Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Bengang Steel Plates Co., Ltd.
Semi-Annual Report 2018
August, 2018
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
I. Important Notice, Table of Contents, and Definitions
The Board of Directors, the Supervisory Committee and the Directors, members of
the Supervisory Committee and senior management of the Company guarantee that
there are no misrepresentations or misleading statements, or material omission in this
report, and individually and collectively accept full responsibility for the authenticity,
accuracy and integrity of the information contained in this report.
Wang Shu, Chairman of the Company, Gao Lie, the principal in charge of the
accounting, and Zhao Zhonghua, Chief of Accounting Affairs, make the pledge for
the authenticity, accuracy and integrity of the attached financial statements.
Except the following member of the Board of Directors, all the members of the Board
of Directors attended the board meeting on which this report was examined.
Name of director absent Title of director absent Reasons for absence Attorney
Wang Shu Chairman Travel on business Huang Xinghua
Cao Aimin Director Travel on business Huang Xinghua
The prospective statements contained in this semi-annual report do not constitute any
substantial commitment to the investors. Investors should pay attention to the risks
attached to investment decisions. This report is prepared in both of Chinese and
English. The Chinese version shall prevail when there are any controversial
statements in the two versions.
The Company planned not to distribute cash dividend or bonus shares, and not to
convert capital reserve into share capital.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Table of Contents
I. Important Notice, Table of Contents, and Definitions .............................................. 2
I. Important Notice, Table of Contents, and Definitions ........................................ 2
II. Company Profile and Main Financial Index ....................................................... 5
III. Summary of Company Business ......................................................................... 8
IV. Management Discussion and Analysis .............................................................. 10
V. Important Events ............................................................................................... 17
VI. Status of Share Capital Changes and Shareholders .......................................... 45
VII. Status of Preferred Shares ................................................................................. 51
VIII. Status of Directors, Supervisors, Senior Executives ......................................... 52
IX. Relevant Information about Corporate Bonds .................................................. 54
X. Financial Report ................................................................................................ 55
XI. Documents available for inspection ................................................................ 198
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Definition
Terms to be defined Refers to Content of Definition
Bengang Bancai, Bengang Steel, the Company,
Refers to Bengang Steel Plates Co., Ltd.
the Listed Company
Bengang Group Refers to Bengang Group Co., Ltd.
Bengang Co. Refers to Benxi Steel & Iron (Group) Co., Ltd.
Liaoning Provincial State-asset Administration Refers to Liaoning State-owned Asset Supervisory and Management Committee
SSE Refers to Shenzhen Stock Exchange
Bengang Puxiang Refers to Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
II. Company Profile and Main Financial Index
I. Company Information
Stock abbreviation Bengang Bancai, Bengangban B Stock Code 000761, 200761
Stock exchange for listing Shenzhen Stock Exchange
Company name in Chinese 本钢板材股份有限公司
Abbreviation of Company
本钢板材
name in Chinese
Company name in English (If
BENGANG STEEL PLATES CO.,LTD.
any)
Abbreviation of Company
BSP
name in English (If any)
Legal representative Wang Shu
II. Contact Information
Secretary of the Board Representative of Stock Affairs
Name Zhao Zhonghua
No.16, Renmin Road, Pingshan District,
Address
Benxi City, Liaoning Province
Tel 024-47823862
Fax 024-47827004
Email BGBC2018@163.com
III. Other Information
1. Contact Information of the Company
Whether the information disclosure and place for consulting have changed
□ Applicable √ Not applicable
Name of newspaper selected by the Company for information release, website appointed by CSRC for publishing semi-annual report
and lodging address of semi-annual report of the Company have not changed during the reporting period. Please refer to Annual
Report 2017 for details.
2. Place for information disclosure
Whether the information disclosure and place for consulting have changed
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
□ Applicable √ Not applicable
Name of newspaper selected by the Company for information release, website appointed by CSRC for publishing semi-annual report
and lodging address of semi-annual report of the Company have not changed during the reporting period. Please refer to Annual
Report 2017 for details.
IV. Summary of Accounting data and Financial index
Whether the Company makes retroactive adjustment or restatement of the accounting data of the previous year
□ Yes √ No
Increase or decrease in this
Same period in previous
This reporting period reporting period over the
year
previous year (%)
Operating income 23,441,247,377.14 20,736,486,903.74 13.04%
Net profit attributable to the shareholders
756,951,987.59 523,635,653.57 44.56%
of the listed company
Net profit attributable to the shareholders
of listed company after deducting 724,922,955.98 508,873,423.83 42.46%
non-recurring gain/loss
Net cash flows generated by operating
730,519,741.47 -4,047,305,684.72 118.05%
activities
Basic earnings per share 0.195 0.167 16.77%
Diluted earnings per share 0.195 0.167 16.77%
ROE 4.56% 4.04% 0.52%
Increase or decrease at the
At the end of this reporting At the end of previous
end of this reporting period
period reporting period
over the previous year (%)
Total assets 64,033,117,289.87 62,998,143,513.02 1.64%
Net assets attributable to shareholders of
18,861,998,055.40 14,315,588,729.00 31.76%
the listed company
V. Differences between Domestic and Foreign Accounting Standards
1. Differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese
accounting standards.
√ Applicable □ Not applicable
Unit：Yuan
Net profit attributable to the shareholders of the Net assets attributable to the shareholders of the
listed company listed company
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
This reporting period Previous reporting period Ending balance Beginning balance
According to Chinese
756,951,987.59 523,635,653.57 18,861,998,055.40 14,315,588,729.00
accounting standards
Items and amounts adjusted according to IFRS
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report,under either foreign accounting rules or
Chinese GAAP(Generally Accepted Accounting Principles) in the period.
3. Accounting data differences between domestic and foreign accounting standards
□ Applicable √ Not applicable
VI. Items and Amount of Non-recurring Gains and Losses
√ Applicable □ Not applicable
Unit：RMB
Items Amount Notes
Profit or loss from disposal of non-current assets (including the
-556,821.63
write-off part for which assets impairment provision is made)
Details of government subsidies recorded into current profits and
loss(except such government subsidy closely related to the
company’s normal business operation,，meeting the regulation of 41,274,238.70
national policy and enjoyed constantly in certain quota or quantity
according to a certain standard)
Profit or loss from debt restructuring 945,892.23
Other non-operating revenue and expenditure other than above
1,192,505.57
items
Less: Impact of income tax 10,713,953.72
Impact of non-controlling interests (after tax) 112,829.54
Total 32,029,031.61 --
Explanation for defining non-recurring gains and losses items according to the "Public Offering of Securities Information Disclosure
Explanatory Notice No. 1 – Non-Recurring Gains and Losses", and reasons for defining non-recurring gains and losses items listed in
the document as recurring items.
□ Applicable√ Not applicable
There exists no situation of defining non-recurring gains and losses items listed in the document as recurring items.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
III. Summary of Company Business
1. the Company's main business during the reporting period
Whether the Company needs to comply with the disclosure requirement for special industry
No
During the reporting period, the main businesses of the company involves iron and steel smelting, rolling processing, electricity
generation, coal chemical industry, special steel profile, railway, import and export trade, research and development, product sales,
etc. By introducing the world-advanced equipment technology, the company upgrades the equipment for main steel business and has
basically built up a high-quality steel product base of more than 60 varies and more than 7,500 specifications. Ratio of
high-value-added and hi-tech content products is over 80%. Its leading products, such as automobile surface plate, household
appliance, petroleum pipe line, container plate and boat deck, are widely applied in many fields, including automobile, household
appliances, petrochemical engineering, machine manufacturing, energy transportation, architectural decoration, metal parts, etc., and
they are exported to more than 60 countries and regions.
In the first half of 2018, steel prices continued to operate at a high level since last year. Bengang seized the market opportunities,
carried out in-depth implementation of digging potential, reducing costs, improving efficiency, promoted the supply side of the
structural reform, strengthened enterprise management, solidly improved quality and efficiency, continuously enhanced the economic
performance and efficiency, and achieved remarkable results. At the same time, the overaged No. 5 Blast Furnace and the new No. 1
Blast Furnace which did not meet the new environmental protection requirement were massively reformed. Although some pig iron
production capacity was sacrificed during the period, but after reform, the Company's blast furnace could produce in line with the
new environmental requirements, which fulfilled the Company's social responsibility, and at the same time laid a solid foundation for
high production for the Company's next cycle.
During the reporting period, the contents above had no major changes.
2. Major Changes in Main Assets
1、Major Changes in Main Assets
Main assets Major changes
As at 30 June 2018, balance of Other current assets was RMB 217,616.4 thousand,
Other current assets decreased by 73.11% compared with beginning balance, mainly due to a decrease in
purchase of financial products.
As at 30 June 2018, balance of Construction materials was RMB2,925.6 thousand,
Construction materials decreased by 35.83% compared with beginning balance, mainly due to an increase in the
use of Construction materials.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
2. Main Information of Overseas Assets
□ Applicable √ Not applicable
3. Analysis on Core Competitiveness
Whether the Company needs to comply with the disclosure requirement for special industry
No
In response to the national industry revitalization and development policy, focusing on supply side structural reform, the Company
carefully planned a new round of technical transformation, implemented technical renovation items in the varieties structure
adjustment, new materials research and development, green and intelligent manufacturing, capacity replacement and other aspects,
promoted the Company to achieve high-quality, green, intelligent development. Focusing on national science and technology
innovation policy and industry guide and direction, the Company actively applied to join the Chinese Automotive Engineering
Society and Corrosion-resistant Steel Industrial Technology Innovation Strategic Alliance, and strived to build a high-level research
and development platform, strengthened foreign technical exchanges and cooperation, applied to national, provincial major science
and technology projects in multi channels, obtained policy support in 6 projects.
In order to upgrade the level of technological innovation and increase efficiency and benefit ability comprehensively, strengthen the
variety adjustment and market development, improve product quality stability and ensure production ability, promote low-cost and
green manufacturing technology, the Company carried out 58 key technology projects around the variety, quality, cost these three
key elements. Some projects have achieved phased results.
The Company completed new product development of 24 brands in the first half year, including automotive interior plate QP980,
galvanized duplex steel dp780+z, X80 low-temperature high toughness hot-rolled pipeline steel. Performance testing of all qualified
to meet user requirements; some varieties have realized batch supply. Besides, a total of 15 brands of products have been certificated.
The Company completed certification for automotive users such as Dongfeng Nissan, Shenlong Automobile and so on. At present,
certification work of more than 70 products for General Motors, SAIC passenger car, Dongfeng passenger car, BYD Automobile,
Geely Automobile and other automotive plants is underway. The Company organized declaration of 80 patents, among which 5
patents have been authorized by the State Intellectual Property Office, including 3 invention patents and 2 utility model patents. The
Company also claimed for China Patent award for 2 patents.
Based on the principle of "resource sharing, mutual benefit and mutual win development", the Company and Northeast University
further strengthened the breadth and depth of cooperation, focused on the development direction of industry, established the
cooperative mechanism of "research and production", and carried out all-round cooperation and exchanges. Academician expert team
of Northeast University has played an important intellectual support and leading role in the Company's scientific and technological
innovation, which will continue to enhance the university, enterprise and regional development of competitive advantage, promote
the common development of both sides.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
IV. Management Discussion and Analysis
I. General
In the first half of 2018, the Company's overall production was organized steadily and smoothly. However, steel production was
decreased compared with the same period last year affected by the reform of two blast furnaces. Production of pig iron and crude
steels reduced by 930,000 and 770,000 tons respectively compared with the same period last year. In order to reduce the impact of
the decreased production of pig iron on the performance, the Company seized the opportunity of high-level operation in the steel
market, comprehensively strengthened enterprise management, and thoroughly implemented potential tapping, costs reduction and
efficiency improvement, continuously improving the quality and efficiency of economic operations, and achieved remarkable results.
Revenue increased 13.04% and profits increased 44.56% compared to same period in previous year.
The main work done in production operation during the first half year is as followings:
First, the market development and variety adjustment to increase the benefits gained fruitful results. Through the expansion of
varieties, optimization of structure, improvement of the proportion of high value-added products, improvement of the efficiency of
steel ton, optimization of the regional market structure and other effective measures, the Company continuously realized the increase
of benefits.
Second, referring to the advanced domestic iron and steel enterprise's control mode, the Company fully implemented the "fixed
position, fixed staffing, fixed responsibility, fixed compensation" work, smoothly implemented the design and reform of
compensation system. At the same time, the Company implemented departmental work-style assessment, enterprise accountability
system, leading group and leading cadre comprehensive assessment methods. Through the four internal reform measures, the
Company improved the level of enterprise management in all aspects.
Third, the Company effectively implemented innovation-driven strategy. In the first half year, the Company developed a total of 24
new products, among which QP980 steel product completed the first industrial test, all its performance indicators met the
requirements of the national standard, filling the gap in the research field of Bengang in quenching and distribution steel. Low-iron-
loss 50BW470 product realized batch supply, its physical quality achieved the domestic advanced level. The first time of
development and production of cars (passenger cars) gears steel 20CrMnTiH2 product realized a new breakthrough in the
development of gear steel for cars (passenger cars). The high-speed tool steel DS120 product broke the foreign steel's monopoly in
saw steel market.
Fourth, the safety production situation was overall stable. The Company carried out key-point special rectification work and
production safety month activities, detailed the implementation of security responsibilities at all levels, increased security education
and training, in-depth implemented various types of special hidden trouble, strengthened the implementation of joint maintenance
construction safety measures. Thus, none responsible production death accidents occurred, and the Company achieved the “three zero
goal”, which means no larger personal accident, no larger equipment accident, no major fire accident.
Five, the green development strategy achieved remarkable results. In strict accordance with national standards and policy
requirements, the Company solidly carried out a second census and inventory of pollution sources and the application for steel
industry pollutant discharge permit. Through strengthening the stable operation of environmental protection facilities, implementing
the pollutant stability standard discharge, perfecting the automatic on-line monitoring facility and so on, the Company realized
controllable discharge in the pollution-producing link, and accountable foundation basis for discharge quantity.
Six, the strategy of strengthening talents was implemented continuously and thoroughly. The Company carried out the open
competition for leading cadres in accordance with the principles of paying attention to personal character, grass-roots units,
achievements and academic qualifications. Based on the MBA training course of Bengang, the Company deepened the training of
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
leading cadres to improve their quality and ability, strived to use 3-5 years to complete the training rotation of all leading cadres, so
as to refine their thinking, sublimate their realm, open up their ideas and strengthen their confidence, and to promote the quality of
leading cadres comprehensively.
Seven, the Company continuously strengthened and improved the Party building, strengthened the Party's leadership, implemented
the "Party Building Leadership and Revitalization Project", incorporated the requirements of Party building into the articles of
association, and clarified the legal status of Party organizations in the corporate governance structure. The Company strengthened the
construction of Party branches at the grass-roots level and implemented the "Solid Foundation Project". The Company strengthened
the building of Party members and implemented the "Pioneer Project of Communist Party members". The Company improved the
Party's organizational living system, organized leading groups of Party committees at all levels to hold special meetings on
democratic life of political warning education, and organized Party members to carry out special discussions on the theme of
"Stressing Practical Work, Strengthening Implementation, Grasping Implementation", so as to carry forward the style of seeking truth
and pragmatism and doing practical work.
II. Main Business Analysis
For relevant information please refer to “Management Discussion and Analysis 1. General”.
Year-on-year changes in major financial data:
Unit: Yuan
Increase or decrease in
Same period in previous
This reporting period this reporting period over Reason for change
year
the previous year
Operating Income 23,441,247,377.14 20,736,486,903.74 13.04%
Operating Cost 20,804,207,420.98 18,690,665,966.11 11.31%
Selling and distribution
514,038,008.95 587,632,707.43 -12.52%
expenses
General and
464,313,066.09 358,951,405.08 29.35%
administrative expenses
Financial expenses 803,038,417.28 381,513,404.80 110.49%
Deferred tax expenses
Income tax expense 11,636,226.04 117,105,061.16 -90.06% decreased over same
period in previous year.
Research &
726,678,668.69 690,127,962.35 5.30%
Development Expenses
Net cash flows generated
Net cash flows generated from operating activities
730,519,741.47 -4,047,305,684.72 118.05%
from operating activities increased over same
period in previous year.
Net cash flow generated
Net cash flow generated
from investment
from investment -176,948,631.71 -454,763,829.82 -61.09%
activities decreased over
activities
same period in previous
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
year.
Net cash flow generated
Net cash flow generated from financing activities
-1,657,793,276.26 3,755,056,060.56 -144.15%
from financing activities decreased over same
period in previous year.
Net increase in cash and
-999,206,556.27 -788,599,857.18 26.71%
cash equivalents
Whether the Company’s profit composition or source of profit during the reporting period changed significantly
□ Applicable √ Not applicable
The Company’s profit composition or source of profit during the reporting period did not change significantly.
The composition of main business:
Unit: Yuan
Operating income Operating cost Gross margin
change over same change over same change over same
Operating Income Operating Cost Gross margin
period in previous period in previous period in previous
year year year
By industries
21,300,237,688.9 19,140,922,165.5
Industry 10.14% 9.37% 8.52% 0.70%
0 3
By products
20,917,518,422.5 18,792,302,020.5
Steel plate 10.16% 8.84% 8.34% 0.41%
5 1
Steel billet
Others 382,719,266.35 348,620,145.02 8.91% 49.00% 55,288,534.29% 23.03%
By regions
Northeast 4,523,215,811.97 4,087,265,052.73 9.64% 1.25% 0.60% 0.58%
North 2,479,322,632.75 2,248,249,959.52 9.32% 2.47% 2.11% 0.32%
East 6,998,910,714.09 6,309,308,041.43 9.85% 20.31% 19.53% 0.58%
Northwest 50,674,161.50 46,187,977.99 8.85% 8.41% 9.31% -0.75%
Mid-south 976,227,056.23 881,015,631.44 9.75% 14.70% 13.83% 0.68%
Export 6,271,887,312.36 5,568,895,502.43 11.21% 6.78% 5.48% 1.09%
III. Analysis of Non-core Business
√ Applicable □ Not applicable
Unit: Yuan
Proportion in total
Amount Explanation of cause Sustainable (yes or no)
profit
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Income of foreign financial
management and investment
Income on
3,493,150.68 0.45% income of Available-for-sale Yes
investment
financial assets during
holding period
Impairment of Impairment of inventories
-20,917,963.64 -2.72% No
assets and loss for bad debts
Non-operating
2,138,397.80 0.28% No
income
Non-operating
1,382,402.26 0.18% No
expenses
IV. Assets and Liabilities
1. Significant Change of Assets Components
Unit: Yuan
At the end of this reporting At the end of the Same period
period in previous year
Proportion
Proportion in Proportion in Notes to significant changes
change
Amount the total Amount the total
assets assets
Cash at bank and 18,570,241,60 12,240,579,151
29.00% 22.41% 6.59%
on hand 7.21 .57
Accounts 707,889,986.3
1.11% 536,054,820.21 0.98% 0.13%
receivable 4
12,893,804,54 9,834,703,845.
Inventories 20.14% 18.00% 2.14%
9.47 66
Long-term equity
2,726,009.03 0.00%
investments
22,739,708,83 19,753,582,768
Fixed assets 35.51% 36.16% -0.65%
9.78 .45
Construction in 2,740,359,727. 7,030,049,975.
4.28% 12.87% -8.59%
progress 63 69
21,784,802,70 22,787,674,400
Short-term loans 34.02% 41.71% -7.69%
0.00 .00
4,406,999,573. 3,161,338,135.
Long-term loans 6.88% 5.79% 1.09%
88 87
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
2. Assets and Liabilities Measured at Fair Value
□ Applicable √ Not applicable
3. Restricted Assets by the End of the Period
Book value at the end of this
Items Reason of restriction
reporting period
Monetary assets 2,531,734,752.99 Deposit for notes and L/C
Pledged for acceptance bill and sho
Notes receivable 1,801,103,300.17
rt-term loans
Total 4,332,838,053.16
V. Investment
1. General
□ Applicable √ Not applicable
2. Acquiring Significant Equity Investment in the Reporting Period
□ Applicable √ Not applicable
3. Undergoing Significant Non-equity Investment in the Reporting Period
□ Applicable √ Not applicable
4. Investment of Financial Assets
(1) Investment in Securities
□ Applicable √ Not applicable
(2) Investment in Derivatives
□ Applicable √ Not applicable
VI. Significant Assets and Equity Sold in Reporting Period
1. Significant Assets Sold
□ Applicable √ Not applicable
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
2. Substantial Equity Sold
□ Applicable √ Not applicable
VII. Analysis on Main Subsidiaries and Share Participating Companies
√ Applicable □ Not applicable
Main subsidiaries and the joint-stock companies influencing over 10% net profit of the Company
Unit: Yuan
Company Sectors Registered Operating
Company type Total assets Net assets Turnover Net Profit
Name engaged in capital profit
Bengang
Puxiang Cool Processing
1,920,000,00 5,130,355,89 1,998,336,18 3,971,529,84 7,348,948.
Rolling Steel Subsidiary and sales of 5,511,711.19
0.00 6.56 1.15 7.27 26
Sheet Co., steel
Ltd.
Acquirement and disposal of subsidiaries during the reporting period
□ Applicable √ Not applicable
VIII. Special purpose vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Forecast of operating performance for during January to September 2018
Warning and reason for that forecast of the cumulative net profit from the beginning of the year to the end of the next reporting
period might be a loss or due to significant change compared to the previous year
□ Applicable √ Not applicable
X. Risks and countermeasures for the Company
1. Risk of overcapacity and industrial restructuring
Risk: Although the external environment for the development of China's steel industry has been improved, the contradiction of excess
capacity in China's steel industry has not been fundamentally solved. China's steel industry is still in the stage of long-term capacity
removal and structural adjustment. The structural contradiction of the industry is prominent, problems such as low concentration of
the industry, unreasonable industrial layout, and unreasonable innovation capability of the industry still exists. Competition among
iron and steel enterprises is still fierce. The iron and steel market will inevitably shake sharply, which will affect the production,
operation and efficiency of enterprises.
Countermeasures: pay close attention to the domestic market demand for iron and steel products, timely grasp the volatility of
domestic fixed assets investment, adjust business strategy in combination with the implementation of shutdown and elimination of
backward steel production capacity as well as the construction and production of new capacity of the state, strengthen the capability
of independent innovation and enhance the core competitiveness of enterprises.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
2. Risk of environmental protection: environmental emission standards are becoming increasingly stringent, and environmental
monitoring is becoming more stringent.
Risk: China's environmental protection policies and standards are becoming increasingly perfect and strict, and the enterprise
environmental protection supervision continues to be tightened, especially the implementation of the State Council's Three-year
Blue-Sky Defense Plan. As an iron and steel enterprise, waste water, waste gas, waste residue, dust, noise and so on generated in the
production process will cause pollution to the surrounding environment, and is also the key point of environmental protection control.
The strictness of environmental standards will lead to the increase of the Company's production cost. In addition, the Company has
invested a lot of manpower, material and financial resources in environmental protection in recent years, and has taken effective
measures to solve the main pollution sources. However, the Company is still facing the compliance risk caused by the further stricter
environmental policies and standards in the future.
Countermeasures: pay attention to the various national environmental protection policies, improve enterprise environmental
protection standards to meet and properly exceed the national standards, strengthen self-supervision and inspection of all kinds of
pollution sources and strengthen the awareness of environmental protection for all staff, speed up the construction progress of the
identified environmental protection projects and ensure that the national environmental protection requirements are met.
3. Risk of raw fuel price fluctuation: especially the risk caused by the supply gap of coking coal.
Risk: Although the Company has certain mining advantages, but the iron ore self-sufficiency rate is not high, the fluctuation of
international iron ore prices will affect the Company's production costs, the Company has no autonomy in pricing most of the raw
materials and fuels. Coking coal producers, which are also affected by environmental protection policies, are expected to have
insufficient supply of coking coal due to the tightening of environmental protection policies. The imbalance between supply and
demand may lead to the rise of raw material prices, thereby affecting the Company's profits.
Countermeasures: conduct market analysis to support procurement decisions to ensure the supply of raw materials and fuels;
according to market price fluctuations, adhere to the economic inventory strategy, optimize the inventory structure, to ensure the
normal production and operation of enterprises.
4. Risk of foreign trade: export tariffs
Risk: In 2018, the United States decided to impose tariffs on steel imports from China, which would easily lead to the re-spread of
"anti-globalization" ideological trend, the rise of international trade protectionism, the increase of anti-dumping cases, the growing
trade frictions, trade barriers, disorderly competition in the export market, and exchange rate instability, and these factors could make
it more difficult to export.
Countermeasures: strengthen international market analysis, track changes in international trade policies, reduce the impact of sudden
changes in trade policies on the Company's foreign trade; do a good job of trade friction response programs, resolve adverse effects
of trade friction, enhance the competitiveness of the company's products in the international market, study the market dynamics and
industrial policies of importing countries and grasp the dynamic changes of import market, find suitable partners, foster superior
products, gradually increase the proportion of high-end products exports, strengthen after-sales service, improve customer
satisfaction.
5. Risk of reduced demand for downstream steel
Risk: the downstream demand of the Company's products is mainly composed of building, household appliances, automobile and
other fields. In recent years, due to the continuous regulation and control of the real estate industry, the real estate market as a whole
is in a downward cycle, the growth rate of real estate investment has further slowed down. At the same time, the state is now
tightening the supervision of PPP projects, and the growth rate of infrastructure in 2018 has also declined. In the medium and long
term, manufacturing will be the main driving force for steel demand. But considering the downward pressure on real estate, the
downstream demand for steel will not change in the short term.
Countermeasures: Maintain existing customers, increase the strength of new product development, continue to promote product
upgrading, actively explore the market for new customer resources.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
V. Important Events
I. Annual General Meeting of Shareholders and Temporary General Meeting of
Shareholders held during the Reporting Period
1. Annual General Meeting of Shareholders
Investor Index of information
Sessions Type Meeting Date Date of disclosure
participation ratio disclosure
Announcement No.:
2018-028
2017 Annual General Annual General
59.50% 24 May, 2018 25 May, 2018 Disclosure address
Meeting Meeting
http://www.cninfo.co
m.cn
2. Temporary general meeting Request by preferred stockholders whose voting rights restored
□ Applicable √ Not applicable
II. Profit Distribution or Capital Reserve Conversion Proposal in the Reporting Period
□ Applicable √ Not applicable
The Company planed not to distribute cash dividend or bonus shares, and not to convert capital reserve into share capital during the
reporting period.
III. The Fulfilled Commitments During the Reporting Period and Under-Fulfillment
Commitments by the End of the Period Made by Actual Controller, Acquirer, Director,
Supervisor, Senior Management Personnel and other Related Parties.
√ Applicable □ Not applicable
Type of Commitment Commitment Degree of
Items Parties Commitments
commitments Time period performance
Share reform commitment
Commitment made in report of
acquisition or report of equity change
Commitment made in asset
reorganization
Company According to
Commitment made in IPO or Other In normal
directors、 relevant 26 Jan, 2016 9 Dec 2019
refinancing commitment performance
senior regulations of
17
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
manager China
securities
regulatory
commission,
the company's
compensation
measures can
be effectively
implemented
by making the
following
commitments:
during tenure,
directors and
senior
manager will
faithfully and
assiduously
perform their
duties and
safeguard the
lawful rights
and interests
of the
company and
all
shareholders,
including but
not limited to:
1.
Commitment
to not transfer
benefits to
other units or
individuals
without
compensation
or unfair
conditions,
and not to
damage the
company's
interests in
other ways ; 2.
18
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Commitment
to constrain
the behavior
of
position-relate
d
consumption ;
3.
Commitment
to not use
company
assets to
engage in
investment
and
consumption
activities
unrelated to
the
performance
of their duties;
4.
Commitment
to link the
compensation
system
established by
the board of
directors or
the
Remuneration
and Appraisal
Committee to
the
implementatio
n of the
company's
measures to
cover the
return; 5. If
the company
launches an
equity
incentive plan
19
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
in the future,
it is pledged
that the
exercise
conditions of
the equity
incentive plan
are linked to
the
implementatio
n of the
company's
compensation
measures.
The allocated
shares will be
locked for 12
months from
the date of the
Liaoning
listing of the Within 12
Communicati Restricted
newly issued months from In normal
ons shares 5 Mar 2018
non-public the first day of performance
Investment commitment
offering of listing
Co. Ltd
shares and
will not be
transferred
during this
period.
The allocated
shares will be
locked for 12
months from
the date of the
CCB Principal listing of the Within 12
Restricted
Asset newly issued months from In normal
shares 5 Mar 2018
Management non-public the first day of performance
commitment
Co., Ltd. offering of listing
shares and
will not be
transferred
during this
period.
BeiXin Restricted The allocated 5 Mar 2018 Within 12 In normal
20
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
RuiFeng Fund shares shares will be months from performance
Management commitment locked for 12 the first day of
Co., Ltd. months from listing
the date of the
listing of the
newly issued
non-public
offering of
shares and
will not be
transferred
during this
period.
The allocated
shares will be
locked for 12
months from
the date of the
China Life listing of the Within 12
Restricted
AMP Asset newly issued months from In normal
shares 5 Mar 2018
Management non-public the first day of performance
commitment
Co., Ltd. offering of listing
shares and
will not be
transferred
during this
period.
Stock option incentive commitment
Other commitments made to minority
shareholders
Whether the commitment is fulfilled
Yes
in time
IV. Appointment and Dismiss of Certified Public Accountant’s Firm
Whether the semi-annual report has been audited
□ Yes √ No
The semi-annual report has not been audited
V. Illustrations of the Board of Directors and Supervisory Committee on the Non-standard
Audit Report Issued by the CPAs for this Reporting Period
□ Applicable √ Not applicable
21
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
VI. Illustrations of the Board of Directors on the Non-standard Audit Report Issued by the
CPAs for Previous Reporting Period
□ Applicable √ Not applicable
VII. Bankrupt and Reforming Events
□ Applicable √ Not applicable
There was no bankrupt and reforming event during the reporting period.
VIII. Lawsuits and Arbitrations
Significant lawsuits and arbitrations
□ Applicable √ Not applicable
There was no significant lawsuit or arbitrations during the reporting period.
Other lawsuits and arbitrations
□ Applicable √ Not applicable
IX. Punishment and Rectification
□ Applicable √ Not applicable
There was no punishment or rectification during the reporting period.
X. Credit Status of the Company and its Controlling Shareholders and Actual Controllers
□ Applicable √ Not applicable
XI. Implementation Situation of Stock Incentive Plan of the Company, Employee Stock
Ownership Plan or Other Employee Incentive Measures
□ Applicable √ Not applicable
There was no stock incentive plan, employee stock ownership plan or other employee incentives that have been implemented.
XII. Major Related Party Transactions
1. Related party transactions relevant to daily operations
√ Applicable □ Not applicable
Amount The Whether
Type of Content Content Price of Proporti Whether Whether
of approve exceed Index
related of of related on of exceed exceed Date of
Related Relation related d the of
party related related party similar the the disclosu
parties ship party trading approve disclos
transacti party party transacti transacti approve approve re
transacti limit of d ure
ons transacti transacti ons ons d d
ons transacti limited
22
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
ons ons RMB ons (Y/N) limited limited
10,000 RMB
10,000
Benxi
Purchas Account Execute
Steel &
Parent e of s On Related accordin
Iron 19,767.0 20 Apr 2018-0
Compan goods payable agreeme agreeme 0.00% 35,000 No g to the No
(Group) 5 2018 19
y and for nt nt price agreeme
Co.,
services repair nt
Ltd.
Benxi
Purchas Execute
Steel &
Parent e of Land On Related accordin
Iron 20 Apr 2018-0
Compan goods leasing agreeme agreeme 2,734.57 0.00% No g to the No
(Group) 2018 19
y and fee nt nt price agreeme
Co.,
services nt
Ltd.
Bengan
g
Cold-rol Purchas Execute
led Same e of On Related accordin
20 Apr 2018-0
Stainles controll goods Products agreeme agreeme 64.19 0.00% 500 No g to the No
2018 19
s Steel er and nt nt price agreeme
Dandon services nt
g Co.,
Ltd.
Benxi
Steel & Purchas Execute
Iron Same e of On Related accordin
Labor 20 Apr 2018-0
(Group) controll goods agreeme agreeme 386.75 0.00% No g to the No
cost 2018 19
Mining er and nt nt price agreeme
Co., services nt
Ltd.
Benxi
Raw
Steel & Purchas Execute
material
Iron Same e of On Related accordin
and 203,816. 20 Apr 2018-0
(Group) controll goods agreeme agreeme 0.00% 400,000 No g to the No
supplem 33 2018 19
Mining er and nt nt price agreeme
entary
Co., services nt
material
Ltd.
Benxi Purchas Raw Execute
Same On Related
Steel & e of material 12,852.8 accordin 20 Apr 2018-0
controll agreeme agreeme 0.00% 20,000 No No
Iron goods and 4 g to the 2018 19
er nt nt price
(Group) and supplem agreeme
23
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Metallur services entary nt
gy material
Residue
s Co.,
Ltd.
Benxi
Steel &
Iron
(Group) Purchas Execute
Steel & Same e of On Related accordin
Processi 20 Apr 2018-0
Iron controll goods agreeme agreeme 87.67 0.00% 500 No g to the No
ng fee 2018 19
Process er and nt nt price agreeme
and services nt
Logistic
s Co.,
Ltd.
Benxi
Steel &
Iron
Purchas Execute
(Group)
Same e of Raw On Related accordin
Real-est 20 Apr 2018-0
controll goods material agreeme agreeme 3,627.99 0.00% 10,000 No g to the No
ate 2018 19
er and s nt nt price agreeme
Develop
services nt
ment
Co.,
Ltd.
Benxi
Steel &
Iron
Purchas Execute
(Group)
Same e of On Related accordin
Machine Spare 20 Apr 2018-0
controll goods agreeme agreeme 4,600.29 0.00% 25,000 No g to the No
ry parts 2018 19
er and nt nt price agreeme
Manufa
services nt
cture
Co.,
Ltd.
