Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Bengang Steel Plates Co., Ltd.
Interim Report 2014
August 2014
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Chapter I. Important Prompts, Table of Contents, and Definitions
The Board of Directors, the Supervisory Committee, the directors, the supervisors, and executives of the
Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the
Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of
the Report.
All of the directors attended the board meeting on which this report was examined.
The Company will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the
report period.
Mr.Wang Shu – the responsible person of the Company, Mr. Han Ge – the CFO, and Mr. Wang Shaoyu – the
accounting manager declares: the truthfulness, accuracy, and completeness of the financial report in the Interim
Report are guaranteed.
This report is prepared both in Chinese and English. The Chinese version shall prevail should there is any conflict
in presentation.
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Table of Contents
Chapter I. Important Prompts, Table of Contents, and Definitions ..........................................................................................................2
Chapter II. Company Profile....................................................................................................................................................................5
Chapter III. Financial Highlights .............................................................................................................................................................7
Chapter IV. Board of Directors Report ...................................................................................................................................................9
Chapter V. Significant Events .............................................................................................................................................................15
Chapter VI. Change of Share Equity and Shareholders .........................................................................................................................22
Chapter VII. Particulars about Preference Shares ..................................................................................................................................25
Chapter VIII. Particulars about the Directors, Supervisors and Senior Executives ...............................................................................26
Chapter IX. Financial Report.................................................................................................................................................................27
Chapter X. Documents For Reference ..............................................................................................................................................129
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Glossary
Terms Defined as Description
Bengang Bancai, Bengang Steel, the Company, the
Defined as Bengang Steel Plates Co., Ltd.
Listed Company
Bengang Group, the Group Defined as Bengang Group Co., Ltd.
Bengang Co. Defined as Benxi Steel (Group) Co., Ltd.
Liaoning State-owned Asset Supervisory and Management
Liaoning Provincial State-asset Administration Defined as
Committee
SSE Defined as Shenzhen Stock Exchange
Bengang Puxiang Defined as Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd.
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Chapter II. Company Profile
I. Company profile
Stock ID Bengang Bancai, Bengangban B Stock Code 000761、200761
Stock Exchange Listed in Shenzhen Stock Exchange
Company Name in Chinese Bengang Steel Plates Co., Ltd.
Abbreviation in Chinese (if any) Bengang Bancai
Company Name in English BENGANG STEEL PLATES CO.,LTD.
Short form of Company Name in English BSP
Legal representative: Wang Shu
II. Contacts
Secretary of the Board Representative of Stock Affairs
Name Zhang Jichen Tong Weigang
No.16, Renmin Road, Pingshan District, Benxi City, Liaoning No.16, Renmin Road, Pingshan District, Benxi City,
Address
Province Liaoning Province
Tel. 47828360 47827003
Fax. 47824158 47827004
Email. bgbczjc761@126.com bgbc761@126.com
III. Other info.
1. Contacts
Any change to the registered address, office address, postal code, official website, and email address of the Company
[] Applicable; [V] Not applicable
No change to the registered address, office address, postal code, official website, and email address of the Company. For details
please find the Annual Report 2013.
2. Information inquiry
Whether the place for information enquiry has been changed in the report term
[] Applicable; [V] Not applicable
None of the official presses, website, and place of enquiry has been changed in the report period. For details please find the Annual
Report 2013.
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
3. Change of business registration
Whether the business registration has been changed in the report period
[] Applicable; [V] Not applicable
None of the registration date and place, the license number, tax number, organization number has been changed in the report period.
For details please find Annual Report 2012.
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Chapter III. Financial Highlights
I. Main accounting data and indices
Are there any retrospective adjustment or restatement of financial information of previous year due to change of accounting policies
or correcting of accounting errors
[V] Yes[] No
Same period last year Increase/decrease (%)
This report term
Not adjusted Adjusted Adjusted
Turnover (RMB) 19,812,676,281.81 22,513,900,380.76 20,725,862,296.38 -4.41%
Net profit attributable to shareholders of
173,894,309.64 167,484,002.73 163,313,441.38 6.48%
the listed company (yuan)
Net profit attributable to the shareholders
of the listed company and after deducting 152,775,370.68 154,994,536.90 132,278,827.09 15.49%
of non-recurring gain/loss(RMB)
Net Cash flow generated by business
-1,222,463,099.76 508,005,622.06 793,017,363.32 -254.15%
operation (RMB)
Basic earnings per share (Yuan/share) 0.06 0.05 0.05 20.00%
Diluted earnings per share (Yuan/share) 0.06 0.05 0.05 20.00%
Net income on asset, weighted 1.14% 1.09% 1.04% 0.10%
Changed at end of report
Ended this report End of prev. year period over end of previous
term period
Not adjusted Adjusted Adjusted
Gross Assets (RMB) 42,830,311,499.52 43,050,307,324.66 43,050,307,324.66 -0.51%
Net asset attributable to owners of the PLC 15,333,593,391.38 15,308,337,697.63 15,308,337,697.63 0.16%
II. Differences in accounting information under IAS and domestic accounting standard
1. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
[V] Applicable Not applicable
In RMB Yuan
Net profit attributable to the shareholders of the Net asset attributable to the shareholders of the
listed company listed company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
173,894,309.64 163,313,441.38 15,333,593,391.38 15,308,337,697.63
Standard
Items and amounts adjusted on IAS
Under International
173,894,309.64 163,313,441.38 15,333,593,391.38 15,308,337,697.63
Accounting Standard
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
2. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
[V] Applicable Not applicable
In RMB Yuan
Net profit attributable to the shareholders of the Net asset attributable to the shareholders of the
listed company listed company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
173,894,309.64 163,313,441.38 15,333,593,391.38 15,308,337,697.63
Standard
Accounts and amounts adjusted according to overseas accounting standard
On IAS 173,894,309.64 163,313,441.38 15,333,593,391.38 15,308,337,697.63
No difference between the domestic and international accounting standard.
3. Statement on the differences of accounting information on IAS and domestic accounting standard
[V] Applicable Not applicable
No difference between the domestic and international accounting standard.
III. Non-recurring gain/loss items and amounts
[V] Applicable Not applicable
In RMB Yuan
Items Amount Remarks
Gain/loss from disposal of non-current assets (includes the recovered part of asset impairment provision
3,035,973.05
already provided)
Gains and losses included in the current period of government subsidies, excluding those government grants
which are closely related to normal business and in line with national policy , or in accordance with fixed 1,159,998.00
standards or quantities
Gain/loss from commissioned investment or assets 13,555,224.57
Gain/loss from debt reorganization 3,650,253.76
Other non-business income and expenditures other than the above 2,326,883.39
Less: Influenced amount of income tax 2,543,277.05 -
Influence on minority shareholders equity (after tax) 66,116.76
Total 21,118,938.96 --
If the company defines those items to recurring gain/loss items, which were defined by “Regulations of Information Disclosure of
PLCs, Explanation No.1 - Non-recurring gain/loss” as non-recurring gain/loss, please provide reason here.
[] Applicable; [V] Not applicable
None of non-recurring gain/loss items recognized as recurring gain/loss items as defined by the Information Disclosure Explanatory
Announcement No.1 – Non-recurring gain/loss in the report period.
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Chapter IV. Board of Directors’ Report
I. Business overview
Overall business operation in the report period
In the report period the countries iron & steel industry has been facing a severe economic situation and greater
difficulties in operation. The Company has been focusing on the business targets setout at the beginning of year,
keep improving its product composition, international market exploring, and cost control. Good effects were
shown in the aspects of product competition, market share, and lower costs.
In the first half of 2014, the Company produced 4.9367 million tons of iron, a decrease of 2.53% YoY; 4.9461
million tons of steel, a decrease of 2.83%; 5.7448 million tons of hot rolled plate, an increase of 17.85%; 1.8491
million tons of cool-rolled plate, a decrease of 4.98%; turnover of RMB19,812,676,300, a decrease of 4.41%; and
net profit of RMB189,169,500, an increase of 3.19%.
The Company made no modification on the production plan and strategic prospect on the 2nd half of year. The
Company will do all best to achieve the business targets setout at the beginning of year.
II. Analysis of main business
Change in main financial data
In RMB Yuan
Same period last Change over same
This report term Cause of change
year period last year
Turnover 19,812,676,281.81 20,725,862,296.38 -4.41%
Operation cost 18,139,126,080.72 19,229,253,208.00 -5.67%
Sales expense 372,505,417.15 333,928,535.05 11.55%
Administrative expense 622,556,447.37 602,065,726.99 3.40%
Increase of financial expenses was due
Financial expenses 412,018,386.28 257,471,583.45 60.02%
to exchange rate fluctuation
Caused by decrease of profit from
Income tax expenses 10,441,665.91 18,237,893.15 -42.75%
subsidiaries
Input to R&D 791,046,000.00 638,000,000.00 23.99%
Cash flow generated by Caused by increase of cash paid for
-1,222,463,099.76 793,017,363.32 -254.15%
business operation, net purchasing
Net cash flow generated by Caused by increase of cash paid for
-1,042,136,185.91 -646,545,266.71 61.19%
investment investment
Net cash flow generated by
272,112,422.68 -1,481,099,891.08 -118.37% Caused by net increase of loans
financing
Net increasing of cash and
-1,991,490,039.71 -1,349,084,535.25 47.62%
cash equivalents
Material changes in profit composition or sources
[] Applicable; [V] Not applicable
No change in profit composition or sources in the report period.
Business plans scheduled in Share Offer Prospectus or Capital Reconstruction Report which are extended to the report period
[] Applicable; [V] Not applicable
No business plans scheduled in Share Offer Prospectus or Capital Reconstruction Report which are extended to the report period
Implementation and progress of business plan provided by the previous periodic report:
None
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
III. Main business composition
In RMB Yuan
Gross profit Change in turnover Change in operation Change in gross
Turnover Operation cost
ratio % YoY cost YoY profit YoY
On Industries
Industry 18,712,609,372.61 17,181,683,180.74 8.18% -1.98% -3.26% 1.21%
On Products
Steel plate 18,357,581,603.01 16,897,230,420.45 7.96% -1.96% -3.15% 1.13%
Steel
7,366,348.70 6,616,089.48 10.18% 6,420.48% 6,446.23% -0.35%
billet
Others 347,661,420.90 277,836,670.81 20.08% -5.03% -11.45% 5.80%
On territories
Northeast 3,320,519,021.60 3,057,084,699.25 7.93% -21.93% -22.73% 0.95%
North 2,591,046,019.00 2,379,065,950.60 8.18% -3.28% -4.47% 1.14%
East 7,169,192,086.06 6,582,662,237.63 8.18% -6.46% -8.01% 1.54%
Northwest 37,077,166.92 34,043,789.54 8.18% 0.31% -1.01% 1.23%
Mid-south 646,728,430.06 593,817,931.43 8.18% -12.39% -13.70% 1.40%
Export 4,948,046,648.97 4,535,008,572.30 8.35% 33.07% 32.02% 0.72%
IV. Analyze of competitive edge
There was not any change to the core competition of the Company, and the Company was in normal operation.
V. Investment
1. Trusted financing, derivate instruments, and trusted loans
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
(1) Trusted financing
[V] Applicable Not applicable
In RMB Yuan
Impairment
Related Principal Actual
Title of Type of Amount Expired Mean of provision Predicted
Relationship transaction Started on retrieved this gain/loss of
trustee product entrusted on reward provided (if income
or not period the period
any)
ICBC Ltd. Financial Capital November Jan 10 On
No 130,000,000 130,000,000 641,095.89 641,095.89
Benxi Branch Institution guaranteed 20, 2013 2014 agreement
Guangdong
Development Financial Capital Jan 7 Jan 24 On
No 300,000,000 300,000,000 467,671.24 467,671.24
Bank Benxi Institution guaranteed 2014 2014 agreement
Branch
ICBC Ltd. Financial Capital Jan 7 Jan 16 On
No 100,000,000 100,000,000 81,369.86 81,369.86
Benxi Branch Institution guaranteed 2014 2014 agreement
Industrial
Financial Capital Jan 7 Jan 17 On
Bank Ltd. No 200,000,000 200,000,000 219,178.08 219,178.08
Institution guaranteed 2014 2014 agreement
Benxi Branch
China
Everbright
Financial Capital Feb 10 Feb 24 On
Bank No 150,000,000 150,000,000 315,000 315,000
Institution guaranteed 2014 2014 agreement
Shenyang
Branch
China
Agriculture Financial Capital Feb 12 Feb 26 On
No 250,000,000 250,000,000 345,205.48 345,205.48
Bank Benxi Institution guaranteed 2014 2014 agreement
Branch
Industrial 2014 年
Financial Capital 2014 年 02 On
Bank Ltd. No 270,000,000 02 月 24 270,000,000 507,616.44 507,616.44
Benxi Branch
Institution guaranteed 月 08 日 agreement
日
ICBC Ltd. Financial Capital Jan 8 Feb 19, On
No 100,000,000 100,000,000 449,315.07 449,315.07
Benxi Branch Institution guaranteed 2014 2014 agreement
Guangdong
Development Financial Capital Feb 10 Feb 25 On
No 200,000,000 200,000,000 341,369.86 341,369.86
Bank Benxi Institution guaranteed 2014 2014 agreement
Branch
ICBC Ltd. Financial Capital Dec 25 Feb 11 On
No 400,000,000 400,000,000 2,266,301.37 2,266,301.37
Benxi Branch Institution guaranteed 2013 2014 agreement
Industrial
Financial Capital Feb 11 Mar 6 On
Bank Ltd. No 100,000,000 100,000,000 277,479.45 277,479.45
Institution guaranteed 2014 2014 agreement
Benxi Branch
Industrial March
Financial Capital Mar 6 On
Bank Ltd. No 350,000,000 20, 350,000,000 639,863.01 639,863.01
Institution guaranteed 2014 agreement
Benxi Branch 2014
Guangdong
Development Financial Capital Mar 7 Mar 25, On
No 120,000,000 120,000,000 218,958.9 218,958.9
Bank Benxi Institution guaranteed 2014 2014 agreement
Branch
Guangdong
Development Financial Capital Feb 10 Mar 25, On
No 100,000,000 100,000,000 152,876.71 152,876.71
Bank Benxi Institution guaranteed 2014 2014 agreement
Branch
Industrial
Financial Capital Apr 2 Apr 28 On
Bank Ltd. No 200,000,000 200,000,000 609,863.01 609,863.01
Institution guaranteed 2014 2014 agreement
Benxi Branch
Guangdong
April
Development Financial Capital Apr 2 On
No 800,000,000 22, 800,000,000 1,516,027.4 1,516,027.4
Bank Benxi Institution guaranteed 2014 agreement
2014
Branch
Guangdong
Development Financial Capital Apr 21 Apr 29 On
No 400,000,000 400,000,000 334,246.58 334,246.58
Bank Benxi Institution guaranteed 2014 2014 agreement
Branch
May
CCB Co., Financial Capital April 4 On
No 200,000,000 08, 200,000,000 831,780.82 831,780.82
Ltd. Institution guaranteed 2014 agreement
2014
Industrial
Financial Capital May 4 May 15 On
Bank Ltd. No 270,000,000 270,000,000 341,753.42 341,753.42
Institution guaranteed 2014 2014 agreement
Benxi Branch
Shanghai
Financial Capital Jun 11 Jun 26 On
Pudong No 100,000,000 100,000,000 156,164.4 156,164.4
Institution guaranteed 2014 2014 agreement
Development
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Bank
Guangdong
Development Financial Capital Jun 17 Jun 24 On
No 150,000,000 150,000,000 97,397.26 97,397.26
Bank Benxi Institution guaranteed 2014 2014 agreement
Branch
Guangdong
Development Financial Capital Jun 5 Jun 11 On
No 200,000,000 200,000,000 108,493.15 108,493.15
Bank Benxi Institution guaranteed 2014 2014 agreement
Branch
ICBC Ltd. Financial Capital Apr 24 Jun 4 On
No 100,000,000 100,000,000 437,260.27 437,260.27
Benxi Branch Institution guaranteed 2014 2014 agreement
China
Agriculture
Financial Capital Jun 9 Jun 30 On
Bank Benxi No 100,000,000 100,000,000 263,013.7 263,013.7
Institution guaranteed 2014 2014 agreement
Pingshan
Branch
China
June
Construction Financial Capital May 9 On
No 200,000,000 12, 200,000,000 759,452.05 759,452.05
Bank Benxi Institution guaranteed 2014 agreement
2014
Branch
China
Construction Financial Capital Jun 16 Jul 23 On
No 200,000,000
Bank Benxi Institution guaranteed 2014 2014 agreement
Branch
ICBC Ltd. Financial Capital Jun 11 Jul 23 On
No 100,000,000
Benxi Branch Institution guaranteed 2014 2014 agreement
Shanghai
Pudong
Financial Capital May 14 May 27 On
Development No 100,000,000 100,000,000 164,931.48 164,931.48
Institution guaranteed 2014 2014 agreement
Bank Benxi
Branch
Shanghai
Pudong
Financial Capital May 28 Jun 10 On
Development No 100,000,000 100,000,000 164,931.48 164,931.48
Institution guaranteed 2014 2014 agreement
Bank Benxi
Branch
Shanghai
Pudong
Financial Capital May 7 Jun 04 On
Development No 100,000,000 100,000,000 394,520.55 394,520.55
Institution guaranteed 2014 2014 agreement
Bank Benxi
Branch
ICBC Ltd. Financial Capital May 13 Jun 23 On
No 50,000,000 50,000,000 202,191.78 202,191.78
Benxi Branch Institution guaranteed 2014 2014 agreement
Shanghai
Pudong
Financial Capital Jun 11 Jun 24 On
Development No 150,000,000 150,000,000 247,397.22 247,397.22
Institution guaranteed 2014 2014 agreement
Bank Benxi
Branch
Shanghai
Pudong
Financial Capital June 12, Jun 15 On
Development No 6,000,000 6,000,000 2,498.64 2,498.64
Institution guaranteed 2014 2014 agreement
Bank Benxi
Branch
Shanghai
Pudong
Financial Capital Jun 10 Jul 10 On
Development No 100,000,000
Institution guaranteed 2014 2014 agreement
Bank Benxi
Branch
Shanghai
Pudong
Financial Capital Jun 13 Jul 14 On
Development No 14,000,000
Institution guaranteed 2014 2014 agreement
Bank Benxi
Branch
Shanghai
Pudong
Financial Capital Jun 16 Jul 14 On
Development No 6,000,000
Institution guaranteed 2014 2014 agreement
Bank Benxi
Branch
Shanghai
Pudong
Financial Capital Jun 25 Jul 8 On
Development No 150,000,000
Institution guaranteed 2014 2014 agreement
Bank Benxi
Branch
Total 6,566,000,000 -- -- -- 5,996,000,000 13,555,224.57 13,555,224.57
Resource of capital trusted Idle capital under the Company possession
Accumulated principal and gains overdue 0
Lawsuit (if any) None
Date of announcement made by the Board about
April 22, 2014
approval of trusted financial service
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Date of announcement made by the Shareholders
Meeting about approval of trusted financial service
2. Analyze of main subsidiaries and affiliates
[V] Applicable Not applicable
Profiles of main subsidiaries and affiliates
In RMB Yuan
Major
Name of Type of Registered Operation
Industry products or Gross Assets Net asset Turnover Net profit
companies business capital profit
service
Guangzhou Steel
Sales of
Bengang Trade Subsidiaries rolling 1,000,000.00 239,672,223.18 46,843,449.40 625,537,875.05 8,340,554.14 6,243,863.11
steel
Co., Ltd. business
Shanghai
Steel
Bengang Sales of
Subsidiaries rolling 19,200,000.00 635,691,194.92 95,316,717.13 1,843,077,788.34 17,750,917.33 13,800,688.00
Metallurgy steel
business
Tech. Ltd.
Bengang Steel
Steel
Plate Liaoyang Production
Subsidiaries rolling 10,000,000.00 837,942,807.77 772,000,279.02 256,526,923.87 20,647,391.37 15,485,543.52
Orel Ball Co., of pellet
business
Ltd.
Dalian
Benruitong
Steel Processing
Automobile
Subsidiaries rolling and sales of 100,000,000.00 508,868,863.84 84,172,165.60 99,629,475.03 -2,654,962.58 -2,403,089.22
Material
business steel
Technologies
Co., Ltd.
Bengang
Steel Processing
Puxiang Cool
Subsidiaries rolling and sales of 1,920,000,000.00 4,912,010,845.01 1,413,481,120.44 3,781,533,721.93 53,772,358.98 53,772,358.98
Rolling Steel
business steel
Sheet Co., Ltd.
Changchun Steel
Sales of
Bengang Steel Subsidiaries rolling 500,000.00 66,201,239.46 10,185,916.14 343,929,156.57 2,128,938.48 1,596,703.86
steel
Sales Ltd. business
Haerbin
Steel
Bengang Sales of
Subsidiaries rolling 500,000.00 80,818,074.85 839,891.79 117,144,104.82 1,378,389.54 1,378,389.54
International steel
business
Trading Ltd.
Nanjing
Steel
Bengang Steel Sales of
Subsidiaries rolling 1,150,000.00 41,905,689.78 29,474,092.34 34,696,961.80 133,309.24 99,981.93
Material Sales steel
business
Ltd.
Steel
Wuxi Bengang Sales of
Subsidiaries rolling 1,000,000.00 66,049,339.50 8,590,814.51 423,228,864.93 5,124,780.77 3,806,763.11
Steel Sales Ltd. steel
business
Xiamen Steel
Sales of
Bengang Steel Subsidiaries rolling 500,000.00 57,576,050.03 11,747,102.21 89,552,642.54 2,232,822.64 1,674,616.98
steel
Sales Ltd. business
Steel
Yantai Bengang Sales of
Subsidiaries rolling 500,000.00 318,843,776.37 72,813,974.85 798,990,231.49 5,652,224.39 4,636,668.29
Steel Sales Ltd. steel
business
Tianjin Bengang Steel
Sales of
Steel Trading Subsidiaries rolling 3,000,000.00 144,745,440.36 41,893,355.87 299,876,658.84 904,022.73 904,022.73
steel
Ltd. business
Steel
苏州本钢实业 Shareholding Sales of
rolling 20,000,000.00 72,836,071.48 19,972,677.04 153,815,771.92 45,146.50 33,859.87
有限公司 company
business
steel
China Steel
Steel
Shanghai Steel Shareholding Sales of
rolling 89,042,954.00 650,739,066.01 106,614,254.87 504,904,150.14 1,890,936.66 1,598,240.77
Processing Co., company steel
business
Ltd.
Zhejiang
Steel
Bengang Jingrui Shareholding Sales of
rolling 10,000,000.00 83,909,955.04 11,591,669.58 59,795,563.71 600,345.21 550,949.64
Steel Processing company steel
business
Ltd.
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
3. Major projects using non-raised capital
[V] Applicable Not applicable
In RMB10 thousand
Amount Investment
Planned Accumulation of actual Turnover of
Projects invested this progress of the
investment input at end of period the project
report term project
Information system project 39,038 1,173 32,497
Environmental reconstruction of
converter and the 180t 161,790 8,315 138,974
dephosphorization converter
Silicon steel project 80,234 6,306 68,094
Production line of electro-galvanized
80,759 4,712 87,705
steel plates for automobile
Cool rolling high strength steel
660,907 10,124 63,517
rebuilding
Reconstruction project of coke dry
110,943 23,854 79,522
cooling of No.2 Coke Workshop
The new energy control center project 28,410 1,976 20,132
Construction of new warehouse in the
9,623 2,673 6,395
logistic center
Reconstruction of soft water system 4,645 1,759 5,411
360 m2 desulphurizing project 6,235 258 4,650
Reconstruction of the south gate of
4,254 1,013 3,405
transportation department
Total 1,186,838 62,163 510,302 -- --
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Chapter V. Significant Events
I. Administrative Position
There is no difference between the actual situation of the Company and the requirements of the CSRC.
II. Material lawsuits
[] Applicable; [V] Not applicable
In the report period, the Company had no material lawsuits or arbitrations.
III. Media queries
[] Applicable; [V] Not applicable
No media queries raised in the report period.
IV. Material related transactions
1. Related transactions related to daily operation
[V] Applicable Not applicable
Market
Principle of
Subjects of Amount of Ratio in price of Index of
Related Relationshi Type of pricing the Price of Way of Date of
the related trade similar similar information
parties p trade related trade payment disclosure
transactions RMB0000 trades trade disclosure
transactions
available
Benxi Steel Purchase of
(Group) goods and Maintaining 15,911.38 0.88%
Co., Ltd. services
Benxi Steel Purchase of
(Group) goods and Land rent 2,871.3 0.16%
Co., Ltd. services
Bengang
Stainless
Purchase of
Cool-rollin Products in
goods and 184.56 0.01%
g stock
services
(Dandong)
Co., Ltd.
Benxi Steel
Purchase of
(Group) Labor
goods and 69.45
Mining Co., service
services
Ltd.
Benxi Steel
Purchase of
(Group) Raw
goods and 255,246.6 14.07%
Mining Co., materials
services
Ltd.
Benxi Steel
Purchase of
(Group) Transportati
goods and 89.04
Mining Co., on
services
Ltd.
Benxi Steel
(Group) Purchase of
Raw
Metallurgy goods and 12,101.33 0.67%
materials
Residues services
Co., Ltd.
Benxi Steel Purchase of
(Group) goods and Process fee 156.94 0.01%
Steel services
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Process and
Logistics
Co., Ltd.
Benxi Steel
(Group) Purchase of
Raw
Real-estate goods and 4,064.34 0.22%
materials
Developme services
nt Co., Ltd.
Benxi Steel
Purchase of
(Group)
goods and spare parts 7,366.68 0.41%
Machinery
services
Co., Ltd.
Benxi Steel
Purchase of
(Group) Repairing
goods and 891.97 0.05%
Machinery services
services
Co., Ltd.
Benxi Steel
Purchase of
(Group)
goods and spare parts 186.86 0.01%
Constructio
services
n Co., Ltd.
Benxi Steel
Purchase of
(Group) Engineering
goods and 20,400.57 1.12%
Constructio fee
services
n Co., Ltd.
Benxi Steel
Purchase of
(Group) Raw
goods and 124.64 0.01%
Constructio materials
services
n Co., Ltd.
Benxi Steel
Purchase of
(Group) Transportati
goods and 159.51 0.01%
Constructio on
services
n Co., Ltd.
Benxi Steel
(Group) Purchase of
Industrial goods and spare parts 2,010.48 0.11%
Developme services
nt Co., Ltd.
Benxi Steel
(Group) Purchase of
Raw
Industrial goods and 12,118.84 0.67%
materials
Developme services
nt Co., Ltd.
Benxi Steel
(Group) Purchase of
Repairing
Industrial goods and 911.57 0.05%
services
Developme services
nt Co., Ltd.
Benxi Steel
(Group) Purchase of
Transportati
Industrial goods and 340.61 0.02%
on
Developme services
nt Co., Ltd.
Benxi Steel
(Group)
Purchase of
Constructio Material
goods and 345.2 0.02%
n& and parts
services
Repairing
Co., Ltd.
Benxi Steel
(Group)
Purchase of
Constructio
goods and Engineering 5,503.81 0.30%
n&
services
Repairing
Co., Ltd.
Bengang Purchase of
Raw
Electronics goods and 5,681.38 0.31%
materials
Co., Ltd. services
Bengang Purchase of
Repairing
Electronics goods and 1,208.06 0.07%
services
Co., Ltd. services
Benxi Steel
(Group) Purchase of
Drilling goods and spare parts 20.26
Tools Co., services
Ltd.
Benxi Steel
Purchase of
New Labour
goods and 211.26 0.01%
Business security fee
services
Developme
16
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
nt Co., Ltd.
Liaoning
Purchase of
Metallurgy
goods and spare parts 814.21 0.04%
Technician
services
College
Bengang
Group Purchase of
Port service
Internationa goods and 17,122.16 0.94%
and agency
l Trading services
Ltd.
Benxi Steel
(Group)
Information Purchase of
& goods and spare parts 512.66 0.03%
Automatic services
Tech. Co.,
Ltd.
Benxi Steel
(Group)
Information Purchase of
Repairing
& goods and 295.08 0.02%
services
Automatic services
Tech. Co.,
Ltd.
Benxi Steel
(Group)
Purchase of
Thermal
goods and Heating fee 635.51 0.04%
Power
services
Developme
nt Co., Ltd.
Benxi Steel
Purchase of
(Group) Engineering
goods and 521.28 0.03%
Designing fee
services
Institute
Benxi
Beiying Purchase of
Raw
Steel & Iron goods and 390,295.45 21.52%
materials
(Group) services
Co., Ltd.
Liaoning
Hengtong Purchase of Raw
Metallurgy goods and materials 3,755.86 0.21%
Equipment services and parts
Co., Ltd.
Liaoning
Hengtai Purchase of Raw
Heavy goods and materials 162.83 0.01%
Machine services and parts
Co., Ltd.
Liaoning
Hengtai Purchase of
Repairing
Heavy goods and 286.41 0.02%
and service
Machine services
Co., Ltd.
Bengang Sales of
Power
Electronics goods and 70.05
supply
Co., Ltd. services
Benxi
Beiying Sales of
Material
Steel & Iron goods and 11,825.51 0.60%
and parts
(Group) services
Co., Ltd.
Benxi
Beiying Sales of
Steel & Iron goods and Products 35,888.01 1.81%
(Group) services
Co., Ltd.
Benxi Steel
(Group) Sales of
Power
Real-estate goods and 170.29 0.01%
supply
Developme services
nt Co., Ltd.
Benxi Steel
(Group)
Sales of
Steel Power
goods and 46.89
Process and supply
services
Logistics
Co., Ltd.
Benxi Steel Sales of Products 33,041 1.67%
17
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
(Group) goods and
Steel services
Process and
Logistics
Co., Ltd.
Benxi Steel
Sales of
(Group) Power
goods and 1,490.96 0.08%
Machinery supply
services
Co., Ltd.
Benxi Steel
Sales of
(Group) Power
goods and 408.08 0.02%
Constructio supply
services
n Co., Ltd.
Benxi Steel
Sales of
(Group) Material
goods and 3,543.04 0.18%
Constructio and parts
services
n Co., Ltd.
Benxi Steel
Sales of
(Group) Power
goods and 34,301.74 1.73%
Mining Co., supply
services
Ltd.
Benxi Steel
Sales of
(Group) Material
goods and 5,921.7 0.30%
Mining Co., and parts
services
Ltd.
Benxi Steel
Sales of
(Group) Freight
goods and 486.48 0.02%
Mining Co., income
services
Ltd.
Benxi Steel
(Group)
Sales of
Thermal Power
goods and 2,233.28 0.11%
Power supply
services
Developme
nt Co., Ltd.
Benxi Steel
(Group)
Sales of
Thermal Material
goods and 37.16
Power and parts
services
Developme
nt Co., Ltd.
