Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Bengang Steel Plates Co., Ltd.
Semi-Annual Report 2019
August, 2019
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
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.
Gao Lie, Chairman of the Company, Shen Qiang, 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.
All the members of the Board of Directors attended the board meeting on which this report was
examined.
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 2019
Table of Contents
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 ......................................................................................... 11
V. Important Events ........................................................................................................................... 18
VI. Status of Share Capital Changes and Shareholders ..................................................................... 39
VII. Status of Preferred Shares .......................................................................................................... 43
VIII. Status of Directors, Supervisors, and Senior Executives .......................................................... 44
IX. Relevant Information about Corporate Bonds ............................................................................. 46
X.Financial Report ............................................................................................................................. 47
XI.Documents available for inspection ............................................................................................ 102
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Definition
Terms to be defined Refers to Content of Definition
Bengang Bancai, Bengang Steel, the
Refers to Bengang Steel Plates Co., Ltd.
Company, 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 Liaoning State-owned Asset Supervisory and
Refers to
Administration Management Committee
SSE Refers to Shenzhen Stock Exchange
Bengang Posco Refers to Bengang Posco Cold-rolled Sheet Co., Ltd.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
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
name in Chinese 本钢板材
Company name in English
(If any) BENGANG STEEL PLATES CO., LTD.
Abbreviation of Company
name in English (If any) BSP
Legal representative Gao Lie
II. Contact Information
Secretary of the Board Representative of Stock Affairs
Name Gao Desheng
No.16, Renmin Road, Pingshan District,
Address
Benxi City, Liaoning Province
Tel 024-47827003
Fax 024-47827004
Email bgbcdm@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 2018 for details.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
2. Place for information disclosure
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 2018 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
Unit: Yuan
Increase or decrease in this
Same period in previous
This reporting period reporting period over the
year
previous year
Operating income 24,102,595,167.14 23,441,247,377.14 2.82%
Net profit attributable to the shareholders
453,209,615.76 756,951,987.59 -40.13%
of the listed company
Net profit attributable to the shareholders
of listed company after deducting 461,338,410.13 724,922,955.98 -36.36%
non-recurring gain/loss
Net cash flows generated by operating
984,787,005.67 730,519,741.47 34.81%
activities
Basic earnings per share 0.12 0.20 -40.00%
Diluted earnings per share 0.12 0.20 -40.00%
ROE 2.35% 4.56% -2.21%
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 61,423,927,056.10 59,632,504,915.83 3.00%
Net assets attributable to shareholders of
19,406,029,174.41 19,126,258,116.67 1.46%
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: RMB
Net profit attributable to the shareholders of the Net assets attributable to the
listed company shareholders of the listed company
This reporting period Previous reporting period Ending balance Beginning balance
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
According to Chinese
453,209,615.76 756,951,987.59 19,406,029,174.41 19,126,258,116.67
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
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: yuan
Items Amount Notes
Profit or loss from disposal of non-current assets
(including the write-off part for which assets impairment -49,987,558.33
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,，
41,695,000.00
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 50,640.00
Other non-operating revenue and expenditure other than
172,778.52
above items
Less: Impact of income tax 55,854.63
Impact of non-controlling interests (after tax) 3,799.93
Total -8,128,794.37 --
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 2019
III. Summary of Company Business
I. The Company's main business during the reporting period
Whether the Company needs to comply with the disclosure requirement for special industry
No
(1) During the reporting period, the company's main business activities include steel smelting, rolling processing, power
generation, coal chemical industry, special steel profiles, railways, import and export trade, scientific research, and
product sales. The introduction of world advanced equipment technology has enabled the implementation of equipment
upgrades for the steel industry. The Company has built a fine steel base, formed more than 60 varieties, more than 7500
series of product specifications, high value-added and high-tech product ratio reached more than 80%, automotive
surface panels, household appliances, oil pipeline steel, container board Shipboard and other leading products are
widely used in automobiles, home appliances, petrochemicals, aerospace, machinery manufacturing, energy
transportation, construction and decoration, and metal products, and are exported to more than 60 countries and regions.
（2）During the reporting period, the main performance drivers were: the “four determinants” work cut down two layers
of management and reduced 35.5% of the leader on department level and above; Through exchanges, adjustments, early
departures and open competitions, the cadres can get through the channels, the leading cadres at the department level
and above are reduced by 15.03%, the management personnel are reduced by 15%, and the proportion of production
and mining management business personnel is reduced to 8% (thereinto, bureau-level cadres reduced by 40%). At the
same time, a lean and efficient management and control system has been established, and overlapping, low-efficiency,
and false institutions have been thoroughly cleaned up, releasing corporate vitality. Focusing on process improvement,
product structure adjustment, energy conservation and emission reduction, the Company accelerated the construction of
key project transformation projects, conscientiously organized the construction of projects such as the production of
sheet metal CCPP power generation and special steel electric furnace capacity replacement. The Company promoted
enterprise transformation and upgrading based on high-quality development requirements.
No significant change occurred during the reporting period.
II. Major Changes in Main Assets
1. Major Changes in Main Assets
Main assets Notes to major changes
Equity assets No significant changes.
Fixed assets No significant changes.
Intangible assets No significant changes.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
The balance at 30 June 2019 is RMB 1,374,411.00 thousand and it has increased
Construction in progress by 64.29%, which is mainly due to the new construction of the company's
construction projects in the current period.
2. Main Information of Overseas Assets
□ Applicable √ Not applicable
III. Analysis on Core Competitiveness
Whether the Company needs to comply with the disclosure requirement for special industry
No
In the first half of 2019, Bengang Steel Plate Co., Ltd. officially joined the Corrosion Resistant Steel Technology
Innovation Alliance, China Intellectual Property Development Alliance, and entered the executive director unit of the
Journal of Iron and Steel Research. Bengang Steel applied for promotion to be a member of the Lightweight Alliance.
Successfully hosted the 2019 Automotive Lightweight Alliance Annual Work Conference, which was well received by
the leaders of the Alliance and the delegates, and achieved the purpose of promoting the steel products of Bengang Steel
and Bengang Steel. A total of 25 government projects were filed, including 11 provincial key projects in the Ministry of
Industry and Information Technology in 2019, 9 provincial science and technology projects declared by the Provincial
Science and Technology Department in 2019, and 1 NSFC-Liaoning Joint Fund Project of the Provincial Science and
Technology Department, and 2 projects of the National Natural Science Foundation of China Regional Innovation and
Development Joint Fund Guide Project. "Bengang Shenyang Research Institute Construction" is intended to be included
in the national and provincial "fourteenth five-year" planning major projects. Cooperation with Dongda “Research on
the new technology of composite iron coke low-carbon ironmaking charge” has been approved by the NSFC-Liaoning
Joint Fund. Bengang will receive government funding of 502,000 yuan and has reached 334,000 yuan. “Development of
high fatigue and thick gauge rare earth hot formed steel” was selected into the “100 Million Talent Project” project in
Liaoning Province, with an estimated funding of 50,000 yuan.
In order to comprehensively improve the level of technological innovation and profitability, strengthen product
adjustment and market development, improve product quality stability and assurance capabilities, promote low-cost and
green manufacturing technologies, Bengang Steel identified 50 projects as the company’s direct management level
science and technology projects, and 98 projects as self-management level scientific and technological projects of the
mines based on three major factors, which are variety, quality and cost. Bengang Steel processed classification
management. The projects are divided into three categories according to the degree of importance. Based on the
principle of responsibility to people and division of labor management, Bengang Steel conducted key control of the
project and advancement in order. In the first half of the year, 33 new products were successfully developed, including 5
new products for automobile panels, 8 for silicon steel and home appliances, 13 for hot-rolled high-strength steel
products and 7 for special steel products. Completed 57 grades of acid pickling, cold rolling, galvanizing, silicon steel
and other products, including 3 pickling, 42 cold rolling, 10 galvanizing, and 2 silicon steel. In the first half of the year,
a total of 94 patents were accepted by the National Patent Office, including 54 inventions and 40 utility models; 68
patents were authorized by the National Patent Office, including 6 inventions, 57 utility models, and 5 designs.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Bengang Steel continued to promote school-enterprise cooperation and joint work of production, education and research.
Bengang Steel signed five cooperation projects with Northeastern University; Bengang-Liaokeda Joint Fund Project
made substantial progress and officially signed four cooperation projects; cooperated with the Institute of Metals of the
Chinese Academy of Sciences, platform construction, and joint training of multiple rounds of docking work.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
IV. Management Discussion and Analysis
I. General
In the first half of 2019, the company's overall performance was generally outstanding, production and management had
a new improvement, and the reform tasks were solidly promoted. The main indicators achieved steady growth,
including: 4.758 million tons of pig iron, an increase of 833,600 tons, an increase of 21.24%; crude steel of 4,872,600
tons, an increase of 729,400 tons, an increase of 17.6%; hot rolled sheet of 6.1 million tons, an increase of 620,000 tons,
an increase of 11.3%; cold rolled sheet of 2,897,200 tons, an increase of 56,900 tons, an increase of 2%; special steel of
225,600 tons, a decrease of 104,600 tons, a decrease of 31.7%.
During the reporting period, the company adopted the budget-based “overall every control and clear” work and actively
promoted the construction of a three-level cost accounting system to continuously reduce production and operation
costs, and took important steps in the standard mining and digging work. The process was benchmarked with the same
type of steel mill and the results were remarkable. The average daily output of the new No. 1 blast furnace and No. 6
blast furnace in the plate ironmaking plant reached the best level in history. Sheet steel mills set a record for daily
output. The plate hot rolling mill refreshed the highest daily production record of the whole plant twice. Under the
premise of continuous improvement of the physical quality of the products, the plate cold rolling mill has achieved
record high output, and the quality management of the automobile plate has been steadily improved. The middle and
high-end cold-rolled automobile is qualified. The rate is the best in history and mass production is achieved.
Scientific and technological innovation and new product research and development have reached a new level, and 33
new products have been successfully developed. The successful research and development of quenching and
distribution steel QP980 for cold forming has filled the gap in QP steel production and laid the foundation for the
advanced automobile steel production enterprises. The Company completed Ford's first certification and Renault's
production line certification work, and actively promoted BMW certification.
At the same time, the work of “Four Determinants” continued to advance. On the basis of realizing the reduction of
management level, the institutions at the department level and above were further reduced, and the channels for cadres
can be opened up and down through communication, adjustment, early departure and open competition. The
establishment of a lean and efficient management and control system, overlapping, low-efficiency, and virtual
institutions have been thoroughly cleaned up, releasing the vitality of the enterprise.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
II. Main Business Analysis
1. General
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
This reporting period this reporting period over Reason for change
previous year
the previous year
Operating Income 24,102,595,167.14 23,441,247,377.14 2.82%
Operating Cost 22,067,612,729.65 20,804,207,420.98 6.07%
Selling and
574,445,199.14 514,038,008.95 11.75%
distribution expenses
General and
administrative 446,767,811.77 461,842,424.56 -3.26%
expenses
Net exchange losses
increased over same
Financial expenses 403,465,706.42 803,038,417.28 -49.76%
period in previous
year.
Deferred income tax
increased over same
Income tax expense 25,962,181.73 11,636,226.04 123.12%
period in previous
year.
Research &
Development 697,727,326.64 726,678,668.69 -3.98%
Expenses
Net cash flows Cash received
generated from 984,787,005.67 730,519,741.47 34.81% increased over same
operating activities period in previous year
Cash received from
Net cash flow
return on investments
generated from -545,199,197.41 -176,948,631.71 208.11%
increased over same
investment activities
period in previous year
Cash paid to reimburse
Net cash flow
borrowings decreased
generated from -451,444,368.47 -1,657,793,276.26 -72.77%
over same period in
financing activities
previous year
Cash received
increased and cash
Net increase in cash paid to reimburse
36,373,947.54 -999,206,556.27 -103.64%
and cash equivalents borrowings decreased
over same period in
previous year
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.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
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
Industry 22,581,458,005.55 20,807,089,888.18 7.86% 6.01% 8.70% -2.29%
By products
Steel plate 22,258,028,765.53 20,524,102,578.76 7.79% 6.40% 9.22% -2.38%
Others 323,429,240.02 282,987,309.42 12.50% -15.49% -18.83% 3.59%
By regions
Northeast 5,606,217,660.27 5,175,158,018.48 7.69% 23.89% 26.62% -1.99%
North China 2,740,664,946.06 2,523,356,229.07 7.93% 10.54% 12.24% -1.39%
East China 9,115,871,237.78 8,384,696,685.96 8.02% 30.25% 32.89% -1.83%
Northwest 52,280,532.42 48,714,460.39 6.82% 3.17% 5.47% -2.03%
Central south 999,070,769.35 928,444,843.65 7.07% 2.34% 5.38% -2.68%
Export 4,067,352,859.68 3,746,719,650.63 7.88% -35.15% -32.72% -3.33%
Subtotal 22,581,458,005.55 20,807,089,888.18 7.86% 0.35% 0.50% -0.13%
III. Analysis of Non-core Business
√ Applicable □ Not applicable
Unit: Yuan
Proportion in total
Amount Explanation of cause Sustainable (yes or no)
profit
Income on
25,907.49 0.01%
investment
Non-operating
8,210,182.24 1.71% No
income
Non-operating
57,974,322.05 12.11% 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
Proportio
Proportio Proportion
n in the Notes to significant changes
n in the change
Amount Amount total
total
assets
assets (%)
(%)
Cash at bank and
16,945,772,392.43 27.59% 18,570,241,607.21 29.00% -1.41%
on hand
Accounts
614,718,839.21 1.00% 707,889,986.34 1.11% -0.11%
receivable
Inventories 11,967,579,023.47 19.48% 12,893,804,549.47 20.14% -0.66%
Long-term equity 2,481,589.04 0.00% 2,726,009.03 0.00% 0.00%
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
investments
Fixed assets 22,672,967,771.15 36.91% 22,739,708,839.78 35.51% 1.40%
Construction in
1,374,410,959.70 2.24% 2,740,359,727.63 4.28% -2.04%
progress
Short-term loans 12,298,193,000.00 20.02% 21,784,802,700.00 34.02% -14.00%
Long-term loans 6,213,054,564.15 10.12% 4,406,999,573.88 6.88% 3.24%
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
Cash at bank and on hand 5,156,849,822.92 Deposit for notes and L/C
Total 5,156,849,822.92
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
There is no investment in securities during the reporting period.
(2) Investment in Derivatives
□ Applicable √ Not applicable
There is no investment in derivatives during the reporting period.
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 2019
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 Company Main Registered Operating
Industry Total assets Net assets Turnover Net Profit
Name type business capital profit
Bengang
Puxiang
Processing
Cool Steel rolling 1,920,000,0 5,768,553,0 2,009,690,8 3,720,975,4 10,280,80
Subsidiary and sales of 7,704,734.61
Rolling process 00.00 41.57 96.59 82.91 0.04
steel
Steel Sheet
Co., Ltd.
Acquirement and disposal of subsidiaries during the reporting period
□ Applicable √ Not applicable
Illustration of main joint-stock companies
VIII. Structured Entities controlled by the Company
□ Applicable √ Not applicable
IX. Forecast of operating performance for January to September 2019
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. Macroeconomic risk
Risks: The international situation is complex and volatile, global economic uncertainty still exists, volatility in emerging
markets and developing economies is increasing, international trade protectionism is becoming more and more serious,
and the impact of Sino-US trade war on steel exports will continue. At present, China's economy is still in a critical
period of structural adjustment and transformation and development. The old and new power conversion of economic
growth has not yet been completed, and the risk of economic downturn is still relatively large, posing certain downside
risks and challenges for the steel industry.
Countermeasures: Timely understanding and analysis of relevant national industrial policies and macroeconomic
situation, according to the company's overall strategic planning, innovation-driven development, to meet the diversified
needs of users; comprehensive and advanced corporate benchmarking, find gaps, improve and enhance. Pay close
attention to the relevant policies of the steel industry and changes in the environment of the industry. When there are
major changes, Bengagn Steel will promptly predict the impact of risks and adjust the response measures.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
2. Marketing risk
Risks: Despite the huge achievements in steel production capacity, the steel industry's production capacity structure still
has problems, and the pressure of compliant enterprise capacity release is still too fast. Since 2019, domestic steel
production has maintained growth, the overall destocking rate has slowed down, and the pressure on the supply side has
been continuously enlarged. As a result, the domestic steel market has weakened and the steel price has gradually
shifted. In particular, the state's deep regulation of the downstream real estate market, coupled with the gradual
slowdown in infrastructure investment growth, will be further evident in the second half of the year, and the pattern of
strong supply and demand in the market is difficult to change.
Countermeasures: Pay close attention to the changes in demand for steel products in the domestic market, timely grasp
the fluctuations of domestic fixed asset investment, adjust the business strategy in light of the implementation of
national shutdown and elimination of backward steel production capacity, and the construction and new capacity
production. Strengthen the ability of independent innovation, feedback market information and customer needs to the
R&D, quality, and production departments, improve the quality of products, and enhance the core competitiveness of
the Company.
3. Environmental protection risk
Risks: Environmental emission standards have become stricter, and government regulation and social requirements have
become stronger. Since the implementation of the new "Environmental Protection Law", laws and regulations and
governments at all levels have increasingly demanded environmental protection, and strict enforcement of
environmental protection departments has become the new normal. At the same time, the state's regulatory measures for
environmental governance have become more stringent, and the investment and operating costs of steel companies in
environmental protection will be greatly increased, and environmental protection pressures will continue to increase.
Countermeasures: Pay attention to various national environmental protection policies, improve corporate environmental
protection standards, and make them meet and appropriately exceed national standards. Strengthen the internal
supervision and inspection of the company's various sources of pollution, and strengthen the environmental awareness
of all employees. Accelerate the development of energy-saving and environmental protection technologies, improve
environmental protection and energy-saving efficiency; accelerate the construction progress of identified environmental
protection projects to ensure that national environmental protection requirements are met.
4. Raw fuel cost fluctuation risk
Risks: Due to environmental protection policies, de-capacity and weather, the original fuel supply may be staged
insufficiently and not timely. The price of raw fuels has strengthened overall, especially the price of imported iron ore
has risen sharply, and the profit margin of steel companies has been greatly reduced. The cost of the steel industry has
further increased, which has affected the cost control and operating results of steel companies.
Countermeasures: Make full use of the advantages of own mines, strengthen management of raw fuel demand planning,
procurement planning, procurement implementation, warehousing, maintain information communication, rationally
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
arrange economic inventory; establish stable supply channels, establish and maintain good cooperative relations with
suppliers Strengthen the ability to grasp the upstream raw material market information, strengthen the company's own
sensitivity to the market and its ability to research and judge, and improve its ability to respond to fluctuations in raw
fuel prices.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
V. Important Events
I. Annual General Meeting of Shareholders and Temporary General Meeting of Shareholders
held during the Reporting Period
1. General meeting of shareholders during the reporting period
Investors’
Meeting session Meeting type Date of convening Date of disclosure Disclosure index
participation ratio
The first temporary
Temporary general Announcement No.:
general meeting of 61.37% 2019/03/14 2019/03/15
meeting 2019-008
2019
The annual general Annual general Announcement No.:
61.36% 2019/05/16 2019/05/17
meeting of 2018 meeting 2019-029
The second
Temporary general Announcement No.:
temporary general 61.83% 2019/06/10 2019/06/11
meeting 2019-038
meeting of 2019
2. Temporary general meeting Request by preferred stockholders whose voting rights restore
□ 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
Commitment Type of Commitment Commitment
Commitments Contents Performance
party commitment time period
Commitment of shares
reform
Commitment made in the
acquisition report or the
equity change report
Commitment made during
asset restructuring
Commitment made during Company According to the Jan 26th 2016 Dec 9th 2019
Other Under normal
initial public offering or directors, relevant provisions of
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
refinancing senior commitment the China Securities fulfillment
management Regulatory
Commission, the
following commitments
can be made to the
company’s efforts to fill
the rewards: During the
tenure, faithfully and
diligently perform duties
and safeguards the
legitimate rights and
interests of the company
and all shareholders,
including but not limited
to: 1. Commitment not
to transfer benefits to
other units or
individuals without
compensation or unfair
conditions, and not to
damage the company’s
interests in other ways;
2. Commitment to
constrain the behavior of
job 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 the compensation
system established by
the board of directors or
the Remuneration and
Appraisal Committee is
linked to the
implementation of the
company's measures to
cover the return; 5. If
the company launches
an equity incentive plan
in the future, the terms
of the exercise of the
equity incentive plan are
linked to the
implementation of the
company's measures to
fill the rewards.
The allocated shares will
Liaoning be locked for 12 months 12 months
Provincial from the date of the from the date
Transportation Share sales listing of the new of the listing
Mar 5th 2018 Fulfilled
Investment restriction non-public offering of of the new
Group Co., shares, and will not be non-public
Ltd. transferred during this offering
period.
The allocated shares will
be locked for 12 months 12 months
CCB Principal from the date of the from the date
Asset Share sales listing of the new of the listing
Mar 5th 2018 Fulfilled
Management restriction non-public offering of of the new
Co.,Ltd. shares, and will not be non-public
transferred during this offering
period.
19
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
The allocated shares will
be locked for 12 months 12 months
Beixin from the date of the from the date
Ruifeng Fund Share sales listing of the new of the listing
Mar 5th 2018 Fulfilled
Management restriction non-public offering of of the new
Co., Ltd. shares, and will not be non-public
transferred during this offering
period.
The allocated shares will
be locked for 12 months 12 months
China Life from the date of the from the date
AMP Asset Share sales listing of the new of the listing
Mar 5th 2018 Fulfilled
Management restriction non-public offering of of the new
Co., Ltd. shares, and will not be non-public
transferred during this offering
period.
Stock option incentive
commitment
Other commitments to the
company's minority
shareholders
Whether Commitment
Yes
fulfilled on time or not
IV. Appointment and Dismiss of Certified Accountant’s Firm
Is the semi-annual financial report audited?
□ Yes √ No
The semi-annual report has not been audited.
V. Illustrations of the Board of Directors and Supervisory Committee on the Modified Audit
Report Issued by the CPAs
□ Applicable √ Not applicable
VI. Illustrations of the Board of Directors on the Modified 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 is no Significant lawsuits and arbitrations during the reporting period.
Other Lawsuits and Arbitrations
20
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
□ 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
The
Amount
approve Means
Pricing Price of Whethe Availabl
d of
Type of Content of principle of related Proporti r exceed e
trading paymen Index
related related of relate party on of the market Date of
Related Relation limit of t of of
party party related d transacti similar approve price of disclosu
parties ship transacti related disclos
transacti transactio party party ons (in transacti d similar re
ons (in party ure
ons ns transacti transa 10 ons limited transacti
10 transacti
ons ctions thousan (Y/N) ons
thousan ons
d)
d)
Execute
Benxi Purchas Relate
accordi
Steel & Parent e of Accounts On d
14,299. ng to
Iron Compan goods payable agreeme agree 0.59% 50,000 No
69 the
(Group) y and for repair nt ment
agreeme 2019/4/
Co., Ltd. services price
nt No 19
Execute
Benxi Purchas Relate 0
accordi
Steel & Parent e of On d .
Land 2,734.5 ng to
Iron Compan goods agreeme agree 1 No
lease fee 7 the
(Group) y and nt ment 1
agreeme 2019/4/
Co., Ltd. services price %
nt No 19
Bengang
Execute
Cold-rolle Purchas Relate
accordi
d Same e of On d
ng to
Stainless controll goods Products agreeme agree 82.25 0.00% 1,000 No
the
Steel er and nt ment
agreeme
Dandong services price 2019/4/
nt
Co., Ltd. Yes 19
Benxi Same Purchas On Relate Execute
Steel & controll e of Labor cost agreeme d 391.41 0.02% No accordi
Iron goods agree ng to 2019/4/
er nt No 19
(Group) and ment the
21
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
The
Amount
approve Means
Pricing Price of Whethe Availabl
d of
Type of Content of principle of related Proporti r exceed e
trading paymen Index
related related of relate party on of the market Date of
Related Relation limit of t of of
party party related d transacti similar approve price of disclosu
parties ship transacti related disclos
transacti transactio party party ons (in transacti d similar re
ons (in party ure
ons ns transacti transa 10 ons limited transacti
10 transacti
ons ctions thousan (Y/N) ons
thousan ons
d)
d)
Mining services price agreeme
Co., Ltd. nt
Benxi Raw Execute
Purchas Relate
Steel & material accordi
Same e of On d
Iron and 215,655 ng to
controll goods agreeme agree 8.95% 500,000 No
(Group) suppleme .53 the
er and nt ment
Mining ntary agreeme 2019/4/
services price
Co., Ltd. material nt Yes 19
Benxi Execute
Purchas Relate
Steel & accordi
Same e of On d
Iron ng to
controll goods Freight agreeme agree 85.36 0.00% No
(Group) the
er and nt ment
Mining agreeme 2019/4/
services price
Co., Ltd. nt Yes 19
Benxi
Steel & Raw Execute
Purchas Relate
Iron material accordi
Same e of On d
(Group) and 11,056. ng to
controll goods agreeme agree 0.46% 30,000 No
Metallurg suppleme 03 the
er and nt ment
y ntary agreeme
services price
Residues material nt 2019/4/
Co., Ltd. No 19
Benxi
Steel &
Iron Execute
Purchas Relate
(Group) accordi
Same e of On d
Steel & Processin ng to
controll goods agreeme agree 84.61 0.00% 300 No
Iron g fee the
er and nt ment
Process agreeme
services price
and nt
Logistics 2019/4/
Co., Ltd. No 19
Benxi
Steel &
Execute
Iron Purchas Relate
accordi
(Group) Same e of On d
Raw 3,418.0 ng to
Real-estat controll goods agreeme agree 0.14% 10,000 No
materials 4 the
e er and nt ment
agreeme
Develop services price
nt
ment Co., 2019/4/
Ltd. Yes 19
Benxi
Steel &
Execute
Iron Purchas Relate
accordi
(Group) Same e of On d
Spare 3,341.8 ng to
Machiner controll goods agreeme agree 0.14% 25,000 No
parts 5 the
y er and nt ment
agreeme
Manufact services price
nt
ure Co., 2019/4/
Ltd. Yes 19
Benxi Same Purchas Repair On Relate Execute
Steel & controll e of agreeme d 370.37 0.02% No accordi 2019/4/
services
Iron er goods nt agree ng to No 19
22
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
The
Amount
approve Means
Pricing Price of Whethe Availabl
d of
Type of Content of principle of related Proporti r exceed e
trading paymen Index
related related of relate party on of the market Date of
Related Relation limit of t of of
party party related d transacti similar approve price of disclosu
parties ship transacti related disclos
transacti transactio party party ons (in transacti d similar re
ons (in party ure
ons ns transacti transa 10 ons limited transacti
10 transacti
ons ctions thousan (Y/N) ons
thousan ons
d)
d)
(Group) and ment the
Machiner services price agreeme
y nt
Manufact
ure Co.,
Ltd.
Benxi
Execute
Steel & Purchas Relate
accordi
Iron Same e of On d
Spare ng to
(Group) controll goods agreeme agree 424.68 0.02% No
parts the
Construct er and nt ment
agreeme
ion Co., services price 2019/4/
nt
Ltd. No 19
Benxi
Execute
Steel & Purchas Relate
accordi
Iron Same e of On d
Project 7,123.7 ng to
(Group) controll goods agreeme agree 0.30% 50,000 No
fee 5 the
Construct er and nt ment
agreeme
ion Co., services price 2019/4/
nt
Ltd. No 19
Benxi
Execute
Steel & Purchas Relate
accordi
Iron Same e of On d
Repair 7,085.6 ng to
(Group) controll goods agreeme agree 0.29% No
services 5 the
Construct er and nt ment
agreeme
ion Co., services price 2019/4/
nt
Ltd. No 19
Benxi
Raw Execute
Steel & Purchas Relate
material accordi
Iron Same e of On d
and ng to
(Group) controll goods agreeme agree 332.06 0.01% No
suppleme the
Construct er and nt ment
ntary agreeme
ion Co., services price 2019/4/
material nt
Ltd. Yes 19
Benxi
Execute
Steel & Purchas Relate
accordi
Iron Same e of On d
ng to
(Group) controll goods Freight agreeme agree 152.48 0.01% No
the
Construct er and nt ment
agreeme
ion Co., services price 2019/4/
nt
Ltd. No 19
Benxi
Steel & Execute
Purchas Relate
Iron accordi
Same e of On d
(Group) Spare 2,896.0 ng to
controll goods agreeme agree 0.12% No
Industrial parts 2 the
er and nt ment
Develop agreeme
services price
ment Co., nt 2019/4/
Ltd. No 19
Benxi Same Purchas Raw On Relate Execute
Steel & 6,106.8
controll e of material agreeme d 0.25% 30,000 No accordi
2019/4/
Iron goods and agree 1 ng to
er nt Yes 19
(Group) and suppleme ment the
23
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
The
Amount
approve Means
Pricing Price of Whethe Availabl
d of
Type of Content of principle of related Proporti r exceed e
trading paymen Index
related related of relate party on of the market Date of
Related Relation limit of t of of
party party related d transacti similar approve price of disclosu
parties ship transacti related disclos
transacti transactio party party ons (in transacti d similar re
ons (in party ure
ons ns transacti transa 10 ons limited transacti
10 transacti
ons ctions thousan (Y/N) ons
thousan ons
d)
d)
Industrial services ntary price agreeme
Develop material nt
ment Co.,
Ltd.
