Beijing Shougang Co. Ltd Semi-Annual Report 2023
Beijing Shougang Company Limited
2023 Semi-Annual Report
10 August 2023
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Section I. Important notice, Content, Definitions
The board of directors (the “Board”), the supervisory committee, all directors, supervisors and senior executives
of the Company warrant that there are no false representations, misleading statements or material omissions in this
semi-annual report; and are jointly and individually responsible for the truthfulness, accuracy and completeness of
the information contained in this semi-annual report.
Mr. Zhao Minge, the representative of the Company, Mr. Liu Jianhui, the general manager of the Company, Mr. Li
Baizheng, the person overseeing the accounting operations of the Company, and Ms. Gong Juanjuan, head of
Accounting Department, made representations in respect of the truthfulness, accuracy and completeness of the
financial report contained in the semi-annual report.
All Directors have attended the Board meeting to consider this semi-annual report in person.
Forward-looking statements contained in this semi-annual report do not constitute any substantive commitments
to investors by the Company. Investors should be aware of the relevant investment risks.
The Company plans not to distribute cash dividends, issue bonus shares, or convert public reserve funds into share
capital.
This report is prepared based on Chinese text and is prepared in both Chinese and English versions. In the event of
any discrepancy between Chinese and English versions, the Chinese version shall prevail.
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
CONTENTS
SECTION I. IMPORTANT NOTICE, CONTENT, DEFINITIONS .......................................................................................................... 2
SECTION II. COMPANY PROFILE AND MAJOR FINANCIAL INDICATORS ........................................................................................ 6
SECTION III. MANAGEMENT DISCUSSION AND ANALYSIS .......................................................................................................... 8
SECTION IV. CORPORATE GOVERNANCE................................................................................................................................. 19
SECTION V. ENVIRONMENT AND SOCIAL RESPONSIBILITY ...................................................................................................... 20
SECTION VI. SIGNIFICANT EVENTS ........................................................................................................................................ 27
SECTION VII. MOVEMENTS IN SHARE CAPITAL AND SHAREHOLDERS ....................................................................................... 33
SECTION VIII. PREFERRED SHARES ....................................................................................................................................... 37
SECTION IX. BONDS ............................................................................................................................................................. 38
SECTION X. FINANCIAL REPORT ............................................................................................................................................ 40
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
File directory for reference
1.The semi-annual report with the signature and seal of Chairman of the Board.
2.Accounting statements with signatures and seals of general manager, chief accountant and person in charge of
accounting institution.
3. All the original documents and announcements publicly disclosed in newspapers designated by China Securities
Regulatory Commission during the reporting period.
4. The Articles of Association of the Company, etc.
5.Other relevant information.
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
INTERPRETATION
Items Refers to Contents
CSRC Refers to China Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
Company, the Company or
Refers to Beijing Shougang Company Limited
Shougang Co.
Shougang Group (Reforming from an enterprise owned by the whole people to
exclusively state-owned companies, name of Shougang Group is changed from
Shougang or Shougang Group Refers to
Shougang Corporation. The specific content is detailed in 15 June 2017 public
announcement.)
Listing Rules of SZSE Refers to Listing Rules of Shenzhen Stock Exchange
The Articles of Association Refers to The Articles of Association of Beijing Shougang Company Limited
Board of Directors or the
Refers to The board of directors of Beijing Shougang Company Limited
Board
Supervisory Committee Refers to The supervisory committee of Beijing Shougang Company Limited
Shareholders’ General
Refers to The Shareholders’ General Meeting of Beijing Shougang Company Limited
Meeting
Qiangang Co. Refers to Shougang Qian'an Iron&Steel Co., Ltd. (Branch of the Company)
Beijing Shougang Cold Rolling Co., Ltd. (Holding subsidiary of the Company, the
Cold-R Co. Refers to
Company holds 70.2806%)
Beijing Shougang New Energy Automobile Material Technology Co., Ltd. (Holding
New-E Co. Refers to
subsidiary of the Company, the Company holds 60%)
Shougang Zhixin Qian'an Electromagnetic Materials Co., Ltd. (Holding subsidiary of
Zhixin Co. Refers to
the Company, the Company holds 68.0293%, New-E Co. holds 6.1483%)
Beijing Shougang Steel Trading Investment Management Co., Ltd. (Wholly-owned
Steel Trading Refers to
subsidiaries of the Company)
The integrated production organization and product research and development system
Qianshun Base Refers to formed by Qiangang Co, located in Qian-an, Hebei province, and Cold-R Co., located
in Shunyi District, Beijing.
Shougang Jingtang United Iron&Steel Co., Ltd. (Holding subsidiary of the Company,
Jingtang Co./Jingtang Base. Refers to
the Company holds 70.1823%, Steel Trading Co. holds 29.8177%)
Since the shut down of the main process of iron and steel manufacturing in late 2010,
which was operated in Shijingshan District, Beijing, a transaction between the
Company and Shougang carried out. The transaction event was announced as "Related
Party Transactions between Beijing Shougang Co., Ltd. and Shougang Corporation -
First Reorganization, and Major Assets Swap and Asset Purchase through Issue of Shares". The event was
Previous Major Assets Refers to unconditional approved by China Securities Regulatory Commission Restructuring
Reorganization Committee on 16 January 2013. On 29 January 2014, the Company received the
approval document, named "The Approval of Related Party Transactions between
Beijing Shougang Co., Ltd. and Shougang Corporation - Major Assets Reorganization
and Asset Purchase through Issue of Shares", which was issued by China Securities
Regulatory Commission. On 25 April 2014, the reorganization was accomplished.
On 23 April 2015, trading in the shares of the Company was suspended and the major
assets swap launched. Main content of the swap is: 100% shareholding of Guizhou
Investment Co., Ltd. was replaced with 51% shareholding of Jingtang Co., any
insufficiency was paid in cash. This major assets swap was accomplished at the end of
Second Reorganization Refers to
2015. On 27 April 2016, re-election of the board of directors and amendment of
Articles of Association of Jingtang Co. was accomplished and the Company was
qualified to consolidate the financial statements of Jingtang Co. The second swap was
then accomplished.
Early Vendor Involvement means involving the downstream users at early stage of
product development process and fully understanding users’ requirements for raw
EVI Refers to
material so that high-performance materials and personalized services could be
offered to users.
Reporting Period Refers to From 1 January 2023 to 30 June 2023
Thousand, Million, Billion Refers to RMB Thousand, RMB Million, RMB Billion
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Section II. Company Profile and Major Financial Indicators
I. Company information
Short name of stock Shougang Stock Stock code 000959
Stock exchange for listing of shares The Shenzhen Stock Exchange
Statutory Chinese name of the Company Beijing Shougang Co., Ltd.
Statutory Chinese name of the Company Shougang Co.
Statutory English name of the Company (if any) Beijing Shougang Co., Ltd.
Legal representative of the Company Zhao Minge
II. Contact information
Secretary of the board
Name Chen Yi
Correspondence address No. 99 Shijingshan Road, Shijingshan District, Beijing, PRC
Telephone 010-88293727
Fax 010-88292055
Email address Chenyi@shougang.com.cn
III. Other
1. Way to contact the Company
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable √ Non applicable
The registered address, office address and their postal codes, website address and email address of the Company did not change
during the reporting period. The said information can be found in the 2022 Annual Report.
2. Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable √ Non applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing this report
and the location where this report is placed did not change during the reporting period. The said information can be found in the 2022
Annual Report.
3. Other relevant information
Did any change occur to other relevant information during the reporting period?
□ Applicable √ Non applicable
IV. Major accounting data and financial indicators
Whether the Company has retroactive adjustment or re-statement on previous accounting data or not
√ YES □ NO
Reasons for retroactive adjustment or restatement
Business combination under common control
Changes over
Amount of the prior period
last year
Amount of the current period
Before the adjustment After the adjustment After the adjustment
Operating revenue 57,368,096,029.37 63,831,045,675.55 63,194,115,447.56 -9.22%
Net profit attributable to shareholders of the
410,357,394.89 1,761,186,441.94 1,795,307,073.34 -77.14%
listed company
Net profit attributable to shareholders of the
listed company after deducting non-recurring 385,078,009.98 1,752,673,761.21 1,752,673,761.21 -78.03%
gain and loss
Net cash flows from operating activities 355,551,077.60 2,284,983,569.84 2,417,964,155.29 -85.30%
Basic earnings per share 0.0548 0.2442 0.2490 -77.99%
Diluted earnings per share 0.0548 0.2442 0.2490 -77.99%
3.10% decrease yea
Weighted average return on net assets 0.84% 3.87% 3.94%
r-on-year
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Changes over end
31 December 2022
of last year
30 June 2023
Before the adjustment After the adjustment After the adjustment
Total assets 141,596,926,689.81 143,173,445,003.35 143,173,445,003.35 -1.10%
Net assets attributable to shareholders of the
49,106,218,376.50 47,947,672,865.42 47,947,672,865.42 2.42%
listed company
V. Difference of accounting data under accounting rules in and out of China
1. Differences of net profit and net assets in financial statements disclosed according to International Financial Reporting
Standards and Chinese Accounting Standards
□ Applicable √ Non applicable
There is no difference between the net profit and net assets in the financial statements disclosed in accordance with International
Financial Reporting Standards and Chinese Accounting Standards during the reporting period of the Company.
2. Difference of net profit and net assets in financial statements disclosed according to foreign accounting standards and
Chinese Accounting Standards
□ Applicable √ Non applicable
There is no difference between the net profit and net assets in the financial statements disclosed in accordance with foreign
accounting standards and Chinese Accounting Standards during the reporting period of the Company.
VI. Items and amounts of non-recurring gain and loss
√ Applicable □ Non applicable
Unit: RMB Yuan
Item Amount of the current period Note
Gains and losses on disposal of non-current assets (including the write-off that
-2,234,959.49
accrued for impairment of assets)
Government grant included in the current profit and loss (except for the
government grant which are closely related to the normal operation of the
26,836,052.96
company that comply with national policies and regulations and continue to be
enjoyed according to certain standards, quotas, or quotas)
Profit and loss from external entrusted loans 5,922,896.67
Other non-operating income and expenses except the above items 1,156,972.21
Less: The impact of income tax 2,483,528.09
The impact on non-controlling interests (post-tax) 3,918,049.35
Total 25,279,384.91 --
Specific situation of other profit and loss items that meet the definition of non-recurring gain and loss:
□ Applicable √ Non applicable
The Company has no specific situation of other profit and loss items that meet the definition of non-recurring gain and loss.
Explanation of reclassifying the non-recurring gain and loss items listed in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items as recurring items:
□ Applicable √ Non applicable
The Company has no non-recurring profit and loss item listed in the Explanatory Announcement No. 1 on Information Disclosure for
Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items is reclassied as recurring item.
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Section III. Management Discussion and Analysis
I. Main business of the Company during the reporting period
1.The industry situation of the Company during the reporting period
In the first half of 2023, China's economy showed a recovery trend, but the market demand is still insufficient. The rapid recovery of
steel industry production, raw material cost has declined, due to downstream demand recovery less than expected, steel market prices
fell year-on-year, the decline is greater than the raw material end, the steel industry presents "high supply, low demand, low
profitability" characteristics.
Data from the National Bureau of Statistics show that in the first half of the year, ferrous metal smelting and rolling processing
industry increased by 5.5% year-on-year, and the national iron, steel and material production was 452 million tons, 536 million tons
and 677 million tons, up 2.7%, 1.3% and 4.4% respectively. Cisa data show that the average value of the China Steel Price Index
(CSPI) was 113.21 points, down 15.4 per cent year-on-year. Among them, the average price index of long materials was 117.53
points, down 15.5% year-on-year; The average plate price index was 113.51 points, down 13.9% year-on-year.
Cisa key statistics member steel enterprises in the first half of the operating income of RMB 3.19 trillion, down 5.56% year-on-year,
operating costs down 3.06% year-on-year, revenue decline is greater than the cost of 2.5 percentage points; Total profit was RMB 33
billion, down 68.8% year on year; The average sales profit margin was 1.03%, down 2.1 percentage points year-on-year; The loss
reached 44.6 percent, 17.4 percentage points higher than the same period last year.
In terms of suppliers, China imported 576 million tons of iron ore in the first half of the year, an increase of 7.7%, and the average
import price was 114.5 US dollars per ton, down 11.7%. Cisa key statistics of the main raw material procurement costs of enterprises
decreased year-on-year, including domestic iron concentrate, imported powder ore, coking coal, metallurgical coke, scrap steel
procurement costs decreased by 7.2%, 3.9%, 18.0%, 25.2%, 19.5%.
In terms of customers, the steel consumption structure changed in the first half of the year, the proportion of steel used in the
construction industry declined, and the proportion of steel used in ships, automobiles, home appliances, wind power and photovoltaic
increased. Among them, the automobile industry in the new energy vehicles and export driven performance is better, the shipbuilding
industry to maintain a good momentum of development, wind power, photovoltaic industry to maintain rapid growth, the overall
demand of the home appliance industry to remain stable, the real estate industry continues to slump.
Overall, the long-term fundamentals of China's economy have not changed, the economic recovery process presents the
characteristics of wave-like development and zigzag forward, and the steel industry will still be a challenge and opportunity in the
second half of the year. On the one hand, the contradiction between supply and demand will continue, the market competition will
become more and more fierce, and the enterprise operation is still facing greater pressure; On the other hand, the state has introduced
policies and measures to promote the transformation of urban villages and the construction of "dual use" public infrastructure, and
boost the bulk consumption of automobiles, electronic products, home furnishing, etc., and relevant policies and measures will also
bring structural demand to the steel industry.
2. The company's development positioning, main business, main products
The company is a world-class enterprise, firmly committed to the strategy of "green manufacturing, intelligent manufacturing,
high-quality manufacturing, lean manufacturing, accurate service", adhere to the development direction of "high-quality + service",
continue to improve the ability of "manufacturing + service", continue to optimize the product structure, production line structure and
customer structure, and continue to promote high-end product research and development focusing on electrical steel, automotive
plate, tinplate. From the initial listing of 4 million tons of high-quality rod and wire production enterprises, the company has
transformed into a leading technology, green and low-carbon technology company with 21.7 million tons of high-end plate
production capacity.
The main business of the Company is the production and sales of steel products and metal soft magnetic materials (electrical steel)
(1) Zhixin Co.
Zhixin Co is a research and development, manufacturing and sales base of metallic soft magnetic materials (electric steel), and has
become the world's leading manufacturer and service provider of electric steel. Products include oriented electric steel and electric
steel without orientation two big series, oriented electric steel including high magnetic induction, magnetic domain refinement, low
noise, low excitation, no underlying, intermediate frequency six products, independent research and development of low temperature
slab reheating technics producing high magnetic induction orientation technology of electric steel, as the world's fourth all cryogenic
technology industrialization enterprises. Non-oriented electric steel includes four categories of products including new energy
vehicles, stress relief annealing, high efficiency and general, with stable batch production capacity of all grades.
After building the world's first high-grade non-oriented electrical steel production line for new energy vehicles in August 2022,
Zhixin Co. built the world's first professional production line for electrical steel with 100% thin specifications and high magnetic
induction orientation in April 2023.
(2) Jingtang Co.
Jingtang Co., the large steel base, is a company with international advanced level designed and constructed in accordance with the
concept of circular economy. It has the obvious advantages of being near the sea and near the harbor, large equipments, high
production efficiency and low cost.
The products include two series of hot and cold plate products, of which the hot plate products form hot rolled sheet products based
on hot rolled pickling plate, weathering steel, automotive structural steel, high-strength engineering machinery steel, pipeline steel,
bridge steel, energy steel, pipeline steel, ship plate, Marine steel, medium and thick plate product series; The cold series products are
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
mainly automobile plate, tinned (chrome) plate, cold rolled special plate and color coated plate.
(3) Qianshun Base
Iron and steel products of Qianshun Base is an important high-end plate production base in China, with world-class equipment and
industry-leading clean steel manufacturing technology, with high-end auto plate, high-end household appliance board full range of
supply capacity.
Iron and steel products of Qianshun Base include hot and cold plates. The hot plates mainly contain: hot-rolled pickle sheet,
weather-resistant steel, automobile structure steel, high-strength construction machinery steel, pipeline steel, etc. The cold plates
mainly contain: automobile sheet, cold-rolled special-use plate, etc.
3.Overview
The Company focuses on the main business, seize the key links, key tasks continue to follow up. The company with effective and
competitive supply, to achieve accurate docking with downstream customer demand, at the same time, the company with internal
extreme work to hedge external adverse effects, the ultimate efficiency, extreme energy efficiency, extremely low cost concept
throughout the whole process of operation and production. Therefore, in the first half of the year, a number of production and
operation indicators reached the best level in history, and operational capacity and asset quality continued to improve.
(1) Completion of the Company's main operating indicators
During the reporting period, the Company's operating income was RMB 57.368 billion, a decrease of 9.22% year-on-year; Total
profit was RMB 566 million, a decrease of 76.49% compared with the same period last year; Net profit attributable to shareholders of
listed companies was RMB 410 million, down 77.14% year-on-year; Earnings per share of RMB 0.05, down 77.97%; The total
assets are RMB 141.597 billion, and the equity attributable to shareholders of listed company was RMB 49.106 billion.
In the second quarter, the Company's operating income was RMB 28.653 billion, down 0.22% from the previous quarter. The total
profit was RMB 579 million, an increase of 4553.85% from the previous quarter; Net profit attributable to shareholders of the listed
company was RMB 468 million, an increase of 906.90% from the previous quarter; and the earnings per share was RMB 0.0623, up
930.67% from the previous quarter.
(2) The achievement of major products:
i. Metallic soft magnetic material (Electric steel)
Zhixin Co.: Metal soft magnetic materials (electrical steel) production 848,200 tons, an increase of 18.23%. Among them, 135,500
tons, an increase of 39.24%; Non-oriented medium and low grade 31,700 tons, an increase of 15.68%; Non-oriented high grade 40.09
million tons, an increase of 14.39%.
The sales volume of metal soft magnetic material (Electrical steel) was 839,100 tons, and the operating income was RMB 6.976
billion, accounts for 12.16% of the Company's operating income.
ii. Iron and steel products
Qiangang Co.: Iron 4.302,800 tons, an increase of 3.13%; Steel 4.52 million tons, an increase of 2.68%; 4.384,900 tons of materials
(including cold-rolled raw materials), an increase of 4.54%. Jingtang Co.: 7,310,600 tons of iron, an increase of 2.69%; Steel 7.715
million tons, an increase of 0.12%; 7,332,100 tons of material, an increase of 0.99%. Cold-R Co: cold rolled sheet 926,300 tons,
down 8.42%. The sales revenue of steel products was RMB 48.623 billion, accounts for 84.76% of the Company's operating income.
Item Categories Sales volume (tons in 0,000)
1 Billet 3.68
2 Hot rolling 610.23
3 Cold rolling 467.35
4.The company's business highlights
(1) Continuously optimized product mix
The Company's three strategic products adhere to the development strategy of continuous leadership of electrical steel, fine and
strong automotive plate, and high-end breakthrough of tinplate, to achieve double improvement of product quality and efficiency.
During the reporting period, the total output of the three strategic products (electrical steel, automotive plate, tin-plated (chromium)
plate) was 3.13 million tons, the output of nine key products (cold-rolled steel, hot-rolled pickling plate, weathering steel, energy
steel, automotive structural steel, high-strength engineering machinery steel, pipeline steel, bridge steel, ship plate Marine steel) was
4.61 million tons, and the total output of strategic and key products was 7.74 million tons. Accounted for 66% of the company's total
steel production, an increase of 4 percentage points.
Item Categories Sales volume (tons in 0,000)
1 Metal soft magnetic materials (electrical steel) 85
2 Automobile sheet 195
3 Tin-plated (chrome) plate 33
4 Special steel for cold rolling 140
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
5 Weathering resistant steel 35
6 Automotive structural steel 42
7 Hot rolled pickling plate 104
8 High strength steel for construction machinery 33
9 Pipeline steel 17
10 Energy steel 36
11 Bridge steel 12
12 Ship plate Marine steel 42
Note: The above data are rounded data.
(2) Reduce costs and increase efficiency
The Company continues to explore cost reduction measures, actively respond to market changes, and vigorously promote process
cost reduction, technology cost reduction, collaborative cost reduction, product structure efficiency. Qiangang Co. to develop 107
key work to reduce costs and increase efficiency, and Jingtang Co. set up 18 reduce costs and increase efficiency research group, step
by step breakdown of detailed measures 1303, through the weekly promotion, monthly supervision, special supervision, tons of steel
to reduce costs and increase efficiency exceeded the plan.
In terms of process cost reduction, strengthen the operation of the integrated platform before iron, Qiangang Co. and Jingtang Co.
carry out research on coal and ore blending, adhere to economic materials, resource coordination and mutual availability, reduce
inventory costs, Qiangang Co.'s iron cost decreased by 14% year-on-year, and Jingtang Co.'s iron cost decreased by 12%
year-on-year; Breaking the process interface, the iron water temperature of Qiangang Co. decreased by 7.7℃ compared with the
previous year, hitting a new low. In terms of technology cost reduction, we carried out in-depth alloy replacement and composition
optimization, improved the control accuracy level through technical research, optimized product material design, and steadily
increased the product yield, among which the product yield of non-oriented electrical steel products for new energy vehicles
increased by 4.5% over the previous year. In terms of collaborative cost reduction, the formation of a production and supply
coordination mechanism to carry out comprehensive and all-factor material cost reduction; Strengthen supplier negotiations, extend
the pressure forward, and reduce costs at the source; Strengthen the control of equipment costs, reduce single maintenance and
outsourcing, and reduce the purchase price of spare parts. In terms of product structure efficiency, guided by product profitability,
production and marketing coordination, dynamic optimization of product structure, the market demand for pickling products
increased in May, and the company's pickling products increased by 30,000 tons more than planned.
(3) Production line efficiency improved
The company dug deep into the ultimate efficiency of the production line, the whole process of production continues to be efficient
and stable, and the production efficiency of each production process of iron, steel and materials has improved significantly in the
second quarter compared with the first quarter. The coke load of Qiangang Co. No. 3 blast furnace was stable at 6.0, refreshing the
historical record, and the iron output exceeded the best level for 3 times; Steelmaking achieved daily production and daily production
"double records", pickling product production in May hit the best monthly production level in history, and the comprehensive hot
charge heat delivery rate increased by 8% over the previous year. The utilization coefficient of Jingtang Co. 's three blast furnaces
was 2.45, maintaining the industry leading; Monthly production records were refreshed 17 times in each production line. The
comprehensive hot-charging and hot-delivery rate of hot-rolled and medium-thick plate products was 10% higher than that of the
previous year; The MCCR production line continued to improve efficiency, and the maximum number of cast furnaces was increased
to 27. Zhixin Co.'s overall output of electrical steel in May refreshed the monthly production record.
In April, Zhixin Company built the world's first professional production line of electrical steel with 100% thin specifications and high
magnetic induction orientation, 5 months ahead of the planned period, and contributed about RMB 150 million to the profit of the
second quarter's oriented product increase. The key equipment of the production line is 100% independent integration, independent
installation and independent debugging of the ring furnace. The localization rate of the equipment is as high as 95%, and the unit
efficiency is improved by more than 30% compared with the original design of the foreign party, creating the best operating level of
similar units in China. Through continuous research and comprehensive optimization, the process speed of the decarbonizing
annealing unit has set a new record, and the efficiency of the machine has increased by more than 27%. The process speed of the hot
drawing flat breaks the bottleneck, and the efficiency of the machine is increased by 15%. The new production line provides a strong
support for Shougang electrical steel product innovation research and development and upgrade iteration.
(4) Process energy consumption to pursue the ultimate
At the end of 2022, Qiangang Co. and Jingtang Co. were awarded the first batch of "Double carbon Best Practice Energy Efficiency
Benchmarking Demonstration Plant Cultivation Enterprises" by CISA. During the reporting period, the company formulated the
"Beijing Shougang Co., Ltd. energy cost reduction and extreme energy Efficiency integrated promotion Plan", established
institutions and improved mechanisms, determined the ultimate energy efficiency goals and tasks of each process according to the
relevant national standard bank benchmark values, and promoted the "extreme energy efficiency" project in steps.
The cumulative energy consumption of the coking process of Qiangang Co. completed 109.6kgce/t, reaching the benchmark value
continuously from March to June, the cumulative energy consumption of the blast furnace process completed 388.5kgce/t, of which
the No. 3 blast furnace reached the benchmark value in 3 months, and the cumulative energy consumption of the converter process
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
completed -29.5kgce/t, reaching the benchmark value from June.
The cumulative energy consumption of the coking process of Jingtang Co. completed 100.9kgce/t, which was stable and better than
the benchmark level; the cumulative energy consumption of the 3# blast furnace process completed 358.2kgce/t, which was better
than the benchmark value in 5 months; the cumulative energy consumption of the converter process completed -29.3kgce/t, which
was better than the benchmark value in 4 months.
II. Analysis of core competitiveness
1. Market-leading technology
The Company, Jingtang Co., Zhixin Co., Cold-R Co. are high-tech enterprises, R&D investment of RMB 1.868 billion during the
reporting period, accounts for 3.26% of the operating revenue. Technological innovation is guided by benefit and demand, relying on
the research and development system of "one institute and multiple centers", making technical research projects, expert workstations
and platforms for external cooperation. The cultivation of new products, new technologies and new technological processes is
accelerating.
New Product development: 23SQGD085LS and 15SQF1250 oriented electrical steel products are the world's first. Compared with
conventional products, 23SQGD085LS product reduces the excitation power by 25%, meeting the special requirements of "two
networks" high-quality transformers with low no-load loss and low reactive power, which can further improve the safety of the
power grid and support the needs of low-carbon development of the power grid. 15SQF1250 is a future-oriented medium frequency
oriented electrical steel new product, is the world's thinnest oriented electrical steel products, compared with the traditional deep
processing ultra-thin strip 0.15mm the highest grade, the performance level increased by 7 grades, to reach the world's leading level,
to meet the power industry under complex conditions of large capacity, high energy efficiency, high safety, low noise requirements.
It provides the key core materials for the new DC convergence technology of wind power, photovoltaic and other new energy power
generation, and meets the development requirements of AC/DC flexible interchange of the future power grid. Focus on solving the
"stuck neck" problem, continue to promote the "alternative import" localization of 26 projects, the first half of the supply of nearly
40,000 tons.
Patents: The Company has obtained 330 patents, including 137 invention patents, 192 utility model patents, and 1 design patent.
Standards: As a standard industry benchmark, the Company has participated in the development of 60 standards at all levels,
including leading the development of 24.
Science and technology awards: The Company organized the application of Hebei Province science and technology awards 3,
which has successively passed the formal review and network review, is about to enter the evaluation stage. At the same time, the
Company declared 2 metallurgical industry science and technology awards, which has completed the jury review.
2. High-end products
The company's electrical steel production of 848,200 tons, an increase of about 18%, of which high-end products accounted for 63%,
an increase of 1 percentage point. Among them, the output of high magnetic induction oriented electrical steel was 135,500 tons, an
increase of about 39%, and 0.20mm and below ultra-thin specifications of high magnetic induction oriented electrical steel continued
to maintain the first position in domestic sales. The company continued to optimize the structure of non-oriented electrical steel
products, and the output of high-grade non-oriented electrical steel products was 400,900.00 tons, an increase of about 14%. Among
them, the production of high-grade non-oriented electrical steel products for new energy vehicles increased by about 59%
year-on-year, which stabilized the supply of 8 of the top 10 car companies in the global sales of new energy vehicles.
The company's automotive plate production of 1,946,800 tons, an increase of about 8%. The product structure was further optimized,
and the output of galvanized, high-strength and outer plate increased by 18%, 18% and 21%, respectively. Ultra-high strength and
aluminized silicon products increased by 11% and 71%, respectively. The user structure was further upgraded, and the share of core
Oems increased steadily; Shipments to Japanese customers increased by 7% year-on-year; The supply of new energy users increased
by 85% year-on-year.
The company's tin (chromium) plate production of 329,700 tons, an increase of about 11%. This increases the company's efforts to
develop overseas markets, the product is mainly made of high-sulfur resistance food cans to supply the Latin American market;
Orders for functional beverage cans increased by 29% year-on-year, and orders for high-end varieties further increased.
The company's key product features, differentiation promotion has also made new progress. Record deliveries of 9Ni steel for Marine
LNG fuel tanks. High steel grade hydrogen pipeline steel mass production, the product in the first hydrogen doped pipeline in China
to achieve 10,000-ton demonstration application. Photovoltaic bracket with weathering steel to achieve 490-800MPa level full
coverage; The product achieves 420MPa level product batch supply. Enamelled steel (SRT550) was successfully applied to the
28,500 square meter very large tank project in Dominica, Spain.
3. Green and low-carbon
The company actively promotes low-carbon management and LCA management around national low-carbon requirements and
customer carbon reduction needs. To carry out the construction of low-carbon management system, combined with the company's
low-carbon practice, the company has formulated low-carbon action plans and planning implementation plans.
The blast furnace of Jingtang Company with 55% proportion of pellets runs stably, and the smelting experiment of 35% proportion of
pellets is carried out steadily in Qiangang Company, and the carbon reduction at source is steadily promoted. Carry out experiments
on low-carbon products, improve the carbon reduction capacity of technology, and achieve mass production of low-carbon
automotive plate coating products with comprehensive carbon emissions reduced by more than 30% by using the continuous casting
process of 40% scrap ratio; For the first time in the industry, the production of a full range of GA low-carbon products such as IF
steel, low-carbon aluminum sedated steel and ultra-high strength steel and the trial production of client molding have been carried out,
and the comprehensive application evaluation from the inner plate to the outer plate of the automobile has been completed, reaching
the same quality as the conventional process. Hot continuous rolling steel sheet and steel strip products were successfully released on
the EPD platform of the steel industry, and 4 categories of oriented electrical steel, pipeline steel, non-oriented electrical steel for
new energy vehicles, hot rolled high-strength steel sheet and steel strip for automobiles were selected into the "Green Design Product
11
Beijing Shougang Co. Ltd Semi-Annual Report 2023
List" of the Ministry of Industry and Information Technology. During the reporting period, Zhixin Electromagnetic's high-end
oriented and non-oriented electrical steel products were applied to transformers, new energy vehicles, industrial motors, and home
appliances industries, which could reduce downstream carbon dioxide emissions by about 2 million tons by improving energy
efficiency and motor efficiency.
4. Intelligent manufacturing
The company has a cross-regional, multi-base, unified production and marketing integration collaborative management platform, and
the evaluation level of the integration of the two has reached the "innovation breakthrough stage". The digitization rate of the
company's production equipment exceeds 90%, the "one-button control" process reaches 50, the application of 129 sets of "industrial
robots", and the unmanned intelligent reservoir area is 15. During the reporting period, the company focused on promoting digital
transformation and intelligent manufacturing around "iron integration" and "Shunleng Lighthouse Factory construction". After the
company completed the construction of the "Integrated iron Management Information System" project, the basic data monitoring,
collection and analysis of pellet, sintering and blast furnace areas were realized, which effectively reduced the cost of iron and
provided important support for improving the integrated collaborative management and control of iron pre-production areas. During
the reporting period, the company's "iron water temperature drop control" system was officially launched to achieve visual tracking
of torpedo tanks, on-demand iron production, torpedo tank life cycle management and other functions, which helped improve the
efficiency of molten iron logistics, and achieved a daily increase in the number of torpedo tank turnover compared with the previous
year and a further decrease in iron water temperature of about 8%.
5. Supply chain security
The company is the only platform for the development and integration of the steel and upstream iron ore resources industry of
Shougang Group, the controlling shareholder, and the supply of iron ore, coke and coal resources for production is guaranteed. In
terms of iron ore, Shougang Group has an annual production capacity of 4 million tons of iron fine iron ore in China, Xingshan iron
ore, foreign holding iron fine iron ore with an annual production capacity of 20 million tons of Peru iron ore, under construction of
the Macheng iron ore reserves, low cost, environmental protection and efficient transportation, iron fine iron powder annual
production capacity of 7 million tons, after the company's iron ore resources security capacity will be further improved. In terms of
coke, the coke of Qiangang Co. is mainly supplied by Qian 'an Zhonghua Coal Chemical Co., Ltd., a joint venture between Shougang
and Kailuan, and the coke of Jingtang Co. is supplied by Tangshan Shougang Jingtang Xishan Coking Co., Ltd., a joint venture
between Beijing Tang Company and Shanxi Coking Coal. The supply of coke resources is guaranteed. In terms of coal, the company
has signed long-term association resources with large state-owned coal groups, and Shougang Fushan Resources Group Co., Ltd.
which is a share of Shougang Group also provides some high-quality coking coal resources to the company, and the coal supply
guarantee is strong.
6、"Technology + Service" marketing
The company takes the customer as the center to deepen the "technology + service" marketing strategy, and build Shougang service
to enhance brand value. The company has continuously improved the service system, improved the service efficiency, and
strengthened the construction of the new energy vehicle service team, which meets the customer's requirements for quality, delivery,
research and development, and service, resulting in the continuous strengthening of technical marketing capabilities. The Company
has increased its EVI service capabilities year by year, and the EVI supply increased by approximately 19% year over year during the
reporting period. Establish a product advantage analysis model, strengthen product research and development, improve
manufacturing capabilities, promote key products to maintain competitive advantages, strategic products to expand the leading edge.
The company formed a marketing center as the core, 5 regional steel trade subsidiaries and 11 processing center combination of
centralized, rapid response, efficient operation of the marketing management network, which effectively guaranteed the stability of
downstream customers, while consolidating and enhancing the industry chain leading enterprises and high-quality small and
medium-sized customers combined channel structure. The company cultivates the comparative advantage of industrial chain
cooperation, and carries out all-round, multi-level and high-quality cooperation with key customers in the industry, which further
enhances the depth of cooperation, improves the viscosity of cooperation, and maintains the market share.
7. Talent thriving enterprise
The company has further promoted the strategy of strong talent and built a multi-level training system for all staff. Qianshun Base
and Zhixin Co. have established a full-life career development system of "Voyage" for high-potential talents, and organized training
programs such as Deep Blue Special training camp, Future Artisan Youth training camp and TTT internal trainer to strengthen talent
empowerment. Jingtang Co. constructs the "four horizontal and three vertical" full staff training system, and solidly promotes the
"blue project" to build a platform for the growth of cadres and talents. During the reporting period, 1 person was awarded the
National May 1 Labor Medal, 1 person was awarded the third "Beijing Great Craftsman", and 1 person was awarded the "National
Craftsman of Machinery, metallurgy and building Materials Industry".
The company has improved the talent promotion evaluation mechanism and smooth the career development path of talents. Therefore,
the company formulated the "Shougang Stock 2023 Three talent team incentive mechanism Implementation Plan", which further
subdivides the job family and job category, improves the accuracy of evaluation, thus strengthening the performance orientation,
practical orientation and strengthening the training and development of high-level position personnel. Finally, the proportion of
high-tech and high-skilled talents in the company has steadily increased.
III. Main business analysis
Summary
Refer to relevant contents of “I. Main business of the Company during the reporting period”.
Changes in the financial data
Unit：RMB Yuan
Amount of the current period Amount of the prior period Year-on-year Reasons
12
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Changes
Operating income 57,368,096,029.37 63,194,115,447.56 -9.22%
Operating cost 54,320,153,167.23 58,297,262,097.99 -6.82%
Sale expenses 108,676,549.88 110,681,490.14 -1.81%
Administrative expenses 579,477,011.71 589,064,385.23 -1.63%
Financial expenses 770,889,994.30 894,145,156.20 -13.78%
It is mainly caused by the decrease of
Income tax expenses 93,166,930.51 366,144,984.98 -74.55%
taxable income.
Mainly, the research and development
projects of this year will be carried out
R&D Investment 1,868,781,554.78 3,651,308,942.31 -48.82%
successively in the second half of the
year according to the arrangement.
It is mainly caused by the high level of
Net cash flow generated by raw fuel operation of suppliers,
355,551,077.60 2,417,964,155.29 -85.30%
business operation resulting in a substantial increase in
cash paid for goods and services.
Net cash flow generated by
-1,296,355,964.90 -1,137,710,502.32 -13.94%
Investment
It is mainly due to the increase in
Net cash flow generated by investment from minority shareholders
-373,104,745.76 -2,916,354,643.50 87.21% absorbed by the subsidiary and the
financing decrease in repayment of bank loans
during the period.
Net increasing of cash and
-1,313,909,633.06 -1,636,100,990.53 19.69%
cash equivalents
Major changes in profit composition or sources during the report period
□ Applicable √ Non applicable
The profit composition or sources of the Company have remained largely unchanged during the report period.
Component of operating revenue
Unit: RMB Yuan
Current period Prior period
Increase/decrease
Amount Proportion Amount Proportion
Total operating
57,368,096,029.37 100% 63,194,115,447.56 100% -9.22%
revenue
According to industries
Metallurgy 57,368,096,029.37 100.00% 63,194,115,447.56 100.00% -9.22%
According to products
Billet 137,297,135.04 0.24% 302,806,719.26 0.48% -54.66%
Hot-rolled steel 24,421,717,115.92 42.57% 26,182,194,086.24 41.43% -6.72%
Cold-rolled steel 23,064,792,967.98 40.20% 27,084,614,994.85 42.86% -14.84%
Metallic soft magnetic
6,976,487,451.49 12.16% 6,497,901,339.57 10.28% 7.37%
material
Other steels 998,828,157.40 1.74% 1,212,459,321.71 1.92% -17.62%
Other business 1,768,973,201.54 3.08% 1,914,138,985.93 3.03% -7.58%
According to regions
North China 20,185,444,818.01 35.19% 22,741,321,643.12 35.99% -11.24%
Northeast China 1,415,574,393.06 2.47% 1,549,861,970.51 2.45% -8.66%
East China 16,566,019,818.33 28.88% 18,474,324,546.46 29.23% -10.33%
Mid-South China 7,476,690,712.67 13.03% 8,251,345,045.82 13.06% -9.39%
South China 5,550,606,810.75 9.68% 6,186,370,946.79 9.79% -10.28%
Southwest China 1,395,468,272.81 2.43% 1,560,928,967.74 2.47% -10.60%
Northwest China 127,111,951.10 0.22% 138,827,907.08 0.22% -8.44%
Export 4,651,179,252.64 8.11% 4,291,134,420.04 6.79% 8.39%
Situation of industry, product and district occupying the company’s operating revenue and operating profits with profit over 10%
√ Applicable □ Non applicable
Unit: RMB Yuan
Gross Year-on-year change of Year-on-year Year-on-year
Operating revenue Costs of sales
margin operating revenue change of costs of change of gross
13
Beijing Shougang Co. Ltd Semi-Annual Report 2023
sales margin
According to industries
Metallurgy 55,599,122,827.83 52,725,471,888.88 5.17% -9.27% -6.98% -2.33%
According to products
Billet 137,297,135.04 134,524,608.66 2.02% -54.66% -47.55% -13.28%
Hot-rolled steel 24,421,717,115.92 23,123,065,070.53 5.32% -6.72% -5.49% -1.24%
Cold-rolled steel 23,064,792,967.98 22,041,998,760.18 4.43% -14.84% -13.14% -1.88%
Metallic soft
6,976,487,451.49 6,540,864,298.44 6.24% 7.37% 17.93% -8.41%
magnetic material
Other steels 998,828,157.40 885,019,151.07 11.39% -17.62% -15.02% -2.72%
According to regions
North China 18,416,471,616.47 17,603,447,258.41 4.41% -11.57% -9.41% -2.29%
Northeast China 1,415,574,393.06 1,406,777,554.82 0.62% -8.66% -7.59% -1.16%
East China 16,566,019,818.33 15,650,232,369.37 5.53% -10.33% -8.31% -2.08%
Mid-South China 7,476,690,712.67 7,056,814,329.93 5.62% -9.39% -9.16% -0.24%
South China 5,550,606,810.75 5,150,939,156.61 7.20% -10.28% -9.25% -1.05%
Southwest China 1,395,468,272.81 1,309,519,511.26 6.16% -10.60% -7.49% -3.16%
Northwest China 127,111,951.10 125,235,120.17 1.48% -8.44% -8.90% 0.50%
Export 4,651,179,252.64 4,422,506,588.31 4.92% 8.39% 20.72% -9.71%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest on year’s scope of period-end.
□Applicable √ Non applicable
IV. Non-principal business analysis
□ Applicable √ Non applicable
V. Assets and liabilities
1. Significant changes in the composition of assets
Unit: RMB Yuan
30 June 2023 31 December 2022 Proportion
Notes
Amount Proportion Amount Proportion changes
Cash and Cash
7,498,105,524.69 5.30% 9,470,472,522.05 6.61% -1.31%
equivalents
Accounts receivable 1,561,766,163.98 1.10% 1,450,008,897.10 1.01% 0.09%
Inventories 12,216,145,045.92 8.63% 11,960,246,748.15 8.35% 0.28%
Long-term equity
2,566,256,714.59 1.81% 2,724,285,925.35 1.90% -0.09%
investments
Fixed assets 90,739,924,821.37 64.08% 93,331,072,969.17 65.19% -1.11%
Construction in
5,710,993,798.69 4.03% 7,673,649,852.77 5.36% -1.33%
progress
Right-of-use assets 74,922,597.56 0.05% 83,107,359.45 0.06% -0.01%
Short-term
28,483,601,889.04 20.12% 29,580,006,103.39 20.66% -0.54%
borrowings
Contract liabilities 5,043,291,760.66 3.56% 4,508,016,725.74 3.15% 0.41%
Long-term
10,914,950,000.00 7.71% 10,594,350,000.00 7.40% 0.31%
borrowings
Lease liabilities 63,956,202.06 0.05% 72,439,836.79 0.05% 0.00%
2. Major overseas assets
□Applicable √ Non applicable
3. Assets and liabilities measured at fair value
√ Applicable □ Non applicable
14
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Unit: RMB Yuan
Fair value Accumulated fair Impairment Amount of
Amount of sales in Other
Item Opening balance changes in value changes in accrual in purchase in Closing balance
the period changes
the period equity the period the period
Financial assets
Other equity
instruments 232,766,133.81 276,593,703.74 509,359,837.55
investments
Other non-current
79,234,007.60 0.00 79,234,007.60
financial assets
Financing
3,489,134,871.56 6,325,120,221.92
receivables
Total 3,801,135,012.97 0.00 276,593,703.74 0.00 0.00 0.00 0.00 6,913,714,067.07
Financial
0.00 0.00
liabilities
Other changes
Whether the measurement attributes of the company's main assets have changed significantly during the reporting period.
□ Yes √ No
4. Major restricted assets at the end of the reporting period
Item Carrying amount at 30 June 2023 Restriction reason
Cash and Cash equivalents 482,089,076.86 All kinds of deposits
Notes receivable 87,759,217.36 Pledged notes
Accounts receivable 44,772,339.34 Pledged notes
Total 614,620,633.56
VI. Investment analysis
1. Overall situation
√ Applicable □ Non applicable
Invested amount during the reporting period Investment amount during the previous reporting period
Change
(RMB Yuan) (RMB Yuan)
1,401,733,364.15 2,252,874,010.20 -37.78%
2. Significant equity investment during the reporting period
□ Applicable √ Non applicable
3. Significant non-equity investment during the reporting period
√ Applicable □ Non applicable
Unit: RMB Yuan
Reasons for
Fixed Actual Realized
non-achievement
asset Related Investment amount investment income up to Date of Index of
Project Investme Capital Project Anticipated of planned
investme industri during the reporting amount up to the the end of disclosure disclosure
name nt method source schedule benefits schedule and
nt or not es period end of reporting reporting (if any) (if any)
anticipated
(Y/N) period period
income
Zhixin
Co. Iron The devices of
Oriented Self-built Y and 0.00 1,314,052,905.22 Self-raised 88.23% 391,380,000.00 0.00 the project are
phase II steel being installed
project
Zhixin
Co.
High-end
Iron The project is
heat
Self-built Y and 453,152,107.98 636,883,710.86 Self-raised 36.93% 436,810,000.00 0.00 undergoing civil
treatment
steel construction
engineeri
ng
project
Total -- -- -- 453,152,107.98 1,950,936,616.08 -- -- 828,190,000.00 0.00 -- -- --
4. Financial assets investment
(1) Securities investment
□ Applicable √ Non applicable
The Company has no securities investment during the reporting period.
(2) Derivatives investment
□ Applicable √ Non applicable
The Company has no derivatives investment during the reporting period.
5. Use of raised funds
√ Applicable □ Non applicable
(1) Overall use of raised funds
√ Applicable □ Non applicable
Unit: RMB’0,000
15
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Total raised
Proportion of
Total raised funds with Total Use and
Total raised total Total raised Raised funds
funds that have altered accumulative ownership
Year for Method of Total raised funds that have accumulative funds that have that have been
been used in purposes raised funds change of
fund-rai sing fund-raising funds been used raised funds not been used left unused for
the current during the with altered unused raised
accumulatively with altered yet over two years
period Reporting purposes funds
purposes
Period
Deposit in
Non-public Jingtang Co.
2022 29,120 3,246.3 25,098.63 0 0 0.00% 3,696.13 0
offering fund raising
special account
Total -- 29,120 3,246.3 25,098.63 0 0 0.00% 3,696.13 -- 0
Explanation of the overall use of raised funds
In 2022, the total amount of supporting funds raised by the Company through non-public issuance of ordinary shares is RMB 291,199,983.58, and after deducting the underwriting fees
of the lead underwriter, the special account of the Company for raising funds received subscription funds of RMB 287,603,983.82; After deducting the fees of independent financial
advisers and other related fees for the restructuring, the net capital raised is RMB 273,368,221.41.
As of 30 June 2023, the company has used the raised funds of RMB 250,986,264.39, among which, a. the Company has used RMB 151,603,440.25 to supplement working capital and
repay debts; and b. transferred RMB 136,149,157.84 to the special account of Jingtang Co. for the comprehensive transformation project of energy saving and consumption reduction of
the front railway system, of which, RMB 99,382,824.14 has been used.
As of 30 June 2023, the accumulated interest income generated by the raised funds is RMB 343,568.22, the balance of the special account for the raised funds of the Company is RMB
0.00, and the balance of the special account for the raised funds of Jingtang Co. is RMB 36,961,287.65.
(2) Committed projects of raised funds
√ Applicable □ Non applicable
Unit: RMB’0,000
Accumul
Whether Invest ment
The ative Date when Whet her
projects Total progre ss as Benef its Whet her
Adjusted investme nt investme nt the projec ts there are
Committed investment have been committe d of the end recor ded the estim
total amount amount as are ready mater ial
projects and investment of altered investme nt of the durin g the ated benefi
investme nt during the of the end for their chang es in
excessive raised funds (including with raised Report ing Repor ting ts are reach
amount (1) Reporting of the intend ed the proje ct
partial funds Period (3) = Perio d ed
Period Reporting use feasib ility
alternation) (2)/(1)
Period (2)
Committed investment projects
Jingtang Co. railway front
system energy saving and
Not
consumption reduction No 125,000 13,614.92 3,246.3 9,938.28 73.00% No
applicable
comprehensive
transformation project
Not
Supplementary liquidity No 125,000 15,160.34 0 15,160.34 100.00% No
applicable
Subtotal of committed
-- 250,000 28,775.26 3,246.3 25,098.62 -- -- 0 -- --
investment projects
Investment of excessive raised funds
None
Total -- 250,000 28,775.26 3,246.3 25,098.62 -- -- 0 -- --
Explain the circumstances and
reasons for failing to achieve
the planned progress and
estimated income by item Not applicable
(including the reasons why
"Reach the estimated benefit" is
selected as "Not applicable")
Explanations of the material
Not applicable
changes in the project feasibility
Amount, use, and use progress
Not applicable
of excessive raised funds
Change of the implementation
location of the investment Not applicable
project raised funds
Adjustment of implementation
methods of investment projects Not applicable
with raised funds
Advance investment and
replacement of investment Not applicable
projects with raised funds
Temporary replenishment of
working capital with the idle Not applicable
raised funds
Surplus raised funds for project
impleme ntation and reasons for Not applicable
the surplus
It is mainly used for the cost of oxygen enrichment and oxygen production equipment before the new pressure swing
Use and destination of
adsorption machine of the iron front system energy saving and consumption reduction comprehensive renovation project,
unutilized raised funds
which is deposited in the special account of Jingtang Co. for raising funds.
16
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Problems in the use of raised
funds and disclosure, or other Not applicable
cases
(3) Altered projects of raised funds
□ Applicable √ Non applicable
The Company has no altered projects of raised funds in the reporting period.
VII. Material disposal of assets and equity
1. Material disposal of assets
□ Applicable √ Non applicable
The Company has no disposal of assets during the reporting period.
2. Material disposal of equity
□ Applicable √ Non applicable
VIII. Analysis of main holding companies and stock-jointly companies
√ Applicable □ Non applicable
Main subsidiaries and stock-jointly companies that have an impact on the company's net profit of over 10%.
Unit: RMB Yuan
Company Name Type Main business Registered capital Total assets Net assets Operating revenue Operating profit Net profit
Iron and steel smelting, steel rolling, other
metal smelting and calendering processing
Shougang Jingtang and marketing; Production and sale of sinter,
United Iron & Steel Subsidiary pellet, coke and chemical products; Power 35,821,676,294.00 77,936,070,714.91 35,590,575,383.81 34,562,573,418.57 153,024,916.13 120,338,896.99
Co., Ltd. generation and supply; Production and sales
of secondary and multiple energy and
resource reuse products
Cold-rolled electrical steel strip
manufacturing; Metallurgical special
equipment manufacturing; Motor
manufacturing; Manufacturing of
transmission, distribution and control
Shougang Zhixin equipment; Energy-saving technology
Qian'an promotion services; New material technology
Subsidiary 11,001,137,201.36 21,045,965,268.27 13,880,886,140.91 7,253,294,653.45 247,133,456.12 211,419,481.66
Electromagnetic promotion services; Business management
Materials Co., Ltd. consulting services; Industrial design services;
Product quality inspection services; Building
materials, non-metallic minerals and products,
metal materials, metal products, chemical
products (excluding dangerous chemicals)
wholesale and retail
Production of cold rolled sheet, hot dip
Beijing Shougang galvanized steel coil; General freight; Design
Cold Rolling Co., Subsidiary and sales of cold-rolled sheet, hot-dip 2,600,000,000.00 5,869,037,167.20 -1,056,925,279.55 5,133,807,057.85 1,089,593.59 1,023,195.52
Ltd. galvanized steel coil; Warehousing services;
Technical development, technical consultation
Beijing Shougang
Investment management; Project investment;
Steel Trading
Asset management; Warehousing services;
Investment Subsidiary 1,136,798,235.00 20,290,248,903.42 12,173,925,133.19 485,715,805.45 72,441,937.92 63,237,265.06
Market research; Technology development;
Management Co.,
Sale of steel
Ltd.
