Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Bengang Steel Plates Co. Ltd.2023 Semi-Annual Report
August 2023
1Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Section I Important Notice Contents and Definitions
The Company’s Board of Directors Board of Supervisors directors supervisors and senior
managers guarantee that the content of the semi-annual report is true accurate and complete and
there are no false records misleading statements or major omissions and assume individual and
joint legal responsibilities.Li Yan legal representative Zheng Zhengli Chief financial officer and Sun Yanbin Chief
accountant (the person in charge of the accounting) hereby declare that they guarantee the
authenticity accuracy and completeness of the financial report in this semi-annual report.All directors have attended the board meeting for reviewing the semi-annual report.This report involves forward-looking statements such as future plans and does not constitute a
substantial commitment by the Company to investors. Investors are reminded to pay attention to
investment risks. This report is compiled in Chinese and English respectively. The Chinese
version shall prevail when there are any controversial statements in the two versions.The Company has described the existing risks and countermeasures in detail in this report please
refer to Section III-X “Risks Faced by the Company and Countermeasures”. “China SecuritiesJournal” “Securities Times” Shenzhen Stock Exchange website and Juchao Information Network
are the media selected by the company for information disclosure. All the information of the
Company is subject to the information published in the above-mentioned designated media.Investors are reminded to pay attention to investment risks.The Company does not have any significant risks that require investors’ attention.The Company plans not to distribute cash dividends bonus shares and convert capital reserve
into share capital.
2Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Contents
Section I Important Notice Contents and Definition... 2
Section II Company Profile and Main Financial Inde... 6
Section III Management Discussion and Analysis ...... 9
Section IV Corporate Governance .................... 28
Section V Environmental and Social Responsibility .. 30
Section VI Important Events ........................ 38
Section VII Changes in Share Capital and Sharehold.. 61
Section VIII Preference Shares Related Situation ... 66
Section IX Bonds Related Situation ................. 67
Section Ⅹ Financial Report ......................... 70
3Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Reference File Directory
1. Financial statements signed and sealed by Legal representative Chief financial officer Chief accountant;
2. The originals of all company documents and announcements publicly disclosed during the reporting period;
3. Semi-annual reports published in other securities markets.
4Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Definition
Terms to be defined Refers to Definition
Bengang Bancai Bengang Steel the
Refers to Bengang Steel Plates Co. Ltd.Company the Listed Company
Ansteel Group Refers to Ansteel Group Co. Ltd.Bensteel Group Refers to Bensteel Group Co. Ltd.Benxi Steel and Iron Co. Bengang Co. Refers to Benxi Steel and Iron (Group) Co. Ltd.SSE Refers to Shenzhen Stock Exchange
Liaoning Provincial State-asset Liaoning State-owned Asset Supervisory
Refers to
Administration and Management Committee
Bengang Puxiang Cool Rolling Steel
Bengang Puxiang Refers to
Sheet Co. Ltd.Ansteel Finance Company Refers to Ansteel Group Finance Co. Ltd.Ansteel Co. Refers to Ansteel Co. Ltd.Pangang Group Vanadium and Titanium
Vanadium and Titanium Co. Refers to
Resources Co. Ltd.
5Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Section II Company Profile and Main Financial Index
I. Company Profile
Bengang Bancai
Stock abbreviation Stock code 000761 200761
Bengangban B
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 Li Yan
II. Contact Person and Contact Information
Secretary of Board of Directors Representative of Securities Affairs
Name Zheng Zhengli Chen Liwen
No. 1-1 Steel Road Pingshan District No. 1-1 Steel Road Pingshan District
Contact address Benxi City Liaoning Province Benxi City Liaoning Province
Telephone number 024-47827003 024-47828980
Fax 024-47827004 024-47827004
E-mail zhengzhengli76@126.com bgbc000761@126.com
III. Other Information
1. Contract Information of the Company
Whether the Company’s registered address Company’s office address and mail code Company website E-mail address etc. have
changed during the reporting period
□Applicable □Not applicable
The Company's registered address Company office address and mail code Company website E-mail etc. have not changed
during the reporting period. For details please refer to the 2022 annual report.
2. Information Disclosure and Preparation Location
Whether the location of information disclosure and preparation changed during the reporting period
□Applicable □Not applicable
The stock exchange website and media name and website where the Company discloses the semi-annual report and the location
where the Company’s semi-annual report is prepared has not changed during the reporting period. For details please refer to the
2022 annual report.
6Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
3. Other Relevant Information
Whether other relevant information has changed during the reporting period
□Applicable □Not applicable
IV. Main Financial Data and Financial Index
Whether the company needs to retrospectively adjust or restate accounting data for previous years
□Yes □No
Current period Previous period Changes over previous period
Operating income (RMB) 30567409205.03 35015177304.98 -12.70%
Net profit attributable to the
shareholders of the listed -1004945623.68 564435010.86 -278.04%
company (RMB)
Net profit after deducting of
non-recurring gains or losses
attributable to the -1038332938.51 522219426.93 -292.88%
shareholders of listed
company (RMB)
Net cash flow from operating
4662637281.81227451842.211949.94%
activities (RMB)
Basic earnings per share
-0.24460.1400-274.71%
(RMB/Share)
Diluted earnings per share
-0.15580.1400-211.29%
(RMB/Share)
Weighted average return on
-5.49%2.60%-8.09%
equity
Changes over 31 December 30 June 2023 31 December 2022 2022
Total assets (RMB) 45871498081.84 44114652440.64 3.98%
Net assets attributable to
shareholders of the listed 17811005923.44 18789151216.62 -5.21%
company (RMB)
V. Differences in Domestic and Foreign Accounting Data
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.
7Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
2. Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under Overseas
and Chinese Accounting Standards
□Applicable □Not applicable
There are no differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting
standards during the reporting period.VI. Items and Amount of Non-recurring Profits and Losses
□Applicable □Not applicable
Unit: yuan
Items Amount Notes
Profit or loss from disposal of non-
current assets (including the reversal part 31053599.66
of the provision for asset impairment)
Government grants attributable to profit
and loss of current period (except such
government subsidy closely related to the
company's normal business operation
3518092.14
meeting the regulation of national policy
and enjoyed constantly in certain quota
or quantity according to a certain
standard)
Profit and loss from entrusting others to
-2796530.07
invest or manage assets
Debt restructuring profit and loss 694683.35
Other non-operating revenue and
-30054378.76
expenditure other than above items
Less: Impact of income tax 75725.75
Less: Impact of minority interests (net of
tax) 6025.40
Total 2333715.17
Other profit and loss items that meet the definition of non-recurring profit and loss:
□Applicable □Not applicable
There exists no situation of other profit and loss items that meet the definition of non-recurring profit and loss.Explanation on defining the non-recurring profit and loss items listed in the “Interpretive Announcement No. 1 on InformationDisclosure of Companies Offering Securities to the Public - Non-recurring Profit and Loss” as recurring profit and loss items
□Applicable □Not applicableThe Company does not define the non-recurring profit and loss items listed in the “Interpretive Announcement No. 1 onInformation Disclosure of Companies Offering Securities to the Public - Non-recurring Profit and Loss” as recurring profit and
loss items.
8Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Section III Management Discussion and Analysis
I. Main Business of the Company During the Reporting Period
1. Industry Development Situation
In the first half of 2023 the iron and steel industry showed a situation of rebounding production and weak consumption internally
and externally strong which fell short of expectations as a whole. Especially in the second quarter the demand of the downstream
steel industry is insufficient the fundamentals of steel products are gradually deteriorating and the overall steel price is running
weak. In the first half of the year the steel market was still in a state of "high cost" and "low profit".
2. Main Business Main Products and their Uses
During the reporting period the main businesses engaged in by the company include iron and steel smelting rolling processing
power generation coal chemical industry special steel profiles railways import and export trade scientific research product sales
etc. and basically established a high-quality steel base mainly for automobile steel. More than 60 varieties and more than 7500
specifications of product series have been formed and the proportion of high value-added and high-tech products has reached
more than 80%. Leading products such as automotive surface panels home appliance panels oil pipeline steel container panels
and ship panels are widely used in the fields of automobiles home appliances petrochemicals aerospace machinery
manufacturing energy transportation architectural decoration and metal products and exported to more than 60 countries and
regions. During the reporting period there was no major change in the company's main business.
3. Business Model
Procurement mode: The company's procurement mode includes domestic procurement and foreign procurement. Domestic
material procurement is carried out through centralized procurement unified bidding price comparison and negotiation. The
procurement of foreign materials is carried out through long-term association procurement direct procurement open and invited
bidding price inquiry and comparison competitive negotiation consultation procurement and other modes and is mainly
represented by Bensteel Group International Economic and Trade Co. Ltd.Sales model: The company's sales are divided into domestic sales and export sales. The domestic sales mainly adopt the direct
sales model. The company directly sells to large customers and other small and medium customers sell to them through regional
sales subsidiaries. The export mainly utilizes the powerful marketing network accumulated by Bensteel Group International
Economic and Trade Co. Ltd. in international trade for many years and its agent company exports the products and pays the
agency fee to Bensteel Group International Economic and Trade Co. Ltd.
4. Key Drivers of Performance
During the reporting period in the face of the severe steel market situation the company closely focused on the "7531" strategic
goal of Ansteel Group and the "1357" work guidelines of Bensteel Group maintained strategic determination enhanced
development confidence and established "cash is king customer first" " keep an eye on the market pay close attention to the field
anchor the advanced level of the industry and use the two hard measures of "benchmarking + lean" to promote extreme cost
reduction and quality improvement to promote vitality through reform and to increase efficiency with efficiency. We spared no
9Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
effort to prevent risks and plug loopholes and achieved hard-won achievements in production and operation and enterprise reform
and the level of corporate governance was significantly improved.The company's main operating indicators were completed: the output of pig iron was 5.0294 million tons an increase of 79300
tons year-on-year an increase of 1.6% year-on-year; the output of crude steel was 5.6688 million tons an increase of 470600 tons
year-on-year an increase of 9.05% year-on-year; the output of steel products was 8.1371 million tons an increase of 42700 tons
or 0.52% year-on-year. Looking back on the work in the first half of the year it is mainly reflected in the following aspects:
(1) Implement the strategy of high-quality products and the output and quality of automobile sheets have reached new heights. A
total of 1.249 million tons of auto sheets were produced an increase of 244000 tons year-on-year. The user and product
connotation have been significantly improved the proportion of direct-supply users' orders has increased to 84% and the
proportion of competitive products has increased to 35.28%. Obtained the exclusive contracting share of 38 parts of Mercedes-
Benz heavy truck CXT new model; successfully passed BMW SAIC Passenger Vehicle and other production line certifications
and 11 product certifications and completed GM Ideal and Chery Automobile certifications.
(2) Adhere to the needs of users and the level of physical quality has been greatly improved. Fully implement the "seven iron
laws" of Bengang steel and plates's quality and service adhere to customer needs as the center vigorously promote the
standardized construction of "system + lean" and enhance the hard power of Bengang steel and plates's brand. The one-time pass
rate of original varieties in the whole process has been greatly improved and the quality cost has been reduced by 15%; the
delivery rate of Class A direct supply user contracts and main engine factory contracts has reached 100%.
(3) Promote extreme cost reduction and the process cost reduction effect is remarkable. Relying on the Nissin and Nissin
settlement system we will keep a close eye on procurement manufacturing and sales adhere to benchmarking and tapping
potentials and use the concept of "zero waste" to break down cost reduction indicators to positions. The company's 19 indicators
such as power consumption per ton of steel turnover rate of torpedo tanks converter gas recovery and first hot rolling production
have reached the best level in history creating profits of 134 million yuan and process quota indicators have decreased by 160
million yuan year-on-year.
(4) Continuing to concentrate superior forces and create a "star production line". Guided by the "star production line" through the
inclination of resources and policies on the basis of realizing economic operation the production efficiency has been greatly
improved and key indicators have continued to improve. The "star production line" of each process has set new production
capacity records many times.
(5) Carry out lean reform and promote management upgrading. Promote the separation of the main and auxiliary the separation of
management and office and professional integration and optimize the establishment of 118 government departments. Establish a
logistics center and resource service branch promote the separation of main and auxiliary and realize the deep integration of
logistics resources and renewable resources. Carry out actions related to building a world-class enterprise in an all-round way and
implement 108 promotion tasks with a completion rate of over 93%. Organized a special training camp for operation managers
carried out problem-oriented "red card combat" activities found 456 abnormal items and completed 95% of the rectification;
promoted 82 lean topics and improved 1077 proposals. Carry out the "two systems and one contract" innovative penetrating
assessment mode with a signing rate of 100%.
(6) Hold the bottom line of safety and build a modern green steel enterprise. In accordance with the requirements of the "four
unifications" strengthen the management and control of related parties and implement the "blacklist" system and regional
restrictive management. Carry out risk identification of all elements and processes accumulatively identify 11353 safety risks
10Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
and implement dynamic management on all of them. Adhere to the "six combinations" establish the concept of "active work all
staff work fast work" and vigorously promote the construction of garden-style factories. According to the "Four Modernizations"
list the overall construction progress has been completed by 89% the newly added green area is 290000 square meters and the
green rate has reached 14.53%.II. Analysis on Core Competitiveness
The company adheres to the innovation-driven and "high-quality goods + service" development model with the strategic goal of
building a highly internationally competitive high-quality plate base a domestic first-class special steel base and a comprehensive
service provider and plays a strategic leading role focusing on improving quality and efficiency variety upgrading technological
innovation green and intelligent manufacturing etc. innovate management ideas enhance the core competitiveness of enterprises
and promote enterprises to achieve high-quality green and intelligent development.
1. Manufacturing capacity. Guided by "star production lines" the division of labor in production lines will be refined to promote
economic operation. Adhere to the iron system as the core focus on the connection of iron and steel processes reasonably match
the steel post-process production lines and resources take the improvement of the fist product increment represented by the
automobile sheet as the main line continue to optimize the product and user structure and promote the maximization of benefits .Grasp the "lifeline" of quality take the "seven iron laws" of company quality and service as the fundamental starting point
comprehensively improve product quality adhere to customer-centricity promote the standardized construction of "system + lean"
and enhance brand market competitiveness.
2. Equipment transformation and upgrading. Adhere to the efficiency as the center proceed from the long-term development of the
company unify the thinking clarify the positioning and accelerate the upgrading of equipment as a whole. In 2023 the company
issued a fixed asset investment plan of 1.52 billion yuan focusing on the implementation of items such as the environmental
protection and intelligent upgrade of the stockyard the upgrade of the 1780 production line the transformation of the first cold
rolling main body of the cold rolling plant and the ultra-low emission transformation. Adhere to high-starting planning and high-
standard construction strictly control the level of technology energy consumption and environmental protection and the level of
key technology and equipment has reached the industry's advanced level. At present a number of key projects such as the No. 5
RH refining transformation of the steel plant and the new tertiary dust removal system of the steel plant have been put into
operation. Projects such as the environmental protection transformation of the material yard of the Ironmaking General Plant and
the energy centralized control of the energy management and control center will enter the commissioning stage in September 2023.
3. New product development capabilities. Successfully developed 26 brands of new products of which 24 brands achieved market
sales a year-on-year increase of 105%. The successful development of galvanized high-strength QP980+Z added another member
to the company's third-generation automotive steel family. The special steel products represented by 18CrNiMo7-6 fill the blank of
steel for wind power gears in Benxi Iron and Steel. Breed the first product complete Delta-TRIP780 laboratory research and
industrial trial production of high-strength and high-fatigue performance rim steel BG650LW.
4. Technological innovation ability. Relying on the Liaoning Provincial Industry-University-Research Innovation Alliance
Platform we carried out new product development and cutting-edge technology research and signed 10 industry-university-
research cooperation projects with Dalian University of Technology Northeastern University and Liaoning University of Science
and Technology. In terms of standards 60 enterprise standards have been drafted 2 international standards are under research 18
national and industry group standards are under research and 2 newly released and implemented group standards. In terms of
intellectual property rights the number of patents accepted in the first half of the year was 210 and the number of authorized
patents was 100 including 36 authorized invention patents and 2 overseas patent authorizations. In terms of scientific and
11Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
technological achievements 9 scientific and technological achievements including "Development of Intensive Ultra-High-Strength
Steel Galvanized Dual-Phase Steel Series Based on Pre-oxidation Technology" were nominated for the 2022 Liaoning Provincial
Science and Technology Progress Award reaching the best level in history. "2000MPa Hot Formed Steel" won the first prize in
the 5th China Automobile Lightweight Design Competition and "Hot Stamping Steel Series Product Development" was included
in the "Science and Technology of China" Pilot Technology List in the field of advanced materials.
5. Green development capability. In accordance with the policy requirements of the country and Liaoning Province on ultra-low
emissions in the iron and steel industry relying on professional planning and research institutions to scientifically prepare
environmental protection improvement plans and project implementation plans through clean production treatment of three
wastes environmental protection management "AAA" scenic garden factory construction and other all-round green improvements
the community of environmental quality has been realized. Promote the integration of industry and city and strive to build the
company into an "ecological steel factory" that develops harmoniously with the city.
6. Intelligent manufacturing capability. Taking "digitalization and intelligence" as the starting point promote the in-depth
application of 10 business systems including sales management scientific research management and production management of
the "Benxi Iron and Steel Industry Management and Informatization Overall Improvement Project". Promote the implementation
of smart quality demonstration projects such as the quality consistency system energy centralized control and iron front
centralized control projects and promote the company's digital transformation. Guided by the core indicators of the 14th Five-
Year Plan promote the construction of "four modernizations" indicators such as automation informatization digitalization and
intelligence. The automatic control rate of production lines in key areas of production units has increased by 30% and the
coverage rate of production execution system construction has reached 100%. The 3D job replacement rate the construction
completion rate of the four production lines and the four chemical plants increased by 30%.III. Main Business Analysis
Please refer to the relevant content in "I. Main Business of the Company During the Reporting Period ".Changes in main financial data
Unit: yuan
Reasons for Current period Previous period Fluctuations
fluctuations
Operating income 30567409205.03 35015177304.98 -12.70%
Operating costs 30714640963.91 33377477540.63 -7.98%
Selling expenses 69901883.24 67430875.17 3.66%
Administrative
339569021.49352304684.10-3.61%
expenses
Mainly affected by
Finance costs 161557765.87 293093407.82 -44.88% exchange rate changes.Mainly due to changes
Income tax expenses 33191710.84 200505321.15 -83.45%
in profits.Research and
development 969879939.00 963465760.00 0.67%
investment
Mainly due to the
Net cash flow from increase in bills issued
4662637281.81227451842.211949.94%
operating activities and the decrease in
inventory.
12Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Net cash flows from
-893054682.05-755346775.62
investing activities
Net cash flow from
-1961254120.62-1022947841.22
financing activities
Net increase in cash
1838873251.94-1548625764.97
and cash equivalents
Significant changes in the company's profit composition or profit sources during the reporting period
□Applicable □Not applicable
There was no major change in the company's profit structure or profit sources during the reporting period.Composition of Operating Income
Unit: yuan
Current period Previous period
Proportion of Proportion of Fluctuations
Amount Amount
Operating Income Operating Income
Total operating
30567409205.03100%35015177304.98100%-12.70%
income
Classified by industries
Industry 30567409205.03 100.00% 35015177304.98 100.00% 0.00%
Classified by products
Steel plate 29094813444.07 95.18% 33109977666.90 92.77% 2.41%
Others 1472595760.96 4.82% 1905199638.08 7.23% -2.41%
Classified by areas
Northeast 10681770567.78 34.94% 12303656651.85 35.14% -0.20%
North China 3691103918.34 12.08% 4208207527.97 12.02% 0.06%
East China 11397086053.98 37.29% 13168521446.80 37.61% -0.32%
Northwest 69757642.43 0.23% 75492130.13 0.22% 0.01%
Central south 1160763129.06 3.80% 1323870974.23 3.78% 0.02%
Export 3566927893.44 11.67% 3935428574.00 11.24% 0.43%
13Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
The industry product or region accounting for more than 10% of the company's operating income or operating profit
□Applicable □Not applicable
Unit: yuan
Changes in Changes in Changes in gross
Gross
operating income operating costs profit margin Operating income Operating costs profit compared to the compared to the compared to the
margin
previous year previous year previous year
Classified by industries
Industry 30567409205.03 30691860493.93 -0.41% -12.70% -7.98% -5.09%
Classified by products
Steel plate 29094813444.07 29253134435.47 -0.54% -12.13% -7.16% -5.37%
Others 1472595760.96 1461506528.44 0.75% -22.71% -21.75% -1.22%
Classified by areas
Northeast 10681770567.77 10737315774.72 -0.52% -13.18% -8.64% -5.00%
North
China 3691103918.34 3707111460.10 -0.43% -12.29% -7.37% -5.33%
East China 11397086053.98 11453189153.09 -0.49% -13.45% -8.70% -5.23%
Northwest 69757642.43 70190139.81 -0.62% -7.60% -2.45% -5.31%
Central
south 1160763129.06 1168540242.02 -0.67% -12.32% -7.47% -5.28%
Export 3566927893.44 3578294194.17 -0.32% -9.36% -4.42% -5.19%
In the event that the statistical caliber of the company's main business data is adjusted during the reporting period the company's
main business data for the latest period adjusted according to the caliber at the end of the reporting period
□Applicable □ Not applicable
IV. Non-core Business Analysis
□Applicable □Not applicable
Unit: yuan
Proportion of total Explanation of the Whether it is Amount profit causes sustainable
Equity method
accounting for long-
Investment income -2541506.30 0.27% No term equity investment
etc.Due to the provision
Asset impairment -84458260.66 8.89% for price of inventory No
decline
Gains on disposal of
Non-operating income 51584548.03 -5.42% No fixed assets
Non-current asset
Non-operating
50585327.13 -5.32% damage and scrapping No
expenses
loss
14Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
V. Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: yuan
30 June 2023 31 December 2022
Reasons for Proportion of Proportion of Fluctuations
Amount Amount fluctuations
total assets total assets
Monetary funds 3656559532.07 7.97% 4805370697.71 10.22% -2.25%
Accounts
914407662.171.99%307887350.080.65%1.34%
receivable
Inventories 7602269679.35 16.57% 8740534055.47 18.59% -2.02%
Long-term equity
47556655.020.10%3067239.290.01%0.09%
investments
Fixed assets 24254961069.74 52.86% 24397907946.02 51.89% 0.97%
Construction in
4151149369.239.05%3012446289.296.41%2.64%
progress
Right-of-use
1349803446.632.94%1410177981.093.00%-0.06%
assets
Short-term
300020000.000.65%3349342280.007.12%-6.47%
borrowings
Contract liabilities 3733739770.22 8.14% 3977011514.55 8.46% -0.32%
Long-term
959713911.602.09%3002383788.136.39%-4.30%
borrowings
Lease liabilities 1364333523.13 2.97% 1404900432.63 2.99% -0.02%
2. Main Overseas Assets
□Applicable □Not applicable
3. Assets and Liabilities Measured at Fair Value
□Applicable □Not applicable
4. Restricted Property Rights as of the End of the Reporting Period
Items Balance as at 30 June 2023 Reason for restriction
Monetary funds 521023596.93 Deposit for notes and letter of credit
Notes receivable 255189626.40 Pledge for banker's acceptance bill
Total 776213223.33
15Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
VI. Investment Situation Analysis
1. General Situation
□Applicable □Not applicable
2. Significant Equity Investment Acquired During the Reporting Period
□Applicable □Not applicable
3. Significant Non-equity Investments in Progress During the Reporting Period
□Applicable □Not applicable
4. Financial Assets Investment
(1) Securities investment
□Applicable □Not applicable
There was no securities investment in the company during the reporting period.
(2) Derivatives Investment Situation
□Applicable □Not applicable
There was no derivative investment in the reporting period of the company.
5. Use of raised funds
□Applicable □Not applicable
16Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(1) Overall use of raised funds
□Applicable □Not applicable
Unit: ten thousand yuan
Total Used amount The total The total amount Cumulative Amount of
Method of amount of of raised used amount of funds raised for
Cumulative total The total The purpose and
Year amount of funds
proportion of total amount of destination of funds raised
raising funds raised fund this of funds change of purpose raised for change raised funds for during the changes of funds raised the raised funds
after being idle
funds period raised for more than reporting period of purpose purposes not used not yet used two years
Non-public
2018 offering of 396580 4520.32 338726.62 57853.38 Deposit
stocks
Public
issuance of
2020 convertible 675920 62608.05 423676.46 252243.54 Deposit 101479
corporate
bonds
Total -- 1072500 67128.37 762403.08 0 0 0.00% 310096.92 -- 101479
Description of the overall use of raised funds
1.Status of use of funds for investment projects with raised funds
For the actual use of the company's raised funds in 2022 please refer to Attachment 1 "Comparison Table of Use of Funds Raised from Non-public Issuance of Stocks" and Attachment 2
"Comparison Table of Use of Funds Raised from Public Issuance of Convertible Corporate Bonds".
2.Status of changes in the implementation location and implementation method of the projects invested by raised funds
During the reporting period there is no situation of change the investment projects of raised funds or their implementation locations and implementation methods.
3.Status of preliminary investment and replacement of raised funds for investment projects
(1) Status of preliminary investment and replacement of funds raised from non-public offering of stocksAt the 14th meeting of the 7th Board of Directors and the 10th meeting of the 7th Board of Supervisors of the Company “About the use of raised funds to replace pre-invested raised funds forinvestment projects “was reviewed and approved. Before the raised funds arrive in the account in order to ensure the smooth implementation of the raised investment projects the company usesself-raised funds for project construction. As of February 28 2018 the pre-invested amount of self-raised funds replaced by raised funds was RMB 1822749211.07 including RMB
1484133089.39 for the cold-rolled high-strength steel reconstruction project and RMB 338616121.68 for the hot-dip galvanizing production line project of the third cold rolling plant.
During the period from March 1 2018 to February 28 2019 the company paid RMB 88296207.56 for the construction of projects with self-raised funds of which RMB 86709830.40 was
invested in the cold-rolled high-strength steel reconstruction project and the third cold-rolling plant was hot-dip galvanized. The zinc production line project is 1586377.16 yuan (not yet
17Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
replaced from the special account of raised funds). The company has transferred 86709830.40 yuan from the fundraising account to the general deposit account in 2020.During the period from March 1 2019 to May 31 2021 the company paid RMB 62608242.01 for the construction of the project with self-raised funds of which RMB 50391999.49 was
invested in the cold-rolled high-strength steel reconstruction project and the third cold-rolling plant was hot-dip galvanized. The zinc production line project is RMB 12216242.52. The
company has transferred the above amount from the fundraising account to the general deposit account in 2021.From June 1 2021 to May 31 2022 the company will use self-raised funds to pay the construction amount of the raised funds investment project of RMB 37435207.38 all of which will be
used for the construction of cold-rolled high-strength steel transformation projects. As of December 31 2022 the company has transferred the above amount from the fund-raising account to the
general deposit account in 2022.
(2) Status of preliminary investment and replacement of funds raised from public issuance of convertible corporate bonds
After the 13th meeting of the 8th Board of Directors and the 11th meeting of the 8th Board of Supervisors of the Company the "Proposal on Using Raised Funds to Replacing Pre-invested
Raised Funds for Investment Projects and Self-raised Funds for which Issuance Fees Have Been Paid" was reviewed and approved. The company used the raised funds to replace the self-raised
funds that had been invested in the investment projects with raised funds and had paid the issuance fees and the total replacement amount was 366180860.17 yuan. There is no disguised
change in the use of the raised funds in this replacement and it does not affect the normal progress of the investment projects with the raised funds. The replacement time is less than 6 months
from the time when the raised funds arrive in the account which is in line with the relevant laws and regulations.Before the raised funds arrive in the account the company has used self-raised funds to pre-invest in the raised investment projects according to the progress of the project. As of May 31 2020
the pre-invested amount of self-raised funds replaced by raised funds was 365630860.17 yuan including 76278945.59 yuan for the No. 8 casting machine project of the steelmaking plant
119043290.09 yuan for the No. 5 blast furnace capacity replacement project in the ironmaking plant and special The steel electric furnace upgrade and reconstruction project is 59948807.90
yuan the CCPP power generation project is 95098084.16 yuan and the steel plant No. 4-6 converter environmental protection renovation project is 15261732.43 yuan. As of July 6 2020 the
above-mentioned issuance fee of RMB 55000.00 paid by the company's own funds will be replaced with the raised funds.During the period from March 1 2019 to May 31 2021 the company used self-raised funds to pay the raised funds to invest in the project construction amount of RMB 1082356809.47. The
No. 5 casting machine project is RMB 55364729.08 the No. 5 blast furnace capacity replacement project in the iron plant is RMB 628049033.12 the special steel electric furnace upgrading
project is RMB 253298156.22 the CCPP power generation project is RMB 115353050.36 and the No. 4-6 converter environmental protection renovation project in the steel plant Item RMB
30111840.69. The company has transferred the above amount from the fundraising account to the general deposit account in 2021.
During the period from June 1 2021 to May 31 2022 the company will use self-raised funds to pay the construction amount of the raised funds investment project of RMB 614208698.23
among them: RMB 12881890.61 for the No. 8 casting machine project of the steel plant RMB 17508088.97 for the capacity replacement project of the No. 5 blast furnace of the Iron Plant
RMB 364155482.35 for the special steel electric furnace upgrading project RMB 186441497.75 for the CCPP power generation project RMB 33221738.55 for the environmental protection
renovation project of No. 4 and No. 6 converters in the steelmaking plant. The company has transferred the above amount from the fund-raising account to the general deposit account in 2022.
4. Status of temporary replenishment of working capital with idle raised funds
During the reporting period according to the construction progress of the company's raised funds investment projects and the use plan of raised funds part of the funds raised by the company's
non-public offering is temporarily idle. According to the China Securities Regulatory Commission's "Listed Company Supervision Guidelines No. 2 - Regulatory Requirements for the
Management and Use of Funds Raised by Listed Companies (Revised in 2022)" (CSRC Announcement [2022] No. 15) and other regulatory documents in line with the principle of maximizing
18Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
the interests of shareholders on the premise of ensuring the capital demand of the investment projects of the raised funds and the normal progress of the investment projects of the raised funds
in order to improve the efficiency of the use of raised funds and further reduce the company's financial costs to reduce financial expenses and protect the interests of investors the company
intends to temporarily supplement working capital with idle raised funds. The use period shall not exceed 12 months from the date of deliberation and approval by the board of directors.Supplementing working capital will save the company financial expenses.
(1) Temporary replenishment of working capital with funds raised from non-public offering of stocks
1) In March 2018 the funds raised by the non-public offering of shares temporarily supplemented the working capital
In 2018 the company used 530000000.00 yuan of idle raised funds to temporarily supplement working capital and the period of use shall not exceed 12 months from the date of approval by
the board of directors (March 13 2018). As of March 11 2019 the company has returned all the above-mentioned idle raised funds of RMB 530000000.00 used to temporarily supplement
working capital to the company's special account for raised funds.
2) In March 2019 the funds raised from the non-public offering of shares temporarily supplemented working capital
In 2019 the company used idle raised funds of RMB 742000000.00 to temporarily supplement working capital and the period of use shall not exceed 12 months from the date of approval by
the board of directors (March 21 2019). As of March 23 2020 the company has returned all the above-mentioned idle raised funds of RMB 742000000.00 used to temporarily supplement
working capital to the company's special account for raised funds.
3) In March 2020 the funds raised by the non-public offering of stocks temporarily supplement the working capital
The company used idle raised funds of RMB666000000.00 (RMB370000000.00 for the cold-rolled high-strength steel reconstruction project and RMB296000000.00 for the hot-dip
galvanizing production line project of the third cold rolling plant) to temporarily supplement the working capital. It was reviewed and approved at the ninth meeting and the eighth meeting of
the eighth supervisory committee. The independent directors of the company issued a clear agreement and the replenishment of working capital should not exceed 12 months.The sponsor of the company's non-public offering agreed to the company's use of idle raised funds to temporarily supplement working capital and issued "Guotai Junan Securities Co. Ltd.'s
Verification Opinions on the Company's Use of Idle Raised Funds to Temporarily Supplement Working Capital".As of July 27 2020 the company has returned all the above-mentioned idle raised funds of RMB 666000000.00 used to temporarily supplement working capital to the company's special
account for raised funds.
4) In July 2020 the funds raised by the non-public offering of stocks temporarily supplement the working capital
The company used idle raised funds of 666000000.00 yuan (370000000.00 yuan for the cold-rolled high-strength steel renovation project and 296000000.00 yuan for the hot-dip galvanizing
production line project of the third cold rolling plant) to temporarily supplement the working capital. The fourth meeting and the 12th meeting of the 8th Supervisory Committee have reviewed
and approved and the independent directors of the company have issued a clear agreement and the time for replenishing working capital should not exceed 12 months.The sponsor of the company's non-public offering agreed to the company's use of idle raised funds to temporarily supplement working capital and issued "Guotai Junan Securities Co. Ltd.'s
Verification Opinions on the Company's Use of Idle Raised Funds to Temporarily Supplement Working Capital".As of July 27 2021 the company has returned all the above-mentioned idle raised funds of RMB 666000000.00 used to temporarily supplement working capital to the company's special
account for raised funds.
5) In July 2021 the funds raised from the non-public offering of stocks will be temporarily supplemented with working capital
The company used 604000000.00 yuan of idle raised funds (320000000.00 yuan for the cold-rolled high-strength steel transformation project 284000000.00 yuan for the hot-dip galvanizing
production line project of the third cold-rolling plant) to temporarily replenish working capital. The matter was considered and approved at the 19th meeting of the eighth board of directors and
19Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
the seventeenth meeting of the eighth board of supervisors held on July 28 2021.The company's independent directors have issued a clear consent and the replenishment of working capital shall not exceed 12 months.The sponsor of the company's non-public offering agreed to the company's use of idle raised funds to temporarily replenish working capital and issued the "Guotai Junan Securities Co. Ltd.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 the above-mentioned idle raised funds of 604000000.00 yuan for temporary supplementary working capital to the company's special
account for raised funds.
6) In July 2022 the funds raised from the non-public offering of stocks will be temporarily supplemented with working capital
The company used idle raised funds of 592000000.00 yuan (308000000.00 yuan for the cold-rolled high-strength steel transformation project and 284000000.00 yuan for the hot-dip
galvanizing production line project of the third cold-rolling plant) to temporarily supplement working capital matters it was deliberated 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 issued a clear consent and the replenishment of working
capital shall not exceed 12 months.The sponsor of the company's non-public offering agreed to the company's use of idle raised funds to temporarily replenish working capital and issued the "Guotai Junan Securities Co. Ltd.Verification Opinion on the Company's Use of Idle Raised Funds to Temporarily Supplement Working Capital".As of December 31 2022 the balance of the company's temporary replenishment of working capital using idle raised funds from non-public issuance of stocks was 592000000.00 yuan.
(2). Temporary replenishment of working capital with funds raised from public issuance of convertible corporate bonds
1) Public issuance of convertible corporate bonds in July 2020 to raise funds to temporarily supplement working capital
The company used idle raised funds of RMB4180000000.00 (RMB1010000000.00 yuan for the high-grade high magnetic induction non-oriented silicon steel project RMB220000000.00
for the No. 8 casting machine project of the steelmaking plant RMB800000000.00 for the production capacity replacement project of the No. 5 blast furnace in the ironmaking plant and
RMB1300000000.00 for special steel electric furnace upgrade and reconstruction project RMB700000000.00 for CCPP power generation project RMB150000000.00 for steel plant No. 4-
6 converter environmental protection renovation project) Temporarily supplementing working capital matters was approved on the 14th meeting of the 8th Board of Directors of the company
held on July 28 2020 It was reviewed and approved at the 12th meeting of the 8th Supervisory Committee and the independent directors of the company have issued a clear agreement and the
replenishment of working capital shall not exceed 12 months. The sponsor of the company's public offering of convertible corporate bonds agreed that the company will use idle raised funds to
temporarily supplement working capital and issued the "Guotai Junan Securities Co. Ltd.'s Verification Opinions on the Company's Use of Idle Raised Funds to Temporarily Supplement
Working Capital". As of July 27 2021 the company has returned all the above-mentioned idle raised funds of RMB 4180000000.00 used to temporarily supplement working capital to the
company's special account for raised funds.
2) The public offering of convertible corporate bonds in July 2021 to raise funds to temporarily supplement working capital
The company used idle raised funds of 3030000000.00 yuan (1010000000.00 yuan for the high-grade high magnetic induction non-oriented silicon steel project 150000000.00 yuan for the
No. 8 casting machine project of the steelmaking plant 160000000.00 yuan for the production capacity replacement project of the No. 5 blast furnace in the ironmaking plant and special steel
20Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
electric furnace upgrade and reconstruction project. 1000000000.00 yuan CCPP power generation project 590000000.00 yuan steel plant No. 4-6 converter environmental protection
renovation project 120000000.00 yuan) Temporary replenishment of working capital The nineteenth meeting of the eighth board of directors of the company held on July 28 2021 It was
reviewed and approved at the 17th meeting of the 8th Supervisory Committee and the independent directors of the company have issued a clear agreement and the time for replenishing
working capital should not exceed 12 months.The sponsor of the company's public offering of convertible corporate bonds agreed that the company will use idle raised funds to temporarily supplement working capital and issued the "Guotai
Junan Securities Co. Ltd.'s Verification Opinions on the Company's Use of Idle Raised Funds to Temporarily Supplement Working Capital".As of December 31 2021 the company used the idle funds raised from the public issuance of convertible corporate bonds to temporarily supplement the balance of working capital of RMB
3030000000.00.
3) In July 2022 the funds raised from the public issuance of convertible corporate bonds will be temporarily supplemented with working capital
The company used idle raised funds of 3014000000.00 yuan (1015000000.00 yuan for the high-grade high magnetic induction non-oriented silicon steel project 165000000.00 yuan for the
No. 8 casting machine project of the steel plant and 175000000.00 yuan for the No.Special steel electric furnace upgrading and transformation project 933000000.00 yuan CCPP power
generation project 578000000.00 yuan steelmaking plant No. 4-6 converter environmental protection renovation project 148000000.00 yuan). The matter of temporarily supplementing
working capital was considered 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 issued a clear consent and the replenishment of working capital shall not exceed 12 months.The sponsor of the company's public issuance of
convertible corporate bonds agreed to the company's use of idle raised funds to temporarily replenish working capital and issued the "Guotai Junan Securities Co. Ltd. Verification Opinion on
the Company's Use of Idle Raised Funds to Temporarily Supplement Working Capital". As of December 31 2022 the balance of the company's temporary replenishment of working capital
using idle proceeds from public issuance of convertible corporate bonds was RMB 3014000000.00.
5. Cash management with idle raised funds
The Company does not use idle raised funds for cash management.
6. Use of surplus raised funds
The Company does not use the surplus funds of raised fund investment projects for other raised fund investment projects or non-raised fund investment projects.
7. Use of over-raised funds
There exists no over-raised funds.
8. Purpose and whereabouts of unused raised funds
As of December 31 2022 in addition to the above-mentioned "3.Status of preliminary investment and replacement of raised funds investment projects" "4.Status of temporary replenishment of
working capital with idle raised funds" the company has raised funds. In addition to replacing and temporarily supplementing working capital with idle raised funds the remaining raised funds
are temporarily deposited in a special account for raised funds.
9. Other information on the use of raised funds
There exists no other situations about the use of raised funds of the company.
21Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(2) Fund Raising Commitments
□Applicable □Not applicable
Unit: ten thousand yuan
Whether the
Total Amount Cumulative Investment Benefits Has the
item has been Adjusted Item reaches Whether the
Commitment to investment committed invested investment progress by realized project
changed total scheduled expected
projects and over-raised investment during the amount by the the end of the during the feasibility
(including investment availability benefit is
funds of raised reporting end of the period (3) = reporting changed
some (1) date achieved
funds period period (2) (2)/ (1) period significantly
changes)
Commitment to Investment Projects
Cold-rolled high-strength
No 226580 226580 4520.32 197212.39 87.04% -14582.14 No No
steel renovation project
Hot-dip galvanizing
production line project of No 70000 70000 41514.24 59.31% -1797.61 Yes No
the third cold rolling plant
Not
Repay bank loan No 100000 100000 100000 100.00% No
applicable
High grade high magnetic
induction non-oriented Not
No 101620 101620 141 0.14% No
silicon steel engineering applicable
project
Steel Plant No. 8 Casting
No 33500 33500 1300.8 17648.91 52.68% -8801.71 Yes No
Machine Project
No. 5 blast furnace capacity
replacement project in No 96000 96000 1805.68 78499.23 81.77% -8672.7 No No
ironworks
Special Steel Electric No 141600 141600 37182.68 78904.64 55.72% Not No
22Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Furnace Upgrade and applicable
Reconstruction Project
CCPP power generation Not
No 83300 83300 18996.71 40437.02 48.54% No
project applicable
Environmental protection
renovation project of Not
No 19900 19900 3322.17 8045.66 40.43% No
converter No. 4-6 in applicable
steelmaking plant
Not
Repay bank loan No 200000 200000 200000 100.00% No
applicable
Subtotal of Committed
--1072500107250067128.36762403.09-----33854.16----
Investment Projects
Over-raised funds are invested in
None
Total -- 1072500 1072500 67128.36 762403.09 -- -- -33854.16 -- --
Situations and reasons for
not reaching the planned
progress or expected The market environment has undergone major changes and the cold-rolled high-strength steel renovation project and the hot-dip galvanizing production line
benefits by specific projects project of the third cold-rolling plant have basically reached production capacity. The high-grade high magnetic induction non-oriented silicon steel engineering
(including the reason for project is still in the ice-breaking period due to the application of the product market. In order to avoid investment risks the project construction has not yet
choosing "Not applicable" in started in 2022. The company expects to invest RMB 350 million yuan in 2023. The company will pay close attention to the relevant product market."Whether the expected
benefits are achieved")
Status of description of
material changes in project None
feasibility
Status of amount purpose
and progress of use of over- Not applicable
raised funds
23Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Status of changes in
Implementation Locations of
Not applicable
Raised Funds Investment
Projects
A Status of adjustment of the
Implementation Method of
Not applicable
Raised Funds for Investment
Projects
Status of preliminary Applicable
investment and replacement
of raised funds for For details please refer to the situation mentioned in the special report III. (3).investment projects
Status of temporary Applicable
replenishment of working
For details please refer to the special report III. (4).capital with idle raised funds
Reasons and amount for the Not applicable
balance of raised funds in
project implementation
Use and whereabouts of
For details please refer to the special report III. (8)
unused raised funds
Problems or other situations
in the use and disclosure of There is no problem or otherwise.raised funds
24Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(3) Situation for Raised Funds Change Project
□Applicable □Not applicable
During the reporting period the company did not have any changes in the fund raising project.VII. Major Assets and Shares Sold
1. Significant Assets Sold
□Applicable □Not applicable
There was no significant asset sold during the reporting period.
2. 2. Substantial Equity Sold
□Applicable □Not applicable
VIII. Analysis on Main Subsidiaries and Share Participating Companies
□Applicable □Not applicable
Main subsidiaries and the joint-stock companies influencing over 10% net profit of the Company
Unit: yuan
Company Company Main Registered
Name type business capital Total assets Net assets
Operating Operating
income profit Net Profit
Bengang
Puxiang
Cool Processing
Rolling Subsidiary and sales 1920000000.00 4595704365.54 2382481844.84 4253071574.21 96776624.18 69847227.23
Steel of steel
Sheet Co.Ltd.Acquirement and disposal of subsidiaries during the reporting period
□Applicable □Not applicable
Ways of acquiring and disposing of Impact on overall production operations
Company Name
subsidiaries during the reporting period and performance
Non-important share participating
Zhejiang Jingrui Steel Processing Co. subsidiaries have no significant impact
Equity transfer
Ltd. on the company's production operation
and performance.Illustration of main joint-stock companies
None.IX. Structure Entities Controlled by the Company
□Applicable □Not applicable
25Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
X. Risks Faced by the Company and Countermeasures
1. Macroeconomic policy risks
In 2023 the Russia-Uzbekistan war and geopolitical conflicts will continue the century-old changes will accelerate the Federal
Reserve will continue to raise interest rates and the recovery of the world economy will be weak. The foundation for my country's
economic recovery is not yet solid. Economic development is facing triple pressures of demand contraction supply shocks and
weakening expectations. The external export environment is severe and the downward pressure on the economy is increasing. The
downstream demand of the domestic iron and steel industry is generally weak and the market pattern of supply exceeding demand
has not changed fundamentally. The optimization and adjustment of domestic iron and steel layout is accelerating the strategic
restructuring of iron and steel enterprises continues to advance and changes in domestic fiscal and financial policies to stabilize
growth will bring many uncertain factors to the development of the iron and steel industry.Countermeasures: First strengthen research on national fiscal financial and industrial policies fully accurately and
comprehensively implement new development concepts and continuously improve the forward-looking and effectiveness of
policy research. The second is to seize the opportunities for macro policy adjustment and development optimize and adjust
strategic planning in a timely manner focus on key areas such as safety greenness efficiency intelligence and high-quality
products adhere to extreme thinking deepen lean operations accelerate the conversion of old and new growth drivers and
actively promote green and low-carbon transformation and upgrading create more comparative advantages continuously improve
core competitiveness and strive to achieve high-quality development of the enterprise.