Benxi Steel
(Group) Sales of
Power
Industrial goods and 408.85 0.02%
supply
Developme services
nt Co., Ltd.
Benxi Steel
(Group) Sales of
Material
Industrial goods and 7,748.64 0.39%
and parts
Developme services
nt Co., Ltd.
Benxi Steel
(Group)
Sales of
Constructio Power
goods and 81.31
n& supply
services
Repairing
Co., Ltd.
Benxi Steel
(Group)
Sales of
Constructio Material
goods and 137.98 0.01%
n& and parts
services
Repairing
Co., Ltd.
Benxi Steel
(Group) Sales of
Power
Metallurgy goods and 217.62 0.01%
supply
Residues services
Co., Ltd.
Benxi Steel
(Group) Sales of
Material
Metallurgy goods and 3,500.05 0.18%
and parts
Residues services
Co., Ltd.
Benxi Steel Sales of
Power
(Group) goods and 4,072.78 0.21%
supply
Co., Ltd. services
Benxi Steel Sales of
Material
(Group) goods and 389.78 0.02%
and parts
Co., Ltd. services
18
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Benxi Steel
New Sales of
Power
Business goods and 16.83
supply
Developme services
nt Co., Ltd.
Dalian
Sales of
Boluole
goods and Products 436.8 0.02%
Steel Tube
services
Ltd.
Liaoning
Bengang Sales of
Steel & Iron goods and Products 36,303.73 1.83%
Trading services
Co., Ltd.
Tianjin
Bengang
Steel Plate Sales of
Processing goods and Products 5,720.16 0.29%
and services
Delivery
Co., Ltd.
Liaoning
Hengtong Sales of
Power
Metallurgy goods and 729.16 0.04%
supply
Equipment services
Co., Ltd.
Liaoning
Hengtong Sales of
Material
Metallurgy goods and 864.29 0.04%
and parts
Equipment services
Co., Ltd.
Bengang
Stainless
Sales of
Cool-rollin Material
goods and 65.14
g and parts
services
(Dandong)
Co., Ltd.
Bengang
Stainless
Sales of
Cool-rollin Material
goods and 780.47 0.04%
g and parts
services
(Dandong)
Co., Ltd.
Total -- -- 953,515.87 -- -- -- -- --
Details about major returning of goods None
2. Debtors and credits with related parties
[V] Applicable Not applicable
Non-operational transaction of credits and debts with related parties
[] Yes [V] No
No non-operational credit exchange in the report period.
3. Other material related transactions
[] Applicable; [V] Not applicable
No other material related transaction in the report period.
V. Non-operational capital appropriation by the controlling shareholder and its related
parties
[] Applicable; [V] Not applicable
No non-operational capital appropriation by holding shareholder or related parties occurred in the report period.
19
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
VI. Important contracts and implementing
1. Entrustment, contracting, and leasing issues
(1) Trusteeship
[] Applicable; [V] Not applicable
No trusteeship in the report period.
(2) Contracting
[] Applicable; [V] Not applicable
No contracting in the report period.
(3) Leasing
[] Applicable; [V] Not applicable
No Leasing in the report period.
2. Guarantees
[] Applicable; [V] Not applicable
No guarantee issues in the report period
(1) Illegal providing of external guarantees
[] Applicable; [V] Not applicable
No illegal providing of external guarantees in the report period.
3. Other material contracts
[] Applicable; [V] Not applicable
No other material contract in the report period.
4. Other material trades
[] Applicable; [V] Not applicable
No other material trade in the report period.
VII. Engaging or dismissing of CPAs
Whether the Interim Report was audited or not
[] Yes [V] No
20
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
VIII. Punishment and improving operations
[] Applicable; [V] Not applicable
No punishment or improving approach in the report period.
IX. Disclosure of delisting risk due to illegal operation
[] Applicable; [V] Not applicable
No such illegal action causes risk of delisting.
X. Remarks on other material issues
[V] Applicable Not applicable
On January 26, 2014, as approved by the 5th meeting of the 6th term of Board, the Company was about to issue
corporation bond up to RMB3 billion (included) to the public. This proposal was approved at the 1st shareholders
provisional meeting of 2014. The Verification Committee of CSRC verified the application on July 18, 2014. It
was approved thereafter.
21
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Chapter VI. Change of Share Equity and Shareholders
I. Statement of change in shares
In shares
Before the change Changed Currently (+,-) After the change
Issuing of Bonus Transferred
Amount Proportion Others Sub-total Amount Proportion
new shares shares from reserves
I. Shares with trade
0 0.00% 0 0.00%
restriction conditions
II. Shares without
trading limited 3,136,000,000 100.00% 3,136,000,000 100.00%
conditions
1. Common shares in
2,736,000,000 87.24% 2,736,000,000 87.24%
RMB
2. Foreign shares in
400,000,000 12.76% 400,000,000 12.76%
domestic market
III. Total of capital
3,136,000,000 100.00% 0 0 3,136,000,000 100.00%
shares
Causation of change in share equity
[] Applicable; [V] Not applicable
Approval of change in share capital
[] Applicable; [V] Not applicable
Situation of registration process of transferred shares
[] Applicable; [V] Not applicable
Influences of the change of share equity on financial indices such as basic earning per share, diluted earning per share, and net asset
per share attributed to common shareholders:
[] Applicable; [V] Not applicable
Other information the Company thinks necessary or required by the authority to be disclosed
[] Applicable; [V] Not applicable
Change of total shares and shareholding structures, assets and liabilities
[] Applicable; [V] Not applicable
22
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
II. Number of shareholders and shareholding positions
In shares
Total of shareholders of preference
Total common shareholders at the end shares with restored voting power at
53,000 0
of the report period end of report period (if any) (See Note
8)
Particulars about shareholders with over 5% of shares, or top 10 shareholders
Amount Frozen or pledged
Amount
Changed of
Shares held at of
Name of the Properties of Share in the unconditi
the end of report unconditi
shareholder shareholder proportion % report onal Status of shares Amount
term onal
period shares
shares
held
Benxi Steel (Group) State-owned legal
82.07% 2,573,632,420
Ltd. person
GIC PRIVATE
Overseas legal person 0.80% 25,093,224
LIMITED
GSIC A/C
MONETARY
Overseas legal person 0.31% 9,858,004
AUTHORITY OF
SINGAPORE
BBH A/C
VANGUARD
EMERGING Overseas legal person 0.26% 8,157,311
MARKETS STOCK
INDEX FUND
Wukuang Intl Trust
Co., Ltd. – Wukuang
Trust – Zhongyuan
Others 0.23% 7,343,914
Huiying Securities
Investment Trust
Program
陈渭明 Domestic natural person 0.14% 4,254,838
SEUNG YEOL
Overseas natural person 0.11% 3,434,495
PARK
LSV EMERGING
MARKETS Overseas legal person 0.11% 3,385,700
EQUITY FUND,L.P.
Bao Xinfa Domestic natural person 0.10% 3,202,204
Taifook Securities
Company
Overseas legal person 0.10% 3,136,109
Limited-Account
Client
Particulars about strategic investors or general
corporations becoming among the top 10
None
shareholders due to share placing (if any) (See
Note 3)
It is unknown to the Company whether there is any related connection or Action in Concert as described by
Notes to relationship or “action in concert”
Rules of Information Disclosing Regarding Changing of Shareholding Status of Listed Companies existing
among the top ten shareholders.
among the above shareholders.
Top 10 holders of unconditional shares
Category of shares
Name of the shareholder Amount of unconditional shares held at end of period
Category of shares Amount
Benxi Steel (Group) Ltd. 2,573,632,420 RMB common shares 2,573,632,420
Foreign shares placed
GIC PRIVATE LIMITED 25,093,224 25,093,224
in domestic exchange
GSIC A/C MONETARY AUTHORITY OF Foreign shares placed
9,858,004 9,858,004
SINGAPORE in domestic exchange
BBH A/C VANGUARD EMERGING Foreign shares placed
8,157,311 8,157,311
MARKETS STOCK INDEX FUND in domestic exchange
Wukuang Intl Trust Co., Ltd. – Wukuang Trust
– Zhongyuan Huiying Securities Investment 7,343,914 RMB common shares 7,343,914
Trust Program
陈渭明 4,254,838 RMB common shares 4,254,838
Foreign shares placed
SEUNG YEOL PARK 3,434,495 3,434,495
in domestic exchange
LSV EMERGING MARKETS EQUITY Foreign shares placed
3,385,700 3,385,700
FUND,L.P. in domestic exchange
Foreign shares placed
Bao Xinfa 3,202,204 3,202,204
in domestic exchange
23
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Taifook Securities Company Limited-Account Foreign shares placed
3,136,109 3,136,109
Client in domestic exchange
Benxi Steel & Iron (Group) Co., Ltd., the holding shareholder, has no relationship with any of the other
shareholders among the top 10 shareholders, neither being regarded as action-in-concert parties by the
Action-in-concert among top 10 non-restricted Information Disclosure Regulations for Change of Shareholding in PLC
current share holders, top 10 non-restricted The Company is not aware of any relationship among the other shareholders, nor of any action-in-concert as
current share holders and top 10 shareholders recognized according to the Information Disclosure Regulations for Change of Shareholding in PLC.
The Company is not aware of any relationship among the top 10 shareholders, nor of any action-in-concert as
recognized according to the Information Disclosure Regulations for Change of Shareholding in PLC.
Particulars about top 10 shareholders
participating of financing activities (if any) None
(see Note 4)
Was there any agreed repurchasing trade by shareholders in the report period
[] Yes [V] No
No agreed repurchasing trade by shareholders in the report period
III. Change of holding shareholder or substantial controller
Change of holding shareholder
[] Applicable; [V] Not applicable
No change of holding shareholder in the report period.
Change of substantial controller
[] Applicable; [V] Not applicable
No change of substantial controller in the report period.
IV. Proposals raised by the shareholders or their action-in-concert parties about increasing of
shareholding
[] Applicable; [V] Not applicable
To the knowledge of the Company, there is not any proposal raised by the shareholders or their action-in-concert parties about
increasing of shareholding.
24
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Chapter VII. Particulars about Preference Shares
25
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Chapter VIII. Particulars about the Directors, Supervisors and Senior
Executives
I. Change of shareholding of directors, supervisors and senior executives
[] Applicable; [V] Not applicable
No changes happened to any of the directors, supervisors, or executives in the report period. For details please refer to the Annual
Report 2013.
II. Replacing of directors, supervisors, and executives
[V] Applicable Not applicable
Name Jobs taken Type Date Causation
Wang Shu Director, Chairman Elected Feb 19, 2014 Replacing of jobs
Cao Aimin Director, Vice Chairman Engage/dismiss Feb 19, 2014 Replacing of jobs
Han Ge Director, GM Elected Feb 19, 2014 Replacing of jobs
Zhong Tianli Independent Director Elected May 20, 2014 Nominated by the Company
Dong Liju Supervisor, Chairman of Supervisory Committee Elected Feb 19, 2014 Replacing of jobs
Han Mei Supervisor Elected Feb 19, 2014 Replacing of jobs
Li Lin Supervisor Elected Feb 19, 2014 Replacing of jobs
Li Naiming Supervisor Elected Jan 26 2014 Replacing of jobs
Zhang Yanlong Supervisor Elected Jan 26 2014 Replacing of jobs
Wang Fengmin Vice General Manager Engaged Jan 26 2014 Replacing of jobs
Hu Guangyuan Vice General Manager Engaged Jan 26 2014 Replacing of jobs
Zhang Xiaofang Director, Chairman Resigned Jan 26 2014 Replacing of jobs
Tang Chaosheng Director Resigned Jan 26 2014 Replacing of jobs
Wang Yiqiu Independent Director Resigned Feb 28 2014 Resigned in writting
Liu Junyou Supervisor, Chairman of Supervisory Committee Resigned Jan 26 2014 Age
Zhao Wei Supervisor Resigned Jan 26 2014 Replacing of jobs
Liu Engquan Supervisor Resigned Jan 26 2014 Replacing of jobs
Wang Pu Supervisor Resigned Jan 26 2014 Replacing of jobs
Zhang Chuang Supervisor Resigned Jan 26 2014 Replacing of jobs
Zhang Guiyu Vice General Manager Dismissed Jan 26 2014 Replacing of jobs
26
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Chapter IX. Financial Report
I. Auditors’ Report
If the Interim Report is audited
[] Yes [V] No
The Semi-annual Financial Report is not audited.
II. The Financial Statements
All figures in the Notes to the Financial Statements are in RMB Yuan
1. Consolidated Balance Sheet
Bengang Steel Plate Co., Ltd.
In RMB Yuan
Items Closing balance Opening balance
Current asset:
Monetary capital 2,971,642,559.12 4,574,532,598.83
Settlement provision 0.00 0.00
Outgoing call loan 0.00 0.00
Transactional financial assets 0.00 0.00
Notes receivable 3,370,649,977.15 2,433,550,653.99
Account receivable 398,256,207.15 354,770,643.94
Prepayment 1,131,654,702.72 1,057,057,803.49
Insurance receivable 0.00 0.00
Reinsurance receivable 0.00 0.00
Provisions of Reinsurance contracts receivable 0.00 0.00
Interest receivable 0.00 0.00
Dividend receivable 0.00 0.00
Other account receivable 183,215,063.17 187,896,130.26
Repurchasing of financial assets 0.00 0.00
Inventories 11,974,444,832.13 11,607,047,545.14
Non-current asset due in 1 year 0.00 0.00
Other current asset 835,153,601.86 863,068,482.67
Total of current asset 20,865,016,943.30 21,077,923,858.32
27
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Non-current assets
Disburse of consigned loans 0.00 0.00
Sellable financial asset 0.00 0.00
Expired investment in possess 0.00 0.00
Long-term receivable 0.00 0.00
Long-term share equity investment 20,271,278.63 20,271,278.63
Investment real estates 0.00 0.00
Fixed assets 17,539,994,994.59 18,574,585,898.20
Construction in process 3,923,837,705.82 3,072,825,789.22
Engineering goods 14,878,922.92 7,821,295.85
Fixed asset disposal 0.00 0.00
Production physical assets 0.00 0.00
Gas & petrol 0.00 0.00
Intangible assets 276,082,566.98 112,092,162.53
R&D expense 0.00 0.00
Goodwill 0.00 0.00
Long-term amortizable expenses 0.00 0.00
Deferred income tax asset 190,229,087.28 184,787,041.91
Other non-current asset 0.00 0.00
Total of non-current assets 21,965,294,556.22 21,972,383,466.34
Total of assets 42,830,311,499.52 43,050,307,324.66
Current liabilities
Short-term loans 15,824,372,768.00 14,242,610,696.91
Loan from Central Bank 0.00 0.00
Deposit received and hold for others 0.00 0.00
Call loan received 0.00 0.00
Transactional financial liabilities 0.00 0.00
Notes payable 485,810,215.17 153,175,292.90
Account payable 5,548,023,456.19 7,440,328,267.35
Advances received 3,234,220,971.54 2,665,468,224.81
Selling of repurchased financial assets 0.00 0.00
Fees and commissions receivable 0.00 0.00
Employees’ wage payable 78,711,281.46 84,786,965.55
Tax payable 29,298,975.53 29,240,548.05
28
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Interest payable 32,787,514.64 24,854,193.88
Dividend payable 156,800,000.00 0.00
Other account payable 406,276,340.33 485,579,109.34
Reinsurance fee payable 0.00 0.00
Insurance contract provision 0.00 0.00
Entrusted trading of securities 0.00 0.00
Entrusted selling of securities 0.00 0.00
Non-current liability due in 1 year 437,900,000.00 1,163,814,681.99
Other current liability 0.00 0.00
Total of current liability 26,234,201,522.86 26,289,857,980.78
Non-current liabilities
Long-term borrowings 526,946,646.59 745,666,892.70
Bond payable 0.00 0.00
Long-term payable 0.00 0.00
Special payable 0.00 0.00
Expected liabilities 0.00 0.00
Deferred income tax liability 0.00 0.00
Other non-recurring liabilities 350,066,226.00 336,216,224.00
Total of non-current liabilities 877,012,872.59 1,081,883,116.70
Total of liability 27,111,214,395.45 27,371,741,097.48
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 3,136,000,000.00 3,136,000,000.00
Capital reserves 9,114,845,542.05 9,114,845,542.05
Less: Shares in stock 0.00 0.00
Special reserves 8,372,356.79 210,972.68
Surplus reserves 956,694,103.74 956,694,103.74
Common risk provision 0.00 0.00
Retained profit 2,117,681,388.80 2,100,587,079.16
Different of foreign currency translation 0.00 0.00
Total of owner’s equity belong to the parent company 15,333,593,391.38 15,308,337,697.63
Minor shareholders’ equity 385,503,712.69 370,228,529.55
Total of owners equity (or shareholders equity) 15,719,097,104.07 15,678,566,227.18
Total of liability and shareholders equity (or owners equity) 42,830,311,499.52 43,050,307,324.66
Legal representative: Wang Shu CFO: Han Ge Accounting Manager: Wang Shaoyu
29
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
2. Balance Sheet of the Parent Company
Bengang Steel Plate Co., Ltd.
In RMB Yuan
Items Closing balance Opening balance
Current asset:
Monetary capital 2,724,701,336.67 4,304,424,513.46
Transactional financial assets 0.00 0.00
Notes receivable 3,140,105,740.84 2,287,026,533.02
Account receivable 376,353,293.26 651,280,698.09
Prepayment 1,078,406,344.48 963,761,418.30
Interest receivable 0.00 0.00
Dividend receivable 0.00 0.00
Other account receivable 249,240,916.16 261,165,598.02
Inventories 10,193,894,793.27 9,885,156,126.53
Non-current asset due in 1 year 0.00 0.00
Other current asset 482,211,823.73 806,197,784.04
Total of current asset 18,244,914,248.41 19,159,012,671.46
Non-current assets
Sellable financial asset 0.00 0.00
Expired investment in possess 0.00 0.00
Long-term receivable 0.00 0.00
Long-term share equity investment 1,709,285,575.16 1,709,285,575.16
Investment real estates 0.00 0.00
Fixed assets 14,382,964,854.14 15,229,658,352.73
Construction in process 3,895,397,250.78 3,044,697,564.93
Engineering goods 14,878,922.92 7,821,295.85
Fixed asset disposal 0.00 0.00
Production physical assets 0.00 0.00
Gas & petrol 0.00 0.00
Intangible assets 165,306,864.40 0.00
R&D expense 0.00 0.00
Goodwill 0.00 0.00
Long-term amortizable expenses 0.00 0.00
Deferred income tax asset 90,617,895.81 87,312,493.14
30
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Other non-current asset 0.00 0.00
Total of non-current assets 20,258,451,363.21 20,078,775,281.81
Total of assets 38,503,365,611.62 39,237,787,953.27
Current liabilities
Short-term loans 13,351,434,800.00 12,264,551,200.00
Transactional financial liabilities 0.00 0.00
Notes payable 485,810,215.17 144,994,492.90
Account payable 5,618,495,573.98 7,570,742,890.27
Advances received 2,644,152,045.68 1,985,709,079.59
Employees’ wage payable 77,998,087.50 82,156,107.48
Tax payable 11,312,411.41 5,633,746.17
Interest payable 0.00 4,008,373.03
Dividend payable 156,800,000.00 0.00
Other account payable 269,520,371.52 297,207,569.77
Non-current liability due in 1 year 237,900,000.00 1,138,914,681.99
Other current liability 0.00 0.00
Total of current liability 22,853,423,505.26 23,493,918,141.20
Non-current liabilities
Long-term borrowings 443,946,646.59 487,566,892.70
Bond payable 0.00 0.00
Long-term payable 0.00 0.00
Special payable 0.00 0.00
Expected liabilities 0.00 0.00
Deferred income tax liability 0.00 0.00
Other non-recurring liabilities 350,066,226.00 336,216,224.00
Total of non-current liabilities 794,012,872.59 823,783,116.70
Total of liability 23,647,436,377.85 24,317,701,257.90
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 3,136,000,000.00 3,136,000,000.00
Capital reserves 8,694,693,859.93 8,694,693,859.93
Less: Shares in stock 0.00 0.00
Special reserves 8,372,356.79 210,972.68
Surplus reserves 956,694,103.74 956,694,103.74
Common risk provision 0.00 0.00
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Retained profit 2,060,168,913.31 2,132,487,759.02
Different of foreign currency translation
Total of owners equity (or shareholders equity) 14,855,929,233.77 14,920,086,695.37
Total of liability and shareholders equity (or owners equity) 38,503,365,611.62 39,237,787,953.27
Legal representative: Wang Shu CFO: Han Ge Accounting Manager: Wang Shaoyu
3. Consolidated Income Statement
Bengang Steel Plate Co., Ltd.
In RMB Yuan
Amount of the Current Amount of the Previous
Items
Term Term
I. Total revenue 19,812,676,281.81 20,725,862,296.38
Incl. Business income 19,812,676,281.81 20,725,862,296.38
Interest income 0.00 0.00
Insurance fee earned 0.00 0.00
Fee and commission received 0.00 0.00
II. Total business cost 19,636,793,455.89 20,541,226,947.59
Incl. Business cost 18,139,126,080.72 19,229,253,208.00
Interest expense 0.00 0.00
Fee and commission paid 0.00 0.00
Insurance discharge payment 0.00 0.00
Net claim amount paid 0.00 0.00
Net insurance policy reserves provided 0.00 0.00
Insurance policy dividend paid 0.00 0.00
Reinsurance expenses 0.00 0.00
Business tax and surcharge 65,093,865.48 75,176,170.37
Sales expense 372,505,417.15 333,928,535.05
Administrative expense 622,556,447.37 602,065,726.99
Financial expenses 412,018,386.28 257,471,583.45
Asset impairment loss 25,493,258.89 43,331,723.73
Plus: gains from change of fair value (“-“ for loss) 0.00 0.00
Investment gains (“-“ for loss) 13,555,224.57 271,232.94
Incl. Investment gains from affiliates 0.00 0.00
Exchange gains (“-“ for loss) 0.00 0.00
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
III. Operational profit (“-“ for loss) 189,438,050.49 184,906,581.73
Plus: Non business income 10,177,020.38 19,822,768.20
Less: Non-business expenses 3,912.18 3,170,147.09
Incl. Loss from disposal of non-current assets 3,912.18 3,170,147.09
IV. Gross profit (“-“ for loss) 199,611,158.69 201,559,202.84
Less: Income tax expenses 10,441,665.91 18,237,893.15
V. Net profit (“-“ for net loss) 189,169,492.78 183,321,309.69
Including: Net profit realized by the entity taken over before the
0.00 0.00
takeover
Net profit attributable to the owners of parent company 173,894,309.64 163,313,441.38
Minor shareholders’ equity 15,275,183.14 20,007,868.31
VI. Earnings per share: -- --
(I) Basic earnings per share 0.06 0.05
(II) Diluted earnings per share 0.06 0.05
VII. Other misc. incomes 0.00 0.00
VIII. Total of misc. incomes 189,169,492.78 183,321,309.69
Total of misc. incomes attributable to the owners of the parent
173,894,309.64 163,313,441.38
company
Total misc gains attributable to the minor shareholders 15,275,183.14 20,007,868.31
Legal representative: Wang Shu CFO: Han Ge Accounting Manager: Wang Shaoyu
4. Income Statement of the Parent Co.
Bengang Steel Plate Co., Ltd.
In RMB Yuan
Items Amount of the Current Term Amount of the Previous Term
I. Turnover 20,787,653,800.76 21,628,143,637.61
Less: Operation cost 19,444,180,864.05 20,519,434,445.03
Business tax and surcharge 51,657,819.90 65,194,222.69
Sales expense 293,693,640.45 240,973,385.94
Administrative expense 590,161,501.19 570,756,358.16
Financial expenses 335,585,476.87 187,226,665.21
Asset impairment loss 10,725,948.26 6,434,843.91
Plus: gains from change of fair value (“-“ for loss) 0.00 0.00
Investment gains (“-“ for loss) 12,378,753.42 0.00
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Incl. Investment gains from affiliates 0.00 0.00
II. Operational profit (“-“ for loss) 74,027,303.46 38,123,716.67
Plus: Non business income 8,707,545.30 16,479,841.21
Less: Non-business expenses 3,912.18 3,170,147.09
Incl. Loss from disposal of non-current assets 3,912.18 3,170,147.09
III. Total profit (“-“ for loss) 82,730,936.58 51,433,410.79
Less: Income tax expenses -1,750,217.71 -2,996,831.22
IV. Net profit (“-“ for net loss) 84,481,154.29 54,430,242.01
V. Earnings per share -- --
(I) Basic earnings per share 0.03 0.02
(II) Diluted earnings per share 0.03 0.02
VI. Other misc gains 0.00 0.00
VII. Total of integrated income 84,481,154.29 54,430,242.01
Legal representative: Wang Shu CFO: Han Ge Accounting Manager: Wang Shaoyu
5. Consolidated Cash Flow Statement
Bengang Steel Plate Co., Ltd.
In RMB Yuan
Amount of the Current Amount of the Previous
Items
Term Term
I. Net cash flow from business operation
Cash received from sales of products and providing of services 14,002,814,894.79 14,789,981,836.73
Net increase of customer deposits and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of trade financial asset disposal
Cash received as interest, processing fee, and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 68,932,133.31 30,996,440.42
Other cash received from business operation 86,797,042.80 87,494,592.98
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Sub-total of cash inflow from business activities 14,158,544,070.90 14,908,472,870.13
Cash paid for purchasing of merchandise and services 13,713,103,343.10 11,939,490,219.87
Net increase of client trade and advance
Net increase of savings in central bank and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 783,366,538.26 772,336,137.93
Taxes paid 323,152,298.20 790,306,283.46
Other cash paid for business activities 561,384,991.10 613,322,865.55
Sub-total of cash outflow from business activities 15,381,007,170.66 14,115,455,506.81
Cash flow generated by business operation, net -1,222,463,099.76 793,017,363.32
II. Cash flow generated by investing
Cash received from investment retrieving 5,996,000,000.00 200,000,000.00
Cash received as investment profit 13,555,224.57 271,232.94
Net cash retrieved from disposal of fixed assets, intangible assets, and
107,610.00 1,200.00
other long-term assets
Net cash received from disposal of subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to investment activities 6,009,662,834.57 200,272,432.94
Cash paid for construction of fixed assets, intangible assets and other
1,015,799,020.48 646,817,699.65
long-term assets
Cash paid as investment 6,036,000,000.00 200,000,000.00
Net increase of loan against pledge
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 7,051,799,020.48 846,817,699.65
Net cash flow generated by investment -1,042,136,185.91 -646,545,266.71
III. Cash flow generated by financing
Cash received as investment
Incl. Cash received as investment from minor shareholders
Cash received as loans 6,865,596,700.00 7,044,796,300.00
Cash received from bond placing 0.00 0.00
Other financing-related cash received 0.00 0.00
Subtotal of cash inflow from financing activities 6,865,596,700.00 7,044,796,300.00
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Cash to repay debts 6,160,643,950.04 8,080,372,685.77
Cash paid as dividend, profit, or interests 432,840,327.28 445,523,505.31
Incl. Dividend and profit paid by subsidiaries to minor shareholders 0.00 0.00
Other cash paid for financing activities 0.00 0.00
Subtotal of cash outflow due to financing activities 6,593,484,277.32 8,525,896,191.08
Net cash flow generated by financing 272,112,422.68 -1,481,099,891.08
IV. Influence of exchange rate alternation on cash and cash equivalents 996,823.28 -14,456,740.78
V. Net increase of cash and cash equivalents -1,991,490,039.71 -1,349,084,535.25
Plus: Balance of cash and cash equivalents at the beginning of term 4,574,532,598.83 3,816,212,299.73
VI. Balance of cash and cash equivalents at the end of term 2,583,042,559.12 2,467,127,764.48
Legal representative: Wang Shu CFO: Han Ge Accounting Manager: Wang Shaoyu
6. Cash Flow Statement of the Parent Co.
Bengang Steel Plate Co., Ltd.
In RMB Yuan
Amount of the Current Amount of the Previous
Items
Term Term
I. Net cash flow from business operation
Cash received from sales of products and providing of services 14,949,401,332.02 15,599,774,568.74
Tax returned 45,691,196.11 0.00
Other cash received from business operation 81,643,887.99 83,448,848.78
Sub-total of cash inflow from business activities 15,076,736,416.12 15,683,223,417.52
Cash paid for purchasing of merchandise and services 14,602,349,222.29 13,121,695,994.83
Cash paid to staffs or paid for staffs 731,018,365.31 711,677,716.95
Taxes paid 208,539,084.75 689,700,794.48
Other cash paid for business activities 511,566,893.57 568,162,927.56
Sub-total of cash outflow from business activities 16,053,473,565.92 15,091,237,433.82
Cash flow generated by business operation, net -976,737,149.80 591,985,983.70
II. Cash flow generated by investing
Cash received from investment retrieving 5,490,000,000.00 0.00
Cash received as investment profit 12,378,753.42 0.00
Net cash retrieved from disposal of fixed assets, intangible assets, and
107,610.00 1,200.00
other long-term assets
Net cash received from disposal of subsidiaries or other operational units 0.00 0.00
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Other investment-related cash received 0.00 0.00
Sub-total of cash inflow due to investment activities 5,502,486,363.42 1,200.00
Cash paid for construction of fixed assets, intangible assets and other
1,006,510,420.24 628,282,637.69
long-term assets
Cash paid as investment 5,260,000,000.00 0.00
Net cash received from subsidiaries and other operational units 0.00 0.00
Other cash paid for investment activities 0.00 0.00
Sub-total of cash outflow due to investment activities 6,266,510,420.24 628,282,637.69
Net cash flow generated by investment -764,024,056.82 -628,281,437.69
III. Cash flow generated by financing
Cash received as investment 0.00 0.00
Cash received as loans 5,672,286,500.00 5,070,753,895.09
Cash received from bond placing 0.00 0.00
Other financing-related cash received 0.00 0.00
Subtotal of cash inflow from financing activities 5,672,286,500.00 5,070,753,895.09
Cash to repay debts 5,527,516,348.80 5,851,688,315.77
Cash paid as dividend, profit, or interests 376,062,171.80 372,589,598.06
Other cash paid for financing activities 0.00 0.00
Subtotal of cash outflow due to financing activities 5,903,578,520.60 6,224,277,913.83
Net cash flow generated by financing -231,292,020.60 -1,153,524,018.74
IV. Influence of exchange rate alternation on cash and cash equivalents 3,730,050.43 -1,545,608.13
V. Net increase of cash and cash equivalents -1,968,323,176.79 -1,191,365,080.86
Plus: Balance of cash and cash equivalents at the beginning of term 4,304,424,513.46 3,480,999,428.60
VI. Balance of cash and cash equivalents at the end of term 2,336,101,336.67 2,289,634,347.74
Legal representative: Wang Shu CFO: Han Ge Accounting Manager: Wang Shaoyu
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7. Statement of Change in Owners’ Equity (Consolidated)
Bengang Steel Plate Co., Ltd.
