Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Bengang Steel Plates Co., Ltd.
Interim Report 2015
August 2015
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Bengang Steel Plates Co., Ltd. Interim Report 2015 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. Zhao Zhongmin – 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.
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Table of Content
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 .............................................................................................................................................................16
Chapter VI. Change of Share Equity and Shareholders .........................................................................................................................24
Chapter VII. Particulars about Preference Shares ..................................................................................................................................27
Chapter VIII. Particulars about the Directors, Supervisors and Senior Executives ...............................................................................28
Chapter IX. Financial Report.................................................................................................................................................................29
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Glossary
Terms Defined as Description
Bengang Bancai, Bengang Steel, the Company, the Listed
Defined as Bengang Steel Plates Co., Ltd.
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
Liaoning Provincial State-asset Administration Defined as
Management 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 2015 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: Zhao Zhongmin
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. 024-47828360 024-47827003
Fax. 024-47824158 024-47827004
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
None of the official presses, website, and place of enquiry has been changed in the report period. For details please find the Annual
Report 2014.
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 refer to Annual
Repot 2014.
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Bengang Steel Plates Co., Ltd. Interim Report 2015 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 2014.
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Bengang Steel Plates Co., Ltd. Interim Report 2015 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?
[] Yes [V] No
Same period last
This report term Increase/decrease (%)
year
Turnover (RMB) 16,344,915,161.18 19,812,676,281.81 -17.50%
Net profit attributable to shareholders of the listed
128,007,136.26 173,894,309.64 -26.39%
company (yuan)
Net profit attributable to the shareholders of the listed
company and after deducting of non-recurring 105,281,258.76 152,775,370.68 -31.09%
gain/loss(RMB)
Net Cash flow generated by business operation (RMB) -2,344,037,353.22 -1,222,463,099.76 -91.75%
Basic earnings per share (Yuan/share) 0.04 0.06 -33.33%
Diluted earnings per share (Yuan/share) 0.04 0.06 -33.33%
Net income on asset, weighted 0.83% 1.14% -0.31%
Ended this report Changed at end of report period
End of prev. year
term over end of previous period
Gross Assets (RMB) 45,521,698,127.16 49,170,603,030.67 -7.42%
Net asset attributable to owners of the PLC 15,366,607,525.78 15,384,562,323.08 -0.12%
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
[] Applicable; [V] Not applicable
No difference between the net profit and net asset in the financial reports prepared under IAS and Chinese Accounting Standard for
the report period.
2. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
[] Applicable; [V] Not applicable
No difference between the net profit and net asset in the financial reports prepared under IAS and Chinese Accounting Standard for
the report period.
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
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
-17,733,564.05
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 31,328,000.00
fixed standards or quantities
Gain/loss from commissioned investment or assets 6,584,315.11
Gain/loss from debt reorganization 6,439,698.87
Other non-business income and expenditures other than the above 1,527,544.44
Less: Influenced amount of income tax 5,390,419.82
Influence on minority shareholders equity (after tax) 29,697.05
Total 22,725,877.50 --
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 2015 Full Text
Chapter IV. Board of Directors’ Report
I. Business overview
In the report period, the Company has been doing all efforts to overcome the growing pressure from the national economy. By
concentrating on development obstructs, upgrading industrial structure, and management innovation, the Company achieved steady
development in a new dynamic balance.
On the basis of 100% sales on production ratio, the Company has been expanding its products in terms of product lines and sales
coverage. In the first half of 2015, the Company has accomplished output of: iron of 5.0251 million tons, an increase of 1.79%; steel
of 4.9420 million tons, an decrease of 0.08%; hot-rolled plate of 6.1004 million tons, 6.19% of increase; cool-rolled plate of 1.8764
million tons, an increase of 1.48%; turnover of RMB16,344,915,200, a decrease of 17.5%; net profit attributable to the parent
company of RMB128,007,100, a decrease of 26.39%.
Reinforce cost control by refining of coal and mine composition; reduce spare part consuming by recycling; reduce energy
consuming by technical reconstruction and promoting of new researches.
Put innovation at the core of overall development, accelerate product structure refining and quality lifting, promote application of
state-of-art technologies, enlarge market share of production with high value-adding, aiming at increasing of profitability.
Fully implement the environmental policies of the provincial and municipal government. Pollution control approaches were achieved
by accelerating of key environmental projects.
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 16,344,915,161.18 19,812,676,281.81 -17.50%
Operation cost 14,901,549,350.57 18,139,126,080.72 -17.85%
Sales expense 478,349,279.14 372,505,417.15 28.41%
Mainly because transferring of rental for
Administrative expense 377,591,047.45 622,556,447.37 -39.35%
2300 hot rolling line to cost of this period
Financial expenses 391,399,627.37 412,018,386.28 -5.00%
Mainly because decrease of deferred
Income tax expenses -2,419,204.92 10,441,665.91 -123.17%
income tax of the period
Input to R&D 903,624,000.00 791,046,000.00 14.23%
Cash flow generated by Mainly because increasing of cash paid
-2,344,037,353.22 -1,222,463,099.76 91.75%
business operation, net for purchasing of goods and services
Mainly because increasing of undue
Net cash flow generated by
-1,388,185,769.88 -1,042,136,185.91 33.21% financial instruments purchased this
investment
period
Net cash flow generated by
-2,532,199,491.79 272,112,422.68 -1,030.57% Increase of loans repaid this period
financing
Net increasing of cash and Decrease of cash flow from business
-6,272,852,029.06 -1,991,490,039.71 214.98%
cash equivalents operation and financial operation
Material changes in profit composition or sources
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
[] 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
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 15,440,544,823.29 14,122,473,154.22 8.54% -17.49% -17.81% 0.36%
On Products
Steel plate 15,214,556,106.38 13,938,855,147.86 8.38% -17.12% -21.22% 0.42%
Steel
billet
Others 225,988,716.91 183,618,006.36 18.75% -35.00% -51.31% -1.33%
On territories
Northeast 3,400,939,441.29 3,160,353,455.24 7.07% 2.42% 3.38% -0.86%
North 2,120,677,111.58 1,976,096,000.96 6.82% -18.15% -16.94% -1.36%
East 4,857,686,835.29 4,432,201,274.93 8.76% -32.24% -32.67% 0.58%
Northwest 41,469,735.96 37,948,322.83 8.49% 11.85% 11.47% 0.31%
Mid-south 545,719,150.21 499,964,532.31 8.38% -15.62% -15.81% 0.20%
Export 4,474,052,548.96 4,015,909,567.95 10.24% -9.58% -11.45% 1.89%
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. External equity investment
(1) External investment
[] Applicable; [V] Not applicable
No external investment in the report period.
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
(2) Shareholding in financial enterprises
[] Applicable; [V] Not applicable
No holding of shares of financial institutions in the report period.
(3) Stock investment
[] Applicable; [V] Not applicable
No securities investment in the report period.
(4) Statement of holding equities in other PLCs
[] Applicable; [V] Not applicable
The Company was not holding shares of any other PLC as of the end of report period.
2. Trusted financing, derivate instruments, and trusted loans
(1) Trusted financing
[V] Applicable Not applicable
In RMB10 thousand
Principal Impairment Actual
Related
Title of Type of Amount Started Expired Mean of retrieved provision Predicted gain/loss
Relationship transaction
entrustee product entrusted on on reward this provided (if income of the
or not
period any) period
ICBC Ltd. Financial Capital Jan 13 Feb 17 On
No 15,000 15,000 51.78 51.78
Benxi Branch Institution guaranteed 2015 2015 agreement
Shanghai
Pudong
Financial Capital Feb 11 Feb 28 On
Development No 15,000 15,000 26.9 26.9
Institution guaranteed 2015 2015 agreement
Bank Benxi
Branch
Shengjing
Financial Capital Feb 15 Mar 25 On
Bank Benxi No 40,000 40,000 166.58 166.58
Institution guaranteed 2015 2015 agreement
Branch
Guangdong
Development Financial Capital Apr 3 Apr 16 On
No 30,000 30,000 36.83 36.83
Bank Benxi Institution guaranteed 2015 2015 agreement
Branch
Guangdong
Development Financial Capital Apr 3 Apr 24 On
No 15,000 15,000 31.14 31.14
Bank Benxi Institution guaranteed 2015 2015 agreement
Branch
ICBC Ltd. Financial Capital Mar 6 Apr 10 On
No 10,000 10,000 34.52 34.52
Benxi Branch Institution guaranteed 2015 2015 agreement
Mar
ICBC Ltd. Financial Capital Jun 29 On
No 30,000 29 30,000 310.68 310.68
Benxi Branch Institution guaranteed 2015 agreement
2015
ICBC Ltd. Financial Capital Jun 26 July 31 On
No 19,700
Benxi Branch Institution guaranteed 2015 2015 agreement
Total 174,700 -- -- -- 155,000 0 658.43 658.43
Idle capital under the Company possession
Resource of capital trusted
Accumulated principal and gains overdue 0
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Date of announcement made by the Board about
April 20, 2015
approval of trusted financial service
Date of announcement made by the Shareholders
Meeting about approval of trusted financial service
(2) Derivate instrument investment
[] Applicable; [V] Not applicable
No derivate instrument investment in the report period.
(3) Trusted loans
[] Applicable; [V] Not applicable
No trusted loans in the report period.
3. Using of proceeds from share placing.
[V] Applicable Not applicable
(1) Overall situation of capital from share issuing
[V] Applicable Not applicable
In RMB10 thousand
Total of proceeds 150,000
Total of proceeds invested in the report term 150,000
Total of proceeds invested 150,000
Statement on overall application of finance raised
The Company issued corporation bond of RMB1.5 billion in February 2015, and was all used to repay bank loans according
to the regulations.
(2) Projects financed by share issuing
[] Applicable; [V] Not applicable
(3) Change of projects financed by proceeds
[] Applicable; [V] Not applicable
No change of projects financed by proceeds from share issuing.
(4) Projects financed by share issuing
Overview of projects Date of disclosure Index of information disclosure
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
4. Analyze of main subsidiaries and affiliates
[V] Applicable Not applicable
Profiles of main subsidiaries and affiliates
In RMB Yuan
Major
Name of Registered Operation
Type of business Industry products or Gross Assets Net asset Turnover Net profit
companies capital profit
service
Guangzhou
Bengang Steel rolling 183,480,513.5 633,721,440.3 9,798,590.9
Subsidiaries Sales of steel 1,000,000.00 61,857,957.14 7,322,897.37
Trade Co., business 2 0 3
Ltd.
Shanghai
Bengang Steel rolling 581,013,309.8 131,364,904.0 1,651,753,652 27,514,300.
Subsidiaries Sales of steel 19,200,000.00 20,671,272.22
Metallurgy business 5 7 .13 24
Tech. Ltd.
Bengang Steel
Plate Steel rolling Production of 738,500,745.2 643,602,243.2 127,540,007.5 3,000,315.1
Subsidiaries 10,000,000.00 858,693.23
Liaoyang Orel business pellet 8 2 1 0
Ball Co., Ltd.
Dalian
Benruitong
Processing
Automobile Steel rolling 100,000,000.0 524,688,413.3 355,855,893.5 -4,969,007.
Subsidiaries and sales of 92,369,792.42 -4,855,875.58
Material business 0 1 3 20
steel
Technologies
Co., Ltd.
Bengang
Puxiang Cool Processing
Steel rolling 1,920,000,000 4,196,323,026 1,747,779,921 2,906,688,928 74,708,411.
Rolling Steel Subsidiaries and sales of 74,708,411.10
business .00 .77 .96 .01 10
Sheet Co., steel
Ltd.
Changchun
Steel rolling 261,723,885.4 1,510,240.6
Bengang Steel Subsidiaries Sales of steel 500,000.00 71,463,579.06 12,045,876.50 1,132,680.49
business 1 6
Sales Ltd.
Haerbin
Bengang Steel rolling 120,243,768.8 1,970,146.9
Subsidiaries Sales of steel 500,000.00 46,659,641.64 2,773,974.22 1,970,146.99
International business 7 9
Trading Ltd.
Nanjing
Bengang Steel Steel rolling
Subsidiaries Sales of steel 1,150,000.00 41,680,861.21 29,725,551.61 38,443,954.15 445,114.72 333,836.04
Material Sales business
Ltd.
Wuxi
Steel rolling 404,838,748.0 3,108,008.7
Bengang Steel Subsidiaries Sales of steel 1,000,000.00 70,055,762.77 13,934,867.04 2,822,563.44
business 1 6
Sales Ltd.
Xiamen
Steel rolling
Bengang Steel Subsidiaries Sales of steel 500,000.00 26,903,212.54 14,676,966.12 36,027,277.27 682,476.56 1,796,426.50
business
Sales Ltd.
Yantai
Steel rolling 265,151,889.4 636,212,436.1 4,058,230.8
Bengang Steel Subsidiaries Sales of steel 500,000.00 80,583,431.34 3,118,673.15
business 7 6 7
Sales Ltd.
Tianjin
Steel rolling 131,967,404.8 204,558,232.9 -9,095,996.
Bengang Steel Subsidiaries Sales of steel 3,000,000.00 32,764,885.27 -9,095,996.33
business 4 3 33
Trading Ltd.
Suzhou
Bengang Shareholding Steel rolling 171,517,270.1
Sales of steel 20,000,000.00 54,433,131.19 20,017,881.53 54,537.57 49,083.81
Industrial Co., company business 8
Ltd.
China Steel
Shanghai
Shareholding Steel rolling 633,549,816.7 419,365,032.4 -31,557,771
Steel Sales of steel 89,042,954.00 75,220,249.79 -31,562,972.39
company business 4 0 .89
Processing
Co., Ltd.
Zhejiang
Bengang
Shareholding Steel rolling
Jingrui Steel Sales of steel 10,000,000.00 80,145,542.10 11,874,554.19 86,448,637.43 454,055.55 408,848.74
company business
Processing
Ltd.
5. Major projects using non-raised capital
[V] Applicable Not applicable
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
In RMB10 thousand
Accumulation of Investment Date of Index of
Planned Amount invested Turnover of
Projects actual input at end of progress of the disclosure (if information
investment this report term the project
period project any) disclosed
Information system project 39,038 645.71 19,011.99 90.00%
Environmental reconstruction of
converter and the 180t 177,864.4 1,264.51 14,303.5 90.00%
dephosphorization converter
Production line of
electro-galvanized steel plates for 122,470 8,946.14 117,997.08 95.00%
automobile
Cool rolling high strength steel
610,000 55,140.17 247,650.97 50.00%
rebuilding
hot galvanizing project of No.3 hot
86,918 15,089.1 15,089.1 20.00%
rolling factory
The new energy control center
28,410 1,247.33 23,106.85 90.00%
project
Reconstruction project of coke dry
135,413.2 3,632.96 119,991.62 90.00%
cooling of No.2 Coke Workshop
360 M2 sintering machine 111,178.7 28,827.29 75,482.97 70.00%
Silicon steel project 93,445 883.76 883.76 95.00%
Reconstruction of hot-rolling
26,020 281.57 281.57 90.00%
equipment
Softening water supplying project 7,554 325.95 0 100.00%
Reconstruction of South Gate of
5,598 1,162.25 5,347.03 95.00%
Transportation Dept.
Total 1,443,909.3 117,446.74 639,146.44 -- -- -- --
VI. Business performance forecast for Jan-Sept 2015
Alert of loss or significant change in net profit from the beginning of year to the end of next report period or comparing with the
same period of last year, and statement of causations.
[] Applicable; [V] Not applicable
VII. Statement of the Board on the “Non-standard auditors’ report” issued by the CPA on the
current report period
[] Applicable; [V] Not applicable
VIII. The Board’s statement on “Non-standard Auditors’ Report” of previous year
[] Applicable; [V] Not applicable
IX. Profit distribution carried out in the report period
Execution or adjustment of profit distribution, especially cash dividend, and capitalizing of reserves in the report period.
[] Applicable; [V] Not applicable
None of cash dividend, bonus shares, or capitalizing of common reserves was carried out for the previous year.
X. Profit distribution for the report period.
[] Applicable; [V] Not applicable
None of cash dividend, bonus shares, or capitalizing of common reserves will be carried out for the first half of year.
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
XI. Reception of investigations, communications, or interviews
[V] Applicable Not applicable
Main content involved and
Time/date Place Way Type of visitors Visitors
material provided
Huatai Securities,
Meeting room No. Production and operation
June 10, 2015 Field research Institute Fuguo Foundation,
2, Jinshan Hotel situation
Taikang Capital
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Bengang Steel Plates Co., Ltd. Interim Report 2015 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. Lawsuit issues
Material lawsuit issues
[] Applicable; [V] Not applicable
In the report period, the Company had no material lawsuits or arbitrations.
Other lawsuit issues
[] Applicable; [V] Not applicable
III. Media queries
[] Applicable; [V] Not applicable
No media queries raised in the report period.
IV. Receivership and bankruptcy
[] Applicable; [V] Not applicable
No bankruptcy or capital reorganizing issues occurred in the report period.
V. Asset transactions
1. Acquisition of assets
[] Applicable; [V] Not applicable
No acquisition of assets at the end of report period.
2. Disposal of assets
[] Applicable; [V] Not applicable
No disposal of assets at the end of report period.
3. Merger of entities
[] Applicable; [V] Not applicable
No merger or takeover of entities in the report period.
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
VI. Implementation of share incentive program and influences
[] Applicable; [V] Not applicable
No stock incentive plan composed nor implemented in the report period.
VII. Material related transactions
1. Related transactions related to daily operation
[V] Applicable Not applicable
Market
Principle of Ratio Amount of Exceeded
Subjects of Price Amount of price of Index of
Related Type of pricing the in trade the Way of Date of
Relationship the related of trade similar information
parties trade related similar approved approved payment disclosure
transactions trade RMB0000 trade disclosure
transactions trades (RMb0000) amount?
available
Purchase
Benxi Steel
of goods
(Group) Co., Maintaining 15,002.04 1.01% 32,000 No
and
Ltd.
services
Purchase
Benxi Steel
of goods
(Group) Co., Land rent 2,871.3 0.19%
and
Ltd.
services
Bengang
Purchase
Stainless
of goods Products in
Cool-rolling 30.11 0.00% 1,000 No
and stock
(Dandong)
services
Co., Ltd.
Benxi Steel Purchase
(Group) of goods
Labor service 334.61 0.02%
Mining Co., and
Ltd. services
Benxi Steel Purchase
(Group) of goods
Raw materials 269,369.22 18.10% 550,000 No
Mining Co., and
Ltd. services
Benxi Steel Purchase
(Group) of goods
Transportation 7.2 0.00%
Mining Co., and
Ltd. services
Benxi Steel
Purchase
(Group)
of goods
Metallurgy Raw materials 6,326.65 0.43% 25,000 No
and
Residues
services
Co., Ltd.
Benxi Steel
Purchase
(Group)
of goods
Steel Process Process fee 84.52 0.01% 800 No
and
and Logistics
services
Co., Ltd.
Benxi Steel
Purchase
(Group)
of goods
Real-estate Raw materials 3,904.56 0.26% 8,000 No
and
Development
services
Co., Ltd.
Benxi Steel Purchase
(Group) of goods
Spare parts 6,866.96 0.46% 35,000 No
Machinery and
Co., Ltd. services
Benxi Steel Purchase
(Group) of goods Repairing
132.5 0.01%
Machinery and services
Co., Ltd. services
Benxi Steel Purchase
(Group) of goods
Spare parts 19.35 0.00%
Construction and
Co., Ltd. services
Benxi Steel Purchase
(Group) of goods Engineering
18,539.7 1.25% 80,000 No
Construction and fee
Co., Ltd. services
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Benxi Steel Purchase
(Group) of goods
Raw materials 217.03 0.01%
Construction and
Co., Ltd. services
Benxi Steel Purchase
(Group) of goods
Transportation 207.38 0.01%
Construction and
Co., Ltd. services
Benxi Steel
Purchase
(Group)
of goods
Industrial Spare parts 132.08 0.01%
and
Development
services
Co., Ltd.
Benxi Steel
Purchase
(Group)
of goods
Industrial Raw materials 11,517.85 0.77% 45,000 No
and
Development
services
Co., Ltd.
Benxi Steel
Purchase
(Group)
of goods Repairing
Industrial 1,194.66 0.08%
and services
Development
services
Co., Ltd.
Benxi Steel
Purchase
(Group)
of goods
Industrial Transportation 336.54 0.02%
and
Development
services
Co., Ltd.
Benxi Steel
Purchase
(Group)
of goods Project
Industrial 7.57 0.00%
and payment
Development
services
Co., Ltd.
Benxi Steel
Purchase
(Group)
of goods Material and
Construction 262.22 0.02%
and parts
& Repairing
services
Co., Ltd.
Benxi Steel
Purchase
(Group)
of goods
Construction Engineering 2,641.45 0.18% 25,000 No
and
& Repairing
services
Co., Ltd.
Purchase
Bengang
of goods
Electronics Raw materials 5,299.85 0.36%
and
Co., Ltd.
services
Purchase
Bengang
of goods Repairing
Electronics 747.95 0.05% 20,000 No
and services
Co., Ltd.
services
Benxi Steel
Purchase
(Group)
of goods
Drilling Spare parts 15.32 0.00% 1,000 No
and
Tools Co.,
services
Ltd.
Benxi Steel
Purchase
New
of goods Labour
Business 135.65 0.01% 1,200 No
and security fee
Development
services
Co., Ltd.
Liaoning Purchase
Metallurgy of goods
Spare parts 728.2 0.05% 1,500 No
Technician and
College services
Bengang Purchase
Group of goods
Commission 14,372.66 0.97% 35,000 No
International and
Trading Ltd. services
Benxi Steel
(Group) Purchase
Information of goods
Spare parts 762.58 0.05% 5,000 No
& Automatic and
Tech. Co., services
Ltd.
Benxi Steel Purchase
(Group) of goods Repairing
480.75 0.03%
Information and services
& Automatic services
18
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Tech. Co.,
Ltd.
Benxi Steel
(Group) Purchase
Thermal of goods
Heating fee 615.12 0.04% 2,000 No
Power and
Development services
Co., Ltd.
Benxi Steel Purchase
(Group) of goods Engineering
333.34 0.02% 5,000 No
Designing and fee
Institute services
Benxi
Purchase
Beiying Steel
of goods
& Iron Raw materials 310,161.47 20.84% 800,000 No
and
(Group) Co.,
services
Ltd.
Liaoning
Purchase
Hengtong
of goods Raw materials
Metallurgy 5,576.5 0.37% 12,000 No
and and parts
Equipment
services
Co., Ltd.
Liaoning
Purchase
Hengtai
of goods Raw materials
Heavy 1,570.83 0.11% 6,000 No
and and parts
Machine
services
Co., Ltd.
Liaoning
Purchase
Hengtai
of goods Repairing and
Heavy 882.4 0.06%
and service
Machine
services
Co., Ltd.
Sales of
Bengang
goods
Electronics Power supply 7.83 0.00% 300 No
and
Co., Ltd.
services
Benxi
Sales of
Beiying Steel
goods Material and
& Iron 1,970.01 0.12% 120,000 No
and parts
(Group) Co.,
services
Ltd.
Benxi
Sales of
Beiying Steel
goods
& Iron Commission 337.88 0.02%
and
(Group) Co.,
services
Ltd.
Benxi Steel
Sales of
(Group)
goods
Real-estate Power supply 70.57 0.00%
and
Development
services
Co., Ltd.
Benxi Steel
Sales of
(Group)
goods
Steel Process Power supply 44.45 0.00%
and
and Logistics
services
Co., Ltd.
Benxi Steel
Sales of
(Group)
goods
Steel Process Products 14,167.07 0.87% 80,000 No
and
and Logistics
services
Co., Ltd.
Benxi Steel Sales of
(Group) goods
Products 83.97 0.01%
Machinery and
Co., Ltd. services
Benxi Steel Sales of
(Group) goods
Power supply 1,070.14 0.07% 15,000 No
Machinery and
Co., Ltd. services
Benxi Steel Sales of
(Group) goods Material and
405.12 0.02%
Machinery and parts
Co., Ltd. services
Benxi Steel Sales of
(Group) goods
Power supply 288.46 0.02%
Construction and
Co., Ltd. services
Benxi Steel Sales of Material and
4,909.85 0.30% 25,000 No
(Group) goods parts
19
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Construction and
Co., Ltd. services
Benxi Steel Sales of
(Group) goods
Power supply 37,378.73 2.29% 120,000 No
Mining Co., and
Ltd. services
Benxi Steel Sales of
(Group) goods Material and
4,361.93 0.27%
Mining Co., and parts
Ltd. services
Benxi Steel Sales of
(Group) goods Freight
440.94 0.03%
Mining Co., and income
Ltd. services
Benxi Steel
(Group) Sales of
Thermal goods
Power supply 2,089.59 0.13%
Power and
Development services
Co., Ltd.
Benxi Steel
(Group) Sales of
Thermal goods Material and
491.42 0.03% 15,000 No
Power and parts
Development services
Co., Ltd.
Benxi Steel
(Group) Sales of
Thermal goods Freight
5.91 0.00%
Power and income
Development services
Co., Ltd.
Benxi Steel
Sales of
(Group)
goods
Industrial Power supply 423.37 0.03%
and
Development
services
Co., Ltd.
Benxi Steel
Sales of
(Group)
goods Material and
Industrial 2,408.17 0.15% 20,000 No
and parts
Development
services
Co., Ltd.
Benxi Steel
Sales of
(Group)
goods
Construction Power supply 56.1 0.00% 1,000 No
and
& Repairing
services
Co., Ltd.
Benxi Steel
Sales of
(Group)
goods Material and
Construction 0 0.00%
and parts
& Repairing
services
Co., Ltd.
Benxi Steel
Sales of
(Group)
goods
Metallurgy Power supply 207.5 0.01%
and
Residues
services
Co., Ltd.
Benxi Steel
Sales of
(Group)
goods Material and
Metallurgy 1,833.85 0.11%
and parts
Residues
services
Co., Ltd.
Benxi Steel
Sales of
(Group)
goods Freight
Metallurgy 0.24 0.00% 10,000 No
and income
Residues
services
Co., Ltd.
Sales of
Benxi Steel
goods
(Group) Co., Power supply 3,360.53 0.21% 15,000 No
and
Ltd.
services
Sales of
Benxi Steel
goods Material and
(Group) Co., 357.69 0.02%
and parts
Ltd.
services
Benxi Steel Sales of
New goods
Power supply 19.01 0.00%
Business and
Development services
20
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Co., Ltd.
Sales of
Dalian
goods
Boluole Steel Products 290.65 0.02% 1,500 No
and
Tube Ltd.
services
Liaoning
Sales of
Bengang
goods
Steel & Iron Products 33,910.67 2.07% 90,000 No
and
Trading Co.,
services
Ltd.
Tianjin
Bengang Sales of
Steel Plate goods
Products 0 0.00%
Processing and
and Delivery services
Co., Ltd.
Liaoning
Sales of
Hengtong
goods
Metallurgy Power supply 748.26 0.05% 10,000 No
and
Equipment
services
Co., Ltd.
Liaoning
Sales of
Hengtong
goods Material and
Metallurgy 722.59 0.04%
and parts
Equipment
services
Co., Ltd.
