Bengang Steel Plates Co., Ltd. Interim Report 2013
Bengang Steel Plates Co., Ltd.
Interim Report 2013
August 2013
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Bengang Steel Plates Co., Ltd. Interim Report 2013
Chapter I. Important Prompts, Table of Contents, and Definitions
The Board of Directors, the Supervisory Committee, the directors, the supervisors, and executives of the
Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the
Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of
the Report.
Directors other than the followings presented the Board Meeting at which this report was examined:
Reason for not presenting the
Name of the director absented Position Name of consignee
meeting
Li Kai Independent Director On business trip Wang Yiqiu
The Company will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the
report period.
Chairman of the Board – Zhang Xiaofang, Chief Financial Officer – Mr. Cao Aimin, and Head of Accounting
Dept. – Mr. Wang Shaoyu hereby declare: the authenticity and integrality of the report are guaranteed.
The prospective statements contained in the annual report are not constituting any substaintial commitment to the
investors. Investors please be aware of the risks attached to investment decisions.
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Bengang Steel Plates Co., Ltd. Interim Report 2013
Table of Contents
Chapter I. Important Prompts, Table of Contents, and Definitions ..........................................................................................................2
Chapter II. Company Profile....................................................................................................................................................................5
Chapter III. Financial Highlights .............................................................................................................................................................7
Chapter IV. Board of Directors Report ...................................................................................................................................................9
Chapter V. Significant Events .............................................................................................................................................................17
Chapter VI. Change of Share Equity and Shareholders .........................................................................................................................28
Chapter VII. Particulars about the Directors, Supervisors and Senior Executives .................................................................................32
Chapter VIII. Financial Report ..............................................................................................................................................................33
Chapter IX. Documents for Reference.................................................................................................................................................162
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Bengang Steel Plates Co., Ltd. Interim Report 2013
Glossary
Defined
Terms Description
as
Bengang Bancai, Bengang Steel, the Company, the Listed Defined
Bengang Steel Plates Co., Ltd.
Company as
Defined
Bengang Group, the Group Benxi Steel (Group) Co., Ltd.
as
Defined Liaoning State-owned Asset Supervisory and Management
Liaoning Provincial State-asset Administration
as Committee
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Bengang Steel Plates Co., Ltd. Interim Report 2013
Chapter II. Company Profile
I. Company profile
Stock ID Bengang Bancai, Bengangban B Stock Code 000761、200761
Stock Exchange Listed in Shenzhen Stock Exchange
Company Name in Chinese Bengang Steel Plates Co., Ltd.
Abbreviation in Chinese (if any) Bengang Bancai
Company Name in English BENGANG STEEL PLATES CO.,LTD.
Shortform of Company Name in English BSP
Legal representative: Zhang Xiaofang
II. Contacts
Secretary of the Board Representative of Stock Affairs
Name Zhang Jichen Lu Xiaoyong
No.16, Renmin Road, Pingshan District, Benxi City, Liaoning No.16, Renmin Road, Pingshan District, Benxi City,
Address
Province Liaoning Province
Tel. 7828360 7828010
Fax. 7824158 7827004
Email. bgbczjc761@126.com bgbclxy@126.com
III. Other info.
1. Contacts
Any change to the registered address, office address, postal code, official website, and email address of the Company
[V] Applicable Not applicable
Registered address 18th Gangtie Road, Pingshan, Benxi, Liaoning
Post code of the registered address 117021
Office address No.16, Renmin Road, Pingshan District, Benxi City, Liaoning Province
Post code of the office address 117000
Web Address None
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Bengang Steel Plates Co., Ltd. Interim Report 2013
Email address bgbc761@126.com
Inquiry website of the Companys announcements http://www.cninfo.com.cn
2. Information inquiry
Whether the place for information enquiry has been changed in the report term
[] Applicable; [V] Not applicable
None of the official presses, website, and place of enquiry has been changed in the report period.
3. Change of business registration
Whether the business registration has been changed in the report period
[] Applicable; [V] Not applicable
None of the registration date and place, the license number, tax number, organization number has been changed in the report period.
For details please find Annual Report 2012.
4. Misc. Information
Was there any other changes to the misc. information
[] Applicable; [V] Not applicable
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Bengang Steel Plates Co., Ltd. Interim Report 2013
Chapter III. Financial Highlights
I. Main accounting data and indices
Are there any retrospective adjustment or restatement of financial information of previous year due to change of accounting policies
or correcting of accounting errors
[] Yes [V] No
Same period last
This report term Increase/decrease (%)
year
Turnover (RMB) 22,513,900,380.76 22,841,569,834.06 -1.43%
Net profit attributable to shareholders of the listed company
167,484,002.73 145,181,307.69 15.36%
(yuan)
Net profit attributable to the shareholders of the listed company
154,994,536.90 137,445,021.82 12.77%
and after deducting of non-recurring gain/loss(RMB)
Net Cash flow generated by business operation (RMB) 508,005,622.06 189,516,824.61 168.05%
Basic earnings per share (Yuan/share) 0.05 0.05 0%
Diluted earnings per share (Yuan/share) 0.05 0.05 0%
Weighted average net
1.09% 0.94% 0.15%
income/asset ratio (%)
Ended this report Changed (%) over end of
End of prev. year
term prev. year
Gross Assets (RMB) 37,515,396,195.58 38,326,373,659.17 -2.12%
Net asset attributable to owners of the PLC 15,393,459,199.65 15,280,805,514.53 0.74%
II. Differences in accounting information under IAS and domestic accounting
standard
1. Differences in net profit and net asset under domestic and international accounting
standards
In RMB Yuan
Net profit attributable to the shareholders of the Net asset attributable to the shareholders of the listed
listed company company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting 167,484,002.73 145,181,307.69 15,393,459,199.65 15,280,805,514.53
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Bengang Steel Plates Co., Ltd. Interim Report 2013
Standard
Items and amounts adjusted on IAS
2. Differences in net profit and net asset under domestic and overseas accounting standards
In RMB Yuan
Net profit attributable to the shareholders of the Net asset attributable to the shareholders of the
listed company listed company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
167,484,002.73 145,181,307.69 15,393,459,199.65 15,280,805,514.53
Standard
Accounts and amounts adjusted according to overseas accounting standard
None
III. Non-recurring gain/loss items and amounts
In RMB Yuan
Items Amount Remarks
Gain/loss from disposal of non-current assets (includes the
-3,168,601.56
recovered part of asset impairment provision already provided)
Gains and losses included in the current period of government
subsidies, excluding those government grants which are closely
3,296,041.75
related to normal business and in line with national policy , or in
accordance with fixed standards or quantities
Gain/loss from debt reorganization 10,876,068.52
Other non-business income and expenditures other than the above 5,649,112.40
Less: Influenced amount of income tax 4,163,155.28
Total 12,489,465.83 --
If the company defines those items to recurring gain/loss itmes, which were defined by “Regulations of Information Disclosure of
PLCs, Explaination No.1 - Non-recurring gain/loss” as non-recurring gain/loss, please provide reason here.
[] Applicable; [V] Not applicable
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Bengang Steel Plates Co., Ltd. Interim Report 2013
Chapter IV. Board of Directors’ Report
I. Business overview
A. Business overview
In the report period the countries iron & steel industry has been facing a severe economic situation and greater difficulties in
operation. The Company has been focusing on the business targets setout at the beginning of year, keep improving its product
composition, international market exploring, and cost control. Good effects were shown in the aspects of product competition, market
share, and lower costs.
In the first half of year, the Company realized the output of iron 5.065 million tons, an increase of 4.5% YoY; of
steel 5.0899 million tons, an increase of 4.64% YoY; hot rolling plate 4.8748 million tons, an increase of 8% YoY;
cool rolling plate 973.2 thousand tons, an increase of 1.87% YoY; turnover of RMB22,513,900,400, and decrease
of 1.43% YoY; net profit of RMB167,484,000, an increase of 15.36% YoY.
B. Influence of the macro economy to the Companys business operation
Under the impact of economy reconstruction, depressed demand and redundant production capacity, the
countrys iron and steel industry is facing great challenge which was reflected in the following aspects:
Firstly the total output marked historical peaks one after another, the situation of oversupply will last.
Secondly, the prices in both domestic and international market were in depressive situation and forced
the sales prices down to the production costs. The profit margin was further narrowed.
Thirdly, trade conflicts happen frequently toward Chinese exporters, and put them under significant
pressure.
II. Analysis of main business
Overview
In the report period, the Companys main businesses were steel plates, steel billets, and side products. No change has been made on
the profit composition and sources.
Change in main financial data
In RMB Yuan
Same period last Changed
This report term Cause of change
year by % YoY
Turnover 22,513,900,380.76 22,841,569,834.06 -1.43%
Operation cost 21,153,962,726.36 21,194,363,935.21 -0.19%
Sales expense 313,641,927.61 274,555,046.97 14.24%
Social security fees of workshop workers were
Administrative expense 585,533,471.48 853,928,341.18 -31.43%
transferred to production costs
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Bengang Steel Plates Co., Ltd. Interim Report 2013
Decrease of loan balances, change of exchange
Financial expenses 189,350,346.53 272,068,952.92 -30.4%
rate, and increase of exchange gain/loss
Decrease of profit from subsidiaries and
Income tax expenses 30,264,063.99 43,737,850.91 -30.81%
deferred taxes
Input to R&D 1,258,436,000.00 1,433,915,000.00 -12.24%
Cash flow generated by
508,005,622.06 189,516,824.61 168.05% Increase of cash from busniess operation
business operation, net
Net cash flow generated by Decrease of cash paid for purchasing or
-644,802,004.70 -1,010,878,237.69 -36.21%
investment construction of fixed assets
Net cash flow generated by
-1,133,909,155.83 213,147,276.12 -631.98% Increase of loan repaid
financing
Net increasing of cash and
-1,272,251,146.60 -616,000,593.24 106.53% Increase of loan repaid
cash equivalents
Material changes in profit composition or sources
[] Applicable; [V] Not applicable
No change in profit composition or sources in the report period.
Business plans scheduled in Share Offer Prospectus or Capital Reconstruction Report which are extended to the report period
[] Applicable; [V] Not applicable
No business plans scheduled in Share Offer Prospectus or Capital Reconstruction Report which are extended to the report period
Implementation and progress of business plan provided by the previous periodic report:
To achieve the business plan proposed at the beginning of year, the Company had done great effort in the following aspects:
Product and management upgrading were accelerated, fully developed the advantages of state-of-art equipment, further improved
R&D system, promoted process innovation, closer investigation of the market demand, reinforce the cooperation of production and
sales force. Meanwhile, marketing and service were greatly reinforced, and the main business competition power were further
developed.
To upgrade the product struction and increase the contribution of high value-adding products to enlarge profit margin.
To speedup international operation approach to enlarge export scale. The overseas sales force and network were further constructed
to develop more direct customers.
Keep focusing on technical innovation, which is the overall stratigic priority. Great effort was spent on construction of a magnificent
technical layout in view of further increase the contribution of technologies.
Keep cost control as the core of production, mainly in control of energy consuming such as coal. Adjustment were made on
production lines, alloy component control, and technical optimizing. Great effort was done to reinforce the management of logistics
costs as well.
III. Main business composition
In RMB Yuan
Turnover Operation cost Gross profit Increase/decrease Increase/decrease Increase/decrease
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Bengang Steel Plates Co., Ltd. Interim Report 2013
ratio % of turnover over of operation cost of gross profit
the same period over the same ratio over the
of last year (%) period of last year same period of
(%) last year (%)
On Industries
20,878,770,805.7 19,708,887,070.5
Industries 5.6% -0.75% 1.12% -1.75%
7 7
On Products
20,512,586,877.0 19,395,010,033.2
Steel plate 5.45% -0.89% 0.99% -1.76%
7 9
Steel billet 112,972.56 101,067.24 10.54%
Others 366,070,956.14 313,775,970.04 14.29% 7.74% 9.83% -1.63%
On territories
Northeast 6,825,730,736.83 6,443,269,937.57 5.6% 0.87% 2.77% -1.75%
North 2,445,205,513.01 2,308,195,236.61 5.6% -5.85% -4.07% -1.75%
East 6,166,648,971.76 5,821,117,982.42 5.6% -1.68% 0.17% -1.75%
Northwest 36,962,769.98 34,891,664.18 5.6% -59.38% -58.61% -1.75%
Mid-south 2,266,128,494.18 2,139,152,299.47 5.6% 4.5% 6.47% -1.75%
Export 3,138,094,320.01 2,962,259,950.32 5.6% -0.11% 1.78% -1.75%
IV. Analyze of competitive edge
The company has insisted on “construct quality plates base” strategy for years and has established and taken its
leading technology advantage, performed environmental management, innovated development ways, accumulated
ability of product differentiation and kept relative perfect operation performance among the professions. .
1. Products: The company has adhered to market demand as the guidance for years and kept strengthening its
products structure to form the stratigic product groups represented by its car plate, oil pipe steel, etc. Meanwhile
the company has set up car plate, home appliance plate, pipe line steel, container steel and specialty steel of
variaties and specifications and took an important position in the domestic market.
2. Quality: The company has carried out and implemented precision management from the initial plan of product
quality, through the links of production to the final products. Now the quality product producing ability has
become an important conponent of the company core competiveness.
3. Service: The company has had 9 domestic local sales companies, several franchises and steel material
machining and distribution centers. The company also has set up overseas market network. The company has
basically set up customer-centric sales and service system and dilivered customers the technical services and
supply-chain extened services.
4. Research and development: The company for years has kept invested research and development to establish
corresponding system, which mainly of technique center and project department, associated tightly by system of
transformation whose features are directed by market, improved steadly and qualified operation. With the support
of these systems, the company has improve in operation and management, production running and environmental
management. In recent 2 years, the company has applied 43 patents of which 56% are invention patents.
5. Equipment: The company master operation equiped level has taken a place in the world advanced professions
after a term of years of weeding out of ralative outdated capacity and transformation of high energy assuming
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Bengang Steel Plates Co., Ltd. Interim Report 2013
equipments.
V. Investment
1. External equity investment
(1) External investment
External Investment
Investment of same period of last year
Investment of the period (RMB) Scale of change %
(RMB)
Particulars of the invested company
Name of companies Main Business Equity share in the invested company (%)
(2) Shareholding in financial enterprises
Share Shares
Original Share Close Gain/loss
Openning proportion held at the
Name of Type of investment proportion balance of in report Accountin Source of
amount of (%) at end of
companies company cost at end of book value period g subject shares
shares beginning term
(RMB) period % (RMB) (RMB)
of period (shares)
Total 0.00 0 -- 0 -- 0.00 0.00 -- --
(3) Stock investment
Share Shares Close
Share Gain/loss
Original Openning proportion held at the balance Source
Stock Stock Stock proportion in report Accounting
investment amount of (%) at end of of book of
category Code ID at end of period subject
cost (RMB) shares beginning of term value shares
period % (RMB)
period (shares) (RMB)
Total 0.00 0 -- 0 -- 0.00 0.00 -- --
Statement on holding of other PLCs shares.