Amount of the Current Term
In RMB Yuan
Amount of the Current Term
Owners’ Equity Attributable to the Parent Company
Items Minor shareholders’ Total of owners’
Capital paid in (or share Less: Shares in Special Surplus Common risk
Capital reserves Retained profit Others equity equity
capital) stock reserves reserves provision
I. Balance at the end of last year 3,136,000,000.00 9,114,845,542.05 0.00 210,972.68 956,694,103.74 0.00 2,100,587,079.16 0.00 370,228,529.55 15,678,566,227.18
Plus: Change of accounting policy 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Correcting of previous errors 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Balance at the beginning of current
3,136,000,000.00 9,114,845,542.05 210,972.68 956,694,103.74 2,100,587,079.16 370,228,529.55 15,678,566,227.18
year
III. Amount of change in current term
0.00 0.00 8,161,384.11 0.00 17,094,309.64 15,275,183.14 40,530,876.89
(“-“ for decrease)
(I) Net profit 0.00 0.00 0.00 0.00 173,894,309.64 15,275,183.14 189,169,492.78
(II) Other misc. income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total of (I) and (II) 0.00 0.00 0.00 0.00 173,894,309.64 15,275,183.14 189,169,492.78
(III) Investment or decreasing of capital
0.00 0.00 0.00 0.00 0.00 0.00 0.00
by owners
1. Capital inputted by owners 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2. Amount of shares paid and accounted
0.00 0.00 0.00 0.00 0.00 0.00 0.00
as owners’ equity
3. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(IV) Profit allotment 0.00 0.00 0.00 0.00 -156,800,000.00 0.00 -156,800,000.00
1. Providing of surplus reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2. Common risk provision 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3. Allotment to the owners (or
0.00 0.00 0.00 0.00 -156,800,000.00 0.00 -156,800,000.00
shareholders)
4. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(V) Internal transferring of owners’
0.00 0.00 0.00 0.00 0.00 0.00 0.00
equity
1. Capitalizing of capital reserves (or to
0.00 0.00 0.00 0.00 0.00 0.00 0.00
capital shares)
2. Capitalizing of surplus reserves (or to
0.00 0.00 0.00 0.00 0.00 0.00 0.00
capital shares)
3. Making up losses by surplus reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(VI) Special reserves 0.00 0.00 8,161,384.11 0.00 0.00 0.00 8,161,384.11
1. Provided this year 0.00 0.00 17,569,715.43 0.00 0.00 0.00 17,569,715.43
2. Used this term 0.00 0.00 9,408,331.32 0.00 0.00 0.00 9,408,331.32
(VII) Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IV. Balance at the end of this term 3,136,000,000.00 9,114,845,542.05 8,372,356.79 956,694,103.74 2,117,681,388.80 385,503,712.69 15,719,097,104.07
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Amount of Last Year
In RMB Yuan
Amount of Last Year
Owners’ Equity Attributable to the Parent Company
Minor
Items Less: Common Total of owners’
Capital paid in (or Special Surplus shareholders’
Capital reserves Shares in risk Retained profit Others equity
share capital) reserves reserves equity
stock provision
I. Balance at the end of last
3,136,000,000.00 8,822,821,134.76 0.00 311,224.81 934,045,040.35 0.00 2,387,628,114.61 0.00 34,756,303.72 15,315,561,818.25
year
Plus: Retrospective
adjustment caused by merger
of entities under common
control
Plus: Change of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
accounting policy
Correcting of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
previous errors
Others 0.00 1,439,933,253.22 0.00 0.00 0.00 0.00 -477,264,971.81 0.00 331,620,490.32 1,294,288,771.73
II. Balance at the beginning
3,136,000,000.00 10,262,754,387.98 0.00 311,224.81 934,045,040.35 0.00 1,910,363,142.80 0.00 366,376,794.04 16,609,850,589.98
of current year
III. Amount of change in
current term (“-“ for 0.00 -1,147,908,845.93 0.00 -100,252.13 22,649,063.39 0.00 190,223,936.36 0.00 3,851,735.51 -931,284,362.80
decrease)
(I) Net profit 0.00 0.00 0.00 0.00 0.00 0.00 275,592,999.75 0.00 3,851,735.51 279,444,735.26
(II) Other misc. income 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total of (I) and (II) 0.00 0.00 0.00 0.00 0.00 0.00 275,592,999.75 0.00 3,851,735.51 279,444,735.26
(III) Investment or decreasing
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
of capital by owners
1. Capital inputted by owners 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2. Amount of shares paid and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
accounted as owners’ equity
3. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(IV) Profit allotment 0.00 0.00 0.00 0.00 22,649,063.39 0.00 -85,369,063.39 0.00 0.00 -62,720,000.00
1. Providing of surplus
0.00 0.00 0.00 0.00 22,649,063.39 0.00 -22,649,063.39 0.00 0.00 0.00
reserves
2. Common risk provision 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3. Allotment to the owners
0.00 0.00 0.00 0.00 0.00 0.00 -62,720,000.00 0.00 0.00 -62,720,000.00
(or shareholders)
4. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(V) Internal transferring of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
1. Capitalizing of capital
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserves (or to capital shares)
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
2. Capitalizing of surplus
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserves (or to capital shares)
3. Making up losses by
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
surplus reserves
4. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(VI) Special reserves 0.00 0.00 0.00 -100,252.13 0.00 0.00 0.00 0.00 0.00 -100,252.13
1. Provided this year 0.00 0.00 0.00 35,218,214.92 0.00 0.00 0.00 0.00 0.00 35,218,214.92
2. Used this term 0.00 0.00 0.00 35,318,467.05 0.00 0.00 0.00 0.00 0.00 35,318,467.05
(VII) Others 0.00 -1,147,908,845.93 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,147,908,845.93
IV. Balance at the end of this
3,136,000,000.00 9,114,845,542.05 0.00 210,972.68 956,694,103.74 0.00 2,100,587,079.16 0.00 370,228,529.55 15,678,566,227.18
term
Legal representative: Wang Shu CFO: Han Ge Accounting Manager: Wang Shaoyu
8. Statement of Change in Owners’ Equity (Parent Co.)
Bengang Steel Plate Co., Ltd.
Amount of the Current Term
In RMB Yuan
Amount of the Current Term
Items Capital paid in (or share Less: Shares in Special Surplus Common risk
Capital reserves Retained profit Total of owners’ equity
capital) stock reserves reserves provision
I. Balance at the end of last year 3,136,000,000.00 8,694,693,859.93 210,972.68 956,694,103.74 2,132,487,759.02 14,920,086,695.37
Plus: Change of accounting policy 0.00 0.00 0.00 0.00 0.00 0.00
Correcting of previous errors 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00
II. Balance at the beginning of current year 3,136,000,000.00 8,694,693,859.93 210,972.68 956,694,103.74 2,132,487,759.02 14,920,086,695.37
III. Amount of change in current term (“-“ for decrease) 0.00 0.00 8,161,384.11 0.00 -72,318,845.71 -64,157,461.60
(I) Net profit 0.00 0.00 0.00 0.00 84,481,154.29 84,481,154.29
(II) Other misc. income 0.00 0.00 0.00 0.00 0.00 0.00
Total of (I) and (II) 0.00 0.00 0.00 0.00 84,481,154.29 84,481,154.29
(III) Investment or decreasing of capital by owners 0.00 0.00 0.00 0.00 0.00 0.00
1. Capital inputted by owners 0.00 0.00 0.00 0.00 0.00 0.00
2. Amount of shares paid and accounted as owners’
0.00 0.00 0.00 0.00 0.00 0.00
equity
3. Others 0.00 0.00 0.00 0.00 0.00 0.00
(IV) Profit allotment 0.00 0.00 0.00 0.00 -156,800,000.00 -156,800,000.00
1. Providing of surplus reserves 0.00 0.00 0.00 0.00 0.00 0.00
2. Common risk provision 0.00 0.00 0.00 0.00 0.00 0.00
3. Allotment to the owners (or shareholders) 0.00 0.00 0.00 0.00 -156,800,000.00 -156,800,000.00
4. Others 0.00 0.00 0.00 0.00 0.00 0.00
(V) Internal transferring of owners’ equity 0.00 0.00 0.00 0.00 0.00 0.00
1. Capitalizing of capital reserves (or to capital shares) 0.00 0.00 0.00 0.00 0.00 0.00
2. Capitalizing of surplus reserves (or to capital shares) 0.00 0.00 0.00 0.00 0.00 0.00
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
3. Making up losses by surplus reserves 0.00 0.00 0.00 0.00 0.00 0.00
4. Others 0.00 0.00 0.00 0.00 0.00 0.00
(VI) Special reserves 0.00 0.00 8,161,384.11 0.00 0.00 8,161,384.11
1. Provided this year 0.00 0.00 17,569,715.43 0.00 0.00 17,569,715.43
2. Used this term 0.00 0.00 9,408,331.32 0.00 0.00 9,408,331.32
(VII) Others
IV. Balance at the end of this term 3,136,000,000.00 8,694,693,859.93 0.00 8,372,356.79 956,694,103.74 0.00 2,060,168,913.31 14,855,929,233.77
Amount of Last Year
In RMB Yuan
Amount of Last Year
Items Capital paid in (or share Less: Shares in Special Surplus Common risk
Capital reserves Retained profit Total of owners’ equity
capital) stock reserves reserves provision
I. Balance at the end of last year 3,136,000,000.00 8,822,821,134.76 0.00 311,224.81 934,045,040.35 0.00 1,991,366,188.51 14,884,543,588.43
Plus: Change of accounting policy 0.00 0.00 0.00 0.00 0.00 0.00
Correcting of previous errors 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00
II. Balance at the beginning of current year 3,136,000,000.00 8,822,821,134.76 311,224.81 934,045,040.35 1,991,366,188.51 14,884,543,588.43
III. Amount of change in current term (“-“ for decrease) 0.00 -128,127,274.83 -100,252.13 22,649,063.39 141,121,570.51 35,543,106.94
(I) Net profit 0.00 0.00 0.00 0.00 226,490,633.90 226,490,633.90
(II) Other misc. income 0.00 0.00 0.00 0.00 0.00 0.00
Total of (I) and (II) 0.00 0.00 0.00 0.00 226,490,633.90 226,490,633.90
(III) Investment or decreasing of capital by owners 0.00 0.00 0.00 0.00 0.00 0.00
1. Capital inputted by owners 0.00 0.00 0.00 0.00 0.00 0.00
2. Amount of shares paid and accounted as owners’
0.00 0.00 0.00 0.00 0.00 0.00
equity
3. Others 0.00 0.00 0.00 0.00 0.00 0.00
(IV) Profit allotment 0.00 0.00 0.00 22,649,063.39 -85,369,063.39 -62,720,000.00
1. Providing of surplus reserves 0.00 0.00 0.00 22,649,063.39 -22,649,063.39 0.00
2. Common risk provision 0.00 0.00 0.00 0.00 0.00 0.00
3. Allotment to the owners (or shareholders) 0.00 0.00 0.00 0.00 -62,720,000.00 -62,720,000.00
4. Others 0.00 0.00 0.00 0.00 0.00 0.00
(V) Internal transferring of owners’ equity 0.00 0.00 0.00 0.00 0.00 0.00
1. Capitalizing of capital reserves (or to capital shares) 0.00 0.00 0.00 0.00 0.00 0.00
2. Capitalizing of surplus reserves (or to capital shares) 0.00 0.00 0.00 0.00 0.00 0.00
3. Making up losses by surplus reserves 0.00 0.00 0.00 0.00 0.00 0.00
4. Others 0.00 0.00 0.00 0.00 0.00 0.00
(VI) Special reserves 0.00 0.00 -100,252.13 0.00 0.00 -100,252.13
1. Provided this year 0.00 0.00 35,218,214.92 0.00 0.00 35,218,214.92
2. Used this term 0.00 0.00 35,318,467.05 0.00 0.00 35,318,467.05
(VII) Others 0.00 -128,127,274.83 0.00 0.00 0.00 -128,127,274.83
IV. Balance at the end of this term 3,136,000,000.00 8,694,693,859.93 210,972.68 956,694,103.74 2,132,487,759.02 14,920,086,695.37
Legal representative: Wang Shu CFO: Han Ge Accounting Manager: Wang Shaoyu
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
III. Company Profiles
Bengang Steel Plates Co., Ltd. (hereinafter referred to as “the Company”), as approved in Liao-Zheng (1997) No.
57 by Liaoning Peoples Government on 27 March 1997, was incorporated as a joint stock limited company
through public share offer of domestic listed foreign currency denominated shares (B shares) in the Peoples
Republic of China (the “PRC”) on 27 June 1997 by Benxi Iron and Steel (Group) Co., Ltd. (“Bengang 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, the Company issued 400,000,000 B-shares at
RMB2.38 each in Shenzhen Stock Exchange on 10 June 1997. On 3 November 1997, the Company issued another
120,000,000 A-shares (Renminbi Common Shares) at RMB5.40 each, and listed in Shenzhen Stock Exchange
since 15 January 1998. The capital shares were totaled to 1,136,000,000 shares including 616,000,000 shares held
by the promoter.
On March 14 2006, according to the resolutions of the Shareholders Meeting regarding share equity relocation,
the Share Equity Relocation Scheme, Response to Bengang Steel Plate Co., Ltd. about Share Equity Relocation
issued by Liaoning Provincial Government State-owned Asset Administrative Committee, Bengang Group – the
only holder of non-negotiable state-owned legal person shares paid the consideration to the current shareholders to
obtain the current option for the 40,800,000 shares of the total 616,000,000 shares it was holding. However the
total of capital shares of Bengang Steel Plate was not changed through the share equity relocation action.
China Securities Regulatory Commission issued Zheng-Jian-Gong-Si-Zi [2006] 126 on June 30th 2006 and
served to the Company on July 6th 2006. The Company was approved to place 2 billion Renminbi common shares
particularly to Bengang Group and the proceeds would be used to purchase the related assets of the Group. On the
same day, Bengang Group received circular Zheng-Jian-Gong-Si-Zi [2006] 127 issued by China Securities
Regulatory Committee, and was exempted for the liability of undertaking the purchase offer. The liability was
caused by subscribing of the 2 billion new shares and the total shareholding was thus increased to 2.5752 billion
shares (account for 82.12% of the total capital shares of the Company). On August 28 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 28 2006, the privately placed
shares were approved by Shenzhen Stock Exchange to be placed in the stock market. The new shares were placed
in the market on October 9th 2006, with face value of RMB1.00 per share and the placing price was RMB4.6733
per share.
Up to June 30 2014, the capital shares of Bengang Steel Plates Co., Ltd were amounted to 3,136,000,000 shares.
The business license was numbered 2100001049024. The registered address is: 18th Gangtie Road, Pingshan,
Benxi, Liaoning Province. The registered capital is RMB3,136,000,000. The legal representative is Wang Shu.
The parent company of Bengang Steel Plates Co., Ltd is Benxi Iron and Steel (Group) Co., Ltd. and the actual
controller is the State-owned Assets Supervision and Administration Commission of the State Council of Liaoning
province.
Bengang Steel Plate Co., Ltd. is mainly involved in processing and trading of recycled metal (including color
metal), steel & iron making, rolling, and trading, oxygen making, special pre-shaped steel material, metal process,
goods and technology import & export (exclude categories prohibited by the national government, constrained
products can only be traded with special certificates), measuring instruments, electronic & mechanical equipment,
sales of steel, new industrial products, developing of technologies, recycling of gas dust and waste oil (excluding
dangerous materials), production of dangerous chemical materials.
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
IV. Principal Accounting Policies, Estimations and Correcting of Previous Errors
1. Basis of financial statement
The Company prepares its financial statements on perpetual basis and accrual basis, with accordance with the
Enterprise Accounting Standard issued by the Department of Finance on February 15, 2006 – the basic rules and
38 principles, as well as the proceeding instructions, interpretations, and other rules (regarded collectively as 搕
he Enterprise Accounting Standard?, and also the Information Disclosure Rules No.15 – General rules of financial
statements (Revised 2010) issued by China Securities Regulatory Commission.
2. Statement of compliance to the Enterprise Accounting Standard
The financial statements present truly and completely the financial position, operation results and cash flow of the
company.
3. Accounting period
A fiscal year starts from January 1 and ends at December 31 of a calendar year.
4. Standard currency for bookkeeping
The Company uses Renminbi (RMB) as the standard currency for book keeping.
5. Accounting treatment of the merging entities under common control and different control
(1) Merger of entities under common control
To the business combination under common control, the assets and liabilities obtained by the acquirer shall be
measured at carrying amount in the acquiree's accounts as at the date of combination. If the accounting policies
which are applied by acquiree are different from the acquirer, the carrying amounts shall be adjusted on the basis
of the acquirers accounting policies.
The difference between the carrying amount of the net assets obtained and the cost of combination (or the total
face value of shares issued), capital surplus shall be adjusted. Where the capital surplus is not sufficient to o be
subtracted, retained earnings shall be adjusted.
The direct cost for the business combination of the combining party shall, including the expenses for audit,
assessment and legal services, be recorded into the profits and losses at the current period.
The handling fees, commissions and other expenses for the issuance of equity securities for the business
combination shall be credited against the surplus of equity securities; if the surplus is not sufficient, the retained
earnings shall be offset.
(2) Business combination involving entities 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.
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
The Company shall distribute the combination costs on the acquisition date and recognize acquirees identifiable
assets, liabilities and contingent liabilities on fair value.
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.
As for the assets other than intangible assets acquired from the acquiree in a business combination (not limited to
the assets which have been recognized by the acquiree), if the economic benefits brought by them are likely to
flow into the Company and their fair values can be measured reliably, they shall be separately recognized and
measured in light of their fair values. As for any intangible asset acquired in a combination, if its fair value can be
measured reliably, it shall be separately recognized as an intangible asset and shall be measured in light of its fair
value. As for the liabilities other than contingent liabilities acquired from the acquiree, if the performance of the
relevant obligations is likely to result in any out-flow of economic benefits from the Company, and their fair
values can be measured reliably, they shall be separately recognized and measured in light of their fair values. As
for the contingent liabilities of the acquiree obtained in a combination, if their fair values can be measured reliably,
they shall separately be recognized as liabilities and shall be measured in light of their fair values.
Deductible temporary differences acquired from the acquiree in business combination shall not be recognized if
recognition criteria for deferred tax assets are not met on the acquisition date. If new or further information
indicates the condition has already existed on the acquisition date within 12 months after the date of acquisition
and the economic benefit brought by deductible temporary differences is expected to be realized, the deferred tax
assets shall be recognized and goodwill reduced simultaneously. If the goodwill is not sufficient for deduction, the
rest shall be put into profit or loss of current period. Apart from above situation, deferred tax assets relevant to
business combination shall be recognized and recorded into profit or loss of current period.
The intermediary costs and relevant management fee for the business combination not under same control 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 or debt securities for the
business combination shall be recorded into the initial recognition amount of equity securities or debt securities
6. Preparing method of consolidated financial statements
The scope of consolidation of consolidated financial statements is determined based on control. All the subsidies
have been consolidated into the scope of consolidation for this period ended.
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 Companys
accounting policies and accounting period when preparing the consolidated financial statements. For subsidiaries
through acquisition that are not under common control, the financial statements are adjusted according to fair
value of net assets on the acquisition date. The consolidated financial statements shall, on the basis of the financial
statements of the company and its subsidiaries together with other relevant material, be prepared by the company
after the long term equity investments in the subsidiaries are adjusted through the equity method.
The impact of transactions between the Company and its subsidiaries and inter-subsidiaries for the consolidated
statement of financial position, consolidated statement of comprehensive income, consolidated statement of cash
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
flows and consolidated statement of changes of equity are eliminated when preparing the consolidated financial
statements.
The non-controlling interests and profit or loss of the subsidiary 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.
Where losses assumed by the minority exceed the minoritys interests in the beginning equity of a subsidiary, the
excess are charged against the minoritys interests
If the parent company has a new subsidiary due to business combination under common control during a reporting
period, it shall adjust the beginning balance in the consolidated statement of financial position when preparing
consolidated statement of financial position. The revenue, expenses and profits of the subsidiaries from the
acquisition date to the end of the reporting period are included in the parent companys 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 parent companys 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 existed from the very beginning.
If it is not under common control, the parent company shall not adjust the beginning balance in the consolidated
statement of financial position when preparing consolidated statement of financial position. The revenue, expenses
and profits of the subsidiaries from the acquisition date to the end of the reporting period are included in the
parent companys 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 parent companys consolidated statement of
cash flows. For the business combination not under common control realized step by step and by multiple
transactions, the shares held before the purchase date shall be revalued according to the fair value of the purchase
date. The difference between the fair value and the book value shall be recorded into current investment gains. If
the shares held before the purchase involves other comprehensive income, the comprehensive income shall be
transferred to investment gain of purchasing period.
If the Company disposes of a subsidiary within reporting period, the revenue, expenses and profits of the
subsidiaries from the beginning of the reporting period to the disposal date are included in the parent companys
consolidated statement of comprehensive income. The cash flows of the subsidiaries from the beginning of the
reporting period to the disposal date are included in the parents consolidated statement of cash flows. In case of
disposal of some equities and other reasons, the Company loses control of previous subsidiary. In such cases, the
remaining equity investment shall be revalued according to the fair value of the date of losing control. The
difference, arising from the consideration for disposing the equity investment and the fair value of the remaining
equity minus the net assets calculated per the previous proportion of shares from the date of purchase, shall be
recorded into the period of losing control as the investment gain. The other comprehensive income relevant to the
equity investment shall be transferred to current investment gain when losing control.
The difference, arising from purchasing long term equity investment from non-controlling minority minus the
identifiable net assets calculated as per the new shareholding proportion of subsidiary, and the difference, arising
from the consideration for disposing the equity investment minus the net assets of the subsidiary relevant to the
disposed part of long term equity investment, shall be offset against capital premium of the capital reserves in the
consolidated statement of financial position. If the capital reserve is insufficient to dilute, the retained earnings
shall be adjusted.
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
7. Recognition basis of cash and cash equivalents
At preparing of cash flow statement, those investments, which are featured with short term (expire within 3
months since purchased), high liquidity, easy to convert to know cash, low in risk of value change, could be
recognized as cash equivalents. Equity investment are not recognized as cash equivalents.
8. Translation of businesses and accounts in foreign currency
(1) Business in foreign currency
Business transactions involving with foreign currencies occurred are booked and translated into RMB at the rate
announced by Peoples Bank of China of the day.
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 shall be recorded into the
profits and losses at the current period. The foreign currency non-monetary items measured at the historical cost
shall still be translated at the spot exchange rate on the transaction date, of which the amount of functional
currency shall not be changed. The foreign currency non-monetary items measured at the fair value shall still be
translated at the spot exchange rate on the date of confirming the fair value and the balance of exchange arising
from it shall be recorded into profits and losses at the current period or capital reserves.
(2) Translating of financial statements in foreign currencies
The asset and liability items in the balance sheets 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 profit statements shall
be translated at the spot exchange rate of the transaction date. The balance arisen from the translation of foreign
currency financial statements in compliance with the aforesaid Items shall be presented separately under the
owner's equity item of the balance sheets.
When disposing an overseas business, an enterprise shall shift the balance, which is presented under the items of
the owner's equities in the balance sheet 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. If the overseas business
is disposed of partially, the enterprise shall calculate the balance arising from the translation of foreign currency
statements of the part of disposal based on the disposal rate and shall shift them into the profits and losses of the
current period.
9. Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
(1) Categorizing of financial instruments
According to the purpose of holding financial assets and financial liabilities, the Company classifies its financial
assets and financial liabilities as: financial assets or financial liabilities designated at fair value through current
profit and loss, including: trading financial investment, held-to-maturity investment; loans and receivables,
available-for-sale investment and other financial liabilities.
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
(2) Recognition basis and measurement of financial instruments
1) The financial assets(financial liabilities) at fair value through profit or loss includes:
The financial assets (financial liabilities) at fair value through profit or loss are recognized initially at fair value
(minus cash dividends declared but not received or bond interest matured but not drawn yet). The relevant
transaction cost is recognized in the income statement when occurred.
Interests or cash dividends during the period of holding are recognized as investment gains. The fair value will be
adjusted and accounted as current gain/loss.
When disposed, the differences between fair value and initial amount are recognized as investment gains, and thus
adjust the gain/loss of fair value.
2) Held-to-maturity investment
The Held-to-maturity investments are recognized initially at fair value (minus bond interest matured but not
drawn yet). The relevant transaction cost is recognized in the income statement when occurred.
The held-to-maturity investments are measured at amortized cost using the effective interest rate. The interest
income is recognized as investment income. The effective interest will be determined at the initial recognition and
will not be changed in the holding period or within the applicable period.
When disposing the held-to-maturity investment, the difference between the investing proceeds and the carrying
value is recognized as investment income.
3) Receivables
Receivables from selling products and rendering services or receivable of other company not including the
receivables with quoted price in the active market (including: accounts receivable, other receivables, notes
receivable, prepayments, long-term receivables) are measured at contract price; if the receivables is of financing
nature, it shall be recognized at the present value initially.
When disposing the receivables, the difference between the proceeds and the carrying value is recognized in the
income statement.
4) Available for sale financial assets
Available for sale financial assets are initially recorded at fair value plus any directly attributable transaction costs
on the trade date and subsequently re-measured at fair value. The price including the declared but not received
bond interest or cash dividend is recognized as a separate item.
The Company recognizes the interest or cash dividends as investment income. At each balance sheet date,
available-for-sale financial assets are measured at fair value and the fair value changes are recognized in the
capital reserve - other capital reserve.
The difference between the proceeds of the disposal and the carrying value should be recognized as investment
income. And the related fair value change in the equity should be transferred out, and recorded as investment
income.
5) Other financial liabilities
For other financial liabilities, they are initially recognized at fair value plus any directly attributable transaction
costs. After the initial recognition, the other financial liabilities are measured at amortized cost.
(3) Recognition basis and measurement for transferred financial assets
Where an enterprise has transferred nearly all of the risks and rewards related to the ownership of the financial
asset to the transferee, it shall stop recognizing the financial asset. If it retained nearly all of the risks and rewards
related to the ownership of the financial asset, it shall not stop recognizing the financial asset.
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
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 enterprise shall pay more attention to the essential of the transfer
of the financial asset.
1) Book value of the financial asset to be transposed;
2) The sum of price received due to the transposition, and the accumulation of change in fair value originally
accounted as owners equity (when the asset to be transposed is saleable financial asset).
If the transfer of partial financial asset satisfies the conditions to stop the recognition, 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, 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;
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 condition for 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 an enterprise (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 is substantially different from that regarding the
existing financial liability, it shall terminate the recognition of the existing financial liability, and shall at the same
time recognize the new financial liability.
Where an enterprise makes substantial revisions to some or all of the contractual stipulations of the existing
financial liability, it shall terminated the recognition of the existing financial liability or part of it, and at the same
time recognize the financial liability after revising the contractual stipulations as a new financial liability.
Where the recognition of a financial liability is totally or partially terminated, the enterprise concerned shall
include into the profits and losses of the current period the gap 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 an enterprise buys back part of its financial liabilities, it shall distribute, on the report day, 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
non-cash 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) Recognition of fair values of financial assets and liabilities
The fair values of the financial assets or financial liabilities measured at fair value shall be determined by
reference to the quoted prices in the active market.
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(6) Impairment test and basis of provisions on financial assets (exclude receivable accounts)
The company shall carry out impairment review for the financial assets at the balance sheet date except for the
financial assets at fair value through profit or loss. Where there is any objective evidence proving that such
financial asset has been impaired, an impairment provision shall be made.
1) Impairment of available-for-sale financial assets
An impairment provision shall be made where the fair value of the held-to-maturity financial assets drop
significantly at the balance sheet date or the trend of decrease is expected not to be temporary after taking various
factors into consideration. The accumulative losses arising from the decrease of the fair value of the owners
equity which was directly included shall be transferred out and recorded as impairment loss.
Where any available-for-sale debt instruments is recognized as having suffered from any impairment loss, if there
is any objective evidence proving that the value of the said debt instruments has been restored, and it is
objectively related to the events that occur after such loss is recognized, the impairment-related losses as
originally recognized shall be reversed and be recorded into the profits and losses of the current period.
Impairment losses incurred by investment transactions of available-for-sale equity instruments shall not be
reversed through profits and losses.
2) Impairment of held-to-maturity investment
Calculating of impairment loss of investment held till expiration will be with reference to the calculating of
account receivable impairment loss.
Recognition standard for impairment of sellable financial assets.
None
(7) If investment held to mature is relocated to sellable financial assets, please state the intention or
evidence of change in capability
None
10. Recognition standard and providing basis of bad debt provision on receivable accounts
(1) Bad debt provision on receivable accounts with major amount individually
Basis of recognition or
standard amount of
Balance of account receivable RMB10 million; other account receivable RMB5 million or over.
individual account with
large amount
The impairment test should be assessed individually for each individually significant receivable. If the
there is evidence indicating the receivables have been impaired, the difference between the present
Basis of bad debt provision
value of the future cash flows and the book value of receivables shall be recognized as bad debt
provision and shall be recorded into the profits and losses at the current period.
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
(2) Receivable accounts on which bad debt provisions are provided as groups
Name of the portfolio Basis of bad debt provision Basis of recognition for portfolios
Within 1 yr, (included) Age analysis method
1-2 yrs (included) Age analysis method 5
2-3 yrs (included) Age analysis method 20
Over 3 yrs Age analysis method 100
Bad debt provisions are provided on age analyze basis in the portfolio
[V] Applicable Not applicable
Rate of provision on receivable
Age Rate of provision on other receivable accounts
accounts
1-2 yrs 5.00% 5.00%
2-3 yrs 20.00% 20.00%
Over 3 yrs 100.00% 100.00%
Bad debt provisions are provided on percentage basis in the portfolio
[] Applicable; [V] Not applicable
Bad debt provisions are provided on other basis in the portfolio
[] Applicable; [V] Not applicable
(3) Receivable accounts with minor amount but bad debt provisions are provided individually
Basis of providing bad debt individually When there is solid evidence showing that it is not retrievable.
When there is solid evidence showing that the possibility of retrieving is minor, the
Basis of bad debt provision account shall be tested for impairment individually and bad debt provision shall be
provided at the estimated unrecoverable amount.
11. Inventories
(1) Inventory classification
Inventories include material in transit, raw material, low-valued consumables, work in process, finished goods, materials for
consigned processing, etc.
(2) Pricing of inventory to be delivered
Pricing base: weighted average
(3) Recognition of realizable net value of inventory and providing of inventory impairment provision
At the year end, complete check of the inventories shall be carried out and on the date of balance sheet, the
inventories shall be measured whichever is lower in accordance with the cost and the net realizable value.
