Bengang Steel Plates Co., Ltd. The 1st Quarterly Report 2010 (Full Text)
1
Bengang Steel Plates Co., Ltd.
The 1st Quarterly Report 2010 (Full Text)
§1 Important Declaration
1.1 The Board of Directors and the directors of the Company guarantee that there are no significant
omissions, fictitious or misleading statements carried in the Report and we will accept individual and joint
responsibilities for the truthfulness, accuracy and completeness of the Report.
1.2 Directors other than the followings presented at the Board Meeting on which this report was examined:
Name of the director
absented Position Reason for not presenting the meeting Name of consignee
Li Kai Independent
Director On business trip Wang Yiqiu
1.3 The financial statements carried in this report are not audited.
1.4 Chairman of the Board – Mr. Yu Tianchen, the Chief Financial Officer and General Manager– Mr. Cao
Aimin, and Head of Accounting Dept. – Mr. Zuo Zhanguo hereby declare: the authenticity and completeness of
the report are guaranteed.
§2 Company Profile
2.1 Financial highlights
In RMB Yuan
Ended this report
term Ended previous year Changed by (%)
Gross Assets (RMB) 35,386,745,539.93 34,821,686,467.03 35,386,745,539.93
Owners’ equity attributable to the shareholders of the listed company
(yuan) 14,551,338,828.86 14,124,642,552.32 14,551,338,828.86
Capital shares (shares) 3,136,000,000.00 3,136,000,000.00 3,136,000,000.00
Net asset per share attributable to the shareholders of the listed
company (Yuan/share) 4.6401 4.5040 4.6401
This report term Same period last
year Changed by (%)
Turnover (yuan) 10,494,187,406.28 8,449,109,927.05 24.20%
Net profit attributable to shareholders of the listed company (yuan) 372,266,276.54 43,834,535.90 749.25%
Net Cash flow generated by business operation (RMB) 932,583,770.26 2,091,911,058.43 -55.42%
Net Cash flow per share generated by business operation
(yuan/share) 0.30 0.67 -55.22%
Basic earnings per share (Yuan/share) 0.1187 0.0140 747.86%
Diluted earnings per share (Yuan/share) 0.1187 0.0140 747.86%
Weighted average net
income/asset ratio (%) 2.59% 0.28% 2.31%
Weighted average net
income/asset ratio less non-recurring gain/loss(%) 2.57% 0.27% 2.30%Bengang Steel Plates Co., Ltd. The 1st Quarterly Report 2010 (Full Text)
2
Non-recurring gain and loss items
Amount of the period from the
beginning of year to the end of
report term
Gain/loss of non-current assets 191,676.33
Gain/loss from debt reorganization 2,229,189.99
Other non-business income and expenditures other than the above 216,139.85
Influenced amount of income tax -659,251.54
Total 1,977,754.63
Statement on non-recurring gain/loss accounts
None
2.2 Total of shareholders and the top 10 holders of unconditional shares
In shares
Total shareholders at the end of the report period
(accounts) 71,269
Top ten holders of the shares without subscription limitation
Full name of shareholder Amount of unconditional shares held at
the end of report term Categories
Benxi Steel (Group) Ltd. 536,800,000 RMB common shares
DREYFUS PREMIER INVESTMENT FDS
INC.-DREYFUS GREATER CHINA FD 48,000,855 Foreign shares placed in domestic
exchange
GOVERNMENT OF SINGAPORE INV. CORP.-
A/C "C" 21,250,780 Foreign shares placed in domestic
exchange
NOMURA TST N BK CO.,LTD ATTF ASIA
ATTR DIV STK FD MTH FD 16,697,887 Foreign shares placed in domestic
exchange
GSIC A/C MONETARY AUTHORITY OF
SINGAPORE 10,446,546 Foreign shares placed in domestic
exchange
RENAISSANCE CHINA PLUS FUND 7,760,556 Foreign shares placed in domestic
exchange
Zhou Jie 7,300,000 Foreign shares placed in domestic
exchange
MEGA INL COM BK CO.,LTD.,I ITS C A MS
CU O CATHAY MANDARIN F 6,746,546 Foreign shares placed in domestic
exchange
CREDIT SUISSE (HONG KONG) LIMITED 5,829,634 Foreign shares placed in domestic
exchange
KOREA EXCHANGE BANK(DB CHINA