[] Applicable; [V] Not applicable
2. Trusted financing, derivate instruments, and trusted loans
(1) Trusted financing
In RMB10 thousand
Title of Related Type of Amount Started Expired Mean Principal Impairment Predicted Actual
Relationship
entrustee transaction product entrusted on on of retreived provision income gain/loss
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Bengang Steel Plates Co., Ltd. Interim Report 2013
or not reward this period provided (if of the
any) period
Total 0 -- -- -- 0 0 0 0
Resource of capital trusted None
Accumulated principal and gains overdue 0
(2) Derivate instrument investment
In RMB10 thousand
Proportion
of
Operator of Impairment Actual
Related Openning Closing investment
the Type of Initial Started Expired provision gain/loss
Relationship transaction balance of balance of in the net
derivate instruments investment on on provided of the
or not investment investment asset at
instruments (if any) period
end of
period
Total 0 -- -- 0 0 0% 0
Resource of capital for derivate instruments None
(3) Trusted loans
In RMB10 thousand
Related
Amount of Interest Guarantor or Capital application
Object of loan party or
loan rate pledge of the object
not
Total -- 0 -- -- --
3. Using of proceeds from share placing.
(1) Overall situation of capital from share issuing
In RMB10 thousand
Statement on overall application of finance raised
(2) Projects financed by share issuing
In RMB10 thousand
If Total of Total Amount Accumul Investme Date
Project promised to be Gains in Major
investme proceeds investme invested ated nt when the Gains as
invested by the the report change in
nt project to be nt after this investme progress project expected
proceeds term feasibility
changed invested adjustme report nt at end at end of become
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Bengang Steel Plates Co., Ltd. Interim Report 2013
(includin as nt term of report report useable
g proposed term (2) term(%)( as
partially 3)＝ proposed
change) (2)/(1)
Project set by the prospectus
Investment project of premium surplus
Total -- 0 0 0 0 -- -- 0 -- --
Amount, usage and
progress of premium Not applicable
surplus
Change of location of
Not applicable
project to invest
Adjustment on
implementation of Not applicable
project invested
Pre-investment and
replacement by Not applicable
proceeds
Idle proceed used as
Not applicable
working capital
Surplus of investment
Not applicable
and causation
(3) Change of projects financed by proceeds
In RMB10 thousand
Progress of
Accumulate Is there any
investment Date when
Total Actual d major
Project at end of the project
investment investment investment Gains in the Gains as change in
New project promised report become
after change in report at end of report term expected feasibility
originally period useable as
(1) period report about the
(%)(3)=(2)/ proposed
period (2) projects
(1)
Total -- 0 0 0 -- -- 0 -- --
Reasons, decision-making process,
and information disclosure of change None
(on each project)
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Bengang Steel Plates Co., Ltd. Interim Report 2013
(4) Projects financed by share issuing
Overview of projects Date of disclosure Index of information disclosure
4. Analyze of main subsidiaries and affiliates
Profiles of main subsidiaries and affiliates
In RMB Yuan
Major
Name of Type of Registered Operation
Industry products Gross Assets Net asset Turnover Net profit
companies business capital profit
or service
Bengang
Steel Plate Production
Rolling
Liaoyang Subsidiaries and sales 10,000,000.00 851,993,359.31 824,144,025.21 965,480,681.97 109,879,077.77 82,258,315.74
of steel
Orel Ball of ore ball
Co., Ltd.
Shanghai
Bengang Rolling Sales of
Subsidiaries 19,200,000.00 503,849,081.40 71,467,482.81 1,837,742,483.55 14,211,116.49 10,880,368.68
Metallurgy of steel steel
Tech. Ltd.
5. Major projects using non-raised capital
In RMB10 thousand
Amount Investment
Planned Accumulation of actual Turnover of the
Projects invested this progress of the
investment input at end of period project
report term project
under
Information system project 41,413 2,270 29,768 71.88%
construction
Environmental reconstruction of
under
converter and the 180t 159,105 3,075 122,440 76.96%
construction
dephosphorization converter
under
Dandong stainless steel project 230,541 14,887 188,511 81.77%
construction
under
Cool-rolling silicon steel project 73,799 3,448 59,900 81.17%
construction
Production line of electro-galvanized under
75,592 5,714 68,450 90.55%
steel plates for automobile construction
Cool rolling high strength steel under
579,100 28,913 33,295 5.75%
rebuilding construction
Reconstruction project of coke dry under
45,977 5,302 8,173 17.78%
cooling of No.2 Coke Workshop construction
under
The new energy control center project 26,300 1,997 15,888 60.41%
construction
Total 1,231,827 65,606 526,425 -- --
VI. Prediction of business performance for Jan-Sept 2013
Alert of loss or significant change in net profit from the beginning of year to the end of next report period or comparing with the
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Bengang Steel Plates Co., Ltd. Interim Report 2013
same period of last year, and statement of causations.
[] Applicable; [V] Not applicable
VII. Implementation of profit distribution plan in the report period
Execution or adjustment of profit distribution, especially cash dividend, and capitalizing of reserves in the report period.
[V] Applicable Not applicable
It was approved at the Shareholders Meeting 2012 held on May 17 2013, that basing on the total
capital shares of 3,136,000,000 shares at end of 2012, RMB0.2 (tax included) of cash dividend were to be
distributed to each 10 shares and all shareholders. Totally RMB62,720,000.00 were to be distributed on July 4.
VIII. Reception of investigations, communications, or interviews
Main content involved and
Time/date Place Way Type of visitors Visitors
material provided
Office of the
Jan 31 2013 Field research Institution Jiashi Foundation Business operation
secretary of Board
Office of the
Feb 27 2013 Field research Institution Galaxy Securities Business operation
secretary of Board
Pengyuan Credit
Office of the
Mar 04 2013 Field research Institution Assessment Co., Business operation
secretary of Board
Ltd.
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Bengang Steel Plates Co., Ltd. Interim Report 2013
Chapter V. Significant Events
I. Administrative Position
There is no difference between the actual situation of the Company and the requirments of the CSRC.
II. Material lawsuits
[] Applicable; [V] Not applicable
In the report period, the Company had no material lawsuits or arbitrations.
III. Media queries
[] Applicable; [V] Not applicable
No media queries raised in the report period.
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Bengang Steel Plates Co., Ltd. Interim Report 2013
IV. Material related transactions
1. Related transactions related to daily operation
Subjects of the Principle of pricing Price Percentage in Market price of Index of
Amount of trade Way of Date of
Related parties Relationship Type of trade related the related of similar similar trade information
RMB0000 payment disclosure
transactions transactions trade trades % available disclosure
Purchasing of
Benxi Steel (Group)
products and Land using rights 2,871.3 0.14%
Ltd.
services
Purchasing of
Benxi Steel (Group)
products and Maintaining 12,084.8 0.57%
Ltd.
services
Bengang Puxiang Purchasing of
Cool Rolling Steel products and Raw materials 210,503.44 9.95%
Sheet Co., Ltd. services
Purchasing of
Bengang Group Repairing
products and 52.64 0%
Mineral Co., Ltd. services
services
Purchasing of
Bengang Group
products and Raw materials 271,584.2 12.84%
Mineral Co., Ltd.
services
Purchasing of
Bengang Group
products and Transportation 7.1 0%
Mineral Co., Ltd.
services
Purchasing of
Bengang Group
products and Raw materials 0%
Hong Kong Ltd.
services
Bengang Group Purchasing of
Metallurgy Residue products and Raw materials 8,815.6 0.42%
Ltd. services
Benxi Steel (Group) Purchasing of
Steel Process & products and Process fee 253.18 0.01%
Logistics Ltd. services
Bengang Group Purchasing of
Property products and Raw materials 2,446.57 0.12%
Development Ltd. services
Bengang Group Purchasing of Property
0%
Property Co., Ltd. products and management fee
18
Bengang Steel Plates Co., Ltd. Interim Report 2013
services
Bengang Group Purchasing of
Property
Property products and 53.77 0%
management fee
Management Center services
Purchasing of
Bengang Group
products and Parts 12,587.48 0.6%
Machinery Ltd.
services
Purchasing of
Bengang Group Repairing
products and 268.86 0.01%
Machinery Ltd. services
services
Purchasing of
Bengang Group
products and Raw materials 0%
Machinery Ltd.
services
Purchasing of
Benxi Steel (Group)
products and Spare parts 354.03 0.02%
Construction Ltd.
services
Purchasing of
Benxi Steel (Group) Repairing
products and 24,588.42 1.16%
Construction Ltd. services
services
Purchasing of
Benxi Steel (Group)
products and Raw materials 73.25 0%
Construction Ltd.
services
Purchasing of
Benxi Steel (Group)
products and Transportation 339.55 0.02%
Construction Ltd.
services
Benxi Steel (Group) Purchasing of
Industrial products and Spare parts 2,379.32 0.11%
Development Ltd. services
Benxi Steel (Group) Purchasing of
Industrial products and Raw materials 14,000.37 0.66%
Development Ltd. services
Benxi Steel (Group) Purchasing of
Repairing
Industrial products and 748.95 0.04%
services
Development Ltd. services
Benxi Steel (Group) Purchasing of
Industrial products and Transportation 436.65 0.02%
Development Ltd. services
Benxi Steel (Group) Purchasing of
Material and
Repairing & products and 375.32 0.02%
parts
Building Ltd. services
Benxi Steel (Group) Purchasing of
Repairing & products and Maintaining 8,614.31 0.41%
Building Ltd. services
Bengang Electronics Purchasing of
Raw materials 7,071.45 0.33%
Co., Ltd. products and
19
Bengang Steel Plates Co., Ltd. Interim Report 2013
services
Purchasing of
Bengang Electronics Repairing
products and 990.76 0.05%
Co., Ltd. services
services
Benxi Steel (Group) Purchasing of
Drilling Tools Co., products and Spare parts 20.73 0%
Ltd. services
Bengang Group New
Purchasing of
Industry Labour security
products and 224.17 0.01%
Development Co., fee
services
Ltd.
Purchasing of
Liaoning Metallurgy
products and Spare parts 1,033.35 0.05%
Technician College
services
Benxi Steel (Group) Purchasing of
Information and products and Spare parts 435.12 0.02%
Automatic Tech. Ltd. services
Benxi Steel (Group) Purchasing of
Repairing
Information and products and 415.89 0.02%
services
Automatic Tech. Ltd. services
Bengang Group
Purchasing of
Thermal Power
products and Heating fee 523.02 0.02%
Development Co.,
services
Ltd.
Bengang Designing Purchasing of
Repairing
& Researching products and 507.7 0.02%
services
Institute Ltd. services
Purchasing of
Benxi Steel (Group)
products and Freight 2,200.39 0.1%
Trucking Ltd.
services
Benxi Beiying Steel Purchasing of
& Iron (Group) Co., products and Raw materials 25,663.49 1.21%
Ltd. services
Liaoning Hengtong Purchasing of
Raw materials
Metallurgy products and 2,959.43 0.14%
and parts
Equipment Co., Ltd. services
Liaoning Hengtai Purchasing of
Raw materials
Heavy Machine Co., products and 2,303.16 0.11%
and parts
Ltd. services
Liaoning Hengtai Purchasing of
Repairing and
Heavy Machine Co., products and 915.8 0.04%
service
Ltd. services
Sales of
Benxi Steel (Group) Material and
products and 574.95 0.03%
Ltd. parts
services
20
Bengang Steel Plates Co., Ltd. Interim Report 2013
Sales of
Benxi Steel (Group)
products and Power supply 5,257.78 0.23%
Ltd.
services
Sales of
Dalian Boluole Steel
products and Products 542.48 0.02%
Tube Ltd.
services
Liaoning Bengang Sales of
Steel & Iron Trading products and Products 28,348.2 1.26%
Co., Ltd. services
Benxi Steel (Group) Sales of
Steel Process & products and Products 23,618.98 1.05%
Logistics Ltd. services
Benxi Steel (Group) Sales of
Steel Process & products and Power supply 52.14 0%
Logistics Ltd. services
Bengang Group Sales of
Dahe Industry Co., products and Power supply 66.41 0%
Ltd. services
Benxi Steel (Group) Sales of
Material and
Industrial products and 6,205.42 0.28%
parts
Development Ltd. services
Benxi Steel (Group) Sales of
Industrial products and Power supply 174.76 0.01%
Development Ltd. services
Sales of
Benxi Steel (Group) Material and
products and 2,388.03 0.11%
Construction Ltd. parts
services
Sales of
Benxi Steel (Group)
products and Power supply 492.98 0.02%
Construction Ltd.
services
Sales of
Bengang Group
products and Power supply 1,210.25 0.05%
Machinery Ltd.
services
Sales of
Bengang Group Material and
products and 14,862.34 0.66%
Mineral Co., Ltd. parts
services
Sales of
Bengang Group
products and Power supply 38,661.22 1.72%
Mineral Co., Ltd.
services
Sales of
Bengang Group
products and Freight income 85.67 0%
Mineral Co., Ltd.
services
Bengang Group New Sales of
Industry products and Power supply 17.4 0%
Development Co., services
21
Bengang Steel Plates Co., Ltd. Interim Report 2013
Ltd.
Benxi Steel (Group) Sales of
Material and
Repairing & products and 124.49 0.01%
parts
Building Ltd. services
Benxi Steel (Group) Sales of
Repairing & products and Power supply 83.68 0%
Building Ltd. services
Bengang Group Sales of
Material and
Metallurgy Residue products and 5,325.33 0.24%
parts
Ltd. services
Bengang Group Sales of
Metallurgy Residue products and Power supply 242.15 0.01%
Ltd. services
Sales of
Bengang Electronics
products and Power supply 40.56 0%
Co., Ltd.
services
Bengang Puxiang Sales of
Cool Rolling Steel products and Products 342,077 15.19%
Sheet Co., Ltd. services
Bengang Puxiang Sales of
Material and
Cool Rolling Steel products and 22,906.45 1.02%
parts
Sheet Co., Ltd. services
Bengang Puxiang Sales of
Cool Rolling Steel products and Power supply 21,112.26 0.94%
Sheet Co., Ltd. services
Bengang Group
Sales of
Thermal Power
products and Power supply 3,411.58 0.15%
Development Co.,
services
Ltd.
Bengang Group
Sales of
Thermal Power Material and
products and 126.9 0.01%
Development Co., parts
services
Ltd.
Sales of
Bengang Group
products and Power supply 258.88 0.01%
Property Co., Ltd.
services
Tianjin Bengang
Sales of
Steel Plate
products and Products 40.17 0%
Processing and
services
Delivery Co., Ltd.
Benxi Beiying Steel Sales of
Material and
& Iron (Group) Co., products and 34,875.15 1.55%
parts
Ltd. services
Liaoning Hengtong Sales of
Power supply 556.13 0.02%
Metallurgy products and
22
Bengang Steel Plates Co., Ltd. Interim Report 2013
Equipment Co., Ltd. services
Liaoning Hengtong Sales of
Material and
Metallurgy products and 2,179.27 0.1%
parts
Equipment Co., Ltd. services
Total -- -- 1,174,622.58 -- -- -- -- --
It was forcased at the beginning of 2013 that the related transactions will be RMB28,543,900,000 for the whole year, and
Please provide actual situation of routine related transactions if they
RMB14,271,950,000 for half year. The actual amount of the 1st half of 2013 was RMB11,746,225,800, a decrease of
are forcasted in categories (if any)
RMB2,525,724,200, that was caused by change of purchasing and sales prices.
23
Bengang Steel Plates Co., Ltd. Interim Report 2013
2. Related transactions related to asset purchasing or disposal
Principle Evaluati
Book
Subjects of on value Fair Gain / Index of
value of Transacti
of the pricing of asset market loss of Date of informati
Related Relations Type of asset on price Way of
related the transferr value trade disclosur on
parties hip trade transfer (RMB0 payment
transacti related ed (RMB0 (RMB0 e disclosur
(RMB0 000)
ons transacti (RMB0, 000) 000) e
000)
ons 000)
3. Material related transactions related to collaborated external investment
Pricing Registered
Main Total asset of Net asset of Net profit of
policies for Name of the capital of the
Joint investor Relationship business of the investee the investee the investee
joint investee invested
the investee (RMB0000) (RMB0000) (RMB0000)
investment enterprise
4. Debtors and credits with related parties
Non-operational transaction of credits and debts with related parties
[] Yes [V] No
Is there any
Openin Occurred Closing
Type of credit non-operation
Related parties Relationship Cause balance current period balance
or debt al capital
(RMB0000) (RMB0000) (RMB0000)
appropriation
5. Other material related transactions
None
Online inquiry of provisional announcements about major related transactions
Title of website for the provisional
Title of provisional announcement Date of provisional accouncement
announcement
V. Significant contracts and execution
1. Entrustment, contracting, and leasing issues
(1) Trusteeship
Statement on entrustment
None
Projects brought the Company with gain/loss for over 10% of the total profit of the report period.