Technology development, technology
consulting, technology transfer, technology
services; Business management consulting;
Beijing Shougang
Economic information consulting; Sales of
New Energy
Subsidiary machinery and equipment, steel; Rental of 750,000,000.00 886,239,096.69 886,238,664.90 0.00 7,093,138.50 7,092,706.71
Automobile Material
machinery and equipment (except motor
Technology Co., Ltd.
vehicles); Import and export of goods;
Technology import and export; Agent import
and export
Metallurgical technology development and
consulting services; Environmental protection
technology promotion services; Business
management consulting services; Security
consulting services; Computer application
software development; Special equipment for
Qian'an Shougang
environmental protection, steel slag, water
Metallurgical Subsidiary 1,900,000.00 211,079,353.59 -82,015,806.09 19,007,560.91 3,359,539.79 3,359,539.79
slag, slag, dust removal ash, desulfurization
Technology Co., Ltd.
ash, steel, chemical products (excluding
hazardous chemicals) wholesale, retail;
Domestic advertising design, production,
agency, release; Non-owned house leasing
services, etc. (within the scope authorized by
the owner of the house)
Coking; Coke oven gas, tar, crude benzene,
sulfur, ammonium sulfate, ammonium
thiocyanate, primary coal chemical products
manufacturing; Waste heat utilization;
Hardware products, building materials,
mining special equipment and spare parts,
Qian'an Sinochem construction machinery spare parts, rubber
Coal Chemical Joint stock products, plastic products, lubricating grease, 992,400,000.00 4,206,826,582.33 1,523,700,609.13 4,114,928,997.89 -258,679,755.26 -259,578,672.13
Industrial Co., Ltd. pig iron, ferroalloy, iron concentrate powder,
pellet iron ore, sintered iron ore, iron ore,
limestone, quartzite, dolomite, furnace charge,
bentonite, coke, coke powder, billet, chemical
products (excluding licensed chemical
products), coal wholesale, zero Sell; Coking
technical consultation and service
Coke, coal tar, benzene, sulfuric acid,
Tangshan Shougang ammonium sulfate, gas, CDQ coke waste heat
Jingtang Xishan Joint stock power generation, steam production and sales; 2,000,000,000.00 3,578,464,565.18 2,212,267,132.18 6,192,335,209.86 31,093,408.05 8,705,677.85
Coking Co., Ltd. Technical consulting services; Labor service
(excluding labor dispatch).
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable √ Non applicable
Description of the main holding and participating companies
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Not Applicable
IX. Structured entity controlled by the Company
□ Applicable √ Non applicable
X. Risks facing the Company and countermeasures
During the reporting period, there were no significant changes in the main businesses, performance drivers and operating
environment of the Company and its major holding subsidiaries. The Company will continue to face changes in various risk factors
such as policy and industry risks, low-carbon environmental protection risks, industry competition risks, marketing risks, affiliated
transaction risks, etc. The Company will take active measures to deal with these risks, as detailed in the 2022 annual report.
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Section IV. Corporate Governance
I. General shareholders’ meetings and extraordinary shareholders’ general meeting during
the reporting period
1. Information on the general shareholders meeting
Investor
Sessions Type Date Date of Disclosure Conference resolution
participation ratio
Annual General Please refer to the company announcement
2022 Annual General
Shareholders 84.22% 30 June 2023 1 July 2023 on the disclosure date of the meeting
Meeting
Meeting resolution
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
II. Change in shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
There was no changes in the directors, supervisors and senior management of the Company during the reporting period, as detailed in
the 2022 Annual Report.
III. Porposal for profit distribution and transfer of capital reserve to share capital
□ Applicable √ Not applicable
The Company planed not to distribute cash dividends, bonus shares or increase share capital with provident fund in half year.
Ⅳ. Implementation of the equity incentive plan, employee shareholding plan or other
employee incentive measures of the Company.
√ Applicable □ Not applicable
1. Equity incentive
In 2021, the company implemented equity incentives for 386 directors, executive officers and other personnel, as detailed in the
relevant announcement issued by the company on November 13, 2021.
On April 19, 2023, the Company held the eighth session of the second board of Directors meeting, the eighth session of the second
Board of Supervisors meeting, and the 2022 annual general meeting of shareholders on June 30, 2023, respectively, deliberated and
passed the "Beijing Shougang Co., Ltd. on the purchase and cancellation of some restricted Shares of the 2021 Restricted Stock
Incentive Plan and other matters." Because the company's 2022 annual performance assessment indicators do not meet the
company-level performance assessment conditions of the lifting restriction conditions of the first lifting restriction period stipulated
in the Beijing Shougang Co., Ltd. 2021 Restricted Stock Incentive Plan (Draft Revision), and 15 incentive objects do not meet the
incentive conditions due to organizational or personal reasons, The Company will repurchase and cancel a total of 23,418,884
restricted shares that have been granted but have not yet been lifted. Participate in the relevant announcement issued by the company
on April 21, 2023.
2. Implementation of employee stock ownership plan
□ Applicable √ Not applicable
3. Other employee incentive measures
□ Applicable √ Not applicable
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Section V. Environment and Social Responsibility
I. Major environmental protection matters
Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the environmental
protection department
√ Yes □ No
Environmental protection related policies and industry standards
The policies and industry standards related to environmental protection implemented by the Company and its subsidiaries mainly
include: Environmental Protection Law of the People's Republic of China, Cleaner Production Promotion Law of the People's
Republic of China, Air Pollution Prevention and Control Law of the People's Republic of China, Water Pollution Prevention and
Control Law of the People's Republic of China, Environmental Pollution Prevention and Control Law of the People's Republic of
China by Solid Waste, Noise Pollution Prevention and Control Law of the People's Republic of China, Soil Pollution Prevention and
Control Law, Environmental Impact Assessment Law of the People's Republic of China, Regulations on the Administration of
Pollutant Emission Permits, Regulations of Hebei Province on Ecological and Environmental Protection, Ultra-Low Emission
Standards of Air Pollutants for the Iron and Steel Industry, Regulations of Tangshan City on Ecological and Environmental Protection,
etc.
Administrative license for environmental protection
During the reporting period, Qiangang Co. successively completed the transformation project of steel slag production line pressing
ball line drying equipment and the EIA approval work of nine general decline project, which ensured the compliance of
environmental protection projects in accordance with the law. In February 2023, the second series of pellets, two 360 flat sintering
machines and their affiliated facilities were transferred from the Mining company's discharge permit to the Qian Steel Company's
discharge permit, valid until July 2028.
Jingtang Co. adheres to the principle of attaching equal importance to production development and environmental protection, so it
carries out environmental impact assessment of construction projects strictly in accordance with the Environmental Impact
Assessment Law of the People's Republic of China. In the process of project implementation, Jingtang Co. carries out construction
strictly in accordance with the EIA approval, and all construction projects are supporting the construction of environmental protection
facilities, environmental protection approval procedures are complete, which meets the requirements of "three simultaneous"
management of environmental protection. In August 2017, Jingtang Co. obtained a new version of the sewage discharge permit
issued by Tangshan Environmental Protection Bureau, which enabled the construction of the second-phase one-step project to
proceed smoothly. In April 2019, Jingtang Co. completed the change of sewage discharge permit and obtained relevant certificates,
and incorporated the sewage discharge outlet of the second-phase one-step project into standardized management. In August 2020,
Jingtang Co. completed the extension of the sewage discharge permit, with the validity period extended to August 2025. In February
2023, the permit was renewed again, this time extending until February 2028.
In strict accordance with the Environmental Impact Assessment Law of the People's Republic of China, Regulations on Pollutant
Emission Permit Management and other laws and regulations, according to the requirements of pollutant emission permit and EIA
management, Zhixin Co. continues to improve the post- emission permit management work, and continues to do a good job in EIA
and acceptance. In February 2023, Zhixin Co. handled the re-application of pollution permit, handled the change of pollution permit
in May 2023, and the valid period was extended to February 2028. In March 2023, the environmental acceptance procedures for the
completion acceptance of the Zhixin Electromagnetic new energy automotive electrical steel project will be completed, and the
environmental acceptance procedures for the completion acceptance of the environmental protection ability improvement project of
the Zhixin electromagnetic wastewater station will be completed in April 2023.
In October 2017, Cold-R Co. obtained the first pollutant emission permit for key enterprises in Shunyi District, Beijing. In September
2020, Cold-R Co. submitted an application for the renewal of the sewage permit in accordance with relevant regulations, and in
October 2022, the application passed the government review, which extended the validity of the permit to October 2025.
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Industrial discharge standards and details of the discharge of pollutants involved in production and business activities
Types of major Names of major
Total Total approved Emissions
Name of Company pollutants and pollutants and No. of Emission Implemented pollutant
Way of Discharge Distribution of emission drains emissions emissions exceed the
or Subsidiary characteristic characteristic drains concentration emission standards
(tons) (tons) standard
contaminants contaminants
COD (Chemical
Qiangang Co. Water pollutant Direct 1 Wastewater discharge port 5.62mg/L 50mg/L 1.217 648.399 No
Oxygen Demand)
Ammonia
Qiangang Co. Water pollutant Direct 1 Wastewater discharge port 0.16mg/L 5mg/L 0.0366 64.899 No
Nitrogen
Power station boiler chimney, Sintering, pelletizing
sintering machine head flue gas < 9.54mg/mblast Sintering, pelletizing <
outlet, pellet roasting flue gas furnace hot blast 35mg/mblast furnace hot
outlet, CCPP combustion exhaust furnace, rolling steel blast furnace, rolling steel
Qiangang Co. Air pollutants Sulfur Dioxide Organized 32 507.4 732.99 No
gas, blast furnace hot blast heating furnace, lime heating furnace, lime kiln <
furnace outlet, steel rolling kiln < 24mg/m 50mg/mpower generation <
heating furnace outlet, white ash power generation < 35mg/m
kiln roof, sleeve kiln roof 22mg/m
Power station boiler chimney, Sintering, pelletizing
sintering machine head flue gas < 38mg/mblast Sintering, pelletizing <
outlet, pellet roasting flue gas furnace hot blast 50mg/mblast furnace hot
outlet, CCPP combustion exhaust furnace, rolling steel blast furnace, rolling steel
Qiangang Co. Air pollutants Nitrogen Oxides Organized 32 580.46 1516.2 No
gas, blast furnace hot blast heating furnace, lime heating furnace, lime kiln <
furnace outlet, steel rolling kiln < 34mg/m 150mg/mpower generation
heating furnace outlet, white ash power generation < < 100mg/m
kiln roof, sleeve kiln roof 33mg/m
Power station boiler chimney,
sintering machine head flue gas
outlet, pellet roasting flue gas Sintering, pelleting <
outlet, blast furnace iron field 3.5mg/mblast
Sintering, pelletizing <
dust removal, blast furnace silo furnace hot blast
10mg/mblast furnace hot
dust removal, steelmaking furnace, rolling steel
blast furnace, rolling steel
Qiangang Co. Air pollutants Particulate Matter Organized 133 converter secondary dust heating furnace, lime 853.46 1151.46 No
heating furnace, lime kiln <
removal, converter primary dust kiln, other
10mg/mpower generation <
removal, CCPP combustion environment <
5mg/m
exhaust gas, hot rolling heating 7.5mg/mpower
furnace exhaust gas, generation < 4mg/m
environmental dust removal,
material transfer exhaust gas
Boiler chimney of power station
of thermoelectric branch plant,
Sintering, pelletizing
flue gas outlet of sintering
< 15mg/mblast
machine head, flue gas outlet of Sintering, pelletizing <
furnace hot blast
pellet roasting, primary flue gas 35mg/mblast furnace hot
furnace, rolling steel
dust removal 1#, primary flue gas blast furnace, rolling steel
heating furnace, lime
Jingtang Co. Air pollutants Sulfur Dioxide Organized 50 dust removal 2#, secondary flue heating furnace, lime kiln < 305.9 1448.11 No
kiln < 25mg/m
gas dust removal 2#, secondary 50mg/mcoke oven flue gas
coke oven flue gas <
flue gas dust removal on silo of < 30mg/mcoal-fired power
15mg/mcoal-fired
1# and 2# blast furnace, generation < 35mg/m
power generation <
secondary dust removal from 1#
10mg/m
decarbonization converter,
secondary dust removal from 2#
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Types of major Names of major
Total Total approved Emissions
Name of Company pollutants and pollutants and No. of Emission Implemented pollutant
Way of Discharge Distribution of emission drains emissions emissions exceed the
or Subsidiary characteristic characteristic drains concentration emission standards
(tons) (tons) standard
contaminants contaminants
decarbonization converter, coke
oven chimney 3 emissions Port,
coke pushing machine ground
station discharge port, coke dust
removal 3 discharge port, dry
extinguishing dust removal 3
discharge port, dry extinguishing
dust removal 4 discharge port, 7#
converter secondary dust
removal, CCPP combustion
exhaust gas, 6# converter
secondary dust removal, etc
Boiler chimney of power station
of thermoelectric branch plant,
flue gas outlet of sintering
machine head, flue gas outlet of
pellet roasting, primary flue gas
dust removal 1#, primary flue gas
dust removal 2#, secondary flue
gas dust removal 2#, secondary Sintering < 25mg/m
flue gas dust removal on silo of pelletizing <
1# and 2# blast furnace, 30mg/mblast Sintering, pelletizing <
secondary dust removal from 1# furnace hot blast 50mg/mblast furnace hot
decarbonization converter, furnace, rolling steel blast furnace, rolling steel
Jingtang Co. Air pollutants Nitrogen Oxides Organized 46 secondary dust removal from 2# heating furnace, lime heating furnace, lime kiln < 684 2958.36 No
decarbonization converter, coke kiln < 50mg/m 150mg/mcoke oven flue gas
oven chimney 3 emissions Port, coke oven flue gas < < 130mg/mcoal-fired power
coke pushing machine ground 45mg/mcoal-fired generation < 50mg/m
station discharge port, coke dust power generation <
removal 3 discharge port, dry 30mg/m
extinguishing dust removal 3
discharge port, dry extinguishing
dust removal 4 discharge port, 7#
converter secondary dust
removal, CCPP combustion
exhaust gas, 6# converter
secondary dust removal, etc
Boiler chimney of power station
Sintering, pelletizing
of thermoelectric branch plant,
< 5mg/mblast
flue gas outlet of sintering Sintering, pelletizing <
furnace hot blast
machine head, flue gas outlet of 10mg/mblast furnace hot
furnace, rolling steel
pellet roasting, primary flue gas blast furnace, rolling steel
heating furnace, lime
Jingtang Co. Air pollutants Particulate Matter Organized 219 dust removal 1#, primary flue gas heating furnace, lime kiln < 914.8 2106.12 No
kiln < 8mg/mcoke
dust removal 2#, secondary flue 10mg/mcoke oven flue gas
oven flue gas <
gas dust removal 2#, secondary < 10mg/mcoal-fired power
8mg/mcoal-fired
flue gas dust removal on silo of generation < 10mg/m
power generation <
1# and 2# blast furnace,
5mg/m
secondary dust removal from 1#
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Types of major Names of major
Total Total approved Emissions
Name of Company pollutants and pollutants and No. of Emission Implemented pollutant
Way of Discharge Distribution of emission drains emissions emissions exceed the
or Subsidiary characteristic characteristic drains concentration emission standards
(tons) (tons) standard
contaminants contaminants
decarbonization converter,
secondary dust removal from 2#
decarbonization converter, coke
oven chimney 3 emissions Port,
coke pushing machine ground
station discharge port, coke dust
removal 3 discharge port, dry
extinguishing dust removal 3
discharge port, dry extinguishing
dust removal 4 discharge port, 7#
converter secondary dust
removal, CCPP combustion
exhaust gas, 6# converter
secondary dust removal, etc
Continuous annealing furnace,
regular annealing furnace,
Zhixin Co. Air pollutants Sulfur Dioxide Organized 50 decarbonization annealing <30mg/m3 30mg/m3 2.815 45 No
furnace, ring furnace, hot drawing
furnace
Continuous annealing furnace,
regular annealing furnace,
Zhixin Co. Air pollutants Nitrogen Oxides Organized 50 decarbonization annealing <100mg/m3 100mg/m3 21.204 131.649 No
furnace, ring furnace, hot drawing
furnace
Acid regeneration, continuous
Heat treatment furnace, pull
annealing furnace, constant Acid regeneration <
3 straightening machine,
annealing furnace, 30 mg/m , heat
Zhixin Co. Air pollutants Particulate Matter Organized 69 finishing and shot blasting: 10 10.178 19 No
decarbonization annealing treatment furnace,
mg/m3, acid regeneration: 30
furnace, ring furnace, hot drawing score < 10 mg/m3
mg/m3
furnace, scoring
Cold-R Co. Water pollutant COD Organized 1 Wastewater stations 1.39-24.12 mg/m3 30mg/m3 6.4516 67.5 No
Ammonia
Cold-R Co. Water pollutant Organized 1 Wastewater stations 0.01-0.86mg/m3 1.5(2.5) mg/m3 0.0848 3.937 No
Nitrogen
Furnace and dust removal
Cold-R Co. Air pollutants Sulfur Dioxide Organized 8 Around the plant 3 mg/m3 chamber: 20 mg/m3； boiler 1.9401 18 No
room: 10 mg/m3
Furnace and dust
Furnace and dust removal
removal chamber:
Cold-R Co. Air pollutants Nitrogen Oxides Organized 8 Around the plant chamber: 100 mg/m3； boiler 31.0166 148.184 No
1-97 mg/m3； boiler
room: 80 mg/m3
room: 1-79 mg/m3
Furnace and dust
Furnace and dust removal
removal chamber:
Cold-R Co. Air pollutants Particulate Matter Organized 10 Around the plant chamber:10 mg/m3； boiler 9.7469 18.75 No
1-9 mg/m3； boiler
room: 5 mg/m3
room: 1-4.43 mg/m3
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Treatment of pollutants
Each production process of Qiangang Co. is equipped with perfect environmental protection facilities, which will be regularly
monitored by qualified testing departments. The test results prove that all dust removal facilities achieve ultra-low emission and the
emission concentration of bag dust collector reaches less than 10 mg/m The key pollution sources of Qiangang Co. are equipped
with 57 sets of online monitoring systems, including 1 set of online monitoring system for water pollution, which are all connected
with the ecological environment department. The online monitoring system is compared and monitored quarterly by a qualified
monitoring company, which ensures that the data is true and reliable. Qiangang Co. attaches great importance to saving water
resources and reducing wastewater discharge, so it has invested in the construction of two sewage treatment plants, and the
construction of deep water desalting station, which adopts the international advanced membrane treatment process, can all the
wastewater generated in the production process after treatment and recycling, so the water recycling rate of Qiangang Co. reaches
98.4%.
Jingtang Co. has desulfurization denitrification and other waste gas treatment facilities, which can be highly efficient treatment of all
kinds of waste gas, but also built complete dust removal facilities, the measures using bag dust removal, plastic burning plate dust
removal, electric dust removal and other ways to remove particulate matter; Coke oven flue gas is removed by moving bed calcium
desulfurization +SCR denitration process. The sintering and pellet were removed by circulating fluidized bed desulfurization and
SCR denitration process. Desulfurization of self-built power plant adopts seawater desulfurization +SCR denitration process to
remove, and dense coherent tower desulfurization +SCR denitration process to blast furnace hot blast furnace. Jingtang Co. has
complete wastewater treatment facilities, including coking phenol cyanide sewage treatment system, continuous casting wastewater
treatment system, hot rolling, cold rolling, medium thickness plate, steel rolling wastewater treatment system and comprehensive
sewage treatment station, etc. At the same time, the production wastewater generated by steelmaking and other processes is treated
into the comprehensive sewage treatment station for treatment, so as to achieve coupling zero discharge of wastewater. Jingtang Co.
has complete solid waste treatment facilities, including the construction of rotary hearth furnace - zinc resource recycling project,
slag fine grinding cement production line, etc., to achieve comprehensive utilization of solid waste. During the reporting period, all
the above environmental protection facilities ran well, and all processes in the whole process reached ultra-low emission standards.
Zhixin Co. continues to promote the emission reduction of pollutants, in accordance with the "green project" transformation plan, in
May 2023 to complete the source management project CA5 denitrification transformation, effectively reduce nitrogen oxide
emissions. Continue to carry out environmental protection capacity improvement projects, all meet the ultra-low emission standards
of Hebei Province, in order to eliminate the odor of waste water station odor removal projects have completed acceptance work,
Zhixin electromagnetic independent control and management measures through the construction of efficient car wash and continue to
improve the automatic function, effectively reduce the atmospheric dust pollution in the plant.
During the reporting period, the pollution prevention and control facilities of Cold-R Co. maintained efficient operation, and all
combustion exhaust gas was generated by using clean fuel natural gas through low nitrogen burners, which minimized the
concentration of pollutants. The dust generated in the production of Cold-R Co. is disposed of by coated bag dust collector, and the
filtration effect reaches 99.99%. The wastewater generated by the cold rolling company is treated by physical, chemical, biochemical
and membrane processes and discharged after treatment. The emission concentration of all pollutants of Cold-R Co. maintains the
leading level in China, and the emissions are far lower than the permitted emissions.
Contingency plan
No ecological and environmental emergencies occurred in the Company and its holding subsidiaries in first half of 2023.
In accordance with the Environmental Protection Law of the People's Republic of China and other laws, regulations, rules and
normative documents, Qiangang Co. has formulated the Emergency Plan for Environmental Emergencies. On this basis, Qiangang
Co. also formulated three special plans respectively: Atmospheric Special Emergency Plan for Environmental Emergencies, Water
Special Emergency Plan for Environmental Emergencies and Hazardous Waste Special Emergency Plan for Environmental
Emergencies, which further improved the emergency disposal capacity of air pollution, water pollution and hazardous waste
emergencies.
Jingtang Co. identified gas storage cabinets, pipelines, benzene storage tanks, acid storage tanks, liquid ammonia storage tanks and
other dangerous chemicals and toxic and harmful substances production and storage areas as emergency rescue dangerous targets.
According to the requirements of Shougang Jingtang United Iron&Steel Co., Ltd. 's Emergency Treatment Plan for Environmental
Emergencies (Fourth Edition), in first half of 2023, Jingtang Co. carried out 8 emergency drills such as oil leakage emergency drill,
oily sludge leakage emergency drill and radiation accident emergency drill, which ensures that Jingtang Co. can effectively carry out
rescue in accordance with the requirements of the Plan. At the same time, the emergency drills also improve the skills and actual
combat ability of preventing and dealing with sudden environmental pollution accidents.
In accordance with the requirements of laws and regulations, Zhixin Co. has prepared and put on record the Emergency Plan for
Environmental Emergencies, which mainly consists of atmospheric special plan, water special plan, hazardous waste disposal, risk
assessment, emergency resource investigation, on-site disposal plan and other plans. In first half of 2023, Zhixin Co. mainly
conducted drills for acid leakage, gas leakage and other risk points. Through the drill, Zhixin Co. found problems and rectifies them
in time, which enhanced the company's ability to deal with environmental emergencies.
In accordance with the requirements of laws and regulations, Cold-R Co. has prepared and put on record the Emergency Plan for
Environmental Emergencies. According to the plan, Cold-R Co. organizes drills in each workshop every year according to the
requirements of the plan, through which problems are found and rectifies in time, which enhances Cold-R Co.'s ability to deal with
environmental emergencies.
Environmental protection input and environmental protection tax
During the reporting period, Qiangang Co. continued to implement flue gas desulfurization treatment of blast furnace hot blast
furnace, increase desulfurization facilities of hot rolling heating furnace, and continue to improve 5 projects, and completed an
investment of RMB 210 million in the year. In first half of 2023, Qiangang Co. paid RMB 4.6733 million of environmental
protection tax, with a reduction of RMB 2.6050 million.
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Jingtang Company promoted the implementation of No. 1 and No. 3 blast furnace shutdown air release gas purification project and
other four key environmental protection projects in depth, have been completed as planned. In first half of 2023, RMB 12.805 million
of environmental protection tax was paid, with a reduction of RMB 4.781 million.
Zhixin Co. effectively reduced pollutant emissions by increasing environmental protection treatment facilities, completed investment
of RMB 9.7 million in first half of 2023 and paid for environmental protection tax, with a reduction of RMB 72,800.
Cold-R Co. actively promoted environmental management and protection work, with an investment of RMB 27.3896 million. In first
half of 2023, RMB 437,000 was paid for environmental protection tax, with a reduction of RMB 10,300.
Environmental self-monitoring programme
In accordance with the relevant provisions of the "Measures for Self-Monitoring and Information Disclosure of National Key
Monitoring Enterprises (Trial)" and "Measures for Supervisory Monitoring and information Disclosure of National Key Monitoring
Enterprises (Trial)", Qiangang Co. has established and improved the monitoring and information disclosure system of pollution
sources, formulated the "2023 Pollutant Emission Monitoring Plan", and strictly implemented it. In the first half of 2023, all
environmental monitoring is entrusted to qualified third-party institutions for monitoring, and actively organize and coordinate the
self-monitoring work, strengthen the management of online monitoring operation and maintenance units, complete the monthly
monitoring task, achieve the monitoring completion rate of 100% in the first half of 2023, and fully complete the national pollution
source monitoring information disclosure work, the standard rate of 100%.
The environmental monitoring system of Jingtang Co. is composed of automatic monitoring and manual monitoring. The manual
monitoring system is commissioned by a third-party testing institution to carry out environmental monitoring of waste gas, waste
water, noise and other projects of factory pollution sources regularly according to the "2023 Key monitoring enterprise
self-monitoring Plan" to form monitoring data and reports. In the first half of 2023, the monitoring plan was completed, and all
environmental control indicators reached normal standards.
Zhixin Co. adheres to green development, strictly adheres to the bottom line of environmental protection, and fully implements the
main responsibility of corporate environmental protection. In the first half of 2023, we will achieve zero environmental pollution,
100% synchronous operation of environmental protection facilities, and 100% smooth passage of environmental protection
inspections. In accordance with relevant laws and regulations, develop self-monitoring plans and strictly implement them, entrust all
qualified third-party institutions to monitor, and actively organize self-monitoring work, and carry out self-monitoring 38 times in the
first half of 2023, with a 100% compliance rate.
Cold-R Co. shall develop its own monitoring plan in accordance with laws and regulations and emission permit requirements, and
entrust qualified third-party institutions to monitor pollutants weekly, monthly and quarterly, and upload the data to the
government-designated information disclosure system. In the first half of 2023, all emission targets of pollution sources met the
standards.
Administrative penalties imposed due to environmental problems during the reporting period
During the reporting period, neither the Company nor its holding subsidiaries were punished by regulatory authorities in respect of
environmental protection. At the same time, the Company urges the shareholding companies to abide by the Environmental
Protection Law of the People's Republic of China and other laws, regulations, rules and normative documents.
Other environmental information that shall be disclosed
On the basis of adhering to the work of environmental protection, Qiangang Co., Jingtang Co., Zhixin Co. and Cold-R Co. monitor
and manage the national pollution source information and sharing platform and the website of the government environmental
protection department, as well as establish the information publication platform by themselves. This propagates and displays
environmental protection information such as enterprise environmental protection projects, operation of environmental protection
facilities, name and emissions of main pollution sources, monitoring methods, name of monitoring indicators, comprehensive
utilization of solid waste and so on. This is one of the ways that the company takes the initiative to accept social supervision.
Measures taken to reduce its carbon emissions during the reporting period and their effectiveness
√ Applicable □ Not applicable
In order to accelerate the implementation of national industrial policies in enterprises, scientifically and normally promote the
"carbon management" activities of Shougang shares, further improve and optimize the "low-carbon Action Plan of Shougang Shares"
and "low-carbon Development Organization Implementation Plan of Shougang Shares" in the first half of 2023, and actively carry
out low-carbon management and LCA management around the national low-carbon requirements and customer carbon reduction
needs. During the reporting period, completed two EPD releases of hot strip steel sheet and steel strip products; Organized the
construction of special lines for low-carbon products, carried out comprehensive technology low-carbon tests, and the test products
have covered all varieties from mild steel to ultra-high strength steel, and the comprehensive carbon emissions of the test products
have been reduced by more than 30%; Carry out low-carbon hot metal accounting and certification related work, improve the low
carbon line No. 2 blast furnace system data collection; The practical tool of "Low carbon smelting process condition calculation
model" is developed to calculate the carbon reduction effect under various low carbon metallurgical process conditions, which
provides a powerful calculation tool for subsequent low carbon metallurgical planning and decision-making.
Focusing on the landing of the "double carbon" strategy, actively promote the clean development of the energy structure, continue to
strengthen the basic capacity building of carbon management, vigorously promote the green upgrading of low-carbon processes,
steadily layout revolutionary deep decarbonization technology, and simultaneously promote the process of carbon reduction and
source carbon reduction, the first half of 2023 through the State grid green electricity direct procurement system to achieve about 220
million direct purchase of green electricity. Docking with customers' carbon reduction needs, solidly promote the construction of
LCA system, carry out CBAM carbon inventory and verification, and carry out the carbon footprint accounting and verification of
DD12 and 355MC brands. Continue to promote the research and development of green products, complete the LCA report of
medium and thick plate pipeline steel X80 grade, complete the submission of provincial green product declaration materials, and
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
create a green manufacturing brand image.
Zhixin company focuses on the implementation of the "double carbon" strategy and actively promotes the clean development of
energy structure. Continue to strengthen the basic capacity building of carbon management, promote the transformation of the burner
and SCR of the continuous production line, vigorously promote the green upgrading of low-carbon processes, and steadily layout the
revolutionary deep decarbonization technology; Simultaneously promote the process of carbon reduction and source carbon reduction,
actively promote the use of green electricity and photovoltaic construction, has built the project in the first half of 2023 photovoltaic
power generation 2,594,800kwh, new Zhixin electromagnetic high-end heat treatment plant installation of photovoltaic power
generation system project, and signed a contract in June 2023. Docking the carbon reduction needs of customers, steadily promote
the construction of LCA system, complete the green design product declaration of oriented electrical steel and non-oriented electrical
steel for new energy vehicles and obtain national recognition, and create a green manufacturing brand image.
Cold-R Co. adheres to the concept of green development and integrates carbon reduction into the whole process of development and
into all links of production and operation. By adjusting the product structure in first half of 2023, Cold-R Co. increased the
proportion of high value-added products and further reduced energy consumption, meanwhile, the carbon emissions decreased by
5.6% year-on-year through such as market procurement of green electricity and photovoltaic power generation and other measures.
Other environmental protection related information
In order to develop circular economy and low-carbon economy, build resource-saving, environment-friendly and low-carbon oriented
enterprises, and achieve sound and rapid development of the company, the Company started the preparation of environmental
responsibility report at the end of 2016, covering the preparation scope of Qiangang Co., Jingtang Co., Zhixin Co. and Cold-R Co.
and other subsidiaries. In June 2023, the Company's website (http://www.sggf.com.cn) released the 2022 Annual Environmental
Responsibility Report of Beijing Shougang Co., Ltd.
II.Social responsibility
1, according to the Central Committee of the Communist Party of China "Opinions on the continuous selection of the first village
Secretary and the work team to key villages" and the deployment of the Beijing Municipal Party Committee Organization
Department and the Beijing SASAC, combined with the organization Department of the Party Committee of Shougang Group Co.,
LTD., Shougang Shares and Jingtang Company each selected a staff member to serve as the first secretary of the collective economic
weak village in Beijing. During the reporting period, under the leadership of the local Party committee and government, the two staff
members conscientiously performed their duties and contributed to the implementation of the rural revitalization strategy.
2. Actively fulfill social responsibilities, expand the achievements of poverty alleviation, implement consumption poverty alleviation,
and help rural revitalization. In the first half of 2023, RMB 2.807 million yuan of agricultural materials for poverty alleviation in the
counterpart help area was purchased.
26
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Section VI. Significant Events
I.Commitments made by the company's actual controller, shareholders, related parties,
acquirers and the company and other committed parties have been fulfilled during the
reporting period and have not been fulfilled by the end of the reporting period
√ Applicable □ Not applicable
Commitment Commitment Commitment
Commitment Type Contents Implementation
party date term
Implementing.
1.According to the iron and steel industry development plan of
Shougang Group, Shougang Co. will be the only platform for the In December 2021,
development and integration of the iron and steel and upstream iron Shougang Co., Ltd. and
ore resources industry of Shougang Group in China, and eventually Shougang Group signed
achieve the overall listing of Shougang Group's iron and steel and the "Management
upstream iron ore resources business in China Service Agreement
between Shougang
2. As for the other companies of Shougang Group engaged in iron and
Group Co., Ltd. And
Shougang steel production business, if the profits could be achieved for three Refer to Beijing Shougang Co.,
Group Co., consecutive years through optimizing and adjusting the product 27 Dec. 2018 contents of Ltd. On The Affiliated
Ltd. structure and actively implementing national industrial policies and commitment Enterprises of
environmental protection requirements, and the overall situation of the
Shougang Group Co.,
industry does not appear large fluctuation, Shougang Group will
Ltd. ". Shougang Co.,
activate the manners in line with the interests of shareholders of listed
Ltd. provides
companies, including but not limited to acquisition, merger,
management services
reorganization, etc. to invest relevant high-quality assets in Shougang
for a total of 14 target
Co. in accordance with the requirements of securities laws, regulations
enterprises in the steel
and industrial policies, and will complete the investment within 36
sector of Shougang
months after start-up.
Group.
When the market improves in the future, Shougang Mining
Corporation achieves stable profits for two consecutive years, and the
overall situation of the industry is not fluctuated greatly, Shougang
Corporation will start the injection of Shougang Mining Corporation
in Shougang Co. and complete it within 36 months. Before Shougang
Mining Corporation joined in Shougang Co., Shougang Group will
Shougang Refer to
urge Shougang Mining Corporation to conduct necessary related party
Group Co., 20 Apr. 2017 contents of Implementing.
transactions with Shougang Co. in accordance with fair and reasonable
Ltd. commitment
market price, strictly conform to the requirements of laws and
regulations, normative documents, the articles of association of
Shougang Co. and related transaction management system, and
perform the corresponding review, approval and information
disclosure procedures for the necessary related transactions between
Shougang Co. and Shougang Mining Corporation.
The company will not damage the independence of Shougang Co. due
to the increase of the proportion of shares held by Shougang Co. after After the
Commitment in assets the completion of the reorganization. The company will maintain "the completion of
restructuring Shougang five-aspect separation principle", which means assets, personnel, assets
Implementing of the
Group Co., financial affairs, institution and business should be independent of 20 Jul. 2012 reorganization
long-term commitment.
Ltd. Shougang Co., strictly conform to relevant provisions of the CSRC on (completion
the independence of listed companies, not illegally utilize Shougang date: 25 April
Co. to provide guarantees, not illegally occupy the assets of Shougang 2014)
Co. and keep and maintain the independence of Shougang Co.
Shougang Group is the largest shareholder and controlling shareholder
of Shougang.
On July 17, 2012, Shougang Group issued the "Letter of Commitment
of Shougang Corporation on Reducing and Standardizing Related
Party Transactions" (i.e. the commitments listed above, hereinafter
referred to as the "original letter of commitment"), and promised that
after the completion of major asset replacement purchase of assets by
issuing shares between Shougang Co., and Shougang Group
[hereinafter referred to as "the previous major asset restructuring
(completed on April 25, 2014)", Shougang Group will take relevant
measures including joining Shougang Mining Company into
Shougang Co., to reduce and standardize related party transactions
with Shougang Co. In order to reduce and standardize the related party
transactions after the major asset replacement and related party During and
Shougang
transactions of Shougang Co. and safeguard the legitimate rights and 29 Sep. 2015 after the
Group Co., Implementing
interests of Shougang Co. and its public shareholders, the company assets
Ltd.
promises to continue to fulfill the contents of the original commitment replacement
letter after the major asset replacement, and further promises as
follows:
1. The company will perform its obligations as the controlling
shareholder of Shougang Co. in good faith, try to avoid and reduce the
related transactions with Shougang Co. (including the enterprises it
controls); as for the related transactions, which are unavoidable or
occur for reasonable reasons between the company and other
enterprises under the control of the company, and Shougang Co. and
the enterprises it controls, the company will not require or accept the
more favorable conditions provided by Shougang Co. than the
conditions to an independent third party in any fair market transaction.
The company and other enterprises under the control of the company
will sign a standardized related party transaction agreement with
27
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Shougang Co. in accordance with the law, follow the market principles
of openness, fairness and justice, in accordance with fair and
reasonable market price, conform to relevant provisions of laws,
regulations and normative documents in the decision-making
procedures of related transactions and disclose information in
accordance with the law.
2. The company and other enterprises controlled by the company will
not obtain any improper benefits or make Shougang Co. bear any
improper obligations through related party transactions with Shougang
Co. or the enterprises controlled by Shougang Co.
3. The company will be liable for the losses to Shougang Co. and the
enterprise controlled by Shougang Co. due to the related party
transactions with them in violation of the above commitments.
In respect of the purchase of 51% equity of Jingtang Co. by Shougang
Co., Shougang Group made the following commitments in urging
Jingtang Co. and its holding subsidiary, Tangshan Shougang Jingtang
Caofeidian Port Co., Ltd. (hereinafter referred to as Port Co.) to
complete relevant matters:
Shougang 1. The company promises to urge Jingtang Co. not to actually carry Refer to
Group Co., out port operation business of general bulk cargo berth project 29 Sep. 2015 contents of Implementing
Ltd. (552-meter shoreline wharf project) without obtaining formal or commitment
temporary port operation license.
2. The company promises to urge Port Co. not to actually carry out
port operation business of general wharf project (1600-meter shoreline
wharf project) without obtaining formal or temporary port operation
license.
In respect of the purchase of 51% of the equity of Jingtang Co. by
Shougang Co., Shougang Group made the following commitments in
urging Jingtang Co. and its holding subsidiary, Tangshan Shougang
Jingtang Caofeidian Port Co., Ltd. (hereinafter referred to as Port
Company) to complete relevant matters:
1. Shougang Group promises to urge Jingtang Co. to complete the
Shougang Refer to
overall acceptance procedures of supporting wharf project
Group Co., 23 Dec. 2022 contents of Implementing
(1240-meter shoreline wharf project) and obtain the formal port
Ltd. commitment
operation license before 31 December 2022, and carry out port
operation business in accordance with the requirements of relevant
competent departments.
2. Shougang Group promises to urge Jingtang Co. to complete the
application of ownership certificate of all self-built houses of Jingtang
Co. before 31 December 2022.
In respect of the purchase of 51% of the equity of Jingtang Co. by
Shougang Co., the company made the following commitments in
urging Jingtang Co. and its holding subsidiary, Port Company, to
complete the relevant matters of obtaining land use right certificate:
Shougang
The company promises to urge Jingtang Co. to obtain state-owned
Group Co., 21 May 2021 31 Dec. 2023 Implementing
land use right certificate of all the land used before 31 December
Ltd.
2023, including but not limited to the land used by Jingtang Co. Phase
I project, Jingtang Co. supporting wharf project (1240-meter shoreline
wharf project), general bulk cargo berth project (552-meter shoreline
wharf project) and Jingtang Co. Phase II project.
The shares of the listed company acquired by the Fund as a result of
Beijing Jing the purchase of assets through the issuance of shares shall not be
Guorui Soe transferred within 36 months from the date of the completion of the
Reform and issuance of shares. If such shares are increased due to the listed 21 May. 2021 20 May. 2024 Implementing
Development company's granting of bonus shares, conversion of capital stock and
Fund(L.P.) other reasons, the additional shares of the listed company shall be
locked in accordance with the above lockup period.
1. The shares of the listed company acquired by the company in this
transaction shall not be transferred within 36 months from the date
when the shares are issued. However, transfers permitted by applicable
law are not subject to this restriction. Within six months after
completion of the transaction, if the closing price of the shares of the
listed company for 20 consecutive trading days is lower than the
issuing price of the shares, or the closing price at the end of six
months after the completion of this transaction is lower than the issue
price of this share, the locking period of shares obtained by the
Shougang company through this transaction will be automatically extended for
Group Co., six months on the basis of the above locking period. If such shares are 20 Dec.2021 19 Apr. 2025 Implementing
Ltd. increased due to the listed company's granting of bonus shares,
conversion of capital stock and other reasons, the additional shares of
the listed company shall be locked in accordance with the above
lockup period.
2. If the aforementioned commitment to lock up shares is inconsistent
with the latest regulatory opinions of the securities regulatory
authority, the company shall adjust the aforementioned commitment
according to the regulatory opinions of the relevant securities
regulatory authority.
The Asset Appraisal Report evaluates partial of intellectual property
rights of Jingtang Co. and Shanxi Coking Co., Ltd. (hereinafter
referred to as "performance commitment assets") based on future
earnings expectations. The appraisal value of 1,346 patent rights, 190 Implementing.
Shougang
proprietary technologies, 32 software copyrights and other assets of
Group Co., 20 Dec.2021 31 Dec. 2024 The commitments for
Jingtang Co. is RMB 242.8 million, and the appraisal value of 57
Ltd. 2022 have been fulfilled
patent rights assets of Shanxi Coking Co., Ltd. is RMB 40 million.
In accordance with the forecast income sharing of the performance
committed assets, if the purchase of assets by issuing shares is
completed before 31 December 2022, Shougang Group commitments
28
Beijing Shougang Co. Ltd Semi-Annual Report 2023
that, in 2022, 2023 and 2024, the total income sharing of performance
commitment assets in the current period shall be no less than RMB
90.9182 million, RMB 79.414 million and RMB 61.5618 million
respectively.
If the above performance commitments are not met, please refer to
"Performance Commitments and Impairment Compensation
Arrangements" in Beijing Shougang Co., Ltd. 's Report on Issuing
Shares to Purchase Assets and Raising Supporting Funds and Related
Party Transactions issued by the Company for detailed compensation
methods and arrangements.
Completed on time Yes
If the commitment is
overdue and not
completed, it shall
specify the specific
Not applicable
reasons for the failure to
complete the
performance and the next
step of the work plan
II. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party during the reporting period.
III. External guarantees against the rules and regulations
□ Applicable √ Not applicable
No external guarantee provided by the Company which against the rules and regulations during the reporting period.
IV. Engagement and disengagement of CPAs firm
Whether the semi-annual financial report has been audited
□ Yes √ No
The semi-annual financial report of the Company has not been audited.
V. Notes for “non-standard audit report” of CPAs firm during the Reporting Period by board
of directors and supervisory board
□ Applicable √ Not applicable
VI. Notes for the related information of “non-standard audit reports” last year by board of
directors
□ Applicable √ Not applicable
VII. Insolvency or restructuring related matters
□ Applicable √ Not applicable
No insolvency or restructuring related matters during the reporting period
VIII. Litigation or arbitration
Material litigation or arbitration cases
□ Applicable √ Not applicable
No material litigation or arbitration cases during the reporting period.
Other litigation or arbitration cases
□ Applicable √ Not applicable
IX. Punishment or rectification
□ Applicable √ Not applicable
X. Integrity of the Company and its controlling shareholders and actual controllers during
the reporting period
□ Applicable √ Not applicable
XI. Material related party transactions
1. Related transaction with routine operation concerned
√ Applicable □ Not applicable
Available
Related Approved Whether it Related
Pricing Proportion market
Related Transaction Transaction Transaction transaction transaction exceeds the transaction Date of
Relationship principle of in similar prices for Disclosure index
parties type content price price quota approved settlement disclosure
transaction transactions similar
(RMB’0,000) (RMB’0,000) quota(Y/N) methods
transactions
"China Securities
Raw fuel,
Shougang Journal" ,"Securities
power Cash at
Group and Parent Related Market Market 7 December Times" ,"Shanghai Securities
energy, Market price 2,251,793 4,758,480 N bank and
its company purchase price price 2022 News", Juchao Information
production on hand
subsidiaries Network
services, etc
(http://www.cninfo.com.cn)
Shougang Steel, solid Cash at
Parent Related Market Market 7 December
Group and waste, Market price 129,125 375,508 N bank and Ditto
company sales price price 2022
its power on hand
29
Beijing Shougang Co. Ltd Semi-Annual Report 2023
subsidiaries energy, etc
Raw fuel,
Other Joint venture power Cash at
Related Market Market 7 December
related and energy, Market price 1,287,623 2,978,818 N bank and Ditto
purchase price price 2022
parties associates production on hand
services, etc
Other Joint venture Cash at
Related Steel, power Market Market 7 December
related and Market price 191,831 393,643 N bank and Ditto
sales energy, etc price price 2022
parties associates on hand
Total -- -- 3,860,372 -- 8,506,449 -- -- -- -- --
Details of large sales returns No
The Company's daily related transactions are expected to occur in accordance with the total amount, after deliberation and approval by the 15th Board of
The Company classifies the daily related transactions
Directors of the seventh session of the Company on December 6, 2022, and submitted to the fourth extraordinary shareholders' meeting of the Company in 2022
by category and estimates the transaction amount that
for deliberation and approval on December 23, 2022. The total amount of transactions approved by the shareholders' meeting was 85,064.49 million yuan, and
will take place in the current period, and discloses the
RMB 38,603.72 million yuan occurred in the current period, which did not exceed the approved limit. For details about related parties and related transactions,
actual transaction amount (if any)
see Section X, Item 12.
The reason for the material difference between the
transaction price and the market reference price (if Not Applicable
applicable)
2. Related party transactions by assets or equity acquisition and sold
□ Applicable √ Not applicable
No related party transactions by assets or equity acquisition and sold during the reporting period.
3. Related transactions of mutual investment outside
□ Applicable √ Not applicable
No related party transactions in respect of jointly investment during the reporting period.
4. Related creditor's rights and debts
√ Applicable □ Not applicable
Whether the Company had non-operating contact of related credit and debt
□ Applicable √ Not applicable
No related creditor's rights and debts during the reporting period
5. Transactions with related financial companies
√ Applicable □ Not applicable
Deposit
Current amount
Relationship Maximum daily Closing
Range of deposit Opening balance balance
Related party with the deposit limit Total deposit amount Total withdrawal
(RMB’0,000)
interest rate (RMB’0,000)
Company of current period amount of current (RMB’0,000)
(RMB’0,000) period (RMB’0,000)
Under the
Shougang
control of the
Group Finance 1,600,000 1.49%-1.9% 878,266.33 7,606,367.47 7,747,785.77 736,848.02
same ultimate
Co., Ltd.
controlling party
Loan
Current amount
Relationship Closing
Amount Loan interest Opening balance
Related party with the balance
(RMB’0,000) rate range (RMB’0,000) Total loan amount of Total repayment
Company current period amount of current (RMB’0,000)
(RMB’0,000) period (RMB’0,000)
Under the
Shougang
control of the
Group Finance 3,200,000 2.35%-3.85% 1,801,689.43 1,071,469.51 1,334,419.75 1,538,739.18
same ultimate
Co., Ltd.
controlling party
Credit granting or other financial services
Related party Relationship with the Company Business types Total amount(RMB’0,000) Actual amount(RMB’0,000)
Shougang Group Finance Co., Under the control of the same
Credit 3,200,000 1,538,739.18
Ltd. ultimate controlling party
6. Transactions between financial companies controlled by the company and related parties
□ Applicable √ Not applicable
7. Other significant related party transactions
□ Applicable √ Not applicable
No other significant related party transaction of the Company during the reporting period.
30
Beijing Shougang Co. Ltd Semi-Annual Report 2023
XII. Material contracts and implementation
1. Entrustment, contract and leasing
(1) Entrustment
□ Applicable √ Not applicable
No entrustment during the reporting period.
(2) Contract
□ Applicable √ Not applicable
No contract during the reporting period.
(3) Leasing
□ Applicable √ Not applicable
No leasing during the reporting period.
2. Material guarantees
√ Applicable □ Not applicable
Unit: RMB0,000
External guarantees of the Company and its subsidiaries (excluding guarantees to subsidiaries)
Date of the
related Guarantee to
Name of announcement Amount of Guarantee Guarantee Type of Collateral (if Counterguarantee Fulfilled or related
Term
obligee disclosing the guarantee date provided guarantee any) (if any) not parties or
guarantee not
amount
Shougang
Guarantee of
(Qingdao) 20
joint and
Steel 10 June 2023 21,000 September 21,000 One year No Yes
several
Industry Co., 2022
liability
Ltd.
Ningbo Guarantee of
29
Shougang joint and
10 June 2023 4,400 August 4,400 One year No Yes
Zhejin Steel several
2022
Co., Ltd. liability
Total external guarantees Total amount of actual
approved during the 25,400 external guarantees during 25,400
reporting period the reporting period
Total external guarantees Total balance of actual
approved at the end of the 25,400 external guarantee as at the 25,400
reporting period end of the reporting period
Guarantees between the Company and its subsidiaries
Date of the
related Guarantee to
Name of announcement Amount of Guarantee Guarantee Type of Collateral (if Counterguarantee Fulfilled or related
Term
obligee disclosing the guarantee date provided guarantee any) (if any) not parties or
guarantee not
amount
Shanghai
Guarantee of
Shougang
17 January joint and
Steel & Iron 10 June 2023 16,050 16,050 One year No Yes
2023 several
Trading Co.,
liability
Ltd.
Total amount of guarantee
Total amount of guarantee
provided for subsidiaries
16,050 provided for subsidiaries 16,050
approved during the
during the reporting period
reporting period
Total amount of guarantee Total balance of guarantee
provided for subsidiaries provided for subsidiaries
16,050 16,050
approved as at the end of the as at the end of the
reporting period reporting period
Guarantees between subsidiaries (i.e. the sum of the above two items)
Total amount of guarantee Total amount of actual
approved during the 41,450 guarantee during the 41,450
reporting period reporting period
Total amount of guarantee Total balance of actual
approved as at the end of the 41,450 guarantee as at the end of 41,450
reporting period the reporting period
The percentage of total amount of guarantee provided to
0.84%
the net assets of the Company
Including:
Balance of guarantees provided to shareholders, actual
controllers, and their related parties
Debt guarantee balance provided directly or indirectly for
guaranteed objects with an asset liability ratio exceeding 41,450
70%
31
Beijing Shougang Co. Ltd Semi-Annual Report 2023
The amount of the total guarantee amount exceeding
0
50% of net assets
The total amount of the above three guarantees 41,450
Explanation of situations where there is a guarantee
liability or evidence indicating the possibility of
assuming joint and several liability for the unexpired
guarantee contract during the reporting period (if any)
Explanation of providing external guarantees in violation
of prescribed procedures (if any)
3. Entrusted financing
□ Applicable √ Not applicable
No entrusted financing during the reporting period.
4. Other material contracts
□ Applicable √ Not applicable
No other material contract during the reporting period.
XIII. Explanation of other significant matters
□ Applicable √ Not applicable
No other significant matters that need to be explained during the reporting period.
XIV. Significant matters of subsidiaries of the Company
√ Applicable □ Not applicable
1. In December 2022, the Company signed the Capital Increase Agreement on Shougang Zhixin Qian 'an Electromagnetic Materials
Co., Ltd. with Zhixin Co., original shareholders of Zhixin Co. and all investors who participated in the capital increase, and all
investors who participated in the capital increase jointly invested 2 billion yuan to become strategic investors of Zhixin Co. On
January 28, 2023, Zhixin Co. completed the registration procedures for industrial and commercial changes of this capital increase,
and obtained a new business license, and the Company's holding of Zhixin Co. shares changed to 68.0293%.
2. According to the resolution of the first interim meeting of the Board of Directors of Shougang in 2023, the holding subsidiary of
the company, Beijing Shougang New Energy Automotive Material Technology Co., Ltd. (hereinafter referred to as "Beijing New
Energy"), will be separated. After the completion of the separation, Beijing New Energy as a surviving company, its shareholders
changed to Shougang Group Co., Ltd and Qian 'an Beijing-Ji Equity Investment Fund (limited partnership), and a new Beijing
Shougang New Energy Materials Technology Co., Ltd. (hereinafter referred to as "New Energy Materials") was established, whose
shareholders are Shougang shares and Beijing Shouxin Jinyuan Management Consulting Center (limited partnership). As of April 25,
2023, the registration procedures for the industrial and commercial change of the existing division have been completed, and Beijing
New Energy and New energy materials have obtained their respective business licenses.
