Bengang Steel Plates Co., Ltd. 2023 Annual Report
Bengang Steel Plates Co., Ltd.
Annual Report 2023
1
Bengang Steel Plates Co., Ltd. 2023 Annual Report
2023 Annual Report
SECTION I. IMPORTANT NOTICE, TABLE OF CONTENTS, AND DEFINITIONS
The Board of Directors, the Supervisory Committee and the Directors, members of the Supervisory
Committee and senior management of the Company guarantee that there are no misrepresentations or
misleading statements, or material omissions in this report, and individually and collectively accept full
responsibility for the authenticity, accuracy and integrity of the information contained in this report.
Li Yan, the person in charge of the Company, Zheng Zhengli, the person in charge of accounting work,
and Sun Yanbin, the person in charge of the accounting department (accounting officer in charge), have
pledged the authenticity, accuracy and integrity of the attached financial statements. All the members of
the Board of Directors attended the board meeting on which this report was examined.
The prospective statements contained in this annual report do not constitute any substantial
commitment to the investors. Investors should pay attention to the risks attached to investment decisions.
This report is prepared in both of Chinese and English. The Chinese version shall prevail when there are
any controversial statements in the two versions.
The Company has described the risks and countermeasures in detail in this report, please refer to
Section III. XI "Risks to the Company and countermeasures". China Securities Journal, Securities Times, the
website of Shenzhen Stock Exchange and Cninfo Website are the media selected by the Company for
information disclosure. All information of the Company shall be based on the information published in the
above designated media, and investors are advised to pay attention to the investment risks.
The Company plans not to pay cash dividends, not to send bonus shares, and not to increase its share
capital by transferring its public reserves.
2
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Table of Contents
SECTION I. IMPORTANT NOTICE, TABLE OF CONTENTS, AND DEFINITIONS .................................................................... 2
SECTION II. COMPANY PROFILE AND MAIN FINANCIAL INDEX ........................................................................................ 6
SECTION III. MANAGEMENT DISCUSSION AND ANALYSIS .......................................................................................... 11
Section IV. CORPORATE GOVERNANCE ....................................................................................................................... 45
Section V. Environmental and Social Responsibility ....................................................................................................... 70
Section VI Important Events ............................................................................................................................................ 82
Section VII. Status of Share Capital Changes and Shareholders ................................................................................... 119
Section VIII. Preferred shares ........................................................................................................................................ 130
Section IX. Bonds............................................................................................................................................................ 131
Section X. Financial Report ............................................................................................................................................ 131
3
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Reference File Directory
1. Financial statements containing the signatures and seals of the person in charge of the Company, the person in
charge of accounting work and the person in charge of the accounting institution;
2. The original audit report containing the seal of the accounting firm and the signature and seal of the certified
public accountant.
3. The original copies of all Company documents and announcements that have been publicly disclosed during the
reporting period;
4. Annual reports published in other securities markets.
4
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Definition
Interpretation items Refers to Interpretation contents
Bengang Steel Plates, Company, the
Refers to Bengang Steel Plates Co., Ltd.
Company, listed company
Ansteel Refers to Ansteel Group Co., Ltd.
Bengang Group Refers to Bengang Group Co., Ltd.
Benxi Iron & Steel, Bengang Company Refers to Benxi Iron & Steel (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 Sheet
Bengang Puxiang Refers to
Co., Ltd.
Ansteel Finance Company Refers to Ansteel Group Finance Co., Ltd.
Ansteel Refers to Ansteel Steel Company Limited
PAnsteel Group Vanadium & Titanium
Vanadium & Titanium Company Refers to
Resources Co., Ltd.
5
Bengang Steel Plates Co., Ltd. 2023 Annual Report
SECTION II. COMPANY PROFILE AND MAIN FINANCIAL INDEX
I. Company information
Bengang Steel Plates,
Stock abbreviation Stock code 000761, 200761
Bengang Steel Plates plate 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
BENGANG STEEL PLATES CO., LTD.
any)
Abbreviation of Company
BSP
name in English (if any)
Legal representative Li Yan
Registration address No.16, Renmin Road, Pingshan District, Benxi City, Liaoning Province
Postal code of registration
117000
address
Changes in the Company's
None
registered address history
Office address No.1-1, Steel Road, Pingshan District, Benxi City, Liaoning Province
Postal code of office address 117000
Company website None
E-mail zhengzhengli76@126.com
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 024-47827003 024-47828980
Fax 024-47827004 024-47827004
E-mail zhengzhengli76@126.com bgbc000761@126.com
III. Information disclosure and place for consulting
Website of the stock exchange where the Company discloses
http://www.SSE.cn
the annual report
Name and website of the media in which the Company discloses China Securities Journal, Securities Times, http ：
the annual report //www.cninfo.com.cn
Place for inquiry of the annual report Secretary Office of the Board, Bengang Steel Plates Co., Ltd.
6
Bengang Steel Plates Co., Ltd. 2023 Annual Report
IV. Change of business registration
Uniform social credit code 91210000242690243E
Changes of principal business
No change
activities since listing (if any)
On August 20th, 2021, Liaoning State-owned Asset Supervisory
and Management Committee, the former actual controller of
the Company, and Ansteel Group Co., Ltd. signed the
Agreement between Liaoning State-owned Asset Supervisory
and Management Committee and Ansteel Group Co., Ltd. on the
Free Transfer of Bengang Group Co., Ltd. State-owned Equity, in
Historical changes in controlling shareholders (if any) which Liaoning Provincial State-asset Administration
transferred 51% of its equity interest in Bengang Group Co., Ltd.
to Ansteel without compensation. On October 12th, 2021, the
change of business was completed and Ansteel Group Co., Ltd.
became the indirect controlling shareholder of the Company.
The direct controlling shareholder of the Company remains
unchanged as Benxi Iron & Steel (Group) Co., Ltd.
V. Other relevant information
Accounting firm engaged by the Company
Lixin Certified Public Accountants (Special General
Name of the accountants’ firm
Partnership)
Fourth Floor, No.61 Nanjing East Road, Huangpu District,
Address of the accountants’ firm
Shanghai
Name of signatory accountants Guo Shunxi, Nick Cheung and Fu Yangyi
Sponsor engaged by the Company to conduct sustained supervision during the reporting period
Applicable □Not applicable
Financial consultancy institution engaged by the Company to conduct sustained supervision during the reporting period
□Applicable Not applicable
VI. Main accounting data and financial index
Whether the Company is required to retroactively adjust or restate prior years' accounting data
□Yes No
Increase or decrease
FY2023 FY2022 compared with the FV2021
previous year
Operating income
57,814,969,351.65 62,616,621,627.60 -7.67% 77,912,144,981.46
(RMB)
Net profit attributable
to shareholders of the -1,742,574,163.92 -1,232,976,557.37 -41.33% 2,500,582,902.58
listed company (RMB)
Net profit after non-
recurring gain or loss
attributable to -2,067,775,288.69 -1,416,415,028.51 -45.99% 2,517,758,656.14
shareholders of the
listed company (RMB)
Net cash flow from 4,329,351,258.30 1,276,362,965.56 239.19% 413,473,454.04
7
Bengang Steel Plates Co., Ltd. 2023 Annual Report
operating activities
(RMB)
Basic earnings per
-0.4240 -0.3000 -41.33% 0.600
share (RMB/share)
Diluted earnings per
-0.4240 -0.3000 -41.33% 0.496
share (RMB/share)
Weighted average
-9.73% -5.68% -4.05% 11.88%
return on net assets
Increase or decrease
FY2023 FY2022 compared with the FV2021
previous year
Total assets (RMB) 46,253,250,872.50 44,459,650,119.11 4.03% 55,147,123,275.30
Net assets attributable
to shareholders of 17,009,969,496.07 18,789,151,216.62 -9.47% 22,500,969,014.30
listed companies (RMB)
The lower of the company’s net profit before and after the deduction of non-recurring gains and losses in the most recent three fiscal
years is negative, and the audit report of the most recent year shows that the company’s ability to continue operations is uncertain.
□Yes No
The lower of the net profit before and after deducting non-recurring gains and losses is negative
Yes □No
Item FY2023 FY2022 Note
Operating income (RMB) 57,814,969,351.65 62,616,621,627.60 Gross operating income
Selling raw materials and
Deduction amount of
1,187,913,732.14 2,143,539,898.31 waste products, providing
operating income (RMB)
services, etc
Selling raw materials and
Amount after deduction of
56,627,055,619.51 60,473,081,729.29 waste products, providing
operating income（RMB）
services, etc
VII. Differences in accounting data under domestic and foreign accounting standards
1. Differences between net profit and net assets disclosed in financial reports prepared under IFRS and Chinese
accounting standards.
□Applicable Not applicable
There are no differences between net profit and net assets disclosed in financial reports prepared under IFRS and Chinese accounting
standards during the reporting period.
2. Differences in net profit and net assets between financial reports disclosed simultaneously in accordance
with foreign accounting standards and in accordance with Chinese accounting standards
□Applicable Not applicable
There are no differences between the net profit and net assets of the Company in the financial reports disclosed in accordance with
foreign accounting standards and in accordance with Chinese accounting standards in the reporting period.
VIII. Main financial index by quarter
Unit: RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 15,784,242,237.23 14,783,166,967.80 12,935,206,488.37 14,312,353,658.25
8
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Net profit attributable
to shareholders of the 47,524,016.34 -1,052,469,640.02 -240,873,918.19 -496,754,622.05
listed company
Net profit after non-
recurring gain or loss
attributable to 70,931,650.60 -1,078,210,989.45 -327,965,565.23 -732,530,384.61
shareholders of the
listed company
Net cash flow from
2,833,913,987.48 1,828,723,294.33 190,084,866.44 -523,370,889.95
operating activities
Whether the above financial indicators or the sum of such indicators are significantly different from the relevant financial indicators
in the disclosed quarterly and semi-annual reports of the Company
□Yes No
IX. Non-recurring gain or loss items and amounts
Applicable □Not applicable
Unit: RMB
Item FY2023 amount FY2022 amount FY2021 amount Description
Gain or loss on disposal
of non-current assets
(including the
298,940,955.41 3,648,546.62 -60,100,706.71
offsetting portion of
the provision for asset
impairment)
Government subsidies
included in current
profit or loss (except
government subsidies
that are closely related
to the Company's
normal business
operations, in 79,554,896.45 72,300,830.48 66,345,976.64
accordance with
national policies and
continuously enjoyed
in accordance with
certain standards and
in fixed or quantitative
amounts)
Gains or losses from
entrusting others to
-37,205,991.34
invest or manage
assets
Gains and losses from
-6,626,340.44 2,879,850.07 2,436,869.33
debt restructuring
Gains or losses from
changes in fair value of
financial assets and
liabilities held for
5,179,346.89 1,274,270.98
trading, and
investment income
from the disposal of
financial assets and
9
Bengang Steel Plates Co., Ltd. 2023 Annual Report
liabilities for trading
and available-for-sale
financial assets, except
for effective hedging
activities related to the
Company's normal
business operations
Non-operating income
and expenses other
-51,663,946.71 13,507,766.62 5,176,371.41
than the items
mentioned above
Other profit or loss
items that meet the
92,174,927.78
definition of non-
recurring gain or loss
Less: Income tax effect 327,320.42 1,956,581.46 -5,969,319.73
Effect of minority
-143,533.59 391,139.95 -202,407.38
interests (after tax)
Total 325,201,124.77 183,438,471.14 -17,175,753.56 --
Details of other profit and loss items that meet the definition of non-recurring profit or loss:
□Applicable Not applicable
The company does not have other specific conditions of profit and loss items that meet the definition of non-recurring profit and loss.
Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement on Information Disclosure of
Companies Offering Securities to the Public No.1-Non-recurring Profit and Loss as recurring profit and loss items
□Applicable Not applicable
The company does not define the non-recurring profit and loss items listed in Explanatory Announcement No.1 on Information
Disclosure of Companies Offering Securities to the Public-Non-recurring Profit and Loss as recurring profit and loss items.
10
Bengang Steel Plates Co., Ltd. 2023 Annual Report
SECTION III. MANAGEMENT DISCUSSION AND ANALYSIS
I. Industry situation of the company during the reporting period
The Company belongs to the steel industry, which is an important basic industry of China's national economy, an important support
for building a modern and powerful country, and an important area for achieving green and low-carbon development.
The global steel market was gloomy, the operating environment of steel industry was severe and the industry level has been
decreasing in 2023. The development trend is largely presented as “huge supply elasticity and slow demand recovery”. The main
force that engines steel production increase is that steel export increases and the steel demand of domestic manufacturing industry
while the main reason of decreasing consumption is the shrinking steel demand of construction industry. Although prices of imported
ore fell year on year, the decreasing extent of steel enterpises’ cost is actually lower than the decreasing amplitude of steel prices.
Whole profit of the industry has decreased year on year and performance indicators have been at a low level in recent years.
Under the co-effect of “two carbon”target (carbon peaking and carbon neutrality) and economy condition at home and abroad, Steel
industry in China has been under an in-depth Adjustment of supply and demand structure. The year of 2024 is the crucial stage of
“the 14th Five Year Plan”as well as the key stage when the Long-Range Objectives through the Year 2035 is being shaped and in the
making. The expected changes in the supply side of steel industry are not obvious and it is expected that there will be mild recovery
on the demand side. “Strong board and long-term weakness (of the stock price)”structure will continue. Meanwhile, under the
blueprint of “two carbon”, the domestic steel industry will face a bunch of challenges and opportunities such as “industrial
greenization and premiumisation, procedure intelligentization ”. Steel enterprises nationwide will have to face the co-existence of
three periods, namely “platform period for supply, adjusting period for demand and differentiation period for profit”. Faced with
these challenges, the iron and steel industry will face necessary adjustments and countermeasures. Enterprises need to pay more
attention to improving technological innovation, reducing production costs, strengthening the development of domestic and foreign
markets, and seeking new growth points. They should focus on strengthening and deepening the basic business disk on the basis of
scale, consolidate the core competitiveness of products with technological innovation, and accelerate the transformation to high-
end, green, efficient and intelligent.
II. Main business of the Company during the reporting period
1. Main business, main products and their uses
During the reporting period, the company’s main businesses 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. The
introduction of state-of-the-art equipment and technology to implement equipment upgrades for the main iron and steel industry
and have built a high-quality steel base, formed more than 60 varieties, more than 7,500 specifications of product series, the
proportion of high value-added and high-tech products reached more than 80%. The leading products for automotive surface panels,
home appliance panels, petroleum pipeline steel, container panels, shipboard, etc. are widely used in the fields of automobiles, home
appliances, petrochemicals, aerospace, machinery manufacturing, energy and transportation, building decoration and metal
products, and are exported to more than 60 countries and regions.
2. 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 the modes of long-association procurement, direct procurement, open and invited bidding,
inquiry and comparison, competitive negotiation and negotiation procurement, which are mainly represented by Benxi Iron & Steel
11
Bengang Steel Plates Co., Ltd. 2023 Annual Report
(Group) International Economic and Trading Co., Ltd.
Sales model: The Company's sales are divided into domestic sales and foreign sales, domestic sales are mainly based on agreement
account sales, sales channels are based on direct supply, circulation and engineering, organizing contract orders in advance by month,
and organizing required production according to contract orders. According to different regions, different channels, different industry
characteristics, the implementation of futures mode, one plant and one policy, index pricing and other price policy sales method;
export sales mainly use the Benxi Iron & Steel (Group) International Economic and Trading Co., Ltd. over the years in the international
trade accumulated strong marketing network, the Company's products exported by its agent, and pay Benxi Iron & Steel (Group)
International Economic and Trading Co., Ltd. agency fees.
3. Main performance drivers
The Company focused on the construction of world-class enterprises, fully implemented the "7531" strategic objectives of Ansteel
Group and the "1357" work guidelines of Benxi Iron and Steel Group, and after deepening the reform and refining the market, it
further promoted lean management, extreme efficiency improvement, benchmarking and cost reduction, core brand building and
talent team building, which condensed the powerful energy of all cadres and employees to "lead the new Benxi Iron and Steel and
support the new Ansteel". Establish an operation and control model based on comprehensive budget and planned value
management, taking benefit as the center, sales as the leader, finance as the core, benchmarking as the starting point, and vigorously
promoting the "consistent system" management of automobile panels as the guide. Strengthen strategic determination, strengthen
the linkage of "sales, research and production", vigorously promote the "consistent system" management of the whole process
quality, take users as the center, meet the needs of users, strengthen the construction of industrial chain ecosystem, build the
competitiveness of automobile steel brand and enhance the core functions of enterprises. Firmly establish the sense of responsibility
of "seeking benefits from reform and promoting revitalization through reform", adhere to innovation drive, take reform and
innovation as the driving force, create the "source" of original technology, and improve new productivity. Adhere to the strategy of
"developing enterprises with talents", take lean management as the starting point, increase the intensity of selecting and educating
people, promote the "four-three transformation" mode of organizational performance, and deepen the development of enterprises
with talent empowerment. Unswervingly take the road of green and low-carbon transformation, promote industrial digitalization,
gather transformation power, accelerate the pace of building "A high-quality plate base with international competitiveness led by
automobile plates and a domestic first-class excellent special steel base", and achieve hard-won achievements in production,
operation and enterprise reform.
During the reporting period, there was no change in the Company's main business or business model.
III. Analysis on core competitiveness
The Company adheres to the innovation-driven and "quality + service" development model, with the strategic goal of building an
internationally competitive high-quality plate base, a domestic first-class special steel base and a comprehensive service provider,
and exerts a strategic leading role, focusing on improving quality and efficiency, In terms of product upgrades, technological
innovation, green and intelligent manufacturing, we will innovate management ideas, enhance the core competitiveness of
enterprises, and promote enterprises to achieve high-quality, green and intelligent development.
1. Manufacturing capacities. Adhere to the benefit as the center, strengthen the strategic determination of automobile steel to lead
the development, and adhere to the four-wheel drive of "reform + lean" and "digital + technology" according to the principle of
"market first, R&D follow-up and on-site follow-up". Seize the market opportunity, coordinate the production line with the market
efficiently, continuously optimize the product structure, and continuously improve the profitability of the company. Strengthen
benchmarking, reduce costs and continuously improve. Deepen the special work of benchmarking and cost reduction, externally look
for indicators, methods and differences, internally find problems, potentials and measures, pay attention to all employees,
12
Bengang Steel Plates Co., Ltd. 2023 Annual Report
foundation and implementation, and strive to outperform the manufacturing cost and processing cost of major products.
2. Equipment transformation and upgrading. In 2023, the company issued a fixed asset investment plan of 1.871 billion yuan. We
have implemented a new round of large-scale technological transformation and ultra-low emission transformation, represented by
key projects such as the environmental protection transformation of the first coal storage plant, the environmental protection
transformation of the second coal storage plant, the integrated iron front control of the plate iron making plant, the integrated
energy control of the plate iron making plant, the main transformation project of the cold rolling plant, the new three-time dust
removal system of the 1#2#3#7 converter of the steel plant, and the desulfurization waste liquid of the plate iron making plant. At
present, the environmental protection transformation projects of the first coal storage plant and the second coal storage plant have
been put into operation.
3. New product development capabilities. Successfully developed 41 brands of new products, of which 36 brands were sold in the
market. 2000mm wide and thin tank steel, which is the first in China. Develop galvanized high-strength QP980 + Z, which will add
another member to the third generation automobile steel family of the company. Special steel products represented by 18CrNiMo7-
6 fill the blank of Benxi Steel. The hot-dip galvanized dual-phase steel DH780 with reinforced formability was developed, and the
layout of hot-dip galvanized dual-phase steel and derivative products was enlarged. BGJTM800L for 800MPa load-bearing beam is
developed to realize batch supply. IS2062 E250A/BR, high-quality coated pipe steel for India, to achieve exclusive domestic supply.
The first product was inoculated, and the laboratory research of Delta-TRIP 780 and the industrial trial production of BG650LW rim
steel with high strength and high fatigue performance were completed.
4. Technological innovation ability. We will strengthen school-enterprise cooperation, build a " postgraduate joint training
demonstration base " with Northeastern University, innovate a new model of talent training, promote the construction of " digital "
R & D and " information intelligence " platform, and provide strong support for the intelligent decision-making of enterprise scientific
research work. It has signed 21 foreign technical cooperation projects with Dalian University of Technology and Northeast University
to promote the transplantation of mature scientific and technological achievements of colleges and universities to enterprises. In
terms of standards : presided over the completion of 2 national standards, participated in the completion of 1 industry standard, and
participated in the completion of 3 group standards. Drafting 94 enterprise standards. In terms of intellectual property rights : 353
patents were accepted, including 6 overseas patents ; the number of authorized patents is 184, of which 82 are invention patents ;
won the honorary title of " National Intellectual Property Demonstration Enterprise. " In terms of scientific and technological
achievements, it has won 14 awards of scientific and technological progress at or above the provincial and ministerial levels. Among
them, ' the key technology development and industrialization of the third generation of ultra-high-volume low-temperature and high-
pressure pipeline steel ' won the special prize of metallurgical science and technology progress, ' the development of intensive ultra-
high-strength galvanized dual-phase steel series products based on pre-oxidation technology ' won the first prize of scientific and
technological progress in Liaoning Province, ' the key technology and industrialization application of laser welding of ultra-high-
strength thin steel plate for automobile ' won the second prize of mechanical industry science and technology, and ' high-quality hot-
dip galvanized dual-phase steel ' won the first prize of China Automobile Lightweight Design Competition. The ' Hot Stamping Steel
Serialization Product Development ' project was included in the advanced material field of the ' Science and Technology Innovation
China ' series list.
5. Green development ability. According to the national and Liaoning provincial policy requirements for the iron and steel industry
and local ultra-low emissions, the Company has the courage to assume social responsibility, relying on professional planning and
research institutions, the preparation of environmental protection improvement plan and annual implementation plan, through clean
production, three waste management, environmental protection management, "AAA" level scenic garden factory construction and
other all-round green improvement, to achieve environmental quality community. Strive to achieve ultra-low rank by the end of 2025,
and build the company into an "ecological steel mill" that develops in harmony with the city.
6. Intelligent manufacturing capabilities. In 2023, intelligent transformation of plate iron front centralized control, plate energy
13
Bengang Steel Plates Co., Ltd. 2023 Annual Report
centralized control, plate intelligent material yard construction and so on has been carried out. Keep up with the pace of enterprise
development in the era of big data and achieve high-quality development. Guided by the core indicators of the 14 th Five-Year Plan,
we will promote the construction of " four modernizations " indicators such as automation, informatization, digitization, and
intelligence. The automatic control rate of the production line in the key areas of the production unit will increase by 30 %, and the
construction coverage of the production execution system will reach 100 %. The replacement rate of 3D posts, the completion rate
of the four modernizations production line and the four chemical plants will increase by 30 %.
IV. Management discussion and analysis
1. General
In 2023, the company achieved a comprehensive breakthrough in production record for the first time, and the pig iron cost
outperformed the industry. The annual pig iron output was 10.412 million tons, an increase of 409,200 tons year-on-year, breaking
the historical record; The output of crude steel was 11.281 million tons, an increase of 729,000 tons year-on-year, breaking the
historical record; The output of hot rolled plates was 10.42 million tons, an increase of 657,400 tons year-on-year, breaking the
historical record; The output of cold rolled plate is 5.381 million tons, and the output of special steel is 511,600 tons. Realized
operating income of 57.8 billion yuan. Looking back at the whole year's work, it is mainly reflected in the following aspects:
I. Create new performance of production and operation with the goal of extreme efficiency. The Company has built a full-process
pull-type production mode, with the ultimate efficiency as the goal, make up for the shortcomings, and comprehensively build a clear
interface and clear process operation control platform. The output of iron, steel and materials has reached new highs. Each
production line has repeatedly refreshed Nissan and monthly production records throughout the year. The annual cumulative power
generation was 3.342 billion kWh, a record high.
II.Reduce costs and create efficiency as the goal, deepen the system potential. Explore and construct a new model of ' whole
process, whole level and whole industry chain ' benchmarking management. Operating cash flow is effectively guaranteed, adhere
to the preferential policies of taxes and fees, and benefit the dividends of enterprises. Set up energy development branch, with the
help of waste heat, residual pressure power generation, heating, enjoy tax rebates ; actively strive for government special funds.
Promote the compliance disposal of idle assets. Relying on the data collection advantages of the financial integration accounting
system, we will promote the synergy of tax policy efficiency and cost expenditure control.
III.Serve customers as the center, brand building has made new progress. Fully implement the quality of Benxi Iron and Steel,
service ' seven iron law ', in order to improve the brand market share as the goal, enhance the user experience as the criterion, to
serve customers as the center, to meet the needs of users, brand building has made new progress ; establish a regular visit mechanism
for the main engine factory, and the production and sales of automobile steel have reached a record high. The sales volume of
automobile steel in the whole year has reached 2.6839 million tons. Focusing on the supply guarantee of the main engine factory,
strengthening the supporting role of logistics, shortening the water transportation time of automobile steel, and creating the best
level in history. The contract delivery rate of the OEM increased by 13 % year-on-year.
IV.Reform and innovation as the driving force, continue to enhance the competitiveness of enterprises. We will fully implement
measures such as professional integration, separation of main and auxiliary, and performance of all staff positions, with reform and
innovation as the driving force to release our inherent potential. Adhere to the cultivation of innovative culture, won eight awards at
the above level of Ansteel, and achieved new breakthroughs in the award level of scientific and technological innovation
achievements. Adhering to the guidance of scientific and technological innovation, the third generation of galvanized high strength
steel QP980 + Z, hot-dip galvanized reinforced formability dual phase steel DH780 and wind power gear steel 18CrNiMo7-6 filled the
gap of this steel. BG650LW steel for high strength and high fatigue rim was successfully trial-produced in France, which realized the
first production of wide and thin tank steel in China. In the whole year, 26 new products were successfully developed and 24 were
sold in the market. Benxi Iron and Steel Group Co., Ltd.successfully entered the list of " double hundred enterprises " in the reform
14
Bengang Steel Plates Co., Ltd. 2023 Annual Report
of state-owned enterprises by the State-owned Assets Supervision and Administration Commission of the State Council in 2023,
successfully selected as " quality benchmark enterprises in Liaoning Province, " obtained the certification of high-tech enterprises,
and the benchmark demonstration effect continued to increase. Benxi Steel Plates Co., Ltd. won the honor of " National Intellectual
Property Demonstration Enterprise " and achieved " zero breakthrough. "
V. Taking the construction of world-class enterprises as the priority, new breakthroughs have been made in the high-quality
development of enterprises. Establish a lean management promotion model, take project implementation as the carrier, take the
construction of world-class enterprises as the priority, gather the transformation power, take benchmark cultivation as the starting
point, instant reward as the guarantee, and benefit improvement as the goal, encourage full participation and independent
improvement, promote the model innovation of lean education, and achieve new breakthroughs in high-quality development.
Unswervingly take the road of green and low-carbon transformation, 32 ultra-low emission projects are put into operation on
schedule. Promote the construction of ' garden-style ' factories, win the national ' AAA ' tourist attractions in advance and open the
operation. Strengthen the management and control of key energy-saving projects, and the comprehensive energy consumption per
ton of steel hit a record low. Promote the life cycle assessment of automotive steel products, promote industrial digitization, energy
centralized control, three cold centralized control, iron front centralized control and intelligent material yard put into operation,
create efficiency optimization.
2. Income and cost
(1) Breakdown of operating income
Unit: RMB
FY2023 FY2022 Change over last
Amount Proportion Amount Proportion year
Total operating
57,814,969,351.65 100% 62,616,621,627.60 100% -7.67%
income
By Industries
Industry 57,814,969,351.65 100.00% 62,616,621,627.60 100.00% -7.67%
By products
Steel plate 55,846,805,275.80 96.60% 59,395,642,984.38 94.86% 1.74%
Others 1,968,164,075.85 3.40% 3,220,978,643.22 5.14% -1.74%
By regions
Northeast 20,691,986,568.44 35.79% 23,156,472,367.43 36.98% -10.64%
North China 2,376,195,240.35 4.11% 2,727,436,320.34 4.36% -12.88%
East China 24,871,999,815.08 43.02% 28,747,114,756.97 45.91% -13.48%
Northwest 52,033,472.42 0.09% 49,874,139.13 0.08% 4.33%
Southwest 2,341,506,258.74 4.05% 2,903,291,017.72 4.64% -19.35%
Central south 7,481,247,996.62 12.94% 5,032,433,026.01 8.04% 48.66%
By sales model
Sales in domestic
50,333,721,355.03 87.06% 57,584,188,601.59 91.96% -12.59%
market
Sales in export
7,481,247,996.62 12.94% 5,032,433,026.01 8.04% 48.66%
market
(2) Industry, product and regions accounting for the Company’s operating income or profit over 10%
Applicable □Not applicable
Unit: RMB
Operating Operating costs Gross margin
Operating
Operating costs Gross margin income change change over changes over
income
over last year last year last year
15
Bengang Steel Plates Co., Ltd. 2023 Annual Report
By industries
57,814,969,351 58,326,286,006
Industry -0.88% -7.67% -6.32% -1.45%
.65 .53
By products
55,846,805,275 56,022,475,742
Steel plate -0.31% -5.97% -5.22% -0.79%
.80 .99
1,968,164,075. 2,303,810,263.
Others -17.05% -38.90% -26.83% -19.30%
85 54
By regions
20,691,986,568 20,951,715,682
Northeast -1.26% -10.64% -9.03% -1.80%
.44 .17
2,376,195,240. 2,394,016,704.
North China -0.75% -12.88% -11.74% -1.29%
35 65
24,871,999,815 25,115,496,693
East China -0.98% -13.48% -12.16% -1.52%
.08 .27
Northwest 52,033,472.42 52,465,350.24 -0.83% 4.33% 5.69% -1.30%
2,341,506,258. 2,361,268,571.
Southwest -0.84% -19.35% -18.07% -1.58%
74 56
7,481,247,996. 7,451,323,004.
Central south 0.40% 48.66% 49.25% -0.39%
62 63
By sales model
Sales in
50,333,721,355 57,266,707,304
domestic -13.77% -12.59% 0.00% -14.32%
.03 .14
market
Sales in export 7,481,247,996. 4,992,627,550.
33.26% 48.66% 0.00% 32.47%
market 62 58
Operating data of recent one year according to adjusted statistics caliber at the year-end in the case that the Company's main
business statistics caliber has changed during the reporting period
□Applicable Not applicable
(3) Whether the Company’s physical sales income exceeded service income
Yes □No
Industry Change over last
Item Unit FY2023 FY2022
classification year
Sales ton 13,969,225.21 14,022,304.90 -0.38%
Steel rolling
Production ton 13,906,372.52 13,892,713.60 0.10%
processing
Inventory ton 409,472.24 472,324.93 -13.31%
industry
The main reasons that the relevant data changed by more than 30%
□Applicable Not applicable
(4) Performance of significant sales and purchase contracts signed up in this reporting period
□Applicable Not applicable
(5) Breakdown of operating cost
Industry classification
Industry classification
Unit: RMB
Industry FY2023 FY2022 Change over
Item
classification Amount Proportion Amount Proportion last year
Steel rolling Raw material 29,581,611,202 50.72% 32,656,346,258 52.45% -1.73%
16
Bengang Steel Plates Co., Ltd. 2023 Annual Report
processing .59 .98
industry
Steel rolling
Supplementary 2,302,602,411. 2,471,539,945.
processing 3.95% 3.97% -0.02%
materials 33 40
industry
Steel rolling
Spare parts and
processing 634,076,720.43 1.09% 664,918,489.57 1.07% 0.02%
tools
industry
Steel rolling
19,077,855,313 19,516,799,781
processing Fuel 32.71% 31.35% 1.36%
.66 .80
industry
Steel rolling
2,474,454,980. 2,654,880,861.
processing Energy 4.24% 4.26% -0.02%
42 12
industry
Steel rolling
Salary and 2,156,978,343. 1,890,550,009.
processing 3.70% 3.04% 0.66%
benefits 86 31
industry
Steel rolling
1,628,409,626. 1,941,797,897.
processing Depreciation 2.79% 3.12% -0.33%
63 36
industry
Steel rolling
processing Others 470,297,407.61 0.81% 462,501,611.18 0.74% 0.07%
industry
Steel rolling
58,326,286,006 62,259,334,854
processing Total 100.00% 100.00% 0.00%
.53 .72
industry
Introduction:
None
(6) Whether changes occurred in consolidation scope in the reporting period
□Yes No
(7) Relevant information on significant changes or adjustments of the business, product or service in the reporting period
□Applicable Not applicable
(8) Information of main customers and main suppliers
Information about the Company’s main customers
Total sales amount of the top five customers (RMB) 9,998,697,001.58
Total sales amount of the top five customers accounted for the
17.29%
proportion of total annual sales
The proportion of the total sales of the related parties in the top
6.80%
five customers
Information on the top 5 customers
No. Name Amount (RMB) Proportion
North Hengda Logistics Co.,
1 3,931,414,139.80 6.80%
Ltd.
SINO-ORDINS (SHANGHAI)
2 1,991,253,986.40 3.44%
Co., Ltd.
Hailian Jinhui Technology Co.,
3 1,745,490,675.75 3.02%
Ltd.
4 Ningbo AUX Trade Co., Ltd. 1,342,906,969.49 2.32%
17
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Shanghai Ouyeel Supply
5 987,631,230.14 1.71%
Chain Co., Ltd.
Total -- 9,998,697,001.58 17.29%
Other information about principal customers
□Applicable Not applicable
Information on the Company’s main suppliers
Total purchase amount of the top five suppliers (RMB) 24,171,827,486.11
Total purchase amount of the top five suppliers accounted for
41.44%
the proportion of total purchase
The proportion of the total purchase of the related parties in
30.32%
the top five suppliers
Information on the top 5 suppliers
No. Name Amount (RMB) Proportion
Benxi Beiying Steel & Iron
1 11,588,576,048.68 19.87%
(Group) Co., Ltd.
Benxi Steel & Iron (Group)
2 6,097,885,650.06 10.45%
Mining Co., Ltd.
Heilongjiang Dragon Coal
3 2,762,493,436.20 4.74%
Group Co., Ltd.
Liaoning Electric Power Co.,
4 Ltd. Benxi Electric Power 2,272,935,877.08 3.90%
Supply Company
Shanxi Coking Coal Group
5 1,449,936,474.09 2.49%
Co.,Ltd.
Total -- 24,171,827,486.11 41.44%
Other information about principal suppliers
□Applicable Not applicable
3. Expenses
Unit: RMB
Notes to significant
FY2023 FY2022 Change over last year
change
Selling and distribution
159,034,136.51 128,489,696.80 23.77%
expenses
General and
administrative 601,859,503.43 663,080,654.45 -9.23%
expenses
Affected by the
decrease in financial
Financial expenses 309,298,938.97 523,070,165.35 -40.87% expenses and
exchange gains during
the year
Research and Affected by the
development expenses increase in research
81,247,560.73 58,088,008.14 39.87%
and development
expenditure this year
4. Research and development input
Applicable □Not applicable
Main R&D project Project purpose Project progress Intended goal Expected impact on the
18
Bengang Steel Plates Co., Ltd. 2023 Annual Report
name future development of
the Company
(1) In view of the
systematic research on
the coal quality
characteristics and
In terms of the current
The researches show coking characteristics
development trend of
that with the increase of coking coal in Benxi
the iron and steel
of CaO and MgO Iron and Steel Co., Ltd.,
industry, the long
content in coal, the taking the basic
process smelting
catalytic effect of coke blended coal of Benxi
process will not be
solution loss reaction is Iron and Steel Co.,
replaced in a short
obvious, but the Ltd.as the raw material,
time. In order to
strength after reaction the coke reactivity CRI
achieve the goal of
shows a decreasing is increased by 1 ～ 3
carbon peak and On the basis of
trend. When the percentage points
carbon neutralization, ensuring that the coke
content of CaO is more under the condition
it is important to study has a certain CSR and
than 0.2 %, the CSR of that the CSR of coke
how to reduce the M40 strength. When
coke after reaction after reaction is
carbon reduction the coke CRI index is
decreases by 16 %. At basically the same as
technology of blast appropriately
Research on the same time, the that of coke prepared
furnace fuel ratio to increased, the blast
preparation technology microscopic strength by basic blended coal.
promote the low furnace can maintain a
of high strength and and structural strength When the CSR of the
carbonization and high high utilization
high reactivity coke for of coke were studied. prepared coke is 2
efficiency of blast coefficient, and at the
hydrogen-rich smelting ( 2 ) According to the percentage points
furnace iron making. same time achieve the
of blast furnace follow-up project lower than that of the
Therefore, it is of great purpose of carbon
research plan, it is base coke, the CRI of
significance for the reduction, which plays
proposed to the coke reactivity is
sustainable a positive role in the
appropriately add increased by 4 ～ 5
development of coal company 's realization
binders to the coking percentage points.
industry and iron and of carbon emission
coal with CaO and MgO
steel industry to study targets.
to strengthen the (2) On the basis of
the method of using
coking experiment of ensuring that the cold
high reactivity and high
coke strength after strength M40 and hot
strength coke to
reaction, so as to strength CSR of coke
partially replace
improve the coke are basically stable on
traditional coke and
reactivity and improve the basis of coke made
reduce the coke ratio
the coke strength after by the basic coal
by reducing the
reaction by adding blending institute, the
temperature of heat
binder reinforcement. need to reduce a
reserve area.
certain amount of CO2
emission by the
existing blast furnace
every year is met.
By studying the The slow cooling (1) The slow cooling A set of feasible and
requirements of experiments of cold process of hot rolled efficient slow cooling
different high strength rolled high strength ( pickling ) high process of hot rolled
steel varieties, steel PHS2000, TRIP780 strength steel coil coil is established to
Development and
specifications, uses and and DP780 at 700 ~ above500MPa was solve the key common
Application of Slow
ambient temperature 500 ° C for 20 ~ 240 established. problems such as
Cooling Process for
for slow cooling minutes have been uneven through coil
High Strength Steel Coil
process, combined completed, and the (2) The slow cooling performance, poor
Based on 2300 Hot
with the construction corresponding process of hot rolled shape and large
Rolling Mill
of slow cooling performance change raw material coils of deviation of cold rolling
equipment of 2300 hot rules have been cold rolled high force caused by too fast
rolling mill, a set of obtained. The strength steel cooling rate of hot
feasible and efficient industrial test scheme represented by rolled coil, and to break
slow cooling process is being drafted in PHS1500, PHS2000, through the bottleneck
19
Bengang Steel Plates Co., Ltd. 2023 Annual Report
for hot rolled steel coils combination with the DP980 and QP980 was restricting the quality
is established. project progress. established. improvement of high
strength steel in Benxi
Iron and Steel Co., Ltd.
The fundamental
The 440 MPa, 540
theoretical research is
MPa, 580 MPa grade
completed, and the 780 MPa steel
high reaming hot
first production trial is products are widely
rolled pickling plate
completed in used in automotive
has been successfully
combination with safety structural parts.
developed, and the
similar contracts. The The mechanical With high strength and
batch stable supply has
mechanical properties properties fulfill: high flanging forming
Research and been realized. The
basically meet the 600MPa ≤ ReL ( or performance, 780 MPa
development of 780 research and
requirements of Rp0.2 ) ≤ 760MPa, products have the
MPa grade hot rolled development of 780
relevant standards. At 780MPa ≤ Rm ≤ processing and
pickling steel with high MPa grade high
present, the market 900MPa, A80 % ≥ forming of more parts.
hole expansion reaming steel is helpful
promotion is being 12 %, reaming rate ≥ There is a lot of
to narrow the gap with
carried out, and the 50 %. demand in the market,
advanced enterprises,
production trial is which can improve the
improve product
planned to be carried profitability and social
serialization and
out in combination influence of
improve the
with the special enterprises.
profitability of
contract review FB780
enterprises.
contract.
Through the
reasonable addition of The successful
alloying elements and development of BG650
the improvement of The laboratory LW hot rolled wheel
the control precision of research and industrial steel can not only
chemical composition trial production of The yield strength of create considerable
Research on fatigue
in steelmaking, the BG650 LW have been BG650LW product is ≥ economic benefits for
performance control
technology of completed, the batch 500MPa, the tensile Benxi Steel, but also
technology and
controlled rolling and stable supply has been strength is ≥ 650MPa provide conditions for
mechanism of 650MPa
controlled cooling is realized, and the and the elongation is ≥ the upgrading of wheel
high strength and high
redesigned to make relevant certification 15 %. Fatigue products, energy
fatigue performance
the thin material has been completed. performance ≥ 1.5 saving and
wheel rim steel
obtain the required At present, the million times. consumption
high strength cumulative supply is reduction, national
performance, so as to about 500 tons. safety production and
achieve the purpose of environmental
reducing the weight of protection.
wheel rim.
Information on research and development personnel by the Company
FY2023 FY2022 Change over last year
Number of research and
1,456 1,601 -9.06%
development staff
Proportion of number of
research and development 10.12% 10.83% -0.71%
staff
Educational structure of research and development staff
Bachelor 1,090 1,158 -5.87%
Master's degree 152 164 -7.31%
Age composition of research and development staff
Under the age of 30 75 82 -8.53%
30 to 40 years old 452 471 -4.03%
Information on research and development input by the Company
20
Bengang Steel Plates Co., Ltd. 2023 Annual Report
FY2023 FY2022 Change over last year
Amount of research and
development investment 1,763,356,565.00 1,923,920,000.00 -8.35%
(RMB)
Proportion of research and
development investment to 3.05% 3.07% -0.02%
operating income
Amount of capitalized
research and development 0.00 0.00 0.00%
investment
Proportion of capitalized
research and development
investment accounted to total 0.00% 0.00% 0.00%
research and development
investment
Reasons for and effects of significant changes in the composition of the Company's R&D staff
□Applicable Not applicable
Reasons for the significant change in total R&D investment as a proportion of operating income compared to the previous year
□Applicable Not applicable
Reasons for the significant change in the capitalization rate of R&D investment and its reasonableness
□Applicable Not applicable
5. Cash flow
Unit: RMB
Item FY2023 FY2022 Change over last year
Subtotal of cash inflows from
55,274,413,040.41 51,680,631,749.58 6.95%
operating activities
Subtotal of cash outflows
50,945,061,782.11 50,404,268,784.02 1.07%
from operating activities
Net cash flows from operating
4,329,351,258.30 1,276,362,965.56 239.19%
activities
Subtotal of cash inflows from
87,797,599.66 145,128,645.47 -39.50%
investing activities
Subtotal of cash outflows
993,323,275.09 1,707,467,068.85 -41.82%
from investing activities
Net cash flows from investing
-905,525,675.43 -1,562,338,423.38 -38.58%
activities
Subtotal of cash inflows from
2,698,377,111.10 4,759,751,595.78 -43.31%
financing activities
Subtotal of cash outflows
6,267,561,866.24 9,497,398,695.88 -34.01%
from financing activities
Net cash flows from financing
-3,569,184,755.14 -4,737,647,100.10 -24.66%
activities
Net increase in cash and cash
-111,887,711.68 -5,002,436,380.28 -97.76%
equivalents
Illustrations of key factors of significant changes over the same period last year
Applicable □Not applicable
(1) Net cash flow from operating activities increased by 239.19% compared with the previous period, mainly due
to the increase in the proportion of cash remittances of sales refunds in the current period.
21
Bengang Steel Plates Co., Ltd. 2023 Annual Report
(2) The subtotal cash inflow from investing activities decreased by 39.5% compared with the previous period,
mainly due to the reduction of the income of the disposal sub-enterprises in the current period compared with
the previous period.
(3) The subtotal of cash outflow from investing activities decreased by 41.82% compared with the previous period,
which was mainly due to the decrease in the proportion of spot exchange of fixed assets purchased and built in
the current period.
(4) Net cash flow from investing activities decreased by 38.58% compared with the previous period, mainly due
to the reduction of the disposal of subsidiary enterprises ' income and the reduction of the proportion of fixed
assets in the current period compared with the previous period.
(5) The subtotal of cash inflow from financing activities decreased by 43.31% compared with the previous period,
mainly due to the decrease of borrowings in the current period.
(6) The subtotal of cash outflow from financing activities decreased by 34.01% compared with the previous period,
mainly due to the decrease in repayment of loans and interest on loans, and the decrease in restricted monetary
funds in the current period.
(7) Net increase in cash and cash equivalents increased by 70.71% compared with the previous period, mainly due
to the decrease in borrowings and dividend payment in the current period.
Illustrations of significant difference between cash flow from operating activities and net profit during the reporting period
□Applicable Not applicable
V. Analysis of non-core business
Applicable □Not applicable
Unit: RMB
Proportion of total Whether it is
Amount Reason for formation
profit sustainable or not
Investment income
from disposal of long-
Investment Income -2,827,424.32 0.18% No
term equity
investments
Due to the increase in
Asset impairment -35,339,403.25 2.24% the provision for No
inventory impairment
Due to the income
Non-operating income 43,395,135.36 -2.75% from disposal of non- No
current assets
Due to the disposal of
Non-operating
95,059,082.07 -6.03% assets in No
expenses
the current period
VI. Analysis of assets and liabilities
1. Significant change of assets components
Unit: RMB
Ending balance of 2023 Beginning balance of 2023
Notes to
Proportion in Proportion in Proportion
significant
Amount the total assets Amount the total assets change
change
(%) (%)
Cash and cash 2,194,654,161. 4.74% 1,461,145,641. 3.29% 1.45%
22
Bengang Steel Plates Co., Ltd. 2023 Annual Report
equivalents 34 87
Accounts 1,328,532,598.
2.87% 897,230,896.06 2.02% 0.85%
receivable 47
Contract assets 0.00%
7,708,372,894. 8,463,728,475.
Inventory 16.67% 19.04% -2.37%
81 18
Investment
0.00%
properties
Long-term
equity 46,910,346.41 0.10% 51,030,777.18 0.11% -0.01%
investments
25,028,192,964 24,836,556,422
Fixed assets 54.11% 55.86% -1.75%
.67 .90
Construction in 4,308,404,147. 3,158,195,899.
9.31% 7.10% 2.21%
progress 31 65
Right-of-use 1,319,616,179. 1,379,990,713.
2.85% 3.10% -0.25%
assets 37 89
Short-term
328,000,000.00 0.71% 49,200,000.00 0.11% 0.60%
loans
Contract 3,303,108,592. 3,794,115,592.
7.14% 8.53% -1.39%
liabilities 38 29
Long-term 1,723,726,700. 1,726,938,302.
3.73% 3.88% -0.15%
borrowings 80 30
1,342,427,252. 1,384,348,462.
Lease liabilities 2.90% 3.11% -0.21%
45 18
High proportion of abroad assets
□Applicable Not applicable
2. Assets and liabilities measured at fair value
□Applicable Not applicable
3. Restricted assets by the end of the period
The end of the period
Items
Book balance Restricted reasons
Cash and cash
1,009,879,189.82 Margin on bills, Letter of credit margin
equivalents
Notes receivable 218,427,117.76 Pledge
Total 1,228,306,307.58
VII. Analysis of the investment situation
1. General
□Applicable Not applicable
23
Bengang Steel Plates Co., Ltd. 2023 Annual Report
2. Acquiring significant equity investment in the reporting period
□Applicable Not applicable
3. Undergoing significant non-equity investment in the reporting period
□Applicable Not applicable
4. Investment of financial assets
(1) Investment in securities
□Applicable Not applicable
There was no investment in securities during the reporting period.
(2) Investment in derivatives
□Applicable Not applicable
There was no investment in derivatives during the reporting period.
5. Use of raised funds
Applicable □Not applicable
(1) Use of raised funds
Applicable □Not applicable
Unit: RMB 10,000
The
total
amount Cumula Cumula
Amoun
of tive tive The
t of
funds total proport The purpos
Used The funds
raised amount ion of total e and
Total amount total raised
Metho Net for of total amount destina
amount of used after
d of amount change funds raised of tion of
Year of raised amount being
raising of fund of raised funds funds the
raised fund of idle for
funds raised purpos for for raised raised
funds this funds more
e change change not funds
period raised than
during of s of used not yet
two
the purpos purpos used
years
reporti e es
ng
period
Private
placem Not
400,00 396,58 396,58
2018 ent to 0 0 applica
0 0 0
raise ble
funds
Issue of
680,00 675,92 2,963.8 426,64 249,27 101,47
2020 convert Deposit
0 0 2 0.28 9.72 9
ible
24
Bengang Steel Plates Co., Ltd. 2023 Annual Report
bonds
1,080,0 1,072,5 2,963.8 823,22 249,27 101,47
Total -- 0 0 0.00% --
00 00 2 0.28 9.72 9
Description of the overall use of raised funds
(I) Status of use of funds for investment projects with raised funds
Details of the actual use of proceeds in FY2023 of the Company are set out in (2) Details of raised fund commitment projects.
(II) 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 in the investment projects of raised funds or their implementation
locations and implementation methods.
(III) 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 stocks
At 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 for Investment 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
uses self-raised funds for project construction. As of February 28th, 2018, the pre-invested amount of self-raised funds replaced
by raised funds was RMB 1,822,749,211.07, including RMB 1,484,133,089.39 for the cold-rolled high-strength steel reconstruction
project and RMB 338,616,121.68 for the hot-dip galvanizing production line project of the third cold rolling plant.
During the period from March 1st, 2018 to February 28th, 2019, the Company paid RMB 88,296,207.56 for the construction of
projects with self-raised funds, of which RMB 86,709,830.40 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 RMB 1,586,377.16 (not yet
replaced from the special account of raised funds). The Company transferred RMB 86,709,830.40 from the fundraising account to
the general deposit account in 2020.
During the period from March 1st, 2019 to May 31st, 2021, the Company paid RMB 62,608,242.01 for the construction of the
project with self-raised funds, of which RMB 50,391,999.49 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 12,216,242.52. The
Company has transferred the above amount from the fundraising account to the general deposit account in 2021.
During the period from June 1st, 2021 to May 31st, 2022, the Company paid the amount of RMB 37,435,207.38 for the construction
of the raised fund investment project with self-raised funds, all of which was used for the construction of cold-rolled high-strength
steel renovation project. As of December 31st, 2022, the Company has transferred the above amount from the fund-raising account
to the general deposit account in 2022.
During the period from January 1st ,2023 to December 31st ,2023, the construction amount of the fund-raising investment project
raised for the company by self-financing payment was 21,092,488.80 RMB, all of which were used for the construction of cold-
rolled high-strength steel transformation project. As of December 31st , 2023, the above amount was transferred from the
fundraising account to the general deposit account.
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 RMB 366,180,860.17. 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 31st, 2020, the pre-invested amount of self-raised funds replaced by
25
Bengang Steel Plates Co., Ltd. 2023 Annual Report
raised funds was RMB 365,630,860.17, including RMB 76,278,945.59 for the No. 8 casting machine project of the steelmaking
plant, RMB 119,043,290.09 for the No. 5 blast furnace capacity replacement project in the ironmaking plant, and special The steel
electric furnace upgrade and reconstruction project is RMB 59,948,807.90, the CCPP power generation project is 95,098,084.16
yuan, and the steel plant No. 4-6 converter environmental protection renovation project is RMB 15,261,732.43. As of July 6 th,
2020, the above-mentioned issuance fee of RMB 550,00.00 paid by the Company's own funds will be replaced with the raised
funds.
During the period from March 1st, 2019 to May 31st, 2021, the Company used self-raised funds to pay the raised funds to invest in
the project construction amount of RMB 1,082,356,809.47, including high grade high magnetic inductance non-oriented silicon
steel project RMB 180,000.00. The No. 8 casting machine project is RMB 55,364,729.08, the No. 5 blast furnace capacity
replacement project in the iron plant is RMB 628,049,033.12, the special steel electric furnace upgrading project is RMB
253,298,156.22, the CCPP power generation project is RMB 115,353,050.36, and the No. 4-6 converter environmental protection
renovation project in the steel plant item RMB 30,111,840.69. The Company has transferred the above amount from the
fundraising account to the general deposit account in 2021.
During the period from June 1st, 2021 to May 31st, 2022, the Company paid the construction amount of RMB 614,208,698.23 for
the investment projects with self-raised funds, including: No.8 casters project of steel-making plant No.8 RMB 12,881,890.61, No.5
blast furnace capacity replacement project of iron making plant RMB 17,508,088.97, electric furnace upgrade project of special
steel RMB 364,155,482.35, CCPP power generation project RMB 186,441,497.75, No.4 and No.6 converters environmental
improvement project of steel making plant RMB 33,221,738.55. The Company has transferred the above amount from the fund-
raised account to the general deposit account in 2022.
During the period from January 1st ,2023 to December 31st ,2023, the company paid self-raised funds to raise funds for the
construction of investment projects amounted to RMB 610,957,924.72, of which : No.8 Caster Project of Sheet Steelmaking Plant
RMB 125,000,000.00, No.5 Blast Furnace Energy Saving and Environmental Protection Reconstruction Project of Ironmaking Plant
RMB 15,316,136.52, Special Steel Electric Furnace Upgrading and Reconstruction Project RMB 429,392,157.76, CCPP Project RMB
19,796,661.74, No.4-6 Converter Environmental Protection Reconstruction Project RMB 21,452. 968.70. As of December 31 st,
2023, the Company transferred funds from the fundraising account to the general deposit account.
(IV) 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 the raised funds, part of the funds raised by the company's non-public offering was temporarily idle. In accordance
with the provisions of the Supervisory Guidelines for Listed Companies No. 2 - Supervisory Requirements for the Management and
Use of Funds Raised by Listed Companies (Revised in 2022) (SFC Announcement [2022] No. 15) and other normative documents,
in line with the principle of following the principle of maximizing the interests of shareholders, and on the premise of ensuring the
capital needs of the raised funds investment projects and the normal progress of the raised funds investment projects, in order to
improve the use efficiency of raised funds will further reduce the company's financial costs, reduce financial expenditures, and
protect the interests of investors. The Company plans to use idle raised funds to temporarily supplement working capital. The use
period shall not exceed 12 months from the date of deliberation and approval by the Board of Directors. Liquidity 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 RMB 530,000,000.00 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 13th, 2018).
As of March 11th, 2019, the Company has returned all the above-mentioned idle raised funds of RMB 530,000,000.00 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 the working capital
In 2019, the Company used idle raised funds of RMB 742,000,000.00 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 21st, 2019).
As of March 23rd, 2020, the company has returned all the above-mentioned idle raised funds of RMB 742,000,000.00 used to
26
Bengang Steel Plates Co., Ltd. 2023 Annual Report
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 RMB 666,000,000.00 (RMB 370,000,000.00 for the cold-rolled high-strength steel
reconstruction project, and RMB 296,000,000.00 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 27th, 2020, the Company has returned all the above-mentioned idle raised funds of RMB 666,000,000.00 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 RMB 666,000,000.00 (RMB 370,000,000.00 for the cold-rolled high-strength steel
renovation project, and RMB 296,000,000.00 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
been reviewed and approved, and the independent directors of the Company have issued a clear agreement, that 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 27th, 2021, the Company has returned all the above-mentioned idle raised funds of RMB 666,000,000.00 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 temporarily supplement working capital
The Company used idle raised funds of RMB 604,000,000.00 (RMB 320,000,000.00 for the cold-rolled high-strength steel
reconstruction project, and RMB 284,000,000.00 for the hot-dip galvanizing production line project of the third cold rolling plant)
to temporarily supplement the working capital. The 19th meeting and the 17th meeting of the 8th Supervisory Committee
reviewed and approved, and the independent directors of the Company have expressed their 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 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 28th, 2022, the Company used the idle funds raised from non-public issuance of stocks to temporarily supplement the
balance of working capital of RMB 604,000,000.00.
(6) In July 2022, the funds raised from the non-public offering of stocks temporarily supplemented the working capital
The Company used idle funds raised of RMB 592,000,000.00 (RMB 308,000,000.00 for the cold-rolled high-strength steel
renovation project and RMB 284,000,000.00 for hot-dip galvanizing production line projects of three cold-rolling plants) to
temporarily supplement the working capital at the third meeting of the 9th Board of Directors and the third meeting of the 9th
Supervisory Committee of the Company held on July 28th, 2022 considered and approved, and the independent directors of the
Company have expressed their clear consent to the supplemental working capital for a period not exceeding 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.
27
Bengang Steel Plates Co., Ltd. 2023 Annual Report
(7) In July 2023, the non-public offering of shares raised funds to temporarily supplement the current funds.
The company used idle funds to raise CNY 548,800,000.00 ( cold-rolled high-strength steel renovation project of CNY
263,000,000.00, hot-dip galvanizing production line project of No.3 Cold Rolling Plant of CNY 285,800,000.00 ) to temporarily
supplement current funds. The 17th meeting of the 9th Board of Directors and the 12th meeting of the 9th Board of Supervisors
held on July 19,2023 were deliberated and approved. The independent directors of the company have issued clear consent
opinions, and the time for supplementing current funds does not exceed 12 months.
The sponsors of the company 's non-public offering agreed that the company used the idle raised funds to temporarily
supplement the liquidity and issued a ' Guotai Jun 'an Securities Co., Ltd.on the company 's use of idle raised funds to
temporarily supplement the liquidity of the verification opinions '.
In December of the same year, the company used non-public offering stocks to raise funds to permanently replenish liquidity.
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 RMB 4,180,000,000.00 (RMB 1,010,000,000.00 for the high-grade high magnetic induction
non-oriented silicon steel project, RMB 220,000,000.00 for the No. 8 casting machine project of the steelmaking plant, RMB
800,000,000.00 for the production capacity replacement project of the No. 5 blast furnace in the ironmaking plant, and RMB
1,300,000,000.00 for special steel electric furnace upgrade and reconstruction project, RMB 700,000,000.00 for CCPP power
generation project, RMB 150,000,000.00 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 28th, 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 27th, 2021, the Company has returned all the above-mentioned idle raised funds of RMB 4,180,000,000.00 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 RMB 3,030,000,000.00 (RMB 1,010,000,000.00 for the high-grade high magnetic induction
non-oriented silicon steel project, RMB 150,000,000.00 for the No. 8 casting machine project of the steelmaking plant, RMB
160,000,000.00 for the production capacity replacement project of the No. 5 blast furnace in the ironmaking plant, and special
steel electric furnace upgrade and reconstruction project. RMB 1,000,000,000.00, CCPP power generation project RMB
590,000,000.00, steel plant No. 4-6 converter environmental protection renovation project RMB 120,000,000.00) Temporary
replenishment of working capital The nineteenth meeting of the eighth Board of Directors of the company held on July 28 th, 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 July 28th, 2022, 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 3,030,000,000.00.
(3) In July 2022, the funds raised from the public offering of convertible bonds temporarily replenished working capital
The Company used idle proceeds of RMB 3,014,000,000.00 (RMB 1,015,000,000.00 for high grade high magnetic susceptibility
non-oriented silicon steel project, RMB 165,000,000.00 for No. 8 casters project of steel making plant, RMB 175,000,000.00 for
28
Bengang Steel Plates Co., Ltd. 2023 Annual Report
No. 5 blast furnace capacity replacement project of iron making plant, RMB 933,000,000.00 for special steel electric furnace
upgrade project, CCPP power generation project RMB 578,000,000.00, and RMB 148,000,000.00 for environmental protection
improvement project of No. 4-6 converters of steel making plant), temporary supplemental working capital matters were
considered and approved at the third meeting of the ninth session of the Board of Directors and the third meeting of the ninth
session of the Supervisory Committee of the Company held on July 28th, 2022, and the independent The directors have expressed
their clear consent to the supplemental liquidity for a period not exceeding 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.
( 4 ) In July 2023, the non-public offering of shares to raise funds to temporarily supplement current funds
The Company used idle raised funds of RMB 1,961,200. 000.00 ( high-grade high magnetic induction non-oriented silicon steel
project RMB 1,015,000,000.00, No.8 casting machine project of steelmaking plant RMB 125,000,000.00, No.5 blast furnace
capacity replacement project of ironmaking plant RMB 145,000,000.00 , electric furnace upgrading project of special steel RMB
188,000,000.00, CCPP power generation project RMB 393,200,000.00, No.4-6 converter environmental protection renovation
project of steelmaking plant RMB 95,000,000.00). The issue of temporary supplementary working capital was considered and
approved at the 17th meeting of the 9th board of directors and the 12th meeting of the 9th board of supervisors held on July
19,2023. The company 's independent directors have issued a clear consent to supplement the liquidity for no more than 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 31st, 2023, the balance of RMB 1,961,200,000.00 was used by the Company to temporarily replenish working
capital with idle proceeds from the public offering of convertible corporate bonds.
(V) Cash management with idle raised funds
The Company does not use idle raised funds for cash management.
(VI)Use of surplus raised funds
On December 1st , 2023, the Company held the 22nd meeting of the 9th Board of Directors and the 15th meeting of the 9th Board
of Supervisors to review and pass the Proposal on Closing the Project of Non-public Offering of Shares and Permanently
Replenishing Working Capital with the Surplus Raised Funds. In view of the fact that the Company's non-public stock offering
projects "Cold Rolled High Strength Steel Reconstruction Project" and "Hot Dip Galvanizing Production Line Project of No.3 Cold
Rolling Plant" in 2018 have been completed and reached the scheduled serviceable condition, in order to improve the use
efficiency of the Company's raised funds and reduce financial costs, and in combination with the liquidity demand in the actual
operation process of the Company, it is planned to settle the above-mentioned raised funds investment projects and permanently
replenish the working capital with the surplus raised funds of RMB 561,412,300 (the specific amount shall be subject to the bank
interest balance on the day when the funds are transferred out).
Besides, the Company does not use the surplus funds from the raised capital investment projects for other raised capital
investment projects or non-raised capital investment projects.
(VII) Use of over-raised funds
The Company does not use over-raised funds.
(VIII) Purpose and whereabouts of unused raised funds
1. Purpose and whereabouts of unused raised funds for non-public offering of shares
In 2018, the non-public offering of stock investment projects ' Cold-Rolled High-Strength Steel Transformation Project ' and ' Hot-
Dip Galvanizing Production Line Project of No.3 Cold Rolling Plant ' have been completed, and the fund-raising investment project
has been completed and the fund-raising fund will be saved.561.4123 million yuan ( the specific amount is based on the bank
29
Bengang Steel Plates Co., Ltd. 2023 Annual Report
balance on the day the fund is transferred out ) will permanently supplement the working capital.
2. Purpose and whereabouts of unused raised funds for public offering of convertible corporate bonds
As of December 31st, 2023, in addition to the above-mentioned "(III) Preliminary investment and replacement of raised funds
investment projects", and "(IV) 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.
(IX) Other information on the use of raised funds
There were no other situations about the use of raised funds of the Company.
(2) Fundraising commitments
Applicable □Not applicable
Unit: RMB 10,000
Commitm Cumulativ
Whether Total Investme
ent to Amount e Item Benefits Has the
the item committe nt Whether
investme Adjusted invested investme reaches realized project
has been d progress the
nt total during nt schedule during feasibilit y
changed investme by the expected
projects investme the amount d the changed
(including nt of end of the benefit is
and over- nt (1) reporting by the availabilit reporting significa
some raised period (3) achieved
raised period end of the y date period ntly
changes) funds = (2)/ (1)
funds period (2)
Commitment to Investment Projects
Cold-
rolled
high- 2017 年
197,212.
strength No 226,580 226,580 87.04% 12 月 31 9,267.53 No No
39
steel 日
renovatio
n project
Hot-dip
galvanizin
g
productio
2018 年
n line 41,514.2
No 70,000 70,000 59.31% 12 月 31 8,826.38 Yes No
project of 4
日
the third
cold
rolling
plant
Not
Repay
No 100,000 100,000 100,000 100.00% applicabl No
bank loan
e
High
grade
high
Not
magnetic
No 101,620 101,620 0 141 0.14% applicabl No
induction
e
non-
oriented
silicon
30
Bengang Steel Plates Co., Ltd. 2023 Annual Report
steel
engineeri
ng project
Steel
Plant No. October -
18,833.9
8 Casting No 33,500 33,500 1,185.02 56.00% 31st , 11,455.3 No No
3
Machine 2020 7
Project
No. 5
blast
furnace
Novemb
capacity 78,635.3 -
No 96,000 96,000 136.1 100.00% er 30th, No No
replacem 3 1,409.69
2020
ent
project in
ironworks
Special
Steel
Electric
Furnace Not
80,086.0
Upgrade No 141,600 141,600 1,181.44 57.00% applicabl No
9
and e
Reconstru
ction
Project
CCPP
Decemb
power 40,714.1 27,038.1
No 83,300 83,300 277.12 49.00% er 31st, Yes No
generatio 4 7
2022
n project
Environm
ental
protectio
n
renovatio Not
n project No 19,900 19,900 184.14 8,229.8 41.00% applicabl No
of e
converter
No. 4-6 in
steelmaki
ng plant
Not
Repay
No 200,000 200,000 0 200,000 100.00% applicabl No
bank loan
e
Subtotal
of
Committe
1,072,50 1,072,50 765,366. 32,267.0
d -- 2,963.82 -- -- -- --
0 0 92 2
Investme
nt
Projects
Over-raised funds are invested in Over-raised funds are invested in
None
1,072,50 1,072,50 765,366. 32,267.0
Total -- 2,963.82 -- -- -- --
0 0 92 2
31
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Explanati
on by
project,
the
situation
and
reasons
for not
reaching
the
planned
progress
and
The market environment has undergone major changes. The cold-rolled high-strength steel reconstruction project and the hot-dip
expected
galvanizing production line project of the third cold-rolling plant have reached their production capacity.The high-grade high-
benefits
magnetic-induction non-oriented silicon steel project is greatly affected by market factors, and the development strategy is
(including
adjusted to continuously track market changes.
the
reasons
for
selecting
"Not
applicabl
e" for
"Whether
to
achieve
the
expected
benefits")
Status of
the
descriptio
n of
None
material
changes
in project
feasibility
Status of
amount,
purpose
and
progress Not applicable
of use of
over-
raised
funds
Status of
changes
in
implemen
tation
Not applicable
locations
of raised
funds
investme
nt
32
Bengang Steel Plates Co., Ltd. 2023 Annual Report
projects
Status of
adjustme
nt of the
implemen
tation
method Not applicable
of raised
funds for
investme
nt
projects
Status of Applicable
prelimina
ry
investme
nt and
replacem
ent of For details, please refer to the special report III. (4)
raised
funds for
investme
nt
projects
Status of Applicable
temporar
y
replenish
ment of
working For details, please refer to the special report III. (4)
capital
with idle
raised
funds
Reasons Applicable
and In 2018, the non-public offering stock offering project closed and the savings raised RMB 561.4123 million ( the
amount specific amount is based on the balance of the bank balance on the day of the transfer of funds ) to permanently
for the supplement the liquidity. The main reasons for the balance of the raised funds : in the process of implementing the
balance raised funds investment project construction, the company strictly follows the relevant provisions on the use of the
of raised raised funds, starts from the actual situation of the project, and does not affect the smooth implementation of the
funds in raised funds investment project. Under the premise of completion, in line with the principles of rationality, economy
project and effectiveness, the Company carefully uses the raised funds, strengthens the control, supervision and management
implemen of each link cost, and reasonably saves the project construction cost. In order to improve the efficiency of the use of
tation raised funds, under the premise of ensuring that it does not affect the construction of investment projects and the
safety of raised funds, the Company has obtained certain investment income by using some temporarily idle raised
funds for cash management. At the same time, a certain amount of deposit interest income has also been generated
during the storage of raised funds.
