Bengang Steel Plates Co., Ltd. Interim Report 2016
Bengang Steel Plates Co., Ltd.
Interim Report 2016
August 2016
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Bengang Steel Plates Co., Ltd. Interim Report 2016
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.
It describes the risks the company may face in its future operation, so its advised that all investors should look it
up. This report is prepared both in versions of Chinese and English. The Chinese version shall prevail when there
are any controversial statements in the two versions.
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Bengang Steel Plates Co., Ltd. Interim Report 2016
Table of Content
Interim Report 2016
Chapter I. Important Prompts, Table of Contents, and Definitions ..........................................................................................................2
Chapter II. Company Profile....................................................................................................................................................................5
Chapter III. Financial Highlights .............................................................................................................................................................6
Chapter IV. Board of Directors Report ...................................................................................................................................................9
Chapter V. Significant Events ................................................................................................................................................................16
VI. Change of share capital and shareholding of Principal Shareholders ..............................................................................................40
Chapter VII. Particulars about Preference Shares ..................................................................................................................................45
Chapter VIII. Particulars about the Directors, Supervisors and Senior Executives ...............................................................................46
Chapter IX. Financial Report.................................................................................................................................................................46
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. ....................................................................................................................................................178
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Bengang Steel Plates Co., Ltd. Interim Report 2016
Definition
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 2016
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 Sun Yanbin Tong Weigang
No.16, Renmin Road, Pingshan District, Benxi City, No.16, Renmin Road, Pingshan District, Benxi City,
Address
Liaoning Province Liaoning Province
Tel. 024-47828860 024-47827003
Fax. 024-47827004 024-47827004
Email. bgbcsyb@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 2015.
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 2015.
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Bengang Steel Plates Co., Ltd. Interim Report 2016
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 2015.
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
This report term Same period last year Increase/decrease (%)
Turnover (RMB) 12,629,584,569.35 16,344,915,161.18 -22.73%
Net profit attributable to shareholders of
182,538,176.32 128,007,136.26 42.60%
the listed company (yuan)
Net profit attributable to the shareholders
of the listed company and after deducting 164,516,206.59 105,281,258.76 56.26%
of non-recurring gain/loss(RMB)
Net Cash flow generated by business
2,390,777,363.52 -1,878,130,973.89 227.30%
operation (RMB)
Basic earnings per share (Yuan/share) 0.06 0.05 20.00%
Diluted earnings per share (Yuan/share) 0.06 0.05 20.00%
Net income on asset, weighted 1.52% 0.83% 0.69%
Changed at end of report
Ended this report term End of prev. year period over end of previous
period
Gross Assets (RMB) 48,189,076,694.93 44,461,643,345.33 8.38%
Net asset attributable to owners of the PLC 12,122,492,113.58 11,934,100,372.02 1.58%
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Bengang Steel Plates Co., Ltd. Interim Report 2016
II. Differences in accounting information under IAS and domestic accounting standard
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.
√Applicable □ Not applicable
In RMB
Net profit attributable to the shareholders Net Assets attributable to the
of the listed company shareholders of the listed company
Amount in the Amount in the End of the reporting Beginning of the
reporting period previous period period reporting period
According to CAS 182,538,176.32 128,007,136.26 12,122,492,113.58 11,934,100,372.02
Items and amount adjusted according to IAS
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.
3.Accounting data differences between domestic and foreign accounting standards
□ Applicable √Not applicable
III. Non-recurring gain/loss items and amounts
[V] Applicable Not applicable
In RMB
Items Amount Remarks
Non-current asset disposal gain/loss(including the write-off part
2,014,983.90
for which assets impairment provision is made)
Govemment subsidy recognized in current gain and
loss(excluding those closely related to the Companys business 16,622,000.00
and granted under the states policies)
Gain/loss from debt reorganization 4,527,416.04
Other non-business income and expenditures other than the above 926,794.62
Less: Influenced amount of income tax 6,022,798.64
Influence on minority shareholders equity (after tax) 46,426.19
Total 18,021,969.73 --
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Bengang Steel Plates Co., Ltd. Interim Report 2016
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 2016
Chapter IV. Board of Directors’ Report
I. Business overview
During the reporting period, along with the stimulations of the related policies such as the countrys
strongly promoting of structural reform at the supply-side, the domestic steel market began to show a recovery
rebound-trend after the stabilization, as the market price gradually rose, the companys profits slightly increased.
Meanwhile, the company scientifically set up the policy including comprehensively increasing the technological
innovation and R&D capabilities of new products, consolidating the sales-channel, reducing the procurement
costs and digging the internal potential to reduce energy consumption, thus to ensue the realization of the annual
business goal.In January-June 2016, the Company has accomplished output of: iron of4.8976 million tons, an
decrease of 2.54%; steel of 4.7783 million tons, an decrease of 3.31%; hot-rolled plate of 5.4670 million tons,
10.38% of decrease; cool-rolled plate of 1.8529 million tons, an decrease of 1.25%; turnover of RMB12629.5846
million, a decrease of 22.73%; net profit attributable to the parent company of RMB182.5382 million, a increase
of 42.60%.
1. The company was, by virtue of the possessed market sales network, while consolidating the existed market
shares of key customers in industries such as car and household appliance, continuously increasing the intensity of
development of new fields and new customers.
2. Centered on the production, procurement and sales, management and control, technology, human resources etc,
the company carried out the “Costs reduction in all respects”. Concretely, through the continuous optimization of
coal use and the structure of ore proportioning to reduce the processing costs; through using home-made spare
parts and the recycling use to reduce the consuming of spare parts; through overall adjustment on the auxiliary
materials and using the whole contracting mean to reduce the consumption of the auxiliary materials; through
optimizing the energy allocation mean and pushing forward the construction of the project of using secondary
energy, in particular, through key-breakthrough of the furnace coke-ratio and other measures to reduce the fuel
consumption and power consumption.
3. Make innovations on the technological management mode and management system, enhance technological
management level and its service efficiency, build up and perfect the incentive mechanism which is suitable for
the R & D system, create a good environment for technological innovation and fully excite the technological
ability and potential. In addition, fully unitize the social resources and technological policies, actively cooperate
with universities and research institutes, governmental and social institutions, up-stream, down-stream and peer
companies and comprehensively raise the level of technological innovation.
4. Strictly implementing the "safety production law", and in accordance with the requirements of "dual
responsibilities of one post" and the safety management plan of “zero accident and zero injury”, the company
strengthened the system construction in terms of safety, strengthened the safety foundation management, carried
out the special inspection on safety, overhauled and rectified the hidden danger.
5. Implemented according to the environmental laws and regulations, the ecological civilization construction had
achieved remarkable results. Fully implemented by conforming to the Law of Environmental Protection and the
new standard of pollutant emission, greatly promoted the implementation of key environmental protection projects,
actively carried out the comprehensive managing of the factory environments and fully completed the goal of
pollutant emission reduction and the blue-sky project of "The 13th Five-Year Plan".
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Bengang Steel Plates Co., Ltd. Interim Report 2016
II. Analysis of main business
Change in main financial data
In RMB
Change over same period
This report term Same period last year Cause of change
last year
Turnover 12,629,584,569.35 16,344,915,161.18 -22.73%
Operation cost 10,914,182,302.04 14,901,549,350.57 -26.76%
Sales expense 430,061,063.14 478,349,279.14 -10.09%
Administrative expense 351,954,718.48 377,591,047.45 -6.79%
Mainly due to exchange
Financial expenses 586,667,825.19 391,399,627.37 49.89%
net loss increased
Mainly due to this period
Income tax expenses 140,062,221.29 -2,419,204.92 5,889.60%
deferred assets
Mainly due to the current
Input to R&D 489,537,695.09 903,624,000.00 -45.83%
r&d spending less
Mainly due to paid in
current period to
Cash flow generated by
2,390,777,363.52 -1,878,130,973.89 227.30% purchase goods or
business operation, net
accepting labor services,
pay less cash
Mainly due to the current
construction of fixed
Net cash flow generated
-868,753,571.38 -1,388,185,769.88 -37.42% assets, intangible assets
by investment
and other long-term
assets to pay cash
Net cash flow generated Mainly because this issue
855,170,792.73 -2,532,199,491.79 133.77%
by financing loans increased
Mainly because of increa
sed business activities ge
nerated cash flow in curr
ent period, reduce invest
ment and financing activi
Net increasing of cash
2,765,662,683.48 -5,806,945,649.73 147.63% ties generated cash flow,
and cash equivalents
financing activities gener
ated cash flow net increa
se
Material changes in profit composition or sources
[] Applicable; [V] Not applicable
No change in profit composition or sources in the report period.
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Bengang Steel Plates Co., Ltd. Interim Report 2016
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
Change in
Gross profit Change in Change in gross
Turnover Operation cost operation cost
ratio % turnover YoY profit YoY
YoY
On Industries
11,890,962,256.2 10,286,817,465.0
Industry 13.49% -22.99% -27.16% 4.95%
8 0
On Products
11,738,675,777.0 10,158,667,070.8
Steel plate 13.46% -22.85% -27.12% 5.08%
1 3
Steel billet 152,557.88 136,038.91 10.83%
Others 152,133,921.39 128,014,355.26 15.85% -32.68% -30.28% -2.90%
On Area
Northeast 2,523,717,878.41 2,243,999,134.87 11.08% -25.79% -29.00% 4.01%
North 1,451,942,467.57 1,281,589,669.32 11.73% -31.53% -35.15% 4.91%
East 3,588,168,275.24 3,067,886,209.54 14.50% -26.13% -30.78% 5.74%
Northwest 29,082,546.35 25,641,579.90 11.83% -29.87% -32.43% 3.34%
Mid-south 685,433,798.17 602,828,614.43 12.05% 25.60% 20.57% 3.67%
Export 3,612,617,290.54 3,064,872,256.95 15.16% -19.25% -23.68% 4.92%
IV. Analyze of competitive edge
There was not any change to the core competition of the Company, and the Company was in normal operation.
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Bengang Steel Plates Co., Ltd. Interim Report 2016
V. Investment
1. External equity investment
(1) External investment
[] Applicable; [V] Not applicable
No external investment in the report period.
(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
[] Applicable; [V] Not applicable
No Trusted financing in the report period.
securities investment in the report period.
(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.
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Bengang Steel Plates Co., Ltd. Interim Report 2016
3. Using of proceeds from share placing.
[V] Applicable Not applicable
No using of proceeds from share placing in the report period.
4. Analyze of main subsidiaries and affiliates
[V] Applicable Not applicable
Profiles of main subsidiaries and affiliates
In RMB
Major
Name of Type of Registered Gross Operation
Industry products or Net asset Turnover Net profit
companies business capital Assets profit
service
Guangzhou
Bengang Steel rolling Sales of 1,000,000.0 194,366,00 68,512,192. 461,525,44 3,378,557
Subsidiaries 2,533,918.45
Trade Co., business steel 0 5.98 54 1.77 .91
Ltd.
Shanghai
Bengang Steel rolling Sales of 19,200,000. 460,283,71 146,068,04 1,387,045,4 4,964,610
Subsidiaries 3,870,246.37
Metallurgy business steel 00 2.95 7.13 99.96 .57
Tech. Ltd.
Bengang
Steel Plate
Steel rolling Production 10,000,000. 742,258,89 637,678,46 119,325,85 -5,539,54
Liaoyang Subsidiaries -5,539,542.34
business of pellet 00 6.92 0.86 4.35 2.34
Orel Ball
Co., Ltd.
Dalian
Benruitong
Processing 100,000,00 448,790,67 80,434,428. 137,623,37 -3,260,43
Automobile Steel rolling
Subsidiaries and sales of -3,127,791.12
Material business 0.00 9.59 17 3.15 7.37
steel
Technologie
s Co., Ltd.
Bengang
Puxiang
Processing 1,920,000,0 4,606,655,6 2,002,394,2 2,592,071,4 99,409,15 99,409,153.7
Cool Steel rolling
Subsidiaries and sales of
Rolling business 00.00 39.42 44.57 00.46 3.77 7
steel
Steel Sheet
Co., Ltd.
Changchun
Bengang Steel rolling Sales of 61,598,080. 15,303,275. 241,092,23 2,061,777
Subsidiaries 500,000.00 1,579,796.81
Steel Sales business steel 93 35 1.29 .29
Ltd.
Haerbin
Bengang 42,807,262. 3,336,257.2 75,505,324. 2,548,546
Steel rolling Sales of
Internationa Subsidiaries 500,000.00 2,573,881.10
business steel 33 7 31 .42
l Trading
Ltd.
Nanjing
Bengang 1,150,000.0 42,298,848. 30,079,139. 11,009,466. -355,267.
Steel rolling Sales of
Steel Subsidiaries -355,851.06
business steel 0 47 19 68 36
Material
Sales Ltd.
Wuxi
Bengang Steel rolling Sales of 1,000,000.0 142,135,16 19,722,095. 377,292,29 3,981,299
Subsidiaries 2,837,986.65
Steel Sales business steel 0 2.98 52 2.04 .24
Ltd.
Xiamen
Bengang Steel rolling Sales of 2,426,041.1 1,167,899.2 -628,025.
Subsidiaries 500,000.00 384,387.61
Steel Sales business steel 1 7 05
Ltd.
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Bengang Steel Plates Co., Ltd. Interim Report 2016
Yantai
Bengang Steel rolling Sales of 241,656,64 77,215,325. 574,548,21 3,041,484
Subsidiaries 500,000.00 2,281,113.71
Steel Sales business steel 1.18 92 8.66 .96
Ltd.
Tianjin
Bengang 3,000,000.0 112,983,54 16,250,530. 213,269,55 4,094,745
Steel rolling Sales of
Steel Subsidiaries 4,094,745.89
business steel 0 1.21 45 2.17 .89
Trading
Ltd.
Shenyang
BengangM
atellurgica Steel rolling Sales of 5,000,000.0 91,339,524. 3,814,655.4 273,109,44 -1,186,62
Subsidiaries -1,186,625.83
l business steel 0 26 2 7.13 5.84
Technolog
y Co., Ltd.
Benxi
Bengang Steel rolling Sales of 5,000,000.0 165,806,89 2,589,457.2 111,331,34 -2,250,61
Subsidiaries -2,411,335.18
Steel Sales business steel 0 9.60 5 4.35 6.89
Co., Ltd.
Suzhou
Bengang Shareholding Steel rolling Sales of 20,000,000. 60,881,715. 20,025,395. 101,339,77
21,115.74 -10,138.14
Industrial company business steel 00 36 48 1.53
Co., Ltd.
China Steel
Shanghai 89,042,954. 515,342,73 -1,085,383. 134,119,19 -9,711,84
Shareholding Steel rolling Sales of
Steel -9,990,008.02
company business steel 00 3.98 05 9.78 8.95
Processing
Co., Ltd.
Zhejiang
Bengang
Jingrui Shareholding Steel rolling Sales of 10,000,000. 89,131,082. 12,457,710. 99,793,311. 167,404.8
562,016.94
Steel company business steel 00 30 53 09 1
Processing
Ltd.
5. Major projects using non-raised capital
[V] Applicable Not applicable
In RMB0000
Amount Accumulation Investment Date of Index of
Planned Turnover of the
Projects invested this of actual input progress of the disclosure (if information
investment project
report term at end of period project any) disclosed
Cool rolling
high strength 610,000 87,664.19 432,835.47 70.00%
steel rebuilding
hot galvanizing
project of No.3
86,918 4,400.74 37,976.01 50.00%
hot rolling
factory
Environmental
reconstruction 177,864.4 1,191.5 16,513.91 90.00%
of converter
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Bengang Steel Plates Co., Ltd. Interim Report 2016
and the 180t
dephosphorizat
ion converter
360 M2
sintering 127,773.8 4,415.46 101,813.5 90.00%
machine
The new
energy control 28,410 1,207.19 23,745.77 95.00%
center project
Information
39,038 229.25 22,568.16 96.00%
system project
Total 1,070,004.2 99,108.33 635,452.82 -- -- -- --
VI. Business performance forecast for Jan-Sept 2016
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.
XI. Reception of investigations, communications, or interviews
The Company has no reception of research, communication and interview occurred in the Period.
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Bengang Steel Plates Co., Ltd. Interim Report 2016
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 2016
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
Principl
Amount Market Index
Subjects e of Exceede
Amount of trade price of of
of the pricing Ratio in d the Date of
Related Relation Type of Price of of trade approve Way of similar inform
related the similar approve disclosu
parties ship trade trade RMB0 d payment trade ation
transacti related trades d re
000 (RMb0 availabl disclos
ons transacti amount?
000) e ure
ons
Bengan Execute
Sales of
g Same Related accordin
goods Energy Agreem
Electric controll agreeme 50.64 0.00% 300 No g to the No
and Power ent
al Co., er nt price agreeme
services
Ltd. nt
Benxi
Beiying Execute
Sales of Raw
Steel & Same Related accordin
goods material Agreem
Iron controll agreeme 4,800.39 0.38% 150,000 No g to the No
and and ent
(Group) er nt price agreeme
services parts
Co., nt
Ltd.
Benxi
Beiying Execute
Sales of
Steel & Same Related accordin
goods Agreem
Iron controll Goods agreeme 220.01 0.02% No g to the Yes
and ent
(Group) er nt price agreeme
services
Co., nt
Ltd.
Benxi
Beiying Execute
Sales of
Steel & Same Related accordin
goods Energy Agreem
Iron controll agreeme 4,933.19 0.39% No g to the No
and Power ent
(Group) er nt price agreeme
services
Co., nt
Ltd.
Benxi Same Sales of Energy Agreem Related Execute
47.71 0.00% 1,000 No No
Steel controll goods Power ent agreeme accordin
17
Bengang Steel Plates Co., Ltd. Interim Report 2016
(Group) er and nt price g to the
Real-est services agreeme
ate nt
Develop
ment
Co.,
Ltd.
Benxi
Steel
(Group) Execute
Sales of
Steel Same Related accordin
goods Energy Agreem
Process controll agreeme 28.88 0.00% No g to the No
and Power ent
and er nt price agreeme
services
Logistic nt
s Co.,
Ltd.
Benxi
Steel
(Group) Execute
Sales of
Steel Same Related accordin
goods Agreem
Process controll Goods agreeme 4,200.09 0.33% 40,000 No g to the Yes
and ent
and er nt price agreeme
services
Logistic nt
s Co.,
Ltd.
Benxi
Execute
Steel Sales of
Same Related accordin
(Group) goods Agreem
controll Goods agreeme 605.32 0.05% No g to the Yes
Machine and ent
er nt price agreeme
ry Co., services
nt
Ltd.
Benxi
Execute
Steel Sales of
Same Related accordin
(Group) goods Energy Agreem
controll agreeme 917.91 0.07% 15,000 No g to the No
Machine and Power ent
er nt price agreeme
ry Co., services
nt
Ltd.
Benxi
Execute
Steel Sales of Raw
Same Related accordin
(Group) goods material Agreem
controll agreeme 151.46 0.01% No g to the No
Machine and and ent
er nt price agreeme
ry Co., services parts
nt
Ltd.
18
Bengang Steel Plates Co., Ltd. Interim Report 2016
Benxi
Steel Execute
Sales of
(Group) Same Related accordin
goods Energy Agreem
Constru controll agreeme 245.55 0.02% No g to the No
and Power ent
ction er nt price agreeme
services
Co., nt
Ltd.
Benxi
Steel Execute
Sales of Raw
(Group) Same Related accordin
goods material Agreem
Constru controll agreeme 4,056.35 0.32% 25,000 No g to the No
and and ent
ction er nt price agreeme
services parts
Co., nt
Ltd.
Benxi
Execute
Steel Sales of
Same Related accordin
(Group) goods Energy Agreem 36,147.9
controll agreeme 2.86% 100,000 No g to the No
Mining and Power ent 2
er nt price agreeme
Co., services
nt
Ltd.
Benxi
Execute
Steel Sales of Raw
Same Related accordin
(Group) goods material Agreem
controll agreeme 4,161.56 0.33% No g to the No
Mining and and ent
er nt price agreeme
Co., services parts
nt
Ltd.
Benxi
Execute
Steel Sales of
Same Related accordin
(Group) goods Freight Agreem
controll agreeme 436.25 0.03% No g to the No
Mining and income ent
er nt price agreeme
Co., services
nt
Ltd.
Benxi
Steel
(Group) Execute
Sales of
Thermal Same Related accordin
goods Energy Agreem
Power controll agreeme 1,959.85 0.16% 15,000 No g to the No
and Power ent
Develop er nt price agreeme
services
ment nt
Co.,
Ltd.
Benxi Same Sales of Raw Agreem Related 533.38 0.04% No Execute No
19
Bengang Steel Plates Co., Ltd. Interim Report 2016
Steel controll goods material ent agreeme accordin
(Group) er and and nt price g to the
Thermal services parts agreeme
Power nt
Develop
ment
Co.,
Ltd.
Benxi
Steel
(Group) Execute
Sales of
Thermal Same Related accordin
goods Freight Agreem
Power controll agreeme 8.28 0.00% No g to the No
and income ent
Develop er nt price agreeme
services
ment nt
Co.,
Ltd.
Benxi
Steel
(Group) Execute
Sales of
Industri Same Related accordin
goods Energy Agreem
al controll agreeme 331.64 0.03% No g to the No
and Power ent
Develop er nt price agreeme
services
ment nt
Co.,
Ltd.
Benxi
Steel
(Group) Execute
Sales of
Industri Same Related accordin
goods Agreem
al controll Goods agreeme 12.64 0.00% No g to the Yes
and ent
Develop er nt price agreeme
services
ment nt
Co.,
Ltd.
Benxi
Steel
Execute
(Group) Sales of Raw
Same Related accordin
Industri goods material Agreem
controll agreeme 2,814.4 0.22% 15,000 No g to the No
al and and ent
er nt price agreeme
Develop services parts
nt
ment
Co.,
20
Bengang Steel Plates Co., Ltd. Interim Report 2016
Ltd.
Benxi
Steel
(Group) Execute
Sales of
Informat Same Related accordin
goods Energy Agreem
ion & controll agreeme 10.07 0.00% 50 No g to the No
and Power ent
Automat er nt price agreeme
services
ic Tech. nt
Co.,
Ltd.
Benxi
Steel
Execute
(Group) Sales of
Same Related accordin
Constru goods Energy Agreem
controll agreeme 47.79 0.00% No g to the No
ction & and power ent
er nt price agreeme
Repairin services
nt
g Co.,
Ltd.
Benxi
Steel
Execute
(Group) Sales of Raw
Same Related accordin
Constru goods material Agreem
controll agreeme 114.14 0.01% 1,000 No g to the No
ction & and and ent
er nt price agreeme
Repairin services parts
nt
g Co.,
Ltd.
Benxi
Steel
Execute
(Group) Sales of
Same Related accordin
Metallur goods Energy Agreem
controll agreeme 105.61 0.01% No g to the No
gy and Power ent
er nt price agreeme
Residue services
nt
s Co.,
Ltd.
Benxi
Steel
Execute
(Group) Sales of Raw
Same Related accordin
Metallur goods material Agreem
controll agreeme 1,022.12 0.08% 10,000 No g to the No
gy and and ent
er nt price agreeme
Residue services parts
nt
s Co.,
Ltd.
21
Bengang Steel Plates Co., Ltd. Interim Report 2016
Benxi
Steel
Execute
(Group) Sales of
Same Related accordin
Metallur goods Freight Agreem
controll agreeme 0.43 0.00% No g to the No
gy and income ent
er nt price agreeme
Residue services
nt
s Co.,
Ltd.
Benxi
Steel
Execute
(Group) Sales of
Same Related accordin
Metallur goods Agreem
controll Goods agreeme 155.38 0.01% No g to the Yes
gy and ent
er nt price agreeme
Residue services
nt
s Co.,
Ltd.
Execute
Benxi Sales of
Parent Related accordin
Steel goods Energy Agreem
(Group) Compa agreeme 3,525.98 0.28% 15,000 No g to the No
Co., and Power ent
ny nt price agreeme
Ltd. services
nt
Execute
Benxi Sales of Raw
Parent Related accordin
Steel goods material Agreem
(Group) Compa agreeme 337.11 0.03% No g to the No
Co., and and ent
ny nt price agreeme
Ltd. services parts
nt
Benxi
Steel
New Execute
Sales of
Busines Same Related accordin
goods Energy Agreem
s controll agreeme 16.52 0.00% 500 No g to the No
and Power ent
Develop er nt price agreeme
services
ment nt
Co.,
Ltd.
Dalian Execute
Sales of
Boluole Same Related accordin
goods Agreem
Steel controll Goods agreeme 153.24 0.01% 1,000 No g to the Yes
and ent
Tube er nt price agreeme
services
Ltd. nt
Liaonin Same Sales of Agreem Related Execute
Goods 9,298.37 0.74% 40,000 No Yes
g controll goods ent agreeme accordin
22
Bengang Steel Plates Co., Ltd. Interim Report 2016
Bengan er and nt price g to the
g Steel services agreeme
& Iron nt
Trading
Co.,
Ltd.