32
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Section VII. Movements in share capital and shareholders
I. Share movement
1. Share movement
Unit: share
Before change Increase (/decrease) during the year After change
Converted
New shares Bonus
Amount Ratio from Others Subtotal Amount Ratio
issued issue
reserves
I. Restricted shares 1,806,563,829 23.10% 1,806,563,829 23.10%
1. State ownership
2. State-owned
1,741,662,029 22.27% 1,741,662,029 22.27%
corporation shares
3. Shares held by
other domestic 64,901,800 0.83% 64,901,800 0.83%
investors
Of which:
Shares held by
domestic legal
persons
Shares held
by domestic natural 64,901,800 0.83% 64,901,800 0.83%
persons
4.Foreign
ownership
Of which:
Shares held by
overseas legal
persons
Shares held
by overseas natural
persons
II. Non-restricted
6,013,305,341 76.90% 6,013,305,341 76.90%
shares
1. RMB ordinary
6,013,305,341 76.90% 6,013,305,341 76.90%
shares
2. Domestic listed
foreign shares
3. Overseas listed
foreign shares
4.Others
III. Total number of
7,819,869,170 100.00% 7,819,869,170 100.00%
shares
Reasons of shares movements
□ Applicable √ Not applicable
Approval of share movements
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Progress of the implementation of share repurchase
□ Applicable √ Not applicable
Progress of the implementation of reducing and repurchasing shares by means of centralized bidding
□ Applicable √ Not applicable
Influences of shares movements on basic EPS, diluted EPS, net assets per share attributable to common shareholders of the company
and other financial indicators for both the latest year and the latest period
□ Applicable √ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Movements of restricted shares
√ Applicable □ Not applicable
33
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Unit: share
Restricted
Restricted Restricted
shares Restricted
Name of shares at the shares increased Date of release
released shares at the Reason for restriction
shareholders beginning of during the from restriction
during the end of period
period period
period
Reasons for restricted sales of
232,286,354 shares:
The commitment made by Shougang
Group when the Company was first
restructured. For details, please refer to
the company's announcements in "China The restriction can
Securities Journal" "Securities Times" be lifted after the
Shougang Group
1,247,703,723 0 0 1,247,703,723 "Shanghai Securities News", CNINFO performance of the
Co., Ltd.
(http://www.cninfo.com.cn)on 28 commitment;
September 2019. 19 April 2025
Reasons for restricted sales of other
shares:
Share lock up commitment made as the
counterparty to the company's issuance
of shares to purchase assets.
For details, please refer to the relevant
Beijing Jing
announcement issued by the Company on
Guorui Soe
20 May 2021.
Reform and 493,958,306 0 0 493,958,306 20 May 2024
Share lock up commitment made as the
Development
counterparty to the company's issuance
Fund(L.P.)
of shares to purchase assets.
Due to the fact that
the Company's
performance
assessment
indicators for 2022
do not meet the
company-level
performance
assessment
conditions of the
conditions for
lifting the
restriction during
Shougang In accordance with relevant regulations,
the first lifting
Directors, senior the Company's 2021 restricted stock
period, all restricted
executives and incentive plan will arrange the lock-up
shares shall not be
other equity 64,901,800 0 0 64,901,800 period of the restricted stock grants.
lifted during the
incentive objects For details, please refer to the relevant
first lifting period,
(386 persons in announcement issued by the Company on
and the Company
total) 13 November 2021.
will carry out
buyback
cancellation. The
subsequent two
release periods (i.e.
36 months and 48
months from the
date of completion
of grant
registration) are
scheduled in
accordance with the
incentive plan.
Total 1,806,563,829 0 0 1,806,563,829 -- --
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders and shareholding
Unit: Share
Total preference
shareholders with voting
Total common stock
rights recovered at end
shareholders in 98,345 0
of reporting period (if
reporting period-end
applicable) (found in
note 8)
Shareholders holding above 5% or top 10 shareholders
34
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Total Shares pledged or
Amount of Amount of
Nature of shareholders at Changes in frozen
Name of shareholder Shareholding the end of report report period restricted unrestricted
shareholder
ratio (%) shares held shares held Status Amount
period
State-owned
Shougang Group 56.53 4,420,769,800 1,247,703,723 3,173,066,077
corporation
State-owned
Baowu Group 10.15 793,408,440 793,408,440
corporation
Beijing Jingtou Investment
9.48 740,940,679 740,940,679
Holding Co., Ltd.
Beijing Jing Guorui Soe
Reform and Development 6.32 493,958,306 493,958,306 0
Fund(L.P.)
Sunshine Life Insurance Co.,
Ltd. - Traditional insurance 0.98 76,692,529 76,692,529
products
National Social Security Fund
0.86 67,547,683 67,547,683
- Eight combinations
Sunshine Life Insurance Co.,
Ltd. - Dividend insurance 0.72 56,159,243 56,159,243
products
Liu Wei 0.71 55,500,000 55,500,000
Beijing Yizhen Technology
0.61 47,580,500 47,580,500
Development Co., Ltd.
Hong Kong Securities
0.52 40,643,754 40,643,754
Clearing Company Limited
Strategic investor or general legal person
becoming a top-10 ordinary shareholder due Not applicable
to rights issue (if any) (reference to note 3)
Shougang Group holds 0.68% of Baosteel Co., Baowu Group Co., Ltd. and its persons acting in
Related or acting-in-concert parties among the concert hold 62.30%of Baosteel Co. In addition, Shougang Group has no relationship or concerted
shareholders above acting relationship with other top 10 shareholders; The relationship between other shareholders or the
relationship of cooperators is unknown.
Above shareholders involved in entrusting /
being entrusted with voting rights and giving Not applicable
up voting rights
Special account for share repurchases (if any)
among the top 10 shareholders(reference to Not applicable
note 11)
Shareholding of the top 10 shareholders unrestricted shares held
Type of shares
Name of shareholders Amount of unrestricted shares held at period-end
Type Amount
Shougang Group 3,173,066,077
Baowu Group 793,408,440
Beijing Jingtou Investment Holding Co., Ltd. 740,940,679
Sunshine Life Insurance Co., Ltd.- Traditional
76,692,529
insurance products
National Social Security Fund - eight
67,547,683
combinations
Sunshine Life Insurance Co., Ltd. - Dividend
56,159,243
insurance products
Liu Wei 55,500,000
Beijing Yizhen Technology Development Co.,
47,580,500
Ltd.
Hong Kong Securities Clearing Company
40,643,754
Limited
Shanxi Coking Coal Group Finance Co., Ltd. 32,155,928
Connected associated relationship or acting in
concert among the top 10 shareholders Shougang Group holds 0.68% of Baosteel Co., Baowu Group Co., Ltd. and its persons acting in
holding tradable shares without selling concert hold 62.30%of Baosteel Co. In addition, Shougang Group has no relationship or concerted
restrictions, and between the top 10 acting relationship with other top 10 shareholders; The relationship between other shareholders or the
shareholders holding tradable shares without relationship of cooperators is unknown.
selling restrictions and the top 10 shareholders
35
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Top 10 ordinary shareholders involved in
securities margin trading (if any) (reference Not applicable
to note 4)
Whether top ten common stock shareholders or top ten common stock shareholders with unrestricted shares have a buy-back
agreement dealing during the reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with unrestricted shares of the Company have no
buy-back agreement dealing during the reporting period.
IV. Changes in the shareholding of directors, supervisors and senior management
□ Applicable √ Not applicable
There was no change in the shareholding status of the company's directors, supervisors and senior management during the reporting
period, as detailed in the 2022 annual report.
V. Change of controlling shareholder or actual controller
Change of controlling shareholder in reporting period
□ Applicable √ Not applicable
The controlling shareholder of the company has not changed during the reporting period.
Actual controller changes during reporting period
□ Applicable √ Not applicable
The actual controller of the company has not changed during the reporting period.
36
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Section VIII. Preferred Shares
□ Applicable √ Not applicable
No preferred shares issued by the Company during the reporting period.
37
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Section IX. Bonds
√ Applicable □ Not applicable
Ⅰ. Enterprise bonds
□ Applicable √ Not applicable
The Company had no enterprise bonds during the reporting period.
II. Corporate Bonds
√ Applicable □ Not applicable
1. Basic information on Corporate Bonds
Unit: RMB 0’000
Outstanding
Bond Interest Trading
Name of bond Bond code Issue date Value date Maturity date amount of the Payment method
abbreviation rate venue
bonds
Interest is
calculated on an
annual basis, not
Beijing
compound. The
Shougang Co.,
interest is paid once
Ltd.2020 Public
a year, and the Shenzhen
Offering of 20 Shouqian
149236 15 Sep. 2020 17 Sep. 2020 17 Sep. 2025 250,000.00 3.98% principal is repaid Stock
corporate bonds 01
once it is due. The Exchange
to Professional
last installment of
Investors (Phase
interest is paid
I)
together with the
repayment of the
principal.
Investor eligibility arrangement (if any) Public offering for professional investors
Applicable trading mechanism Bidding, quotation, inquiry and agreement trading methods
Whether there are delisting risks (if any)
No
and counter-measures
Overdue and outstanding bonds
□ Applicable √ Not applicable
2. Triggering and execution of issuer’s or investor’s option clause or investor protection clause
√ Applicable □ Not applicable
The bond (20 Shouqian 01) has a five-year maturity with an issuer option to adjust the coupon rate at the end of the third year and an
investor recall option. It has not yet reached the exercise period.
3. Adjustment of credit rating results during the reporting period
□ Applicable √ Not applicable
4. Implementation of and changes in guarantee, debt repayment plan and other repayment guarantee measures during the
reporting period and their impacts on the rights and interests of bond investors
□ Applicable √ Not applicable
III. Non-financial corporate debt financing instruments
√ Applicable □ Not applicable
1.Basic information of non-financial corporate debt financing instruments
Unit: RMB 0’000
Outstanding
Value Maturity Interest Payment Trading
Name of bond Bond abbreviation Bond code Issue date amount of the
date date rate method venue
bonds
Beijing Shougang
Repayment National
Co., Ltd.2023
23Shouganggufen 14 April 17 April 20 October of principal inter-bank
Ultra-short-term 012381548 100,000.00 2.37%
SCP001 2023 2023 2023 and interest bond
financing note
once due market
(Phase I)
Institutional investors in the national inter-bank bond market (except purchasers prohibited
Investor eligibility arrangement (if any)
by national laws and regulations)
Applicable trading mechanism Non-financial enterprise debt financing instrument trading system
Whether there are delisting risks (if any) and
No
countermeasures
Overdue and outstanding bonds
38
Beijing Shougang Co. Ltd Semi-Annual Report 2023
□ Applicable √ Not applicable
2. Triggering and execution of issuer’s or investor’s option clause or investor protection clause
□ Applicable √ Not applicable
3. Adjustment of credit rating results during the reporting period
□ Applicable √ Not applicable
4. Implementation of and changes in guarantee, debt repayment plan and other repayment guarantee measures during the
reporting period and their impacts on the rights and interests of bond investors
□ Applicable √ Not applicable
IV. Convertible bonds
□ Applicable √ Not applicable
The Company has no convertible bonds during the reporting period.
V. The loss in the scope of the consolidated financial statements during the reporting
periodexceeding 10% of the net assets as at the end of the prior year
□ Applicable √ Not applicable
VI. Major accounting data and financial indicators of the Company over the past two years as
at the end of the reporting period
Unit: RMB0’000
Increase/decrease as at the end
As at the end of the reporting of the reporting period as
Items As at the end of the prior year
period compared to the end of the prior
year
Current ratio 0.49 0.45 8.89%
Gearing ratio 62.72% 65.03% -2.31%
Quick ratio 0.32 0.3 6.67%
Increase/decrease of the
The corresponding period of the reporting period as compared to
The reporting period
prior year corresponding period of the
prior year
Net profit after extraordinary
38,507.8 175,267.38 -78.03%
gains or losses
Proportion of EBITDA to total
5.96% 7.36% -1.40%
debts
Interest coverage ratio 1.71 3.48 -50.86%
Cash interest coverage ratio 1.22 4.24 -71.23%
EBITDA interest coverage ratio 6.68 7.48 -10.70%
Loans payment ratio 100.00% 100.00% 0.00%
Interest payment ratio 100.00% 100.00% 0.00%
39
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Section X. Financial Report
I. Audit report
Has the semi-annual report been audited?
□ Yes √No
The Company's semi-annual financial report has not been audited.
II. Financial statement
The unit of the financial statements in the financial notes is: RMB yuan.
Consolidated and Parent Company Statement of Financial Position
Beijing Shougang Co., Ltd. as at 30 June 2023
Unit: RMB Yuan
30 June 2023 31 December 2022
Item Notes
Consolidated Company Consolidated Company
Current assets:
Cash and Cash equivalents V. 1 7,498,105,524.69 1,571,549,526.78 9,470,472,522.05 1,973,471,254.47
Notes receivable V. 2 5,185,604,148.01 857,624,790.52 6,691,086,020.85 898,640,149.83
Accounts receivable V. 3 1,561,766,163.98 1,705,831,150.96 1,450,008,897.10 1,396,660,925.53
Financing receivables V. 4 6,325,120,221.92 1,815,794,055.75 3,489,134,871.56 835,526,685.55
Prepayments V. 5 1,869,313,064.06 446,306,027.66 636,469,216.98 326,340,746.62
Other receivables V. 6 15,739,741.91 1,174,163,351.39 13,168,697.56 1,163,994,995.68
Including: Interest receivable
Dividends receivable 200,000.00 200,000.00 9,713,244.06
Inventories V. 7 12,216,145,045.92 1,700,913,629.27 11,960,246,748.15 1,904,197,806.47
Other current assets V. 8 764,033,804.92 463,658,893.96 1,025,942,949.49 565,959,166.92
Total current assets 35,435,827,715.41 9,735,841,426.29 34,736,529,923.74 9,064,791,731.07
Non-current assets:
Long-term equity investments V. 9 2,566,256,714.59 37,575,948,825.12 2,724,285,925.35 37,687,890,460.88
Other equity instruments investments V. 10 509,359,837.55 509,359,837.55 232,766,133.81 232,766,133.81
Other non-current financial assets V. 11 79,234,007.60 79,234,007.60 79,234,007.60 79,234,007.60
Investment properties
Fixed assets V. 12 90,739,924,821.37 18,692,108,948.71 93,331,072,969.17 19,254,378,866.41
Construction in progress V. 13 5,710,993,798.69 1,744,349,537.15 7,673,649,852.77 1,490,601,326.57
Right-of-use assets V. 14 74,922,597.56 22,512,036.92 83,107,359.45 27,014,444.30
Intangible assets V. 15 6,097,009,376.18 1,681,798,822.29 3,906,907,128.11 1,702,786,981.19
Development expenditures
Goodwill
Long-term prepaid expenses V. 16 3,718,028.18 3,535,748.04
Deferred tax assets V. 17 379,679,792.68 203,566,412.45 402,355,955.31 205,022,924.46
Other non-current assets
Total non-current assets 106,161,098,974.40 60,508,878,427.79 108,436,915,079.61 60,679,695,145.22
Total assets 141,596,926,689.81 70,244,719,854.08 143,173,445,003.35 69,744,486,876.29
Current liabilities:
Short-term borrowings V. 18 28,483,601,889.04 9,970,323,284.20 29,580,006,103.39 10,586,336,291.69
Notes payable V. 19 4,340,700,000.00 482,900,000.00 7,261,510,000.00 989,500,000.00
Accounts payable V. 20 21,841,975,227.62 10,040,371,537.44 19,810,594,484.05 9,833,463,235.41
Receipts in advance
Contract liabilities V. 21 5,043,291,760.66 768,556,762.97 4,508,016,725.74 521,402,199.01
40
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Payroll and employee benefits V. 22 615,825,783.26 197,517,444.05 620,796,429.60 207,863,353.07
Taxes payable V. 23 384,155,495.50 81,510,481.69 172,300,416.40 22,570,197.17
Other payables V. 24 981,016,774.08 319,624,614.14 2,761,819,276.69 1,100,551,048.35
Including: Interest payable
Dividend payable 11,440,046.38
Liabilities classified as held for sale
Current portion of non-current liabilities V. 25 4,662,647,767.10 3,945,256,557.52 4,038,768,022.60 3,419,903,869.77
Other current liabilities V. 26 6,221,185,107.68 1,981,769,230.88 8,088,749,910.74 1,927,653,981.82
Total current liabilities 72,574,399,804.94 27,787,829,912.89 76,842,561,369.21 28,609,244,176.29
Non-current liabilities:
Long-term borrowings V. 27 10,914,950,000.00 1,987,720,000.00 10,594,350,000.00 1,267,120,000.00
Bonds payable V. 28
Lease liabilities V. 29 63,956,202.06 14,649,576.83 72,439,836.79 19,284,063.32
Long-term payable V. 30 2,300,000.00 2,300,000.00 2,300,000.00 2,300,000.00
Long-term payroll and employee benefits V. 31 80,255,894.60 80,255,894.60 82,565,651.02 82,565,651.02
Provisions
Deferred income V. 32 467,972,852.62 82,841,384.92 472,861,881.90 85,269,577.62
Deferred tax liabilities V. 17 546,572,519.43 398,089,302.53 502,268,362.26 365,393,047.63
Other non-current liabilities V. 33 4,164,819,920.40 4,532,018,467.20
Total non-current liabilities 16,240,827,389.11 2,565,856,158.88 16,258,804,199.17 1,821,932,339.59
Total liabilities 88,815,227,194.05 30,353,686,071.77 93,101,365,568.38 30,431,176,515.88
Shareholders’equity：
Share capital V. 34 7,819,869,170.00 7,819,869,170.00 7,819,869,170.00 7,819,869,170.00
Capital reserve V. 35 30,149,085,572.33 22,200,783,194.58 29,644,048,551.50 22,176,353,536.77
Less: treasury shares V. 36 210,930,850.00 210,930,850.00 210,930,850.00 210,930,850.00
Other comprehensive income V. 37 393,356,423.11 393,356,423.11 158,251,774.94 158,251,774.94
Special reserve V. 38 39,898,757.98 2,255,199.14 31,852,310.79
Surplus reserve V. 39 1,908,883,208.67 1,908,883,208.67 1,908,883,208.67 1,908,883,208.67
Retained earnings V. 40 9,006,056,094.41 7,776,817,436.81 8,595,698,699.52 7,460,883,520.03
Equity attributable to shareholders of the Company 49,106,218,376.50 39,891,033,782.31 47,947,672,865.42 39,313,310,360.41
Non-controlling interests 3,675,481,119.26 2,124,406,569.55
Total shareholders' equity 52,781,699,495.76 39,891,033,782.31 50,072,079,434.97 39,313,310,360.41
Total liabilities and shareholders' equity 141,596,926,689.81 70,244,719,854.08 143,173,445,003.35 69,744,486,876.29
41
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Consolidated and Parent Company Income Statement
Beijing Shougang Co., Ltd. for the year ended 30 June 2023
Unit: RMB Yuan
Item Amount of the current period Amount of the prior period
Notes
Consolidated Company Consolidated Company
I. Operating revenue V. 41 57,368,096,029.37 19,873,152,144.53 63,194,115,447.56 21,084,411,087.65
Less: Cost of sales V. 41 54,320,153,167.23 19,017,870,812.88 58,297,262,097.99 20,322,512,831.66
Taxes and surcharges V. 42 383,925,331.08 86,621,033.52 456,719,481.10 116,182,277.23
Selling expenses V. 43 108,676,549.88 62,830,702.50 110,681,490.14 71,598,311.64
General and administrative expenses V. 44 579,477,011.71 231,356,983.91 589,064,385.23 244,437,111.75
R&D expenses V. 45 196,136,003.69 53,338,549.19 328,517,365.88 111,510,633.39
Financial expenses V. 46 770,889,994.30 239,745,298.74 894,145,156.20 242,528,674.14
Including: Interest expense 792,670,794.80 246,351,625.84 952,442,895.30 261,192,881.28
Interest income 54,953,200.51 8,762,865.98 59,554,515.51 10,954,720.09
Add: Other income V. 47 28,554,859.98 5,239,871.25 20,821,000.27 6,768,885.19
Investment income/ (loss) V. 48 -147,517,069.99 214,093,601.73 -20,652,118.80 204,417,656.82
Including: Share of profits or loss of associates and joint ventures -161,991,793.90 -126,412,070.01 -28,953,471.03 -18,896,580.08
Gain/ (loss) on the changes in fair value V. 49
Credit impairment losses V. 50 6,485,743.85 8,123,531.49 7,605,686.77 -2,331,366.56
Assets impairment losses V. 51 -329,243,536.55 -98,534,797.49 -105,263,662.32 -13,433,886.77
Gain/ (loss) from disposal of assets V. 52 169,700.65 169,700.65 -200,808.44 -631,771.10
II. Operating profit/ (loss) 567,287,669.42 310,480,671.42 2,420,035,568.50 170,430,765.42
Add: Non-operating income V. 53 3,781,142.35 1,090,746.71 2,243,343.70 820,332.73
Less: Non-operating expenses V. 54 5,028,830.28 2,973,790.01 14,787,420.23 4,914,061.55
III. Profit/ (loss) before tax 566,039,981.49 308,597,628.12 2,407,491,491.97 166,337,036.60
Less: Income tax expense V. 55 93,166,930.51 -7,336,288.66 366,144,984.98 248,547.24
IV. Net profit / (loss) 472,873,050.98 315,933,916.78 2,041,346,506.99 166,088,489.36
(1) Categorized by operation continuity:
Including: Net profit/ (loss) from continuing operations 472,873,050.98 315,933,916.78 2,041,346,506.99 166,088,489.36
Net profit/ (loss) from discontinuing operations
(2) Categorized by ownership:
Including: Net profit/ (loss) attributable to shareholders of the
410,357,394.89 1,795,307,073.34
Company
Net profit/ (loss) attributable to non-controlling interests 62,515,656.09 246,039,433.65
V. Other comprehensive income, net of tax 235,104,648.17 235,104,648.17 -14,214,734.41 -14,214,734.41
Other comprehensive income, net of tax, attributable to
235,104,648.17 235,104,648.17 -14,214,734.41 -14,214,734.41
shareholders of the company
(1) Other comprehensive income that will not be reclassified
235,104,648.17 235,104,648.17 -14,214,734.41 -14,214,734.41
to profit or loss
Changes in fair value of other equity instrument investments 235,104,648.17 235,104,648.17 -14,214,734.41 -14,214,734.41
(2) Other comprehensive income to be reclassified to profit or
loss
Other comprehensive income, net of tax, attributable to non-controlling interests
VI. Total comprehensive income 707,977,699.15 551,038,564.95 2,027,131,772.58 151,873,754.95
Total comprehensive income attributable to shareholders of the
645,462,043.06 1,781,092,338.93
company
Total comprehensive income attributable to non-controlling
62,515,656.09 246,039,433.65
interests
VII. Earnings per share
(1) Basic earnings per share 0.0548 0.2490
(2) Diluted earnings per share 0.0548 0.2490
42
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Consolidated and Parent Company Statement of Cash Flows
Beijing Shougang Co., Ltd. for the year ended 30 June 2023
Unit: RMB Yuan
Amount of the current period Amount of the prior period
Items Note
Consolidated Company Consolidated Company
I. Cash flows from operating activities
Cash receipts from the sale of goods and the rendering of services 28,962,980,003.28 9,679,107,598.01 28,616,896,674.28 8,191,770,992.14
Tax refunds received 123,551,111.37 9,607,663.70 168,408,484.31 65,355,674.44
Cash received relating to other operating activities V. 56 687,592,386.53 514,982,646.71 759,202,921.56 158,382,493.60
Sub-total of cash inflows 29,774,123,501.18 10,203,697,908.42 29,544,508,080.15 8,415,509,160.18
Cash paid for purchase of goods and services 25,895,251,722.23 9,067,851,562.92 22,742,324,109.98 6,366,773,107.57
Cash paid to and on behalf of employee 2,168,428,268.90 719,475,070.66 2,279,498,146.94 753,281,596.21
Cash paid for taxes 1,105,119,465.38 264,420,582.68 1,908,611,908.27 263,897,447.95
Cash paid relating to other operating activities V. 56 249,772,967.07 102,245,689.70 196,109,759.67 66,860,594.07
Sub-total of cash outflows 29,418,572,423.58 10,153,992,905.96 27,126,543,924.86 7,450,812,745.80
Net cash flows from operating activities 355,551,077.60 49,705,002.46 2,417,964,155.29 964,696,414.38
II. Cash flows from investing activities
Cash received from disposal of investments
Cash received from investment income 8,312,132.80 350,362,170.08 38,792,068.99 2,862,470.89
Net proceeds from disposal of property, plant and equipment, intangible
1,980,659.88 1,844,496.26 47,116,791.47
assets and other long-term assets
Cash received from disposal of subsidiaries and other business units
Cash received relating to other investing activities V. 56 55,091,892.43 8,718,636.69 59,811,342.73 10,935,336.61
Sub-total of cash inflows 65,384,685.11 360,925,303.03 145,720,203.19 13,797,807.50
Purchase of property, plant and equipment, intangible assets and other
702,577,750.33 22,552,482.40 1,280,730,705.51 105,134,696.73
non-current assets
Cash paid for investments 659,162,899.68 650,162,899.68 2,700,000.00
Net cash paid for acquisition of a subsidiary and other operating units
Cash paid relating to other investing activities
Sub-total of cash outflows 1,361,740,650.01 672,715,382.08 1,283,430,705.51 105,134,696.73
Net cash flows from investing activities -1,296,355,964.90 -311,790,079.05 -1,137,710,502.32 -91,336,889.23
III. Cash flows from financing activities
Cash received from investment 1,009,212,271.64 287,603,983.82 287,603,983.82
Including: Cash receipts from capital contributions from non-controlling
1,009,212,271.64
interests of subsidiaries
Proceeds from borrowings 18,992,121,200.88 6,277,121,200.88 20,693,851,539.41 8,390,251,539.41
Proceeds from issuing bonds 1,000,000,000.00 1,000,000,000.00
Cash receipts relating to other financing activities
Sub-total of cash inflows 21,001,333,472.52 7,277,121,200.88 20,981,455,523.23 8,677,855,523.23
Repayments for debts 20,178,290,000.00 6,685,690,000.00 22,816,523,215.18 8,671,363,215.18
Cash payments for distribution of dividends or profit and interest expenses 885,433,446.60 216,927,189.79 923,822,373.95 267,457,236.21
Including: Dividends or profits paid to non-controlling shareholders of
subsidiaries
Cash payments relating to other financing activities V. 56 310,714,771.68 5,385,080.44 157,464,577.60 52,530,543.73
Sub-total of cash outflows 21,374,438,218.28 6,908,002,270.23 23,897,810,166.73 8,991,350,995.12
Net cash flows from financing activities -373,104,745.76 369,118,930.65 -2,916,354,643.50 -313,495,471.89
IV. Effect of exchange rate changes on cash and cash equivalents
V. Net increase in cash and cash equivalents -1,313,909,633.06 107,033,854.06 -1,636,100,990.53 559,864,053.26
Add: Cash and cash equivalents as at the beginning of year 8,329,215,003.68 1,464,146,635.34 8,535,871,373.08 1,022,866,541.00
VI. Cash and cash equivalent as at the end of year 7,015,305,370.62 1,571,180,489.40 6,899,770,382.55 1,582,730,594.26
43
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Consolidated Statement of Changes in Equity
Beijing Shougang Co., Ltd. for the year ended 30 June 2023
Unit: RMB Yuan
Amount of the current period
Item Equity attributable to shareholders of the parent company
Non-controlling Total shareholders’
interests equity
Other comprehensive
Share capital Capital reserve Less: treasury shares Special reserve Surplus reserve Retained earnings
income
I. Balance at the end of
7,819,869,170.00 29,644,048,551.50 210,930,850.00 158,251,774.94 31,852,310.79 1,908,883,208.67 8,595,698,699.52 2,124,406,569.55 50,072,079,434.97
previous year
Add: Changes in accounting
policies
Corrections of prior
period errors
Business combination
under common control
Others
II. Balance at the beginning
7,819,869,170.00 29,644,048,551.50 210,930,850.00 158,251,774.94 31,852,310.79 1,908,883,208.67 8,595,698,699.52 2,124,406,569.55 50,072,079,434.97
of the year
III. Increase/(decrease)
505,037,020.83 235,104,648.17 8,046,447.19 410,357,394.89 1,551,074,549.71 2,709,620,060.79
during the period
(1)Total comprehensive
235,104,648.17 410,357,394.89 62,515,656.09 707,977,699.15
income
(2)Shareholders'
496,706,556.73 1,612,933,798.87 2,109,640,355.60
contributions and reduction
(i) Shareholders’
contributions in ordinary 477,100,023.33 1,612,933,798.87 2,090,033,822.20
share
(ii) Amount of
share-based payments 19,606,533.40 19,606,533.40
recognized in equity
(iii) Others
(3) Profit distribution -126,180,896.77 -126,180,896.77
(i) Transfer to surplus
reserve
(ii) Distribution to
-126,180,896.77 -126,180,896.77
shareholders
(iii) Others -34,120,631.40
(4) Transfer within equity
(i) Capital reserves
converted to share capital
(ii) Surplus reserves
converted to share capital
(iii) Loss made up by
surplus reserves
(iv) Other
comprehensive income
transferred to retained
earnings
(v) Others
(5) Special reserve 8,330,464.10 8,046,447.19 1,805,991.52 18,182,902.81
(i) Additions 8,330,464.10 8,046,447.19 1,805,991.52 18,182,902.81
(ii) Utilisation
(6) Others
IV. Balance at the end of the
7,819,869,170.00 30,149,085,572.33 210,930,850.00 393,356,423.11 39,898,757.98 1,908,883,208.67 9,006,056,094.41 3,675,481,119.26 52,781,699,495.76
year
44
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Consolidated Statement of Changes in Equity
Beijing Shougang Co., Ltd. for the year ended 30 June 2022
Unit: RMB Yuan
Amount of the prior period
Item Equity attributable to shareholders of the parent company
Total
Non-controlling shareholders’
interests
Less: treasury Other comprehensive equity
Share capital Capital reserve Special reserve Surplus reserve Retained earnings
shares income
I. Balance at the end of
6,750,325,410.00 24,861,776,641.72 210,930,850.00 185,566,210.59 21,054,371.78 1,908,883,208.67 8,130,868,205.38 7,348,614,099.26 48,996,157,297.40
previous year
Add: Changes in accounting
policies
Corrections of prior
period errors
Business combination
under common control
Others
II. Balance at the beginning
6,750,325,410.00 24,861,776,641.72 210,930,850.00 185,566,210.59 21,054,371.78 1,908,883,208.67 8,130,868,205.38 7,348,614,099.26 48,996,157,297.40
of the year
III. Increase/(decrease)
1,069,543,760.00 4,799,342,378.64 -14,214,734.41 7,679,916.40 1,761,186,441.94 -5,350,288,538.65 2,273,249,223.92
during the period
(1)Total comprehensive
-14,214,734.41 1,795,307,073.34 246,039,433.65 2,027,131,772.58
income
(2)Shareholders'
1,069,543,760.00 4,791,525,313.14 -5,601,857,595.00 259,211,478.14
contributions and reduction
(i) Shareholders’
contributions in ordinary 1,069,543,760.00 4,755,696,587.97 -5,601,857,595.00 223,382,752.97
share
(ii) Amount of
share-based payments 35,828,725.17 35,828,725.17
recognized in equity
(iii) Others
(3) Profit distribution -34,120,631.40 -34,120,631.40
(i) Transfer to surplus
reserve
(ii) Distribution to
shareholders
(iii) Others -34,120,631.40 -34,120,631.40
(4) Transfer within equity
(i) Capital reserves
converted to share capital
(ii) Surplus reserves
converted to share capital
(iii) Loss made up by
surplus reserves
(iv) Other
comprehensive income
transferred to retained
earnings
(v) Others
(5) Special reserve 7,817,065.50 7,679,916.40 5,529,622.70 21,026,604.60
(i) Additions 7,817,065.50 7,679,916.40 5,529,622.70 21,026,604.60
(ii) Utilisation
(6) Others
IV. Balance at the end of the
7,819,869,170.00 29,661,119,020.36 210,930,850.00 171,351,476.18 28,734,288.18 1,908,883,208.67 9,892,054,647.32 1,998,325,560.61 51,269,406,521.32
year
45
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Parent Company Statement of Changes in Shareholders’ Equity
Beijing Shougang Co., Ltd. for the year ended 30 June 2023
Unit: RMB Yuan
Amount of the current period
Item
Total
Less: treasury Other comprehensive shareholders’
Share capital Capital reserve Special reserve Surplus reserve Retained earnings
shares income
equity
I. Balance at the end of previous year 7,819,869,170.00 22,176,353,536.77 210,930,850.00 158,251,774.94 1,908,883,208.67 7,460,883,520.03 39,313,310,360.41
Add: Changes in accounting policies
Corrections of prior period errors
Business combination under common
control
Others
II. Balance at the beginning of the year 7,819,869,170.00 22,176,353,536.77 210,930,850.00 158,251,774.94 1,908,883,208.67 7,460,883,520.03 39,313,310,360.41
III. Increase/(decrease) during the period 24,429,657.81 235,104,648.17 2,255,199.14 315,933,916.78 577,723,421.90
(1) Total comprehensive income 235,104,648.17 315,933,916.78 551,038,564.95
(2) Shareholders' contributions and reduction 23,286,765.84 23,286,765.84
(i) Shareholders’ contributions in ordinary
share
(ii) Amount of share-based payments
23,286,765.84 23,286,765.84
recognized in equity
(iii) Others
(3) Profit distribution
(i) Transfer to surplus reserve
(ii) Distribution to shareholders
(iii) Others
(4) Transfer within equity
(i) Capital reserves converted to share capital
(ii) Surplus reserves converted to share capital
(iii) Loss made up by surplus reserves
(iv) Other comprehensive income transferred
to retained earnings
(v) Others
(5) Special reserve 1,142,891.97 2,255,199.14 3,398,091.11
(i) Additions 1,142,891.97 2,255,199.14 3,398,091.11
(ii) Utilisation
(6) Others
IV. Balance at the end of the year 7,819,869,170.00 22,200,783,194.58 210,930,850.00 393,356,423.11 2,255,199.14 1,908,883,208.67 7,776,817,436.81 39,891,033,782.31
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Parent Company Statement of Changes in Shareholders’ Equity
Beijing Shougang Co., Ltd. for the year ended 30 June 2022
Unit: RMB Yuan
Amount of the prior period
Item
Total
Less: treasury Other comprehensive shareholders’
Share capital Capital reserve Special reserve Surplus reserve Retained earnings
shares income
equity
I. Balance at the end of previous year 6,750,325,410.00 17,070,281,351.14 210,930,850.00 185,566,210.59 1,908,883,208.67 8,909,429,239.79 34,613,554,570.19
Add: Changes in accounting policies
Corrections of prior period errors
Business combination under common
control
Others
II. Balance at the beginning of the year 6,750,325,410.00 17,070,281,351.14 210,930,850.00 185,566,210.59 1,908,883,208.67 8,909,429,239.79 34,613,554,570.19
III. Increase/(decrease) during the period 1,069,543,760.00 5,123,853,239.92 - -14,214,734.41 835,587.07 131,967,857.96 6,311,985,710.54
(1) Total comprehensive income -14,214,734.41 166,088,489.36 151,873,754.95
(2) Shareholders' contributions and reduction 1,069,543,760.00 5,123,034,014.50 - 6,192,577,774.50
(i) Shareholders’ contributions in ordinary
1,069,543,760.00 5,080,043,062.18 6,149,586,822.18
share
(ii) Amount of share-based payments
18,056,494.08 18,056,494.08
recognized in equity
(iii) Others 24,934,458.24 24934458.24
(3) Profit distribution -34,120,631.40 -34,120,631.40
(i) Transfer to surplus reserve
(ii) Distribution to shareholders
(iii) Others -34,120,631.40 -34,120,631.40
(4) Transfer within equity
(i) Capital reserves converted to share capital
(ii) Surplus reserves converted to share capital
(iii) Loss made up by surplus reserves
(iv) Other comprehensive income transferred
to retained earnings
(v) Others
(5) Special reserve 819,225.42 835,587.07 1,654,812.49
(i) Additions 819,225.42 835,587.07 1,654,812.49
(ii) Utilisation
(6) Others
IV. Balance at the end of the year 7,819,869,170.00 22,194,134,591.06 210,930,850.00 171,351,476.18 835,587.07 1,908,883,208.67 9,041,397,097.75 40,925,540,280.73
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Notes to the Financial Statements
I. General Information of the Company
1. Company profile
Beijing Shougang Company Limited (hereinafter referred to as the Company) is a joint stock
limited company established by means of raising, which is approved by Beijing Municipal People's
Government Jingzhenghan [1998] No. 34 and exclusively initiated by Shougang Group Co., Ltd.
With the approval of zjxz [1999] No. 91 document issued by China Securities Regulatory
Commission, the Company was the first to issue 350,000.00 thousand ordinary shares (A shares) to
the public in Shenzhen Stock Exchange from 21 to 27 September, 1999 by the combination of legal
person placement and online issuance, with par value of RMB 1 per share and issue price of RMB
5.15 per share, with the stock code of 000959. The Company registered with approval of Beijing
Administration for Industry and Commerce on 15 October, 1999. The Company holds the business
license with unified social credit code of 1100001028663 (1-1), with the registered capital of RMB
2,310,000,000.00.
The Company issued the convertible corporate bonds worthed RMB 2,000,000 thousand on 16
December, 2003 upon the approval of zjfxz [2003] No. 107 document issued by China Securities
Regulatory Commission. On 31 December, 2003, the convertible bond was listed and traded in
Shenzhen Stock Exchange. The bond is abbreviated as “Shougang Convertible Bond” with the bond
code of “125959”. The convertible bonds were converted into shares since June 16, 2004, and met
the redemption conditions until 26 February 2007. Accordingly, the board of directors of the
company issued the redemption announcement. As of 6 April, 2007, the date of convertible bond
redemption, the total amount of Shougang convertible bonds was RMB1,950,217,500.00, which
was converted into the Company's shares, with an accumulated increase of RMB 656,526,057.00 in
share capital. The Company obtained a new business license of legal entity on November 20, 2008,
with the registration number 110000000286633 (1-1), and the registered capital changed to RMB
2,966,526,057.00.
On 16 January, 2013, the Company's material assets reorganization was reviewed by the
reorganization committee of CSRC and passed unconditionally. On 29 January, 2014, China
Securities Regulatory Commission issued “Reply on approving material assets reorganization of
Beijing Shougang Co., Ltd. and shares issuance to Shougang Group to purchase assets”. As of 25
April, 2014, the implementation of material assets reorganization of the Company has been
completed. In the material assets reorganization, the private placement to Shougang Group was
2,322,863,543 shares, with par value of RMB 1 each and issue price of RMB 4.29 each. The
Company obtained the new business license of legal entity after capital increment on 9 July, 2014,
with the registration number of 110000000286633, and the registered capital changed to RMB
5,289,389,600.
On 21 April 2021, the event of "Share Issuing to Beijing Jingtou Investment Holding Co., Ltd. etc.
for Assets Purchase and Fundraising" has been approved by the CSRC (CSRC Permit No. [2021]
1400). According to the approval, the Company issued 1,234,898,985.00 shares to Beijing Jingtou
Investment Holding Co., Ltd. and Beijing Jing Guorui Soe Reform and Development Fund(L.P.) for
acquiring 19.1823% shares of Shougang Jingtang United Iron & Steel Co., Ltd. (hereinafter referred
to as the Jingtang Co.) on 23 April 2021. On 17 June 2021, the Company issued 161,135,025 shares
to 8 investors at the price of RMB 5.11 per share, and RMB 823,399,977.75 were collected. After
this issuing, the registered capital of the Company is RMB 6,685,423,610.00.
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
On 9 December 2021, by the approval of 2021 First Extraordinary General Meeting and State
Owned Assets Supervision and Administration Commission (hereinafter referred to as “SASAC”),
the Company has completed the 2021 restricted stock incentive plan. There were 64,901,800.00
shares issued to 386 directors, senior management, key technicians and management backbone with
the issue price of RMB 3.25 per share. Aftere this offering, the registered capital of the Company
changes to RMB 6,750,325,410.00.
On March 18, 2022, the Company obtained the Reply on the Approval for Beijing Shougang Co.,
Ltd. 's to Issue Shares to Shougang Group Co., Ltd. to Purchase Assets and Raise Supporting Funds
(CSRC License [2022] No. 553) issued by China Securities Regulatory Commission. On March 31,
2022, the Company issued 1,015,417,369 shares to Shougang Group Co., Ltd. to purchase 49.00%
equity of Beijing Shougang Steel Trade Investment Management Co., Ltd. held by Shougang
according to the approval document. On May 20, 2022, the Company issued 54,126,391 shares to
eight investors at an issue price of RMB5.38 per share and the total amount of raised funds is
RMB291,199,983.58. After this offering, the registered capital of the Company changes to RMB
7,819,869,170.00.
The Company obtained the new business license of legal entity on 22 December, 2016 after the
integration of five certificates, with the unified social credit code 911100007002343182.
The statutory address is Shijingshan Road, Shijingshan District, Beijing.
The Company has established the corporate governance structure of the general meeting of
shareholders, the board of directors and the board of supervisors. At present, the Company sets up
serval functional departments, for instance, secretary office of the board of directors, the planning
and financing department, the manufacturing department, the marketing center, the purchasing
center, the human resources department, the equipment department, the energy department, the
environmental protection department, the quality inspection department, the office, etc, as well as
the subordinate factories such as Shougang Qian'an Iron&Steel Co., Ltd. and auxiliary production
department, like the technical center. The company has six subsidiaries: Shougang Jingtang United
Iron&Steel Co., Ltd., Beijing Shougang Cold Rolling Co., Ltd., Qian'an Shougang Metallurgical
Technology Co., Ltd., Shougang Zhixin Qian'an Electromagnetic Materials Co., Ltd., Beijing
Shougang New Energy Material Technology Co., Ltd., and Beijing Shougang Steel Trade
Investment Management Co., Ltd.
The business scope of the Company includes iron and steel smelting, steel calendaring processing,
copper smelting and calendaring processing and sales; manufacturing and sales of sinter, coke and
chemical products; blast furnace residual pressure power generation and production and sales of gas;
processing and sales of industrial waste; sales of metal materials, coke, chemical products,
mechanical and electrical equipment, building materials, general equipment, hardware, furniture
and decorative materials; equipment leasing (excluding automobiles); telecommunications services;
insurance agency services; insurance broker services; loading, unloading and handling services;
software development; advertising design and agency; warehousing services; technology
development, technical consultation, technology transfer, technical service and technical training;
investment and investment management.
This financial statement and its accompanying notes were approved by the third extraordinary
meeting of the board of directors of the company for the year 2023 on 10 August, 2023.
2. Scope of consolidated financial statements
The scope of the consolidated financial statements is determined on the control basic, the scope
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
includes six subsidiaries, which are Shougang Jingtang United Iron&Steel Co., Ltd., Beijing
Shougang Cold Rolling Co., Ltd., Qian'an Shougang Metallurgical Technology Co., Ltd., Shougang
Zhixin Qian'an Electromagnetic Materials Co., Ltd., Beijing Shougang New Energy Material
Technology Co., Ltd., and Beijing Shougang Steel Trade Investment Management Co., Ltd.
The details refer to Note VI. Changes in the scope of consolidation and VII. Interests in other
entities.
II. Basis of preparation
The financial statements are prepared in accordance with the latest “China Accounting Standards
for Business Enterprises” and other issued application guidance, interpretations and other related
regulations (collectively known as the “CASBE”) issued by the Ministry of Finance of the PRC
(MOF). Additionally, the Company discloses relevant financial information in accordance with
requirements in the “Preparation Convention of Information Disclosure by Companies Offering
Securities to the Public No.15—General Rules on Financial Reporting” (2014 revised) issued by the
China Securities Regulatory Commission.
The financial statements are prepared on a going concern basis.
The Company adopts the accrual basis of accounting. The financial statements have been prepared
under the historical cost convention, except for certain financial instruments. If the assets are
impaired, corresponding provisions for impairment shall be made in accordance with related
regulations.
III. Significant accounting policies and estimates
The Company has determined the accounting policies and accounting estimates based on the
characteristics of the operation, especially those related to depreciation of fixed assets, amortization
of intangible assets, capitalization conditions of R&D expenses and revenue recognition policies,
the detailed accounting policies refer to Note III. 14, Note III. 18, Note III. 19 and Note III. 25.
1. Statement of compliance with the CAS
The financial statements have been prepared in accordance with CAS, and present truly and
completely the financial position of the consolidated and the Company as at 30 June 2023, and the
financial performance and cash flows from January to June 2023.
2. Accounting period
The accounting year of the Company is from 1 January to 31 Decemeber of each calendar year.
3. Operating cycle
The operating cycle of the Company is 12 months.
4. Functional currency
The Company and domestic subsidiaries use Renminbi (“RMB”) as functional currency.
The financial statements of the Company have been prepared in RMB.
5. Accounting treatments for business combination involving entities under common control and
business combination involving entities not under common control.
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
(1) Business combination involving entities under common control
For the business combination involving entities under common control, the assets and liabilities that
are obtained in the business combination shall be measured at original carrying amounts at the
combination date as recorded by the party being combined. The difference between the carrying
amount of the net assets obtained and the carrying amount of consideration paid for the combination
shall be adjusted to capital reserve (equity premium), if the capital reserve (equity premium) is not
sufficient to absorb the difference, any excess shall be adjusted to retained earnings.
Business combinations involving entities under common control through multiple transactions to
achieve in stages
In the separate financial statements, the initial investment cost is calculated based on the
shareholding portion of net assets of the consolidated party in the carrying amount of the ultimate
controlling party’s consolidated financial statement at the acquisition date. The difference between
the initial investment cost and the sum of the carrying amount of the original investment cost and
the carrying amount of consideration paid for the combination is adjusted to the capital reserve
(equity premium), if the capital reserve is not sufficient to absorb the difference, the excess shall be
adjusted to retained earning.
In the consolidated financial statements, the assets and liabilities obtained at the combination shall
be measured at the carrying value as recorded by the ultimate controlling party at the acquisition
date. The difference between the sum of the carrying value from original shareholding portion and
the new consideration incurred at the acquisition date and the carrying value of net assets obtained
at acquisition date shall be adjusted to capital reserve (equity premium), if the balance of capital
reserve is not sufficient to absorb the differences, any excess is adjusted to retained earnings. The
long-term investment held by combining party before acquisition of control, the profit or loss,
comprehensive income and other change of shareholder’s equity recongnized at the closer date of
the acquisition date and combination date under common control shall separately offset the opening
balance of retained earnings and profit or loss during comparative statements.
(2) Business combinations involving entities not under common control
For business combinations involving entities not under common control, the consideration costs
include acquisition-date fair value of assets transferred, liabilities incurred or assumed and equity
securities issued by the acquirer in exchange for control of the acquiree. The acquirer shall
recognize the acquiree’s identifiable asset, liabilities and contingent liabilities that satisfy the
recognition criteria at fair values at the date of acquisition.
The excess of combination costs and the acquirer’s interest in the fair value of the acquiree’s
identifiable net assets is recognized as goodwill, which is measured at cost less any accumulated
impairment losses subsequently. If the acquirer’s interest in the net fair value of the acquiree’s
identifiable net assets exceeds the combination costs, the acquirer shall reassess the measurement
and recognize any excess remaining in profit or loss after reassessment.
Business combinations involving entities not under common control through multiple transactions
to achieve in stages
In the separate financial statements, the initial investment cost is the sum of the carrying amount of
the equity investment held by the entity prior to the acquisition date and the additional investment
cost at the acquisition date. The disposal accounting policy of other comprehensive income related
with equity investment prior to the purchase date recognized under equity method shall be
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
compliance with the method when the acquire disposes the related assets or liabilities.
Shareholder’s equity due to the changes of other shareholder’s equity other than the changes of net
profit, other comprehensive income and profit distribution shall be transferred to profit or lose for
current period when disposed. If the equity investment held by the entity prior to the acquisition
date is measured at fair value, the cumulative change in fair value recognized in other
comprehensive income shall be transferred to retained earnings for current period under cost
accounting method.
In the consolidated financial statements, the combination cost is the sum of consideration paid at
acquisition date and fair value of the acquiree’s equity held prior to acquisition date; the equity of
the acquiree held prior to acquisition date shall be re-measured at the fair value at acquisition date,
the difference between the fair value and book value shall be recognized as investment gain or loss
for the current period. Other comprehensive income and changes of other shareholder’s equity
related with acquiree’s equity held prior to acquisition date shall be transferred to profit or loss for
current period at acquisition date, besides the other comprehensive income incurred by the changes
of net assets or net liabilities due to the re-measurement of defined benefit plan.
(3) Transaction costs for business combination
The overheads for the business combination, including the expenses of audit, legal services,
valuation advisory, and other related administrative expenses, are recorded in profit or loss for the
current period when expenditure incurred. The transaction costs of equity or debt securities issued
as the considerations of business combination are included in the initial recognition amount of the
equity or debt securities.
6. Method of preparing consolidated financial statements
(1) Scope of consolidated financial statements
The scope of consolidated financial statements is determined on the control basis. Control exists
when the Company has power over the investee, rights to variable returns from involvement with
related activities of investee and has the ability to affect its returns through its power over the
investee. A subsidiary is an entity that is controlled by the Company (including separable parts of an
enterprise or investee and structured entities controlled by the Company, etc).
(2) Method of preparing consolidated financial statements
The consolidated financial statements are based on the financial statements of the Company and its
subsidiaries, and are prepared by the Company in accordance with other relevant information. In
preparing the consolidated financial statements, the Company and its subsidiaries are required to
apply consistent accounting policy and accounting period, intra-group transactions and balances
shall be offset.
The subsidiary acquired through a business combination involving entities under common control
in the reporting period shall be included in the scope of the consolidation from the beginning of the
combination date, the subsidiary’s income, expenses and profits should be included in the
consolidated results of operations and cash flows from the acquisition date respectively.
The subsidiary acquired through a business combination involving entities not under common
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
control in the reporting period, the subsidiary’s income, expenses and profits are included in the
consolidated results of operations, and cash flows are included in the consolidated cash flow
statement from the acquisition date to the end of the reporting date.
The portion of the subsidiary’s equity that is not attributable to the Company is treated as
non-controlling interests and separately presented in the consolidated balance sheet within
shareholders’ equity. The portion of a subsidiary’s profit or loss that is attributable to
non-controlling interests presented in the consolidated income statement of net profit or loss as “net
profit attributable to non-controlling interests”. Where the amout of losses of a subsidiary
attributable to the non-controlling shareholders in the current period exceeds the share of the
opening balance of owner’s equity of the subsidiary, the excess shall offset non-controlling
interests.
(3) Purchase of the minority equity in the subsidiary
The difference between the long-term equity investments costs acquired by the purchase of minority
equity and the share of the net assets that the subsidiaries have to continue to calculate from the date
of purchase or the date of consolidation in proportion to the new shareholding ratio is adjusted to
the capital reserve (equity premium), if the capital reserve is not sufficient, any excess is adjusted to
retained earning. The difference between disposal of partial equity investment without losing
control over its subsidiary and the disposal of long-term equity investment corresponding to the
share of the net assets of the subsidiaries from the date of purchase or the date of consolidation is as
well.