2. Raw material and fuel prices and supply risks
The monopoly situation of global iron ore supply is difficult to change in the short term domestic iron ore demand is highly
dependent on foreign countries and strategic resources such as coal and coke have obvious shortcomings. The implementation
time of the "Cornerstone Plan" of my country's steel industry is short and the independent controllability of the supply chain of the
steel industry chain is relatively weak. The financial attributes of black ore and coal coke resources have been enhanced and
domestic and foreign hot money speculation is frequent. Energy conservation and emission reduction policies continue to deepen
the production capacity of upstream coal coke enterprises is limited various internal and external factors lead to frequent
fluctuations in the price of raw materials and fuels and the risk of raw materials and fuel prices and security supply increases.Countermeasures: First adhere to the "predictive" business procurement concept strengthen the analysis and judgment of raw
material supply and market demand build a raw material procurement model scientifically control the procurement timing and
adjust the procurement strategy in a timely manner. The second is to strengthen strategic cooperation in the supply of raw
materials and fuels consolidate and expand domestic raw and fuel procurement channels deeply aggregate raw and fuel resources
accelerate the formation of a domestic and foreign dual-cycle supply chain security guarantee pattern and enhance the price
advantage of large-scale procurement. The third is to optimize the structure of production furnace materials adjust the
procurement structure of raw materials and fuels reasonably control the inventory of raw materials and fuels effectively reduce
the adverse effects caused by fluctuations in the prices of raw materials and fuels and minimize the cost of raw materials and fuels.
3. Environmental protection risks
With the continuous strengthening of the country's environmental protection and the promotion of "carbon peaking and carbon
neutrality" the environmental protection department continues to increase the supervision of pollution control in the iron and steel
26Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
industry and the investment in environmental protection and operating costs of iron and steel enterprises have increased and iron
and steel enterprises will face increasing pressure on environmental protection and governance.Countermeasures: The first is to establish a sound production and operation system for green and low-carbon circular development
that is to further improve resource and energy utilization efficiency promote ultra-low emission transformation and
comprehensive pollutant management and continue to reduce carbon emission intensity through equipment energy-saving and
environmental protection upgrades and advanced technology promotion and application. The second is to actively carry out
product ecological design and life cycle assessment to create green and low-carbon products. The third is to strengthen the
operation and maintenance and standardized operation control of existing environmental protection equipment and facilities
focusing on strengthening the monitoring of air pollution sources. The fourth is to build a "AAA" scenic garden-style factory as a
starting point and strive to improve the environment of the factory area.
27Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Section IV Corporate Governance
I. Annual General Meeting and Extraordinary Meetings of Shareholders in the Reporting
Period
1. Annual General Meeting of Shareholders During the Reporting Period
Sessions Type Investor participation ratio Meeting Date Date of disclosure Meeting Decision
Announcement on
First Extraordinary Resolutions of
General Meeting Extraordinary First Extraordinary 76.81% March 16 2023 March 17 2023
of Shareholders in General Meeting Shareholders
2023 General Meeting
of 2023
Announcement on
Annual General Resolutions of the
Meeting of Annual General
Shareholders in Meeting 76.73% April 27 2023 April 28 2023 2022 Annual
2022 General Meeting
of Shareholders
Announcement on
Second Resolutions of
Extraordinary Second
General Meeting Extraordinary General Meeting 76.74% May 18 2023 May 19 2023 Extraordinary
of Shareholders in Shareholders
2023 General Meeting
of 2023
2. Request for Extraordinary General Meeting by Preferred Stockholders Whose Voting Rights
Restore
□Applicable □Not applicable
II. Changes in Directors Supervisors and Senior Management of the Company
□Applicable □Not applicable
Name Position Office status Date Reasons
Huo Gang Chairman Resigned February 28 2023 Voluntary resignation
Han Mei Director Resigned February 28 2023 Voluntary resignation
Wang Shiyou Director Deputy General Manager Resigned April 27 2023 Voluntary resignation
Bai Yufei Supervisor Resigned April 27 2023 Voluntary resignation
Chief Financial
Jiang Xiaoyu Officer Secretary of Dismissed February 28 2023 Job changes
the Board of Directors
Li Yan Chairman Elected March 16 2023 Elected
Wang Donghui Director Elected March 16 2023 Elected
Huang Zuowei Director Deputy General Manager Elected May 18 2023 Elected
Lu Xuezhu Supervisor Elected May 18 2023 Elected
Chief Financial
Zheng Zhengli OfficerSecretary of the Appointed February 28 2023 Appointment
Board of Directors
28Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
III. Profit Distribution and Capital Reserve Conversion
□Applicable □Not applicable
There exists no plan for the company to distribute cash dividends bonus shares or convert capital reserve into share capital.IV. Implementation of Company Equity Incentive Plans Employee Stock Ownership Plans
or Other Employee Incentives
□Applicable □Not applicable
During the reporting period the company had no equity incentive plan employee stock ownership plan or other employee
incentive measures and their implementation.
29Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Section V Environmental and Social Responsibility
I. Major Environmental Issues
Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the environmental
protection department
□Yes □No
Environmental protection related policies and industry standards
The company implements the "Environmental Protection Law of the People's Republic of China" "Environmental Impact
Assessment Law of the People's Republic of China" "Water Pollution Prevention and Control Law of the People's Republic of
China" "Air Pollution Prevention and Control Law of the People's Republic of China" "Soil Pollution Prevention and Control
Law of the People's Republic of China" "The Law of the People's Republic of China on the Prevention and Control of
Environmental Pollution by Solid Waste" and other relevant ecological and environmental policies and implement the "Discharge
Standards for Water Pollutants in the Iron and Steel Industry" (GB13456-2012) and "Discharge Standards for Pollutants in the
Coking Chemical Industry" (GB 16171-2012) "Emission Standards of Air Pollutants for Sintering and Sintering Pellets in Iron
and Steel Industry" (GB28662-2012) "Emission Standards of Air Pollutants for Ironmaking Industry" (GB28663-2012)
"Emission Standards for Air Pollutants for Steel Rolling Industry" (GB28665-2012 ) "Emission Standards of Air Pollutants for
Thermal Power Plants" (GB13223-2011) and other related industry standards.Environmental Protection Administrative Licensing
The company involves 14 pollutant discharge units 11 of which are key pollutant discharge units. The license was obtained for the
first time in December 2018. In December 2021 the license management requirements were extended to December 2026. In 2022
the modification of 2 companies will be postponed to December 2027 and in 2023 the modification of 1 company will be
postponed to July 2028; 3 units are subject to registration management and they will obtain the receipt of registration of pollutant
discharge from stationary pollution sources in March 2020 valid until 2025. All units strictly implement the standard and stable
operation of environmental protection facilities and strictly control the discharge of pollutants. Every year the plates company
discharges pollutants within the scope of the permit. All units submit quarterly execution reports and annual reports online as
required.
30Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Industry discharge standards and the specific situation of pollutant discharge involved in production and operation activities
Names of
Company Types of main Pollutant
main Number Approved
or pollutants and Emission Emission Emission Total Excessive
pollutants and of Distribution of outlets Total
subsidiary characteristic method concentration/intensity Standards emissions emissions
characteristic outlets Emissions
name pollutants Executed
pollutants
Bengang Not
Steel Wastewater Continuous Energy General Plant Sewage COD 1 5.83 50 8.75 tons approved by None
Plates Co. pollutants Treatment Plant the
Ltd. government
Bengang Not None
Steel Wastewater Ammonia Continuous Energy General Plant Sewage 1 0.35 8 0.54 tons approved by
Plates Co. pollutants nitrogen Treatment Plant the
Ltd. government
Raw material dumper transfer None
station receiving tank pre-
batching; iron-making casting
yard furnace roof fuel
solvent granulation ore coke
tank sintering head dust Raw material
removal desulfurization 25; sintering
machine tail dust removal; iron 10-50; iron
and steel water pretreatment Raw material <20; making 25;
north-south pouring station sintering 8-26; iron steel making
Bengang
Continuous tundish primary dust removal making 8-9; steel 20-50; special Smok: Not
Steel Exhaust 580;
Particulates and 191 secondary dust removal making 3-20; special steel 20; approved by
Plates Co. pollutants refining dust removal; special steel 2-15; coking 4-30; coking 30; dust： the
intermittent
Ltd. steel electric furnace refining power generation 3-8; power 5875 government
furnace; coking coal addition cold rolling 3-20; hot generation 5-
coke pushing dry quenching rolling 5-18. 30; cold
chimney desulfurization and rolling 20-30;
denitrification; power boiler hot rolling 20-
dust removal desulfurization 30.and denitrification; cold
rolling acid regeneration
pickling straightening
welding leveling annealing
roasting; hot rolling furnace.
31Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Sintering head None
200; coke
Bengang Sintering head; coke oven Sintering head 48-174; oven 30-100;
Continuous chimney; power generation coke oven 24-48; power Not Steel Exhaust
Sulfur dioxide and 65 boiler desulfurization; cold power generation 3-55; generation 1666 tons approved by
Plates Co. pollutants
intermittent rolling roasting and annealing; cold rolling 24-95; hot 100-200 cold
the
Ltd. hot rolling heating furnace. rolling 50-125. rolling 150; government
hot rolling
150.
Sintering head None
Sintering head 110- 300; coking
Bengang Sintering head; coking chimney 150;
Continuous
Steel Exhaust Nitrogen chimney; power generation
150; coking chimney
99-148; power power
Not
and 58 boiler; cold rolling roasting approved by
Plates Co. pollutants oxides annealing; hot rolling heating generation 10-103; cold
generation 4394 tons
intermittent rolling 50-150; hot 100-200; cold
the
Ltd. furnace. rolling 80-120. rolling 200;
government
hot rolling
300.
32Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Treatment of Pollutants
2023 involves 32 ultra-low emission items under construction 4 of which have been completed involving the third dust removal
of steelmaking 1#2#3#7# converters the upgrading and transformation of Pohang acid mist purification system and the upgrading
and transformation of three cooling acid mist purification systems 1. Upgrading and transformation of the acid mist purification
system for cold silicon steel; the remaining 25 projects are under construction and 3 projects are being tendered. After the
construction of the ultra-low emission project is completed by the end of 2023 all the main discharge outlets and general
discharge outlet treatment facilities of the panel company will meet the requirements of the ultra-low emission standard. The
pollution prevention and control facilities of the 23 ultra-low emission projects that have been completed so far are in stable
operation and meet the requirements of ultra-low emission standards. In the first half of 2023 the total amount of pollutant
emissions will be reduced by 7.94% year-on-year.Emergency plan for environmental emergencies
The company and its 14 affiliated units strictly follow the "Emergency Response Law of the People's Republic of China" "Notice
on Printing and Distributing the "Guidelines for Risk Assessment of Environmental Emergencies for Enterprises (Trial)" the
current laws and regulations such as the "Administrative Measures for the Recordation of Emergency Plans for Environmental
Emergencies in Enterprises and Institutions (Trial)" carry out environmental emergency management work and the revision of
emergency plans for environmental emergencies has been completed. The risk assessment and emergency resource investigation
work has been carried out again and the assessment and filing work have been completed according to the management
requirements of the Municipal Bureau. At the same time each unit of the plate company formulates a drill plan according to the
plan and carries out the corresponding plan drill.Investment in environmental governance and protection and the payment of environmental protection tax
In the first half of 2023 the operating cost of environmental protection facilities will be 645 million yuan the investment in
environmental governance and protection will be 426 million yuan and the environmental protection tax will be 17.97 million
yuan.Environmental self-monitoring program
During the reporting period manual monitoring of pollution source monitoring points: 250 flue gas monitoring points 13 waste
water monitoring points 13 factory boundary noise points 15 atmospheric dust reduction points 195 flue gas organized
monitoring points there are 55 flue gas unorganized monitoring points which are divided into weekly monthly quarterly half-
yearly and annual frequency monitoring according to the monitoring plan and the routine monitoring tasks of atmospheric dust
fall have been completed and a total of 90 monitoring data have been obtained in half a year; completed the routine monitoring
tasks of atmospheric unorganized and organized flue gas and obtained a total of 1301 monitoring data in half a year; 208
monitoring data were obtained for plant boundary noise monitoring; 1616 monitoring data were obtained for wastewater
monitoring and monthly quarterly and annual monitoring reports were formed.During the reporting period automatic monitoring of pollution source monitoring points: 64 organized monitoring points for flue
gas and 2 monitoring points for waste water realizing continuous automatic monitoring.
33Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Administrative penalties for environmental issues during the reporting period
Company or Influence on the
subsidiary Reason for Violations Penalty production and
name punishment result operation of
The company's rectification measures
listed companies
The rectification has been completed. 1. Strictly implement
management responsibilities strictly control the entry gate and strictly
control the entry of super-sized scrap steel with grease and rubber
products that pollute the environment. During the cutting operation the
Scrap steel pipes with rust and impurities were on-site personnel strictly select and confirm the scrap steel that may
Bengang Unorganized cut in the open air at the No. 3 site of the scrap A fine of cause environmental pollution shall be stored separately and shall not be
Steel Plates Emissions steel factory resulting in unorganized emission RMB None processed. 2. Rolls slag lumps and waste coils recovered internally are
Co. Ltd. Problem of smoke and dust and polluting the 80000 processed in the cutting room of the dust collector in our factory; cut
environment. and process the pure steel scrap with low dust such as middle plate and
tail roll recovered by internal production at the existing site; the non-
production recycled and engineering maintenance large scrap steel will
be processed by the scrap producer and handed over to the scrap steel
factory.Materials that are prone to dust generation in the
raw material plant in the Coking Dongfeng plant
Bengang Unorganized A fine of
area of the Ironmaking General Plant are stacked The rectification has been completed. Make immediate changes and
Steel Plates Emissions RMB None
in the open air and no effective covering implement cover-ups.Co. Ltd. Problem 30000
measures have been taken to prevent dust
generation.The smoke and dust overflowed from the outlet
of the 8# and 9# coke screen dust collectors in The rectification has been completed. Rectification measures: Use the
Bengang Unorganized A fine of
the Coking Branch Plant of the Ironmaking ultra-low emission transformation of dry quenching dust removal
Steel Plates Emissions RMB None
General Plant resulting in unorganized discharge scraper to improve the old after replacing the scraper discharge ash on
Co. Ltd. Problem 60000
of smoke and dust and polluting the time to avoid the occurrence of soot spillover.environment.The rectification has been completed. The General Iron Works actively
The 360 sintering desulfurization outlet online organized ice removal work. Due to the cold weather and safety
facility in the third sintering operation area of the considerations the ice removal work was completed on the morning of
Bengang A fine of
Online Facility iron-making sub-plant of the Iron-making January 13 and manual monitoring was carried out in the afternoon of
Steel Plates RMB None
Failure Issues General Plant failed. During the failure period the same day. The monitoring results showed that the pollutant emission
Co. Ltd. 60000
manual monitoring was not carried out as concentrations were all within the limit and the emissions met the
required resulting in the loss of some data. standards. Currently the 360 desulfurization outlet online equipment is
operating normally.
34Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
4 dry quenching and dust removal and 4 coke oven desulfurization and
denitrification treatment facilities are under construction in the coking
branch plant. According to the regulations on discharge permit
Law enforcement officers from the Ecological
management if no online facilities are installed only the pollution
Bureau of Benxi City inspected the 2022
Bengang Pollutant A fine of production coefficient can be used for accounting so the total amount of
emissions of the Coking Branch of the
Steel Plates Discharge RMB None particulate matter exceeds the standard. At present the construction and
Ironmaking General Plant and found that the
Co. Ltd. Issues 300000 installation of coke oven desulfurization and denitrification treatment
actual emissions of particulate matter exceeded
facilities and dry quenching desulfurization treatment facilities are
the amount.under way and the transformation will be completed in December 2023.After the transformation the online method is used to calculate the
emissions.
35Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Other environmental information that should be disclosed
None.Measures and effects taken to reduce its carbon emissions during the reporting period
□Applicable □Not applicable
1. From January to June the comprehensive energy consumption per ton of steel was 546kgce which was 19.5kgce lower than the
plan and 41.6kgce lower than the same period last year. The main work is that the iron-to-steel ratio is 0.887 which is 0.03 lower
than the plan and the comprehensive energy consumption is reduced by 11kgce; the second is to strengthen the economic
operation of each main production process improve the recovery of residual energy and the energy consumption of sintering
coking blast furnace steelmaking and other processes have all completed the plan and the year-on-year reductions have been
different.
2. According to the maintenance situation of each production line and the gas balance plan adjust the gas consumption of users
and boilers according to the time node and at the same time give full play to the peak-shaving ability of the gas cabinet to reduce
the gas emission index. From January to June the blast furnace gas release rate was 0.27% 0.4% lower than the plan and 0.45%
year-on-year; the coke oven gas release rate was 0.14% 0.31% lower than the plan and 0.35% year-on-year.
3. Through adjusting the maintenance time of gas furnaces and adjusting converter gas recovery parameters the recovery of
converter gas per ton of steel was 135.3m3 from January to June an increase of 3.3m3 compared with the plan and 9.5m3 year-on-
year.
4. Each process strictly implements the economic operation plan and strengthens the management of daily electricity consumption.
In the first half of the year the power consumption per ton of steel was 500kWh which was 28.5kWh lower than the plan and
27kWh lower than the same period last year.
5. Take measures such as strictly controlling the amount of externally supplied steam and reducing the pressure of the steam pipe
network. In the first half of the year thermal coal consumption was 62900 tons a decrease of 42100 tons compared with the plan
and a year-on-year decrease of 42500 tons.
6. In the first half of 2023 4 energy-saving and carbon-reduction projects will be started including the frequency conversion
transformation of the primary dust removal fan of the converter the boosting transformation of the 1# CDQ boiler the
transformation of the Xing'an raw material district heating method and the heating transformation of a new high-temperature slag
flushing water plate.The annual profit is 26.79 million yuan and the annual standard coal is 26800 tons.Other environmental related information
None.II. Social Responsibility Situation
1. The panel company set up a voluntary service detachment to recruit volunteers to participate in social public welfare
undertakings and city creation activities assist in traffic assistance at the intersection of Shifu Road and General Hospital prevent
citizens from crossing the intersection and ensure the safety of personnel.
36Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
2. Organize volunteers from the plate company to participate in the ecological and environmental protection voluntary service
activity of "Protecting the Mother River and Co-creating an Eco-City" carried out by the Benxi Iron and Steel Volunteer Service
Team picking up garbage along the Taizi River.
3. The assistance of needy workers is effectively connected with the improvement of the quality of life of workers and the needy
workers are identified according to the review and identification standards of various needy workers and the working principle of
"doing everything that should be built helping as much as possible dynamic management and precise policy implementation" is
strictly implemented establish a long-term mechanism for doing practical and good things for employees and effectively solve
problems for employees in difficulties.
37Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Section VI Important Events
I. Commitments made by the company’s actual controller shareholders related parties acquirers and the company and other
related parties that have been fulfilled during the reporting period and that have not been fulfilled by the end of the reporting
period
□Applicable □Not applicable
Commitments Commitment Type of party commitment Contents
Commitmen Commitme
t time nt period Performance
In order to maintain the independence of Bengang Steel Ansteel Group undertakes
the following: 1. Ansteel Group guarantees to keep separate from Bengang Steel in
terms of assets personnel finance organization and business and strictly abides
by the China Securities Regulatory Commission's regulations on the independence
Commitment made in of listed companies It does not use its controlling position to interfere with the
the acquisition report Ansteel Group Other standard operation of Bengang Steel interfere with Bengang Steel's business
or the equity change commitment decisions or damage the legitimate rights and interests of Bengang Steel and other
August Long term Under normal
Co. Ltd.report shareholders. Ansteel Group and other subsidiaries controlled by it promise not to
202021 fulfillment
illegally occupy the funds of Bengang Plate and its controlled subsidiaries in any
way. 2. The above commitments will continue to be effective during the period
when Ansteel Group has control over Bengang Steel Sheets. If Ansteel Group fails
to fulfill the above-mentioned commitments and causes losses to Bengang Steel
Sheets Ansteel Group will bear the corresponding liability for compensation.In order to avoid horizontal competition matters Ansteel Group undertakes the
following: (1) In view of the overlapping business between Ansteel Group and
Bengang Steel after the completion of the acquisition according to the
requirements of existing laws regulations and relevant policies Ansteel Group will
issue a letter of commitment from this letter of commitment. Within 5 years from
the date of issue and strive to use a shorter time in accordance with the
Commitment made in requirements of the relevant securities regulatory authorities under the premise of
the acquisition report Ansteel Group Other complying with the applicable laws and regulations and relevant regulatory rules at
commitment that time in order to facilitate the development of Bengang Steel Sheets and
August Long term Under normal
or the equity change Co. Ltd. safeguard the interests of shareholders especially It is the principle of the interests 202021 fulfillment
report of small and medium shareholders and comprehensively uses various methods
such as asset restructuring business adjustment and entrusted management to
steadily promote the integration of relevant businesses to solve the problem of
horizontal competition. The aforesaid solutions include but are not limited to: 1)
Asset reorganization: purchase assets asset replacement asset transfer or other
feasible reorganization methods in different ways permitted by relevant laws and
regulations such as cash consideration or issue share consideration and gradually
38Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
reorganize Anshan Iron and Steel Group and Benxi Iron and Steel Group. Sort out
and reorganize the assets of the overlapping parts of the business of the sheet metal
to eliminate the overlapping of some businesses; 2) Business adjustment: Sort out
the business boundaries and try our best to achieve differentiated operations such
as through asset transactions business division and other different methods.Business distinction including but not limited to business composition product
grade application field and customer groups etc.; 3) Entrusted management: by
signing an entrustment agreement one party will make decisions related to the
operation of some related assets with overlapping businesses 4) Other feasible
solutions within the scope permitted by laws regulations and relevant policies. The
implementation of the above-mentioned solutions is premised on performing the
necessary deliberation procedures for listed companies and the approval
procedures of securities regulatory authorities and relevant competent authorities in
accordance with relevant laws and regulations. (2) Anshan Iron and Steel Group
has not yet formulated a specific implementation plan and time arrangement for
solving the problem of partial business overlap between Anshan Iron and Steel
Group and Bengang Steel. (3) In addition to the above circumstances when
Ansteel Group or other subsidiaries obtain business opportunities that may
compete with the business of Bengang Steel Ansteel Group will do its best to give
Bengang Steel the priority to develop such opportunities and The right of first
refusal to purchase the project makes the price of the relevant transaction fair and
reasonable and will be based on the business practices followed in normal
commercial transactions with independent third parties; (4) Ansteel Group
guarantees that it will strictly abide by laws regulations and According to the
Articles of Association of Bengang Plate Co. Ltd. and its relevant management
system the company shall not use its position as an indirect controlling
shareholder of Bengang Plate to seek illegitimate interests thereby impairing the
rights and interests of other shareholders of Bengang Plate; During the period of
control over the steel sheet the above commitments made by Ansteel Group are all
valid. In the event of violation of the above commitments resulting in damage to
the rights and interests of Bengang Steel Ansteel Group is willing to assume the
corresponding liability for damages.In order to standardize and reduce the related transactions between Ansteel Group
and listed companies Ansteel Group has made commitments: 1. Ansteel Group
will ensure that Bengang Steel’s business is independent its assets are complete
and it has independent and complete production supply sales and other auxiliary
facilities. system. 2. Ansteel Group and other enterprises controlled by Ansteel
Commitment made in Group will not take advantage of the control over Bengang Steel Sheets to seek
the acquisition report Ansteel Group Other preferential transactions with Bengang Steel Sheets and its subordinate enterprises. August Under normal
or the equity change Co. Ltd. commitment 3. Ansteel Group and other enterprises controlled by Ansteel Group will avoid and 202021
Long term fulfillment
report reduce unnecessary transactions with Bengang Steel Sheets and its subordinate
enterprises. If there is a truly necessary and unavoidable transaction Ansteel Group
and other enterprises controlled by Ansteel Group will sign an agreement with
Bengang Steel Sheets and its subordinate enterprises in accordance with the
principles of fairness fairness and compensation for equal value perform legal
procedures and will comply with the law. According to the requirements of
39Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
relevant laws regulations and normative documents and the "Articles of
Association of Bengang Plate Co. Ltd." perform information disclosure
obligations and perform relevant internal decision-making and approval procedures
in accordance with the law and ensure that no price is unfair compared with
market prices. conditions and conduct transactions with Bengang Steel and its
subordinate enterprises and do not use such transactions to engage in any behavior
that damages the legitimate rights and interests of Bengang Steel and other
shareholders of Bengang Steel. 4. In the event of violation of the above
commitments resulting in damage to the legitimate rights and interests of Bengang
Steel Ansteel Group will compensate for the losses caused to Bengang according
to law.According to the relevant regulations of the China Securities Regulatory
Commission all directors and senior management of the Company have made the
following commitments to the Company’s fulfillment of the diluted immediate
return measures: 1. I promise to perform my duties faithfully and diligently and
safeguard the legitimate rights and interests of the Company and all shareholders.
2. I promise not to deliver benefits to other units or individuals without
compensation or under unfair conditions nor to use other means to damage the
Company's interests. 3. I promise to restrict the position-related consumption
behavior of company directors and senior management personnel. 4. I promise not
to use the Company’s assets to do investment and consumption activities that are
not related to the performance of my duties. 5. Within the scope of my
responsibilities and authority I promise to make every effort to promote the
company's board of directors or the remuneration system established by the
Company remuneration and appraisal committee to be linked to the implementation of the
Commitment made directors company's compensation measures and vote in favor of the relevant proposals
during initial public senior Other reviewed by the company's board of directors and general meeting (If I have voting
offering or management/ commitment rights). 6. If the company intends to implement equity incentives I promise to
May 22 Long term Under normal
refinancing Controlling within my own responsibilities and jurisdiction make every effort to promote the
2019 fulfillment
shareholders Company’s proposed equity incentive exercise conditions to be linked to the Company’s implementation of the return measures and to review the Company’s
board of directors and shareholders’ general meetings and vote in favor of the
relevant proposals reviewed by the company's board of directors and general
meeting (If I have voting rights). 7. If the future issuance of this commitment and
the implementation of the Company’s public issuance of convertible corporate
bonds are completed if the China Securities Regulatory Commission makes other
new regulatory provisions on the measures for filling returns and their
commitments and the above commitments cannot meet the requirements of the
China Securities Regulatory Commission When other regulations are stipulated a
commitment will be issued in accordance with the latest regulations of the China
Securities Regulatory Commission. The company's controlling shareholder Benxi
Steel and Iron (Group) Co. Ltd. promised not to interfere with the company's
operation and management activities beyond its authority and not to infringe on the
Company's interests.Benxi Steel & Other The sales companies of Bengang International Trade Co. Ltd. and Bengang Steel July Under normal
Commitment made Iron (Group) Commitment plates in the same region guarantee independent personnel independent business 242019 Long term fulfillment
40Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
during initial public Co. Ltd. and independent finance and independent assets and are guaranteed not to be in the
offering or Bengang same registration place or in the same office; The filing of foreign economic and
refinancing Group Co. trade operators taking into account the need to gradually improve the qualification Ltd. certification of raw material suppliers customs import and export qualification
certification etc. In the short term the actual conditions and capabilities for
independent import and export business are still lacking. In order to ensure the
normal business development of Benxi Steel Plate the Group agrees that within
the period of not more than 5 years from the date of issuance of this commitment
the main import and export business of Benxi Steel Plate will still be represented
by Bengang International Trade until Bengang Steel Plates can be independently
developed Import and export business and during this period Bengang
International Trade will provide the necessary support for the establishment and
improvement of Bengang's import and export business. In addition the sales
company under Bengang International Trade is only responsible for selling the
products of Beiying Iron and Steel Group and never sells third-party steel
products. 3. The three sales companies under the Group Shanghai Bengang Iron
and Steel Sales Co. Ltd. Shanghai Bengang Iron and Steel Materials Co. Ltd.and Guangzhou Free Trade Zone Bengang Sales Co. Ltd. are currently no longer
actually engaged in any business activities as follows: (1 ) Shanghai Bengang Iron
& Steel Sales Co. Ltd. filed for bankruptcy in 2014 and the Shanghai Changning
District People's Court issued an announcement to appoint Guohao Lawyer
(Shanghai) Office as the bankruptcy administrator. After communication with the
bankruptcy administrator it is expected that the bankruptcy and liquidation of
Shanghai Bengang Iron and Steel Sales Co. Ltd. will be completed by the end of
2020. Upon completion of the aforementioned bankruptcy liquidation procedures
the relevant procedures for cancellation of Shanghai Bengang Iron and Steel Sales
Co. Ltd. will be handled immediately. (2) Shanghai Bengang Iron & Steel
Materials Co. Ltd. is a holding subsidiary of Shanghai Bengang Iron & Steel Sales
Co. Ltd. and its business license has been revoked. As the shareholder Shanghai
Bengang Iron & Steel Sales Co. Ltd. is in the process of bankruptcy and
liquidation Shanghai Bengang Iron & Steel Materials Co. Ltd. was unable to
convene a shareholders' meeting to cancel the company and establish a liquidation
group according to law. Therefore the cancellation has not yet been completed.After the aforementioned bankruptcy and liquidation procedures of Shanghai
Bengang Iron & Steel Sales Co. Ltd. are completed the relevant procedures for
cancellation of Shanghai Bengang Iron & Steel Materials Co. Ltd. will be
processed immediately. (3) Guangzhou Free Trade Zone Bengang Sales Co. Ltd.has a contract arrears dispute with Jiedong County Trading Corporation. According
to the Civil Judgment ((1999) Ben Jing No. 116) Guangzhou Free Trade Zone
Bengang Sales Co. Ltd. applied to the court to seal 62 properties under the name
of Jiedong County Trading Corporation. However due to serious local protection
property rights and other factors the content of the judgment has not been
enforceable. Later after applying again from Guangzhou Free Trade Zone Bengang
Sales Co. Ltd. the Intermediate People's Court of Benxi City Liaoning Province
issued an execution ruling again and 62 properties of Jiedong County Trading
Corporation were re-sealed. As of February 4 2022. Except for participating in the
41Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
litigation activities for the purpose of realizing creditor's rights Guangzhou Free
Trade Zone Bengang Sales Co. Ltd has not carried out other business activities.After the litigation is completed the relevant procedures for the cancellation of
Guangzhou Free Trade Zone Bengang Sales Co. Ltd. will be handled immediately.The Group's horizontal competition with Benxi Steel Plates and the measures and
commitments to avoid inter-industry competition 1. During the period when the
Group is the controlling shareholder of Bengang Steel Plates in addition to the
matters listed in Article 1 of this Commitment Letter the Group and other
enterprises controlled by the Group other than Bengang Steel Plates no longer
produce or develop any products that compete or may compete with the products
produced by Bengang Steel Plates and its subsidiaries at home and abroad and do
not directly or indirectly operate any business that competes with Bengang Steel
Plates and its subsidiaries. Businesses that may constitute competition nor are they
involved in investing in any other enterprise that competes with or may compete
with products or businesses produced by Bengang Steel Plates and its subsidiaries.
2. If Bengang Steel Plates and its subsidiaries further expand their business scope
the Group and other enterprises controlled by the Group will not compete with the
Bengang expanded business of Bengang Steel Plates and its subsidiaries; they may compete
Commitment made Group Co. with Bengang Steel Plates and its subsidiaries If the company's expanded business
during initial public Ltd. & Benxi Other produces competition it will withdraw from the competition with Bengang Steel July Normal Under normal
offering or Steel & Iron Commitment Plates as follows: (1) Stop business that may or may compete with Bengang Steel 242019 execution fulfillment
refinancing (Group) Co. Plates and its subsidiaries; (2) Will compete The business is incorporated into
Ltd. Bengang Steel Plates and its subsidiaries in a legal and compliant manner; (3)
Competitive business is transferred to unrelated third parties. 3. If the Group has
any business opportunities to engage in or participate in the competition with
Bengang Steel Plates’ operations the Group shall immediately notify Bengang
Steel Plates of the above commercial opportunities. Within a reasonable period
specified in the notice Bengang Steel Plates If an affirmative answer is made to
take advantage of the business opportunity the Group will endeavor to give the
business opportunity to Bengang Steel Plates on terms not less than that 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
compensate for all direct or indirect losses caused to Bengang Steel Plates. 5. This
letter of commitment continues to be effective during the period of the Group as
the controlling shareholder of Bengang Steel Plates and cannot be changed or
withdrawn
In order to regulate and reduce the Company ’s transactions with controlling
shareholders and other related parties and to protect the interests of the Company
Benxi Steel & and small and medium shareholders Benxi Steel and Iron (Group) Co. Ltd. and
Commitment made Iron (Group) Bengang Group Co. Ltd. have issued the following commitments: "Benxi Steel
during initial public Co. Ltd. and Other and Iron (Group) Co. Ltd. and Bengang Group Co. Ltd. (hereinafter collectively July Under normal
offering or Bengang Commitment referred to as the "Group") as a direct controlling shareholder and an indirect 242019
Long term fulfillment
refinancing Group Co. controlling shareholder of Bengang Steel Plates Co. Ltd. (hereinafter referred to as
Ltd. "Bengang Steel Plates") in order to protect the interests of Bengang Steel Plates
and other shareholders of Bengang Steel Plates regulate The Group's related
transaction with Bengang Steel Plates hereby promises: 1. The Group will fully
42Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
respect the independent legal person status of Bengang Steel Plates ensure the
independent operation and independent decision-making of Bengang Steel Plates
ensure the independence of Bengang Steel Plates’ business asset integrity and
personnel Independence and financial independence to avoid and reduce
unnecessary related transactions; the Group will strictly control related transactions
with Bengang Steel Plates and its subsidiaries. 2. The Group and other controlled
companies promise not to use loans or occupy or misappropriate the funds of
Bengang Steel Plates and its subsidiaries to repay debts substitute funds or
otherwise nor We ask Bengang Steel Plates and its subsidiaries to provide illegal
guarantees for the Group and other companies under its control. 3. The Group and
other controlled companies and Bengang Steel Plates will minimize related
transactions. It is indeed necessary and unavoidable to carry out in the related party
transactions strictly implement the decision-making authority decision-making
procedures avoidance system and other contents stipulated in Bengang's "Articles
of Association" and related party transaction decision-making system give full
play to the role of the board of supervisors and independent directors and earnestly
fulfill the obligation of information disclosure To ensure that transactions are
conducted in accordance with the open fair and fair principles of market
transactions and normal commercial terms the Group and other companies under
control will not require or accept Bengang Steel Sheets to give preferential
treatment to third parties in any fair market transaction Conditions to protect other
shareholders of Benxi Steel Plates and the interests of Benxi Steel Plates from
damage. 4. The Group guarantees that the above commitments are continuously
effective and irrevocable as long as Bengang Steel Plates is listed on the domestic
stock exchange and the Group acts as its direct and indirect controlling
shareholder. If any violation of the above commitments occurs the Group therefore
bear all the losses caused to Bengang Steel Plates.Whether
Commitment fulfilled Yes
on time or not
43Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
II. Non-operating Capital Occupation of Listed Companies by Controlling Shareholders
and Other Related Parties
□Applicable □Not applicable
There was no non-operating occupation of funds by the controlling shareholder and related parties.III. Non-compliant External Guarantees
□Applicable □Not applicable
During the reporting period the company had no non-compliant external guarantees.IV. Appointment and Dismissal of Accounting Firms
Whether the semi-annual financial report has been audited
□Yes □No
The semi-annual financial report of the company was not audited.V. Explanation of the Board of Directors and the Board of Supervisors on the "Non-
standard Audit Report" of the Accounting Firm for the Reporting Period
□Applicable □Not applicable
VI. Explanation of the Board of Directors on the Relevant Situation of the "Non-standard
Audit Report" of the Previous Year
□Applicable □Not applicable
VII. Matters Related to Bankruptcy and Reorganization
□Applicable □Not applicable
During the reporting period there were no matters related to bankruptcy and reorganization of the company.VIII. Litigation
Major litigation and arbitration matters
□Applicable □Not applicable
During the reporting period the company had no major lawsuits or arbitrations.Other litigation matters
□Applicable □Not applicable
44Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Basic Litigation Litigation
Amount Whether to Litigation
information (arbitration) (arbitration) Disclosure Disclosure
involved form (arbitration)
on litigation trial results judgment date index
(RMB’0000) provisions progress
(arbitration) and impact execution
Summary of
matters that
the company Because
failed to most of the
Under review
meet the cases were According to
4281.6 No and
disclosure won it did the law
execution
standards for not affect the
major company.litigation
(arbitration)
IX. Punishment and Rectification
□Applicable □Not applicable
X. Integrity Status of the Company and its Controlling Shareholders and Actual
Controllers
□Applicable □Not applicable
45Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
XI. Major Related Party Transactions
1. Related Party Transactions Relevant to Ordinary Operations
□Applicable □Not applicable
The Whethe
Content of Price of Proport approved r Means of Availabl
R e l a t i o n s h T y p e o f r e lated
Pricing related Amount of ion of trading exceed payment e market Index of
Related principle of related party the of related price of Date of
parties ip
related party party party
transactions transaction related party transacti transactions
similar limit of approve party similar disclosure disclosu
s transactions
transact transactions re
ons (RMB’0000) ions (RMB’000 d transactio transacti
0) limited ns ons (Y/N)
Ansteel Both Procureme Execute
Scrap Purchase of Related
Resources belong to nt of main according December goods/receivi Agreement agreeme 37008.21 1.21% 130000 No Yes 2022-73
(Anshan) Ansteel raw to the 14 2022 ng of services nt price
Co. Ltd. Group materials agreement
Angang Steel
Processing Both Execute Purchase of Receive Related
and belong to according December
Distribution goods/receivi supportive Agreement agreeme 1300 No Yes 2022-73 Ansteel to the 14 2022
(Changchun) ng of services services nt price Group agreement
Co. Ltd.Both Execute
Purchase of Purchasing Related
Ansteel Rope belong to according December
Co. Ltd. goods/receivi auxiliary Agreement agreeme 16.95 0.00% 1000 No Yes 2022-73 Ansteel to the 14 2022
ng of services materials nt price
Group agreement
Both Procureme Execute
Purchase of Related
Ansteel Co. belong to nt of main according December
goods/receivi Agreement agreeme 10000 No Yes 2022-73
Ltd. Ansteel raw to the 14 2022
ng of services nt price
Group materials agreement
Ansteel Execute
Group Associate Purchase of Receive Related
Engineering according December of Ansteel goods/receivi supportive Agreement agreeme 19506.93 0.64% 2300 No Yes 2022-73
Technology to the 14 2022 Group ng of services services nt price
Co. Ltd. agreement
46Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Ansteel
Group Both Procureme Execute Purchase of Related
International belong to nt of main according December
Economic goods/receivi Agreement agreeme 30000 No Yes 2022-73 Ansteel raw to the 14 2022
and Trade ng of services nt price Group materials agreement
Co. Ltd.Ansteel Both Procureme Execute
Group Purchase of Related
Mining belong to nt of main according December goods/receivi Agreement agreeme 20040.83 0.65% 50000 No Yes 2022-73
Gongchangli Ansteel raw to the 14 2022 ng of services nt price
ng Co. Ltd. Group materials agreement
Ansteel Both Procureme Execute Purchase of Related
Group belong to nt of main according December
Mining Co. goods/receivi Agreement agreeme 10000 No Yes 2022-73 Ansteel raw to the 14 2022
Ltd. ng of services nt price Group materials agreement
Other Both Execute Purchase of Purchasing Related
subsidiaries belong to according December
of Ansteel goods/receivi auxiliary Agreement agreeme 168.29 0.01% 550 No Yes 2022-73 Ansteel to the 14 2022
Group ng of services materials nt price Group agreement
Other Both Execute Purchase of Receive Related
subsidiaries belong to according December
of Ansteel goods/receivi supportive Agreement agreeme 389.61 0.01% 2100 No Yes 2022-73 Ansteel to the 14 2022
Group ng of services services nt price Group agreement
Ansteel Both Execute Purchase of Receive Related
Group belong to according December
Automation goods/receivi supportive Agreement agreeme 4705.5 0.15% 23000 No Yes 2022-73 Ansteel to the 14 2022
Co. Ltd. ng of services services nt price Group agreement
Ansteel Both Execute Purchase of Receive Related
Construction belong to according December
Group Co. goods/receivi supportive Agreement agreeme 5500 No Yes 2022-73 Ansteel to the 14 2022
Ltd. ng of services services nt price Group agreement
Ansteel
Kurita Both Execute Purchase of Receive Related
(Anshan) belong to according December
Water goods/receivi supportive Agreement agreeme 1200 No Yes 2022-73 Ansteel to the 14 2022
Treatment ng of services services nt price Group agreement
Co. Ltd.
47Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Ansteel
Lianzhong Both Execute Purchase of Purchasing Related
(Guangzhou) belong to according December
Stainless goods/receivi steel Agreement agreeme 16000 No Yes 2022-73 Ansteel to the 14 2022
Steel Co. ng of services products nt price Group agreement
Ltd.Ansteel
Industrial
Group Both Execute
(Anshan) Purchase of Receive Related
Equipment belong to according December goods/receivi supportive Agreement agreeme 325.33 0.01% 1000 No Yes 2022-73
Operation Ansteel to the 14 2022 ng of services services nt price
and Group agreement
Maintenance
Co. Ltd.Ansteel
Industrial Both Execute Purchase of Purchasing Related
Group belong to according December
Metallurgical goods/receivi auxiliary Agreement agreeme 509.71 0.02% 1500 No Yes 2022-73 Ansteel to the 14 2022
Machinery ng of services materials nt price Group agreement
Co. Ltd.North Both Execute Purchase of Receive Related
Hengda belong to according December
Logistics goods/receivi supportive Agreement agreeme 6810.5 0.22% 3000 No Yes 2022-73 Bengang to the 14 2022
Co. Ltd. ng of services services nt price Group agreement
Execute
Bengang Associate Purchase of Purchasing Related
Electric Co. according December of parent goods/receivi auxiliary Agreement agreeme 5759.31 0.19% 20000 No Yes 2022-73
Ltd. to the 14 2022 company ng of services materials nt price
agreement
Bengang
Group Both Execute Purchase of Receive Related
International belong to according December
Economic goods/receivi supportive Agreement agreeme 3246.44 0.11% 20000 No Yes 2022-73 Bengang to the 14 2022
and Trade ng of services services nt price Group agreement
Co. Ltd.Controllin
g Execute
Bengang Purchase of Receive Related
shareholde according December
Group Co. goods/receivi supportive Agreement agreeme 497.27 0.02% 10000 No Yes 2022-73
r of the to the 14 2022
Ltd. ng of services services nt price
parent agreement
company
48Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Benxi Both Procureme Execute
Beiying Iron Purchase of Related
and Steel belong to nt of main according December goods/receivi Agreement agreeme 617788.13 20.13% 1508000 No Yes 2022-73
(Group) Co. Bengang raw to the 14 2022 ng of services nt price
Ltd. Group materials agreement
Benxi Both Execute
Beiying Iron Purchase of Purchasing Related
and Steel belong to according December goods/receivi auxiliary Agreement agreeme 2000 No Yes 2022-73
(Group) Co. Bengang to the 14 2022 ng of services materials nt price
Ltd. Group agreement
Benxi Both Execute
Beiying Iron Purchase of Purchasing Related
and Steel belong to according December goods/receivi Energy Agreement agreeme 32921.6 1.07% 80000 No Yes 2022-73
(Group) Co. Bengang to the 14 2022 ng of services Power nt price
Ltd. Group agreement
Benxi Both Execute
Beiying Iron Purchase of Receive Related
and Steel belong to according December goods/receivi supportive Agreement agreeme 821.5 0.03% 10000 No Yes 2022-73
(Group) Co. Bengang to the 14 2022 ng of services services nt price
Ltd. Group agreement
Benxi Iron
and Steel Execute Same Purchase of Purchasing Related
(Group) according December
Machinery parent goods/receivi auxiliary Agreement agreeme 4127.51 0.13% 12000 No Yes 2022-73 to the 14 2022
Manufacturin company ng of services materials nt price agreement
g Co. Ltd.Benxi Iron
and Steel Execute Same Purchase of Receive Related
(Group) according December
Machinery parent goods/receivi supportive Agreement agreeme 2103.49 0.07% 8000 No Yes 2022-73 to the 14 2022
Manufacturin company ng of services services nt price agreement
g Co. Ltd.Benxi Iron Execute
and Steel Same Purchase of Receive Related
(Group) according December parent goods/receivi supportive Agreement agreeme 25410.48 0.83% 58500 No Yes 2022-73
Construction to the 14 2022 company ng of services services nt price
Co. Ltd. agreement
Benxi Iron Procureme Execute
and Steel Same Purchase of Related
(Group) nt of main according December parent goods/receivi Agreement agreeme 198159.23 6.46% 895000 No Yes 2022-73
Mining Co. raw to the 14 2022 company ng of services nt price
Ltd. materials agreement
49Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Benxi Iron Execute
and Steel Same Purchase of Receive Related
(Group) according December parent goods/receivi supportive Agreement agreeme 5000 No Yes 2022-73
Mining Co. to the 14 2022 company ng of services services nt price
Ltd. agreement
Benxi Iron
and Steel Execute Same Purchase of Receive Related
(Group) according December
Equipment parent goods/receivi supportive Agreement agreeme 18600.42 0.61% 10000 No Yes 2022-73 to the 14 2022
Engineering company ng of services services nt price agreement
Co. Ltd.Benxi Iron
and Steel Procureme Execute Same Purchase of Related
(Group) nt of main according December
Industrial parent goods/receivi Agreement agreeme 1592.38 0.05% 60000 No Yes 2022-73 raw to the 14 2022
Development company ng of services nt price materials agreement
Co. Ltd.Benxi Iron
and Steel Execute Same Purchase of Receive Related
(Group) New according December
Business parent goods/receivi supportive Agreement agreeme 77.43 0.00% 7000 No Yes 2022-73 to the 14 2022
Development company ng of services services nt price agreement
Co. Ltd.Benxi Iron
and Steel Both Execute Purchase of Receive Related
(Group) belong to according December
Information goods/receivi supportive Agreement agreeme 7693.92 0.25% 10000 No Yes 2022-73 Bengang to the 14 2022
Automation ng of services services nt price Group agreement
Co. Ltd.Benxi Iron
and Steel Procureme Execute Same Purchase of Related
(Group) nt of main according December
Metallurgical parent goods/receivi Agreement agreeme 12315.31 0.40% 30000 No Yes 2022-73 raw to the 14 2022
Slag Co. company ng of services nt price materials agreement
Ltd.Benxi Steel Execute
Purchase of Receive Related
and Iron Parent according December
goods/receivi supportive Agreement agreeme 12529.34 0.41% 35000 No Yes 2022-73
(Group) Co. company to the 14 2022
ng of services services nt price
Ltd. agreement
Liaoning Execute
Hengtai Same Purchase of Receive Related
Heavy according December parent goods/receivi supportive Agreement agreeme 3941.52 0.13% 5000 No Yes 2022-73
Machinery to the 14 2022 company ng of services services nt price
Co. Ltd. agreement
50Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Delin Both Execute Purchase of Purchasing Related
Industrial belong to according December
Products Co. goods/receivi auxiliary Agreement agreeme 1513.86 0.05% Yes Yes 2022-73 Ansteel to the 14 2022
Ltd. ng of services materials nt price Group agreement
Liaoning
Hengtong Both Execute Purchase of Purchasing Related
Metallurgical belong to according December
Equipment goods/receivi auxiliary Agreement agreeme 20000 No Yes 2022-73 Bengang to the 14 2022
Manufacturin ng of services materials nt price Group agreement
g Co. Ltd.Liaoning Execute Same Purchase of Receive Related
Metallurgical according December
Technician parent goods/receivi supportive Agreement agreeme 1000 No Yes 2022-73 to the 14 2022
College company ng of services services nt price agreement
Pangang
Group Both Procureme Execute
Purchase of Related
Vanadium belong to nt of main according December
goods/receivi Agreement agreeme 4000 No Yes 2022-73
and Titanium Ansteel raw to the 14 2022
ng of services nt price
Resources Group materials agreement
Co. Ltd.Ansteel
Processing Both Execute Sale of Related
and belong to Sales of according December
Distribution goods/render Agreement agreeme 2757.78 0.09% 8000 No Yes 2022-73 Ansteel goods to the 14 2022
(Dalian) Co. of services nt price Group agreement
Ltd.Ansteel
Processing Both Execute Sale of Related
and belong to Sales of according December
Distribution goods/render Agreement agreeme 200.35 0.01% 4300 No Yes 2022-73 Ansteel goods to the 14 2022
(Changchun) of services nt price Group agreement
Co. Ltd.Ansteel
Processing Both Execute Sale of Related
and belong to Sales of according December
Distribution goods/render Agreement agreeme 1043.34 0.03% 30000 No Yes 2022-73 Ansteel goods to the 14 2022
(Zhengzhou) of services nt price Group agreement
Co. Ltd.Ansteel Both Execute Sale of Related
Distribution belong to Sales of according December
(Hefei) Co. goods/render Agreement agreeme 910.95 0.03% 36000 No Yes 2022-73 Ansteel goods to the 14 2022
Ltd. of services nt price Group agreement
51Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Ansteel Both Execute Sale of Related
Distribution belong to Sales of according December
(Wuhan) Co. goods/render Agreement agreeme 5510.35 0.18% 30000 No Yes 2022-73 Ansteel goods to the 14 2022
Ltd. of services nt price Group agreement
Both Execute
Sale of Related
Ansteel Co. belong to Sales of according December
goods/render Agreement agreeme 9.43 0.00% 10000 No Yes 2022-73
Ltd. Ansteel goods to the 14 2022
of services nt price
Group agreement
Ansteel Both Execute Sale of Related
Chemical belong to Sales of according December
Technology goods/render Agreement agreeme 4685.85 0.15% 150000 No Yes 2022-73 Ansteel goods to the 14 2022
Co. Ltd. of services nt price Group agreement
Ansteel
Group Both Execute Sale of Related
International belong to Sales of according December
Economic goods/render Agreement agreeme 30000 No Yes 2022-73 Ansteel goods to the 14 2022
and Trade of services nt price Group agreement
Co. Ltd.Other Both Execute Sale of Related
subsidiaries belong to Sales of according December
of Ansteel goods/render Agreement agreeme 322.99 0.01% 2200 No Yes 2022-73 Ansteel goods to the 14 2022
Group of services nt price Group agreement
Ansteel Both Execute
Green Sale of Related
Resources belong to Sales of according December goods/render Agreement agreeme 7951.55 0.26% 25000 No Yes 2022-73
Technology Ansteel goods to the 14 2022 of services nt price
Co. Ltd. Group agreement
Ansteel Both Execute Sale of Related
Energy belong to Sales of according December
Technology goods/render Agreement agreeme 777.23 0.03% 2700 No Yes 2022-73 Ansteel goods to the 14 2022
Co. Ltd. of services nt price Group agreement
Ansteel
Shenyang Both Execute
Steel Sale of Related
Processing belong to Sales of according December goods/render Agreement agreeme 3000 No Yes 2022-73
and Ansteel goods to the 14 2022 of services nt price
Distribution Group agreement
Co. Ltd.North Both Execute Sale of Related
Hengda belong to Sales of according December
Logistics goods/render Agreement agreeme 164663.22 5.39% 200000 No Yes 2022-73 Bengang goods to the 14 2022
Co. Ltd. of services nt price Group agreement
52Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Controllin
g Execute
Bengang Sale of Provide Related
shareholde according December
Group Co. goods/render support Agreement agreeme 10.17 0.00% 8000 No Yes 2022-73
r of the to the 14 2022
Ltd. of services services nt price
parent agreement
company
Benxi Both Execute
Beiying Iron Sale of Related
and Steel belong to Sales of according December goods/render Agreement agreeme 13354.7 0.44% 180000 No Yes 2022-73
(Group) Co. Bengang goods to the 14 2022 of services nt price
Ltd. Group agreement
Benxi Iron
and Steel Execute Same Sale of Related
(Group) Sales of according December
Machinery parent goods/render Agreement agreeme 652.2 0.02% 9400 No Yes 2022-73 goods to the 14 2022
Manufacturin company of services nt price agreement
g Co. Ltd.Benxi Iron Execute
and Steel Same Sale of Related
(Group) Sales of according December parent goods/render Agreement agreeme 375.65 0.01% 10000 No Yes 2022-73
Construction goods to the 14 2022 company of services nt price
Co. Ltd. agreement
Benxi Iron
and Steel
(Group) Execute Same Sale of Related
Mining Sales of according December
Yanjiagou parent goods/render Agreement agreeme 201.77 0.01% 1000 No Yes 2022-73 goods to the 14 2022
Limestone company of services nt price agreement
Mine Co.Ltd.Benxi Iron Execute
and Steel Same Sale of Related
(Group) Sales of according December parent goods/render Agreement agreeme 46603.88 1.52% 79000 No Yes 2022-73
Mining Co. goods to the 14 2022 company of services nt price
Ltd. agreement
Benxi Iron Execute
and Steel Same Sale of Provide Related
(Group) according December parent goods/render support Agreement agreeme 39.1 0.00% 1000 No Yes 2022-73
Mining Co. to the 14 2022 company of services services nt price
Ltd. agreement
53Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Benxi Iron
and Steel Execute
(Group) Same Sale of Related
Thermal Sales of according December parent goods/render Agreement agreeme 3456.29 0.11% 10000 No Yes 2022-73
Power goods to the 14 2022 company of services nt price
Development agreement
Co. Ltd.Benxi Iron
and Steel Execute Same Sale of Related
(Group) Sales of according December
Industrial parent goods/render Agreement agreeme 1811.1 0.06% 5000 No Yes 2022-73 goods to the 14 2022
Development company of services nt price agreement
Co. Ltd.Benxi Iron
and Steel Execute Same Sale of Related
(Group) Sales of according December
Metallurgical parent goods/render Agreement agreeme 5233.69 0.17% 15000 No Yes 2022-73 goods to the 14 2022
Slag Co. company of services nt price agreement
Ltd.Benxi Steel Execute
Sale of Related
and Iron Parent Sales of according December
goods/render Agreement agreeme 224.88 0.01% 2000 No Yes 2022-73
(Group) Co. company goods to the 14 2022
of services nt price
Ltd. agreement
Dalian Execute Same Sale of Related
Borolle Steel Sales of according December
Pipe Co. parent goods/render Agreement agreeme 798.23 0.03% 2000 No Yes 2022-73 goods to the 14 2022
Ltd. company of services nt price agreement
Delin Both Execute
Lugang Sale of Related
Supply Chain belong to Sales of according December goods/render Agreement agreeme 16290.14 0.53% 190000 No Yes 2022-73
Service Co. Ansteel goods to the 14 2022 of services nt price
Ltd. Group agreement
Guangzhou Both Execute Sale of Related
Angang Steel belong to Sales of according December
Processing goods/render Agreement agreeme 1013.16 0.03% 3000 No Yes 2022-73 Ansteel goods to the 14 2022
Co. Ltd. of services nt price Group agreement
Liaoning
Hengtong Both Execute Sale of Related
Metallurgical belong to Sales of according December
Equipment goods/render Agreement agreeme 1646.08 0.05% 5000 No Yes 2022-73 Bengang goods to the 14 2022
Manufacturin of services nt price Group agreement
g Co. Ltd.
54Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Panzhong
Yihong Both Execute Sale of Related
Metal belong to Sales of according December
Products goods/render Agreement agreeme 1000 No Yes 2022-73 Ansteel goods to the 14 2022
(Chongqing) of services nt price Group agreement
Co. Ltd.Hold an
Suzhou equity Execute
Longben Sale of Related
Metal interest in Sales of according December goods/render Agreement agreeme 1000 No Yes 2022-73
Materials goods to the 14 2022 the of services nt price
Co. Ltd. agreement
company
Changchun
FAW Angang Both Execute
Steel Sale of Related
Processing belong to Sales of according December goods/render Agreement agreeme 9.99 0.00% 5000 No Yes 2022-73
and Ansteel goods to the 14 2022 of services nt price
Distribution Group agreement
Co. Ltd.Zhejiang Both Execute Sale of Related
Jingrui Steel belong to Sales of according December
Processing goods/render Agreement agreeme 130000 No Yes 2022-73 Bengang goods to the 14 2022
Co. Ltd. of services nt price Group agreement
Tianjin
Ansteel Both Execute Sale of Related
International belong to Sales of according December
North goods/render Agreement agreeme 24951.28 0.82% No Yes 2022-73 Ansteel goods to the 14 2022
Trading Co. of services nt price Group agreement
Ltd.Total -- -- 1344086.35 -- 4287550 -- -- -- -- --
Details of large-value sales returns None
The actual performance during the reporting period (if any)
if the total amount of the daily related party transactions
None
that will occur in the current period is estimated by
category
The reason for the large difference between the transaction
None
price and the market reference price (if applicable)
55Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
2. Related Transactions Relevant to Asset Acquisition or Sold
□Applicable □Not applicable
There was no related transaction relevant to asset acquisition or sold during the reporting period.
3. Related Transactions Relevant to Joint Investments
□Applicable □Not applicable
There was no related transaction relevant to joint investments during the reporting period.
4. Credits and Liabilities with Related Parties
□Applicable □Not applicable
Whether there are non-operating credits and liabilities with related parties
□Yes □No
There exists no non-operating credits and liabilities with related parties.
5. Transactions with Related Financial Companies
□Applicable □Not applicable
Deposit business
Amount for this period
Maximum Total deposit The total Closing
Related party Connection daily deposit Deposit rate
Opening
amount for amount
relation limit range balance withdrawn in balance
(RMB’0000) (RMB’0000)
the current (RMB’0000)
period the current
(RMB’0000) period (RMB’0000)
Ansteel
Both belong
Group
to Ansteel 450000 1.9% 107491.85 6716387.67 6583046.96 240832.56
Finance Co.Group
Ltd.Loan business
Amount for this period
Loan Opening Total loan
Total
repayment Closing
Related party Connection Loan Interest amount for relation Amount (RMB’0000) Rate Range
balance
the current amount for
balance
(RMB’0000)
period the current
(RMB’0000)
(RMB’0000) period (RMB’0000)
Credit or other financial business
Related party Connection relation Business type Total (RMB’0000) Actual amount (RMB’0000)
Ansteel Group Finance Both belong to Ansteel
Co. Ltd. Group
Credit 400000 79527.07
56Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
6. Transactions between Financial Companies Controlled by the Company and Related Parties
□Applicable □Not applicable
During the reporting period the company had no other significant related transactions.
7. Other Significant Related Transactions
□Applicable □Not applicable
The company had no other significant related transactions during the reporting period.XII. Significant Contracts and their Performance
1. Trusteeship Contracting and Leasing Matters
(1) Trusteeship
□Applicable □Not applicable
There was no trusteeship during the reporting period.
(2) Contracting
□Applicable □Not applicable
There was no contracting during the reporting period.
(3) Lease
□Applicable □Not applicable
Description of lease
Company as the lessor:
Lessee Lease capital Lease income recognized in Lease income recognized in category
the current period the previous period
Benxi Iron and Steel Tendering Co. Ltd. Plants and ancillary facilities 250917.43
57Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Company as the lessee:
Current period Previous period
Simplified Simplified
treatment of
rental Variable lease
treatment of Variable lease
Lease capital expenses for payments not Interest
rental
Increased expenses for payments not Interest Lessor category short-term included in the Rent paid expenses on included in the expenses on
Increased
measurement lease liabilities right-of- short-term measurement Rent paid lease liabilities right-of-leases and
leases of of the lease assumed
use assets leases and of the lease assumed use assets leases of
low-value liabilities low-value liabilities
assets assets
Benxi Land use
right
Steel and 7669068.17
Iron square meter. 27627809.26 19750096.20 27625616.70 19500054.00
Land use
(Group) right
Co. Ltd. 42920.00
square meter
Benxi
Steel and 2300 Hot
rolling
Iron product line 8049080.53 3736932.14 8049080.53 3870344.33
(Group) related real
estate
Co. Ltd.Benxi
Beiying 1780 Hot
Steel & rolling product line 7557730.91 2877975.14 6198949.54 2980721.72 Iron
(Group) related real
Co. Ltd. estate
Bensteel Land use
Group right 4972711.54 1315378.20 4972711.54 1224959.39
Co. Ltd. 728282.30 square meter.
58Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Description of related leases:
1. According to the "Land Use Right Leasing Contract" and subsequent supplementary agreements signed between the Company
and Bengang Steel (Group)on April 7 1997 December 30 2005 and subsequent the Company leases land from Benxi Steel
(Group) with a monthly rent of 0.594 yuan per square meter. The leased land is 7669068.17 square meters and the annual rent is
54665.10 thousand yuan.
2. On August 14 2019 the Company signed the "House Lease Agreement" with Benxi Steel (Group) and Beiying Iron and Steel
Company and leased the houses and auxiliary facilities occupied by the 2300 hot rolling mill production line and the 1780 hot
rolling mill production line. The lease term of the houses and ancillary facilities is until December 31 2038.
3. On July 15 2019 the Company signed "Land Lease Agreement" with Bengang Group and Bengang Steel (Group) respectively
leased and used a total of 8 pieces of land from Bengang Group and Bengang Group Company with leased areas of 42920.00
square meters and 728282.30 square meters. The lease term is 20 years the rental price is 1.138 yuan per square meter per month.Projects that bring profits and losses to the company reaching more than 10% of the company's total profit during the reporting
period
□Applicable □Not applicable
During the reporting period of the company there was no leasing project that brought the company's profit and loss to more than
10% of the company's total profit during the reporting period.
2. Significant Guarantees
□Applicable □Not applicable
During the reporting period the company had no significant guarantees.
3. Entrusted Financial Management
□Applicable □Not applicable
There was no entrusted wealth management in the reporting period of the company.
4. Other Major Contracts
□Applicable □Not applicable
There was no other major contract during the reporting period.XIII. Description of Other Major Events
□Applicable □Not applicable
On 21 March 2023 the company disclosed the "Informative Announcement on Planning for Major Asset Replacement and
Related Transactions" planning to conduct asset replacement with Benxi Steel and Iron (Group) Co. Ltd. (hereinafter referred to
as "Benxi Iron and Steel") the assets to be exchanged into the company are 100% equity of Benxi Iron and Steel (Group) Mining
Co. Ltd. the assets of the company to be exchanged out are all assets and liabilities of the listed company except retained assets
59Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
and liabilities the difference between the assets to be exchanged in and the assets to be exchanged out shall be made up by one
party to the other in cash. The company held the 16th meeting of the 9th Board of Directors and the 11th meeting of the 9th Board
of Supervisors on 20 June 2023 the proposals related to the "Proposal on the "Major Assets Replacement and Related Party
Transaction Plan of Bengang Steel Plates Co. Ltd." and its summary" were reviewed and approved and signed the "Major Assets
Replacement Framework Agreement between Benxi Iron and Steel Co. Ltd. and Benxi Steel and Iron (Group) Co. Ltd." with
Benxi Iron and Steel. On 21 June 2023 the company received the "Letter of Concern on the Major Assets Replacement and
Related Transaction Plan of Bengang Plates Co. Ltd." from Shenzhen Stock Exchange at present the company is conducting
further demonstration communication and negotiation on the transaction plan and the scope of the subject assets of the
transaction transaction price and other elements have not been finalized. After the relevant matters are determined the company
will reconvene the Board of Directors for review.XIV. Major Events of Subsidiaries of the Company
□Applicable □Not applicable
On February 28 the company transferred 20% of the equity of its subsidiary Zhejiang Jingrui Steel Processing Co. Ltd. and
completed the industrial and commercial change on March 6. The company no longer holds the equity of Zhejiang Jingrui Steel
Processing Co. Ltd.
60Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Section VII Changes in Share Capital and Shareholders
I. Share Capital Changes
1. Share Capital Changes
Unit: share
Before the change Increase/decrease(+，-) After the ChangeQuantity Percentage Issuing of new Bonus
Capitalization of
share shares common reserve Others Subtotal Quantity Percentage fund
I. Restricted Shares
1. State shareholdings
2. State-own Legal-person
Shareholding
3. Other domestic shareholdings
Including: Domestic legal
person holding
Domestic person holding
3. Foreign shareholding
Including: Foreign legal person
Foreign nature person
II. Non-restricted Shares 4108212217 100.00% 2530 2530 4108214747 100.00%
1. Common shares in RMB 3708212217 90.26% 2530 2530 3708214747 90.26%
2. Foreign shares in domestic
market 400000000 9.74% 400000000 9.74%
3. Foreign shares in foreign
market
4.Other
III. Total shares 4108212217 100.00% 2530 2530 4108214747 100.00%
61Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Reasons for share change
□Applicable □Not applicable
During the reporting period 100 convertible corporate bonds publicly issued by the company were converted into shares and the
company's total share capital increased by 2530 shares.Status of approval of share capital changes
□Applicable □Not applicable
Status of registration process of transferred shares
□Applicable □Not applicable
Implementation progress of share repurchase
□Applicable □Not applicable
The progress of the implementation of the reduction of repurchased shares by means of centralized bidding
□Applicable □Not applicable
The impact of shareholding changes on financial indicators such as basic earnings per share diluted earnings per share and net
assets per share attributable to ordinary shareholders of the company in the last year and the latest period
□Applicable □Not applicable
Other content that the company deems necessary or required by securities regulators to disclose
□Applicable □Not applicable
2. Changes of Restricted Shares
□Applicable □Not applicable
II. Securities Issuance and Listing
□Applicable □Not applicable
62Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
III. Number of Shareholders and Shareholding Status of the Company
单位：股
Total number of common shareholders at the end of the 51840 The total number of Preferred shareholders voting rights restored at reporting period the end of the reporting period (if any) (refer to Notes 8) 0
Shareholding of shareholders holding more than 5% or top 10 shareholders
Name of the shareholder Nature of Holding Number of shares Changes in reporting Restricted shares Un-restricted shares
Number of pledged or frozen shares
shareholder Percentage (%) held at period-end period held held Status Number
Pledged 110000000
Benxi Steel and Iron (Group) Co. Ltd. State-owned legal person 58.65% 2409628094 2409628094 Frozen 102100000
Bensteel Group Co. Ltd. State-owned legal person 17.95% 737371532 737371532
Guan Hui Domestic natural person 0.63% 25970000 8570000 25970000
Gao Tao Domestic natural person 0.56% 23000000 23000000 23000000
Zhang Wenyou Domestic natural person 0.47% 19149967 19149967
Hong Kong Securities Clearing Company Foreign legal
person 0.42% 17094730 5823596 17094730 Limited
Zhou Wei Domestic natural person 0.22% 9081800 250000 9081800
Industrial Bank Co. Ltd.-Wanjia dual-
engine flexible allocation hybrid Others 0.18% 7442889 7442889 7442889
securities investment fund
Li Chunhou Domestic natural person 0.17% 7000000 -550000 7000000
Agricultural Bank of China Co. Ltd.-
Wanjia Beijing Stock Exchange Huixuan Others 0.15% 6198111 6198111 6198111
two-year regular open hybrid securities
investment fund
Strategic investors or general legal persons who become the
top 10 ordinary shareholders due to allotment of new shares None
(if any) (see Note 3)
Benxi Steel and Iron (Group) Co. Ltd. has an associated relationship with Bengang Group Co. Ltd. and is a person acting in concert as stipulated in the
Explanation on the related relationship or concerted action of
"Administrative Measures for the Acquisition of Listed Companies". The company does not know whether there is an associated relationship among
the above-mentioned shareholders
other shareholders or whether they are persons acting in concert as stipulated in the "Administrative Measures for the Acquisition of Listed Companies".Explanation of the above-mentioned shareholders involved in
The above-mentioned shareholders are not involved in entrustment entrusted voting rights or waiver of voting rights.entrusted/entrusted voting rights and waiver of voting rights
63Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Special instructions for repurchase accounts among the top
None
10 shareholders (if any) (see Note 11)
Shareholding of top 10 unrestricted shareholders
Category of shares
Name of the shareholder Un-restricted shares held at the end of the reporting period Category of
shares Quantity
Benxi Steel and Iron (Group) Co. Ltd. 2409628094 Common shares in RMB 2409628094
Bengang Group Co. Ltd. 737371532 Common shares in RMB 737371532
Guan Hui 25970000 Common shares in RMB 25970000
Gao Tao 23000000 Domestic listed foreign shares 23000000
Zhang Wenyou 19149967 Common shares in RMB 19149967
Hong Kong Securities Clearing Company Limited 17094730 Common shares in RMB 17094730
Zhou Wei 9081800 Common shares in RMB 9081800
Industrial Bank Co. Ltd.-Wanjia dual-engine flexible
7442889 Common shares in RMB 7442889 allocation hybrid securities investment fund
Li Chunhou 7000000 Common shares in RMB 7000000
Agricultural Bank of China Co. Ltd.-Wanjia Beijing Stock
Exchange Huixuan two-year regular open hybrid securities 6198111 Common shares in RMB 6198111
investment fund
Explanation on the associated relationship or concerted
action among the top 10 shareholders of ordinary shares not Benxi Steel and Iron (Group) Co. Ltd. has an associated relationship with Bensteel Group Co. Ltd. and is a person acting in concert as stipulated in the
subject to sales restrictions and between the top 10 "Administrative Measures for the Acquisition of Listed Companies". The company is not aware of whether there is an associated relationship among
shareholders of ordinary shares not subject to restrictions on other shareholders or whether they are persons acting in concert as stipulated in the "Administrative Measures for the Acquisition of Listed Companies".sales and the top 10 shareholders of ordinary shares
Explanation on the participation of the top 10 ordinary Guan Hui holds 25970000 shares of the company through an investor credit securities account. Zhang Wenyou held 19149967 shares of the company
shareholders in the margin financing and securities lending through an investor credit securities account. Zhou Wei holds 250000 shares of the company's stock through the investor's ordinary account and holds
business (if any) (see note 4) 8831800 shares of the company's stock through the investor's credit securities account.Whether the company's top 10 shareholders of common shares and top 10 shareholders of common shares not subject to sales restrictions conducted agreed repurchase transactions during the
reporting period
□Yes □No
The company's top 10 shareholders of common shares and top 10 shareholders of common shares not subject to sales restrictions did not conduct agreed repurchase transactions during the
reporting period.
64Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
IV. Changes in Shareholding of Directors Supervisors and Senior Management
□Applicable □Not applicable
There was no change in the shareholding of the directors supervisors and senior management of the company during the reporting
period. Please refer to the 2022 annual report for details.V. Changes in Controlling Shareholders or Actual Controllers
Changes of controlling shareholders during the reporting period
□Applicable □Not applicable
During the reporting period the controlling shareholder of the company remained unchanged.Changes in the actual controller during the reporting period
□Applicable □Not applicable
The actual controller of the company did not change during the reporting period.
65Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Section VIII Preference Shares Related Situation
□Applicable □Not applicable
During the reporting period the company had no preference shares.
66Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Section IX Bonds Related Situation
□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 any corporate bonds.III. Non-financial Corporate Debt Financing Instruments
□Applicable □Not applicable
During the reporting period the company did not have non-financial enterprise debt financing instruments.IV. Convertible Corporate Bonds
□Applicable □Not applicable
1. Previous adjustments and revisions of the conversion price
(1) The initial conversion price of "Bengang Convertible Bonds" is RMB 5.03 per share.
(2) Due to the company's implementation of the 2020 equity distribution plan the conversion price of "Bengang Convertible
Bonds" will be adjusted to RMB 5.02 yuan per share on July 19 2021.
(3) Due to the company's implementation of the 2021 mid-term equity distribution plan the conversion price of "Bengang
Convertible Bonds" will be adjusted to RMB 4.55 yuan per share on October 13 2021.
(4) Due to the company's implementation of the 2021 equity distribution plan the conversion price of "Benxiu Convertible Bonds"
will be adjusted to RMB 3.95 yuan per share on October 13 2021.
67Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
2. Status of cumulative share transfer
□Applicable □Not applicable
Proportion of
Cumulative the number Proportion of
Convertible Conversion Total amount Total amount Cumulative share number of of converted unconverted bond starts and issued issued conversion shares shares to the
Amount not yet amount to
abbreviation end date (bonds) amount (RMB) converted total issued
converted (RMB) total issued
(shares) shares before amount
conversion
January 4
Bengang
2021 to
Convertible 68000000 6800000000.00 1168957900.00 232843215 6.01% 5631042100.00 82.81%
June 28
Bonds
2026
3. Top ten holders of convertible bonds
Number of Amount of Percentage of
Convertible bond Nature of convertible bonds convertible bonds convertible bonds No. holders convertible bond held at the end of held at the end of held at the end of holders the reporting the reporting the reporting
period (bonds) period (yuan) period
Bank of China
Limited - Yifangda
1 Steady Income Others 1909631 190963100.00 3.39%
Bond Securities
Investment Fund
Agricultural Bank
of China Co. Ltd.
2 - Southern Xiyuan Convertible Bond Others 1585975 158597500.00 2.82%
Bond Securities
Investment Fund
China CITIC
Group Co. Ltd.
3 Enterprise Annuity Plan - China Others 1405380 140538000.00 2.50%
CITIC Bank Co.Ltd.China AMC Yan
Nian Yi Shou No.
4 9 Fixed Income Pension Product - Others 1362468 136246800.00 2.42%
China Merchants
Bank Co. Ltd.Bank of China
Limited - Southern
5 Changyuan Convertible Bond Others 1206048 120604800.00 2.14%
Securities
Investment Fund
Industrial and
Commercial Bank
6 of China Limited - Others 1200006 120000600.00 2.13%
Boshi Credit Bond
Investment Fund
China
Construction Bank
7 Corporation - Others 1109058 110905800.00 1.97%
Huashang Credit
Enhanced Bond
68Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Securities
Investment Fund
Industrial Bank
Co. Ltd. -
8 Tianhongyongli Others 957185 95718500.00 1.70%
Bond Securities
Investment Fund
Great Wall Guorui Domestic non-
9 Securities Co. state-owned legal 853440 85344000.00 1.52%
Ltd. person
Pacific Asset
Management -
China Merchants
10 Bank - Pacific Others 839615 83961500.00 1.49%
Excellence
Convertible Bond
Products
4. Significant changes in the guarantor's profitability asset condition and credit standing
□Applicable □Not applicable
5. At the end of the reporting period the company's liabilities changes in credit and cash
arrangements and debt repayment in future years
As of the end of the reporting period the company's main 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 in the Consolidated Statement During the Reporting Period Exceeded 10% of
the Net Assets at the End of the Previous Year
□Applicable □Not applicable
VI. The Main Accounting Data and Financial Indix of the Company in the Past Two Years
at the End of the Reporting Period
Unit: ten thousand yuan
Item Changes over 31 December 30 June 2023 31 December 2022
2022
Current ratio 0.73 0.81 -8.16%
Liabilities to Assets Ratio 59.83% 56.07% 3.76%
Quick ratio 0.29 0.21 8.04%
Current period Previous period Changes over previous period
Net profit after deducting
non-recurring gains and -103833.29 54044.79 -292.12%
losses (RMB)
EBITDA total liabilities ratio 1.99% 9.15% -7.16%
Interest coverage ratio -3.05 3.29 -192.71%
Cash interest coverage ratio 20.09 1.24 1520.16%
EBITDA interest coverage
ratio 2.33 6.61 -64.75%
Loan repayment rate 100.00% 100.00%
Interest repayment rate 100.00% 100.00%
69Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Section Ⅹ Financial Report
I. Audit report
Whether the semi-annual report is audited
□Yes □No
The semi-annual report is not audited.II. Financial Statements
The unit of the statement in the financial notes is: RMB yuan
1. Consolidated Statement of Financial Position
Prepared by: Bengang Steel Plates Co. Ltd.
30 June 2023
Unit: yuan
Items 30 June 2023 1 January 2023
CURRENT ASSETS:
Monetary funds 3656559532.07 1461145641.87
Settlements provision
Loans to banks and other financial
institutions
Financial assets held-for-trading
Derivative financial assets
Notes receivable 87391995.82 429707174.70
Accounts receivable 914407662.17 897230896.06
Accounts receivable financing 953938535.80 137591996.02
Prepayments 937624582.00 1247177748.33
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other receivables 98776833.29 127198692.92
Including: Interests receivable
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 7602269679.35 8463728475.18
Contract assets
Assets held for sale
Non-current assets maturing within one
year
Other current assets 39068241.10 395441136.26
TOTAL CURRENT ASSETS 14290037061.60 13159221761.34
NON-CURRENT ASSETS:
Disbursement of advances and loans
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 47556655.02 51030777.18
70Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Other equity instrument investments 1020418482.31 1020418482.31
Other non-current financial assets
Investment properties
Fixed assets 24254961069.74 24836556422.90
Construction in progress 4151149369.23 3158195899.65
Productive biological assets
Oil and natural gas assets
Right-of-use assets 1349803446.63 1379990713.89
Intangible assets 259745931.54 262784937.41
Development costs
Goodwill
Long-term deferred expenses
Deferred tax assets 148010869.57 136387885.28
Other non-current assets 349815196.20 110065560.68
TOTAL NON-CURRENT ASSETS 31581461020.24 30955430679.30
TOTAL ASSETS 45871498081.84 44114652440.64
CURRENT LIABILITIES:
Short-term borrowings 300020000.00 49200000.00
Borrowings from central bank
Loans from banks and other financial
institutions
Financial liabilities held-for-trading
Derivative financial liabilities
Notes payable 7719942239.59 4389336619.36
Accounts payable 4092895525.39 3696420463.85
Advances from customers
Contract liabilities 3733739770.22 3794115592.29
Financial assets sold under repurchase
agreements
Deposits and balances from customers and
banks
Customer securities brokerage deposits
Customer securities underwriting deposits
Employee benefits payable 12952463.97 10046363.27
Taxes and surcharges payable 106443329.12 44392920.78
Other payables 1639486201.24 1247722165.47
Including: Interests payable
Dividends payable
Fees and commissions payable
Reinsurance payables
Liabilities held for sale
Non-current liabilities maturing within one
year 1613201458.81 2586250886.43
Other current liabilities 485575516.40 493235027.03
TOTAL CURRENT LIABILITIES 19704256504.74 16310720038.48
NON-CURRENT LIABILITIES:
Insurance contract reserve
Long-term borrowings 959713911.60 1726938302.30
Bonds payable 5382304119.20 5276502232.78
Including: Preferred stock
Perpetual bonds
Lease liabilities 1364333523.13 1384348462.18
Long-term payables
Long-term employee benefits payable
Provision
Deferred income 41387816.78 42377015.51
Deferred tax liabilities 27309.01 27309.01
Other non-current liabilities
71Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
TOTAL NON-CURRENT LIABILITIES 7747766679.72 8430193321.78
TOTAL LIABILITIES 27452023184.46 24740913360.26
OWNERS' EQUITY:
Share capital 4108214747.00 4108212217.00
Other equity instruments 947861798.36 947863834.02
Including: Preferred stocks
Perpetual bonds
Capital reserves 13272212557.25 13272205160.21
Less: treasury stock
Other comprehensive income -15904760.02 -15904760.02
Special reserves 29010352.89 2217913.77
Surplus reserves 1195116522.37 1195116522.37
General risk reserves
Undistributed profits -1725505294.41 -720559670.73
Total equity attributable to the owners of
the parent company 17811005923.44 18789151216.62
Non-controlling interests 608468973.94 584587863.76
TOTAL OWNERS' EQUITY 18419474897.38 19373739080.38
TOTAL LIABILITIES AND OWNERS'
EQUITY 45871498081.84 44114652440.64
Legal Representative: Li Yan Chief financial officer: Zheng Zhengli Chief accountant: Sun Yanbin
2. Parent Company's Statement of Financial Position
Unit: yuan
Items 30 June 2023 1 January 2023
CURRENT ASSETS:
Monetary funds 2494741609.19 585125555.12
Financial assets held-for-trading
Derivative financial assets
Notes receivable 877829539.94 669193401.02
Accounts receivable 693637618.60 931035796.58
Accounts receivable financing 827579316.11 127468835.80
Prepayments 922061764.36 1247084271.88
Other receivables 166743093.49 150724545.56
Including: Interests receivable
Dividends receivable
Inventories 6714763093.25 6988993205.61
Contract assets
Assets held for sale
Non-current assets maturing within one year
Other current assets 848555.43 310293996.25
TOTAL CURRENT ASSETS 12698204590.37 11009919607.82
NON-CURRENT ASSETS:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 2269838245.27 2270277904.85
Other equity instrument investment 1020418482.31 1020418482.31
Other non-current financial assets
Investment properties
Fixed assets 23245968241.40 23777736434.39
Construction in progress 4120300973.77 3127247793.98
Productive biological assets
Oil and natural gas assets
72Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Right-of-use assets 1349803446.63 1379990713.89
Intangible assets 172578872.34 174295096.19
Development costs
Goodwill
Long-term deferred expenses
Deferred tax assets 145264403.37 115126210.76
Other non-current assets 349815196.20 110065560.68
TOTAL NON-CURRENT ASSETS 32673987861.29 31975158197.05
TOTAL ASSETS 45372192451.66 42985077804.87
CURRENT LIABILITIES:
Short-term borrowings 300020000.00 49200000.00
Financial liabilities held-for-trading
Derivative financial liabilities
Notes payable 7715109085.39 3982738952.59
Accounts payable 4236729868.04 3821848200.25
Advances from customers
Contract liabilities 4845887001.18 4805281178.80
Employee benefits payable 12147392.67 9901551.31
Taxes and surcharges payable 80296377.93 22518649.65
Other payables 1481659234.98 861392691.88
Including: Interests payable
Dividends payable
Liabilities held for sale
Non-current liabilities maturing within one
year 1613201458.81 2586250886.43
Other current liabilities 629965310.15 624686553.24
TOTAL CURRENT LIABILITIES 20915015729.15 16763818664.15
NON-CURRENT LIABILITIES:
Long-term borrowings 959713911.60 1726938302.30
Bonds payable 5382304119.20 5276502232.78
Including: Preferred stock
Perpetual bonds
Lease liabilities 1364333523.13 1384348462.18
Long-term payables
Long-term employee benefits payable
Provision
Deferred income 41387816.78 42377015.51
Deferred tax liabilities 27309.01 27309.01
Other non-current liabilities
TOTAL NON-CURRENT LIABILITIES 7747766679.72 8430193321.78
TOTAL LIABILITIES 28662782408.87 25194011985.93
OWNERS' EQUITY:
Share capital 4108214747.00 4108212217.00
Other equity instrument 947861798.36 947863834.02
Including: Preferred stocks
Perpetual bonds
Capital reserves 12852060875.13 12852053478.09
Less: treasury stock
Other comprehensive income -15904760.02 -15904760.02
Special reserves 19831812.69 58212.15
Surplus reserves 1195116522.37 1195116522.37
Undistributed profits -2397770952.74 -1296333684.67
TOTAL OWNERS' EQUITY 16709410042.79 17791065818.94
TOTAL LIABILITIES AND OWNERS'
EQUITY 45372192451.66 42985077804.87
73Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
3. Consolidated Statement of Profit or Loss and Other Comprehensive Income
Unit: yuan
Items Current period Previous period
I. REVENUE 30567409205.03 35015177304.98
Including: Operating income 30567409205.03 35015177304.98
Interests income
Earned premiums
Income from handling charges and
commissions
II. COST OF SALES 31417700991.35 34212560449.82
Including: Operating costs 30714640963.91 33377477540.63
Interest expenses
Handling charges and commissions
expenses
Surrender value
Net amount of insurance claims
Net provision of insurance contract reserve
Policy dividend payment
Reinsurance expense
Taxes and surcharges 99040677.75 99885445.23
Selling expenses 69901883.24 67430875.17
Administrative expenses 339569021.49 352304684.10
Research and development expenses 32990679.09 22368496.87
Finance costs 161557765.87 293093407.82
Including: Interest expenses 234419462.35 342674208.42
Interest income 27351519.21 61019147.27
Add: Other income 3518092.14 30655542.92
Investment income ("-" for losses) -2541506.30 115842.84
Including: Income from investment in associates
and joint ventures -439659.58 85455.22
Gains /(losses) from derecognition of financial
assets measured at amortised cost
Foreign exchange gains ("-" for losses)
Income /(losses) from net exposure hedging
Gains from changes in fair value ("-" for losses)
Credit impairment losses ("-" for losses) -17450773.47 -793906.73
Asset impairment losses ("-" for losses) -84458260.66 -72880991.53
Gains on disposal of assets ("-" for losses) 3648546.62
III. PROFIT FROM OPERATIONS ("-" For Losses) -951224234.61 763361889.28
Add: Non-operating income 51584548.03 30572281.35
Less: Non-operating expenses 50585327.13 10765339.79
IV. PROFIT BEFORE TAX ("-" For Total Losses) -950225013.71 783168830.84
Less: Income tax expenses 33191710.84 203204954.60
V. NET PROFIT ("-" For Net Loss) -983416724.55 579963876.24
I. Classified by going concern:
Net profit from the continuing operations("-" for net 579963876.24
loss) -983416724.55
Net profit from the discontinued operations("-" for net
loss)
II. Classified by ownership:
Net profit attributable to the owners of the parent 561735377.41
company("-" for net loss) -1004945623.68
Non-controlling interests("-" for net loss) 21528899.13 18228498.83
VI. NET AMOUNT OF OTHER COMPREHENSIVE
INCOME AFTER TAX
Net amount of other comprehensive income
attributable to owners of the parent company net of
tax
(i) Other comprehensive incomes that cannot be
reclassified into profit or loss
1. Changes arising from recalculating defined
benefit plans
74Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
2. Other comprehensive incomes that cannot be
reclassified into profit or loss under equity
accounting method
3. Changes in fair value of other equity instrument
investment
4. Changes in fair value of the company’s own
credit risks
5.Others
(ii) Other comprehensive incomes that will be
reclassified into profit or loss
1. Other comprehensive incomes that will be
reclassified into profit or loss under equity
accounting method
2. Changes in fair value of other debt instrument
investment
3. Other comprehensive income arising from the
reclassification of financial assets
4. Provision for credit impairment in other debt
investments
5. Cash flow hedge reserve
6. Foreign currency translation differences in
financial statements
7. Others
Net amount of other comprehensive income
attributable to minority shareholders net of tax
VII. TOTAL COMPREHENSIVE INCOME -983416724.55 579963876.24
Total comprehensive income attributable to owners of
the parent company -1004945623.68 561735377.41
Total comprehensive income attributable to minority
shareholders 21528899.13 18228498.83
VIII. EARNINGS PER SHARE:
1. Basic earnings per share (yuan/share) -0.2446 0.1400
2. Diluted earnings per share (yuan/share) -0.1558 0.1400
Legal Representative: Li Yan Chief financial officer: Zheng Zhengli Chief accountant: Sun Yanbin
4. Parent Company's Statement of Profit or Loss and Other Comprehensive Income
Unit: yuan
Items Current period Previous period
I. REVENUE 30351590885.27 35774038070.43
Less: Operating costs 30725796931.13 34404712933.07
Taxes and surcharges 70444069.04 74061344.22
Selling expenses 72626552.38 58854346.91
Administrative expenses 320165443.13 323747875.71
Research and development expenses 32990679.09 22368496.87
Finance costs 168567801.72 290720557.98
Including: Interest expenses 233021988.80 327728944.07
Interest income 18139148.26 48263709.87
Add: Other income 2943726.56 30272965.00
Investment income ("-" for losses) -2247043.73 59198924.51
Including: Income from investment in
associates and joint ventures -439659.58
Gains from derecognition of
financial assets measured at
amortized cost
Income from net exposure hedging ("-"
for losses)
Gains from changes in fair value ("-"
for losses)
Credit impairment losses ("-" for
losses) -11635010.35 -1392974.69
Asset impairment losses ("-" for losses) -84458260.66 -72880991.53
Gains on disposal of assets ("-" for
losses) 3669258.68
II. PROFIT FROM OPERATIONS ("-" -1134397179.40 618439697.64
75Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
For Losses)
Add: Non-operating income 51556172.07 24296108.68
Less: Non-operating expenses 50585327.13 10736478.75
III. PROFIT BEFORE TAX ("-" For Total
Losses) -1133426334.46 631999327.57
Less: Income tax expenses -31989066.39 150685673.12
IV. NET PROFIT ("-" For Net Loss) -1101437268.07 481313654.45
1. Net profit/(loss) from continuing
operation -1101437268.07 481313654.45
2. Net profit/(loss) from discontinued
operation
V. NET AMOUNT OF OTHER
COMPREHENSIVE INCOME AFTER
TAX
(i) Other comprehensive incomes that
cannot be reclassified into profit or loss
1. Changes arising from recalculating
defined benefit plans
2. Other comprehensive incomes that
cannot be reclassified into profit or
loss under equity accounting method
3. Changes in fair value of other equity
instrument investment
4. Changes in fair value of the
company’s own credit risks
5.Others
(ii) Other comprehensive incomes that will
be reclassified into profit or loss
1. Other comprehensive incomes that
will be reclassified into profit or loss
under equity accounting method
2. Changes in fair value of other debt
instrument investment
3. Other comprehensive income arising
from the reclassification of financial
assets
4. Provision for credit impairment in
other debt investments
5. Cash flow hedge reserve
6. Foreign currency translation
differences in financial statements
7. Others
VI. TOTAL COMPREHENSIVE INCOME -1101437268.07 481313654.45
VII. EARNINGS PER SHARE:
1. Basic earnings per share (yuan/share)
2. Diluted earnings per share (yuan/share)
5. Consolidated Statement of Cash Flows
Unit: yuan
Items Current period Previous period
I. CASH FLOWS FROM OPERATING
ACTIVITIES:
Cash received from sale of goods and
rendering of services 28113350099.51 30399917736.81
Net increase in deposits from customers and
other banks
Net increase in borrowings from central
bank
Net increase in loans from other financial
institutions
Cash received from receiving insurance
premium of original insurance contracts
Net cash received from reinsurance
business
Net increase in deposits and investments
from policyholders
76Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Cash received from interest handling
charges and commissions
Net increase in loans from banks and other
financial institutions
Net increase in repurchase business funds
Net cash received from securities trading
brokerage business
Cash received from tax refund 152957619.94 411362662.88
Cash received from other operating
activities 66147192.05 168719124.22
SUB-TOTAL OF CASH INFLOWS FROM
OPERATING ACTIVITIES 28332454911.50 30979999523.91
Cash paid for goods purchased and services
received 22042504737.63 28939015822.97
Net increase in loans and advances to
customers
Net increase in deposits in central bank and
other banks
Cash paid for original insurance contract
claims
Net increase in loans to banks and other
financial institutions
Cash paid for interest handling charges and
commissions
Cash paid for policy dividends
Cash paid to and on behalf of employees 1233151555.08 1281589573.82
Cash paid for taxes and surcharges 216708235.51 282883307.60
Cash paid for other operating activities 177453101.47 249058977.31
SUB-TOTAL OF CASH OUTFLOWS
FROM OPERATING ACTIVITIES 23669817629.69 30752547681.70
NET CASH FLOWS FROM OPERATING
ACTIVITIES 4662637281.81 227451842.21
II. CASH FLOWS FROM INVESTING
ACTIVITIES:
Cash received from disposal of investments 1843800.00
Cash received from returns on investments 896200.00
Net cash received from disposal of fixed
assets intangible assets and other long-term 31053599.66 60800.00
assets
Net cash received from disposal of
subsidiaries and other business units
Cash received from other investing
activities
SUB-TOTAL OF CASH INFLOWS FROM
INVESTING ACTIVITIES 33793599.66 60800.00
Cash paid to acquire and construct fixed
assets intangible assets and other long-term 926848281.71 755407575.62
assets
Cash paid for investments
Net increase in pledge loans
Net cash paid to acquire subsidiaries and
other business units
Cash paid for other investing activities
SUB-TOTAL OF CASH OUTFLOWS
FROM INVESTING ACTIVITIES 926848281.71 755407575.62
NET CASH FLOWS FROM INVESTING
ACTIVITIES -893054682.05 -755346775.62
III. CASH FLOWS FROM FINANCING
ACTIVITIES:
Cash from absorption of investments
Including: Cash received by subsidiaries
from investments by minority
shareholders
Cash received from borrowings 300000000.00 602067123.44
Cash received from other financing
activities 299914718.38 2548792921.60
SUB-TOTAL OF CASH INFLOWS FROM
FINANCING ACTIVITIES 599914718.38 3150860045.04
Cash paid for debt repayments 1691272090.32 1393191834.05
Cash paid for distribution of dividends and 174775117.17 2708922405.78
77Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
profits or payment of interest
Including: Dividends and profits paid to
minority shareholders by subsidiaries
Cash paid for other financing activities 695121631.51 71693646.43
SUB-TOTAL OF CASH OUTFLOWS
FROM FINANCING ACTIVITIES 2561168839.00 4173807886.26
NET CASH FLOWS FROM FINANCING
ACTIVITIES -1961254120.62 -1022947841.22
IV. EFFECT OF FLUCTUATION IN
EXCHANGE RATE ON CASH AND 30544772.80 2217009.66
CASH EQUIVALENTS
V. NET INCREASE IN CASH AND CASH
EQUIVALENTS 1838873251.94 -1548625764.97
Add: Balance of cash and cash equivalents
at the beginning of the period 1296662683.20 6299099063.48
VI. BALANCE OF CASH AND CASH
EQUIVALENTS AT THE END OF THE 3135535935.14 4750473298.51
PERIOD
6. Parent Company's Statement of Cash Flows
Unit: yuan
Items Current period Previous period
I. CASH FLOWS FROM OPERATING
ACTIVITIES:
Cash received from sale of goods and
rendering of services 27625067518.78 30919471674.38
Cash received from tax refund 144310086.64 406487928.59
Cash received from other operating
activities 55780538.64 155803337.55
SUB-TOTAL OF CASH INFLOWS FROM 27825158144.06 31481762940.52
OPERATING ACTIVITIES
Cash paid for goods purchased and services
received 22087125206.72 29479472246.34
Cash paid to and on behalf of employees 1169170038.27 1197357426.66
Cash paid for taxes and surcharges 64558833.83 102560662.62
Cash paid for other operating activities 159109487.43 138755917.63
SUB-TOTAL OF CASH OUTFLOWS 23479963566.25 30918146253.25
FROM OPERATING ACTIVITIES
NET CASH FLOWS FROM OPERATING 4345194577.81 563616687.27
ACTIVITIES
II. CASH FLOWS FROM INVESTING
ACTIVITIES:
Cash received from returns on investments
Cash received from returns on investments 53139377.16
Net cash received from disposal of fixed
assets intangible assets and other long-term 31053599.66 60800.00
assets
Net cash received from disposal of
subsidiaries and other business units 33061417.35
Cash received from other investing
activities 17624754.20
SUB-TOTAL OF CASH INFLOWS FROM
INVESTING ACTIVITIES 48678353.86 86261594.51
Cash paid to acquire and construct fixed
assets intangible assets and other long-term 925373942.02 749875275.53
assets
Cash paid for investments 850000000.00
Net cash paid to acquire subsidiaries and
other business units
Cash paid for other investing activities
SUB-TOTAL OF CASH OUTFLOWS
FROM INVESTING ACTIVITIES 925373942.02 1599875275.53
78Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
NET CASH FLOWS FROM INVESTING -876695588.16 -1513613681.02
ACTIVITIES
III. CASH FLOWS FROM FINANCING
ACTIVITIES:
Cash from absorption of investments
Cash received from borrowings 300000000.00 602067123.44
Cash received from other financing
activities 299914718.38 2548792921.60
SUB-TOTAL OF CASH INFLOWS FROM
FINANCING ACTIVITIES 599914718.38 3150860045.04
Cash paid for debt repayments 1691272090.32 1293191834.05
Cash paid for distribution of dividends and
profits or payment of interest 174775117.17 2695763155.78
Cash paid for other financing activities 678225192.33 71693646.43
SUB-TOTAL OF CASH OUTFLOWS 2544272399.82 4060648636.26
FROM FINANCING ACTIVITIES
NET CASH FLOWS FROM FINANCING -1944357681.44 -909788591.22
ACTIVITIES
IV. EFFECT OF FLUCTUATION IN
EXCHANGE RATE ON CASH AND 28934107.60 1506171.92
CASH EQUIVALENTS
V. NET INCREASE IN CASH AND CASH 1553075415.81 -1858279413.05
EQUIVALENTS
Add: Balance of cash and cash equivalents
at the beginning of the period 420642596.45 5048875333.01
VI. BALANCE OF CASH AND CASH
EQUIVALENTS AT THE END OF THE 1973718012.26 3190595919.96
PERIOD
79Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
7. Consolidated Statement of Changes in Equity
Current period
Unit: yuan
Current period
Owner's equity attributable to parent company
Items
Other equity instruments Less: Other General Non-controlling
Total of
Share capital Preference Perpetual Capital reserves Treasury comprehensive Special Undistributed interest
shareholders’
shares bond Others shares income reserves
Surplus reserves risk
reserves profits
Others Subtotal equity
I. 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
Others
II. Opening balance of current year 4108212217.00 947863834.02 13272205160.21 -15904760.02 2217913.77 1195116522.37 -720559670.73 18789151216.62 584587863.76 19373739080.38
III. Changes in current year (“-” for
decreases) 2530.00 -2035.66 7397.04 26792439.12 -1004945623.68 -978145293.18 23881110.18 -954264183.00
1. Total comprehensive income -1004945623.68 -1004945623.68 21528899.13 -983416724.55
2. Capital increases and decreases
by shareholders 2530.00 -2035.66 7397.04 7891.38 7891.38
(1) Common share invested by
shareholders
(2) Capital input by the holder of
other equity instruments
(3) Share-based payment
attributable to owners’ equity
(4) Others 2530.00 -2035.66 7397.04 7891.38 7891.38
3. Profit distribution
(1) Appropriation to surplus
reserves
(2) Appropriation to general risk
reserves
(3) Profit distribution to
shareholders
(4) Others
4. Transfers within shareholders’
equity
(1) Capital reserves transferred into
paid-in capital (or share capital)
(2) Surplus reserves transferred into
paid-in capital (or share capital)
(3) Surplus reserves to recover
losses
(4) Net changes of defined
contribution plans transferred into
retained earnings
(5) Other comprehensive income
transferred into retained earnings
(6) Others
5. Special reserves 26792439.12 26792439.12 2352211.05 29144650.17
(1) Provision of special reserves 34099757.81 34099757.81 2472551.75 36572309.56
(2) Use of special reserves 7307318.69 7307318.69 120340.70 7427659.39
6. Others
IV. Ending balance of current year 4108214747.00 947861798.36 13272212557.25 -15904760.02 29010352.89 1195116522.37 -1725505294.41 17811005923.44 608468973.94 18419474897.38
80Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Previous period
Unit: yuan
Previous period
Owner's equity attributable to parent company
Items Non-controlling Total of Other equity instruments Less: Other General shareholders’
Share capital Special Preference Perpetual Capital reserves Treasury comprehensive reserves Surplus reserves risk
Undistributed Others Subtotal interest equity
shares bond Others shares income reserves
profits
I. Ending balance of last year 4108191379.00 947882663.63 13272134173.09 337978.57 1195116522.37 2977306297.64 22500969014.30 565441001.73 23066410016.03
Add: Change of accounting policies
Correction of errors for last
period
Business consolidation under
common control
Others
II. Opening balance of current year 4108191379.00 947882663.63 13272134173.09 337978.57 1195116522.37 2977306297.64 22500969014.30 565441001.73 23066410016.03
III. Changes in current year (“-” for
decreases) 17727.00 -16325.76 61887.86 31151584.66 -1903179449.99 -1871964576.23 20714933.09 -1851249643.14
1. Total comprehensive income 561735377.41 561735377.41 18228498.83 579963876.24
2. Capital increases and decreases
by shareholders 17727.00 -16325.76 61887.86 63289.10 63289.10
(1) Common share invested by
shareholders
(2) Capital input by the holder of
other equity instruments
(3) Share-based payment
attributable to owners’ equity
(4) Others 17727.00 -16325.76 61887.86 63289.10 63289.10
3. Profit distribution -2464914827.40 -2464914827.40 -2464914827.40
(1) Appropriation to surplus
reserves
(2) Appropriation to general risk
reserves
(3) Profit distribution to
shareholders -2464914827.40 -2464914827.40 -2464914827.40
(4) Others
4. Transfers within shareholders’
equity
(1) Capital reserves transferred into
paid-in capital (or share capital)
(2) Surplus reserves transferred into
paid-in capital (or share capital)
(3) Surplus reserves to recover
losses
(4) Net changes of defined
contribution plans transferred into
retained earnings
(5) Other comprehensive income
transferred into retained earnings
(6) Others
5. Special reserves 31151584.66 31151584.66 2486434.26 33638018.92
(1) Provision of special reserves 38838893.44 38838893.44 2489359.76 41328253.20
(2) Use of special reserves 7687308.78 7687308.78 2925.50 7690234.28
6. Others
IV. Ending balance of current year 4108209106.00 947866337.87 13272196060.95 31489563.23 1195116522.37 1074126847.65 20629004438.07 586155934.82 21215160372.89
81Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
8. Parent Company's Statement of Changes in Equity
Current period
Unit: yuan
Current period
Items Other equity instruments Total of
Share capital Capital reserves Less: Treasury Other comprehensive Special Surplus reserves Undistributed shareholders’ Preference Perpetual shares income reserves profits Others
shares bond Others equity
I. 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
II. Opening balance of current year 4108212217.00 947863834.02 12852053478.09 -15904760.02 58212.15 1195116522.37 -1296333684.67 17791065818.94
III. Changes in current year (“-” for decreases) 2530.00 -2035.66 7397.04 19773600.54 -1101437268.07 -1081655776.15
1. Total comprehensive income -1101437268.07 -1101437268.07
2. Capital increases and decreases by shareholders 2530.00 -2035.66 7397.04 7891.38
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity instruments
(3) Share-based payment attributable to owners’ equity
(4) Others 2530.00 -2035.66 7397.04 7891.38
3. Profit distribution
(1) Appropriation to surplus reserves
(2) Appropriation to general risk reserves
(3) Profit distribution to shareholders
5. Transfers within shareholders’ equity
(1) Capital reserves transferred into paid-in capital (or share capital)
(2) Surplus reserves transferred into paid-in capital (or share capital)
(3) Surplus reserves to recover losses
(4) Net changes of defined contribution plans transferred into retained
earnings
(5) Other comprehensive income transferred into retained earnings
(6) Others
5. Special reserves 19773600.54 19773600.54
(1) Provision of special reserves 26797787.85 26797787.85
(2) Use of special reserves 7024187.31 7024187.31
6. Others
IV. Ending balance of current year 4108214747.00 947861798.36 12852060875.13 -15904760.02 19831812.69 1195116522.37 -2397770952.74 16709410042.79
82Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Previous period
Unit: yuan
Previous period
Items Other equity instruments Total of
Share capital Capital reserves Less: Treasury Other comprehensive Special Surplus reserves Undistributed Others shareholders’ Preference Perpetual
shares bond Others
shares income reserves profits equity
I. Ending balance of last year 4108191379.00 947882663.63 12851982490.97 155469.58 1195116522.37 2491021746.82 21594350272.37
Add: Change of accounting policies
Correction of errors for last period
Others
II. Opening balance of current year 4108191379.00 947882663.63 12851982490.97 155469.58 1195116522.37 2491021746.82 21594350272.37
III. Changes in current year (“-” for decreases) 17727.00 -16325.76 61887.86 22374153.44 -1983601172.95 -1961163730.41
1. Total comprehensive income 481313654.45 481313654.45
2. Capital increases and decreases by shareholders 17727.00 -16325.76 61887.86 63289.10
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity instruments
(3) Share-based payment attributable to owners’ equity
(4) Others 17727.00 -16325.76 61887.86 63289.10
3. Profit distribution -2464914827.40 -2464914827.40
(1) Appropriation to surplus reserves
(2) Appropriation to general risk reserves -2464914827.40 -2464914827.40
(3) Profit distribution to shareholders
5. Transfers within shareholders’ equity
(1) Capital reserves transferred into paid-in capital (or share capital)
(2) Surplus reserves transferred into paid-in capital (or share capital)
(3) Surplus reserves to recover losses
(4) Net changes of defined contribution plans transferred into retained
earnings
(5) Other comprehensive income transferred into retained earnings
(6) Others
5. Special reserves 22374153.44 22374153.44
(1) Provision of special reserves 30052685.76 30052685.76
(2) Use of special reserves 7678532.32 7678532.32
6. Others
IV. Ending balance of current year 4108209106.00 947866337.87 12852044378.83 22529623.02 1195116522.37 507420573.87 19633186541.96
83Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
III. Company's Basic Information
1. Company Profile
Bengang Steel Plates Co. Ltd. (hereinafter referred to as “Bengang Steel Plates” or “Company” or “theCompany”) was approved by the People's Government of Liaoning Province on March 27 1997 in “Liao Zheng[1997] No. 57”. Benxi Steel and Iron (Group) Co. Ltd. (hereinafter referred to as Benxi Iron and Steel) will be
reorganized with the assets and liabilities of its steelmaking plant preliminary rolling plant and hot continuous
rolling plant in relation to the steel plate business it is a joint stock limited company established on June 27
1997 by issuing domestically listed foreign shares (B shares) by way of public offering.