Benxi
Steel & Purchas Execute
Iron Same e of On Related accordin
Repair 20 Apr 2018-0
(Group) controll goods agreeme agreeme 495.18 0.00% No g to the No
services 2018 19
Machine er and nt nt price agreeme
ry services nt
Manufa
24
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
cture
Co.,
Ltd.
Benxi
Steel &
Purchas Execute
Iron
Same e of On Related accordin
(Group) Spare 20 Apr 2018-0
controll goods agreeme agreeme 191.8 0.00% No g to the No
Constru parts 2018 19
er and nt nt price agreeme
ction
services nt
Co.,
Ltd.
Benxi
Steel &
Purchas Execute
Iron
Same e of On Related accordin
(Group) Project 20 Apr 2018-0
controll goods agreeme agreeme 2,028.95 0.00% No g to the No
Constru fee 2018 19
er and nt nt price agreeme
ction
services nt
Co.,
Ltd.
Benxi
Steel &
Purchas Execute
Iron
Same e of On Related accordin
(Group) Repair 11,481.8 20 Apr 2018-0
controll goods agreeme agreeme 0.00% 60,000 No g to the No
Constru services 7 2018 19
er and nt nt price agreeme
ction
services nt
Co.,
Ltd.
Benxi
Steel & Raw
Purchas Execute
Iron material
Same e of On Related accordin
(Group) and 20 Apr 2018-0
controll goods agreeme agreeme 109.4 0.00% No g to the No
Constru supplem 2018 19
er and nt nt price agreeme
ction entary
services nt
Co., material
Ltd.
Benxi
Steel &
Purchas Execute
Iron
Same e of On Related accordin
(Group) 20 Apr 2018-0
controll goods Freight agreeme agreeme 131.35 0.00% No g to the No
Constru 2018 19
er and nt nt price agreeme
ction
services nt
Co.,
Ltd.
25
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Benxi
Steel &
Iron
Purchas Execute
(Group)
Same e of On Related accordin
Industri Spare 20 Apr 2018-0
controll goods agreeme agreeme 2,808.4 0.00% 40,000 No g to the No
al parts 2018 19
er and nt nt price agreeme
Develop
services nt
ment
Co.,
Ltd.
Benxi
Steel &
Iron Raw
Purchas Execute
(Group) material
Same e of On Related accordin
Industri and 20 Apr 2018-0
controll goods agreeme agreeme 6,730.62 0.00% No g to the No
al supplem 2018 19
er and nt nt price agreeme
Develop entary
services nt
ment material
Co.,
Ltd.
Benxi
Steel &
Iron
Purchas Execute
(Group)
Same e of On Related accordin
Industri Repair 20 Apr 2018-0
controll goods agreeme agreeme 1,829.45 0.00% No g to the No
al services 2018 19
er and nt nt price agreeme
Develop
services nt
ment
Co.,
Ltd.
Benxi
Steel &
Iron
Purchas Execute
(Group)
Same e of On Related accordin
Industri 20 Apr 2018-0
controll goods Freight agreeme agreeme 101.81 0.00% No g to the No
al 2018 19
er and nt nt price agreeme
Develop
services nt
ment
Co.,
Ltd.
Benxi Same Purchas On Related Execute
Project 20 Apr 2018-0
Steel & controll e of agreeme agreeme 91.68 0.00% No accordin No
fee 2018 19
Iron er goods nt nt price g to the
26
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(Group) and agreeme
Industri services nt
al
Develop
ment
Co.,
Ltd.
Benxi
Raw
Steel &
material
Iron
Purchas & Execute
(Group)
Same e of supplem On Related accordin
Constru 20 Apr 2018-0
controll goods entary agreeme agreeme 326.39 0.00% No g to the No
ction 2018 19
er and material nt nt price agreeme
and
services s & nt
Repairin
spare
g Co.,
parts
Ltd.
Benxi
Steel &
Iron
Purchas Execute
(Group)
Same e of On Related accordin
Constru Project 20 Apr 2018-0
controll goods agreeme agreeme 1,175.38 0.00% No g to the No
ction fee 2018 19
er and nt nt price agreeme
and
services nt
Repairin
g Co.,
Ltd.
Benxi
Steel &
Iron
Purchas Account Execute
(Group)
Same e of s On Related accordin
Constru 20 Apr 2018-0
controll goods payable agreeme agreeme 8,327.4 0.00% 30,000 No g to the No
ction 2018 19
er and for nt nt price agreeme
and
services repair nt
Repairin
g Co.,
Ltd.
Bengan Raw
Purchas Execute
g material
Same e of On Related accordin
Electron and 20 Apr 2018-0
controll goods agreeme agreeme 6,411.95 0.00% 20,000 No g to the No
ics and supplem 2018 19
er and nt nt price agreeme
Gas Co., entary
services nt
Ltd. material
27
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Bengan
Purchas Execute
g
Same e of On Related accordin
Electron Repair 20 Apr 2018-0
controll goods agreeme agreeme 1,862.9 0.00% No g to the No
ics and services 2018 19
er and nt nt price agreeme
Gas Co.,
services nt
Ltd.
Benxi
High-tec
h Purchas Execute
Drilling Same e of On Related accordin
Spare 20 Apr 2018-0
Tools controll goods agreeme agreeme 31.12 0.00% 800 No g to the No
parts 2018 19
Manufa er and nt nt price agreeme
cture services nt
Co.,
Ltd.
Benxi
New Purchas Execute
Career Same e of Labor On Related accordin
20 Apr 2018-0
Develop controll goods protecti agreeme agreeme 44.2 0.00% 2,000 No g to the No
2018 19
ment er and on fee nt nt price agreeme
Co., services nt
Ltd.
Liaonin
g Purchas Execute
Metallur Same e of On Related accordin
Spare 20 Apr 2018-0
gy controll goods agreeme agreeme 317.07 0.00% 2,000 No g to the No
parts 2018 19
Technici er and nt nt price agreeme
an services nt
College
Liaonin
g Purchas Execute
Metallur Same e of On Related accordin
Spare 20 Apr 2018-0
gy controll goods agreeme agreeme 603.74 0.00% 1,000 No g to the No
parts 2018 19
Technici er and nt nt price agreeme
an services nt
College
Bengan
g Group Purchas Execute
Internati Same e of On Related accordin
Agency 20 Apr 2018-0
onal controll goods agreeme agreeme 3,564.93 0.00% 35,000 No g to the No
fee 2018 19
Econom er and nt nt price agreeme
ic and services nt
Trading
28
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Co.,
Ltd.
Bengan
g Group
Internati Purchas Execute
onal Same e of Port On Related accordin
20 Apr 2018-0
Econom controll goods surcharg agreeme agreeme 5,690.72 0.00% No g to the No
2018 19
ic and er and es nt nt price agreeme
Trading services nt
Co.,
Ltd.
Benxi
Steel &
Iron
Purchas Execute
(Group)
Same e of On Related accordin
Informat Spare 20 Apr 2018-0
controll goods agreeme agreeme 933.25 0.00% No g to the No
ion and parts 2018 19
er and nt nt price agreeme
Automat
services nt
ic Tech
Co.,
Ltd.
Benxi
Steel &
Iron
Purchas Execute
(Group)
Same e of On Related accordin
Informat Repair 20 Apr 2018-0
controll goods agreeme agreeme 2,335.89 0.00% 7,000 No g to the No
ion and services 2018 19
er and nt nt price agreeme
Automat
services nt
ic Tech
Co.,
Ltd.
Benxi
Steel &
Iron
Purchas Execute
(Group)
Same e of On Related accordin
Thermal Heating 20 Apr 2018-0
controll goods agreeme agreeme 37.73 0.00% 2,000 No g to the No
Power costs 2018 19
er and nt nt price agreeme
Develop
services nt
ment
Co.,
Ltd.
Benxi Same Purchas Design On Related Execute 20 Apr 2018-0
231.58 0.00% 2,000 No No
Steel & controll e of fees agreeme agreeme accordin 2018 19
29
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Iron er goods nt nt price g to the
(Group) and agreeme
Designi services nt
ng
Institute
Benxi
Raw
Beiying Purchas Execute
material
Steel & Same e of On Related accordin
and 566,834. 1,700,00 20 Apr 2018-0
Iron controll goods agreeme agreeme 0.00% No g to the No
supplem 95 0 2018 19
(Group) er and nt nt price agreeme
entary
Co., services nt
material
Ltd.
Benxi
Beiying Purchas Execute
Steel & Same e of Energy On Related accordin
38,865.8 20 Apr 2018-0
Iron controll goods & agreeme agreeme 0.00% No g to the No
4 2018 19
(Group) er and Power nt nt price agreeme
Co., services nt
Ltd.
Benxi
Beiying Purchas Execute
Steel & Same e of On Related accordin
20 Apr 2018-0
Iron controll goods Freight agreeme agreeme 303.15 0.00% No g to the No
2018 19
(Group) er and nt nt price agreeme
Co., services nt
Ltd.
Benxi
Beiying Purchas Execute
Steel & Same e of On Related accordin
Labor 20 Apr 2018-0
Iron controll goods agreeme agreeme 3,931.44 0.00% No g to the No
cost 2018 19
(Group) er and nt nt price agreeme
Co., services nt
Ltd.
Benxi
Beiying Purchas Execute
Steel & Same e of On Related accordin
Spare 20 Apr 2018-0
Iron controll goods agreeme agreeme 1,064.59 0.00% No g to the No
parts 2018 19
(Group) er and nt nt price agreeme
Co., services nt
Ltd.
Liaonin Same Purchas Raw On Related Execute 20 Apr 2018-0
5,398.61 0.00% 15,000 No No
g controll e of material agreeme agreeme accordin 2018 19
30
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Hengton er goods and nt nt price g to the
g and spare agreeme
Metallur services parts nt
gical
Equipm
ent
Manufa
cture
Co.,
Ltd.
Liaonin
g Purchas Raw Execute
Hengtai Same e of material On Related accordin
20 Apr 2018-0
Heavy controll goods and agreeme agreeme 124.87 0.00% 5,000 No g to the No
2018 19
Machine er and spare nt nt price agreeme
ry Co., services parts nt
Ltd.
Liaonin
g Purchas Execute
Repair
Hengtai Same e of On Related accordin
and 20 Apr 2018-0
Heavy controll goods agreeme agreeme 1,477.37 0.00% No g to the No
labor 2018 19
Machine er and nt nt price agreeme
cost
ry Co., services nt
Ltd.
Purchas Execute
Bengan
e of Property On Related accordin
g Group Controll 20 Apr 2018-0
goods manage agreeme agreeme 31.07 0.00% 800 No g to the No
Co., er 2018 19
and ment fee nt nt price agreeme
Ltd.
services nt
Bengan
Execute
g Sales of
Same Energy On Related accordin
Electron goods 20 Apr 2018-0
controll & agreeme agreeme 51.9 0.00% 500 No g to the No
ics and and 2018 19
er Power nt nt price agreeme
Gas Co., services
nt
Ltd.
Raw
Benxi
material
Beiying Execute
Sales of &
Steel & Same On Related accordin
goods supplem 116,469. 20 Apr 2018-0
Iron controll agreeme agreeme 0.00% 260,000 No g to the No
and entary 29 2018 19
(Group) er nt nt price agreeme
services material
Co., nt
s&
Ltd.
spare
31
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
parts
Benxi
Beiying Execute
Sales of
Steel & Same On Related accordin
goods 20 Apr 2018-0
Iron controll Products agreeme agreeme 1,230.13 0.00% No g to the No
and 2018 19
(Group) er nt nt price agreeme
services
Co., nt
Ltd.
Benxi
Beiying Execute
Sales of
Steel & Same Energy On Related accordin
goods 20 Apr 2018-0
Iron controll & agreeme agreeme 5,706.89 0.00% No g to the No
and 2018 19
(Group) er Power nt nt price agreeme
services
Co., nt
Ltd.
Benxi
Steel &
Iron
Execute
(Group) Sales of
Same Energy On Related accordin
Real-est goods 20 Apr 2018-0
controll & agreeme agreeme 6.94 0.00% 850 No g to the No
ate and 2018 19
er Power nt nt price agreeme
Develop services
nt
ment
Co.,
Ltd.
Benxi
Steel &
Iron
(Group) Execute
Sales of
Steel & Same Energy On Related accordin
goods 20 Apr 2018-0
Iron controll & agreeme agreeme 37.52 0.00% 1,000 No g to the No
and 2018 19
Process er Power nt nt price agreeme
services
and nt
Logistic
s Co.,
Ltd.
Benxi
Steel & Execute
Sales of
Iron Same On Related accordin
goods 20 Apr 2018-0
(Group) controll Products agreeme agreeme 973.31 0.00% No g to the No
and 2018 19
Machine er nt nt price agreeme
services
ry nt
Manufa
32
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
cture
Co.,
Ltd.
Benxi
Steel &
Iron
Execute
(Group) Sales of
Same Energy On Related accordin
Machine goods 20 Apr 2018-0
controll & agreeme agreeme 943.21 0.00% No g to the No
ry and 2018 19
er Power nt nt price agreeme
Manufa services
nt
cture
Co.,
Ltd.
Benxi
Raw
Steel &
material
Iron
& Execute
(Group) Sales of
Same supplem On Related accordin
Machine goods 20 Apr 2018-0
controll entary agreeme agreeme 113.58 0.00% No g to the No
ry and 2018 19
er material nt nt price agreeme
Manufa services
s& nt
cture
spare
Co.,
parts
Ltd.
Benxi
Steel &
Execute
Iron Sales of
Same Energy On Related accordin
(Group) goods 20 Apr 2018-0
controll & agreeme agreeme 94.13 0.00% No g to the No
Constru and 2018 19
er Power nt nt price agreeme
ction services
nt
Co.,
Ltd.
Raw
Benxi
material
Steel &
& Execute
Iron Sales of
Same supplem On Related accordin
(Group) goods 20 Apr 2018-0
controll entary agreeme agreeme 71.24 0.00% 20,000 No g to the No
Constru and 2018 19
er material nt nt price agreeme
ction services
s& nt
Co.,
spare
Ltd.
parts
Benxi Same Sales of Energy On Related Execute
35,940.6 20 Apr 2018-0
Steel & controll goods & agreeme agreeme 0.00% 100,000 No accordin No
7 2018 19
Iron er and Power nt nt price g to the
33
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(Group) services agreeme
Mining nt
Co.,
Ltd.
Raw
Benxi material
Steel & & Execute
Sales of
Iron Same supplem On Related accordin
goods 20 Apr 2018-0
(Group) controll entary agreeme agreeme 2,831.52 0.00% No g to the No
and 2018 19
Mining er material nt nt price agreeme
services
Co., s& nt
Ltd. spare
parts
Benxi
Steel & Execute
Sales of
Iron Same On Related accordin
goods Freight 20 Apr 2018-0
(Group) controll agreeme agreeme 402.48 0.00% No g to the No
and revenue 2018 19
Mining er nt nt price agreeme
services
Co., nt
Ltd.
Benxi
Steel &
Iron
Execute
(Group) Sales of
Same Energy On Related accordin
Thermal goods 20 Apr 2018-0
controll & agreeme agreeme 2,374.96 0.00% 12,000 No g to the No
Power and 2018 19
er Power nt nt price agreeme
Develop services
nt
ment
Co.,
Ltd.
Benxi
Raw
Steel &
material
Iron
& Execute
(Group) Sales of
Same supplem On Related accordin
Thermal goods 20 Apr 2018-0
controll entary agreeme agreeme 801.85 0.00% No g to the No
Power and 2018 19
er material nt nt price agreeme
Develop services
s& nt
ment
spare
Co.,
parts
Ltd.
Benxi Same Sales of On Related Execute
Freight 20 Apr 2018-0
Steel & controll goods agreeme agreeme 8.58 0.00% No accordin No
revenue 2018 19
Iron er and nt nt price g to the
34
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(Group) services agreeme
Thermal nt
Power
Develop
ment
Co.,
Ltd.
Benxi
Steel &
Iron
Execute
(Group) Sales of
Same Energy On Related accordin
Industri goods 20 Apr 2018-0
controll & agreeme agreeme 388.54 0.00% No g to the No
al and 2018 19
er Power nt nt price agreeme
Develop services
nt
ment
Co.,
Ltd.
Benxi
Steel &
Iron
Execute
(Group) Sales of
Same On Related accordin
Industri goods 20 Apr 2018-0
controll Products agreeme agreeme 11.32 0.00% No g to the No
al and 2018 19
er nt nt price agreeme
Develop services
nt
ment
Co.,
Ltd.
Benxi
Raw
Steel &
material
Iron
& Execute
(Group) Sales of
Same supplem On Related accordin
Industri goods 20 Apr 2018-0
controll entary agreeme agreeme 1,251.78 0.00% 20,000 No g to the No
al and 2018 19
er material nt nt price agreeme
Develop services
s& nt
ment
spare
Co.,
parts
Ltd.
Benxi
Execute
Steel & Sales of
Same Energy On Related accordin
Iron goods 20 Apr 2018-0
controll & agreeme agreeme 9.01 0.00% 100 No g to the No
(Group) and 2018 19
er Power nt nt price agreeme
Informat services
nt
ion and
35
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Automat
ic Tech
Co.,
Ltd.
Benxi
Steel &
Iron
Execute
(Group) Sales of
Same Energy On Related accordin
Constru goods 20 Apr 2018-0
controll & agreeme agreeme 83.99 0.00% 1,200 No g to the No
ction and 2018 19
er Power nt nt price agreeme
and services
nt
Repairin
g Co.,
Ltd.
Benxi
Raw
Steel &
material
Iron
& Execute
(Group) Sales of
Same supplem On Related accordin
Constru goods 20 Apr 2018-0
controll entary agreeme agreeme 12.26 0.00% No g to the No
ction and 2018 19
er material nt nt price agreeme
and services
s& nt
Repairin
spare
g Co.,
parts
Ltd.
Benxi
Steel &
Iron Execute
Sales of
(Group) Same Energy On Related accordin
goods 20 Apr 2018-0
Metallur controll & agreeme agreeme 260.48 0.00% No g to the No
and 2018 19
gy er Power nt nt price agreeme
services
Residue nt
s Co.,
Ltd.
Benxi Raw
Steel & material
Iron & Execute
Sales of
(Group) Same supplem On Related accordin
goods 20 Apr 2018-0
Metallur controll entary agreeme agreeme 9,045.64 0.00% No g to the No
and 2018 19
gy er material nt nt price agreeme
services
Residue s& nt
s Co., spare
Ltd. parts
Benxi Same Sales of Freight On Related 711.36 0.00% 15,000 No Execute No 20 Apr 2018-0
36
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Steel & controll goods revenue agreeme agreeme accordin 2018 19
Iron er and nt nt price g to the
(Group) services agreeme
Metallur nt
gy
Residue
s Co.,
Ltd.
Benxi
Execute
Steel & Sales of
Parent Energy On Related accordin
Iron goods 20 Apr 2018-0
Compan & agreeme agreeme 702.65 0.00% 12,000 No g to the No
(Group) and 2018 19
y Power nt nt price agreeme
Co., services
nt
Ltd.
Raw
material
Benxi
& Execute
Steel & Sales of
Parent supplem On Related accordin
Iron goods 20 Apr 2018-0
Compan entary agreeme agreeme 270.51 0.00% No g to the No
(Group) and 2018 19
y material nt nt price agreeme
Co., services
s& nt
Ltd.
spare
parts
Benxi
New Execute
Sales of
Career Same Energy On Related accordin
goods 20 Apr 2018-0
Develop controll & agreeme agreeme 18.1 0.00% 500 No g to the No
and 2018 19
ment er Power nt nt price agreeme
services
Co., nt
Ltd.
Dalian
Execute
Boluole Sales of
Same On Related accordin
Steel goods 20 Apr 2018-0
controll Products agreeme agreeme 175.76 0.00% 1,000 No g to the No
Tube and 2018 19
er nt nt price agreeme
Co., services
nt
Ltd.
Benxi
Execute
Steel & Sales of
Same Energy On Related accordin
Iron goods 20 Apr 2018-0
controll & agreeme agreeme 3.42 0.00% 50 No g to the No
(Group) and 2018 19
er Power nt nt price agreeme
General services
nt
Hospital
37
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Liaonin
g
Raw
Hengton
material
g
& Execute
Metallur Sales of
Same supplem On Related accordin
gical goods 20 Apr 2018-0
controll entary agreeme agreeme 1,305.43 0.00% 10,000 No g to the No
Equipm and 2018 19
er material nt nt price agreeme
ent services
s& nt
Manufa
spare
cture
parts
Co.,
Ltd.
Suzhou
Execute
Bengan Sales of
Same On Related accordin
g goods 17,052.8 20 Apr 2018-0
controll Products agreeme agreeme 0.00% 30,000 No g to the No
Industri and 5 2018 19
er nt nt price agreeme
al Co., services
nt
Ltd.
Bengan
g
Cold-rol Execute
Sales of
led Same On Related accordin
goods 20 Apr 2018-0
Stainles controll Products agreeme agreeme 500 No g to the No
and 2018 19
s Steel er nt nt price agreeme
services
Dandon nt
g Co.,
Ltd.
Liaonin
g
Execute
Bengan Sales of
Same On Related accordin
g Steel goods 20 Apr 2018-0
controll Products agreeme agreeme 1,000 No g to the No
& Iron and 2018 19
er nt nt price agreeme
Commer services
nt
cial Co.,
Ltd.
Bengan Execute
Sales of
g Group Same Energy On Related accordin
goods 20 Apr 2018-0
Finance controll & agreeme agreeme 0.7 0.00% 500 No g to the No
and 2018 19
Co., er Power nt nt price agreeme
services
Ltd. nt
Bengan Sales of Execute
Controll Energy On Related 20 Apr 2018-0
g Group goods 9.47 0.00% 500 No accordin No
er & agreeme agreeme 2018 19
Co., and g to the
38
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Ltd. services Power nt nt price agreeme
nt
1,123,23 2,900,30
Total -- -- -- -- -- -- -- --
5.8 0
Details of any sales return of a large
None
amount
Give the actual situation during the
reporting period where a forecast had
been made for the total amounts of
None
routine 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 price for reference (if
applicable)
2. Related transactions relevant to asset acquisition or sold
□ Applicable √ Not applicable
There was no related transaction relevant to asset acquisition or sold during the reporting period.
3. Related transactions relevant to joint investments
□ Applicable √ Not applicable
There was no related transaction relevant to joint investments during the reporting period.
4. Credits and liabilities with related parties
√ Applicable □ Not applicable
Whether there are any non-operating related credits and debts
□ Yes √ No
There were no non-operating related credits and debts during the reporting period.
5. Other significant related transactions
□ Applicable √ Not applicable
There was no other significant related transaction during the reporting period.
XIII. Illustrations of Non-Operating Occupation of Funds by the Controlling Shareholder
and Related Parties
□ Applicable √ Not applicable
39
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
There was no non-operating occupation of funds by the controlling shareholder and related parties
XIV. Major Contracts and Their Performance
1. Trusteeship, contracting and leasing
(1) Trusteeship
□ Applicable √ Not applicable
There was no trusteeship during the reporting period.
(2) Contracting
□ Applicable √ Not applicable
There was no contracting during the reporting period.
(3) Leasing
□ Applicable √ Not applicable
There was no leasing during the reporting period.
2. Guarantee
□ Applicable √ Not applicable
There was no guarantee during the reporting period.
3. Other Major Contracts
□ Applicable √ Not applicable
There was no other major contract during the reporting period.
XV. Social Responsibilities
1. Major environmental protection situation
Whether the listed Company and its subsidiaries are among key pollution companies launched by Environmental Protection
Department
Yes
Emission
Name of main Number of Distribution standards
Name of the Mode of Emission Total
pollutants and sewage of sewage for Total Excess
company or sewage concentratio approved
characteristic emission emission pollutants emissions emissions
subsidiaries emission n emissions
pollutants points points implemente
d
40
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
There is no
Energy
approved
Bengang Plant
Continuo emission
Steel Plates COD 1 Wastewater 36 50 182.5Ton None
us from the
Co., Ltd. Treatment
government
Plant
.
Raw
material
dumper,
transfer
station,
mine
receiving
tank,
pre-dosing;
iron-making
Raw
tapping Raw
material 25;
field, materials
sintered
furnace 14-24;
30-50;
roof, mining sintered
pellet
coke tank, 6-29; pellets
30-50;
sintering 14-26;
ironmaking
head, tail, ironmaking There is no
Continuo 20-25;
fuel, 7-23; 1939.6 tons approved
Bengang us and steelmakin
solvent, steelmaking of smoke emission
Steel Plates Dust intermitt 178 g 20-50; None
whole grain, 7-27; and 6702.7 from the
Co., Ltd. ent special
pellet rotary special steel tons of dust government
emission steel 20;
kiln; 7-15; power .
power
Treatment, generation
generation
ferroalloy 5-10; cold
10-30; cold
feeding, rolling
rolling
north-south 6-18; hot
20-30; hot
reversal rolling
rolling
station, 6-15 .
20-30.
tundish,
primary
dust
removal,
secondary
dedusting,
refining and
dust
removal;
special steel
41
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
electric
furnace,
refining
furnace,
electroslag
furnace;
desulfurizati
on and
denitrificati
on of power
generation
boiler; cold
rolling acid
regeneration
, pickling,
tension
correction,
Welder,
leveling,
annealing,
roasting;
hot rolling
furnace.
Sintering Sintering
head; pellet head
Sintering
rotary kiln; 12-112;
head 200;
power pellets There is no
Continuo pellet 200;
generation 31-104; approved
Bengang us and power
boiler; cold power emission
Steel Plates Sulfur dioxide intermitt 64 generation 2918.6 Ton None
rolling generation from the
Co., Ltd. ent 100-200;
roasting, 10-32; cold government
emission cold rolling
annealing; rolling .
150; hot
hot rolling 80-100; hot
rolling 150.
heating rolling
furnace. 118-128.
Sintering Sintering
Sintering
head; pellet head
head 300; There is no
Continuo rotary kiln; 100-230;
pellets 300; approved
Bengang us and power pellets
Nitrogen power emission
Steel Plates intermitt 57 generation 119-275; 6209.1 Ton None
oxides generation from the
Co., Ltd. ent boiler; cold power
100-200; government
emission rolling generation
cold rolling .
roasting, 50-140;
300; hot
annealing; cold rolling
42
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
hot rolling 69-172; hot rolling 300.
heating rolling
furnace. 105-124.
Construction and operation of pollution prevention facilities:
In 2018, the company has issued 7 projects for the implementation of the environment protection, with an investment of 9 million
yuan, of which 2 are under construction. Other projects are in the stage of demonstration, unit selection, bidding and commission
design. The main projects include steelmaking plant 1#-7# hot metal pretreatment spraying position, slag dust hood complete closed
dust removal project, coking plant 4 furnace assembly coal, push coke and CDQ dust removal ground station ash removal system
transformation Project, energy plant condensate water well repair and on-site water quality analyzer equipment project, new dust
removal project of raw material plant Y5 transfer station, maintenance and maintenance project of plant green road facilities. Other
major environmental protection facilities investment projects include: the iron and steel plant invested more than 40 million to
transform the new No. 1 and No. 6 blast furnace raw material systems, and the top of the cast iron roof dedusting facilities; other dust
collector bags replacement. The company has a total of 71 automatic monitoring facilities for pollution sources, including 31 new
ones in 2018, and is completing the acceptance and registration work as planned.
The company has 161 sets of pollution prevention and control facilities, including 148 sets of waste gas and 13 sets of waste water.
The company strictly implements the environmental protection three simultaneous system and operates and maintains in parallel with
the main project to ensure that the pollution prevention facilities are stable and up to standard operation, and the synchronous
operation rate is 100%. 71 sets of automatic monitoring facilities for pollution sources are operating stably.
Environmental impact assessment of construction projects and other environmental protection administrative licenses:
The transformation of the company's special steel mill - the initial rolling mill renovation project, approved on May 28, 2018 (Ben
Huan Jian Biao Zi [2018] No. 02).
The first phase of the cogeneration project of the three power plants of the company's power plant completed the environmental
protection acceptance. In accordance with the independent inspection and acceptance procedures of enterprises, the environmental
protection acceptance of atmospheric and wastewater pollution prevention facilities was completed in June 2018.
Emergency plan for emergency environmental incidents:
The company and its 13 affiliated units are in accordance with the "Report on the Emergency Response of the People's Republic of
China", the "Notice on Printing and Distributing the Guidelines for Risk Assessment of Sudden Environmental Incidents of
Enterprises (Trial)", and the Recording of Emergency Response Plan for Sudden Environmental Incidents of Enterprises and
Institutions Measures (Trial) and other existing laws and regulations, revising emergency plans for emergencies, conducting risk
assessments and emergency resource investigations, completing emergency response plans for emergency environmental incidents,
risk assessment reports, and investigating reports on emergency resources in environmental protection departments.
Environmental self-monitoring program:
The pollution source monitoring points included in the monitoring plan include: 131 flue gases, 55 atmospheres, 13 waste waters, 5
noises at the boundary of the plant, and 16 dustfalls, which are monitored by frequency of weekly, monthly, seasonal and semi-annual.
And 2,430 monitoring data was obtained
Other environmental information that should be disclosed:
None.
Other environmental related information:
According to the list of key pollutant discharge enterprises issued by the Municipal Environmental Protection Bureau, in June 2018,
the environmental information disclosure of 10 units of the company was completed. The publicity contents include basic
information, sewage information, construction and operation of pollution prevention facilities, environmental impact assessment of
construction projects and other environmental protection administrative licenses, emergency response plans for environmental
43
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
emergencies, environmental self-monitoring programs and other environmental information that should be disclosed.
2. Performing corporation social responsibility of targeted poverty alleviation
The company has not carried out targeted poverty alleviation work during the reporting period and has no plan for follow-up targeted
poverty alleviation.
XVI. Other Major Issues
□ Applicable √ Not applicable
There was no need for illustrating other major issue.
XVII. Major Issues of Subsidiaries
□ Applicable √ Not applicable
44
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
VI. Status of Share Capital Changes and Shareholders
I. Share Capital Changes
1. Share capital changes
Unit: Share
Before the change Increase/decrease(+，-) After the Change
Capitalizatio
Issuing of Bonus n of
Quantity Percentage Others Subtotal Quantity Percentage
new share shares common
reserve fund
I. Restricted Share 739,371,532 739,371,532 739,371,532 19.08%
1. State-owned legal
184,842,883 184,842,883 184,842,883 4.77%
person shareholding
2.Other domestic shares 554,528,649 554,528,649 554,528,649 14.31%
Among them: domestic
554,528,649 554,528,649 554,528,649 14.31%
legal person holds shares
II. Non-restricted Shares 3,136,000,000 100.00% 3,136,000,000 80.92%
1. Common shares in
2,736,000,000 87.24% 2,736,000,000 70.60%
RMB
2. Foreign shares in
400,000,000 12.76% 400,000,000 10.32%
domestic market
III. Total shares 3,136,000,000 100.00% 739,371,532 739,371,532 3,875,371,532 100.00%
Causation of share capital changes
√ Applicable □ Not applicable
Approved by the China Securities Regulatory Commission's "Approval of the Private Issuance of Stocks of Benxi Steel Plate Co.,
Ltd."(No. 1476 of the Securities Regulatory Commission), the company has applied to Liaoning Communications Investment Co.,
Ltd., Jianxin Fund Management Co., Ltd., Beixin Ruifeng Fund Management Co., Ltd., and Guoshou Anbao Fund Management Co.,
Ltd. a total of 4 investors non - public offering 739, 371, 532 shares of common shares in RMB。
Approval of share capital changes
√ Applicable □ Not applicable
1. On June 13, 2017, the China Securities Regulatory Commission (CSRC) issued an examination and approval of the company's
application for non-public offering of shares.
2. On August 11, 2017, China Securities Regulatory Commission (CSRC) approved the issuance of Bengang Steel Plates Co., Ltd.'s
Private Issuance of Stocks (CSRC license [2017] 1476), which was received on August 21, 2017 and announced on August 22, 2017.
Status of registration process of transferred shares.
√ Applicable □ Not applicable
45
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
The company has submitted relevant registration information to the Shenzhen branch of China securities registration and clearing co.,
Ltd. On February 9, 2018.It is confirmed that the new shares will be registered in the account at the end of the trading day prior to the
date of listing and will be officially listed in the company's register of shareholders.
Influences of share capital changes on financial indices such as basic earnings per share, diluted earnings per share, and net asset per
share attributed to common shareholders
□ Applicable √ Not applicable
Other information the Company deems necessary to be disclosed or required by the authority
□ Applicable √ Not applicable
2. Changes of Restricted Shares
√ Applicable □ Not applicable
Unit：股
The number of The number of
Initial Number of
Name of the restricted shares restricted shares Reason of
restricted restricted stock Release date
shareholder released during increased during restricted stock
stock number at end of term
the current period the current period
Participation in
Liaoning the issuance of
Communications 184,842,883 184,842,883 restricted shares March 5, 2019
Investment Co., Ltd. of 184,842,883
shares
Jianxin Fund - ICBC -
Huarun Shenzhen Participation in
International the issuance of
Investment - Huarun 184,842,883 184,842,883 restricted shares March 5, 2019
trust Xingsheng No. 5 of 184,842,883
assembled funds trust shares
plan
Beixin Ruifeng Fund -
China Merchants Participation in
Bank – Beixin the issuance of
Ruifeng fund 184,842,883 184,842,883 restricted shares March 5, 2019
Fengqing No. 229 of 184,842,883
asset management shares
plan
China Life Insurance
Participation in
Fund - ICBC - China
the issuance of
Life Insurance -
184,842,883 184,842,883 restricted shares March 5, 2019
Huaxin trust No. 10
of 184,842,883
asset management
shares
plan
46
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Total 0 0 739,371,532 739,371,532 -- --
II. Securities Issuance and Listing
√ Applicable □ Not applicable
Name of
Issue price Quantity Transaction Index of
stock and its Date of Date of
Date of issue (or interest Quantity allowed to be termination information
derivative listing disclosure
rate) listed date disclosure
securities
Stocks
Bengang
Feberary 1, March 5, March 2,
Steel Plates 5.41RMB 739,371,532 739,371,532 CNINF
2018 2018 2018
Co., Ltd.