Use and
whereabo
uts of
Unused raised funds are deposited in the special account of raised funds.
unused
raised
funds
Problems
or other There is no problem otherwise
situations
33
Bengang Steel Plates Co., Ltd. 2023 Annual Report
in the use
and
disclosure
of raised
funds
(3) The situation for change of fund-raising projects
□Applicable Not applicable
During the reporting period, the Company did not have any changes in the fund raising project.
VIII. Significant assets and equity sold in the reporting period
1. Significant assets sold
□Applicable Not applicable
There was no significant asset sold during the reporting period.
34
Bengang Steel Plates Co., Ltd. 2023 Annual Report
2. Substantial equity sold
Applicable □Not applicable
IX. 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: RMB
Company Company Main Registered Operating Operating
Total assets Net assets Net Profit
name type business capital income profit
Bengang
Puxiang
Processing
Cool 1,920,000, 4,273,687, 2,304,357, 8,939,304, 325,328,06 273,163,97
Subsidiary and sales of
Rolling 000 500.63 344.37 737.19 4.39 3.25
steel
Steel Sheet
Co., Ltd.
Acquirement and disposal of subsidiaries during the reporting period
Applicable □Not applicable
Method of acquisition and disposal of Impact on overall production operations
Company name
subsidiaries during the reporting period and results
Non-important shareholding subsidiary
and it has no significant impact on the
Zhejiang Jingrui Steel Processing Co., Ltd. Equity transfer
company 's production and operation
and performance.
Illustration of major holding and equity participation companies
The Company transferred the 20 % equity transfer of Zhejiang Jingrui Steel Processing Co., Ltd., a subsidiary of the company on
February 28th, and completed the change of industry and commerce on March 6th. At present, the company no longer holds the
equity of Zhejiang Jingrui Steel Processing Co., Ltd., this transfer did not have a greater impact on the Company.
X. Structure entities controlled by the Company
□Applicable Not applicable
XI. Prospect for future development of the Company
(I) The development trend of the industry and the market competition pattern the Company faces
The year of 2024 is a key year to implement the spirit of the 20th National Congress of the Communist Party of China and
promote the implementation of the 14th Five-Year Plan. It is also an important year for Benxi Iron and Steel Plate to deepen reform,
strengthen chain, upgrade and improve core competitiveness. At present, the steel industry has entered a critical period of high-
quality development. Green low-carbon and intelligent manufacturing have brought more severe challenges and disruptive changes.
The industry's consumer demand is insufficient, corporate profits continue to decline, and market uncertainty factors increase. We
should not only face up to the difficulties, but also be confident. The Central Economic Work Conference pointed out that it is
necessary to fully optimize the policy mix, effectively guide market expectations, and stabilize market confidence. As a listed company
dominated by high-quality plate in Ansteel Group, we shall move towards the goal of “first parade” of domestic automobile steel,
35
Bengang Steel Plates Co., Ltd. 2023 Annual Report
further optimize and strengthen the brand of automobile steel, and enhance the influence of core products and the profitability of
enterprises.
(II) Company development strategy
General policy of production and management and instructive guiding thought for work in 2024 of the Company: :Take Xi
Jinping Thoughts on Socialism with Chinese Characteristics in the New Era as the guiding principle, study and implement the spirit
of the 20th Party Congress and The Second Plenary Session of the 20th Central Committee. Uphold the principle of innovation,
maintain strategic concentration, take high-quality development as the primary task, and play a good role as the vanguard and
main force in building a new development pattern of “Reform + Lean” and “Digital + Technology” .
(III) Business plan
In 2023, the production and operation target: strive to complete 10.33 million tons of pig iron, 11.15 million tons of crude steel,
10.46 million tons of hot-rolled plate, 6.66 million tons of cold-rolled plate and 458,000 tons of special steel to realize safety
production target of “Three Zeroes”(Zero responsible accident, Zero personal injury and Zero damage to the environment).
In order to implement the above overall work concept and production and management objectives, we focus our efforts on the
following aspects:
First, adhere to the bottom line thinking, and strive to prevent and resolve the four risks.
Second, adhere to the overall coordination of production and marketing, and focus on optimizing and adjusting the three
structures.
Third, adhere to cost control, focus on compaction pressure drop process costs.
Fourth, adhere to the efficient operation, and strive to continuously improve the eight efficiency.
Fifth, adhere to the people 's position, and strive to do a good job in people 's livelihood projects.
(IV) Maintain the current business and complete the funding arrangements required for the investment
projects under construction
The Company will use its own funds and bank loans to meet the funds required for production and operation and technological
transformation.
(V) Possible risks
1. Risks of macroeconomic policies
The Russian-Ukrainian war and the Palestinian-Israeli Conflict are continuing, the century-old changes accelerated, and the world
economic recovery was weak. The foundation of China 's economic recovery is not yet solid. Economic development is facing the
triple pressure of demand contraction, supply shock and expectation weakening. The external export environment is severe and the
downward pressure on the economy is increasing. The downstream demand of the domestic steel industry is generally weak, and
the market pattern of supply exceeding demand has not changed fundamentally. The optimization and adjustment of domestic steel
layout has accelerated, and the strategic restructuring of iron and steel enterprises has continued to advance. Changes in macro
policies such as domestic steady growth finance and finance will bring many uncertainties to the development of the steel industry.
Countermeasures : First, strengthen the research on national fiscal, financial and industrial policies, fully, accurately and
comprehensively implement the new development concept, and continuously improve the forward-looking and effectiveness of
policy research ; the second is to seize the development opportunities of macro policy adjustment, optimize and adjust strategic
36
Bengang Steel Plates Co., Ltd. 2023 Annual Report
planning in time, focus on key areas such as safety, green, high efficiency, intelligence and quality, adhere to the ultimate thinking,
deepen lean operation, accelerate the transformation of old and new kinetic energy, actively promote green low-carbon
transformation and upgrading, create more comparative advantages, continuously improve core competitiveness, and strive to
achieve high-quality development of the Company.
2. Raw fuel prices and supply risks
The global iron ore supply monopoly situation is difficult to change in the short term, the domestic iron ore demand is highly
dependent on foreign countries, the short board of strategic resources such as coal and coke is obvious, the implementation time of
the " cornerstone plan " of China 's iron and steel industry is short, and the independent control ability of the supply chain of the iron
and steel industry chain is weak. The financial attributes of black resources of ore and coal char are enhanced, and speculation of
floating capital at home and abroad is frequent. The energy-saving and emission reduction policies continue to deepen, and the
production capacity of upstream coal char enterprises is limited. Various internal and external factors lead to frequent fluctuations
in raw fuel prices, and the risk of raw fuel prices and safe supply increases.
Countermeasures : First, adhere to the ' predictive ' business procurement concept, strengthen the analysis and judgment of raw fuel
supply and market demand, build a raw fuel procurement model, scientifically control the procurement timing, and adjust the
procurement strategy in a timely manner ; the second is to strengthen the strategic cooperation of raw fuel supply, consolidate and
expand domestic raw fuel procurement channels, deeply aggregate raw fuel resources, accelerate the formation of domestic and
foreign dual-cycle supply chain security guarantee pattern, and enhance the price advantage of scale procurement ; the third is to
optimize the production burden structure, adjust the raw fuel procurement structure, reasonably control the raw fuel inventory,
effectively reduce the adverse effects of raw fuel price fluctuations, and minimize the cost of raw fuel.
3. Environmental protection risks
With the continuous strengthening of the state 's environmental protection efforts and the promotion of “carbon peak, carbon
neutralization”, the environmental protection department continues to increase the supervision of the pollution control of the iron
and steel industry, the environmental protection investment and operation cost of the iron and steel enterprises will increase, and
the iron and steel enterprises will face increasing environmental protection pressure.
Countermeasures : First, establish and improve the production and operation system of green low-carbon cycle development, that
is, through the upgrading of equipment energy conservation and environmental protection, the promotion and application of
advanced technology, further improve the efficiency of resource and energy utilization, promote ultra-low emission transformation
and comprehensive treatment of pollutants, and continuously reduce carbon emission intensity ; second, 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 of existing environmental protection equipment and facilities and standardized operation control, focusing on
strengthening the monitoring of atmospheric pollution sources ; the fourth is to build a “AAA” level scenic spot garden factory as the
starting point, and strive to improve the factory environment.
XII. Researches, visits and interviews received in this reporting period
Applicable □Not applicable
The main
content of the
Index of basic
Reception Reception Reception conversation
Reception time Reception type information of
location method object and the
the research
information
provided
February 28th, Benxi Telephone Institution Beijing Zhetou Company Transcript of
37
Bengang Steel Plates Co., Ltd. 2023 Annual Report
2023 communication Investment Co., production and investor
Ltd. -Lin operation and relations
Xiaoshan and industry activities of
Fan Guannan; situation Bengang Steel
Gaokang
Plates Co., Ltd.
Capital
on February
Investment
Management 28th , 2023
Co., Ltd. -Miao
Yongyan; China
Securities-
Zhang
Shaochen;
Forbes Global
Alliance-Yao
Lei; Great Wall
Securities-
Dongdan; JING
CAI HU ZHI
GROUP Co., Ltd.
-Shi Hongxia;
Beijing Quant
Investment Co.,
Ltd. -Dou
Changmin;
Shanghai
Mingshi Private
Fund
Management
Co., Ltd. -Liu
Jingfeng;
Beijing Jiaheng
Private Fund
Management
Co., Ltd. -Zhang
Zhanqian;
HSBC-Li
Junwen;
Zhongtai
Securities-Zhou
Xingzhen;
Beijing Gelei
Fund Co., Ltd. -
Yuan Shuai;
Beijing Fantaike
Technology Co.,
Ltd. -Li
Huayong;
Beijing
Hechuang
Youliang
Private Fund
Management
Co., Ltd. -Zhao
Tianyu;
Hangzhou
Dechuang
Investment
Management
Co., Ltd. -Peng
Guolin; Beijing
Beiyin Fengye
Group Co., Ltd.
38
Bengang Steel Plates Co., Ltd. 2023 Annual Report
-Zhang Peng
Yinhua Fund
Management
Co., Ltd. -Hua
Qiangqiang;
Pengyang Fund
Management
Co., Ltd. -Yuan
Yamei; Dongwu
Fund
Management
Co., Ltd. -Qin
Bin; Guangfa
Fund
Management
Co., Ltd. -Wu
Xiaogang;
Minsheng
Securities
Research
Institute-Ren
Heng; Xingye Transcript of
Fund-Li Xin; investor
Shanghai Qushi Company
relations
Assets production and
March 30th, Telephone activities of
Benxi Institution Management operation and
2023 communication Bengang Steel
Co., Ltd. -Zhang industry
Hongyun; China Plates Co., Ltd.
situation
Life AMP Asset on March 23rd ,
Management 2023
Co., Ltd. -Ge Jia;
Huabao WP
Fund
Management
Co., Ltd. -Hu
Yingzhen;
Bosera Funds
Management
Co., Ltd. -Wang
Han and Gong
Runhua; Beijing
Xingshi
Investment
Management
Co., Ltd. -Qiu
Yinglun; China
Asset
Management
Co., Ltd. -Hu
Yuxi
Bosera Funds
Management
Co., Ltd. -Wang Transcript of
Yixian; CITIC- investor
Prudential Fund Company
relations
Management production and
March 30th, Telephone activities of
Benxi Institution Company Ltd. - operation and
2023 communication Bengang Steel
Lin Li; Yinhua industry
Fund Plates Co., Ltd.
situation
Management on March 30th ,
Co., Ltd. -Hua 2023
Qiangqiang;
Everbright
39
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Pramerica Fund
Management
Co.,Ltd. -Hua
Yeshu; Wanjia
Asset
Management
Co.,Ltd. -An
Jingyi; China
Universal Asset
Management
Co.,Ltd. -Huang
Heqing; Bosc
Asset
Management
Co.,Ltd. -Lu
Yang;
Lombarda
China Fund
Management
Co., Ltd. -Li Bo;
Evergrande Life
Assurance Co.,
Ltd. -Shi Han;
PICC Asset
Management
Co., Ltd. -Bi
Qinglan; Zhihe
Yuanjian
Private Fund
Management
Center Co., Ltd.
-Sun Bin;
Wisdomshire
Blossom
Investment
Management
Co., Ltd. -Ding
Chenxia;
Zhongtian
Securities Co.,
Ltd. -Li Chen;
China Capital
Management
Co., Ltd. -Tian
Mingzhou;
Zheshang
Securities Co.,
Ltd. Shanghai
Securities
Proprietary
Branch -Shi
Lingyu; Anxin
Securities Asset
Management
Co., Ltd. -Feng
Siyuan; China
National Gold
Group Asset
Management
Corporation -
Hu Di; China
Securities Co.,
Ltd. Proprietary
40
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Branch -Liu
Guangzong and
Liu Lan
Transcript of
investor
Company
relations
Earnings production and
April, 11th , activities of
Benxi Others Individual communication operation and
2023 Bengang Steel
conference industry
Plates Co., Ltd.
situation
on April, 11th ,
2023
Huatai
Securities Co.,
Ltd. -Li Bin and
Wang Xinyan;
Citic Securities
Co., Ltd. -Wang Transcript of
Bojun; Beijing investor
Company
Xingshi relations
production and
Investment activities of
May 24th , 2023 Benxi Field research Institution operation and
Management Bengang Steel
Co., Ltd. -Qiu industry
Plates Co., Ltd.
Yinglun; situation
on May 24th ,
Shanghai 2023
Greenwoods
Asset
Management
Co., Ltd. -Wang
Ziyu
Transcript of
investor
Company
relations
GF Securities production and
Telephone activities of
June 1st , 2023 Benxi Institution Co.,Ltd. -Li Sha operation and
communication Bengang Steel
and Chen Qiwei industry
Plates Co., Ltd.
situation
on June 1st ,
2023
Transcript of
GF Securities
investor
Co., Ltd. -Gong Company
relations
Shuai; production and
activities of
June 7th , 2023 Benxi Field research Institution Southern Fund operation and
Bengang Steel
Management industry
Plates Co., Ltd.
Co., Ltd. -Bao situation
on June 7th ,
Yuchen
2023
Guolian
Securities Co.,
Ltd. -Liu Yiming;
Huaan
Securities Co., Transcript of
Ltd. -Hu investor
Company
Qianqian; relations
production and
Zhongrong activities of
June 8th , 2023 Benxi Field research Institution operation and
International Bengang Steel
Trust Co., Ltd. - industry
Plates Co., Ltd.
Tu Jiawei; situation
on June 8th ,
Cathay 2023
Insurance Co.,
Ltd. -Gan Ge;
Xingzheng
Global Fund
41
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Management
Co., Ltd. -Qian
Yiwen;
Warburg Fund
Management
Co., Ltd. -Zhang
Yanwen; China
Life AMP Asset
Management
Co., Ltd. -Lin
Han; Wanlian
Securities Co.,
Ltd. -Zhang
Weijing; China
Fortune
Securities Ltd. -
Liu Yiwen;
China Plus
Investment
Limited -Gao
Jiayue; First
Capital
Securities Co.,
Ltd. -Yu Xiuying;
Haitong
International
Asset
Management
(HK) Limited -
Deng Zhanfei;
Ping An Finance
Co., Ltd. -Gan
Lu; First Capital
Securities Co.,
Ltd. -Bian Qin;
China
Everbright
Investment and
Assets
Management
Co., Ltd. -Yuan
Wai; Capital
Securities
Corporation
Limited -Tang
Ren; Xingye
Economic
Research
Consulting Co.,
Ltd. -Hua Peiqi
Changjiang
Securities-Zhao Transcript of
Chao, Yi Hong; investor
Company
Taikang Assets- relations
production and
Xiao Rui; activities of
June 20th , 2023 Benxi Field research Institution operation and
Tianan Life Bengang Steel
industry
Insurance-Cao Plates Co., Ltd.
situation
Yuan; China on June 20th ,
Europe Fund- 2023
Zheng Sien
Everbright Company Transcript of
June 21st , 2023 Benxi Field research Institution
Securities Co., production and investor
42
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Ltd. -Dai Mo; operation and relations
China Life Asset industry activities of
Management situation Bengang Steel
Co., Ltd. -Yang Plates Co., Ltd.
Chen; Baoying on June 21st ,
Fund Co., Ltd. - 2023
Jiang Le
Transcript of
investor
Company
relations
Citic Securities production and
Telephone activities of
July 18th , 2023 Benxi Institution Co., Ltd. -Tang operation and
communication Bengang Steel
Chuanlin industry
Plates Co., Ltd.
situation
on July 18th ,
2023
Citic Securities
Co., Ltd. -Du Transcript of
Bozhao; investor
Company
Jinyuan Capital relations
production and
Management activities of
July 20th , 2023 Benxi Field research Institution operation and
(Xiamen) Co., Bengang Steel
industry
Ltd. -Wu Plates Co., Ltd.
situation
Xinbin, Huang on July 20th ,
Zhaoteng and 2023
Wu Qian
Transcript of
Agricultural investor
Company
Bank of China relations
production and
September 8th , Telephone Huili Fund activities of
Benxi Institution operation and
2023 communication Management Bengang Steel
industry
Co., Ltd. -Zhou Plates Co., Ltd.
situation
Zihan on September
8th , 2023
Transcript of
investor
Company
relations
Earnings production and
September activities of
Benxi Others Individual communication operation and
12th , 2023 Bengang Steel
conference industry
Plates Co., Ltd.
situation
on September
12th , 2023
The Pacific
Securities Co.,
Ltd. -Wang Qili
and Zhang Lei;
Guosen
Transcript of
Securities Co.,
investor
Ltd. -Yang Lujia; Company
relations
Yinhua Fund production and
October 10th , Telephone activities of
Benxi Institution Management operation and
2023 communication Bengang Steel
Co., Ltd. -Hua industry
Plates Co., Ltd.
Qiangqiang; situation
on October
UBS SDIC Fund
10th , 2023
Management
Co., Ltd. -
Huang
Zhicheng;
Huachuang
43
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Securities Co.,
Ltd. -Ma Ye
44
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Section IV. CORPORATE GOVERNANCE
I. Basic situation of corporate governance
During the reporting period, the Company has been following the laws, regulations and documents such as the Company Law,
Securities Law, Governance Guidelines for Listed Companies, Guidelines for the Normative Operation of Listed Companies on the
Shenzhen Stock Exchange and Articles of Association. Based on the actual situation of the Company, the Company has been
continuously improving the corporate governance structure and internal control system of the Company, improving the governance
level, and promoting the Company's standardized operation. As of the end of the reporting period, the actual situation of corporate
governance meets the requirements of the regulatory documents related to the governance of listed companies.
1. Shareholders and Shareholders' General Meeting: The Company has formulated the Rules of Procedures for General Meetings of
Shareholders in strict accordance with the Company Law, Rules for Shareholders' General Meetings of Listed Companies and the
Company Articles of Association to ensure the exercise of the rights of the Company's shareholders and the standard operation of
the shareholders' meeting. The Company's previous shareholder meetings have provided two attendance channels, on-site voting
and online voting, to facilitate shareholders. Involving major issues that affect the interests of small and medium investors, the
Company counts the votes of small and medium investors individually and discloses them in a timely manner to ensure that all
shareholders enjoy equal status and fully exercise their rights. And by hiring lawyers to witness and ensure the legal compliance of
the convening, convening and voting procedures of the meeting, the legitimate rights and interests of the company and shareholders
have been safeguarded.
2. Directors and the Board of Directors: the company's Board of Directors has clear responsibilities, and the Company's directors
exercise their powers in strict accordance with the Articles of Association, Rules of Procedures of the Company's Board of Directors,
Company Independent Directors Work System and other related systems, perform their duties with integrity and diligence, and
safeguard the legitimate rights and interests of the Company and shareholders. The Company's Board of Directors has four special
committees, namely audit, strategy, nomination, remuneration and assessment, each of which performs its own responsibilities and
functions, and can carry out its work in accordance with the rules of procedure of each special committee. During the reporting
period, the convening and holding procedures of the company's Board of Directors complied with the Company Law, Articles of
Association and Rules of Procedure of the Board of Directors and other relevant laws and regulations.
3. Supervisors and board of supervisors: The Company's supervisors can earnestly perform their duties, independently and effectively
perform supervision and inspection functions. The Company's supervisors attend shareholders' meetings, attend board meetings as
non-voting delegates, regularly inspect the Company's legal operations and financial conditions, and issue opinions from the board
of supervisors. Supervise the Company's finances, the performance of the company's directors and senior management personnel,
and the capital exchanges with related parties, so as to safeguard the legal rights and interests of the company and shareholders.
The number and structure of the board of supervisors meet the requirements of laws and regulations, and its convening and
convening are strictly implemented in accordance with the Articles of Association and Rules of Procedure of the Board of Supervisors
to ensure that the board of supervisors effectively performs its duties.
4. Controlling shareholders and the Company: The Company has independent and complete business and independent management
capabilities, and is independent of the controlling shareholders and actual controllers in terms of business, personnel, assets,
institutions, and finances; The Company's Board of Directors, board of supervisors and other internal institutions operate
independently; The Company's major decisions are made by the Board of Directors or the general meeting of shareholders in
accordance with the law. Controlling shareholders and actual controllers can strictly regulate their own behavior. There is no direct
or indirect intervention in the Company's decision-making and production and operation activities beyond the general meeting of
shareholders, nor does it harm the interests of the Company and other shareholders.
45
Bengang Steel Plates Co., Ltd. 2023 Annual Report
5. Information disclosure and transparency: The Company strictly complies with the requirements of the Shenzhen Stock Exchange
Stock Listing Rules and the Information Disclosure Management System and other requirements, truthful, accurate, and complete,
without false records, misleading statements or major omissions in performing information disclosure obligation, China Securities
Journal, Securities Times and www.cninfo.com.cn are the designated media for Company information disclosure. The Company
publishes regular reports and temporary announcements through the above-mentioned information disclosure media to ensure that
all shareholders of the Company can obtain information with equal opportunities.
6. Investor relationship management: The Company continues to strengthen communication with investors to deepen investors'
understanding and recognition of the Company. The Company appoints the secretary of the Board of Directors as the person in
charge of investor relations management, and the office of the Board of Directors is the organization that undertakes the daily work
of investor relations management. The Company makes full use of on-site meetings, dedicated telephone calls, investor interaction
platforms and other methods to communicate with the company's shareholders, listens carefully to the opinions and suggestions of
investors on the Company's strategic development and production and operation, and has established a good communication
mechanism with investors, which enhances investors' understanding and investment confidence in the Company.
Whether there exists any difference in compliance with corporate governance, PRC Company Law and relevant provisions of CSRC
□Yes No
There exists no difference in compliance with corporate governance, PRC Company Law and relevant provisions of CSRC.
II. Explanation on structural independence of the Company on business, personnel, assets,
organization and finance from the controlling shareholder and actual controller
The Company is separated from the controlling shareholder in aspects of business, personnel, assets, organization and finance, etc.
and has its own independent and complete business operation.
1. In business operation: The Company has its own production and business planning, financial affairs check and calculate, labor and
personnel, raw material supplies and products selling business system independently and completely.
2. In personnel: The Company and controlling shareholder are separate in such aspects as labor, personnel and salary management.
Such senior executives as the general manager, vice general manager, secretary of the Board of Directors, etc. receive a salary from
the Company, and none of them holds an important position in the shareholders' entity other than director.
3. In Asset: The Company and controlling shareholder have a clear ownership relationship. The Company has its own independent
purchase, production, and marketing system.
4. In organization: The internal operations of the Company are independent; the organization structure and working function are
totally independent.
5. In finance: The Company has an independent financial management department, the accounting and financial management system
that are complete and operated independently, and has a bank account and pays taxes independently.
III. Competition situations of the industry
Applicable □Not applicable
Type of
affiliation with Company Progress and
Question type Company name Cause Solution
listed nature follow-up plans
companies
Industry Controlling Ansteel Group Caused by Ansteel Group The Company
Other
competition shareholder Co., Ltd. Ansteel promises that disclosed that
46
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Group’s within five the Plan for
reorganization years from the Major Asset
of Benxi Iron date of Replacement
and Steel issuance of its and Related
Group Co., Ltd. commitment Party
letter, it will Transactions on
strive to use a June 21st , 2023
shorter time to and planned to
steadily carry out asset
promote replacement
relevant with Benxi Iron
business and Steel
integration to Company. At
solve the present, the
problem of Company is
peer further
competition in demonstrating,
accordance communicating
with the and negotiating
requirements the transaction
of relevant plan. After the
securities relevant
regulatory matters are
authorities, and determined,
on the premise the Company
of complying will convene
with applicable the Board of
laws, Directors again
regulations and for
relevant deliberation.
regulatory rules
at that time,
comprehensive
ly use various
methods such
as asset
restructuring,
business
adjustment and
entrusted
management
IV. Annual general meeting and extraordinary shareholders’ meetings in the reporting period
1. Annual general meeting
Investor Index of information
Sessions Type Meeting Date Date of disclosure
participation ratio disclosure
Announcement of
First Extraordinary
Resolutions of the
Shareholders Extraordinary
76.81% March 16th , 2023 March 17th , 2023 First Extraordinary
General Meeting of General Meeting
General Meeting of
2023
Shareholders of 2023
Annual Shareholders Annual General Announcement of
76.73% April 27th , 2023 April 28th , 2023
General Meeting of Meeting Resolutions of the
47
Bengang Steel Plates Co., Ltd. 2023 Annual Report
2022 Annual General
Meeting of
Shareholders of 2022
Announcement of
Second Extraordinary
Resolutions of the
Shareholders Extraordinary
76.74% May 18th , 2023 May 19th , 2023 Second Extraordinary
General Meeting of General Meeting
General Meeting of
2023
Shareholders of 2023
Announcement of
Third Extraordinary
Resolutions of the
Shareholders Extraordinary
76.88% August 21st , 2023 August 22nd , 2023 Third Extraordinary
General Meeting of General Meeting
General Meeting of
2023
Shareholders of 2023
Announcement of
Fourth Extraordinary
Resolutions of the
Shareholders Extraordinary December 18th , December 19th ,
77.68% Fourth Extraordinary
General Meeting of General Meeting 2023 2023
General Meeting of
2023
Shareholders of 2023
2. Request for an extraordinary general meeting by preferred stockholders whose voting rights restored
□Applicable Not applicable
V. Status of directors, supervisors, senior executives and employees
1. Basic situation
Numb Numb
Numb Numb
er of er of Other Reaso
er of er of
shares additio chang ns for
shares shares
Startin held at nal es in chang
Expiry reduce held at
g date the shares additio e in
Gende Positio Office date of d the
Name Age of beginn held ns and share
r n status office during end of
office ing of during deletio increas
term the the
term the the ns e or
period period
period period (share decrea
(share (share
(share (share s) se
s) s)
s) s)
March April
Chairm In
Li Yan Male 41 16th , 26th ,
an office
2023 2025
Direct
or,
Deput
Huang May April
y In
Zuowe Male 53 18th , 26th ,
Gener office
i 2023 2025
al
Manag
er
Octob
April
Quan Direct In er
Male 46 26th ,
Xihong or office 19th ,
2025
2023
Wang Direct In March April
Male 54
Dongh or office 16th , 26th ,
48
Bengang Steel Plates Co., Ltd. 2023 Annual Report
ui 2023 2025
July April
Tang Direct In
Male 51 22nd , 26th ,
Yaowu or office
2022 2025
Decem
April
Direct In ber
Jin Ge Male 55 26th ,
or office 18th ,
2025
2023
Indepe
May April
Zhang Femal ndent In
68 16th , 26th ,
Suxun e Direct office
2019 2025
or
Indepe
May April
Yuan ndent In
Male 42 20th , 26th ,
Zhizhu Direct office
2020 2025
or
Indepe
May April
Zhong Femal ndent In
67 27th , 26th ,
Tianli e Direct office
2021 2025
or
Chairm
an of
Lu July April
the In
Xuezh Male 43 18th , 26th ,
Superv office
u 2023 2025
isory
Board
Decem
April
Lu Superv In ber
Male 48 26th ,
Weijun isor office 7th ,
2025
2021
Octob
April
Zhang Superv In er
Male 54 26th ,
Weian isor office 19th ,
2025
2023
Octob
April
Guo Superv In er
Male 45 26th ,
Peng isor office 19th ,
2025
2023
Octob
Jiang April
Superv In er
Zheny Male 45 26th ,
isor office 19th ,
u 2025
2023
Deput
y
Liu July April
Gener In
Yanso Male 52 18th , 26th ,
al office
ng 2023 2025
Manag
er
Deput
y
Liu August April
Gener In
Zhang Male 49 17th , 26th ,
al office
man 2022 2025
Manag
er
Deput August April
Guo In
Male 54 y 17th , 26th ,
Yuwei office
Gener 2022 2025
49
Bengang Steel Plates Co., Ltd. 2023 Annual Report
al
Manag
er
Chief
Accou
ntant,
Secret Februa
Zheng April
ary of In ry
Zhengl Male 47 26th ,
the office 28th ,
i 2025
Board 2023
of
Direct
ors
Decem Februa
Huo Chairm Leave ber ry
Male 50
Gang an office 7th , 28th ,
2021 2023
Direct
or,
Deput Nove
April
Wang y Leave mber
Male 49 27th ,
Shiyou Gener office 18th ,
2023
al 2021
Manag
er
Decem Octob
Sun Direct Leave ber er
Male 40
Zhen or office 27th , 19th ,
2022 2023
Februa
May
Han Femal Direct Leave ry
54 27th ,
Mei e or office 28th ,
2021
2023
Chairm
an of
the May July
Cheng Leave
Male 60 Superv 27th , 18th ,
Bing office
isory 2021 2023
Commi
ttee
July April
Bai Femal Superv Leave
53 22nd , 27th ,
Yufei e isor office
2022 2023
Octob
Zhang Januar
Superv Leave er
Yanlon Male 46 y 26th ,
isor office 19th ,
g 2014
2023
Octob
Zhao June
Superv Leave er
Xingta Male 51 26th ,
isor office 19th ,
o 2019
2023
Deput
July
y Nove
18th ,
Jing Gener Leave mber
Male 53 2023
Tao al office 18th ,
Manag 2021
er
50
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Secret
ary of
the
Februa
Board
ry
of April
Jiang Femal Leave 28th ,
52 Direct 26th ,
Xiaoyu e office 2023
ors, 2022
Head
of
Financ
e
Total -- -- -- -- -- -- 0 0 0 0 0 --
During the reporting period, is there any resignation of directors and supervisors and dismissal of senior management personnel in
the reporting period
Yes □No
1. Mr. Huo Gang, former Chairman of the Company, resigned during the reporting period due to job changes during his term of office;
2. Mr. Wang Shiyou, former Director and Deputy General Manager of the Company resigned during the reporting period due to a
change in his employment during his term of office;
3. Mr. Sun Zhen, a former employee Director of the Company, resigned during the reporting period due to job changes during his
term of office.
4. Ms. Han Mei, a former Director of the Company, resigned during the reporting period due to job changes during her term of office.
5. Mr. Liu Zhangman, former Chairman of the Supervisory Committee of the Company, resigned during the reporting period due to a
change in his employment during his term of office and is still in the General Manager position;
6. Mr. Cheng Bin, the former Supervisor of the Company, resigned during the reporting period due to changes in his work during his
term of office.
7. Ms. Bai Yufei, the former Supervisor of the Company, resigned during the reporting period due to changes in her work during her
term of office.
8. Mr. Zhang Yanlong, former employee Supervisor of the Company, resigned during the reporting period due to job changes during
his term of office;
9. Mr. Zhao Xingtao, former employee Supervisor of the Company, resigned during the reporting period due to job changes during
his term of office;
10. Mr. Jing Tao, former Deputy General Manager of the Company resigned during the reporting period due to a change in his
employment during his term of office.
11. Ms. Jiang Xiaoyu, the former Secretary of the Board of Directors and Head of Finance resigned during the reporting period due
to changes in her work during her term of office.
Changes in directors, supervisors and senior management of the Company
Applicable □Not applicable
Name Position Office status Date Reason
Huo Gang Chairman Leave office February 28th , 2023 Voluntary turnover
Han Mei Director Leave office February 28th , 2023 Voluntary turnover
Wang Shiyou Director, Deputy Leave office April 27th , 2023 Voluntary turnover
51
Bengang Steel Plates Co., Ltd. 2023 Annual Report
General Manager
Sun Zhen Director Leave office October 19th , 2023 Voluntary turnover
Chairman of the
Cheng Bin Supervisory Leave office July 18th, 2023 Voluntary turnover
Committee
Bai Yufei Supervisor Leave office April 27th , 2023 Voluntary turnover
Zhang Yanlong Supervisor Leave office October 19th , 2023 Voluntary turnover
Zhao Xingtao Supervisor Leave office October 19th , 2023 Voluntary turnover
Liu Zhangman Director Appoint and dismiss December 1st , 2023 Voluntary turnover
Deputy General Termination of
Jing Tao July 18th , 2023 Job change
Manager employment
Head of Finance,
Termination of
Jiang Xiaoyu Secretary of the Board February 28th , 2023 Job change
employment
of Directors
Li Yan Chairman Elected March 16th , 2023 Elected
Director, Chief General
Huang Zuowei Elected May 18th , 2023 Elected
Manager
Quan Xihong Director Elected October 19th , 2023 Elected
Wang Donghui Director Elected March 16th , 2023 Elected
Jin Ge Director Elected December 18th , 2023 Elected
Chairman of the
Lu Xuezhu Supervisory Elected July 18th , 2023 Elected
Committee
Zhang Weian Supervisor Elected October 19th , 2023 Elected
Guo Peng Supervisor Elected October 19th , 2023 Elected
Jiang Zhenyu Supervisor Elected October 19th , 2023 Elected
Deputy General
Liu Yansong Employed July 18th , 2023 Employed
Manager
Chief Accountant,
Zheng Zhengli Secretary of the Board Employed February 28th , 2023 Employed
of Directors
2. Post holding
Professional background, major work experience and current major responsibilities in the Company of the current directors,
supervisors and senior management
Li Yan, male, 41 years old, PhD. Economic, senior engineer. He is currently the Party Secretary and Chairman of Benxi Steel Plate Co.,
Ltd.; Chairman of Bengang Puxiang Cold Rolled Sheet Co., Ltd. He used to be the deputy director of the plate equipment department
of Benxi Steel; Director of Benxi Steel Plate Inspection and Testing Center; Party Secretary and Director of Benxi Iron and Steel Cold
Rolling General Factory, General Manager of Bengang Puxiang Company; He is now deputy head,director and deputy general manager
of the preparatory group of Beiying Party Committee of Benxi Iron and Steel Co., Ltd.; Director, General Manager and Deputy
Secretary of Party Committee of Beiying, Benxi Iron and Steel Co.Ltd.
Huang Zuo, male, 53 years old, master of engineering, senior engineer. He is currently the deputy secretary of the Party Committee,
director and deputy general manager of Benxi Iron and Steel Plate Co., Ltd. (temporarily responsible for the overall work of production
and operation). He used to be the Minister of Energy and Environmental Protection of Benxi Steel Plate Co., Ltd.; General Manager
of Planning and Science Department of Benxi Iron and Steel Group Co., Director of Benxi Beiying Steel (Group) Co., Ltd.; Director of
Benxi Iron and Steel (Group) Mining Co., Ltd.
Quan Xihong, male, 46 years old, bachelor's degree, senior engineer. He is currently deputy secretary of the Party Committee,
employee director, secretary of the Discipline Inspection Commission, chairman of the trade union, general counsel, chief compliance
officer and secretary of the Party Committee of Benxi Steel Plate Co., Ltd.. He used to be deputy director of the Comprehensive
52
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Supervision Department of the Discipline Inspection Commission (Supervision Department) of Benxi Iron and Steel Group Company,
director of the Supervision and Management Office of Discipline Inspection and Supervision Cadres, and director of the Discipline
Inspection and Supervision Office; Manager of Audit Department, Deputy Secretary of Discipline Inspection Commission and Director
of Party and Government Supervision Office of Beiying Company of Benxi Iron and Steel Co.
Wang Donghui, male, 54 years old, bachelor of economics, senior accountant. He is currently a director of Bengang Steel Plates Co.,
Ltd.; General Manager of Capital Finance Department of Bensteel Group Co., Ltd. He used to be the chief accountant, finance
department minister and operation improvement department minister of Bensteel Group Co., Ltd.; Vice Minister of Finance
Department of Bensteel Group Co., Ltd. and Chief Accountant of Beiying Company; Minister of Finance Department of Bensteel
Group Co., Ltd. ; Director and chief accountant of Benxi Steel Plate Company; Chief accountant of Benxi Iron and Steel Mining Co.,
Ltd.
Tang Yaowu, male, 51 years old, bachelor degree, engineer. He is currently a director of Bengang Steel Plates Co., Ltd.; Full-time
director and supervisor of Bengang Group Company Office; Director of Hengtong Company; Director of Stainless Steel
Company; Director of machinery manufacturing company. He used to be the deputy director of the rolling mill of Beiying Company
of Benxi Iron and Steel Co.; Executive Deputy Director of Rolling Plant of Beiying Company of Benxi Iron and Steel Co., Ltd.; Director
of Rolling Mill of Beiying Company of Benxi Steel; Assistant General Manager and Minister of Production Department of Beiying
Company of Benxi Steel; Chief Engineer of Beiying Company of Benxi Steel; Chief Engineer and Director of Rolling Mill of Beiying
Company of Bensteel; Deputy General Manager and Chief Engineer of Bensteel Group Co., Ltd. Beiying Company; Vice Minister of
Energy and Environmental Protection Department of Bengang Steel Plates Co., Ltd.
Jin Ge, male, 55 years old, graduate degree, political engineer. He is currently a director of Bengang Steel Plates Co., Ltd.; Director of
Liaoning Hengtong Metallurgical Equipment Manufacturing Co., Ltd.; Director of Bensteel Group Thermal Development Co., Ltd.;
Supervisor of Bensteel Group Construction Co., Ltd. He used to be the vice chairman of the trade union of Beiying Company of
Bensteel Group; Director of Comprehensive Finance Unit of Trade Union of Bensteel Group Co., Ltd..
Zhang Suxun, female, 68 years old, university degree, professor. He is currently an independent director of Benxi Steel Plate Co., Ltd..
He used to be a teacher of Liaoning University Business School.
Yuan Zhizhu, male, 42 years old, Ph.D., associate professor of accounting at Northeastern University, master tutor, non-practicing
member of Chinese certified public accountant. He is currently independent director of Bensteel Group Co., Ltd.; Head of the
Accounting Department, School of Business Administration, Northeastern University, and served as the director of Liaoning
Accounting and Abacus Mental Arithmetic Society and Liaoning Auditing Society. He used to be a lecturer in the School of Business
Administration of Northeastern University.
Zhong Tianli, female, 67 years old, is a professor (doctoral supervisor) at Northeastern University. He is currently an independent
director of Benxi Steel Plate Co., Ltd.; Professor, Department of Accounting, School of Business Administration, Northeastern
University. He used to be the vice president of the School of Business Administration of Northeastern University; Dean of Basic
College of Northeastern University and Director of Institute of Financial Management of School of Business and Technology.
Introduction of Supervisory Board Members
Lu Xuezhu, male, 43 years old, bachelor's degree, senior economist, is currently the chairman of the Board of Supervisors of Benxi
Iron and Steel Plate Co., Ltd., the general manager of the Audit Department of Benxi Iron and Steel Group Co., Ltd., the director of
Benxi Iron and Steel (Group) Mining Co., Ltd. and the supervisor of Benxi Iron and Steel Plate Co., Ltd.. He used to be the deputy
director of the Economic Responsibility Audit Department of the Audit Department of Ansteel Group; Deputy Director of the
Management Audit Department of the Audit Department of Ansteel Group; Director of Operation and Management Audit
Department of Audit Department of Ansteel Group.
53
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Lu Weijun, male, 48 years old, university degree, senior accountant. He is currently a supervisor of Benxi Steel Plate Company; Deputy
Manager of Audit Department of Benxi Iron and Steel Group Co., Ltd. He used to be the head of the Cost Section of the Finance
Department of Benxi Iron and Steel (Group) Construction Co., Ltd.; Chief Business Engineer of Audit Department of Benxi Steel Plate
Co., Ltd.; Chief Business Engineer of Audit Department of Benxi Iron and Steel Group Company. Deputy Manager of Finance
Department of Benxi Steel Plate Company.
Zhang Weian, male, 54 years old, university degree, senior accountant, is currently the supervisor and audit manager of Benxi Steel
Plate Co., Ltd.; Supervisor of Benxi Steel Pohang Cold Rolled Sheet Co., Ltd.; Supervisor of Dalian Benruitong Automotive Materials
Technology Co., Ltd.; Supervisor of Benxi Steel Baojin (Shenyang) Automobile New Materials Technology Co., Ltd.. He used to be the
deputy director of the finance department of Benxi Iron and Steel Beiying Company; Deputy Director of Finance Department of Benxi
Iron and Steel Group Company.
Guo Peng, male, 45 years old, university degree, assistant engineer and senior technician, is currently a supervisor of Benxi Iron and
Steel Plate Co., Ltd., and a special technician of rolling workers in the third hot rolling production operation area of hot continuous
rolling plant. He used to be the production shift supervisor of the third hot rolling production operation area of Benxi Iron and Steel
Plate Hot Continuous Rolling Plant; Chief operator and first-class technician of rolling worker in Benxi Iron and Steel Hot Continuous
Rolling Plant.
Jiang Zhenyu, male, 45 years old, university degree, third-level writer of literary creation, is currently a supervisor of Benxi Iron and
Steel Plate Co., Ltd., deputy director of the Party-mass Work Department (Party Committee Organization Department, Human
Resources Department, Party Committee Propaganda Department, United Front Work Department, Trade Union, Youth League
Committee, Party Committee of the government), and vice chairman of the trade union; Deputy Secretary of Party Committee,
Secretary of Discipline Inspection Commission and Chairman of Trade Union of Benxi Steel Plate Co., Ltd.. He used to be the chief
business engineer of the trade union of Benxi Iron and Steel Group Co. Deputy Director of Benxi Iron and Steel Reporter Station,
Ansteel News Media Center.
Profile of non-director senior management:
Liu Yansong, male, 52 years old, Master of Engineering, is a senior engineer. He is currently the deputy general manager of Benxi
Steel Plate Co., Ltd.. He used to be the director, deputy manager and director of the Export Department of Benxi Iron and Steel
International Trade Company; Party Secretary and Trade Union Chairman of Cold Rolling Plant of Benxi Steel Plate Company; Director
of Rolling Plant of Beiying Company of Benxi Steel; Deputy General Manager of Beiying Company of Benxi Iron and Steel Co.
Guo Yuwei, male, 54 years old, Master of Engineering, Senior Engineer. He is currently the deputy general manager of Benxi Steel
Plate Co., Ltd.. He used to be assistant to the director of the ironmaking plant of Benxi Steel Plate Company and deputy director of
the ironmaking plant; Party Secretary and Trade Union Chairman of Ironmaking Plant of Benxi Steel Plate Company, Deputy Director
of Ironmaking Plant; Member of the preparatory group of the Party Committee of Beiying Company, deputy general manager,
director of Benxi Iron and Steel Construction Company; Party Secretary and Deputy Director of Ironmaking General Plant of Benxi
Steel Plate Company.
Liu Zhangman, male, 49 years old, college degree, senior engineer. He is currently the deputy general manager of Benxi Steel Plate
Co., Ltd.. He used to be deputy director of Beiying No.2 Steelmaking Plant and deputy director of Beiying Steelmaking Plant; Assistant
to Executive Deputy General Manager of Beiying Company, Chairman of Association for Science and Technology, Director of
Technology Center; Chief Engineer of Beiying Company and Chairman of Association for Science and Technology, Minister of New
Product Department, Manager of Bar and Wire Development Project Department, Director of Bar and Wire Research Institute;
Deputy General Manager and Director of Benxi Iron and Steel Beiying Company; Vice Minister of Manufacturing Department of Benxi
Steel Plate Company; Deputy General Manager of Operation Management Department of Benxi Iron and Steel Group Company;
Director of Benxi Steel Plate Co., Ltd.
54
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Zheng Zhengli, male, 47 years old, MBA, senior accountant, is currently the chief accountant and secretary of the board of directors
of Benxi Steel Plate Company. He used to be the deputy director of the finance department of Benxi Steel Plate Company; Director
of Accounting and Taxation of Finance Department of Benxi Steel Plate Company; Party Committee member and assistant to general
manager of Beiying Company of Benxi Iron and Steel Co.Ltd.
Positions in shareholder units
Applicable □Not applicable
Does he /she
receive
Names of the Names of the Titles engaged in Starting date of Expiry date of
remuneration or
persons in office shareholders the shareholders office term office term
allowance from
the shareholder
General Manager
Bengang Group
Wang Donghui of Capital Financial February 9th , 2023 Yes
Co., Ltd.
Department
Bengang Group
Tang Yaowu Full-time Director March 24th , 2022 Yes
Co., Ltd.
Bengang Group December 10th , December 27th ,
Jin Ge Full-time Director Yes
Co., Ltd. 2021 2023
General Manager
Bengang Group
Lu Xuezhu of Audit April 12th , 2023 Yes
Co., Ltd.
Department
Deputy General
Bengang Group
Lu Weijun Manager of Audit June 6th , 2023 Yes
Co., Ltd.
Department
Description of the
position in the None
shareholder
Posts holding in other companies
Does he /she
receive
Names of the Names of the Titles engaged in Starting date of Expiry date of
remuneration or
persons in office other companies other companies office term office term
allowance from
the shareholder
Benxi Steel Posco
Li Yan Cold Rolled Sheet Chairman March 2nd, 2023 No
Co., Ltd.
Benxi Steel Baojin
(Shenyang)
Automobile New September 21st ,
Liu Yansong Chairman No
Material 2023
Technology Co.,
Ltd.
Dalian Benruitong
AUTO MATERIALS
Liu Yansong Chairman August 12th , 2023 No
Technology Co.,
Ltd.
Dalian Benruitong
AUTO MATERIALS
Zhang Wei’an Supervisor August 12th , 2023 No
Technology Co.,
Ltd.
Benxi Steel Posco
Zhang Wei’an Supervisor July 10th , 2023 No
Cold Rolled Sheet
55
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Co., Ltd.
Benxi Steel Baojin
(Shenyang)
Automobile New September 21st ,
Zhang Wei’an Supervisor No
Material 2023
Technology Co.,
Ltd.
School of Business
Administration
Zhong Tianli Professor October 1st , 1982 Yes
Northeastern
University
School of Business
Dean of
Administration
Yuan Zhizhu Department of July 13th , 2009 Yes
Northeastern
Accounting
University
Shenyang Machine Independent
Yuan Zhizhu May 28th , 2021 Yes
Tool Co., Ltd. Director
Description of the
position in other None
companies
Applicable □Not applicable
Punishment by the security’s regulatory authorities in the last three years
□Applicable Not applicable
3. Remuneration to Directors, Supervisors and Senior Executives
Decision-making procedures, basis of recognition and actual payment of the remuneration to directors, supervisors and senior
executives
Decision-making procedures
1. The Remuneration and Assessment Committee will produce a plan or proposal, which will be implemented upon approval of the
Board or the Shareholders’ Meeting;
2. According to performance assessment criteria and procedures, the Remuneration and Assessment Committee undertakes
assessments on the Directors and Senior Executives;
3. Remuneration amounts and ways of rewards will be proposed according to the assessment and remuneration policies for Directors,
Supervisors and Senior Executives, and adopted by voting;
4. To be implemented upon approval of the Board.
Basis of recognition
The remuneration scheme for a particular position is recognized based on the range of responsibilities, and duties. Remunerations
are distributed based on the assessment results and remuneration policies.
Actual payment of the remuneration
Remuneration is paid on monthly basis according to the remuneration allocation policies. Remuneration of Directors, Supervisors
and Senior Executives during the reporting period
Unit: RMB 10,000
Whether
Total receive
remuneration remuneration
Name Gender Age Position Office status
received from in the
the shareholder Company's
related parties
56
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Li Yan Male 41 Chairman In office 1 No
Director,
Huang Zuowei Male 53 Deputy General In office 1 No
Manager
Quan Xihong Male 46 Director In office 1 No
Wang Donghui Male 54 Director In office 1 Yes
Tang Yaowu Male 51 Director In office 1 Yes
Jin Ge Male 55 Director In office 1 Yes
Independent
Zhang Suxu Female 68 In office 1 No
Director
Independent
Yuan Zhizhu Male 42 In office 1 No
Director
Independent
Zhong Tianli Female 67 In office 1 No
Director
Chairman of
Lu Xuezhu Male 43 the Supervisory In office 1 Yes
Committee
Lu Weijun Male 48 Supervisor In office 1 Yes
Zhang Weian Male 54 Supervisor In office 1 No
Guo Peng Male 45 Supervisor In office 1 No
Jiang Zhenyu Male 45 Supervisor In office 1 No
Deputy General
Liu Yansong Male 52 In office 1 No
Manager
Deputy General
Liu Zhangman Male 49 In office 1 No
Manager
Deputy General
Guo Yuwei Male 54 In office 1 No
Manager
Chief
Accountant,
Zheng Zhengli Male 47 Secretary of In office 1 No
the Board of
Directors
Huo Gang Male 50 Chairman Leave office 1 Yes
Director,
Wang Shiyou Male 49 Deputy General Leave office 1 Yes
Manager
Sun Zhen Male 40 Director Leave office 1 Yes
Han Mei Female 54 Director Leave office 1 Yes
Chairman of
Cheng Bin Male 60 the Supervisory Leave office 1 Yes
Committee
Bai Yufei Female 53 Supervisor Leave office 1 Yes
Zhang Yanlong Male 46 Supervisor Leave office 1 No
Zhao Xingtao Male 51 Supervisor Leave office 1 No
Deputy General
Jing Tao Male 53 Leave office 1 Yes
Manager
Head of
Finance,
Jiang Xiaoyu Female 51 Secretary of Leave office 1 Yes
the Board of
Directors
Total -- -- -- -- 28 --
Illustration of other conditions
Applicable □Not applicable
57
Bengang Steel Plates Co., Ltd. 2023 Annual Report
VI. Duty fulfillment of directors during the reporting period
1. The situation of the Board of Directors during the reporting period
Index of information
Sessions Meeting Date Date of disclosure
disclosure
Announcement on
9th Ninth plenary session February 28th , 2023 March 1st , 2023 Resolutions of 9th Ninth
plenary session
Announcement on
10th Ninth plenary session March 16th , 2023 March 17th , 2023 Resolutions of 10th Ninth
plenary session
Announcement on
11th Ninth plenary session March 28th , 2023 March 30th , 2023 Resolutions of 11th Ninth
plenary session
Announcement on
12th Ninth plenary session April 27th , 2023 April 28th , 2023 Resolutions of 12th Ninth
plenary session
Announcement on
13th Ninth plenary session April 28th , 2023 Resolutions of 13th Ninth
plenary session
Announcement on
14th Ninth plenary session May 30th , 2023 May 31st , 2023 Resolutions of 14th Ninth
plenary session
Announcement on
15th Ninth plenary session June 12th , 2023 June 13th , 2023 Resolutions of 15th Ninth
plenary session
Announcement on
16th Ninth plenary session June 20th , 2023 June 21st , 2023 Resolutions of 16th Ninth
plenary session
Announcement on
17th Ninth plenary session July 18th , 2023 July 19th , 2023 Resolutions of 17th Ninth
plenary session
Announcement on
18th Ninth plenary session August 4th , 2023 August 5th , 2023 Resolutions of 18th Ninth
plenary session
Announcement on
19th Ninth plenary session August 29th , 2023 August 31st , 2023 Resolutions of 19th Ninth
plenary session
Announcement on
20th Ninth plenary session September 9th , 2023 September 12th , 2023 Resolutions of 20th Ninth
plenary session
Announcement on
21th Ninth plenary session October 30th , 2023 October 31st , 2023 Resolutions of 21th Ninth
plenary session
Announcement on
22th Ninth plenary session December 1st , 2023 December 2nd , 2023 Resolutions of 22th Ninth
plenary session
Announcement on
23th Ninth plenary session December 25th , 2023 December 26th , 2023 Resolutions of 23th Ninth
plenary session
2. The situation of directors attending the BOD and shareholders meeting
Attendance of Directors at Board of Directors and General Meetings of Shareholders
58
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Number of
Failure to
Board
Number of Number of personally
meetings Number of Number of
meetings attendances attend board
Director necessary to spot Number of general
attended by by meetings
name be attended attendance absences meetings to
Communicati representativ successively
during the s be attended
on e twice
reporting
(Yes/No)
period
Huo Gang 1 1 0 0 No 0
Wang Shiyou 4 3 1 0 0 No 2
Sun Zhen 12 4 8 0 0 No 4
Han Mei 1 1 0 0 No 0
Liu
14 6 8 0 0 No 4
Zhangman
Tang Yaowu 15 6 9 0 0 No 5
Zhang Suxun 15 6 9 0 0 No 5
Yuan Zhizhu 15 6 9 0 0 No 5
Zhong Tianli 15 6 9 0 0 No 5
Li Yan 14 6 8 0 0 No 5
Huang
10 3 7 0 0 No 3
Zuowei
Quan Xihong 3 2 1 0 0 No 1
Wang
14 6 8 0 0 No 5
Donghui
Jin Ge 1 1 0 0 No 1
Explanation of two consecutive absences from attending the Board of Directors in person
None
3. Objections of directors on relevant issues
Objections of independent directors on some relevant issues
□Yes No
Independent directors proposed no objection against the relevant matters during the reporting period.
4. Other notes to duty fulfillment of directors
Whether any director’s advice to the Company was accepted
Yes □No
Illustration of acceptance of or failure to accept a director’s advice to the Company
Directors have not made recommendations during the reporting period.
VII. Duty fulfillment of the special committees under the board during the reporting period
Important Specific
Number of comments Other circumstance
Meeting
Committees Membership meetings Meeting date and performance s of the
content
held suggestions of duties objection (if
raised any)
Committee Zhang Xuxun, March 17th , 1. Annual Not
7 Agree No
of Audit and Yuan Zhizhu, 2023 report and applicable
59
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Risk Wang summary for
Management Donghui 2022; 2.
Financial
final
accounts
report for
2022; 3.
Profit
distribution
plan for
2022; 4.
Proposal on
the proposed
change of
accounting
firm; 5.
Evaluation
Report on
Internal
Control of
the Company
in 2022; 6.
Proposal on
Provision for
Impairment
of Assets; 7.
Special
Report on
the Storage
and Use of
Raised Funds
in 2022;
Report for
April 21st , the first Not
Agree No
2023 quarter of applicable
2023
1. Report on
Compliance
Work in
2022; 2.
Work Report
April 23rd , of Internal Not
Agree No
2023 Control applicable
System in
2022; 3. 2023
Major Risk
Assessment
Report
Proposal on
Temporary
Replenishme
July 12th , Not
nt of Working Agree No
2023 applicable
Capital with
Idle Raised
Funds
1. Semi-
August 18th , Not
annual Agree No
2023 applicable
report for
60
Bengang Steel Plates Co., Ltd. 2023 Annual Report
2023; 2. Risk
Assessment
Report of
Ansteel
Group
Finance Co.,
Ltd.; 3.
Report on
the use of
funds raised
in the semi-
annual
period of
2020; 4.
Proposal on
Changes in
Accounting
Policies
Third Quarter
October Not
Report of Agree No
20th , 2023 applicable
2023
1. Proposal
on the
Estimation of
Daily Related
Party
Transactions
in 2024; 2.
Proposal on
Closing the
November Project of the Not
Agree No
20th , 2023 Company's applicable
Non-public
Offering of
Shares and
Permanently
Replenishing
the Working
Capital with
the Balance
Raised Funds
1. Proposal
to nominate
candidates
for director
of the
February Company; 2. Not
Agree No
23rd , 2023 Proposal to applicable
Yuan Zhizhu, appoint
Nominating
Zhang Suxun, 5 senior
Committee
Li Yan management
of the
Company
1. Proposal
to nominate
April 21st , Not
candidates Agree No
2023 applicable
for director
of the
61
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Company; 2.
Proposal to
appoint
senior
management
of the
Company
Proposal on
the
appointment
June 6th , of the Not
Agree No
2023 Secretary of applicable
the Board of
Directors of
the Company
Proposal to
appoint
July 12th , senior Not
Agree No
2023 management applicable
of the
Company
.Proposal to
nominate
November candidates Not
Agree No
20th , 2023 for director applicable
of the
Company
1. 2022
annual
report of the
Board of
March 17th , Not
Directors; 2. Agree No
2023 applicable
2023 annual
investment
framework
plan proposal
Proposal to
Adjust the
May 24th , Not
Company 's Agree No
2023 applicable
organization
al structure
Li Yan, Wang 1. Proposal
Strategy
Donghui, 3 on this major
Committee
Zhong Tianli asset
restructuring
plan of the
Company; 2.
Proposal on
the Plan for
June 11th , Not
Major Asset Agree No
2023 applicable
Replacement
and Related
Party
Transactions
of Benxi Steel
Plate Co., Ltd.
and its
summary; 3.
62
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Proposal on
Signing the
Framework
Agreement
on Major
Asset
Replacement
with
Conditions
and
Effectiveness
between the
Company
and the
Counterparty
1. Proposal
on the
Completion
of Operating
Performance
Indicators of
the
Company's
Management
in 2022; 2.
Proposal on
Salary and Zhong Tianli, Cashing the
April 23rd , Not
Assessment Yuan Zhizhu, 1 Salary of Agree No
2023 applicable
Committee Tang Yaowu Company
Leaders in
2022; 3.
Proposal on
the Setting of
Performance
Evaluation
Indicators of
the
Company's
Management
in 2023
VIII. Duty fulfillment of the supervisory committee
Whether the supervisory board made any objection against the supervision issue during the reporting period
□Yes No
The Supervisory Board made no objection to the supervision issue during the reporting period.
IX. Staff condition
1. Number of staff, professional structure and education level
Number of in-service staff in the parent company 13,687
Number of in-service staff in main subsidiaries 655
63
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Total population of in-service staff 14,342
Total population of staff receiving remuneration in the current
14,342
period
Number of retired staff whose expense was borne by parent
24,466
company and major subsidiary companies
Professional composition
Type of professional composition Population
Production staff 12,029
Sales staff 234
Technician staff 1,217
Financial staff 91
Administrative Staff 771
Total 14,342
Educational degree
Type of educational degree Population
PhD. 9
Postgraduate 304
Undergraduate 3,550
Junior College 5,463
Technical secondary school 417
High School and Technical School 2,954
Middle School and others 1,645
Total 14,342
2. Remuneration policies
The company has established a perfect performance management system, according to the determined annual production and
operation principles, policies and management objectives, to assess the completion of various functional departments and factories
and mines' operation indicators and work tasks, set key performance evaluation indicators, implement monthly evaluation, pay
according to posts, abilities and performance principles, set salaries by posts, change salaries by posts, guide employees to improve
their abilities, establish a salary distribution mechanism that relies on competition for posts and contributions for income, highlight
the assessment of key performance indicators, and truly realize income can increase and decrease. Continue to promote the total
salary contract, guide all units to rationally allocate human resources, optimize the distribution mechanism and improve labor
productivity, and give full play to the incentive and restraint role of salary.
3. Training plan
In 2023, the Company implemented the strategy of "developing enterprises with talents" in depth, focusing on building the new
Benxi Steel into an internationally competitive production base for automotive steel and excellent special steel bars and wires,
focusing on optimizing the education and training system, improving the training evaluation mechanism and improving the training
quality and effect, highlighting the political, systematic, accurate and effective training, continuously improving the political ability,
leadership ability, general ability and professional ability of employees, and striving to create characteristic excellent training
programs, effectively releasing the training effectiveness, and further improving the comprehensive quality of the workforce. The
company completed 15 training programs and 24,172 person-times throughout the year, with the qualified rate of training reaching
95% and the implementation rate of annual training plan reaching 94%. Plan to achieve training objectives in an all-round way.
64
Bengang Steel Plates Co., Ltd. 2023 Annual Report
4. Outsourcing
□Applicable Not applicable
X. Profit distribution or capital reserve conversion
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash dividend policy during
the reporting period
Applicable □Not applicable
Profit distribution plan for FY2023: As audited by BDO China Shu Lun Pan Certified Public Accountants LLP (Special
General Partnership), the net profit attributable to the parent company for the year 2022 was RMB-
1,742,574,163.92, plus the undistributed profit of RMB-720,559,670.73 at the beginning of the year. The balance
of the undistributed profit for the period was RMB -2,463,133,834.65. The profit distribution plan for FY2022 is:
No cash dividend, no bonus shares and no capitalization of capital reserve.
Special description of cash dividend policy
Whether it meets the requirements of the company's articles
Yes
of association or the resolutions of the shareholders meeting:
Whether the dividend standard and ratio are clear: Yes
Whether the relevant decision-making procedures and
Yes
mechanisms are complete:
Whether independent directors have performed their duties
Yes
due diligence and played their due role:
Whether small and medium shareholders have sufficient
opportunities to express their opinions and demands, and
Yes
whether their legitimate rights and interests are fully
protected:
Whether it meets the requirements of the company's articles
Yes
of association or the resolutions of the shareholders meeting:
Whether it meets the requirements of the company's articles
Yes
of association or the resolutions of the shareholders meeting:
Both the Company’s profit and the parent company’s retained earnings are positive however no proposal of cash dividend
distribution was proposed during the reporting period
□Applicable Not applicable
Profit Distribution or Capital Reserve Conversion Proposal in the Reporting Period
□Applicable Not applicable
The Company plans to distribute no cash dividends, no bonus shares and no increase in capital by way of the transfer of public
reserves for the year.
XI. Construction and implementation of internal control system during the reporting period
□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.
65
Bengang Steel Plates Co., Ltd. 2023 Annual Report
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control system
During the reporting period, the Company strictly abides by the Basic Regulations of Internal Control and its supporting guidelines
and other internal control supervision requirements, combined with industry characteristics, business practices and internal control
systems and evaluation methods. These make it possible to constantly improve and refine the internal control management system,
promotes the improvement of the Company 's decision-making efficiency. Meanwhile, the Company provides guarantee for the legal
compliance and asset safety of the Company 's operation and management, and effectively promotes the steady implementation of
the company 's strategy.
The Company has established a sound internal control system, and combined with the actual operation of the timely revision and
improvement, to give full play to its system protection role. During the reporting period, the company formulated 77 systems such
as the Administrative Measures for the performance of Duties of external Directors dispatched by subsidiaries of Bengang Steel and
Iron Sheet Co., Ltd., the Rules for the Security Management of Network and information systems of Bengang Steel and Iron Sheet Co.,
Ltd., and revised 38 systems such as the "Rules for the Management of Environmental Statistics of Bengang Steel and Iron Sheet Co.,
Ltd. and the Accounting Basic Work Standards of Bengang Steel and Iron Sheet Co., Ltd. As of the end of the reporting period, the
Company had 434 effective systems.
2. Material internal control defects found during the reporting period
□Yes No
XIII. Management and control of subsidiaries during the reporting period
Problems
Integration Integration encountered Solutions Solutions Follow-up
Company name
plan progress during implemented progress solutions plan
integration
Zhejiang Jingrui
Steel
Equity transfer Completed N/A N/A N/A N/A
Processing Co.,
Ltd.
XIV. Internal control self-evaluation report or internal control audit report
1. Internal control self-evaluation report
Disclosing date of the internal control
March 30th, 2024
audit report (full text)
Index of the internal control audit report
http://www.cninfo.com.cn
(full text)
Proportion of total assets of subsidiaries
within the scope of the self-evaluation
99.06%
report in total assets of the Company’s
consolidated financial statements
Proportion of operating income of
subsidiaries within the scope of self-
99.98%
evaluation report in operating income of
the Company’s consolidated financial
66
Bengang Steel Plates Co., Ltd. 2023 Annual Report
statements
Standards of defects evaluation
Category Financial report Non-financial report
1. the Company's standards of internal
control defects evaluation in terms of
daily operation: 1) Material defects: have
a material impact on the normal
operation of the Company: affect most of
the Company’s main business types/main
functional areas; have a significant
impact on the overall operation of the
Company which makes it difficult to
recover in the long run. 2) Significant
defects: have a great impact on the
normal operation of the Company: affect
some of the Company's main business
types/main functional areas; have a large
impact on the Company's overall
operation, requiring a great price for the
1. Material defects: fraud of directors, Company to recover in a long period of
supervisors and senior management; the time. 3) General defects: have a
Company corrects its published financial moderate or less impact on the normal
statements; there is a material operation of the Company: affect a
misstatement in the financial certain main business type/main
statements, and the internal control fails functional area or general business
to detect the misstatement during the type/general functional area of the
operation; the corporate audit Company; have a moderate or less
committee and the internal audit impact on the overall operation of the
institution have no effect on the Company, requiring some price for the
supervision of internal control. Company to recover within a certain
Qualitative criteria
2. Significant defects: the seriousness period of time. 2. the Company's
and economic consequences of standards of internal control defects
accounting policies, accounting and evaluation in terms of business
financial reporting are lower than objectives: 1) Material defects: have a
material defects, but there are still significant impact on the Company's
internal control defects that may cause business objectives: have a significant
the Company to deviate from the control impact on any type of budget indicators
objectives. 3. General defects: other than of the Company; affect most of the
material and significant defects, other Company's important management
internal control defects in financial objectives; have a significant impact on
reporting. liquidity (0.8 times ≤ current asset
turnover rate < 1 time ); have a significant
impact on any type of budget indicators
of the Company (profit ≥ RMB 800
million). 2) Significant defects: have a
great impact on the Company's business
objectives: have a great impact on any
type of budget indicators of the
Company; affect some important
management objectives of the Company;
have a great impact on current capital
(0.5 times ≤ current asset turnover rate
﹤ 0.8 times); have a great impact on any
type of budget indicators of the Company
(RMB 400 million ≤ profit ﹤ RMB 800
million). 3) General defects: have a
moderate or less impact on the
67
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Company’s business objectives: have a
moderate or less impact on any type of
budget indicators of the Company; affect
one important management objective or
several general management objectives
of the Company; have a moderate or less
impact on current capital (current asset
turnover rate ﹤ 0.5 times); have a
moderate or less impact on any type of
budget indicators of the Company (profit
﹤ RMB 400 million). 3. the Company's
standards of internal control defects
evaluation in terms of safety: 1) Material
defects: affect a certain number of
employees/public health/safety, critical
accidents. 2) Significant defects: affect
some employees/public health/safety,
major accidents.
3) General defects: affect a small
number of employees/public
health/safety, minor accidents. 4. the
Company's standards of internal control
defects evaluation in terms of
environmental protection: 1) Material
defects: serious environmental damage,
the occurrence of critical environmental
incidents (national level II or above
environmental protection accidents).
2) Significant defects: great
environmental damage and major
environmental incidents (national level
III).
3) General defects: moderate or less
environmental impact, general
environmental incidents (national level
IV).