Benxi
Steel & Execute
Purchas Relate
Iron accordi
Same e of On d
(Group) Repair ng to
controll goods agreeme agree 940.92 0.04% No
Industrial services the
er and nt ment
Develop agreeme
services price
ment Co., nt 2019/4/
Ltd. No 19
Benxi
Steel & Execute
Purchas Relate
Iron accordi
Same e of On d
(Group) ng to
controll goods Freight agreeme agree 349.19 0.01% No
Industrial the
er and nt ment
Develop agreeme
services price
ment Co., nt 2019/4/
Ltd. Yes 19
Benxi
Steel & Execute
Purchas Relate
Iron accordi
Same e of On d
(Group) Project ng to
controll goods agreeme agree 15.8 0.00% No
Industrial fee the
er and nt ment
Develop agreeme
services price
ment Co., nt 2019/4/
Ltd. No 19
Benxi Raw
Steel & material Execute
Purchas Relate
Iron & accordi
Same e of On d
(Group) suppleme ng to
controll goods agreeme agree 88.6 0.00% No
Construct ntary the
er and nt ment
ion and materials agreeme
services price
Repairing & spare nt 2019/4/
Co., Ltd. parts Yes 19
Benxi
Steel & Execute
Purchas Relate
Iron accordi
Same e of On d
(Group) Project ng to
controll goods agreeme agree 453.18 0.02% No
Construct fee the
er and nt ment
ion and agreeme
services price
Repairing nt 2019/4/
Co., Ltd. No 19
Benxi
Steel & Execute
Purchas Relate
Iron accordi
Same e of Accounts On d
(Group) 5,520.7 ng to
controll goods payable agreeme agree 0.23% 28,000 No
Construct 7 the
er and for repair nt ment
ion and agreeme
services price
Repairing nt 2019/4/
Co., Ltd. No 19
Bengang Same Purchas Raw On Relate 5,873.3 0.24% 20,000 No Execute Yes 2019/4/
24
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
The
Amount
approve Means
Pricing Price of Whethe Availabl
d of
Type of Content of principle of related Proporti r exceed e
trading paymen Index
related related of relate party on of the market Date of
Related Relation limit of t of of
party party related d transacti similar approve price of disclosu
parties ship transacti related disclos
transacti transactio party party ons (in transacti d similar re
ons (in party ure
ons ns transacti transa 10 ons limited transacti
10 transacti
ons ctions thousan (Y/N) ons
thousan ons
d)
d)
Electronic controll e of material agreeme d 6 accordi 19
s and Gas er goods and nt agree ng to
Co., Ltd. and suppleme ment the
services ntary price agreeme
material nt
Execute
Purchas Relate
Bengang accordi
Same e of On d
Electronic Repair ng to
controll goods agreeme agree 252.09 0.01% No
s and Gas services the
er and nt ment
Co., Ltd. agreeme 2019/4/
services price
nt No 19
Benxi
Execute
High-tech Purchas Relate
accordi
Drilling Same e of On d
Spare ng to
Tools controll goods agreeme agree 4.47 0.00% 500 No
parts the
Manufact er and nt ment
agreeme
ure Co., services price 2019/4/
nt
Ltd. Yes 19
Benxi Execute
Purchas Relate
New accordi
Same e of Labour On d
Career ng to
controll goods protection agreeme agree 47.2 0.00% 1,200 No
Develop the
er and fee nt ment
ment Co., agreeme 2019/4/
services price
Ltd. nt Yes 19
Raw
Benxi Execute
Purchas material Relate
New accordi
Same e of and On d
Career ng to
controll goods suppleme agreeme agree 48.42 0.00% No
Develop the
er and ntary nt ment
ment Co., agreeme
services material price 2019/4/
Ltd. nt
and food Yes 19
Execute
Liaoning Purchas Relate
accordi
Metallurg Same e of On d
Spare ng to
y controll goods agreeme agree 699.54 0.03% 1,500 No
parts the
Technicia er and nt ment
agreeme 2019/4/
n College services price
nt Yes 19
Bengang
Group Execute
Purchas Relate
Internatio accordi
Same e of On d
nal Agency 3,417.4 ng to
controll goods agreeme agree 0.14% No
Economic fee 6 the
er and nt ment
and agreeme
services price
Trading nt 2019/4/
Co., Ltd. Yes 19
Bengang
Group Execute
Purchas Relate
Internatio accordi
Same e of On d
nal Port 5,240.5 ng to
controll goods agreeme agree 0.22% 25,000 No
Economic surcharges 8 the
er and nt ment
and agreeme
services price
Trading nt 2019/4/
Co., Ltd. No 19
25
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
The
Amount
approve Means
Pricing Price of Whethe Availabl
d of
Type of Content of principle of related Proporti r exceed e
trading paymen Index
related related of relate party on of the market Date of
Related Relation limit of t of of
party party related d transacti similar approve price of disclosu
parties ship transacti related disclos
transacti transactio party party ons (in transacti d similar re
ons (in party ure
ons ns transacti transa 10 ons limited transacti
10 transacti
ons ctions thousan (Y/N) ons
thousan ons
d)
d)
Benxi
Steel &
Execute
Iron Purchas Relate
accordi
(Group) Same e of On d
Spare ng to
Informati controll goods agreeme agree 226.21 0.01% No
parts the
on and er and nt ment
agreeme
Automati services price
nt
c Tech 2019/4/
Co., Ltd. Yes 19
Benxi
Steel &
Execute
Iron Purchas Relate
accordi
(Group) Same e of On d
Project 2,191.4 ng to
Informati controll goods agreeme agree 0.09% 10,000 No
fee 5 the
on and er and nt ment
agreeme
Automati services price
nt
c Tech 2019/4/
Co., Ltd. No 19
Benxi
Steel &
Execute
Iron Purchas Relate
accordi
(Group) Same e of On d
Heating ng to
Thermal controll goods agreeme agree 27.2 0.00% 500 No
costs the
Power er and nt ment
agreeme
Develop services price
nt
ment Co., 2019/4/
Ltd. No 19
Benxi
Steel &
Raw Execute
Iron Purchas Relate
material accordi
(Group) Same e of On d
and ng to
Thermal controll goods agreeme agree 2.84 0.00% No
suppleme the
Power er and nt ment
ntary agreeme
Develop services price
material nt
ment Co., 2019/4/
Ltd. Yes 19
Benxi Execute
Purchas Relate
Steel & accordi
Same e of On d
Iron Design ng to
controll goods agreeme agree 29.24 0.00% 1,000 No
(Group) fees the
er and nt ment
Designing agreeme 2019/4/
services price
Institute nt No 19
Benxi Raw Execute
Purchas Relate
Beiying material accordi
Same e of On d
Steel & and 591,426 1,800,0 ng to
controll goods agreeme agree 24.54% No
Iron suppleme .43 00 the
er and nt ment
(Group) ntary agreeme 2019/4/
services price
Co., Ltd. material nt No 19
Benxi Purchas Relate Execute
Beiying Same e of On d accordi
Energy & 31,906.
Steel & controll goods agreeme agree 1.32% No ng to
Power 75
Iron er and nt ment the 2019/4/
(Group) services price agreeme No 19
26
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
The
Amount
approve Means
Pricing Price of Whethe Availabl
d of
Type of Content of principle of related Proporti r exceed e
trading paymen Index
related related of relate party on of the market Date of
Related Relation limit of t of of
party party related d transacti similar approve price of disclosu
parties ship transacti related disclos
transacti transactio party party ons (in transacti d similar re
ons (in party ure
ons ns transacti transa 10 ons limited transacti
10 transacti
ons ctions thousan (Y/N) ons
thousan ons
d)
d)
Co., Ltd. nt
Benxi Execute
Purchas Relate
Beiying accordi
Same e of On d
Steel & ng to
controll goods Freight agreeme agree 234.47 0.01% No
Iron the
er and nt ment
(Group) agreeme 2019/4/
services price
Co., Ltd. nt No 19
Benxi Execute
Purchas Relate
Beiying accordi
Same e of On d
Steel & 4,250.1 ng to
controll goods Labor cost agreeme agree 0.18% No
Iron 8 the
er and nt ment
(Group) agreeme 2019/4/
services price
Co., Ltd. nt No 19
Benxi Execute
Purchas Relate
Beiying accordi
Same e of On d
Steel & Spare ng to
controll goods agreeme agree 758.28 0.03% No
Iron parts the
er and nt ment
(Group) agreeme 2019/4/
services price
Co., Ltd. nt Yes 19
Liaoning
Hengtong
Execute
Metallurg Purchas Relate
Raw accordi
ical Same e of On d
material 4,493.4 ng to
Equipmen controll goods agreeme agree 0.19% 15,000 No
and spare 6 the
t er and nt ment
parts agreeme
Manufact services price
nt
ure Co., 2019/4/
Ltd. Yes 19
Liaoning Execute
Purchas Relate
Hengtai Raw accordi
Same e of On d
Heavy material ng to
controll goods agreeme agree 171.84 0.01% No
Machiner and spare the
er and nt ment
y Co., parts agreeme 2019/4/
services price
Ltd. nt Yes 19
Liaoning Execute
Purchas Relate
Hengtai accordi
Same e of Repair On d
Heavy 1,133.1 ng to
controll goods and labor agreeme agree 0.05% 8,000 No
Machiner 3 the
er and cost nt ment
y Co., agreeme 2019/4/
services price
Ltd. nt No 19
Execute
Purchas Relate
accordi
Bengang e of House On d
Controll ng to
Group goods renting agreeme agree 37.61 0.00% No
er the
Co., Ltd. and fee nt ment
agreeme 2019/4/
services price
nt Yes 19
Execute
Purchas Relate
accordi
Bengang e of Property On d
Controll ng to
Group goods managem agreeme agree 0.00% 1,000 No
er the
Co., Ltd. and ent fee nt ment
agreeme 2019/4/
services price
nt No 19
27
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
The
Amount
approve Means
Pricing Price of Whethe Availabl
d of
Type of Content of principle of related Proporti r exceed e
trading paymen Index
related related of relate party on of the market Date of
Related Relation limit of t of of
party party related d transacti similar approve price of disclosu
parties ship transacti related disclos
transacti transactio party party ons (in transacti d similar re
ons (in party ure
ons ns transacti transa 10 ons limited transacti
10 transacti
ons ctions thousan (Y/N) ons
thousan ons
d)
d)
Execute
Relate
Bengang Sales of accordi
Same On d
Electronic goods Energy & ng to
controll agreeme agree 50.42 0.00% 500 No
s and Gas and Power the
er nt ment
Co., Ltd. services agreeme 2019/4/
price
nt No 19
Raw
Benxi material Execute
Relate
Beiying Sales of & accordi
Same On d
Steel & goods suppleme 60,230. ng to
controll agreeme agree 2.73% 300,000 No
Iron and ntary 78 the
er nt ment
(Group) services materials agreeme
price
Co., Ltd. & spare nt 2019/4/
parts Yes 19
Benxi Execute
Relate
Beiying Sales of accordi
Same On d
Steel & goods ng to
controll Products agreeme agree 792.19 0.04% No
Iron and the
er nt ment
(Group) services agreeme 2019/4/
price
Co., Ltd. nt Yes 19
Benxi Execute
Relate
Beiying Sales of accordi
Same On d
Steel & goods Energy & 7,565.3 ng to
controll agreeme agree 0.34% No
Iron and Power 9 the
er nt ment
(Group) services agreeme 2019/4/
price
Co., Ltd. nt No 19
Benxi
Steel &
Execute
Iron Relate
Sales of accordi
(Group) Same On d
goods Energy & ng to
Real-estat controll agreeme agree 6.2 0.00% 500 No
and Power the
e er nt ment
services agreeme
Develop price
nt
ment Co., 2019/4/
Ltd. No 19
Benxi
Steel &
Iron Execute
Relate
(Group) Sales of accordi
Same On d
Steel & goods Energy & ng to
controll agreeme agree 27.47 0.00% 500 No
Iron and Power the
er nt ment
Process services agreeme
price
and nt
Logistics 2019/4/
Co., Ltd. No 19
Benxi
Steel & Execute
Relate
Iron Sales of accordi
Same On d
(Group) controll goods ng to
Products agreeme agree 995.77 0.05% 8,000 No
Machiner er and the
nt ment
y services agreeme
price 2019/4/
Manufact nt
ure Co., Yes 19
28
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
The
Amount
approve Means
Pricing Price of Whethe Availabl
d of
Type of Content of principle of related Proporti r exceed e
trading paymen Index
related related of relate party on of the market Date of
Related Relation limit of t of of
party party related d transacti similar approve price of disclosu
parties ship transacti related disclos
transacti transactio party party ons (in transacti d similar re
ons (in party ure
ons ns transacti transa 10 ons limited transacti
10 transacti
ons ctions thousan (Y/N) ons
thousan ons
d)
d)
Ltd.
Benxi
Steel &
Execute
Iron Relate
Sales of accordi
(Group) Same On d
goods Energy & ng to
Machiner controll agreeme agree 716.43 0.03% No
and Power the
y er nt ment
services agreeme
Manufact price
nt
ure Co., 2019/4/
Ltd. No 19
Benxi
Raw
Steel &
material Execute
Iron Relate
Sales of & accordi
(Group) Same On d
goods suppleme ng to
Machiner controll agreeme agree 605.66 0.03% No
and ntary the
y er nt ment
services materials agreeme
Manufact price
& spare nt
ure Co., 2019/4/
parts
Ltd. Yes 19
Benxi
Execute
Steel & Relate
Sales of accordi
Iron Same On d
goods Energy & ng to
(Group) controll agreeme agree 19.45 0.00% 10,000 No
and Power the
Construct er nt ment
services agreeme
ion Co., price 2019/4/
nt
Ltd. No 19
Raw
Benxi
material Execute
Steel & Relate
Sales of & accordi
Iron Same On d
goods suppleme ng to
(Group) controll agreeme agree 108.13 0.00% No
and ntary the
Construct er nt ment
services materials agreeme
ion Co., price
& spare nt 2019/4/
Ltd.
parts Yes 19
Benxi Execute
Relate
Steel & Sales of accordi
Same On d
Iron goods Energy & 34,182. ng to
controll agreeme agree 1.55% 100,000 No
(Group) and Power 02 the
er nt ment
Mining services agreeme 2019/4/
price
Co., Ltd. nt No 19
Raw
Benxi material Execute
Relate
Steel & Sales of & accordi
Same On d
Iron goods suppleme 3,156.2 ng to
controll agreeme agree 0.14% No
(Group) and ntary 6 the
er nt ment
Mining services materials agreeme
price
Co., Ltd. & spare nt 2019/4/
parts Yes 19
Benxi Relate Execute
Sales of
Steel & Same On d accordi
goods Freight
Iron controll agreeme agree 487.08 0.02% No ng to
and revenue
(Group) er nt ment the 2019/4/
services
Mining price agreeme No 19
29
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
The
Amount
approve Means
Pricing Price of Whethe Availabl
d of
Type of Content of principle of related Proporti r exceed e
trading paymen Index
related related of relate party on of the market Date of
Related Relation limit of t of of
party party related d transacti similar approve price of disclosu
parties ship transacti related disclos
transacti transactio party party ons (in transacti d similar re
ons (in party ure
ons ns transacti transa 10 ons limited transacti
10 transacti
ons ctions thousan (Y/N) ons
thousan ons
d)
d)
Co., Ltd. nt
Benxi
Steel &
Execute
Iron Relate
Sales of accordi
(Group) Same On d
goods Energy & 2,289.9 ng to
Thermal controll agreeme agree 0.10% 8,000 No
and Power 9 the
Power er nt ment
services agreeme
Develop price
nt
ment Co., 2019/4/
Ltd. No 19
Benxi
Raw
Steel &
material Execute
Iron Relate
Sales of & accordi
(Group) Same On d
goods suppleme ng to
Thermal controll agreeme agree 994.94 0.05% No
and ntary the
Power er nt ment
services materials agreeme
Develop price
& spare nt
ment Co., 2019/4/
parts
Ltd. Yes 19
Benxi
Steel &
Execute
Iron Relate
Sales of accordi
(Group) Same On d
goods Freight ng to
Thermal controll agreeme agree 0.00% No
and revenue the
Power er nt ment
services agreeme
Develop price
nt
ment Co., 2019/4/
Ltd. No 19
Benxi
Steel & Execute
Relate
Iron Sales of accordi
Same On d
(Group) goods Energy & ng to
controll agreeme agree 407.66 0.02% 5,000 No
Industrial and Power the
er nt ment
Develop services agreeme
price
ment Co., nt 2019/4/
Ltd. No 19
Benxi
Steel & Execute
Relate
Iron Sales of accordi
Same On d
(Group) goods ng to
controll Products agreeme agree 12.46 0.00% No
Industrial and the
er nt ment
Develop services agreeme
price
ment Co., nt 2019/4/
Ltd. Yes 19
Benxi Raw
Steel & material Execute
Relate
Iron Sales of & accordi
Same On d
(Group) goods suppleme ng to
controll agreeme agree 717.36 0.03% No
Industrial and ntary the
er nt ment
Develop services materials agreeme
price
ment Co., & spare nt 2019/4/
Ltd. parts Yes 19
Benxi Same Sales of Energy & On Relate 7.68 0.00% 300 No Execute No 2019/4/
30
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
The
Amount
approve Means
Pricing Price of Whethe Availabl
d of
Type of Content of principle of related Proporti r exceed e
trading paymen Index
related related of relate party on of the market Date of
Related Relation limit of t of of
party party related d transacti similar approve price of disclosu
parties ship transacti related disclos
transacti transactio party party ons (in transacti d similar re
ons (in party ure
ons ns transacti transa 10 ons limited transacti
10 transacti
ons ctions thousan (Y/N) ons
thousan ons
d)
d)
Steel & controll goods Power agreeme d accordi 19
Iron er and nt agree ng to
(Group) services ment the
Informati price agreeme
on and nt
Automati
c Tech
Co., Ltd.
Benxi
Steel & Execute
Relate
Iron Sales of accordi
Same On d
(Group) goods Energy & ng to
controll agreeme agree 79.48 0.00% 8,000 No
Construct and Power the
er nt ment
ion and services agreeme
price
Repairing nt 2019/4/
Co., Ltd. No 19
Benxi Raw
Steel & material Execute
Relate
Iron Sales of & accordi
Same On d
(Group) goods suppleme ng to
controll agreeme agree 248.68 0.01% No
Construct and ntary the
er nt ment
ion and services materials agreeme
price
Repairing & spare nt 2019/4/
Co., Ltd. parts Yes 19
Benxi
Steel & Execute
Relate
Iron Sales of accordi
Same On d
(Group) goods Energy & ng to
controll agreeme agree 302.41 0.01% No
Metallurg and Power the
er nt ment
y services agreeme
price
Residues nt 2019/4/
Co., Ltd. No 19
Benxi Raw
Steel & material Execute
Relate
Iron Sales of & accordi
Same On d
(Group) goods suppleme 9,363.7 ng to
controll agreeme agree 0.42% No
Metallurg and ntary 9 the
er nt ment
y services materials agreeme
price
Residues & spare nt 2019/4/
Co., Ltd. parts Yes 19
Benxi
Steel & Execute
Relate
Iron Sales of accordi
Same On d
(Group) goods Freight ng to
controll agreeme agree 0.00% 30,000 No
Metallurg and revenue the
er nt ment
y services agreeme
price
Residues nt 2019/4/
Co., Ltd. No 19
Benxi Relate Execute
Sales of
Steel & Parent On d accordi
goods Energy &
Iron Compan agreeme agree 147.07 0.01% No ng to
and Power
(Group) y nt ment the 2019/4/
services
Co., Ltd. price agreeme No 19
31
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
The
Amount
approve Means
Pricing Price of Whethe Availabl
d of
Type of Content of principle of related Proporti r exceed e
trading paymen Index
related related of relate party on of the market Date of
Related Relation limit of t of of
party party related d transacti similar approve price of disclosu
parties ship transacti related disclos
transacti transactio party party ons (in transacti d similar re
ons (in party ure
ons ns transacti transa 10 ons limited transacti
10 transacti
ons ctions thousan (Y/N) ons
thousan ons
d)
d)
nt
Raw
material Execute
Benxi Relate
Sales of & accordi
Steel & Parent On d
goods suppleme ng to
Iron Compan agreeme agree 156.1 0.01% 1,000 No
and ntary the
(Group) y nt ment
services materials agreeme
Co., Ltd. price
& spare nt 2019/4/
parts Yes 19
Benxi Execute
Relate
New Sales of accordi
Same On d
Career goods Energy & ng to
controll agreeme agree 15.13 0.00% 500 No
Develop and Power the
er nt ment
ment Co., services agreeme 2019/4/
price
Ltd. nt No 19
Execute
Dalian Relate
Sales of accordi
Boluole Same On d
goods ng to
Steel controll Products agreeme agree 188.32 0.01% 1,000 No
and the
Tube Co., er nt ment
services agreeme 2019/4/
Ltd. price
nt Yes 19
Benxi Execute
Relate
Steel & Sales of accordi
Same On d
Iron goods Energy & ng to
controll agreeme agree 3.09 0.00% 50 No
(Group) and Power the
er nt ment
General services agreeme 2019/4/
price
Hospital nt No 19
Benxi
Steel &
Execute
Iron Relate
Sales of accordi
(Group) Same On d
goods Energy & ng to
Zhengtai controll agreeme agree 0.27 0.00% 500 No
and Power the
Construct er nt ment
services agreeme
ion price
nt
Materials 2019/4/
Co., Ltd. No 19
Liaoning
Hengtong
Execute
Metallurg Relate
Sales of accordi
ical Same On d
goods Energy & ng to
Equipmen controll agreeme agree 832.61 0.04% 5,000 No
and Power the
t er nt ment
services agreeme
Manufact price
nt
ure Co., 2019/4/
Ltd. Yes 19
Raw
Bengang
material Execute
Cold-rolle Relate
Sales of & accordi
d Same On d
goods suppleme ng to
Stainless controll agreeme agree 24.14 0.00% No
and ntary the
Steel er nt ment
services materials agreeme
Dandong price
& spare nt 2019/4/
Co., Ltd.
parts Yes 19
32
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
The
Amount
approve Means
Pricing Price of Whethe Availabl
d of
Type of Content of principle of related Proporti r exceed e
trading paymen Index
related related of relate party on of the market Date of
Related Relation limit of t of of
party party related d transacti similar approve price of disclosu
parties ship transacti related disclos
transacti transactio party party ons (in transacti d similar re
ons (in party ure
ons ns transacti transa 10 ons limited transacti
10 transacti
ons ctions thousan (Y/N) ons
thousan ons
d)
d)
Execute
Relate
Suzhou Sales of accordi
Same On d
Bengang goods 16,362. ng to
controll Products agreeme agree 0.74% 50,000 No
Industrial and 43 the
er nt ment
Co., Ltd. services agreeme 2019/4/
price
nt Yes 19
Execute
Relate
Bengang Sales of accordi
Same On d
Group goods Energy & ng to
controll agreeme agree 0.69 0.00% 50 No
Finance and Power the
er nt ment
Co., Ltd. services agreeme 2019/4/
price
nt No 19
Execute
Relate
Sales of accordi
Bengang On d
Controll goods Energy & ng to
Group agreeme agree 7.79 0.00% 500 No
er and Power the
Co., Ltd. nt ment
services agreeme 2019/4/
price
nt No 19
1,076,5 3,137,4
Total -- -- -- -- -- -- -- --
87.17 00
Details of any sales return of a large
N/A
amount
Give the actual situation during the
reporting period where a forecast had
been made for the total amounts of N/A
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 N/A
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
There were no related credits and debts during the reporting period.
33
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
5. Other significant related transactions
□ Applicable √ Not applicable
There was no other significant related transaction during the reporting period.
XIII. Non-operating capital occupation of listed companies by controlling shareholders and
their related parties
□ Applicable √ Not applicable
There was no non-operating capital occupation of listed companies by controlling shareholders and their related parties
during the reporting period.
XIV. Major Contracting
1. Trusteeship, contracting, and leasing matters
(1) Trusteeship
□ Applicable √ Not applicable
There was no trusteeship during the reporting period.
(2) Contracting
□ Applicable √ Not applicable
There was no contracting during the reporting period.
(3) Lease
□ Applicable √ Not applicable
There was no lease during the reporting period.
2. Major 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. Environmental protection-related conditions
Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the
environmental protection department.
Yes
34
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Main The
The number Emission The Approved Surpass the
pollutants Discharge distribution Total
Name of discharge concentratio emission total emission
and specific modes of discharge emission
hatch n standard emission standard
pollutants hatch
Energy
integral
Bengang Unapproved
factory Sewage
Steel Plates COD Continuous 1 Sewage 50 120.52 tons by the None
sewage 22-26
Co., Ltd. government
treatment
plant.
Energy
integral
Bengang Unapproved
factory
Steel Plates NH3-N Continuous 1 Sewage 3-5 Sewage 5 19.97 tons by the None
sewage
Co., Ltd. government
treatment
plant.
Raw
material
dumper,
transfer
station,
mine pit,
pre-mixing;
ironmaking
iron and
steel field,
furnace top,
fuel,
solvent,
whole grain,
ore coke
tank,
sintering
head, tail; Raw Raw
steelmaking materials materials
water 7-20;
25;
pretreatmen Ironmaking ironmaking
t, iron alloy 5-48; 25-50;
feeding , Steelmaking
steelmaking
Bengang Continuous North-South 7-14; 6373.76 Unapproved
Particulate 20-50;
Steel Plates and 178 inverted Special by the None
Matter special steel tons
Co., Ltd. intermittent irrigation steel 7-15; government
20; power
stations, Power
generation
primary generation
10-30; cold
dust 5-10; Cold
rolling 20;
removal, rolling;
hot rolling
secondary 6-18; hot 20.
dust rolling 6-15.
removal,
refining and
dust
removal;
special steel
furnace,
refining
furnace,
electro slag
furnace;
desulfurizati
on and
denitrificati
on of power
generation
boilers;
cold-rolled
35
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
acid
regeneration
, pickling,
tensioning,
welding,
leveling,
Annealing,
baking; hot
rolling
furnace.
Ironmaking Sintering Unapproved None
sintering machine Sintering by the
head; power head 12-40; head 200; government
generation power power
Bengang Continuous
boiler; cold generation generation 3033.86
Steel Plates SO and 64
rolling 10-70; cold 100-200; tons
Co., Ltd. intermittent
roasting, rolling cold rolling
annealing; 80-74-141; 150; hot
hot rolling hot rolling rolling 150.
furnace. 95-147.
Ironmaking Unapproved None
Sintering
sintering by the
head Sintering
head; power government
110-230; head 300;
generation
power power
Bengang Continuous boiler; cold
Oxides of generation generation 6181.68
Steel Plates and 57 rolling
nitrogen 50-140; 100-200; tons
Co., Ltd. intermittent roasting,
cold rolling cold rolling
annealing;
69-172; hot 300; hot
hot rolling
rolling rolling 300.
furnace.
105-124.
furnace.
Construction and operation of pollution prevention facility:
The company has a total of 178 sets of environmental pollution prevention and control facilities. In addition to the hot
rolling mill 2300 production line, the rough-rolling finishing rolling plastic plate dust collector which is designed for the
production of stainless steel, the rest of the facilities are put into use normally.
Environmental Impact Assessment and Other Environmental Protection Administrative Licensing of Construction
Projects:
Bengang Steel Plate Co., Ltd. acquired the environmental impact assessment (EIA) approval of the high-grade
high-magnetic non-oriented silicon steel project (Ben-Huan-Jian-Biao-Zi [2019] No. 03, May 25, 2019);
The steel factory’s No.8 casting machine project of the Company acquired the EIA approval (Ben-Huan-Jian-Biao-Zi
[2019] No. 04);
The environmental assessment of the registration of 4-6th converter of the steel factory was completed and the EIA
registration form was filed (record number: 201921050200000031).
36
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Emergency plan for emergency environmental incidents:
The company and its subordinate 13 units are revised the emergency plans for emergency environmental incidents, and
carried out related work such as risk assessment and investigation of emergency resources in accordance with the "Law
of the People's Republic of China on Incident Responses", "Notice on Printing and Distributing the Guidelines for Risk
Assessment of Enterprises' Environmental Emergencies (Trial)", and "Emergency Preparedness for Environmental
Incidents of Enterprises and Institutions" Existing laws and regulations such as the Administrative Measures (Trial). At
the same time, all units will formulate drill plans and gradually carry out emergency plan drills according to the
pre-planned situation.
Environmental self-monitoring project.
In 2019, the self-monitoring plan was carried out in accordance with the requirements of the pollutant discharge permit.
The monitoring points of Benxi Steel pollution sources: 172 flue gas, 10 wastewater monitoring points, 5 noise points at
the boundary of the plant, 27 atmospheric dustfall points, and newly added unorganized monitoring. The number of
points is 60. From the plate factory to the mine, the monitoring is divided into weekly, monthly, seasonal, semi-annual
and annual frequency monitoring. The main monitoring items of the automatic air quality monitoring station are PM10,
PM2.5, sulfur dioxide and nitrogen dioxide. , O3, CO, one set of data per hour, a total of 26000 monitoring data were
obtained throughout the half of the year; 27 steel dust points were distributed in the steel plant area, and 162 monitoring
data were obtained; routine monitoring tasks for flue gas were completed, and monitoring was achieved throughout the
year. 476 data; 5 noise monitoring points at the boundary of the plant, 80 monitoring data; 10 wastewater monitoring
points, 1838 monitoring data; 150 temporary monitoring data, and a total of 2706 monitoring data reported by the
monitoring station. Monthly, quarterly reports and separate monitoring reports for each mine are reported.