(4) Loss of control of subsidiaries
If the control right is lost due to disposal of partial equity investment or other reasons, the
remaining equity shall be re-measured according to its fair value on the date of losing control. The
difference between the summary of consideration obtained from the disposal of the equity and the
fair value of the remaining equity, less the difference between the share of the original assets and
the share of the net assets that have been continuously calculated from the date of purchase from the
date of the original shareholding, is included in the current period profit or loss and; if there is a
goodwill for the subsidiary, the amount of the goodwill also shall be deducted.
The other comprehensive income related to the original subsidiary’s equity investment shall be
transferred to current period profit and loss when control is lost, except for the other comprehensive
income arising from the movement of net liabilities or assets investee’s re-measurement of defined
benefit plan.
(5) Treatment of step disposal until the loss of control of subsidiaries
By stepping through multiple transactions to dispose of the equity investment in the subsidiary until
it loses control, if the clauses, conditions and economic impacts of the transaction satisfy one or
more of the following criteria, the Company will consider the transactions as a package transaction
for the accounting treatment:
①The transactions are entered simultaneously or in consideration of the mutual influence;
②Only the transactions as a whole can achieve one complete business outcome;
③The occurrence of a transaction is depending on the occurance of at least one of other
transactions;
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
④The transaction alone is not economical, however, it becomes economical to consider the other
transactions together.
In the separate financial statements, by stepping through multiple transactions to dispose of the
equity investment in the subsidiary until it loses control, when it is not a package transaction,
carrying forward the book value of each disposal of equity relative to the corresponding long-term
equity investment, and the difference between the considerations and the book value of the disposal
of long-term equity investment is recognized in the current period investment income or loss. When
it is a package transaction, the price difference between the disposal price and the disposal
investment before the loss of control is recognized as other comprehensive income in the
consolidated financial statements, and is transferred to the current period profit or loss of control
when the control is lost.
In the consolidated financial statements, the measurement of the remaining equity and treatment of
the loss of disposal is in accordance to “Treatment of loss of control of subsidiaries” as described
above. The difference between the disposal consideration and the related share of net assets of the
subsidiaries, which has been continuously calculated since the purchase date corresponding to the
equity disposal should be treated as follows:
①When it is a package transaction, the difference shall be recognized as the other comprehensive
income and transferred to the current period profit or loss of control when the control is lost
②When it is not a package transaction, the difference shall be recorded to capital reserve (share
premium) as equity transaction and could not be transferred to the current period profit or loss of
control when the control is lost.
7. Joint arrangement and joint operations
Joint arrangement refers to an arrangement under the joint control of two or more entities. The joint
arrangement of the Company is classified as either a joint operation or a joint venture.
(1) Joint operation
Joint operation is a joint arrangement whereby the Company have rights to the assets, and
obligations for the liabilities, relating to the arrangement.
The Company recognizes the following items in relation to its interest in a joint operation in
accordance with CAS:
A. its solely-held assets, and its share of any assets held jointly;
B. its solely-assumed liabilities, and its share of any liabilities incurred jointly;
C. its revenue from the sale of its share of the output arising from the joint operation;
D. its share of the revenue from the sale of the output by the joint operation;
E. its solely-incurred expenses, and its share of any expenses incurred jointly.
(2) Joint venture
A joint venture is a type of joint arrangement whereby the Company that has joint control of the
arrangement has rights to the net assets of the joint venture.
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
The Company conducts accounting treatment for the investment of joint ventures in accordance
with the provisions of equity method accounting related to long-term equity investment.
8. Cash and cash equivalents
Cash represents the cash on hand and deposits which are readily available for payment. Cash
equivalents represent the Company’s short-term highly liquid investments which are readily
convertible into known amounts of cash and subject to an insignificant risk of changes in value.
9. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
(1) Recognition and derecognition of financial instruments
The Company recognises a financial asset or a financial liability when, and only when, it becomes a
party to the contractual provisions of the instrument.
A financial asset will be derecognized when it satisfies one or more of the following conditions:
① The contractual rights to receive cash flows from the financial asset expire;
② The financial asset has been transferred, and it satisfies the following conditions for
derecognition.
The financial liability (or part of it) is derecognized when its contractual rights (or part of it) expire.
If the Company (as a debtor) makes an agreement with the creditor to replace the current financial
liability with assuming a new financial liability, and contractual provisions are different in
substance, the current financial liability shall be derecognized and a new financial liability shall be
recognized.
All financial assets purchased or sold in regular way are recognised or derecognised on the trading
date when the Company commits to purchase or sell the asset.
(2) Classification and measurement of financial assets
The Company classifies its financial assets, based on the entity's business model for managing the
financial assets and the contractual cash flow characteristics of the financial assets, as financial
assets at amortized cost, financial assets at fair value through other comprehensive income and
financial assets at fair value through profit or loss.
Financial assets measured at amortized cost
The Company shall classify financial assets that meet the following conditions and are not
designated as financial assets at fair value through profit or loss as financial assets measured at
amortized cost:
The financial asset is held whose objective is to collect contractual cash flows;
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.
After initial recognition, this type of financial asset using effective interest rate method to be
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measured at amortized cost. The gain or loss generated by the financial assets measured at
amortized cost and not part of any hedging relationship shall be accounted in the profit or loss for
the year when the financial assets are derecognized, amortized by effective interest method or
recognized impairment.
Financial assets measured at fair value through other comprehensive income
The Company shall classify financial assets that meet the following conditions and are not
designated as financial assets at fair value through profit or loss as financial assets measured at fair
value through other comprehensive income:
The financial asset is held within a business model whose objective will be achieved by both
collecting contractual cash flows and trading financial assets;
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.
After initial recognition, the financial assets are subsequently measured at fair value. Interest,
impairment loss/gain and exchange loss/gain calculated by the effective interest rate method are
recognised in profit or loss, while other profit or loss shall be recognised in other comprehensive
income. When derecognized, the accumulated profit or loss previously recognised in other
comprehensive gains shall be transferred to current profit or loss.
Financial assets measured at fair value through profit or loss
In addition to the aboving financial assets which are measured at amortized cost or at fair value
through other comprehensive income, the Company classifies all other financial assets as financial
assets measured at fair value through profit or loss. In order to eliminate and significantly reduce
accounting mismatches, the Company irrevocably designates some financial assets that should be
measured at amortized cost or at fair value through other comprehensive income as financial assets
at fair value through profit or loss during the initial recognition.
After initial recognition, the financial assets are subsequently measured at fair value, and the profit
or loss (including interest and dividend income) generated shall be recognised in current profit or
loss, unless the financial assets are part of the hedging relationship.
The business model of managing financial assets refers to how the Company manages financial
assets to generate cash flow. The business model determines if the source of cash flow for financial
assets managed by the Company is collecting contract cash flow, selling financial assets or both of
them. The Company determines the business model of financial assets management on the basis of
objective facts and the specific business goals of financial assets management decided by key
managers.
The Company evaluates the characteristics of the contract cash flow of financial assets to determine
whether the contract cash flow generated by the relevant financial assets on a specific date is only to
pay principal and the interest, which is based on the amount of unpaid principal. Among them,
principal refers to the fair value of financial assets at initial recognition; interest includes the
consideration of time value of money, credit risk related to the unpaid principal in a specific period,
and other basic credit risks, costs and profits. Additionally, the Company evaluates the terms and
conditions of the contracts that may alter time distribution or amount of cash flow in financial asset
contracts to determine whether they satisfy the requirements of the aboving contract cash flow’s
characteristics.
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Only when the Company changes its business model of managing financial assets, all the financial
assets affected shall be reclassified on the first day of the first reporting period after the business
model alteration, otherwise, financial assets shall not be reclassified after initial recognition.
A financial asset is measured at its fair value at initial recognition. For financial assets measured at
fair value thorugh profit or loss, the relevant transaction costs are charged to profit or loss; for other
financial assets, the relevant transaction costs are recognized as initial investment costs. For the
trade receivables arising from the sale of goods or services provided do not contain or take into
account significant financing components, the initial investment costs shall be the consideration,
which the Company is entitled to receive with the expectation.
(3) Classification and measurement of financial liabilities
The Company classifies its financial liabilities at initial recognition as financial liabilities measured
at fair value through profit or loss and financial liabilities at amortized cost. With respect to
financial liabilities not classified as at fair value through profit or loss, transactions costs are
charged to initial recognition cost.
Financial liabilities measured at fair value through profit or loss
Financial liabilities at fair value through profit or loss, including financial liabilities held for trading
and those are designated as at fair value through profit or loss at initial recognition. For these
financial liabilities, they are subsequently measured at fair value and gains or lossess from the
change of fair value and related dividend and interest expense are recognized in profit or loss for the
year.
Financial liabilities measured at amortized cost
Other financial liabilities are subsequently measured at amortized cost using the effective interest
method, the gains and losses arising from derecognition or amortization is recognised in profit or
loss for the year.
Distinction between financial liabilities and equity instruments
The financial liability is the liability that satisfies one of following cateria:
① Contractual obligation to deliver cash or other financial instruments to another entity.
② Under potential adverse conditions, contractual obligation to exchange financial assets or
financial liabilities with other entity.
③ The contract that will or may be settled in the entity’s own equity instruments and is a
non-derivative for which the entity is or may be obliged to deliver a variable number of the entity’s
own equity instruments.
④ The derivative contract that will or may be settled in the entity’s own equity instruments other
than by the exchange of a fixed number of the entity’s own equity instruments for a fixed amount of
cash or other financial assets.
Equity instrument is the contract that evidences the residual equity in the assets of an entity after
deducting all of its liabilities.
If the Company cannot unconditionally avoid fulfilling a contractual obligation by delivering cash
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or other financial assets, the contractual obligation satisfies the definition of financial liability.
If the financial instrument must or could be settled by the Company’s own equity instrument, the
Company should consider whether the Company’s equity instrument as the settlement instrument is
a substitute of cash or other financial assets or the residual equity in the assets of an entity after
deducting all of its liabilities. If it is the former one, the financial instrument is the Company’s
financial liability; if it is the latter one, the tool is the equity instrument of the Company.
(4) Fair value of financial instruments
For the determination method of fair value of financial assets and financial liabilities, please refer to
Note III.10.
(5) Impairment of financial assets
The Company performs impairment assessment and recognizes loss allowance for the following
financial assets based on the expected credit losses.
Financial assets measured at amortized cost;
Debt investment and trade receivables measured at fair value through other comprehensive
income;
Contract assets as defined in Accounting Standards for Enterprises No.14- Revenues;
Lease receivables;
Financial guarantee contracts (expect for the contracts measured at fair value through profit or
loss, financial assets transformation not qualify for derecognition and continuing involvement
of transferred financial assets).
Measurement of expected credit loss
The expected credit loss refers to the weighted average of the credit loss of financial instruments
that are weighted by the risk of default. Credit loss refers to the difference between all contractual
cash flows receivable from the contracts and all cash flows expected to be received, that is, the
present value of all cash shortages.
The Company considers the reasonable and basis information about past events, current situation
and forecast of future economic situation, calculates the probability weighted amount of the present
value of the difference between the receivable cash flow of the contract and the expected cash flow
with the risk of default as the weight, and confirms the expected credit loss.
The Company separately measures the expected credit losses of financial instruments at different
stages. The credit risk on a financial instrument has not increased significantly since initial
recognition, which is in Stage I. The Company measures the loss provision in accordance with
expected credit losses for the next 12 months. If the credit risk of financial instruments has
increased significantly since the initial recognition, but no credit impairment has occurred, which is
in Stage II. The Company measures the loss provision in accordance with the expected credit losses
for the whole lifetime of the financial instrument. If the financial instrument has occurred credit
impairment since initial recognition, which is in Stage III, and the Company measures the loss
provision in accordance with the expected credit losses for the whole lifetime of the financial
instrument.
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For the financial instruments with lower credit risk at the balance sheet date, the Company assumes
that the credit risk has not increased significantly since the initial recognition, and measures the loss
provision in accordance with expected credit losses for the next 12 months.
The whole lifetime expected credit loss, refers to the expected credit loss caused by all possible
defaults during the whole expected lifetime. The 12-month expected credit losses, refer to the
expected credit loss caused by all possible defaults during the next 12 months after balance sheet
date (if the expected duration of financial instrument is less than 12 months, then for the expected
duration), which is part of the whole lifetime expected credit losses.
When measuring the expected credit loss, the maximum maturity period that the Company needs to
consider is the maximum contract maturity period (including the consideration of option of renewal)
the enterprise facing credit risk.
For financial instruments in Stage I, Stage II and with lower credit risk, the Company calculates
interest income on the basis of the book balances without deduction of impairment provisions and
with effective interest rates. For financial instruments in Stage III, the Company calculates interest
income on the basis of the book balances minus the impairment provision and with effective interest
rate.
Notes receivable, Accounts receivable, and Contract assets
For notes receivable, accounts receivable and contract assets, whether or not there are significant
financing elements, the Company always measures the loss provision in accordance with the whole
lifetime expected credit losses.
If the expected credit loss information of the the independent financial asset cannot be evaluated by
a reasonable cost, the Company divides and combines notes receivable and accounts receivable
according to the characteristics of credit risk. On the basis of the combination, the Company
calculates the expected credit losses. The basis of determining combination is as follows:
A. Notes receivable
Combination 1: Bank acceptances
Combination 2: Bank acceptances with lower credit rating and Commercial acceptances
B. Accounts receivable: Accounts of receivable-trade
Other receivables
According to the characteristics of credit risk, the Company divides other receivables into serval
combinations. On the basis of the combination, the Company calculates the expected credit losses.
The basis of determining the combination is as follows:
Other receivables Combination 1: Imprest and deposit, etc.
Other receivables Combination 2: Other current account
For the other receivables combination, the Company calculates the expected credit losses through
the exposure on default and the next 12-month or the whole lifetime expected credit loss rate.
Debt investments and other debt investments
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For debt investments and other debt investments, the Company calculates the expected credit losses
through the exposure on default and the next 12-month or the whole lifetime expected credit loss
rate, according to the nature of the investment, the types of counterparty and risk exposure.
Assessment of Significant Increase in Credit Risk
By comparing the default risk of financial instruments on balance sheet date with the default risk on
initial recognition date, the Company determines the relative change of default risk of financial
instruments during the expected lifetime of financial instruments to evaluate whether the credit risk
of financial instruments has increased significantly since the initial recognition.
When determining whether credit risk has increased significantly since the initial recognition, the
Company considers reasonable and valid information, including forward-looking information,
which can be obtained without unnecessary additional costs or efforts. Information considered by
the Company includes:
The debtor cannot pay principal and interest on the expiration date of the contract;
Serious deterioration of external or internal credit ratings (if any) of financial instruments that
have occurred or are expected to occur;
Serious deterioration of the debtor’s operating results that have occurred or are expected to
occur;
Changes in the existing or anticipated technological, market, economic or legal environment
will have the significant negative impact on the debtor’s repayment capacity.
According to the nature of financial instruments, the Company evaluates whether credit risk has
increased significantly on the basis of an independent financial instrument or a combination of
financial instruments. When assessing on the basis of the combination of financial instruments, the
Company can classify financial instruments based on common credit risk characteristics, such as
overdue information and credit risk rating.
If the delay exceeds 30 days, the Company determines that the credit risk of financial instruments
has increased significantly.
Financial assets that have occured credit impairment
On the balance sheet date, the Company assesses whether credit impairment has occurred in
financial assets measured at amortized cost and debt investments measured at fair value through
other comprehensive income. When one or more events adversely affect the expected future cash
flow of the financial assets occur, the financial assets transfer to the financial assets with credit
impairment. Evidence of credit impairment of financial assets includes the following observable
information:
Issuer or debtor suffer from significant financial difficulties;
Debtor breaches any of the contractual stipulations, for example, fails to pay or delays the
payment of interests or the principal, etc.;
In consideration of economic situationand contract related to the financial difficulties of the
debtor, the Company grants concessions to the debtor that will not be made under any other
circumstances.
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Debtor is probable to go bankrupt or undergo other financial restructuring.
Financial difficulties of issuer or debtor lead to the disappearance of financial assets active
market.
Presentation of expected credit loss reserve
In order to reflect the changes happened to the credit risk of financial instruments since the initial
recognition, the Company recalculates the expected credit loss on each balance sheet date. The
increase or reversal of the loss provision resulting therefrom is recognised as an impairment loss or
gain in the current profit or loss.For financial assets measured at amortized cost, loss provision
offsets the carrying amount of the financial assets presentated on the balance sheet; for debt
investments measured at fair value through other comprehensive income, the Company recognizes
its loss provision through other comprehensive income and does not offset the financial assets’
carrying amount.
Write off
If the Company no longer reasonably expects that the financial assets contract cash flow can be
recovered fully or partially, the financial assets book balance will be reduced directly. Such
reduction constitutes derecognition of the financial assets. The situation usually occurs when the
Company determines that the debtor has no assets or income to generate sufficient cash flows to
pay the amount to be reduced. However, in accordance with the Company’s procedures for
recovering due payment, the financial assets reduced may still be affected by enforcement activities.
If the reduced financial assets can be recovered later, the returns as impairment losses shall be
recorded in the profit or loss.
(6) Transfer of financial assets
Transfer of financial assets is the transfer or delivery of financial assets to another entity (the
transferee) other than the issuer of financial assets.
A financial asset is derecognised when the Company has transferred substantially all the risks and
rewards of the asset to the transferee. A financial asset is not derecognised when the Company
retains substantially all the risks and rewards of the financial asset.
When the Company has neither transferred nor retained substantially all the risks and rewards of the
financial asset, it either (i) derecognises the financial asset and recognises the assets and liabilities
created in the transfer when it has not retained control of the asset; or (ii) continues to recognise the
transferred asset to the extent of the Company’s continuing involvement, in which case, the
Company also recognises an associated liability.
(7) Offsetting of financial assets and financial liabilities
When the Company has currently enforceable legal rights to offset the recognized financial assets
and financial liabilities, and there is an intention to settle on a net basis or to realize the financial
assets and settle the financial liabilities, the financial assets and financial liabilities shall be
presented in balance sheet with the amount after offsets. Besides, the financial assets and financial
liabilities shall be presented separately in balance sheet and are not allowed to be offset.
10. Fair value measurement
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Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.
The Company measures related assets or liabilities at fair value and assumes that selling assets or
transferring liabilities in an orderly transaction in the principal market of related assets or liabilities;
in the absence of a principal market, the Company assumes the transaction in the most
advantageous market. Principal market (or the most advantageous market) is the market that the
Company can enter into on measurement date. The Company adopts the presumptions used by
market participants in achieving the maximum economic value of pricing the assets or liabilities.
For financial assets or financial liabilities in the active market, the Company uses the quoted price
in active market as fair value. Otherwise, the Company uses valuation technique to determine the
fair value.
Fair value measurement of non-financial assets considers market participants’ ability to generate
economic benefits by using the assets in its highest and best use or by selling it to another market
participant that would use the asset in its highest and best use.
The Company adopts the valuation techniques that are appropriate under current circumstances and
for which sufficient data and other supporting information are available to measure fair value,
giving priority to the use of relevant observable inputs, and using unobservable inputs only if the
observable inputs are unavailable or not feasible to obtain.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input
that is significant to the fair value measurement as a whole: Level 1 inputs are quoted (unadjusted)
market prices in active markets for identical assets or liabilities; Level 2 inputs are observable
inputs for related assets or liabilities, either directly or indirectly other than the inputs within Level
1; Level 3 inputs are unobservable inputs for related assets or liabilities.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by
reassessing categorization at the end of each reporting period.
11. Inventories
(1) Classification
Inventories of the Company include raw materials, finished goods, lower-valued consumables and
self-made semi-finished goods
(2) Mesurement method of cost of delivered inventories
Inventories are quoted at actual costs when acquired. Raw materials, finished goods and self-made
semi-finished goods are determined on the weighted average basis.
(3) Basis for determining the net realisable value and method for inventories provision
Net realisable value is the estimated selling price deducted by the estimated costs to completion, the
estimated selling expenses and related taxes. The net realisable value is measured on the basis of
obtained verified evidences and considerations for the purpose of holding inventories and the effect
of post balance sheet events.
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At the end of each reporting period, if the cost is in excess of net realisable value, provision for
inventories is recognized in profit or loss. The Company usually recognizes provision according to
the independent inventory item. When the circumstances that previously caused inventories to be
written down below cost no longer exist, the original amount of the write-down is reversed.
(4) Inventory system
Inventories are accounted for using the perpetual inventory system.
(5) Amortization method for consumables and packaging
Low-valued consumables are charged with the one-off amortization method and multi-stage
amortization method at consumption.
12. Assets classified as held for sale and discontinued operations
(1) Classification and measurement of non-current assets or disposal groups held for sale
The Company classifies the non-current asset or disposal group as held for sale when the carrying
amount of the non-current asset or disposal group will be recovered through sale (including
exchange transactions of non-monetary assets with commercial substance) rather than through
continuing use.
Above mentioned non-current assets not include investment properties subsequently measured with
the fair value model, biological assets measured at fair value less cost of sales, assets arising from
employee benefits, financial assets, deferred tax assets and contractual rights under insurance
contracts.
The disposal group is the group of assets to be disposed of, by sale or otherwise, together as a whole
in a single transaction, and liabilities directly associated with those assets that will be transferred in
the transaction. Under certain circumstances, disposal group included goodwill acquired in the
business combination.
The non-current asset or disposal group is classified as held for sale when all the following criteria
are satisfied: According to the trading routine of selling such asset or disposal group in similar
transactions, the non-current asset or disposal group is available for immediate sale in current
circumstance; the sale is highly probable to occur, that is, the Company has made a resolution on a
sale plan and obtained the assured purchase agreement. The sale is expected to be completed within
one year. If the control of the subsidiary is lost due to the sale of investment on the subsidiary and
the investment intended to be sold satisfies all conditions for the classification of assets held for sale,
the Company classifies all the investment in that subsidiary as held for sale in separate financial
statements, and classifies all the assets and liabilities of that subsidiary as held for sale in
consolidated financial statements no matter whether the Company will keep part of the equity
investment.
Excess of the carrying amount over the fair value less costs to sell is recognized as assets
impairment losses in the initial recognition or remeasurement on balance sheet date of non-current
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asset or disposal group. The carrying amount of goodwill allocated to the disposal group shall be
deducted firstly by the impairment loss recognized for the disposal group, and then the carrying
amount of each non-current asset in the disposal group shall be proportionately deducted in
accordance with the proportion of the carrying value of the non-current assets in the disposal group.
If net amount of fair value of the non-current asset or disposal group less costs to sell increases, the
amount of the write-down will be recovered but not in excess of the cumulative impairment loss
that has been recognised after classified as held for sale. The reverse amount is recorded in the
current profit or loss. Additionally, the reduced carrying amount of goodwill could not be recovered.
The Company does not depreciate (or amortise) the non-current assets classified as held for sale or
assets of the disposal group classified as held for sale. Interest and other expenses attributable to the
liabilities of the disposal group classified as held for sale continue to be recognised. If an
investment or a part of the investment in an associate or a joint venture is classified as held for sale,
equity method is not used for the part classified as held for sale, while equity method is used for the
rest part (the part not classified as held for sale) continuely. When the Company does not have
material impact on an associate or a joint venture due to the sale transaction, equity method will be
discontinued.
Where a non-current asset or disposal group is classified as held for sale but no longer meets the
conditions for holding for sale classification, the Company discontinues its classification as held for
sale and counts it according to the lower of:
① The carrying amount of the asset and disposal group before classification as held for sale,
adjusted for any depreciation, amortisation or impairment recognised under the assumption that the
asset or disposal group has not been classified as held for sale;
② Recoverable amount
(2) Discontinued operations
Discontinued operation refers to the separately identifiable component that has been disposed or
been classified as held for sale and satisfies one of the follwing conditions:
① It represents am independent major business line or a separate geographical area of operations;
② It is part of a single co-ordinated plan to dispose of an independent major business or a separate
geographical area of operations;
③ It is a subsidiary acquired exclusively with a view to resale.
(3) Presentation
The Comapany presents the non-current assets classified as held for sale and the assets of disposal
group classified as held for sale as “Assets classified as held for sale” in balance sheet. The
liabilities of disposal group classified as held for sale is presented as “Liabilities classified as held
for sale” in balance sheet.
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The Company presents profit or loss from discontinued operations separately from profit or loss
from continuing operations in income statement. Impairment loss and reversal amount and any
disposal gain or loss of the non-current asset or disposal group classified as held for sale that does
not satisfy the definition of a discontinued operation is presented in profit or loss from continuing
operations. Any impairment loss and reversal amount belongs to discontinued operations, and
disposal gain or loss is presented in profit or loss from discontinued operations.
The disposal group which is planned to cease use rather than for sale, and satisfies the conditions of
components of discontinued operation, the Company presents it as discontinued operation from the
date of cessation.
For the discontinued operation presented in the current period, former profit or loss of continuing
operations will be presented as discontinued operations for comparative accounting period in the
current financial statements. If the discontinued operations no longer satisfy the conditions to be
classified as held for sale, former profit or loss of discontinued operations will be presented as
continuing operations for comparative accounting period in the current financial statements.
13. Long-term equity investments
Long-term equity investments consist of equity investments in subsidiaries, joint ventures and
associates. An associate is an enterprise over which the Company has significant influence.
(1) Recognition of initial investment cost
Long-term equity investment from the business combination: For a long-term equity investment
acquired through a business combination under common control, the initial investment cost of the
long-term equity investment shall be the absorbing party’s share of the carrying amount of the
owners’ equity of the party being absorbed in the consolidated financial statements of the ultimate
controlling party at combination date. For business combination involving entities not under
common control, the initial investment cost of long-term equity should be the cost of acquisition.
Long-term equity investment from other methods：for a long-term equity investment acquired by
paying cash, the initial investment cost shall be the actual purchase price paid; for those acquired by
the issue of equity securities, the initial investment cost shall be the fair value of the equity
securities issued.
(2) Subsequent measurement and recognition of profit or loss
The cost method is applied for the investment of subsidiaries unless the investment satisfies the
conditions of held for sale; the equity method is applied for the investment of joint ventures and
associates.
When the cost method is adopted in long-term equity investments, except for cash dividends or
profit distributions declared but not yet distributed in the purchase price or consideration of
obtaining the investment, profits or cash dividends declared to be distributed by the investee should
be recognised as investment income in the current period.
When the equity method is adopted in long-term equity investments, the initial cost of an
investment in excess of the share of investee’s fair value on identifiable net assets remains
unchanged; the initial cost of the investment that falls short of the share of investee’s fair value on
identifiable net assets shall be adjusted, for the difference which had been charged to current profit
or loss.
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When the equity method is adopted, the Company recognises its share of the investee’s profit or
loss, as well as its share of the investee’s other comprehensive income, as investment income or loss
and other comprehensive income, and adjusts the carrying amount of the investment accordingly;
the investor’s share of profit distributions or cash dividends declared by the investee is deducted
from the carrying amount of the investment. For the changes of equity in an investee other than
profit or loss, the investor adjusts the carrying amount of the investment and recognised it in capital
reserve (other capital reserves). The recognition of the investee’s results should be based on the fair
values of the individual identifiable assets of the investee according to the Company’s accounting
policies and accounting period. Additionally, the recognition should be based on the adjusted net profit
of the investee.
If the Company has significant influences or can implement joint control over investees due to
additional investment, the initial investment cost is recognized as the sum of the fair value of the
original portion of equity investment and the additional investment cost under equity method on the
transformation date. The accumulated fair value changes accounted in other comprehensive income
of non tradable equity instrument investment which is initially classified as fair value through other
comprehensive income are transferred to retained earnings while accounting by equity method
instead.
If the Company loses control of an investee with joint control or significant influence retained after
partial disposal of its shares, the remaining equity after disposal should be accounted in accordance
with the rules “CASBE 22-Recognition and Measurement of Financial Instruments” and the
difference between the fair value on the day of losing control and the book value is recognised in
profit or loss. For the other comprehensive income recognized by equity investment under the
equity method, the basis of the accounting treatment is the same as that on disposal of related assets
or liabilities by the investee, the amount recognised in the equity on the changes in other equity
movements should be all charged to the profit or loss for the year.
If the Company loses control of an investee after partial disposal of its shares, the remaining equity
after disposal has joint control or significant influence over the investee, the equity method shall be
adopted and the remaining equity shall be deemed to be recognized under equity method since the
acquisition date; if the remaining equity has no joint control or significant influence over the
investee, the remaining equity after disposal should be accounted in accordance with the
rules“CASBE 22-Recognition and Measurement of Financial Instruments” and the difference
between the fair value on the day of losing control and the book value is recognised in profit or loss.
If the shareholding ratio of the Company is reduced due to the increase of investments of other
investors and thus the control is lost, but the joint control or significant influence can be exerted on
the investee, the Company should recognize the incremental shares of net assets according to the
new investments. The difference between the original book value of the long-term equity
investment corresponding to the decrease in the shareholding ratio should be included in the current
profit or loss; then, the equity shall be deemed to be recognized under equity method since the
investment date and adjusted according to the new shareholding ratio.
Unrealised profit or loss resulting from transactions between the Company and its associates or
joint ventures shall be calculated according to the proportion of its shareholding, which is
attributable to the Company, and then to be recognized in investment income after offset. While
unrealised profit or loss resulting from transactions between the Company and investee belongs to
impairment loss of transferred assets cannot be offset.
(3) Basis of determining the existence of joint control or significant influence over an investee
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Joint control is the agreed sharing of control of an arrangement, which exists only when decisions
about the relevant activities require unanimous consent of the parties sharing control. In
determining whether there is a joint control, the first judge is determining whether the relevant
arrangement is controlled collectively by all the participants involved or the group of the
participants involved and then to determine whether the decisions related to the basic operating
activities should require the unanimous consent of the participants involved. If all participants or the
group of the participants involved must act consistently to determine the relevant arrangement, it is
considered that all participants or the group of the participants control the arrangement. If two or
more participants in the collectively control of certain arrangement, it shall not be considered as
joint control. Protection of rights shall not be considered in determining whether there is joint
control.
Significant influence is the power to participate in the financial and operating policy decisions of
the investee but is not control or joint control over those policies. When determining whether there
is the significant influence over the investee, the voting rights held by the investors or the other
entites and the effect of potential voting rights if it can be converted into the equity of investee,
including the effect of current convertible warrants, security option and convertible bonds.
When the Company, directly or indirectly through subsidiaries, owns 20% of the investee (including
20% ) or more but less than 50% of the voting shares, it has significant impact on the investee
unless there is clear evidence to show that in this case the Company cannot participate in the
production and business decisions of the investee, and has no significant influence; when the
Company owns 20% (excluding) or less of the voting shares, it is not considered to have significant
impacts on the investee in general, unless there is clear evidence to show that in this case the
Company can participate in the production and business decisions of the investee so as to have the
significant influence.
(4) Held-for-sale equity investments
Accounting treatment for the entity investment, or a portion of an equity investment, in associates
or joint ventures that is classified as held for sale refers to Note III, 12.
Any remaining equity investment that has not been classified as held for sale shall be accounted
under the equity method.
When the equity investment in associates or joint ventures previously classified as held for sale and
no longer satisfies the conditions to be classified as held for sale, it will be adjusted under equity
method retrospectively as from the date of classification as held for sale.
(5) Method of impairment testing and impairment provision
For investment in subsidiaries, associates and joint ventures, refers to Note III, 20 for the method of
asset impairment provision.
14. Fixed assets
(1) Recognition of fixed assets
Fixed assets represent the tangible assets held by the Company for use in production of goods, use
in supply of services, rental or for administrative purposes with useful lives over one accounting
year.
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Fixed assets are recognised when it is probable that the related future economic benefits will flow
into the company, and the cost can be measured reliably.
Fixed assets of the Company are initially measured at actual costs in acquisition.
The subsequent expenditure related to fixed assets is included in cost of the fixed assets when the
relevant economic benefits are likely to flow into the Company and its cost can be measured
reliably; routine repair expenditure of fixed assets that do not meet the conditions for capitalization
is included in the profit and loss or the cost of relevant assets according to the beneficiaries when it
occurs. The book value of the replaced part shall be derecognized.
(2) Depreciation of fixed assets
Depreciation of the fixed assets is calculated on the straight-line basis. The fixed asset is
depreciated since the state of intended use and no longer depreciated when recognition is terminated
or being classified as non-current assets held for sale. Without considering impairment provision,
the estimated useful lifetime, estimated residual values, and the annual depreciation rates of each
category of fixed assets are as follows:
Estimated Estimated Annual
Category
useful life residual value depreciation rate
Pant and buildings 25-43 years 5% 3.80-2.21%
Machinery and equipment 12-28 years 5% 7.92-3.39%
Vehicles 10 years 5% 9.50%
Electronic equipment 10 years 5% 9.50%
Industrial furnace 13 years 5% 7.31%
Metallurgical equipment 19 years 5% 5.00%
Others 14-22 years 5% 6.79-4.32%
The fixed assets that have been withdrawn for impairment provision shall also be deducted from the
accumulative amount of impairment provision to recognize depreciation rate.
(3) Impaitment test and impairment provision of fixed assets refer to Note III, 20.
(4) Useful lives, residual values and the depreciation method are reviewed by the Company at least at
each financial year end.
Useful lives are adjusted if the expected useful lives are different from the original estimates; the
estimated net residual values are adjusted if they are different from the original estimates.
(5) Disposal of fixed assets
The fixed assets are derecognied when the fixed assets are diposed or when it is not expected to
generate economic benefits through use or disposal of the fixed assets. The amount of the disposal
income from the sale, transfer, scrapping or damage of fixed assets after deducting its book value
and relevant taxes shall be included in the current profit and loss.
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15. Construction in progress
Cost comprises the direct costs of construction and capitalised borrowing costs on related borrowed
funds during the period of construction.
Construction in progress is reclassified to the appropriate category of fixed assets when completed
and ready for use.
Impairment provision of construction in progress refers to Note III. 20.
16. Materials for construction of fixed assets
The materials for construction of fixed assets of the Company refers to the material prepared for
construction in progress, including engineering materials, equipments not yet installed and tools
prepared for production, etc.
Purchase measured at cost, the recipients transfer to construction in progree, and the remaining
transfer to inventory after the completion of construction.
Impairment provision of materials for construction of fixed assets refers to Note III, 20.
Closing balance of materials for construction of fixed assets is presented in “Construction in
progress” in balance sheet.
17. Borrowing costs
(1) Principles of capitalising borrowing costs
All the borrowing costs that are directly attributable to construction or production of all qualifying
assets are capitalized and recorded in relevant assets costs. Other borrowing costs are treated as an
expense and recorded in the profit or loss. The capitalization of borrowing costs commences when:
① Expenditures for the assets are incurred, including paying cash, transferring non-cash assets or
undertaking interest-bearing debt for acquisition or construction of the assets, which could be
capitalized;
② Borrowing costs are incurred; or
③ The acquisition and construction activities that are necessary to bring the assets to get ready for
the intended use or sale have commenced.
(2) Capitalization period of borrowing costs
The capitalization of borrowing costs ceases when the asset being acquired or constructed is
substantially ready for its intended use or sale and borrowing costs incurred thereafter are treated as
an expense to be recorded in the profit or loss.
Capitalization of borrowing costs is suspended during extended periods in which the acquisition or
construction of a fixed asset is interrupted abnormally and the interruption lasts for more than three
months until the acquisition or construction is resumed; borrowing costs in normal interruption
period continue to be capitalized.
(3) Calculation of capitalization rate and amount of borrowing costs.
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For specific borrowings, the borrowing costs eligible for capitalization are the actual borrowing
costs incurred during the current period deducted by any temporary interest or investment income;
for general borrowings, the borrowing costs eligible for capitalization are determined by applying a
capitalization rate to the weighted average of capital expenditure that exceeds the specific
borrowings. The capitalization rate is calculated based on the weighted average interest rate of
general borrowings.
During the capitalization period, exchange differences on foreign currency specific borrowings shall
be capitalized; exchange differences on foreign currency general borrowings shall be recognized as
current profit or loss.
18. Intangible assets
(1) Valuation method, service life and impairment test
Intangible assets include land use rights, software and etc.
Intangible assets are measured at cost initially and its useful lifetime shall be analyzed and
recognized when obtained. An intangible asset with finite useful lifetime shall be amortized over the
expected useful life using method which can reflect the expected recognition of economic benefits
related to the assets when the intangible asset is available for use; an intangible asset whose
expected recognition cannot be reliably determined is amortized at straight-line amortization
method; an intangible asset with indefinite useful lifetime shall not be amortized.
The amortization method of intangible assets with limited service life is as follows:
Intangible assets with finite useful lives are amortized over the useful lives on the straight-line basis
according to the category, expected useful lifetime and estimated residual value. The annual
amortization rates of each category of intangible assets are as follows:
Annual
Category Useful lifetime Amortisation method
amortization rate
Software 5-10 years Straight line method 10.00-20.00%
Land use rights 40-50 years Straight line method 2.00-2.50%
The Company reviews the useful lives and amortization method of intangible assets with finite
useful lifetime, adjusts original estimated amount and processes according to the accounting
estimate change if there are any differences with original estimated, at least at the end of each
reporting period.
The Company estimates an intangible asset can no longer bring future economic benefits at the
balance sheet date, and then the carrying amount of the intangible asset should be reversed to the
current profit or loss.
For the impairment provision of intangible assets, refers to Note III, 20.
19. Development expenditure
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Expenditure on internal research and development projects is classified into expenditure on the
research stage and expenditure on the development stage.
Expenditure on the research stage is recognised in the profit or loss when incurred.
Expenditure on the development stage is capitalized only when: the technical feasibility of
completing the intangible asset so that it is available for use or sale; the intention to complete the
intangible asset is to use or sell it; the method of generating economic benefits by the intangible
assets, including that the intangible asset can be proved that the output or the intangible asset itself
has market or, if it is to be used internally, the usefulness of the intangible asset also need to be
proved; the availability of adequate technical, financial and other resources to complete the
development and the ability to use or sell the intangible asset; the expenditure attributable to the
development stage can be measured reliably. Otherwise, it shall be presented in the profit or loss.
The research and development projects of the Company will enter into the development stage after
meeting the above conditions and passing through the studies of technical feasibility and economic
feasibility, and the projects approval.
Capitalized expenditure on the development stage is presented as “Development expenditures” in
the balance sheet and shall be transferred to intangible assets when the project is completed to its
intended use state.
20. Impairment of assets
The impairment for the long-term equity investments, fixed assets, construction in progress,
right-of-use asset, intangible assets, etc. (excluding inventories, investment property measured at
fair value model, deferred income tax assets and financial assets) of subsidiaries, associates and
joint ventures are determined as follows:
The Company assesses whether any indicator of impairment exists as of the end of each reporting
period, and, if yes, performs impairment test by estimation of the asset’s recoverable amount. For
goodwill acquired in business combinations, intangible assets with indefinite lives and intangible
assets without intended use state, an annual impairment test is performed no matter whether there is
any indicator of impairment.
An asset’s recoverable amount is calculated as the higher of the asset’s fair value less costs to sell
and the present value of estimated future cash flows generated from the use of assets. The
recoverable amount is calculated on individual basis unless it is not applicable, in which case the
recoverable amount is determined for the asset group to which the asset belongs. An asset group is
recognized based on whether the cash inflows generated by the asset group are largely independent
to those of other assets or asset groups.
When the recoverable amount of an asset or an asset group is less than its carrying amount, the
carrying amount is reduced to its recoverable amount. The reduction amount is charged to profit or
loss and an impairment allowance is provided.
In terms of impairment test of the goodwill, the carrying amount of the goodwill arising from
business combination shall be allocated to the related asset group in accordance with a reasonable
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basis at acquisition date. Those that are difficult to be allocated to relevant assets shall be allocated
to relevant assets groups. Relevant assets or assets groups refer to those that can benefit from the
synergies of business combination and are not larger than the Company’s recognized reporting
segment.
When there is an indication that the goodwill related asset and asset group are prone to impair, the
Company should execute impairment test for the asset and asset group excluding goodwill,
calculate the recoverable amount and recognize the corresponding impairment loss. The Company
should execute impairment test for the asset or asset group including goodwill and compare the
recoverable amount with carrying amount, provision for impairment of assets shall be recognized
when the recoverable amount of assets is lower than its carrying amount.
Impairment losses cannot be reversed in subsequent accounting periods after recognition.
21. Long-term prepaid expenses
The long-term prepaid expenses of the Company are recorded as the actual cost and evenly
amortized on straight-line basis over the expected beneficial period. For the long-term prepaid
expense items that cannot benefit the later accounting period, the amortized value is recognized in
the profit or loss.
22. Payroll and employee benefits payable
(1) The scope of employee benefits payable
Payroll and employee benefits payable are all forms of consideration given by an entity in exchange
for service rendered by employees or the termination of employment, including short-term
employee benefits, post-employment benefits, termination benefits and other long-term employee
benefits. The benefits that the Company provides to the spouses, children and dependents of
employees, the late employees’ family and other beneficiaries also shall be deemed as payroll and
employee benefits payable.
According to liquidity, employment benefits are presented separately as “Payroll and employee
benefits payable” and “Long-term payroll and employee benefits payable” in the balance sheet.
(2) Short-term employee benefits payable
A liability when an employee has provided service in exchange for employee benefits, such as
wages, bonuses, social security contributions (including medical insurance, injury insurance,
maternity insurance, etc.) and house funding to be paid is recognized as the current profit or loss or
costs of related assets.
(3) Post-employment benefits
Post-employment benefit plan includes defined contribution plan and defined benefit plan. Defined
contribution plan is the post-employment benefit plan under which the Company pays fixed
contributions into a separate fund and will have no future obligations to pay the contributions.
Defined benefit plan is the post-employment benefit plan other than defined contribution plan.
Defined contribution plan
Defined contribution plan includes basic pension insurance, unemployment insurance, etc.
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During the accounting period of service provided by the employee, the Company shall recognise the
contribution payable according to the defined contribution plan as the liability and record the
corresponding amount in the current profit or loss or the cost of the relevant asset.
(4) Termination benefits
The Company is required to recognize termination benefits with a corresponding charge to profit or
loss at the earlier of when the entity can no longer withdraw an offer of those benefits and when it
recognizes any related restructuring costs.
For implementing the internal retirement plan, the economic compensation before the official
retirement date belongs to termination benefits. From the date of ceasing service to the normal
retirement date, the wages of the internally retired employees and the social insurance premiums to
be paid are included in the current profit or loss one time. Economic compensation after the official
retirement date (such as normal pension) should be treated as post-employment benefits.
23. Provisions
If the contingent considerations or contingent liabilities satisfy the following conditions
simultaneously, a provision will be recognized by the Company:
(1) The obligation is a present obligation assumed by the Company; and
(2) It is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation; and
(3) A reliable estimate can be made of the amount of the obligation.
Provisions are initially measured at the best estimate of the expenditure required to settle the present
obligation, after considering risks, uncertainties, present value, etc. If the impact of time value of
money is significant, the best estimate is determined as its present value of future cash outflow.
Provisions shall be reviewed at the end of each reporting period and adjusted to reflect the current
best estimate.
If the settlement of provision is fully or partially compensated by a third party or the others, and the
compensated amount can be definitely received, then the provision can be recognised as asset
separately. The compensated amount shall not be greater than the carrying amount of the recognized
liability.
24. Share-based payments and equity instruments
(1) Category of share-based payments
The Company’s share-based payment is either equity-settled share-based payment or cash-settled
share-based payment.
(2) Determination of fair value of equity instruments
For the existence of an active market for options and other equity instruments granted by the
Company, the fair value is determined at the quoted price in the active market. For options and
other equity instruments with no active market, option pricing model shall be used to estimate the
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fair value of the equity instruments. The following factors shall be taken into account using option
pricing models: A. the exercise price of the option; B. the validity period of the option; C. the
current market price of the share; D. the expected volatility of the share price; E. predicted dividend
of the share; and F. risk-free rate of the option within the validity period.
(3) Recognition of vesting of equity instruments based on the best estimate
On each balance sheet date within the vesting period, the estimated number of equity instruments
expected to vest is revised based on the best estimate made by the Company according to the latest
available subsequent information as to changes in the number of employees with exercisable rights.
On the vesting date, the final estimated number of equity instruments expected to vest should equal
the actual number of equity instruments expected to vest.
(4) Accounting treatment of implementation, modification and termination of share-based payment
Equity-settled share-based payment shall be measured at the fair value of the equity instruments
granted to employees. If the right may be exercised immediately after the grant, the fair value of
equity instrument shall, on the date of the grant, be included in the relevant costs or expenses, and
the capital reserve shall be increased accordingly. If the right can not be exercised until the vesting
period comes to an end or until the specified performance conditions are met, then on each balance
sheet date within the vesting period, the services obtained in the current period shall, based on the
best estimate of the number of vested equity instruments, be included in the relevant costs or
expenses and the capital reserve at the fair value of the equity instrument on the date of the grant.
After the vesting date, the Company make no adjustment to the relevant costs or expenses as well as
the total amount of the owner’s equities which have been confirmed.
Cash-settled share-based payment shall be measured in accordance with the fair value of liability
calculated and recognised based on the shares or other equity instruments undertaken by the
Company. If the right may be exercised immediately after the grant, the fair value of the liability
undertaken by the Company shall, on the date of the grant, be included in the relevant costs or
expenses, and the liabilities shall be increased accordingly. If the right may not be exercised until
the vesting period comes to an end or until the specified performance conditions are met, on each
balance sheet date within the vesting period, the services obtained in the current period shall, based
on the best estimate of the information about the exercisable right, be included in the relevant costs
or expenses and the corresponding liabilities at the fair value of the liability undertaken by the
Company. On each balance sheet date and on each account date prior to the settlement of the
relevant liabilities, the Company re-measures the fair value of the liabilities and include the changes
in the current profits and losses.
When there are changes in Company’s share-based payment plans, if the modification increases the
fair value of the equity instruments granted, corresponding recognition of service increase in
accordance with the increase in the fair value of the equity instruments; if the modification
increases the number of equity instruments granted, the increase in fair value of the equity
instruments is recognised as a corresponding increase in service achieved. Increase in the fair value
of equity instruments refer to the difference between the fair values of the modified date. If the
modification reduces the total fair value of shares paid or not conductive to the use of other
employees share-based payment plans to modify the terms and conditions of service, it will
continue to be accounted for in the accounting treatment as if the change had not occurred, unless
the Company cancelled some or all of the equity instruments granted.
During the vesting period, if the cancelled equity instruments (except for failure to meet the
conditions of the non-market vesting conditions) granted by the Company to cancel the equity
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instruments granted amount treated as accelerated vesting of the remaining period should be
recognised immediately in profit or loss, while recognising capital reserves. If employees or other
parties can choose to meet non-vesting conditions but they are not met in the vesting period, the
Company will treat them as cancelled equity instruments granted.
25. Revenue
(1) General principle
Revenue is recognized when the Company has satisfied its performance obligations in the contract,
that is, when the customer obtains control of the relevant goods or services.
Where a contract has two or more performance obligations, the Company determines the
stand-alone selling price at contract inception of the distinct good or service underlying each
performance obligation in the contract and allocates the transaction price in proportion to those
stand-alone selling prices. The Company recognises as revenue the amount of the transaction price
that is allocated to each performance obligation.
The Company satisfies a performance obligation over time if one of the following criteria is met; or
otherwise, a performance obligation is satisfied at a point in time:
① The customer simultaneously receives and consumes the benefits provided by the Company’s
performance as the Company performs;
② The customer can control the asset created or enhanced during the Company’s performance;
③ The Company’s performance does not create an asset with an alternative use to it and the
Company has an enforceable right to payment for performance completed to date.
For performance obligation satisfied over time, the Company recognises revenue over time by
measuring the progress towards complete satisfaction of that performance obligation. When the
outcome of that performance obligation cannot be measured reasonably, but the Company expects
to recover the costs incurred in satisfying the performance obligation, the Company recognises
revenue only to the extent of the costs incurred until such time that it can reasonably measure the
outcome of the performance obligation.
For performance obligation satisfied at a point in time, the Company recognises revenue at the point
in time at which the customer obtains control of relevant goods or services. To determine whether a
customer has obtained control of goods or services, the Company considers the following
indicators:
① The Company has a present right to payment for the goods or services, as the customer obtains
the current payment obligation for the goods.
② The Company has transferred the legal title of the goods, as the customer has obtained the legal
title of the goods.
③ The Company has transferred physical possession of the goods to the customer, as the customer
has obtained the physical possession of the goods.
④ The Company has transferred the significant risks and rewards of legal title of the goods to the
customer, as the customer has obtained the significant risks and rewards of legal title of the goods.
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⑤ The customer has accepted the goods or services.
⑥ Other indications that the customer has obtained control of goods.
A contract asset is the Company’s right to consideration in exchange for goods or services that it has
transferred to a customer when that right is conditional on factors other than the passage of time.
The Company recognises loss allowances for expected credit loss on contract assets. The
Company’s right to consideration that is unconditional (only the passage of time is required) shall
be presented as accounts receivable. The Company’s obligation to transfer goods or services to a
customer for which the Company has received consideration (or an amount of consideration is due)
from the customer shall be presented as the contract liability.
The Company offsets the contract assets and contract liabilities under the same contract and
presents the net amount. If the net amount is the debit balance, it is presented under “contract
assets” or “other non-current assets” according to its liquidity; if the net amount is the credit
balance, it is presented under “contract liabilities” or “other non-current liabilities” according to its
liquidity.
(2) Specific recognition methods
The specific revenue recognition methods of the company are as follows:
Contracts for the sale of goods
Contracts for the sale of goods between the Company and its customers usually only involves the
performance obligations of the transferring of the goods. The Company generally recognizes
revenue based on the following considerations, taking into account the timing of control transfer.
This includes obtaining the current collection rights of the goods, the transfer of the main risks and
rewards of the ownership of the goods, the transfer of the legal ownership of the goods, the transfer
of the physical assets of the goods, and the acceptance of the goods by the customer.
Contracts for rendering of services
The service contract between the Company and its customers usually includes performance
obligations for labor services, technical consulting or technical services. As a result of the
satisfaction of the performance obligation the Company, the customers obtain and consume the
economic benefits of the service while the Company provides the service simultaneously. The
Company is entitled to recover from the accumulative performance of the contract that has been
completed to date, except when progress of the performance cannot be reasonably determined. The
Company determines the progress of the performance of the services provided in accordance with
the input method. When the progress of the performance cannot be reasonably determined, and the
costs incurred by the Company are expected to be compensated, the revenue will be recognized
based on the amount of costs incurred, until the progress of the performance can be reasonably
determined.
26. Contract cost
Contract costs are either the incremental costs of obtaining a contract with a customer or the costs to
fulfil a contract with a customer.
Incremental costs of obtaining a contract are those costs that the Company incurs to obtain a
contract with a customer that it would not have incurred if the contract had not been obtained e.g.
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an incremental sales commission. The Company recognises as an asset the incremental costs of
obtaining a contract with a customer if it expects to recover those costs. Other costs of obtaining a
contract are expensed when incurred.
If the costs to fulfil a contract with a customer are not within the scope of inventories or other
accounting standards, the Company recognises an asset from the costs incurred to fulfil a contract
only if those costs meet all of the following criteria:
① The costs relate directly to an existing contract or to a specifically identifiable anticipated
contract, including direct labour, direct materials, allocations of overheads (or similar costs), costs
that are explicitly chargeable to the customer and other costs that are incurred only because the
Company entered into the contract;
② The costs generate or enhance resources of the Company that will be used in satisfying (or in
continuing to satisfy) performance obligations in the future;
③ The costs are expected to be recovered.
Assets recognised for the incremental costs of obtaining a contract and assets recognised for the
costs to fulfill a contract (the “assets related to contract costs”) are amortised on a systematic basis
that is consistent with the transfer to the customer of the goods or services to which the assets relate
and recognised in profit or loss for the current period.