24
Bengang Steel Plates Co., Ltd. Interim Report 2013
[] Applicable; [V] Not applicable
(2) Contracting
Statement on contracting
None
Projects brought the Company with gain/loss for over 10% of the total profit of the report period.
[] Applicable; [V] Not applicable
(3) Leasing
Statement on the leasing
Related leasing (RMB Yuan)
Name of the owner Name of the tenant Category of asset Starting Ending Pricing Rental income recognized in
for rent date date basis the period
Benxi Steel (Group) Bengang Steel Plates 2300 hot rolling 2012-01-01 2014-12-31 (1) -180,000,000.00
Co., Ltd. Co., Ltd. line
Benxi Steel (Group) Bengang Steel Plates Land using right 2009-04-15 (2) -57,426,000.00
Co., Ltd. Co., Ltd.
Remarks on the rental with related party:
(1) Rental of the production line was decided by the parties through negotiation basing upon the original
value, depreciation, national tax, and working status of the equipment. The highest limit of annual rental is
RMB350 million.
(2) Rental for the 7,669,068.17 square meters of land was at RMB0.624 per month per square meter, namely
annual rental of RMB57.426 million.
Projects brought the Company with gain/loss for over 10% of the total profit of the report period.
[] Applicable; [V] Not applicable
2. Guarantees
In RMB10 thousand
External Guarantee (Exclude controlled subsidiaries)
Amount of Actual date of Related
Guarantee Amount of Actual amount Type of Completed
guarantee and date occurring (signing date Term party or
provided to the guarantee of guarantee guarantee or not
of disclosure of agreements not
Guarantee provided to controlled subsidiaries
Amount of Actual date of Related
Guarantee Amount of Actual amount Type of Completed
guarantee and date occurring (signing date Term party or
provided to the guarantee of guarantee guarantee or not
of disclosure of agreements not
Total of guarantee provided by the Company (i.e. total of the above two items)
25
Bengang Steel Plates Co., Ltd. Interim Report 2013
In which:
Particulars about combined guarantees
None
3. Other material contracts
Book Evaluated
Name of
The value of value of Base date Position
The other the Price Related
Company Date of asset asset of Pricing Relations at the end
party of evaluatin RMB000 transactio
s party of contract involved involved evaluatio policy hip of report
contract g institute 0 n or not
contract (RMB00 (RMB00 n if any period
if any
00) if any 00) if any
4. Other material trades
None
VI. Engaging or dismissing of CPAs
Whether the Intrim Report was audited or not
[] Yes [V] No
VII. Punishment and improvement
Type of Index of
Conclusion (if
Name/title Type Causation investigation or Date of disclosure information
any)
punishment disclosure
Statement on improving approach
[] Applicable; [V] Not applicable
VIII. Remarks on other material issues
1. On June 29, 2012, the Company filed to CSRC for private issuing of shares. The expiration date authorized by the shareholders
meeting has been due. Taking account of the change of market, Anxin Securities Co., Ltd. (the sponsor) and the Company have
decided not to extend the expiration date and had it terminated. (For details please find the announcement issued by China Securities
Journal dated June 15 2013 and www.cninfo.com.cn Announcement No. 2013-014) Anxin Securities Co., Ltd. (the sponsor) and the
Company have filed to CSRC to drawback the application of private issuing.
2. It was at the 18th meeting of the 5th term of Board held on April 22, 2013, the proposal of financial operations with idle capital
(for details please find Announcement 2013-010 available with China Securities Journal, Securities Times and www.cninfo.com.cn
dated April 24 2013.) This plan was not put into operation in the report period.
26
Bengang Steel Plates Co., Ltd. Interim Report 2013
27
Bengang Steel Plates Co., Ltd. Interim Report 2013
Chapter VI. Change of Share Equity and Shareholders
I. Statement of change in shares
Before the change Changed Currently (+,-) After the change
Issuing of Transferre
Proportion Bonus Proportio
Amount new d from Others Sub-total Amount
% shares n%
shares reserves
I. Shares with trade
0 0% 0 0%
restriction conditions
II. Shares without trading 3,136,000, 3,136,000
100% 100%
limited conditions 000 ,000
2,736,000, 2,736,000
1. Common shares in RMB 87.24% 87.24%
000 ,000
2. Foreign shares in 400,000,0 400,000,0
12.76% 12.76%
domestic market 00 00
3,136,000, 3,136,000
III. Total of capital shares 100% 100%
000 ,000
Causation of change in share equity
[] Applicable; [V] Not applicable
Approval of change in share capital
[] Applicable; [V] Not applicable
Situation of registration process of transferred shares
[] Applicable; [V] Not applicable
Influences of the change of share equity on financial indices such as basic earning per share, dilluted earning per share, and net asset
per share attributed to common shareholders:
[] Applicable; [V] Not applicable
Other information the Company thinks necessary or required by the authority to be disclosed
[] Applicable; [V] Not applicable
Change of total shares and shareholding structures, assets and liabilities
[] Applicable; [V] Not applicable
28
Bengang Steel Plates Co., Ltd. Interim Report 2013
II. Number of shareholders and shareholding positions
in shares
Total shareholders at the end of the report period 56,363
Shareholders with over 5% or above of the Companys shares
Share Amount of Amount of Frozen or pledged
Properties of Shares held at the Changed in the
Name of the shareholder proportion unconditional shares unconditional
shareholder end of report term report period Status of shares Amount
(%) held shares
State-owned
Benxi Steel (Group) Ltd. 82.07% 2,573,632,420
legal person
GOVERNMENT OF SINGAPORE Overseas legal
0.88% 27,589,238
INV. CORP.- A/C "C" person
GSIC A/C MONETARY AUTHORITY Overseas legal
0.34% 10,754,117
OF SINGAPORE person
BBH A/C VANGUARD EMERGING Overseas legal
0.26% 8,157,311
MARKETS STOCK INDEX FUND person
Overseas legal
APS CHINA ALPHA FUND 0.13% 4,057,501
person
HSBC BROKING SECURITIES Overseas legal
0.12% 3,615,800
(ASIA) LIMITED-CLIENTS A/C person
National Social Insurance Foundation
Others 0.11% 3,450,040
Portfolio 104
LSV EMERGING MARKETS EQUITY Overseas legal
0.11% 3,385,700
FUND,L.P. person
Domestic natural
Bao Xinfa 0.1% 3,200,000
person
Taifook Securities Company Overseas legal
0.1% 3,159,109
Limited-Account Client person
Particulars about strategic investors or general corporations
becoming among the top 10 shareholders due to share None
placing (if any) (See Note 3)
Notes to relationship or“action in concert”among the top It is unknown to the Company whether there is any related connection or Action in Concert as described by Rules of Information
ten shareholders. Disclosing Regarding Changing of Shareholding Status of Listed Companies existing among the above shareholders.
Top 10 holders of unconditional shares
Category of shares
Name of the shareholder Amount of unconditional shares held at end of period
Category of shares Amount
RMB common
Benxi Steel (Group) Ltd. 2,573,632,420 2,573,632,420
shares
29
Bengang Steel Plates Co., Ltd. Interim Report 2013
Foreign shares
GOVERNMENT OF SINGAPORE INV. CORP.- A/C "C" 27,589,238 placed in domestic 27,589,238
exchange
Foreign shares
GSIC A/C MONETARY AUTHORITY OF SINGAPORE 10,754,117 placed in domestic 10,754,117
exchange
Foreign shares
BBH A/C VANGUARD EMERGING MARKETS STOCK
8,157,311 placed in domestic 8,157,311
INDEX FUND
exchange
Foreign shares
APS CHINA ALPHA FUND 4,057,501 placed in domestic 4,057,501
exchange
Foreign shares
HSBC BROKING SECURITIES (ASIA)
3,615,800 placed in domestic 3,615,800
LIMITED-CLIENTS A/C
exchange
RMB common
National Social Insurance Foundation Portfolio 104 3,450,040 3,450,040
shares
Foreign shares
LSV EMERGING MARKETS EQUITY FUND,L.P. 3,385,700 placed in domestic 3,385,700
exchange
Foreign shares
Bao Xinfa 3,200,000 placed in domestic 3,200,000
exchange
Foreign shares
Taifook Securities Company Limited-Account Client 3,159,109 placed in domestic 3,159,109
exchange
Benxi Steel & Iron (Group) Co., Ltd., the holding shareholder, has no relationship with any of the other shareholders among the top
10 shareholders, neither being regarded as action-in-concert parties by the Information Disclosure Regulations for Change of
Action-in-concert among top 10 non-restricted current Shareholding in PLC
share holders, top 10 non-restricted current share holders The Company is not aware of any relationship among the other shareholders, nor of any action-in-concert as recognized according to
and top 10 shareholders the Information Disclosure Regulations for Change of Shareholding in PLC.
The Company is not aware of any relationship among the top 10 shareholders, nor of any action-in-concert as recognized according
to the Information Disclosure Regulations for Change of Shareholding in PLC.
Particulars about shareholders took part in financing or
None
stock exchanging business (if any) (see Note 4)
Was there any agreed repurchasing trade by shareholders in the report period
[] Yes [V] No
30
Bengang Steel Plates Co., Ltd. Interim Report 2013
III. Change of holding shareholder or substaintial controller
Change of holding shareholder
[] Applicable; [V] Not applicable
Change of substaintial controller
[] Applicable; [V] Not applicable
31
Bengang Steel Plates Co., Ltd. Interim Report 2013
Chapter VII. Particulars about the Directors, Supervisors and Senior
Executives
I. Change of shareholding of directors, supervisors and senior executives
[] Applicable; [V] Not applicable
No changes happened to any of the directors, supervisors, or executives in the report period. For details please refer to the Annual
Report 2012.
II. Leaving or dismissing of directors, supervisors, and executives
Name Jobs taken Type Date Causation
Independent
Jin Yongli Engage/dismiss May 17 2013 Shift of terms
Director
Independent Expiration of
Tian Binfu May 17 2013 Shift of terms
Director term
32
Bengang Steel Plates Co., Ltd. Interim Report 2013
Chapter VIII. Financial Report
I. Auditors’ Report
If the Interim Report is audited
[] Yes [V] No
The Semi-annual Financial Report is not audited.
II. The Financial Statements
All figures in the Notes to the Financial Statements are in RMB Yuan
1. Consolidated Balance Sheet
Bengang Steel Plate Co., Ltd.
In RMB Yuan
Items Closing balance Openning balance
Current asset:
Monetary capital 2,415,937,909.49 3,620,975,109.53
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 3,531,940,793.15 2,942,033,786.43
Account receivable 220,584,238.47 285,077,905.13
Prepayment 429,349,058.64 646,868,304.90
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable
Other account receivable 235,813,740.36 223,531,628.08
Repurchasing of financial assets
Inventories 10,116,984,903.79 9,793,719,875.93
Non-current asset due in 1 year
33
Bengang Steel Plates Co., Ltd. Interim Report 2013
Other current asset 182,211,823.73 182,211,823.73
Total of current asset 17,132,822,467.63 17,694,418,433.73
Non-current assets
Disburse of consigned loans
Sellable financial asset
Expired investment in possess
Long-term receivable
Long-term share equity investment 15,914,835.63 15,914,835.63
Investment real estates
Fixed assets 16,157,096,377.59 17,109,088,074.16
Construction in process 3,989,690,039.92 3,311,253,843.64
Engineering goods 23,818,825.52 5,598,691.84
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 107,967,815.81 109,172,234.67
R&D expense
Goodwill
Long-term amortizable expenses
Deferred income tax asset 88,085,833.48 80,927,545.50
Other non-current asset
Total of non-current assets 20,382,573,727.95 20,631,955,225.44
Total of assets 37,515,396,195.58 38,326,373,659.17
Current liabilities
Short-term loans 10,023,297,069.44 9,385,322,164.53
Loan from Central Bank
Deposit received and hold for others
Call loan received
Transactional financial liabilities
Notes payable 590,793,011.87 349,101,821.61
Account payable 5,160,122,940.46 5,376,244,858.97
Advances received 2,859,859,436.50 2,916,409,742.49
Selling of repurchased financial assets
Fees and commissions receivable
34
Bengang Steel Plates Co., Ltd. Interim Report 2013
Employees’ wage payable 71,122,278.98 69,133,733.89
Tax payable -239,217,495.91 28,463,783.22
Interest payable 2,306,947.03 9,030,341.06
Dividend payable 62,720,000.00
Other account payable 713,866,980.98 696,793,542.48
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year 1,268,690,000.00 1,689,992,983.62
Other current liability
Total of current liability 20,513,561,169.35 20,520,492,971.87
Non-current liabilities
Long-term borrowings 1,273,911,837.68 2,250,862,074.74
Bond payable
Long-term payable
Special payable
Anticipated liabilities
Deferred income tax liability
Other non-recurring liabilities 301,056,330.31 239,456,794.31
Total of non-current liabilities 1,574,968,167.99 2,490,318,869.05
Total of liability 22,088,529,337.34 23,010,811,840.92
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 3,136,000,000.00 3,136,000,000.00
Capital reserves 8,822,821,134.76 8,822,821,134.76
Less: Shares in stock
Special reserves 8,200,907.20 311,224.81
Surplus reserves 934,045,040.35 934,045,040.35
Common risk provision
Retained profit 2,492,392,117.34 2,387,628,114.61
Different of foreign currency translation
Total of owner’s equity belong to the parent company 15,393,459,199.65 15,280,805,514.53
Minor shareholders’ equity 33,407,658.59 34,756,303.72
Total of owners equity (or shareholders equity) 15,426,866,858.24 15,315,561,818.25
35
Bengang Steel Plates Co., Ltd. Interim Report 2013
Total of liability and shareholders equity (or owners equity) 37,515,396,195.58 38,326,373,659.17
Legal representative: Zhang Xiaofang CFO: Cao Aimin Accounting Manager: Wang Shaoyu
2. Balance Sheet of the Parent Company
Bengang Steel Plate Co., Ltd.
