial Officer: Chief Accountant:

137Bengang Steel Plates Co. Ltd. Annual Report 2024

3. Basic Information of the Company

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

138Bengang Steel Plates Co. Ltd. Annual Report 2024

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

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

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

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

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

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

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

and 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

81.07% of the total share capital of Bengang Steel Plates.

As at 31 December 2024 the capital shares were totaled to 4108221073.00 shares.The Company’s uniform social credit code: 91210000242690243E.The Company’s registered address: 16th Renmin Road Pingshan District Benxi Liaoning

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

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

Company on 2 April 2025.

4. Basis of preparation

(1) Basis of preparationThe financial statements have been prepared in accordance with “Accounting Standards forBusiness Enterprises – Basic Standard” and relevant specific standards application materials

139Bengang Steel Plates Co. Ltd. Annual Report 2024interpretations (together hereinafter referred to as “Accounting Standards for BusinessEnterprises”) issued by the Ministry of Finance and “Information Disclosure Rules forCompanies of securities for public issuance No. 15 – General Regulations for FinancialStatements” issued by the China Securities Regulatory Commission.

(2) Going concern

The financial statements have been prepared on a going concern basis.

5. Significant accounting policies and accounting estimates

The following disclosed content covers the specific accounting policies and accounting

estimates that are adopted by the Company based on the actual production and operation

characteristics. Please see Note (10) Financial instruments (11) Inventory (14) Fixed assets

(17) Intangible assets (23) Revenue under “5. Significant accounting policies andaccounting estimates” for details.

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

The financial statements present truly and completely the financial position operation results

and cash flows of the consolidated and parent company during the reporting period in

accordance with China Accounting Standards for Business Enterprises.

(2) Accounting year

The Accounting year is from 1 January to 31 December.

(3) Operating period

The operating period is twelve months.

(4) Functional currency

The Company’s functional currency is RMB.

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

Business combination under common control

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

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

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

140Bengang Steel Plates Co. Ltd. Annual Report 2024

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

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

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

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

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

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

period. All identifiable assets liabilities and contingent liabilities of the acquiree that meet the

recognition criteria acquired in the merger are measured at fair value on the acquisition date.Directly related expenses incurred for a business combination are recorded in the current

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

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

securities or debt securities.

(6) Scope of consolidation and Consolidation of Financial Statements

1. Scope of consolidation

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

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

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

the relevant activities of the investee and has the ability to use the power over the investee to

influence the amount of its returns.

2. Procedure of consolidation

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

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

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

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

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

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

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

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

141Bengang Steel Plates Co. Ltd. Annual Report 2024

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

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

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

(1) Increasing new subsidiaries and businesses

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

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

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

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

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

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

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

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

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

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

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

reporting entity after the combination has been in existence since the date the ultimate

controlling party first obtained control. The investment income recognized between date of

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

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

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

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

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

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

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

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.

142Bengang Steel Plates Co. Ltd. Annual Report 2024

(2) Disposing subsidiaries or businesses

1. General treatment

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

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

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

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

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

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

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

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

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

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

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

over acquiree.

2. Disposing subsidiaries by multiple transactions

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

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

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

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

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

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

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

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

other arrangement; and

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

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

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

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

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

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

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

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

143Bengang Steel Plates Co. Ltd. Annual Report 2024

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

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

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

cases.

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

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

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

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

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

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

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

sufficient any excess shall be adjusted against retained earnings.

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

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

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

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

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

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

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

any excess shall be adjusted against retained earnings.

(7) Classification of joint venture arrangements and accounting treatment

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

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

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

operation and performs accounting treatment in accordance with the relevant enterprise

accounting standards:

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

the Company's share;

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.

144Bengang Steel Plates Co. Ltd. Annual Report 2024

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

(8) Recognition of cash and cash equivalents

The term “cash” refers to the cash on hand and the unrestricted deposit. And the term “cashequivalents” refers to short-term (maturing within three months from acquisition) and highly

liquid investments that are readily convertible to known amounts of cash and which are subject

to an insignificant risk of change in value.

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

1. Foreign currency transactions

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

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

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

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

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

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

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

losses at the current period.

2. Translation of foreign currency financial statements

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

145Bengang Steel Plates Co. Ltd. Annual Report 2024

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

designated as financial assets measured at fair value through profit or loss.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.