Approved by the China Securities Regulatory Commission Benxi Iron and Steel Co. Ltd. publicly issued
400000000 B shares on the Shenzhen Stock Exchange on June 10 1997 at an issue price of HK$2.38 per
share. On November 3 1997 it successfully issued 120000000 RMB ordinary shares (A shares) to the public
at an issue price of RMB 5.4 per share. The A shares were listed on the Shenzhen Stock Exchange on January
15 1998. The total share capital is 1136000000 shares. According to the resolutions of the relevantshareholders' meeting of Bengang Steel Plates Co. Ltd. on the shareholding structure reform the “BengangSteel Plates Co. Ltd. shareholding structure reform plan” the State-owned Assets Supervision andAdministration Commission “Reply on Relevant Issues Concerning Bengang Steel Plates Co. Ltd.’s EquitySeparation Reform” Benxi Iron and Steel the only non-tradable state-owned legal person shareholder of
Bengang Steel Plates Co. Ltd. in order to obtain the circulation right of the shares held on 14 March 2006
40800000 of the 616000000 shares of Bengang Steel Plates were paid to shareholders of Bengang Steel
Plates’ A-share tradable shares. The total share capital of Bengang Steel Plates has not changed in this
shareholding reform.On July 6 2006 Benxi Steel Plates obtained the “Zheng Jian Company Zi (2006) No. 126” document issued by
the China Securities Regulatory Commission on June 30 2006.The article approved the issuance of 2 billion RMB ordinary shares by Benxi Iron and Steel to Benxi Iron and
Steel for the acquisition of relevant assets of Benxi Iron and Steel. On the same day Benxi Iron and Steel
obtained the document “Zheng Jian Company Zi (2006) No. 127” issued by the China Securities Regulatory
Commission the article agreed to exempt Benxi Iron and Steel from the obligation of tender offer due to the
acquisition of 2 billion new shares issued by the Company resulting in the number of shares held reaching
2.5752 billion shares (accounting for 82.12% of the Company's total share capital). On August 28 2006 with
the approval of Shenzhen Branch of China Securities Depository and Clearing Co. Ltd. Benxi Steel Plates
completed the registration of the newly issued 2 billion shares and restricted sales of shares. On September 28
2006 the listing procedures for the non-public issuance of new shares of Benxi Steel Plates Co. Ltd. were
approved by the Shenzhen Stock Exchange. The new issue price: 4.6733 yuan / share.Approved by the China Securities Regulatory Commission’s Zhengjian Xuke [2017] No. 1476 Benxi Steel
Plate will issue no more than 739371534 RMB ordinary shares (A shares) in a non-public manner to no more
than 10 issuers. This non-public offering was completed on February 9 2018 and 739371532 shares were
actually issued. The new issue price: 5.41 yuan / share. On August 20 2021 the State-owned Assets
84Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Supervision and Administration Commission of the Liaoning Provincial People's Government (hereinafter
referred to as the Liaoning Provincial SASAC) and Ansteel Group Co. Ltd. (hereinafter referred to as theAnsteel Group) signed the “National Assets Supervision and Administration Commission of the People'sGovernment of Liaoning Province and Ansteel Group Co. Ltd. on the gratuitous transfer of state-owned equityof Bengang Group Co. Ltd.”. According to the agreement the State-owned Assets Supervision and
Administration Commission of Liaoning Province transferred its 51% equity of Bengang Group Co. Ltd.(hereinafter referred to as Bengang Group) to Ansteel Group for free. After the completion of this gratuitous
transfer Ansteel Group will become the controlling shareholder of Bengang Group and Ansteel Group will
indirectly hold 81.07% of the total share capital of Bengang Iron and Steel Plates.As of June 30 2023 the Company has issued a total of 4108214747.00 shares with a registered capital of
RMB 4108214700 yuan. The registered place is No. 16 Renmin Road Pingshan District Benxi City
Liaoning Province. The Company's main business activities are: ferrous metal smelting and rolling processing.The parent company of the Company is Benxi Steel and Iron (Group) Co. Ltd. and the actual controller of the
company is Ansteel Group Co. Ltd.For details about the relevant information of the Company's subsidiaries please refer to “IX. Interests in OtherEntities” in this note.For details of changes in the scope of consolidation during the reporting period please refer to “VIII. Changesin the Scope of Consolidation” in this note.IV. Basis of Preparation of Financial Statements
1. Basis of PreparationThe financial statements are prepared in accordance with the “Accounting Standards for Business Enterprises -Basic Standards” and relevant specific accounting standards application guidance for Accounting Standards for
Business Enterprises interpretations for Accounting Standards for Business Enterprises and other relatedprovisions issued by the Ministry of Finance (hereinafter collectively referred to as “Accounting Standards forBusiness Enterprises”) and “Information Disclosure Rules for Companies of Securities for Public Issuance No.
15 – General Regulations for Financial Statements” issued by the China Securities Regulatory Commission.
2. Going Concern
These financial statements are prepared on going concern basis. The Company has evaluated that it has the
ability to continue operating within 12 months from the end of the reporting period and there are no matters
that cause serious doubts about the ability to continue as going concern.V. Significant Accounting Policies and Accounting Estimates
Notes for specific accounting policies and accounting estimates:
85Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
The following disclosures have covered the specific accounting policies and accounting estimates that are
adopted by the Company based on the actual production and operation characteristics. For details please refer
to Note V.10 Financial instruments V.11 Inventories V.15 Fixed assets V.24 Revenue in this notes.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements have been prepared in compliance with the requirements of the Accounting Standards
for Business Enterprises by the Ministry of Finance to truly and completely present the consolidated and the
parent company’s financial position of the Company as at 30 June 2023 and of the consolidated and the parent
company’s financial performance and cash flows from January to June 2023.
2. Accounting Period
The Company's accounting year is from 1 January to 31 December.
3. Operating Cycle
The Company's operating cycle is 12 months.
4. Functional Currency
The Company adopts RMB as the functional currency.
5. Accounting Treatment of Business Combinations under Common Control and not under Common
Control
Business combination under common control: The assets and liabilities acquired by the merging party in the
business combination (including the goodwill formed by the acquisition of the merged party by the ultimate
controlling party) shall be measured on the basis of the book value of the assets and liabilities of the merged
party on the merger date in the consolidated financial statements of the ultimate controlling party. The
difference between the book value of the net assets obtained in the merger and the book value of the merger
consideration paid (or the total par value of the issued shares) is adjusted to the share premium in the capital
reserve and if the share premium in the capital reserve is not enough to offset the retained earnings are
adjusted.Business combination not under common control: The combination cost is the fair value of the assets paid
liabilities incurred or assumed and equity securities issued by the purchaser in order to obtain the control of the
purchased party on the date of purchase. The Company shall recognize the positive balance between the
combination costs and the fair value of the identifiable net assets it obtains from the acquiree as goodwill. The
Company shall treat the negative balance between the combination costs and the fair value of the identifiable
net assets it obtains from the acquiree into the profits and losses of the current period. The identifiable assets
liabilities and contingent liabilities of the acquiree acquired in the merger that meet the recognition conditions
are measured at fair value on the date of purchase.
86Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
The direct related expenses incurred for the business combination shall be included in the current profit and loss
when incurred. The transaction costs of issuing equity securities or debt securities for business combination
shall be included in the initial recognition amount of equity securities or debt securities.
6. Preparation Method of Consolidated Financial Statements
(1) Scope of consolidation
The scope of consolidation of consolidated financial statements is determined on the basis of control and the
scope of consolidation includes the Company and all subsidiaries. Control means that the company has power
over the investee enjoys variable returns by participating in the relevant activities of the investee and has the
ability to use its power over the investee to affect its return.
(2) Consolidation procedure
The Company regards the entire enterprise group as an accounting entity and prepares consolidated financial
statements in accordance with unified accounting policies to reflect the overall financial status operating results
and cash flow of the enterprise group. The impact of internal transactions between the Company and its
subsidiaries and between subsidiaries shall be offset. If the internal transaction shows that the relevant asset has
an impairment loss the full amount of the loss shall be recognized.If the accounting policy and accounting period adopted by the subsidiary are inconsistent with the Company
necessary adjustments shall be made in accordance with the Company's accounting policy and accounting
period when preparing the consolidated financial statements.Subsidiary owners' equity net profit and loss for the current period and the share of minority shareholders in the
current comprehensive income are listed separately under the owner's equity item in the consolidated balance
sheet the net profit item in the consolidated income statement and the total comprehensive income item. The
current loss shared by the minority shareholders of the subsidiary exceeds the balance formed by the minority
shareholders in the initial owner's equity of the subsidiary offsetting the minority shareholders' equity.
1) Add a subsidiary or business
During the reporting period if a subsidiary or business is added due to a business combination under the same
control the operating results and cash flows of the subsidiary or business combination from the beginning of the
current period to the end of the reporting period shall be included in the consolidated financial statements. At
the same time the opening balance of the consolidated financial statements and the relevant items in the
comparative statements shall be adjusted as if the consolidated reporting entity has always existed since the
time when the ultimate controlling party began to control it.During the reporting period if a subsidiary or business is added due to a business combination not under the
same control it shall be included in the consolidated financial statements from the purchase date on the basis of
the fair value of each identifiable asset liability and contingent liability determined on the purchase date.
2) Disposal of subsidiaries
87Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
* General treatment
When the control of the investee is lost due to the disposal of part of the equity investment or other reasons the
remaining equity investment after disposal shall be remeasured according to its fair value on the date of loss of
control.The difference between the sum of the consideration obtained from the disposal of equity and the fair value of
the remaining equity minus the share of the original subsidiary’s net assets calculated continuously from the
purchase date or the merger date and the sum of goodwill calculated according to the original shareholding ratio
the difference will be included in the investment income of the period when the control right is lost. Other
comprehensive income related to the equity investment of the original subsidiary that can be reclassified into
profit or loss and other changes in owner's equity accounted for under the equity method are converted into
current investment income when control is lost.* Step-by-step disposal of subsidiaries
Where the equity investment in a subsidiary is disposed of step by step through multiple transactions until it
loses control the terms conditions and economic impact of each transaction for disposing of the equity
investment in a subsidiary meet one or more of the following conditions it usually indicates that the multiple
transactions are a package deal:
ⅰ．These transactions were entered into simultaneously or taking into account the mutual influence;
ⅱ．These transactions were entered into simultaneously or taking into account the mutual influence;
ⅲ．The occurrence of one transaction depends on the occurrence of at least one other transaction;
ⅳ．A transaction is not economical alone but it is economical when considered together with other
transactions.If each transaction belongs to a package deal each transaction shall be accounted for as a transaction for
disposing of a subsidiary and losing control; The difference between each disposal price before the loss of
control and the share of the subsidiary's net assets corresponding to the disposal investment is recognized as
other comprehensive income in the consolidated financial statements and is transferred to the current profit and
loss of the loss of control when the control is lost.If each transaction does not belong to a package deal before the loss of control the equity investment of the
subsidiary is partially disposed without losing control; when the control is lost the accounting treatment is
carried out according to the general treatment method for disposing of subsidiaries.
3) Purchase a minority stake in a subsidiary
The difference between the newly acquired long-term equity investment due to the purchase of minority shares
and the share of net assets that should be enjoyed by the subsidiary continuously calculated from the purchase
date or the merger date based on the newly increased shareholding ratio will adjust the share premium in the
88Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
capital reserve in the consolidated balance sheet and if the share premium in the capital reserve is insufficient
to offset the retained earnings will be adjusted.
4) Partial disposal of an equity investment in a subsidiary without loss of control
The difference between the disposal price and the share of the subsidiary’s net assets that has been continuously
calculated since the purchase date or the merger date corresponding to the disposal of the long-term equity
investment will adjust the share premium in the capital reserve in the consolidated balance sheet and if the
share premium in the capital reserve is insufficient to offset the retained earnings will be adjusted.
7. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
Joint arrangements are divided into joint operations and joint ventures.Joint operation refers to a joint venture arrangement in which the joint venture party enjoys the assets related to
the arrangement and assumes the liabilities related to the arrangement.The Company confirms the following items related to the interest share in the joint operation:
(1) Confirm the assets held individually by the Company and the assets jointly held by the Company;
(2) Confirm the liabilities borne by the Company alone and the liabilities jointly borne by the Company;
(3) Recognition of income from the sale of the Company's share of the output of joint operations;
(4) Recognize the income generated by the joint operation from the sale of output according to the share of the
Company;
(5) Confirm the expenses incurred independently and confirm the expenses incurred in joint operation
according to the share of the Company.The Company's investment in joint ventures is accounted for using the equity method. For details please refer
to “V.13 Long-term equity investments” in this note.
8. Determination Criteria for Cash and Cash Equivalents
Cash refers to the Company's cash on hand and deposits that can be used for payment at any time. Cash
equivalents refer to short-term highly liquid investments held by the Company that are easily convertible into
known amounts of cash and have little risk of value change.
89Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
9. Foreign Currency Transactions and Translation of Foreign Currency Financial Statements
(1) Foreign currency business
For foreign currency business the spot exchange rate on the transaction date is used as the conversion rate to
convert the foreign currency amount into RMB for bookkeeping.The balance of foreign currency monetary items on the balance sheet date is translated at the spot exchange rate
on the balance sheet date. The resulting exchange differences except for the exchange differences arising from
foreign currency special loans related to the acquisition and construction of assets eligible for capitalization are
treated in accordance with the principle of capitalization of borrowing costs are included in the current profit
and loss.
(2) Translation of foreign currency financial statements
The asset and liability items in the statement of financial position are converted at the spot exchange rate on the
balance sheet date; the owner's equity items are converted at the spot exchange rate at the time of occurrence
except for “Undistributed profit”. The income and expense items in the statement of profit or loss and other
comprehensive income shall be converted at the spot exchange rate on the transaction date.When disposing of an overseas operation the translation difference of the foreign currency financial statements
related to the overseas operation shall be transferred from the owner's equity item to the current profit and loss
of the disposal.
10. Financial Instruments
When the Company becomes a party to a financial instrument contract it recognizes a financial asset financial
liability or equity instrument.
(1) Classification of financial instruments
According to the Company's business model for managing financial assets and the contractual cash flow
characteristics of financial assets financial assets are classified into: financial assets measured at amortized cost
financial assets measured at fair value through other comprehensive income and financial assets at fair value
through profit or loss.The Company classifies financial assets that meet the following conditions and are not designated as financial
assets at fair value through profit or loss as financial assets at amortized cost:
－ The business model is to collect contractual cash flows;
－ Contractual cash flows are only payments of principal and interest on the principal amount outstanding.
90Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
The Company classifies financial assets that meet the following conditions and are not designated as financial
assets at fair value through profit or loss as financial assets at fair value through other comprehensive income
(debt instruments):
－ The business model aims at both collecting contractual cash flows and selling the financial asset;
－ Contractual cash flows are only payments of principal and interest on the principal amount outstanding.For non-trading equity instrument investments the Company can irrevocably designate them as financial assets
(equity instruments) measured at fair value and whose changes are included in other comprehensive income at
the time of initial recognition. The designation is made on an individual investment basis and the underlying
investment meets the definition of an equity instrument from the perspective of the issuer.Except for the above financial assets measured at amortized cost and at fair value through other comprehensive
income the Company classifies all other financial assets as financial assets at fair value through profit or loss.Financial liabilities are classified at initial recognition into: financial liabilities at fair value through profit or
loss and financial liabilities at amortized cost.Financial liabilities that meet one of the following conditions can be designated as financial liabilities at fair
value through profit or loss at the time of initial measurement:
1) Financial liabilities that meet one of the following conditions can be designated as financial liabilities at fair
value through profit or loss at the time of initial measurement:
2) According to the corporate risk management or investment strategy stated in formal written documents
manage and evaluate the performance of financial liability portfolios or financial assets and financial liability
portfolios based on fair value and report to key management personal within the Company on this basis.
3) This financial liability contains embedded derivatives that need to be separated separately.
(2) Recognition basis and measurement method of financial instruments
1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include notes receivable accounts receivable other receivables
long-term receivables debt investments etc. and are initially measured at fair value and relevant transaction
costs are included in the initially recognized amount; excluding that the accounts receivable of the major
financing component and the accounts receivable of the financing component that the Company decides not to
consider for no more than one year shall be initially measured at the contract transaction price.The interest calculated using the effective interest rate method during the holding period is included in the
current profit and loss.When recovering or disposing the difference between the price obtained and the book value of the financial
asset is included in the current profit and loss.
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2) Financial assets at fair value through other comprehensive income (debt instruments)
Financial assets (debt instruments) measured at fair value and whose changes are included in other
comprehensive income include receivables financing other debt investments etc. and are initially measured at
fair value and relevant transaction costs are included in the initial recognition amount. The financial assets are
subsequently measured at fair value and changes in fair value are included in other comprehensive income
except for interest calculated using the effective interest rate method impairment losses or gains and exchange
gains and losses.When derecognition is terminated the accumulated gains or losses previously included in other comprehensive
income are transferred out of other comprehensive income and included in current profit and loss.
3) Financial assets (equity instruments) measured at fair value through other comprehensive income
Financial assets (equity instruments) measured at fair value through other comprehensive income including
other equity instrument investments are initially measured at fair value and relevant transaction costs are
included in the initially recognized amount. The financial assets are subsequently measured at fair value and
changes in fair value are included in other comprehensive income. Dividends obtained are included in current
profit and loss.When derecognition is terminated the accumulated gains or losses previously included in other comprehensive
income are transferred out of other comprehensive income and included in retained earnings.
4) Financial assets measured at fair value through profit or loss
Financial assets measured at fair value through profit or loss include transactional financial assets derivative
financial assets and other non-current financial assets etc. and are initially measured at fair value and relevant
transaction costs are included in current profit or loss. The financial assets are subsequently measured at fair
value and changes in fair value are included in current profit and loss.
5) Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value and whose changes are included in current profit and loss include
trading financial liabilities and derivative financial liabilities etc. and are initially measured at fair value and
relevant transaction costs are included in current profit and loss. The financial liabilities are subsequently
measured at fair value and changes in fair value are included in current profit and loss.When derecognition is terminated the difference between its book value and the consideration paid is included
in the current profit and loss.
6) Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost include short-term loans notes payable accounts payable other
payables long-term loans bonds payable and long-term payables and are initially measured at fair value and
relevant transaction costs are included in the initial recognition amount.
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The interest calculated using the effective interest rate method during the holding period is included in the
current profit and loss.When derecognition is terminated the difference between the consideration paid and the book value of the
financial liability is included in the current profit and loss.
(3) Derecognition of financial assets and transfer of financial assets
When one of the following conditions is met the Company derecognizes financial assets:
－ Termination of contractual rights to receive cash flows from financial assets;
－ The financial asset has been transferred and almost all the risks and rewards of ownership of the financial
asset have been transferred to the transferee;
－ The financial assets have been transferred. Although the Company neither transfers nor retains almost all the
risks and rewards of ownership of the financial assets it does not retain control over the financial assets.When a financial asset is transferred if almost all the risks and rewards of ownership of the financial asset are
retained the financial asset will not be derecognized.When judging whether the transfer of financial assets meets the above conditions for derecognition of financial
assets the principle of substance over form is adopted. The Company distinguishes the transfer of financial
assets into the transfer of financial assets as a whole and the transfer of parts. If the overall transfer of financial
assets meets the conditions for derecognition the difference between the following two amounts shall be
included in the current profit and loss:
1) The book value of the financial asset transferred;
2) The consideration received due to the transfer and the cumulative amount of changes in fair value that were
originally included in the owner’s equity (if the financial asset involved in the transfer is a financial asset (debt
instrument) that is measured at fair value and whose changes are included in other comprehensive income).If the partial transfer of financial assets meets the conditions for derecognition the overall book value of the
transferred financial assets shall be apportioned between the derecognized part and the unterminated part
according to their respective relative fair values and the difference between the following two amounts shall be
included in current profit and loss:
1) The book value of the derecognized portion;
2) The consideration for the derecognition part and the amount corresponding to the derecognition part of the
accumulative amount of fair value changes that were originally included in the owner’s equity (the financial
assets involved in the transfer are financial assets that are measured at fair value and whose changes are
included in other comprehensive income ( in the case of debt instruments)).
93Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
If the transfer of financial assets does not meet the conditions for derecognition the financial assets shall
continue to be recognized and the consideration received shall be recognized as a financial liability.
(4) Derecognition of financial liabilities
If all or part of the current obligation of a financial liability has been discharged the financial liability or a part
thereof shall be derecognized; if the Company signs an agreement with the creditor to replace the existing
financial liability by assuming a new financial liability and if the contract terms of the new financial liability
and the existing financial liability are substantially different the existing financial liability shall be
derecognized and the new financial liability shall be recognized at the same time.If a substantive modification is made to all or part of the contract terms of an existing financial liability the
existing financial liability or a part thereof shall be derecognized and the financial liability after the modified
terms shall be recognized as a new financial liability.When all or part of a financial liability is derecognized the difference between the book value of the
derecognized financial liability and the consideration paid (including non-cash assets transferred out or new
financial liabilities assumed) is included in the current profit and loss.If the Company repurchases part of the financial liabilities the book value of the financial liabilities as a whole
shall be allocated on the date of repurchase according to the relative fair value of the part that continues to be
recognized and the part that is derecognized. The difference between the book value allocated to the
derecognized part and the consideration paid (including non-cash assets transferred out or new financial
liabilities assumed) is included in the current profit and loss.
(5) Determination of fair value of financial assets and financial liabilities
For financial instruments with an active market their fair value is determined by the quoted price in the active
market. For financial instruments that do not have an active market valuation techniques are used to determine
their fair value. When valuing the Company adopts valuation techniques that are applicable in the current
situation and supported by sufficient available data and other information and select inputs consistent with the
characteristics of assets or liabilities considered by market participants in transactions of related assets or
liabilities and give preference to relevant observable inputs. Use unobservable input values only when the
relevant observable input values are not available or practicable to obtain.
(6) Test method and accounting treatment method for impairment of financial assets
The Company estimates the expected credit losses of financial assets measured at amortized cost financial
assets at fair value through other comprehensive income (debt instruments) and financial guarantee contracts
either individually or in combination.The Company considers reasonable and well-founded information about past events current conditions and
forecasts of future economic conditions and uses the risk of default as the weight to calculate the difference
between the cash flow receivable by the contract and the cash flow expected to be received. The probability-
weighted amount of the present value of the recognized expected credit loss. If the credit risk of the financial
94Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
instrument has increased significantly since the initial recognition the Company shall measure its loss provision
at an amount equivalent to the expected credit loss of the financial instrument throughout its duration. If the
credit risk of the financial instrument has not increased significantly since the initial recognition the Company
shall measure its loss provision at an amount equivalent to the expected credit loss of the financial instrument
within the next 12 months. The resulting increase or reversal of the loss provision is included in the current
profit and loss as an impairment loss or gain.The Company compares the default risk of financial instruments on the balance sheet date with the risk of
default on the initial recognition date to determine the relative change in the default risk of financial instruments
during the expected duration and to assess the credit risk of financial instruments has increased significantly
since initial recognition. Usually overdue for more than 30 days the Company considers that the credit risk of
the financial instrument has increased significantly unless there is conclusive evidence to prove that the credit
risk of the financial instrument has not increased significantly since the initial recognition.If the credit risk of a financial instrument is relatively low on the balance sheet date the Company considers
that the credit risk of the financial instrument has not increased significantly since initial recognition.If there is objective evidence that a certain financial asset has been credit-impaired the Company shall make
provision for impairment of the financial asset on an individual basis. For the accounts receivables and contractassets formed by the transactions regulated by “Accounting Standards for Business Enterprises No. 14 –Revenue” (2017) regardless of whether they contain significant financing components the Company calculates
them according to the expected credit loss equivalent to the entire duration to measure its loss allowance.For lease receivables the Company chooses to measure its loss provision at an amount equivalent to the
expected credit loss during its full lifetime.If the Company no longer reasonably expects that the cash flow of the financial asset contract can be recovered
in whole or in part it will directly write down the book balance of the financial assets.
11. Inventories
(1) Classification and costs of inventories
Inventory is classified into: materials in transit raw materials turnover materials stock goods work in progress
goods delivered and materials for commissioned processing etc.Inventories are initially measured at cost and inventory costs include purchase costs processing costs and other
expenses incurred to bring the inventories to their current location and state.
(2) Valuation method for dispatched inventory
Inventories are priced using the weighted average method when they are dispatched.
95Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(3) Basis for determining the net realizable value of different categories of inventories
On the balance sheet date inventories shall be measured at the lower of cost and net realizable value. When the
cost of inventory is higher than its net realizable value a provision for price of inventory decline shall be made.The net realizable value of inventories refers to the estimated selling price of inventories in ordinary activities
minus the estimated costs to be incurred until completion estimated sales expenses and related taxes.Inventories of finished goods goods in stock and materials for sale etc. which are directly used for sale are
determined by the estimated selling price of the inventory minus the estimated sales expenses and relevant taxes
and fees during the normal production and operation process to determine the net realizable value. Inventory of
materials that need to be processed in the normal production and operation process is determined by the
estimated selling price of the finished product minus the estimated cost to be incurred until completion
estimated sales expenses and related taxes and fees to determine the net realizable value. For inventories held
for the execution of sales contracts or service contracts the net realizable value is calculated based on the
contract price. If the quantity of inventories held exceeds the quantity ordered in the sales contract the net
realizable value of the excess inventory is calculated based on the general sales price.After provision for inventory decline if the factors affecting the reduction of inventory value before have
disappeared resulting in the net realizable value of the inventory being higher than its book value it shall be
reversed within the amount of the original provision for inventory decline and the reversed amount is included
in the current profit and loss.
(4) Inventory system
The Company adopts the perpetual inventory system.
(5) 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.
12. Contract Costs
Contract costs are divided into contract fulfillment costs and contract obtaining costs.If the cost incurred by the Company for the contract fulfillment costs does not fall within the scope of relevant
standards such as inventory fixed assets or intangible assets it shall be recognized as an asset as a contract
fulfillment costs when the following conditions are met:
* The cost is directly related to a current or anticipated contract;
* The cost increases the company's future resources to meet performance obligations;
* The cost is expected to be recoverable.
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If the incremental cost incurred by the Company to acquire the contract is expected to be recoverable it is
recognized as an asset as the cost of obtaining the contract.Assets related to contract costs are amortized on the same basis as the recognition of goods or service revenue
related to the assets; however if the amortization period of contract acquisition costs does not exceed one year
the Company will include them in the current profit and loss when incurred.For assets related to contract costs if the book value is higher than the difference between the following two
items the Company will make provision for impairment for the excess part and recognize it as asset impairment
loss:
1. The remaining consideration expected to be obtained from the transfer of goods or services related to the
asset;
2. The estimated costs to be incurred for the transfer of the related good or service.
If the depreciation factor in the previous period changes later so that the aforementioned difference is higher
than the book value of the asset the Company will reverse the original depreciation provision and include it in
the current profit and loss but the book value of the asset after the reversal shall not exceed the book value of
the asset on the transfer-back date assuming no provision for impairment is made.
13. Long-term Equity Investments
(1) Judgment criteria for joint control and significant influence
Joint control refers to the shared control of an arrangement in accordance with the relevant agreement and the
relevant activities of the arrangement must be unanimously agreed by the parties sharing the control right before
decisions can be made. If the Company and other joint venture parties exercise joint control over the invested
unit and have rights to the net assets of the invested unit the invested unit is a joint venture of the Company.Significant influence refers to the right to participate in the decision-making of the investee's financial and
operating decisions but cannot control or jointly control the formulation of these policies with other parties. If
the Company is able to exert significant influence on the invested unit the invested unit is an associate of the
Company.
(2) Determination of initial investment cost
1) Long-term equity investment formed by business combination
For a long-term equity investment in a subsidiary formed by a business combination under the same control the
initial investment cost of the long-term equity investment shall be the share of the book value of the owner's
equity of the merged party in the consolidated financial statements of the ultimate controlling party on the date
of combination. For the difference between the initial investment cost of long-term equity investment and the
book value of the consideration paid the equity premium in the capital reserve shall be adjusted; if the equity
premium in the capital reserve is insufficient to offset the retained earnings shall be adjusted.
97Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
For a long-term equity investment in a subsidiary formed by a business combination not under the same control
the initial investment cost of the long-term equity investment shall be the combination cost determined on the
purchase date.
2) Long-term equity investment obtained through other means than business combination
For long-term equity investment acquired by cash payment the actual purchase price paid shall be regarded as
the initial investment cost.For long-term equity investment obtained by issuing equity securities the initial investment cost shall be the
fair value of the issued equity securities.
(3) Subsequent measurement and profit or loss recognition method
1) Long-term equity investment accounted for by cost method
The Company's long-term equity investment in subsidiaries is accounted for using the cost method unless the
investment meets the conditions of being held for sale. Except for the price actually paid when acquiring the
investment or the cash dividends or profits that have been declared but not yet distributed included in the
consideration the Company recognizes the current investment income according to the cash dividends or profits
declared by the invested unit.
2) Long-term equity investment accounted for by equity method
Long-term equity investments in associates and joint ventures are accounted for using the equity method. If the
initial investment cost is greater than the difference between the share of the fair value of the identifiable net
assets of the investee that should be enjoyed at the time of investment the initial investment cost of the long-
term equity investment will not be adjusted; The difference between the initial investment cost and the share of
the fair value of the identifiable net assets of the investee that should be enjoyed at the time of investment shall
be included in the current profit and loss and the cost of long-term equity investment shall be adjusted at the
same time.The Company recognizes the investment income and other comprehensive income respectively according to the
share of the net profit or loss and other comprehensive income realized by the invested unit that it should enjoy
or share and adjust the book value of the long-term equity investment at the same time; The book value of the
long-term equity investment shall be correspondingly reduced according to the portion of the profits or cash
dividends declared by the investee to be distributed; For other changes in the owner's equity of the investeeother than net profit and loss other comprehensive income and profit distribution (referred to as “other changesin owner’s equity”) the book value of the long-term equity investment is adjusted and included in the owner's
equity.When confirming the share of the investee's net profit or loss other comprehensive income and other changes in
owner's equity it is based on the fair value of the investee's identifiable net assets when the investment is
obtained and in accordance with the Company's accounting policies and accounting periods. It is confirmed
after adjusting the net profit and other comprehensive income of the invested unit.
98Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
The unrealized profit and loss of internal transactions between the Company and its associates and joint
ventures shall be calculated according to the share attributable to the Company and offset investment income is
recognized on this basis except that the assets invested or sold constitute a business. If the unrealized internal
transaction loss with the invested unit is an asset impairment loss it shall be recognized in full.The Company’s net losses to joint ventures or joint ventures in addition to the obligation to bear additional
losses are limited to zero when the book value of long-term equity investments and other long-term interests
that substantially constitute net investments in joint ventures or joint ventures are reduced to zero. If the joint
venture or associated enterprise realizes net profit in the future the Company shall restore the recognition of the
profit share after the share of the profit makes up for the share of the unrecognized loss.
3) Disposal of long-term equity investment
For the disposal of long-term equity investment the difference between its book value and the actual acquisition
price shall be included in the current profit and loss.If part of the long-term equity investment accounted for by the equity method is disposed of 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 on the same basis as the invested entity’s direct disposal of related assets
or liabilities and shall be carried forward in corresponding proportions changes in other owners' equity are
transferred to the current profit and loss in proportion.If the joint control or significant influence on the invested unit is lost due to the disposal of equity investment
and other reasons other comprehensive income recognized by the original equity investment due to the
adoption of equity method accounting when the equity method of accounting is terminated the accounting
treatment is carried out on the same basis as the investee directly disposing of related assets or liabilities and
other changes in owner's equity are all transferred to the current profit and loss when the equity method of
accounting is terminated.If the control over the invested unit is lost due to the disposal of part of the equity investment etc. when
preparing individual financial statements if the remaining equity can exercise joint control or significant
influence on the invested unit it shall be accounted for using the equity method. And the remaining equity is
deemed to be adjusted using the equity method since it is acquired and other comprehensive income recognized
before obtaining the control of the invested company is carried forward on the same basis as the invested
company's direct disposal of related assets or liabilities. Changes in other owners' equity due to the adoption of
equity method accounting and confirmation are carried forward to the current profit and loss in proportion; If
the remaining equity cannot exercise joint control or exert significant influence on the invested unit it is
recognized as a financial asset. The difference between the fair value and the book value on the date when the
control is lost is included in the current profit and loss and all other comprehensive income and other changes
in owner's equity recognized before obtaining the control of the invested entity are all carried forward.If the equity investment in a subsidiary is disposed of step by step through multiple transactions until the control
is lost if it belongs to a package deal each transaction shall be accounted for as a transaction for disposing of
the equity investment in the subsidiary and losing control; The difference between each disposal price before
the loss of control and the book value of the long-term equity investment corresponding to the disposed equity
99Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
is first recognized as other comprehensive income in the individual financial statements. When the control right
is lost it will be transferred to the current profit and loss of the loss of control right. If it does not belong to a
package deal each transaction shall be accounted for separately.