Switching company bonds, separate transactions switching company bonds and corporate bonds.
Other derivative securities
Notes on the issuance of securities during the reporting period
On August 21, 2017, the Company obtained the CSRC's License No. 1476 issued on August 11, 2017, which approved the
non-public offering of Bengang Steel Plates Co., Ltd. not to exceed 739,371,354 shares. In February 12, 2018, the Company
completed the registration of non-public offering shares and restricted shares. On March 5, 2018, the company's new shares in the
private offering were listed at a price of 5.41 yuan per share.
III. Total Number of Shareholders and Shareholding
Unit：股
Total number of common The total number of preferred shareho
shareholders at the end of the 66,016 lders voting rights restored at the end 0
reporting period of the reporting period (See Notes 8)
Shareholding of shareholders holding more than 5% or top 10 shareholders
Holding Number of Changes in Quantity of pledged or
Name of the Nature of Restricted Un-restricted
Percenta shares held at reporting frozen shares
shareholder shareholder shares held shares held
ge (%) period-end period Status Quantity
Benxi Steel & Iron State-owned Pledged 1,523,095,133
59.91% 2,321,689,670 37,278,468 2,321,689,670
(Group) Co., Ltd. legal person Frozen 45,000,000
Liaoning
State-owned
Communications 4.77% 184,842,883 184,842,883
legal person
Investment Co., Ltd.
Jianxin Fund -
ICBC - Huarun
Others 4.77% 184,842,883 184,842,883
Shenzhen
International
47
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Investment - Huarun
trust Xingsheng No.
5 assembled funds
trust plan
Beixin Ruifeng
Fund - China
Merchants Bank –
Beixin Ruifeng fund Others 4.77% 184,842,883 184,842,883
Fengqing No. 229
asset management
plan
China Life
Insurance Fund -
ICBC - China Life
Others 4.77% 184,842,883 184,842,883
Insurance - Huaxin
trust No. 10 asset
management plan
VANGUARD
EMERGING Overseas
0.21% 8,157,311 8,157,311
MARKETS STOCK legal person
INDEX FUND
Domestic
Chen Jinhong natural 0.19% 7,360,500 7,360,500
person
Domestic
Lv Ruijun natural 0.13% 5,119,800 5,119,800
person
VANGUARD
TOTAL
Overseas
INTERNATIONAL 0.12% 4,606,141 4,606,141
legal person
STOCK INDEX
FUND
Domestic
Yu Xiaofan natural 0.10% 4,002,707 4,002,707
person
Strategy investors or general legal
person becomes top 10
None
shareholders due to rights issued
(if any) (See Notes 3)
Notes to relationship or ‘action in It is unknown to the Company whether there is any related connection or ‘Action in Concert’ as
concert’ among the top 10 described by Rules of Information Disclosing Regarding Changing of Shareholding Status of
48
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
shareholders. Listed Companies existing among the above shareholders.
Shareholding of top 10 unrestricted shareholders
Un-restricted shares held at the end of the reporting Category of shares
Name of the shareholder
period Category of shares Quantity
Benxi Steel & Iron (Group) Co., Common shares in
2,321,689,670 2,321,689,670
Ltd. RMB
VANGUARD EMERGING Foreign shares
MARKETS STOCK INDEX 8,157,311 placed in domestic 8,157,311
FUND exchange
Common shares in
Chen Jinhong 7,360,500 7,360,500
RMB
Foreign shares
Lv Ruijun 5,119,800 placed in domestic 5,119,800
exchange
VANGUARD TOTAL Foreign shares
INTERNATIONAL STOCK 4,606,141 placed in domestic 4,606,141
INDEX FUND exchange
Foreign shares
Yu Xiaofan 4,002,707 placed in domestic 4,002,707
exchange
Foreign shares
Haitong International Securities
3,261,109 placed in domestic 3,261,109
Company Limited-Account Client
exchange
Common shares in
Liu Xiaoling 3,200,000 3,200,000
RMB
Foreign shares
Xu Hekun 3,127,200 placed in domestic 3,127,200
exchange
Agricultural Bank of China
Limited by Share Ltd CSI 500 Common shares in
3,000,100 3,000,100
trading open index securities RMB
investment fund
Benxi Steel & Iron (Group) Co., Ltd., the holding shareholder, has no relationship with any of
Notes to relationship or ‘action in the other shareholders among the top 10 shareholders, neither being regarded as
concert’ among the top 10 action-in-concert parties by the Information Disclosure Regulations for Change of Shareholding
non-restricted shareholders, and in PLC. The Company is not aware of any relationship among the other shareholders, neither
among the top 10 non-restricted being regarded as action-in-concert parties by the Information Disclosure Regulations for
shareholders and top 10 Change of Shareholding in PLC. The Company is not aware of any relationship among the top
shareholders 10 shareholders, neither being regarded as action-in-concert parties by the Information
Disclosure Regulations for Change of Shareholding in PLC.
49
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Benxi Steel & Iron (Group) Co., Ltd. holds 2,071,689,670 shares of the company through
Shareholders among the top 10
common securities account, and holds 250,000,000 shares of the company through investors'
participating in securities margin
credit securities accounts, totle of 2,321,689,670 shares. Liu Xiaoling holds 3,200,000 shares of
trading (if any) (see Note 4)
the company through investors' credit securities accounts.
Whether top 10 common shareholders and top 10 un-restricted common shareholders have a buy-back agreement
dealing in reporting period
□ Yes √ No
Top 10 common shareholders and top 10 un-restricted common shareholders had no buy-back agreement dealing
in reporting period.
IV. Changes of Controlling Shareholders and Substantial Controller during the Reporting Period
Change of holding shareholder
□ Applicable √ Not applicable
There was no change of holding shareholder in the report period.
Change of substantial controller
□ Applicable √ Not applicable
There was no change of substantial controller in the report period.
50
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
VII. Status of Preferred Shares
□ Applicable √ Not applicable
There was no Preferred Shares during the reporting period.
51
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
VIII. Status of Directors, Supervisors, Senior Executives
I. Change in Shares held by Directors, Supervisors and Senior Executives
√ Applicable □ Not applicable
Number of Number of The number The number
shares shares of restricted of restricted The number of
Shares Shares
increased decreased stocks stocks restricted stocks
Office held at the held at the
Name Positions at the at the granted at the granted at the granted at the
status year-begin year-end(s
reporting reporting beginning of reporting end of the
(share) hare)
period(sha period(sha the period year(shares)
re) re) year(shares) (shares)
Director、
Wang Shu In office
Chairman
Director、
Cao Aimin In office
Chairman
Director、
Han Ge General In office
Manager
Huang
Director In office
Xinghua
Independent
Jin Yongli In office
Director
Zhong Independent
In office
Tianli Director
Zhao Independent
In office
Xinan Director
Chairman of
Han Mei Supervisory In office
Committee
Li Lin Supervisor In office
Li
Supervisor In office
Zhengchun
Zhang
Supervisor In office
Yanlong
Deputy
Bao
General In office
Mingwei
Manager
52
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Deputy
Wang
General In office
Fengmin
Manager
Hu Deputy
Guangyua General In office
n Manager
Zhao
CFO In office
Zhonghua
Tang
Director Resigned
Chaosheng
Chairman of
Dong Liju Supervisory Resigned
Committee
Deputy
Wang General
Resigned
Shaoyu Manager、
CFO
Sun Secretary of
Resigned
Yanbin the Board
Total -- -- 0 0 0 0 0 0 0
II. Change in Directors, Supervisors and Senior Executives
√ Applicable □ Not applicable
Types of
Name Positions government 日期 Reason
subsidies
Tang Chaosheng Director Resigned April 4, 2018 Work Change
Chairman of
Dong Liju Supervisory Resigned April 18, 2018 Work Change
Committee
Deputy General
Wang Shaoyu Resigned April 18, 2018 Work Change
Manager、CFO
Secretary of the
Sun Yanbin Resigned April 18, 2018 Work Change
Board
Huang Xinghua Director Be Selected May 25, 2018 Be Selected
Chairman of
Han Mei Supervisory Be Selected April 18, 2018 Be Selected
Committee
Zhao Zhonghua CFO Appointment April 18, 2018 Appointment
53
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
IX. Relevant Information about Corporate Bonds
Whether there exists any un-matured corporate bonds public issued and listed on the Stock Exchange or any matured corporate bonds
which the listed company failed to pay in full at the approval date of the semi-annual report
No
54
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
X. Financial Report
I. Audit report
Whether the semi-annual report is audited
□ Yes √ No
The semi-annual report is not audited.
II. Financial Statements
Statement in Notes are carried in RMB Yuan
1. CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Prepared by: Bengang Steel Plates Co., Ltd.
Unit: Yuan
Items Ending balance Beginning balance
Current assets:
Cash at bank and on hand 18,570,241,607.21 17,037,713,410.49
Settlement provisions
Capital lent
Financial assets at fair value
through profit or loss
Derivative financial assets
Notes receivable 3,164,893,647.96 3,846,433,700.87
Accounts receivable 707,889,986.34 728,597,926.39
Prepayments 1,200,163,813.66 1,280,689,094.33
Premium receivable
Reinsurance accounts receivable
Receivable deposit for reinsurance
contract
Interests receivable 3,503,285.16 18,448,520.50
Dividends receivable
Other receivables 271,090,946.12 290,376,985.34
Redemptory financial assets for
sale
55
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Inventories 12,893,804,549.47 11,209,898,096.16
Assets classified as held for sale
Non-current assets due within one
year
Other current assets 217,616,432.96 809,322,127.79
Total current assets 37,029,204,268.88 35,221,479,861.87
Non-current assets:
Loan and advances issued
Available-for-sale financial assets 4,088,980.00 3,888,980.00
Held-to-maturity investment
Long-term receivables
Long-term equity investments 2,726,009.03 2,726,009.03
Investment properties
Fixed assets 22,739,708,839.78 23,852,067,166.10
Construction in progress 2,740,359,727.63 2,391,584,410.46
Construction materials 2,925,581.89 4,558,919.60
Disposal of fixed assets
Productive biological assets
Oil and gas assets
Intangible assets 281,428,909.47 253,884,881.48
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets 194,939,124.19 200,618,461.36
Other non-current assets 1,037,735,849.00 1,067,334,823.12
Total non-current assets 27,003,913,020.99 27,776,663,651.15
Total assets 64,033,117,289.87 62,998,143,513.02
Current Liabilities:
Short-term loans 21,784,802,700.00 21,999,103,900.00
Loan from central bank
Absorbed deposit and interbank
deposit
Loan from other financial
institutions
Financial liabilities at fair value
56
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
through profit or loss
Advance from customers
Notes payable 8,484,599,696.58 11,494,589,827.27
Accounts payable 4,250,873,101.95 3,897,668,513.77
Advance from customers 3,389,201,256.80 3,308,567,598.05
Financial assets sold for
repurchase
Handling charges and commission
payable
Employee benefits payable 42,706,379.03 43,722,537.58
Current tax liabilities 72,085,163.43 87,807,128.50
Interests payable 51,920,388.97 84,139,288.02
Dividends payable 193,768,576.60
Other payables 560,995,763.37 576,989,932.31
Reinsurance accounts payable
Provision for insurance contract
Receipt from vicariously traded
securities
Receipt from vicariously
underwriting securities
Liabilities held for sale
Non-current liabilities due within
1,040,765,614.98 3,811,540,590.84
one year
Other current liabilities 25,283,327.37 27,979,093.21
Total current liabilities 39,897,001,969.08 45,332,108,409.55
Non-current liabilities:
Long-term loans 4,406,999,573.88 2,444,185,630.28
Bonds payable
Including: Preferred stock
Perpetual bond
Long-term payables
Long-term employee benefits
payable
Special accounts payable
Estimated liabilities
Deferred income 332,205,061.30 372,785,000.00
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 4,739,204,635.18 2,816,970,630.28
Total liabilities 44,636,206,604.26 48,149,079,039.83
Shareholders’ equity:
Share capital 3,875,371,532.00 3,136,000,000.00
Other equity instruments
Including: Preferred stock
Perpetual bond
Capital reserves 12,343,209,847.29 9,114,845,542.05
Less: treasury shares
Other comprehensive income
Special reserves 15,965,124.92 475,046.75
Surplus reserves 961,105,529.85 961,105,529.85
General risk reserve
Undistributed profits 1,666,346,021.34 1,103,162,610.35
Total equity attributable to equity
18,861,998,055.40 14,315,588,729.00
holders of the parent company
Non-controlling interests 534,912,630.21 533,475,744.19
Total shareholder’s equity 19,396,910,685.61 14,849,064,473.19
Total liabilities and shareholder’s equity 64,033,117,289.87 62,998,143,513.02
Legal Representative: Wang Shu Person in charge of accounting: Lie Gao Accounting Dept. Leader: Zhao Zhonghua
2. BALANCE SHEET OF THE PARENT COMPANY
Unit: Yuan
Items Ending balance Beginning balance
Current assets:
Cash at bank and on hand 17,784,602,468.77 16,717,913,081.42
Financial assets at fair value
through profit or loss
Derivative financial assets
Notes receivable 3,592,298,525.73 3,515,361,992.96
Accounts receivable 441,694,805.16 482,181,593.45
Prepayments 1,200,163,813.66 1,280,354,579.87
Interests receivable 3,503,285.16 18,377,036.96
58
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Dividends receivable
Other receivables 359,047,123.99 376,863,448.72
Inventories 10,890,539,001.27 9,228,860,225.75
Assets classified as held for sale
Non-current assets due within one
year
Other current assets 183,648,538.95 682,211,823.73
Total current assets 34,455,497,562.69 32,302,123,782.86
Non-current assets:
Available-for-sale financial assets 3,888,980.00 3,888,980.00
Held-to-maturity investment
Long-term receivables
Long-term equity investments 2,016,281,902.16 1,756,981,902.16
Investment properties
Fixed assets 20,682,878,459.91 21,621,369,452.27
Construction in progress 2,729,970,930.48 2,383,533,130.37
Construction materials 2,500,795.57 4,134,133.28
Disposal of fixed assets
Productive biological assets
Oil and gas assets
Intangible assets 150,429,246.60 152,082,315.24
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets 94,510,584.16 100,189,921.33
Other non-current assets 1,037,735,849.00 1,037,735,849.00
Total non-current assets 26,718,196,747.88 27,059,915,683.65
Total assets 61,173,694,310.57 59,362,039,466.51
Current Liabilities:
Short-term loans 20,221,393,300.00 20,499,694,500.00
Financial liabilities at fair value
through profit or loss
Advance from customers
Notes payable 7,860,203,778.44 10,866,669,546.93
Accounts payable 5,337,269,401.91 4,184,763,509.38
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Advance from customers 3,372,558,263.64 3,217,423,443.14
Employee benefits payable 42,355,769.94 42,380,713.02
Current tax liabilities 59,951,664.39 66,903,531.67
Interests payable 39,344,592.42 79,074,426.27
Dividends payable 193,768,576.60
Other payables 322,657,246.84 343,211,639.65
Liabilities held for sale
Non-current liabilities due within
1,040,765,614.98 3,811,540,590.84
one year
Other current liabilities 25,283,327.37 27,979,093.21
Total current liabilities 38,515,551,536.53 43,139,640,994.11
Non-current liabilities:
Long-term loans 4,406,999,573.88 2,444,185,630.28
Bonds payable
Including: Preferred stock
Perpetual bond
Long-term payables
Long-term employee benefits
payable
Special accounts payable
Estimated liabilities
Deferred income 332,205,061.30 372,785,000.00
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 4,739,204,635.18 2,816,970,630.28
Total liabilities 43,254,756,171.71 45,956,611,624.39
Shareholders’ equity:
Share capital 3,875,371,532.00 3,136,000,000.00
Other equity instruments
Including: Preferred stock
Perpetual bond
Capital reserves 11,923,058,165.17 8,694,693,859.93
Less: treasury shares
Other comprehensive income
Special reserves 13,268,084.12 276,727.96
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Surplus reserves 961,105,529.85 961,105,529.85
Undistributed profits 1,146,134,827.72 613,351,724.38
Total shareholder’s equity 17,918,938,138.86 13,405,427,842.12
Total liabilities and shareholder’s equity 61,173,694,310.57 59,362,039,466.51
3. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unit: Yuan
Items January to June 2018 January to June 2017
1. Total operating income 23,441,247,377.14 20,736,486,903.74
Including: Operating income 23,441,247,377.14 20,736,486,903.74
Interest income
Premium earned
Income from handling
charges and commission
2. Total operating cost 22,717,986,325.30 20,109,129,759.95
Including: Operating cost 20,804,207,420.98 18,690,665,966.11
Interest cost
Expenditure for handling
charges and commission
Surrender value
Net expenditure for
compensation
Net provision for insurance
contract appropriated
Bonus payment for policy
Reinsurance premium
Taxes and surcharges 153,307,375.64 133,756,731.07
Selling and distribution
514,038,008.95 587,632,707.43
expenses
General and administrative
464,313,066.09 358,951,405.08
expenses
Financial expenses 803,038,417.28 381,513,404.80
Asset impairment loss -20,917,963.64 -43,390,454.54
Add: Gains from the change in fair
value ("-" for loss)
Income on investment ("-" for 3,493,150.68 3,294,593.14
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
loss)
Including: Income from
associates and joint ventures
Exchange Income ("-" for loss)
Gains from disposal of Assets
825,580.63 3,015,294.00
("-" for loss)
Other Income 41,274,238.70 15,047,000.00
3. Operating profit ("-" for loss) 768,854,021.85 648,714,030.93
Add: Non-operating income 2,138,397.80 2,952,194.58
Less: Non-operating expenses 1,382,402.26 4,593,420.30
4. Total profit ("-" for loss) 769,610,017.39 647,072,805.21
Less: Income tax expenses 11,636,226.04 117,105,061.16
5. Net Profit ("-" for loss) 757,973,791.35 529,967,744.05
(1) Net profit from continuing
757,973,791.35 529,967,744.05
operations ("-" for loss)
(2) Net profit from discontinuing
operation ("-" for loss)
Attributable to: Owners of parent
756,951,987.59 523,635,653.57
company
Non-controlling shareholders 1,021,803.76 6,332,090.48
6. Other comprehensive income after tax
Other comprehensive income
attributable to owners of parent company
after tax
1) Other comprehensive income
unable to be reclassified into profit and
loss afterwards
(1) .Change of net liabilities
or net assets through re-measuring
defined benefit plan
(2) .Share of other
comprehensive income of investee not to
be classified into profit or loss afterwards
under equity method
2) Other comprehensive income to
be reclassified into profit and loss
afterwards
(1) .Share of other
62
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
comprehensive income of investee to be
classified into profit or loss afterwards
under equity method
(2). Gains and losses on
re-measuring available-for-sale financial
assets
(3) .Gains and losses
resulting from reclassification of held-to
maturity investment to financial assets
held-for sale
(4) .Effective portion of
gains or losses from cash flow hedging
(5) .Gains and losses resultin
g from translating the foreign currency
financial statements
(6) .Others
Other comprehensive income
attributable to non-controlling
shareholders after tax
7. Total comprehensive income
Total comprehensive income
757,973,791.35 529,967,744.05
attributable to owners of parent company
Total comprehensive income
attributable to non-controlling 756,951,987.59 523,635,653.57
shareholders
8. Earnings per share: 1,021,803.76 6,332,090.48
1) Basic earnings per share
2) Diluted earnings per share 0.195 0.167
The current business combination under common control, the net profits of the combined party before achieved: Yuan, net profit of
previous period of the combined party realized: Yuan.
Legal Representative: Wang Shu Person in charge of accounting: Gao Lie Accounting Dept. Leader: Zhao Zhonghua
4. INCOME STATEMENT OF THE PARENT COMPANY
Unit: Yuan
Items January to June 2018 January to June 2017
1. Turnover 23,682,865,109.14 21,197,516,779.20
Less: Operating cost 21,401,191,962.20 19,482,976,074.32
Taxes and surcharges 135,543,392.96 116,783,416.00
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Selling and distribution
265,554,867.46 373,519,186.39
expenses
General and administrative
440,663,658.86 336,370,276.02
expenses
Financial expenses 774,523,490.60 350,175,885.42
Asset impairment loss -20,917,963.64 -43,390,454.54
Add: Gains from the change in fair
value ("-" for loss)
Income on investment ("-" for
3,493,150.68 105,369,227.90
loss)
Including: Income from
associates and joint ventures
Gains from disposal of Assets
825,580.63 3,015,294.00
("-" for loss)
Other Income 41,274,238.70 15,047,000.00
2. Operating profit ("-" for loss) 731,898,670.71 704,513,917.49
Add: Non-operating income 1,714,748.66 2,214,787.86
Less: Non-operating expenses 1,382,402.26 4,593,420.30
3. Total profit ("-" for loss) 732,231,017.11 702,135,285.05
Less: Income tax expenses 5,679,337.17 100,308,537.10
4. Net Profit ("-" for loss) 726,551,679.94 601,826,747.95
1) Net profit from continuing operations 726,551,679.94 601,826,747.95
2) Net profit from discontinuing operation
5. Other comprehensive income after
tax
1) Other comprehensive income
unable to be reclassified into profit and
loss afterwards
(1) .Change of net
liabilities or net assets through
re-measuring defined benefit plan
(2) .Share of other
comprehensive income of investee not
to be classified into profit or loss
afterwards under equity method
2) Other comprehensive income to
be reclassified into profit and loss
afterwards
64
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(1) .Share of other
comprehensive income of investee to be
classified into profit or loss afterwards
under equity method
(2) Gains and losses on
re-measuring available-for-sale
financial assets
(3) .Gains and losses
resulting from reclassification of held-to
maturity investment to financial assets
held-for sale
(4) .Effective portion of
gains or losses from cash flow hedging
(5) .Gains and losses resulti
ng from translating the foreign currency
financial statements
(6) .Others
6. Total comprehensive income 726,551,679.94 601,826,747.95
7. Earnings per share:
1) Basic earnings per share
2) Diluted earnings per share
5. CONSOLIDATED STATEMENT OF CASH FLOWS
Unit: Yuan
Items January to June 2018 January to June 2017
1. Cash flow from operating activities:
Cash received from sale of goods
15,984,735,085.76 14,489,666,407.59
or rendering of services
Net increase of customers’ deposit
and interbank deposit
Net increase of loan from central
bank
Net increase of loans from other
financial institutions
Cash received for premium of
original insurance contract
Net cash received for reinsurance
business
65
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Net increase of deposit and
investment of the insured
Net increase of Financial assets at
fair value through profit or loss
Cash from receiving interest,
handling charge and commission
Net increase of loans from other
financial institutions
Net increase of fund for buy-back
business
Tax rebate received 246,514,404.27 71,132,309.30
Other cash received relating to
81,782,480.19 87,817,078.61
operating activities
Subtotal of cash inflow received from
16,313,031,970.22 14,648,615,795.50
operation activities
Cash paid for goods and services 14,086,077,537.47 17,237,734,129.30
Net increase of customer’s loan
and advances
Net increase of deposit in central
bank and interbank deposit
Cash for payment of compensation
for original insurance contract
Cash for payment of interest,
handling charge and commission
Cash for payment of policy bonus
Cash paid to and on behalf of
779,373,374.96 719,101,828.61
employees
Cash paid for all types of taxes 406,064,168.90 390,701,219.38
Other cash paid relating to
310,997,147.42 348,384,302.93
operating activities
Subtotal of cash outflow received from
15,582,512,228.75 18,695,921,480.22
operation activities
Net cash flows generated from
730,519,741.47 -4,047,305,684.72
operating activities
2. Cash flows from investing activities:
Cash received from return on
500,000,000.00 424,000,000.00
investments
Cash received from distribution of 3,493,150.68 3,294,593.14
66
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
dividends or profit
Net cash received from disposal of
fixed assets, intangible assets and other
long-term assets
Net cash received from disposal of
subsidiary and other operating units
Other cash paid relating to
investing activities
Subtotal of cash inflow received from
503,493,150.68 427,294,593.14
investing activities
Cash paid for acquisition of fixed
assets, intangible assets and other 680,441,782.39 702,058,422.96
long-term assets
Cash paid for acquisition of
180,000,000.00
investments
Net increase of mortgage loan
Net cash received from subsidiary
and other operating unit
Other cash paid relating to
investing activities
Subtotal of cash outflows from
680,441,782.39 882,058,422.96
investing activities
The net cash flow generated by
-176,948,631.71 -454,763,829.82
investment activities
3. Cash flows from financing activities:
Proceeds from investment 3,965,799,988.19
Including: Proceeds from
investment of non-controlling
shareholders of subsidiary
Proceeds from borrowings 9,721,396,957.08 10,419,164,500.00
Cash received from bond issuance
Other proceeds relating to
financing activities
Subtotal cash inflow received from
13,687,196,945.27 10,419,164,500.00
financing activities
Cash repayments of borrowings 14,683,452,081.71 6,099,082,442.74
Cash payments for distribution of
661,538,139.82 565,025,996.70
dividends, profit or interest expenses
67
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Including: Cash paid to
non-controlling shareholders as
dividend and profit by subsidiaries
Other cash payments relating to
financing activities
Subtotal of cash outflows from
15,344,990,221.53 6,664,108,439.44
financing activities
The net cash flow generated by
-1,657,793,276.26 3,755,056,060.56
financing activities
4. Effect of foreign exchange rate
105,015,610.23 -41,586,403.20
changes on cash and cash equivalents
5. Net increase in cash and cash
-999,206,556.27 -788,599,857.18
equivalents
Add: Cash and cash equivalents at
17,037,713,410.49 12,273,574,488.67
the beginning of the period
6. Cash and cash equivalents at the
16,038,506,854.22 11,484,974,631.49
ending of the period
6. CASH FLOW STATEMENT OF THE PARENT COMPANY
Unit: Yuan
Items January to June 2018 January to June 2017
1.Cash flow from operating activities:
Cash received from sale of goods
15,778,223,117.53 14,377,855,065.89
or rendering of services
Tax rebate received 119,119,395.04 21,102,552.86
Other cash received relating to
76,026,838.22 80,547,620.06
operating activities
Subtotal of cash inflow received from
15,973,369,350.79 14,479,505,238.81
operation activities
Cash paid for goods and services 13,721,886,325.25 17,094,207,253.57
Cash paid to and on behalf of
726,170,588.86 672,852,272.11
employees
Cash paid for all types of taxes 341,018,028.32 330,314,831.68
Other cash paid relating to
222,352,157.09 244,216,504.53
operating activities
Subtotal of cash outflow received from
15,011,427,099.52 18,341,590,861.89
operation activities
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Net cash flows generated from
961,942,251.27 -3,862,085,623.08
operating activities
2. Cash flows from investing activities:
Cash received from return on
500,000,000.00 424,000,000.00
investments
Cash received from distribution of
3,493,150.68 105,353,447.08
dividends or profit
Net cash received from disposal of
fixed assets, intangible assets and other
long-term assets
Net cash received from disposal of
subsidiary and other operating units
Other cash paid relating to
investing activities
Subtotal of cash inflow received from
503,493,150.68 529,353,447.08
investing activities
Cash paid for acquisition of fixed
assets, intangible assets and other 677,920,104.21 687,313,444.96
long-term assets
Cash paid for acquisition of
259,300,000.00 180,000,000.00
investments
Net cash received from subsidiary
and other operating unit
Other cash paid relating to
investing activities
Subtotal of cash outflows from
937,220,104.21 867,313,444.96
investing activities
The net cash flow generated by
-433,726,953.53 -337,959,997.88
investment activities
3. Cash flows from financing activities:
Proceeds from investment 3,965,799,988.19
Proceeds from borrowings 8,986,529,900.00 9,396,164,500.00
Cash received from bond issuance
Other proceeds relating to
financing activities
Subtotal cash inflow received from
12,952,329,888.19 9,396,164,500.00
financing activities
Cash repayments of borrowings 13,939,938,977.79 5,345,526,396.17
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Cash payments for distribution of
635,530,683.74 399,928,132.12
dividends, profit or interest expenses
Other cash payments relating to
financing activities
Subtotal of cash outflows from
14,575,469,661.53 5,745,454,528.29
financing activities
The net cash flow generated by
-1,623,139,773.34 3,650,709,971.71
financing activities
4. Effect of foreign exchange rate
105,012,744.72 -41,635,090.04
changes on cash and cash equivalents
5. Net increase in cash and cash
-989,911,730.88 -590,970,739.29
equivalents
Add: Cash and cash equivalents at
16,713,104,199.65 11,876,536,613.66
the beginning of the period
6. Cash and cash equivalents at the
15,723,192,468.77 11,285,565,874.37
ending of the period
7. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Unit: Yuan
January to June 2018
Owner’s equity attributable to parent company
Other equity Non-co Total
Items Other
instruments Less: General Undistri ntrollin shareho
Share Capital compre Special Surplus
treasury risk buted g lder’s
Prefer Perpet
capital Other reserves hensive reserves reserves
ence ual shares reserve profits interests equity
s income
shares bond
1. Ending 3,136, 9,114,8 1,103,1 14,849,
475,046 961,105 533,475
balance of 000,00 45,542. 62,610. 064,473
.75 ,529.85 ,744.19
last year 0.00 05 35 .19
Add: Change
of accounting
policies
Correction of
errors for previous
period
Business
consolidation
under common
70
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
control
Others
2. Beginning 3,136, 9,114,8 1,103,1 14,849,
475,046 961,105 533,475
balance of 000,00 45,542. 62,610. 064,473
.75 ,529.85 ,744.19
current year 0.00 05 35 .19
3. Changes in
739,37 3,228,3 4,547,8
current year 15,490, 563,183 1,436,8
1,532. 64,305. 46,212.
(“-” for 078.17 ,410.99 86.02
00 24 42
decrease )
1) Total
756,951 1,021,8 757,973
comprehensive
,987.59 03.76 ,791.35
income
2) Capital increase 739,37 3,228,3 3,967,7
and decrease by 1,532. 64,305. 35,837.
shareholders 00 24 24
(1) Common share 739,37 3,228,3 3,967,7
invested by 1,532. 64,305. 35,837.
shareholders 00 24 24
(2) Capital input
by the holder of
other equity
instruments
(3) Share-based
payment
attributable to
owners’ equity
(4) Others
-193,76 -193,76
3) Profit
8,576.6 8,576.6
distribution
0 0
(1) Appropriation
to surplus reserves
(2) Appropriation
to general risk
reserve
(3) Profit -193,76 -193,76
distribution to 8,576.6 8,576.6
shareholders 0 0
(4) Others
4) Transfers within
71
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
shareholders’
equity
(1) Capital
reserves
transferred into
paid-in capital (or
stock)
(2) Surplus
reserves
transferred into
paid-in capital (or
stock)
(3) Surplus
reserves to recover
loss
(4) Others
15,490, 415,082 15,905,
5) Special reserves
078.17 .26 160.43
(1) Provision of 22,983, 415,082 23,398,
special reserves 003.78 .26 086.04
(2) Use of special 7,492,9 7,492,9
reserves 25.61 25.61
6) Others
3,875, 12,343, 1,666,3 19,396,
4. Ending balance 15,965, 961,105 534,912
371,53 209,847 46,021. 910,685
of current year 124.92 ,529.85 ,630.21
2.00 .29 34 .61
Unit: Yuan
January to June 2017
Owner’s equity attributable to parent company
Non-co
Other equity Total
Other ntrollin
Items instruments shareho
Less: General Undistri
Share Capital compre Special Surplus g
Prefer Perpet treasury risk buted lder’s
capital Other reserves hensive reserves reserves interest
ence ual shares reserve profits equity
s income s
shares bond
1. Ending 3,136, 9,156,8 -496,94 13,306,
372,721 961,105 549,205
balance of 000,00 45,542. 7,619.4 582,091
.86 ,529.85 ,917.49
last year 0.00 05 2 .83
Add: Change
of accounting
72
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
policies
Correction of
errors for previous
period
Business
consolidation
under common
control
Others
2. Beginning 3,136, 9,156,8 -496,94 13,306,
372,721 961,105 549,205
balance of 000,00 45,542. 7,619.4 582,091
.86 ,529.85 ,917.49
current year 0.00 05 2 .83
3. Changes in
1,600,1 1,542,4
current year -42,000, 102,324 -15,730
10,229. 82,381.
(“-” for 000.00 .89 ,173.30
77 36
decrease)
1) Total 1,600,1 1,609,3
9,280,4
comprehensive 10,229. 90,707.