Benxi Execute
Sales of
Steel & Same Related accordin
goods Energy Agreem
Iron controll agreeme 4.83 0.00% 100 No g to the No
and Power ent
Group er nt price agreeme
services
Hospital nt
Liaonin
g
Hengton Execute
Sales of
g Same Related accordin
goods Energy Agreem
Metallur controll agreeme 844.91 0.07% No g to the No
and Power ent
gy er nt price agreeme
services
Equipm nt
ent Co.,
Ltd.
Liaonin
g
Hengton Execute
Sales of Raw
g Same Related accordin
goods material Agreem
Metallur controll agreeme 651.49 0.05% 10,000 No g to the No
and and ent
gy er nt price agreeme
services parts
Equipm nt
ent Co.,
Ltd.
Liaonin
g
Hengton Execute
Sales of
g Same Related accordin
goods Agreem
Metallur controll Goods agreeme 810.93 0.06% No g to the No
and ent
gy er nt price agreeme
services
Equipm nt
ent Co.,
Ltd.
Bengan Execute
Sales of Raw
g Same Related accordin
goods material Agreem
Stainles controll agreeme 0 0.00% No g to the No
and and ent
s er nt price agreeme
services parts
Cool-rol nt
23
Bengang Steel Plates Co., Ltd. Interim Report 2016
ling
(Dandon
g) Co.,
Ltd.
Bengan
g
Stainles Execute
Sales of
s Same Related accordin
goods Agreem
Cool-rol controll Goods agreeme 0 0.00% 1,000 No g to the No
and ent
ling er nt price agreeme
services
(Dandon nt
g) Co.,
Ltd.
Suzhou
Execute
Bengan Sales of
Same Related accordin
g goods Agreem
controll Goods agreeme 9,698.5 0.77% 35,000 No g to the No
Industri and ent
er nt price agreeme
al Co., services
nt
Ltd.
Benxi
Execute
Steel Sales of
Same Related accordin
Group goods Energy Agreem
controll agreeme 0.82 0.00% 1,000 No g to the No
Finance and Power ent
er nt price agreeme
Co., services
nt
Ltd.
Benxi Execute
Sales of
Steel Related accordin
control goods Energy Agreem
(Group) agreeme 2.88 0.00% 500 No g to the No
person and power ent
Co., nt price agreeme
services
Ltd. nt
Benxi Purchas Execute
Steel Parent e of Related accordin
Repair Agreem 14,291.4
(Group) Compan goods agreeme 1.31% 32,000 No g to the No
service ent 8
Co., y and nt price agreeme
Ltd. services nt
Benxi Purchas Execute
Steel Parent e of Related accordin
land Agreem
(Group) Compan goods agreeme 2,825.72 0.26% No g to the No
rentals ent
Co., y and nt price agreeme
Ltd. services nt
Bengan Same Purchas Inventor Agreem Related Execute
19.79 0.00% 1,000 No No
g controll e of y ent agreeme accordin
24
Bengang Steel Plates Co., Ltd. Interim Report 2016
Stainles er goods nt price g to the
s and agreeme
Cool-rol services nt
ling
(Dandon
g) Co.,
Ltd.
Benxi
Purchas Execute
Steel
Same e of Related accordin
(Group) Labour Agreem
controll goods agreeme 801.23 0.07% No g to the No
Mining service ent
er and nt price agreeme
Co.,
services nt
Ltd.
Benxi
Purchas Execute
Steel
Same e of Related accordin
(Group) Raw Agreem
controll goods agreeme 193,052 17.69% 500,000 No g to the No
Mining material ent
er and nt price agreeme
Co.,
services nt
Ltd.
Benxi
Purchas Execute
Steel
Same e of Related accordin
(Group) Transpo Agreem
controll goods agreeme 144.26 0.01% No g to the No
Mining rtion ent
er and nt price agreeme
Co.,
services nt
Ltd.
Benxi
Steel
Purchas Execute
(Group)
Same e of Related accordin
Metallur Raw Agreem
controll goods agreeme 5,726.18 0.52% 20,000 No g to the No
gy material ent
er and nt price agreeme
Residue
services nt
s Co.,
Ltd.
Benxi
Steel
(Group) Purchas Execute
Steel Same e of Processi Related accordin
Agreem
Process controll goods ng agreeme 86.72 0.01% 800 No g to the No
ent
and er and charges nt price agreeme
Logistic services nt
s Co.,
Ltd.
25
Bengang Steel Plates Co., Ltd. Interim Report 2016
Benxi
Steel
(Group) Purchas Execute
Real-est Same e of Related accordin
Raw Agreem
ate controll goods agreeme 3,688.55 0.34% 8,000 No g to the No
material ent
Develop er and nt price agreeme
ment services nt
Co.,
Ltd.
Benxi
Purchas Execute
Steel
Same e of Related accordin
(Group) Spare Agreem
controll goods agreeme 5,420.19 0.50% 35,000 No g to the No
Machine parts ent
er and nt price agreeme
ry Co.,
services nt
Ltd.
Benxi
Purchas Execute
Steel
Same e of Related accordin
(Group) Repair Agreem
controll goods agreeme 530.24 0.05% No g to the No
Machine service ent
er and nt price agreeme
ry Co.,
services nt
Ltd.
Benxi
Steel Purchas Execute
(Group) Same e of Related accordin
Spare Agreem
Constru controll goods agreeme 763.59 0.07% No g to the No
parts ent
ction er and nt price agreeme
Co., services nt
Ltd.
Benxi
Steel Purchas Execute
(Group) Same e of Related accordin
Enginee Agreem 12,280.9
Constru controll goods agreeme 1.13% 80,000 No g to the No
ring ent 3
ction er and nt price agreeme
Co., services nt
Ltd.
Benxi
Steel Purchas Execute
(Group) Same e of Related accordin
Repair Agreem
Constru controll goods agreeme 4,193.07 0.38% No g to the No
service ent
ction er and nt price agreeme
Co., services nt
Ltd.
26
Bengang Steel Plates Co., Ltd. Interim Report 2016
Benxi
Steel Purchas Execute
(Group) Same e of Related accordin
Raw Agreem
Constru controll goods agreeme 372.62 0.03% No g to the No
material ent
ction er and nt price agreeme
Co., services nt
Ltd.
Benxi
Steel Purchas Execute
(Group) Same e of Related accordin
Transpo Agreem
Constru controll goods agreeme 139.28 0.01% No g to the No
rtion ent
ction er and nt price agreeme
Co., services nt
Ltd.
Benxi
Steel
(Group) Purchas Execute
Industri Same e of Related accordin
Spare Agreem
al controll goods agreeme 1,209.81 0.11% No g to the No
parts ent
Develop er and nt price agreeme
ment services nt
Co.,
Ltd.
Benxi
Steel
(Group) Purchas Execute
Industri Same e of Related accordin
Agreem 11,814.0
al controll goods agreeme 1.08% 40,000 No g to the No
ent 4
Develop er and nt price agreeme
ment services nt
Co.,
Ltd.
Benxi
Steel
(Group) Purchas Execute
Industri Same e of Related accordin
Repair Agreem
al controll goods agreeme 700.44 0.06% No g to the No
service ent
Develop er and nt price agreeme
ment services nt
Co.,
Ltd.
Benxi Same Purchas Related Execute
Transpo Agreem 287.04 0.03% No No
Steel controll e of agreeme accordin
27
Bengang Steel Plates Co., Ltd. Interim Report 2016
(Group) er goods rtion ent nt price g to the
Industri and agreeme
al services nt
Develop
ment
Co.,
Ltd.
Benxi
Steel
(Group) Purchas Execute
Industri Same e of Related accordin
Enginee Agreem
al controll goods agreeme 63.01 0.01% No g to the No
ring ent
Develop er and nt price agreeme
ment services nt
Co.,
Ltd.
Benxi
Steel
Purchas Execute
(Group) Raw
Same e of Related accordin
Constru material Agreem
controll goods agreeme 413.14 0.04% 25,000 No g to the No
ction & and ent
er and nt price agreeme
Repairin parts
services nt
g Co.,
Ltd.
Benxi
Steel
Purchas Execute
(Group)
Same e of Related accordin
Constru Enginee Agreem
controll goods agreeme 2,816.62 0.26% No g to the No
ction & ring ent
er and nt price agreeme
Repairin
services nt
g Co.,
Ltd.
Benxi
Steel
Purchas Execute
(Group)
Same e of Related accordin
Constru Agreem
controll goods Repair agreeme 2,066.02 0.19% No g to the No
ction & ent
er and nt price agreeme
Repairin
services nt
g Co.,
Ltd.
Bengan Same Purchas Related Execute
Raw Agreem
g controll e of agreeme 5,393.9 0.49% 20,000 No accordin No
material ent
Electric er goods nt price g to the
28
Bengang Steel Plates Co., Ltd. Interim Report 2016
al Co., and agreeme
Ltd. services nt
Bengan Purchas Execute
g Same e of Related accordin
Enginee Agreem
Electric controll goods agreeme 142.96 0.01% No g to the No
ring ent
al Co., er and nt price agreeme
Ltd. services nt
Bengan Purchas Execute
g Same e of Related accordin
Repair Agreem
Electric controll goods agreeme 442.75 0.04% No g to the No
service ent
al Co., er and nt price agreeme
Ltd. services nt
Benxi
High &
New Purchas Execute
Drilling Same e of Related accordin
Spare Agreem
Tool controll goods agreeme 26.3 0.00% 1,000 No g to the No
parts ent
Manufa er and nt price agreeme
cturing services nt
Co.,
Ltd.
Benxi
Steel
New Purchas Execute
Busines Same e of Labor Related accordin
Agreem
s controll goods protecti agreeme 118.36 0.01% 1,200 No g to the No
ent
Develop er and on nt price agreeme
ment services nt
Co.,
Ltd.
Liaonin
Purchas Execute
g
College Same e of Related accordin
of Spare Agreem
controll goods agreeme 706.55 0.06% 1,500 No g to the No
Metallur parts ent
gy er and nt price agreeme
Technol
services nt
ogies
Bengan
g Purchas Execute
Group ,I Same e of Related accordin
Agent Agreem
nternati controll goods agreeme 2,851.32 0.26% No g to the No
fee ent
onal er and nt price agreeme
Econom services nt
ic Trade
29
Bengang Steel Plates Co., Ltd. Interim Report 2016
Co.,
Ltd.
Bengan
g
Group ,I Purchas Execute
nternati Same e of Related accordin
Surchar Agreem 10,301.6
onal controll goods agreeme 0.94% 35,000 No g to the No
ge ent 5
Econom er and nt price agreeme
ic Trade services nt
Co.,
Ltd.
Benxi
Steel
Purchas Execute
(Group)
Same e of Related accordin
Informat Spare Agreem
controll goods agreeme 1,430.02 0.13% No g to the No
ion parts ent
er and nt price agreeme
Automat
services nt
ion
Co.,Ltd.
Benxi
Steel
Purchas Execute
(Group)
Same e of Related accordin
Informat Repair Agreem
controll goods agreeme 1,180.9 0.11% 7,000 No g to the No
ion service ent
er and nt price agreeme
Automat
services nt
ion
Co.,Ltd.
Benxi
Steel
Purchas Execute
(Group)
Same e of Related accordin
Thermal Heating Agreem
controll goods agreeme 627.4 0.06% 2,000 No g to the No
Power costs ent
er and nt price agreeme
Develop
services nt
ment
Co., Ltd
Benxi
Steel
Purchas Execute
(Group)
Same e of Related accordin
Thermal raw Agreem
controll goods agreeme 3.38 0.00% No g to the No
Power material ent
er and nt price agreeme
Develop
services nt
ment
Co., Ltd
30
Bengang Steel Plates Co., Ltd. Interim Report 2016
Benxi
Purchas Execute
Steel
Same e of Related accordin
(Group) Design Agreem
controll goods agreeme 446.34 0.04% 5,000 No g to the No
Designi fee ent
er and nt price agreeme
ng
services nt
Institute
Benxi
Beiying Purchas Execute
Steel & Same e of Related accordin
raw Agreem 277,525.
Iron controll goods agreeme 25.43% No g to the No
material ent 66
(Group) er and nt price agreeme
Co., services nt
Ltd.
Benxi
Beiying Purchas Execute
Steel & Same e of Related accordin
Energy Agreem 18,687.3
Iron controll goods agreeme 1.71% 800,000 No g to the No
Power ent 7
(Group) er and nt price agreeme
Co., services nt
Ltd.
Benxi
Beiying Purchas Execute
Steel & Same e of Related accordin
Transpo Agreem
Iron controll goods agreeme 391.03 0.04% No g to the No
rtation ent
(Group) er and nt price agreeme
Co., services nt
Ltd.
Benxi
Beiying Purchas Execute
Steel & Same e of Related accordin
Agreem
Iron controll goods Services agreeme 2,698.85 0.25% No g to the No
ent
(Group) er and nt price agreeme
Co., services nt
Ltd.
Benxi
Beiying Purchas Execute
Steel & Same e of Related accordin
Spare Agreem
Iron controll goods agreeme 554.63 0.05% No g to the No
parts ent
(Group) er and nt price agreeme
Co., services nt
Ltd.
Liaonin Same Purchas Raw Agreem Related 4,045.09 0.37% 15,000 No Execute No
31
Bengang Steel Plates Co., Ltd. Interim Report 2016
g controll e of material ent agreeme accordin
Hengton er goods s and nt price g to the
g and spare agreeme
Metallur services parts nt
gy
Equipm
ent Co.,
Ltd.
Liaonin
g Purchas Raw Execute
Hengtai Same e of material Related accordin
Agreem
Heavy controll goods s and agreeme 334.8 0.03% 6,000 No g to the No
ent
Machine er and spare nt price agreeme
Co., services parts nt
Ltd.
Liaonin
g Purchas Execute
Hengtai Same e of Repair Related accordin
Agreem
Heavy controll goods and agreeme 759.49 0.07% No g to the No
ent
Machine er and service nt price agreeme
Co., services nt
Ltd.
Benxi Purchas Execute
Steel e of Property Related accordin
control Agreem
(Group) goods manage agreeme 42.28 0.00% 1,000 No g to the No
person ent
Co., and ment fee nt price agreeme
Ltd. services nt
685,881. 2,112,95
Total -- -- -- -- -- -- -- --
54 0
Details of any sales return of a large
None
amount
Give the actual situation in the report
period where a forecast had been
made for the total amounts of routine None
related-party transactions by type to
occur in the current period(if any)
Reason for any significant difference
between the transaction price and the None
market refernce price (if applicable)
32
Bengang Steel Plates Co., Ltd. Interim Report 2016
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
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.
33
Bengang Steel Plates Co., Ltd. Interim Report 2016
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.
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 2016 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. Explanation about other significant matters
[] Applicable; [V] Not applicable
There was no any other significant matter needed to be exelpained in the report period
34
Bengang Steel Plates Co., Ltd. Interim Report 2016
XV. Information about the corporate bonds
Whether the listed company failed to honor the corporate bonds public issued and listed on the Stock Exchange in
due or undue at the approval date of the annual report
Yes
1.Basic information of corporate bonds
Bond short Bond balance
Bond name Bond code Issue day Due day Interest rate Servicing way
name 0000
Comporaton Due payments
Bond 2015 15 Benxi Steel February February once a year,
112236 150,000 5.17%
（The 1st 01 5,2015 5,2018 maturing debt
Phase） at a time.
Corporate bonds listed or
Shenzhen Stock Exchange
trading places
Investors appropriate The above mentioned bond trading will be implemented Investors Management
arrangement
The interests of the 2015-corporate bonds (first term) of Bengang Steel Plates Co., Ltd of the
period from February 5, 2015 to February 4, 2016 were paid on February 5, 2016 as each bond
During the reporting period,
would gain RMB 5.17 (tax inclusive). The Record Day of the interest payment period of the bonds
interest payment situation of the
was February 4, 2016, thus any investor who buys and holds the bonds before or on the date of
company bonds
February 4, 2016 shall enjoy the right to receive the interest payments. The investors who sold out
the bonds on the date of February 4, 2016 shall not enjoy the interests afore-said.
If the corporate bonds attached
to special clauses to the issuer
or the investors such as option
clause and exchangeable clause,
Not applicable
please specify the
implementation status of the
corresponding clauses. (If
applicable)
2.Bond trustee and the credit rating agency information
Bond trustee：
A02 28/F,
35/F, Anlian
ESSENCE Tian Zhu, Zhou
Name Office address Building , Contact Tel 010-83321219
Securities Hao
No.4018.
Jintian Road,
35
Bengang Steel Plates Co., Ltd. Interim Report 2016
Futian
District,
Shenzhen.
The credit rating agencies which follow and rate the corporate bond during the reporting period
12/F, PICC Building, No.Jianguo Menwai
Name United Ratings Co., Ltd. Office address
Street, Chaoyang District, Beijing.
During the report period, the bond trustee,
credit rating agency employed by the
company that have changed, reasons for
Not applicable
the change, performing procedures,
relevant influence on investors,etc(If
applicable).
3.The usage of corporate bonds to raise money
After deducting corporate bond issuance costs, all the funds raised for debt restructurin
The usage and performance of raised funds
g, debt repayment, the amount of repayment of bank borrowings was 1.5 billion yuan,
from Corporate bonds
as of December 31, 2015, all the funds raised have been used up.
At the end of balance (ten thousand) 0
Raise money for special account operation Normal
Whether the usage of the raised money
corresponding to the purposes of promise, Unanimous
use plans , and other agreement
4. Corporate bond rating information
According to the supervision department and united rating agencys relevant requirements on tracking rating, the
united rating agency will, in the duration of this bond, exercise a regular tracking rating for the bonds 2015 (first
session) of Benxi Iron& Steel (Group) Co., Ltd. in 2 months upon publication of its annual report and will process
irregular tracking rating as appropriate. Investors, please pay attention to that.
On June 28, 2016, the combined rating report of Bengang Steel Plates Co., Ltds company bond of 2016 tracking
and rating report maintained “AA+” credit for the main bodys long-term credit rating, with a negative outlook;
meanwhile, the debt credit rating for “15-Bengang 01” was down to “AA+”.
Notes: the company shall disclose the time (expected), results and disclosure place of the latest rating of the
companys bond done by the rating agency with in accordance with the rating report.
During the reporting period, if the credit rating agency carried out irregularly scheduled tracking and rating on the
companys bond, the company shall disclose the information of such tracking and rating, including but not limited
to the rating agency, time of the rating report issued, the rating results and representative meanings of the marks,
and stressing the description of the comparison with the last rating results. If the rating was changed, the company
shall disclose the impacts of such change to the investors appropriateness.
During the reporting period, when the rating agency carried out the main-body credit rating due to the companys
36
Bengang Steel Plates Co., Ltd. Interim Report 2016
issuing of another bond and/or bond financing instruments in China, whether there were differences of the rating
shall be disclosed.
5.Corporate bond credit mechanism, the debt repayment plans and other security measures
During the reporting period, corporate bonds to increase trust mechanism, debt repayment plans and other safegua
rds has not changed. Bengang Group Co., Ltd. for the company's bond guarantor, as of the reporting period, Beng
ang Group's net assets 34.850 billion yuan, asset-liability ratio 74.98%, ROE -2.87% Current Ratio 0.45 Quick Ra
tio 0.27 (or more financial unaudited data). Bengangeel Group Joint Credit Rating Co. The rating is AAA.
Notes: during the reporting period, if there were variations of the companys bond credit-heightening
mechanism, repayment plan and other safeguard measures for the repayment to the bond, the explanation of such
variations shall made in accordance with the related provisions pertaining to the credit-heightening mechanism,
repayment plan and other safeguard measures for the repayment to the bond in the fifth section of the Prospectus
of the Public Issuance of the Company Bond-The No.23 Guideline for the Contents and the Format for Disclosure
of the Companys Information on the Public Issuance of the Company Bond, as well as including whether such
variation was approved by the authorized institution and the impacts on the bondholders interests caused by such
variation.
If the corporate credit enhancement mechanism, debt repayment plan and other debt repayment safeguard
measures havent changed, the company shall disclose the execution, changes of credit enhancement mechanism,
debt repayment plan and other debt repayment safeguard measures, as well as the influence of related changes on
the bondholders benefits: (1) if the guarantor that provides surety bond is, for instance, a legal representative or
other organization, the company shall disclose the guarantors main financial indicators at the end of report period,
such as net asset,asset-liability ratio, net assets income rate, liquidity ratio and quick ratio (it shall be marked
whether the related financial report has been audited) at the end of report period, as well as the guarantors credit
status, accumulative external security balance and the ratio of accumulative external security balance vs net asset;
if the guarantor is a natural person, the company shall disclose its credit status, compensatory ability, asset
limitation, external security and the other information that may influence the actualization of guarantee right; if
the guarantor is an issuer controlling shareholder or actual controller, the company shall disclose the guarantors
other assets except the issuers stock equity, right limitation of the assets and clarify if there is any subsequent
right limitations.The company shall highlight the difference between the disclosure of guarantor this year and that
last year (or prospectus). (2) if the guarantor provides mortgage or pledge as the guarantee, the company shall
disclose the changes to the value of guaranty (book value and assessed value, the time of assessment shall be
marked ), total balance of guaranteed debt, order of mortgage/pledge, as well as the assessment, registration,
custody, etc. of guarantee during the report period. (3) if the guarantor uses other means to enhance its credit, the
company shall disclose the changes to the related credit enhancement measures during the report period. (4) if the
company formulates debt repayment plan or takes other debt repayment safeguard measures, it shall disclose the
execution of related plans and measures during the report period and clarify if they are consistent with the relevant
commitment as prescribed in the prospectus, etc. (5) if the company sets up a specialized debt repayment accounts,
it shall disclose the withdrawal of assets in the account and clarify if its consistent with the relevant commitment
as prescribed in the prospectus, etc..
37
Bengang Steel Plates Co., Ltd. Interim Report 2016
6.During the reporting period the bondholder meeting
During the reporting period, the company did not hold bondholders meeting.
7.During the reporting period the bond trustee perform his duties
During the report period, the bond trustee performs its responsibilities in accordance with the regulations in
Corporate Bond Issuance and Transaction Management Method and commitment in Bond Trustee Agreement:
(I) Constantly pay attention to the credit status, execution of credit enhancement measurements and credit
repayment safeguard measures of the guarantor and company;
(II) Supervise the utilization of raised funds in the company during the duration of bond;
(III) exercise a well-rounded investigation into and pay constant attention to the companys debt repayment ability
and credit enhancement measures, and provide at least one trustee affair report for the market each year;
(IV) constantly supervise the companys performance of information disclosure obligation during the duration of
the bond.
The trustee hasnt been confronted with conflict of interest in performing its responsibilities.
The trustee is predicted to announce the trustee affair report 2015 on the website of Shenzhen Stock Exchange
before June 30, 2016.
8.During the reporting period, the company's major accounting data and financial indicators for last 2
years
In RMB0000
Items June 30, 2016 June 30,2015 At the same time rate of change
liquidity ratio 0.68% 0.61% 0.07%
Asset-liability ratio 73.75% 72.02% 1.73%
Quick action ratio 0.38% 0.32% 0.06%
This report term Same period last year Increase/decrease (%)
EBITDA multiple of interest
3.62 2.8 29.29%
safeguard
loan payment rate 100.00% 100.00% 0.00%
Interest rate of pay 100.00% 100.00% 0.00%
The net cash flow generated by
-86,875.36 -138,818.58 -37.42%
investment activities
The net cash flow generated by
85,517.08 -253,219.95 133.77%
financing activities
The final cash and balance of
276,566.27 -580,694.56 147.63%
cash equivalents
EBITDA 188,491.26 164,615.53 14.50%
The multiple of interest 1.43 0.97 46.47%
38
Bengang Steel Plates Co., Ltd. Interim Report 2016
safeguard
The main reason that the accounting data and financial indicators yoy change more than 30%
√Applicable □ Not applicable
The main reasons for the above accounting data and financial indicators of the corporate bonds varied more than
30% year on year
1. The net cash flow generated by investment activities decreased by 37.42% in the period than that of last year，
The main reason was the decrease of cash payments for the purchasing of fixed assets, intangible assets and other
long-term assets in the current period
2. The net cash flow generated by financing activities increased by 133.77%% in the period than that of last year，
The main reason was the increase of loan repayment in the current period.
3. The final cash and balance of cash equivalents increased by 147.63% in the period than that of last year，The
main reason was due to the cash received in the sale of goods and the rendering of service increased, the cash
payments for the purchasing of fixed assets, intangible assets and other long-term assets increased and the net
borrowing decreased in the current period compared with the last year.