Other environmental information that should be disclosed:
None
Other environmental protection related information:
None
2. Performing corporation social responsibility of targeted poverty alleviation
During the current reporting period, there has been no accurate poverty alleviation work, and there is no follow-up
accurate poverty alleviation plan.
XVI. Other Major Issues
□ Applicable √ Not applicable
There was no need for illustrating other major issue.
37
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
XVII. Major Issues of Subsidiaries
□ Applicable √ Not applicable
38
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
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
Capitaliz
Issuing ation of
Percenta Bonus Percenta
Quantity of new common Others Subtotal Quantity
ge shares ge
share reserve
fund
I. Restricted Shares 739,371,532 19.08% -739,371,532 -739,371,532 0
2. State-own
Legal-person 184,842,883 4.77% -184,842,883 -184,842,883 0
Shareholding
3. Other domestic
554,528,649 14.31% -554,528,649 -554,528,649 0
shareholdings
Including:
Domestic legal
554,528,649 14.31% -554,528,649 -554,528,649 0
person holding
II. Non-restricted
3,136,000,000 80.92% 739,371,532 739,371,532 3,875,371,532 100.00%
Shares
1. Common shares
2,736,000,000 70.60% 739,371,532 739,371,532 3,475,371,532 89.68%
in RMB
2. Foreign shares in
400,000,000 10.32% 400,000,000 10.32%
domestic market
III. Total shares 3,875,371,532 100.00% 3,875,371,532 100.00%
Causation of share capital changes
√Applicable □Not applicable
The company has a non-public offering of 739,371,532 RMB ordinary shares to Liaoning Provincial Transportation
Investment Group Co., Ltd., CCB Principal Asset Management Co., Ltd., Beixin Ruifeng Fund Management Co., Ltd.
and China Life AMP Fund Management Co., Ltd. The company completed the settlement on April 18, 2019.
Approval of share capital changes
□ Applicable √ Not applicable
Status of registration process of transferred shares
□ Applicable √ Not applicable
Progress of Share Repurchase
□ Applicable √ Not applicable
Implementation Progress of Reducing Holdings of Repurchase Shares by Centralized Bidding
□ Applicable √ Not applicable
Influences of share capital changes on financial indices such as basic earnings per share, diluted earnings per share, and
net asset per share attributed to common shareholders
39
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
□ 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
Increased
Number of
Number of number of End-of-Ter
Limited Shares
Shareholder initial restricted restricted m Limited Restriction reason Release date
Released in the
shares shares in the Shares
Current Period
current period
The number of
Liaoning Provincial restricted shares
Transportation Investment 184,842,883 184,842,883 0 0 participating in the April 18th 2019
Group Co., Ltd. additional issue
was 184,842,883.
CCB Principal Asset The number of
Management – ICBC – CR restricted shares
Trust – CR Trust Xing 184,842,883 184,842,883 0 0 participating in the April 18th 2019
Sheng No. 5 Collective Fund additional issue
Trust Plan was 184,842,883.
Bei Xin Rui Feng Fund – The number of
China Merchants Bank – Bei restricted shares
Xin Rui Feng Fund Feng Qing 184,842,883 184,842,883 0 0 participating in the April 18th 2019
No. 229 Asset Management additional issue
Plan was 184,842,883.
China Life AMP Fund– ICBC The number of
– China Life AMP – Hua Xin restricted shares
Trust Targeted Additional 184,842,883 184,842,883 0 0 participating in the April 18th 2019
Shares Issuance No. 10 Asset additional issue
Management Plan was 184,842,883.
Total 739,371,532 739,371,532 0 0 -- --
II. Securities Issuance and Listing
□ Applicable √ Not applicable
III. Total Number of shareholders and shareholding
Unit: Shares
The total number of
Total number of
common shareholders 55,071 preferred shareholders 0
at the end of the voting rights restored at
reporting period the end of the reporting
period (See Notes 8)
Shareholding of shareholders holding more than 5% or top 10 shareholders
Holding Number of Changes in Number of pledged or
Name of the Nature of Restricted Un-restricted frozen shares
Percentage shares held at reporting
shareholder shareholder shares held shares held
(%) period-end period Status Number
Benxi Steel & Iron State-owned Pledged 1,463,095,133
61.43% 2,380,901,255 25,491,992 2,380,901,255
(Group) Co., Ltd. legal person Frozen 45,000,000
Liaoning Provincial State-owned
4.77% 184,842,883 184,842,883
Transportation legal person
40
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Investment Group
Co., Ltd.
CCB Principal Asset
Management – ICBC
– CR Trust – CR
Others 4.77% 184,842,883 184,842,883
Trust Xing Sheng
No. 5 Collective Fund
Trust Plan
Bei Xin Rui Feng
Fund – China
Merchants Bank – Bei
Xin Rui Feng Fund Others 4.77% 184,842,883 184,842,883
Feng Qing No. 229
Asset Management
Plan
China Life AMP
Fund– ICBC – China
Life AMP – Hua Xin
Trust Targeted Others 4.77% 184,842,883 184,842,883
Additional Shares
Issuance No. 10 Asset
Management Plan
Domestic
Liang zhongqing 0.50% 19,292,013 19,292,013 19,292,013
natural person
Domestic
Liu qiuying 0.37% 14,158,663 14,158,663 14,158,663
natural person
VANGUARD
EMERGING Overseas legal
0.21% 8,157,311 8,157,311
MARKETS STOCK person
INDEX FUND
Domestic
Chen jinhong 0.18% 6,876,375 -604,300 6,876,375
natural person
Domestic
Chen guohua 0.14% 5,489,314 5,489,314 5,489,314
natural person
Strategy investors or general legal
person becomes top 10 shareholders due None
to rights issued (if any) (See Notes 3)
It is unknown to the Company whether there is any related connection or ‘Action in Concert’ as
Notes to relationship or ‘action in
described by Rules of Information Disclosing Regarding Changing of Shareholding Status of
concert’ among the top 10 shareholders.
Listed Companies existing among the above shareholders.
Shareholding of top 10 unrestricted shareholders
Un-restricted shares held at Category of shares
Name of the shareholder
the end of the reporting period Category of shares Quantity
Benxi Steel & Iron (Group) Co., Ltd. 2,380,901,255 Common shares in RMB 2,380,901,255
Liaoning Provincial Transportation Investment
184,842,883 Common shares in RMB 184,842,883
Group Co., Ltd.
CCB Principal Asset Management – ICBC – CR
Trust – CR Trust Xing Sheng No. 5 Collective 184,842,883 Common shares in RMB 184,842,883
Fund Trust Plan
Bei Xin Rui Feng Fund – China Merchants
Bank – Bei Xin Rui Feng Fund Feng Qing No. 184,842,883 Common shares in RMB 184,842,883
229 Asset Management Plan
China Life AMP Fund– ICBC – China Life
AMP – Hua Xin Trust Targeted Additional 184,842,883 Common shares in RMB 184,842,883
Shares Issuance No. 10 Asset Management Plan
Liang zhongqing 19,292,013 Common shares in RMB 19,292,013
Liu qiuying 14,158,663 Common shares in RMB 14,158,663
VANGUARD EMERGING MARKETS
8,157,311 Foreign shares in domestic exchange 8,157,311
STOCK INDEX FUND
Chen jinhong 6,876,375 Common shares in RMB 6,876,375
41
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Chen guohua 5,489,314 Common shares in RMB 5,489,314
Benxi Steel & Iron (Group) Co., Ltd., the holding shareholder, has no relationship with
any of the other shareholders among the top 10 shareholders, neither being regarded as
action-in-concert parties by the Information Disclosure Regulations for Change of
Notes to relationship or ‘action in concert’
Shareholding in PLC. The Company is not aware of any relationship among the other
among the top 10 non-restricted shareholders,
shareholders, neither being regarded as action-in-concert parties by the Information
and among the top 10 non-restricted
Disclosure Regulations for Change of Shareholding in PLC. The Company is not aware
shareholders and top 10 shareholders
of any relationship among the top 10 shareholders, neither being regarded as
action-in-concert parties by the Information Disclosure Regulations for Change of
Shareholding in PLC.
Benxi Steel & Iron (Group) Co., Ltd. holds 2,141,901,255 shares of the Company’s
stock through ordinary account and holds 239,000,000 shares of the Company’s stock
through credit security account totaling 2,380,901,255 shares. Liang zhongqing holds
Shareholders among the top 10 participating in
142,200 shares of the Company’s stock through ordinary account. Liu qiuying holds
securities margin trading (if any) (see Note 4)
5,266,200 shares of the Company’s stock through ordinary account and holds 8,892,463
shares of the Company’s stock through credit security account. Chen guohua holds
5,489,314 through credit security account.
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. Change of controlling shareholder or actual controller
Change of controlling shareholder during the reporting period
□ Applicable √ Not applicable
There was no change of holding shareholder in the report period.
Change of actual controller during the reporting period
□ Applicable √ Not applicable
There was no change of substantial controller in the report period.
42
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
VII. Status of Preferred Shares
□ Applicable √ Not applicable
There was no preferred shares during the reporting period.
43
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
VIII. Status of Directors, Supervisors, and Senior Executives
I. Change in Shares held by Directors, Supervisors and Senior Executives
√ Applicable □ Not applicable
Shares Shares
Shares held increased decreased
Office Other increase Shares held at
Name Position at the during the during the
status / decrease the year-end
year-begin reporting reporting
period period
Director,
Gao Lie In office
Chairman
Cao Director, Vice
In office
Aimin Chairman
Director,
Shen
General In office
Qiang
Manager
Huang
Director In office
Xinghua
Zhang Independent
In office
Suxun Director
Zhong Independent
In office
Tianli Director
Zhao Independent
In office
Xinan Director
Supervisor,
Chairman of
Han Mei In office
Supervisory
Committee
Li Lin Supervisor In office
Li
Supervisor In office
Xiaowei
Zhao
Supervisor In office
Xingtao
Zhang
Supervisor In office
yanlong
Bao Deputy General
In office
Mingwei Manager
Wang Deputy General
In office
Fengmin Manager
Huo Deputy General In office
44
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Gang Manager
Director of
Zhao
Finance In office
Zhonghua
Gao Secretary of the
In office
Desheng Board
Wang Director, Leaving
Shu Chairman office
Jin Yong Independent Leaving
li Director office
Liu Leaving
Supervisor
Yansong office
Hu
Deputy General Leaving
Guangyu
Manager office
an
Total -- --
II. Change in Directors, Supervisors and Senior Executives
√Applicable □ Not applicable
Name Position Type of change Date Reason
th
Wang Shu Director, Chairman Leaving office Mar 13 ,2019 Voluntary turnover
th
Gao Lie Director, Chairman Elected Mar 14 ,2019
Shen Qiang Director Elected May 16th ,2019
Leaving office at
Independent
Jin Yongli the end of the May 16th ,2019 Term expired
Director
term
Independent
Zhang Suxun Elected May 16th ,2019
Director
Li Xiaowei Supervisor Elected Mar 14th ,2019
Employee
Liu Yansong representative Leaving office Jun 26th ,2019 Voluntary turnover
supervisor
Employee
Zhao Xingtao representative Elected Jun 26th , 2019
supervisor
Appointed and
Gao Lie General Manager Mar 14th ,2019 Job Change
dismissed
Shen Qiang General Manager Appointment Mar 14th ,2019
Hu Guangyuan Deputy Manager Leaving office Mar 14th ,2019 Job Change
Huo Gang Deputy Manager Appointment Mar 14th ,2019
45
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
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 annual report
No.
46
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
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 16,945,772,392.43 16,567,471,755.77
Settlement provisions
Capital lent
Financial assets held for trading
Financial assets at fair value
through profit or loss
Derivative financial assets
Notes receivable 4,518,016,226.76 3,580,145,843.38
Accounts receivable 614,718,839.21 639,482,481.45
Receivables financing
Prepayments 1,314,464,404.93 1,321,537,514.78
Premium receivable
Reinsurance accounts receivable
Receivable deposit for reinsurance
contract
Other receivables: 205,466,650.77 202,763,964.98
Including: Interest receivables 13,872,107.84 11,608,705.43
Dividend receivables
47
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Redemptory financial assets for
sale
Inventories 11,967,579,023.47 10,677,747,112.40
Contract assets
Assets classified as held for sale
Non-current assets due within one
year
Other current assets 247,612,982.23 292,119,771.13
Total current assets 35,813,630,519.80 33,281,268,443.89
Non-current assets:
Loan and advances issued
Debt investments
Available-for-sale financial assets 1,041,824,829.00
Other debt investments
Held-to-maturity investments
Long-term receivables
Long-term equity investments 2,481,589.04 2,455,681.55
Other equity instrument
1,041,824,829.00
investments
Other non-current financial assets
Investment properties
Fixed assets 22,672,967,771.15 23,924,504,539.97
Construction in progress 1,374,410,959.70 836,594,457.82
Productive biological assets
Oil and gas assets
Right of use assets
Intangible assets 274,783,708.74 278,062,441.04
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets 175,524,513.32 191,452,547.21
Other non-current assets 68,303,165.35 76,341,975.35
Total non-current assets 25,610,296,536.30 26,351,236,471.94
Total assets 61,423,927,056.10 59,632,504,915.83
Current Liabilities:
48
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Short-term loans 12,298,193,000.00 11,938,490,375.85
Loan from central bank
Absorbed deposit and interbank
deposit
Financial liabilities held for trading
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable 11,650,282,357.86 10,013,192,014.02
Accounts payable 5,626,838,770.27 5,522,042,811.65
Advance from customers 3,345,451,646.56 3,331,854,098.42
Financial assets sold for
repurchase
Deposits from customers and
interbank
Acting trading securities
Acting underwriting securities
Employee benefits payable 50,261,386.01 51,466,231.72
Current tax liabilities 62,888,848.55 515,752,369.68
Other payables 899,997,986.06 862,511,178.96
Including: Interest payables 9,343,905.54 9,658,681.99
Dividend payables 193,768,576.60
Handling charges and commission
payable
Reinsurance accounts payable
Contract liabilities
Liabilities held for sale
Non-current liabilities due within
1,036,582,163.28 350,965,576.32
one year
Other current liabilities
Total current liabilities 34,970,496,158.59 32,586,274,656.62
Non-current liabilities:
Provision for insurance contract
Long-term loans 6,213,054,564.15 7,083,640,094.16
Bonds payable
49
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Including: Preferred stock
Perpetual bond
Lease liabilities
Long-term payables 52,733,529.65 13,686,705.92
Long-term employee benefits
payables
Estimated liabilities
Deferred income 248,232,002.97 289,499,002.97
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 6,514,020,096.77 7,386,825,803.05
Total liabilities 41,484,516,255.36 39,973,100,459.67
Shareholders’ equity:
Share capital 3,875,371,532.00 3,875,371,532.00
Other equity instruments
Including: Preferred stock
Perpetual bond
Capital reserves 12,343,209,847.29 12,343,209,847.29
Less: treasury shares
Other comprehensive income
Special reserves 21,013,956.29 683,937.71
Surplus reserves 961,105,529.85 961,105,529.85
General risk reserves
Undistributed profits 2,205,328,308.98 1,945,887,269.82
Total equity attributable to equity
19,406,029,174.41 19,126,258,116.67
holders of the parent company
Non-controlling interests 533,381,626.33 533,146,339.49
Total shareholder’s equity 19,939,410,800.74 19,659,404,456.16
Total liabilities and shareholder’s equity 61,423,927,056.10 59,632,504,915.83
Legal Representative: Gao Lie Person in charge of accounting: Shen Qiang Accounting Dept. Leader: Zhao Zhonghua
50
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
2. BALANCE SHEET OF THE PARENT COMPANY
Unit: Yuan
Items Ending balance Beginning balance
Current assets:
Cash at bank and on hand 14,845,582,986.81 15,536,305,375.00
Financial assets held for trading
Financial assets at fair value
through profit or loss
Derivative financial assets
Notes receivable 4,296,253,321.51 3,356,020,598.89
Accounts receivable 402,397,751.85 409,553,059.27
Receivables financing
Prepayments 1,292,855,972.17 1,309,194,738.97
Other receivables 228,691,383.89 235,037,391.46
Including: Interest receivables 12,222,112.07 9,815,280.04
Dividend receivables
Inventories 10,420,332,375.72 8,681,362,081.72
Contract assets
Assets classified as held for sale
Non-current assets due within one
year
Other current assets 194,348,087.50 193,989,096.20
Total current assets 31,680,461,879.45 29,721,462,341.51
Non-current assets:
Debt investments
Available-for-sale financial assets 1,041,624,829.00
Other debt investments
Held-to-maturity investment
Long-term receivables
Long-term equity investments 2,016,281,902.16 2,016,281,902.16
Other equity instrument
1,041,624,829.00
investments
Other non-current financial assets
Investment properties
51
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Fixed assets 20,954,291,845.88 22,035,187,328.57
Construction in progress 1,357,632,503.06 825,553,510.15
Productive biological assets
Oil and gas assets
Right of use assets
Intangible assets 147,123,109.32 148,776,177.96
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets 80,910,940.25 96,220,003.00
Other non-current assets 68,303,165.35 76,341,975.35
Total non-current assets 25,666,168,295.02 26,239,985,726.19
Total assets 57,346,630,174.47 55,961,448,067.70
Current Liabilities:
Short-term loans 10,998,193,000.00 10,624,270,375.85
Financial assets held for trading
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable 9,985,911,079.49 9,213,748,427.22
Accounts payable 6,566,943,730.51 5,940,816,426.48
Advance from customers 3,042,304,493.12 3,189,143,565.45
Contract liabilities
Employee benefits payable 49,866,464.88 49,378,095.47
Current tax liabilities 47,720,744.95 507,003,883.57
Other payables 689,660,196.29 538,051,513.13
Including: Interest payables 7,250,794.60 7,341,833.33
Dividend payables 193,768,576.60
Liabilities held for sale
Non-current liabilities due within
1,036,582,163.28 350,965,576.32
one year
Other current liabilities
Total current liabilities 32,417,181,872.52 30,413,377,863.49
Non-current liabilities:
Long-term loans 6,213,054,564.15 7,083,640,094.16
52
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Bonds payable
Including: Preferred stock
Perpetual bond
Lease liabilities
Long-term payables 52,733,529.65 13,686,705.92
Long-term employee benefits
payable
Estimated liabilities
Deferred incomes 248,232,002.97 289,499,002.97
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 6,514,020,096.77 7,386,825,803.05
Total liabilities 38,931,201,969.29 37,800,203,666.54
Shareholders’ equity:
Share capital 3,875,371,532.00 3,875,371,532.00
Other equity instruments
Including: Preferred stock
Perpetual bond
Capital reserves 11,923,058,165.17 11,923,058,165.17
Less: treasury shares
Other comprehensive income
Special reserves 18,126,059.79 525,218.48
Surplus reserves 961,105,529.85 961,105,529.85
Undistributed profits 1,637,766,918.37 1,401,183,955.66
Total shareholder’s equity 18,415,428,205.18 18,161,244,401.16
Total liabilities and shareholder’s equity 57,346,630,174.47 55,961,448,067.70
3. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unit: Yuan
Items Jan – Jun 2019 Jan – Jun 2018
1. Total operating income 24,102,595,167.14 23,441,247,377.14
Including: Operating income 24,102,595,167.14 23,441,247,377.14
Interest income
Premium earned
53
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Income from handling
charges and commission
2. Total operating cost 23,621,825,282.23 22,738,904,288.94
Including: Operating cost 22,067,612,729.65 20,804,207,420.98
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 114,125,362.97 153,307,375.64
Selling and distribution
574,445,199.14 514,038,008.95
expenses
General and administrative
446,767,811.77 461,842,424.56
expenses
Research and development
15,408,472.28 2,470,641.53
expenses
Financial expenses 403,465,706.42 803,038,417.28
Including: interest expenses 586,490,262.69 575,001,615.20
Interest incomes 127,083,779.58 61,605,403.34
Add: Other incomes 41,695,000.00 41,274,238.70
Income on investment ("-" for loss) 25,907.49 3,493,150.68
Including: Income from associates
25,907.49
and joint ventures
Income from
derecognition of financial assets
measured at amortised cost ("-" for loss)
Exchange Income ("-" for loss)
Hedging income from net exposure
(“-" for loss)
Gains from the change in fair value
(“-" for loss)
Expected credit losses (“-" for loss) 3,751,513.83
54
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Asset impairment losses (“-" for
20,917,963.64
loss)
Assets disposal gains（“-” for loss） 2,418,704.34 825,580.63
3. Operating profit ("-" for loss) 528,661,010.57 768,854,021.85
Add: Non-operating income 8,210,182.24 2,138,397.80
Less: Non-operating expenses 57,974,322.05 1,382,402.26
4. Total profit ("-" for loss) 478,896,870.76 769,610,017.39
Less: Income tax expenses 25,962,181.73 11,636,226.04
5. Net Profit ("-" for loss) 452,934,689.03 757,973,791.35
(1) Classification by continuing
operating
1 Net profit from continuing
452,934,689.03 757,973,791.35
operation
2 Net profit from discontinued
operation
(2) Classification by ownership
1 Net profit attributable to the
453,209,615.76 756,951,987.59
owners of parent company
2 Net profit attributable to
-274,926.73 1,021,803.76
non-controlling shareholders
6. Other comprehensive income after tax
Other comprehensive income
attributable to owners of parent company
after tax
1) Other comprehensive income
items that will not be reclassified into
gains/losses
(1) . Re-measurement of
defined benefit plans of changes in net
debt or net assets
(2) . Other comprehensive
income under the equity method cannot
be reclassified into profit or loss
(3). Changes of fair value of
other equity instrument investments
(4). Changes in the fair value
of the company's own credit risk
(5). Others
55
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
2) Other comprehensive income that
will be reclassified into profit or loss
(1) . Other comprehensive
income under the equity method can be
reclassified into profit or loss
(2). Gains and losses from
fair value changes of other debt
investments
(3). Gains and losses from
fair value changes of available-for-sale
financial assets
(4). Gains and losses
resulting from reclassification of
financial assets recognised in other
comprehensive income
(5). Gains and losses from
reclassification of held-to-maturity
investments to available-for-sale
investments
(6). Credit impairment losses
of other debt investments
(7). Effective portion of
gains or losses from cash flow hedging
(8). Translation differences
in foreign currency financial statements
(9). Others
Other comprehensive income
attributable to non-controlling
shareholders after tax
7. Total comprehensive income 452,934,689.03 757,973,791.35
Total comprehensive income
453,209,615.76 756,951,987.59
attributable to owners of parent company
Total comprehensive income
attributable to non-controlling -274,926.73 1,021,803.76
shareholders
8. Earnings per share:
1) Basic earnings per share 0.12 0.20
2) Diluted earnings per share 0.12 0.20
The current business combination under common control, the net profits of the combined party before achieved:
56
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Yuan, net profit of previous period of the combined party realized: Yuan.