In RMB Yuan
Items Closing balance Openning balance
Current asset:
Monetary capital 2,356,848,294.30 3,480,999,428.60
Transactional financial assets
Notes receivable 3,340,227,039.68 2,859,369,336.34
Account receivable 415,983,386.87 768,963,743.00
Prepayment 331,606,037.33 419,012,587.31
Interest receivable
Dividend receivable
Other account receivable 491,594,194.38 628,030,340.75
Inventories 9,296,642,385.18 8,864,691,520.27
Non-current asset due in 1 year
Other current asset 182,211,823.73 182,211,823.73
Total of current asset 16,415,113,161.47 17,203,278,780.00
Non-current assets
Sellable financial asset
Expired investment in possess
Long-term receivable
Long-term share equity investment 1,885,147,561.06 1,185,147,561.06
Investment real estates
Fixed assets 15,672,395,589.85 16,609,887,181.29
Construction in process 2,094,074,604.65 1,567,292,769.94
Engineering goods 23,818,825.52 5,598,691.84
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets
R&D expense
36
Bengang Steel Plates Co., Ltd. Interim Report 2013
Goodwill
Long-term amortizable expenses
Deferred income tax asset 88,214,054.86 85,217,223.64
Other non-current asset
Total of non-current assets 19,763,650,635.94 19,453,143,427.77
Total of assets 36,178,763,797.41 36,656,422,207.77
Current liabilities
Short-term loans 9,950,905,800.00 9,333,587,000.00
Transactional financial liabilities
Notes payable 590,597,411.87 347,757,821.61
Account payable 5,640,172,519.54 5,524,697,173.86
Advances received 2,291,050,367.04 2,330,367,617.99
Employees’ wage payable 70,619,069.75 68,525,517.05
Tax payable -33,614,984.22 206,885,819.95
Interest payable 0.00 7,986,111.11
Dividend payable 62,720,000.00
Other account payable 564,167,442.52 457,426,075.41
Non-current liability due in 1 year 1,268,690,000.00 1,689,992,983.62
Other current liability
Total of current liability 20,405,307,626.50 19,967,226,120.60
Non-current liabilities
Long-term borrowings 673,911,837.68 1,650,862,074.74
Bond payable
Long-term payable
Special payable
Anticipated liabilities
Deferred income tax liability
Other non-recurring liabilities 215,400,820.40 153,790,424.00
Total of non-current liabilities 889,312,658.08 1,804,652,498.74
Total of liability 21,294,620,284.58 21,771,878,619.34
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 3,136,000,000.00 3,136,000,000.00
Capital reserves 8,822,821,134.76 8,822,821,134.76
Less: Shares in stock
37
Bengang Steel Plates Co., Ltd. Interim Report 2013
Special reserves 8,200,907.20 311,224.81
Surplus reserves 934,045,040.35 934,045,040.35
Common risk provision
Retained profit 1,983,076,430.52 1,991,366,188.51
Different of foreign currency translation
Total of owners equity (or shareholders equity) 14,884,143,512.83 14,884,543,588.43
Total of liability and shareholders equity (or owners equity) 36,178,763,797.41 36,656,422,207.77
Legal representative: Zhang Xiaofang CFO: Cao Aimin Accounting Manager: Wang Shaoyu
3. Consolidated Income Statement
Bengang Steel Plate Co., Ltd.
In RMB Yuan
Amount of the Current Amount of the Previous
Items
Term Term
I. Total revenue 22,513,900,380.76 22,841,569,834.06
Incl. Business income 22,513,900,380.76 22,841,569,834.06
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 22,334,153,580.28 22,663,251,749.52
Incl. Business cost 21,153,962,726.36 21,194,363,935.21
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 67,804,915.99 68,335,473.24
Sales expense 313,641,927.61 274,555,046.97
Administrative expense 585,533,471.48 853,928,341.18
Financial expenses 189,350,346.53 272,068,952.92
Asset impairment loss 23,860,192.31
Plus: gains from change of fair value (“-“ for loss)
38
Bengang Steel Plates Co., Ltd. Interim Report 2013
Investment gains (“-“ for loss)
Incl. Investment gains from affiliates
Exchange gains (“-“ for loss)
III. Operational profit (“-“ for loss) 179,746,800.48 178,318,084.54
Plus: Non business income 19,822,768.20 10,459,224.49
Less: Non-business expenses 3,170,147.09 144,176.66
Incl. Loss from disposal of non-current assets 3,170,147.09 135,564.71
IV. Gross profit (“-“ for loss) 196,399,421.59 188,633,132.37
Less: Income tax expenses 30,264,063.99 43,737,850.91
V. Net profit (“-“ for net loss) 166,135,357.60 144,895,281.46
Including: Net profit realized by the entity taken over before the
takover
Net profit attributable to the owners of parent company 167,484,002.73 145,181,307.69
Minor shareholders’ equity -1,348,645.13 -286,026.23
VI. Earnings per share: -- --
(I) Basic earnings per share 0.05 0.05
(II) Diluted earnings per share 0.05 0.05
VII. Other misc. incomes
VIII. Total of misc. incomes 166,135,357.60 144,895,281.46
Total of misc. incomes attributable to the owners of the parent
167,484,002.73 145,181,307.69
company
Total misc gains attributable to the minor shareholders -1,348,645.13 -286,026.23
Legal representative: Zhang Xiaofang CFO: Cao Aimin Accounting Manager: Wang Shaoyu
4. Income Statement of the Parent Co.
Bengang Steel Plate Co., Ltd.
In RMB Yuan
Items Amount of the Current Term Amount of the Previous Term
I. Turnover 21,628,143,637.61 21,649,175,912.98
Less: Operation cost 20,519,434,445.03 20,280,233,614.44
Business tax and surcharge 65,194,222.69 66,346,575.07
Sales expense 240,973,385.94 194,756,756.42
Administrative expense 570,756,358.16 835,828,008.90
Financial expenses 187,226,665.21 272,421,337.99
39
Bengang Steel Plates Co., Ltd. Interim Report 2013
Asset impairment loss 6,434,843.91
Plus: gains from change of fair value (“-“ for loss)
Investment gains (“-“ for loss)
Incl. Investment gains from affiliates
II. Operational profit (“-“ for loss) 38,123,716.67 -410,379.84
Plus: Non business income 16,479,841.21 9,822,005.06
Less: Non-business expenses 3,170,147.09 135,564.71
Incl. Loss from disposal of non-current assets 3,170,147.09 135,564.71
III. Total profit (“-“ for loss) 51,433,410.79 9,276,060.51
Less: Income tax expenses -2,996,831.22 0.00
IV. Net profit (“-“ for net loss) 54,430,242.01 9,276,060.51
V. Earnings per share -- --
(I) Basic earnings per share 0.02 0
(II) Diluted earnings per share 0.02 0
VI. Other misc gains 0.00 0.00
VII. Total of integrated income 54,430,242.01 9,276,060.51
Legal representative: Zhang Xiaofang CFO: Cao Aimin Accounting Manager: Wang Shaoyu
5. Consolidated Cash Flow Statement
Bengang Steel Plate Co., Ltd.
In RMB Yuan
Amount of the Current Amount of the Previous
Items
Term Term
I. Net cash flow from business operation
Cash received from sales of products and providing of services 15,689,753,186.00 15,181,381,842.10
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
40
Bengang Steel Plates Co., Ltd. Interim Report 2013
Net increase of repurchasing business
Tax returned 1,680,909.19 19,661,917.00
Other cash received from business operation 86,598,273.32 57,782,062.64
Sub-total of cash inflow from business activities 15,778,032,368.51 15,258,825,821.74
Cash paid for purchasing of merchandise and services 13,163,528,800.55 13,208,310,872.61
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 737,808,289.74 712,166,756.49
Taxes paid 757,984,106.57 444,662,134.67
Other cash paid for business activities 610,705,549.59 704,169,233.36
Sub-total of cash outflow from business activities 15,270,026,746.45 15,069,308,997.13
Cash flow generated by business operation, net 508,005,622.06 189,516,824.61
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment profit
Net cash retrieved from disposal of fixed assets, intangible assets, and
1,200.00
other long-term assets
Net cash received from disposal of subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to investment activities 1,200.00 0.00
Cash paid for construction of fixed assets, intangible assets and other
644,803,204.70 1,010,878,237.69
long-term assets
Cash paid as investment
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 644,803,204.70 1,010,878,237.69
Net cash flow generated by investment -644,802,004.70 -1,010,878,237.69
III. Cash flow generated by financing
Cash received as investment
Incl. Cash received as investment from minor shareholders
Cash received as loans 5,091,410,000.00 4,493,540,020.00
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Bengang Steel Plates Co., Ltd. Interim Report 2013
Cash received from bond placing
Other financing-related cash received
Subtotal of cash inflow from financing activities 5,091,410,000.00 4,493,540,020.00
Cash to repay debts 5,851,688,315.77 3,655,521,023.07
Cash paid as dividend, profit, or interests 373,630,840.06 624,871,720.81
Incl. Dividend and profit paid by subsidiaries to minor shareholders
Other cash paid for financing activities
Subtotal of cash outflow due to financing activities 6,225,319,155.83 4,280,392,743.88
Net cash flow generated by financing -1,133,909,155.83 213,147,276.12
IV. Influence of exchange rate alternation on cash and cash equivalents -1,545,608.13 -7,786,456.28
V. Net increase of cash and cash equivalents -1,272,251,146.60 -616,000,593.24
Plus: Balance of cash and cash equivalents at the beginning of term 3,620,975,109.53 3,242,956,479.92
VI. Balance of cash and cash equivalents at the end of term 2,348,723,962.93 2,626,955,886.68
Legal representative: Zhang Xiaofang CFO: Cao Aimin Accounting Manager: Wang Shaoyu
6. Cash Flow Statement of the Parent Co.
Bengang Steel Plate Co., Ltd.
In RMB Yuan
Amount of the Current Amount of the Previous
Items
Term Term
I. Net cash flow from business operation
Cash received from sales of products and providing of services 15,599,774,568.74 14,944,086,154.75
Tax returned 0.00 17,944,000.00
Other cash received from business operation 83,448,848.78 54,606,209.19
Sub-total of cash inflow from business activities 15,683,223,417.52 15,016,636,363.94
Cash paid for purchasing of merchandise and services 13,121,695,994.83 13,204,674,816.36
Cash paid to staffs or paid for staffs 711,677,716.95 695,267,026.97
Taxes paid 689,700,794.48 377,867,095.00
Other cash paid for business activities 568,162,927.56 665,281,271.21
Sub-total of cash outflow from business activities 15,091,237,433.82 14,943,090,209.54
Cash flow generated by business operation, net 591,985,983.70 73,546,154.40
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment profit
42
Bengang Steel Plates Co., Ltd. Interim Report 2013
Net cash retrieved from disposal of fixed assets, intangible assets, and
1,200.00
other long-term assets
Net cash received from disposal of subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to investment activities 1,200.00
Cash paid for construction of fixed assets, intangible assets and other
628,282,637.69 923,538,683.35
long-term assets
Cash paid as investment
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 628,282,637.69 923,538,683.35
Net cash flow generated by investment -628,281,437.69 -923,538,683.35
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 5,070,753,895.09 4,489,112,600.00
Cash received from bond placing
Other financing-related cash received
Subtotal of cash inflow from financing activities 5,070,753,895.09 4,489,112,600.00
Cash to repay debts 5,851,688,315.77 3,655,521,023.07
Cash paid as dividend, profit, or interests 372,589,598.06 604,812,878.14
Other cash paid for financing activities
Subtotal of cash outflow due to financing activities 6,224,277,913.83 4,260,333,901.21
Net cash flow generated by financing -1,153,524,018.74 228,778,698.79
IV. Influence of exchange rate alternation on cash and cash equivalents -1,545,608.13 -7,786,456.28
V. Net increase of cash and cash equivalents -1,191,365,080.86 -629,000,286.44
Plus: Balance of cash and cash equivalents at the beginning of term 3,480,999,428.60 3,079,794,798.31
VI. Balance of cash and cash equivalents at the end of term 2,289,634,347.74 2,450,794,511.87
Legal representative: Zhang Xiaofang CFO: Cao Aimin Accounting Manager: Wang Shaoyu
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Bengang Steel Plates Co., Ltd. Interim Report 2013
7. Statement of Change in Owners’ Equity (Consolidated)
Bengang Steel Plate Co., Ltd.
Amount of the Current Term
In RMB Yuan
Amount of the Current Term
Owners’ Equity Attributable to the Parent Company
Minor
Items Less: Common Total of owners’
Capital paid in (or Special Surplus shareholders’
Capital reserves Shares in risk Retained profit Others equity
share capital) reserves reserves equity
stock provision
I. Balance at the end of
3,136,000,000.00 8,822,821,134.76 311,224.81 934,045,040.35 2,387,628,114.61 34,756,303.72 15,315,561,818.25
last year
Plus: Change of
accounting policy
Correcting of
previous errors
Others
II. Balance at the
3,136,000,000.00 8,822,821,134.76 311,224.81 934,045,040.35 2,387,628,114.61 34,756,303.72 15,315,561,818.25
beginning of current year
III. Amount of change in
current term (“-“ for 7,889,682.39 104,764,002.73 0.00 -1,348,645.13 111,305,039.99
decrease)
(I) Net profit 167,484,002.73 -1,348,645.13 166,135,357.60
(II) Other misc. income
Total of (I) and (II) 167,484,002.73 -1,348,645.13 166,135,357.60
(III) Investment or
decreasing of capital by
owners
1. Capital inputted by
owners
2. Amount of shares paid
and accounted as owners’
equity
3. Others
(IV) Profit allotment -62,720,000.00 -62,720,000.00
1. Providing of surplus
reserves
2. Common risk provision
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Bengang Steel Plates Co., Ltd. Interim Report 2013
3. Allotment to the owners
-62,720,000.00 -62,720,000.00
(or shareholders)
4. Others
(V) Internal transferring of
owners’ equity
1. Capitalizing of capital
reserves (or to capital
shares)
2. Capitalizing of surplus
reserves (or to capital
shares)
3. Making up losses by
surplus reserves
4. Others
(VI) Special reserves 7,889,682.39 7,889,682.39
1. Provided this year 17,609,107.46 17,609,107.46
2. Used this term 9,719,425.07 9,719,425.07
(VII) Others
IV. Balance at the end of
3,136,000,000.00 8,822,821,134.76 8,200,907.20 934,045,040.35 0.00 2,492,392,117.34 0.00 33,407,658.59 15,426,866,858.24
this term
Amount of Last Year
In RMB Yuan
Amount of Last Year
Owners’ Equity Attributable to the Parent Company
Minor
Items Less: Common Total of owners’
Capital paid in (or Special Surplus shareholders’
Capital reserves Shares in risk Retained profit Others equity
share capital) reserves reserves equity
stock provision
I. Balance at the end of last
3,136,000,000.00 8,822,821,134.76 921,277,509.22 2,644,615,857.28 34,680,554.06 15,559,395,055.32
year
Plus: Retrospective
adjustment caused by merger
of entities under common
control
Plus: Change of
accounting policy
Correcting of
previous errors
Others
II. Balance at the beginning of
3,136,000,000.00 8,822,821,134.76 921,277,509.22 2,644,615,857.28 34,680,554.06 15,559,395,055.32
current year
III. Amount of change in
311,224.81 12,767,531.13 -256,987,742.67 75,749.66 -243,833,237.07
current term (“-“ for decrease)
(I) Net profit 69,379,788.46 75,749.66 69,455,538.12
(II) Other misc. income
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Bengang Steel Plates Co., Ltd. Interim Report 2013
Total of (I) and (II) 69,379,788.46 75,749.66 69,455,538.12
(III) Investment or decreasing
of capital by owners
1. Capital inputted by owners
2. Amount of shares paid and
accounted as owners’ equity
3. Others
(IV) Profit allotment 12,767,531.13 -326,367,531.13 -313,600,000.00
1. Providing of surplus
12,767,531.13 -12,767,531.13
reserves
2. Common risk provision
3. Allotment to the owners (or
-313,600,000.00 -313,600,000.00
shareholders)
4. Others
(V) Internal transferring of
owners’ equity
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3. Making up losses by
surplus reserves
4. Others
(VI) Special reserves 311,224.81 311,224.81
1. Provided this year 38,835,863.56 38,835,863.56
2. Used this term 38,524,638.75 38,524,638.75
(VII) Others
IV. Balance at the end of this
3,136,000,000.00 8,822,821,134.76 0.00 311,224.81 934,045,040.35 0.00 2,387,628,114.61 0.00 34,756,303.72 15,315,561,818.25
term
Legal representative: Zhang Xiaofang CFO: Cao Aimin Accounting Manager: Wang Shaoyu
8. Statement of Change in Owners’ Equity (Parent Co.)
Bengang Steel Plate Co., Ltd.