EQUITY FUND) 5,590,226 Foreign shares placed in domestic
exchangeBengang Steel Plates Co., Ltd. The 1st Quarterly Report 2010 (Full Text)
3
§3 Significant Events
3.1 Details and causations of major change in major accounting subjects and financial indices
√ applicable □ not applicable
* Items changed by over 30% comparing with the end of 2009 in the consolidated financial statement\
I. Balance Sheet Items Rate of change Cause of change
Notes receivable 89.00% Increase of bank notes received
Notes payable -50.82% Due and cashing of notes
Tax payable 108.76% Increase of VAT payable
Other account payable 100.50% Increase settlement
Non-current liability due in 1 year -80.88% Settlement of non-current liabilities due in one year
Long-term borrowings 56.45% Increase of bank loans
Special payable 818.82% Receiving of special fund
* Items changed by over 30% comparing with Jan-Mar 2009 in the consolidated financial statement
II. Income Statement Items Rate of change Cause of change
Business tax and surcharge 369.87% Increase of VAT payable
Sales expense 35.39% Increase of freight by increase of export
Non-operational income 35.46% Increase of gain from debt reorganizing
Income tax expenses -87.23% Loss of the parent company in previous term, no income tax to be provided
3.2 Progress of significant events, their influence, countermeasures, and analysis
□applicable √ not applicable
3.3 Fulfilling of commitment issues made by the Company, shareholder, or substantial controller
√ applicable □ not applicable
Commitments The
undertaker Content of Commitments Status of fulfilling
Commitment in share
equity relocation
Benxi Steel
(Group)
Ltd.
(1) Since the date when the right of trading being granted, the
controlling shareholder shall not put the shares it holds in the market
within at least 24 months. While shall not sell the shares more than 5%
of the total shares held between 24 months to 36 months.
(2) The Company has issued new A shares privately to Bengang Group
to purchase its steel & iron assets. Bengang Group committed not to
put the newly placed shares in the market or sell to others in 36 months
since the date when the share registration is done. (Except for
transferring to strategic investors by ways approved by the national
policies, however the undertaker should takeover the commitment
made by Bengang Group.)
(3) From completion day of this acquisition up to the end of 2010,
Bengang Group will hold not lower than 65% of the Company’s shares
(Except for transferring to strategic investors by ways approved by the
national policies, however the undertaker should takeover the
commitment made by Bengang Group.)
(4) When Bengang disposes or transfers the Company’s shares before
2010, the transaction price shall not be lower than the net asset per
share provided by the latest auditing report. Bengang Group committed
to put the gains from transferring or disposing of the shares to the
Company if the shares were transferred or disposed with violating of
the above commitments.
(5) Bengang Group promises to compensate other shareholders’ losses
The commitments are
under processing at
present and no
breaching of
commitment has
occurred.Bengang Steel Plates Co., Ltd. The 1st Quarterly Report 2010 (Full Text)
4
when above commitments are not fulfilled or not completely fulfilled.
Commitment of not
to sell the shares None None None
Commitment made in
acquisition report or
equity alternation
report
None None None
Commitment made in
major asset
restructuring
None None None
Commitment made at
issuing None None None
Other commitments
(including
supplementary
commitments)
None None None
3.4 Estimated accumulative profit from the year beginning to the end of the next report period may be of
deficits; or in comparison with the same period of the previous year, give the warning of great change and
the notice to the reasons.