9. Property rights limits by the end of report period
Items Book balue at the end of this year Limited reason
Monetary fund 390,764,251.47 For the issuance of notes payable and the
purchase of foreign exchange
Notes receivable 77,311,374.1 Notes payable
Inventories
Fixed assets 28,440,000.00 Mortgage loan
Intangible assets
Account receivable and Order 1,102,740,000.00 Loans
Total 2,292,255,625.57
10.During the report period interest payment for other bonds and debt financing tool
□ Applicable √ Not applicable
None
11.During the report period interest payment for other bonds and debt financing tool
None
12.During the report period obtain bank credit, its use situation and repayment of bank loans
During the report period, the total bank credit amount of the company is 35.68 billion yuan, and 27.49 billion
yuan has been utilized, with the unused line of credit of 8.19 billion yuan. The total loan amount at the beginning
is 20.58 billion yuan, and a loan of 6.343 billion yuan is added in this period. And the loan repaid is 5.736 billion
yuan, with the loan balance at the ending of 21.187 billion yuan.
39
Bengang Steel Plates Co., Ltd. Interim Report 2016
13.During the reporting period the situation of performing the related agreement or commitment in the
corporate bond prospectus
The company strictly observes the Bond Trustee Agreement and regulations as described in different bond terms
and conditions, and fulfills its promises.
14.Major events occurring in the period of report
On June 28, 2016, the combined rating report of Bengang Steel Plates Co., Ltd’s company bond of 2016
tracking and rating report maintained “AA+” credit for the main bodys long-term credit rating, with a negative
outlook; meanwhile, the debt credit rating for “15-Bengang 01” was down to “AA+”.
15.Whether there is a guarantor corporate bonds
√ Yes □No
The guarantor of the corporate bond is a legal person or othe rorganizations
√ Yes □No
Whether to disclosethe guarantors financial statements during the reporting period, including the balance sheet,
income statement, the cash flow statement, statement of changes in owners equity(shareholders equity) and the
notes to financial statements
□ Yes √No
The company shall provide the guarantors financial statement(mark whether it has been audited) during the report
period.
VI. Change of share capital and shareholding of Principal
Shareholders
Ⅰ.Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalizat
ion of
Share Bonus Proportio
common Other Subtotal Quantity
allotment shares n
reserve
fund
40
Bengang Steel Plates Co., Ltd. Interim Report 2016
II. Shares without trading 3,136,000, 3,136,000
100.00% 100.00%
limited conditions 000 ,000
2,736,000, 2,736,000
1. Common shares in RMB 87.24% 87.24%
000 ,000
2. Foreign shares in domestic 400,000,0 400,000,0
12.76% 12.76%
market 00 00
3,136,000, 3,136,000
III. Total of capital shares 100.00% 100.00%
000 ,000
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
In Shares
Total of shareholders of
Total common shareholders at preference shares with restored
52,560 0
the end of the report period voting power at end of report
period (if any) (See Note 8)
Shareholding status of top 10 shareholders or holding over 5% of the Companys shares
Amount Frozen or pledged
of Condition
Unconditio
Share common Changed in al shares
Name of the Properties of nal shares
proportion shares the report held at Status of
shareholder shareholder held at end Amount
% held at period end of shares
of period
end of period
period
Benxi Steel 2,445,116 2,445,116,0
State-owned legal
(Group) Co., 77.97% -12,444,909
person ,069 69
Ltd.
Domestic natural 12,912,88
Li Guoquan 0.41% 12,912,885
person 5
41
Bengang Steel Plates Co., Ltd. Interim Report 2016
BBH A/C
VANGUARD
EMERGING Overseas legal
0.26% 8,157,311 8,157,311
MARKETS person
STOCK
INDEX FUND
Domestic natural
Zhou Jie 0.18% 5,800,000 5,800,000
person
Shanxi
International
Trust Co.,
Ltd.－
Other 0.18% 5,537,433 5,537,433
Yongchang 2
Securities
investment
Trust Plan
Zhan Domestic natural
0.15% 4,660,515 4,660,515
Changcheng person
VANGUARD
TOTAL
Overseas legal
INTERNATIO 0.15% 4,606,141 4,606,141
person
NAL STOCK
INDEX FUND
Domestic natural
Xie Fuguang 0.14% 4,387,901 4,387,901
person
Shanghai
Wuniu
Domestic non-
Zhengzhun
State-owned legal 0.13% 4,069,400 4,069,400
Investment
person
Center( Limited
Partnership)
Domestic natural
Luo Meng 0.12% 3,797,050 3,797,050
person
Strategic investors or ordinary legal
persons became among the top 10
shareholders due to placing of new None
shares (if any)
(see Note 3)
Notes to relationship or “action in It is unknown to the Company whether there is any related connection or Action in Concert
concert” among the top ten as described by Rules of Information Disclosing Regarding Changing of Shareholding Status
shareholders. of Listed Companies existing among the above shareholders.
Top 10 Holders of Unrestricted Shares
Category of shares
Unconditional common shares held at end of report
Name of the shareholder Category of
period Amount
shares
42
Bengang Steel Plates Co., Ltd. Interim Report 2016
RMB common
Benxi Steel (Group) Ltd. 2,445,116,069 2,445,116,069
shares
RMB common
Li Guoquan 12,912,885 12,912,885
shares
Foreign shares
BBH A/C VANGUARD
placed in
EMERGING MARKETS STOCK 8,157,311 8,157,311
domestic
INDEX FUND
exchange
Foreign shares
placed in
Zhou Jie 5,800,000 5,800,000
domestic
exchange
Shanxi International Trust Co.,
RMB common
Ltd.－Yongchang 2 Securities 5,537,433 5,537,433
shares
investment Trust Plan
Foreign shares
placed in
Zhan Changcheng 4,660,515 4,660,515
domestic
exchange
Foreign shares
VANGUARD TOTAL
placed in
INTERNATIONAL STOCK 4,606,141 4,606,141
domestic
INDEX FUND
exchange
RMB common
Xie Fuguang 4,387,901 4,387,901
shares
Shanghai Wuniu Zhengzhun
RMB common
Investment Center( Limited 4,069,400 4,069,400
shares
Partnership)
RMB common
Luo Meng 3,797,050 3,797,050
shares
Benxi Steel & Iron (Group) Co., Ltd., the holding shareholder, has no relationship with any of
the other shareholders among the top 10 shareholders, neither being regarded as
Action-in-concert among top 10 action-in-concert parties by the Information Disclosure Regulations for Change of
non-restricted current share holders, Shareholding in PLC The Company is not aware of any relationship among the other
top 10 non-restricted current share shareholders, nor of any action-in-concert as recognized according to the Information
holders and top 10 shareholders 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 Shanghai Wuniu Zhengzhun Investment Center( Limited Partnership)holds 63,200 A shares
participating in securities margin through ordinary stock account , and holds 4,006,200 shares of the Company through
trading (if any) (see Note 4) guaranteed stock account. Total holdings of 4,069,400 shares.
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
43
Bengang Steel Plates Co., Ltd. Interim Report 2016
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.
44
Bengang Steel Plates Co., Ltd. Interim Report 2016
Chapter VII. Particulars about Preference Shares
[] Applicable; [V] Not applicable
No preference shares in the Company.
45
Bengang Steel Plates Co., Ltd. Interim Report 2016
Chapter VIII. Particulars about the Directors, Supervisors and Senior
Executives
I. Change of shareholding of directors, supervisors and senior executives
□ Applicable √ Not applicable
No Change in shareholding of Directors, Supervisors and Senior Management staffs, with the details in 2015
annual Report.
II. Changes in Directors, supervisors, and executives
□ Applicable √ Not applicable
No change in Directors, Supervisors and Senior Management staffs, with the details in 2015 annual Report.
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, 2016
In RMB
Items Closing balance Opening balance
Current asset：
Monetary fund 7,772,079,707.93 5,140,480,509.97
Settlement provision
Outgoing call loan
46
Bengang Steel Plates Co., Ltd. Interim Report 2016
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable 2,540,306,429.25 2,449,682,561.16
Account receivable 452,703,991.36 488,584,624.72
Prepayments 494,833,423.98 569,851,950.69
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable 2,487,392.36 3,524,615.12
Dividend receivable
Other account receivable 138,976,445.68 151,668,877.26
Repurchasing of financial assets
Inventories 9,504,612,643.59 8,601,734,442.42
Assets held for sales
Non-current asset due in 1 year
Other current asset 367,732,441.06 431,360,541.21
Total of current assets 21,273,732,475.21 17,836,888,122.55
Non-current assets：
Loans and payment on others behalf
disbursed
Disposable financial asset 20,271,278.63 20,271,278.63
Expired investment in possess
Long-term receivable
Long term share equity investment
Property investment
Fixed assets 19,085,082,253.61 20,046,254,726.74
Construction in progress 7,037,486,548.61 5,646,624,293.27
Engineering material 4,134,140.45 4,152,880.79
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 262,551,383.99 265,520,912.57
47
Bengang Steel Plates Co., Ltd. Interim Report 2016
R & D petrol
Goodwill
Long-germ expenses to be amortized
Differed income tax asset 505,818,614.43 641,931,130.78
Other non-current asset
Total of non-current assets 26,915,344,219.72 26,624,755,222.78
Total of assets 48,189,076,694.93 44,461,643,345.33
Current liabilities
Short-term loans 18,182,664,879.48 18,139,885,596.60
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable 1,880,570,032.85 2,110,511,950.79
Account payable 7,539,087,877.00 5,015,900,664.47
Advance payment 2,482,940,910.75 1,815,443,452.05
Selling of repurchased financial assets
Fees and commissions receivable
Employees wage payable 44,413,950.37 36,455,143.76
Tax payable 69,148,349.76 45,194,528.35
Interest payable 31,507,997.18 70,958,686.96
Dividend payable
Other account payable 413,970,937.59 444,734,704.90
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year 716,494,852.00 1,434,004,649.14
Other current liability
Total of current liability 31,360,799,786.98 29,113,089,377.02
Non-current liabilities：
48
Bengang Steel Plates Co., Ltd. Interim Report 2016
Long-term loan 2,288,189,324.24 1,005,919,974.09
Bond payable 1,492,278,859.13 1,490,352,572.75
Including：preferred stock
Sustainable debt
Long-term payable
Long-term payable employeess
remuneration
Special payable
Expected liabilities
Deferred income 396,566,000.00 413,188,000.00
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities 4,177,034,183.37 2,909,460,546.84
Total of liability 35,537,833,970.35 32,022,549,923.86
Owners equity
Share capital 3,136,000,000.00 3,136,000,000.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 9,114,845,542.05 9,114,845,542.05
Less：Shares in stock
Other comprehensive income
Special reserves 6,246,937.29 393,372.05
Surplus reserves 961,105,529.85 961,105,529.85
Common risk provision
Undistributed profit -1,095,705,895.61 -1,278,244,071.93
Total of owners equity belong to the
12,122,492,113.58 11,934,100,372.02
parent company
Minority shareholders equity 528,750,611.00 504,993,049.45
Total of owners equity 12,651,242,724.58 12,439,093,421.47
Total of liabilities and owners equity 48,189,076,694.93 44,461,643,345.33
Legal Representative: Zhao Zhongmin Person in charge of accounting:Han Ge Accounting Dept Leader:Wang
Shaoyu
49
Bengang Steel Plates Co., Ltd. Interim Report 2016
2. Balance sheet of Parent Company
In RMB
Items Closing balance Opening balance
Current asset：
Monetary fund 7,495,186,376.31 4,921,089,319.57
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable 2,363,362,218.11 2,298,691,410.40
Account receivable 393,818,335.43 449,193,422.02
Prepayments 494,240,335.58 549,553,039.03
Interest receivable 2,487,392.36 3,524,615.12
Dividend receivable
Other account receivable 191,320,596.03 229,428,159.94
Inventories 8,181,137,776.80 7,452,873,949.34
Assets held for sales
Non-current asset due in 1 year
Other current asset 295,681,413.80 387,259,423.54
Total of current assets 19,417,234,444.42 16,291,613,338.96
Non-current assets：
Disposable financial asset 18,303,673.00 18,303,673.00
Expired investment in possess
Long-term receivable
Long term share equity investment 1,700,981,902.16 1,700,981,902.16
Property investment
Fixed assets 16,387,345,202.32 17,179,043,906.45
Construction in progress 7,035,954,334.41 5,646,077,292.11
Engineering material 4,134,140.45 4,134,138.91
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 157,041,521.18 158,694,589.82
R & D petrol
50
Bengang Steel Plates Co., Ltd. Interim Report 2016
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 423,981,359.35 562,072,018.42
Other non-current asset
Total of non-current assets 25,727,742,132.87 25,269,307,520.87
Total of assets 45,144,976,577.29 41,560,920,859.83
Current liabilities
Short-term loans 16,699,935,600.00 16,798,213,600.00
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable 1,476,420,032.85 1,651,808,822.92
Account payable 7,793,364,619.26 5,263,012,477.37
Advance payment 2,592,368,207.29 1,957,484,054.73
Employees wage payable 43,654,751.97 34,194,188.88
Tax payable 54,420,336.72 9,986,022.56
Interest payable 31,334,821.13 70,113,698.63
Dividend payable
Other account payable 333,293,865.03 324,906,037.82
Liabilities held for sales
Non-current liability due in 1 year 716,494,852.00 1,434,004,649.14
Other current liability
Total of current liability 29,741,287,086.25 27,543,723,552.05
Non-current liabilities：
Long-term loan 2,288,189,324.24 1,005,919,974.09
Bond payable 1,492,278,859.13 1,490,352,572.75
Including：preferred stock
Sustainable debt
Long-term payable
Employees wage payable
Special payable
Expected liabilities
Deferred income 396,566,000.00 413,188,000.00
Deferred income tax liability
51
Bengang Steel Plates Co., Ltd. Interim Report 2016
Other non-current liabilities
Total of Non-current liabilities 4,177,034,183.37 2,909,460,546.84
Total of liability 33,918,321,269.62 30,453,184,098.89
Owners equity
Share capital 3,136,000,000.00 3,136,000,000.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 8,694,693,859.93 8,694,693,859.93
Less：Shares in stock
Other comprehensive income
Special reserves 6,246,937.29 393,372.05
Surplus reserves 961,105,529.85 961,105,529.85
Undistributed profit -1,571,391,019.40 -1,684,456,000.89
Total of owners equity 11,226,655,307.67 11,107,736,760.94
Total of liabilities and owners equity 45,144,976,577.29 41,560,920,859.83
3.Consolidated Income Statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 12,629,584,569.35 16,344,915,161.18
Incl：Business income 12,629,584,569.35 16,344,915,161.18
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 12,307,317,804.75 16,230,495,677.88
Incl：Business cost 10,914,182,302.04 14,901,549,350.57
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
52
Bengang Steel Plates Co., Ltd. Interim Report 2016
Reinsurance expenses
Business tax and surcharge 26,332,894.76 31,110,527.33
Sales expense 430,061,063.14 478,349,279.14
Administrative expense 351,954,718.48 377,591,047.45
Financial expenses 586,667,825.19 391,399,627.37
Asset impairment loss -1,880,998.86 50,495,846.02
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 6,584,315.11
Incl: investment gains from affiliates
Gains from currency exchange（“-”for
loss）
III. Operational profit（“-”for loss） 322,266,764.60 121,003,798.41
Add ：Non-operational income 24,196,669.55 42,223,004.46
Including：Income from disposal of
2,120,458.89 2,927,761.15
non-current assets
Less：Non business expenses 105,474.99 20,661,325.20
Incl：Loss from disposal of non-current
105,474.99 20,661,325.20
assets
IV.Total profit(“-”for loss) 346,357,959.16 142,565,477.67
Less：Income tax expenses 140,062,221.29 -2,419,204.92
V. Net profit 206,295,737.87 144,984,682.59
Net profit attributable to the owners of
182,538,176.32 128,007,136.26
parent company
Minority shareholders equity 23,757,561.55 16,977,546.33
VI. Other comprehensive income
Net of profit of other comprehensive inco
me attributable to owners of the parent co
mpany.
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
53
Bengang Steel Plates Co., Ltd. Interim Report 2016
（II）
Other comprehensive income that will b
e reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2.Gains and losses from changes in fair v
alue available for sale financial assets
3.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
4.The effective portion of cash flow hedg
es and losses
5.Translation differences in currency fina
ncial statements
6.Other
7.Net of profit of other comprehensive i
ncome attributable to Minority
shareholders equity
VII. Total comprehensive income 206,295,737.87 144,984,682.59
Total comprehensive income attributable
182,538,176.32 128,007,136.26
to the owner of the parent company
Total comprehensive income attributable
23,757,561.55 16,977,546.33
minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.06 0.05
(II)Diluted earnings per share 0.06 0.05
The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 0, last period the combined party realized RMB 0.
Legal Representative:Zhao Zhongmin Person in charge of accounting：Han Ge Accounting Dept Leader:
Wang Shaoyu
4. Income statement of the Parent Company
In RMB
Items Report period Same period of the previous year
I. Income from the key business 13,185,388,447.19 17,219,623,672.44
Incl：Business cost 11,729,886,784.21 16,075,332,690.19
Business tax and surcharge 14,639,973.93 25,346,724.96
54
Bengang Steel Plates Co., Ltd. Interim Report 2016
Sales expense 352,259,509.33 389,133,355.08
Administrative expense 321,474,092.99 347,660,967.07
Financial expenses 555,023,839.47 346,995,923.04
Asset impairment loss -1,880,998.86 30,359,562.51
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 13,713,328.45 6,584,315.11
Incl: investment gains from affiliates
II. Operational profit（“-”for loss） 227,698,574.57 11,378,764.70
Add ：Non-operational income 23,562,540.98 39,590,798.07
Including：Income from disposal of
2,050,505.76 1,215,002.38
non-current assets
Less：Non business expenses 105,474.99 20,661,325.20
Incl：Loss from disposal of non-current
105,474.99 20,661,325.20
assets
III.Total profit(“-”for loss) 251,155,640.56 30,308,237.57
Less：Income tax expenses 138,090,659.07 -13,892,716.40
IV. Net profit（“-”for net loss） 113,064,981.49 44,200,953.97
V.Net of profit of other comprehensive i
ncome
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.
（II）
Other comprehensive income that will b
e reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.
2.Gains and losses from changes in fair
value available for sale financial assets
3.Held-to-maturity investments reclassif
55
Bengang Steel Plates Co., Ltd. Interim Report 2016
ied to gains and losses of available for s
ale financial assets
4.The effective portion of cash flow hed
ges and losses
5.Translation differences in currency fin
ancial statements
6.Other
VI. Total comprehensive income 113,064,981.49 44,200,953.97
VII. Earnings per share：
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items Report period Same period of the previous year
I.Cash flows from operating activities
Cash received from sales of goods or
10,026,046,529.17 11,799,485,304.22
rending of services
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original insurance
contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Net increase of amount from disposal
financial assets that measured by fair
value and with variation reckoned into
current gains/losses
Net increase of inter-bank fund
received
Net increase of trade financial asset
disposal
56
Bengang Steel Plates Co., Ltd. Interim Report 2016
Net increase of repurchasing business
Tax returned 303,389,091.42 317,427,860.94
Other cash received from business
84,327,996.29 68,516,099.75
operation
Sub-total of cash inflow 10,413,763,616.88 12,185,429,264.91
Cash paid for purchasing of
6,825,224,385.05 12,608,376,000.06
merchandise and services
Net increase of client trade and advance
Net increase of savings n 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 643,200,672.87 686,825,981.64
Taxes paid 154,701,105.71 239,325,109.29
Other cash paid for business activities 399,860,089.73 529,033,147.81
Sub-total of cash outflow from business
8,022,986,253.36 14,063,560,238.80
activities
Cash flow generated by business
2,390,777,363.52 -1,878,130,973.89
operation, net
II.Cash flow generated by investing
Cash received from investment
1,550,000,000.00
retrieving
Cash received as investment gains 6,584,315.11
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 2,405,531.00 1,735,037.03
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
2,405,531.00 1,558,319,352.14
investment activities
Cash paid for construction of
fixed assets, intangible assets 758,159,102.38 1,199,505,122.02
and other long-term assets
Cash paid as investment 113,000,000.00 1,747,000,000.00
57
Bengang Steel Plates Co., Ltd. Interim Report 2016
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
871,159,102.38 2,946,505,122.02
investment activities
Net cash flow generated by investment -868,753,571.38 -1,388,185,769.88
III.Cash flow generated by financing
Cash received as investment
Incl: Cash received as investment from
minor shareholders
Cash received as loans 7,222,865,800.00 6,138,810,425.77
Cash received from bond placing
Other financing –related ash received 210,000,000.00
Sub-total of cash inflow from financing
7,432,865,800.00 6,138,810,425.77
activities
Cash to repay debts 6,003,720,086.94 8,170,368,302.09
Cash paid as dividend, profit, or
573,974,920.33 500,641,615.47
interests
Incl: Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing activities
Sub-total of cash outflow due to
6,577,695,007.27 8,671,009,917.56
financing activities
Net cash flow generated by financing 855,170,792.73 -2,532,199,491.79
IV. Influence of exchange rate
388,468,098.61 -8,429,414.17
alternation on cash and cash equivalents
V.Net increase of cash and cash
2,765,662,683.48 -5,806,945,649.73
equivalents
Add: balance of cash and cash
4,612,782,772.98 9,327,034,030.07
equivalents at the beginning of term
VI ..Balance of cash and cash
7,378,445,456.46 3,520,088,380.34
equivalents at the end of term
6. Cash flow statement of the Parent Company
In RMB
58
Bengang Steel Plates Co., Ltd. Interim Report 2016
Items Report period Same period of the previous year
I.Cash flows from operating activities
Cash received from sales of goods or
9,828,128,086.69 12,565,263,147.60
rending of services
Tax returned 299,232,274.50 251,914,135.63
Other cash received from business
71,902,496.61 60,667,306.45
operation
Sub-total of cash inflow 10,199,262,857.80 12,877,844,589.68
Cash paid for purchasing of
6,988,799,423.39 14,478,885,688.79
merchandise and services
Cash paid to staffs or paid for staffs 598,176,442.20 639,757,457.40
Taxes paid 51,750,618.52 164,312,175.78
Other cash paid for business activities 277,308,179.29 479,001,645.67
Sub-total of cash outflow from business
7,916,034,663.40 15,761,956,967.64
activities
Cash flow generated by business
2,283,228,194.40 -2,884,112,377.96
operation, net
II.Cash flow generated by investing
Cash received from investment
1,550,000,000.00
retrieving
Cash received as investment gains 6,584,315.11
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 2,368,625.00 1,735,037.03
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
2,368,625.00 1,558,319,352.14
investment activities
Cash paid for construction of
fixed assets, intangible assets 746,341,472.97 1,184,557,366.86
and other long-term assets
Cash paid as investment 113,000,000.00 1,747,000,000.00
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
activities
59
Bengang Steel Plates Co., Ltd. Interim Report 2016
Sub-total of cash outflow due to
859,341,472.97 2,931,557,366.86
investment activities
Net cash flow generated by investment -856,972,847.97 -1,373,238,014.72
III.Cash flow generated by financing
Cash received as investment
Cash received as loans 6,782,865,800.00 5,338,810,425.77
Cash received from bond placing
Other financing –related ash received 210,000,000.00
Sub-total of cash inflow from financing
6,992,865,800.00 5,338,810,425.77
activities
Cash to repay debts 5,551,474,882.41 6,444,277,209.21
Cash paid as dividend, profit, or
541,489,070.30 459,378,762.47
interests
Other cash paid for financing activities
Sub-total of cash outflow due to
6,092,963,952.71 6,903,655,971.68
financing activities
Net cash flow generated by financing 899,901,847.29 -1,564,845,545.91
IV. Influence of exchange rate
388,459,851.48 -8,429,079.82
alternation on cash and cash equivalents
V.Net increase of cash and cash
2,714,617,045.20 -5,830,625,018.41
equivalents
Add: balance of cash and cash
4,489,630,951.08 9,090,466,146.15
equivalents at the beginning of term
VI ..Balance of cash and cash
7,204,247,996.28 3,259,841,127.74
equivalents at the end of term
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Amount in this period
Owners equity Attributable to the Parent Company
Other Equity
Minor
instrusment Other Commo Total of
Items Share Less: Speciali Attribut shareho
Capital Compre Surplus n risk owners
Capita prefer Shares zed able lders
reserves hensive reserves provisio equity
Sustai
l red Other in stock reserve profit equity
nable Income n
stock
debt
60
Bengang Steel Plates Co., Ltd. Interim Report 2016
3,136, 9,114,8 -1,278,2 12,439,
I.Balance at the 393,372 961,105 504,993
000,00 45,542. 44,071. 093,421
end of last year .05 ,529.85 ,049.45
0.00 05 93 .47
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the 3,136, 9,114,8 -1,278,2 12,439,
393,372 961,105 504,993
beginning of 000,00 45,542. 44,071. 093,421
.05 ,529.85 ,049.45
current year 0.00 05 93 .47
III.Changed in the 5,853,5 182,538 23,757, 212,149
current year 65.24 ,176.32 561.55 ,303.11
（1）Total
182,538 23,757, 206,295
comprehensive
,176.32 561.55 ,737.87
income
（II）Investment
or decreasing of
capital by owners
1．Ordinary Share
s invested by hare
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Amount of
shares paid and
accounted as
owners equity
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2.Providing of
common risk
61
Bengang Steel Plates Co., Ltd. Interim Report 2016
provisions
3．Allotment to the
owners (or
shareholders)
4．Other
(IV) Internal
transferring 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. Other
(V). Special 5,853,5 5,853,5
reserves 65.24 65.24
1. Provided this 14,205, 14,205,
year 775.40 775.40
8,352,2 8,352,2
2．Used this term
10.16 10.16
（VI）Other
3,136, 9,114,8 -1,095,7 12,651,
IV. Balance at the 6,246,9 961,105 528,750
000,00 45,542. 05,895. 242,724
end of this term 37.29 ,529.85 ,611.00
0.00 05 61 .58
Amount in last year
In RMB
Amount in last year
Owners equity Attributable to the Parent Company
Other Equity
Minor
instrusment Total of
Items Other Commo
Share Less: Speciali Attribut shareho
Capital Compre Surplus n risk owners
Capita prefer Shares zed able lders
Sustai reserves hensive reserves provisio equity
l red Other in stock reserve profit equity
nable Income n
stock
debt
62
Bengang Steel Plates Co., Ltd. Interim Report 2016
3,136, 9,114,8 2,172,1 15,836,
I.Balance at the 430,777 961,105 452,296
000,00 45,542. 80,473. 859,184
end of last year .94 ,529.85 ,861.52
0.00 05 24 .60
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the 3,136, 9,114,8 2,172,1 15,836,
430,777 961,105 452,296
beginning of 000,00 45,542. 80,473. 859,184
.94 ,529.85 ,861.52
current year 0.00 05 24 .60
-3,450,4 -3,397,7
III.Changed in the -37,405. 52,696,
24,545. 65,763.
current year 89 187.93
17 13
（1）Total -3,293,6 -3,240,9
52,696,
comprehensive 24,545. 28,357.