14. Investment properties
Investment properties refers to properties held for the purpose of earning rent or capital appreciation or both
including leased land use rights land use rights held and prepared to be transferred after appreciation leased
buildings (Including buildings that are built for rent after self-construction or development activities are
completed and buildings that are in the process of being built or developed for future rent).Subsequent expenditures related to investment properties are included in the cost of investment properties when
the relevant economic benefits are likely to flow in and the cost can be measured reliably; otherwise they are
included in the current profit and loss when incurred.The Company adopts the cost model to measure the existing investment properties. The same depreciation
policy as the Company's fixed assets is adopted for the investment properties measured according to the cost
model - buildings for lease and the same amortization policy as for intangible assets is adopted for the land use
right for lease.
15. Fixed Assets
(1) Recognition criteria
Fixed assets refer to tangible assets that are held for the production of goods provision of labor services lease
or operation and management and have a useful life of more than one accounting year.Fixed assets are recognized when the following conditions are met at the same time: 1) The economic benefits
related to the fixed assets are probable to flow into the Company;
2) The cost of the fixed asset can be measured reliably.
Fixed assets are initially measured at cost (and taking into account the impact of estimated disposal costs).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 the cost can be reliably measured; for the replaced part its book
value is derecognized;
All other subsequent expenses are included in the current profit and loss when incurred.
100Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(2) Depreciation method
Category Depreciation method Depreciation period Scrap value rate Annual depreciation (years) (%) rate (%)
Property and plant Average Years Method 5 2.38% 40
Mechanical
equipment Average Years Method 5 3.96%-5.59% 17-24
Transport and other
equipment Average Years Method 5 7.92%-19.00% 5-12
The depreciation of fixed assets is classified and accrued using the average-year method and the depreciation
rate is determined according to the category of fixed assets estimated service life and estimated net residual
value rate. For fixed assets with provision for depreciation the depreciation amount will be determined
according to the book value after deduction of provision for depreciation and the remaining useful life in the
future period. If the service life of each component of the fixed asset is different or it provides economic
benefits to the Company in different ways different depreciation rates or depreciation methods should be
selected to accrue depreciation separately.
(3) Disposal of fixed assets
When a fixed asset is disposed of or it is not expected to generate economic benefits through use or disposal
the fixed asset is derecognized. The income from the sale transfer retirement or damage of fixed assets after
deducting their book value and related taxes and fees is included in the current profit and loss.
16. Construction in Progress
The cost of construction in progress is measured by the actual cost incurred. Actual costs include construction
costs installation costs borrowing costs eligible for capitalization and other necessary expenditures incurred
before the construction in progress reaches the intended usable state. When the construction in progress reaches
the intended usable state it will be transferred to fixed assets and depreciation will be accrued from the next
month.
17. Borrowing Costs
(1) Recognition principles for capitalization of borrowing costs
The borrowing expenses incurred by the Company which can be directly attributable to the purchase
construction or production of assets eligible for capitalization shall be capitalized and included in the cost of
relevant assets; other borrowing expenses shall be recognized as expenses based on the amount incurred when
they occur and shall be calculated and included in current profit and loss.
101Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Assets eligible for capitalization refer to assets such as fixed assets investment real estate and inventories that
require a long period of purchase construction or production activities to reach the intended usable or salable
state.
(2) Period of capitalization of borrowing costs
The capitalization period refers to the period from the start of capitalization of borrowing costs to the cessation
of capitalization excluding the period of suspension of capitalization of borrowing costs.Borrowing costs start to be capitalized when the following conditions are met at the same time:
1) Asset expenditures have occurred and asset expenditures include expenditures incurred in the form of cash
payments transfer of non-cash assets or assumption of interest-bearing debts for the purchase construction or
production of assets eligible for capitalization;
2) Borrowing costs have been incurred;
3) The acquisition construction or production activities necessary to make the asset ready for use or sale have
started.Capitalization of borrowing costs stops when the purchased constructed or produced assets eligible for
capitalization have reached the intended usable or salable state.
(3) Suspension of capitalization period
Capitalization of borrowing costs shall be suspended if the acquisition construction or production process of an
asset eligible for capitalization is interrupted abnormally and the interruption lasts for more than 3 months; If
the interruption is a necessary procedure for the purchased constructed or produced assets eligible for
capitalization to reach the intended usable state or salable state the borrowing costs will continue to be
capitalized. Borrowing costs incurred during the interruption period are recognized as current profit and loss
and the borrowing costs continue to be capitalized after the acquisition and construction of assets or production
activities resume.
(4) Calculation method of borrowing cost capitalization rate and capitalized amount
For special loans borrowed for the purchase construction or production of assets eligible for capitalization the
capitalized amount of borrowing costs is determined by the amount of the borrowing costs actually incurred in
the current period of the special borrowing minus the interest income obtained by depositing the unused
borrowing funds in the bank or the investment income obtained from the temporary investment.For general borrowings used for the acquisition construction or production of assets eligible for capitalization
calculate and determine the amount of borrowing costs that should be capitalized for general borrowings by
multiplying the weighted average of asset expenditures that exceed the portion of special borrowings multiplied
by the capitalization rate of general borrowings. The capitalization rate is determined based on the weighted
average actual interest rate of general borrowings.
102Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
During the capitalization period the exchange difference between the principal and interest of foreign currency
special loans shall be capitalized and included in the cost of assets eligible for capitalization. The exchange
difference arising from the principal and interest of other foreign currency loans other than foreign currency
special loans is included in the current profit and loss.
18. Intangible Assets
(1) Measurement method useful life impairment test
A. Valuation method of intangible assets
1) Initially measured at cost when the Company acquires intangible assets
The cost of purchased intangible assets includes the purchase price relevant taxes and other expenditures that
are directly attributable to making the asset reach its intended use.
2) Subsequent measurement
When acquiring intangible assets analyze and judge their service life.For intangible assets with limited service life they are amortized within the period of bringing economic
benefits to the enterprise; if the period of intangible assets bringing economic benefits to the enterprise cannot
be foreseen they are regarded as intangible assets with indefinite service life and shall not be amortized.B. Estimated useful life of intangible assets with limited useful life
Item Expected useful Basis for expected life Amortization method Residual rate useful life
Land use rights 50 years Average age method 0 Land use right certificate
C. Judgment basis for intangible assets with indefinite useful life and procedures for reviewing their
useful life
As of the end of the reporting period the Company had no intangible assets with indefinite useful life.
(2) Accounting policy for internal research and development expenditures
A. Specific criteria for dividing the research phase and development phase
The Company's internal research and development project expenditures are divided into research phase
expenditures and development phase expenditures.Research phase: The phase of original planned investigation and research activities to acquire and understand
new scientific or technical knowledge etc.
103Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Development stage: Before commercial production or use research results or other knowledge are applied to a
certain plan or design to produce new or substantially improved materials devices products etc.B. Development phase expenditures qualify for capitalization specific conditions
Expenditures in the research stage are included in the current profit and loss when incurred. Expenditures in the
development stage that meet the following conditions at the same time are recognized as intangible assets and
expenditures in the development stage that cannot meet the following conditions are included in the current
profit and loss:
1) It is technically feasible to complete the intangible asset so that it can be used or sold;
2) It has the intention to complete the intangible asset and use or sell it;
3) The way intangible assets generate economic benefits including the ability to prove that there is a market for
the products produced by using the intangible asset or the intangible asset itself has a market and if the
intangible asset will be used internally it can prove its usefulness;
4) Have sufficient technical financial and other resource support to complete the development of the intangible
asset and have the ability to use or sell the intangible asset;
5) The expenditure attributable to the development stage of the intangible asset can be reliably measured.
19. Impairment of Long-term Assets
For long-term equity investment investment real estate measured by the cost model fixed assets construction
in progress right-of-use assets intangible assets with limited service life oil and gas assets and other long-term
assets if there is any sign of impairment on the balance sheet date an impairment test is required. If the results
of the impairment test show that the recoverable amount of the asset is lower than its book value the difference
shall be recognized as an impairment provision and included in the impairment loss. The recoverable amount is
the higher of the net amount of the asset's fair value minus disposal costs and the present value of the estimated
future cash flow of the asset. Asset impairment provision is calculated and confirmed on the basis of individual
assets. If it is difficult to estimate the recoverable amount of a single asset the recoverable amount of the asset
group is determined based on the asset group to which the asset belongs. An asset group is the smallest
combination of assets that can independently generate cash inflows.For goodwill formed by business combination intangible assets with indefinite useful life and intangible assets
that have not yet reached the usable state regardless of whether there is any sign of impairment an impairment
test shall be conducted at least at the end of each year.The Company carries out the goodwill impairment test and the book value of the goodwill formed by the
business combination shall be apportioned to the relevant asset groups according to a reasonable method from
the date of purchase. If it is difficult to allocate to the relevant asset group it shall be allocated to the relevant
asset group combination. The related asset group or asset group combination is the asset group or asset group
combination that can benefit from the synergistic effect of the business combination.
104Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
When performing an impairment test on the relevant asset group or combination of asset groups containing
goodwill if there is any sign of impairment in the asset group or combination of asset groups related to
goodwill first perform an impairment test on the asset group or combination of asset groups that does not
contain goodwill calculate the recoverable amount and compare it with the relevant book value to confirm the
corresponding impairment loss. Then conduct an impairment test on the asset group or asset group combination
containing goodwill compare its book value with the recoverable amount if the recoverable amount is lower
than the book value the amount of the impairment loss shall first be deducted from the book value of the
goodwill apportioned to the asset group or asset group combination then according to the proportion of the
book value of other assets except goodwill in the asset group or asset group combination the book value of
other assets shall be offset in proportion. Once the above asset impairment loss is confirmed it will not be
reversed in the subsequent accounting period.
20. Long-term Deferred Expenses
Long-term deferred expenses refer to various expenses that have occurred but should be borne by the current
and subsequent periods with an amortization period of more than one year.Long-term deferred expenses are amortized evenly during the beneficiary period.
21. Contract Liabilities
The Company presents contract assets or contract liabilities in the balance sheet according to the relationship
between performance obligations and customer payments. The Company has received or receivable the
customer's consideration and the obligation to transfer goods or provide services to the customer is listed as
contract liabilities. Contract assets and contract liabilities under the same contract are presented on a net basis.
22. Employee Benefits
(1) Accounting treatment of short-term employee benefits
During the accounting period when employees provide services to the Company the Company recognizes the
actual short-term remuneration as a liability and includes it in the current profit and loss or related asset costs.The social insurance premiums and housing provident funds paid by the Company for employees as well as
labor union funds and employee education funds drawn according to regulations are paid according to
regulations during the accounting period when employees provide services to the Company. The accrual basis
and accrual ratio are calculated to determine the corresponding amount of employee remuneration.The employee welfare expenses incurred by the Company are included in the current profit and loss or the cost
of related assets according to the actual amount when they actually occur. Among them non-monetary benefits
are measured at fair value.
105Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(2) Accounting treatment of post-employment benefits
1) Defined contribution plans
The Company pays the basic endowment insurance and unemployment insurance for employees according to
the relevant regulations of the local government. During the accounting period when the employees provide
services to the Company the amount payable is calculated according to the payment base and proportion
stipulated by the local government recognized as liabilities and included in current profit or loss or related
asset cost. In addition the Company also participates in the enterprise annuity plan/supplementary pension
insurance fund approved by the relevant state departments. The Company pays premiums to the annuity
plan/local social insurance agency according to a certain percentage of the total salary of employees and the
corresponding expenditure is included in the current profit and loss or the cost of related assets.
2) Defined benefit plans
The Company has no defined benefit plan.
(3) Accounting treatment of termination benefits
If the Company provides termination benefits to employees the employee salary liabilities arising from the
termination benefits shall be recognized on the earlier of the following two dates and included in the current
profit and loss: when the Company cannot unilaterally withdraw the termination benefits provided due to the
termination of labor relationship plans or layoff proposals; when the Company recognizes costs or expenses
associated with a restructuring involving the payment of termination benefits.
23. Provisions
When the obligations related to contingencies meet the following conditions at the same time the Company will
recognize them as provision:
1) The obligation is a present obligation of the Company;
2) It is probable that the performance of the obligation will result in an outflow of economic benefits from the
Company;
3) The amount of the obligation can be measured reliably.
Estimated liabilities are initially measured based on the best estimate of the expenditure required to fulfill the
relevant current obligations.
106Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
When determining the best estimate factors such as risks uncertainties and time value of money related to
contingencies shall be considered comprehensively. If the time value of money has a significant impact the best
estimate is determined after discounting the relevant future cash outflows.If there is a continuous range of required expenditures and the possibility of occurrence of various outcomes
within this range is the same the best estimate shall be determined according to the median value within the
range; in other cases the best estimate shall be dealt with in the following situations:
* If a contingency involves a single item it shall be determined according to the most likely amount;
* If a contingency involves multiple projects it shall be calculated and determined according to various
possible results and related probabilities.If all or part of the expenditure required to pay off the estimated liability is expected to be compensated by a
third party the compensation amount shall be recognized as an asset separately when it is basically confirmed
that it can be received and the confirmed compensation amount shall not exceed the book value of the
estimated liability.The Company shall review the book value of estimated liabilities on the balance sheet date. If there is
conclusive evidence that the book value cannot reflect the current best estimate the book value shall be adjusted
according to the current best estimate.
24. Revenue
(1) Accounting policies adopted for revenue recognition and measurement
The Company recognizes revenue when the Company fulfills the performance obligations in the contract that is
when the customer obtains control over the relevant goods or services. Obtaining the right to control the
relevant goods or services refers to being able to dominate the use of the goods or services and obtain almost all
economic benefits from them.If the contract contains two or more performance obligations the Company will allocate the transaction price to
each individual performance obligation in accordance with the relative proportion of the stand-alone selling
price of the goods or services promised by each individual performance obligation on the inception date of the
contract. The Company measures revenue based on the transaction price allocated to each individual
performance obligation.The transaction price refers to the amount of consideration to which the Company is expected to be entitled for
the transfer of goods or services to the customer excluding amounts collected on behalf of third parties and
amounts expected to be refunded to the customer. The Company determines the transaction price in accordance
with the terms of the contract and in combination with its previous practices and when determining the
transaction price it takes into account the influence of factors such as variable consideration significant
financing components in the contract non-cash consideration and consideration payable to customers. The
Company determines the transaction price including the variable consideration at an amount that does not
exceed the amount that the accumulated recognized revenue is unlikely to be significantly reversed when the
107Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
relevant uncertainties are eliminated. If there is a significant financing component in the contract the Company
determines the transaction price based on the amount payable in cash when the customer obtains the control of
the goods or services and uses the actual interest rate method to amortize the difference between the transaction
price and the contract consideration during the contract period.If one of the following conditions is met the performance obligation shall be fulfilled within a certain period of
time; otherwise the performance obligation shall be fulfilled at a certain point in time:
*The customer obtains and consumes the economic benefits brought by the Company's performance at the same
time as the Company's performance of the contract.*The customer is able to control the goods under construction during the Company's performance.*The goods produced by the Company during the performance of the contract have irreplaceable uses and the
Company has the right to collect payment for the performance part that has been completed so far during the
entire contract period.For performance obligations fulfilled within a certain period of time the Company recognizes revenue
according to the progress of the performance within that period of time except that the progress of the
performance of the contract cannot be reasonably determined. The Company considers the nature of the goods
or services and adopts the output method or input method to determine the performance progress. When the
performance progress cannot be reasonably determined and the incurred costs are expected to be compensated
the Company shall recognize the revenue according to the incurred cost amount until the performance progress
can be reasonably determined.For performance obligations fulfilled at a certain point in time the Company recognizes revenue at the point in
time when the customer obtains control over the relevant goods or services. When judging whether the
customer has obtained control of the goods or services the Company considers the following signs:
* The Company has the current right to receive payment for the goods or services that is the customer has a
current payment obligation for the goods or services.* The Company has transferred the legal title to the product to the customer that is the customer already has
the legal title to the product.* The Company has transferred the product to the customer in kind that is the customer has taken
possession of the product in kind.* The Company has transferred the main risks and rewards of the ownership of the commodity to the
customer that is the customer has obtained the main risks and rewards of the ownership of the commodity.* The customer has accepted the good or service etc.Contracts for the sale of goods between companies and customers often contain only performance obligations
for the transfer of goods or services such as steel. Such performance obligations are performance obligations
performed at a certain point in time and the Company recognizes revenue at the point in time when the
108Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
customer obtains control over the relevant goods or services. When judging whether the customer has obtained
control of the goods or services the Company considers the following signs: the Company obtains the current
right to collect the goods the legal ownership of the goods is transferred to the customer the physical assets of
the goods are transferred to the customer the Company transfers the main risks and rewards of the ownership of
the goods to the customer and the customer has accepted the goods.
25. Government Grants
(1) Categories
Government grants are monetary assets or non-monetary assets obtained by the Company from the government
for free. It is divided into government grants related to assets and government grants related to income.Asset-related government grants refer to government grants obtained by the Company for purchase and
construction or to form long-term assets in other ways. Government grants related to income refer to
government grants other than government grants related to assets.The Company classifies government grants as assets-related specific criteria: government grants obtained by the
enterprise and used to purchase and construct or form long-term assets in other ways.The specific criteria for the Company to classify government grants as income-related are: government grants
with specified grant targets other than asset-related government grants.For government documents that do not clearly specify the grants object the Company's judgment basis for
classifying the government grants as asset-related or income-related is as follows: for those that can form long-
term assets the part of the government grants corresponding to the asset value shall be regarded as the
government grants related to assets and the rest shall be regarded as the government grants related to income; if
it is difficult to distinguish the government grants as a whole shall be regarded as the government grants related
to income.
(2) Timing of recognition
The Company's asset-related government grants are recognized when the government grants are actually
received and the deferred income is evenly amortized and transferred to the current profit and loss according to
the expected service life of the long-term assets from the time the long-term assets are available for use.The Company’s government grants related to income are recognized at the following points: if the government
grants are actually received and used to compensate the Company’s related expenses or losses in the future it
will be included in the current non-operating income during the period when the relevant expenses are
confirmed; if it is used to compensate the relevant expenses or losses incurred by the Company it shall be
directly included in the non-operating income of the current period when it is obtained.
109Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(3) Accounting treatment
Government grants related to assets are offset against the book value of related assets or recognized as deferred
income. If it is recognized as deferred income it shall be included in the current profit and loss in stages in a
reasonable and systematic manner within the useful life of the relevant assets (if it is related to the Company's
ordinary activities it will be included in other income; if it is not related to the Company's ordinary activities it
will be included in non-operating income).Government grants related to income which are used to compensate the relevant costs or losses of the
enterprise in the future period shall be recognized as deferred income and shall be included in the current profit
and loss during the period when the relevant costs or losses are recognized (if it is related to the Company's
ordinary activities it will be included in other income; if it is not related to the Company's ordinary activities it
will be included in non-operating income) or offset related costs or losses; If it is used to compensate the
relevant costs or losses incurred by the Company it shall be directly included in the current profit and loss (if it
is related to the Company's ordinary activities it will be included in other income; if it is not related to the
Company's ordinary activities it will be included in non-operating income) or offset related costs or losses.The policy-based preferential loan interest discount obtained by the Company is divided into the following two
situations and the accounting treatment is carried out separately:
1) If the finance department allocates interest discount funds to the lending bank and the lending bank provides
loans to the Company at a preferential policy rate the Company takes the actual amount of the loan received as
the entry value of the loan and calculates it based on the principal of the loan and the policy preferential rate
related borrowing costs.
2) If the finance department directly allocates the interest discount funds to the Company the Company will
offset the corresponding borrowing costs with the corresponding discount interest.
26. Deferred Tax Assets / Deferred Tax Liabilities
Income tax includes current income tax and deferred tax. Except for the income tax arising from business
mergers and transactions or events that are directly included in owner's equity (including other comprehensive
income) the Company includes current income tax and deferred tax in current profit and loss.Deferred tax assets and deferred tax liabilities are calculated and recognized based on the difference (temporary
difference) between the tax basis of assets and liabilities and their book value.Deferred tax assets recognized for deductible temporary differences shall be limited to the amount of taxable
income that is likely to be obtained in the future to offset the deductible temporary differences. For the
deductible losses and tax credits that can be carried forward to the following years the corresponding deferred
tax assets are recognized within the limit of the future taxable income that is likely to be used to offset the
deductible losses and tax credits .For taxable temporary differences except for special circumstances deferred income tax liabilities are
recognized.
110Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
The special circumstances that do not recognize deferred tax assets or deferred tax liabilities include:
* Initial recognition of goodwill;
* Transactions or events that are neither business combinations nor affect accounting profits and taxable
income (or deductible losses) when they occur.For taxable temporary differences related to investments in associates and joint ventures deferred tax liabilities
are recognized unless the Company is able to control the timing of the reversal of the temporary difference and
the temporary difference is likely not to be transferred back in the foreseeable future. For the deductible
temporary difference related to the investment in associates and joint ventures when the temporary difference is
likely to be reversed in the foreseeable future and the taxable income used to offset the deductible temporary
difference is likely to be obtained in the future the deferred tax assets are recognized.On the balance sheet date the deferred tax assets and deferred tax liabilities shall be 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 paid off in accordance with the provisions of the tax law.On the balance sheet date the Company reviews the book value of the deferred tax assets. If it is likely that
sufficient taxable income will not be obtained in the future to offset the benefits of the deferred tax asset the
book value of the deferred tax asset shall be written down. When it is probable that sufficient taxable income
will be obtained the reduced amount shall be reversed.When there is a legal right to settle on a net basis and there is an intention to settle on a net basis or to obtain
assets and pay off liabilities simultaneously the current income tax assets and current income tax liabilities are
presented as the net amount after offsetting.On the balance sheet date the deferred income tax assets and deferred income tax liabilities are presented as the
net amount after offsetting when the following conditions are met at the same time:
* The taxpayer has the legal right to settle the current income tax assets and current income tax liabilities on
a net basis;
* Deferred tax assets and deferred tax liabilities are related to the income tax levied on the same taxpayer by
the same tax collection authority or to different taxpayers but each important deferred tax asset and liability
will be reversed in the future the taxpayers involved intend to settle the current income tax assets and liabilities
on a net basis or acquire assets and pay off liabilities at the same time.
111Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
27. Leases
(1) Accounting Treatment for Operating Leases
Accounting Policy from 1 January 2021
* Lease refers to a contract in which the lessor transfers the right to use an asset to the lessee for
consideration within a certain period of time. On the inception date of the contract the Company
assesses whether the contract is or contains a lease. A contract is or contains a lease if one party to the
contract transfers the right to control the use of one or more identified assets for a period of time in
exchange for consideration.* If the contract contains multiple separate leases at the same time the Company will split the contract
and conduct accounting treatment for each separate lease separately. If the contract contains both lease
and non-lease parts the lessee and lessor will separate the lease and non-lease parts.* For rental concessions such as rent reductions deferred payments etc. directly caused by the COVID-
19 Epidemic the Company adopts a simplified method for all lease options and does not evaluate
whether there is a lease change and lease classification will not be reassessed if the following
conditions are met at the same time:
* The lease consideration after the concession is reduced or basically unchanged from that before the
concession and the lease consideration can be undiscounted or discounted at the discount rate before
the concession;
* The concession is only for the lease payments payable before 30 June 30 2022. An increase in the lease
payments payable after 30 June 2022 does not affect the fulfillment of this condition and a decrease in
the lease payments payable after 30 June 30 2022 does not meet this condition;
* After comprehensive consideration of qualitative and quantitative factors it is determined that there is
no significant change in other terms and conditions of the lease.
1) The Company acts as the lessee
* Right-of-use assets
On the commencement date of the lease term the Company recognizes right-of-use assets 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;
* For the lease payment paid on or before the start date of the lease term if there is a lease incentive the
relevant amount of the lease incentive already enjoyed shall be deducted;
* Initial direct costs incurred by the Company;
* The cost expected to be incurred by the Company for dismantling and removing the leased asset
restoring the site where the leased asset is located or restoring the leased asset to the state stipulated in
the lease terms. However costs incurred for the production of inventories are not included.
112Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
The Company subsequently adopts 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 when the lease term expires the
Company shall accrue depreciation within the remaining useful life of the leased asset. Otherwise the leased
asset is depreciated over the shorter period of the lease term or 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
stated in “V. (19) Impairment of Long-term Assets” in this note and conducts accounting treatment for the
identified impairment loss.* Lease liability
On the commencement date of the lease term the Company recognizes lease liabilities for leases other than
short-term leases and low-value asset leases. The lease liability is initially measured at the present value of the
unpaid lease payments. Lease payments include:
* Fixed payments (including substantive fixed payments) if there is a lease incentive deduct the relevant
amount of the lease incentive;
* Variable lease payments that depend on an index or rate;
* The amount expected to be paid according to the residual value of the guarantee provided by the
Company;
* The exercise price of the option to purchase if the Company is reasonably certain that the option will
be exercised;
* Amounts payable for exercising the option to terminate the lease provided the term of the lease reflects
the exercise of the option to terminate the lease.The Company uses the lease implicit interest rate as the discount rate but if the lease implicit interest rate
cannot be reasonably determined the Company's incremental borrowing rate is used as the discount rate.The Company calculates the interest expense of the lease liability in each period of the lease period according to
the 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 current
profit or loss or related asset costs when they actually occur. After the start date of the lease term if the
following circumstances occur the Company will remeasure the lease liability and adjust 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 is included in the current profit and loss:
* When the evaluation results of the purchase option lease renewal option or termination option change
or the actual exercise of the aforementioned options is inconsistent with the original evaluation results
the Company will use the lease payment amount after the change and the revised discount rate to
calculate the present value and remeasure the lease liability;
* When the actual fixed payment amount changes the estimated payable amount of the residual value of
the guarantee changes or the index or ratio used to determine the lease payment changes the Company
recalculates the present value based on the changed lease payment amount and the original discount
113Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
rate and measure the lease liability. However where changes in lease payments arise from changes in
floating interest rates a revised discount rate is used to calculate the present value.* Short-term leases and leases of low-value assets
The Company chooses not to recognize right-of-use assets and lease liabilities for short-term leases and low-
value asset leases and includes 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 with a lease term
of no more than 12 months on the commencement date of the lease term and does not include the option to
purchase. Lease of low-value assets refers to a lease with a relatively low value when the single leased asset is a
brand new asset. Where a company subleases or expects to sublease leased assets the original lease does not
belong to low-value asset leases.* Lease change
If the lease is changed and the following conditions are met at the same time the Company will account for the
lease change as a separate lease:
* The lease modification expands the scope of the lease by increasing the use rights of one or more
leased assets;
* The increased consideration is equal to the individual price of the extended part of the leased scope
after adjustment according to the conditions of the contract.If the lease change is not accounted for as a separate lease on the effective date of the lease change the
Company re-allocates the consideration of the changed contract re-determines the lease term and calculates the
cash value based on the changed lease payment and the revised discount rate to remeasure the lease liability.If the change of the lease results in a reduction in the scope of the lease or a shortening of the lease term the
Company shall reduce the book value of the right-of-use asset accordingly and include the relevant gains or
losses related to the partial or complete termination of the lease in the current profit and loss. If other lease
changes lead to the remeasurement of lease liabilities the Company shall adjust the book value of the right-of-
use asset accordingly.* Rent concessions related to COVID-19 epidemic
For those who adopt the simplified method of rent reduction related to the COVID-19 epidemic the Company
will not evaluate whether there is a lease change and continue to calculate the interest expense of the lease
liability at the same discount rate as before the reduction and include it in the current profit and loss. The right-
of-use asset is depreciated in the same way as before. In the event of rent reduction or exemption the Company
will use the reduced or exempt rent as the variable lease payment and when the original rent payment
obligation is terminated by reaching a reduction agreement the discounted amount at the undiscounted or pre-
reduction discount rate will be used to offset the cost of the relevant assets or expenses and adjust the lease
liabilities accordingly; if the rent payment is deferred the Company will offset the lease liabilities recognized in
the previous period when the actual payment is made.
114Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
For short-term leases and leases of low-value assets the Company will continue to include the original contract
rent in the cost or expense of the relevant assets in the same way as before the reduction. In case of rent
reduction or exemption the Company will use the reduced rent as the variable lease payment and offset the
cost or expenses of related assets during the reduction or exemption period. The payables confirmed in the
previous period are deducted when the actual payment is made.
2) The Company acts as the lessor
On the commencement date of the lease the Company classifies leases into finance leases and operating leases.Finance lease refers to a lease that substantially transfers almost all the risks and rewards related to the
ownership of the leased asset regardless of whether the ownership is ultimately transferred. Operating leases
refer to leases other than finance leases. When the Company acts as the lessor of the sublease it classifies the
sublease based on the right-of-use assets arising from the original lease.Accounting for operating lease
The lease receipts from operating leases are recognized as rental income on a straight-line basis during each
period of the lease term. The Company capitalizes the initial direct expenses related to operating leases and
amortizes them in the current profit and loss on the same basis as the recognition of rental income during the
lease period. Variable lease payments not included in lease receipts are included in current profit or loss when
actually incurred. If the operating lease is changed the Company will take it as a new lease for accounting
treatment from the effective date of the change and the pre-receipt or receivable lease receipts related to the
lease before the change will be regarded as the receipts of the new lease.
(2) Accounting Treatment of Finance Lease
1) Accounting treatment of finance lease
On the commencement date of the lease the Company recognizes the finance lease receivable for the finance
lease and derecognizes the finance lease assets. When the Company initially measures the receivable finance
lease it takes the net lease investment as the entry value of the finance lease receivable. The net lease
investment is the sum of the unguaranteed residual value and the present value of the unreceived lease receipts
at the commencement date of the lease period discounted at the interest rate implicit in the lease.The Company calculates and recognizes the interest income in each period of the lease term according to the
fixed periodic interest rate. The derecognition and impairment of finance lease receivables shall be accounted
for in accordance with “V.10 Financial Instruments” in this note.Variable lease payments that are not included in the measurement of net lease investment are included in
current profit or loss when they actually occur.If the financial lease is changed and meets the following conditions at the same time the Company shall treat
the change as a separate lease for accounting treatment:
* The change expands the scope of the lease by adding the right to use one or more of the leased assets;
115Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
* The increased consideration is equal to the individual price of the expanded part of the leased scope after
adjustment according to the conditions of the contract.If the modification of the financial lease is not accounted for as a separate lease the Company handles the
modified lease according to the following circumstances:
* If the change takes effect on the lease commencement date the lease will be classified as an operating
lease and the Company will account for it as a new lease from the lease change effective date and the
lease investment net amount before the lease change becomes effective as the lease the book value of the
asset;
* If the change takes effect on the lease commencement date the lease will be classified as a finance lease
and the Company will conduct accounting treatment in accordance with the policy on modifying or
renegotiating the contract in “V.10 Financial Instruments” in this note.
2) Rent concessions related to COVID-19 Epidemic
* For operating leases that adopt the simplified method of rent reduction related to the COVID-19 Epidemic
the Company will continue to recognize the original contract rent as lease income in accordance with the
method before the reduction. The amount of payment shall be offset against the rental income during the
reduction or exemption period; if the rent is deferred the Company shall recognize the rent payable as an
account receivable during the original collection period and offset the previously confirmed account
receivable when it is actually received.* For financial leases that adopt the simplified method of rental concessions related to the COVID-19
epidemic the Company continues to calculate interest at the same discount rate as before the concession
and recognize it as lease income. In the event of rent reduction or exemption the Company will use the
reduced or exempt rent as the variable lease payment and when the right to collect the original rent is
waived after reaching a concession agreement the discounted amount at the undiscounted or pre-reduction
discount rate will offset the originally recognized lease income the part that is not enough to be offset is
included in investment income and the financial lease receivables are adjusted accordingly; if the rent is
deferred the Company will offset the financial lease receivables confirmed in the previous period when it
is actually received.
(3) Sale and leaseback transactions
The Company evaluates and determines whether the asset transfer in the sale and leaseback transaction is a sale
in accordance with the principles stated in “V.24 Revenue” in this note.
1) As lessee
If the asset transfer in the sale-and-leaseback transaction is a sale the Company as the lessee measures the
right-of-use asset formed by the sale-and-leaseback based on the part of the book value of the original asset
related to the right to use acquired by the leaseback and recognize the relevant gain or loss only for the rights
assigned to the lessor; If the asset transfer in the sale-and-leaseback transaction is not a sale the Company as
116Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
the lessee shall continue to recognize the transferred asset and at the same time recognize a financial liabilityequal to the transfer income. For the accounting treatment of financial liabilities please refer to “V.10 FinancialInstruments" in this note.
2) As lessor
If the asset transfer in the sale-and-leaseback transaction is a sale the Company as the lessor conducts
accounting treatment for the asset purchase and conducts accounting treatment for the asset lease in accordance
with the policy of "2. The Company as the lessor; If the transfer of assets in a sale-and-leaseback transaction is
not a sale the Company as the lessor does not recognize the transferred asset but recognizes a financial assetequal to the transfer income. For the accounting treatment of financial assets please refer to “V.10 FinancialInstruments” in this note.Accounting Policies Before January 1 2021
Leases are divided into finance leases and operating leases. A financial lease is a lease that substantially
transfers all the risks and rewards associated with ownership of an asset. Operating leases are leases other than
finance leases.For rental concessions such as rent reductions and deferred payments that are directly triggered by the new
crown pneumonia epidemic and reached on existing lease contracts if the following conditions are met at the
same time the Company applies the simplified approach to all lease options and does not assess whether a lease
modification has occurred or reassess lease classification:
* The lease consideration after the concession is reduced or basically unchanged from that before the
concession and the lease consideration can be undiscounted or discounted at the discount rate before
the concession;
* The concession is only for the lease payments payable before June 30 2021. An increase in the lease
payments payable after June 30 2021 does not affect the fulfillment of this condition and a decrease in
the lease payments payable after June 30 2021 does not meet the condition; and
* After comprehensive consideration of qualitative and quantitative factors it is determined that there is
no significant change in other terms and conditions of the lease.
1) Accounting for operating leases
* The lease fee paid by the Company for leased assets shall be amortized on a straight-line basis during the
entire lease period without deducting the rent-free period and included in current expenses. The initial direct
expenses paid by the Company related to the leasing transaction shall be included in the current expenses.When the asset lessor bears the lease-related expenses that should be borne by the Company the Company
deducts this part of the expenses from the total rent and the deducted rent expenses are apportioned during the
lease period and included in the current expenses.For operating leases that adopt the simplified method of rental concessions related to the COVID-19 epidemic
the Company will continue to include the original contract rents in the relevant asset costs or expenses in
117Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
accordance with the same method as before the concessions. In the event of rent reduction or exemption the
Company will take the reduced rent as contingent rent and include it in profit or loss during the reduction or
exemption period. If the payment of rent is postponed the Company will recognize the payable rent as an
account payable during the original payment period and offset the payable account recognized in the previous
period when the actual payment is made.* The lease fees collected by the Company for leasing assets shall be amortized on a straight-line basis over
the entire lease period without deducting the rent-free period and shall be recognized as lease-related income.The initial direct expenses paid by the Company related to leasing transactions are included in the current
expenses; if the amount is relatively large they are capitalized and included in the current income in stages on
the same basis as the recognition of lease-related income throughout the lease period.When the Company bears the lease-related expenses that should be borne by the lessee the Company deducts
this part of the expenses from the total rental income and distributes the deducted rental expenses during the
lease period. For operating leases that adopt the simplified method of rent reduction related to the new crown
pneumonia epidemic the Company will continue to recognize the original contract rent as lease income in
accordance with the same method as before the reduction; In the event of rent reduction or exemption the
Company will use the reduced or reduced rent as contingent rent and offset the rental income during the
reduction or exemption period;
If the collection of rent is postponed the Company will recognize the rent payable as an account receivable
during the original collection period and offset the account receivable confirmed in the previous period when it
is actually received.
2) Accounting for finance leases
* Finance leased assets: On the date of commencement of the lease the Company takes the lower of the fair
value of the leased asset and the present value of the minimum lease payment as the entry value of the leased
asset and takes the minimum lease payment as the entry value of the long-term payables the difference is
regarded as unrecognized financing expenses. The Company uses the actual interest rate method to amortize
unrecognized financing expenses during the asset lease period and include them in financial expenses. The
initial direct expenses incurred by the Company shall be included in the value of leased assets.For financial leases that adopt the simplified method of rental concessions related to the new crown pneumonia
epidemic the Company will continue to recognize unrecognized financing expenses as current financing
expenses at the same discount rate as before the reduction continue to depreciate the financial leased assets in
accordance with the same method as before the concession. For the rent reduction or exemption the Company
regards the rent reduction or exemption as the contingent rent when the original rent payment obligation is
terminated by reaching a concession agreement it will be included in the current profit and loss and the long-
term payables will be adjusted accordingly or it will be discounted according to the pre-reduction discount rate
and included in the current profit and loss and the unrecognized financing expenses will be adjusted; if the rent
payment is deferred the Company will offset the long-term payables confirmed in the previous period when the
actual payment is made.
118Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
* Assets leased out by finance: On the lease commencement date the Company recognizes the difference
between the sum of the receivable finance lease the unguaranteed residual value and its present value as
unrealized financing income and recognizes it as lease income in each period when rent is received in the
future. The initial direct expenses incurred by the Company related to the leasing transaction shall be included
in the initial measurement of finance lease receivables and the amount of income recognized during the lease
period shall be reduced. For financial leases that adopt the simplified method of rental concessions related to the
COVID-19 epidemic the Company will continue to recognize unrealized financing income as lease income at
the same lease implicit interest rate as before the concessions. In the event of rent reduction or exemption the
Company will use the reduced rent as contingent rent when reaching a concession agreement or giving up the
right to collect the original rent the originally recognized rental income will be offset and the part not offset
will be included in investment income and the long-term receivables will be adjusted accordingly or it will be
discounted according to the pre-reduction discount rate and included in the current profit and loss and adjust the
unrealized financing income; if the rent is deferred the Company will offset the long-term receivables
confirmed in the previous period when the actual receipt is actually received.
28. Other Important Accounting Policies and Accounting Estimates
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 results may differ from these estimates. The management of the Company conducts
continuous evaluation on the key assumptions and uncertain factors involved in the estimation and the impact
of changes in accounting estimates is confirmed in the current and future periods of the changes.The main uncertain factors of the estimated amount are as follows:
(1) Measurement of expected credit losses
The Company calculates expected credit losses through default risk exposure and expected credit loss rate and
determines expected credit loss rate based on default probability and default loss rate. When determining the
expected credit loss rate the Company uses data such as internal historical credit loss experience and adjusts
historical data in combination with current conditions and forward-looking information. In considering forward-
looking information the Company uses indicators including the risk of economic downturn the expected
increase in the unemployment rate changes in the external market environment technological environment and
customer conditions etc. The Company regularly monitors and reviews assumptions related to the calculation
of expected credit losses.
(2) Provision for price of inventory decline
As mentioned in “V. (11) Inventories” in this note the Company regularly estimates the net realizable value of
the inventory and recognizes the loss for price of inventory decline for the difference between the inventory
cost and the net realizable value. When estimating the net realizable value of inventories the Company
considers the purpose of holding the inventories and uses the available information as the basis for the
estimation including the market price of the inventories and the Company's past operating costs. The actual
selling price cost of completion sales expenses and taxes of inventories may change with changes in market
sales conditions production technology or actual use of inventories so the amount of provision for price of
119Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
inventory decline may change due to the above reasons. The adjustment to the provision for price of inventory
decline will affect the profit and loss of the period when the estimate is changed.
(3) Impairment of assets other than inventories and financial assetsAs described in “V. (19) Impairment of Long-term Assets" in this note the Company conducts impairmentassessment on assets other than inventories and financial assets on the balance sheet date to determine whether
the recoverable amount of the asset has fallen below its book value. Where circumstances indicate that the
carrying amount of a long-term asset may not be recoverable in full the asset is considered to be impaired and
an impairment loss is recognized accordingly.The recoverable amount is the higher of the net amount of the fair value of the asset (or asset group) minus the
disposal costs and the present value of the expected future cash flow of the asset (or asset group). Because the
Company cannot reliably obtain the public market price of the asset (or asset group) and cannot reliably and
accurately estimate the fair value of the asset. Therefore the Company regards the present value of estimated
future cash flow as the recoverable amount. When estimating the present value of future cash flows it is
necessary to make major judgments on the output selling price related operating costs and discount rate used
in calculating the present value of the asset (or asset group). When estimating the recoverable amount the
Company will use all available relevant information including the prediction of production 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 “V. (15) Fixed Assets” and “V. (18) Intangible Assets” in this note the Company accrues
depreciation and amortization within the useful life of assets such as fixed assets and intangible assets after
considering their scrap value. The Company regularly reviews the useful life of the relevant assets to determine
the amount of depreciation and amortization expense to be included in each reporting period. The service life of
assets is determined by the Company based on past experience of similar assets and in combination with
expected technological changes. The depreciation and amortization expense is adjusted in future periods if there
are material changes from previous estimates.
(5) Deferred tax assets
When it is estimated that sufficient taxable income can be obtained in the future period to utilize unrecovered
tax losses and deductible temporary differences the Company is limited to the amount of taxable income that is
likely to be obtained to offset unrecovered tax losses and deductible temporary differences and calculates and
recognizes the relevant deferred income tax assets on the basis of the applicable income tax rate during the
period in which the assets are expected to be recovered .The Company needs to use judgment to estimate the time and amount of taxable income to be obtained in the
future and make reasonable estimates and judgments on the future applicable income tax rate according to the
current tax policy and other relevant policies.
120Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
To determine the amount of deferred income tax assets that should be recognized. If there is a difference
between the time and amount of profit actually generated in the future or the actual applicable income tax rate
and the management's estimate the difference will have an impact on the amount of deferred tax assets.
29. Changes in significant accounting policies and accounting estimates
(1) Significant accounting policy changes
□Applicable □Not applicable
Contents and reasons for changes in
accounting policies Approval procedure Notes
The Company implements theadjustment of “Accounting treatment ofdeferred tax related to assets and
liabilities arising from a single
Board approval
transaction not applicable to initialrecognition exemption” of“Interpretation No. 16 of AccountingStandards for Business Enterprises”
The Ministry of Finance issued the “Interpretation No. 16 of Accounting Standards for Business Enterprises”
(Cai Kuai [2022] No. 31 hereinafter referred to as "Interpretation No. 16") on November 30 2022 the contentof “Accounting treatment of deferred tax related to assets and liabilities arising from a single transaction notapplicable to initial recognition exemption” will be implemented from January 1 2023.If the transaction is not a business combination and does not affect accounting profits or taxable income (or
deductible losses) and the initially recognized assets and liabilities result in an equal taxable temporary
difference and a single transaction that can be deducted from the temporary difference (including lease
transactions where the lessee initially recognizes the lease liability on the lease commencement date and
includes it in the right-of-use asset and transactions in which estimated liabilities are recognized and included
in the cost of related assets due to the obligation to abandon fixed assets etc. hereinafter referred to as
individual transactions to which this Interpretation applies) Interpretation No. 16 does not apply the provisions
of Article 11 (2) and Article 13 of “Accounting Standards for Business Enterprises No. 18 - Income Taxes” on
the exemption from the initial recognition of deferred income tax liabilities and deferred income tax assets. For
the taxable temporary difference and deductible temporary difference arising from the initial recognition of
assets and liabilities for the transaction the enterprise shall recognize the corresponding deferred tax liabilitiesand deferred tax assets when the transaction occurs in accordance with relevant regulations such as “AccountingStandards for Business Enterprises No. 18 - Income Taxes” and other relevant provisions.For a single transaction to which this regulation is applicable that occurs between the beginning of the earliest
period in which the regulation is first implemented and the date of implementation and the lease liabilities and
121Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
right-of-use assets recognized at the beginning of the earliest period in which the financial statements are
presented due to the application of this regulation as well as the recognized estimated liabilities and
corresponding related assets of the disposal obligation where there are taxable temporary differences and
deductible temporary differences the enterprise shall make adjustments in accordance with this regulation.
(2) Changes in significant accounting estimates
□Applicable □Not applicable
(3) From 2023 the first implementation of new accounting standards will adjust the situation of the first implementation of
the financial statement items at the beginning of the year
□Applicable□Not applicable
30. Others
Discontinued operation is a separately distinguishable component that meets one of the following conditions
and the component has been disposed of by the Company or classified as held for sale by the Company:
(1) The component represents an independent principal business or a separate principal area of operation;
(2) The component is a part of an associated plan to dispose of an independent main business or a separate main
business area;
(3) This component is a subsidiary acquired exclusively for resale.