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
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 an
enterprise 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.
The Company shall make provision for loss on decline in value of inventories on the ground of each item of
inventories at the year end. For inventories with large quantity and relatively low unit prices, the provision for loss
on decline in value of inventories shall be made on the ground of the categories of inventories.
When the circumstances of deducting the inventory value have eliminated, the deducted amount should be
restored and written back within the original amount of impairment provision provided previously.
(4) Inventory system
Inventory system: perpetual inventory system
(5) Amortization of low-value consumables and packaging materials
Low price consumable
Basis of amortizing: one-off
Packaging materials
Basis of amortizing: one-off
12. Long-term equity investment
1) Initial measurement
(1) The initial cost of long-term equity investment from business acquisition:
For the acquisition under the common control, if the consideration of the acquiring enterprise is that it makes
payment in cash, transfers non-cash assets, bears its debts, or issues equity securities, it shall, on the date of
acquisition, regard the share of the book value of the owner's equity of the acquired enterprise as the initial cost of
the long-term equity investment. The difference between the initial cost of the long-term equity investment and
the payment borne by the acquiring party shall offset against the capital reserve. If the capital reserve is
insufficient to dilute, the retained earnings shall be adjusted. The direct cost for the business combination of the
combining party, including the expenses for audit, assessment and legal services, shall be recorded into the profits
and losses at the current period.
For the combination not under the common control, the combination costs shall be the fair values, on the
acquisition date, of the assets paid, the liabilities incurred or assumed and the equity securities issued by the
acquirer in exchange for the control on the acquiree. Agency fees incurred for business combination by the
acquirer, including audit fee, legal services, evaluation and consultation fee, shall be recorded in current profits
and losses when incurred. Trading costs of issuance cost of equity securities or debt securities as the consideration
for business combination by the acquirer shall be recorded in initial cost of such equity securities or debt securities.
For a business combination realized by two or more transactions of exchange, the combination costs shall be the
sum of the costs of all separate transactions. Where any future event that is likely to affect the combination costs
is stipulated in the combination contract or agreement, if it is likely to occur and its effects on the combination
costs can be measured reliably, the acquirer shall record the said amount into the combination costs.
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(2) The initial cost of the long-term equity investment other than from business acquisition:
The initial cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost
which is actually paid.
The initial cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fair
value of the equity securities issued.
The initial cost of a long-term equity investment of an investor shall be the value stipulated in the investment
contract or agreement (minus cash dividend or profit declared but not paid) except the unfair value stipulated in
the contract or agreement.
If the exchange of non-monetary assets is commercial in nature and the fair values of both the assets received and
surrendered can be reliably measured, the fair value of the assets surrendered shall be used as the basis for
determining the cost of the assets received, unless there is any exact evidence showing that the fair value of the
assets received is more reliable. Where any non-monetary assets transaction does not meet the conditions as
prescribed above, the carrying value and relevant payable taxes of the assets surrendered shall be the initial cost of
the assets received.
The initial cost of a long-term equity investment obtained by debt restructuring shall be ascertained on the basis of
fair values.
2) Subsequent measurement and profit or loss recognition
(1) Subsequent measurement
The Company adopts cost method for the long term investment in subsidiary company and shall make an
adjustment by employing the equity method when it prepares consolidated financial statements.
For a long-term equity investment for which there is no quoted price in the active market and of which the fair
value cannot be reliably measured, if the investing enterprise has no joint control or significant influence over the
invested entity, the cost method shall be employed in the measurement.
A long-term equity investment of the investing enterprise that has joint control or significant influences over the
invested entity shall be measured by employing the equity method. If the initial cost of a long-term equity
investment is more than the investing enterprise' attributable share of the fair value of the invested entity's
identifiable net assets for the investment, the initial cost of the long-term equity investment may not be adjusted. If
the initial cost of a long-term equity investment is less than the investing enterprise' attributable share of the fair
value of the invested entity's identifiable net assets for the investment, the difference shall be included in the
current profits and losses.
Where any change is made to the owner's equity other than the net profits and losses of the invested entity and if
the percentage of the share remains the same, the book value of the long-term equity investment shall be adjusted
in accordance with the attributable part calculated as per the proportion of the shares and simultaneously capital
reserves (other capital reserves) shall be increased or decreased accordingly.
3) Recognition of gains and losses
Under the cost method, an investing enterprise shall, in accordance with the attributable share of the net profits or
losses of the invested entity, recognize the investment profits or losses except the dividend declared but unpaid,
which is included in the payment when acquiring the investment.
Under the equity method, the following factors shall be taken into consideration: if the accounting policies and
accounting periods adopted by the invested entity are different from those adopted by the Company, an
adjustment shall be made to the financial statements of the invested entity in accordance with the accounting
policies and accounting periods of investing enterprise, the impact on the net profit caused by the depreciation and
amortization, which shall be based on the fair value of fixed assets and intangible assets determined while
acquiring the investment, as well as the related assets impairment; the offset of the unrealized inter-company
transaction profits between the Company and the jointly controlled enterprises and associates. After considering
the adjustments above, it shall, in accordance with the attributable share of the net profits or losses of the invested
entity, recognize the investment profits or losses.
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When the Company recognizes the losses of invested enterprise, it shall follow the following sequence: First of all,
offset the book value of long term equity investment. If the book value of long term equity is insufficient to dilute,
the investing enterprise shall recognize the net losses of the invested enterprise until the book value of the
long-term equity investment and other long-term rights and interests which substantially form the net investment
made to the invested entity are reduced to zero. If the company still has the obligation to undertake extra losses
per contract, and then estimated liabilities shall be recognized into current profit and loss accordingly to the
estimated obligation. When the invested enterprise realizes any net profit in the future period, the Company shall
reduce the un-recognized loss first and then make the reverse accounting treatment as above, reduce the book
value of recognized contingent liabilities, recover the book value of the long-term equity investment and other
long-term right and interests which substantially form the net investment made to the invested entity and at the
same time, and recognize the income on investment.
In the investing period, when invested enterprise could provide consolidated financial statements, the calculation
shall be based on the net profit and other equity changes of the consolidated financial statements.
4) Criteria for the determination of joint control and significant influence over invested enterprise
The term "joint control" refers to the control over an economic activity in accordance with the contracts and
agreements, which does not exist unless the investing parties of the economic activity with unanimous consent on
sharing the control power over the relevant important financial and operating decisions. Where an investing
enterprise and other parties do joint control over an invested entity, the invested entity shall be their joint
enterprise. The term "significant influences" refers to the power to participate in making decisions on the financial
and operating policies of an enterprise, but not to control or do joint control together with other parties over the
formulation of these policies. Where an investing enterprise is able to have significant influences on an invested
entity, the invested entity shall be its associate.
5) Impairment test and provision for impairment
For a long-term equity investment for which there is no quoted price in the active market and of which the fair
value cannot be reliably measured and the investing enterprise does not have significant influence over the
invested entity, the impairment shall be determined by the balance between its carrying value and the present
value of its future cash flows discounted by the present market rate of return of the similar financial assets.
For other long-term equity investment other than goodwill arising from the business combination, if the
recoverable amount shows the recoverable amount of the long term equity investment is less than the book value,
the balance shall be recognized as an impairment loss.
Once any impairment loss of long-term equity investment is recognized, it shall not be switched back in the future
accounting periods.
13. Investment property
The term "investment properties" refers to the real estate held for generating rent and/or capital appreciation. The
investment properties include:
(1) The land use right which has already been rented;
(2) The land use right which is held and prepared for transfer after appreciation; and
(3) The building which has already been rented(including self-constructed or developed buildings for rent after
completion or buildings being built or developed in process for future rent).
The investment properties shall be measured by the cost model. For the investment properties measured at cost
model and building for rent, the same depreciation policy shall be adopted as that of fixed assets; for land use
right, the same amortization policy shall be adopted as that of intangible assets.
Where any evidence shows that there is possible investment properties impairment, the recoverable amount of the
investment properties shall be estimated. If the recoverable amount of the investment properties is lower than the
book value, the impairment loss shall be recognized accordingly
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Once any impairment loss of investment properties is recognized, it shall not be switched back in the future
accounting periods.
14. Fixed assets
(1) Recognition of fixed assets
The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows: (1) They
are held for the sake of producing commodities, rendering labor service, renting or business management; and (2)
Their useful life is in excess of one fiscal year.
(2) Recognition and pricing of fixed asset leased by financing
When one of the following conditions was satisfied, it will be recognized as asset leased by financing:
1) The ownership will be under the possession of the Company upon expiration of leasing period;
2) The option to acquire the asset is open to the Company, and with a price far lower than the fair value of the
asset on execution of the option.
3) The leasing period is taking the majority part of its useful life;
4) There is no material difference between the current value of the lowest rental at the starting date and the fair
value of the asset. At the starting date, the Company recorded the lower one of fair value and the current value of
the lowest rental as the book value of the leased asset, the lowest rental payment as the book value of long term
payable, and the difference was recorded as un-recognized financing expenses.
(3) Depreciation of different fixed assets
Depreciation method shall be recognized in yearly average method according to category of fixed assets, expected
useful life and expected residual value. Different parts of an asset shall use different depreciation method
according to different useful life and contribution to benefit.
Fixed assets rented in by finance, if it is reasonably predictable that the property rights can be acquired when the
rental period is expired, depreciation will be upon the retained useful life. If it cant be reasonably predictable that
the property rights can be acquired when the rent period is expired, depreciation will be upon the shorter one of
the rental period and the retained useful life.
Categories Depreciation age (year) Retain value rate Annual depreciation ratio
Houses & buildings 8-30 years 0.00% 3.33-12.5
Equipment & machinery 4-18 years 3.00% 5.39-24.3
Electronic equipment 5-18 years 3.00% 5.39-19.4
Transportation equipment 5-18 years 3.00% 5.39-19.4
(4) Impairment test and providing of impairment provisions on fixed assets
The Company shall, on the day of balance sheet, make a judgment on whether there is any sign of possible fixed
assets impairment. Where any evidence shows that there is possible fixed assets impairment, the recoverable
amount of the fixed assets shall be estimated. The recoverable amount shall be determined in light of the higher
one of the net amount of the fair value of the fixed assets minus the disposal expenses and the present value of the
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expected future cash flow of the fixed assets.
Where the measurement result of the recoverable amount indicates that an fixed asset's recoverable amount is
lower than its carrying value, the carrying value of the fixed asset shall be recorded down to the recoverable
amount, and the reduced amount shall be recognized as the loss of fixed asset impairment and be recorded as the
profit or loss for the current period. Simultaneously, a provision for the fixed asset impairment shall be made
accordingly.
After the loss of fixed asset impairment has been recognized, the depreciation or amortization expenses of the
impaired fixed asset shall be adjusted accordingly in the future periods so as to amortize the post-adjustment
carrying value of the fixed asset systematically (deducting the expected net salvage value) within the remaining
useful life of the fixed asset.
Once any loss of fixed asset impairment is recognized, it shall not be switched back in the future accounting
periods.
Where there is any evidence indicating a possible impairment of fixed assets, the Company shall, on the basis of
single item assets, estimate the recoverable amount. Where it is difficult to do so, it shall determine the
recoverable amount of the group assets on the basis of the asset group to which the fixed asset belongs.
(5) Other remarks
None
15. Construction-in-process
(1) Categories of construction-in-process
Constructions in process are accounted at each category.
(2) Standard and timing for transferring of construction-in-process to fixed assets
The entire expenses occurred before the construction-in-process reaches useable status are recognized as the book
value of the fixed asset. When the construction-in-process has reached the useable status but not performed
completion settlement, it is transferred into fixed asset at estimated value according to the budget and actual costs
since the day when it reaches the useable status. Depreciation shall be provided according to the Companys
policies about fixed asset depreciation. Upon completion of the settlement process, the original estimated value
should be adjusted according to the actual costs. However the depreciations already provided are not going to be
adjusted.
(3) Impairment test and providing of impairment provisions on construction-in-process
On each balance sheet date, the Company made assessment on whether or not there is any indication of potential
impairment of construction in progress.
In case any construction in process were impaired, its recoverable value shall be estimated. In case there is
evidence showing that any construction in process were impaired, the Company shall estimate the recoverable
amount basing on the individual project. In case it is hard to estimate the recoverable value, it shall be evaluated
along with the group of constructions in process.
The recoverable amount of construction in progress is measured at the higher of the assets fair value less costs to
sell and the present value of the expected cash flow.
If the recoverable value is lower than the book value of the particular construction in process. The book value of
the construction shall be written down to the recoverable amount. The written down amount shall be recognized as
impairment loss of the project and accounted into current gain/loss account. Impairment provisions shall be
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provided correspondingly.
Impairment loss shall not be written back as soon as recognized.
16. Borrowing costs
1) Principle of the recognition of capitalized borrowing costs
The borrowing costs shall include interest on borrowings, amortization of discounts or premiums on borrowings,
ancillary expenses, and exchange balance on foreign currency borrowings.
Where the borrowing costs incurred to an enterprise can be directly attributable to the acquisition and construction
or production of assets eligible for capitalization, it shall be capitalized and recorded into the costs of relevant
assets. Other borrowing costs shall be recognized as expenses on the basis of the actual amount incurred, and shall
be recorded into the current profits and losses.
The term "assets eligible for capitalization" shall refer to the fixed assets, investment real estate, inventories and
other assets, of which the acquisition and construction or production may take quite a long time to get ready for its
intended use or for sale.
The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements:
(1) The asset disbursements have already incurred, which shall include cash, transferred non-cash assets or
interest bearing debts paid for the acquisition and construction or production activities for preparing assets eligible
for capitalization;
(2) The borrowing costs has already incurred; and
(3) The acquisition and construction or production activities which are necessary to prepare the asset for its
intended use or sale have already started.
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.
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.
Where each part of a qualified asset under acquisition and construction or production is completed separately and
is ready for use, the capitalization of the borrowing costs in relation to this part of asset shall be ceased.
Where each part of an asset under acquisition and construction or production is completed separately and is ready
for use or sale during the continuing construction of other parts, but it cannot be used or sold until the asset is
entirely completed, the capitalization of the borrowing costs shall be ceased when the asset is completed entirely.
3) The suspension of capitalization of borrowing costs
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the
interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. If
the interruption is a necessary step for making the qualified asset under acquisition and construction or production
ready for the intended use or 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 capitalized amount of borrowing costs
For interest expense (minus the income of interests earned on the unused borrowing loans as a deposit in the bank
or investment income earned on the loan as a temporary investment) and the ancillary expense incurred to a
specifically borrowed loan, those incurred before a qualified asset under acquisition, construction or production is
ready for the intended use or sale shall be capitalized at the incurred amount when they are incurred, and shall be
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recorded into the costs of the asset eligible for capitalization;
The enterprise shall calculate and determine the to-be-capitalized amount of interests on the general borrowing by
multiplying the weighted average asset disbursement of the part of the accumulative asset disbursements minus
the general borrowing by the capitalization rate of the general borrowing used. The capitalization rate shall be
calculated and determined in light of the weighted average interest rate of the general borrowing.
Where there is any discount or premium, the amount of discounts or premiums that shall be amortized during each
accounting period shall be determined by the effective interest rate method, and an adjustment shall be made to
the amount of interests in each period.
17. Intangible assets
1. Measurement of Intangible Assets
(1). Initial measurement is based on cost upon acquisition.
The intangible assets shall be recorded at initial cost.
The cost of an intangible asset on acquisition include the purchase price, relevant taxes and other necessary
disbursements which may be directly attributable to bringing the intangible asset to the conditions for the expected
purpose. If the payment for an intangible asset is delayed beyond the normal credit conditions and it is of the
financing nature, the cost of the intangible asset shall be determined on the basis of the present value of the
purchase price.
For intangible assets obtained from debt restructuring as settlement of liabilities from debtors, initial recognition is
based on its fair value, and the difference between the debt restructured and the fair value of the intangible assets
are recognized in the current profit and loss.
For intangible assets obtained from non-monetary transactions with commercial substance, and the fair value of
the assets obtained or surrendered can be reliably measured, the initial recognition of the asset obtained is based
on the fair value of the asset surrendered, unless there is strong evidence that the fair value of the asset obtained is
more reliable. For intangible assets obtained through non-monetary transactions which do not meet the above
criteria, the initial recognition is based on the book value of the assets surrendered and the relevant taxes payable.
No gain or loss will be recognized.
For intangible assets obtained in a business combination under the same control, initial recognition is based on the
book value of the assets according to the record of the party being combined. If the intangible assets are obtained
in a business combination not under the same control, initial recognition is based on the fair value.
For self-developed intangible assets, the costs shall include the cost of material consumed in developing the
intangible assets, labor costs, registration cost, and amortization of other patents and royalty in the developing
process, the capitalized interest expense and other necessary expenditures directly attributable to intangible assets
for the expected purpose.
(2). Subsequent Measurement
The Company shall analyze and judge the beneficial period of intangible assets upon acquisition.
Intangible assets with finite beneficial period shall be amortized under the straight-line method during the period
when the intangible asset can bring economic benefits to the enterprise. If it is unable to estimate the beneficial
period of the intangible asset, it shall be regarded as an intangible asset with uncertain service life and shall not be
amortized.
2. Estimated useful lives of intangible assets with limited useful lives
Item Estimated useful life Criteria
Land use right 50 years Land use right certificate
The Company shall review the useful lives and amortization methods of intangible assets with limited useful lives
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at each year end.
Per review, the useful lives and amortization methods of intangible assets with limited useful lives at each
year-end is the same with that of last year.
3. Determination of intangible assets with uncertain useful lives
The Company shall review the useful lives of intangible assets with uncertain useful lives at each year end.
Per review, the useful life of the intangible assets is still uncertain.
4. Impairment of intangible assets
For intangible assets with finite beneficial period, impairment test shall be performed at end of the period if there
is strong evidence that impairment exists.
Impairment test shall be carried out for intangible assets with uncertain beneficial period at each end of the period.
Impairment test shall be performed for intangible assets and recoverable amount shall be estimated. Where there
is any evidence indicating a possible impairment of intangible assets, the Company shall, on the basis of single
item assets, estimate the recoverable amount. If the recoverable amount of the individual asset is undeterminable,
the company shall determine the recoverable amount of the asset group to which the intangible asset belongs.
The recoverable amount of the intangible assets shall be determined as higher of the net amount of the fair value
of the intangible assets less disposal expenses, and the present value of the expected future cash flows of the
intangible assets.
When the recoverable amount of intangible asset is lower than the carrying value, the Company shall reduce the
carrying value to the recoverable amount. The reduction amount is recorded as impairment loss of intangible asset,
and is recorded in the current profits and losses. After the impairment has been recognized, the amortization of the
impaired intangible assets shall be adjusted accordingly in the future periods so as to amortize the adjusted
carrying value of the intangible assets systematically (deducting the expected salvage value) over the remaining
useful life of the intangible assets.
Impairment loss on intangible assets shall not be reversed in the future accounting periods.
5. Classification criteria for internal research phase and development phase
The expenditures for its internal research and development projects of an enterprise shall be classified into
research expenditures and development expenditures.
Research phase refers to the phase of creative and planned investigation to acquire and study to acquire and
understand new scientific or technological knowledge.
Development phase refers to the phase during which the result of research phase or other knowledge is applied
into certain projects or designs for the manufacturing of new or substantially improved material, device and
product.
6. Criteria of capitalization of development expenditure
Expenditures during the development phase of internal research and development projects shall be recognized as
intangible assets when they meet all the following criteria:
(1) It is feasible technically to complete the intangible assets for use or sale;
(2) The intention to complete and use or sell the intangible assets is present;
(3) The method of which the intangible assets generate economic benefits shall be proved, including being able to
prove that there is a potential market for the products manufactured by applying the intangible assets or there is a
potential market for the intangible assets itself or the intangible assets will be used internally;
(4) It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with
the support of sufficient technologies, financial resources and other resources; and
(5) The development expenditures of the intangible assets can be reliably measured.
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The development expenditures for its internal research and development projects of an enterprise shall be
recorded into the profit or loss for the current period if the above said conditions are not satisfied simultaneously.
The research expenditures for its internal research and development projects of an enterprise shall be recorded into
the profit or loss for the current period when incurred.
18. Estimated liabilities
When the Company is involved in litigation, guarantees provided for the debts of other enterprises, loss contract,
restructuring and these events will result in future assets transfer or rendering of services and the amount of the
obligation can be measured reliably, the estimated liabilities shall be recognized.
1. Recognition of estimated liabilities
The obligation pertinent to a Contingency shall be recognized as an estimated debt when the following conditions
are satisfied simultaneously:
(1) That obligation is a current obligation of the enterprise;
(2) It is likely to cause any economic benefit to flow out of the enterprise as a result of performance of the
obligation; and
(3) The amount of the obligation can be measured in a reliable way.
2. Measurement of estimated liabilities
The estimated debts shall be initially measured in accordance with the best estimate of the necessary expenses for
the performance of the current obligation.
To determine the best estimate, an enterprise shall take into full consideration of the risks, uncertainty, time value
of money, and other factors pertinent to the Contingencies. If the time value of money is of great significance, the
best estimate shall be determined after discounting the relevant future outflow of cash.
The best estimate shall be conducted in accordance with the following situations, respectively:
If there is a continuous range for the necessary expenses and if all the outcomes within this range are equally
likely to occur, the best estimate shall be determined in accordance with the average estimate within the range,
that is, the average of the upper and lower limit.
If there is not a sequent range for the necessary expenses and if the outcomes within this range are not equally
likely to occur, the best estimate shall be determined as follows:
(1) If the Contingencies concern a single item, it shall be determined in the light of the most likely outcome.
(2) If the Contingencies concern two or more items, the best estimate should be calculated and determined in
accordance with all possible outcomes and the relevant probabilities.
When all or some of the expenses necessary for the liquidation of an estimated debts of an enterprise is expected
to be compensated by a third party, the compensation should be separately recognized as an asset only when it is
virtually certain that the reimbursement will be obtained. The amount recognized for the reimbursement should
not exceed the book value of the estimated debts.
19. Repurchasing of the Company’s shares
None
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20. Revenue
1. Recognition Criteria for the Revenue from sale of goods
The Company has transferred to the buyer the significant risks and rewards of ownership of the goods; and
retained neither continuing managerial involvement which usually relates to the ownership nor exerts effective
control over the goods sold. The relevant amount of revenue can be measured reliably, the economic benefits
related to the transaction will flow into the enterprise; and the relevant costs incurred or to be incurred can be
measured reliably. Revenue from the sale of goods may be recognized.
2. Recognition Criteria for the Revenue from alienating of Assets Use Rights
When it is probable that economic benefits in relation to the transaction will flow into the enterprise; and the
amount of revenues can be measured reliably. The Company shall ascertain the amount of revenues from the
transfer of Assets Use Right based on the following circumstances respectively:
(1) Interest income shall be calculated based on the duration of which the Company's cash is used by others and
the actual interest rate; or
(2) Royalty revenue shall be calculated based on the period and method of charging as stipulated in the relevant
contract or agreement.
3. Recognition Criteria for the Revenue from Providing Labor Services and Construction Contracts under
Percentage of Completion Method
Revenue from providing labor services are recognized under the percentage of completion method if the outcome
of the labor service provision transaction can be reliably measured. Percentage completed is determined by
measurement of work completed.
Total revenue from providing of labor services is determined based on the received or receivable amount
stipulated in the contract or agreement, unless the received or receivable amount as stipulated in the contract or
agreement is unfair. The Company shall, on the date of the balance sheet, ascertain the current revenue from
providing labor services by multiplying the total amount of revenues from providing labor services with the
percentage completion, less cumulative revenues recognized in the previous accounting periods. At the same time,
the enterprise shall recognize current cost of labor services by multiplying the total estimated cost of providing of
labor services with percentage completion less cumulative costs recognized in the previous accounting periods.
If the result of a transaction concerning the providing of labor services cannot be reliably measured at the balance
sheet date, it shall be measured as follows:
(1) If the cost of labor services incurred is expected to be compensated, the revenue from the providing of labor
services shall be recognized to the extent of the cost of labor services incurred, and the cost of labor services shall
be recognized; or
(2) If the cost of labor services incurred is not expected to compensate, the cost incurred should be recognized in
the current profit and loss, and no revenue from the providing of labor services shall be recognized.
21. Government allowance
1. Types of government subsidies
A government subsidy means the monetary or non-monetary assets obtained free of charge by the Company from
the government. Government subsidies consist of the government subsidies pertinent to assets and government
subsidies pertinent to income.
2. Accounting treatment
The government subsidies pertinent to fixed assets and intangible assets acquired and constructed shall be
recognized as deferred income and equally recognized over the useful lives of the relevant assets as non-operating
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income;
The government subsidies pertinent to incomes to subsidize future expenses shall be recognized as deferred
income and transferred to non-operating income in the period during which the expenses subsidized is recognized.
Government subsidies to subsidize past expenses or losses shall be recognized in the statement of comprehensive
income in the period during which the subsidy is received.
22. Deferred income tax asset and deferred income tax liabilities
(1) Basis for recognition of deferred income tax assets
The deferred tax assets shall be recognized for all deductible temporary differences to the extent that taxable profit
will be available against which the deductible temporary differences can be utilized.
(2) Basis for recognition of deferred income tax liabilities
All taxable temporary differences shall be recognized as deferred tax liabilities with certain limited exceptions.
23. Operational leasing and financial leasing
1) Accounting of operational leasing
(1). The rents paid for operating leases shall be recorded in the profits and losses of the current period by using the
straight-line method over each period of the lease term. The initial direct costs paid by the Company shall be
recorded into the profits and losses of the current period
If the lesser has shouldered any expense related to the lease which should have been borne by the Company, the
Company shall deduct these expenses from the total rental expense and the remaining rental expense shall be
allocated to each period during the lease term
(2). The rents collected from operating leases shall be recorded in the profits and losses of the current period by
using the straight-line method over each period of the whole lease term in which free lease period is included. The
initial direct costs paid by the Company shall be recorded into the profits and losses of the current period. The
initial direct costs shall be capitalized if it is material, and be allocated to each period as per the basis for rental
revenue recognition.
If the Company has shouldered any expense related to the lease which should have been borne by the lessee, the
company shall deduct these expenses from the total rental revenue and the remaining rental revenue shall be
allocated to each period during the lease term.
2) Accounting treatment of financed leasing
Leased in asset
On the lease beginning date, a lessee shall record the lower one of the fair value of the leased asset and the present
value of the minimum lease payments on the lease beginning date as the initial book value, recognize the amount
of the minimum lease payments as the initial book value of long-term account payable, and treat the balance
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between the recorded amount of the leased asset and the long-term account payable as unrecognized financing
charges.
The lessee shall adopt the effective interest rate method to calculate and recognize the financing charge in the
current period. The unrecognized financing charge shall be amortized to each period during the lease term.
(3) Accounting treatment of renting back after sales
None
24. Hedging instruments
None
25. Change of main accounting policies and estimations
Is there any material change of accounting policies occurred in the year.
[] Yes [V] No
None
(1) Change of accounting policies
Is there any change in accounting policies in the report period
[] Yes [V] No
None
(2) Change of accounting estimations
Is there any change in accounting estimations in the report period
[] Yes [V] No
None
26. Correction of accounting errors in previous period
Is there any accounting error with previous period found in the report period
[] Yes [V] No
None
(1) Retrospective restatement
Is there any retrospective restatement on the accounting error with previous periods done in the report term
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[] Yes [V] No
(2) Future adoption method
Is there any future adoption method applicable to accounting errors with previous periods found in the report period.
[] Yes [V] No
27. Other principal accounting policies, estimations and preparation method of financial statements
None
V. Taxation
1. Main categories and rates of taxes
Tax
Class of tax Tax basis
rate
Calculated on tax law from selling goods and taxable services based on the calculation of output
VAT 17%
tax, after deduction of input tax deductibility of the current period, the balance part of VAT payable
Consumption tax Calculated and paid according to the regulations in the tax law
Operational tax Revenue of leasing and taxable services 5%
City maintenance and
Taxable upon the VAT, operation tax, and the assumption of VAT 7%
construction tax
Enterprise income tax Taxable income 25%
Income tax rate applicable to branches and factories.
None
2. Preferential tax and approving documents
None
3. Other statements
None
63
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
VI. Enterprise Merger and Consolidating of Financial Statements
1. Particulars of the subsidiaries
None
(1) Subsidiaries obtained through incorporation or investment
In RMB
Balance of the owners equity of
Balance of other Amount for parent co. after deducting of the
Actual items actually Portion of Minor deducting minor exceeding part of minority
Full name of the Ownership of Business Registered Business Share
Reg. Add. investment formed net voting Consolidated shareholders’ shareholders equity shareholders share of loss over
subsidiary the subsidiary property capital Scope proportion %
at year end investment in the rights equity in the minor the share of minority
subsidiaries shareholders equity shareholders in the owners
equity at beginning of year
Guangzhou
Sales of
Bengang Trade Fully-owned Guangzhou Sales 100.00 100.00 100.00% 100.00% Yes
steel
Co., Ltd.
Shanghai
Bengang Sales of
Fully-owned Shanghai Sales 1,920.00 1,920.00 100.00% 100.00% Yes
Metallurgy Tech. steel
Ltd.
Bengang Steel
Production
Plate Liaoyang
Fully-owned Liaoyuang Production 1,000.00 and sales of 52,989.98 100.00% 100.00% Yes
Orel Ball Co.,
ore ball
Ltd.
Dalian
Benruitong
Automobile Sales of
Holding Dalian Production 10,000.00 6,500.00 65.00% 65.00% Yes 2,946.03 -84.11
Material steel plates
Technologies Co.,
Ltd.
Supplementary remarks on subsidiaries obtained through incorporation or investment
None
64
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(2) Subsidiaries procured through merger of entities under common control
In RMB
Balance of the owners equity of
Balance of other Amount for parent co. after deducting of the
Actual items actually Portion of Minor deducting minor exceeding part of minority
Full name of the Ownership of Reg. Business Registered Business Share
investment formed net voting Consolidated shareholders’ shareholders equity shareholders share of loss over
subsidiary the subsidiary Add. property capital Scope proportion %
at year end investment in the rights equity in the minor the share of minority shareholders
subsidiaries shareholders equity in the owners equity at beginning
of year
Changchun
Sales of
Bengang Steel Fully-owned 长春 Sales 50.00 -135.51 100.00% 100.00% Yes
steel
Sales Ltd.
Haerbin
Bengang Sales of
Fully-owned Harbin Sales 50.00 42.34 100.00% 100.00% Yes
International steel
Trading Ltd.
Nanjing
Bengang Steel Sales of
Fully-owned Nanjing Sales 115.00 208.14 100.00% 100.00% Yes
Material Sales steel
Ltd.