146Bengang Steel Plates Co. Ltd. Annual Report 2024

The Company may at initial recognition designate a financial liability as measured at fair value

through profit or loss because either:

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

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

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

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

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

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

2. Recognition and measurement of financial instruments

(1) Financial assets measured at amortised cost

Financial assets measured at amortized cost include notes receivables accounts receivables

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

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

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

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

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

to consider for a financing component of no more than one year.Interests calculated by using the effective interest method during the holding period shall be

recognized in profit or loss.When recovering or disposing the receivables the difference between the price obtained and

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

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

instruments)

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

147Bengang Steel Plates Co. Ltd. Annual Report 2024

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

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

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

comprehensive income and recognized in profit or loss.

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

instruments)

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

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

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

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

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

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

and recognised in retained earnings.

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

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

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

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

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

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

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

148Bengang Steel Plates Co. Ltd. Annual Report 2024

changes in fair value are adjusted.

(6) Financial liabilities measured at amortised cost

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

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

recognized in profit or loss.When the financial liabilities are derecognized the difference between the price obtained and.the carrying value shall be recognised in profit and loss.

3. Termination of recognition of financial assets and financial assets transfer

When one of the following conditions is met the company terminates the recognition of

financial assets.- Termination of contractual rights to receive cash flows from financial assets;

- The financial assets have been transferred and almost all the risks and rewards in the

ownership of the financial assets have been transferred to the transferee;

- The financial assets have been transferred. Although the company has neither transferred

nor retained almost all the risks and rewards of the ownership of the financial assets it has

not retained control of the financial assets.If the Company modifies or renegotiates a contract with its counterparty and the modification

constitutes a substantial modification the original financial asset will be derecognized and a

new financial asset will be recognized in accordance with the modified terms.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

149Bengang Steel Plates Co. Ltd. Annual Report 2024

for de-recognition the difference between the amounts of the following 2 items shall be

recorded in the profits and losses of the current period:

(1) The book value of the transferred financial asset; and

(2) The sum of consideration received from the transfer and the accumulative amount of the

changes of the fair value originally recorded in the owners' equities (in the event that the

financial asset involved in the transfer is a financial asset Available-for-sale).If the transfer of partial financial asset satisfies the conditions to derecognize the entire book

value of the transferred financial asset shall between the portion whose recognition has been

stopped and the portion whose recognition has not been stopped (under such circumstance

the service asset retained shall be deemed as a portion of financial asset whose recognition

has not been stopped) be apportioned according to their respective relative fair value and

the difference between the amounts of the following 2 items shall be included into the profits

and losses of the current period :

(1) The book value of the portion whose recognition has been stopped; and

(2) The sum of consideration of the portion whose recognition has been stopped and the

portion of the accumulative amount of the changes in the fair value originally recorded in the

owner's equities which is corresponding to the portion whose recognition has been stopped

(in the event that the financial asset involved in the transfer is a financial asset Available-for-

sale).If the transfer of financial assets does not satisfy the conditions to stop the recognition it

shall continue to be recognized as financial assets and the consideration received shall be

recognized as financial liabilities.

4. Termination of recognition of financial liabilities

Only when the prevailing obligations of a financial liability are relieved in all or in part may

the recognition of the financial liability be terminated in all or partly. Where the Company

(debtor) enters into an agreement with a creditor so as to substitute the existing financial

liabilities by way of any new financial liability and if the contractual stipulation regarding

the new financial liability is substantially different from that regarding the existing financial

liability it shall terminate the recognition of the existing financial liability and shall at the

same time recognize the new financial liability.Where the Company makes substantial revisions to part or all of the contractual stipulations

of the existing financial liability it shall terminated the recognition of the existing financial

liability or part of it and at the same time recognize the financial liability after revising the

contractual stipulations as a new financial liability.Where the recognition of a financial liability is totally or partially terminated the Company

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

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

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

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

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

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

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

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

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

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

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

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

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

150Bengang Steel Plates Co. Ltd. Annual Report 2024

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

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

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

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

Company use unobservable inputs for the asset or liability.

6. Impairment provision of the financial assets

The Company recognize the expected credit loss on financial assets measured at amortized cost

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

financial guarantee contract and so on on the individual or portfolio basis.The Company considers all reasonable and relevant information including past events current

conditions and forecasts of future economic conditions and uses the risk of default as the

weight to calculate the probability-weighted amount of present value of difference between the

cash flow receivable from the contract and the cash flow expected to be received to confirm

the expected credit loss.For account receivables and contract assets recognized according to Accounting Standards for

Business Enterprises No. 14 Revenue whether a significant financing component is contained

or not the Company shall always measure the loss allowance at an amount equal to lifetime

expected credit losses.For lease receivables recognized according to Accounting Standards for Business Enterprises

No. 21 Lease the Company shall always measure the loss allowance at an amount equal to

lifetime expected credit losses.For other financial instruments the Company shall assess changes in the credit risk of the

relevant financial instruments since initial recognition at each balance sheet date.The company compares the risk of default on the balance sheet date of financial instruments

with the risk of default on the date of initial recognition to determine the relative change in the

risk of default during the expected life of the financial instrument to assess whether there is a

significant increase in credit risk of financial assets since the initial recognition. Generally the

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

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.