1. Range of misstatement amount of
material defects in financial statements:
1) misstatement ≥ 5% of total profits; 2)
misstatement ≥ 3% of total assets; 3)
misstatement ≥ 1% of total operating
income; 4) misstatement ≥ 1% of total
shareholders’ equity. 2. Range of
misstatement amount of significant
defects in financial statements: 1) 3% of
total profits ≤ misstatement ＜ 5% of
total profits; 2) 0.5% of total assets ≤
Quantitative criteria 无
misstatement ＜ 3% of total assets; 3)
0.5% of total operating income ≤
misstatement ＜ 1% of total operating
income; 4) 0.5% of total shareholders’
equity ≤ misstatement ＜ 1% of total
shareholders’ equity. 3. Range of
misstatement amount of general defects
in financial statements: 1) misstatement
＜ 3% of total profits; 2) misstatement
＜ 0.5% of total assets; 3) misstatement
＜ 0.5% of total operating income; 4)
68
Bengang Steel Plates Co., Ltd. 2023 Annual Report
misstatement ＜ 0.5% of total
shareholders’ equity.
Number of material defects in financial
0
reporting(a)
Number of material defects in non-
0
financial reporting (a)
Number of significant defects in financial
0
reporting(a)
Number of significant defects in non-
0
financial reporting(a)
2. Internal control audit report
Applicable Not applicable
Opinion in the internal control audit report
According to Fundamental Rules of Enterprise Internal Control and related regulations, Bengang Steel Plates has remained
effective internal control in financial reporting up to December 31st, 2023.
Status of the internal control audit report Disclosure
Disclosing date of the internal control audit report (full text) March 30th, 2024
Index of the internal control audit report (full text) http://www.cninfo.com.cn
Internal audit report’s opinion Standard unqualified opinion
Whether there are significant defects in non-financial reporting No
Whether the accountants’ firm issues a qualified opinion in the internal control audit report
□Yes No
Whether the internal control audit report issued by the accountants’ firm agrees with the self-assessment report of the Board of
Directors
Yes No
XV. Self-examination and rectification of governance initiatives of listed companies
During the reporting period, the Company actively followed and implemented the spirit of Opinions on Further Improving the Quality
of Listed Companies issued by the State Council and worked out the List of Listed Company Governance Initiatives based on China
Securities Regulatory Commission [2020] No. 69 Announcement on Carrying out Initiatives on Corporate Governance of Listed
Companies and the Company’s practical conditions. The list reflected the problems and rectification of governance in listed
companies in a true, accurate and comprehensive manner. The Company made efforts to strengthen the endogenous driving force
of corporate governance, improve the corporate governance system, and build a healthy ecology of corporate governance. In those
ways, it has further optimized the governance structure as a listed company featuring clear-cut duties and responsibilities,
harmonious coordination and operation, and effective check and balance, and has tamped the foundation for high-quality
development as a listed company and promoted the governance level.
69
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Section V. Environmental and Social Responsibility
I. Major environmental issues
Whether the listed company and its subsidiaries belonging to the key pollutant discharge units announced by the environmental
protection department
Yes □No
Environmental protection policies and industry standards
The Company implemented 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, Atmospheric 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, Solid Waste Pollution Prevention and Control Law of the People's Republic of China, and other relevant ecological and
environmental policies, and complied with such industry standards as Water Pollutants Emission Standard for Iron and Steel Industry
(GB13456-2012) and Pollutants Emission Standard for Coking Chemical Industry(GB16171-2012), Sintering and Sintered Pellets Air
Pollutants Emission Standard for Iron and Steel Industry (GB28662-2012), Air Pollutants Emission Standard for Iron Making Industry
(GB28663-2012), Air Pollutants Emission Standard for Steel Rolling Industry (GB28665-2012), and Air Pollutants Emission Standard
for Thermal Power Plants (GB13223-2011).
Environmental protection administrative license
The Company has 14 pollutants discharging units, 11 of which are key pollutants discharging units. The license was obtained for the
first time in December 2018 and was extended to December 2026 in December 2021 according to the requirements of license
management. Three units have been registered and granted the registration receipt of fixed pollution source discharge in March
2020, which is valid until 2025. the Company strictly implements the stable operation of environmental protection facilities, strictly
controls the discharge of pollutants, and discharges pollutants within the scope of permission every year. It completes quarterly
reporting and annual reporting through online filing as required.
Industry emission standards and the description of pollutants emission involved in production and business activities
70
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Category Name of Impleme
of major major nted
Total
Compan pollutan pollutan Number Distribut Emission pollutan Excessiv
Total approve
y or ts and ts and Emission of ion of concentr ts e
emission d
subsidiar characte characte method discharg discharg ation/int discharg emission
s emission
y name ristic ristic e outlets e outlets ensity e s
s
pollutan pollutan standard
ts ts s
Energy
Not
Bengang Wastew General
approve
Steel ater Continu Plant 18.62
COD 1 6.09 50 d by the None
Plates pollutan ous Sewage tonnes
governm
Co., Ltd. ts Treatme
ent
nt Plant
Energy
Not
Bengang Wastew General
Ammoni approve
Steel ater Continu Plant 1.20
a 1 0.37 8 d by the None
Plates pollutan ous Sewage tonnes
nitrogen governm
Co., Ltd. ts Treatme
ent
nt Plant
Raw
material
dumper,
transfer
station,
receivin
g tank,
pre- Raw
Raw
batching material
; iron- material
12-15;
making 25;
sintering
casting sintering
1.34-19;
yard, 50-30;
iron
furnace iron
making
roof, making
fuel, 0.81-9;
25; steel
solvent, steel
making
granulati making Smoke
20-50; Not
Bengang Exhaust Continu on, ore 0.3-10 1,050
Particula special approve
Steel gas ous and coke special tonnes,
te 191 steel 20; d by the None
Plates pollutan intermitt tank, steel powder
matter sintering coking governm
Co., Ltd. ts ent 0.7-10; 11,814
head 10-50; ent
coking tonnes
dust power
10-50;
removal, generati
power
machine on
generati
tail dust 10-30;
removal; on 1-7;
cold
iron and cold
rolling
steel rolling 6-
20; hot
water 18; hot
rolling
pretreat rolling1-
20-30.
ment, 8
north-
south
pouring
station,
tundish,
primary
dust
71
Bengang Steel Plates Co., Ltd. 2023 Annual Report
removal,
seconda
ry dust
removal,
refining
dust
removal;
special
steel
electric
furnace,
refining
furnace;
coking
coal
addition,
coke
pushing,
dry
quenchi
ng,
chimney
desulfuri
zation
and
denitrific
ation;
power
boiler
dust
removal,
desulfuri
zation
and
denitrific
ation;
cold
rolling
acid
regenera
tion,
pickling,
straighte
ning,
welding,
leveling,
annealin
g,
roasting;
hot
rolling
furnace.
Sintering Sintering
head; head 12- Sintering
coke 40; coke head
Not
Bengang Exhaust Continu oven oven 200;
approve
Steel gas Sulfur ous and chimney chimney coke 3,993
65 d by the None
Plates pollutan dioxide intermitt ; power 1.4-50; oven 50- tonne
governm
Co., Ltd. ts ent generati power 100;
ent
on boiler generati power
desulfuri on 0.33- generati
zation; 45; cold on 100-
72
Bengang Steel Plates Co., Ltd. 2023 Annual Report
cold rolling 200; cold
rolling 11-25; rolling
roasting hot 100; hot
and rolling 3- rolling
annealin 79. 150.
g; hot
rolling
heating
furnace.
Sintering Sintering
Sintering
head; head 75-
head
coking 165;
300;
chimney coking
coking
; power chimney
chimney
generati 46-120;
150-500; Not
Bengang Exhaust Continu on power
power approve
Steel gas Nitrogen ous and boiler; generati 8,738
58 generati d by the None
Plates pollutan oxides intermitt cold on 6- tonne
on 100- governm
Co., Ltd. ts ent rolling 130;
200; ent
roasting; cold
cold
annealin rolling
rolling
g; hot 84-94;
200; hot
rolling hot
rolling
heating rolling
300.
furnace. 46-124.
Pollutants treatment
In 2023, the Company has coordinate overall enterprise development and environment protection and has invested 1.72 billion yuan
to comprehensively accelerate ultra-low emission renovation work combined with process route of source reduction, procedure
control and end-of-pipe treatment. It has successively implemented coke oven desulfurization and denitrification transformation
(SDS dry desulfurization/long bag low pressure pulse dust collector/medium and low temperature SCR denitrification process),
sintering desulfurization and denitrification transformation (wet desulfurization/wet electrostatic dust collector/medium and low
temperature SCR denitrification process), material plant closure, blast furnace ore trough/tapping yard transformation (low pressure
pulse coated bag dust collector/wrinkled bag dust collector process), converter tertiary dust collector (pulse coated bag dust collector
process), converter hot metal pretreatment station dust collector transformation (pulse ash cleaning bag dust collector process),
etc. The Company has carried out ultra-low emission transformation in the whole process of organized emission, unorganized
emission and clean transportation, which can realize that the emission concentration of air pollutants meets the requirements of
ultra-low emission standards, and the environmental protection management and control ability of enterprises has been significantly
improved.
Environmental self-monitoring program
During the reporting period, manually monitored pollution source monitoring points: 250 flue gas monitoring points, 13 wastewater
monitoring points, 13 factory boundary noise monitoring points and 15 atmospheric dust reduction points. (1) There are 250 flue gas
monitoring points: 195 organized monitoring points and 55 unorganized monitoring points, which are monitored according to the
frequency of weekly, monthly, quarterly, semi-annual and annual monitoring plans, and the routine monitoring tasks of atmospheric
unorganized and organized flue gas are completed. A total of 2,567 monitoring data are obtained throughout the year. (2) There are
13 monitoring points for wastewater: according to the monitoring plan, the monitoring is divided into weekly, monthly and quarterly
frequencies, and 3228 monitoring data are obtained. (3) There are 13 noise monitoring points at the factory boundary: monitoring is
divided into quarterly frequency according to the monitoring plan, and 416 monitoring data are obtained. (4) There are 15
73
Bengang Steel Plates Co., Ltd. 2023 Annual Report
atmospheric dust falling points: according to the monitoring plan, the monitoring is divided into quarterly frequency, and 180
monitoring data are obtained.
During the reporting period, automatic monitoring of pollution sources: 53 organized monitoring points for flue gas and 2 monitoring
points for wastewater, realizing continuous automatic monitoring.
Emergency plan for environmental emergencies
The Company and its 13 subordinate units carry out environmental emergency management in strict accordance with current laws
and regulations such as the Emergency Response Law of the People's Republic of China, the Notice on Printing and Distributing the
Guidelines for Risk Assessment of Environmental Emergencies in Enterprises (Trial), and the Administrative Measures for Filing
Emergency Plans for Environmental Emergencies in Enterprises and Institutions (Trial), complete the revision of emergency plans for
environmental emergencies, re-carry out risk assessment and emergency resource investigation, and complete the assessment and
filing work according to the management requirements of the Municipal Bureau. At the same time, all units of the Company worked
out the drill plan for 2023 according to the plan, and carried out the corresponding drill work. In 2023, the company held 33 drills of
emergency plans for environmental emergencies, including one "Joint Exercise of Emergency Response for Environmental
Emergencies in Shenyang Modern Metropolitan Area" held by Liaoning Provincial Department of Ecology and Environment.
Investment in environmental governance and protection and payment of environmental protection tax
In 2023, the operating cost of environmental protection facilities will be 1.045 billion yuan, the investment expenditure on
environmental governance and protection will be 774 million yuan, and the environmental protection tax will be 36.6 million yuan.
Measures are taken to reduce carbon emissions during the reporting period and their effects
Applicable Not applicable
1. In 2023, the comprehensive energy consumption per ton of steel will be 564.9 kgce, which is 0.1 kgce lower than planned and 11.1
kgce lower than the same period of last year. The main work is to strengthen the economic operation of each main production
process and improve the recovery of residual energy. The energy consumption ratio of blast furnace, sintering and cold rolling
processes in the main processes is reduced in different degrees; Second, the centralized energy control was put into operation, and
the emission rates of blast furnace gas and coke oven gas systems were 0.31% and 0.21%, respectively, which were lower than
planned and month-on-month.
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 give full play to the peak shaving ability of the gas holder to reduce the gas emission index. In
2023, the blast furnace gas emission rate was 0.31%, which was 0.19% lower than planned and 0.25% lower than the same period of
last year; The emission rate of coke oven gas was 0.21%, which was 0.14% lower than planned and 0.1% lower than the same period
of last year.
3. By adjusting the overhaul time of gas furnace and the recovery parameters of converter gas, the recovery of converter gas per ton
of steel will be completed by 133.8 m3 in 2023, which is 1.8 m3 higher than planned and 2.1 m3 higher than the same period of last
year.
4. Strictly implement the economic operation plan in each process and strengthen the daily electricity management. The annual
power consumption per ton of steel is 500kWh, which is 27kWh lower than planned and 19kWh lower than the same period of last
year.
74
Bengang Steel Plates Co., Ltd. 2023 Annual Report
5. Take measures such as strictly controlling the amount of external steam supply and depressurizing operation of steam pipe
network. The annual consumption of thermal coal was 169,700 tons, 30,300 tons lower than planned and 28,300 tons lower than the
same period of last year.
6. In 2023, 11 energy-saving and carbon-reducing projects will be promoted, 6 projects will be completed, and the remaining 5
projects will be implemented next year. The Company completed six projects, including frequency conversion transformation of
primary dust removal fans of No.4, No.5 and No.6 converters in steelmaking plant, pressure boosting transformation of No.1 CDQ
boiler, heating mode transformation of Xing'an raw material area, heating transformation of high temperature slag flushing water
plate in new furnace, efficiency improvement transformation of heat exchange source of slag flushing water plate in No.6 and No.7
blast furnaces, and transformation of high energy-consuming electromechanical equipment in plate factory area, with annual
benefits of 34.79 million yuan and annual standard coal saving of 36,800 tons.
Administrative penalties for environmental issues during the reporting period
Influence on the
the Company's
Company or Causation of Consequence of production and
Violation rectification
subsidiary name penalty penalty operation of listed
measures
companies
All have been
rectified. First,
strictly implement
management
responsibilities,
strictly control
entry, and strictly
control the entry
of scrap steel with
oversize, grease,
rubber products
and other
environmental
Scrap steel pipes
pollution into the
with rust, scale and
factory. During the
impurities are cut
cutting operation,
in the open air at
on-site personnel
No.3 site of waste
strictly select and
Bengang Steel steel plant, which Penalty: RMB80,
Fugitive emissions None confirm, and store
Plates Co., Ltd. leads to 000
scrap steel that
unorganized
may cause
emission of smoke
environmental
and dust and
pollution
pollutes the
separately without
environment.
processing. Secon
d, the rolls, slag
lumps and waste
coils recovered
internally are
processed by the
cutting room of
the dust collector
in our
factory; Cutting
and processing
pure scrap steel
with low smoke
75
Bengang Steel Plates Co., Ltd. 2023 Annual Report
and dust, such as
medium plate and
tail coil, which are
recovered from
internal
production, in the
existing site; The
large scrap steel
recovered from
non-production
and overhauled in
engineering shall
be handed over to
the scrap steel
plant after being
processed by the
scrap producer
and qualified. If
sensory pollution
occurs during
cutting operation,
operators should
deal with it in time
to reduce the
damage to
environmental
pollution.
The raw materials
in the Coking
Dongfeng Plant
area of the
All have been
Ironmaking
rectified.
General Plant are
Bengang Steel Penalty: Act and rectify
Fugitive emissions easy to produce None
Plates Co., Ltd. RMB30,000 instantly and
dusty materials for
cover the
open stacking. No
materials
effective coverage
measures were
taken to prevent
dust.
All have been
rectified.
Smoke and dust Rectification
overflow from the measures : The dry
exhaust port of 8 # quenching dust
9 # coke screen scraper machine
dust collector in replaced by ultra-
Coking Branch of low emission
Bengang Steel Penalty:
Fugitive emissions Ironmaking None transformation is
Plates Co., Ltd. RMB60,000
General Plant. This used for recycling.
leads to fugitive After replacing the
emission of smoke scraper machine,
and dust and the ash is
pollutes the discharged on
environment. time to avoid
smoke and dust
spillover.
Bengang Steel On line facility There are failures Penalty: None All have been
76
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Plates Co., Ltd. accidents in on-line facilities RMB60,000 rectified. The
of 360 sintering ironmaking plant
desulfurization actively organized
outlet in No.3 the ice cleaning
sintering operation work. Due to the
area of Ironmaking cold weather and
Branch of General safety
Ironmaking Plant. considerations,
During the failure the ice-clearing
period, manual work was
monitoring was completed on the
not conducted as morning of
required. This January 13th . In
causes some data the afternoon of
to be missing. the same day,
manual
monitoring was
implemented. The
monitoring results
show that the
pollutant emission
concentration is
within the limit
and meets the
discharge
standard. At
present, 360
desulfurization
outlet online
equipment is
running normally.
All have been
rectified. Four CDQ
dust removal
facilities and four
coke oven
desulfurization
and denitration
The law treatment facilities
enforcement in Coking Branch
personnel of Benxi are under
Ecological Bureau construction.
checked the According to the
emission of Coking Regulations on the
Bengang Steel Penalty:
Pollutant emission Branch of None Administration of
Plates Co., Ltd. RMB300,000
ironmaking Plant Pollutant
in 2022 and found Discharge Permit,
that the actual if no online
emission of facilities are
particulate matter installed, only the
was excessive. pollution
production
coefficient can be
used for
accounting, so the
total amount of
particulate matter
exceeds the
77
Bengang Steel Plates Co., Ltd. 2023 Annual Report
standard. At
present, coke oven
desulfurization
and denitration
treatment facilities
and CDQ
desulfurization
treatment facilities
are under
construction and
installation, and
the renovation will
be completed in
December 2023.
After the
transformation,
the online method
is adopted to
calculate the
emissions.
All have been
rectified. The Plant
strengthens the
understanding of
the ability of
environmental
protection
management
personnel and
increases the study
of relevant
national norms.
Currently, the
In the high-
online instrument
pressure operation
operation and
area, the excess air
maintenance unit
coefficient of the
such as personnel
25 # furnace CEMS
of the Northern
online monitoring
Bengang Steel On line facility Penalty: Environmental
system is set to None
Plates Co., Ltd. setting problems RMB86,000 Protection
1.4. Thermal
Operation and
energy conversion
Maintenance have
type for gas boiler.
modified the
The basic oxygen
display base
content should be
oxygen content in
set at 3 %.
the 25 # furnace
online facility to be
consistent with the
networking
application form.
This is in line with
the specification
requirements of
5.2-Table 4 of
Emission Standard
for Air Pollutants
from Thermal
Power Plants
78
Bengang Steel Plates Co., Ltd. 2023 Annual Report
G813223-2011).
For boilers whose
heat energy
conversion type is
gas, the basic
oxygen content
should be set at
3 %.
All have been
Law enforcement
rectified. Plate
officers of Benxi
Ironmaking
Ecological Bureau
General Plant
conducted on-site
signed a contract
inspection on
with Xingtai
Benxi Steel Plate
Equipment
Factory. They
Manufacturing
found that the
Co., Ltd.. It will
furnace door in the
professionally
coking operation
operate, maintain
area of the General
and replace 900
Ironmaking Plant
Bengang Steel Penalty: oven doors in
Fugitive emissions (Coking) was not None
Plates Co., Ltd. RMB60,000 coking plant. The
tightly blocked,
contract period is
and some doors
from January 1st ,
and windows of
2023 to December
the coke screening
31st , 2023. Coking
building in the CDQ
Branch Plant shall
operation area
take actions and
were not closed.
rectify instantly,
These problems
and deal with
lead to some
problems as soon
smoke overflow
as possible to
and pollute the
prevent sensory
environment.
pollution.
All have been
rectified.
The Company 1.Increase the
supervised and noise of enclosure
monitored the interception
noise emission at around the
the boundary of induced draft fan.
the desulfurization The expansion
and denitration joint is added at
facilities of 360 the outlet of the
sintering machine, induced draft fan
Bengang Steel Penalty:
Noises and found that it None to the chimney to
Plates Co., Ltd. RMB80,000
exceeded the reduce the
relevant resonance and
requirements of reduce the noise
the Environmental source. Add a
Noise Emission deflector at the
Standard for chimney inlet to
Industrial change the reverse
Enterprises direction of the
(GB12348-2008). flue gas flow and
divert the flue gas
to reduce noise.
79
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Increase the
cyclone to destroy
the impact of flue
gas and the inner
wall of the
chimney to reduce
the noise source.
On November 18th
2023, the
monitoring station
of Benxi City
conducted a
retest, and the
noise monitoring
results met the
standard.
The law
enforcement
personnel of Benxi
Ecological Bureau
implemented on-
site inspection of
All have been
the resource
rectified.
service branch.
Immediately stop
They found that
the operation that
the staff in the
Bengang Steel Penalty: the steel grabbing
Fugitive emissions operation area None
Plates Co., Ltd. RMB60,000 machine in the
filled the torpedo
southern tank
tank with scrap
station to add
steel by grabbing
scrap steel to the
steel machine. This
torpedo tank.
leads to a large
amount of smoke,
which is directly
discharged into
the air and pollutes
the environment.
All have been
rectified. The
The sulfur dioxide
desulfurization
and nitrogen
and denitrification
oxides at the
treatment facilities
chimney outlet of
of No.4B and No.5
coke ovens 4B and
coke ovens in the
5 in the coking
General Plates
process of the
Ironmaking Plant
ironmaking plant
started
Bengang Steel were monitored. Penalty:
Pollutant emission None construction in
Plates Co., Ltd. The concentration RMB180,000
April 2023. The
of pollutants
construction was
exceeded the
completed on
emission limit in
October 15,2023,
the Coking
and the
Chemical Industry
commissioning
Pollutant Emission
was carried out
Standard
after debugging.
GB16171-2012.
During
commissioning , it
80
Bengang Steel Plates Co., Ltd. 2023 Annual Report
can temporarily
meet the ultra-low
emission
standards. It is
now put into
official operation
and is in line with
ultra-low emission
standards.
Other environmental information that should be disclosed
None
Other environmental protection related information
None
II. Social responsibility
Please refer to 2023 Corporate Social Responsibility Report of Bengang Steel Plates Co., Ltd. disclosed on http://www.cninfo.com.cn
on March 30th, 2024.
III. Consolidate and expand the achievements of poverty alleviation and rural revitalization
Further consolidate the fruit of poverty solving and poverty alleviation for employees and push forward effective coherence of
poverty employee assistance and elevation of employees’ living quality. Strictly implement the Principle of “Construct all that need
to be constructed, help all that need to be helped, manage dynamically and adopt targeted policies”. Stay firmly the faith that “Never
leave any employees behind”. Establish a long-acting mechanism of doing practical things and good things to employees to solve the
problems of employees. Grant 4, 002, 100 yuan salvage money to 47 needy employees all year round and promote whole coverage
to register and help poor employees that meet the standards.
The Company has actively selected excellent officials to join rural revitalization work. Currently, there are 5 people serving as first
Party secretaries. Focusing on serving to find a new breakthrough for a three-year action of rejuvenation in all respects and based on
actual condition of the location, resident working team members remain true to the commitment and strive to fulfill the mission,
engaging in tenacious struggle with firm confidence. Poverty elimination and works of preventing people from falling back into
poverty at pair-up poverty alleviation points have been well accomplished in 2023. The Company has provided growth points to rural
collective economies by ways such as a direct sentinel procurement of resident agricultural and sideline products for employee
welfare,etc and the income per capita is effectively increased. The Company has been awarded as advanced unit of targeted poverty
alleviation in Liaoning Province for years.
81
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Section VI Important Events
I. Performance of committed issues
1. The fulfilled commitments during the reporting period and under-fulfillment commitments by the end of
the reporting period made by actual controller, shareholder, party involved, acquirer, company and other
related parties
Applicable Not applicable
Type of Commitment Commitment
Commitments Commitment party Contents Performance
commitment time period
In order to maintain the
independence of
Bengang Steel Plates,
Ansteel Group
undertakes the
following: 1. Ansteel
Group guarantees to
keep separate from
Bengang Steel Plates in
terms of assets,
personnel, finance,
organization and
business, and strictly
abides by the China
Securities Regulatory
Commission's
regulations on the
independence of listed
Commitment companies. It does not
made in the use its controlling
Under
acquisition Ansteel Group Co., Other position to interfere August 20th,
Long term normal
report or the Ltd. commitment with the standard 2021
fulfillment
equity change operation of Bengang
report Steel Plates, interfere
with Bengang Steel
Plates’ business
decisions, or damage the
legitimate rights and
interests of Bengang
Steel Plates and other
shareholders. Ansteel
Group and other
subsidiaries controlled
by it promise not to
illegally occupy the
funds of Bengang Steel
Plates and its controlled
subsidiaries in any way.
2. The above
commitments will
continue to be effective
during the period when
82
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Type of Commitment Commitment
Commitments Commitment party Contents Performance
commitment time period
Ansteel Group has
control over Bengang
Steel Plates. If Ansteel
Group fails to fulfill the
above-mentioned
commitments and
causes losses to
Bengang Steel Plates,
Ansteel Group will bear
the corresponding
liability for
compensation.
In order to avoid
horizontal competition,
Ansteel Group
undertakes the
following: (1) In view of
the overlapping business
between Ansteel Group
and Bengang Steel
Plates 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. Within 5
years or less time if more
effort from the date of
Commitment issue, it will
made in the comprehensively adopt
Under
acquisition Ansteel Group Co., Other various methods such as August 20th,
Long term normal
report or the Ltd. commitment asset restructuring, 2021
fulfillment
equity change business adjustment,
report and entrusted
management to steadily
promote the integration
of relevant businesses to
solve the problem of
horizontal competition,
in accordance with the
requirements of the
relevant securities
regulatory authorities,
under the premise of
complying with the
applicable laws and
regulations and relevant
regulatory rules at that
time, and in the principle
of facilitating the
development of
Bengang Steel Plates
and safeguard the
83
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Type of Commitment Commitment
Commitments Commitment party Contents Performance
commitment time period
interests of
shareholders, especially
the interests of small
and medium
shareholders. The
aforesaid solutions
include but are not
limited to: 1) Asset
restructuring: a different
way of asset purchase,
asset replacement, asset
transfer or other
feasible restructuring
methods permitted by
relevant laws and
regulations, such as cash
consideration or issue
share consideration. It
will gradually sort out
and reorganize the
assets of the overlapping
parts of the business
between Ansteel Group
and Bengang Steel
Plates to eliminate the
overlapping of some
businesses. 2) Business
adjustment: it will sort
out the business
boundaries and try the
best to achieve
differentiated
operations, such as
business categorization
through asset
transactions, business
separation and other
different methods,
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 entrust
decision making and
management of related
asset operation of
overlapping parts to the
other party for unified
management. 4) Other
feasible solutions
permitted by laws,
regulations and relevant
84
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Type of Commitment Commitment
Commitments Commitment party Contents Performance
commitment time period
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) Ansteel
Group has not yet
formulated a specific
implementation plan
and time arrangement
for solving the problem
of partial business
overlap between
Ansteel Group and
Bengang Steel Plates. It
will timely perform the
duty of disclosing
information required by
relevant laws and
regulations when a
feasible, specific plan is
formulated. (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 Plates, Ansteel
Group will do its best to
give Bengang Steel
Plates the priority to
develop such
opportunities and the
right to first refuse or
purchase the project,
ensure the price of the
relevant transaction is
fair and reasonable, and
set the price based on
the business practices
followed in normal
commercial transactions
as independent third
parties. (4) Ansteel
Group guarantees that it
85
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Type of Commitment Commitment
Commitments Commitment party Contents Performance
commitment time period
will strictly abide by
laws, regulations,
Articles of Association of
Bengang Steel Plates
Co., Ltd. and its relevant
management system,
and not use its position
as an indirect controlling
shareholder of Bengang
Steel Plates to seek
illegitimate interests
which thereby impair
the rights and interests
of other shareholders of
Bengang Steel Plates. (5)
During the period of
control over Bengang
Steel Plates, the above
commitments made by
Ansteel Group are all
valid. In the event of
violation of the above
commitments and the
damage to the rights and
interests of Bengang
Steel Plates is caused,
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 the
independence of
Commitment Bengang Steel Plates’
made in the business, the
Under
acquisition Ansteel Group Co., Other completeness of its August
Long term normal
report or the Ltd. commitment assets, and the 20th,2021
fulfillment
equity change independence and
report completeness of
production, supply, sales
and other auxiliary
facilities. 2. Ansteel
Group and other
enterprises controlled
by Ansteel Group will
not take advantage of
the control over
Bengang Steel Plates to
seek preferential
86
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Type of Commitment Commitment
Commitments Commitment party Contents Performance
commitment time period
transactions with
Bengang Steel Plates
and its subordinate
enterprises. 3. Ansteel
Group and other
enterprises controlled
by Ansteel Group will
avoid and reduce
unnecessary
transactions with
Bengang Steel Plates
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 Plates
and its subordinate
enterprises in
accordance with the
principles of fairness,
equity, and
compensation for equal
value, perform legal
procedures, and comply
with relevant laws,
regulations and
standard documents
and Articles of
Association of Bengang
Steel Plates Co., Ltd. to
perform the duty of
disclosing information
and execute relevant
internal decision making
and approval
procedures. Ansteel
Group ensures that it
will not offer an unfair
price or condition
compared with market
price in the transactions
with Bengang Steel
Plates and its
subordinate enterprises
and not use such
transactions to engage
in any behavior that
damages the legitimate
rights and interests of
Bengang Steel Plates
and its shareholders. 4.
87
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Type of Commitment Commitment
Commitments Commitment party Contents Performance
commitment time period
In the event of violation
of the above
commitments and the
damage to the
legitimate rights and
interests of Bengang
Steel Plates is caused,
Ansteel Group will
compensate for the
losses caused to
Bengang Steel Plates
according to laws.
According to the
relevant regulations of
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
Commitment Company directors,
benefits to other units or
made during senior Under
Other individuals without May 22nd,
initial public management/Benxi Long term normal
commitment compensation or under 2019
offering or Steel & Iron (Group) fulfillment
unfair conditions, nor to
refinancing Co., Ltd.
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
88
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Type of Commitment Commitment
Commitments Commitment party Contents Performance
commitment time period
Board of Directors or the
remuneration system
established by the
remuneration and
appraisal committee to
be linked to the
implementation of the
Company's
compensation
measures, and vote in
favor of the relevant
proposals reviewed by
the Company's Board of
Directors and general
meetings (If I have
voting rights). 6. If the
Company intends to
implement equity
incentives, I promise to,
within the scope of my
responsibilities and
authority, make every
effort to promote the
Company’s proposed
equity incentive exercise
conditions to be linked
to the implementation
of the Company's
compensation
measures, and vote in
favor of the relevant
proposals reviewed by
the Company's Board of
Directors and general
meetings (If I have
voting rights). 7.
Between the issuance of
this commitment and
the completion of the
Company’s public
issuance of convertible
corporate bonds, if
China Securities
Regulatory Commission
announces other new
regulations on
compensation measures
and commitments and
the above commitments
cannot meet the
regulations, the
Company promises to
issue a supplementary
promise in accordance
with the latest
regulations. The
89
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Type of Commitment Commitment
Commitments Commitment party Contents Performance
commitment time period
Company's controlling
shareholder, Benxi Iron
& Steel (Group) Co., Ltd.,
promises not to
interfere with the
Company's operation
and management
activities beyond its
authority nor to infringe
on the Company's
interests.
1. The filing of foreign
economic and trade
operators, taking into
account the need to
gradually improve the
qualification
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
Commitment Bengang Steel Plates,
Bengang Group Co.,
made during the Group agrees that Under
Ltd. and Benxi Steel Other July
initial public within the period of no Long term normal
& Iron (Group) Co., commitment 24th,2019
offering or more than 5 years from fulfillment
Ltd.
refinancing the date of issuance of
this commitment, the
main import and export
business of Bengang
Steel Plates will still be
represented by Bengang
International Trade until
Bengang Steel Plates can
independently develop
Import and export
business, and Bengang
International
Trade,during this period,
will provide the
necessary support for
the establishment and
improvement of
Bengang Steel Plates’
import and export
business. In addition,
the sales company
90
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Type of Commitment Commitment
Commitments Commitment party Contents Performance
commitment time period
under Bengang
International Trade is
only responsible for
selling the products of
Beiying Iron and Steel
(Group), and never sells
steel products of a third
party. 2. The sales
company under the
Group, Shanghai
Bengang Iron and Steel
Sales Co., Ltd., is
currently no longer
actually engaged in any
business activities,
specifically: 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, 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.
In order to avoid
horizontal competition,
Benxi Iron and Steel
Group Co., Ltd. and
Bengang Group Co., Ltd.
(hereinafter collectively
Commitment referred to as the
Bengang Group Co.,
made during Group), as a direct Under
Ltd. and Benxi Steel Other July
initial public controlling shareholder Long term normal
& Iron (Group) Co., commitment 24th,2019
offering or and an indirect fulfillment
Ltd.
refinancing shareholder of Bengang
Steel Plates Co., Ltd.
(Hereinafter referred to
as Bengang Steel Plates),
undertake the following:
1. During the period
when the Group is the
91
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Type of Commitment Commitment
Commitments Commitment party Contents Performance
commitment time period
controlling shareholder
of Bengang Steel Plates,
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
expanded business of
Bengang Steel Plates
and its subsidiaries. If
any business may
compete with the
expanded business of
Bengang Steel Plates
and its subsidiaries, it
will withdraw from the
competition with
Bengang Steel Plates as
follows: (1) Stop the
business that may or
may compete with
Bengang Steel Plates
and its subsidiaries; (2)
Incorporate the
competing businesses
92
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Type of Commitment Commitment
Commitments Commitment party Contents Performance
commitment time period
into the business scope
of Bengang Steel Plates
and its subsidiaries in a
legal and compliant
manner; (3) Transfer the
competing business to
unrelated third parties.
3. If the Group has
engaged in or
participated in any
business opportunity
that may constitute
competition with
Bengang Steel Plates’
operation, the Group
shall immediately notify
Bengang Steel Plates of
the above opportunity.
If Bengang Steel Plates is
willing to take
advantage of the
business opportunity
and replies with an
affirmative answer
within a reasonable
period specified in the
notice, the Group will
endeavor to give the
business opportunity to
Bengang Steel Plates
with the conditions not
worse than those
offered 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.
Commitment Bengang Group Co., In order to regulate The Under
Other July
made during Ltd. and Benxi Steel Group's related Long term normal
commitment 24th,2019
initial public & Iron (Group) Co., transaction with fulfillment
93
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Type of Commitment Commitment
Commitments Commitment party Contents Performance
commitment time period
offering or Ltd. Bengang Steel Plates,
refinancing Benxi Iron and Steel
Group Co., Ltd. and
Bengang Group Co., Ltd.
(hereinafter collectively
referred to as the
Group), as a direct
controlling shareholder
and an indirect
shareholder of Bengang
Steel Plates Co., Ltd.
(Hereinafter referred to
as Bengang Steel Plates),
undertake the following:
1. The Group will fully
respect the independent
legal person status of
Bengang Steel Plates,
ensure the independent
operation and
independent decision
making of Bengang Steel
Plates, guarantee the
independence of
Bengang Steel Plates’
business, the
completeness of asset,
and the independence
of personnel and finance
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
enterprises controlled
by the Group promise
not to use loans, debt
repayment, substitute
funds or other ways to
occupy or
misappropriate the
funds of Bengang Steel
Plates and its
subsidiaries, nor require
Bengang Steel Plates
and its subsidiaries to
provide illegal
guarantees for the
Group and other
enterprises controlled
by the Group. 3. The
Group and other
94
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Type of Commitment Commitment
Commitments Commitment party Contents Performance
commitment time period
enterprises controlled
by the Group will reduce
related transactions as
much as possible with
Bengang Steel Plates. If
related transactions are
indeed necessary and
unavoidable, it will
strictly implement the
decision making
authority, decision
making procedures,
avoidance system and
other requirements
stipulated in Bengang
Steel Plates’ Articles of
Association and related
transaction decision
making systems, give full
play to the role of the
Board of Supervisors and
independent directors,
and earnestly fulfill the
obligation of disclosing
information to ensure
that transactions are
conducted in
accordance with the
open, fair, and equal
principles of market
transactions and normal
commercial terms. The
Group and other
enterprises controlled
by the Group will not
require or accept
Bengang Steel Plates to
offer preferential
treatment which is not
given to a third party in
any fair market
transaction, thereby
protecting other
shareholders and
interests of Bengang
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
95
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Type of Commitment Commitment
Commitments Commitment party Contents Performance
commitment time period
shareholder. If any
violation of the above
commitments occurs,
the Group therefore will
bear all the losses
caused to Bengang Steel
Plates.
Whether
Commitment
Yes
fulfilled on
time or not
2. The Company remarks that there are assets or projects which meet the original profit forecast and the
reasons when there are assets or projects profit forecast of the Company and the reporting period is still in
the forecast period
□Applicable Not applicable
II. Non-operating capital occupation of listed companies by the controlling shareholder and
other related parties
□Applicable Not applicable
There was no non-operating occupation of funds by the controlling shareholder and related parties.
III. Non-compliance with external guarantees
□Applicable Not applicable
There was no non-compliance with external guarantees.
IV. Illustration by the Board of Directors on the latest Qualified Audit Report
□Applicable Not applicable
V. Illustration by the Board of Directors, the Supervisory Committee and the Independent
Directors (if any) on the Qualified Audit Report of the accountants’ firm for the reporting period
□Applicable Not applicable
VI. Illustration of changes in accounting policy, accounting estimate and significant accounting
error as compared with the financial report of last year
Applicable Not applicable
1. Significant changes in accounting policy
(1) Implement "Accounting for deferred income tax related to assets and liabilities arising from a single transaction which is not
subject to the accounting treatment of initial recognition exemption" in Accounting Standards for Business Enterprises
Interpretation No. 16.
96
Bengang Steel Plates Co., Ltd. 2023 Annual Report
On November 30th, 2022, the Ministry of Finance issued the Accounting Standards for Business Enterprises Interpretation No. 16
(Caikuai [2022] No. 31, hereinafter referred to as Interpretation No. 16), in which "Accounting for deferred income tax related to
assets and liabilities arising from a single transaction which is not subject to the accounting treatment of initial recognition
exemption" came into force on January 1st, 2023.
Interpretation No. 16 stipulates that for a single transaction that is not a business combination, neither affects accounting profit
nor taxable income (or deductible loss) at the time of the transaction, and the assets and liabilities initially recognized result in the
same amount of taxable temporary differences and deductible temporary differences (including the lease transaction where the
lessee initially recognizes lease liabilities and includes them in the right-of-use asset on the commencement date of the lease term,
and the provision for fixed assets is recognized and included in the cost of related assets and other single transactions), the
provisions for the exemption of initial recognition of deferred income tax liabilities and deferred income tax assets are not
applicable. When the transaction occurs, the enterprise shall recognize the corresponding deferred income tax liabilities and
deferred income tax assets respectively in accordance with the "Accounting Standards for Business Enterprises No. 18-Income Tax"
and other relevant regulations.
Where taxable temporary differences and deductible temporary differences arise from a single transaction that applies the
provisions between the beginning of the earliest period presented in the financial statements for the first time applying the
provisions and the date of implementation, as well as lease liabilities and right-of-use assets recognized as a result of a single
transaction that applies the provisions at the beginning of the earliest period presented in the financial statements, as well as
estimated liabilities related to decommissioning obligations and corresponding related assets recognized, the enterprise shall make
adjustments in accordance with the provisions.
The Company will implement this regulation as of January 1st , 2023. The main effects of implementing this regulation are as
follows :
Contents and reasons of Account effected to the balance on January 1st, 2022
Report items effected
accounting policy change Consolidated Parent company
The adjustment of the Deferred income tax assets 360,091,312.08 360,091,312.08
operating lease existing
before the first execution
Deferred income tax liabilities 360,091,312.08 360,091,312.08
date by the company as
the lessee.
Contents and Consolidated Parent company
reasons of Report items
December 31st , December December 31st , December 31st ,
accounting policy effected
2023/FY2023 31st ,2022/FY2022 2023/FY2023 2022/FY2022
change
The adjustment of Deferred
the operating lease income tax 340,687,848.63 344,997,678.47 340,687,848.63 344,997,678.47
existing before the assets
97
Bengang Steel Plates Co., Ltd. 2023 Annual Report
first execution date Deferred
by the company as income tax 329,904,044.87 344,997,678.47 329,904,044.87 344,997,678.47
the lessee liabilities
VII. Illustration of changes in the consolidation scope as compared with the financial report of last
year
□Applicable Not applicable
There were no changes of consolidated report scope.
VIII. Appointment and dismissal of certified accountants’ firm
Accountants’ firm currently appointed
BDO China Shu Lun Pan Certified Public Accountants LLP
Name of the domestic accountants’ firm
(Special General Partnership)
Payment to the domestic accountants’ firm (in RMB 10,000) 295
Service life of domestic accountants’ firm providing audit
1
service
Name of CPAs from the domestic accountants’ firm Guo Shunxi, Zhang Jiahui and Fu Yangyi
Service life of domestic accountants’ providing audit service 1
Name of the oversea accountants’ firm (if any) Not applicable
Payment to the oversea accountants’ firm (in RMB 10,000) (if
0
any)
Service life of oversea accountants’ firm providing audit service
Not applicable
(if any)
Name of CPAs from the oversea accountants’ firm (if any) Not applicable
Service life of oversea accountants’ providing audit service (if
Not applicable
any)
Whether the accountants’ firm is changed during the auditing period
□Yes No
Engagement of accountant’s firms, financial consultants or sponsors for internal control auditing
Applicable Not applicable
The Company appointed BDO China Shu Lun Pan Certified Public Accountants LLP (Special General Partnership) as the audit institution
for internal control auditing at the price of RMB 600,000.
IX. Risk of suspension or termination of listing after the disclosure of the annual report
□Applicable Not applicable
X. Bankruptcy and restructuring events
□Applicable Not applicable
There were no bankruptcy and restructuring events during the reporting period.
98
Bengang Steel Plates Co., Ltd. 2023 Annual Report
XI. Significant lawsuits and arbitrations
Applicable Not applicable
Enforcement
Basic Total amount Where there Judicial result
Progress of of the
information involved are and influence Date of Index of
lawsuits judgment of
of lawsuits (RMB estimated of lawsuits disclosure disclosure
(arbitrations) lawsuits and
(arbitrations) 10,000) liabilities (arbitrations)
arbitrations
Summary of
significant The
lawsuits and Company has Implementat
arbitrations 9,132.49 No In judgement won most ion according
not reaching cases and is to laws
the standard not affected.
of disclosure
XII. Punishment and rectification
Applicable Not applicable
Type of
Conclusion (if Date of Index of
Name Type Reason investigation
any) disclosure disclosure
punishment
The earnings
His father did a
have been August 12th ,
Liu Yansong Senior manager short-term Other 2023-045
handed in to 2023
trading
the Company
Illustration of the rectification
Applicable Not applicable
1.Mr.Liu Yansong expressed deep self-blame for the failure to timely remind and urge the obligation, and sincerely apologized to the
majority of investors. He also promised to study in depth and strictly abide by the provisions of relevant laws and regulations,
consciously maintain the order of the securities market and urge relatives to implement in place to prevent such situations. Mr. Liu
Gang has deeply realized the seriousness of this matter, and sincerely apologizes to the investors for the adverse effects of this short-
term transaction, and will strengthen the study of relevant laws and regulations in the future. Strictly abide by the relevant regulations
in securities trading to ensure that such situations do not occur again. Mr. Liu Yansong and his father Mr. Liu Gang promised to
consciously abide by the provisions of Article 44 of the " Securities Law " on the prohibition of short-term transactions, and not to sell
company shares within six months from the date of the last purchase of company shares, and not to buy company shares within six
months from the date of the last sale of company shares.
2. According to the provisions of Article 44 of the Securities Law, the income of Mr. Gang Liu should be owned by the company. Mr.
Gang Liu made a total profit of RMB 1,087 yuan in this short-term transaction, which has been turned over to the company.
3. The Board of Directors of the Company will continue to strengthen compliance training and publicity. Directors, supervisors, senior
managers and shareholders holding more than 5% of the Company's shares are required to strengthen their study of relevant laws,
regulations and normative documents such as Securities Law, Guidelines for Self-regulation of Listed Companies No.1-Standardized
Operation of Listed Companies on Main Board, Guidelines for Self-regulation of Listed Companies of Shenzhen Stock Exchange No.10-
Share Change Management, Rules for the Management of Shares and Changes of the Company Held by Directors, Supervisors and
Senior Managers of Listed Companies, and strictly abide by relevant regulations. The Company will further urge relevant personnel
to strictly regulate the behavior of buying and selling the Company's shares, so as to prevent such incidents from happening again.
99
Bengang Steel Plates Co., Ltd. 2023 Annual Report
XIII. Credit status of the Company and its controlling shareholders and actual controllers
□Applicable Not applicable
XIV. Major related transactions
1. Related transactions relevant to daily operations
Applicable Not applicable
The
Amoun Means
Pricing approv Wheth Availab
Conten t of of
Type of principl Price of Proport ed er le
t of related payme Index
related e of related ion of trading exceed market Date of
Related Relatio related party nt of of
party related party similar limit of the price of disclos
parties nship party transac related disclos
transac party transac transac transac approv similar ure
transac tions s party ure
tions transac tions tions tions ed limit transac
tions (RMB transac
tions (RMB (Y/N) tions
10,000) tions
10,000)
Benxi
Purch Execu
Beiyin Both Purch
asing Relate te
g Iron belon asing Mark Dece
goods d 1,116, accor
and g to main et 19.14 1,508, mber 2022-
/provi agree 629.5 No ding Yes
Steel Benga raw princi % 000 14th , 073
ding ment 9 to the
(Grou ng mater ples 2022
servic price agree
p) Co., Group ials
es ment
Ltd.
Benxi Purch Execu
Purch
Iron Same asing Relate te
asing Mark Dece
and paren goods d accor
main et 608,8 10.44 895,0 mber 2022-
Steel t /provi agree No ding Yes
raw princi 01 % 00 14th , 073
Minin comp ding ment to the
mater ples 2022
g Co., any servic price agree
ials
Ltd. es ment
Benxi
Iron
and Purch Execu
Purch
Steel Same asing Relate te
asing Mark Dece
(Grou paren goods d accor
main et 23,98 30,00 mber 2022-
p) t /provi agree 0.41% No ding Yes
raw princi 8.48 0 14th , 073
Metall comp ding ment to the
mater ples 2022
urgica any servic price agree
ials
l Slag es ment
Co.,
Ltd.
Benxi
Iron
and Purch Execu
Purch
Steel Same asing Relate te
asing Mark Dece
(Grou paren goods d accor
main et 29,70 60,00 mber 2022-
p) t /provi agree 0.51% No ding Yes
raw princi 9.96 0 14th , 073
Indust comp ding ment to the
mater ples 2022
rial any servic price agree
ials
Devel es ment
opme
nt Co.,
100
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Ltd.
Purch Execu
Both Purch
Anste asing Relate te
belon asing Mark Dece
el goods d accor
g to main et 7,804. 10,00 mber 2022-
Group /provi agree 0.13% No ding Yes
Anste raw princi 06 0 14th , 073
Co., ding ment to the
el mater ples 2022
Ltd. servic price agree
Group ials
es ment
Anste
el
Purch Execu
Group Both Purch
asing Relate te
Minin belon asing Mark Dece
goods d accor
g g to main et 37,50 50,00 mber 2022-
/provi agree 0.64% No ding Yes
Gongc Anste raw princi 1.57 0 14th , 073
ding ment to the
hangli el mater ples 2022
servic price agree
ng Group ials
es ment
Co.,
Ltd
Anste
el
Group Purch Execu
Both Purch
Intern asing Relate te
belon asing Mark Dece
ationa goods d accor
g to main et 36,94 30,00 mber 2022-
l /provi agree 0.63% Yes ding Yes
Anste raw princi 9 0 14th , 073
Econo ding ment to the
el mater ples 2022
mic servic price agree
Group ials
Trade es ment
Co.,
Ltd.
Anste
el Purch Execu
Both Purch
Scrap asing Relate te
belon asing Mark Dece
Resou goods d accor
g to main et 65,56 130,0 mber 2022-
rces /provi agree 1.12% No ding Yes
Anste raw princi 9.22 00 14th , 073
(Ansh ding ment to the
el mater ples 2022
an) servic price agree
Group ials
Co., es ment
Ltd.
Purch Execu
Anste Both Purch
asing Relate te
el belon asing Mark Dece
goods d accor
Group g to main et 10,00 mber 2022-
/provi agree 0 0.00% No ding Yes
Minin Anste raw princi 0 14th , 073
ding ment to the
g Co., el mater ples 2022
servic price agree
Ltd Group ials
es ment
Panzh
ihua
Iron
Purch Execu
and Both Purch
asing Relate te
Steel belon asing Mark Dece
goods d accor
Group g to main et 357.3 mber 2022-
/provi agree 0.01% 4,000 No ding Yes
Vanad Anste raw princi 4 14th , 073
ding ment to the
ium el mater ples 2022
servic price agree
Titani Group ials
es ment
um
Resou
rces
101
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Co.,
Ltd
Shanx
i
Purch Execu
produ Both Purch
asing Relate te
cts belon asing Mark Dece
goods d accor
intern g to main et 4,356. mber 2022-
/provi agree 0.07% 0 Yes ding Yes
ationa Benga raw princi 15 14th , 073
ding ment to the
l ng mater ples 2022
servic price agree
energ Group ials
es ment
y co.,
ltd
Anste
el
metall
Purch Execu
urgy Both Purch
asing Relate te
furnac belon asing Mark Dece
goods d accor
e g to main et 2,059. mber 2022-
/provi agree 0.04% 0 Yes ding Yes
mater Benga raw princi 21 14th , 073
ding ment to the
ial ng mater ples 2022
servic price agree
techn Group ials
es ment
ology
co.,
ltd
Benxi
Purch Execu
Beijin Both Purch
asing Relate te
g Iron belon asing Mark Dece
goods d accor
and g to auxilia et mber 2022-
/provi agree 0 0.00% 2,000 No ding Yes
Steel Benga ry princi 14th , 073
ding ment to the
(Grou ng mater ples 2022
servic price agree
p) Co., Group ials
es ment
Ltd.
Liaoni
ng
hengt
ong
Purch Execu
metall Both Purch
asing Relate te
urgica belon asing Mark Dece
goods d accor
l g to auxilia et 13,79 20,00 mber 2022-
/provi agree 0.24% No ding Yes
equip Benga ry princi 6.47 0 14th , 073
ding ment to the
ment ng mater ples 2022
servic price agree
manu Group ials
es ment
factur
ing
co.,
ltd
Benxi Associ Purch Execu
Purch
Iron ates asing Relate te
asing Mark Dece
and of the goods d accor
auxilia et 15,03 20,00 mber 2022-
Steel paren /provi agree 0.26% No ding Yes
ry princi 6.48 0 14th , 073
Electri t ding ment to the
mater ples 2022
c Co., comp servic price agree
ials
Ltd any es ment
Benxi Same Purch Purch Relate Execu
Mark Dece
Iron paren asing asing d te
et 8,016. 12,00 mber 2022-
and t goods auxilia agree 0.14% No accor Yes
princi 25 0 14th , 073
Steel comp /provi ry ment ding
ples 2022
(Grou any ding mater price to the
102
Bengang Steel Plates Co., Ltd. 2023 Annual Report
p) servic ials agree
Machi es ment
nery
Manu
factur
ing
Co.,
Ltd.
Anste
el
Indust
Purch Execu
ry Both Purch
asing Relate te
Group belon asing Mark Dece
goods d accor
Metall g to auxilia et 1,034. mber 2022-
/provi agree 0.02% 1,500 No ding Yes
urgica Anste ry princi 79 14th , 073
ding ment to the
l el mater ples 2022
servic price agree
Machi Group ials
es ment
nery
Co.,
Ltd
Purch Execu
Anste Both Purch
asing Relate te
el belon asing Mark Dece
goods d accor
steel g to auxilia et mber 2022-
/provi agree 40.23 0.00% 1,000 No ding Yes
rope Anste ry princi 14th , 073
ding ment to the
co., el mater ples 2022
servic price agree
ltd Group ials
es ment
Other Purch Execu
Both Purch
subsid asing Relate te
belon asing Mark Dece
iaries goods d accor
g to auxilia et mber 2022-
of /provi agree 0 0.00% 550 No ding Yes
Anste ry princi 14th , 073
Anste ding ment to the
el mater ples 2022
el servic price agree
Group ials
Group es ment
Benxi
Purch Execu
Beijin Both
asing Purch Relate te
g Iron belon Mark Dece
goods asing d accor
and g to et 61,99 80,00 mber 2022-
/provi energ agree 1.06% No ding Yes
Steel Benga princi 0.78 0 14th , 073
ding y ment to the
(Grou ng ples 2022
servic power price agree
p) Co., Group
es ment
Ltd.
Benxi
Iron
Purch Execu
and Accep
Same asing Relate te
Steel ting Mark Dece
paren goods d accor
(Grou suppo et 47,35 58,50 mber 2022-
t /provi agree 0.81% No ding Yes
p) rtive princi 9.85 0 14th , 073
comp ding ment to the
Const servic ples 2022
any servic price agree
ructio es
es ment
n Co.,
Ltd.
Benxi Both Purch Accep Execu
Relate
Beijin belon asing ting Mark te Dece
d
g Iron g to goods suppo et 10,39 10,00 accor mber 2022-
agree 0.18% Yes Yes
and Benga /provi rtive princi 4.2 0 ding 14th , 073
ment
Steel ng ding servic ples to the 2022
price
(Grou Group servic es agree
103
Bengang Steel Plates Co., Ltd. 2023 Annual Report
p) Co., es ment
Ltd.
Benxi
Iron
and
Purch Execu
Steel Accep
Same asing Relate te
(Grou ting Mark Dece
paren goods d accor
p) suppo et 65,13 10,00 mber 2022-
t /provi agree 1.12% Yes ding Yes
Equip rtive princi 7.29 0 14th , 073
comp ding ment to the
ment servic ples 2022
any servic price agree
Engin es
es ment
eering
Co.,
Ltd.
Benxi
Iron Purch Execu
Accep
and Same asing Relate te
ting Mark Dece
Steel paren goods d accor
suppo et 987.5 mber 2022-
(Grou t /provi agree 0.02% 5,000 No ding Yes
rtive princi 7 14th , 073
p) comp ding ment to the
servic ples 2022
Minin any servic price agree
es
g Co., es ment
Ltd.
Benxi
Iron
and
Steel Purch Execu
Both Accep
Group asing Relate te
belon ting Mark Dece
Intern goods d accor
g to suppo et 6,129. 20,00 mber 2022-
ationa /provi agree 0.11% No ding Yes
Benga rtive princi 09 0 14th , 073
l ding ment to the
ng servic ples 2022
Econo servic price agree
Group es
mic es ment
Trade
Co.,
Ltd.
Benxi
Iron
and
Steel Purch Execu
Accep
(Grou Same asing Relate te
ting Mark Dece
p) paren goods d accor
suppo et 1,756. 10,00 mber 2022-
Infor t /provi agree 0.03% No ding Yes
rtive princi 84 0 14th , 073
matio comp ding ment to the
servic ples 2022
n any servic price agree
es
Auto es ment
matio
n Co.,
Ltd.
Anste
el Purch Execu
Both Accep
Steel asing Relate te
belon ting Mark Dece
Proce goods d accor
g to suppo et 146.7 mber 2022-
ssing /provi agree 0.00% 1,300 No ding Yes
Anste rtive princi 8 14th , 073
and ding ment to the
el servic ples 2022
Distri servic price agree
Group es
butio es ment
n
104
Bengang Steel Plates Co., Ltd. 2023 Annual Report
(Chan
gchun
) Co.,
Ltd.
Anste
el Purch Execu
Accep
Group Associ asing Relate te
ting Mark Dece
Engin ates goods d accor
suppo et 49,64 mber 2022-
eering of the /provi agree 0.85% 2,300 Yes ding Yes
rtive princi 7.58 14th , 073
Techn Asteel ding ment to the
servic ples 2022
ology Group servic price agree
es
Co., es ment
Ltd
Anste Purch Execu
Both Accep
el asing Relate te
belon ting Mark Dece
constr goods d accor
g to suppo et 10,10 mber 2022-
uction /provi agree 0.17% 5,500 Yes ding Yes
Anste rtive princi 6.07 14th , 073
group ding ment to the
el servic ples 2022
co., servic price agree
Group es
ltd es ment
Contr
olling
Benxi share Purch Execu
Accep
Iron holde asing Relate te
ting Mark Dece
and r of goods d accor
suppo et 3,551. 10,00 mber 2022-
Steel paren /provi agree 0.06% No ding Yes
rtive princi 25 0 14th , 073
Group t ding ment to the
servic ples 2022
Co., comp servic price agree
es
Ltd any es ment
Benxi Purch Execu
Accep
Iron asing Relate te
Paren ting Mark Dece
and goods d accor
t suppo et 32,96 35,00 mber 2022-
Steel /provi agree 0.57% No ding Yes
comp rtive princi 4.18 0 14th , 073
(Grou ding ment to the
any servic ples 2022
p) Co., servic price agree
es
Ltd. es ment
Liaoni
ng Purch Execu
Accep
hengt Same asing Relate te
ting Mark Dece
ai paren goods d accor
suppo et 6,692. mber 2022-
heavy t /provi agree 0.11% 5,000 Yes ding Yes
rtive princi 86 14th , 073
machi comp ding ment to the
servic ples 2022
nery any servic price agree
es
co., es ment
ltd
Purch Execu
North Both Accep
asing Relate te
Heng belon ting Mark Dece
goods d accor
da g to suppo et 10,73 mber 2022-
/provi agree 0.18% 3,000 Yes ding Yes
logisti Benga rtive princi 4.06 14th , 073
ding ment to the
cs co., ng servic ples 2022
servic price agree
ltd Group es
es ment
Liaoni Same Purch Accep Mark Relate Execu Dece
1,610. 2022-
ng paren asing ting et d 0.03% 1,000 Yes te Yes mber
62 073
Metall t goods suppo princi agree accor 14th ,
105
Bengang Steel Plates Co., Ltd. 2023 Annual Report
urgica comp /provi rtive ples ment ding 2022
l any ding servic price to the
Techn servic es agree
ician es ment
Colleg
e
Benxi
Iron
and
Steel Purch Execu
Both Accep
(Grou asing Relate te
belon ting Mark Dece
p) goods d accor
g to suppo et 351.9 mber 2022-
New /provi agree 0.01% 7,000 No ding Yes
Anste rtive princi 1 14th , 073
Enter ding ment to the
el servic ples 2022
prise servic price agree
Group es
Devel es ment
opme
nt Co.,
Ltd.
Anste Purch Execu
Both Accep
el asing Relate te
belon ting Mark Dece
Group goods d accor
g to suppo et 10,82 23,00 mber 2022-
Auto /provi agree 0.19% No ding Yes
Anste rtive princi 1.5 0 14th , 073
matio ding ment to the
el servic ples 2022
n Co., servic price agree
Group es
Ltd es ment
Delin
dry Purch Execu
Both Accep
port asing Relate te
belon ting Mark Dece
suppl goods d accor
g to suppo et 63,77 mber 2022-
y /provi agree 1.09% 0 Yes ding Yes
Anste rtive princi 1.14 14th , 073
chain ding ment to the
el servic ples 2022
servic servic price agree
Group es
e co., es ment
ltd
Benxi
Iron
and
Steel Purch Execu
Accep
(Grou Same asing Relate te
ting Mark Dece
p) paren goods d accor
suppo et 6,885. mber 2022-
Machi t /provi agree 0.12% 8,000 No ding Yes
rtive princi 04 14th , 073
nery comp ding ment to the
servic ples 2022
Manu any servic price agree
es
factur es ment
ing
Co.,
Ltd.
Anste
el
Purch Execu
Kurita Both Accep
asing Relate te
(Ansh belon ting Mark Dece
goods d accor
an) g to suppo et mber 2022-
/provi agree 0 0.00% 1,200 No ding Yes
Water Anste rtive princi 14th , 073
ding ment to the
Treat el servic ples 2022
servic price agree
ment Group es
es ment
Co.,
Ltd.
106
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Anste
el
Indust
rial
Group
Purch Execu
(Ansh Both Accep
asing Relate te
an) belon ting Mark Dece
goods d accor
Equip g to suppo et mber 2022-
/provi agree 0 0.00% 1,000 No ding Yes
ment Anste rtive princi 14th , 073
ding ment to the
Opera el servic ples 2022
servic price agree
tion Group es
es ment
and
Maint
enanc
e Co.,
Ltd.
Other Purch Execu
Both Accep
subsid asing Relate te
belon ting Mark Dece
iaries goods d accor
g to suppo et 1,966. mber 2022-
of /provi agree 0.03% 2,100 No ding Yes
Anste rtive princi 31 14th , 073
Anste ding ment to the
el servic ples 2022
el servic price agree
Group es
Group es ment
Anste
el
Lianzh
Purch Execu
ong Both
asing Purch Relate te
(Guan belon Mark Dece
goods asing d accor
gzhou g to et 16,00 mber 2022-
/provi steel agree 0 0.00% No ding Yes
) Anste princi 0 14th , 073
ding produ ment to the
Stainl el ples 2022
servic cts price agree
ess Group
es ment
Steel
Co.,
Ltd.
Sellin Execu
North Both
g Relate te
Heng belon Mark Dece
goods Sellin d accor
da g to et 393,1 200,0 mber 2022-
/provi g agree 6.80% Yes ding Yes
logisti Benga princi 41.41 00 14th , 073
ding goods ment to the
cs co., ng ples 2022
servic price agree
ltd Group
es ment
Delin
dry Sellin Execu
Both
port g Relate te
belon Mark Dece
suppl goods Sellin d accor
g to et 81,63 190,0 mber 2022-
y /provi g agree 1.41% No ding Yes
Anste princi 2.15 00 14th , 073
chain ding goods ment to the
el ples 2022
servic servic price agree
Group
e co., es ment
ltd
Sellin Execu
Benxi Both
g Relate te
Beijin belon Mark Dece
goods Sellin d accor
g Iron g to et 47,46 180,0 mber 2022-
/provi g agree 0.82% No ding Yes
and Benga princi 9.02 00 14th , 073
ding goods ment to the
Steel ng ples 2022
servic price agree
(Grou Group
es ment
107
Bengang Steel Plates Co., Ltd. 2023 Annual Report
p) Co.,
Ltd.
Anste
Sellin Execu
el Both
g Relate te
chemi belon Mark Dece
goods Sellin d accor
cal g to et 15,68 150,0 mber 2022-
/provi g agree 0.27% No ding Yes
techn Anste princi 0.19 00 14th , 073
ding goods ment to the
ology el ples 2022
servic price agree
co., Group
es ment
ltd
Zhejia
Sellin Execu
ng
g Relate te
Jingru joint Mark Dece
goods Sellin d accor
i steel stock et 130,0 mber 2022-
/provi g agree 0 0.00% No ding Yes
proce comp princi 00 14th , 073
ding goods ment to the
ssing any ples 2022
servic price agree
co.,
es ment
ltd
Sellin Execu
Both
Anste g Relate te
belon Mark Dece
el goods Sellin d accor
g to et 131.7 10,00 mber 2022-
steel /provi g agree 0.00% No ding Yes
Anste princi 4 0 14th , 073
co., ding goods ment to the
el ples 2022
ltd servic price agree
Group
es ment
Benxi
Iron Sellin Execu
and Same g Relate te
Mark Dece
Steel paren goods Sellin d accor
et 69,76 79,00 mber 2022-
(Grou t /provi g agree 1.21% No ding Yes
princi 5.14 0 14th , 073
p) comp ding goods ment to the
ples 2022
Minin any servic price agree
g Co., es ment
Ltd.
Anste
el
Group Sellin Execu
Both
Intern g Relate te
belon Mark Dece
ationa goods Sellin d accor
g to et 25,00 30,00 mber 2022-
l /provi g agree 0.43% No ding Yes
Anste princi 2.24 0 14th , 073
Econo ding goods ment to the
el ples 2022
mic servic price agree
Group
Trade es ment
Co.,
Ltd.
Anste
el Sellin Execu
Both
Steel g Relate te
belon Mark Dece
Distri goods Sellin d accor
g to et 917.2 36,00 mber 2022-
butio /provi g agree 0.02% No ding Yes
Anste princi 9 0 14th , 073
n ding goods ment to the
el ples 2022
(Hefei servic price agree
Group
) Co., es ment
Ltd.
Anste Both Sellin Sellin Mark Relate Execu Dece
5,510. 30,00 2022-
el belon g g et d 0.10% No te Yes mber
35 0 073
Steel g to goods goods princi agree accor 14th ,
108
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Distri Anste /provi ples ment ding 2022
butio el ding price to the
n Group servic agree
(Wuh es ment
an)
Co.,
Ltd.
Anste
el
Steel
Proce Sellin Execu
Both
ssing g Relate te
belon Mark Dece
and goods Sellin d accor
g to et 1,046. 30,00 mber 2022-
Distri /provi g agree 0.02% No ding Yes
Anste princi 99 0 14th , 073
butio ding goods ment to the
el ples 2022
n servic price agree
Group
(Zhen es ment
gzhou
) Co.,
Ltd.
Anste
el Sellin Execu
Both
green g Relate te
belon Mark Dece
resou goods Sellin d accor
g to et 13,39 25,00 mber 2022-
rces /provi g agree 0.23% No ding Yes
Anste princi 2.28 0 14th , 073
techn ding goods ment to the
el ples 2022
ology servic price agree
Group
co., es ment
ltd
Benxi
Iron
and Sellin Execu
Steel Same g Relate te
Mark Dece
(Grou paren goods Sellin d accor
et 9,419. 15,00 mber 2022-
p) t /provi g agree 0.16% No ding Yes
princi 12 0 14th , 073
Metall comp ding goods ment to the
ples 2022
urgica any servic price agree
l Slag es ment
Co.,
Ltd.
Benxi
Iron
and
Steel Sellin Execu
(Grou Same g Relate te
Mark Dece
p) paren goods Sellin d accor
et 6,672. 10,00 mber 2022-
Ther t /provi g agree 0.12% No ding Yes
princi 22 0 14th , 073
mal comp ding goods ment to the
ples 2022
Power any servic price agree
Devel es ment
opme
nt Co.,
Ltd.
Benxi Sellin Relate Execu
Paren Mark Dece
Iron g Sellin d te
t et 723.9 mber 2022-
and goods g agree 0.01% 2,000 No accor Yes
comp princi 1 14th , 073
Steel /provi goods ment ding
any ples 2022
(Grou ding price to the
109
Bengang Steel Plates Co., Ltd. 2023 Annual Report
p) Co., servic agree
Ltd. es ment
Benxi
Iron
Sellin Execu
and
Same g Relate te
Steel Mark Dece
paren goods Sellin d accor
(Grou et 489.5 10,00 mber 2022-
t /provi g agree 0.01% No ding Yes
p) princi 5 0 14th , 073
comp ding goods ment to the
Const ples 2022
any servic price agree
ructio
es ment
n Co.,
Ltd.