Profit and loss from continuing operations and profit and loss from discontinued operations are presented
separately in the income statement. Operating profit and loss such as impairment loss and reversal amount of
discontinued operation and disposal profit and loss are presented as discontinued operation profit and loss. For
the discontinued operations reported in the current period the Company re-reported the information originally
presented as continuing operating profit and loss in the current financial statements as the discontinued
operating profit and loss of the comparable accounting period.VI. Taxation
1. Major Types of Taxes and Tax Rates
Tax type Tax basis Tax rate (%)
Output VATs are calculated based on the sales of goods and taxable service income calculated 6%、
Value-added Tax
(‘VAT’) according to the Tax Law. After deducting the input VATs that are allowed to be deducted in the 9%、
13%
current period the difference is the VAT payable.City maintenance and
construction tax Based on actual payment of VAT and consumption tax 7%、5%
Corporate income tax Based on taxable profits 25%
122Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
2. Tax Incentives
None.VII. Notes to Consolidated Financial Statements Items
1. Monetary Funds
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Bank deposits 3135535935.14 1296662683.20
Other monetary fund 521023596.93 164482958.67
Total 3656559532.07 1461145641.87
The total amount of funds restricted for
use due to mortgage pledge or freezing 521023596.93 164482958.67
Other notes:
Among them there are restrictions on use due to mortgage pledge or freezing restrictions on withdrawals due
to centralized management of funds and details of monetary funds placed overseas and restricted on
repatriation of funds are as follows:
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Margin for bank acceptance bill 421023596.93 163297958.67
Margin for letter of credit 100000000.00
Margin for performance
Time deposit or notice deposit for guarantee
Money placed offshore with restrictions on repatriation of funds
Restricted funds due to centralized management of funds 1185000.00
Total 521023596.93 164482958.67
2. Notes Receivable
(1) Notes receivable presented by category
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Banker's acceptance bill 20000.00 139442122.88
Acceptance bill of finance company 87371995.82 290265051.82
Total 87391995.82 429707174.70
123Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Unit: yuan
If the bad debt provision for bills receivable is accrued according to the general model of expected credit losses please refer to the
disclosure method of other receivables to disclose the relevant information of bad debt provision:
□Applicable □Not applicable
(2) Notes receivable pledged by the company at the end of the period
Unit: yuan
Items Amount pledged at the end of the period
Banker's acceptance bill 255189626.40
Total 255189626.40
(3) Bills receivable that have been endorsed or discounted by the company at the end of the period and
have not yet expired on the balance sheet date
Unit: yuan
Items Amount derecognized at the end of the Amount not derecognized at the end of period the period
Banker's acceptance bill 5623759903.70
Acceptance bill of finance company 82950793.43
Total 5623759903.70 82950793.43
124Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
3. Accounts Receivable
(1) Disclosure by aging of accounts receivable
Unit: yuan
Balance as at 30 June 2023 Balance as at 1 January 2023
Types Book balance Bad debt provision Book balance Bad debt provision
Amount Percentage Bad debts
Book value Book value
(%) Amount ratio (%) Amount
Percentage Amount Bad debts (%) ratio (%)
Bad debt provisions
made on an 367153964.12 17.52% 367153964.12 100.00% 353419325.80 25.82% 353419325.80 100.00%
individual basis
Including:
Bad debt provisions
made on the 998981920.44 73.12% 84574258.27 8.47% 914407662.17 1015413788.67 74.18% 118182892.61 11.64% 897230896.06
combination
Total 1366135884.56 100.00% 451728222.39 914407662.17 1368833114.47 100.00% 471602218.41 897230896.06
125Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Bad debt provisions made on an individual basis: RMB 367153964.12
Unit: yuan
Balance as at 30 June 2023
Name
Book balance Bad debt provision Bad debts ratio (%) Reason for provision
Benxi Nanfenxinhe
Metallurgical Charge 48196244.68 48196244.68 100.00% Discontinued no return
Co. Ltd. expected
Benxi Iron and Steel Bankruptcy and
(Group) Third
Construction 10613567.47 10613567.47 100.00%
reorganization of the
enterprise is expected
Engineering Co. Ltd. to be irrecoverable
Benxi Iron and Steel Bankruptcy and
(Group) First 3121070.85 3121070.85 100.00% reorganization of the Construction enterprise is expected
Engineering Co. Ltd. to be irrecoverable
Bankruptcy and
Huachen Auto Group
Holdings Limited 305223081.12 305223081.12 100.00%
reorganization of the
enterprise is expected
to be irrecoverable
Total 367153964.12 367153964.12
Bad debt provisions made on the combination: 106088027.72
Unit: yuan
Balance as at 30 June 2023
Name
Accounts receivable Bad debt provision Bad debts ratio (%)
Within 1 year 920913586.81 9209135.87 1.00%
1 to 2 years 865863.89 86586.39 10.00%
2 to 3 years 2404917.15 480983.42 20.00%
More than 3 years 74797552.59 74797552.59 100.00%
Total 998981920.44 84574258.27
Notes to determining the combination basis:
If the bad debt provision for accounts receivable is accrued according to the general model of expected credit losses please refer to
the disclosure method of other receivables to disclose the relevant information of bad debt provision:
□Applicable □Not applicable
Disclosure by aging
Unit: yuan
Aging Balance as at 30 June 2023
Within 1 year (including 1 year) 1633791080.62
1 to 2 years 1943328.50
2 to 3 years 4684675.99
More than 3 years 455784820.74
3 to 4 years 455784820.74
Total 2096203905.85
126Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(2) The provision for bad debts accrued reversed or recovered in the current period
Provision for bad debts in this period:
Unit: yuan
Balance as at 1 Amount changed during the period Balance as at
Type
January 2023 Accrued Reversed or Transferred or recovered written-off Other changes 30 June 2023
Provision for
bad debts of
accounts 471602218.41 18426234.94 1447761.08 451728222.39
receivable
Total 471602218.41 18426234.94 1447761.08 451728222.39
(3) Actual written-off of accounts receivable in the current period
Unit: yuan
Items Amount of written-off
Actual written-off of accounts receivable 1447761.08
Important write-off of accounts receivable:
Unit: yuan
Whether the
Name of debtor Nature of accounts Amount of Reason of written-
Written-off payment is
receivable written-off off procedures generated by a performed related party
transaction
Jining Forging Sales of products 461229.33 Deregistered General Manager Center Office Meeting No
Xuzhou
Jinshanqiao
Development Zone Sales of products 200265.48 Revoked General Manager
Yongan Metal Office Meeting
No
Material Co. Ltd.Shanghai Benxi
Iron and Steel Sales of products 193625.29 Deregistered General Manager Industry and Trade Office Meeting No
Company
China Ordnance
Materials
Northeast Sales of products 155616.74 Revoked General Manager Company Fushun Office Meeting No
Technology and
Trade Center
Tonghua Grain and
Oil Machinery Sales of products 141139.39 Deregistered General Manager
Factory Office Meeting
No
Benxi Steel Yantai
Marketing Co. Sales of products 138378.96 Deregistered General Manager
Ltd. Office Meeting
No
Shandong
Zhucheng
Industrial Supply Sales of products 87085.43 Revoked General Manager No
and Marketing Office Meeting
Corporation
127Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Tieling Jinlong
Petroleum Pipeline General Manager
Machinery Product Sales of products 24608.99 Deregistered Office Meeting No
Distribution Office
Shenzhen
Zhongtianda
Materials Industry Sales of products 20441.96 Deregistered General Manager
and Trade Co. Office Meeting
No
Ltd.Shunde
Xinqiangsheng Sales of products 12635.20 Deregistered General Manager No
Mold Co. Ltd. Office Meeting
Benxi Steel
Material Sales of products 7167.87 Revoked General Manager
Distribution Office Office Meeting
No
Guangdong
Zhaoqing
Township
Enterprise Sales of products 5566.44 Deregistered General Manager
Building Materials Office Meeting
No
and Minerals
Company
Total 1447761.08
(4) The top five units with the ending balance of accounts receivable collected by the debtor
Unit: yuan
Book balance as at 30 June
Name of debtor % of the total closing balance Bad debt provision balance as
2023 of accounts receivable at 30 June 2023
The first 640621130.96 46.89% 6406211.31
The second 305223081.12 22.34% 305223081.12
The third 76326718.36 5.59% 763267.18
The fourth 50834840.47 3.72% 508348.40
The fifth 48196244.68 3.53% 48196244.68
Total 1121202015.59 82.07%
4. Accounts Receivable Financing
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Notes receivable 953938535.80 137591996.02
Total 953938535.80 137591996.02
Changes in increase and decrease of receivables financing in the current period and changes in fair value:
□Applicable □Not applicable
If the account receivable financing impairment provision is made according to the general model of expected credit losses please
refer to the disclosure method of other receivables to disclose the relevant information of the impairment provision:
□Applicable □Not applicable
128Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
5. Prepayments
(1) Disclosure by aging of prepayments
Unit: yuan
Balance as at 30 June 2023 Balance as at 1 January 2023
Aging
Amount Percentage Amount Percentage
Within 1 year 932168955.31 99.42% 1235907044.32 99.10%
1 to 2 years 5128693.51 0.55% 8892828.10 0.71%
2 to 3 years 20696.05 2301638.78 0.18%
More than 3 years 306237.13 0.03% 76237.13 0.01%
Total 937624582.00 1247177748.33
Explanation on the reasons why the prepayments with an age of more than 1 year and an important amount
were not settled in time:
As of the end of the reporting period there were no prepayments with an age of more than one year and
significant amounts.
(2) The top five units of the ending balance of prepayments collected by the debtor
Name of debtor Balance as at 30 June 2023 % of the total closing balance of prepayments(%)
The first 104332332.83 15.62
The second 103804229.89 15.54
The third 88096459.67 13.19
The fourth 80010275.85 11.98
The fifth 58014169.46 8.69
Total 434257467.70 65.02
6. Other Receivables
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Other receivables 98776833.29 127198692.92
Total 98776833.29 127198692.92
129Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(1) Other receivables
1) Disclosure by nature of other receivables
Unit: yuan
Nature of other receivables Balance as at 30 June 2023 Balance as at 31 December 2022
Temporary trading 164622765.92 181771075.61
Others 33356356.95 9560814.07
Total 197979122.87 191331889.68
2) Situation of bad debt provisions
Unit: yuan
The first stage The second stage The third stage
Expected credit losses Expected credit loss
Expected credit losses
Bad debt provision over the entire duration over the entire duration over the next 12 Total
(no credit impairment (credit impairment has
months
occurred) occurred)
Balance as at 31
December 2022 850661.71 1353672.38 61928862.67 64133196.76
Balance as at 31
December 2022 is in
the current period
-- Transfer to the
second stage -199513.15 199513.15
-- Transfer to the third
stage -931818.80 931818.80
Provision for this
306730.06125274.8135445003.5435877008.41
period
Derecognition in this
period 807915.59 807915.59
Balance as at 30 June
2023957878.62746641.5397497769.4299202289.58
Changes in the book balance of loss provisions with significant changes in the current period
□Applicable □Not applicable
130Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Disclosure by aging
Unit: yuan
Aging Balance as at 30 June 2023
Within 1 year (including 1 year) 95787862.39
1 to 2 years 1920566.77
2 to 3 years 2772924.29
More than 3 years 97497769.42
3 to 4 years 97497769.42
Total 197979122.87
3) The provision for bad debts accrued reversed or recovered in the current period
Provision for bad debts in this period:
Unit: yuan
Balance as at Amount changed during the period
Type 31 December Balance as at
Accrued Reversed or Transferred or 2022 recovered written-off Other changes
30 June 2023
Provision for
bad debts of
other 64133196.76 35877008.41 807915.59 99202289.58
receivables
Total 64133196.76 35877008.41 807915.59 99202289.58
4) Other receivables actually written off in the current period
Unit: yuan
Items Amount written off
Other receivables actually written off 807915.59
Important write-off of other receivables:
Unit: yuan
Whether the
Written-off payment is
Nature of other Amount of Reason of written-
Name of debtor procedures generated by a
receivables written-off off
performed related party
transaction
Beijing Bensteel
General Manager
Material Sales Sales of products 807915.59 Revoked No Office Meeting
Center
Total 807915.59
131Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
5) The top five units with the ending balance of other receivables collected by the debtor
Unit: yuan
% of the total Provision for bad
Nature of other Balance as at 30
Name of debtor Aging closing balance of debts as at 30 June
receivables June 2023
other receivables 2023
Temporary
The first
payment 14431832.25
Within 1 year 7.29% 144318.32
Temporary
The second 12212650.80 Within 1 year payment 6.17% 122126.51
Temporary
The third
payment 4532904.80
Within 1 year 2.29% 45329.05
Temporary
The fourth
payment 4609686.93
Within 1 year 2.33% 46096.87
Temporary
The fifth 4399240.94 Within 1 year payment 2.22% 43992.41
Total 40186315.72 20.30% 401863.16
7. Inventories
Does the Company need to comply with the disclosure requirements of the property industry?
No
(1) Inventory classification
Unit: yuan
Balance as at 30 June 2023 Balance as at 1 January 2023
Provision for Provision for
price of inventory price of inventory
Items decline/provision decline/provision Book balance Book value Book balance Book value
for impairment of for impairment of
contract contract
performance cost performance cost
Raw materials
and main 4361671293.63 24954852.46 4334684759.94 4215260584.25 24954852.46 4190305731.79
materials
Work in progress
and self-made
semi-finished 1776598180.55 9135627.05 1760358607.69 2070182298.44 18271254.09 2051911044.35
products
Stock goods 1606888537.54 108797852.86 1507226311.72 2236715664.20 15203965.16 2221511699.04
Total 7745158011.72 142888332.37 7602269679.35 8522158546.89 58430071.71 8463728475.18
132Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(2) Provision for price of inventory decline and provision for impairment of contract performance cost
Unit: yuan
Additions in this period Reductions in this period
Balance as at 1 Transferred Balance as at
Items January 2023 Accrued Others back or written- Others 30 June 2023
off
Raw materials
and main 24954852.46 24954852.46
materials
Work in
progress and
self-made semi- 18271254.09 9135627.05 18271254.09 9135627.05
finished
products
Stock goods 15203965.16 108797852.86 15203965.16 108797852.86
Total 58430071.71 117933479.91 33475219.25 142888332.37
8. Other Current Assets
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Prepaid tax 408957.27 166991140.45
VAT input tax 38659283.83 228449995.81
Total 39068241.10 395441136.26
133Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
9. Long-term Equity Investments
Unit: yuan
Changes in current period
Balance of
Balance as at 1 Investment Gains Other Balance as at 30
Investees January Other Declaration of
provision for
Additional Reduced and losses comprehensive Provision for June 2023(Book impairment as at
2023(Book value) equity cash dividends Others investment investment recognized under income impairment value)
changes or profit 30 June 2023
the equity method adjustment
1. Joint ventures
2. Associates
Bensteel Baojin
(Shenyang)
Automotive New 47996314.61 -439659.59 47556655.02
Material Technology
Co. Ltd.Zhejiang Jingrui
Steel Processing Co. 3034462.57 -2740000.00 -294462.57
Ltd.Subtotal 51030777.18 -2740000.00 -734122.16 47556655.02
Total 51030777.18 -2740000.00 -734122.16 47556655.02
134Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
10. Other Equity Instrument Investments
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Equity of Suzhou Longben Metal
3998216.043998216.04
Materials Co. Ltd.Equity of Northeast Special Steel Group
1016420266.271016420266.27
Co. Ltd.Total 1020418482.31 1020418482.31
11. Fixed Assets
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Fixed assets 24254087872.28 24836556422.90
Disposal of fixed assets 873197.46
Total 24254961069.74 24836556422.90
(1) Situation of fixed assets
Unit: yuan
Transport equipment
Items Property and plant Mechanical equipment Total
and other equipment
1．Original book value
(1) Balance as at 31
12443526672.9451336275140.55598601340.4764378403153.96
December 2022
(2) Additions in this
562119788.26588245439.05890384.031151255611.34
period
—Purchase 243362.83 243362.83
—Construction in
562119788.26588245439.05647021.201151012248.51
progress transferred in
—Increase in
business mergers
(3) Reductions in this
320593768.57783359987.047217992.841111171748.45
period
—Disposal or
320593768.57783359987.047217992.841111171748.45
scrapping
(4) Balance as at 30
12685052692.6351141160592.56592273731.6664418487016.85
June 2023
2．Accumulated
depreciation
135Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(1) Balance as at 31
6322977252.3232708591476.02416799906.7639448368635.10
December 2022
(2) Additions in this
313255445.84899386391.1816612386.861229254223.88
period
—Accrued 313255445.84 899386391.18 16612386.86 1229254223.88
(3) Reductions in this
83842247.55515897099.775846606.81605585954.13
period
—Disposal or
83842247.55515897099.775846606.81605585954.13
scrapping
(4) Balance as at 30
6552390450.6133092080767.43427565686.8140072036904.85
June 2023
3．Provision for
impairment
(1) Balance as at 31
84098414.329379681.6493478095.96
December 2022
(2) Additions in this
period
—Accrued
(3) Reductions in this
849152.24266704.001115856.24
period
—Disposal or
849152.24266704.001115856.24
scrapping
(4) Balance as at 30
83249262.089112977.6492362239.72
June 2023
4．Carrying value
(1) Carrying value as at
6049412979.9418039966847.49164708044.8524254087872.28
30 June 2023
(2) Carrying value as at
6036451006.3018618303982.89181801433.7124836556422.90
31 December 2022
(2) Temporarily idle fixed assets
Unit: yuan
Original book Accumulated Provision for
Items Book value Notes
value depreciation impairment
Property and plant 219866137.05 136754246.14 83111890.91
Mechanical
81371079.5074206339.465656705.721508034.32
equipment
Total 301237216.55 210960585.60 88768596.63 1508034.32
136Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(3) Fixed assets leased out through operating leases
Unit: yuan
Items Carrying value as at 30 June 2023
Property and plant 1239002.14
(4) Fixed assets with title certificates not yet completed
Unit: yuan
Reasons for not handling the certificate
Items Book value
of title
Property and plant 1263898352.97 In progress
(5) Disposal of fixed assets
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Mechanical equipment 873197.46
Total 873197.46
12. Construction in Progress
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Construction in progress 4151149369.23 3158195899.65
Total 4151149369.23 3158195899.65
137Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(1) Situation of construction in progress
Unit: yuan
Balance as at 30 June 2023 Balance as at 1 January 2023
Items
Book balance Provision for impairment Book value Book balance
Provision for
impairment Book value
Special Steel Electric Furnace Upgrading Project 1468183183.99 1468183183.99 1437078751.92 1437078751.92
Special steel rolling mill renovation project 496329489.14 496329489.14 470182411.88 470182411.88
Environmental protection transformation of sheet metal raw material
yard 370260075.28 370260075.28 165792014.40 165792014.40
A cold rolling transformation project 212176267.19 212176267.19 90087329.61 90087329.61
566 square meters sintering waste heat utilization project 92259450.24 92259450.24 92259450.24 92259450.24
Environmental protection and intelligent upgrading of board material
yard——Environmental protection renovation project of No. 2 Coal 90337806.17 90337806.17 19266.06 19266.06
Storage Yard
1780 production line upgrade 77088750.00 77088750.00
The ABC and DEF stockyards of the Plate Ironmaking Plant are closed 69735369.56 69735369.56 150000.00 150000.00
Caixi Special Steel Feeding Station of Plate Scrap Steel Plant 68245410.08 68245410.08 51959719.57 51959719.57
New tertiary dedusting system for 1#2#3#7# converter in steelmaking
plant 67696017.28 67696017.28 42834455.31 42834455.31
Plate company's No. 1 CDQ boiler pressure boost transformation and
new No. 34 unit project 50522370.80 50522370.80 20249501.21 20249501.21
The integrated construction of Anben restructuring information system 49170020.61 49170020.61
Desulfurization Waste Liquid Acid Production Project of Plate
Ironmaking Plant 47798252.00 47798252.00 30000.00 30000.00
Plate energy centralized control project 40945397.20 40945397.20
The overall improvement of the production and manufacturing
management of Benxi Iron and Steel Co. Ltd. 39756485.12 39756485.12 39756485.12 39756485.12
Benxi Iron and Steel Posco Cold Rolling Quality Improvement
Improvement Project 30542546.40 30542546.40 27093496.08 27093496.08
Flue gas desulfurization and desulphurization project of 4B and 5
furnace groups of Benxi Steel Plate Ironmaking Plant 30342580.00 30342580.00
Cold-rolled high-strength steel project of cold-rolling general plant 27466133.97 27466133.97
Bensteel Plate Ironmaking General Plant Nanfen Pipe Concentrate
Outbound Supporting Project 26722444.32 26722444.32
Relocation and transformation of ladle hot repair station in steelmaking
plant 25712793.58 25712793.58 9792793.58 9792793.58
Others 769858526.30 769858526.30 710910224.67 710910224.67
Total 4151149369.23 4151149369.23 3158195899.65 3158195899.65
138Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(2) The change of major construction in progress
Unit: yuan
Other Proportion
Transfer to decrease of Accumulated
Including:
capitalized Current
Project name Budget amount Balance as at 31 Additions in fixed assets in in Balance as at 30 cumulative Project amount of interest Sources of December 2022 this period this period current June 2023 project progress interest
amount of
investment capitalized interest in the
capitalization funds
period current period rate (%) to budget
Special Steel
Electric Furnace 1732481000.00 1437078751.92 31104432.07 1468183183.99 84.74% 84.74% 14566446.28 6489004.08 Fundraising
Upgrading Project
Special steel
rolling mill 734730000.00 470182411.88 26147077.26 496329489.14 67.55% 67.55% 17363637.07 4198950.69 Others
renovation project
Environmental
protection
transformation of 1286370000.00 165792014.40 204468060.88 370260075.28 28.78% 28.78% 10710578.63 6408379.79 Others
sheet metal raw
material yard
A cold rolling
transformation 843640000.00 90087329.61 122088937.58 212176267.19 25.15% 25.15% 10565776.04 4688814.80 Others
project
566 square meters
sintering waste
1247841000.00 92259450.24 92259450.24 7.39% 7.39% 68627433.26 Others
heat utilization
project
Environmental
protection and
intelligent
upgrading of
board material
yard—— 310000000.00 19266.06 90318540.11 90337806.17 29.14% 29.14% Others
Environmental
protection
renovation project
of No. 2 Coal
Storage Yard
139Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
1780 production
193000000.00 77088750.00 77088750.00 39.94% 39.94% Others
line upgrade
The ABC and
DEF stockyards
of the Plate 125000000.00 150000.00 69585369.56 69735369.56 55.79% 55.79% Others
Ironmaking Plant
are closed
Caixi Special
Steel Feeding
118453701.00 51959719.57 26633367.20 10347676.69 68245410.08 66.35% 66.35% Others
Station of Plate
Scrap Steel Plant
New tertiary
dedusting system
for 1#2#3#7# 111310000.00 42834455.31 36432354.59 11570792.62 67696017.28 71.21% 71.21% 2357404.64 1397589.10 Others
converter in
steelmaking plant
Plate company's
No. 1 CDQ boiler
pressure boost
93270000.00 20249501.21 30272869.59 50522370.80 54.17% 54.17% Others
transformation
and new No. 34
unit project
The integrated
construction of
Anben
232100000.00 49170020.61 49170020.61 21.18% 21.18% 3961087.97 2115020.61 Others
restructuring
information
system
Desulfurization
Waste Liquid
Acid Production 99760000.00 30000.00 47768252.00 47798252.00 47.91% 47.91% Others
Project of Plate
Ironmaking Plant
Plate energy
centralized 119730000.00 40945397.20 40945397.20 34.20% 34.20% Others
control project
140Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
The overall
improvement of
the production
and
56000000.00 39756485.12 39756485.12 70.99% 70.99% Others
manufacturing
management of
Benxi Iron and
Steel Co. Ltd.Benxi Iron and
Steel Posco Cold
Rolling Quality
69820000.00 27093496.08 3449050.32 30542546.40 43.74% 43.74% Others
Improvement
Improvement
Project
Flue gas
desulfurization
and
desulphurization
project of 4B and 120679500.00 30342580.00 30342580.00 25.14% 25.14% Others
5 furnace groups
of Benxi Steel
Plate Ironmaking
Plant
Cold-rolled high-
strength steel
project of cold- 6169170000.00 27466133.97 27466133.97 0.45% 0.45% 867286087.53 Others
rolling general
plant
Bensteel Plate
Ironmaking
General Plant
Nanfen Pipe
49553200.00 26722444.32 26722444.32 53.93% 53.93% Others
Concentrate
Outbound
Supporting
Project
141Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Relocation and
transformation of
ladle hot repair 31160000.00 9792793.58 15920000.00 25712793.58 82.52% 82.52% Others
station in
steelmaking plant
Total 13744068401.00 2447285674.98 955923637.26 21918469.31 3381290842.93 995438451.42 25297759.07
142Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
13. Right-of-use Assets
Unit: yuan
Items Land Property and plant Total
1．Original book value
(1) Balance as at 31
1132274415.17368465367.561500739782.73
December 2022
(2) Additions in this period
(3) Reductions in this period
(4) Balance as at 30 June
1132274415.17368465367.561500739782.73
2023
2．Accumulated depreciation
(1) Balance as at 31
79808472.4440940596.40120749068.84
December 2022
(2) Additions in this period 19952118.12 10235149.14 30187267.26
—Accrued 19952118.12 10235149.14 30187267.26
(3) Reductions in this period
—Disposal
(4) Balance as at 30 June
99760590.5651175745.54150936336.10
2023
3．Provision for impairment
(1) Balance as at 31
December 2022
(2) Additions in this period
—Accrued
(3) Reductions in this period
—Disposal
(4) Balance as at 30 June
2023
4．Carrying value
(1) Carrying value as at 30
1032513824.61317289622.021349803446.63
June 2023
(2) Carrying value as at 31
1052465942.73327524771.161379990713.89
December 2022
143Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
14. Intangible Assets
(1) Situation of intangible assets
Unit: yuan
Items Land use rights Patent right Unpatented Software and technology others Total
1．Original book
value
(1) Balance as at
31 December 2022 336885314.76 267948.72 337153263.48
(2) Additions in
this period
—Purchase
—Internal
research and
development
—Increase in
business mergers
(3) Reductions in
this period
—Disposal
(4) Balance as at
30 June 2023 336885314.76 267948.72 337153263.48
2．Accumulated
depreciation
(1) Balance as at
31 December 2022 74208486.41 159839.66 74368326.07
(2) Additions in
this period 3025608.41 13397.46 3039005.87
—Accrued 3025608.41 13397.46 3039005.87
(3) Reductions in
this period
—Disposal
(4) Balance as at
30 June 2023 77234094.82 173237.12 77407331.94
3．Provision for
impairment
(1) Balance as at
31 December 2022
(2) Additions in
this period
—Accrued
(3) Reductions in
this period
—Disposal
(4) Balance as at
30 June 2023
4．Carrying value
(1) Carrying value
as at 30 June 2023 259651219.94 94711.60 259745931.54
(2) Carrying value
as at 31 December 262676828.35 108109.06 262784937.41
2022
144Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(2) Situation of land use rights without title certificates
Unit: yuan
Reasons for not handling the certificate
Items Book value
of title
Land use rights 38743466.68 In progress
Total 38743466.68
15. Deferred Tax Assets / Deferred Tax Liabilities
(1) Deferred tax assets not offset
Unit: yuan
Balance as at 30 June 2023 Balance as at 1 January 2023
Items Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Provision for
518167260.88129541815.22396834109.8399208527.46
impairment of assets
Unrealized profits from
859549.28214887.3280751325.5220187831.38
internal transactions
Changes in fair value
of other financial assets
21315582.725328895.6821315582.735328895.68
included in other
comprehensive income
Lease liabilities 1349803446.64 337450861.66 1379990713.88 344997678.47
Others 51701085.40 12925271.35 46650523.04 11662630.76
Total 1941846924.92 485461731.23 1925542255.00 481385563.75
(2) Deferred tax liabilities not offset
Unit: yuan
Balance as at 30 June 2023 Balance as at 1 January 2023
Items Taxable temporary Taxable temporary Deferred tax liabilities Deferred tax liabilities
differences differences
Right-of-use assets 1349803446.63 337450861.66 1379990713.89 344997678.47
Changes in fair value
of other financial assets
included in other 109236.04 27309.01 109236.04 27309.01
comprehensive income
Total 1349912682.67 337478170.67 1380099949.93 345024987.48
145Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(3) Deferred tax assets or liabilities presented in net amount after offset
Unit: yuan
Balance of deferred tax Offsetting amount of Balance of deferred tax
Offsetting amount of
assets or liabilities after assets or liabilities after
Items deferred tax assets and deferred tax assets and
offset as at 30 June offset as at 1 January
liabilities
2023 liabilities 2023
Deferred tax assets 337450861.66 148010869.57 344997678.47 136387885.28
Deferred tax liabilities 337450861.66 27309.01 344997678.47 27309.01
(4) Details of unrecognized deferred tax assets
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Deductible temporary difference 305227125.75 305224166.01
Deductible loss 2599959695.35 1349817349.12
Total 2905186821.10 1655041515.13
(5) Deductible losses for unrecognized deferred tax assets will expire in the following years
Unit: yuan
Year Balance as at 30 June 2023 Balance as at 31 December 2022 Notes
Year 2023 4678743.89 6836473.11
Year 2024 12164389.35 12164389.35
Year 2025 8257832.98 8257832.98
Year 2026 6799314.77 6799314.77
Year 2027 1315759338.91 1315759338.91
Year 2028 1252300075.45
Total 2599959695.35 1349817349.12
16. Other Non-current Assets
Unit: yuan
Balance as at 30 June 2023 Balance as at 1 January 2023
Items Provision for Provision for Book balance Book value Book balance Book value
impairment impairment
Prepayments
for long-term 349815196.20 349815196.20 110065560.68 110065560.68
assets
Total 349815196.20 349815196.20 110065560.68 110065560.68
146Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
17. Short-term Borrowings
(1) Classification of short-term borrowings
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Credit loan 300000000.00
Discounted undue notes 20000.00 49200000.00
Total 300020000.00 49200000.00
18. Notes Payable
Unit: yuan
Types Balance as at 30 June 2023 Balance as at 1 January 2023
Banker's acceptance bill 750527835.47 1407117263.33
Commercial acceptance bill 4929414404.12 2242219356.03
Domestic letter of credit 2040000000.00 740000000.00
Total 7719942239.59 4389336619.36
19. Accounts Payable
(1) Details of accounts payable
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Accounts payable 3394258784.62 2650335777.91
Service 174409816.97 60238703.49
Payables for engineering and equipment 299798220.11 767867762.87
Repair costs and others 224428703.69 217978219.58
Total 4092895525.39 3696420463.85
(2) Important accounts payable aged over 1 year
Unit: yuan
Items Balance as at 30 June 2023 Reasons for non-payment or carryover
The first 9014897.80 Billing conditions have not been met
The second 4193831.29 Billing conditions have not been met
The third 4091809.05 Billing conditions have not been met
The fourth 3127924.07 Billing conditions have not been met
The fifth 1342440.00 Billing conditions have not been met
Total 21770902.21
147Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
20. Contract Liabilities
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Advances from customers 3733739770.22 3794115592.29
Total 3733739770.22 3794115592.29
21. Employee Benefits Payable
(1) Employee benefits payable presentation
Unit: yuan
Balance as at 1 January
Items Additions in this period
Reductions in this Balance as at 30 June
2023 period 2023
I. Short-term employee
benefits 10046363.27 1101071973.76 1098165873.06 12952463.97
II. Post-employment
benefits - defined 138804290.70 138804290.70
contribution plans
III. Termination
benefits 8183513.99 8183513.99
Total 10046363.27 1248059778.45 1245153677.75 12952463.97
(2) Short-term employee benefits presentation
Unit: yuan
Balance as at 1 January
Items Additions in this period Reductions in this
Balance as at 30 June
2023 period 2023
I. Salaries bonus
allowances and 794299383.08 794299383.08
subsidies
II. Staff welfare 93936208.17 93936208.17
III. Social insurances 95670156.88 95670156.88
Including: Medical
insurance 73981150.79 73981150.79
Work-related
injury insurance 21678022.69 21678022.69
Maternity
insurance 10983.40 10983.40
IV. Housing Fund 6622309.00 95210946.00 95210946.00 6622309.00
V. Labor union fees
staff and workers’ 3424054.27 21955279.63 19049178.93 6330154.97
education fee
Total 10046363.27 1101071973.76 1098165873.06 12952463.97
148Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(3) Defined contribution plans presentation
Unit: yuan
Balance as at 1 January
Items Additions in this period
Reductions in this Balance as at 30 June
2023 period 2023
I. Basic pension 134565282.08 134565282.08
II. Unemployment
insurance 4239008.62 4239008.62
Total 138804290.70 138804290.70
22. Taxes and Surcharges Payable
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
VAT 66496383.29 5168511.13
Corporate income tax 12274395.43 11469020.92
Individual income tax 783980.67 2546699.73
City maintenance and construction tax 1660244.53 175567.61
Property tax 6901254.66 3785986.96
Educational surcharge 1220343.26 125405.40
Land use tax 1049336.05 1051651.99
Others 16057391.23 20070077.04
Total 106443329.12 44392920.78
23. Other Payables
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Other payables 1639486201.24 1247722165.47
Total 1639486201.24 1247722165.47
(1) Other payables
1) Other payables by nature
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Deposit 869292.00 2303050.00
Margin 317146084.62 290353044.56
Accounts 1108631647.65 941440196.32
Others 212839176.97 13625874.59
Total 1639486201.24 1247722165.47
149Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
24. Non-current Liabilities Maturing within One Year
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Long-term borrowings maturing within
one year 1572461117.60 2501169854.72
Bonds payable maturing within one year 44762324.73
Lease liability maturing within one year 40740341.21 40318706.98
Total 1613201458.81 2586250886.43
25. Other Current Liabilities
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Output tax to be transferred 485575516.40 493235027.03
Total 485575516.40 493235027.03
26. Long-term Borrowings
(1) Long-term loans presented by category
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Guaranteed loans 360780612.70
Credit loans 959713911.60 1366157689.60
Total 959713911.60 1726938302.30
27. Bonds Payable
(1) Details of bonds payable
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Convertible bonds 5382304119.20 5276502232.78
Total 5382304119.20 5276502232.78
150Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(2) Changes in bonds payable (Excluding other financial instruments such as preferred stocks and perpetual bonds classified as financial liabilities)
Unit: yuan
Convert
Interest Premium and
Name of Term to Balance as at 31 Current Repayment to stock Balance as at 30
Face value Issue date Issuance amount accrued at discount
bond maturity December 2022 issue this period this June 2023
face value amortization
period
Bengang
Convertible
Bonds
(Code of 6800000000.00 2020/6/29 6 years 6800000000.00 5276502232.78 42232875.75 148044762.17 10000.00 5382304119.20
bond:
127018)
Total 6800000000.00 5276502232.78 42232875.75 148044762.17 10000.00 5382304119.20
151Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(3) Description of the conditions and time for conversion of convertible bonds
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.During the period from January 1 2021 to December 31 2021 the Company's A-share convertible bonds of
RMB 1168855400.00 were converted into the Company's A-share ordinary shares and the number of
converted shares was 232819847 shares. Of which:
In the first quarter of 2022 Bengang's convertible bonds decreased by RMB 67000.00 (670 bonds) due to share
conversion the number of shares converted was 14698 shares and the conversion price was RMB 4.55 per
share;
In the second quarter of 2022 Bengang's convertible bonds decreased by RMB 13200.00 (132 bonds) due to
share conversion the number of shares converted was 3029.00 shares and the conversion price was RMB 3.95
per share;
In the third quarter of 2022 Bengang's convertible bonds decreased by RMB 9300.00 (93 bonds) due to share
conversion the number of shares converted was 2352 shares and the conversion price was RMB 3.95 per share;
In the fourth quarter of 2022 Bengang's convertible bonds decreased by RMB 3000.00 (30 bonds) due to share
conversion the number of shares converted was 759 shares and the conversion price was RMB 3.95 per share;
In the first quarter of 2023 Bengang's convertible bonds decreased by RMB 4000.00 (40 bonds) due to share
conversion the number of shares converted was 1012 shares and the conversion price was RMB 3.95 per share;
In the second quarter of 2023 Bengang's convertible bonds decreased by RMB 6000.00 (60 bonds) due to
share conversion the number of shares converted was 1518 shares and the conversion price was RMB 3.95 per
share;
As at June 30 2023 the Company's remaining balance of convertible bonds was RMB 5631042100.00
(56310421 bonds).
(4) Notes to other financial instruments classified as financial liabilities
Basic information on preferred shares perpetual bonds and other financial instruments issued at the end of the
period
None.
152Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
28. Lease Liabilities
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Lease payments 2186301130.48 2191946735.27
Unrecognized financing charges -781227266.14 -767279566.11
Reclassified to non-current liabilities due
-40740341.21-40318706.98
within one year
Total 1364333523.13 1384348462.18
29. Deferred Income
Unit: yuan
Balance as at 1 Additions in this Reductions in this Balance as at 30
Items Reasons
January 2023 period period June 2023
Government grant 42377015.51 850000.00 1839198.73 41387816.78 Government grant
Total 42377015.51 850000.00 1839198.73 41387816.78
153Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Projects related to government grants:
Unit: yuan
Amount included Amount of
New subsidy Amount included Asset-related
Balance as at 1 in non-operating offsetting costs Other Balance as at 30
Liabilities items amount in this in other income in /Revenue-
January 2023 income in the and expenses in changes June 2023
period the current period related
current period the current period
Research and development of the third-
generation high-strength steel for 1160000.00 290000.00 870000.00 Asset-related
automobiles
Carbon fiber wastewater advanced
treatment project in Dongfeng plant area 5700000.00 950000.00 4750000.00 Asset-related
of sheet metal coking plant
Desulfurization and denitrification project
of coal-fired boiler in high-voltage
workshop of Benxi Iron and Steel Power 2400000.00 300000.00 2100000.00
Asset-related
Plant
Air Pollution Prevention and Control Fund
- Second Sintering Cleaning and Dust
Removal Ultra-low Emission 1230000.00 205000.00 1025000.00
Asset-related
Transformation Project
2021 Special Fund Project for Intellectual
Manufacturing and Strengthening the 8100000.00 8100000.00 Asset-related
Province
2021 Benxi City Expert Talent and
Enterprise Docking Project 5000.00 5000.00
Asset-related
2021 Benxi City Pollution Control and
Energy Conservation and Carbon
Reduction Special Project (Converter Gas 1500000.00 44117.65 1455882.35 Asset-related
Recovery and Efficiency Improvement
Transformation Project)
154Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
2021 Municipal Skillmaster Workstation
Fees 77297.51 81.08 77216.43
Asset-related
2018 Liaoning Provincial "Hundred
Thousands of Talents Project" Funding 220000.00 220000.00 Asset-related
Project
2018 Municipal Skillmaster Workstation
Fees 58766.34 58766.34
Asset-related
2019 Municipal Skillmaster Workstation
Fees 69500.19 69500.19
Asset-related
2020 special ecological civilization
construction project (special steel electric 20000000.00 20000000.00 Asset-related
furnace upgrade project)
Liaoning Artisan Subsidy 2.97 2.97 Asset-related
Effect mechanism and control of rare earth
oxysulfide on the plasticity of automobile 334448.50 334448.50 Asset-related
steel
Design of rare earth steel metallurgical
Revenue-
slag system and research on its physical 340000.00 340000.00 related
and chemical properties
Provincial Science and Technology
Department National Natural Science Revenue-
Foundation of China-Liaoning Provincial 334000.00 334000.00 related
Government Joint Fund Project
2019 Provincial Skill Master Workstation Revenue-
Fees 200000.00 200000.00 related
2020 Provincial Skillmaster Workstation Revenue-
Fees 100000.00 100000.00 related
Basic research on the new technology of
Revenue-
composite iron coke low-carbon 168000.00 168000.00 related
ironmaking charge
155Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
2021 the second batch of planned projects
of Liaoning Provincial Central Revenue-
Government Guidance for Local Science 300000.00 300000.00 related
and Technology Development Funds
2020 Liaoning Provincial "Hundred
Revenue-
Thousands of Talents Project" Funding 50000.00 50000.00 related
Project
Provincial Science and Technology
Revenue-
Department 2022 Liaoning Provincial 30000.00 30000.00 related
Natural Science Foundation Project Fund
2022 Liaoning will become a strong Revenue-
province with digital intelligence 300000.00 300000.00 related
Municipal enterprise operation patent Revenue-
navigation project funding subsidy 200000.00 200000.00 related
Xingliao Talents Program government Revenue-
subsidy 350000.00 350000.00 related
156Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
30. Share Capital
Unit: yuan
Changes in the current period increase (+) decrease (-)
Items Balance as at 1 Provident fund Balance as at 30
January 2023 Issuance of Bonus new shares shares converted into Others Subtoal June 2023 share
Total
shares 4108212217.00 2530.00 2530.00 4108214747.00
Other notes:
The increase in this period is due to the conversion of A-share convertible bonds issued by the Company into
2530.00 A-share ordinary shares. Please refer to Note VII. (27) Bonds Payable for details.
157Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
31. Other Equity Instruments
(1) Basic information on other financial instruments such as gold preferred shares and perpetual bonds issued outside at the end of the period
Other equity instruments at the end of the period are the equity part of convertible corporate bonds. For the basic information of convertible corporate bonds please
refer to Note VII. (27) Bonds Payable.
(2) Changes in financial instruments such as preferred stocks and perpetual bonds issued at the end of the period
Unit: yuan
Financial instruments issued outside 1 January 2023 Additions in this period Reductions in this period
30 June 2023
Number Book value Number Book value Number Book value Number Book value
Convertible bonds 56310521.00 947863834.02 100.00 2035.66 56310421.00 947861798.36
Total 56310521.00 947863834.02 100.00 2035.66 56310421.00 947861798.36
The increase and decrease of other equity instruments in the current period the reasons for the changes and the basis for relevant accounting treatment:
A total of RMB 10000.00 (100 bonds) of A-share convertible bonds issued by the Company were converted into ordinary A-shares of the Company during the
period. As of June 30 2023 the Company's remaining convertible bond balance is RMB 5631042100.00 (56310421 bonds). For details please refer to Note VII.
(27) Bonds Payable.
158Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
32. Capital Reserves
Unit: yuan
Balance as at 1 January Reductions in this Balance as at 30 June
Items Additions in this period
2023 period 2023
Capital premium
13156287691.397397.0413156295088.43
(Equity premium)
Other capital reserves 115917468.82 115917468.82
Total 13272205160.21 7397.04 13272212557.25
Other notes including the increase and decrease in the current period and explanations for the reasons for the
changes:
The increase in capital premium is due to the conversion of convertible bonds into the Company’s A-share
ordinary shares.
159Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
33. Other Comprehensive Income
Unit: yuan
Current period
Less: included in Less: included in
other other comprehensive
Balance as at 1
Items Amount before
comprehensive Attributable to Balance as at 30
January 2023 income tax in the income in the
income in the Attributable to the
previous period previous period
Less: income tax parent company minority June 2023
current period and transferred to expense after tax shareholders after and transferred to
profit or loss in retained earnings
tax
the current period in the current period
I. Other
comprehensive
income that will
not be reclassified -15904760.02 -15904760.02
into profits and
losses
Changes in fair
value of other
equity instrument -15904760.02 -15904760.02
investments
Total other
comprehensive -15904760.02 -15904760.02
income
160Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
34. Special Reserves
Unit: yuan
Balance as at 1 January Reductions in this Additions in this period Balance as at 30 June Items 2023 period 2023
Safety production fee 2217913.77 34099757.81 7307318.69 29010352.89
Total 2217913.77 34099757.81 7307318.69 29010352.89
35. Surplus Reserves
Unit: yuan
Balance as at 1 January Reductions in this Additions in this period Balance as at 30 June Items
2023 period 2023
Statutory surplus
reserves 1195116522.37 1195116522.37
Total 1195116522.37 1195116522.37
36. Undistributed Profits
Unit: yuan
Items Current period Previous period
Undistributed profit at the end of the
previous year before adjustment -720559670.73 2977306297.64
Adjust the total undistributed profit at the
beginning of the year (increase +
decrease -)
Adjusted undistributed profit at the
beginning of the year -720559670.73 2977306297.64
Add: Net profit attributable to owners of
the parent company in the current period -1004945623.68 -1232976557.37
Less: Provision of statutory surplus
reserve 25416.40
Dividends payable on common
stock 2464914827.40
Undistributed profit at the end of the
period -1725505294.41 -720559670.73
Adjustment of undistributed profit details at the beginning of the period: due to the retrospective adjustment of
the “Accounting Standards for Business Enterprises” and related new regulations the undistributed profit at the
beginning of the period was affected by RMB 10592129.13.
161Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
37. Operating Income and Operating Costs
Unit: yuan
Current period Previous period
Items Revenue Costs Revenue Costs
Principal business 30178980302.21 30346840599.33 33109977666.90 31509788033.31
Other business 388428902.82 367800364.58 1905199638.08 1867689507.32
Total 30567409205.03 30714640963.91 35015177304.98 33377477540.63
Details of operating income:
Unit: yuan
Contract classification Principal business income Other business income Total
Classified by business area 30178980302.21 388428902.82 30567409205.03
Including:
Domestic 26612052408.77 388428902.82 27000481311.59
Abroad 3566927893.44 3566927893.44
Total 30178980302.21 388428902.82 30567409205.03
Classified by the time of
commodity transfer
Including:
Recognized at a certain point
in time 30178980302.21 387065834.86 30566046137.07
Recognized over a certain
period of time 1363067.96 1363067.96
Total 30178980302.21 388428902.82 30567409205.03
Information related to performance obligations:
None
Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period the amount of income corresponding to the performance obligations that
have been signed but not yet fulfilled or not fully fulfilled is 0.00 yuan.