187.93
income 17 24
（II）Investment
or decreasing of
capital by owners
1．Ordinary Share
s invested by hare
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
-156,80 -156,80
（III）Profit
0,000.0 0,000.0
allotment
0 0
1.Providing of
surplus reserves
2.Providing of
63
Bengang Steel Plates Co., Ltd. Interim Report 2016
common risk
provisions
3．Allotment to the -156,80 -156,80
owners (or 0,000.0 0,000.0
shareholders) 0 0
4．Other
(IV) Internal
transferring 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. Other
(V) Special -37,405. -37,405.
reserves 89 89
1. Provided this 34,967, 34,967,
year 129.18 129.18
35,004, 35,004,
2．Used this term
535.07 535.07
（VI）Other
3,136, 9,114,8 -1,278,2 12,439,
IV. Balance at the 393,372 961,105 504,993
000,00 45,542. 44,071. 093,421
end of this term .05 ,529.85 ,049.45
0.00 05 93 .47
8. Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Amount in this period
Other Equity instrusment Other
Less: Total of
Items Share Capital Compreh Specialize Surplus Attribut
preferre Shares in able owners
Capital Sustain Other reserves ensive d reserve reserves profit
d stock stock equity
able Income
64
Bengang Steel Plates Co., Ltd. Interim Report 2016
debt
-1,684,4
3,136,00 8,694,693 393,372.0 961,105,5 11,107,73
56,000.
I.Balance at the 0,000.00 ,859.93 5 29.85 6,760.94
end of last year 89
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the -1,684,4
3,136,00 8,694,693 393,372.0 961,105,5 11,107,73
beginning of 56,000.
0,000.00 ,859.93 5 29.85 6,760.94
current year 89
III.Changed in the 5,853,565 113,064 118,918,5
current year .24 ,981.49 46.73
（1）Total
113,064 113,064,9
comprehensive
,981.49 81.49
income
（II）Investment or
decreasing of
capital by owners
1．Ordinary Share
s invested by hareh
olders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2．Allotment to the
owners (or
shareholders)
3．Other
65
Bengang Steel Plates Co., Ltd. Interim Report 2016
(IV)Internal
transferring 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. Other
(V) Special 5,853,565 5,853,565
reserves .24 .24
1. Provided this 14,205,77 14,205,77
year 5.40 5.40
8,352,210 8,352,210
2．Used this term
.16 .16
（VI）Other
-1,571,3
IV. Balance at the 3,136,00 8,694,693 6,246,937 961,105,5 11,226,65
91,019.
end of this term 0,000.00 ,859.93 .29 29.85 5,307.67
40
Amount in last year
In RMB
Amount in last year
Other Equity instrusment
Other
Less: Total of
Items Share Capital Compreh Specialize Surplus Attribut
preferre Sustain Shares in able owners
Capital Other reserves ensive d reserve reserves profit
d stock able stock equity
Income
debt
2,015,3
3,136,00 8,694,693 430,777.9 961,105,5 14,807,62
90,594.
I.Balance at the 0,000.00 ,859.93 4 29.85 0,761.73
end of last year 01
Add: Change of
accounting
policy
Correcting of
previous errors
66
Bengang Steel Plates Co., Ltd. Interim Report 2016
Other
II.Balance at the 2,015,3
3,136,00 8,694,693 430,777.9 961,105,5 14,807,62
beginning of 90,594.
0,000.00 ,859.93 4 29.85 0,761.73
current year 01
-3,699,8
III.Changed in the -37,405.8 -3,699,88
46,594.
current year 9 4,000.79
90
（1）Total -3,543,0
-3,543,04
comprehensive 46,594.
6,594.90
income 90
（II）Investment or
decreasing of
capital by owners
1．Ordinary Share
s invested by hareh
olders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
-156,80
（III）Profit -156,800,
0,000.0
allotment 000.00
0
1.Providing of
surplus reserves
2．Allotment to the -156,80
-156,800,
owners (or 0,000.0
000.00
shareholders) 0
3．Other
(IV)Internal
transferring of
owners equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
67
Bengang Steel Plates Co., Ltd. Interim Report 2016
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special -37,405.8 -37,405.8
reserves 9 9
1. Provided this 34,967,12 34,967,12
year 9.18 9.18
35,004,53 35,004,53
2．Used this term
5.07 5.07
（VI）Other
-1,684,4
IV. Balance at the 3,136,00 8,694,693 393,372.0 961,105,5 11,107,73
56,000.
end of this term 0,000.00 ,859.93 5 29.85 6,760.94
89
II1. Compan y P rofile
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
68
Bengang Steel Plates Co., Ltd. Interim Report 2016
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 2016, the capital shares of Bengang Steel Plates Co., Ltd were amounted to 3,136,000,000 shares.
The business license was numbered 2100001049024. The registered address is: 18th Renmin, 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.
The company belongs to the ferrous metal smelting and rolling processing industry sectors. The main business
activities of production and sales of ferrous metal products.
The above financial accounts were approved by the Board of Directors on August 23, 2016.
As of June 30, 2016, 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.
Benxi Bengang Steel Sales Ltd.
Shenyang Bengang Metallurgical Technology Co., Ltd.
No change made to the consolidating range in the report period.
69
Bengang Steel Plates Co., Ltd. Interim Report 2016
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 , 12 months have since continued viability of the reporting
period.
V. Material Accounting Policies and Accounting Estimations
The following contents are covering the detailed accounting policies and estimations made in accordance with the
business practice 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
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
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between the carrying amount of the net assets obtained by the Company and the carrying amount of the
consideration paid by it (or the total par value of the shares issued), capital reserve needs to be adjusted. If the
capital reserve is not sufficient, any excess shall be adjusted against retained earnings.
Business combination 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 been consolidated into the scope of consolidation for this period ended.
2. Consolidation process
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
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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 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;
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(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 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.
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The foreign currency monetary items shall be translated at the spot exchange rate on the balance sheet date. The
balance of exchange arising from the difference between the spot exchange rate on the balance sheet date and the
spot exchange rate at the time of initial recognition or prior to the balance sheet date, except those arising from the
raising of special foreign debt for the purchase or construction of capitalizable assets thus shall be capitalized
according to the borrowing costs capitalization principle, shall be recorded into the profits and losses at the current
period.
2. Translation of foreign currency financial statements
The asset and liability items in the statement of financial position shall be translated at a spot exchange rate on the
balance sheet date. Among the owner's equity items, except the ones as "undistributed profits", others shall be
translated at the spot exchange rate at the time when they are incurred. The income and expense items in the
statement of comprehensive income shall be translated at the spot exchange rate of the transaction date.
When disposing an overseas business, the Company shall shift the balance, which is presented under the items of
the owner's equities in the statement of financial position and arises from the translation of foreign currency
financial statements related to this oversea business, into the disposal profits and losses of the current period.
10. Financial instruments
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.
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When disposing the receivables, the difference between the proceeds and the carrying value is recognized in the
income statement.
(4) Available for sale financial assets
Available for sale financial assets are initially recorded at fair value plus any directly attributable transaction costs
on the trade date and subsequently re-measured at fair value. The price including the declared but not received
bond interest or cash dividend is recognized as a separate item.
The Company recognizes the interest or cash dividends as investment income. At each balance sheet date,
available-for-sale financial assets are measured at fair value and the fair value changes are recognized in the
capital reserve - other capital reserve.
The difference between the proceeds of the disposal and the carrying value 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
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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 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. There is no active market of financial instruments, valuation
techniques used to determine the fair value. In the valuation, the company adopted in current circumstances
applicable and has enough available data and other information to support the valuation techniques, considered by
the selection and market participants in the related assets or liabilities of the trading assets or liabilities
characteristics consistent with the input values, and give priority to the use of relevant observable inputs. Only in
the related unable to obtain or achieve is not feasible to the observation of the input value, not observable inputs.
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
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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.
(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:
√ Applicable □ Not applicable
Rate of provision on other receivable
Age Rate of provision on receivable accounts
accounts
1－2 years 5.00% 5.00%
2－3 years 20.00% 20.00%
Over 3 years 100.00% 100.00%
Accounts on percentage basis in the portfolio in the group:
□ Applicable √ Not applicable
Accounts on other basis in the portfolio in the group:
□ Applicable √ 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.
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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
The net realizable value of inventories (finished products, stock commodity, material etc.) held for direct selling
in the daily business activity shall be calculated by deducting the estimated sale expense and relevant taxes from
the estimated sale price of inventories. The net realizable value of inventories for further processing in the daily
business activity shall be calculated by deducting the estimated cost of completion, estimated sale expense and
relevant taxes from the estimated sale price of inventories. The net realizable value of inventories held for the
execution of sales contracts or labor contracts shall be calculated on the ground of the contract price. If an
enterprise holds more inventories than the quantities subscribed in the sales contract, the net realizable value of
the excessive part of the inventories shall be calculated on the ground of the general sales price.
The Company shall make provision for loss on decline in value of inventories on the ground of each item of
inventories at the year end. For inventories with large quantity and relatively low unit prices, the provision for loss
on decline in value of inventories shall be made on the ground of the categories of inventories.
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.
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
The Companys component(or non-current asset) will recognize as held-for-sale while satisfied the followed
conditions simultaneously:
（1）The component can be promptly sold at its existing status only according to the practice terms in connection
with disposal of this kind of assets;
（2）The Company has already made resolution on disposal of such component, such as approved by shareholders
in line with regulations, have already approved by general meeting or relevant authority;
（3）The Company entered into irrevocable transfer agreement with the transferee;
（4）This transfer will be completed within one year.
14. Long-term equity investment
1. Criteria of join control and significant influence
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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.
(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
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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.
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,
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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.
15. Investment property
Measurement model of investment real estate
Cost measurement
Depreciation or amortization method
The term "investment properties" refers to the real estate held for generating rent and/or capital appreciation. The
investment properties include: The land use right which has already been rented;
The land use right which is held and prepared for transfer after appreciation; 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.
(2) Depreciation method
Categories Basis of depreciation Depreciation Period Retain value rate Annual depreciation ratio
Straight average on
Houses & buildings 8-40 years 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
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(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.
(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
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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.
19. Biological assets
20. Oil & gas 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 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
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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
As of the balance sheet date, , the useful life of the intangible assets is still uncertain.
4. 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.
5. 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.
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.
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Bengang Steel Plates Co., Ltd. Interim Report 2016
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.
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. 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.
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Bengang Steel Plates Co., Ltd. Interim Report 2016
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
When the Company cannot unilaterally withdraw the offer of termination benefits because of an employment
termination plan or a curtailment proposal, 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:
(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
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Bengang Steel Plates Co., Ltd. Interim Report 2016
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.Stock payable
27.Preferred stock, sustainable debt 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.
The company mainly sells products such as steel. Domestic revenue is recognized need to meet the following
criteria: The company has agreed to deliver the product to the buyer under the contract, the amount of revenue and
product sales has been determined, the money has been recovered or made payment vouchers and related
economic benefits are likely to flow, product-related the cost can be measured reliably. Export revenue is
recognized must meet the following conditions: According to the contract the company has a product declaration,
departure, made the bill of lading, and the sales revenue amount has been determined, the money has been
recovered or made payment vouchers and related economic benefits are likely to flow, costs associated with the
product can be measured reliably.
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
(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
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Bengang Steel Plates Co., Ltd. Interim Report 2016
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 Subsidies
(1) Determination basis and accounting for government grants related to assets
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.
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.
(2) Determination basis and accounting for government grants related to income
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 tax assets and deferred tax liabilities
An enterprise 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 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)
An entity shall offset deferred tax assets and deferred tax liabilities if, and only if: (a) the entity has a legally
enforceable right to set off current tax assets against current tax liabilities; and (b) the deferred tax assets and the
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Bengang Steel Plates Co., Ltd. Interim Report 2016
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
Has been discontinued operations of the Company is to meet the Company disposed of or classified as held for
sale, at the time of operation and preparation of financial statements can be separately identified part of the
following conditions:
(1)This part represents the composition of a separate major business or a major business area;
(2)This part is a part intended for an independent or a major business areas mainly engaged in the disposal
program;
（3）This part is just to re-sell the subsidiary acquired
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Bengang Steel Plates Co., Ltd. Interim Report 2016
33. Change of material accounting policies and estimations
(1) Material accounting policies
[] Applicable; [V] Not applicable
(2) Material estimations
[] Applicable; [V] Not applicable
34.Other
VI. Taxation
1. Types and rates of taxes
Taxes Tax references Applicable tax rates
Calculated on tax law from selling goods
and taxable services based on the
VAT calculation of output tax, after deduction of 17%、11%、6%
input tax deductibility of the current
period, the balance part of VAT payable
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
Paid upon actual amount of operational tax
Education surcharge 25%
and VAT
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
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3.Other
VII. Notes to Consolidated Financial Statements
1. Monetary fund
In RMB
Items Closing balance Opening balance
Cash in stock 78,640.40 72,220.66
Bank deposit 7,220,139,489.04 4,612,384,032.13
Other monetary fund 551,861,578.49 528,024,257.18
Total 7,772,079,707.93 5,140,480,509.97
Other statements
Notes: No funds are deposited abroad at the year-end.
The details of restricted monetary funds
Items Closing balance Opening balance
Margin for bank acceptance bill 332,718,301.47 508,347,736.99
Foreign exchange deposit 58,045,950.00 19,350,000.00
Total 390,764,251.47 527,697,736.99
2. Financial assets that are measured at fair value and whose movements are included in the profit and loss
of the current period
In RMB
Items Closing balance Opening balance
Other notes:
2. Derivate financial assets
[] Applicable; [V] Not applicable
4. Notes receivable
1) Notes receivable disclosed by category
In RMB
Items Closing balance Opening balance
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Bengang Steel Plates Co., Ltd. Interim Report 2016
Bank acceptance bill 2,540,306,429.25 2,446,693,577.16
Commercial acceptance bill 2,988,984.00
Total 2,540,306,429.25 2,449,682,561.16
2) The pledged acceptance bill at the year-end
In RMB
Items Amount on pledge
Bank acceptance bill 770,311,374.10
Total 770,311,374.10
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 4,677,504,967.56
Total 4,677,504,967.56
4) Notes transfer to account receivable due to the failure implementation from drawer at period-end.
In RMB
Items Amount
Other notes
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 Proportio Book value
Amount Amount value Amount Amount Proportion
n n n
Account receivable
withdrawal bad debt
604,993, 152,289, 452,703,9 642,517 153,932,3 488,584,62
provision by group of 100.00% 25.17% 100.00% 23.96%
137.21 145.85 91.36 ,001.01 76.29 4.72
credit risk
characterstics
604,993, 152,289, 452,703,9 642,517 153,932,3 488,584,62
Total 100.00% 25.17% 100.00% 23.96%
137.21 145.85 91.36 ,001.01 76.29 4.72
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Bengang Steel Plates Co., Ltd. Interim Report 2016
Receivable accounts with large amount individually and bad debt provisions were provided
[] 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
Closing balance
Age
Account receivable Bad debt provision Rate
Segments within 1 year
380,273,029.29
within 1 year 380,273,029.29
Subtotal of within 1 year 30,596,472.85 1,529,823.64 5.00%
1-2 years 54,205,391.08 10,841,078.22 20.00%
2-3 years 139,918,243.99 139,918,243.99 100.00%
Over 3 yrs 604,993,137.21 152,289,145.85 25.17%
Total
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 .Account receivable withdrawal bad debt provision by group of credit risk characterstics：
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 in the Group:
Age Rate for receivables (%) Rate for other receivables (%)
Within 1 year, (included)
1-2 years (included) 5 5
2-3 years (included) 20 20
93
Bengang Steel Plates Co., Ltd. Interim Report 2016
Over 3 years 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.
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) 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 RMB1,643,230.44 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
None
(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 %
Benxi Nanfen Xinhe metallurgical furnace Co 82,035,076.96 13.56
Ltd
Benxi Steel （Group）Machinery 41,541,034.19 6.87 1,553,819.73
Manufacturing Co., Ltd.
94
Bengang Steel Plates Co., Ltd. Interim Report 2016
Benxi Steel（Group）Industrial Development 40,175,314.38 6.64 493,841.63
Co., Ltd.
Liaoyang Petroleum Tube Co., Ltd. 35,652,692.38 5.89 3,341,228.18
Huayou Steel Tube Co., Ltd. 32,873,213.55 5.43 5,891,750.53
Total 232,277,331.46 38.39 11,280,640.07
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
Other notes：
None
6. Prepayment
(1) Prepayment presented by ages:
In RMB
Closing balance Opening balance
Age
Amount Proportion Amount Proportion
within 1 year 372,856,984.97 75.35% 423,542,198.08 74.32%
1-2 years 119,551,755.23 24.16% 139,209,276.37 24.43%
2-3 years 2,424,683.78 0.49% 7,100,476.24 1.25%
Over 3 years 494,833,423.98 -- 569,851,950.69 --
Total
Notes: Significant prepayment with aging over 1 year is paid for commodity in advance and the settlement terms
agreed in the contract are not due.
(2) Top 5 prepayment categorized upon objects
Objects Closing balance Percentage in total prepayment at year
end
Benxi Beiying Steel & Iron (Group) Co., Ltd. 257,036,132.56 51.94
Zhongye Shanya Heavy Industry 40,478,546.20 8.18
China First Heavy Machinery Co., Ltd. 19,933,372.56 4.03
Benxi Steel (Group) Machinery Co., Ltd. 16,989,164.37 3.43
95
Bengang Steel Plates Co., Ltd. Interim Report 2016
Zhongye Nanfang (Wuhan)Weishi Industrial 14,880,000.00 3.01
Furnace Co., Ltd.
Total 349,317,215.69 70.59
Other notes：
None
7.Interest receivable
(1)Interest receivable disclosed by category
In RMB
Items Closing balance Opening balance
Fixed deposi 2,487,392.36 3,524,615.12
Total 2,487,392.36 3,524,615.12
（2）Significant overdue interest
Whether occurred
Borrower Balance in year-end Overdue time Reason impairment and its
judgment basis
Other notes：
8.Dividend receivable
（1）Dividend receivable
In RMB
Items Closing balance Opening balance
（2）Significant dividend receivable aged over 1 year
In RMB
Whether occurred
Items (Or investees) Balance in year-end Aging Reason impairment and its
judgment basis
Other notes:
9. Other account receivable.
(1) Other receivables disclosed by category
In RMB
96
Bengang Steel Plates Co., Ltd. Interim Report 2016
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categories Book
Proportio Proportio Proportio Book value
Amount Amount value Amount Amount Proportion
n n n
Other account
receivable
withdrawal bad debt 203,223, 65,987,0 137,236,4 216,153 66,224,83 149,928,87
99.15% 32.47% 99.20% 30.64%
provision by group of 515.77 70.09 45.68 ,715.77 8.51 7.26
credit risk
characterstics
Other account
receivable with
1,740,00 1,740,000 1,740,0 1,740,000.0
single minor amount 0.85% 0.80%
0.00 .00 00.00 0
but withdrawal bad
debt provisionsingly
204,963, 65,987,0 138,976,4 217,893 66,224,83 151,668,87
Total 100.00% 32.19% 100.00% 30.39%
515.77 70.09 45.68 ,715.77 8.51 7.26
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[]Not Applicable
In RMB
Closing balance
Age
Other account receivable Bad debt provision Rate
Segments within 1 year
126,331,379.64
Subtotal of within 1 year 126,331,379.64
1-2 years 10,848,731.12 542,436.56 5.00%
2-3 years 2,923,464.35 584,692.87 20.00%
Over 3 yrs 64,859,940.66 64,859,940.66 100.00%
Total 204,963,515.77 65,987,070.09 32.19%
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 RMB 5 million or over.
Providing method of bad debt provisions on single receivable account with major amount
97
Bengang Steel Plates Co., Ltd. Interim Report 2016
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.
2. 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 year, (included)
1-2 years (inclusive) 5 5
2-3 years (inclusive) 20 20
Over 3 years 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 RMB237,768.42 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
None
98
Bengang Steel Plates Co., Ltd. Interim Report 2016
(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.
None
(4) Other receivables disclosed by nature
In RMB
Account property Closing balance of book value Opening balance of book value
Account 166,231,279.34 151,337,358.60
Export tax rebate 32,772,729.71
Margin and deposit 4,039,822.75 3,571,060.87
Others 7,708,416.11 8,296,700.68
Input tax to be deducted 26,983,997.57 21,915,865.91
Total 204,963,515.77 217,893,715.77
(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 26,983,997.57 Within 1 year 13.17%
Bengang Group
International Trading Current account 12,052,433.54 Within 1 year 5.88%
Co., Ltd.
Huozhou Coal &
Electricity Group Current account 4,341,257.18 Over 3 years 2.12% 4,341,257.18
Co., Ltd.
Zhejiang Sunon
Furniture
Current account 2,385,401.00 1-2 years 1.16% 139,270.05
Manufacturing Co.,
Ltd.
Liaoning
Current account 2,261,360.00 Over 3 years 1.10% 2,261,360.00
Huaweixuan coal
99
Bengang Steel Plates Co., Ltd. Interim Report 2016
Co., Ltd.
Total -- 48,024,449.29 -- 23.43% 6,741,887.23
(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 account receivable which terminate the recognition owning to the transfer of the financial assets
None
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
None
Other notes：
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 5,450,193,415.41 4,894,918.76 5,445,298,496.65 5,527,236,707.17 4,894,918.76 5,522,341,788.41
Product in
1,275,778,623.14 1,275,778,623.14 1,011,630,448.37 192,850,188.37 818,780,260.00
process
Products in stock 2,834,325,269.36 50,789,745.56 2,783,535,523.80 2,566,825,937.84 306,213,543.83 2,260,612,394.01
Total 9,560,297,307.91 55,684,664.32 9,504,612,643.59 9,105,693,093.38 503,958,650.96 8,601,734,442.42
(2) Inventory impairment provision
In RMB
Items Opening balance Increased current period Decreased current period Closing balance
100
Bengang Steel Plates Co., Ltd. Interim Report 2016
Written back or
Provided Others Others
off
Raw materials 4,894,918.76 4,894,918.76
Product in
192,850,188.37 192,850,188.37
process
Products in stock 306,213,543.83 255,423,798.27 50,789,745.56
Total 503,958,650.96 448,273,986.64 55,684,664.32
(3) Statement on part of the inventory balance which was the capitalized borrowing expenses
None
（4）Assets unsettled formed by constructin contract which has completed at period-end
In RMB
Items Amount
Other notes：
11. Divided into assets held for sale
In RMB
Items Book value Fair value Cost Time
Other notes：
12. Non-current assets maturing within one year
In RMB
Items Closing balance Opening balance
Other notes：
13. Other non-current assets
In RMB
Items Closing balance Opening balance
Prepaid income tax
VAT and input tax to be deducted
Bank short-term financial products
Total
Other notes：
14. Available-for-sale financial assets
101
Bengang Steel Plates Co., Ltd. Interim Report 2016
(1) Available-for-sale 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) Available-for-sale financial assets measured at fair value at period-end
In RMB
Classification Equity instruments Debt instrument Total
(3) Available-for-sale financial assets measured at cost at the end of the period
In RMB
Book balance Provision for impairment Shareholdi
Cash
Items Beginning Ending Beginning Ending ng ratio in
Increase Decrease Increase Decrease dividends
balance balance balance balance investee
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
Shanghai 14,414,693 14,414,693
15.00%
Steel .00 .00
Processing
Co., Ltd.