151Bengang Steel Plates Co. Ltd. Annual Report 2024

(11) Inventory

1. Inventory classification

Inventories include material in transit raw material turnover materials finished goods work

in process issue commodity materials for consigned processing etc.Inventory is initially measured at cost. Inventory cost includes purchase cost processing cost

and other expenditures incurred to bring inventory to its current location and state.

2. Valuation method for inventory dispatched

The weighted average method is used to confirm the actual cost of the inventories dispatched.

3. Inventory system

The Company uses perpetual inventory system.

4. Amortization of low-valued consumables and packing materials

(1) Low-valued consumables shall be amortized in full amount on issuance.

(2) Packing materials shall be amortized in full amount on issuance.

5. The basis for confirming the net realizable value of inventories and the methods to

make provision for the inventory impairment loss

On the balance sheet date inventories shall be measured at the lower of cost and net realizable

value. When the cost of inventories is higher than its net realizable value provision for

inventory impairment loss shall be made. The net realizable value refers to the amount of the

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.

152Bengang Steel Plates Co. Ltd. Annual Report 2024

After the inventory impairment is withdrawn if the factors that previously affected the write-

down of the inventory value have disappeared causing the net realizable value of the inventory

to be higher than its book value it shall be reversed within the amount of the inventory

impairment that has been withdrawn and the reverted amount shall be included in the current

profit and loss.

(12) Contract asset

1. Recognition methods and criteria of contract assets

When either party to a contract has performed the Company shall present the contract in the

statement of financial position as a contract asset or a contract liability depending on the

relationship between the Company’s performance and the customer’s payment. If the

Company have the rights to receive consideration (the right is conditioned on factors other

than the passage of time) by transferring goods or services to a customer the entity shall

present the contract as a contract asset. Contract assets and contract liabilities under the same

contract are disclosed in net amount. An entity shall present any unconditional rights to

consideration (only the passage of time is required) separately as a receivable.

2. Expected credit loss of contract assets

For the accounting policy of the expected credit loss of contract assets please refer to Note

(10) 6. Impairment provision of the financial assets under “3. Significant accounting policiesand accounting estimates”

(13) Long-term equity investment

1. Criteria of joint control and significant influence

Joint control is the contractually agreed sharing of control of an arrangement which exists only

when decisions about the relevant activities require the unanimous consent of the parties

sharing control. If the Company and other joint venture have joint control of the investee and

have rights to the net assets of the investee the investee is a joint venture of the Company.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.

153Bengang Steel Plates Co. Ltd. Annual Report 2024

When an investor becomes capable of exercising control over an investee due to additional

investment or other reasons the difference between the initial investment cost recognized in

accordance with the above principles and the sum of the book value of the long-term equity

investment before the merger plus the book value of the cost for the further shares acquired on

the merger date shall be adjusted to the capital reserve. If the balance of capital reserve is not

sufficient any excess shall be adjusted to retained earnings.For a business combination not under common control the initial investment cost of the long-

term equity investment shall be the acquisition cost at the acquisition date. When an investor

becomes capable of exercising control over an investee due to additional investment or other

reasons the initial investment cost under the cost method shall be the carrying amount of

previously held equity investment together with the additional investment cost.

(2) The initial cost of the long-term equity investment other than from business acquisition

The initial cost of a long-term equity investment obtained by making payment in cash shall be

the purchase cost which is actually paid.The initial cost of a long-term equity investment obtained on the basis of issuing equity

securities shall be the fair value of the equity securities issued.

3. Subsequent measurement and profit or loss recognition

(1) Cost method

The Company adopts cost method for the long term investment in subsidiary company unless

the investment qualifies as held for sale. An investing enterprise shall in accordance with the

attributable share of the net profits or losses of the invested entity recognize the investment

profits or losses except the dividend declared but unpaid which is included in the payment

when acquiring the investment.

(2) Equity method

A long-term equity investment in an associate or a joint venture shall be accounted for using

the equity method. Where the initial investment cost of a long-term equity investment exceeds

investor’s interest in the fair values of an investee’s identifiable net assets at the acquisition

date no adjustment shall be made to the initial investment cost. Where the initial cost is less

than the investor’s interest in the fair values of the investee’s identifiable net assets at the

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.