Bengang
Sales of
Stainless
goods Material and
Cool-rolling 78.44 0.00% 1,000 No
and parts
(Dandong)
services
Co., Ltd.
Bengang
Sales of
Stainless
goods Material and
Cool-rolling 121.71 0.01%
and parts
(Dandong)
services
Co., Ltd.
Purchase
Bengang Property
of goods
Group Co., management 1,000 No
and
Ltd. fee
services
Liaoning Purchase Purchasing of
College of of goods spare parts
1,000 No
Metallurgy and and training
Technologies services services
Total -- -- 794,350.77 -- 2,216,300 -- -- -- -- --
2. Related transactions related to asset purchasing or disposal
[] Applicable; [V] Not applicable
No related transaction regarding asset purchase or disposal up to the end of report period.
3. Related transaction of joint external investment
[] Applicable; [V] Not applicable
No related transaction of joint external investment in the report period.
4. Debtors and credits with related parties
[] Applicable; [V] Not applicable
No debtors and credits with related parties in the report period.
5. Other related transactions
[] Applicable; [V] Not applicable
21
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
No other related transaction in the report period.
VIII. Non-operational capital appropriation by holding shareholder and related parties
[] Applicable; [V] Not applicable
No non-operational capital appropriation by holding shareholder or related parties occurred in the report period.
IX. Material contracts and execution
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
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.
22
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
X. Commitment issues by shareholders with 5% or over of shares in the report period or
carried over to the report period from previous periods
[] Applicable; [V] Not applicable
No commitment issues by shareholders with 5% or over of shares in the report period or carried over to the report period from
previous periods
XI. Engaging and dismissing of CPAs
Whether the Interim Report was audited or not
[] Yes [V] No
Interim Report 2015 is not audited.
XII. Punishment and improvement
[] Applicable; [V] Not applicable
No punishment or improving approach in the report period.
XIII. Disclosure of illegal action causing risk of delisting.
[] Applicable; [V] Not applicable
No such illegal action causes risk of delisting.
XIV. Statement on other material issues
[V] Applicable Not applicable
On February 5, 2015, the Company issued corporation bonds (Phase I 2015) of RMB1.5 billion, with face value of RMB100. The
bonds were issued by online public offering and offline private offering to financial institutes.
The bonds have their interest rate fixed at 5.17% and were listed in Shenzhen Stock Exchange by bidding competition and integrated
agreement in the same time.
The ID of bond was 15 本钢 01 and the listing code was 112236. For details please find the Announcement of Corporation Bond
Public Offering (The 1st Phase 2015) dated February 3, 2015 and Announcement of Listing of Corporation Bond (The 1st Phase
2015) dated May 25, 2015. Both of the announcements are available at http://www.cninfo.com.cn.
23
Bengang Steel Plates Co., Ltd. Interim Report 2015 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 new Bonus Transferred from
Amount Proportion Others Sub-total Amount Proportion
shares shares reserves
I. Shares with trade restriction
75,750 0.00% -19,219 -19,219 56,531 0.00%
conditions
3. Other domestic shares 75,750 0.00% -19,219 -19,219 56,531 0.00%
Domestic natural person
75,750 0.00% -19,219 -19,219 56,531 0.00%
shares
II. Shares without trading limited
3,135,924,250 100.00% 19,219 19,219 3,135,943,469 100.00%
conditions
1. Common shares in RMB 2,735,924,250 87.24% 19,219 19,219 2,735,943,469 87.24%
2. Foreign shares in domestic
400,000,000 12.76% 400,000,000 12.76%
market
III. Total of capital shares 3,136,000,000 100.00% 0 0 3,136,000,000 100.00%
Causation of change in share equity
[V] Applicable Not applicable
Selling of shares held by the directors or supervisors in the report period
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, dilluted 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
II. Number of shareholders and shareholding positions
24
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
in shares
Total of shareholders of preference
Total common shareholders at the shares with restored voting power at
69,626 0
end of the report period end of report period (if any) (See Note
8)
Shareholding status of top 10 shareholders or holding over 5% of the Companys shares
Amount of Frozen or pledged
Conditional
common Changed in Unconditional
Name of the Properties of Share shares held
shares held the report shares held at
shareholder shareholder proportion % at end of Status of shares Amount
at end of period end of period
period
period
Benxi Steel State-owned legal 2,417,768,3
77.10% -146,661,626 2,417,768,374
(Group) Ltd. person 74
GIC PRIVATE
Overseas legal person 0.72% 22,644,061
LIMITED
Domestic natural
Chen Guohua 0.27% 8,412,246
person
BBH A/C
VANGUARD
EMERGING
Overseas legal person 0.26% 8,157,311
MARKETS
STOCK INDEX
FUND
GSIC A/C
MONETARY
Overseas legal person 0.19% 5,967,126
AUTHORITY OF
SINGAPORE
GUOTAI JUNAN
SECURITIES(HO
Overseas legal person 0.15% 4,673,204
NGKONG)
LIMITED
DEUTSCHE
CHINA EQUITY Overseas legal person 0.15% 4,549,984
FUND
Domestic natural
Zhan Changcheng 0.14% 4,356,715
person
DEUTSCHE
INVEST I -
DEUTSCHE
Overseas legal person 0.12% 3,773,400
INVEST I
CHINESE
EQUITIES
Taifook Securities
Company
Overseas legal person 0.11% 3,457,609
Limited-Account
Client
Strategic investors or ordinary legal
persons became among the top 10
shareholders due to placing of new shares None
(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
Rules of Information Disclosing Regarding Changing of Shareholding Status of Listed Companies existing
concert” among the top ten shareholders. among the above shareholders.
Top 10 Holders of Unrestricted Shares
Category of shares
Name of the shareholder Unconditional common shares held at end of report period
Category of shares Amount
Benxi Steel (Group) Ltd. 2,417,768,374 RMB common shares 2,417,768,374
Foreign shares placed
GIC PRIVATE LIMITED 22,644,061 22,644,061
in domestic exchange
Chen Guohua 8,412,246 RMB common shares 8,412,246
BBH A/C VANGUARD EMERGING Foreign shares placed
8,157,311 8,157,311
MARKETS STOCK INDEX FUND in domestic exchange
GSIC A/C MONETARY AUTHORITY OF Foreign shares placed
5,967,126 5,967,126
SINGAPORE in domestic exchange
GUOTAI JUNAN Foreign shares placed
4,673,204 4,673,204
SECURITIES(HONGKONG) LIMITED in domestic exchange
Foreign shares placed
DEUTSCHE CHINA EQUITY FUND 4,549,984 4,549,984
in domestic exchange
Foreign shares placed
Zhan Changcheng 4,356,715 4,356,715
in domestic exchange
DEUTSCHE INVEST I - DEUTSCHE Foreign shares placed
3,773,400 3,773,400
INVEST I CHINESE EQUITIES in domestic exchange
Taifook Securities Company Foreign shares placed
3,457,609 3,457,609
Limited-Account Client in domestic exchange
Action-in-concert among top 10 Benxi Steel & Iron (Group) Co., Ltd., the holding shareholder, has no relationship with any of the other
non-restricted current share holders, top 10 shareholders among the top 10 shareholders, neither being regarded as action-in-concert parties by the
non-restricted current share holders and top Information Disclosure Regulations for Change of Shareholding in PLC The Company is not aware of any
25
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
10 shareholders relationship among the other shareholders, nor of any action-in-concert as 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.
Shareholders among the top 10
Chen Guohua is holding 8,412,246 shares of the Company, including 2,630,714 shares by his ordinary stock
participating in securities margin trading (if
account, and 5,781,532 shares by his credit guaranteed stock account.
any) (see Note 4)
Whether there was any repurchasing deal made between any of the top 10 shareholders and top 10 holders of unrestricted shares in
the report period
[] Yes [V] No
There was not any repurchasing deal made between any of the top 10 shareholders and top 10 holders of unrestricted shares 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.
26
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Chapter VII. Particulars about Preference Shares
[] Applicable; [V] Not applicable
No preference shares in the Company.
27
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Chapter VIII. Particulars about the Directors, Supervisors and Senior
Executives
I. Change of shareholding of directors, supervisors and senior executives
[V] Applicable Not applicable
Shares under
Shares holding at Shares Shares Shares held Shares put Shares under
Status of restriction at
Name Position the beginning of increased this decreased this at the end under restriction restriction at
service beginning of
term (shares) term (shares) term (shares) of term in the period end of period
period
Zhao
Chairman On duty
Zhongmin
Cao Aimin Vice Chairman On duty
Han Ge Director, GM On duty
Zhao Wei Director On duty
Independent
Jin Yongli On duty
Director
Zhong Independent
On duty
Tianli Director
Independent
Zhao Xinan On duty
Director
Chairman of the
Dong Liju supervisory On duty
committee
Han Mei Supervisor On duty
Li Lin Supervisor On duty 375 375 0 0 0 0
Li Employee
On duty
Zhengchun Supervisor
Zhang Employee
On duty
Yanlong Supervisor
Vice GM,
Zhang
Secretary of the On duty
Jichen
Board
Bao Vice General
On duty
Mingwei Manager
Wang Vice General
On duty
Fengmin Manager
Hu Vice General
On duty
Guangyuan Manager
Wang Shu Chairman Resigned 75,375 18,844 56,531 56,531 0 56,531
Independent
Li Kai Resigned
Director
Employee
Li Naiming Resigned
Supervisor
Total -- -- 75,750 0 19,219 56,531 56,531 0 56,531
II. Replacing of directors, supervisors, and executives
[V] Applicable Not applicable
Name Jobs taken Type Date Causation
Wang Shu Chairman Resigned May 21, 2015 Change of job
Zhao Zhongmin Chairman Elected May 21, 2015 Nominated by the Company
Li Kai Independent Director Expiration of term May 21, 2015 Due of term
Zhao Xinan Independent Director Elected May 21, 2015 Nominated by the Company
Li Naiming Employee Supervisor Resigned April 1, 2015 Change of job
Li Zhengchun Employee Supervisor Elected April 1, 2015 Change of job
28
Bengang Steel Plates Co., Ltd. Interim Report 2015 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.
June 30, 2015
In RMB Yuan
Items Closing balance Opening balance
Current asset:
Monetary capital 3,695,567,815.50 9,792,940,409.40
Settlement provision
Outgoing call loan
Financial assets accounted at fair value and fluctuation accounted into current income
Deductive financial assets
Notes receivable 2,946,050,806.58 2,089,039,261.13
Account receivable 330,290,802.90 487,767,042.22
Prepayment 1,450,104,317.98 1,236,314,004.73
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable 7,011,095.89
Dividend receivable
Other account receivable 228,299,673.18 257,708,098.03
Repurchasing of financial assets
Inventories 11,753,444,426.86 11,008,413,817.92
Categorized as asset hold for sale
Non-current asset due in 1 year
Other current asset 703,634,792.56 457,504,509.43
Total of current asset 21,107,392,635.56 25,336,698,238.75
Non-current assets
Loans and payment on other’s behalf disbursed
Sellable financial asset 20,271,278.63 20,271,278.63
Expired investment in possess
Long-term receivable
Long-term share equity investment
Investment real estates
Fixed assets 17,022,394,807.37 17,144,282,253.99
Construction in process 6,899,978,512.78 6,126,175,722.67
Engineering goods 4,677,471.15 90,221,101.46
Fixed asset disposal
Production physical assets
Gas & petrol
29
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Intangible assets 268,490,441.16 271,459,969.75
R&D expense
Goodwill
Long-term amortizable expenses
Deferred income tax asset 198,492,980.51 181,494,465.42
Other non-current asset
Total of non-current assets 24,414,305,491.60 23,833,904,791.92
Total of assets 45,521,698,127.16 49,170,603,030.67
Current liabilities
Short-term loans 15,159,893,677.70 18,187,945,675.93
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities booked as current gain/loss at fair value
Deductive financial liability
Notes payable 974,828,982.41 822,581,591.46
Account payable 6,454,890,655.22 8,780,948,804.18
Advances received 3,162,322,037.70 3,144,418,091.52
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 58,332,639.80 35,383,951.55
Tax payable 19,375,070.81 32,323,181.76
Interest payable 35,765,445.79 26,935,067.99
Dividend payable 156,800,000.00
Other account payable 411,649,202.25 469,316,015.83
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities categorized as hold for sale
Non-current liability due in 1 year 1,026,860,000.00 591,740,000.00
Other current liability
Total of current liability 27,460,717,711.68 32,091,592,380.22
Non-current liabilities
Long-term borrowings 309,402,481.85 814,627,465.85
Bond payable 1,500,000,000.00
Incl. Preference Shares
Perpectual liability
Long-term payable
Long-term employee wage payable
Special payable
Expected liabilities
Differed income 415,696,000.00 427,524,000.00
Deferred income tax liability
Other non-recurring liabilities
Total of non-current liabilities 2,225,098,481.85 1,242,151,465.85
Total of liability 29,685,816,193.53 33,333,743,846.07
Owners equity:
Share capital 3,136,000,000.00 3,136,000,000.00
Other equity instruments
Incl. Preference Shares
Perpectual liability
Capital reserves 9,114,845,542.05 9,114,845,542.05
Less: Shares in stock
Other misc incomes
Special reserves 11,268,844.38 430,777.94
Surplus reserves 961,105,529.85 961,105,529.85
Common risk provision
Retained profit 2,143,387,609.50 2,172,180,473.24
Total of owner’s equity belong to the parent company 15,366,607,525.78 15,384,562,323.08
Minor shareholders’ equity 469,274,407.85 452,296,861.52
Total of owners’ equity 15,835,881,933.63 15,836,859,184.60
Total of liabilities and owners’ equity 45,521,698,127.16 49,170,603,030.67
30
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Legal representative: Zhao Zhongmin CFO: Han Ge Accounting Manager: Wang Shaoyu
2. Balance Sheet of the Parent Company
In RMB Yuan
Items Closing balance Opening balance
Current asset:
Monetary capital 3,435,320,562.90 9,530,304,140.51
Financial assets accounted at fair value and fluctuation accounted into current income
Deductive financial assets
Notes receivable 2,666,076,784.46 1,863,613,673.54
Account receivable 918,847,137.92 388,842,194.63
Prepayment 1,350,001,639.26 1,126,416,683.45
Interest receivable 7,011,095.89
Dividend receivable
Other account receivable 267,661,741.93 302,622,013.53
Inventories 9,873,255,026.51 9,215,120,654.72
Categorized as asset hold for sale
Non-current asset due in 1 year
Other current asset 653,372,921.85 404,119,874.38
Total of current asset 19,164,535,814.83 22,838,050,330.65
Non-current assets
Sellable financial asset 18,303,673.00 18,303,673.00
Expired investment in possess
Long-term receivable
Long-term share equity investment 1,690,981,902.16 1,690,981,902.16
Investment real estates
Fixed assets 14,134,012,320.58 14,089,675,221.83
Construction in process 6,838,207,843.71 6,074,588,463.12
Engineering goods 4,421,189.12 90,221,101.46
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 160,347,658.47 162,000,727.11
R&D expense
Goodwill
Long-term amortizable expenses
Deferred income tax asset 95,857,698.91 81,964,982.51
Other non-current asset
Total of non-current assets 22,942,132,285.95 22,207,736,071.19
Total of assets 42,106,668,100.78 45,045,786,401.84
Current liabilities
Short-term loans 13,765,496,352.65 16,028,552,000.00
Financial liabilities booked as current gain/loss at fair value
Deductive financial liability
Notes payable 974,828,982.41 732,475,382.04
Account payable 6,576,810,986.68 8,914,580,556.14
Advances received 2,362,155,036.98 2,639,010,215.36
Employees’ wage payable 56,983,019.29 32,213,350.61
Tax payable 1,270,036.74 7,979,826.50
Interest payable 32,840,466.35 5,080,000.00
Dividend payable 156,800,000.00
Other account payable 304,664,955.69 327,382,843.61
Liabilities categorized as hold for sale
Non-current liability due in 1 year 1,026,860,000.00 308,740,000.00
Other current liability
Total of current liability 25,258,709,836.79 28,996,014,174.26
Non-current liabilities
Long-term borrowings 226,402,481.85 814,627,465.85
Bond payable 1,500,000,000.00
Incl. Preference Shares
31
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Perpectual liability
Long-term payable
Long-term employee wage payable
Special payable
Expected liabilities
Differed income 415,696,000.00 427,524,000.00
Deferred income tax liability
Other non-recurring liabilities
Total of non-current liabilities 2,142,098,481.85 1,242,151,465.85
Total of liability 27,400,808,318.64 30,238,165,640.11
Owners equity:
Share capital 3,136,000,000.00 3,136,000,000.00
Other equity instruments
Incl. Preference Shares
Perpectual liability
Capital reserves 8,694,693,859.93 8,694,693,859.93
Less: Shares in stock
Other misc incomes
Special reserves 11,268,844.38 430,777.94
Surplus reserves 961,105,529.85 961,105,529.85
Retained profit 1,902,791,547.98 2,015,390,594.01
Total of owners’ equity 14,705,859,782.14 14,807,620,761.73
Total of liabilities and owners’ equity 42,106,668,100.78 45,045,786,401.84
3. Consolidated Income Statement
In RMB Yuan
Occurred current Occurred in previous
Items
term term
I. Total revenue 16,344,915,161.18 19,812,676,281.81
Incl. Business income 16,344,915,161.18 19,812,676,281.81
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 16,230,495,677.88 19,636,793,455.89
Incl. Business cost 14,901,549,350.57 18,139,126,080.72
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves provided
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 31,110,527.33 65,093,865.48
Sales expense 478,349,279.14 372,505,417.15
Administrative expense 377,591,047.45 622,556,447.37
Financial expenses 391,399,627.37 412,018,386.28
Asset impairment loss 50,495,846.02 25,493,258.89
Plus: gains from change of fair value (“-“ for loss)
Investment gains (“-“ for loss) 6,584,315.11 13,555,224.57
Incl. Investment gains from affiliates
Exchange gains (“-“ for loss)
III. Operational profit (“-“ for loss) 121,003,798.41 189,438,050.49
Plus: Non business income 42,223,004.46 10,177,020.38
Incl. Gains from disposal of non-current assets 2,927,761.15 3,039,885.23
Less: Non-business expenses 20,661,325.20 3,912.18
Incl. Loss from disposal of non-current assets 20,661,325.20 3,912.18
IV. Gross profit (“-“ for loss) 142,565,477.67 199,611,158.69
Less: Income tax expenses -2,419,204.92 10,441,665.91
V. Net profit (“-“ for net loss) 144,984,682.59 189,169,492.78
Net profit attributable to the owners of parent company 128,007,136.26 173,894,309.64
Minor shareholders’ equity 16,977,546.33 15,275,183.14
32
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
VI. Net amount of other gains after tax
Net amount of other gains after tax attributable to owners of parent company
(I) Other gains not able to be relocated to gain/loss afterward
1. Change of net liability or asset of beneficiary plan from recalculating
2. The share of other gains in invested entities under equity basis which
are not able to be relocated to gain/loss categories
(II) Other gains which will be relocated to gain/loss in the future
1. The share of other gains in invested entities under equity basis which
are to be relocated to gain/loss categories
2. Gain/loss from change of fair value of sellable financial asset
3. Gain/loss from relocating of investment held to mature which is
relocated to sellable financial asset
4. Effective part of gain/loss from cash flow hedge operation
5. Difference in translating of foreign currency accounts
6. Others
Net amount of other gains after tax attributable to minority shareholders
VII. Total of integrated income 144,984,682.59 189,169,492.78
Total of misc. incomes attributable to the owners of the parent company 128,007,136.26 173,894,309.64
Total misc gains attributable to the minor shareholders 16,977,546.33 15,275,183.14
VIII. Earning per share
(I) Basic earnings per share 0.04 0.06
(II) Diluted earnings per share 0.04 0.06
When merger of entities under common control, the net profit of the entities before merger was RMB0.00 and net profit of the
entities of the previous period was RMB0.00
Legal representative: Zhao Zhongmin CFO: Han Ge Accounting Manager: Wang Shaoyu
4. Income Statement of the Parent Co.
In RMB Yuan
Occurred current Occurred in previous
Items
term term
I. Turnover 17,219,623,672.44 20,787,653,800.76
Less: Operation cost 16,075,332,690.19 19,444,180,864.05
Business tax and surcharge 25,346,724.96 51,657,819.90
Sales expense 389,133,355.08 293,693,640.45
Administrative expense 347,660,967.07 590,161,501.19
Financial expenses 346,995,923.04 335,585,476.87
Asset impairment loss 30,359,562.51 10,725,948.26
Plus: gains from change of fair value (“-“ for loss)
Investment gains (“-“ for loss) 6,584,315.11 12,378,753.42
Incl. Investment gains from affiliates
II. Operational profit (“-“ for loss) 11,378,764.70 74,027,303.46
Plus: Non business income 39,590,798.07 8,707,545.30
Incl. Gains from disposal of non-current assets 1,215,002.38 3,039,885.23
Less: Non-business expenses 20,661,325.20 3,912.18
Incl. Loss from disposal of non-current assets 20,661,325.20 3,912.18
III. Total profit (“-“ for loss) 30,308,237.57 82,730,936.58
Less: Income tax expenses -13,892,716.40 -1,750,217.71
IV. Net profit (“-“ for net loss) 44,200,953.97 84,481,154.29
V. Net amount of other gains after tax
(I) Other gains not able to be relocated to gain/loss afterward
1. Change of net liability or asset of beneficiary plan from recalculating
2. The share of other gains in invested entities under equity basis which
are not able to be relocated to gain/loss categories
(II) Other gains which will be relocated to gain/loss in the future
1. The share of other gains in invested entities under equity basis which
are to be relocated to gain/loss categories
2. Gain/loss from change of fair value of sellable financial asset
3. Gain/loss from relocating of investment held to mature which is
33
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
relocated to sellable financial asset
4. Effective part of gain/loss from cash flow hedge operation
5. Difference in translating of foreign currency accounts
6. Others
VI. Total of other gains 44,200,953.97 84,481,154.29
VII. Earning per share
(I) Basic earnings per share 0.01 0.03
(II) Diluted earnings per share 0.01 0.03
5. Consolidated Cash Flow Statement
In RMB Yuan
Occurred current Occurred in previous
Items
term term
I. Net cash flow from business operation
Cash received from sales of products and providing of services 11,799,485,304.22 14,002,814,894.79
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 increased amount of financial assets on fair value and with changes
accounted into current gain/loss
Cash received as interest, processing fee, and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 317,427,860.94 68,932,133.31
Other cash received from business operation 68,516,099.75 86,797,042.80
Sub-total of cash inflow from business activities 12,185,429,264.91 14,158,544,070.90
Cash paid for purchasing of merchandise and services 13,074,282,379.39 13,713,103,343.10
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 686,825,981.64 783,366,538.26
Taxes paid 239,325,109.29 323,152,298.20
Other cash paid for business activities 529,033,147.81 561,384,991.10
Sub-total of cash outflow from business activities 14,529,466,618.13 15,381,007,170.66
Cash flow generated by business operation, net -2,344,037,353.22 -1,222,463,099.76
II. Cash flow generated by investing
Cash received from investment retrieving 1,550,000,000.00 5,996,000,000.00
Cash received as investment gains 6,584,315.11 13,555,224.57
Net cash retrieved from disposal of fixed assets, intangible assets, and other
1,735,037.03 107,610.00
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 1,558,319,352.14 6,009,662,834.57
Cash paid for construction of fixed assets, intangible assets and other long-term
1,199,505,122.02 1,015,799,020.48
assets
Cash paid as investment 1,747,000,000.00 6,036,000,000.00
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 2,946,505,122.02 7,051,799,020.48
Net cash flow generated by investment -1,388,185,769.88 -1,042,136,185.91
III. Cash flow generated by financing
Cash received as investment
Incl. Cash received as investment from minor shareholders
Cash received as loans 6,138,810,425.77 6,865,596,700.00
Cash received from bond placing
34
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Other financing-related cash received
Subtotal of cash inflow from financing activities 6,138,810,425.77 6,865,596,700.00
Cash to repay debts 8,170,368,302.09 6,160,643,950.04
Cash paid as dividend, profit, or interests 500,641,615.47 432,840,327.28
Incl. Dividend and profit paid by subsidiaries to minor shareholders
Other cash paid for financing activities
Subtotal of cash outflow due to financing activities 8,671,009,917.56 6,593,484,277.32
Net cash flow generated by financing -2,532,199,491.79 272,112,422.68
IV. Influence of exchange rate alternation on cash and cash equivalents -8,429,414.17 996,823.28
V. Net increase of cash and cash equivalents -6,272,852,029.06 -1,991,490,039.71
Plus: Balance of cash and cash equivalents at the beginning of term 9,792,940,409.40 4,574,532,598.83
VI. Balance of cash and cash equivalents at the end of term 3,520,088,380.34 2,583,042,559.12
6. Cash Flow Statement of the Parent Co.
In RMB Yuan
Occurred current Occurred in previous
Items
term term
I. Net cash flow from business operation
Cash received from sales of products and providing of services 12,565,263,147.60 14,949,401,332.02
Tax returned 251,914,135.63 45,691,196.11
Other cash received from business operation 60,667,306.45 81,643,887.99
Sub-total of cash inflow from business activities 12,877,844,589.68 15,076,736,416.12
Cash paid for purchasing of merchandise and services 14,918,723,683.15 14,602,349,222.29
Cash paid to staffs or paid for staffs 639,757,457.40 731,018,365.31
Taxes paid 164,312,175.78 208,539,084.75
Other cash paid for business activities 479,001,645.67 511,566,893.57
Sub-total of cash outflow from business activities 16,201,794,962.00 16,053,473,565.92
Cash flow generated by business operation, net -3,323,950,372.32 -976,737,149.80
II. Cash flow generated by investing
Cash received from investment retrieving 1,550,000,000.00 5,490,000,000.00
Cash received as investment gains 6,584,315.11 12,378,753.42
Net cash retrieved from disposal of fixed assets, intangible assets, and other
1,735,037.03 107,610.00
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 1,558,319,352.14 5,502,486,363.42
Cash paid for construction of fixed assets, intangible assets and other long-term
1,184,557,366.86 1,006,510,420.24
assets
Cash paid as investment 1,747,000,000.00 5,260,000,000.00
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 2,931,557,366.86 6,266,510,420.24
Net cash flow generated by investment -1,373,238,014.72 -764,024,056.82
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 5,338,810,425.77 5,672,286,500.00
Cash received from bond placing
Other financing-related cash received
Subtotal of cash inflow from financing activities 5,338,810,425.77 5,672,286,500.00
Cash to repay debts 6,444,277,209.21 5,527,516,348.80
Cash paid as dividend, profit, or interests 459,378,762.47 376,062,171.80
Other cash paid for financing activities
Subtotal of cash outflow due to financing activities 6,903,655,971.68 5,903,578,520.60
Net cash flow generated by financing -1,564,845,545.91 -231,292,020.60
IV. Influence of exchange rate alternation on cash and cash equivalents -8,429,079.82 3,730,050.43
V. Net increase of cash and cash equivalents -6,270,463,012.77 -1,968,323,176.79
Plus: Balance of cash and cash equivalents at the beginning of term 9,530,304,140.51 4,304,424,513.46
VI. Balance of cash and cash equivalents at the end of term 3,259,841,127.74 2,336,101,336.67
35
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
7. Statement of Change in Owners’ Equity (Consolidated)
Amount of the Current Term
In RMB Yuan
Current term
Owners’ Equity Attributable to the Parent Company
Minor
Other equity instruments Total of
Items Less: Other Common sharehold
Share Prefere Perpetu Capital Special Surplus Retained owners’
Shares in misc risk ers’
capital nce al Others reserves reserves reserves profit equity
stock incomes provision equity
shares liability
3,136,0
I. Balance at end of 9,114,845 430,777.9 961,105,5 2,172,180 452,296,8 15,836,85
00,000.
prev. year ,542.05 4 29.85 ,473.24 61.52 9,184.60
00
Plus: Change of
accounting policy
Correcting
of previous errors
Business
combination under
common control
Others
II. Balance at 3,136,0
9,114,845 430,777.9 961,105,5 2,172,180 452,296,8 15,836,85
beginning of current 00,000.