77.96
income 77 73
2) Capital increase
9,000,0 9,000,0
and decrease by
00.00 00.00
shareholders
(1) Common share
invested by
shareholders
(2) Capital input
by the holder of
other equity
instruments
(3) Share-based
payment
attributable to
owners’ equity
9,000,0 9,000,0
(4) Others
00.00 00.00
3) Profit -34,024 -34,024,
distribution ,878.25 878.25
(1) Appropriation
to surplus reserves
73
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(2) Appropriation
to general risk
reserve
(3) Profit
-34,024 -34,024,
distribution to
,878.25 878.25
shareholders
(4) Others
4) Transfers within
shareholders’
equity
(1) Capital
reserves
transferred into
paid-in capital (or
stock)
(2) Surplus
reserves
transferred into
paid-in capital (or
stock)
(3) Surplus
reserves to recover
loss
(4) Others
102,324 14,226. 116,551
5) Special reserves
.89 99 .88
(1) Provision of 40,325, 14,226. 40,339,
special reserves 168.14 99 395.13
(2) Use of special 40,222, 40,222,
reserves 843.25 843.25
-42,000, -42,000,
6) Others
000.00 000.00
3,136, 9,114,8 1,103,1 14,849,
4. Ending balance 475,046 961,105 533,475
000,00 45,542. 62,610. 064,473
of current year .75 ,529.85 ,744.19
0.00 05 35 .19
8. STATEMENT OF CHANGE IN OWNER’S EQUITY OF THE PARENT COMPANY
Unit: Yuan
Items January to June 2018
74
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Other equity instruments Other Total
Less: Undistri
Share Prefere Capital comprehe Special Surplus sharehold
Perpetu treasury buted
capital nce Others reserves nsive reserves reserves er’s
al bond shares profits
shares income equity
1. Ending
3,136,00 8,694,693 276,727.9 961,105,5 613,351 13,405,42
balance of
0,000.00 ,859.93 6 29.85 ,724.38 7,842.12
last year
Add: Change
of accounting
policies
Correction of
errors for previous
period
Others
2. Beginning
3,136,00 8,694,693 276,727.9 961,105,5 613,351 13,405,42
balance of
0,000.00 ,859.93 6 29.85 ,724.38 7,842.12
current year
3. Changes in
current year 739,371, 3,228,364 12,991,35 532,783 4,513,510
(“-” for 532.00 ,305.24 6.16 ,103.34 ,296.74
decrease)
1) Total
726,551 726,551,6
comprehensive
,679.94 79.94
income
2) Capital increase
739,371, 3,228,364 3,967,735
and decrease by
532.00 ,305.24 ,837.24
shareholders
(1) Common share
739,371, 3,228,364 3,967,735
invested by
532.00 ,305.24 ,837.24
shareholders
(2) Capital input
by the holder of
other equity
instruments
(3) Share-based
payment
attributable to
owners’ equity
(4) Others
75
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
-193,76
3) Profit -193,768,
8,576.6
distribution 576.60
0
(1) Appropriation
to surplus reserves
2．Profit -193,76
-193,768,
distribution to 8,576.6
576.60
shareholders 0
3．Others
4) Transfers within
shareholders’
equity
(1) Capital
reserves
transferred into
paid-in capital (or
stock)
(2) Surplus
reserves
transferred into
paid-in capital (or
stock)
(3) Surplus
reserves to recover
loss
(4) Others
12,991,35 12,991,35
5) Special reserves
6.16 6.16
(1) Provision of 20,342,77 20,342,77
special reserves 7.03 7.03
(2) Use of special 7,351,420 7,351,420
reserves .87 .87
6) Others
1,146,1
4. Ending balance 3,875,37 11,923,05 13,268,08 961,105,5 17,918,93
34,827.
of current year 1,532.00 8,165.17 4.12 29.85 8,138.86
72
Unit: Yuan
Items January to June 2017
76
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Other equity instruments Other Total
Less: Undistri
Share Prefere Capital comprehe Special Surplus sharehold
Perpetu treasury buted
capital nce Others reserves nsive reserves reserves er’s
al bond shares profits
shares income equity
4. Ending -1,006,7
3,136,00 8,694,693 230,735.8 961,105,5 11,785,31
balance of 12,290.
0,000.00 ,859.93 9 29.85 7,835.49
last year 18
Add: Change
of accounting
policies
Correction of
errors for previous
period
Others
5. Beginning -1,006,7
3,136,00 8,694,693 230,735.8 961,105,5 11,785,31
balance of 12,290.
0,000.00 ,859.93 9 29.85 7,835.49
current year 18
6. Changes in
1,620,0
current year 1,620,110
45,992.07 64,014.
(“-” for ,006.63
56
decrease)
1) Total 1,620,0
1,620,064
comprehensive 64,014.
,014.56
income 56
2) Capital increase
and decrease by
shareholders
(1) Common share
invested by
shareholders
(2) Capital input
by the holder of
other equity
instruments
(3) Share-based
payment
attributable to
owners’ equity
(4) Others
77
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
3) Profit
distribution
(1) Appropriation
to surplus reserves
2．Profit
distribution to
shareholders
3．Others
4) Transfers within
shareholders’
equity
(1) Capital
reserves
transferred into
paid-in capital (or
stock)
(2) Surplus
reserves
transferred into
paid-in capital (or
stock)
(3) Surplus
reserves to recover
loss
(4) Others
5) Special reserves 45,992.07 45,992.07
(1) Provision of 34,507,28 34,507,28
special reserves 9.29 9.29
(2) Use of special 34,461,29 34,461,29
reserves 7.22 7.22
6) Others
4. Ending balance 3,136,00 8,694,693 276,727.9 961,105,5 613,351 13,405,42
of current year 0,000.00 ,859.93 6 29.85 ,724.38 7,842.12
III. Basic Information of the Company
Bengang Steel Plates Co., Ltd.(hereinafter referred to as “the Company”), as approved in Liao-Zheng(1997)
No. 57 by Liaoning People’s 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
People’s Republic of China(the “PRC”) on 27 June 1997 by Benxi Steel and Iron(Group) Co., Ltd.(“Bengang
78
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Group”), through reorganization of operations, assets and liabilities of its plants, namely, Steel Smelting Plant,
Primary Rolling Plant and Continuous Hot Rolling Plant.
As approved by China Securities Regulatory Commission (hereinafter referred to as “the CSRC”), the
Company issued 400,000,000 B-shares at HKD2.38 each in Shenzhen Stock Exchange on 10 June 1997. On 3
November 1997, the Company issued another 120,000,000 A-shares (Renminbi common Shares) at RMB5.40
each, and listed in Shenzhen Stock Exchange since 15 January 1998. The capital shares were totaled to
1,136,000,000 shares including 616,000,000 shares held by the promoter.
On 14 March 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. Shareholding positions have been registered with China Securities Depository & Clearing
Corporation Ltd. Shenzhen Office. However, the total amount of capital shares of Bengang Steel Plates Co.,
Ltd. was not changed through the share equity relocation action.
According to the approval document “Zheng-Jian-Gong-Si-Zi [2006] No. 126” by China Securities
Regulatory Commission on 30 June 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] No. 127 issued by
China Securities Regulatory Committee, and were exempted for the liability of undertaking the purchase offer.
The liability was caused by subscribing of the 2 billion new shares and the total shareholding was thus
increased to 2.5752 billion shares (accounting for 82.12% of the total capital shares of the Company). On 28
August 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 28 September
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 with face value of RMB1.00 per share and the placing
price was RMB 4.6733 per share.
On August 21, 2017, Bengang Steel acquired the “Security Regulatory Permission [2017] No. 1476” issued
by the China Securities Regulatory Commission on August 11, 2017. The paper approved that the non-public
issuance of Bengang Steel Plates should not exceed 739,371,354 shares. On February 12, 2018, the company
completed the registration of this non-public offering of shares and restricted shares. On March 5, 2018, the
company's non-public offering of new shares was listed, and the issue price was RMB 5.41 per share.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Up to 30 June 2018, the capital shares of Bengang Steel Plates Co., Ltd were amounted to 3,875,371,532
shares. The unified social credit code was 91210000242690243E. The registered address is 16th Renmin
Road, Pingshan District, Benxi, Liaoning Province. The registered capital is RMB 3,875,371,532. The legal
representative is Wang Shu.
The parent company of Bengang Steel Plates Co., Ltd is Benxi Steel and Iron (Group) Co., Ltd. and the actual
controller is the State-owned Assets Supervision and Administration Commission of the State Council of
Liaoning province.
Bengang Steel Plates Co., Ltd. belongs to ferrous metal smelting and rolling processing industry, and is
mainly involved in producing and trading of ferrous metal products.
The financial statements have been approved for reporting by the board of directors of the Company on 27
August 2018.
As at 30 June 2018, subsidiaries included in the Company’s consolidated financial statements are as follows:
Name of the subsidiaries
Guangzhou Bengang Steel & Iron Trading Co., Ltd.
Shanghai Bengang Metallurgy Science and Technology Co., Ltd.
Bengang Steel Plate Liaoyang Orel Ball Co., Ltd.
Dalian Benruitong Automobile Material Technologies Co., Ltd.
Changchun Bengang Steel & Iron Sales Co., Ltd.
Harbin Bengang Economic and Trading Co., Ltd.
Nanjing Bengang Steel Material Sales Ltd.
Wuxi Bengang Steel & Iron Sales Co., Ltd.
Xiamen Bengang Steel & Iron Sales Co., Ltd.
Yantai Bengang Steel & Iron Sales Co., Ltd.
Tianjin Bengang Steel & Iron Trading Co., Ltd.
Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd.
Benxi Bengang Steel Sales Co., Ltd
Chongqing Liaoben Steel & Iron Trading Co., Ltd.
Shenyang Bengang Metallurgical Science and Technology Co., Ltd.
Bengang Baojin (Shenyang) Automobile New Material Technology Co., Ltd.
For the details of the scope and changes of the consolidated financial statements of the current period, please
refer to “VI. Changes in the scope of consolidation” and “VII. Interests in other entities” in this note.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
IV. Basis of preparation
1. Basis of preparation
The financial statements have been prepared on the going concern basis of actual trading and events in
accordance with “Accounting Standards for Business Enterprises – Basic Standard” and relevant specific
standards, application materials, interpretations (together hereinafter referred to as “Accounting Standards for
Business Enterprises”) issued by the Ministry of Finance, and “Information Disclosure Rules for Companies
of securities for public issuance No. 15 – General Regulations for Financial Statements” issued by the China
Securities Regulatory Commission.
2. Going concern
The Company is operating normally and in a good condition, and thus has the capability to continue to
operate in the next twelve months from the end of reporting period
V. Significant accounting policies and accounting estimates
The following disclosed content covers the detailed accounting policies and accounting estimates that are
adopted by the Company according to the actual features of production or operation.
1. Statement of compliance with China Accounting Standards for Business Enterprises
The financial statements present truly and completely the financial position, operation results and cash flows
of the Company during the reporting period in accordance with China Accounting Standards for Business
Enterprises.
2. Accounting year
The Accounting year is from 1 January to 31 December.
3. Operating period
The operating period is twelve months.
4. Functional currency
The Company’s functional currency is RMB.
5. The accounting treatment for Business combination under/now under common control
Business consolidation 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 aquiree’s assets, liabilities
81
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(as well as the goodwill arising from the business combination) in the consolidated financial statement of the
ultimate controller on the combining date.
As for the balance between the carrying amount of the net assets obtained by the Company and the carrying
amount of the consideration paid by it (or the total par value of the shares issued), capital reserve needs to be
adjusted. If the capital reserve is not sufficient, any excess shall be adjusted against retained earnings.
Business combination involving entities now 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. Consolidation of Financial Statements
1. Scope of consolidation
The scope of consolidation of consolidated financial statements is determined based on control. All the
subsidies (including separable sections of the investees controlled by the Company) have been consolidated
into the scope of consolidation for this period ended.
2. Procedure of consolidation
The consolidated financial statements shall be presented by the parent based on the financial statements of the
parent and its subsidiaries, and using other related information. When preparing consolidated financial
statements, the parent shall consider the entire group as an accounting entity, adopt uniform accounting
policies and apply the requirements of Accounting 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
Company’s accounting policies and accounting period when preparing the consolidated financial statements.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
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 minority’s
interests in the beginning equity of a subsidiary, the excess shall be charged against the minority’s interests.
(1) Increase of new subsidiary and business
If the Company has a new subsidiary due to business combination under common control during a reporting
period, it shall adjust the beginning balance in the consolidated statement of financial position when preparing
consolidated statement of financial position. The revenue, expenses and profits of the subsidiaries from the
acquisition date to the end of the reporting period are included in the Company’s consolidated statement of
comprehensive income. The cash flow of the subsidiaries from the acquisition date to the end of the reporting
period is included in the Company’s consolidated statement of cash flows. And meanwhile the Company shall
adjust the relevant items of the comparative financial statements as if the reporting entity for the purpose of
consolidation has been in existence since the date the ultimate controlling party first obtained control.
When the Company becomes capable of exercising control over an investee under common control due to
additional investment or other reasons, Adjustment shall be made as if the reporting entity after the
combination has been in existence since the date the ultimate controlling party first obtained control. The
investment income recognized between 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 company’s consolidated statement of comprehensive income. The cash flow of the
83
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
subsidiaries from the acquisition date to the end of the reporting period is included in the Company’s
consolidated statement of cash flows.
When the Company becomes capable of exercising control over an investee now under common control due
to additional investment or other reasons, the acquirer shall re-measure its previously held equity interest in
the acquiree to its fair value at the acquisition date. The difference between the fair value and the carrying
amount shall be recognized as investment income for the period when the acquisition takes place. When the
previously-held equity investment is accounted for under the equity method, any other comprehensive income
previously recognized in relation to the acquiree’s equity changes shall be transferred to profit or loss for the
current period when the acquisition takes place. Other comprehensive income arising from
re-measurement 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 Company’s
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 Company’s consolidated statement of cash flows.
When the Company loses control over an investee due to partial disposal or other reasons, the acquirer shall
re-measure the remaining equity interests in the acquiree to its fair value at the acquisition date. The
difference, between sums of 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 acquiree’s equity changes, and other equity changes rather than changes from net
profit, other comprehensive income and profit distribution, shall be transferred to investment income for the
current period when the Company loses control over acquiree. Other comprehensive income arising from
re-measurement of defined benefit plan is excluded. When the Company loses control over a subsidiary due
to the increase of capital from other investors and thus the shareholding ratio of the Company declines,
accounting treatment shall be in accordance with the above-mentioned principles
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
84
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
or more of the following may indicate that the Company shall account for the multiple arrangements as a
single transaction:
Arrangements are entered into at the same time or in contemplation of each other;
Arrangements work together to achieve an overall commercial effect;
The occurrence of one arrangement is dependent on the occurrence of at least one other arrangement; and
One arrangement considered on its own is not economically justified, but it is economically justified when
considered together with other arrangements.
If each of the multiple transactions forms part of a bundled transaction which eventually results in loss of
control of the subsidiary, these multiple transactions shall be accounted for as a single transaction. In the
consolidated financial statements, the difference between the consideration received and the corresponding
proportion of the subsidiary’s net assets in each transaction prior to the loss of control shall be recognized in
other comprehensive income and transferred to the profit or loss when the Company eventually loses control
of the subsidiary.
If each of the multiple transactions which eventually results in loss of control of the subsidiary 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 subsidiary’s equity interest held by non-controlling shareholders, the
difference between the increase in the cost of long-term investments as a result of 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.
85
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
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 of cash and cash equivalents
For the purpose of preparing the statement of cash flows, the term “cash” refers to the cash on hand and the
unrestricted deposit. And the term “cash equivalents” refers to short-term (maturing within three months from
acquisition) and highly liquid investments that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of change in value.
9. Foreign currency transaction and translation of foreign currency financial statements
1. Foreign currency transaction
Foreign currency transactions are translated into RMB at the current rate at the day of transactions.
The foreign currency monetary items shall be translated at the spot exchange rate on the balance sheet date.
The balance of exchange arising from the difference between the spot exchange rate on the balance sheet date
and the spot exchange rate at the time of initial recognition or prior to the balance sheet date, except those
arising from the raising of special foreign debt for the purchase or construction of capitalizable assets thus
shall be capitalized according to the borrowing costs capitalization principle, shall be recorded into the profits
and losses at the current period. The foreign currency non-monetary items measured at the historical cost shall
still be translated at the spot exchange rate on the transaction date, of which the amount of functional currency
shall not be changed. The foreign currency non-monetary items measured at the fair value shall still be
translated at the spot exchange rate on the date of confirming the fair value and the balance of exchange
arising from it shall be recorded into profits and losses at the current period of disposal or capital reserves.
2. Translation of foreign currency financial statements
The asset and liability items in the statement of financial position shall be translated at a spot exchange rate
on the balance sheet date. Among the owner's equity items, except the ones as "undistributed profits", others
shall be translated at the spot exchange rate at the time when they are incurred. The income and expense items
in the statement of comprehensive income shall be translated at the spot exchange rate of the transaction date.
86
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
When disposing an overseas business, the Company shall shift the balance, which is presented under the items
of the owner's equities in the statement of financial position and arises from the translation of foreign
currency financial statements related to this oversea business, into the disposal profits and losses of the
current period. If the overseas business is disposed of partially, the Company shall calculate the balance
arising from the translation of foreign currency statements of the part of disposal based on the disposal rate
and shall shift them into the profits and losses of the current period.
10. Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments
1. Classification 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 (liabilities) at fair value through profit or loss
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 current profit and loss when occurred.
The cash dividends or interest are recognized as investment income when the Company receives such
financial assets. At the balance sheet date, the Company recognizes the fair value changes in current profit
and loss.
The Company recognizes the difference between initial recognition and fair value of the financial assets as
investment income when disposing the financial assets and at the same time adjusts the fair value changes in
current profit and loss.
(2) Held-to-maturity investment
The Held-to-maturity investments are recognized initially at fair value (minus bond interest matured but not
drawn yet) plus any related transaction cost.
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 a shorter applicable period.
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When disposing the held-to-maturity investment, the difference between the investing proceeds and the
carrying value is recognized as investment income.
(3) Receivables
Receivables from selling products and rendering services or receivable of other company not including the
receivables with quoted price in the active market (including: accounts receivable, other receivables, notes
receivable, prepayments, long-term receivables) are measured at contract price; if the receivables is of
financing nature, it shall be recognized at the present value initially.
When disposing the receivables, the difference between the proceeds and the carrying value is recognized in
current profit and loss.
(4) Available-for-sale financial assets
Available-for-sale financial assets are initially recorded at the sum of fair values (deducting cash dividends
that have been declared but not distributed and bond interests that have matured but not been drawn) and
transaction costs when acquired.
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. Determination and measurement of financial assets transfer
Where the Company 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 Company shall follow the principle of the substance over
form. Transfer of an entire financial asset can be divided into partial financial assets transfer and entire
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financial asset transfer. If the transfer of an entire financial asset satisfies the conditions for de-recognition,
the difference between the amounts of the following 2 items shall be recorded in the profits and losses of the
current period:
(1) The book value of the transferred financial asset; and
(2) The sum of consideration received from the transfer, and the accumulative amount of the changes of the
fair value originally recorded in the owners' equities (in the event that the financial asset involved in the
transfer is a financial asset Available-for-sale).
If the transfer of partial financial asset satisfies the conditions to derecognize, the entire book value of the
transferred financial asset shall, between the portion whose recognition has been stopped and the portion
whose recognition has not been stopped (under such circumstance, the service asset retained shall be deemed
as a portion of financial asset whose recognition has not been stopped) , be apportioned according to their
respective relative fair value, and the difference between the amounts of the following 2 items shall be
included into the profits and losses of the current period :
(1) The book value of the portion whose recognition has been stopped; and
(2) The sum of consideration of the portion whose recognition has been stopped, and the portion of the
accumulative amount of the changes in the fair value originally recorded in the owner's equities which is
corresponding to the portion whose recognition has been stopped (in the event that the financial asset
involved in the transfer is a financial asset Available-for-sale) .
If the transfer of financial assets does not satisfy the conditions to stop the recognition, it shall continue to be
recognized as financial assets and the consideration received shall be recognized as financial liabilities.
4. Recognition of termination of financial liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in part may the recognition
of the financial liability be terminated in all or partly.
Where the Company (debtor) enters into an agreement with a creditor so as to substitute the existing financial
liabilities by way of any new financial liability, and if the contractual stipulations regarding the new financial
liability is substantially different from that regarding the existing financial liability, it shall terminate the
recognition of the existing financial liability, and shall at the same time recognize the new financial liability.
Where the Company 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.
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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 the Company buys back part of its financial liabilities, it shall distribute, on the date of repurchase, the
carrying amount of the whole financial liabilities in light of the comparatively fair value of the part that
continues to be recognized and the part whose recognition has already been terminated. The gap between the
carrying amount which is distributed to the part whose recognition has terminated and the considerations it
has paid (including the noncash assets it has transferred out and the new financial liabilities it has assumed)
shall be recorded into the profits and losses of the current period.
5. Determination of the fair value
The fair values of the financial assets or financial liabilities measured at fair value shall be determined by
reference to the quoted prices in the active market.
6. Impairment provision of the financial assets (not including accounts receivables)
The Company shall carry out impairment review for the financial assets at the balance sheet date except for
the financial assets at fair value through profit or loss. Where there is any objective evidence proving that
such financial asset has been impaired, an impairment provision shall be made.
(1) Impairment of available-for-sale financial assets
An impairment provision shall be made where the fair value of the held-to-maturity financial assets drops
significantly at the balance sheet date or the trend of decrease is expected not to be temporary after taking
various factors into consideration. The accumulative losses arising from the decrease of the fair value of the
owners’ equity which was directly included shall be transferred out and recorded as impairment loss.
Where any available-for-sale debt instruments is recognized as having suffered from any impairment loss, if
there is any objective evidence proving that the value of the said debt instruments has been restored, and it is
objectively related to the events that occur after such loss is recognized, the impairment-related losses as
originally recognized shall be reversed and be recorded into the profits and losses of the current period.
Impairment losses incurred by investment transactions of available-for-sale equity instruments shall not be
reversed through profits and losses.
The criteria for “serious” level of the decrease of fair value of available-for-sale financial instruments are as
follows: the decrease of fair value for the equity investment with the active transaction in a market of good
liquidity is normally 50%. The decrease of fair value of the equity investment without good market liquidity
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is normally 30%; the criteria for “non-temporary” decrease of fair value is continuous decrease over 12
months; the cost of investment is based on the purchase price.
(2) Impairment of held-to-maturity investment
The impairment of the held-to-maturity investment can be measured at reference to the measurement of the
impairment of accounts receivables.
11. Receivables
(1) The recognition and provision for bad debts for the individually significant receivables
The recognition standard of bad debts provision for the Individually significant receivables refer to accounts receivable
individually significant receivables over RMB10 million or other receivables over RMB 5 million.
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
The provision for bad debts for the individually significant
between the present value of the future cash flows and the book
receivables
value of receivables shall be recognized as bad debt provision
and shall be recorded into the profits and losses at the current
period.
(2) The recognition and provision for bad debts for the receivables in portfolio
Portfolio Recognition and provision for bad debts for portfolio
Insignificant amount of receivables and unadjusted individual
Aging analysis method
receivables
Aging analysis method for bad debts provision:
√ Applicable □ Not applicable
Bad debts ratio for Bad debts ratio for
Aging
accounts receivable other receivables
1-2 years 5.00% 5.00%
2-3 years 20.00% 20.00%
Over 3 years 100.00% 100.00%
Percentage of balance method for bad debts provisions:
□ Applicable √ Not applicable
Other methods for bad debts provision:
□ Applicable √ Not applicable
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(3) Insignificant individual amounts of accounts receivable that recognize bad debts individually
Accounts receivable amount is proved to be unrecoverable with
Reasons for individual recognition and provision of bad debts
conclusive evidence.
If conclusive evidence shows the possibility of recovering the
Method of bad debts recognition and provision amount is small, recognize bad debts individually as if the
amount is unrecoverable.
12. Inventories
Whether the Company needs to obey the disclosure requirement of specific industry
No
1. Inventory classification
Inventories include material in transit, raw material, low-valued consumables, work in process, finished goods,
materials for consigned processing, etc.
2. Valuation method for inventory dispatched
The weighted average method is used to confirm the actual cost of the inventories dispatched.
3. The basis for confirming the net realizable value of inventories and the methods to make provision
for the inventories impairment loss
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. For the
inventories related to the series of products manufactured and sold in the same area, and of which the final use
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or purpose is identical or similar thereto, and if it is difficult to measure them by separating them from other
items, the provision for loss on decline in value of inventories shall be made on a combination basis.
Unless clear evidence shows that the market price is exceptionally fluctuating, the net realizable value of
inventory is based on the market price at the balance sheet date.
The net realizable value of inventory at the year-end is based on the market price at the balance sheet date.
4. Inventory system
The Company uses perpetual inventory system.
5. Amortization of low-valued consumables and packing materials
(1) Low-valued consumables shall be amortized in full amount on issuance.
(2) Packing materials shall be amortized in full amount on issuance
13. Assets classified as held for sale
The Company shall recognize components or non-current assets as held for sale when the following
conditions are satisfied simultaneously:
(1) This component can be sold immediately based only on usual terms of selling such components in current
situation.
(2) The Company has adopted a resolution on disposal of the component or non-current asset, and has been
approved by the general meeting of shareholders or the corresponding authority if required to be approved by
the shareholders by the regulation.
(3) The Company has signed an irrevocable transfer agreement with the transferee.
(4) The transfer will be completed within one year.
14. Long-term equity investments
1. Criteria of join control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing control.
Significant influence is the power to participate in the financial and operating policy decisions of the investee
but not control or join control of those policies. If the Company could exert significant influence over the
investee, the investee is the associate of the Company.
2. The initial cost of long-term equity investment from business acquisition
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(1) Long-term equity investment from business acquisition
For a business combination involving enterprises under common control, if the consideration of the
combination is satisfied by paying cash, transfer of non-cash assets or assumption of liabilities and issue of
equity securities, the initial investment cost of the long-term equity investment shall be the absorbing party’s
share of the carrying amount of the owner’s equity of the party being absorbed in the consolidated financial
statements of the ultimate controlling party at combination date.
When an investor becomes capable of exercising control over an investee under common control due to
additional investment or other reasons, the initial investment cost shall be the absorbing party’s share of the
carrying amount of the owner’s equity of the party being absorbed in the consolidated financial statements of
the ultimate controlling party at combination date.
The difference between the initial investment cost and the carrying amount of the previously-held equity
investment, together with the additional investment cost for new shares at combination date, shall be adjusted
to the capital reserve. If the balance of capital reserve is not sufficient, any excess shall be adjusted to retained
earnings.
When an investor becomes capable of exercising control over an investee now under common control due to
additional investment or other reasons, the investor shall change to the cost method and use the carrying
amount of the cost method and use the carrying amount of the previously-held equity investment, together
with the additional investment cost, as the initial investment cost under the cost method.
(2) The initial cost of the long-term equity investment other than from business acquisition
The initial cost of a long-term equity investment obtained by making payment in cash shall be the purchase
cost which is actually paid.
The initial cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the
fair value of the equity securities issued.
The initial cost of a long-term equity investment of an investor shall be the value stipulated in the investment
contract or agreement (minus cash dividend or profit declared but not paid) except the unfair value stipulated
in the contract or agreement.
If the exchange of non-monetary assets is commercial in nature and the fair values of both the assets received
and surrendered can be reliably measured, the fair value of the assets surrendered shall be used as the basis for
determining the cost of the assets received, unless there is any exact evidence showing that the fair value of
the assets received is more reliable. Where any non-monetary assets transaction does not meet the conditions
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as prescribed above, the carrying value and relevant payable taxes of the assets surrendered shall be the initial
cost of the assets received.
The initial cost of a long-term equity investment obtained by debt restructuring shall be ascertained on the
basis of fair values.
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 investor’s interest in
the fair values of an investee’s identifiable net assets at the acquisition date, no adjustment shall be made to
the initial investment cost. Where the initial cost is less than the investor’s interest in the fair values of the
investee’s identifiable net assets at the acquisition date, the difference shall be credited to profit or loss for the
current period, and the cost of the long-term equity investment shall be adjusted accordingly.
The Company shall recognize its share of the investee’s net profits or losses, as well as its share of the
investee’s other comprehensive income, as investment income or losses and other comprehensive income, and
adjust the carrying amount of the investment accordingly. The carrying amount of the investment shall be
reduced by the portion of any profit distributions or cash dividends declared by the investee that is attributable
to the investor. The investor’s share of the investee’s owners’ equity changes, other than those arising from the
investee’s net profit or loss, other comprehensive income or profit distribution, and the carrying amount of the
long-term equity investment shall be adjusted accordingly.
The investor shall recognize its share of the investee’s net profits or losses after making appropriate
adjustments based on the fair values of the investee’s 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 investor’s 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.
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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 re-measurement 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.
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When the Company can no longer exercise control over an investee due to partial disposal of equity
investment or other reasons, and with the retained interest, still has joint control of, or significant influence
over, the investee, when preparing the individual financial statements, the investor shall change to the equity
method and adjust the remaining equity investment as if the equity method had been applied from the date of
the first acquisition. If the investor cannot exercise joint control of or significant influence over the investee
after partial disposal of equity investment, the remaining equity investment shall be accounted for in
accordance with “Accounting Standard for Business Enterprises No.22-Financial instruments: Recognition
and Measurement”, and the difference between the fair value and carrying amount at the date of the loss of
control shall be charged to profit or loss for the current period.
When the equity investment disposed is acquired through business combination due to additional investment
or other reasons, in stand-alone financial statement, the remaining equity investment shall adopt cost method
or equity method, any other comprehensive income and other owner’s interests previously recognized of the
previously-held equity investment under the equity method shall be transferred proportionally.
For those remaining equity investment accounted for in accordance with “Accounting Standard for Business
Enterprises No.22-Financial instruments: Recognition and Measurement” after disposal, other comprehensive
income and other owner’s interests previously recognized shall be transferred to profit or loss in full.
15. Investment properties
Investment properties measurement method:
Cost Method
Depreciation and amortization method
The term "investment properties" refers to the real estate held for generating rent and/or capital appreciation.
The investment properties include:
(1) The land use right which has already been rented;
(2) The land use right which is held and prepared for transfer after appreciation; and
(3) The building which has already been rented (including buildings self-constructed or developed for rent
after completion or buildings being built or developed for future rent) .
The investment properties shall be measured at 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.
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16. Fixed assets
(1) Recognition of Fixed assets
The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows:
(1) They are held for the sake of producing commodities, rendering labor service, renting or business
management; and
(2) Their useful life is in excess of one fiscal year.
No fixed asset may be recognized unless it simultaneously meets the conditions as follows:
(1) The economic benefits related to the fixed asset are likely to flow into the enterprise; and
(2) The cost of the fixed asset can be measured reliably.
(2) Fixed assets depreciation
Category Fixed assets depreciation Depreciation Period Residual Value Rate Depreciation Rate
Plants and Buildings Straight line method 8-40 years 0% 2.50%-12.50%
Machinery Straight line method 4-18 years 3% 5.39%-24.25%
Transportation and other
Straight line method 5-18 years 3% 5.39%-19.40%
equipment
(3) Recognition criteria for fixed asset leased in by financial leasing and its valuation
Where a lease satisfies one or more of the following criteria, it shall be recognized as a financial leasing:
(1) The ownership of the leased asset is transferred to the lessee when the term of lease expires;
(2) The lessee has the option to buy the leased asset at a price which is expected to be far lower than the fair
value of the leased asset at the date when the option becomes exercisable;
(3) The lease term covers the major part of the use life of the leased asset; and
(4) The present value of the minimum lease payments on the lease beginning date amounts to substantially all
of the fair value of the leased asset on the lease beginning date.
On the lease beginning date, the Company 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 difference between the recorded amount of the leased asset and the long-term account payable as
unrecognized financing charges.
17. Construction in progress
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
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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 Company’s 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 costs
1. Principle of the recognition of capitalized borrowing costs
The borrowing costs shall include interest on borrowings, amortization of discounts or premiums on
borrowings, ancillary expenses, and exchange balance on foreign currency borrowings.
Where the borrowing costs incurred to an enterprise can be directly attributable to the acquisition and
construction or production of assets eligible for capitalization, it shall be capitalized and recorded into the
costs of relevant assets. Other borrowing costs shall be recognized as expenses on the basis of the actual
amount incurred, and shall be recorded into the current profits and losses.
The term "assets eligible for capitalization" shall refer to the fixed assets, investment real estate, inventories
and other assets, of which the acquisition and construction or production may take quite a long time to get
ready for its intended use or for sale.
The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements:
(1) The asset disbursements have already incurred, which shall include cash, transferred non-cash assets or
interest bearing debts paid for the acquisition and construction or production activities for preparing assets
eligible for capitalization;
(2) The borrowing costs has already incurred; and
(3) The acquisition and construction or production activities which are necessary to prepare the asset for its
intended use or sale have already started.
2. The capitalization period of borrowing costs
The capitalization period shall refer to the period from the commencement to the cessation of capitalization of
the borrowing costs, excluding the period of suspension of capitalization of the borrowing costs.
When the qualified asset under acquisition and construction or production is ready for the intended use or sale,
the capitalization of the borrowing costs shall be ceased.
Where each part of a qualified asset under acquisition and construction or production is completed separately
and is ready for use, the capitalization of the borrowing costs in relation to this part of asset shall be ceased.
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Where each part of an asset under acquisition and construction or production is completed separately and is
ready for use or sale during the continuing construction of other parts, but it cannot be used or sold until the
asset is entirely completed, the capitalization of the borrowing costs shall be ceased when the asset is
completed entirely.
3. The suspension of capitalization of borrowing costs
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the
interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended.
If the interruption is a necessary step for making the qualified asset under acquisition and construction or
production ready for the intended use or sale, the capitalization of the borrowing costs shall continue. The
borrowing costs incurred during such period shall be recognized as expenses, and shall be recorded into the
profits and losses of the current period, till the acquisition and construction or production of the asset restarts.
4. Method of calculating the capitalization rate and capitalized amount of borrowing costs
For interest expense (minus the income of interests earned on the unused borrowing loans as a deposit in the
bank or investment income earned on the loan as a temporary investment) and the ancillary expense incurred
to a specifically borrowed loan, those incurred before a qualified asset under acquisition, construction or
production is ready for the intended use or sale shall be capitalized at the incurred amount when they are
incurred, and shall be recorded into the costs of the asset eligible for capitalization.
The Company shall calculate and determine the to-be-capitalized amount of interests on the general
borrowing by multiplying the weighted average asset disbursement of the part of the accumulative asset
disbursements minus the general borrowing by the capitalization rate of the general borrowing used. The
capitalization rate shall be calculated and determined in light of the weighted average interest rate of the
general borrowing.
Where there is any discount or premium, the amount of discounts or premiums that shall be amortized during
each accounting period shall be determined by the effective interest rate method, and an adjustment shall be
made to the amount of interests in each period.