Wuxi Bengang Sales of
Fully-owned Wuxi Sales 100.00 93.67 100.00% 100.00% Yes
Steel Sales Ltd. steel
Xiamen
Sales of
Bengang Steel Fully-owned Xiamen Sales 50.00 109.57 100.00% 100.00% Yes
steel
Sales Ltd.
Yantai Bengang Sales of
Fully-owned Yantai Sales 50.00 1,960.03 100.00% 100.00% Yes
Steel Sales Ltd. steel
Tianjin Bengang
Sales of
Steel Trading Fully-owned Tianjin Sales 300.00 3,331.81 100.00% 100.00% Yes
steel
Ltd.
Bengang
Production
Puxiang Cool
Holding Benxi Production 192,000.00 and sales of 101,978.16 75.00% 75.00% Yes 35,337.03 1,344.31
Rolling Steel
steel
Sheet Co., Ltd.
Supplementary remarks on subsidiaries obtained through merger of entities under common control
None
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(3) Subsidiaries procured through merger of entities under different control
In RMB
Balance of other Balance of the owners equity of parent
Minor Amount for deducting
Full name of Ownership Actual items actually Portion co. after deducting of the exceeding part
Reg. Business Registered Business Share minor shareholders
the of the investment at formed net of voting Consolidated shareholders’ of minority shareholders share of loss
Add. property capital Scope proportion % equity in the minor
subsidiary subsidiary year end investment in the rights equity over the share of minority shareholders in
shareholders equity
subsidiaries the owners equity at beginning of year
Supplementary remarks on subsidiaries obtained through merger of entities under different control
None
66
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2. Entities with special purposes or entities on which the Company has controlling power through entrusted
operation or leasing
In RMB
Balance of assets and liabilities recognized in the consolidated
Name Main trades with the Company
financial statements
Other remarks on entities with special purpose or entities under control by entrustment or leasing
None
3. Change of consolidation range
Change of consolidation range:
No change of consolidation range occurred in the report period
[] Applicable; [V] Not applicable
4. Entities included or excluded in the consolidation range in the report period
Subsidiaries, entities with special purpose, or entities on which the Company has controlling power through entrusted operation or
leasing added to the consolidation range in the report period.
In RMB
Name Net asset at end of term Net profit of the current term
Subsidiaries, entities with special purpose, or entities on which the Company has controlling power through entrusted operation or
leasing excluded from the consolidation range in the report period.
In RMB
Net profit from beginning of year
Name Net asset at day of disposal
to the date of disposal
Supplementary statements on entities newly consolidated or eliminated from the consolidation
None
67
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VII. Notes to Items in the Consolidated Financial Statements
1. Monetary fund
In RMB
End of term Beginning of term
Items Amount of Exchange Amount of Exchange
Amount RMB Amount RMB
foreign currency rate foreign currency rate
Cash: -- -- 74,810.28 -- -- 54,902.23
RMB -- -- 74,810.28 -- -- 54,902.23
Bank account: -- -- 2,582,967,748.84 -- -- 4,452,367,572.18
RMB -- -- 1,836,973,116.55 -- -- 4,315,966,647.77
HKD 170,259.00 0.7938 135,151.59 161,090.27 0.7862 126,654.00
USD 121,204,642.51 6.1528 745,747,924.44 22,333,038.54 6.0969 136,162,304.01
EURO 13,289.05 8.3946 111,556.26 13,299.41 8.4189 111,966.40
Other monetary capital -- -- 388,600,000.00 -- -- 122,110,124.42
RMB -- -- 388,600,000.00 -- -- 122,110,124.42
Total -- -- 2,971,642,559.12 -- -- 4,574,532,598.83
Please state individually on accounts under pledge, mortgage, frozen, placed in overseas bank account, or with potential risk of
retrieving
Details of monetary capital under restriction:
Items Closing balance Balance at the beginning of year
Deposit for bank accepted drafts 78,600,000.00 122,110,124.42
Safe deposit for loans 310,000,000.00
Total 388,600,000.00 122,110,124.42
2. Notes receivable
(1) Categories of notes receivable
In RMB
Categories End of term Beginning of term
Bank acceptance 3,370,649,977.15 2,433,550,653.99
Total 3,370,649,977.15 2,433,550,653.99
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(2) Notes receivable under pledge
In RMB
Issuer Date of issue Expired on Amount Remarks
Suzhou Industrial Zone Jingjiang Transformer Co., Ltd. Jan 17 2014 July 17 2014 39,773,500.00
Suzhou Industrial Zone Jingjiang Transformer Co., Ltd. Jan 17 2014 July 17 2014 23,094,859.91
Beijing Shougang Xinganglian Tech & Trade Co., Ltd. Jan 17 2014 July 17 2014 18,630,000.00
Suzhou Industrial Zone Jinyue Metal Product Co., Ltd. Jan 17 2014 July 17 2014 13,920,000.00
Hubei Huitong Industry & Trade Group Co., Ltd. January 20 2014 July 20 2014 11,700,000.00
Total -- -- 107,118,359.91 --
(3) Notes transferred to account receivable for the issuer is not able to execute the liability, and notes
endorsed to other parties but are not mature yet at the end of period
Notes transferred to account receivable due to failure of the issuer
In RMB
Issuer Date of issue Expired on Amount Remarks
Remarks
As of June 30, 2014, there was no notes turned into account receivable due to failure of the issuer to cash the notes.
Notes endorsed to other parties but not due
In RMB
Issuer Date of issue Expired on Amount Remarks
Anyue Auto Material Co., Ltd. May 21, 2014 November 15, 2014 47,600,000.00
Anyue Auto Material Co., Ltd. Feb 19, 2014 August 15, 2014 46,000,000.00
Anyue Auto Material Co., Ltd. April 22, 2014 October 15, 2014 46,000,000.00
Anyue Auto Material Co., Ltd. January 15, 2014 July 15, 2014 44,000,000.00
Anyue Auto Material Co., Ltd. March 20, 2014 September 15, 2014 44,000,000.00
Total -- -- 227,600,000.00 --
Remarks
As of June 30 2014, the Company has notes endorsed to others but not due amounted to RMB5,916,712,653.41.
Remarks on commercial accepted notes already discounted or put into pledge
None
3. Account receivable
(1) Account receivable presented on categories
In RMB
69
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End of term Beginning of term
Categories Book balance Bad debt provision Book balance Bad debt provision
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Receivables provided bad debt provision in groups
Group 1: on age basis 532,266,819.36 100.00% 134,010,612.21 25.18% 488,781,256.15 100.00% 134,010,612.21 27.42%
Sub-total of group 532,266,819.36 100.00% 134,010,612.21 25.18% 488,781,256.15 100.00% 134,010,612.21 27.42%
Total 532,266,819.36 -- 134,010,612.21 -- 488,781,256.15 -- 134,010,612.21 --
Remarks on categories of receivable account
1. Providing of bad debt provision on single receivable account with major amount
Standard for recognition of major amount single account:
Balance of account receivable RMB10 million; other account receivable RMB5 million or over.
Providing method of bad debt provisions on single receivable account with major amount
The impairment test should be assessed individually for each individually significant receivable. If the there is
evidence indicating the receivables have been impaired, the difference between the present value of the future
cash flows and the book value of receivables shall be recognized as bad debt provision and shall be recorded into
the profits and losses at the current period.
2. Providing of bad debt provision by portfolios
Basis of recognition for portfolios
The portfolio: Receivable account with minor amount and tested individually and not impaired
Basis of bad debt provision
Portfolio 1. Age analysis method
Accounts on age basis in the portfolio:
Age Percentage of bad debt for Percentage of bad debt for Other
Accounts receivables (%) receivables (%)
Within 1 yr, (included)
1-2 yrs (included) 5 5
2-3 yrs (included) 20 20
Over 3 yrs 100 100
3. Bad debt provision provided on single receivable account with minor amount:
(1) Reason of providing bad debt individually: concrete evidence showing that the account is irretrievable
(2) Basis of providing bad debt provisions:
When there is solid evidence showing that the possibility of retrieving is minor, the account shall be tested for
impairment individually and bad debt provision shall be provided at the estimated unrecoverable amount.
Receivable accounts with large amount individually and bad debt provisions were provided
[] Applicable; [V] Not applicable
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Account receivable in the portfolio which are provided bad debt provision on age basis
[V] Applicable Not applicable
In RMB
End of term Beginning of term
Age Book balance Book balance
Bad debt provision Bad debt provision
Amount Proportion Amount Proportion
within 1 yr
In which: -- -- -- -- -- --
346,444,898.98 65.09% 302,959,335.77 61.98%
Subtotal of within
346,444,898.98 65.09% 302,959,335.77 61.98%
1 year
1-2 years 50,780,556.00 9.54% 2,539,027.79 50,780,556.00 10.39% 2,539,027.79
2-3 years 4,462,224.95 0.84% 892,444.99 4,462,224.95 0.91% 892,444.99
Over 3 yrs 130,579,139.43 24.53% 130,579,139.43 130,579,139.43 26.72% 130,579,139.43
Total 532,266,819.36 -- 134,010,612.21 488,781,256.15 -- 134,010,612.21
Receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
[] Applicable; [V] Not applicable
Receivable accounts in the portfolio on which bad debt provisions are provided on other basis
[] Applicable; [V] Not applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of period
[] Applicable; [V] Not applicable
(2) Receivable accounts written back or retrieved in the report period
In RMB
Bad debt provision
Description of the receivable Reason to write back Basis of original bad Amount written back or
provided before writing
accounts or retrieve debt provision retrieved
back or retrieving
Bad debt provisions on receivable accounts with single large amount or minor amount but tested individually at end of report period
In RMB
Description of the
Book balance Amount of bad debt Rate Reason
receivable accounts
Remarks on receivable accounts with minor single amount but with greater risks after combining with accounts with similar risks:
None
(3) Receivable accounts actually written off in the report period
In RMB
Name of the Property of the Reason of writing Occurred under
Date of written off Amount written off
companies receivable account off related relationship
Remarks on writing off of receivable accounts
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None
(4) Particulars about the receivable accounts due from shareholders with 5% or over of the Company’s
shares
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
(5) Top 5 debtors in the receivable accounts
In RMB
Relation with the Percentage in total
Name of the companies Amount Ages
Company receivables
within 1
Bengang Group International Trading Ltd. Related parties 78,988,909.33 14.84%
yr
Shenzhen Southern Zhongji East Logistics within 1
Client 57,150,658.89 10.74%
Equipment Co., Ltd. yr
Benxi Steel (Group) Construction Co., Ltd. Related parties 46,711,857.60 1-2 yrs 8.78%
within 1
Baoji Steel Tube Liaoyang Factory Client 35,907,138.36 6.75%
yr
within 1
Huayou Steel Tube Co., Ltd. Client 29,759,297.55 5.59%
yr
Total -- 248,517,861.73 -- 46.70%
(6) Account due from related parties
In RMB
Relation with the Percentage in total
Name of the companies Amount
Company receivables
Bengang Electronics Co., Ltd. Same parent 2,189,939.33 0.41%
Benxi Steel (Group) Machinery Co., Ltd. Same parent 9,181,864.41 1.73%
Benxi Steel (Group) Construction Co., Ltd. Same parent 46,711,857.60 8.78%
Benxi Steel (Group) Industrial Development Co., Ltd. Same parent 22,958,627.95 4.31%
Benxi Steel New Business Development Co., Ltd. Same parent 4,982,838.41 0.94%
Benxi Steel (Group) Medical Co. Ltd. Same parent 870,769.44 0.16%
Benxi Steel (Group) Thermal Power Development Co.,
Same parent 14,700,742.57 2.76%
Ltd.
Bengang Stainless Cool-rolling (Dandong) Co., Ltd. Same parent 5,040,093.51 0.95%
Both under Bengang
Liaoning Hengtong Metallurgy Equipment Co., Ltd. 8,730,342.91 1.64%
Group
Bengang Group International Trading Ltd. Same parent 78,988,909.33 14.84%
Total -- 194,355,985.46 36.52%
(7) Recognition of receivable accounts terminated
In RMB
Items Amount terminated Gain/loss related to termination
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(8) For securitization on receivable accounts, please provide the amount of asset and liability formed by
continuous involving
In RMB
Items End of term
Assets:
Liabilities:
4. Other account receivable.
(1) Other receivable account on categories
In RMB
End of term Beginning of term
Categories Book balance Bad debt provision Book balance Bad debt provision
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Other receivables provided bad debt provision in groups
Group 1: on age basis 244,786,668.28 99.29% 63,311,605.11 25.86% 249,467,735.37 99.31% 63,311,605.11 25.38%
Sub-total of group 244,786,668.28 99.29% 63,311,605.11 25.86% 249,467,735.37 99.31% 63,311,605.11 25.38%
Other account
receivable with minor
individual amount but 1,740,000.00 0.71% 1,740,000.00 0.69%
bad debt provision is
provided
Total 246,526,668.28 -- 63,311,605.11 -- 251,207,735.37 -- 63,311,605.11 --
Remarks on other types of receivable accounts
1. Providing of bad debt provision on single receivable account with major amount
Standard for recognition of major amount single account:
Balance of account receivable RMB10 million; other account receivable RMB5 million or over.
Providing method of bad debt provisions on single receivable account with major amount
The impairment test should be assessed individually for each individually significant receivable. If the there is
evidence indicating the receivables have been impaired, the difference between the present value of the future
cash flows and the book value of receivables shall be recognized as bad debt provision and shall be recorded into
the profits and losses at the current period.
2. Providing of bad debt provision by portfolios
Basis of recognition for portfolios
The portfolio: Receivable account with minor amount and tested individually and not impaired
Basis of bad debt provision
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Portfolio 1. Age analysis method
Accounts on age basis in the portfolio:
Age Percentage of bad debt for Percentage of bad debt for Other
Accounts receivables (%) receivables (%)
Within 1 yr, (included)
1-2 yrs (included) 5 5
2-3 yrs (included) 20 20
Over 3 yrs 100 100
3. Bad debt provision provided on single receivable account with minor amount:
(1) Reason of providing bad debt individually: concrete evidence showing that the account is irretrievable
(2) Basis of providing bad debt provisions:
When there is solid evidence showing that the possibility of retrieving is minor, the account shall be tested for
impairment individually and bad debt provision shall be provided at the estimated unrecoverable amount.
Other receivable accounts with major single amount and bad debt provision drawn upon them
[] Applicable; [V] Not applicable
Other receivable accounts in the portfolio on which bad debt provisions are provided on age basis
[V] Applicable Not applicable
In RMB
End of term Beginning of term
Book balance Book balance
Age
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on on
within 1 yr
In which:
141,553,895.11 57.42% 146,234,962.20 58.22%
Subtotal of within 1 year 141,553,895.11 57.42% 146,234,962.20 58.22%
1-2 years 35,603,591.46 14.44% 1,780,179.57 35,603,591.46 14.17% 1,780,179.57
2-3 years 7,622,195.21 3.09% 1,524,439.04 7,622,195.21 3.03% 1,524,439.04
Over 3 yrs 61,746,986.50 25.05% 60,006,986.50 61,746,986.50 24.58% 60,006,986.50
Total 246,526,668.28 -- 63,311,605.11 251,207,735.37 -- 63,311,605.11
Other receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
[] Applicable; [V] Not applicable
Other receivable accounts in the portfolio on which bad debt provision are provided on other basis
[] Applicable; [V] Not applicable
Other receivable accounts with minor amount but were provided bad debt provisions individually at end of period
[V] Applicable Not applicable
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
In RMB
Description of other receivables Book balance Bad debt provision Rate Reason to provide
Japanese Loan Sinking Fund of Finance Bureau of Benxi 1,740,000.00 sinking fund
Total 1,740,000.00 -- --
(2) Other receivable accounts written back or retrieved in the report period
In RMB
Bad debt provision
Description of other Reason to write back Basis of original bad Amount written back or
provided before writing
receivables or retrieve debt provision retrieved
back or retrieving
Bad debt provisions on other receivable accounts with single large amount or minor amount but tested individually at end of report
period
In RMB
Description of the
Book balance Amount of bad debt Rate Reason
receivable accounts
Other receivable accounts in the portfolio which has minor single amount but with greater risk after combined in the portfolio
None
(3) Other receivable accounts actually written off in the report period
In RMB
Name of the Reason of writing Occurred under related
Property of account Date of written off Amount written off
companies off relationship
Remark on writing off of other receivable accounts
None
(4) Particulars about the other receivable accounts due from shareholders with 5% or over of the
Company’s shares in the report period
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
(5) Natures or contents of other receivable accounts with large amount
In RMB
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Nature or content of the
Name of the companies Amount Percentage in total of other receivables
account
Remarks
None
(6) Top 5 debtors of other receivable accounts
In RMB
Relation with the Percentage in total of other
Name of the companies Amount Ages
Company receivables
within 1
Freight for main clients Client 28,205,578.72 11.44%
yr
Benxi Nanfen Xinhe Metallurgy Material Co., within 1
Client 16,833,029.95 6.83%
Ltd. yr
within 1
Input tax deductible 13,207,522.87 5.36%
yr
Benxi Steel (Group) Real-estate Development within 1
Related parties 9,895,021.87 4.01%
Co., Ltd. yr
Benxi Juyuan Slag and Furnance Burden Co., within 1
Supplier 7,786,024.94 3.16%
Ltd. yr
Total -- 75,927,178.35 -- 30.80%
(7) Other accounts receivable from related parties
In RMB
Relation with the Percentage in total of other
Name of the companies Amount
Company receivables
Benxi Steel (Group) Real-estate Development Co.,
Same parent 9,895,021.87 4.01%
Ltd.
Benxi Steel (Group) Construction & Repairing Co.,
Same parent 972,504.93 0.39%
Ltd.
Liaoning Metallurgy Technician College Same parent 153,801.70 0.06%
Bengang Stainless Cool-rolling (Dandong) Co., Ltd. Same parent 931,539.78 0.38%
Benxi Steel (Group) Construction Co., Ltd. Same parent 1,479,007.18 0.60%
Total -- 13,431,875.46 5.44%
(8) Termination of other receivable accounts
In RMB
Items Amount terminated Gain/loss related to termination
(9) For securitization on other receivable accounts, please provide the amount of asset and liability formed
by continuous involving
In RMB
Items End of term
Assets:
Liabilities:
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(10) Government subsidy not recognized upon amount
In RMB
Remarks on not
Name of the Title of the Closing Age at end Expected received at expected
Expected amount Expected basis
companies projects balance of period retrieving date date or amount (if
any)
5. Prepayment
(1) Prepayment presented by ages:
In RMB
End of term Beginning of term
Age
Amount Proportion Amount Proportion
within 1 yr 1,059,936,224.78 93.66% 978,007,713.62 92.52%
1-2 years 45,544,414.58 4.02% 52,516,203.13 4.97%
2-3 years 26,174,063.36 2.32% 26,533,886.74 2.51%
Total 1,131,654,702.72 -- 1,057,057,803.49 --
Remarks on ages of prepayment
None
(2) Top 5 receivers of prepayments
In RMB
Relation with the Reason of
Name of the companies Amount Date
Company unsettled
within 1
Benxi Beiying Steel & Iron (Group) Co., Ltd. Related parties 446,432,092.92 Prepaid for goods
yr
within 1
Benxi Steel (Group) Machinery Co., Ltd. Related parties 73,251,348.35 Prepaid for goods
yr
within 1
Liaoning Hengtai Heavy Machine Co., Ltd. Related parties 53,429,155.54 Freight prepaid
yr
Dalian Zhongtie Waifu International Cargo Agency Co., within 1
Supplier 40,473,562.26 Prepaid for goods
Ltd. yr
within 1
Northern Heavy Industry Group Co., Ltd. Supplier 38,049,737.87 Prepaid for goods
yr
Total -- 651,635,896.94 -- --
Remarks on main entities involved in the prepayment
None
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(3) Prepayment received by shareholding parties holding 5% or above of the Company’s shares in the
report period
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
(4) Statements on prepayments
None
6. Inventories
(1) Categories of inventory
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Raw materials 7,488,903,829.49 5,269,277.73 7,483,634,551.76 7,815,569,720.53 5,269,277.73 7,810,300,442.80
Product in process 1,295,974,256.83 47,959,656.56 1,248,014,600.27 1,020,712,415.24 43,964,098.09 976,748,317.15
Products in stock 3,290,176,775.90 47,381,095.80 3,242,795,680.10 2,845,882,180.57 25,883,395.38 2,819,998,785.19
11,974,444,832.1 11,682,164,316.3 11,607,047,545.1
Total 12,075,054,862.22 100,610,030.09 75,116,771.20
3 4 4
(2) Inventory impairment provision
In RMB
Opening balance of Decreased this period Closing balance of
Categories Provided this term
book value Written back Transferred book value
Raw materials 5,269,277.73 5,269,277.73
Product in process 43,964,098.09 47,959,656.56 43,964,098.09 47,959,656.56
Products in stock 25,883,395.38 43,581,413.36 22,083,712.94 47,381,095.80
Total 75,116,771.20 91,541,069.92 66,047,811.03 100,610,030.09
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(3) Inventory impairment provisions
Percentage of amount written
Basis of providing impairment
Items Reason of written back back in the balance of the
provision
inventory at end of report term
Net realizable value is lower
Raw materials
than cost at the year end
Net realizable value is lower
Products in stock
than cost at the year end
Net realizable value is lower
Product in process
than cost at the year end
Remarks on inventories
None
7. Other current assets
In RMB
Items End of term Beginning of term
Prepaid income tax 226,518,663.35 224,400,218.03
VAT and input tax to be deducted 38,634,938.51 108,668,264.64
Short-term bank financial products 570,000,000.00 530,000,000.00
Total 835,153,601.86 863,068,482.67
Remarks on other current assets
RMB570,000,000.00 of short-term bank financial product was the principal-safe financial product the Company
purchased from a large scale bank.
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8. Long-term equity investment
(1) Details of long-term equity investment
In RMB
Statement on
Cash
Voting differences Impairment
Percentage of dividend
Company Calculating Investment Opening Closing power between the Impairment provision
Changed by share in the of the
invested in basis cost balance balance in the shareholding provision provided
firm % current
firm % and voting this term
term
rights
Zhejiang
Bengang
Jingrui
Cost basis 1,843,800.00 1,967,605.63 1,967,605.63% 20.00% 20
Steel
Processing
Ltd.
Tianjin
Bengang
Longxing
Cost basis 3,888,980.00 -3,888,980.00 3,888,980.00%
Steel
Processing
Co., Ltd.
China Steel
Shanghai
Steel Cost basis 10,058,250.00 14,414,693.00 14,414,693.00% 15.00% 15
Processing
Co., Ltd.
Suzhou
Bengang
Cost basis 3,888,980.00 3,888,980.00 3,888,980.00% 20.00% 20
Industrial
Co., Ltd.
Total -- 15,791,030.00 20,271,278.63 0.00 -- -- --
(2) Constrains on the ability to transfer capital to invested entities
In RMB
Constrains on the ability to transfer capital Accumulated investment loss not
Causation of constrain
to long-term invested entities recognized
Statement on long-term equity investment
In June 2014, the Company withdrew the investment in Tianjin Bengang Longxing Steel Processing Co., Ltd. and
invested to Suzhou Bengang Industrial Co., Ltd. This has caused change in long-term investment.
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9. Fixed assets
(1) Particulars of fixed assets
In RMB
Opening balance of book Decreased this Closing balance of book
Items Increased this period
value period value
I. Total of original book value 43,747,084,702.29 12,554,242.33 7,767,439.30 43,751,871,505.32
Incl. House & Buildings 10,163,036,952.77 10,163,036,952.77
Equipment & machinery 32,806,009,991.69 9,670,809.77 2,141,063.00 32,813,539,738.46
Transportation facilities 778,037,757.83 2,883,432.56 5,626,376.30 775,294,814.09
Opening balance of book Increased this Provided current Decreased this Balance at end of current
--
value term term period term
II. Total of accumulative depreciation 25,161,739,663.59 1,045,357,820.05 5,980,113.41 26,201,117,370.23
Incl. House & Buildings 3,772,402,251.90 256,804,570.55 0.00 4,029,206,822.45
Equipment & machinery 20,850,451,462.16 783,377,018.25 2,045,695.94 21,631,782,784.47
Transportation facilities 538,885,949.53 5,176,231.25 3,934,417.47 540,127,763.31
Opening balance of book Balance at end of current
-- --
value term
III. Total of net book value of fixed
18,585,345,038.70 -- 17,550,754,135.09
assets
Incl. House & Buildings 6,390,634,700.87 -- 6,133,830,130.32
Equipment & machinery 11,955,558,529.53 -- 11,181,756,953.99
Transportation facilities 239,151,808.30 -- 235,167,050.78
IV. Total of impairment provisions 10,759,140.50 -- 10,759,140.50
Incl. House & Buildings 8,208,087.85 -- 8,208,087.85
Equipment & machinery 2,551,052.65 -- 2,551,052.65
V. Total of fixed asset book value 18,574,585,898.20 -- 17,539,994,994.59
Incl. House & Buildings 11,953,007,476.88 -- 11,179,205,901.34
Equipment & machinery 239,151,808.30 -- 235,167,050.78
Depreciation of RMB1,045,357,820.05 in the report period; RMB0.00 transferred from construction-in-process to fixed asset.
(2) Fixed assets temporarily in idle status
In RMB
Accumulated Impairment
Items Original book value Net book value Remarks
depreciation: provision
(3) Fixed assets leased by finance
In RMB
Items Original book value Accumulated depreciation: Net book value
(4) Fixed assets leased out on finance
In RMB
Categories Closing book value
Houses & buildings 66,713,537.45
Equipment & machinery 188,060.02
Transportation facilities 648,622.05
Total 67,550,219.52
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(5) Fixed assets held for sale at end of period
In RMB
Predicted disposal
Items Book value fair value Predicted disposal date
expense
(6) Fixed asset not licensed yet
Items Reason for not granted Expected date of grant
To be granted collectively
Houses & buildings End of 2014
Transportation equipment In process End of 2014
Remarks on fixed assets
None
10. Construction-in-process
(1) Particulars of construction-in-process
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Information system project 167,949,416.58 167,949,416.58 156,219,564.98 156,219,564.98
Environmental reconstruction of converter and the
488,799,469.70 488,799,469.70 405,650,141.41 405,650,141.41
180t dephosphorization converter
Silicon steel project 116,421,367.56 116,421,367.56 53,358,988.04 53,358,988.04
Production line of electro-galvanized steel plates
877,043,761.09 877,043,761.09 829,925,042.45 829,925,042.45
for automobile
Reconstruction of hot-rolling equipment 166,365,090.63 166,365,090.63 43,264,624.71 43,264,624.71
Cool rolling high strength steel rebuilding 635,177,260.52 635,177,260.52 533,932,725.27 533,932,725.27
The new energy control center project 201,319,709.05 201,319,709.05 181,556,953.92 181,556,953.92
Reconstruction of dry-cooling of No.2 Coke
795,226,537.11 795,226,537.11 556,686,016.04 556,686,016.04
Workshop
450 M2 sintering machine 157,397,657.66 157,397,657.66 87,271,107.06 87,271,107.06
360 M2 sintering machine desulfidation 46,502,038.65 46,502,038.65 43,919,153.52 43,919,153.52
New construction of warehouse 63,945,781.36 63,945,781.36 37,219,572.64 37,219,572.64
Softening water supplying project 54,107,274.41 54,107,274.41 36,521,515.80 36,521,515.80
Reconstruction of South Gate of Transportation
34,052,309.97 34,052,309.97 23,920,372.94 23,920,372.94
Dept.
Continuous annealling furnace 23,047,956.06 23,047,956.06 23,047,956.06 23,047,956.06
Other small projects 53,755,563.26 53,755,563.26 24,319,153.11 24,319,153.11
Environmental reengineering 14,286,057.17 14,286,057.17 7,884,676.98 7,884,676.98
High-pressure milling project of Liaoyang Iron
20,311,749.41 20,311,749.41 19,957,275.07 19,957,275.07
Ore
Dalian Benruitong project 6,035,783.81 6,035,783.81 6,028,027.40 6,028,027.40
No.1 galvanization line of Bengang Puxiang
2,092,921.82 2,092,921.82 2,142,921.82 2,142,921.82
Cool-rolling
Total 3,923,837,705.82 3,923,837,705.82 3,072,825,789.22 3,072,825,789.22
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(2) Material change in construction-in-progress
In RMB
Transferred Portion of Including: interest Capitalization
Beginning of Increased this Other Accumulate of
Projects Budget into fixed investment on Progress capitalized this ratio of current Fund recourse End of term
term period decreases interest capitalized
assets budget term period
independent
Information system project 390,380,000.00 156,219,564.98 11,729,851.60 0.00 0.00 84.00% 90 19,752,808.87 4,557,220.74 5.40% 167,949,416.58
and borrowed
Environmental reconstruction
independent
of converter and the 180t 1,617,904,000.00 405,650,141.41 83,149,328.29 0.00 0.00 86.00% 90 91,683,987.40 11,513,449.35 5.40% 488,799,469.70
and borrowed
dephosphorization converter
Production line of
independent
electro-galvanized steel plates 807,590,000.00 829,925,042.45 47,118,718.64 0.00 0.00 109.00% 90 105,270,316.76 7,820,837.89 5.40% 877,043,761.09
and borrowed
for automobile
Cool rolling high strength independent
6,609,070,000.00 533,932,725.27 101,244,535.25 0.00 0.00 10.00% 20 32,931,713.72 19,364,614.63 5.40% 635,177,260.52
steel rebuilding and borrowed
The new energy control independent
284,100,000.00 181,556,953.92 19,762,755.13 0.00 0.00 77.00% 85 18,194,917.84 5,119,002.97 5.40% 201,319,709.05
center project and borrowed
Reconstruction project of
independent
coke dry cooling of No.2 1,109,434,000.00 556,686,016.04 238,540,521.07 0.00 0.00 72.00% 75 36,768,273.31 20,461,056.86 5.40% 795,226,537.11
and borrowed
Coke Workshop
independent
450 M2 sintering machine 792,740,000.00 87,271,107.06 70,126,550.60 0.00 0.00 20.00% 25 2,835,099.00 2,835,099.00 5.40% 157,397,657.66
and borrowed
360 M2 sintering machine independent
62,350,000.00 43,919,153.52 2,582,885.13 0.00 0.00 75.00% 80 4,532,181.37 1,845,906.28 5.40% 46,502,038.65
desulfidation and borrowed
Silicon steel project 802,340,000.00 53,358,988.04 63,062,379.52 0.00 0.00 85.00% 90 0.00 0.00 Independent 116,421,367.56
Reconstruction of hot-rolling
259,760,000.00 43,264,624.71 123,100,465.92 0.00 0.00 64.00% 80 0.00 0.00 Independent 166,365,090.63
equipment
Total 12,735,668,000.00 2,891,784,317.40 760,417,991.15 0.00 0.00 -- -- 311,969,298.27 73,517,187.72 -- -- 3,652,202,308.55
Remarks on changes of the construction-In-process
(3) Impairment provisions of construction-in-process
In RMB
Decreased this
Items Beginning of term Increased this period End of term Reason to provide
period
(4) Progress of material construction-in-process
Items Progress Remarks
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(5) Statement on construction-in-process
There is no Construction in progress used as mortgage or guarantee at the year end.