The Company recognises an impairment loss in profit or loss to the extent that the carrying amount
of an asset related to contract costs exceeds:
① Remaining amount of consideration that the Company expects to receive in exchange for the
goods or services to which the asset relates; less
② The costs that relate directly to providing those goods or services that have not yet been
recognised as expenses.
The contract performance cost recognized as an asset shall be shown in the "Inventories" item with
an amortization period of no more than one year or one normal operating cycle at the time of initial
recognition, while the amortization period exceeding one year or one normal operating cycle at the
time of initial recognition shall be shown in the item of "Other non-current assets".
The contract acquisition cost recognized as an asset shall be listed in the item of "Other current
assets" when the amortization period does not exceed one year or one normal operating cycle at the
time of initial recognition, and listed in the item of "other non-current assets" when the amortization
period exceeds one year or one normal operating cycle at the time of initial recognition.
27. Government grants
Government grants are recognized in profit or loss, when they are highly probable to be received
and all conditions are fulfilled.
If a government grant is in form of monetary asset, it is measured at the amount received or
receivable. If a government grant is in form of nonmonetary asset, it is measured at fair value of the
asset. If the fair value cannot be reliably determined, it is measured at the nominal amount as RMB
1.
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Asset-related government grants are recognized when the government document designates that the
government grants are used for constructing or forming long-term assets. Otherwise, the
government grants should be income-related.
If the government document is inexplicit, the Company should recognize the part corresponding to
assets value of government grants as asset-related government grants if the conditions are to form
long-term assets and the remaining part as income-related grants. As for indistinguishable
government grants, the whole should be recognized as income-related grants.
Asset-related government grants can be accounted by offsetting the carrying amout of related assets
or being recognized as deferred income, and amortized systematically and reasonably to profit or
loss over the useful life of the related asset. If the income-related grant is a compensation for related
incurred expenses or losses, the grant shall be recognized in the current pofit or loss or offset related
costs immediately; if the grant is a compensation for related expensesor losses in future period, the
grant is recognized as deferred income and should be recognized in profit or loss for the period
when the expenses or losses are incurred. For the government grant measured at the nominal
amount, it should be recognized in profit or loss immediately for the period. The Company adopts a
consistent approach to the same or similar government grants.
The government grants related to daily activities shall be recognized in other income or offset
related expenses. Otherwise, it shall be recognized in non-operating income and expenses.
When the recognized government grants need to be returned, the carrying amount of the assets shall
be adjusted if the carrying amount of related assets is written down during the initial recognition; if
there is the balance of related deferred income, the book balance of related deferred income shall be
written off, and the excess part shall be recognized in the current profit or loss; for the other
circumstances, the government grants shall be recognized in the current profit or loss directly.
28. Deferred tax assets and deferred tax liabilities
Income tax comprises current tax and deferred tax, and is normally recognized as income tax
expense in profit or loss, except for goodwill generated in a business combination or related
deferred tax items that have been recognized directly in equity.
Based on the differences between the carrying amount of an asset or liability in the statement of
financial position and its tax base, the Company adopts the liability method for the provision of
deferred tax.
A deferred tax liability is recognized in respect of all taxable temporary differences except those
arising from the following transactions:
(1) The initial recognition of goodwill; or the initial recognition of an asset or liability in a
transaction which is not a business combination, and at the time of the transaction, affects neither
accounting profit nor taxable profit; and
(2) As for the temporary differences associated with subsidiaries, joint ventures and associates: the
Company is able to control the timing of the reversal of the temporary difference and it is probable
that the temporary difference will not reverse in the foreseeable future.
A deferred tax asset is recognized in respect of all deductible temporary differences to the extent
that it is probable that taxable profit will be available against which the deductible temporary
difference will be utilized except those arising from the initial recognition of an asset or liability in
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a transaction which:
(1) The transaction is not a business combination, and at the time of the transaction, affects neither
accounting profit nor taxable profit; and
(2) As for deductible temporary differences associated with subsidiaries, joint ventures and
associates: a deferred tax asset is recognized to the extent that it is probable that the temporary
difference will reverse in the foreseeable future, and taxable profit will be available against which
the temporary difference can be utilized.
At the end of each reporting period, deferred tax assets and liabilities are measured at the tax rates
that are expected to apply to the period when the asset is realized or the liability is settled, taking
into account the income tax effect of expected asset realization or liability settlement at the end of
each reporting period.
The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is
reduced to the extent that it is no longer probable that sufficient taxable profits will be available to
allow the related tax benefit to be utilized. Any such reduction is reversed to the extent that it
becomes probable that sufficient taxable profits will be available.
29. Lease
(1) Identification of lease
On the commencement date of the contract, as the lessee or lessor, the Company evaluates whether
the customer in the contract has the right to obtain almost all the economic benefits arising from the
use of the identified assets during the use period, and has the right to dominate the use of the
identified assets during the use period. If one party in the contract transfers the right to control the
use of one or more identified assets within a certain period in exchange for consideration, the
Company recognizes the contract as lease or includes lease.
(2) The Company as lessee
On the beginning date of the lease, the Company recognises right-of-use assets and lease liabilities
for all leases, except for short-term lease and low-value asset lease with simplified approach.
For the right-of-use assets, refers to Note III.30.
Lease liabilities are initially measured according to the present value of the unpaid lease payments
at the beginning of the lease term calculated by the embedded interest rate of the lease. Where the
embedded interest rate cannot be determined, the incremental loan interest rate shall be used as the
discount rate. Lease payments includes: fixed payments and in-substance fixed payments, and
where the lease incentives exists, the lease payment is the payment amount less any lease incentives
receivable; variable lease payments depending on index or ratio; the exercise price of a purchase
option if the lessee is reasonably certain to exercise that option; payments for terminating the lease,
if the lease term reflects the lessee exercising that option of terminating; and amounts expected to
be payable by the lessee under residual value guarantees. Subsequently, the interest expense on the
lease liability for each period during the lease term is calculated using a constant periodic rate of
interest and is recognised in current profit or loss. The variable lease payments that are not included
in the measurement of the lease liability are recognised in profit or loss when actually incurred.
Short-term lease
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Short-term leases refer to leases with a lease term of less than 12 months from the commencement
date, except for those with a purchase option.
Lease payments of short-term leases are recognised in the cost of related assets or current profit or
loss on a straight-line basis over the lease term.
For short-term leasing, the Company selects the following types of assets that meet the conditions
for short-term leasing based on the category of leased assets and adopts the simplified processing
method mentioned above.
Low-value asset lease
Low-value asset lease refers to the lease with lower value when the single leased asset is a
brand-new asset.
Lease payments of low-value asset lease are recognised in the cost of related assets or current profit
or loss on a straight-line basis over the lease term.
For a low-value asset lease, the Company chooses to adopt the above simplified approach according
to the specific conditions of each lease.
Lease modification
The Company accounts for a lease modification as a separate lease when the modification occurs
and the following conditions are met: ① the lease modification expands the scope of lease by
adding the right to use one or more of the leased assets; and ② the increased consideration is
equivalent to the amount of the separate price for the expansion of the lease scope adjusted
according to the conditions of the contract.
Where the lease modification is not accounted for as a separate lease, on the effective date of the
lease modification, the Company will reallocate the consideration of the contract after the
modification, redefine the lease term, and remeasure the lease liability based on the present value of
the lease payments after the modification and the revised discount rate.
If a lease modification results in reduction in the scope of the lease or a shortening of the lease term,
the Company reduces the carrying amount of the right-of-use asset accordingly and includes the
profit or loss related to the partial or complete termination of the lease is included in the current
profits and losses.
Other lease modifications result in a remeasurement of the lease liability, the Company adjusts the
carrying amount of the right-of-use asset accordingly.
(3) The Company as lessor
When the Company is a lessor, a lease is classified as a finance lease when the terms of the lease
transfer substantially all the risks and rewards of asset ownership to the lessee. All leases other than
financial leases are classified as operating leases.
Finance lease
Under finance lease, the Company accounts for finance lease receivables at the beginning of the
lease term at the net lease investment, which is the sum of the unsecured residual value and the
present value of the lease receipts outstanding at the commencement date of the lease, discounted at
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
the interest rate implicit in the lease. The Company as lessor calculates and recognises interest
income for each period of the lease term based on a fixed periodic interest rate. Variable lease
payments acquired by the Company as lessor that are not included in the net measurement of lease
investments are included in profit or loss for the period when actually incurred.
Derecognition and impairment of finance lease receivables are accounted for in accordance with the
requirements under the Accounting Standard for Business Enterprises No. 22 – Recognition and
Measurement of Financial Instruments and the Accounting Standards for Business Enterprises No.
23 – Transfer of Financial Assets.
Operating lease
Lease payments under operating lease are recognised in profit or loss on a straight-line basis over
the lease term. Initial direct costs incurred in relation to operating leases are capitalised and
amortised over the lease term on the same basis as rental income and recognised in profit or loss for
the according period. The variable lease payments obtained in relation to operating leases that are
not included in the lease payments are recognised in profit or loss in the period when actually
incurred.
Lease modification
Where the operating lease is modified, the Company accounts for the modification as a new lease
from the effective date of the modification. The amount of lease receipts received in advance or
receivable in respect of the lease prior to the modification is treated as a receipt under the new lease.
Where a finance lease is modified and the following conditions are met, the Company accounts for
the modification as a separate lease: ① the lease modification expands the scope of lease by
adding the right to use one or more of the leased assets; and ② the increased consideration is
equivalent to the amount of the separate price for the expansion of the lease scope adjusted
according to the conditions of the contract.
Where a finance lease is modified and not accounted for as a separate lease, the Company accounts
for the modified lease in the following circumstances: ① If the modification effectives on the
lease commencement date, the lease will be classified as an operating lease, the Company accounts
as a new lease from the effective date of the lease modification, and the net amount of the lease
investment before the effective date of the lease modification shall be taken as the book value of the
leased asset; ② If the modification effectives on the lease commencement date, the lease will be
classified as a finance lease, and the Company conducts accounting treatment in accordance with
the Accounting Standards for Business Enterprises No. 22 – Recognition and Measurement of
Financial Instruments on modifying or renegotiating contracts.
30. Use-right assets
(1) Recognition conditions of use-right assets
Right-of-use assets refer to the right of the Company as the lessee to use the leased assets during the
lease term.
On the commencement date of the lease term, the use-right assets shall be initially measured at cost.
The cost includes: the initial measurement amount of the lease liability; The lease payment made on
or before the commencement date of the lease term, if there is a lease incentive, shall be deducted
from the amount related to the lease incentive already enjoyed; Initial direct expenses incurred by
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
the Company as the lessee; The costs expected to be incurred by the Company, as the lessee, to
dismantle and remove the leased assets, restore the leased assets to the site where they are located
or restore the leased assets to the state specified in the lease terms. As the lessee, the Company shall
recognize and measure the costs of demolition and restoration in accordance with the rules“CASBE
13- Contingencies”. Subsequent adjustments are made for any remeasurement of lease liabilities.
(2) Depreciation method of use-right assets
The Company uses the straight-line method of depreciation. If the Company, as the lessee, can
reasonably determine the ownership of the leased asset at the end of the lease term, depreciation
shall be calculated and withdrawn during the remaining service life of the leased asset. Where it is
not reasonably certain that the ownership of the leased asset can be acquired at the end of the lease
term, depreciation shall be calculated and withdrawn during the period during which the lease term
and the remaining service life of the leased asset are shorter.
(3) For the impairment test method and impairment provision method of use-right assets, please refer to
Note III. 20.
31. Safety fund and maintenance fee
According to the relevant provisions of CQ [2012] No. 16 document issued by Ministry of Finance,
National Development and Reform Commission, State Administration of Work Safety, the actual
operating income of metallurgical and transportation enterprises in the preceding year is the basis
for the provision of safety fund and maintenance fee of the Company, and the method of excess
retirement shall be adopted for the provision.
Safety funds and maintenance fees are included in the cost of relevant products or recognized in the
current profit or loss for the related products, and credited to the special reserve at the same time.
When safety funds and maintenance fees are utilized in compliance with relevant regulations, if the
costs incurred can be categorized as expenditure, the costs incurred should be charged against the
special reserve; if the reserve is used to build up fixed assets, the costs should be charged to
construction in progress, and reclassified to fixed assets when the projects reach the status ready for
intended use. Meantime, expenditures in building up fixed assets are directly charged against the
special reserve with the accumulated depreciation recognized at the same amount and the fixed
assets will not be depreciated in the future.
32. Restricted stock
In the equity incentive plan, the Company grants restricted stock to the incentivied. The incentivied
first subscribe for the stock. If the unlocking conditions specified in the equity incentive plan are
not met, the Company repurchases the stock at the price agreed in advance. Where the restricted
stock issued to the employees has gone through registration and other capital increase procedures in
accordance with relevant provisions, the Company shall, on the grant date, confirm the share capital
and capital reserve (capital premium) according to the subscription payment received from the
employees, also recognize treasury shares and other payables with respect to repurchase
obligations.
33. Significant accounting judgments and estimates
The Company provides continuous assessment of the reasonable expectations of future events, the
critical accounting estimates and key assumptions based on the historical experience and other
82
Beijing Shougang Co. Ltd Semi-Annual Report 2023
factors. The critical accounting estimates and key assumptions that are likely to lead to significant
adjustment risks of the carrying amount of assets and liabilities for the next accounting period are
listed as follows:
Classification of financial assets
The major judgments of the Company involved in determining the classification of financial assets
includes the analysis of business models and the characteristics of contract cash flows, etc.
At the level of financial assets portfolio, the Company determines the business model for managing
financial assets, taking into account factors such as methods of evaluating and reporting financial
assets performance to key managers, the risks of affecting financial assets performance and risk
management methods, and the way in which relevant business managers are paid.
In assessing whether the contract cash flow of financial assets is consistent with the basic lending
arrangements, the Company has the following judgments: whether the principal’s time distribution
or amount may change during the lifetime for early repayment and other reasons; whether the
interest only includes the time value of money, credit risk, other basic lending risks and the
consideration with cost and profit. For example, whether the advance payment only reflects the
unpaid principals and interests based on the unpaid principal, and reasonable compensation paid for
the early termination of the contract.
Measurement of expected credit loss of account receivables
The Company calculates the expected credit losses of accounts receivable through default risk
exposure and expected credit losses rate, and determines the expected credit losses rate on the basis
of default probability and default loss rate. In determining the expected credit losses rate, the
Company uses the experience of internal historical credit loss, and adjusts the historical data with
current situation and forward-looking information. In considering forward-looking information, the
indicators include the risks of economic downturn, external market environment, technological
environment and changes of customer conditions. The Company monitors and reviews regularly the
assumptions related to the calculation of expected credit losses.
Deferred tax assets
Deferred tax assets are recognized to the extent that it is probable that taxable profit will be
available against which the deductible temporary difference and unused tax credit can be utilized.
Significant management judgement is required to determine the amount of deferred tax assets that
can be recognized, based upon the likely timing and level of future taxable profits together with tax
planning strategies.
Determination of unlisted equity investment fair value
The fair value of unlisted equity investment is the estimated future cash flow discounted by the
current discount rate of the project with similar terms and risk characteristics. The valuation
requires the Company to estimate the expected future cash flow and discount rate and is therefore
uncertain. Under limited circumstances, if the information used to determine the fair value is
insufficient, or the possible estimates of the fair value are widely distributed, and the cost represents
the best estimate of the fair value within the range, the cost could represent the appropriate estimate
of the fair value within the distribution range.
34. Changes in significant accounting policies and estimates
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
(1) Changes in significant accounting policies
The Company did not have any change in significant accounting policies during the year.
(2) Changes in significant accounting estimates
The Company did not have any change in significant accounting estimates during the year.
IV. Tax
1. Main types of taxes and corresponding tax rates
Tax type Tax basis Tax rate%
Value-added tax Taxable Revenue 13/9/6
City construction
Turnover tax payable 7/5
and maintenance tax
Education surcharge Turnover tax payable 3
Local education surcharge Turnover tax payable 2
Income tax Taxable Income 25
2. Tax preferential benefits and approvals
On 25 October 2021, the Company obtained the high-tech enterprise certificate issued by Beijing
Municipal Science and Technology Commission with the certificate number of GR202111003103
and the certificate is valid for three years.
On 14 September 2021, Beijing Shougang Cold Rolling Co., Ltd., a subsidiary of the Company
obtained the high-tech enterprise certificate issued by Beijing Municipal Science and Technology
Commission with the certificate number of GR202111000699 and the certificate is valid for three
years.
On 18 September 2021, Shougang Jingtang United Iron & Steel Co., Ltd., a subsidiary of the
Company, obtained the high-tech enterprise certificate issued by Hebei Science and Technology
Commission with the certificate number of GR202113000808 and the certificate is valid for three
years.
On 18 October 2022, Shougang Zhixin Qian'an Electromagnetic Materials Co., Ltd., a subsidiary of
the Company, obtained the high-tech enterprise certificate issued by Hebei Science and Technology
Commission with the certificate number of GR202213001060 and the certificate is valid for three
years.
In accordance to relevant regulations, above companies enjoy a preferential income tax rate at 15%
in 2021.
Since 1 January 2019, according to Cai Shui [2019] No.13 “Notice of the State Administration of
Taxation on implementing policy of tax reduction for small and low-profit enterprises”, for the part
of annual taxable income less than RMB 1 million of small and low-profit enterprises, tax reduction
of 25% shall be included, and then income tax shall be paid at 20%. Since 1 January 2021 to 31
December 2022, according to Cai Shui [2021] No.12 “Announcement on the implementation of
preferential income tax policies for small and micro enterprises and individual industrial and
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
commercial households”, for the part of annual taxable income less than RMB 1 million of small
and low-profit enterprises, the enterprise income tax is reduced by half on the base of the
preferential policies of Cai Shui [2019] No.13. Wuhan Shougang Automobile Material Co., Ltd., the
sub-subsidiary of the Company, satisfies the requirements of small and low-profit enterprise
declaration and its income taxes have been declared as the policy of small and low-profit enterprise.
V. Notes to consolidated financial statements
1. Cash and Cash equivalents
Item 2023.06.30 2022.12.31
Cash on hand 21,492.00 23,581.90
Bank deposits 7,015,994,943.09 8,330,041,178.17
Including: financial companies deposited 6,962,224,236.16 7,693,973,274.02
Other monetary assets 482,089,089.60 1,140,407,761.98
Including: financial companies deposited 406,255,993.08 1,088,690,000.00
Total 7,498,105,524.69 9,470,472,522.05
Others: (1) As at 30 June 2023, except for RMB 432,089,076.86 of security deposit, RMB
50,000,000.00 of fixed term deposit, the Company has no balance of cash and cash equivalents that
are pledged, guaranteed or blocked frozen or overseas balances that restricted to remittance back.
(2) Bank deposits include interest receivable from deposits of RMB 711,077.21. This part of interest
does not belong to "cash and cash equivalents."
2. Notes receivable
2023.06.30
Item
Book balance Bad debt provision Carrying value
Bank acceptance notes 1,316,683,619.71 1,316,683.62 1,315,366,936.09
Commercial acceptance notes 3,874,111,323.25 3,874,111.33 3,870,237,211.92
Total 5,190,794,942.96 5,190,794.95 5,185,604,148.01
Continued:
2022.12.31
Item
Book balance Bad debt provision Carrying value
Bank acceptance notes 1,096,900,639.55 1,096,900.64 1,095,803,738.91
Commercial acceptance notes 5,600,883,165.11 5,600,883.17 5,595,282,281.94
Total 6,697,783,804.66 6,697,783.81 6,691,086,020.85
(1) The pledged notes receivable of the Company at the end of the year
Item Amount pledged at 30 June 2023
Commercial acceptance notes 6,521,200.88
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
(2) Outstanding endorsed or discounted notes that have not matured at the end of the year
Amount derecognized as at 30 June Amount not-derecognized as at 30 June
Item
2023 2023
Bank acceptance notes -- 1,055,722,923.23
Commercial acceptance notes -- 2,996,516,194.06
Total -- 4,052,239,117.29
(3) Notes transferred to accounts receivable due to non-performance of the issuers at the end of the
year
Item Amount transferred to accounts receivable as at 30 June 2023
Commercial acceptance notes 5,015,492.69
(4) Classified by bad debt provision method
2023.06.30
Category Book balance Bad debt provision
Carrying value
Proportion Expected credit loss
Amount Amount
(%) (%)
Assessed bad debt
-- -- -- -- --
provision individually
Assessed bad debt
provision in portfolios
5,190,794,942.96 100.00 5,190,794.95 0.10 5,185,604,148.01
based on credit risk
characteristics
Portfolio 1 -- -- -- -- --
Portfolio 2 5,190,794,942.96 100.00 5,190,794.95 0.10 5,185,604,148.01
Total 5,190,794,942.96 100.00 5,190,794.95 0.10 5,185,604,148.01
Continued:
2022.12.31
Category Book balance Bad debt provision
Carrying value
Proportion Expected credit loss
Amount Amount
(%) (%)
Assessed bad debt
-- -- -- -- --
provision individually
Assessed bad debt
provision in portfolios
6,697,783,804.66 100.00 6,697,783.81 0.10 6,691,086,020.85
based on credit risk
characteristics
Portfolio 1 -- -- -- -- --
Portfolio 2 6,697,783,804.66 100.00 6,697,783.81 0.10 6,691,086,020.85
Total 6,697,783,804.66 100.00 6,697,783.81 0.10 6,691,086,020.85
(5) Provision, recovery or reversal of bad debt
86
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Item Bad debt provision
Opening balance 6,697,783.81
Provision --
Recovery or reversal 1,506,988.86
Closing balance 5,190,794.95
(6) There is no notes receivable written off during the reporting period.
3. Accounts receivable
(1) Disclosed by the ageing
Ageing 2023.06.30 2022.12.31
Within 1 year 1,610,135,174.77 1,492,629,056.11
1 – 2 years 12,094,822.12 13,542,310.43
2 – 3 years 2,139,564.93 3,980,837.55
Over 3 years 5,682,043.12 13,036,557.92
Subtotal 1,630,051,604.94 1,523,188,762.01
Less: provision for bad debts 68,285,440.96 73,179,864.91
Total 1,561,766,163.98 1,450,008,897.10
(2) Disclosed by bad debt provision
2023.06.30
Category Book balance Bad debt provision
Expected credit Carrying value
Amount Proportion (%) Amount
loss (%)
Assessed bad debt
5,682,043.12 0.35 5,682,043.12 100.00 --
provision individually
Assessed bad debt
provision in portfolios
1,624,369,561.82 99.65 62,603,397.84 3.85 1,561,766,163.98
based on credit risk
characteristics
Total 1,630,051,604.94 100.00 68,285,440.96 4.19 1,561,766,163.98
Disclosed by bad debt provision (continued):
2022.12.31
Category Book balance Bad debt provision
Expected Carrying value
Amount Proportion (%) Amount
credit loss (%)
Assessed bad debt
13,036,557.92 0.86 13,036,557.92 100.00 --
provision individually
Assessed bad debt
provision in portfolios
1,510,152,204.09 99.14 60,143,306.99 3.98 1,450,008,897.10
based on credit risk
characteristics
87
Beijing Shougang Co. Ltd Semi-Annual Report 2023
2022.12.31
Category Book balance Bad debt provision
Expected Carrying value
Amount Proportion (%) Amount
credit loss (%)
Total 1,523,188,762.01 100.00 73,179,864.91 4.80 1,450,008,897.10
Assessed bad debt provision individually:
2023.06.30
Accounts receivable
(by debtor) Expected credit loss Reason for
Book balance Bad debt provision
(%) bad debts
Accounts receivable over 3
666,550.43 666,550.43 100.00 Long aging
years
Overdue recourse notes 5,015,492.69 5,015,492.69 100.00 Overdue recourse notes
Total 5,682,043.12 5,682,043.12 100.00
Continued:
2022.12.31
Accounts receivable
(by debtor) Expected credit loss Reason for
Book balance Bad debt provision
(%) bad debts
Accounts receivable over 3
7,362,963.07 7,362,963.07 100.00 Long aging
years
Overdue recourse notes 5,673,594.85 5,673,594.85 100.00 Overdue recourse notes
Total 13,036,557.92 13,036,557.92 100.00
Assessed bad debt provision in portfolios:
2023.06.30
Item
Accounts receivable Bad debt provision Expected credit loss (%)
Within 1 year 1,610,135,174.77 57,409,446.40 3.57
1 – 2 years 12,094,822.12 3,601,271.33 29.78
2 – 3 years 2,139,564.93 1,592,680.11 74.44
Over 3 years -- -- --
Total 1,624,369,561.82 62,603,397.84 3.85
Continued:
2022.12.31
Item
Accounts receivable Bad debt provision Expected credit loss (%)
Within 1 year 1,492,629,056.11 53,147,749.56 3.56
1 – 2 years 13,542,310.43 4,032,265.53 29.78
2 – 3 years 3,980,837.55 2,963,291.90 74.44
Over 3 years -- -- --
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
2022.12.31
Item
Accounts receivable Bad debt provision Expected credit loss (%)
Total 1,510,152,204.09 60,143,306.99 3.98
(3) Provision, recovery or reversal of bad debt
Item Bad debt provision
Opening balance 73,179,864.91
Provision --
Recovery or reversal 4,894,423.95
Closing balance 68,285,440.96
(4) There is no accounts receivable write-off during reporting period.
(5) The top five accounts receivable classified by debtors are as follows:
During the year, the total amount of the top five accounts receivable collected by debtors at the end
of the period is RMB 618,447,749.89, accounts for 37.94% of the total amount of accounts
receivable at the end of the period, and the total amount of the corresponding bad debt provision at
the end of the period is RMB 22,020,618.31.
Closing balance
Percentage of total
Company Name Closing balance of bad
accounts receivable (%)
debt provision
Shougang Casey Steel Co., Ltd. 105,527,619.05 6.47 3,756,783.24
BYD (Shenzhen)Supply Chain Management
206,512,171.53 12.67 7,351,833.31
Co., Ltd.
Great Wall Motor Company Limited 99,659,549.16 6.11 3,549,000.11
BMW Brilliance AUTOMOTIVE Ltd. 81,947,125.54 5.03 2,918,410.93
China First Automobile Co., Ltd. 124,801,284.61 7.66 4,444,590.72
Total 618,447,749.89 37.94 22,020,618.31
4. Financing receivable
Item 2023.06.30 2022.12.31
Notes receivable 6,325,120,221.92 3,489,134,871.56
Less：Other comprehensive income - fair value changes -- --
Closing balance of fair value 6,325,120,221.92 3,489,134,871.56
The Company discounts and endorses most bank acceptance notes in accordance with routine fund
management, therefore the bank acceptance notes are classified as financial assets at fair value
through other comprehensive income.
(1) Classified by bad debt provision method
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
2023.06.30
Category Book balance Bad debt provision
Carrying value
Expected credit
Amount Proportion (%) Amount
loss (%)
Assessed bad debt
provision -- -- -- -- --
individually
Assessed bad debt
provision in
portfolios based on 6,326,385,499.03 100.00 1,265,277.11 0.02 6,325,120,221.92
credit risk
characteristics
Portfolio 1 6,326,385,499.03 100.00 1,265,277.11 0.02 6,325,120,221.92
Portfolio 2 -- -- -- -- --
Total 6,326,385,499.03 100.00 1,265,277.11 0.02 6,325,120,221.92
Continued:
2022.12.31
Category Book balance Bad debt provision
Carrying value
Expected credit
Amount Proportion (%) Amount
loss (%)
Assessed bad debt
provision -- -- -- -- --
individually
Assessed bad debt
provision in
portfolios based on 3,489,832,838.11 100.00 697,966.55 0.02 3,489,134,871.56
credit risk
characteristics
Portfolio 1 3,489,832,838.11 100.00 697,966.55 0.02 3,489,134,871.56
Portfolio 2 -- -- -- -- --
Total 3,489,832,838.11 100.00 697,966.55 0.02 3,489,134,871.56
(2) Provision, recovery or reversal of bad debt
Item Bad debt provision
Opening balance 697,966.55
Provision 567,310.56
Recovery or reversal --
Written-off --
Closing balance 1,265,277.11
(3) The pledged notes receivable of the Company at the end of the year
Item Pledged amount at 30 June 2023
Bank acceptance notes 81,238,016.48
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
(4) Outstanding endorsed or discounted notes that have not matured at the end of the year
Item Amount derecognized at 30 June 2023 Amount not-derecognized at 30 June 2023
Bank acceptance notes 31,912,298,420.72 --
Commercial acceptance notes -- --
Total 31,912,298,420.72 --
5. Prepayments
(1) Disclosed by the ageing of prepayments
2023.06.30 2022.12.31
Ageing
Amount Proportion (%) Amount Proportion (%)
Within 1 year 1,868,500,434.79 99.96 630,526,142.92 99.07
1 – 2 years 70,000.00 0.00 4,353,052.19 0.68
2 – 3 years 12,000.00 0.00 859,392.60 0.14
Over 3 years 730,629.27 0.04 730,629.27 0.11
Total 1,869,313,064.06 100.00 636,469,216.98 100.00
(2) As at 30 June 2023, there is no material prepayment with an aging of over 1 year.
(3) The top five prepayments classified by debtors are as follows:
During the year, the total amount of the top five prepayments classified by debtors at the end of the
period is RMB 1,447,543,803.49, accounts for 77.43% of the total amount of prepayments at the end
of the period.
Percentage of total
Company Name 2023.06.30
prepayments (%)
Tangshan Caofeidian Ganglian Logistics Co., Ltd. 250,891,785.89 13.42
Shougang Group Co., Ltd. 910,421,696.63 48.70
Glencore China Ltd 33,271,464.88 1.78
Tianjin Jintie Xincheng Freight Forwarding Co., Ltd. 74,631,038.39 3.99
Beijing Hegang Steel Trade Co., Ltd. 178,327,817.70 9.54
Total 1,447,543,803.49 77.43
6. Other receivables
Item 2023.06.30 2022.12.31
Dividends receivable 200,000.00 200,000.00
Other receivables 15,539,741.91 12,968,697.56
Total 15,739,741.91 13,168,697.56
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
(1) Dividends receivable
Item 2023.06.30 2022.12.31
Guangzhou Jinghai Shipping Co., Ltd. 200,000.00 200,000.00
Less: bad debt provision -- --
Total 200,000.00 200,000.00
(2) Other receivables
①Disclosed by the ageing of other receivables
Ageing 2023.06.30 2022.12.31
Within 1 year 13,275,910.21 9,880,237.95
1 – 2 years 2,687,241.66 3,309,333.81
2 – 3 years 62,326.00 143,721.00
3 – 4 years 595,903.89 1,074,861.94
4 – 5 years 757,707.90 813,907.90
Over 5 years 4,905,632.01 5,143,256.32
Subtotal 22,284,721.67 20,365,318.92
Less: provision for bad debts 6,744,979.76 7,396,621.36
Total 15,539,741.91 12,968,697.56
②Disclosed by nature of other receivables
2023.06.30
Item Closing
Provision for bad debts Carrying value
balance
Petty cash 1,538,817.44 561,432.72 977,384.72
Deposits 13,132,898.20 935,921.86 12,196,976.34
Due from other companies 5,307,956.43 2,942,575.58 2,365,380.85
Court debit 2,305,049.60 2,305,049.60 --
Total 22,284,721.67 6,744,979.76 15,539,741.91
Continued:
2022.12.31
Item Closing
Provision for bad debts Carrying value
balance
Petty cash 1,550,710.10 483,358.60 1,067,351.50
Deposits 11,399,556.26 864,254.76 10,535,301.50
Due from other companies 5,110,002.96 3,743,958.40 1,366,044.56
Court debit 2,305,049.60 2,305,049.60 --
Total 20,365,318.92 7,396,621.36 12,968,697.56
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
③Provision for bad debts
As at 30 June 2023, Phase I bad debts provision:
Expected credit
Provision for Reason for
Category Book balance loss within 12 Carrying value
bad debts bad debts
months (%)
Assessed bad debt provision
-- -- -- --
individually
Assessed bad debt provision in
13,275,910.21 5.00 663,795.53 12,612,114.68
portfolios
Petty cash and deposits 11,391,319.09 5.00 569,565.93 10,821,753.16
Due from other companies 1,884,591.12 5.00 94,229.60 1,790,361.52
Total 13,275,910.21 5.00 663,795.53 12,612,114.68
As at 30 June 2023, Phase II bad debts provision:
Expected credit Reason
Provision for
Category Book balance loss within the Carrying value for bad
bad debts
lifetime (%) debts
Assessed bad debt provision
-- -- -- --
individually
Assessed bad debt provision in
3,605,870.50 18.81 678,243.27 2,927,627.23
portfolios
Petty cash and deposits 2,808,595.55 16.24 455,987.64 2,352,607.91
Due from other companies 797,274.95 27.88 222,255.63 575,019.32
Total 3,605,870.50 18.81 678,243.27 2,927,627.23
As at 30 June 2023，Phase III bad debts provision:
Expected credit Reason
Provision for
Category Book balance loss over the Carrying value for bad
bad debts
lifetime (%) debts
Assessed bad debt provision
-- -- -- --
individually
People's Court of Muye District,
2,305,049.60 100.00 2,305,049.60 --
Xinxiang City, Henan Province
Petty cash over 5 years 471,801.00 100.00 471,801.00 --
Due from other companies over
2,626,090.36 100.00 2,626,090.36 --
5 years
Total 5,402,940.96 100.00 5,402,940.96 --
As at 31 December 2022, Phase I bad debts provision:
Expected credit
Provision for Reason for
Category Book balance loss within 12 Carrying value
bad debts bad debts
months (%)
Assessed bad debt provision
-- -- -- --
individually
Assessed bad debt provision in
9,880,237.95 5.00 494,011.88 9,386,226.07
portfolios
Petty cash and deposits 9,046,161.66 5.00 452,308.08 8,593,853.58
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Expected credit
Provision for Reason for
Category Book balance loss within 12 Carrying value
bad debts bad debts
months (%)
Due from other companies 834,076.29 5.00 41,703.80 792,372.49
Total 9,880,237.95 5.00 494,011.88 9,386,226.07
As at 31 December 2022, Phase II bad debts provision:
Expected credit Reason
Provision for
Category Book balance loss within the Carrying value for bad
bad debts
lifetime (%) debts
Assessed bad debt provision
-- -- -- --
individually
Assessed bad debt provision in
4,327,962.65 17.22 745,491.16 3,582,471.49
portfolios
Petty cash and deposits 3,532,303.64 14.82 523,504.28 3,008,799.36
Due from other companies 795,659.01 27.90 221,986.88 573,672.13
Total 4,327,962.65 17.22 745,491.16 3,582,471.49
As at 31 December 2022，Phase III bad debts provision:
Expected credit Reason
Provision for
Category Book balance loss over the Carrying value for bad
bad debts
lifetime (%) debts
Assessed bad debt provision
-- -- -- --
individually
People's Court of Muye District,
2,305,049.60 100.00 2,305,049.60 --
Xinxiang City, Henan Province
Petty cash over 5 years 370,720.00 100.00 370,720.00 --
Due from other companies over 5
3,481,348.72 100.00 3,481,348.72 --
years
Total 6,157,118.32 100.00 6,157,118.32 --
④Provision, recovery or reversal of bad debt
Phase I Phase II Phase III
Expected credit loss
Provision for bad debts Expected credit Expected credit loss Total
over the lifetime
loss within 12 over the lifetime (no
(credit impairment
months credit impairment)
occurred)
As at 1 January 2023 494,011.88 745,491.16 6,157,118.32 7,396,621.36
Changes during the year
-- Shift to Phase II -- -- -- --
-- Shift to Phase III -- -- -- --
-- Back to Phase II -- -- -- --
-- Back to Phase I -- -- -- --
Provision 169,783.65 -- -- 169,783.65
Reversal -- 67,247.89 754,177.36 821,425.25
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Phase I Phase II Phase III
Expected credit loss
Provision for bad debts Expected credit Expected credit loss Total
over the lifetime
loss within 12 over the lifetime (no
(credit impairment
months credit impairment)
occurred)
Converse -- -- -- --
Written-off -- -- -- --
Other movements -- -- -- --
As at 30 June 2023 663,795.53 678,243.27 5,402,940.96 6,744,979.76
⑤There is no write-off of provision for bad debts during reporting period.
⑥The top five other receivables classified by debtors are as follows:
Percentage of Closing balance
Company Name Nature Closing balance Ageing total other of bad
receivable (%) debt provision
BMW Brilliance Automotive Security
6,000,000.00 Within 1 year 26.92 300,000.00
Ltd. fund
Lawsuit of Henan Taihang Court
2,305,049.60 over 5 years 10.34 2,305,049.60
Vibrating Machinery Co., Ltd. debit
Beijing Guodian Engineering Security
1,580,044.00 Within 1 year 7.09 79,002.20
Bidding Co., Ltd. fund
Petty cash Petty cash 1,538,817.44 1-5 years 6.91 561,432.72
Due from
Due from other companies
other 2,626,090.36 over 5 years 11.78 2,626,090.36
over 5 years
companies
Total 14,050,001.40 63.04 5,871,574.88
7. Inventories
(1) Classification of inventories
2023.06.30
Item
Book balance Provision for impairment Carrying value
Raw materials 2,800,043,212.87 42,207,819.20 2,757,835,393.67
Finished goods 5,448,703,247.77 196,592,681.92 5,252,110,565.85
Consumables 652,012,956.73 -- 652,012,956.73
Self-made semi-finished goods 3,554,186,129.67 -- 3,554,186,129.67
Total 12,454,945,547.04 238,800,501.12 12,216,145,045.92
Continued:
2022.12.31
Item
Book balance Provision for impairment Carrying value
Raw materials 2,887,646,758.41 42,207,819.20 2,845,438,939.21
Finished goods 5,232,868,448.19 300,694,621.62 4,932,173,826.57
Consumables 605,976,815.09 -- 605,976,815.09
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
2022.12.31
Item
Book balance Provision for impairment Carrying value
Self-made semi-finished goods 3,576,657,167.28 -- 3,576,657,167.28
Total 12,303,149,188.97 342,902,440.82 11,960,246,748.15
(2) Impairment provision for inventories or performance costs
Increase Decrease
Item 2023.01.01 2023.06.30
Reversal or
Provision Others Others
Write-off
Raw materials 42,207,819.20 -- -- -- -- 42,207,819.20
Finished goods 300,694,621.62 329,243,536.55 -- 433,345,476.25 -- 196,592,681.92
Total 342,902,440.82 329,243,536.55 -- 433,345,476.25 -- 238,800,501.12
8. Other current assets
Item 2023.06.30 2022.12.31
Input value added tax 1,456,128.07 2,814,012.14
Input value added tax to be certified 580,373,314.84 655,944,515.37
Prepaid income tax -- 200,264,001.14
Prepaid other taxes 3,486.62 --
Entrusted Loans 182,160,558.22 166,880,103.67
Carbon emission rights assets 40,317.17 40,317.17
Total 764,033,804.92 1,025,942,949.49
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
9. Long-term equity investments
Movements during the year
Investment
Impairment
gains and Adjustment Cash
Company Name 2023.01.01 Other Provision 2023.06.30 at the end
Additional Reduce losses of other dividend
equity for Others of the year
investment investment confirmed comprehensive or profit
movement impairment
under the income declared
equity method
①Joint ventures
Tangshan Guoxing
38,183,246.94 -- -- 3,304,892.38 -- 22,891.98 -- -- -- 41,511,031.30 --
Industrial Co., Ltd.
Tangshan Zhonghong
Carbon Chemical Co., 9,640,303.21 -- -- -6,327,579.29 -- -- -- -- -- 3,312,723.92 --
Ltd.
Tangshan Shougang
Jingtang Xishan Coking 1,098,143,631.04 -- -- 4,352,838.92 -- 3,637,096.12 -- -- -- 1,106,133,566.08 --
Co., Ltd.
Subtotal 1,145,967,181.19 -- -- 1,330,152.01 -- 3,659,988.10 -- -- -- 1,150,957,321.30 --
②Associates
Tangshan Tangcao
312,745,653.19 -- -- -34,510,577.64 -- 58,411.47 -- -- -- 278,293,487.02 --
Railway Co., Ltd.
Tangshan Caofeidian
Dunshi New
67,466,999.44 -- -- -2,223,895.43 -- -- -- -- -- 65,243,104.01 --
Construction Material
Co., Ltd.
Qian'an Sinochem Coal
Chemical Industrial Co., 891,510,510.32 -- -- -129,331,594.55 -- 1,142,891.97 -- -- -- 763,321,807.74 --
Ltd.
Beijing Shouxin Jinyuan
Management Consulting
122,430,402.99 -- -- 80,036.00 -- -- -- -- -- 122,510,438.99 --
Center (Limited
Partnership)
Beijing Dingshengcheng
Packaging Materials 16,830,558.74 -- -- 2,787,741.21 -- -- -- -- -- 19,618,299.95 --
Co., Ltd.
Ningbo Shougang
20,211,004.90 -- -- -530,220.21 -- 47,164.52 -- -- -- 19,727,949.21 --
Zhejin Steel Co., Ltd.
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Movements during the year
Investment
Impairment
gains and Adjustment Cash
Company Name 2023.01.01 Other Provision 2023.06.30 at the end
Additional Reduce losses of other dividend
equity for Others of the year
investment investment confirmed comprehensive or profit
movement impairment
under the income declared
equity method
Guangzhou Jinghai
28,866,411.30 -- -- -408,831.40 -- -- 200,000.00 -- -- 28,257,579.90 --
Shipping Co., Ltd.
Shougang (Qingdao)
58,000,726.24 -- -- 710,439.39 -- -- 700,000.00 -- -- 58,011,165.63 --
Steel Industry Co., Ltd.
Tianjin Shougang Steel
Processing&Distribution 16,693,129.11 -- -- -1,607,969.05 -- -45,872.92 -- -- -- 15,039,287.14 --
Co., Ltd.
Hebei Jingji Industry &
7,828,779.08 -- -- 1,661,178.44 -- -- -- -- -- 9,489,957.52 --
Trading Co., Ltd.
Qian'an Jinyu Shougang
Environmental
35,734,568.85 -- -- 51,747.33 -- -- -- -- -- 35,786,316.18 --
Protection Technology
Co., Ltd.
Subtotal 1,578,318,744.16 -- -- -163,321,945.91 -- 1,202,595.04 900,000.00 -- -- 1,415,299,393.29 --
Total 2,724,285,925.35 -- -- -161,991,793.90 -- 4,862,583.14 900,000.00 -- -- 2,566,256,714.59 --
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
10. Other equity instrument investments
Item 2023.06.30 2022.12.31
Beijing TIEKE Shougang RAILWAY-TECH Co., Ltd. 473,270,672.00 197,880,464.00
Minmetals Special Steel (Dongguan) Co., Ltd. 4,268,422.64 4,103,981.86
Qian'an Shoujia Construction Material Co., Ltd. 6,446,615.23 5,456,139.10
Qian'an PetroChina Kunlun Gas Co., Ltd 19,011,317.67 19,084,152.28
Minmetals Tianwei Steel Co., Ltd. 6,362,810.01 6,241,396.57
Total 509,359,837.55 232,766,133.81
Continued:
Other
comprehensive
Dividend recognized Accumulated Accumulated income
Item Reasons
during the year gain loss transferred
to retained
earnings
Beijing TIEKE
Shougang
3,937,360.00 463,569,472.00 -- --
RAILWAY-TECH Co.,
Ltd.
Minmetals Special
Steel (Dongguan) Co., -- -- 731,577.36 --
Ltd.
Qian'an Shoujia
Construction Material -- -- 16,419,759.77 --
Co., Ltd.
Qian'an PetroChina
3,474,772.80 17,211,317.67 -- --
Kunlun Gas Co., Ltd
Minmetals Tianwei
-- -- 857,189.99 --
Steel Co., Ltd.
Total 7,412,132.80 480,780,789.67 18,008,527.12 --
11. Other non-current financial assets
Item 2023.06.30 2022.12.31
Financial assets measured at fair value and
79,234,007.60 79,234,007.60
recorded into current profit and loss
Continued:
Item 2023.06.30 2022.12.31
Beijing Shouxin Jin'an Equity Investment
79,234,007.60 79,234,007.60
Partnership (Limited Partnership)
Note: The fair value and investment of Beijing Shouxin Jin'an Equity Investment Partnership
(Limited Partnership) refer to Note Ⅶ. 3 and Note Ⅸ.
12. Fixed assets
Item 2023.06.30 2022.12.31
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Fixed assets 90,739,924,821.37 93,331,072,969.17
Fixed assets to be disposed -- --
Total 90,739,924,821.37 93,331,072,969.17
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Fixed assets
①Details of fixed assets
Machinery and Metallurgical
Item Plant and buildings Motor vechiles Electronic equipment Industrial furnace Other tools Total
equipment equipment
Cost：
1. At 1 January 2023 38,934,539,623.18 47,546,349,011.50 2,818,452,661.79 10,305,684,242.67 1,328,119,282.41 62,465,727,447.79 1,126,504,291.87 164,525,376,561.21
2. Increase -386,416,227.78 4,307,241,861.11 805,108,154.30 862,073,181.98 142,370,597.99 -4,489,295,391.44 14,135,219.29 1,255,217,395.45
(1) Purchase 76,305,827.05 22,969,721.20 2,561,890.54 32,142,360.00 -- 39,315,989.00 3,073,136.12 176,368,923.91
(2) Transferred from
-462,722,054.83 4,284,272,139.91 802,546,263.76 829,930,821.98 142,370,597.99 -4,528,611,380.44 11,062,083.17 1,078,848,471.54
construction in progress
3. Decrease 4,136,866.36 17,330,056.88 13,703,944.41 2,006,984.48 -- -- 804,459.94 37,982,312.07
Disposal or retirement 4,136,866.36 17,330,056.88 13,703,944.41 2,006,984.48 -- -- 804,459.94 37,982,312.07
4. At 30 June 2023 38,543,986,529.04 51,836,260,815.73 3,609,856,871.68 11,165,750,440.17 1,470,489,880.40 57,976,432,056.35 1,139,835,051.22 165,742,611,644.59
Accumulated depreciation:
1. At 1 January 2023 12,252,168,847.57 19,574,553,859.62 1,998,285,554.89 6,561,030,235.99 644,940,661.15 29,673,771,570.40 489,552,862.42 71,194,303,592.04
2. Increase 434,723,075.67 3,331,481,941.12 541,084,534.04 918,425,350.14 64,418,526.03 -1,497,341,480.63 49,581,056.99 3,842,373,003.36
(1) Depreciation 574,421,054.78 1,203,822,721.68 81,165,405.43 300,455,515.43 35,778,138.70 1,603,850,180.82 42,879,986.52 3,842,373,003.36
(2) Other increases -139,697,979.11 2,127,659,219.44 459,919,128.61 617,969,834.71 28,640,387.33 -3,101,191,661.45 6,701,070.47 --
3. Decrease 2,263,598.20 16,085,946.79 12,969,454.13 1,906,635.27 -- -- 764,137.79 33,989,772.18
(1) Disposal or retirement 2,263,598.20 16,085,946.79 12,969,454.13 1,906,635.27 -- -- 764,137.79 33,989,772.18
4. At 30 June 2023 12,684,628,325.04 22,889,949,853.95 2,526,400,634.80 7,477,548,950.86 709,359,187.18 28,176,430,089.77 538,369,781.62 75,002,686,823.22
Impaiment
1. At 1 January 2023 -- -- -- -- -- -- -- --
101
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Machinery and Metallurgical
Item Plant and buildings Motor vechiles Electronic equipment Industrial furnace Other tools Total
equipment equipment
2. Increase -- -- -- -- -- -- -- --
3. Decrease -- -- -- -- -- -- -- --
4. At 30 June 2023 -- -- -- -- -- -- -- --
Carrying value
1. 30 June 2023 25,859,358,204.00 28,946,310,961.78 1,083,456,236.88 3,688,201,489.31 761,130,693.22 29,800,001,966.58 601,465,269.60 90,739,924,821.37
2. 1 January 2023 26,682,370,775.61 27,971,795,151.88 820,167,106.90 3,744,654,006.68 683,178,621.26 32,791,955,877.39 636,951,429.45 93,331,072,969.17
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Note: As at 30 June 2023, there is no mortgaged or guaranteed fixed assets.
②As at 30 June 2023, there is no temporarily idle fixed assets.
③As at 30 June 2023, fixed assets leased through operating leases are as follows:
Item Carrying value
Plant and buildings 84,254,394.05
④Fixed assets pending certificates of ownership
Item Carrying value Reasons for pending certificates
Property of Beijing Shougang Cold Rolling
34,888,371.00 Property certificate is in the process
Co., Ltd.
Property of Shougang Jingtang United Iron & To be handled after completing the relevant
7,966,323,665.38
Steel Co., Ltd. procedures of the occupied phase I project land
Property of Beijing Shougang Steel Trading
175,126,409.33 Property certificate is in the process
Investment Management Co., Ltd.
13. Construction in progress
Item 2023.06.30 2022.12.31
Construction in progress 5,642,648,505.80 7,598,541,035.50
Construction materials 68,345,292.89 75,108,817.27
Total 5,710,993,798.69 7,673,649,852.77
(1) Construction in progress
①Details of construction in progress
2023.06.30
Item
Book balance Provision for impairment Carrying value
Jingtang Co. Phase-I project 364,239,395.76 -- 364,239,395.76
Zhixin Co. Oriented phase II project 1,278,700,467.21 -- 1,278,700,467.21
Zhixin Co. High-end heat treatment
636,883,710.86 -- 636,883,710.86
engineering project
Other projects 3,362,824,931.97 -- 3,362,824,931.97
Total 5,642,648,505.80 -- 5,642,648,505.80
Continued:
2022.12.31
Item
Book balance Provision for impairment Carrying value
Jingtang Co. Phase-I project 3,076,233,760.72 -- 3,076,233,760.72
New energy automotive electrical steel
37,653,248.54 -- 37,653,248.54
project
Zhixin Co. Oriented phase II project 1,314,052,905.22 -- 1,314,052,905.22
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Zhixin Co. High-end heat treatment
183,731,602.88 -- 183,731,602.88
engineering project
Other projects 2,986,869,518.14 -- 2,986,869,518.14
Total 7,598,541,035.50 -- 7,598,541,035.50
②The major construction projects in progress are as follows:
Accumulated Capitalized
Transferred to Other % of interest
Project name 2023.01.01 Additions interest Interest during 2023.06.30
fixed assets deduction capitalization
capitalization reporting year
Zhixin Co.
Oriented phase 1,314,052,905.22 -- -- 35,352,438.01 -- -- -- 1,278,700,467.21
II project
Zhixin Co.
High-end heat
treatment 183,731,602.88 453,152,107.98 -- -- -- -- -- 636,883,710.86
engineering
project
Total 1,497,784,508.10 453,152,107.98 -- 35,352,438.01 -- -- -- 1,915,584,178.07
The major construction projects in progress are as follows (continued): (Unit: RMB hundred
million)
The propotion of
Source of
Project name Budget projects investment Progress (%)
fund
account for budget %
Zhixin Co. Oriented phase The devices of the project are being
16.83 88.23 Selfraised
II project installed
Zhixin Co. High-end heat
treatment engineering 19.49 36.93 The project is undergoing civil construction Selfraised
project
③As at 30 June 2023, there is no provision for impairment of construction in progress.