19. Biological Assets
20. Oil and gas assets
21. Intangible assets
(1) Measurement, useful life and impairment
1. Measurement of Intangible Assets
(1) Initial measurement is based on cost upon acquisition
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The cost of an intangible asset on acquisition include the purchase price, relevant taxes and other necessary
disbursements which may be directly attributable to bringing the intangible asset to the conditions for the
expected purpose. If the payment for an intangible asset is delayed beyond the normal credit conditions and it
is of the financing nature, the cost of the intangible asset shall be determined on the basis of the present value
of the purchase price.
For intangible assets obtained from debt restructuring as settlement of liabilities from debtors, initial
recognition is based on its fair value, and the difference between the debt restructured and the fair value of the
intangible assets are recognized in the current profit and loss.
For intangible assets obtained from non-monetary transactions with commercial substance, and the fair value
of the assets obtained or surrendered can be reliably measured, the initial recognition of the asset obtained is
based on the fair value of the asset surrendered, unless there is strong evidence that the fair value of the asset
obtained is more reliable. For intangible assets obtained through non-monetary transactions which do not
meet the above criteria, the initial recognition is based on the book value of the assets surrendered and the
relevant taxes payable. No gain or loss will be recognized.
(2) Subsequent Measurement
The Company shall analyze and judge the beneficial period of intangible assets upon acquisition.
Intangible assets with finite beneficial period shall be amortized under the straight-line method during the
period when the intangible asset can bring economic benefits to the enterprise. If it is unable to estimate the
beneficial period of the intangible asset, it shall be regarded as an intangible asset with uncertain service life
and shall not be amortized.
2. Estimated useful lives of intangible assets with limited useful lives:
Item Estimated useful life Criteria
Land use right 50 years Land use right certificate
The Company shall review the useful lives and amortization methods of intangible assets with limited useful
lives at each year end.
Per review, the useful lives and amortization methods of intangible assets with limited useful lives at each
year-end is the same with that of last year.
3. Determination of intangible assets with uncertain useful lives
As at the balance sheet date, the Company has no intangible assets with uncertain useful lives.
(2) Development expenditure of internal research
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1. Classification criteria for internal research phase and development phase
The expenditures for its internal research and development projects of an enterprise shall be classified into
research expenditures and development expenditures.
Research phase refers to the phase of creative and planned investigation to acquire and study to acquire and
understand new scientific or technological knowledge.
Development phase refers to the phase during which the result of research phase or other knowledge is
applied into certain projects or designs for the manufacturing of new or substantially improved material,
device and product.
2. Criteria of capitalization of development expenditure
Expenditures during the development phase of internal research and development projects shall be recognized
as intangible assets when they meet all the following criteria:
(1) It is feasible technically to complete the intangible assets for use or sale;
(2) The intention to complete and use or sell the intangible assets is present;
(3) The method of which the intangible assets generate economic benefits shall be proved, including being
able to prove that there is a potential market for the products manufactured by applying the intangible assets
or there is a potential market for the intangible assets itself or the intangible assets will be used internally;
(4) It is able to finish the development of the intangible assets, and able to use or sell the intangible assets,
with the support of sufficient technologies, financial resources and other resources; and
(5) The development expenditures of the intangible assets can be reliably measured.
The development expenditures for its internal research and development projects of the Company shall be
recorded into the profit or loss for the current period if the above said conditions are not satisfied
simultaneously. The research expenditures for its internal research and development projects of an enterprise
shall be recorded into the profit or loss for the current period when incurred.
22. Impairment of long-term assets
For long-term assets under the cost model such as fixed assets, construction in progress, intangible assets etc.,
the Company shall perform impairment tests at the period end if there is clear indication of impairment.
If the recoverable amounts of long-term assets are less than their carrying amounts, the carrying amounts of
the assets shall be written down to their recoverable amounts. The write-downs are recognized as impairment
losses and charged to current profit and loss. The recoverable amounts of long-term assets are the higher of
their fair values less costs to sell and the present values of the future cash flows expected to be derived from
the assets. The Company shall estimate its recoverable amount on an individual basis. Where it is difficult to
do so, it shall determine the recoverable amount of the group assets on the basis of the asset group to which
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the asset belongs. The term "group assets” refers to a minimum combination of assets by which the cash flows
could be generated independently
The goodwill shall be subject to an impairment test at least at the end of each year.
When the Company makes an impairment test of assets, it shall, as of the purchasing day, apportion the
carrying value of the business reputation formed by merger of enterprises to the relevant asset groups by a
reasonable method. Where it is difficult to do so, it shall be apportioned to the relevant combinations of asset
groups.
When apportioning the carrying value of the business reputation to the relevant asset groups or combinations
of asset groups, it shall be apportioned on the basis of the proportion of the fair value of each asset group or
combination of asset groups to the total fair value of the relevant asset groups or combinations of asset groups.
Where it is difficult to measure the fair value reliably, it shall be apportioned on the basis of the proportion of
the carrying value of each asset group or combination of asset groups to the total carrying value of the
relevant asset groups or combinations of asset groups.
When making an impairment test on the relevant asset groups or combination of asset groups containing
business reputation, if any evidence shows that the impairment of asset groups or combinations of asset
groups is possible, the Company shall first make an impairment test on the asset groups or combinations of
asset groups not containing business reputation, calculate the recoverable amount, compare it with the
relevant carrying value and recognize the corresponding impairment loss. Then the Company shall make an
impairment test of the asset groups or combinations of asset groups containing business reputation, and
compare the carrying value of these asset groups or combinations of asset groups (including the carrying
value of the business reputation apportioned thereto) with the recoverable amount. Where the recoverable
amount of the relevant assets or combinations of the asset groups is lower than the carrying value thereof, it
shall recognize the impairment loss of the business reputation.
Impairment losses on long-term assets shall not be reversed in subsequent accounting periods once
recognized.
23. Long-term deferred expenses
The long-term deferred expense refers to the expenses incurred but shall be borne by current and subsequent
accounting period, which is more than one year. The long-term deferred expense shall be amortized over its
beneficiary period evenly.
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24. Employee benefits
(1) Accounting treatment for short employee benefit
The Company shall recognized , in the accounting period in which an employee provides service, actually
occurred short-term employee benefits as a liability, with a corresponding charge to the profit or loss or cost
of an asset for the current period.
Payments made by an enterprise of social security contributions for employees, payments of housing funds,
and union running costs employee education costs provided in accordance with relevant requirements shall, in
the accounting period in which employees provide services, be calculated according to prescribed bases and
percentages in determining the amount of employee benefits.
The employee benefits which are non-monetary benefits shall be measured at fair value if it could be
measured reliably.
(2) Accounting treatment of post-employment benefits
1. Defined contribution plan
The Company shall recognize, in the accounting period in which an employee provides service, pension fund
and unemployment fund for employees as a liability according to the local government regulations. The
amount shall be calculated according to local prescribed bases and percentages in determining the amount of
employee benefits, with a corresponding charge to the profit or loss or cost of an asset for the current period.
2. Defined benefit plan
None.
(3) Accounting treatment of termination benefits
The Company which provides termination benefits to employees shall recognize an employee benefits
liability for termination benefits, with a corresponding charge to the profit or loss for the current period, at the
earlier of the following dates:
(1) When the Company cannot unilaterally withdraw the offer of termination benefits because of an
employment termination plan or a curtailment proposal
(2) When the Company recognizes costs or expenses related to a restructuring that involves the payment of
termination benefits
(4) Accounting treatment of other long-term employee benefits payable
None.
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25. Estimated liabilities
1. Recognition Criteria of estimated liabilities
The obligation related 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 related to the Contingencies. If the time value of money is of great
significance, the best estimate shall be determined after discounting the relevant future outflow of cash.
The best estimate shall be conducted in accordance with the following situations, respectively:
If there is a continuous range for the necessary expenses and if all the outcomes within this range are equally
likely to occur, the best estimate shall be determined in accordance with the average estimate within the range,
that is, the average of the upper and lower limit.
If there is not a sequent range for the necessary expenses and if the outcomes within this range are not equally
likely to occur, the best estimate shall be determined as follows:
(1) If the Contingencies concern a single item, it shall be determined in the light of the most likely outcome.
(2) If the Contingencies concern two or more items, the best estimate shall be calculated and determined in
accordance with all possible outcomes and the relevant probabilities.
When all or some of the expenses necessary for the liquidation of an estimated debts of an enterprise is
expected to be compensated by a third party, the compensation shall be separately recognized as an asset only
when it is virtually certain that the reimbursement will be obtained. The amount recognized for the
reimbursement shall not exceed the book value of the estimated debts.
26. Share-Based Payment
27. Preference shares, Perpetual bond and Other Financial instruments
28. Revenue
Whether the Company needs to obey disclosure requirement of specific industry
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No
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 steel and other products. Domestic sales revenue is recognized when the following
conditions are met: The Company has delivered the products to buyer under the contract, amount of product
sales revenue is determinable, received or the certificate of the right to receive the amount has been obtained
and the relevant economic benefits are likely to flow into the entity, and related costs can be measured
reliably.
Export sales revenue is recognized when the following conditions are met: the Company has undertaken the
Customs declaration and delivery has occurred under the contract, bill of lading has been obtained, amount of
product sales revenue is determinable, received or the certificate of the right to receive the amount has been
obtained and the relevant economic benefits are likely to flow into the entity, and related costs 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.
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3. Recognition Criteria for the Revenue from Providing Labor Services and Construction Contracts
under Percentage of Completion Method
Revenue from providing labor services are recognized under the percentage of completion method if the
outcome of the labor service provision transaction can be reliably measured. Percentage completed is
determined by measurement of work completed.
Total revenue from providing of labor services is determined based on the received or receivable amount
stipulated in the contract or agreement, unless the received or receivable amount as stipulated in the contract
or agreement is unfair. The Company shall, on the date of the balance sheet, ascertain the current revenue
from providing labor services by multiplying the total amount of revenues from providing labor services with
the percentage completion, less cumulative revenues recognized in the previous accounting periods. At the
same time, the enterprise shall recognize current cost of labor services by multiplying the total estimated cost
of providing of labor services with percentage completion less cumulative costs recognized in the previous
accounting periods.
If the result of a transaction concerning the providing of labor services cannot be reliably measured at the
balance sheet date, it shall be measured as follows:
(1) If the cost of labor services incurred is expected to be compensated, the revenue from the providing of
labor services shall be recognized to the extent of the cost of labor services incurred, and the cost of labor
services shall be recognized; or
(2) If the cost of labor services incurred is not expected to compensate, the cost incurred shall be recognized
in the current profit and loss, and no revenue from the providing of labor services shall be recognized.
29. Government Subsidies
(1) The judgment basis and accounting treatment of government subsidies related to assets
Government subsidies related to assets are government subsidies whose primary condition is that an entity
qualifying for them should purchase, construct or otherwise acquire long-term assets. The specific condition
of government subsidies related to assets to the Company is that, government subsidies qualifying for us
should purchase, construct or otherwise acquire long-term assets, including fiscal appropriation for fixed
assets and intangible assets acquired, finance discount of specific borrowing related to fixed assets acquired.
Government subsidies related to assets shall be recognized by deducting the subsidies at the carrying amount
of the assets or recognized as deferred income. Subsidies that recognized as deferred income shall be
recognized in profit or loss on a systematic basis over the periods during the useful lives of the relevant assets
(Subsidies related to daily activities should be figured into Other Income. Subsidies that unrelated to daily
activities should be figured into Non-operating Income).
(2) The judgment basis and accounting treatment of government subsidies related to incomes
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Government subsidies related to incomes refer to the government subsidies beside government subsidies
related to assets. The specific condition of government subsidies related to assets to the Company is that,
subsidies are acquired by us and not government subsidies related to assets. The government subsidies related
to incomes to compensate future expenses, shall be recognized as deferred income and transferred to current
profit or loss (Subsidies related to daily activities should be figured into Other Income. Subsidies that
unrelated to daily activities should be figured into Non-operating Income) in the period during which the
expenses compensation is recognized, or deduct relevant cost or loss.
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 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. Leases
(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
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
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.
Initial direct costs incurred by the Company shall be recorded in the value of the leased asset.
(2) Leased out asset
On the lease beginning date, a lessee shall record the balance between the sum of finance lease receivables
plus unguaranteed residual value and the present value of the sum as unrealized financing income, and record
rental as revenue when received for each period in the future
Initial direct costs incurred by the Company related to the leased asset shall be recorded in the initial
measurement of the finance lease receivables, and reduce the amount of revenue recognized during the lease
term.
32. Discontinuing operation
Discontinuing operation is a component that has been disposed or classified as held for sale by the Company,
and can be distinguished separately in operating and preparing financial statements when one of the following
conditions is met:
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(1) The component stands for an independent main business or a major business area;
(2) The component is a part of disposal plan of an independent main business or a major business area;
(3) The component is a subsidiary which is acquired only for sale again.
33. Significant accounting policies and change of accounting estimate
(1) Significant changes in accounting policies.
□ Applicable √ Not applicable
(2) Significant changes in accounting estimates
□ Applicable √ Not applicable
34. Others
VI. Taxes
1. Major type of taxes and corresponding tax rates
税种 Taxation Method Tax Rate
The balance of output VAT calculated
based on product sales and taxable services
Value-added Tax (VAT) revenue in accordance with the tax laws 16%, 10%, 6%
after subtracting the deductible input VAT
of the period
Based on VAT and business tax actually
City maintenance and construction tax 7%, 5%
paid
Based on VAT and business tax actually
Educational surcharges 3%, 2%
paid
Enterprise income tax Based on taxable profit 25%
Notes to whether there is different income tax rate
Tax payer Income tax rate
2. Tax Preference
None
3. Others
According to the "Notice on Adjusting the VAT Rate" issued by the Ministry of Finance and the State Administration of Taxation
(Cai Shui [2018] No. 32), the company has adjusted the 17% and 11% VAT rates to 16% and 10% since May 1, 2018.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
VII. Notes to the consolidated financial statements
1. Cash at bank and on hand
Unit: Yuan
Items Ending balance Beginning balance
Cash on hand 20,372.11 20,871.51
Cash at bank 16,038,486,482.11 12,317,555,907.42
Other monetary funds 2,531,734,752.99 4,720,136,631.56
Total 18,570,241,607.21 17,037,713,410.49
Notes:
The details of restricted monetary funds resulted from guarantee or pledge or freeze accounts are as follows:
Items Ending balance Beginning balance
Margin for bank acceptance bill 1,463,123,892.06 3,147,582,187.96
Fixed deposits or Notice deposits for
1,068,610,860.93 1,572,554,443.60
guaranty
Total 2,531,734,752.99 4,720,136,631.56
2. Financial assets at fair value through profit or loss
Unit: Yuan
Items Ending balance Beginning balance
Notes:
3. Derivative financial assets
□ Applicable √ Not applicable
4. Notes receivable
(1) Notes receivable disclosed by category
Unit: Yuan
Items Ending balance Beginning balance
Bank acceptance bill 3,004,534,752.04 3,622,042,309.91
Commercial acceptance bill 160,358,895.92 224,391,390.96
Total 3,164,893,647.96 3,846,433,700.87
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(2) The pledged acceptance bill at the year-end
Unit: Yuan
Items The pledged acceptance bill at the year-end
Bnak acceptance bill 1,801,103,300.17
Total 1,801,103,300.17
(3) The amount of Notes receivable endorsed over but not yet matured at the year-end.
Unit: Yuan
Items Derecognized ending balance Un-derecognized ending balance
Bank acceptance bill 11,045,298,083.12
Commercial acceptance bill 103,741,236.92
Total 11,045,298,083.12 103,741,236.92
(4) No Notes receivable has been transferred into accounts receivable due to inability of drawer to meet
acceptance bill at the year-end.
Unit: Yuan
Items Amount transferred to receivable accounts at year end
Notes
5. Accounts receivables
(1) Accounts receivables disclosed by category
Unit: Yuan
Ending balance Beginning balance
Provision for bad Total net
Carrying amount Carrying amount Provision for bad debts Total net
debts book
Category book value
Bad value of
Percenta Percenta Bad debts of Fixed
Amount Amount debts Fixed Amount Amount
ge ge ratio assets
ratio assets
Individually
significant and tested 47,762,3 47,762,3 47,762, 47,762,33
5.04% 100.00% 4.86% 100.00%
for impairment 37.18 37.18 337.18 7.18
individually
Accounts receivable
900,339, 192,449, 707,889,9 934,445 205,847,3 728,597,92
tested for impairment 94.96% 21.38% 95.14% 22.03%
070.86 084.52 86.34 ,274.36 47.97 6.39
by portfolio
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
948,101, 240,211, 707,889,9 982,207 253,609,6 728,597,92
Total 100.00% 100.00%
408.04 421.70 86.34 ,611.54 85.15 6.39
Accounts receivables individually significant and tested for impairment individually:
√□ Applicable □ Not applicable
Ending balance
Accounts receivable
Accounts receivable Provision for bad debts Bad debts ratio Reason
Benxi Nanfen Xinhe
47,762,337.18 47,762,337.18 100.00% Stop production
Metallurgical Co., Ltd.
Total 47,762,337.18 47,762,337.18 -- --
Accounts receivables tested for impairment by portfolio using the method of Aging analysis:
√ Applicable □ Not applicable
Unit: Yuan
Ending balance
Aging
Accounts receivables Provision for bad debts Bad debts ratio
Within 1 year (inclusive)
Within 1 year 606,575,905.21
Subtotal of within 1 year 606,575,905.21
1-2 years 32,499,752.60 1,624,987.63 5.00%
2-3 years 88,049,145.20 17,609,829.04 20.00%
Over 3 years 173,214,267.85 173,214,267.85 100.00%
Total 900,339,070.86 192,449,084.52
Receivable accounts on which bad debt provisions are provided on percentage analyze basis in a portfolio:
□ Applicable √ Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the portfolio:
None
(2) Information of provision, reversal or recovery of bad debts of current period
The provision of bad debts of current period is RMB 0.00；Bad debt provision written back was RMB13,398,263.45in the period.
Significant items of retrieving or writing back of bad debt provisions:
Unit: Yuan
Company Amount retrieved or written back way of retrieving
(3) Receivable accounts actually written off in the report period
Unit: Yuan
Items Amount written off
Significant amount written off:
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Unit: Yuan
Property of the Reason of writing Written off Created by related
Company Amount written off
receivable account off procedures transaction or not
Statement on writing off of receivable accounts:
(4) Top five debtors at the year-end
Ending balance
Company Percentage of total Provision for
Amount Accounts
receivable (%) bad debts
No. 1 298,586,735.80 31.49
No. 2 86,329,597.52 9.11 6,513,105.93
No. 3 47,762,337.18 5.04 47,762,337.18
No. 4 46,980,327.61 4.96 22,754,881.58
No. 5 34,624,704.64 3.65 8,840,761.28
Total 514,283,702.75 54.24 85,871,085.97
(5) Recognition of receivable accounts terminated
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
6. Prepayments
(1) Prepayments disclosed by aging
Unit: Yuan
Ending balance Beginning balance
Aging
Amount Percentage Amount Percentage
Within 1 year 1,179,625,676.28 98.29% 1,259,327,577.20 98.33%
1-2 years 12,847,731.88 1.07% 13,457,173.07 1.05%
2-3 years 1,535,096.44 0.13% 1,669,541.26 0.13%
Over 3 years 6,155,309.06 0.51% 6,234,802.80 0.49%
Total 1,200,163,813.66 -- 1,280,689,094.33 --
Notes:
Reason for significant prepayment aging over one year:
As at 30 June 2018, there was no significant prepayment aging over one year.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(2) Top five prepaid companies at the year-end
Name of the company Amount Percentage (%)
No. 1 707,225,626.32 58.93
No. 2 178,742,709.55 14.89
No. 3 127,417,058.31 10.62
No. 4 37,291,000.00 3.11
No. 5 24,882,543.25 2.07
Total 1,075,558,937.43 89.62
7. Interests receivable
(1) Interest receivable disclosed by category
Unit: Yuan
Items Ending balance Beginning balance
Fixed deposit 3,503,285.16 18,448,520.50
Total 3,503,285.16 18,448,520.50
(2) Significant Overdue Interest
Impairment and the
Loans Unit Ending balance Overdue period Reason
criterion
Notes:
8. Dividends receivable
(1) Dividends receivable
Unit: Yuan
Items (Company invested in) Ending balance Beginning balance
(2) Significant dividends receivable over 1 year
Unit: Yuan
Items (Company invested Impairment and the
Ending balance Aging Reason
in) criterion
Notes:
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
9. Other receivables
(1) Other receivables disclosed by category
Unit: Yuan
Ending balance Beginning balance
Provision for bad Total net
Carrying amount Carrying amount Provision for bad debts Total net
debts book
Category book value
Bad value of
Percenta Percenta Bad debts of Fixed
Amount Amount debts Fixed Amount Amount
ge ge ratio assets
ratio assets
Other receivable
339,279, 69,928,3 269,350,9 359,690 71,053,45 288,636,98
tested for impairment 99.49% 20.61% 99.52% 19.75%
331.51 85.39 46.12 ,439.99 4.65 5.34
by portfolio
Other insignificant
items but tested for 1,740,00 1,740,000 1,740,0 1,740,000.0
0.51% 0.48%
impairment 0.00 .00 00.00 0
individually
341,019, 69,928,3 271,090,9 361,430 71,053,45 290,376,98
Total 100.00% 100.00%
331.51 85.39 46.12 ,439.99 4.65 5.34
Other receivable accounts with large amount and were provided bad debt provisions individually at end of period.
□ Applicable √ Not applicable
Other receivables tested for impairment by portfolio using the method of Aging analysis:
√ Applicable □ Not applicable
Unit: Yuan
Ending balance
Aging
Other receivables Provision for bad debts Bad debts ratio
Within 1 year (inclusive)
250,287,509.96
Subtotal of within 1 year 250,287,509.96
1-2 years 8,603,549.60 430,177.48 5.00%
2-3 years 13,612,580.05 2,722,516.01 20.00%
Over 3 years 66,775,691.90 66,775,691.90 100.00%
Total 339,279,331.51 69,928,385.39
Receivable accounts on which bad debt provisions are provided on percentage analyze basis in a portfolio:
□ Applicable √ Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the portfolio:
□ Applicable √ Not applicable
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(2) Information of provision, reversal or recovery of bad debts of current period
The provision of bad debts of current period is RMB 0.00；Bad debt provision written back was RMB1,125,069.26 in the period.
Significant items of retrieving or writing back of bad debt provisions:
Unit: Yuan
Company Amount retrieved or written back way of retrieving
(3) Receivable accounts written back or retrieved in the report period
Unit: Yuan
Items Amount written off
Significant other Receivables have been written off this year:
Unit: Yuan
Reason of writing Written off Created by related
Company Property of account Amount written off
off procedures transaction or not
Notes:
(4) Other receivables disclosed by nature
Unit: Yuan
Nature Ending balance Beginning balance
Accounts 324,237,613.93 345,146,993.73
Margin and deposit 3,746,111.37 3,045,619.00
Others 13,035,606.21 13,237,827.26
Total 341,019,331.51 361,430,439.99
(5) Top five debtors at the year-end
Unit: Yuan
Percentage of total Provision for bad debts
Company Nature or content Ending balance Aging
other receivables Ending balance
Within 1 year
RMB
No. 1 Accounts 17,464,021.64 17,455,404.12, 5.12% 8,617.52
Over 3 years
RMB 8,617.52
No. 2 Within 1 year
RMB
Accounts 16,083,670.47 4.72% 176,531.88
12,553,032.8,1-2
years RMB
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
3,530,637.67
No. 3 Accounts 12,626,479.38 1-3 years 3.70% 2,462,178.25
No. 4 Accounts 9,188,976.40 Within 1 year 2.69%
No. 5 Others 5,922,247.07 Within 1 year 1.74%
Total -- 61,285,394.96 -- 17.97% 2,647,327.65
(6) Receivable accounts involving the government
Unit: Yuan
Government Subsidies Predicted time and
Company Ending balance Age at end of period
Items amount of receiving
(7) Other receivables de-recognition due to transfer of financial asset
(8) Assets and liabilities formed due to the transfer and continuous involvement of other receivables
Notes:
10. Inventories
Whether the Company needs to obey the disclosure requirement of real estate industry
No
(1) Inventories disclosed by category
Unit: Yuan
Ending balance Beginning balance
Total net book Total net book
Items
Carrying amount Impairment value of Fixed Carrying amount Impairment value of Fixed
assets assets
Raw materials 5,768,189,545.16 4,894,918.76 5,763,294,626.40 5,612,450,076.70 4,894,918.76 5,607,555,157.94
Work in process 2,021,513,151.82 20,668,681.48 2,000,844,470.34 1,689,682,178.82 23,431,222.63 1,666,250,956.19
Products 5,154,722,855.66 25,057,402.93 5,129,665,452.73 3,964,781,474.74 28,689,492.71 3,936,091,982.03
12,944,425,552.6 12,893,804,549.4 11,266,913,730.2 11,209,898,096.1
Total 50,621,003.17 57,015,634.10
4 7 6 6
Whether the Company needs to follow the disclosure requirement of “Shenzhen Stock Exchange Industry Information Disclosure
IndexNo.4 – Listed Company engaged in Seed and Plant Industry”
No
118
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(2) Impairment of inventory
Unit: Yuan
Increase in current period Decrease in current period
Beginning
Items Write-back or Ending balance
balance Provision Others Others
write-off
Raw materials 4,894,918.76 4,894,918.76
Work in process 23,431,222.63 20,668,681.48 23,431,222.63 20,668,681.48
Products 28,689,492.71 25,057,402.93 28,689,492.71 25,057,402.93
Total 57,015,634.10 45,726,084.41 52,120,715.34 50,621,003.17
(3) Statement on part of the inventory balance which was the capitalized borrowing expenses
(4) Completed unbalanced assets at the end of the period
Unit: Yuan
Items Amount
Notes:
11. Assets classified as held for sale
Unit: Yuan
Estimated Disposal
Items Ending book value Fair value Estimated Disposal Time
Expenses
Notes:
12. Non-current assets due within one year
Unit: Yuan
Items Ending balance Beginning balance
Notes:
13. Other current assets
Unit: Yuan
Items Ending balance Beginning balance
Prepaid enterprise income tax 182,228,953.96 182,938,934.20
Input tax to be deducted 35,387,479.00 120,383,193.59
Bank Short-Term Financial Products 506,000,000.00
119
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Total 217,616,432.96 809,322,127.79
Notes:
14. Available-for-sale financial assets
(1) Details of available-for-sale financial assets
Unit: Yuan
Ending balance Beginning balance
Items Carrying Total Carrying
Book value Total impairment Book value
amount impairment amount
Available-for-sale equity
18,503,673.00 14,414,693.00 4,088,980.00 18,303,673.00 14,414,693.00 3,888,980.00
instruments :
Measured at cost 18,503,673.00 14,414,693.00 4,088,980.00 18,303,673.00 14,414,693.00 3,888,980.00
Total 18,503,673.00 14,414,693.00 4,088,980.00 18,303,673.00 14,414,693.00 3,888,980.00
(2) Available-for-sale financial assets on fair value at the end of period
Unit: Yuan
Categories of
Available-for-sale equity Available-for-sale debt
Available-for-sale Total
instruments instruments
financial assets
(3) Available-for-sale financial assets measured at cost
Unit: Yuan
Carrying amount Total impairment Cash
At At Percentage dividend
Company
beginning At end of beginning At end of of share in of the
invested in Increase Decrease Increase Decrease
of the the period of the the period the firm % current
period period period
Guangzho
u Benpu
Auto Sheet 200,000.00 200,000.00 10.00%
Sales Co.,
Ltd.
Suzhou
Bengang 3,888,980. 3,888,980.
20.10%
Industrial 00 00
Co., Ltd.
120
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
China
Steel
Shanghai 14,414,693 14,414,693 14,414,693 14,414,693
15.00%
Steel .00 .00 .00 .00
Processing
Co., Ltd.
18,303,673 18,503,673 14,414,693 14,414,693
Total 200,000.00 --
.00 .00 .00 .00
(4) Change of impairment of available-for-sale financial assets in the report period
Unit: Yuan
Categories of
Available-for-sale equity Available-for-sale debt
Available-for-sale Total
instruments instruments
financial assets
(5) Notes to the fair value of the available-for-sale equity instruments drops significantly or not
contemporarily but do not prepare the impairment loss
Unit: Yuan
Available-for-sale Continuous Accrual of Reason for do not
Fall of fair value
equity Investment Cost Closing fair value falling provision for make provision
compared to cost
instruments Items period(month) impairment for impairment
Notes
15. Held-to-maturity investment
(1) Held-to-maturity investment
Unit: Yuan
Ending balance Beginning balance
Items
Carrying amount Total impairment Carrying value Carrying amount Total impairment Carrying value
(2) Significant Held-to-maturity investment at end of the period
Unit: Yuan
Bond Par value Face interest rate Actual interest rate Maturity date
(3) Reclassification to held-to-maturity investment
Notes
121
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
16. Long-term receivables
(1) Long-term receivables
Unit: Yuan
Ending balance Beginning balance
Discount rate
Items Carrying Provision for Carrying Provision for
Carrying value Carrying value interval
amount bad debts amount bad debts
(2) De-recognition long-term receivables due to transfer of financial assets
(3) Assets and liabilities formed by transferring and continuous involvement of long-term receivables
Notes
17. Long-term equity investments
Unit: Yuan
Increase or decrease Ending
Investme Adjustme balance
Company nt income nt of Declarati Provision of
Beginnin Add Reduce Other Ending
invested or loss other on of cash for provision
g balance investmen investmen equity Others balance
in under comprehe dividends impairme for
t t changes
equity nsive or profit nt impairme
method income nt
1. Joint venture
2. Associated enterprise
Zhejiang
Bengang
Elite
2,726,009 2,726,009
Steel
.03 .03
Processin
g Co.,
Ltd.
2,726,009 2,726,009
Subtotal
.03 .03
2,726,009 2,726,009
Total
.03 .03
Notes
122
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
18. Investment properties
(1) Investment properties under cost method
□ Applicable √ Not applicable
(2) Investment properties under fair value method
□ Applicable √ Not applicable
(3) Investment properties without property rights certificate
Unit: Yuan
Items Carrying value Reason
Notes
19. Fixed assets
(1) Details of fixed assets
Unit: Yuan
Transportation
Items Plants and Buildings Machinery Total
equipment
1. Total original value:
1.Beginning balance 12,311,587,761.99 41,626,541,563.48 902,411,923.49 54,840,541,248.96
2.Increase in current
637,829.46 33,999,698.90 180,000.00 34,817,528.36
period
(1) Purchase
(2) Transferred from
637,829.46 33,999,698.90 180,000.00 34,817,528.36
construction in progress
(3) Merging
3.Decrease in current
4,500,116.36 18,821,400.78 23,321,517.14
period
(1) Disposal 4,500,116.36 18,821,400.78 23,321,517.14
4.Ending balance 12,307,725,475.09 41,641,719,861.60 902,591,923.49 54,852,037,260.18
2. Total accumulated
depreciation
1.Beginning balance 5,276,168,794.08 25,159,715,530.00 541,830,618.28 30,977,714,942.36
123
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
2.Increase in current
163,421,339.99 973,734,423.39 7,828,431.62 1,144,984,195.00
period
(1) Provision 163,421,339.99 973,734,423.39 7,828,431.62 1,144,984,195.00
3.Decrease in current
4,285,981.20 16,843,876.26 21,129,857.46
period
(1) Disposal 4,285,981.20 16,843,876.26 21,129,857.46
4.Ending balance 5,435,304,152.87 26,116,606,077.13 549,659,049.90 32,101,569,279.90
3. Total impairment
1.Beginning balance 8,208,087.85 2,551,052.65 10,759,140.50
2.Increase in current
period
(1) Provision
3.Decrease in current
period
(1) Disposal
4.Ending balance 8,208,087.85 2,551,052.65 10,759,140.50
4. Total net book value
of Fixed assets
1.Ending book value 6,864,213,234.37 15,522,562,731.82 352,932,873.59 22,739,708,839.78
2.Beginning book
7,027,210,880.06 16,464,274,980.83 360,581,305.21 23,852,067,166.10
value
(2) Fixed assets temporarily in idle status
Unit: Yuan
Total accumulated Total net book
Items Total original value Total impairment Nature
depreciation value of Fixed assets
(3) Fixed asset by financial leasing
Unit: Yuan
Total accumulated Total net book value of
Items Total original value Total impairment
depreciation Fixed assets
124
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(4) Fixed assets leased out on finance
Unit: Yuan
Items Ending book value
Plants and Buildings 22,879,743.91
Machinery 4,504,638.67
Total 27,384,382.58
(5) Fixed assets without property rights certificates at the year-end
Unit: Yuan
Items Total net book value of Fixed assets Reason
Plants and Buildings 1,135,305,101.78 To be handled in batches
Notes
20. Construction in progress
(1) Details of construction in progress
Unit: Yuan
Ending balance Beginning balance
Total net book Total net book
Items
Carrying amount Total impairment value of Fixed Carrying amount Total impairment value of Fixed
assets assets
High Strength
Cold Rolling
1,248,815,568.07 1,248,815,568.07 1,187,165,940.86 1,187,165,940.86
Steel Renovation
Project
The Third Cold
Rolling Work
Hot-Dip
614,011,518.07 614,011,518.07 611,760,000.00 611,760,000.00
Galvanizing
Production Line
Project
Reconstruction
Of The Converter
System And 180
172,038,373.79 172,038,373.79 170,359,741.31 170,359,741.31
Ton
Dephophorization
Converter Project
125
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Ultrathin Pickling
Line 32,745,791.58 32,745,791.58 32,745,791.58 32,745,791.58
Modification
Information
System 34,970,271.44 34,970,271.44 32,708,961.76 32,708,961.76
Engineering
Modifing and
Upgrading of
System
32,592,428.11 32,592,428.11 27,289,578.22 27,289,578.22
Equipment such
as Hot Blast
Furnace.
The 360 Square
Meter Sintering 59,021,874.99 59,021,874.99 26,592,065.27 26,592,065.27
Machine
Automobile
Board
Engineering 20,289,005.83 20,289,005.83 20,289,005.83 20,289,005.83
Laboratory Phase
Ⅱ Project.