Legal Representative: Gao Lie Person in charge of accounting: Shen Qiang Accounting Dept. Leader: Zhao Zhonghua
4. INCOME STATEMENT OF THE PARENT COMPANY
Unit: Yuan
Items Jan – Jun 2019 Jan – Jun 2018
1. Total operating income 23,447,215,857.93 23,682,865,109.14
Less: Operating cost 21,757,289,997.18 21,401,191,962.20
Taxes and surcharges 84,467,404.41 135,543,392.96
Selling and distribution expenses 335,094,548.06 265,554,867.46
General and administrative
419,337,998.35 438,193,017.33
expenses
Research and development
15,408,472.28 2,470,641.53
expenses
Financial expenses 388,071,914.59 774,523,490.60
Including: interest expenses 558,095,343.66 543,682,390.97
Interest incomes 114,189,626.94 58,304,426.91
Add: Other incomes 41,695,000.00 41,274,238.70
Income on investment ("-" for loss) 3,493,150.68
Including: Income from associates
and joint ventures
Income from
derecognition of financial assets
measured at amortised cost ("-" for loss)
Hedging income from net exposure
(“-" for loss)
Gains from the change in fair value
(“-" for loss)
Expected credit losses (“-" for loss) 3,751,513.83
Asset impairment losses (“-" for
20,917,963.64
loss)
Assets disposal gains（“-” for loss） 2,465,706.59 825,580.63
2. Operating profit ("-" for loss) 495,457,743.48 731,898,670.71
Add: Non-operating income 8,138,040.75 1,714,748.66
Less: Non-operating expenses 57,935,182.17 1,382,402.26
3. Total profit ("-" for loss) 445,660,602.06 732,231,017.11
57
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Less: Income tax expenses 15,309,062.75 5,679,337.17
4. Net Profit ("-" for loss) 430,351,539.31 726,551,679.94
(1) Classification by continuing
operating
(2) Classification by ownership
5. Other comprehensive income after
tax
1) Other comprehensive income
items that will not be reclassified into
gains/losses
(1) . Re-measurement of
defined benefit plans of changes in net
debt or net assets
(2) . Other comprehensive
income under the equity method cannot
be reclassified into profit or loss
(3). Changes of fair value of
other equity instrument investments
(4). Changes in the fair value
of the company's own credit risk
(5). Others
2) Other comprehensive income that
will be reclassified into profit or loss
(1) . Other comprehensive
income under the equity method can be
reclassified into profit or loss
(2). Gains and losses from
fair value changes of other debt
investments
(3). Gains and losses from
fair value changes of available-for-sale
financial assets
(4). Gains and losses
resulting from reclassification of
financial assets recognised in other
comprehensive income
(5). Gains and losses from
reclassification of held-to-maturity
investments to available-for-sale
58
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
investments
(6). Credit impairment losses
of other debt investments
(7). Effective portion of
gains or losses from cash flow hedging
(8). Translation differences
in foreign currency financial statements
(9). Others
6. Total comprehensive income 430,351,539.31 726,551,679.94
7. Earnings per share:
1) Basic earnings per share
2) Diluted earnings per share
5. CONSOLIDATED STATEMENT OF CASH FLOWS
Unit: Yuan
Items Jan – Jun 2019 Jan – Jun 2018
1. Cash flow from operating activities:
Cash received from sale of goods
16,357,053,782.81 15,984,735,085.76
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
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
59
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
financial institutions
Net increase of fund for buy-back
business
Tax rebate received 247,667,635.74 246,514,404.27
Other cash received relating to
144,904,624.34 81,782,480.19
operating activities
Subtotal of cash inflow received from
16,749,626,042.89 16,313,031,970.22
operation activities
Cash paid for goods and services 13,876,838,386.74 14,086,077,537.47
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
987,603,117.25 779,373,374.96
employees
Cash paid for all types of taxes 653,208,180.03 406,064,168.90
Other cash paid relating to
247,189,353.20 310,997,147.42
operating activities
Subtotal of cash outflow received from
15,764,839,037.22 15,582,512,228.75
operation activities
Net cash flows generated from
984,787,005.67 730,519,741.47
operating activities
2. Cash flows from investing activities:
Cash received from return on
500,000,000.00
investments
Cash received from distribution of
3,493,150.68
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
60
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
investing activities
Subtotal of cash inflow received from
503,493,150.68
investing activities
Cash paid for acquisition of fixed
assets, intangible assets and other 545,199,197.41 680,441,782.39
long-term assets
Cash paid for acquisition of
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
545,199,197.41 680,441,782.39
investing activities
The net cash flow generated by
-545,199,197.41 -176,948,631.71
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 5,828,037,190.72 9,721,396,957.08
Cash received from bond issuance
Other proceeds relating to
financing activities
Subtotal cash inflow received from
5,828,037,190.72 13,687,196,945.27
financing activities
Cash repayments of borrowings 5,653,303,509.62 14,683,452,081.71
Cash payments for distribution of
626,178,049.57 661,538,139.82
dividends, profit or interest expenses
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
6,279,481,559.19 15,344,990,221.53
financing activities
61
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
The net cash flow generated by
-451,444,368.47 -1,657,793,276.26
financing activities
4. Effect of foreign exchange rate
48,230,507.75 105,015,610.23
changes on cash and cash equivalents
5. Net increase in cash and cash
36,373,947.54 -999,206,556.27
equivalents
Add: Cash and cash equivalents at
11,752,548,621.97 17,037,713,410.49
the beginning of the period
6. Cash and cash equivalents at the
11,788,922,569.51 16,038,506,854.22
ending of the period
6. CASH FLOW STATEMENT OF THE PARENT COMPANY
Unit: Yuan
Items Jan – Jun 2019 Jan – Jun 2018
1.Cash flow from operating activities:
Cash received from sale of goods
15,970,406,775.11 15,778,223,117.53
or rendering of services
Tax rebate received 219,614,786.86 119,119,395.04
Other cash received relating to
140,536,583.70 76,026,838.22
operating activities
Subtotal of cash inflow received from
16,330,558,145.67 15,973,369,350.79
operation activities
Cash paid for goods and services 13,842,821,616.84 13,721,886,325.25
Cash paid to and on behalf of
928,568,022.64 726,170,588.86
employees
Cash paid for all types of taxes 576,260,568.31 341,018,028.32
Other cash paid relating to
165,446,890.35 222,352,157.09
operating activities
Subtotal of cash outflow received from
15,513,097,098.14 15,011,427,099.52
operation activities
Net cash flows generated from
817,461,047.53 961,942,251.27
operating activities
2. Cash flows from investing activities:
Cash received from return on
500,000,000.00
investments
Cash received from distribution of 3,493,150.68
62
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
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
investing activities
Cash paid for acquisition of fixed
assets, intangible assets and other 539,451,276.57 677,920,104.21
long-term assets
Cash paid for acquisition of
259,300,000.00
investments
Net cash received from subsidiary
and other operating unit
Other cash paid relating to
investing activities
Subtotal of cash outflows from
539,451,276.57 937,220,104.21
investing activities
The net cash flow generated by
-539,451,276.57 -433,726,953.53
investment activities
3. Cash flows from financing activities:
Proceeds from investment 3,965,799,988.19
Proceeds from borrowings 4,902,327,190.72 8,986,529,900.00
Cash received from bond issuance
Other proceeds relating to
financing activities
Subtotal cash inflow received from
4,902,327,190.72 12,952,329,888.19
financing activities
Cash repayments of borrowings 4,713,373,509.62 13,939,938,977.79
Cash payments for distribution of
589,497,122.29 635,530,683.74
dividends, profit or interest expenses
Other cash payments relating to
financing activities
Subtotal of cash outflows from
5,302,870,631.91 14,575,469,661.53
financing activities
63
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
The net cash flow generated by
-400,543,441.19 -1,623,139,773.34
financing activities
4. Effect of foreign exchange rate
48,222,621.42 105,012,744.72
changes on cash and cash equivalents
5. Net increase in cash and cash
-74,311,048.81 -989,911,730.88
equivalents
Add: Cash and cash equivalents at
10,807,824,843.20 16,713,104,199.65
the beginning of the period
6. Cash and cash equivalents at the
10,733,513,794.39 15,723,192,468.77
ending of the period
64
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
7. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Unit: Yuan
Jan to Jun 2019
Owner’s equity attributable to parent company
Other equity
Total
Items instruments Less: Other General Non-controlling
Share Capital Special Surplus Undistributed shareholder’s
treasury comprehensive risk Others Subtotal interests
Prefer Perp equity
capital reserves reserves reserves profits
ence etual Others shares income reserve
shares bond
1. Ending
3,875,371,532. 12,343,209, 19,126,258,116.6
balance of 683,937.71 961,105,529.85 1,945,887,269.82 533,146,339.49 19,659,404,456.16
00 847.29 7
last year
Add:
Change of
accounting
policies
Correction of
errors for
previous period
65
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Business
consolidation
under common
control
Others
2. Beginning
balance of 3,875,371,532. 12,343,209, 19,126,258,116.6
683,937.71 961,105,529.85 1,945,887,269.82 533,146,339.49 19,659,404,456.16
current 00 847.29 7
year
3. Changes in
current
year (“-” 20,330,018.58 259,441,039.16 279,771,057.74 235,286.84 280,006,344.58
for
decrease )
1) Total
comprehensive 453,209,615.76 453,209,615.76 -274,926.73 452,934,689.03
income
2) Capital
increase and
decrease by
shareholders
(1) Common
share invested
by shareholders
66
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
(2) Capital input
by the holder of
other equity
instruments
(3) Share-based
payment
attributable to
owners’ equity
(4) Others
3) Profit
-193,768,576.60 -193,768,576.60 -193,768,576.60
distribution
(1)
Appropriation to
surplus reserves
(2)
Appropriation to
general risk
reserve
(3) Profit
distribution to -193,768,576.60 -193,768,576.60 -193,768,576.60
shareholders
(4) Others
4) Transfers
within
67
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
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) Changes in
defined benefit
plan to retained
earnings
(5) Other
comprehensive
income to
retained
earnings
68
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
(6) Others
5) Special
20,330,018.58 20,330,018.58 510,213.57 20,840,232.15
reserves
(1) Provision of
25,542,658.45 25,542,658.45 510,213.57 26,052,872.02
special reserves
(2) Use of
5,212,639.87 5,212,639.87 5,212,639.87
special reserves
6) Others
4. Ending
3,875,371,532. 12,343,209, 19,406,029,174.4
balance of 21,013,956.29 961,105,529.85 2,205,328,308.98 533,381,626.33 19,939,410,800.74
00 847.29 1
current year
Jan to Jun 2018
Owner’s equity attributable to parent company
Other equity
Total
Items instruments Less: Other General Non-controlling
Share Capital Special Surplus Undistributed shareholder’s
treasury comprehensive risk Others Subtotal interests
Prefer Perp equity
capital reserves reserves reserves profits
ence etual Others shares income reserve
shares bond
4. Ending
3,136,000,000. 9,114,845,5 14,315,588,729.0
balance of 475,046.75 961,105,529.85 1,103,162,610.35 533,475,744.19 14,849,064,473.19
00 42.05 0
last year
69
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Add:
Change of
accounting
policies
Correction of
errors for
previous period
Business
consolidation
under common
control
Others
5. Beginning
balance of 3,136,000,000. 9,114,845,5 14,315,588,729.0
475,046.75 961,105,529.85 1,103,162,610.35 533,475,744.19 14,849,064,473.19
current 00 42.05 0
year
6. Changes in
current
739,371,532.0 3,228,364,3
year (“-” 208,890.96 842,724,659.47 4,810,669,387.67 -329,404.70 4,810,339,982.97
0 05.24
for
decrease )
1) Total 1,036,493,236.07 1,036,493,236.07 -315,177.71 1,036,178,058.36
70
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
comprehensive
income
2) Capital
increase and 739,371,532.0 3,228,364,3
3,967,735,837.24 3,967,735,837.24
decrease by 0 05.24
shareholders
(1) Common
739,371,532.0 3,228,364,3
share invested 3,967,735,837.24 3,967,735,837.24
0 05.24
by shareholders
(2) Capital input
by the holder of
other equity
instruments
(3) Share-based
payment
attributable to
owners’ equity
(4) Others
3) Profit
-193,768,576.60 -193,768,576.60 -193,768,576.60
distribution
(1)
Appropriation to
surplus reserves
(2)
71
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
Appropriation to
general risk
reserve
(3) Profit
distribution to -193,768,576.60 -193,768,576.60 -193,768,576.60
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
72
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
(4) Changes in
defined benefit
plan to retained
earnings
(5) Other
comprehensive
income to
retained
earnings
(6) Others
5) Special
208,890.96 208,890.96 -14,226.99 194,663.97
reserves
(1) Provision of
46,823,964.39 46,823,964.39 0.00 46,823,964.39
special reserves
(2) Use of
46,615,073.43 46,615,073.43 14,226.99 46,629,300.42
special reserves
6) Others
4. Ending
3,875,371,532. 12,343,209, 19,126,258,116.6
balance of 683,937.71 961,105,529.85 1,945,887,269.82 533,146,339.49 19,659,404,456.16
00 847.29 7
current year
73
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
8. STATEMENT OF CHANGE IN OWNER’S EQUITY OF THE PARENT COMPANY
Unit: Yuan
Jan to Jun 2019
Other equity instruments
Less: Other
Items Special Undistributed Total shareholder’s
Prefer
Share capital Perpetual Capital reserves treasury comprehensi Surplus reserves Others
ence Others reserves profits equity
bond shares ve income
shares
1. Ending
balance of 3,875,371,532.00 11,923,058,165.17 525,218.48 961,105,529.85 1,401,183,955.66 18,161,244,401.16
last year
Add: Change
of accounting
policies
Correction of
errors for previous
period
Others
2. Beginning
balance of 3,875,371,532.00 11,923,058,165.17 525,218.48 961,105,529.85 1,401,183,955.66 18,161,244,401.16
current year
3. Changes in 17,600,841.31 236,582,962.71 254,183,804.02
74
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
current year
(“-” for
decrease )
1) Total
comprehensive 430,351,539.31 430,351,539.31
income
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
3) Profit
-193,768,576.60 -193,768,576.60
distribution
(1) Appropriation
75
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
to surplus reserves
(2) Profit
distribution to -193,768,576.60 -193,768,576.60
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) Changes in
defined benefit
plan to retained
76
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
earnings
(5) Other
comprehensive
income to retained
earnings
(6) Others
5) Special reserves 17,600,841.31 17,600,841.31
(1) Provision of
22,722,987.71 22,722,987.71
special reserves
(2) Use of special
5,122,146.40 5,122,146.40
reserves
6) Others
4. Ending balance
3,875,371,532.00 11,923,058,165.17 18,126,059.79 961,105,529.85 1,637,766,918.37 18,415,428,205.18
of current year
Jan to Jun 2018
Other equity instruments
Less: Other
Items Special Undistributed Total shareholder’s
Prefer
Share capital Perpetual Capital reserves treasury comprehensi Surplus reserves Others
ence Others reserves profits equity
bond shares ve income
shares
1. Ending
3,136,000,000.00 8,694,693,859.93 276,727.96 961,105,529.85 613,351,724.38 13,405,427,842.12
balance of
77
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
last year
Add: Change
of accounting
policies
Correction of
errors for previous
period
Others
2. Beginning
balance of 3,136,000,000.00 8,694,693,859.93 276,727.96 961,105,529.85 613,351,724.38 13,405,427,842.12
current year
3. Changes in
current year
739,371,532.00 3,228,364,305.24 248,490.52 787,832,231.28 4,755,816,559.04
(“-” for
decrease )
1) Total
comprehensive 981,600,807.88 981,600,807.88
income
2) Capital increase
and decrease by 739,371,532.00 3,228,364,305.24 3,967,735,837.24
shareholders
(1) Common share
739,371,532.00 3,228,364,305.24 3,967,735,837.24
invested by
78
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
shareholders
(2) Capital input
by the holder of
other equity
instruments
(3) Share-based
payment
attributable to
owners’ equity
(4) Others
3) Profit
-193,768,576.60 -193,768,576.60
distribution
(1) Appropriation
to surplus reserves
(2) Profit
distribution to -193,768,576.60 -193,768,576.60
shareholders
(4) Others
4) Transfers within
shareholders’
equity
(1) Capital
reserves
79
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
transferred into
paid-in capital (or
stock)
(2) Surplus
reserves
transferred into
paid-in capital (or
stock)
(3) Surplus
reserves to recover
loss
(4) Changes in
defined benefit
plan to retained
earnings
(5) Other
comprehensive
income to retained
earnings
(6) Others
5) Special reserves 248,490.52 248,490.52
(1) Provision of
40,685,554.06 40,685,554.06
special reserves
(2) Use of special 40,437,063.54 40,437,063.54
80
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2019
reserves
6) Others
4. Ending balance
3,875,371,532.00 11,923,058,165.17 525,218.48 961,105,529.85 1,401,183,955.66 18,161,244,401.16
of current year
81
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
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 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 RMB 5.40 each, and listed in Shenzhen Stock Exchange
since 15 January 1998. The capital shares were totaled to 1,136,000,000 shares.
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 placing price was RMB4.6733 per share.
Approved by the China Securities Regulatory Commission [2017] No. 1476, Bengang Steel Plate Co., Ltd. privately placed no
more than 739,371,534 RMB ordinary shares (A shares) to no more than 10 issuers. The non-public offering was completed on 9
February 2018, and 739,371,532 shares were actually issued. The placing price was RMB5.41 per share.
As at 30 June 2019, the capital shares were totaled to 3,875,371,532 shares.
The Company’s uniform social credit code: 91210000242690243E.
The Company’s registered address: 16th Renmin Road, Pingshan District, Benxi, Liaoning Province.
The Company’s legal representative: Gao Lie.
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. Consolidation scope
The financial statements have been approved for reporting by the board of directors of the Company on 28 August 2019.
Consolidation Scope
As at 30 June 2019, subsidiaries included in the Company’s consolidated financial statements are as follows:
Name of the subsidiaries
Notes to the financial statements Page 1
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Guangzhou Bengang Steel & Iron Trading Co., Ltd.
Shanghai Bengang Metallurgy Science and Technology Co., Ltd.
Bengang Steel Plates Liaoyang Pellet Co., Ltd.
Dalian Benruitong Automobile Material Technology Co., Ltd.
Changchun Bengang Steel & Iron Sales Co., Ltd.
Harbin Bengang Economic and Trading Co., Ltd.
Nanjing Bengang Materials Sales Co., 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 Posco Cold-rolled Sheet Co., Ltd.
Benxi Bengang Steel Sales Co., Ltd
Shenyang Bengang Metallurgical Science and Technology Co., Ltd.
Chongqing Liaoben Steel & Iron Trading Co., Ltd.
Bengang Baojin (Shenyang) Automobile New Material Technology Co., Ltd.
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.
Notes to the financial statements Page 2
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
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/not under common control Business combination
under common control
The assets and liabilities that the Company acquired in a business combination shall be measured on the basis of their
carrying amount of aquiree’s assets, liabilities (as well as the goodwill arising from the business combination) in the
consolidated financial statement of the ultimate controller on the combining date. As for the balance between the
carrying amount of the net assets obtained by the Company and the carrying amount of the consideration paid by it (or
the total par value of the shares issued), capital reserve needs to be adjusted. If the capital reserve is not sufficient, any
excess shall be adjusted against retained earnings.
Business combination not under common control
The Company shall, on the acquisition date, measure the assets given and liabilities incurred or assumed by an
enterprise for a business combination in light of their fair values, and shall record the balances between them and their
carrying amounts into the profits and losses at the current period. The Company shall recognize the positive balance
between the combination costs and the fair value of the identifiable net assets it obtains from the acquiree as goodwill.
The Company shall treat the negative balance between the combination costs and the fair value of the identifiable net
assets it obtains from the acquiree into the profits and losses of the current period.
The intermediary costs and relevant fees for the business combination paid by the acquirer, including the expenses for
audit, assessment and legal services, shall be recorded into the profits and losses at the current period. The transaction
expenses for the issuance of equity securities for the business combination shall be recorded into the initial recognition
amount of equity securities.
Notes to the financial statements Page 3
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
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. 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) Increasing new subsidiaries and businesses
If the Company has a new subsidiary due to business combination under common control during the 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
Notes to the financial statements Page 4
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
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 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 remeasure its previously held equity interest in the acquiree
to its fair value at the acquisition date. The difference between the fair value and the carrying amount shall be
recognized as investment income for the period when the acquisition takes place. When the previously-held equity
investment is accounted for under the equity method, any other comprehensive income previously recognized in
relation to the acquiree’s equity changes shall be transferred to profit or loss for the current period when the
acquisition takes place. Other comprehensive income arising from remeasurement of defined benefit plan is excluded.
(2) Disposing subsidiaries or businesses
1. General treatment
If the Company disposes a subsidiary during the 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
Notes to the financial statements Page 5
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
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 subsidiaries by multiple transactions
Where the Company loses control of a subsidiary in multiple transactions in which it disposes of its subsidiary in
stages, in determining whether to account for the multiple transactions as a single transaction, the Company shall
consider all of the terms and conditions of the transactions and their economic effects. One or more of the following
may indicate that the Company shall account for the multiple arrangements as a single transaction:
(a) Arrangements are entered into at the same time or in contemplation of each other;
(b) Arrangements work together to achieve an overall commercial effect;
(c) The occurrence of one arrangement is dependent on the occurrence of at least one other arrangement; and
(d) One arrangement considered on its own is not economically justified, but it is economically justified when
considered together with other arrangements.
If each of the multiple transactions forms part of a bundled transaction which eventually results in loss of control of
the subsidiary, these multiple transactions shall be accounted for as a single transaction. In the consolidated financial
statements, the difference between the consideration received and the corresponding proportion of the 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 subsidiaries’ equity interest held by non-controlling shareholders
Where the Company has acquired a subsidiary’s equity interest held by non-controlling shareholders, the difference
between the increase in the cost of long-term investments as a result of 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.
Notes to the financial statements Page 6
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
(4) Disposing portion of equity investments in subsidiaries without lossing 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. 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.
8. 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.
2. Translation of foreign currency financial statements
The asset and liability items in the statement of financial position shall be translated at a spot exchange rate on the
balance sheet date. Among the owner's equity items, except the ones as "undistributed profits", others shall be
translated at the spot exchange rate at the time when they are incurred. The income and expense items in the income
statement shall be translated using an exchange rate that is determined in a systematic and reasonable manner and
approximates the spot exchange rate on the transaction date.
When disposing 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
Notes to the financial statements Page 7
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
currency statements of the part of disposal based on the disposal rate and shall shift them into the profits and losses of
the current period.
9. Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
1. Classification of financial instruments
The Company shall classify financial assets on the basis of both the entity’s business model for managing the financial
assets and the contractual cash flow characteristics of the financial asset as: financial assets measured at amortised cost,
financial assets measured at fair value through other comprehensive income (debt instrument) and financial assets
measured at fair value through profit or loss at initial measurement.
A financial asset shall be measured at amortised cost if both of the following conditions are met. The financial asset is
held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
A financial asset shall be measured at fair value through other comprehensive income if both of the following
conditions are met. The financial asset is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Other financial assets other than these are classified as financial assets measured at fair value through profit or loss.
The Company may make an election at initial recognition for non-trading equity instrument investments whether it is
designated as a financial asset (equity instrument) that is measured at fair value through other comprehensive income.
The Company shall classify financial liabilities as financial liabilities measured at amortised cost and financial
liabilities measured at fair value through profit or loss at initial measurement.
The Company may, at initial recognition, designate a financial liability as measured at fair value through profit or loss
because either:
(a) it eliminates or significantly reduces an accounting mismatch;
(b) a group of financial liabilities or financial assets and financial liabilities is managed and its performance is
evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and
information about the group is provided internally on that basis to the entity’s key management personnel;
(c) the financial liability contains embedded derivatives that need to be separated.
Notes to the financial statements Page 8
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
2. Recognition and measurement of financial instruments
(1) Financial assets measured at amortised cost
Financial assets measured at amortized cost include notes receivables, accounts receivables, other receivables,
long-term receivables, debt investments, etc. At initial recognition, the Company shall measure a financial asset at its
fair value plus or minus transaction costs that are directly attributable to the acquisition or issue of the financial asset.
The Company shall measure account receivables at their transaction price if the account receivables do not contain a
significant financing component and accounts receivables that the company has decided not to consider for a financing
component of no more than one year.
Interests calculated by using the effective interest method during the holding period shall be recognized in profit or
loss.
When recovering or disposing the receivables, the difference between the price obtained and the carrying value shall be
recognized in current profit or loss.
(2) Financial assets measured at fair value through other comprehensive income (debt instruments)
Financial assets measured at fair value through other comprehensive income (debt instruments) include receivables
financing, other debt investments, etc. At initial recognition, the Company shall measure a financial asset at its fair
value plus transaction costs that are directly attributable to the acquisition or issuance of the financial asset. The
financial assets are subsequently measured at fair value. Changes in fair value are included in other comprehensive
income except for interest calculated using the effective interest method, impairment losses or gains and exchange
gains and losses.
When the financial assets are derecognized, the accumulated gain or loss previously recognized in other
comprehensive income is transferred from other comprehensive income and recognized in profit or loss.
(3) Financial assets at fair value through other comprehensive income (equity instruments)
Financial assets at fair value through other comprehensive income (equity instruments) include other equity instrument
investments, etc.
At initial recognition, the Company shall measure a financial asset at its fair value plus transaction costs that are
directly attributable to the acquisition or issue of the financial asset. The financial assets are subsequently measured at
fair value. Changes in fair value are included in other comprehensive income. The dividends obtained are recognised in
profit and loss.
When the financial assets are derecognized, the accumulated gain or loss previously recognised in other comprehensive
income is transferred from other comprehensive income and recognised in retained earnings.
Notes to the financial statements Page 9
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
(4) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include transactional financial assets, derivative financial assets,
other non-current financial assets, etc.
The Company shall measure the financial assets at fair value at initial recognition. Transaction costs are recognised in
profit or loss. Changes in fair value are included in profit or loss.
When the financial assets are derecognized, the difference between the fair value and the initially recorded amount is
recognized as investment income, and the gains and losses from changes in fair value are adjusted.
(5) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include current financial liabilities, derivative financial liabilities,
etc.
The Company shall measure the financial assets at fair value at initial recognition. Transaction costs are recognised in
profit or loss. Changes in fair value are included in profit or loss.
When the financial liabilities are derecognized, the difference between the fair value and the initially recorded amount
is recognized as investment income, and the gains and losses from changes in fair value are adjusted.
(6) Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost include short-term borrowings, notes payables, accounts payables,
other payables, long-term borrowings, bonds payables, long-term payables.
At initial recognition, the Company shall measure a financial liability at its fair value plus transaction costs that are
directly attributable to the acquisition or issue of the financial asset.
Interests calculated by using the effective interest method during the holding period shall be recognized in profit or
loss.
When the financial liabilities are derecognized, the difference between the price obtained and the carrying value shall
be recognised in profit and loss.
3. Recognition and measurement of financial assets transfer
Notes to the financial statements Page 10
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
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 derecognize the financial asset. If it retained nearly all of the risks and rewards related to the
ownership of the financial asset, it shall not derecognize the financial asset.
To judge whether the transfer of a financial asset can satisfy the conditions as prescribed in these Standards for the
derecognition 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 financial asset transfer. If the
transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the amounts of the
following 2 items shall be recorded in the profit or loss 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 be derecognized, the entire book value of the
transferred financial asset shall, between the portion derecognized and the portion not derecognized, 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 profit or loss of the current period :
(1) The book value of the portion derecognized; and
(2) The sum of consideration of the portion derecognized, 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 derecognized (in the
case 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 of derecognition, it shall continue to be recognized as
financial assets and the consideration received shall be recognized as financial liabilities.
4. Derecognition of financial liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in part may the financial liability be
derecognized 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 derecognize the existing financial
liability, and shall at the same time recognize a new financial liability.
Notes to the financial statements Page 11
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Where the Company makes substantial revisions to part or all of the contractual stipulations of the existing financial
liability, it shall derecognize the existing financial liability or part of it, and at the same time recognize the financial
liability after revising the contractual stipulations as a new financial liability.
Where a financial liability is totally or partially derecognized, the Company shall recognize in profit or loss of the
current period the difference between the carrying amount derecognized 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 recognized. The gap between the carrying amount which is distributed to the part derecognized
and the considerations it has paid (including the noncash assets it has transferred out and the new financial liabilities it
has assumed) shall be recognized into profit or loss of the current period.
5. Determination of the fair value of the financial assets (liabilities)
If active markets for the financial instruments exist, the fair value shall be measured by quoted prices in the active
markets. If active markets for the financial instruments do not exist, valuation techniques shall be applied for the
measurement. The Company uses valuation techniques appropriate in the circumstances and for which sufficient data
are available to measure fair value. The Company chooses relevant observable inputs for identical or similar assets or
liabilities. Only when relevant observable inputs are unavailable or should the Company use unobservable inputs for
the asset or liability.
6. Impairment of the financial assets
The Company shall recognize loss allowance for expected credit losses on financial asset measured at amortised cost,
and financial assets measured at fair value through other comprehensive income, such as debt instrument investments,
contract assets, financial guarantee contract, etc.
The Company considers reasonable and relevant information on past events, current conditions and forecasts of future
economic conditions, and takes the risk of default as a weight, and calculates the difference between the cash flow
receivable from the contract and the cash flow expected to be received. The probability-weighted amount of the present
value of the current value confirms the expected credit loss.
At each reporting date, the Company shall measure the expected credit losses of financial instruments at different
stages. If the credit risk on a financial instrument has not increased significantly since initial recognition, it is in the
first stage, the Company shall measure the loss allowance for that financial instrument at an amount equal to 12-month
expected credit losses. If the credit risk has increased significantly since initial recognition but the credit impairment
has not occurred, it is in the second stage, and the company shall measure the loss allowance for a financial instrument
Notes to the financial statements Page 12
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
at an amount equal to the lifetime expected credit losses. If the credit risk has increased significantly since initial
recognition and the credit impairment has occurred, it is in the third stage, and the company shall measure the loss
allowance for a financial instrument at an amount equal to the lifetime expected credit losses.
The Company may assume that the credit risk on a financial instrument has not increased significantly since initial
recognition if the financial instrument is determined to have low credit risk at the reporting date and measure the loss
allowance for that financial instrument at an amount equal to 12-month expected credit losses..
The Company shall recognize the amount of expected credit losses or reversal in profit or loss. For debt instruments
held at fair value through other comprehensive income, the Company shall recognize the amount of expected credit
losses or gains in profit or loss, and adjust other comprehensive income.
For note receivables, account receivables and asset contracts, whether a significant financing component is contained
or not, the Company shall always measure the loss allowance at an amount equal to lifetime expected credit losses.
The impairment test shall be assessed individually for account receivables if there is evidence indicating that the
receivables have been impaired, and for others applicable to individual assessments to recognise the expected credit
losses and individual impairment.
For accounts receivable that do not have objective evidence of impairment or when individual financial assets cannot
be used to estimate expected credit losses at reasonable cost, the Company shall divide receivables based on the credit
risk characteristics into different portfolio and calculate expected credit loss based on portfolios.
The recognition of expected credit losses for the receivables in portfolio：
Items Criteria for portfolio Recognition method for expected credit losses
The Company shall, based on past events, current conditions and
Account receivables – Similar credit
forecasts of future economic conditions, calculate expected credit losses
Aging analysis characteristics for
using comparison table of accounts receivables aging analysis and
method similar aging
lifetime expected credit loss ratio.
The Company shall, based on past events, current conditions and
Similar credit
Other receivables – forecasts of future economic conditions, calculate expected credit losses
characteristics for
Aging analysis method using comparison table of other receivables aging analysis and lifetime
similar aging
expected credit loss ratio.
Account receivables and other receivables - Aging analysis method for lifetime expected credit loss ratio:
Notes to the financial statements Page 13
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Expected credit loss ratio for Expected credit loss ratio for
Aging
accounts receivable (%) other receivables (%)
Within 1 year (inclusive)
1-2 years (inclusive) 5.00 5.00
2-3 years (inclusive) 20.00 20.00
Over 3 years 100.00 100.00
10. Inventory
1. Inventory classification
Inventories include material in transit, raw material, low-valued consumables, finished goods, work in process,
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
inventory 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 the Company holds more
inventories than the quantities subscribed in the sales contract, the net realizable value of the excessive part of the
inventories shall be calculated on the ground of the general sales price.
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 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.
Notes to the financial statements Page 14
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
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.
11. Assets hold for sales
The Company classifies non-current assets or disposal asset groups when the assets meet the following criterion into
holding categories for sale simultaneously:
(1) According to the practice of selling such assets or disposal asset groups in similar transactions, they can be sold
immediately under current conditions;
(2) The sale of assets is highly probable, as the company has already made a resolution on a sale plan and obtained a
certain purchase commitment, and the transaction is expected to be completed within one year. The relevant
regulations that the assets can be sold have been approved by relevant authorities or regulatory authorities of the
Company.
12. Long-term equity investment
1. Criteria of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about
the relevant activities require the unanimous consent of the parties sharing control. If the Company and other joint
venture have joint control of the investee and have rights to the net assets of the investee, the investee is a joint venture
of the Company.
Significant influence is the power to participate in the financial and operating policy decisions of the investee but not
control or join control of those policies. If the Company could exert significant influence over the investee, the investee
is the associate of the Company.
2. The initial cost of long-term equity investment from business acquisition
(1) Long-term equity investment from business acquisition
For a business combination under common control, if the consideration of the combination is satisfied by paying cash,
transfer of non-cash assets or assumption of liabilities and 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
Notes to the financial statements Page 15
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
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.
For a business combination not under common control, the initial investment cost of the long-term equity investment
shall be the acquisition cost at the acquisition date. When an investor becomes capable of exercising control over an
investee due to additional investment or other reasons, the initial investment cost under the cost method shall be the
carrying amount of previously-held equity investment together with the additional investment cost.
(2) The initial cost of the long-term equity investment other than from business acquisition
The initial cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost which
is actually paid.
The initial cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fair value
of the equity securities issued.
If the exchange of non-monetary assets is commercial in nature and the fair values of both the assets received and
surrendered can be reliably measured, the fair value of the assets surrendered shall be used as the basis for determining
the cost of the assets received, unless there is any exact evidence showing that the fair value of the assets received is
more reliable. Where any non-monetary assets transaction does not meet the conditions as prescribed above, the
carrying value and relevant payable taxes of the assets surrendered shall be the initial cost of the assets received.
The initial cost of a long-term equity investment obtained by debt restructuring shall be ascertained on the basis of fair
values.
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
Notes to the financial statements Page 16
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
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.
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
according to the Company’s accounting principles and operating period based on the fair values of the investee’s
identifiable net assets at the acquisition date. During the holding period, if the investee makes consolidated financial
statements, the Company shall calculate its share based on the investee’s net profit, other comprehensive income and
the amount of other owners' equity attribute to the investee in the consolidated financial statements.
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. 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 3 (5) “The
accounting treatment for Business combination under/now under common control” and Note 3 (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
Notes to the financial statements Page 17
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
When disposing 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.
When the Company can no longer exercise control over an investee due to partial disposal of equity investment or due
to decrease of shareholding ratio because of additional investment by other investors, 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:
Notes to the financial statements Page 18
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Recognition and Measurement” after disposal, other comprehensive income and other owner’s interests previously
recognized shall be transferred to profit or loss in full.