There is no evidence that Construction in progress has impaired at the year end.
11. Project material
In RMB
Increased this Decreased this
Items Beginning of term End of term
period period
Special equipment 7,821,295.85 54,471,426.71 47,413,799.64 14,878,922.92
Total 7,821,295.85 54,471,426.71 47,413,799.64 14,878,922.92
Remarks on project material
the ending balance of construction materials has increased by RMB7,057,627.07 compared with the beginning balance with the
increase rate of 90.24%, which is caused by increase of purchase of the construction materials but not delivered.
12. Intangible assets
(1) Profiles of intangible assets
In RMB
Opening balance of book Increased this Decreased this Closing balance of book
Items
value period period value
I. Total of original book value 131,079,959.79 165,306,864.40 296,386,824.19
Land using right 130,938,450.36 165,306,864.40 296,245,314.76
Office soft application 141,509.43 141,509.43
II. Total of accumulative amortizing 18,987,797.26 1,316,459.95 20,304,257.21
Land using right 18,987,797.26 1,302,309.01 20,290,106.27
Office soft application 14,150.94 14,150.94
III. Total of book net value of
112,092,162.53 163,990,404.45 276,082,566.98
intangible assets
Land using right 111,950,653.10 164,004,555.39 275,955,208.49
Office soft application 141,509.43 -14,150.94 127,358.49
Land using right
Office soft application
Total of book value of intangible
112,092,162.53 163,990,404.45 276,082,566.98
assets
Land using right 111,950,653.10 164,004,555.39 275,955,208.49
Office soft application 141,509.43 -14,150.94 127,358.49
Amortized this period is RMB.
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(2) R&D expenses
In RMB
Decreased this period
Accounted into
Items Beginning of term Increased this period Recognized as End of term
current income
intangible asset
account
Percentage in total amount of R&D
Intangible asset formed by internal R&D of the period accounted for 18.25% of the total book value of intangible assets.
Remarks on R&D projects, including those with single value over RMB1 million and booked at their evaluation value, please
provide the name of the evaluation agency and the method of evaluation
None
13. Deferred income tax asset and deferred income tax liabilities
(1) Deferred income tax assets and liabilities are not presented as net amount after neutralization
Deferred income tax assets and liabilities already recognized
In RMB
Items End of term Beginning of term
Deferred income tax assets:
Asset impairment provision 77,172,846.98 70,799,532.26
Difference of depreciation or amortizing 83,494,714.76 83,494,714.76
Welfare for retired employee 2,279,353.72 3,361,065.94
Employee wages payable 16,302,618.68 14,596,990.86
Internal profit unrealized 10,979,553.14 12,534,738.09
Sub-total 190,229,087.28 184,787,041.91
Deferred income tax liabilities:
Sub-total 0.00 0.00
Details of un-recognized deferred income tax assets
In RMB
Items End of term Beginning of term
Neutralizable losses 1,013,961,307.01 1,213,572,465.70
Total 1,013,961,307.01 1,213,572,465.70
Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
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Year End of term Beginning of term Remarks
2014 578,751,260.60 778,362,419.29
2015
2016 572,740.87 572,740.87
2017 409,291,434.25 409,291,434.25
2018 25,345,871.29 25,345,871.29
Total 1,013,961,307.01 1,213,572,465.70 --
Details of taxable differences and deductible differences
In RMB
Amount of temporary differences
Items
At end of term At beginning of term
Differences in taxable items
Neutralizable different items
Impairment provision 308,691,387.91 283,198,129.02
Difference of depreciation or amortizing 333,978,859.04 333,978,859.03
Welfare for retired employee 9,117,414.86 13,444,263.74
Employee wages payable 65,210,474.72 58,387,963.44
Internal profit unrealized 43,918,212.54 50,138,952.36
Sub-total 760,916,349.07 739,148,167.59
(2) Deferred income tax assets and liabilities are presented as net amount after neutralization
Composition items of income tax asset and liabilities after neutralization
In RMB
Deductible or taxable Deductible or taxable
Deferred income tax Deferred income tax
provisional provisional
asset or liability after asset or liability after
Items difference after difference after
neutralizing at end of neutralizing at end of
neutralizing at end of neutralizing at end of
report period report period
report period report period
Deferred income tax asset 190,229,087.28 184,787,041.91
Deferred income tax liability 0.00 0.00
Details of deferred income tax asset and liabilities neutralized
In RMB
Items Amount neutralized this period
Remarks on deferred income tax assets and deferred income tax liabilities
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14. Detail of asset impairment provision
In RMB
Opening balance of Increased this Decreased this period Closing balance of
Items
book value period Written back Transferred book value
I. Bad debt provision 197,322,217.32 197,322,217.32
II. Inventory impairment
75,116,771.20 91,541,069.92 66,047,811.03 100,610,030.09
provision
VII. Fixed asset impairment
10,759,140.50 10,759,140.50
provision
Total 283,198,129.02 91,541,069.92 0.00 66,047,811.03 308,691,387.91
Remarks on detailed asset impairment
None
15. Short-term loans
(1) Categories of short-term loans
In RMB
Items End of term Beginning of term
Guarantee loan 9,527,232,800.00 6,672,244,700.00
Credit loan 6,297,139,968.00 7,570,365,996.91
Total 15,824,372,768.00 14,242,610,696.91
Remarks on categories of short-term loans
None
(2) Short-term loans expired but not repaid
In RMB
Loan provided by Amount of loan Interest rate Usage of loan Reason of overdue Scheduled repaying date
Amount repaid after the balance sheet day was RMB0.00.
Remarks on short-term loans, provide terms and new mature date if already became mature and extended.
There was no short-term loans expired but not repaid up to June 30, 2014.
16. Notes payable
In RMB
Categories End of term Beginning of term
Bank acceptance 485,810,215.17 153,175,292.90
Total 485,810,215.17 153,175,292.90
Amount due in next fiscal period is RMB485,810,215.17
Remarks on notes payable
The amount of notes payable increased RMB332,634,922.27 and 56.12% due to increase of payment by notes payable for
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
goods.
17. Account payable
(1) Account payable
In RMB
Items End of term Beginning of term
Within 1 yr, (included) 4,959,499,958.07 6,764,277,500.39
1-2 yrs (included) 274,316,451.17 348,342,774.09
2-3 yrs (included) 70,659,772.02 71,743,092.73
Over 3 yrs 243,547,274.93 255,964,900.14
Total 5,548,023,456.19 7,440,328,267.35
(2) Account payable to shareholders holding 5% or over of the Company’s shares in the report period
In RMB
Name of the companies End of term Beginning of term
(3) Remarks on large amount payable accounts aged for over one year
Name of the companies Closing balance Reason of not transferred Remarks
Jixi Huasheng Fengyuan Coal Selection Co., Ltd. 71,275,916.07 Contract not completed
Zhongye Saidi Engineering Co., Ltd. 51,339,193.24 Not cleared yet
Qitaihe Tenglong Coal Trade Co., Ltd. 27,960,592.79 Not cleared yet
18. Accounts received in advance
(1) Advance payment received
In RMB
Items End of term Beginning of term
Within 1 yr, (included) 3,140,827,957.95 2,567,195,682.72
1-2 yrs (included) 49,038,110.09 50,341,967.04
2-3 yrs (included) 24,330,118.15 26,279,817.84
Over 3 yrs 20,024,785.35 21,650,757.21
Total 3,234,220,971.54 2,665,468,224.81
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(2) Prepayment collected from shareholders holding 5% or over of the Company’s shares in the report
period.
In RMB
Name of the companies End of term Beginning of term
(3) Remarks on large amount advance payment received aged for over one year
None
19. Wage payable
In RMB
Opening balance of Closing balance of book
Items Increased this period Decreased this period
book value value
I. Wage, bonus,
60,923,311.05 759,334,787.36 760,476,099.18 59,781,999.23
allowances
II. Employees
0.00 11,983,594.17 11,983,594.17 0.00
welfare
III. Social security 663,607.94 222,487,663.43 222,487,663.43 663,607.94
Incl. Medical
0.00 54,197,175.88 54,197,175.88 0.00
insurance
Basic pension 0.00 151,784,703.47 151,784,703.47 0.00
Annual fee 0.00 0.00 0.00 0.00
Unemployment
0.00 7,401,946.28 7,401,946.28 0.00
insurance
Labor injury
663,607.94 9,101,579.37 9,101,579.37 663,607.94
insurance
Breeding insurance 0.00 2,258.43 2,258.43 0.00
IV. Housing fund 6,851,033.00 64,226,444.40 64,933,664.40 6,143,813.00
VI. Others 16,349,013.56 17,007,569.49 21,234,721.76 12,121,861.29
Total 84,786,965.55 1,075,040,058.85 1,081,115,742.94 78,711,281.46
Overdue payment payable to employees are amounted to RMB0.00
RMB0.00 of trade union fee and employee education fee, RMB0.00 of non-monetary welfare, RMB0.00 of compensation for
dismissing of employment.
Arrangement for the payment to employees
None
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20. Tax payable
In RMB
Items End of term Beginning of term
VAT 3,683,163.91 4,682,455.84
Operational tax 353,685.95 338,018.07
Enterprise income tax 11,131,739.47 15,372,684.40
City maintenance and construction tax 6,837,259.07 1,325,934.36
Others 7,293,127.13 7,521,455.38
Total 29,298,975.53 29,240,548.05
Remarks on tax payable. In case it was approved by the tax authority to neutralize the taxable income among the subsidiaries or
branch factories, please provide the calculation formula.
None
21. Interest payable
In RMB
Items End of term Beginning of term
Short-term borrowing interests payable 32,787,514.64 24,854,193.88
Total 32,787,514.64 24,854,193.88
Remarks on interest payable
Interest payable was the interest on loans to be repaid on expiration.
22. Dividend payable
In RMB
Name of the companies End of term Beginning of term Reason of overdue for one year
Dividend payable 156,800,000.00
Total 156,800,000.00 0.00 --
Remark on dividend payable
It was approved at the Shareholders Meeting 2013 held on May 20 2014, that basing on the total capital shares of 3,136,000,000
shares at end of 2013, RMB0.5 (tax included) of cash dividend were to be distributed to each 10 shares and all shareholders. Totally
RMB156,800,000.00 were to be distributed on July 11.
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23. Other account payable.
(1) Other accounts payable
In RMB
Items End of term Beginning of term
Within 1 yr, (included) 298,837,971.87 360,417,131.17
1-2 yrs (included) 55,822,784.17 69,985,813.18
2-3 yrs (included) 11,171,254.58 12,923,859.11
Over 3 yrs 40,444,329.71 42,252,305.88
Total 406,276,340.33 485,579,109.34
(2) Other account payable due to shareholders with 5% or over of the Company’s shares in the report
period
In RMB
Name of the companies End of term Beginning of term
Benxi Steel (Group) Co., Ltd. 61,947,389.31 141,981,771.59
Total 61,947,389.31 141,981,771.59
(3) Statement on large amount other payable accounts due for over one year
Name of the companies Closing balance Reason of unpaid Remarks
Guangzhou Benjin Electronic & Machinery 13,088,825.00 Not cleared yet
Equipment Co., Ltd.
(4) Statement on large amount other payable accounts
Name of the companies Closing balance Description Remarks
Benxi Steel (Group) Co., Ltd. 61,947,389.31 Current account
Letter of credit by Industrial Bank 20,000,000.00 L/C
Benxi Steel (Group) Construction Co., Ltd. 25,190,424.63 Current account
Guangzhou Benjin Electronic & Machinery 13,088,825.00 Trade
Equipment Co., Ltd.
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24. Non-current liabilities due in one year
(1) Non-current liabilities due in one year
In RMB
Items End of term Beginning of term
Long-term loans due in 1 year 437,900,000.00 1,163,814,681.99
Total 437,900,000.00 1,163,814,681.99
(2) Long-term loans due in 1 year
Long-term loans due in 1 year
In RMB
Items End of term Beginning of term
Guarantee loan 226,304,681.99
Credit loan 437,900,000.00 937,510,000.00
Total 437,900,000.00 1,163,814,681.99
Among the long-term loans due in 1 year, the loans overdue but extended is amounted to RMB.
Top 5 long-term loans due in 1 year
In RMB
End of term Beginning of term
Commence Terminate Interest Amount of
Loan provided by Currency Amount of original Amount of foreign Amount of original
date date rates foreign
currency currency currency
currency
China Agriculture Bank June 13, RMB
June 12, 2015 6.15% 200,000,000.00
Benxi Branch 2012 Yuan
China Industrial &
September 24 RMB
Commerce Bank Benxi May 24 2011 6.65% 127,000,000.00
2014 Yuan
Branch
China Industrial &
January 21 RMB
Commerce Bank Benxi July 21, 2014 6.40% 36,250,000.00
2011 Yuan
Branch
China Industrial &
January 21 January 20 RMB
Commerce Bank Benxi 6.40% 36,250,000.00
2011 2015 Yuan
Branch
China Industrial &
January 31 January 20 RMB
Commerce Bank Benxi 6.55% 19,240,000.00
2008 2015 Yuan
Branch
National Development April 26
April 6 2014 USD 3.71% 29,000,000.00 176,810,100.00
Bank Liaoning Branch 2011
National Development April 26
April 6 2014 USD 3.71% 25,000,000.00 152,422,500.00
Bank Liaoning Branch 2011
RMB
CCB Bengang Branch Apr 30 2007 Apr 29 2014 5.94% 130,000,000.00
Yuan
National Development
May 26 2011 April 6 2014 USD 3.71% 21,000,000.00 128,034,900.00
Bank Liaoning Branch
China Industrial &
September 24 RMB
Commerce Bank Benxi May 24 2011 6.65% 127,000,000.00
2014 Yuan
Branch
Total -- -- -- -- -- 418,740,000.00 -- 714,267,500.00
Overdue account in long-term loans due in one year
In RMB
Annual interest Reason for Scheduled
Loan provided by Total Amount Date of mature Usage of loan
rate overdue repaying date
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RMB0.0 repaid after the balance sheet day.
Remarks on long-term loans due in 1 year
N/A
(3) Bonds payable due in 1 year
In RMB
Interest Interest
Interest
Date of Issuing payable at Interest paid payable at Closing
Bond Face value Bond term occurred
issue amount beginning this period end of balance
this period
of period period
Remarks on payable bonds due in 1 year
N/A
(4) Long-term payable account due in 1 year
In RMB
Loans from Term Initial amount Interest rates Interest payable Closing balance Condition
Remarks on long-term payable account due in 1 year
N/A
25. Long-term loans
(1) Categories of long-term loans
In RMB
Items End of term Beginning of term
Guarantee loan 108,446,646.59 164,676,892.70
Credit loan 418,500,000.00 580,990,000.00
Total 526,946,646.59 745,666,892.70
Remarks on categories of long-term loans
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(2) Top 5 long-term loans
In RMB
End of term Beginning of term
Commence Terminate Interest
Loan provided by Currency Amount of Amount of original Amount of Amount of original
date date rates
foreign currency currency foreign currency currency
China Agriculture Bank June 13,
June 12, 2015 RMB 6.15% 200,000,000.00
Benxi Branch 2012
China Industrial &
January 13,
Commerce Bank Benxi May 22 2016 RMB 6.90% 126,000,000.00 126,000,000.00
2012
Branch
Benxi Commercial Bank
Dec 21 2012 Nov 20 2015 RMB 5.54% 90,000,000.00 90,000,000.00
Nandi Branch
China Industrial &
September 24
Commerce Bank Benxi May 24 2011 RMB 6.65% 73,000,000.00 73,000,000.00
2015
Branch
Benxi Commercial Bank September 20
Dec 28, 2012 RMB 5.54% 58,100,000.00 70,550,000.00
Nandi Branch 2015
China Industrial &
January 13, September 24
Commerce Bank Benxi RMB 6.40% 54,000,000.00
2012 2015
Branch
Total -- -- -- -- -- 401,100,000.00 -- 559,550,000.00
Remarks on long-term loans. For long-term loans formed by extending of overdue loans, the conditions, amount of principal, interest,
and expected date of return
26. Other non-current liabilities
In RMB
Closing balance of book Opening balance of book
Items
value value
Desulfuration project of 220t/h furnace 2,400,000.00 2,400,000.00
MES project fund 8,600,000.00 8,600,000.00
Environment treatment project of Benxi City 1,620,000.00 1,620,000.00
Second batch of Funding for National Cleaned Manufacture
3,200,000.00 3,200,000.00
Demonstration Project
Subsidiary for industrial energy control center demonstration project 11,600,000.00 11,600,000.00
Environment Pollution Renovation Project 10,956,000.00 10,456,000.00
Environment Renovation Project and Regional Basin Environment
1,940,000.00 1,940,000.00
Protection Project
Energy-saving Technological Transformation Fiscal Reward Project 11,816,000.00 11,816,000.00
3 government technology financing funds 864,224.00 864,224.00
Cool rolling high strength steel rebuilding 200,000,000.00 200,000,000.00
desulfuration project of 2*265 square meter burning line 3,000,000.00 3,000,000.00
Water treatment project of 2*265 square meter burning line 10,140,000.00 10,140,000.00
Reconstruction of dust remover of the 360m3 burning line 180,000.00 180,000.00
The 2nd batch of science and tech projects of Liaoning province 1,000,000.00 1,000,000.00
Automobile High-class Electrolytic Zinc Steel Plate Production Line
41,040,000.00 41,040,000.00
Project
Heat recycling and disulfuration project of the burning line 17,860,000.00 17,860,000.00
Water treatment factory reconstruction project 6,000,000.00 6,000,000.00
Fund for introducing of overseas R&D team 17,850,002.00 4,500,000.00
Total 350,066,226.00 336,216,224.00
Remarks on other non-recurring liabilities
1. Environment Pollution Renovation Project: According to document 本环发[2013]85 号 issued by the local government, the
Company has received the government subsidy of RMB500 thousand from Benxi Bureau of Finance, which will be used in
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
disulfuration project of the coke factory.
2. Overseas R&D Team Introduction Funding:
1) According to document 辽财指企[2013]1084 号, the Company has received RMB12.41 million from Liaoning Provincial
Department of Finance, which will be used on introduction of electrogalvanizing technology and technical reconstruction of 1700mm
line.
2) According to the document 辽外专函[2013]137 号 issued by Liaoning Provincial Bureau of Foreign Experts, and document 辽
人社[2013]271 号 issued collectively by Liaoning HR and Social Security Department, Liaoning Development and Reformation
Commission, Liaoning Economic and Information Technology Commission, Liaoning Science & Technologies Bureau, and Liaoning
Department of Finance, the Company has received RMB1 million from the authority, which will be used in developing of dual-phase
steel product and high strength automobile steel.
Liability projects involved in government subsidy
In RMB
Opening New subsidy in Amount transferred to Other Closing Asset-related or
Liability projects
balance current period non-operational income changes balance income-related
Desulfuration project of 220t/h furnace 2,400,000.00 2,400,000.00 Asset-related
MES project fund 8,600,000.00 8,600,000.00 Asset-related
Environment treatment project of Benxi
1,620,000.00 1,620,000.00 Asset-related
City
Second batch of Funding for National
Cleaned Manufacture Demonstration 3,200,000.00 3,200,000.00 Asset-related
Project
Subsidiary for industrial energy control
11,600,000.00 11,600,000.00 Asset-related
center demonstration project
Environment Pollution Renovation
10,456,000.00 500,000.00 10,956,000.00 Asset-related
Project
Environment Renovation Project and
Regional Basin Environment Protection 1,940,000.00 1,940,000.00 Asset-related
Project
Energy-saving Technological
11,816,000.00 11,816,000.00 Asset-related
Transformation Fiscal Reward Project
3 government technology financing funds 864,224.00 864,224.00 Income related
Cool rolling high strength steel rebuilding 200,000,000.00 200,000,000.00 Asset-related
desulfuration project of 2*265 square
3,000,000.00 3,000,000.00 Asset-related
meter burning line
Water treatment project of 2*265 square
10,140,000.00 10,140,000.00 Asset-related
meter burning line
Reconstruction of dust remover of the
180,000.00 180,000.00 Asset-related
360m3 burning line
The 2nd batch of science and tech
1,000,000.00 1,000,000.00 Income related
projects of Liaoning province
Automobile High-class Electrolytic Zinc
41,040,000.00 41,040,000.00 Asset-related
Steel Plate Production Line Project
Heat recycling and disulfuration project
17,860,000.00 17,860,000.00 Asset-related
of the burning line
Water treatment factory reconstruction
6,000,000.00 6,000,000.00 Asset-related
project
Fund for introducing of overseas R&D
4,500,000.00 13,410,000.00 59,998.00 17,850,002.00 Income related
team
Total 336,216,224.00 13,910,000.00 59,998.00 350,066,226.00 --
27. Capital Share
In RMB Yuan
Changed in the report period (+,-)
Beginning of
Issuing of new Bonus Transferred from End of term
term Others Sub-total
shares shares reserves
Total of capital
3,136,000,000.00 3,136,000,000.00
shares
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Remarks on change of share capital. If there is change in capital in the report period, name of CPA and No. of Verification Report
shall be provided; for shareholding companies operated for less than three years, only net asset need to be provided for years before
establishing; for shareholding companies transformed from private limited companies, particulars about capital verification shall be
provided.
28. Special reserves
Statement on special reserves
Items Opening balance Increased Decreased Closing balance
Production safety expenses 210,972.68 17,569,715.43 9,408,331.32 8,372,356.79
Total 210,972.68 17,569,715.43 9,408,331.32 8,372,356.79
These are the production safety expenses provided by the Company according to document 财企[2012]16 号.
29. Capital reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Capital premium (share capital
8,998,928,073.23 8,998,928,073.23
premium)
Other capital reserves 115,917,468.82 115,917,468.82
Total 9,114,845,542.05 9,114,845,542.05
Remarks on capital reserves
30. Surplus reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Statutory surplus reserves 956,694,103.74 956,694,103.74
Total 956,694,103.74 956,694,103.74
Remarks on surplus reserves. Related resolutions shall be provided if surplus reserves were used in capitalizing, making up losses, or
dividend.
31. Retained profit
In RMB
Percentage of drawing or
Items Amount
allocation
Retained profit adjusted at beginning of year 2,100,587,079.16 --
Plus: Net profit attributable to owners of the
173,894,309.64 --
parent company
Common share dividend payable 156,800,000.00
Retained profit at the end of term 2,117,681,388.80 --
Details about adjustment of retained profit at beginning of year:
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1) Retrospective adjustment according to the Enterprise Accounting Standard and regulations has influenced the retained profit at
beginning of year by RMB0.00.
2) Change of accounting standard has influenced the retained profit at beginning of year by RMB0.00.
3) Correcting of material accounting error has influenced the retained profit at beginning of year by RMB0.00.
4) Change of consolidation due to common control has influenced the retained profit at beginning of year by RMB0.00.
5) Other adjustment has influenced the retained profit at beginning of year by RMB0.00.
Remarks on retained profit. For companies first issue shares to the public, if the accumulated profit has been decided by the
shareholders meeting to be shared by the old and new shareholders, shall be stated particularly; if the accumulated profit has been
decided by the shareholders meeting to be allocated to the old shareholders before issuing of shares, the actual audited amount of
profit attributable to the old shareholders shall be stated particularly.
32. Operational turnover and cost
(1) Operation incomes and costs
In RMB
Items Occurred current term Occurred in previous term
Major business turnover 18,712,609,372.61 19,090,732,721.39
Other business income 1,100,066,909.20 1,635,129,574.99
Operation cost 18,139,126,080.72 19,229,253,208.00
(2) Business segments (on industries)
In RMB
Occurred current term Occurred in previous term
Name of industry
Turnover Operation cost Turnover Operation cost
工业 18,712,609,372.61 17,181,683,180.74 19,090,732,721.39 17,760,317,359.90
Total 18,712,609,372.61 17,181,683,180.74 19,090,732,721.39 17,760,317,359.90
(3) Business segments (on products)
In RMB
Occurred current term Occurred in previous term
Products or services
Turnover Operation cost Turnover Operation cost
Steel plate 18,357,581,603.01 16,897,230,420.45 18,724,548,792.69 17,446,440,322.62
Steel billet 7,366,348.70 6,616,089.48 112,972.56 101,067.24
Others 347,661,420.90 277,836,670.81 366,070,956.14 313,775,970.04
Total 18,712,609,372.61 17,181,683,180.74 19,090,732,721.39 17,760,317,359.90
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(4) Business segments (on regions)
In RMB
Occurred current term Occurred in previous term
Name of districts
Turnover Operation cost Turnover Operation cost
东北 3,320,519,021.60 3,057,084,699.25 4,253,399,119.43 3,956,353,765.14
North 2,591,046,019.00 2,379,065,950.60 2,679,017,921.59 2,490,441,010.53
East 7,169,192,086.06 6,582,662,237.63 7,664,702,149.28 7,156,013,838.65
Northwest 37,077,166.92 34,043,789.54 36,962,769.98 34,391,664.18
Mid-south 646,728,430.06 593,817,931.43 738,194,292.86 688,101,980.27
Export 4,948,046,648.97 4,535,008,572.30 3,718,456,468.25 3,435,015,101.13
Total 18,712,609,372.61 17,181,683,180.75 19,090,732,721.39 17,760,317,359.90
(5) Revenue from top five customers
In RMB
Name of clients Major business turnover Portion in total turnover
Hengxing International Resource
800,263,376.10 4.28%
Co., Ltd.
Jiaji Investment (China) Co., Ltd. 610,172,625.56 3.26%
Xiamen Jianfa Materials Co., Ltd. 461,093,581.67 2.46%
Hangzhou Relian (HK) Co., Ltd. 538,555,113.60 2.88%
Liaoning Bengang Steel & Iron
363,037,262.77 1.94%
Trading Co., Ltd.
Total 2,773,121,959.70 14.82%
Statement on revenue.
33. Business tax and surcharge
In RMB
Items Occurred current term Occurred in previous term Rate
Operational tax 60,167.57 1,216,190.28
City maintenance and construction tax 37,675,170.42 43,007,791.40
Education surtax 27,358,527.49 30,952,188.69
Total 65,093,865.48 75,176,170.37 --
Remarks on turnover tax and surcharges
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34. Sales expenses
In RMB
Items Occurred current term Occurred in previous term
Outsourced transportation 200,717,734.34 197,628,072.54
Port fee 79,511,461.24 46,670,531.73
Import & export agency fee 30,793,751.74 30,000,000.00
Packaging 28,225,787.71 29,149,030.33
Wage and remuneration 12,136,222.13 10,117,544.87
Internal transportation 4,847,298.51
Others 21,120,459.99 15,516,057.07
Total 372,505,417.15 333,928,535.05
35. Administrative expenses
In RMB
Items Occurred current term Occurred in previous term
Social insurance 26,490,632.56 26,190,851.44
Wage and remuneration 110,234,653.79 104,823,877.45
Rental 180,950,181.25 181,267,899.25
Maintaining 121,066,431.88 125,660,142.39
Taxes 43,378,362.70 44,133,585.11
Land using rights 28,713,000.00 28,713,000.00
Depreciation 30,914,431.25 29,322,579.75
Amortizing of intangible assets 1,316,459.95 1,309,384.50
Others 51,511,302.30 25,336,332.63
Sewage expense 13,706,701.00 15,770,772.00
Water resource fee 60,000.00 4,000,000.00
Housing fund 5,852,308.20 6,524,942.00
Heating 4,342,101.86 3,297,301.16
Business reception expenses 2,634,137.25 3,453,291.28
Technical development fee 739,955.55 1,632,236.03
Transportation 645,787.83 629,532.00
Total 622,556,447.37 602,065,726.99
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36. Financial expenses
In RMB
Items Occurred current term Occurred in previous term
Interest expense 335,252,814.41 353,365,434.16
Less: Incoming interests 10,576,749.48 10,452,167.24
Exchange gains/losses 66,754,808.48 -100,804,455.52
Others 20,587,512.87 15,362,772.05
Total 412,018,386.28 257,471,583.45
37. Investment income
(1) Details of investment gains
In RMB
Items Occurred current term Occurred in previous term
Others 13,555,224.57 271,232.94
Total 13,555,224.57 271,232.94
(2) Long-term equity investment gains on cost basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
(3) Long-term equity investment gains on equity basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
Remarks on investment gains. Statement shall be provided whether or not there is material limitation on retrieving of investment
gains.
Investment gains increased by RMB13,283,991.63 and 4,897.63%, which was caused by increasing of principal-safe
financial products purchased by the Company.
38. Asset impairment loss
In RMB
Items Occurred current term Occurred in previous term
II. Inventory impairment loss 25,493,258.89 43,331,723.73
Total 25,493,258.89 43,331,723.73
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39. Non-operational income
(1) Non-operational income
In RMB
Carried to current contingent
Items Occurred current term Occurred in previous term
gain/loss
Total of gains from disposal of non-current
3,039,885.23 1,545.53 3,039,885.23
assets
Incl. Gains from disposal of fixed assets 3,039,885.23 1,545.53 3,039,885.23
Gains from debt reorganization 3,650,253.76 10,876,068.52 3,650,253.76
Government subsidy 1,159,998.00 3,296,041.75 1,159,998.00
Others 2,326,883.39 5,649,112.40 2,326,883.39
Total 10,177,020.38 19,822,768.20 10,177,020.38
Statement on non-operational income
(2) Government subsidy accounted to current gain/loss account
In RMB
Occurred in previous Asset-related or Non-recurring or
Subsidy titles Occurred current term
term income-related recurring
Transferred from
59,998.00 Income related Yes
deferred income
Enterprise allowances 50,000.00 3,000,000.00 Income related Yes
Tax refund 1,050,000.00 296,041.75 Income related Yes
Total 1,159,998.00 3,296,041.75 -- --
40. Non-operational expenditures
In RMB
Occurred in previous Carried to current
Items Occurred current term
term contingent gain/loss
Total of loss from disposal of non-current assets 3,912.18 3,170,147.09 3,912.18
Incl. Loss from disposal of fixed assets 3,912.18 3,170,147.09 3,912.18
Total 3,912.18 3,170,147.09 3,912.18
Remarks on non-operational expenses
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41. Income tax expenses
In RMB
Items Occurred current term Occurred in previous term
Income tax calculated according to the law and regulations of
15,883,711.28 30,264,063.99
current term
Adjustment of deferred income tax -5,442,045.37 -12,026,170.84
Total 10,441,665.91 18,237,893.15
42. Calculation of basic earning per share and diluted earning per share
1. Basic earnings per share
Basic earnings per share=P0÷S
S= S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk
P0 = Net profit attributable to the common shareholders or net profit attributable to the common shareholder after deducting of
non-recurring gain/loss. S = weighted average of common shares issued in the market S0 = Total shares at the beginning of
term S1 = increased shares due to capitalizing of common reserves or dividend Si = shares increased due to placing of new shares
or transferred from debt in the report term Sj = shares decreased due to actions such as repurchasing in the report term SK = the
amount of shares reduced M0 = number of months of the report term Mi = accumulative number of months from the next
month of share increasing to the end of report term; Mj = accumulative number of months from the next month of share decreasing
to the end of report term.