20,271,278 20,271,278
Total --
.63 .63
102
Bengang Steel Plates Co., Ltd. Interim Report 2016
(4) Changes of impairment of available-for-sale financial assets in Period
In RMB
Classification Equity instruments Debt instrument Total
(5) Fair value of the available-for-sale equity instrument drops significantly or not contemporarily without
depreciation reserves accrued
In RMB
Fair value relative
to the cost of the Falling time Amount of
Items Investment cost Fair value Season
decline in the （Month） impairment
magnitude
Other notes
15. Held-to-maturity investment
(1) Held-to-maturity investment
In RMB
Closing balance Opening balance
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
(2) Important held-to-maturity investment at period-end
In RMB
Items Face value Interest rate Actual rato expiring date
(3) Reclassify of held-to-maturity investment in the period（
Other notes
16. Long-term account receivables
(1) Long-term account receivables
In RMB
Closing balance Opening balance
Discount rate
Items Impairment Impairment
Book balance Book value Book balance Book value interval
provision provision
(2) Long-term account receivable with recognition terminated due to financial assets transfer
None
(3) Assets and liabilities due to long-term receivable transfer and continuous involvement
103
Bengang Steel Plates Co., Ltd. Interim Report 2016
Other notes
17. Long-term equity investments
In RMB
Changes
Investme
nt Addustme Impairme
Cash
Additiona gains/loss nt of Provision nt
Opening Other dividend Closing
Investee l Capital es other for provision
balance equity or profit Other balance
investmen reduction recognite commpre impairme at ending
changes declare to
t d by hensive nt losses balance
issue
equity incme
method
I.Joint venture
II. Associated enterprise
Other notes
18.Investment real estate
（1）Investment real estate by cost meeasurement
□ Applicable √Not applicable
（2）Investment real estate by fair value
□ Applicable√ Not applicable
（3）Investment real estate without certificate of ownership
In RMB
Items Book value Reason
Other notes
19. Fixed assets
(1) Particulars of fixed assets
In RMB
Transportation
Items Houses & buildings Equipment & machinery Total
equipment
I.Original value
104
Bengang Steel Plates Co., Ltd. Interim Report 2016
1.Opening balance 10,575,548,527.75 37,145,242,250.50 836,816,572.35 48,557,607,350.60
2.Increased amount of
39,098,499.60 14,886,156.26 1,735,855.26 55,720,511.12
the period
（1）Purchase 493,502.08 493,502.08
（2）Transferred in from
39,098,499.60 14,886,156.26 1,242,353.18 55,227,009.04
construction in process
（3）Increased by merger
3. Decreased this
21,154,497.90 2,654,864.42 23,809,362.32
period
（1）Disposed 21,154,497.90 2,654,864.42 23,809,362.32
4. Closing balance 10,614,647,027.35 37,138,973,908.86 835,897,563.19 48,589,518,499.40
II. Accumulative
depreciation
1. Opening balance 4,699,483,576.90 23,257,690,103.38 543,419,803.08 28,500,593,483.36
2. Increased this period 209,041,158.29 803,213,628.95 3,301,806.35 1,015,556,593.59
（1）Provision 209,041,158.29 803,213,628.95 3,301,806.35 1,015,556,593.59
3. Decreased this
20,191,644.81 2,281,326.85 22,472,971.66
period
（1）Disposed 20,191,644.81 2,281,326.85 22,472,971.66
4. Closing balance 4,908,524,735.19 24,040,712,087.52 544,440,282.58 29,493,677,105.29
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
105
Bengang Steel Plates Co., Ltd. Interim Report 2016
1. Book value at end
5,697,914,204.31 13,095,710,768.69 291,457,280.61 19,085,082,253.61
of period
2. Book value at
5,867,856,863.00 13,885,001,094.47 293,396,769.27 20,046,254,726.74
beginning of period
(2) Fixed assets temporarily idled
In RMB
Accumulated Provision for
Items Original book value Book value Remark
depreciation impairment
(3) Fixed assets leased out on finance
In RMB
Items Original book value Accumulated epreciation Provision for impairment Book value
(4) Fixed assets leased in the operating leases
In RMB
Items Book value
House and Building 8,965,226.55
（5）Fixed assets without certificate of title completed
In RMB
Items Book value Reason for certificate not granted
House and Building 667,342,625.23 Not yet handled
Other notes
20. 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
Cool rolling high
strength steel 4,328,354,712.57 4,328,354,712.57 3,451,712,764.91 3,451,712,764.91
rebuilding
hot galvanizing
379,760,103.10 379,760,103.10 335,752,700.00 335,752,700.00
project of No.3
106
Bengang Steel Plates Co., Ltd. Interim Report 2016
hot rolling factory
Environmental
reconstruction of
converter and the
165,139,136.13 165,139,136.13 153,224,111.93 153,224,111.93
180t
dephosphorizatio
n converter
360 M2 sintering
1,018,134,976.87 1,018,134,976.87 973,980,424.51 973,980,424.51
machine
Reconstruction of
hot-rolling 4,230,929.56 4,230,929.56
equipment
The new energy
control center 237,457,660.53 237,457,660.53 226,586,153.73 226,586,153.73
project
Information
225,681,597.87 225,681,597.87 223,389,048.63 223,389,048.63
system project
Department of
transportation
passenger
dedicated to 47,995,690.74 47,995,690.74
supporting the
transformation of
the South
Other 682,958,361.54 682,958,361.54 229,752,469.26 229,752,469.26
Total 7,037,486,548.61 7,037,486,548.61 5,646,624,293.27 5,646,624,293.27
(2) Material change in construction-in-progress
In RMB
Includin
Amount Ratio of Accumul Capitaliz
g:
Increase transferr Other accumul ate of ation
Opening Closing interest Fund
Projects Budget d current ed to deductio ative Progress interest ratio of
balance balance capitaliz recourse
period fixed n input on capitaliz current
ed this
asset budget ed period
term
Cool
rolling
high 6,100,00 3,451,71 876,641, 4,328,35 392,357, 87,210,0
strength 64.32% 70 4.35% Other
steel 0,000.00 2,764.91 947.66 4,712.57 856.29 15.82
rebuildin
g
hot
galvanizi 869,180, 335,752, 44,007,4 379,760,
ng 43.69% 50 Other
project 000.00 700.00 03.10 103.10
of No.3
107
Bengang Steel Plates Co., Ltd. Interim Report 2016
hot
rolling
factory
Environ
mental
reconstru
ction of
converte
r and the 1,778,64 153,224, 11,915,0 165,139, 137,802, 9,954,88
84.41% 90 4.35% Other
180t 4,000.00 111.93 24.20 136.13 453.76 6.45
dephosp
horizatio
n
converte
r
360 M2
1,277,73 973,980, 44,154,5 1,018,13 51,831,1 16,235,8
sintering 80.31% 90 4.35% Other
8,000.00 424.51 52.36 4,976.87 61.69 71.31
machine
Reconstr
uction of
hot-rolli 332,870, 4,230,92 4,230,92
85.27% 100 Other
ng 000.00 9.56 9.56
equipme
nt
The new
energy
284,100, 226,586, 12,071,8 1,200,38 237,457, 40,258,1 5,095,53
control 83.58% 95 4.35% Other
000.00 153.73 95.54 8.74 660.53 45.63 8.49
center
project
Informat
390,380, 223,389, 2,292,54 225,681, 34,499,7 321,813.
ization 90.44% 96 4.35% Other
000.00 048.63 9.24 597.87 86.12 49
project
dedicate
d to
supporti
ng the 55,980,0 47,995,6 47,995,6
84.97% 100 4.35% Other
transfor 00.00 90.74 90.74
mation
of the
South
229,752, 455,005, 1,800,00 682,958, 9,453,91 5,108,74
Other Other
469.26 892.28 0.00 361.54 1.30 6.37
11,088,8 5,646,62 1,446,08 55,227,0 7,037,48 666,203, 123,926,
Total -- -- --
92,000.0 4,293.27 9,264.38 09.04 6,548.61 314.79 871.93
108
Bengang Steel Plates Co., Ltd. Interim Report 2016
0
(3) Impairment provision provided on construction in process
In RMB
Items Provided this period Reason to provide
Other notes
Notes
21. Project material
In RMB
Items Closing balance Opening balance
Special equipment 4,134,140.45 4,152,880.79
Total 4,134,140.45 4,152,880.79
Other notes：
None
22.Fixed assets
In RMB
Items Closing Balance Openinng balance
Other notes：
None
23.Productive biological assets
（1）Measured by cost
□ Applicable √Not applicable
（2）Measured by fair value
□ Applicable √Not applicable
24.Oil and gas assets
□ Applicable √ Not applicable
109
Bengang Steel Plates Co., Ltd. Interim Report 2016
25. Intangible assets
（1）Intangible assets
In RMB
Non-patent
Items Land using right Patent right Computer software Total
technology
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）The
increase in business
combination
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
30,838,789.07 27,122.55 30,865,911.62
balance
2. Increased this
2,962,453.12 7,075.46 2,969,528.58
period
（1）Provision 2,962,453.12 7,075.46 2,969,528.58
3.Decreased this
period
（1）Disposal
4. Closing balance 33,801,242.19 34,198.01 33,835,440.20
III. Impairment
provision
1. Opening
balance
2. Increased this
110
Bengang Steel Plates Co., Ltd. Interim Report 2016
period
（1）Provision
3. Decreased this
period
（1）Disposal
4. Closing
balance
IV. Book value
1. Book value
262,444,072.57 107,311.42 262,551,383.99
at end of period
2. Book value
at beginning of 265,406,525.69 114,386.88 265,520,912.57
period
The proportion of intangible assets balance accounted for by the company's internal R & D by the end.
(2) Land use right without certificate of title completed
In RMB
Items Book value Reason for certificate not granted
Other notes：
None
26.Development expenditure
In RMB
Opening Closing
Items Increase Decrease
balance balance
Other notes
None
27.Goodwill
（1）The original book value of goodwill
In RMB
Name Opening balance Increase Decrease Closing balance
（2）Impairment of goodwill
In RMB
111
Bengang Steel Plates Co., Ltd. Interim Report 2016
Name Opening balance Increase Decrease Closing balance
Other notes：
28.Long-term deferred expenses
In RMB
Items Opening balance Increase Amortization Other decrease Closing balance
Other notes
None
29. 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
284,720,020.76 71,180,005.19 734,875,006.26 183,718,751.57
provision
Internal trade profit not
-13,082,614.20 -3,270,653.55 -20,995,185.07 -5,248,796.27
realized
Deductible loss 1,381,765,955.22 345,441,488.81 1,494,830,936.71 373,707,734.18
Depreciation or
333,978,859.03 83,494,714.76 333,978,859.03 83,494,714.76
amortization difference
Welfare for retired
5,392,221.37 1,348,055.34 6,946,500.22 1,736,625.06
employee
Unpaid employee salary 30,500,015.53 7,625,003.88 18,088,405.90 4,522,101.48
Total 2,023,274,457.71 505,818,614.43 2,567,724,523.05 641,931,130.78
2. Unrecognized deferred tax assets
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
Items
between deferred income deferred income tax asset between deferred income deferred income tax asset
112
Bengang Steel Plates Co., Ltd. Interim Report 2016
tax asset and liability at or liability after tax asset and liabilities at or liability after
end of period deduction opening of period deduction
Deferred income tax
505,818,614.43 641,931,130.78
asset
(4) Details of unrecognized deferred income tax asset
In RMB
Items Closing balance Opening balance
Deductible loss 2,912,363,442.38 2,912,363,442.38
Total 2,912,363,442.38 2,912,363,442.38
(5) Deductible losses of unrecognized deferred income tax asset due in next period
In RMB
Year Amount at end of term Initial amount Note
2016
2017 405,383,631.05 405,383,631.05
2018 267,988,139.50 267,988,139.50
2019 179,596,211.65 179,596,211.65
2020 2,059,395,460.18 2,059,395,460.18
Total 2,912,363,442.38 2,912,363,442.38 --
Notes: The balance is subject to the verification and confirmation of the local tax bureau.
30.Other not-current assets
In RMB
Items Closing balance Opening balance
Other notes：
31.Short-term loans
(1) Categories of short-term loans
In RMB
Items Closing balance Opening balance
Pledge loan 1,102,740,000.00 1,966,875,200.00
Mortgage loan 14,220,000.00 14,220,000.00
113
Bengang Steel Plates Co., Ltd. Interim Report 2016
Guarantee loan 10,303,776,800.00 10,586,898,400.00
Credit loan 6,761,928,079.48 5,571,891,996.60
Total 18,182,664,879.48 18,139,885,596.60
Statement on categories of short-term loans.
The closing pledge loan includes the domestic order financing short-term loan, 902,740,000.00 yuan, borrowed
from ICBC Benxi Branch, exporter bill financing short-term US dollar loan, borrowed from business department
of ABC Benxi Branch, and accounts payable factoring, 200,000,000 yuan, acquired from business department of
ABC Benxi Branch. The closing mortgage loan is that Benxi Iron& Steel Group Financial Co., Ltd. Provides a
mortgage loan of 14,220,000 yuan for its subsidiary Dalian Benruitong Automobile Material Technolgoy Co., Ltd.
(hereinafter referred to as ”Dalian Benruitong”), with the production equipment of Dalian Benruitong as the
guarantee, and the highest blanace of security guarantee is 110,000,000 yuan.
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
Other notes：
None
32.Financial liabilities measure at fair value through current profit and loss
In RMB
Items Closing balance Opening balance
Other notes：
None
33Derivative financial liabilities
□ Applicable √ Not applicable
34. Notes payable
In RMB
Categories Closing balance Opening balance
Bank acceptance 1,880,570,032.85 2,110,511,950.79
Total 1,880,570,032.85 2,110,511,950.79
Notes payable mature as of end of period was RMB0.00.
35. Account payable
(1) Payables
In RMB
114
Bengang Steel Plates Co., Ltd. Interim Report 2016
Items Closing balance Opening balance
Trade payable 6,420,836,865.36 4,045,710,114.68
Labour service 40,070,052.01 47,556,941.28
Project and equipment accounts payable 552,917,775.34 455,338,318.37
Maintaining 522,470,790.43 464,461,747.57
Others 2,792,393.86 2,833,542.57
Total 7,539,087,877.00 5,015,900,664.47
(2) Material payable aged over 1 year
In RMB
Items Closing balance Reason of not paid or transferred
Benxi Steel & Iron Group Mining Co., Ltd 1,967,067,450.64 Not cleared yet
Jixi Huasheng Fengyuan Coal Selection
66,005,916.07 Not cleared yet
Co., Ltd.
Zhongye Jiaonai Exgineering Technology
24,666,001.00 Not cleared yet
Co., Ltd.
Hangzhou Tianshen Materials Co., Ltd. 21,330,633.40 Not cleared yet
Total 2,079,070,001.11 --
Notes: Accounts payable at the year-end includes a letter of credit which has not yet matured amounting
to RMB 1,115,172,315.04 payable to Benxi Steel (Group) Mining Co., Ltd., Accounts payable at the
year-end includes a letter of credit which has not yet matured amounting to RMB1,634,032,697.90
payable to Benxi Beiying (Steel) Co., Ltd
36. Account received in advance
(1) Advances received
In RMB
Items Closing balance Opening balance
Trade collected in advance 2,482,940,910.75 1,815,443,452.05
Total 2,482,940,910.75 1,815,443,452.05
115
Bengang Steel Plates Co., Ltd. Interim Report 2016
(2) Account received in advance with major amount and aging of over one year
In RMB
Items Closing balance Outstanding or carry-over reasons
(3) Assets settled formed by construction contract which has un-completed at period-end
In RMB
Items Amount
Other notes：
None
37. Wage payable
(1) Wage payable
In RMB
Items Opening balance Increased this period Decreased this period Closing balance
Short-term wages 29,508,643.54 720,635,218.16 711,122,132.70 39,021,729.00
Post-job welfare –
117,014,054.61 117,014,054.61
provision plan
Dismissing compensation 6,946,500.22 1,554,278.85 5,392,221.37
Total 36,455,143.76 837,649,272.77 829,690,466.16 44,413,950.37
(2) Short-term wages
In RMB
Items Opening balance Increased this period Decreased this period Closing balance
(1) Salary, bonus,
20,290,491.47 582,527,654.97 573,373,100.67 29,445,045.77
allowance and subsidy
(2) Employee welfare 13,672,012.29 13,672,012.29
(3) Social Insurance 653,471.94 53,295,126.41 53,295,126.41 653,471.94
Including: Medical
39,964,233.12 39,964,233.12
insurance
Work injury insurance 653,471.94 13,327,804.18 13,327,804.18 653,471.94
Maternity insurance 3,089.11 3,089.11
(4) Housing 6,849,633.00 58,087,975.80 58,089,735.80 6,847,873.00
(5) Union funds and staff
1,712,437.87 12,781,171.69 12,420,880.53 2,072,729.03
education fee
116
Bengang Steel Plates Co., Ltd. Interim Report 2016
Other 2,609.26 271,277.00 271,277.00 2,609.26
Total 29,508,643.54 720,635,218.16 711,122,132.70 39,021,729.00
(3) Defined contribution plans
In RMB
Items Opening balance Increased this period Decreased this period Closing balance
Basic pension fund 111,560,657.65 111,560,657.65
Unemployment insurance 5,453,396.96 5,453,396.96
Total 117,014,054.61 117,014,054.61
Other notes：
None
38. Tax payable
In RMB
Items Closing balance Opening balance
VAT 46,395,484.96 23,631,817.37
Operational tax -54,084.05 -47,954.05
Enterprise income tax 3,934,216.87 6,788,181.39
City maintenance and construction tax 7,994,340.42 2,015,344.46
Property tax 3,413,065.96 10,211,765.05
Education surtax 5,748,364.65 1,475,601.50
Others 1,716,960.95 1,119,772.63
Total 69,148,349.76 45,194,528.35
Other notes：
Nono
39. Interest payable
In RMB
Items Closing balance Opening balance
Interest of corporation bond 31,334,821.13 70,113,698.63
Short-term borrowing interests payable 173,176.05 844,988.33
Total 31,507,997.18 70,958,686.96
Material overdue interest payments:
In RMB
117
Bengang Steel Plates Co., Ltd. Interim Report 2016
Loans from Amount overdue Causation of overdue
Other notes:
40.Dividend payable
In RMB
Items Closing balance Opening balance
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
41. Other account payable.
(1) Other payables disclosed by nature
In RMB
Items Closing balance Opening balance
Deposit 3,228,383.03 3,280,020.39
Deposit 114,571,705.62 128,048,589.14
Current account 254,380,927.44 270,090,696.48
Others 41,789,921.50 43,315,398.89
Total 413,970,937.59 444,734,704.90
(2) Significant other payables ageing over one year
In RMB
Items Closing balance Unpaid/un-carry over reason
Benxi Steel (Group) Ltd. 100,084,920.41 Not cleared yet
Guangzhou Benjin Electronic &
10,088,825.00 Not cleared yet
Machinery Equipment Co., Ltd.
Total 110,173,745.41 --
Other notes
42.Divided into liability held for sale
In RMB
Items Closing balance Opening balance
Other notes：
None
118
Bengang Steel Plates Co., Ltd. Interim Report 2016
43. Non-current liabilities due in one year
(1) Non-current liabilities due in one year
In RMB
Items Closing balance Opening balance
Long-term loans due in 1 year 16,494,852.00 944,004,649.14
Long-term account payable due in 1 year 700,000,000.00 490,000,000.00
Total 716,494,852.00 1,434,004,649.14
Other notes：
None
44.Other current liability
In RMB
Items Closing balance Opening balance
Change of bond payable ：
In RMB
Overflow
The Withdraw Pay in
Face Date of Bond Issuing Opening discount Closing
Name current interest at current
value issue term amount balance amortiatio balance
issue par period
n
Other notes：
None
45. Long-term loans
（1）Long-term loans
In RMB
Items Closing balance Opening balance
Guarantee loan 1,283,949,324.24 995,919,974.09
Credit loan 1,004,240,000.00 10,000,000.00
Total 2,288,189,324.24 1,005,919,974.09
Notes ：
119
Bengang Steel Plates Co., Ltd. Interim Report 2016
46. Bond payable
(1) Bond payable
In RMB
Items Closing balance Opening balance
Corporate bond 1,492,278,859.13 1,490,352,572.75
Total 1,492,278,859.13 1,490,352,572.75
(2) Changes on bonds payable (not including other financial instrument classified as preferred stock and
perpetual capital securities of financial liabilities)
In RMB
15
1,500,000 February 1,500,000 1,490,352 -1,926,28 1,492,278
Bengang 3 years
,000.00 5, 2015 ,000.00 ,572.75 6.38 ,859.13
01
1,500,000 1,490,352 -1,926,28 1,492,278
Total -- -- -- 0.00 0.00 0.00 0.00
,000.00 ,572.75 6.38 ,859.13
(3) Statement on conditions and date of corporation bond converting to shares
(4) Statement on other financial instruments categorized as financial liabilities
Particulars about other financial instruments issued externally such as preference shares or perpetual bonds.
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.
Other Notes
The company issued bonds publicly on February 5, 2015. The face value was 1,500,000,000 yuan, and there
were 1500 million shares, with the face value per share of 100 yuan. The issuance price was 100 yuan/ share,
with a period of 3 years and the nominal interest rate of 5.17%. The value date was February 5, 2015 and the
interest payment date is February 5 in three consecutive years, ranging from 2016 to 2018. The interest is paid
annually and the principal shall be paid at a time upon the expiration.
Benxi Iron& Steel Group Co., Ltd. provides a joint liability guarantee for the corporate bond publicly issued this
time in full, unconditionally and irrevocably. The scope of guarantee includes the principle, interest, liquidated
damage, damage awards, expenses spent on actualization of creditors rights of the bonds. The term of guarantee
commences on the bond issuance date and ends in 12 months after the expiry of bonds.
120
Bengang Steel Plates Co., Ltd. Interim Report 2016
47.Long-term payable
（1）Long-term payable
In RMB
Items Closing balance Opening balance
Other notes：
48.Long-term employee salary payable
（1）List of long term payroll payable
In RMB
Items Closing balance Opening balance
（2）Set benefit plan changes
To set the present value of the benefit plan：
In RMB
Items Current occurrence amount Amount of the previous period
Plan assets：
In RMB
Items Current occurrence amount Amount of the previous period
Net assets
In RMB
Items Current occurrence amount Amount of the previous period
Notes：
49.Specific payable
In RMB
Items Opening balance Increase Decrease Closing balance Reason
Other notes：
50.Estimates liabilities
In RMB
Items Closing balance Opening balance Reason
Other notes：
121
Bengang Steel Plates Co., Ltd. Interim Report 2016
51. Deferred income
In RMB
Items Opening balance Increase Decrease Closing balance Reason
Government subsidy 413,188,000.00 16,622,000.00 396,566,000.00
Total 413,188,000.00 16,622,000.00 396,566,000.00 --
Government subsidy items involved:
In RMB
Amount
New subsidy in transferred to Asset-related or
Liability projects Opening balance Other changes Closing balance
current period non-operational income-related
income
Desulfuration Related to assets
project of 220t/h 800,000.00 400,000.00 400,000.00
furnace
MES project fund 6,880,000.00 860,000.00 6,020,000.00 Related to assets
Environment Related to assets
treatment project 540,000.00 270,000.00 270,000.00
of Benxi City
Second batch of Related to assets
Funding for
National Cleaned
1,600,000.00 400,000.00 1,200,000.00
Manufacture
Demonstration
Project
Subsidiary for Related to assets
industrial energy
control center 11,600,000.00 11,600,000.00
demonstration
project
Environment Related to assets
Pollution
17,708,000.00 2,617,000.00 15,091,000.00
Renovation
Project
Environment Related to assets
Renovation
Project and
1,680,000.00 250,000.00 1,430,000.00
Regional Basin
Environment
Protection Project
Energy-saving Related to assets
Technological
5,908,000.00 1,477,000.00 4,431,000.00
Transformation
Fiscal Reward
122
Bengang Steel Plates Co., Ltd. Interim Report 2016
Project
Cool rolling high Related to assets
strength steel 250,000,000.00 250,000,000.00
rebuilding
desulfuration Related to assets
project of 2*265
1,000,000.00 500,000.00 500,000.00
square meter
burnning line
Water treatment Related to assets
project of 2*265
3,380,000.00 1,690,000.00 1,690,000.00
square meter
burnning line
Reconstruction of Related to assets
dust remover of
60,000.00 30,000.00 30,000.00
the 360m3
burnning line
Automobile Related to assets
High-class
Electrolytic Zinc
41,040,000.00 4,104,000.00 36,936,000.00
Steel Plate
Production Line
Project
Heat recycling Related to assets
and disulfuration
16,816,000.00 2,102,000.00 14,714,000.00
project of the
burnning line
Water treatment
factory
3,000,000.00 750,000.00 2,250,000.00 Related to income
reconstruction
project
Fund for Related to assets
introducing of
4,000,000.00 4,000,000.00
overseas R&D
team
Disulfuration Related to assets
project of the 7
24,000,000.00 24,000,000.00
boilers of the
Power Plant
Waste liquid Related to assets
processing
300,000.00 50,000.00 250,000.00
project of Coke
Factory
Special fund for Related to assets
importing of
13,536,000.00 442,000.00 13,094,000.00
overseas
technologies
Benggang Related to assets
Automobile sheet
engineering 1,000,000.00 1,000,000.00
laboratory of
Engineering
123
Bengang Steel Plates Co., Ltd. Interim Report 2016
Research and Related to assets
development of
high strength
2,900,000.00 2,900,000.00
steel for third
generation
automobile
Flue gas Related to assets
desulfurization
800,000.00 100,000.00 700,000.00
project of the 360
burnning line
Special funds for Related to assets
environmental 4,640,000.00 580,000.00 4,060,000.00
protection
Total 413,188,000.00 16,622,000.00 396,566,000.00 --
Other statements
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 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
124
Bengang Steel Plates Co., Ltd. Interim Report 2016
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.