13. Investment property
Investment property refers to real estate held for the purpose of earning rent or capital appreciation, or both, including
leased land use rights, land use rights held and prepared for transfer after appreciation, and leased buildings ( Buildings
that are leased after completion of self-construction or development activities and buildings that are being used for
rental in the future during construction or development).
The company uses the cost model to measure the existing investment property. For investment property measured
according to the cost model - the rental building adopts the same depreciation policy as the fixed assets of the company,
and the land use right for rental is amortized according to the same amortization policy as the intangible assets.
14. Fixed assets
1. Recognition of Fixed assets
The term "fixed assets" refers to the tangible assets held for the sake of producing commodities, rendering labor service,
renting or business management and of which useful life is in excess of one fiscal year. No fixed asset may be
recognized unless it simultaneously meets the conditions as follows:
(1) The economic benefits pertinent to the fixed asset are likely to flow into the enterprise; and
(2) The cost of the fixed asset can be measured reliably.
2. Fixed assets depreciation
Fixed assets are depreciated under the straight line method. The depreciation rate is determined according to the
category of assets, the useful life and the expected residual rate. If the components of the fixed assets have different
useful lives or provide the economic benefits in a different way, then different depreciation rate or method shall be
applied and the depreciation of the components shall be calculated separately.
Fixed assets acquired under financial leasing is depreciated over the useful life if it is reasonably certain that the
ownership of the leased assets will be acquired upon expiry of lease, or over the shorter of lease term and useful life if
it is not reasonably certain that the ownership of the leased assets will be acquired upon expiry of lease.
Details of classification, depreciation period, residual value rate and annual depreciation rate are as follows:
Depreciation Residual Value Rate Depreciation Rate
Category Depreciation method
Period (%) (%)
Plants and Buildings straight line method 8-40 years 0.00 2.50-12.50
Machinery straight line method 4-18 years 3.00 5.39-24.25
Notes to the financial statements Page 19
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Transportation and other straight line method
5-18 years 3.00 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.
15. 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 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.
16. Borrowing costs
1. Principle of the recognition of capitalized borrowing costs
The borrowing costs shall include interest on borrowings, amortization of discounts or premiums on borrowings,
ancillary expenses, and exchange balance on foreign currency borrowings.
Where the borrowing costs incurred to an enterprise can be directly attributable to the acquisition and construction or
production of assets eligible for capitalization, it shall be capitalized and recorded into the costs of relevant assets.
Other borrowing costs shall be recognized as expenses on the basis of the actual amount incurred, and shall be
recorded into the current profits and losses.
Notes to the financial statements Page 20
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Assets eligible for capitalization refer to the fixed assets, investment real estate, inventories and other assets, of which
the acquisition and construction or production may take quite a long time to get ready for its intended use or for sale.
The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements:
(1) The asset disbursements have already incurred, which shall include cash, transferred non-cash assets or interest
bearing debts paid for the acquisition and construction or production activities for preparing assets eligible for
capitalization;
(2) The borrowing costs has already incurred; and
(3) The acquisition and construction or production activities which are necessary to prepare the asset for its intended
use or sale have already started.
2. The capitalization period of borrowing costs
The capitalization period shall refer to the period from the commencement to the cessation of capitalization of the
borrowing costs, excluding the period of suspension of capitalization of the borrowing costs.
When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the
capitalization of the borrowing costs shall be ceased.
Where each part of a qualified asset under acquisition and construction or production is completed separately and is
ready for use, the capitalization of the borrowing costs in relation to this part of asset shall be ceased.
Where each part of an asset under acquisition and construction or production is completed separately and is ready for
use or sale during the continuing construction of other parts, but it cannot be used or sold until the asset is entirely
completed, the capitalization of the borrowing costs shall be ceased when the asset is completed entirely.
3. The suspension of capitalization of borrowing costs
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption
period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. If the interruption is a
necessary step for making the qualified asset under acquisition and construction or production ready for the intended
use or sale, the capitalization of the borrowing costs shall continue. The borrowing costs incurred during such period
shall be recognized as expenses, and shall be recorded into the profits and losses of the current period, till the
acquisition and construction or production of the asset restarts.
4. Method of calculating the 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
Notes to the financial statements Page 21
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
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.
17. Intangible Assets
1. Measurement of Intangible Assets
(1) Initial measurement is based on cost upon acquisition
The cost of an intangible asset on acquisition include the purchase price, relevant taxes and other necessary
disbursements which may be directly attributable to bringing the intangible asset to the conditions for the expected
purpose. If the payment for an intangible asset is delayed beyond the normal credit conditions and it is of the financing
nature, the cost of the intangible asset shall be determined on the basis of the present value of the purchase price.
For intangible assets obtained from debt restructuring as settlement of liabilities from debtors, initial recognition is
based on its fair value, and the difference between the debt restructured and the fair value of the intangible assets are
recognized in the current profit and loss.
For intangible assets obtained from non-monetary transactions with commercial substance, and the fair value of 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
Notes to the financial statements Page 22
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
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.
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.
4. 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.
18. Impairment of long-term assets
For long-term assets under the cost model such as long-term equity investments, Investment property, fixed assets,
construction in progress, intangible assets with limited useful lives etc., the Company shall perform impairment tests at
the period end if there is clear indication of impairment. If the recoverable amounts of long-term assets are less than
their carrying amounts, the carrying amounts of the assets shall be written down to their recoverable amounts. The
write-downs are recognized as impairment losses and charged to current profit and loss. The recoverable amounts of
long-term assets are the higher of their fair values less costs to sell and the present values of the future cash flows
expected to be derived from the assets. The Company shall estimate its recoverable amount on an individual basis.
Where it is difficult to do so, it shall determine the recoverable amount of the group assets on the basis of the asset
group to which the asset belongs. The term "group assets” refers to a minimum combination of assets by which the
cash flows could be generated independently
The goodwill shall be subject to an impairment test at least at the end of each year.
When the Company makes an impairment test of assets, it shall, as of the purchasing day, apportion the carrying value
of the business reputation formed by merger of enterprises to the relevant asset groups by a reasonable method. Where
it is difficult to do so, it shall be apportioned to the relevant combinations of asset groups. When apportioning the
carrying value of the business reputation to the relevant asset groups or combinations of asset groups, it shall be
Notes to the financial statements Page 23
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
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.
19. Long-term deferred expense
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
20. 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.
Notes to the financial statements Page 24
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
2. Accounting treatment of post-employment benefits
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.
3.Accounting treatment of termination benefits
The Company 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: when the Company cannot unilaterally
withdraw the offer of termination benefits because of an employment termination plan or a curtailment proposal; or
when the Company recognizes costs or expenses related to a restructuring that involves the payment of termination
benefits.
21. Estimated liabilities
1. Recognition criteria of estimated liabilities
The obligation pertinent to a Contingency (litigation, guarantees, loss contract, restructuring) shall be recognized as an
estimated liability when the following conditions are satisfied simultaneously:
(1) That obligation is a current obligation of the enterprise;
(2) It is likely to cause any economic benefit to flow out of the enterprise as a result of performance of the obligation;
and
(3) The amount of the obligation can be measured in a reliable way.
2. Measurement of estimated liabilities
The estimated debts shall be initially measured in accordance with the best estimate of the necessary expenses for the
performance of the current obligation.
To determine the best estimate, an enterprise shall take into full consideration of the risks, uncertainty, time value of
money, and other factors pertinent to the Contingencies. If the time value of money is of great significance, the best
estimate shall be determined after discounting the relevant future outflow of cash.
The best estimate shall be conducted in accordance with the following situations, respectively:
If there is a continuous range for the necessary expenses and if all the outcomes within this range are equally likely to
occur, the best estimate shall be determined in accordance with the average estimate within the range, that is, the
average of the upper and lower limit.
Notes to the financial statements Page 25
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
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.
22. Revenue
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 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.
3.Recognition Criteria for the Revenue from alienating of Assets Use Rights
When it is probable that economic benefits in relation to the transaction will flow into the enterprise; and the amount
of revenues can be measured reliably. The Company shall ascertain the amount of revenues from the transfer of
Assets Use Right based on the following circumstances respectively:
(1) Interest income shall be calculated based on the duration of which the Company's cash is used by others and the
actual interest rate; or
(2) Royalty revenue shall be calculated based on the period and method of charging as stipulated in the relevant
contract or agreement.
Notes to the financial statements Page 26
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
23. Government Subsidies
A government subsidy means the monetary or non-monetary assets obtained free of charge by the Company from the
government. Government subsidies consist of the government subsidies pertinent to assets and government subsidies
pertinent to income.
The criteria and accounting treatment of government subsidies pertinent 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.
Recognition
Government subsidies related to assets shall be recognized by deducting the subsidies at the caring amount of
the assets or recognized as deferred income. Subsidies that recognized as deferred income shall be recognized in
profit or loss over the periods during the useful lives of the relevant assets.
Accounting treatment
Government subsidies related to assets shall be recognized by deducting the subsidies at the caring 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 recorded in Other Income. Subsidies that unrelated to daily activities should
be recorded in Non-operating Income).
The criteria and accounting treatment of government subsidies pertinent to income.
The government subsidy related to income refers to the government subsidy other than the government subsidy
related to the asset.
Recognition
The government subsidies related to incomes to compensate future expenses, shall be recognized as deferred
income and transferred to current profit or loss. Government subsidies to compensate expenses or losses already
incurred shall be recognized in current profit and loss.
Accounting treatment
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 recorded in Other
Income. Subsidies that unrelated to daily activities should be recorded in Non-operating Income) in the period
during which the expenses compensation is recognized or deduct relevant cost or loss. Government subsidies to
compensate expenses or losses already incurred shall be recognized in current profit and loss (Subsidies related
to daily activities should be recorded in Other Income. Subsidies unrelated to daily activities should be recorded
in Non-operating Income) or deduct relevant cost or loss.
Notes to the financial statements Page 27
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
24. Deferred tax assets and deferred tax liabilities
An enterprise shall recognize the deferred income tax assets arising from a deductible temporary difference to the
extent of the amount of the taxable income which it is most likely to 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.
25. 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
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
Notes to the financial statements Page 28
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
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.
26. 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:
(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.
27. Change of significant accounting policy and accounting estimate
(1) Significant changes in accounting policies.
√ Applicable □ Not applicable
The contents and reasons Approval procedure The items affected and the amount
Notes to the financial statements Page 29
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
of accounting policy changes
“Notes receivable and accounts receivable” is separated into
"Notes receivable" and "Accounts receivable", amount for
(1) In Statement of Financial
current year is 4,518,016,226.76 and 614,718,839.21,
Position, “Notes receivable and
amount for previous year is 3,580,145,843.38 and
accounts receivable” is separated Approved by the fifth
639,482,481.45.
into "Notes receivable" and session of the eighth
“Notes receivable and accounts receivable” is separated into
"Accounts receivable"; The board of directors
"Notes receivable" and "Accounts receivable", amount for
comparative data is adjusted
current year is 4,296,253,321.51 and 402,397,751.85,
accordingly.
amount for previous year is 3,356,020,598.89 and
409,553,059.27.
Adjust the “asset impairment loss” in the income statement
(2) Adjust the “credit impairment
to add the operating profit, amount for the current year is
loss” and “asset impairment loss” in Approved by the fifth
0.00, amount for previous year is 20,917,963.64;
the income statement to add the session of the eighth
Adjust the “credit impairment loss” in the income statement
operating profit, and the loss is board of directors
to add the operating profit, amount for the current year is
listed as “-”.
3,751,513.83.
(1) New Financial Instrument guidelines
Since January 1, 2019, the company has implemented the “Accounting Standards for Business Enterprises No. 22 –
Recognition and Measurement of Financial Instruments”, “Accounting Standards for Business Enterprises No. 23 – Transfer
of Financial Assets” and “Accounting Standards for Business Enterprises No. 24 - Hedge Accounting” and “Accounting
Standards for Business Enterprises No. 37 - Financial Instruments Disclosure” (hereinafter referred to as "New Financial
Instruments Guidelines") revised by the Ministry of Finance in 2017.
In terms of the classification and measurement of financial assets, the new financial instrument standard requires financial
assets to be classified as subsequently measured at amortised cost, fair value through other comprehensive income or fair
value through profit or loss on the basis of both the entity’s business model for managing the financial assets and the
contractual cash flow characteristics of the financial asset and eliminates the classification of loans, receivables, held to
maturity investments, and available for sale financial assets in the original financial instruments. An investment in an equity
instrument is generally classified as a financial asset at fair value through profit or loss. It also allows a non-tradable equity
instrument investment to be designated as a financial asset at fair value through other comprehensive income. The
designation is irrevocable and the accumulated fair value changes previously recognised in other comprehensive income are
not carried forward to profit or loss. In respect of impairment, the requirements of the new financial instrument standard for
impairment are applied to financial assets measured at amortised cost, financial assets measured at fair value through other
comprehensive income, lease receivables and financial guarantee contracts. The new financial instrument standard requires
the use of an expected credit loss model to confirm credit loss provisions to replace the original credit loss model. The new
impairment model adopts a three-stage model. According to the relevant item, whether the credit risk has increased
significantly since the initial recognition, the loss allowance is measured at an amount equal to 12-month expected credit
losses or an amount equal to the lifetime expected credit losses. For receivables and long-term receivables formed by
transactions regulated by the income standard, as well as the receivables of finance leases formed by transactions regulated
by the “Accounting Standards for Business Enterprises No. 21 – Leases”, the Company shall measure the loss allowance at
an amount equal to lifetime expected credit losses.
Notes to the financial statements Page 30
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
If the recognition and measurement of financial instruments before January 1, 2019 is inconsistent with the requirements of
the new financial instruments, the company shall make retrospective adjustments in accordance with the requirements of the
new financial instruments guidelines. The company does not make adjustments when it involves inconsistency between the
previous comparative financial statement data and the new financial instrument guidelines. The difference between the
original book value of the financial instrument and the new book value on the date of the implementation of the new
financial instrument's standard is included in retained earnings or other comprehensive income as of January 1, 2019.
(2) The revision of the format for the issuance of the financial statements
Ministry of Finance issued “Notice of the Ministry of Finance on the revision of the format for the issuance of the financial
statements of the general enterprise for the year 2019” (Cai Kuai 2019 No.6, hereinafter referred to as “Cai Kuai No. 6
Notice”) on 30 April 2019, which revised the format of financial statement for the general enterprise. The major impact of
the implementation of the above regulations are as above.
(2) Significant changes in accounting estimates
□ Applicable √ Not applicable
(3) Adjustments of beginning balance due to the first time implementation of the new financial instruments
guidelines, new income standards, new lease standards
√ Applicable □ Not applicable
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unit: yuan
Items Dec 31st 2018 Jan 1st 2019 Adjustment amount
Current assets:
Cash at bank and on hand 16,567,471,755.77 16,567,471,755.77
Settlement provisions
Capital lent
Financial assets held for trading
Financial assets at fair value through profit
or loss
Derivative financial assets
Notes receivable 3,580,145,843.38 3,580,145,843.38
Accounts receivable 639,482,481.45 639,482,481.45
Receivables financing
Prepayments 1,321,537,514.78 1,321,537,514.78
Premium receivable
Reinsurance accounts receivable
Notes to the financial statements Page 31
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Receivable deposit for reinsurance contract
Other receivables: 202,763,964.98 202,763,964.98
Including: Interest receivables 11,608,705.43 11,608,705.43
Dividend receivables
Redemptory financial assets for sale
Inventories 10,677,747,112.40 10,677,747,112.40
Contract assets
Assets classified as held for sale
Non-current assets due within one year
Other current assets 292,119,771.13 292,119,771.13
Total current assets 33,281,268,443.89 33,281,268,443.89
Non-current assets:
Loan and advances issued
Debt investments
Available-for-sale financial assets 1,041,824,829.00 -1,041,824,829.00
Other debt investments
Held-to-maturity investments
Long-term receivables
Long-term equity investments 2,455,681.55 2,455,681.55
Other equity instrument investments 1,041,824,829.00
Other non-current financial assets
Investment properties
Fixed assets 23,924,504,539.97 23,924,504,539.97
Construction in progress 836,594,457.82 836,594,457.82
Productive biological assets
Oil and gas assets
Right of use assets
Intangible assets 278,062,441.04 278,062,441.04
Development expenditure
Goodwill
Notes to the financial statements Page 32
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Long-term deferred expenses
Deferred tax assets 191,452,547.21 191,452,547.21
Other non-current assets 76,341,975.35 76,341,975.35
Total non-current assets 26,351,236,471.94 26,351,236,471.94
Total assets 59,632,504,915.83 59,632,504,915.83
Current Liabilities:
Short-term loans 11,938,490,375.85 11,938,490,375.85
Loan from central bank
Absorbed deposit and interbank deposit
Financial liabilities held for trading
Financial liabilities at fair value through
profit or loss
Derivative financial liabilities
Note payables 10,013,192,014.02 10,013,192,014.02
Account payables 5,522,042,811.65 5,522,042,811.65
Advance from customers 3,331,854,098.42 3,331,854,098.42
Financial assets sold for repurchase
Deposits from customers and interbank
Acting trading securities
Acting underwriting securities
Employee benefits payable 51,466,231.72 51,466,231.72
Current tax liabilities 515,752,369.68 515,752,369.68
Other payables 862,511,178.96 862,511,178.96
Including: Interest payables 9,658,681.99 9,658,681.99
Dividend payables
Handling charges and commission payable
Reinsurance accounts payable
Contract liabilities
Liabilities held for sale
Non-current liabilities due within one year 350,965,576.32 350,965,576.32
Other current liabilities
Notes to the financial statements Page 33
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Total current liabilities 32,586,274,656.62 32,586,274,656.62
Non-current liabilities:
Provision for insurance contract
Long-term loans 7,083,640,094.16 7,083,640,094.16
Bonds payable
Including: Preferred stock
Perpetual bond
Lease liabilities
Long-term payables 13,686,705.92 13,686,705.92
Long-term employee benefits payables
Estimated liabilities
Deferred income 289,499,002.97 289,499,002.97
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 7,386,825,803.05 7,386,825,803.05
Total liabilities 39,973,100,459.67 39,973,100,459.67
Shareholders’ equity:
Share capital 3,875,371,532.00 3,875,371,532.00
Other equity instruments
Including: Preferred stock
Perpetual bond
Capital reserves 12,343,209,847.29 12,343,209,847.29
Less: treasury shares
Other comprehensive income
Special reserves 683,937.71 683,937.71
Surplus reserves 961,105,529.85 961,105,529.85
General risk reserves
Undistributed profits 1,945,887,269.82 1,945,887,269.82
Total equity attributable to equity holders of the
parent company
19,126,258,116.67 19,126,258,116.67
Non-controlling interests 533,146,339.49 533,146,339.49
Total shareholder’s equity 19,659,404,456.16 19,659,404,456.16
Total liabilities and shareholder’s equity 59,632,504,915.83 59,632,504,915.83
Notes to the financial statements Page 34
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
BALANCE SHEET OF THE PARENT COMPANY
Unit: Yuan
Items Dec 31st 2018 Jan 1st 2019 Adjustment amount
Current assets:
Cash at bank and on hand 15,536,305,375.00 15,536,305,375.00
Financial assets held for trading
Financial assets at fair value through profit
or loss
Derivative financial assets
Notes receivable 3,356,020,598.89 3,356,020,598.89
Accounts receivable 409,553,059.27 409,553,059.27
Receivables financing
Prepayments 1,309,194,738.97 1,309,194,738.97
Other receivables 235,037,391.46 235,037,391.46
Including: Interest receivables 9,815,280.04 9,815,280.04
Dividend receivables
Inventories 8,681,362,081.72 8,681,362,081.72
Contract assets
Assets classified as held for sale
Non-current assets due within one year
Other current assets 193,989,096.20 193,989,096.20
Total current assets 29,721,462,341.51 29,721,462,341.51
Non-current assets:
Debt investments
Available-for-sale financial assets 1,041,624,829.00 -1,041,624,829.00
Other debt investments
Held-to-maturity investment
Long-term receivables
Long-term equity investments 2,016,281,902.16 2,016,281,902.16
Other equity instrument investments 1,041,624,829.00 1,041,624,829.00
Other non-current financial assets
Investment properties
Fixed assets 22,035,187,328.57 22,035,187,328.57
Construction in progress 825,553,510.15 825,553,510.15
Productive biological assets
Oil and gas assets
Right of use assets
Intangible assets 148,776,177.96 148,776,177.96
Development expenditure
Goodwill
Long-term deferred expenses
Notes to the financial statements Page 35
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Deferred tax assets 96,220,003.00 96,220,003.00
Other non-current assets 76,341,975.35 76,341,975.35
Total non-current assets 26,239,985,726.19 26,239,985,726.19
Total assets 55,961,448,067.70 55,961,448,067.70
Current Liabilities:
Short-term loans 10,624,270,375.85 10,624,270,375.85
Financial assets held for trading
Financial liabilities at fair value through
profit or loss
Derivative financial liabilities
Notes payable 9,213,748,427.22 9,213,748,427.22
Accounts payable 5,940,816,426.48 5,940,816,426.48
Advance from customers 3,189,143,565.45 3,189,143,565.45
Contract liabilities
Employee benefits payable 49,378,095.47 49,378,095.47
Current tax liabilities 507,003,883.57 507,003,883.57
Other payables 538,051,513.13 538,051,513.13
Including: Interest payables 7,341,833.33 7,341,833.33
Dividend payables
Liabilities held for sale
Non-current liabilities due within one year 350,965,576.32 350,965,576.32
Other current liabilities
Total current liabilities 30,413,377,863.49 30,413,377,863.49
Non-current liabilities:
Long-term loans 7,083,640,094.16 7,083,640,094.16
Bonds payable
Including: Preferred stock
Perpetual bond
Lease liabilities
Long-term payables 13,686,705.92 13,686,705.92
Long-term employee benefits payable
Estimated liabilities
Deferred incomes 289,499,002.97
Deferred tax liabilities 289,499,002.97
Other non-current liabilities
Total non-current liabilities 7,386,825,803.05 7,386,825,803.05
Total liabilities 37,800,203,666.54 37,800,203,666.54
Shareholders’ equity:
Share capital 3,875,371,532.00 3,875,371,532.00
Other equity instruments
Including: Preferred stock
Perpetual bond
Notes to the financial statements Page 36
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Capital reserves 11,923,058,165.17 11,923,058,165.17
Less: treasury shares
Other comprehensive income
Special reserves 525,218.48 525,218.48
Surplus reserves 961,105,529.85 961,105,529.85
Undistributed profits 1,401,183,955.66 1,401,183,955.66
Total shareholder’s equity 18,161,244,401.16 18,161,244,401.16
Total liabilities and shareholder’s equity 55,961,448,067.70 55,961,448,067.70
VI. Taxes
1. Major type of taxes and corresponding tax rates
Tax Taxation Method Tax Rate
The balance of output VAT calculated
based on product sales and taxable services 6%，10%、16%(Jan to Mar in 2019)
Value-added Tax(VAT) revenue in accordance with the tax laws
after subtracting the deductible input VAT 6%, 9%, 13% (Apr to Jun in 2019)
of the period
Based on VAT and business tax actually
City maintenance and construction tax 7%, 5%
paid
Enterprise income tax Based on taxable profit 25%
Notes to whether there is different income tax rate
Tax payer Income tax rate
VII. Notes to the consolidated financial statements
1. Cash at bank and on hand
Items Ending balance Beginning balance
Cash on hand 5,346.25 4,839.95
Cash at bank 11,788,917,223.26 11,752,543,782.02
Other monetary funds 5,156,849,822.92 4,814,923,133.80
Total 16,945,772,392.43 16,567,471,755.77
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 4,538,099,822.92 3,794,647,133.80
Margin for letter of credit 165,270,000.00 105,000,000.00
Time deposit or notice deposit for
453,480,000.00 915,276,000.00
guarantee
Total 5,156,849,822.92 4,814,923,133.80
Notes to the financial statements Page 37
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
2. Notes receivable
(1) Notes receivable disclosed by category
Items Ending balance Beginning balance
Bank acceptance bill 4,361,187,029.40 3,540,317,759.10
Commercial acceptance bill 156,829,197.36 39,828,084.28
Total 4,518,016,226.76 3,580,145,843.38
(2) The pledged acceptance bill at the end of the period
There is no pledged acceptance bill at the end of the period.
(3) The amount of Notes receivable endorsed over but not yet matured at the year-end.
Items Derecognized ending balance Unrecognized ending balance
Bank acceptance bill 7,280,230,450.89
Commercial acceptance bill
Total 7,280,230,450.89
(4) No Notes receivable has been transferred into accounts receivable due to inability of drawer to meet
acceptance bill at the year-end.
3. Accounts receivable
(1) Accounts receivable disclosed by category
Ending balance
Carrying amount Provision for bad debts
Items
Percentage Bad debts Book value
Amount Amount
(%) ratio (%)
Accounts receivable tested for
47,762,337.18 6.02 47,762,337.18 100.00
impairment individually
Including:
Accounts receivable tested for
745,278,892.11 93.98 130,560,052.90 17.52 614,718,839.21
impairment by portfolio
Including:
Total 793,041,229.29 100.00 178,322,390.08 22.49 614,718,839.21
Items Beginning balance
Notes to the financial statements Page 38
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Carrying amount Provision for bad debts
Bad debts ratio Book value
Amount Percentage (%) Amount
(%)
Accounts receivable tested for
47,762,337.18 5.82 47,762,337.18 100.00
impairment individually
Including:
Accounts receivable tested for
773,432,447.14 94.18 133,949,965.69 17.32 639,482,481.45
impairment by portfolio
Including:
Total 821,194,784.32 100.00 181,712,302.87 22.13 639,482,481.45
Accounts receivables individually significant and tested for impairment individually
Ending balance
Company Provision for bad Bad debts ratio
Carrying amount Reason
debts (%)
Accounts receivables tested for impairment by portfolio
Ending balance
Items
Carrying amount Provision for bad debts Bad debts ratio (%)
Notes:
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit
losses, please refer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Not applicable
Accounts receivable disclosed by Aging
Unit: yuan
Aging Ending balance
Within 1 year (inclusive) 538,645,725.73
1 – 2 year 56,752,847.90
2 – 3 year 27,697,384.96
Over 3 years 169,945,270.70
Total 793,041,229.29
(2) Information of provision, reversal or recovery of bad debts of current period.
The provision of bad debts of current period is RMB 3,389,912.79.
(3) Top five debtors at the year-end
Company Ending balance
Notes to the financial statements Page 39
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Percentage of total Accounts receivable Provision for
Amount
(%) bad debts
The first 296,599,328.97 37.40
The second 106,438,276.12 13.42
The third 62,482,368.63 7.88 6,792,099.51
The fourth 47,762,337.18 6.02 47,762,337.18
The fifth 41,687,479.04 5.26
Total 554,969,789.94 69.98 54,554,436.69
4. Receivables financing
Unit: yuan
Items Ending balance Beginning balance
Changes in receivables financing and fair value during the current period
□ Applicable √ Not applicable
If the provision for bad debts of receivables financing is made in accordance with the general model of expected credit
losses, please refer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Not applicable
5. Prepayments
(1) Prepayments disclosed by aging
Ending balance Beginning balance
Aging
Amount Percentage (%) Amount Percentage (%)
Within 1 year (inclusive) 1,311,404,160.39 99.77 1,318,136,339.11 99.74
1-2 years (inclusive) 2,226,256.90 0.17 2,494,489.34 0.19
2-3 years (inclusive) 833,987.64 0.06 901,900.77 0.07
Over 3 years 4,785.56 0.00
Total 1,314,464,404.93 100.00 1,321,537,514.78 100.00
Notes: As of June 30, 2019, there were no outstanding prepayments of over 1 year.
(2) Top five prepaid companies at the year-end
Name of the company Amount Percentage (%)
The First 698,463,245.75 53.14
The Second 98,729,978.44 7.51
The Third 87,022,226.90 6.62
Notes to the financial statements Page 40
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
The Fourth 79,143,421.14 6.02
The Fifth 20,957,800.88 1.59
Total 984,316,673.11 74.88
6. Other receivables
Items Ending balance Beginning balance
Interest receivables 13,872,107.84 11,608,705.43
Dividend receivables
Other receivables 191,594,542.93 191,155,259.55
Total 205,466,650.77 202,763,964.98
(1) Interest receivable
1) Interest receivable disclosed by category
Items Ending balance Beginning balance
Deposit interest 13,872,107.84 11,608,705.43
Total 13,872,107.84 11,608,705.43
(2) Other receivables
1) Other receivables disclosed by nature
Nature Ending balance Beginning balance
Accounts 204,915,146.72 203,695,979.62
Margin and deposit 2,286,886.27 2,238,972.26
Others 48,975,036.85 50,164,435.62
Total 256,177,069.84 256,099,387.50
2) Provision of bad debt
Unit: yuan
The first stage The second stage The third stage
lifetime expected credit lifetime expected credit
Provision of bad debt 12-month expected losses losses Total
credit losses (credit impairment has not (credit impairment has
occurred) already occurred)
The balance of
January 1, 2019 in this —— —— —— ——
reporting period
Significant changes of provision during the current reporting period
□ Applicable √ Not applicable
Notes to the financial statements Page 41
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Other receivables disclosed by Aging
Unit: yuan
Aging Ending balance
Within 1 year (inclusive) 158,226,535.01
1 – 2 year 4,278,962.95
2 – 3 year 34,453,741.40
Over 3 years 59,217,830.48
Total 256,177,069.84
3) Top five debtors at the year-end
Percentage of Provision
Nature or
Company Amount Aging total other for bad
content
receivables (%) debts
The First Accounts 7,718,029.34 within 1 year 2.86
The Second Accounts 4,807,446.56 within 1 year 1.78
The Third Accounts 4,514,286.35 2-3 years 1.67 2,138,916.66
The Fourth Accounts 4,341,257.18 2-3 years 1.61 868,251.44
The Fifth Accounts 3,526,146.54 within 1 year 1.31
Total 24,907,165.97 9.23 3,007,168.10
7. Inventories
Whether implement the new income standard or not.