2. Diluted earnings per share
Diluted earning per share=P1/（S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk+ weighted average of common shares increased by means of
subscription certificates, share future options, or convertible bonds）
P1 = net profit attributable to common shareholders of the Company, or net profit attributable to common shareholders after
deducting of non-recurring gain/loss, with considering the influences of diluting potential common shares, and adjusted according to
Enterprise Accounting Standard and related regulations. At calculating of diluted earnings per share, the Company has considered
the influences of the entire dilute potential common shares, until the diluted earnings per share had reached the minimum value.
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(1) Basic earnings per share
Basic earnings per share is the result of consolidated net profit attributable to common shareholders divided by the weighted average
of common shares issued by the Company.
Items Amount of the Current Term Amount of the Previous Term
consolidated net profit attributable to common shareholders 173,894,309.64 163,313,441.38
weighted average of common shares issued by the Company 3,136,000,000.00 3,136,000,000.00
Basic earnings per share (Yuan/share) 0.055 0.052
Calculating process of weighted average of common shares:
Items Amount of the Current Term Amount of the Previous Term
Amount of common shares already issued at beginning of year 3,136,000,000.00 3,136,000,000.00
Plus: Weighted amount of common shares issued this term
Less: weighted amount of common shares repurchased in current term
Weighted amount of common shares issued outside at end of year 3,136,000,000.00 3,136,000,000.00
(2) Diluted earning per share
Diluted earning per share is calculated as adjusted consolidated net profit attributable to the common shareholders divided by weighted
average of common shares issued by the Company:
Items Amount of the Current Term Amount of the Previous Term
Consolidated net profit (diluted) attributable to the 173,894,309.64 163,313,441.38
common shareholders of the Company
Weighted average of common shares issued by the 3,136,000,000.00 3,136,000,000.00
Company (diluted)
Diluted earning per share (Yuan/share) 0.055 0.052
43. Other miscellaneous income
In RMB
Items Occurred current term Occurred in previous term
Total 0.00 0.00
Remarks on other misc income
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44. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
Items Amount
Retrieving of trade account 60,712,702.06
Interest income 10,576,749.48
Special allowance and subsidy 13,910,000.00
Non-operational income 1,159,998.00
Others 437,593.26
Total 86,797,042.80
Statement on other cash inflow related to operation
(2) Other cash paid related to operation
In RMB
Items Amount
Enterprise interchange 486,437,012.32
Sales expenses 5,252,661.52
Administration expenses 47,317,732.96
Commission 20,587,512.87
Others 1,790,071.43
Total 561,384,991.10
Statement on other cash paid related to operation
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45. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Amount of the Current Amount of the Previous
Supplementary Info.
Term Term
1. Net profit adjusted to cash flow of business operation -- --
Net profit 189,169,492.78 183,321,309.69
Plus: Asset impairment provision 25,493,258.89 43,331,723.73
Fixed asset depreciation, gas and petrol depreciation, production goods
1,045,357,820.05 1,120,220,749.63
depreciation
Amortizing of intangible assets 1,316,459.95 1,302,309.01
Loss from disposal of fixed assets, intangible assets, and other long-term
-3,035,973.05 3,168,601.56
assets (“-“ for gains)
Financial expenses (“-“ for gains) 412,018,386.28 257,471,583.45
Investment losses (“-“ for gains) -13,555,224.57 -271,232.94
Decrease of deferred income tax asset (“-“ for increase) -5,442,045.37 -12,360,374.20
Decrease of inventory (“-“ for increase) -367,397,286.99 -184,219,354.13
Decrease of operational receivable items (“-“ for increase) -514,837,206.85 -383,227,861.96
Increase of operational payable items (“-“ for decrease) -1,991,550,780.88 -235,720,090.52
Cash flow generated by business operation, net -1,222,463,099.76 793,017,363.32
2. Major investment and financing operation not involving with cash -- --
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 2,583,042,559.12 2,467,127,764.48
Less: Initial balance of cash 4,574,532,598.83 3,816,212,299.73
Net increasing of cash and cash equivalents -1,991,490,039.71 -1,349,084,535.25
(3) Composition of cash and cash equivalents
In RMB
Items End of term Beginning of term
I. Cash 2,583,042,559.12 4,574,532,598.83
Incl: Cash in stock 74,810.28 54,902.23
Bank savings could be used at any time 2,582,967,748.84 4,452,367,572.18
III. Balance of cash and cash equivalents at end of term 2,583,042,559.12 4,574,532,598.83
Statement on supplementary information of cash flow statement
46. Notes to statement of change in owners’ equity
Please state titles and amounts of “Other” items which have been adjusted for their closing balance of last year, and retrospective
adjustment caused by merger of entities under common control
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VIII. Related parties and transactions
1. Parent companies of the Company
Percentage of
Name of Voting rights
Ownership Reg. Legal Business Registered shares of the Ultimate holder of Organization
the parent Relationship of the parent
type Add. representative property capital parent company the Company code
co. company
in the Company
Benxi Steel Liaoning Provincial
Controlling Fully Zhang
(Group) Benxi Production 53.69 82.07% 82.07% State-asset 11972626-3
shareholder state-owned Xiaofang
Co., Ltd. Administration
Bengang Liaoning Provincial
Substantial Fully Zhang
Group Co., Benxi Production 180 82.07% 82.07% State-asset 56462557-5
controller state-owned Xiaofang
Ltd. Administration
Particulars about the parent company of the Company
2. Subsidiaries of the Company
Full name of the Ownership of Ownership Legal Business Registered Share Portion of Organization
Reg. Add.
subsidiary the subsidiary type representative property capital proportion % voting rights code
Xiamen Bengang Steel Controlled Limited Zhang
Xiamen Sales 50.00 100.00% 100.00% 73788827-8
Sales Ltd. subsidiaries liability Guoming
Wuxi Bengang Steel Sales Controlled Limited
Wuxi Liu Xiaodong Sales 100.00 100.00% 100.00% 73654820-4
Ltd. subsidiaries liability
Tianjin Bengang Steel Controlled Limited
Tianjin Liu Chuang Sales 300.00 100.00% 100.00% 74135658-1
Trading Ltd. subsidiaries liability
Nanjing Bengang Steel Controlled Limited
Nanjing Liu Xiaodong Sales 115.00 100.00% 100.00% 75945466-5
Material Sales Ltd. subsidiaries liability
Yantai Bengang Steel Controlled Limited
Yantai Wang Lixin Sales 50.00 100.00% 100.00% 74451514-6
Sales Ltd. subsidiaries liability
Haerbin Bengang Controlled Limited
Harbin Fei Jixi Sales 50.00 100.00% 100.00% 73137417-X
International Trading Ltd. subsidiaries liability
Changchun Bengang Steel Controlled Limited
Changchun Yang Chuang Sales 50.00 100.00% 100.00% 74841484-4
Sales Ltd. subsidiaries liability
Guangzhou Bengang Controlled Limited
Guangzhou Wu Shaogang Sales 100.00 100.00% 100.00% 68328959-4
Trade Co., Ltd. subsidiaries liability
Shanghai Bengang Controlled Limited
Shanghai Fei Jixi Sales 1,920.00 100.00% 100.00% 68408762-8
Metallurgy Tech. Ltd. subsidiaries liability
Bengang Steel Plate
Controlled Limited Wang
Liaoyang Orel Ball Co., Liaoyuang Production 1,000.00 100.00% 100.00% 68968094-9
subsidiaries liability Zhengzhi
Ltd.
Dalian Benruitong
Controlled Limited
Automobile Material Dalian Wang Shu Production 10,000.00 65.00% 65.00% 55498444-3
subsidiaries liability
Technologies Co., Ltd.
Bengang Puxiang Cool
Controlled Limited Zhang
Rolling Steel Sheet Co., Benxi Production 192,000.00 75.00% 75.00% 71785107-2
subsidiaries liability Xiaofang
Ltd.
3. Other related parties
Name of the related parties Relation with the Company Organization code
Bengang Group International Trading Ltd. Same parent 701581055
Bengang Group Hong Kong Ltd. Both under Bengang Group None
Bengang Stainless Cool-rolling (Dandong) Co., Ltd. Same parent 69941004-5
Benxi Beiying Steel & Iron (Group) Co., Ltd. Both under Bengang Group 736737267
Benxi Beiying Steel & Iron Group Import & Export Co., Ltd. Both under Bengang Group 686628969
Bengang Electronics Co., Ltd. Same parent 781648511
Benxi Steel (Group) Real-estate Development Co., Ltd. Same parent 819664921
Benxi Steel (Group) Steel Process and Logistics Co., Ltd. Same parent 752795993
Bengang (Group) Engineering Supervisory Co., Ltd. Same parent 736708677
Benxi Steel (Group) Machinery Co., Ltd. Same parent 701577718
Benxi Steel (Group) Construction Co., Ltd. Same parent 119726538
Benxi Steel (Group) Mining Co., Ltd. Same parent 701577726
Benxi Steel (Group) Thermal Power Development Co., Ltd. Same parent 701579297
Benxi Steel (Group) Designing Institute Same parent 78510290-3
106
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Benxi Steel (Group) Industrial Development Co., Ltd. Same parent 701578120
Benxi Steel (Group) Information & Automatic Tech. Co., Ltd. Same parent 752798182
Benxi Steel (Group) Construction & Repairing Co., Ltd. Same parent 701578219
Benxi Steel (Group) Metallurgy Residues Co., Ltd. Same parent 701578155
Benxi Steel (Group) Medical Co. Ltd. Same parent 701578526
Benxi Steel & Iron Group Ltd. News Center Same parent 701570954
Benxi Steel & Iron (Group) Zhengtai Construction Materials Co., Ltd. Same parent 67046738X
Benxi Steel (Group) Drilling Tools Co., Ltd. Same parent 74710835-1
Benxi Steel New Business Development Co., Ltd. Same parent 701578198
Dalian Boluole Steel Tube Ltd. Same parent 60480260-2
Guangshou Free Trade Zone Bengang Sales Co., Ltd. Both under Bengang Group 231289622
Liaoning Bengang Steel & Iron Trading Co., Ltd. Both under Bengang Group 78458403-1
Liaoning Hengtai Heavy Machine Co., Ltd. Both under Bengang Group 736710320
Liaoning Hengtong Metallurgy Equipment Co., Ltd. Both under Bengang Group 58416362X
Liaoning Metallurgy Technician College Same parent 463564144
Liaoning College of Metallurgy Technologies Same parent 463567636
Shanghai Bengang Steel & Iron Trading Co., Ltd. Both under Bengang Group 784796085
Tianjin Bengang Steel Plate Processing and Delivery Co., Ltd. Both under Bengang Group 789375490
Tianjin Bengang Longxing Steel Processing Co., Ltd. Shareholding company 67941109-1
Shanghai Bengang Steel Sales Ltd. Both under Bengang Group 133837824
Benxi Steel & Iron Group Hospital Both under Bengang Group 46356374X
Statement on other related parties
107
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
4. Related Transactions
(1) Purchasing of goods and services
In RMB
Occurred current term Occurred in previous term
Subjects of the related Pricing and decision
Related parties Ratio in similar Ratio in similar
transactions making process Amount Amount
trades trades
Benxi Steel (Group) Co., Ltd. Maintaining 15,911.38 0.88% 12,084.80 0.63%
Benxi Steel (Group) Co., Ltd. Land rent 2,871.30 0.16% 2,871.30 0.15%
Bengang Stainless Cool-rolling (Dandong)
Products in stock 184.56 0.01% 367.79 0.02%
Co., Ltd.
Benxi Steel (Group) Mining Co., Ltd. Labor service 69.45 52.64
Benxi Steel (Group) Mining Co., Ltd. Raw materials 255,246.60 14.07% 271,584.20 14.12%
Benxi Steel (Group) Mining Co., Ltd. Transportation 89.04 7.10
Benxi Steel (Group) Metallurgy Residues
Raw materials 12,101.33 0.67% 8,815.60 0.46%
Co., Ltd.
Benxi Steel (Group) Steel Process and
Process fee 156.94 0.01% 253.18 0.01%
Logistics Co., Ltd.
Benxi Steel (Group) Real-estate
Raw materials 4,064.34 0.22% 2,500.34 0.13%
Development Co., Ltd.
Benxi Steel (Group) Machinery Co., Ltd. spare parts 7,366.68 0.41% 12,587.48 0.65%
Benxi Steel (Group) Machinery Co., Ltd. Repairing services 891.97 0.05% 268.86 0.01%
Benxi Steel (Group) Construction Co., Ltd. spare parts 186.86 0.01% 354.03 0.02%
Benxi Steel (Group) Construction Co., Ltd. Engineering fee 20,400.57 1.12% 24,588.42 1.28%
Benxi Steel (Group) Construction Co., Ltd. Raw materials 124.64 0.01% 73.25
Benxi Steel (Group) Construction Co., Ltd. Transportation 159.51 0.01% 339.55 0.02%
Benxi Steel (Group) Industrial
spare parts 2,010.48 0.11% 2,379.32 0.12%
Development Co., Ltd.
Benxi Steel (Group) Industrial
Raw materials 12,118.84 0.67% 14,000.37 0.73%
Development Co., Ltd.
Benxi Steel (Group) Industrial
Repairing services 911.57 0.05% 748.95 0.04%
Development Co., Ltd.
Benxi Steel (Group) Industrial
Transportation 340.61 0.02% 436.65 0.02%
Development Co., Ltd.
Benxi Steel (Group) Construction &
Material and parts 345.20 0.02% 375.32 0.02%
Repairing Co., Ltd.
Benxi Steel (Group) Construction &
Engineering 5,503.81 0.30% 8,614.31 0.45%
Repairing Co., Ltd.
Bengang Electronics Co., Ltd. Raw materials 5,681.38 0.31% 7,071.45 0.37%
Bengang Electronics Co., Ltd. Repairing services 1,208.06 0.07% 990.76 0.05%
Benxi Steel (Group) Drilling Tools Co.,
spare parts 20.26 20.73
Ltd.
Benxi Steel New Business Development
Labour security fee 211.26 0.01% 224.17 0.01%
Co., Ltd.
Liaoning Metallurgy Technician College spare parts 814.21 0.04% 1,033.35 0.05%
Bengang Group International Trading Ltd. Port service and agency 17,122.16 0.94% 3,000.00 0.16%
Benxi Steel (Group) Information &
spare parts 512.66 0.03% 435.12 0.02%
Automatic Tech. Co., Ltd.
Benxi Steel (Group) Information &
Repairing services 295.08 0.02% 415.89 0.02%
Automatic Tech. Co., Ltd.
Benxi Steel (Group) Thermal Power
Heating fee 635.51 0.04% 523.02 0.03%
Development Co., Ltd.
Benxi Steel (Group) Designing Institute Engineering fee 521.28 0.03% 507.70 0.03%
Benxi Beiying Steel & Iron (Group) Co.,
Raw materials 390,295.45 21.52% 25,663.49 1.33%
Ltd.
Liaoning Hengtong Metallurgy Equipment
Raw materials and parts 3,755.86 0.21% 2,959.43 0.15%
Co., Ltd.
Liaoning Hengtai Heavy Machine Co., Ltd. Raw materials and parts 162.83 0.01% 2,303.16 0.12%
Liaoning Hengtai Heavy Machine Co., Ltd. Repairing and service 286.41 0.02% 915.80 0.05%
Total 762,578.09 42.05% 409,367.53 21.27%
108
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Sales of goods and services
In RMB
Occurred current term Occurred in previous term
Subjects of the related Pricing and decision
Related parties Ratio in similar Ratio in similar
transactions making process Amount Amount
trades trades
Bengang Electronics Co., Ltd. Power supply 70.05 40.56
Benxi Beiying Steel & Iron (Group) Co.,
Material and parts 11,825.51 0.60% 34,875.15 1.68%
Ltd.
Benxi Beiying Steel & Iron (Group) Co.,
Products 35,888.01 1.81% 0.00
Ltd.
Benxi Steel (Group) Real-estate
Power supply 170.29 0.01% 258.88 0.01%
Development Co., Ltd.
Benxi Steel (Group) Steel Process and
Power supply 46.89 52.14
Logistics Co., Ltd.
Benxi Steel (Group) Steel Process and
Products 33,041.00 1.67% 38,560.57 1.86%
Logistics Co., Ltd.
Benxi Steel (Group) Machinery Co., Ltd. Power supply 1,490.96 0.08% 1,210.25 0.06%
Benxi Steel (Group) Construction Co., Ltd. Power supply 408.08 0.02% 492.98 0.02%
Benxi Steel (Group) Construction Co., Ltd. Material and parts 3,543.04 0.18% 2,388.03 0.12%
Benxi Steel (Group) Mining Co., Ltd. Power supply 34,301.74 1.73% 38,661.22 1.87%
Benxi Steel (Group) Mining Co., Ltd. Material and parts 5,921.70 0.30% 14,862.34 0.72%
Benxi Steel (Group) Mining Co., Ltd. Freight income 486.48 0.02% 85.67
Benxi Steel (Group) Thermal Power
Power supply 2,233.28 0.11% 3,411.58 0.16%
Development Co., Ltd.
Benxi Steel (Group) Thermal Power
Material and parts 37.16 126.90 0.01%
Development Co., Ltd.
Benxi Steel (Group) Industrial Development
Power supply 408.85 0.02% 174.76 0.01%
Co., Ltd.
Benxi Steel (Group) Industrial Development
Material and parts 7,748.64 0.39% 6,238.76 0.30%
Co., Ltd.
Benxi Steel (Group) Construction &
Power supply 81.31 83.68
Repairing Co., Ltd.
Benxi Steel (Group) Construction &
Material and parts 137.98 0.01% 124.49 0.01%
Repairing Co., Ltd.
Benxi Steel (Group) Metallurgy Residues
Power supply 217.62 0.01% 242.15 0.01%
Co., Ltd.
Benxi Steel (Group) Metallurgy Residues
Material and parts 3,500.05 0.18% 5,325.33 0.26%
Co., Ltd.
Benxi Steel (Group) Co., Ltd. Power supply 4,072.78 0.21% 5,257.78 0.25%
Benxi Steel (Group) Co., Ltd. Material and parts 389.78 0.02% 574.95 0.03%
Benxi Steel New Business Development
Power supply 16.83 17.40
Co., Ltd.
Dalian Boluole Steel Tube Ltd. Products 436.80 0.02% 542.48 0.03%
Liaoning Bengang Steel & Iron Trading Co.,
Products 36,303.73 1.83% 31,574.63 1.52%
Ltd.
Tianjin Bengang Steel Plate Processing and
Products 5,720.16 0.29% 40.17 0.00%
Delivery Co., Ltd.
Liaoning Hengtong Metallurgy Equipment
Power supply 729.16 0.04% 556.13 0.03%
Co., Ltd.
Liaoning Hengtong Metallurgy Equipment
Material and parts 864.29 0.04% 2,179.27 0.11%
Co., Ltd.
Bengang Stainless Cool-rolling (Dandong)
Material and parts 65.14 66.41
Co., Ltd.
Bengang Stainless Cool-rolling (Dandong)
Material and parts 780.47 0.04% 25,625.74 1.24%
Co., Ltd.
Total 190,937.78 9.63% 213,650.40 10.31%
(2) Related trusteeship or contracting
Related trusteeship or contracting in which the Company is the undertaker
In RMB
Nature of the Gains from the
Name of the Name of the
asset to be Start date Terminating date Pricing basis deal in report
employer undertaker
undertaken period
Related trusteeship or outsourcing in which the Company is the employer
In RMB
109
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Amount of
Name of the Name of the Nature of the
Start date End date Pricing basis payment
employer undertaker entrust
recognized
Statement on the trusteeship and contracting:
(3) Related leasing
The Company is the lender
In RMB
Category of Starting Pricing Rental recognized in
Name of the owner Name of the tenant Ending date
asset for rent date basis the period
Benxi Steel (Group) Bengang Steel Plates Co., 2300 hot rolling January 1,
Dec 31 2014 (1) -180,000,000.00
Co., Ltd. Ltd. line 2012
Benxi Beiying Steel & Bengang Steel Plates Co., 1780 hot-rolling January 1 December 31
（2） -65,956,008.06
Iron (Group) Co., Ltd. Ltd. line 2014 2016
Benxi Steel (Group) Bengang Steel Plates Co., April 15,
Land using right (3) -28,713,000.00
Co., Ltd. Ltd. 2009
Benxi Steel (Group) Steel
Bengang Steel Plates Warehouse and January 1
Process and Logistics Co., Dec 31 2014 480,000.00
Co., Ltd. auxiliary 2014
Ltd.
The Company is the undertaker
In RMB
Rental
Name of the Name of the Category of asset
Starting date Ending date Pricing basis recognized in the
owner tenant for rent
period
Statement on related leasing
1. As agreed by the parties, the rental shall be decided through negotiating basing on the depreciation on the original value and
national surtaxes and with consideration of the production and operation condition of the production line. However the rental shall
not be greater than RMB350 million per annum.
2. As agreed by the parties, the rental shall be decided through negotiating basing on the depreciation on the original value and
national surtaxes and with consideration of the production and operation condition of the production line. However the rental shall
not be greater than RMB150 million per annum.
3. Both of the parties have agreed to adopt the rent set out under the principles of the ongoing “Land Using Right Lease Agreement”,
i.e. RMB0.624 per square meter a month. The land for rent was 7,669,068.17 square meters with annual rental of RMB57,426,000.
110
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
(4) Related guarantees
In RMB
Amount Completed or
The guarantor The beneficiary Start date Due date
guaranteed not
Benxi Steel (Group) Co., Bengang Puxiang Cool Rolling Steel Sheet Co.,
58,100,000.00 Dec 28, 2012 September 20 2015 No
Ltd. Ltd.
Benxi Steel (Group) Co., Bengang Puxiang Cool Rolling Steel Sheet Co., September 20,
24,900,000.00 Dec 28, 2012 No
Ltd. Ltd. 2014
Benxi Steel (Group) Co., Bengang Puxiang Cool Rolling Steel Sheet Co.,
100,000,000.00 Jan 17 2014 January 15, 2015 No
Ltd. Ltd.
Benxi Steel (Group) Co., Bengang Puxiang Cool Rolling Steel Sheet Co.,
200,000,000.00 Aug 27 2013 August 26, 2014 No
Ltd. Ltd.
Benxi Steel (Group) Co., Bengang Puxiang Cool Rolling Steel Sheet Co.,
510,682,400.00 August 30, 2013 August 29, 2014 No
Ltd. Ltd.
Benxi Steel (Group) Co., Bengang Puxiang Cool Rolling Steel Sheet Co.,
972,142,400.00 January 29, 2014 January 28, 2015 No
Ltd. Ltd.
Benxi Steel (Group) Co., Bengang Puxiang Cool Rolling Steel Sheet Co.,
100,000,000.00 October 16, 2013 October 15, 2014 No
Ltd. Ltd.
Bengang Group Co., Ltd. Bengang Steel Plates Co., Ltd. 90,000,000.00 Dec 21 2012 Nov 20 2015 No
Bengang Group Co., Ltd. Bengang Steel Plates Co., Ltd. 300,000,000.00 Jun 24 2014 June 23, 2015 No
Bengang Group Co., Ltd. Bengang Steel Plates Co., Ltd. 184,584,000.00 March 28, 2014 April 22, 2015 No
Bengang Group Co., Ltd. Bengang Steel Plates Co., Ltd. 184,584,000.00 April 4 2014 April 22, 2015 No
Bengang Group Co., Ltd. Bengang Steel Plates Co., Ltd. 246,112,000.00 April 15, 2014 April 22, 2015 No
Benxi Steel (Group) Co., September 10, September 10,
Bengang Steel Plates Co., Ltd. 18,459,278.40 No
Ltd. 1997 2027
Bengang Group Co., Ltd. Bengang Steel Plates Co., Ltd. 1,722,784,000.00 March 20, 2014 August 20, 2015 No
Benxi Steel (Group) Co.,
Bengang Steel Plates Co., Ltd. 1,552,988,000.00 Mar 18 2013 March 17, 2015 No
Ltd.
Bengang Group Co., Ltd. Bengang Steel Plates Co., Ltd. 2,199,796,000.00 June 27, 2014 June 27, 2016 No
Benxi Steel (Group) Co.,
Bengang Steel Plates Co., Ltd. 73,833,600.00 February 14, 2014 February 13, 2015 No
Ltd.
Benxi Steel (Group) Co.,
Bengang Steel Plates Co., Ltd. 369,168,000.00 Sept 6 2013 September 5, 2014 No
Ltd.
Benxi Steel (Group) Co.,
Bengang Steel Plates Co., Ltd. 123,056,000.00 Sept 6 2013 September 5, 2014 No
Ltd.
Benxi Steel (Group) Co.,
Bengang Steel Plates Co., Ltd. 86,139,200.00 Sept 25 2013 September 24 2014 No
Ltd.
Statement on related guarantees
(5) Capital borrowing with related parties
In RMB
Related parties Amount of demolition Start date Expired on Remarks
Borrow in
Benxi Steel (Group) Co., Ltd. 11,838,400.00 Sept 9 2013 September 8, 2014
Benxi Steel (Group) Co., Ltd. 10,676,568.00 Jun 4 2014 June 3, 2015
Benxi Steel (Group) Co., Ltd. 19,506,800.00 Nov 6 2013 November 5, 2014
Benxi Steel (Group) Co., Ltd. 17,150,200.00 April 28 2013 April 27, 2015
Benxi Steel (Group) Co., Ltd. 16,879,300.00 October 9, 2013 October 8, 2014
Benxi Steel (Group) Co., Ltd. 12,608,700.00 Dec 27, 2013 December 26, 2014
Total 88,659,968.00
Lend out
(6) Asset transferring and debt reconstruction with related parties
In RMB
Principle of Occurred current term Occurred in previous term
Type of Subjects of the pricing the Ratio in Ratio in
Related parties
trade related transactions related Amount similar Amount similar
transactions trades trades
111
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
(7) Other related transactions
5. Receivable and payables due with related parties
Receivable accounts due from related parties
In RMB
At end of term At beginning of term
Projects Related parties Bad debt Bad debt
Book balance Book balance
provision provision
Account receivable
Benxi Beiying Steel & Iron (Group) Co.,
1,165,700.00
Ltd.
Bengang Electronics Co., Ltd. 2,189,939.33 28,212.65 1,473,586.39 28,212.65
Benxi Steel (Group) Machinery Co., Ltd. 9,181,864.41 223,711.14 26,621,051.28 223,711.14
Benxi Steel (Group) Construction Co., Ltd. 46,711,857.60 1,379,957.65 38,238,370.81 1,379,957.65
Benxi Steel (Group) Industrial Development
22,958,627.95 215,774.74 21,961,938.87 215,774.74
Co., Ltd.
Benxi Steel New Business Development Co.,
4,982,838.41 2,345,786.57 4,453,135.22 2,345,786.57
Ltd.
Benxi Steel (Group) Medical Co. Ltd. 870,769.44 525,405.07 871,155.51 525,405.07
Benxi Steel (Group) Thermal Power
14,700,742.57 1,874,765.17 2,171,429.49 1,874,765.17
Development Co., Ltd.
Benxi Steel (Group) Steel Process and
498,929.81
Logistics Co., Ltd.
Bengang Stainless Cool-rolling (Dandong)
5,040,093.51 5,228,628.53
Co., Ltd.
Liaoning Hengtong Metallurgy Equipment
8,730,342.91 14,373,660.29
Co., Ltd.
Bengang Group International Trading Ltd. 78,988,909.33 42,738,479.91
Sub-total 194,355,985.46 6,593,612.99 159,796,066.11 6,593,612.98
Prepayments
Benxi Beiying Steel & Iron (Group) Co.,
446,432,092.92 416,220,277.20
Ltd.
Benxi Steel (Group) Construction &
7,308,068.38 7,111,990.93
Repairing Co., Ltd.
Liaoning Hengtai Heavy Machine Co., Ltd. 53,429,155.54 31,545,095.73
Benxi Steel (Group) Machinery Co., Ltd. 73,251,348.35 7,267,342.37
Bengang Group International Trading Ltd. 32,882,055.11 90,169,964.51
Bengang Stainless Cool-rolling (Dandong)
2,391,477.27
Co., Ltd.
Benxi Steel & Iron (Group) Zhengtai
563,692.17 509,445.06
Construction Materials Co., Ltd.
Sub-total 613,866,412.47 555,215,593.07
Other account
receivable
Benxi Steel (Group) Real-estate
9,895,021.87 39,038.16 8,971,458.13 39,038.16
Development Co., Ltd.
Benxi Steel (Group) Construction &
972,504.93 517,982.41
Repairing Co., Ltd.
Liaoning Metallurgy Technician College 153,801.70 2,599.65 156,265.86 2,599.65
Bengang Stainless Cool-rolling (Dandong)
931,539.78 2,814,479.56
Co., Ltd.
Benxi Steel (Group) Construction Co., Ltd. 1,479,007.18 194,891.44 2,234,162.51 194,891.44
Sub-total 13,431,875.46 236,529.25 14,694,348.47 236,529.26
112
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Account payable due to related parties
In RMB
Amount at end of
Projects Related parties Initial ammount
term
Account payable
Benxi Beiying Steel & Iron (Group) Co., Ltd. 576,877,852.45
Bengang Electronics Co., Ltd. 2,592,619.87 2,141,898.00
Benxi Steel (Group) Real-estate Development Co., Ltd. 6,973,822.25 11,312,536.29
Bengang Group International Trading Ltd. 854,745,416.72 4,209,686,753.30
Benxi Steel (Group) Machinery Co., Ltd. 23,861,318.70 14,898,653.80
Benxi Steel (Group) Construction Co., Ltd. 100,201,755.34 132,057,801.68
Benxi Steel (Group) Mining Co., Ltd. 474,560,995.69 130,158,904.32
Benxi Steel (Group) Industrial Development Co., Ltd. 42,389,852.47 88,165,695.23
Benxi Steel New Business Development Co., Ltd. 11,180,208.52 10,397,986.55
Benxi Steel (Group) Construction & Repairing Co., Ltd. 60,123,676.32 29,277,846.33
Benxi Steel (Group) Designing Institute 6,223,881.47 15,922,275.89
Benxi Steel (Group) Metallurgy Residues Co., Ltd. 85,674,360.71 51,584,410.81
Benxi Steel (Group) Medical Co. Ltd. 20,440.35 20,440.35
Benxi Steel (Group) Information & Automatic Tech. Co., Ltd. 51,734,526.24 56,562,983.47
Benxi Steel (Group) Drilling Tools Co., Ltd. 225,378.49 244,120.47
Liaoning Metallurgy Technician College 1,586,345.03 7,314,724.83
Liaoning Bengang Steel & Iron Trading Co., Ltd. 505,234.99 1,621,913.38
Benxi Steel (Group) Thermal Power Development Co., Ltd. 17,536,543.19 30,315,341.69
Benxi Steel & Iron (Group) Zhengtai Construction Materials Co.,
88,673.20 197,960.00
Ltd.