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 was completed in December 2015 and the funding was to be amortized in
the next 5 years from 2016.
13. Sintering Machine Residue Heat Usage and Desulfurization Project: According to “Notice about the third batch
125
Bengang Steel Plates Co., Ltd. Interim Report 2016
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 is now under implementation.
2)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 is now under implementation.
3)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 is now under implementation.
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 is now under implementation.
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 is now under implementation.
6) 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.
7) 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 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. This project is now under implementation.
2) According to “Note about the Appropriation of the Provincial Special Funding for Introduction of Overseas
126
Bengang Steel Plates Co., Ltd. Interim Report 2016
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. In accordance with the Issuance of Notice on the Basic Construction of the Third Batch of Project Investment
Plan in Benxi 2014 (No. 339 of BFG[2014]), Benxi auto sheet engineering labaratory project was applied and the
company received a subsidy of 1 million yuan from Benxi Bureau of Finance, This project is now under
implementation.
20. In accordance with the Notice on Project Approval of of the First Batch of Scientific Technology Plan in
Liaoning 2015(Liaoning Scientific Technology Office), the R&D project of third-generation auto high-strength
steel was submitted and the company received a subsidy of 2.9 million yuan from Liaoning Finance Department,
This project is now under implementation.
21. In accordance with the Issuance of Notice on Blue Sky Engineering Project Capital Plan 2014 (No.20 of
BCF[2015]), the 360 sintering machine flue gas desulfurization project in iron works was submitted and the
company received the project asset of 1 million yuan from Benxi Bureau of Finance. The project was completed
in December 2014 and the funding was to be amortized in the next 5 years from 2015.
22. In accordance with the Special Environmental Protection Funds in Benxi 2014(No. 104 of BHF[2014]) special
environmental protection funds were applied, and the company received a subsidy of 5.8 million yuan from Benxi
Bureau of Finance. Wherein, 1 million was used for disposing the smoke dust produced from 3 sets of 220 T/H
coal-fired boilers in the power station, and the project was completed in 2014 and since 2015, it was transformed
into profit and loss in 5 years; 1.8 million yuan was used for the low-nitrogen combustion transformation for one
set of 220 T/H coal-fired boiler, The project was completed in December 2014 and the funding was to be
amortized in the next 5 years from 2015.while the rest 3 million yuan was used for transforming the fuel dust
remover in the second sintering plant. The project was completed in December 2014 and the funding was to be
amortized in the next 5 years from 2015.
52.Other non-current liability
In RMB
Items Closing balance Opening balance
Other notes：
53. Share capital
In RMB
Changed（+，-）
Balance in Capitalization Balance in
Items Issuance of
year-begin Bonus shares of public Other Subtotal year-end
new share
reserve
Total of capital 3,136,000,000. 3,136,000,000.
shares 00 00
Other notes：
54.Other equity instruments
Other notes：
127
Bengang Steel Plates Co., Ltd. Interim Report 2016
55. Capital reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Capital premium 8,998,928,073.23 8,998,928,073.23
Other capital reserves 115,917,468.82 115,917,468.82
Total 9,114,845,542.05 9,114,845,542.05
Notes ：
56. Treasury stock
Notes：
57.Other comprehensive income
In RMB
Amount of current period
Less ： After - ta
Amount for t Previously recognized x attribut
Year-beginni After - tax attrib
Items he period bef in profit or loss in oth Less：Income able to t
ng balance utable to minorit
ore income ta er comprehensive inc tax he paren
y shareholders
x ome t compa
ny
Other notes：
58. Special reserves
In RMB
Items Opening balance Increased this period Decreased this period Closing balance
Safety expenses 393,372.05 14,205,775.40 8,352,210.16 6,246,937.29
Total 393,372.05 14,205,775.40 8,352,210.16 6,246,937.29
Other remarks: Statement on change and reasons of the period.
Safety expenses are provided according to the document CAIQI No.[2012]16.
59. 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
128
Bengang Steel Plates Co., Ltd. Interim Report 2016
reserves
Total 961,105,529.85 961,105,529.85
Notes ：
60. Retained profit
In RMB
Items Current term Previous term
Opening balance of retained profits before
-1,278,244,071.93 2,172,180,473.24
adjustments
Opening balance of retained profits after
-1,278,244,071.93 2,172,180,473.24
adjustments
Add: Net profit attributable to owners of the
182,538,176.32 128,007,136.26
parent company
Dividend payable for ordinary shares 156,800,000.00
Retained profit at the end of term -1,095,705,895.61 2,143,387,609.50
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected
beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits
are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
61. Operating income and operating cost
In RMB
Occurred current term Occurred in previous term
Items
Revenue Cost Revenue Cost
Major business 11,890,962,256.28 10,286,817,465.00 15,440,544,823.29 14,122,473,154.22
Other business 738,622,313.07 627,364,837.04 904,370,337.89 779,076,196.35
Total 12,629,584,569.35 10,914,182,302.04 16,344,915,161.18 14,901,549,350.57
129
Bengang Steel Plates Co., Ltd. Interim Report 2016
62. Business tax and surcharge
In RMB
Items Occurred current term Occurred in previous term
Operational tax 24,297.03 16,669.64
City maintenance and construction tax 15,218,000.34 18,014,215.00
Education surtax 11,090,597.39 13,079,642.69
Total 26,332,894.76 31,110,527.33
Other notes：
63. Sales expenses
In RMB
Items Occurred current term Occurred in previous term
Outsourced transportation 282,160,883.00 328,006,061.57
Port fee 90,759,527.08 87,479,749.54
Import & export agency fee 28,513,161.47 24,745,056.29
Packaging 2,761,636.55 4,584,561.83
Wage and remuneration 10,503,082.85 10,973,035.26
Others 15,362,772.19 22,560,814.65
Total 430,061,063.14 478,349,279.14
Other notes：
64. Administrative expenses
In RMB
Items Occurred current term Occurred in previous term
Wage and remuneration 76,395,221.96 77,177,155.64
Maintaining 92,167,672.38 104,720,803.04
Taxes 44,353,333.71 42,079,539.74
Land using rights 28,257,238.10 28,713,000.00
Depreciation 13,236,195.97 14,204,850.77
Social insurance 20,539,733.05 21,520,775.83
Sewage expense 5,866,430.00 9,425,948.00
Housing fund 5,022,412.40 5,591,290.00
Heating 4,103,468.74 2,453,593.71
Business reception expenses 1,333,401.18 2,310,495.63
130
Bengang Steel Plates Co., Ltd. Interim Report 2016
Amortizing of intangible assets 2,969,528.58 2,969,528.59
Transportation 290,256.00 958,865.94
Rental 693,067.82 1,034,911.12
Others 56,726,758.59 64,430,289.44
Total 351,954,718.48 377,591,047.45
Other notes：
65. Financial expenses
In RMB
Items Occurred current term Occurred in previous term
Interest expense 396,101,669.29 429,696,201.70
Less: Incoming interests 12,694,596.80 22,675,836.00
Exchange gains/losses 175,055,105.02 -36,987,636.90
Others 28,205,647.68 21,366,898.57
Total 586,667,825.19 391,399,627.37
Remarks:
Financial expenses increased by RMB195,268,197.82 (49.89%) from the previous period, which was caused by
Increase of exchange loss in the period.
66. Asset impairment loss
In RMB
Items Occurred current term Occurred in previous term
I. Loss for bad debts -1,880,998.86 -6,196,664.93
II. Impairment of investories 56,692,510.95
Total -1,880,998.86 50,495,846.02
Other notes：
67.Gains from changes of fair value
In RMB
Source Occurred current term Occurred in previous term
Other notes：
68. Investment income
In RMB
131
Bengang Steel Plates Co., Ltd. Interim Report 2016
Items Occurred current term Occurred in previous term
Bank short-term financial products revenue 6,584,315.11
Total 6,584,315.11
The yield of banks financial products is actually the revenue earned by companies through buying the
preservation-based financial products.
69. Non-operating income
In RMB
Carried to current contingent
Items Occurred current term Occurred in previous term
gain/loss
Total of Non-current assets
2,120,458.89 2,927,761.15 2,120,458.89
disposal income
Including: Fixed assets disposal
2,120,458.89 2,927,761.15 2,120,458.89
income
Gains from debt reorganization 4,527,416.04 6,439,698.87 4,527,416.04
Government subsidies 16,622,000.00 31,328,000.00 16,622,000.00
Other 926,794.62 1,527,544.44 926,794.62
Total 24,196,669.55 42,223,004.46 24,196,669.55
Government subsidies recorded into current profits and losses：
In RMB
Whether the
impact of Asset-related
Whether
Issuing Issuing subsidies on Occurred Occurred in or
Items Type special
subject reason the current current term previous term income-relate
subsidies
profit and d
loss
Deferred
16,622,000.0 11,828,000.0 Assets to
revenue
0 0 related
transfer
Award fund
for closing
19,500,000.0 Assets to
down
0 related
outdated
production
Government
financing
Tax returns
16,622,000.0 31,328,000.0
Total -- -- -- -- -- --
0 0
132
Bengang Steel Plates Co., Ltd. Interim Report 2016
Other notes：
70. Non-operating expense
In RMB
Carried to current contingent
Items Occurred current term Occurred in previous term
gain/loss
Total of loss from disposal of
105,474.99 20,661,325.20 105,474.99
non-current assets
Incl. Loss from disposal of
105,474.99 20,661,325.20 105,474.99
fixed assets
Total 105,474.99 20,661,325.20 105,474.99
Other notes：
71. Income tax expense
(1) Lists of income tax expense
In RMB
Items Reporting period Same period of last year year
Current income tax expense 3,949,704.94 14,579,310.17
Deferred income tax expense 136,112,516.35 -16,998,515.09
Total 140,062,221.29 -2,419,204.92
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Reporting period
Total profits 346,357,959.16
Income tax expense calculated in accordance with statutory or
3,949,704.94
applicable tax rates
Influence of deductible losses of deferred income tax assets
136,112,516.35
derecognized used in previous period
Income tax expense 140,062,221.29
Other notes
72.Other comprehensive income
Details can be seen in notes.
73. Notes of statement of cash flows
(1) Cash received related to other operating activities
In RMB
133
Bengang Steel Plates Co., Ltd. Interim Report 2016
Items Reporting period Same period of last year
Of which：Current account and advance
70,468,435.19 25,782,371.73
foranother
Interest incme 12,694,596.80 22,675,836.00
Special income
Non –operating income 926,794.62 19,500,000.00
Other 238,169.68 557,892.02
Total 84,327,996.29 68,516,099.75
Notes：
(2) Other cash paid relevant to operating activities
In RMB
Items Reporting period Same period of last year
Of which：Current account and advance
322,978,268.19 457,240,106.06
foranother
Administrative expenses 40,919,405.31 43,412,221.91
Sales expenses 5,628,363.93 4,514,247.62
Bank charges 28,205,647.68 21,366,898.57
Other 2,128,404.62 2,499,673.65
Total 399,860,089.73 529,033,147.81
Notes ：
(3) Other cash received relevant to investment activity
In RMB
Items Reporting period Same period of last year
Notes
（4）Other Cash payable related to investment activities
In RMB
Items Amount of current period Amount of previous period
Notes：
（5）Other Cash received related to Financing activities
In RMB
Items Amount of current period Amount of previous period
134
Bengang Steel Plates Co., Ltd. Interim Report 2016
Financing Leasing 210,000,000.00
Total 210,000,000.00
Notes ：
（6）Other Cash payable related to Financing activities
In RMB
Items Amount of current period Amount of previous period
Notes ：
74. Supplementary information to cash flow statement
（1）Supplementary information to cash flow statement
In RMB
Supplementary materials Reporting period Last period
1. Reconciliation of net profit to net cash
-- --
flows generated from operating activities
Net profit 206,295,737.87 144,984,682.59
Add： Asset impairment provision -1,880,998.86 50,495,846.02
Fixed asset depreciation 1,015,556,593.59 913,520,540.47
Amortizing of intangible assets 2,969,528.58 2,969,528.59
Loss from disposal of fixed assets, intangible
assets, and other long-term assets (“-“ for -2,014,983.90 -17,733,564.05
gains
Financial expenses (“-“ for gains) 586,667,825.19 391,399,627.37
Investment losses (“-“ for gains) -6,584,315.11
Decrease in deferred income tax assets
136,112,516.35 -16,998,515.09
(gains: negative)
Decrease in inventory (gains: negative) -902,878,201.17 -745,030,608.94
Decrease in accounts receivable from
32,967,723.56 -883,917,194.53
operating activities (gains: negative)
Increase in payables from operating
1,316,981,622.31 -1,711,237,001.21
activities (decrease: negative)
Net cash flows generated from operating
2,390,777,363.52 -1,878,130,973.89
activities
2. Major investment and financing activities
-- --
that do not involve cash receipts:
135
Bengang Steel Plates Co., Ltd. Interim Report 2016
3. Net change in cash and cash equivalents: -- --
Closing balance of cash 7,378,445,456.46 3,520,088,380.34
Less: Opening balance of cash 4,612,782,772.98 9,327,034,030.07
Net increase in cash and cash equivalents 2,765,662,683.48 -5,806,945,649.73
(2) Net cash paid for subsidiary obtained in Period
In RMB
Amount
Including ： --
Including： --
Including： --
Other notes：
(3) Net cash received from disposal of subsidiary in Period
In RMB
Amount
Including ： --
Including： --
Including： --
Other notes：
(4) Cash and cash equivalent
In RMB
Items Ending balance Beginning balance
I.Cash 7,378,445,456.46 4,612,782,772.98
Including: Cash on hand 78,640.40 72,220.66
Bank deposits available on demand 7,378,366,816.06 4,612,384,032.13
Other monetary funds available on demand 326,520.19
III. Balance of cash and cash equivalents at
7,378,445,456.46 4,612,782,772.98
end of term
Other notes：
75.Notes on items of changes of owner’s equity
Name and adjusted amount on “other” at balance of year-end of last year:
136
Bengang Steel Plates Co., Ltd. Interim Report 2016
76.Assets with ownership or right-to-use restricted
In RMB
Items Closing book value Restricted reason
Notes payab Its used to issue notes
Monetary capital 390,764,251.47
payable and purchase foreign exchange
Notes receivable 770,311,374.10 Issue notes payable
Fixed assets 28,440,000.00 Mortgage loans
Account receivable and order 1,102,740,000.00 Loans
Total 2,292,255,625.57 --
Other notes：
77. Foreign currency monetary items
（1）Foreign currency monetary items
In RMB
Ending balance in foreign Ending balance translated to
Items Exchange rate at the year-end
currency RMB
Monetary capital -- -- 5,009,149,879.18
Of which：USD 524,945,517.14 6.6312 3,481,018,713.26
Euro 207,087,347.40 7.375 1,527,269,187.08
HKD 1,008,516.26 0.8547 861,978.85
Long-term loan -- -- 1,866,198,260.14
Of which：USD 150,000,000.00 6.6312 994,680,000.00
Euro 116,145,049.51 7.375 856,569,740.14
JPY 231,760,000.00 0.0645 14,948,520.00
Short –term loan 7,230,082,800.00
Of which：USD 989,000,000.00 6.6312 7,230,082,800.00
Non-current liability due to 1
1,494,852.00
year
Of which: USD
Euro
JPY 23,176,000.00 0.0645 1,494,852.00
Other notes：
137
Bengang Steel Plates Co., Ltd. Interim Report 2016
(2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place,
recording currency and selection basis, if there are changes into recording currency, shall also disclose the
reason.
□ Applicable √Not applicable
78. Hedging
Disclose hedging items by type of hedging as well as relevant arbitrage tool, qualitative and quantitative
information for arbitrage project:
79.Other
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
In RMB
Income of Net profits of
Time and Cost of Way to gain Recognition acquiree acquiree
Name of Proportion of
place of gaining the the stock Purchase date basis of during the during the
acquiree stock rights
gaining stock rights rights purchase date pruchase date pruchase date
to period-end to period-end
Other notes:
(2) Combined cost and goodwill
In RMB
Combined cost
Note to determination method, consideration and changes of fair value of combined cost:
The main formation reason for the large goodwill:
Other notes：
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Fair value on purchase date Book value on purchase date
The recognition method of the fair value of identifiable assets and liabilities
Contingent liability of acquiree undertaken by business merger
Other Notes ：
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value measured
138
Bengang Steel Plates Co., Ltd. Interim Report 2016
again
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger
and gaining the control during the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of
liabilities of the acquiree at acquisition date or closing period of the merge
(6) Other notes
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
In RMB
Income from Net profits
the from the
Recognition Income Net profits
period-begin reporting
Combined Proportion of Combination basis of during the during the
Basis to the period to the
party the profits date combination period of period of
combination combination
date comparison comparison
date of the date of the
combination combination
Other notes：
（2）Combination cost
In RMB
Combination cost
Note to contingent consideration or other changes:
Notes:
(3) The book value of the assets and liabilities of the combined party at combining date
In RMB
Combination date Period-end of last period
Contingent liabilities of the combined party undertaken in combination
Notes:
139
Bengang Steel Plates Co., Ltd. Interim Report 2016
3.Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of
the listed companies whether constituted a business and its basis, the determination of the combination costs, the
amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √ No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation)
and relevant information:
The scope of the consolidated financial statements of the current period has been added the newly established
subsidiaries of Benxi Bengang Iron and Steel Sales Co., Ltd and Shenyang Bengang Metallurgy Technology Co.,
Ltd.
6.Other
IX. Equity in other entities
(1) Equity in subsidiaries
1. Constitution of enterprise group
Name of the Principal place Registered Nature of Shareholding ratio Acquiring
subsidiaries of business address business Direct Indirect method
Business
Xiamen Bengang
combination
Steel Sales Co., Xiamen Xiamen Sales 100.00%
under common
Ltd.
control
Business
Wuxi Bengang
combination
Steel Sales Co., Wuxi Wuxi Sales 100.00%
Ltd. under common
control
140
Bengang Steel Plates Co., Ltd. Interim Report 2016
Business
Tianjin Bengang
combination
Steel Trading Co., Tianjin Tianjin Sales 100.00%
Ltd. under common
control
Business
Nanjing Bengang
combination
Material Sales Co., Nanjing Nanjing Sales 100.00%
Ltd. under common
control
Business
Yantai Bengang
combination
Steel Sales Co., Yantai Yantai Sales 100.00%
Ltd. under common
control
Harbin Bengang
Steel & Iron Sales Harbin Harbin Sales 100.00% Establishment
Co., Ltd.
Changchun
Bengang Steel
Changchun Changchun Sales 100.00% Establishment
&Iron Sales Co.,
Ltd.
Guangzhou Benxi
Iron & Steel Guangzhou Guangzhou Sales 100.00% Establishment
Trading Co., Ltd
Harbin Bengang
Steel & Iron Sales Harbin Harbin Sales 100.00% Establishment
Co., Ltd.
Changchun Business
Bengang Steel combination
Changchun Changchun Sales 100.00%
&Iron Sales Co., under common
Ltd.
control
Guangzhou Benxi
Iron & Steel Guangzhou Guangzhou Sales 65.00% Establishment
Trading Co., Ltd
Bengang Puxing
Cold-rolled Sheet Benxi Benxi Manufacturing 75.00% Establishment
Co., Ltd.
Benxi Bengang
Steel Sale Co., Benxi Benxi Sales 100.00% 设立
Ltd.
Shenyang
Bengang
Metallurgy Shenyang Shenyang Sales 100.00% 设立
Technology
Co., Ltd.
Notes: other non-current liabilities shall belong to equity of SIH Divestiture Assets. Through the above Contract
on Entrusted Management of Divestiture Assets and Liabilities, the Company has actually controlled SX
141
Bengang Steel Plates Co., Ltd. Interim Report 2016
Companys Divestiture Assets which become a business entity with control rights by entrusted business mode.
Basis of determine whether the Company is the agent or the principal:：
Other notes：
(2) Significant not wholly owned subsidiary
In RMB
The profits and losses Declaring dividends Balance of minority
Shareholding proportion
Name of the subsidiary arbitrate to the minority distribute to minority shareholder at closing
of minority shareholder
shareholders shareholder period
Bengang Puxing
Cold-rolled Sheet Co., 25.00% 24,852,288.44 500,598,561.14
Ltd.
Dalian Benruitong
Automobile Material 35.00% -1,094,726.89 28,152,049.86
Eechnology Co., Ltd.
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Other notes：
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Name of Closing balance Opening balance
the Non-curr Non-cur Non-curr Non-cure
Current Total Current Total Current Total Current Total
subsidiar ent ent ent nt
assets assets liabilities liabilities assets assets liabilities liabilities
y assets liability assets liability
Bengang
Puxiang
2,189,12 2,417,53 4,606,65 2,604,26 2,604,26 1,467,41 2,567,81 4,035,22 2,132,23 2,132,23
Cold-roll
1,603.00 4,036.42 5,639.42 1,394.85 1,394.85 1,809.82 1,403.90 3,213.72 8,122.92 8,122.92
ed Sheet
Co., Ltd.
Dalian
Benruito
ng
Automob
283,436, 165,354, 448,790, 368,356, 368,356, 191,638, 168,790, 360,429, 276,866, 276,866,
ile
231.25 448.34 679.59 251.42 251.42 815.72 370.49 186.21 966.92 966.92
Material
Eechnolo
gy Co.,
Ltd.
In RMB
142
Bengang Steel Plates Co., Ltd. Interim Report 2016
Reporting period Same period of last year
Name of the Total Total
Operation Operating Operation Operating
subsidiary Net profit comprehensi Net profit comprehensi
revenue cash flow revenue cash flow
ve income ve income
Bengang
Puxiang
2,592,071,40 99,409,153.7 99,409,153.7 58,017,011.9 2,906,688,92 74,708,411.1 74,708,411.1 1,003,284,38
Cold-rolled
0.46 7 7 7 8.01 0 0 0.53
Sheet Co.,
Ltd.
Dalian
Benruitong
Automobile 137,623,373. -12,791,423.7 355,356,585. 24,288,981.7
-3,127,791.12 -3,127,791.12 -4,855,875.58 -4,855,875.58
Material 15 9 83 6
Eechnology
Co., Ltd.
Other notes：
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
Other notes：
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of
the parent company
In RMB
Other notes
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Holding percentage(%) Accounting
Main operating Nature of treatment of the
Name Registration place
place business Directly Indirectly investment of
joint venture or
143
Bengang Steel Plates Co., Ltd. Interim Report 2016
associated
enterprise
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
(2) Main financial information of significant joint venture
In RMB
Closing balance/ reporting period Opening balance /last period
Other notes
(3) Main financial information of significant associated enterprise
In RMB
Closing balance/ reporting period Opening balance /last period
Other notes
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Closing balance/ reporting period Opening balance /last period
Joint venture: -- --
The total of following items according to the
-- --
shareholding proportions
Associated enterprise: -- --
The total of following items according to the
-- --
shareholding proportions
Other notes
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds
to the Company
(6) The excess loss of joint venture or associated enterprise
In RMB
The cumulative recognized The derecognized losses or the The noncumulative
Name
losses in previous share of net profit in reporting unrecognized losses in reporting
144
Bengang Steel Plates Co., Ltd. Interim Report 2016
accumulatively derecognized period period
Other notes
(7) The unrecognized commitment related to joint venture investment
(8) Contingent liabilities related to joint venture or associated enterprise investment
4. Significant common operation
Proportion /share portion
Name Main operating place Registration place Nature of business
Directly Indirectly
Notes to holding proportion or share portion in common operation different from voting proportion:
Naught Basis of common operation as a single entity, classify as common operation Naught
Other notes:
5. Equity of structure entity not including in the scope of consolidated financial statements
Related notes to structure entity not including in the scope of consolidated financial statements
6.Other
X. The risk related financial instruments
(1) Credit risk
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
145
Bengang Steel Plates Co., Ltd. Interim Report 2016
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.