□ Applicable √ Not applicable
(1) Inventories disclosed by category
Ending balance Beginning balance
Items
Carrying amount Impairment Book value Carrying amount Impairment Book value
Raw material and
6,468,803,309.62 26,986,533.69 6,441,816,775.93 5,509,216,101.37 26,986,533.69 5,482,229,567.68
main material
Work in process and
self-made
1,402,852,181.92 1,402,852,181.92 1,365,365,191.33 29,012,489.61 1,336,352,701.72
semi-finished
product
Finished products 4,123,737,309.00 827,243.38 4,122,910,065.62 3,888,124,260.41 28,959,417.41 3,859,164,843.00
Total 11,995,392,800.54 27,813,777.07 11,967,579,023.47 10,762,705,553.11 84,958,440.71 10,677,747,112.40
Whether the company is required to comply with the disclosure requirements of the Shenzhen Stock Exchange Industry
Information Disclosure Guide No. 4 - Listed Companies Engaged in Seed Industry and Planting Business
□ Applicable √ Not applicable
Notes to the financial statements Page 42
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
(2) Impairment of inventory
Increase Decrease
Category Beginning balance Write-back or Ending balance
Provision Others Others
write-off
Raw material and main
26,986,533.69 26,986,533.69
material
Work in process and 29,012,489.61
self-made semi-finished 29,012,489.61
product
Finished products 28,959,417.41 28,132,174.03 827,243.38
Total 84,958,440.71 57,144,663.64 27,813,777.07
8. Other current assets
Whether implement the new income standard or not.
□ Applicable √ Not applicable
Items Ending balance Beginning balance
Prepaid enterprise income tax 184,668,751.64 189,634,393.98
VAT input tax 62,944,230.59 102,485,377.15
Total 247,612,982.23 292,119,771.13
Notes to the financial statements Page 43
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
9. Long-term equity investment
Increase/decrease
Investment Amount Total
Beginning Gains and Ending Provision Impairment
Investees Reduce Adjustment Other Declaration of
Balance Add Losses Balance Total Ending
Investme Comprehen Equity Cash Dividends Others
Investment Recognized Impairment Balance
nt sive Income Changes or Profit
under the
Equity Method
Joint Venture
Zhejiang Bengang
Jingrui Steel 2,455,681.55 25,907.49 2,481,589.04
Processing Co., Ltd.
Subtotal 2,455,681.55 25,907.49 2,481,589.04
Total 2,455,681.55 25,907.49 2,481,589.04
Notes to the financial statements Page 44
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
10. Other equity investment
Items Ending Balance Beginning Balance
Suzhou Bengang Industrial Co., Ltd. 3,888,980.00
Sinosteel Shanghai Steel Processing Co., Ltd. 0.00
Northeast Special Steel Group Co., Ltd. 1,037,735,849.00
Guangzhou Benpu Auto Board Sales Co., Ltd. 200,000.00
Total 1,041,824,829.00
11. Fixed assets
Items Ending balance Beginning balance
Fixed assets 22,672,967,771.15 23,924,504,539.97
Total 22,672,967,771.15 23,924,504,539.97
(1) Details of fixed assets
Transportation
Items Buildings Machinery equipment and Total
others
1．Total original value
(1) Beginning balance 12,174,491,765.86 43,551,735,976.27 902,527,777.12 56,628,755,519.25
(2) Increase in current period 7,596,518.16 7,596,518.16
Including: Purchase
Transferred from
7,596,518.16 7,596,518.16
construction in progress
Merging
Others
(3) Decrease in current period 28,441,077.44 362,164,072.02 1,076,210.06 391,681,359.52
Including: Disposal 28,441,077.44 362,164,072.02 1,076,210.06 391,681,359.52
Others
(4) Ending balance 12,146,050,688.42 43,197,168,422.41 901,451,567.06 56,244,670,677.89
2．Total accumulated depreciation
(1) Beginning balance 5,576,027,013.36 26,526,053,819.79 560,595,347.69 32,662,676,180.84
(2) Increase in current period 188,520,413.30 932,455,392.69 78,888,442.73 1,199,864,248.72
Including: Provision 188,520,413.30 932,455,392.69 78,888,442.73 1,199,864,248.72
Others -
(3) Decrease in current period 20,923,664.12 303,852,548.23 7,296,035.40 332,072,247.75
Including: Disposal 20,923,664.12 303,852,548.23 7,296,035.40 332,072,247.75
Others
(4) Ending balance 5,743,623,762.54 27,154,656,664.25 632,187,755.02 33,530,468,181.81
Notes to the financial statements Page 45
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Transportation
Items Buildings Machinery equipment and Total
others
3．Total impairment
(1) Beginning balance 38,948,079.36 2,626,719.08 41,574,798.44
(2) Increase in current period
Including: Provision
Others
(3) Decrease in current period 340,073.51 340,073.51
Including: Disposal 340,073.51 340,073.51
Others
(4) Ending balance 38,608,005.85 2,626,719.08 - 41,234,724.93
4．Total net book value of Fixed
assets
(1) Ending book value 6,363,818,920.03 16,039,885,039.08 269,263,812.04 22,672,967,771.15
(2) Beginning book value 6,559,516,673.14 17,023,055,437.40 341,932,429.43 23,924,504,539.97
(2) Temporary idle fixed assets
Items Original book value Accumulated depreciation Impairment Book value
Buildings 201,165,792.22 118,513,395.96 35,014,689.33 47,637,706.93
Machinery 1,224,688.89 1,149,022.46 75,666.43
Total 202,390,481.11 119,662,418.42 35,090,355.76 47,637,706.93
(3) Fixed assets leased out by operating lease
Items Book value
Buildings 9,460,723.71
Machinery 85,459.55
Total 9,546,183.26
(4) Fixed assets without property rights certificates at the end of the period
Items Book value Reason
Buildings 1,016,286,114.63 To be handled
Notes to the financial statements Page 46
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
12. Construction in progress
Items Ending balance Beginning balance
Construction in progress 1,355,784,359.63 831,693,471.71
Project materials 18,626,600.07 4,900,986.11
Total 1,374,410,959.70 836,594,457.82
(1) Details of construction in progress
Ending balance Beginning balance
Total net book
Items Total Total net book Total
Carrying amount Carrying amount value of Fixed
impairment value of Fixed assets impairment
assets
High Strength Cold Rolling Steel Renovation
43,856,840.06 43,856,840.06
Project
The Third Cold Rolling Work Hot-Dip
4,575,442.24 4,575,442.24
Galvanizing Production Line Project
The 360 Square Meter Sintering Machine 48,115,730.79 48,115,730.79 39,870,921.39 39,870,921.39
Energy Control Center Project 16,521,792.81 16,521,792.81 16,068,616.55 16,068,616.55
Renovation Project of Power Plant Three - Power
77,265,082.68 77,265,082.68 67,436,716.24 67,436,716.24
Plant.
Energy Saving And Environmental Protection
107,484,022.00 107,484,022.00 81,652,336.52 81,652,336.52
Reconstruction Of No.1 Converter Project
Modifying and Upgrading of No.2 Casting
71,055,463.93 71,055,463.93 67,751,518.71 67,751,518.71
machine in Hot steel plant
No. 5 blast furnace overhaul project (new No. 2
205,247,220.39 205,247,220.39 79,221,161.00 79,221,161.00
blast furnace)
Power plant 4-5# coke oven dry quenching waste
30,116,417.01 30,116,417.01 27,607,246.17 27,607,246.17
heat steam utilization project
1700 hot rolling perfect transformation 29,822,575.23 29,822,575.23 25,521,831.89 25,521,831.89
CCPP power generation project 66,004,363.05 66,004,363.05 24,961,721.54 24,961,721.54
Coking plant gas deamination and sulfur ammonia
34,800,566.05 34,800,566.05 34,300,566.05 34,300,566.05
maintenance project
360 square meter sintering machine waste heat
50,994,694.50 50,994,694.50 44,777,158.00 44,777,158.00
utilization
5#-7# Oxygen Generator Nitrogen Increase
28,911,871.30 28,911,871.30 21,715,145.18 21,715,145.18
Energy Saving Reconstruction
Dry dedusting of No. 7 blast furnace and energy
27,673,848.07 27,673,848.07 22,973,276.80 22,973,276.80
saving reform of TRT power generation
No. 6 blast furnace environmental protection
39,093,141.87 39,093,141.87 22,895,777.14 22,895,777.14
overhaul project
Other 474,245,287.65 474,245,287.65 254,939,478.53 254,939,478.53
Total 1,355,784,359.63 1,355,784,359.63 831,693,471.71 831,693,471.71
Notes to the financial statements Page 47
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
(2) Construction materials
Ending balance Beginning balance
Items
Carrying amount Impairment Book value Carrying amount Impairment Book value
Construction materials 18,626,600.07 18,626,600.07 4,900,986.11 4,900,986.11
Total 18,626,600.07 18,626,600.07 4,900,986.11 4,900,986.11
13. Intangible assets
(1) Details of intangible assets
Items Land use right Software Total
1．Total of original value
(1)Beginning balance 327,028,797.84 310,401.55 327,339,199.39
(2)Increase
Including: Purchase
Including: Internal R&D
Including: Increase in Mergers
Including: Others
(3)Decrease
Including: Disposal
Including: Others
(4)Ending balance 327,028,797.84 310,401.55 327,339,199.39
2．Total of Accumulated Amortization
(1)Beginning balance 49,176,692.15 100,066.21 49,276,758.36
(2)Increase 3,270,287.92 8,444.37 3,278,732.29
Including: Provision 3,270,287.92 8,444.37 3,278,732.29
Including: Others
(3)Decrease
Including: Disposal
Including: Others
(4)Ending balance 52,446,980.07 108,510.58 52,555,490.65
3．Total of Impairment
(1)Beginning balance
(2)Increase
Including: Provision
Including: Others
(3)Decrease
Including: Disposal
Including: Others
(4)Ending balance
4．Total of Net value
(1)Ending book value 274,581,817.77 201,890.97 274,783,708.74
(2)Beginning book value 277,852,105.69 210,335.35 278,062,441.04
Notes to the financial statements Page 48
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
14. Deferred tax asset and deferred tax liability
(1) Undedicated deferred tax asset
Ending balance Beginning balance
Items Deductible temporary Deductible temporary
Deferred tax asset Deferred tax asset
differences differences
Impairment 323,453,331.07 80,863,332.77 384,689,582.05 96,172,395.52
Internal unrealized profit 44,665,863.14 11,166,465.79 47,141,747.73 11,785,436.93
Differences of depreciation and
333,978,859.03 83,494,714.76 333,978,859.03 83,494,714.76
amortization
Total 702,098,053.24 175,524,513.32 765,810,188.81 191,452,547.21
(2) Unrecognized deferred tax assets
Items Ending balance Beginning balance
Deductible temporary differences 2,914,780.92 2,914,780.92
Deductible losses 667,057,769.20 1,112,718,371.26
Total 669,972,550.12 1,115,633,152.18
(3) The deductible loss of unrecognized deferred tax assets due in the following period
Items Ending balance Beginning balance Notes
Year 2020 639,818,319.71 1,085,478,921.77
Year 2021 11,436,302.83 11,436,302.83
Year 2022 1,000,766.72 1,000,766.72
Year 2023 14,802,379.94 14,802,379.94
Year 2024
Total 667,057,769.20 1,112,718,371.26
15. Other non-current assets
Whether implement the new income standard or not.
□ Applicable √ Not applicable
Items Ending balance Beginning balance
Prepaid of long-term assets 68,303,165.35 76,341,975.35
Total 68,303,165.35 76,341,975.35
Notes:
Notes to the financial statements Page 49
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
16. Short-term loans
(1) Classification of short-term loans
Items Ending balance Beginning balance
Pledge loans 48,262,375.85
Guaranteed loans 12,078,193,000.00 10,361,008,000.00
Credit loans 220,000,000.00 1,529,220,000.00
Total 12,298,193,000.00 11,938,490,375.85
17. Notes payables
Items Ending balance Beginning balance
Bank acceptance bill 9,317,222,357.86 8,738,192,014.02
Domestic letter of credit 2,333,060,000.00 1,275,000,000.00
Total 11,650,282,357.86 10,013,192,014.02
Notes: There are no outstanding notes payable at the end of this period.
18. Accounts payable
(1) Accounts payable disclosed by category
Items Ending balance Beginning balance
Accounts payable for goods 4,432,010,176.48 4,483,900,163.08
Accounts payable for labor 29,371,271.02 30,829,506.69
Accounts payable for project and equipment 509,540,291.98 424,097,390.68
Repair expense 652,340,212.43 579,971,383.23
Others 3,576,818.36 3,244,367.97
Total 5,626,838,770.27 5,522,042,811.65
(2) Significant accounts payable aging over one year
Items Ending balance Reason
Liaoning Shenjiao International Trade Co.,Ltd 72,839,065.27 Not yet settled
MCC Southern Engineering Technology Co., Ltd. 51,119,440.77 Not yet settled
Hangzhou Tianshen Materials Co., Ltd. 20,145,902.65 Not yet settled
MCC Jiao Nai Engineering Technology Co., Ltd. 19,379,163.99 Not yet settled
MCC Jiao Nai (Dalian) Engineering Technology Co.,
17,415,300.00 Not yet settled
Ltd.
Shenyang Railway Construction Bridge and Tunnel
14,200,000.00 Not yet settled
Engineering Co., Ltd.
Jixi Huasheng Fengyuan Coal Preparation Co., Ltd. 6,485,138.18 Not yet settled
Total 201,584,010.86
Notes to the financial statements Page 50
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
19. Advance from customers
(1) Advance from customers disclosed by category
Items Ending balance Beginning balance
Advance for goods 3,345,451,646.56 3,331,854,098.42
Total 3,345,451,646.56 3,331,854,098.42
(2) Significant advance from customers aging over one year.
None
20. Employee benefits payable
(1) Employee benefits payable
Items Beginning balance Increase Decrease Ending balance
(1) Short-term employee
47,824,468.42 916,510,872.23 916,669,401.25 47,665,939.40
benefits
(2) Post-employment
benefits - defined 174,373.43 128,070,045.18 128,069,809.64 174,608.97
contribution plans
(3) Termination benefits 3,467,389.87 1,046,552.23 2,420,837.64
(4) Other benefits due
within one year
Total 51,466,231.72 1,044,580,917.41 1,045,785,763.12 50,261,386.01
(2) Short-term employee benefits
Beginning
Items Increase Decrease Ending balance
balance
(1) Salary, bonus,
38,282,721.78 684,822,157.27 685,422,131.12 37,682,747.93
allowance and subsidy
(2) Employee welfare 47,016,070.43 47,016,070.43
(3) Social Insurance 652,400.36 71,083,855.14 71,083,855.14 652,400.36
Including: Medical
1,598.15 53,654,171.68 53,654,171.68 1,598.15
insurance
Work injury
650,802.21 17,416,640.12 17,416,640.12 650,802.21
insurance
Maternity
13,043.34 13,043.34
insurance
(4) Housing 6,854,689.00 52,823,804.00 52,887,301.00 6,791,192.00
(5) Union funds and staff
2,034,657.28 60,764,985.39 60,260,043.56 2,539,599.11
education fee
(6) Short-term compensated
Notes to the financial statements Page 51
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Beginning
Items Increase Decrease Ending balance
balance
absences
(7) Short-term profit -
sharing scheme
Total 47,824,468.42 916,510,872.23 916,669,401.25 47,665,939.40
(3) Defined contribution plans
Beginning
Items Increase Decrease Ending balance
balance
Basic pension fund 68,338.82 124,734,324.48 124,734,498.12 68,165.18
Unemployment insurance 106,034.61 3,335,720.70 3,335,311.52 106,443.79
Total 174,373.43 128,070,045.18 128,069,809.64 174,608.97
21. Current tax liabilities
Items Ending balance Beginning balance
Value-added tax 35,376,964.97 442,980,368.02
Corporate income tax 4,317,717.53 2,769,293.58
City maintenance and construction tax 9,587,112.00 32,813,368.49
House property tax 3,506,456.37 3,004,878.95
Educational surcharges 4,137,761.43 23,450,632.11
Environmental tax 381,305.56 7,340,495.80
Others 5,581,530.69 3,393,332.73
Total 62,888,848.55 515,752,369.68
22. Other payables
Items Ending balance Beginning balance
Interest payables 9,343,905.54 9,658,681.99
Dividends payables 193,768,576.60
Other payables 696,885,503.92 852,852,496.97
Total 899,997,986.06 862,511,178.96
(1) Interest Payable
Items Ending balance Beginning Balance
Loan interests 9,343,905.54 9,658,681.99
Total 9,343,905.54 9,658,681.99
(2) Dividends payables
Notes to the financial statements Page 52
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Items Ending balance Beginning Balance
Common dividend 193,768,576.60
Preferred shares divided into equity
instruments/Sustainable Debt Dividend
Including: Tool 1
Tool 2
Total 193,768,576.60
(3) Other payables
1) Other payables disclosed by nature
Items Ending balance Beginning Balance
Deposit 6,756,148.49 6,876,696.99
Margin 131,820,736.18 129,911,043.84
Accounts 395,056,845.92 568,285,473.68
Others 163,251,773.33 147,779,282.46
Total 696,885,503.92 852,852,496.97
2) Significant other payables ageing over one year
Name Ending balance Reason
Benxi Steel & Iron (Group) Co., Ltd. 101,874,612.92 Not yet settled
23. Non-current liabilities due within one year
Items Ending balance Beginning balance
Long-term loans due within one year 1,036,582,163.28 350,965,576.32
Bond payables due within one year
Total 1,036,582,163.28 350,965,576.32
24. Long-term loans
Categories Ending balance Beginning balance
Pledged loans
Mortgage loan
Guaranteed loans 3,195,042,608.56 3,931,317,094.16
Credit loans 3,018,011,955.59 3,152,323,000.00
Total 6,213,054,564.15 7,083,640,094.16
25. Long-term payables
Items Ending balance Beginning balance
Long-term payables 52,733,529.65 13,686,705.92
Notes to the financial statements Page 53
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Items Ending balance Beginning balance
Special payables
Total 52,733,529.65 13,686,705.92
(1) Long-term payables
Items Ending balance Beginning balance
Financing lease payments 52,733,529.65 13,686,705.92
Total 52,733,529.65 13,686,705.92
26. Deferred income
Beginning Ending
Items Increase Decrease Reason
balance balance
Government
289,499,002.97 428,000.00 41,695,000.00 248,232,002.97
subsidy
Total 289,499,002.97 428,000.00 41,695,000.00 248,232,002.97
Notes to the financial statements Page 54
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Projects of government subsidies:
Beginning Transfer to Other Related to assets or
Items Increase Ending balance
balance non-operating income decrease income
MES Project Special Fund 1,720,000.00 860,000.00 860,000.00 Related to assets
Industrial Enterprise Energy Management Center Construction Demonstration
6,960,000.00 1,160,000.00 5,800,000.00 Related to assets
Project
Environment Pollution Renovation Project 3,620,000.00 1,810,000.00 1,810,000.00 Related to assets
Environment Renovation Project and Regional Basin Environment Protection
340,000.00 170,000.00 170,000.00 Related to assets
Project
Cold Rolling Steel High Strength Renovation Project 200,000,000.00 25,000,000.00 175,000,000.00 Related to assets
Automobile High-class Electrolytic Zinc Steel Plate Production Line Project 16,416,000.00 4,104,000.00 12,312,000.00 Related to assets
Sintering Machine Residue Heat Usage and Desulfurization Project 4,204,000.00 2,102,000.00 2,102,000.00 Related to assets
7 130t Boilers Flue Gas Desulfurization Renovation Project of Power Plant 19,200,000.00 2,400,000.00 16,800,000.00 Related to assets
Overseas Advanced Technology Introduction Special Fund 6,884,000.00 1,442,000.00 5,442,000.00 Related to assets
Automobile Steel Sheet Engineering Laboratory Project 1,000,000.00 1,000,000.00 Related to assets
Third-generation High Strength Steels for Automobile R&D Project 2,900,000.00 2,900,000.00 Related to assets
The 360 Cubic Meter Sintering Machine Flue Gas Desulfurization Renovation
200,000.00 100,000.00 100,000.00 Related to assets
Project of Blast Furnace Plant
Environment Protection Project Special Fund 1,160,000.00 580,000.00 580,000.00 Related to assets
Advanced Treatment of Carbon Fiber Wastewater Project of Coke Plant Dongfeng
9,500,000.00 9,500,000.00 Related to assets
Area
Desulfurization and Denitration Projects for Coal-fired Boiler of Power Plant Related to assets
4,800,000.00 300,000.00 4,500,000.00
High-pressure Workshop
Power Plant No 3 workshop Heat and Power Cogeneration Renovation Project 8,000,000.00 1,000,000.00 7,000,000.00 Related to assets
Sintering Machine Energy Saving and Environmental Protection Project of Blast 2,320,000.00 580,000.00 1,740,000.00 Related to assets
Notes to the financial statements Page 55
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Beginning Transfer to Other Related to assets or
Items Increase Ending balance
balance non-operating income decrease income
Furnace Plant
Air Quality Automatic Monitoring System 175,000.00 35,000.00 140,000.00 Related to assets
Liaoning Grand Craftsman Subsidy and Skill Master Workstation Grant 100,002.97 240,000.00 340,002.97 Related to income
Support fund for the project of high-strength pipeline steel under low temperature
188,000.00 52,000.00 136,000.00 Related to income
and high pressure service conditions
Total 289,499,002.97 428,000.00 41,695,000.00 248,232,002.97
Notes to the financial statements Page 56
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
27. Share capital
Increase/decrease (+ , - )
Issuing
Items Beginning balance Bonus Transferred Ending balance
of new Others Subtotal
shares from reserves
share
Capital
3,875,371,532.00 3,875,371,532.00
shares
28. Capital reserves
Items Beginning balance Increase Decrease Ending balance
Capital premium over par
12,227,292,378.47 12,227,292,378.47
value
Other capital reserves 115,917,468.82 115,917,468.82
Total 12,343,209,847.29 12,343,209,847.29
29. Special Reserves
Items Beginning balance Increase Decrease Ending balance
Safety production cost 683,937.71 25,542,658.45 5,212,639.87 21,013,956.29
Total 683,937.71 25,542,658.45 5,212,639.87 21,013,956.29
30. Surplus Reserves
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
31. Undistributed Profits
Items Current period Previous period
Before adjustments: undistributed profits at last
1,945,887,269.82 1,103,162,610.35
year-end
After adjustments: undistributed profit at this
1,945,887,269.82 1,103,162,610.35
year-beginning
Notes to the financial statements Page 57
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Items Current period Previous period
Add: undistributed profit belonging to parent company 453,209,615.76 756,951,987.59
Common shares dividend payable 193,768,576.60 193,768,576.60
Ending balance of undistributed profits 2,205,328,308.98 1,666,346,021.34
32. Operating income and operating cost
Current period Previous period
Items
Revenue Cost Revenue Cost
Principal business 22,581,458,005.55 20,807,089,888.18 21,302,037,073.89 19,140,922,165.53
Other business 1,521,137,161.59 1,260,522,841.47 2,139,210,303.25 1,663,285,255.45
Total 24,102,595,167.14 22,067,612,729.65 23,441,247,377.14 20,804,207,420.98
Whether implement the new income standard or not.
□ Applicable √ Not applicable
33. Tax and surcharges
Items Current period Previous period
City maintenance and construction tax 27,561,420.89 48,666,138.65
Educational surcharge 19,877,089.62 34,952,935.92
Housing property tax 38,778,891.04 36,610,915.20
Land use right tax 6,538,299.88 3,421,519.74
Stamp duty and others 14,961,858.43 15,742,454.27
Environmental tax 6,387,222.58 13,896,524.30
Others 20,580.53 16,887.56
Total 114,125,362.97 153,307,375.64
34. Selling and distribution expenses
Items Current period Previous period
Freight 456,217,341.94 393,290,897.61
Port surcharges 52,405,847.32 56,907,191.59
Import and export agency fee 34,174,633.61 35,649,297.75
Notes to the financial statements Page 58
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Salary and benefits 13,553,533.82 11,993,852.41
Others 13,751,821.86 12,721,174.90
Package fee 4,342,020.59 3,475,594.69
Total 574,445,199.14 514,038,008.95
35. General and administrative expenses
Items Current period Previous period
Salary and benefits 122,383,642.39 116,352,823.92
Repair expense 142,464,599.50 174,107,156.65
Land use right fee 27,345,714.30 27,345,714.30
Others 62,667,766.52 57,134,166.31
Depreciation 24,216,703.47 26,164,322.31
Social insurance fee 23,532,872.66 23,452,571.91
Heating fee 22,391,441.18 20,783,413.87
Water resources fee 11,993,951.74 6,546,763.90
Housing fund 4,737,351.00 4,445,529.00
Amortization 2,970,897.50 2,982,926.09
Entertainment fee 1,070,316.75 1,527,871.52
Rental fee 643,214.78 543,240.66
Shipping fee 349,339.98 455,924.12
Total 446,767,811.77 461,842,424.56
36. Research and development expenses
Items Current period Previous period
Depreciation, materials and compensation, etc. 15,408,472.28 2,470,641.53
Total 15,408,472.28 2,470,641.53
Notes to the financial statements Page 59
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
37. Financial expenses
Items Current period Previous period
Interest expenditure 586,490,262.69 575,001,615.20
Less: Interest income 127,083,779.58 61,605,403.34
Exchange loss -71,095,752.13 286,291,324.68
Others 15,154,975.44 3,350,880.74
Total 403,465,706.42 803,038,417.28
Notes：The financial expenses of this period were 403 million yuan, a decrease of 400 million yuan
from the previous period of 803 million yuan, a decrease of 49.76%, mainly due to the increase in
exchange income and interest income during the period.
