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 book value of the replaced part is derecognized; all other subsequent expenditures are incurred shall be included in the current profit and loss. 2. Fixed assets depreciation Fixed assets are depreciated under the straight line method. The depreciation rate is determined according to the category of assets the useful life and the expected residual rate. If the components of the fixed assets have different useful lives or provide the economic benefits in a different way then different depreciation rate or method shall be applied and the depreciation of the components shall be calculated separately.Details of classification depreciation period residual value rate and annual depreciation rate are as follows: Depreciation Depreciation Residual Value Category Depreciation method Rate Period Rate (%) (%) Plants and Buildings straight line method 40 years 5.00 2.38 Machinery straight line method 17-24 years 5.00 3.96-5.59 Transportation and straight line method 5-12 years 5.00 7.92-19.00 other equipment 4. Disposal of fixed assets When a fixed asset is disposed or it is expected that no economic benefits will be generated through use or disposal the recognition of fixed asset shall be de terminated. The amount of disposal income of fixed assets raising from sell transfer scrapping or damage shall be included in the current profit and loss after deducting its book value and related taxes. (15) Construction in progress Construction in progress is measured at the actual cost incurred. The actual cost includes construction costs installation costs borrowing costs that meet the capitalization conditions 157Bengang Steel Plates Co. Ltd. Annual Report 2024 and other necessary expenditures incurred before the construction in progress reaches its intended use status. Construction in progress is transferred to fixed asset when it has reached its working condition for its intended use and depreciation will be accrued from the next month. (16) Borrowing costs 1. Principle of the recognition of capitalized borrowing costs Where the borrowing costs incurred to an enterprise can be directly attributable to the acquisition and construction or production of assets eligible for capitalization it shall be capitalized and recorded into the costs of relevant assets. Other borrowing costs shall be recognized as expenses on the basis of the actual amount incurred and shall be recorded into the current profits and losses.Assets eligible for capitalization refer to the fixed assets investment property inventories and other assets of which the acquisition and construction or production may take quite a long time to get ready for its intended use or for sale. 2. The capitalization period of borrowing costs The capitalization period shall refer to the period from the commencement to the cessation of capitalization of the borrowing costs excluding the period of suspension of capitalization of the borrowing costs.The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements: (1) The asset disbursements have already incurred which shall include cash transferred non- cash assets or interest bearing debts paid for the acquisition and construction or production activities for preparing assets eligible for capitalization; (2) The borrowing costs has already incurred; and (3) The acquisition and construction or production activities which are necessary to prepare the asset for its intended use or sale have already started.When the qualified asset under acquisition and construction or production is ready for the intended use or sale the capitalization of the borrowing costs shall be ceased. 3. The suspension of capitalization of borrowing costs Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period lasts for more than 3 months the capitalization of the borrowing costs shall be suspended. If the interruption is a necessary step for making the qualified asset under acquisition and construction or production ready for the intended use or 158Bengang Steel Plates Co. Ltd. Annual Report 2024 sale the capitalization of the borrowing costs shall continue. The borrowing costs incurred during such period shall be recognized as expenses and shall be recorded into the profits and losses of the current period till the acquisition and construction or production of the asset restarts. 4. Method of calculating the capitalization rate and capitalized amount of borrowing costs For interest expense (minus the income of interests earned on the unused borrowing loans as a deposit in the bank or investment income earned on the loan as a temporary investment) and the ancillary expense incurred to a specifically borrowed loan those incurred before a qualified asset under acquisition construction or production is ready for the intended use or sale shall be capitalized at the incurred amount when they are incurred and shall be recorded into the costs of the asset eligible for capitalization.The Company shall calculate and determine the to-be-capitalized amount of interests on the general borrowing by multiplying the weighted average asset disbursement of the part of the accumulative asset disbursements minus the general borrowing by the capitalization rate of the general borrowing used. The capitalization rate shall be calculated and determined in light of the weighted average interest rate of the general borrowing.During the capitalization period the exchange difference between the principal and interest of the foreign currency special loan is capitalized and included in the cost of the assets that meet the capitalization conditions. Exchange differences arising from the principal and interest of foreign currency borrowings other than foreign currency special borrowings are included in the current profits and losses. (17) Intangible Assets 1. Measurement of Intangible Assets (1) Initial measurement is based on cost upon acquisition The cost of an intangible asset on acquisition include the purchase price relevant taxes and other necessary disbursements which may be directly attributable to bringing the intangible asset to the conditions for the expected purpose. (2) Subsequent Measurement The Company shall analyze and judge the beneficial period of intangible assets upon acquisition.Intangible assets with finite beneficial period shall be amortized under the straight-line method during the period when the intangible asset can bring economic benefits to the enterprise. If it 159Bengang Steel Plates Co. Ltd. Annual Report 2024 is unable to estimate the beneficial period of the intangible asset it shall be regarded as an intangible asset with uncertain service life and shall not be amortized. 2. Estimated useful lives of intangible assets with limited useful lives Item Estimated useful life Criteria Land use right 50 years Land use right certificate Software 10 years Estimated useful life 3. Classification criteria for internal research phase and development phase The expenditures for its internal research and development projects of an enterprise shall be classified into research expenditures and development expenditures.Research phase refers to the phase of creative and planned investigation to acquire and study to acquire and understand new scientific or technological knowledge.Development phase refers to the phase during which the result of research phase or other knowledge is applied into certain projects or designs for the manufacturing of new or substantially improved material device and product before commercial manufacturing and use. 4. Criteria of capitalization of development phase expenditures Expenditures incurred during the research phase are recognized in profit or loss for the period when incurred. Expenditures incurred during the research phase shall be capitalized if they meet the following conditions at the same time. If the expenditures incurred during the development phase do not meet the following conditions they shall be included in the current period's profit and loss. (1) It is technically feasible to complete the intangible asset so that it can be used or sold. (2) The Company intent to complete the intangible asset and use or sell it. (3) The way intangible assets generate economic benefits including being able to prove that there is a market for the products produced by using the intangible assets or the intangible assets themselves has market. If the intangible assets will be used internally it should be able to prove that the intangible assets will be useful. (4) The company has sufficient technical financial and other resources to complete the development of the intangible asset and is able to use or sell the intangible asset. (5) The expenditure attributable to the development phase of the intangible asset can be measured reliably.If it is impossible to distinguish between expenditures in the research phase and expenditures in the development phase all research and development expenditures incurred shall be included in the current period's profit and loss. 160Bengang Steel Plates Co. Ltd. Annual Report 2024 (18) Impairment of long-term assets For long-term assets such as long-term equity investments investment property under the cost model fixed assets construction in progress right-of-use assets intangible assets with limited useful lives and oil gas assets etc. the Company shall perform impairment tests at the period end if there is clear indication of impairment. If the recoverable amounts of long-term assets are less than their carrying amounts the carrying amounts of the assets shall be written down to their recoverable amounts. The write-downs are recognized as impairment losses and charged to current profit and loss. The recoverable amounts of long-term assets are the higher of their fair values less costs to sell and the present values of the future cash flows expected to be derived from the assets. The Company shall estimate its recoverable amount on an individual basis. Where it is difficult to do so it shall determine the recoverable amount of the assets onthe basis of the asset group to which the asset belongs. The term "assets group” refers to a minimum combination of assets by which the cash flows could be generated independently The goodwill intangible assets with uncertain useful life and intangible assets not meeting the expected condition for use shall be subject to an impairment test at least at the end of each year.When the Company makes an impairment test of assets it shall as of the purchasing day apportion the carrying value of the business reputation formed by merger of enterprises to the relevant asset groups by a reasonable method. Where it is difficult to do so it shall be apportioned to the relevant combinations of asset groups. A related group of assets or combination of asset groups is an asset group or combination of asset groups that can benefit from the synergy effect of a business combination.When making an impairment test on the relevant asset groups or combination of asset groups containing business reputation if any evidence shows that the impairment of asset groups or combinations of asset groups is possible the Company shall first make an impairment test on the asset groups or combinations of asset groups not containing business reputation calculate the recoverable amount compare it with the relevant carrying value and recognize the corresponding impairment loss. Then the Company shall make an impairment test of the asset groups or combinations of asset groups containing business reputation and compare the carrying value of these asset groups or combinations of asset groups (including the carrying value of the business reputation apportioned thereto) with the recoverable amount. Where the recoverable amount of the relevant assets or combinations of the asset groups is lower than the carrying value thereof it shall recognize the impairment loss of the business reputation.Impairment losses on long-term assets shall not be reversed in subsequent accounting periods 161Bengang Steel Plates Co. Ltd. Annual Report 2024 once recognized. (19) Long-term deferred expense The long-term deferred expense refers to the expenses incurred but shall be borne by current and subsequent accounting period which is more than one year.The long-term deferred expense shall be amortized over its beneficiary period evenly (20) Contract liability When either party to a contract has performed the Company shall present the contract in the statement of financial position as a contract asset or a contract liability depending on the relationship between the Company’s performance and the customer’s payment. If a customer pays consideration or the Company has a right to an amount of consideration before the Company transfers a good or service to the customer the Company shall present the contract as a contract liability. Contract assets and contract liabilities under the same contract are disclosed in net amount. (21) Employee benefits 1. Accounting treatment for short employee benefit The Company shall recognise in the accounting period in which an employee provides service actually occurred short-term employee benefits as a liability with a corresponding charge to the profit or loss or cost of an asset for the current period.Payments made by an enterprise of social security contributions for employees payments of housing funds and union running costs employee education costs provided in accordance with relevant requirements shall in the accounting period in which employees provide services be calculated according to prescribed bases and percentages in determining the amount of employee benefits.The employee welfare expenses incurred by the company are included in the current profit and loss or related asset costs based on the actual amount when they actually occur. Among them non-monetary benefits are measured at fair value. 2. Accounting treatment of post-employment benefits (1) Defined contribution plan The Company shall recognize in the accounting period in which an employee provides service pension fund and unemployment fund for employees as a liability according to the 162Bengang Steel Plates Co. Ltd. Annual Report 2024 local government regulations. The amount shall be calculated according to local prescribed bases and percentages in determining the amount of employee benefits with a corresponding charge to the profit or loss or cost of an asset for the current period. In addition the Company also participates in the enterprise annuity plan/supplementary pension insurance fund approved by relevant state departments. The Company pays a certain proportion of the total salary of employees to the annuity plan/local social insurance agency and the corresponding expenses are included in the current profit and loss or related asset cost. (2) Defined benefit plan None 3. Accounting treatment of termination benefits The Company shall recognize an employee benefits liability for termination benefits with a corresponding charge to the profit or loss for the current period at the earlier of the following dates: when the Company cannot unilaterally withdraw the offer of termination benefits because of an employment termination plan or a curtailment proposal; or when the Company recognizes costs or expenses related to a restructuring that involves the payment of termination benefits. (22) Estimated liabilities The obligation pertinent to a contingency shall be recognized as an estimated liability when the following conditions are satisfied simultaneously: (1) That obligation is a current obligation of the enterprise; (2) It is likely to cause any economic benefit to flow out of the enterprise as a result of performance of the obligation; and (3) The amount of the obligation can be measured in a reliable way. The estimated debts shall be initially measured in accordance with the best estimate of the necessary expenses for the performance of the current obligation.To determine the best estimate an enterprise shall take into full consideration of the risks uncertainty time value of money and other factors pertinent to the Contingencies. If the time value of money is of great significance the best estimate shall be determined after discounting the relevant future outflow of cash.If there is a continuous range for the necessary expenses and if all the outcomes within this range are equally likely to occur the best estimate shall be determined in accordance with the average estimate within the range. 163Bengang Steel Plates Co. Ltd. Annual Report 2024 If there is not a sequent range for the necessary expenses and if the outcomes within this range are not equally likely to occur the best estimate shall be determined as follows: (1) If the Contingencies concern a single item it shall be determined in the light of the most likely outcome. (2) If the Contingencies concern two or more items the best estimate shall be calculated and determined in accordance with all possible outcomes and the relevant probabilities.When all or some of the expenses necessary for the liquidation of an estimated debts of an enterprise is expected to be compensated by a third party the compensation shall be separately recognized as an asset only when it is virtually certain that the reimbursement will be obtained.The amount recognized for the reimbursement shall not exceed the book value of the estimated debts.The company reviews the book value of the estimated liabilities on the balance sheet date. If there is conclusive evidence that the book value does not reflect the current best estimate the book value will be adjusted according to the current best estimate. (23) Revenue (1) The general principle of revenue recognition and measurement The company shall recognise revenue when (or as) the company satisfies a performance obligation when (or as) the customer obtains control of a promised good or service. Control of a promised good or service refers to the ability to direct the use of and obtain substantially all of the remaining benefits from it.If the contract contains two or more performance obligations the company shall allocate the transaction price to each individual performance obligation based on the relative proportion of the stand-alone selling price of the goods or services promised by each individual performance obligation on the date of the contract. The company measures revenue based on the transaction price allocated to each individual performance obligation.The transaction price is the amount of consideration to which the company expects to be entitled in exchange for transferring promised goods or services to a customer excluding amounts collected on behalf of third parties or amounts expected to be returned to customers.The company shall consider the terms of the contract and its customary business practices to determine the transaction price. When determining the transaction price the company shall consider the effects of all of the following: variable consideration the existence of a significant financing component in the contract non-cash consideration and consideration payable to a customer. The company determines the transaction price that includes variable consideration 164Bengang Steel Plates Co. Ltd. Annual Report 2024 at an amount that does not exceed the amount of accumulated recognized revenue that is unlikely to be materially reversed when the relevant uncertainty is eliminated. If there is a significant financing component in the contract the company shall recognise revenue at an amount that reflects the price that a customer would have paid for the promised goods or services if the customer had paid cash for those goods or services when (or as) they transfer to the customer and use the effective interest method to amortize the difference between the transaction price and the contract consideration during the contract period.The company transfers control of a good or service over time and therefore satisfies a performance obligation and recognises revenue over time if one of the following criteria is met. Otherwise the company satisfies the performance obligation at a point in time.(a) the customer simultaneously receives and consumes the benefits provided by the company’s performance as the company performs; (b) the company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or (c) the company’s performance does not create an asset with an alternative use to the company and the company has an enforceable right to payment for performance completed to date.The company shall recognise revenue over time by measuring the progress towards complete satisfaction of that performance obligation except where the performance progress cannot be reasonably determined. The company considers the nature of the goods or services and adopts the output method or the input method to determine the progress of performance. Where the performance progress cannot be reasonable determined but the company expects to recover the costs incurred in satisfying the performance obligation the company shall recognise revenue only to the extent of the costs incurred until such time that it can reasonably measure the outcome of the performance obligation.For performance obligations satisfied at a certain point in time the company shall recognises revenue at the point when the customer obtains control of the relevant goods or services. To determine the point in time at which a customer obtains control of a promised goods or services the company shall consider requirements as follows: (a) The company has a present right to payment for the promised goods or services and the customer is presently obliged to pay for that; (b) The company has transferred the legal title of the goods to the customer that is the customer has the legal title to the goods; (c) The company has transferred physical possession of the goods to the customer that is the customer has taken possession of the goods; (d) The company has transferred the significant risks and rewards of ownership of the goods to the customer that is the customer has the significant risks and rewards of ownership of the goods; 165Bengang Steel Plates Co. Ltd. Annual Report 2024 (e) The customer has accepted the promised goods or services.The Company determines whether it is the principal or agent when engaging in a transaction based on whether it has control over the goods or services before transferring them to the customer. If the Company is able to control the goods or services before transferring them to the customer the Company is the principal and recognizes revenue based on the total consideration received or receivable; otherwise the Company is the agent and recognizes revenue based on the amount of commissions or fees it expects to be entitled to receive. (2) The specific criteria of revenue recognition and measurement Commodity sales contracts between companies and customers usually only include performance obligations for the transfer of steel and other commodities. This type of performance obligation is a performance obligation performed at a certain point in time. The Company recognizes revenue when the customer obtains control of the relevant goods or services. When judging whether the customer has obtained control of goods or services the company considers the following signs: The company obtains the current right of collection of receivables the legal ownership of the goods is transferred to the customer the physical assets of the goods are transferred to the customer the company transfers the main risks and rewards of the ownership of the goods to the customer and the customer has accepted the goods. (24) Contract costs Contract costs include costs to fulfill a contract and incremental costs of obtaining a contract.If the costs incurred in fulfilling a contract with a customer are not within the scope of another Standard for example Inventories Property Plant and Equipment or Intangible Assets the company shall recognise an asset from the costs incurred to fulfil a contract only if those costs meet all of the following criteria: (a) the costs relate directly to a contract or to an expected contract; (b) the costs generate or enhance resources of the Company that will be used in satisfying performance obligations in the future; and (c) the costs are expected to be recovered.The company shall recognise as an asset the incremental costs of obtaining a contract with a customer if the company expects to recover those costs.An asset recognised in accordance with contract costs shall be amortised in consistent with the transfer to the customer of the goods or services to which the asset relates. The company may 166Bengang Steel Plates Co. Ltd. Annual Report 2024 recognise the incremental costs of obtaining a contract as an expense when incurred if the amortisation period of the asset is one year or less.The company shall recognise an impairment loss in profit or loss to the extent that the carrying amount of an asset related to contract assets exceeds: (a) the remaining amount of consideration that the company expects to receive in exchange for the goods or services to which the asset relates; less (b) the costs that relate directly to providing those goods or services and that have not been recognised as expenses.The company shall recognise in profit or loss a reversal of some or all of an impairment loss previously recognised when the impairment conditions no longer exist or have improved. The increased carrying amount of the asset shall not exceed the carrying amount that if no impairment loss had been recognised previously. (25) Government Subsidies 1. Types A government subsidy means the monetary or non-monetary assets obtained free of charge by the Company from the government. Government subsidies consist of the government subsidies pertinent to assets and government subsidies pertinent to income.Government subsidies related to assets are government subsidies whose primary condition is that an entity qualifying for them should purchase construct or otherwise acquire long-term assets. The government subsidies related to incomes refers to government subsidies other than those related to assets.The standard of the Company recognizing the government subsidies related to assets is: an entity qualifying for them should purchase construct or otherwise acquire long-term assets.The standard of the Company recognizing the government subsidies related to income is: In addition to government subsidies related to assets government subsidies that have been clearly targeted for subsidies.For government documents that do not specify the object of the grant the Company classifies the government subsidy as asset-related or income-related based on the following judgment: if it can form a long-term asset the portion of the government subsidy that corresponds to the value of the asset is treated as an asset related government subsidy and the rest as an income-related government subsidy; if it is difficult to distinguish the government subsidy as a whole is treated as an income related government subsidy. 