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
table includes both interest and principal cash flows.
In RMB0000
Items Closing balance Total
USD Euro HKD JPY
Assets 348,101.87 152,726.92 86.20 500,914.99
Liability 822,476.28 85,656.97 1,494.85 909,628.11
The table below shows the sensitivity analysis of RMB vs other currencies when RMB deprecated or appreciated
by 5% over other currencies under the assumption that other variables remain the same. 5% is the sensitivity rate
used by the management for internal report of currency risk and it represents the estimation of the management
over the possible change of foreign currency. Sensitivity analysis only includes the monetary items measured by
foreign currency unpaid and will be adjusted at the year-end by 5%. The positive figures reflect the increase of
profit by 5% and the negative figures indicate the reduction of profit.
In RMB0000
Items Closing balance Total
Impact on USD Impact on EURO Impact on HKD Impact on JPY
146
Bengang Steel Plates Co., Ltd. Interim Report 2016
Appreciation 17,789.04 -2,515.12 -3.23 56.06 15,326.74
by5%
Depreciation by -17,789.04 2,515.12 3.23 -56.06 -15,326.74
5%
(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.
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 table
includes both interest and principal cash flows.
In RMB0000
Items Closing balance
Within 1 year 1-2 years 2-5 years Over 5 years Total
Trade and Other payables 997,316.48 102.87 242.31 208.26 997,869.91
Loans 1,889,915.97 99,468.00 45,771.95 83,578.98 2,118,734.91
Bonds payable 7,755.00 157,755.00 - - 165,510.00
Total 2,894,987.45 257,325.87 46,014.26 83,787.24 3,282,114.82
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Items Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
II. Inconsistent fair value
-- -- -- --
measurement
147
Bengang Steel Plates Co., Ltd. Interim Report 2016
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
3. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 2
4. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion
happens among consistent fair value measurement items at different levels
7. Changes in the valuation technique in the current period and the reason for change
8. Fair value of financial assets and liabilities not measured at fair value
9.Other
XII. Related party transactions
(1) Details of parent company
Name of parent Registered Share proportion
Place of Registry Nature of Business Voting rights (%)
company capital (%)
Benxi Steel (Group)
Benxi Manufacturing 5.369 billion 77.97% 77.97%
Co., Ltd.
Bengang Group Co.,
Benxi Manufacturing 18 billion 77.97% 77.97%
Ltd.
Notes：
The ultimate controlling party of the Company is the State-owned Assets Supervision and Administration
Commission of Liaoning Province.
Other notes：
2. Subsidiaries of the Company
For details of subsidiaries of the Company please refer to Note 7 “Equity in other entities”.
3. Information on the joint ventures and associated enterprises of the Company
See details to Notes.
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
148
Bengang Steel Plates Co., Ltd. Interim Report 2016
Name Relationship
Notes
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 Stainless Cool-rolling (Dandong) Co., Ltd. Same parent
Benxi Beiying Steel & Iron (Group) 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
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 high and new drilling tool manufacturing 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
Tianjin Bengang Steel Plate Processing and Delivery Co., Ltd. Both under Bengang Group
Suzhou Bengang Industrial Co., Ltd Sharing Company
149
Bengang Steel Plates Co., Ltd. Interim Report 2016
Shanghai Bengang Steel Sales Ltd. Both under Bengang Group
Benxi Steel & Iron Group Hospital Both under Bengang Group
Benxi Steel Group Finance Co., Ltd. Same parent
Liaoning Hengyi Financing Leasing Co.,Ltd. Same parent
Other notes
5. Related transactions
(1) Related party transactions of purchasing goods and services
Company as the purchaser
In RMB
Contents of related Trading limit Whether over the
Related party Current period Last period
party transactions approved trading limit(Y/N)
Benxi Steel (Group)
Maintaining 142,914,791.40 320,000,000.00 No 150,020,402.85
Co., Ltd.
Benxi Steel (Group)
Land rent 28,257,238.10 No 28,713,000.00
Co., Ltd.
Bengang Stainless
Cool-rolling Products in stock 197,900.00 10,000,000.00 No 301,149.02
(Dandong) Co., Ltd.
Benxi Steel (Group)
Labor service 8,012,301.00 No 3,346,106.00
Mining Co., Ltd.
Benxi Steel (Group)
Raw materials 1,930,519,957.48 5,000,000,000.00 No 2,693,692,233.97
Mining Co., Ltd.
Benxi Steel (Group)
Transportation 1,442,630.61 No 72,000.00
Mining Co., Ltd.
Benxi Steel (Group)
Metallurgy Raw materials 57,261,826.00 200,000,000.00 No 63,266,548.75
Residues Co., Ltd.
Benxi Steel (Group)
Steel Process and Process fee 867,249.53 8,000,000.00 No 845,234.20
Logistics Co., Ltd.
Benxi Steel (Group)
Real-estate
Raw materials 36,885,463.89 80,000,000.00 No 39,045,563.54
Development Co.,
Ltd.
Benxi Steel (Group)
Spare parts 54,201,883.14 350,000,000.00 No 68,669,575.05
Machinery Co., Ltd.
Benxi Steel (Group)
Repairing services 5,302,423.00 No 1,325,019.00
Machinery Co., Ltd.
Benxi Steel (Group)
Construction Co., Spare parts 7,635,945.10 No 193,488.82
Ltd.
Benxi Steel (Group)
Construction Co., Engineering fee 122,809,324.62 800,000,000.00 No 145,971,693.13
Ltd.
Benxi Steel (Group)
Repairing services 41,930,655.47 No 39,425,312.47
Construction Co.,
150
Bengang Steel Plates Co., Ltd. Interim Report 2016
Ltd.
Benxi Steel (Group)
Construction Co., Raw materials 3,726,235.00 No 2,170,267.40
Ltd.
Benxi Steel (Group)
Construction Co., Transportation 1,392,792.26 No 2,073,764.37
Ltd.
Benxi Steel (Group)
Industrial
Spare parts 12,098,061.54 No 1,320,790.65
Development Co.,
Ltd.
Benxi Steel (Group)
Industrial
Raw materials 118,140,441.19 400,000,000.00 No 115,178,532.12
Development Co.,
Ltd.
Benxi Steel (Group)
Industrial
Repairing services 7,004,363.38 No 11,946,566.34
Development Co.,
Ltd.
Benxi Steel (Group)
Industrial
Transportation 2,870,362.41 No 3,365,404.99
Development Co.,
Ltd.
Benxi Steel (Group)
Industrial
Project payment 630,100.00 No 75,675.68
Development Co.,
Ltd.
Benxi Steel (Group)
Construction & Material and parts 4,131,446.44 No 2,622,245.20
Repairing Co., Ltd.
Benxi Steel (Group)
Construction & Engineering 28,166,151.94 250,000,000.00 No 17,998,535.63
Repairing Co., Ltd.
Benxi Steel (Group)
Construction & Repairing 20,660,206.00 No 8,415,964.51
Repairing Co., Ltd.
Bengang
Electronics Co., Raw materials 53,938,969.16 200,000,000.00 No 51,268,818.40
Ltd.
Bengang
Electronics Co., Engineering 1,429,583.24 No 1,729,641.87
Ltd.
Bengang
Electronics Co., Repairing 4,427,487.00 No 7,479,548.00
Ltd.
Benxi Steel (Group)
Drilling Tools Co., Parts 263,037.74 10,000,000.00 No 153,200.60
Ltd.
Benxi Steel New
Business Labour security
1,183,634.68 12,000,000.00 No 1,356,452.00
Development Co., fee
Ltd.
151
Bengang Steel Plates Co., Ltd. Interim Report 2016
Liaoning
Metallurgy Spare parts 7,065,509.18 15,000,000.00 No 7,282,031.36
Technician College
Bengang Group
International Commission 28,513,161.47 No 24,745,056.29
Trading Ltd.
Bengang Group
International port surcharge 103,016,500.03 350,000,000.00 No 118,981,516.95
Trading Ltd.
Benxi Steel (Group)
Information &
Spare parts 14,300,186.79 No 7,625,775.27
Automatic Tech.
Co., Ltd.
Benxi Steel (Group)
Information &
Repairing services 11,808,973.00 70,000,000.00 No 4,807,474.00
Automatic Tech.
Co., Ltd.
Benxi Steel (Group)
Thermal Power
Heating fee 6,273,973.39 20,000,000.00 No 6,120,490.96
Development Co.,
Ltd.
Benxi Steel (Group)
Thermal Power
Raw materials 33,835.74 No 30,756.24
Development Co.,
Ltd.
Benxi Steel (Group)
Engineering fee 4,463,442.91 50,000,000.00 No 3,333,396.23
Designing Institute
Benxi Beiying Steel
& Iron (Group) Co., Raw materials 2,775,256,599.12 8,000,000,000.00 No 2,881,760,228.19
Ltd.
Benxi Beiying Steel
& Iron (Group) Co., Energy Power 186,873,654.59 No 182,465,471.27
Ltd.
Benxi Beiying Steel
& Iron (Group) Co., Transportion 3,910,293.80 No 3,419,284.54
Ltd.
Benxi Beiying Steel
& Iron (Group) Co., Service 26,988,500.01 No 27,421,485.26
Ltd.
Benxi Beiying Steel
& Iron (Group) Co., Spare parts 5,546,327.45 No 6,548,202.42
Ltd.
Liaoning Hengtong
Raw materials and
Metallurgy 40,450,852.53 150,000,000.00 No 55,764,968.30
parts
Equipment Co., Ltd.
Liaoning Hengtai
Raw materials and
Heavy Machine 3,347,989.41 60,000,000.00 No 15,708,326.80
parts
Co., Ltd.
Liaoning Hengtai
Repairing and
Heavy Machine 7,594,926.00 No 8,823,963.14
service
Co., Ltd.
Bengang Group Property Fee 422,750.00 10,000,000.00 No
152
Bengang Steel Plates Co., Ltd. Interim Report 2016
Co., Ltd.
Total 5,924,169,936.73 16,365,000,000.00 No 6,816,881,161.78
Selling of goods and services
In RMB
Subjects of the related
Related parties Occurred current term Occurred in previous term
transactions
Bengang Electronics Co., Ltd. Power supply 506,435.79 78,293.74
Benxi Beiying Steel & Iron
Material and parts 48,003,943.30 19,700,091.10
(Group) Co., Ltd.
Benxi Beiying Steel & Iron
Products 2,200,079.70 3,378,802.77
(Group) Co., Ltd.
Benxi Beiying Steel & Iron
Power supply 49,331,879.14
(Group) Co., Ltd.
Benxi Steel (Group) Real-estate
Power supply 477,081.15 705,737.19
Development Co., Ltd
Benxi Steel (Group) Steel
Power supply 288,813.78 444,453.67
Process and Logistics Co., Ltd.
Benxi Steel (Group) Steel
Goods 42,000,927.99 141,670,736.20
Process and Logistics Co., Ltd.
Benxi Steel (Group) Machinery
Goods 6,053,249.23 839,738.62
Co., Ltd.
Benxi Steel (Group) Machinery
Power supply 9,179,055.96 10,701,410.40
Co., Ltd.
Benxi Steel (Group) Machinery
Raw materials and parts 1,514,608.74 4,051,183.56
Co., Ltd.
Benxi Steel (Group)
Power supply 2,455,519.74 2,884,649.08
Construction Co., Ltd.
Benxi Steel (Group)
Raw materials and parts 40,563,514.42 49,098,480.69
Construction Co., Ltd.
Benxi Steel (Group) Mining
Power supply 361,479,232.83 373,787,318.32
Co., Ltd.
Benxi Steel (Group) Mining
Raw materials and parts 41,615,621.07 43,619,274.00
Co., Ltd.
Benxi Steel (Group) Mining
Freight income 4,362,538.55 4,409,416.20
Co., Ltd.
Benxi Steel (Group) Thermal
Power supply 19,598,496.83 20,895,927.80
Power Development Co., Ltd.
Benxi Steel (Group) Thermal
Raw materials and parts 5,333,835.74 4,914,186.95
Power Development Co., Ltd.
Benxi Steel (Group) Thermal
Freight income 82,818.57 59,129.25
Power Development Co., Ltd.
Benxi Steel (Group) Industrial
Power supply 3,316,373.17 4,233,719.89
Development Co., Ltd.
Benxi Steel (Group) Industrial
Goods 126,431.04
Development Co., Ltd.
Benxi Steel (Group) Industrial Raw materials and parts 28,143,989.05 24,081,669.68
153
Bengang Steel Plates Co., Ltd. Interim Report 2016
Development Co., Ltd.
Benxi Steel (Group)
Information and Automatic Power supply 100,709.65
Tech. Ltd.
Benxi Steel (Group)
Construction & Repairing Co., Power supply 477,947.47 561,036.72
Ltd.
Benxi Steel (Group)
Construction & Repairing Co., Raw materials and parts 1,141,388.99
Ltd.
Benxi Steel (Group) Metallurgy
Power supply 1,056,102.39 2,074,983.11
Residues Co., Ltd.
Benxi Steel (Group) Metallurgy
Raw materials and parts 10,221,213.07 18,338,528.40
Residues Co., Ltd.
Benxi Steel (Group) Metallurgy
Freight income 4,319.92 2,357.15
Residues Co., Ltd.
Benxi Steel (Group) Metallurgy
Goods 1,553,826.03
Residues Co., Ltd.
Benxi Steel (Group) Co., Ltd. Power supply 35,259,836.35 33,605,322.93
Benxi Steel (Group) Co., Ltd. Raw materials and parts 3,371,111.95 3,576,864.39
Benxi Steel New Business
Power supply 165,240.02 190,128.89
Development Co., Ltd.
Dalian Boluole Steel Tube Ltd. Goods 1,532,438.22 2,906,516.56
Liaoning Bengang Steel & Iron
Goods 92,983,672.54 339,106,694.32
Trading Co., Ltd.
Benxi Steel & Iron Group
Power supply 48,288.52
Hospital
Liaoning Hengtong Metallurgy
Power supply 8,449,073.80 7,482,560.51
Equipment Co., Ltd.
Liaoning Hengtong Metallurgy
Raw materials and parts 6,514,862.48 7,225,915.11
Equipment Co., Ltd.
Liaoning Hengtong Metallurgy
Goods 8,109,275.13
Equipment Co., Ltd.
Bengang Stainless Cool-rolling
Raw materials and parts 784,414.41
(Dandong) Co., Ltd.
Bengang Stainless Cool-rolling
Goods 1,217,061.50
(Dandong) Co., Ltd.
Suzhou Bengang Industry Co.,
Goods 96,985,025.50 105,508,383.64
Ltd.
Benggang Group Finance Co.,
Power supply 8,150.41
Ltd.
Benggang Group Co., Ltd. Power supply 28,820.54
Total 934,645,748.77 1,232,134,986.75
Notes
154
Bengang Steel Plates Co., Ltd. Interim Report 2016
（2）Related trusteeship/contract
Lists of related trusteeship/contract：
In RMB
Name of the Name of the Income
entruster/contract entrustee/contract Type Initial date Due date Pricing basis recognized in the
ee or reporting period
Notes
Lists of entrust/contractee：
In RMB
Name of the Name of the Charge
entruster/contract entrustee/contract Type Initial date Due date Pricing basis recognized in the
ee or reporting period
Notes
（3）Information of related lease
The Company was lessor：
In RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of leased assets
this year last year
Benxi Steel (Group) Steel
Warehouse and other 158,500.00 237,750.00
Process and Logistics Co., Ltd.
The company was 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 120,000,000.00 120,000,000.00
Benxi Steel (Group) Co., Ltd. Land using right 28,257,238.10 28,713,000.00
Benxi Beiying Steel & Iron
1780 hot-rolling line 65,950,200.00 65,949,367.29
(Group) Co., Ltd.
Notes:
(1) The Company leases 2300 hot rolling product line from the Group. 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.
(2) The Company leases land use right from the Group. Lease period lasts from 15 April 2009. The leasing fee is
determined by the area of the land which is 7,669,068.17 square meters. Average price is RMB 0.624 per Square
meter per month; In May 1, 2016 after the business tax reform VAT, the annual rent from 57.426 million yuan to
55.63 million yuan change.
(3) The Company leases 1780 hot rolling product line from Benxi Beiying Steel & Iron (Group) Co., Ltd. The
lease term lasts from1 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
155
Bengang Steel Plates Co., Ltd. Interim Report 2016
conditions of production and equipment performance. The annual rent shall not exceed RMB 150,000,000.00.
(4) Related guarantees
（4）Related-party guarantee
The Company was Guarantor
In RMB
Execution accomplished
Secured party Guarantee amount Start date End date
or not
The company was secured party
In RMB
Execution accomplished
Guarantor Guarantee amount Start date End date
or not
Bengang Group Co., Ltd. 45,000,000.00 July 30,2015 July 1, 2016 No
Bengang Group Co., Ltd. 300,000,000.00 July 17,2015 July 17,2016 No
Bengang Group Co., Ltd. 250,000,000.00 October 30,2015 October 30,2016 No
Bengang Group Co., Ltd. 250,000,000.00 October 30,2015 October 30,2016 No
Bengang Group Co., Ltd. 230,000,000.00 November 20,2015 November 20,2016 No
Bengang Group Co., Ltd. 250,000,000.00 November 20,2015 November 20,2016 No
Bengang Group Co., Ltd. 240,000,000.00 November 20,2015 November 20,2016 No
Bengang Group Co., Ltd. 220,000,000.00 November 20,2015 November 20,2016 No
Bengang Group Co., Ltd. 140,000,000.00 January 8,2016 January 8,2017 No
Bengang Group Co., Ltd. 200,000,000.00 November 20,2015 November 20,2016 No
Bengang Group Co., Ltd. 90,000,000.00 January 26,2016 January 25,2017 No
Bengang Group Co., Ltd. 180,000,000.00 November 20,2015 November 20,2016 No
Bengang Group Co., Ltd. 200,000,000.00 January 26,2016 January 26,2017 No
Bengang Group Co., Ltd. 110,000,000.00 January 22, 2016 January 22, 2017 No
Bengang Group Co., Ltd. 170,000,000.00 November 20,2015 November 20,2016 No
Bengang Group Co., Ltd. 140,000,000.00 May 20,2016 May 20,2017 No
Bengang Group Co., Ltd. 200,000,000.00 May 20,2016 May 20,2017 No
Bengang Group Co., Ltd. 200,000,000.00 May 31, 2016 May 20,2017 No
Bengang Group Co., Ltd. 160,000,000.00 May 31,2016 May 20,2017 No
Bengang Group Co., Ltd. 130,000,000.00 June 30,2016 June 28,2017 No
Bengang Group Co., Ltd. 120,000,000.00 June 30,2016 June 28,2017 No
Bengang Group Co., Ltd. 100,000,000.00 March 31, 2016 March 31,2018 No
156
Bengang Steel Plates Co., Ltd. Interim Report 2016
Bengang Group Co.,
Ltd., Benxi Steel (Group) 100,000,000.00 March 30,2016 March 30,2025 No
Co., Ltd.
Bengang Group Co.,
Ltd., Benxi Steel (Group) 150,000,000.00 November 11, 2015 November 10,2016 No
Co., Ltd.
Bengang Group Co.,
Ltd., Benxi Steel (Group) 200,000,000.00 February 5, 2016 January 11,2017 No
Co., Ltd.
Bengang Group Co.,
Ltd., Benxi Steel (Group) 100,000,000.00 February 5, 2016 January 10,2017 No
Co., Ltd.
Bengang Group Co.,
Ltd., Benxi Steel (Group) 100,000,000.00 November 11, 2015 November 8,2016 No
Co., Ltd.
Bengang Group Co.,
Ltd., Benxi Steel (Group) 200,000,000.00 November 19,2015 November 16,2016 No
Co., Ltd.
Bengang Group Co.,
Ltd., Benxi Steel (Group) 200,000,000.00 November 19, 2015 November 18,2016 No
Co., Ltd.
Bengang Group Co.,
Ltd., Benxi Steel (Group) 80,000,000.00 December 8, 2015 December 6,2016 No
Co., Ltd.
Bengang Group Co.,
Ltd., Benxi Steel (Group) 200,000,000.00 December 8, 2015 December 7,2016 No
Co., Ltd.
Bengang Group Co.,
Ltd., Benxi Steel (Group) 200,000,000.00 December 31, 2015 December 8,2016 No
Co., Ltd.
Bengang Group Co., Ltd. 663,120,000.00 August 21, 2015 August 15,2016 No
Bengang Group Co., Ltd. 331,560,000.00 July 28,2015 July 15,2016 No
Bengang Group Co., Ltd. 663,120,000.00 November 30,2015 November 29,2016 No
Benxi Steel (Group) Co.,
994,680,000.00 December 8, 2015 December 7,2016 No
Ltd.
Benxi Steel (Group) Co.,
596,808,000.00 May 19,2016 May 18,2017 No
Ltd.
Benxi Steel (Group) Co.,
656,488,800.00 December 8, 2015 December 7,2016 No
Ltd.
157
Bengang Steel Plates Co., Ltd. Interim Report 2016
Benxi Steel (Group) Co.,
83,000,000.00 July 30,2015 July 2,2016 No
Ltd.
Bengang Group Co.,
Ltd., Benxi Steel (Group) 100,000,000.00 October 21, 2015 October 20,2016 No
Co., Ltd.
Bengang Group Co., Ltd. 220,000,000.00 October 30,2015 October 30,2016 No
Bengang Group Co., Ltd. 180,000,000.00 November 11, 2015 November 11,2016 No
Bengang Group Co., Ltd. 160,000,000.00 December 28,2015 December 28,2016 No
Benxi Steel (Group) Co.,
17,938,224.00 September 10,1997 September 10,2027 No
Ltd.
Bengang Group Co., Ltd. 15,000,000.00 December 29,2014 March 21,2017 No
Bengang Group Co., Ltd. 87,000,000.00 March 26,2015 March 21,2019 No
Bengang Group Co., Ltd. 100,000,000.00 June 25,2015 September 21,2021 No
Bengang Group Co., Ltd. 24,000,000.00 December 9, 2015 March 22, 2022 No
Bengang Group Co., Ltd. 2,457,052.57 June 25,2015 September 30,2025 No
Bengang Group Co., Ltd. 83,944,683.75 August 20,2015 September 30,2025 No
Bengang Group Co., Ltd. 17,617,031.25 August 20,2015 September ,30, 2019 No
Bengang Group Co., Ltd. 45,448.29 June 25,2015 April 30,2026 No
Bengang Group Co., Ltd. 5,496,846.81 June 25,2015 April 30,2026 No
Bengang Group Co., Ltd. 30,009.69 December 28,2015 April 30,2026 No
Bengang Group Co., Ltd. 66,865,541.34 December 28,2015 April 30,2026 No
Bengang Group Co., Ltd. 38,311,727.44 June 25,2015 April 30,2020 No
Bengang Group Co., Ltd. 13,701,304.50 December 28,2015 April 30,2020 No
Bengang Group Co., Ltd. 5,214,848.56 June 25,2015 June 30,2025 No
Bengang Group Co., Ltd. 149,119,904.07 June 25,2015 June 30,2025 No
Bengang Group Co., Ltd. 4,818,557.14 December 28,2015 June 30,2025 No
Bengang Group Co., Ltd. 49,592,579.06 June 25, 2015 June 30,2019 No
Bengang Group Co., Ltd. 40,564,517.87 December 28,2015 June 30,2019 No
Bengang Group Co., Ltd. 5,303,183.14 June 25,2015 October 31,2025 No
Bengang Group Co., Ltd. 106,589,466.01 June 25,2015 October 31,2025 No
Bengang Group Co., Ltd. 48,251,958.20 December 28,2015 October 31,2025 No
Bengang Group Co., Ltd. 68,192,603.04 June 25, 2015 October 31,2019 No
Bengang Group Co., Ltd. 1,308,509.38 December 28,2015 October 31,2019 No
Bengang Group Co., Ltd. 4,493,561.02 June 25,2015 August 31,2025 No
Bengang Group Co., Ltd. 128,255,197.03 June 25,2015 August 31,2025 No
158
Bengang Steel Plates Co., Ltd. Interim Report 2016
Bengang Group Co., Ltd. 2,666,800.00 December 28,2015 August 31,2025 No
Bengang Group Co., Ltd. 53,484,963.20 June 25, 2015 August 31,2019 No
Bengang Group Co., Ltd. 7,055,621.94 December 28,2015 August 31,2019 No
Bengang Group Co., Ltd. 18,941,433.75 December 28,2015 July 30,2019 No
Notes
(5) Inter-bank lending of capital of related parties
In RMB
Amount borrowed and
Related party Initial date Due date Notes
loaned
Borrowed
Loaned
(6) Related party asset transfer and debt restructuring
In RMB
Related party Content Amount of current period Amount of previous period
(7) Rewards for the key management personnel
In RMB
Items
Amount of current period Amount of previous period
(8) Other related-party transactions
(1)Our situation of loan from, interest payment and deposit in Finance Co., Ltd. of Bengang Group Finance Co., Ltd..