Amount of the Current Term
In RMB Yuan
Amount of the Current Term
Items Capital paid in (or share Less: Shares Special Surplus Common risk Total of owners’
Capital reserves Retained profit
capital) in stock reserves reserves provision equity
I. Balance at the end of last year 3,136,000,000.00 8,822,821,134.76 311,224.81 934,045,040.35 1,991,366,188.51 14,884,543,588.43
Plus: Change of accounting policy
Correcting of previous errors
Others
II. Balance at the beginning of current
3,136,000,000.00 8,822,821,134.76 0.00 311,224.81 934,045,040.35 0.00 1,991,366,188.51 14,884,543,588.43
year
III. Amount of change in current term 7,889,682.39 -8,289,757.99 -400,075.60
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Bengang Steel Plates Co., Ltd. Interim Report 2013
(“-“ for decrease)
(I) Net profit 54,430,242.01 54,430,242.01
(II) Other misc. income
Total of (I) and (II) 54,430,242.01 54,430,242.01
(III) Investment or decreasing of capital
by owners
1. Capital inputted by owners
2. Amount of shares paid and
accounted as owners’ equity
3. Others
(IV) Profit allotment -62,720,000.00 -62,720,000.00
1. Providing of surplus reserves
2. Common risk provision
3. Allotment to the owners (or
-62,720,000.00 -62,720,000.00
shareholders)
4. Others
(V) Internal transferring of owners’
equity
1. Capitalizing of capital reserves (or to
capital shares)
2. Capitalizing of surplus reserves (or
to capital shares)
3. Making up losses by surplus reserves
4. Others
(VI) Special reserves 7,889,682.39 7,889,682.39
1. Provided this year 17,609,107.46 17,609,107.46
2. Used this term 9,719,425.07 9,719,425.07
(VII) Others
IV. Balance at the end of this term 3,136,000,000.00 8,822,821,134.76 0.00 8,200,907.20 934,045,040.35 0.00 1,983,076,430.52 14,884,143,512.83
Amount of Last Year
In RMB Yuan
Amount of Last Year
Items Capital paid in (or share Less: Shares Special Surplus Common risk Total of owners’
Capital reserves Retained profit
capital) in stock reserves reserves provision equity
I. Balance at the end of last year 3,136,000,000.00 8,822,821,134.76 0.00 921,277,509.22 2,190,058,408.39 15,070,157,052.37
Plus: Change of accounting policy
Correcting of previous errors
Others
II. Balance at the beginning of current
3,136,000,000.00 8,822,821,134.76 0.00 0.00 921,277,509.22 0.00 2,190,058,408.39 15,070,157,052.37
year
III. Amount of change in current term
311,224.81 12,767,531.13 -198,692,219.88 -185,613,463.94
(“-“ for decrease)
(I) Net profit 127,675,311.25 127,675,311.25
(II) Other misc. income
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Bengang Steel Plates Co., Ltd. Interim Report 2013
Total of (I) and (II) 127,675,311.25 127,675,311.25
(III) Investment or decreasing of capital
by owners
1. Capital inputted by owners
2. Amount of shares paid and
accounted as owners’ equity
3. Others
(IV) Profit allotment 12,767,531.13 -326,367,531.13 -313,600,000.00
1. Providing of surplus reserves 12,767,531.13 -12,767,531.13
2. Common risk provision
3. Allotment to the owners (or
-313,600,000.00 -313,600,000.00
shareholders)
4. Others
(V) Internal transferring of owners’
equity
1. Capitalizing of capital reserves (or to
capital shares)
2. Capitalizing of surplus reserves (or
to capital shares)
3. Making up losses by surplus reserves
4. Others
(VI) Special reserves 311,224.81 311,224.81
1. Provided this year 38,835,863.56 38,835,863.56
2. Used this term 38,524,638.75 38,524,638.75
(VII) Others
IV. Balance at the end of this term 3,136,000,000.00 8,822,821,134.76 0.00 311,224.81 934,045,040.35 0.00 1,991,366,188.51 14,884,543,588.43
Legal representative: Zhang Xiaofang CFO: Cao Aimin Accounting Manager: Wang Shaoyu
48
Bengang Steel Plates Co., Ltd. Interim Report 2013
III. Company Profiles
Bengang Steel Plates Co., Ltd. (hereinafter referred to as “the Company”), as approved in Liao-Zheng (1997) No. 57 by Liaoning
Peoples Government on 27 March 1997, was incorporated as a joint stock limited company through public share offer of domestic
listed foreign currency denominated shares (B shares) in the Peoples Republic of China (the “PRC”) on 27 June 1997 by Benxi Iron
and Steel (Group) Co., Ltd. (“Bengang Group”), through reorganization of operations, assets and liabilities of its plants, namely, Steel
Smelting Plant, Primary Rolling Plant and Continuous Hot Rolling Plant.
As approved by China Securities Regulatory Commission (hereinafter referred to as “the CSRC”), the Company issued 400,000,000
B-shares at HKD2.38 each in Shenzhen Stock Exchange on 10 June 1997. On 3 November 1997, the Company issued another
120,000,000 A-shares (Renminbi common Shares) at RMB5.40 each, and listed in Shenzhen Stock Exchange since 15 January 1998.
The capital shares were totaled to 1,136,000,000 shares including 616,000,000 shares held by the promoter.
On 14 March 2006, according to the resolutions of the Shareholders Meeting regarding share equity relocation, the Share Equity
Relocation Scheme, Response to Bengang Steel Plate Co., Ltd. about Share Equity Relocation issued by Liaoning Provincial
Government State-owned Asset Administrative Committee, Bengang Group – the only holder of non-negotiable state-owned legal
person shares paid the consideration to the current shareholders to obtain the current option for the 40,800,000 shares of the total
616,000,000 shares it was holding. Shareholding positions have been registered with China Securities Depository & Clearing
Corporation Ltd. Shenzhen Office. However, the total amount of capital shares of Bengang Steel Plates Co., Ltd. was not changed
through the share equity relocation action.
According to the approval document “Zheng-Jian-Gong-Si-Zi [2006] No. 126” by China Securities Regulatory Commission on 30
June 2006, the Company was approved to place 2 billion Renminbi common shares particularly to Bengang Group and the proceeds
would be used to purchase the related assets of the Group. On the same day, Bengang Group received circular
Zheng-Jian-Gong-Si-Zi [2006] No. 127 issued by China Securities Regulatory Committee, and were exempted for the liability of
undertaking the purchase offer. The liability was caused by subscribing of the 2 billion new shares and the total shareholding was
thus increased to 2.5752 billion shares (accounting for 82.12% of the total capital shares of the Company). On 28 August 2006, as
approved by China Securities Depository & Clearing Corporation Ltd. Shenzhen Office, the registration and conditional placing
procedures of the 2 billion new shares were completed. On 28 September 2006, the privately placed shares were approved by
Shenzhen Stock Exchange to be placed in the stock market. The new shares were placed in the market with face value of RMB1.00
per share and the placing price was RMB4.6733 per share. The newly placed shares were restricted to be sold in 36 months when
they were registered to the account of Bengang Group.
Up to June 30 2013, the capital shares of Bengang Steel Plates Co., Ltd were amounted to 3,136,000,000 shares. The business license
was numbered 2100001049024. The registered address is: 18th Gangtie Road, Pingshan, Benxi, Liaoning Province. The registered
capital is RMB3,136,000,000. The legal representative is Xiaofang Zhang.
The parent company of Bengang Steel Plates Co., Ltd is Benxi Iron and Steel (Group) Co., Ltd. and the actual controller is the
State-owned Assets Supervision and Administration Commission of the State Council of Liaoning province. Bengang Steel Plates
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Bengang Steel Plates Co., Ltd. Interim Report 2013
Co., Ltd. is mainly involved in processing and trading of recycled metal (including nonferrous metal), steel & iron making, rolling,
and trading, oxygen making, special pre-shaped steel material, metal processing, goods and technology import & export (excluding
categories prohibited by the national government, constrained products can only be traded with special certificates), measuring
instruments, electronic & mechanical equipment, sales of steel, new industrial products, developing of technologies, recycling of gas
dust and waste oil (excluding dangerous materials), production of dangerous chemical materials.
IV. Principal Accounting Policies, Estimations and Correcting of Previous
Errors
1. Basis of preparation
The financial statements have been prepared on the going concern basis of actual trading and events and in accordance with the
requirements of the China Accounting Standards for Business Enterprises (CAS(2006)) issued by the Ministry of Finance(MOF), 38
specific criteria of the accounting standards for business enterprises, Application Materials of China Accounting Standards for
Business Enterprises, Interpretation and related Criteria of China Accounting Standards for Business Enterprises (hereinafter referred
to as “accounting standards for business enterprises”) and Announcement of the China Securities Regulatory Commission (No.
15 2010) issued by the China Securities Regulatory Commission.
2. Statement of compliance with China Accounting Standards for Business Enterprises
The financial statements present truly and completely the financial position, operation results and cash flows of the Company during
the reporting period in accordance with China Accounting Standards for Business Enterprises.
3. Accounting year
The Accounting year is from 1 January to 31 December.
4. Functional currency
The Companys functional currency is RMB
5. The accounting treatment for Business combination under/not under common control
(1) Business combination under common control
The assets and liabilities that the Company obtains in a business combination shall be measured on the basis of their carrying amount
in the combined party on the combining date. Where the accounting policy adopted by the combined party is different from that
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Bengang Steel Plates Co., Ltd. Interim Report 2013
adopted by the Company, the Company shall, according to accounting policy it adopts, adjust the relevant items in the financial
statements of the combined party, and shall, pursuant to the present Standard, recognize them on the basis of such adjustment.
As for the balance between the carrying amount of the net assets obtained by the Company and the carrying amount of the
consideration paid by it (or the total par value of the shares issued), the capital reserve shall be adjusted. If the capital reserve is not
sufficient to be offset, the retained earnings shall be adjusted.
The direct cost for the business combination of the Company shall, including the expenses for audit, assessment and legal services,
be recorded into the profits and losses at the current period.
The handling fees, commissions and other expenses for the issuance of equity securities for the business combination shall be
credited against the surplus of equity securities; if the surplus is not sufficient, the retained earnings shall be offset.
(2) Business combination involving entities not under common control
The Company shall, on the acquisition date, measure the assets given and liabilities incurred or assumed by an enterprise for a
business combination in light of their fair values, and shall record the balances between them and their carrying amounts into the
profits and losses at the current period.
The Company shall distribute the combination costs on the acquisition date and recognize acquirees identifiable assets, liabilities and
contingent liabilities on fair value.
The Company shall recognize the positive balance between the combination costs and the fair value of the identifiable net assets it
obtains from the acquiree as goodwill. The Company shall treat the negative balance between the combination costs and the fair
value of the identifiable net assets it obtains from the acquiree into the profits and losses of the current period.
As for the assets other than intangible assets acquired from the acquiree in a business combination (not limited to the assets which
have been recognized by the acquiree), if the economic benefits brought by them are likely to flow into the Company and their fair
values can be measured reliably, they shall be separately recognized and measured in light of their fair values. As for any intangible
asset acquired in a combination, if its fair value can be measured reliably, it shall be separately recognized as an intangible asset and
shall be measured in light of its fair value. As for the liabilities other than contingent liabilities acquired from the acquiree, if the
performance of the relevant obligations is likely to result in any out-flow of economic benefits from the Company, and their fair
values can be measured reliably, they shall be separately recognized and measured in light of their fair values. As for the contingent
liabilities of the acquiree obtained in a combination, if their fair values can be measured reliably, they shall separately be recognized
as liabilities and shall be measured in light of their fair values.
Deductible temporary differences acquired from the acquiree in business combination shall not be recognized if recognition criteria
for deferred tax assets are not met on the acquisition date. If new or further information indicates the condition has already existed on
the acquisition date within 12 months after the date of acquisition and the economic benefit brought by deductible temporary
differences is expected to be realized, the deferred tax assets shall be recognized and goodwill reduced simultaneously. If the
goodwill is not sufficient for deduction, the rest shall be put into profit or loss of current period. Apart from above situation, deferred
tax assets relevant to business combination shall be recognized and recorded into profit or loss of current period.
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Bengang Steel Plates Co., Ltd. Interim Report 2013
The intermediary costs and relevant management fee for the business combination not under same control paid by the acquirer,
including the expenses for audit, assessment and legal services, shall be recorded into the profits and losses at the current period. The
transaction expenses for the issuance of equity securities or debt securities for the business combination shall be recorded into the
initial recognition amount of equity securities or debt securities
6. Consolidation of Financial Statements
The scope of consolidation of consolidated financial statements is determined based on control. All the subsidies have been
consolidated into the scope of consolidation for this period ended.
The accounting policy and accounting period of the subsidiaries within the consolidation scope shall be in accordance with those of
the Company. If not, it is necessary to make the adjustment according to the Companys accounting policies and accounting period
when preparing the consolidated financial statements. For subsidiaries through acquisition that are not under common control, the
financial statements are adjusted according to fair value of net assets on the acquisition date. The consolidated financial statements
shall, on the basis of the financial statements of the company and its subsidiaries together with other relevant material, be prepared by
the company after the long term equity investments in the subsidiaries are adjusted through the equity method.
The impact of transactions between the Company and its subsidiaries and inter-subsidiaries for the consolidated statement of
financial position, consolidated statement of comprehensive income, consolidated statement of cash flows and consolidated statement
of changes of equity are eliminated when preparing the consolidated financial statements.
The non-controlling interests and profit or loss of the subsidiary shall be presented separately in the shareholders equity of the
consolidated balance sheet and under the item of net profit of the consolidated statement of comprehensive income.
Where losses assumed by the minority exceed the minoritys interests in the beginning equity of a subsidiary, the excess are charged
against the minoritys interests
If the parent company has a new subsidiary due to business combination under common control during a reporting period, it shall
adjust the beginning balance in the consolidated statement of financial position when preparing consolidated statement of financial
position. The revenue, expenses and profits of the subsidiaries from the acquisition date to the end of the reporting period are
included in the parent companys consolidated statement of comprehensive income. The cash flow of the subsidiaries from the
acquisition date to the end of the reporting period is included in the parent companys consolidated statement of cash flows. And
meanwhile the Company shall adjust the relevant items of the comparative financial statements as if the reporting entity for the
purpose of consolidation existed from the very beginning.
If it is not under common control, the parent company shall not adjust the beginning balance in the consolidated statement of
financial position when preparing consolidated statement of financial position. The revenue, expenses and profits of the subsidiaries
from the acquisition date to the end of the reporting period are included in the parent companys consolidated statement of
comprehensive income. The cash flow of the subsidiaries from the acquisition date to the end of the reporting period is included in
the parent companys consolidated statement of cash flows. For the business combination not under common control realized step by
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step and by multiple transactions, the shares held before the purchase date shall be revalued according to the fair value of the
purchase date. The difference between the fair value and the book value shall be recorded into current investment gains. If the shares
held before the purchase involves other comprehensive income, the comprehensive income shall be transferred to investment gain of
purchasing period.
If the Company disposes of a subsidiary within reporting period, the revenue, expenses and profits of the subsidiaries from the
beginning of the reporting period to the disposal date are included in the parent companys consolidated statement of comprehensive
income. The cash flow of the subsidiaries from the beginning of the reporting period to the disposal date are included in the parents
consolidated statement of cash flows. In case of disposal of some equities and other reasons, the Company loses control of previous
subsidiary. In such cases, the remaining equity investment shall be revalued according to the fair value of the date of losing control.
The difference, arising from the consideration for disposing the equity investment and the fair value of the remaining equity minus
the net assets calculated per the previous proportion of shares from the date of purchase, shall be recorded into the period of losing
control as the investment gain. The other comprehensive income relevant to the equity investment shall be transferred to current
investment gain when losing control.