2. Recognition 167Bengang Steel Plates Co. Ltd. Annual Report 2024 Government subsidies are recognized when the Company is able to meet the conditions attached to them and is able to receive them. 3. Accounting treatment Government subsidies related to assets shall be recognized by deducting the subsidies at the caring amount of the assets or recognized as deferred income. Subsidies that recognized as deferred income shall be recognized in profit or loss on a systematic basis over the periods during the useful lives of the relevant assets (Subsidies related to daily activities should be recorded in Other Income. Subsidies that unrelated to daily activities should be recorded in Non-operating Income).The government subsidies related to incomes to compensate future expenses shall be recognized as deferred income and transferred to current profit or loss (Subsidies related to daily activities should be recorded in Other Income. Subsidies that unrelated to daily activities should be recorded in Non-operating Income) in the period during which the expenses compensation is recognized or deduct relevant cost or loss. Government subsidies to compensate expenses or losses already incurred shall be recognized in current profit and loss (Subsidies related to daily activities should be recorded in Other Income.Subsidies unrelated to daily activities should be recorded in Non-operating Income) or deduct relevant cost or loss.The policy discount loans obtained by the company are divided into the following two situations and are separately accounted for: (a) The government allocates discounted funds to the loan bank and the loan bank provides loans to the company at a policy preferential interest rate. The preferential interest rate is used to calculate the relevant borrowing costs.(b) If the government directly allocates the discounted funds to the company the company will offset the relevant borrowing costs with the corresponding discounts directly accounted for the current profit or loss or recognized as deferred income. (26) Deferred tax assets and deferred tax liabilities Income tax includes current income tax and deferred income tax. Except for income tax arising from business combinations and transactions or events directly recorded in owners' equity (including other comprehensive income) the Company records current income tax and deferred income tax in current profit or loss.Deferred tax assets and deferred tax liabilities are calculated based on the difference between the tax bases of assets and liabilities and their carrying amounts (temporary differences).Income tax includes current income tax and deferred income tax. Except for income tax arising from business mergers and transactions or events that are directly included in owner's equity (including other comprehensive income) the company will include current income tax and deferred income tax in current profit and loss.Deferred income tax assets and deferred income tax liabilities are calculated and confirmed based on the difference (temporary difference) between the tax base of assets and liabilities and their book value.An enterprise shall recognize the deferred income tax assets arising from a deductible temporary difference to the extent of the amount of the taxable income which it is most likely to be obtained and which can be deducted from the deductible temporary difference. As for any deductible loss or tax deduction that can be carried forward to the next year the corresponding deferred income tax assets shall be determined to the extent that the amount of future taxable income to be offset by the deductible loss or tax deduction to be likely obtained. 168Bengang Steel Plates Co. Ltd. Annual Report 2024 All taxable temporary differences shall be recognized as deferred tax liabilities with certain limited exceptions.Exceptions when deferred tax assets and deferred tax liabilities are not recognized include: - Initial recognition of goodwill; - A transaction or event that is neither a business combination nor affects accounting profit and taxable income (or deductible loss) when it occurs and the assets and liabilities initially recognized do not result in equal taxable temporary differences and deductible temporary differences.For taxable temporary differences related to investments in subsidiaries associates and joint ventures deferred income tax liabilities are recognized unless the company can control the timing of the reversal of the temporary differences and the temporary differences are likely not to be transferred back in the foreseeable future. For deductible temporary differences related to investments in subsidiaries associates and joint ventures when the temporary differences are likely to be reversed in the foreseeable future and are likely to be used to deduct the taxable income of deductible temporary differences in the future income tax assets are recognized.On the balance sheet date deferred income tax assets and deferred income tax liabilities are measured at the applicable tax rate during the period when the relevant assets are expected to be recovered or the relevant liabilities are expected to be recovered in accordance with the provisions of the tax law.On the balance sheet date the company reviews the book value of deferred income tax assets.If it is probable that sufficient taxable income cannot be obtained in the future to offset the benefits of deferred income tax assets the book value of the deferred income tax assets shall be written down. When it is possible to obtain sufficient taxable income the reduced amount shall be reversed.When the Company has the statutory right to offset and intend to offset or obtain assets and pay off liabilities at the same time the current income tax assets and current income tax liabilities are presented at the net amount after offsetting.An entity shall offset deferred tax assets and deferred tax liabilities if and only if: (a) the entity has a legally enforceable right to set off current tax assets against current tax liabilities; and (b) deferred income tax assets and deferred income tax liabilities are related to income taxes levied by the same tax collection and administration department on the same taxpayer or to different taxpayers but in each future period of significant deferred income tax assets and liabilities reversal the taxpayers involved intend to settle the current income tax assets and liabilities on a net basis or to acquire assets and settle liabilities at the same time. (27) Leases Lease refers to a contract in which the lessor transfers the right to use the asset to the lessee within a certain period of time to obtain consideration.On the starting date of the contract the company assesses whether the contract is a lease or contains a lease. If the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration the contract is or contains a lease.For a contract that contains a lease component and one or more additional lease or non-lease components a lease shall allocate the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand- 169Bengang Steel Plates Co. Ltd. Annual Report 2024 alone price of the non-lease components. 1. The company as the lessee (1) Right-of-use assets On the start date of the lease term the company recognizes the right-of-use asset for leases other than short-term leases and low-value asset leases. Right-of-use assets are initially measured at cost.This cost includes: * The initial measurement amount of the lease liability; * If there is a lease incentive for the lease payment paid on or before the start of the lease term the relevant amount of the lease incentive already enjoyed shall be deducted; * The initial direct expenses incurred by the company; * The company expects to incur costs for dismantling and removing leased assets restoring the site where leased assets are located or restoring leased assets to the state agreed upon in the lease terms but does not include the costs incurred for the production of inventory.The company uses the straight-line method to depreciate the right-of-use assets. If it can be reasonably determined that the ownership of the leased asset will be obtained at the end of the lease term the company shall depreciate the leased asset during the remaining useful life; otherwise the leased asset will be depreciated during the shorter period of the lease term and the remaining useful life of the leased asset .The company determines whether the right-of-use asset has been impaired in accordance with the principles described in "3. (18) Long-term asset impairment" in this note and conducts accounting treatment for the identified impairment loss. (2) Lease liabilities At the beginning of the lease term the company recognizes lease liabilities for leases other than short-term leases and leases of low-value assets. Lease liabilities are initially measured based on the present value of the payments that are not paid at that date. Lease payments include: 1) Fixed payment (including in-substance fixed payment) less any lease incentives receivable; 2) Variable lease payments that depend on an index or a ratio; 3) Amounts expected to be payable by the lease under residual value guarantees; 4) The exercise price of the purchase option if the lease is reasonably certain to exercise that option; 170Bengang Steel Plates Co. Ltd. Annual Report 2024 5) Payments of penalties for terminating the lease if the lease term reflects the lessee exercising an option to terminate the lease; The company uses the interest rate implicit in the lease as the discount rate but if the interest rate implicit in the lease cannot be reasonably determined the company's incremental borrowing interest rate is used as the discount rate.The company calculates the interest expense of the lease liability during each period of the lease term according to a fixed periodic interest rate and includes it in the current profit and loss or the cost of related assets.Variable lease payments that are not included in the measurement of lease liabilities are included in the current profit and loss or the cost of related assets when they occur.After the start of the lease term if the following circumstances occur the company re-measures the lease liability and adjusts the corresponding right-of-use asset. If the book value of the right-of-use asset has been reduced to zero but the lease liability still needs to be further reduced the difference shall be included in the current profit and loss: * When the evaluation result or actual exercise situation of the purchase option renewal option or termination option changes the company remeasures the lease liability based on the present value calculated by the lease payment after the change and the revised discount rate; * When the actual fixed payment changes the expected payable amount of the guarantee residual value changes or the index or ratio used to determine the lease payment changes the company calculates the present value based on the changed lease payment and the original discount rate to remeasure the lease liability. However if changes in lease payments originate from changes in floating interest rates the revised discount rate is used to calculate the present value. (3) Short-term leases and low-value asset leases The company chooses not to recognize right-of-use assets and lease liabilities for short-term leases and low-value asset leases and calculates the relevant lease payments in the current profit and loss or related asset costs on a straight-line basis during each period of the lease term.Short-term lease refers to a lease that does not include purchase options for a lease period not exceeding 12 months at the beginning of the lease period. Low-value asset leasing refers to a lease with a lower value when a single leased asset is a new asset. If the company subleases or expects to sublease the leased assets the original lease is not a low-value asset lease. (4) Lease modifications The lease shall account for a lease modification as a separate lease if both: * The modification increases the scope of the lease by adding the right to use one or more 171Bengang Steel Plates Co. Ltd. Annual Report 2024 underlying assets; and * the consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustment to that stand-alone price to reflect the circumstances of the particular contract.For a lease modification that is not accounted for as a separate lease at the effective date of the lease modification a lessee shall allocate the consideration in the modified contract determine the lease term of the modified lease and remeasure the lease liabilities by discounting the revised lease payments using a revised discount rate.For a lease modification that is not accounted for as a separate lease the lessee shall account for the remeasurement of the lease liabilities by decreasing the carrying amount of the right- of-use assets to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease. The lessee shall recognize in profit or loss any gain or loss relating to the partial or full termination of the lease; or by making a corresponding adjustment to the right-of-asset for all other lease modifications. 2. The company as the lessor On the commencement date of the lease the company divides the lease into finance lease and operating lease. Finance lease refers to a lease in which almost all the risks and rewards related to the ownership of the leased asset are transferred regardless of whether the ownership is ultimately transferred. Operating leases refer to leases other than financial leases. When the company acts as a sublease lessor it classifies subleases based on the right-of-use assets generated from the original lease. (1) Accounting treatment of operating leases The lease receipts of operating leases are recognized as rental income in each period of the lease term according to the straight-line method. The company capitalizes the initial direct costs incurred related to operating leases and allocates them to the current profit and loss on the same basis as the recognition of rental income during the lease term. Variable lease payments that are not included in the lease receipts are included in the current profit and loss when they actually occur. (2) Accounting treatment of finance leasing On the start date of the lease the company recognizes the finance lease receivables for the finance lease and terminates the recognition of the finance lease assets. When the company initially measures the finance lease receivables the net lease investment is taken as the entry 172Bengang Steel Plates Co. Ltd. Annual Report 2024 value of the financial lease receivables. The net lease investment is the sum of the unguaranteed residual value and the present value of the lease payment not yet received at the beginning of the lease term discounted at the interest rate implicit in the lease.The company calculates and recognizes the interest income for each period of the lease term based on a fixed periodic interest rate. The derecognition and impairment of finance lease receivables shall be accounted for in accordance with "3. (10) Financial Instruments" in this Note.Variable lease payments that are not included in the measurement of the net lease investment are included in the current profit or loss when they actually occur.A lessor shall account for a modification to a finance lease as a separate lease if both: * The modification increases the scope of the lease by adding the right to use one or more underlying assets; * The consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract.For a modification to a finance lease that is not accounted for as a separate lease a lessor shall account for the modification as follows: * If the lease would have been classified as an operating lease had the modification been in effect at the inception date the lessor shall account for the lease modification as a new lease from the effective date of the modification; and measure the carrying amount of the underlying assets as the net investment in the lease immediately before the effective date of the lease modification.* If the change takes effect on the lease start date the lease will be classified as a financiallease and the company will perform accounting treatment in accordance with the policy of “3. (10) Financial Instruments” in this Note on the modification or re-negotiation of the contract. 3. Sale and leaseback transaction The company evaluates and determines whether the asset transfer in the sale and leaseback transaction is a sale in accordance with the principles described in "3. (23) Revenue" of this Note. (1) As the lessee If the transfer of an asset in the sale and leaseback transaction is a sale the company as the lessee measures the right-of-use asset arising from the leaseback at the proportion of the previous carrying amount of the asset that relates to the right-of-use retained by the lessee and 173Bengang Steel Plates Co. Ltd. Annual Report 2024 recognize only the amount of any gain or loss that relates to the rights transferred to the lessor.For details on the subsequent measurement of right-of-use assets and lease liabilities and lease changes after the commencement date of the lease term please refer to Note III. (27) Leases 1.The Company as Lessee. When subsequently measuring the lease liabilities arising from a sale and leaseback the Company determines the lease payments or the modified lease payments in a manner that does not result in the recognition of gains or losses related to the right of use acquired through the leaseback.If the asset transfer in the sale and leaseback transaction does not belong to the sale the company as the lessee continues to recognize the transferred assets and at the same time recognize a financial liability equal to the transfer proceeds. For the accounting treatment of financial liabilities please refer to "3. (10) Financial Instruments" in this note. (2) As a lessor If the asset transfer in the sale and leaseback transaction is a sale the company acts as the lessor to account for the purchase of the asset and the asset lease is accounted for in accordance with the aforementioned "2. The company as the lessor" policy; in the sale and leaseback transaction If the transfer of assets is not a sale the company as the lessor does not recognize the transferred assets but recognizes a financial asset equal to the transfer proceeds. For the accounting treatment of financial assets please refer to "3. (10) Financial Instruments" in this note. (28) Debt restructuring 1. The company as the creditor The Company terminates the recognition of claims when the contractual right to collect cash flows from the claims terminates. If debt is restructured by using assets to pay off debts or by converting debts into equity instruments the company will recognize the relevant assets when they meet their definition and recognition conditions.If debt restructuring is carried out by repaying debts with assets the transferred non-financial assets shall be measured at cost at initial recognition. The cost of inventories includes the fair value of waived claims and other costs directly attributable to the asset incurred in bringing the asset to its present location and condition such as taxes transportation handling charges insurance etc. The cost of an investment in an associate or joint venture includes the fair value of waived claims and other costs such as taxes directly attributable to the asset. The cost of investment property includes the fair value of claims relinquished and other costs such as taxes directly attributable to the asset. The cost of fixed assets includes the fair value of waived claims and other costs directly attributable to the asset incurred before the asset is ready for its intended use such as taxes transportation costs handling charges installation costs 174Bengang Steel Plates Co. Ltd. Annual Report 2024 professional service fees etc. The cost of biological assets includes the fair value of waived claims and other costs directly attributable to the asset such as taxes transportation costs insurance premiums etc. The cost of an intangible asset includes the fair value of claims waived and other costs such as taxes that are directly attributable to bringing the asset to its intended use. If a debt restructuring by converting debt into equity instruments results in the creditor converting its claims into equity investments in associates or joint ventures the Company measures its initial investment cost at the fair value of the claims waived and other costs such as taxes directly attributable to the asset. The difference between the fair value and the book value of the waived claims is included in the current profit and loss. If the debt restructuring is carried out by modifying other terms the Company shall recognize and measure the restructured claims in accordance with "III. (10) Financial Instruments" of this Note.When multiple assets are used to settle debts or for debt restructuring the Company shall first recognize and measure the financial assets acquired and the restructured claims in accordance with Note III. (10) Financial Instruments. It shall then allocate the net amount of the fair value of the waived claims after deducting the recognized amounts of the acquired financial assets and the restructured claims in accordance with the fair value ratio of the various assets other than the acquired financial assets and on this basis determine the cost of each asset separately in accordance with the above method. The difference between the fair value and the carrying amount of the waived claim should be included in the current profit and loss. 2. The company as the debtor The Company derecognizes a debt when the present obligation for the debt is discharged.If debt restructuring is carried out by settling debts with assets the Company shall terminate the recognition when the relevant assets and the debts settled meet the conditions for termination of recognition and the difference between the book value of the debts settled and the book value of the transferred assets shall be included in the current profit and loss.In case of debt restructuring by converting debt into equity instruments the Company shall derecognize the debts paid when they meet the derecognition conditions. Equity instrument shall be measured at fair value at initial recognition. If the fair value of an equity instrument cannot be measured reliably it is measured at the fair value of the debt settled. The difference between the carrying amount of the debt settled and the amount recognized as an equity instrument should be recognized in the current period's profit or loss.If debt restructuring is carried out by modifying other terms the Company shall recognize and 175Bengang Steel Plates Co. Ltd. Annual Report 2024 measure the restructured debt in accordance with “III. (10) Financial Instruments” of this Note.If multiple assets are used to repay debts or a combination is used to restructure debt the company shall confirm and measure equity instruments and restructured debts in accordance with the aforementioned methods. The difference between the carrying amount of the debt settled and the sum of the carrying amount of the transferred assets and the recognized amount of the equity instruments and restructured debts is included in the current period's profit and loss. (29) Major accounting estimates and judgments When preparing financial statements the Company's management needs to use estimates and assumptions which will affect the application of accounting policies and the amount of assets liabilities income and expenses. Actual conditions may differ from these estimates. The management of the company continuously evaluates the judgment of key assumptions and uncertainties involved in the estimation and the impact of changes in accounting estimates will be recognized in the current and future periods.The main uncertainties in the estimated amount are as follows: 1. Measurement of expected credit losses The company calculates the expected credit loss through the default risk exposure and the expected credit loss rate and determines the expected credit loss rate based on the default probability and the default loss rate. When determining the expected credit loss rate the company uses internal historical credit loss experience and other data and adjusts the historical data in combination with current conditions and forward-looking information.When considering forward-looking information the indicators used by the Company include the risk of economic downturn the expected increase in unemployment rate changes in the external market environment technological environment and customer conditions. The Company regularly monitors and reviews assumptions related to the calculation of expected credit losses. 2. Inventory ImpairmentAs mentioned in note 3 (11) Inventory under “3 Significant accounting policies andaccounting estimates” the Company regularly estimates the net realizable value of the inventory and recognizes the difference in inventory cost higher than the net realizable value.When estimating the net realizable value of inventory the Company considers the purpose of holding the inventory and uses the available information as the basis for estimation 176Bengang Steel Plates Co. Ltd. Annual Report 2024 including the market price of the inventory and the Company's past operating costs. The actual selling price completion cost sales expenses and taxes of the inventory may change according to changes in market sales conditions production technology or the actual use of the inventory. Therefore the amount of inventory depreciation reserve may change according to the above reasons. Adjustments to the inventory impairment will affect the current profit and loss. 3. Impairment of other assets except inventory and financial assets As mentioned in note 3 (18) Long-term Asset Impairment the company performs an impairment assessment on assets other than inventory and financial assets on the balance sheet date to determine whether the recoverable amount of the asset has fallen to a lower level than its book value. If the situation shows that the book value of the long-term assets may not be fully recovered the relevant assets will be deemed to be impaired and the impairment loss will be recognized accordingly.The recoverable amount is the higher of the net value of the fair value of the asset (or asset group) minus the disposal expenses and the present value of the asset (or asset group) 's expected future cash flow. Because the Company cannot reliably obtain the public market price of assets (or asset groups) and cannot reliably and accurately estimate the fair value of assets. Therefore the Company regards the present value of the expected future cash flow as the recoverable amount. When estimating the present value of future cash flows it is necessary to make a significant judgment on the output selling price related operating costs of the products produced by the asset (or asset group) and the discount rate used in calculating the present value. The Company will use all available relevant information when estimating the recoverable amount including the prediction of output selling price and related operating costs based on reasonable and supportable assumptions. 