(2) Construction materials
Item 2023.06.30 2022.12.31
Specific materials 2,845,648.30 12,234,976.71
Specific equipments 65,499,644.59 62,873,840.56
Subtotal 68,345,292.89 75,108,817.27
Provision for impairment of construction
-- --
materials
Total 68,345,292.89 75,108,817.27
14. Right-of-use assets
Item Plant and buildings Land use rights Motor vechiles Total
Cost：
1. At 1 January 2023 115,976,725.63 311,888.26 474,802.94 116,763,416.83
2. Increase during the period 133,048.52 -- -- 133,048.52
Adjustment of lease liabilities 133,048.52 -- -- 133,048.52
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Item Plant and buildings Land use rights Motor vechiles Total
3. Decrease during the period 155,885.58 -- -- 155,885.58
4. At 30 June 2023 115,953,888.57 311,888.26 474,802.94 116,740,579.77
Accumulated depreciation
1. At 1 January 2023 33,214,718.55 111,721.20 329,617.63 33,656,057.38
2. Increase during the period 8,181,111.07 27,930.30 108,769.04 8,317,810.41
(1) Provision 8,181,111.07 27,930.30 108,769.04 8,317,810.41
3. Decrease during the period 155,885.58 -- -- 155,885.58
4. At 30 June 2023 41,239,944.04 139,651.50 438,386.67 41,817,982.21
Impaiment
1. At 1 January 2023 -- -- -- --
2. Increase during the period -- -- -- --
3. Decrease during the period -- -- -- --
4. At 30 June 2023 -- -- -- --
Carrying value
1. 30 June 2023 74,713,944.53 172,236.76 36,416.27 74,922,597.56
2. 1 January 2023 82,762,007.08 200,167.06 145,185.31 83,107,359.45
Note: The Company recognizes lease expenses related to short-term leases and leases of low value
assets as shown in Note XIV, 2.
15. Intangible assets
Details of intangible assets
Item Software Land use rights Total
Cost
1. At 1 January 2023 497,475,518.39 4,591,445,210.91 5,088,920,729.30
2. Increase 16,806,990.57 2,265,471,459.74 2,282,278,450.31
(1) Purchase 16,806,990.57 2,265,471,459.74 2,282,278,450.31
3. Decrease -- -- --
4. At 30 June 2023 514,282,508.96 6,856,916,670.65 7,371,199,179.61
Accumulated amortization
1. At 1 January 2023 201,774,900.38 980,238,700.81 1,182,013,601.19
2. Increase 20,909,784.45 71,266,417.79 92,176,202.24
Provision 20,909,784.45 71,266,417.79 92,176,202.24
3. Decrease -- -- --
4. At 30 June 2023 222,684,684.83 1,051,505,118.60 1,274,189,803.43
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Item Software Land use rights Total
Impairment
1. At 1 January 2023 -- -- --
2. Increase -- -- --
3. Decrease -- -- --
4. At 30 June 2023 -- -- --
Carrying value
1. 30 June 2023 291,597,824.13 5,805,411,552.05 6,097,009,376.18
2. 1 January 2023 295,700,618.01 3,611,206,510.10 3,906,907,128.11
Notes for land use rights without completed property rights certificates
Item Carrying value Reason for not completing the property rights certificate
Land of Shougang Qiangang 61,973,257.95 In processing
16. Long-term prepaid expenses
Decrease
Item 2023.1.1 Increase 2023.06.30
Amortization Others
Renovation costs 3,535,748.04 552,675.52 370,395.38 -- 3,718,028.18
17. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets and deferred income tax liabilities without offsetting
2022.12.31 2022.12.31
Item Deductible/taxable Deferred tax Deductible/taxable Deferred tax
temporary differences assets/liabilities temporary differences assets/liabilities
Deferred tax assets：
Asset impairment provision 407,072,431.06 64,481,762.97 505,555,574.09 79,322,751.40
The actual payment amount of
payroll payable less than the 12,112,937.93 1,816,940.69 11,804,882.71 1,770,732.41
withdrawal amount
Defferred income 374,418,442.92 56,537,491.08 376,219,302.71 56,819,612.63
Asset amortization difference 28,499,905.20 4,274,985.78 5,629,387.82 844,408.16
Unrealized internal transaction 134,056,941.98 20,108,541.29 269,210,907.64 40,381,636.15
Joint commissioning cost 302,576,074.82 45,386,411.22 311,745,046.78 46,761,757.02
Differences in amortization of
78,173,854.44 17,156,738.09 3,523,175.04 755,873.27
right-of-use assets
Equity Incentive 4,818,482.88 743,462.46 6,855,496.85 1,052,157.60
Deferred income assets for loss
1,127,823,060.67 169,173,459.10 1,164,313,511.12 174,647,026.67
provision
Subtotal 2,469,552,131.90 379,679,792.68 2,654,857,284.76 402,355,955.31
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
2022.12.31 2022.12.31
Item Deductible/taxable Deferred tax Deductible/taxable Deferred tax
temporary differences assets/liabilities temporary differences assets/liabilities
Deferred tax liabilities：
Joint commissioning cost 1,040,821,323.00 156,123,198.45 1,085,461,580.60 162,819,237.09
Changes in fair value of in other
462,772,262.55 69,415,839.44 186,178,558.81 27,926,783.87
equity instruments investments
New-E Co. disposal subsidiary
Electrical Steel Co. investment 83,212,329.87 20,803,082.47 83,212,329.87 20,803,082.47
income
Fourth quarter equipment
1,892,876,172.32 283,931,425.84 1,938,128,392.15 290,719,258.83
additional deduction
Variance in amortization of lease
74,200,707.69 16,298,973.23 -- --
assets
Subtotal 3,553,882,795.43 546,572,519.43 3,292,980,861.43 502,268,362.26
(2) Details of unrecognized deferred tax assets from deductible temporary differences and
deductible tax losses:
Item 2023.06.30 2022.12.31
Deductible temporary differences 43,608,883.90 56,162,050.68
Deductible tax losses 1,830,270,085.53 2,051,259,102.58
Total 1,873,878,969.43 2,107,421,153.26
(3) Unrecognized deferred tax liabilities from deductible tax losses will expire in the following
years:
Years 2023.06.30 2022.12.31 Note
2022 —— ——
2023 28,607,141.76 33,894,110.96
2024 35,927,468.91 34,063,776.18
2025 18,586,868.98 18,967,253.01
2026 13,437,096.04 14,769,965.09
2027 1,721,450,069.81 1,949,563,997.34
2028 12,261,440.03 --
Total 1,830,270,085.53 2,051,259,102.58
18. Short-term loans
Classification of short-term loans
Item 2023.06.30 2022.12.31
Pledged loans 6,521,200.88 1,090,000.00
Guaranteed loans 4,909,697,916.68 6,907,003,333.35
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Credit loans 23,567,382,771.48 22,671,912,770.04
Total 28,483,601,889.04 29,580,006,103.39
Note: The loan of RMB 6,521,200.88 is pledged by a discounted but unmatured and
non-terminatingly recognized note with a carrying value of RMB 6,521,200.88.
19. Notes payable
Item 2023.06.30 2022.12.31
Commercial acceptance notes 4,106,700,000.00 7,141,510,000.00
Bank acceptances 234,000,000.00 120,000,000.00
Total 4,340,700,000.00 7,261,510,000.00
20. Accounts payable
Item 2023.06.30 2022.12.31
Payables for goods 19,607,497,316.90 17,215,600,362.40
Payables for construction 2,234,477,910.72 2,594,994,121.65
Total 21,841,975,227.62 19,810,594,484.05
Among which, the material trade payables aged over 1 year was as follows:
Company name 2023.06.30 Reason for non-settlement
Beijing Shougang Resources Comprehensive
57,690,426.64 In the execution
Utilization Technology Development Co., Ltd.
Beijing Shougang Special Steel Co., Ltd. 94,949,940.33 In the execution
Ansteel Construction Group Corp.,ltd. 18,878,181.68 In the execution
Ceri Phoenix Industrial Furnace Co., Ltd. 11,891,531.00 In the execution
Chongqing CISDI Thermal & Environmental
20,496,817.59 In the execution
Engineering Co., Ltd.
Total 203,906,897.24
21. Contract liabilities
Item 2023.06.30 2022.12.31
Advance from product sales 5,043,291,760.66 4,508,016,725.74
Less: contractual liabilities included in other
-- --
non-current liabilities
Total 5,043,291,760.66 4,508,016,725.74
22. Payroll and employee benefits payable
Item 2023.1.1 Increase Decrease 2023.06.30
Short-term employee benefits 593,137,177.24 1,971,501,908.56 1,991,407,481.50 573,231,604.30
Post-employment benefits (defined
21,769,252.36 259,324,736.18 244,389,809.58 36,704,178.96
contribution plans)
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Item 2023.1.1 Increase Decrease 2023.06.30
Termination benefits -- 37,489,195.95 37,489,195.95 --
Other retirement benefits due within one year 5,890,000.00 -- -- 5,890,000.00
Total 620,796,429.60 2,268,315,840.69 2,273,286,487.03 615,825,783.26
(1) Short-term employee benefits
Item 2023.1.1 Increase Decrease 2023.06.30
Salaries, bonuses and subsidies 145,764,214.16 1,383,437,754.26 1,453,025,895.37 76,176,073.05
Welfare -- 143,793,184.58 143,793,184.58 --
Social insurance 176,331,327.06 183,951,188.06 157,171,959.62 203,110,555.50
Including:
176,123,301.26 163,469,938.62 137,469,607.94 202,123,631.94
1.Medical insurance
2.Work-related injury insurance 206,530.65 20,436,657.40 19,658,005.87 985,182.18
3.Maternity insurance 1,495.15 44,592.04 44,345.81 1,741.38
Housing fund 52,099.00 186,026,343.36 186,027,148.36 51,294.00
Labor union fee and employee education fee
270,989,537.02 49,877,949.00 26,974,844.27 293,892,641.75
employee education fee
Equity incentive -- 23,286,765.84 23,286,765.84 --
Short-term profit-sharing plan -- -- -- --
Non-monetary benefits -- -- -- --
Other short-term employee benefits -- 1,128,723.46 1,127,683.46 1,040.00
Total 593,137,177.24 1,971,501,908.56 1,991,407,481.50 573,231,604.30
(2) Defined contribution plans
Item 2023.1.1 Increase Decrease 2023.06.30
Post-employment benefits -- -- -- --
Including:
9,654,550.87 250,073,626.25 235,526,098.21 24,202,078.91
1.Pension insurance
2.Unemployment insurance 12,114,701.49 9,251,109.93 8,863,711.37 12,502,100.05
Total 21,769,252.36 259,324,736.18 244,389,809.58 36,704,178.96
(3) Termination benefits
Item 2023.1.1 Increase Decrease 2023.06.30
Compensation for employee resettlement -- 37,489,195.95 37,489,195.95 --
23. Taxes payable
Item 2023.06.30 2022.12.31
Value-added tax 283,331,050.47 112,823,148.09
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Item 2023.06.30 2022.12.31
City construction and maintenance tax 2,137,646.76 939,514.85
Corporate income tax 56,389,506.38 6,615,902.30
Land use tax 293,068.03 440,536.03
Real estate tax 892,734.40 1,014,521.32
Education surcharge 1,547,997.84 681,006.31
Resouorce tax 4,647,712.80 4,912,568.40
Stamp duty 23,833,007.47 33,470,591.03
Individual income tax 1,237,785.18 2,812,207.41
Environment protection tax 9,760,160.00 8,567,976.00
Other taxes 84,826.17 22,444.66
Total 384,155,495.50 172,300,416.40
24. Other payables
Item 2023.06.30 2022.12.31
Dividends payable -- 11,440,046.38
Other payables 981,016,774.08 2,750,379,230.31
Total 981,016,774.08 2,761,819,276.69
(1) Dividends payable
Item 2023.06.30 2022.12.31
Shougang Group Co., Ltd. -- 2,806,049.55
Beijing Shouxin Jinyuan Management -- 6,475,498.15
Consulting Center (Limited Partnership)
Qian'an Jingji Equity Investment Fund -- 2,158,498.68
(Limited Partnership)
Total -- 11,440,046.38
(2) Other payables
Item 2023.06.30 2022.12.31
Deposits 6,345,115.23 6,137,315.23
Guarantee 27,467,019.09 35,705,705.74
Due from Shougang Group 56,575,231.05 56,575,231.05
Due from Shougang Mining Corp. 12,202,944.99 796,194,091.55
Restricted stock repurchase obligations 210,930,850.00 210,930,850.00
Zhixin Co's second round of financing -- 990,787,728.36
Due from other companies 667,495,613.72 654,048,308.38
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Item 2023.06.30 2022.12.31
Total 981,016,774.08 2,750,379,230.31
25. Current portion of non-current liabilities
Item 2023.06.30 2022.12.31
Long-term loans due within one year 2,069,108,695.94 1,480,490,424.42
Bonds payable due within one year 2,578,218,055.63 2,528,468,055.61
Long-term payables due within one year -- 15,781,907.85
Lease liabilities due within one year 15,321,015.53 14,027,634.72
Total 4,662,647,767.10 4,038,768,022.60
(1) Long-term loans due within one year
Item 2023.06.30 2022.12.31
Guaranteed loans 710,869,444.44 613,355,833.34
Credit loans 1,358,239,251.50 867,134,591.08
Total 2,069,108,695.94 1,480,490,424.42
(2) Bonds payable due within one year
Item 2023.06.30 2022.12.31
20 shouqian 01 (Accrued interest) 2,578,218,055.63 2,528,468,055.61
(3) Long-term payables due within one year
Item 2023.06.30 2022.12.31
Finance lease payables -- 15,781,907.85
26. Other current liabilities
Item 2023.06.30 2022.12.31
Short-term bonds payable 1,004,869,863.06 1,006,213,698.66
Tax to be exported 829,487,851.56 724,801,203.37
Backed notes 4,045,717,916.41 6,357,735,008.71
Corporate bonds issued by Shougang 341,109,476.65 --
Total 6,221,185,107.68 8,088,749,910.74
Short-term bonds payable:
Bond name Nominal value Issue date Maturity of bond Issue amount
SCP2 1,000,000,000.00 2022/8/19 248 days 1,000,000,000.00
SCP3 1,000,000,000.00 2023/4/17 186 days 1,000,000,000.00
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Bond name Nominal value Issue date Maturity of bond Issue amount
Subtotal 2,000,000,000.00 2,000,000,000.00
Short-term Bonds Payable (continued):
Interest Amortization
Issued during Repaid in the
Bond name 2023.1.1 accrued per of premium 2023.06.30
current period current period
nominal value and discount
SCP1 1,006,213,698.66 -- 5,201,095.86 -- 1,011,414,794.52 --
SCP2 -- 1,000,000,000.00 4,869,863.06 -- -- 1,004,869,863.06
Total 1,006,213,698.66 1,000,000,000.00 10,070,958.92 -- 1,011,414,794.52 1,004,869,863.06
27. Long-term loans
Range of interest Range of interest
Item 2023.06.30 2022.12.31
rate rate
Guaranteed loans 9,110,869,444.44 4.65% 9,413,355,833.34 4.65%
Credit loans 3,873,189,251.50 2.85%-3.85% 2,661,484,591.08 2.85%-3.85%
Subtotal 12,984,058,695.94 12,074,840,424.42
Less: Long-term loans due
2,069,108,695.94 2.85%-4.65% 1,480,490,424.42 2.85%-4.65%
within one year
Total 10,914,950,000.00 10,594,350,000.00
28. Bonds payable
Item 2023.06.30 2022.12.31
Common bond -- --
Increase or decrease in bonds payable
Bond name Par value Issue date Term to maturity Amount on offer
20 shouqian 01 2,500,000,000.00 2020/9/15 5 years 2,500,000,000.00
Bonds payable (continued):
Current year Accrued Amortisation Current year
Bond name 2023.1.1 interest by 2023.06.30
issuance par value of discount repayment
20 shouqian 01 2,528,468,055.61 -- 49,750,000.02 -- -- 2,578,218,055.63
Less: Long-term
loans due within 2,528,468,055.61 -- -- -- -- 2,578,218,055.63
one year
Total -- -- -- -- -- --
29. Lease liabilities
Item 2023.06.30 2022.12.31
Lease liabilities 79,277,217.59 86,467,471.51
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Less: lease liabilities due within one year 15,321,015.53 14,027,634.72
Total 63,956,202.06 72,439,836.79
Note: The amount of interest expense of lease liabilities in the first half of 2023 is RMB
1,960,102.79, which is included in financial expense - interest costs.
30. Long-term payables
Item 2023.06.30 2022.12.31
Long-term payables -- --
Special payables 2,300,000.00 2,300,000.00
Total 2,300,000.00 2,300,000.00
(1) Long-term payables
Item 2023.06.30 2022.12.31
Finance lease payables -- 15,781,907.85
Less: Long-term payables due within one
-- 15,781,907.85
year
Total -- --
(2) Special payables
Item 2023.1.1 Increase Decrease 2023.06.30 Reason
Research and development funds 2,300,000.00 -- -- 2,300,000.00
31. Long-term employee benefits payables
Item 2023.06.30 2022.12.31
Termination benefits 22,117,269.87 23,239,569.30
Other long-term benefits 64,028,624.73 65,216,081.72
Subtotal 86,145,894.60 88,455,651.02
Less: Long-term Employee benefits
5,890,000.00 5,890,000.00
payables due within one year
Total 80,255,894.60 82,565,651.02
32. Deferred revenue
Item 2023.1.1 Increase Decrease 2023.06.30 Reason
Government grant 472,861,881.90 11,132,200.00 16,021,229.28 467,972,852.62
Note: The government grants which recognized as deferred revenue refer to Note V. 59 government
grants.
33. Other non-current liabilities
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Item 2023.06.30 2022.12.31
Shougang Group advance payment for construction 4,164,819,920.40 4,532,018,467.20
34. Share capital
Changes in current (+/-)
Item 2023.1.1 2023.06.30
Bonus Shares transferred
Shares issued Others Subtotal
issue from reserves
Total amount
of shares
7,819,869,170.00 -- -- -- -- -- 7,819,869,170.00
35. Capital reserve
Item 2023.1.1 Increase Decrease 2023.06.30
Share premium 29,595,169,702.75 -- -- 29,595,169,702.75
Other capital reserve 48,878,848.75 505,037,020.83 -- 553,915,869.58
Total 29,644,048,551.50 505,037,020.83 -- 30,149,085,572.33
Note: the movement of other capital reserve is the change in other equity of joint ventures
recognized by the Company in accordance with shareholding ratio and equity incentive
amortization expense.
36. Treasury shares
Item 2023.1.1 Increase Decrease 2023.06.30
Restricted stock incentive plan 210,930,850.00 -- -- 210,930,850.00
37. Other comprehensive income
Other comprehensive income attributable to the parent company in the balance sheet:
During the period
Item 2023.1.1 Less: Transferred from other 2023.06.30
Attributable to the parent comprehensive income in prior
company after tax periods to retained earnings
during the period
I. Other comprehensive
income which cannot be
reclassified into profits or
158,251,774.94 235,104,648.17 -- 393,356,423.11
losses
Changes in fair value of
other equity instrument 158,251,774.94 235,104,648.17 -- 393,356,423.11
investments
II. Other comprehensive
income to be reclassified -- -- -- --
into profits or losses
Total other
comprehensive incomes
158,251,774.94 235,104,648.17 -- 393,356,423.11
Other comprehensive income attributable to the parent company in the income statement:
During the period
Item
Incurred before Less: Transferred Less: Income tax Less: Attributable to Attributable to
income tax for the from other expenses minority parent company
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period comprehensive shareholders after after tax
income in prior tax
periods to profit or
loss during the
period
I. Other
comprehensive
income which
cannot be
276,593,703.74 -- 41,489,055.57 -- 235,104,648.17
reclassified into
profits or losses
Changes in fair
value of other equity
instrument
276,593,703.74 -- 41,489,055.57 -- 235,104,648.17
investments
II. Other
comprehensive
income to be -- -- -- -- --
reclassified into
profits or losses
Total other
comprehensive 276,593,703.74 -- 41,489,055.57 -- 235,104,648.17
incomes
Note: The net-of-tax amount of other comprehensive income for the period is RMB 235,104,648.17,
Among which, the net-of-tax amount of other comprehensive income attributable to the parent
company is RMB 235,104,648.17; and net-of-tax amount of other comprehensive income
attributable to minority shareholders is RMB 0.00.
38. Special reserve
Item 2023.1.1 Increase Decrease 2023.06.30
Safety fund 31,852,310.79 71,629,935.51 63,583,488.32 39,898,757.98
39. Surplus reserve
Item 2023.1.1 Increase Decrease 2023.06.30
Statutory reserve 1,908,883,208.67 -- -- 1,908,883,208.67
Discretionary surplus
-- -- -- --
reserve
Total 1,908,883,208.67 -- -- 1,908,883,208.67
40. Retained earnings
Appropriation/
Item Current period Prior period
Distribution ratio
Retained earnings at previous year before adjustment 8,595,698,699.52 8,130,868,205.38 --
Adjustment of total retained earnings at previous year
-- -- --
(Increase in “+”, decrease in “-”)
Retained earnings at previous year after adjustment 8,595,698,699.52 8,130,868,205.38
Add: Net profit attributable to shareholders of the company 410,357,394.89 1,795,307,073.34 --
Less: Transfer to statutory surplus reserve -- --
Transfer to discretionary surplus reserve -- --
Common Stock dividends payable -- --
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Dividends payable to other equity holders -- 34,120,631.40
Retained earnings at current year 9,006,056,094.41 9,892,054,647.32
Including: Surplus reserve attributable to shareholders of
-- --
the company extracted by subsidiaries
41. Revenue and cost of sales
(1) Revenue and cost of sales
Current period Prior period
Item
Revenue Cost of sales Revenue Cost of sales
Main business 55,599,122,827.83 52,725,471,888.88 61,279,976,461.63 56,684,778,266.42
Other business 1,768,973,201.54 1,594,681,278.35 1,914,138,985.93 1,612,483,831.57
Total 57,368,096,029.37 54,320,153,167.23 63,194,115,447.56 58,297,262,097.99
(2) Revenue and cost of sales presented as products
Current period Prior period
Item
Revenue Cost of sales Revenue Cost of sales
Main business:
Billet 137,297,135.04 134,524,608.66 302,806,719.26 256,485,057.73
Hot-rolled steel 24,421,717,115.92 23,123,065,070.53 26,182,194,086.24 24,465,345,607.23
Cold-rolled steel 30,041,280,419.47 28,582,863,058.62 33,582,516,334.42 30,921,535,017.99
Other steels 998,828,157.40 885,019,151.07 1,212,459,321.71 1,041,412,583.47
Subtotal 55,599,122,827.83 52,725,471,888.88 61,279,976,461.63 56,684,778,266.42
Other business
Power 735,603,333.93 794,413,867.32 751,215,118.93 735,503,944.60
Solid waste 637,465,489.28 560,603,496.48 742,703,360.89 656,634,462.05
Others 395,904,378.33 239,663,914.55 420,220,506.11 220,345,424.92
Subtotal 1,768,973,201.54 1,594,681,278.35 1,914,138,985.93 1,612,483,831.57
Total 57,368,096,029.37 54,320,153,167.23 63,194,115,447.56 58,297,262,097.99
(3) Breakdown of revenue information
Item Current period
Revenue from main business 55,599,122,827.83
Including: recognised at a certain point in time 55,599,122,827.83
recognised during a certain period of time --
Revenue from other business 1,768,973,201.54
Total 57,368,096,029.37
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
As of 30 June 2023, the amount of revenue corresponding to the performance obligations that
the company has signed but not yet fulfilled is RMB 4,954.9508 million. The Company expects
to recognize all the revenue in 2023.
42. Taxes and surcharges
Item Current period Prior period
Environmental protection tax 18,343,720.18 15,908,172.94
Urban maintenance and construction tax 40,652,211.96 77,967,892.43
Education surcharge 29,679,818.99 56,726,117.52
Resources duty 20,832,075.60 20,250,120.20
Property tax 99,488,568.55 98,695,510.19
Land usage tax 111,002,226.40 110,812,386.29
Vehicle and vessel usage tax 40,334.86 42,404.04
Stamp duty 63,765,765.74 76,282,142.98
Other taxes 120,608.80 34,734.51
Total 383,925,331.08 456,719,481.10
Note: The provision and payment standards of taxes and surcharges refer to Note IV. Taxation.
43. Selling and distribution expenses
Item Current period Prior period
Staff costs 79,951,366.28 93,930,363.62
Depreciation and amortization 50,936.58 56,094.74
Other regualr expenses 28,674,247.02 16,695,031.78
Total 108,676,549.88 110,681,490.14
44. General and administrative expenses
Item Current period Prior period
Staff costs 310,695,125.00 326,037,150.47
Depreciation and amortization 171,588,633.63 161,324,338.37
Other regular expenses 97,193,253.08 101,702,896.39
Total 579,477,011.71 589,064,385.23
45. Research and development expenses
Item Current period Prior period
Staff costs 158,852,822.87 311,623,960.32
Other regular expenses 37,283,180.82 16,893,405.56
Total 196,136,003.69 328,517,365.88
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
46. Financial expenses
Item Current period Prior period
Interest costs 792,670,794.80 962,553,311.97
Including: Interest expenses on lease liabilities 1,960,102.79 2,690,554.84
Less: interest capitalized -- 10,110,416.67
Interest expenses 792,670,794.80 952,442,895.30
Less:interest income 54,953,200.51 59,554,515.51
Discount on notes acceptance 41,324,051.62 10,534,443.56
Exchange losses and gains -5,170,055.53 -11,231,904.59
Bank charges and others -2,981,596.08 1,954,237.44
Total 770,889,994.30 894,145,156.20
47. Other income
Item Current period Prior period
Related to assets 15,981,229.28 9,688,324.41
Related to income 10,854,823.68 8,716,309.36
Value added tax deduction 148,220.60 271,465.97
Tax refund 1,570,586.42 2,144,900.53
Total 28,554,859.98 20,821,000.27
Note: (1) The details of government grants refer to Note V. 59 Government grants.
(2) The specific reasons for government grants recognized as recurring gains or losses, please refer
to Note XVI. 1.
48. Investment income
Item Current period Prior period
Investment income from long-term equity investments
-161,991,793.90 -28,953,471.03
under the equity method
Investment income on disposal of long-term equity
-- --
investments
Dividend from other equity instruments investments 7,412,132.80 2,812,400.00
Interest income from entrusted loans 5,922,896.67 5,488,952.23
Others 1,139,694.44 --
Total -147,517,069.99 -20,652,118.80
49. Gains from changes in fair value
Sources of gains from changes in fair value Current period Prior period
Other non-current financial assets: designated as measured -- --
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
at fair value and whose changes are recorded in current
profit or loss
50. Credit impairment losses (loss in “-”)
Item Current period Prior period
Provision for bad debts of notes receivable 1,506,988.86 -223,343.36
Provision for bad debts of accounts receivable 4,894,423.95 7,238,831.57
Provision for bad debts of financing receivable -567,310.56 -630,726.77
Provision for bad debts of other receivables 651,641.60 1,220,925.33
Total 6,485,743.85 7,605,686.77
51. Impairment losses on assets (loss in “-”)
Item Current period Prior period
Provision for invertory impairment -329,243,536.55 -105,263,662.32
52. Gains on disposal of assets
Item Current period Prior period
Gains from disposal of fixed assets (loss in “-”) 169,700.65 -200,808.44
Gains from disposal of intangible assets (loss in “-”) -- --
Total 169,700.65 -200,808.44
53. Non-operating income
Recognised as
Item Current period Prior period non-recurring gains or
losses in 2023
Gains on disposal of assets s 740,746.71 1,253,691.98 740,746.71
Compensation payments 831,077.04 42,466.00 831,077.04
Others 2,209,318.60 947,185.72 2,209,318.60
Total 3,781,142.35 2,243,343.70 3,781,142.35
54. Non-operating expenses
Recognised as non-recurri
Item Current period Prior period
ng gains or losses in 2023
Losses on disposal of assets 3,145,406.85 13,808,806.33 3,145,406.85
Compensation and penalty 1,493,322.32 -- 1,493,322.32
Others 390,101.11 -- 390,101.11
Donation -- 978,613.90 --
Total 5,028,830.28 14,787,420.23 5,028,830.28
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55. Income tax expenses
(1) Details of income tax expenses
Item Current period Prior period
Current tax in accordance with tax laws and related
52,297,204.81 380,151,992.76
regulations
Deffered income tax expenses 40,869,725.70 -14,007,007.78
Total 93,166,930.51 366,144,984.98
(2) Reconciliation between income tax expenses and profit before income tax is as follows:
Item Current period Prior period
Profit before tax 566,039,981.49 2,407,491,491.97
Tax at the applicable tax rate of 15% 84,905,997.22 361,123,723.80
Taxation effect of different tax rates of subsidiaries 4,330,222.62 4,988,095.44
Adjustment of income tax in the prior year 5,707,925.74 -21,330.95
Share of profit or loss of joint ventures and associates
24,310,774.48 4,823,143.55
under the equity method
Income not subject to tax（expressed in“-”） -1,111,819.92 -421,860.00
Non-deductible costs, expenses and losses -1,024,312.98 1,375,729.75
Taxation effect of the change in the applicable tax rate on
-- --
the beginning disclosure of the deffered income tax
Taxation effect of utilizing previous unrecognized tax
losses and deductible temporary differences (expressed in -24,468,624.78 -13,115,011.55
“-”)
Taxation effect of unrecognized tax losses and deductible
2,034,667.84 7,392,494.94
temporary differences
Taxation effect of research and development expenses
-1,517,899.71 --
(expressed in “-”)
Others -- --
Income tax expenses 93,166,930.51 366,144,984.98
56. Notes to cash flow statement
(1) Proceeds from other operating activities
Item Current period Prior period
Government grants received 23,557,610.10 52,635,019.89
Security deposit received 113,500.00 2,914,958.17
Other non-operating income received 2,584,035.20 989,651.72
Other receivables received 3,018,568.85 --
Restricted funds received 658,318,672.38 702,663,291.78
Total 687,592,386.53 759,202,921.56
(2) Payments for other operating activities
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Item Current period Prior period
Expenses paid 239,443,701.70 192,888,072.40
Non-operating expenses paid 1,883,423.43 978,660.73
Other payable paid -- 2,243,026.54
Restricted funds paid 8,445,841.94 --
Total 249,772,967.07 196,109,759.67
(3) Proceeds from other investing activities
Item Current period Prior period
Interest income 55,091,892.43 59,811,342.73
(4) Payment for other financing activities
Item Current period Prior period
Financial commissions 544,051.79 614,594.34
Paying back the borrowings from Shougang Group 300,000,000.00 146,870,077.89
Lease payments 9,283,405.23 9,374,237.24
Non-public offering fees paid -- 605,668.13
Cash retained by the continuing company 887,314.66 --
Total 310,714,771.68 157,464,577.60
57. Supplements to statement of cash flows
(1) Supplementary information
Supplementary information Current period Prior period
1. Reconciliation of net profit to net cash flows from
operating activities:
Net profit 472,873,050.98 2,041,346,506.99
Add: Impairment losses on assets 329,243,536.55 105,263,662.32
Credit impairment losses -6,485,743.85 -7,605,686.77
Depreciation of fixed assets 3,842,373,003.36 3,802,519,336.62
Depreciation of right-of-use assets 8,317,810.41 8,523,888.66
Amortization of intangible assets 92,176,202.24 68,968,045.19
Amortizaiton of long-term deffered expenses 370,395.38 270,513.76
Losses on disposal of fixed assets, intangible assets and
-169,700.65 200,808.44
other long-term assets (Gains as in “-”)
Losses on written-off fixed assets (Gains as in “-”) 2,404,660.14 12,555,114.35
Losses on fair value changes (Gain as in “-”) -- --
Financial expenses (Income as in “-”) 770,889,994.30 894,145,156.20
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Supplementary information Current period Prior period
Investment losses (Income as in “-”) 147,517,069.99 20,652,118.80
Decrease in deferred tax assets
19,037,317.48 -7,310,969.14
(Increase as in “-”)
Increase in deferred tax liabilities
6,453,946.75 -6,696,038.64
(Decrease as in “-”)
Decrease in inventories (Increase as in “-”) -580,497,435.31 -1,530,410,940.95
Decrease in receivables from
-3,395,064,493.78 -2,026,306,571.42
operating activities (Increase as in “-”)
Increase in payables from
-2,046,430,080.78 -1,713,810,484.02
operating activities (Decrease as in “-”)
Others 692,541,544.39 755,659,694.90
Net cash flow from operating activities 355,551,077.60 2,417,964,155.29
2. Significant non-cash payments for investing and
financing activities:
Conversion of debt into capital -- --
Convertible bonds due within one year -- --
Newly added right-of-use assets in the current period -- --
3. Net changes in cash and cash equivalents:
Closing balance of cash 7,015,305,370.62 6,899,770,382.55
Less: Opening balance of cash 8,329,215,003.68 8,535,871,373.08
Add: Closing balance of cash equivalents -- --
Less: Opening balance of cash equivalents -- --
Net increase in cash and cash equivalents -1,313,909,633.06 -1,636,100,990.53
Note: The amount of endorsement and transfer of acceptance notes received from goods sales of the
Company is RMB 34,429,184,800.
(2) Components of cash and cash equivalents
Item 2023.06.30 2022.12.31
1. Cash 7,015,305,370.62 8,329,215,003.68
Including: Cash on hand 21,492.00 23,581.90
Balances in banks without restriction 7,015,283,865.88 8,329,191,409.04
Other monetary funds without restriction 12.74 12.74
2. Cash equivalents -- --
Including: bonds investment due within three months -- --
3. Closing balance of cash and cash equivalents 7,015,305,370.62 8,329,215,003.68
Including: restricted cash and cash equivalents from the
-- --
parent company or its subsidiaries
58. Assets with restricted ownership or use rights
Item 2023.06.30 Restricted reasons
122
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Security deposits, fixed term
Cash and cash balances 482,089,076.86
deposits
Notes receivable 87,759,217.36 Pledge billing
Accounts receivable 44,772,339.34 Pledge billing
Total 614,620,633.56
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59. Government grants
(1) Government grants recognized as deferred income and subsequently measured via gross method.
Transfer to Item recognized in Related to assets/
Item Type 2023.1.1 Increase Other changes 2023.06.30
profit or loss income statement Related to income
Financial
Discount funds for imported equipments 12,106,230.11 -- 614,555.28 -- 11,491,674.83 Other income Related to assets
appropriation
Government grants for engineering informationization project (Qian'an Financial
275,000.28 -- 49,999.98 -- 225,000.30 Other income Related to assets
Iron and Steel, Cold-R Co.) appropriation
Government grants for energy central project from the Ministry of Financial
1,999,999.88 -- 500,000.00 -- 1,499,999.88 Other income Related to assets
Industry and Information Technology of the People’s Republic of China appropriation
Financial
Special government grants from the Finance Bureau of Qian'an 4,139,130.42 -- 121,739.16 -- 4,017,391.26 Other income Related to assets
appropriation
Financial
Government grants for hot-rolled steel strip TMCP project 1,263,157.88 -- 52,631.58 -- 1,210,526.30 Other income Related to assets
appropriation
Government grants for dedusting system upgrading project (Qian'an Financial
24,473,684.32 -- 815,789.46 -- 23,657,894.86 Other income Related to assets
Iron and Steel) appropriation
Financial
Government grants for advanced sewage treatment 4,819,629.56 -- 171,111.12 -- 4,648,518.44 Other income Related to assets
appropriation
Special government grants for denitration engineering from the Hebei Financial
490,000.00 -- 122,500.00 -- 367,500.00 Other income Related to assets
Provincial Finance Department appropriation
Government grants for online environmental monitoring project from Financial
2,500,000.00 -- 250,000.00 -- 2,250,000.00 Other income Related to assets
the Finance Bureau of Caofeidian appropriation
The steelmaking technology and facilities demonstration project through
Financial
carbon dioxide-oxygen mixed injection, funded by University of 3,719,298.24 -- 105,263.16 -- 3,614,035.08 Other income Related to assets
appropriation
Science and Technology Beijing
Financial
National funds for the national 863 project 556,400.00 -- 139,100.00 -- 417,300.00 Other income Related to assets
appropriation
Financial
Government grants for Phase II seawater dsalination project 16,842,105.32 -- 526,315.78 -- 16,315,789.54 Other income Related to assets
appropriation
Financial
Government grants for cold-rolled intelligent manufacturing project 21,224,552.64 2,030,000.00 1,490,657.00 -- 21,763,895.64 Other income Related to assets
appropriation
Financial
Government grants for the desulfurization of pelletizing flue gas 20,805,473.66 -- 743,052.64 -- 20,062,421.02 Other income Related to assets
appropriation
Financial
Environmental protection government grants for closing limestone yards 1,600,000.00 -- 40,000.00 -- 1,560,000.00 Other income Related to assets
appropriation
Government grants for energy-saving incentive for No.3 hydrogen Financial
950,305.21 -- 33,939.48 -- 916,365.73 Other income Related to assets
generator appropriation
Government grants for cold rolling operation department aluminized Financial
2,873,684.17 -- 95,789.48 -- 2,777,894.69 Other income Related to assets
silicon high strength steel automotive plate renovation project appropriation
Government grants for cold rolling operation department high strength Financial
11,450,943.40 -- 336,792.44 -- 11,114,150.96 Other income Related to assets
steel 18 roll single stand project appropriation
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Transfer to Item recognized in Related to assets/
Item Type 2023.1.1 Increase Other changes 2023.06.30
profit or loss income statement Related to income
Government grants for the operation-control system of Financial
19,772,121.20 -- 1,235,757.60 -- 18,536,363.60 Other income Related to assets
production-marketing integration appropriation
Government grants for the specialized production line project of Financial
84,210,526.36 -- 2,631,578.94 -- 81,578,947.42 Other income Related to assets
Zinc-plated high-strengthen auto sheet appropriation
Government grants for reforming of sinter desulfurization and Financial
24,210,526.34 -- 789,473.68 -- 23,421,052.66 Other income Related to assets
denitrification appropriation
Financial
Government grants for thin slab casting and rolling engineering 5,179,642.86 187,500.00 142,857.14 -- 5,224,285.72 Other income Related to assets
appropriation
Government grants for reform project of reducing oxynitride Financial
5,830,263.31 -- 165,789.42 -- 5,664,473.89 Other income Related to assets
concentration in emissed flue gas from annealing furnace appropriation
Financial
Government grants for industrial mechanism model base 4,800,000.00 -- -- -- 4,800,000.00 Other income Related to assets
appropriation
Financial
Government grants for 10,000 tons/d desalination project 7,963,157.91 -- 234,210.52 -- 7,728,947.39 Other income Related to assets
appropriation
Financial
Government grants for sintering waste heat power generation project 19,336,283.19 -- 537,118.96 -- 18,799,164.23 Other income Related to assets
appropriation
Government grants for comprehensive optimization and upgrading
Financial
project of hot blast furnace system in Phase I of ironmaking Operation 23,683,382.96 -- 657,871.74 -- 23,025,511.22 Other income Related to assets
appropriation
Department
Government grants for energy conservation and emission reduction Financial
13,429,293.94 1,500,000.00 382,854.87 -- 14,546,439.07 Other income Related to assets
optimization and improvement projects appropriation
Financial
Government grants for Zinc containing solid waste disposal project 4,878,640.78 -- 145,631.06 -- 4,733,009.72 Other income Related to assets
appropriation
Financial
Government grants for high-tech industry development projects 7,000,000.00 -- -- -- 7,000,000.00 Other income Related to assets
appropriation
Financial
Government grants for new energy automotive electrical steel project 78,890,971.68 7,000,000.00 2,178,973.92 -- 83,711,997.76 Other income Related to assets
appropriation
Financial
Government grants for high performance oriented silicon steel project 19,640,000.00 -- -- -- 19,640,000.00 Other income Related to assets
appropriation
Financial
Other government grants related to assets 21,907,476.28 14,700.00 669,874.87 -- 21,252,301.41 Other income Related to assets
appropriation
Financial
Other government grants related to income 40,000.00 400,000.00 40,000.00 -- 400,000.00 Other income Related to income
appropriation
Total 472,861,881.90 11,132,200.00 16,021,229.28 -- 467,972,852.62
(2) Government grants directly recorded as profit or loss for the current period and measured via gross method.
Amount recognised in profit or loss in Amount recognised in profit or lossin Item recognized in Related to assets/
Item Type
current period prior period income statement Related to income
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Government grants for steady post Financial appropriation 159,769.69 3,803,072.64 Other income Related to income
Other government grants related to income Financial appropriation 10,695,053.99 4,913,236.72 Other income Related to income
Total 10,854,823.68 8,716,309.36
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
VI. Changes in the scope of consolidation
On April 25, 2023, the Company's subsidiary, Beijing Shougang New Energy
Automotive Material Technology Co., Ltd., was split into Beijing Shougang New
Energy Automotive Material Technology Co., Ltd. (the "Surviving Company") and
Beijing Shougang New Energy Material Technology Co., Ltd. (the "New Company")
on a continuing basis.
The registered capital and paid-in capital of Beijing Shougang New Energy
Automotive Material Technology Co., Ltd. before the division were both 980 million
yuan, of which 45.9% was held by Beijing Shougang Co., Ltd. (" Shougang Shares ")
and 30.6% was held by Beijing Shougang Xinjinyuan Management Consulting Center
(Limited Partnership) (" Shougang Xinjinyuan "). Shougang Group Co., Ltd. ("
Shougang Group ") holds 13.3%, and Qian 'an Beijing-Hebei Equity Investment Fund
(Limited Partnership) (" Qian 'an Fund ") holds 10.2%.
After the division, the registered capital and paid-in capital of Beijing Shougang New
Energy Automobile Material Technology Co., Ltd. (surviving company) are RMB 230
million, and the shareholders are Shougang Group (holding 56.5217%) and Qian 'an
Fund (holding 43.4783%); The registered capital and share capital of Beijing
Shougang New Energy Material Technology Co., Ltd. (newly established company)
are both RMB 750 million , and the shareholders are Shougang Shares (60%) and
Shouxin Jinyuan (40%).
After this division, the Company will continue to merge Beijing Shougang New
Energy Material Technology Co., LTD. (a new company) with the shareholding ratio
of 60%.
VII. Interests in other entities
1. Interests in subsidiaries
(1) Composition of the Company
Main Operation Shareholding ratio (%) Acquisition
Subsidiary Registration place Business nature
place Directly Indirectly method
Business
Shougang Jingtang United Production and combination
Tangshan, PRC Tangshan, PRC 70.18 29.82
Iron & Steel Co., Ltd. sales under common
control
Beijing Shougang Cold Production and Establish or
Beijing, PRC Beijing, PRC 70.28 --
Rolling Co., Ltd. sales investment, etc.
Business
Qian'an Shougang
Consulting combination
Metallurgical Technology Qian’an, PRC Qian’an, PRC 100.00 --
service under common
Co., Ltd.
control
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Main Operation Shareholding ratio (%) Acquisition
Subsidiary Registration place Business nature
place Directly Indirectly method
Shougang Zhixin Qian'an
Production and Establish or
Electromagnetic Materials Qian’an, PRC Qian’an, PRC 68.03 6.15
sales investment, etc.
Co., Ltd.
Beijing Shougang New
Production and Establish or
Energy Material Beijing, PRC Beijing, PRC 60 --
sales investment, etc.
Technology Co., Ltd.
Business
Beijing Shougang Steel
Production and combination
Trading Investment Beijing, PRC Beijing, PRC 100.00 --
sales under common
Management Co., Ltd.
control
(2) Significant non-wholly owned subsidiaries
Unit：RMB
Net profit/ (loss) Dividends declared and
Non-controlling
Proportion of minority attributable to distributed to
Subsidiary interests at the end of
shareholders (%) non-controlling interests non-controlling interests
reporting period
in reporting period in reporting period
Beijing Shougang
29.72 304,093.71 -- -315,256,525.16
Cold Rolling Co., Ltd.
Shougang Zhixin
Qian'an
25.82 53,828,968.42 125,600,566.77 3,596,332,377.60
Electromagnetic
Materials Co., Ltd.
(3) Major financial information of significant non-wholly owned subsidiaries
Unit：RMB
2023.06.30
Subsidiary Non-current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liabilities
Beijing
Shougang
2,134,974,093.87 3,734,063,073.33 5,869,037,167.20 2,722,985,473.09 4,202,976,973.66 6,925,962,446.75
Cold Rolling
Co., Ltd.
Shougang
Zhixin
Qian'an 5,606,099,101.37 15,439,866,166.90 21,045,965,268.27 6,830,760,323.39 334,318,803.97 7,165,079,127.36
Electromagnet
ic Materials
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Co., Ltd.
Continued (1):
2022.12.31
Subsidiary Non-current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liabilities
Beijing
Shougang Cold
2,317,199,255.15 3,836,449,761.31 6,153,649,016.46 2,646,502,899.97 4,570,607,323.65 7,217,110,223.62
Rolling Co.,
Ltd.
Shougang
Zhixin Qian'an
Electromagnetic 5,760,507,592.72 15,459,717,661.10 21,220,225,253.82 7,660,663,373.94 1,401,952,326.63 9,062,615,700.57
Materials Co.,
Ltd.
Continued (2):
Current period Prior period
Total Total
Subsidiary Cash flow from Cash flow from
Operating revenue Net profit comprehensive Operating revenue Net profit comprehensive
operating activities operating activities
income income
Beijing
Shougang
5,133,807,057.85 1,023,195.52 1,023,195.52 218,642,621.85 6,016,545,773.96 61,520,529.94 61,520,529.94 32,581,875.82
Cold Rolling
Co., Ltd.
Shougang
Zhixin
Qian'an
7,253,294,653.45 211,419,481.66 211,419,481.66 485,506,003.09 6,767,049,388.20 646,719,729.82 646,719,729.82 1,042,619,075.80
Electromagne
tic Materials
Co., Ltd.
2. Interests in joint ventures and associates
(1) Significant joint ventures and associates
Shareholding
Joint ventures Main operating Place of Business Accounting
proportion (%)
or associates place registration nature method
Direct Indirect
①Jiont ventures
Tangshan Guoxing Industrial Co., Ltd. Tangshan, PRC Tangshan, PRC Manufacturing 50.00 Equity method
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Shareholding
Joint ventures Main operating Place of Business Accounting
proportion (%)
or associates place registration nature method
Direct Indirect
Tangshan Zhonghong Carbon Chemical
Tangshan, PRC Tangshan, PRC Chemical 50.00 Equity method
Co., Ltd.
Tangshan Shougang Jingtang Xishan
Tangshan, PRC Tangshan, PRC Coking 50.00 Equity method
Coking Co., Ltd.
②Associates
Tangshan Tangcao Railway Co., Ltd. Tangshan, PRC Tangshan, PRC Transportation 16.19 Equity method
Tangshan Caofeidian Dunshi New Building
Tangshan, PRC Tangshan, PRC 25.00 Equity method
Construction Material Co., Ltd. Material
Qian'an Sinochem Coal Chemical
Qian’an, PRC Qian’an, PRC Coking 49.82 Equity method
Industrial Co., Ltd.
Beijing Shouxin Jinyuan Management
Beijing, PRC Beijing, PRC Investment 20.00 Equity method
Consulting Center (Limited Partnership)
Beijing Dingshengcheng Packaging
Beijing, PRC Beijing, PRC Manufacturing 45.00 Equity method
Materials Co., Ltd.
Ningbo Shougang Zhejin Steel Co., Ltd. Ningbo, PRC Ningbo, PRC Manufacturing 40.00 Equity method
Guangzhou,
Guangzhou Jinghai Shipping Co., Ltd. Guangzhou, PRC Transportation 20.00 Equity method
PRC
Shougang (Qingdao) Steel Industry Co.,
Qingdao, PRC Qingdao, PRC Manufacturing 35.00 Equity method
Ltd.
Tianjin Shougang Steel
Tianjin, PRC Tianjin, PRC Manufacturing 35.00 Equity method
Processing&Distribution Co., Ltd.
Hebei Jingji Industry & Trading Co., Shijiazhuang,
Shijiazhuang, PRC Manufacturing 35.71 Equity method
Ltd. PRC
Qian'an Jinyu Shougang Environmental Building
Tianjin, PRC Tianjin, PRC 35.00 Equity method
Protection Technology Co., Ltd. Material
(2) Primary financial information of significant joint ventures
Tangshan Guoxing Industrial Co., Tangshan Zhonghong Carbon Tangshan Shougang Jingtang
Item Ltd. Chemical Co., Ltd. Xishan Coking Co., Ltd.
2023.06.30 2022.12.311 2023.06.30 2022.12.31 2023.06.30 2022.12.31
Current assets 84,601,136.61 81,326,897.38 19,532,576.05 4,453,756.17 2,310,250,784.60 2,203,316,115.22
Including： Cash and
9,604,863.62 15,459,879.44 19,232,576.05 4,153,756.17 944,009,086.92 909,643,194.30
cash equivalents
Non-current assets 71,766,473.82 76,981,144.98 598,368,186.00 595,492,113.45 1,268,213,780.58 1,384,560,026.25
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Tangshan Guoxing Industrial Co., Tangshan Zhonghong Carbon Tangshan Shougang Jingtang
Item Ltd. Chemical Co., Ltd. Xishan Coking Co., Ltd.
2023.06.30 2022.12.311 2023.06.30 2022.12.31 2023.06.30 2022.12.31
Total assets 156,367,610.43 158,308,042.36 617,900,762.05 599,945,869.62 3,578,464,565.18 3,587,876,141.47
Current liabilities 66,808,454.65 75,404,455.29 611,275,314.21 580,665,263.21 1,359,522,433.00 1,384,913,879.38
Non-current liabilities 6,537,093.21 6,537,093.21 -- -- 6,675,000.00 6,675,000.00
Total liabilities 73,345,547.86 81,941,548.50 611,275,314.21 580,665,263.21 1,366,197,433.00 1,391,588,879.38
Net assets 83,022,062.57 76,366,493.86 6,625,447.84 19,280,606.41 2,212,267,132.18 2,196,287,262.09
Including:
Non-controlling -- -- -- --
interests
Equity attributable to
shareholders of the 83,022,062.57 76,366,493.86 6,625,447.84 19,280,606.41 2,212,267,132.18 2,196,287,262.09
company
Net assets calculated by
41,511,031.30 38,183,246.94 3,312,723.92 9,640,303.21 1,106,133,566.08 1,098,143,631.04
shareholding proportion
Adjustment
Including: Goodwill -- -- -- -- -- --
Unrealized profit or
loss of internal -- -- -- -- -- --
transaction
Impairment -- -- -- -- -- --
Others -- -- -- -- -- --
Carrying value of
equity investment in 41,511,031.30 38,183,246.94 3,312,723.92 9,640,303.21 1,106,133,566.08 1,098,143,631.04
the joint venture
Fair value of equity
investment with quoted -- -- -- -- -- --
market price
Continued:
Tangshan Guoxing Industrial Co., Tangshan Zhonghong Carbon Tangshan Shougang Jingtang Xishan
Item Ltd. Chemical Co., Ltd. Coking Co., Ltd.
Current period Prior period Current period Prior period Current period Prior period
Operating revenue 69,936,812.72 79,412,274.03 -- -- 6,192,335,209.86 7,025,126,606.79
Financial expenses -7,983.14 159,412.06 12,636,372.10 11,588,169.37 10,483,064.19 16,444,053.05
Income tax expense 2,463,490.17 3,288,633.87 -- -- 16,748,316.30 -7,453,324.89
Net profit 6,609,784.74 6,837,122.31 -12,655,158.57 -11,607,339.67 8,705,677.85 45,903,466.36
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Tangshan Guoxing Industrial Co., Tangshan Zhonghong Carbon Tangshan Shougang Jingtang Xishan
Item Ltd. Chemical Co., Ltd. Coking Co., Ltd.