The difference, arising from purchasing long term equity investment from non-controlling minority minus the identifiable net assets
calculated as per the new shareholding proportion of subsidiary, and the difference, arising from the consideration for disposing the
equity investment minus the net assets of the subsidiary relevant to the disposed part of long term equity investment, shall be offset
against capital premium of the capital reserves in the consolidated statement of financial position. If the capital reserve is insufficient
to dilute, the retained earnings shall be adjusted.
7. Recognition of cash and cash equivalents
For the purpose of preparing the statement of cash flows, the term “cash” refers to the cash on hand and the unrestricted deposit. And
the term “cash equivalents” refers to short-term (maturing within three months from acquisition) and highly liquid investments that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
8. Foreign currency transaction and translation of foreign currency financial statements
1) Foreign currency transaction
Foreign currency transactions are translated into RMB at the current rate at the day of transactions.
The foreign currency monetary items shall be translated at the spot exchange rate on the balance sheet date. The balance of exchange
arising from the difference between the spot exchange rate on the balance sheet date and the spot exchange rate at the time of initial
recognition or prior to the balance sheet date, except those arising from the raising of special foreign debt for the purchase or
construction of capitaliziable assets thus shall be capitalized according to the borrowing costs capitalization principle,
shall be recorded into the profits and losses at the current period. The foreign currency non-monetary items measured at the historical
cost shall still be translated at the spot exchange rate on the transaction date, of which the amount of functional currency shall not be
changed. The foreign currency non-monetary items measured at the fair value shall still be translated at the spot exchange rate on the
date of confirming the fair value and the balance of exchange arising from it shall be recorded into profits and losses at the current
period of disposal or capital reserves.
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2) Translation of foreign currency financial statements
The asset and liability items in the statement of financial position shall be translated at a spot exchange rate on the balance sheet date.
Among the owner's equity items, except the ones as "undistributed profits", others shall be translated at the spot exchange rate at the
time when they are incurred. The income and expense items in the statement of comprehensive income shall be translated at the spot
exchange rate of the transaction date. The balance arisen from the translation of foreign currency financial statements in compliance
with the aforesaid principle shall be presented separately under the owner's equity item of the statement of financial position.
When disposing an overseas business, an enterprise shall shift the balance, which is presented under the items of the owner's equities
in the statement of financial position and arises from the translation of foreign currency financial statements related to this oversea
business, into the disposal profits and losses of the current period. If the overseas business is disposed of partially, the enterprise shall
calculate the balance arising from the translation of foreign currency statements of the part of disposal based on the disposal rate and
shall shift them into the profits and losses of the current period.
9. Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments
1) Classification of financial instruments
According to the purpose of holding financial assets and financial liabilities, the Company classifies its financial assets and financial
liabilities as: financial assets or financial liabilities designated at fair value through current profit and loss, including: trading
financial investment, held-to-maturity investment; loans and receivables, available-for-sale investment and other financial liabilities.
2) Recognition and measurement of financial instruments
(1) The financial assets (financial liabilities) at fair value through profit or loss includes:
The financial assets (financial liabilities) at fair value through profit or loss are recognized initially at fair value (minus cash
dividends declared but not received or bond interest matured but not drawn yet). The relevant transaction cost is recognized in
current profit and loss when occurred.
The cash dividends or interest are recognized as investment income when the Company receives such financial assets. At the balance
sheet date, the Company recognizes the fair value changes in current profit and loss.
The Company recognizes the difference between initial recognition and fair value of the financial assets as investment income when
disposing the financial assets and at the same time adjusts the fair value changes in current profit and loss.
(2) Held-to-maturity investment
The Held-to-maturity investments are recognized initially at fair value (minus bond interest matured but not drawn yet) plus any
related transaction cost.
The held-to-maturity investments are measured at amortized cost using the effective interest rate. The interest income is recognized
as investment income. The effective interest will be determined at the initial recognition and will not be changed in the holding
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period or within a shorter applicable period.
When disposing the held-to-maturity investment, the difference between the investing proceeds and the carrying value is recognized
as investment income.
(3) Receivables
Receivables from selling products and rendering services or receivable of other company not including the receivables with quoted
price in the active market (including: accounts receivable, other receivables, notes receivable, prepayments, long-term receivables)
are measured at contract price; if the receivables is of financing nature, it shall be recognized at the present value initially.
When disposing the receivables, the difference between the proceeds and the carrying value is recognized in current profit and loss.
(4) Available for sale financial assets
Available-for-sale financial assets are initially recorded at the sum of fair values (deducting cash dividends that have been declared
but not distributed and bond interests that have matured but not been drawn) and transaction costs when acquired.
The Company recognizes the interest or cash dividends as investment income. At each balance sheet date, available-for-sale financial
assets are measured at fair value and the fair value changes are recognized in the capital reserve - other capital reserve.
The difference between the proceeds of the disposal and the carrying value should be recognized as investment income. And the
related fair value change in the shareholders equity should be transferred out, and recorded as investment income.
(5) Other financial liabilities
For other financial liabilities, they are initially recognized at fair value plus any directly attributable transaction costs. After the initial
recognition, the other financial liabilities are measured at amortized cost.
3) Determination and measurement of financial assets transfer
Where an enterprise has transferred nearly all of the risks and rewards related to the ownership of the financial asset to the transferee,
it shall stop recognizing the financial asset. If it retained nearly all of the risks and rewards related to the ownership of the financial
asset, it shall not stop recognizing the financial asset.
To judge whether the transfer of a financial asset can satisfy the conditions as prescribed in these Standards for stopping the
recognition of a financial asset, the enterprise shall follow the principle of the substance over form. Transfer of an entire financial
asset can be divided into partial financial assets transfer and entire financial asset transfer. If the transfer of an entire financial asset
satisfies the conditions for de-recognition, the difference between the amounts of the following 2 items shall be recorded in the
profits and losses of the current period:
(1) The book value of the transferred financial asset;
(2) The sum of consideration received from the transfer, and the accumulative amount of the changes of the fair value originally
recorded in the owners' equities (in the event that the financial asset involved in the transfer is a financial asset available for sale).
If the transfer of partial financial asset satisfies the conditions to stop the recognition, the entire book value of the transferred
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financial asset shall, between the portion whose recognition has been stopped and the portion whose recognition has not been stopped
(under such circumstance, the service asset retained shall be deemed as a portion of financial asset whose recognition has not been
stopped), be apportioned according to their respective relative fair value, and the difference between the amounts of the following 2
items shall be included into the profits and losses of the current period :
(1) The book value of the portion whose recognition has been stopped;
(2) The sum of consideration of the portion whose recognition has been stopped, and the portion of the accumulative amount of the
changes in the fair value originally recorded in the owner's equities which is corresponding to the portion whose recognition has been
stopped (in the event that the financial asset involved in the transfer is a financial asset available for sale).
If the transfer of financial assets does not satisfy the conditions to stop the recognition, it shall continue to be recognized as financial
assets and the consideration received shall be recognized as financial liabilities.
4) Recognition of termination of financial liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in part may the recognition of the financial liability
be terminated in all or partly.
Where the Company (debtor) enters into an agreement with a creditor so as to substitute the existing financial liabilities by way of
any new financial liability, and if the contractual stipulations regarding the new financial liability is substantially different from that
regarding the existing financial liability, it shall terminate the recognition of the existing financial liability, and shall at the same time
recognize the new financial liability.
Where an enterprise makes substantial revisions to some or all of the contractual stipulations of the existing financial liability, it shall
terminated the recognition of the existing financial liability or part of it, and at the same time recognize the financial liability after
revising the contractual stipulations as a new financial liability.
Where the recognition of a financial liability is totally or partially terminated, the enterprise concerned shall include into the profits
and losses of the current period the gap between the carrying amount which has been terminated from recognition and the
considerations it has paid (including the non-cash assets it has transferred out and the new financial liabilities it has assumed).
Where an enterprise buys back part of its financial liabilities, it shall distribute, on the date of repurchase, the carrying amount of the
whole financial liabilities in light of the comparatively fair value of the part that continues to be recognized and the part whose
recognition has already been terminated. The gap between the carrying amount which is distributed to the part whose recognition has
terminated and the considerations it has paid (including the non-cash assets it has transferred out and the new financial liabilities it
has assumed) shall be recorded into the profits and losses of the current period.
5). Determination of the fair value
The fair values of the financial assets or financial liabilities measured at fair value shall be determined by reference to the quoted
prices in the active market.
6). Impairment provision of the financial assets (not including accounts receivables)
The company shall carry out impairment review for the financial assets at the balance sheet date except for the financial assets at fair
value through profit or loss. Where there is any objective evidence proving that such financial asset has been impaired, an
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impairment provision shall be made.
(1) Impairment of available-for-sale financial assets
An impairment provision shall be made where the fair value of the held-to-maturity financial assets drops significantly at the balance
sheet date or the trend of decrease is expected not to be temporary after taking various factors into consideration. The accumulative
losses arising from the decrease of the fair value of the owners equity which was directly included shall be transferred out and
recorded as impairment loss.
Where any available-for-sale debt instruments is recognized as having suffered from any impairment loss, if there is any objective
evidence proving that the value of the said debt instruments has been restored, and it is objectively related to the events that occur
after such loss is recognized, the impairment-related losses as originally recognized shall be reversed and be recorded into the profits
and losses of the current period.
Impairment losses incurred by investment transactions of available-for-sale equity instruments shall not be reversed through profits
and losses.
(2) Impairment of held-to-maturity investment
The impairment of the held-to-maturity investment can be measured by reference to the measurement of the impairment of accounts
receivables.
(7) If investment held to mature is recategorized to sellable financial assets, please state th intention or evidence of change in
capability
None
10. Receivables
1. The recognition and provision for bad debt for the individually significant receivable
The recognition standard of bad debt provision for the individually significant receivable:
Individually significant receivables refer to accounts receivable over RMB10 million or other receivables over RMB5 million.
The provision for bad debt for the individually significant receivable:
The impairment test should be assessed individually for each individually significant receivable.If the there is evidence indicating the
receivables have been impaired, the difference between the present value of the future cash flows and the book value of receivables
shall be recognized as bad debt provision and shall be recorded into the profits and losses at the current period.
(1) Bad debt provision on receivable accounts with major amount individually
Basis of recognition or standard
amount of individual account with Balance of account receivable RMB10 million; other account receivable RMB5 million or over.
large amount
Impairment test shall be done individually. When evidence showing that impairment actually
Basis of bad debt provision occurred, bad debt provision shall be provided at the balance of book value over the predicted
future cash flow, and accounted into current gain/loss account.
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(2) Receivable accounts on which bad debt provisions are provided as groups
Name of the portfolio Basis of bad debt provision Basis of recognition for portfolios
Receivable account with minor
amount and tested individually and Age analysis method
not impaired
Bad debt provisions are provided on age analyze basis in the portfolio
[V] Applicable Not applicable
Age Rate for receivables (%) Rate for other receivables (%)
1-2 yrs 5% 5%
2-3 yrs 20% 20%
Over 3 yrs 100% 100%
Bad debt provisions are provided on percentage basis in the portfolio
[] Applicable; [V] Not applicable
Bad debt provisions are provided on other basis in the portfolio
[] Applicable; [V] Not applicable
(3) Receivable accounts with minor amount but bad debt provisions are provided individually
Basis of providing bad debt individually When there is solid evidence showing that it is not retrievable.
When there is solid evidence showing that the possibility of retrieving is minor, the
Basis of bad debt provision account shall be tested for impairment individually and bad debt provision shall be
provided at the estimated unrecoverable amount.
11. Inventories
(1) Inventory classification
Inventories include material in transit, raw material, low-valued consumables, work in process, finished goods,
materials for consigned processing etc.
(2) Pricing of inventory to be delivered
Pricing base: weighted average
(3) Recognition of realizable net value of inventory and providing of inventory impairment
provision
At the year end, complete check of the inventories shall be carried out and on the date of balance sheet, the
inventories shall be measured whichever is lower in accordance with the cost and the net realizable value.
The net realizable value of inventories (finished products, stock commodity, material etc.) held for direct
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selling in the daily business activity shall be calculated by deducting the estimated sale expense and relevant taxes
from the estimated sale price of inventories. The net realizable value of inventories for further processing in the
daily business activity shall be calculated by deducting the estimated cost of completion, estimated sale expense
and relevant taxes from the estimated sale price of inventories. The net realizable value of inventories held for the
execution of sales contracts or labor contracts shall be calculated on the ground of the contract price. If an
enterprise holds more inventories than the quantities subscribed in the sales contract, the net realizable value of
the excessive part of theInventories shall be calculated on the ground of the general sales price.
The Company shall make provision for loss on decline in value of inventories on the ground of each item of
inventories at the year end. For inventories with large quantity and relatively low unit prices, the provision for loss
on decline in value of inventories shall be made on the ground of the categories of inventories.
When the circumstances of deducting the inventory value have eliminated, the deducted amount should be
restored and written back within the original amount of impairment provision provided previously.
(4) Inventory system
Inventory system: perpetual inventory system
(5) Amortization of low-value consumables and packaging materials
Low price consumable
Basis of amortizing: one-off
Packaging materials
Basis of amortizing: one-off
12. Long-term equity investment
(1) Recognition of initial investment costs
1) Initial measurement
(1) The initial cost of long-term equity investment from business acquisition:
For the acquisition under the common control, if the consideration of the acquiring enterprise is that it makes payment in cash,
transfers non-cash assets, bears its debts, or issues equity securities, it shall, on the date of acquisition, regard the share of the book
value of the owner's equity of the acquired enterprise as the initial cost of the long-term equity investment. The difference between
the initial cost of the long-term equity investment and the payment borne by the acquiring party shall offset against the capital reserve.
If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted. The direct cost for the business combination of
the combining party, including the expenses for audit, assessment and legal services, shall be recorded into the profits and losses at
the current period.
For the combination not under the common control, the combination costs shall be the fair values, on the acquisition date, of the
assets paid, the liabilities incurred or assumed and the equity securities issued by the acquirer in exchange for the control on the
acquiree. Agency fees incurred for business combination by the acquirer, including audit fee, legal services, evaluation and
consultation fee, shall be recorded in current profits and losses when incurred. Trading costs of issuance cost of equity securities or
debt securities as the consideration for business combination by the acquirer shall be recorded in initial cost of such equity securities
or debt securities. For a business combination realized by two or more transactions of exchange, the combination costs shall be the
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sum of the costs of all separate transactions. Where any future event that is likely to affect the combination costs is stipulated in the
combination contract or agreement, if it is likely to occur and its effects on the combination costs can be measured reliably, the
acquirer shall record the said amount into the combination costs.
(2) The initial cost of the long-term equity investment other than from business acquisition:
The initial cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost which is actually
paid.
The initial cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fair value of the equity
securities issued.
The initial cost of a long-term equity investment of an investor shall be the value stipulated in the investment contract or agreement
(minus cash dividend or profit declared but not paid) except the unfair value stipulated in the contract or agreement.
If the exchange of non-monetary assets is commercial in nature and the fair values of both the assets received and surrendered can be
reliably measured, the fair value of the assets surrendered shall be used as the basis for determination the cost of the assets received,
unless there is any exact evidence showing that the fair value of the assets received is more reliable. Where any non-monetary assets
transaction does not meet the conditions as prescribed above, the carrying value and relevant payable taxes of the assets surrendered
shall be the initial cost of the assets received.
The initial cost of a long-term equity investment obtained by debt restructuring shall be ascertained on the basis of fair values.
3) Subsequent measurement and profit or loss recognition
(1) Subsequent measurement
The Company adopts cost method for the long term investment in subsidiary company and shall make an adjustment by employing
the equity method when it prepares consolidated financial statements.