38. Tax and surcharges
Unit: yuan
Items Current period Previous period
City maintenance and construction tax 6576796.79 4726087.15
Educational surcharge 4800732.70 3554726.34
Housing property tax 40884994.48 40822272.51
Land use right tax 6075969.40 6847915.75
Stamp duty 30849463.63 32496146.38
Environmental tax 9527874.78 11411384.22
Others 324845.97 26912.88
Total 99040677.75 99885445.23
162Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
39. Selling Expenses
Unit: yuan
Items Current period Previous period
Import and export agency fee 21131652.66 36702096.00
Salary and benefits 37771652.79 18244427.10
Package fee 4973464.77
Others 9615841.56 7510887.30
Sales service fee 1382736.23
Total 69901883.24 67430875.17
40. Administrative Expenses
Unit: yuan
Items Current period Previous period
Employee's salaries 206440312.89 149216492.01
Repair expenses 298281.38 105587548.07
Heating costs 34042689.20 19965273.48
Depreciation 19462599.70 22309498.45
land use fees 1322782.02 19696001.68
Environmental protection fees 4442540.02 1099369.60
Water resources fees 16331031.46 3176610.83
Others 57228784.82 31253889.98
Total 339569021.49 352304684.10
41. Research and Development Expenses
Unit: yuan
Items Current period Previous period
Depreciation materials and wages etc. 32990679.09 22368496.87
Total 32990679.09 22368496.87
42. Finance Costs
Unit: yuan
Items Current period Previous period
Interest expenses 234419462.35 342674208.42
Interest income -27351519.21 -61019147.27
Exchange gains and losses -49493753.99 5012400.26
Other expenses 3983576.72 6425946.41
Total 161557765.87 293093407.82
163Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
43. Other income
Unit: yuan
Sources of other income Current period Previous period
Government grant 2379198.73 30272965.00
Withholding personal income tax
handling fee 913893.41
Others 225000.00 382577.92
44. Investment Income
Unit: yuan
Items Current period Previous period
Long-term equity investment income
measured by equity method -439659.58 85455.22
Investment income from disposal of
long-term equity investment -294462.57
Investment income from disposal of
financial assets held-for-trading -2502067.50
Investment income from debt
restructuring 694683.35
Others 30387.62
Total -2541506.30 115842.84
45. Credit Impairment Losses
Unit: yuan
Items Current period Previous period
Bad debt loss of accounts receivable -35877008.41 2051653.20
Bad debt loss of other receivables 18426234.94 -2845559.93
Total -17450773.47 -793906.73
46. Asset Impairment Losses
Unit: yuan
Items Current period Previous period
Inventory falling price loss and
impairment loss on contract performance -84458260.66 -72880991.53
costs
Total -84458260.66 -72880991.53
47. Gains on Disposal of Assets
Unit: yuan
Sources of gains on disposal of assets Current period Previous period
Gains or losses on disposal of fixed
3648546.62
assets not classified as held for sale
164Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
48. Non-operating Income
Unit: yuan
Amount included in the
Items Current period Previous period current non-recurring gains
and losses
Gains from damage and
scrapping of non-current 17095345.19 711708.55 17095345.19
assets
Compensation for breach of
contract 980399.63 980399.63
Unpayable accounts payable 2447931.60 27948070.49 2447931.60
Others 31060871.61 1912502.31 31060871.61
Total 51584548.03 30572281.35 51584548.03
49. Non-operating Expenses
Unit: yuan
Amount included in the
Items Current period Previous period current non-recurring gains
and losses
Non-current asset damage and
scrapping loss 48484833.89 10765339.79 48484833.89
Fines compensation for
breach of contract 2072844.13 2072844.13
compensation payments
Others 27649.11 27649.11
Total 50585327.13 10765339.79 50585327.13
50. Income Tax Expenses
(1) Income tax expense table
Unit: yuan
Items Current period Previous period
Current income tax expenses 46665568.90 197785904.70
Deferred tax expenses -13473858.06 2719416.45
Total 33191710.84 200505321.15
165Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(2) Accounting profit and income tax expense adjustment process
Unit: yuan
Items Current period
Total profit -950225013.71
Income tax expense calculate according to the official or
applicable tax rate -242556253.43
Effect of adjusting prior period income taxes 22945743.75
Effect of non-taxable income -109914.90
Effect of non-deductible costs expenses or losses 100437.96
Effect of use of deductible losses of unrecognized deferred tax
asset of prior period -543713.22
The impact of deductible temporary differences or deductible
losses of deferred income tax assets not recognized in the 255856087.61
current period
Others -2500676.93
Income tax expenses 33191710.84
51. Other Comprehensive Income
Please refer to Note VII. 33.
52. Notes of Statement of Cash Flows
(1) Cash received from other operating activities
Unit: yuan
Items Current period Previous period
Recover current payment and advance
payment 36965273.21 97205274.52
Interest income 27351519.21 61019147.27
Special subsidies and grants 850000.00 9690000.00
Others 980399.63 804702.43
Total 66147192.05 168719124.22
(2) Cash paid for other operating activities
Unit: yuan
Items Current period Previous period
Current payment with different entities 28422075.16 22514446.73
Administrative expenses 112917219.14 168184142.54
Selling expenses 32130230.45 50910874.42
Handling fee 3983576.72 6425946.41
Others 1023567.21
Total 177453101.47 249058977.31
166Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(3) Cash received from other financing activities
Unit: yuan
Items Current period Previous period
Margin for bill letter of guarantee and
letter of credit 299914718.38 2548792921.60
Total 299914718.38 2548792921.60
(4) Cash paid for other financing activities
Unit: yuan
Items Current period Previous period
Margin for bill letter of guarantee and
letter of credit 695121631.51 71693646.43
Total 695121631.51 71693646.43
53. Supplementary Information to Cash Flow Statement
(1) Supplementary information to cash flow statement
Unit: yuan
Supplementary information Current period Previous period
1. Reconciliation of net profit to cash flows
from operating activities
Net profit -983416724.55 579963876.24
Add: Impairment of assets 101909034.13 72880991.53
Depreciation of fixed assets
depreciation of oil and gas assets depreciation 823089855.07 1105263552.94
of productive biological assets
Depreciation of right-of-use assets 30187267.26 30187267.22
Amortization of intangible assets 3039005.87 3690085.26
Amortization of long-term deferred
expenses
Losses on disposal of fixed assets
intangible assets and other long-term assets("- -3648546.62
" for net income)
Losses on retirement of fixed assets("-" for
net income) 31389488.70 10053631.24
Losses from changes in fair value("-" for
net income)
Finance expenses("-" for net income) 184925708.36 342674208.42
Investment loss("-" for net income) 2541506.30 -115842.84
Decrease in deferred tax assets("-" for
increase) -11622984.29 5419049.90
Increase in deferred tax liabilities("-" for
decrease)
Decrease in inventory("-" for increase) 784701660.05 1435572851.38
167Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Decrease in operating receivables("-" for
increase) -816626771.10 2160572533.72
Increase in operating payables("-" for
decrease) 4512520236.01 -5468912532.78
Others -46149283.40
Net cash flow from operating activities 4662637281.81 227451842.21
2. Significant investment and financing
activities that do not involve cash receipts and
payments:
Conversion of debt into capital
Convertible corporate bonds due within one
year
Leasing of fixed assets through financing
3. Net changes in cash and cash equivalents:
Closing balance of cash 3135535935.14 4750473298.51
Less: Opening balance of cash 1296662683.20 6299099063.48
Add: Closing balance of cash equivalents
Less: Opening balance of cash
Net increase in cash and cash equivalents 1838873251.94 -1548625764.97
(2) Composition of cash and cash equivalents
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
I. Cash 3135535935.14 1296662683.20
Bank deposits available for payment
3135535935.141296662683.20
at any time
II. Balance of cash and cash equivalents
3135535935.141296662683.20
at the end of the period
54. Assets whose Ownership or Use Rights Are Restricted
Unit: yuan
Items Balance as at 30 June 2023 Reason for restriction
Monetary funds 521023596.93 Deposit for notes and letter of credit
Notes receivable 255189626.40 Pledge for banker's acceptance bill
Total 776213223.33
168Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
55. Foreign Currency Monetary Items
(1) Foreign currency monetary items
Unit: yuan
Items Closing balance of foreign currency Translation rate
Closing balance converted
into RMB
Monetary funds 562525888.30
Including: U.S. Dollar 77083100.68 7.2258 556987068.89
Euro 2840.49 7.8771 22374.82
Hong Kong Dollar 5983128.62 0.9220 5516444.59
Long-term borrowings
Including: U.S. Dollar
Euro
Hong Kong Dollar
Japanese yen 104292000.00 0.0501 5225029.20
(2) Instructions for overseas operating entities including for important overseas operating entities their
main overseas business location functional currency for bookkeeping and the basis for selection should
be disclosed and the reasons for changes in the functional currency for bookkeeping should also be
disclosed.□Applicable □Not applicable
169Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
56. Government Grants
(1) Government grants related to assets
Unit: yuan
Items presented in the
Types Amount Amount included in current
statement of financial position profit and loss
Research and development of
the third-generation high- 2900000.00 Deferred income 290000.00
strength steel for automobiles
Carbon fiber wastewater
advanced treatment project in
Deferred income
Dongfeng plant area of sheet 9500000.00 950000.00
metal coking plant
Desulfurization and
denitrification project of coal-
fired boiler in high-voltage 6000000.00 Deferred income 300000.00
workshop of Benxi Iron and
Steel Power Plant
Air Pollution Prevention and
Control Fund - Second
Sintering Cleaning and Dust 2050000.00 Deferred income 205000.00
Removal Ultra-low Emission
Transformation Project
2021 Special Fund Project for
Intellectual Manufacturing
Deferred income
and Strengthening the 8100000.00
Province
2021 Benxi City Pollution
Control and Energy
Conservation and Carbon
Reduction Special Project 1500000.00 Deferred income 44117.65
(Converter Gas Recovery and
Efficiency Improvement
Transformation Project)
2021 Municipal Skillmaster
Workstation Fees 80000.00
Deferred income 81.08
The 2018 Liaoning Provincial
"Hundred Thousands of
250000.00 Deferred income Talents Project" Funding
Project
2018 Municipal Skillmaster
Deferred income
Workstation Fees 240000.00
170Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
2019 Municipal Skillmaster
Workstation Fees 180000.00
Deferred income
2020 special ecological
civilization construction
Deferred income
project (special steel electric 20000000.00
furnace upgrade project)
Liaoning Artisan Subsidy 180000.00 Deferred income
Flue gas desulfurization
project of seven 130-ton
Deferred income
combustion boilers in a power 24000000.00
plant
Fund for cogeneration
renovation project of the third
Deferred income
electric workshop of the 10000000.00
power plant
Cold-rolled high-strength
steel transformation project 250000000.00
Deferred income
(2) Return of government grants
□Applicable □Not applicable
(3) Government grants related to income
Amount included in the current
profit and loss or offsetting Items included in current profit or
Types Amount related costs and expenses loss or written off related costs
Current Previous and expenses
period period
Effect mechanism and control of rare earth
oxysulfide on the plasticity of automobile Other income
547040.00122965.00
steel
2021 Benxi City Expert Talent and
Other income
Enterprise Docking Project 10000.00 5000.00
Design of rare earth steel metallurgical slag
system and research on its physical and Other income
340000.00
chemical properties
Provincial Science and Technology
Department National Natural Science
Other income
Foundation of China-Liaoning Provincial 334000.00
Government Joint Fund Project
2019 Provincial Skill Master Workstation
Other income
Fees 200000.00
171Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
2020 Provincial Skillmaster Workstation
Other income
Fees 100000.00
Basic research on the new technology of
composite iron coke low-carbon Other income
168000.00
ironmaking charge
In 2021 the second batch of planned
projects of Liaoning Provincial Central
Other income
Government Guidance for Local Science 300000.00
and Technology Development Funds
The 2020 Liaoning Provincial "Hundred
Thousands of Talents Project" Funding Other income
50000.0050000.00
Project
Provincial Science and Technology
Department 2022 Liaoning Provincial Other income
30000.00
Natural Science Foundation Project Fund
In 2022 Liaoning will become a strong
Other income
province with digital intelligence 300000.00
Municipal enterprise operation patent
Other income
navigation project funding subsidy 200000.00
"Xingliao Talents Program" government
Other income
subsidy 350000.00
57. Others
As lessee
Items Current period Previous period
Interest expense on the lease liabilities 27047108.38 27576079.44
Simplified short-term lease expenses included in relevant asset
costs or current profit and loss
Simplified rental expenses of low-value assets included in
relevant asset costs or current profit and loss (except for short-
term rental expenses of low-value assets)
Variable lease payments not included in the measurement of
lease liabilities that are included in the cost of related assets or
current profit and loss
Including: the part generated by the sale and leaseback
transaction
Income from sub-leasing of right-of-use assets
Total cash outflows related to leases 46640413.20 46846358.31
Related gains and losses arising from sale and leaseback
transactions
Cash inflow from sale and leaseback transactions
Cash outflow from sale and leaseback transactions
172Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
VIII. Changes in the Scope of Consolidation
1. Others
There is no change in the scope of consolidation in this period.IX. Interests in Other Entities
1. Interests in Subsidiaries
(1) Composition of the corporate group
Shareholding
Principal place Registered Nature of
Name of the subsidiaries ratio Acquiring method
of business address business
Direct Indirect
Guangzhou Bensteel Trading
Guangzhou Guangzhou Sale 100 Set up Co. Ltd.Shanghai Bensteel
Metallurgical Technology Co. Shanghai Shanghai Sale 100 Set up
Ltd.Dalian Benruitong Automotive
Dalian Dalian Production 65 Set up
Material Technology Co. Ltd.Bengang Puxiang Cool Rolling Business combination
Benxi Benxi Production 75
Steel Sheet Co. Ltd. under common control
Changchun Bensteel Sales Co. Business combination
Changchun Changchun Sale 100
Ltd. under common control
Yantai Bengang Iron and Steel Business combination
Yantai Yantai Sale 100
Sales Co. Ltd. under common control
Tianjin Bengang Iron and Steel Business combination
Tianjin Tianjin Sale 100
Trading Co. Ltd. under common control
Benxi Bensteel Sales Co. Ltd. Benxi Benxi Sale 100 Set up
Shenyang Bensteel
Metallurgical Technology Co. Shenyang Shenyang Sale 100 Set up
Ltd.Explanation on the difference between the shareholding ratio in the subsidiary and the voting right ratio:
There is no such matter in the Company.Basis for holding half or less of the voting rights but still controlling the invested entity and holding more than
half of the voting rights but not controlling the invested entity:
173Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
There is no such matter in the Company.For important structured entities included in the scope of consolidation the basis for control:
There is no such matter in the Company.
(2) Significant but not wholly-owned subsidiaries
Unit: yuan
Profits and losses Dividend declared to
Closing
Name of the Proportion of non- attributing to non- distribute to non-
balance of non-
subsidiaries controlling interests (%) controlling controlling
controlling interests
shareholders shareholders
Bengang Puxiang Cool
Rolling Steel Sheet 25.00% 17461806.81 595620461.21
Co. Ltd.Explanation for the shareholding ratio of minority shareholders of subsidiaries different from the ratio of voting
rights:
There is no such matter in the Company.
174Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(3) Main financial information of important non-wholly owned subsidiaries
Unit: yuan
Balance as at 30 June 2023 Balance as at 1 January 2023
Name of the subsidiaries Non-current Current Non-current Non-current Current Non-current
Current assets Total assets Total liabilities Current assets Total assets Total liabilities
assets liabilities liabilities assets liabilities liabilities
Bengang Puxiang Cool
Rolling Steel Sheet Co. 3611025289.22 984679076.32 4595704365.54 2213222520.70 2213222520.70 2642318664.91 1031753449.22 3674072114.13 1370714059.80 1370714059.80
Ltd.Unit: yuan
Current period Previous period
Name of the Total Net cash flows Total Net cash flows
subsidiaries Operating income Net profit comprehensive from operating Operating income Net profit comprehensive from operating
income activities income activities
Bengang Puxiang
Cool Rolling Steel 4253071574.21 69847227.23 69847227.23 171658194.18 5229533000.35 91532242.77 91532242.77 306038909.09
Sheet Co. Ltd.
175Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
2. Interests in Joint Arrangements or Associates
(1) Important joint ventures or associates
Explanation for the shareholding ratio in joint ventures or associates that is different from the voting rights ratio:
The Company has no significant joint ventures or associates.X. Risks Associated with Financial Instruments
The Company faces various financial risks in the course of operation: credit risk liquidity risk and market risk
(including exchange rate risk interest rate risk and other price risks). The above financial risks and the risk
management policies adopted by the Company to reduce these risks are as follows:
The Board of Directors is responsible for planning and establishing the Company's risk management structure
formulating the Company's risk management policies and relevant guidelines and supervising the
implementation of risk management measures. The Company has formulated risk management policies to
identify and analyze the risks faced by the Company. These risk management policies clearly stipulate specific
risks covering many aspects such as market risk credit risk and liquidity risk management. The Company
regularly evaluates changes in the market environment and the Company’s business activities to determine
whether to update risk management policies and systems. The Company’s risk management is carried out by the
Risk Management Committee in accordance with the policies approved by the Board of Directors. The Risk
Management Committee identifies evaluates and avoids relevant risks through close cooperation with other
business departments of the company. The company’s internal audit department conducts regular audits on risk
management controls and procedures and reports the audit results to the company's audit committee.The overall goal of the Company’s risk management is to formulate risk management policies that reduce risks
as much as possible without excessively affecting the Company’s competitiveness and resilience.
1. Credit risk
Credit risk refers to the risk that the counterparty fails to perform its contractual obligations and cause financial
losses to the Company.The Company mainly faces customer credit risk caused by credit sales. Before entering into a new contract the
Company conducts an assessment of the credit risk of the new client including an external credit rating and in
some cases bank references (when this information is available). The Company sets a credit sales limit for each
customer which is the maximum amount that does not require additional approval.The Company ensures that the company's overall credit risk is within a controllable range through regular
monitoring of existing customer credit ratings and regular review of accounts receivable aging analysis. When
monitoring the credit risk of customers group them according to their credit characteristics. Customers rated as
“high risk” will be placed on a restricted customer list and only with additional approval the Company can sell
to them on credit in the future otherwise they must be required to pay the corresponding amount in advance.
176Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
2. Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligations for settlement by
delivery of cash or other financial assets.It is the Company's policy to ensure that it has sufficient cash to meet debt obligations as they fall due. Liquidity
risk is centrally controlled by the Company's financial department. The financial department ensures that the
company has sufficient funds to repay debts under all reasonable forecasts by monitoring cash balances
marketable securities that can be realized at any time and rolling forecasts of cash flows for the next 12 months.At the same time continue to monitor whether the company complies with the provisions of the loan agreement
and obtain commitments from major financial institutions to provide sufficient backup funds to meet short-term
and long-term funding needs.The Company's various financial liabilities are listed as follows in terms of undiscounted contractual cash flow
by maturity date:
Amount unit: RMB ten thousand
Balance as at 30 June 2023
Items Repayment on
demand Within 1 year 1-2 years 2-5 years Over 5 years Total
Trade and other
payables 920298.97 920298.97
Borrowing and
interest 252786.75 40752.91 83945.86 377485.52
Total 1173085.72 40752.91 83945.86 1297784.49
Balance as at 1 January 2023
Items Repayment on
demand Within 1 year 1-2 years 2-5 years Over 5 years Total
Trade and other
payables 693670.74 693670.74
Borrowing and
interest 494568.82 255904.22 678612.89 695.49 1429781.42
Total 1188239.56 255904.22 678612.89 695.49 2123452.16
3. Market risk
The market risk of financial instruments refers to the risk of fluctuations in the fair value or future cash flow of
financial instruments due to changes in market prices including exchange rate risk interest rate risk and other
price risks.
177Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(1) Interest rate risk
Interest rate risk refers to the risk of fluctuations in the fair value of financial instruments or future cash flows
due to changes in market interest rates.The interest rate risk faced by the Company mainly comes from floating-rate bank deposits and floating-rate
loans to bear the cash flow interest rate risk. The Company has not formulated a policy to manage its interest
rate risk but the management will carefully choose financing methods combining fixed and floating interest
rates short-term debt and long-term debt. Utilize effective interest rate risk management methods closely
monitor interest rate risk 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 of fluctuations in the fair value of financial instruments or future cash flows
due to changes in foreign exchange rates.The Company continuously monitors the scale of foreign currency transactions and foreign currency assets and
liabilities to minimize the foreign exchange risk it faces. In addition the Company may also sign forward
foreign exchange contracts or currency swap contracts to achieve the purpose of avoiding exchange rate risks.During the reporting period the Company did not sign any forward foreign exchange contracts or currency
swap contracts.The exchange rate risk faced by the Company mainly comes from the financial assets and financial liabilities
denominated in US dollars. The amount of foreign currency financial assets and foreign currency financial
liabilities converted into RMB is listed as follows:
Amount unit: RMB ten thousand
Balance as at 30 June 2023 Balance as at 1 January 2023
Items Other foreign Other foreign US dollar Total US dollar Total
currency currency
Assets
55698.71553.8856252.594428.43495.124923.55
Liabilities
522.50522.504979.6921521.1326500.82
Total
55698.711076.3856775.099408.1222016.2531424.37
On June 30 2023 with all other variables held constant if the exchange rates of the U.S. dollar the euro and
the Japanese yen against the renminbi appreciate or depreciate by 5% then the Company will increase or
decrease the net profit by RMB 27.865 million (31 December 2022: RMB 10.7886 million). The management
believes that 5% reasonably reflects the reasonable range of possible changes of the US dollar Euro and
Japanese yen against RMB in the next year.
178Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
XI. Disclosure of Fair Value
1. Closing Fair Value of Assets and Liabilities Measured at Fair Value
Unit: yuan
Closing fair value
Items The first level of fair The second level of fair The third level of fair Total
value measurement value measurement value measurement
I. Continuous fair value
measurement -- -- -- --
◆Accounts receivable
953938535.80953938535.80
financing
◆Other equity
1020418482.311020418482.31
instruments
Total assets
continuously measured 1974357018.11 1974357018.11
at fair value
II. Non-continuous fair
value measurement -- -- -- --
2. The basis for determining the market value of the continuous and non-continuous first-level fair
value measurement projects
The Company has no first level fair value measurement project.
3. Continuous and non-continuous second-level fair value measurement items using valuation
techniques and qualitative and quantitative information on important parameters
The Company has no second level fair value measurement items.
4. Continuous and non-continuous third-level fair value measurement items using valuation
techniques and qualitative and quantitative information on important parameters
Other equity instrument investments that continue to be measured at the third level of fair value are unlisted
equity investments held by the Company.The receivable financing of continuous third-level fair value measurement is the banker’s acceptance bill held
by the Company and its fair value is confirmed with reference to the face value.The Company uses valuation techniques for fair value measurement mainly using the valuation techniques of
the non-listed company comparison method.
179Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
5. Others
The input values used in fair value measurement are divided into three levels:
The first-level input value is the unadjusted quoted price in an active market for the same asset or liability that
can be obtained on the measurement date.The second-level input value is the directly or indirectly observable input value of the relevant asset or liability
other than the first-level input value.The third-level input value is the unobservable input value of related assets or liabilities.The level to which the fair value measurement results belong is determined by the lowest level to which the
input values that are important to the fair value measurement as a whole belong.XII. Related Party and Related Party Transactions
1. Information about the Parent of the Company
The parent
company's Proportion of
Name of parent Registration place Business nature Registered capital (100 million yuan) shareholding
voting rights of the
percentage in the parent company to
Company(%) the Company(%)
Benxi Steel and
Iron (Group) Co. Benxi Liaoning Manufacturing 74.01 58.65% 58.65%
Ltd.Explanation of the parent company of the Company
The ultimate controlling party of the Company is Ansteel Group Co. Ltd.
2. Subsidiaries of the Company
For the details of the Company's subsidiaries please refer to "IX. Interests in Other Entities" in this note.
3. The Company's Joint Ventures and Associates
For details of the important joint ventures or associates of the Company please refer to "IX. Interests in other
entities" in this note.
180Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
4. Situation of Other Related Parties
Name of other related parties Relationship between other related parties and the Company
Bengang Group Co. Ltd. Controlling shareholder of the parent company
Ansteel Electric Co. Ltd. Both belong to Ansteel Group
Ansteel Scrap Resources (Anshan) Co. Ltd. Both belong to Ansteel Group
Ansteel Scrap Resources (Anshan) Co. Ltd. Chaoyang Branch Both belong to Ansteel Group
Ansteel Processing and Distribution (Dalian) Co. Ltd. Both belong to Ansteel Group
Ansteel Processing and Distribution (Changchun) Co. Ltd. Both belong to Ansteel Group
Ansteel Processing and Distribution (Zhengzhou) Co. Ltd. Both belong to Ansteel Group
Ansteel Distribution (Hefei) Co. Ltd. Both belong to Ansteel Group
Ansteel Distribution (Wuhan) Co. Ltd. Both belong to Ansteel Group
Ansteel Rope Co. Ltd. Both belong to Ansteel Group
Ansteel Co. Ltd. Both belong to Ansteel Group
Ansteel Chemical Technology Co. Ltd. Both belong to Ansteel Group
Ansteel Group (Anshan) Railway Transportation Equipment
Both belong to Ansteel Group
Manufacturing Co. Ltd.Ansteel Group Finance Co. Ltd. Both belong to Ansteel Group
Ansteel Group Engineering Technology Development Co. Ltd. Both belong to Ansteel Group
Ansteel Group Engineering Technology Co. Ltd. Associate of Ansteel Group
Ansteel Group International Economic and Trade Co. Ltd. Both belong to Ansteel Group
Ansteel Group Mining Gongchangling Co. Ltd. Both belong to Ansteel Group
Ansteel Group Mining Co. Ltd. Both belong to Ansteel Group
Ansteel Group Co. Ltd. Both belong to Ansteel Group
Ansteel Group Automation Co. Ltd. Both belong to Ansteel Group
Ansteel Construction Group Co. Ltd. Both belong to Ansteel Group
Ansteel Metal Structure Co. Ltd. Both belong to Ansteel Group
Ansteel Technology Development Co. Ltd. Both belong to Ansteel Group
Ansteel Mining Machinery Manufacturing Co. Ltd. Both belong to Ansteel Group
Ansteel Green Resources Technology Co. Ltd. Both belong to Ansteel Group
Ansteel Energy Technology Co. Ltd. Both belong to Ansteel Group
Ansteel Industrial Group (Anshan) Equipment Operation and
Both belong to Ansteel Group
Maintenance Co. Ltd.Ansteel Industrial Group Metallurgical Machinery Co. Ltd. Both belong to Ansteel Group
Ansteel Shuangsheng (Anshan) Fan Co. Ltd. Both belong to Ansteel Group
Ansteel Modern City Service (Anshan) Co. Ltd. Both belong to Ansteel Group
Ansteel Roll Co. Ltd. Both belong to Ansteel Group
Ansteel Heavy Machinery Design and Research Institute Co.Both belong to Ansteel Group
Ltd.Ansteel Heavy Machinery Co. Ltd. Both belong to Ansteel Group
Ansteel Cast Steel Co. Ltd. Both belong to Ansteel Group
North Hengda Logistics Co. Ltd. Both belong to Bengang Group
Bengang Stainless Steel Cold Rolling Dandong Co. Ltd. Same parent company
Bengang Electric Co. Ltd. Associate of parent company
Bengang Group Finance Co. Ltd. Both belong to Bengang Group
Bengang Group International Economic and Trade Co. Ltd. Both belong to Bengang Group
Bengang Tendering Co. Ltd. Both belong to Bengang Group
Benxi Beitai Casting Pipe Co. Ltd. Both belong to Bengang Group
Benxi Beiying Iron and Steel (Group) Co. Ltd. Both belong to Bengang Group
Benxi Iron and Steel (Group) Real Estate Development Co.Same parent company
Ltd.Benxi Iron and Steel (Group) Engineering Construction Same parent company
Supervision Co. Ltd.
181Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Benxi Iron and Steel (Group) Machinery Manufacturing Co. Same parent company
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 Iron and Steel (Group) Equipment Engineering Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Design and Research Institute Same parent company
Benxi Iron and Steel (Group) Industrial Development Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Information Automation Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Construction Co. Ltd. Same parent company
Benxi Iron and Steel (Group) Metallurgical Slag Co. Ltd. Same parent company
Benxi Steel and Iron (Group) Co. Ltd. Parent company
Benxi Iron and Steel (Group) Chint Building Materials Co.Same parent company
Ltd.Benxi High-tech Drilling Tools Manufacturing Co. Ltd. Both belong to Bengang Group
Benxi New Business Development Co. Ltd. Same parent company
Chengdu Pangang Hotel Co. Ltd. Both belong to Ansteel Group
Dalian Borolle Steel Pipe Co. Ltd. Same parent company
Delin Industrial Products Co. Ltd. Both belong to Ansteel Group
Delin Lugang Supply Chain Service Co. Ltd. Both belong to Ansteel Group
Guangzhou Angang Steel Processing Co. Ltd. Both belong to Ansteel Group
Guangzhou Free Trade Zone Benxi Steel Sales Co. Ltd. Same parent company
Liaoning Hengtai Heavy Machinery Co. Ltd. Same parent company
Liaoning Hengyi Steel Trading Co. Ltd. Both belong to Bengang Group
Liaoning Metallurgical Technician College Same parent company
Liaoning Vocational and Technical College of Metallurgy Same parent company
Pangang Group Xichang Steel and Vanadium Co. Ltd. Both belong to Ansteel Group
Panzhong Yihong Metal Products (Chongqing) Co. Ltd. Both belong to Ansteel Group
Suzhou Longben Metal Materials Co. Ltd. Hold an equity interest in the company
Tianjin Angang Steel Processing and Distribution Co. Ltd. Both belong to Ansteel Group
Tianjin Ansteel International North Trading Co. Ltd. Both belong to Ansteel Group
Wuhan Yuanhong Trading Co. Ltd. Hold an equity interest in the company
Changchun FAW Angang Steel Processing and Distribution
Both belong to Ansteel Group
Co. Ltd.Ansteel Tendering Co. Ltd. Both belong to Ansteel Group
5. Situation of Related Party Transactions
(1) Related party transactions of purchasing or selling goods rendering and receiving services
Table of purchase of goods/receiving of services
Unit: yuan
Whether the
Related parties Related transaction Amount in this
Approved
transaction amount transaction limit is Amount in content period (if applicable) exceeded (if previous period applicable)
Ansteel Electric
Co. Ltd. Repair service 261249.99 Yes
Ansteel Scrap
Resources Raw materials 370082138.82 1300000000.00 No 96065566.10
(Anshan) Co. Ltd.
182Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Ansteel Steel
Processing and
Distribution Service fee No 11353.84
(Dalian) Co. Ltd.
Ansteel Rope Co.Ltd. Spare parts 169538.40 10000000.00 No
Ansteel Co. Ltd. Raw fuel No 75504413.81
Ansteel Group
(Anshan) Railway
Transportation
Equipment Spare parts 872000.00 Yes
Manufacturing
Co. Ltd.Ansteel Group
Finance Co. Ltd. Financial services 303708.86 Yes
Ansteel Group
Engineering Engineering
Technology Co. design 512000.00 Yes
Ltd.Ansteel Group
Engineering Construction and
Technology Co. installation 117959759.13 23000000.00 Yes
Ltd.Ansteel Group
Engineering
Technology Co. Equipment 76337521.60 Yes
Ltd.Ansteel Group
Engineering
Technology Co. Repair service 260000.00 Yes
Ltd.Ansteel Group
International
Economic and Raw materials No 8328324.66
Trade Co. Ltd.Ansteel Group
Mining
Gongchangling Raw materials 200408297.44 500000000.00 No 238405486.63
Co. Ltd.Ansteel Group
Automation Co. Software 47055000.00 230000000.00 No
Ltd.Ansteel
Construction Project costs No 21192660.55
Group Co. Ltd.Ansteel
Technology Research and
Development Co. development 633962.27 Yes
Ltd. service
Ansteel Industrial
Group (Anshan)
Equipment
Operation and Labor service 3253333.20 10000000.00 No
Maintenance Co.Ltd.Ansteel Industrial
Group
Metallurgical Repair service 5097094.81 Yes 563736.00
Machinery Co.Ltd.Angang
Shuangsheng
(Anshan) Fan Co. Spare parts 69000.00 Yes
Ltd.
183Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Ansteel Heavy
Machinery Co. Repair service 1565966.00 Yes
Ltd.North Hengda
Logistics Co. Ltd. Processing fee 599384.02 Yes
North Hengda
Logistics Co. Ltd. Raw material 942680.16 Yes
North Hengda Transportation and
Logistics Co. Ltd. storage Fees 66562921.54 30000000.00 Yes 14102106.06
Bengang Electric
Co. Ltd. Spare parts 53735396.26 200000000.00 No
Bengang Electric
Co. Ltd. Repair service 3857674.29 Yes
Bengang Electric
Co. Ltd. Raw materials No 65419935.95
Bensteel Group
International
Economic and Agency service 32464379.89 200000000.00 No 133605645.86
Trade Co. Ltd.Bensteel Group
Co. Ltd. Rental fees 4972711.56 100000000.00 No 1947299.50
Benxi Beiying Iron
and Steel (Group) Inspection fees 71796.00 Yes
Co. Ltd.Benxi Beiying Iron
and Steel (Group) Energy power 329215977.30 800000000.00 No 354632805.17
Co. Ltd.Benxi Beiying Iron
and Steel (Group) Repair service 2163383.85 100000000.00 No 46977784.13
Co. Ltd.Benxi Beiying Iron
and Steel (Group) Raw materials 6177881267.18 15080000000.00 No 6247319985.72
Co. Ltd.Benxi Beiying Iron
and Steel (Group) Rental fees 5979849.05 Yes
Co. Ltd.Benxi Iron and
Steel (Group)
Engineering
Construction Supervision fee 836573.63 Yes
Supervision Co.Ltd.Benxi Iron and
Steel (Group)
Machinery Spare parts 29846785.48 120000000.00 No 23012269.46
Manufacturing
Co. Ltd.Benxi Iron and
Steel (Group)
Machinery Labor service 4456401.89 80000000.00 No 38577078.16
Manufacturing
Co. Ltd.Benxi Iron and
Steel (Group)
Machinery Equipment fees 8487520.00 Yes
Manufacturing
Co. Ltd.Benxi Iron and
Steel (Group)
Machinery Raw materials 2940750.95 Yes
Manufacturing
Co. Ltd.
184Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Benxi Iron and
Steel (Group)
Machinery Rental fees 16578454.81 Yes
Manufacturing
Co. Ltd.Benxi Iron and
Steel (Group)
Construction Co. Spare parts 4854600.01 No 4646764.56
Ltd.Benxi Iron and
Steel (Group) Construction and
Construction Co. installation 184925593.15 No 90638976.00
Ltd.Benxi Iron and
Steel (Group)
Construction Co. Brokerage agent 3156976.43 No
Ltd.Benxi Iron and
Steel (Group)
Construction Co. Labor service 9511440.90 585000000.00 No
Ltd.Benxi Iron and
Steel (Group)
Construction Co. Equipment fees 48514680.00 No
Ltd.Benxi Iron and
Steel (Group)
Construction Co. Raw materials 2783241.40 No 4646764.56
Ltd.Benxi Iron and
Steel (Group) Transportation
Construction Co. service 358232.94 No
Ltd.Benxi Iron and
Steel (Group) Service fee No 2613517.18
Mining Co. Ltd.Benxi Iron and
Steel (Group) Raw materials 1981592292.78 8950000000.00 No 3510974470.81
Mining Co. Ltd.Benxi Iron and
Steel (Group)
Thermal Power Heating costs 293698.06 Yes 708146.88
Development Co.Ltd.Benxi Iron and
Steel (Group)
Thermal Power Raw materials 142424.64 Yes 35759.46
Development Co.Ltd.Benxi Iron and
Steel (Group)
Equipment Spare parts 527996.85 No
Engineering Co.Ltd.Benxi Iron and
Steel (Group)
Equipment Construction and
Engineering Co. installation
52248696.53 No
Ltd.Benxi Iron and
Steel (Group)
Equipment Labor service 16676640.31 No 17144271.62
Engineering Co.Ltd.
185Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Benxi Iron and
Steel (Group)
Equipment Equipment fees 78905792.00 No
Engineering Co.Ltd.Benxi Iron and
Steel (Group)
Equipment Repair service 33669653.98 100000000.00 No 5748486.32
Engineering Co.Ltd.Benxi Iron and
Steel (Group)
Equipment Raw materials 3413348.23 No 2058346.87
Engineering Co.Ltd.Benxi Iron and
Steel (Group)
Equipment Transportation 562115.92 No
Engineering Co. service
Ltd.Benxi Iron and
Steel (Group)
Industrial Office equipment 293726.74 No
Development Co.Ltd.Benxi Iron and
Steel (Group)
Industrial Construction and
Development Co. installation
184024.72 No
Ltd.Benxi Iron and
Steel (Group)
Industrial Labor service 582738.30 No
Development Co.Ltd.Benxi Iron and
Steel (Group)
Industrial Daily necessities 1826368.18 No
Development Co.Ltd.Benxi Iron and
Steel (Group)
Industrial Repair service 446808.00 No 443449.54
Development Co.Ltd.Benxi Iron and
Steel (Group)
Industrial Raw materials 9559452.37 600000000.00 No 52820474.67
Development Co.Ltd.Benxi Iron and
Steel (Group)
Industrial Transportation
Development Co. service
3030721.77 No
Ltd.Benxi Iron and
Steel (Group)
Information Spare parts 16818802.44 No 4990030.05
Automation Co.Ltd.Benxi Iron and
Steel (Group)
Information Construction and
Automation Co. installation
897468.01 No 18816098.36
Ltd.
186Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Benxi Iron and
Steel (Group)
Information Software 58674627.61 100000000.00 No
Automation Co.Ltd.Benxi Iron and
Steel (Group)
Information Repair service 548300.00 No 910634.86
Automation Co.Ltd.Benxi Iron and
Steel (Group)
Metallurgical Slag Raw materials 123153136.39 300000000.00 No 139381388.64
Co. Ltd.Benxi Steel and
Iron (Group) Co. Financial services 1406819.97 No
Ltd.Benxi Steel and
Iron (Group) Co. Energy power 208218.19 No
Ltd.Benxi Steel and
Iron (Group) Co. Daily necessities 2602.04 No
Ltd.Benxi Steel and
Iron (Group) Co. Equipment
Ltd. inspection
2150000.00 No
Benxi Steel and
Iron (Group) Co. Repair service 85545984.60 350000000.00 No 122783160.52
Ltd.Benxi Steel and
Iron (Group) Co. Raw materials 221106.88 No
Ltd.Benxi Steel and
Iron (Group) Co. Transportation service 70844.04 No Ltd.Benxi Steel and
Iron (Group) Co. Rental fees 35687852.59 No 30187267.22
Ltd.Benxi High-tech
Drilling Tools
Manufacturing Spare parts No 71251.70
Co. Ltd.Benxi New
Business
Development Co. Spare parts 8892.94 Yes
Ltd.Benxi New
Business Catering and
Development Co. accommodation 608112.36 Yes
Ltd.Benxi New
Business
Development Co. Daily necessities 157261.01 Yes
Ltd.Chengdu Pangang Catering and
Hotel Co. Ltd. accommodation 937.74 Yes
Dalian Borolle
Steel Pipe Co. Raw materials 599495.23 Yes
Ltd.Delin Industrial
Products Co. Ltd. Office equipment 682715.44 Yes
Delin Industrial
Products Co. Ltd. Spare parts 14447322.53 Yes
Delin Industrial
Products Co. Ltd. Raw materials 8538.92 Yes
187Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Liaoning Hengtai
Heavy Machinery Construction and 1044084.00 No
Co. Ltd. installation
Liaoning Hengtai
Heavy Machinery Equipment 12130000.00 No
Co. Ltd.Liaoning Hengtai
Heavy Machinery Repair service 25586655.43 50000000.00 No 3363187.60
Co. Ltd.Liaoning Hengtai
Heavy Machinery Raw materials 619327.43 No 1158044.41
Co. Ltd.Liaoning Hengtai
Heavy Machinery Transportation
Co. Ltd. service
35137.61 No
Liaoning
Hengtong
Metallurgical
Equipment Raw materials No 66215321.16
Manufacturing
Co. Ltd.Liaoning
Metallurgical
Technician Training fee No 580509.17
College
Table for sale of goods/render of services
Unit: yuan
Related parties Related transaction content Amount in this period Amount in previous period
Angang Steel Processing and
Goods
Distribution (Dalian) Co. Ltd. 27577837.53
Angang Steel Processing and
Distribution (Changchun) Co. Goods 2003478.27
Ltd.Angang Steel Processing and
Distribution (Zhengzhou) Co. Goods 10433394.39
Ltd.Angang Steel Distribution (Hefei)
Goods
Co. Ltd. 9109492.59
Angang Steel Distribution
Goods
(Wuhan) Co. Ltd. 55103512.47
Ansteel Co. Ltd. Goods 94339.62 33602226.06
Ansteel Chemical Technology
Goods
Co. Ltd. 46858532.33 85184242.50
Ansteel Group Mining Co. Ltd. Goods 6415.09
Ansteel Construction Group Co.Energy power
Ltd. 24962.53
Ansteel Green Resources
Goods
Technology Co. Ltd. 8928632.16 14016402.04
Ansteel Green Resources
Raw materials and spare parts
Technology Co. Ltd. 70586829.06
Ansteel Energy Technology Co.Raw materials and spare parts
Ltd. 97132.19
Ansteel Energy Technology Co.Energy power
Ltd. 7772270.08
Ansteel Cast Steel Co. Ltd. Goods 87707.40
188Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
North Hengda Logistics Co. Ltd. Goods 1646632183.35 732332869.53
Bengang Electric Co. Ltd. Energy power 2966904.10
Bensteel Gaoyuan Industrial
Goods
Development Co. Ltd. 611.32
Bensteel Group Finance Co. Ltd. Energy power 6024.27
Bengang Group Co. Ltd. Energy power 101729.51 54228.93
Benxi North Steel Pipe Co. Ltd. Energy power 8456.61
Benxi Northern Iron Industry Co.Goods
Ltd. 11065842.59 341033255.96
Benxi Beiying Iron and Steel
Goods
(Group) Co. Ltd. 3951328.22 7805748.05
Benxi Beiying Iron and Steel
Raw materials and spare parts
(Group) Co. Ltd. 84897746.67 404510783.18
Benxi Beiying Iron and Steel
Energy power
(Group) Co. Ltd. 33632066.23 36045489.04
Benxi Dongfeng Lake Steel
Goods
Resources Utilization Co. Ltd. 14111556.08 11652917.70
Benxi Dongfeng Lake Steel
Energy power
Resources Utilization Co. Ltd. 2482745.43 3170242.42
Benxi Iron and Steel (Group)
Real Estate Development Co. Energy power 40312.15
Ltd.Benxi Iron and Steel (Group)
Energy power
Information Automation Co. Ltd. 78150.86
Benxi Iron and Steel (Group)
Real Estate Development Co. Energy power 60649.99
Ltd.Benxi Iron and Steel (Group)
Engineering Construction Energy power 1208.43
Supervision Co. Ltd.Benxi Iron and Steel (Group)
Electromechanical Installation Energy power 272525.36
Engineering Co. Ltd.Benxi Iron and Steel (Group)
Machinery Manufacturing Co. Goods 116745.28 10523900.28
Ltd.Benxi Iron and Steel (Group)
Machinery Manufacturing Co. Energy power 6405245.79 10883794.65
Ltd.Benxi Iron and Steel (Group)
Construction Advanced Energy power 527.01
Decoration Co. Ltd.Benxi Iron and Steel (Group)
Energy power
Construction Co. Ltd. 3330406.11 7783309.92
Benxi Iron and Steel (Group)
Mine Construction Engineering Energy power 425543.04
Co. Ltd.Benxi Iron and Steel (Group)
Mining Liaoyang Jiajiabao Iron Goods 4753.02
Mine Co. Ltd.
189Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Benxi Iron and Steel (Group)
Mining Liaoyang Jiajiabao Iron Energy power 54895941.41
Mine Co. Ltd.Benxi Iron and Steel (Group)
Mining Yanjiagou Limestone Energy power 2017672.71
Mine Co. Ltd.Benxi Iron and Steel (Group)
Goods
Mining Co. Ltd. 2357654.90 1298986.47
Benxi Iron and Steel (Group)
Raw materials and spare parts
Mining Co. Ltd. 35299728.81 67380113.36
Freight income 391007.89 4717137.94
Benxi Iron and Steel (Group)
Energy power
Mining Co. Ltd. 373480762.43 368746319.95
Benxi Iron and Steel (Group)
Road and Bridge Construction Goods 4695.28
Engineering Co. Ltd.Benxi Iron and Steel (Group)
Thermal Power Development Raw materials and spare parts 20195062.17 13425740.25
Co. Ltd.Benxi Iron and Steel (Group)
Thermal Power Development Energy power 14367856.89 17198224.54
Co. Ltd.Benxi Iron and Steel (Group)
Energy power
Equipment Engineering Co. Ltd. 650778.47
Benxi Iron and Steel (Group)
Energy power
Industrial Development Co. Ltd. 1490023.36 1312651.56
Benxi Iron and Steel (Group)
Energy power
Information Automation Co. Ltd. 118042.75
Benxi Iron and Steel (Group)
Energy power
Construction Co. Ltd. 508442.14
Benxi Iron and Steel (Group)
Goods
Metallurgical Slag Co. Ltd. 49114278.31 81209016.00
Benxi Iron and Steel (Group)
Raw materials and spare parts
Metallurgical Slag Co. Ltd. 1606.35 6434506.40
Benxi Iron and Steel (Group)
Energy power
Metallurgical Slag Co. Ltd. 3203925.07 2923049.91
Benxi Steel and Iron (Group) Co.Raw materials and spare parts
Ltd. 479091.24 2815485.28
Benxi Steel and Iron (Group) Co.Energy power
Ltd. 1769725.68 1830219.24
Benxi Well Surfacing
Energy power
Manufacturing Co. Ltd. 17115.96 23434.19
Benxi New Business
Goods
Development Co. Ltd. 2330.66
Benxi New Business
Energy power
Development Co. Ltd. 24362.71 56559.67
Dalian Borolle Steel Pipe Co.Goods
Ltd. 7978875.12 10411580.55
Freight income 3396.23
Delin Lugang Supply Chain Goods 162901409.17
190Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Service Co. Ltd.Guangzhou Angang Steel
Goods
Processing Co. Ltd. 10131627.29
Liaoning Hengtai Heavy
Goods
Machinery Co. Ltd. 8451.93
Liaoning Hengtai Heavy
Energy power
Machinery Co. Ltd. 130.66 59737.59
Liaoning Hengtong Metallurgical
Equipment Manufacturing Co. Goods 16460796.56 16247225.07
Ltd.Liaoning Hengtong Metallurgical
Equipment Manufacturing Co. Raw materials and spare parts 2432735.65
Ltd.Liaoning Slag Powder Co. Ltd. Goods 30084672.83
Liaoning Tianyu Fire Engineering
Energy power
Co. Ltd. 27076.31
Pangang Group Jiangyou Great
Goods
Wall Special Steel Co. Ltd. 1542012.35
Panzhong Yihong Metal Products
Goods
(Chongqing) Co. Ltd. 8131733.60
Suzhou Bengang Industrial Co.Goods
Ltd. 1706801.34
Tianjin Angang Steel Processing
Goods
and Distribution Co. Ltd. 539449.69
Tianjin Ansteel International
Goods
North Trading Co. Ltd. 249512844.48
Changchun FAW Angang Steel
Processing and Distribution Co. Goods 99910.50 9458338.35
Ltd.