Benxi
Iron
and
Steel Sellin Execu
(Grou Same g Relate te
Mark Dece
p) paren goods Sellin d accor
et 1,296. mber 2022-
Machi t /provi g agree 0.02% 9,400 No ding Yes
princi 25 14th , 073
nery comp ding goods ment to the
ples 2022
Manu any servic price agree
factur es ment
ing
Co.,
Ltd.
Anste
el
Steel
Sellin Execu
Proce Both
g Relate te
ssing belon Mark Dece
goods Sellin d accor
and g to et 7,257. mber 2022-
/provi g agree 0.13% 8,000 No ding Yes
Distri Anste princi 52 14th , 073
ding goods ment to the
butio el ples 2022
servic price agree
n Group
es ment
(Dalia
n) Co.,
Ltd.
Chang
chun
FAW
Anste Sellin Execu
Both
el g Relate te
belon Mark Dece
Steel goods Sellin d accor
g to et 196.9 mber 2022-
Proce /provi g agree 0.00% 5,000 No ding Yes
Anste princi 9 14th , 073
ssing ding goods ment to the
el ples 2022
and servic price agree
Group
Distri es ment
butio
n Co.,
Ltd
Liaoni
Sellin Execu
ng Both
g Relate te
hengt belon Mark Dece
goods Sellin d accor
ong g to et 17,43 mber 2022-
/provi g agree 0.30% 5,000 Yes ding Yes
metall Benga princi 8.9 14th , 073
ding goods ment to the
urgica ng ples 2022
servic price agree
l Group
es ment
equip
110
Bengang Steel Plates Co., Ltd. 2023 Annual Report
ment
manu
factur
ing
co.,
ltd
Benxi
Iron
and
Sellin Execu
Steel
Same g Relate te
(Grou Mark Dece
paren goods Sellin d accor
p) et 3,927. mber 2022-
t /provi g agree 0.07% 5,000 No ding Yes
Indust princi 58 14th , 073
comp ding goods ment to the
rial ples 2022
any servic price agree
Devel
es ment
opme
nt Co.,
Ltd.
Anste
el
Steel
Proce Sellin Execu
Both
ssing g Relate te
belon Mark Dece
and goods Sellin d accor
g to et 2,451. mber 2022-
Distri /provi g agree 0.04% 4,300 No ding Yes
Anste princi 39 14th , 073
butio ding goods ment to the
el ples 2022
n servic price agree
Group
(Chan es ment
gchun
) Co.,
Ltd.
Anste
el
Sheny
Sellin Execu
ang Both
g Relate te
steel belon Mark Dece
goods Sellin d accor
proce g to et mber 2022-
/provi g agree 0 0.00% 3,000 No ding Yes
ssing Anste princi 14th , 073
ding goods ment to the
and el ples 2022
servic price agree
distrib Group
es ment
ution
co.,
ltd
Guan
gzhou Sellin Execu
Both
Anste g Relate te
belon Mark Dece
el goods Sellin d accor
g to et 1,251. mber 2022-
steel /provi g agree 0.02% 3,000 No ding Yes
Anste princi 05 14th , 073
proce ding goods ment to the
el ples 2022
ssing servic price agree
Group
co., es ment
ltd
Anste Both Sellin Execu
Relate
el belon g Mark te Dece
Sellin d
energ g to goods et 2,318. accor mber 2022-
g agree 0.04% 2,700 No Yes
y Anste /provi princi 38 ding 14th , 073
goods ment
techn el ding ples to the 2022
price
ology Group servic agree
111
Bengang Steel Plates Co., Ltd. 2023 Annual Report
co., es ment
ltd
Sellin Execu
Dalian
Same g Relate te
Boluol Mark Dece
paren goods Sellin d accor
e steel et 1,611. mber 2022-
t /provi g agree 0.03% 2,000 No ding Yes
pipe princi 43 14th , 073
comp ding goods ment to the
co., ples 2022
any servic price agree
ltd
es ment
Panzh
ong
yihon Sellin Execu
Both
g g Relate te
belon Mark Dece
metal goods Sellin d accor
g to et mber 2022-
produ /provi g agree 0 0.00% 1,000 No ding Yes
Anste princi 14th , 073
cts ding goods ment to the
el ples 2022
(Chon servic price agree
Group
gqing) es ment
co.,
ltd
Benxi
Iron
and
Steel
(Grou Sellin Execu
Both
p) g Relate te
belon Mark Dece
Minin goods Sellin d accor
g to et 205.2 mber 2022-
g /provi g agree 0.00% 1,000 No ding Yes
Benga princi 3 14th , 073
Yanjia ding goods ment to the
ng ples 2022
gou servic price agree
Group
Limes es ment
tone
Mine
Co.,
Ltd.
Suzho
Sellin Execu
u
g Relate te
Longb joint Mark Dece
goods Sellin d accor
en stock et mber 2022-
/provi g agree 0 0.00% 1,000 No ding Yes
metal comp princi 14th , 073
ding goods ment to the
mater any ples 2022
servic price agree
ial co.,
es ment
ltd
Panzh
ihua
Iron
and
Sellin Execu
Steel Both
g Relate te
Group belon Mark Dece
goods Sellin d accor
Jiangy g to et 1,485. mber 2022-
/provi g agree 0.03% Yes ding Yes
ou Anste princi 23 14th , 073
ding goods ment to the
Great el ples 2022
servic price agree
Wall Group
es ment
Specia
l Steel
Co.,
Ltd
112
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Anste
el
Group Sellin Execu
Both
Energ g Relate te
belon Mark Dece
y goods Sellin d accor
g to et 1,077. mber 2022-
Saving /provi g agree 0.02% Yes ding Yes
Anste princi 86 14th , 073
Techn ding goods ment to the
el ples 2022
ology servic price agree
Group
Servic es ment
e Co.,
Ltd
Other Sellin Execu
Both
subsid g Relate te
belon Mark Dece
iaries goods Sellin d accor
g to et 1,610. mber 2022-
of /provi g agree 0.03% 2,200 No ding Yes
Anste princi 38 14th , 073
Anste ding goods ment to the
el ples 2022
el servic price agree
Group
Group es ment
Benxi
Iron Sellin Execu
Provid
and Same g Relate te
ing Mark Dece
Steel paren goods d accor
suppo et mber 2022-
(Grou t /provi agree 0 0.00% 1,000 No ding Yes
rtive princi 14th , 073
p) comp ding ment to the
servic ples 2022
Minin any servic price agree
es
g Co., es ment
Ltd
Contr
olling
Benxi share Sellin Execu
Provid
Iron holde g Relate te
ing Mark Dece
and r of goods d accor
suppo et mber 2022-
Steel paren /provi agree 0 0.00% 8,000 No ding Yes
rtive princi 14th , 073
Group t ding ment to the
servic ples 2022
Co., comp servic price agree
es
Ltd any es ment
3,077,
4,287,
Total -- -- 776.5 -- -- -- -- -- --
550
1
Details of any sales return of a large
N/A
amount
Illustration of the actual situation during
the reporting period where a forecast had
been made by type for the total amounts
N/A
of routine related transactions which
would occur during the reporting period(if
any)
Reason for any significant difference
between the transaction price and the N/A
market price for reference (if applicable)
2. Related transactions relevant to asset acquisition or sold
□Applicable Not applicable
113
Bengang Steel Plates Co., Ltd. 2023 Annual Report
There was no related transaction relevant to asset acquisition or sale during the reporting period.
3. Related transactions relevant to joint investments
□Applicable Not applicable
There was no related transaction relevant to joint investments during the reporting period.
4. Credits and liabilities with related parties
□Applicable Not applicable
There were no credits and liabilities with related parties.
5. Transactions with related financial companies
Applicable □Not applicable
Deposit business
Amount for this period
Maximum Beginning Total deposit Total amount Closing
daily deposit Deposit rate balance amount for withdrawn in balance
Related party Relationship
limit (RMB range (RMB the current the current (RMB
10,000) 10,000) period (RMB period (RMB 10,000)
10,000) 10,000)
Ansteel
Both belong
Group 13,291,179.1 13,359,533.2
to Ansteel 450,000 1.9% 107,491.85 39,137.76
Finance Co., 9 9
Group
Ltd.
Loan business
Amount for this period
Total
Beginning Total loan Closing
Loan amount repayment
Loan interest balance amount for balance
Related party Relationship (RMB amount for
rate range (RMB the current (RMB
10,000) the current
10,000) period (RMB 10,000)
period (RMB
10,000)
10,000)
Credit or other financial business
Actual amount (RMB
Related party Relationship Business type Total (RMB 10,000)
10,000)
Ansteel Finance Co., Belong to Ansteel Other financial
2,027 2,027
Ltd. Group business
6. Transactions between financial companies controlled by the Company and related parties
□Applicable Not applicable
There were no deposit business, loan business, credit or other financial business between financial companies controlled by the
Company and related parties.
7. Other significant related transactions
□Applicable Not applicable
114
Bengang Steel Plates Co., Ltd. 2023 Annual Report
During the reporting period, the Company had no other significant related transactions.
XV. Major contracts and their performance
1. Trusteeship, contracting and lease
(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 category Lease income of this year Lease income of last year
Plants and ancillary
Ansteel Tendering Co., Ltd.
facilities 255,045.87
Bengang Tendering Co., Plants and ancillary
Ltd. facilities 250,917.43
Benxi Iron and Steel
Plants and ancillary
(Group) Equipment 217,960.00
facilities
Engineering Co., Ltd
Company as the lessee:
Account this year Account last year
Leas
Simplifi Variable Simplifi Variable
e Incre
ed lease Interest ed lease Interest Increase
capit ase
Lessor Rental payments Rent expense on Rental paymen Rent expense on right-of-
al right-
expens not paid lease expense ts not paid lease use
cate of-
e for included liabilities for included liabilities assets
gory use
short- in the short- in the
115
Bengang Steel Plates Co., Ltd. 2023 Annual Report
term measurem asset term measure
leases ent of s leases ment of
and lease and lease
leases liabilities leases liabilities
of low- of low-
value value
assets assets
Lan
d
use
right
Benxi 7,66
Steel 9,06 27,7
55,251
& Iron 8.17 16,9 39,000,108. 39,600,209.
,233.3
(Grou m2. 30.8 00 28
9
p) Co., Land 8
Ltd. use
right
42,9
20.0
0 m2.
2300
Hot
rollin
Benxi g
Steel prod
8,04 16,098
& Iron uct 7,740,688.6 7,982,648.9
2,37 ,161.0
(Grou line, 8 6
2.92 6
p) Co., relat
Ltd. ed
real
estat
e
1780
Hot
Benxi rollin
Beiyin g
g Iron prod
12,397
and uct 5,961,443.4 6,147,787.6
,899.0
Steel line, 0 8
9
(Grou relat
p) Co., ed
Ltd. real
estat
e
Land
Benga use
ng right 4,88
2,449,918.8 9,945, 2,666,923.9
Group 728, 6,07
0 423.08 2
Co., 282. 7.60
Ltd. 30
m2
North Real
ern estat
Heng e of
da offic
Logisti e
116
Bengang Steel Plates Co., Ltd. 2023 Annual Report
cs Co., area 120,596
Ltd. s .33
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. Guarantee
□Applicable Not applicable
There was no guarantee during the reporting period.
3. Entrusting others for managing cash assets
(1) Entrusted finance
□Applicable Not applicable
There was no entrusted finance during the reporting period.
(2) Entrusted loans
□Applicable Not applicable
There were no entrusted loans during the reporting period.
4. Other major contracts
□Applicable Not applicable
There were no other major contracts during the reporting period.
XVI. Description of other major events
Applicable Not applicable
On June 20th , 2023, the Company published Great Assets Replacement and Related Transactions Plan. The Company intends to
conduct assets replacement Benxi Iron&Steel (Group) Co., Ltd. The assets intended to be purchased is 100% stock rights of Benxi
Iron&Steel (Group) Mining Industry Limited Liability Company; The assets intended to be sold are all assets and liabilities other than
retained assets and liabilities of listed company. The difference between assets intended to be purchased and assets intended to be
sold shall be compensated in cash by one party to the other. Currently, the Company is conducting further argument and coordination
towards the transaction plan and will hold a board meeting again to discuss after the confirmation of related items.
Mr. Liu Gang, the father of Company’s deputy general manager Mr. Liu Yansong, purchased and sold the Company’s stock from July
20th, 2023 to August 9th, 2023. Mr. Liu Gang has constituted a short term trading behavior according to relevant laws and regulations.
Mr. Liu Gang has handed in all the earnings from this short term trading to the Company. Mr. Liu Yansong and his father Mr. Liu Gang
have deeply recognized the severity of this event and have sent their apologies to the investors for the adverse influence brought by
this short term trading. They will reinforce learning of relevant laws and regulations in the future, strictly follow relevant regulations
in securities transaction to ensure that conditions of this kind will never happen again.
117
Bengang Steel Plates Co., Ltd. 2023 Annual Report
XVII. Major events of subsidiaries of the Company
Applicable Not applicable
The company transferred the 20 % equity transfer of the subsidiary Zhejiang Jingrui Steel Processing Co., Ltd.on February 28th , and
completed the business change on March 6th . At present, The company no longer holds the equity of Zhejiang Jingrui Steel
Processing Co., Ltd. This matter did not have a greater impact on the Company.
118
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Section VII. Status of Share Capital Changes and Shareholders
I. Share Capital Changes
1. Share capital changes
Unit: shares
Before the change Increase/decrease(+，-) After the change
Before Increase/ Before Increase/ Before Increase/
After the After the After the
the decrease( the decrease( the decrease(
change change change
change +，-) change +，-) change +，-)
I.
Restricted
shares
1. State
sharehold
ings
2.
State-
own Legal
person
sharehold
ing
3.
Other
domestic
sharehold
ings
Inclu
ding:
Domestic
legal
person
holding
Dom
estic
natural
person
holding
4.
Foreign
sharehold
ing
Inclu
ding:
Foreign
legal
person
holding
Forei
gn natural
person
holding
II. Un- 4,108,212 100.00% 7,085 7,085 4,108,219 100.00%
119
Bengang Steel Plates Co., Ltd. 2023 Annual Report
restricted ,217 ,302
shares
1.Com
mon 3,708,212 3,708,219
90.26% 7,085 7,085 90.26%
shares in ,217 ,302
RMB
2.
Foreign
400,000,0 400,000,0
shares in 9.74% 9.74%
00 00
domestic
market
3.
Foreign
shares in
foreign
market
4.
Other
III. Total 4,108,212 4,108,219
100.00% 7,085 7,085 100.00%
shares ,217 ,302
Causation of share capital changes
Applicable □Not applicable
During the reporting period, 925 convertible corporate bonds issued by the Company were converted into shares, and the total share
capital of the Company increased by 20,838 shares.
Status of approval of share capital changes
□Applicable Not applicable
Status of the registration process of transferred shares
□Applicable Not applicable
Influences of share capital changes on financial indices such as basic earnings per share, diluted earnings per share, and net asset per
share attributed to common shareholders in the most recent year and the most recent period
□Applicable Not applicable
Other information that the Company deems necessary to be disclosed or required by the authority
□Applicable Not applicable
2. Changes of restricted shares
□Applicable Not applicable
II. Securities issuance and listing
1. Status of security issuance (excluding preferred shares) during the reporting period
□Applicable Not applicable
2. Status of total shares and shareholder change and assets and liability structure change
□Applicable Not applicable
120
Bengang Steel Plates Co., Ltd. 2023 Annual Report
3. Status of existing internal employee shares
□Applicable Not applicable
121
Bengang Steel Plates Co., Ltd. 2023 Annual Report
III. Shareholders and actual controllers
1. Number of shareholders and their shareholding of the Company
Unit: shares
The total
Total number of
shareholde preferred
Total
rs at the shareholde
number of Total preferred
end of the rs voting
common shareholders at the end of
previous rights
shareholde the previous month from
49,067 month 49,197 restored at 0 0
rs at the the date of disclosing the
from the the end of
end of the annual report (refer to
date of the
reporting Notes 8)
disclosing reporting
period
the annual period (if
report any) (refer
to Notes 8)
Shareholding of shareholders holding more than 5% or top 10 shareholders
Number of Number of pledged,
Name of Nature of Shareholdi shares held Changes marked or frozen shares
Un-
the the ng at the end during the Restricted
restricted
shareholde shareholde percentage of the reporting shares held
shares held Status Number
r r (%) reporting period
period
Benxi Steel State- 110,000,00
Pledged
& Iron owned 2,409,628, 2,409,628, 0
58.65% 0 0
(Group) legal 094 094 102,100,00
Frozen
Co., Ltd. person 0
Benxi Steel State-
& Iron owned 737,371,53 737,371,53 Not
17.95% 0 0 0
(Group) legal 2 2 applicable
Co., Ltd. person
Domestic
Not
Guan Hui natural 0.70% 28,730,000 2,760,000 0 28,730,000 0
applicable
person
Domestic
Not
Gao Tao natural 0.58% 23,750,000 750,000 0 23,750,000 0
applicable
person
Domestic
Zhang Not
natural 0.47% 19,149,967 0 0 19,149,967 0
Wenyou applicable
person
Hong Kong
Foreign
Securities Not
legal 0.35% 14,228,749 -2,865,981 0 14,228,749 0
Clearing applicable
person
Co., Ltd.
Basic
endowmen
Not
t insurance Other 0.25% 10,285,100 10,285,100 0 10,285,100 0
applicable
fund 804
portfolio
Domestic
Not
Jia Peng natural 0.23% 9,430,000 9,430,000 0 9,430,000 0
applicable
person
122
Bengang Steel Plates Co., Ltd. 2023 Annual Report
China
Universal
Asset
Manageme
Not
nt Co.,Ltd Other 0.22% 9,090,200 9,090,200 0 9,090,200 0
applicable
－Social
security
fund 423
portfolio
Domestic
Not
Zhou Wei natural 0.22% 8,996,300 -85,500 0 8,996,300 0
applicable
person
Strategy investors or
general legal persons
become top 10
None
shareholders due to
shares newly issued (if
any) (See Notes 3)
Benxi Iron and Steel (Group) Co., Ltd. has an associated relationship with Bengang Group Co., Ltd.,
and is a person acting in concert as stipulated in the Administrative Measures for the Acquisition of
Illustration of relationship
Listed Companies. The Company is not aware of whether there is an associated relationship
or “action in concert”
between other shareholders or whether they are persons acting in concert as stipulated in the
Administrative Measures for the Acquisition of Listed Companies.
Illustration of the above
shareholders involving
entrusting/entrusted Illustration of the above shareholders do not involve entrusting/ entrusted voting rights or
voting rights and abstention from voting rights
abstention from voting
rights
Special remarks for the
buy-back accounts of top
N/A
10 shareholders (if any)
(See Notes 10)
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
Quantity
shares
Common
Benxi Steel & Iron (Group) 2,409,628,
2,409,628,094 shares in
Co., Ltd. 094
RMB
Common
737,371,53
Begang Group Co., Ltd. 737,371,532 shares in
2
RMB
Common
Guan Hui 28,730,000 shares in 28,730,000
RMB
Common
Gao Tao 23,750,000 shares in 23,750,000
RMB
Common
Zhang Wenyou 19,149,967 shares in 19,149,967
RMB
Common
Hong Kong Securities
14,228,749 shares in 14,228,749
Clearing Company Ltd.
RMB
Basic endowment 10,285,100 Common 10,285,100
123
Bengang Steel Plates Co., Ltd. 2023 Annual Report
insurance fund 804 shares in
portfolio RMB
Common
Jia Peng 9,430,000 shares in 9,430,000
RMB
China Universal Asset
Common
Management Co.,Ltd－ China Universal Asset Management Co.,Ltd－Social security fund 423
shares in 9,090,200
Social security fund 423 portfolio
RMB
portfolio
Common
Zhou Wei 8,996,300 shares in 8,996,300
RMB
Illustration of relationship
or “action in concert” Benxi Iron and Steel (Group) Co., Ltd. has an associated relationship with Bengang Group Co., Ltd.,
among top 10 un- and is a person acting in concert as stipulated in the Administrative Measures for the Acquisition of
restricted shareholders, Listed Companies. The Company is not aware of whether there is an associated relationship
and between top 10 un- between other shareholders or whether they are persons acting in concert as stipulated in the
restricted shareholders Administrative Measures for the Acquisition of Listed Companies.
and top 10 shareholders
Illustration of top 10
Guan Hui holds 730,000 shares through an investor ordinary account and holds 28,000,000 shares
shareholders participating
through an investor credit securities account. Zhang Wenyou holds 19,149,967shares through an
in securities margin
investor credit securities account. Zhou Wei holds 164,500 shares through an investor ordinary
trading (if any) (see Notes
account and holds 8,831,800 shares through an investor credit securities account.
4)
The lending of shares for the top 10 shareholders participating in refinance business
□Applicable Not applicable
Changes of the top ten shareholders compared to that in the last period
Applicable Not applicable
Unit: Shares
Changes of the top ten shareholders compared to that at the end of last period
, The number of shares held by
The lent shares refinanced and the shareholders ' ordinary accounts, credit
Name of amount has not returned at the end of accounts and refinancing and lending
Newly-added/quit
shareholder (full the period shares not returned at the end of the
in this period
name) period
Total amount Percentage Total amount Percentage
Huatai Youyi No. 5
Mixed Pension
Quit 0 0.00% 0 0.00%
Product－China
Bank Co., Ltd.
CHINA
INTERNATIONAL
CAPITAL
Quit 0 0.00% 0 0.00%
CORPORATION
HONG KONG
SECURITIES LTD
Gao Tao Newly-added 0 0.00% 23,750,000 0.58%
Basic endowment
insurance fund Newly-added 0 0.00% 10,285,100 0.25%
804 portfolio
Jia Peng Newly-added 0 0.00% 9,430,000 0.23%
China Universal
Newly-added 0 0.00% 9,090,200 0.22%
Asset
124
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Management
Co.,Ltd － Social
security fund 423
portfolio
Whether the top 10 common shareholders and top 10 un-restricted common shareholders have buy-back agreement dealing during
the reporting period
□Yes No
The top 10 common shareholders and top 10 un-restricted common shareholders have no buy-back agreement dealing during the
reporting period.
2. Controlling shareholder
Nature of controlling shareholders: central state-owned holdings
Type of controlling shareholders: legal person
Legal
Name of the controlling Principal business
representative/person Date of incorporation Organization code
shareholder activities
in charge
Steel, iron smelting,
steel rolling processing,
metal material
manufacturing,
ferroalloy smelting,
heat production and
supply, metal cutting
processing services,
general equipment
manufacturing
(excluding special
equipment
manufacturing), goods
import and export,
office services, building
materials sales,
refractory materials
sales, refractory
Benxi Iron and Steel
Li Naiming July 10th , 1996 91210500119726263U materials production,
(Group) Co., Ltd.
instrumentation
manufacturing, natural
science research and
experimental
development,
professional design
services, industrial
design services,
information consulting
services (excluding
licensed information
consulting services),
property management,
productive scrap metal
recovery, renewable
resource recovery
(except productive
scrap metal),
125
Bengang Steel Plates Co., Ltd. 2023 Annual Report
renewable resource
processing, renewable
resource sales, non-
residential real estate
leasing, housing
leasing, asset
management services
invested by self-owned
funds, advertising
production, advertising
design, agency,
advertising release
(except for projects
subject to approval
according to law, carry
out business activities
independently
according to law with
business licenses)
Equity of the
controlling shareholder
in other
domestic/foreign listed
None
companies under its
control or participation
during the reporting
period
hanges of the controlling shareholder during the reporting period
□Applicable Not applicable
The controlling shareholder of the Company did not change during the reporting period.
3. Actual controller and concerted action person
Actual controller nature: Central State-owned Assets Management Agency
Actual controller type: Legal person
Legal
Name of the controlling Principal business
representative/person Date of incorporation Organization code
shareholder activities
in charge
Steel, iron, vanadium,
titanium, stainless
steel, special steel
production and
manufacturing,
nonferrous metal
production and
Ansteel Group Co., Ltd. Tan Chengxu July 28th, 2010 91210000558190456G manufacturing, steel
rolling processing, iron,
vanadium, titanium
and other non-ferrous
metal, nonmetallic
mining and
comprehensive
utilization, mining
126
Bengang Steel Plates Co., Ltd. 2023 Annual Report
auxiliary industry, clean
energy power
generation, sales of
coal and products,
chemical products and
gases (excluding
hazardous chemicals),
production and sales of
refractory materials,
industrial and mining
engineering,
metallurgical
engineering
construction,
engineering and
technical services,
equipment
manufacturing,
Internet of Things
information services,
energy conservation,
technical services of
environmental
protection, R&D of new
materials,
development of
renewable resources,
mechanical processing,
technology
development, transfer
and services,
transportation
services, real estate
development, urban
energy supply,
software and
information
technology services,
intelligent
manufacturing and
services, domestic and
foreign trade, financial
management, bidding
and tendering services,
medical and health
care services,
vocational skills
training, economic
information consulting
services, enterprise
management, hotel
and catering services,
operating of other
state-owned assets and
investments within the
scope authorized by
the State-owned Assets
Supervision and
127
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Administration
Commission of the
State Council;
operations of branches
include: newspaper
distribution,
publication printing,
packaging decoration
and other print
printing. (For projects
subject to approval
according to laws,
business activities can
only be carried out
after approval by
relevant departments.)
Equity of the
controlling shareholder
in other
During the reporting period, Ansteel Group Co., Ltd. indirectly held 53.45% of the shares of Ansteel
domestic/foreign listed
and indirectly held 49.67% of the shares of Pansteel Vanadium and Titanium.
companies under its
control during the
reporting period
Change of the actual controller during the reporting period
□Applicable Not applicable
There is no change of the Company’s actual controller during the reporting period.
Block diagram of the ownership and control relations between the Company and the actual controller
Whether the actual controller is controlling the Company through trusteeship or other asset management service
□Applicable Not applicable
4. Controlling shareholder or the largest shareholder and its concerted action person's cumulative pledged
shares accounting for 80% of the Company's shares held by them
□Applicable Not applicable
128
Bengang Steel Plates Co., Ltd. 2023 Annual Report
5. Shareholders holding more than 10% of the shares
□Applicable Not applicable
6. Share reduction limitation of controlling shareholders, actual controller, restructuring party and other
commitment subject
□Applicable Not applicable
IV. Implementation of share repurchase during the reporting period
Implementation progress of share repurchase
□Applicable Not applicable
Implementation progress of reducing share repurchase by centralized bidding
□Applicable Not applicable
129
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Section VIII. Preferred shares
□Applicable Not applicable
There were no preferred shares in the Company during the reporting period.
130
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Section IX. Bonds
Applicable □Not applicable
I. Corporate bonds
□Applicable Not applicable
There were no corporate bonds in the Company during the reporting period.
II. Company bonds
□Applicable Not applicable
There were no company bonds in the Company during the reporting period
III. Non-financial corporate debt financing instruments
□Applicable Not applicable
There were no non-financial corporate debt financing instruments in the Company during the reporting period.
IV. Company bonds
Applicable □Not applicable
1. Previous adjustment of conversion price
1. The initial conversion price of Bengang Convertible Bonds was RMB 5.03 per share.
2. Due to the Company's implementation of the 2020 annual equity distribution plan, the conversion price of Bengang Convertible
Bonds was adjusted to RMB 5.02 per share on July 19th, 2021.
3. Due to the Company's implementation of the 2021 mid-term equity distribution plan, the conversion price of Bengang Convertible
Bonds was adjusted to RMB 4.55 per share on October 13th, 2021.
4. Due to the Company's implementation of the 2021 annual equity distribution plan, the conversion price of Bengang Convertible
Bonds was adjusted to RMB 3.95 per share on October 13th, 2021.
131
2. Cumulative share conversion
Applicable Not applicable
Proportion
of the
Proportion
number of
Cumulative Cumulative of
Convertible Conversion Total Total converted Amount
amount of number of unconverte
bond beginning amount amount shares to not yet
shares shares d amount
abbreviatio and ending issued issued the total converted
converted converted to total
n date (bonds) (RMB) issued (RMB)
(RMB) (shares) issued
shares
amount
before
conversion
From
Bengang January 4th,
6,800,000, 1,168,975, 232,847,77 5,631,024,
Convertible 2021 to 68,000,000 6.01% 82.81%
000.00 900.00 0 100.00
Bonds June 28th,
2026
3. Top ten holders of convertible bonds
Number of Amount of Percentage of
Nature of convertible bonds convertible bonds convertible bonds
Convertible bond
No. convertible bond held at the end of held at the end of held at the end of
holders
holders the reporting the reporting the reporting
period (bonds) period (RMB) period
Agricultural Bank
of China Co., Ltd.-
Southern Xiyuan
1 Other 1,678,975 167,897,500.00 2.98%
Convertible Bond
Securities
Investment Fund
Bank of China
Limited-Nanfang
Changyuan
2 Other 1,651,138 165,113,800.00 2.93%
Convertible Bond
Securities
Investment Fund
Bank of China
Limited-E Fund
3 Steady Income Other 1,540,602 154,060,200.00 2.74%
Bond Securities
Investment Fund
China CITIC Group
Co., Ltd.
4 Enterprise Annuity Other 1,405,380 140,538,000.00 2.50%
Plan-CITIC Bank
Co., Ltd.
Industrial and
Commercial Bank
of China Limited-
5 Other 1,382,219 138,221,900.00 2.45%
Bosera Credit
Bond Investment
Fund
Auditor’s Report Page 1
Huaxia Fund
Longevity No.9
Fixed Income
6 Other 1,362,468 136,246,800.00 2.42%
Pension Product-
China Merchants
Bank Co., Ltd.
China
Construction Bank
Co., Ltd.-Huashang
7 Credit Other 1,093,427 109,342,700.00 1.94%
Enhancement
Bond Securities
Investment Fund
Pacific Asset
Management-
China Merchants
8 Bank-Pacific Other 938,925 93,892,500.00 1.67%
Zhuoyue
Convertible Bonds
Products
China
Construction Bank
Corporation-
9 Zheshang Fengli Other 800,000 80,000,000.00 1.42%
Enhanced Bond
Securities
Investment Fund
Industrial and
Commercial Bank
of China Limited
10 Enterprise Annuity Other 764,258 76,425,800.00 1.36%
Plan-China
Construction Bank
Corporation
4. Significant changes in the guarantor's profitability, asset condition and credit standing
□Applicable Not applicable
5. Liabilities and changes in credit at the end of the reporting period and cash arrangements
and debt repayment in future years
At the end of the reporting period, the Company's major accounting data and financial indicators and the
Company's credit rating of convertible bonds in the past two years have not changed this year.
V. Loss in the consolidation during the reporting period exceeding 10% of the net
assets at the end of the previous year
□Applicable Not applicable
VI. Overdue interest-bearing debts except for bonds at the end of the reporting
period
□Applicable Not applicable
Auditor’s Report Page 2
VII. Violation of rules and regulations during the reporting period
□Yes No
VIII. The main accounting data and financial indicators of the Company in the past
two years at the end of the reporting period
Unit: RMB 10,000
Item At the end of this period At the end of last period Change
Current ratio 0.70 0.81 -13.58%
Liabilities to Assets Ratio 61.89% 56.42% 5.47%
Quick ratio 0.27 0.21 28.57%
At the end of this period At the end of last period Change
Net profit after deducting
nonrecurring gains and losses -206,777.53 -139,183.79 10.89%
(RMB)
EBITDA total liabilities ratio 0.03% 0.11% -0.08%
Interest coverage ratio -2.43 -0.75 368.00%
Cash interest coverage ratio 9.07 3.68 146.47%
EBITDA interest coverage
1.12 2.39 -53.14%
ratio
Loan repayment rate 100.00% 100.00% 0.00%
Interest repayment rate 100.00% 100.00%
Auditor’s Report Page 3
Section X. Financial Report
Auditor’s Report
Xksbz[2024] No. ZG10444
To the Shareholders of Bengang Steel Plates Co., Ltd.:
I. Auditor’s Opinion
We have audited the financial statements of Bengang Steel Plates
Co., Ltd. (hereinafter referred to as “Bengang Steel Plates” ), which
comprise the consolidated and the parent company’s statement of
financial position as at December 31st , 2023, the consolidated and the
parent company’s income statement, the consolidated and the parent
company’s cash flow statement and the consolidated and the parent
company’s statement of changes in shareholders’ equity for the year 2023,
and the notes to the financial statements.
In our opinion, the accompanying financial statements were
prepared in accordance with Accounting Standards for Business
Enterprises in all material respects, and presented fairly the consolidated
and the parent company’s financial position of Bengang Steel Plates as of
December 31st, 2023, and the consolidated and the parent company’s
results of operations and cash flows for the year 2023.
II. Basis for Opinion
We conducted our audit in accordance with China Standards on
Auditing for Chinese Certified Public Accountants. Our responsibilities
under those standards are further described in the “Auditor’s
Responsibilities for the Audit of the Financial Statements” section of our
report. We are independent of Bengang Steel Plates in accordance with
the Code of Ethics for Chinese Certified Public Accountants, and we have
fulfilled our other ethical responsibilities of the code. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit.
III. Key Audit Matters
Auditor’s Report Page 4
Key audit matters are those matters that, in our professional
judgment, are considered to be most significant to the audit of the
financial statements for the period. These matters were addressed in the
context of our audit of the financial statements as a whole and, in forming
our audit opinion thereon, and we do not express a separate opinion on
these matters.
We have compiled key audition items identified during the audition
as follows:
Key Audit Matters Responses in the Audit
(I) Confirmation of Incomes
Please refer to the policies in Note The audit procedures we
(XXIII) of “III. Important accounting performed were as follows:
policies and accounting estimates”
and Note (XXXVIII) of “V. Notes (1) Understanding and testing key
consolidated financial report internal controls related to cash
items ” and cash equivalents and
evaluating whether the relevant
In the year 2023, the balance of controls are properly designed
income in the Consolidated and effectively implemented;
Statement of Financial Position of
Bengang Steel Plates was RMB (2) We have conducted analytical
57,814,969,400. We classified it as procedures on income, including
a key audit matter in view of the the comparison of the gross profit
high risk of the management of of the main products in the
misstate arising from the current period with the previous
significant changes in cash and period, the analysis of income
cash equivalents. fluctuations, and the inspection of
whether there are abnormalities ;
(3) Obtaining the sales details of
the year and select samples of the
revenue transactions recorded in
the year. Checking the supporting
documents such as sales
contracts, invoices, warehouse
receipts, and customs
declarations. Evaluating whether
the relevant revenue recognition
is in line with the Company 's
Auditor’s Report Page 5
accounting policies ;
(4) Selecting samples to check the
sales contract. Identifying the
contract terms and conditions
related to the transfer of
commodity control rights and
evaluating whether the income
recognition time point of Bengang
Plate Company meets the
requirements of enterprise
accounting standards ;
(5) In combination with the audit
procedure of accounts receivable,
the correspondence procedure is
performed to the sample
customers on the sales income
during the reporting period ;
(6) Examining sales to related
parties, review the fairness of
related party transaction prices,
and perform confirmation
procedures to related party
customers ;
(7) Checking whether the
information related to income
matters has been properly
presented and disclosed in the
financial statements.
(II) Provision for declines in inventory prices
Please refer to the policies in (XI) The audit procedures we
of “III. Important accounting performed were as follows:
policies and accounting estimates”
and Note (XXXVIII) of “V. Notes (1) Evaluating the design and
consolidated financial report operation of the internal control
items ” related to the inventory decline
st
On December 31 ,2023, the preparation of Bengang Steel
inventory amount in the Plates Co., Ltd.;
Auditor’s Report Page 6
consolidated financial statements
of Bengang Steel Plate Co., Ltd. (2) Monitoring the inventory of
was RMB7,782,548,800, the Bengang Steel Plates Co., Ltd.
inventory price reduction Checking the quantity and
preparation was RMB74,175,900, condition of inventory, and check
and the book value was the inventory with longer storage
RMB7,708,372,900. Inventory is age ;
measured by the method of cost
and net realizable value. Whether (3) Obtaining the calculation table
the provision for inventory of inventory price decline
depreciation is sufficient has a preparation of Bengang Steel
greater impact on financial Plates Co., Ltd. Checking whether
statements. the implementation of the
relevant accounting policies
The net realizable value of according to the steel plate.
Bengang Steel Plates Co., Ltd. is Checking the changes in the
determined by subtracting the current period of inventory
estimated sales price of inventory depreciation reserves accrued in
goods from the estimated sales the previous year, and analyzing
expenses and related taxes and whether the inventory
fees. depreciation reserves are
sufficient ;
The management estimates its
expected selling price based on the (4) Implementing the method of
state of the inventory goods, and inventory net realizable value test
the management needs to use and review the provision for
major judgments in the process of inventory depreciation. Testing
estimation. report and data integrity based.
The book value of the inventory as
on December 31st , 2023 was
significant and involved an
estimate of the net realisable
value, so we treated it as a key
audit matter.
IV. Other Information
The management of Bengang Steel Plates (hereinafter referred to as
the Management) is responsible for the other information. Other
Auditor’s Report Page 7
information includes the information covered in the 2023 Annual Report
of Bengang Steel Plates, but excludes the financial statements and our
auditor’s report.
Our opinion on the financial statements does not cover the other
information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears
to be materially misstated.
If, based on the work we have performed, we conclude that there is
a material misstatement of the other information, we are required to
report that fact. We have nothing to report in this regard.
V. Responsibilities of the Management and those charged with
governance for the financial statements
The Management is responsible for the preparation of the financial
statements in accordance with the provisions of the Accounting Standards
for Business Enterprises to achieve a fair presentation, and designing,
implementing and maintaining the necessary internal controls so that the
financial statements are free from material misstatement, whether due
to fraud or error.
In preparing the financial statements, the Management is
responsible for assessing the ability of Bengang Steel Plates to continue
as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
Management either intends to liquidate Bengang Steel Plates or to cease
operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the
financial reporting process of Bengang Steel Plates.
VI. Auditor’ s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance as to whether the
financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that
expresses our opinion. Although reasonable assurance is a high level of
assurance, it is not a guarantee that an audit conducted in accordance
Auditor’s Report Page 8
with auditing standards will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are generally
considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions that users of
the financial statements make on the basis of the financial statements.
During the course of the audit in accordance with auditing standards,
we exercise professional judgement and maintain professional skepticism.
We also carry out the following works:
(I) Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our audit. The risk of
not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal
control.
(II) Obtain an understanding of internal control relevant to the audit
in order to design audit procedures that are appropriate in the
circumstances.
(III) Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
the Management.
(IV) Conclude on the appropriateness of the Management’ s use of
the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the ability of Bengang Steel
Plates to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’ s
report to the related disclosures in the financial statements in accordance
with the auditing standards or, if such disclosures are inadequate, we shall
modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’ s report. However, future events
or conditions may cause Bengang Steel Plates to cease to continue as a
going concern.
(V) Evaluate the overall presentation, structure and content
(including disclosures) of the financial statements, and also whether the
financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.
(VI) Obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business activities within Bengang
Auditor’s Report Page 9
Steel Plates to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and
performance audit of the group. We remain solely responsible for our
audit opinion.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit and
significant audit findings etc., including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with those relevant ethical requirements
regarding independence, and to communicate with them all relationships
and other matters that may reasonably be thought to bear on our
independence and related safeguards, where applicable.
From the matters communicated with those charged with
governance, we determine those matters that were of most significance
in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation prohibited public disclosure
about the matter or when, in rare circumstances, we determine that a
matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the
public interest benefits of such communication.
Lixin Certified Public Accountants Co., Ltd.
(Special General Partnership)
Chinese Certified Public Accountant: Guo Shunxi
(Engagement partner)
Chinese Certified Public Accountant: Zhang Jiahui
Chinese Certified Public Accountant: Fu Yangyi
ShanhaiChina April 25th , 2024
Auditor’s Report Page 10
Bengang Steel Plates Co., Ltd.
Consolidated Balance Sheet
December 31, 2023
（Unless otherwise specified, all amounts are in RMB Yuan）
Assets Notes Closing balance Opening balance
Current assets
Cash and cash equivalents V. (I) 2,194,654,161.34 1,461,145,641.87
Seetlement provisions
Capital lent
Financial assets held for drading
Derivative financial assets
Notes receivable V. (II) 453,560,095.49 429,707,174.70
Accounts receivable V. (III) 1,328,532,598.47 897,230,896.06
Accounts receivable financing V. (IV) 806,822,622.43 137,591,996.02
Prepayments V. (V) 674,872,999.29 1,247,177,748.33
Premium receivable
Reinsurance accounts receivable
Receivable deposit for reinsurance contract
Other receivables V. (VI) 318,793,157.58 127,198,692.92
Redemptory financial assets for sale
Inventories V. (VII) 7,708,372,894.81 8,463,728,475.18
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets V. (VIII) 157,789,976.90 395,441,136.26
13,159,221,761.3
Total current assets 13,643,398,506.31
4
Non-current assets:
Loan and advances issued
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments V. (IX) 46,910,346.41 51,030,777.18
Other equity instrument investments V. (X) 974,463,039.83 1,020,418,482.31
Other non-current financial assets
Investment property
24,836,556,422.9
FIxed assets V. (XI) 25,028,192,964.67
0
Construction in progress V. (XII) 4,308,404,147.31 3,158,195,899.65
Productive biological assets
Oil and gas assets
Right-of-use assets V. (XIII) 1,319,616,179.37 1,379,990,713.89
Intangible assets V. (XIV) 256,020,436.13 262,784,937.41
Development expenditure
Goodwill
Long-term deffered expenses
Deferred tax assets V. (XV) 467,040,631.42 481,385,563.75
Other non-current assets V. (XVI) 137,933,599.61 110,065,560.68
31,300,428,357.7
Total non-current assets 32,538,581,344.75
7
44,459,650,119.1
Total assets 46,181,979,851.06
1
The attached Notes of Financial Report is a part of the Financial Report.
Legal representative: Chief Financial Officer: Chief Accountant:
Statement Page 1
Bengang Steel Plates Co., Ltd.
Consolidated Balance Sheet (Continued)
December 31, 2023
（Unless otherwise specified, all amounts are in RMB Yuan）
Assets Notes Closing balance Opening balance
Current liabilities:
Short-term loans V. (XVIII) 328,000,000.00 49,200,000.00
Loan from central bank
Loan from other banks
Financial liability held for trading
Derivative financial liabilities
Notes payable V. (XIX) 10,364,993,998.89 4,389,336,619.36
Accounts payable V. (XX) 2,809,435,260.77 3,696,420,463.85
Advance from customers
Contract liabilities V. (XXI) 3,303,108,592.38 3,794,115,592.29
Financial assets sold for repurchase
Deposits from customers and interbank
Receipt from vicariously traded securities
Receipt from vicariously underwriting securities
Employee benefits payable V. (XXII) 1,175,970.83 10,046,363.27
Taxes payable V. (XXIII) 55,402,959.11 44,392,920.78
Other payables V. (XXIV) 1,659,284,531.06 1,247,722,165.47
Handling charges and commission payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year V. (XXV) 685,881,691.76 2,586,250,886.43
Other current liability V. (XXVI) 392,122,093.59 493,235,027.03
Total current liabilities 19,599,405,098.39 16,310,720,038.48
Non-current liabilities:
Provision for insurance contract
Long-term loans V. (XXVII) 1,723,726,700.80 1,726,938,302.30
Bonds payable V. (XXVIII) 5,451,381,676.38 5,276,502,232.78
Including: Preferred stock
Perpetual bond
Leasing liabilities V. (XXIX) 1,342,427,252.45 1,384,348,462.18
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income V. (XXX) 136,084,955.18 42,377,015.51
Deferred tax liabilities V. (XV) 329,914,385.19 345,024,987.48
Other non-current liabilities
Total non-current liabilities 8,983,534,970.00 8,775,191,000.25
Total liabilities 28,582,940,068.39 25,085,911,038.73
Owners' equity:
Share capital V. (XXXI) 4,108,219,302.00 4,108,212,217.00
Other equity instruments V. (XXXII) 947,858,134.16 947,863,834.02
Including: Preferred stock
Perpetual bond
Capital reserves V. (XXXIII) 13,272,225,870.92 13,272,205,160.21
Less: Capital reserves
Other comprehensive income V. (XXXIV) -50,371,341.88 -15,904,760.02
Special reserves V. (XXXV) 54,843.15 2,217,913.77
Surplus reserves V. (XXXVI) 1,195,116,522.37 1,195,116,522.37
General risk reserve
Undistributed profits V. (XXXVII) -2,463,133,834.65 -720,559,670.73
Total equity attributable to owners of the parent
17,009,969,496.07 18,789,151,216.62
company
Non-controlling interests 589,070,286.60 584,587,863.76
Total owners' equity 17,599,039,782.67 19,373,739,080.38
Total of liabilities and owners' equity 46,181,979,851.06 44,459,650,119.11
The attached Notes of Financial Report is a part of the Financial Report.
Legal representative: Chief Financial Officer: Chief Accountant:
Statement Page 2
Bengang Steel Plates Co., Ltd.
Statement of financial position of the parent company
December 31, 2023
（Unless otherwise specified, all amounts are in RMB Yuan）
Assets Notes Closing balance Opening balance
Current assets:
Cash and cash equivalents 2,084,382,077.60 585,125,555.12
Cash and cash equivalents
Derivative financial assets
Notes receivable 613,514,613.02 669,193,401.02
Notes receivable XIV. (I) 1,243,326,802.56 931,035,796.58
Accounts receivable financing 664,669,952.97 127,468,835.80
Prepayments 735,940,974.41 1,247,084,271.88
Other receivables XIV. (II) 604,535,173.18 150,724,545.56
Inventories 6,726,641,809.04 6,988,993,205.61
Contract assets
Assets held for sale
Non-current assets due within one year
Non-current assets due within one year 82,661,697.57 310,293,996.25
11,009,919,607.8
Total current assets 12,712,971,194.62
2
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments XIV. (III) 2,269,191,936.65 2,270,277,904.85
Other equity instrument investments 974,463,039.83 1,020,418,482.31
Other non-current financial assets
Investment property
23,777,736,434.3
Fixed assets 24,052,882,215.31
9
Construction in progress 4,275,801,115.73 3,127,247,793.98
Productive biological assets
Oil and gas assets
Right-of-use assets 1,319,616,179.37 1,379,990,713.89
Intangible assets 170,176,158.95 174,295,096.19
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets 465,645,459.77 460,123,889.23
Other non-current assets 131,159,433.56 110,065,560.68
32,320,155,875.5
Total non-current assets 33,658,935,539.17
2
43,330,075,483.3
Total assets 46,371,906,733.79
4
Statement Page 3
The attached Notes of Financial Report is a part of the Financial Report.
Legal representative: Chief Financial Officer: Chief Accountant:
Statement Page 4
Bengang Steel Plates Co., Ltd.
Statement of financial position of the parent company (Continued)
December 31, 2023
（Unless otherwise specified, all amounts are in RMB Yuan）
Liabilities and owners' equity Notes Closing balance Opening balance
Current liabilities:
Short-term loans 328,000,000.00 49,200,000.00
Financial liability held for trading
Derivative financial liabilities
Notes payable 10,361,392,779.12 3,982,738,952.59
Accounts payable 3,190,842,780.56 3,821,848,200.25
Advance from customers
Contract liabilities 4,903,008,138.37 4,805,281,178.80
Employee benefits payable 9,901,551.31
Taxes payable 30,105,183.40 22,518,649.65
Other payables 1,656,804,114.53 861,392,691.88
Liabilities held for sale
Non-current liabilities due within one year 685,881,691.76 2,586,250,886.43
Other current liabilities 79,447,326.71 624,686,553.24
16,763,818,664.1
Total current liabilities 21,235,482,014.45
5
Non-current liabilities:
Long term loans 1,723,726,700.80 1,726,938,302.30
Bonds payable 5,451,381,676.38 5,276,502,232.78
Including: Preferred stock
Perpetual bond
Lease liabilities 1,342,427,252.45 1,384,348,462.18
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income 136,084,955.18 42,377,015.51
Deferred tax liabilities 329,914,385.19 345,024,987.48
Other non-current liabilities
Total non-current liabilities 8,983,534,970.00 8,775,191,000.25
25,539,009,664.4
Total liabilities 30,219,016,984.45
0
Shareholder' s equity:
Share capital 4,108,219,302.00 4,108,212,217.00
Other equity instruments 947,858,134.16 947,863,834.02
Other equity instruments
Perpetual bond
12,852,053,478.0
Capital reserves 12,852,074,188.80
9
Less: Treasury shares
Other comprehensive income -50,371,341.88 -15,904,760.02
Special reserves 3,681.16 58,212.15
Surplus reserves 1,195,116,522.37 1,195,116,522.37
Undistributed profits -2,900,010,737.27 -1,296,333,684.67
17,791,065,818.9
Total owners' equity 16,152,889,749.34
4
Total liabilities and owners' equity 46,371,906,733.79 43,330,075,483.3
Statement Page 5
Liabilities and owners' equity Notes Closing balance Opening balance
4
The attached Notes of Financial Report is a part of the Financial Report.
Legal representative: Chief Financial Officer: Chief Accountant:
Statement Page 6
Bengang Steel Plates Co., Ltd.
Consolidated income statement
FY2023
（Unless otherwise specified, all amounts are in RMB Yuan）
Item Notes Closing balance Opening balance
I. Total operating income 57,814,969,351.65 62,616,621,627.60
Including: Operating income V. (XXXVIII) 57,814,969,351.65 62,616,621,627.60
Interest income
Premium earned
Income from handling charges and commission
II. Total operating cost 59,689,287,769.42 63,838,504,250.02
Including: Operating cost V. (XXXVIII) 58,326,286,006.53 62,259,334,854.72
Interest expense
Expenditure for handling charges and commission
Surrender value
Net expenditure for compensation
Net provision for insurance contract appropriated
Bonus payment for policy
Reinsurance premium
Tax and surcharges V. (XXXIX) 211,561,623.25 206,440,870.56
Selling and distribution expenses V. (XL) 159,034,136.51 128,489,696.80
General and administrative expenses V. (XLI) 601,859,503.43 663,080,654.45
Research and development expenses V. (XLII) 81,247,560.73 58,088,008.14
Financial expenses V. (XLIII) 309,298,938.97 523,070,165.35
Including: Interest expense 415,219,929.72 599,359,597.96
Interest income 54,957,360.07 80,619,490.18
Add: Other income V. (XLIV) 79,554,896.45 72,300,830.48
Income on investment (“-” for loss) V. (XLV) -2,827,424.32 89,589,183.44
Including: Income from associates and joint ventures -1,085,968.20 -181,084.64
Income from derecognition of financial assets measured at
amortized cost
Exchange gains (“-” for loss)
Net exposure hedge income (“-” for loss)
Gains from change of fair value (“-” for loss)
Credit impairment loss (“-” for loss) V. (XLVI) 10,043,277.55 -4,366,027.94
Assets impairment loss (“-” for loss) V. (XLVII) -35,339,403.25 -33,475,219.25
Assets disposal gains (“-” for loss) V. (XLVIII) 298,940,955.41 3,648,546.62
III. Operational profit(“-” for loss) -1,523,946,115.93 -1,094,185,309.07
Add: Non-operating income V. (XLIX) 43,395,135.36 40,130,944.39
Less: Non-operating expenses V. (L) 95,059,082.07 26,623,177.77
IV. Total profit (“-” for loss) -1,575,610,062.64 -1,080,677,542.45
Less: Income tax expenses V. (LI) 94,460,782.09 125,374,177.41
V. Net profit(“-” for loss) -1,670,070,844.73 -1,206,051,719.86
(I) Classification by continuing operating
1. Net profit from continuing operation(“-” for loss) -1,670,070,844.73 -1,206,051,719.86
2. Net profit from discontinued operation(“-” for loss)
(II) Classification by ownership
1. Net profit attributable to the owners of parent company -1,742,574,163.92 -1,232,976,557.37
2. Net profit attributable to non-controlling shareholders 72,503,319.19 26,924,837.51
VI. Net after-tax amount of other comprehensive income -34,466,581.86 -15,879,343.62
Other comprehensive income attributable to owners of the parent
-34,466,581.86 -15,879,343.62
company after tax
（ I ） Other comprehensive income items that will not be
-34,466,581.86 -15,879,343.62
reclassified into gains/losses
1. Re-measurement of defined benefit plans of changes in net
debt or net assets
2. Other comprehensive income under the equity method cannot
be reclassified into profit or loss
3. Changes in fair value of investments in other equity
-34,466,581.86 -15,879,343.62
instruments
4. Changes in fair value of Company's credit risk
（II）Other comprehensive income that will be reclassified into
profit or loss
1. Other comprehensive income under the equity method which
can be reclassified into profit or loss
2. Changes in fair value of other debt investments
3. Amount of financial assets reclassified into other
comprehensive income
4. Credit impairment provision of other debt investments
5. Cash flow hedge reserves
6. Translation differences in foreign currency financial
statements
7. Others
Other comprehensive income attributable to non-controlling
shareholders’ equity after tax
VII. Total comprehensive income -1,704,537,426.59 -1,221,931,063.48
Total comprehensive income attributable to the owner of the
-1,777,040,745.78 -1,248,855,900.99
parent company
Total comprehensive income attributable to non-controlling
72,503,319.19 26,924,837.51
shareholders
VIII. Earnings per share
（I）Basic earnings per share -0.42 -0.30
（II）Diluted earnings per share -0.42 -0.30
Statement Page 7
The attached Notes of Financial Report is a part of the Financial Report.
Legal representative: Chief Financial Officer: Chief Accountant:
Statement Page 8
Bengang Steel Plates Co., Ltd.
Income statement of the parent company
FY2023
（Unless otherwise specified, all amounts are in RMB Yuan）
Item Notes Closing balance Opening balance
I. Operating income XIV. (IV) 58,186,982,131.76 63,081,757,089.14
Less: Operating cost XIV. (IV) 59,293,494,660.13 63,165,254,867.80
Tax and surcharges 160,404,863.00 157,419,976.34
Selling and distribution expenses 143,971,980.36 162,072,670.40
General and administrative expenses 577,042,517.96 579,730,173.82
Research and development expenses 81,247,560.73 58,088,008.14
Financial expenses 320,034,306.92 523,903,605.28
Including: Interest expense 413,822,456.17 580,671,493.79
Interest income 40,683,621.30 59,532,341.41
Add: Other income 78,279,172.38 71,247,038.47
Income on investment (“-” for loss) XIV. (V) 461,590,550.66 260,636,435.24
Including: Income from associates and joint
-1,085,968.20 -580,788.56
ventures
Income from derecognition of financial
assets measured at amortized cost
Net exposure hedge income ("-" for loss)
Gains from change of fair value ("-" for loss)
Credit impairment loss ("-" for loss) 12,829,866.46 -4,244,546.20
Assets impairment loss ("-" for loss) -35,339,403.25 -33,475,219.25
Assets disposal gains ("-" for loss) 298,940,955.41 3,669,258.68
II. Operational profit ("-" for loss) -1,572,912,615.68 -1,266,879,245.70
Add: Non-operating income 42,653,931.69 32,814,019.52
Less: Non-operating expenses 94,106,015.35 26,463,198.79
III. Total profit ("-" for loss) -1,624,364,699.34 -1,260,528,424.97
Less: Income tax expenses -20,687,646.74 59,489,282.29
IV. Net profit (“-” for loss) -1,603,677,052.60 -1,320,017,707.26
（I）Net profit from continuing operation ("-"
-1,603,677,052.60 -1,320,017,707.26
for loss)
（II）Net profit from discontinued operation
("-" for loss)
V. Net after-tax amount of other comprehensive
-34,466,581.86 -15,904,760.02
income
（I）Other comprehensive income items that
-34,466,581.86 -15,904,760.02
will not be reclassified into gains/losses
1. Re-measurement of defined benefit plans
of changes
2. Other comprehensive income under the
equity method cannot be reclassified into profit
or loss
3. Changes in fair value of investments in
-34,466,581.86 -15,904,760.02
other equity instruments
4. Changes in fair value of Company's credit
risk
（II） Other comprehensive income that will
be reclassified into profit or loss
1. Other comprehensive income under the
equity method investee can be reclassified into
profit or loss
2. Changes in fair value of other debt
investments
3. Amount of financial assets reclassified into
other comprehensive income
4. Credit impairment provision of other debt
investments
5. Cash flow hedge reserves
6. Translation differences in foreign currency
financial statements
7. Others
VI. Total comprehensive income -1,638,143,634.46 -1,335,922,467.28
Statement Page 9
Item Notes Closing balance Opening balance
VII. Earnings per share
（I） Basic earnings per share
（II）Diluted earnings per share
The attached Notes of Financial Report is a part of the Financial Report.
Legal representative: Chief Financial Officer: Chief Accountant:
Statement Page 10
Bengang Steel Plates Co., Ltd.
Consolidated cash flow statement
FY2023
（Unless otherwise specified, all amounts are in RMB Yuan）
Amounts incured in Amounts incured in
Item Notes
current period prior period
I. Cash flow from operating activities
Cash received from sale of goods or rendering of services 54,782,375,927.56 51,073,772,028.16
Net increase of customers' deposit and interbank deposit
Net increase of loan from central bank
Net increase of loans from other financial institutions
Cash received for premium of original insurance contract
Net cash received for reinsurance business
Net increase of deposit and investment of the insured
Cash from receiving interest, handling charge and
commission
Net increase of loans from borrowing funds
Net increase of fund for repurchase business
Net cash received from traded securities
Tax rebate received 208,015,496.04 483,849,940.14
Other cash received relating to operating activities V. (LII) 284,021,616.81 123,009,781.28
Subtotal of cash inflows from operating activities 55,274,413,040.41 51,680,631,749.58
Cash paid for goods and services 47,499,784,626.09 46,861,851,072.12
Net increase of customer' s loan and advances
Net increase of deposit in central bank and interbank
deposit
Cash for payment of compensation for original insurance
contract
Net increase in capital lent
Cash for payment of interest, handling charge and
commission
Cash for payment of policy bonus
Cash paid to and on behalf of employees 2,504,872,313.64 2,802,982,355.80
Cash paid for all types of taxes 521,328,876.71 651,109,945.61
Other cash paid relating to operating activities V. (LII) 419,075,965.67 88,325,410.49
Subtotal of cash outflows from operating activities 50,945,061,782.11 50,404,268,784.02
Net cash flows from operating activities 4,329,351,258.30 1,276,362,965.56
II. Cash flows from investing activities
Cash received from disposal of investments 1,843,800.00 422,818.29
Cash received from return on investments 896,200.00 2,879,850.07
Net cash received from disposal of fixed assets, intangible
85,057,599.66 4,752,720.71
assets and other long-term assets
Net cash received from disposal of subsidiary and other
137,073,256.40
operating units
Other cash paid relating to investing activities
Subtotal of cash inflows from investing activities 87,797,599.66 145,128,645.47
Cash paid for acquisition of fixed assets, intangible assets
993,323,275.09 1,707,467,068.85
and other long-term assets
Cash paid for investments
Net increase of mortgage loan
Net cash received from subsidiary and other operating
unit
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities 993,323,275.09 1,707,467,068.85
Net cash flows from investing activities -905,525,675.43 -1,562,338,423.38
III. Cash flows from financing activities
Proceeds from investment
Including: Proceeds from the investment of non-
controlling shareholders of the subsidiary
Proceeds from borrowings 1,570,000,000.00 2,000,000,000.00
Other proceeds relating to financing activities V. (LII) 1,128,377,111.10 2,759,751,595.78
Subtotal of cash inflows from financing activities 2,698,377,111.10 4,759,751,595.78
Cash repayments of borrowings 3,947,582,606.32 6,245,551,350.67
Cash payments for the distribution of dividends, profit or
279,847,394.73 2,765,916,748.51
interest expenses
Including: Cash paid to non-controlling shareholders as
68,041,170.80
dividends and profit by subsidiaries
Other cash payments relating to financing activities V. (LII) 2,040,131,865.19 485,930,596.70
Subtotal of cash outflows from financing activities 6,267,561,866.24 9,497,398,695.88
Statement Page 11
Amounts incured in Amounts incured in
Item Notes
current period prior period
Net cash flows from financing activities -3,569,184,755.14 -4,737,647,100.10
IV. Effect of foreign exchange rate changes on cash and
33,471,460.59 21,186,177.64
cash equivalents
V. Net increase in cash and cash equivalents -111,887,711.68 -5,002,436,380.28
Add: Cash and cash equivalents at the beginning of the
1,296,662,683.20 6,299,099,063.48
period
VI. Cash and cash equivalents at the end of the period 1,184,774,971.52 1,296,662,683.20
The attached Notes of Financial Report is a part of the Financial Report.
Legal representative: Chief Financial Officer: Chief Accountant:
Statement Page 12
Bengang Steel Plates Co., Ltd.
Cash flow statement of parent company
FY2023
（Unless otherwise specified, all amounts are in RMB Yuan）
Amounts incured in Amounts incured in
Item Notes
current period prior period
I. Cash flow from operating activities
Cash received from the sale of goods or the
54,729,135,209.16 52,566,695,245.11
rendering of services
Tax rebate received 182,654,395.44 446,252,731.21
Other cash received relating to operating activities 313,226,321.84 95,185,405.62
Subtotal of cash inflows from operating activities 55,225,015,926.44 53,108,133,381.94
Cash paid for goods and services 47,458,464,490.84 48,331,653,935.65
Cash paid to and on behalf of employees 2,350,688,837.49 2,666,197,042.40
Cash paid for all types of taxes 227,899,745.84 339,347,119.05
Other cash paid relating to operating activities 383,220,547.63 114,224,449.37
Subtotal of cash outflows from operating activities 50,420,273,621.80 51,451,422,546.47
Net cash flows from operating activities 4,804,742,304.64 1,656,710,835.47
II. Cash flows from investing activities
Cash received from disposal of investments
Cash received from return on investments 204,123,512.41 56,019,227.23
Net cash received from disposal of fixed assets,
85,053,599.66 4,341,972.00
intangible assets and other long-term assets
Net cash received from disposal of subsidiary and
205,076,325.08
other operating units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 289,177,112.07 265,437,524.31
Cash paid for acquisition of fixed assets, intangible
989,247,449.99 1,698,674,088.11
assets and other long-term assets
Cash paid for investments 850,000,000.00
Net cash paid for acquisition of subsidiary and
other operating unit
Other cash paid relating to investing activities
Subtotal of cash outflows paid for investing activities 989,247,449.99 2,548,674,088.11
Net cash flows from investing activities -700,070,337.92 -2,283,236,563.80
III. Cash flows from financing activities
Cash flows from financing activities
Cash received from borrowings 1,570,000,000.00 2,000,000,000.00
Other cash received relating to financing activities 1,128,377,111.10 2,759,751,595.78
Subtotal of cash inflows from financing activities 2,698,377,111.10 4,759,751,595.78
Cash repayments of borrowings 3,947,582,606.32 5,545,551,350.67
Cash payments for distribution of dividends, profit
211,806,223.93 2,750,764,581.84
or interest
Other cash payments relating to financing activities 2,022,320,452.46 485,930,596.70
Subtotal of cash outflows from financing activities 6,181,709,282.71 8,782,246,529.21
Net cash flows from financing activities -3,483,332,171.61 -4,022,494,933.43
IV. Effect of foreign exchange rate changes on cash
32,520,496.22 20,787,925.20
and cash equivalents
V. Net increase in cash and cash equivalents 653,860,291.33 -4,628,232,736.56
Add: Cash and cash equivalents at the beginning of
420,642,596.45 5,048,875,333.01
the period
VI. Cash and cash equivalents at the ending of the 1,074,502,887.78 420,642,596.45
Statement Page 13
Amounts incured in Amounts incured in
Item Notes
current period prior period
period
The attached Notes of Financial Report is a part of the Financial Report.
Legal representative: Chief Financial Officer: Chief Accountant:
Statement Page 14
Bengang Steel Plates Co., Ltd.
Consolidated statement of changes in owners’ equity
FY2023
（Unless otherwise specified, all amounts are in RMB Yuan）
FY2023
Equity attributable to owners of the parent company
Item Other equity instruments Less: Other General Non-controlling Total of owners'
Share capital Preference Perpetual Capital reserves Treasury comprehensive Special reserves Surplus reserves risk Undistributed profit Subtotal interest equity
Others
shares bond shares income reserve
I. Closing balance of the prior year 4,108,212,217.00 947,863,834.02 13,272,205,160.21 -15,904,760.02 2,217,913.77 1,195,116,522.37 -720,559,670.73 18,789,151,216.62 584,587,863.76 19,373,739,080.38
Add: Change of accounting
policies
Correction of prior-period
errors
Business consolidation under
common control
Others
II. Opening balance of the current
4,108,212,217.00 947,863,834.02 13,272,205,160.21 -15,904,760.02 2,217,913.77 1,195,116,522.37 -720,559,670.73 18,789,151,216.62 584,587,863.76 19,373,739,080.38
year
III. Changes in current year ("-" for
7,085.00 -5,699.86 20,710.71 -34,466,581.86 -2,163,070.62 -1,742,574,163.92 -1,779,181,720.55 4,482,422.84 -1,774,699,297.71
decrease)
（ I ） Total comprehensive
-34,466,581.86 -1,742,574,163.92 -1,777,040,745.78 72,503,319.19 -1,704,537,426.59
income
（ II ） Capital increase and
7,085.00 -5,699.86 20,710.71 22,095.85 22,095.85
decrease by owners
1. Common share invested by
shareholders
2. Capital input by the holder of
7,085.00 -5,699.86 20,710.71 22,095.85 22,095.85
other equity instruments
3. Share-based payment
attributable to shareholders'
equity
4. Others
（III）Profit distribution -68,041,170.80 -68,041,170.80
1. Appropriation to surplus
reserves
2. Appropriation to general risk
reserve
3. Profit distribution to owners
-68,041,170.80 -68,041,170.80
(or shareholders)
4. Others
（ IV ） Internal transfer of
owners' equity
1. Capital reserve converted
into capital (or share capital)
2. Surplus reserve converted
Statement Page 15
FY2023
Equity attributable to owners of the parent company
Item Other equity instruments Less: Other General Non-controlling Total of owners'
Share capital Preference Perpetual Capital reserves Treasury comprehensive Special reserves Surplus reserves risk Undistributed profit Subtotal interest equity
Others
shares bond shares income reserve
into capital (or share capital)
3. Recover of loss by surplus
reserve
4. Changes in defined benefit
plans carried forward to retained
earnings
5. Other comprehensive income
carried forward to retained
earnings
6. Others
（V）Special reserves -2,163,070.62 -2,163,070.62 20,274.45 -2,142,796.17
1. Withdrawn in current period 77,964,469.55 77,964,469.55 4,945,238.85 82,909,708.40
2. Used in current period 80,127,540.17 80,127,540.17 4,924,964.40 85,052,504.57
（VI）Others
IV. Closing balance of the current
4,108,219,302.00 947,858,134.16 13,272,225,870.92 -50,371,341.88 54,843.15 1,195,116,522.37 -2,463,133,834.65 17,009,969,496.07 589,070,286.60 17,599,039,782.67
period
The attached Notes of Financial Report is a part of the Financial Report.