□applicable √ not applicable
3.5 Major events needs to be explained
3.5.1 Investment in securities
□applicable √ not applicable
3.5.2 Reception of investigations, communications, or interviews
Time/date Place Way Visitors Main content involved and material
provided
Jan 14, 2010 Office of the secretary of
Board Field research Guojin Securities etc. Production and operation situation
Jan 16, 2010 Office of the secretary of
Board Field research China Merchants
Securities Production and operation situation
Mar 5, 2010 Office of the secretary of
Board Field research CITIC Securities Production and operation situation
Mar 17, 2010 Office of the secretary of
Board Field research Xihua Asset, Yinhua
Foundation, etc. Production and operation situation
3.5.3 Statement on other significant issues
□applicable √ not applicable
3.6 Investment in derivate financial instruments
□applicable √ not applicable
3.6.1 Derivate financial instrument stock at end of report term
□applicable √ not applicableBengang Steel Plates Co., Ltd. The 1st Quarterly Report 2010 (Full Text)
5
§4 Attachments
4.1 Balance Sheet
Prepared by Bengang Steel Plates Co., Ltd. Ended March 31, 2010 RMB Yuan
Items ConBsaollaidncaete adt the ePnadre onft tceormmp any CBoanlasnoclied aatt etdh e begPinanreinngt coofm ypeaanr y
Current asset:
Monetary capital 2,054,888,391.83 1,813,548,076.32 2,842,961,050.60 2,795,043,926.41
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 3,323,802,241.25 3,205,764,120.64 1,758,593,662.55 1,692,464,732.45
Account receivable 600,464,993.27 758,550,649.06 578,413,768.04 736,508,549.83
Prepayment 1,166,891,271.92 1,150,920,926.73 1,150,044,136.73 1,134,073,791.54
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable
Other account receivable 83,343,562.18 283,553,728.18 93,630,458.88 210,275,779.87
Repurchasing of financial assets
Inventories 8,143,318,678.73 7,562,214,832.84 8,075,674,235.63 7,701,138,465.80
Non-current asset due in 1 year
Other current asset 182,211,823.73 182,211,823.73 182,211,823.73 182,211,823.73
Total of current asset 15,554,920,962.91 14,956,764,157.50 14,681,529,136.16 14,451,717,069.63
Non-current assets
Loans and payment on other’s behalf disbursed
Sellable financial asset
Expired investment in possess
Long-term receivable
Long-term share equity investment 1,843,800.00 699,708,177.17 1,843,800.00 539,708,177.17
Investment properties
Fixed assets 17,341,972,506.85 16,906,279,090.72 17,962,489,063.75 17,518,704,793.06
Construction in process 2,156,050,189.12 2,156,039,495.62 1,826,180,938.13 1,826,180,938.13
Engineering goods 120,284,324.17 120,284,324.17 137,969,772.11 137,969,772.11
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets
R&D expense
Goodwill
Long-term amortizable expenses
Differed income tax asset 211,673,756.88 210,573,821.71 211,673,756.88 210,573,821.71
Other non-current asset
Total of non-current assets 19,831,824,577.02 20,092,884,909.39 20,140,157,330.87 20,233,137,502.18
Total of assets 35,386,745,539.93 35,049,649,066.89 34,821,686,467.03 34,684,854,571.81
Current liabilities
Short-term loans 2,996,925,600.00 2,996,925,600.00 2,845,850,700.00 2,845,850,700.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
Trade off financial liabilities
Notes payable 2,084,449,591.09 2,084,449,591.09 4,238,076,393.71 4,238,076,393.71
Account payable 6,589,656,924.48 6,730,151,985.97 6,261,007,678.94 6,401,502,740.43
Prepayment received 2,498,317,292.09 2,190,929,976.47 2,538,565,736.60 2,418,365,310.33
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 226,471,271.97 226,471,271.97 245,128,249.09 245,128,249.09
Tax payable 10,269,610.83 26,420,809.35 -117,251,269.73 -99,007,033.77
Interest payable
Dividend payableBengang Steel Plates Co., Ltd. The 1st Quarterly Report 2010 (Full Text)
6
Other account payable 1,703,982,654.72 1,794,090,063.43 849,874,951.99 747,373,431.76
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year 183,518,195.69 183,518,195.69 960,040,053.18 960,040,053.18
Other current liability