4. Depreciation and amortization of assets such as fixed assets and intangible assets As described in note 3 (14) Fixed Assets and note 3 (17) Intangible Assets the company shall accrue depreciation for the fixed assets and amortization for intangible assets within the useful life after considering their residual value. The company regularly reviews the useful life of related assets to determine the amount of depreciation and amortization expenses to be included in each reporting period. The useful life of assets is determined by the company based on past experience with similar assets and in combination with anticipated technological changes. If the previous estimates change significantly the depreciation and amortization expenses will be adjusted in the future. 5. Deferred tax assets 177Bengang Steel Plates Co. Ltd. Annual Report 2024 When it is estimated that sufficient taxable income can be obtained in the future to use the unrecovered tax losses and deductible temporary differences the relevant deferred tax assets are calculated and confirmed on the basis of the applicable income tax rate during the period when the asset is expected to be recovered and the amount of taxable income is limited to deductible tax losses and deductible temporary differences likely to be obtained by the Company. The Company needs to use judgment to estimate the time and amount of future taxable income and make reasonable estimates and judgments on the future applicable income tax rate according to the current tax policy and other related policies to determine the deferred tax assets that should be recognized. If the time and amount of profits actually generated in the future period or the actual applicable income tax rate are different from the management's estimate the difference will have an impact on the amount of deferred tax assets. (30) Criteria of Materiality Items Materiality Criteria Significant The company considers accounts receivables exceeding RMB 5 million as Receivables significant accounts receivables.Significant Accounts The company considers accounts payables exceeding RMB 5 million as Payables significant accounts payables.Significant Other The company considers other payables exceeding RMB 5 million as Payables significant other payables.The company regards the projects with the highest amount transferred to Significant fixed assets or the top 10 projects with the final balance of the current period Construction in and the amount exceeding RMB 50 million as significant construction in Progress progress.Significant Joint The company considers joint ventures or associated companies with an Ventures or Associated ending balance of more than RMB 100 million as important joint ventures or Companies associated companies.Subsidiaries whose total assets/total revenue/total profit exceed 15% of the Significant group's total assets/total revenue/total profit are considered as significant Subsidiaries subsidiaries. (31) Change of significant accounting policy and accounting estimate 1. Change of major accounting policy during this reporting period (4) Implementation of Interpretation of Enterprise Accounting Standards No. 17 178Bengang Steel Plates Co. Ltd. Annual Report 2024 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.D. 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 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.E. 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 179Bengang Steel Plates Co. Ltd. Annual Report 2024 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.F. 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. (5) 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. 180Bengang Steel Plates Co. Ltd. Annual Report 2024 (6) 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 theEnterprise Accounting Standards" (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. 6. Taxes (1) Major type of taxes and corresponding tax rates Tax Taxation Method Tax Rate The balance of output VAT calculated based on product sales and taxable Value-added Tax (VAT) services revenue in accordance with the 6% 9% 13% tax laws after subtracting the deductible input VAT of the period City maintenance and construction tax Based on VAT and business tax actually paid 5% 7% Enterprise income tax Based on taxable income See the table below for details Notes to taxpayers with different corporate income tax rates: Name of the taxpayers Income tax rate (%) Bengang Steel Plates Co. Ltd 15 Shanghai Bengang Metallurgy Science and Technology Co. Ltd. 25 181Bengang Steel Plates Co. Ltd. Annual Report 2024 Name of the taxpayers Income tax rate (%) Benxi Bengang Steel Sales Co. Ltd. 25 Bengang Posco Cold-rolled Sheet Co. Ltd. 15 Tianjin Bengang Steel & Iron Trading Co. Ltd. 25 Changchun Bengang Steel & Iron Sales Co. Ltd. 25 Yantai Bengang Steel & Iron Sales Co. Ltd. 25 Guangzhou Bengang Steel & Iron Trading Co. Ltd. 25 Dalian Benruitong Automobile Material Technology Co. Ltd. 25 Shenyang Bengang Metallurgical Science and Technology Co. Ltd. 25 North Hengda Logistics Co. Ltd 25 (2) Tax Preference 1. The company has obtained the high-tech enterprise certificate certificate number: GR202421001555; valid from November 27 2024 to November 27 2027. The company pays corporate income tax at a reduced rate of 15%. 2. Benxi Posco Cold-Rolled Sheet Co. Ltd. the subsidiary of the Company has obtained the High-tech Enterprise Certificate certificate number: GR202321001624; valid from December 20 2023 to December 20 2026. Benxi Steel Posco Cold-Rolled Sheet Co. Ltd.pays corporate income tax at a reduced tax rate of 15%. 3. On December 30 2021 the Ministry of Finance and the State Administration of Taxation issued the "Announcement on Improving the Value-Added Tax Policy for Comprehensive Utilization of Resources" (Announcement No. 40 of the Ministry of Finance and the State Administration of Taxation in 2021). The announcement will take effect on March 1 2022.The original "Notice of the Ministry of Finance and the State Administration of Taxation on Issuing the "Catalogue of Value-Added Tax Preferential Policies for Comprehensive Utilization of Resources Products and Services" (Finance and Taxation [2015] No. 78) will be abolished at the same time except for "technical standards and related conditions". The electricity and heat produced and sold by the Energy Development Branch of Benxi Iron and Steel Co. Ltd. a branch of the Company are items listed in the "Catalogue of Value-Added Tax Preferential Terms for Comprehensive Resource Utilization Products and Services" and enjoy the value-added tax refund policy. 4. On September 3 2023 the Ministry of Finance and the State Administration of Taxation issued the "Announcement on the VAT Surcharge Deduction Policy for Advanced Manufacturing Enterprises" (Announcement No. 43 of the Ministry of Finance and the State Administration of Taxation in 2023). From January 1 2023 to December 31 2027 the announcement allows advanced manufacturing enterprises to deduct the payable VAT by 182Bengang Steel Plates Co. Ltd. Annual Report 2024 adding 5% to the current deductible input tax. Benxi Posco Cold Rolled Sheet Co. Ltd. a subsidiary of our company belongs to the advanced manufacturing industry and enjoys the VAT surplus deduction policy. 183Bengang Steel Plates Co. Ltd. Annual Report 2024 7. Notes to the consolidated financial statements (1) Cash at bank and on hand Items 2024/12/31 2023/12/31 Cash on hand Digital Currency Cash at bank 363006448.43 793397404.65 Other monetary funds 863683251.57 1010372066.67 Funds placed in a finance company account 1227198770.48 406288003.73 Total 2453888470.48 2210057475.05 Including：Total amount deposited abroad Funds deposited overseas with restrictions on repatriation Notes: As at 31 December 2024 bank acceptance deposit of RMB 863683251.57 was not recognized as cash and cash equivalents in the cash flow statement. (2) Notes receivable 1. Notes receivable disclosed by category Items 2024/12/31 2023/12/31 Bank acceptance bill 241529481.42 368249725.20 Commercial acceptance bill 365750000.00 86157718.82 Total 607279481.42 454407444.02 184Bengang Steel Plates Co. Ltd. Annual Report 2024 2. Notes receivable disclosed by bad debt accrual method 2024/12/312023/12/31 Provision for bad Carrying amount Provision for bad debts Carrying amount Items debts Book value Book value Bad debts Percentage Bad debts Amount Percentage (%) Amount Amount Amount ratio (%) (%) ratio (%) Provision for bad debts individually Provision for bad debts based on 607279481.42100.00607279481.42454407444.02100.00454407444.02 portfolio of credit risk characteristics Total 607279481.42 100.00 607279481.42 454407444.02 100.00 454407444.02 185Bengang Steel Plates Co. Ltd. Annual Report 2024 Provision for bad debts based on portfolio of credit risk characteristics Portfolio items: 2024/12/31 Items Notes receivable Provision for bad debts Bad debts ratio (%) Commercial acceptance bill 365750000.00 Bank acceptance bill 241529481.42 Total 607279481.42 3. The pledged acceptance bill at the year-end Items Notes receivable pledged at the end of period Bank acceptance bill 165968800.17 Commercial acceptance bill Total 165968800.17 4. The amount of notes receivable endorsed over or discounted but not yet matured at the year-end Amount terminated at the Amount was not terminated Items end of the period at the end of the period Bank acceptance bill 3181702865.55 75575335.70 Commercial acceptance bill 240750000.00 Total 3181702865.55 316325335.70 (3) Accounts receivable 1. Accounts receivable disclosed by aging Items 2024/12/31 2023/12/31 Within 1 year (inclusive) 478210867.53 1048656782.03 1-2 years (inclusive) 5786445.58 322945580.33 2-3 years (inclusive) 28559402.34 647190.77 3-4 years (inclusive) 557413.41 5690114.98 4-5 years (inclusive) 5592931.88 300882005.30 over 5 years 379435859.17 98724184.94 186Bengang Steel Plates Co. Ltd. Annual Report 2024 Items 2024/12/31 2023/12/31 Subtotal 898142919.91 1777545858.35 Less: Provision for bad debts 396658838.18 448198723.86 Total 501484081.73 1329347134.49 187Bengang Steel Plates Co. Ltd. Annual Report 2024 2. Accounts receivable disclosed by the bad debt accrual method 2024/12/312023/12/31 Gross carrying amount Provision for bad debts Gross carrying amount Provision for bad debts Bad Items Percentage debts Book value Percentage Percentage Book value Amount Amount Amount Amount (%) ratio (%) (%) (%) Tested for impairment 334963124.35 37.30 334963124.35 100.00 353419325.80 19.88 353419325.80 100.00 individually Tested for impairment 563179795.56 62.70 61695713.83 10.95 501484081.73 1424126532.55 80.12 94779398.06 6.66 1329347134.49 by portfolio Include: Portfolio 1: Aging 563179795.56 62.70 61695713.83 10.95 501484081.73 1423311996.53 80.07 94779398.06 6.66 1328532598.47 portfolio 188Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/312023/12/31 Gross carrying amount Provision for bad debts Gross carrying amount Provision for bad debts Bad Items Percentage debts Book value Percentage Percentage Book value Amount Amount Amount Amount (%) ratio (%) (%) (%) Portfolio 2: Risk-free 814536.02 0.05 814536.02 portfolio Total 898142919.91 100.00 396658838.18 501484081.73 1777545858.35 100.00 448198723.86 1329347134.49 189Bengang Steel Plates Co. Ltd. Annual Report 2024 Significant accounts receivables tested for impairment individually: 2024/12/312023/12/31 Bad Company Carrying Provision for debts Carrying Provision for Reason amount bad debts amount bad debts ratio (%) Benxi Nanfen Xinhe Metallurgical Furnace 48196244.68 48196244.68 100.00 Discontinued 48196244.68 48196244.68 Material Co. Ltd Brilliance Automotive Group 286766879.67 286766879.67 100.00 Bankruptcy 305223081.12 305223081.12 Holdings Co. Ltd.Total 334963124.35 334963124.35 353419325.80 353419325.80 Provision for bad debts based on portfolio of credit risk characteristics Provision for bad debts by portfolio: Aging analysis 2024/12/31 Items Account Receivable Provision for bad debts Bad debt ratio（%） Within 1 year 478210867.534782108.691.00 (inclusive) 1-2 years (inclusive) 5786445.58 578644.56 10.00 2-3 years (inclusive) 28559402.34 5711880.47 20.00 3-4 years (inclusive) 557413.41 557413.41 100.00 4-5 years (inclusive) 748799.87 748799.87 100.00 over 5 years 49316866.83 49316866.83 100.00 Total 563179795.56 61695713.83 3. The provision for bad debts accrued reversed or recovered in the current period 190Bengang Steel Plates Co. Ltd. Annual Report 2024 Changes during the current period Write-off Items 2023/12/31 Reversed or Other 2024/12/31 Accrued or Write- recovered changes back Provision for bad 448198723.86 -32700419.15 18456201.45 383265.08 396658838.18 debts Total 448198723.86 -32700419.15 18456201.45 383265.08 396658838.18 Significant amount of bad debt provision recovered or reversed during the period: Basis for determining Reversed or Recovered the original bad debt Company Reason recovered method provision and its reasonableness Brilliance Debt restructuring Automotive Group 18456201.45 Repayment Bank deposit agreements Holdings Co. Ltd.Total 18456201.45 4. Accounts receivable has been written off this year. Item Write-off amount Actual write-off of accounts receivable 383265.08 5. Top five debtors and contract assets at the end of the period Accounts Contract Percentag Provision for Company receivable as at assets at Total e(%) bad debts 2024/12/312024/12/31 Brilliance Auto Group Holding 286766879.67 286766879.67 31.93 286766879.67 Co. Ltd.Bengang Group 253981286.94253981286.9428.282539812.87 International 191Bengang Steel Plates Co. Ltd. Annual Report 2024 Accounts Contract Percentag Provision for Company receivable as at assets at Total e(%) bad debts 2024/12/312024/12/31 Economy and Trade Co. Ltd.Coal Chemical Industry (Group) 56946219.86 56946219.86 6.34 569462.20 Co. Ltd.Benxi Nanfen Xinhe Metallurgical 48196244.68 48196244.68 5.37 48196244.68 Furnace Material Co. Ltd Benxi Steel Refractory 44159945.78 44159945.78 4.92 5668766.08 Material Co. Ltd.Total 690050576.93 690050576.93 76.83 343741165.50 (4) Accounts receivable financing 1. Accounts receivable financing by category Items 2024/12/31 2023/12/31 Notes Receivable 64399942.70 806822622.43 Accounts Receivable Total 64399942.70 806822622.43 192Bengang Steel Plates Co. Ltd. Annual Report 2024 2. Changes in Accounts Receivable Financing and Fair Value During the Period Accumulated loss allowances Termination during the Item 2023/12/31 Increase Other changes 2024/12/31 recognized in other current period comprehensive income Notes Receivable 806822622.43 13266508314.98 14008930994.71 64399942.70 Total 806822622.43 13266508314.98 14008930994.71 64399942.70 193Bengang Steel Plates Co. Ltd. Annual Report 2024 (5) Prepayments 1. Prepayments disclosed by aging 2024/12/312023/12/31 Aging Percentage Percentage Amount Amount (%)(%) Within 1 year 370426337.8394.54649310499.3995.89 (inclusive) 1-2 years (inclusive) 8643434.04 2.21 22062469.17 3.26 2-3 years (inclusive) 10372837.63 2.65 3389343.94 0.50 Over 3 years 2380526.37 0.61 2377875.91 0.35 Total 391823135.87 100.00 677140188.41 100.00 Notes: There were no outstanding prepayments over 1 year. 2. Top five prepaid companies at the end of the period Name of the company 2024/12/31 Percentage (%) Shanxi Coking Coal Group Coal Coke Sales Co. Ltd. 81108017.56 20.70 China Railway Shenyang Bureau Group Co. Ltd. 73390555.8918.73 Shenyang Railway Logistics Center Shanxi Coking Coal Energy Group Co. Ltd. 58906630.23 15.03 Shanxi Coking Coal Group Co. Ltd. 28876665.39 7.37 China Railway Harbin Bureau Group Co. Ltd. Harbin 28442605.107.26 Railway Logistics Center Total 270724474.17 69.09 (6) Other receivables Items 2024/12/31 2023/12/31 Interest receivables Dividend receivables Other receivables 149015138.26 318832784.47 Total 149015138.26 318832784.47 194Bengang Steel Plates Co. Ltd. Annual Report 2024 1. Other receivables (1) Other receivables disclosed by aging Items 2024/12/31 2023/12/31 Within 1 year (inclusive) 58452918.98 288092502.22 1-2 years (inclusive) 91693078.45 35300832.41 2-3 years (inclusive) 13520953.62 6078775.88 3-4 years (inclusive) 3962574.01 3125628.24 4-5 years (inclusive) 842882.51 229028.24 over 5 years 52141851.60 61270101.82 Subtotal 220614259.17 394096868.81 Less: Provision for bad debts 71599120.91 75264084.34 Total 149015138.26 318832784.47 195Bengang Steel Plates Co. Ltd. Annual Report 2024 (2) Disclosed by bad debt accrual method 2024/12/312023/12/31 Carrying amount Provision for bad debts Carrying amount Provision for bad debts Items Percentage Bad debts Book value Percentage Bad debts Book value Amount Amount Amount Amount (%) ratio (%) (%) ratio (%) Provision for bad 18192317.008.2518192317.00100.0018245545.944.6318245545.94100.00 debts individually Provision for bad debts based on 202421942.17 91.75 53406803.91 26.38 149015138.26 375851322.87 95.37 57018538.40 15.17 318832784.47 portfolio Include: Aging portfolio 202194971.97 91.65 53406803.91 26.41 148788168.06 375693565.04 95.33 57018538.40 15.18 318675026.64 Low risk 226970.200.10226970.20157757.830.04157757.83 portfolio Total 220614259.17 100.00 71599120.91 149015138.26 394096868.81 100.00 75264084.34 318832784.47 196Bengang Steel Plates Co. Ltd. Annual Report 2024 Significant other receivables tested for impairment individually: 2024/12/312023/12/31 Bad Company Carrying Provision for debts Carrying Provision for Reason amount bad debts ratio amount bad debts (%) Benxi Iron and Steel (Group) No. 3 12504978.59 12504978.59 100.00 Discontinued 12504978.59 12504978.59 Architectural Engineering Co. Ltd.Total 12504978.59 12504978.59 12504978.59 12504978.59 Provision for bad debt by portfolio of credit risk characteristics: Portfolio accrual item: Aging portfolio 2024/12/31 Items Amount Provision for bad debts Percentage（%） Within 1 year 58225948.78582286.021.00 (inclusive) 1-2 year (inclusive) 89253047.11 8925304.71 10.00 2-3 year (inclusive) 13520953.62 2704190.72 20.00 3-4 year (inclusive) 3317576.01 3317576.01 100.00 4-5 year (inclusive) 842882.51 842882.51 100.00 Aver 5 years 37034563.94 37034563.94 100.00 Total 202194971.97 53406803.91 (3) Information of provision for bad debts 197Bengang Steel Plates Co. Ltd. Annual Report 2024 Stage one Stage two Stage three lifetime expected lifetime expected 12-month Provision for bad debts credit losses (credit credit losses (credit Total expected credit impairment has not impairment has losses occurred) already occurred) Beginning balance 2870228.94 4630838.82 67763016.58 75264084.34 Beginning balance during current period --Transfer to the second stage -892530.47 892530.47 --Transfer to the third stage -663515.20 663515.20 --Write-back to the second stage --Write-back to the first stage Accrual for the current period -1395412.45 6769641.34 -4360613.49 1013615.40 Reversal during the current period Write-back of the current period Write-off during the current period -4678578.83 -4678578.83 Other changes Ending balance 582286.02 11629495.43 59387339.46 71599120.91 (4) Information of provision reversal or recovery of bad debts of current period Changes during the current period Reversal Items 2023/12/31 Write-back 2024/12/31 Accrual or Others or write-off recovered Bad debt provision for other 75264084.34 1013615.40 4678578.83 71599120.91 receivables Total 75264084.34 1013615.40 4678578.83 71599120.91 (5) Other accounts receivable has been written off this year. Item Write-off amount Actual write-off of other accounts receivable 4678578.83 (6) Other receivables disclosed by nature 198Bengang Steel Plates Co. Ltd. Annual Report 2024 Nature 2024/12/31 2023/12/31 Compensation for the 87177700.00212242400.00 “Living Show Belt” project Current Account 130478649.66 176119468.97 Others 2957909.51 5734999.84 Total 220614259.17 394096868.81 (7) Top five other receivables at the end of the period Percentage Provision for Nature or of total other Company Amount Aging bad debts at content receivables 2024/12/31 (%) Compensation Benxi Xihu for the District 87177700.00 1-2years 39.52 8717770.00“Living ShowGovernmentBelt” project Benxi Iron and Steel (Group) 3-4 years No. 3 Current 12504978.59 over 5 5.67 12504978.59 Architectural Account years Engineering Co. Ltd.Benxi Iron and Steel (Group) No. 1 Current over 5 3247307.071.473247307.07 Architectural Account years Engineering Co. Ltd.Benxi Iron & Within 1 Current Steel (Group) 2674500.00 year 1-2 1.21 157740.00 Account Co. Ltd.. years Liaoning Huawei Coal Current over 5 2261360.001.032261360.00 Preparation Co. Account years Ltd.Total 107865845.66 48.90 26889155.66 199Bengang Steel Plates Co. Ltd. Annual Report 2024 (7) Inventories 1. Inventories disclosed by category 2024/12/312023/12/31 Inventory Inventory impairment/ impairment/ Items Gross carrying amount Impairment of Book value Gross carrying amount Impairment of Book value contract fulfillment contract costs fulfillment costs Raw material 4300063154.21 247221306.73 4052841847.48 4597335903.32 56931870.40 4540404032.92 Work in progress 2001147780.74 26685410.19 1974462370.55 1627187498.35 12076074.97 1615111423.38 Finished goods 1337346627.43 31566151.19 1305780476.24 1619204312.92 5167994.78 1614036318.14 Total 7638557562.38 305472868.11 7333084694.27 7843727714.59 74175940.15 7769551774.44 2. Impairment of inventory and contract fulfillment cost Increase Decrease Category 2023/12/31 Write-back or 2024/12/31 Provision Others Others write-off Raw material 56931870.40 222266454.27 31977017.94 247221306.73 200Bengang Steel Plates Co. Ltd. Annual Report 2024 Increase Decrease Category 2023/12/31 Write-back or 2024/12/31 Provision Others Others write-off Work in progress 12076074.97 24653728.96 10044393.74 26685410.19 Finished goods 5167994.78 31566151.19 5167994.78 31566151.19 Total 74175940.15 278486334.42 47189406.46 305472868.11 201Bengang Steel Plates Co. Ltd. Annual Report 2024 (8) Other current assets Items 2024/12/31 2023/12/31 VAT input tax 401503924.78 88281138.57 Prepaid tax 17220232.46 Others 35577335.88 52288605.87 Total 437081260.66 157789976.90 202Bengang Steel Plates Co. Ltd. Annual Report 2024 (9) Long-term equity investment 1. long-term equity investment Increase/decrease Income or Impairment loss on Impairment Other Declaration provision Addition Reduction investment Other provision Investees 2023/12/31 Comprehensive of Cash 2024/12/31 as of of of recognized Equity Provision Others as of Income Dividends 2023/12/31 Investment Investment under the Changes 2024/12/31 Adjustment or Profit equity method 1．Joint Venture Subtotal 2．Associated Enterprise Shenyang Xiangyu New 46910346.41 -1497124.69 45413221.72 Material 203Bengang Steel Plates Co. Ltd. Annual Report 2024 Increase/decrease Income or Impairment loss on Impairment Other Declaration provision Addition Reduction investment Other provision Investees 2023/12/31 Comprehensive of Cash 2024/12/31 as of of of recognized Equity Provision Others as of Income Dividends 2023/12/31 Investment Investment under the Changes 2024/12/31 Adjustment or Profit equity method Technology Co. Ltd.Subtotal 46910346.41-1497124.6945413221.72 Total 46910346.41-1497124.6945413221.72 204Bengang Steel Plates Co. Ltd. Annual Report 2024 (10) Other equity instrument investment 1. The information of other equity instrument investment Reasons for Losses Gains recognized Accumulated gains Accumulated designation as at recognized in in other in other losses in other Dividend fair value Items 2024/12/31 2023/12/31 other comprehensive comprehensive comprehensive income through other comprehensive income income income comprehensive income income Suzhou Longben Metal Materials 3940544.25 3930341.27 10202.98 51564.25 Co. Ltd.Northeast Special Steel 929485710.38 970532698.56 41046988.18 108250138.62 Group Co. Ltd.Sinosteel Shanghai Steel 14414693.00 Processing Co.Ltd.Total 933426254.63 974463039.83 10202.98 41046988.18 51564.25 122664831.62 205Bengang Steel Plates Co. Ltd. Annual Report 2024 (11) Fixed assets 1. Fixed assets and Disposal of fixed assets Items 2024/12/31 2023/12/31 Fixed assets 26426320453.57 25174210887.76 Disposal of fixed assets Total 26426320453.57 25174210887.76 206Bengang Steel Plates Co. Ltd. Annual Report 2024 2. Details of fixed assets Transportation Furniture and office Items Buildings Machinery Total equipment and others equipment 1．Gross carrying amount （1）31 December 2023 13114845627.16 51589466896.27 400420060.37 198681621.21 65303414205.01 （2）Increase in current period 1180423739.35 1887443237.03 17145875.04 44792995.18 3129805846.60 —Including: Purchase 22337097.00 1497811.65 286053.10 24120961.75 —Transferred from 1156406102.351894470747.529904368.0044903666.983105684884.85 construction in progress —Others 1680540.00 -8525322.14 6955453.94 -110671.80 （3）Decrease in current period 33246189.89 771012849.69 16580203.06 558524.79 821397767.43 —Including: Disposal or 32704189.89290485326.9516580203.06558524.79340328244.69 scrapped —Others 542000.00 480527522.74 481069522.74 （4）31 December 2024 14262023176.62 52705897283.61 400985732.35 242916091.60 67611822284.18 2．Total accumulated depreciation （1）31 December 2023 6643381244.52 32937556821.40 324031006.12 112924985.39 40017894057.43 （2）Increase in current period 223976867.87 1375164992.17 11465609.46 25069873.24 1635677342.74 207Bengang Steel Plates Co. Ltd. Annual Report 2024 Transportation Furniture and office Items Buildings Machinery Total equipment and others equipment —Including: Provision 218757991.40 1380871732.54 10828573.77 25219045.03 1635677342.74 —Others 5218876.47 -5706740.37 637035.69 -149171.79 （3）Decrease in current period 23530467.99 539869117.89 15413972.37 557362.97 579370921.22 —Including: Disposal or 23074947.59248828673.1315413972.37557362.97287874956.06 scrapped —Others 455520.40 291040444.76 291495965.16 （4）31 December 2024 6843827644.40 33772852695.68 320082643.21 137437495.66 41074200478.95 3．Total impairment （1）31 December 2023 83249262.08 28059997.74 111309259.82 （2）Increase in current period 429.84 -429.84 —Including: Provision —Other 429.84 -429.84 （3）Decrease in current period 7908.16 7908.16 —Including: Disposal or 7908.167908.16 scrapped （4）31 December 2024 83249691.92 28051659.74 111301351.66 4．