Legal representative: Chief Financial Officer: Chief Accountant:
Statement Page 16
Bengang Steel Plates Co., Ltd.
Consolidated statement of changes in owners’ equity (Continued)
FY2023
（Unless otherwise specified, all amounts are in RMB Yuan）
FY2023
Equity attributable to owners of the parent company
Item Other equity instruments Less: Other General Non-controlling Total of owners'
Share capital Preference Perpetual Capital reserves Treasury comprehensive Special reserves Surplus reserves risk Undistributed profit Subtotal interest equity
Others
shares bond shares income reserve
I. Closing balance of the prior year 4,108,191,379.00 947,882,663.63 13,272,134,173.09 337,978.57 1,195,116,522.37 2,977,306,297.64 22,500,969,014.30 565,441,001.73 23,066,410,016.03
Add: Change of accounting policies
Correction of prior-period errors
Business consolidation under
common control
Others
II. Opening balance of the current year 4,108,191,379.00 947,882,663.63 13,272,134,173.09 337,978.57 1,195,116,522.37 2,977,306,297.64 22,500,969,014.30 565,441,001.73 23,066,410,016.03
III. Changes in current year ("-" for
20,838.00 -18,829.61 70,987.12 -15,904,760.02 1,879,935.20 -3,697,865,968.37 -3,711,817,797.68 19,146,862.03 -3,692,670,935.65
decrease)
（I） Total comprehensive income -15,879,343.62 -1,232,976,557.37 -1,248,855,900.99 26,924,837.51 -1,221,931,063.48
（II）Capital increase and decrease by
20,838.00 -18,829.61 70,987.12 72,995.51 -7,777,975.48 -7,704,979.97
owners
1. Common share invested by
shareholders
2. Capital input by the holder of other
20,838.00 -18,829.61 70,987.12 72,995.51 72,995.51
equity instruments
3. Share-based payment attributable
to shareholders' equity
4. Others -7,777,975.48 -7,777,975.48
（III）Profit distribution -2,464,914,827.40 -2,464,914,827.40 -2,464,914,827.40
1. Appropriation to surplus reserves
2. Appropriation to general risk
reserve
3. Profit distribution to owners (or
-2,464,914,827.40 -2,464,914,827.40 -2,464,914,827.40
shareholders)
4. Others
（ IV ） Internal transfer of owners'
-25,416.40 25,416.40
equity
1. Capital reserve converted into
capital (or share capital)
2. Surplus reserve converted into
capital (or share capital)
3. Recover of loss by surplus reserve
Statement Page 17
FY2023
Equity attributable to owners of the parent company
Item Other equity instruments Less: Other General Non-controlling Total of owners'
Share capital Preference Perpetual Capital reserves Treasury comprehensive Special reserves Surplus reserves risk Undistributed profit Subtotal interest equity
Others
shares bond shares income reserve
4. Changes in defined benefit plans
carried forward to retained earnings
5. Other comprehensive income
-25,416.40 25,416.40
carried forward to retained earnings
6. Others
（V） Special reserves 1,879,935.20 1,879,935.20 1,879,935.20
1. Withdrawn in current period 77,018,511.80 77,018,511.80 4,978,649.22 81,997,161.02
2. Used in current period 75,138,576.60 75,138,576.60 4,978,649.22 80,117,225.82
（VI）Others
IV. Closing balance of the current period 4,108,212,217.00 947,863,834.02 13,272,205,160.21 -15,904,760.02 2,217,913.77 1,195,116,522.37 -720,559,670.73 18,789,151,216.62 584,587,863.76 19,373,739,080.38
The attached Notes of Financial Report is a part of the Financial Report.
Legal representative: Chief Financial Officer: Chief Accountant:
Statement Page 18
Bengang Steel Plates Co., Ltd.
Parent company's statement of changes in owners' equity
FY2023
（Unless otherwise specified, all amounts are in RMB Yuan）
FY2023
Other equity instruments
Pref
Less: Other
Item eren Perpe
Share capital Capital reserves Treasury comprehensive Special reserves Surplus reserves Undistributed profit Total of owers' equity
ce tual Others
shares income
shar bond
es
I. Closing balance of the prior year 4,108,212,217.00 947,863,834.02 12,852,053,478.09 -15,904,760.02 58,212.15 1,195,116,522.37 -1,296,333,684.67 17,791,065,818.94
Add: Change of accounting policies
Correction of prior-period errors
Others
II. Opening balance of the current year 4,108,212,217.00 947,863,834.02 12,852,053,478.09 -15,904,760.02 58,212.15 1,195,116,522.37 -1,296,333,684.67 17,791,065,818.94
III. Changes in current period ("-" for decrease) 7,085.00 -5,699.86 20,710.71 -34,466,581.86 -54,530.99 -1,603,677,052.60 -1,638,176,069.60
(I) Total comprehensive income -34,466,581.86 -1,603,677,052.60 -1,638,143,634.46
(II) Capital increase and decrease by owners 7,085.00 -5,699.86 20,710.71 22,095.85
1. Common share invested by owners
2. Capital input by the holder of other equity
7,085.00 -5,699.86 20,710.71 22,095.85
instruments
3. Share-based payment attributable to owners’ equity
4. Others
(III) Profit distribution
1. Appropriation to surplus reserves
2. Profit distribution to owners (or shareholders)
3. Others
(IV) Internal transfer of owners' equity
1. Capital reserve converted into capital (or share
capital)
2. Surplus reserve converted into capital (or share
capital)
3. Recover of loss by surplus reserve
4. Changes in defined benefit plans carried forward to
retained earnings
5. Other comprehensive income carried forward to
retained earnings
6. Others
(V) Special reserves -54,530.99 -54,530.99
1. Withdrawn in current period 63,360,278.27 63,360,278.27
Statement Page 19
FY2023
Other equity instruments
Pref
Less: Other
Item eren Perpe
Share capital Capital reserves Treasury comprehensive Special reserves Surplus reserves Undistributed profit Total of owers' equity
ce tual Others
shares income
shar bond
es
2. Used in current period 63,414,809.26 63,414,809.26
(VI) Others
IV. Closing balance of the current period 4,108,219,302.00 947,858,134.16 12,852,074,188.80 -50,371,341.88 3,681.16 1,195,116,522.37 -2,900,010,737.27 16,152,889,749.34
The attached Notes of Financial Report is a part of the Financial Report.
Legal representative: Chief Financial Officer: Chief Accountant:
Statement Page 20
Bengang Steel Plates Co., Ltd.
Parent company's statement of changes in owners' equity (Continued)
FY2023
（Unless otherwise specified, all amounts are in RMB Yuan）
FY2022
Other equity instruments Less:
Other
Item Preferen Treas
Share capital Perpetu Capital reserves comprehensive Special reserves Surplus reserves Undistributed profit Total of owners' equity
ce Others ury
al bond income
shares shares
4,108,191,379.0
I. Closing balance of the prior year 947,882,663.63 12,851,982,490.97 155,469.58 1,195,116,522.37 2,491,021,746.82 21,594,350,272.37
0
Add: Change of accounting policies
Correction of prior-period errors
Others
4,108,191,379.0
II. Opening balance of the current year 947,882,663.63 12,851,982,490.97 155,469.58 1,195,116,522.37 2,491,021,746.82 21,594,350,272.37
0
III. Changes in current period ("-" for decrease) 20,838.00 -18,829.61 70,987.12 -15,904,760.02 -97,257.43 -3,787,355,431.49 -3,803,284,453.43
(I) Total comprehensive income -15,904,760.02 -1,320,017,707.26 -1,335,922,467.28
(II) Capital increase and decrease by owners 20,838.00 -18,829.61 70,987.12 -2,422,896.83 -2,349,901.32
1. Common share invested by owners
2. Capital input by the holder of other equity
20,838.00 -18,829.61 70,987.12 72,995.51
instruments
3. Share-based payment attributable to
owners' equity
4. Others -2,422,896.83 -2,422,896.83
(III) Profit distribution -2,464,914,827.40 -2,464,914,827.40
1. Appropriation to surplus reserves
2. Profit distribution to owners (or
-2,464,914,827.40 -2,464,914,827.40
shareholders)
3. Others
(IV) Internal transfer of owners' equity
1. Capital reserve converted into capital (or
share capital)
2. Surplus reserve converted into capital (or
share capital)
3. Recover of loss by surplus reserve
4. Changes in defined benefit plans carried
forward to retained earnings
Statement Page 21
FY2022
Other equity instruments Less:
Other
Item Preferen Treas
Share capital Perpetu Capital reserves comprehensive Special reserves Surplus reserves Undistributed profit Total of owners' equity
ce Others ury
al bond income
shares shares
5. Other comprehensive income carried
forward to retained earnings
6. Others
(V) Special reserves -97,257.43 -97,257.43
1. Withdrawn in current period 60,105,371.53 60,105,371.53
2. Used in current period 60,202,628.96 60,202,628.96
(VI) Others
4,108,212,217.0
IV. Closing balance of the current period 947,863,834.02 12,852,053,478.09 -15,904,760.02 58,212.15 1,195,116,522.37 -1,296,333,684.67 17,791,065,818.94
0
The attached Notes of Financial Report is a part of the Financial Report.
Legal representative: Chief Financial Officer: Chief Accountant:
Statement Page 22
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Bengang Steel Plates Co., Ltd.
FY 2023 Notes of Financial Report
（Unless otherwise specified, all amounts are in RMB Yuan）
I. Basic Information of the Company
Bengang Steel Plates Co., Ltd. (hereinafter referred to as “Bengang Steel Plates” or “the
Company” ), as approved in Liao-Zheng (1997) No. 57 by Liaoning People’s Government
on March 27th, 1997, was incorporated as a joint stock limited company through public
share offer of domestic listed foreign currency denominated shares (B shares) in the
People’s Republic of China (the “PRC”) on June 27th, 1997 by Benxi Steel & Iron (Group)
Co., Ltd. (“Benxi Iron and Steel Group"), through reorganization of operations, assets and
liabilities of its plants, namely, Steel Smelting Plant, Primary Rolling Plant and Continuous
Hot Rolling Plant.
As approved by China Securities Regulatory Commission (hereinafter referred to as “the
CSRC”), the Company issued 400,000,000 B-shares at HKD 2.38 each on Shenzhen Stock
Exchange on June 10th, 1997. On November 3rd, 1997, the Company issued another
120,000,000 A-shares (Renminbi Common Shares) at RMB 5.40 each and listed on
Shenzhen Stock Exchange since January 15th, 1998. The capital shares totalled
1,136,000,000 shares.
On March 14th, 2006, according to the resolutions of the Shareholders’ Meeting regarding
share equity relocation, the Share Equity Relocation Scheme, Response to Bengang Steel
Plates Co., Ltd. about Share Equity Relocation issued by Liaoning Provincial Government
State-owned Asset Administrative Committee(hereinafter referred to as the Liaoning
SASAC), Benxi Iron and Steel Group – the only holder of non-negotiable state-owned legal
person shares paid the consideration to the current shareholders to obtain the current
option for the 40,800,000 shares of the total 616,000,000 shares it was holding.
Shareholding positions have been registered with China Securities Depository & Clearing
Corporation Ltd. Shenzhen Office. However, the total amount of capital shares of Bengang
Steel Plates Co., Ltd. was not changed through the share equity relocation action.
According to the approval document “Zheng-Jian-Gong-Si-Zi [2006] No. 126” by China
Securities Regulatory Commission on June 30th, 2006, the Company was approved to
place 2 billion Renminbi common shares, particularly to Benxi Iron and Steel Group and
Notes of Financial Report Page 1
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
the proceeds would be used to purchase the related assets of the Benxi Iron and Steel
Group. On the same day, Benxi Iron and Steel Group received circular Zheng-Jian-Gong-Si-
Zi [2006] No. 127 issued by China Securities Regulatory Committee, On the same day, Benxi
Iron and Steel Group obtained the document "Zheng Jian Company Zi (2006) No. 127"
issued by the China Securities Regulatory Commission, which agreed to exempt Benxi Iron
and Steel Group from the acquisition of 2 billion new shares issued by the Company,
resulting in the number of shares held by the Company reaching 2.5752 billion shares
(accounting for the Company's 82.12% of the total share capital) to fulfill the tender offer
obligation. On August 28th, 2006, as approved by China Securities Depository & Clearing
Corporation Ltd. Shenzhen Office, the registration and conditional placing procedures of
the 2 billion new shares were completed. On September 28th, 2006, the listing procedure
of the new shares of Bengang Steel Plates in this non-public offering was approved by
Shenzhen Stock Exchange. The issue price of new shares: RMB 4.6733 per share.
Approved by the China Securities Regulatory Commission [2017] No. 1476, Bengang Steel
Plates Co., Ltd. privately placed no more than 739,371,534 RMB ordinary shares (A shares)
to no more than 10 issuers. The non-public offering was completed on February 9th, 2018,
and 739,371,532 shares were actually issued. The placing price was RMB5.41 per share.
On August 20th, 2021, Liaoning Provincial State-owned Assets Supervision and
Administration Commission (hereinafter referred to as the Liaoning SASAC) and Ansteel
Group Co., Ltd. (hereinafter referred to as Ansteel Group) signed the "Liaoning Provincial
People's Government State-owned Assets Supervision and Administration Commission
and Ansteel Group Co., Ltd. on Free Transfer Agreement on the State-owned Equity of
Bengang Group Co., Ltd. According to the agreement, Liaoning State-owned Assets
Supervision and Administration Commission will transfer its 51% shares of Bengang Group
Co., Ltd. (hereinafter referred to as Bengang Group) to Ansteel Group for free. After the
completion of the free transfer, Ansteel Group will become the controlling shareholder of
Bengang Group, and Ansteel Group will hold 81.07% of the total share capital of Bengang
Group Co., Ltd. indirectly.
As at December 31st, 2022, the capital shares totalled 4,108,212,217 shares. The Company’
s uniform social credit code: 91210000242690243E.
Company registered address: No. 16, Renmin Road Pingshan District Benxi, Liaoning
Notes of Financial Report Page 2
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Province; Company legal representative: Li Yan.
Bengang Steel Plates Co., Ltd. belongs to the ferrous metal smelting and rolling processing
industry and is mainly involved in producing and trading of ferrous metal products.
These financial statements were presented as approved by the Board of Directors of the
Company on April 25th , 2024.
II. Basis of preparation of financial report
(I) Basis of Preparation
The Company’s financial statements have prepared in accordance with the Accounting
Standards for Business Enterprises-Basic Standards promulgated by the Ministry of
Finance and various specific accounting standards, guidelines for the application of
accounting standards for business enterprises, explanations of accounting standards for
business enterprises and other relevant provisions (hereinafter collectively referred to as
"Accounting Standards for Business Enterprises"), as well as the relevant provisions of the
China Securities Regulatory Commission's Rules for the Compilation and Reporting of
Information Disclosure by Companies Offering Securities to the Public No.15-General
Provisions for Financial Reports.
(II) Going concern
The Company is operating normally and in a good condition
III. Significant accounting policies and accounting estimates
The disclosed contents below consist of specific accounting policy and accounting
estimation of this company in accordance with actual production and management
features. For details, see Note “Ⅲ (X) Financial Tools”, “Ⅲ (XI) Inventories”, “Ⅲ (XIV) Fixed
Assets”, “Ⅲ (XVII) Intangible Assets” and “Ⅲ (XXIII) Income”.
(I) Statement of compliance with China Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of
Accounting Standards for Business Enterprises and give a true and complete picture of the
financial position of the Company merger on December 31th, 2023 and the parent
company and the operating results and cash flows of the merger company and parent
company in 2023.
Notes of Financial Report Page 3
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(II) Accounting year
The Accounting year is from January 1st to December 31st.
(III) Operating period
The operating period is 12 months
(IV) Functional currency
The Company’s functional currency is RMB
(V) The accounting treatment for Business combinations under/not under common control
Business combination under common control: The assets and liabilities that the Company
acquired in a business combination shall be measured on the basis of their carrying
amount of acquiree’s assets, liabilities (as well as the goodwill arising from the business
combination) in the consolidated financial statement of the ultimate controller on the
combining date. As for the balance between the carrying amount of the net assets
obtained by the Company and the carrying amount of the consideration paid by it (or the
total par value of the shares issued), the capital reserve needs to be adjusted. If the capital
reserve is not sufficient, any excess shall be adjusted against retained earnings.
Business combination not under common control: The Company shall, on the acquisition
date, measure the assets given and liabilities incurred or assumed by an enterprise for a
business combination in light of their fair values, and shall record the balances between
them and their carrying amounts into the profits and losses at the current period. The
Company shall recognize the positive balance between the combination costs and the fair
value of the identifiable net assets it obtains from the acquiree as goodwill. The Company
shall treat the negative balance between the combination costs and the fair value of the
identifiable net assets it obtains from the acquiree into the profits and losses of the current
period.
The intermediary costs and relevant fees for the business combination paid by the acquirer,
including the expenses for audit, assessment and legal services, shall be recorded into the
profits and losses at the current period. The transaction expenses for the issuance of
equity securities for the business combination shall be recorded into the initial recognition
Notes of Financial Report Page 4
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
amount of equity securities.
(VI) Judgement standards for control and compiling method for consolidated financial
statements
1. Judgement standards for control
The scope of consolidation of consolidated financial statements is determined
based on control. All the subsidies (including separable sections of the investees
controlled by the Company) have been consolidated into the scope of consolidation
for this period ended.
2. Procedure of consolidation
The consolidated financial statements shall be presented by the parent based on
the financial statements of the parent and its subsidiaries and using other related
information. When preparing consolidated financial statements, the parent shall
consider the entire group as an accounting entity, adopt uniform accounting policies
and apply the requirements of Accounting Standards for Business Enterprises
related to recognition, measurement and presentation. The consolidated financial
statements shall reflect the overall financial position, operating results and cash
flows of the group. The accounting policy and accounting period of the subsidiaries
within the consolidation scope shall be in accordance with those of the Company. If
not, it is necessary to make the adjustment according to the Company’s accounting
policies and accounting period when preparing the consolidated financial
statements. For subsidiaries through acquisition that are now under common
control, the financial statements are adjusted according to the fair value of
identifiable net assets on the acquisition date. For subsidiaries through acquisition
that are under common control, the assets, and liabilities (as well as the goodwill
arising from purchasing the subsidiary by the ultimate controller) are adjusted
according to the book value of net assets in the financial statements of the ultimate
controller.
The owners’ interests, profit or loss, and comprehensive income of the subsidiary
attributable to the non-controlling shareholders shall be presented separately in the
shareholders’ equity of the consolidated balance sheet and under the item of net
profit of the consolidated statement of comprehensive income and under the item
Notes of Financial Report Page 5
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
of total comprehensive income. Where losses assumed by the minority exceed the
minority’s interests in the beginning equity of a subsidiary, the excess shall be
charged against the minority’s interests.
(1) Increasing new subsidiaries and businesses
If the Company has a new subsidiary due to a business combination under common
control during the reporting period, it shall adjust the beginning balance in the
consolidated statement of financial position when preparing the consolidated
statement of financial position. The revenue, expenses and profits of the
subsidiaries from the acquisition date to the end of the reporting period are
included in the Company’s consolidated statement of comprehensive income. The
cash flow of the subsidiaries from the acquisition date to the end of the reporting
period is included in the Company’s consolidated statement of cash flows. And
meanwhile, the Company shall adjust the relevant items of the comparative
financial statements as if the reporting entity for the purpose of consolidation has
been in existence since the date the ultimate controlling party first obtained control.
When the Company becomes capable of exercising control over an investee under
common control due to additional investment or other reasons, adjustment shall
be made as if the reporting entity after the combination has been in existence since
the date the ultimate controlling party first obtained control. The investment
income recognized between the date of previously obtaining equity investment and
the date the acquiree and acquirer are under common control, which is later, and
the combining date, other comprehensive income and other changes of net assets
arising from the equity investment previously held before obtaining the control the
acquiree shall be adjusted against the prior retained earnings of the comparative
financial statements and the current profit or loss respectively.
If it is now under common control, the Company shall not adjust the beginning
balance in the consolidated statement of financial position when preparing the
consolidated statement of financial position. The revenue, expenses and profits of
the subsidiaries from the acquisition date to the end of the reporting period are
included in the parent company’s consolidated statement of comprehensive income.
The cash flow of the subsidiaries from the acquisition date to the end of the
Notes of Financial Report Page 6
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
reporting period is included in the Company’s consolidated statement of cash flows.
When the Company becomes capable of exercising control over an investee now
under common control due to additional investment or other reasons, the acquirer
shall remeasure its previously held equity interest in the acquiree to its fair value at
the acquisition date. The difference between the fair value and the carrying amount
shall be recognized as investment income for the period when the acquisition takes
place. When the previously-held equity investment is accounted for under the
equity method, any other comprehensive income previously recognized in relation
to the acquiree’s equity changes shall be transferred to profit or loss for the current
period when the acquisition takes place. Other comprehensive income arising from
the remeasurement of the defined benefit plan is excluded.
(2) Disposing subsidiaries or businesses
① General treatment
If the Company disposes of a subsidiary during the reporting period, the revenue,
expenses and profits of the subsidiary from the beginning of the reporting period
to the disposal date are included in the Company’s consolidated statement of
comprehensive income. The cash flow of the subsidiaries from the beginning of the
reporting period to the disposal date is included in the Company’s consolidated
statement of cash flows.
When the Company loses control over an investee due to partial disposal or other
reasons, the acquirer shall re-measure the remaining equity interests in the
acquiree to its fair value at the acquisition date. The difference, between sums of
the consideration received for the disposal of equity shares and fair value of the
remaining shares, and sums of share of net assets of the subsidiary calculated
continuously from the acquisition date or the combination date based on the
previous shareholding proportion and goodwill shall be recognized as investment
income for the period when the Company loses control over acquiree. When the
previously-held equity investment is accounted for under the equity method, any
other comprehensive income previously recognized in relation to the acquiree’s
equity changes, and other equity changes rather than changes from net profit,
other comprehensive income and profit distribution, shall be transferred to
investment income for the current period when the Company loses control over
Notes of Financial Report Page 7
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
acquiree. Other comprehensive income arising from re-measurement of the
defined benefit plan is excluded. When the Company loses control over a subsidiary
due to the increase of capital from other investors and thus the shareholding ratio
of the Company declines, accounting treatment shall be in accordance with the
above-mentioned principles.
②Disposing subsidiaries by multiple transactions
Where the Company loses control of a subsidiary in multiple transactions in which
it disposes of its subsidiary in stages, in determining whether to account for the
multiple transactions as a single transaction, the Company shall consider all of the
terms and conditions of the transactions and their economic effects. One or more
of the following may indicate that the Company shall account for the multiple
arrangements as a single transaction:
(1) Arrangements are entered into at the same time or in contemplation of each
other;
(2) Arrangements work together to achieve an overall commercial effect;
(3) The occurrence of one arrangement is dependent on the occurrence of at least
one other arrangement; and
(4) One arrangement considered on its own is not economically justified, but it is
economically justified when considered together with other arrangements.
If each of the multiple transactions forms part of a bundled transaction which
eventually results in loss of control of the subsidiary, these multiple transactions
shall be accounted for as a single transaction. In the consolidated financial
statements, the difference between the consideration received and the
corresponding proportion of the subsidiary’s net assets in each transaction prior to
the loss of control shall be recognized in other comprehensive income and
transferred to the profit or loss when the Company eventually loses control of the
subsidiary.
If each of the multiple transactions which eventually results in loss of control of the
subsidiary does not form part of a bundled transaction, apply the treatment of
disposing of partial long-term equity investments in a subsidiary without loss of
control prior to the loss of control. After the loss of control, apply the treatment of
disposing of the subsidiary in common cases.
Notes of Financial Report Page 8
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(3) Acquiring the subsidiaries’ equity interest held by non-controlling shareholders
Where the Company has acquired a subsidiary’s equity interest held by non-
controlling shareholders, the difference between the increase in the cost of long-
term investments as a result of the acquisition of non-controlling interests and the
share of net assets of the subsidiary calculated continuously from the acquisition
date or the combination date based on the new shareholding proportion shall be
adjusted to the capital reserve( capital premium or share premium) in the
consolidated financial statements. If the balance of the capital reserve is not
sufficient, any excess shall be adjusted against retained earnings.
(4) Disposing portion of equity investments in subsidiaries without losing control
When the Company disposes of a portion of the long-term equity investments in a
subsidiary without loss of control, the difference between the amount of the
consideration received and the corresponding portion of the net assets of the
subsidiary calculated continuously from the acquisition date or the combination
date related to the disposal of the long-term equity investments shall be adjusted
to the capital reserve (capital premium or share premium) in the consolidated
financial statements. If the balance of the capital reserve is not sufficient, any excess
shall be adjusted against retained earnings.
(VII) Classification of joint venture arrangements and accounting treatment
Joint venture arrangements are divided into joint operations and joint ventures.
When the Company is a joint venture party of a joint venture arrangement and has the
assets related to the arrangement and assumes the liabilities related to the arrangement,
it is a joint operation.
The Company confirms the following items related to the share of interest in the joint
operation
(1). Confirm the assets held by the Company separately, and confirm the assets held jointly
by the Company's share;
(2). Recognize the liabilities assumed by the Company separately and the liabilities jointly
assumed by the Company's share;
(3). Recognize the income generated by the sale of the Company’s share of common
operating output;
(4). Recognize the revenue generated from the sale of joint operations based on the
Company's share;
Notes of Financial Report Page 9
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(5). Confirm the expenses incurred separately and the expenses incurred in the joint
operation according to the Company's share.
The Company uses equity method to calculate, for details, see Notes “III. (XIII) Long-term
equity investment”.
(VIII) Criteria for determining cash and cash equivalents
The term “cash” refers to the cash on hand and the unrestricted deposit. And the term
“cash equivalents” refers to short-term (maturing within three months from acquisition)
and highly liquid investments that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of change in value.
(IX) Foreign currency transaction and translation of foreign currency financial statements
1. Foreign currency transaction
Foreign currency transactions are translated into RMB at the current rate on the day
of transactions.
The foreign currency monetary items shall be translated at the spot exchange rate
on the balance sheet date. The balance of exchange arising from the difference
between the spot exchange rate on the balance sheet date and the spot exchange
rate at the time of initial recognition or prior to the balance sheet date, except those
arising from the raising of special foreign debt for the purchase or construction of
capitalizable assets thus shall be capitalized according to the borrowing costs
capitalization principle, shall be recorded into the profits and losses at the current
period.
2. Translation of foreign currency financial statements
The asset and liability items in the statement of financial position shall be translated
at a spot exchange rate on the balance sheet date. Among the owner's equity items,
except the ones as "undistributed profits", others shall be translated at the spot
exchange rate at the time when they are incurred. The income and expense items
in the income statement shall be translated using an exchange rate that is
determined in a systematic and reasonable manner and approximates the spot
exchange rate on the transaction date.
When disposing of an overseas business, the Company shall shift the balance, which
Notes of Financial Report Page 10
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
is presented under the items of the owner's equities in the statement of financial
position and arises from the translation of foreign currency financial statements
related to this oversea business, into the disposal profits and losses of the current
period.
(X) Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
1. Classification of financial instruments
A financial asset shall be measured at amortized cost if both of the following
conditions are met. The financial asset is held within a business model whose
objective is to hold financial assets in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount
outstanding.
The Company classifies financial assets that meet the following conditions and are
not designated as at fair value through profit or loss as financial assets measured at
amortized cost:
－ The financial asset is held within a business model whose objective is to hold
financial assets in order to collect contractual cash flows;
－ The contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount
outstanding.
The Company classifies financial assets that meet the following conditions and are
not designated as at fair value through profit or loss as financial assets (debt
instruments) at fair value through other comprehensive income:
－ The financial asset is held within a business model whose objective is achieved
by both collecting contractual cash flows and selling financial assets;
－ The contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount
outstanding.
The Company may make an election at initial recognition for non-trading equity
Notes of Financial Report Page 11
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
instrument investments whether it is designated as a financial asset (equity
instrument) that is measured at fair value through other comprehensive income.
The designation is made on the basis of a single investment, and the related
investment meets the definition of an equity instrument from the issuer's
perspective.
Other financial assets other than these are classified as financial assets measured
at fair value through profit or loss. At the initial recognition, in order to eliminate or
significantly reduce accounting mismatches, financial assets that should be
classified as measured at amortized value or financial assets measured at fair value
through other comprehensive income can be designated as financial assets
measured at fair value through profit or loss.
The Company shall classify financial liabilities as financial liabilities measured at
amortized cost and financial liabilities measured at fair value through profit or loss
at initial measurement.
The Company may, at initial recognition, designate a financial liability as measured
at fair value through profit or loss because either:
1）it eliminates or significantly reduces an accounting mismatch;
2）a group of financial liabilities or financial assets and financial liabilities is
managed and its performance is evaluated on a fair value basis, in accordance with
a documented risk management or investment strategy, and information about the
group is provided internally on that basis to the entity’s key management personnel;
3）the financial liability contains embedded derivatives that need to be separated.
2. Recognition and measurement of financial instruments
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include notes receivables, accounts
receivables, other receivables, long-term receivables, debt investments, etc. At
initial recognition, the Company shall measure a financial asset at its fair value plus
or minus transaction costs that are directly attributable to the acquisition or issue
of the financial asset. The Company shall measure account receivables at their
transaction price if the account receivables do not contain a significant financing
Notes of Financial Report Page 12
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
component and account receivables that the Company has decided not to consider
for a financing component of no more than one year.
Interests calculated by using the effective interest method during the holding period
shall be recognized in profit or loss.
When recovering or disposing of the receivables, the difference between the price
obtained and the carrying value shall be recognized in current profit or loss.
(2) Financial assets measured at fair value through other comprehensive income
(debt instruments)
Financial assets measured at fair value through other comprehensive income (debt
instruments) include receivables financing, other debt investments, etc. At initial
recognition, the Company shall measure a financial asset at its fair value plus
transaction costs that are directly attributable to the acquisition or issuance of the
financial asset. The financial assets are subsequently measured at fair value.
Changes in fair value are included in other comprehensive income except for
interest calculated using the effective interest method, impairment losses or gains
and exchange gains and losses. When the financial assets are derecognized, the
accumulated gain or loss previously recognized in other comprehensive income is
transferred from other comprehensive income and recognized in profit or loss.
(3) Financial assets at fair value through other comprehensive income (equity
instruments)
Financial assets at fair value through other comprehensive income (equity
instruments). include other equity instrument investments, etc. At initial
recognition, the Company shall measure a financial asset at its fair value plus
transaction costs that are directly attributable to the acquisition or issue of the
financial asset. The financial assets are subsequently measured at fair value.
Changes in fair value are included in other comprehensive income. The dividends
obtained are recognized in profit and loss.
Notes of Financial Report Page 13
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
When the financial assets are derecognized, the accumulated gain or loss previously.
recognized in other comprehensive income is transferred from other
comprehensive income and recognized in retained earnings.
(4) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include transactional financial
assets, derivative financial assets, other non-current financial assets, etc.
The Company shall measure the financial assets at fair value at initial recognition.
Transaction costs are recognized in profit or loss. Changes in fair value are included
in profit or loss.
(5) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include current financial
liabilities, derivative financial liabilities, etc.
The Company shall measure the financial assets at fair value at initial recognition.
Transaction costs are recognized in profit or loss. Changes in fair value are included
in profit or loss.
When the financial liabilities are derecognized, the difference between the fair
value and the. initially recorded amount is recognized as investment income, and
the gains and losses from changes in fair value are adjusted.
(6) Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost include short-term borrowings,
notes payables, accounts payables, other payables, long-term borrowings, bonds
payables, and long-term payables.
At initial recognition, the Company shall measure a financial liability at its fair value
plus transaction costs that are directly attributable to the acquisition or issue of the
financial asset.
Interests calculated by using the effective interest method during the holding period
Notes of Financial Report Page 14
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
shall be recognized in profit or loss.
When the financial liabilities are derecognized, the difference between the price
obtained and the carrying value shall be recognized in profit and loss.
3. Termination of recognition of financial assets and financial assets transfer
When one of the following conditions is met, the Company terminates the
recognition of financial assets.
－ Termination of contractual rights to receive cash flows from financial assets;
－ Termination of contractual rights to receive cash flows from financial assets;
－ The financial assets have been transferred. Although the Company has neither
transferred nor retained almost all the risks and rewards of the ownership of the
financial assets, it has not retained control of the financial assets.
If the Company modifies or renegotiates the contract with the counterparty and
constitutes a substantial modification, the original financial asset shall be
terminated and a new financial asset shall be confirmed according to the modified
terms.
When a financial assets are transferred, if almost all risks and rewards on the
ownership of the financial asset are retained, the recognition of the financial asset
will not be terminated.
To judge whether the transfer of a financial asset can satisfy the conditions as
prescribed in these Standards for stopping the recognition of a financial asset, the
Company shall follow the principle of substance over form.
Transfer of an entire financial asset can be divided into partial financial assets
transfer and entire financial asset transfer. If the transfer of an entire financial asset
satisfies the conditions for de-recognition, the difference between the amounts of
the following 2 items shall be recorded in the profits and losses of the current period:
(1) The book value of the transferred financial asset; and
(2) The sum of the consideration received from the transfer, and the accumulative
Notes of Financial Report Page 15
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
amount of the changes of the fair value originally recorded in the owners' equities
(in the event that the financial asset involved in the transfer is a financial asset
Available-for-sale).
If the transfer of partial financial asset satisfies the conditions to derecognize, the
entire book value of the transferred financial asset shall, between the portion
whose recognition has been stopped and the portion whose recognition has not
been stopped (under such circumstance, the service asset retained shall be deemed
as a portion of the financial asset whose recognition has not been stopped), be
apportioned according to their respective relative fair value, and the difference
between the amounts of the following 2 items shall be included into the profits and
losses of the current period:
(1) The book value of the portion whose recognition has been stopped; and
(2) The sum of consideration of the portion whose recognition has been stopped
and the portion of the accumulative amount of the changes in the fair value
originally recorded in the owner's equities which is corresponding to the portion
whose recognition has been stopped (in the event that the financial asset involved
in the transfer is a financial asset Available-for-sale).
If the transfer of financial assets does not satisfy the conditions to stop the
recognition, it shall continue to be recognized as financial assets and the
consideration received shall be recognized as financial liabilities.
4. Termination of recognition of financial liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in
part may the recognition of the financial liability be terminated in all or partly.
Where the Company (the debtor) enters into an agreement with a creditor so as to
substitute the existing financial liabilities by way of any new financial liability, and if
the contractual stipulations regarding the new financial liability are substantially
different from that regarding the existing financial liability, it shall terminate the
recognition of the existing financial liability, and shall at the same time recognize
the new financial liability.
Notes of Financial Report Page 16
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Where the Company makes substantial revisions to part or all of the contractual
stipulations of the existing financial liability, it shall terminate the recognition of the
existing financial liability or part of it, and at the same time recognize the financial
liability after revising the contractual stipulations as a new financial liability.
Where the recognition of a financial liability is totally or partially terminated, the
Company shall include in the profits and losses of the current period the difference
between the carrying amount which has been terminated from recognition and the
considerations it has paid (including the non-cash assets it has transferred out and
the new financial liabilities it has assumed).
Where the Company buys back part of its financial liabilities, it shall distribute, on
the date of repurchase, the carrying amount of the whole financial liabilities in light
of the comparatively fair value of the part that continues to be recognized and the
part whose recognition has already been terminated. The gap between the carrying
amount which is distributed to the part whose recognition has terminated and the
considerations it has paid (including the noncash assets it has transferred out and
the new financial liabilities it has assumed) shall be recorded into the profits and
losses of the current period.
5. Determination of the fair value of the financial assets (liabilities)
If active markets for the financial instruments exist, the fair value shall be measured
by quoted prices in the active markets. If active markets for the financial
instruments do not exist, valuation techniques shall be applied for the
measurement. The Company uses valuation techniques appropriate to the
circumstances and for which sufficient data are available to measure fair value. The
Company chooses relevant observable inputs for identical or similar assets or
liabilities. Only when relevant observable inputs are unavailable or should the
Company use unobservable inputs for the asset or liability.
6. Impairment provision of the financial assets
The Company recognized the expected credit loss on financial assets measured at
amortized cost, financial assets measured at fair value through other
comprehensive income (debt instruments), financial guarantee contract, and so on,
Notes of Financial Report Page 17
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
on an individual or portfolio basis.
The Company considers all reasonable and relevant information, including past
events, current conditions, and forecasts of future economic conditions, and uses
the risk of default as the weight to calculate the probability-weighted amount of
present value of the difference between the cash flow receivable from the contract
and the cash flow expected to be received to confirm the expected credit loss.
For account receivables and contract assets recognized according to Accounting
Standards for Business Enterprises No. 14 Revenue (2017), whether a significant
financing component is contained or not, the Company shall always measure the
loss allowance at an amount equal to lifetime expected credit losses.
For lease receivables arising from transactions regulated by Accounting Standards
for Business Enterprises No.21-Leases, the Company chooses to measure its loss
provision at all times at an amount equivalent to the expected credit loss during the
whole life.
For other financial instruments, the Company assesses the changes in the credit risk
of the relevant financial instruments since their initial recognition on each balance
sheet date.
The Company compares the risk of default on the balance sheet date of financial
instruments with the risk of default on the date of initial recognition to determine
the relative change in the risk of default during the expected life of the financial
instrument to assess whether there is a significant increase in the credit risk of
financial assets since the initial recognition. Generally, the Company believes that
the credit risk of the financial instrument has significantly increased over 30 days
after the due date unless there is solid evidence that the credit risk of the financial
instrument has not increased significantly since initial recognition.
If the credit risk of a financial instrument at the reporting date is relatively low, the
Company considers that the credit risk of the financial instrument has not increased
significantly since the initial recognition.
Notes of Financial Report Page 18
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
If the credit risk of the financial instrument has increased significantly since its initial
recognition, the Company shall measure its loss reserve according to the amount
equivalent to the expected credit loss of the financial instrument during its entire
life; If the credit risk of the financial instrument has not increased significantly since
its initial recognition, the Company shall measure its loss reserve at an amount
equivalent to the expected credit loss of the financial instrument in the next 12
months. The resulting increase or reversal of loss reserves shall be recorded in
current profits and losses as impairment losses or gains. For financial assets (debt
instruments) measured at fair value and whose changes are included in other
comprehensive income, their loss reserves are recognized in other comprehensive
income, and impairment losses or gains are included in current profits and losses
without reducing the book value of the financial assets listed in the balance sheet.
(XI) Inventory
1. Inventory classification
Inventories include materials in transit, raw material, turnover materials, finished
goods, work in process, issuing commodities, materials for consigned processing,
etc.
Inventory is initially measured at cost. Inventory cost includes purchase cost,
processing cost and other expenditures incurred to bring inventory to its current
location and state.
2. Valuation method for inventory dispatched
The weighted average method is used to confirm the actual cost of the inventories
dispatched.
3. Inventory system
Adopt a perpetual inventory system.
4. Amortization method of low-value consumables and packaging materials
Notes of Financial Report Page 19
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(1) Adopt one-time resale method when dealing with low-value consumables
(2) Adopt the method of one-time resale when dealing with the packaging
5. Confirmation standards and accrual method of provision for inventory
impairment loss
On the balance sheet date, inventories shall be measured at the lower of cost and
net realizable value. When the cost of inventories is higher than its net realizable
value, provision for inventory impairment loss shall be made. The net realizable
value refers to the amount of the estimated selling price of the inventory minus the
estimated costs that will occur at the time of completion, estimated selling
expenses, and relevant taxes in daily activities.
The net realizable value of inventories (finished products, stock commodity,
material, etc.) held for direct selling in the daily business activity shall be calculated
by deducting the estimated sale expense and relevant taxes from the estimated sale
price of inventories; The net realizable value of inventories for further processing in
the daily business activity shall be calculated by deducting the estimated cost of
completion, estimated sale expense and relevant taxes from the estimated sale
price of inventories; The net realizable value of inventories held for the execution
of sales contracts or labor contracts shall be calculated on the ground of the
contract price. If the Company holds more inventories than the quantities
subscribed in the sales contract, the net realizable value of the excessive part of the
inventories shall be calculated on the ground of the general sales price.
After the inventory impairment is withdrawn, if the factors that previously affected
the write-down of the inventory value have disappeared, causing the net realizable
value of the inventory to be higher than its book value, it shall be reversed within
the amount of the inventory impairment that has been withdrawn, and the reverted
amount shall be included in the current profit and loss.
(XII) Contract asset
1. Confirmation method and standard for contract asset
When either party to a contract has performed, the Company shall present the
Notes of Financial Report Page 20
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
contract in the statement of financial position as a contract asset or a contract
liability, depending on the relationship between the Company’ s performance and
the customer’ s payment. If the Company have the right to receive consideration
(the right is conditioned on factors other than the passage of time) by transferring
goods or services to a customer, the entity shall present the contract as a contract
asset. Contract assets and contract liabilities under the same contract are disclosed
in net amounts. An entity shall present any unconditional rights to consideration
(only the passage of time is required) separately as a receivable.
2. Confirmation method and accounting treatment method of expected credit loss
of contract assets
For the confirmation method and accounting treatment method of expected credit
loss of contract assets, please refer to "(X) 6. Test method and accounting treatment
method of impairment of financial instruments" in this note.
(XIII) Long-term equity investment
1. Criteria of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which
exists only when decisions about the relevant activities require the unanimous
consent of the parties sharing control. If the Company and other joint ventures have
joint control of the investee and have rights to the net assets of the investee, the
investee is a joint venture of the Company.
Significant influence is the power to participate in the financial and operating policy
decisions of the investee but not control or joint control of those policies. If the
Company could exert significant influence over the investee, the investee is the
associate of the Company.
2. The initial cost of long-term equity investment from business acquisition
(1) Long-term equity investment from business acquisition
For a business combination under common control, if the consideration of the
combination is satisfied by paying cash, transfer of non-cash assets or assumption
of liabilities and the issue of equity securities, the initial investment cost of the long-
Notes of Financial Report Page 21
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
term equity investment shall be the absorbing party’s share of the carrying amount
of the owner’s equity of the party being absorbed in the consolidated financial
statements of the ultimate controlling party at combination date. When an investor
becomes capable of exercising control over an investee under common control due
to additional investment or other reasons, the initial investment cost shall be the
absorbing party’s share of the carrying amount of the owner’s equity of the party
being absorbed in the consolidated financial statements of the ultimate controlling
party at combination date. The difference between the initial investment cost and
the carrying amount of the previously held equity investment, together with the
additional investment cost for new shares at the combination date, shall be
adjusted to the capital reserve. If the balance of capital reserve is not sufficient, any
excess shall be adjusted to retained earnings.
For a business combination not under common control, the initial investment cost
of the long-term equity investment shall be the acquisition cost at the acquisition
date. When an investor becomes capable of exercising control over an investee due
to additional investment or other reasons, the initial investment cost under the cost
method shall be the carrying amount of previously-held equity investment together
with the additional investment cost.
(2) The initial cost of the long-term equity investment other than from business
acquisition
The initial cost of a long-term equity investment obtained by making payment in
cash shall be the purchase cost which is actually paid.
The initial cost of a long-term equity investment obtained by making payment in
cash shall be the purchase cost which is actually paid.
3. Subsequent measurement and profit or loss recognition
(1) Cost method for the long-term investment
The Company adopts the cost method for the long-term investment in a subsidiary
company. Under the cost method, an investing enterprise shall, in accordance with
Notes of Financial Report Page 22
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
the attributable share of the net profits or losses of the invested entity, recognize
the investment profits or losses except the dividend declared but unpaid, which is
included in the payment when acquiring the investment.
(2) Equity method for the long-term investment
A long-term equity investment in an associate or a joint venture shall be accounted
for using the equity method. Where the initial investment cost of a long-term equity
investment exceeds investor’ s interest in the fair values of an investee’ s identifiable
net assets at the acquisition date, no adjustment shall be made to the initial
investment cost. Where the initial cost is less than the investor’ s interest in the fair
values of the investee’ s identifiable net assets at the acquisition date, the
difference shall be credited to profit or loss for the current period, and the cost of
long-term equity investment shall be adjusted accordingly.
The Company shall recognize its share of the investee’s net profits or losses, as well
as its share of the investee’s other comprehensive income, as investment income or
losses and other comprehensive income, and adjust the carrying amount of the
investment accordingly. The carrying amount of the investment shall be reduced by
the portion of any profit distributions or cash dividends declared by the investee
that is attributable to the investor. The investor’s share of the investee’s owners’
equity changes, other than those arising from the investee’s net profit or loss, other
comprehensive income or profit distribution (for short, other owners’ equity
changes ), and the carrying amount of the long-term equity investment shall be
adjusted accordingly.
The investor shall recognize its share of the investee’s net profits or losses after
making appropriate adjustments according to the Company’s accounting principles
and operating period based on the fair values of the investee’s identifiable net
assets at the acquisition date. During the holding period, if the investee makes
consolidated financial statements, the Company shall calculate its share based on
the investee’s net profit, other comprehensive income and the amount of other
owners’ equity attributed to the investee in the consolidated financial statements.
Notes of Financial Report Page 23
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
The unrealized profits or losses resulting from transactions between the investor
and its associate or joint venture shall be eliminated in proportion to the investor’s
equity interest in the investee, based on which investment income or losses shall
be recognized, except the transaction of investment or sale of assets is a business.
Any losses resulting from transactions between the investor and investee which are
attributable to asset impairment shall be recognized in full.
The Company’s net losses incurred by joint ventures or associates, in addition to
assuming additional loss obligations, are limited to the book value of long-term
equity investments and other long-term equity that essentially constitutes a net
investment in joint ventures or associates. If a joint venture or associated enterprise
realizes net profits in the future, the Company resumes recognizing its share of
profits after the share of profits makes up for the share of unrecognized losses.
(3) Disposal of long-term equity investment
When disposing of long-term equity investment, the difference between the
proceeds actually received and the carrying amount shall be recognized in profit or
loss for the current period.
Partial disposal of long-term equity investments accounted for by the equity
method, and the remaining equity is still accounted for by the equity method, the
other comprehensive income recognized by the original equity method shall be
carried forward according to the same basis as the direct disposal of related assets
or liabilities by the investee. All other changes in the interests of the holders are
carried forward to the current profit and loss on a pro-rata basis.
When an investor can no longer exercise joint control of or significant influence over
an investee due to partial disposal of an equity investment or other reasons, any
other comprehensive income previously recognized shall be accounted for on the
same basis as would have been required if the investee had directly disposed of the
related assets or liabilities for the current period upon discontinuation of the equity
method. Other owner's equity change shall be transferred into profit or loss of the
current period in full when the Company cease to adopt the equity method.
Notes of Financial Report Page 24
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
When an investor can no longer control the investee due to partial disposal, when
the individual financial statements are prepared, the remaining equity can exercise
joint control or significant influence on the investee, and the equity method shall
be used to account for the remaining equity. It is deemed that the equity method is
adopted for adjustment since the acquisition, and the other comprehensive income
recognized before the control of the investee is obtained is carried forward on the
same basis as the direct disposal of related assets or liabilities by the investee,
because the equity method is used for accounting. The confirmed changes in other
owners’ equity are carried forward to the current profit and loss on a pro-rata basis.
If the remaining equity cannot exercise joint control or exert significant influence on
the investee, it shall be recognized as a financial asset, and the difference between
its fair value and book value on the date when control is lost shall be included in the
current profit and loss, and other comprehensive income and other owner’s
interests previously recognized shall be transferred to profit or loss in full.
If the equity investment of a subsidiary is disposed of through multiple transactions
until it loses control, which is a package transaction, each transaction shall be
accounted as a transaction that disposes of the equity investment of the subsidiary
and loses control. For each transaction before the loss of control, the difference
between the disposal price and the book value of the corresponding disposed part
of long-term equity investment is first recognized as other comprehensive income
in individual financial statements and then transferred to the current profit and loss
when the control is lost. If it is not a package transaction, each transaction shall be
accounted for separately.
(XIV) Fixed assets
1. Recognition and Initial Measurement of Fixed Assets
The term "fixed assets" refers to the tangible assets held for the sake of producing
commodities, rendering labor service, renting or business management and of
which useful life is in excess of one fiscal year. No fixed asset may be recognized
unless it simultaneously meets the conditions as follows:
(1) The economic benefits pertinent to the fixed asset are likely to flow into the
enterprise; and
Notes of Financial Report Page 25
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(2) The cost of the fixed asset can be measured reliably.
Fixed assets are initially measured at cost (and considering the impact of expected
dismantling cost factors).
Subsequent expenditures related to fixed assets are included in the cost of fixed
assets when the related economic benefits are likely to flow in and their costs can
be reliably measured; the book value of the replaced part is derecognized; all other
subsequent expenditures are incurred shall be included in the current profit and
loss.
2. Depreciation Method
Fixed assets are depreciated under the straight-line method. The depreciation rate
is determined according to the category of assets, the useful life and the expected
residual rate. If the components of the fixed assets have different useful lives or
provide economic benefits in a different way, then different depreciation rate or
methods shall be applied and the depreciation of the components shall be
calculated separately.
Details of classification, residual value rate and annual depreciation rate are as
follows:
Residual
Depreciation Depreciation Residual
Category value rate
method life (year) value rate (%)
(%)
Plants and Year average
Buildings method 40 5.00 2.38
Year average
Machinery 17-24 5.00 3.96-5.59
method
Transportation
Year average
and other 5-12 5.00 7.92-19.00
method
equipment
3. Disposal of fixed assets
When a fixed asset is disposed of, or it is expected that no economic benefits will
Notes of Financial Report Page 26
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
be generated through use or disposal, the recognition of the fixed asset shall be
determined. The amount of disposable income of fixed assets raised from sale,
transfer, scrapping or damage shall be included in the current profit and loss after
deducting its book value and related taxes.
(XV) Construction in progress
Construction in progress is measured at the actual cost incurred. The actual cost includes
construction costs, installation costs, borrowing costs that meet the capitalization
conditions, and other necessary expenditures incurred before the construction in progress
reaches its intended use status.
Construction in progress is transferred to fixed asset when it has reached its working
condition for its intended use and depreciation will be accrued from the next month.
(XVI) Borrowing costs
1. Principle of the recognition of capitalized borrowing costs
Where the borrowing costs incurred by an enterprise can be directly attributable to
the acquisition and construction or production of assets eligible for capitalization,
it shall be capitalized and recorded into the costs of relevant assets. Other
borrowing costs shall be recognized as expenses on the basis of the actual amount
incurred and shall be recorded into the current profits and losses.
Assets eligible for capitalization refer to the fixed assets, investment property,
inventories and other assets, of which the acquisition and construction or
production may take quite a long time to get ready for their intended use or for sale.
2. The capitalization period of borrowing costs
The capitalization period shall refer to the period from the commencement to the
cessation of capitalization of the borrowing costs, excluding the period of
suspension of capitalization of the borrowing costs.
Notes of Financial Report Page 27
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
The borrowing costs shall not be capitalized unless they simultaneously meet the
following requirements:
(1) The asset disbursements have already been incurred, which shall include cash,
transferred noncash assets or interest-bearing debts paid for the acquisition and
construction or production activities for preparing assets eligible for capitalization;
(2) The borrowing costs have already been incurred; and
(3) The acquisition and construction or production activities which are necessary to
prepare the asset for its intended use or sale have already started.
When the qualified asset under acquisition and construction or production is ready
for the intended use or sale, the capitalization of the borrowing costs shall be
ceased.
3. The suspension of capitalization of borrowing costs
Where the acquisition and construction or production of a qualified asset are
interrupted abnormally and the interruption period lasts for more than 3 months,
the capitalization of the borrowing costs shall be suspended. If the interruption is a
necessary step for making the qualified asset under acquisition and construction or
production ready for the intended use or sale, the capitalization of the borrowing
costs shall continue. The borrowing costs incurred during such period shall be
recognized as expenses and shall be recorded into the profits and losses of the
current period, till the acquisition and construction or production of the asset
restarts.
4. Method of calculating the capitalization rate and capitalized amount of borrowing
costs
For interest expense (minus the income of interests earned on the unused
borrowing loans as a deposit in the bank or investment income earned on the loan
as a temporary investment) and the ancillary expense incurred to a specifically
borrowed loan, those incurred before a qualified asset under acquisition,
construction or production is ready for the intended use or sale shall be capitalized
Notes of Financial Report Page 28
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
at the incurred amount when they are incurred, and shall be recorded into the costs
of the asset eligible for capitalization.
The Company shall calculate and determine the to-be-capitalized number of
interests on the general borrowing by multiplying the weighted average asset
disbursement of the part of the accumulative asset disbursements minus the
general borrowing by the capitalization rate of the general borrowing used. The
capitalization rate shall be calculated and determined in light of the weighted
average interest rate of the general borrowing.
(XVII) Intangible assets
1. Measurement of intangible assets
(1) Initial measurement is based on cost upon acquisition
The cost of an intangible asset on acquisition includes the purchase price, relevant
taxes and other necessary disbursements which may be directly attributable to
bringing the intangible asset to the conditions for the expected purpose.
(2) Subsequent measurement
The Company shall analyze and judge the beneficial period of intangible assets upon
acquisition.
Intangible assets with finite beneficial periods shall be amortized under the straight-
line method; during the period when the intangible asset can bring economic
benefits to the enterprise. If it is unable to estimate the beneficial period of the
intangible asset, it shall be regarded as an intangible asset with uncertain service
life and shall not be amortized.
2. Estimated useful lives of intangible assets with limited useful lives:
Item Estimated useful life Criteria of estimated useful life
Land use right 50 years Land use right certificate
3. Classification criteria for the internal research phase and development phase:
Notes of Financial Report Page 29
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
The expenditures for the internal research and development projects of an
enterprise shall be classified into research expenditures and development
expenditures.
Research phase refers to the phase of creative and planned investigation to acquire
and study to acquire and understand new scientific or technological knowledge.
Development phase refers to the phase during which the result of the research
phase or other knowledge is applied to certain projects or designs for the
manufacturing of new or substantially improved materials, devices and products
before commercial manufacturing and use.
4. Specific conditions for capitalization of development phase expenditures:
Research expenditures are recognized in profit or loss as incurred. Expenditures in
the development phase are recognized as intangible assets if the following
conditions are met, and expenditures in the development phase that do not meet
the following conditions are recognized in profit or loss:
(1) It is technically feasible to complete the intangible asset so that it can be used
or sold;
(2) There is an intent to complete the intangible asset and use or sell it;
(3) The manner in which an intangible asset generates economic benefits, including
being able to demonstrate that there is a market for the product produced from the
intangible asset or that there is a market for the intangible asset itself and that the
intangible asset will be used internally, should prove its usefulness;
(4) There are sufficient technical, financial and other resources to support the
completion of the development of the intangible asset and is capable of using or
selling the intangible asset;
(5) The expenditure attributable to the development phase of the intangible asset
can be measured reliably.
If it is not possible to distinguish between research phase expenditures and
development phase expenditures, all research and development expenditures
incurred are charged to current profit or loss.
Notes of Financial Report Page 30
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(XVIII) Impairment of long-term assets
Long-term equity investments, fixed assets, construction in progress, right-of-use assets,
intangible assets with limited useful lives and other long-term assets shall be tested for
impairment if there is an indication of impairment at the balance sheet date. If the result
of the impairment test indicates that the recoverable amount of an asset is less than its
book value, the difference shall be recognized as a provision for impairment and included
in impairment loss. The recoverable amount is the higher of the fair value of assets, less
costs of disposal, and the present value of estimated future cash flows from the assets.
The provision for impairment of assets shall be calculated and recognized on an individual
basis, and if it is difficult to estimate the recoverable amount of an individual asset, the
Company shall recognize the recoverable amount of asset group to which the asset
belongs. The term “assets group” refers to a minimum combination of assets by which the
cash flows could be generated independently
Goodwill arising from business combinations, intangible assets with an indefinite useful
life, and intangible assets that have not yet reached their intended useable state shall be
tested for impairment at least at the end of each year, regardless of whether there is an
indication of impairment.
In performing an impairment test on goodwill, the Company shall apportion the book
value of goodwill arising from business combinations to the relevant asset group from the
date of purchase in accordance with a reasonable method; for those that it is difficult to
be apportioned to the relevant asset group, they shall be apportioned to the relevant
portfolio of asset group. The relevant asset group or combination of asset groups are those
that can benefit from the synergistic effects of the business combination.
In performing an impairment test on the relevant asset group or portfolio of asset group
that contains goodwill, the Company shall conduct the impairment test first on the asset
group or portfolio of asset group that does not contain goodwill if there is an indication of
impairment on the asset group or portfolio of asset group relating to goodwill, and
calculate its recoverable amount as well as compare it with the relevant book value to
recognize the corresponding impairment loss. Then the impairment test shall be
performed for the asset group or portfolio of asset group that contains goodwill,
Notes of Financial Report Page 31
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
comparing its book value and its recoverable amount. If the recoverable amount is less
than the book value, the amount of impairment loss shall be offset and apportioned to the
book value of goodwill contained in the asset group or portfolio of asset group, and then
offset the book value of other assets in proportion to the proportion of book value of
assets other than goodwill in the asset group or portfolio of asset group.
The impairment losses on assets mentioned above, once recognized, shall not be reversed
in subsequent accounting periods.
(XIX) Long-term deferred expense
The long-term deferred expense refers to the expenses incurred but shall be borne by the
current and subsequent accounting period, which is more than one year.
The long-term deferred expense shall be amortized over its beneficiary period evenly.
(XX) Contract liabilities
The Company shall present contract assets or contract liabilities in the statement of
financial position in accordance with the relationship between the performance of an
obligation and the payment of customers. The obligation of the Company to transfer goods
or provide services to customers for consideration received or receivable from customers
shall be presented as contract liabilities. Contract assets and contract liabilities under the
same contract shall be shown on a net basis.
(XXI) Employee benefits
1. Accounting treatment for short-term employee benefits
The Company shall recognize the short-term benefits actually incurred as the
liabilities, and recognize such liabilities into the current profit and loss or the costs
of the related assets in the accounting period to which the employees render the
services.
Payments made by the Company of social security contributions for employees,
payments of housing provident funds, union funds and employee education costs
provided in accordance with relevant requirements shall, in the accounting period
in which employees provide services, be calculated according to prescribed bases
Notes of Financial Report Page 32
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
and percentages in determining the amount of employee benefits.
The employee welfare expenses incurred by the Company are included in the
current profit and loss or related asset costs based on the actual amount when they
actually occur. Among them, non-monetary benefits are measured at fair value.
2. Accounting treatment for post-employment benefits
(1) Defined contribution plan
The Company shall recognize, in the accounting period in which an employee
provides service, pension fund and unemployment fund for employees as liabilities
according to the local government regulations. The amount shall be calculated
according to local prescribed bases and percentages in determining the amount of
employee benefits, with a corresponding charge to the profit or loss or cost of an
asset for the current period.
The Company contributes to the basic pension insurance and unemployment
insurance for its employees in accordance with the relevant local government
regulations. The amount payable is calculated on the basis of the contribution base
and at the rate prescribed by the local regulations and is recognized as a liability and
charged to current profit and loss or the cost of related assets in the accounting
period in which the employees provide services to the Company. In addition, the
Company participates in an enterprise annuity plan/supplemental pension fund
approved by the relevant state authorities. The Company contributes a certain
percentage of the employees' gross salaries to the annuity plans/local social
insurance institutions and the corresponding expenses are charged to current profit
and loss or to the cost of related assets.
(2) Defined benefit plan
None.
3. Accounting treatment for termination benefits
The Company shall recognize employee benefits liabilities for termination benefits,
with a corresponding charge to the current profit and loss, at the earlier of the
following dates: when the Company cannot unilaterally withdraw the offer of
termination benefits because of an employment termination plan or a curtailment
proposal; or when the Company recognizes costs or expenses related to a
Notes of Financial Report Page 33
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
restructuring that involves the payment of termination benefits.
(XXII) Estimated liabilities
The obligation pertinent to a contingency shall be recognized as an estimated liability
when the following conditions are satisfied simultaneously:
(1) That obligation is a current obligation of the Company;
(2) It is likely to cause any economic benefit to flow out of the Company as a result of the
performance of the obligation; and
(3) The amount of the obligation can be measured in a reliable way.
The estimated liabilities shall be initially measured in accordance with the best estimate
of the necessary expenses for the performance of the current obligation.
To determine the best estimate, the Company shall take into full consideration of the risks,
uncertainty, time value of money, and other factors pertinent to the contingencies. If the
time value of money is of great significance, the best estimate shall be determined after
discounting the relevant future outflow of cash.
If there is a continuous range of expenses required and the likelihood of various outcomes
within that range is equal, the best estimate is determined by the mid-point of the range;
in other cases, the best estimate is treated separately as follows:
If a contingency relates to a single item, it shall be determined in the light of the most
likely outcome.
If the contingencies relate to more than one item, the best estimate shall be calculated
and determined in accordance with all possible outcomes and the relevant probabilities.
When all or some of the expenses necessary for the liquidation of an estimated liabilities
of an enterprise is expected to be compensated by a third party, the compensation shall
be separately recognized as an asset only when it is virtually certain that the
reimbursement will be obtained. The amount recognized for the reimbursement shall not
exceed the book value of the estimated liabilities.
The Company reviews the book value of the estimated liabilities on the balance sheet date.
If there is conclusive evidence that the book value does not reflect the current best
Notes of Financial Report Page 34
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
estimate, the book value will be adjusted according to the current best estimate.
(XXIII) Revenue
1. Accounting policies used for revenue recognition and measurement
The Company shall recognize revenue when (or as) the Company satisfies a
performance obligation when (or as) the customer obtains control of a promised
good or service. Control of a promised good or service refers to the ability to direct
the use of, and obtain substantially all of the remaining benefits from it.
If the contract contains two or more performance obligations, the Company shall
allocate the transaction price to each individual performance obligation based on
the relative proportion of the stand-alone selling price of the goods or services
promised by each individual performance obligation on the date of the contract.
The Company measures revenue based on the transaction price allocated to each
individual performance obligation.
The transaction price is the amount of consideration to which the Company expects
to be entitled in exchange for transferring promised goods or services to customers,
excluding amounts collected on behalf of the third parties or amounts expected to
be returned to customers. The Company shall consider the terms of the contract
and its customary business practices to determine the transaction price. When
determining the transaction price, the Company shall consider the effects of all of
the following: variable consideration, the existence of a significant financing
component in the contract, non-cash consideration, and consideration payable to
customers. The Company determines the transaction price that includes variable
consideration at an amount that does not exceed the amount of accumulated
recognized revenue that is unlikely to be materially reversed when the relevant
uncertainty is eliminated. If there is a significant financing component in the
contract, the Company shall recognize revenue at an amount that reflects the price
that a customer would have paid for the promised goods or services if the customer
had paid cash for those goods or services when (or as) they transfer to the customer,
and use the effective interest method to amortize the difference between the
transaction price and the contract consideration during the contract period. When
one of the following conditions is met, the Company is deemed to have undertaken
Notes of Financial Report Page 35
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
the performance obligation within a certain time; otherwise, it will be deemed as
undertaking the performance obligation at a certain point in time:
The customer simultaneously receives and consumes the benefits provided by
the Company’s performance as the Company performs;
The customer has control over the goods in progress during the Company's
performance.
The goods produced in the course of the Company's performance are of
irreplaceable use and the Company is entitled to receive payment for the portion of
the performance that has been completed cumulatively to date during the entire
term of the contract.
The Company shall recognize revenue over time by measuring the progress towards
complete satisfaction of that performance obligation, except where the
performance progress cannot be reasonably determined. The Company considers
the nature of the goods or services and adopts the output method or the input
method to determine the progress of performance. Where the performance
progress cannot be reasonably determined, but the Company expects to recover
the costs incurred in satisfying the performance obligation, the Company shall
recognize revenue only to the extent of the costs incurred until such time that it can
reasonably measure the outcome of the performance obligation.
For performance obligations satisfied at a certain point in time, the Company shall
recognize revenue at the point when the customer obtains control of the relevant
goods or services. To determine the point in time at which a customer obtains
control of promised goods or services, the Company shall consider requirements as
follows:
The Company has a present right to payment for the promised goods or services
and the customer is presently obliged to pay for that;
The Company has transferred the legal ownership of the goods to the customer,
that is, the customer has the legal ownership to the goods;
The Company has transferred physical possession of the goods to the customer,
that is, the customer has taken possession of the goods;
The Company has transferred the main risks and rewards of ownership of the
goods to the customer, that is, the customer has the main risks and rewards of
Notes of Financial Report Page 36
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
ownership of the goods;
The customer has accepted the promised goods or services.
The Company determines whether it is the principal responsible person or agent at
the time of the transaction according to whether it has control over the goods or
services before transferring them to customers. If the Company can control the
goods or services before transferring them to customers, the Company is the main
responsible person and recognizes the income according to the total consideration
received or receivable; Otherwise, the Company, acting as an agent, shall recognize
revenue at the amount of commission or handling fee it is expected to be entitled
to receive.
2. Disclosure of specific revenue recognition methods and measurement methods
according to business types
Commodity sales contracts between companies and customers usually only contain
performance obligations to transfer goods or services such as steel. Such
performance obligations belong to performance obligations performed at a certain
point in time, and the Company recognizes revenue at the point when customers
obtain control over related goods or services. When judging whether customers
have acquired control over goods or services, the company considers the following
indications:
The Company obtains the right to collect money at present, the legal ownership of
the commodity is transferred to the customer, the physical assets of the commodity
are transferred to the customer, the Company transfers the main risks and rewards
of the ownership of the commodity to the customer, and the customer has accepted
the commodity.
(XXIV) Contract costs
Contract costs include costs to fulfill a contract and incremental costs of obtaining a
contract.
If the costs incurred in fulfilling a contract with a customer are not within the scope of
another Standard, for example, Inventories, Property, Plant and Equipment or Intangible
Assets, the Company shall recognize an asset from the costs incurred to fulfil a contract
Notes of Financial Report Page 37
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
only if those costs meet all of the following criteria:
the costs relate directly to a contract or to an expected contract;
the costs generate or enhance resources of the Company that will be used in satisfying
performance obligations in the future; and
the costs are expected to be recovered.
The Company shall recognize as an asset the incremental costs of obtaining a contract with
a customer if the Company expects to recover those costs.
An asset recognized in accordance with contract costs shall be amortized in consistence
with the transfer to the customer of the goods or services to which the asset relates. The
Company may recognize the incremental costs of obtaining a contract as an expense when
incurred if the amortization period of the asset is one year or less.
The Company shall recognize an impairment loss in profit or loss to the extent that the
carrying amount of an asset related to contract assets exceeds:
1. the remaining amount of consideration that the Company expects to receive in
exchange for the goods or services to which the asset relates; less
2. the costs that relate directly to providing those goods or services and that have not been
recognized as expenses.
The Company shall recognize in profit or loss a reversal of some or all of an impairment
loss previously recognized when the impairment conditions no longer exist or have
improved. The increased carrying amount of the asset shall not exceed the carrying
amount if no impairment loss had been recognized previously.
(XXV) Government grants
1. Types
Government grants mean the monetary or non-monetary assets obtained free of
charge by the Company from the government. Government grants consist of
government subsidies pertinent to assets and government subsidies pertinent to
income.