Total of current liability 16,293,591,140.87 16,232,957,493.97 17,821,292,493.78 17,757,329,844.73
Non-current liabilities
Long-term borrowings 4,488,700,253.53 4,288,700,253.53 2,869,036,104.26 2,869,036,104.26
Bond payable
Long-term payable
Special payable 52,066,666.67 52,066,666.67 5,666,666.67 5,666,666.67
Expected liabilities
Differed income tax liability
Other non-recurring liabilities 1,048,650.00 1,048,650.00 1,048,650.00 1,048,650.00
Total of non-current liabilities 4,541,815,570.20 4,341,815,570.20 2,875,751,420.93 2,875,751,420.93
Total of liability 20,835,406,711.07 20,574,773,064.17 20,697,043,914.71 20,633,081,265.66
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 3,136,000,000.00 3,136,000,000.00 3,136,000,000.00 3,136,000,000.00
Capital reserves 8,790,691,134.76 8,790,691,134.76 8,736,261,134.76 8,736,261,134.76
Less: Shares in stock
Special reserves
Surplus reserves 921,277,509.22 921,277,509.22 921,277,509.22 921,277,509.22
Common risk provision
Retained profit 1,703,370,184.88 1,626,907,358.74 1,331,103,908.34 1,258,234,662.17
Different of foreign currency translation
Total of owner’s equity belong to the parent company 14,551,338,828.86 14,474,876,002.72 14,124,642,552.32 14,051,773,306.15
Minor shareholders’ equity
Total of owners’ equity 14,551,338,828.86 14,474,876,002.72 14,124,642,552.32 14,051,773,306.15
Total of liabilities and owners’ equity 35,386,745,539.93 35,049,649,066.89 34,821,686,467.03 34,684,854,571.81Bengang Steel Plates Co., Ltd. The 1st Quarterly Report 2010 (Full Text)
7
4.2 Income Statement
Prepared by: Bengang Steel Plates Co., Ltd. Jan-Mar 2010 RMB Yuan
Items CoAnmsooluidnatt eodf the CPuarrreenntt cToemrmpa ny CAomnsooulindta otef dth e PPraerveinotu cs oTmerpman y
I. Total revenue 10,494,187,406.28 10,181,297,758.26 8,449,109,927.05 8,102,956,494.72
Incl. Business income 10,494,187,406.28 10,181,297,758.26 8,449,109,927.05 8,102,956,494.72
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 10,122,735,610.03 9,815,166,412.01 8,392,949,524.81 8,051,266,545.71
Incl. Business cost 9,288,576,564.94 9,011,257,322.82 7,666,391,529.87 7,342,615,698.32
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves provided
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 45,152,650.35 44,666,286.48 9,609,595.16 9,172,466.87
Sales expense 92,125,730.39 71,626,643.42 68,046,065.01 54,326,185.52
Administrative expense 640,417,662.64 631,087,348.04 597,312,664.19 593,532,997.35
Financial expenses 56,463,001.71 56,528,811.25 51,589,670.58 51,619,197.65
Asset impairment loss
Plus: Gains from change of fair value (“-“ for loss)
Investment gain (“-“ for loss)
Incl. Investment gains from affiliates
Gains from currency exchange (“-“ for loss)
III. Operational profit (“-“ for loss) 371,451,796.25 366,131,346.25 56,160,402.24 51,689,949.01
Plus: Non business income 2,647,251.17 2,541,350.32 1,954,229.83 1,775,986.31
Less: Non-business expenses 10,245.00 12,750.00
Incl. Loss from disposal of non-current assets
IV. Gross profit (“-“ for loss) 374,088,802.42 368,672,696.57 58,101,882.07 53,465,935.32
Less: Income tax expenses 1,822,525.88 14,267,346.17 13,366,483.83
V. Net profit (“-“ for net loss) 372,266,276.54 368,672,696.57 43,834,535.90 40,099,451.49
Net profit attributable to the owners of parent
company 372,266,276.54 368,672,696.57 43,834,535.90 40,099,451.49
Minor shareholders’ equity
VI. Earnings per share:
(I) Basic earnings per share 0.1187 0.1176 0.0140 0.0128
(II) Diluted earnings per share 0.1187 0.1176 0.0140 0.0128
VII. Other misc. incomes
VIII. Total of misc. incomes 372,266,276.54 368,672,696.57 43,834,535.90 40,099,451.49
Total of misc. incomes attributable to the owners of
the parent company 372,266,276.54 368,672,696.57 43,834,535.90 40,099,451.49
Total misc gains attributable to the minor
shareholdersBengang Steel Plates Co., Ltd. The 1st Quarterly Report 2010 (Full Text)
8
4.3 Cash Flow Statement
Prepared by: Bengang Steel Plates Co., Ltd. Jan-Mar 2010 RMB Yuan
Amount of the Current Term Amount of the Previous Term
Items