Total net book value of fixed assets 208Bengang Steel Plates Co. Ltd. Annual Report 2024 Transportation Furniture and office Items Buildings Machinery Total equipment and others equipment （1）31 December 2024 7334945840.30 18904992928.19 80903089.14 105478595.94 26426320453.57 （2）31 December 2023 6388215120.56 18623850077.13 76389054.25 85756635.82 25174210887.76 209Bengang Steel Plates Co. Ltd. Annual Report 2024 3. Fixed assets idled temporarily Gross carrying Accumulated Items Impairment Book value Note amount depreciation Buildings 112751517.87 68252420.48 41943853.74 2555243.65 Machinery 3034473.01 2400446.13 75666.43 558360.45 Total 115785990.88 70652866.61 42019520.17 3113604.10 4. Fixed assets leased out by operating lease Items Amount as at 2024/12/31 Buildings 21953644.55 Machinery 516890.90 5. Fixed assets without property rights certificates at the end of the period Items Book value Reason Buildings 2368256204.48 In process (12) Construction in progress 1. Construction in progress and Construction materials 2024/12/312023/12/31 Total Total Items Gross carrying Gross carrying impair Book value impairm Book value amount amount ment ent Construction in progress 3934442501.50 3934442501.50 4307646942.37 4307646942.37 Project materials 757204.94 757204.94 Total 3934442501.50 3934442501.50 4308404147.31 4308404147.31 2. Details of construction in progress 210Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/312023/12/31 Items Total Total Gross carrying amount impairme Book value Gross carrying amount impairmen Book value nt t Special Steel Electric Furnace Capacity Replacement Project 483671390.32 483671390.32 1195585747.24 1195585747.24 Cold Rolling Transformation Project 492919655.40 492919655.40 578301217.76 578301217.76 Environmental Protection Renovation of Plate Raw 160208719.65 160208719.65 452296692.77 452296692.77 Material Plant Renovation of the Hot Blast Furnace and Heat Exchanger of the No.7 Blast Furnace in Plate 120538633.05 120538633.05 Ironmaking Plant Environmental Protection Renovation in No. 2 Coal Storage Field of Plates Raw 119656230.22 119656230.22 256434251.91 256434251.91 Material Plant Centralized Control Project before Ironmaking of Plates 107816471.12 107816471.12 61969240.03 61969240.03 Iron Making Plant Blocking of ABC and DEF Stockyard in Plates Iron 25201133.59 25201133.59 99129674.71 99129674.71 Making Plant Desulphurization Waste Liquor Acid Making Project in Plates 79335324.68 79335324.68 78562923.84 78562923.84 Iron Making Plant 1780 Production Line Upgrading 78531654.02 78531654.02 58044160.54 58044160.54 Ultra-low emission transformation of the dust removal system in the original No.3 operation areas of the 68740566.29 68740566.29 Iron and Steel Plant Renovation of cooling equipment of No.7 blast 65430926.20 65430926.20 211Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/312023/12/31 Items Total Total Gross carrying amount impairme Book value Gross carrying amount impairmen Book value nt t furnace in Plate Ironmaking Plant Renovation of the dust removal system in the No. 6 blast furnace area of the Iron and 64377725.64 64377725.64 Steel Plant Supporting Projects for Outward Transportation of Nanfen Pipeline Transported Mineral Concentrate in 20268938.79 20268938.79 37857546.59 37857546.59 Bengang Plates and Iron Making General Plant Special Steel Rolling Mill Renovation Project 59562329.18 59562329.18 367831655.88 367831655.88 Capacity Replacement Project of No. 5 Blast Furnace of Bensteel Ironmaking Plant (Energy-saving and 55645429.58 55645429.58 31033533.06 31033533.06 Environmental Protection Renovation of No. 5 Blast Furnace of Ironmaking Plant) Bengang Plate intelligent factory Project 53198819.53 53198819.53 17440916.39 17440916.39 Project of Converting Steam Drums to Electric Drums at the Plate Energy 48987269.15 48987269.15 Management and Control Center Environmental Protection Retrofit of the Second Sintering Stockyard at the 46697183.08 46697183.08 Plate Ironmaking General Works Retrofit of the Dust Removal System in the New No.1 Blast Furnace Area at 46333893.64 46333893.64 the Ironmaking General Works Flue Gas Desulfurization and Denitrification Project of 4B 44724618.50 44724618.50 54553821.01 54553821.01 and 5 Furnace Group in 212Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/312023/12/31 Items Total Total Gross carrying amount impairme Book value Gross carrying amount impairmen Book value nt t Bengang Plates and Iron Making General Plant Plate No.1 Dry Quenching System Boosting Modification and Unit No.34 New 41832708.63 41832708.63 76994180.14 76994180.14 Construction CCPP Power Generation Project 40983279.77 40983279.77 Zero Solid Waste Project for Plate Special Steel Division 39492805.04 39492805.04 16806961.88 16806961.88 Environmental Treatment of the First and Second Mixing Systems for Sinter Machine at Plate Ironmaking 37822726.20 37822726.20 General Works Fully Enclosed Belt Conveyor Gallery Project at Benxi Steel Plate 34238770.60 34238770.60 Ironmaking General Works Hazard Rectification of Taizi River Railway Bridge at Railway 33150135.48 33150135.48 2945660.39 2945660.39 Transportation Company Environmental Treatment of Blast Furnace Ore Bins at Plate Ironmaking 32949949.75 32949949.75 General Works New Construction of 40 000 m3/h Nitrogen Compressors in 32705542.87 32705542.87 25842342.61 25842342.61 Energy General Plant Cold rolling plant (three colding area) automotive plate 32349796.66 32349796.66 7010000.00 7010000.00 quality improvement Retrofit of Dust Removal System in No.7 Blast Furnace Area at 31296143.60 31296143.60 Ironmaking General Works Refractory Materials Retrofit for No.7 Blast Furnace at Plate 30936881.22 30936881.22 Ironmaking General Works 213Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/312023/12/31 Items Total Total Gross carrying amount impairme Book value Gross carrying amount impairmen Book value nt t Heat Treatment Retrofit for Plate Hot Rolling Production 30641320.00 30641320.00 Line (PM and NOX Control) Coking Wastewater Reconstruction Project at Plate Ironmaking General 30297204.41 30297204.41 Works Integration Construction of Informatization System for Ansteel and Bengang 112748748.06 112748748.06 Recombination Others 1243898325.64 1243898325.64 776257667.56 776257667.56 Total 3934442501.50 3934442501.50 4307646942.37 4307646942.37 214Bengang Steel Plates Co. Ltd. Annual Report 2024 3. Changes in important construction projects in the current period Project cumulative Other investment Including： Interest Accumulated Transferred to decrease accounted Project Interest capitalization Increase during amount of Sources of Items Budget 2023/12/31 fixed asset during during 2024/12/31 for the progress capitalization rate in current period interest funds current period current proportion (%) amount in current capitalization period of the current period period (%) budget (%) Special Steel Electric Furnace Fund Capacity 1732481000.00 1195585747.24 87226902.40 799141259.32 483671390.32 92.17 92.17 52044899.29 29014349.00 4.08 raising Replacement Project Cold Rolling Loan Transformation from 843640000.00 578301217.76 223588867.77 492919655.41 91.71 91.71 40109076.46 21549048.81 4.08 Project 138207305.42 financial institute Environmental Loan Protection from Renovation of 1286370000.00 452296692.77 18129927.97 310217901.09 160208719.65 36.57 36.57 36764770.52 17782974.96 4.08 financial Sheet Raw institute Material Plant Environmental Protection and Intelligent Loan Upgrading and from Retrofit for Plate 310000000.00 256434251.91 33479849.25 170257870.94 119656230.22 93.52 93.52 9092899.25 9092899.25 4.08 financial Material Yard – institute Environmental Protection Retrofit Project 215Bengang Steel Plates Co. Ltd. Annual Report 2024 Project cumulative Other investment Including： Interest Accumulated Transferred to decrease accounted Project Interest capitalization Increase during amount of Sources of Items Budget 2023/12/31 fixed asset during during 2024/12/31 for the progress capitalization rate in current period interest funds current period current proportion (%) amount in current capitalization period of the current period period (%) budget (%) for No.2 Coal Storage Yard Centralized Control Project before Ironmaking of 162000000.00 61969240.03 45847231.09 107816471.12 66.55 66.55 Others Plates Iron Making General Plant Special Steel Loan Rolling Mill from 734730000.00 367831655.88 36893421.17 345162747.87 59562329.18 89.94 89.94 36315395.15 14232254.54 4.08 Renovation financial Project institute Desulphurization Waste Liquor Acid Making 99760000.0078562923.8410855250.0010082849.16 Project in Plates 79335324.68 89.63 89.63 Others Iron Making Plant 1780 Production 193000000.00 58044160.54 20487493.48 78531654.02 83.31 83.31 Line Upgrading Others Retrofit of Original No.3 Operation Area 99660000.00 68740566.29 68740566.29 68.98 68.98 Others Dust Removal System for 216Bengang Steel Plates Co. Ltd. Annual Report 2024 Project cumulative Other investment Including： Interest Accumulated Transferred to decrease accounted Project Interest capitalization Increase during amount of Sources of Items Budget 2023/12/31 fixed asset during during 2024/12/31 for the progress capitalization rate in current period interest funds current period current proportion (%) amount in current capitalization period of the current period period (%) budget (%) Ultra-Low Emissions at Ironmaking General Works Integration Construction of Loan Informatization from System for 232100000.00 112748748.06 51863186.24 164611934.30 100.00 100.00 7233001.66 853186.24 4.08 financial Ansteel and institute Bengang Recombination Total 3161774638.03511731133.312023063430.451650442340.89181560042.3392524712.80 217Bengang Steel Plates Co. Ltd. Annual Report 2024 (13) Right of use assets 1. Right of use assets Items Land Buildings Machinery Total 1. Gross carrying amount (1) 31 December 2023 1132274415.17 368465367.56 1500739782.73 (2) Increase in current 444230189.48444230189.48 period —Addition —Others 444230189.48 444230189.48 (3) Decrease in current period —Disposal or scrapping —Others (4) 31 December 2024 1132274415.17 368465367.56 444230189.48 1944969972.21 2．Total accumulated depreciation (1) 31 December 2023 119712708.68 61410894.68 181123603.36 (2) Increase in current 39904236.2420470298.2817546124.1977920658.71 period —Provision 39904236.24 20470298.28 17546124.19 77920658.71 (3) Decrease in current period —Disposal or scrapping —Others (4) 31 December 2024 159616944.92 81881192.96 17546124.19 259044262.07 3．Total impairment (1) 31 December 2023 (2) Increase in current period —provision 218Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Land Buildings Machinery Total (3) Decrease in current period —Disposal or scrapping —Others (4) 31 December 2024 4．Total net book value (1) 31 December 2024 972657470.25 286584174.60 426684065.29 1685925710.14 (2) 31 December 2023 1012561706.49 307054472.88 1319616179.37 (14) Intangible assets 1. Details of intangible assets Items Software Land use right Total 1．Total of original value （1）31 December 2023 267948.72 453005114.76 453273063.48 （2）Increase 4171704.31 36424807.76 40596512.07 —Purchase 4171704.31 36424807.76 40596512.07 —Internal R&D —Increase in Mergers —Others （3）Decrease —Disposal —Others （4）31 December 2024 4439653.03 489429922.52 493869575.55 2．Total Accumulated Amortization （1）31 December 2023 186634.58 89268111.77 89454746.35 （2）Increase 500188.88 9134571.64 9634760.52 —Provision 500188.88 9134571.64 9634760.52 （3）Decrease 219Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Software Land use right Total —Disposal —Others （4）31 December 2024 686823.46 98402683.41 99089506.87 3．Total of Impairment （1）31 December 2023 （2）Increase —Provision （3）Decrease —Disposal —Others （4）31 December 2024 4．Total of Net book value （1）31 December 2024 3752829.57 391027239.11 394780068.68 （2）31 December 2023 81314.14 363737002.99 363818317.13 2. Land use right without property rights certificates at the end of the period Items Book value Reason Land use right 36424807.76 In process Total 36424807.76 (15) Deferred tax asset and deferred tax liability 1. Deferred tax assets before taking into consideration of the balance offsetting 2024/12/312023/12/31 Deductible Deductible Items Deferred tax Deferred tax temporary temporary asset asset differences differences Impairment 598249997.63 90011580.45 403698019.09 100549055.02 Changes in fair value of other financial 122664831.62 18399724.74 81617843.44 20404460.86 assets recognized in 220Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/312023/12/31 Deductible Deductible Items Deferred tax Deferred tax temporary temporary asset asset differences differences other comprehensive income Lease liabilities 1752154297.33 262823144.60 1384348462.17 346087115.54 Total 2473069126.58 371234449.79 1869664324.70 467040631.42 2. Deferred tax liabilities before taking into consideration of the balance offsetting 2024/12/312023/12/31 Taxable Taxable Items Deferred tax Deferred tax temporary temporary liabilities liabilities differences differences Changes in fair value of other financial assets recognized in 31158.29 4673.74 41361.27 10340.32 other comprehensive income Right-of-use assets 1685925710.14 252888856.52 1319616179.47 329904044.87 Total 1685956868.43 252893530.26 1319657540.74 329914385.19 3. Unrecognized deferred tax assets Items 2024/12/31 2023/12/31 Deductible temporary differences 286782181.23 305249989.08 Deductible losses 9483185444.74 4213758736.79 Total 9769967625.97 4519008725.87 4. The deductible loss of unrecognized deferred tax assets due in the following period 221Bengang Steel Plates Co. Ltd. Annual Report 2024 Year 31 December 2024 31 December 2023 Notes Year 2024 12164389.35 Year 2025 8257832.98 8257832.98 Year 2026 6799314.77 6799314.77 Year 2027 8117351.82 1919832999.81 Year 2028 2266704199.88 Year 2029 Year 2030 Year 2031 Year 2032 1911715647.99 Year 2033 2367541315.76 Year 2034 5180753981.42 Permanent Total 9483185444.74 4213758736.79 (16) Other non-current assets 2024/12/312023/12/31 Gross Items Impairmen Gross carrying Impairmen carrying Book value Book value t amount t amount Prepaymen 86297275.186297275.1139318979.6139318979.6 t for long- 6611 term assets 86297275.186297275.1139318979.6139318979.6 Total 6611 222Bengang Steel Plates Co. Ltd. Annual Report 2024 (17) Assets with restricted ownership or use rights 2024/12/312023/12/31 Items Type of Type of Carrying amount Book value Status Carrying amount Book value Status restriction restriction Margin for Margin for Margin for Notes Margin for Notes Notes Notes Cash at bank and receivable receivable、 863683251.57 863683251.57 receivable 1009879189.82 1009879189.82 receivable on hand Margin for letter Margin for letter Margin for letter Margin for letter of credit of credit of credit of credit Notes receivable 165968800.17 165968800.17 Pledged Pledged 218427117.76 218427117.76 pledged Pledged Total 1029652051.74 1029652051.74 1228306307.58 1228306307.58 223Bengang Steel Plates Co. Ltd. Annual Report 2024 (18) Short-term loans 1. Classification of short-term loans Items 2024/12/31 2023/12/31 Credit loans 370000000.00 300000000.00 Discounted unexpired bills 1055490.50 28000000.00 Total 371055490.50 328000000.00 (19) Notes payable Items 2024/12/31 2023/12/31 Bank acceptance bill 10412029417.45 8607537398.13 Commercial acceptance bill 1559477470.97 463403421.74 Letter of credit 1011196781.44 1300000000.00 Total 12982703669.86 10370940819.87 Note: The total amount of overdue but unpaid bills payable at the end of this period was RMB 48559.99 and the reason for the overdue non-payment was that the holder did not submit a payment application. (20) Accounts payable 1. Accounts payable Items 2024/12/31 2023/12/31 Within 1 year (inclusive) 2680864210.15 2782483183.30 1-2 year (inclusive) 61748259.48 9101689.70 2-3 year (inclusive) 8554593.94 7414901.65 Over 3 years 10592375.79 10289787.90 Total 2761759439.36 2809289562.55 2. Significant accounts payable aging over one year or overdue Items 2024/12/31 Reasons Benxi Xihu Metallurgical Furnace Not yet eligible for 8634100.91 Materials Co. Ltd. settlement 224Bengang Steel Plates Co. Ltd. Annual Report 2024 Items 2024/12/31 Reasons Total 8634100.91 (21) Prepayments Items 2024/12/31 2023/12/31 Within 1 year (inclusive) 611.60 143119.29 1-2 year (inclusive) 58715.61 2-3 year (inclusive) Over 3 years Total 59327.21 143119.29 (22) Contract liabilities 1. Details of contract liabilities Items 2024/12/31 2023/12/31 Payment received in advance and labor 2894761202.083317561273.87 costs Others 13837223.65 890227.48 Total 2908598425.73 3318451501.35 (23) Employee benefits payable 1. Employee benefits payable Items 2023/12/31 Increase Decrease 2024/12/31 Short-term employee 1326522.661781081109.331780634563.641773068.35 benefits Post-employment benefits - defined 264658442.66 264658442.66 contribution plans Termination benefits 91178161.79 91178161.79 Other benefits due within one year Others 225Bengang Steel Plates Co. Ltd. Annual Report 2024 Items 2023/12/31 Increase Decrease 2024/12/31 Total 1326522.66 2136917713.78 2136471168.09 1773068.35 2. Short-term employee benefits Items 2023/12/31 Increase Decrease 2024/12/31 (1) Salary bonus 1241729118.001241729118.00 allowance and subsidy (2) Employee welfare 183278262.06 183278262.06 (3) Social Insurance 146659134.63 146659134.63 Including: Medical insurance and maternity 110084418.51 110084418.51 insurance Work injury 33960492.1233960492.12 insurance Others 2614224.00 2614224.00 (4) Housing fund 158404372.00 158404372.00 (5) Union funds and staff 1326522.6630289722.0429843176.351773068.35 education fee (6) Short-term compensated absences (7) Short-term profit - sharing scheme (8) Other short-term 20720500.6020720500.60 benefits Total 1326522.66 1781081109.33 1780634563.64 1773068.35 3. Defined contribution plans Items 2023/12/31 Increase Decrease 2024/12/31 Basic pension fund 209080938.63 209080938.63 Unemployment insurance 6533652.46 6533652.46 Annuity 49043851.57 49043851.57 226Bengang Steel Plates Co. Ltd. Annual Report 2024 Items 2023/12/31 Increase Decrease 2024/12/31 Total 264658442.66 264658442.66 (24) Current tax liabilities Items 2024/12/31 2023/12/31 Value-added tax 10272516.44 9391089.23 Resource Tax 750000.00 Corporate income tax 16029179.78 16645618.08 City maintenance and construction tax 540889.49 526991.99 House property tax 7370656.33 4751185.44 Land use right tax 1088809.99 1088809.99 Individual income tax 2157426.95 2480368.12Educational surcharges（including 386769.92376422.86local Educational surcharges） Others 15473848.93 22378599.59 Total 54070097.83 57639085.30 (25) Other payables Items 2024/12/31 2023/12/31 Interest payables Dividends payables 99687100.35 Other payables 2255007099.66 1727079607.48 Total 2354694200.01 1727079607.48 1. Dividends payables Items 2024/12/31 2023/12/31 Bengang Group Co. Ltd. 45054305.70 Pohang Iron and Steel Co. Ltd (POSCO) 54632794.65 Total 99687100.35 227Bengang Steel Plates Co. Ltd. Annual Report 2024 2. Other payables (1) Other payables disclosed by nature Items 2024/12/31 2023/12/31 Deposit 586292.00 710292.00 Margin 377422555.34 339259547.69 Accounts 1871598040.35 1374846301.16 Others 5400211.97 12263466.63 Total 2255007099.66 1727079607.48 (2) Significant other payables aged over one year or overdue Items 2024/12/31 Reasons Hunan MCC Changtian Energy Saving and The project is still in 21182950.50 Environmental Protection Technology Co. Ltd. progress The project is still in Shanghai Baosight Software Co. Ltd. 6989390.00 progress The project is still in MCC Jingcheng Engineering Technology Co. Ltd 9677280.00 progress (26) Non-current liabilities due within one year Items 2024/12/31 2023/12/31 Long-term loans due within one year 805270731.20 562310473.60 Including: pledge loan Mortgage loan Guaranteed loan Credit loan 805270731.20 562310473.60 Bond payables due within one year 106989474.64 81650008.44 Other long-term payables due within one 118242710.8241921209.72 year Total 1030502916.66 685881691.76 (27) Other current liabilities 228Bengang Steel Plates Co. Ltd. Annual Report 2024 Items 2024/12/31 2023/12/31 Output tax to be transferred 328981058.74 399791720.50 Total 328981058.74 399791720.50 (28) Long-term loans Items 2024/12/31 2023/12/31 Pledged loans Mortgage loan Guaranteed loans Credit loans 3697212193.60 2286037174.40 Subtotal 3697212193.60 2286037174.40 Less: Non-current liabilities due within 805270731.20562310473.60 one year Total 2891941462.40 1723726700.80 Notes: The interest rate of long-term loans is 2.45%-3.28%. (29) Bonds payable 1. Bonds payable disclosed by category Items 2024/12/31 2023/12/31 Convertible Bond 5569899459.53 5451381676.38 Total 5569899459.53 5451381676.38 229Bengang Steel Plates Co. Ltd. Annual Report 2024 2. Changes in Bonds payables (Excluding other financial instruments such as preferred stocks and perpetual bonds classified as financial liabilities) Share conversi Balance at the end Premium and Balance at the end Issue Bond Current Interest accrued Repayment in on and Default Items Face value Issuance amount of the previous discount of the current date duration issue at face value this period repurcha or not year amortization period se this year Bengang 29th Convertible 6800000000.00 June 6 years 6800000000.00 5451381676.38 - 188647127.08 118556783.14 81657652.43 39000.00 5676888934.17 No Bond (Bond 2020 code:127018) Less: amount due within one 106989474.64 106989474.64 No year Total 5451381676.38 81657652.44 118556783.14 81657652.43 39000.00 5569899459.53 3. Description of corporate convertible bond: 230Bengang Steel Plates Co. Ltd. Annual Report 2024 Approved by Shenzhen Stock Exchange "Shen Zheng Shang [2020] No. 656" the Company’s RMB 6.80 billion convertible corporate bonds were listed on the Shenzhen Stock Exchange on August 4 2020 and the abbreviation is "Bengang Convertible Bonds". The bond code is "127018". The conversion period of the convertible corporate bonds issued this time is from the first trading day after six months of the issuance of the convertible corporate bonds (July 3 2020) to the maturity date of the convertible corporate bonds that is from January 4 2021 to June 28 2026. The initial conversion price of the convertible bonds is RMB 5.03 per share. From January 1 2024 to December 31 2024 an aggregate of RMB35000.00 of the convertible bonds were converted into 8855.00 common stock. The total amount of convertible bonds redeemed is RMB 4000.00. Among them: In the first quarter of 2024 the Bengang convertible bonds were reduced by RMB7000.00 (70 bonds) due to the conversion and the number of shares converted was 1771.00 shares and the conversion price was RMB3.95 per share; In the third quarter of 2024 the Bengang convertible bonds were reduced by RMB13000.00 (130 bonds) due to the conversion and the number of shares converted was3289.00 shares and the conversion price was RMB3.95 per share; reduced by RMB 4000.00 (40 bonds) due to redemption; In the forth quarter of 2024 the Bengang convertible bonds were reduced by RMB15000.00 (150 bonds) due to the conversion and the number of shares converted was 3795.00 shares and the conversion price was RMB3.95 per share; As of December 31 2024 the remaining amount of the face value of the convertible bonds was RMB 5630985100.00 Yuan (56309851.00 bonds). 231Bengang Steel Plates Co. Ltd. Annual Report 2024 (30) Lease liabilities Items 2024/12/31 2023/12/31 Lease payments 2539395930.63 2098254018.65 Less: Unrealized financing expenses 787241633.30 713905556.48 Reclassified to non-current liabilities 118242710.8241921209.72 within one year Total 1633911586.51 1342427252.45 (31) Deferred income Items 2023/12/31 Increase Decrease 2024/12/31 Reason Government 174142383.1861766472.3861989768.09173919087.47 subsidy Total 174142383.18 61766472.38 61989768.09 173919087.47 232Bengang Steel Plates Co. Ltd. Annual Report 2024 Transfer to Related to Offsetting Items 2023/12/31 Increase non-operating Transfer to cost or Other assets or other income changes 2024/12/31 income expenses income Research and Development of High- strength Steel for the Third Generation 580000.00 580000.00 Assets of Automobiles Desulfurization and Denitrification Project of Coal-fired Boiler in High- pressure Workshop of Bengang Power 1800000.00 600000.00 1200000.00 Assets Plant Advanced Treatment Project of Carbon Fiber Wastewater in Dongfeng Plant 3800000.00 1900000.00 1900000.00 Assets Area of Plate Coking Plant Second Sintering Finishing Dust Removal Ultra-low Emission 820000.00 410000.00 410000.00 Assets Reconstruction Project Converter Gas Recovery Efficiency Improvement Project for Plate Material 9680000.00 2420000.00 7260000.00 Assets Area Central environmental protection award fund 84352000.00 21088000.00 63264000.00 Assets 2021 Intellectual Manufacturing Strong Province Special Fund 3840000.00 960000.00 2880000.00 Assets 2020 Ecological Civilization Construction Special Project (Special Steel Electric Furnace Upgrading 20000000.00 4000000.00 16000000.00 Assets Project) 2021 Manufacturing Strong Province Special Fund Project 8100000.00 1620000.00 6480000.00 Assets 233Bengang Steel Plates Co. Ltd. Annual Report 2024 Bengang Automotive Sheet Engineering Laboratory Construction 770472.38 25338.58 745133.80 Assets Project Xingliao Talent Program Government Grant 236500.00 46500.00 190000.00 Income 2021 Benxi City Expert-Enterprise Collaboration Program 5000.00 5000.00 Income 2022 Liaoning Provincial Natural Science Foundation Program Funds 28400.00 28400.00 Income (Provincial Department of Science and Design of Rare Earth Steel Metallurgical Slag System and Research on Its Physicochemical 317349.00 15175.50 302173.50 Income Properties 2021 Municipal Skilled Master Workstation Fee 77219.45 56454.88 20764.57 Income Study on the Mechanism and Control of the Effect of Rare Earth Oxysulfides on the Plasticizability of Automotive 122220.20 70200.00 52020.20 Income Steel 2019 Municipal Master Skill Workstation Fee 69500.19 69500.19 Income 2018 Municipal Master Skill Workstation Fee 58766.34 58766.34 Income Liaoning Province "Hundred Thousand Thousand Thousand Talents Project" funding project in 220000.00 220000.00 Income 2018 234Bengang Steel Plates Co. Ltd. Annual Report 2024 Provincial Science and Technology Department National Natural Science 334000.00 334000.00 Income Foundation Committee 2019 Provincial Skilled Master Workstation Fee 200000.00 100000.00 100000.00 Income 2020 Provincial-level Skill Master Workstation Expenditure 100000.00 63799.16 36200.84 Income Fundamental Research on New Technology of Composite Iron Coke Low Carbon Ironmaking Furnace 168000.00 168000.00 Income Charge The Second Batch of 2021 Liaoning Funds on Central Government Guiding the Development of Local Science and 300000.00 300000.00 Income Technology 2022 Digital Liaoning Intellectual Manufacturing Strong Province 300000.00 300000.00 Income Municipal Enterprise Operation Class Patent Navigation Project Funding 200000.00 200000.00 Income Grant Genetic Engineering and Artificial Intelligence Design of Aviation Critical 376000.00 376000.00 Income Materials (Research Institute) 235Bengang Steel Plates Co. Ltd. Annual Report 2024 2022 Annual Provincial Skill Master Workshop Program 100000.00 67743.97 32256.03 Income Government Grants Received by Steel Products R&D Institute 525000.00 525000.00 Income Steel Plant Blast Furnace #5 Group & 4B Coke Oven Flue Gas 20460000.00 4092000.00 16368000.00 Assets Desulfurization/Denitrification Project Converter Roof Hood Tertiary Dust Removal Upgrade (BF #4/5/6 14610000.00 2922000.00 11688000.00 Assets Steelmaking Plant) Hot Metal Pretreatment Station Dust Control Retrofit (Converter Plant) 9663000.00 1932600.00 7730400.00 Assets Hot Blast Stove Desulfurization- Denitrification System Installation (Ironmaking Complex) 15267000.00 15267000.00 Assets Liaoning Provincial Standardization Subsidy Fund 10000.00 10000.00 - Income 2024 Manufacturing Talent Development Support Initiative 250000.00 250000.00 Income R&D on RE-Alloyed High-Strength Fatigue-Resistant Wheel Steel 111000.00 111000.00 Income 236Bengang Steel Plates Co. Ltd. Annual Report 2024 Hengda Logistics Park Land Use 38057428.00 Subsidy 19009956.00 19047472.00 Assets Total 174142383.18 61766472.38 61989768.09 173919087.47 237Bengang Steel Plates Co. Ltd. Annual Report 2024 (32) Share capital Increase/decrease (+ - ) 2024/12/31 Issuin Transferred Items 2023/12/31 g of Bonus from Others Subtotal new shares reserves share Total shares 4108219302.00 8855.00 8855.00 4108228157.00 Note: The increase was due to the convertible bonds issued by the Company were converted into 8855.00 shares of common stock during the period and the remaining balance of the face value of the Company's convertible bonds as of December 31 2024 was RMB5630985100.00 Yuan (56309851.00 bonds). For details please refer to Note 5. (29) Bonds payable. 