38. Other income
Related to
Items Current period Previous period assets or
income
MES Project Special Fund 860,000.00 860,000.00 Assets
Industrial Enterprise Energy Management Center
1,160,000.00 1,160,000.00 Assets
Construction Demonstration Project
Environment Pollution Renovation Project 1,810,000.00 1,810,000.00 Assets
Environment Renovation Project and Regional
170,000.00 170,000.00 Assets
Basin Environment Protection Project
Cold Rolling Steel High Strength Renovation
25,000,000.00 25,000,000.00 Assets
Project
Automobile High-class Electrolytic Zinc Steel
4,104,000.00 4,104,000.00 Assets
Plate Production Line Project
Sintering Machine Residue Heat Usage and
2,102,000.00 2,102,000.00 Assets
Desulfurization Project
7 130t Boilers Flue Gas Desulfurization
2,400,000.00 2,400,000.00 Assets
Renovation Project of Power Plant
Treatment and Salt Extraction Project of
50,000.00 Assets
Desulfurization Waste Liquid of Coke Plant
Overseas R&D Team Introduction Special Fund 1,442,000.00 1,442,000.00 Assets
The 360 Cubic Meter Sintering Machine Flue
Gas Desulfurization Renovation Project of Blast 100,000.00 100,000.00 Assets
Furnace Plant
Environment Protection Project Special Fund 580,000.00 580,000.00 Assets
Notes to the financial statements Page 60
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Related to
Items Current period Previous period assets or
income
Bengang Power plant high pressure workshop
coal burning boiler desulfurization and Assets
denitrification items
Bengang Power plant high pressure workshop
coal burning boiler desulfurization and 300,000.00 300,000.00 Assets
denitrification items
Power Plant No 3 workshop Heat and Power
1,000,000.00 Assets
Cogeneration Renovation Project
Iron and steel plant sintering machine energy
580,000.00 580,000.00 Assets
saving and environmental protection project
Air quality automatic monitoring system 35,000.00 35,000.00 Assets
Xihu source resource management committee
414,300.00 Income
compensation
Liaoning Grand Craftsman Subsidy and Skill
166,938.70 Income
Master Workstation Grant
Support fund for the project of high-strength
pipeline steel under low temperature and high 52,000.00 Income
pressure service conditions
Total 41,695,000.00 41,274,238.70
39. Income on investment
Items Current period Previous period
Income on disposal of long-term equity investment by equity
25,907.49
method
Income on bank short-term financial products 3,493,150.68
Total 25,907.49 3,493,150.68
40. Credit impairment loss
Items Current period Previous period
Account receivable bad debt loss 3,389,912.79
Other account receivable bad debt loss 361,601.04
Long-term account receivable bad debt loss
Notes to the financial statements Page 61
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Total 3,751,513.83
41. Asset impairment loss
Items Current period Previous period
Bad debt loss 14,523,332.71
Inventory impairment loss 6,394,630.93
Total 20,917,963.64
42. Assets disposal gains
The amount
Items Current period Previous period recognized in
non-recurring profit
Disposal gains or losses arising from disposal
2,418,704.34 825,580.63 2,418,704.34
of fixed assets not classified for sale
Total 2,418,704.34 825,580.63 2,418,704.34
43. Non-operating income
The amount
Current period Previous period recognized in
Items
non-recurring profit
Debt restructuring gain 50,640.00 945,892.23 50,640.00
Non-current assets scrapped gains 7,955,444.40 7,955,444.40
Others 204,097.84 1,192,505.57 204,097.84
Total 8,210,182.24 2,138,397.80 8,210,182.24
44. Non-operating expense
The amount
Items Current period Previous period recognized in
non-recurring profit
Non-current assets scrapped loss 57,974,322.05 1,382,402.26 57,974,322.05
Total 57,974,322.05 1,382,402.26 57,974,322.05
Notes to the financial statements Page 62
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
45. Income tax expense
(1) Income tax expense
Items Current period Previous period
Income tax payable for the current year 9,415,176.70 5,956,888.87
Adjustment of deferred income tax 16,547,005.03 5,679,337.17
Total 25,962,181.73 11,636,226.04
(2) Accounting profit and income tax expense adjustment process
Items Current period
Total profit 478,870,963.27
Income tax expense calculate according to the official or applicable tax rate 119,717,740.82
Effect of use of deductible losses of unrecognized deferred tax asset of prior period -93,755,559.09
Income tax expenses 25,962,181.73
46. Notes of statement of cash flows
(1) Cash received related to other operating activities
Items Current period Previous period
Withdraw of current accounts, advance for another 17,151,876.47 19,218,434.76
Interest income 127,083,779.58 61,605,403.34
Special subsidy income 428,000.00 694,300.00
Non-operating income 117,870.10 162,619.82
Others 123,098.19 101,722.27
Total 144,904,624.34 81,782,480.19
(2) Cash paid related to other operating activities
Items Current period Previous period
Current accounts, advance for another 221,234,925.29 285,018,187.10
Sales expenses 4,449,939.39 4,646,000.62
Administrative expenses 17,883,394.86 18,078,644.22
Bank charges 3,255,172.22 2,896,060.69
Notes to the financial statements Page 63
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Items Current period Previous period
Others 365,921.44 358,254.79
Total 247,189,353.20 310,997,147.42
47. Supplementary details of statement of cash flows
(1) Supplementary details for statement of cash flows
Items Current period Previous period
1. A reconciliation of net profit to cash flows from
operating activities:
Net profit 452,934,689.03 757,973,791.35
Add: Credit impairment loss 3,751,513.83
Asset impairment loss -20,917,963.64
Depreciation of fixed assets and so on 1,199,864,248.72 1,144,984,195.00
Amortization of right use asset
Amortization of intangible assets 3,278,732.29 3,239,455.09
Long-term deferred expenses
Losses proceeds from disposal of PPE, intangible assets
57,974,322.05 556,821.63
and other long-term assets (Earnings marked“－”)
Scrapped losses from fixed assets (Earnings
marked“－”)
Change in fair value loss (Earnings marked“－”)
Financial expenses (Earnings marked“－”) 403,465,706.42 803,038,417.28
Investment losses (Earnings marked“－”) -3,493,150.68
Deferred tax assets reduction (Addition marked“－”) 15,928,033.89 5,679,337.17
Deferred tax liabilities increased (Reduction
marked“－”)
Reduction of inventory (Addition marked“－”) -1,289,831,911.07 -1,683,906,453.31
Operating receivable items reduction (Addition
-908,736,317.08 817,004,548.19
marked“－”)
Operating payable items increase (Less marked"－") 1,046,157,987.59 -1,093,639,256.61
Other
Net cash flows generated from operating activities 984,787,005.67 730,519,741.47
2. Payments of investing and financing activities not
- --
involving cash:
Liabilities transferred to capital
Convertible bonds due within one year
Fixed assets financed by leasing
Notes to the financial statements Page 64
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Items Current period Previous period
3. The net increase in cash and cash equivalents: -- --
Ending balance of cash 11,788,922,569.51 16,038,506,854.22
Less: Beginning balance of cash 11,752,548,621.97 17,037,713,410.49
Add: Ending balance of cash equivalents
Less: Opening balance of cash equivalents
The net increase in cash and cash equivalents 36,373,947.54 -999,206,556.27
(2) The structure of cash and cash equivalents
Items Ending balance Beginning balance
1. Cash 11,788,922,569.51 11,752,548,621.97
Including: Cash on hand 5,346.25 4,839.95
Bank deposits available on demand 11,788,917,223.26 11,752,543,782.02
3. Ending balance of cash and cash equivalents 11,788,922,569.51 11,752,548,621.97
48. Assets of which ownership or right to use are restricted
Items Ending balance Reason
Cash at bank and on hand 5,156,849,822.92 Deposit for notes and letter of credit
Total 5,156,849,822.92
49. Foreign currency monetary items
(1) Foreign currency monetary items
Exchange rate at
Ending balance in Ending balance
Items the end of the
foreign currency translated to RMB
period
Cash at bank and on hand 582,105,770.06
Including: USD 83,505,239.72 6.8747 574,073,471.50
EUR 936,843.39 7.8170 7,323,304.78
HKD 805,949.50 0.8797 708,993.78
Short-term loans 1,306,193,000.00
Including: USD 190,000,000.00 6.8747 1,306,193,000.00
Non-current liabilities due
1,036,582,163.28
within one year
Notes to the financial statements Page 65
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Exchange rate at
Ending balance in Ending balance
Items the end of the
foreign currency translated to RMB
period
Including: USD 145,000,000.00 6.8747 996,831,500.00
EUR 4,895,952.88 7.8170 38,271,663.66
JPY 23,176,000.00 0.0638 1,478,999.62
Long-term loans 1,648,495,389.11
Including: USD
168,600,000.00 6.8747 1,159,074,420.00
EUR
61,285,400.00 7.8170 479,067,971.80
JPY
162,232,000.00 0.0638 10,352,997.31
(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
VIII. Equity in other entities
1. Equity in subsidiaries
(1) Constitution of enterprise group
Notes Shareholding ratio
Principal Register
of
Name of the subsidiaries place of ed Indi Acquiring method
busine Direct
business address rect
ss
Business combination
Xiamen Bengang Steel & Iron Sales Co., Ltd. Xiamen Xiamen Sales 100.00
under common control
Business combination
Wuxi Bengang Steel & Iron Sales Co., Ltd. Wuxi Wuxi Sales 100.00
under common control
Business combination
Tianjin Bengang Steel & Iron Trading Co., Ltd. Tianjin Tianjin Sales 100.00
under common control
Business combination
Nanjing Bengang Materials Sales Co., Ltd. Nanjing Nanjing Sales 100.00
under common control
Notes to the financial statements Page 66
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Notes Shareholding ratio
Principal Register
of
Name of the subsidiaries place of ed Indi Acquiring method
busine Direct
business address rect
ss
Business combination
Yantai Bengang Steel & Iron Sales Co., Ltd. Yantai Yantai Sales 100.00
under common control
Business combination
Harbin Bengang Economic and Trading Co., Ltd. Harbin Harbin Sales 100.00
under common control
Changchu Business combination
Changchun Bengang Steel & Iron Sales Co., Ltd. Changchun Sales 100.00
n under common control
Guangzhou Bengang Steel & Iron Trading Co. Guangzho
Guangzhou Sales 100.00 Establishment
Ltd. u
Shanghai Bengang Metallurgy Science and
Shanghai Shanghai Sales 100.00 Establishment
Technology Co., Ltd.
Manuf
Bengang Steel Plates Liaoyang Pellet Co., Ltd. Liaoyang Liaoyang acturin 100.00 Establishment
g
Manuf
Dalian Benruitong Automobile Materia
Dalian Dalian acturin 65.00 Establishment
Technology Co., Ltd.
g
Manuf
Business combination
Bengang Posco Cold-rolled Sheet Co., Ltd. Benxi Benxi acturin 75.00
under common control
g
Benxi Bengang Steel Sales Co., Ltd Benxi Benxi Sales 100.00 Establishment
Shenyang Bengang Metallurgical Science and
Shenyang Shenyang Sales 100.00 Establishment
Technology Co., Ltd.
Chongqing Liaoben Steel & Iron Trading Co., Chongqin
Chongqing Sales 100.00 Establishment
Ltd. g
Manuf
Bengang Baojin (Shenyang) auto new material Business combination
Shenyang Shenyang acturin 85.00
technology Co., Ltd. under common control
g
(2) Significant but not wholly-owned subsidiaries
Profits and losses Dividend declared Ending
Proportion of
attributing to to distribute to balance of
Name of the subsidiaries non-controlling
non-controlling non-controlling non-controlling
interests (%)
shareholders shareholders interests
Bengang Posco Cold-rolled Sheet Co.,
25.00% 1,926,183.65 502,422,724.15
Ltd.
(3) Financial information of significant but not wholly-owned subsidiaries
Notes to the financial statements Page 67
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Ending balance
Name of the Non-curre
Non-current Current
subsidiaries Current assets Total assets nt Total liabilities
assets liabilities
liabilities
Bengang Posco
Cold-rolled Sheet 4,223,695,815.76 1,544,857,225.81 5,768,553,041.57 3,758,862,144.98 3,758,862,144.98
Co., Ltd.
Beginning balance
Name of the Current Non-current Current Non-curren
Total assets Total liabilities
subsidiaries assets assets liabilities t liabilities
Bengang Posco
Cold-rolled Sheet 2,986,224,229.42 1,692,675,158.81 4,678,899,388.23 2,678,954,080.56 2,678,954,080.56
Co., Ltd.
Current period
Total
Name of the subsidiaries Operating Net cash flows from
Net profit comprehensive
income operating activities
income
Bengang Posco Cold-rolled Sheet
3,720,975,482.91 7,704,734.61 7,704,734.61 1,318,506,299.45
Co., Ltd.
Previous period
Total
Name of the subsidiaries Operating Net cash flows from
Net profit comprehensive
income operating activities
income
Bengang Posco Cold-rolled Sheet
3,971,529,847.27 5,511,711.19 5,511,711.19 686,401,003.83
Co., Ltd.
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.
Notes to the financial statements Page 68
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
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
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, Hongkong dollars and Japanese Yen. The ending balance of the assets and
liabilities after converted in RMB is shown as below:
Notes to the financial statements Page 69
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
(In 10 Thousand Yuan)
Ending balance
Items
USD Euro HKD Japanese Yen Total
Assets 57,407.35 732.33 70.90 58,210.58
Liabilities 346,209.89 51,733.96 1,183.20 399,127.06
Total 403,617.24 52,466.29 70.90 1,183.20 457,337.63
The table below shows the sensitivity analysis of RMB vs other currencies when RMB
deprecated or appreciated by 5% over other currencies under the assumption that other
variables remain the same. 5% is the sensitivity rate used by the management for internal
report of currency risk and it represents the estimation of the management over the possible
change of foreign currency. Sensitivity analysis only includes the monetary items measured
by foreign currency unpaid and will be adjusted at the year-end by 5%. The positive figures
reflect the increase of profit by 5% and the negative figures indicate the reduction of profit.
(In 10 Thousand Yuan)
Ending balance
Items Impact on Impact on
Impact on USD Impact on Euro Total
HKD Japanese Yen
Appreciation by 5% -14,440.13 -2,550.08 3.54 -59.16 -17,045.82
Depreciation by 5% 14,440.13 2,550.08 -3.54 59.16 17,045.82
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
underivative financial liabilities to repay according to the contract terms. The table has been
drawn up based on the undiscounted cash flows of financial liabilities based on the earliest
Notes to the financial statements Page 70
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
date on which the Company can be required to pay. The table includes both interest and
principal cash flows.
(In 10 Thousand Yuan)
Ending balance
Items Over 5
Within 1 year 1-2 years 2-5 years Total
years
Trade and other payables 1,797,686.94 31,109.67 135.72 94.60 1,829,026.93
Loans and interests 1,333,477.52 430,629.37 77,769.29 112,906.80 1,954,782.98
Total 3,131,164.46 461,739.04 77,905.01 113,001.40 3,783,809.91
(In 10 Thousand Yuan)
Beginning balance
Items Over 5
Within 1 year 1-2 years 2-5 years Total
years
Trade and other payables 1,638,885.92 67.12 130.65 71.79 1,639,155.48
Loans and interests 1,229,911.46 224,083.41 371,055.41 113,225.19 1,938,275.47
Total 2,868,797.38 224,150.53 371,186.06 113,296.98 3,577,430.95
X. Related party transactions
1. Details of parent company
(In 100 Million Yuan)
Place of Notes of Registered Share Voting
Name of parent company
Registry Business capital proportion (%) rights (%)
Benxi Steel (Group) Co., Ltd. Benxi Manufacturing 62.92 61.43 61.43
Notes to parent company:
The ultimate controlling party of the Company:
Other notes:
2. Details of the subsidiaries
For details of subsidiaries of the Company please refer to Notes.
Notes to the financial statements Page 71
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
3. Details of other related parties
For details of other related parties of the Company please refer to Notes.
Other related parties that have transactions with the Company during the current reporting
period or the previous reporting period are as followings:
Name of Other related parties Relationship
Bengang Group International Economic
Both belong to Bengang Group Co., Ltd.
and Trading Co., Ltd.
Bengang Cold-rolled Stainless Steel
Same parent company
Dandong Co., Ltd.
Benxi Beiying Steel & Iron (Group) Co.,
Both belong to Bengang Group Co., Ltd.
Ltd.
Bengang Electronics and Gas Co., Ltd. Both belong to Benxi Steel and Iron (Group) Co., Ltd.
Benxi Steel & Iron (Group) Real-estate
Same parent company
Development Co., Ltd.
Benxi Steel & Iron (Group) Steel & Iron
Same parent company
Process and Logistics Co., Ltd.
Benxi Steel & Iron (Group) Machinery
Same parent company
Manufacture Co., Ltd.
Benxi Steel & Iron (Group) Construction
Same parent company
Co., Ltd.
Benxi Steel & Iron (Group) Mining Co.,
Same parent company
Ltd.
Benxi Steel & Iron (Group) Thermal Power
Same parent company
Development Co., Ltd.
Benxi Steel & Iron (Group) Designing
Same parent company
Institute
Benxi Steel & Iron (Group) Industrial
Same parent company
Development Co., Ltd.
Notes to the financial statements Page 72
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Name of Other related parties Relationship
Benxi Steel & Iron (Group) Information
Same parent company
and Automatic Tech Co., Ltd.
Benxi Steel & Iron (Group) Construction
Same parent company
and Repairing Co., Ltd.
Benxi Steel & Iron (Group) Metallurgy
Same parent company
Residues Co., Ltd.
Benxi Iron and Steel (Group) Engineering
Same parent company
Construction Supervision Co., Ltd.
Benxi Steel & Iron (Group) Zhengtai
Same parent company
Construction Materials Co., Ltd.
Benxi High-tech Drilling Tools
Both belong to Bengang Group Co., Ltd.
Manufacture 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
Both belong to Benxi Steel and Iron (Group) Co., Ltd.
Sales Co., Ltd.
Benxi Steel & Iron (Group) General
Both belong to Benxi Steel and Iron (Group) Co., Ltd.
Hospital
Liaoning Bengang Steel & Iron Trading
Same parent company
Co., Ltd.
Liaoning Hengtai Heavy Machinery Co.,
Same parent company
Ltd.
Liaoning Hengtong Metallurgical
Same parent company
Equipment Manufacture Co., Ltd.
Liaoning Metallurgy Technician College Same parent company
Liaoning Metallurgy Vocational Technical
Same parent company
College
Notes to the financial statements Page 73
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Name of Other related parties Relationship
Suzhou Bengang Industrial Co., Ltd. Shareholding company
Benxi Steel & Iron (Group) Medical
Related party that the parent company has significant influence on it
Services Department;
Bengang Group Finance Co., Ltd. Both belong to Bengang Group Co., Ltd.
Liaoning Hengyi Financial Leasing Co., Both belong to Bengang Group Co., Ltd.
Ltd.
4. Related Party Transactions
(1) Related party transactions of purchasing goods and services
Company as the purchaser
Unit: yuan
The content of Whether
The approved trade
Name related party Jan to Jun 2019 exceed trade Jan to Jun 2018
credit
transactions credit or not
Benxi Steel & Iron
Repair expense 142,996,939.77 500,000,000.00 No 197,670,478.35
(Group) Co., Ltd.
Benxi Steel & Iron
Land lease fee 27,345,714.30 No 27,345,714.30
(Group) Co., Ltd.
Bengang
Cold-rolled
Products 822,471.66 10,000,000.00 No 641,948.77
Stainless Steel
Dandong Co., Ltd.
Benxi Steel & Iron
(Group) Mining Labor cost 3,914,064.77 No 3,867,465.58
Co., Ltd.
Benxi Steel & Iron Raw material and
(Group) Mining supplementary 2,156,555,339.29 5,000,000,000.00 No 2,038,163,311.47
Co., Ltd. material
Benxi Steel & Iron
(Group) Mining Freight 853,600.00 No
Co., Ltd.
Benxi Steel & Iron Raw material and
(Group) Metallurgy supplementary 110,560,334.60 300,000,000.00 No 128,528,351.16
Residues Co., Ltd. material
Benxi Steel & Iron
Processing fee 846,113.87 3,000,000.00 No 876,655.68
(Group) Steel &
Notes to the financial statements Page 74
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Iron Process and
Logistics Co., Ltd.
Benxi Steel & Iron
(Group) Real-estate
Raw materials 34,180,378.79 100,000,000.00 No 36,279,876.56
Development Co.,
Ltd.
Benxi Steel & Iron
(Group) Machinery
Spare parts 33,418,511.98 250,000,000.00 No 46,002,921.49
Manufacture Co.,
Ltd.
Benxi Steel & Iron
(Group) Machinery
Repair services 3,703,668.15 No 4,951,834.41
Manufacture Co.,
Ltd.
Benxi Steel & Iron
(Group)
Spare parts 4,246,825.42 500,000,000.00 No 1,918,014.21
Construction Co.,
Ltd.
Benxi Steel & Iron
(Group)
Project fee 71,237,456.89 No 20,289,496.89
Construction Co.,
Ltd.
Benxi Steel & Iron
(Group)
Repair services 70,856,476.39 No 114,818,650.89
Construction Co.,
Ltd.
Benxi Steel & Iron
Raw material and
(Group)
supplementary 3,320,555.73 No 1,094,007.08
Construction Co.,
material
Ltd.
Benxi Steel & Iron
(Group)
Freight 1,524,803.24 No 1,313,481.92
Construction Co.,
Ltd.
Benxi Steel & Iron
(Group) Industrial
Spare parts 28,960,169.80 300,000,000.00 No 28,083,979.07
Development Co.,
Ltd.
Benxi Steel & Iron Raw material and
(Group) Industrial supplementary 61,068,050.74 No 67,306,243.89
Development Co., material
Notes to the financial statements Page 75
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Ltd.
Benxi Steel & Iron
(Group) Industrial
Repair services 9,409,199.47 No 18,294,485.36
Development Co.,
Ltd.
Benxi Steel & Iron
(Group) Industrial
Freight 3,491,899.11 No 1,018,074.77
Development Co.,
Ltd.
Benxi Steel & Iron
(Group) Industrial
Project fee 158,028.96 No 916,801.71
Development Co.,
Ltd.
Benxi Steel & Iron Raw material &
(Group) supplementary
886,021.41 No 3,263,891.55
Construction and materials & spare
Repairing Co., Ltd. parts
Benxi Steel & Iron
(Group)
Project fee 4,531,849.83 No 11,753,839.95
Construction and
Repairing Co., Ltd.
Benxi Steel & Iron
(Group)
Repair expense 55,207,665.68 280,000,000.00 No 83,273,978.63
Construction and
Repairing Co., Ltd.
Bengang Raw material and
Electronics and Gas supplementary 58,733,582.92 200,000,000.00 No 64,119,457.44
Co., Ltd. material
Bengang
Electronics and Gas Repair services 2,520,858.62 No 18,629,048.68
Co., Ltd.
Benxi High-tech
Drilling Tools
Spare parts 44,681.42 5,000,000.00 No 311,192.85
Manufacture Co.,
Ltd.
Benxi New Career
Labor protection
Development Co., 472,000.00 12,000,000.00 No 442,032.39
fee
Ltd.
Benxi New Career Raw material and
Development Co., supplementary 484,200.00 No
Ltd. material and food
Notes to the financial statements Page 76
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Liaoning
Metallurgy Spare parts 6,995,443.90 10,000,000.00 No 3,170,680.46
Technician College
Bengang Group
International
Agency fee 34,174,633.61 250,000,000.00 No 35,649,297.75
Economic and
Trading Co., Ltd.
Bengang Group
International
Port surcharges 52,405,847.32 No 56,907,191.59
Economic and
Trading Co., Ltd.
Benxi Steel & Iron
(Group)
Information and Spare parts 2,262,130.00 100,000,000.00 No 9,332,489.18
Automatic Tech
Co., Ltd.
Benxi Steel & Iron
(Group)
Information and Project fee 21,914,475.40 No 23,358,888.88
Automatic Tech
Co., Ltd.
Benxi Steel & Iron
(Group) Thermal
Heating costs 272,000.00 5,000,000.00 No 377,311.58
Power Development
Co., Ltd.
Benxi Steel & Iron
Raw material and
(Group) Thermal
supplementary 28,400.00 No
Power Development
material
Co., Ltd.
Benxi Steel & Iron
(Group) Designing Design fees 292,400.00 10,000,000.00 No 2,315,800.00
Institute
Benxi Beiying Steel Raw material and
& Iron (Group) Co., supplementary 5,914,264,341.63 18,000,000,000.00 No 5,668,349,463.29
Ltd. material
Benxi Beiying Steel
& Iron (Group) Co., Energy & Power 319,067,523.99 No 388,658,384.32
Ltd.
Benxi Beiying Steel
& Iron (Group) Co., Freight 2,344,723.00 No 3,031,478.40
Ltd.
Notes to the financial statements Page 77
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Benxi Beiying Steel
& Iron (Group) Co., Labor cost 42,501,803.92 No 39,314,396.27
Ltd.
Benxi Beiying Steel
& Iron (Group) Co., Spare parts 7,582,750.53 No 10,645,896.19
Ltd.
Liaoning Hengtong
Metallurgical
Raw material and
Equipment 44,934,593.71 150,000,000.00 No 53,986,136.91
spare parts
Manufacture Co.,
Ltd.
Liaoning Hengtai
Raw material and
Heavy Machinery 1,718,437.09 80,000,000.00 No 1,248,720.58
spare parts
Co., Ltd.
Liaoning Hengtai
Repair and labor
Heavy Machinery 11,331,250.00 No 14,773,687.68
cost
Co., Ltd.
Bengang Group
House renting fee 376,146.79 15,000,000.00 No
Co., Ltd.
Bengang Group Property
No 310,698.12
Co., Ltd. management fee
Total 9,354,818,363.71 26,080,000,000.00
Company as the seller
Unit: yuan
The content of related party
Name Current period Previous period
transactions
Bengang Electronics and Gas Co., Ltd. Energy & Power 504,169.21 518,976.61
Raw material &
1,164,692,875.8
Benxi Beiying Steel & Iron (Group) Co., Ltd. supplementary materials & 602,307,810.47
7
spare parts
Benxi Beiying Steel & Iron (Group) Co., Ltd. Products 7,921,880.78 12,301,312.89
Benxi Beiying Steel & Iron (Group) Co., Ltd. Energy & Power 75,653,939.22 57,068,870.93
Benxi Steel & Iron (Group) Real-estate
Energy & Power 61,956.82 69,433.26
Development Co., Ltd.
Benxi Steel & Iron (Group) Steel & Iron Process Energy & Power 274,730.53 375,198.36
Notes to the financial statements Page 78
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
The content of related party
Name Current period Previous period
transactions
and Logistics Co., Ltd.
Benxi Steel & Iron (Group) Machinery
Products 9,957,732.94 9,733,073.15
Manufacture Co., Ltd.
Benxi Steel & Iron (Group) Machinery
Energy & Power 7,164,321.18 9,432,124.68
Manufacture Co., Ltd.
Raw material &
Benxi Steel & Iron (Group) Machinery
supplementary materials & 6,056,618.26 1,135,830.68
Manufacture Co., Ltd.
spare parts
Benxi Steel & Iron (Group) Construction Co., Ltd. Energy & Power 194,541.93 941,333.14
Raw material &
Benxi Steel & Iron (Group) Construction Co., Ltd. supplementary materials & 1,081,265.86 712,402.08
spare parts
Benxi Steel & Iron (Group) Mining Co., Ltd. Energy & Power 341,820,248.45 359,406,715.18
Raw material &
Benxi Steel & Iron (Group) Mining Co., Ltd. supplementary materials & 31,562,625.00 28,315,202.76
spare parts
Benxi Steel & Iron (Group) Mining Co., Ltd. Freight revenue 4,870,823.84 4,024,837.37
Benxi Steel & Iron (Group) Thermal Power
Energy & Power 22,899,877.19 23,749,581.93
Development Co., Ltd.
Raw material &
Benxi Steel & Iron (Group) Thermal Power
supplementary materials & 9,949,381.01 8,018,498.91
Development Co., Ltd.
spare parts
Benxi Steel & Iron (Group) Thermal Power
Freight revenue 85,835.38
Development Co., Ltd.
Benxi Steel & Iron (Group) Industrial
Energy & Power 4,076,622.08 3,885,392.91
Development Co., Ltd.
Notes to the financial statements Page 79
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
The content of related party
Name Current period Previous period
transactions
Benxi Steel & Iron (Group) Industrial
Products 124,557.49 113,234.08
Development Co., Ltd.
Raw material &
Benxi Steel & Iron (Group) Industrial
supplementary materials & 7,173,558.58 12,517,810.34
Development Co., Ltd.
spare parts
Benxi Steel & Iron (Group) Information and
Energy & Power 76,828.58 90,072.21
Automatic Tech Co., Ltd.
Benxi Steel & Iron (Group) Construction and
Energy & Power 794,774.18 839,850.93
Repairing Co., Ltd.
Raw material &
Benxi Steel & Iron (Group) Construction and
supplementary materials & 2,486,800.00 122,645.70
Repairing Co., Ltd.
spare parts
Benxi Steel & Iron (Group) Metallurgy Residues
Energy & Power 3,024,054.47 2,604,796.98
Co., Ltd.
Raw material &
Benxi Steel & Iron (Group) Metallurgy Residues
supplementary materials & 93,637,888.50 90,456,418.80
Co., Ltd.
spare parts
Benxi Steel & Iron (Group) Metallurgy Residues
Freight revenue 7,113,581.52
Co., Ltd.
Benxi Steel & Iron (Group) Co., Ltd. Energy & Power 1,470,706.35 7,026,460.13
Raw material &
Benxi Steel & Iron (Group) Co., Ltd. supplementary materials & 1,561,041.78 2,705,064.20
spare parts
Benxi New Career Development Co., Ltd. Energy & Power 151,308.68 180,988.72
Dalian Boluole Steel Tube Co., Ltd. Products 1,883,187.33 1,757,572.24
Benxi Steel & Iron (Group) General Hospital Energy & Power 30,915.31 34,222.10
Notes to the financial statements Page 80
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
The content of related party
Name Current period Previous period
transactions
Benxi Steel & Iron (Group) Zhengtai Construction
Energy & Power 2,700.00
Materials Co., Ltd.
Raw material &
Liaoning Hengtong Metallurgical Equipment
supplementary materials & 8,326,074.88 13,054,253.38
Manufacture Co., Ltd.
spare parts
Raw material &
Bengang Cold-rolled Stainless Steel Dandong Co.,
supplementary materials & 241,355.90
Ltd.
spare parts
Suzhou Bengang Industrial Co., Ltd. Products 163,624,251.44 170,528,506.26
Bengang Group Finance Co., Ltd. Energy & Power 6,926.54 7,026.08
Bengang Group Co., Ltd. Energy & Power 77,885.64 94,690.52
(2) Lease information of related parties
Company as the lessor
Unit: yuan
Lessee Lease capital category Lease income of current period Lease income of previous period
Benxi Steel & Iron
(Group) Steel & Iron
Warehouse and machinery 250,000.00 250,000.00
Process and
Logistics Co., Ltd.
Benxi Steel & Iron
(Group) Machinery
Plants and machinery 245,000.00 245,000.00
Manufacture Co.,
Ltd.
Company as the lessee
Unit: yuan
Lessor Lease capital category Lease charges of current period Lease charges of previous period
Benxi Steel & Iron
2300 Hot rolling product line 123,426,656.64 120,000,000.00
(Group) Co., Ltd
Benxi Steel & Iron
Land use right 27,345,714.30 27,345,714.30
(Group) Co., Ltd
Notes to the financial statements Page 81
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Benxi Beiying Steel
& Iron (Group) Co., 1780 Hot rolling product line 59,013,278.16 64,929,604.02
Ltd.
(3) Information of Guarantee among related parties
Company as the guarantor
No.
Company as the warrantee
Unit: yuan
Has the
Ending date
Starting date guarantee
Warrantor Amount of guarantee of
of Guarantee been
Guarantee
fulfilled
Bengang Group Co., Ltd. and Benxi No
200,000,000.00 2018/9/7 2019/9/5
Steel & Iron (Group) Co., Ltd.