,542.05 4 29.85 ,473.24 61.52 9,184.60
year 00
III. Amount of change
10,838,06 -28,792,8 16,977,54 -977,250.
in current term (“-“ for
6.44 63.74 6.33 97
decrease)
128,007,1 16,977,54 144,984,6
(I) Total of other gains
36.26 6.33 82.59
(II) Owners input our
retrieving of capital
1. Common shares
input by shareholders
2. Capital input by
other equity holders
3. Amount of share
payment including
owners equity
4. Others
-156,800, -156,800,
(III) Profit distribution
000.00 000.00
1. Providing of surplus
reserves
2. Common risk
provision
3. Allotment to the
-156,800, -156,800,
owners (or
000.00 000.00
shareholders)
4. Others
(IV) Internal transition
of owners equity
1. Capitalizing of
capital reserves (or to
capital shares)
2. Capitalizing of
surplus reserves (or to
capital shares)
3. Making up losses
by surplus reserves
4. Others
10,838,06 10,838,06
(V) Special reserves
6.44 6.44
17,493,56 17,493,56
1. Provided this year
4.59 4.59
-6,655,49 -6,655,49
2. Used this term
8.15 8.15
(VI) Others
3,136,0
IV. Balance at the end 9,114,845 11,268,84 961,105,5 2,143,387 469,274,4 15,835,88
00,000.
of this term ,542.05 4.38 29.85 ,609.50 07.85 1,933.63
00
36
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Amount of Last Year
In RMB Yuan
Previous term
Owners’ Equity Attributable to the Parent Company
Minor
Other equity instruments Total of
Items Less: Other Common sharehold
Share Prefere Perpetu Capital Special Surplus Retained owners’
Shares in misc risk ers’
capital nce al Others reserves reserves reserves profit equity
stock incomes provision equity
shares liability
3,136,0
I. Balance at end of 9,114,845 210,972.6 956,694,1 2,100,587 370,228, 15,678,56
00,000.
prev. year ,542.05 8 03.74 ,079.16 529.55 6,227.18
00
Plus: Change of
accounting policy
Correcting
of previous errors
Business
combination under
common control
Others
II. Balance at 3,136,0
9,114,845 210,972.6 956,694,1 2,100,587 370,228, 15,678,56
beginning of current 00,000.
,542.05 8 03.74 ,079.16 529.55 6,227.18
year 00
III. Amount of change
219,805.2 4,411,426 71,593,39 82,068,3 158,292,9
in current term (“-“ for
6 .11 4.08 31.97 57.42
decrease)
232,804,8 82,068,3 314,873,1
(I) Total of other gains
20.19 31.97 52.16
(II) Owners input our
retrieving of capital
1. Common shares
input by shareholders
2. Capital input by
other equity holders
3. Amount of share
payment including
owners equity
4. Others
4,411,426 -161,211, -156,800,
(III) Profit distribution
.11 426.11 000.00
1. Providing of surplus 4,411,426 -4,411,42
reserves .11 6.11
2. Common risk
provision
3. Allotment to the
-156,800, -156,800,
owners (or
000.00 000.00
shareholders)
4. Others
(IV) Internal transition
of owners equity
1. Capitalizing of
capital reserves (or to
capital shares)
2. Capitalizing of
surplus reserves (or to
capital shares)
3. Making up losses
by surplus reserves
4. Others
219,805.2 219,805.2
(V) Special reserves
6 6
35,149,38 35,149,38
1. Provided this year
0.86 0.86
-34,929,5 -34,929,5
2. Used this term
75.60 75.60
(VI) Others
3,136,0
IV. Balance at the end 9,114,845 430,777.9 961,105,5 2,172,180 452,296, 15,836,85
00,000.
of this term ,542.05 4 29.85 ,473.24 861.52 9,184.60
00
37
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
8. Statement of Change in Owners’ Equity (Parent Co.)
Amount of the Current Term
In RMB Yuan
Current term
Other equity instruments Less: Total of
Items Share Capital Other misc Special Surplus Retained
Preferenc Perpetual Shares in owners’
capital Others reserves incomes reserves reserves profit
e shares liability stock equity
I. Balance at end of 3,136,000 8,694,693,8 961,105,52 2,015,390 14,807,620,
430,777.94
prev. year ,000.00 59.93 9.85 ,594.01 761.73
Plus: Change of
accounting policy
Correcting
of previous errors
Others
II. Balance at
3,136,000 8,694,693,8 961,105,52 2,015,390 14,807,620,
beginning of current 430,777.94
,000.00 59.93 9.85 ,594.01 761.73
year
III. Amount of change
10,838,066. -112,599, -101,760,97
in current term (“-“ for
44 046.03 9.59
decrease)
44,200,95 44,200,953.
(I) Total of other gains
3.97 97
(II) Owners input our
retrieving of capital
1. Common shares
input by shareholders
2. Capital input by
other equity holders
3. Amount of share
payment including
owners equity
4. Others
-156,800, -156,800,00
(III) Profit distribution
000.00 0.00
1. Providing of surplus
reserves
2.Allotment to the
-156,800, -156,800,00
owners (or
000.00 0.00
shareholders
3. Others
(IV) Internal transition
of owners equity
1. Capitalizing of
capital reserves (or to
capital shares)
2. Capitalizing of
surplus reserves (or to
capital shares)
3. Making up losses
by surplus reserves
4. Others
10,838,066. 10,838,066.
(V) Special reserves
44 44
17,493,564. 17,493,564.
1. Provided this year
59 59
-6,655,498. -6,655,498.
2. Used this term
15 15
(VI) Others
IV. Balance at the end 3,136,000 8,694,693,8 11,268,844. 961,105,52 1,902,791 14,705,859,
of this term ,000.00 59.93 38 9.85 ,547.98 782.14
38
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Amount of Last Year
In RMB Yuan
Previous term
Other equity instruments Less: Total of
Items Share Capital Other misc Special Surplus Retained
Preferenc Perceptua Shares in owners’
capital Others reserves incomes reserves reserves profit
e shares l liability stock equity
I. Balance at end of 3,136,000 8,694,693,8 956,694,10 2,132,487 14,920,086,
210,972.68
prev. year ,000.00 59.93 3.74 ,759.02 695.37
Plus: Change of
accounting policy
Correcting
of previous errors
Others
II. Balance at
3,136,000 8,694,693,8 956,694,10 2,132,487 14,920,086,
beginning of current 210,972.68
,000.00 59.93 3.74 ,759.02 695.37
year
III. Amount of change
4,411,426.1 -117,097, -112,465,93
in current term (“-“ for 219,805.26
1 165.01 3.64
decrease)
44,114,26 44,114,261.
(I) Total of other gains
1.10 10
(II) Owners input our
retrieving of capital
1. Common shares
input by shareholders
2. Capital input by
other equity holders
3. Amount of share
payment including
owners equity
4. Others
4,411,426.1 -161,211, -156,800,00
(III) Profit distribution
1 426.11 0.00
1. Providing of surplus 4,411,426.1 -4,411,42
reserves 1 6.11
2.Allotment to the
-156,800, -156,800,00
owners (or
000.00 0.00
shareholders
3. Others
(IV) Internal transition
of owners equity
1. Capitalizing of
capital reserves (or to
capital shares)
2. Capitalizing of
surplus reserves (or to
capital shares)
3. Making up losses
by surplus reserves
4. Others
(V) Special reserves 219,805.26 219,805.26
35,149,380. 35,149,380.
1. Provided this year
86 86
-34,929,575 -34,929,575
2. Used this term
.60 .60
(VI) Others
IV. Balance at the end 3,136,000 8,694,693,8 961,105,52 2,015,390 14,807,620,
430,777.94
of this term ,000.00 59.93 9.85 ,594.01 761.73
39
Bengang Steel Plates Co., Ltd. Interim Report 2015 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 totalled 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 2015, the capital shares of Bengang Steel Plates Co., Ltd were amounted to 3,136,000,000 shares. The business
license was numbered 210000004931633. The registered address is: 18th Gangtie Road, Pingshan, Benxi, Liaoning Province. The
registered capital is RMB3,136,000,000. The legal representative is Zhao Zhongmin.
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 hazardous chemical materials.
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The above financial accounts were approved by the Board of Directors on August 3, 2015.
As of June 30, 2015, the consolidating range of the consolidated accounts is covering the following
subsidiaries:
Name of the subsidiaries
Guangzhou Bengang Trade Co., Ltd.
Shanghai Bengang Metallurgy Tech. Ltd.
Bengang Steel Plate Liaoyang Orel Ball Co., Ltd.
Dalian Benruitong Automobile Material Technologies Co., Ltd.
Changchun Bengang Steel Sales Ltd.
Haerbin Bengang International Trading Ltd.
Nanjing Bengang Steel Material Sales Ltd.
Wuxi Bengang Steel Sales Ltd.
Xiamen Bengang Steel Sales Ltd.
Yantai Bengang Steel Sales Ltd.
Tianjin Bengang Steel Trading Ltd.
Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd.
No change made to the consolidating range in the report period.
IV. Basis of Preparation
1. Basis of preparation
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 – the basic rules and multiple principles, as well as the proceeding
instructions, interpretations, and other rules (regarded collectively as “The Enterprise Accounting Standard”, and also the Information
Disclosure Rules No.15 – General rules of financial statements issued by China Securities Regulatory Commission.
2. Perpetual operation
The Company is in normal and healthy operation, and is able to carry on perpetually.
V. Material Accounting Policies and Accounting Estimations
Note to detailed accounting policies and estimations:
The following contents are covering the detailed accounting policies and estimations made in accordance with the business practice
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of the Company.
1. 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.
2. Accounting period
A fiscal year starts from January 1 and ends at December 31 of a calendar year.
3. Business circle
The Companys business circle covers 12 months.
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. Business combination under common control
The assets and liabilities that the Company acquired in a business combination shall be measured on the basis of their carrying
amount of aquirees assets, liabilities (as well as the goodwill arising from the business combination) in the consolidated
financial statement of the ultimate controller on the combining date.
As for the balance between the carrying amount of the net assets obtained by the Company and the carrying amount of the
consideration paid by it (or the total par value of the shares issued), capital reserve needs to be adjusted. If the capital reserve is
not sufficient, any excess shall be adjusted against retained earnings.
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.
The Company shall recognize the positive balance between the combination costs and the fair value of the identifiable net assets
it obtains from the acquiree as goodwill. The Company shall treat the negative balance between the combination costs and the
fair value of the identifiable net assets it obtains from the acquiree into the profits and losses of the current period.
The intermediary costs and relevant management fee for the business combination now 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 for the business combination shall be recorded into the initial
recognition amount of equity securities.
6. Preparing method of consolidated financial statements
1. Consolidation range
The scope of consolidation of consolidated financial statements is determined based on control. All the subsidies have
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been consolidated into the scope of consolidation for this period ended.
2. Consolidation process
2. Procedure of consolidation
The consolidated financial statements shall be presented by the parent based on the financial statements of the
parent and its subsidiaries, and using other related information. When preparing consolidated financial
statements, the parent shall consider the entire group as an accounting entity, adopt uniform accounting
policies and apply the requirements of Accounting Standard for Business Enterprises related to recognition,
measurement and presentation. The consolidated financial statements shall reflect the overall financial
position, operating results and cash flows of the group.
The accounting policy and accounting period of the subsidiaries within the consolidation scope shall be in accordance with
those of the Company. If not, it is necessary to make the adjustment according to the Companys accounting policies and
accounting period when preparing the consolidated financial statements.
For subsidiaries through acquisition that are now under common control, the financial statements are adjusted according to fair
value of identifiable net assets on the acquisition date.
For subsidiaries through acquisition that are under common control, the assets, liabilities (as well as the goodwill arising from
purchasing the subsidiary by the ultimate controller) are adjusted according to book value of net assets in the financial
statements of the ultimate controller.
The owners interests, profit or loss, and comprehensive income of the subsidiary attributable to the non-controlling
shareholders shall be presented separately in the shareholders equity of the consolidated balance sheet and under the item of net
profit of the consolidated statement of comprehensive income and under the item of total comprehensive income. Where losses
assumed by the minority exceed the minoritys interests in the beginning equity of a subsidiary, the excess shall be charged
against the minoritys interests.
(1) Increase of new subsidiary and business
If the 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 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 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 has been in existence since the date the ultimate controlling party first obtained
control.
When the Company becomes capable of exercising control over an investee under common control due to additional
investment or other reasons, Adjustment shall be made as if the reporting entity after the combination has been in existence
since the date the ultimate controlling party first obtained control. The investment income recognized between date of
previously obtaining equity investment and the date the acquiree and acquirer are under common control, which is later, and
the combining date, other comprehensive income and other changes of net assets arising from the equity investment
previously-held before obtaining the control the acquiree shall be adjusted against the prior retained earnings of the
comparative financial statements and the current profit or loss respectively.
If it is now under common control, the 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 Companys consolidated statement of cash flows.
When the Company becomes capable of exercising control over an investee now under common control due to additional
investment or other reasons, the acquirer shall remeasure its previously held equity interest in the acquiree to its fair value at
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the acquisition date. The difference between the fair value and the carrying amount shall be recognized as investment income
for the period when the acquisition takes place. When the previously-held equity investment is accounted for under the
equity method, any other comprehensive income previously recognized in relation to the acquirees equity changes shall be
transferred to profit or loss for the current period when the acquisition takes place. Other comprehensive income arising from
remeasurement of defined benefit plan is excluded.
(2) Disposing subsidiary or business
1. General treatment
If the Company disposes a subsidiary during a reporting period, the revenue, expenses and profits of the subsidiary from
the beginning of the reporting period to disposal date are included in the Companys consolidated statement of
comprehensive income. The cash flow of the subsidiaries from the beginning of the reporting period to disposal date is
included in the Companys consolidated statement of cash flows.
When the Company loses control over an investee due to partial disposal or other reasons, the acquirer shall remeasure
the remaining equity interests in the acquiree to its fair value at the acquisition date. The difference, between sums of
consideration received for disposal equity shares and fair value of the remaining shares, and sums of share of net assets of
the subsidiary calculated continuously from the acquisition date or the combination date based on the previous
shareholding proportion and goodwill, shall be recognized as investment income for the period when the Company loses
control over acquiree. When the previously-held equity investment is accounted for under the equity method, any other
comprehensive income previously recognized in relation to the acquirees equity changes, and other equity changes rather
than changes from net profit, other comprehensive income and profit distribution, shall be transferred to investment
income for the current period when the Company loses control over acquiree. Other comprehensive income arising from
remeasurement of defined benefit plan is excluded.
2. Disposing the subsidiary by multiple transactions
Where the Company loses control of a subsidiary in multiple transactions in which it disposes of its subsidiary in stages,
in determining whether to account for the multiple transactions as a single transaction, the Company shall consider all of
the terms and conditions of the transactions and their economic effects. One or more of the following may indicate that
the Company shall account for the multiple arrangements as a single transaction:
(a) Arrangements are entered into at the same time or in contemplation of each other;
(b) Arrangements work together to achieve an overall commercial effect;
(c) The occurrence of one arrangement is dependent on the occurrence of at least one other
arrangement; and
(d) One arrangement considered on its own is not economically justified, but it is economically
justified when considered together with other arrangements.
If each of the multiple transactions forms part of a bundled transaction which eventually results in loss of control of the
subsidiary, these multiple transactions shall be accounted for as a single transaction. In the consolidated financial
statements, the difference between the consideration received and the corresponding proportion of the subsidiarys net
assets in each transaction prior to the loss of control shall be recognized in other comprehensive income and transferred
to the profit or loss when the Company eventually loses control of the subsidiary.
If each of the multiple transactions which eventually results in loss of control of the subsidiary do not form part of a
bundled transaction, apply the treatment of disposing partial long-term equity investments in a subsidiary without loss of
control prior to the loss of control. After the loss of control, apply the treatment of disposing the subsidiary in common
cases.
(3) Acquiring the subsidiary’s equity interest held by non-controlling shareholders
Where the Company has acquired a subsidiarys equity interest held by non-controlling shareholders, the
difference between the increase in the cost of long-term investments as a result of acquisition of
non-controlling interests and the share of net assets of the subsidiary calculated continuously from the
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acquisition date or the combination date based on the new shareholding proportion shall be adjusted to the
capital reserve( capital premium or share premium) in the consolidated financial statements. If the balance
of the capital reserve is not sufficient, any excess shall be adjusted against retained earnings.
(4) Disposing partial long-term equity investments in a subsidiary without loss of control
When the Company disposes of a portion of the long-term equity investments in a subsidiary without loss of control, the
difference between the amount of the consideration received and the corresponding portion of the nest assets of the
subsidiary calculated continuously from the acquisition date or the combination date related to the disposal of the long-term
equity investments shall be adjusted to the capital reserve (capital premium or share premium) in the consolidated financial
statements. If the balance of the capital reserve is not sufficient, any excess shall be adjusted against retained earnings.
7. Joint arrangement classification and accounting treatment
A joint arrangement is classified as either a joint operation or joint venture.
When the Company is joint operator of joint arrangement and has rights to the assets, and obligations for the liabilities, relating
to the arrangement, it is classified as joint operation.
A joint operator shall recognize the following items in relation to its interest in a joint operation, and account for them in
accordance with relevant accounting standards:
(1) Its solely-held assets, and its share of any assets held jointly;
(2) Its solely-assumed liabilities, and its share of any liabilities incurred jointly;
(3) Its revenue from sales of its share of the output arising from the joint operation;
(4) Its share of the revenue from the sale of the output by the joint operation; and
(5) Its solely-incurred expenses and its share of any expenses incurred jointly.
8. 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.
9. Translation of businesses and accounts in foreign currency
1. Trade in foreign currencies
Foreign currency transactions are translated into RMB at the current rate at the day of transactions.
The foreign currency monetary items shall be translated at the spot exchange rate on the balance sheet date. The balance of
exchange arising from the difference between the spot exchange rate on the balance sheet date and the spot exchange rate at the
time of initial recognition or prior to the balance sheet date, except those arising from the raising of special foreign debt for the
purchase or construction of capitalizable assets thus shall be capitalized according to the borrowing costs capitalization principle,
shall be recorded into the profits and losses at the current period. 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 of disposal or capital reserves.
2. Translation of foreign currency financial statements
The asset and liability items in the statement of financial position shall be translated at a spot exchange rate on the balance
sheet date. Among the owner's equity items, except the ones as "undistributed profits", others shall be translated at the spot
exchange rate at the time when they are incurred. The income and expense items in the statement of comprehensive income
shall be translated at the spot exchange rate of the transaction date.
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When disposing an overseas business, the Company shall shift the balance, which is presented under the items of the owner's
equities in the statement of financial position and arises from the translation of foreign currency financial statements related to
this oversea business, into the disposal profits and losses of the current period. If the overseas business is disposed of partially,
the Company 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.
10. Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
1. Categorizing of financial instruments
The classification of financial assets and financial liabilities at initial recognition are as follows: 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.
2. Recognition 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
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
reserve.
The difference between the proceeds of the disposal and the carrying value shall be recognized as investment income. And the
related fair value change in the shareholders equity shall 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. Basis of recognition and accounting of financial asset transferring
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.
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 of financial liability recognition
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 repo 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
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and the considerations it has paid (including the noncash assets it has transferred out and the new financial liabilities it has assumed)
shall be recorded into the profits and losses of the current period.
5. Determination of the fair value
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.
6. Impairment provision of the financial assets (not including accounts receivables)
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 drops 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.
The criteria for “serious” level of the decrease of fair value of available-for-sale financial instruments are as follows: the
decrease of fair value for the equity investment with the active transaction in a market of good liquidity is normally 50%. The
decrease of fair value of the equity investment without good market liquidity is normally 30%; the criteria for
“non-temporary” decrease of fair value is continuous decrease over 12 months; the cost of investment is based on the purchase
price.
(2) Impairment of held-to-maturity investment
The impairment of the held-to-maturity investment can be measured by reference to the measurement of the impairment of
accounts receivables.
11. Account receivable
(1) Bad debt provision on receivable accounts with major amount individually
Basis of recognition or standard amount of individual account Balance of account receivable RMB10 million; other account
with large amount receivable RMB5 million or over.
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
Basis of bad debt provision 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.
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(2) Receivable accounts on which bad debt provisions are provided as groups
Name of the portfolio Basis of providing bad debt provisions
Receivable account with minor amount and tested individually
Age analysis method
and not impaired
Accounts on age basis in the portfolio:
[V] ApplicableNot applicable
Rate of provision on other receivable
Age Rate of provision on receivable accounts
accounts
1-2 yrs 5.00% 5.00%
2-3 yrs 20.00% 20.00%
Over 3 yrs 100.00% 100.00%
Accounts on percentage basis in the portfolio:
[] Applicable; [V] Not applicable
Accounts 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 account shall be tested for impairment
Basis of bad debt provision
individually and bad debt provision shall be provided at the
estimated unrecoverable amount.
12. Inventories
1. Categories of inventory
Inventories include material in transit, raw material, low-valued consumables, work in process, finished goods, materials for
consigned processing, etc.
2. Pricing of inventory on delivery
When inventories are delivered, the effective costs are recognized by weighted average method.
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.
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
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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.
Net realizable value of inventories are market price at balance date unless any indication that the market price at balance date appears
abnormally.
The net realizable value of inventory at the year-end is based on the market price at the balance sheet date.
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 basis
The Company use perpetual inventory system.
5. Amortizing of low-value consumables and packaging materials
(1)Low-valued consumables should be amortized in full amount on issuance.
(2)Packing materials should be amortized in full amount on issuance.
13. Categorizing of asset held for sale
14. Long-term equity investment
1. Criteria of join control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities require the unanimous consent of the parties sharing control.
Significant influence is the power to participate in the financial and operating policy decisions of the investee but not control
or join control of those policies. If the Company could exert significant influence over the investee, the investee is the
associate of the Company.
2. The initial cost of long-term equity investment from business acquisition
(1) Long-term equity investment formed by merger
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) Long-term equity investment obtained by other ways
The initial cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost which is
actually paid.
Long-term equity investment obtained by placing of equity stocks is recognized for initial investment cost at the fair value of
the stock.
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.
Long-term equity investment obtained through debt reorganizing is recognized for initial investment cost at fair value.
3. Subsequent measurement and profit or loss recognition
(1) Cost method
The Company adopts cost method for the long term investment in subsidiary company. 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.
(2) Equity method
A long-term equity investment in an associate or a joint venture shall be accounted for using the equity method. Where the
initial investment cost of a long-term equity investment exceeds tan investors interest in the fair values of an investees
identifiable net assets at the acquisition date, no adjustment shall be made to the initial investment cost. Where the initial cost
is less than the investors interest in the fair values of the investees identifiable net assets at the acquisition date, the difference
shall be credited to profit or loss for the current period, and the cost of the long-term equity investment shall be adjusted
accordingly.
The Company shall recognize its share of the investees net profits or losses, as well as its share of the investees other
comprehensive income, as investment income or losses and other comprehensive income, and adjust the carrying amount of
the investment accordingly. The carrying amount of the investment shall be reduced by the portion of any profit distributions
or cash dividends declared by the investee that is attributable to the investor. The investors share of the investees owners
equity changes, other than those arising from the investees net profit or loss, other comprehensive income or profit
distribution, and the carrying amount of the long-term equity investment shall be adjusted accordingly.
The investor shall recognize its share of the investees net profits or losses after making appropriate adjustments based on the
fair values of the investees identifiable net assets at the acquisition date.
The unrealized profits or losses resulting from transactions between the investor and its associate or joint venture shall be
eliminated in proportion to the investors equity interest in the investee, based on which investment income or losses shall be
recognized. Any losses resulting from transactions between the investor and investee which are attributable to asset
impairment shall be recognized in full.
If the transaction of investment or sale of assets among the Company and associate and joint venture and the assets is a
business, it shall apply the treatment mentioned in Note 2 (5) “The accounting treatment for Business combination under/now
under common control” and Note 2 (6) “Consolidation of Financial Statements”.
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.
(3) Disposal of long-term equity investment
On disposal of a long-term equity investment, the difference between the proceeds actually received and the carrying amount
shall be recognized in profit or loss for the current period.
When the previously-held equity investment is accounted for under the equity method, any other comprehensive income
previously recognized shall be accounted for on the same basis as would have been required if the investee had directly
disposed of the related assets or liabilities.
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Those owner's equity recognized other than the change of net profits or loss, other comprehensive income, profit distribution
of the invested entity shall be transferred proportionally into profit or loss of current period, other comprehensive income
arising from the remeasurement of defined benefit plan is excluded.
When an investor can no longer exercise joint control of or significant influence over an investee due to partial disposal of
equity investment or other reasons, the remaining equity investment shall be accounted for in accordance with “Accounting
Standard for Business Enterprises No. 22-Financial instruments: recognition and measurement”. The difference between the
fair value and the carrying amount at the date of the loss of join control or significant influence shall be charged to profit or
loss for the current period. When the previously-held equity investment is accounted for under the equity method, any other
comprehensive income previously recognized shall be accounted for on the same basis as would have been required if the
investee had directly disposed of the related assets or liabilities for the current period upon discontinuation of the equity
method.
Those owner's equity recognized other than the change of net profits or loss, other comprehensive income, profit distribution
of the invested entity shall be transferred into profit or loss of current period in full when the Company cease to adopt the
equity method.
When the Company can no longer exercise control over an investee due to partial disposal of equity investment or other
reasons, and with the retained interest, still has joint control of, or significant influence over, the investee, when preparing the
individual financial statements, the investor shall change to the equity method and adjust the remaining equity investment as if
the equity method had been applied from the date of the first acquisition. If the investor cannot exercise joint control of or
significant influence over the investee after partial disposal of equity investment, the remaining equity investment shall be
accounted for in accordance with “Accounting Standard for Business Enterprises No.22-Financial instruments: Recognition
and Measurement”, and the difference between the fair value and carrying amount at the date of the loss of control shall be
charged to profit or loss for the current period.
When the equity investment disposed is acquired through business combination due to additional investment or other reasons,
in stand-alone financial statement, the remaining equity investment shall adopt cost method or equity method, any other
comprehensive income and other owners interests previously recognized of the previously-held equity investment under the
equity method shall be transferred proportionally.
For those remaining equity investment accounted for in accordance with “Accounting Standard for Business Enterprises
No.22-Financial instruments: Recognition and Measurement” after disposal, other comprehensive income and other owners
interests previously recognized shall be transferred to profit or loss in full.