For a long-term equity investment for which there is no quoted price in the active market and of which the fair value cannot be
reliably measured, if the investing enterprise has no joint control or significant influence over the invested entity, the cost method
shall be employed in the measurement.
A long-term equity investment of the investing enterprise that has joint control or significant influences over the invested entity shall
be measured by employing the equity method. If the initial cost of a long-term equity investment is more than the investing
enterprise' attributable share of the fair value of the invested entity's identifiable net assets for the investment, the initial cost of the
long-term equity investment may not be adjusted. If the initial cost of a long-term equity investment is less than the investing
enterprise' attributable share of the fair value of the invested entity's identifiable net assets for the investment, the difference shall be
included in the current profits and losses.
Where any change is made to the owner's equity other than the net profits and losses of the invested entity and if the percentage of
the share remains the same, the book value of the long-term equity investment shall be adjusted in accordance with the attributable
part calculated as per the proportion of the shares and simultaneously capital reserves (other capital reserves) shall be increased or
decreased accordingly.
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2) Recognition of gains and losses
Under the cost method, an investing enterprise shall, in accordance with the attributable share of the net profits or losses of the
invested entity, recognize the investment profits or losses except the dividend declared but unpaid, which is included in the payment
when acquiring the investment.
Under the equity method, the following factors shall be taken into consideration: if the accounting policies and accounting periods
adopted by the invested entity are different from those adopted by the Company, an adjustment shall be made to the financial
statements of the invested entity in accordance with the accounting policies and accounting periods of investing enterprise, the
impact on the net profit caused by the depreciation and amortization, which shall be based on the fair value of fixed assets and
intangible assets determined while acquiring the investment, as well as the related assets impairment; the offset of the unrealized
intercompany transaction profis between the Company and the jointly controlled enterprises and associates. After considering the
adjustments above, it shall, in accordance with the attributable share of the net profits or losses of the invested entity, recognize the
investment profits or losses.
When the Company recognizes the losses of invested enterprise, it shall follow the following sequence: First of all, offset the book
value of long term equity investment. If the book value of long term equity is insufficient to dilute, the investing enterprise shall
recognize the net losses of the invested enterprise until the book value of the long-term equity investment and other long-term rights
and interests which substantially form the net investment made to the invested entity are reduced to zero. If the company still has the
obligation to undertake extra losses per contract, and then estimated liabilities shall be recognized into current profit and loss
accordingly to the estimated obligation. When the invested enterprise realizes any net profit in the future period, the Company shall
reduce the unrecognised loss first and then make the reverse accounting treatment as above, reduce the book value of recognized
contingent liabilities, recover the book value of the long-term equity investment and other long-term right and interests which
substantially form the net investment made to the invested entity and at the same time, and recognize the income on investment.
In the investing period, when invested enterprise could provide consolidated financial statements, the calculation shall be based on
the net profit and other equity changes of the consolidated financial statements.
3) Criteria for the determination of joint control and significant influence over invested enterprise
The term "joint control" refers to the control over an economic activity in accordance with the contracts and agreements, which does
not exist unless the investing parties of the economic activity with unanimous consent on sharing the control power over the
relevant important financial and operating decisions. Where an investing enterprise and other parties do joint control over an invested
entity, the invested entity shall be their joint enterprise. The term "significant influences" refers to the power to participate in making
decisions on the financial and operating policies of an enterprise, but not to control or do joint control together with other parties over
the formulation of these policies. Where an investing enterprise is able to have significant influences on an invested entity, the
invested entity shall be its associate.
4) Impairment test and provision for impairment
For a long-term equity investment for which there is no quoted price in the active market and of which the fair value cannot be
reliably measured and the investing enterprise does not have significant influence over the invested entity, the impairment shall be
determined by the balance between its carrying value and the present value of its future cash flows discounted by the present market
rate of return of the similar financial assets.
For other long-term equity investment other than goodwill arising from the business combination, if the recoverable amount shows
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the recoverable amount of the long term equity investment is less than the book value, the balance shall be recognized as an
impairment loss.
Once any impairment loss of long-term equity investment is recognized, it shall not be switched back in the future accounting
periods.
(13) Investment properties
The term "investment properties" refers to the real estates held for generating rent and/or capital appreciation. The investment
properties include:
(1) The land use right which has already been rented;
(2) The land use right which is held and prepared for transfer after appreciation; and
(3) The building which has already been rented(including self-constructed or developed buildings for rent after completion or
buildings being built or developed in process for future rent).
The investment properties shall be measured by the cost model. For the investment properties measured at cost model and building
for rent, the same depreciation policy shall be adopted as that of fixed assets; for land use right, the same amortization policy shall be
adopted as that of intangible assets.
Where any evidence shows that there is possible investment properties impairment, the recoverable amount of the investment
properties shall be estimated. If the recoverable amount of the investment properties is lower than the book value, the impairment
loss shall be recognized accordingly
Once any impairment loss of investment properties is recognized, it shall not be switched back in the future accounting periods.
(14) Fixed assets
1. Recognition of Fixed assets
The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows:
(1) They are held for the sake of producing commodities, rendering labor service, renting or business management; and
(2) Their useful life is in excess of one fiscal year.
No fixed asset may be recognized unless it simultaneously meets the conditions as follows:
(1) The economic benefits pertinent to the fixed asset are likely to flow into the enterprise; and
(2) The cost of the fixed asset can be measured reliably.
2. Fixed assets depreciation
Fixed assets are depreciated under the straight line method. The depreciation rate is determined according to the category of assets,
the useful life and the expected residual rate. If the components of the Fixed assets have different useful life or provide the economic
benefits in a different way, then different depreciation rate or method shall be applied and the depreciation of the components shall be
calculated separately.
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Fixed assets acquired under finance lease is depreciated over the useful life if it is reasonably certain that the ownership of the leased
assets will be acquired upon expiry of lease, or over the shorter of lease term and useful life if it is not reasonably certain that the
ownership of the leased assets will be acquired upon expiry of lease.
Details of classification, depreciation period, salvage value rate and annual depreciation rate are as follows:
Classification Depreciation Period Salvage Value Rate (%) Depreciation Rate (%)
Plants and Buildings 8-30 years 0.00 3.33-12.50
Machinery 4-18 years 3.00 5.39-24.30
Transportation and other 5-18 years 3.00 5.39-19.40
equipments
3. Impairment testing method and impairment provision for fixed assets:
The Company shall, on the day of balance sheet, make a judgment on whether there is any sign of possible fixed assets impairment.
Where any evidence shows that there is possible fixed assets impairment, the recoverable amount of the fixed assets shall be
estimated. The recoverable amount shall be determined in light of the higher one of the net amount of the fair value of the fixed
assets minus the disposal expenses and the present value of the expected future cash flow of the fixed assets.
Where the measurement result of the recoverable amount indicates that an fixed asset's recoverable amount is lower than its carrying
value, the carrying value of the fixed asset shall be recorded down to the recoverable amount, and the reduced amount shall be
recognized as the loss of fixed asset impairment and be recorded as the profit or loss for the current period. Simultaneously, a
provision for the fixed asset impairment shall be made accordingly.
After the loss of fixed asset impairment has been recognized, the depreciation or amortization expenses of the impaired fixed asset
shall be adjusted accordingly in the future periods so as to amortize the post-adjustment carrying value of the fixed asset
systematically (deducting the expected net salvage value) within the remaining useful life of the fixed asset.
Once any loss of fixed asset impairment is recognized, it shall not be switched back in the future accounting periods.
Where there is any evidence indicating a possible impairment of fixed assets, the Company shall, on the basis of single item assets,
estimate the recoverable amount. Where it is difficult to do so, it shall determine the recoverable amount of the group assets on the
basis of the asset group to which the fixed asset belongs.
5. Other remarks
None
15. Construction-in-process
(1) Categories of construction-in-process
Constructions in process are accounted at each category.
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(2) Standard and timing for transferring of construction-in-process to fixed assets
The entire expenses occurred before the construction-in-process reaches useable status are recognized as the book value of
the fixed asset. When the construction-in-process has reached the useable status but not performed completion settlement, it is
transferred into fixed asset at estimated value according to the budget and actual costs since the day when it reaches the useable status.
Depreciation shall be provided according to the Companys policies about fixed asset depreciation. Upon completion of the
settlement process, the original estimated value should be adjusted according to the actual costs. However the depreciations already
provided are not going to be adjusted.
(3) Impairment test and providing of impairment provisions on construction-in-process
On each balance sheet date, the Company made assessment on whether or not there is any indication of
potential impairment of construction in progress.
In case any construction in process were impaired, its recoverable value shall be estimated. In case there is
evidence showing that any construction in process were impaired, the Compay shall estimate the recoverable
amount basing on the individual project. In case it is hard to estimate the recoverable value, it shall be evaluated
along with the group of constructions in process.
The recoverable amount of construction in progress is measured at the higher of the assets fair value less
costs to sell and the present value of the expected cash flow.
If the recoverable value is lower than the book value of the particular construction in process. The book value
of the construction shall be written down to the recoverable amount. The written down amount shall be recognized
as impairment loss of the project and accounted into cuurent gain/loss account. Impairment provisions shall be
provided correspondingly.
Impairment loss shall not be written back as soon as recognized.
16. Borrowing expenses
(1) Principle of the recognition of capitalized borrowing costs
1) Principle of the recognition of capitalized borrowing costs
The borrowing costs shall include interest on borrowings, amortization of discounts or premiums on borrowings, ancillary expenses,
and exchange balance on foreign currency borrowings.
Where the borrowing costs incurred to an enterprise can be directly attributable to the acquisition and construction or production of
assets eligible for capitalization, it shall be capitalized and recorded into the costs of relevant assets. Other borrowing costs shall be
recognized as expenses on the basis of the actual amount incurred, and shall be recorded into the current profits and losses.
The term "assets eligible for capitalization" shall refer to the fixed assets, investment real estate, inventories and other assets, of
which the acquisition and construction or production may take quite a long time to get ready for its intended use or for sale.
The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements:
(1) The asset disbursements have already incurred, which shall include cash, transferred non-cash assets or interest bearing debts paid
for the acquisition and construction or production activities for preparing assets eligible for capitalization;
(2) The borrowing costs has already incurred; and
(3) The acquisition and construction or production activities which are necessary to prepare the asset for its intended use or sale have
already started.
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Bengang Steel Plates Co., Ltd. Interim Report 2013
2) The capitalization period of borrowing costs
The capitalization period shall refer to the period from the commencement to the cessation of capitalization of the borrowing costs,
excluding the period of suspension of capitalization of the borrowing costs.
When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the capitalization of
the borrowing costs shall be ceased.
Where each part of a qualified asset under acquisition and construction or production is completed separately and is ready for use, the
capitalization of the borrowing costs in relation to this part of asset shall be ceased.
Where each part of a asset under acquisition and construction or production is completed separately and is ready for use or sale
during the continuing construction of other parts, but it can not be used or sold until the asset is entirely completed, the capitalization
of the borrowing costs shall be ceased when the asset is completed entirely.
3) The suspension of capitalization of borrowing costs
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period lasts
for more than 3 months, the capitalization of the borrowing costs shall be suspended. If the interruption is a necessary step for
making the qualified asset under acquisition and construction or production ready for the intended use or sale, the capitalization of
the borrowing costs shall continue. The borrowing costs incurred during such period shall be recognized as expenses, and shall be
recorded into the profits and losses of the current period, till the acquisition and construction or production of the asset restarts.
4) Method of calculating the capitalized amount of borrowing costs
For interest expense (minus the income of interests earned on the unused borrowing loans as a deposit in the bank or investment
income earned on the loan as a temporary investment) and the ancillary expense incurred to a specifically borrowed loan, those
incurred before a qualified asset under acquisition, construction or production is ready for the intended use or sale shall be capitalized
at the incurred amount when they are incurred, and shall be recorded into the costs of the asset eligible for capitalization;
The enterprise shall calculate and determine the to-be-capitalized amount of interests on the general borrowing by multiplying the
weighted average asset disbursement of the part of the accumulative asset disbursements minus the general borrowing by the
capitalization rate of the general borrowing used. The capitalization rate shall be calculated and determined in light of the weighted
average interest rate of the general borrowing.
Where there is any discount or premium, the amount of discounts or premiums that shall be amortized during each accounting period
shall be determined by the effective interest rate method, and an adjustment shall be made to the amount of interests in each period.
17. Intangible assets
(1) Pricing of intangible assets
(1). Initial measurement is based on cost upon acquisition.
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Bengang Steel Plates Co., Ltd. Interim Report 2013
The intangible assets shall be recorded at initial cost.
The cost of an intangible asset on acquisition include the purchase price, relevant taxes and other necessary disbursements which may
be directly attributable to bringing the intangible asset to the conditions for the expected purpose. If the payment for an intangible
asset is delayed beyond the normal credit conditions and it is of the financing nature, the cost of the intangible asset shall be
determined on the basis of the present value of the purchase price.
For intangible assets obtained from debt restructuring as settlement of liabilities from debtors, initial recognition is based on its fair
value, and the difference between the debt restructured and the fair value of the intangible assets are recognized in the current profit
and loss.
For intangible assets obtained from non-monetary transactions with commercial substance, and the fair value of the assets obtained or
surrendered can be reliably measured, the initial recognition of the asset obtained is based on the fair value of the asset surrendered,
unless there is strong evidence that the fair value of the asset obtained is more reliable. For intangible assets obtained through
non-monetary transactions which do not meet the above criteria, the initial recognition is based on the book value of the assets
surrendered and the relevant taxes payable. No gain or loss will be recognized.
For intangible assets obtained in a business combination under the same control, initial recognition is based on the book value of the
assets according to the record of the party being combined. If the intangible assets are obtained in a business combination not under
the same control, initial recognition is based on the fair value.
For self-developed intangible assets, the costs shall include the cost of material consumed in developing the intangible assets, labor
costs, registration cost, and amortization of other patents and royalty in the developing process, the capitalized interest expense and
other necessary expenditures directly attributable to intangible assets for the expected purpose.
(2). Subsequent Measurement
The Company shall analyze and judge the beneficial period of intangible assets upon acquisition.
Intangible assets with finite beneficial period shall be amortized under the straight-line method during the period when the intangible
asset can bring economic benefits to the enterprise. If it is unable to estimate the beneficial period of the intangible asset, it shall be
regarded as an intangible asset with uncertain service life and shall not be amortized.
2. Estimated useful lives of intangible assets with limited useful lives
Item Estimated useful life Criteria
Land use right 50 years Land use right certificate
3. Determination of intangible assets with uncertain useful lives
The Company shall review the useful lives of intangible assets with uncertain useful lives at each year end.
Per review, the useful life of the intangible assets is still uncertain.
4. Impairment of intangible assets
For intangible assets with finite beneficial period, impairment test shall be performed at end of the period if there is strong evidence
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Bengang Steel Plates Co., Ltd. Interim Report 2013
that impairment exists.
Impairment test shall be carried out for intangible assets with uncertain beneficial period at each end of the period. Impairment test
shall be performed for intangible assets and recoverable amount shall be estimated. Where there is any evidence indicating a possible
impairment of intangible assets, the Company shall, on the basis of single item assets, estimate the recoverable amount. If the
recoverable amount of the individual asset is undeterminable, the company shall determine the recoverable amount of the asset group
to which the intangible asset belongs.
The recoverable amount of the intangible assets shall be determined as higher of the net amount of the fair value of the intangible
assets less disposal expenses, and the present value of the expected future cash flows of the intangible assets.
When the recoverable amount of intangible asset is lower than the carrying value, the Company shall reduce the carrying value to the
recoverable amount. The reduction amount is recorded as impairment loss of intangible asset, and is recorded in the current profits
and losses. After the impairment has been recognized, the amortization of the impaired intangible assets shall be adjusted accordingly
in the future periods so as to amortize the adjusted carrying value of the intangible assets systematically (deducting the expected
salvage value) over the remaining useful life of the intangible assets.