Current period Prior period Current period Prior period Current period Prior period
Net profit from
discontinuing -- -- -- -- -- --
operations
Other
comprehensive -- -- -- -- -- --
income
Total comprehensive
6,609,784.74 6,837,122.31 -12,655,158.57 -11,607,339.67 8,705,677.85 45,903,466.36
income
Dividends received
-- -- -- -- -- 23,000,000.00
from joint venture
(3) Primary financial information of significant associates
Tangshan Tangcao Railway Co., Tangshan Caofeidian Dunshi New Qian'an Sinochem Coal Chemical
Ltd. Construction Material Co., Ltd. Industrial Co., Ltd.
Item
2023.06.30 2022.12.311 2023.06.30 2022.12.31 2023.06.30 2022.12.31
Current assets 16,119,048.38 37,615,636.69 81,848,474.01 77,330,625.86 1,799,242,859.81 2,071,780,230.13
Non-current assets 8,068,928,508.03 8,175,281,488.59 213,359,169.31 224,215,514.07 2,407,583,722.52 2,457,397,455.41
Total assets 8,085,047,556.41 8,212,897,125.28 295,207,643.32 301,546,139.93 4,206,826,582.33 4,529,177,685.54
Current liabilities 2,116,515,587.41 1,026,481,331.40 34,235,227.30 31,678,142.16 2,663,953,364.33 2,727,774,901.17
Non-current
4,249,609,875.00 5,254,694,650.00 -- -- 19,172,608.87 20,417,377.09
liabilities
Total liabilities 6,366,125,462.41 6,281,175,981.40 34,235,227.30 31,678,142.16 2,683,125,973.20 2,748,192,278.26
Net assets 1,718,922,094.00 1,931,721,143.88 260,972,416.02 269,867,997.77 1,523,700,609.13 1,780,985,407.28
Including:
Non-controlling -- -- -- -- -- --
interests
Equity attributable
to shareholders of 1,718,922,094.00 1,931,721,143.88 260,972,416.02 269,867,997.77 1,523,700,609.13 1,780,985,407.28
the company
Net assets
calculated by
278,293,487.02 312,745,653.19 65,243,104.01 67,466,999.44 759,174,387.53 887,363,090.11
shareholding
proportion
Adjustment
Including:
-- -- -- -- 4,147,420.21 4,147,420.21
Goodwill
Unrealized profit
or loss of internal -- -- -- -- -- --
transaction
Impairment -- -- -- -- -- --
Others -- -- -- -- -- --
Carrying value of
equity investment 278,293,487.02 312,745,653.19 65,243,104.01 67,466,999.44 763,321,807.74 891,510,510.32
in the associates
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Tangshan Tangcao Railway Co., Tangshan Caofeidian Dunshi New Qian'an Sinochem Coal Chemical
Ltd. Construction Material Co., Ltd. Industrial Co., Ltd.
Item
2023.06.30 2022.12.311 2023.06.30 2022.12.31 2023.06.30 2022.12.31
Fair value of equity
investment with
-- -- -- -- -- --
quoted market
price
Continued:
Beijing Shouxin Jinyuan Qian'an Jinyu Shougang
Beijing Dingshengcheng Packaging
Management Consulting Center Environmental Protection
Materials Co., Ltd.
Item (Limited Partnership) Technology Co., Ltd.
2023.06.30 2022.12.311 2023.06.30 2022.12.31 2023.06.30 2022.12.31
Current assets 458,842,530.68 63,963,941.09 70,854,290.53 59,655,006.56 44,050,648.00 32,667,291.24
Non-current assets 300,037,431.81 694,420,798.63 550,753.94 618,495.73 220,122,170.83 214,254,258.49
Total assets 758,879,962.49 758,384,739.72 71,405,044.47 60,273,502.29 264,172,818.83 246,921,549.73
Current liabilities 152,453,289.49 152,354,244.94 27,907,810.98 22,971,249.27 47,002,701.17 56,004,281.62
Non-current
-- -- -- -- 114,923,500.00 88,818,500.00
liabilities
Total liabilities 152,453,289.49 152,354,244.94 27,907,810.98 22,971,249.27 161,926,201.17 144,822,781.62
Net assets 606,426,673.00 606,030,494.78 43,497,233.49 37,302,253.02 102,246,617.66 102,098,768.11
Including:
Non-controlling -- -- -- -- -- --
interests
Equity attributable
to shareholders of 606,426,673.00 606,030,494.78 43,497,233.49 37,302,253.02 102,246,617.66 102,098,768.11
the company
Net assets
calculated by
122,510,438.99 122,430,402.99 19,573,755.08 16,786,013.86 35,786,316.18 35,734,568.85
shareholding
proportion
Adjustment
Including:
-- -- 44,544.87 44,544.87 -- --
Goodwill
Unrealized profit
or loss of internal -- -- -- -- -- --
transaction
Impairment -- -- -- -- -- --
Others -- -- -- -- -- --
Carrying value of
equity investment 122,510,438.99 122,430,402.99 19,618,299.95 16,830,558.74 35,786,316.18 35,734,568.85
in the associates
Fair value of equity
investment with
-- -- -- -- -- --
quoted market
price
Continued:
Tangshan Tangcao Railway Co., Tangshan Caofeidian Dunshi New Qian'an Sinochem Coal Chemical
Item Ltd. Construction Material Co., Ltd. Industrial Co., Ltd.
Current period Prior period Current period Prior period Current period Prior period
Operating revenue 47,251,529.46 46,840,353.28 159,071,080.74 257,353,085.06 4,114,928,997.89 3,797,208,740.99
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Tangshan Tangcao Railway Co., Tangshan Caofeidian Dunshi New Qian'an Sinochem Coal Chemical
Item Ltd. Construction Material Co., Ltd. Industrial Co., Ltd.
Current period Prior period Current period Prior period Current period Prior period
Net profit -213,159,837.20 -216,098,611.44 -8,895,581.75 14,598,703.92 -259,578,672.13 -48,127,352.30
Net profit from
discontinuing -- -- -- -- -- --
operations
Other
comprehensive -- -- -- -- -- --
income
Total
comprehensive -213,159,837.20 -216,098,611.44 -8,895,581.75 14,598,703.92 -259,578,672.13 -48,127,352.30
income
Dividend received
-- -- -- 12,500,000.00 -- --
from associates
Continued:
Beijing Shouxin Jinyuan Qian'an Jinyu Shougang
Beijing Dingshengcheng Packaging
Management Consulting Center Environmental Protection
Item Materials Co., Ltd.
(Limited Partnership) Technology Co., Ltd.
Current period Prior period Current period Prior period Current period Prior period
Operating income 7,044,718.77 26,354,735.19 93,572,226.95 76,849,792.54 58,232,832.22 19,491,662.15
Net profit 396,178.22 15,844,055.54 6,194,980.47 3,131,409.36 147,849.55 1,349,356.27
Net profit from
discontinuing -- -- -- -- -- --
operation
Other comprehensive
-- -- -- -- -- --
income
Total comprehensive
396,178.22 15,844,055.54 6,194,980.47 3,131,409.36 147,849.55 1,349,356.27
income
Dividend received
-- -- -- -- -- --
from associates
(4) Summary financial information of no significant joint ventures and associates
Item 2023.06.30 or Current period 2022.12.31 or Prior period
Associates
Total carrying value of investment 130,525,939.40 131,600,050.63
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Items calculated according to shareholding
ratio
Net profit -175,402.83 713,173.76
Other comprehensive income -- --
Total comprehensive income -175,402.83 713,173.76
3. Interests in unconsolidated structured entities
(1) Basic information of unconsolidated structured entities
The unconsolidated structured entities are the Limited Partnership initiated by the
Company- Beijing Shouxin Jinyuan Management Consulting Center (Limited
Partnership) (Hereinafter referred to as Shouxin Jinyuan Fund or the Partnership) and
Beijing Shouxin Jin'an Equity Investment Partnership (Limited Partnership)
(Hereinafter referred to as Shouxin Jin'an Fund or the Partnership). In accordance
with the provisions of the limited partnership agreement, the Company has no control
over the Partnership.
①The purpose of establishing Shouxin Jinyuan Fund is combining the relevant
policies of Beijing on the development of sophisticated industry with the
market-oriented operation of M&A investment, actively responding to the strategic
goal of Beijing to build a sophisticated industrial structure, promoting the upgrading
and development of Beijing's sophisticated industry, contributing to the local
economic development and industrial structure adjustment of Beijing, and creating
satisfactory return on investment for investors.
The total subscribed capital of all partners to Shouxin Jinyuan Fund is no less than
RMB 1 billion. The partners of the Fund are divided into general partner and limited
partner, the contribution agreement is as follows: Beijing Shouyuan New Energy
Investment Management Co., Ltd., the general partner, contributes RMB 10,000
thousand; and among the limited partners, the Company agrees to contribute RMB
200,000 thousand, and the other limited partners agrees to contribute RMB 790,000
thousand in total.
As at 30 June 2023, Shouxin Jinyuan Fund has conducted investment activities and
three external investment projects has been invested with the amount of RMB
829,432.10 thousand. No financing activity has been conducted by the Fund.
② The purpose of establishing Shouxin Jin'an Fund is to focus on investment in
shougang Group system of leading enterprises, to enlarge and strengthen shougang
Group new material industry. Taking Zhixin Electromagnetic, Beiye, Guigang and
other advanced metal material enterprises as the platform, the company focuses on
Shougang Group's advantages in advanced electrical steel materials, cast superalloys
and precision alloys, and high-performance special steel and other new metal
materials.
The total subscribed capital of all partners to Shouxin Jin'an Fund is no less than
RMB 2,070.5455 million. The partners of the Fund are divided into general partner
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
and limited partner, the contribution agreement is as follows: Beijing Shouyuan
Xinneng Investment Management Co., Ltd., the general partner, contributes RMB
20.7055 million; and among the limited partners, the Company agrees to contribute
RMB 200,000 thousand, and the other limited partners agrees to contribute RMB
1,849.84 million in total.
As at 30 June 2023, Shouxin Jin'an Fund has completed fund raising and registered on
The Chinese Association of Securities Investment Funds and two external investment
projects has been invested with the amount of RMB 230 million. No financing
activity has been conducted by the Fund.
(2) Carrying value and maximum loss exposure of interests related assets and
liabilities
As at 30 June 2023, no assets and liabilities related to the interests in Shouxin Jinyuan
Fund recognized are recognized in the financial statements of the Company except for
the partner contribution agreed in the partner agreement. The maximum loss exposure
of the Company's interests in Shouxin Jinyuan Fund is RMB 105.8864 million. The
maximum loss exposure of the Company's interests in Shouxin Jin'an Fund is RMB
22.2164 million.
(3) The support provided to the unconsolidated structured entities
As at 30 June 2023, the Company had no intention to provide financial support or
other support for Shouxin Jinyuan Fund and Shouxin Jin'an Fund.
(4) Additional information disclosure of unconsolidated structured entities
As at 30 June 2023, no additional information related to Shouxin Jinyuan Fund and
Shouxin Jin'an Fund should be disclosed by the Company.
VIII. Financial instruments and risk management
The major financial instruments of the Company include cash and cash equivalents,
notes receivable, accounts receivable, financing receivables, other receivables, current
portion of non-current assets, other current assets, other equity instrument investments,
other non-current financial assets, long-term receivables, notes payable, accounts
payable, other payables, short-term borrowings, financial liabilities held for trading,
current portion of non-current liabilities, long-term borrowings and bond payables,
lease liabilities and long-term payables. The details of financial instruments are
disclosed in the respective notes. Risks relate to these financial instruments and risk
management policies used by the Company to minimize the risks are disclosed as
below. Management of the Company manages and monitors the risk exposures to
ensure the risks are controlled in the limited range.
1. Objectives and policies of risk management
The objective of the Company in risk management is to obtain an appropriate
equilibrium between risk and return, and also focuses on minimizing potential adverse
effects on the financial performance of the Company bring by the unpredictability of
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financial risk. Based on the objectives of risk management, certain policies are
established to recognize and analyze the risk. Also, in order to monitor the risk
position of the Company, internal control procedures are designed according to
acceptable level of risk. Both the policies and internal control procedures are
reviewed and revised regularly to adapt the changes of the market and business
activities of the Company.
The primary risks caused by the financial instruments of the Company are credit risk
and liquidity risk.
(1) Credit risk
Credit risk refers to the risk that the counterparty to a financial instrument would fail
to discharge its obligation under the terms of the financial instrument and cause a
financial loss to the Company.
The Company manages the credit risk on portfolio basis. Credit risks are mainly
caused by cash and cash equivalents, notes receivable, accounts receivable, other
receivables.
The Company mainly deposits in financial institutions with good reputation and high
credit rating therefore no significant credit risk associated with cash and cash
equivalents is expected.
In addition, policies related to limit the credit risk exposure on notes receivable,
accounts receivable and other receivables are established by the Company. The
Company evaluates credit quality and sets credit limits on customers by taking into
account the financial position, credit records and other factors such as current market
conditions. The credit history of the customers is regularly monitored by the Company.
In respect of customers with a poor credit history, the Company will use written
payment reminders, or shorten or cancel credit periods, to ensure the overall credit
risk of the Company is limited to a controllable extent.
The highest credit risk exposure to the Company is limited to the carrying value of
each financial instrument illustrated in the financial statements. The Company has not
provided any guarantee that might cause credit risk to the Company.
Among the accounts receivable of the Company, the accounts receivable of the top
five customers accounted for 37.94% (2022: 52.28%); among the other receivables of
the Company, the other receivables of the top five customers accounted for 63.04%
(2022: 63.31%)
(2) Liquidity risk
Liquidity risk refers to the risks that the Company will not be able to meet its
obligations associated with its financial liabilities that are settled by delivering cash or
other financial assets.
The Company maintains and monitors sufficient level of cash and cash equivalents as
considered by the management while managing liquidity risk in order to meet
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operational needs of the Company and reduce the effect of floating cash flow. The
usage of bank loan is monitored by the management of the Company and the loan
covenants are ensured to be complied. Meanwhile, primary financial institution
commits to provide sufficient reserve funds to satisfy the short term and long term
fund requirement of the Company.
2. Capital management
The capital management policies are made to keep the continuous operation of the
Company, to enhance the return to shareholders, to benefit other related parties and to
maintain the best capital structure to minimize the cost of capital.
To the maintenance or adjustment of the capital structure, the Company might adjust
the amount of dividends paid to shareholders, return capital to shareholders, issue new
shares and other equity instruments, or make an asset disposal to reduce debt
liabilities.
The Company monitors the capital structure on the basis of leverage ratio (total
liabilities divided total assets). As at 30 June 2023, the leverage ratio of the Company
is 62.72% (31 December 2022: 65.03%).
IX. Fair value
Fair value hierarchies are categorized into three levels as the lowest level input that is
significant to the entire fair value measurement.
Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets
and liabilities.
Level 2: inputs are inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly or indirectly.
Level 3: inputs are unobservable inputs for the asset or liability.
(1) Fair value of assets and liabilities measured at fair value
As at 31 December 2022, assets and liabilities measured at fair value are shown as
follows:
Level 1 fair Level 2 fair Level 3 fair
Item value value value Total
measurement measurement measurement
I. Recurring fair value
measurement
(1) Financing receivable -- -- 6,325,120,221.92 6,325,120,221.92
(2) Other equity instrument 473,270,672.00 -- 36,089,165.55 509,359,837.55
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
investment
(3) Other non-current financial
-- -- 79,234,007.60 79,234,007.60
assets
Total assets measured at fair
value 473,270,672.00 -- 6,440,443,395.07 6,913,714,067.07
on a recurring basis
(2) Fair values of items not measured at fair value
Financial assets and financial liabilities measured at amortized cost include: cash and
cash equivalents, notes receivable, accounts receivable, other receivables, short-term
borrowings, notes payable, accounts payable, other payables, long-term borrowings
due within one year, long-term borrowings and bonds payable, etc.
No additional details of financial assets and financial liabilities should be disclosed
since the difference between the fair value and carrying value of financial assets and
financial liabilities of the Company is approximately equal.
X. Related parties and related party transactions
1. Information about the parent company of the Company
Registered Shareholding
Parent Registration Percentage of
Business nature capital (RMB percentage
company place voting rights (%)
0,000) (%)
Shougang Company with limited
Group Beijing liability(wholly 2,875,502.50 56.53 56.53
Co., Ltd. state-owned)
The ultimate controlling party of the Company is State-owned Assets Supervision and
Administration Commission of People’s Government of Beijing Municipality.
During the reporting period, the change of the registered capital of the parent
company is as follows (Unit: RMB 0,000):
Opening balance Increase Decrease Closing balance
2,875,502.50 -- -- 2,875,502.50
2. Information about the subsidiaries of the Company
For information about the subsidiaries of the Company, refer to Note VII, 1.
3. Information about joint ventures and associates of the Company
For information about joint ventures and associates of the Company, refer to Note VII,
2.
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Joint ventures and associates that have related transactions with the Company in
current period or the prior period are as follows:
Name of joint venture or associate Relationship with the Company
Tangshan Shougang Jingtang Xishan Coking Co., Ltd. Joint ventures of the Company
Tangshan Guoxing Industrial Co., Ltd. Joint ventures of the Company
Tangshan Zhonghong Carbon Chemical Co., Ltd. Joint ventures of the Company
Tangshan Tangcao Railway Co., Ltd. Associates of the Company
Qian'an Sinochem Coal Chemical Industrial Co., Ltd. Associates of the Company
Beijing Dingshengcheng Packaging Materials Co., Ltd. Associates of the Company
Guangzhou Jinghai Shipping Co., Ltd. Associates of the Company
Tianjin Shougang Steel Processing&Distribution Co., Ltd. Associates of the Company
Ningbo Shougang Zhejin Steel Co., Ltd. Associates of the Company
Tangshan Caofeidian Dunshi New Construction Material Co., Ltd. Associates of the Company
Hebei Jingji Industry & Trading Co., Ltd. Associates of the Company
Beijing Shouxin Jinyuan Management Consulting Center (Limited
Associates of the Company
Partnership)
Shougang (Qingdao) Steel Industry Co., Ltd. Associates of the Company
Qian'an Jinyu Shougang Environmental Protection Technology Co.,
Associates of the Company
Ltd.
4. Information about other related parties
Related party Relationship with the Company
Under the control of the same parent
Shougang Group Finance Co., Ltd.
company
Under the control of the same parent
Shougang Mining Corporation
company
Under the control of the same parent
China Shougang International Trade&Engineering Corporation
company
Under the control of the same parent
Beijing Shougang Refractory& Metallurgical Burden Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Construction Group Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Gas Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Automation Information Technology Co., Ltd.
company
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Related party Relationship with the Company
Under the control of the same parent
Beijing Shougang Machinery&Electric Co., Ltd.
company
Under the control of the same parent
Qinhuangdao Shougang Machinery Co., Ltd.
company
Under the control of the same parent
Qian'an Shouxin Automation Information Technology Co., Ltd.
company
Under the control of the same parent
Qian'an First Real Packaging Service Co., Ltd.
company
Under the control of the same parent
Qian'an Shougang Equipment Structure Co., Ltd.
company
Under the control of the same parent
Beijing Soly Technology Co., Ltd.
company
Under the control of the same parent
Beijing Shouye Instruments&Meters Co., Ltd.
company
Under the control of the same parent
Beijing Shoujian Equipment Maintenance Co., Ltd.
company
Under the control of the same parent
Beijing Shoujian Hengxin Labor Service Co., Ltd.
company
Under the control of the same parent
Beijing Shoujian Hengji Construction Engineering Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Landscaping Co., Ltd.
company
Under the control of the same parent
Beijing Shougang International Engineering&Technology Co., Ltd.
company
Under the control of the same parent
Beijing Jinanyuan Automobile Transportation Co., Ltd.
company
Under the control of the same parent
Beijing Huaxia Technology Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Catering Co., Ltd.
company
Under the control of the same parent
Beijing Shoujia Steel Construction Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Ferroalloy Co., Ltd.
company
Under the control of the same parent
Lujiashan Limestone Mining of Shougang Beijing Co., Ltd.
company
Under the control of the same parent
Qinhuangdao Shougang Krosaki Refractory Co., Ltd.
company
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Related party Relationship with the Company
Under the control of the same parent
Yantai Shougang Mining 3D Co., Ltd.
company
Under the control of the same parent
Tianjin Shougang Electric Equipment Co., Ltd.
company
Under the control of the same parent
Beijing Chengxin Engineering Supervision Co., Ltd.
company
Under the control of the same parent
Beijing Shoucheng Packaging Service Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Materials Trading Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Futong Elevator Co., Ltd.
company
Tangshan Caofeidian Industrial District Shouhanxin Industrial Co., Under the control of the same parent
Ltd. company
Under the control of the same parent
Tonghua Iron and Steel Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Huaxia Engineering&Technology Co., Ltd.
company
Under the control of the same parent
Shougang Environmental Industry Co., Ltd.
company
Under the control of the same parent
Beijing Teyu Plate Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Mining Construction Co., Ltd.
company
Under the control of the same parent
Qinhuangdao Shouqin Metal Materials Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Industrial Group Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Cultural Development Co., Ltd.
company
Under the control of the same parent
Qinhuangdao Shouqin Steel Machining&Delivery Co., Ltd.
company
Under the control of the same parent
Shougang Casey Steel Co., Ltd.
company
Under the control of the same parent
Tangshan Caofeidian First Real Industrial Co., Ltd.
company
Under the control of the same parent
Qiangang Hotel.
company
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Related party Relationship with the Company
Under the control of the same parent
Beijing Shougang Special Steel Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Yunxiang Industrial Technology Co., Ltd.
company
Under the control of the same parent
Bohai International Conference Center Co., Ltd.
company
Under the control of the same parent
Qian'an Shougang Xingkuang Industrial Co., Ltd.
company
Under the control of the same parent
Shougang Guiyang Special Steel Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Park Comprehensive Service Co., Ltd.
company
Under the control of the same parent
Shougang Changzhi Steel&Iron Co., Ltd.
company
Under the control of the same parent
Beijing Beiye Functional Materials Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Metal Co., Ltd.
company
Under the control of the same parent
Tangshan Caofeidian Industrial Zone Jingtang Industrial Co., Ltd.
company
Under the control of the same parent
Guizhou Bohong Industrial Co., Ltd.
company
Under the control of the same parent
Dachang Shougang Machinery&Electric Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Lanzatech Co., Ltd.
company
Under the control of the same parent
South China International Leasing Co., Ltd
company
Under the control of the same parent
Qinhuangdao Shougang Plate Mill Co., Ltd.
company
Under the control of the same parent
Bejing Shougang International Travel Co., Ltd.
company
Under the control of the same parent
Hebei Shougang Jingtang Machinery Co., Ltd.
company
Under the control of the same parent
Ningbo Metallurgical Investigation, Design&Research Co., Ltd.
company
Under the control of the same parent
Qinhuangdao Shougang Racing Valley Co., Ltd
company
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Related party Relationship with the Company
Under the control of the same parent
Beijing Shougang Property Management Co., Ltd.
company
Under the control of the same parent
Beijing Shouronghui Technology Development Co., Ltd.
company
Under the control of the same parent
Shougang Shuicheng Steel (Group) Saide Construction Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Environmental Engineering Technology Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Gas Tangshan Co., Ltd.
company
Under the control of the same parent
Guizhou Shuigang Logistics Co., Ltd.
company
Under the control of the same parent
Beijing Shouke Xingye Engineering Technology Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Construction Investment Co., Ltd.
company
Under the control of the same parent
Shougang Commercial Factoring Co., Ltd.
company
Guizhou Liupanshui Shenghongda Mechanical Equipment Under the control of the same parent
Manufacturing Co., Ltd company
Under the control of the same parent
Guiyang Steel Mills I/E Corp.
company
Under the control of the same parent
Beijing Shouyi Mining Hospital Co., Ltd.
company
Under the control of the same parent
Peking University Shougang Hospital
company
Under the control of the same parent
Tangshan Shougang Malanzhuang Iron Ore Co., Ltd.
company
Under the control of the same parent
Beijing Shougang Gitane New Materials Co., Ltd.
company
Under the control of the same parent
Jingxi Commercial Factoring Co., Ltd
company
Under the control of the same parent
Beijing Shougang Chengyun Holdings Co., Ltd
company
Joint ventures or associates of the
Beijing Shougang Shape Metal Co., Ltd.
Company’s parent company
Joint ventures or associates of the
Beijing Jingxi Supply Chain Management Co., Ltd.
Company’s parent company
144
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Related party Relationship with the Company
Joint ventures or associates of the
Beijing Thermal Zhongda Heat Exchange Equipment Co., Ltd.
Company’s parent company
Joint ventures or associates of the
PetroChina Shougang (Beijing) Petroleumsales Co., Ltd.
Company’s parent company
Joint ventures or associates of the
Beijing Shoushe Metallurgical Technology Co., Ltd.
Company’s parent company
Joint ventures or associates of the
Beijing Shouyu Industry and Trade Co., Ltd.
Company’s parent company
Beijing Xingyeda Machinery&Electric Equipment Manufacture Co., Joint ventures or associates of the
Ltd. Company’s parent company
Joint ventures or associates of the
Chaoyang Shougang Beifang Machinery Co., Ltd.
Company’s parent company
Joint ventures or associates of the
Tangshan Caofeidian Ganglian Logistics Co., Ltd.
Company’s parent company
Joint ventures or associates of the
Tangshan Caofeidian Industry Port Co., Ltd.
Company’s parent company
Joint ventures or associates of the
YASKAWA Shougang Robert Co., Ltd.
Company’s parent company
Joint ventures or associates of the
Cmi Engineering (Beijing) Co., Ltd.
Company’s parent company
Joint ventures or associates of the
Qian'an Shoujia Construction Material Co., Ltd.
Company’s parent company
Joint ventures or associates of the
Sanhe Shoujia Construction Material Co., Ltd.
Company’s parent company
Joint ventures or associates of the
Shoujia Huanke (Qian'an) Co., Ltd
Company’s parent company
Joint ventures or associates of the
Hua Xia Bank Co.,Ltd.
Company’s parent company
Beijing Shougang Resources Comprehensive Utilization Technology Joint ventures or associates of the
Development Co., Ltd. Company’s parent company
Joint ventures or associates of the
Jingxi Shoutang Supply Chain Management Co., Ltd
Company’s parent company
Joint ventures or associates of the
Beijing Shoubang New Material Co., Ltd.
Company’s parent company
Joint ventures or associates of the
Jingtang Port Shougang Terminal Co., Ltd.
Company’s parent company
Joint ventures or associates of the
Beijing Shoutegang Yuandong Magnesium Alloy Products Co., Ltd.
Company’s parent company
145
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Related party Relationship with the Company
Suzhou Tonggang Shunye Steel Materials Processing Distribution Joint ventures or associates of the
Co., Ltd. Company’s parent company
Shougang Shuicheng Iron and Steel (Group) Xingyuan Development Joint ventures or associates of the
Investment Co., Ltd. Company’s parent company
Joint ventures or associates of the
Chengde Xintong Shoucheng Mining Co., Ltd.
Company’s parent company
Joint ventures or associates of the
Gansu Province, Wenxian Million Litie Alloy Co., Ltd.
Company’s parent company
Joint ventures or associates of the
Beijing Shoutaizhongxin Science & Technology Co., Ltd
Company’s parent company
Directors, Supervisors, CFO and Board Secretary Key management personnel
5. Information about related party transactions
(1) Details of related purchase and sales
①Purchase of goods and receiving of services from related parties
Nature of
Related party Current period Prior period
transaction
Shougang Group Co., Ltd. Raw material 11,068,944,447.34 15,812,441,439.56
Shougang Group Co., Ltd. Fuel material 33,920,747.42 850,771,562.07
Shougang Group Co., Ltd. Spare parts -- 288,719.70
Shougang Group Co., Ltd. Production service 2,235,247.17 475,760.52
Shougang Group Co., Ltd. Fund usage charges 35,745,338.87 34,969,724.91
Shougang Group Finance Co., Ltd. Fund usage charges 201,948,042.69 153,237,793.51
Shougang Mining Corporation Raw material 1,926,559,892.67 2,099,761,084.04
Shougang Mining Corporation Power energy 33,142,695.62 --
Shougang Mining Corporation Spare parts 32,099,434.72 3,202,556.00
Shougang Mining Corporation Production service 150,457,234.49 54,367,334.62
Engineering
Shougang Mining Corporation 1,427,460.00 231,780.00
equipment
Shougang Mining Corporation Fund usage charges 910,228.06 --
China Shougang International
Export cost 34,538,588.30 30,613,231.65
Trade&Engineering Corporation
China Shougang International
Raw material 5,139,000.00 1,733,274,763.68
Trade&Engineering Corporation
China Shougang International
Fuel material -- 96,591,728.29
Trade&Engineering Corporation
Qian'an Sinochem Coal Chemical
Fuel material 3,552,528,494.93 3,254,253,797.34
Industrial Co., Ltd.
Qian'an Sinochem Coal Chemical Power energy 240,431,015.30 180,226,703.10
146
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Nature of
Related party Current period Prior period
transaction
Industrial Co., Ltd.
Beijing Shougang Refractory&
Production service -- 1,458,000.00
Metallurgical Burden Co., Ltd.
Beijing Shougang Refractory&
Engineering service -- 6,163,561.10
Metallurgical Burden Co., Ltd.
Beijing Shougang Construction
Production service 300,447,167.99 251,776,778.38
Group Co., Ltd.
Beijing Shougang Construction
Spare parts 9,858,739.08 13,489,674.64
Group Co., Ltd.
Beijing Shougang Construction
Engineering service 236,173,424.69 136,295,065.42
Group Co., Ltd.
Beijing Shougang Gas Co., Ltd. Spare parts 3,200,799.01 3,354,070.98
Beijing Shougang Gas Co., Ltd. Production service 33,977,201.66 27,586,525.02
Beijing Shougang Gas Co., Ltd. Power energy 50,768,925.53 53,595,767.15
Beijing Shougang Gas Co., Ltd. Auxiliary material 3,120,360.38 4,682,391.45
Beijing Shougang Automation
Production service 141,704,854.15 139,713,525.44
Information Technology Co., Ltd.
Beijing Shougang Automation
Spare parts 7,205,892.14 1,208,517.00
Information Technology Co., Ltd.
Beijing Shougang Automation
Engineering service 76,489,735.52 41,581,898.02
Information Technology Co., Ltd.
Beijing Shougang Automation Engineering
30,712,548.34 65,611,045.55
Information Technology Co., Ltd. equipment
Beijing Shougang
Spare parts 43,885,046.44 126,174,342.16
Machinery&Electric Co., Ltd.
Beijing Shougang
Production service 136,479,217.42 140,207,175.40
Machinery&Electric Co., Ltd.
Beijing Shougang Engineering
13,802,749.16 16,345,148.79
Machinery&Electric Co., Ltd. equipment
Beijing Shougang
Fuel material 36,602,521.60 --
Machinery&Electric Co., Ltd.
Qinhuangdao Shougang Machinery
Spare parts 24,998,009.60 24,611,795.80
Co., Ltd.
Qinhuangdao Shougang Machinery
Production service 55,531,690.93 89,270,254.32
Co., Ltd.
Qinhuangdao Shougang Machinery
Auxiliary material 67,370.00 144,724.00
Co., Ltd.
Qinhuangdao Shougang Machinery Engineering
814,000.00 165,000.00
Co., Ltd. equipment
Qian'an Shouxin Automation
Production service 63,886,655.00 60,593,120.00
Information Technology Co., Ltd.
Qian'an First Real Packaging Production service 144,432,292.06 178,122,270.58
147
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Nature of
Related party Current period Prior period
transaction
Service Co., Ltd.
Qian'an First Real Packaging
Raw material 1,195,811.49 --
Service Co., Ltd.
Qian'an Shougang Equipment
Spare parts 7,552,701.68 8,846,318.00
Structure Co., Ltd.
Qian'an Shougang Equipment
Production service 36,483,912.17 37,679,377.37
Structure Co., Ltd.
Qian'an Shougang Equipment Engineering
-- 145,631.07
Structure Co., Ltd. equipment
Qian'an Shougang Equipment
Engineering service -- 519,211.73
Structure Co., Ltd.
Qian'an Shougang Equipment
Raw material 109,827,070.32 158,799,232.71
Structure Co., Ltd.
Beijing Shouye
Spare parts 16,182,291.22 16,346,051.76
Instruments&Meters Co., Ltd.
Beijing Shouye Engineering
993,058.00 1,276,704.59
Instruments&Meters Co., Ltd. equipment
Beijing Shoujian Equipment
Production service 34,490,733.22 20,762,791.10
Maintenance Co., Ltd.
Beijing Shoujian Equipment
Auxiliary material 2,055,560.00 2,723,200.00
Maintenance Co., Ltd.
Beijing Shoujian Equipment Engineering
19,094,172.47 777,099.03
Maintenance Co., Ltd. equipment
Beijing Shoujian Hengxin Labor
Production service 844,500.00 915,000.00
Service Co., Ltd.
Beijing Shoujian Hengji
Spare parts 772,337.55 224,551.00
Construction Engineering Co., Ltd.
Beijing Shougang Landscaping Co.,
Life service 17,849,883.43 13,080,973.10
Ltd.
Beijing Shougang International
Spare parts 9,102,312.33 9,632,190.00
Engineering&Technology Co., Ltd.
Beijing Shougang International Engineering
1,202,212.39 --
Engineering&Technology Co., Ltd. equipment
Beijing Shougang International
Engineering service 125,194,942.99 458,858,687.48
Engineering&Technology Co., Ltd.
Beijing Shougang International
Production service 5,122,720.55 194,900.00
Engineering&Technology Co., Ltd.
Beijing Jinanyuan Automobile
Production service 35,310,117.57 33,397,531.26
Transportation Co., Ltd.
Beijing Huaxia Technology Co.,
Spare parts 3,745,828.06 1,690,465.59
Ltd.
Beijing Huaxia Technology Co., Engineering 2,075,133.00 --
148
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Nature of
Related party Current period Prior period
transaction
Ltd. equipment
Beijing Shougang Catering Co.,
Life service 5,952,307.96 6,597,640.95
Ltd.
Beijing Shoujia Steel Construction
Production service 16,574,840.79 22,160,417.70
Co., Ltd.
Beijing Shougang Ferroalloy Co.,
Raw material 221,729,419.38 196,563,104.18
Ltd.
Lujiashan Limestone Mining of
Raw material 180,609,531.71 182,687,593.53
Shougang Beijing Co., Ltd.
Lujiashan Limestone Mining of
Production service 40,350,564.25 30,168,667.91
Shougang Beijing Co., Ltd.
Lujiashan Limestone Mining of
Auxiliary material 7,228,477.02 1,902,399.75
Shougang Beijing Co., Ltd.
Qinhuangdao Shounai New
Auxiliary material 13,539,928.09 65,408,513.30
Material Co., Ltd
Yantai Shougang Mining 3D Co.,
Spare parts -- 372,223.76
Ltd.
Tianjin Shougang Electric Engineering
5,891,877.00 8,603,286.07
Equipment Co., Ltd. equipment
Tianjin Shougang Electric
Spare parts 3,228,328.00 2,698,081.00
Equipment Co., Ltd.
Beijing Chengxin Engineering
Engineering service 6,358,854.58 6,965,677.24
Supervision Co., Ltd.
Beijing Chengxin Engineering
Production service 470,200.00 2,735,679.25
Supervision Co., Ltd.
Beijing Shoucheng Packaging
Production service 33,538,765.42 61,219,713.91
Service Co., Ltd.
Beijing Shougang Materials
Fuel material 547,672,053.69 225,712,360.18
Trading Co., Ltd.
Beijing Shougang Materials
Raw material 4,702,909,170.72 538,212,672.10
Trading Co., Ltd.
Tangshan Shougang Jingtang
Power energy 755,857,551.98 524,240,136.08
Xishan Coking Co., Ltd.
Tangshan Shougang Jingtang
Fuel material 8,000,548,210.12 8,950,680,568.54
Xishan Coking Co., Ltd.
Tangshan Shougang Jingtang
Production service 53,096,252.89 --
Xishan Coking Co., Ltd.
Beijing Shougang Futong Elevator
Spare parts 74,060.00 154,110.00
Co., Ltd.
Beijing Shougang Futong Elevator
Production service 459,500.00 400,800.00
Co., Ltd.
Tangshan Guoxing Industrial Co., Production service 57,556,793.88 77,793,837.74
149
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Nature of
Related party Current period Prior period
transaction
Ltd.
Tangshan Guoxing Industrial Co.,
Engineering service -- 2,236,643.61
Ltd.
Tangshan Caofeidian Industrial
District Shouhanxin Industrial Co., Production service 152,049,198.80 207,653,177.98
Ltd.
Tonghua Iron and Steel Co., Ltd. Steels 3,802,885.87 133,941,619.60
Shougang Environmental Industry
Production service 1,646,709.62 1,915,094.29
Co., Ltd.
Beijing Shougang Mining
Engineering service 17,531,728.65 13,312,717.97
Construction Co., Ltd.
Beijing Shougang Mining
Production service 458,486.00 1,630,972.26
Construction Co., Ltd.
Beijing Shougang Industrial Group
Life service 1,221,575.75 11,626,269.25
Co., Ltd.
Beijing Shougang Shape Metal Co.,
Raw material 84,278.76 528,252.21
Ltd.
Beijing Dingshengcheng Packaging
Production service 68,474,875.13 70,884,192.54
Materials Co., Ltd.
Beijing Dingshengcheng Packaging
Auxiliary material 2,315,146.00 552,870.00
Materials Co., Ltd.
Beijing Shougang Cultural
Production service -- 580,274.11
Development Co., Ltd.
Jingxi Commercial Factoring Co.,
Raw material 34,907,834.40 --
Ltd
Qinhuangdao Shouqin Steel
Spare parts 125,823.00 179,380.00
Machining&Delivery Co., Ltd.
Shougang Casey Steel Co., Ltd. Production service 43,364,760.22 52,927,482.03
Tangshan Caofeidian First Real
Life service 42,874,283.75 41,904,796.94
Industrial Co., Ltd.
Tangshan Caofeidian First Real
Spare parts 677,418.00 --
Industrial Co., Ltd.
Qiangang Hotel. Production service 9,778,036.37 9,481,071.36
Beijing Shougang Yunxiang
Spare parts 484,000.00 17,688.00
Industrial Technology Co., Ltd.
Bohai International Conference
Life service 661,300.00 --
Center Co., Ltd.
Beijing Shougang Lanzatech Co.,
Power energy 3,693,882.56 2,059,676.23
Ltd.
Beijing Shougang Lanzatech Co.,
Engineering service 49,809,259.88 --
Ltd.
Qian'an Shougang Xingkuang Auxiliary material 24,957,584.67 26,714,170.78
150
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Nature of
Related party Current period Prior period
transaction
Industrial Co., Ltd.
Beijing Thermal Zhongda Heat
Spare parts 9,765,991.05 13,600,870.54
Exchange Equipment Co., Ltd.
Beijing Thermal Zhongda Heat
Production service 6,350,350.00 6,954,102.00
Exchange Equipment Co., Ltd.
Guangzhou Jinghai Shipping Co.,
Production service 128,099,079.43 186,551,736.65
Ltd.
PetroChina Shougang (Beijing)
Spare parts 23,872,881.22 33,949,641.62
Petroleumsales Co., Ltd.
PetroChina Shougang (Beijing)
Production service 403,724.29 417,866.35
Petroleumsales Co., Ltd.
Beijing Shoushe Metallurgical Engineering
675,290.00 781.13
Technology Co., Ltd. equipment
Beijing Shouyu Industry and Trade
Auxiliary material 4,238,547.63 4,576,121.90
Co., Ltd.
Chaoyang Shougang Beifang
Spare parts -- 9,600.00
Machinery Co., Ltd.
Tangshan Caofeidian Ganglian
Production service 99,978,846.49 15,505,687.69
Logistics Co., Ltd.
Tangshan Caofeidian Industry Port
Production service 251,375,939.87 201,482,854.02
Co., Ltd.
Tianjin Shougang Steel
Production service 1,265,257.35 1,695,986.90
Processing&Distribution Co., Ltd.
Tianjin Shougang Steel
Raw material 4,333,260.81 --
Processing&Distribution Co., Ltd.
Beijing Shoutaizhongxin Science &
Spare parts 4,688,568.56 3,470,297.39
Technology Co., Ltd
Shougang (Qingdao) Steel Industry
Raw material 342,039.82 2,995.58
Co., Ltd.
Beijing Shougang Park
Life service 572,688.63 958,908.50
Comprehensive Service Co., Ltd.
Hebei Shougang Jingtang
Production service 28,746,408.58 207,398.66
Machinery Co., Ltd.
Engineering
Cmi Engineering (Beijing) Co., Ltd. 7,440,989.91 231,700.00
equipment
South China International Leasing
Fund usage charges 373,598.24 375,329.71
Co., Ltd
Beijing Shouxin Jinyuan
Management Consulting Center Fund usage charges -- 10,132,191.78
(Limited Partnership)
Shougang Changzhi Steel&Iron
Raw material -- 1,509,854.85
Co., Ltd.
151
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Nature of
Related party Current period Prior period
transaction
Qian'an Jinyu Shougang
Environmental Protection Production service 8,461,576.13 13,926,963.02
Technology Co., Ltd.
Beijing Shougang Property
Production service -- 858,173.99
Management Co., Ltd.
Guiyang Steel Mills I/E Corp. Production service 2,970,042.21 8,416,379.32
Gansu Province, Wenxian Million
Raw material 326,252,685.09 --
Litie Alloy Co., Ltd.
Tangshan Caofeidian Dunshi New
Production service 2,918,833.30 1,018,184.09
Construction Material Co., Ltd.
Beijing Shouyi Mining Hospital
Production service 47,492.43 17,250.47
Co., Ltd.
Peking University Shougang
Production service 87,000.00 --
Hospital
Tangshan Shougang Malanzhuang
Raw material 197,077,674.61 282,648,175.75
Iron Ore Co., Ltd.
Jingtang Port Shougang Terminal
Production service 1,192,452.83 --
Co., Ltd.
②Sale of goods and rendering of services to related parties
Related party Nature of transaction Current period Prior period
Shougang Mining Corporation Steel -- 1,892,789.48
Shougang Mining Corporation Raw fuel material 9,241,798.22 16,167,302.25
Shougang Mining Corporation Power energy 343,444.78 65,118.20
Shougang Mining Corporation Production service 8,937,128.86 8,550,486.22
Qian'an Sinochem Coal Chemical
Power energy 115,838,012.89 141,819,751.69
Industrial Co., Ltd.
Shougang Casey Steel Co., Ltd. Steel 54,564,705.92 279,607,574.70
Shougang Casey Steel Co., Ltd. Production service 620,236.80 --
Beijing Shougang Construction
Power energy 945,464.96 1,987,180.90
Group Co., Ltd.
Beijing Shougang Construction
Steel 1,717,553.21 --
Group Co., Ltd.
Beijing Shougang Construction
Production service 296,607.92 1,693,846.18
Group Co., Ltd.
Beijing Shougang Gas Co., Ltd. Power energy 65,271,726.53 50,568,488.85
Beijing Shougang
Steel 344,920,644.23 28,771,158.06
Machinery&Electric Co., Ltd.
Beijing Shougang
Power energy 1,853,417.89 1,934,832.18
Machinery&Electric Co., Ltd.
Beijing Shougang Production service 795,431.19 1,535,761.47
152
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Related party Nature of transaction Current period Prior period
Machinery&Electric Co., Ltd.
Beijing Shougang Ferroalloy Co.,
Power energy 2,053,563.99 1,600,589.47
Ltd.
Beijing Shougang Ferroalloy Co.,
Raw fuel material 10,545,043.68 8,155,967.97
Ltd.
Beijing Shougang Ferroalloy Co.,
Production service 449,154.05 449,154.05
Ltd.
Tangshan Shougang Jingtang Xishan
Power energy 484,146,525.18 352,743,305.52
Coking Co., Ltd.
Tangshan Shougang Jingtang Xishan
Production service 120,724,400.11 106,912,003.10
Coking Co., Ltd.
Beijing Beiye Functional Materials
Billet 1,714,757.18 6,404,612.46
Co., Ltd.
Beijing Shougang Huaxia
Raw fuel material 1,356,766.61 --
Engineering&Technology Co., Ltd.
Beijing Shoucheng Packaging
Steel -- 3,384,484.97
Service Co., Ltd.
Beijing Shoucheng Packaging
Power energy 140,070.48 192,071.90
Service Co., Ltd.
Beijing Shoucheng Packaging
Production service 957,448.40 938,610.78
Service Co., Ltd.
Qian'an First Real Packaging Service
Steel 63,796,367.40 82,015,743.49
Co., Ltd.
Beijing Shouronghui Technology
Steel 8,818,653.83 37,212,138.92
Development Co., Ltd.
Tangshan Caofeidian Dunshi New
Raw fuel material 42,368,581.63 113,217,212.93
Construction Material Co., Ltd.
Tangshan Caofeidian Dunshi New
Power energy 66,415,506.75 67,283,007.37
Construction Material Co., Ltd.
Tangshan Caofeidian Dunshi New
Production service 13,424,107.22 13,336,395.41
Construction Material Co., Ltd.
Beijing Shougang Metal Co., Ltd. Steel 841,013.59 25,015,735.61
Beijing Shougang Metal Co., Ltd. Power energy 294,190.90 423,862.40
Qinhuangdao Shougang Machinery
Raw fuel material 298,910,811.61 352,658,801.28
Co., Ltd.
Qinhuangdao Shougang Machinery
Power energy 268,162.33 265,138.97
Co., Ltd.
Qinhuangdao Shougang Machinery
Production service 238,869.63 --
Co., Ltd.
Qian'an Shougang Equipment
Production service 256,293.58 221,876.15
Structure Co., Ltd.
Qian'an Shougang Equipment
Steel 1,836,050.94 1,252,437.21
Structure Co., Ltd.
153
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Related party Nature of transaction Current period Prior period
Tangshan Guoxing Industrial Co.,
Power energy 1,107,952.34 707,796.15
Ltd.
Tangshan Guoxing Industrial Co.,
Raw fuel material 677,577.93 243,642.67
Ltd.
Tangshan Guoxing Industrial Co.,
Production service 855,983.08 1,259,047.62
Ltd.
Tangshan Caofeidian Industrial Zone
Power energy -- 55,369.38
Jingtang Industrial Co., Ltd.
Tangshan Caofeidian First Real
Power energy 374,939.81 370,582.77
Industrial Co., Ltd.
Beijing Shougang Automation
Power energy 41,468.41 --
Information Technology Co., Ltd.
Beijing Shougang Automation
Production service 67,245.28 789,703.89
Information Technology Co., Ltd.
Beijing Jinanyuan Automobile
Production service 821,083.87 595,599.93
Transportation Co., Ltd.
Tonghua Iron and Steel Co., Ltd. Production service 50,000.00 --
Lujiashan Limestone Mining of
Raw fuel material -- 1,342,898.54
Shougang Beijing Co., Ltd.
Tangshan Caofeidian Industry Port
Power energy 2,320,570.00 2,419,158.00
Co., Ltd.
Tangshan Zhonghong Carbon
Interest income 5,922,896.67 5,488,952.23
Chemical Co., Ltd.
Ningbo Shougang Zhejin Steel Co.,
Steel 160,626,440.02 229,785,614.25
Ltd.
Shougang (Qingdao) Steel Industry
Steel 809,865,140.43 1,177,017,052.92
Co., Ltd.
Shougang (Qingdao) Steel Industry
Production service 212.37 --
Co., Ltd.
Tianjin Shougang Steel
Steel 22,516,403.45 26,416,151.05
Processing&Distribution Co., Ltd.
Qian'an Shoujia Construction
Power energy 13,384,733.24 9,244,055.41
Material Co., Ltd.
Qian'an Shoujia Construction
Raw fuel material 14,991,381.04 25,145,851.19
Material Co., Ltd.
Qian'an Shoujia Construction
Production service 248,418.37 248,418.37
Material Co., Ltd.
Beijing Dingshengcheng Packaging
Power energy 29,150.09 --
Materials Co., Ltd.
Guizhou Bohong Industrial Co., Ltd. Production service 42,883.39 45,952.11
Shougang Group Co., Ltd. Production service 104,880,000.00 138,060,000.00
Beijing Shougang Landscaping Co.,
Power energy 438.3 691.88
Ltd.
154
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Related party Nature of transaction Current period Prior period
Guangzhou Jinghai Shipping Co.,
Production service 24,620,249.30 24,332,714.23
Ltd.
PetroChina Shougang (Beijing)
Power energy 14,446.67 19,027.65
Petroleumsales Co., Ltd.
PetroChina Shougang (Beijing)
Steel 23,282,150.23 40,593,541.40
Petroleumsales Co., Ltd.
Shougang Group Finance Co., Ltd. Interest income 53,273,081.46 58,041,420.19
Qian'an Shougang Xingkuang
Steel 15,452,898.93 19,271,308.07
Industrial Co., Ltd.
Beijing Shougang Gas Tangshan
Production service 282,857.16 --
Co., Ltd.
Beijing Shougang Catering Co., Ltd. Power energy 169,813.86 292,663.17
Guizhou Liupanshui Shenghongda
Mechanical Equipment Production service -- 34,181.68
Manufacturing Co., Ltd
Guizhou Shuigang Logistics Co.,
Production service 105,043.02 17,949.06
Ltd.
Shougang Shuicheng Iron and Steel
(Group) Xingyuan Development Production service -- 10,830.19
Investment Co., Ltd.
Hebei Jingji Industry & Trading Co.,
Steel 4,690,630.50 3,105,020.40
Ltd.
Qian'an Jinyu Shougang
Environmental Protection Raw fuel material 30,561,741.67 --
Technology Co., Ltd.
Jingtang Port Shougang Terminal
Production service 167,361.48 --
Co., Ltd.
Shoujia Huanke (Qian'an) Co., Ltd Raw fuel material 17,684,714.70 11,675,057.67
Beijing Shoujia Steel Construction
Power energy 694,677.71 553,212.75
Co., Ltd.
Beijing Thermal Zhongda Heat
Production service 1,183.02 --
Exchange Equipment Co., Ltd.
Beijing Shougang Lanzatech Co.,
Power energy 67,702,085.08 67,033,212.67
Ltd.
Beijing Shougang Lanzatech Co.,
Production service 736,172.37
Ltd.
Tangshan Tangcao Railway Co.,
Production service 161,886.78 --
Ltd.
Beijing Shougang Resources
Comprehensive Utilization Raw fuel material 510,865.44 --
Technology Development Co., Ltd.
Qinhuangdao Shounai New Material
Raw fuel material 31,225.06 --
Co., Ltd
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Related party Nature of transaction Current period Prior period
Hebei Shougang Jingtang Machinery
Production service 594.34 --
Co., Ltd.
Beijing Shougang Chengyun
Steel 91,853,232.24 --
Holdings Co., Ltd
Ordos Baotou Steel Shourui Material
Steel -- 7,321,222.63
Technology Co., Ltd.
(2) Details of related party leases
① The Company as a lessor
Lease income Lease income
Type of assets
Lessee recognized in recognized in
leased
current period prior period
Qian'an Sinochem Coal Chemical Industrial Co., Ltd. Land use right 493,140.39 412,268.42
Tangshan Shougang Jingtang Xishan Coking Co.,
Land use right 12,071,833.13 12,071,833.13
Ltd.