Government grants related to assets are government grants acquired by the
Notes of Financial Report Page 38
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Company for the acquisition or other formation of long-term assets. Government
grants related to income are government grants other than those related to assets.
The specific criteria for the Company to classify government grants as asset-related
are: government grants acquired by the enterprise and used to acquire or otherwise
form long-term assets.
The criteria of the Company recognizing the government grants related to income
is: In addition to government grants related to assets, government grants that have
been clearly targeted for subsidies.
For government documents that do not specify the object of the grant, the
Company classifies the government grant as asset-related or income-related based
on the following judgment: if it can form a long-term asset, the portion of the
government grant that corresponds to the value of the asset is treated as an asset-
related government grant and the rest as an income-related government grant; if it
is difficult to distinguish, the government grant as a whole is treated as an income-
related government grant.
2. Time point of recognition
Government grants related to assets are recognized when the Company can fulfill
the premises attached to it and the grants are actually received.
3. Accounting treatment
Government grants related to assets shall be used to offset the book value of the
related assets or recognized as deferred income. The government grants recognized
as deferred income shall be charged to current profit and loss (if they relate to
ordinary activities, to other income; if do not, to non-operating income) in
accordance with a reasonable and systematic method over the useful life of the
related assets;
Government grants related to income that is used to compensate for the related
costs and expenses or losses in subsequent periods shall be recognized as deferred
income and charged to current profit and loss (if they relate to ordinary activities,
to other income; if do not, to non-operating income) in the period in which the
Notes of Financial Report Page 39
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
related costs and expense or losses are recognized, or offset the related costs and
expenses or losses; for those used to compensate for the related costs and expenses
or losses that have been incurred, they shall be directly included in current profit
and loss (if they relate to ordinary activities, to other income; if do not, to non-
operating income) or offset the related costs and expenses or losses.
The policy discount loans obtained by the Company are divided into the following
two situations and are separately accounted for:
(1) If the government allocates discounted funds to the loan bank and the loan bank
provides loans to the Company at a policy preferential interest rate, the Company
will take the actual amount of the loan received as the entry value of the loan and
calculate the relevant borrowing costs based on the loan principal and the policy
preferential interest rate.
(2) If the government directly allocates the discounted funds to the Company, the
Company will write-down the relevant borrowing costs with the corresponding
discounts.
(XXVI) Deferred income tax assets/deferred income tax liabilities
Income tax includes current income tax and deferred income tax. Except for income tax
arising from business combinations and transactions or events that are directly included
in owner's equity (including other comprehensive income), the Company will include
current income tax and deferred income tax in current profit and loss.
Deferred income tax assets and deferred income tax liabilities are calculated and
confirmed based on the difference (temporary difference) between the tax base of assets
and liabilities and their book values.
An enterprise shall recognize the deferred income tax assets arising from a deductible
temporary difference to the extent of the amount of the taxable income which it is most
likely to be obtained and which can be deducted from the deductible temporary difference.
As for any deductible loss or tax deduction that can be carried forward to the next year,
the corresponding deferred income tax assets shall be determined to the extent that the
Notes of Financial Report Page 40
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
amount of future taxable income to be offset by the deductible loss or tax deduction to be
likely obtained.
Deferred income tax liabilities are recognized for taxable temporary differences, except in
exceptional circumstances.
Special circumstances in which deferred income tax assets or deferred income tax
liabilities are not recognized include:
The initial recognition of goodwill.
Transactions or events that are neither business combinations nor, when they occur,
affect accounting profit and taxable income (or deductible losses).
For taxable temporary differences related to investments in subsidiaries, associates and
joint ventures, deferred income tax liabilities are recognized, unless the Company can
control the timing of the reversal of the temporary differences and the temporary
differences are likely not to be transferred back into the foreseeable future. For deductible
temporary differences related to investments in subsidiaries, associates and joint ventures,
when the temporary differences are likely to be reversed in the foreseeable future and are
likely to be used to deduct the taxable income of deductible temporary differences in the
future, income tax assets are recognized.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities
are measured at the applicable tax rate during the period when the relevant assets are
expected to be recovered or the relevant liabilities are expected to be recovered in
accordance with the provisions of the tax law.
On the balance sheet date, the Company reviews the book value of deferred income tax
assets. If it is probable that sufficient taxable income cannot be obtained in the future to
offset the benefits of deferred income tax assets, the book value of the deferred income
tax assets shall be written down. When it is possible to obtain sufficient taxable income,
the reduced amount shall be reversed.
When the Company has the statutory right to settle on a net basis and intends to settle on
a net basis or to obtain assets and pay off liabilities simultaneously, the current income tax
Notes of Financial Report Page 41
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
assets and current income tax liabilities are presented at the net amount after offsetting.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities
are stated at the net of offsetting amounts when the following conditions are also met:
The taxable entity has the legal right to settle current income tax assets and current
income tax liabilities on a net basis;
Deferred income tax assets and deferred income tax liabilities relate to income taxes
levied by the same taxation authority on the same taxable entity or on different taxable
entities, but in each future period in which it is significant that the deferred income tax
assets and liabilities reverse, the taxable entities involved intend to settle the current
income tax assets and liabilities on a net basis or to acquire the assets and settle the
liabilities simultaneously.
(XXVII) Leases
A lease is a contract whereby the lessor transfers the right of usage on an asset to the
lessee for consideration within a certain period of time. On the contract commencement
date, the Company evaluates whether the contract is a lease or includes a lease. If one
party in the contract transfers the right to control the use of one or more identified assets
within a certain period in exchange for consideration, the contract is a lease or includes a
lease.
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. If the contract
includes both lease and non-lease parts, the Company, as the lessor and lessee, will split
the lease and non-lease parts for accounting treatment
1. The Company as a lessee
(1) Right-of-use assets
On the beginning date of the lease term, the Company recognizes the right-of-use
assets for leases other than short-term leases and low-value asset leases. The right-
of-use assets are initially measured at cost. This cost includes:
Initial measurement amount of lease liabilities;
For the lease payment paid on or before the beginning of the lease term, if
there is lease incentive, the relevant amount of lease incentive enjoyed shall
Notes of Financial Report Page 42
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
be deducted;
The initial direct costs incurred by the Company;
Costs expected to be incurred by the Company to dismantle and remove the
leased asset, to restore the site on which the leased asset is located or to
restore the leased asset to its agreed condition under the terms of the lease,
but do not include costs that are part of the costs incurred to produce the
inventory.
The Company subsequently depreciates right-of-use assets using the straight-line
method. If it is reasonably certain that ownership of the leased asset will be
obtained at the end of the lease term, the Company depreciates the leased asset
over its remaining useful life; otherwise, the leased asset is depreciated over the
shorter of the lease term or the remaining useful life of the leased asset.
For the principles by which the Company determines whether the right-of-use asset
has been impaired, please refer to Note “III. (XVIII) Impairment of long-term assets”.
(2) Lease liabilities
At the beginning of the lease term, the Company recognizes lease liabilities for
leases other than short-term leases and leases of low-value assets. The lease
liability is initially measured at the present value of outstanding lease payments.
Lease payments include:
Fixed payments (including actual 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 ratio;
The expected payment according to the residual value of the guarantee
provided by the Company;
The exercise price of the purchase option, provided that the Company is
reasonably certain that the option will be exercised;
Payments for exercising the option to terminate the lease, provided that the
lease term reflects that the Company will exercise the option to terminate
the lease.
The Company uses the interest rate implicit in the lease as the discount rate, but if
the interest rate implicit in the lease cannot be reasonably determined, the
Notes of Financial Report Page 43
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
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 term 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 the current profit and loss or the cost of related assets
when they are actually incurred.
After the commencement date of the lease term, the Company shall re-measure
the lease liabilities and adjust the corresponding right-of-use assets under the
following circumstances. If the book value of the right-of-use assets has been
reduced to zero, but the lease liabilities still need to be further reduced, the
difference is included in the current profit and loss:
When there is a change in the evaluation results of the purchase option, lease
renewal option or termination option, or when the actual exercise of the
aforementioned options is inconsistent with the original evaluation result, the
Company shall calculate the lease payment amount after the change and the
revised discounted value. Remeasure the lease liability at the present value of
the rate calculation;
When the actual fixed payment changes, the estimated payable amount of the
guaranteed residual value changes, or the index or ratio used to determine the
lease payment changes, the Company re-measures the lease liability at the
present value of the changed lease payments and the original discount rate.
However, where changes in lease payments resulting from changes in floating
interest rates, a revised discount rate is used to calculate the present value.
(3) Short-term leases and low-value asset leases
The Company chooses not to recognize right-of-use assets and lease liabilities for
short-term leases and low-value asset leases, and includes the relevant lease
payments in the current profit and loss or related asset costs on a straight-line basis
over each period of the lease term. Short-term leases refer to leases with a lease
term of not more than 12 months and excluding purchase options on the
Notes of Financial Report Page 44
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
commencement date of the lease term. A low-value asset lease refers to a lease
with a lower value when a single-leased asset is a brand-new asset. If the Company
subleases or expects to sublease the leased assets, the original lease is not a low-
value asset lease.
(4) Lease changes
If the lease changes 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 adding the right to
use one or more leased assets;
The increased consideration is equivalent to the amount adjusted by the
individual price of the expanded part of the lease scope according to the
contract.
If the lease modification is not accounted for as a separate lease, on the effective
date of the lease modification, the Company re-allocates the consideration of the
modified contract, re-determines the lease term, and re-calculates the lease liability
based on the present value of the modified lease payments and the revised discount
rate.
If the lease modification leads to the narrowing of the lease scope or the shortening
of the lease term, the Company will reduce the book value of the right-of-use assets
accordingly, and include the relevant gains or losses on partial or complete
termination of the lease into the current profit and loss. If other lease changes result
in re-measurement of lease liabilities, the Company adjusts the book value of the
right-of-use assets accordingly.
2. The Company as a lessor
On the lease commencement date, the Company classifies leases into financial
leases and operating leases. A financial lease is a lease that essentially transfers
almost all the risks and rewards associated with the ownership of the leased asset,
regardless of whether ownership is ultimately transferred. Operating leases refer to
leases other than financial leases. When the Company acts as a sublease lessor, it
classifies the sublease based on the right-of-use asset arising from the original lease.
Notes of Financial Report Page 45
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(1) Accounting treatment of operating leases
The Company recognizes lease receipts from operating leases as rental income
using the straight-line method for each period of the lease term. Initial direct costs
capitalized in connection with operating leases are amortized over the lease term
on the same basis as rental income is recognized and are recognized in current profit
and loss. Variable lease payments not included in the amount of lease receipts are
recognized in current profit and loss when they are actually incurred. When there
is a change in operating leases, the Company accounts for it as a new lease from the
effective date of the change, and the amount of lease receipts received in advance
or receivable in relation to the lease prior to the change is treated as a receipt under
the new lease.
(2) Accounting treatment of financial lease
On the lease commencement date, the Company recognizes the financial lease
receivables for the financial lease and derecognizes the financial lease assets. When
the Company initially measures the financial lease receivables, the net investment
in the lease is regarded as the entry value of the financial lease receivables. The net
lease investment is the sum of the unguaranteed residual value and the present
value of the lease receipts not yet received at the commencement date of the lease
term, discounted at the interest rate implicit in the lease.
The Company calculates and recognizes interest income over the lease term at a
fixed periodic rate. Derecognition and impairment of finance lease receivables are
accounted for in accordance with Note “V. 10. Financial assets and financial
liabilities".
Variable lease payments not included in the measurement of net investment in
leases are charged to current profit and loss when actually incurred.
If the financial lease is changed and the following conditions are met at the same
time, the Company will account for the change as a separate lease:
The change expands the scope of the lease by increasing the right to use one
or more of the leased assets;
Notes of Financial Report Page 46
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
The increased consideration is equivalent to the amount adjusted by the
individual price of the expanded part of the lease scope according to the
contract.
If the modification of a financial lease is not accounted for as a separate lease, the
Company shall deal with the modified lease under the following circumstances:
If the change had been effective on the inception date of the lease and the
lease would have been classified as an operating lease, the Company shall
account for it as a new lease from the effective date of the lease change and
use the net investment in the lease prior to the effective date as the book value
of the leased asset;
If the change had been effective at the inception date of the lease and the
lease would have been classified as a finance lease, the Company shall account
for it in accordance with the policy on modification or renegotiation of
contracts as described in Note “III. (X) Financial tools”.
(XXVIII) Debt restructuring
1. The Company as creditor
The Company shall terminate the recognition of creditor's rights when the
contractual right to receive cash flow from creditor's rights terminates. If debt
restructuring is carried out by means of paying off debts with assets or converting
debts into equity instruments, the Company shall recognize the relevant assets
when they meet their definition and recognition conditions.
When debt restructuring is carried out by means of liquidating debts with assets,
the Company shall measure the transferred non-financial assets at cost when
initially recognizing them. The cost of inventory includes the fair value of the waiver
of creditor's rights and other costs directly attributable to the asset, such as taxes,
transportation fees, loading and unloading fees, insurance premiums, etc., which
are incurred to bring the asset to its current position and state. The cost of investing
in an associate or joint venture includes the fair value of the waiver of claims and
other costs such as taxes directly attributable to the asset. The cost of investment
real estate includes the fair value of abandoned creditor's rights and other costs
such as taxes directly attributable to the asset. The cost of fixed assets includes the
Notes of Financial Report Page 47
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
fair value of waiving creditor's rights and other costs that can be directly attributed
to the assets, such as taxes, transportation fees, loading and unloading fees,
installation fees, professional service fees, etc. The cost of biological assets includes
the fair value of waived creditor's rights and other costs such as taxes,
transportation fees and insurance premiums that can be directly attributed to the
assets. The cost of intangible assets includes the fair value of the waiver of claims
and other costs that can be directly attributable to taxes and other costs incurred in
making the assets achieve their intended purposes. If debt restructuring by
converting debt into equity instruments causes creditors to convert their creditor's
rights into equity investment in joint ventures or joint ventures, the Company shall
measure its initial investment cost according to the fair value of abandoned
creditor's rights and other costs such as taxes directly attributable to the assets. The
difference between the fair value and the book value of the abandoned creditor's
rights is included in the current profits and losses. In case of debt restructuring by
modifying other clauses, the Company shall recognize and measure the
restructured creditor's rights according to "III, (X) Financial tools" in this note.
In case of debt restructuring by means of paying off debts or combining multiple
assets, the Company first recognizes and measures the transferred financial assets
and restructured creditor's rights according to "III. (X) Financial Instruments" in this
note, and then distributes the net amount of the fair value of the abandoned
creditor's rights after deducting the confirmed amount of the transferred financial
assets and restructured creditor's rights according to the fair value ratio of various
assets other than the transferred financial assets, and determines the cost of each
asset according to the aforesaid method. The difference between the fair value and
the book value of the abandoned creditor's rights shall be included in the profits
and losses of the current period.
2. The Company as debtor
The Company shall terminate the recognition of the debt when the current
obligation of the debt is discharged.
If debt restructuring is carried out by means of paying off debts with assets, the
Notes of Financial Report Page 48
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Company shall derecognize the relevant assets and the paid-off debts when they
meet the conditions for derecognition, and the difference between the book value
of the paid-off debts and the book value of the transferred assets shall be included
in the profits and losses of the current period.
In case of debt restructuring by converting debts into equity instruments, the
Company shall derecognize the debts paid off when they meet the conditions for
derecognition. When the Company initially recognizes equity instruments, it shall
measure them according to the fair value of equity instruments. If the fair value of
equity instruments cannot be reliably measured, it shall be measured according to
the fair value of debts paid off. The difference between the book value of the debt
paid off and the amount recognized by the equity instrument shall be included in
the profits and losses of the current period.
In case of debt restructuring by modifying other terms, the Company shall recognize
and measure the restructured debt according to "III. (X) Financial Instruments" in
this note.
If debt restructuring is carried out by means of paying off debts or combining
multiple assets, the Company shall recognize and measure equity instruments and
restructured debts according to the aforesaid methods, and the difference between
the book value of the paid-off debts and the book value of the transferred assets
and the sum of the recognized amounts of equity instruments and restructured
debts shall be included in the profits and losses of the current period.
(XXIX) Other significant accounting policies and accounting estimates
Major accounting estimates and judgements
When preparing financial statements, the Company's Management needs to use estimates
and assumptions, which will affect the application of accounting policies and the amount
of assets, liabilities, income and expenses. Actual conditions may differ from these
estimates. The Management of the Company continuously evaluates the judgment of key
assumptions and uncertainties involved in the estimation, and the impact of changes in
accounting estimates will be recognized in the current and future periods.
Notes of Financial Report Page 49
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
The main uncertainties in the estimated amount are as follows:
1. Measurement of expected credit losses
The Company calculates the expected credit loss through the default risk exposure and the
expected credit loss rate, and determines the expected credit loss rate based on the
default probability and the default loss rate. When determining the expected credit loss
rate, the Company uses internal historical credit loss experience and other data, and
adjusts the historical data in combination with current conditions and forward-looking
information. When considering forward-looking information, the indicators used by the
Company include the risk of economic downturn, the expected increase in unemployment
rate, changes in the external market environment, technological environment and
customer conditions. The Company regularly monitors and reviews assumptions related
to the calculation of expected credit losses.
2. Provision for decline in value of inventories
As mentioned in Note “III. (XI) Inventory” , the Company regularly estimates the net
realizable value of the inventory, and recognizes the difference in inventory cost higher
than the net realizable value. When estimating the net realizable value of inventory, the
Company considers the purpose of holding the inventory and uses the available
information as the basis for estimation, including the market price of the inventory and
the Company's past operating costs. The actual selling price, completion cost, sales
expenses and taxes of the inventory may change according to changes in market sales
conditions, production technology, or the actual use of the inventory. Therefore, the
amount of inventory depreciation reserve may change according to the above reasons.
Adjustments to the inventory impairment will affect the current profit and loss.
3. Impairment of other assets except inventory and financial assets
As mentioned in Note “III. (XVIII) Long-term Asset Impairment”, the Company performs an
impairment assessment on assets other than inventory and financial assets on the balance
sheet date to determine whether the recoverable amount of the asset has fallen to a lower
level than its book value. If the situation shows that the book value of the long-term assets
may not be fully recovered, the relevant assets will be deemed to be impaired and the
impairment loss will be recognized accordingly.
Notes of Financial Report Page 50
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
The recoverable amount is the higher of the net value of the fair value of the asset (or
asset group) minus the disposal expenses and the present value of the asset (or asset
group) 's expected future cash flow. Because the Company cannot reliably obtain the
public market price of assets (or asset groups), and cannot reliably and accurately estimate
the fair value of assets. Therefore, the Company regards the present value of the expected
future cash flow as the recoverable amount. When estimating the present value of future
cash flows, it is necessary to make a significant judgment on the output, selling price,
related operating costs of the products produced by the asset (or asset group), and the
discount rate used in calculating the present value. The Company will use all available
relevant information when estimating the recoverable amount, including the prediction of
output, selling price and related operating costs based on reasonable and supportable
assumptions.
4. Depreciation and amortization of assets such as fixed assets and intangible assets
As described in Note “III. (XIV) Fixed assets” and Note “III. (XVII) Intangible assets”, the
Company shall accrue depreciation for the fixed assets and amortization for intangible
assets within the useful life after considering their residual values. The Company regularly
reviews the useful life of related assets to determine the amount of depreciation and
amortization expenses to be included in each reporting period. The useful life of assets is
determined by the Company based on past experience with similar assets and in
combination with anticipated technological changes. If the previous estimates change
significantly, the depreciation and amortization expenses will be adjusted in the future.
5. Deferred income tax assets
When it is estimated that sufficient taxable income will be available in future periods to
utilize the unrecovered tax losses and deductible temporary differences, the Company
calculates and recognizes the related deferred income tax asset to the extent that it is
probable that taxable income will be available against which the unrecovered tax losses
and deductible temporary differences can be utilized, and on the basis of the income tax
rate applicable to the period in which the asset is expected to be recovered. The Company
is required to use judgment to estimate the timing and amount of future taxable income
and to make reasonable estimates and judgments about the applicable future income tax
rates in accordance with current tax policies and other relevant policies to determine the
amount of deferred income tax assets to be recognized. If the timing and amount of actual
Notes of Financial Report Page 51
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
profits to be generated in future periods or the actual applicable income tax rate differs
from the Management's estimates, such differences will have an impact on the amount of
deferred income tax assets.
(XXX) Changes in significant accounting policies and accounting estimates
1. Changes in significant accounting policies
(1) Implementation of the regulation that “Accounting treatment for deferred
income tax relating to assets and liabilities arising from a single transaction for
which no exemption from initial recognition applies” in Accounting Standards for
Business Enterprises No. 16.
On November 30th , 2022, the Ministry of Finance issued Interpretation of
Accounting Standard for Business Enterprises No. 16 (Cai Kuai [2022] No. 31,
hereinafter referred to as "Interpretation No. 16"), in which "Accounting treatment
for deferred income tax relating to assets and liabilities arising from a single
transaction for which no exemption from initial recognition applies" is effective
from January 1st , 2023; "Accounting treatment for the income tax effect of
dividends related to financial instruments classified as equity instruments by the
issuer" and "Accounting treatment for an enterprise that modifies a cash-settled
share-based payment to an equity-settled share-based payment" is effective from
the date of publication.
Interpretation No. 16 on single transactions (including lease transactions in which
the lessee initially recognizes a lease liability at the inception date of the lease and
records it in the right-of-use asset, and transactions in which an estimated liability
is recognized and recorded in the cost of the related asset because of the existence
of an abandonment obligation, such as a fixed asset, etc., hereinafter referred to as
single transactions to which this interpretation applies) that are not business
combinations, that affect neither accounting profit nor taxable income(or
deductible loss) at the time of the transaction and where the initial recognition of
assets and liabilities results in taxable temporary differences and deductible
temporary differences in equal amounts, and the provisions in Articles 11 (2) and
13 of Accounting Standards for Business Enterprises No. 18 - Income Tax concerning
the exemption of deferred income tax liabilities and deferred income tax assets for
Notes of Financial Report Page 52
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
initial recognition are not applicable. The enterprise should recognize the
corresponding deferred income tax liabilities and deferred income tax assets for the
taxable temporary differences and deductible temporary differences arising from
the initial recognition of assets and liabilities for the transaction when the
transaction occurs, in accordance with the relevant provisions of Accounting
Standards for Business Enterprises No. 18 - Income Tax and other relevant
regulations, respectively.
In case of taxable temporary differences and deductible temporary differences
arising from individual transactions applicable to the provisions between the
beginning of the earliest period reported in the financial statements for the first
time and the implementation date, as well as lease liabilities and right-to-use assets
recognized due to the individual transactions applicable to the provisions at the
beginning of the earliest period reported in the financial statements, and estimated
liabilities related to disposal obligations and corresponding related assets
recognized, the enterprise shall make adjustments in accordance with the
provisions.
The Company has conducted this Regulation since January 1st , 2023, the main
effects of this Regulation are as below:
The content and Accounts affected to the balance on January
reasons for changes 1st , 2022
Report items influenced
in accounting
Consolidated Parent company
estimates
The adjustment of Deferred income tax assets 360,091,312.08 360,091,312.08
the operating lease
existing before the Deferred income tax
first execution date liabilities 360,091,312.08 360,091,312.08
by the company as
the lessee.
The content Consolidated Parent company
and reasons
Statement
for changes December December December December
items
in 31st , 31st , 31st , 31st ,
affected
accounting 2023/FY2023 2022/FY2022 2023/FY2023 2022/FY2022
estimates
The Deferred
adjustment income tax 340,687,848.63 344,997,678.47 340,687,848.63 344,997,678.47
of the assets
operating Deferred
329,904,044.87 344,997,678.47 329,904,044.87 344,997,678.47
lease income tax
Notes of Financial Report Page 53
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
The content Consolidated Parent company
and reasons
Statement
for changes December December December December
items
in 31st , 31st , 31st , 31st ,
affected
accounting 2023/FY2023 2022/FY2022 2023/FY2023 2022/FY2022
estimates
existing liabilities
before the
first
execution
date by the
company as
the lessee.
2. Changes in significant accounting estimates
There were no changes in main accounting estimates in the reporting period.
IV. Taxes
(I) Main tax categories and tax rates
Tax
Type of tax Tax base
rate
(%)
Output VAT is calculated on the basis of the income
from the sale of goods and taxable services in 6, 9,
Value-added tax (VAT) 13
accordance with the provisions of the tax law, and
after subtracting the deductible input VAT for the
current period, the difference is VAT payable
City maintenance and construction tax Based on VAT actually paid 7
Corporate income tax For details, see the table below
Disclosure of information if there are taxable entities with different corporate income tax
rates:
Name of taxpayer Income tax rate (%)
Bengang Steel Plates Co.,Ltd. 25
Shanghai Bengang Metallurgy Technology Co., Ltd.
25
Benxi Bengang Steel Sales Co., Ltd.
25
BX Steel Posco Cold Rolled Sheet Co., Ltd.
15
Notes of Financial Report Page 54
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Name of taxpayer Income tax rate (%)
Tianjin Bengang Special Steel Sales Co., Ltd.
25
Changchun Bengang Steel & Iron Sales Co., Ltd.
25
Changchun Bengang Steel & Iron Trading Co., Ltd.
25
Guangzhou Bengang Steel & Iron Trading Co., Ltd
25
Dalian Benruitong Automobile Material Technology Co., Ltd
25
Shenyang Bengang Metallurgy Science and Technology Co., Ltd
25
(II) Tax incentives
1. Subsidiary company of the Company, BX Steel Posco Cold Rolled Sheet Co., Ltd., has
gained high-tech enterprise certificate. Certificate number is GR202321001624; The
validity is from December 20th , 2023 to December 20th , 2026. Enterprise income tax of
BX Steel Posco Cold Rolled Sheet Co., Ltd shall be paid at a reduced rate of 15%.
2. On December 30th , 2021, the Ministry of Finance and the State Administration of
Taxation issued the Announcement on Improving the Value-added Tax Policy for
Comprehensive Utilization of Resources (Announcement No.40 of the Ministry of Finance
and the State Administration of Taxation of the Ministry of Finance, 2021), which will be
implemented from March 1st , 2022. The original Notice of the Ministry of Finance and the
State Administration of Taxation on Printing and Distributing the Preferential Catalogue of
Value-added Tax on Products and Services for Comprehensive Utilization of Resources
(Caishui [2015] No.78) Electricity and heat produced and sold by Energy Development
Branch of Benxi Iron and Steel Co., Ltd., a branch of the Company, belong to the items
listed in the Preferential Catalogue of Value-added Tax on Products and Services for
Comprehensive Utilization of Resources, and the immediate VAT refund policy is applicable.
Notes of Financial Report Page 55
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
V. Notes to the items of the consolidated financial statements
(I) Cash and cash equivalent
Item Closing balance Opening balance
Cash on hand
Cash in bank 1,184,774,971.52 1,296,662,683.20
Other cash and cash equivalents 1,009,879,189.82 164,482,958.67
Total 2,194,654,161.34 1,461,145,641.87
Including: Total money depoited
overseas
Money depoited overseas and
remittance of the money is constrained
Other notes: Among the monetary funds at the end of the period, cash and cash
equivalents not included in the cash flow statement mainly include bank acceptance bill
deposit of RMB909,879,189.82 and letter of credit deposit of RMB100,000,000.00 .
(II) Notes receivable
1. Notes receivable listed by categories
Item Closing balance Opeing balance
Bank acceptance bill 367,402,376.67 139,442,122.88
Commercial acceptance bill 86,157,718.82 290,265,051.82
Total 453,560,095.49 429,707,174.70
Notes of Financial Report Page 56
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
2. Notes receivable classified and disclosed by the bad debt accrual method
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Accrual
Accrual Book balance Ratio Book balance
Amount Ratio (%) Amount Amout Amount ratio
ratio (%) (%)
(%)
Provision for bad
debts on individual
basis
Provision for bad
debts by the
453,560,095.49 100.00 453,560,095.49 429,707,174.70 100.00 429,707,174.70
combination of credit
risk characteristics
Total 453,560,095.49 100.00 453,560,095.49 429,707,174.70 100.00 429,707,174.70
Notes of Financial Report Page 57
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Provision for bad debts by the combination of credit risk characteristics:
Accrual items combined:
Closing balance
Name
Notes receivable Bad debt provision Accrual ratio （%）
Commercial 86,157,718.82
acceptance bill
Bank acceptance 367,402,376.67
bill
Total 453,560,095.49
3. Notes receivable pledged by the Company at the end of the period
Item Amount pledged at the end of the period
Bank acceptance bill 218,427,117.76
Commercial acceptance bill
Total 218,427,117.76
4. Notes receivable endorsed or discounted by the Company at the end of the period
and not yet due at the balance sheet date
Amount derecognized at the Amount not derecognized at
Item
end of the period the end of the period
Bank acceptance bill 3,449,086,820.87 262,875,431.13
Commercial acceptance bill
Total 3,449,086,820.87 262,875,431.13
(III) Accounts receivable
1. Accounts receivable disclosed by aging
Aging Closing balance Opening balance
Within 1 year 1,047,842,246.01 892,035,646.81
1 to 2 years 322,945,580.33 14,717,227.92
2 to 3 years 647,190.77 5,931,757.76
3 to 4 years 5,690,114.98 304,038,419.97
4 to 5 years 300,882,005.30 16,776,684.51
Over 5 years 98,724,184.94 135,333,377.50
Subtotal 1,776,731,322.33 1,368,833,114.47
Less: Bad debt provision 448,198,723.86 471,602,218.41
Total 1,328,532,598.47 897,230,896.06
Notes of Financial Report Page 58
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
2. Accounts receivable classified and disclosed by the bad debt accrual method
Closing balance Opening balance
Book balance Bad debt provision Book value Bad debt provision
Category Accrual Accrual
Ratio Book value Ratio Book value
Amount Amount ratio Amount Amount ratio
（%） （%）
（%） （%）
Provision for bad
debts made on an 353,419,325.80 19.89 353,419,325.80 100.00 353,419,325.80 25.82 353,419,325.80 100.00
individual basis
Provision for bad
debts by the
portfolio of credit 1,423,311,996.53 80.11 94,779,398.06 6.66 1,328,532,598.47 1,015,413,788.67 74.18 118,182,892.61 11.64 897,230,896.06
risk
characteristics:
Including
Aging portfolio 1,423,311,996.53 80.11 94,779,398.06 6.66 1,328,532,598.47 1,015,413,788.67 74.18 118,182,892.61 11.64 897,230,896.06
Total 1,776,731,322.33 100.00 448,198,723.86 1,328,532,598.47 1,368,833,114.47 100.00 471,602,218.41 897,230,896.06
Notes of Financial Report Page 59
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Important accounts receivable whose provision for bad debts was made on an
individual basis：
Closing balance Opening balance
Accru
Accru
Name Provision for al Book Provision for
Book balance al
bad debt ratio balance bad debt
basis
(%)
It has
been
Benxi discon
Nanfen tinued
Xinhe and is
100.0 48,196,244.
Metallurgica 48,196,244.68 48,196,244.68 not 48,196,244.68
0 68
l Furnace expec
Material ted to
Co., Ltd. be
recov
ered
It has
been
discon
tinued
Brilliance
and is
Auto Group 305,223,081.1 305,223,081.1 100.0 305,223,081 305,223,081.1
not
Holding Co., 2 2 0 .12 2
expec
Ltd.
ted to
be
recov
ered
353,419,325.8 353,419,325.8 353,419,325 353,419,325.8
Total
0 0 .80 0
Provision for bad debt by portfolio of credit risk characteristics:
Portfolio accrual item: Aging portfolio
Closing balance
Item
Accounts receivable Bad debt provision Accrual（%）
Within 1 year
1,047,842,246.01 10,478,422.46 1.00
(inclusive)
1 to 2 years
322,945,580.33 32,294,558.03 10.00
(iclusive)
2 to 3 years
647,190.77 129,438.15 20.00
(inclusive)
3 to 4 years
845,982.97 845,982.97 100.00
(inclusive)
4 to 5 years
503,056.19 503,056.19 100.00
(inclusive)
Over 5 years 50,527,940.26 50,527,940.26 100.00
Total 1,423,311,996.53 94,779,398.06
3. Provision for bad debts accrued, recovered or reversed in the current period
Notes of Financial Report Page 60
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Amount of change in the current period
Opening Recovery
Category Closing balance
balance Accrual or Write-off Others
reversal
Provision
for bad
-
debts on 471,602,218.41 1,447,918.92 448,198,723.86
21,955,575.63
accounts
receivable
-
Total 471,602,218.41 1,447,918.92 448,198,723.86
21,955,575.63
Of which the amount of provision for bad debts recovered or reversed in the current
period is material: Non.
4. Actual write-off of accounts receivable in the current period
Item Write-off amount
Actual write-off of accounts receivable 1,447,918.92
Of which significant write-offs of accounts receivable:
Whether
Nature of Write-off the amount
Name of the Write-off Reasons for
payment procedures arises from
company amount write-off
receivable performed related
transactions
Legal advice
Jining Forging Payment and working
461,229.33 Cancelled No
Center for goods conference
minute
A suspended
company that is
Xuzhou unreachable for a
Jinshanqiao long time without Legal advice
Development Payment business and working
200,265.48 No
Zone Yong'an for goods transactions and conference
Metal Material included in the minute
Corporation management of
account write-
offs
Shanghai Legal advice
Bengang Industry Payment and working
193,625.29 Cancellation No
and Trade for goods conference
Company minute
A suspended
company that is
ORDINS unreachable for a
Legal advice
Northeast long time without
Payment and working
Company Fushun 155,616.74 business No
for goods conference
Technology and transactions and
minute
Trade Center included in the
management of
account write-
Notes of Financial Report Page 61
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Whether
Nature of Write-off the amount
Name of the Write-off Reasons for
payment procedures arises from
company amount write-off
receivable performed related
transactions
offs
Tonghua Legal advice
Machinery Payment and working
141,139.39 Cancelled No
Factory for Grain for goods conference
and Oils minute
iegal advice
Bengang Yantai rayment
and working
Marketing Co., for goods 138,378.96 Cancelled No
conference
Ltd
minute
A suspended
company that is
unreachable for a
Shandong
long time without Legal advice
Zhucheng
Payment business and working
Industrial Supply 87,085.43 No
for goods transactions and conference
and Marketing
included in the minute
Company
management of
account write-
offs
Tieling Jinlong
Sale Agency for Legal advice
Petroleum Payment and working
24,608.99 Cancelled No
Pipeline for goods conference
Mechanical minute
Products
Shenzhen
Legal advice
Zhongtianda
Payment and working
Product Industry 20,441.96 Cancelled No
for goods conference
and Trade Co.,
minute
Ltd.
A suspended
company that is
unreachable for a
long time without Legal advice
Benxi Steel
Payment business and working
Material Sale 7,167.87 No
for goods transactions and conference
Agency
included in the minute
management of
account write-
offs
Legal advice
Shunde Payment
and working
Xiqiangsheng for goods 6,997.93 Cancelled No
conference
Mould Co., Ltd.
minute
Heilongjiang Legal advice
Hua'an Industry Payment and working
5,637.27 Cancelled No
Group for goods conference
Corporation minute
Guagdong
Zhaoqing
Construction Legal advice
Materials and Payment and working
5,566.44 Cancelled No
Minerial Product for goods conference
Company for minute
Township
Enterprises
Notes of Financial Report Page 62
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Whether
Nature of Write-off the amount
Name of the Write-off Reasons for
payment procedures arises from
company amount write-off
receivable performed related
transactions
Ningbo Hongkai
Payment
Iron and Steel 157.82 Irrecoverable No No
for goods
Co., Ltd.
Shanghai
Payment
Honghou Trade 0.02 Irrecoverable No No
for goods
Co., Ltd.
Total 1,447,918.92
5. Accounts receivable of the top five closing balances collected by arrears
Percentage
of total
Closing closing
Closing balance
Closing balance balance balance of Closing balance
Name of the of accounts
of accounts of accounts of bad debt
company receivable and
receivable contract receivale provision
contract assets
assets and
contract
assets (%)
Bengang
Group
International
854,482,902.28 854,482,902.28 48.09 33,128,484.15
Economy and
Trade Co., Ltd.
Brilliance Auto
Group Holding 305,223,081.12 305,223,081.12 17.18 305,223,081.12
Co., Ltd.
Liaoning
Hengtong
Metallurgical
162,404,481.01 162,404,481.01 9.14 1,637,032.46
Equipment
Manufacturing
Co., Ltd.
Liaoning North
Coal Chemical
Industry 79,511,150.05 79,511,150.05 4.48 795,111.50
(Group) Co.,
Ltd.
Benxi North
Iron Industry 52,161,339.98 52,161,339.98 2.94 519,656.39
Co., Ltd.
Total 1,453,782,954.44 1,453,782,954.44 81.82 341,303,365.62
(IV) Receivables financing
1. Receivables financing listed by categories
Item Closing balance Opening balance
Notes receivable 806,822,622.43 137,591,996.02
Accounts receivable - -
Notes of Financial Report Page 63
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Item Closing balance Opening balance
Total 806,822,622.43 137,591,996.02
2. Receivables financing increase and decrease at current period and changes of fair
values
Accumul
ated loss
reserves
Current Othe
recogniz
Closing Increase in period r Closing
Item ed in
balance current period derecognizati chan balance
other
on ges
compreh
ensive
income
Notes
137,591,9 4,000,009,820.2 3,330,779,193 806,822,622.4
receivabl - -
96.02 9 .88 3
e
Accounts
receivabl - - - - -
e
137,591,9 4,000,009,820.2 3,330,779,193 806,822,622.4
Total
96.02 9 .88 3
3. Receivables financing endorsed or discounted by the Company at the end of the
period and not yet due at the balance sheet date
Amount derecognized the Amount not derecognized
Item
end of the period the end of the period
Bank acceptance bill 2,583,907.68
Commercial acceptance bill
Total 2,583,907.68
(V) Prepayments
1. Prepayments are presented by aging
Closing balance Opening balance
Aging
Amount Percentage(%) Amount Percentage(%)
Within 1 year 647,043,310.27 95.88 1,235,907,044.32 99.10
1 to 2 years 22,062,469.17 3.27 8,892,828.10 0.71
2 to 3 years 3,389,343.94 0.50 2,301,638.78 0.18
Over 3 years 2,377,875.91 0.35 76,237.13 0.01
Total 674,872,999.29 100.00 1,247,177,748.33 100.00
As at the end of the reporting period, there was no significant prepayment aged
more than one year.
Notes of Financial Report Page 64
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
2. Top five prepayments with closing balances, grouped by prepaid objects
Percentage of total
Prepaid objective Closing balance closing balance of
prepayments (%)
Shanxi Coking Coal Group Co., Ltd. 122,350,040.34 16.40
Shanxi Coking Coal Energy Group Co., Ltd. 97,774,410.87 13.10
Shanxi Coking Coal Saling Co., Ltd. 97,556,387.16 13.07
China Railway Shenyang Group Co.,Ltd.
78,832,178.99 10.57
Shenyang Freight Center
Shanxi Coking Co., Ltd. 41,000,000.00 6.08
Total 437,513,017.36 64.84
(VI) Other receivables
Item Closing balance Opening balance
Interest receivable
Devidends receivable
Other receivables 318,793,157.58 127,198,692.92
Total 318,793,157.58 127,198,692.92
1. Other receivables
(1) Disclosure by aging
Aging Closing balance Opeing balance
Within 1 year 288,095,370.24 85,596,605.22
1 to 2 years 35,231,832.41 38,267,869.02
2 to 3 years 6,078,775.88 3,519,908.21
3 to 4 years 3,125,628.24 573,902.12
4 to 5 years 229,028.24 10,653,923.17
Over 5 years 61,270,101.82 52,719,681.94
Subtotal 394,030,736.83 191,331,889.68
Less: Provision for bad debt 75,237,579.25 64,133,196.76
Total 318,793,157.58 127,198,692.92
Notes of Financial Report Page 65
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(2) Classification of other receivables by nature of payment
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Accrual Accrual
Percentage Book value Percentage Book value
Amount Amount ratio Amount Amount ratio
（%） （%）
（%） （%）
Bad debt
provision is
made on an 18,245,545.94 4.63 18,245,545.94 100.00 15,031,598.34 7.86 15,031,598.34 100.00
individual
basis
Bad debt
provision is
375,785,190.89 95.37 56,992,033.31 15.17 318,793,157.58 176,300,291.34 92.14 49,101,598.42 27.85 127,198,692.92
made on a
portfolio basis
Including:
Aging portfolio 375,513,463.19 95.30 56,992,033.31 15.18 318,521,429.88 141,980,250.55 74.21 49,101,598.42 34.58 92,878,652.13
Other
271,727.70 0.07 271,727.70 34,320,040.79 17.94 34,320,040.79
portfolio
Total 394,030,736.83 100.00 75,237,579.25 318,793,157.58 191,331,889.68 100.00 64,133,196.76 127,198,692.92
Notes of Financial Report Page 66
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Significant other receivables whose provision for bad debts was made on an
individual basis：
Closing balance
Name Provision for Accrual ratio
Book balance Accrual basis
bad debt (%)
Benxi Iron and Steel
(Group) No. 3 Bankrupcy
12,504,978.59 12,504,978.59 100.00
Architectural Engineering liquidation
Co., Ltd.
Benxi Iron and Steel
(Group) No. 1 Bankrupcy
3,247,307.07 3,247,307.07 100.00
Architectural Engineering liquidation
Co., Ltd.
Xuzhou Jinshanqiao
Development Zone Metal 5,670.77 5,670.77 100.00 Irrecoverable
Material Corporation
Xuzhou Railway Material
6,567.20 6,567.20 100.00 Irrecoverable
Factory
Harbin Xuda Company 10,644.72 10,644.72 100.00 Irrecoverable
Jining Economy and Trade
Joint Development 12,831.81 12,831.81 100.00 Irrecoverable
Corporation
Zhangdian Iron and Steel
15,167.78 15,167.78 100.00 Irrecoverable
Headquarter Factory
Zibo Zhouchun Welfare
15,666.59 15,666.59 100.00 Irrecoverable
Spring Factory
Weifang Head Office of
25,179.84 25,179.84 100.00 Irrecoverable
Constructive Materials
Jiaozhou Zhenxing Metal
411,891.80 411,891.80 100.00 Irrecoverable
Product Plant (Weifang)
Historical debts 158,680.98 158,680.98 100.00 Irrecoverable
Jiaozhou Zhenxing Metal
32,989.12 32,989.12 100.00 Irrecoverable
Product Plant
Tai'an Taishan Metal
Constructive Material 41,145.75 41,145.75 100.00 Irrecoverable
Company
Xuzhou Guanghuan Steel
49,016.73 49,016.73 100.00 Irrecoverable
Pipeline Company
Guan County Cold Rolling
Plate and Strip 52,602.25 52,602.25 100.00 Irrecoverable
Headquarter Factory
Weifang Nonggao
68,000.00 68,000.00 100.00 Irrecoverable
Industry and Trade Center
Benxi Fangyuan Provition
80,000.00 80,000.00 100.00 Irrecoverable
Management Agent
Weifang Sanfeng Steel
81,657.46 81,657.46 100.00 Irrecoverable
Pipeline Co., Ltd.
Qingdao Liduo Economy
133,163.36 133,163.36 100.00 Irrecoverable
and Trade Co., Ltd.
Weifang Mingxin Trading
197,900.80 197,900.80 100.00 Irrecoverable
and Supply Company
Gao Pengquan 204,294.00 204,294.00 100.00 Irrecoverable
Zhangdian Jinkun Steel
231,910.95 231,910.95 100.00 Irrecoverable
Plate Management Agent
Harbin Band Steel Factory 403,559.70 403,559.70 100.00 Irrecoverable
Bengang Group
6,617.52 6,617.52 100.00 Irrecoverable
International Economy
Notes of Financial Report Page 67
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Closing balance
Name Provision for Accrual ratio
Book balance Accrual basis
bad debt (%)
and Trade Co., Ltd.
Changchun Kanghong
85,277.50 85,277.50 100.00 Irrecoverable
Metal Material Co., Ltd.
Irrecoverable
Historical debt 84,164.75 84,164.75 100.00
payment
China Railway Shenyang
Irrecoverable
Bureau Group Co., Ltd. 53,712.42 53,712.42 100.00
payment
Benxi Freight Center
FAW Jiefang Automobile
Irrecoverable
Co., Ltd. Procurement 24,648.73 24,648.73 100.00
payment
Department
Jilin Province Jinghai
Irrecoverable
Material Distribution Co., 297.75 297.75 100.00
payment
Ltd
Total 18,245,545.94 18,245,545.94
Provision for bad debt by portfolio of credit risk characteristics:
Portfolio accrual item: Aging portfolio
Closing balance
Item
Other receivables Bad debt provision Accrual ratio（%）
Within 1 year
285,331,382.26 2,864,723.85 1.00
(inclusive)
1 to 2 years
35,230,832.41 3,523,083.24 10.00
(inclusive)
2 to 3 years
5,433,777.88 1,086,755.58 20.00
(inclusive)
3 to 4 years
3,125,628.24 3,125,628.24 100.00
(inclusive)
4 to 5 years
229,028.24 229,028.24 100.00
(inclusive)
Over 5 years 46,162,814.16 46,162,814.16 100.00
Total 375,513,463.19 56,992,033.31
(3) Provision for bad debts
Stage 1 Stage 2 Stage 3
Expected
Expected credit
credit losses
Expected credit losses over the
Bad debt provision over the Total
losses for the entire life (Not
entire life
next 12 months credit-
(Credit-
impaired)
impaired)
Opening balance 850,661.71 1,353,672.38 61,928,862.67 64,133,196.76
Opening balance in the
-3,523,083.24 397,455.00 3,125,628.24
current period
--Transfer to stage 2 -3,523,083.24 3,523,083.24
--Transfer to stage 3 -3,125,628.24 3,125,628.24
--Reverse to stage 2
--Reverse to stage 1
Accrual in the current 5,537,145.38 2,858,711.44 3,516,441.26 11,912,298.08
Notes of Financial Report Page 68
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Stage 1 Stage 2 Stage 3
Expected
Expected credit
credit losses
Expected credit losses over the
Bad debt provision over the Total
losses for the entire life (Not
entire life
next 12 months credit-
(Credit-
impaired)
impaired)
period
Reversal in the current
period
Carry-forward in the
current period
Write-off in the current
-807,915.59 -807,915.59
period
Other changes
Ckosing balance 2,864,723.85 4,609,838.82 67,763,016.58 75,237,579.25
(4) Provision for bad debts accrued, recovered or reversed in the current period
Amount of change in the current period
Opening Recovery Closing
Category Charge off Other
balance Accrual or balance
or write off changes
reversal
Bad debt
provision
64,133,196.76 11,912,298.08 807,915.59 75,237,579.25
for other
receivables
Total 64,133,196.76 11,912,298.08 807,915.59 75,237,579.25
(5) Actual write-off of other receivables in the current period
Item Write-off amount
Write-off of other receivables 807,915.59
Of which significant write-offs of other receivables:
Whether the
Nature of Write-off
Name of the Write-off Reasons for write- amount arises
other procedures
company amount off from related
receivables performed
transactions
A suspended
company that is
unreachable for a Legal
Remained
Beijing Bengang long time without advice and
payment
materials sales 807,915.59 business minute of No
to be
center transactions and office
cleared
included in the conference
management of
account write-offs
Total 807,915.59
Notes of Financial Report Page 69
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(6) Classification of other receivables by nature of payment
Nature of payment Closing book balance Opening book balance
Compensation of "Life show
212,242,400.00
belt" Project
Amount current 176,055,536.99 181,771,075.61
Others 5,732,799.84 9,560,814.07
Total 394,030,736.83 191,331,889.68
(7) Other receivables of the top five closing balances collected by arrears
Percentage
of total Closing
Name of the Nature of the closing balance of
Closing balance Aging
company payment balance of bad debt
prepayments provision
(%)
Compensation
Benxi Xihu District Within
of "Life show 212,242,400.00 53.86 2,122,424.00
Government 1 year
belt" Project
Benxi Iron and
2 to 3
Steel (Group) Third
Amount years;
construction 12,504,978.59 3.17 12,504,978.59
current Over 5
Engineering Co.,
years
Ltd
Within
Benxi Iron and
Amount 1 year;
Steel (Group) Co., 7,413,860.80 1.88 4,561,714.36
current Over 5
Ltd.
years
Liaoning Hengtai
Amount Within
Heavy Machinery 3,545,583.40 0.90 35,455.83
current 1 year
Co., Ltd.
Liaoning Huawei
Amount Over 5
Coal Preparation 2,261,360.00 0.57 2,261,360.00
current years
Co., Ltd.
Total 237,968,182.79 60.38 21,485,932.78
(VII) Inventories
Notes of Financial Report Page 70
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
1. Classification of inventories
Closing balance Opening balance
Provision for Provision for
decline in value of decline in value of
Item inventories or inventories or
Book balance Book value Book balance Book value
impairment of impairment of
contract contract
performance costs performance costs
Raw material 4,596,538,313.45 56,931,870.40 4,539,606,443.05 4,215,260,584.25 24,954,852.46 4,190,305,731.79
Work-in-process 1,627,187,498.35 12,076,074.97 1,615,111,423.38 2,070,182,298.44 18,271,254.09 2,051,911,044.35
Goods in stock 1,558,823,023.16 5,167,994.78 1,553,655,028.38 2,236,715,664.20 15,203,965.16 2,221,511,699.04
Total 7,782,548,834.96 74,175,940.15 7,708,372,894.81 8,522,158,546.89 58,430,071.71 8,463,728,475.18
Notes of Financial Report Page 71
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
2. Provision for the decline in value of inventories and provision for impairment of contract performance costs
Increase in the current period Decrease in the current period
Item Opening balance Reversal or carry- Closing balance
Accrual Others Others
forward
Raw materials 24,954,852.46 31,977,017.94 56,931,870.40
Work-in-process 18,271,254.09 -6,195,179.12 16,239,572.86 12,076,074.97
Goods in stock 15,203,965.16 -10,035,970.38 15,203,965.16 5,167,994.78
Total 58,430,071.71 15,745,868.44 31,443,538.02 74,175,940.15
Notes of Financial Report Page 72
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(VIII) Other current assets
Item Closing balance Opening balance
VAT input tax 88,281,138.57 228,449,995.81
Prepaid taxes 17,220,232.46 166,991,140.45
Others 52,288,605.87
Total 157,789,976.90 395,441,136.26
Notes of Financial Report Page 73
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(IX) Long-term equity investments
1. Details of long-term equity investment
Increase/decrease in the current period
Opening Gains and losses Closing
Other
Opening balance for on investments Other Cash dividends Closing balance of
Investee Increase in Decrease in comprehensive Impairment
balance impairment recognized under changes and profits Others balance provision for
investment investment income provision
provision the equity in equity declared impairment
adjustments
method
1．Joint
ventures
Subtotal
2．Associates
Benxi Iron
and Steel
Baojin
(Shenyang)
47,996,314.61 - - -1,085,968.20 - - - - - 46,910,346.41 -
Automobile
New Material
Technology
Co., Ltd.
CIMC
Tongchuang
(Zhejiang) 3,034,462.57 - 3,034,462.57 - - - - - - - -
Steel Chain
Co., Ltd.
Subtotal 51,030,777.18 3,034,462.57 -1,085,968.20 46,910,346.41
Total 51,030,777.18 3,034,462.57 -1,085,968.20 46,910,346.41
Notes of Financial Report Page 74
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(X) Other equity instrument investments
1. Details of other equity instrument investment
Accumulated Accumulated
Reasons for
Gains included in Losses included gains included in losses included
designation as at
other in other other in other Income gain
fair value
Item Closing balance Opening balance comprehensive comprehensive comprehensive comprehensive confirmed in the
through other
income in the income in the income at the income at the current period
comprehensive
current period current period end of this end of the
income
period current period
Equity of
Suzhou Longben
3,930,341.27 3,998,216.04 67,874.77 41,361.27 - -
Metal Material
Co., Ltd.
Equity of
Northeast
970,532,698.56 1,016,420,266.27 45,887,567.71 67,203,150.44 -
Special Steel
Group Co., Ltd.
Equity of
Sinosteel
14,414,693.00 -
Shanghai Steel
Service Co., Ltd.
Total 974,463,039.83 1,020,418,482.31 45,955,442.48 81,617,843.44
Notes of Financial Report Page 75
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(XI) Fixed assets
1. Fixed assets and liquidation of fixed assets
Item Closing balance Opening balance
Fixed assets 25,028,192,964.67 24,836,556,422.90
Liquidation of fixed assets
Total 25,028,192,964.67 24,836,556,422.90
Notes of Financial Report Page 76
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
2. Details of fixed assets
Transpotation
Item Houses and buildings Machinery and equipment Office equipment Total
equipment
1．Original book value:
（1）Opening balance 13,266,511,262.90 50,537,244,878.62 410,563,105.73 164,083,906.71 64,378,403,153.96
（2）Increase in the current
2,242,576.95 1,980,138,535.66 2,719,825.19 45,427,950.83 2,030,528,888.63
period
—Purchase 13,307,071.26 468,938.05 13,776,009.31
—Transferred from costruction
2,242,576.95 1,966,831,464.40 2,116,587.14 45,427,950.83 2,016,618,579.32
in progress
—Increase from business
combinations
—Transferred from rent after
sales
—Others 134,300.00 134,300.00
（3）Dectease in the current
237,332,092.50 1,004,470,654.25 14,245,607.37 10,830,236.33 1,266,878,590.45
period
—Disposal or scrapping 36,817,120.71 337,023,205.63 4,114,364.98 2,172,187.99 380,126,879.31
—Transferred out of rent after
sales
—Others 200,514,971.79 667,447,448.62 10,131,242.39 8,658,048.34 886,751,711.14
（4）Closing balance 13,031,421,747.35 51,512,912,760.03 399,037,323.55 198,681,621.21 65,142,053,452.14
2．Accumulated depreciation
（1）Opening balance 6,561,764,169.95 32,469,694,729.23 325,097,328.13 91,812,407.79 39,448,368,635.10
（2）Increase in the current
202,210,097.57 1,391,526,294.80 12,453,684.31 22,219,549.95 1,628,409,626.63
period
—Accrual 202,210,097.57 1,391,526,294.80 12,453,684.31 22,219,549.95 1,628,409,626.63
—Increase from business
combiations
—Others
（3）Decrease in the current
126,211,639.18 933,156,257.47 13,752,165.08 1,106,972.35 1,074,227,034.08
period
—Disposal or scrapping 24,756,831.54 270,629,993.67 3,999,411.88 1,106,972.35 300,493,209.44
Notes of Financial Report Page 77
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Transpotation
Item Houses and buildings Machinery and equipment Office equipment Total
equipment
—Transferred out of rent after
sales
—Others 101,454,807.64 662,526,263.80 9,752,753.20 773,733,824.64
（4）Closing balance 6,637,762,628.34 32,928,064,766.56 323,798,847.36 112,924,985.39 40,002,551,227.65
3．Provision for impairment
（1）Opening balance 84,098,414.32 9,379,681.64 93,478,095.96
（2）Increase in the current
19,593,534.81 19,593,534.81
period
—Accrual 19,593,534.81 19,593,534.81
—Others
（3）Decrease in the current
849,152.24 913,218.71 1,762,370.95
period
—Disposal or scrapping 849,152.24 913,218.71 1,762,370.95
—Others
（4）Closing balance 83,249,262.08 28,059,997.74 111,309,259.82
4．Book value
（1）Closing book value 6,310,409,856.93 18,556,787,995.73 75,238,476.19 85,756,635.82 25,028,192,964.67
（2）Opening book value 6,620,648,678.63 18,058,170,467.75 85,465,777.60 72,271,498.92 24,836,556,422.90
Notes of Financial Report Page 78
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
3. Temporarily idle fixed assets
Original book Accumulated Provision for
Item Book value Notes
value depreciation impairment
Houses and 112,751,517.87 68,153,743.49 41,943,853.74 2,653,920.64
buildings
Machinery 3,034,473.01 2,366,013.66 75,666.43 592,792.92
and
equipment
Total 115,785,990.88 70,519,757.15 42,019,520.17 3,246,713.56
4. Fixed assets leased out through operating leases
Item Closing book value
Houses and buildings 963,913.41
5. Fixed assets without proper title certificate
Reasons for non-completion of title
Item Book value
certificates
Houses and buildings 2,461,140,033.39 In process
(XII) Construction in progress
1. Construction in progress and construction materials
Closing balance Opening balance
Provision
Provision
Item Book for Book
Book value Book balance for
balance impairmen value
impairment
t
Constru 4,307,646,9 4,307,646,942.3 3,158,195,899 3,158,19
ction 42.37 7 .65 5,899.65
Constru
ction
757,204.94 757,204.94 - -
material
s
4,308,404,1 4,308,404,147.3 3,158,195,899 3,158,19
Total - -
47.31 1 .65 5,899.65
2. Details of construction in progress
Closing balance Opening balance
Provisio
Provision
Item Book n for Book
Book balance for Book balance
value impairm value
impairment
ent
Special Steel 1,195,585,74 1,195, 1,437,078,75 1,437,078
- -
Electric Furnace 7.24 585,7 1.92 ,751.92
Notes of Financial Report Page 79
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Closing balance Opening balance
Provisio
Provision
Item Book n for Book
Book balance for Book balance
value impairm value
impairment
ent
Upgrading and 47.24
Rennovation
Project
First Cold Rolling 578,3
578,301,217. 90,087,329.6 90,087,32
Transformation - 01,21 -
76 1 9.61
Project 7.76
Environmental
Protection 452,2
452,296,692. 165,792,014. 165,792,0
Renovation of - 96,69 -
77 40 14.40
Sheet Raw 2.77
Material Plant
Special Steel
367,8
Rolling Mill 367,831,655. 470,182,411. 470,182,4
- 31,65 -
Renovation 88 88 11.88
5.88
Project
Environmental
Protection
Renovation in 256,4
256,434,251.
No. 2 Coal - 34,25 19,266.06 - 19,266.06
91
Storage Field of 1.91
Plates Raw
Material Plant
Integration
Construction of
Informatization 112,7
112,748,748.
System for - 48,74 - - -
06
Ansteel and 8.06
Bengang
Recombination
Blocking of ABC
and DEF
99,12
Stockyard in 99,129,674.7 150,000.0
- 9,674. 150,000.00 -
Plates Iron 1 0
71
Making General
Plant
Desulphurization
Waste Liquor
78,56
Acid Making 78,562,923.8
- 2,923. 30,000.00 - 30,000.00
Project in Plates 4
84
Iron Making
Plant
Plate No.1 Dry
Quenching
76,99
System Boosting 76,994,180.1 20,249,501.2 20,249,50
- 4,180. -
Modification and 4 1 1.21
14
Unit No.34 New
Construction
Steelmaking
1#2#3#7#Conver 76,79
76,798,979.9 42,834,455.3 42,834,45
ter New Three - 8,979. -
1 1 5.31
Times Dust 91
Removal System
Centralized
61,96
Contol Project 61,969,240.0
- 9,240. - - -
before 3
03
Ironmaking of
Notes of Financial Report Page 80
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Closing balance Opening balance
Provisio
Provision
Item Book n for Book
Book balance for Book balance
value impairm value
impairment
ent
Plates Iron
Making General
Plant
58,04
1780 Production 58,044,160.5
- 4,160. - - -
Line Upgrading 4
54
Flue Gas
Desulfurization
and
Denitrification
54,55
Project of 4B and 54,553,821.0
- 3,821. - - -
5 Furnance 1
01
Group in
Bengang Plates
and Iron Making
General Plant
Plates Energy 50,27
50,276,243.3
Centralized - 6,243. - - -
6
Control Project 36
Supporting
Projects for
Outward
Transportation
of Nanfen
37,85
Pipeline 37,857,546.5
- 7,546. - - -
Transported 9
59
Mineral
Concentrate in
Bengang Plates
and Iron Making
General Plant
Steelmaking
4#5#6#Converte 36,88
36,885,526.7
r New Three - 5,526. 40,000.00 - 40,000.00
5
Times Dust 75
Removal System
Improvement of
Quality and
Efficiency of
2300 Line in Hot
Continuous
Rolling Plant of 32,32
32,327,295.1 646,287.4
Benxi Iron and - 7,295. 646,287.44 -
2 4
Steel Co., Ltd. 12
( First Phase ) -
Layer Cooling
and Upgrading
of Secondary
System
Centralized
Contol Center
before 31,57
31,573,183.1
Ironmaking of - 3,183. - - -
6
Plates Iron 16
Making General
Plant
Notes of Financial Report Page 81
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Closing balance Opening balance
Provisio
Provision
Item Book n for Book
Book balance for Book balance
value impairm value
impairment
ent
Benxi Iron and
Steel Plate Co.,
Ltd. Ironmaking
Plant No.5 Blast
Furnace Capacity
Replacement
31,03
Project ( Plate 31,033,533.0
- 3,533. - - -
Ironmaking Plant 6
06
No.5 Blast
Furnace Energy
Saving and
Environmental
Protection
Reconstruction )
Blocking Project
for Second and
Third Burning 26,58
26,589,400.0
Mixing - 9,400. - - -
0
Warehouse 00
Recycling
Operation Area
New
Construction of
40, 000 m3/h 25,84
25,842,342.6 6,763,230
Nitrogen - 2,342. 6,763,230.39 -
1 .39
Compressors in 61
Energy General
Plant
Renovation of
No. 5 RH 25,77
25,772,677.7
Refining in Plates - 2,677. - - -
7
Steel Making 77
General Plant
Outage for 2300
Line Heating 22,38
22,388,923.7
Furance in Plates - 8,923. - - -
2
Hot Continuous 72
Rolling Plant
Capitalized
22,00
Outage for 22,004,500.0 12,000,000.0 12,000,00
- 4,500. -
Roads in Plates 0 0 0.00
00
Plant
566 Square
Meters Sintering
92,259,450.2 92,259,45
Waste Heat - - - -
4 0.24
Utilization
Project
Waste Heat
Power
Generation
Project of 360
82,730,000.0 82,730,00
Square Meters - - - -
0 0.00
Sintering
Machine in
Bengang Power
Plant
Notes of Financial Report Page 82
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Closing balance Opening balance
Provisio
Provision
Item Book n for Book
Book balance for Book balance
value impairm value
impairment
ent
Supply Station of
Caixi Special
51,959,719.5 51,959,71
Steel in Plates - - - -
7 9.57
Waste Steel
Plant
Overall
Upgrading of
Bengang 39,756,485.1 39,756,48
- - - -
Manufecturing 2 5.12
and
Management
Renovation
Project for
Energy
Conservation 24,470,633.7 24,470,63
- - - -
and Evironment 0 3.70
Protection of 4#,
5# and 6#
Converter
Pyrogenation
Processs
Purification No.