238Bengang Steel Plates Co. Ltd. Annual Report 2024 (33) Other equity instruments Changes in financial instruments such as preferred stocks and perpetual bonds issued at the end of the period 2023/12/31 Increase Decrease 2024/12/31 Items Number Book value Number Book value Number Book value Number Book value Convertible corporate 56310241.00947858134.16390.007939.1356309851.00947850195.03 bonds Total 56310241.00 947858134.16 390.00 7939.13 56309851.00 947850195.03 Notes: The decrease during the current period was due to convertible bonds issued by the Company have been partially converted into common stock for an aggregate of RMB39000.00 (390 bonds) and the remaining balance of the face value of the convertible bonds as of December 31 2024 was RMB55630985100.00 Yuan (56309851.00 bonds). For details please refer to Note 5. (29) Bonds payable. 239Bengang Steel Plates Co. Ltd. Annual Report 2024 (34) Capital reserves Items 2023/12/31 Increase Decrease 2024/12/31 Capital (share) 13306308402.1025840.89196619544.8613109714698.13 premium Other capital 115917468.82115917468.82 reserves Total 13422225870.92 25840.89 196619544.86 13225632166.95 Notes: 1. The increase was due to the conversion of A-share convertible bonds issued by the Company into A-share common stock during the period as described in Note 5 (29) Bonds payable. 2. The decrease was due to the company's acquisition of North Hengda Logistics Co. Ltd. which was a merger of companies under common control. 240Bengang Steel Plates Co. Ltd. Annual Report 2024 (35) Other comprehensive income Current period Less: amount Income after recognized in Income after Amounts tax OCI in the tax Less: transfer Items 2023/12/31 before attributable to 2024/12/31 previous period Less: income tax attributable to to retain corporate non- transfer to PL owners of the earnings income tax controlling in current Company interests period 1．Items cannot be reclassified -50371341.88-41036785.201999069.54-43035854.74-93407196.62 into profit or loss.including: Changes in fair value of investments in other equity instruments Other comprehensive income under the equity method cannot be reclassified into profit or loss 241Bengang Steel Plates Co. Ltd. Annual Report 2024 Current period Less: amount Income after recognized in Income after Amounts tax OCI in the tax Less: transfer Items 2023/12/31 before attributable to 2024/12/31 previous period Less: income tax attributable to to retain corporate non- transfer to PL owners of the earnings income tax controlling in current Company interests period Changes in fair value of investments in other equity -50371341.88 -41036785.20 1999069.54 -43035854.74 -93407196.62 instruments Changes in fair value of company's credit risk Other 2．Items can be reclassified into profit or loss Total -50371341.88 -41036785.20 1999069.54 -43035854.74 -93407196.62 242Bengang Steel Plates Co. Ltd. Annual Report 2024 (36) Special Reserves Items 2023/12/31 Increase Decrease 2024/12/31 Safety production 163055.0472180947.9071534353.29809649.65 cost Total 163055.04 72180947.90 71534353.29 809649.65 (37) Surplus Reserves Items 2023/12/31 Increase Decrease 2024/12/31 Statutory surplus 1195116522.371195116522.37 reserves Total 1195116522.37 1195116522.37 (38) Undistributed Profits Items Current period Previous period Before adjustments: undistributed profits at last -2414685928.92-720559670.73 year-end Adjustments of the beginning distributed profits 26745438.81 (increase + / decease -) After adjustments: undistributed profit at this -2414685928.92-693814231.92 year-beginning Add: undistributed profit belonging to parent -5037271398.28-1720871697.00 company Less: Statutory surplus reserves Discretionary reserves General risk reserves Common shares dividend payable 45054305.70 Common shares dividend transferred to paid-in capital Ending balance of undistributed profits -7497011632.90 -2414685928.92 The details of Adjustments of the beginning distributed profits: 243Bengang Steel Plates Co. Ltd. Annual Report 2024 The change in the scope of consolidation due to the merger of companies under common control affected the retained earnings at the beginning of the year by RMB 26745438.81. (39) Operating income and operating cost 1. Operating income and operating cost Current period Previous period Items Revenue Cost Revenue Cost Principal 50512152677.6953926439230.7056816581034.6457338067687.30 business Other 754208823.53767317574.731140720682.381112281082.13 business Total 51266361501.22 54693756805.43 57957301717.02 58450348769.43 2. Details about operating income and operating cost Principal business Principal business Other business Other business Item Revenue Cost Revenue Cost Classification by the time of commodity transfer Including: recognize at a certain point in 50512152677.69 53926439230.70 747028972.63 764941783.53 time -Recognize over a certain period 7179850.90 2375791.20 of time Total 50512152677.69 53926439230.70 754208823.53 767317574.73 Classification by 27942407986.74 28743063625.90 422131300.06 434178194.37 business area Including：Domestic 41406346909.19 44528902766.42 754208823.53 767317574.73 Abroad 9105805768.50 9397536464.28 Total 50512152677.69 53926439230.70 754208823.53 767317574.73 (40) Tax and surcharges 244Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Current period Previous period Environmental tax 25266354.57 38630331.48 City maintenance and construction tax 10385897.62 11150706.61 Educational surcharge 7465694.70 8101593.37 Resource Tax 750000.00 Housing property tax 85712608.51 83490037.56 Land use right tax 14382618.16 13582798.86 Vehicle and vessel tax 224158.74 221617.12 Stamp duty 58834787.91 60062008.36 Others 21247.15 482887.50 Total 203043367.36 215721980.86 (41) Selling and distribution expenses Items Current period Previous period Import and export agency fee 52584810.12 41191981.29 Salary and benefits 67395074.92 79109440.68 Storage and warehousing fee 1977289.68 6434329.15 Others 20681443.05 22923349.16 Total 142638617.77 149659100.28 (42) General and administrative expenses Items Current period Previous period Salary and benefits 351493964.20 348794437.95 Insurance fee 12995462.13 12429399.87 Depreciation 55331155.82 41188990.43 Repair expense 4037864.04 2070654.97 Professional service expenses 13588178.36 11050833.74 Office Expenses 1330341.46 1260483.68 Business Travel Expenses 2905590.74 2908581.66 Greening Fee 2563843.56 9035946.93 245Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Current period Previous period Others 258542011.52 190938087.82 Total 702788411.83 619677417.05 (43) Research and development expenses Items Current period Previous period Depreciation materials and 86415509.2981247560.73 compensation etc.Total 86415509.29 81247560.73 (44) Financial expenses Items Current period Previous period Interest expenses 384713981.73 415219929.72 including: Interest expenses for lease 62948951.5855152158.88 liabilities Less: Interest income 43019766.05 56283070.97 Exchange losses -112286393.26 -59468641.72 Others 10923494.40 8564825.20 Total 240331316.82 308033042.23 (45) Other income Previous Items Current period period Withholding fee income 401253.23 919436.96 VAT tax relief 48812224.61 394898.00 Tax refund 86963574.36 27685686.22 Industrial Economy Stabilization and Growth Incentive Fund 50000.00 Special Incentive Funds for Business Stable development 2184600.00 Measures Hengda Logistics Park Land Subsidy 19009956.00 21309956.00 Science & Technology Funds 300000.00 246Bengang Steel Plates Co. Ltd. Annual Report 2024 Previous Items Current period period Fiscal Support Funds 110000.00 High-tech Enterprise Grant 100000.00 Employee Retention and Training Subsidy for Labor 2358.49 Development of Gen-3 AHSS for Vehicles 580000.00 580000.00 Desulfurization and Denitrification Project of Coal-fired Boiler 600000.00600000.00 in High-pressure Workshop of Bengang Power Plant Advanced Treatment Project of Carbon Fiber Wastewater in 1900000.001900000.00 Dongfeng Plant Area of Plate Coking Plant Special Tank Passivation Project under Bai-Qian-Wan Talent 50000.00 Program Second Sintering Finishing Dust Removal Ultra-low Emission 410000.00410000.00 Reconstruction Project Plate factory area converter Gas Recovery and Efficiency 2420000.002420000.00 Improvement Project Central Government Environmental Protection Award Fund 21088000.00 21088000.00 2021 Intellectual Manufacturing Strong Province Special Fund 960000.00960000.00 （Digital and Networked Upgrade） 2023 Automatic-Approval Special Fund (National Green Design Product-- Hot-Rolled High-Strength Steel Sheets/Strips for 500000.00 Automotive Applications in 2022) 2022 Intellectual Manufacturing Strong Province Special Fund 20000000.00 Xingliao Talent Program Government Grant 46500.00 113500.00 Mechanism and Control of Rare Earth Oxysulfides on 70200.00212228.30 Plasticization Behavior in Automotive Steels 2022 Liaoning Provincial Natural Science Foundation Program 1600.00 Funds Design and Physicochemical Properties of Metallurgical Slag 15175.5022651.00 Systems for Rare Earth Steelmaking 2023 Intellectual Manufacturing Province Initiative (Benxi Steel 1700000.00 Technology Center Innovation Capability Enhancement) 2021 Municipal-Level Skills Master Workstation Fee 56454.88 81.03 247Bengang Steel Plates Co. Ltd. Annual Report 2024 Previous Items Current period period 2020 Ecological Civilization Construction Special Project 4000000.00 (Special Steel EAF Upgrading Project) 2021 Intellectual Manufacturing Strong Province Special Fund 1620000.00 Benxi Steel Automotive Sheet Engineering Laboratory -745133.80 Construction Project 2020 Provincial-Level Skills Master Workstation Fee 63799.16 2022 Provincial-Level Skills Master Workstation Fee 67743.97 Flue Gas Desulfurization and Denitrification Project for No.5 4092000.00 Furnace Group & 4B Coke Oven at Plate Ironmaking Plant Triple Dust Removal Retrofit for Roof Hoods of No.4/5/6 2922000.00 Converters at Plate Steelmaking Plant Dust Removal Retrofit for Hot Metal Pretreatment Station of 1932600.00 Steelmaking Converters Liaoning Provincial Standardization Subsidy 10000.00 2019 Provincial-Level Skills Master Workstation Fee 100000.00 Total 200140947.91 100870396.00 (46) Investment income Items Current period Previous period Income on long-term equity investment by equity method -1497124.69 -1085968.20 Income on long-term equity investment by cost method Income on disposal of long-term equity investment -294462.57 Gain from debt restructuring 6496818.35 5179346.89 Others -47967315.58 -6604705.25 Total -42967621.92 -2805789.13 (47) Credit impairment loss 248Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Current period Previous period Loss from bad debts of account receivable -51156620.60 -21955575.63 Loss from bad debts of other receivables 1013615.40 11934237.01 Total -50143005.20 -10021338.62 (48) Asset impairment loss Items Current period Previous period Inventory and contract fulfillment cost 278486334.4215745868.44 impairment loss Fixed assets impairment loss 19593534.81 Total 278486334.42 35339403.25 (49) Assets disposal gains The amount recognized in non- Items Current period Previous period recurring profit Fixed assets 13020778.49 298940955.41 13020778.49 Total 13020778.49 298940955.41 13020778.49 (50) Non-operating income The amount Items Current period Previous period recognized in non- recurring profit Non-current assets scrapped 3307408.9222695633.313307408.92 gains Donation 116390.00 Government grants unrelated to operational activities Compensation for breach of 8649121.972808857.098649121.97 contract Unpayable accounts payable 208933.5510136697.80208933.55 (Debt settlement income) 249Bengang Steel Plates Co. Ltd. Annual Report 2024 The amount Items Current period Previous period recognized in non- recurring profit Inventory Surplus Gains Others 33623658.14 7651073.78 33623658.14 Total 45789122.58 43408651.98 45789122.58 (51) Non-operating expense The amount Items Current period Previous period recognized in non- recurring profit Non-current assets scrapped 52327212.3188675217.0252327212.31 loss Donation Compensation liquidated 1544793.575907021.851544793.57 damages and fines Others 835992.86 516843.20 835992.86 Total 54707998.74 95099082.07 54707998.74 (52) Income tax expenses 1. Income tax expense Items Current period Previous period Income tax payable for the current year 73650531.92 90256101.15 Deferred income tax 16786257.16 10723190.66 Total 90436789.08 100979291.81 2. Accounting profit and income tax expense adjustment process Items Current period Total profit -4869680628.18 Income tax expense calculated according to the official or applicable tax -730452094.23 rate 250Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Current period Effect of different tax rates applied by subsidiaries 12067535.66 Effect of adjustment of the income tax expense of prior period -25199.16 Effect of non-taxable income -10032409.88 Effect of undeductible costs expenses or losses -52093340.99 Effect of use of deductible losses of unrecognized deferred tax asset of -1372496.13 prior period Effect of deductible temporary differences or deductible losses of 857881224.03 unrecognized deferred tax assets of current period Effect of tax rate changes on the opening balance of deferred tax 48619985.52 assets/liabilities Others -34156415.74 Income tax expenses 90436789.08 (53) Notes of statement of cash flows 1. Cash related to operating activities （1）Cash received related to other operating activities Items Current period Previous period Collection of current accounts and advance 20707880.7732840546.95 payment on behalf Interest income 43019928.42 56265090.97 Special subsidy income 61603389.34 149050517.00 Non-operating income 45108931.60 8484226.41 Others 72901959.17 56815488.47 Total 243342089.30 303455869.80 （2）Cash paid related to other operating activities Items Current period Previous period Current accounts 31632625.15 33794608.51 Administrative expenses 160290483.72 88066781.99 Selling expenses 43283792.38 9993368.25 251Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Current period Previous period Charges 3227037.36 4815379.76 Others 167670609.80 296499108.11 Total 406104548.41 433169246.62 2. Cash related to financing activities （1）Other cash received in relation to financing activities Item Current period Previous period Notes letter of guarantee and letter of credit margins 3808123889.76 1128377111.10 Recovery of short-term borrowing funds for designated payments 80017980.00 Total 3808123889.76 1208395091.10 （2）Other cash paid in relation to financing activities Item Current period Previous period Notes letter of guarantee and letter of credit margins 4871226556.86 1982167947.91 Short-term borrowing funds for designated payments 97811412.73 Lease payments 68842727.36 40645381.40 Total 4940069284.22 2120624742.04 (54) Supplementary details of statement of cash flows 1. Supplementary details for statement of cash flows Items Current period Previous period 1. A reconciliation of net profit to cash flows from operating activities: Net profit -4960117417.26 -1648368377.81 Add: Credit impairment loss -50143005.20 -10021338.62 Asset impairment loss 278486334.42 35339403.25 Depreciation of fixed assets 1635677342.74 1633702512.74 Depletion of oil and gas assets Depreciation of right of use assets 77920658.71 60374534.52 252Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Current period Previous period Amortization of intangible assets 9634760.52 9086897.28 Long-term deferred expenses Losses proceeds from disposal of PPE intangible assets and other long-term assets (Earnings -13020778.49 -298940955.41 marked“－”) Scrapped losses from fixed assets (Earnings 49019803.3965979583.71 marked“－”) Losses in fair value change (Earnings marked“－”) Financial expenses (Earnings marked“－”) 272427588.47 355751288.00 Investment losses (Earnings marked“－”) 42967621.92 2805789.13 Deferred tax assets reduction (Addition marked“－”) 93801445.51 25816824.26 Deferred tax liabilities increased (Reduction -77015188.35-15093633.60 marked“－”) Reduction of inventory (Addition marked“－”) 157980745.75 765997477.35 Operating receivable items reduction (Addition 1927753242.95-61764765.72 marked“－”) Operating payable items increase (Less marked"－") 1654268244.56 3427623500.88 Others 646594.61 -2054858.73 Net cash flows generated from operating activities 1100287994.25 4346233881.23 2. Payments of investing and financing activities not involving cash: Liabilities transferred to capital Convertible bonds due within one year Fixed assets financed by leasing 3. The net increase in cash and cash equivalents: Ending balance of cash 1590205218.91 1199685408.38 Less: Beginning balance of cash 1199685408.38 1296663626.79 Add: Ending balance of cash equivalents Less: Opening balance of cash equivalents The net increase in cash and cash equivalents 390519810.53 -96978218.41 2. The structure of cash and cash equivalents 253Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Current period Previous period 1. Cash 1590205218.91 1199685408.38 Including: Cash on hand Bank deposits available on demand 1590205218.91 1199685408.38 2. Cash equivalents 1590205218.91 1199685408.38 Including: Cash and cash equivalents limited to use by the parent company of other subsidiary in the group (55) Foreign currency monetary items 1. Foreign currency monetary items Ending balance in Ending balance Item Exchange rate foreign currency translated to RMB Cash and cash equivalents 326240125.79 Including: USD 45384220.89 7.1884 326239933.43 EUR HKD 207.73 0.9260 192.36 Non-current liabilities due 1070731.20 within one year Including: USD JPY 23176000.00 0.0462 1070731.20 Long-term loans 2141462.40 Including: USD JPY 46352000.00 0.0462 2141462.40 254Bengang Steel Plates Co. Ltd. Annual Report 2024 8. Changes in the scope of consolidation (1) Business combination under common control 1. Business combination under common control that occurred during the current period Proportion of equity Income of the Net profit of the acquired Basis for business Date of Basis for acquiree from the acquiree from Income of the Net profit of the Acquiree combination under determining the beginning of the the beginning of acquiree during acquiree during under common control acquisition acquisition date current period to the current the comparative the comparative business combination acquisition date period to period period acquisition date North Hengda Belongs to Bengang 31 Dec Obtain control of 100.00%3489660655.6216120746.074195490104.8621702466.92 Logistics Co. Ltd. Group Co. Ltd. 2024 acquiree 255Bengang Steel Plates Co. Ltd. Annual Report 2024 2. Cost of acquisition North Hengda Logistics Co. Ltd.Cash 196619544.86 Book value of non-cash assets Book value of debt issued or assumed Face value of equity securities issued Contingent consideration Total cost of acquisition 196619544.86 3. Book value of the acquiree's assets and liabilities on the date of acquisition North Hengda Logistics Co. Ltd.Items Date of acquisition End of previous period Assets: 454806458.37 439545944.50 Cash and cash equivalents 3418003.07 15403313.71 Notes receivable 847348.53 Accounts receivable 16199375.32 11426487.15 Prepayments 113335267.42 95335134.63 Other receivables 156055.40 153596.76 Inventory 67607758.74 61178879.63 Other current assets 711035.19 Fixed assets 147903478.23 146017923.09 Intangible assets 105475485.00 107797881.00 Other non-current assets 1385380.00 Liabilities: 285144589.18 240989826.88 Accounts payable 5631398.91 4958444.25 Notes payable 5946820.98 Prepayments 64831.80 143119.29 Contract liabilities 103961914.19 70738069.86 Employee benefits payable 259340.04 150551.83 Taxes payable 1051704.41 2236126.19 Other accounts payable 143566519.88 111089639.57 Other current liabilities 11561407.95 7669626.91 256Bengang Steel Plates Co. Ltd. Annual Report 2024 North Hengda Logistics Co. Ltd.Items Date of acquisition End of previous period Deferred income 19047472.00 38057428.00 Net assets 169661869.19 198556117.62 Less: Non-controlling shareholders' equity Net assets acquired 169661869.19 198556117.62 9. Interests in other entities (1) Equity in subsidiaries 1. Constitution of enterprise group Shareholding Principal Name of Registered Registrat Nature of ratio(%) Acquisition place of subsidiary Capital ion place Business Dire Indire method business ct ct Guangzhou Bengang Steel 200 million Guangzh Guangzho Sales 100 Establishment & Iron Trading ou u Co. Ltd Shanghai Bengang Metallurgy 230 million Shanghai Shanghai Sales 100 Establishment Science and Technology Co. Ltd Dalian Benruitong Automobile 100 million Dalian Dalian Manufacturi 65 Establishment Material ng Technology Co. Ltd Bengang Business POSCO Cold- combination 1.92 billion Benxi Benxi Manufacturing 75 under rolled Sheet common Co. Ltd. control Changchun Business Bengang Steel 30 million Changch Changchu combination un n Sales 100 under & Iron Trading common Co. Ltd. control Business Yantai Bengang combination Steel Sales Co. 200 million Yantai Yantai Sales 100 under Ltd. common control Tianjin Business 200 million Tianjin Tianjin Sales 100 combination Bengang Steel under 257Bengang Steel Plates Co. Ltd. Annual Report 2024 Shareholding Principal Name of Registered Registrat Nature of ratio(%) Acquisition place of subsidiary Capital ion place Business Dire Indire method business ct ct Trading Co. common Ltd. control Benxi Bengang Steel & Iron 30 million Benxi Benxi Sales 100 Establishment Sales Co. Ltd.Shenyang Bengang Metallurgy 200 million Shenyang Shenyang Sales 100 Establishment Science and Technology Co. Ltd Business North Hengda combination Logistics Co. 150 million Benxi Benxi Manufacturing 100 under Ltd. common control 2. Important non-wholly owned subsidiaries Proportion Profits and losses Dividend of non- attributing to declared to Ending Name of the subsidiaries controlling non-controlling distribute to balance of non- interests shareholders non-controlling controlling shareholders interests Bengang POSCO Cold- rolled Sheet Co. Ltd. 25.00% 75232486.43 54632794.65 596689027.87 258Bengang Steel Plates Co. Ltd. Annual Report 2024 3. Key financial information of significant but not wholly-owned subsidiaries Name of the 2024/12/31 2023/12/31 Current assets Non-current Non- Non- assets Total assets Current Non-current Current subsidiaries liabilities current Total liabilities Current assets assets Total assets liabilities current Total liabilities liabilities liabilities Bengang POSCO Cold- rolled Sheet Co. 6390756526.72 986052997.62 7376809524.34 4990053412.86 4990053412.86 3314945506.13 958741994.50 4273687500.63 1969330156.26 1969330156.26 Ltd.Current period Previous period Operating Total Cash flow from Total Cash flow from Name of the subsidiaries Net profit comprehensive operating Operating comprehensive operating income income activities Net profit income income activities Bengang POSCO Cold- - rolled Sheet Co. Ltd. 8387472486.78 300929945.71 300929945.71 400460284.37 8939304737.19 273163973.25 273163973.25 492826903.06 259Bengang Steel Plates Co. Ltd. Annual Report 2024 (2) Interests in joint ventures or associated enterprises 1. Summarized financial information of insignificant joint ventures and associates 2024/12/31 or current 2023/12/31 or previous period period Associated enterprises: Total book value of investments 45413221.72 46910346.41 Total of the following items calculated based on shareholding ratio -Net profit -1497124.69 -1085968.20 -Other comprehensive income -Total comprehensive income -1497124.69 -1085968.20 10. Government Subsidies (1) Types amounts and reporting items of government subsidies 1. Government grants included in current profit or loss Accounting subjects Current period Previous period Other income 150827470.07 99556061.04 260Bengang Steel Plates Co. Ltd. Annual Report 2024 2. Liabilities involving government subsidies Amounts recognized in Amounts non-operating recognized in Offset costs or Liabilities 2023/12/31 Addition income during other income expenses Other 2024/12/31 Asset-related/income- changes related the current during the during the current period current period period Deferred Asset-related/income- 174142383.1861766472.3861989768.09173919087.47 income related 261Bengang Steel Plates Co. Ltd. Annual Report 2024 11. Risks associated with financial instruments (1) Various risks arising from financial instruments The Company's principal financial instruments include other equity instruments investments borrowings receivables payables etc. A detailed description of each financial instrument is set out in note VI. The risks associated with these financial instruments and the risk management policies adopted by the Company to mitigate these risks are described below. The Company's management manages and monitors these exposures to ensure that these risks are contained within defined limits.The objective of the Company's risk management is to strike an appropriate balance between risk and return minimize the negative impact of risk on the Company's operating results and maximize the benefits of shareholders and other equity investors. Based on this risk management objective the Company's basic risk management strategy is to determine and analyze the various risks faced by the company establish an appropriate risk tolerance bottom line and risk management and timely and reliable supervision of various risks to control the risks within the limited scope. 1. Credit Risk As of December 31 2024 the largest credit risk exposure that may cause financial losses to the Company mainly comes from the losses of the Company's financial assets caused by the failure of the other party to the contract to perform its obligations including: The carrying amount of financial assets recognized in the consolidated balance sheet; for financial instruments measured at fair value the carrying value reflects its risk exposure but not the maximum risk exposure and its maximum risk exposure will change with future changes in fair value.In order to reduce credit risk the Company has established a special department to determine credit limits conduct credit approval and implement other monitoring procedures to ensure that necessary measures are taken to recover overdue debts. In addition the Company reviews the recovery of each single receivable on each balance sheet date to ensure that sufficient bad debt reserves are set aside for unrecoverable amounts. Therefore the management of the Company believes that the credit risk borne by the Company has been greatly reduced.The Company's working capital is deposited in financial institutions with higher credit ratings and therefore the credit risk of working capital is lower. 