Energy Control
15,976,501.70 15,976,501.70 8,617,499.91 8,617,499.91
Center Project
Others 509,898,394.05 509,898,394.05 274,055,825.72 274,055,825.72
Total 2,740,359,727.63 2,740,359,727.63 2,391,584,410.46 2,391,584,410.46
(2) The change of major construction in progress
Unit: Yuan
Includin
Accumul
g:
ated
Increase capitaliz
Beginnin Input of amount
in Transfer Other Ending ed Capitaliz Source
Items Budget g Budget Progress of
current to FA decrease balance interest ation rate of fund
balance (%) capitaliz
period of
ed
current
interest
period
High
Strength
6,134,98 1,187,16 61,649,6 1,248,81 906,733, 50,832,3 Raised
Cold 85.00% 98% 3.48%
0,000.00 5,940.86 27.21 5,568.07 767.70 45.91 fund
Rolling
Steel
126
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Renovati
on
Project
The
Third
Cold
Rolling
Work
869,180, 611,760, 2,251,51 614,011,
Hot-Dip 72.00% 90%
000.00 000.00 8.07 518.07
Galvaniz
ing
Producti
on Line
Project
Reconstr
uction
Of The
Converte
r System
1,778,64 170,359, 1,678,63 172,038, 127,847,
And 180 87.00% 96%
4,000.00 741.31 2.48 373.79 567.31
Ton
Dephoph
orization
Converte
r Project
Ultrathin
Pickling 52,190,0 32,745,7 32,745,7
Line 63.00% 70%
Modifica 00.00 91.58 91.58
tion
Informat
ion 36,870,0 32,708,9 2,261,30 34,970,2 2,190,98 489,297.
System 89.00% 90% 3.48%
Engineer 00.00 61.76 9.68 71.44 3.43 87
ing
Modifin
g and
Upgradi
ng of
System 185,351, 27,289,5 5,302,84 32,592,4
64.00% 85%
Equipme 400.00 78.22 9.89 28.11
nt such
as Hot
Blast
Furnace.
The 360
Square 1,284,03 26,592,0 32,429,8 59,021,8 68,627,4
Meter 5.00% 98%
Sintering 2,000.00 65.27 09.72 74.99 33.26
Machine
127
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Automo
bile
Board
Engineer 26,000,0 20,289,0 20,289,0
ing 78.00% 80%
Laborato 00.00 05.83 05.83
ry Phase
Ⅱ
Project.
Energy
Control 294,500, 8,617,49 7,359,00 15,976,5 45,372,1
98.00% 98%
Center 000.00 9.91 1.79 01.70 34.03
Project
274,055, 270,660, 34,817,5 509,898,
Others
825.72 096.69 28.36 394.05
10,661,7
2,391,58 383,592, 34,817,5 2,740,35 1,150,77 51,321,6
Total 47,400.0 -- -- --
4,410.46 845.53 28.36 9,727.63 1,885.73 43.78
0
(3) Impairment provision provided on construction in process
Unit: Yuan
Provision for impairment of the current
Items Reason
period
Notes
21. Construction materials
Unit: Yuan
Items Ending balance Beginning balance
Special equipment 2,925,581.89 4,558,919.60
Total 2,925,581.89 4,558,919.60
Notes:
22. Disposal of fixed assets
Unit: Yuan
Items Ending balance Beginning balance
Notes:
23. Productive biological assets
(1) Productive biological assets under cost method
□ Applicable √ Not applicable
128
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(2) Productive biological assets under fair value method
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Intangible assets
(1) Details of intangible assets
Unit: Yuan
Non-patent
Items Land use right Patent Software Total
technologies
1. Total original
value
1.Beginning
296,245,314.76 409,458.15 296,654,772.91
balance
2.Increase in
current period
(1) Purchase 30,783,483.08 30,783,483.08
(2) Internal
R&D
(3) Merging
3.Decrease in
current period
(1) Disposal
4.Ending
327,028,797.84 409,458.15 327,438,255.99
balance
2. Accumulative
amortizing
1.Beginning
42,688,601.63 81,289.80 42,769,891.43
balance
2.Increase in
3,219,446.92 20,008.17 3,239,455.09
current period
(1) Provision 3,219,446.92 20,008.17 3,239,455.09
129
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
3.Decrease in
current period
(1) Disposal
4.Ending
45,908,048.55 101,297.97 46,009,346.52
balance
3. Total
impairment
1.Beginning
balance
2.Increase in
current period
(1) Provision
3.Decrease in
current period
(1) Disposal
4.Ending
balance
4. Total net book
value of Fixed
assets
1.Ending book
281,120,749.29 308,160.19 281,428,909.48
value
2.Beginning
253,556,713.13 328,168.35 253,884,881.48
book value
There isn’t any intangible asset constituted by internal R&D in the period.
(2) Property certificate not granted yet
Unit: Yuan
Items Total net book value of Fixed assets Reason
Notes:
26. Development expenditure
Unit: Yuan
130
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Beginning Ending
Items Increase in current period Decrease in current period
balance balance
Notes
27. Goodwill
(1) Original book value
Unit: Yuan
Beginning
Items Increase Decrease Ending balance
balance
(2) Provision for impairment
Unit: Yuan
Beginning
Items Increase Decrease Ending balance
balance
Notes to process of impairment test and parameter and method of recognition of impairment loss:
Notes
28. Long-term deferred expenses
Unit: Yuan
Increase in current Amortized amount
Items Beginning balance Other decrease Ending balance
period in current period
Notes
29. Deferred tax assets/Deferred tax liabilities
(1) Un-deducted deferred tax asset
Unit: Yuan
Ending balance Beginning balance
Items Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Asset impairment
373,970,223.70 93,492,555.93 403,885,112.30 100,971,278.09
provision
Internal trade profit not
71,807,414.00 17,951,853.50 64,609,874.03 16,152,468.51
realized
Differences of
333,978,859.03 83,494,714.76 333,978,859.03 83,494,714.76
depreciation and
131
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
amortization
Total 779,756,496.73 194,939,124.19 802,473,845.36 200,618,461.36
(2) Deferred income tax liabilities not deducted
Unit: Yuan
Ending balance Beginning balance
Items Taxable provisional Taxable provisional
Deferred tax liabilities Deferred tax liabilities
difference difference
(3) Deferred income tax asset or liability at net amount after deduction
Unit: Yuan
Amount neutralized Closing balance of Amount neutralized Opening balance of
between deferred income deferred income tax asset between deferred income deferred income tax asset
Items
tax asset and liability at or liability after tax asset and liabilities at or liability after
end of period deduction opening of period deduction
Deferred tax assets 194,939,124.19 200,618,461.36
(4) Unrecognized deferred tax assets
Unit: Yuan
Items Ending balance Beginning balance
Deductible temporary differences 2,722,439.35 2,967,495.10
Deductible losses 1,377,226,268.38 2,105,332,277.56
Total 1,379,948,707.73 2,108,299,772.66
(5) The deductible loss of unrecognized deferred tax assets due in the following period
Unit: Yuan
Year At end of the period At beginning of the period Nature
2018 4,904,050.21
2019
2020 1,365,805,145.49 2,086,284,665.11
2021 12,562,922.76 12,562,922.76
2022 1,580,639.48 1,580,639.48
2023
Total 1,379,948,707.73 2,105,332,277.56 --
Notes:
132
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
30. Other non-current assets
Unit: Yuan
Items Ending balance Beginning balance
Prepaid long-term assets 1,037,735,849.00 1,067,334,823.12
Items 1,037,735,849.00 1,067,334,823.12
Notes: Prepaid long-term assets at the end of the period of an amount of RMB 1,037,735,849.00 was used to pay the investment of
Northeast Special Steel Group Co., Ltd.
31. Short-term loans
(1) Short-term loans disclosed by category
Unit: Yuan
Items Ending balance Beginning balance
Pledge loans 825,000,000.00 1,470,000,000.00
Guaranteed loans 15,413,162,700.00 11,529,063,300.00
Credit loans 5,546,640,000.00 9,000,040,600.00
Total 21,784,802,700.00 21,999,103,900.00
Notes:
(2) Outstanding overdue short-term loans
Outstanding overdue short-term loans at the end of period is RMB 0.00, significant outstanding overdue short-term loans are as
following:
Unit: Yuan
Unit Ending balance Interest rate Overdue time Overdue interest rate
Notes:
32. Financial liabilities at fair value through profit or loss
Unit: Yuan
Items Ending balance Beginning balance
Notes:
33. Advance from customers
□ Applicable √ Not applicable
133
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
34. Notes payable
Unit: Yuan
Categories Ending balance Beginning balance
Bank acceptance bill 6,686,291,966.46 9,682,045,779.95
Commercial acceptance bill 1,798,307,730.12 1,812,544,047.32
Total 8,484,599,696.58 11,494,589,827.27
Notes payable mature as of end of period was RMB0.00.
35. Accounts payable
(1) Accounts payable disclosed by category
Unit: Yuan
Items Ending balance Beginning balance
Accounts payable for goods 3,390,784,690.68 3,116,873,305.58
Accounts payable for labor 4,563,306.49 4,467,697.76
Accounts payable for project and
260,141,728.27 254,691,333.73
equipment
Accounts payable for repair 592,745,474.27 519,035,208.21
Others 2,637,902.24 2,600,968.49
Total 4,250,873,101.95 3,897,668,513.77
(2) Material payable aged over 1 year
Unit: Yuan
Items Ending balance Reason
BHP Billiton Trading Company 29,311,486.15 Not yet settled
China Metallurgical Southern Engineering
17,030,034.24 Not yet settled
Technology Co., Ltd.
Jixi Huasheng Feng Yuan Coal Preparation
26,485,138.18 Not yet settled
Co., Ltd.
Hangzhou Tian Shen materials Co., Ltd.. 20,145,902.64 Not yet settled
Total 92,972,561.21 --
Notes:
134
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
36. Advance from customers
(1) Advance from customers disclosed by category
Unit: Yuan
Items Ending balance Beginning balance
Advance for goods 3,389,201,256.80 3,308,567,598.05
Total 3,389,201,256.80 3,308,567,598.05
(2) Material advances received for over 1 year
Unit: Yuan
Items Ending balance Reason
(3) Unfinished project has already paid at the end of period
Unit: Yuan
Items Amount
Notes:
37. Employee benefits payable
(1) Employee benefits payable
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance
1. Short-term
39,492,800.76 943,263,601.67 943,135,390.76 39,621,011.67
employee benefits
2. Post-employment
benefits - defined 58,897.24 47,540,582.84 47,540,326.12 59,153.96
contribution plans
3. Termination benefits 4,170,839.58 1,144,626.18 3,026,213.40
Total 43,722,537.58 990,804,184.51 991,820,343.06 42,706,379.03
(2) Short-term employee benefits
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance
1. Salary, bonus,
29,509,509.38 641,081,645.94 641,141,079.43 29,450,075.89
allowance and
135
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
subsidy
2. Employee welfare 403,019.22 45,026,921.33 45,026,921.33 403,019.22
3.Social security expense 663,146.90 192,937,976.71 192,926,811.12 674,312.49
Including: Medical
44,401,255.18 44,401,255.18
insurance
Work injury
663,146.90 16,468,829.44 16,468,829.44 663,146.90
insurance
Maternity
11,511.84 11,511.84
insurance
4. Housing fund 6,850,655.00 50,579,409.00 50,575,375.00 6,854,689.00
5. Union funds and
2,066,470.26 12,732,865.04 12,560,420.23 2,238,915.07
staff education fee
6. Others 904,783.65 904,783.65
Total 39,492,800.76 943,263,601.67 943,135,390.76 39,621,011.67
(3) Defined contribution plans
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance
1. Basic pension fund 57,445.11 44,401,255.18 44,401,255.18 57,445.11
2. Unemployment
1,452.13 3,139,327.66 3,139,070.94 1,708.85
insurance
Total 58,897.24 47,540,582.84 47,540,326.12 59,153.96
Notes:
38. Current tax liabilities
Unit: Yuan
Items Ending balance Beginning balance
Value-added Tax (VAT) 37,172,905.08 44,433,347.78
Enterprise income tax 4,233,500.49 12,706,288.46
City maintenance and construction tax 10,340,536.48 13,007,637.50
Housing property tax 3,013,016.57 2,990,847.04
Educational surcharges 7,400,127.44 9,382,026.01
Others 9,925,077.37 5,286,981.71
Total 72,085,163.43 87,807,128.50
Notes:
136
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
39. Interests payable
Unit: Yuan
Items Ending balance Beginning balance
Corporate bond interest 70,109,821.13
Short-term loan interest payable 51,920,388.97 14,029,466.89
Total 51,920,388.97 84,139,288.02
Notes:
Unit: Yuan
Unit Overdue amount Reason
Notes:
40. Dividends payable
Unit: Yuan
Items Ending balance Beginning balance
Common stock dividends 193,768,576.60
Total 193,768,576.60
Notes, the reason of significant dividends payable aging over 1 year:
41. Other payables
(1) Other payables disclosed by nature
Unit: Yuan
Items Ending balance Beginning balance
Deposit 2,429,895.77 2,475,771.82
Margin 163,854,042.94 145,686,888.01
Accounts 323,615,754.77 349,363,687.04
Others 71,096,069.89 79,463,585.44
Total 560,995,763.37 576,989,932.31
(2) Significant other payables ageing over one year
Unit: Yuan
Items Ending balance Reason
Benxi Steel & Iron (Group) Co., Ltd. 86,805,543.86 Not yet settled
Total 86,805,543.86 --
137
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Notes
42. Liabilities held for sale
Unit: Yuan
Items Ending balance Beginning balance
Notes:
43. Non-current liabilities due within one year
Unit: Yuan
Items Ending balance Beginning balance
Long-term loans due within one year 1,040,765,614.98 2,311,995,410.89
Long-term payables due within one year 1,499,545,179.95
Total 1,040,765,614.98 3,811,540,590.84
Notes:
44. Other current liabilities
Unit: Yuan
项目 期末余额 期初余额
Pending VAT 25,283,327.37 27,979,093.21
Total 25,283,327.37 27,979,093.21
Changes in short-term bonds payable:
Unit: Yuan
Amortizat
Interest Repayme
Issuance ion of the
Bond Date of Bond Issue Beginnin calculated nt in Ending
Par value in current Premiums
name issue maturity value g balance by par current balance
period and
value period
Discounts
Notes:
45. Long-term loans
(1) Long-term loans disclosed by category
Unit: Yuan
Items Ending balance Beginning balance
Guaranteed loans 3,186,004,295.10 2,267,263,140.28
Credit loans 1,220,995,278.78 176,922,490.00
138
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Total 4,406,999,573.88 2,444,185,630.28
Long-term loans disclosed by category:
Notes，including interest rate interval:
46. Bonds payable
(1) Bonds payable
Unit: Yuan
Items Ending balance Beginning balance
(2) Changes in bonds payable (exclude other financial instruments such as preference shares or perpetual
liabilities)
Unit: Yuan
(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
Unit: Yuan
Financial At beginning of the period Increase Decrease At end of the period
instruments
issued Quantity Book value Quantity Book value Quantity Book value Quantity Book value
externally
Statements on basis of categorizing of other financial instruments as financial liabilities
Notes
47. Long-term payables
(1) Long-term payables disclosed by nature
Unit: Yuan
Items Ending balance Beginning balance
Notes:
139
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
48. Long-term employee benefits payable
(1) Long-term employee benefits payable
Unit: Yuan
Items Ending balance Beginning balance
(2) Changes of defined benefit plan
Defined benefit plan obligation present value:
Unit: Yuan
Items January to June 2018 January to June 2017
Planned assets:
Unit: Yuan
Items January to June 2018 January to June 2017
Defined benefit plan 净 liabilities(Net assets)
Unit: Yuan
Items January to June 2018 January to June 2017
Content of defined benefit plan and the related risks, and the related influences to the Company’s future cash flow, time and
uncertainty:
Results of significant actuarial assumption and sensitivity analysis of defined benefit plan:
Notes:
49. Special accounts payable
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance Reason
Notes:
50. Estimated liabilities
Unit: Yuan
Items Ending balance Beginning balance Reason
Notes, including significant assumption and estimate of estimated liabilities:
51. Deferred income
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance Reason
Government 372,785,000.00 694,300.00 41,274,238.70 332,205,061.30
140
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Subsidies
Total 372,785,000.00 694,300.00 41,274,238.70 332,205,061.30 --
Projects of government subsidies:
Unit: Yuan
Transfer to Write off on
Beginning Transfer to Other Ending Related to assets
Items Increase non-operatin costs and
balance other income changes balance or income
g income expenses
MES PROJECT 2,580,000.0
3,440,000.00 860,000.00 Related to assets
SPECIAL FUND 0
Industrial
Enterprise Energy
Management
1,160,000.0 8,120,000.0
Center 9,280,000.00 Related to assets
0 0
Construction
Demonstration
Project
Environment
Pollution 1,810,000.0 5,430,000.0
7,240,000.00 Related to assets
Renovation 0 0
Project
Environment
Renovation
Project and
680,000.00 170,000.00 510,000.00 Related to assets
Regional Basin
Environment
Protection Project
High Strength
Cold Rolling 250,000,000. 25,000,000. 225,000,000
Related to assets
Steel Renovation 00 00 .00
Project
Automobile
High-class
Electrolytic Zinc 24,624,000.0 4,104,000.0 20,520,000.
Related to assets
Steel Plate 0 0 00
Production Line
Project
Sintering
Machine Residue
2,102,000.0 6,306,000.0
Heat Usage and 8,408,000.00 Related to assets
0 0
Desulfurization
Project
141
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
7 130t Boilers
Flue Gas
Desulfurization 24,000,000.0 2,400,000.0 21,600,000.
Related to assets
Renovation 0 0 00
Project of Power
Plant
Treatment and
Salt Extraction
Project of
100,000.00 50,000.00 50,000.00 Related to assets
Desulfurization
Waste Liquid of
Coke Plant
Overseas
Advanced
1,442,000.0 8,326,000.0
Technology 9,768,000.00 Related to assets
0 0
Introduction
Special Fund
Automobile Steel
Sheet
1,000,000.0
Engineering 1,000,000.00 Related to assets
0
Laboratory
Project
Third-generation
High Strength
2,900,000.0
Steels for 2,900,000.00 Related to assets
0
Automobile R&D
Project
The 360 Cubic
Meter Sintering
Machine Flue
Gas
400,000.00 100,000.00 300,000.00 Related to assets
Desulfurization
Renovation
Project of Blast
Furnace Plant
Environment
1,740,000.0
Protection Project 2,320,000.00 580,000.00 Related to assets
0
Special Fund
Advance
Treatment of 9,500,000.0
9,500,000.00 Related to assets
Carbon Fiber 0
Waste Water
142
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Project of Plates
Coke Plant
Dongfeng
Workshop
Coal-fired Boiler
Desulfuration and
Denitration
Project of 5,100,000.0
5,400,000.00 300,000.00 Related to assets
Bengang Power 0
Plant High
Pressure
Workshop
Cogeneration
Transformation
10,000,000.0 10,000,000.
Project of Power Related to assets
0 00
Plant the Third
Workshop
Sintering
Machine Energy
Conservation and
2,900,000.0
Environment 3,480,000.00 580,000.00 Related to assets
0
Protection Project
of Iron Making
Plant
Air Quality
Automatic
245,000.00 35,000.00 210,000.00 Related to assets
Monitoring
System
Compensation
from Xihu
Resource 414,300.00 414,300.00 Income
Management
Committee
Liaoning
craftsman subsidy
and skill master 280,000.00 166,938.70 113,061.30 Income
workstation
subsidy
372,785,000. 41,274,238. 332,205,061
Total 694,300.00 --
00 70 .30
Notes:
143
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
52. Other non-current liabilities
Unit: Yuan
Items Ending balance Beginning balance
Notes:
53. Share capital
Unit: Yuan
Changes (+, -)
Beginning Capitalization
Issuing of new Ending balance
balance Bonus shares of common Others Subtotal
share
reserve fund
Total of capital 3,136,000,000. 3,875,371,532.
739,371,532.00 739,371,532.00
shares 00 00
Notes:
54. Other equity instruments
(1) Particulars about other financial instruments issued externally such as preference shares or perpetual
bonds.
(2) Change of financial instruments issued externally such as preference shares or perpetual bonds
Unit: Yuan
Financial At beginning of the period Increase Decrease At end of the period
instruments
issued Quantity Book value Quantity Book value Quantity Book value Quantity Book value
externally
Changes of other equity instruments during the current period, reason and the basis of accounting treatment
Notes:
55. Capital reserves
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance
Capital premium over par
8,998,928,073.23 3,228,364,305.24 12,227,292,378.47
value
Other capital reserves 115,917,468.82 115,917,468.82
Total 9,114,845,542.05 3,228,364,305.24 12,343,209,847.29
Notes:
144
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
56. Treasury stock
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance
Notes:
57. Other comprehensive income
Unit: Yuan
2017
Less: Amount
transferred
into profit and
loss in the
Amount current period After-tax After-tax
Beginning Less: Ending
Items incurred current period attribute to attribute to
balance Income tax balance
before that the parent minority
expenses
income tax recognized company shareholder
into other
comprehensive
income in
prior period
Notes，including the adjustment to origin amount of effective portion of gains or losses from cash flow hedging reserve to arbitraged
items:
58. Special reserves
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance
Safety production cost 475,046.75 22,983,003.78 7,492,925.61 15,965,124.92
Total 475,046.75 22,983,003.78 7,492,925.61 15,965,124.92
Notes:
59. Surplus reserves
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance
Statutory surplus
961,105,529.85 961,105,529.85
reserves
Total 961,105,529.85 961,105,529.85
Notes:
145
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
60. Undistributed profits
Unit: Yuan
Items 30 June 2018 30 June 2017
Before adjustments: undistributed profits at last
1,103,162,610.35 -496,969,242.61
year-end
Beginning balance of retained profits after
1,103,162,610.35 -496,969,242.61
adjustments
Add: undistributed profit belonging to parent
756,951,987.59 523,635,653.57
company
Payable common stock dividend 193,768,576.60
Ending balance of undistributed profits 1,666,346,021.34 26,666,410.96
List of adjustment of opening retained profits:
1) Influence to beginning undistributed profits was RMB 0.00 caused by retroactive adjustment due to “Accounting Standard for
Business Enterprises” and related new regulations.
2) Influence to beginning undistributed profits was RMB 0.00 due to changes in accounting policies.
3) Influence to begging undistributed profits was RMB 0.00 due to corrections of major accounting mistake.
4) Influence to begging undistributed profits was RMB 0.00 due to the changes of consolidation scope caused by common control.
5) Influence to begging undistributed profits was RMB 0.00 due to other adjustments.
61. Operating income and operating cost
Unit: Yuan
January to June 2018 January to June 2017
Items
Revenue Cost Revenue Cost
Principal business 21,302,037,073.89 19,140,922,165.53 19,476,278,905.41 17,638,682,335.86
Other business 2,139,210,303.25 1,663,285,255.45 1,260,207,998.33 1,051,983,630.25
Total 23,441,247,377.14 20,804,207,420.98 20,736,486,903.74 18,690,665,966.11
62. Taxes and Surcharges
Unit: Yuan
Items January to June 2018 January to June 2017
City maintenance and construction tax 48,666,138.65 46,713,364.91
Educational surcharges 34,952,935.92 33,504,830.35
Housing property tax 36,610,915.20 37,046,142.33
Land use right 6,486,432.24 3,155,810.05
146
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Others 12,694,429.33 13,336,583.43
Environmental Tax 13,896,524.30
Total 153,307,375.64 133,756,731.07
Notes:
63. Selling and distribution expenses
Unit: Yuan
Items January to June 2018 January to June 2017
Freight 393,290,897.61 428,678,322.48
Port surcharges 56,907,191.59 86,681,806.22
Agency fee 35,649,297.75 38,969,368.55
Salary and benefits 11,993,852.41 10,794,773.70
Others 12,721,174.90 19,399,396.68
Package fee 3,475,594.69 3,109,039.80
Total 514,038,008.95 587,632,707.43
Notes:
64. General and administrative expenses
Unit: Yuan
Items January to June 2018 January to June 2017
Salary and benefits 116,352,823.92 94,209,841.05
Accounts payable for repair 174,107,156.65 80,215,426.18
Pollution discharge fee 25,709,122.00
Land use right fee 27,345,714.30 27,345,714.30
Others 59,604,807.84 56,552,255.19
Depreciation 26,164,322.31 25,945,531.46
Social security expense 23,452,571.91 21,716,785.13
Heating fee 20,783,413.87 11,677,556.25
Water resources fee 6,546,763.90 5,596,700.00
Housing fund 4,445,529.00 4,614,199.60
Amortization of intangible assets 2,982,926.09 2,982,306.37
Entertainment expense 1,527,871.52 1,535,128.96
147
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Lease expense 543,240.66 572,987.24
Freight 455,924.12 277,851.35
Total 464,313,066.09 358,951,405.08
Notes:
65. Financial expenses
Unit: Yuan
Items January to June 2018 January to June 2017
Interest cost 575,001,615.20 434,308,806.10
Less: Interest income 61,605,403.34 36,772,069.07
Exchange loss 286,291,324.68 -23,234,309.69
Others 3,350,880.74 7,210,977.46
Total 803,038,417.28 381,513,404.80
Notes:
Financial expenses of the current period were RMB 0.8 billion, increased RMB 0.422 billion compared to the previous period which
was RMB 0.381 billion, at the rate of 110.49%. The reason of the increase is because of the increase of exchange loss.
66, Asset impairment loss
Unit: Yuan
Items January to June 2018 January to June 2017
Loss for bad debts -14,523,332.71 -6,653,848.89
Impairment of inventories -6,394,630.93 -36,736,605.65
Total -20,917,963.64 -43,390,454.54
Notes:
67. Variable profit and loss of fair value
Unit: Yuan
Sources January to June 2018 January to June 2017
Notes:
68. Income on investment
Unit: Yuan
Items January to June 2018 January to June 2017
Income from bank short-term financial 3,493,150.68 3,294,593.14
148
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
products
Total 3,493,150.68 3,294,593.14
Notes:
69. Gains on disposal of assets
Sources January to June 2018 January to June 2017
Disposal gains or losses of fixed assets not
825,580.63 3,015,294.00
held for sale
Total 825,580.63 3,015,294.00
70. Other Income
Unit: Yuan
Sources January to June 2018 January to June 2017
MES PROJECT SPECIAL FUND 860,000.00 860,000.00
Second Batch of National Cleaned
Manufacturing Demonstration Project 400,000.00
Fund
Industrial Enterprise Energy Management
1,160,000.00
Center Construction Demonstration Project
Environment Pollution Renovation Project 1,810,000.00 2,617,000.00
Environment Renovation Project and
Regional Basin Environment Protection 170,000.00 250,000.00
Project
Energy-saving Technological Reform
1,477,000.00
Fiscal Reward Project
High Strength Cold Rolling Steel
25,000,000.00
Renovation Project
Automobile High-class Electrolytic Zinc
4,104,000.00 4,104,000.00
Steel Plate Production Line Project
Sintering Machine Residue Heat Usage
2,102,000.00 2,102,000.00
and Desulfurization Project
Wastewater Treatment Plant Renovation
750,000.00
Project
7 130t Boilers Flue Gas Desulfurization
2,400,000.00
Renovation Project of Power Plant
Treatment and Salt Extraction Project of
50,000.00 50,000.00
Desulfurization Waste Liquid of Coke
149
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Plant
Overseas Advanced Technology
1,442,000.00 442,000.00
Introduction Special Fund
The 360 Cubic Meter Sintering Machine
Flue Gas Desulfurization Renovation 100,000.00 100,000.00
Project of Blast Furnace Plant
Environment Protection Project Special
580,000.00 580,000.00
Fund
Desulphurization and Denitrification of
Coal-Fired Boilers in High Pressure 300,000.00
Workshop of Power Plant
Energy Saving and Environmental
580,000.00 580,000.00
Protection of Sintering Plant in Ironworks
Air quality automatic monitoring system 35,000.00 35,000.00
Compensation from Xihu Resource
414,300.00 700,000.00
Management Committee
Liaoning craftsman subsidy and skill
166,938.70
master workstation subsidy
Total 41,274,238.70 15,047,000.00
71. Non-operating income
Unit: Yuan
The amount recognized in
Items January to June 2018 January to June 2017
non-recurring profit and loss
Debt restructuring gain 945,892.23 822,116.45 945,892.23
Others 1,192,505.57 2,130,078.13 1,192,505.57
Total 2,138,397.80 2,952,194.58 2,138,397.80
Details of government subsidies recorded into current profits and loss:
Unit: Yuan
Whether
Whether
influence the Amount of Related to
Distribution Distribution Special Current
Items Nature type profits or the previous assets or
entity reason subsidy or amount
losses of the period income
not
year or not
Notes:
72. Non-operating expenses
Unit: Yuan
The amount recognized in
Items January to June 2018 January to June 2017
non-recurring profit and loss
150
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Fixed assets disposal loss 1,382,402.26 4,593,420.30 1,382,402.26
Total 1,382,402.26 4,593,420.30 1,382,402.26
Notes:
73. Income tax expense
(1) Income tax expense
Unit: Yuan
Items January to June 2018 January to June 2017
Income tax payable for the current year 5,956,888.87 16,796,524.06
Deferred income tax expense 5,679,337.17 100,308,537.10
Total 11,636,226.04 117,105,061.16
(2) Accounting profit and income tax expense adjustment process
Unit: Yuan
Items January to June 2018
Total profit 769,610,017.39
Income tax expense calculate according to the official or
192,402,504.35
applicable tax rate
Effect of use of deductible losses of unrecognized deferred tax
180,766,278.31
asset of prior period
Income tax expense 11,636,226.04
Notes
74. Other comprehensive income
Please refer to notes.
75. Notes of statement of cash flows
(1) Cash received related to other operating activities
Unit: Yuan
Items January to June 2018 January to June 2017
Withdraw of current accounts, advance for
19,218,434.76 49,988,918.77
another
Interest income 61,605,403.34 36,772,069.07
Special subsidy income 694,300.00 700,000.00
151
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Non-operating income 162,619.82 350,490.77
Others 101,722.27 5,600.00
Total 81,782,480.19 87,817,078.61
Notes:
(2) Cash paid related to other operating activities
Unit: Yuan
Items January to June 2018 January to June 2017
Current accounts, advance for another 285,018,187.10 317,981,786.61
General and administrative expenses 4,646,000.62 4,534,010.56
Selling and distribution expenses 18,078,644.22 18,370,234.96
Bank charges 2,896,060.69 7,210,977.46
Others 358,254.79 287,293.34
Total 310,997,147.42 348,384,302.93
Notes:
(3) Other cash received relevant to investment activity
Unit: Yuan
Items January to June 2018 January to June 2017
Notes:
(4) Other cash paid relevant to investment activity
Unit: Yuan
Items January to June 2018 January to June 2017
Notes:
(5) Cash received related to other financing activities
Unit: Yuan
Items January to June 2018 January to June 2017
Notes:
(6) Cash paid related to other financing activities
Unit: Yuan
Items January to June 2018 January to June 2017
152
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Notes:
76. Supplementary details of statement of cash flows
(1) Supplementary details of statement of cash flows
Unit: Yuan
Supplementary information Amount in this period Amount in last year
1． A reconciliation of net profit to cash
-- --
flows from operating activities:
Net Profit 757,973,791.35 529,967,744.05
Add: Asset impairment losses -20,917,963.64 -43,390,454.54
Depreciation of fixed assets, of oil-gas
1,144,984,195.00 935,125,024.26
assets, of productive biological assets
Amortization of intangible assets 3,239,455.09 2,982,306.37
Losses proceeds from disposal of PPE,
intangible assets and other long-term 556,821.63 1,578,126.30
assets(Earnings marked“－”)
Financial expenses(Earnings marked“－”) 803,038,417.28 381,513,404.80
Investment loss(Earnings marked“－”) -3,493,150.68 -3,294,593.14
Deferred tax assets reduction(Addition
5,679,337.17 100,308,537.11
marked“－”)
Inventories reduction(Addition marked“－”) -1,683,906,453.31 -52,529,908.92
Operating receivable items
817,004,548.19 40,403,360.62
reduction(Addition marked“－”)
Operating payable items increase (Less
-1,093,639,256.61 -5,939,969,231.63
marked"－")
Net cash flows generated from operating
730,519,741.47 -4,047,305,684.72
activities
2．Payments of investing and financing
-- --
activities not involving cash:
3．The net increase in cash and cash
-- --
equivalents:
Ending balance of the monetary funds 16,038,506,854.22 11,484,974,631.49
Less: Beginning balance of the monetary
17,037,713,410.49 12,273,574,488.67
funds
The net increase in cash and cash equivalents -999,206,556.27 -788,599,857.18
153
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(2) Net Cash paid of obtaining the subsidiary
Unit: Yuan
Amount
Including: --
Including: --
Including: --
Notes:
(3) Net Cash receive of disposal of the subsidiary
Unit: Yuan
Amount
Including: --
Including: --
Including: --
Notes:
(4) The structure of cash and cash equivalents
Unit: Yuan
Items Ending balance Beginning balance
1. Cash 16,038,506,854.22 17,037,713,410.49
Including: Cash on hand 20,372.11 20,871.51
Bank deposits available on demand 16,038,486,482.11 17,037,692,538.98
Other monetary funds available on
demand
2. The final cash and balance of cash
16,038,506,854.22 17,037,713,410.49
equivalents
Notes:
77. Notes to changes in equity
Notes to the other adjustment to closing balance of the previous period and the adjustment amount:
78. The assets with the ownership or use right restricted
Unit: Yuan
Items Ending book value Reason
154
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Cash at bank and on hand 2,531,734,752.99 Deposit for notes and L/C
Notes receivable 1,801,103,300.17 Pledged for acceptance bill or bank loan
Total 4,332,838,053.16 --
Notes:
79. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: Yuan
Ending balance in foreign Ending balance translated to
Items Exchange rate at the year-end
currency RMB
Including: USD -- -- 3,521,674,538.56
EUR 433,576,750.11 6.6166 2,868,803,924.78
HKD 85,214,634.28 7.6515 652,019,774.19
Short-term loans 1,009,179.92 0.8431 850,839.59
Including: USD 6,369,393,300.00
Non-current liabilities due within
865,500,000.00 6.6166 5,726,667,300.00
one year
Including: USD 84,000,000.00 7.6515 642,726,000.00
JPY 1,005,866,915.68
Including: USD 148,000,000.00 6.6166 979,256,800.00
EUR 3,296,330.56 7.6515 25,221,873.28
Japanese Yen 23,176,000.00 0.0599 1,388,242.40
Long-term Loans -- -- 1,498,631,297.21
Including: USD 128,300,000.00 6.6166 848,909,780.00
EUR 83,372,078.26 7.6515 637,921,456.81
JPY 196,996,000.00 0.0599 11,800,060.40
Notes:
(2) Note to overseas 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
80. Hedging
Hedging items disclosed by category and related hedging instruments and the qualitative and quantitative information of risks:
155
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
None
81. Others
None
VIII. Equity in other entities
1. Equity in subsidiaries
(1) Constitution of enterprise group
Name of the Principal place of Registered Nature of Proportion of shares held (%) Acquiring
subsidiaries business address business Direct Indirect method
Notes:
Basis of determine the Company control the investee while holding half or less voting rights and basis of determine the Company
does not control while holding more than half voting rights:
None
Basis of control to structured entity included in the consolidation scope:
None
Basis of determine whether the Company is the agent or the principal:
None
(2) Significant not wholly-owned subsidiaries
Unit: Yuan
Profits and losses Dividend declared to
Proportion of attributing to distribute to Ending balance of
Name of the subsidiaries
non-controlling interests non-controlling non-controlling non-controlling interests
shareholders shareholders
Bengang Puxiang Cool
Rolling Steel Sheet Co., 25.00% 1,377,927.80 499,584,045.29
Ltd.