(2) Situation of related party lease
The Company as lessor:
Unit: yuan
Lease income recognized in Lease income recognized in
Lessee name Types of leased assets
the current period the previous period
Bengang Tendering Co. Ltd. Plant and ancillary equipment 250917.43
191Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
The Company as lessee:
Unit: yuan
Simplified treatment of
rental expenses for short- Variable lease payments not
term leases and leases of included in the measurement Rent paid Interest expense on lease of the lease liability (If liability assumed Increased right-of-use assets
Lessor name Types of low-value assets (If leased assets applicable) applicable)
Current Previous Current Previous Current Previous Current Previous Current Previous
period period period period period period period period period period
7669068.17
square
meters of
Benxi Steel land use
and Iron rights
(Group) Co. 42920.00 27627809.26 27625616.70 19750096.20 19500054.00
Ltd. square
meters of
land use
rights
Benxi Steel 2300 Hot
and Iron rolling mill
(Group) Co. production 8049080.53 8049080.53 3736932.14 3870344.33
Ltd. line related real estate
Benxi 1780 Hot
Beiying Iron rolling mill
and Steel production 7557730.91 6198949.54 2877975.14 2980721.72
(Group) Co. line related
Ltd. real estate
Land use
Bengang right
Group Co. 728282.30 4972711.54 4972711.54 1315378.20 1224959.39
Ltd. square
meters
Description of related party leases:
1) According to the “Land Use Right Leasing Contract” and subsequent supplementary agreements signed between the Company and Bengang Steel (Group)on
April 7 1997 December 30 2005 and subsequent the Company leases land from Benxi Steel (Group) with a monthly rent of 0.594 yuan per square meter. The
leased land is 7669068.17 square meters and the annual rent is RMB 54665.10 thousand yuan.
192Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
2) On August 14 2019 the Company signed the “House Lease Agreement” with Benxi Steel (Group) and Beiying Iron and Steel Company and leased the houses
and auxiliary facilities occupied by the 2300 hot rolling mill production line and the 1780 hot rolling mill production line. The lease term of the houses and ancillary
facilities is until December 31 2038.
3) On July 15 2019 the Company signed “Land Lease Agreement” with Bengang Group and Bengang Steel (Group) respectively leased and used a total of 8
pieces of land from Bengang Group and Bengang Group Company with leased areas of 42920.00 square meters and 728282.30 square meters. The lease term is 20
years the rental price is RMB 1.138 yuan per square meter per month.
193Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(3) Other related transactions
1) The main contents of the centralized fund management arrangement that the Company participates in and
implements are as follows:
In April 2021 after negotiation with Benxi Iron and Steel Group Finance Co. Ltd. (hereinafter referred to as
Bengang Finance Company) the Company signed the “Financial Service Agreement” with Bengang Finance
Company to agree on the terms of the financial business and the upper limit of the relevant transaction amount
between the Company and its subsidiaries and Bengang Finance Company. The agreement stipulates that in the
next twelve months the maximum daily deposit balance of the company and its holding subsidiaries will be
RMB 11 billion yuan the maximum loan and other credit business will be RMB 8 billion yuan and the
maximum credit line will be RMB 8 billion yuan.In December 2021 after negotiating with Ansteel Group Finance Co. Ltd. (hereinafter referred to as Ansteel
Finance Company) the “Financial Service Agreement (2022-2024)” was signed in order to agree on the
relevant financial business terms and the upper limit of the relevant transaction amount between the Company
and its subsidiaries and Ansteel Finance Company in 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 in Ansteel
Finance Company is RMB 4.5 billion yuan and the maximum credit limit for loans bills and other forms is
RMB 5 billion yuan. Ansteel Finance Company provides the Company with a maximum entrusted loan of RMB
2 billion yuan.
2) Funds collected by the Company to the Group
Funds that the Company does not collect into the account of the parent company of the group but directly
deposits into the finance company
Balance as at 30 June 2023 Balance as at 1 January 2023
Project name Bad debt Bad debt Book balance Book balance
provision provision
Monetary funds (deposited in Ansteel Group Finance
Co. Ltd.) 2408325571.25 1074918531.75
Total
2408325571.251074918531.75
Including: Funds with restricted withdrawals due to
centralized management of funds
3) Funds borrowed by the company from the parent company or member units of the group
Project name Balance as at 30 June 2023 Balance as at 1 January 2023
Other payables 12014973.55 85617500.00
Total 12014973.55 85617500.00
194Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
The subsidiary Dalian Benruitong Automotive Material Technology Co. Ltd. borrowed RMB 75000000.00
from Benxi Steel and Iron (Group) Co. Ltd. as of June 30 2023 the Company has not yet paid interest of
RMB 12014973.55.
6. Receivables and Payable from Related Parties
(1) Receivables from related parties
Unit: yuan
Balance as at 30 June 2023 Balance as at 1 January 2023
Item Related parties
Book balance Bad debt provision Book balance Bad debt provision
Benxi Iron and Steel
(Group) Machinery
Notes receivable
Manufacturing Co. 294500.00
Ltd.Benxi Iron and Steel
Notes receivable (Group) Construction 940100.00
Co. Ltd.Benxi Beiying Iron
Notes receivable and Steel (Group) 3100000.00
Co. Ltd.Benxi Iron and Steel
Notes receivable (Group) Mining Co. 5518976.33
Ltd.Ansteel Roll Co.Notes receivable
Ltd. 200000.00
Ansteel Heavy
Notes receivable
Machinery Co. Ltd. 189621.75
Pangang Group
Notes receivable Xichang Steel and 30000000.00
Vanadium Co. Ltd.Pangang Group
Notes receivable Panzhihua Steel 5000000.00
Vanadium Co. Ltd.Accounts receivable North Hengda
financing Logistics Co. Ltd. 1370000.00
Accounts receivable Benxi Beiying Iron
financing and Steel (Group) 1170132.15
Co. Ltd.Accounts receivable Benxi Iron and Steel
financing (Group) Machinery
Manufacturing Co. 2108116.44
Ltd.Accounts receivable Benxi Iron and Steel
financing (Group) Construction 330000.00
Co. Ltd.Accounts receivable Benxi Steel and Iron
financing (Group) Co. Ltd. 755842.13
195Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Accounts receivable Dalian Borolle Steel
financing Pipe Co. Ltd. 200000.00
Accounts receivable Liaoning Hengtong
financing Metallurgical
Equipment 1200000.00
Manufacturing Co.Ltd.Accounts receivable Benxi Iron and Steel
financing (Group) Mining Co. 500000.00
Ltd.Angang Steel
Processing and
Accounts receivable Distribution (Dalian) 19636110.01 196361.10
Co. Ltd.Angang Steel
Processing and
Accounts receivable Distribution 1759216.34 17592.16 4477814.06 44778.14
(Zhengzhou) Co.Ltd.Angang Steel
Accounts receivable Distribution (Hefei) 1575359.32 15753.59 248775.35 2487.75
Co. Ltd.Angang Steel
Accounts receivable Distribution (Wuhan) 9609762.44 96097.62 8113115.19 81131.15
Co. Ltd.Accounts receivable Ansteel Co. Ltd. 30314005.82 303140.06
Ansteel Green
Accounts receivable Resources 2218608.01 22186.08 4667550.15 46675.50
Technology Co. Ltd.Ansteel Energy
Accounts receivable Technology Co. Ltd. 742072.08 7420.72
Bensteel Gaoyuan
Industrial
Accounts receivable Development Co. 648.00
Ltd.Bengang Group
International
Accounts receivable Economic and Trade 640621130.96 6406211.31 663311074.79 6633110.75
Co. Ltd.Bengang Group Co.Accounts receivable Ltd. 17036.30
Benxi Northern Iron
Accounts receivable Industry Co. Ltd. 3655505.09 36555.05
Benxi Beiying Iron
Accounts receivable and Steel (Group) 1157124.62 11571.25
Co. Ltd.Benxi Iron and Steel
(Group) Real Estate
Accounts receivable Development Co. 808.72 8.09
Ltd.
196Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Benxi Iron and Steel
(Group) Mine
Accounts receivable Construction 5099269.05 50992.69
Engineering Co.Ltd.Benxi Iron and Steel
(Group) Mining
Accounts receivable Yanjiagou Limestone 777713.41 7777.13
Mine Co. Ltd.Benxi Iron and Steel
Accounts receivable (Group) Mining Co. 44914278.63 449142.79
Ltd.Benxi Iron and Steel
(Group) Road and
Accounts receivable Bridge Construction 1772553.54 17725.54
Engineering Co.Ltd.Benxi Iron and Steel
(Group) Thermal
Accounts receivable Power Development 17373796.70 173737.97 840398.67 8403.99
Co. Ltd.Benxi Iron and Steel
(Group) Equipment
Accounts receivable Engineering Co. 1348327.24 13483.27
Ltd.Benxi Iron and Steel
Accounts receivable (Group) Information 23016.93 230.17
Automation Co. Ltd.Benxi Iron and Steel
(Group)
Accounts receivable Metallurgical Slag 7437743.49 74377.43
Co. Ltd.Benxi Weier
Surfacing
Accounts receivable Manufacturing Co. 188119.71 1881.20
Ltd.Benxi New Business
Accounts receivable Development Co. 50257.41 502.57
Ltd.Liaoning Hengtong
Metallurgical
Accounts receivable Equipment 1850333.39 18503.33 144307.22 1443.07
Manufacturing Co.Ltd.Bengang Electric
Accounts receivable Co. Ltd. 142269.51 1422.70
Prepayments Ansteel Co. Ltd. 489219.01
North Hengda
Prepayments
Logistics Co. Ltd. 121074.27
Prepayments Bengang Group 259916133.28 398341075.41
197Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
International
Economic and Trade
Co. Ltd.Benxi Beiying Iron
and Steel Group
Prepayments
Import and Export 894762.41
Co. Ltd.Benxi Iron and Steel
(Group) Machinery
Prepayments
Manufacturing Co. 91744319.35 49429296.57
Ltd.Benxi Steel and Iron
Prepayments
(Group) Co. Ltd. 46605722.67
Liaoning Hengtai
Prepayments Heavy Machinery 13619388.23
Co. Ltd.Benxi New Business
Prepayments Development Co. 2324912.22
Ltd.Other receivables Ansteel Co. Ltd. 45559.67 45559.67 421142.66 421142.66
North Hengda
Other receivables
Logistics Co. Ltd. 5000.00 50.00 65563.55
Bengang Group
International
Other receivables
Economic and Trade 6617.52 6617.52
Co. Ltd.Benxi Dongfeng
Other receivables Lake Steel Resources 3367748.44 33677.48
Utilization Co. Ltd.Benxi Iron and Steel
(Group) Machinery
Other receivables
Manufacturing Co.Ltd.Benxi Iron and Steel
Other receivables (Group) Construction 13028492.10 433910.93
Co. Ltd.Other receivables Benxi Steel and Iron 4532904.80 45329.05
(Group) Co. Ltd.Benxi New Business
Other receivables Development Co. 2280942.73 22809.43
Ltd.Benxi Iron and Steel
Other receivables (Group) Real Estate
Development Co. 1097290.88 991268.28
Ltd.Ansteel Heavy
Machinery Design
Other receivables
and Research 5176720.00 51767.20
Institute Co. Ltd.Benxi Iron and Steel
Other receivables (Group) Mining Co. 1193997.66 11939.98
Ltd.
198Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Benxi Iron and Steel
(Group) Equipment
Other receivables
Engineering Co. 4760949.45 47609.49
Ltd.Liaoning Hengtong
Metallurgical
Other receivables Equipment 4249698.29 42496.98
Manufacturing Co.Ltd.Bengang Electric
Other receivables
Co. Ltd. 36455.28 364.55
Ansteel Group
Other receivables Engineering 73908.67 739.09
Technology Co. Ltd.Ansteel Group
Other non-current Engineering 83071228.82
assets Technology Co. Ltd.Other non-current Ansteel Construction
assets Group Co. Ltd.
16254830.53132687.84
Ansteel Heavy
Other non-current Machinery Design
and Research 5176720.00 assets
Institute Co. Ltd.Benxi Iron and Steel
Other non-current (Group) Machinery
assets Manufacturing Co.
4176.00
Ltd.Benxi Iron and Steel
Other non-current (Group) Construction 33175372.34
assets Co. Ltd.Benxi Iron and Steel
(Group) Mine
Other non-current Construction 4193364.46
assets Engineering Co.Ltd.Benxi Iron and Steel
Other non-current (Group) Equipment
Engineering Co. 46123888.51 assets
Ltd.Benxi Iron and Steel
Other non-current (Group) Industrial
Development Co. 833139.38 assets
Ltd.Benxi Iron and Steel
Other non-current (Group) Information 7175371.14
assets Automation Co. Ltd.Liaoning Hengtai
Other non-current Heavy Machinery 225977.40
assets Co. Ltd.
199Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(2) Payables from related parties
Unit: yuan
Items Related parties Balance as at 30 June 2023 Balance as at 1 January 2023
Notes payable Ansteel Electric Co. Ltd. 494065.00
Notes payable Ansteel Rope Co. Ltd. 894924.67
Notes payable Ansteel Group (Anshan) Railway
Transportation Equipment 611999.91
Manufacturing Co. Ltd.Notes payable Ansteel Industrial Group
Metallurgical Machinery Co. 5098946.77 572213.92
Ltd.Notes payable Angang Shuangsheng (Anshan)
Fan Co. Ltd. 168370.00
Notes payable Ansteel Heavy Machinery Co.Ltd. 4102837.35 745501.68
Notes payable Anshan Iron and Steel
Metallurgical Furnace Materials 1011012.83
Technology Co. Ltd.Notes payable Bensteel Gaoyuan Industrial
Development Co. Ltd. 341547.50
Notes payable Benxi Aike Hydraulic Seal Co.Ltd. 4017931.36
Notes payable Benxi Beiying Iron and Steel
(Group) Co. Ltd. 3544400000.00 659999999.00
Notes payable Benxi Dongfeng Lake Steel
Resources Utilization Co. Ltd. 28021980.30
Notes payable Benxi Iron and Steel (Group)
International Trade Tengda Co. 201007087.52
Ltd.Notes payable Benxi Iron and Steel (Group)
Electromechanical Installation 4034726.24
Engineering Co. Ltd.Notes payable Benxi Iron and Steel (Group)
Machinery Manufacturing Co. 55093250.74 41781569.75
Ltd.Notes payable Benxi Iron and Steel (Group)
Construction Co. Ltd. 352395.99 3789095.21
Notes payable Benxi Iron and Steel (Group)
Mine Construction Engineering 595773.93
Co. Ltd.Notes payable Benxi Iron and Steel (Group)
Mining Co. Ltd. 666877903.00 151930597.68
Notes payable Benxi Iron and Steel (Group)
Equipment Engineering Co. Ltd. 949553.06 1611555.04
Notes payable Benxi Iron and Steel (Group)
Industrial Development Co. Ltd. 24812439.34
Notes payable Benxi Iron and Steel (Group)
Industrial Development Co. Ltd. 1127635.91
Recycling Branch
200Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Notes payable Benxi Iron and Steel (Group)
Information Automation Co. Ltd. 163107.15 1150225.42
Notes payable Benxi Iron and Steel (Group)
Metallurgical Slag Co. Ltd. 19731837.68 10866603.68
Notes payable Benxi Steel and Iron (Group) Co.Ltd. 915300.00 361277.52
Notes payable Benxi Xihu Metallurgical Charge
Co. Ltd. 100964915.60
Notes payable Dalian Borolle Steel Pipe Co.Ltd. 472187.26
Notes payable Liaoning Hengtai Heavy
Machinery Co. Ltd. 6761265.63 2877574.99
Notes payable Liaoning Hengtong Metallurgical
Equipment Manufacturing Co. 80188977.92 34223234.99
Ltd.Notes payable Liaoning Hengyi Financial
Leasing Co. Ltd. 9104.14
Notes payable Liaoning Yitong Machinery
Manufacturing Co. Ltd. 11496157.32
Notes payable Bengang Group International
Economic and Trade Co. Ltd. 82782219.21
Notes payable Benxi Iron and Steel (Group)
Industrial Development Co. Ltd. 10191802.55
Notes payable Liaoning Vocational and
Technical College of Metallurgy 528854.07
Notes payable Bengang Electric Co. Ltd. 25016176.00
Notes payable Ansteel Group Mining Co. Ltd. 79210057.06
Notes payable Ansteel Technology Development
Co. Ltd. 39644.00
Notes payable Ansteel Heavy Machinery Design
and Research Institute Co. Ltd. 6827200.00
Notes payable North Hengda Logistics Co. Ltd. 11350.04
Notes payable Liaoning Hengyi Steel Trading
Co. Ltd. 8941086.81
Accounts payable Ansteel Electric Co. Ltd. 324789.48
Ansteel Scrap Resources
Accounts payable
(Anshan) Co. Ltd. 95508032.52 52203765.63
Angang Steel Processing and
Accounts payable Distribution (Changchun) Co. 81119.58
Ltd.Accounts payable Ansteel Rope Co. Ltd. 191578.40 894924.67
Ansteel Group (Anshan) Railway
Accounts payable Transportation Equipment 985360.00 577232.81
Manufacturing Co. Ltd.Ansteel Group International
Accounts payable
Economic and Trade Co. Ltd. 16733519.12
Ansteel Group Mining
Accounts payable
Gongchangling Co. Ltd. 117603581.10
Accounts payable Ansteel Group Mining Co. Ltd. 591193.88 591193.88
Accounts payable Ansteel Construction Group Co. 8527.00
201Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Ltd.Ansteel Technology Development
Accounts payable
Co. Ltd. 140000.00
Ansteel Industrial Group
Accounts payable (Anshan) Equipment Operation 2228028.59
and Maintenance Co. Ltd.Ansteel Industrial Group
Accounts payable Metallurgical Machinery Co. 3197220.37 2265928.00
Ltd.Angang Shuangsheng (Anshan)
Accounts payable
Fan Co. Ltd. 77970.00 168370.00
Ansteel Heavy Machinery Co.Accounts payable
Ltd. 3398533.80 2873047.05
Anshan Iron and Steel
Accounts payable Metallurgical Furnace Materials 1466444.82
Technology Co. Ltd.Accounts payable North Hengda Logistics Co. Ltd. 25435334.70
Bengang Stainless Steel Cold
Accounts payable
Rolling Dandong Co. Ltd. 102005.30
Bensteel Gaoyuan Industrial
Accounts payable
Development Co. Ltd. 1281746.64
Bengang Group International
Accounts payable
Economic and Trade Co. Ltd. 51306166.70
Accounts payable Bengang Group Co. Ltd. 4688315.28 50000.00
Benxi Aike Hydraulic Seal Co.Accounts payable
Ltd. 3207003.01
Benxi Northern Iron Industry Co.Accounts payable
Ltd. 149204699.40
Benxi Beiying Iron and Steel
Accounts payable
(Group) Co. Ltd. 315454182.86 131248293.37
Benxi Dongfeng Lake Steel
Accounts payable
Resources Utilization Co. Ltd. 18999688.27
Benxi Iron and Steel (Group)
Accounts payable Real Estate Development Co. 372520.06 372520.06
Ltd.Benxi Iron and Steel (Group)
Accounts payable International Trade Tengda Co. 65147129.15
Ltd.Benxi Iron and Steel (Group)
Accounts payable Machinery Manufacturing Co. 2636292.77 2874934.49
Ltd.Benxi Iron and Steel (Group)
Accounts payable Construction Advanced 397711.62
Decoration Co. Ltd.Benxi Iron and Steel (Group)
Accounts payable
Construction Co. Ltd. 407952.50 240928491.19
Benxi Iron and Steel (Group)
Accounts payable Mine Construction Engineering 5704240.75
Co. Ltd.Accounts payable Benxi Iron and Steel (Group) 18102215.16 45768605.27
202Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Mining Co. Ltd.Benxi Iron and Steel (Group)
Accounts payable Road and Bridge Construction 791935.13
Engineering Co. Ltd.Benxi Iron and Steel (Group)
Accounts payable Thermal Power Development 100889.78 413463.33
Co. Ltd.Benxi Iron and Steel (Group)
Accounts payable
Equipment Engineering Co. Ltd. 56006170.72 87111368.27
Benxi Iron and Steel (Group)
Accounts payable
Industrial Development Co. Ltd. 9175580.25 75043780.30
Benxi Iron and Steel (Group)
Accounts payable
Information Automation Co. Ltd. 13453191.94 88684293.06
Benxi Iron and Steel (Group)
Accounts payable
Metallurgical Slag Co. Ltd. 47009411.99 47468411.05
Benxi Steel and Iron (Group) Co.Accounts payable
Ltd. 39872070.78
Benxi Iron and Steel (Group)
Accounts payable Mining Liaoyang Maling Pellet 116207873.93
Co. Ltd.Benxi Meter & Control
Accounts payable Electronic Instrument Industry 28802.83
Co. Ltd.Benxi Xihu Metallurgical Charge
Accounts payable
Co. Ltd. 20313571.32
Benxi Well Surfacing
Accounts payable
Manufacturing Co. Ltd. 234112.13
Accounts payable Freight income 57637.09 18937.09
Dalian Borolle Steel Pipe Co.Accounts payable
Ltd. 450952.17
Delin Industrial Products Co.Accounts payable
Ltd. 34853190.84 9556739.82
Liaoning Hengtai Heavy
Accounts payable
Machinery Co. Ltd. 14627776.85
Liaoning Hengtong Metallurgical
Accounts payable Equipment Manufacturing Co. 15943904.64 30626084.39
Ltd.Liaoning Metallurgical
Accounts payable
Technician College 10107863.07
Liaoning Vocational and
Accounts payable
Technical College of Metallurgy 48048.00 513779.95
Liaoning Yitong Machinery
Accounts payable
Manufacturing Co. Ltd. 3037287.88
Tianjin Bengang Plate Processing
Accounts payable
and Distribution Co. Ltd. 223096.00
Accounts payable Bengang Electric Co. Ltd. 1893516.67
Benxi High-tech Drilling Tools
Accounts payable
Manufacturing Co. Ltd. 14400.16
Angang Steel Processing and
Contract liabilities
Distribution (Dalian) Co. Ltd. 26248.21 2468274.66
203Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Angang Steel Processing and
Contract liabilities Distribution (Changchun) Co. 433765.38 695012.13
Ltd.Angang Steel Distribution (Hefei)
Contract liabilities
Co. Ltd. 3122010.92 4731954.99
Contract liabilities Ansteel Co. Ltd. 930287.84
Ansteel Chemical Technology
Contract liabilities
Co. Ltd. 4381585.23 3631726.76
Ansteel Energy Technology Co.Contract liabilities
Ltd. 12048.13
Contract liabilities North Hengda Logistics Co. Ltd. 118994396.13 53109140.37
Benxi Dongfeng Lake Steel
Contract liabilities
Resources Utilization Co. Ltd. 1035901.39
Benxi Iron and Steel (Group)
Contract liabilities Mining Mineral Resources 90019.77
Development Co. Ltd.Benxi Iron and Steel (Group)
Contract liabilities Mining Liaoyang Jiajiabao Iron 40057730.41
Mine Co. Ltd.Benxi Iron and Steel (Group)
Contract liabilities
Industrial Development Co. Ltd. 357907.98 535124.96
Benxi Iron and Steel (Group)
Contract liabilities
Metallurgical Slag Co. Ltd. 1044047.73
Benxi Iron and Steel (Group)
Contract liabilities Mining Liaoyang Maling Pellet 2970163.60
Co. Ltd.Benxi Xihu Metallurgical Charge
Contract liabilities
Co. Ltd. 20000.00
Dalian Borolle Steel Pipe Co.Contract liabilities
Ltd. 1647687.00 1776832.88
Delin Lugang Supply Chain
Contract liabilities
Service Co. Ltd. 47447914.81 14902176.11
Guangzhou Angang Steel
Contract liabilities
Processing Co. Ltd. 1598818.30 644213.74
Liaoning Hengtong Metallurgical
Contract liabilities Equipment Manufacturing Co. 40540.25
Ltd.Liaoning Vocational and
Contract liabilities
Technical College of Metallurgy 0.01
Pangang Group Jiangyou Great
Contract liabilities
Wall Special Steel Co. Ltd. 776933.91
Tianjin Angang Steel Processing
Contract liabilities
and Distribution Co. Ltd. 95477.46
Tianjin Ansteel International
Contract liabilities
North Trading Co. Ltd. 54050485.38 32000000.00
Changchun FAW Angang Steel
Contract liabilities Processing and Distribution Co. 132535.72 69561.39
Ltd.Zhejiang Jingrui Steel Processing
Contract liabilities
Co. Ltd. 80484269.96
204Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Wuhan Yuanhong Trading Co.Contract liabilities
Ltd. 4736783.67
Ansteel Scrap Resources
Other payables
(Anshan) Co. Ltd. 1000000.00 1000000.00
Ansteel Group Automation Co.Other payables
Ltd. 29869230.00 3565330.00
Ansteel Construction Group Co.Other payables
Ltd. 607805.64 5389177.00
Other payables Ansteel Metal Structure Co. Ltd. 10000.00 10000.00
Ansteel Technology Development
Other payables
Co. Ltd. 345269.90
Ansteel Industrial Group
Other payables (Anshan) Equipment Operation 4101254.08
and Maintenance Co. Ltd.Bensteel Gaoyuan Industrial
Other payables
Development Co. Ltd. 2280175.76
Bengang Group International
Other payables
Economic and Trade Co. Ltd. 2841874.23 11894493.16
Other payables Bengang Group Co. Ltd. 903375.93 7716476.47
Benxi Aike Hydraulic Seal Co.Other payables
Ltd. 10000.00
Benxi Beiying Iron and Steel
Other payables
(Group) Co. Ltd. 20777431.47
Benxi Dongfeng Lake Steel
Other payables
Resources Utilization Co. Ltd. 210000.00
Benxi Iron and Steel (Group)
Other payables Real Estate Development Co. 510910.37 510910.37
Ltd.Benxi Iron and Steel (Group)
Other payables Engineering Construction 1413282.10 1523543.12
Supervision Co. Ltd.Benxi Iron and Steel (Group)
Other payables International Trade Tengda Co. 65212.55
Ltd.Benxi Iron and Steel (Group)
Other payables Machinery Manufacturing Co. 1681991.53
Ltd.Benxi Iron and Steel (Group)
Other payables
Inspection and Testing Co. Ltd. 190140.00
Benxi Iron and Steel (Group)
Other payables Construction Advanced 2386190.08
Decoration Co. Ltd.Benxi Iron and Steel (Group)
Other payables
Construction Co. Ltd. 183898256.54 53547549.48
Benxi Iron and Steel (Group)
Other payables Mine Construction Engineering 23651293.09
Co. Ltd.Benxi Iron and Steel (Group)
Other payables Road and Bridge Construction 10619579.34
Engineering Co. Ltd.
205Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Benxi Iron and Steel (Group)
Other payables Thermal Power Development 846078.80 2129446.86
Co. Ltd.Benxi Iron and Steel (Group)
Other payables
Equipment Engineering Co. Ltd. 155059385.61 1089595.17
Benxi Iron and Steel (Group)
Other payables
Industrial Development Co. Ltd. 3782747.75 1259239.61
Benxi Iron and Steel (Group)
Other payables
Information Automation Co. Ltd. 82094205.42 2881047.50
Benxi Steel and Iron (Group) Co.Other payables
Ltd. 19339486.49 81104935.20
Benxi Xihu Metallurgical Charge
Other payables
Co. Ltd. 100000.00
Benxi New Business
Other payables
Development Co. Ltd. 23157491.13 33755860.72
Dalian Borolle Steel Pipe Co.Other payables
Ltd. 20000.00 20000.00
Liaoning Hengtai Heavy
Other payables
Machinery Co. Ltd. 4996287.37 22000196.88
Liaoning Hengtong Metallurgical
Other payables Equipment Manufacturing Co. 10000.00 3366743.50
Ltd.Liaoning Metallurgical
Other payables
Technician College 388880.00 427188.00
Liaoning Vocational and
Other payables
Technical College of Metallurgy 353630.00 6401530.88
Liaoning Yitong Machinery
Other payables
Manufacturing Co. Ltd. 15545.00
Other payables Bengang Electric Co. Ltd. 9353903.06
Other payables Ansteel Electric Co. Ltd. 523642.00
Other payables North Hengda Logistics Co. Ltd. 4384330.48
Benxi Iron and Steel (Group)
Other payables
Mining Co. Ltd. 543412.47
Ansteel Group Engineering
Other payables
Technology Co. Ltd. 23401702.63
XIII. Commitments and Contingencies
1. Important Commitments
Significant commitments at the balance sheet date
Important leasing contracts that have been signed and are being performed and their financial impact
(1) According to the “Land Use Right Leasing Contract” and subsequent supplementary agreements signed
between the Company and Bengang Group Co. Ltd. on April 7 1997 December 30 2005 and later the
Company leases land from Bengang Group Co. Ltd. at RMB 0.594 per square meter per month. The leased
land area is 7669068.17 square meters and the annual rent is RMB 54.6651 million.
206Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(2) On August 14 2019 the Company signed the “House Lease Agreement” with Benxi Steel (Group) and
Beiying Steel respectively leasing the houses and auxiliary facilities occupied by 2300 and 1780 hot rolling
mill production lines and the lease term ends on December 31 2038. The rental fee is based on the depreciation
of the original rent value and the national additional tax plus reasonable profit negotiation. The estimated
annual rent is not more than RMB 20 million yuan and RMB 18 million yuan respectively. The rental fee is
settled and paid monthly. This related party transaction has been reviewed and approved at the fourth meeting
of the eighth Board of Directors of the Company.
(3) On July 15 2019 the Company signed "Land Lease Agreement" with Bengang Group and Benxi Steel
(Group) respectively and leased and used a total of 8 pieces of land of the two companies. The lease areas are
42920.00 square meters and 728282.30 square meters respectively with a lease term of 20 years and a rental
price of RMB 1.138 yuan per square meter per month. After the agreement comes into effect considering the
national law and policy adjustments every five years both parties should determine whether the rent needs to be
adjusted according to the pricing basis stipulated in Article 2 of this agreement. This related party transaction
has been reviewed and approved at the third meeting of the eighth Board of Directors of the Company.XIV. Events after the Balance Sheet Date
1. Description of Other Events after the Balance Sheet Date
Bengang Steel Plates Co. Ltd. intends to exchange assets with Benxi Steel and Iron (Group) Co. Ltd.(hereinafter referred to as "Benxi Steel") the assets to be acquired by the Company are 100% equity of Benxi
Iron and Steel (Group) Mining Co. Ltd. The assets to be acquired by the Company are all assets and liabilities
of the listed company except retained assets and liabilities the difference between the assets to be purchased
and the assets to be sold out shall be made up by one party to the other in cash (hereinafter referred to as "the
transaction").As of the disclosure date of this announcement this transaction plan needs further demonstration
communication and negotiation and the scope of the underlying assets of the transaction transaction price and
other factors have not been finalized. After the relevant matters are determined the Company will reconvene
the Board of Directors for review and approval.XV. Other Important Matters
1. Others
As of June 30 2023 the Company’s controlling shareholder Benxi Steel and Iron (Group) Co. Ltd. holds
2409628094 shares of the company among them 360000000 shares are pledged and 108326179 shares are
restricted and frozen.XVI. Notes to the Main Items of the Financial Statements of the Parent company
1. Accounts Receivable
207Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(1) Accounts receivable presented by category
Unit: yuan
Balance as at 30 June 2023 Balance as at 1 January 2023
Types Book balance Bad debt provision Book balance Bad debt provision
Amount Percentage Amount Percentage Book value Amount Percentage Amount Percentage Book value
Bad debt
provisions
made on an 61930883.00 .7.46% 61930883.00 100.00% 48196244.68 4.41% 48196244.68 100.00%
individual
basis
Including:
Bad debt
provisions
768793549.0092.54%75155930.409.78%693637618.601045652547.1395.59%114616750.5510.96%931035796.58
made on the
combination
Including:
Aging
portfolio 284497106.87 34.25% 75155930.40 26.42% 209341176.47 886147539.07 81.01% 114616750.55 12.93% 771530788.52
Combination
of related
parties
within the 484296442.13 58.30% 484296442.13 159505008.06 14.58% 159505008.06
scope of
consolidation
Total 830724432.00 100.00% 137086813.40 16.50% 693637618.60 1093848791.81 100.00% 162812995.23 14.88% 931035796.58
208Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Bad debt provisions made on an individual basis:
Unit: yuan
Balance as at 30 June 2023
Name of debtor Book balance Bad debt provision Bad debts ratio (%) Reason for provision
Benxi Nanfenxinhe
Discontinued no return
Metallurgical Charge 48196244.68 48196244.68 100.00% expected
Co. Ltd.Benxi Iron and Steel Bankruptcy and
(Group) Third reorganization of the
Construction 10613567.47 10613567.47 100.00% enterprise is expected
Engineering Co. Ltd. to be irrecoverable
Benxi Iron and Steel Bankruptcy and
(Group) First reorganization of the
Construction 3121070.85 3121070.85 100.00% enterprise is expected
Engineering Co. Ltd. to be irrecoverable
Total 61930883.00 61930883.00
Bad debt provisions made on the combination:96669699.85
Unit: yuan
Balance as at 30 June 2023
Items
Accounts receivable Bad debt provision Bad debts ratio (%)
Within 1 year 693021659.55 924570849.45 1.00%
1 to 2 years 865863.89 14717227.92 10.00%
2 to 3 years 2404917.15 1087625.52 20.00%
More than 3 years 134431991.41 153473088.92 100.00%
Total 830724432.00 1093848791.81
Notes for determining what this combination is based on:
If the bad debt provision for accounts receivable is accrued according to the general model of expected credit losses please refer to
the disclosure method of other receivables to disclose the relevant information of bad debt provision:
□Applicable □Not applicable
Disclosure by aging
Unit: yuan
Aging Balance as at 30 June 2023
Within 1 year (including 1 year) 693021659.55
1 to 2 years 865863.89
2 to 3 years 2404917.15
More than 3 years 134431991.41
3 to 4 years 134431991.41
Total 830724432.00
209Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(2) Classified by bad debt provision method
Provision for bad debts in this period:
Unit: yuan
Amount changed during the period
Balance as at 1 Reversed or Balance as at 1 Type
January 2023 Accrued Written-off Other changes January 2023
recovered
Provision for
bad debts of
accounts 162812995.23 2764651.30 1447761.08 158600582.85
receivable
Total 162812995.23 2764651.30 1447761.08 158600582.85
(3) Actual written-off of accounts receivable in the current period
Unit: yuan
Items Amount of written-off
Actual written-off of accounts receivable 1447761.08
Important write-off of accounts receivable:
Unit: yuan
Whether the
Name of debtor Nature of accounts Amount of Reason of written-
Written-off payment is
receivable written-off off procedures generated by a performed related party
transaction
Jining Forging
Center Sales of products 461229.33 Deregistered
General Manager
Office Meeting No
Xuzhou
Jinshanqiao
Development Zone Sales of products 200265.48 Revoked General Manager No
Yongan Metal Office Meeting
Material Co. Ltd.Shanghai Benxi
Iron and Steel
Industry and Trade Sales of products 193625.29 Deregistered
General Manager
Office Meeting No
Company
China Ordnance
Materials
Northeast Sales of products 155616.74 Revoked General Manager Company Fushun Office Meeting No
Technology and
Trade Center
Tonghua Grain and
Oil Machinery Sales of products 141139.39 Deregistered General Manager
Factory Office Meeting
No
Benxi Steel Yantai Sales of products
Marketing Co. 138378.96 Deregistered General Manager
Ltd. Office Meeting
No
Shandong Sales of products
Zhucheng
Industrial Supply 87085.43 Revoked General Manager No
and Marketing Office Meeting
Corporation
210Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
Tieling Jinlong Sales of products Deregistered
Petroleum Pipeline General Manager
Machinery Product 24608.99 Office Meeting No
Distribution Office
Shenzhen Sales of products Deregistered
Zhongtianda
Materials Industry 20441.96 General Manager Office Meeting No and Trade Co.Ltd.Shunde Sales of products
Xinqiangsheng 12635.20 Deregistered General Manager
Mold Co. Ltd. Office Meeting
No
Benxi Steel Sales of products
Material 7167.87 Revoked General Manager
Distribution Office Office Meeting
No
Guangdong
Zhaoqing
Township
Enterprise Sales of products 5566.44 Deregistered General Manager No
Building Materials Office Meeting
and Minerals
Company
Total 1447761.08
(4) The top five units with the ending balance of accounts receivable collected by the debtor
Unit: yuan
% of the total closing balance Bad debt provision as at 30
Name of debtor Balance as at 30 June 2023 of accounts receivable June 2023
The first 238750179.09 11.39%
The second 187716823.84 8.96% 1877168.24
The third 186041227.34 8.88% 1860412.27
The fourth 149938272.79 7.15%
The fifth 144284531.52 6.88% 1442845.32
Total 906731034.58 43.26%
2. Other Receivables
Unit: yuan
Items Balance as at 30 June 2023 Balance as at 1 January 2023
Other receivables 166743093.49 150724545.56
Total 166743093.49 150724545.56
(1) Other receivables
1) Classification by nature of payment
Unit: yuan
Nature Book balance as at 30 June 2023 Book balance as at 31 December 2022
Temporary payment 231895133.40 205620987.47
Others 33356356.95 8506439.44
Total 265251490.35 214127426.91
211Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
2) Situation of bad debt provisions
Unit: yuan
The first stage The second stage The third stage
Expected credit losses Expected credit loss
Expected credit losses
Bad debt provision over the entire duration over the entire duration over the next 12 Total
(no credit impairment (credit impairment has
months
occurred) occurred)
Balance as at 31
December 2022 801060.44 1353672.38 61248148.53 63402881.35
Balance as at 31
December 2022 is in
the current period
-- Transfer to the
second stage -154164.80 154164.80
-- Transfer to the third
stage -925201.28 925201.28
Provision for this
period 304421.93 164005.63 35445003.54 35913431.10
Derecognition in this
period 807915.59 807915.59
Balance as at 30 June
2023951317.57746641.5396810437.7698508396.86
Changes in the book balance of loss provisions with significant changes in the current period
□Applicable □Not applicable
Disclosure by aging
Unit: yuan
Aging Balance as at 30 June 2023
Within 1 year (including 1 year) 95131756.52
1 to 2 years 70536371.78
2 to 3 years 2772924.29
More than 3 years 96810437.76
3 to 4 years 96810437.76
Total 265251490.35
212Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
3) The provision for bad debts accrued reversed or recovered in the current period
Provision for bad debts in this period:
Unit: yuan
Amount changed during the period
Balance as at 1 Balance as at
Type
January 2023 Reversed or Transferred or Accrued Other changes 30 June 2023
recovered written-off
Provision for
bad debts of
63402881.3535913431.10807915.5998508396.86
other
receivables
Total 63402881.35 35913431.10 807915.59 98508396.86
4) Other receivables actually written off in the current period
Unit: yuan
Items Amount written off
Other receivables actually written off 807915.59
Important write-off of other receivables:
Unit: yuan
Whether the
Written-off payment is
Nature of other Amount of Reason of written-
Name of debtor procedures generated by a
receivables written-off off
performed related party
transaction
Beijing Bensteel
General Manager
Material Sales Sales of products 807915.59 Revoked No Office Meeting
Center
Total 807915.59
213Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
5) The top five units with the ending balance of other receivables collected by the debtor
Unit: yuan
% of the total Provision for bad
Nature of other Balance as at 30
Name of debtor Aging closing balance of debts as at 30 June
receivables June 2023
other receivables 2023
Temporary
The first 12212650.80 1 年以内 payment 4.60% 122126.51
Temporary
The second 1 至 2 年
payment 11348676.33 4.28%
Temporary
The third
payment 4010871.64 1 年以内 1.51% 40108.72
Temporary
The fourth
payment 4609686.93
1年以内1.74%46096.87
Temporary
The fifth
payment 3367748.44
1年以内1.27%33677.48
Total 35549634.14 13.40% 242009.58
3. Long-term Equity Investments
Unit: yuan
Balance as at 30 June 2023 Balance as at 1 January 2023
Items Provision for Provision for Book balance Book value Book balance Book value
impairment impairment
Investment in
subsidiaries 2222281590.24 2222281590.24 2222281590.24 2222281590.24
Investment in
associates and 47556655.03 47556655.03 47996314.61 47996314.61
joint ventures
Total 2269838245.27 2269838245.27 2270277904.85 2270277904.85
214Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(1) Investment in subsidiaries
Unit: yuan
Balance as at 1 Changes in current period Balance of provision
Investees January 2023(Book Balance as at 30 June Additional Provision for 2023(Book value) for impairment as at value) investment Reduced investment impairment Others 30 June 2023
Guangzhou Bensteel
Trading Co. Ltd. 200000000.00 200000000.00
Shanghai Bensteel
Metallurgical 229936718.57 229936718.57
Technology Co. Ltd.Dalian Benruitong
Automotive Material 65000000.00 65000000.00
Technology Co. Ltd.Bengang Puxiang
Cool Rolling Steel 1019781571.10 1019781571.10
Sheet Co. Ltd.Changchun Bensteel
Sales Co. Ltd. 28144875.36 28144875.36
Yantai Bengang Iron
and Steel Sales Co. 219100329.41 219100329.41
Ltd.Tianjin Bengang Iron
and Steel Trading 230318095.80 230318095.80
Co. Ltd.Benxi Bensteel Sales
Co. Ltd. 30000000.00 30000000.00
Shenyang Bensteel
Metallurgical 200000000.00 200000000.00
Technology Co. Ltd.Total 2222281590.24 2222281590.24
215Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
(2) Investment in associates and joint ventures
Unit: yuan
Changes in current period
Investment Balance of
Balance as at 1 Gains and Other Declaration provision for
Other Provision Balance as at 30 January
Investees
2023(Book Additional Reduced
losses comprehensive of cash June 2023(Book impairment as equity for
value) investment investment recognized income dividends or
Others value) at 30 June
changes impairment
under the adjustment profit 2023
equity method
I. Joint ventures
II. Associates
Bensteel Baojin
(Shenyang)
Automotive New
47996314.61-439659.5847556655.03
Material
Technology Co.Ltd.Subtoal 47996314.61 -439659.58 47556655.03
Total 47996314.61 47556655.03
216Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
4. Operating Income and Operating Costs
Unit: yuan
Current period Previous period
Items Revenue Costs Revenue Costs
Principal business 29752956987.48 30143666528.21 33392817816.17 32060330971.40
Other business 598633897.79 582130402.92 2381220254.26 2344381961.67
Total 30351590885.27 30725796931.13 35774038070.43 34404712933.07
Revenue related information:
Unit: yuan
Contract classification 营业收入
Classified by business area 30351590885.27
Including:
Domestic 27268083739.08
Abroad 3083507146.19
Classified by the time of commodity transfer 30351590885.27
Including:
Recognized at the time of commodity transfer 30350227817.31
Recognized over a certain period of time 1363067.96
Total 30351590885.27
Information related to performance obligations:
None
Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period the amount of income corresponding to the performance obligations that
have been signed but not yet fulfilled or not fully fulfilled is 0.00 yuan.
5. Investment Income
Unit: yuan
Items Current period Previous period
Long-term equity investment income
measured by cost method 53139377.16
Long-term equity investment income
measured by equity method -439659.58
Investment income from disposal of
long-term equity investment 6059547.35
Investment income of financial assets
held-for-trading during the holding -2502067.50
period
Investment income from debt
restructuring 694683.35
Total -2247043.73 59198924.51
217Bengang Steel Plates Co. Ltd. 2023 Semi-Annual Report
XVII. Supplementary Information
1. Details of Non-recurring Profit and Loss
□Applicable □Not applicable
Unit: yuan
Items Amount Notes
Profit or loss from disposal of non-
current assets (including the reversal part
of the provision for asset impairment)
Government grants attributable to profit
and loss of current period (except such
government subsidy closely related to the
company's normal business operation
34571691.80
meeting the regulation of national policy
and enjoyed constantly in certain quota
or quantity according to a certain
standard)
Profit and loss from entrusting others to
-2796530.07
invest or manage assets
Debt restructuring profit and loss 694683.35
Other non-operating revenue and
-30054378.76
expenditure other than above items
Less: Impact of income tax 75725.75
Less: Impact of minority interests (net of
tax) 6025.40
Total 2333715.17 --
Specific circumstances of other profit and loss items that meet the definition of non-recurring profit and loss:
□Applicable □Not applicable
The Company does not have other specific circumstances of profit and loss items that meet the definition of non-recurring profit
and loss.Explanation on defining the non-recurring profit and loss items listed in the “Interpretive Announcement No. 1 on InformationDisclosure of Companies Offering Securities to the Public - Non-recurring Profit and Loss” as recurring profit and loss items
□Applicable □Not applicable
2. Return on Equity and Earnings Per Share
Weighted average Return on
Profit in the Reporting Period Earnings per share
Equity Basic EPS(yuan/share) Diluted EPS(yuan/share)
Net profit attributable to
ordinary shareholders -5.49% -0.2446 -0.1558
Net profit attributable to
ordinary shareholders after
deducting non-recurring profit -5.50% -0.2452 -0.1563
and loss
218
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