2. Liquidity Risk 262Bengang Steel Plates Co. Ltd. Annual Report 2024 Liquidity risk is the risk that the Company will not be able to meet its financial obligations on the maturity date. The Company manages liquidity risk by ensuring that it has sufficient liquidity to meet its obligations as they mature without causing unacceptable losses or damaging the reputation of the business. The Company regularly analyzes the structure and maturity of its liabilities to ensure that it has sufficient funds. The Company's management monitors the use of bank borrowings and ensures compliance with loan agreements. It also negotiates financing with financial institutions to maintain a certain credit line and reduce liquidity risk.The Company's various financial liabilities are listed as follows by maturity date with undiscounted contractual cash flows: 263Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/31 Items Immediate Total undiscounted Within 1 year 1-2 years 2-5 years Over 5 years Book value repayment contract amount Short-term 371055490.50371055490.50371055490.50 loans Notes 12982703669.8612982703669.8612982703669.86 payable Accounts 2680864210.1561748259.4819146969.732761759439.362761759439.36 payable Other 1703827958.01394969845.27255896396.732354694200.012354694200.01 payables Long-term loans (including long-term loans due 805270731.20 922270731.20 1969670731.20 3697212193.60 3697212193.60 within one year) Lease liabilities (including lease liabilities 118242710.82 109583860.29 782383488.53 741944237.69 1752154297.33 1752154297.33 due within one year) Bonds payable 106989474.64 5569899459.53 5676888934.17 5676888934.17 264Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/31 Items Immediate Total undiscounted Within 1 year 1-2 years 2-5 years Over 5 years Book value repayment contract amount (including bonds payable due within one year) Total 18768954245.18 7058472155.77 3027097586.19 741944237.69 29596468224.83 29596468224.83 2023/12/31 Items Immediate Total undiscounted Within 1 year 1-2 years 2-5 years Over 5 years Book value repayment contract amount Short-term 328000000.00328000000.00328000000.00 loans Notes 10370940819.8710370940819.8710370940819.87 payable Accounts 2782483183.309101689.7017704689.552809289562.552809289562.55 payable Other 1359684122.47359046485.018349000.001727079607.481727079607.48 payables Long-term loans (including 562310473.60 802070731.20 921655969.60 2286037174.40 2286037174.40 265Bengang Steel Plates Co. Ltd. Annual Report 2024 2023/12/31 Items Immediate Total undiscounted Within 1 year 1-2 years 2-5 years Over 5 years Book value repayment contract amount long-term loans due within one year) Lease liabilities (including lease liabilities 41921209.72 44789055.69 625123027.34 672515169.42 1384348462.17 1384348462.17 due within one year) Bonds payable (including bonds payable due 81650008.44 106989474.64 5344392201.74 5533031684.82 5533031684.82 within one year) Total 15526989817.40 1321997436.24 6917224888.23 672515169.42 24438727311.29 24438727311.29 266Bengang Steel Plates Co. Ltd. Annual Report 2024 3. Market Risk Market risk of financial instruments refers to the risk that the fair value or future cash flows of financial instruments fluctuate due to changes in market prices including exchange rate risk interest rate risk and other price risks. （1）Interest rate risk Interest rate risk refers to the risk that the fair value of a financial instrument or future cash flows will fluctuate due to changes in market interest rates.The interest rate risk faced by the Company mainly arises from floating-rate bank deposits and floating-rate loans which expose the Company to cash flow interest rate risk. The Company has not yet formulated a policy to manage its interest rate risk but the management will carefully select financing methods combining fixed and floating rates and combining short-term debt with long-term debt. Use effective interest rate risk management methods to closely monitor interest rate risks control the scale of floating rate loans and use interest rate swaps when necessary to achieve the expected interest rate structure. （2）Exchange rate risk Exchange rate risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in foreign exchange rates.The exchange rate risk borne by the Company is mainly related to the US dollar Hong Kong dollar Japanese yen and euro. Except for the Company's small amount of raw material purchases and finished product sales settled in US dollars Hong Kong dollars Japanese yen and euros the Company's other major business activities are settled in RMB. As of December 31 2024 the assets or liabilities described in the following table are the balances of US dollars Hong Kong dollars Japanese yen and euros shown in the items: Items 2024/12/31 2023/12/31 Cash and cash equivalents - USD 45384220.89 81951964.90 Cash and cash equivalents - HKD 207.73 5992191.45 Cash and cash equivalents - EUR 408004.95 Non-current liabilities due within one year - JPY 23176000.00 23176000.00 Long-term loans - JPY 46352000.00 69528000.00 (2) Transfer of financial assets 1. Transfer of financial assets 267Bengang Steel Plates Co. Ltd. Annual Report 2024 Financial asset Transferred financial assets Information of Basis of transfer method derecognition Nature Amount derecognition Retains substantially Bill endorsement/bill Notes all of its risks and Receivable 316325335.70 Not derecognized rewards including the discount default risk associated with it Bill endorsement/bill Receivables Almost all of its risks Financing 3181702865.55 Derecognized and rewards have discount been transferred Total 3498028201.25 Notes to the basis of derecognition: As of December 31 2024 the maturity date of accounts receivable financing is 1 to 12 months. According to the relevant provisions of the Bills of Exchange Law if the accepting bank refuses to pay the holder has the right to claim against the Company. The Company believes that the Company has transferred almost all its risks and rewards and therefore fully terminate the recognition of its and related settled accounts payable and confirm the discount fees. 2. Financial assets derecognized due to transfer Methods of transferring Amount of Gains or losses related Items derecognition to derecognition financial assets Accounts Bill endorsement/bill receivable 3181702865.55 10279144.39 discounting financing Total 3181702865.55 10279144.39 12. Disclosure of fair value The input value used in fair value measurement is divided into three levels: The input value of the first level is the unadjusted quotation of the same asset or liability that can be obtained on the measurement date in an active market.The input value of the second level is the input value of the related assets or liabilities that is directly or indirectly observable except the input value of the first level.The third level of input value is the unobservable input value of related assets or liabilities.The level to which the fair value measurement result belongs is determined by the lowest level to which the input value that is important to the fair value measurement as a whole belongs. (1) Fair value of assets and liabilities measured at fair value at the end of the period 268Bengang Steel Plates Co. Ltd. Annual Report 2024 Fair value at the end of the period Items First level Second level Third level fair fair value fair value value measurement measurement measurement Total 1. Continuous fair value measurement Accounts receivable financing 64399942.70 64399942.70 Other equity instrument 933426254.63933426254.63 investments 13. Related parties and related transactions (1) Details of parent company Name of parent Place of Business Registered Share Voting company Registry nature capital proportion (%) rights (%) Benxi Steel & Iron Benxi RMB 8 Manufacturing 58.65 58.65 (Group) Co. Ltd. Liaoning billion The ultimate controlling party of the Company: Ansteel Group Co. Ltd. (2) Details of the Company’s subsidiariesFor details of the Company’s subsidiaries please refer to Note 7 “Equity in OtherEntities”. (3) The company's joint ventures and associates For details of the Company's important joint ventures or associates please refer to Note 7 “Equity in Other Entities”.Other joint ventures or associates that had related-party transactions with the Company during the current period or had balances resulting from related-party transactions with the Company in prior periods are described below: Name of joint venture or associated enterprise Relationship Shenyang Xiangyu New Materials Technology Co. Ltd. Associate (4) Other related parties 269Bengang Steel Plates Co. Ltd. Annual Report 2024 Relationship between other related Name of other related parties parties and the Company Parent company's controlling Bengang Group Co. Ltd.shareholder Bengang Stainless Steel Cold Rolling Dandong Co. Ltd. Same parent company Benxi Iron and Steel (Group) Real Estate Development Same parent company Co. Ltd.Benxi Iron and Steel (Group) Engineering Construction Same parent company Supervision Co. Ltd.Benxi Iron and Steel (Group) Machinery Manufacturing Same parent company Co. Ltd.Benxi Iron and Steel (Group) Construction Co. Ltd. Same parent company Benxi Iron and Steel (Group) Mining Co. Ltd. Same parent company Benxi Iron and Steel (Group) Thermal Power Development Same parent company Co. Ltd.Benxi Steel & Iron (Group) Steel & Iron Process and Same parent company Logistics Co. Ltd.Benxi Iron and Steel (Group) Industrial Development Co.Same parent company Ltd.Benxi Iron and Steel (Group) Information Automation Co.Same parent company Ltd.Benxi Iron & Steel (Group) Metallurgical Slag Co. Ltd. Same parent company Benxi Iron and Steel (Group) Mining Yanjia Valley Same parent company Limestone Mine Co. Ltd.Benxi Iron and Steel (Group) Mining Liaoyang Ma'erling Same parent company Pellet Co. Ltd.Benxi Iron and Steel (Group) Mining Liaoyang Jiajiaobao Same parent company Iron Mine Co. Ltd.Benxi Iron and Steel (Group) Mining Mineral Resources Same parent company Development Co. Ltd.Benxi Iron and Steel (Group) Mining Construction Same parent company Engineering Co. Ltd.Benxi New Industrial Development Co. Ltd. Same parent company Dalian Brollo Steel Pipe Co. Ltd. Same parent company 270Bengang Steel Plates Co. Ltd. Annual Report 2024 Relationship between other related Name of other related parties parties and the Company Liaoning Hengtai Heavy Machinery Co. Ltd. Same parent company Liaoning Metallurgical Technician College Same parent company Liaoning Metallurgical Vocational Technical College Same parent company Associated enterprises of the parent Bengang Electrical Co. Ltd.company Bengang Group International Economic and Trade Co.Belongs to Bengang Group Co. Ltd.Ltd.Benxi Beiying Iron and Steel (Group) Co. Ltd. Belongs to Bengang Group Co. Ltd.Liaoning Hengyi Steel Trade Co. Ltd. Belongs to Bengang Group Co. Ltd.Angang Electrical Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Scrap Resources (Anshan) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Processing & Distribution (Dalian) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Processing & Distribution (Changchun) Co.Belongs to Angang Group Co. Ltd.Ltd.Angang Steel Distribution (Hefei) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Distribution (Wuhan) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Rope Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Company Limited Belongs to Angang Group Co. Ltd.Angang Chemical Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Group International Economic & Trade Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Group Mining Gongchangling Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Group Automation Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Construction Group Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Metal Structure Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Mining Machinery Manufacturing Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Green Resources Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Energy Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Industrial Group (Anshan) Equipment Operation & Belongs to Angang Group Co. Ltd.Maintenance Co. Ltd.Angang Industrial Group Metallurgical Machinery Co.Belongs to Angang Group Co. Ltd.Ltd. 271Bengang Steel Plates Co. Ltd. Annual Report 2024 Relationship between other related Name of other related parties parties and the Company Angang Heavy Machinery Design & Research Institute Belongs to Angang Group Co. Ltd.Co. Ltd.Angang Heavy Machinery Co. Ltd. Belongs to Angang Group Co. Ltd.DeLin Industrial Products Co. Ltd. Belongs to Angang Group Co. Ltd.DeLin Land Port Supply Chain Services Co. Ltd. Belongs to Angang Group Co. Ltd.Guangzhou Angang Steel Processing Co. Ltd. Belongs to Angang Group Co. Ltd.Tianjin Angang Steel Processing & Distribution Co. Ltd. Belongs to Angang Group Co. Ltd.Changchun FAW Angang Steel Processing & Distribution Belongs to Angang Group Co. Ltd.Co. Ltd.Angang Group Engineering Technology Co. Ltd. Associate of Angang Group (5) Related-party transactions 1. Related party transactions of purchasing and selling goods and services Purchasing goods and services Content of Related parties related Current period Previous period transactions Angang Electrical Co. Ltd. Repair costs 1088249.99 988649.97 Raw materials Angang Scrap Resources (Anshan) and auxiliary 1124802017.73 655692228.69 Co. Ltd.materials Angang Steel Processing & Storage costs 2485.80 37433.12 Distribution (Changchun) Co. Ltd.Angang Steel Processing & Processing 1041620.631430380.27 Distribution (Changchun) Co. Ltd. costs Angang Steel Processing & Processing fee 131942.35 Distribution (Zhengzhou) Co. Ltd.Ansteel Engineering Technology Research & Design Institute (Anshan) Engineering fee 53000.00 Co. Ltd. 272Bengang Steel Plates Co. Ltd. Annual Report 2024 Content of Related parties related Current period Previous period transactions Auxiliary Angang Steel Company Limited 3161789.58 937641.12 materials Angang Steel Company Limited Steel 1526698.42 Angang Group Beijing Research Technical 820000.00 Institute Co. Ltd. service fee Angang Group Engineering Engineering fee 135490139.57 495812040.18 Technology Co. Ltd.Angang Group Engineering Repair fee 440000.00 663800.00 Technology Co. Ltd.Angang Group International Spare parts 350000.00 Economic & Trade Co. Ltd.Angang Group International raw fuel 185893033.73 369490000.25 Economic & Trade Co. Ltd.Angang Group Mining raw material 308667259.88 375015701.56 Gongchangling Co. Ltd.Angang Group Co. Ltd. service charge 6028.30 Anshan Iron & Steel Group Finance financial 843849.85 Company Limited services Ansteel Group Co. Ltd. Daily News Newspaper and 202442.20 Agency magazine fees Engineering Angang Group Automation Co. Ltd. 51010000.00 108215000.00 costs Angang Mining Automotive shipping fee 297872.02 Transportation Co. Ltd.Angang Industrial Group (Anshan) Equipment Operation & Maintenance Labor fee 9339387.20 Co. Ltd.Angang Industrial Group Spare parts 9439932.17 9254415.92 Metallurgical Machinery Co. Ltd.Angang Industrial Group Repair costs 1005720.00 1093480.00 Metallurgical Machinery Co. Ltd. 273Bengang Steel Plates Co. Ltd. Annual Report 2024 Content of Related parties related Current period Previous period transactions Angang Industrial Group Co. Ltd. Service fees 131145.12 Angang Heavy Machinery Design & Project costs 15865600.00 1478000.00 Research Institute Co. Ltd.Angang Heavy Machinery Co. Ltd. Spare parts 5579332.42 4130873.60 Project Angang Heavy Machinery Co. Ltd. 1725616.00 3627700.00 materials Conference and Anshan Angang International Travel business travel 3312463.08 3771073.93 Agency Co. Ltd.service fees Anshan Iron & Steel Labor Research Safety 15622.64 Institute Technology Co. Ltd. production fees Anshan Iron & Steel Metallurgical Auxiliary Furnace Material Technology Co. 26520619.29 20592124.94 materials Ltd.Anshan Jianbo Engineering Testing Engineering 238000.00 Co. Ltd. costs Raw and Angang Steel Rope Co. Ltd. auxiliary 402320.80 materials Engineering Angang Construction Group Co. Ltd. 101060733.94 costs Raw and Angang Energy Technology Co. Ltd. auxiliary 116947.24 materials Business Beijing Tianhongshan Hotel Co. Ltd. entertainment 2064.00 expenses Bengang Electrical Co. Ltd. Spare parts 238000.00 181875.00 Auxiliary Bengang Electrical Co. Ltd. 182031804.01 134365349.92 materials Bengang Electrical Co. Ltd. Repair costs 14005845.47 10918383.89 274Bengang Steel Plates Co. Ltd. Annual Report 2024 Content of Related parties related Current period Previous period transactions Engineering Bengang Electrical Co. Ltd. 4899146.41 costs Bengang Gaoyuan Industrial Auxiliary 1099758.00929311.04 Development Co. Ltd. materials Bengang Gaoyuan Industrial Engineering 7775792.864631760.00 Development Co. Ltd. costs Bengang Gaoyuan Industrial Software 186509.43 Development Co. Ltd.Bengang Gaoyuan Industrial Repair costs 5034146.00 2328495.00 Development Co. Ltd.Benxi Steel Group Dalian Refractories Packaging 281412.93 Co. Ltd.Benxi Steel Group Dalian Refractories Auxiliary 143103.40 Co. Ltd. materials Bengang Group International Agency service 78435468.9361290890.44 Economic and Trade Co. Ltd. fees Bengang Group Co. Ltd. Service fees 1683819.02 Benxi Aiko Hydraulic Sealing Co.Spare parts 7083761.45 6297816.12 Ltd.Benxi Aiko Hydraulic Sealing Co. Engineering 43000.00117514.00 Ltd. costs Raw materials Benxi Northern Iron Industry Co. Ltd. 201837093.10 303625003.05 and fuel Benxi Beiying Iron and Steel (Group) Labor costs 73598631.48 73782240.24 Co. Ltd.Benxi Beiying Iron and Steel (Group) Heating costs 11363267.27 13310207.04 Co. Ltd.Benxi Beiying Iron and Steel (Group) Repair costs 14147260.22 8807530.29 Co. Ltd.Benxi Beiying Iron and Steel (Group) Transportation 38944033.488032969.35 Co. Ltd. costs 275Bengang Steel Plates Co. Ltd. Annual Report 2024 Content of Related parties related Current period Previous period transactions Raw materials Benxi Beiying Iron and Steel (Group) auxiliary 11249866993.1310862670931.26 Co. Ltd. materials and fuel Benxi Beiying Iron and Steel (Group) Energy and 646206682.53619907820.37 Co. Ltd. power Benxi Beiying Iron and Steel (Group) Storage costs 9016.26 Co. Ltd.Benxi Iron and Steel (Group) Construction Electromechanical Installation 43034800.02 costs Engineering Co. Ltd.Benxi Iron and Steel (Group) Raw materials Electromechanical Installation 1153388.60 and spare parts Engineering Co. Ltd.Raw materials Benxi Dongfeng Lake Steel Resource auxiliary 30237287.9544370758.10 Utilization Co. Ltd. materials and fuel Benxi Iron and Steel (Group) Real Scrap steel 318201.40 Estate Development Co. Ltd.Benxi Iron and Steel (Group) Engineering Engineering Construction Supervision 1973663.48 2893311.49 costs Co. Ltd.Benxi Iron and Steel (Group) Logistics and 628386401.75636896070.98 International Trade Tengda Co. Ltd. port fees Raw materials Bengang Stainless Steel Cold Rolling and auxiliary 348937.34 Dandong Co. Ltd.materials Benxi Iron and Steel (Group) Raw materials 181132648.3573747200.55 Machinery Manufacturing Co. Ltd. auxiliary 276Bengang Steel Plates Co. Ltd. Annual Report 2024 Content of Related parties related Current period Previous period transactions materials and spare parts Benxi Iron and Steel (Group) Construction 16210213.3648057147.53 Machinery Manufacturing Co. Ltd. costs Benxi Iron and Steel (Group) Labor costs 36841060.54 11036444.38 Machinery Manufacturing Co. Ltd.Benxi Iron and Steel (Group) Repair costs 32903771.81 9039082.00 Machinery Manufacturing Co. Ltd.Benxi Iron and Steel (Group) Leasing costs 299057.14 717737.14 Machinery Manufacturing Co. Ltd.Benxi Iron and Steel (Group) Construction 114000.00 Inspection and Testing Co. Ltd. costs Benxi Iron and Steel (Group) Engineering Construction Advanced Decoration 554873.39 costs Co. Ltd.Safety Benxi Iron and Steel (Group) production 7021845.00 Construction Co. Ltd.costs Benxi Iron and Steel (Group) Raw materials 2823320.954049388.78 Construction Co. Ltd. and spare parts Benxi Iron and Steel (Group) Engineering 227018510.96364430836.36 Construction Co. Ltd. costs Benxi Iron and Steel (Group) Labor costs 37928559.17 11255747.63 Construction Co. Ltd.Benxi Iron and Steel (Group) Repair costs 56847478.43 34709635.27 Construction Co. Ltd.Benxi Iron and Steel (Group) Freight 88934.45 Construction Co. Ltd.Benxi Iron and Steel (Group) Mining Safety 958300.00 Construction Engineering Co. Ltd. production fee 277Bengang Steel Plates Co. Ltd. Annual Report 2024 Content of Related parties related Current period Previous period transactions Raw and Benxi Iron and Steel (Group) Mining auxiliary 259707.76 140320.00 Construction Engineering Co. Ltd.materials Benxi Iron and Steel (Group) Mining Engineering 15527451.1643916148.59 Construction Engineering Co. Ltd. cost Benxi Iron and Steel (Group) Mining Landscaping 330023.10 Construction Engineering Co. Ltd. fee Benxi Iron and Steel (Group) Mining Repair fee 16370420.00 12066104.00 Construction Engineering Co. Ltd.Benxi Iron and Steel (Group) Mining Raw materials 2504269802.79 2234070710.11 Liaoyang Ma'erling Pellet Co. Ltd.Raw materials Benxi Iron and Steel (Group) Mining and auxiliary 4591090218.87 3853939286.46 Co. Ltd.materials Benxi Iron and Steel (Group) Mining Spare parts 2248751.72 Co. Ltd.Benxi Iron and Steel (Group) Mining Labor costs 150042.14 Co. Ltd.Benxi Iron and Steel (Group) Mining Energy and 7476859.63 Co. Ltd. power Benxi Iron and Steel (Group) Thermal Office expenses 742575.27 Power Development Co. Ltd.Benxi Iron and Steel (Group) Thermal Scrap steel 104836.20 373267.40 Power Development Co. Ltd.Benxi Iron and Steel (Group) Thermal Heating costs 88239.27 797049.85 Power Development Co. Ltd.Benxi Steel & Iron (Group) Steel & Engineering 656078499.29449295500.86 Iron Process and Logistics Co. Ltd. costs Benxi Steel & Iron (Group) Steel & Labor costs 4034598.16 Iron Process and Logistics Co. Ltd. 278Bengang Steel Plates Co. Ltd. Annual Report 2024 Content of Related parties related Current period Previous period transactions Benxi Steel & Iron (Group) Steel & Repair costs 458468973.46 142853909.52 Iron Process and Logistics Co. Ltd.Benxi Steel & Iron (Group) Steel & Transportation 57065.002174824.48 Iron Process and Logistics Co. Ltd. costs Benxi Steel & Iron (Group) Steel & Raw materials 18163158.0512860462.92 Iron Process and Logistics Co. Ltd. and spare parts Benxi Iron and Steel (Group) Processing 18871781.53 Industrial Development Co. Ltd. costs Benxi Iron and Steel (Group) Labor costs 5016377.00 362000.00 Industrial Development Co. Ltd.Benxi Iron and Steel (Group) Repair costs 5402831.00 1155049.00 Industrial Development Co. Ltd.Benxi Iron and Steel (Group) Transportation 5580324.465862435.57 Industrial Development Co. Ltd. costs Raw materials Benxi Iron and Steel (Group) and auxiliary 281948794.02 37503759.27 Industrial Development Co. Ltd.materials Benxi Iron and Steel (Group) Engineering 316333.57 Industrial Development Co. Ltd. costs Benxi Iron and Steel (Group) Spare parts 7016883.54 3068409.30 Information Automation Co. Ltd.Benxi Iron and Steel (Group) Engineering 164712992.61 Information Automation Co. Ltd. costs Information system Benxi Iron and Steel (Group) operation and 32650000.00 Information Automation Co. Ltd.maintenance costs Benxi Iron and Steel (Group) Repair costs 4391141.90 Information Automation Co. Ltd. 279Bengang Steel Plates Co. Ltd. Annual Report 2024 Content of Related parties related Current period Previous period transactions Benxi Iron and Steel (Group) Transportation 14500000.00 Information Automation Co. Ltd. costs Raw materials Benxi Iron & Steel (Group) and auxiliary 239884805.78 Metallurgical Slag Co. Ltd.materials Benxi Iron and Steel (Group) Road Construction and Bridge Construction Engineering 1596283.35 costs Co. Ltd.Benxi Iron and Steel (Group) Road and Bridge Construction Engineering Raw materials 790211.60 Co. Ltd.Construction Benxi Steel (Group) 1454256.13 46971.56 costs Security and Benxi Steel (Group) fire fighting 35406267.46 costs Benxi Steel (Group) Labor costs 11495717.31 Benxi Steel (Group) Repair costs 3005000.00 320657100.00 Transportation Benxi Steel (Group) 216297.35 278654.36 costs Energy and Benxi Steel (Group) 283478.17 73134.75 power Raw materials Benxi Steel (Group) and auxiliary 422431.09 181824.33 materials Equipment Benxi Steel (Group) 9377880.96 3321904.00 verification Financial Benxi Steel (Group) 1397473.55 services Benxi Steel (Group) Heating costs 328521.69 280Bengang Steel Plates Co. Ltd. Annual Report 2024 Content of Related parties related Current period Previous period transactions Raw and Benxi Xihu Metallurgical Furnace auxiliary 192903880.17 207529292.47 Material Co. Ltd.materials Benxi New Industrial Development Service fee 1929906.33 574417.10 Co. Ltd.Benxi New Industrial Development Construction 181766.7424369.91 Co. Ltd. fee Business Benxi New Industrial Development entertainment 610742.00 Co. Ltd.fee Benxi New Industrial Development Welfare fee 1393665.39 Co. Ltd.Benxi New Industrial Development Rent fee 2920353.98 Co. Ltd.Chengdu Pangang Rongcheng Conference fee 949039.62 Mansion Co. Ltd.Auxiliary Dalian Brollo Steel Pipe Co. Ltd. 2043620.46 materials DeLin Industrial Products Co. Ltd. Office expenses 26228.80 Auxiliary DeLin Industrial Products Co. Ltd. materials and 31621116.30 74741575.57 spare parts DeLin Industrial Products Co. Ltd. Project costs 834704.34 DeLin Land Port Supply Chain Warehousing 732650.90246824.45 Services Co. Ltd. costs DeLin Land Port Supply Chain Logistics costs 728272.47 Services Co. Ltd.DeLin Land Port Supply Chain Sales service 3103633.08 Services Co. Ltd. fees DeLin Land Port Supply Chain Transportation 4636643.71568487.64 Services Co. Ltd. costs 281Bengang Steel Plates Co. Ltd. Annual Report 2024 Content of Related parties related Current period Previous period transactions Liaoning Hengtai Heavy Machinery Project costs 3856300.00 37188300.00 Co. Ltd.Liaoning Hengtai Heavy Machinery Labor costs 530585.00 350800.00 Co. Ltd.Liaoning Hengtai Heavy Machinery Repair costs 24024198.00 18645700.00 Co. Ltd.Liaoning Hengtai Heavy Machinery Transportation 191560.0078037.61 Co. Ltd. costs Liaoning Hengtai Heavy Machinery Raw materials 10051560.7610665788.41 Co. Ltd. and spare parts Liaoning Hengtong Metallurgical Raw materials 152452904.58133050407.42 Equipment Manufacturing Co. Ltd. and spare parts Liaoning Hengtong Metallurgical Repair costs 10198700.00 4914275.00 Equipment Manufacturing Co. Ltd.Liaoning Lide Internet of Things Co.Labor costs 192707239.82 35512505.43 Ltd.Liaoning Lide Internet of Things Co. Transportation 24602117.69 Ltd. costs Safety Liaoning Metallurgical Vocational production 566077.66 Technical College costs Liaoning Yitong Machinery Raw materials 12956330.578183307.29 Manufacturing Co. Ltd. and spare parts Liaoning Yitong Machinery Repair costs 24364.61 15272.60 Manufacturing Co. Ltd.Liaoning Yitong Machinery Engineering 21840.0018050.00 Manufacturing Co. Ltd. costs Pangang Group Chengdu Vanadium & Auxiliary Titanium Resources Development Co. 2361588.46 3573383.68 materials Ltd. 282Bengang Steel Plates Co. Ltd. Annual Report 2024 Content of Related parties related Current period Previous period transactions Pangang Group Engineering Engineering 736600.003535680.02 Technology Consulting Co. Ltd. costs Shanxi Materials International Energy Fuel 21171289.92 43561493.05 Co. Ltd.Tianjin Bengang Sheet Metal Storage fees 3549.41 Processing & Distribution Co. Ltd.Tianjin Bengang Sheet Metal Processing fees 1300732.50 Processing & Distribution Co. Ltd.Angang (Liaoning) Materials Technical 907452.84 Technology Co. Ltd. service fees Selling goods and services Related parties Content of related transactions Current period Previous period Angang (Hangzhou) Automotive Materials Technology Co. Ltd. Steel and steel products 2467535.99 2034371.33 Angang Steel Processing & Steel and steel products Distribution (Dalian) Co. Ltd. warehousing income processing 48381404.67 72575160.26 income Angang Steel Processing & Distribution (Changchun) Co. Steel and steel products 3171633.00 24513902.53 Ltd.Angang Steel Processing & Distribution (Zhengzhou) Co. Steel and steel products 10469864.30 Ltd.Angang Steel Distribution (Hefei) Co. Ltd. Steel and steel products 9172909.61 Angang Steel Distribution (Wuhan) Co. Ltd. Steel and steel products 1058038.90 55103512.47 Angang Steel Company Limited Steel and steel products 923408.47 1317394.48 Ansteel Guangzhou Automobile Steel Co. Ltd. Steel and steel products 371488.99 Angang Chemical Technology Co. Ltd. Steel and steel products 255050438.20 156801931.63 Angang Group Engineering Technology Co. Ltd. Chemicals and by-products 47707.68 39419.63 Angang Group International Economic & Trade Co. Ltd. Energy and power 228316260.00 Steel and steel products Angang Group Co. Ltd. chemicals and by-products energy 1613.64 and power Angang Group Mining Co. Ltd. Energy and power 6415.09 Angang Construction Group Co.Ltd. Energy and power 197984.99 Angang Mining Machinery Manufacturing Co. Ltd. Steel and steel products 30239734.42 283Bengang Steel Plates Co. Ltd. Annual Report 2024 Angang Heavy Machinery Design & Research Institute Co. Ltd. Energy and power 4853.78 Angang Green Resources Technology Co. Ltd. Raw and auxiliary materials 42248746.78 133922761.19 Angang Energy Technology Co.Ltd. Chemicals and by-products 25955120.37 23183781.78 Angang Group Energy-Saving Energy and power testing and Technology Services Co. Ltd. inspection 10778642.31 Ansteel Shenyang Steel Processing & Distribution Co. Steel and steel products Ltd. processing income 474927.84 Bengang Electrical Co. Ltd. Energy and power 107.35 621817.77 Benxi Steel Group Dalian Refractories Co. Ltd. Steel and steel products 5729788.15 Bengang Group Co. Ltd. Spare parts engineering materials energy and power 2823645.00 208112.60 Benxi Northern Iron Industry Co. Scrap steel raw and auxiliary Ltd. materials raw materials 84620440.80 192687665.61 Benxi Northern Rolling Co. Ltd. Raw materials and auxiliary materials 1305509.83 Benxi Beiying Iron and Steel (Group) Co. Ltd. Spare parts 272771274.28 282002512.53 Benxi Dongfeng Lake Steel Energy and power raw materials Resource Utilization Co. Ltd. and auxiliary materials 13323767.03 27512145.34 Benxi Iron and Steel (Group) Real Estate Development Co. Ltd. Energy and power 23160.82 74559.84 Benxi Iron and Steel (Group) Engineering Construction Energy and power 1909.73 2245.04 Supervision Co. Ltd.Benxi Iron and Steel (Group) Scrap steel steel and steel Machinery Manufacturing Co. products chemicals and by- Ltd. products processing income 18758862.2712911322.91 energy and power Benxi Iron and Steel (Group) Construction Co. Ltd. Energy and power 2009079.40 4299873.92 Benxi Iron and Steel (Group) Mining Construction Engineering Steel and steel products energy and power 272478.72 595139.57 Co. Ltd.Benxi Iron and Steel (Group) Mining Liaoyang Jiajiaobao Iron Energy and power 26844.93 55244352.50 Mine Co. Ltd.Benxi Iron and Steel (Group) Mining Liaoyang Ma'erling Pellet Energy and power fuel 57220544.58 83205175.45 Co. Ltd.Benxi Iron and Steel (Group) Storage income steel and steel Mining Co. Ltd. products 7358539.02 559201878.94 Benxi Iron and Steel (Group) Thermal Power Development Co. Chemicals and by-products 46021096.45 66722210.85 Ltd. energy and power fuel Benxi Steel & Iron (Group) Steel & Iron Process and Logistics Co. Storage income steel and steel products energy and power 15603447.07 10477308.55 Ltd.Benxi Iron and Steel (Group) Energy and power testing and Industrial Development Co. Ltd. inspection raw materials and 132580926.30 11699668.02 spare parts Benxi Iron and Steel (Group) Information Automation Co. Ltd. Energy and power 488917.53 943413.65 Benxi Iron and Steel (Group) Electromechanical Installation Energy and power 272525.36 Engineering Co. Ltd.Benxi Iron and Steel (Group) Construction Advanced Energy and power 527.01 Decoration Co. Ltd.Benxi Steel (Group) Auxiliary materials energy and power 11159087.54 6966540.85 284Bengang Steel Plates Co. Ltd. Annual Report 2024 Benxi Iron and Steel (Group) Mining Yanjia Valley Limestone Energy and power testing and inspection 2052313.28 Mine Co. Ltd.Benxi Iron and Steel (Group) Road and Bridge Construction Testing and inspection 4695.28 Engineering Co. Ltd.Benxi Iron & Steel (Group) Energy and power raw materials Metallurgical Slag Co. Ltd. and spare parts raw materials and 94191190.98 spare parts Bengang Gaoyuan Industrial Energy and power testing and Development Co. Ltd. inspection 11039.01 Benxi Xihu Metallurgical Furnace Material Co. Ltd. Energy and power 236195.71 51845.77 Benxi Weir Surfacing Manufacturing Co. Ltd. Energy and power 50861.74 39029.56 Benxi New Industrial Development Co. Ltd. Energy and power 224031.67 51788.65 Dalian Brollo Steel Pipe Co. Ltd. Steel and steel products 10870375.21 16114335.27 DeLin Land Port Supply Chain Warehousing income steel and Services Co. Ltd. steel products 3147395031.01 816321523.81 Guangzhou Angang Steel Processing Co. Ltd. Steel and steel products 15100206.27 12510453.69 Liaoning Hengtong Metallurgical Equipment Manufacturing Co. Scrap steel waste materials raw materials 29992686.48 174388966.12 Ltd.Pangang Group Jiangyou Great Wall Special Steel Co. Ltd. Steel and steel products 18133959.69 14852323.92 Tianjin Angang Steel Processing Warehousing income steel and & Distribution Co. Ltd. steel products 37200677.54 1415942.58 Changchun Ansteel Jiefang Steel Processing & Distribution Co. Steel and steel products 4693047.99 Ltd.China Ordnance Industry Materials Group Co. Ltd. Steel and steel products 139809.64 Liaoning Hengtai Heavy Energy and power testing and Machinery Co. Ltd. inspection 12194.90 Liaoning Slag Micropowder Co.Ltd. Testing and inspection 12120.75 Liaoning Yitong Machinery Energy and power testing and Manufacturing Co. Ltd. inspection 9874.53 Tianjin Angang International Northern Trade Co. Ltd. Steel and steel products 249512844.48 Yantai Ansteel International Trade Co. Ltd. Steel and steel products 509560.40 Changchun FAW Angang Steel Processing & Distribution Co. Steel and steel products 1969914.22 Ltd. 2. Lease information of related parties Company as lessor： Type of leasing Lease income of Lease income Lessee assets current period of previous period Factory buildings Benxi Steel & Iron (Group) Steel & Iron and ancillary 108980.00 217960.00 Process and Logistics Co. Ltd.equipment 285Bengang Steel Plates Co. Ltd. Annual Report 2024 Type of leasing Lease income of Lease income Lessee assets current period of previous period Factory buildings Benxi Steel (Group) Machinery and ancillary 670802.00 - Manufacturing Co. Ltd.equipment Factory buildings Bengang Group International Economic and ancillary 1957007.77 - and Trade Co. Ltd.equipment 286Bengang Steel Plates Co. Ltd. Annual Report 2024 Company as the lessee： Current period Previous period amount Rental Rental costs for costs for short- short- Variable term Variable term lease leases lease leases payments Leased Asset and payments Interest Increase and not Increase Lessor Name Type leases of not included Interest low- in the Rent paid expense in right- leases of included Rent paid expense on in right-on lease of-use low- in the of-use value measureme liabilities assets value measurem lease liabilities assets assets nt of lease assets ent of with liabilities with lease simplifie simplifie liabilities d d treatment treatment Benxi Steel Land use right & Iron 7669068.17 (Group) Steel square meter 5527754 3767781& Iron 4.12 9.06 55277544.12 39000108.00 Land use right Process and 42920.00 Logistics Co.square meter Ltd.Benxi Steel 2300 Hot 1609816 6968900.& Iron 1.04 84 16098161.05 7740688.68 rolling product (Group) Steel 287Bengang Steel Plates Co. Ltd. Annual Report 2024 Current period Previous period amount Rental Rental costs for costs for short- short- Variable term Variable term lease leases lease leases payments Leased Asset and payments Interest Increase and not Increase Lessor Name Type leases of not included Rent paid expense in right- leases of included Interest in right- low- in the on lease of-use low- in the Rent paid expense on value measureme liabilities assets value measurem lease liabilities of-use assets assets nt of lease assets ent of with liabilities with lease simplifie simplifie liabilities d d treatment treatment & Iron line related Process and real estate Logistics Co.Ltd.Benxi 1780 Hot Beiying Steel rolling product 1435163 5367055.& Iron 7.72 84 14351637.72 5961443.40 line related (Group) Co.real estate Ltd.Bengang Land use right 9945423.1757731. Group Co. 728282.30 12 16 9945423.12 2449918.80 Ltd. square meter 288Bengang Steel Plates Co. Ltd. Annual Report 2024 Current period Previous period amount Rental Rental costs for costs for short- short- Variable term Variable term lease leases lease leases payments Leased Asset and payments Interest Increase and not Increase Lessor Name Type leases of not included Interest low- in the Rent paid expense in right- leases of included in right- on lease of-use low- in the Rent paid expense on value measureme liabilities assets value measurem lease liabilities of-use assets assets nt of lease assets ent of with liabilities with lease simplifie simplifie liabilities d d treatment treatment Angang Group Energy- machinery and 7418960. 6474538. 255128Saving 00 06 489.65 equipment Technology Services Co.Ltd. 289Bengang Steel Plates Co. Ltd. Annual Report 2024 3. Remuneration of key management personnel Units: in 10 thousand Items Current period Previous period Remuneration of key management 402.56427.09 personnel (6) Receivables and payables of the related parties 1. Receivables of the company 2024/12/312023/12/31 Items Name Gross carrying Provision for Gross carrying Provision for amount bad debts amount bad debts Angang Steel Processing & Accounts Distribution 17280685.82 172806.86 27279295.84 272792.96 receivable (Dalian) Co. Ltd.Angang Steel Accounts Distribution 343341.923433.42 receivable (Wuhan) Co.Ltd.Bengang Group Accounts International 253981286.942539812.87854482902.2829419309.19 receivable Economic and Trade Co.Ltd.Benxi Accounts Northern Iron 8268156.1882681.5652161339.98539226.50 receivable Industry Co.Ltd.Accounts Benxi 1475226.1114752.26 receivable Northern 290Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/312023/12/31 Items Name Gross carrying Provision for Gross carrying Provision for amount bad debts amount bad debts Rolling Co.Ltd.Benxi Beiying Accounts Iron and Steel 143872.001438.72814535.99 receivable (Group) Co.Ltd.Benxi Dongfeng Accounts Lake Steel 454258.024542.581129130.3311291.30 receivable Resource Utilization Co. Ltd.Benxi Iron and Accounts Steel (Group) 1389266.6439345.195954675.2910700.06 receivable Construction Co. Ltd.Benxi Iron and Steel (Group) Accounts Mining 607729.2363193.36662998.2411004.96 receivable Construction Engineering Co. Ltd.Benxi Iron and Steel (Group) Mining Accounts Mineral 88983.85 8898.39 88983.85 889.84 receivable Resources Development Co. Ltd.Accounts Benxi Iron and 16557.90165.58303609.003036.09 receivable Steel (Group) 291Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/312023/12/31 Items Name Gross carrying Provision for Gross carrying Provision for amount bad debts amount bad debts Mining Liaoyang Jiajiaobao Iron Mine Co. Ltd.Benxi Iron and Steel (Group) Accounts Mining 921521.3967911.031602237.3916022.37 receivable Liaoyang Ma'erling Pellet Co. Ltd.Benxi Iron and Steel (Group) Accounts Mining Yanjia 13714.00137.14 receivable Valley Limestone Mine Co. Ltd.Benxi Iron and Accounts Steel (Group) 2184958.7421849.5943742238.95437422.39 receivable Mining Co.Ltd.Benxi Iron and Steel (Group) Accounts Thermal 6744686.82246075.3916191269.77142065.08 receivable Power Development Co. Ltd.Benxi Steel & Accounts Iron (Group) 1903696.4139634.2011642752.56256914.89 receivable Steel & Iron Process and 292Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/312023/12/31 Items Name Gross carrying Provision for Gross carrying Provision for amount bad debts amount bad debts Logistics Co.Ltd.Benxi Iron and Steel (Group) Accounts Industrial 6964699.57 69647.00 20496130.86 2727.99 receivable Development Co. Ltd.Accounts Benxi Steel 1700740.5817007.4119025699.80681571.55 receivable (Group) Benxi Xihu Metallurgical Accounts Furnace 49833.00 498.33 13216.40 132.16 receivable Material Co.Ltd.Benxi Weir Accounts Surfacing 190148.598558.50191720.2216994.63 receivable Manufacturing Co. Ltd.Liaoning Hengtong Accounts Metallurgical 54010.30540.10162404481.011637032.46 receivable Equipment Manufacturing Co. Ltd.Liaoning Slag Accounts Micropowder 12848.00 128.48 12848.00 128.48 receivable Co. Ltd.Angang Steel Accounts Company 519491.94 5194.92 receivable Limited 293Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/312023/12/31 Items Name Gross carrying Provision for Gross carrying Provision for amount bad debts amount bad debts Angang Group Accounts Engineering 23232.88232.3330509.40305.09 receivable Technology Co. Ltd.Angang Accounts Construction 4154.1641.54 receivable Group Co.Ltd.Angang Accounts Energy 283.532.84 receivable Technology Co. Ltd.Bengang Accounts Group Co. 1246.09 12.46 receivable Ltd.Benxi Iron and Steel (Group) Accounts Real Estate 269832.53 244698.20 receivable Development Co. Ltd.Benxi Iron and Steel (Group) Accounts Information 561.58 5.62 14700.00 147.00 receivable Automation Co. Ltd.Benxi New Accounts Industrial 49497.4855.28 receivable Development Co. Ltd.Accounts Pangang 5864196.3958641.96 receivable Group 294Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/312023/12/31 Items Name Gross carrying Provision for Gross carrying Provision for amount bad debts amount bad debts Jiangyou Great Wall Special Steel Co. Ltd.Bengang Stainless Steel Other Cold Rolling 1030000.00 10300.00 receivables Dandong Co.Ltd.Bengang Group Other International 6617.526617.52 receivables Economic and Trade Co.Ltd.Benxi Iron and Other Steel (Group) 250679.61250679.61250679.61250679.61 receivables Construction Co. Ltd.Other Benxi Steel 2674500.00157740.007413860.804561714.36 receivables (Group) Liaoning Lide Other Internet of 1881016.0018810.16 receivables Things Co.Ltd.Angang Steel Other Company 95781.27 50581.83 95781.27 46061.89 receivables Limited Other Angang Group 13906.00139.066706.0067.06 receivables Co. Ltd.Other Anzi (Tianjin) 8064427.9880644.28 receivables Financial 295Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/312023/12/31 Items Name Gross carrying Provision for Gross carrying Provision for amount bad debts amount bad debts Leasing Co.Ltd.Bengang Other Group Co. 7305.59 73.06 receivables Ltd.Benxi Dongfeng Other Lake Steel 3478250.0723340.75 receivables Resource Utilization Co. Ltd.Benxi Iron and Steel (Group) Other Machinery 1061981.67 106198.17 receivables Manufacturing Co. Ltd.Benxi Iron and Steel (Group) Other Industrial 431639.87 43163.99 receivables Development Co. Ltd.Benxi New Other Industrial 2280942.732280942.73 receivables Development Co. Ltd.Liaoning Other Hengtai Heavy 3545583.4035455.83 receivables Machinery Co. Ltd.Angang Steel Prepayment 663.59 Processing & 296Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/312023/12/31 Items Name Gross carrying Provision for Gross carrying Provision for amount bad debts amount bad debts Distribution (Changchun) Co. Ltd.Benxi Beiying Iron and Steel Prepayment 7880500.42 3118976.34 (Group) Co.Ltd.Benxi Iron and Steel (Group) Prepayment Machinery 318579.31 Manufacturing Co. Ltd.Benxi Steel & Iron (Group) Steel & Iron Prepayment 3162173.15 3162173.15 Process and Logistics Co.Ltd.Benxi New Industrial Prepayment 7196737.50 8122937.94 Development Co. Ltd.Angang Steel Prepayment Company 484808.79 882482.46 Limited Angang Group Engineering Prepayment 6774166.05 Technology Co. Ltd.Angang Group Prepayment 0.01 0.01 International 297Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/312023/12/31 Items Name Gross carrying Provision for Gross carrying Provision for amount bad debts amount bad debts Economic & Trade Co.Ltd.Bengang Group International Prepayment 10176164.50 Economic and Trade Co.Ltd.Benxi Beiying Iron and Steel Prepayment Group Import 1119904.00 and Export Co. Ltd.Benxi Iron and Steel (Group) Prepayment Information 575313.17 1075365.83 Automation Co. Ltd.Bengang Other non- Gaoyuan current Industrial 542400.00 542400.00 assets Development Co. Ltd.Benxi Iron and Other non- Steel (Group) current 19936615.33 22094076.34 Construction assets Co. Ltd.Other non- Benxi Iron and current Steel (Group) 3102019.08 3155429.08 assets Mining 298Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/312023/12/31 Items Name Gross carrying Provision for Gross carrying Provision for amount bad debts amount bad debts Construction Engineering Co. Ltd.Benxi Steel & Iron (Group) Other non- Steel & Iron current 12686042.92 22915336.04 Process and assets Logistics Co.Ltd.Benxi Iron and Other non- Steel (Group) current Industrial 562392.14 833139.38 assets Development Co. Ltd.Liaoning Other non- Hengtai Heavy current 5895416.00 263473.40 Machinery assets Co. Ltd.Other non- Angang Steel current Company 7305.45 assets Limited Angang Group Other non- Engineering current 1968632.21 14517451.17 Technology assets Co. Ltd.Angang Heavy Machinery Other non- Design & current 3506580.00 Research assets Institute Co.Ltd. 299Bengang Steel Plates Co. Ltd. Annual Report 2024 2024/12/312023/12/31 Items Name Gross carrying Provision for Gross carrying Provision for amount bad debts amount bad debts Benxi Iron and Other non- Steel (Group) current Machinery 4176.00 assets Manufacturing Co. Ltd.Benxi Iron and Other non- Steel (Group) current Information 7692252.35 16042420.95 assets Automation Co. Ltd. 2. Payables of the company Items Related party 2024/12/31 2023/12/31 Contract Angang (Hangzhou) Automotive Materials 644589.93299035.59 liabilities Technology Co. Ltd.Contract Angang Steel Processing & Distribution 1018.12 liabilities (Dalian) Co. Ltd.Contract Angang Steel Processing & Distribution 2826567.075370495.95 liabilities (Changchun) Co. Ltd.Contract Angang Steel Distribution (Hefei) Co. Ltd. 3099204.80 3050349.68 liabilities Contract Angang Steel Distribution (Wuhan) Co. Ltd. 731023.72 liabilities Contract Angang Group International Economic & 649732.04 liabilities Trade Co. Ltd.Contract Ansteel Shenyang Steel Processing & 87869.94 liabilities Distribution Co. Ltd.Contract Benxi Steel Group Dalian Refractories Co. 4203125.16 liabilities Ltd. 300Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Related party 2024/12/31 2023/12/31 Contract Benxi Beiying Iron and Steel (Group) Co. 6329389.091718334.16 liabilities Ltd.Contract Benxi Dongfeng Lake Steel Resource 4881014.652479009.03 liabilities Utilization Co. Ltd.Contract Benxi Iron and Steel (Group) Machinery 5552.80177026.55 liabilities Manufacturing Co. Ltd.Contract Benxi Iron and Steel (Group) Construction 39135.8239135.82 liabilities Co. Ltd.Contract Benxi Iron and Steel (Group) Mining Co. 510246.414931815.33 liabilities Ltd.Contract Benxi Iron and Steel (Group) Thermal Power 8620006.554487918.73 liabilities Development Co. Ltd.Contract Benxi Iron and Steel (Group) Industrial 10393122.801587538.32 liabilities Development Co. Ltd.Contract Benxi Xihu Metallurgical Furnace Material 20000.0020000.00 liabilities Co. Ltd.Contract Delin Land Port Supply Chain Services Co. 305864435.81196434644.84 liabilities Ltd.Contract Guangzhou Angang Steel Processing Co. 500000.001067.17 liabilities Ltd.Contract Liaoning Hengtong Metallurgical Equipment 3278592.933588934.12 liabilities Manufacturing Co. Ltd.Contract Liaoning Metallurgical Vocational Technical 0.010.01 liabilities College Contract Tianjin Angang Steel Processing & 4824582.323064031.23 liabilities Distribution Co. Ltd.Contract Changchun Ansteel Jiefang Steel Processing 8200175.36 liabilities & Distribution Co. Ltd.Contract Angang Mining Machinery Manufacturing 354001.32 liabilities Co. Ltd.Contract Angang Steel Company Limited 675535.16 130744.73 liabilities 301Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Related party 2024/12/31 2023/12/31 Contract Angang Chemical Technology Co. Ltd. 10758548.27 6485543.83 liabilities Contract Angang Green Resources Technology Co. 477418.261484311.95 liabilities Ltd.Contract Angang Energy Technology Co. Ltd. 0.02 283.55 liabilities Contract Angang Heavy Machinery Design & 23079.79 liabilities Research Institute Co. Ltd.Contract Benxi Iron & Steel (Group) Metallurgical 0.02 liabilities Slag Co. Ltd.Contract Dalian Brollo Steel Tubes Co. Ltd. 3191247.16 3319972.56 liabilities Contract Pangang Group Jiangyou Great Wall Special 1779438.17 liabilities Steel Co. Ltd.Contract Changchun FAW Angang Steel Processing & 589358.32 liabilities Distribution Co. Ltd.Accounts Angang Mining Automotive Transportation 324680.50 payable Co. Ltd.Accounts Angang Steel Processing & Distribution 108462.46208377.96 payable (Changchun) Co. Ltd.Accounts Bengang Gaoyuan Industrial Development 3969044.081125249.71 payable Co. Ltd.Accounts Benxi Steel Group Dalian Refractories Co. 1487446.42 payable Ltd.Accounts Bengang Group International Economic and 50692605.6747218526.77 payable Trade Co. Ltd.Accounts Bengang Group Co. Ltd. 4688239.05 4688315.28 payable Accounts Benxi Aiko Hydraulic Sealing Co. Ltd. 2778115.83 1646773.75 payable Accounts Benxi Northern Iron Industry Co. Ltd. 73671.74 4486925.32 payable 302Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Related party 2024/12/31 2023/12/31 Accounts Benxi Beiying Iron and Steel (Group) Co. 79183767.61152926015.01 payable Ltd.Accounts Benxi Dongfeng Lake Steel Resource 2794117.3011255094.10 payable Utilization Co. Ltd.Accounts Benxi Iron and Steel (Group) Real Estate 89735.06130815.00 payable Development Co. Ltd.Accounts Benxi Iron and Steel (Group) International 46335396.7242667716.38 payable Trade Tengda Co. Ltd.Accounts Benxi Iron and Steel (Group) Machinery 10659752.692438119.19 payable Manufacturing Co. Ltd.Accounts Benxi Iron and Steel (Group) Construction 264705.62264705.62 payable Advanced Decoration Co. Ltd.Accounts Benxi Iron and Steel (Group) Construction 29543424.3735954925.98 payable Co. Ltd.Accounts Benxi Iron and Steel (Group) Mining 12083876.397069202.17 payable Construction Engineering Co. Ltd.Accounts Benxi Iron and Steel (Group) Mining 10282360.9955297876.79 payable Liaoyang Ma'erling Pellet Co. Ltd.Accounts Benxi Iron and Steel (Group) Mining Co. 59008517.3971864074.04 payable Ltd.Accounts Benxi Iron and Steel (Group) Thermal Power 12362.40281092.78 payable Development Co. Ltd.Accounts Benxi Steel & Iron (Group) Steel & Iron 92630122.4647480851.11 payable Process and Logistics Co. Ltd.Accounts Benxi Iron and Steel (Group) Industrial 53022441.3699026848.37 payable Development Co. Ltd.Accounts Benxi Iron and Steel (Group) Information 23459353.6918762233.66 payable Automation Co. Ltd.Accounts Benxi Steel (Group) 28808379.76 32174626.26 payable Accounts Benxi Xihu Metallurgical Furnace Material 17171380.5225620902.35 payable Co. Ltd. 303Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Related party 2024/12/31 2023/12/31 Accounts Benxi Weir Surfacing Manufacturing Co. 234112.13234112.13 payable Ltd.Accounts Benxi New Industrial Development Co. Ltd. 38700.00 3357637.09 payable Accounts DeLin Land Port Supply Chain Services Co. 7713.3058351.28 payable Ltd.Accounts Liaoning Hengtai Heavy Machinery Co. Ltd. 13479975.49 18098769.50 payable Accounts Liaoning Hengtong Metallurgical Equipment 7166704.731409071.37 payable Manufacturing Co. Ltd.Accounts Liaoning Lide Internet of Things Co. Ltd. 7230457.06 4170770.16 payable Accounts Liaoning Metallurgical Vocational Technical 517768.0048048.00 payable College Accounts Liaoning Yitong Machinery Manufacturing 4599719.452127118.28 payable Co. Ltd.Accounts Tianjin Bengang Sheet Metal Processing & 487.997.25 payable Distribution Co. Ltd.Accounts Angang Electrical Co. Ltd. 63861.90 170418.08 payable Accounts Angang Scrap Resources (Anshan) Co. Ltd. 90856997.04 66774511.99 payable Accounts Angang Steel Rope Co. Ltd. 263044.11 payable Accounts Angang Steel Company Limited 417943.09 145476.64 payable Accounts Angang Group Engineering Technology Co. 85440.00170708.00 payable Ltd.Accounts Angang Group International Economic & 193806.4238512770.27 payable Trade Co. Ltd.Accounts Angang Group Mining Gongchangling Co. 774734.406637769.40 payable Ltd. 304Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Related party 2024/12/31 2023/12/31 Accounts Angang Energy Technology Co. Ltd. 132150.38 payable Angang Industrial Group (Anshan) Accounts Equipment Operation & Maintenance Co. 3063464.44 payable Ltd.Accounts Angang Industrial Group Metallurgical 3048409.402198235.32 payable Machinery Co. Ltd.Accounts Angang Heavy Machinery Co. Ltd. 2480080.39 864614.53 payable Accounts Anshan Iron & Steel Metallurgical Furnace 2641730.705954131.61 payable Material Technology Co. Ltd.Accounts Bengang Stainless Steel Cold Rolling 42982.27 payable Dandong Co. Ltd.Accounts Bengang Electrical Co. Ltd. 2692262.89 2903896.45 payable Accounts Benxi Beiying Iron and Steel Group Import 225141.59 payable and Export Co. Ltd.Accounts Benxi Iron & Steel (Group) Metallurgical 250593.53 payable Slag Co. Ltd.Accounts DeLin Industrial Products Co. Ltd. 11409283.88 9685683.68 payable Accounts Shanxi Materials International Energy Co. 91859.97 payable Ltd.Accounts Dalian Brollo Steel Pipe Co. Ltd. 1007742.98 payable Accounts Bengang Group Co. Ltd. 45054305.70 payable Other Bengang Gaoyuan Industrial Development accounts 5005617.56 3058404.54 Co. Ltd.payable Other Benxi Steel Group Dalian Refractories Co.accounts 20000.00 Ltd.payable 305Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Related party 2024/12/31 2023/12/31 Other Bengang Group International Economic and accounts 66120363.96 65932990.42 Trade Co. Ltd.payable Other accounts Bengang Group Co. Ltd. 219843255.77 23223375.93 payable Other accounts Benxi Aiko Hydraulic Sealing Co. Ltd. 58590.00 142790.82 payable Other Benxi Beiying Iron and Steel (Group) Co.accounts 7766352.17 40103767.22 Ltd.payable Other Benxi Dongfeng Lake Steel Resource accounts 210000.00 210000.00 Utilization Co. Ltd.payable Other Benxi Iron and Steel (Group) Engineering accounts 1488917.43 1999087.29 Construction Supervision Co. Ltd.payable Other Benxi Iron and Steel (Group) Machinery accounts 3792085.01 Manufacturing Co. Ltd.payable Other Benxi Iron and Steel (Group) Inspection and accounts 735280.00 75000.00 Testing Co. Ltd.payable Other Benxi Iron and Steel (Group) Construction accounts 123738.55 265274.55 Advanced Decoration Co. Ltd.payable Other Benxi Iron and Steel (Group) Construction accounts 217077997.48 188471867.14 Co. Ltd.payable Other Benxi Iron and Steel (Group) Mining accounts 7550015.30 37398204.19 Construction Engineering Co. Ltd.payable 306Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Related