Dalian Benruitong
Automobile Material 35.00% -312,957.88 26,375,164.18
Technologies Co., Ltd.
Holding proportion of minority shareholder in subsidiary different from voting proportion:
None
Notes:
None
156
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(3) The main financial information of significant not wholly owned subsidiary
Unit: Yuan
Name of Ending balance Beginning balance
the Non-curr Current Non-curr Non-curr Current Non-curr
Current Total Total Current Total Total
subsidiar ent Liabilitie ent ent Liabilitie ent
assets assets liabilities assets assets liabilities
ies assets s liabilities assets s liabilities
Bengang
Puxiang
Cool
3,280,87 1,849,47 5,130,35 3,132,01 3,132,01 2,386,61 2,003,97 4,390,59 2,399,42 2,399,42
Rolling
9,837.58 6,058.98 5,896.56 9,715.41 9,715.41 8,039.83 2,503.03 0,542.86 6,402.00 6,402.00
Steel
Sheet
Co., Ltd.
Dalian
Benruito
ng
Automo
130,501, 150,077, 280,578, 205,221, 205,221, 169,295, 153,808, 323,103, 246,851, 246,851,
bile
245.20 740.12 985.32 373.39 373.39 050.97 054.26 105.23 327.92 327.92
Material
Technolo
gies Co.,
Ltd.
Unit: Yuan
January to June 2018 January to June 2017
Net cash Net cash
Name of the Total Total
flows from flows from
subsidiaries Turnover Net Profit comprehensi Turnover Net Profit comprehensi
operating operating
ve income ve income
activities activities
Bengang
Puxiang Cool
3,971,529,84 686,401,003. 3,953,643,06 28,005,452.6 28,005,452.6 -44,864,088.8
Rolling Steel 5,511,711.19 5,511,711.19
7.27 83 9.30 8 8 1
Sheet Co.,
Ltd.
Dalian
Benruitong
Automobile 99,283,350.5 12,596,859.6 84,612,504.0 16,421,759.6
-894,165.38 -894,165.38 -1,936,593.41 -1,936,593.41
Material 7 1 6 5
Technologies
Co., Ltd.
Notes:
157
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
None
(4) Significant restrictions of using enterprise group assets and pay back enterprise group debt
(5) Provide financial support or other support for structured entities incorporate into the scope of
consolidated financial statements
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
Unit: Yuan
Notes
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Proportion of shares held (%) Accounting
treatment of the
Principal place of Registered Nature of investment of
Name
business address business Direct Indirect joint venture or
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:
None
(2) Main financial information of significant joint venture
Unit: Yuan
Ending balance/January to June 2018 Beginning balance/January to June 2017
Notes
158
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(3) Major financial information of significant joint venture
Unit: Yuan
Ending balance/current period Beginning balance/previous period
Notes
(4) Main financial information of significant associated enterprise
Unit: Yuan
Ending balance/current period Beginning balance/previous 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
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
Unit: Yuan
The cumulative recognized The derecognized losses or the The noncumulative
Name losses in previous share of net profit in reporting unrecognized losses in reporting
accumulatively derecognized period period
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
Principal place of Proportion /share portion
Name Registered address Nature of business
business Direct Indirect
Notes to holding proportion or share portion in common operation different from voting proportion:
Basis of common operation as a single entity, classify as common operation:
Notes
159
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
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. Others
IX. Risks associated with 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
Company’s exposure to currency risk is primarily arising from variable-rate bank balances and variable-rate
borrowings. Currently, the Company does not have a specific policy to manage its interest rate risk. The
management will carefully choose financing methods, and combine fixed interest rate with variable interest
rate, short-term obligations with long-term obligations. By using effective interest rate risk management
methods, the Company closely monitors interest rate risk and will consider interest-rate swaps to acquire an
expected structure of interest rates shall the need arise.
Although these measures may not ensure 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
160
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
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.
The currency risk facing the Company originates from the assets and liabilities measured by US dollars, Euro,
Hong Kong dollars and Japanese Yen. The ending balance of the assets and liabilities after converted in RMB
is shown as below:
Unit: RMB 10,000
Ending balance
Items
USD Euro HKD Japanese Yen Total
Assets 286,880.39 65,201.98 85.08 352,167.45
Liabilities 755,483.39 130,586.93 63,930.97 950,001.29
Total 1,042,363.78 195,788.91 85.08 63,930.97 1,302,168.74
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.
Unit: RMB 10,000
Ending balance
Items Impact on Impact on
Impact on USD Impact on Euro Total
HKD Japanese Yen
Appreciation by 5% -23,430.15 -3,269.25 4.25 -3,196.55 -29,891.69
Depreciation by 5% 23,430.15 3,269.25 -4.25 3,196.55 29,891.69
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 Company’s policy is to maintain sufficient cash to
meet maturing obligations. Liquidity risk is centralized controlled by the Company’s 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 Company’s mature date of residual contract value of un-derivative financial
liabilities to repay according to the contract terms. The table has been drawn up based on the undiscounted
161
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
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.
Unit: RMB 10,000
Ending balance
Items
Within 1 year 1-2 years 2-5 years Over 5 years Total
Trade and other payables 1,365,435.62 54.28 124.74 80.27 1,365,694.91
Loans and interests 2,282,695.66 5,956.80 219,975.88 214,628.45 2,723,256.79
Non-current liabilities due
within one year
Total 3,648,131.27 6,011.08 220,100.62 214,708.72 4,088,951.70
Unit: RMB 10,000
Beginning balance
Items
Within 1 year 1-2 years 2-5 years Over 5 years Total
Trade and other payables 1,618,161.06 73.68 159.73 97.25 1,618,491.72
Loans and interests 2,470,640.43 31,954.06 81,123.04 165,472.33 2,749,189.86
Non-current liabilities due
within one year 149,954.52 149,954.52
Total 4,238,756.01 32,027.74 81,282.77 165,569.58 4,517,636.10
X. Related party and related party transactions
1. Details of parent company
(In 100 Million Yuan)
Name of parent
Registered address Nature of business Registered capital Share proportion Voting rights
company
Benxi Steel & Iron
Benxi Manufacturing 62.92 59.91% 59.91%
(Group) Co., Ltd.
Note:
The parent company of Benxi Steel (Group) Co., Ltd. is Bengang Group Co., Ltd.
The ultimate controlling party of the Company is the State-owned Assets Supervision and Administration Commission of Liaoning
Province.
2. Details of the subsidiaries
For details of subsidiaries of the Company please refer to Note “Equity in other entities”.
3. Information on the joint ventures and associated enterprises of the Company
See details to Notes.
162
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
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:
Name Relationship
Notes
4. Details of other related parties
Name of Other related parties Relationship
Bengang Group International Economic and Trading Co., Ltd. Both belong to Bengang Group Co., Ltd.
Bengang Cold-rolled Stainless Steel Dandong Co., Ltd. Same parent company
Benxi Beiying Steel & Iron (Group) Co., Ltd. Both belong to Bengang Group Co., Ltd.
Bengang Electronics and Gas Co., Ltd. Both belong to Benxi Steel and Iron (Group) Co., Ltd.
Benxi Steel & Iron (Group) Real-estate Development Co., Ltd. Same parent company
Benxi Steel & Iron (Group) Steel & Iron Process and Logistics
Same parent company
Co., Ltd.
Benxi Steel & Iron (Group) Machinery Manufacture Co., Ltd. Same parent company
Benxi Steel & Iron (Group) Construction Co., Ltd. Same parent company
Benxi Steel & Iron (Group) Mining Co., Ltd. Same parent company
Benxi Steel & Iron (Group) Thermal Power Development Co.,
Same parent company
Ltd.
Benxi Steel & Iron (Group) Designing Institute Same parent company
Benxi Steel & Iron (Group) Industrial Development Co., Ltd. Same parent company
Benxi Steel & Iron (Group) Information and Automatic Tech Co.,
Same parent company
Ltd.
Benxi Steel & Iron (Group) Construction and Repairing Co., Ltd. Same parent company
Benxi Steel & Iron (Group) Metallurgy Residues Co., Ltd. Same parent company
Benxi Steel & Iron (Group) Plant Construction Supervisor Co.,
Same parent company
Ltd.
Benxi Steel & Iron (Group) Zhengtai Construction Materials Co.,
Same parent company
Ltd.
Benxi High-tech Drilling Tools Manufacture Co., Ltd. Both belong to Bengang Group Co., Ltd.
Benxi New Career Development Co., Ltd. Same parent company
Dalian Boluole Steel Tube Co., Ltd. Both belong to Benxi Steel and Iron (Group) Co., Ltd.
Guangzhou Free Trade Zone Bengang Sales Co., Ltd. Both belong to Benxi Steel and Iron (Group) Co., Ltd.
Liaoning Bengang Steel & Iron Trading Co., Ltd. Same parent company
Liaoning Hengtai Heavy Machinery Co., Ltd. Same parent company
163
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Liaoning Hengtong Metallurgical Equipment Manufacture Co.,
Same parent company
Ltd.
Liaoning Metallurgy Technician College Same parent company
Liaoning Metallurgy Technician College Same parent company
Suzhou Bengang Industrial Co., Ltd. Shareholding company
Benxi Steel & Iron(Group) Medical Department Both belong to Benxi Steel and Iron (Group) Co., Ltd.
Bengang Group Finance Co., Ltd. Both belong to Bengang Group Co., Ltd.
Liaoning Hengyi Financial Leasing Co., Ltd. Both belong to Bengang Group Co., Ltd.
Notes
5. Related Party Transactions
(1) Related party transactions of purchasing goods and services
Company as the purchaser
Unit: Yuan
The content of
January to June The approved trade Whether exceed trade
Name related party January to June 2017
2018 credit credit or not
transactions
Benxi Steel & Iron Accounts payable
197,670,478.35 350,000,000.00 No 127,818,662.00
(Group) Co., Ltd. for repair
Benxi Steel & Iron
Land leasing fee 27,345,714.30 27,345,714.30
(Group) Co., Ltd.
Bengang
Cold-rolled
Products 641,948.77 5,000,000.00 No 174,967.51
Stainless Steel
Dandong Co., Ltd.
Benxi Steel & Iron
(Group) Mining Labor cost 3,867,465.58 2,537,625.86
Co., Ltd.
Benxi Steel & Iron Raw material and
(Group) Mining supplementary 2,038,163,311.47 4,000,000,000.00 No 2,176,386,929.60
Co., Ltd. material
Benxi Steel & Iron
(Group) Mining Freight 31,783.77
Co., Ltd.
Benxi Steel & Iron Raw material and
(Group) Metallurgy supplementary 128,528,351.16 200,000,000.00 No 128,200,766.66
Residues Co., Ltd. material
164
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Benxi Steel & Iron
(Group) Steel &
Processing fee 876,655.68 5,000,000.00 No 761,185.36
Iron Process and
Logistics Co., Ltd.
Benxi Steel & Iron
(Group) Real-estate
Raw materials 36,279,876.56 100,000,000.00 No 50,067,484.09
Development Co.,
Ltd.
Benxi Steel & Iron
(Group) Machinery
Spare parts 46,002,921.49 250,000,000.00 No 55,223,576.67
Manufacture Co.,
Ltd.
Benxi Steel & Iron
(Group) Machinery
Repair services 4,951,834.41 3,688,668.68
Manufacture Co.,
Ltd.
Benxi Steel & Iron
(Group)
Spare parts 1,918,014.21 7,343,354.50
Construction Co.,
Ltd.
Benxi Steel & Iron
(Group)
Project fee 20,289,496.89 129,406,022.95
Construction Co.,
Ltd.
Benxi Steel & Iron
(Group)
Repair services 114,818,650.89 600,000,000.00 No 32,379,820.88
Construction Co.,
Ltd.
Benxi Steel & Iron
Raw material and
(Group)
supplementary 1,094,007.08 4,647,769.44
Construction Co.,
material
Ltd.
Benxi Steel & Iron
(Group)
Freight 1,313,481.92 1,550,379.98
Construction Co.,
Ltd.
Benxi Steel & Iron
(Group) Industrial
Spare parts 28,083,979.07 89,056,575.46
Development Co.,
Ltd.
Benxi Steel & Iron Raw material and 67,306,243.89 400,000,000.00 No 106,726,625.72
165
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(Group) Industrial supplementary
Development Co., material
Ltd.
Benxi Steel & Iron
(Group) Industrial
Repair services 18,294,485.36 11,179,880.95
Development Co.,
Ltd.
Benxi Steel & Iron
(Group) Industrial
Freight 1,018,074.77 1,370,590.70
Development Co.,
Ltd.
Benxi Steel & Iron
(Group) Industrial
Project fee 916,801.71 1,398,249.24
Development Co.,
Ltd.
Benxi Steel & Iron Raw material &
(Group) supplementary
3,263,891.55 1,396,647.57
Construction and materials & spare
Repairing Co., Ltd. parts
Benxi Steel & Iron
(Group)
Project fee 11,753,839.95 300,000,000.00 No 28,706,439.35
Construction and
Repairing Co., Ltd.
Benxi Steel & Iron
(Group) Accounts payable
83,273,978.63 21,309,880.35
Construction and for repair
Repairing Co., Ltd.
Bengang Raw material and
Electronics and Gas supplementary 64,119,457.44 200,000,000.00 No 84,260,711.25
Co., Ltd. material
Bengang
Electronics and Gas Project fee 0.00 419,352.41
Co., Ltd.
Bengang
Electronics and Gas Repair services 18,629,048.68 6,921,824.58
Co., Ltd.
Benxi High-tech
Drilling Tools
Spare parts 311,192.85 8,000,000.00 No 393,070.06
Manufacture Co.,
Ltd.
Benxi New Career Labor protection 442,032.39 20,000,000.00 No 294,457.32
166
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Development Co., fee
Ltd.
Liaoning
Metallurgy Spare parts 3,170,680.46 20,000,000.00 No 13,193,086.82
Technician College
Liaoning
Metallurgy Spare parts 6,037,417.64 10,000,000.00 No 2,303,327.48
Technician College
Bengang Group
International
Agency fee 35,649,297.75 350,000,000.00 No 36,856,843.30
Economic and
Trading Co., Ltd.
Bengang Group
International
Port surcharges 56,907,191.59 77,511,480.65
Economic and
Trading Co., Ltd.
Benxi Steel & Iron
(Group)
Information and Spare parts 9,332,489.18 70,000,000.00 No 6,932,300.00
Automatic Tech
Co., Ltd.
Benxi Steel & Iron
(Group)
Information and Repair services 23,358,888.88 3,059,417.05
Automatic Tech
Co., Ltd.
Benxi Steel & Iron
(Group) Thermal
Heating costs 377,311.58 20,000,000.00 No 1,686,000.00
Power Development
Co., Ltd.
Benxi Steel & Iron
(Group) Designing Design fees 2,315,800.00 20,000,000.00 No 2,359,000.00
Institute
Benxi Beiying Steel Raw material and
& Iron (Group) Co., supplementary 5,668,349,463.29 17,000,000,000.00 No 4,727,294,158.47
Ltd. material
Benxi Beiying Steel
& Iron (Group) Co., Energy & Power 388,658,384.32 501,840,790.72
Ltd.
Benxi Beiying Steel
Freight 3,031,478.40 8,894,757.14
& Iron (Group) Co.,
167
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Ltd.
Benxi Beiying Steel
& Iron (Group) Co., Labor cost 39,314,396.27 55,630,095.04
Ltd.
Benxi Beiying Steel
& Iron (Group) Co., Spare parts 10,645,896.19 18,442,067.23
Ltd.
Liaoning Hengtong
Metallurgical
Raw material and
Equipment 53,986,136.91 150,000,000.00 No 106,615,430.32
spare parts
Manufacture Co.,
Ltd.
Liaoning Hengtai
Raw material and
Heavy Machinery 1,248,720.58 50,000,000.00 No 38,734,351.70
spare parts
Co., Ltd.
Liaoning Hengtai
Repair and labor
Heavy Machinery 14,773,687.68 6,364,702.64
cost
Co., Ltd.
Bengang Group Property
310,698.12 8,000,000.00 No 310,698.12
Co., Ltd. management fee
Subtotal 9,238,643,173.88 24,136,000,000.00 8,709,027,523.89
Company as the seller
Unit: Yuan
The content of related party
Name January to June 2018 January to June 2017
transactions
Bengang Electronics and Gas
Energy & Power 518,976.61 496,261.60
Co., Ltd.
Raw material &
Benxi Beiying Steel & Iron
supplementary materials & 1,164,692,875.87 347,784,283.81
(Group) Co., Ltd.
spare parts
Benxi Beiying Steel & Iron
Products 12,301,312.89 4,973,269.68
(Group) Co., Ltd.
Benxi Beiying Steel & Iron
Energy & Power 57,068,870.93 143,893,069.82
(Group) Co., Ltd.
Benxi Steel & Iron (Group)
Real-estate Development Co., Energy & Power 69,433.26 137,583.72
Ltd.
168
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Benxi Steel & Iron (Group)
Steel & Iron Process and Energy & Power 375,198.36 503,015.61
Logistics Co., Ltd.
Benxi Steel & Iron (Group)
Machinery Manufacture Co., Products 9,733,073.15 4,620,747.58
Ltd.
Benxi Steel & Iron (Group)
Machinery Manufacture Co., Energy & Power 9,432,124.68 7,913,565.57
Ltd.
Benxi Steel & Iron (Group) Raw material &
Machinery Manufacture Co., supplementary materials & 1,135,830.68 514,127.97
Ltd. spare parts
Benxi Steel & Iron (Group)
Energy & Power 941,333.14 2,144,512.75
Construction Co., Ltd.
Raw material &
Benxi Steel & Iron (Group)
supplementary materials & 712,402.08 1,384,111.28
Construction Co., Ltd.
spare parts
Benxi Steel & Iron (Group)
Energy & Power 359,406,715.18 458,582,060.66
Mining Co., Ltd.
Raw material &
Benxi Steel & Iron (Group)
supplementary materials & 28,315,202.76 6,467,665.26
Mining Co., Ltd.
spare parts
Benxi Steel & Iron (Group)
Freight revenue 4,024,837.37 4,072,326.92
Mining Co., Ltd.
Benxi Steel & Iron (Group)
Thermal Power Development Energy & Power 23,749,581.93 14,523,775.89
Co., Ltd.
Benxi Steel & Iron (Group) Raw material &
Thermal Power Development supplementary materials & 8,018,498.91 685,704.00
Co., Ltd. spare parts
Benxi Steel & Iron (Group)
Thermal Power Development Freight revenue 85,835.38 96,738.16
Co., Ltd.
Benxi Steel & Iron (Group)
Industrial Development Co., Energy & Power 3,885,392.91 4,053,089.03
Ltd.
Benxi Steel & Iron (Group)
Industrial Development Co., Products 113,234.08 126,887.14
Ltd.
Benxi Steel & Iron (Group) Raw material & 12,517,810.34 27,595,285.96
169
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Industrial Development Co., supplementary materials &
Ltd. spare parts
Benxi Steel & Iron (Group)
Information and Automatic Energy & Power 90,072.21 83,013.82
Tech Co., Ltd.
Benxi Steel & Iron (Group)
Construction and Repairing Co., Energy & Power 839,850.93 772,159.41
Ltd.
Benxi Steel & Iron (Group) Raw material &
Construction and Repairing Co., supplementary materials & 122,645.70 98,352.61
Ltd. spare parts
Benxi Steel & Iron (Group)
Energy & Power 2,604,796.98 1,300,384.81
Metallurgy Residues Co., Ltd.
Raw material &
Benxi Steel & Iron (Group)
supplementary materials & 90,456,418.80 43,580,212.34
Metallurgy Residues Co., Ltd.
spare parts
Benxi Steel & Iron (Group)
Freight revenue 7,113,581.52 3,143.36
Metallurgy Residues Co., Ltd.
Benxi Steel & Iron (Group)
Products 7,126,315.80
Metallurgy Residues Co., Ltd.
Benxi Steel & Iron (Group) Co.,
Energy & Power 7,026,460.13 6,145,233.63
Ltd.
Raw material &
Benxi Steel & Iron (Group) Co.,
supplementary materials & 2,705,064.20 3,215,453.07
Ltd.
spare parts
Benxi New Career
Energy & Power 180,988.72 186,027.31
Development Co., Ltd.
Dalian Boluole Steel Tube Co.,
Products 1,757,572.24 2,237,856.57
Ltd.
Liaoning Bengang Steel & Iron
Products 460,444.50
Trading Co., Ltd.
Benxi Steel & Iron (Group)
Energy & Power 34,222.10 51,687.01
General Hospital
Liaoning Hengtong
Metallurgical Equipment Energy & Power 8,991,868.63
Manufacture Co., Ltd.
Liaoning Hengtong Raw material &
Metallurgical Equipment supplementary materials & 13,054,253.38 8,797,596.07
Manufacture Co., Ltd. spare parts
170
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Liaoning Hengtong
Metallurgical Equipment Products 0.00
Manufacture Co., Ltd.
Suzhou Bengang Industrial Co.,
Products 170,528,506.26 136,230,997.93
Ltd.
Bengang Group Finance Co.,
Energy & Power 7,026.08 7,485.42
Ltd.
Bengang Group Co., Ltd. Energy & Power 94,690.52 76,301.79
Total 1,993,714,690.30 1,249,932,616.49
Related party transactions of purchasing goods and services Notes
None
(2) Related trusteeship/contract
Lists of related trusteeship/contract:
Unit: Yuan
Income
Name of the Name of the
Type Initial date Due date Pricing basis recognized in the
entruster/contractee entrustee/contractor
reporting period
Notes
None
Lists of entrust/contractee:
Unit: Yuan
Change
Name of the Name of the
Type Initial date Due date Pricing basis recognized in the
entruster/contractee entrustee/contractor
reporting period
Notes
None
(3) Lease information of related parties
Company as the lessor:
Unit: Yuan
The lease income confirmed in The lease income confirmed in
Lessee Lease capital category
this year last year
Benxi Steel & Iron (Group)
Steel & Iron Process and Warehouse and machinery 250,000.00 250,000.00
Logistics Co., Ltd.
Benxi Steel & Iron (Group)
Plants and machinery 245,000.00 244,805.87
Machinery Manufacture Co.,
171
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Ltd.
Company as the lessee:
Unit: Yuan
Lessor Lease capital category Lease charges of current period Lease charges of previous period
Benxi Steel & Iron (Group) Co.,
2300 Hot rolling product line 120,000,000.00 120,000,000.00
Ltd.
Benxi Steel & Iron (Group) Co.,
Land use right 27,345,714.30 27,345,714.30
Ltd.
Benxi Beiying Steel & Iron
1780 Hot rolling product line 64,929,604.02 77,816,940.06
(Group) Co., Ltd.
Notes:
1. The Company leases 2300 hot rolling product line from the Group. Lease period lasts from 1 January 2018 to 31 December 2020.
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 0.594 per Square meter per month; hence annual rent is
RMB 54.69 million.
3. The Company leases 1780 hot rolling product line from Benxi Beiying Steel & Iron (Group) Co., Ltd. “Notice on Bengang Steel
Plates Co., Ltd. signing a renewal agreement with Benxi Steel (group) Co., Ltd” was adopted on the sixth meeting of the seventh
Board of Directors on 30 March 2017, it stipulated that the company leased the 1780 hot rolling product line from Benxi Beiying
Steel & Iron (Group) Co., Ltd., lease period lasts from 1 January 2017 to 31 December 2019. 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.
(4) Information of Guarantee among related parties
Company as the warrantor
Unit: Yuan
Starting date of Has the guarantee been
Secured party Guarantee amount Ending date of Guarantee
Guarantee fulfilled
Company as the warrantee
Unit: Yuan
Starting date of Has the guarantee been
Warrantor Guarantee amount Ending date of Guarantee
Guarantee fulfilled
Benxi Steel & Iron
270,000,000.00 2018-1-23 2019-1-22 No
(Group) Co., Ltd.
Benxi Steel & Iron
60,000,000.00 2018-2-1 2019-1-31 No
(Group) Co., Ltd.
172
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Benxi Steel & Iron
74,000,000.00 2018-5-25 2019-5-24 No
(Group) Co., Ltd.
Benxi Steel & Iron
150,000,000.00 2018-5-18 2019-5-17 No
(Group) Co., Ltd.
Benxi Steel & Iron
340,000,000.00 2018-2-11 2019-2-10 No
(Group) Co., Ltd.
Benxi Steel & Iron
200,000,000.00 2018-6-13 2019-6-12 No
(Group) Co., Ltd.
Benxi Steel & Iron
200,000,000.00 2018-6-12 2019-6-11 No
(Group) Co., Ltd.
Benxi Steel & Iron
100,000,000.00 2018-1-25 2019-1-23 No
(Group) Co., Ltd.
Bengang Group Co., Ltd. 150,000,000.00 2017-7-12 2018-7-12 No
Bengang Group Co., Ltd. 150,000,000.00 2017-7-12 2018-7-12 No
Bengang Group Co., Ltd. 87,280,000.00 2018-3-26 2024-6-21 No
Bengang Group Co., Ltd. 140,000,000.00 2018-1-19 2019-1-19 No
Bengang Group Co., Ltd. 83,000,000.00 2018-1-19 2018-12-28 No
Bengang Group Co., Ltd. 490,000,000.00 2017-8-28 2018-8-23 No
Benxi Steel & Iron
100,000,000.00 2018-1-4 2018-12-12 No
(Group) Co., Ltd.
Bengang Group Co.,
Ltd.、Benxi Steel & Iron 200,000,000.00 2017-9-6 2018-9-5 No
(Group) Co., Ltd.
Bengang Group Co.,
Ltd.、Benxi Steel & Iron 150,000,000.00 2017-10-23 2018-10-16 No
(Group) Co., Ltd.
Bengang Group Co.,
Ltd.、Benxi Steel & Iron 200,000,000.00 2017-10-16 2018-10-14 No
(Group) Co., Ltd.
Bengang Group Co.,
Ltd.、Benxi Steel & Iron 200,000,000.00 2017-11-13 2018-11-8 No
(Group) Co., Ltd.
Bengang Group Co.,
Ltd.、Benxi Steel & Iron 200,000,000.00 2017-11-15 2018-11-13 No
(Group) Co., Ltd.
Bengang Group Co.,
Ltd.、Benxi Steel & Iron 78,000,000.00 2017-12-15 2018-12-12 No
(Group) Co., Ltd.
173
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Bengang Group Co., Ltd. 160,000,000.00 2018-5-24 2019-5-24 No
Bengang Group Co., Ltd. 200,000,000.00 2018-4-28 2018-10-27 No
Bengang Group Co., Ltd. 200,000,000.00 2018-5-25 2018-11-24 No
Bengang Group Co., Ltd. 310,000,000.00 2018-3-28 2019-3-27 No
Bengang Group Co., Ltd. 720,000,000.00 2018-4-2 2019-4-1 No
Bengang Group Co., Ltd. 480,000,000.00 2018-1-22 2019-1-21 No
Bengang Group Co., Ltd. 135,000,000.00 2018-1-17 2018-12-28 No
Bengang Group Co., Ltd. 2,500,000,000.00 2018-3-9 2019-3-9 No
Bengang Group Co., Ltd. 300,000,000.00 2017-9-27 2018-9-26 No
Bengang Group Co., Ltd. 1,000,000,000.00 2017-11-16 2018-11-15 No
Bengang Group Co., Ltd. 1,190,000,000.00 2017-11-20 2018-11-19 No
Bengang Group Co., Ltd. 110,000,000.00 2017-9-29 2018-9-28 No
Bengang Group Co., Ltd. 110,000,000.00 2017-9-29 2018-9-27 No
Benxi Steel & Iron
595,494,000.00 2018-5-22 2019-5-21 No
(Group) Co., Ltd.
Benxi Steel & Iron
992,490,000.00 2018-5-18 2019-5-17 No
(Group) Co., Ltd.
Benxi Steel & Iron
681,509,800.00 2018-5-18 2019-5-17 No
(Group) Co., Ltd.
Benxi Steel & Iron
661,660,000.00 2018-2-24 2019-2-23 No
(Group) Co., Ltd.
Benxi Steel & Iron
148,873,500.00 2017-12-26 2018-12-25 No
(Group) Co., Ltd.
Bengang Group Co., Ltd. 321,363,000.00 2017-8-24 2018-8-19 No
Bengang Group Co., Ltd. 321,363,000.00 2017-8-24 2018-8-19 No
Bengang Group Co.,
Ltd.、Benxi Steel & Iron 100,000,000.00 2017-10-24 2018-10-18 No
(Group) Co., Ltd.
Bengang Group Co., Ltd. 100,000,000.00 2017-10-12 2018-7-3 No
Bengang Group Co., Ltd. 340,000,000.00 2017-8-29 2018-8-24 No
Bengang Group Co., Ltd. 220,000,000.00 2017-10-13 2018-10-13 No
Bengang Group Co., Ltd. 661,660,000.00 2016-8-30 2018-8-28 No
Bengang Group Co., Ltd. 317,596,800.00 2016-7-14 2018-7-12 No
Bengang Group Co., Ltd. 529,328,000.00 2018-5-2 2020-5-21 No
Bengang Group Co., Ltd. 132,332,000.00 2018-5-8 2020-5-7 No
Bengang Group Co., Ltd. 1,784,419.86 2015-6-25 2025-9-30 No
174
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Bengang Group Co., Ltd. 60,964,328.60 2015-8-20 2025-9-30 No
Bengang Group Co., Ltd. 4,569,380.16 2015-8-20 2019-9-30 No
Bengang Group Co., Ltd. 47,152.22 2015-6-25 2026-4-30 No
Bengang Group Co., Ltd. 4,265,410.93 2015-6-25 2026-4-30 No
Bengang Group Co., Ltd. 31,134.80 2015-12-28 2026-4-30 No
Bengang Group Co., Ltd. 52,021,540.64 2015-12-28 2026-4-30 No
Bengang Group Co., Ltd. 14,905,534.80 2015-6-25 2020-4-30 No
Bengang Group Co., Ltd. 5,330,620.24 2015-12-28 2020-4-30 No
Bengang Group Co., Ltd. 3,701,826.08 2015-6-25 2025-6-30 No
Bengang Group Co., Ltd. 105,854,646.37 2015-6-25 2025-6-30 No
Bengang Group Co., Ltd. 3,249,488.07 2015-12-28 2025-6-30 No
Bengang Group Co., Ltd. 7,350,268.71 2015-6-25 2019-6-30 No
Bengang Group Co., Ltd. 5,260,668.01 2015-12-28 2019-6-30 No
Bengang Group Co., Ltd. 5,502,007.57 2015-6-25 2025-10-31 No
Bengang Group Co., Ltd. 75,759,364.72 2015-6-25 2025-10-31 No
Bengang Group Co., Ltd. 35,042,698.40 2015-12-28 2025-10-31 No
Bengang Group Co., Ltd. 17,687,312.00 2015-6-25 2019-10-31 No
Bengang Group Co., Ltd. 339,391.62 2015-12-28 2019-10-31 No
Bengang Group Co., Ltd. 4,662,031.48 2015-6-25 2025-8-31 No
Bengang Group Co., Ltd. 91,745,966.56 2015-6-25 2025-8-31 No
Bengang Group Co., Ltd. 1,936,747.68 2015-12-28 2025-8-31 No
Bengang Group Co., Ltd. 13,872,549.01 2015-6-25 2019-8-31 No
Bengang Group Co., Ltd. 1,830,037.11 2015-12-28 2019-8-31 No
Bengang Group Co., Ltd. 4,912,894.25 2015-12-28 2019-7-30 No
Bengang Group Co., Ltd. 3,142,465.31 2016-6-27 2020-4-30 No
Bengang Group Co., Ltd. 28,518,079.72 2016-6-27 2020-4-30 No
Bengang Group Co., Ltd. 21,678,103.40 2016-12-14 2026-4-30 No
Bengang Group Co., Ltd. 280,176.20 2016-12-14 2020-4-30 No
Benxi Steel & Iron
12,494,181.60 1997-10-10 2027-9-10 No
(Group) Co., Ltd.