15. 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 buildings self-constructed or developed for rent after completion or
buildings being built or developed 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.
16. Fixed assets
(1) Basis of recognition
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.
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(2) Depreciation
Categories Basis of depreciation Depreciation Period Retain value rate Annual depreciation ratio
Straight average on
Houses & buildings 8-40 yrs 0 2.50-12.50%
period
Straight average on
Equipment & machinery 4-18 years 3% 5.39-24.25%
period
Vehicle and other Straight average on
5-18 years 3% 5.39-19.40%
equipment period
(3) 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 unrecognized
financing expenses.
17. Construction-in-process
The cost of fixed assets transferred from a construction in progress includes all the necessary expenses incurred for bringing the
asset to the expected conditions for use. Construction in progress is transferred to fixed asset when it has reached its working
condition for its intended use. In case the final project accounts have not been completed or approved, the asset shall be
transferred to fixed assets at an estimated value by considering project budget, cost or actual cost of the project and etc., and the
deprecation of the said fixed assets shall be provided in accordance with the Companys accounting policy since it has reached
its working condition for its intended use. After the project accounts have been approved, the estimated values shall be adjusted
based on the actual cost, but those provided deprecation shall not be adjusted.
18. Borrowing expenses
1. Recognition principles for capitalizing of borrowing expenses
The borrowing costs shall include interest on borrowings, amortization of discounts or premiums on borrowings, ancillary
expenses, and exchange balance on foreign currency borrowings.
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset satisfying the conditions of
capitalizing, are capitalized and accounted as cost of related asset. Other borrowing expenses are recognized as expenses according to
the occurred amount, and accounted into gain/loss of current term.
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.
When a borrowing expense satisfies all of the following conditions, it is capitalized:
(1) Asset expense has already occurred. Asset expenses include cash payment, non-cash asset transferring, or undertaking of debt
with interest done for purchasing or producing of assets.
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(2) The borrowing expense has already occurred.
(3) Purchasing or production activity, which is necessary for the asset to reach the useful status, has already started.
2. Capitalizing period of borrowing expenses
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.
Capitalizing of borrowing expenses terminates when the purchased or produced asset reaches the supposed useful or saleable status.
When purchasing or producing of part of the asset, which satisfies the capitalizing conditions, has finished and could be used
separately, capitalizing of borrowing expenses for this part of asset is terminated.
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
If the construction or production of assets satisfying the capitalizing conditions is suspended abnormally for over 3 months,
capitalizing of borrowing expenses shall be suspended. Borrowing expenses occurred in the suspension period are recognized as
expenses and recorded to current income account, until the construction or production is resumed. If the suspension is an essential
process to make the asset usable or sellable, capitalizing of borrowing expenses shall be carried forward.
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 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.
19. Biological assets
20. Petroleum assets
21. Intangible assets
(1) Price, useful age, and impairment test
1. Evaluating of intangible assets
(1) Initial measurement is based on cost upon acquisition
The cost of an intangible asset on acquisition include the purchase price, relevant taxes and other necessary disbursements
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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.
(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
At the end of the year, review the amortization method and finite useful life of intangible life.
There is no difference of amortization method and useful life as expected.
3. Determination of intangible assets with uncertain useful lives
At the end of the year, review the amortization method and finite useful life of intangible life.
There is no difference of amortization method and useful life as expected.
(2) Accounting policies for expenses of internal research
1. Classification criteria for internal research phase and development phase
The specific standards of differentiating research stage and development stage of internal R&D projects：
Research stage is the planned research for obtaining knowledge of new technology, the preparation for further development.
Development stage is applying specific researching results and other technologies to some plans or designs to produce new material,
devices and products.
2. 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 the Company 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.
22. Impairment of long-term assets
For long-term assets under the cost model such as fixed assets, construction in progress, intangible assets etc., the Company shall
perform impairment tests at the period end if there is clear indication of impairment.
If the recoverable amounts of long-term assets are less than their carrying amounts, the carrying amounts of the assets shall be written
down to their recoverable amounts. The write-downs are recognized as impairment losses and charged to current profit and loss. The
recoverable amounts of long-term assets are the higher of their fair values less costs to sell and the present values of the future cash
flows expected to be derived from the assets. The Company shall estimate its recoverable amount on an individual basis. Where it is
difficult to do so, it shall determine the recoverable amount of the group assets on the basis of the asset group to which the asset
belongs. The term "group assets” refers to a minimum combination of assets by which the cash flows could be generated
independently
The goodwill shall be subject to an impairment test at least at the end of each year.
When the Company makes an impairment test of assets, it shall, as of the purchasing day, apportion the carrying value of the business
reputation formed by merger of enterprises to the relevant asset groups by a reasonable method. Where it is difficult to do so, it shall
be apportioned to the relevant combinations of asset groups.
When apportioning the carrying value of the business reputation to the relevant asset groups or combinations of asset groups, it shall
be apportioned on the basis of the proportion of the fair value of each asset group or combination of asset groups to the total fair
value of the relevant asset groups or combinations of asset groups. Where it is difficult to measure the fair value reliably, it shall be
apportioned on the basis of the proportion of the carrying value of each asset group or combination of asset groups to the total
carrying value of the relevant asset groups or combinations of asset groups.
When making an impairment test on the relevant asset groups or combination of asset groups containing business reputation, if any
evidence shows that the impairment of asset groups or combinations of asset groups is possible, the Company shall first make an
impairment test on the asset groups or combinations of asset groups not containing business reputation, calculate the recoverable
amount, compare it with the relevant carrying value and recognize the corresponding impairment loss. Then the Company shall make
an impairment test of the asset groups or combinations of asset groups containing business reputation, and compare the carrying
value of these asset groups or combinations of asset groups (including the carrying value of the business reputation apportioned
thereto) with the recoverable amount. Where the recoverable amount of the relevant assets or combinations of the asset groups is
lower than the carrying value thereof, it shall recognize the impairment loss of the business reputation.
Impairment losses on long-term assets shall not be reversed in subsequent accounting periods once recognized.
23. Long-term expenses to be amortized
Long-term expenses are those which already occurred and amortizable to the current period and proceeding periods for over one year.
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Long-term expenses are amortized straightly to the beneficiary period.
24. Employee wages
(1) Accounting treatment for short employee benefit
The Company shall recognized , in the accounting period in which an employee provides service, actually
occurred short-term employee benefits as a liability, with a corresponding charge to the profit or loss or cost
of an asset for the current period.
Payments made by an enterprise of social security contributions for employees, payments of housing funds,
and union running costs employee education costs provided in accordance with relevant requirements shall, in
the accounting period in which employees provide services, be calculated according to prescribed bases and
percentages in determining the amount of employee benefits.
The employee benefits which are non-monetary benefits shall be measured at fair value if it could be
measured reliably.
(2) Accounting treatment of post-employment benefits
1) Defined contribution plan
The Company shall recognize, in the accounting period in which an employee provides service, pension
fund and unemployment fund for employees as a liability according to the local government regulations. The
amount shall be calculated according to local prescribed bases and percentages in determining the amount of
employee benefits, with a corresponding charge to the profit or loss or cost of an asset for the current period.
2) Defined benefit plan
None
3) Accounting treatment of termination benefits
The Company which provides termination benefits to employees shall recognize an employee benefits
liability for termination benefits, with a corresponding charge to the profit or loss for the current period, at the
earlier of the following dates:
(1) When the Company cannot unilaterally withdraw the offer of termination benefits because of an
employment termination plan or a curtailment proposal
(2) When the Company recognizes costs or expenses related to a restructuring that involves the payment of
termination benefits
4) Accounting treatment of other long-term employee benefits payable
None
25. Anticipated liabilities
1) Recognition Criteria of estimated liabilities
The obligation pertinent to a Contingency (litigation, guarantees, loss contract, restructuring) shall be recognized as an estimated
liabilities when the following conditions are satisfied simultaneously:
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
(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 shall be calculated and determined in accordance with all
possible outcomes and the relevant probabilities.
When all or some of the expenses necessary for the liquidation of an estimated debts of an enterprise is expected to be
compensated by a third party, the compensation shall be separately recognized as an asset only when it is virtually certain that
the reimbursement will be obtained. The amount recognized for the reimbursement shall not exceed the book value of the
estimated debts.
26. Disburse of shares
27. Preference shares, perpetual debit, and other financial instruments
28. Revenue
1. Recognition Criteria for the Revenue from sale of goods
(1) The general principle of revenue recognition and measurement
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) The specific criteria of revenue recognition and measurement
The amount of sale of goods is recognized according to the contract or agreement terms.
2. Recognition Criteria for the Revenue from alienating of Assets Use Rights
(1) The general principle
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.
(2) The evidence of recognition of Revenue from alienating of Assets Use Rights
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(1) The agreement alienating of Assets Use Rights of has been signed and provided to users; and
(2) The timing for collecting the fee is due.
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 shall be recognized in the current
profit and loss, and no revenue from the providing of labor services shall be recognized.
29. 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. Recognition
If clear evidence shows that conditions for granting the finance support fund can be met and the finance
support fund is supposed to be received, the amount of receivable can be recognized.
If no clear evidence shows that the Company is expected to receive finance support or the conditions for
granting the finance support fund can be met, recognized the government subsidies when the conditions are
met and the amount are received.
3. 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 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.
30. Deferred income tax assets/ deferred income tax liabilities
The Company shall recognize the deferred income tax liabilities arising from a deductible temporary difference to the extent of
the amount of the taxable income which it is most likely to obtain and which can be deducted from the deductible temporary
difference.
As for any deductible loss or tax deduction that can be carried forward to the next year, the corresponding deferred income tax
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assets shall be determined to the extent that the amount of future taxable income to be offset by the deductible loss or tax
deduction to be likely obtained.
All taxable temporary differences shall be recognized as deferred tax liabilities with certain limited exceptions.
Exceptions when deferred tax assets and deferred tax liabilities are not recognized include: initial recognition of goodwill; initial
recognition of an asset or liability in a transaction or event that is not a business combination and at the time of the transaction,
affects neither accounting profit nor taxable profit (tax loss)
The Company shall offset deferred tax assets and deferred tax liabilities if, and only if: (a) the entity has a legally enforceable
right to set off current tax assets against current tax liabilities; and (b) the deferred tax assets and the deferred tax liabilities
relate to income taxes levied by the same taxation authority on either:(i) the same taxable entity; or (ii) different taxable entities
which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities
simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled
or recovered.
31. Leasing
1) Accounting treatment of operating lease
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 lessor has shouldered any expense related to the lease which shall 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 shall 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 Financial leasing
1) 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 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.
32. Other significant accounting policies and change of accounting estimate
33. Change of material accounting policies and estimations
(1) Material accounting policies
[] Applicable; [V] Not applicable
(2) Material estimations
[] Applicable; [V] Not applicable
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34. Others
VI. Taxation
1. Types and rates of taxes
Class of tax Tax basis Tax rate
Calculated on tax law from selling goods
and taxable services based on the
VAT calculation of output tax, after deduction of 17%
input tax deductibility of the current
period, the balance part of VAT payable
Calculated and paid according to the tax
Consumption tax
code
Operational tax Revenue of leasing and taxable services 5%
Paid upon actual amount of operational tax
City maintenance and construction tax 7%、5%
and VAT
Enterprise income tax Taxable income 25%
Paid upon actual amount of operational tax
Education surcharge 3%、2%
and VAT
The balance of the buildings original costs
Property tax 1.2%
minus 30% of original costs
Statement on different taxpayers within the Company
Name of the taxpayer Tax rate
2. Preference tax rate
None
3. Others
VII. Notes to Consolidated Financial Statements
1. Monetary fund
In RMB
Items Closing balance Opening balance
Cash in stock 71,255.41 14,168.01
Bank deposit 3,520,017,124.93 9,283,113,740.33
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Other monetary fund 175,479,435.16 509,812,501.06
Total 3,695,567,815.50 9,792,940,409.40
Other statements
Notes: No funds are deposited abroad at the year-end.
The details of restricted monetary funds
Items Closing balance Balance at the beginning of
Notes
year
Margin for bank acceptance bill 175,479,435.16 155,906,379.33
Guarantee for Yield Enhancement 310,000,000.00
(1)
Products
Total 175,479,435.16 465,906,379.33
Note (1): The Guarantee for Yield Enhancement Products is the deposit to acquire the short-term US dollar loan.
2. Financial assets measured by fair value with changes accounted into current gains
In RMB
Items Closing balance Opening balance
Remarks:
None
3. Derivate financial assets
[] Applicable; [V] Not applicable
4. Notes receivable
1) Notes receivable disclosed by category
In RMB
Items Closing balance Opening balance
Bank acceptance bill 2,793,646,870.49 2,045,638,618.35
Commercial acceptance bill 152,403,936.09 43,400,642.78
Total 2,946,050,806.58 2,089,039,261.13
2) The pledged acceptance bill at the year-end
In RMB
Items Amount on pledge
Bank acceptance bill 703,876,716.62
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Total 703,876,716.62
3) The amount of Notes receivable endorsed over but not yet matured at the year-end.
In RMB
Amount of terminate recognition at year
Items Unrecognized ending balance
end
Bank acceptance bill 4,821,918,283.38
Commercial acceptance bill 42,278,618.98
Total 4,864,196,902.36
4) Notes receivable has been transferred into accounts receivable due to inability of drawer to meet
acceptance bill at the year-end.
In RMB
Items Amount transferred to receivable accounts at year end
Other statements
None
5. Account receivable
(1) Accounts receivable disclosed by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categories Book
Proportio Proportio Book value
Amount Amount Rate value Amount Amount Rate
n n
Accounts receivable
468,839, 138,548, 330,290,8 630,346 142,579,0 487,767,04
tested for impairment 100.00% 29.55% 100.00% 22.62%
559.45 756.55 02.90 ,107.53 65.31 2.22
by portfolio
468,839, 138,548, 330,290,8 630,346 142,579,0 487,767,04
Total 100.00% 29.55% 100.00% 22.62%
559.45 756.55 02.90 ,107.53 65.31 2.22
Receivables of insignificant items but tested for impairment individually
[] Applicable; [V] Not applicable
Account receivables on which bad debt provisions are provided on age basis in the group:
[V] Applicable [] Not applicable
In RMB
Age Closing balance
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Account receivable Bad debt provision Rate
Segments within 1 year
within 1 yr 231,072,672.68
Subtotal of within 1 year 231,072,672.68
1-2 years 72,949,291.30 3,647,464.57 5.00%
2-3 years 37,395,379.36 7,479,075.87 20.00%
Over 3 yrs 127,422,216.11 127,422,216.11 100.00%
Total 468,839,559.45 138,548,756.55 29.55%
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
The portfolio: Age analysis method
Accounts on age basis in the portfolio:
Age Rate for receivables (%) Rate for other receivables (%)
Within 1 yr, (included)
1-2 yrs (included) 5 5
2-3 yrs (included) 20 20
Over 3 yrs 100 100
3、 Receivable accounts with minor amount but bad debt provision provided individually upon
(1) Reason of providing bad debt individually: concrete evidence showing that the account is irretrievable
(2) Basis of providing bad debt provisions:
64
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
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 on which bad debt provisions are provided on percentage analyze basis in a portfolio
[] Applicable; [V] Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the portfolio
None
(2) Receivable accounts written back or retrieved in the report period
Bad debt provision provided this period was RMB0.00.
Bad debt provision written back was RMB4,030,308.76 in the period.
Significant items of retrieving or writing back of bad debt provisions:
In RMB
Name of the companies Amount retrieved or written back way of retrieving
(3) Receivable accounts actually written off in the report period
In RMB
Items Amount written off
Significant amount written off:
In RMB
Name of the Property of the Reason of writing Written off Created by related
Amount written off
companies receivable account off procedures transaction or not
Statement on writing off of receivable accounts.
None
(4) Top 5 debtors in the receivable accounts
Name of the companies Closing balance
Account receivable Proportion in the Bad debt provision
total receivable
account %
Liaoyang Petroleum Tube Co., Ltd. 47,889,868.98 10.21
Huayou Steel Tube Co., Ltd. 29,738,912.85 6.34
Benxi Steel (Group) Industrial Development 21,091,628.72 4.50 26,327.90
Co., Ltd.
Benxi Steel (Group) Machinery Co., Ltd. 19,525,810.80 4.16 406,446.86
65
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Liaoning Hengtong Metallurgy Equipment Co., 16,234,400.77 3.46
Ltd.
Total 134,480,622.12 28.67 432,774.76
(5) Recognition of receivable accounts terminated
None
(6) For securitization on receivable accounts, please provide the amount of asset and liability formed by
continuous involving
None
6. Prepayment
(1) Prepayment presented by ages:
In RMB
Closing balance Opening balance
Age
Amount Proportion Amount Proportion
within 1 yr 1,341,140,984.62 92.49% 1,127,829,597.09 91.23%
1-2 years 61,263,910.04 4.22% 49,267,318.09 3.99%
2-3 years 40,051,507.57 2.76% 47,476,893.75 3.84%
Over 3 yrs 7,647,915.75 0.53% 11,740,195.80 0.94%
Total 1,450,104,317.98 -- 1,236,314,004.73 --
Remarks on the unsettled prepayment due over 1 year:
Mainly prepayment for goods not mature yet according to the agreement.
(2) Top 5 prepayment categorized upon objects
Objects Closing balance Percentage in total prepayment at year end
Benxi Beiying Steel & Iron (Group) Co., 373,358,505.00 25.75
Ltd.
Bengang Group International Trading Ltd. 83,135,289.41 5.73
Tianjin 20th Metallurgy Construction Co., 54,760,432.97 3.78
Ltd.
Liaoning Hengtai Heavy Machine Co., 54,080,819.79 3.73
66
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Ltd.
Zhongye Shanya Heavy Industry 52,696,022.00 3.63
Total 618,031,069.17 42.62
Remarks:
None
7. Interest receivable
(1) Categorized on interests receivable
In RMB
Items Closing balance Opening balance
Fixed deposit 7,011,095.89
Total 7,011,095.89
(2) Material overdue interests
Impairment and basis of
Loans from Closing balance Date of mature Causation of overdue
recognition
Remarks:
None
8. Dividend receivable
(1) Dividend receivable
In RMB
Project (or investee) Closing balance Opening balance
(2) Material dividend receivable overdue for over 1 year
In RMB
Impairment and basis of
Project (or investee) Closing balance Age Cause for not retrieved
recognition
Remarks:
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
9. Other account receivable.
(1) Other receivables disclosed by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categories Book
Proportio Proportio Book value
Amount Amount Rate value Amount Amount Rate
n n
Accounts receivable
286,758, 60,199,0 226,559,6 318,333 62,365,43 255,968,09
tested for impairment 99.40% 20.99% 99.46% 19.59%
750.46 77.28 73.18 ,531.48 3.45 8.03
by portfolio
Other insignificant
items but tested for 1,740,00 1,740,000 1,740,0 1,740,000.0
0.60% 0.54%
impairment 0.00 .00 00.00 0
individually
288,498, 60,199,0 228,299,6 320,073 62,365,43 257,708,09
Total 100.00% 20.87% 100.00% 19.48%
750.46 77.28 73.18 ,531.48 3.45 8.03
Other receivable accounts with large amount and were provided bad debt provisions individually at end of period.
[] Applicable; [V] Not applicable
Other account receivables on which bad debt provisions are provided on age basis in the group:
[V] applicable
In RMB
Closing balance
Age
Other account receivable Bad debt provision Rate
Segments within 1 year
Within 1 yr, (included) 216,100,966.65
Subtotal of within 1 year 216,100,966.65
1-2 years 8,810,213.59 440,510.68 5.00%
2-3 years 4,786,254.52 957,250.90 20.00%
Over 3 yrs 58,801,315.70 58,801,315.70 100.00%
Total 288,498,750.46 60,199,077.28 20.87%
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
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
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、 Other receivables tested by portfolio:
Basis of recognition for portfolios
The portfolio: Receivable account with minor amount and tested individually and not
impaired
Basis of bad debt provision
The portfolio: Age analysis method
Accounts on age basis in the portfolio:
Age Rate for receivables (%) Rate for other receivables (%)
Within 1 yr, (included)
1-2 years (inclusive) 5 5
2-3 years (inclusive) 20 20
Over 3 yrs 100 100
3、 Receivable accounts with minor amount but bad debt provision provided individually upon
(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 in the portfolio on which bad debt provisions were provided on percentage basis
[] Applicable; [V] Not applicable
Other receivable accounts in the portfolio on which bad debt provisions were provided on other basis
[] Applicable; [V] Not applicable
(2) Receivable accounts written back or retrieved in the report period
Bad debt provision provided this period was RMB0.00.
Bad debt provision written back was RMB2,166,356.17 in the period.
Significant items of retrieving or writing back of bad debt provisions:
In RMB
Name of the companies Amount written back or retrieved way of retrieving
None
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
(3) Writing off of other receivable accounts in the period
In RMB
Items Amount written off
Writing off of material other receivable accounts in the period
In RMB
Name of the Reason of writing Written off Created by related
Property of account Amount written off
companies off procedures transaction or not
Statements on writing off of other receivable accounts.
(4) Other receivables disclosed by nature
In RMB
Account property Closing balance of book value Opening balance of book value
Accounts 195,845,537.34 121,294,479.69
Export tax rebate 42,558,816.25 130,825,472.18
Margin and deposit 4,360,260.96 4,598,002.52
Others 8,691,118.70 6,609,889.80
Input tax to be deducted 37,043,017.21 56,745,687.29
Total 288,498,750.46 320,073,531.48
(5) Top five debtors at the year-end
In RMB
Name of the Percentage of total Provision for bad
Nature of account Closing balance Age
companies other receivables debts
Tax bureau Export tax refund 42,558,816.25 within 1 yr 14.75%
Unrecognized input
Tax bureau 37,043,017.21 within 1 yr 12.84%
tax
Shenyang Coke Coal
Current account 15,000,000.00 within 1 yr 5.20%
Co., Ltd. Sales Co.
Liaoning Shenjiao
International Trade Current account 10,000,000.00 within 1 yr 3.47%
Co., Ltd.
Nanjing Dongda
Energy Engineering Current account 10,000,000.00 within 1 yr 3.47%
Institute
Total -- 114,601,833.46 -- 39.72%
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
(6) Receivable accounts involving the government
In RMB
Predicted time and
Name of the companies Title of the projects Closing balance Age at end of period
amount of receiving
None
(7) Other receivable terminated for recognition due to transferring of financial asset
None
(8) Amounts of asset or liability formed by continuous involving
None
Remarks:
None
10. Inventories
(1) Categories of inventory
In RMB
Closing balance Opening balance
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Raw materials 6,175,775,608.68 4,894,918.76 6,170,880,689.92 6,399,017,393.13 4,894,918.76 6,394,122,474.37
Product in
1,356,732,821.07 55,997,892.65 1,300,734,928.42 1,194,892,927.05 44,360,110.69 1,150,532,816.36
process
Products in stock 4,373,781,128.30 91,952,319.78 4,281,828,808.52 3,510,656,117.98 46,897,590.79 3,463,758,527.19
11,906,289,558.0 11,753,444,426.8 11,104,566,438.1 11,008,413,817.9
Total 152,845,131.19 96,152,620.24
5 6 6 2
(2) Inventory impairment provision
In RMB
Increased current period Decreased current period
Items Opening balance Written back or Closing balance
Provided Others Others
off
Raw materials 4,894,918.76 4,894,918.76
Product in
44,360,110.69 11,637,781.96 55,997,892.65
process
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Products in stock 46,897,590.79 45,054,728.99 91,952,319.78
Total 96,152,620.24 56,692,510.95 152,845,131.19
None
(3) Statement on part of the inventory balance which was the capitalized borrowing expenses
None
(4) Particulars about assets completed but not settled at end of period
In RMB
Items Amount
Remarks:
None
11. Asset categorized as hold-for-sale asset
In RMB
Predicted disposal
Items Closing book value fair value Predicted disposal date
expense
Remarks:
None
12. Non-current asset due in 1 year
In RMB
Items Closing balance Opening balance
Remarks:
13. Other current assets
In RMB
Items Closing balance Opening balance
Prepaid income tax 224,568,989.98 226,679,352.76
VAT and input tax to be deducted 282,065,802.58 230,825,156.67
Short-term bank financial products 197,000,000.00
Total 703,634,792.56 457,504,509.43
Remarks:
None
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14. Disposable financial asset
(1) Sellable financial assets
In RMB
Closing balance Opening balance
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Sellable equity
20,271,278.63 20,271,278.63 20,271,278.63 20,271,278.63
instruments:
On cost basis 20,271,278.63 20,271,278.63 20,271,278.63 20,271,278.63
Total 20,271,278.63 20,271,278.63 20,271,278.63 20,271,278.63
(2) Sellable financial assets on fair value at end of period
In RMB
Categories of sellable Available-for-sale equity Debit instruments
Total
financial assets instruments sellable
(3) Sellable financial assets on cost at end of period
In RMB
Book balance Impairment provision Cash
Percentage dividend
Company At At
Increased Decreased At end of Increased Decreased At end of of share in of the
invested in beginning beginning
this period this period term this period this period term the firm % current
of term of term
term
Zhejiang
Bengang
Jingrui 1,967,605. 1,967,605.
20.00%
Steel 63 63
Processing
Ltd.
Suzhou
Bengang 3,888,980. 3,888,980.
20.00%
Industrial 00 00
Co., Ltd.
China
Steel 14,414,693 14,414,693
15.00%
Shanghai .00 .00
Steel
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Processing
Co., Ltd.