party 2024/12/31 2023/12/31 Other Benxi Iron and Steel (Group) Thermal Power accounts 697337.92 2070400.72 Development Co. Ltd.payable Other Benxi Steel & Iron (Group) Steel & Iron accounts 724514695.24 293195637.86 Process and Logistics Co. Ltd.payable Other Benxi Iron and Steel (Group) Industrial accounts 1412218.05 4078753.90 Development Co. Ltd.payable Other Benxi Iron and Steel (Group) Information accounts 108472109.63 56689600.00 Automation Co. Ltd.payable Other accounts Benxi Steel (Group) 52720523.82 13372608.70 payable Other Benxi Xihu Metallurgical Furnace Material accounts 100000.00 200000.00 Co. Ltd.payable Other accounts Benxi New Industrial Development Co. Ltd. 13997378.10 15131176.03 payable Other accounts Liaoning Hengtai Heavy Machinery Co. Ltd. 5024204.94 6941075.21 payable Other accounts Liaoning Hengyi Steel Trade Co. Ltd. 11758998.02 11758998.02 payable Other Liaoning Metallurgical Vocational Technical accounts 353630.00 707260.00 College payable Other Liaoning Yitong Machinery Manufacturing accounts 330463.37 30396.50 Co. Ltd.payable 307Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Related party 2024/12/31 2023/12/31 Other Angang (Liaoning) Materials Technology accounts 300000.00 390000.00 Co. Ltd.payable Other accounts Angang Scrap Resources (Anshan) Co. Ltd. 500000.00 500000.00 payable Other Angang Group Engineering Technology Co.accounts 114249580.71 183423813.04 Ltd.payable Other accounts Angang Group Co. Ltd. 1635.00 payable Other accounts Angang Group Automation Co. Ltd. 7332129.00 1283900.00 payable Other accounts Angang Construction Group Co. Ltd. 3319522.94 6676229.55 payable Other accounts Angang Metal Structure Co. Ltd. 10000.00 10000.00 payable Other Angang Heavy Machinery Design & accounts 826121.54 50000.00 Research Institute Co. Ltd.payable Other accounts Angang Heavy Machinery Co. Ltd. 1040012.56 409930.10 payable Other Anshan Angang International Travel Agency accounts 245460.00 Co. Ltd.payable Other Anshan Iron & Steel Metallurgical Furnace accounts 50000.00 50000.00 Material Technology Co. Ltd.payable 308Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Related party 2024/12/31 2023/12/31 Other accounts Bengang Electrical Co. Ltd. 776394.34 5768826.24 payable Other Benxi Iron and Steel (Group) Road and accounts 318.66 Bridge Construction Engineering Co. Ltd.payable Other accounts Dalian Brollo Steel Pipe Co. Ltd. 20000.00 20000.00 payable Other accounts DeLin Industrial Products Co. Ltd. 943215.92 payable Other Liaoning Hengtong Metallurgical Equipment accounts 20000.00 Manufacturing Co. Ltd.payable Other accounts Liaoning Metallurgical Technician College 2229204.00 payable Other Pangang Group Engineering Technology accounts 1001991.58 Consulting Co. Ltd.payable (7) Centralized Fund Management 1. The key elements of the centralized capital management arrangements in which the Company participates and operates are as follows: In December 2021 after negotiation with Anshan Iron & Steel Group Finance CompanyLimited (hereinafter referred to as Anshan Iron & Steel Finance Company) the “FinancialServices Agreement (Years 2022-2024)” was entered into in order to agree on the terms of the relevant financial business and the upper limit of the amount of the relevant transactions between the Company and its subsidiaries and Anshan Iron & Steel Finance Company for the years 2022 2023 and 2024. The agreement stipulates that in the next twelve months the maximum daily deposit balance of the Company and its holding subsidiaries with Anshan Iron & Steel Finance Company will be RMB4.5 billion the maximum credit limit of loans bills 309Bengang Steel Plates Co. Ltd. Annual Report 2024 and other forms of credit will be RMB5.0 billion and the maximum entrusted loan to be provided by Anshan Iron & Steel Finance Company to the Company will be RMB2.0 billion.In December 2024 after negotiation with Anshan Iron & Steel Group Finance CompanyLimited (hereinafter referred to as Anshan Iron & Steel Finance Company) the “FinancialServices Agreement (Years 2025-2027)” was entered into in order to agree on the terms of the relevant financial business and the upper limit of the amount of the relevant transactions between the Company and its subsidiaries and Anshan Iron & Steel Finance Company for the years 2025 2026 and 2027. The agreement stipulates that the maximum daily balance of funds deposited by Bengang Plates in Angang Financial Company for settlement shall not exceed RMB 4.5 billion each year and the interest generated by the deposits shall not exceed RMB 100 million per year; the amount of loans bills and other forms of credit provided by Angang Financial Company to Bengang Plates shall not exceed RMB 5 billion each year and the loan interest shall not exceed RMB 250 million per year; the amount of entrusted loans provided by Angang Financial Company to Bengang Plate Group shall not exceed RMB 2 billion each year and the entrusted loan interest shall not exceed RMB 100 million per year. 2. Funds pooled by the Company to the Group Funds deposited directly into finance companies by the Company without being pooled into the accounts of the Group's parent company 2024/12/312023/12/31 Items Gross carrying Provision for Gross carrying Provision for amount bad debts amount bad debts Cash at bank and on 1227198770.48406288003.73 hand Total 1227198770.48 406288003.73 include: funds restricted due to centralized management of funds 14. Commitments and Contingencies （1） Significant Commitments 1. Lease contracts in progress or to be performed and their financial impacts 310Bengang Steel Plates Co. Ltd. Annual Report 2024 (1) According to the Land Use Rights Lease Agreement signed between the Company and Benxi Steel (Group) Co. Ltd. on April 7 1997 December 30 2005 and subsequent supplementary agreements the Company leases land from Bengang Group at a rate of 0.594 yuan per square meter per month. The total leased land area is 7669068.17 square meters with an annual rent of 54.66 million yuan. (2) On August 14 2019 the Company signed the Building Lease Agreements with Benxi Steel (Group) Co. Ltd. and Benxi Beiying Steel (Group) Co. Ltd. leasing the buildings and auxiliary facilities occupied by the 2300 hot rolling mill production line and the 1780 hot rolling mill production line respectively. The lease term extends until December 31 2038.The lease fee is determined based on the depreciation of the original building value and national surtaxes plus a reasonable profit margin through negotiation. The estimated maximum annual rent shall not exceed 20 million yuan for the 2300 hot rolling mill and 18 million yuan for the 1780 hot rolling mill. The rent is settled and paid on a monthly basis.This related-party transaction has been reviewed and approved by the Company’s 8th Board of Directors at its 4th meeting. (3) On July 15 2019 the Company signed Land Lease Agreements with Benxi Steel (Group) Co. Ltd. and Bengang Group leasing a total of eight plots of land from both companies.The leased land areas are 42920.00 square meters and 728282.30 square meters respectively. The lease term is 20 years with a rental price of 1.138 yuan per square meter per month. After the agreement takes effect every five years an evaluation will be conducted based on national laws and policies and the pricing principles stipulated in Article 2 of the agreement to determine whether the rent needs to be adjusted. This related-party transaction has been reviewed and approved by the Company’s 8th Board of Directors at its 3rd meeting. (4) As of December 31 2024 the amount of irrevocable letters of credit yet to be fulfilled is 1.01 billion yuan. （2） Contingencies As of December 31 2024 the Company has no significant contingent matters that require disclosure. 15. Subsequent events On March 20 2025 Bengang Steel Plates Co. Ltd. issued the "Progress Announcement on Major Asset Exchange and Related-Party Transaction." The Company plans to conduct an asset exchange with its controlling shareholder Benxi Steel (Group) Co. Ltd. The proposed acquired asset is 100% equity interest in Benxi Steel & Iron (Group) Mining Co. Ltd. The proposed disposed assets include all assets and liabilities of the listed company except for the retained assets and liabilities. Any difference in value between the acquired and disposed assets will be 311Bengang Steel Plates Co. Ltd. Annual Report 2024 settled in cash by one party to the other. At present the specific scope of the transaction assets transaction price and other key elements have not been finalized. No agreement has been signed between the parties and the transaction plan requires further evaluation discussion and negotiation. Additionally the transaction must undergo necessary decision-making and approval procedures in accordance with relevant laws regulations and the Company's Articles of Association. Therefore there remains significant uncertainty regarding this transaction. 16. Other significant events （1） Correction of previous accounting errors 1. Retrospective Restatement Method No prior period accounting errors were corrected using the retrospective restatement method during this reporting period. 2. Prospective Application Method No prior period accounting errors were corrected using the prospective application method during this reporting period. 312Bengang Steel Plates Co. Ltd. Annual Report 2024 （2） Significant Debt Restructuring Original Fair Value Recognized Increase in Share Increase in Percentage Debt Carrying Contingent Determination Gain/Loss on Capital Due to Investment Due of Debtor's Items Restructuring Amount of Payable/Rece Method and Debt Debt-to-Equity to Debt-to-Equity Total Equity Method Restructured ivable Basis in Debt Restructuring Conversion Conversion (%) Debt Restructuring Settlement of debt with cash Accounts lower than the 18965884.21 6496818.35 Payable carrying amount of the debt Total 18965884.21 6496818.35 313Bengang Steel Plates Co. Ltd. Annual Report 2024 （3） Segment information Due to the fact that the Company's main product is steel with other products accounting for a smaller proportion of sales and the primary production base being located in the Liaoning region it is not applicable to disclose segment reporting. 17. Notes to the financial statements of parent company 1. Accounts receivable (1) Accounts receivable disclosed by aging Items 2014/12/31 2013/12/31 Within 1 year (inclusive) 775949268.73 719865861.39 1-2 years (inclusive) 5786445.58 561695759.42 2-3 years (inclusive) 126254788.19 647190.77 3-4 years (inclusive) 557413.41 845982.97 4-5 years (inclusive) 748799.87 503056.19 Over 5 years 97491074.53 98702147.96 subtotal 1006787790.31 1382259998.70 less：bad debt 107374488.69 138933196.14 Total: 899413301.62 1243326802.56 314Bengang Steel Plates Co. Ltd. Annual Report 2024 (2) Accounts receivable disclosed by method of bad debt provision 2024/12/312023/12/31 Carrying amount Provision for bad debts Carrying amount Provision for bad debts Items Provision Provision Percentage Book value Percentage Book value Amount Amount Percentage Amount Amount Percentage (%)(%) (%)(%) Provision assessed 48196244.68 4.79 48196244.68 100.00 48196244.68 3.49 48196244.68 100.00 individually Provision assessed by grouping 958591545.63 95.21 59178244.01 6.17 899413301.62 1334063754.02 96.51 90736951.46 6.80 1243326802.56 credit risk characteristics Including: By Aging 313614474.7331.1559178244.0118.87254436230.721021248997.5173.8890736951.468.88930512046.05 portfolio By Risk 644977070.9064.06644977070.90312814756.5122.63312814756.51 portfolio Total 1006787790.31 100.00 107374488.69 899413301.62 1382259998.70 100.00 138933196.14 1243326802.56 315Bengang Steel Plates Co. Ltd. Annual Report 2024 Significant Provision for bad debts assessed individually： 2024123120231231 Bad Item Accounts Provision for debts Basis for Accounts Provision for receivable bad debts ratio provision receivable bad debts （%） Benxi Nanfen Xinhe Ceased Metallurgical 48196244.68 48196244.68 100.00 48196244.68 48196244.68 Co. Ltd. production Total 48196244.68 48196244.68 48196244.68 48196244.68 Accounts receivable tested for impairment by portfolio: Portfolio tested by aging 20241231 Items Carrying amount Provision for bad debts Bad debts ratio (%) Within 1 year 228667583.68 2286675.85 1.00 1-2 years 5786445.58 578644.56 10.00 2-3 years 28559402.34 5711880.47 20.00 3-4 years 557413.41 557413.41 100.00 4-5 years 748799.87 748799.87 100.00 Over 5 years 49294829.85 49294829.85 100.00 Total 313614474.73 59178244.01 (3) Provision reversal or recovery of bad debts of current period. Change in the Current Period Reversal Items 2023/12/31 Write-off or Other 2024/12/31 Provision or Cancellation Changes Recovery Provision for accounts 138933196.14 -31175442.37 383265.08 107374488.69 receivable bad debts Total 138933196.14 -31175442.37 383265.08 107374488.69 316Bengang Steel Plates Co. Ltd. Annual Report 2024 (4) Accounts Receivable Written Off in the Current Period Item Write-off Amount Accounts Receivable Written Off 383265.08 (5) Top five debtors based on accounts receivable and contract assets at the year- end Accounts Percentage of Provision for Accounts Contract total doubtful debts Receivable Asset Receivable and Accounts for Accounts Company Ending Ending Contract Asset Receivable Receivable Balance Balance Ending and Contract and Contract Balance Asset (%) Asset Ending Balance Bengang Puxiang Cool Rolling Steel 396765334.76 396765334.76 39.41 Sheet Co.Ltd.Benxi Bengang Steel Sales 138259745.78 138259745.78 13.73 Co. Ltd.Liaoning North Coal Chemical Industry 56946219.86 56946219.86 5.66 569462.20 (Group) Co.Ltd.North Hengda Logistics Co.Ltd. 54202395.22 54202395.22 5.38 Benxi Nanfen Xinhe Metallurgical 48196244.68 48196244.68 4.79 48196244.68 Co. Ltd.Total 694369940.30 694369940.30 68.97 48765706.88 2. Other receivables Items 2024/12/31 2023/12/31 Interest receivable Dividends receivable 224898383.95 260000000.00 Other receivables 174911279.65 344535173.18 Total 399809663.60 604535173.18 317Bengang Steel Plates Co. Ltd. Annual Report 2024 1. Dividends receivable （1）Breakdown of Dividends receivable Items（or company） 2024/12/31 2023/12/31 Bengang Puxiang Cool Rolling Steel 163898383.95 Sheet Co. Ltd.Changchun Bengang Steel Sales Co. 3000000.0043000000.00 Ltd.Shenyang Bengang Metallurgical 30000000.00 Science and Technology Co. Ltd.Tianjin Bengang Steel & Iron Trading 47000000.00 Co. Ltd.Shanghai Bengang Metallurgy Science 15000000.00 and Technology Co. Ltd.Yantai Bengang Steel & Iron Sales 25000000.00 Co. Ltd.Guangzhou Bengang Steel & Iron 58000000.00100000000.00 Trading Co. Ltd.Total 224898383.95 260000000.00 Less: Provision for bad debts Total 224898383.95 260000000.00 （2）Significant dividend receivable overdue for more than one year Reasons for Whether Company Ending Balance Age uncollected impairment has dividends occurred and the basis for judgment Retained for Guangzhou Bengang operations to Steel & Iron Trading 58000000.00 1-2 years be recovered in Not Applicable Co. Ltd. the following year Total 58000000.00 2. Other Receivables (1) Other receivables disclosed by aging 318Bengang Steel Plates Co. Ltd. Annual Report 2024 Items 20141231 20131231 Within 1 year (inclusive) 57266931.07 284052848.38 1-2 years (inclusive) 89144027.11 35230832.41 2-3 years (inclusive) 13450953.62 33345904.56 3-4 years (inclusive) 31188795.54 3125628.24 4-5 years (inclusive) 842882.51 229028.24 Over 5 years 52141851.60 60748068.66 Subtotal 244035441.45 416732310.49 Less: bad debts 69124161.80 72197137.31 Total: 174911279.65 344535173.18 319Bengang Steel Plates Co. Ltd. Annual Report 2024 (2) Other receivables disclosed by method of bad debt provision 2024/12/312023/12/31 Carrying amount Provision for bad debts Carrying amount Provision for bad debts Items Percentage Provision Provision Provision Amount Percentage Book Value Percentage Percentage Percentage Book Value Amount （%） % Amount （%） （ ） （%） （%） Provision assessed 15752285.66 6.45 15752285.66 100.00 15752285.66 3.78 15752285.66 100.00 individually Provision assessed by grouping 228283155.79 93.55 53371876.14 23.38 174911279.65 400980024.83 96.22 56444851.65 14.08 344535173.18 credit risk characteristics Including: By Aging 201016027.11 82.37 53371876.14 26.55 147644150.97 373617582.97 89.65 56444851.65 15.11 317172731.32 By Risk 27267128.68 11.17 27267128.68 27362441.86 6.57 27362441.86 Total 244035441.45 100.00 69124161.80 174911279.65 416732310.49 100.00 72197137.31 344535173.18 320Bengang Steel Plates Co. Ltd. Annual Report 2024 Significant Provision for bad debts assessed individually： 2024/12/312023/12/31 Bad Item Other Provision for debts Basis for Other Provision for receivables bad debts ratio provision receivables bad debts （%） Benxi Steel (Group) Third Ceased Construction 12504978.59 12504978.59 100.00 12504978.59 12504978.59 Engineering production Co. Ltd.Total 12504978.59 12504978.59 12504978.59 12504978.59 Other receivables tested for impairment by portfolio: Portfolio tested by aging 2024/12/31 Items Provision for bad Carrying amount Bad debts ratio (%) debts Within 1 year 57226023.92 572260.25 1.00 1-2 years 89144027.11 8914402.71 10.00 2-3 years 13450953.62 2690190.72 20.00 3-4 years 3317576.01 3317576.01 100.00 4-5 years 842882.51 842882.51 100.00 Over 5 years 37034563.94 37034563.94 100.00 Total 201016027.11 53371876.14 (3) Provision for Bad Debts Stage one Stage two Stage three Lifetime Lifetime 12-month Provision for bad debts expected credit expected credit Total expected credit loss (not credit loss (credit loss impaired) impaired) Beginning balance 2839575.35 4609838.82 64747723.14 72197137.31 321Bengang Steel Plates Co. Ltd. Annual Report 2024 Stage one Stage two Stage three Lifetime Lifetime 12-month Provision for bad debts expected credit expected credit Total expected credit loss (not credit loss (credit loss impaired) impaired) Beginning balance in current period --Transfer to Stage two -891440.27 891440.27 --Transfer to Stage -663515.20663515.20 three --Reversal to Stage two --Reversal to Stage one Current period -1375874.836766829.54-4480774.08910180.63 provision Current period reversal Current period write- back Current period write- -3983156.14-3983156.14 off Other change Ending balance 572260.25 11604593.43 56947308.12 69124161.80 (4) Provision reversal or recovery of bad debts of current period Change in the Current Period Reversal Items 2023/12/31 Write-off or Other 2024/12/31 Provision or Cancellation Changes Recovery Provision for other receivables 72197137.31 910180.63 3983156.14 69124161.80 bad debts Total 72197137.31 910180.63 3983156.14 69124161.80 (5) Written Off in the Current Period 322Bengang Steel Plates Co. Ltd. Annual Report 2024 Item Write-off Amount Other receivables written off 3983156.14 (6) Classification by Nature Nature 2024/12/31 2023/12/31 Subsidy for the "Living 87177700.00212242400.00 show belt" Project Intercompany Balances 153899831.94 198934209.00 Others 2957909.51 5555701.49 Total 244035441.45 416732310.49 (7) Top five debtors based on other receivables at the year-end Accounts Percentage Provision for Accounts Receivable of total doubtful debts Company Receivable Contract Asset and Accounts for Accounts Ending Ending Contract Receivable Receivable Balance Balance Asset and and Contract Ending Contract Asset Ending Balance Asset (%) Balance Xihu District Subsidy for People's Court of the "Living show belt" 87177700.00 1-2years 35.72 8717770.00 Benxi City Project Yantai Bengang Steel & Iron Sales Intercompany 27267128.68 over 5 Balances years 11.17 Co. Ltd.Benxi Steel (Group) Third 3-4years Construction Intercompany 12504978.59 over 5 5.12 12504978.59 Engineering Co. Balances years Ltd.Benxi Steel (Group) First Construction Intercompany Balances over 5 years over 5 years 1.33 3247307.07 Engineering Co.Ltd.Benxi Steel Intercompany Within 1 (Group) Co. Ltd. Balances 2674500.00 year 1-2 1.10 157740.00 years Total 132871614.34 54.44 24627795.66 323Bengang Steel Plates Co. Ltd. Annual Report 2024 3. Long-term Equity Investments 2024/12/312023/12/31 Item Book Value Provision for impairment Carrying amount Book Value Provision for impairment Carrying amount Investment in Subsidiaries 2391943459.43 2391943459.43 2222281590.24 2222281590.24 Investment in Associates and Joint Ventures 45413221.72 45413221.72 46910346.41 46910346.41 Total 2437356681.15 2437356681.15 2269191936.65 2269191936.65 1. Investment in Subsidiaries Change in the Current Period Provision Beginning for Ending Beginning balance balance of Ending balance of balance of Name of entity Additional Reduction in Impairment Provision of investment Provision for Other investment for Investment Investment in the impairment impairment Current Period Shanghai Bengang Metallurgical 229936718.57229936718.57 Technology Co. Ltd.Benxi Bengang Steel Sales Co. Ltd. 30000000.00 30000000.00 324Bengang Steel Plates Co. Ltd. Annual Report 2024 Change in the Current Period Provision Beginning for Ending Beginning balance balance of Ending balance of balance of Name of entity Additional Reduction in Impairment Provision of investment Provision for Other investment for Investment Investment in the impairment impairment Current Period Bengang POSCO Cold Rolling Sheet 1019781571.101019781571.10 Co. Ltd.Tianjin Bengang Steel Trading Co. 230318095.80230318095.80 Ltd.Changchun Bengang Steel Sales Co. 28144875.3628144875.36 Ltd.Yantai Bengang Steel Sales Co. Ltd. 219100329.41 219100329.41 Guangzhou Bengang Steel Trading 200000000.00200000000.00 Co. Ltd.Dalian Benruitong Automotive 65000000.0065000000.00 Materials Technology Co. Ltd.Shenyang Bengang Metallurgical 200000000.00200000000.00 Technology Co. Ltd. 325Bengang Steel Plates Co. Ltd. Annual Report 2024 Change in the Current Period Provision Beginning for Ending Beginning balance balance of Ending balance of balance of Name of entity Additional Reduction in Impairment Provision of investment Provision for Other investment for Investment Investment in the impairment impairment Current Period North Hengda Logistics Co. Ltd. 169661869.19 169661869.19 合计2222281590.24169661869.192391943459.43 2. Investment in Associates and Joint Ventures For investment in associates and joint ventures please refer to Note 5 (9) Long-term Equity Investments. 326Bengang Steel Plates Co. Ltd. Annual Report 2024 4. Operating Revenue and Operating Costs 1. Operating Revenue and Operating Costs 20242023 Item Revenue Cost Revenue Cost Principal 50700530631.9754540344179.6056614035827.2057748112204.90 business Other 1295762825.871309833559.741572946304.561545382455.23 business Total 51996293457.84 55850177739.34 58186982131.76 59293494660.13 2. Breakdown of Operating Revenue and Operating Costs 2024 Item Operating Revenue Operating Costs Classified by Time of Transfer of Goods: Recognized at a Point in Time 50700530631.97 54540344179.60 Recognized over a Period of Time Total 50700530631.97 54540344179.60 Classified by Operating Region: Domestic 42310190368.12 45840388808.50 Overseas 8390340263.85 8699955371.10 Total 50700530631.97 54540344179.60 5. Income on investment Item 2024 2023 Income from long-term equity investment (cost method) 163898383.95 464123512.41 Income from long-term equity investment (equity -1497124.69-1085968.20 method) Gains from Debt Restructuring 6459490.86 5179346.89 Other -47966970.21 -6626340.44 Total 120893779.91 461590550.66 327Bengang Steel Plates Co. Ltd. Annual Report 2024 18. Supplementary information (1) Details of non-recurring profit and loss Items Amount Notes Gains or Losses from the Disposal of Non-Current Assets including the reversal of previously recognized impairment provisions. -35999024.90 Government Grants Recognized in Profit or Loss for the Period except for those that are closely related to the company’s normal business operations comply with national policies are granted based on predetermined standards and have a continuous impact 180819165.49 on the company's profit or loss.Fair Value Gains or Losses from Financial Assets and Liabilities Held by Non-Financial Enterprises as well as disposal gains or losses from financial assets and liabilities excluding effective hedging activities related to the company's normal operations.Funds Occupation Fees Charged to Non-Financial Enterprises recognized in profit or loss for the period.Gains or Losses from Entrusted Investments or Asset Management by third parties.Gains or Losses from Loans Entrusted to External Parties.Losses from Asset Impairment Due to Force Majeure such as natural disasters.Reversal of Impairment Provisions for Individually Tested Receivables. 18456201.45 Gains from Acquiring Subsidiaries Associates or Joint Ventures where the acquisition cost is lower than the acquirer's share of the investee’s identifiable net assets at fair value.Net Profit or Loss of a Subsidiary from the Beginning of the Period to the Merger Date in a business combination under common control. 16120746.07 Gains or Losses from Non-Monetary Asset Exchanges.Gains or Losses from Debt Restructuring. 6459490.86 One-Time Expenses Due to Discontinuation of Business Activities such as severance payments for employees.One-Time Impact on Profit or Loss Due to Changes in Tax Accounting or Other Legal and Regulatory Adjustments.One-Time Share-Based Payment Expenses Recognized Due to the Cancellation or Modification of an Equity Incentive Plan.Gains or Losses from Changes in Fair Value of Payable Employee Compensation for cash-settled share-based payments after the vesting date.Gains or Losses from Fair Value Changes of Investment Properties measured using the fair value model.Gains from Transactions Conducted at Unfair Market Prices. 328Bengang Steel Plates Co. Ltd. Annual Report 2024 Items Amount Notes Gains or Losses from Contingent Events Unrelated to the Company’s Normal Business Operations.Management Fee Income from Entrusted Operations.Other Non-Operating Income and Expenses Not Included in the 40152707.29 Above Categories.Other Gains or Losses that Meet the Definition of Non-Recurring Gains and Losses.Subtotal 226009286.26 Income Tax Effect 33544011.54 Effect of Non-controlling Interests (After Tax) 8134849.37 Total 184330425.35 (2) Net asset yield and earnings per share Weighted Earnings per share (Yuan) Profit in the Reporting Period average net Basic EPS Diluted EPS assets yield Net profit attributable to ordinary -34.29%-1.226-1.226 shareholders Net profit attributable to ordinary shareholders after deducting non- -35.77% -1.271 -1.271 recurring profit and loss (3) Differences between Domestic and Foreign Accounting Standards 1. The differences in net profit and net assets in financial reports disclosed under International Financial Reporting Standards and Chinese accounting standards □ applicable √ not applicable 2. The difference between net profit and net assets in financial reports disclosed under overseas accounting standards and Chinese accounting standards □ applicable √ not applicable 329Bengang Steel Plates Co. Ltd. Annual Report 2024 3. Explanation of the reasons for differences in accounting data under domestic and foreign accounting standards. If the data that has been audited by an overseas audit institution is adjusted for differences the name of the overseas institution should be indicated. (4) Others 330