Tangshan Caofeidian Dunshi New Construction
Land use right 1,190,380.97 1,190,380.97
Material Co., Ltd.
Beijing Shougang Lanzatech Co., Ltd. Land use right 82,666.67 82,666.67
② The Company as a lessee
Lease
Lease expenses
Type of assets expenses
Lessor recognized in
leased recognized in
current period
prior period
Beijing Shougang Construction Investment Co., Ltd. Property 5,028,278.14 5,028,278.14
Shougang Group Co., Ltd. Property 1,753,757.51 1,711,281.61
Beijing Shougang Special Steel Co., Ltd. Property -- --
Interest expenses incurred on lease liabilities during the reporting period
Interest
Interest expenses of expenses of
Lessor Type of assets leased
the current period the prior
period
Property and
Shougang Group Co., Ltd. 726,524.57 751,069.25
buildings
Beijing Shougang Construction Investment Co., Property and
631,884.02 832,385.74
Ltd. buildings
(3) Details of related party guarantees
① The Company as a guarantor
156
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Amount of Status of
Guarantee Beginning date Maturity date
guarantee guarantee
Shougang (Qingdao) Steel Industry
210,000,000.00 2021/11/25 2023/11/18 Incomplete
Co., Ltd.
Ningbo Shougang Zhejin Steel Co.,
44,000,000.00 2023/2/15 2024/2/15 Incomplete
Ltd.
Shanghai Shougang Steel & Iron
160,500,000.00 2022/12/14 2023/12/13 Incomplete
Trading Co., Ltd.
② The Company as a guarantee
Amount of Status of
Guarantor Beginning date Maturity date
guarantee guarantee
Shougang Group Co., Ltd. 4,909,697,916.68 2021/8/13 2023/5/5 Incomplete
Shougang Group Co., Ltd. 9,110,869,444.44 2019/9/6 2031/9/3 Incomplete
(4) Details of related party funding
Related party Closing balance Beginning date Maturity date Note
Shougang Group Co., Ltd. 195,112,584.84 2020/3/25 2025/5/18 Entrust loans
Shougang Group Finance Co.,
11,082,283,378.61 2022/7/7 2024/6/16 Short-term loans
Ltd.
Shougang Group Finance Co.,
500,395,833.33 2022/11/4 2025/11/4 Long-term loans
Ltd.
Shougang Group Finance Co.,
3,609,600,000.00 2023/1/16 2023/12/27 Notes payable
Ltd.
Related party Closing balance Beginning date Maturity date Note
Tangshan Zhonghong Carbon Other current
300,294,216.36 —— ——
Chemical Co., Ltd. assets
(5) Remuneration of key management personnel
The Company has 15 key management personnel in current period, and 21 key
management personnel in prior period. The remuneration payment is as follows:
Item Current period (RMB 0,000) Prior period (RMB 0,000)
Remuneration of key
management personnel 402.22 603.72
(excluding share payment)
157
Beijing Shougang Co. Ltd Semi-Annual Report 2023
158
Beijing Shougang Co. Ltd Semi-Annual Report 2023
6. Receivables from and payables to related parties
(1) Receivables from related parties
As at 30 June 2023 As at 31 December 2022
Item Related party
Book balance Provision for bad debts Book balance Provision for bad debts
Bank deposits Shougang Group Finance Co., Ltd. 7,368,480,229.24 -- 8,782,663,274.02 --
Bank deposits Hua Xia Bank Co.,Ltd. 2,693,537.75 -- 6,713,364.79 --
Accounts receivable Shougang Group Co., Ltd. -- -- 57,479.37 2,047.03
Accounts receivable Shougang Casey Steel Co., Ltd. 105,527,619.05 3,756,783.24 290,361,751.31 10,336,878.35
Beijing Shougang Huaxia
Accounts receivable 1,748,412.19 487,967.05 1,748,412.19 487,967.75
Engineering&Technology Co., Ltd.
Accounts receivable Beijing Shougang Lanzatech Co., Ltd. -- -- 34,418,648.92 1,225,303.90
Accounts receivable Qian'an Shoujia Construction Material Co., Ltd. 53,221,363.06 1,974,825.21 56,221,363.06 2,002,230.58
Accounts receivable Sanhe Shoujia Construction Material Co., Ltd. -- -- 8,775,968.24 8,214,183.99
Qinhuangdao Shouqin Metal Materials Co.,
Accounts receivable 1,438,064.93 1,070,495.53 1,438,064.93 1,070,495.53
Ltd.
Accounts receivable Tonghua Iron and Steel Co., Ltd. 400,000.00 14,245.34 506,248.00 17,810.17
Beijing Shougang International
Accounts receivable 354,540.00 223,634.15 428,540.00 297,559.83
Engineering&Technology Co., Ltd.
Qian'an Shougang Xingkuang Industrial Co.,
Accounts receivable 8,201,983.52 291,990.61 6,617,509.64 235,583.34
Ltd.
Beijing Shougang Mining Construction Co.,
Accounts receivable -- -- 9,958.00 349.19
Ltd.
Accounts receivable Tangshan Shougang Jingtang Xishan Coking -- -- 734.5 218.7
159
Beijing Shougang Co. Ltd Semi-Annual Report 2023
As at 30 June 2023 As at 31 December 2022
Item Related party
Book balance Provision for bad debts Book balance Provision for bad debts
Co., Ltd.
Beijing Shougang Machinery&Electric Co.,
Accounts receivable 100,000.00 14,676.06 100,000.00 3,561.33
Ltd.
Beijing Shouke Xingye Engineering
Accounts receivable 400,000.00 119,101.26 400,000.00 112,210.59
Technology Co., Ltd.
Accounts receivable Tangshan Tangcao Railway Co., Ltd. 3,694,628.46 131,528.77 3,523,028.46 125,419.81
Accounts receivable Beijing Shougang Construction Group Co., Ltd. -- -- 37,260.00 1,306.55
Beijing Shougang Automation Information
Accounts receivable 471,150.00 140,286.39 771,150.00 27,041.00
Technology Co., Ltd.
Accounts receivable Jingtang Port Shougang Terminal Co., Ltd. 177,403.20 6,315.55 -- --
Accounts receivable Guangzhou Jinghai Shipping Co., Ltd. 13,106,921.61 -- -- --
Accounts receivable Beijing Shoucheng Packaging Service Co., Ltd. 336,403.98 11,980.47 -- --
Accounts receivable Beijing Shougang Shape Metal Co., Ltd. 52,282.54 1,861.96 -- --
Prepayments Tonghua Iron and Steel Co., Ltd. 15,957,236.47 -- 20,254,497.50 --
Tangshan Caofeidian Ganglian Logistics Co.,
Prepayments 250,891,785.89 -- 87,043,657.93 --
Ltd.
Prepayments Tangshan Caofeidian Industry Port Co., Ltd. -- -- 1,760,930.71 --
Beijing Jinanyuan Automobile Transportation
Prepayments 1,393,617.12 -- 4,996,705.97 --
Co., Ltd.
Prepayments Shougang Group Co., Ltd. 910,421,696.63 -- 74,027,519.11 --
Prepayments Cmi Engineering (Beijing) Co., Ltd. -- -- 50,850.00 --
China Shougang International
Prepayments 7,247,815.06 -- 7,633,348.80 --
Trade&Engineering Corporation
160
Beijing Shougang Co. Ltd Semi-Annual Report 2023
As at 30 June 2023 As at 31 December 2022
Item Related party
Book balance Provision for bad debts Book balance Provision for bad debts
Tianjin Shougang Steel
Prepayments -- -- 4,171,441.39 --
Processing&Distribution Co., Ltd.
Prepayments Shougang Changzhi Steel&Iron Co., Ltd. 7,609.04 -- 7,609.04 --
Dividend receivable Guangzhou Jinghai Shipping Co., Ltd. 200,000.00 -- 200,000.00 --
Tangshan Zhonghong Carbon Chemical Co.,
Other current assets 300,294,216.36 118,133,658.14 285,013,761.81 118,133,658.14
Ltd.
161
Beijing Shougang Co. Ltd Semi-Annual Report 2023
(2) Payables to related parties
Item Related party As at 30 June 2023 As at 31 December 2022
Accounts payable Shougang Group Co., Ltd. 611,122,119.38 655,732,407.11
Accounts payable Shougang Mining Corporation 4,282,630,457.79 4,125,595,337.09
Accounts payable Qian'an Sinochem Coal Chemical Industrial Co., Ltd. 285,839,236.62 470,845,391.07
Tangshan Shougang Jingtang Xishan Coking Co.,
Accounts payable 2,283,598,733.85 1,859,004,046.73
Ltd.
Accounts payable Beijing Shoucheng Packaging Service Co., Ltd. -- 13,350,654.51
Beijing Shougang Automation Information
Accounts payable 192,778,148.92 182,889,510.51
Technology Co., Ltd.
Accounts payable Beijing Shougang Construction Group Co., Ltd. 537,392,157.34 618,622,996.56
Accounts payable Beijing Shoujian Equipment Maintenance Co., Ltd. 30,131,534.47 25,594,363.58
Accounts payable Beijing Shougang Landscaping Co., Ltd. 19,979,233.57 23,883,634.56
Accounts payable Beijing Shougang Catering Co., Ltd. 1,294,140.81 1,327,588.66
Accounts payable Beijing Huaxia Technology Co., Ltd. 7,003,905.42 5,762,815.76
Accounts payable Qinhuangdao Shougang Machinery Co., Ltd. 65,898,841.91 64,415,151.43
Accounts payable Beijing Shougang Machinery&Electric Co., Ltd. 126,109,195.02 162,405,176.47
Accounts payable Beijing Shouye Instruments&Meters Co., Ltd. 14,969,828.46 13,442,009.63
Accounts payable Tianjin Shougang Electric Equipment Co., Ltd. 7,887,602.99 9,099,757.38
Accounts payable Beijing Shougang Gas Co., Ltd. 71,826,275.30 66,619,195.56
Beijing Shougang International
Accounts payable 254,019,444.70 310,818,935.04
Engineering&Technology Co., Ltd.
Beijing Jinanyuan Automobile Transportation Co.,
Accounts payable 15,403,891.85 15,100,355.24
Ltd.
Lujiashan Limestone Mining of Shougang Beijing
Accounts payable 207,702,766.72 158,972,406.25
Co., Ltd.
Accounts payable Qian'an Shougang Equipment Structure Co., Ltd. 75,939,831.02 85,360,764.98
Accounts payable Yantai Shougang Mining 3D Co., Ltd. 93,301.72 313,811.63
Beijing Shoujian Hengji Construction Engineering
Accounts payable 1,445,062.82 1,602,115.93
Co., Ltd.
Accounts payable Beijing Soly Technology Co., Ltd. 228,488.43 210,904.43
Qian'an Shouxin Automation Information
Accounts payable 24,251,856.38 25,515,132.74
Technology Co., Ltd.
Accounts payable Qian'an First Real Packaging Service Co., Ltd. 143,013,704.30 96,388,811.17
Accounts payable Beijing Shoujia Steel Construction Co., Ltd. 10,674,760.30 14,995,775.16
Accounts payable Beijing Shougang Ferroalloy Co., Ltd. 131,980,532.62 73,607,022.86
Accounts payable Beijing Shougang Materials Trading Co., Ltd. 3,012,881,194.41 426,891,995.64
Beijing Shougang Resources Comprehensive
Accounts payable 57,690,426.64 57,690,426.64
Utilization Technology Development Co., Ltd.
Accounts payable Shougang Environmental Industry Co., Ltd. 277,500.00 334,080.00
China Shougang International Trade&Engineering
Accounts payable 730,653,175.29 663,787,332.95
Corporation
Accounts payable Beijing Chengxin Engineering Supervision Co., Ltd. 7,957,308.86 6,127,851.86
Accounts payable Qinhuangdao Shounai New Material Co., Ltd 23,069,319.66 61,808,291.36
Accounts payable Tangshan Guoxing Industrial Co., Ltd. 50,405,198.32 40,465,093.70
Tangshan Caofeidian Industrial District Shouhanxin
Accounts payable 136,332,682.88 138,903,339.92
Industrial Co., Ltd.
Accounts payable Beijing Shougang Futong Elevator Co., Ltd. 225,346.75 310,319.85
Accounts payable Beijing Teyu Plate Co., Ltd. -- 85,095,430.63
Accounts payable Jingxi Shoutang Supply Chain Management Co., Ltd 926,863.54 9,289,106.10
Accounts payable Beijing Shougang Mining Construction Co., Ltd. 6,975,969.73 3,354,289.89
162
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Item Related party As at 30 June 2023 As at 31 December 2022
Accounts payable Qinhuangdao Shouqin Metal Materials Co., Ltd. 15,938,323.06 19,824,419.55
Qinhuangdao Shouqin Steel Machining&Delivery
Accounts payable 75,377.84 466,070.62
Co., Ltd.
Accounts payable Beijing Shoushe Metallurgical Technology Co., Ltd. -- 14,002.60
Accounts payable Beijing Shougang Industrial Group Co., Ltd. 15,325,916.09 24,377,193.66
Accounts payable Bejing Shougang International Travel Co., Ltd. 8,688.00 8,688.00
Beijing Shougang Yunxiang Industrial Technology
Accounts payable 1,646,329.23 3,664,099.23
Co., Ltd.
Accounts payable Qiangang Hotel. 6,739,595.28 8,662,628.97
Beijing Dingshengcheng Packaging Materials Co.,
Accounts payable 27,565,618.72 17,452,797.76
Ltd.
Accounts payable Beijing Shougang Special Steel Co., Ltd. 94,949,940.33 94,949,940.33
Accounts payable Hebei Shougang Jingtang Machinery Co., Ltd. 23,842,283.43 18,999,797.17
Ningbo Metallurgical Investigation,
Accounts payable 7,326,808.55 7,330,595.55
Design&Research Co., Ltd.
Accounts payable Qian'an Shougang Xingkuang Industrial Co., Ltd. 6,533,423.23 4,945,999.84
Beijing Thermal Zhongda Heat Exchange Equipment
Accounts payable 18,867,228.07 25,442,826.43
Co., Ltd.
Accounts payable Beijing Shouyi Mining Hospital Co., Ltd. -- 1,958,389.00
Accounts payable Beijing Shouyu Industry and Trade Co., Ltd. 5,734,439.62 7,177,859.06
PetroChina Shougang (Beijing) Petroleumsales Co.,
Accounts payable 15,696,768.02 14,973,290.67
Ltd.
Accounts payable YASKAWA Shougang Robert Co., Ltd. -- 235,384.79
Accounts payable Beijing Shoubang New Material Co., Ltd. 1,925,907.54 2,927,759.28
Beijing Xingyeda Machinery&Electric Equipment
Accounts payable 646,001.04 1,845,155.82
Manufacture Co., Ltd.
Accounts payable Chaoyang Shougang Beifang Machinery Co., Ltd. 893,561.07 931,110.35
Accounts payable Chengde Xintong Shoucheng Mining Co., Ltd. -- 851,714.56
Accounts payable Guangzhou Jinghai Shipping Co., Ltd. 100,170,229.65 102,688,729.55
Accounts payable Tangshan Caofeidian Industry Port Co., Ltd. 45,265,404.27 55,335,586.91
Accounts payable Shougang Guiyang Special Steel Co., Ltd. 6,975,000.00 6,975,000.00
Tianjin Shougang Steel Processing&Distribution Co.,
Accounts payable 930,220.49 149,948.85
Ltd.
Accounts payable Cmi Engineering (Beijing) Co., Ltd. 1,356,712.00 552,200.00
Beijing Shoutegang Yuandong Magnesium Alloy
Accounts payable 200,408.00 200,408.00
Products Co., Ltd.
Accounts payable Shougang (Qingdao) Steel Industry Co., Ltd. 966,223.85 1,545,599.81
Accounts payable Qinhuangdao Shougang Racing Valley Co., Ltd -- 95,860.00
Beijing Shougang Park Comprehensive Service Co.,
Accounts payable 14,068.00 2,300.00
Ltd.
Beijing Shougang Environmental Engineering
Accounts payable 1,109,886.20 1,109,886.20
Technology Co., Ltd.
Accounts payable Guiyang Steel Mills I/E Corp. 2,805,808.03 4,161,841.55
Qian'an Jinyu Shougang Environmental Protection
Accounts payable 4,982,477.71 5,274,968.79
Technology Co., Ltd.
Accounts payable Shougang Commercial Factoring Co., Ltd. 19,360,574.68 17,148,576.40
Tangshan Caofeidian Dunshi New Construction
Accounts payable 531,903.57 1,888,425.49
Material Co., Ltd.
Accounts payable Tangshan Shougang Malanzhuang Iron Ore Co., Ltd. 159,498,210.56 132,159,697.12
Beijing Shoutaizhongxin Science & Technology Co.,
Accounts payable 4,857,604.28 6,185,421.93
Ltd
Accounts payable Peking University Shougang Hospital 21,892.66 3,088,704.96
Accounts payable Beijing Shougang Lanzatech Co., Ltd. 13,705,740.13 --
Contract liabilities Beijing Shoucheng Packaging Service Co., Ltd. -- 53,217.02
Contract liabilities Beijing Shougang Huaxia Engineering&Technology 1,630,143.70 1,494,914.05
163
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Item Related party As at 30 June 2023 As at 31 December 2022
Co., Ltd.
Contract liabilities Beijing Beiye Functional Materials Co., Ltd. 62,368.53 34,194.22
Contract liabilities Beijing Shougang Gitane New Materials Co., Ltd. 45,093.66 45,093.66
Beijing Shouronghui Technology Development Co.,
Contract liabilities 1,752,834.01 6,564,678.23
Ltd.
Contract liabilities Beijing Shougang Machinery&Electric Co., Ltd. 13,718,819.97 9,143,010.03
Contract liabilities Beijing Shougang Construction Group Co., Ltd. 157,354.04 385,946.71
Contract liabilities Qinhuangdao Shougang Machinery Co., Ltd. 787,562.83 1,031,671.69
Tangshan Caofeidian Industrial Zone Jingtang
Contract liabilities 50,000.00 50,000.00
Industrial Co., Ltd.
Contract liabilities Tangshan Guoxing Industrial Co., Ltd. 436,549.63 --
Beijing Shougang Automation Information
Contract liabilities 3,504.15 --
Technology Co., Ltd.
Contract liabilities Qian'an First Real Packaging Service Co., Ltd. 2,958,850.05 2,164,319.43
Tangshan Caofeidian Dunshi New Construction
Contract liabilities 534,811.19 1,901,697.48
Material Co., Ltd.
Contract liabilities Beijing Shougang Industrial Group Co., Ltd. 23,723.72 --
Beijing Jinanyuan Automobile Transportation Co.,
Contract liabilities 214,144.17 341,185.21
Ltd.
Contract liabilities Qian'an Shougang Equipment Structure Co., Ltd. 544,816.53 14,753.10
Contract liabilities Qinhuangdao Shougang Plate Mill Co., Ltd. 13,028.81 13,028.81
Contract liabilities Qinhuangdao Shounai New Material Co., Ltd 1,333,453.31 182,697.15
Lujiashan Limestone Mining of Shougang Beijing
Contract liabilities 1,378,893.98 1,378,893.98
Co., Ltd.
Contract liabilities Qian'an Shougang Xingkuang Industrial Co., Ltd. 50,000.00 50,000.00
Contract liabilities Beijing Shougang Materials Trading Co., Ltd. 188,861.00 188,861.00
Contract liabilities Guizhou Bohong Industrial Co., Ltd. 50,000.00 50,000.00
Contract liabilities Beijing Shougang Mining Construction Co., Ltd. 52,088.04 52,088.04
Contract liabilities Tianjin Shougang Electric Equipment Co., Ltd. 169.19 169.19
Shougang Shuicheng Steel (Group) Saide
Contract liabilities 805.61 805.61
Construction Co., Ltd.
Contract liabilities Dachang Shougang Machinery&Electric Co., Ltd. 52,503.67 2,503.67
Contract liabilities Ningbo Shougang Zhejin Steel Co., Ltd. 25,230,297.22 18,320,032.79
Contract liabilities Guangzhou Jinghai Shipping Co., Ltd. -- 810,846.20
Suzhou Tonggang Shunye Steel Materials Processing
Contract liabilities 2,046.68 2,046.68
Distribution Co., Ltd.
Contract liabilities Beijing Shougang Shape Metal Co., Ltd. -- 995,551.60
PetroChina Shougang (Beijing) Petroleumsales Co.,
Contract liabilities 3,912,228.96 7,184,262.58
Ltd.
Contract liabilities Shougang Casey Steel Co., Ltd. 600,163.89 51,682.17
Contract liabilities Shougang (Qingdao) Steel Industry Co., Ltd. 176,799,641.10 154,086,174.29
Tianjin Shougang Steel Processing&Distribution Co.,
Contract liabilities 6,997,214.33 --
Ltd.
Contract liabilities Chaoyang Shougang Beifang Machinery Co., Ltd. 114.02 114.02
Contract liabilities Beijing Shouyu Industry and Trade Co., Ltd. 58,437.91 58,437.91
Contract liabilities Hebei Jingji Industry & Trading Co., Ltd. 187,059.69 487,472.16
Beijing Thermal Zhongda Heat Exchange Equipment
Contract liabilities 52,466.00 50,000.00
Co., Ltd.
Contract liabilities Beijing Shoujian Equipment Maintenance Co., Ltd. 52,484.00 50,000.00
Qian'an Jinyu Shougang Environmental Protection
Contract liabilities 150,984.95 111,022.04
Technology Co., Ltd.
Contract liabilities Shoujia Huanke (Qian'an) Co., Ltd 200,000.00 200,000.00
164
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Item Related party As at 30 June 2023 As at 31 December 2022
Contract liabilities Beijing Shoujia Steel Construction Co., Ltd. 95,027.11 198,653.22
Contract liabilities Beijing Huaxia Technology Co., Ltd. 50,848.96 50,000.00
Contract liabilities Beijing Jingxi Supply Chain Management Co., Ltd. -- 747,440.91
Beijing Dingshengcheng Packaging Materials Co.,
Contract liabilities 35,700.00 --
Ltd.
Contract liabilities Beijing Shougang Lanzatech Co., Ltd. 82,666.66 --
Contract liabilities Beijing Shougang Gas Tangshan Co., Ltd. 282,857.13 --
Contract liabilities Beijing Shougang Chengyun Holdings Co., Ltd 70,060.17 --
Other payables Shougang Group Co., Ltd. 56,575,231.05 56,575,231.05
Other payables Shougang Mining Corporation 12,202,944.99 796,194,091.55
Other payables Beijing Shougang Construction Group Co., Ltd. 3,450,000.00 3,450,000.00
Other payables Beijing Shougang Industrial Group Co., Ltd. 3,865,587.23 3,865,587.23
Other payables Tangshan Guoxing Industrial Co., Ltd. 4,450,973.55 4,450,973.55
Other payables Guangzhou Jinghai Shipping Co., Ltd. 57,800.00 --
Other payables Beijing Shougang Gas Co., Ltd. 1,123,099.67 1,123,099.67
Other payables Hebei Shougang Jingtang Machinery Co., Ltd. 2,776,577.52 2,776,577.52
Beijing Shouxin Jinyuan Management Consulting
Other payables 341,400,000.00 341,400,000.00
Center (Limited Partnership)
Tangshan Caofeidian Industrial Zone Jingtang
Other payables 2,910,814.91 2,910,814.91
Industrial Co., Ltd.
Other non-current
Shougang Group Co., Ltd. 4,164,819,920.40 4,532,018,467.20
liabilities
XI. Share-based payment
1. General information of share-based payment
Total equity instruments of the Company granted during the period None
Total exercised equity instruments of the Company during the period
Total invalid equity instruments of the Company during the period
Range of exercise prices and contractual remaining period for share options issued
by the Company at the end of the period
Range of exercise prices and remaining contractual maturity of other equity
instruments issued by the Company at the end of the period
2. Equity-settled share-based payment
The price of restricted stock shall be
The method of determining the fair value of equity instrument on the grant date determined at the closing price on the grant
date
The actual unlocked quantity is determined
Basis for determining the quantity of exercisable equity instruments
according to the performance assessment
Reasons for significant difference between the current estimate and previous
None
estimate
Accumulated amount of equity settled share-based payments recognized in capital
61,651,886.90
reserve
The total amount of expenses recognized for equity settled share-based payments in
23,286,765.84
this period
Note: On 29 November 2021, approved by Beijing State Owned Assets Supervision and
Administration Commission, confirmed with no objection and recorded by China Securities
Regulatory Commission, Proposal on Beijing Shougang Co., Ltd.2021 Restricted Stock Incentive
165
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Plan (Draft Amendment)and its Summary, Proposal of Beijing Shougang Co., Ltd.2021 Restricted
Stock Incentive Plan Implementation Assessment Management Method (Revised), Beijing
Shougang Co., Ltd. 's Proposal on requesting the General Meeting of Shareholders to authorize the
Board of Directors to handle matters related to 2021 Restricted stock Incentive Plan were
considered and approved at the seventh meeting of the eleventh Board of Directors and the first
extraordinary General Meeting of the year 2021 of the Company. The grant date was 9 December
2021 and a total of 64,901,800.00 restricted stock shares were granted to 386 incentive objects. The
grant price of the restricted stock is RMB3.25 per share. After the completion of subscription of this
incentive plan, as a result of additional issuance of new shares, the Company's share capital (Note
Ⅴ,34) and capital reserve (Note Ⅴ,35) increased by RMB 64,901,800.00 and RMB 146,029,050.00
respectively, and treasury shares increased by RMB 210,930,850.00. At the same time, equity
incentive repurchase obligations are recognized in RMB 210,930,850.00 in other payables (Note Ⅴ,
24). The restriction period of restricted shares granted by the incentive plan shall be 24 months, 36
months and 48 months respectively from the registration date of the corresponding partial equity
grant. The restricted shares granted under this incentive Plan shall not be transferred, used for
security or debt repayment during the restricted sale period.
The Company has provided lock-up periods and unlock-up conditions for the stock granted to the
incentive subjects by way of non-public offering, and the Company has fully recognized other
payables - restricted stock repurchase obligations and treasury share in respect of the repurchase
obligations based on the subscription amounts received. If the unlocking conditions specified in the
final Equity Incentive Plan are not met, the Company will repurchase the shares at the grant price
and write down the outstanding shares. The portion of restricted stock that meets the unlocking
conditions is offset from the treasury share.
The cost and expense recognized during the waiting period of this period is RMB 23,286,765.84,
and the consolidated capital reserve is increased by RMB 19,606,533.40 according to the
shareholding ratio of the subsidiaries.
XII. Commitments and contingencies
1. Material commitments
As at 30 June 2023, the Company has no commitments that should be disclosed.
2. Contingencies
As at 30 June 2023, the Company has no pending litigation, external guarantees or other
contingencies that should be disclosed.
XIII. Events after balance sheet date
As at 30 June 2023, the Company has no undisclosed event that should be disclosed after the
balance sheet date.
XIV. Other significant events
1. Segment information
According to internal organizational structure, management requirement and requirement of internal
reporting system, the Company divides businesses into iron and steel segment. The segment
information is determined based on the financial information required by routine internal
management of the Company. The management periodically evaluates the operating results of the
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
segment to determine its allocation of resources and evaluate the performance of the segment.
The segment information of the Company includes: iron and steel segment.
The segment information is disclosed in accordance with the accounting policies and measurement
basis used in the reports of the management, which are in line with those adopted in financial
statements.
(1) Segment profit or loss, assets and liabilities
Current period or end of current period Iron and steel Segment Offset Total
Operating revenue 57,368,096,029.37 -- 57,368,096,029.37
Including: External revenue 57,368,096,029.37 -- 57,368,096,029.37
Inter-segment revenue -- -- --
Including: Main operating revenue 55,599,122,827.83 -- 55,599,122,827.83
Cost of sales 54,320,153,167.23 -- 54,320,153,167.23
Including: Main operating cost of sales 52,725,471,888.88 -- 52,725,471,888.88
Operating expenses 1,268,214,896.36 -- 1,268,214,896.36
Operating profit/(loss) 567,287,669.42 -- 567,287,669.42
Total assets 141,596,926,689.81 -- 141,596,926,689.81
Total liabilities 88,815,227,194.05 -- 88,815,227,194.05
Supplementary information:
1.Capital expenditure 702,577,750.33 -- 702,577,750.33
2.Depreciation and amortisation 3,943,237,411.39 -- 3,943,237,411.39
3.Non-cash expenses other than depreciation and amortisation -- -- --
4. 4.Assets impairment losses 322,757,792.70 -- 322,757,792.70
Prior period or end of prior period Iron and steel Segment Offset Total
Operating revenue 63,194,115,447.56 -- 63,194,115,447.56
Including: External revenue 63,194,115,447.56 -- 63,194,115,447.56
Inter-segment revenue -- -- --
Including: Main operating revenue 61,279,976,461.63 -- 61,279,976,461.63
Cost of sales 58,297,262,097.99 -- 58,297,262,097.99
Including: Main operating cost of sales 56,684,778,266.42 -- 56,684,778,266.42
Operating expenses 1,484,982,722.35 -- 1,484,982,722.35
Operating profit/(loss) 2,420,035,568.50 -- 2,420,035,568.50
Total assets 143,173,445,003.35 -- 143,173,445,003.35
Total liabilities 93,101,365,568.38 -- 93,101,365,568.38
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Prior period or end of prior period Iron and steel Segment Offset Total
Supplementary information:
1.Capital expenditure 1,280,730,705.51 -- 1,280,730,705.51
2.Depreciation and amortisation 3,880,281,784.23 -- 3,880,281,784.23
3.Non-cash expenses other than depreciation and amortisation -- -- --
4.Assets impairment losses 97,657,975.55 -- 97,657,975.55
(2) Other segment information
① External revenue of goods and services
Item Current period Prior period
Iron and steel 57,368,096,029.37 63,194,115,447.56
② Geographical information
No more details of geographical information should be disclosed as the production and sales of the
Company are all located in mainland China.
2. Lease
The Company as lessee
Additional information on rental fees
① The Company simplifies the treatment of short-term leases and low-value leases, and
unrecognized right-of-use assets and lease liabilities. The information of short-term leases,
low-value leases and variable lease payments measured outside lease liabilities included in the
current profit and loss are as follows:
Item Current period
Short-term leases 1,215,937.69
Low-value leases --
Variable lease payments measured outside lease liabilities --
The Company as lessor
Formation of operating lease:
② lease revenue, and separately disclose income related to variable lease payments not included in
lease receipts;
Item Current period
Lease revenue 16,974,910.21
Income related to variable lease payments not included in lease receipts --
③ The amount of undiscounted lease receipts that will be received in each of the five consecutive
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
fiscal years after the balance sheet date and the total amount of undiscounted lease receipts that will
be received in the remaining fiscal years.
Item Closing balance
Within 1 year 20,333,329.94
1 – 2 years 5,205,802.28
2 – 3 years 4,271,706.28
Over 3 years --
Total 29,810,838.50
XV. Notes to the financial statements of parent company
1. Notes receivable
2023.06.30
Item
Book balance Bad debt provision Net carrying value
Bank acceptances -- -- --
Commercial acceptances 858,483,273.79 858,483.27 857,624,790.52
Total 858,483,273.79 858,483.27 857,624,790.52
2022.12.31
Item
Book balance Bad debt provision Net carrying value
Bank acceptances -- -- --
Commercial acceptances 899,539,689.52 899,539.69 898,640,149.83
Total 899,539,689.52 899,539.69 898,640,149.83
(1) The pledged notes receivable of the Company at the end of the year
Item Amount pledged as of 30 June 2023
Commercial acceptances 6,521,200.88
(2) Outstanding endorsed or discounted notes that have not matured at the end of the year
Amount derecognized as of June 3 Amount not-derecognized as of June 30,
Item
0, 2023 2023
Bank acceptances -- --
Commercial acceptances -- 808,358,430.36
Total -- 808,358,430.36
(3) Notes transferred to accounts receivable due to non-performance of the issuers at the end of the
year
Item Amount transferred to accounts receivable as of June 30, 2023
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Item Amount transferred to accounts receivable as of June 30, 2023
Commercial acceptance notes 2,000,000.00
(4) Classified by bad debt provision method
2023.06.30
Category Book balance Bad debt provision
Net carrying
Expected value
Amount Proportion (%) Amount
credit loss (%)
Assessed bad debt
-- -- -- -- --
provision individually
Assessed bad debt
provision in portfolios
858,483,273.79 100.00 858,483.27 0.10 857,624,790.52
based on credit risk
characteristics
Portfolio 1 -- -- -- -- --
Portfolio 2 858,483,273.79 100.00 858,483.27 0.10 857,624,790.52
Total 858,483,273.79 100.00 858,483.27 0.10 857,624,790.52
Continued:
2022.12.31
Category Book balance Bad debt provision
Net carrying
Expected value
Amount Proportion (%) Amount
credit loss (%)
Assessed bad debt
-- -- -- -- --
provision individually
Assessed bad debt
provision in portfolios
899,539,689.52 100.00 899,539.69 0.10 898,640,149.83
based on credit risk
characteristics
Group 1 -- -- -- -- --
Group 2 899,539,689.52 100.00 899,539.69 0.10 898,640,149.83
Total 899,539,689.52 100.00 899,539.69 0.10 898,640,149.83
(5) Provision, recovery or reversal of bad debt
Item Bad debt provision
Opening balance 899,539.69
Provision -41,056.42
Recovery or reversal --
Written-off --
As at 31 December 2022 858,483.27
(6) The Company has no notes receivable actually written off in reporting period.
2. Accounts receivable
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
(1) Disclosed by ageing of account receivables
Ageing 2023.06.30 2022.12.31
Within 1 year 1,708,247,806.47 1,398,579,212.14
1 – 2 years -- --
2 – 3 years -- 2,197,756.62
Over 3 years 2,000,000.00 8,578,211.62
Subtotal 1,710,247,806.47 1,409,355,180.38
Less: provision for bad debts 4,416,655.51 12,694,254.85
Total 1,705,831,150.96 1,396,660,925.53
(2) Disclosed by bad debt provision
2023.06.30
Book balance Bad debt provision
Category
Net carrying
Expected
Proportion value
Amount Amount credit loss
(%)
(%)
Assessed bad debt
2,000,000.00 0.11 2,000,000.00 100.00 --
provision individually
Assessed bad debt
provision in portfolios
1,708,247,806.47 99.89 2,416,655.51 0.14 1,705,831,150.96
based on credit risk
characteristics
Portfolio of aging analysis 65,627,677.14 3.84 2,416,655.51 3.68 63,211,021.63
Portfolio of consolidation
1,642,620,129.33 96.05 -- -- 1,642,620,129.33
scope
Total 1,710,247,806.47 100.00 4,416,655.51 0.26 1,705,831,150.96
Continued:
2022.12.31
Book balance Bad debt provision
Category
Net carrying
Expected
Proportion value
Amount Amount credit loss
(%)
(%)
Assessed bad debt
8,578,211.62 0.61 8,578,211.62 100.00 --
provision individually
Assessed bad debt
provision in portfolios
1,400,776,968.76 99.39 4,116,043.23 0.29 1,396,660,925.53
based on credit risk
characteristics
Portfolio of aging analysis 71,836,571.46 5.10 4,116,043.23 5.73 67,720,528.23
Portfolio of consolidation
1,328,940,397.30 94.29 -- -- 1,328,940,397.30
scope
Total 1,409,355,180.38 100.00 12,694,254.85 0.90 1,396,660,925.53
Assessed bad debt provision individually：
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
2023.06.30
Accounts receivable (by
debtor) Expected credit loss Reason for
Book balance Bad debt provision
(%) bad debts
Accounts receivable over
-- -- -- --
3 years
Recourse for overdue
Recourse for overdue bills 2,000,000.00 2,000,000.00 100.00
bills
Total 2,000,000.00 2,000,000.00 100.00
Continued:
2022.12.31
Accounts receivable (by
debtor) Expected credit loss Reason for
Book balance Bad debt provision
(%) bad debts
Accounts receivable over
6,578,211.62 6,578,211.62 100.00 Long aging
3 years
Recourse for overdue
Recourse for overdue bills 2,000,000.00 2,000,000.00 100.00
bills
Total 8,578,211.62 8,578,211.62 100.00
Assessed bad debt provision in portfolios：
2023.06.30
Item
Accounts receivable Bad debt provision Expected credit loss (%)
Within 1 year 1,708,247,806.47 2,416,655.51 0.14
1 – 2 years -- -- --
2 – 3 years -- -- --
Over 3 years -- -- --
Total 1,708,247,806.47 2,416,655.51 0.14
Continued:
2022.12.31
Item
Accounts receivable Bad debt provision Expected credit loss (%)
Within 1 year 1,398,579,212.14 2,480,070.86 0.18
1 – 2 years -- -- --
2 – 3 years 2,197,756.62 1,635,972.37 74.44
Over 3 years -- -- --
Total 1,400,776,968.76 4,116,043.23 0.29
(3) Provision, recovery or reversal of bad debt
Item Bad debt provision
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Item Bad debt provision
Opening balance 12,694,254.85
Provision --
Recovery or reversal 8,277,599.34
Written-off --
As at 31 December 2022 4,416,655.51
(4) The Company has no accounts receivable write-off during the reporting period.
(5) The top five accounts receivable classified by debtors are as follows:
During the year, the total amount of the top five accounts receivable collected by debtors at the end
of the period is RMB 1,700,813,464.53, accounting for 99.45% of the total amount of accounts
receivable at the end of the period, and the total amount of the corresponding bad debt provision at
the end of the period is RMB 2,225,140.23.
Closing balance of Closing balance of
Company Name Percentage %
accounts receivable provision
Beijing Shougang Cold Rolling Co., Ltd. 1,605,328,052.61 93.87 --
Shougang Zhixin Qian'an Electromagnetic
35,235,362.16 2.06 --
Materials Co., Ltd.
Qian'an Shoujia Construction Material Co., Ltd. 53,221,363.06 3.11 1,974,825.22
Nantong Zhongji Energy Equipment Co., Ltd.. 3,073,439.61 0.18 109,455.45
Zhangjiagang CIMC Sanctum Cryogenic
3,955,247.09 0.23 140,859.56
Equipment Co.,Ltd.
Total 1,700,813,464.53 99.45 2,225,140.23
3. Financing receivables
Item 2023.06.30 2022.12.31
Notes receivable 1,815,794,055.75 835,526,685.55
Less：Other comprehensive income - fair value changes -- --
Closing balance of fair value 1,815,794,055.75 835,526,685.55
(1) Classified by bad debt provision method
2023.06.30
Book balance Bad debt provision
Category
Expected Net carrying value
Proportion
Amount Amount credit loss
(%)
(%)
Assessed bad debt provision
individually
Assessed bad debt provision
in portfolios
1,816,157,287.21 100.00 363,231.46 0.02 1,815,794,055.75
based on credit risk
characteristics
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
2023.06.30
Book balance Bad debt provision
Category
Expected Net carrying value
Proportion
Amount Amount credit loss
(%)
(%)
Portfolio 1 1,816,157,287.21 100.00 363,231.46 0.02 1,815,794,055.75
Portfolio 2 -- -- -- -- --
Total 1,816,157,287.21 100.00 363,231.46 0.02 1,815,794,055.75
Continued:
2022.12.31
Book balance Bad debt provision
Category
Expected Net carrying value
Proportion
Amount Amount credit loss
(%)
(%)
Assessed bad debt provision
individually
Assessed bad debt provision
in portfolios
835,693,824.31 100.00 167,138.76 0.02 835,526,685.55
based on credit risk
characteristics
Portfolio 1 835,693,824.31 100.00 167,138.76 0.02 835,526,685.55
Portfolio 2 -- -- -- -- --
Total 835,693,824.31 100.00 167,138.76 0.02 835,526,685.55
(2) Provision, recovery or reversal of bad debt
Item Bad debt provision
Opening balance 167,138.76
Provision 196,092.70
Recovery or reversal --
Written-off --
As at 31 December 2022 363,231.46
(3) The company has no pledged notes receivable at the end of the year
(4) Outstanding endorsed or discounted notes that have not matured at the end of the year
Amount derecognized as of Amount not-derecognized as of
Item
June 30, 2023 June 30, 2023
Bank acceptance notes 5,116,865,601.81 --
Commercial acceptance notes -- --
Total 5,116,865,601.81 --
4. Other receivables
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Item 2023.06.30 2022.12.31
Dividends receivable -- 9,713,244.06
Other receivables 1,174,163,351.39 1,154,281,751.62
Total 1,174,163,351.39 1,163,994,995.68
(1) Dividends receivable
Item 2023.06.30 2022.12.31
Beijing Shougang New Energy Automobile Material
-- 9,713,244.06
Technology Co., Ltd.
Less: Bad debt provision -- --
Total -- 9,713,244.06
(2) Other receivables
① Disclosed by the ageing of other receivables
Ageing 2023.06.30 2022.12.31
Within 1 year 1,174,201,613.03 1,154,320,981.69
1 – 2 years -- --
2 – 3 years -- --
Over 3 years -- --
Subtotal 1,174,201,613.03 1,154,320,981.69
Less: provision for bad debts 38,261.64 39,230.07
Total 1,174,163,351.39 1,154,281,751.62
② Disclosed by nature of other receivables
2023.06.30
Item
Book balance Provision for bad debts Carrying value
Petty cash 251,232.86 12,561.64 238,671.22
Deposits 500,000.00 25,000.00 475,000.00
Due from other companies 14,000.00 700.00 13,300.00
Due from intra-companies 1,173,436,380.17 -- 1,173,436,380.17
Total 1,174,201,613.03 38,261.64 1,174,163,351.39
Continued:
2022.12.31
Item
Book balance Provision for bad debts Carrying value
Petty cash 282,590.68 14,129.53 268,461.15
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
2022.12.31
Item
Book balance Provision for bad debts Carrying value
Deposits 500,000.00 25,000.00 475,000.00
Due from other companies 2,010.86 100.54 1,910.32
Due from intra-companies 1,153,536,380.15 -- 1,153,536,380.15
Total 1,154,320,981.69 39,230.07 1,154,281,751.62
③ Provision for bad debts
As at year-end, bad debts provision for Phase I:
Expected credit loss
Carrying
Category Book balance within 12 months Provisions Reasons
value
(%)
Assessed bad debt provision
-- -- -- --
individually
Assessed bad debt provision in
1,174,201,613.03 -- 38,261.64 1,174,163,351.39
portfolios
Petty cash and deposits 751,232.86 5.00 37,561.64 713,671.22
Due from other companies 14,000.00 5.00 700.00 13,300.00
Due from intra-companies 1,173,436,380.17 -- -- --
Total 1,174,201,613.03 -- 38,261.64 1,174,163,351.39
As at year-end, the Company has no other receivables in Phase II.
As at year-end, the Company has no other receivables in Phase III.
As at 31 December 2022, bad debts provision for Phase I:
Expected credit loss
Carrying
Category Book balance within 12 months Provisions Reasons
value
(%)
Assessed bad debt provision
-- -- -- --
individually
Assessed bad debt provision in
1,154,320,981.69 -- 39,230.07 1,154,281,751.62
portfolios
Petty cash and deposits 782,590.68 5.00 39,129.53 743,461.15
Due from other companies 2,010.86 5.00 100.54 1,910.32
Due from intra-companies 1,153,536,380.15 -- -- 1,153,536,380.15
Total 1,154,320,981.69 -- 39,230.07 1,154,281,751.62
As at 31 December 2022, the Company has no other receivables in Phase II.
As at 31 December 2022, the Company has no other receivables in Phase III.
④ Provision, recovery or reversal of bad debt
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Phase I Phase II Phase III
Expected credit loss
Provision for bad debts Expected credit Expected credit loss Total
over the lifetime
loss within 12 over the lifetime (no
(credit impairment
months credit impairment)
occurred)
Opening balance 39,230.07 -- -- 39,230.07
Changes during the year:
-- Shift to Phase II -- -- -- --
-- Shift to Phase III -- -- -- --
-- Back to Phase II -- -- -- --
-- Back to Phase I -- -- -- --
Provision -- -- -- --
Reversal 968.43 -- -- 968.43
Converse -- -- -- --
Written-off -- -- -- --
Other movements -- -- -- --
Closing balance 38,261.64 -- -- 38,261.64
⑤ No write-off of provision for bad debts during the reporting period.
⑥ The top five other receivables classified by debtors are as follows:
Closing
Percentage
Company Name Nature of transaction Closing balance Ageing balance
(%)
of provisions
Shougang Jingtang United Iron & Due from Within 1
1,167,436,380.17 99.42 --
Steel Co., Ltd. intra-companies year
Shenyang Shougang Steel Processing Due from Within 1
6,000,000.00 0.51 --
and Distribution Co., Ltd. intra-companies year
China Petroleum Materials Company Within 1
Deposits 500,000.00 0.04 25,000.00
Limited year
Within 1
Petty cash Petty cash 251,232.86 0.02 12,561.64
year
Total 1,174,187,613.03 99.99 37,561.64
5. Long-term equity investments
2023.06.30 2022.12.31
Item Provision for Provision for
Book balance Carrying value Book balance Carrying value
impairment impairment
Investments in
36,634,711,962.26 -- 36,634,711,962.26 36,621,384,419.98 -- 36,621,384,419.98
subsidiaries
Investment in
941,236,862.86 -- 941,236,862.86 1,066,506,040.90 -- 1,066,506,040.90
associates
Total 37,575,948,825.12 -- 37,575,948,825.12 37,687,890,460.88 -- 37,687,890,460.88
(1) Investments in subsidiaries
177
Beijing Shougang Co. Ltd Semi-Annual Report 2023
Impairment
Provision for
Subsidiaries Opening balance Increase Decrease Closing balance at the end of
impairment
the year
Shougang Jingtang
United Iron & Steel Co., 16,308,208,739.58 10,655,175.96 -- 16,318,863,915.54 -- --
Ltd.
Beijing Shougang Cold
1,832,315,853.00 584,425.40 -- 1,832,900,278.40 -- --
Rolling Co., Ltd.
Qian'an Shougang
Metallurgical 1,900,000.00 -- -- 1,900,000.00 -- --
Technology Co., Ltd.
Shougang Zhixin
Qian'an Electromagnetic 7,486,106,290.71 1,006,003.44 -- 7,487,112,294.15 -- --
Materials Co., Ltd.
Beijing Shougang New
Energy Automobile
450,157,812.20 36,418.20 -- 450,194,230.40 -- --
Material Technology
Co., Ltd.
Beijing Shougang Steel
Trading Investment 10,542,695,724.49 1,045,519.28 -- 10,543,741,243.77 -- --
Management Co., Ltd.
Total 36,621,384,419.98 13,327,542.28 -- 36,634,711,962.26 -- --
Note: the long-term equity investments of RMB 13,327,542.28 was increased due to equity
incentive during the reporting period.
(2) Investments in associates
Changes during the year
Impairment
Associates Opening balance Investment Closing balance at the end of
Other Other the year
income under Cash Provision for
Increase Decrease comprehensive equity Others
the equity dividend impairment
income movement
method
Qian'an Sinochem
Coal Chemical 891,510,510.32 -- -- -129,331,594.55 -- 1,142,891.97 -- -- -- 763,321,807.74 --
Industrial Co., Ltd.
Beijing Shouxin
Jinyuan
Management
122,430,402.99 -- -- 80,036.00 -- -- -- -- -- 122,510,438.99 --
Consulting Center
(Limited
Partnership)
Beijing
Dingshengcheng
16,830,558.74 -- -- 2,787,741.21 -- -- -- -- -- 19,618,299.95 --
Packaging
Materials Co., Ltd.
Qian'an Jinyu
Shougang
Environmental
35,734,568.85 -- -- 51,747.33 -- -- -- -- -- 35,786,316.18 --
Protection
Technology Co.,
Ltd.
Total 1,066,506,040.90 -- -- -126,412,070.01 -- 1,142,891.97 -- -- -- 941,236,862.86 --
6. Operating revenue and costs of sales
(1) Operating revenue and costs of sale
Current period Prior period
Item
Revenue Cost of sales Revenue Cost of sales
Main business 19,255,985,540.04 18,475,904,244.24 20,542,603,095.03 19,898,779,133.82
Other business 617,166,604.49 541,966,568.64 541,807,992.62 423,733,697.84
Total 19,873,152,144.53 19,017,870,812.88 21,084,411,087.65 20,322,512,831.66
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
(2) Operating revenue and operating costs of sale by product
Current period Prior period
Product type
Revenue Cost of sales Revenue Cost of sales
Main business:
Billet 137,297,135.04 134,524,608.66 302,806,719.26 255,427,599.98
Hot rolled 18,765,347,188.22 18,004,030,284.51 19,875,237,278.37 19,290,178,373.75
Cold rolled 90,136,314.48 68,084,185.09 -- --
Other steel products 263,204,902.30 269,265,165.98 364,559,097.40 353,173,160.09
Subtotal 19,255,985,540.04 18,475,904,244.24 20,542,603,095.03 19,898,779,133.82
Other business:
Power 354,823,601.91 401,754,301.78 294,902,506.73 329,556,855.25
Solid waste 40,318,807.89 38,195,413.28 4,482,609.21 3,532,508.82
Others 222,024,194.69 102,016,853.58 242,422,876.68 90,644,333.77
Subtotal 617,166,604.49 541,966,568.64 541,807,992.62 423,733,697.84
Total 19,873,152,144.53 19,017,870,812.88 21,084,411,087.65 20,322,512,831.66
(3) Breakdown of operating revenue
Item Current period
Main operating revenue 19,255,985,540.04
Including: recognized at a certain point 19,255,985,540.04
Recognized during a certain period of time --
Other revenue 617,166,604.49
Total 19,873,152,144.53
7. Investment income
Item Current period Prior period
Investment income from long-term investment under cost method 330,895,603.66 220,454,893.31
Investment income from long-term investment under equity method -126,412,070.01 -18,896,580.08
Dividend from other equity instruments investments 7,412,132.80 2,812,400.00
Interest income from entrusted loans 2,197,935.28 46,943.59
Total 214,093,601.73 204,417,656.82
XVI. Supplementary information
1. Non-recurring gains or losses
Item Current period Note
Gains or losses on disposal of non-current assets -2,234,959.49
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Beijing Shougang Co. Ltd Semi-Annual Report 2023
Item Current period Note
Government grants recognized in profit or loss during reporting period
(excluding those close related to the Company’s normal business,
26,836,052.96
conforming to the national policies and regulations and enjoying
ongoing fixed amount or quantity according to certain standard)
Current net profit or loss of subsidiary from the beginning of the period
--
to the date of the combination under the same control
Gains or losses from external entrusted loans 5,922,896.67
Non-operating income/(expenses) except the above 1,156,972.21
Other items that conform to the definition of non-recurring profit or loss --
Total non-recurring gains or losses 31,680,962.35
Less: income tax effect on non-recurring gains or losses 2,483,528.09
Net non-recurring gains or losses 29,197,434.26
Less: non-recurring gains or losses attributable to non-controlling
3,918,049.35
interests of the Company (after tax)
Non-recurring gains or losses attributable to shareholders of the
25,279,384.91
Company
2. Return on net assets and earnings per share
Weighted average Earnings per share
Profit of reporting period
return on net assets % Basic Diluted
Net profit/ (loss) attributable to shareholders of the
0.84 0.0548 0.0548
company
Net profit/ (loss) attributable to shareholders of the
0.79 0.0515 0.0515
Company excluding non-recurring gains or losses
Board of Directors of Beijing Shougang Company Limited
10 August 2023
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