1 Desulfurization 23,43
23,436,618.1 23,070,618.1 23,070,61
System - 6,618. -
0 0 8.10
Renovation in 10
Plates Iron
Making General
Plant
Informatization
Construction in
18,023,984.1 18,023,98
the Iron Area of - - - -
5 4.15
Bengang Plates
Cold Rolling
Quality 29,80
29,808,246.5 27,093,496.0 27,093,49
Improvement - 8,246. -
1 8 6.08
and Renovation 51
Project
442,5
442,599,611. 552,958,264. 552,958,2
Other projects - 99,61 -
82 47 64.47
1.82
4,307,
4,307,646,94 3,158,195,89 3,158,195
Total 646,9 -
2.37 9.65 ,899.65
42.37
Notes of Financial Report Page 83
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
3. Changes in significant construction in progress projects in the current period
Including:
Amount Percentage
Other Amount of Capitalization
Amount transferred of Accumulated
decreases interest rate of
Opening increased in to fixed Closing cumulative amount of Source
Name of project Budget in the Progress capitalized interest in
balance the current assets in the balance investment capitalized of fund
current in the the current
period current in projects interest
period current period(%)
period to budget
period
Upgrading and
Renovation Project Fund
1,732,481,000.00 1,437,078,751.92 72,462,574.36 313,955,579.04 - 1,195,585,747.24 87.13 87.13 75,371,612.93 14,953,108.09 4.35
for Special Steel raising
Electric Furnance
Renovation Project
Loans fro
for Evironment
1,286,370,000.00 165,792,014.40 286,504,678.37 - - 452,296,692.77 35.16 35.16 71,404,216.75 14,679,596.72 4.35 financial
Protection in Raw
institution
Material Yard
Loans fro
No.1 Cold Roll
843,640,000.00 90,087,329.61 488,213,888.15 - - 578,301,217.76 75.33 75.33 59,719,040.93 12,683,066.41 4.35 financial
Renovation Project
institution
Special Steel Rolling
Loans fro
Mill Renovation
734,730,000.00 470,182,411.88 51,604,170.91 153,954,926.91 - 367,831,655.88 84.92 84.92 54,315,536.22 8,918,454.24 3.12 financial
Project
institution
Environmental
Protection
Renovation in No. 2
310,000,000.00 19,266.06 256,414,985.85 - - 256,434,251.91 82.72 82.72 - - - Others
Coal Storage Field
of Plates Raw
Material Plant
Blocking of ABC
and DEF Stockyard
in Plates Iron 125,000,000.00 150,000.00 98,979,674.71 - - 99,129,674.71 79.30 79.30 - - - Others
Making General
Plant
Steelmaking
1#2#3#7#Converter Loans fro
New Three Times 111,310,000.00 42,834,455.31 45,535,317.22 11,570,792.62 - 76,798,979.91 79.91 79.91 15,545,892.66 3,170,804.73 4.35 financial
Dust Removal institution
System
Desulphurization
Waste Liquor Acid 99,760,000.00 30,000.00 78,532,923.84 - - 78,562,923.84 78.75 78.75 - - - Others
Making Project in
Notes of Financial Report Page 84
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Including:
Amount Percentage
Other Amount of Capitalization
Amount transferred of Accumulated
decreases interest rate of
Opening increased in to fixed Closing cumulative amount of Source
Name of project Budget in the Progress capitalized interest in
balance the current assets in the balance investment capitalized of fund
current in the the current
period current in projects interest
period current period(%)
period to budget
period
Plates Iron Making
Plant
Plate No.1 Dry
Quenching System
Boosting
93,270,000.00 20,249,501.21 56,744,678.93 - - 76,994,180.14 82.55 82.55 - - - Others
Modification and
Unit No.34 New
Construction
Integration
Construction of
Loans fro
Informatization
232,100,000.00 - 112,748,748.06 - - 112,748,748.06 80.77 80.77 22,854,471.47 4,533,748.06 4.35 financial
System for Ansteel
institution
and Bengang
Recombination
Total 2,226,423,730.39 1,547,741,640.40 479,481,298.57 - 3,294,684,072.22 299,210,770.96 58,938,778.25
Notes of Financial Report Page 85
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(XIII) Right-of-use assets
1. Right-of-use asset condition
Houses and
Item Land Total
buildings
1. Original book value
(1) Opening balance 1,132,274,415.17 368,465,367.56 1,500,739,782.73
(2) Increase in the current
period
—Increased lease
—Enterprise consolidated
increase
(3) Decrease in the current
period
—Transfer out to fixed
assets
—Disposal
(4) Losing balance 1,132,274,415.17 368,465,367.56 1,500,739,782.73
2. Accumulated depreciation
(1) Opening balance 79,808,472.44 40,940,596.40 120,749,068.84
(2) Increase in the current
39,904,236.24 20,470,298.28 60,374,534.52
period
—Accrual 39,904,236.24 20,470,298.28 60,374,534.52
(3) Decrease in the current
period
—Transfer out to fixed
assetss
—Disposal
（4）Closing balance 119,712,708.68 61,410,894.68 181,123,603.36
3．Provision for impairment
（1）Opening balance
（2）Increase in the current
period
—Accrual
（3）Decrease in the current
period
—Transfer out to fixed
assets
—Disposal
（4）Closing balance
4．Book value
（1）Closing book value 1,012,561,706.49 307,054,472.88 1,319,616,179.37
（2）Opening book value 1,052,465,942.73 327,524,771.16 1,379,990,713.89
(XIV) Intangible assets
1. Details of intangible assets
Software and
Item Land use right Total
others
1．Original book value
（1）Opening balance 336,885,314.76 267,948.72 337,153,263.48
（2）Increase in the current period
Notes of Financial Report Page 86
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Software and
Item Land use right Total
others
—Purchase
—Internal research and
development
—Increase from business
combinations
（3）Decrease in the current period
—Disposal
—Parts that are invalid and
derecognised
（4）Closing balance 336,885,314.76 267,948.72 337,153,263.48
2．Accumulated amoritization
（1）Opening balance 74,208,486.41 159,839.66 74,368,326.07
（2）Increase in the current period 6,737,706.36 26,794.92 6,764,501.28
—Accrual 6,737,706.36 26,794.92 6,764,501.28
（3）Decrease in the current period
—Disposal
—Parts that are invalid and
derecognised
（4）Closing balance 80,946,192.77 186,634.58 81,132,827.35
3．Provision for impairment
（1）Opening balance
（2）Increase in the current period
—Accrual
（3）Decrease in the current period
—Disposal
—Parts that are invalid and
derecognised
（4）Closing balance
4．Book value
（1）Closing book value 255,939,121.99 81,314.14 256,020,436.13
（2）Opening book value 262,676,828.35 108,109.06 262,784,937.41
2. Land use right without proper title certificate
Reasons for non-
Item Book value completion of title
certificates
Land use right 37,930,667.39 正在办理
Total 37,930,667.39
(XV) Deferred income tax assets/deferred income tax liabilities
1. Deferred income tax assets not offset
Closing balance Opening balance
Deductible Deferred Deductible Deferred
Item
temporary income tax temporary income tax
differences assets differences assets
Impairmet of assets 403,698,019.09 100,549,055.02 396,834,109.83 99,208,527.46
Internal unrealized
80,751,325.52 20,187,831.38
profit
Deductible losses
Notes of Financial Report Page 87
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Closing balance Opening balance
Deductible Deferred Deductible Deferred
Item
temporary income tax temporary income tax
differences assets differences assets
Changes in fair value
of other financial
assets included in 81,617,843.44 20,404,460.86 21,315,582.73 5,328,895.68
other comprehensive
income
Lease liabilities 1,384,348,462.17 346,087,115.54 1,424,667,169.16 356,166,792.29
Others 1,974,067.76 493,516.94
Total 1,869,664,324.70 467,040,631.42 1,925,542,255.00 481,385,563.75
2. Deferred income tax liabilities not offset
Closing balance Opening balance
Taxable Deferred Taxable Deferred
Item
temporary income tax temporary income tax
differences liabilities differences liabilities
Changes in fair value
of other financial
assets included in 41,361.27 10,340.32 109,236.04 27,309.01
other comprehensive
income
Right-of-use assets 1,319,616,179.47 329,904,044.87 1,379,990,713.89 344,997,678.47
Total 1,319,657,540.74 329,914,385.19 1,380,099,949.93 345,024,987.48
3. Unrecognized deferred tax assets
Item Closing balance Opening balance
Deductible temporary differences 305,223,483.99 305,224,166.01
Deductible losses 4,213,758,736.79 1,349,817,349.12
Total 4,518,982,220.78 1,655,041,515.13
4. The deductible loss of unrecognized deferred tax assets due in the following years
Amount at end of Amount ar beginning
Year
period of period
Year 2023 - 6,836,473.11
Year 2024 12,164,389.35 12,164,389.35
Year 2025 8,257,832.98 8,257,832.98
Year 2026 6,799,314.77 6,799,314.77
Year 2027 1,919,832,999.81 1,315,759,338.91
Year 2028 2,266,704,199.88 -
Total 4,213,758,736.79 1,349,817,349.12
(XVI) Other non-current assets
Notes of Financial Report Page 88
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Closing balance Opening balance
Item Book Provision for Book Provision for Book
Book balance
balance impairment value impairment value
Prepaid
long- 137,933,5 137,933,5 110,065,560.6 110,065,5
term 99.61 99.61 8 60.68
assets
137,933,5 137,933,5 110,065,560.6 110,065,5
Total
99.61 99.61 8 60.68
(XVII) Assets with restricted ownership and use rights
The end of the period
Item
Book balance Reason for retrictions
Cash and cash
1,009,879,189.82 Margin on bills, Margin on L/Cs
equivalents
Notes receivable 218,427,117.76 Pledge
Total 1,228,306,307.58
(XVIII) Short-term borrowings
1. Classification of short-term borrowings
Item Closing balance Opening balance
Secured borrowings
Credit borrowings
Guaranteed borrowings
Credit borrowings 300,000,000.00
Discounted undue notes 28,000,000.00 49,200,000.00
Total 328,000,000.00 49,200,000.00
(XIX) Note payable
Item Closing balance Opening balance
Bank acceptance bill 8,601,590,577.15 2,242,219,356.03
Commercial acceptance bill 463,403,421.74 1,407,117,263.33
Letter of credit 1,300,000,000.00 740,000,000.00
Total 10,364,993,998.89 4,389,336,619.36
The total amount of notes payable due and unpaid at the end of the current period was RMB 0.
(XX) Accounts payable
1. Presentation of accounts payable
Item Closing balance Opening balance
Within 1 year (Inclusive) 2,782,628,881.51 3,603,291,359.95
1 to 2 years (Inclusive) 9,101,689.71 43,865,650.21
2 to 3 years (Inclusive) 7,414,901.65 49,263,453.69
Notes of Financial Report Page 89
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Item Closing balance Opening balance
Over 3 years 10,289,787.90 -
Total 2,809,435,260.77 3,696,420,463.85
2. Significant accounts payable aged over 1 year
Reason of no repayment or
Item Closing balance
carrying over
Settlement conditions not
Primetals Technologies (China) Co., Ltd. 3,963,017.01
yet met
Settlement conditions not
Henan Weihua Heavy Machinery Co., Ltd. 6,829,683.84
yet met
Total 10,792,700.85
(XXI) Contract liabilities
1. Details of contract liabilities
Item Closing balance Opening balance
Deposits of product and service received 3,302,218,364.90 3,794,115,592.29
Others 890,227.48 -
Total 3,303,108,592.38 3,794,115,592.29
As of the end of this report, there were no significant contractual liabilities older
than one year.
2. Amount and reasons for significant changes in the book value during the reporting
period.
Item Amount of change Reasons for change
Mainly due to lower steel prices in
Payment for goods -491,897,227.39
current year
Total -491,897,227.39
(XXII) Employee benefits payable
1. Presentation of employee benefits
Opening Increase in the Decrease in the Closing
Item
balance current period current period balance
Short-term benefits 10,046,363.27 2,158,007,835.86 2,166,878,228.30 1,175,970.83
Post-employment
benefits - defined 277,797,572.66 277,797,572.66
contribution plan
Termination benefits 64,829,767.83 64,829,767.83
Other benefits due
within a year
Notes of Financial Report Page 90
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Opening Increase in the Decrease in the Closing
Item
balance current period current period balance
Other
Total 10,046,363.27 2,500,635,176.35 2,509,505,568.79 1,175,970.83
2. Presentation of short-term benefits
Opening Increase in the Decrease in the Closing
Item
balance current period current period balance
（1）Salaries, bonuses,
allowances and 1,534,680,493.02 1,534,680,493.02
subsidies
（2）Employee welfare 197,958,867.96 197,958,867.96
（3）Social insurance 178,330,772.45 178,330,772.45
Including: Medical
insurance and 134,817,423.74 134,817,423.74
maternity insurance
Work injury
41,299,564.71 41,299,564.71
insurance
Others 2,213,784.00 2,213,784.00
（4）Housing
6,622,309.00 177,278,089.00 183,900,398.00
provident fund
（5） Union funds and
3,424,054.27 36,502,456.55 38,750,539.99 1,175,970.83
staff education fee
（6）Paid short-term
absence
（7）Short-term profit
sharing plan
（8）Other short-term
benefits (e.g.
healthcare, labor
33,257,156.88 33,257,156.88
protection and
temporary
employment, etc. )
Total 10,046,363.27 2,158,007,835.86 2,166,878,228.30 1,175,970.83
3. Presentation of defined contribution plan
Opening Increase in the Decrease in the Closing
Item
balance current period current period balance
Basic pension fund 255,263,426.42 255,263,426.42
Unemployment insurance 8,011,770.20 8,011,770.20
Enterprise annuity 14,522,376.04 14,522,376.04
Total 277,797,572.66 277,797,572.66
(XXIII) Taxes payable
Item of tax and due Closing balance Opening balance
Value-added tax (VAT) 7,969,729.86 5,168,511.13
Corporate income tax 16,637,900.58 11,469,020.92
Notes of Financial Report Page 91
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Item of tax and due Closing balance Opening balance
City maintenance and construction tax 526,991.99 175,567.61
Property tax 3,997,351.10 3,785,986.96
Land use tax 1,088,809.99 1,051,651.99
Personal income tax 2,427,153.14 2,546,699.73
Education surcharge (including local
376,422.86 125,405.40
education surcharge)
Others 22,378,599.59 20,070,077.04
Total 55,402,959.11 44,392,920.78
(XXIV) Other payables
Item Closing balance Opening balance
Interest payable
Dividends payable
Other payables 1,659,284,531.06 1,247,722,165.47
Tota; 1,659,284,531.06 1,247,722,165.47
1. Other payables
(1) Presentation of other payables by nature of payment
Item Closing balance Opening balance
Deposit 679,292.00 2,303,050.00
Margin 328,420,047.69 290,353,044.56
Current money 1,317,921,724.74 941,440,196.32
Others 12,263,466.63 13,625,874.59
Total 1,659,284,531.06 1,247,722,165.47
(2) Significant other payables aged over 1 year
Reasons for non-
Item Closing balance reimbursement or carry-
over
The First Taxation Branch of Benxi Taxation
Bureau of the State Administration of 40,357,710.00 non carry over
Taxation
(XXV) Non-current liabilities due within one year
Item Closing balance Opening balance
Long-term borrowings due within one
562,310,473.60 2,501,169,854.72
year
Bonds payable due within one year 81,650,008.44 44,762,324.73
Long-term account payable due within
one year
Lease liabilities due within one year 41,921,209.72 40,318,706.98
Total 685,881,691.76 2,586,250,886.43
Notes of Financial Report Page 92
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(XXVI) Other current liabilities
Item Closing balance Opening balance
Output tax to be transffered 392,122,093.59 493,235,027.03
Total 392,122,093.59 493,235,027.03
(XXVII) Long-term borrowings
Item Closing balance Opening balance
Secured borrowings
Pledged borrowings
Credit borrowings 360,780,612.70
Credit borrowings 1,723,726,700.80 1,366,157,689.60
Total 1,723,726,700.80 1,726,938,302.30
Notes: Interest rates on long-term borrowings ranged from 2.10% to 3.283%
(XXVIII) Bonds payable
1. Details of bonds payable
Item Closing balance Opening balance
Convertible corporate bonds 5,451,381,676.38 5,276,502,232.78
Total 5,451,381,676.38 5,276,502,232.78
Notes of Financial Report Page 93
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
2. Increase or decrease in bonds payable (Excluding other financial instruments such as preference shares and perpetual debt classified as financial
liabilities
Issued in Amortization Current period Transfer of
Term to Opening Interest accrues at Closing
Name Nominal value Issue date Amount issued the current of premium reimbursemen shares in the Default or not
maturity balance nominal value balance
period and discount t current year
Bengang
Convertible 6,800,000,000. June 29th, 6,800,000,000. 5,276,502,232. 5,533,031,684.8
6 years - 123,882,899.20 174,907,443.60 42,232,890.76 28,000.00 No
Bond (Bond 00 2020 00 78 2
code:127018
Less: Bonds
payable due
81,650,008.44 81,650,023.45 No
within one
year
6,800,000,000. 6,800,000,000. 5,276,502,232. 5,451,381,676.3
Total 42,232,890.76 174,907,443.60 42,232,890.76 28,000.00
00 00 78 8
3. Illustration for the Company’s convertible bond
Approved by Shenzhen Stock Exchange "Shen Zheng Shang [2020] No. 656", the Company’s RMB 6.80 billion convertible corporate bonds were listed
on the Shenzhen Stock Exchange on August 4th, 2020, and the abbreviation is "Bengang Convertible Bond". 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 3rd, 2020) to the maturity date of the convertible corporate bonds, that is, from January 4th, 2021 to June 28th, 2026. The initial conversion
price of the convertible bonds is RMB 5.03 per share. During the period from January 1st, 2022 to December 31st, 2022, the Company's A-share
convertible bonds of RMB 92,500.00 were converted into the Company's A-share ordinary shares, and the number of converted shares was 20,838.00
shares. Of which:
In the first quarter of 2023, Bengang's convertible bonds decreased by RMB 4,000 (40 bonds) due to share conversion, the number of shares converted
was 1,012.00 shares, and the conversion price was RMB 3.95 per share;
Notes of Financial Report Page 94
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
In the second quarter of 2023, Bengang's convertible bonds decreased by RMB 6,000 (60 bonds) due to share conversion, the number of shares
converted was 1,518.00 shares, and the conversion price was RMB 3.95 per share;
In the third quarter of 2023, Bengang's convertible bonds decreased by RMB 12,000.00 (120 bonds) due to share conversion, the number of shares
converted was 3,037.00 shares, and the conversion price was RMB 3.95 per share;
In the fourth quarter of 2023, Bengang's convertible bonds decreased by RMB 6,000.00 (60 bonds) due to share conversion, the number of shares
converted was 1,518.00 shares, and the conversion price was RMB 3.95 per share; As at December 31st, 2021, the Company's face value balance of
convertible bonds was RMB 5,631,024,100.00 (56,310,241.00 bonds).
Notes of Financial Report Page 95
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(XXIX) Lease liabilities
Item Closing balance Opening balance
Lease payments 2,098,254,018.65 2,191,946,735.27
Less: Unrecognized financing expenses 713,905,556.48 767,279,566.11
Reclassification to non-current liabilities due
41,921,209.72 40,318,706.98
within one year
Total 1,342,427,252.45 1,384,348,462.18
(XXX) Deferred income
Decrease in
Opening Increase in the Causes of
Item the current Closing balance
balance current period formation
period
Government
42,377,015.51 144,266,000.00 50,558,060.33 136,084,955.18
grants
Total 42,377,015.51 144,266,000.00 50,558,060.33 136,084,955.18
Items involving government grants:
Notes of Financial Report Page 96
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Amount of
Amount Amount
current
Amount of new charged to charged to Asset-related
Opening period's Other
Liabilities items grants in the non-operating other gains in Closing balance / income-
balance elimination of changes
current period income in the the current related
costs and
current period period
expenses
Research and Development
of High-strength Steel for
1,160,000.00 580,000.00 580,000.00 Asset
the Third Generation of
Automobiles
Desulfurization and
Denitrification Project of
Coal-fired Boiler in High- 2,400,000.00 600,000.00 1,800,000.00 Asset
pressure Workshop of
Bengang Power Plant
Advanced Treatment
Project of Carbon Fiber
Wastewater in Dongfeng
5,700,000.00 1,900,000.00 3,800,000.00 Asset
Plant Area of Plate Coking
Plant
Second Sintering Finishing
Dust Removal Ultra-low
1,230,000.00 410,000.00 820,000.00 Asset
Emission Reconstruction
Project
Converter Gas Recovery
Efficiency Improvement
1,500,000.00 10,600,000.00 2,420,000.00 9,680,000.00 Asset
Project for Plate Material
Area
Central environmental
105,440,000.00 21,088,000.00 84,352,000.00 Asset
protection award fund
2021 Intellectual
Manufacturing Strong 4,800,000.00 960,000.00 3,840,000.00 Asset
Province Special Fund
Notes of Financial Report Page 97
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Amount of
Amount Amount
current
Amount of new charged to charged to Asset-related
Opening period's Other
Liabilities items grants in the non-operating other gains in Closing balance / income-
balance elimination of changes
current period income in the the current related
costs and
current period period
expenses
2020 Ecological Civilization
Construction Special
Project (Special Steel 20,000,000.00 20,000,000.00 Asset
Electric Furnace Upgrading
Project)
2021 Manufacturing Strong
Province Special Fund 8,100,000.00 8,100,000.00 Asset
Project
Government grant for
“Liaoning Revitalization 350,000.00 113,500.00 236,500.00 Asset
Talent Plan”
2022 Provincial Science and
Technology Department
Liaoning Provincial Natural 30,000.00 1,600.00 28,400.00 Asset
Science Foundation
Program Project Section
Design of Rare Earth Steel
Metallurgical Slag System
340,000.00 22,651.00 317,349.00 Asset
and Research on Its
Physicochemical Properties
2021 Municipal Skilled
77,300.48 81.03 77,219.45 Income
Master Workstation Fee
Study on the Mechanism
and Control of the Effect of
Rare Earth Oxysulfides on 334,448.50 212,228.30 122,220.20 Income
the Plasticizability of
Automotive Steel
2021 Benxi Experts and
Talents Interaction with 5,000.00 5,000.00 Income
Enterprises Project
Notes of Financial Report Page 98
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Amount of
Amount Amount
current
Amount of new charged to charged to Asset-related
Opening period's Other
Liabilities items grants in the non-operating other gains in Closing balance / income-
balance elimination of changes
current period income in the the current related
costs and
current period period
expenses
2019 Municipal Master Skill
69,500.19 69,500.19 Income
Workstation Fee
2018 Municipal Master Skill
58,766.34 58,766.34 Income
Workstation Fee
Liaoning Province
"Hundred,
Thousand, Thousand, 220,000.00 220,000.00 Income
Thousand Talents Project"
funding project in 2018
2023 Instant Allowance
Without Application Special 500,000.00 500,000.00 - Income
Fund
2022 Digital Liaoning and
Intellectual Manufacturing
20,000,000.00 20,000,000.00 - Income
Strong Province Special
Fund
2021 Intellectual
Manufacturing Strong 1,700,000.00 1,700,000.00 - Income
Province Direction
Provincial Science and
Technology Department
334,000.00 334,000.00 Income
National Natural Science
Foundation Committee
2019 Provincial Skilled
200,000.00 200,000.00 Income
Master Workstation Fee
2020 Provincial Skilled
100,000.00 100,000.00 Income
Master Workstation Fee
Fundamental Research on
New Technology of 168,000.00 168,000.00 Income
Composite Iron Coke Low
Notes of Financial Report Page 99
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Amount of
Amount Amount
current
Amount of new charged to charged to Asset-related
Opening period's Other
Liabilities items grants in the non-operating other gains in Closing balance / income-
balance elimination of changes
current period income in the the current related
costs and
current period period
expenses
Carbon Ironmaking Furnace
Charge
The Second Batch of 2021
Liaoning Funds on Central
Government Guiding the 300,000.00 300,000.00 Income
Development of Local
Science and Technology
Liaoning Province
“BaiQianWan Talents
50,000.00 50,000.00 - Income
Program” Funded Project in
2020
2022 Digital Liaoning
Intellectual Manufacturing 300,000.00 300,000.00 Income
Strong Province
Municipal Enterprise
Operation Class Patent
200,000.00 200,000.00 Income
Navigation Project Funding
Grant
Genetic Engineering and
Artificial Intelligence Design
of Aviation Critical 376,000.00 376,000.00 Income
Materials (Research
Institute)
Total 42,377,015.51 144,266,000.00 - 50,558,060.33 - - 136,084,955.18
Notes of Financial Report Page 100
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(XXXI) Share capital
Increase/decrease (+, -)
Issue Transfer
Item Opening balance of Bonus from Closing balance
Others Subtotal
new issue provident
shares fund
Total
4,108,212,217.00 7,085.00 7,085.00 4,108,219,302.00
shares
Other notes: The decrease in the current period is due to the conversion of the A-share
convertible bonds issued by the company into 7,085.00 bonds A-share ordinary shares in
the current period. As of December 31th , 2023, the company 's remaining convertible
bond balance is RMB 5,631,024,100.00 ( 56,310,241.00 bonds ). See note 5, bonds. For
details, see Notes V. (XXVIII) Bonds payable.
Notes of Financial Report Page 101
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(XXXII) Other equity instruments
1. Information of other financial instruments such as preferred stocks and perpetual bonds issued at the end of the period
Increase in the current
Opening balance Decrease in the current period End of the period
Issued financial tools period
Number Book value Number Book value Number Book value Number Book value
Convertible bonds 56,310,521.00 947,863,834.02 - - 280.00 5,699.86 56,310,241.00 947,858,134.16
Total 56,310,521.00 947,863,834.02 - - 280.00 5,699.86 56,310,241.00 947,858,134.16
Other notes: The decrease in the current period is due to the conversion of the A-share convertible bonds issued by the company into RMB28,000.00 (280
bonds) A-share ordinary shares in the current period. As of December 31th , 2023, the company 's remaining convertible bond face value balance is RMB
5,631,024,100.00 ( 56,310,241.00 bonds ). See note 5, bonds. For details, see Notes V. (XXVIII) Bonds payable.
Notes of Financial Report Page 102
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(XXXIII) Capital reserve
Decrease in
Increase in the
Item Opening balance the current Closing balance
current period
period
Capital premium
(share capital 13,156,287,691.39 20,710.71 13,156,308,402.10
premium)
Other capital
115,917,468.82 115,917,468.82
reserve
Total 13,272,205,160.21 20,710.71 13,272,225,870.92
Other notes, including notes on changes in the current period and reasons for changes:
The increase in the current period is due to the conversion of A-share convertible bonds issued by
the Company into A-share ordinary shares. For details, please refer to note “VI. 27. Bonds payable”.
Notes of Financial Report Page 103
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(XXXIV) Other comprehensive income
Amount incurred in the current period
Less: Transfer
Less: Transfer to
to profit or loss
retained earnings
Amount in the current
in the current Attributable Attributable to
Opening incurred before period from Closing
Item period from prior Less: Income to the parent minority
balance income tax in prior periods balance
periods charged tax expense company shareholders
the current charged to
to other after tax after tax
period other
comprehensive
comprehensive
income
income
1．Other comprehensive
- -
income that cannot be -15,904,760.02 -45,955,442.48 -11,488,860.62
34,466,581.86 50,371,341.88
reclassified to profit or loss
Including: Remeasurement
and setting benefit plan
changes
Changes in fair value of
- -
investments in other equity -15,904,760.02 -45,955,442.48 -11,488,860.62
34,466,581.86 50,371,341.88
instruments
2. Other comprehensive
income reclassified in profit
and loss
Including: Other
comprehensive income of
convertible profit and loss
under the equity method
Total other comprehensive - -
-15,904,760.02 -45,955,442.48 -11,488,860.62
income 34,466,581.86 50,371,341.88
Notes of Financial Report Page 104
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(XXXV) Special reserve
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Safety production
2,217,913.77 77,964,469.55 80,127,540.17 54,843.15
cost
Total 2,217,913.77 77,964,469.55 80,127,540.17 54,843.15
(XXXVI) Surplus reserve
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Legal surplus reserve 1,195,116,522.37 1,195,116,522.37
Free surplus reserve
Reserve funds
Enterprise
development funds
Others
Total 1,195,116,522.37 1,195,116,522.37
(XXXVII) Undistributed profits
Item Current period Prior period
Adjustments of the beginning distributed profits -720,559,670.73 2,977,306,297.64
Adjustments of the beginning undistributed
profits total amount (increase +, decrease -)
The beginning undistributed profits after
-720,559,670.73 2,977,306,297.64
adjusrment
Add: Net profit for the period attributable to
-1,742,574,163.92 -1,232,976,557.37
owners of the parent company
Other factors 25,416.40
Less: Withdrawal of statutory surplus reserve
Withdrawal of discretionary surplus reserve
Withdrawal of general risk privision
Cash dividends distributed in the current
2,464,914,827.40
period
Dividends on ordinary shares converting to
capital
Cash dividends distributed in the current
period
Undistributed profit at the end of the period -2,463,133,834.65 -720,559,670.73
(XXXVIII) Business income and business cost
Notes of Financial Report Page 105
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
1. Details of business income and business cost
Current period Prior period
Item
Income Cost Income Cost
Main
56,674,968,934.42 57,214,004,924.40 59,395,642,984.38 59,110,682,153.73
business
Other
1,140,000,417.23 1,112,281,082.13 3,220,978,643.22 3,148,652,700.99
business
Total 57,814,969,351.65 58,326,286,006.53 62,616,621,627.60 62,259,334,854.72
2. Details of business income
Income from main Cost from main Income from Cost from other
Category
business business other business business
Classification by
business regions
Including:
49,193,720,937.80 49,793,865,920.91 1,140,000,417.23 1,112,281,082.13
Domestic
Oversea 7,481,247,996.62 7,420,139,003.49
Total 56,674,968,934.42 57,214,004,924.40 1,140,000,417.23 1,112,281,082.13
Classification by
commodity
alienation time:
Confirmation at
56,674,968,934.42 57,214,004,924.40 1,135,127,056.62 1,109,906,049.33
some point
Confirmation in
4,873,360.61 2,375,032.80
some period
Total 56,674,968,934.42 57,214,004,924.40 1,140,000,417.23 1,112,281,082.13
(XXXIX) Taxes and surcharges
Amount incurred in the Amount incurred in the
Item
current period prior period
Environmental tax 38,630,331.48 37,955,614.65
City maintenance and construction tax 11,150,706.61 8,247,520.23
Education surcharge 8,100,823.33 6,202,547.48
Property tax 82,175,453.10 81,251,574.97
Land use tax 12,189,312.63 13,148,324.89
Vehicle and vessel use tax 219,332.32 182,560.36
Stamp duty 58,612,006.24 59,436,033.58
Others 483,657.54 16,694.40
Total 211,561,623.25 206,440,870.56
(XL) Selling expenses
Notes of Financial Report Page 106
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Amount incurred in the Amount incurred in the
Item
current period prior period
Import and export agency fee 41,843,829.87 62,722,202.78
Employee benefits 79,109,440.68 37,325,748.94
Package fee 6,434,329.15 9,716,348.12
Others 31,646,536.81 18,725,396.96
Total 159,034,136.51 128,489,696.80
(XLI) Administrative expenses
Amount incurred in the Amount incurred in the
Item
current period prior period
Employee benefits 335,026,348.30 319,515,626.55
Insurance expense 12,422,253.82 12,672,429.74
Depreciation 40,772,552.53 40,266,699.01
Repair esxpense 2,051,321.51 159,772,788.05
Intermediary expense 11,046,116.76 4,454,794.80
Office expense 1,191,120.82 1,491,585.53
Travel expense 2,450,942.89 2,599,480.20
Afforestation fee 9,035,946.93 8,074,706.58
Other 187,624,701.34 114,232,543.99
Total 601,859,503.43 663,080,654.45
(XLII) Research and development expenses
Amount incurred in the Amount incurred in the
Item
current period prior period
Depreciation, materials and benefits,
81,247,560.73 58,088,008.14
etc.
Total 81,247,560.73 58,088,008.14
(XLIII) Financial expenses
Amount incurred in the Amount incurred in the
Item
current period prior period
Interest expenses 415,219,929.72 599,359,597.96
Less: Interest income 54,957,360.07 80,619,490.18
Exchange net income
Add: Exchange income and loss -59,468,641.72 -3,956,001.44
Other expenditure 8,505,011.04 8,286,059.01
Total 309,298,938.97 523,070,165.35
(XLIV) Other income
Notes of Financial Report Page 107
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Amount
Amount incurred in
Item incurred in the
the prior period
current period
Research and Development of High-strength Steel for the 580,000.00 580,000.00
Third Generation of Automobiles
Desulfurization and Denitrification Project of Coal-fired 600,000.00 600,000.00
Boiler in High-pressure Workshop of Bengang Power Plant
Advanced Treatment Project of Carbon Fiber Wastewater 1,900,000.00 1,900,000.00
in Dongfeng Plant Area of Plate Coking Plant
Municipal Allocated Oil Tank Special Passivation Project for 50,000.00
Millions of Talents
Second Sintering Finishing Dust Removal Ultra-low 410,000.00 410,000.00
Emission Reconstruction Project
Recovery Efficiency Improvement Project for Plate 2,420,000.00
Material Area
Central Government Environmental Protection Award 21,088,000.00
Fund
2021 Intellectual Manufacturing Strong Province Special 960,000.00
Fund (Upgrading and renovation of information and
network)
2023 Instant Allowance Without Application Special Fund 500,000.00
(2022 National Green Design Products Hot-Rolled High
Strength Steel Plate and Steel Strip for Automobile)
2022 Digital Liaoning and Intellectual Manufacturing 20,000,000.00
Strong Province Special Fund
“Liaoning Rejuvenation Talent Plan” Government Grants 113,500.00
Study on the Mechanism and Control of the Effect of Rare 212,228.30
Earth Oxysulfides on the Plasticizability of Automotive
Steel
2022 Provincial Science and Technology Department 1,600.00
Liaoning Provincial Natural Science Foundation Program
Project Fund
Design of Rare Earth Steel Metallurgical Slag System and 22,651.00
Research on Its Physicochemical Properties
2023 Intellectual Manufacturing Strong Province Direction 1,700,000.00
(Bengang Technical Center Innovation Capacity
Improvement)
2021 Municipal Skilled Master Workstation Fee 81.03 2,702.49
Job Retention Training of Labor Employment Subsidies 2,358.49
Cold-rolled High-strength Steel Renovation Project 50,000,000.00
7 Sets of 130 Tons Combustion Boiler Flue Gas 4,800,000.00
Desulfurization Project in Power Plant
Power Plant Three Power Plant Cogeneration Reform 2,000,000.00
Project
2021 Benxi Experts and Talents Interaction with 5,000.00
Enterprises Project
2019 Municipal Skilled Master Workstation Fee 28,583.97
Liaoning Province Craftmen Subsidies 18.92
Study on the mechanism and control of the effect of rare- 122,965.00
earth oxysulfides on the plasticizability of automotive steel
Dalian Jinpu New District Employment and Social 4,510.00
Insurance Business Service Centre Skills Upgrading Special
Account – Work-for-Training Grants
Additional tax relief for retired soldiers in 2022 1,080,000.00
Benxi Human Resources Service Centre Unemployment 6,308,848.00
Insurance Fund
Tax returns 27,685,686.22 771,262.00
Withholding and remitting tax income 913,893.41 3,686,940.10
Value-added tax exemption 394,898.00 -
Notes of Financial Report Page 108
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Amount
Amount incurred in
Item incurred in the
the prior period
current period
Total 79,554,896.45 72,300,830.48
(XLV) Investment income
Amount incurred
Amount incurred
Item in the current
in the prior period
period
Investment income from long-term equity investments
-1,085,968.20 -181,084.64
accounted for under the equity method
Investment income from the disposal of long-term
-294,462.57 88,020,044.39
equity investments
Investment income from the holding of financial assets
held for trading
Investment income from the disposal of financial assets
-6,558,780.75
held for trading
Gain from remeasurement of remaining equity at fair
4,154,883.39
value after loss of control
Gain from debt restructuring 5,179,346.89 1,274,270.98
Others -6,626,340.44 2,879,850.07
Total -2,827,424.32 89,589,183.44
(XLVI) Credit impairment losses
Amount incurred in the Amount incurred in the
Item
current period prior period
Bad debt losses on accounts receivable -21,955,575.63 9,155,504.25
Bad debt losses on other receivables 11,912,298.08 -4,789,476.31
Total -10,043,277.55 4,366,027.94
(XLVII) Assets impairment losess
Amount incurred in the Amount incurred in the
Item
period prior period
Loss on decline in value of inventories and
impairment loss on contract performance 15,745,868.44 33,475,219.25
costs
Impairment loss on fixed assets 19,593,534.81
Total 35,339,403.25 33,475,219.25
(XLVIII) Assets disposal gains
Amounts included in non-
Amount incurred in Amount incurred in
Item recurring gains and losses for
the period the prior period the current period
Gains of disposal of
298,940,955.41 3,648,546.62 298,940,955.41
fixed assets
Notes of Financial Report Page 109
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Amounts included in non-
Amount incurred in Amount incurred in
Item recurring gains and losses for
the period the prior period
the current period
Total 298,940,955.41 3,648,546.62 298,940,955.41
(XLIX) Non-operating income
Amount recorded in
Amount incurred in Amount incurred in non-recurring gains
Item
the period the prior period and losses during
the current period
Incomes of destruction and
retirement of non-current 22,695,633.31 19,686,518.10 22,695,633.31
assets
Donation accepted 116,390.00 116,390.00
Liquidated damages 2,795,340.47 82,285.55 2,795,340.47
Unpayable accounts payable
10,136,697.80 17,144,884.54 10,136,697.80
(Debt liquidation income)
Others 7,651,073.78 3,217,256.20 7,651,073.78
Total 43,395,135.36 40,130,944.39 43,395,135.36
(L) Non-operating expenses
Amount recorded in
Amount incurred in Amount incurred in non-recurring gains
Item
the period the prior period and losses during
the current period
Losses on destruction and
retirement of non-current 88,675,217.02 26,618,184.57 88,675,217.02
assets
Penalty expenses 5,867,021.85 4,993.20 5,867,021.85
Others 516,843.20 516,843.20
Total 95,059,082.07 26,623,177.77 95,059,082.07
(LI) Income tax expenses
1. Table of income tax expenses
Amount incurred in the Amount incurred in the
Item
period prior period
Current income tax expenses 83,737,591.43 108,153,891.06
Deferred income tax expenses 10,723,190.66 17,220,286.35
Total 94,460,782.09 125,374,177.41
2. Reconciliation between income tax expense and accounting profit
Amount incurred in the
Item
current period
Total profit -1,575,610,062.64
Notes of Financial Report Page 110
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Amount incurred in the
Item
current period
Income tax expense calculated at statutory [or applicable] tax rate -393,902,515.66
Effect of different tax ratios used by subsidiaries 32,462,151.19
Effect of the adjustment on prior-period income tax 14,392,495.72
Effect of non-taxable income 587,418.51
Effect of non-deductible costs, expenditures and losses 13,199,477.94
Effect of deductible losses for using deferred income tax assets not
-20,412,569.67
confirmed in the early period
Effect of deductible temporary differences or deductible losses of
501,737,365.06
deferred income tax assets not confirmed in the current period.
Changes led by tax rate adjustment in the balance of deferred income
117,428.09
tax assets / liabilities at the beginning of the period.
Others -53,720,469.08
Income tax expenses 94,460,782.09
(LII) Cash flow statement items
1. Other cash in relation to operating activities
(1) Other cash received in relation to operating activities
Amount incurred in the Amount incurred in the
Item
period prior period
Current accounts, advances received 14,699,541.48 5,681,740.65
Interest income 54,957,360.07 80,619,490.18
Special subsidies, grants 149,050,517.00 9,720,381.00
Non-operating income 8,470,709.79 1,853,285.67
Others 56,843,488.47 25,134,883.78
Total 284,021,616.81 123,009,781.28
(2) Other cash paid in relation to operating activities
Amount incurred in the Amount incurred in the
Item
period prior period
Intercompany current accounts 20,254,516.96 15,076,408.22
Administration expenses 87,569,406.75 45,010,167.69
Selling expenses 9,993,368.25 19,555,768.39
Service charges 4,755,565.60 8,286,059.01
Others 296,503,108.11 397,007.18
Total 419,075,965.67 88,325,410.49
2. Other cash in relation to financing activities
(1) Other cash received in relation to financing activities
Amount incurred in the Amount incurred in the
Item
period prior period
Notes, letter of guarantee, and letter of credit 1,128,377,111.10 1,845,751,595.78
Notes of Financial Report Page 111
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Amount incurred in the Amount incurred in the
Item
period prior period
margins
Recovery of time deposits - 174,000,000.00
Recovery of short-term borrowing funds used
- 740,000,000.00
for targeted payments
Total 1,128,377,111.10 2,759,751,595.78
(2) Other cash paid in relation to financing activities
Amount incurred in the Amount incurred in the
Item
period prior period
Notes, letter of guarantee, and letter of credit
1,981,675,071.06 391,052,880.08
margins
Short-term borrowing funds used for targeted
17,811,412.73 -
payments
Lease payments 40,645,381.40 93,692,716.62
Restricted deposits - 1,185,000.00
Total 2,040,131,865.19 485,930,596.70
(LIII) Supplementary information of cash flow statement
1. Supplementary information of cash flow statement
Current period
Supplementary information Prior period amount
amount
1. Reconciliation of net profit to cash flows from
operating activities
Net profit -1,670,070,844.73 -1,206,051,719.86
Add: Credit impairment losses 35,339,403.25 33,475,219.25
Provision for impairment of assets -10,043,277.55 4,366,027.94
Depreciation of fixed assets 1,628,409,626.63 1,941,797,897.36
Depreciation of productive biological assets
Depreciation of oil and gas assets
Depreciation of right-of-use assets 60,374,534.52 60,374,534.42
Amortisation of intangible assets 6,764,501.28 7,072,335.72
Amortisation of long-term deferred expenses
Loss on disposal of fixed assets, intangible assets
-298,940,955.41 -3,648,546.62
and other long-term assets (gain listed with “-”)
Loss on damaged and retired non-current assets
65,979,583.71 6,931,666.47
(gain listed with “-”)
Loss on changes in fair value (gain listed with “-”)
Financial expenses (gain listed with “-”) 355,751,288.00 595,403,596.52
Investment losses (gain listed with “-”) 2,827,424.32 -89,589,183.44
Decrease in deferred tax assets (increase listed
25,816,824.26 22,697,558.71
with "-")
Decrease in deferred tax assets (increase listed
-15,093,633.60
with "-")
Decrease in inventories (increase listed with "-") 739,609,711.93 1,692,962,444.55
Decrease in receivables from operating activities
-62,145,226.76 2,034,468,353.22
(increase listed with "-")
Increase in payables from operating activities
3,466,935,369.07 -3,825,777,153.88
(decrease listed with "-")
Notes of Financial Report Page 112
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Current period
Supplementary information Prior period amount
amount
Others -2,163,070.62 1,879,935.20
Net cash flows from operating activities 4,329,351,258.30 1,276,362,965.56
2. Significant non-cash investing and financing
activities:
Conversion of debts into capital
Convertible bonds due within 1 year
Fixed assets under financing leases
3. Changes in cash and cash equivalents:
Closing balance of cash 1,184,774,971.52 1,296,662,683.20
Less：Opening balance of cash 1,296,662,683.20 6,299,099,063.48
Add：Closing balance of cash equivalents
Less：Opening balance of cash equivalents
Net increase in cash and cash equivalents -111,887,711.68 -5,002,436,380.28
2. Composition of cash and cash equivalents
Item Closing balance Opening balance
I. Cash 1,184,774,971.52 1,296,662,683.20
Including: Cash on hand
Bank deposits readily available for payment 1,184,774,971.52 1,296,662,683.20
Other monetary funds readily available for
payment
Deposits of Central Bank funds available for
payment
Deposits from interbanks
Deposits from loan trades
II. Cash equivalents
Including: Bond investment due within three
mouths
III. Balance of cash and cash equivalents at the end
1,184,774,971.52 1,296,662,683.20
of the period
Including: Cash and cash equivalents held but can
not be used by parent company or other
subsidiaries within the Group
(LIV) Foreign currency monetary items
1. Foreign currency monetary items
Foreign currency
Converted RMB balance
Item balance at the end of Cross rate
at the end of the period
the period
Cash and cash equivalents 589,077,898.20
Including: USD 81,951,964.90 7.0827 580,441,181.80
EUR 408,004.95 7.8592 3,206,592.51
HKD 5,992,191.45 0.9062 5,430,123.89
Non-current liabilities due
1,163,435.20
within one year
Including: JPY 23,176,000.00 0.0502 1,163,435.20
Long-term loan 3,490,305.60
Including: JPY 69,528,000.00 0.0502 3,490,305.60
Notes of Financial Report Page 113
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
VI. Equity in other entities
(I) Equity in subsidiaries
1. Constitution of enterprise group
Main place Shareholding
Name of Registration Nature of ratio (%) Acquiring
of
subsidiary place business method
business Direct Indirect
Guangzhou
Bengang Steel &
Guangzhou Guangzhou Sale 100.00 Establishment
Iron Trading Co.,
Ltd
Shanghai
Bengang
Metallurgy
Shanghai Shanghai Sale 100.00 Establishment
Science and
Technology Co.,
Ltd
Dalian
Benruitong
Automobile
Dalian Dalian Production 65.00 Establishment
Material
Technology Co.,
Ltd
Business
Bengang POSCO
combination
Cold-rolled Sheet Benxi Benxi Production 75.00
under common
Co., Ltd.
control
Changchun Business
Bengang Steel & combination
Changchun Changchun Sale 100.00
Iron Trading Co., under common
Ltd. control
Business
Yantai Bengang
combination
Steel Sales Co., Yantai Yantai Sale 100.00
under common
Ltd.
control
Business
Tianjin Bengang
combination
Steel Trading Co., Tianjin Tianjin Sale 100.00
under common
Ltd.
control
Benxi Bengang
Steel & Iron Sales Benxi Benxi Sale 100.00 Establishment
Co., Ltd.
Shenyang
Bengang
Metallurgy
Shenyang Shenyang Sale 100.00 Establishment
Science and
Technology Co.,
Ltd
2. Significant non-wholly owned subsidiaries
Notes of Financial Report Page 114
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Dividends
Profit or loss for Balance of
declared to
Minority the period minority
minority
Name of subsidiary shareholding attributable to interests at the
shareholders
ratio minority end of the
during the
shareholders period
period
Bengang POSCO Cold-
25.00% 68,290,993.31 68,041,170.80 576,089,336.09
rolled Sheet Co., Ltd.
Notes of Financial Report Page 115
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
3. Key financial information on significant non-wholly owned subsidiaries
Closing balance Opening balance
Name of Non- Non-
subsidiary
Current Non-current Current Total Non-current Current Total
Total assets current Liabilities
Current assets Total assets current Liabilities
assets assets liabilities assets liabilities
liabilities liabilities
Bengang
POSCO 1,370,7
Cold- 3,314,945,50 958,741,994.5 4,273,687,500. 1,969,330,156. 1,969,33 2,642,318,664. 1,031,753,449. 3,674,072,114. 1,370,714,059.
rolled
14,059.
6.13 0 63 26 0,156.26 91 22 13 80
Sheet Co., 80
Ltd.
Amount incurred in the period Amount incurred in the prior period
Total Cash flows from Total Cash flows from
Name of subsidiary Operating Operating
Net profit comprehensive operating Net profit comprehensive operating
income income
income activities income activities
Bengang POSCO Cold- -
8,939,304,737.19 273,163,973.25 273,163,973.25 9,820,616,858.86 135,690,857.38 135,690,857.38 368,340,695.62
rolled Sheet Co., Ltd. 492,826,903.06
Notes of Financial Report Page 116
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(II) Equity in joint venture arrangements or associated enterprises
1. Significant joint ventures or associates
The Company has no significant joint ventures or associates.
2. Collected financial information in insignificant joint ventures or associates
Closing balance / Amount Opening balance /
incurred in the year Amount incurred in the
prior year
Joint ventures:
Total book value of investment
The total amount of the following items
calculated in proportion to
shareholding
—Net profit
—Other comprehensive income
—Total comprehensive income
Associates:
Total book value of investment 46,910,346.41 51,030,777.18
The total amount of the following items
-1,085,968.20 -181,084.64
calculated in proportion to shareholding
—Net profit -1,085,968.20 -181,084.64
—Other comprehensive income
—Total comprehensive income -1,085,968.20 -181,084.64
VII. Government grants
(I) Category, amount and listed item of government grants
1. Government grants incurred in the current profit and loss
Amount incurred in the Amount incurred in the
Account title
period prior period
Other income 78,246,105.04 68,613,890.38
VIII. Risks associated with financial instruments
The Company's principal financial instruments include investments in other equity
instruments, borrowings, receivables and payables, and a detailed description of each
financial instrument is set out in Note VI. The risks associated with these financial
instruments, and the risk management policies adopted by the Company to mitigate these
risks, are described below. These risk exposures are managed and monitored by the
Company’s management to ensure that the above risks are kept within limits.
Notes of Financial Report Page 117
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
The Company's objectives in engaging in risk management are to strike an appropriate
balance between risk and return, to minimise the negative impact of risk on the Company's
operating performance and to maximise the interests of shareholders and other equity
investors. Based on these risk management objectives, the Company's basic strategy for
risk management is to identify and analyse the various risks to which the Company is
exposed, establish appropriate risk tolerance limits and manage the risks, as well as
monitor the various risks in a timely and reliable manner to keep the risks within the limits.
1. Credit risk
At December 31st, 2023, the largest exposure to credit risk that could give rise to
financial losses for the Company arises primarily from losses incurred on the
Company's financial assets as a result of the failure of the other party to the contract
to perform its obligations, specifically:
The book value of financial assets is recognised in the consolidated balance sheet;
for financial instruments measured at fair value, the book value reflects the risk
exposure but is not the maximum exposure and its maximum exposure will change
with future changes in fair value.
In order to mitigate credit risk, the Company has established a dedicated
department to determine credit limits, perform credit approvals and implement
other monitoring procedures to ensure that the necessary measures are taken to
collect overdue claims. In addition, the Company reviews the collection of each
individual receivable at each balance sheet date to ensure that adequate provisions
for bad debts are made for uncollectible amounts. As a result, the Company's
management believes that the Company's exposure to credit risk has been
significantly reduced.
The Company's working fund is placed with financial institutions with high credit
ratings and therefore it is a low-credit risk working fund.
2. Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial
obligations as they fall due. The Company manages its liquidity risk by ensuring that
it has sufficient financial liquidity to meet its obligations as they fall due without
incurring unacceptable losses or causing damage to its corporate reputation, and it
Notes of Financial Report Page 118
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
regularly analyses the structure and maturity of its liabilities to ensure that
sufficient funds are available. The Company's management monitors the use of
bank borrowings and ensures compliance with borrowing agreements. At the same
time, the Company negotiates financing with financial institutions to maintain a
certain credit limit and mitigate liquidity risk.
3. Market risk
The market risk of financial instruments refers to the risk that the fair value or future
cash flow of financial instruments fluctuates due to market price changes, including
exchange rate risk, interest rate risk and other price risks.
(1) Interest rate risk
Interest rate risk refers to fluctuations of fair value or future cash flows of a
financial instrument due to market rate changes.
The Company’s exposure to interest rate risk is cash flow interest risk primarily
arising from variable-rate bank balances and variable-rate borrowings. Currently,
the Company does not have a specific policy to manage its interest rate risk. The
management will carefully choose financing methods, and combine fixed
interest rates with variable interest rates, and short-term obligations with long-
term obligations. By using effective interest rate risk management methods, the
Company closely monitors interest rate risk, controls the size of variable-rate
borrowings and will consider interest-rate swaps to acquire an expected
structure of interest rates shall the need arise.
(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's exposure to exchange rate risk relates primarily to USD, HKD, JPY
and EUR. Except for a small amount of purchases of raw materials and sales of
finished goods which are settled in USD, HKD, JPY and EUR, the Company's other
major business activities are settled in RMB. As at December 31st, 2023, the assets
or liabilities described in the table below are the balances of items expressed in USD,
HKD, JPY and EUR.
Notes of Financial Report Page 119
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
December 31st ,
Item December 31st , 2023
2022
Cash and cash equivalents - USD 81,951,964.90 6,358,482.45
Cash and cash equivalents - HKD 5,992,191.45 5,518,749.45
Cash and cash equivalents - EUR 408,004.95 2,866.74
Non-current liabilities due within one
4,700,000.00
year - USD
Non-current liabilities due within one
9,460,158.74
year - EUR
Non-current liabilities due within one
23,176,000.00 23,176,000.00
year - JPY
Long-term borrowings - USD 2,450,000.00
Long-term borrowings - EUR 18,714,699.47
Long-term borrowings - JPY 69,528,000.00 92,704,000.00
IX. Disclosure of fair value
The values input of fair value measurement are divided into three layers:
The first layer input value is the unadjusted quotation of the same assets or liabilities that
can be obtained on the measurement day in the active market.
The second layer input value is the directly or indirectly observable input value of the
related assets or liabilities in addition to the first layer input value.
The third layer input value is the unobservable input value of the related assets or liabilities.
The layer of fair value measurement results is determined by the lowest level of the input
value which is of great significance to the fair value measurement as a whole.
(I) Period-end fair value of assets and liabilities measured at fair value
Notes of Financial Report Page 120
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Fair value at end of the period
Fair value Fair value
Fair value
Item measuremet measuremet
measuremet in Total
in the first in the
the third level
level second level
I. Continous fair value
measurement
◆Financing of accounts
806,822,622.43 806,822,622.43
receivable
◆Investments in other
974,463,039.83 974,463,039.83
equity instruments
Total amount of assets with
continuous fair value 1,781,285,662.26 1,781,285,662.26
measurement
X. Related parties and related transactions
(I) The parent company of the Company
Voting
Place of Nature of Registered Shareholding
Name of the Company power
registration business capital ratio (%)
ratio (%)
Benxi Steel & Iron (Group) Benxi, 8 billion
Production 58.65 58.65
Co., Ltd. Liaoning RMB
The ultimate controlling party of the Company is Ansteel Group Co., Ltd.
(II) Details of subsidiaries
For details of subsidiaries of the Company please refer to Note “VI. ”Entities in other
subjects”.
(III) The Company’s joint ventures and associates
For details of the Company’s joint ventures and associates please refer to Note “VI. Entities
in other subjects”.
Other joint ventures or joint ventures that have related party transactions with the
Company in the current period or have related party transactions with the Company in the
previous period to form a balance are as follows :
Name of the Company's joint ventures and associates Relationship with the Company
Benxi Iron and Steel Baojin (Shenyang) Automobile New
Associates
Material Technology Co., Ltd.
Notes of Financial Report Page 121
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(IV) Details of other related parties
Name of other related parties Relationship
Benxi Iron and Steel (Group) Co., Ltd. Parent company
Bengang Group Co., Ltd. Parent company & controlling shareholder
Benxi Iron and Steel (Group) Chint Building Materials
Same parent company
Co., Ltd.
Benxi Steel Stainless Steel Cold Rolling Dandong Co.,
Same parent company
Ltd
Benxi Iron and Steel (Group) Real Estate Development
Same parent company
Co., Ltd.
Benxi Iron and Steel (Group) Engineering Construction
Same parent company
Supervision Co., Ltd.
Benxi Iron and Steel (Group) Machinery Manufacturing
Same parent company
Co., Ltd.
Benxi Iron and Steel (Group) Construction Co., Ltd. Same parent company
Benxi Iron and Steel (Group) Mining Co., Ltd. Same parent company
Benxi Iron and Steel (Group) Thermal Power
Same parent company
Development Co., Ltd.
Benxi Iron and Steel (Group) Equipment Engineering
Same parent company
Co., Ltd.
Benxi Iron and Steel (Group) Design and Research
Same parent company
Institute
Benxi Iron and Steel (Group) Industrial Development
Same parent company
Co., Ltd.
Benxi Iron and Steel (Group) Information Automation
Same parent company
Co., Ltd.
Benxi Iron and Steel (Group) Construction Co., Ltd. Same parent company
Benxi Iron and Steel (Group) Metallurgical Slag Co., Ltd. Same parent company
Benxi New Cause development Co., Ltd Same parent company
Dalian Boluole steel pipe Co., Ltd Same parent company
Guangzhou Free Trade Zone Benxi Steel Sales Co., Ltd Same parent company
Liaoning hengtai heavy machinery Co., Ltd Same parent company
Liaoning Metallurgical Technician College Same parent company
Liaoning Metallurgical Vocational and Technical College Same parent company
Benxi Iron and Steel Electric Co., Ltd Associates of parent company
Suzhou Longben metal material Co., Ltd Joint-stock company
Wuhan Yuanhong trading Co., Ltd Joint-stock company
Zhejiang Jingrui steel processing Co., Ltd Joint-stock company
North Hengda logistics Co., Ltd Both belong to Bengangl Group
Benxi Iron and Steel Group Finance Co., Ltd Both belong to Bengangl Group
Benxi Iron and Steel Group International Economic
Both belong to Bengangl Group
Trade Co., Ltd.
Benxi Steel Tendering Co., Ltd Both belong to Bengangl Group
Benxi Beitai Casting Pipe Co., Ltd Both belong to Bengangl Group
Benxi Beiying Iron and Steel (Group) Co., Ltd. Both belong to Bengangl Group
Benxi High-Tech Drilling Tool Manufacturing Co., Ltd Both belong to Bengangl Group
Liaoning Hengyi Steel Trading Co., Ltd Both belong to Bengangl Group
Ansteel Electrlc 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
Both belong to Ansteel Group
Branch
Ansteel Steel Processing&Distribution (Dalian) Co., Ltd. Both belong to Ansteel Group
Ansteel Steel Processing&Distribution (Changchun) Co.,
Both belong to Ansteel Group
Ltd.
Ansteel Steel Processing&Distribution (Zhengzhou) Co.,
Both belong to Ansteel Group
Ltd.
Ansteel Steel Distribution (Hefei) Co., Ltd. Both belong to Ansteel Group
Notes of Financial Report Page 122
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Name of other related parties Relationship
Ansteel Steel Distribution (Wuhan) Co., Ltd. Both belong to Ansteel Group
Ansteel Steel 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
Both belong to Ansteel Group
Equipment Manufacturing Co., Ltd.
Ansteel Group Finance Co., Ltd. Both belong to Ansteel Group
Ansteel Group Engineering Technology Development
Both belong to Ansteel Group
Co., Ltd.
Ansteel Group International Economic 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 Science and 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
Both belong to Ansteel Group
Operation and Maintenance Co., Ltd.
Anshan Iron and Steel Industry Group Metallurgical
Both belong to Ansteel Group
Machinery Co., Ltd
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
Anshan Iron and Steel Heavy Machinery Design and
Both belong to Ansteel Group
Research Institute Co., Ltd
Ansteel heavy machinery Co., Ltd Both belong to Ansteel Group
Ansteel cast steel Co., Ltd Both belong to Ansteel Group
Chengdu Pansteel Hotel Co., Ltd Both belong to Ansteel Group
Delin industrial products Co., Ltd Both belong to Ansteel Group
Delin dry port supply chain service Co., Ltd Both belong to Ansteel Group
Guangzhou Ansteel steel processing Co., Ltd Both belong to Ansteel Group
Pansteel and Steel Group Xichang Steel Vanadium Co.,
Both belong to Ansteel Group
Ltd
Panzhong Yihong Metal Products (Chongqing) Co., Ltd Both belong to Ansteel Group
Tianjin Ansteel steel processing and distribution Co.,
Both belong to Ansteel Group
Ltd
Tianjin Ansteel International North Trading Co., Ltd Both belong to Ansteel Group
Changchun FAW Ansteel Steel Processing and
Both belong to Ansteel Group
Distribution Co., Ltd
Ansteel tendering Co., Ltd Both belong to Ansteel Group
Ansteel Group Engineering Technology Co., Ltd Associates of Ansteel Group
(V) Details of related party transaction
1. Related party transaction of purchase and sale of goods and providing and
receiving services
Table of purchase of goods/receiving services
Notes of Financial Report Page 123
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Related
party Amount incurred in Amount incurred in
Related party
transactio the period the prior period
n
Repair
Ansteel Electric Co., Ltd. 988,649.97 985,900.00
charge
Ansteel Steel Scrap Resources (Anshan) Raw
655,692,228.69 501,264,827.39
Co., Ltd. material
Ansteel Steel Processing and Processin
532,674.24
Distribution (Dalian) Co., Ltd. g charge
Ansteel Steel Processing and Storage
37,433.12
Distribution (Changchun) Co., Ltd. fee
Ansteel Steel Processing and Processin
1,430,380.27 101,089.62
Distribution (Changchun) Co., Ltd. g charge
Raw
Ansteel Steel Rope Co., Ltd. 402,320.80
material
Ansteel Co., Ltd. Steel 1,526,698.42
Raw
Ansteel Co., Ltd. 937,641.12 75,504,413.81
material
Ansteel Group (Anshan) Railway
Raw
Transportation Equipment 541,592.84
material
Manufacturing Co., Ltd.
Financial
Ansteel Group Finance Co., Ltd. 843,849.85 509,257.61
service
Ansteel Group Engineering Technology Engineeri
495,812,040.18 63,375,792.47
Co., Ltd. ng cost
Ansteel Group Engineering Technology Repair
663,800.00
Co., Ltd. charge
Ansteel Group International Economic
Raw fuels 369,490,000.25 58,292,035.42
Trade Co., Ltd.
Ansteel Group Mining Gongchangling Raw
375,015,701.56 362,137,279.01
Co., Ltd. materials
Raw
Ansteel Group Mining Co., Ltd 99,573,714.25
materials
Technical
Ansteel Group Co., Ltd. 559,822.74
service
Engineeri
Ansteel Group Automation Co., Ltd 108,215,000.00 72,873,000.00
ng cost
Engineeri
Ansteel Construction Group Co., Ltd. 101,060,733.94 34,442,304.94
ng cost
Repair
Ansteel Construction Group Co., Ltd. 3,727,071.28
service
Ansteel Science and Technology Testing
4,182.00
Development Co., Ltd. fee
Raw
Ansteel Energy Technology Co., Ltd. auxiliary 116,947.24
materials
Ansteel Industrial Group (Anshan)
Repair
Equipment Operation and Maintenance 14,317,414.23
service
Co., Ltd.
Anshan Iron and Steel Industry Group Spare
9,254,415.92
Metallurgical Machinery Co., Ltd. parts
Anshan Iron and Steel Industry Group Repair
1,093,480.00 2,511,630.02
Metallurgical Machinery Co., Ltd. charge
Raw
Ansteel Shuangsheng (Anshan) Fan Co.,
auxiliary 149,000.00
Ltd.
materials
Anshan Iron and Steel Heavy Machinery Engineeri
1,478,000.00 6,200,000.00
Design and Research Institute Co., Ltd ng cost
Ansteel Heavy Machinery Co., Ltd Spare 4,130,873.60 3,000,690.00
Notes of Financial Report Page 124
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Related
party Amount incurred in Amount incurred in
Related party
transactio the period the prior period
n
parts
Engineeri
Ansteel Heavy Machinery Co., Ltd 3,627,700.00
ng cost
Conferenc
Anshan Ansteel International Travel
e 3,771,073.93
Agency Co., Ltd.
expenses
Raw
Anshan Iron and Steel Metallurgy
auxiliary 20,592,124.94
Furnace Material Technology Co., Ltd
materials
Storage
North Hengda Logistics Co., Ltd 5,485,245.27 4,261,203.22
charges
Processin
North Hengda Logistics Co., Ltd 731,028.05 1,401.77
g charge
Sales
North Hengda Logistics Co., Ltd service 4,243,472.90
fee
Raw
auxiliary
North Hengda Logistics Co., Ltd materials 5,619,710.89 25,720,478.21
and spare
parts
Testing
North Hengda Logistics Co., Ltd 91,261,108.54 21,267,471.20
fee
Raw
materials
Benxi Steel Stainless Steel Cold Rolling
and 348,937.34
Dandong Co., Ltd
auxiliary
materials
Spare
Benxi Iron and Steel Electric Co., Ltd 181,875.00
parts
Engineeri
Benxi Iron and Steel Electric Co., Ltd 4,899,146.41
ng cost
Repair
Benxi Iron and Steel Electric Co., Ltd 10,918,383.89 13,542,063.00
charge
Raw
Benxi Iron and Steel Electric Co., Ltd auxiliary 134,365,349.92 121,219,826.14
materials
Benxi Iron and Steel Gaoyuan Industrial Engineeri
4,631,760.00
Development Co., Ltd ng cost
Benxi Iron and Steel Gaoyuan Industrial Repair
2,328,495.00
Development Co., Ltd charge
Raw
Benxi Iron and Steel Gaoyuan Industrial
auxiliary 929,311.04
Development Co., Ltd
materials
Benxi Iron and Steel Group Agency
61,290,890.44 60,892,920.39
International Economic Trade Co., Ltd. fee
Repair
Benxi Iron and Steel Group Co., Ltd 3,804,811.13
service
Spare
Benxi Aike Hydraulic Seal Co., Ltd 6,297,816.12
parts
Engineeri
Benxi Aike Hydraulic Seal Co., Ltd 117,514.00
ng cost
Raw
materials
Benxi North Iron Industry Co., Ltd and 303,625,003.05
auxiliary
materials
Notes of Financial Report Page 125
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Related
party Amount incurred in Amount incurred in
Related party
transactio the period the prior period
n
Benxi Beiying Iron and Steel (Group) Storage
9,016.26
Co., Ltd. charges
Benxi Beiying Iron and Steel (Group) Service
73,782,240.24
Co., Ltd. fee
Energy
Benxi Beiying Iron and Steel (Group)
and 619,907,820.37 779,110,506.13
Co., Ltd.
power
Benxi Beiying Iron and Steel (Group) Heating
13,310,207.04
Co., Ltd. costs
Benxi Beiying Iron and Steel (Group) Repair
8,807,530.29 97,016,086.32
Co., Ltd. charge
Raw
materials,
Benxi Beiying Iron and Steel (Group)
auxiliary 10,862,670,931.26 14,015,404,775.69
Co., Ltd.
materials
and fuels
Benxi Beiying Iron and Steel (Group) Testing
8,032,969.35 6,238,586.40
Co., Ltd. fee
Benxi Beiying Iron and Steel (Group) Spare
237,598,626.48
Co., Ltd. parts
Benxi Beiying Iron and Steel (Group) Agency
169,853.96
Co., Ltd. fee
Raw
materials,
Benxi Dongfeng Lake Iron and Steel
auxiliary 44,370,758.10
Resources Utilization Co., Ltd
materials
and fuels
Benxi Iron and Steel (Group)
Engineeri
Engineering Construction Supervision 2,893,311.49 1,767,865.81
ng cost
Co., Ltd.
Benxi Iron and Steel (Group) Guomao Port
636,896,070.98 843,578,220.03
Tengda Co., Ltd. surcharge
Benxi Iron and Steel (Group)
Engineeri
Electromechanical Installation 43,034,800.02
ng cost
Engineering Co., Ltd.
Raw
Benxi Iron and Steel (Group)
materials
Electromechanical Installation 1,153,388.60
and spare
Engineering Co., Ltd.
parts
Raw
materials,
Benxi Iron and Steel (Group) Machinery axilliary
73,747,200.55 154,332,860.09
Manufacturing Co., Ltd. materials
and spare
parts
Benxi Iron and Steel (Group) Machinery Engineeri
48,057,147.53
Manufacturing Co., Ltd. ng cost
Benxi Iron and Steel (Group) Machinery Service
11,036,444.38
Manufacturing Co., Ltd. fee
Benxi Iron and Steel (Group) Machinery Repair
9,039,082.00 63,956,264.17
Manufacturing Co., Ltd. charge
Benxi Iron and Steel (Group) Machinery
Rental fee 717,737.14
Manufacturing Co., Ltd.
Benxi Iron and Steel (Group) Inspection Engineeri
114,000.00
and Testing Co., Ltd. ng cost
Benxi Iron and Steel (Group) Engineeri
554,873.39
Construction Advanced Decoration Co., ng cost
Notes of Financial Report Page 126
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Related
party Amount incurred in Amount incurred in
Related party
transactio the period the prior period
n
Ltd.
Benxi Iron and Steel (Group) Engineeri
364,430,836.36 520,498,816.97
Construction Co., Ltd. ng cost
Benxi Iron and Steel (Group) Service
7,247,447.63
Construction Co., Ltd. fee
Equipmen
Benxi Iron and Steel (Group) t
4,008,300.00
Construction Co., Ltd. calibratio
n
Benxi Iron and Steel (Group) Repair
34,709,635.27 254,504,020.71
Construction Co., Ltd. charge
Raw
Benxi Iron and Steel (Group) materials
4,049,388.78 35,884,838.98
Construction Co., Ltd. and spare
parts
Benxi Iron and Steel (Group) Testing
88,934.45 785,478.54
Construction Co., Ltd. fee
Benxi Iron and Steel (Group) Mine Engineeri
43,916,148.59
Construction Engineering Co., Ltd. ng cost
Benxi Iron and Steel (Group) Mine Repair
12,066,104.00
Construction Engineering Co., Ltd. charge
Raw
Benxi Iron and Steel (Group) Mine
auxiliary 140,320.00
Construction Engineering Co., Ltd.
materials
Benxi Iron and Steel (Group) Mining Spare
2,248,751.72
Co., Ltd. parts
Benxi Iron and Steel (Group) Mining Service
150,042.14
Co., Ltd. fee
Energy
Benxi Iron and Steel (Group) Mining
and 7,476,859.63
Co., Ltd.
power
Raw
materials
Benxi Iron and Steel (Group) Mining
and 6,088,009,996.57 6,526,348,389.47
Co., Ltd.
auxiliary
materials
Benxi Iron and Steel (Group) Mining Repair
33,111,773.58
Co., Ltd. service
Benxi Iron and Steel (Group) Road and
Engineeri
Bridge Construction Engineering Co., 1,596,283.35
ng cost
Ltd.
Benxi Iron and Steel (Group) Road and
Raw
Bridge Construction Engineering Co., 790,211.60
materials
Ltd.