154Bengang Steel Plates Co. Ltd. Annual Report 2024

The Company shall recognize its share of the investee’s net profits or losses as well as its share

of the investee’s other comprehensive income as investment income or losses and other

comprehensive income and adjust the carrying amount of the investment accordingly. The

carrying amount of the investment shall be reduced by the portion of any profit distributions or

cash dividends declared by the investee that is attributable to the investor. The investor’s share

of the investee’s owners’ equity changes other than those arising from the investee’s net profit

or loss other comprehensive income or profit distribution and the carrying amount of the long-

term equity investment shall be adjusted accordingly.During the holding period if the investee makes consolidated financial statements the

Company shall calculate its share based on the investee’s net profit other comprehensive

income and the amount of other owners' equity attribute to the investee in the consolidated

financial statements. The investor shall recognize its share of the investee’s net profits or losses

after making appropriate adjustments according to the Company’s accounting principles and

operating period based on the fair values of the investee’s identifiable net assets.The unrealized profits or losses resulting from transactions between the investor and its

associate or joint venture shall be eliminated in proportion to the investor’s equity interest in

the investee based on which investment income or losses shall be recognized except the

transaction of investment or sale of assets is a business. Any losses resulting from transactions

between the investor and investee which are attributable to asset impairment shall be

recognized in full.The company’s net losses incurred by joint ventures or associates in addition to assuming

additional loss obligations are limited to the book value of long-term equity investments and

other long-term equity that essentially constitutes net investment in joint ventures or associates.If a joint venture or associated enterprise realizes net profits in the future the company resumes

recognizing its share of profits after the share of profits makes up for the share of unrecognized

losses.

(3) Disposal of long-term equity investment

When disposing long-term equity investment the difference between the proceeds actually

received and the carrying amount shall be recognized in profit or loss for the current period.Partial disposal of long-term equity investments accounted for by the equity method and the

remaining equity is still accounted for by the equity method the other comprehensive income

recognized by the original equity method shall be carried forward according to the same basis

155Bengang Steel Plates Co. Ltd. Annual Report 2024

as the direct disposal of related assets or liabilities by the investee. All other changes in the

interests of the holders are carried forward to the current profit and loss on a pro rata basis.When an investor can no longer exercise joint control of or significant influence over an

investee due to disposal of equity investment or other reasons any other comprehensive income

previously recognized shall be accounted for on the same basis as would have been required if

the investee had directly disposed of the related assets or liabilities for the current period upon

discontinuation of the equity method. Other owner's equity change shall be transferred into

profit or loss of current period in full when the Company cease to adopt the equity method.When an investor can no longer control the investee due to partial disposal when the individual

financial statements are prepared the remaining equity can exercise joint control or significant

influence on the investee the equity method shall be used to account for the remaining equity.It is deemed that the equity method is adopted for adjustment since the acquisition and the

other comprehensive income recognized before the control of the investee is obtained is carried

forward on the same basis as the direct disposal of related assets or liabilities by the investee

because the equity method is used for accounting. The confirmed changes in other owners’

equity are carried forward to the current profit and loss on a pro rata basis. If the remaining

equity cannot exercise joint control or exert significant influence on the investee it shall be

recognized as a financial asset and the difference between its fair value and book value on the

date when control is lost shall be included in the current profit and loss and other

comprehensive income and other owner’s interests previously recognized shall be transferred

to profit or loss in full.If the equity investment of a subsidiary is disposed through multiple transactions until it loses

control which is a package transaction each transaction shall be accounted as a transaction

that disposes of the equity investment of the subsidiary and loses control. Each transaction

before the loss of control the difference between the disposal price and the book value of the

corresponding disposed part of long-term equity investment is firstly recognized as other

comprehensive income in individual financial statements and then transferred to the current

profit and loss when the control is lost. If it is not a package transaction each transaction shall

be accounted separately.

(14) Fixed assets

1. Recognition of Fixed assets

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

156Bengang Steel Plates Co. Ltd. Annual Report 2024

of one fiscal year. No fixed asset may be recognized unless it simultaneously meets the

conditions as follows:

(1) The economic benefits pertinent to the fixed asset are likely to flow into the enterprise; and

(2) The cost of the fixed asset can be measured reliably.

Fixed assets are initially measured at cost (and considering the impact of expected dismantling

cost factors).Subsequent expenditures related to fixed assets are included in the cost of fixed assets when

the related economic benefits are likely to flow in and their costs can be reliably measured; the