Bengang Group Co., Ltd. and Benxi No
150,000,000.00 2018/10/17 2019/10/16
Steel & Iron (Group) Co., Ltd.
Bengang Group Co., Ltd. and Benxi No
200,000,000.00 2018/10/12 2019/10/10
Steel & Iron (Group) Co., Ltd.
Bengang Group Co., Ltd. and Benxi No
90,000,000.00 2016/3/30 2025/3/20
Steel & Iron (Group) Co., Ltd.
Bengang Group Co., Ltd. and Benxi No
610,000,000.00 2017/2/27 2025/2/20
Steel & Iron (Group) Co., Ltd.
Bengang Group Co., Ltd. and Benxi No
200,000,000.00 2018/11/9 2019/11/7
Steel & Iron (Group) Co., Ltd.
Bengang Group Co., Ltd. and Benxi No
200,000,000.00 2018/11/14 2019/11/13
Steel & Iron (Group) Co., Ltd.
Bengang Group Co., Ltd. and Benxi No
200,000,000.00 2019/6/13 2020/6/9
Steel & Iron (Group) Co., Ltd.
Notes to the financial statements Page 82
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Has the
Ending date
Starting date guarantee
Warrantor Amount of guarantee of
of Guarantee been
Guarantee
fulfilled
Bengang Group Co., Ltd. and Benxi No
200,000,000.00 2019/6/17 2020/6/17
Steel & Iron (Group) Co., Ltd.
Bengang Group Co., Ltd. and Benxi No
100,000,000.00 2019/1/24 2020/1/23
Steel & Iron (Group) Co., Ltd.
Bengang Group Co., Ltd. and Benxi No
178,000,000.00 2018/12/13 2019/12/12
Steel & Iron (Group) Co., Ltd.
Bengang Group Co., Ltd. 300,000,000.00 2018/11/15 2019/11/14 No
Bengang Group Co., Ltd. 140,000,000.00 2019/1/25 2020/1/25 No
Bengang Group Co., Ltd. 900,000,000.00 2018/11/28 2019/11/27 No
Bengang Group Co., Ltd. 100,000,000.00 2015/6/25 2021/9/21 No
Bengang Group Co., Ltd. 340,000,000.00 2019/3/29 2020/3/27 No
Bengang Group Co., Ltd. 520,000,000.00 2019/1/8 2019/12/14 No
Bengang Group Co., Ltd. 480,000,000.00 2019/1/28 2020/1/27 No
Bengang Group Co., Ltd. 310,000,000.00 2019/5/14 2020/5/13 No
Bengang Group Co., Ltd. 720,000,000.00 2019/5/14 2020/5/13 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. 87,280,000.00 2018/3/26 2024/6/21 No
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. 390,000,000.00 2018/11/29 2019/11/28 No
Bengang Group Co., Ltd. 150,000,000.00 2018/7/13 2019/7/13 No
Bengang Group Co., Ltd. 150,000,000.00 2018/7/13 2019/7/13 No
Bengang Group Co., Ltd. 100,000,000.00 2018/7/2 2019/7/1 No
Benxi Steel & Iron (Group) Co., Ltd. 147,000,000.00 2018/12/19 2019/12/19 No
Notes to the financial statements Page 83
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Has the
Ending date
Starting date guarantee
Warrantor Amount of guarantee of
of Guarantee been
Guarantee
fulfilled
Benxi Steel & Iron (Group) Co., Ltd. 330,000,000.00 2019/1/18 2020/1/18 No
Benxi Steel & Iron (Group) Co., Ltd. 340,000,000.00 2019/1/25 2020/1/25 No
Benxi Steel & Iron (Group) Co., Ltd. 224,000,000.00 2019/3/25 2020/3/25 No
Benxi Steel & Iron (Group) Co., Ltd. 300,000,000.00 2018/12/14 2019/12/14 No
Benxi Steel & Iron (Group) Co., Ltd. 373,000,000.00 2018/12/13 2019/12/13 No
Benxi Steel & Iron (Group) Co., Ltd. 480,000,000.00 2018/12/13 2019/12/13 No
Benxi Steel & Iron (Group) Co., Ltd. 500,000,000.00 2018/12/13 2019/12/13 No
Bengang Group Co., Ltd. 14,172,808.84 2015/6/25 2019/8/31 No
Bengang Group Co., Ltd. 18,069,884.06 2015/6/25 2019/10/31 No
Bengang Group Co., Ltd. 15,227,937.73 2015/6/25 2020/4/30 No
Bengang Group Co., Ltd. 3,781,895.63 2015/6/25 2025/6/30 No
Bengang Group Co., Ltd. 108,144,255.47 2015/6/25 2025/6/30 No
Bengang Group Co., Ltd. 4,762,870.04 2015/6/25 2025/8/31 No
Bengang Group Co., Ltd. 93,730,408.50 2015/6/25 2025/8/31 No
Bengang Group Co., Ltd. 1,823,016.48 2015/6/25 2025/9/30 No
Bengang Group Co., Ltd. 5,621,014.59 2015/6/25 2025/10/31 No
Bengang Group Co., Ltd. 77,398,020.52 2015/6/25 2025/10/31 No
Bengang Group Co., Ltd. 48,172.11 2015/6/25 2026/4/30 No
Bengang Group Co., Ltd. 4,357,670.68 2015/6/25 2026/4/30 No
Bengang Group Co., Ltd. 4,668,214.69 2015/8/20 2019/9/30 No
Bengang Group Co., Ltd. 62,282,971.53 2015/8/20 2025/9/30 No
Bengang Group Co., Ltd. 5,019,158.90 2015/12/28 2019/7/30 No
Bengang Group Co., Ltd. 1,869,620.34 2015/12/28 2019/8/31 No
Bengang Group Co., Ltd. 346,732.57 2015/12/28 2019/10/31 No
Bengang Group Co., Ltd. 5,445,920.20 2015/12/28 2020/4/30 No
Notes to the financial statements Page 84
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Has the
Ending date
Starting date guarantee
Warrantor Amount of guarantee of
of Guarantee been
Guarantee
fulfilled
Bengang Group Co., Ltd. 3,319,773.75 2015/12/28 2025/6/30 No
Bengang Group Co., Ltd. 1,978,639.04 2015/12/28 2025/8/31 No
Bengang Group Co., Ltd. 35,800,663.06 2015/12/28 2025/10/31 No
Bengang Group Co., Ltd. 31,808.23 2015/12/28 2026/4/30 No
Bengang Group Co., Ltd. 53,146,753.34 2015/12/28 2026/4/30 No
Bengang Group Co., Ltd. 3,210,436.04 2016/6/27 2020/4/30 No
Bengang Group Co., Ltd. 29,134,918.54 2016/6/27 2020/4/30 No
Bengang Group Co., Ltd. 286,236.34 2016/12/14 2020/4/30 No
Bengang Group Co., Ltd. 22,146,995.26 2016/12/14 2026/4/30 No
Bengang Group Co., Ltd. 169,550.73 2017/6/30 2025/10/31 No
Bengang Group Co., Ltd. 8,533,263.19 2017/6/30 2025/10/31 No
Bengang Group Co., Ltd. and Benxi No
Beiying Steel & Iron (Group) Co., 156,340,000.00 2018/5/8 2020/5/7
Ltd.
Bengang Group Co., Ltd. and Benxi No
Beiying Steel & Iron (Group) Co., 625,360,000.00 2018/5/2 2020/5/21
Ltd.
Bengang Group Co., Ltd. and Benxi No
Beiying Steel & Iron (Group) Co., 351,765,000.00 2018/7/3 2020/7/2
Ltd.
Bengang Group Co., Ltd. and Benxi No
Beiying Steel & Iron (Group) Co., 351,765,000.00 2018/8/17 2020/8/7
Ltd.
Bengang Group Co., Ltd. and Benxi No
781,700,000.00 2018/8/29 2020/8/28
Beiying Steel & Iron (Group) Co.,
Notes to the financial statements Page 85
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Has the
Ending date
Starting date guarantee
Warrantor Amount of guarantee of
of Guarantee been
Guarantee
fulfilled
Ltd.
Benxi Steel & Iron (Group) Co., Ltd. 703,530,000.00 2019/3/29 2020/3/29 No
Benxi Steel & Iron (Group) Co., Ltd. 781,700,000.00 2019/1/24 2020/1/24 No
Benxi Steel & Iron (Group) Co., Ltd. 12,640,955.21 1997/10/10 2027/9/10 No
(4) Remuneration of key management personnel
The content of related party
Name Jan to Jun 2019 Jan to Jun 2018
transactions
5. Receivables and payables of the related parties
(1) Receivables of the Company
Unit: yuan
Ending Balance Beginning Balance
Provision
Items Name Name Carrying Carrying Provision for
for bad
amount amount bad debts
debts
Accounts Benxi Beiying Steel &
9,677,640.18 12,062,641.63
receivable
Iron (Group) Co., Ltd.
Accounts Bengang Electronics and
4,011,051.09 1,127,643.33 4,082,619.41 1,127,643.33
receivable
Gas Co., Ltd.
Benxi Steel & Iron
Accounts
(Group) Machinery 526,804.41
receivable
Manufacture Co., Ltd.
Benxi Steel & Iron
Accounts
(Group) Industrial 854,825.25
receivable
Development Co., Ltd.
Accounts
Benxi Steel & Iron 8,035,809.75 9,372,190.37
receivable
Notes to the financial statements Page 86
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Ending Balance Beginning Balance
Provision
Items Name Name Carrying Carrying Provision for
for bad
amount amount bad debts
debts
(Group) Thermal Power
Development Co., Ltd.
Bengang Cold-rolled
Accounts
Stainless Steel Dandong 1,061,593.65 193,145.89 1,550,428.14 193,145.89
receivable
Co., Ltd.
Liaoning Hengtong
Accounts
Metallurgical Equipment 370,987.31
receivable
Manufacture Co., Ltd.
Bengang Group
Accounts
International Economic 100,971.10 129,063,024.28
receivable
and Trading Co., Ltd.
Benxi Steel & Iron
Accounts
(Group) Metallurgy 1,132,183.70
receivable
Residues Co., Ltd.
Benxi Beiying Steel &
Prepayments 6,284,632,450.75 713,124,266.80
Iron (Group) Co., Ltd.
Benxi Steel & Iron
Prepayments (Group) Machinery 21,743,756.33
Manufacture Co., Ltd.
Bengang Cold-rolled
Prepayments Stainless Steel Dandong 1,201,245.12 47,265.99
Co., Ltd.
Benxi Steel & Iron
Other
(Group) Real-estate 2,553,975.58 724,537.87 2,616,081.19 724,537.87
receivables
Development Co., Ltd.
Notes to the financial statements Page 87
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Ending Balance Beginning Balance
Provision
Items Name Name Carrying Carrying Provision for
for bad
amount amount bad debts
debts
Other Liaoning Metallurgy
39,395.40 58,042.46
receivables
Technician College
Benxi Steel & Iron
Other
(Group) Machinery 1,366,166.95 2,592,632.16
receivables
Manufacture Co., Ltd.
Benxi Steel & Iron
Other
(Group) Construction Co., 4,514,286.35 4,491,968.59
receivables
Ltd.
Bengang Group
Other
International Economic 4,807,446.56 6,224,516.81
receivables
and Trading Co., Ltd.
Benxi Steel & Iron
Other
(Group) Industrial 2,235,533.31 1,815,027.54
receivables
Development Co., Ltd.
Benxi Steel & Iron
Other (Group) Zhengtai
201,147.10 193,162.42 204,065.23 193,162.42
receivables
Construction Materials
Co., Ltd.
Benxi Steel & Iron
Other
(Group) Medical Co., 955,149.94 733,227.10 939,540.57 733,227.10
receivables
Ltd.
(2) Payables of the Company
Unit: yuan
Items Name Ending balance Beginning balance
Notes payable Benxi Steel & Iron (Group) Industrial Development Co., 0.00 1,905,086.04
Notes to the financial statements Page 88
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Items Name Ending balance Beginning balance
Ltd.
Benxi Steel & Iron (Group) Machinery Manufacture Co.,
Notes payable 1,008,219.22 224,362.71
Ltd.
Notes payable Benxi Iron and Steel (Group) Mining Co., Ltd. 1,243,233,389.01 980,479,420.15
Notes payable Benxi Beiying Steel & Iron (Group) Co., Ltd. 5,163,137,084.53 4,709,579,998.38
Notes payable Benxi Steel & Iron (Group) Metallurgy Residues Co., Ltd. 30,000,000.00 0.00
Benxi Steel & Iron (Group) Real-estate Development Co.,
Notes payable 0.00 2,916,960.50
Ltd.
Accounts
Bengang Electronics and Gas Co., Ltd. 5,071,770.00 20,382,963.65
payable
Accounts Benxi Steel & Iron (Group) Real-estate Development Co.,
2,829,042.10 3,184,460.04
payable Ltd.
Accounts Bengang Group International Economic and Trading Co.,
200,402,272.45 1,519,745,001.08
payable Ltd.
Accounts Benxi Steel & Iron (Group) Machinery Manufacture Co.,
25,604,819.64 32,397,260.02
payable Ltd.
Accounts
Benxi Steel & Iron (Group) Construction Co., Ltd. 76,099,021.68 92,880,212.13
payable
Accounts
Benxi Steel & Iron (Group) Mining Co., Ltd. 252,945,315.72 464,357,066.54
payable
Accounts Benxi Steel & Iron (Group) Industrial Development Co.,
95,285,666.32 75,431,391.58
payable Ltd.
Accounts
payable
Benxi New Career Development Co., Ltd. 44,040.61 3,569,767.05
Accounts
payable
Accounts Benxi Steel & Iron (Group) Construction and Repairing
112,684,064.72 107,367,297.75
payable Co., Ltd.
Accounts
Benxi Steel & Iron (Group) Metallurgy Residues Co., Ltd. 12,454,229.44 14,738,547.68
payable
Accounts Benxi Steel & Iron (Group) Medical and Health
20,440.35 20,440.35
payable department
Accounts Benxi Steel & Iron (Group) Information and Automatic
36,343,522.32 45,784,500.02
payable Tech Co., Ltd.
Accounts
Benxi High-tech Drilling Tools Manufacture Co., Ltd. 2,817,782.52 108,046.09
payable
Accounts
Liaoning Metallurgical Technician College 2,807,564.01 10,333,052.74
payable
Accounts Benxi Steel & Iron (Group) Thermal Power Development
383,145.77 209,674.64
payable Co., Ltd.
Notes to the financial statements Page 89
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Items Name Ending balance Beginning balance
Accounts Benxi Steel & Iron (Group) Zhengtai Construction
0.00 2,362.00
payable Materials Co., Ltd.
Accounts Liaoning Hengtong Metallurgical Equipment Manufacture
16,443,700.31 5,294,464.81
payable Co., Ltd.
Accounts
Liaoning Metallurgy Vocational Technical College 3,419,209.59 5,319,243.30
payable
Accounts
Bengang Cold-rolled Stainless Steel Dandong Co., Ltd. 3,258,895.78 4,549,558.68
payable
Accounts
Liaoning Hengtai Heavy Machinery Co., Ltd. 24,546,375.74 29,913,766.60
payable
Accounts Benxi Iron and Steel (Group) Engineering Construction
1,230,000.00
payable Supervision Co., Ltd.
Advance from Benxi Steel & Iron (Group) Machinery Manufacture Co.,
7,382,942.56 0.00
customers Ltd.
Advance from Benxi Steel & Iron (Group) Industrial Development Co.,
9,487,550.89 357,968.82
customers Ltd.
Advance from
Benxi Steel & Iron (Group) Metallurgy Residues Co., Ltd. 5,830,000.00 0.00
customers
Advance from Benxi Steel & Iron (Group) Steel & Iron Process and
7,411,101.50 60,690,525.48
customers Logistics Co., Ltd.
Advance from
Dalian Boluole Steel Tube Co., Ltd. 2,218,000.00 664,191.00
customers
Advance from
Liaoning Bengang Steel & Iron Trading Co., Ltd. 0.00 500,185.50
customers
Advance from Liaoning Hengtong Metallurgical Equipment Manufacture
9,408,464.61 129,100.04
customers Co., Ltd.
Advance from Bengang Group International Economic and Trading Co.,
7,583,745.32 7,865,450.22
customers Ltd.
Advance from
Suzhou Bengang Industrial Co., Ltd. 37,373,525.82 5,718,061.56
customers
Benxi Steel & Iron (Group) Real-estate Development Co.,
Other payables 1,438,246.63 1,435,884.63
Ltd.
Bengang Group International Economic and Trading Co.,
Other payables 32,436,467.17 49,481,500.00
Ltd.
Benxi Steel & Iron (Group) Machinery Manufacture Co.,
Other payables 645,661.36 750,851.18
Ltd.
Other payables Benxi Steel & Iron (Group) Construction Co., Ltd. 3,462,145.31 5,901,929.25
Benxi Steel & Iron (Group) Industrial Development Co.,
Other payables 851,643.17 491,454.17
Ltd.
Other payables Benxi New Career Development Co., Ltd. 897,658.64 970,675.26
Notes to the financial statements Page 90
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Items Name Ending balance Beginning balance
Other payables Benxi Steel & Iron (Group) Metallurgy Residues Co., Ltd. 289,954.15 501,477.25
Other payables Benxi Steel & Iron (Group) Co., Ltd. 101,874,612.92 218,328,849.90
Benxi Steel & Iron (Group) Thermal Power Development
Other payables 2,991,259.11 3,077,336.23
Co., Ltd.
Other payables Guangzhou Free Trade Zone Bengang Sales Co., Ltd. 2,674,436.85 2,674,436.85
Other payables Liaoning Metallurgical Vocational and Technical College 1,816,739.46 3,000.00
Other payables Bengang Group Finance Co., Ltd. 0.00 21,172.97
Other payables Liaoning Metallurgy Technician College 289,480.00 363,276.04
Other payables Benxi Beiying Steel & Iron (Group) Co., Ltd. 14,040,505.88 18,242,743.81
Long-term
Liaoning Hengyi Financial Leasing Co., Ltd. 52,733,529.65 13,686,705.92
payables
Notes to the financial statements Page 91
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
XI. Commitments and Contingencies
1. Commitments
1. Lease contracts in progress or to be performed and their financial impacts
(1) For the land leased from the Company to the Group, price is RMB 0.594 per Square
meter per month, and the area of the land is 7,669,068.17 square meters; hence annual
rent is RMB 54,665.10 thousand.
(2) For the 2300mm 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.
(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” were adopted on the sixth meeting of the
seventh board of directors, 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. Irrevocable letter of credit
As at June 30, 2019, the amount of irrevocable letter of credit that was not fulfilled is
RMB 2.333 billion.
Notes to the financial statements Page 92
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
2. Contingencies
At the balance sheet date, no significant contingencies need to be disclosed.
XII. Subsequent events
1. Profit distribution after the reporting period
Unit: yuan
Proposed profit or dividend 193,768,576.60
Profit or dividend declared for
193,768,576.60
approval
XIII. Other significant events
1. Other material issues that will influence investors’ decisions
1. Financing Lease
For prioritizing the capital structure and exploring financing channel, the Company signed the
“Financial lease cooperation framework” with Liaoning Hengyi Financial Leasing Co., Ltd.
with the amount of financial lease not exceeding RMB 5 billion per year. The Company obtains
the fund through sales and lease back financial lease with interest rate not above the benchmark
interest rate of loan over the same period published by the People’s bank of China and the
interest rate will be adjusted with the changes of benchmark interest rate of loan published by
the People’s bank of China over the lease term. The lease security ratio is not higher than 30%
of the lease principal amount. The term of financial lease shall not exceed 12 years.
2. Shares pledged by the Controlling Shareholders
As at 30 June 2019, within the total shares held by the controlling shareholder Benxi Steel &
Iron (Group) Co., Ltd., 1,652,095,133 shares are pledged and 45,000,000.00 shares are frozen.
Notes to the financial statements Page 93
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
XIV. Notes to the financial statements of parent company
1. Accounts receivable
(1) Accounts receivable disclosed by category
Ending balance
Carrying amount Provision for bad debts
Items
Percentage Bad debts Book value
Amount Amount
(%) ratio (%)
Accounts receivable
tested for impairment 47,762,337.18 8.26 47,762,337.18 100.00
individually
Including:
Accounts receivable
tested for impairment by 530,605,966.90 91.74 128,208,215.05 24.16 402,397,751.85
portfolio
Including:
Total 578,368,304.08 100.00% 175,970,552.23 402,397,751.85
Beginning balance
Carrying amount Provision for bad debts
Items
Percentag Bad debts Book value
Amount Amount
e (%) ratio (%)
Accounts receivable tested
for impairment 47,762,337.18 8.11 47,762,337.18 100.00
individually
Including:
Accounts receivable tested
for impairment by 541,151,187.11 91.89 131,598,127.84 24.32 409,553,059.27
portfolio
Including:
Total 588,913,524.29 100.00 179,360,465.02 409,553,059.27
Receivables individually significant and tested for impairment individually
Ending balance
Items Provision for Bad debts
Accounts receivable Reason
bad debts ratio(%)
Benxi Nanfen Xinhe Metallurgical 47,762,337.18 47,762,337.18 100.00 Halt operation
Notes to the financial statements Page 94
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Ending balance
Items Provision for Bad debts
Accounts receivable Reason
bad debts ratio(%)
Co., Ltd.
Total 47,762,337.18 47,762,337.18
Accounts receivable tested for impairment by portfolio
Ending balance
Items
Carrying amount Provision for bad debts Bad debts ratio (%)
Notes:
If the provision for bad debts of accounts receivable is made in accordance with the
general model of expected credit losses, please refer to the disclosure of other receivables
to disclose information about bad debts:
□ Applicable √ Not applicable
Accounts receivable disclosed by Aging
Unit: yuan
Aging Ending balance
Within 1 year (inclusive) 326,326,994.80
1 – 2 year 56,750,367.45
2 – 3 year 27,697,384.96
Over 3 years 167,593,556.87
Total 578,368,304.08
(2) Information of provision, reversal or recovery of bad debts of current period.
The provision of bad debts of current period is RMB 3,389,912.79.
(3) No accounts receivable has been written off this year.
(4) Top five debtors at the year-end
Ending balance
Company Percentage of total Provision for
Amount
accounts receivable (%) bad debts
No.1 206,877,478.40 35.77
Notes to the financial statements Page 95
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Ending balance
Company Percentage of total Provision for
Amount
accounts receivable (%) bad debts
No.2 62,482,368.63 10.80 6,792,099.51
No.3 47,762,337.18 8.26 47,762,337.18
No.4 41,687,479.04 7.21
No.5 10,140,717.39 1.75 1,150,024.13
Total 368,950,380.64 63.79 55,704,460.82
2. Other receivables
Items Ending balance Beginning balance
Interest receivables 12,222,112.07 9,815,280.04
Dividend receivables
Other receivables 216,469,271.82 225,222,111.42
Total 228,691,383.89 235,037,391.46
(1) Interest receivables
1) Interest receivable disclosed by category
Items Ending balance Beginning balance
Deposit interest 12,222,112.07 9,815,280.04
Total 12,222,112.07 9,815,280.04
(2) Dividend receivables
(3) Other receivables
1) Other receivables disclosed by nature
Nature Ending balance Beginning balance
Accounts 269,737,685.54 278,547,233.77
Others 10,941,600.08 11,246,492.49
Total 280,679,285.62 289,793,726.26
Notes to the financial statements Page 96
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
2) Provision of bad debt
Unit: yuan
The first stage The second stage The third stage
lifetime expected credit losses lifetime expected credit losses
Provision of bad debt 12-month expected Total
(credit impairment has not (credit impairment has already
credit losses
occurred) occurred)
The balance of January
1, 2019 in this reporting —— —— —— ——
period
Significant changes of provision during the current reporting period
□ Applicable √ Not applicable
Other receivables disclosed by Aging
Unit: yuan
Aging Ending balance
Within 1 year (inclusive) 175,866,828.59
1 – 2 year 3,202,196.37
2 – 3 year 44,775,445.85
Over 3 years 56,834,814.81
Total 280,679,285.62
3) Information of provision, reversal or recovery of bad debts of current period.
Reversal of bad debts for other receivables in current period is RMB 361,601.04.
4) No other receivables have been written off this year.
5) Top five debtors at the year-end
Percentage
of total other Provision for
Company Notes or content Amount Aging
receivables bad debts
(%)
No.1 Accounts 66,559,873.88 Within 1 year 23.71
No.2 Accounts 14,664,372.10 2-3 years 5.22 2,932,874.42
No.3 Accounts 7,718,029.34 Within 1 year 2.75
No.4 Accounts 5,302,064.54 2-3 years 1.89
No.5 Accounts 4,341,257.18 Within 1 year 1.55 868,251.44
Notes to the financial statements Page 97
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Total 98,585,597.04 35.12 3,801,125.86
3. Long-term equity investment
Ending balance Beginning balance
Items Carrying Impairme Impai
Book value Carrying amount Book value
amount nt rment
Subsidiaries 2,016,281,902.16 2,016,281,902.16 2,016,281,902.16 2,016,281,902.16
Joint ventures
Total 2,016,281,902.16 2,016,281,902.16 2,016,281,902.16 2,016,281,902.16
(1) Details of investment in subsidiaries
Impair
Ending
ment
balance
Ending of
Name of entity Beginning balance Increase Decrease of
balance curren
impair
t
ment
period
Guangzhou Bengang Steel & Iron Trading
30,000,000.00 30,000,000.00
Co., Ltd.
Shanghai Bengang Metallurgy Science and
30,000,000.00 30,000,000.00
Technology Co., Ltd.
Bengang Steel Plates Liaoyang Pellet Co.,
529,899,801.38 529,899,801.38
Ltd.
Dalian Benruitong Automobile Material
65,000,000.00 65,000,000.00
Technology Co., Ltd.
Bengang Posco Cold-rolled Sheet Co., Ltd. 1,019,781,571.10 1,019,781,571.10
Changchun Bengang Steel & Iron Sales Co.,
28,144,875.36 28,144,875.36
Ltd.
Harbin Bengang Economic and Trading Co.,
29,923,398.23 29,923,398.23
Ltd.
Nanjing Bengang Materials Sales Co., Ltd. 2,081,400.65 2,081,400.65
Wuxi Bengang Steel & Iron Sales Co., Ltd. 29,936,718.57 29,936,718.57
Xiamen Bengang Steel & Iron Sales Co.,
1,095,711.66 1,095,711.66
Ltd.
Yantai Bengang Steel & Iron Sales Co., Ltd. 49,100,329.41 49,100,329.41
Tianjin Bengang Steel & Iron Trading Co.,
60,318,095.80 60,318,095.80
Ltd.
Notes to the financial statements Page 98
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Benxi Bengang Steel Sales Co., Ltd 5,000,000.00 5,000,000.00
Shenyang Bengang Metallurgical Science
30,000,000.00 30,000,000.00
and Technology Co., Ltd.
Chongqing Liaoben Steel & Iron Trade Co.,
30,000,000.00 30,000,000.00
Ltd.
Bengang Baojin (Shenyang) Automobile
76,000,000.00 76,000,000.00
New Materials Technology Co., Ltd.
Total 2,016,281,902.16 2,016,281,902.16
4. Operating income and operating cost
Current period Previous period
Items
Revenue Cost Revenue Cost
Principal business 21,327,519,597.49 19,894,713,843.28 21,543,654,805.89 19,737,906,706.75
Other business 2,119,696,260.44 1,862,576,153.90 2,139,210,303.25 1,663,285,255.45
Total 23,447,215,857.93 21,757,289,997.18 23,682,865,109.14 21,401,191,962.20
Whether implement the new income standard or not.
□ Applicable √ Not applicable
5. Income on investment
Items Current period Previous period
Income from long-term equity investment (cost method)
Income from bank short-term financial products 3,493,150.68
Total 3,493,150.68
XV. Supplementary information
1. Details of non-recurring profit and loss
Items Amount Notes
Profit or loss from disposal of non-current assets -49,987,558.33
Government subsidy attributable to profit and loss of current period
(except such government subsidy closely related to the company's normal
41,695,000.00
business operation, 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 50,640.00
Notes to the financial statements Page 99
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
Items Amount Notes
Other non-operating revenue and expenditure other than above items 172,778.52
Impact of income tax 55,854.63
Impact of minority interests 3,799.93
Total -8,128,794.37
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
2. Net asset yield and earnings per share
Weighted average Earnings per share (Yuan)
Profit in the Reporting Period
net assets yield Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders 2.35% 0.12 0.12
Net profit attributable to ordinary shareholders
2.50% 0.12 0.12
after deducting non-recurring profit and loss
3. 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: RMB
Net profit attributable to the shareholders of the Net assets attributable to the
listed company shareholders of the listed company
This reporting period Previous reporting period Ending balance Beginning balance
According to Chinese
453,209,615.76 756,951,987.59 19,406,029,174.41 19,126,258,116.67
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
(3) Accounting data differences between domestic and foreign accounting standards
Notes to the financial statements Page 100
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
□ Applicable √ Not applicable
4. Others
Notes to the financial statements Page 101
Bengang Steel Plates Co., Ltd.
For the half year ended 30 June 2019
Notes to the financial statements
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.
Notes to the financial statements Page 102