20,271,278 20,271,278
Total --
.63 .63
(4) Change of impairment of sellable financial assets in the report period
In RMB
Categories of sellable Available-for-sale equity Debit instruments
Total
financial assets instruments sellable
(5) Statement on sellable equity instruments with fair value decreased significantly or temporarily
decreased but no impairment provision provided
In RMB
Reason of no
Months of Amount of
Sellable equity Fair value at end Decrease of fair impairment
Investment cost continuous impairment
instruments of term value from costs provision
decline provision
provided
Other statements
None
15. Investment held to mature
(1) Investment held to mature
In RMB
Closing balance Opening balance
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
(2) Material investment held to mature
In RMB
Bond items Face value Face interest ratio Actual interest rate Expired on
(3) Investment held to mature relocated in the period
Other statements
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16. Long-term receivables
(1) Long-term receivables
In RMB
Closing balance Opening balance
Items Bad debt Bad debt 折现率区间
Book balance Book value Book balance Book value
provision provision
(2) Long-term receivables unrecognized for transferring of financial assets
(3) Amount of asset or liability formed by transferring of long-term receivables but keep continuous
involving
Other statements
17. Long-term equity investment
In RMB
Changed this period
Dividend or Balance of
Company
Opening Reducing Investment Adjustment Other profit Closing provision
invested Extra Impairment
balance of gains on of other equity announced Others balance at end of
in investment provision
investment equity basis gains change to be period
delivered
I. Joint ventures
II. Affiliates
Other statements
18. Fixed assets
(1) Particulars of fixed assets
In RMB
Houses & Equipment & Transportation
Items Total
buildings machinery equipment
I. Original book value:
1. Opening balance 10,224,039,014.58 33,098,746,490.42 773,132,017.21 44,095,917,522.21
2. Increased this period 52,657,102.58 760,835,550.63 813,492,653.21
(1) Purchase 8,665,299.14 8,665,299.14
(2) Transferred in from construction in
52,657,102.58 752,170,251.49 804,827,354.07
process
(3) Increased by merger
3. Decreased this period 8,196,387.51 259,672,329.44 8,064,271.52 275,932,988.47
(1) Disposed 8,196,387.51 259,672,329.44 8,064,271.52 275,932,988.47
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
4. Closing balance 10,268,499,729.65 33,599,909,711.61 765,067,745.69 44,633,477,186.95
II. Accumulative depreciation
1. Opening balance 4,216,854,550.82 22,179,825,053.53 544,196,523.37 26,940,876,127.72
2. Increased this period 228,146,110.13 680,587,626.73 4,786,803.61 913,520,540.47
(1) Provision 228,146,110.13 680,587,626.73 4,786,803.61 913,520,540.47
3. Decreased this period 6,222,002.26 239,809,006.99 8,042,419.86 254,073,429.11
(1) Disposed 6,222,002.26 239,809,006.99 8,042,419.86 254,073,429.11
4. Closing balance 4,438,778,658.69 22,620,603,673.27 540,940,907.12 27,600,323,239.08
III. Impairment provision
1. Opening balance 8,208,087.85 2,551,052.65 10,759,140.50
2. Increased this period
(1) Provision
3. Decreased this period
(1) Disposed
4. Closing balance 8,208,087.85 2,551,052.65 10,759,140.50
IV. Book value
1. Book value at end of period 5,821,512,983.11 10,976,754,985.69 224,126,838.57 17,022,394,807.37
2. Book value at beginning of period 5,998,976,375.91 10,916,370,384.24 228,935,493.84 17,144,282,253.99
(2) Fixed assets temporarily in idle status
In RMB
Accumulated Impairment
Items Original book value Book value Note
depreciation: provision
(3) Fixed asset by financial leasing
In RMB
Accumulated
Items Original book value Impairment provision Book value
depreciation:
(4) Fixed assets leased out on finance
In RMB
Items Closing book value
Houses & buildings 61,193,223.19
Equipment & machinery 206,729.75
Transportation equipment 521,313.87
Total 61,921,266.81
(5) Fixed assets not granted certificate of property
In RMB
Items Book value Reason for certificate not granted
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Houses & buildings 489,571,568.10 Filed by batches
Other statements
None
19. Construction-in-process
(1) Particulars of construction-in-process
In RMB
Closing balance Opening balance
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Information system project 190,119,871.68 190,119,871.68 183,662,781.72 183,662,781.72
Environmental reconstruction
of converter and the 180t 143,034,986.51 143,034,986.51 581,647,629.27 581,647,629.27
dephosphorization converter
Silicon steel project 8,837,606.85 8,837,606.85
Production line of
electro-galvanized steel plates 1,179,970,803.32 1,179,970,803.32 1,090,509,377.96 1,090,509,377.96
for automobile
Reconstruction of hot-rolling
2,815,733.33 2,815,733.33 279,613,089.64 279,613,089.64
equipment
Cool rolling high strength steel
2,476,509,668.24 2,476,509,668.24 1,925,107,936.24 1,925,107,936.24
rebuilding
hot galvanizing project of No.3
150,890,968.35 150,890,968.35
hot rolling factory
The new energy control center
231,068,522.94 231,068,522.94 218,595,249.81 218,595,249.81
project
Reconstruction project of coke
dry cooling of No.2 Coke 1,199,916,150.47 1,199,916,150.47 1,163,586,592.69 1,163,586,592.69
Workshop
360 M2 sintering machine 754,829,652.44 754,829,652.44 466,556,730.02 466,556,730.02
Softening water supplying
62,631,414.86 62,631,414.86
project
Reconstruction of South Gate
53,470,299.19 53,470,299.19 41,847,818.94 41,847,818.94
of Transportation Dept.
Other small projects 240,745,068.44 240,745,068.44 51,757,711.98 51,757,711.98
Environmental reengineering 32,032,026.31 32,032,026.31 10,635,991.17 10,635,991.17
Upgrading of surface detector
50,023,398.37 50,023,398.37 50,023,398.37 50,023,398.37
of Bengang Puxiang
Bengang Coke Factory dry
19,966,959.08 19,966,959.08
cooling equipment upgrading
Reconstruction of post
processing line of Cool Rolling 49,869,058.13 49,869,058.13
Factory
Reconstruction of No.1 furnace 32,237,843.02 32,237,843.02
Upgrading of controlling
system of 1700 primary rolling
34,700,581.28 34,700,581.28
machine of Continuous Rolling
Factory
Equipment upgrading of Iron
23,629,663.36 23,629,663.36
Making Factory
Furnace upgrading of Iron
25,309,651.47 25,309,651.47
Making Factory
Total 6,899,978,512.78 6,899,978,512.78 6,126,175,722.67 6,126,175,722.67
(2) Material change in construction-in-progress
In RMB
77
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Amount Ratio of Accumulat Including: Capitalizat
Increased
Opening transferred Other Closing accumulati e of interest ion ratio of Fund
Projects Budget current Progress
balance to fixed deduction balance ve input on interest capitalized current recourse
period
asset budget capitalized this term period
Informatio
390,380,00 183,662,78 6,457,089. 190,119,87 30,102,720 5,099,288.
n system 85.00% 90 5.60%
0.00 1.72 96 1.68 .35 21
project
Environme
ntal
reconstruct
ion of
converter 1,778,644, 581,647,62 12,645,123 451,257,76 143,034,98 117,658,44 12,394,204
84.00% 90 5.60%
and the 000.00 9.27 .12 5.88 6.51 1.88 .47
180t
dephospho
rization
converter
Production
line of
electro-gal
1,224,700, 1,090,509, 89,461,425 1,179,970, 161,145,56 18,281,621
vanized 96.00% 95 5.63%
000.00 377.96 .36 803.32 3.06 .45
steel plates
for
automobile
Cool
rolling
high 6,100,000, 1,925,107, 551,401,73 2,476,509, 168,819,71 78,375,421
41.00% 50 5.63%
strength 000.00 936.24 2.00 668.24 4.80 .60
steel
rebuilding
hot
galvanizin
g project 869,180,00 150,890,96 150,890,96
17.00% 20
of No.3 0.00 8.35 8.35
hot rolling
factory
The new
energy
284,100,00 218,595,24 12,473,273 231,068,52 30,173,931 5,907,914.
control 87.00% 90 5.60%
0.00 9.81 .13 2.94 .37 92
center
project
Reconstruc
tion
project of
1,354,132, 1,163,586, 36,329,557 1,199,916, 86,313,352 25,427,149
coke dry 89.00% 90 5.60%
000.00 592.69 .78 150.47 .67 .68
cooling of
No.2 Coke
Workshop
360 M2
1,111,787, 466,556,73 288,272,92 754,829,65 21,718,057 11,255,556
sintering 68.00% 70 5.60%
000.00 0.02 2.42 2.44 .75 .03
machine
Silicon
934,450,00 8,837,606. 8,837,606. 16,197,745
steel 79.00% 95
0.00 85 85 .48
project
Reconstruc
tion of 260,200,00 279,613,08 2,815,733. 279,613,08 2,815,733.
109.00% 90
hot-rolling 0.00 9.64 33 9.64 33
equipment
Softening
water 75,540,000 62,631,414 3,259,480. 65,890,895 2,918,150.
87.00% 100
supplying .00 .86 98 .84 76
project
Reconstruc
tion of
South Gate 55,980,000 41,847,818 11,622,480 53,470,299 2,113,252.
96.00% 95 662,362.07 5.60%
of .00 .94 .25 .19 67
Transporta
tion Dept.
14,439,093 6,013,758, 1,174,467, 796,761,75 6,391,464, 637,160,93 157,403,51
Total -- -- --
,000.00 621.15 393.53 1.36 263.32 0.79 8.43
(3) Impairment provision provided on construction in process
In RMB
Items Provided this period Reason to provide
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Other statements
None
20. Project material
In RMB
Items Closing balance Opening balance
Special equipment 4,677,471.15 90,221,101.46
Total 4,677,471.15 90,221,101.46
Remarks:
Balance of project goods decreased by RMB85,543,630.31 (94.82%) from the opening balance, which was caused by
increasing of delivery of equipment purchased for reconstruction project of high strength steel production.
21. Liquidation of fixed assets
In RMB
Items Closing balance Opening balance
Remarks:
None
22. Intangible assets
(1) Profiles of intangible assets
In RMB
Items Land using right Patent Non-patent technologies Computer software Total
I. Original book value
1. Opening balance 296,245,314.76 141,509.43 296,386,824.19
2. Increased this period
(1) Purchase
(2) Internal R&D
(3) Increased by merger
3. Decreased this period
(1) Disposal
4. Closing balance 296,245,314.76 141,509.43 296,386,824.19
II. Accumulative amortizing
1. Opening balance 24,913,882.78 12,971.66 24,926,854.44
2. Increased this period 2,963,042.76 6,485.83 2,969,528.59
(1) Provision 2,963,042.76 6,485.83 2,969,528.59
3. Decreased this period
(1) Disposal
4. Closing balance 27,876,925.54 19,457.49 27,896,383.03
III. Impairment provision
1. Opening balance
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
2. Increased this period
(1) Provision
3. Decreased this period
(1) Disposal
4. Closing balance
IV. Book value
1. Book value at end of period 268,368,389.22 122,051.94 268,490,441.16
2. Book value at beginning of period 271,331,431.98 128,537.77 271,459,969.75
There isnt any intangible asset constituted by internal R&D in the period.
(2) Property certificate not granted yet:
In RMB
Items Book value Reason for certificate not granted
Remarks:
None
23. Development expenses
In RMB
Opening Closing
Items Increased current period Decreased current period
balance balance
Other statements
24. Goodwill
(1) Original book value of goodwill
In RMB
Name of the
companies or Opening balance Increased this period Decreased this period Closing balance
goodwill item
(2) Impairment provision on goodwill
In RMB
Name of the
companies or Opening balance Increased this period Decreased this period Closing balance
goodwill item
Statement of the testing process, indices, and recognition of impairment provision on goodwill:
Other statements
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
25. Long-term expenses to be amortized
In RMB
Increased current Amortized this Other decreased
Items Opening balance Closing balance
period period amount
Other statements
None
26. Deferred income tax assets/ deferred income tax liabilities
(1) Deferred income tax asset not deducted
In RMB
Closing balance Opening balance
Items Deductible provisional Deferred income tax Deductible provisional Deferred income tax
differences asset differences asset
Asset impairment
362,352,105.52 90,588,026.38 311,856,259.50 77,964,064.88
provision
Internal trade profit not
333,978,859.03 83,494,714.76 333,978,859.03 83,494,714.76
realized
Welfare for retired
5,963,787.24 1,490,946.81 8,513,359.96 2,128,339.99
employee
Employee wages payable 47,262,733.73 11,815,683.43 13,889,056.69 3,472,264.17
Internal profit unrealized 44,414,436.52 11,103,609.13 57,740,326.46 14,435,081.62
Total 793,971,922.04 198,492,980.51 725,977,861.64 181,494,465.42
(2) Deferred income tax liabilities not deducted
In RMB
Closing balance Opening balance
Items Taxable provisional Deferred income tax Taxable provisional Deferred income tax
difference liability difference liability
(3) Deferred income tax asset or liability at net amount after deduction
In RMB
Amount neutralized Closing balance of Amount neutralized Opening balance of
between deferred income deferred income tax asset between deferred income deferred income tax asset
Items
tax asset and liability at or liability after tax asset and liabilities at or liability after
end of period deduction opening of period deduction
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Deferred income tax
198,492,980.51 181,494,465.42
asset
(4) Details of unrecognized deferred income tax asset
In RMB
Items Closing balance Opening balance
Neutralizable losses 446,430,077.99 476,157,419.26
Total 446,430,077.99 476,157,419.26
(5) Deductible losses of unrecognized deferred income tax asset due in next period
In RMB
Year Amount at end of term Initial amount Note
2014
2015
2016 796,317.70
2017 376,252,065.90 405,183,089.47
2018 70,178,012.09 70,178,012.09
2019
Total 446,430,077.99 476,157,419.26 --
Remarks:
None
27. Other non-current assets
In RMB
Items Closing balance Opening balance
Remarks:
28. Short-term loans
(1) Categories of short-term loans
In RMB
Items Closing balance Opening balance
Guarantee loan 9,966,326,352.65 10,609,754,000.00
Credit loan 5,193,567,325.05 7,578,191,675.93
Total 15,159,893,677.70 18,187,945,675.93
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Statement on categories of short-term loans.
None
(2) Short-term loans expired but not repaid
Short-term loans expired but not repaid was RMB0.00 at end of period, including material amounts as following:
In RMB
Loans from Closing balance Interest rate Date of mature Overdue interest
Remarks:
None
29. Financial liabilities on fair value with changes accounted into current income account
In RMB
Items Closing balance Opening balance
Remarks:
30. Derivate financial liabilities
[] Applicable; [V] Not applicable
31. Notes payable
In RMB
Categories Closing balance Opening balance
Bank acceptance 974,828,982.41 822,581,591.46
Total 974,828,982.41 822,581,591.46
Notes payable mature as of end of period was RMB0.00.
32. Account payable
(1) Payables
In RMB
Items Closing balance Opening balance
Trade payable 5,666,958,348.69 7,845,961,373.04
Labour service 12,840,218.65 24,340,661.56
Project and equipment accounts payable 398,184,000.93 501,029,342.01
Maintaining 373,752,563.77 407,080,221.51
Others 3,155,523.18 2,537,206.06
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Total 6,454,890,655.22 8,780,948,804.18
(2) Material payable aged over 1 year
In RMB
Items Closing balance Reason of not paid or transferred
Jixi Huasheng Fengyuan Coal Selection
71,275,916.07 Not cleared yet
Co., Ltd.
Zhongye Saidi Engineering Co., Ltd. 26,051,107.11 Not cleared yet
Hangzhou Tianshen Materials Co., Ltd. 21,330,633.40 Not cleared yet
Zhongye Jingcheng Engineering &
15,062,985.68 Not cleared yet
Technologies Ltd.
Benxi Steel New Business Development
10,083,078.60 Not cleared yet
Co., Ltd.
Qitaihe Tenglong Coal Trade Co., Ltd. 8,365,395.33 Not cleared yet
Total 152,169,116.19 --
Remarks:
Closing balance of payable accounts includes RMB400,000,000.00 of account payable to Benxi Steel & Iron Group Mining Co., Ltd.
for Letter of Credit not mature.
33. Account received in advance
(1) Advances received
In RMB
Items Closing balance Opening balance
Trade collected in advance 3,162,322,037.70 3,144,418,091.52
Total 3,162,322,037.70 3,144,418,091.52
(2) Material advances received for over 1 year
In RMB
Items Closing balance 未偿还或结转的原因
(3) Projects settled but not completed under construction contracts
In RMB
Items Amount
Remarks:
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
None
34. Wage payable
(1) Wage payable
In RMB
Items Opening balance Increased this period Decreased this period Closing balance
I. Short-term wages 26,870,591.59 815,435,619.26 789,937,358.29 52,368,852.56
II. Post-job welfare –
135,898,826.37 135,898,826.37
provision plan
III. Dismissing
8,513,359.96 2,549,572.72 5,963,787.24
compensation
Total 35,383,951.55 951,334,445.63 928,385,757.38 58,332,639.80
(2) Short-term wages
In RMB
Items Opening balance Increased this period Decreased this period Closing balance
(1) Salary, bonus,
16,980,558.52 656,702,672.10 630,982,657.83 42,700,572.79
allowance and subsidy
(2) Employee welfare 13,769,989.18 13,769,989.18
(3) Social Insurance 666,677.44 60,737,764.21 60,739,150.42 665,291.23
Including: Medical
45,370,323.60 45,370,323.60
insurance
Work injury
666,677.44 15,365,249.48 15,366,635.69 665,291.23
insurance
Maternity
2,191.13 2,191.13
insurance
(4) Housing 6,853,473.00 61,287,207.20 61,291,847.20 6,848,833.00
(5) Union funds and staff
2,367,273.37 22,522,872.57 22,738,210.41 2,151,935.53
education fee
Others 2,609.26 415,114.00 415,503.25 2,220.01
Total 26,870,591.59 815,435,619.26 789,937,358.29 52,368,852.56
(3) Defined contribution plans
In RMB
Items Opening balance Increased this period Decreased this period Closing balance
Basic pension fund 129,565,769.57 129,565,769.57
Unemployment insurance 6,333,056.80 6,333,056.80
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Total 135,898,826.37 135,898,826.37
Remarks:
None
35. Tax payable
In RMB
Items Closing balance Opening balance
VAT 5,408,115.42 9,556,213.59
Operational tax 1,240.00 246,231.69
Enterprise income tax 10,430,638.62 12,951,594.58
City maintenance and construction tax 673,872.15 302,020.62
Property tax 1,576,161.92 7,953,883.39
Education surtax 294,125.98 246,528.48
Others 990,916.72 1,066,709.41
Total 19,375,070.81 32,323,181.76
Remarks:
36. Interest payable
In RMB
Items Closing balance Opening balance
Long-term loan interest with installments 5,080,000.00
Short-term borrowing interests payable 3,452,945.79 21,855,067.99
Interest of corporation bond 32,312,500.00
Total 35,765,445.79 26,935,067.99
Material overdue interest payments:
In RMB
Loans from Amount overdue Causation of overdue
Remarks:
None
37. Dividend payable
In RMB
Items Closing balance Opening balance
Common share dividend 156,800,000.00
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Total 156,800,000.00
Causations must be addressed in case there is any material dividend payable overdue for over 1 year.
None
38. Other account payable.
(1) Other payables disclosed by nature
In RMB
Items Closing balance Opening balance
Deposit 4,336,244.85 3,698,444.41
Deposit 117,927,677.78 121,211,291.67
Current account 233,393,924.44 295,686,710.10
Others 55,991,355.18 48,719,569.65
L/C
Total 411,649,202.25 469,316,015.83
(2) Significant other payables ageing over one year
In RMB
Items Closing balance 未偿还或结转的原因
Benxi Steel (Group) Ltd. 103,313,915.01 Not cleared yet
Guangzhou Benjin Electronic &
13,088,825.00 Not cleared yet
Machinery Equipment Co., Ltd.
Total 116,402,740.01 --
Other statements
None
39. Liabilities categorized as hold-for-sale
In RMB
Items Closing balance Opening balance
Remarks:
None
40. Non-current liabilities due in one year
In RMB
Items Closing balance Opening balance
87
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Long-term loans due in 1 year 1,026,860,000.00 591,740,000.00
Total 1,026,860,000.00 591,740,000.00
Remarks:
None
41. Other current liability
In RMB
Items Closing balance Opening balance
Change of short-erm bond payable:
In RMB
Amortizin
Issued Interest g of Repaid
Face Date of Bond Issuing Opening Closing
Bond this drawn on premium this
value issue term amount balance balance
period face value or period
discount
Remarks:
None
42. Long-term loans
(1) Categories of long-term loans
In RMB
Items Closing balance Opening balance
Guarantee loan 285,000,000.00 642,377,465.85
Credit loan 24,402,481.85 172,250,000.00
Total 309,402,481.85 814,627,465.85
Statement on categories of long-term loans:
None
Other statements, including interest scales:
None
43. Bond payable
(1) Bond payable
In RMB
Items Closing balance Opening balance
Bond payable 1,500,000,000.00
88
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Total 1,500,000,000.00
(2) Change of bond payable (exclude other financial instruments such as preference shares or perpetual
liabilities)
In RMB
15 Bengang 01 100.00 Feb 5 2015 3 yrs 1,500,000,000.00 1,500,000,000.00 1,500,000,000.00 32,312,500.00 1,500,000,000.00
(3) Statement on conditions and date of corporation bond converting to shares
None
(4) Statement on other financial instruments categorized as financial liabilities
Particulars about other financial instruments issued externally such as preference shares or perpetual bonds.
None
Change of financial instruments issued externally such as preference shares or perpetual bonds
In RMB
Financial At beginning of term Increased this period Decreased this period At end of term
instruments
issued Amount Book value Amount Book value Amount Book value Amount Book value
externally
Statements on basis of categorizing of other financial instruments as financial liabilities.
None
Other statements
None
44. Long term payables
(1) Long-term payable by natures
In RMB
Items Closing balance Opening balance
Remarks:
45. Long-term wage payable
(1) Long-term wage payable
In RMB
Items Closing balance Opening balance
89
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(2) Change of defined beneficial plan
Current value of defined beneficial plan:
In RMB
Items Occurred current term Occurred in previous term
Planned asset:
In RMB
Items Occurred current term Occurred in previous term
Net liability (asset) of defined beneficial plan
In RMB
Items Occurred current term Occurred in previous term
Statement on content, risks, influence on future cash flow, time and uncertainty of the beneficial plan:
Statement on fine calculation and sensitivity of the beneficial plan:
Remarks:
46. Special payables
In RMB
Decreased this
Items Opening balance Increased this period Closing balance Cause
period
Remarks:
47. Anticipated liabilities
In RMB
Items Closing balance Opening balance Cause
Statement on material assumptions and estimations on the material anticipated liabilities:
48. Deferred income
In RMB
Decreased this
Items Opening balance Increased this period Closing balance Cause
period
Government subsidy 427,524,000.00 19,500,000.00 31,328,000.00 415,696,000.00
Total 427,524,000.00 19,500,000.00 31,328,000.00 415,696,000.00 --
Government subsidy items involved:
In RMB
Amount transferred
Opening New subsidy in Other Closing Asset-related or
Liability projects to non-operational
balance current period changes balance income-related
income
Desulfuration project of 1,600,000.00 400,000.00 1,200,000.00 Asset-related
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
220t/h furnace
MES project fund 8,600,000.00 860,000.00 7,740,000.00 Asset-related
Environment treatment
1,080,000.00 270,000.00 810,000.00 Asset-related
project of Benxi City
Second batch of Funding for
National Cleaned
2,400,000.00 400,000.00 2,000,000.00 Asset-related
Manufacture Demonstration
Project
Subsidiary for industrial
energy control center 11,600,000.00 11,600,000.00 Asset-related
demonstration project
Environment Pollution
22,942,000.00 2,617,000.00 20,325,000.00 Asset-related
Renovation Project
Environment Renovation
Project and Regional Basin
2,180,000.00 240,000.00 1,940,000.00 Asset-related
Environment Protection
Project
Energy-saving Technological
Transformation Fiscal 8,862,000.00 1,477,000.00 7,385,000.00 Asset-related
Reward Project
Cool rolling high strength
250,000,000.00 250,000,000.00 Asset-related
steel rebuilding
desulfuration project of
2*265 square meter burnning 2,000,000.00 500,000.00 1,500,000.00 Asset-related
line
Water treatment project of
2*265 square meter burnning 6,760,000.00 1,690,000.00 5,070,000.00 Asset-related
line
Reconstruction of dust
remover of the 360m3 120,000.00 30,000.00 90,000.00 Asset-related
burnning line
Automobile High-class
Electrolytic Zinc Steel Plate 41,040,000.00 41,040,000.00 Asset-related
Production Line Project
Heat recycling and
disulfuration project of the 21,020,000.00 2,102,000.00 18,918,000.00 Asset-related
burnning line
Water treatment factory
4,500,000.00 750,000.00 3,750,000.00 Asset-related
reconstruction project
Fund for introducing of
4,000,000.00 4,000,000.00 Income related
overseas R&D team
Disulfuration project of the 7
24,000,000.00 24,000,000.00 Asset-related
boilers of the Power Plant
Waste liquid processing
400,000.00 50,000.00 350,000.00 Asset-related
project of Coke Factory
Special fund for importing of
14,420,000.00 442,000.00 13,978,000.00 Asset-related
overseas technologies
Eliminating of out-of-date
19,500,000.00 19,500,000.00 Income related
production award
Total 427,524,000.00 19,500,000.00 31,328,000.00 415,696,000.00 --
Remarks:
1. 220t/h Boiler Desulfurization: According to “Notice about the first batch of Provincial Environmental Protection Special
Funding Project of 2006” (Liao Huan Fa 2006 No. 65) and “Notice about the first batch of Provincial Environmental Protection
Special Funding Project of 2008” (Liao Huan Fa 2008 No. 29) issued by Department of Environmental Protection of Liaoning
Province and Liaoning Provincial Finance Department, RMB 4 million was received for this project. The project was completed
in December 2011 and the funding was to be amortized in the next 5 years from 2012.
2. MES Project Special Fund: According to “Notice about National Budget Investment Plan of 2010 of Key Industry
Development and Technology Innovation (3rd batch) and Industrial SMEs Technology Innovation of Benxi” (Ben Fa Gai Fa
2010 No. 285) issued by Benxi Development and Reform Commission, Benxi Economy and Informatization Commission and
Benxi SME Bureau, RMB 8.6 million was received for this project. The project was completed in December 2014 and the
funding was to be amortized in the next 5 years from 2015.
3. Municipal Environmental Pollution Renovation Project: According to “Notice about Benxi Environmental Pollution
91
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Renovation Project of 2011” (Ben Huan Fa 2011 No. 53) issued by Bureau of Environmental Protection of Benxi and Bureau
of Finance of Benxi, RMB 2.7 million was received and used for the reform of 265 square meters sinter machine tail ESP and the
reform of three car tipplers dumpers with new spray and dust catcher facilities in raw material plant 2. The project was
completed and the funding was to be amortized in the next 5 years from 2012.
4. Second batch of Funding for National Cleaned Manufacturing Demonstration Project: According to “Notice about the second
batch of Funding for National Cleaned Manufacturing Demonstration of 2013” (Cai Jian 2013 No. 681) issued by Ministry of
Finance of PRC, RMB 4 million was received and used for the reform of the phenol cyanide sewage treatment system in coking
plant. The project was completed in 2013 and the funding was to be amortized in the next 5 years from 2013.
5. Industrial Enterprise Energy Management Center Construction Demonstration Project: According to “Notice about
Appropriation of Governmental Subsidy of Industrial Enterprise Energy Management Center Construction Demonstration
Project of 2009” (Liao Cai Zhi Qi 2009 No. 868) issued by Liaoning Provincial Finance Department, RMB 11.6 million was
received for this project for the construction of new energy controlling center. The project is under implementation.
6. Environment Pollution Renovation Project: According to “Notice about Appropriation of Funding Plan of Benxi Environment
Pollution Renovation Project” (Ben Huan Fa 2012 No. 78) issued by Bureau of Environmental Protection of Benxi, RMB 12.07
million was received and used for the reform of environmental protection facilities in coking plant and iron making plant. The
project was completed in 2013 and the funding is amortized in the next 5 years from 2013.
In 2014, according to “Notice about the first batch of Benxi Environmental Protection Special Funding Project of 2013” (Ben
Huan Fa 2013 No. 85) issued by Bureau of Environmental Protection of Benxi, another RMB 14.10 million was received and
used for the one 360 Square meter mesintering machine desulfurization project in iron works. The project was completed in
2014 and the funding was to be amortized in the next 5 years from 2015.