Consolidated Parent company Consolidated Parent company
I. Net cash flow from business operation
Cash received from sales of products and providing
of services 6,272,699,885.46 6,204,589,512.33 7,015,736,389.00 6,938,422,529.68
Net increase of customer deposits and capital kept
for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from other
financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of trade financial asset disposal
Cash received as interest, processing fee, and
commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 83,755,682.81 80,970,050.35 50,000.00
Other cash received from business operation 131,692,667.40 130,728,641.48 31,092,843.90 30,690,733.42
Sub-total of cash inflow from business activities 6,488,148,235.67 6,416,288,204.16 7,046,879,232.90 6,969,113,263.10
Cash paid for purchasing of merchandise and
services 4,848,292,142.22 4,828,296,697.00 4,331,564,791.33 4,311,564,791.33
Net increase of client trade and advance
Net increase of savings in central bank and brother
company
Cash paid for original contract claim
Cash paid for interest, processing fee and
commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 447,460,692.62 445,110,274.67 418,821,108.38 417,325,632.38
Taxes paid 229,515,533.61 221,331,691.96 176,021,430.09 168,758,595.45
Other cash paid for business activities 30,296,096.96 22,715,699.59 28,560,844.67 21,323,785.77
Sub-total of cash outflow from business
activities 5,555,564,465.41 5,517,454,363.22 4,954,968,174.47 4,918,972,804.93
Cash flow generated by business operation,
net 932,583,770.26 898,833,840.94 2,091,911,058.43 2,050,140,458.17
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains
Net cash retrieved from disposal of fixed assets,
intangible assets, and other long-term assets 155,100.00 155,100.00
Net cash received from disposal of subsidiaries or
other operational units
Other investment-related cash received
Sub-total of cash inflow due to investment
activities 155,100.00 155,100.00Bengang Steel Plates Co., Ltd. The 1st Quarterly Report 2010 (Full Text)
9
Cash paid for construction of fixed assets,
intangible assets and other long-term assets 1,171,687,229.46 1,171,360,491.46 1,028,741,266.47 1,028,741,266.47
Cash paid as investment 160,000,000.00
Net increase of loan against pledge
Net cash received from subsidiaries and other
operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment
activities 1,171,687,229.46 1,331,360,491.46 1,028,741,266.47 1,028,741,266.47
Net cash flow generated by investment -1,171,532,129.46 -1,331,205,391.46 -1,028,741,266.47 -1,028,741,266.47
III. Cash flow generated by financing
Cash received as investment
Incl. Cash received as investment from minor
shareholders
Cash received as loans 3,065,177,302.99 3,065,177,302.99 3,101,061,486.48 3,101,061,486.48
Cash received from bond placing
Other financing-related cash received
Subtotal of cash inflow from financing activities 3,065,177,302.99 3,065,177,302.99 3,101,061,486.48 3,101,061,486.48
Cash to repay debts 2,064,442,276.00 2,064,442,276.00 2,345,619,548.01 2,345,619,548.01
Cash paid as dividend, profit, or interests 79,783,509.11 79,783,509.11 90,509,698.14 90,509,698.14
Incl. Dividend and profit paid by subsidiaries to
minor shareholders
Other cash paid for financing activities
Subtotal of cash outflow due to financing
activities 2,144,225,785.11 2,144,225,785.11 2,436,129,246.15 2,436,129,246.15
Net cash flow generated by financing 920,951,517.88 920,951,517.88 664,932,240.33 664,932,240.33
IV. Influence of exchange rate alternation on cash and
cash equivalents -22,473.44 -22,473.44 -167,969.13 -167,969.13
V. Net increase of cash and cash equivalents 681,980,685.24 488,557,493.92 1,727,934,063.16 1,686,163,462.90
Plus: Balance of cash and cash equivalents at the
beginning of term 1,372,907,706.59 1,324,990,582.40 1,851,732,015.60 1,840,720,448.33
VI. Balance of cash and cash equivalents at the end of
term 2,054,888,391.83 1,813,548,076.32 3,579,666,078.76 3,526,883,911.23
4.4 Auditors’ Report
Auditor’s opinion: not audited.