In RMB0000
Items Beginning balance Increase Decrease End balance Notes
Deposit 42,342.14 (1)
Loan 1,422.00 (2)
① In January-June 2016, The interest income of our deposit in the Finance Co., Ltd. of Bengang Group(hereinafter
referred to as the Finance Co., Ltd.) was 1.4683 million.
② Our subsidiary corporation, the Dalian Benruitong Automotive Materials Co., Ltd. (hereinafter referred to as the
Dalian Benruitong) got 100 million yuan as credit granting from Finance Co., Ltd. by pledging its machines
worthy 110 million yuan which was also the value of highest principle balance of guaranteed creditors right. The
Dalian Benruitong borrowed 14.22 million yuan from the Finance Co., Ltd. within the credit. In January-June
159
Bengang Steel Plates Co., Ltd. Interim Report 2016
2016, the loan interest paid was 320,000 yuan.
（2）Our situation of interest payment to and loan from Benxi Iron and Steel (Group) Co., Ltd.
（In RMB0000）
Items Beginning balance Increase Decrease End balance
Loan 8,445.20 3,068.97 2,963.24 8,550.93
The details of borrowing balance as of June 30, 2016 are as follows:
In RMB
Related-party Borrowing Loan amount Starting date Due date
Benxi Steel (Group) Entrust loans through Bengang 19,320,300.00 2016-5-20 2017-5-19
Co.,Ltd. Group Finance Co., Ltd.
Benxi Steel (Group) Entrust loans through Bengang 11,369,400.00 2016-6-23 2017-6-22
Co.,Ltd. Group Finance Co., Ltd.
Benxi Steel (Group) Entrust loans through Bengang 32,699,579.48 2015-10-12 2016-10-11
Co.,Ltd. Group Finance Co., Ltd.
Benxi Steel (Group) Entrust loans through Bengang 22,120,000.00 2015-11-13 2016-11-12
Co.,Ltd. Group Finance Co., Ltd.
Total 85,509,279.48
In January-June 2016, the loan interest paid is 2.505 million. As of June 30,2016, there was still 173,200 yuan as
interest needed to be paid to Benxi Steel (Group) Co., Ltd.
6. Receivables and payables of the related parties
（1）Receivables of the Company
In RMB
Ending balance Beginning balance
Name Related parties
Book balance Bad debts provision Book balance Bad debts provision
Account recievable
Benxi Beiying Steel
& Iron (Group) Co., 7,574,850.82 10,713.37
Ltd
Bengang Electronics
2,370,829.72 191,538.38 258.50 191,538.38
Co., Ltd.
Benxi Steel (Group)
41,541,034.19 1,553,819.73 5,469.82 1,553,819.73
Machinery Co., Ltd.
Benxi Steel (Group)
Construction Co., 10,730,869.40 4,620,926.30 1,426.24 5,167,326.30
Ltd.
Benxi Steel (Group)
Industrial 40,175,314.38 493,841.63 4,622.18 493,841.63
Development Co.,
160
Bengang Steel Plates Co., Ltd. Interim Report 2016
Ltd.
Benxi Steel New
Business
3,954,476.39 2,782,180.91 567.77 3,879,011.35
Development Co.,
Ltd.
Benxi Steel (Group)
Thermal Power
6,299,494.01 786.12
Development Co.,
Ltd.
Benxi Steel (Group)
Steel Process and 1,109,500.00 50.00
Logistics Co., Ltd.
Bengang Stainless
Cool-rolling 205,478.22 20.55
(Dandong) Co., Ltd.
Liaoning Hengtong
Metallurgy 12,216,973.44 775.69
Equipment Co., Ltd.
Subtotal 126,178,820.57 9,642,306.96 24,690.24 11,285,537.40
Prepayments
Benxi Beiying Steel
& Iron (Group) Co., 257,036,132.56 18,333.76
Ltd.
Liaoning Hengtai
Heavy Machine Co., 10,868,389.51
Ltd.
Benxi Steel (Group)
16,989,164.37 886.57
Machinery Co., Ltd.
Bengang Group
International
Economic and Trading
Co., Ltd.
Bengang Cold-rolled
Stainless Steel
Dandong Co., Ltd.
Subtotal 284,893,686.44 19,220.33
Other receivables
Benxi Steel (Group)
Real-estate
1,721,862.06 24,708.37 210.30 24,708.37
Development Co.,
Ltd.
Liaoning
118,176.50 72,847.64 15.63 72,847.64
metallurgical
161
Bengang Steel Plates Co., Ltd. Interim Report 2016
Technician College
Benxi Steel (Group)
119,702.68 14.81
Machinery Co., Ltd.
Benxi Steel (Group)
Construction Co., 861,631.21 625,712.73 108.94 863,481.15
Ltd.
Bengang Group
International Trading 12,052,433.54 1,400.70
Ltd.
Benxi Steel (Group)
Industrial
667,452.91 286,932.09 128.52 286,932.09
Development Co.,
Ltd.
Benxi Steel & Iron
(Group) Zhengtai
138,825.16 29,239.19 19.98 29,239.19
Construction
Materials Co., Ltd.
Benxi Steel (Group)
889,535.43 464,382.35 91.99 464,382.35
Medical Co. Ltd.
Subtotal 16,569,619.50 1,503,822.37 1,990.87 1,741,590.79
(2) Payable accounts
In RMB
Projects Related parties Closing balance of book value Opening balance of book value
Notes payable
Benxi Steel (Group) Industrial
35,662,090.99 20,058,008.27
Development Co., Ltd
Benxi Steel (Group) Machinery
40,654,126.25 4,743,944.99
Co., Ltd.
Bengang Electronics Co., Ltd. 740,379.98
Benxi Steel (Group)
Construction & Repairing Co., 3,090,378.56 1,381,574.71
Ltd
Liaoning metallurgical
498,836.64 1,517,733.78
Technician College
Benxi Steel (Group) Mining
350,422,395.51 186,844,809.83
Co., Ltd.
Benxi Steel (Group)
2,353,130.62 152,482.03
Construction Co., Ltd.
Benxi Steel (Group)
Information & Automatic Tech. 412,772.02 323,783.90
Co., Ltd.
162
Bengang Steel Plates Co., Ltd. Interim Report 2016
Benxi Beiying Steel & Iron
167,288,198.59
(Group) Co., Ltd
Liaoning Hengtong
Metallurgical Equipment 14,028,718.13 777,369.98
Manufacturing Co., Ltd.
Liaoning metallurgical
221,269.29
Technician College
Liaoning Hengtai Heavy
365,849.75
Machinery Co. Ltd
Subtotal 447,862,828.70 383,675,025.12
Account payable
Benxi Beiying Steel & Iron
1,967,067,450.64
(Group) Co., Ltd
Bengang Electronics Co., Ltd. 4,721,770.49 8,233,491.05
Benxi Steel (Group) Real-estate
1,358,504.41 1,464,449.10
Development Co., Ltd.
Bengang Group International
906,960,503.69 719,162,306.66
Trading Ltd.
Benxi Steel (Group) Machinery
71,587,624.29 90,101,633.02
Co., Ltd.
Benxi Steel (Group)
62,112,377.16 155,223,262.33
Construction Co., Ltd.
Benxi Steel (Group) Mining
1,309,048,631.30 675,232,923.26
Co., Ltd.
Benxi Steel (Group) Industrial
95,060,209.14 96,527,699.13
Development Co., Ltd.
Benxi Steel New Business
8,888,711.20 12,543,185.57
Development Co., Ltd.
Benxi Steel (Group)
Construction & Repairing Co., 90,313,900.23 103,863,602.27
Ltd
Benxi Steel(Group)Design
7,702,515.68 14,484,121.51
Institute
Benxi Steel (Group) Metallurgy
190,568,345.25 28,716,474.82
Residues Co., Ltd.
Benxi Steel (Group) Medical
20,440.35 20,440.35
Co. Ltd.
Benxi Steel (Group)
Information & Automatic Tech. 45,504,766.48 60,551,446.09
Co., Ltd.
163
Bengang Steel Plates Co., Ltd. Interim Report 2016
Benxi high and new drilling tool
224,704.17 954,411.03
manufacturing Co., Ltd
Liaoning Metallurgy Technician
5,811,583.54 12,864,720.30
College
Liaoning Bengang TradeCo.,
53,000,000.00
Ltd
Benxi Steel (Group) Thermal
247,698.36 274,295.62
Power Development Co., Ltd.
Benxi Steel & Iron (Group)
Zhengtai Construction 339,031.44 396,000.00
Materials Co., Ltd.
Liaoning Hengtong Metallurgy
11,215,187.83 1,122,557.73
Equipment Co., Ltd.
Liaoning metallurgy Career
2,460,555.57 3,948,513.34
Technical College
Bengang Stainless Cool-rolling
482,798.34 197,900.00
(Dandong) Co., Ltd.
Liaoning Hengtai Heavy
10,990,714.45 28,380,631.99
Machine Co., Ltd.
Subtotal 4,792,688,024.01 2,067,264,065.17
Advance from customers
Benxi Steel & Iron (Group)
2,033,557.05 268,726.35
Machinery Manufacture Co., Ltd.
Benxi Steel & Iron (Group)
1,229,489.61 1,534,119.77
Industrial Development Co., Ltd.
Benxi Steel & Iron (Group)
1,669.48 1,669.48
Metallurgy Residues Co., Ltd.
Benxi Steel & Iron (Group) Steel
& Iron Process and Logistics Co., 5,641,750.55 62,631,155.58
Ltd.
Dalian Boluole Steel Tube Co.,
1,235,819.86
Ltd.
Liaoning Bengang Steel & Iron
35,141,247.75 31,798,368.79
Trading Co., Ltd.
Liaoning Hengtong Metallurgical
66,427.36 94,299.22
Equipment Manufacture Co., Ltd.
Liaoning Hengtai Heavy
184,695.93 184,695.93
Machinery Co., Ltd.
Benxi Steel & Iron (Group)
Thermal Power Development Co.,
Ltd.
Bengang Group International
15,806,809.41 17,824,227.63
Economic and Trading Co., Ltd.
Suzhou Bengang Industrial Co.,
17,580,105.49 10,985,007.76
Ltd.
Subtotal 78,921,572.49 125,322,270.51
Other payables
164
Bengang Steel Plates Co., Ltd. Interim Report 2016
Benxi Steel & Iron (Group)
2,962,330.76 2,311,747.28
Real-estate Development Co., Ltd.
Bengang Group International
9,407,664.17 10,165,172.85
Economic and Trading Co., Ltd.
Benxi Steel & Iron (Group)
61,991.09 70,796.80
Machinery Manufacture Co., Ltd.
Benxi Steel & Iron (Group)
6,028,122.04 4,824,388.79
Construction Co., Ltd.
Benxi Steel & Iron (Group)
2,391,725.26 1,419,241.27
Industrial Development Co., Ltd.
Benxi New Career Development
791,231.24 816,990.96
Co., Ltd.
Benxi Steel & Iron (Group)
1,000,000.00
Metallurgy Residues Co., Ltd.
Benxi Steel & Iron (Group)
12,056.00 12,056.00
Medical Co., Ltd.
Benxi Steel & Iron (Group)
Information and Automatic Tech 103,400.02 105,000.00
Co., Ltd.
Benxi Steel & Iron (Group) Steel
& Iron Process and Logistics Co., 7,253,461.55 5,972,325.96
Ltd.
Benxi Steel & Iron (Group) Co.,
100,084,920.41 179,539,999.52
Ltd
Benxi Steel & Iron (Group) Co.,
Ltd News Center
Benxi Steel & Iron (Group)
Thermal Power Development Co., 2,257,775.07 2,373,050.76
Ltd.
Guangzhou Free Trade Zone
2,674,436.85 2,674,436.85
Bengang Sales Co., Ltd.
Shanghai Bengang Steel & Iron
Sales Co., Ltd.
Bengang Cold-rolled Stainless
Steel Dandong Co., Ltd.
Subtotal 134,029,114.45 211,285,207.04
7. Related party commitment
None
8.Other
None
165
Bengang Steel Plates Co., Ltd. Interim Report 2016
XIII. Share-base payment
1. Overall performance of share-base payment
□ Applicable√ Not applicable
2. Share-base payment settled by equity
□ Applicable√ Not applicable
3. Share-base payment settled by cost
□ Applicable√ Not applicable
4. Modification and termination of share-base payment
5.Other
XIV. Commitments and Contingencies
(1) Significant commitments
Significant commitments at balance sheet date
Investment contracts not yet performed or in progress and their relevant financial expenditures
(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 2015. 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.
(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. Details of the above lease are shown in Note IX, (IV) 2
(1) Commitments
1. 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; In May 1, 2016 after the business tax reform VAT, the
annual rent of 57.426 million yuan from 55.603 million yuan for the change.
(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.
(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
166
Bengang Steel Plates Co., Ltd. Interim Report 2016
exceed RMB 150,000,000.00.
(2)Contingencies
(1) Major contingencies on balance sheet date
At the balance sheet date, no significant contingencies need to be dischosed.
(2) For no major contingencies disclosed, explain reasons
The Company has no major contingencies should be disclosed
3.Other
XV. Events after balance sheet date
1.Significant events had not adjusted
In RMB
Influence number to the
Reason of unable to estimate
Items Content financial position and operating
influence number
results
2.Profit distribution
3.Sales return
4.Notes of other significant event after balance sheet date
XVI.Other significant events
1.The accounting errors correction in previous period
（1）Retrospective erestatement
In RMB
Name of the influenced report
Content Processing program Cumulative impact
items during comparison period
（2）Prospective application
Content Processing program Reason of adopting prospective application
167
Bengang Steel Plates Co., Ltd. Interim Report 2016
2.Debt restructuring
3.Replacement of assets
（1）Non-monetary assets exchange
（2）Other assets replacement
4.Pension plan
5.Discontinuing operation
In RMB
Termination of
the business
profits
Items Income Expense Total profits Income tax Net profit
attributable to the
parent company
owner
Other Notes :
6.Segment information
(1) Recognition basis and accounting policies of reportable segment
Our major production is steel and other productions play very small role in our sales. The main production base is
in Liaoning province. For this reason, reports of other branches are not
（2）The financial information of reportable segment
In RMB
Items Withstand Total
（3）There was no reportable segment, or the total amount of assets and liabilities of each part of reportable
segment, shall disclose the reason.
（4）Other notes
7.Other important transactions and events have an impact on investors decision-making
In order to optimize the debt structure and broaden the financing channels, our company has signed the
Cooperation Framework Agreement of Finance Lease with the Liaoning Hengyi Lease Finance Co., Ltd.
(hereinafter referred to as Hengyi Lease) on April 20, 2015. The amount of fund should be limited in 5 billion
yuan. We got the fund in the form of financing leaseback. The lease rate shouldnt be more than the coterminous
168
Bengang Steel Plates Co., Ltd. Interim Report 2016
benchmark loan rate released by Peoples Bank of China. The lease rate should be adjusted dynamically in line
with the changeable benchmark interest rate released by Peoples Bank of China in the lease term. The finance
lease term shouldnt be more than 36 months.
Our company signed the Financing Leaseback contract (No. 2015HYZL0006-ZL-04) with the Hengyi Lease
on December 30, 2015. The purchase price of leased assets is 490,000,000.00 yuan. The lease term is from
December 30, 2015 to December 30, 2016. The lease expense rate was 4.35% when the contract was signed.
（3）The 14th session of the 6th board meeting passed the Proposal of Companys Project to Issue A-shares by
Non-public Offering on July 20, 2015. Our company decided to raise 4 billion yuan by issuing shares to specific
people by non-public offering. The raised money is mainly to support the reconstruction project of cold rolling
high-strength steel, to support the production-line project of hot galvanizing in the third cold rolling company and
to repay the bank loan. These projects are till in the process of examination and approval under legal procedures.
XVII. Notes to the financial statements of parent company
(1) Account receivable
1. Accounts receivable disclosed by category
In RMB
Ending balance Beginning balance
Provision for bad
Balance book Book Balance book Provision for bad debts
Categories debts
value Book value
Proportion Proportion Proportio Proportion
Amount Amount Amount Amount
（%） （%） n（%） （%）
Account receivable
withdrawal bad debt
543,774, 149,956, 393,818,3 600,793 151,599,8 449,193,42
provision by group of 100.00% 27.58% 100.00% 25.23%
994.00 658.57 35.43 ,311.03 89.01 2.02
credit risk
characterstics
543,774, 149,956, 393,818,3 600,793 151,599,8 449,193,42
Total 100.00% 27.58% 100.00% 25.23%
994.00 658.57 35.43 ,311.03 89.01 2.02
Receivable accounts with large amount individually and bad debt provisions were provided
[] 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
Closing balance
Age
Account receivable Bad debt provision Rate
Segments within 1 year
321,696,510.00
within 1 year 321,696,510.00
Subtotal of within 1 year 30,317,846.60 1,515,892.33 5.00%
169
Bengang Steel Plates Co., Ltd. Interim Report 2016
1-2 years 54,149,838.95 10,829,967.79 20.00%
2-3 years 137,610,798.45 137,610,798.45 100.00%
Over 3 yrs 543,774,994.00 149,956,658.57 27.58%
Total
Notes
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) 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 RMB1,643,230.44 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.
(4) Top 5 debtors in the receivable accounts
Ending balance
Name Percentage of total Provision for
Amount
accounts receivable (%) bad debts
Benxi Nanfen Xinhe Metallurgical Co., 82,035,076.96 15.09
Ltd.
Benxi Steel （Group）Manufacturing Co., Ltd. 41,541,034.19 7.64 1,553,819.73
Benxi Steel（Group）Industrial Development 40,175,314.38 7.39 493,841.63
Co., Ltd.
Liaoyang Petroleum Steel Pipe 35,652,692.38 6.56 3,341,228.18
170
Bengang Steel Plates Co., Ltd. Interim Report 2016
Manufacture Co., Ltd.
North China Petroleum Steel Pipe Co., Ltd. 32,873,213.55 6.05 5,891,750.53
Total 232,277,331.46 42.72 11,280,640.07
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
Other notes：
2.Other account receivable
(1) Other accounts receivable disclosed by category
In RMB
Balance in year-end Balance in year-begin
Bad debt Amount Proportion(%)
Book Balance
Category provision Book
Book value
Amount Proportio Amount Proportio value Amount Proportio Amount Proportion(
n(%) n(%) n(%) %)
Other account
receivable
withdrawal bad debt 251,447, 61,866,7 189,580,5 289,792 62,104,55 227,688,15
99.31% 24.60% 99.40% 21.43%
provision by group of 377.97 81.94 96.03 ,710.30 0.36 9.94
credit risk
characterstics
Other account
receivable with
1,740,00 1,740,000 1,740,0 1,740,000.0
single minor amount 0.69% 0.60%
0.00 .00 00.00 0
but withdrawal bad
debt provisionsingly
253,187, 61,866,7 191,320,5 291,532 62,104,55 229,428,15
Total 100.00% 24.44% 100.00% 21.30%
377.97 81.94 96.03 ,710.30 0.36 9.94
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
□ Applicable √Not applicable
Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis：
√Applicable □Not applicable
171
Bengang Steel Plates Co., Ltd. Interim Report 2016
In RMB
Amount in year-end
Age
Other receivable Bad debt provision Withdrawal proportion
Segments within 1 year 179,599,913.08
Subtotal of within 1 year 179,599,913.08
1-2 years 9,927,193.00 496,359.65 5.00%
2-3 years 2,862,312.00 572,462.40 20.00%
Over 3 yrs 60,797,959.89 60,797,959.89 100.00%
Total 253,187,377.97 61,866,781.94 24.44%
Remarks on categories of receivable account
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
□ Applicable √ 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 RMB237,768 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.
(4) Other receivables disclosed by nature
In RMB
Account property Closing balance of book value Opening balance of book value
172
Bengang Steel Plates Co., Ltd. Interim Report 2016
Trade 249,072,729.81 255,674,062.26
Export tax refund 30,841,071.89
Others 4,114,648.16 5,017,576.15
Total 253,187,377.97 291,532,710.30
(5) Top five debtors at the year-end
In RMB
Portion in total other
Name Nature Year-end balance Age Bad debt provision
receivables(%)
Bengang Group
International Trade Account 12,052,433.54 Within 1 year 4.76%
Co.,Ltd.
Huozhou Coal Group
Account 4,341,257.18 Over 3 years 1.71% 4,341,257.18
Co., Ltd.
SUNON Furniture
Account 2,385,401.00 1-2 years 0.94% 139,270.05
Manufacture Co., Ltd.
Liaoning Huaweixuan
Account 2,261,360.00 Over 3 years 0.89% 2,261,360.00
Coal Co., Ltd.
Benxi Steel
(Group)Real Estate
Account 1,721,862.06 1-2 years 0.68% 24,708.37
Development Co.,
Ltd.
Total -- 22,762,313.78 -- 8.99% 6,766,595.60
(6) Accounts receivable involved with government subsidies
In RMB
Project of government Estimated received time
Name Closing balance Closing age
subsidies amount and basis
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
Other notes：
173
Bengang Steel Plates Co., Ltd. Interim Report 2016
3. Long-term equity investment
In RMB
Year-end balance Year-beginning balance
Items Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Investment to the
1,700,981,902.16 1,700,981,902.16 1,700,981,902.16 1,700,981,902.16
subsidiary
Total 1,700,981,902.16 1,700,981,902.16 1,700,981,902.16 1,700,981,902.16
(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
Cool Rolling Steel 1,019,781,571.10 1,019,781,571.10
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 2,081,400.65 2,081,400.65
174
Bengang Steel Plates Co., Ltd. Interim Report 2016
Steel Material
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.
Benxi Bengang
Steel Sale Co., 5,000,000.00 5,000,000.00
Ltd.
Shenyang
Bengang
metallurgical 5,000,000.00 5,000,000.00
Technology Co.,
ltd.
Total 1,700,981,902.16 1,700,981,902.16
（2）Investment to joint ventures and associated enterprises
In RMB
Increase/decrease
Closing
Gains and Adjustme
Cash Withdraw balance
Decrease losses nt of
Opening Add Chinges bonus or al of Closing of
Investees d recognize other
balance investmen of other profits impairme Other balance impairme
investmen d under comprehe
t eqiuty announce nt nt
t equity nsive
d to issue provision provision
method income
I. Joint venture
2. Affiliated Company
（3）Other notes
4. Business income and Business cost
In RMB
Items Amount of current period Amount of previous period
Revenue Cost Revenue Cost
175
Bengang Steel Plates Co., Ltd. Interim Report 2016
Main business 12,051,859,180.54 10,706,509,048.28 15,855,226,396.28 14,836,218,969.92
Other business 1,133,529,266.65 1,023,377,735.93 1,364,397,276.16 1,239,113,720.27
Total 13,185,388,447.19 11,729,886,784.21 17,219,623,672.44 16,075,332,690.19
Other notes：
5.Investment income
In RMB
Items
Amount of current period Amount of previous period
Long-term equity investment income by cost
13,713,328.45
method
Gains from short-term bank financial
6,584,315.11
instruments
Total 13,713,328.45 6,584,315.11
6..Other
XIV. Supplementary Information
1. Details of non-recurring gain/loss of the term
√ Applicable □Not applicable
In RMB
Items Amount Notes
Profits or losses from disposal of non-current
2,014,983.90
assets
Government grants included in current
profits and losses (except for government
grants closely related to the enterprise 16,622,000.00
business, obtained by quota or quantity at
unified state standards)
Profits or losses from debt restructuring 4,527,416.04
Other non-operating income and expenditure
926,794.62
except for the above items
Less: Influenced amount of income tax 6,022,798.64
Influenced amount of minority
46,426.19
shareholders’ equity
Total 18,021,969.73 --
176
Bengang Steel Plates Co., Ltd. Interim Report 2016
For the Companys non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable √Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
EPS（Yuan/share）
Profit as of reporting period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to common
1.52% 0.06 0.06
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
1.37% 0.05 0.05
deduction of non-recurring profit
and loss
3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
√ Applicable □Not applicable
In RMB
Net profit Net assets
Reporting period Same period of last year Closing balance Opening balance
According to CAS 182,538,176.32 128,007,136.26 12,122,492,113.58 11,934,100,372.02
According to international accounting standards
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□Applicable √ Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting
standards, for audit data adjusting differences had been foreign audited, should indicate the name of the
foreign institutions
4.Other
177
Bengang Steel Plates Co., Ltd. Interim Report 2016
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.
178