7. Environment Renovation Project and Regional Basin Environment Protection Project: According to “Notice about the second
batch of Funding Plan of Benxi Environment Renovation Project and Regional Basin Environment Protection Project” (Ben
Huan Fa 2012 No. 81) issued by Bureau of Environmental Protection of Benxi, RMB 2 million was received. Among the
received funding, 1.7 million was used for one 265 Square meter mesintering machine desulfurization project. This project was
completed in 2014 and the funding was to be amortized in the next 5 years. The other 0.3 million was used for the renovation of
batching and dust eliminating of the second sintering plant of iron making plant. This project was completed in 2013 and the
funding was to be amortized in the next 5 years.
In 2014, according to “Notice about the Funding Plan of The Blue Sky Project 0f 2013” (Ben Cai Fa 2014 No. 52), RMB 0.4
million was received and used for the renovation of dust elimination project of the iron making plant. The project was completed
in 2013 and the funding was to be amortized in the next years.
8. Energy-saving Technological Reform Fiscal Reward Project: According to “Notice about the first batch of Implementation
Plan of Energy-saving Technological Reform Fiscal Reward Project” (Fa Gai Huan Zi 2009 No. 2483) issued by National
Development and Reform Commission, RMB 14.77 million was received and used for the Boiler Reform Project of CCPP in
power plant. The project was completed in 2013 and the funding was to be amortized in the next 5 years from 2013.
9. High Strength Cool-rolling Renovation Project: According to “Notice about Appropriation of Enterprise Technology Reform
Loan Fiscal Subsidy of 2012” (Liao Cai Zhi Qi 2012 No. 715) issued by Liaoning Provincial Finance Department, RMB 50
million was first received. Then in 2013 another RMB 50 million was received according to “Notice about Appropriation of the
forth Fiscal Subsidy Plan for Enterprise Technology Reform” (Liao Jing Xin Tou Zi 2013 No. 241) issued by Liaoning
Provincial Economy and Informatization Commission and Liaoning Provincial Finance Department, and RMB 100 million was
received according to “Notice about National Budget Investment Project Subsidy for Technology Reform of 2012” (Fa Gai Ban
Chan Ye 2012 No. 1642) issued by Office of National Development and Reform Commission and Office of Ministry of
Industry and Details Technology of PRC in current period. In 2014, 50 million was received according to the “Notice about
Appropriation of the second batch of Discount Interest Funds for the Loans for Enterprise Technical Reformation of 2014” (Liao
Cai Zhi Qi 2014 No. 289) issued by Liaoning Provincial Finance Department. The project is expected to be completed in 2016.
10. 2*265 Square Meter Sintering Machine Desulfurization Project: According to “Notice about the second batch of Budget of
Environmental Protection Special Funding Project of 2009 in Liaoning Province” (Liao Cai Zhi Jing 2009 No. 1076) issued by
Liaoning Provincial Finance Department, RMB 5 million was received for this project. The project was completed in December
2011 and the funding was to be amortized in the next 5 years from 2012.
In 2014, according to “Notice about the Funding Plan of The Blue Sky Project 0f 2013” (Ben Cai Fa 2014 No. 52), another
RMB 0.6 million was received and the fund was transferred into profit and loss of current period.
11. 2*265 Square Meter Sintering Machine Polluted Water Project: According to “Notice about Budget of National Pollution
Discharge Special Funding Project of 2009” (Liao Cai Zhi Jing 2009 No. 1153) issued by Liaoning Provincial Finance
Department, RMB 16.90 million was received for this project. The project was completed in December 2011 and the funding
was to be amortized in the next 5 years from 2012.
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
12. Automobile High-class Electrolytic Zinc Steel Plate Production Line Project : According to “Notice about Key Industry
Revitalization and First Technology Reform Project Construction Expansion and National Debt Investment Budget” issued by
Liaoning Provincial Development and Reform Commission, RMB 41.04 million was received for this project. The project is
under implementation.
13. Sintering Machine Residue Heat Usage and Desulfurization Project: According to “Notice about the third batch of National
Budget of Investment Plan for Key Industrial and Technology Reform Project of 2011” (Liao Fa Gai Tou Zi 2011 No. 1319)
issued by Liaoning Provincial Development and Reform Commission, a total amount of RMB 21.02 was to be appropriated.
First RMB 17.86 million was received for this project in 2012. In 2014, another RMB3.16 million was received. The project
was completed in 2014 and the funding was to be amortized in the next 5 years from 2015.
14. Polluted Water Treatment Project: According to “Notice about the third batch of National Funding for Environmental
Pollution Renovation Project of Liaohe Basin” (Liao Cai Zhi Jing 2010 No. 1072) issued by Liaoning Provincial Finance
Department, RMB 7.5 million was received for this project. The project was completed in December 2013 and the funding was
to be amortized in the next 5 years from 2013.
15. Overseas R&D Team Introduction Fund:
1) According to “Notice about Appropriation for Overseas R&D Team Introduction Funding Supported by The Government
of 2008” (Liao Wai Zhuan 2008 No. 71) issued by Liaoning Provincial Administration of Foreign Experts Affairs, RMB 1
million was received for overseas R&D team introduction of cold-rolling grain-oriented silicon steel project. This project
has not started yet.
2) According to “Notice about Appropriation for the second batch of Overseas R&D Team Introduction Funding Supported
by The Government of 2010” (Liao Wai Zhuan 2010 No. 71) issued by Liaoning Provincial Administration of Foreign
Experts Affairs, RMB 1 million was received for overseas R&D team introduction of high-grade cold-rolling plate used in
automobile. The project was completed in 2014 and the fund was transferred into profit and loss of current period.
3) According to “Notice about Appropriation for the third and fourth batch of Overseas R&D Team Introduction Funding
Supported by The Government of 2010” (Liao Wai Zhuan 2011 No. 5) issued by Liaoning Provincial Administration of
Foreign Experts Affairs, RMB 0.5 million was received for overseas R&D team introduction of hot-rolling pipe with
thickness and high grade. The project was completed in 2014 and the fund was transferred into profit and loss of current
period.
4) According to “Notice about Project of Overseas R&D Team Introduction in Liaoning Province” (Liao Wai Zhuan Han
2013 No. 46) issued by Liaoning Provincial Administration of Foreign Experts Affairs, RMB 0.5 million was received for
overseas R&D team introduction of the manufacture technology of 300 series stainless steel cold-rolling. This project has
not started yet.
5) According to “Notice about Project of Overseas R&D Team Introduction in Liaoning Province” (Liao Wai Zhuan Han
2013 No. 47) issued by Liaoning Provincial Administration of Foreign Experts Affairs, RMB 0.5 million was received for
overseas R&D team introduction of the reform of the cooling equipment used in 2300 series hot-rolling line. This project
has not started yet.
6) According to “Notice about Project of Overseas R&D Team Introduction in Liaoning Province” (Liao Wai Zhuan Han
2012 No. 48) issued by Liaoning Provincial Administration of Foreign Experts Affairs, RMB 0.5 million was received for
overseas R&D team introduction of the manufacture technology of cold-rolling steel with high strength used in automobile.
This project has not started yet.
7) According to “Notes about Project of Overseas R&D Team Introduction in Liaoning Province” (Liao Wai Zhuan Han
2012 No. 47) issued by Liaoning Provincial Administration of Foreign Experts Affairs, RMB 0.5 million was received for
overseas R&D team introduction of the manufacture technology of electro-galvanizing plate used in automobile. This
project has not started yet.
8) According to “Notes about Project of Overseas R&D Team Introduction in Liaoning Province” (Liao Wai Zhuan Han
2013 No. 137) issued by Liaoning Provincial Administration of Foreign Experts Affairs, RMB 0.5 million was received
for the production of automobile cold rolled dual phase steels. This project is now under implementation.
9) According to “Notes about Approval for Selltement of 53 Overseas R&D Team Introduction Projects” (Liao Ren She
2014 No. 271) issued by Liaoning Provincial Administration of Foreign Experts Affairs, RMB 0.5 million was received
for the research and development of high grade automobile cold rolling steel plates. This project was completed in 2014 and
the fund was transferred into profit and loss of current period all at once.
10) According to “Notes about Project of Overseas R&D Team Introduction in Liaoning Province” (Liao Wai Zhuan Han
2014 No. 54) issued by Liaoning Provincial Administration of Foreign Experts Affairs, RMB 0.5 million was received the
production of hot dip galvanized sheet of high surface quality for automobile . This project is now under implementation.
16. 7 Boilers Flue Gas Desulfurization Renovation Project: According to “Notice about the Budget Index of the second batch
of Provincial Environmental Protection Special Funding Project of 2014” (Liao Cai Zhi Jing 2014 No. 338) issued by RMB
2.4 million was received. The Company implemented the flue gas desulfurization renovation of three 240t/h boilers, two
coal-fired high pressure boilers and one gas fired high pressure boiler. The project is under implementation.
17. Management and Salt Extracting of Desulfurization Waste Project: According to “Notice about the first batch of Benxi
93
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Environmental Protection Special Funding Project of 2013” (Ben Huan Fa 2013 No. 85) issued by Bureau of Environmental
Protection of Benxi, RMB 0.5 million was received. The project was completed in December 2013, and the funding was to be
amortized in the next 5 years from 2014.
18. Overseas Advanced Technology Introduction Funding:
1) According to “Note about the Appropriation of the Provincial Special Funding for Introduction of Overseas Advanced
Technology of 2013” (Liao Cai Zhi Qi 2013 No. 1084) issued by Liaoning Provincial Finance Department, RMB 10
million was received and used for the production technology progress of high-grade electro galvanized sheet. The
negotiation with foreign companies is undergoing.
2) According to “Note about the Appropriation of the Provincial Special Funding for Introduction of Overseas Advanced
Technology of 2013” (Liao Cai Zhi Qi 2013 No. 1084) issued by Liaoning Provincial Finance Department, RMB 4.42 million
was received and used for the technology progress of 1700MM unit. The project was completed in December 2014 and the
funding was to be amortized in the next 5 years from 2015.
19. Award for eliminating of out-of-date production: According to the Notice from the Central Government on Awarding
Energy-saving Projects 2014, the Company has received RMB19.50 million from Liaoning Provincial Government.
Deconstruction project has been completed and transferred to current income account.
49. Other non-current liabilities
In RMB
Items Closing balance Opening balance
Remarks:
50. Capital Share
In RMB Yuan
Changed this period (+,-)
Opening Closing
Issuing of new Transferred
balance Bonus shares Others Sub-total balance
shares from reserves
Total of capital 3,136,000,000. 3,136,000,000.
shares 00 00
Remarks:
None
51. Other equity instruments
(1) Profiles of other financial instruments issued externally such as preference shares or perpetual bond at
end of period
(2) Change of financial instruments issued externally such as preference shares or perpetual bond at end of
period
In RMB
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Financial At beginning of term Increased this period Decreased this period At end of term
instruments
issued Amount Book value Amount Book value Amount Book value Amount Book value
externally
Statement on change of other equity instruments and accounting treatment:
Remarks:
52. Capital reserves
In RMB
Items Opening balance Increased this period Decreased this period Closing balance
Capital premium (share
8,998,928,073.23 8,998,928,073.23
capital premium)
Other capital reserves 115,917,468.82 115,917,468.82
Total 9,114,845,542.05 9,114,845,542.05
Other remarks: Statement on change and reasons of the period.
None
53. Shares in stock
In RMB
Items Opening balance Increased this period Decreased this period Closing balance
Other remarks: Statement on change and reasons of the period.
54. Other miscellaneous income
In RMB
Occurred current term
Less:
Amount
accounted as
occurred Attributable Attributable
Opening other gains Less: Closing
Items before to the to minority
balance previously but Income tax balance
income tax parent co. shareholder
transferred to expenses
of the after tax s after tax
gain/loss this
period
period
Other remarks: Adjustment of initial recognized amount of the effective part of cash flow hedging transferred to the hedged items:
55. Special reserves
In RMB
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Items Opening balance Increased this period Decreased this period Closing balance
Safety expenses 430,777.94 17,493,564.59 6,655,498.15 11,268,844.38
Total 430,777.94 17,493,564.59 6,655,498.15 11,268,844.38
Other remarks: Statement on change and reasons of the period.
Safety expenses are provided according to the document 财企[2012]16号.
56. Surplus reserves
In RMB
Items Opening balance Increased this period Decreased this period Closing balance
Statutory surplus
961,105,529.85 961,105,529.85
reserves
Total 961,105,529.85 961,105,529.85
Remarks on surplus reserves: Statement on change and reasons of the period.
57. Retained profit
In RMB
Items Current term Previous term
Adjustment on retained profit at end of previous
2,172,180,473.24 2,100,587,079.16
term
Retained profit at beginning of term after
2,172,180,473.24 2,100,587,079.16
adjustment
Plus: Net profit attributable to owners of the
128,007,136.26 173,894,309.64
parent company
Common share dividend payable 156,800,000.00 156,800,000.00
Retained profit at the end of term 2,143,387,609.50 2,117,681,388.80
Breakdown of adjustment on opening balance of retained profit:
1) Influence of application of new articles of Enterprise Accounting Standard was RMB0.00 on the opening balance of retained
profit.
2) Change of accounting policies by RMB0.00.
3) Correction of material accounting error by RMB0.00.
4) Change of consolidation range under same control by RMB0.00.
5) Other adjustment by RMB0.00.
58. Operation income and operation cost
In RMB
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Occurred current term Occurred in previous term
Items
Revenue Cost Revenue Cost
Major business 15,440,544,823.29 14,122,473,154.22 18,712,609,372.61 17,181,683,180.74
Other business 904,370,337.89 779,076,196.35 1,100,066,909.20 957,442,899.98
Total 16,344,915,161.18 14,901,549,350.57 19,812,676,281.81 18,139,126,080.72
59. Business tax and surcharge
In RMB
Items Occurred current term Occurred in previous term
Operational tax 16,669.64 60,167.57
City maintenance and construction tax 18,014,215.00 37,675,170.42
Education surtax 13,079,642.69 27,358,527.49
Total 31,110,527.33 65,093,865.48
Remarks:
60. Sales expenses
In RMB
Items Occurred current term Occurred in previous term
Outsourced transportation 328,006,061.57 200,717,734.34
Port fee 87,479,749.54 79,511,461.24
Import & export agency fee 24,745,056.29 30,793,751.74
Packaging 4,584,561.83 28,225,787.71
Wage and remuneration 10,973,035.26 12,136,222.13
Others 22,560,814.65 21,120,459.99
Total 478,349,279.14 372,505,417.15
Remarks:
Increasing of sales expenses was RMB105,843,861.99, 28.41% over the previous period, which was caused by increasing of external
railroad transportation and port fees.
61. Administrative expenses
In RMB
Items Occurred current term Occurred in previous term
Wage and remuneration 77,177,155.64 110,234,653.79
Maintaining 104,720,803.04 121,066,431.88
Taxes 42,079,539.74 43,378,362.70
Land using rights 28,713,000.00 28,713,000.00
Depreciation 14,204,850.77 30,914,431.25
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Social insurance 21,520,775.83 26,490,632.56
Sewage expense 9,425,948.00 13,706,701.00
Water resource fee 60,000.00
Housing fund 5,591,290.00 5,852,308.20
Heating 2,453,593.71 4,342,101.86
Business reception expenses 2,310,495.63 2,634,137.25
Amortizing of intangible assets 2,969,528.59 1,316,459.95
Transportation 958,865.94 645,787.83
Rental 1,034,911.12 180,950,181.25
Others 64,430,289.44 52,251,257.85
Total 377,591,047.45 622,556,447.37
Remarks:
Administration expenses decreased by RMB244,965,399.92 (39.35%) from the previous period, which was caused by transferring
of rental of 2300 hot rolling line to cost.
62. Financial expenses
In RMB
Items Occurred current term Occurred in previous term
Interest expense 429,696,201.70 335,252,814.41
Less: Incoming interests 22,675,836.00 10,576,749.48
Exchange gains/losses -36,987,636.90 66,754,808.48
Others 21,366,898.57 20,587,512.87
Total 391,399,627.37 412,018,386.28
Remarks:
Financial expenses decreased by RMB20,618,758.91 (5%) from the previous period, which was caused by decrease of exchange
gains in the period.
63. Asset impairment loss
In RMB
Items Occurred current term Occurred in previous term
I. Bad debt loss -6,196,664.93
II. Inventory impairment loss 56,692,510.95 25,493,258.89
Total 50,495,846.02 25,493,258.89
Remarks:
64. Income from fair value fluctuation
In RMB
Source of income from fluctuation of fair Occurred current term Occurred in previous term
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
value
Remarks:
65. Investment income
In RMB
Items Occurred current term Occurred in previous term
Gains from short-term bank financial
6,584,315.11 13,555,224.57
instruments
Total 6,584,315.11 13,555,224.57
Remarks:
66. 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
2,927,761.15 3,039,885.23 2,927,761.15
non-current assets
Incl. Gains from disposal of
2,927,761.15 3,039,885.23 2,927,761.15
fixed assets
Gains from debt reorganization 6,439,698.87 3,650,253.76 6,439,698.87
Government subsidy 31,328,000.00 1,159,998.00 31,328,000.00
Others 1,527,544.44 2,326,883.39 1,527,544.44
Total 42,223,004.46 10,177,020.38
Government subsidies accounted to current income account:
In RMB
Subsidy titles Amount of the current period Amount of the previous period Asset-related or income-related
Transferred from deferred
11,828,000.00 59,998.00 Income related
income
Enterprise allowances 19,500,000.00 50,000.00 Income related
Government supporting fund
Tax refund 1,050,000.00 Income related
Total 31,328,000.00 1,159,998.00 --
Remarks:
None
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67. Non-operational expenditures
In RMB
Carried to current contingent
Items Occurred current term Occurred in previous term
gain/loss
Total of loss from disposal of
20,661,325.20 3,912.18 20,661,325.20
non-current assets
Incl. Loss from disposal of
20,661,325.20 3,912.18 20,661,325.20
fixed assets
Total 20,661,325.20 3,912.18
Remarks:
68. Income tax expenses
(1) Income tax
In RMB
Items Occurred current term Occurred in previous term
Income tax of current term 14,579,310.17 15,883,711.28
Deferred income tax -16,998,515.09 -5,442,045.37
Total -2,419,204.92 10,441,665.91
(2) Adjustment process of accounting profit and income tax expenses
In RMB
Items Occurred current term
Total profit 142,565,477.67
Income tax expenses calculated on legal / applicable tax rate 14,579,310.17
Impact of deductible temporary difference of un-recognized
-16,998,515.09
deferred income tax asset of current period
Income tax expenses -2,419,204.92
Other statements
69. Other miscellaneous income
See the Notes for details.
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70. Items of cash flow statement
(1) Other cash inflow related to operation
In RMB
Items Occurred current term Occurred in previous term
Incl. Trade and payment on behalf received 25,782,371.73 60,712,702.06
Interest income 22,675,836.00 10,576,749.48
Special fund received 13,910,000.00
Non-operational income 19,500,000.00 1,159,998.00
Others 557,892.02 437,593.26
Total 68,516,099.75 86,797,042.80
Remarks on other cash received relating to business operation:
(2) Other cash paid related to operation
In RMB
Items Occurred current term Occurred in previous term
Incl. Trade account and paid on behalf 457,240,106.06 486,437,012.32
Administrative expense 43,412,221.91 47,317,732.96
Sales expense 4,514,247.62 5,252,661.52
Commission expenses 21,366,898.57 20,587,512.87
Others 2,499,673.65 1,790,071.43
Total 529,033,147.81 561,384,991.10
Remarks on other operation-related payment:
(3) Other cash received related to investment
In RMB
Items Occurred current term Occurred in previous term
收到的其他与投资活动有关的现金说明：
(4) Other cash paid related to investment
In RMB
Items Occurred current term Occurred in previous term
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Remarks on other cash paid related to investment.
(5) Other cash received related to financing
In RMB
Items Occurred current term Occurred in previous term
Remarks on other cash received related to financing:
(6) Other cash paid related to financing
In RMB
Items Occurred current term Occurred in previous term
Statement on other cash paid related to financing
71. 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 144,984,682.59 189,169,492.78
Plus: Asset impairment provision 50,495,846.02 25,493,258.89
Fixed asset depreciation, gas and petrol depreciation, production goods
913,520,540.47 1,045,357,820.05
depreciation
Amortizing of intangible assets 2,969,528.59 1,316,459.95
Loss from disposal of fixed assets, intangible assets, and other long-term
-17,733,564.05 -3,035,973.05
assets (“-“ for gains)
Financial expenses (“-“ for gains) 391,399,627.37 412,018,386.28
Investment losses (“-“ for gains) -6,584,315.11 -13,555,224.57
Decrease of deferred income tax asset (“-“ for increase) -16,998,515.09 -5,442,045.37
Decrease of inventory (“-“ for increase) -745,030,608.94 -367,397,286.99
Decrease of operational receivable items (“-“ for increase) -883,917,194.53 -514,837,206.85
Increase of operational payable items (“-“ for decrease) -2,177,143,380.54 -1,991,550,780.88
Cash flow generated by business operation, net -2,344,037,353.22 -1,222,463,099.76
2. Major investment and financing operation not involving with cash -- --
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 3,520,088,380.34 2,583,042,559.12
Less: Initial balance of cash 9,792,940,409.40 4,574,532,598.83
Net increasing of cash and cash equivalents -6,272,852,029.06 -1,991,490,039.71
(2) Net cash paid for acquisition of subsidiaries
In RMB
Amount
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In which: --
In which: --
In which: --
Remarks:
(3) Net cash received from disposal of subsidiaries
In RMB
Amount
In which: --
In which: --
In which: --
Remarks:
(4) Composition of cash and cash equivalents
In RMB
Items Closing balance Opening balance
I. Cash 3,520,088,380.34 9,792,940,409.40
Incl: Cash in stock 71,255.41 14,168.01
Bank savings could be used at any
3,520,017,124.93 9,327,019,862.06
time
III. Balance of cash and cash equivalents at
3,520,088,380.34 9,792,940,409.40
end of term
Remarks:
72. Notes to statement of change in owners’ equity
Remarks on “other” items adjusted upon the closing balance of previous year:
73. Asset with ownership or using rights under restriction
In RMB
Items Closing book value Causation of limitation
Monetary capital 175,479,435.16 Deposit for bank accepted drafts
Total 175,479,435.16 --
Remarks:
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74. Monetary items in foreign currency
(1) Monetary items in foreign currency
In RMB
Balance translated to RMB at
Items Balance at end of period Exchange rate
end of year
Incl. USD 298,570,874.61 6.1136 1,825,342,899.02
EURO 18,634.83 6.8699 128,019.42
HKD 567,870.80 0.7886 447,822.91
Incl. USD 100,000,000.00 6.1136 611,360,000.00
JPY 287,474,687.62 0.0501 14,402,481.85
Remarks:
(2) Statement on overseas entities, including location, booking currency, as well as reasons of changing
booking currency if any.
[] Applicable; [V] Not applicable
VIII. Equity in other entities
1. Equity in subsidiaries
(1) Composition of the group
Share
Main business Business
Name of the subsidiaries Reg. Add. proportion % Way of obtain
location property
Direct Indirect
Business combination under
Xiamen Bengang Steel Sales Ltd. Xiamen Xiamen Sales 100.00%
common control
Business combination under
Wuxi Bengang Steel Sales Ltd. Wuxi Wuxi Sales 100.00%
common control
Business combination under
Tianjin Bengang Steel Trading Ltd. Tianjin Tianjin Sales 100.00%
common control
Nanjing Bengang Steel Material Sales Business combination under
Nanjing Nanjing Sales 100.00%
Ltd. common control
Business combination under
Yantai Bengang Steel Sales Ltd. Yantai Yantai Sales 100.00%
common control
Haerbin Bengang International Business combination under
Harbin Harbin Sales 100.00%
Trading Ltd. common control
Business combination under
Changchun Bengang Steel Sales Ltd. Changchun Changchun Sales 100.00%
common control
Guangzhou Bengang Trade Co., Ltd. Guangzhou Guangzhou Sales 100.00% Incorporation
Shanghai Bengang Metallurgy Tech.
Shanghai Shanghai Sales 100.00% Incorporation
Ltd.
Bengang Steel Plate Liaoyang Orel
Liaoyuang Liaoyuang Production 100.00% Incorporation
Ball Co., Ltd.
Dalian Benruitong Automobile
Dalian Dalian Production 65.00% Incorporation
Material Technologies Co., Ltd.
104
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Bengang Puxiang Cool Rolling Steel Business combination under
Benxi Benxi Production 75.00%
Sheet Co., Ltd. common control
Remarks on differences between shareholding and voting rights:
Basis of recognizing the investees in which the Company holds less than half of shares but has control power, or in which the
Company holds more than half of shares but has no control power:
Basis of material structural entities in the range of consolidation or under control:
Basis of recognizing the Company as agent or consignor:
Remarks:
(2) Material non-fully-owned subsidiaries
In RMB
Gains/loss of the period Dividend announced in Balance of equity of
Share portion of minor
Name of the subsidiaries attributable to minor the period to minor minor shareholders at
shareholders
shareholders shareholders end of period
Bengang Puxiang Cool
Rolling Steel Sheet Co., 25.00% 18,677,102.78 436,944,980.50
Ltd.
Dalian Benruitong
Automobile Material 35.00% -1,699,556.45 32,329,427.35
Technologies Co., Ltd.
Remarks on the difference between shareholding and voting rights of the minority shareholders:
Remarks:
(3) Material financial information of material non-fully-owned subsidiaries
In RMB
Name of Closing balance Opening balance
the Non-curr Current Non-curr Non-curr Current Non-curr
Current Total of Total of Current Total of Total of
subsidiar ent Liabilitie ent ent Liabilitie ent
Assets assets liability Assets assets liability
ies assets s liabilities assets s liabilities
Bengang
Puxiang
Cool
1,562,82 2,633,49 4,196,32 2,448,54 2,448,54 1,804,90 2,768,70 4,573,61 2,900,54 2,900,54
Rolling
7,694.64 5,332.13 3,026.77 3,104.81 3,104.81 8,327.93 7,380.04 5,707.97 4,197.11 4,197.11
Steel
Sheet
Co., Ltd.
Dalian 352,526, 172,161, 524,688, 432,318, 432,318, 522,882, 175,596, 698,479, 601,253, 601,253,
105
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Benruito 866.66 546.65 413.31 620.89 620.89 668.78 493.34 162.12 494.12 494.12
ng
Automo
bile
Material
Technolo
gies Co.,
Ltd.
In RMB
Occurred current term Occurred in previous term
Name of the Cash flow for Cash flow for
Total misc Total misc
subsidiaries Turnover Net profit business Turnover Net profit business
gains gains
activities activities
Bengang
Puxiang Cool
2,906,688,92 74,708,411.1 74,708,411.1 1,003,284,38 3,781,533,72 53,772,358.9 53,772,358.9 -207,306,696.
Rolling Steel
8.01 0 0 0.53 1.93 8 8 22
Sheet Co.,
Ltd.
Dalian
Benruitong
Automobile 355,356,585. 24,288,981.7 99,629,475.0 53,772,358.9 27,409,566.3
-4,855,875.58 -4,855,875.58 -2,403,089.22
Material 83 6 3 8 6
Technologies
Co., Ltd.