Liaoning Hengtong Metallurgy Equipment Co., Ltd. 9,289,322.33 5,699,721.87
Liaoning College of Metallurgy Technologies 1,023,619.27 1,109,798.97
Bengang Stainless Cool-rolling (Dandong) Co., Ltd. 366,844.91 202,818.01
Liaoning Hengtai Heavy Machine Co., Ltd. 14,909,899.91 7,744,659.86
Sub-total 2,342,692,588.42 4,806,639,245.10
Notes payable
Benxi Steel (Group) Construction Co., Ltd. 2,507,833.30 310,624.60
Benxi Steel (Group) Industrial Development Co., Ltd. 2,088,450.00 577,620.70
Liaoning Bengang Steel & Iron Trading Co., Ltd. 1,116,678.39
Benxi Steel (Group) Machinery Co., Ltd. 261,715.67
Benxi Steel (Group) Real-estate Development Co., Ltd. 57,600.00
Bengang Electronics Co., Ltd. 168,313.01 65,648.88
Benxi Steel (Group) Construction & Repairing Co., Ltd. 53,068.88
Liaoning Metallurgy Technician College 150,000.00 82,075.00
Benxi Steel (Group) Mining Co., Ltd. 15,398,796.50 64,766,720.15
Sub-total 21,430,071.20 66,175,073.88
Other account
payable
Bengang Electronics Co., Ltd. 212,790.79 338,080.93
Benxi Steel (Group) Real-estate Development Co., Ltd. 4,861,294.88 5,902,244.88
Bengang Group International Trading Ltd. 1,110,599.30 647,562.68
Benxi Steel (Group) Machinery Co., Ltd. 1,437,263.72 1,163,833.17
Benxi Steel (Group) Construction Co., Ltd. 25,190,424.63 17,175,472.93
Benxi Steel (Group) Industrial Development Co., Ltd. 927,104.04 639,699.16
Benxi Steel New Business Development Co., Ltd. 599,974.92 757,679.52
Benxi Steel (Group) Construction & Repairing Co., Ltd. 6,121,399.88 5,304,499.12
Benxi Steel (Group) Metallurgy Residues Co., Ltd. 1,296,398.40 1,508,393.56
Benxi Steel (Group) Medical Co. Ltd. 10,391.95
Benxi Steel (Group) Information & Automatic Tech. Co., Ltd. 363,635.00 215,872.20
Benxi Steel (Group) Steel Process and Logistics Co., Ltd. 4,232,845.63 2,396,691.03
Benxi Steel (Group) Co., Ltd. 61,947,389.31 141,981,771.59
Benxi Steel & Iron Group Ltd. News Center 3,680,281.71
Liaoning Hengtai Heavy Machine Co., Ltd. 684,654.47 513,536.70
Benxi Beiying Steel & Iron Group Import & Export Co., Ltd. 1,900,000.00 1,900,000.00
Guangshou Free Trade Zone Bengang Sales Co., Ltd. 2,674,436.85 2,674,436.85
Shanghai Bengang Steel Sales Ltd. 863,797.83 863,797.83
Bengang Stainless Cool-rolling (Dandong) Co., Ltd. 96,596.40 96,596.40
Sub-total 114,520,606.05 187,770,842.21
113
Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Advances received
Benxi Steel (Group) Machinery Co., Ltd. 13,417,468.57 41,488.75
Tianjin Bengang Longxing Steel Processing Co., Ltd. 1,208.60
Benxi Steel (Group) Industrial Development Co., Ltd. 1,873,842.45 1,978,340.93
Benxi Steel (Group) Metallurgy Residues Co., Ltd. 2,894,971.40 2,701,316.80
Benxi Steel (Group) Steel Process and Logistics Co., Ltd. 75,711,880.39 46,404,502.88
Dalian Boluole Steel Tube Ltd. 1,822,776.57 1,908,632.33
Liaoning Bengang Steel & Iron Trading Co., Ltd. 5,230,458.02 18,718,625.53
Liaoning Hengtong Metallurgy Equipment Co., Ltd. 17,709.40 48,339.46
Tianjin Bengang Steel Plate Processing and Delivery Co., Ltd. 4,324,770.83 5,762,403.42
Liaoning Hengtai Heavy Machine Co., Ltd. 184,695.93 184,695.93
Sub-total 105,478,573.56 77,749,554.63
IX. Commitment Issues
1. Material commitment issues
1. External investment contracts engaged but not completed, and financial expenses
As of the end of 2014, the Company had entered the construction and equipment purchasing contracts of RMB1,331,589,000 in total
which were not executed yet. There was a balance of RMB512.78 million payable for the construction and equipment purchasing
contracts executed but not completed.
2. Leasing contracts engaged or to be executed, and their financial influences
(1) Commitment about operational lease: For the land using rights provided by Bengang Group to the Company in term of lease, both
of the parties have agreed to adopt the rent set out under the principles of the ongoing “Land Using Right Lease Agreement”, i.e.
RMB6.24 per square meter. The land for rent was 7,669,068.17 square meters with annual rental of RMB57,426,000.
(2) On May 11, 2012, the Company entered the rental agreement with Bengang Group – the parent company of the Company, by
which the Company rented the 2300mm hot-rolling line with value of RMB4.6 billion. The rental was started on January 1, 2012 and
will be ended on December 31, 2014. As agreed by the parties, the rental shall be decided through negotiating basing on the
depreciation on the original value and national surtaxes and with consideration of the production and operation condition of the
production line. However the rental shall not be greater than RMB350 million per annum.
(3) As approved at the 4th meeting of the 6th Board of Directors held on November 29, 2013, as well as the 1 st Provisional
Shareholders Meeting 2013, the Company was about to rent the 1780mm hot-rolling line from Benxi Beiying Iron & Steel Group
Co., Ltd. The term was started on January 1, 2014 and ended on December 31, 2016. As agreed by the parties, the rental shall be
decided through negotiating basing on the depreciation on the original value and national surtaxes and with consideration of the
production and operation condition of the production line. However the rental shall not be greater than RMB150 million per annum.
2. Fulfilling of commitments made in previous periods
There was not such commitments made in previous period to be disclosed.
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X. Post Balance Sheet Issues
1. Statement on material post-balance-sheet events
In RMB
Influence on the Reason for
financial position not able to
Items Contents
and business estimate the
performance influence
th th
On January 26, 2014, as approved by the 5 meeting of the 6 term of
Board, the Company was about to issue corporation bond up to RMB3
The preplan of
billion (included) to the public. This proposal was approved at the 1st
offering up to
shareholders provisional meeting of 2014.
RMB3 billion
On July 18, 2014, China Securities Supervisory Commission Share
(included) of
Offering Verification Committee verified the Companys application, and it
corporation bond
was approved thereafter.
The Company is planning to invest along with Kunshan Baojin Laser
Welding Co., Ltd. to setup Bengang Baojin (Shenyang) Automobile
Material Technologies Co., Ltd. This company will be incorporated with
Invest to setup
RMB60 million of capital, in which the Company will invest RMB9
company
million and take 15% of the share. Kunshan Baojin Laser Welding Co., Ltd.
will input RMB51 million to take 85% of the share. The joint-venture is
under filing procedures.
2. Statement on profit distribution in post balance sheet period
In RMB
Proposed profit or dividend 156,800,000.00
3. Statement on other issues in post balance sheet period
There is no other issues in post balance sheet period.
XI. Other important issues
1. Debt reconstruction
There is not any material debt reconstruction to be disclosed for the report period.
The Company conducted debt reconstruction with multiple suppliers regarding routine transactions, and created the gain of
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RMB3,650,253.76 from the debt reconstruction.
2. Rental
(1) On May 11, 2012, the Company entered the rental agreement with Bengang Group – the parent company of the Company, by
which the Company rented the 2300mm hot-rolling line with value of RMB4.6 billion. The rental was started on January 1, 2012 and
will be ended on December 31, 2014. As agreed by the parties, the rental shall be decided through negotiating basing on the
depreciation on the original value and national surtaxes and with consideration of the production and operation condition of the
production line. However the rental shall not be greater than RMB350 million per annum.
(2) As approved at the 4th meeting of the 6th Board of Directors held on November 29, 2013, as well as the 1 st Provisional
Shareholders Meeting 2013, the Company was about to rent the 1780mm hot-rolling line from Benxi Beiying Iron & Steel Group
Co., Ltd. The term was started on January 1, 2014 and ended on December 31, 2016. As agreed by the parties, the rental shall be
decided through negotiating basing on the depreciation on the original value and national surtaxes and with consideration of the
production and operation condition of the production line. However the rental shall not be greater than RMB150 million per annum.
3. Others
Bengang Group International Trade Co., Ltd. is the fully-owned subsidiary of Bengang Group, which provides international trade
agency service to the Company exclusively. During January to June 2014, this company used the credit of RMB450 million of the
Company in Industrial & Commercial Bank Benxi Branch for issuing of L/C when doing business on behalf of the Company.
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XII. Notes to the Financial Statements of the Parent Company
1. Account receivable
(1) Account receivable
In RMB
End of term Beginning of term
Categories Book balance Bad debt provision Book balance Bad debt provision
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Receivables provided bad debt provision in groups
Group 1: on age basis 508,065,520.38 100.00% 131,712,227.12 25.92% 782,992,925.21 100.00% 131,712,227.12 16.82%
Sub-total of group 508,065,520.38 100.00% 131,712,227.12 25.92% 782,992,925.21 100.00% 131,712,227.12 16.82%
Total 508,065,520.38 -- 131,712,227.12 -- 782,992,925.21 -- 131,712,227.12 --
Remarks on categories of receivable account
Receivable accounts with large amount individually and bad debt provisions were provided
[] Applicable; [V] Not applicable
Receivable accounts in the portfolio on which bad debt provisions were provided on age basis
[V] Applicable Not applicable
In RMB
End of term Beginning of term
Age Book balance Book balance
Bad debt provision Bad debt provision
Amount Proportion Amount Proportion
within 1 yr
In which: -- -- -- -- -- --
324,552,373.11 63.88% 599,479,777.94 76.56%
Subtotal of within 1 year 324,552,373.11 63.88% 599,479,777.94 76.56%
1-2 years 50,779,227.83 9.99% 2,538,961.39 50,779,227.83 6.49% 2,538,961.39
2-3 years 4,450,817.14 0.88% 890,163.43 4,450,817.14 0.57% 890,163.43
Over 3 yrs 128,283,102.30 25.25% 128,283,102.30 128,283,102.30 16.38% 128,283,102.30
Total 508,065,520.38 -- 131,712,227.12 782,992,925.21 -- 131,712,227.12
Receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
[] Applicable; [V] Not applicable
Receivable accounts in the portfolio on which bad debt provisions are provided on other basis
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[] Applicable; [V] Not applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of period
[] Applicable; [V] Not applicable
(2) Receivable accounts written back or retrieved in the report period
In RMB
Bad debt provision
Description of the receivable Reason to write back Basis of original bad Amount written back or
provided before writing
accounts or retrieve debt provision retrieved
back or retrieving
Bad debt provisions on receivable accounts with single large amount or minor amount but tested individually at end of report period
In RMB
Description of the
Book balance Amount of bad debt Rate Reason
receivable accounts
Remarks on receivable accounts with minor single amount but with greater risks after combining with accounts with similar risks:
N/A
(3) Receivable accounts actually written off in the report period
In RMB
Name of the Property of the Reason of writing Occurred under
Date of written off Amount written off
companies receivable account off related relationship
Remarks on writing off of receivable accounts
(4) Particulars about the receivable accounts due from shareholders with 5% or over of the Company’s
shares
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
(5) Nature or description of other receivable accounts with large amount
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(6) Top 5 receivable accounts
In RMB
Relation with the Percentage in total
Name of the companies Amount Ages
Company receivables
Shenzhen Southern Zhongji East Logistics within 1
Client 57,150,658.89 11.25%
Equipment Co., Ltd. yr
Benxi Steel (Group) Construction Co., Ltd. Related parties 40,962,562.17 1-2 yrs 8.06%
within 1
Baoji Steel Tube Liaoyang Factory Client 35,907,138.36 7.07%
yr
within 1
Huayou Steel Tube Co., Ltd. Client 29,759,297.55 5.86%
yr
Benxi Steel (Group) Industrial Development Co.,
Related parties 22,958,627.95 1-2 yrs 4.52%
Ltd.
Total -- 186,738,284.92 -- 36.76%
(7) Account receivable from related parties
In RMB
Relation with the Percentage in total
Name of the companies Amount
Company receivables
Bengang Electronics Co., Ltd. Same parent 2,189,939.33 0.43%
Benxi Steel (Group) Machinery Co., Ltd. Same parent 9,181,864.41 1.81%
Benxi Steel (Group) Construction Co., Ltd. Same parent 40,962,562.17 8.06%
Benxi Steel (Group) Industrial Development Co., Ltd. Same parent 22,958,627.95 4.52%
Benxi Steel New Business Development Co., Ltd. Same parent 4,982,838.41 0.98%
Benxi Steel (Group) Medical Co. Ltd. Same parent 870,769.44 0.17%
Benxi Steel (Group) Thermal Power Development Co.,
Same parent 14,700,742.57 2.89%
Ltd.
Bengang Stainless Cool-rolling (Dandong) Co., Ltd. Same parent 5,040,093.51 0.99%
Both under Bengang
Liaoning Hengtong Metallurgy Equipment Co., Ltd. 8,730,342.91 1.72%
Group
Bengang Group International Trading Ltd. Same parent 78,988,909.33 15.55%
Total -- 188,606,690.03 37.12%
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(8) RMB0.00 transferred under account receivable not satisfying the conditions of termination.
(9) If securitilizing performed on target asset with purpose of receivable account, please brief the related
arrangements
N/A
2. Other account receivable.
(1) Other receivable accounts
In RMB
End of term Beginning of term
Categories Book balance Bad debt provision Book balance Bad debt provision
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Other receivables provided bad debt provision in groups
Group 1: on age basis 309,436,643.95 99.44% 61,935,727.79 19.90% 321,361,325.81 99.46% 61,935,727.79 19.27%
Sub-total of group 309,436,643.95 99.44% 61,935,727.79 19.90% 321,361,325.81 99.46% 61,935,727.79 19.27%
Other account
receivable with minor
individual amount but 1,740,000.00 0.56% 1,740,000.00 0.54%
bad debt provision is
provided
Total 311,176,643.95 -- 61,935,727.79 -- 323,101,325.81 -- 61,935,727.79 --
Remarks on other types of receivable accounts
Other receivable accounts with major single amount and bad debt provision drawn upon them
[] Applicable; [V] Not applicable
Other receivable accounts in the portfolio on which bad debt provisions are provided on age basis
[V] Applicable Not applicable
In RMB
End of term Beginning of term
Age Book balance Book balance
Bad debt provision Bad debt provision
Amount Proportion Amount Proportion
within 1 yr
In which: -- -- -- -- -- --
210,457,558.71 67.63% 222,382,240.57% 68.82
Subtotal of within 1 year 210,457,558.71 67.63% 222,382,240.57% 68.82
1-2 years 35,406,754.19 11.38% 1,770,337.71 5.00 35,406,754.19% 10.96
2-3 years 4,258,676.21 1.37% 851,735.24 20.00 4,258,676.21% 1.32
Over 3 yrs 61,053,654.84 19.62% 59,313,654.84 97.15 61,053,654.84% 18.90
Total 311,176,643.95 -- 61,935,727.79 -- 100.00
Other receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
[] Applicable; [V] Not applicable
Other receivable accounts in the portfolio on which bad debt provision are provided on other basis
[] Applicable; [V] Not applicable
Other receivable accounts with minor amount but were provided bad debt provisions individually at end of period
[V] Applicable Not applicable
In RMB
Description of other Book balance Bad debt provision Rate Reason to provide
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receivables
Japanese Loan Sinking
Fund of Finance Bureau 1,740,000.00 sinking fund
of Benxi
Total 1,740,000.00 -- --
(2) Other receivable accounts written back or retrieved in the report period
In RMB
Bad debt provision
Description of other Reason to write back Basis of original bad Amount written back or
provided before writing
receivables or retrieve debt provision retrieved
back or retrieving
Bad debt provisions on other receivable accounts with single large amount or minor amount but tested individually at end of report
period
In RMB
Description of the
Book balance Amount of bad debt Rate Reason
receivable accounts
Other receivable accounts in the portfolio which has minor single amount but with greater risk after combined in the portfolio
(3) Other receivable accounts actually written off in the report period
In RMB
Name of the Reason of writing Occurred under related
Property of account Date of written off Amount written off
companies off relationship
Remark on writing off of other receivable accounts
(4) Particulars about the other receivable accounts due from shareholders with 5% or over of the
Company’s shares in the report period
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
(5) Natures or contents of other receivable accounts with large amount
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(6) Top 5 debtors of other receivable accounts
In RMB
Relation with the Percentage in total of other
Name of the companies Amount Ages
Company receivables
within 1
Freight for main clients Client 28,205,578.72 9.06%
yr
Benxi Nanfen Xinhe Metallurgy Material Co., within 1
Client 16,833,029.95 5.41%
Ltd. yr
Benxi Steel (Group) Real-estate Development within 2
Related parties 9,895,021.87 3.18%
Co., Ltd. yrs
Benxi Juyuan Slag and Furnance Burden Co., within 1
Client 7,786,024.94 2.50%
Ltd. yr
Benxi Guanghui Thermal Power Development
Client 3,474,645.71 1-2 yrs 1.12%
Co., Ltd.
Total -- 66,194,301.19 -- 21.27%
(7) Other accounts receivable from related parties
In RMB
Relation with the Percentage in total of other
Name of the companies Amount
Company receivables
Benxi Steel (Group) Real-estate Development Co.,
Same parent 9,895,021.87 3.18%
Ltd.
Benxi Steel (Group) Construction & Repairing Co.,
Same parent 972,504.93 0.31%
Ltd.
Liaoning Metallurgy Technician College Same parent 153,801.70 0.05%
Bengang Stainless Cool-rolling (Dandong) Co., Ltd. Same parent 931,539.78 0.30%
Benxi Steel (Group) Construction Co., Ltd. Same parent 1,093,341.27 0.35%
Total -- 13,046,209.55 4.19%
(8) Amount of other receivables transferred but not satisfying the conditions of termination recognition is
RMB0.00
(9) If securitilizing performed on target asset with purpose of other receivable account, please brief the
related arrangements
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3. Long-term equity investment
In RMB
Statement on differences Impairment Cash dividend
Calculating Closing Percentage of share in Voting power Impairment
Company invested in Investment cost Opening balance Changed by between the shareholding and provision provided of the current
basis balance the firm % in the firm % provision
voting rights this term term
Guangzhou Bengang Trade
Cost basis 1,000,000.00 1,000,000.00 1,000,000.00% 100.00% 100
Co., Ltd.
Shanghai Bengang
Cost basis 19,200,000.00 19,200,000.00 19,200,000.00% 100.00% 100
Metallurgy Tech. Ltd.
Bengang Steel Plate
Liaoyang Orel Ball Co., Cost basis 529,899,801.38 529,899,801.38 529,899,801.38% 100.00% 100
Ltd.
Dalian Benruitong
Automobile Material Cost basis 65,000,000.00 65,000,000.00 65,000,000.00% 65.00% 65
Technologies Co., Ltd.
Bengang Puxiang Cool
Cost basis 1,019,781,571.10 1,019,781,571.10 1,019,781,571.10% 75.00% 75
Rolling Steel Sheet Co., Ltd.
Changchun Bengang Steel
Cost basis -1,355,124.64 -1,355,124.64 -1,355,124.64% 100.00% 100
Sales Ltd.
Haerbin Bengang
Cost basis 423,398.23 423,398.23 423,398.23% 100.00% 100
International Trading Ltd.
Nanjing Bengang Steel
Cost basis 2,081,400.65 2,081,400.65 2,081,400.65% 100.00% 100
Material Sales Ltd.
Wuxi Bengang Steel Sales
Cost basis 936,718.57 936,718.57 936,718.57% 100.00% 100
Ltd.
Xiamen Bengang Steel
Cost basis 1,095,711.66 1,095,711.66 1,095,711.66% 100.00% 100
Sales Ltd.
Yantai Bengang Steel Sales
Cost basis 19,600,329.41 19,600,329.41 19,600,329.41% 100.00% 100
Ltd.
Tianjin Bengang Steel
Cost basis 33,318,095.80 33,318,095.80 33,318,095.80% 100.00% 100
Trading Ltd.
Tianjin Bengang Longxing
Cost basis 3,888,980.00 -3,888,980.00 0.00% 20.00% 20
Steel Processing Co., Ltd.
Suzhou Bengang Industrial
3,888,980.00 3,888,980.00 3,888,980.00%
Co., Ltd.
China Steel Shanghai Steel
Cost basis 10,058,250.00 14,414,693.00 14,414,693.00% 15.00% 15
Processing Co., Ltd.
Total -- 1,704,929,132.16 1,709,285,575.16 0.00 -- -- --
Statement on long-term equity investment
In June 2014, the Company withdrew the investment in Tianjin Bengang Longxing Steel Processing Co., Ltd. and invested to Suzhou Bengang Industrial Co., Ltd. This has caused change in
long-term investment.
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4. Operation income and operation cost
(1) Operation incomes
In RMB
Items Occurred current term Occurred in previous term
Major business turnover 19,320,232,643.54 19,001,469,281.90
Other business income 1,467,421,157.22 2,626,674,355.71
Total 20,787,653,800.76 21,628,143,637.61
Operation cost 19,444,180,864.05 20,519,434,445.03
(2) Business segments (on industries)
In RMB
Occurred current term Occurred in previous term
Name of industry
Turnover Operation cost Turnover Operation cost
Industry 19,320,232,643.54 18,119,383,979.86 19,001,469,281.90 18,065,388,660.12
Total 19,320,232,643.54 18,119,383,979.86 19,001,469,281.90 18,065,388,660.12
(3) Business segments (on products)
In RMB
Occurred current term Occurred in previous term
Products or services
Turnover Operation cost Turnover Operation cost
Steel plate 18,965,204,873.94 17,834,931,219.57 18,635,285,353.20 17,751,511,622.84
Steel billet 7,366,348.70 6,616,089.48 112,972.56 101,067.24
Others 347,661,420.90 277,836,670.81 366,070,956.14 313,775,970.04
Total 19,320,232,643.54 18,119,383,979.86 19,001,469,281.90 18,065,388,660.12
(4) Business segments (on regions)
In RMB
Occurred current term Occurred in previous term
Name of districts
Turnover Operation cost Turnover Operation cost
Northeast 5,370,259,387.04 5,036,471,024.99 5,887,079,974.89 5,597,061,271.51
North 2,254,210,036.53 2,114,099,657.95 2,069,745,208.24 1,967,782,125.66
East 6,941,211,777.72 6,509,780,902.05 5,603,458,514.60 5,327,412,023.00
Northwest 37,077,166.92 34,772,636.37 36,962,769.98 35,141,851.18
Mid-south 646,728,430.06 606,531,037.75 2,266,128,494.18 2,154,490,865.62
Export 4,070,745,845.27 3,817,728,720.75 3,138,094,320.01 2,983,500,523.15
Total 19,320,232,643.54 18,119,383,979.86 19,001,469,281.90 18,065,388,660.12
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(5) Revenue from top five customers
In RMB
Name of clients Total turnover Portion in total turnover
Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd. 2,919,735,434.96 14.05%
Shanghai Bengang Metallurgy Tech. Ltd. 1,074,883,351.02 5.17%
Hengxing International Resource Co., Ltd. 800,263,376.10 3.85%
Jiaji Investment (China) Co., Ltd. 610,172,625.56 2.94%
Yantai Bengang Steel Sales Ltd. 539,648,483.85 2.60%
Total 5,944,703,271.49 28.61%
Statement on revenue.
N/A
5. Investment income
(1) Details of investment gains
In RMB
Items Occurred current term Occurred in previous term
Others 12,378,753.42
Total 12,378,753.42 0.00
(2) Long-term equity investment gains on cost basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
(3) Long-term equity investment gains on equity basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
Remarks on investment gains
RMB12,378,753.42 of gains from short-term bank financial products, which was the gains from the principal-safe financial products
the Company purchased from some large banks.
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6. Supplementary data of cash flow statement
In RMB
Amount of the Current Amount of the Previous
Supplementary Info.
Term Term
1. Net profit adjusted to cash flow of business operation -- --
Net profit 84,481,154.29 54,430,242.01
Plus: Asset impairment provision 10,725,948.26 6,434,843.91
Fixed asset depreciation, gas and petrol depreciation, production goods
851,829,767.67 935,795,925.42
depreciation
Loss from disposal of fixed assets, intangible assets, and other long-term
-3,035,973.05 3,168,601.56
assets (“-“ for gains)
Financial expenses (“-“ for gains) 335,585,476.87 187,226,665.21
Investment losses (“-“ for gains) -12,378,753.42
Decrease of deferred income tax asset (“-“ for increase) -3,305,402.67 -2,996,831.22
Decrease of inventory (“-“ for increase) -308,738,666.74 -431,950,864.91
Decrease of operational receivable items (“-“ for increase) -280,872,047.31 95,965,349.14
Increase of operational payable items (“-“ for decrease) -1,651,028,653.70 -256,087,947.42
Cash flow generated by business operation, net -976,737,149.80 591,985,983.70
2. Major investment and financing operation not involving with cash -- --
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 2,336,101,336.67 2,289,634,347.74
Less: Initial balance of cash 4,304,424,513.46 3,480,999,428.60
Net increasing of cash and cash equivalents -1,968,323,176.79 -1,191,365,080.86
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XIII. Supplementary Information
1. Details of non-recurring gain/loss of the term
In RMB
Items Amount Remarks
Gain/loss from disposal of non-current assets (includes the recovered part of asset impairment provision
3,035,973.05
already provided)
Gains and losses included in the current period of government subsidies, excluding those government grants
which are closely related to normal business and in line with national policy , or in accordance with fixed 1,159,998.00
standards or quantities
Gain/loss from commissioned investment or assets 13,555,224.57
Gain/loss from debt reorganization 3,650,253.76
Other non-business income and expenditures other than the above 2,326,883.39
Less: Influenced amount of income tax 2,543,277.05 -
Influence on minority shareholders equity (after tax) 66,116.76
Total 21,118,938.96 --
If a government subsidy is a recurring income item accounted into current income account, please state basis of recognition.
[] Applicable; [V] Not applicable
2. Differences of financial data under domestic and international accounting standards
(1) Differences in net profit and net assets under international and domestic standards
In RMB
Net profit attributable to the shareholders of the Net asset attributable to the shareholders of the
listed company listed company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
173,894,309.64 163,313,441.38 15,333,593,391.38 15,308,337,697.63
Standard
Items and amounts adjusted on IAS
Under International
173,894,309.64 163,313,441.38 15,333,593,391.38 15,308,337,697.63
Accounting Standard
(2) Differences in net profit and net assets under overseas and domestic standards
In RMB
Net profit attributable to the shareholders of the Net asset attributable to the shareholders of the
listed company listed company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
173,894,309.64 163,313,441.38 15,333,593,391.38 15,308,337,697.63
Standard
Accounts and amounts adjusted according to overseas accounting standard
On IAS 173,894,309.64 163,313,441.38 15,333,593,391.38 15,308,337,697.63
No difference between the domestic and international accounting standard.
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(3) Remarks on the differences of financial data under overseas and domestic accounting standards
No difference between the domestic and international accounting standard.
3. Net income on asset ratio and earning per share
In RMB Yuan
Earnings per share
Net income on asset,
Profit of the report period Basic earnings per Diluted earnings
weighted
share per share
Net profit attributable to common shareholders of the Company 1.14% 0.055 0.055
Net profit attributable to the common owners of the PLC after
0.97% 0.049 0.049
deducting of non-recurring gains/losses
4. Irregular situation and causes of items in the financial statements
* Major items in the consolidated statements which have changed by over 30% from the end of 2013
Rate of
I. Balance Sheet Items change Cause of change
Monetary capital 35% Increase of purchase payment
Notes receivable 39% Increase of notes receivable unpaid received in the period
Engineering goods 90% Increase of construction material undelivered
Increase was caused by booking of land using rights under
Intangible assets 146% possession of Hihg-strength Steel in the period
Notes payable 217% Increase of purchase payment by notes payable
Interest payable 32% Increase of interest payable at end of period
Non-current liability due in 1 year -62% Decrease of long-term borrowings turned under 1 year
Special reserves 3868% Decrease of safety fee paid in the period
* Items changed by over 30% on Jan-Mar 2013 in the
consolidated financial statement
Rate of
II. Income Statement Items change Cause of change
Financial expenses 60% Impact of exchange rate fluctuation
Asset impairment loss -41% Decrease of asset impairment loss under subsidiaries
Investment income 4898% Increase of bank financing instruments purchased this period
Non-operational income -49% Decrease of gains from debt reconstitution
Non-operational expenditure -100% Decrease of loss from disposal of fixed asset in the period
Income tax expenses -43% Decrease of profit by subsidiaries
Rate of
III. Cash Flow Statement change Cause of change
Tax returned 122% Increase of tax refunding received this period
Taxes paid -59% Decrease of VAT paid in the period
Cash flow generated by business operation, net -254% Increase of cash paid for purchase of goods and services
Cash received from investment retrieving 2898% Increase of bank financing instruments purchased this period
Cash received as investment profit 4898% Increase of bank financing instruments purchased this period
Net cash retrieved from disposal of fixed assets,
Increase of cash received from disposal of fixed assets
intangible assets, and other long-term assets 8868%
Cash paid for construction of fixed assets, intangible
Increase of cash paid for construction of fixed assets
assets and other long-term assets 57%
Cash paid as investment 2918% Increase of bank financing instruments purchased this period
Cash inflow from investment 857% Increase of financial products purchased this period
Net cash flow generated by investment 61% Increase of cash paid for construction of fixed assets
Net cash flow generated by financing -118% Accelerating of borrowing net increasing in the period
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Bengang Steel Plates Co., Ltd. Interim Report 2014 Full Text
Chapter X. Documents For Reference
1. Financial Statements signed and stamped by the legal representative, CFO, and accounting manager;
2. All of the original copies of documents and announcements that have been published on China Securities Journal, Securities Times,
and Hong Kong Commercial Daily.
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