Bengang Group Co.,
Ltd.、Benxi Steel & Iron 100,000,000.00 2016-3-30 2025-3-20 No
(Group) Co., Ltd.
Bengang Group Co., Ltd. 100,000,000.00 2016-3-31 2018-3-31 No
Bengang Group Co., Ltd. 16,280,000.00 2015-3-26 2019-3-21 No
175
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Bengang Group Co., Ltd. 100,000,000.00 2015-6-25 2021-9-21 No
Bengang Group Co., Ltd. 24,000,000.00 2015-12-9 2022-3-21 No
Bengang Group Co., Ltd. 36,450,000.00 2016-12-27 2020-6-21 No
Bengang Group Co.,
Ltd.、Benxi Steel & Iron 700,000,000.00 2017-2-27 2025-2-20 No
(Group) Co., Ltd.
Bengang Group Co., Ltd. 59,570,000.00 2017-11-15 2021-12-21 No
Bengang Group Co., Ltd. 622,600,000.00 2017-12-15 2024-8-20 No
Bengang Group Co., Ltd. 165,961.04 2017-6-30 2019-9-30 No
Bengang Group Co., Ltd. 8,352,598.60 2017-6-30 2019-9-30 No
Bengang Group Co., Ltd. 254,917.14 2015-6-25 2025-9-30 No
Bengang Group Co., Ltd. 8,709,189.80 2015-8-20 2025-9-30 No
Bengang Group Co., Ltd. 4,569,380.16 2015-8-20 2019-9-30 No
Bengang Group Co., Ltd. 575,008.39 2015-6-25 2026-4-30 No
Bengang Group Co., Ltd. 6,940,356.74 2015-12-28 2026-4-30 No
Bengang Group Co., Ltd. 9,937,023.17 2015-6-25 2020-4-30 No
Bengang Group Co., Ltd. 3,553,746.83 2015-12-28 2020-4-30 No
Bengang Group Co., Ltd. 569,511.70 2015-6-25 2025-6-30 No
Bengang Group Co., Ltd. 16,285,330.18 2015-6-25 2025-6-30 No
Bengang Group Co., Ltd. 499,921.24 2015-12-28 2025-6-30 No
Bengang Group Co., Ltd. 14,700,537.26 2015-6-25 2019-6-30 No
Bengang Group Co., Ltd. 10,521,335.86 2015-12-28 2019-6-30 No
Bengang Group Co., Ltd. 11,608,767.50 2015-6-25 2025-10-31 No
Bengang Group Co., Ltd. 5,006,099.77 2015-12-28 2025-10-31 No
Bengang Group Co., Ltd. 17,687,311.92 2015-6-25 2019-10-31 No
Bengang Group Co., Ltd. 339,391.85 2015-12-28 2019-10-31 No
Bengang Group Co., Ltd. 13,772,571.15 2015-6-25 2025-8-31 No
Bengang Group Co., Ltd. 276,678.24 2015-12-28 2025-8-31 No
Bengang Group Co., Ltd. 13,872,549.01 2015-6-25 2019-8-31 No
Bengang Group Co., Ltd. 1,830,037.03 2015-12-28 2019-8-31 No
Bengang Group Co., Ltd. 4,912,894.25 2015-12-28 2019-7-30 No
Bengang Group Co., Ltd. 2,094,976.87 2016-6-27 2020-4-30 No
Bengang Group Co., Ltd. 3,802,410.63 2016-6-27 2020-4-30 No
Bengang Group Co., Ltd. 2,890,413.81 2016-12-14 2026-4-30 No
Bengang Group Co., Ltd. 186,783.98 2016-12-14 2020-4-30 No
176
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Bengang Group Co., Ltd. 42,860,000.00 2015-3-26 2019-3-21 No
Bengang Group Co., Ltd. 35,700,000.00 2016-12-27 2020-6-21 No
Bengang Group Co., Ltd. 165,961.04 2017-6-30 2019-9-30 No
Bengang Group Co., Ltd. 1,193,228.32 2017-6-30 2019-9-30 No
Benxi Steel & Iron
1,388,242.40 1997-10-10 2027-9-10 No
(Group) Co., Ltd.
(5) Inter-bank lending of capital of related parties
Unit: Yuan
Amount borrowed and
Name Date of value Maturity date Notes
loaned
Borrowed
Loaned
(6) Related party asset transfer and debt restructuring
Unit: Yuan
The content of related party
Name January to June 2018 January to June 2017
transactions
(7) Remuneration of key management personnel
Unit: Yuan
Items January to June 2018 January to June 2017
(8) Other related party transactions
(1) Loan from and deposits in Bengang Group Finance Co., Ltd.
Unit: 10000 Yuan
Items Beginning balance Increase Decrease Ending balance Notes
Deposits 895,092.14 8,124,747.92 8,170,013.95 849,826.11
The interests of deposits in Bengang Group Finance Co., Ltd. is RMB 12,943.20 thousand from January to June in 2018.As at 30
June 2018, interest due from Bengang Group Finance Co., Ltd is RMB 892.60 thousand. From January to June 2018, the deposit
interest income of the Company in Bengang Group Finance Co., Ltd. (hereinafter referred to as "finance company") was 51.184
million yuan. From January to June 2018, the amount of acceptance drafts issued by the financial company was 6.306 billion yuan,
and the amount of acceptance drafts drawn by the financial company as at 30 June 2018 was 1.689 billion yuan.
(2) Loan from and deposits in Benxi Steel and Iron (Group) Co., Ltd.
Unit: 10000 Yuan
177
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Items Beginning balance Increase Decrease Ending balance
Entrusted loan through
Bengang Group Finance 9,940.94 1,422.00 3,322.00 8,040.94
Co., Ltd.
The details of borrowing balance by 30 June 2018 are as follows:
Unit: Yuan
Name Form of loan Loan amount Date of value Maturity date
Benxi Steel & Iron (Group) Co., Entrusted loan through Bengang 14,220,000.00 2018-2-8 2019-2-8
Ltd. Group Finance Co., Ltd.
Benxi Steel & Iron (Group) Co., Entrusted loan through Bengang 11,369,400.00 2017-7-5 2018-7-5
Ltd. Group Finance Co., Ltd.
Benxi Steel & Iron (Group) Co., Entrusted loan through Bengang 32,700,000.00 2017-10-25 2018-10-25
Ltd. Group Finance Co., Ltd.
Benxi Steel & Iron (Group) Co., Entrusted loan through Bengang 22,120,000.00 2017-11-10 2018-11-10
Ltd. Group Finance Co., Ltd.
Total 80,409,400.00
The interest accrued is RMB 2,313,129.8, and as at 30 June 2018, the interest payable is RMB
250,796.57.
6. Receivables and payables of the related parties
(1) Receivables of the Company
Unit: Yuan
Ending balance Beginning balance
Items Name Name Provision for bad Provision for bad
Carrying amount Carrying amount
debts debts
Accounts receivable
Benxi Beiying Steel
& Iron (Group) Co., 2,093,051.44 7,012,602.40
Ltd.
Bengang Electronics
2,690,426.46 705,120.80 3,175,293.83 705,120.80
and Gas Co., Ltd.
Benxi Steel & Iron
(Group) Machinery
46,980,327.61 22,754,881.58 62,242,087.46 22,754,881.58
Manufacture Co.,
Ltd.
Benxi Steel & Iron
(Group)
Construction Co.,
178
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Ltd.
Benxi Steel & Iron
(Group) Industrial
34,624,704.64 8,840,761.28 41,088,306.07 8,840,761.28
Development Co.,
Ltd.
Benxi New Career
Development Co., 3,118,683.49 4,862,469.88 6,329,781.79 4,862,469.88
Ltd.
Benxi Steel & Iron
(Group) Thermal
2,404,254.86 2,735,216.00
Power Development
Co., Ltd.
Benxi Steel & Iron
(Group) Steel & Iron
Process and
Logistics Co., Ltd.
Bengang Cold-rolled
Stainless Steel 1,360,795.33 41,095.64 1,634,196.38 41,095.64
Dandong Co., Ltd.
Liaoning Hengtong
Metallurgical
Equipment 8,907,768.94 10,224,242.39
Manufacture Co.,
Ltd.
Bengang Group
International
19,353,272.46 41,420,410.19
Economic and
Trading Co., Ltd.
121,533,285.23 37,204,329.18 175,862,136.51 37,204,329.18
Prepayments
Benxi Beiying Steel
& Iron (Group) Co., 707,225,626.32 664,151,443.09
Ltd.
Benxi Steel & Iron
(Group) Machinery
9,914,952.40 9,675,956.28
Manufacture Co.,
Ltd.
Bengang Cold-rolled
Stainless Steel 40,044.33 47,265.79
Dandong Co., Ltd.
179
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
717,180,623.06 673,874,665.16
Other receivables
Benxi Steel & Iron
(Group) Real-estate
2,444,081.54 951,811.45 2,482,057.01 951,811.45
Development Co.,
Ltd.
Liaoning Metallurgy
132,388.44 156,265.86 156,265.86 156,265.86
Technician College
Benxi Steel & Iron
(Group) Machinery
12,626,479.38 2,462,178.25 14,890,418.63 2,462,178.25
Manufacture Co.,
Ltd.
Benxi Steel & Iron
(Group)
848,000.00 848,000.00 848,000.00 848,000.00
Construction Co.,
Ltd.
Bengang Group
International
17,464,021.64 8,617.52 20,014,006.17 8,617.52
Economic and
Trading Co., Ltd.
Benxi Steel & Iron
(Group) Industrial
528,704.40 435,795.46 522,192.66 435,795.46
Development Co.,
Ltd.
Benxi Steel & Iron
(Group) Zhengtai
198,993.78 193,367.73 198,993.78 193,367.73
Construction
Materials Co., Ltd.
Benxi Steel & Iron
(Group) Medical 774,666.03 674,813.30 913,607.45 674,813.30
Services Department
35,017,335.21 5,730,849.57 40,025,541.56 5,730,849.57
(2) Payables of the Company
Unit: Yuan
Items Name Name Ending balance Beginning balance
Notes payable
Benxi Steel & Iron (Group) 3,454,227.22 70,995,469.28
180
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Industrial Development Co.,
Ltd.
Benxi Steel & Iron (Group)
Machinery Manufacture Co., 272,795.76 47,785,625.82
Ltd.
Bengang Electronics and Gas
261,069.11 9,043,462.65
Co., Ltd.
Benxi Steel & Iron (Group)
Construction and Repairing Co., 0.00 2,747,433.39
Ltd.
Liaoning Metallurgy Technician
150,672.34 12,988,817.45
College
Benxi Steel & Iron (Group)
1,442,440,250.75 1,885,599,410.81
Mining Co., Ltd.
Benxi Steel & Iron (Group)
480,952.98 1,530,856.03
Construction Co., Ltd.
Benxi Steel & Iron (Group)
Information and Automatic 0.00 1,897,419.83
Tech Co., Ltd.
Benxi Beiying Steel & Iron
4,585,034,158.82 4,449,361,831.00
(Group) Co., Ltd.
Liaoning Hengtong
Metallurgical Equipment 0.00 37,787,569.38
Manufacture Co., Ltd.
Liaoning Metallurgy Technician
2,523,646.00 867,902.49
College
Liaoning Hengtai Heavy
0.00 371,310.17
Machinery Co., Ltd.
Benxi Steel & Iron (Group)
0.00 385,642.87
Metallurgy Residues Co., Ltd.
Benxi High-tech Drilling Tools
900,403.30 1,327,289.76
Manufacture Co., Ltd.
Benxi Steel & Iron (Group)
Real-estate Development Co., 6,076,161.39 5,404,436.06
Ltd.
6,041,594,337.67 6,528,094,476.99
Accounts payable
Bengang Electronics and Gas
11,400,746.44 13,082,201.84
Co., Ltd.
181
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Benxi Steel & Iron (Group)
Real-estate Development Co., 2,558,646.93 2,958,999.57
Ltd.
Bengang Group International
338,229,976.73 269,570,396.69
Economic and Trading Co., Ltd.
Benxi Steel & Iron (Group)
Machinery Manufacture Co., 150,004,403.40 152,335,130.90
Ltd.
Benxi Steel & Iron (Group)
60,491,249.15 61,431,145.68
Construction Co., Ltd.
Benxi Steel & Iron (Group)
267,921,364.64 316,188,485.52
Mining Co., Ltd.
Benxi Steel & Iron (Group)
Industrial Development Co., 77,120,281.35 88,858,487.56
Ltd.
Benxi New Career
7,876,872.71 8,989,400.97
Development Co., Ltd.
Benxi Steel & Iron (Group)
Construction and Repairing Co., 77,994,391.16 64,208,768.55
Ltd.
Benxi Steel & Iron (Group)
0.00 0.00
Designing Institute
Benxi Steel & Iron (Group)
57,233,885.90 45,897,262.15
Metallurgy Residues Co., Ltd.
Benxi 钢铁（集团）医疗卫生
20,877.77 20,440.35
部
Benxi Steel & Iron (Group)
Information and Automatic 35,749,683.50 40,861,451.02
Tech Co., Ltd.
Benxi High-tech Drilling Tools
113,088.45 110,719.06
Manufacture Co., Ltd.
Liaoning Metallurgy Technician
5,055,774.48 7,683,547.84
College
Liaoning Bengang Steel & Iron
0.00 0.00
Trading Co., Ltd.
Benxi Steel & Iron (Group)
Thermal Power Development 166,740.11 151,260.15
Co., Ltd.
Benxi Steel & Iron (Group) 379,603.07 374,362.00
182
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Zhengtai Construction
Materials Co., Ltd.
Liaoning Hengtong
Metallurgical Equipment 10,099,034.06 10,255,950.10
Manufacture Co., Ltd.
Liaoning Metallurgy Technician
2,033,176.85 2,325,632.06
College
Bengang Cold-rolled Stainless
1,080,154.08 1,054,117.38
Steel Dandong Co., Ltd.
Liaoning Hengtai Heavy
27,345,771.13 26,704,854.62
Machinery Co., Ltd.
Benxi Steel & Iron
(Group)Plant Construction 0.00 0.00
Supervisor Co., Ltd.
Bengang Group Co., Ltd. 0.00 0.00
1,132,875,721.90 1,113,062,614.01
Advance from customers
Benxi Steel & Iron (Group)
Machinery Manufacture Co., 2,286,737.46 2,322,244.58
Ltd.
Benxi Steel & Iron (Group)
Industrial Development Co., 487,826.73 591,520.22
Ltd.
Benxi Steel & Iron (Group)
1,342,694.25 2,850,730.90
Metallurgy Residues Co., Ltd.
Benxi Steel & Iron (Group)
Steel & Iron Process and 7,409,930.40 7,542,144.19
Logistics Co., Ltd.
Dalian Boluole Steel Tube Co.,
94,143.31 381,147.01
Ltd.
Liaoning Bengang Steel & Iron
58,041,408.40
Trading Co., Ltd.
Liaoning Hengtong
Metallurgical Equipment 1,327,379.71 1,609,530.39
Manufacture Co., Ltd.
Liaoning Hengtai Heavy
Machinery Co., Ltd.
Bengang Group International
Economic and Trading Co., Ltd.
183
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Suzhou Bengang Industrial Co.,
34,067,865.15 29,578,394.75
Ltd.
47,016,577.02 102,917,120.44
Other payables
Benxi Steel & Iron (Group)
Real-estate Development Co., 1,184,418.15 1,435,884.63
Ltd.
Bengang Group International
37,578,902.17 39,250,994.54
Economic and Trading Co., Ltd.
Benxi Steel & Iron (Group)
Machinery Manufacture Co., 14,082.30
Ltd.
Benxi Steel & Iron (Group)
3,556,112.90 4,171,540.23
Construction Co., Ltd.
Benxi Steel & Iron (Group)
Industrial Development Co., 1,001,710.82 980,723.34
Ltd.
Benxi New Career
1,014,673.55 1,096,387.29
Development Co., Ltd.
Benxi Steel & Iron (Group)
500,000.00 500,000.00
Metallurgy Residues Co., Ltd.
Benxi Steel & Iron (Group)
Medical Care department
Benxi Steel & Iron (Group)
Information and Automatic 105,421.43 107,000.00
Tech Co., Ltd.
Benxi Steel & Iron (Group)
Steel & Iron Process and 3,177,354.90 3,318,732.92
Logistics Co., Ltd.
Benxi Steel & Iron (Group) Co.,
86,805,543.86 71,070,528.79
Ltd.
Benxi Steel & Iron (Group)
Thermal Power Development 4,486,058.27 3,695,270.40
Co., Ltd.
Guangzhou Free Trade Zone
3,246,766.34 2,674,436.85
Bengang Sales Co., Ltd.
Benxi Steel & Iron
(Group)Plant Construction 725,194.00 710,000.00
Supervisor Co., Ltd.
184
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Liaoning Hengyi Financial
624,537.24 3,586.45
Leasing Co., Ltd.
Liaoning Metallurgy Technician
3,000.00 3,000.00
College
144,009,693.62 129,032,167.74
7. Related parties commitment
None
8. Others
None
XI. Share Based Payment
1. General situation of share payment
□Applicable √ Not applicable
2. Equity settlement of equity payments
□Applicable √ Not applicable
3. The situation of stock settlement paid in cash.
□Applicable √ Not applicable
4. Modification and termination of share payment.
5. Other
XII. Commitments and Contingencies
1. Commitments
Commitments at balance sheet date
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 0.594 per Square meter per month, and the area of the land is
7,669,068.17 square meters; hence annual rent is RMB 54,691.4 thousand.
(2) For the 2300 hot rolling product line leased from the Group to the Company, lease period lasts from 1 January 2018 to 31
December 2020. 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.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(3) For the 1780 hot rolling product line leased from Benxi Beiying Steel & Iron (Group) Co., Ltd. to the Company. “Notice on
Bengang Steel Plates Co., Ltd. signing a renewal agreement with Benxi Steel (group) Co., Ltd” was adopted on the sixth meeting of
the seventh Board of Directors on 30 March 2017, it stipulated that the company leased the 1780 hot rolling product line from Benxi
Beiying Steel & Iron (Group) Co., Ltd., lease period lasts from 1 January 2017 to 31 December 2019. 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.
2. Contingencies
(1) Significant contingency at balance sheet date
At the balance sheet date, no significant contingencies need to be disclosed.
(2) The Company have no significant contingency to disclose, also should be stated
At the balance sheet date, no significant contingencies need to be disclosed.
2. Others
XIII. Subsequent events
1. Significant events had not adjusted
Unit: Yuan
Influence number to the
Reason of unable to estimate
Items Content financial position and operating
influence number
results
2. Profit distribution after the reporting period
Unit: Yuan
Profit or dividend to be allocated 193,768,576.60
Profits or dividends declared and approved through deliberation and
193,768,576.60
approval
3. Sales return
4. Other subsequent events
At the fifteenth meeting of the seventh Board of Directors on April 18, 2018, based on the existing 3,875,371,532.00 shares, the
Company planned to distribute cash dividends RMB0.5 per 10 shares (including tax) to shareholders. The Company planned to
distribute RMB193,768,576.60 dividends for ordinary shares. The dividend distribution scheme was approved by the Annual General
186
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Meeting of Shareholders in 2017, which was held in May 24, 2018. On July 11, 2018, the Board of Directors of the Company issued
Announcement of Dividend Distribution for Year 2017. The registration date of A shares is July 17, 2018, the ex-dividend date is July
18, 2018; the registration date of B shares is July 20, 2018, the ex-dividend date is July 18, 2018. As of the announcement date of this
report, dividend distribution for year 2018 is over.
XIV. Other significant events
1. The accounting errors correction in previous period
(1) Retrospective restatement
Unit: Yuan
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
2. Debt restructuring
3. Replacement of assets
(1) Non-monetary assets exchange
(2) Other assets replacement
4. Pension plan
5. Discontinuing operation
Unit: Yuan
Termination of
the business
Income tax profits
Items Revenue Expenses Total profit Net Profit
expense attributable to the
parent company
owner
Notes
187
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
(2) Financial information of segment
Unit: Yuan
Items Offset in segment 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) Notes
Since the Company’s main product is steel with other products accounting for only a small proportion, and the main production base
is located in Liaoning area, segmented reporting is not applicable.
7. Other important transactions and events have an impact on investor’s decision-making
1. On 5 February 2015, the Company publicly issued a three-year corporate bond worth RMB 1.5 billion with interest rate at 5.17%.
The Company delisted the bond in accordance with statutory procedures in 1 February 2018 and completed the payment in 5
February 2018.
2. On 27 December 2016, the Company's first Provisional General Meeting of Shareholders in 2016 considered and adopted the
"Proposal on the Company's non-public offering of A shares (December 2016 revised version) ". On 16 December 2017, the
Company's first Provisional General Meeting of Shareholders in 2017 considered and adopted the "Proposal on the extension of term
of validity of non-public offering of stocks shareholders meeting resolution". The proposed issue of stocks to specific targets would
raise 4 billion yuan. The main purposes of the fund raised by the Company are cold-rolled high-strength steel transformation project,
hot-dip galvanizing production line project of the third cold rolling mill, and repayment of bank loans. As of 8 Februry 2018, the
Company actually issued 739,371,532 shares of RMB common stock to investors in private, with a par value of 1 yuan per share and
an issue price of 5.41 yuan per share, raising a total of 3,999,999,988.12 yuan. After deducting all the issuing fees, the Company's net
funds raised was RMB 3,967,735,837.24 yuan. Availability of the above-mentioned fund was verified by BDO China Shu Lun Pan
Certified Public Accountants LLP and issued the Capital Verification Report (PCPAR (2018) No. ZB10054). The Company has
adopted a special account storage system for the fund.
3. As at 30 June 2018, the controlling shareholder Benxi Steel & Iron (Group) Co., Ltd. held a total number of 1,523,095,133 shares
pledged, and a total number of 45,000,000.00 shares frozon.
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8. Others
XV. Notes to the financial statements of parent company
1. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: Yuan
Ending balance Beginning balance
Provision for bad Total net
Carrying amount Carrying amount Provision for bad debts Total net
debts book
Category book value
Bad value of
Percenta Percenta Bad debts of Fixed
Amount Amount debts Fixed Amount Amount
ge ge ratio assets
ratio assets
Individually
significant and tested 47,762,3 47,762,3 47,762, 47,762,33
7.03% 100.00% 6.51% 100.00%
for impairment 37.18 37.18 337.18 7.18
individually
Accounts receivable
631,735, 190,040, 441,694,8 685,620 203,438,4 482,181,59
tested for impairment 92.97% 30.08% 93.49% 29.67%
005.27 200.11 05.16 ,057.01 63.56 3.45
by portfolio
679,497, 237,802, 441,694,8 733,382 251,200,8 482,181,59
Total 100.00% 100.00%
342.45 537.29 05.16 ,394.19 00.74 3.45
Receivable accounts with large amount individually and bad debt provisions were provided:
√ Applicable □ Not applicable
Unit: Yuan
Ending balance
Accounts receivable
Accounts receivable Provision for bad debts Bad debts ratio Reason
Benxi Nanfen Xinhe
47,762,337.18 47,762,337.18 100.00% Stop production
Metallurgical Co., Ltd.
Total 47,762,337.18 47,762,337.18 -- --
Accounts receivables tested for impairment by portfolio using the method of Aging analysis:
√ Applicable □ Not applicable
Unit: Yuan
Ending balance
Aging
Accounts receivable Provision for bad debts Bad debts ratio
Within 1 year (inclusive)
Within 1 year 341,466,965.43
189
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Subtotal of within 1 year 341,466,965.43
1-2 years 31,356,340.60 1,567,817.03 5.00%
2-3 years 88,049,145.20 17,609,829.04 20.00%
Over 3 years 170,862,554.04 170,862,554.04 100.00%
Total 631,735,005.27 190,040,200.11
Receivable accounts on which bad debt provisions are provided on percentage analyze basis in a portfolio:
□ Applicable √ Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the portfolio:
(2) Information of provision, reversal or recovery of bad debts of current period
The provision of bad debts of current period is RMB0.00；Bad debt provision written back was RMB 13,398,263.45 in the period.
Significant items of retrieving or writing back of bad debt provisions:
Unit: Yuan
Company Amount retrieved or written back way of retrieving
(3) Receivable accounts actually written off in the report period
Unit: Yuan
Items Amount written off
Significant amount written off:
Unit: Yuan
Property of the Reason of writing Written off Created by related
Company Amount written off
receivable account off procedures transaction or not
Statement on writing off of receivable accounts:
(4) Top five debtors at the year-end
Ending balance
Percentage of total
Company
Accounts receivable accounts receivable Provision for bad debts
(%)
No.1 179,688,274.41 26.44
No.2 86,329,597.52 12.70 6,513,105.93
No.3 47,762,337.18 7.03 47,762,337.18
No.4 46,980,327.61 6.91 22754881.58
No.5 34,624,704.64 5.10 8,840,761.28
Total 395,385,241.36 58.19 85,871,085.97
190
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
(5) Recognition of receivable accounts terminated
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
Notes:
2. Other receivables
(1) Other receivables disclosed by category
Unit: Yuan
Ending balance Beginning balance
Provision for bad Total net
Carrying amount Carrying amount Provision for bad debts Total net
debts book
Category book value
Bad value of
Percenta Percenta Bad debts of Fixed
Amount Amount debts Fixed Amount Amount
ge ge ratio assets
ratio assets
Other receivable
423,551, 66,244,3 357,307,1 442,492 67,369,41 375,123,44
tested for impairment 99.59% 15.64% 99.61% 15.22%
471.68 47.69 23.99 ,865.67 6.95 8.72
by portfolio
Other insignificant
items but tested for 1,740,00 1,740,000 1,740,0 1,740,000.0
0.41% 0.39%
impairment 0.00 .00 00.00 0
individually
425,291, 66,244,3 359,047,1 444,232 67,369,41 376,863,44
Total 100.00% 100.00%
471.68 47.69 23.99 ,865.67 6.95 8.72
Other receivable accounts with large amount and were provided bad debt provisions individually at end of period.
□ Applicable √ Not applicable
Other receivables tested for impairment by portfolio using the method of Aging analysis:
√ Applicable □ Not applicable
Unit: Yuan
Ending balance
Aging
Other receivables Provision for bad debts Bad debts ratio
Within 1 year (inclusive)
Within 1 year (inclusive) 215,735,192.31
Subtotal of within 1 year 215,735,192.31
1-2 years 8,601,980.20 430,099.01 5.00%
2-3 years 136,122,500.50 2,722,450.01 20.00%
191
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Over 3 years 63,091,798.67 63,091,798.67 100.00%
Total 423,551,471.68 66,244,347.69
Provision of bad debts under the percentage of balance method:
□ Applicable √ Not applicable
Provision of bad debts under other methods:
□ Applicable √ Not applicable
(2) Information of provision, reversal or recovery of bad debts of current period
The provision of bad debts of current period is RMB0.00；Bad debt provision written back was RMB 1,125,069.26 in the period.
There into, the significant bad debt provision written back or retrieved during the current period:
Unit: Yuan
Company Amount of written back or retrieving way of retrieving
(3) Receivable accounts written back or retrieved in the report period
Unit: Yuan
Items Amount written off
Significant other receivables:
Unit: Yuan
Reason of writing Written off Created by related
Company Property of account Amount written off
off procedures transaction or not
Notes:
(4) Other receivables disclosed by nature
Unit: Yuan
Nature Ending balance Beginning balance
Accounts 418,226,206.68 435,666,187.53
Others 7,065,265.00 8,566,678.14
Total 425,291,471.68 444,232,865.67
(5) Top five debtors at the year-end
Unit: Yuan
Percentage of total Provision for bad
Company Nature or content Ending balance Aging
other receivables debtsEnding balance
Within 1 year RMB
No.1 Accounts 16,083,670.47 3.78% 176,531.88
12,553,032.8, 1-2
192
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
years RMB
3,530,637.67
No.2 Accounts 12,626,479.38 1-3 years 2.97% 2,462,178.25
No.3 Accounts 9,188,976.40 Within 1 year 2.16%
No.4 Others 5,922,247.07 Within 1 year 1.39%
No.5 Accounts 4,341,257.18 Over 3 years 1.02% 4,341,257.18
Total -- 48,162,630.50 -- 11.32% 6,979,967.31
(6) Receivable accounts involving the government
Unit: Yuan
Government Subsidies Predicted time and
Company Ending balance Age at end of period
Items Name amount of receiving
(7) De-recognition other receivables due to financial assets transfer
(8) Assets and liabilities formed by transferring and continuous involvement of other receivables
Notes:
3. Long-term equity investments
Unit: Yuan
Ending balance Beginning balance
Items
Carrying amount Total impairment Book value Carrying amount Total impairment Book value
Investment to
2,016,281,902.16 2,016,281,902.16 1,756,981,902.16 1,756,981,902.16
subsidiaries
Total 2,016,281,902.16 2,016,281,902.16 1,756,981,902.16 1,756,981,902.16
(1) Investment to subsidiaries
Unit: Yuan
Total
Company invested Beginning AmountProvision
Increase Decrease Ending balance impairmentEndin
in balance Total impairment
g balance
Guangzhou
Bengang Steel &
1,000,000.00 29,000,000.00 30,000,000.00
Iron Trading Co.,
Ltd.
Shanghai Bengang 19,200,000.00 10,800,000.00 30,000,000.00
193
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Metallurgy
Science and
Technology Co.,
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 29,500,000.00 28,144,875.36
Iron Sales Co.,
Ltd.
Harbin Bengang
Economic and 423,398.23 29,500,000.00 29,923,398.23
Trading Co., Ltd.
Nanjing Bengang
Steel Material 2,081,400.65 2,081,400.65
Sales Ltd.
Wuxi Bengang
Steel & Iron Sales 936,718.57 29,000,000.00 29,936,718.57
Co., Ltd.
Xiamen Bengang
Steel & Iron Sales 1,095,711.66 1,095,711.66
Co., Ltd.
Yantai Bengang
Steel & Iron Sales 19,600,329.41 29,500,000.00 49,100,329.41
Co., Ltd.
Tianjin Bengang
Steel & Iron 33,318,095.80 27,000,000.00 60,318,095.80
Trading Co., Ltd.
Benxi Bengang
Steel Sales Co., 5,000,000.00 25,000,000.00 30,000,000.00
Ltd
Shenyang 5,000,000.00 25,000,000.00 30,000,000.00
194
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
Bengang
Metallurgical
Science and
Technology Co.,
Ltd.
Chongqing
Liaoben Steel &
5,000,000.00 25,000,000.00 30,000,000.00
Iron Trading Co.,
Ltd.
Bengang Baojin
(Shenyang)
51,000,000.00 51,000,000.00
Automobile New
Material Co, Ltd.
Total 1,756,981,902.16 259,300,000.00 2,016,281,902.16
(2) Investment to joint venture and associated enterprise
Unit: Yuan
Changes Ending
Adjustme balance
Investme
nt of Declarati of
Beginnin Add Reduce nt income Other Provision Ending
Name other on of cash provision
g balance investmen investmen under equity impairme Others balance
comprehe dividends for
t t equity changes nt
nsive or profit impairme
method
income nt
1. Joint venture
2. Associated enterprise
(3) Notes
4. Operating income and operating cost
Unit: Yuan
January to June 2018 January to June 2017
Items
Revenue Cost Revenue Cost
Principal business 21,543,654,805.89 19,737,906,706.75 19,350,686,493.45 17,842,348,026.16
Other business 2,139,210,303.25 1,663,285,255.45 1,846,830,285.75 1,640,628,048.16
Total 23,682,865,109.14 21,401,191,962.20 21,197,516,779.20 19,482,976,074.32
Notes:
195
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
5. Income on investment
Unit: Yuan
Items January to June 2018 January to June 2017
Income from long-term equity investment
102,074,634.76
(cost method)
Income from bank short-term financial
3,493,150.68 3,294,593.14
products
Total 3,493,150.68 105,369,227.90
6. Others
XVI. Supplementary information
1. Details of non-recurring profit and loss
√ Applicable □ Not applicable
Unit: Yuan
Items January to June 2018 Notes
Profit or loss from disposal of non-current
-556,821.63
assets
Details of government subsidies recorded
into current profits and loss(except such
government subsidy closely related to the
company’s normal business operation,， 41,274,238.70
meeting the regulation of national policy and
enjoyed constantly in certain quota or
quantity according to a certain standard)
Profit or loss from debt restructuring 945,892.23
Other non-operating revenue and
1,192,505.57
expenditure other than above items
Less: Impact of income tax 10,713,953.72
Impact of non-controlling interests 112,829.54
Total 32,029,031.61 --
For the Company’s non-recurring profit and loss items as defined in “the Explanatory Announcement No.1 on information disclosure
for Companies Offering their Securities to the Public-Non-recurring Profits and Losses” and its non-recurring profit and loss items as
illustrated in “the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the
Public-Non-recurring Profits and Losses” which have been defined as recurring profits and losses, it is necessary to explain the
reason.
□ Applicable √ Not applicable
196
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
2. Net asset yield and earnings per share
Earnings per share
Diluted gains per share
Profit in the Reporting Period Weighted average net assets yield (%) Basic earnings per share
(RMB/Share)
(RMB/Share)
(RMB/Share)
Net profit attributable to ordinary
4.56 0.195 0.195
shareholders
Net profit attributable to ordinary
shareholders after deducting 4.37 0.187 0.187
non-recurring profit and loss
3. The differences between domestic and international accounting standards
(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
Unit: Yuan
Net Profit Net assets
January to June 2018 January to June 2017 Ending balance Beginning balance
According to CAS 756,951,987.59 523,635,653.57 18,861,998,055.40 14,315,588,729.00
Items and amount adjusted according to IAS:
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
□ Applicable √ Not applicable
(3) Accounting data differences between domestic and foreign accounting standards，if the differences has
already been adjusted by the foreign audit agency shall indicate the name of the agency.
4. Others
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2018
XI. Documents available for inspection
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.
198