Remarks:
(4) Major restrictions on using of the Group’s asset and settling of debts
(5) Financial or other support provided to structural entities in the consolidation range
Remarks:
106
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2. Transaction causes change of shareholding position of the Company in a subsidiary but the Company
still holds controlling power
(1) Statement on change of share of equity in subsidiary
(2) Influence of the transaction on minority shareholders’ equity and owner’s equity attributable to the
parent company
In RMB
Other statements
3. Equity in joint venture arrangement or affiliates
(1) Major joint ventures or affiliates
Share proportion % Accounting basis
Main business
Names of entities Reg. Add. Business property of investment in
location Direct Indirect
the entities
Remarks on the difference between shareholding and voting rights of the Company in the entity:
Basis for recognition of holding less than 20% of shares but has material influence, or holding over 20% of shares but without
material influence:
(2) Major financial information of joint ventures
In RMB
Opening balance / amount of previous
Closing balance / amount of the period
period
Other statements
(3) Major financial information of affiliates
In RMB
Opening balance / amount of previous
Closing balance / amount of the period
period
Other statements
(4) Consolidated financial accounts of minor joint ventures and affiliates
In RMB
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Opening balance / amount of previous
Closing balance / amount of the period
period
Joint ventures: -- --
Total of the following on share proportion -- --
Affiliates: -- --
Total of the following on share proportion -- --
Other statements
(5) Statement on major restrictions on the ability of transferring capital from joint ventures or affiliates to
the Company
(6) Excess loss generated by joint ventures or affiliates
In RMB
Loss of current period not
Accumulative losses of Accumulative losses at end of
Names of entities recognized (or net profit
previous periods not recognized period not recognized
enjoyed)
Other statements
(7) Unrecognized commitment related to investment in joint ventures
(8) Contingent liabilities related to investment in joint ventures or affiliates
4. Major joint operation
Description of the Main business Share portion
Reg. Add. Business property
joint operation location Direct Indirect
Statement on differences between share and voting rights in joint operation:
Basis of recognizing joint operation if the operation is an individual entity:
Other statements
5. Equity in structural entities not consolidated
Remarks on structural entities not consolidated:
6. Others
IX. Risks associated with financial instruments
(1) Credit risk
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Credit risk refers to a financial loss to a party due to failure to discharge an obligation by the counterparties.
The Company is exposed to credit risk arising from customers failure to discharge an obligation in sales on
credit. In order to minimize the credit risk, the management of the Company is responsible for determination
of credit limits, credit approvals and other monitoring procedures to ensure that follow-up actions are taken to
recover overdue debts.
In addition, the Company strictly approves the line of credit, and only sells on credit to important customers
for newly-developed products. In the monitoring of credit risk of customers, the Company sorts customers
into groups by their credit characteristics. Those customers which are rated as “high risk” will be put in the
restricted client list. The Company can only sell to these customers on credit with additional approval;
otherwise the Company must ask for a corresponding deposit in advance.
(2) Market risk
Market risk of financial instruments refers to fluctuations of fair value or future cash flows due to market
price changes, including currency risk, interest rate risk, and other price risk.
1. Interest rate risk
Interest rate risk refers to fluctuations of fair value or future cash flows due to market rate changes. The
Companys exposure to currency risk is primarily arising from variable-rate bank balances and variable-rate
borrowings. Currently, the Company does not have a specific policy to manage its interest rate risk. The
management will carefully choose financing methods, and combine fixed interest rate with variable interest
rate, short-term obligations with long-term obligations. By using effective interest rate risk management
methods, the Company closely monitors interest rate risk and will consider interest-rate swaps to acquire an
expected structure of interest rates shall the need arise.
Although these measures may not ensures that the Company completely avoids the risk of paying at a risk
higher than market risk, or that the cash flow risk relevant to interest income fluctuations is completely
eliminated, in the opinion of the management, these measures could achieve a reasonable balance among
these risks.
2. Currency risk
Currency risk refers to fluctuations of fair value or future cash flows due to exchange rate changes. The
Company has been constantly working on the adjustment of the organizational framework of risk
management and optimization of debt structures to lower the currency risk.
(3) Liquidity risk
Liquidity risk refers to the risk of shortage of funds which occurs in fulfilling the obligation of settlement in a
manner of delivering cash or other financial assets. The Companys policy is to maintain sufficient cash to
meet maturing obligations. Liquidity risk is centralized controlled by the Companys finance department.
Through the monitoring of unrestricted cash and cash equivalents, bank acceptance bills due in short time and
the continues forecasting of cash flow in the next 12 months, the finance department ensures that the
Company has sufficient cash to meet obligations in all predicted reasonable circumstances.
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
The following table details the Companys mature date of residual contract value of underivative financial
liabilities to repay according to the contract terms. The table has been drawn up based on the undiscounted
cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The
Closing balance
Items
within 1 yr 1-2 yrs 2-5 yrs over 5 yrs Total
Trade and other payables 738,831.66 61,822.84 596.38 801,250.88
Loans 1,618,675.37 9,800.00 158,700.00 12,440.25 1,799,615.62
Total 2,357,507.03 71,622.84 158,700.00 13,036.63 2,600,866.50
table includes both interest and principal cash flows.
X. Related parties and related transactions
1. Parent companies of the Company
Percentage of shares
Name of the parent of the parent Voting rights of the
Reg. Add. Business property Registered capital
co. company in the parent company
Company
Benxi Steel (Group)
Benxi Production 53.69 77.10% 77.10%
Co., Ltd.
Bengang Group Co.,
Benxi Production 180.00 77.10% 77.10%
Ltd.
Particulars about the parent company of the Company
Note: The ultimate controlling party of the Company is the State-owned Assets Supervision and Administration Commission of
Liaoning Province.
2. Subsidiaries of the Company
For details of subsidiaries of the Company please refer to Note 7 “Equity in other entities”.
3. Joint ventures and affiliates
Please find the related notes.
110
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Other joint ventures or affiliates with related transactions with the Company in current period or carried over from previous period.
Name of the entity Relationship with the Company
Other statements
4. Details of other related parties
Name of the related parties Relationship between the Company and other related parties
Bengang Group International Trading Ltd. Same parent
Bengang Group Hong Kong Ltd. Both under Bengang Group
Bengang Stainless Cool-rolling (Dandong) Co., Ltd. Same parent
Benxi Beiying Steel & Iron (Group) Co., Ltd. Both under Bengang Group
Benxi Beiying Steel & Iron Group Import & Export Co., Ltd. Both under Bengang Group
Bengang Electronics Co., Ltd. Same parent
Benxi Steel (Group) Real-estate Development Co., Ltd. Same parent
Benxi Steel (Group) Steel Process and Logistics Co., Ltd. Same parent
Bengang (Group) Engineering Supervisory Co., Ltd. Same parent
Benxi Steel (Group) Machinery Co., Ltd. Same parent
Benxi Steel (Group) Construction Co., Ltd. Same parent
Benxi Steel (Group) Mining Co., Ltd. Same parent
Benxi Steel (Group) Thermal Power Development Co., Ltd. Same parent
Benxi Steel (Group) Designing Institute Same parent
Benxi Steel (Group) Industrial Development Co., Ltd. Same parent
Benxi Steel (Group) Information & Automatic Tech. Co., Ltd. Same parent
Benxi Steel (Group) Construction & Repairing Co., Ltd. Same parent
Benxi Steel (Group) Metallurgy Residues Co., Ltd. Same parent
Benxi Steel (Group) Medical Co. Ltd. Same parent
Benxi Steel & Iron Group Ltd. News Center Same parent
Benxi Steel & Iron (Group) Zhengtai Construction Materials Co.,
Same parent
Ltd.
Benxi Steel (Group) Drilling Tools Co., Ltd. Same parent
Benxi Steel New Business Development Co., Ltd. Same parent
Dalian Boluole Steel Tube Ltd. Same parent
Guangshou Free Trade Zone Bengang Sales Co., Ltd. Both under Bengang Group
Liaoning Bengang Steel & Iron Trading Co., Ltd. Both under Bengang Group
Liaoning Hengtai Heavy Machine Co., Ltd. Both under Bengang Group
Liaoning Hengtong Metallurgy Equipment Co., Ltd. Both under Bengang Group
Liaoning Metallurgy Technician College Same parent
Liaoning College of Metallurgy Technologies Same parent
Shanghai Bengang Steel & Iron Trading Co., Ltd. Both under Bengang Group
Tianjin Bengang Steel Plate Processing and Delivery Co., Ltd. Both under Bengang Group
Suzhou Bengang Industrial Co., Ltd. Shareholding company
Shanghai Bengang Steel Sales Ltd. Both under Bengang Group
Benxi Steel & Iron Group Hospital Both under Bengang Group
Other statements
5. Related transactions
(1) Related party transactions of purchasing goods and services
Company as the purchaser
In RMB
Over
Subjects of the related Occurred current Amount of trade Occurred in
Related parties trading or
transactions term approved previous term
not
Benxi Steel (Group) Co., Ltd. Maintaining 150,020,402.85 320,000,000.00 No 159,113,841.48
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Benxi Steel (Group) Co., Ltd. Land rent 28,713,000.00 28,713,000.00
Bengang Stainless Cool-rolling
Products in stock 301,149.02 10,000,000.00 No 1,845,603.83
(Dandong) Co., Ltd.
Benxi Steel (Group) Mining
Labor service 3,346,106.00 694,490.87
Co., Ltd.
Benxi Steel (Group) Mining
Raw materials 2,693,692,233.97 5,500,000,000.00 No 2,552,465,985.10
Co., Ltd.
Benxi Steel (Group) Mining
Transportation 72,000.00 890,400.00
Co., Ltd.
Benxi Steel (Group) Metallurgy
Raw materials 63,266,548.75 250,000,000.00 No 121,013,278.50
Residues Co., Ltd.
Benxi Steel (Group) Steel
Process fee 845,234.20 8,000,000.00 No 1,569,362.91
Process and Logistics Co., Ltd.
Benxi Steel (Group) Real-estate
Raw materials 39,045,563.54 80,000,000.00 No 40,643,417.89
Development Co., Ltd.
Benxi Steel (Group) Machinery
Spare parts 68,669,575.05 350,000,000.00 No 73,666,811.36
Co., Ltd.
Benxi Steel (Group) Machinery
Repairing services 1,325,019.00 8,919,745.30
Co., Ltd.
Benxi Steel (Group)
Spare parts 193,488.82 1,868,596.75
Construction Co., Ltd.
Benxi Steel (Group)
Engineering fee 185,397,005.60 800,000,000.00 No 204,005,673.77
Construction Co., Ltd.
Benxi Steel (Group)
Raw materials 2,170,267.40 1,246,362.00
Construction Co., Ltd.
Benxi Steel (Group)
Transportation 2,073,764.37 1,595,092.99
Construction Co., Ltd.
Benxi Steel (Group) Industrial
Spare parts 1,320,790.65 20,104,848.00
Development Co., Ltd.
Benxi Steel (Group) Industrial
Raw materials 115,178,532.12 450,000,000.00 No 121,188,436.98
Development Co., Ltd.
Benxi Steel (Group) Industrial
Repairing services 11,946,566.34 9,115,693.77
Development Co., Ltd.
Benxi Steel (Group) Industrial
Transportation 3,365,404.99 3,406,128.29
Development Co., Ltd.
Benxi Steel (Group) Industrial
Project payment 75,675.68
Development Co., Ltd.
Benxi Steel (Group)
Construction & Repairing Co., Material and parts 2,622,245.20 3,451,985.99
Ltd.
Benxi Steel (Group)
Construction & Repairing Co., Engineering 26,414,500.14 250,000,000.00 No 55,038,100.23
Ltd.
Bengang Electronics Co., Ltd. Raw materials 52,998,460.27 200,000,000.00 No 56,813,806.47
Bengang Electronics Co., Ltd. Repairing services 7,479,548.00 12,080,642.00
Benxi Steel (Group) Drilling
Spare parts 153,200.60 10,000,000.00 No 202,618.89
Tools Co., Ltd.
Benxi Steel New Business
Labour security fee 1,356,452.00 12,000,000.00 No 2,112,615.41
Development Co., Ltd.
Liaoning Metallurgy Technician
Spare parts 7,282,031.36 10,000,000.00 No 8,142,107.15
College
Bengang Group International
Commission 143,726,573.24 350,000,000.00 No 171,221,627.42
Trading Ltd.
Benxi Steel (Group)
Information & Automatic Tech. Spare parts 7,625,775.27 5,126,648.35
Co., Ltd.
Benxi Steel (Group)
Information & Automatic Tech. Repairing services 4,807,474.00 50,000,000.00 No 2,950,800.00
Co., Ltd.
Benxi Steel (Group) Thermal
Heating fee 6,151,247.20 20,000,000.00 No 6,355,074.51
Power Development Co., Ltd.
Benxi Steel (Group) Designing
Engineering fee 3,333,396.23 50,000,000.00 No 5,212,820.51
Institute
Benxi Beiying Steel & Iron
Raw materials 3,101,614,671.68 8,000,000,000.00 No 3,902,954,510.94
(Group) Co., Ltd.
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Liaoning Hengtong Metallurgy Raw materials and
55,764,968.30 120,000,000.00 No 37,558,632.64
Equipment Co., Ltd. parts
Liaoning Hengtai Heavy Raw materials and
15,708,326.80 60,000,000.00 No 1,628,256.50
Machine Co., Ltd. parts
Liaoning Hengtai Heavy
Repairing and service 8,823,963.14 2,864,147.00
Machine Co., Ltd.
Total 6,816,881,161.77 16,900,000,000.00 7,625,781,163.80
Selling of goods and services
In RMB
Subjects of the related Occurred current Occurred in previous
Related parties
transactions term term
Bengang Electronics Co., Ltd. Power supply 78,293.74 700,469.03
Benxi Beiying Steel & Iron (Group) Co., Ltd. Material and parts 19,700,091.10 118,255,143.43
Benxi Beiying Steel & Iron (Group) Co., Ltd. Products 3,378,802.77 358,880,112.44
Benxi Steel (Group) Real-estate Development Co.,
Power supply 705,737.19 1,702,929.02
Ltd.
Benxi Steel (Group) Steel Process and Logistics Co.,
Power supply 444,453.67 468,857.96
Ltd.
Benxi Steel (Group) Steel Process and Logistics Co.,
Products 141,670,736.20 330,409,969.94
Ltd.
Benxi Steel (Group) Machinery Co., Ltd. Products 839,738.62
Benxi Steel (Group) Machinery Co., Ltd. Power supply 10,701,410.40 14,909,589.10
Benxi Steel (Group) Machinery Co., Ltd. Material and parts 4,051,183.56
Benxi Steel (Group) Construction Co., Ltd. Power supply 2,884,649.08 4,080,829.72
Benxi Steel (Group) Construction Co., Ltd. Material and parts 49,098,480.69 35,430,417.09
Benxi Steel (Group) Mining Co., Ltd. Power supply 373,787,318.32 343,017,387.92
Benxi Steel (Group) Mining Co., Ltd. Material and parts 43,619,274.00 59,217,024.97
Benxi Steel (Group) Mining Co., Ltd. Freight income 4,409,416.20 4,864,821.72
Benxi Steel (Group) Thermal Power Development
Power supply 20,895,927.80 22,332,797.51
Co., Ltd.
Benxi Steel (Group) Thermal Power Development
Material and parts 4,914,186.95 371,647.98
Co., Ltd.
Benxi Steel (Group) Thermal Power Development
Freight income 59,129.25
Co., Ltd.
Benxi Steel (Group) Industrial Development Co.,
Power supply 4,233,719.89 4,088,538.94
Ltd.
Benxi Steel (Group) Industrial Development Co.,
Material and parts 24,081,669.68 77,486,410.46
Ltd.
Benxi Steel (Group) Construction & Repairing Co.,
Power supply 561,036.72 813,066.96
Ltd.
Benxi Steel (Group) Construction & Repairing Co.,
Material and parts 1,379,764.22
Ltd.
Benxi Steel (Group) Metallurgy Residues Co., Ltd. Power supply 2,074,983.11 2,176,229.04
Benxi Steel (Group) Metallurgy Residues Co., Ltd. Material and parts 18,338,528.40 35,000,469.46
Benxi Steel (Group) Metallurgy Residues Co., Ltd. Freight income 2,357.15
Benxi Steel (Group) Co., Ltd. Power supply 33,605,322.93 40,727,759.65
Benxi Steel (Group) Co., Ltd. Material and parts 3,576,864.39 3,897,784.08
Benxi Steel New Business Development Co., Ltd. Power supply 190,128.89 168,285.41
Dalian Boluole Steel Tube Ltd. Products 2,906,516.56 4,367,969.43
Liaoning Bengang Steel & Iron Trading Co., Ltd. Products 339,106,694.32 363,037,262.77
Tianjin Bengang Steel Plate Processing and Delivery
Products 57,201,613.95
Co., Ltd.
Liaoning Hengtong Metallurgy Equipment Co., Ltd. Power supply 7,482,560.51 7,291,565.17
Liaoning Hengtong Metallurgy Equipment Co., Ltd. Material and parts 7,225,915.11 8,642,889.67
Bengang Group Dahe Industry Co., Ltd. Power supply 784,414.41 651,359.85
Bengang Stainless Cool-rolling (Dandong) Co., Ltd. Material and parts 1,217,061.50 7,804,683.00
Total 1,126,626,603.13 1,909,377,649.88
The transaction content and pricing policies are settled in the agreements such as “Raw material and service
rendering agreement” and “Land use right lease contract”.
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It is agreed that the Group shall provide to the Company raw material, supplementary material, supporting
services, usage of the trademark and patents, rent and so on; and the Company shall sell the Group product,
supplementary material, energy, accessories, waste materials and so on.
The transaction pricing policies are as follows:
(1) The Group shall charge for services provided to the Company in accordance with the following policies:
1. Supply of raw materials
1.1 Fine iron ore
Price of fine iron ore shall not be higher than the average customs C&F price from countries like Brazil and
Australia in the last half year plus inland freight, port surcharges, incidental expenses, and quality price
adjustment.
Quality Price adjustment shall be based on the weighted average of imported fine iron ore in the last half year
and on the basis of 10 Yuan per ton to 1% of quality difference.
1.2 Pellet ore
As for the pellet ore provided by the Group, price is determined by the market price.
1.3 Scrap steel
As for the scrap steel provided by the Group, price is based on the weighted average price of purchasing of
same quality product from independent third parties by the company in the last month.
1.4 Billet
As for the billet provided by the Group, price of a month is determined by the market price of the same
quality products. If there is no market price, price is based on full costs plus the national additional tax.
1.5 Imported fine iron ore
As for the imported fine iron ore provided by Bengang Group Hong Kong Co., Ltd., price is set as the sum of
the purchasing price of Bengang Group Hong Kong Co., Ltd. and financial costs shouldered by Bengang
Group Hong Kong Co., Ltd. if the Company defers the payment. The price shall not be higher than the sum of
average purchasing price of the same quality products and interests of domestic loans in the same period if the
Company defers the payment.
2. Supply of supplementary materials and public services
As for the supplementary materials and public services provided by the Group, price is determined by the
market price.
3. Supporting services
3.1 Lease of land
As for the land use rights leased from the Group, leasing price is due to the “Land use right lease contract”
and supplementary agreement with the Group.
3.2 Lease of 1780mm and 2300mm hot rolling mill production line
As for the 1780mm and 2300mm hot rolling mill production line leased from the Group, price is due to the
policies under the “Leasing contract” signed with Benxi Beiying Steel and Iron (Group) Co., Ltd. and the
Group respectively.
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
3.3 Transportation service and spare parts
As for the transportation service and the self-processed spare parts provided by the Group, price is determined
by the market price.
3.4 Maintenance and repair service of plants and equipment
As for the maintenance and repair of plants and equipment which cannot be completed by the Company, the
Group agrees to provide the service, and price is based on difficulty and amount of work.
3.5 Agency service
Before the Company obtains the rights to import and export, the import and export business of the Company
is deputized by the Group. The business involved is conducted as normal business practices. The agency fee is
due to the specific affair and settled within the range of 0.5% to 1.5% of the total value of import or export
goods.
The Company has the right to inform the Group to terminate the agency relationship after obtaining the rights
to import and export. The Group is not the exclusive agency, so the Company has the right to choose an
independent third party to complete the agency business.
3.6 Services of which price is determined by the national price
As for the engineering design, heating, copies, newspaper, media and other publications provided by the
Group, price is determined by the national price.
3.7 Services of which price is determined by the market price
As for the engineering construction, leasing of education facilities, occupation technology education, and staff
training, use of office building, business transportation, property management, packing, and labor protection
service provided by the Group, price is determined by the market price.
3.8 Processing service
As for the fee generated from the flattening work of hot rolled plate that entrusted to the Group, price is based
on the actual processing costs and shall be approved each year.
As for the fee generated from the processing of part of iron resources that entrusted to the Group, price is
based on the actual processing costs and shall be approved each year.
3.9 Steel
As for the steel product (including but not limited to plates, long products and pipes) provided by the Group,
price of a month is based on the weighted average selling price of the same quality products to independent
third parties by the Group in the last month.
3.10 Trademark
The trademark “Bengang” (Registration ID 149389) was registered by Benxi Steel (Group) Co., Ltd., a
wholly-owned subsidiary of the Group, in 1981 at the Trademark Office of the State Administration for
Industry and Commerce. The range includes steel, strip steel, metal products, steel wire, steel pipe, steel billet,
steel sheet, plate, pig iron, and fine iron ore.
The trademark “Bengang” is permitted free for the Company to use by the Group within the above range. The
Company shall not allow others to use it. The Group does not allow any third party to use the trademark on
competing products.
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
3.11 Raw material, supplementary material and spare parts
As for the raw material, supplementary material and spare parts purchased by the Group on behalf, price is
based on purchasing price of the Group plus 0.5% to 1.5% of purchasing fee.
3.12 Quality inspection, measurement and weight
As for the quality inspection, measurement and weight which could not be completed by the Company, the
Group agrees to provide these services and price is determined by the national price.
3.13 Port charges
As for the port services provided by the Group, fee it is charged based on actual fees such as port surcharges,
customs fees, inspection fees plus agency fee. Price of agency fee is 2.5 RMB/t for domestic trade and 1
RMB/t for foreign trade.
(2) The Company shall charge for services provided to the Company Group in accordance with the following
policies:
1. Supply of raw material
1.1 Hot rolled sheet and cold rolled products
As for the hot rolled sheet and cold rolled products provided to the Group, price of a month is determined by
the weighted average price of selling goods with same quality to third parties in the last month.
1.2 Coke, pellet and chemical products
As for the coke, pellet and chemical products produced by the Company, price is determined by the market
price.
1.3Billet
As for the billet provided to the Group, price of a month is determined by the market price of same quality
product. If there is no market price, price is based on full costs plus the national additional tax.
1.4 Steel making slag and iron making slag (water slag)
As for the steel making slag and iron making slag (water slag) provided to the Group, the Group is
responsible for the disposal, and price is determined by the market price.
2. Public services
As for the public services provided to the Group such as the oxygen, nitrogen, argon, blast furnace gas、
converter gas, COG, stream, purified water, new water, central water, soft water, telephone and so on, price is
based on full costs plus the national additional tax and rational profit.
As for the electricity provided to the Group, price is based on the national price plus the transfer-in costs of
the electricity.
3. Supporting services
3.1 Services of which price is determined by the national price
As for the railway transportation quality inspection, measurement and weight, and research and development
service provided to the Group, price is determined by the national price.
3.2 Raw material, supplementary material and, spare parts
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
As for the raw material, supplementary material and spare parts purchased by the Company on behalf, price is
based on purchasing price of the Company plus 0.5% to 1.5% of purchasing fee.
(2) Lease information of related parties
Company as the lessor (In Yuan)
Gains from
Nature of the leasing or
Name of the Name of the
asset to be Start date Terminating date Pricing basis contracting
employer undertaker
undertaken recognized this
period
Statement on the trusteeship and contracting:
Company as the lessee
In RMB
Expenses of
leasing or
Name of the Name of the Category of asset
Start date End date Pricing basis contracting
employer undertaker leased out
recognized this
period
Remarks on related contracting
(3) Related leasing
Company as the lessor
In RMB
Rental income recognized this Rental income recognized
Name of the tenant Category of asset for rent
period previous period
Benxi Steel (Group) Steel
Warehouse and auxiliary 500,000.00 975,500.00
Process and Logistics Co., Ltd.
Company as the lessee
In RMB
Rental expense recognized last
Name of the owner Category of asset for rent Rental recognized this period
period
Benxi Steel (Group) Co., Ltd. 2300 hot rolling line 120,000,000.00 180,000,000.00
Benxi Steel (Group) Co., Ltd. Land using right 28,713,000.00 28,713,000.00
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Benxi Beiying Steel & Iron
1780 hot-rolling line 65,949,367.29 65,956,008.06
(Group) Co., Ltd.