Benxi Iron and Steel (Group) Thermal Heating
797,049.85 3,243,574.57
Power Development Co., Ltd. costs
Raw
materials
Benxi Iron and Steel (Group) Thermal
and 373,267.40 397,091.33
Power Development Co., Ltd.
auxiliary
materials
Benxi Iron and Steel (Group) Equipment Spare
7,015,595.48
Engineering Co., Ltd. parts
Benxi Iron and Steel (Group) Equipment Engineeri
449,295,500.86 26,575,682.85
Engineering Co., Ltd. ng cost
Benxi Iron and Steel (Group) Equipment Repair
142,853,909.52 103,244,339.53
Engineering Co., Ltd. charge
Notes of Financial Report Page 127
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Related
party Amount incurred in Amount incurred in
Related party
transactio the period the prior period
n
Raw
materials
Benxi Iron and Steel (Group) Equipment
and 5,844,867.44 3,258,197.53
Engineering Co., Ltd.
auxiliary
materials
Benxi Iron and Steel (Group) Equipment Testing
2,174,824.48
Engineering Co., Ltd. fee
Benxi Iron and Steel (Group) Industrial Engineeri
316,333.57 1,974,511.01
Development Co., Ltd. ng cost
Benxi Iron and Steel (Group) Industrial Service
362,000.00
Development Co., Ltd. fee
Benxi Iron and Steel (Group) Industrial Repair
1,155,049.00 3,445,388.98
Development Co., Ltd. charge
Raw
materials
Benxi Iron and Steel (Group) Industrial
and 37,503,759.27 407,371,792.39
Development Co., Ltd.
auxiliary
materials
Benxi Iron and Steel (Group) Industrial Testing
5,862,435.57 4,953,917.35
Development Co., Ltd. fee
Benxi Iron and Steel (Group) Industrial Spare
46,331,491.99
Development Co., Ltd. parts
Benxi Iron and Steel (Group) Testing
14,500,000.00
Information Automation Co., Ltd. fee
Benxi Iron and Steel (Group) Engineeri
89,244,708.98
Information Automation Co., Ltd. ng cost
Benxi Iron and Steel (Group) Repair
15,339,461.49
Information Automation Co., Ltd. service
Raw
auxiliary
Benxi Iron and Steel (Group)
materials 3,068,409.30 8,171,621.28
Information Automation Co., Ltd.
and spare
parts
Raw
materials
Benxi Iron and Steel (Group)
and 239,884,805.78 289,543,277.06
Metallurgical Slag Co., Ltd.
auxiliary
materials
Engineeri
Benxi Iron and Steel (Group) Co., Ltd. 46,971.56
ng cost
Financial
Benxi Iron and Steel (Group) Co., Ltd. 1,397,473.55
service
Energy
Benxi Iron and Steel (Group) Co., Ltd. and 73,134.75
power
Heating
Benxi Iron and Steel (Group) Co., Ltd. 328,521.69
costs
Equipmen
t
Benxi Iron and Steel (Group) Co., Ltd. 3,321,904.00
calibratio
n
Repair
Benxi Iron and Steel (Group) Co., Ltd. 320,657,100.00 292,771,749.19
charge
Raw
materials
Benxi Iron and Steel (Group) Co., Ltd. 181,824.33
and
auxiliary
Notes of Financial Report Page 128
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Related
party Amount incurred in Amount incurred in
Related party
transactio the period the prior period
n
materials
Testing
Benxi Iron and Steel (Group) Co., Ltd. 278,654.36
fee
Testing
Benxi Iron and Steel (Group) Co., Ltd. 29,476.75
fee
Benxi High-Tech Drilling Tool Spare
33,451.50
Manufacturing Co., Ltd parts
Raw
Benxi Xihu Metallurgical Burden Co.,
auxiliary 207,529,292.47
Ltd
materials
Benxi New Business Development Co., Engineeri
24,369.91
Ltd ng cost
Benxi New Business Development Co., Service
574,417.10
Ltd fee
Benxi New Business Development Co.,
Rental fee 2,920,353.98
Ltd
Raw
auxiliary
Benxi New Business Development Co.,
materials 12,217,302.64
Ltd
and meal
fee
Spare
Dalian Boluole Steel Pipe Co., Ltd 693,726.32
parts
Engineeri
Delin Industrial Products Co., Ltd 834,704.34
ng cost
Raw
auxiliary
Delin Industrial Products Co., Ltd materials 74,741,575.57 10,765,203.78
and spare
parts
Delin Land Port Supply Chain Service Storage
246,824.45
Co., Ltd charges
Delin Land Port Supply Chain Service Testing
568,487.64 911,910.76
Co., Ltd fee
Liaoning Hengtai Heavy Machinery Co., Engineeri
37,188,300.00 13,781,211.87
Ltd ng cost
Liaoning Hengtai Heavy Machinery Co., Service
350,800.00
Ltd fee
Liaoning Hengtai Heavy Machinery Co., Repair
18,645,700.00 15,853,592.59
Ltd charge
Raw
auxiliary
Liaoning Hengtai Heavy Machinery Co.,
materials 10,665,788.41 18,919,911.07
Ltd
and spare
parts
Liaoning Hengtai Heavy Machinery Co., Testing
78,037.61 147,379.53
Ltd fee
Liaoning Hengtong Metallurgical Spare
133,050,407.42 135,689,377.05
Equipment Manufacturing Co., Ltd parts
Liaoning Hengtong Metallurgical Repair
4,914,275.00 5,984,428.81
Equipment Manufacturing Co., Ltd charge
Liaoning Hengtong Metallurgical Engineeri
2,070,000.00
Equipment Manufacturing Co., Ltd ng cost
Spare
Liaoning Hengyi Steel Trading Co., Ltd 410,585,327.20
parts
Service
Liaoning Lide IOT Co., Ltd 35,512,505.43
fee
Notes of Financial Report Page 129
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Related
party Amount incurred in Amount incurred in
Related party
transactio the period the prior period
n
Liaoning Metallurgical Technician Spare
13,181,606.66
College parts
Liaoning Metallurgical Technician Training
1,180,127.18
College expense
Liaoning Metallurgical Vocational and Training
239,175.22
Technical College expense
Liaoning Metallurgical Vocational and Repair
14,450,747.87
Technical College service
Liaoning Yitong Machinery Spare
8,183,307.29
Manufacturing Co., Ltd parts
Liaoning Yitong Machinery Engineeri
18,050.00
Manufacturing Co., Ltd ng cost
Liaoning Yitong Machinery Repair
15,272.60
Manufacturing Co., Ltd charge
Pansteel Group Chengdu Vanadium and Raw
Titanium Resources Development Co., auxiliary 3,573,383.68
Ltd materials
Panzhihua Iron and Steel Group
Engineeri
Engineering Engineering Consulting Co., 3,535,680.02
ng cost
Ltd
Shanxi Products International Energy
Raw fuels 43,561,493.05
Co., Ltd
Tianjin Ansteel Steel Processing and Processin
1,448,165.59
Distribution Co., Ltd g charge
Total 23,646,547,348.47 27,075,669,758.18
Table of selling products/providing services
Amount incurred
Related party Amount incurred
Related party in the prior
transaction in the period
period
Ansteel (Hangzhou) Automobile Steel and Steel
2,034,371.33
Material Technology Co., Ltd. products
Steel and Steel
Ansteel Steel Processing and products, processing
72,575,160.26 22,445,530.77
Distribution (Dalian) Co., Ltd. income and logistic
services
Ansteel Steel Processing and Steel and Steel
24,513,902.53 15,877,239.25
Distribution (Changchun) Co., Ltd. products
Ansteel Steel Processing and Steel and Steel
10,469,864.30 6,664,609.41
Distribution (Zhengzhou) Co., Ltd. products
Ansteel Steel Distribution (Hefei) Steel and Steel
9,172,909.61 41,250,074.07
Co., Ltd. products
Ansteel Steel Distribution (Wuhan) Steel and Steel
55,103,512.47 18,120,370.66
Co., Ltd. products
Steel and Steel
products and
Ansteel Co., Ltd 1,317,394.48 61,069,908.45
information
technology services
Ansteel Chemical Technology Co., Chemical and by
156,801,931.63 142,937,378.90
Ltd products
Ansteel Group Engineering
Energy and power 39,419.63 81,276.69
Technology Co., Ltd
Ansteel Group Energy Saving Energy and power, 10,778,642.31
Notes of Financial Report Page 130
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Amount incurred
Related party Amount incurred
Related party in the prior
transaction in the period
period
Technology Service Co., Ltd detectionized test
Ansteel Group Mining Co., Ltd detectionized test 6,415.09
Ansteel Construction Group Co.,
Energy and power 197,984.99 119,001.02
Ltd
Chemical and by
Ansteel Green Resources products, raw
133,922,761.19 92,587,078.07
Technology Co., Ltd auxiliary materials
and spare parts
Ansteel Energy Technology Co., Ltd Energy and power 23,183,781.78 124,582.55
Anshan Iron and Steel Heavy
Machinery Design and Research Energy and power 4,853.78
Institute Co., Ltd
Steel and Steel
North Hengda Logistics Co., Ltd products, 3,931,414,139.80 1,575,318,242.55
detectionized test
Benxi Iron and Steel Electric Co.,
Energy and power 621,817.77 875,626.86
Ltd
Benxi Iron and Steel Gaoyuan Energy and power,
11,039.01
Industrial Development Co., Ltd detectionized test
Benxi Iron and Steel Group Co., Ltd Energy and power 208,112.60 135,434.69
Raw auxiliary
Benxi North Iron Industry Co., Ltd materials and spare 192,687,665.61
parts
Energy and power,
detectionized test,
Benxi Beiying Iron and Steel chemical and by-
282,002,512.53 59,612,037.69
(Group) Co., Ltd. products, raw
auxiliary materials
and spare parts
Energy and power,
detectionized test,
Benxi Dongfeng Lake Iron and chemical and by-
27,512,145.34
Steel Resources Utilization Co., Ltd proucts, raw
auxiliary materials
and spare parts
Benxi Iron and Steel (Group) Real
Energy and power 74,559.84 110,785.80
Estate Development Co., Ltd.
Benxi Iron and Steel (Group)
Engineering Construction Energy and power 2,245.04 2,229.09
Supervision Co., Ltd.
Benxi Iron and Steel (Group)
Electromechanical Installation Energy and power 272,525.36
Engineering Co., Ltd.
Steel and Steel
products, energy
and power,
Benxi Iron and Steel (Group)
detectionized test, 12,911,322.91 18,448,720.59
Machinery Manufacturing Co., Ltd.
raw auxiliary
materials and spare
parts
Benxi Iron and Steel (Group)
Construction Advanced Decoration Energy and power 527.01
Co., Ltd.
Energy and power,
information
Benxi Iron and Steel (Group)
technology services 4,299,873.92 68,247,810.64
Construction Co., Ltd.
and detectionized
test
Notes of Financial Report Page 131
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Amount incurred
Related party Amount incurred
Related party in the prior
transaction in the period
period
Benxi Iron and Steel (Group) Mine
Energy and power 595,139.57
Construction Engineering Co., Ltd.
Benxi Iron and Steel (Group) Energy and power
Mining Liaoyang Jiajiabao Iron and detectionized 55,244,352.50
Mine Co., Ltd. test
Energy and power,
Benxi Iron and Steel (Group) detectionized test,
Mining Liaoyang Maerling Pellet raw auxiliary 83,205,175.45
Co., Ltd. materials and spare
parts
Benxi Iron and Steel (Group) Energy and power
Mining Yanjiagou Limestone Mine and detectionized 2,052,313.28
Co., Ltd. test
Energy and power,
chemical and by-
products, logistic
Benxi Iron and Steel (Group) transportation,
559,201,878.94 956,298,497.17
Mining Co., Ltd. detectionized test,
raw auxiliary
materials and spare
parts
Benxi Iron and Steel (Group) Road
and Bridge Construction Detectionized test 4,695.28
Engineering Co., Ltd.
Energy and power,
Benxi Iron and Steel (Group) detectionized test,
Thermal Power Development Co., raw auxiliary 66,722,210.85 27,593,537.32
Ltd. materials and spare
parts
Energy and power,
detectionized test,
Benxi Iron and Steel (Group) raw auxiliary
10,477,308.55 1,066,969.43
Equipment Engineering Co., Ltd. materials, spare
parts and lease of
fixed assets
Energy and power,
detectionized test,
Benxi Iron and Steel (Group) logistic
11,699,668.02 40,159,705.27
Industrial Development Co., Ltd. transportaiton, raw
auxiliary materials
and spare parts
Energy and power,
detectionized test,
Benxi Iron and Steel (Group)
raw auxiliary 943,413.65 153,773.87
Information Automation Co., Ltd.
materials and spare
parts
raw auxiliary
Benxi Iron and Steel (Group)
materials and spare 94,191,190.98 5,533,038.14
Metallurgical Slag Co., Ltd.
parts
Energy and power,
detectionized test,
Benxi Iron and Steel (Group) Co.,
raw auxiliary 6,966,540.85 15,283,844.12
Ltd.
materials and spare
parts
Benxi Xihu Metallurgical Burden Energy and power,
51,845.77
Co., Ltd detectionized test
Benxi Weier Surfacing
Energy and power 39,029.56
Manufacturing Co., Ltd
Notes of Financial Report Page 132
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Amount incurred
Related party Amount incurred
Related party in the prior
transaction in the period
period
Energy and power
Benxi New Business Development
and detectionized 51,788.65 44,469.48
Co., Ltd
test
Steel and Steel
Dalian Boluole Steel Pipe Co., Ltd products, logistic 16,114,335.27 3,396.23
transportation
Delin Land Port Supply Chain Steel and Steel
816,321,523.81 68,534,296.17
Service Co., Ltd products
Guangzhou Ansteel Steel Pocessing Steel and Steel
12,510,453.69 1,608,574.50
Co., Ltd products
Liaoning Hengtai Heavy Machinery Energy and power,
12,194.90 8,558.44
Co., Ltd detectionized test
detectionized test,
Liaoning Hengtong Metallurgical raw auxiliary
174,388,966.12 35,333,688.31
Equipment Manufacturing Co., Ltd materials and spare
parts
Liaoning Slag Micropowder Co., Ltd detectionized test 12,120.75
Liaoning Yitong Machinery Energy and power,
9,874.53
Manufacturing Co., Ltd detectionized test
Pansteel Group Jiangyou Great Steel and Steel
14,852,323.92
Wall Special Steel Co., Ltd products
Tianjin Ansteel Steel Processing Steel and Steel
1,415,942.58 1,607,469.03
and Distribution Co., Ltd products
Tianjin Ansteel International North Steel and Steel
249,512,844.48
Trade Co., Ltd products
Yantai Ansteel International Trade Steel and Steel
509,560.40
Co., Ltd products
Changchun FAW Ansteel Steel
Steel and Steel
Processing and Distribution Co., 1,969,914.22 9,768,207.73
products
Ltd
Total 7,131,217,998.69 3,287,025,962.96
2. Lease information of related parties
The Company as the lessor:
Lease income recognized in Lease income recognized
Leasee Type of leased assets
the period in the prior period
Ansteel Tendering Co., Warehouse and
255,045.87
Ltd. ancillary facilities
Benxi Iron and Steel Warehouse and
250,917.43
Tendering Co., Ltd. ancillary facilities
Benxi Steel and Iron
Warehouse and
(Group) Equipment 217,960.00
ancillary facilities
Project Co., Ltd.
Notes of Financial Report Page 133
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
The Company as the lessee:
Amount incurred in the period Amount incurred in the prior period
Variable
Rental lease Rental
Variable
expense on paymen expense on
lease
short term ts not Interest Increa short term Interest Increa
payments
Type of leases and include expense on se in leases and expense on se in
Lessor not included
leased assets leases of low d in the Rent paid lease right- leases of Rent paid lease right-
in the
value assets measur liabilities of-use low value liabilities of-use
measureme
with a ement assumed assets assets with assumed assets
nt of lease
simplified of lease a simplified
liabilities
treatment liabilitie treatment
s
Land use
right
Benxi Steel & 7,669,068.17
27,716,930.8 39,000,108.0 55,251,233.3 39,600,209.2
Iron (Group) square meter,
8 0 9 8
Co., Ltd. land use right
42,920.00
square meter
2300 hot
Benxi Steel & rolling
16,098,161.0
Iron (Group) product line, 8,042,372.92 7,740,688.68 7,982,648.96
6
Co., Ltd. related real
estate
1780 hot
Benxi Beiying
rolling
Iron and 12,397,899.0
product line, 5,961,443.40 6,147,787.68
Steel (Group) 9
related real
Co., Ltd.
estate
Notes of Financial Report Page 134
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Amount incurred in the period Amount incurred in the prior period
Variable
Rental lease Rental
Variable
expense on paymen expense on
lease
short term ts not Interest Increa short term Interest Increa
payments
Type of leases and include expense on se in leases and expense on se in
Lessor not included
leased assets leases of low d in the Rent paid lease right- leases of Rent paid lease right-
in the
value assets measur liabilities of-use low value liabilities of-use
measureme
with a ement assumed assets assets with assumed assets
nt of lease
simplified of lease a simplified
liabilities
treatment liabilitie treatment
s
Bengang Land use right
Group Co., 728,282.30 4,886,077.60 2,449,918.80 9,945,423.08 2,666,923.92
Ltd. square meter
North
Hengda Office room
120,596.33
Logistics Co., property
Ltd.
Notes of Financial Report Page 135
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
3. Remuneration of key management personnel
Unit: RMB10,000
Item Amount incurred in Amount incurred in the prior
the period period
Remuneration of key management 427.09 335.63
personnel
(VI) Receivables and payables of related party
1. Receivables
Closing balance Opening balance
Item Related party Provision for Provision for
Book balance Book balance
bad debts bad debts
Ansteel Steel
Accounts Processing and
27,279,295.84 272,792.96
receivable Distribution
(Dalian) Co., Ltd
Ansteel Steel
Accounts
Company 30,314,005.82 303,140.06
receivable Limited.
Ansteel Group
Accounts Engineering
30,509.40 305.09
receivable Technology Co.,
Ltd
Accounts Ansteel Group
receivable Mining Co., Ltd
Anshan Steel
Accounts
Construction 4,154.16 41.54
receivable Group Co., Ltd
Ansteel Green
Accounts Resources
4,667,550.15 46,675.50
receivable Technology Co.,
Ltd
Ansteel Energy
Accounts
Technology Co., 283.53 2.84
receivable Ltd
Bensteel Group
Accounts International
854,482,902.28 29,419,309.19 663,311,074.79 6,633,110.75
receivable economic trading
Co., Ltd
Accounts Bensteel Group
1,246.09 12.46
receivable Co., Ltd
Accounts Benxi North iron
52,161,339.98 539,226.50
receivable industry Co., Ltd
Benxi Dongfeng
Lake iron and
Accounts
steel resources 1,129,130.33 11,291.30
receivable utilization Co.,
Ltd
Benxi Iron and
Steel (Group)
Accounts
Real Estate 269,832.53 244,698.20
receivable Development Co.,
Ltd
Accounts Benxi Iron and 5,954,675.29 10,700.06
Notes of Financial Report Page 136
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Closing balance Opening balance
Item Related party Provision for Provision for
Book balance Book balance
bad debts bad debts
receivable Steel (Group)
Construction Co.,
Ltd
Benxi Iron and
Steel (Group)
Accounts Mine
662,998.24 11,004.96
receivable Construction
Engineering Co.,
Ltd
Benxi Iron and
Steel (Group)
Accounts Mining mineral
88,983.85 889.84
receivable Resources
Development Co.,
Ltd
Benxi Iron and
Steel (Group)
Accounts
Mining Liaoyang 303,609.00 3,036.09
receivable Jiajiapu Iron Ore
Co., Ltd
Benxi Iron and
Steel (Group)
Accounts
mining Liaoyang 1,602,237.39 16,022.37
receivable Ma 'er Ling Pellet
Co., Ltd
Benxi Iron and
Accounts
Steel (Group) 43,742,238.95 437,422.39 500,000.00
receivable Mining Co., Ltd
Benxi Iron and
Steel (Group)
Accounts
thermal 14,206,508.48 122,217.47 840,398.67 8,403.99
receivable development Co.,
Ltd
Benxi Iron and
Steel (Group)
Accounts
Equipment 11,642,752.56 256,914.89
receivable Engineering Co.,
Ltd
Benxi Iron and
Steel (Group)
Accounts
Industrial 20,496,130.86 2,727.99
receivable development Co.,
Ltd
Benxi Iron and
Steel (Group)
Accounts
information 14,700.00 147.00
receivable automation Co.,
Ltd
Benxi Iron and
Accounts
Steel (Group) Co., 19,025,699.80 681,571.55
receivable Ltd
Benxi Xihu
Accounts
Metallurgical 13,216.40 132.16
receivable Charge Co., Ltd
Benxi Well
Surfacing
Accounts
Welding 191,720.22 16,994.63
receivable Manufacturing
Co., Ltd
Accounts Benxi New
49,497.48 55.28
receivable Business
Notes of Financial Report Page 137
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Closing balance Opening balance
Item Related party Provision for Provision for
Book balance Book balance
bad debts bad debts
Development Co.,
Ltd
Liaoning
Hengtong
Accounts Metallurgical
162,404,481.01 1,637,032.46 144,307.22 1,443.07
receivable Equipment
Manufacturing
Co., Ltd
Accounts Liaoning Slag
12,848.00 128.48
receivable Powder Co., Ltd
Ansteel Steel
Processing and
Accounts
Distribution 4,477,814.06 44,778.14
receivable (Zhengzhou) Co.,
Ltd
Ansteel Steel
Accounts
Distribution 248,775.35 2,487.75
receivable (Hefei) Co., Ltd
Benxi Iron and
Steel (Group)
Accounts
Thermal 1,984,761.29 19,847.61
receivable Development Co.,
Ltd
Ansteel Steel
Accounts
Distribution 8,113,115.19 81,131.15
receivable (Wuhan) Co., Ltd
Other
Ansteel Co., Ltd 95,781.27 46,061.89 421,142.66 421,142.66
receivables
Other Ansteel Group
6,706.00 67.06
receivables Co., Ltd
Saddle Capital
Other (Tianjin)
8,064,427.98 80,644.28
receivables Financial Leasing
Co., Ltd
Other North Hengda
1,000.00 - 65,563.55
receivables Logistics Co., Ltd
Bensteel Group
Other International
6,617.52 6,617.52 6,617.52
receivables economic trading
Co., Ltd
Other Bensteel Group
7,305.59 73.06
receivables Co., Ltd
Benxi Dongfeng
Lake iron and
Other
steel resources 3,478,250.07 23,340.75
receivables utilization Co.,
Ltd
Benxi Iron and
Steel (Group)
Other Electromechanical
receivables Installation
Engineering Co.,
Ltd
Benxi Iron and
Steel (Group)
Other
Machinery 1,061,981.67 106,198.17
receivables Manufacturing
Co., Ltd
Other Benxi Iron and 250,679.61 250,679.61 13,028,492.10 433,910.93
Notes of Financial Report Page 138
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Closing balance Opening balance
Item Related party Provision for Provision for
Book balance Book balance
bad debts bad debts
receivables Steel (Group)
Construction Co.,
Ltd
Benxi Iron and
Other
Steel (Group) 1,193,997.66 11,939.98
receivables Mining Co., Ltd
Benxi Iron and
Steel (Group)
Other
Thermal
receivables Development Co.,
Ltd
Benxi Iron and
Steel (Group)
Other
equipment 4,760,949.45 47,609.49
receivables Engineering Co.,
Ltd
Benxi Iron and
Steel (Group)
Other
Industrial 431,639.87 43,163.99
receivables development Co.,
Ltd
Benxi Iron and
Other
Steel (Group) Co., 7,413,860.80 4,561,714.36
receivables Ltd
Benxi New
Other Business
2,280,942.73 2,280,942.73
receivables Development Co.,
Ltd
Liaoning Hengtai
Other
heavy machine 3,545,583.40 35,455.83
receivables Co., Ltd
Benxi Iron and
Steel (Group)
Other
Real Estate 1,097,290.88 991,268.28
receivables Development Co.,
Ltd
Ansteel Heavy
Other Machinery Design
5,176,720.00 51,767.20
receivables and Research
Institute Co., Ltd
Liaoning
Hengtong
Other Metallurgical
144,307.22 1,443.07
receivables Equipment
Manufacturing
Co., Ltd
Other Bengang Electric
36,455.28 364.55
receivables Co., Ltd
Ansteel Group
Other Engineering
73,908.67 739.09
receivables Technology Co.,
Ltd
Other non-
current Ansteel Co. Ltd 7,305.45
assets
Other non- Ansteel Group
Engineering
current 14,517,451.17
Technology Co.,
assets Ltd
Other non- Ansteel Heavy 3,506,580.00
Notes of Financial Report Page 139
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Closing balance Opening balance
Item Related party Provision for Provision for
Book balance Book balance
bad debts bad debts
current Machinery Design
assets and Research
Institute Co., Ltd
Other non- Bensteel Gaoyuan
Industrial
current 542,400.00
Development Co.,
assets Ltd
Benxi Iron and
Other non- Steel (Group)
current Machinery 4,176.00
assets manufacturing
Co., Ltd
Other non- Benxi Iron and
Steel (Group)
current 22,094,076.34
construction Co.,
assets Ltd
Benxi Iron and
Other non- Steel (Group)
current Mine construction 3,155,429.08
assets Engineering Co.,
Ltd
Benxi Iron and
Other non- Steel (Group)
current Equipment 22,915,336.04
assets Engineering Co.,
Ltd
Benxi Iron and
Other non- Steel (Group)
current Industrial 833,139.38
assets Development Co.,
Ltd
Benxi Iron and
Other non- Steel (Group)
current information 16,042,420.95
assets automation Co.,
Ltd
Other non- Liaoning Hengtai
current heavy machine 263,473.40
assets Co., Ltd
Other non- Anshan Steel
current Construction 132,687.84
assets Group Co., Ltd
Ansteel Steel
Prepayments Company 882,482.46
Limited.
Ansteel Group
Engineering
Prepayments 6,774,166.05
Technology Co.,
Ltd
Ansteel Group
International
Prepayments 0.01 0.01
Economic trading
Co., Ltd
North Hengda
Prepayments 874,210.39
Logistics Co., Ltd
Bensteel Group
International
Prepayments 10,176,164.50 398,341,075.40
economic trading
Co., Ltd
Prepayments Benxi Beiying 1,119,904.00
Notes of Financial Report Page 140
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Closing balance Opening balance
Item Related party Provision for Provision for
Book balance Book balance
bad debts bad debts
Iron and Steel
Group Import and
export Co., Ltd
Benxi Iron and
Steel (Group)
Prepayments Machinery 49,429,296.57
manufacturing
Co., Ltd
Benxi Iron and
Steel (Group)
Prepayments equipment 3,162,173.15
Engineering Co.,
Ltd
Benxi Iron and
Steel (Group)
Prepayments information 1,075,365.83
automation Co.,
Ltd
Benxi New
Business
Prepayments 8,122,937.94 2,324,912.22
Development Co.,
Ltd
2. Payables
Item name Related party Closing balance Opening balance
Ansteel Electric Co.,
Accounts payable 170,418.08
Ltd
Ansteel Scrap
Accounts payable Resources (Anshan) 66,774,511.99 52,203,765.63
Co., Ltd .
Ansteel Steel
Processing and
Accounts payable Distribution 208,377.96
(Changchun) Co.,
Ltd .
Ansteel Steel Rope
Accounts payable 263,044.11 894,924.67
Co., Ltd
Accounts payable Ansteel Co., Ltd 145,476.64
Ansteel Group
Accounts payable Engineering 170,708.00
Technology Co., Ltd
Ansteel Group
International
Accounts payable 38,512,770.27
Economic Trade Co.,
Ltd .
Ansteel Group
Mining
Accounts payable 6,637,769.40
Gongchangling Co.,
Ltd
Ansteel energy
Accounts payable 132,150.38
technology Co., Ltd
Ansteel Industrial
Group (Anshan)
Accounts payable Equipment Operation 3,063,464.44
and Maintenance Co.,
Ltd .
Accounts payable Anshan Iron and Steel 2,198,235.32 2,265,928.00
Notes of Financial Report Page 141
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Item name Related party Closing balance Opening balance
Industry Group
Metallurgical
Machinery Co., Ltd
Ansteel heavy
Accounts payable 864,614.53 2,873,047.05
machinery Co., Ltd
Anshan iron and steel
metallurgy furnace
Accounts payable 5,954,131.61
material technology
Co., Ltd
North Hengda
Accounts payable 4,962,246.27
logistics Co., Ltd
Benxi Steel Stainless
Accounts payable Steel Cold Rolling 42,982.27
Dandong Co., Ltd
Benxi Iron and Steel
Accounts payable 2,903,896.45 1,893,516.67
Electric Co., Ltd
Benxi Iron and Steel
Gaoyuan Industrial
Accounts payable 1,125,249.71
Development Co.,
Ltd
Benxi Iron and Steel
Group International
Accounts payable 47,218,526.77 51,306,166.70
Economic Trade Co.,
Ltd .
Benxi Iron and Steel
Accounts payable 4,688,315.28 50,000.00
Group Co., Ltd
Benxi Aike hydraulic
Accounts payable 1,646,773.75
seal Co., Ltd
Benxi North Iron
Accounts payable 4,486,925.32
Industry Co., Ltd
Benxi Beiying Iron
Accounts payable and Steel (Group) 152,926,015.01 131,248,293.37
Co., Ltd .
Benxi Beiying Iron
and Steel Group
Accounts payable 225,141.59
Import and Export
Co., Ltd
Benxi Dongfeng Lake
Iron and Steel
Accounts payable 11,255,094.10
Resources Utilization
Co., Ltd
Benxi Iron and Steel
(Group) First
Accounts payable 108.90
architectural
engineering Co., Ltd .
Benxi Iron and Steel
(Group) Real Estate
Accounts payable 130,815.00 372,520.06
Development Co.,
Ltd .
Benxi Iron and Steel
Accounts payable (Group) Guomao 42,667,716.38
Tengda Co., Ltd .
Benxi Iron and Steel
(Group) Machinery
Accounts payable 2,228,869.19 2,874,934.49
Manufacturing Co.,
Ltd .
Benxi Iron and Steel
(Group) Construction
Accounts payable 264,705.62
Advanced Decoration
Co., Ltd .
Benxi Iron and Steel
Accounts payable (Group) Construction 35,954,925.98 240,928,491.19
Co., Ltd .
Notes of Financial Report Page 142
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Item name Related party Closing balance Opening balance
Benxi Iron and Steel
(Group) Mine
Accounts payable Construction 7,069,202.17
Engineering Co.,
Ltd .
Benxi Iron and Steel
(Group) Mining
Accounts payable 55,297,876.79
Liaoyang Maerling
Pellet Co., Ltd .
Benxi Iron and Steel
Accounts payable (Group) Mining Co., 71,864,074.04 45,768,605.27
Ltd .
Benxi Iron and Steel
(Group) Thermal
Accounts payable 281,092.78 413,463.33
Power Development
Co., Ltd .
Benxi Iron and Steel
(Group) Equipment
Accounts payable 47,480,851.11 87,111,368.27
Engineering Co.,
Ltd .
Benxi Iron and Steel
(Group) Industrial
Accounts payable 99,026,848.37 75,043,780.30
Development Co.,
Ltd .
Benxi Iron and Steel
Accounts payable (Group) Information 18,762,233.66 88,684,293.06
Automation Co., Ltd .
Benxi Iron and Steel
Accounts payable (Group) Metallurgical 250,593.53 47,468,411.05
Slag Co., Ltd .
Benxi Iron and Steel
Accounts payable 32,174,626.26 39,872,070.78
(Group) Co., Ltd .
Benxi Xihu
Accounts payable metallurgical burden 25,620,902.35
Co., Ltd
Benxi Weier
surfacing
Accounts payable 234,112.13
manufacturing Co.,
Ltd
Benxi new cause
Accounts payable 3,357,637.09 18,937.09
development Co., Ltd
Delin industrial
Accounts payable 9,685,683.68 9,556,739.82
products Co., Ltd
Delin dry port supply
Accounts payable 58,351.28
chain service Co., Ltd
Liaoning hengtai
Accounts payable heavy machinery Co., 18,098,769.50
Ltd
Liaoning hengtong
metallurgical
Accounts payable equipment 1,409,071.37 30,626,084.39
manufacturing Co.,
Ltd
Liaoning Lide IOT
Accounts payable 4,170,770.16
Co., Ltd
Liaoning
Metallurgical
Accounts payable 48,048.00 513,779.95
Vocational and
Technical College
Liaoning yitong
machinery
Accounts payable 2,127,118.28
manufacturing Co.,
Ltd
Notes of Financial Report Page 143
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Item name Related party Closing balance Opening balance
Shanxi products
Accounts payable international energy 91,859.97
Co., Ltd
Tianjin Bengang
Accounts payable Plate Processing and 7.25
Distribution Co., Ltd
Ansteel (Hangzhou)
Contract liabilities Automobile Material 299,035.59
Technology Co., Ltd .
Ansteel Steel
Processing and
Contract liabilities Distribution 5,370,495.95 695,012.13
(Changchun) Co.,
Ltd .
Ansteel Steel
Contract liabilities Distribution (Hefei) 3,050,349.68 4,731,954.99
Co., Ltd .
Contract liabilities Ansteel steel Co., Ltd 130,744.73
Ansteel chemical
Contract liabilities 6,485,543.83 3,631,726.76
technology Co., Ltd
Ansteel green
Contract liabilities resources technology 1,484,311.95
Co., Ltd
Ansteel energy
Contract liabilities 283.55 12,048.13
technology Co., Ltd
Anshan Iron and Steel
Heavy Machinery
Contract liabilities 23,079.79
Design and Research
Institute Co., Ltd
North Hengda
Contract liabilities 54,423,037.31 53,109,140.37
logistics Co., Ltd
Benxi Beiying Iron
Contract liabilities and Steel (Group) 1,579,294.00
Co., Ltd .
Benxi Dongfeng Lake
Iron and Steel
Contract liabilities 2,470,669.23
Resources Utilization
Co., Ltd
Benxi Iron and Steel
(Group) Machinery
Contract liabilities 177,026.55
Manufacturing Co.,
Ltd .
Benxi Iron and Steel
Contract liabilities (Group) Construction 5,898.81
Co., Ltd .
Benxi Iron and Steel
Contract liabilities (Group) Mining Co., 4,862,723.19
Ltd .
Benxi Iron and Steel
(Group) Thermal
Contract liabilities 4,487,918.73
Power Development
Co., Ltd .
Benxi Iron and Steel
(Group) Industrial
Contract liabilities 1,587,538.32 535,124.96
Development Co.,
Ltd .
Benxi Iron and Steel
Contract liabilities (Group) Information
Automation Co., Ltd .
Benxi Iron and Steel
Contract liabilities (Group) Metallurgical 0.02 1,044,047.73
Slag Co., Ltd .
Contract liabilities Benxi Xihu 20,000.00
Notes of Financial Report Page 144
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Item name Related party Closing balance Opening balance
metallurgical burden
Co., Ltd
Dalian Boluole Steel
Contract liabilities 3,221,292.56 1,776,832.88
Pipe Co., Ltd
Delin Dry Port
Contract liabilities Supply Chain Service 188,703,584.97 14,902,176.11
Co., Ltd
Guangzhou Ansteel
Contract liabilities Steel Processing Co., 1,067.17 644,213.74
Ltd
Liaoning Hengtong
Metallurgical
Contract liabilities Equipment 3,588,934.12
Manufacturing Co.,
Ltd
Liaoning
Metallurgical
Contract liabilities 0.01
Vocational and
Technical College
Panzhihua Iron and
Steel Group Jiangyou
Contract liabilities 1,779,438.17
Great Wall Special
Steel Co., Ltd
Tianjin Ansteel steel
Contract liabilities processing and 374,664.00
distribution Co., Ltd
Tianjin Ansteel
Contract liabilities International North 32,000,000.00
Trading Co., Ltd
Changchun FAW
Ansteel Steel
Contract liabilities 589,358.32 69,561.39
Processing and
Distribution Co., Ltd
Ansteel Steel
Processing and
Contract liabilities 2,468,274.66
Distribution (Dalian)
Co., Ltd .
CIMC Tongchuang
Contract liabilities (Zhejiang) Steel 80,484,269.96
Chain Co., Ltd .
Wuhan yuanhong
Contract liabilities 4,736,783.67
trading Co., Ltd
Ansteel (Liaoning)
Other payables Material Technology 390,000.00
Co., Ltd .
Ansteel Scrap
Other payables Resources (Anshan) 500,000.00 52,203,765.63
Co., Ltd .
Ansteel Group
Other payables Engineering 183,423,813.04 73,908.67
Technology Co., Ltd
Ansteel group Co.,
Other payables 1,635.00
Ltd
Ansteel Group
Other payables 1,283,900.00 3,565,330.00
Automation Co., Ltd
Ansteel construction
Other payables 6,676,229.55 132,687.84
group Co., Ltd
Ansteel metal
Other payables 10,000.00 10,000.00
structure Co., Ltd
Anshan Iron and Steel
Heavy Machinery
Other payables 50,000.00 5,176,720.00
Design and Research
Institute Co., Ltd
Notes of Financial Report Page 145
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Item name Related party Closing balance Opening balance
Ansteel heavy
Other payables 409,930.10 189,621.75
machinery Co., Ltd
Anshan Ansteel
Other payables international travel 245,460.00
agency Co., Ltd
Anshan iron and steel
metallurgy furnace
Other payables 50,000.00
material technology
Co., Ltd
North Hengda
Other payables 5,522,865.33 65,563.55
logistics Co., Ltd
Benxi Iron and Steel
Other payables 5,768,826.24 36,455.28
Electric Co., Ltd
Benxi Iron and Steel
Gaoyuan Industrial
Other payables 3,058,404.54
Development Co.,
Ltd
Benxi Iron and Steel
Group International
Other payables 44,960,728.47 663,311,074.79
Economic Trade Co.,
Ltd .
Benxi Iron and Steel
Other payables 903,375.93
Group Co., Ltd
Benxi aike hydraulic
Other payables 142,790.82
seal Co., Ltd
Benxi Beiying Iron
Other payables and Steel (Group) 40,103,767.22 3,100,000.00
Co., Ltd .
Benxi Steel (Group)
Other payables and Beijing Steel Co., 210,000.00
Ltd .
Benxi Dongfeng Lake
Iron and Steel
Other payables 950,878.70
Resources Utilization
Co., Ltd
Benxi Iron and Steel
(Group) No.3
Other payables 381,280.45
architectural
engineering Co., Ltd .
Benxi Iron and Steel
(Group) First
Other payables 1,999,087.29
architectural
engineering Co., Ltd .
Benxi Iron and Steel
(Group) Engineering
Other payables 49,429,296.57
Construction
Supervision Co., Ltd .
Benxi Iron and Steel
(Group) Machinery
Other payables 75,000.00
Manufacturing Co.,
Ltd .
Benxi Iron and Steel
Other payables (Group) Inspection 265,274.55
and Testing Co., Ltd .
Benxi Iron and Steel
(Group) Construction
Other payables 186,939,097.90 13,028,492.10
Advanced Decoration
Co., Ltd .
Benxi Iron and Steel
Other payables (Group) Construction 36,371,606.19
Co., Ltd .
Benxi Iron and Steel
Other payables (Group) Mine 318.66
Construction
Notes of Financial Report Page 146
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Item name Related party Closing balance Opening balance
Engineering Co.,
Ltd .
Benxi Iron and Steel
(Group) Road and
Other payables Bridge Construction 2,070,400.72 840,398.67
Engineering Co.,
Ltd .
Benxi Iron and Steel
(Group) Thermal
Other payables 293,195,637.86 4,760,949.45
Power Development
Co., Ltd .
Benxi Iron and Steel
(Group) Equipment
Other payables 4,078,753.90 10,191,802.55
Engineering Co.,
Ltd .
Benxi Iron and Steel
(Group) Industrial
Other payables 54,062,361.00 1,150,225.42
Development Co.,
Ltd .
Benxi Iron and Steel
Other payables (Group) Information 13,372,608.70
Automation Co., Ltd .
Benxi Iron and Steel
Other payables 200,000.00
(Group) Co., Ltd .
Benxi Xihu
Other payables metallurgical burden 15,131,176.03 2,324,912.22
Co., Ltd
Benxi New Cause
Other payables Development Co., 20,000.00 450,952.17
Ltd
Dalian Boluole steel
Other payables 943,215.92 9,556,739.82
pipe Co., Ltd
Delin industrial
Other payables 6,941,075.21 13,619,388.23
products Co., Ltd
Liaoning hengtai
Other payables heavy machinery Co., 20,000.00 144,307.22
Ltd
Liaoning hengtong
metallurgical
Other payables equipment 2,229,204.00
manufacturing Co.,
Ltd
Liaoning
Other payables Metallurgical 707,260.00 528,854.07
Technician College
Liaoning
Metallurgical
Other payables 30,396.50
Vocational and
Technical College
Liaoning Yitong
Machinery
Other payables 1,001,991.58
Manufacturing Co.,
Ltd
Pansteel Group
Engineering
Other payables 523,642.00
Engineering
Consulting Co., Ltd
Ansteel Electric Co.,
Other payables 345,269.90
Ltd
Liaoning Jinsuoju
Other payables Material Technology 543,412.47
Co., Ltd
Notes of Financial Report Page 147
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(VII) Centralized management of funds
1. The main contents of the centralized management of funds that the Company
participates in and implements are as follows:
In December 2021, after negotiation with Ansteel Group Finance Co., Ltd.
(hereinafter referred to as Ansteel Finance Company), the Financial Services
Agreement (2022-2024) was signed to stipulate 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. According to the agreement, in the next 12 months, the maximum daily
deposit balance of the Company and its holding subsidiaries in Ansteel Finance
Company is 4.5 billion yuan, the maximum credit limit for loans, bills and other
forms is 5 billion yuan, and the maximum entrusted loan provided by Ansteel
Finance Company to the Company is RMB2 billion .
In December 2021, after negotiation with Ansteel Group Finance Co., Ltd.
(hereinafter referred to as Ansteel Finance Company), the Financial Services
Agreement (2022-2024) was signed to agree on the relevant financial business
terms and amount cap of related transactions between the Company and its
subsidiaries and Ansteel Finance Company in 2022, 2023, and 2024. The agreement
stipulates that the maximum daily deposit balance of the Company and its holding
subsidiaries in Ansteel Finance Company in the next twelve months is RMB 4.5
billion, the maximum credit limit of loans, bills and other forms is RMB 5 billion, and
Ansteel Finance Company provides entrusted loans to the Company. The maximum
limit is RMB 2 billion.
2. Funds of the Company centralized to the Group
Funds that are not centralized to Group parent company and directly deposited into
financial company.
Closing balance Opening balance
Item name Provision for Provision for
Book balance Book balance
bad debts bad debts
Cash and cash
391,377,566.87 1,074,918,531.75
equivalents (Deposited
Notes of Financial Report Page 148
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Closing balance Opening balance
Item name Provision for Provision for
Book balance Book balance
bad debts bad debts
into Ansteel Group
Financial Co., Ltd. )
Total 391,377,566.87 1,074,918,531.75
Including: Funds with
restricted withdrawal
due to fund centralized
management
XI. Commitments and Contingencies
(I) Significant commitments
1. Significant commitments at the balance sheet date
(1) According to the Land Use Right Leasing Contract and subsequent
supplementary agreements signed by the Company and Benxi Steel (Group) on April
7th, 1997, and December 30th, 2005, the Company leased land from Benxi Steel
(Group). The monthly rent is RMB 0.594 per square meter, the leased land area is
7,669,068.17 square meters, and the annual rent is RMB 54,665,100.
(2) On August 14th , 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 31st, 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 and RMB
18 million 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 15th, 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 42,920.00 square meters and
728,282.30 square meters respectively, with a lease term of 20 years, and a rental
price of RMB 1.138 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
Notes of Financial Report Page 149
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
has been reviewed and approved at the third meeting of the eighth Board of
Directors of the Company.
(4) As at December 31st, 2023, the amount of irrevocable letter of credit that was
not fulfilled was RMB 1.3 billion.
(II) Contingencies
As at December 31st, 2023, it also should be stated that the Company has no
significant contingencies that are required to be disclosed
XII. Events after the balance sheet date
On April 20th , 2024, the Company published Bengang Steel Plates Co., Ltd. Process
Announcement on Great Assets Replacement and Related Transactions. The
Company intends to conduct assets replacement with the controlling shareholder—
Benxi Iron&Steel (Group) Co., Ltd. (hereinafter referred to as Benxi Iron&Steel). The
assets intended to be purchased is 100% stock rights of Benxi Iron&Steel (Group)
Mining Industry Co., Ltd; The assets intended to be sold are all assets and liabilities
other than retained assets and liabilities of listed company. The difference between
assets intended to be purchased and assets intended to be sold shall be
compensated in cash by one party to the other. Currently, elements such as the
scope of specific underlying assets and trading prices still need further argument
and communication. Essential decisions and approval procedures shall be
conducted according to relevant laws, regulations and articles of associations.
Significant uncertainties of relevant events still remain.
XIII. Other significant events
(I) Significant prior error correction
None.
(II) Significant debt restructuring
Notes of Financial Report Page 150
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Confirm
Ratio of ation
Capital Conting
Investme the measur
stock ent
Book value Confirmed nt investm e and
Way of increase payable
of the gain/loss increase ent in source
debt caused by /Contin
Item original from debt caused by total for fair
restructuri debt gent
restructuri restructuri debt share of value
ng turning receiva
ng debt ng turning the during
into ble
into stock debtor debt
capatal
(%) restruct
uring
Settlement
of debts by
Accou cash the
nts value is 15,944,424. 5,179,346.8
payabl less than 62 9
e the book
value of
the debts
15,944,424. 5,179,346.8
Total
62 9
Notes of Financial Report Page 151
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(III) Segment information
Since the Company's main product is steel, other products have a small proportion of sales,
the main production base is in Liaoning, and the disclosure of the segment report is not
applicable.
XIV. Notes to the financial statements of parent company
(I) Accounts receivable
1. Accounts receivable disclosed by aging
Year end balance for last
Aging Closing balance
year
Within 1 year 719,865,861.39 924,570,849.45
1-2 years 561,695,759.42 14,717,227.92
2-3 years 647,190.77 1,087,625.52
3-4 years 845,982.97 1,579,610.23
4-5 years 503,056.19 16,776,684.51
Over 5 years 98,702,147.96 135,116,794.18
Subtotal 1,382,259,998.70 1,093,848,791.81
Less: Provision for bad debts 138,933,196.14 162,812,995.23
Total 1243,326,802.56 931,035,796.58
Notes of Financial Report Page 152
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
2. Accounts receivable disclosed by bad debt provision
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category Proportion Proportion
Proportion Book value Proportion Book value
Amount Amount accrued Account Account accrued
（%） (%)
（%） （%）
Provision for
bad debts
made on an 48,196,244.68 3.49 48,196,244.68 100.00 48,196,244.68 4.41 48,196,244.68 100.00
individual
basis
Provision for
bad debts by
the portfolio 1,334,063,754.02 96.51 90,736,951.46 6.80 1,243,326,802.56 1,045,652,547.13 95.59 114,616,750.55 10.96 931,035,796.58
of credit risk
characteristics:
Including:
Aging portfolio 1,021,248,997.51 73.88 90,736,951.46 8.88 930,512,046.05 886,147,539.07 81.01 114,616,750.55 771,530,788.52
Associates
312,814,756.51 22.63 312,814,756.51 159,505,008.06 159,505,008.06
portfolio
Total 1,382,259,998.70 100.00 138,933,196.14 1,243,326,802.56 1,093,848,791.81 100.00 162,812,995.23 931,035,796.58
Notes of Financial Report Page 153
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Significant accounts receivable whose provision for bad debts was made on an
individual basis：
Closing balance Opening balance
Accrual
Name Provision for Accrual Provision for
Book balance basis Book balance
bad debt basis bad debt
(%)
Benxi
Nanfen
Xinhe
Metallurgical 48,196,244.68 48,196,244.68 100.00 48,196,244.68 48,196,244.68
Furnace
Material Co.,
Ltd.
Total 48,196,244.68 48,196,244.68 48,196,244.68 48,196,244.68
Provision for bad debt by portfolio of credit risk characteristics:
Portfolio accrual item: Aging portfolio
Closing balance
Item
Accounts receivable Provition for bad debt Accrual ratio（%）
Within 1 year
645,801,283.97 6,458,012.84 1.00
(inclusive)
1 to 2 years
322,945,580.33 32,294,558.03 10.00
(inclusive)
2 to 3 years
647,190.77 129,438.15 20.00
(inclusive)
3 to 4 years
845,982.97 845,982.97 100.00
(inclusive)
4 to 5 years
503,056.19 503,056.19 100.00
(inclusive)
Over 5 years 50,505,903.28 50,505,903.28 100.00
Total 1,021,248,997.51 90,736,951.46
3. Provision for bad debts accrued, recovered or reversed in the current period
Amount of change in the current period
Opening Recovery
Category Other Closing balance
balance Accrual or Write-off
changes
reversal
Provision
for bad
-
debts on 162,812,995.23 1,447,761.08 138,933,196.14
22,432,038.01
accounts
receivable
-
Total 162,812,995.23 1,447,761.08 138,933,196.14
22,432,038.01
Of which the amount of provision for bad debts recovered or reversed in the current
period is material: None.
Notes of Financial Report Page 154
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
4. Actual write-off of accounts receivable in the current period
Item Write-off amount
Actual write-off of accounts receivable 1,447,761.08
Of which significant write-offs of accounts receivable:
Whether the
Nature of Write-off
Name of the Write-off Reasons for amount arises
payment procedures
company amount write-off from related
receivable performed
transactions
Legal advice
Jining Forging Payment for and working
461,229.33 Cancelled No
Center good conference
minute
A suspended
company that
is unreachable
Xuzhou
for a long
Jinshanqiao
time without Legal advice
Development
Payment for business and working
Zone Yong'an 200,265.48 否
goods transactions conference
Metal
and included minute
Material
in the
Corporation
management
of account
write-offs
Shanghai
Legal advice
Bengang
Payment for and working
Industry and 193,625.29 Cancelled No
goods conference
Trade
minute
Company
A suspended
company that
is unreachable
ORDINS
for a long
Northeast
time without Legal advice
Company
Payment for business and working
Fushun 155,616.74 No
goods transactions conference
Technology
and included minute
and Trade
in the
Center
management
of account
write-offs
Tonghua iegal advice
Machinery Payment for and working
141,139.39 Cancelled No
Factory for goods conference
Grain and Oils minute
Bengang iegal advice
Yantai Payment for and working
138,378.96 Cancelled No
Marketing goods conference
Co., Ltd minute
Shandong A suspended iegal advice
Payment for
Zhucheng 87,085.43 company that and working No
goods
Industrial is unreachable conference
Notes of Financial Report Page 155
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Whether the
Nature of Write-off
Name of the Write-off Reasons for amount arises
payment procedures
company amount write-off from related
receivable performed
transactions
Supply and for a long minute
Marketing time without
Company business
transactions
and included
in the
management
of account
write-offs
Tieling Jinlong
Sale Agency iegal advice
for Petroleum Payment for and working
24,608.99 Cancelled No
Pipeline goods conference
Mechanical minute
Products
Shenzhen
iegal advice
Zhongtianda
Payment for and working
Product 20,441.96 Cancelled No
goods conference
Industry and
minute
Trade Co., Ltd.
A suspended
company that
is unreachable
for a long
time without Legal advice
Benxi Steel
Payment for business and working
Material Sale 7,167.87 No
goods transactions conference
Agency
and included minute
in the
management
of account
write-offs
Shunde Legal advice
Xiqiangsheng Payment for and working
6,997.93 Cancelled No
Mould Co., goods conference
Ltd. minute
Heilongjiang
Legal advice
Hua'an
Payment for and working
Industry 5,637.27 Cancelled No
goods conference
Group
minute
Corporation
Guagdong
Zhaoqing
Construction
Legal advice
Materials and
Payment for and working
Minerial 5,566.44 Cancelled No
goods conference
Product
minute
Company for
Township
Enterprises
Total 1,447,761.08
5. Accounts receivable of the top five closing balances collected by arrears and
contract assets
Notes of Financial Report Page 156
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Closing
balance of
Percentage
bad debt
of total
provision for
Closing Closing balance closing
Closing balance accounts
Name of the balance of of accounts balance of
of accounts receivable
company contract receivable and accounts
receivable and provision
assets contract assets receivale and
for
contract
impairment
assets (%)
for contract
assets
Bengang
Group
International 483,565,406.67 483,565,406.67 34.98 29,419,309.19
Economy and
Trade Co., Ltd
Liaoning
Hengtong
Metallurgical
162,404,481.01 162,404,481.01 11.75 1,637,032.46
Equipment
Manufacturing
Co., Ltd
Liaoning Benxi
North Coal
79,511,150.05 79,511,150.05 5.75 795,111.50
Chemical Co.,
Ltd.
Benxi North
Iron Industy 52,161,339.98 52,161,339.98 3.77 519,656.39
Co., Ltd.
Bengang
Refractory
48,494,971.80 48,494,971.80 3.51 2,928,250.41
Materials Co.,
Ltd.
Total 826,137,349.51 826,137,349.51 59.77 35,299,359.95
(II) Other receivables
Item Closing balance Opening balance
Interest receivable
Dividends receivable 260,000,000.00
Other receivables 344,535,173.18 150,724,545.56
Total 604,535,173.18 150,724,545.56
1. Dividends receivable
(1) Details of dividends receivable
Item (Or investees) Closing balance Opening balance
Changchun Bengang Steel Sales Co.,
43,000,000.00
Ltd.
Shenyang Bengang Metallurgical
30,000,000.00
Technology Co., Ltd.
Notes of Financial Report Page 157
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Item (Or investees) Closing balance Opening balance
Tianjin Bengang Steel Trading Co., Ltd. 47,000,000.00
Shanghai Bengang Metallurgical
15,000,000.00
Technology Co., Ltd.
Yantai Bengang Steel Sales Co., Ltd. 25,000,000.00
Guangzhou Bengang Steel Trading Co.,
100,000,000.00
Ltd.
Subtotal 260,000,000.00
Less: Provision for bad debts
Total 260,000,000.00
(2) Aging of significant dividends receivable over one year
None.
2. Other receivables
(1) Disclosure by aging
Aging Closing balance Opening balance
Within 1 year 284,052,848.38 89,160,291.73
1 to 2 years 35,230,832.41 58,187,051.40
2 to 3 years 33,345,904.56 3,519,908.21
3 to 4 years 3,125,628.24 573,902.12
4 to 5 years 229,028.24 10,488,624.67
Over 5 years 60,748,068.66 52,197,648.78
Subtotal 416,732,310.49 214,127,426.91
Less: Provision for bad debts 72,197,137.31 63,402,881.35
Total 344,535,173.18 150,724,545.56
Notes of Financial Report Page 158
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(2) Classification and disclosure of other receivables by nature of payment
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Accrual Accrual
Percentage Book value Percentage Book value
Amount Amount ratio Amount Amount ratio
（%） （%）
（%） （%）
Bad debt
provision is
made on an 15,752,285.66 3.78 15,752,285.66 100.00 15,031,598.34 7.02 15,031,598.34 100.00
individual
basis
Bad debt
provision is
400,980,024.83 96.22 56,444,851.65 14.08 344,535,173.18 199,095,828.57 92.98 48,371,283.01 24.30 150,724,545.56
made on a
portfolio basis
Including:
Aging
373,617,582.97 89.65 56,444,851.65 15.11 317,172,731.32 136,339,409.35 63.67 48,371,283.01 35.48 87,968,126.34
portfolio
Other
27,362,441.86 6.57 27,362,441.86 62,756,419.22 29.31 62,756,419.22
portfolio
Total 416,732,310.49 100.00 72,197,137.31 344,535,173.18 214,127,426.91 100.00 63,402,881.35 150,724,545.56
Notes of Financial Report Page 159
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Significant other receivables whose provision for bad debts was made on an
individual basis：
Closing balance
Name Provision for Accrual ratio
Book value Accrual basis
bad debt （%）
Benxi Iron and Steel (Group) No.
Off
3 Architectural Engineering Co., 12,504,978.59 12,504,978.59 100.00
production
Ltd.
Benxi Iron and Steel (Group) No.
Bankruptcy
1 Architectural Engineering Co., 3,247,307.07 3,247,307.07 100.00
reorganization
Ltd.
Total 15,752,285.66 15,752,285.66
Provision for bad debt by portfolio of credit risk characteristics:
Portfolio accrual item: Aging portfolio
Closing balance
Item
Other receivables Bad debt privision Accrual ratio（%）
Within 1 year
283,957,535.20 2,839,575.35 1.00
(inclusive)
1 to 2 years (inclusive) 35,230,832.41 3,523,083.24 10.00
2 to 3 years (inclusive) 5,433,777.88 1,086,755.58 20.00
3 to 4 years (inclusive) 3,125,628.24 3,125,628.24 100.00
4 to 5 years (inclusive) 229,028.24 229,028.24 100.00
Over 5 years 45,640,781.00 45,640,781.00 100.00
Total 373,617,582.97 56,444,851.65
(3) Provision for bad debts
Stage 1 Stage 2 Stage 3
Expected credit
Expected credit
Expected credit losses over the
Bad debt provision losses over the Total
losses for the entire life
entire life (Not
next 12 months (Credit-
credit-impaired)
impaired)
Opening balance 801,060.44 1,353,672.38 61,248,148.53 63,402,881.35
Opening balance in the
-3,523,083.24 397,455.00 3,125,628.24
current period
--Transfer to stage 2 -3,523,083.24 3,523,083.24
--Transfer to stage 3 -3,125,628.24 3,125,628.24
--Tranfer back to stage
2
--Transfer back to stage
1
Accrual in the current
5,561,598.15 2,858,711.44 1,181,861.96 9,602,171.55
period
Transferring back in the
current period
Charge-off in the
current period
Write-off in the current -807,915.59 -807,915.59
Notes of Financial Report Page 160
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Stage 1 Stage 2 Stage 3
Expected credit
Expected credit
Expected credit losses over the
Bad debt provision losses over the Total
losses for the entire life
entire life (Not
next 12 months (Credit-
credit-impaired)
impaired)
period
Other changes
Ckosing balance 2,839,575.35 4,609,838.82 64,747,723.14 72,197,137.31
(4) Provision for bad debts accrued, recovered or reversed in the current period
Amount of change in the current period
Opening Recovery Closing
Category Charge off Other
balance Accrual or balance
or write off change
reversal
Bad debt
provision
63,402,881.35 9,602,171.55 807,915.59 72,197,137.31
for other
receivables
Total 63,402,881.35 9,602,171.55 807,915.59 72,197,137.31
Of which conversion of bad debt provision or significant amounts recovered: None.
(5) Actual write-off of other receivables in the current period
Item Write-off amount
Write-off of other receivables 807,915.59
Of which significant write-offs of other receivables:
Whether the
Nature of Write-off
Name of the Write-off Reasons for amount arises
other procedures
company amount write-off from related
receivables performed
transactions
A suspended
company that
is unreachable
for a long
Beijing time without Legal advice
Remained
Bengang business and minute of
payment to 807,915.59 No
materials transactions office
be cleared
sales center and included conference
in the
management
of account
write-offs
Total 807,915.59
(6) Classification of other receivables by nature of payment
Notes of Financial Report Page 161
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
Nature of payment Closing book balance Opening book balance
Compensation of "Life show
212,242,400.00
belt" Project
Amount current 198,934,209.00 205,620,987.47
Others 5,555,701.49 8,506,439.44
Total 416,732,310.49 214,127,426.91
(7) Other receivables of the top five closing balances collected by arrears
Percentage
of total
Closing
Name of the Nature of the closing
Closing balance Aging balance of bad
company payment balance of
debt provision
prepayments
(%)
Compensation
Benxi Xihu District Within
of "Life show 212,242,400.00 50.93 2,122,424.00
Government 1 year
belt" Project
Benxi Iron and
2 to 3
Steel (Group) Third
Amount years;
construction 12,504,978.59 3.17 12,504,978.59
current Over 5
Engineering Co.,
Ltd years
Within
Benxi Iron and 1
Amount
Steel (Group) Co., 5,466,371.64 year; 1.31 4,025,426.64
Ltd. current Over 5
years
Liaoning Hengtai
Amount Within
Heavy Machinery 3,545,583.40 0.85 35,455.83
current 1 year
Co., Ltd.
Liaoning Huawei
Amount Over 5
Coal Preparation 2,261,360.00 0.54 2,261,360.00
current years
Co., Ltd.
Total 236,020,693.63 56.63 20,949,645.06
(III) Long-term equity investments
Closing balance Opening balance
Provision Provision
Item
Book balance for Book value Book balance for Book value
impairment impairment
Investments
in 2,222,281,590.24 2,222,281,590.24 2,222,281,590.24 2,222,281,590.24
subsidiaries
Investments
in joint
ventures 46,910,346.41 46,910,346.41 47,996,314.61 47,996,314.61
and
associates
Total 2,269,191,936.65 2,269,191,936.65 2,270,277,904.85 2,270,277,904.85
Notes of Financial Report Page 162
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
1. Investments in subsidiaries
Changes in the period
Accrual of
Opening balance of provision for Closing balance of
Investee Opening balance provision for Additional Reduced Closing balance provision for
impairment investments investments
impairment in others
impairment
the current
period
Shanghai Bengang
Metallurgical 229,936,718.57 229,936,718.57
Technology Co., Ltd.
Benxi Bengang Steel
& Iron Sales Co., 30,000,000.00 30,000,000.00
Ltd.
Bengang POSCO
Cold-rolled Sheet 1,019,781,571.10 1,019,781,571.10
Co., Ltd.
Tianjin Bengang
230,318,095.80 230,318,095.80
Steel Trade Co., Ltd.
Changchun Bengang
28,144,875.36 28,144,875.36
Steel Sales Co., Ltd.
Yantai Bengang
219,100,329.41 219,100,329.41
Steel Sales Co., Ltd.
Guangzhou Bengang
Steel & Iron Trading 200,000,000.00 200,000,000.00
Co., Ltd.
Dalian Benruitong
Automobile
65,000,000.00 65,000,000.00
Material Technology
Co., Ltd
Shenyang Bengang
Metallurgy Science
200,000,000.00 200,000,000.00
and Technology Co.,
Ltd
Total 2,222,281,590.24 2,222,281,590.24
Notes of Financial Report Page 163
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
2. Investments in joint ventures and associates
Changes in the period
Opening Investment Closing
Adjustment to Declaration Accrualof
Opening balance of income Other Closing balance of
Investee Additional Reduced other of cash provision
balance provision for recognized equity Others balance provision for
investments investments comprehensive dividend or for
impairment under equity changes impairment
income profit impairment
method
1．Joint
ventures
Subtotal
2．Associates
Benxi Iron
and Steel
Baojin
(Shenyang)
47,996,314.61 -1,085,968.20 46,910,346.41
Automobile
New Material
Technology
Co., Ltd.
Subtotal 47,996,314.61 -1,085,968.20 46,910,346.41
Total 47,996,314.61 -1,085,968.20 46,910,346.41
Notes of Financial Report Page 164
Bengang Steel Plates Co., Ltd.
FY 2023
Notes of Financial Report
(IV) Operating income and operating cost
1. Details of business income and business cost
Amount incurred in the period Amount incurred in the prior period
Item
Income Icost Income cost
Main business 56,614,035,827.20 57,748,112,204.90 58,937,350,684.09 59,090,024,551.87
Other
1,572,946,304.56 1,545,382,455.23 4,144,406,405.05 4,075,230,315.93
businesses
Total 58,186,982,131.76 59,293,494,660.13 63,081,757,089.14 63,165,254,867.80
2. Information relating to income
Income from main Cost from main Income from Cost from other
Category
business business other business business
Classification by
business regions
Including: 51,194,812,008.07 1,545,382,455.23
50,055,418,101.64 1,572,946,304.56
Domestic
Oversea 6,558,617,725.56 6,553,300,196.83
Total 56,614,035,827.20 57,748,112,204.90 1,572,946,304.56 1,545,382,455.23
Classification by
commodity
alienation time:
Confirmation at 57,748,112,204.90 1,545,382,455.23
56,614,035,827.20 1,570,447,976.75
some point
Confirmation in
2,498,327.81
some period
Total 56,614,035,827.20 57,748,112,204.90 1,572,946,304.56 1,545,382,455.23
(V) Investment income
Amount incurred in Amount incurred
Item
the period in the prior period
Long-term equity investment income calculated by cost
464,123,512.41
method
Long-term equity investment income calculated by
-1,085,968.20 -580,788.56
equity methoddividends receivable
Investment income from disposal of long-term equity
263,652,271.12
investment
Investment income from disposal of transactional
-6,558,780.75
financial assets
Investment income from debt restructuring 5,179,346.89 1,243,883.36
Others -6,626,340.44 2,879,850.07
Total 461,590,550.66 260,636,435.24
Notes of Financial Report Page 165
Bengang Steel Plates Co., Ltd. 2023 Annual Report
XV. Supplementary information
(I) Details of non-recurring profit and loss for the period
Item Amount Note
Profit or loss on the disposal of non-current assets, including
298,940,955.41
the write-off part of the provision for impairment of assets
Government grants included to current profit or loss (except
those closely related to the Company's normal business
operations, which are in line with national policies and are 79,554,896.45
enjoyed on an ongoing basis at a fixed or quantitative rate in
accordance with certain standards)
Except for the effective hedging business related to the
normal operation of the Company, the gains and losses from
changes in fair value arising from the holding of financial
assets and financial liabilities by non-financial enterprises
and the gains and losses arising from the disposal of
financial assets and financial liabilities
Capital occupation expense charged to non-financial
enterprises included in current profits and losses
Profit and loss of entrusting others to invest or manage
-6,626,340.44
assets
Profits and losses from entrusted loans to foreign countries
Loss of assets due to force majeure factors, such as natural
disasters
Reversal of impairment provision for receivables separately
tested for impairment
The cost of acquiring investment in subsidiaries, joint
ventures and joint ventures is less than the income
generated by the fair value of the identifiable net Assets of
the invested entity when the enterprise acquires the
investment
Current net profit and loss of subsidiaries from the
beginning of the period to the merger date arising from the
merger of enterprises under the same control
Exchange gains and losses of non-monetary assets
Profit and loss of debt restructuring 5,179,346.89
One-time expenses incurred by an enterprise due to the
non-continuation of related business activities, such as
expenses for resettling employees, etc.
One-time impact on current profits and losses due to the
adjustment of laws and regulations such as taxation and
accounting
Share-based payment fees confirmed at one time due to
cancellation or modification of equity incentive plan
For cash-settled share-based payment, the profit and loss
arising from the change of fair value of salary payable to
employees after the feasible right date
Profit and loss arising from changes in fair value of
investment real estate measured by fair value model
Income from transactions where the transaction price is
obviously unfair
Profit and loss arising from contingencies unrelated to the
normal operation of the company
Custody fee income obtained from entrusted operation
Other non-operating income and expenses other than the
-51,663,946.71
above items
Other profit and loss items that meet the definition of non-
recurring profit and loss
Subtotal 325,384,911.60
166
Bengang Steel Plates Co., Ltd. 2023 Annual Report
Item Amount Note
Income tax impact 327,320.42
Impact amount of minority shareholders' equity (after tax) -143,533.59
Total 325,201,124.77
(II) Return on equity and earnings per share
Earnings per share（RMB）
Weighted average
Profit for the reporting period Basic earnings per Diluted earnings
return on equity（%）
share per share
Net profit attributable to ordinary
-9.73 -0.424 -0.424
shareholders of the Company
Net profit after non-recurring profit and loss
attributable to ordinary shareholders of the -11.65 -0.503 -0.503
Company
Note: Assuming that the convertible bonds of the Company are converted into ordinary shares, the
number of ordinary shares issued in the current period will increase by 1,425,575,721.52 shares, and the
net profit will increase by 224,088,328.99 yuan, thus increasing the earnings per share by 0.157
yuan/share, indicating that the potential ordinary shares are not diluted, but anti-diluted, so they will not
be considered in calculating diluted earnings per share. Diluted earnings per share is determined according
to basic earnings per share.
Bengang Steel Plates Co., Ltd.
（Official Seal）
April 25 t h , 2024
167