Statement on related leasing
(1)()2300,20151120171231:,3.5
(2)(),2009415,7,669,068.17,0.624,5,742.60
(3)()1780,20141120161231:,1.5
(4) Related guarantees
Company as the provider
In RMB
Beneficiary Amount guaranteed Start date Due date Completed or not
The Company as the provider
In RMB
The provider Amount guaranteed Start date Due date Completed or not
Benxi Steel (Group) Co., Ltd. 14,402,481.85 Sept 10 1997 Sept 10 2027 No
Bengang Group Co., Ltd. 15,000,000.00 Dec 29 2014 Mar 21 2017 No
Bengang Group Co., Ltd. 87,000,000.00 Mar 26 2015 Mar 21 2019 No
Bengang Group Co., Ltd. 100,000,000.00 Jun 25 2015 Sept 21 2021 No
Benxi Steel (Group) Co., Ltd. 611,360,000.00 Aug 20 2014 Mar 13 2016 No
Bengang Group Co., Ltd. 90,000,000.00 Dec 21 2012 Nov 20 2015 No
Benxi Steel (Group) Co., Ltd. 83,000,000.00 Dec 28, 2012 Sept 20 2015 No
Benxi Steel (Group) Co., Ltd. 250,000,000.00 Nov 10 2014 Nov 9 2015 No
Benxi Steel (Group) Co., Ltd. 200,000,000.00 Dec 19 2014 Dec 18 2015 No
Benxi Steel (Group) Co., Ltd. 100,000,000.00 Jul 18 2014 Jul 17 2015 No
Benxi Steel (Group) Co., Ltd. 200,000,000.00 July 30, 2014 Jul 29 2015 No
Benxi Steel (Group) Co., Ltd. 80,000,000.00 Dec 25 2014 Dec 24 2015 No
Benxi Steel (Group) Co., Ltd. 200,000,000.00 Dec 12 2014 Dec 10 2015 No
Bengang Group Co., Ltd. 100,000,000.00 Sept 30 2014 Sept 30 2015 No
Bengang Group Co., Ltd. 200,000,000.00 Sept 30 2014 Sept 30 2015 No
Bengang Group Co., Ltd. 250,000,000.00 Jan 9 2015 Jan 9 2016 No
Bengang Group Co., Ltd. 200,000,000.00 May 28 2015 May 28 2016 No
Bengang Group Co., Ltd. 200,000,000.00 Jan 23 2015 Jan 23 2016 No
Bengang Group Co., Ltd. 45,000,000.00 Sept 16 2014 Sept 15 2015 No
Bengang Group Co., Ltd. 130,000,000.00 June 30, 2015 Jun 28 2016 No
Bengang Group Co., Ltd. 130,000,000.00 June 30, 2015 Jun 29 2016 No
Bengang Group Co., Ltd. 140,000,000.00 May 15 2015 May 15 2016 No
Bengang Group Co., Ltd. 200,000,000.00 May 14 2015 May 14 2016 No
Bengang Group Co., Ltd. 160,000,000.00 May 14 2015 May 14 2016 No
Bengang Group Co., Ltd. 611,360,000.00 Aug 27 2014 Aug 21 2015 No
Bengang Group Co., Ltd. 489,088,000.00 Mar 26 2015 Mar 25 2016 No
Bengang Group Co., Ltd. 91,704,000.00 Apr 28 2015 Apr 21 2016 No
Bengang Group Co., Ltd. 489,088,000.00 Jun 29 2015 Jun 23 2016 No
Bengang Group Co., Ltd. 305,680,000.00 July 24, 2014 Jul 23 2015 No
Bengang Group Co., Ltd. 305,680,000.00 July 24, 2014 Jul 23 2015 No
Bengang Group Co., Ltd. 122,272,000.00 Nov 20, 2014 Nov 12 2015 No
Benxi Steel (Group) Co., Ltd. 550,224,000.00 May 14 2015 May 13 2016 No
Benxi Steel (Group) Co., Ltd. 605,246,400.00 May 14 2015 May 13 2016 No
Benxi Steel (Group) Co., Ltd. 917,040,000.00 May 15 2015 May 14 2016 No
Benxi Steel (Group) Co., Ltd. 152,840,000.00 Mar 27 2015 Sept 23 2015 No
Benxi Steel (Group) Co., Ltd. 244,544,000.00 March 31, 2015 Sept 25 2015 No
Benxi Steel (Group) Co., Ltd. 122,272,000.00 Mar 27 2015 Sept 23 2015 No
Benxi Steel (Group) Co., Ltd. 189,516,752.65 Mar 16 2015 Sept 11 2015 No
Benxi Steel (Group) Co., Ltd. 195,635,200.00 Mar 20 2015 Sept 16 2015 No
118
Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
Benxi Steel (Group) Co., Ltd. 200,000,000.00 July 30, 2014 Jul 29 2015 No
Benxi Steel (Group) Co., Ltd. 100,000,000.00 Oct 21 2014 Oct 20 2015 No
Benxi Steel (Group) Co., Ltd. 100,000,000.00 Feb 10 2015 Jan 27 2016 No
Benxi Steel (Group) Co., Ltd. 200,000,000.00 June 30, 2015 Jun 29 2016 No
Bengang Group Co., Ltd. 300,000,000.00 July 31, 2014 July 31 2015 No
Bengang Group Co., Ltd. 220,000,000.00 Oct 31 2014 Oct 31 2015 No
Bengang Group Co., Ltd. 180,000,000.00 Sept 10 1997 Nov 4 2015 No
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.,
12,606,580.62 Sept 9 2014 Sept 8 2015
Ltd.
Benxi Steel (Group) Co.,
17,974,579.02 Oct 13 2014 Oct 12, 2015
Ltd.
Benxi Steel (Group) Co.,
20,772,574.58 November 07, 2014 Nov 6 2015
Ltd.
Benxi Steel (Group) Co.,
13,411,173.71 December 26, 2014 Dec 25 2015
Ltd.
Benxi Steel (Group) Co.,
18,263,032.96 Apr 28 2015 Apr 27 2016
Ltd.
Benxi Steel (Group) Co.,
11,369,384.16 Jun 4 2015 Jun 3 2016
Ltd.
Lend out
(6) Asset transferring and debt reconstruction with related parties
In RMB
Subjects of the related
Related parties Occurred current term Occurred in previous term
transactions
(7) Remuneration for key management
In RMB
Items Occurred current term Occurred in previous term
(8) Other related transactions
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6. Receivable and payables due with related parties
(1) Account receivable
In RMB
Closing balance Opening balance
Projects Related parties Bad debt Bad debt
Book balance Book balance
provision provision
Account receivable
Benxi Beiying Steel & Iron (Group) Co.,
0.00 0.00
Ltd.
Bengang Electronics Co., Ltd. 2,724,127.51 137,573.58 2,832,523.83 137,573.58
Benxi Steel (Group) Machinery Co., Ltd. 19,525,810.80 406,446.86 24,275,958.45 406,446.86
Benxi Steel (Group) Construction Co., Ltd. 15,753,857.13 2,536,224.36 34,403,576.39 4,618,071.06
Benxi Steel (Group) Industrial Development
21,091,628.72 26,327.90 32,701,472.77 26,327.90
Co., Ltd.
Benxi Steel New Business Development Co.,
3,315,529.21 2,624,507.53 5,307,512.50 2,624,507.53
Ltd.
Benxi Steel (Group) Medical Co. Ltd.
Benxi Steel (Group) Thermal Power
2,123,092.33 1,899,538.46
Development Co., Ltd.
Benxi Steel (Group) Steel Process and
475,500.00 499,126.96
Logistics Co., Ltd.
Bengang Stainless Cool-rolling (Dandong)
1,423,961.96 1,472,716.21
Co., Ltd.
Liaoning Hengtong Metallurgy Equipment
16,234,400.77 23,474,655.50
Co., Ltd.
Bengang Group International Trading Ltd.
Sub-total 82,667,908.43 5,731,080.23 126,867,081.07 7,812,926.93
Prepayments
Benxi Beiying Steel & Iron (Group) Co.,
373,358,521.45 439,245,300.00
Ltd.
Benxi Steel (Group) Construction &
Repairing Co., Ltd.
Liaoning Hengtai Heavy Machine Co., Ltd. 54,080,821.13 62,303,551.36
Benxi Steel (Group) Machinery Co., Ltd. 27,324,685.86 25,526,881.70
Bengang Group International Trading Ltd. 83,135,289.41 108,915,901.27
Bengang Stainless Cool-rolling (Dandong)
161,293.67
Co., Ltd.
Benxi Steel & Iron (Group) Zhengtai
Construction Materials Co., Ltd.
Sub-total 537,899,317.85 636,152,928.00
Other account
receivable
Benxi Steel (Group) Real-estate
1,247,843.52 7,632,946.72 191,498.33
Development Co., Ltd.
Benxi Steel (Group) Construction &
Repairing Co., Ltd.
Liaoning Metallurgy Technician College 30,722.17 15,612.26 156,265.86 15,612.26
Benxi Steel (Group) Machinery Co., Ltd. 160,615.64 239,275.00
Bengang Stainless Cool-rolling (Dandong)
Co., Ltd.
Benxi Steel (Group) Construction Co., Ltd. 775,086.02 775,086.02 881,046.71 873,336.57
Bengang Group International Trading Ltd. 1,859,874.16 5,206,671.93 6,717.52
Benxi Steel (Group) Industrial Development
782,241.24 56,594.36 1,110,481.08 56,594.36
Co., Ltd.
Benxi Steel & Iron (Group) Zhengtai
13,185.57 6,606.76 200,111.37 6,606.76
Construction Materials Co., Ltd.
Benxi Steel (Group) Medical Co. Ltd. 833,513.56 528,954.42 924,587.78 528,954.42
Sub-total 5,703,081.88 1,382,853.81 16,351,386.45 1,679,320.21
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(2) Payable accounts
In RMB
Closing balance of book Opening balance of book
Projects Related parties
value value
Account payable
Benxi Beiying Steel & Iron (Group) Co., Ltd. 120,272,362.94 145,203,134.23
Bengang Electronics Co., Ltd. 7,051,786.66 11,639,049.30
Benxi Steel (Group) Real-estate Development Co., Ltd. 1,369,924.74 2,017,985.89
Bengang Group International Trading Ltd. 3,019,308,013.20 4,169,986,544.24
Benxi Steel (Group) Machinery Co., Ltd. 6,204,813.30 7,050,135.96
Benxi Steel (Group) Construction Co., Ltd. 76,829,057.83 150,369,442.01
Benxi Steel (Group) Mining Co., Ltd. 878,076,006.90 1,412,235,381.68
Benxi Steel (Group) Industrial Development Co., Ltd. 50,109,114.52 41,805,616.64
Benxi Steel New Business Development Co., Ltd. 10,083,078.60 19,708,255.84
Benxi Steel (Group) Construction & Repairing Co., Ltd. 59,128,736.52 84,945,497.19
Benxi Steel (Group) Designing Institute 3,969,024.41 6,820,799.97
Benxi Steel (Group) Metallurgy Residues Co., Ltd. 80,259,031.28 24,273,907.10
Benxi Steel (Group) Medical Co. Ltd. 69,440.35 20,440.35
Benxi Steel (Group) Information & Automatic Tech.
47,338,679.30 49,194,667.86
Co., Ltd.
Benxi Steel (Group) Drilling Tools Co., Ltd. 304,741.29 257,832.31
Liaoning Metallurgy Technician College 7,636,725.41 6,378,792.36
Liaoning Bengang Steel & Iron Trading Co., Ltd. 900,000.00 30,000,000.00
Benxi Steel (Group) Thermal Power Development Co.,
278,349.79 148,068.39
Ltd.
Benxi Steel & Iron (Group) Zhengtai Construction
186,000.00 380,918.20
Materials Co., Ltd.
Liaoning Hengtong Metallurgy Equipment Co., Ltd. 7,413,327.13 0.00
Liaoning College of Metallurgy Technologies 341,534.17 2,004,256.02
Bengang Stainless Cool-rolling (Dandong) Co., Ltd. 713,487.81 863,535.50
Liaoning Hengtai Heavy Machine Co., Ltd. 6,316,142.17 7,153,224.06
Sub-total 4,384,159,378.32 6,172,457,485.10
Notes payable
Benxi Steel (Group) Industrial Development Co., Ltd. 2,118,747.52 1,813,417.63
Benxi Steel (Group) Machinery Co., Ltd. 59,998.75
Benxi Steel (Group) Real-estate Development Co., Ltd.
Bengang Electronics Co., Ltd. 1,035,354.77 401,369.25
Benxi Steel (Group) Construction & Repairing Co., Ltd.
Liaoning Metallurgy Technician College 51,601.41
Benxi Steel (Group) Mining Co., Ltd. 284,613,309.65 46,465,334.09
Benxi Steel (Group) Construction Co., Ltd. 1,348,030.74 562,465.47
Benxi Steel (Group) Information & Automatic Tech.
477,255.62
Co., Ltd.
Sub-total 289,175,441.43 49,771,443.47
Other account
payable
Bengang Electronics Co., Ltd.
Benxi Steel (Group) Real-estate Development Co., Ltd. 2,311,747.28 4,887,294.88
Bengang Group International Trading Ltd. 2,527,907.53 3,067,964.46
Benxi Steel (Group) Machinery Co., Ltd. 79,527.28 10,082.30
Benxi Steel (Group) Construction Co., Ltd. 3,139,624.36 4,292,774.73
Benxi Steel (Group) Industrial Development Co., Ltd. 554,634.42 950,411.36
Benxi Steel New Business Development Co., Ltd. 1,068,924.26 846,071.42
Benxi Steel (Group) Construction & Repairing Co., Ltd. 0.00
Benxi Steel (Group) Metallurgy Residues Co., Ltd. 0.00
Benxi Steel (Group) Medical Co. Ltd. 184,792.14 174,219.95
Benxi Steel (Group) Information & Automatic Tech.
267,349.36 105,000.00
Co., Ltd.
Benxi Steel (Group) Steel Process and Logistics Co.,
4,206,349.47 3,277,425.46
Ltd.
Benxi Steel (Group) Co., Ltd. 103,313,915.01 158,643,367.61
Benxi Steel & Iron Group Ltd. News Center 475,523.45 1,722,726.76
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Liaoning Hengtai Heavy Machine Co., Ltd. 0.00
Benxi Beiying Steel & Iron Group Import & Export
1,779,806.08
Co., Ltd.
Benxi Steel (Group) Thermal Power Development Co.,
759,523.36 0.00
Ltd.
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 122,524,649.00 183,391,976.09
Advances received
Benxi Steel (Group) Machinery Co., Ltd. 554,637.49 392,380.53
Tianjin Bengang Longxing Steel Processing Co., Ltd.
Benxi Steel (Group) Industrial Development Co., Ltd. 1,544,247.68 1,800,534.80
Benxi Steel (Group) Metallurgy Residues Co., Ltd. 158,813.08 548,762.37
Benxi Steel (Group) Steel Process and Logistics Co.,
91,677,316.57 96,764,509.78
Ltd.
Dalian Boluole Steel Tube Ltd. 1,119,432.68 1,838,120.74
Liaoning Bengang Steel & Iron Trading Co., Ltd. 20,709,190.50 22,728,533.19
Liaoning Hengtong Metallurgy Equipment Co., Ltd. 40,421.07 323,523.72
Tianjin Bengang Steel Plate Processing and Delivery
Co., Ltd.
Liaoning Hengtai Heavy Machine Co., Ltd. 184,695.93 184,695.93
Benxi Steel (Group) Thermal Power Development Co.,
39,725.74 3,100,209.92
Ltd.
Bengang Group International Trading Ltd. 14,445,427.32 46,086,929.33
Suzhou Bengang Industrial Co., Ltd. 19,281,728.07 37,105,578.38
Sub-total 149,755,636.13 210,873,778.69
7. Commitment of related parties
8. Others
XI. Share payment
1. Overall situation of share payment
[] Applicable; [V] Not applicable
2. Share payment settled in term of equity
[] Applicable; [V] Not applicable
3. Share payment settled by cash
[] Applicable; [V] Not applicable
4. Revising and termination of share payment
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5. Others
XII. Commitment and contingencies
(1) Commitments
1. Investment contracts not yet performed or in progress and their relevant financial expenditures
As at June 30 2015, the Company has signed but not yet performed contracts amounting to RMB164.332 million for the
infrastructure construction and purchasing of equipment; and contracts performed but still in progress amounting to RMB
1145.7786 million.
2. Lease contracts in progress or to be performed and their financial impacts
(1) For the land leased from the Company to the Group, price is RMB 0.624 per Square meter per month, and the area of the
land is 7,669,068.17 square meters; hence annual rent is RMB 57.426 million.
(2) For the 2300 hot rolling product line leased from the Group to the Company, lease period lasts from 1 January 2015 to 31
December 2017. Lease charges are negotiated between the lessor and the lessee based on the original cost, depreciation, and
national taxation of the product line, with consideration of conditions of production and equipment performance. The annual
rent shall not exceed RMB 350,000,000.00 per year.
(3) For the 1780 hot rolling product line leased from Benxi Beiying Steel & Iron (Group) Co., Ltd. to the Company, the lease
period lasts from 1 January 2014 to 31 December 2016. Lease charges are negotiated between the lessor and the lessee based on
the original cost, depreciation, and national taxation of the product line, with consideration of conditions of production and
equipment performance. The annual rent shall not exceed RMB 150,000,000.00.
For details of above leasing conditions please refer to Note 9 (4) 2.
(2) Contingency
At the balance sheet date, no significant contingencies need to be disclosed.
XIII. Post Balance Sheet Issues
(I) Profit distribution
The 12th meeting of the 6th term of Board was held on April 20, 2015. Basing on the total capital shares of 3,136,000,000 at end
of 2014, RMB0.5 were to be distributed to each 10 shares. Totally RMB156,800,000.00 were to be distributed.
This plan was approved by the Shareholders Meeting 2014 held on May 21, 2015. Implementation announcement was
released by the Board on July 3, 2014. The registration date for A shares was July 9 2014, ex-dividend date was July 10, 2014; and
the registration date for B shares was July 9, 2014, and ex-dividend date was July 14, 2014. The dividend plan had already been
completed as of the date of this report.
(II) Statement on material post-balance-sheet events
On July 20, 2015, the Proposal of Private Issuing of A shares was approved at the 14th meeting of the 6th term of Board. New
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Bengang Steel Plates Co., Ltd. Interim Report 2015 Full Text
shares will be issued to particular subscribers privately to raise RMB4 billion of capital. The fund will mainly be used in
reconstruction of cool-rolled high strength steel, hot galvanizing line project, and repaying of bank loans.
XIV. Other material events
1. Correction of accounting errors in previous period
(1) Retrospective restatement
In RMB
Corrections made on accounting Title of accounts of related Accumulative amount of
Procedures
errors periods influenced influence
(2) Future adoption method
Reason of adopting future adoption
Corrections made on accounting errors Approval procedures
method
2. Debt reconstruction
3. Asset replacing
(1) Non-monetary asset exchange
(2) Other asset exchange
4. Annual premium scheme
5. Termination of operation
In RMB
Termination
Income tax profit attributable
Items Revenue Expenses Total profit Net profit
expenses to owners of
parent co.
Other statements
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6. Segment info
(1) Basis of segment recognizing and accounting policies
(2) Financial info of segments
In RMB
Items Neutralized among segments Total
(3) Statement about why the Company is not reporting segment info or total asset and liabilities of
segments
(4) Other remarks
7. Material trade or issues commit impact on decision of investors
8. Others
XV. Notes to the Financial Statements of the Parent Company
1. Account receivable
(1) Categorized receivable accounts
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categories Book
Proportio Proportio Book value
Amount Amount Rate value Amount Amount Rate
n n
Receivables on
which impairment
1,055,08 136,238, 918,847,1 529,111 140,268,8 388,842,19
provisions are 100.00% 12.91% 100.00% 26.51%
5,718.14 580.22 37.92 ,083.61 88.98 4.63
provided by risk
groups
1,055,08 136,238, 918,847,1 529,111 140,268,8 388,842,19
Total 100.00% 12.91% 100.00% 26.51%
5,718.14 580.22 37.92 ,083.61 88.98 4.63
Receivables of insignificant items but tested for impairment individually
[] Applicable; [V] Not applicable
Account receivables on which bad debt provisions are provided on age basis in the group:
[V] ApplicableNot applicable
In RMB
Age Closing balance
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Account receivable Bad debt provision Rate
1 年以内分项
Within 1 yr, (included) 835,205,495.48
Subtotal of within 1 year 835,205,495.48
1-2 years 62,163,386.45 3,108,169.32 5.00%
2-3 years 30,733,031.64 6,146,606.33 20.00%
Over 3 yrs 126,983,804.57 126,983,804.57 100.00%
Total 1,055,085,718.14 136,238,580.22 12.91%
Receivable accounts on which bad debt provisions are provided on percentage analyze basis in a portfolio
[] Applicable; [V] Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the portfolio
(2) Information of provision, reversal or recovery of bad debts of current period.
Bad debt provision provided this period was RMB0.00. Bad debt provision written back was RMB4,030,308.76 in the period.
Significant items of retrieving or writing back of bad debt provisions:
In RMB
Name of the companies Amount retreived or written back Way of retreiving
(3) Particular about writing off actually made in the period
In RMB
Items Amount written off
Significant amount written off:
In RMB
Name of the Property of the Reason of writing Written off Created by related
Amount written off
companies receivable account off procedures transaction or not
Statement on writing off of receivable accounts.
(4) Top 5 debtors in the receivable accounts
(%)
631,513,712.96 59.85
47,889,868.98 4.54
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29,738,912.85 2.82
() 21,091,628.72 2 26,327.90
() 19,525,810.80 1.85 406,446.86
749,759,934.31 71.06 432,774.76
(5) Receivable accounts unrecognized due to disposal of financial assets
(6) Asset or liability constituted by transferring and continuous involving of receivable accounts
Remarks:
2. Other account receivable.
(1) Other receivables disclosed by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categories Book
Proportio Proportio Book value
Amount Amount Rate value Amount Amount Rate
n n
Other receivables on
which impairment
322,204, 56,282,8 265,921,7 359,158 58,276,86 300,882,01
provisions are 99.46% 17.47% 99.52% 16.23%
615.85 73.92 41.93 ,877.19 3.66 3.53
provided by risk
groups
Other insignificant
items but tested for 1,740,00 1,740,000 1,740,0 1,740,000.0
0.54% 0.48%
impairment 0.00 .00 00.00 0
individually
323,944, 56,282,8 267,661,7 360,898 58,276,86 302,622,01
Total 100.00% 17.37% 100.00% 16.15%
615.85 73.92 41.93 ,877.19 3.66 3.53
Other receivable accounts with large amount and were provided bad debt provisions individually at end of period.
[] Applicable; [V] Not applicable
Other account receivables on which bad debt provisions are provided on age basis in the group:
[V] ApplicableNot applicable
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In RMB
Closing balance
Age
Other account receivable Bad debt provision Rate
Segments within 1 year
Within 1 yr, (included) 261,287,089.82
Subtotal of within 1 year 261,287,089.82
1-2 years 3,264,273.80 163,213.69 5.00%
2-3 years 4,091,990.00 818,398.00 20.00%
Over 3 yrs 55,301,262.23 55,301,262.23 100.00%
Total 323,944,615.85 58,276,863.66 17.99%
Opening balance
Categories Carrying amount Provision for bad debts
Percentage Bad debts Book value
Amount Amount
(%) ratio (%)
Individually significant and tested for
impairment individually
Accounts receivable tested for
359,158,877.19 99.52 58,276,863.66 16.23 300,882,013.53
impairment by portfolio
Portfolio 1: Aging analysis 359,158,877.19 99.52 58,276,863.66 16.23 300,882,013.53
Subtotal of Portfolio 359,158,877.19 99.52 58,276,863.66 16.23 300,882,013.53
Other insignificant items but tested for
1,740,000.00 0.48 1,740,000.00
impairment individually
Total 360,898,877.19 100.00 58,276,863.66 16.15 302,622,013.53
Other receivables individually insignificant but tested for impairment individually
Provision for
Items Carrying Amount Bad debts ratio (%) Reason
bad debts
Sinking Fund of Japanese
yen from Finance Bureau of 1,740,000.00 Sinking fund
Benxi
Total 1,740,000.00
Notes: The Sinking Fund of Japanese yen from Finance Bureau of Benxi is the margin for JPY loans of which the aging is over
3 years and no bad debts provision has been made for it.
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Other receivables tested for impairment by portfolio using the method of Aging analysis：
Ending balance
Items
Carrying amount Carrying amount
Within 1 year (inclusive) 261,287,089.82
1-2 years (inclusive) 3,264,273.80 163,213.69 5.00
2-3 years (inclusive) 4,091,990.00 818,398.00 20.00
Over 3 years 55,301,262.23 55,301,262.23 100.00
Total 323,944,615.85 58,276,863.66 17.99
(2) Information of provision, reversal or recovery of bad debts of current period.
Reversal of bad debts for other receivable in current period is RMB 1,993,989.74.
(3) No other receivables have been written off this year.
(4) Other receivables disclosed by nature
In RMB
Account property Closing balance of book value Opening balance of book value
Trade 274,786,980.82 225,819,363.05
Export tax refund 42,558,816.25 130,788,172.89
Others 6,598,818.78 4,291,341.25
Total 323,944,615.85 360,898,877.19
(5) Top five debtors at the year-end
In RMB
Name of the Percentage of total Provision for
Nature of account Closing balance Age
companies other receivables bad debts
Tax bureau Export tax refund 42,558,816.25 within 1 yr 13.14%
Shenyang Coke Coal
Current account 15,000,000.00 within 1 yr 4.63%
Co., Ltd. Sales Co.
Liaoning Shenjiao
International Trade Current account 10,000,000.00 within 1 yr 3.09%
Co., Ltd.
Nanjing Dongda Current account 10,000,000.00 within 1 yr 3.09%
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Energy Engineering
Institute
Benxi Juyuan Slag
and Furnance Burden Trade 6,911,609.00 within 1 yr 2.13%
Co., Ltd.
Total -- 84,470,425.25 -- 26.08%
3. Long-term equity investment
In RMB
Closing balance Opening balance
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment on
1,690,981,902.16 1,690,981,902.16 1,690,981,902.16 1,690,981,902.16
subsidiaries
Total 1,690,981,902.16 1,690,981,902.16 1,690,981,902.16 1,690,981,902.16
(1) Investment on subsidiaries
In RMB
Impairment
Company invested Increased this Decreased this Ending balance of
Opening balance Closing balance provision impairment
in period period
provided this term
Guangzhou
Bengang Trade 1,000,000.00 1,000,000.00
Co., Ltd.
Shanghai Bengang
Metallurgy Tech. 19,200,000.00 19,200,000.00
Ltd.
Bengang Steel
Plate Liaoyang 529,899,801.38 529,899,801.38
Orel Ball Co., Ltd.
Dalian Benruitong
Automobile
Material 65,000,000.00 65,000,000.00
Technologies Co.,
Ltd.
Bengang Puxiang
1,019,781,571.10 1,019,781,571.10
Cool Rolling Steel
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Sheet Co., Ltd.
Changchun
Bengang Steel -1,355,124.64 -1,355,124.64
Sales Ltd.
Haerbin Bengang
International 423,398.23 423,398.23
Trading Ltd.
Nanjing Bengang
Steel Material 2,081,400.65 2,081,400.65
Sales Ltd.
Wuxi Bengang
936,718.57 936,718.57
Steel Sales Ltd.
Xiamen Bengang
1,095,711.66 1,095,711.66
Steel Sales Ltd.
Yantai Bengang
19,600,329.41 19,600,329.41
Steel Sales Ltd.
Tianjin Bengang
33,318,095.80 33,318,095.80
Steel Trading Ltd.
Total 1,690,981,902.16 1,690,981,902.16
4. Operation income and operation cost
In RMB
Occurred current term Occurred in previous term
Items
Revenue Cost Revenue Cost
Major business 15,855,226,396.28 14,804,473,955.02 19,320,232,643.54 18,119,383,979.86
Other business 1,364,397,276.16 1,239,113,720.27 1,467,421,157.22 1,324,796,884.19
Total 17,219,623,672.44 16,043,587,675.29 20,787,653,800.76 19,444,180,864.05
Remarks:
5. Investment income
In RMB
Items Occurred current term Occurred in previous term
Gains from short-term bank financial
6,584,315.11 12,378,753.42
instruments
Total 6,584,315.11 12,378,753.42
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6. Others
XVI. Supplementary Information
1. Details of non-recurring gain/loss of the term
[V] Applicable []Not applicable
In RMB
Items Amount Remarks
Gain/loss of non-current assets -17,733,564.05
Gains and losses included in the current
period of government subsidies, excluding
those government grants which are closely
31,328,000.00
related to normal business and in line with
national policy , or in accordance with fixed
standards or quantities
Gain/loss from commissioned investment or
6,584,315.11
assets
Gain/loss from debt reorganization 6,439,698.87
Other non-business income and expenditures
1,527,544.44
other than the above
Less: Influenced amount of income tax 5,390,419.82
Influenced amount of minority
29,697.05
shareholders’ equity
Total 22,725,877.50 --
2. Net income on asset ratio and earning per share
Earnings per share
Profit of the report period Net income on asset, weighted Basic earnings per share Diluted earnings per
(Yuan/share) share (Yuan/share)
Net profit attributable to common
0.83% 0.04 0.04
shareholders of the Company
Net profit attributable to the
common owners of the PLC after
0.68% 0.03 0.03
deducting of non-recurring
gains/losses
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Bengang Steel Plates Co., Ltd.
August 3, 2015
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Bengang Steel Plates Co., Ltd. Interim Report 2015 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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