Impairment loss on intangible assets shall not be reversed in the future accounting periods.
5. Classification criteria for internal research phase and development phase
The expenditures for its internal research and development projects of an enterprise shall be classified into research expenditures and
development expenditures.
Research phase refers to the phase of creative and planned investigation to acquire and study to acquire and understand new scientific
or technological knowledge.
Development phase refers to the phase during which the result of research phase or other knowledge is applied into certain projects
or designs for the manufacturing of new or substantially improved material, device and product.
6. Criteria of capitalization of development expenditure
Expenditures during the development phase of internal research and development projects shall be recognized as intangible assets
when they meet all the following criteria:
(1) It is feasible technically to complete the intangible assets for use or sale;
(2) The intention to complete and use or sell the intangible assets is present;
(3) The method of which the intangible assets generate economic benefits shall be proved, including being able to prove that there is
a potential market for the products manufactured by applying the intangible assets or there is a potential market for the intangible
assets itself or the intangible assets will be used internally;
(4) It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the support of
sufficient technologies, financial resources and other resources; and
(5) The development expenditures of the intangible assets can be reliably measured.
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Bengang Steel Plates Co., Ltd. Interim Report 2013
The development expenditures for its internal research and development projects of an enterprise shall be recorded into the profit or
loss for the current period if the above said conditions are not satisfied simultaneously. The research expenditures for its internal
research and development projects of an enterprise shall be recorded into the profit or loss for the current period when incurred.
18. Long-term expenses to be amortized
Long-term expenses are those which already occurred and amortizable to the current period and proceeding periods for over one year.
Long-term expenses are amortized straightly to the beneficiary period.
19. Asset transferring with repurchasing terms
When the Company had entered the repurchasing agreement on the asset sold when selling of product or assets, recognition
conditions shall be determined according to the related agreements. If the repurchasing agreement was a financial transaction, then it
would not be recognized as sales income whenever the product or asset were delivered. If the repurchasing amount is greater than the
sales price, the balance shall be accounted for interest and recorded under financial expenses.
20. Anticipated liabilities
When the Company is involved with any lawsuit, guarantee for liabilities, or capital reorganizing, and the amount
of the expectible asset or services to be delivered is able to be measured reliably, it is recognized as anticipated
liabilities.
(1) Recognition of expectible liabilities
When all of the following conditions are satisfied, expectible liabilities are recognized.
(1) This responsibility is a current responsibility undertaken by the Company;
(2) Executing of the obligation will cause outflowing of benefits.
(3) Amount of the liability can be reliably measured.
(2) Accounting of estimated liabilities
The estimated debts shall be initially measured in accordance with the best estimate of the necessary expenses for the performance of
the current obligation.
To determine the best estimate, an enterprise shall take into full consideration of the risks, uncertainty, time value of money, and
other factors pertinent to the Contingencies. If the time value of money is of great significance, the best estimate shall be determined
after discounting the relevant future outflow of cash.
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Bengang Steel Plates Co., Ltd. Interim Report 2013
The best estimate shall be conducted in accordance with the following situations, respectively:
If there is a continuous range for the necessary expenses and if all the outcomes within this range are equally likely to occur, the best
estimate shall be determined in accordance with the average estimate within the range, that is, the average of the upper and lower
limit.
If there is not a sequent range for the necessary expenses and if the outcomes within this range are not equally likely to occur, the
best estimate shall be determined as follows:
(1) If the Contingencies concern a single item, it shall be determined in the light of the most likely outcome.
(2) If the Contingencies concern two or more items, the best estimate should be calculated and determined in accordance with all
possible outcomes and the relevant probabilities.
When all or some of the expenses necessary for the liquidation of an estimated debts of an enterprise is expected to be compensated
by a third party, the compensation should be separately recognized as an asset only when it is virtually certain that the reimbursement
will be obtained. The amount recognized for the reimbursement should not exceed the book value of the estimated debts.
21. Revenue
1. Recognition Criteria for the Revenue from sale of goods
The Company has transferred to the buyer the significant risks and rewards of ownership of the goods; and retained neither
continuing managerial involvement which usually relates to the ownership nor exerts effective control over the goods sold. The
relevant amount of revenue can be measured reliably, the economic benefits related to the transaction will flow into the enterprise;
and the relevant costs incurred or to be incurred can be measured reliably. Revenue from the sale of goods may be recognized.
2. Recognition Criteria for the Revenue from alienating of Assets Use Rights
When it is probable that economic benefits in relation to the transaction will flow into the enterprise; and the amount of revenues can
be measured reliably. The Company shall ascertain the amount of revenues from the transfer of Assets Use Right based on the
following circumstances respectively:
(1) Interest income shall be calculated based on the duration of which the Company's cash is used by others and the actual interest
rate; or
(2) Royalty revenue shall be calculated based on the period and method of charging as stipulated in the relevant contract or
agreement.
3. Basis of recognizing service income
None
4. Basis and method to determine completion progress for income from service providing and construction contracts on
percentage basis
Revenue from providing labor services are recognized under the percentage of completion method if the outcome of the labor service
provision transaction can be reliably measured. Percentage completed is determined by measurement of work completed.
Reliably measurable refers to the situation that is satisfying all of the following conditions:
(1) The received amount is able to be measured reliably;
(2) The economic benefit may inflow to the Company;
(3) The completion percentage is able to be reliably measured.
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Bengang Steel Plates Co., Ltd. Interim Report 2013
(4) The costs happened and costs will happen can be measured reliably.
If the result of a transaction concerning the providing of labor services cannot be reliably measured at the balance sheet date, it shall
be measured as follows:
(1) If the cost of labor services incurred is expected to be compensated, the revenue from the providing of labor services shall be
recognized to the extent of the cost of labor services incurred, and the cost of labor services shall be recognized; or
(2) If the cost of labor services incurred is not expected to compensate, the cost incurred should be recognized in the current profit
and loss, and no revenue from the providing of labor services shall be recognized.
When a contract contains both providing of services and sales of products, they shall be treated seperately if
possible to be seperated; and shall be treated collectively as sales of products if impossible to be seperated.
22. Government allowance
1. Types of government subsidies
A government subsidy means the monetary or non-monetary assets obtained free of charge by the Company from the government.
Government subsidies consist of the government subsidies pertinent to assets and government subsidies pertinent to income.
2. Accounting treatment
The government subsidies pertinent to fixed assets and intangible assets acuquired and constructed shall be recognized as deferred
income and equally recognized over the useful lives of the relevant assets as non operating income;
The government subsidies pertinent to incomes to subsidize future expenses shall be recognized as deferred income and transferred to
non operating income in the period during which the expenses subsidized is recognized. Government subsidies to subsidize past
expenses or losses shall be recognized in the statement of comprehensive income in the period during which the subsidy is received.
23. Deferred income tax asset and deferred income tax liabilities
(1) Basis for recognition of deferred income tax assets
The deferred tax assets shall be reconized for all deductible temporary differences to the extent that taxable profit will be available
against which the deductible temporary differences can be utilized.
(2) Basis for recognition of deferred income tax liabilities
All taxable temporary differences shall be recognized as deferred tax liabilities with certain limited exceptions.
24. Operational leasing and financial leasing
(1) Accounting of operational leasing
(1). The rents paid for operating leases shall be recorded in the profits and losses of the current period by using the straight-line
method over each period of the lease term. The initial direct costs paid by the Company shall be recorded into the profits and losses
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Bengang Steel Plates Co., Ltd. Interim Report 2013
of the current period
If the lessor has shouldered any expense related to the lease which should have been borne by the Company, the Company shall
deduct these expenses from the total rental expense and the remaining rental expense shall be allocated to each period during the
lease term
(2). The rents collected from operating leases shall be recorded in the profits and losses of the current period by using the
straight-line method over each period of the whole lease term in which free lease period is included. The initial direct costs paid by
the Company shall be recorded into the profits and losses of the current period. The initial direct costs shall be capitalized if it is
material, and be allocated to each period as per the basis for rental revenue recognition.
If the Company has shouldered any expense related to the lease which should have been borne by the lessee, the company shall
deduct these expenses from the total rental revenue and the remaining rental revenue shall be allocated to each period during the
lease term.
(2) Accounting treatment of financed leasing
(1). Leased in asset
On the lease beginning date, a lessee shall record the lower one of the fair value of the leased asset and the present value of the
minimum lease payments on the lease beginning date as the initial book value, recognize the amount of the minimum lease payments
as the initial book value of long-term account payable, and treat the balance between the recorded amount of the leased asset and the
long-term account payable as unrecognized financing charges.
The lessee shall adopt the effective interest rate method to calculate and recognize the financing charge in the current period. The
unrecognized financing charge shall be amortized to each period during the lease term.
(3) Accounting treatment of renting back after sales
None
25. Sellable assets in possession
(1) Recognition of sellable assets in possession
Non-current assets satisfying all of the following conditions are recognized as sellable assets in possession:
(1) Resolutions had been made on selling of the asset by the Company;
(2) Irrevocable transferring agreement had been engaged;
(3) Transferring of the asset will be done within one year.
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Bengang Steel Plates Co., Ltd. Interim Report 2013
(2) Accounting treatment of sellable assets in possession
Non-current assets satisfying all of the following conditions are recognized as sellable assets in possession:
(1) Resolutions had been made on selling of the asset by the Company;
(2) Irrevocable transferring agreement had been engaged;
(3) Transferring of the asset will be done within one year.
26. Securitilization of asset
The Company securitilize partial receivable accounts by trusting the asset to particular entities, and the entities issue priority
securities backed by assets to the investors. The Company is the holder of secondary asset-backed securities which was restricted to
transfer until the principal and interests of the priority securities were paid back. As the service provider, the Company provides
routine maintanance and administration of the assets, making of annual disposal plan, engaging of asset disposal agreement and
periodic reports on the assets. Meanwhile, as the liquidity support institute, the Company provide support to the liquidity of the assets
when the principal of the priority asset securities were not fully repaid, until the shorted balance of interests and principals of the
securities were covered. The trusted assets shall be used to pay off the principal and interest of the priority asset securities with
priority after related taxes and expenses were paid. Balance of the trusted asset after the above can be regarded as gains of the
secondary securities and titled to the Company. The Company has literally kept most of the risks and rewards attached to the trusted
assets, therefore recognition of the trusted assets were not terminated. Meanwhile, the Company is holding the substaintial control
power over the particular entities, therefore they are included in the consolidation range.
The Company has already considerred the transferring of risks and benefits attached to the assets to other entities and the actual
controlling power over the particular entities when applying of accounting policies on the securitized financial assets, namely:
(1) Recognition of the financial asset is terminated as soon as most of the risk and benefit attached to it has been transferred off;
(2) Recognition of the financial asset is continued as long as most of the risk and benefit attached to it are under the possession of
the Company;
(3) If the Company hasnt transferred nor kept most of the risks and benefits of the asset, the Company shall review the actual control
power over the asset. In case the Company is not holding the controlling power, recognition of this financial asset shall be terminated
and the interests and liabilities occurred from transferring are recognized as asset or liabilities respectively. In case the Company is
holding the controllling power over the asset, then financial asset shall be recognized according to the level of involvement in the
financial asset.
27. Hedging instruments
1. Categories of hedging instruments
(1) Fair value hedging refers to hedging operations on the risks of fair value fluctuation of recognized asset or liability, and definit
commitments not recognized yet.
(2) Cashflow hedging refers to the hedging operations on the risks of change in cash flow. The cash flow was origined from a
particular risk most likely to occur upon a recognized asset or liability, or foreign currency exchange risk attached to an unrecognized
definit commitment.
(3) Offshore operation net investment hedging refers to the hedging operation on the exchange rate risks attached to offshore
operation net investment. Offshore operation net investment refers to the share of equity of overseas operational investment
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Bengang Steel Plates Co., Ltd. Interim Report 2013
attributable to the Company.
2. Defining of hedging relationship and recognition of the effectiveness of hedging:
At beginning of the hedging relationship, the Company provided official definition of such relationship. Official documents were
prepared about he hedging relationship, target of risk management and hedging strategies. The document stated the hedging
instruments, projects or transactions of the hedging, nature of the risks attached to it, and evaluation basis of the effectiveness of the
hedging instrument.
Hedging effectiveness means to what extent the fluctuating of fair value or cash flow of the hedging instrument may neutralize the
fair value or cash flow incurred by the hedged risk. The Company undertakes continuous evaluation on the effectiveness of the
hedging operation, to determine if it is highly effective in the defined accounting period. A hedging operation is regarded as highly
effective when all of the following conditions are satisfied:
(1) In the period following to the beginning of hedging, the fluctuating of fair value or cash flow of the hedging instrument can
greatly neutralize the fair value or cash flow incurred by the hedged risk.
(2) The actual neutralizing effect shall be ranged from 80% to 125%.
3. Accounting of hedging business
(1) Fair value hedging
Fair value of hedging derivate instruments are accounted into current gain/loss account. Variations caused by the hedging risks of the
fair value of target project are accounted into current gain/loss account. And the book value of the hedging project shall be adjusted
accordingly.
For fair value hedging related to financial instruments measured by amortized cost, the book value of hedging project shall be
adjusted, and amortized to the period from the date of adjustment to the date of mature, and accounted into current gain/loss account.
Amortizing on actual interest rate basis might begin right after adjustment of book value, and shall not later than the adjustment
performed against the fair value of hedging project as of the terminating of the hedging project.
In case of terminating of hedging project recognition, the balance of fair value which has not amortized yet shall be recognized as
current gain/loss.
In case of the hedging project is a definit commitment not recognized yet, the accumulated fair value variation caused by risk of fair
value of the commitment shall be recognized as an asset or liability, with related gains or losses are accounted into current gain/loss.
Variation of fair value of the hedging institution shall be accounted into current gain/loss.
(2) Cash flow hedging
The part of effective hedging in the hedging gains or losses is recognized as capital reserves immediately (other capital reserves), the
part of ineffective shall be accounted into current gain/loss.
In case of the hedging operation has influenced the current gain/loss, at the occurring of gains from hedging operation, or recognition
of financial expenses, or occurring of predicted sales, the amount recognized to capital reserves (other capital reserves) are
transferred to current gain/loss. If the hedging project is the cost of a non-financial asset or non-financial liability, the amount
recognized to capital reserves (other capital reserves) shall be transferred over to the initial recognition amount of the asset or liability
(or if recognized in the original capital reserves (other capital reserves), it shall be transferred in the same period in which the asset or
liability has influenced the gain/loss, and accounted into current gain/loss).
In case the predicted trade or definit commitment is not likely to happen, the accumulative gains or losses accounted into
shareholders equity shall be transferred over to current gain/loss. In case the heding instrument has expired, been sold, contract
terminated or executed (but not renewed or extended), or defining of hedging relationship has been withdrawn, then the amount
accounted into other misc gains previously shall not be transferred out until the expected trade or definit commitment has been
influencing the current gain/loss.
(3) Offshore business net investment hedging
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Bengang Steel Plates Co., Ltd. Interim Report 2013
Hedging of offshare net investment, including the monetary items as part of the net investment, are treated in similar way as cash
flow hedging. The part of gains or losses from the hedging instrument recognized as effective hedging are accounted into other misc
gains, while the part of ineffective is recognized as current gain/loss. At disposal of offshore business, all of the accumulated gains or
losses accounted to shareholders equity shall be transferred over to current gain/loss.
28. Change of main accounting policies and estimations
Is there any material change of accounting policies occurred in the year.
[] Yes [V] No
No accounting policy change with the Company.
(1) Change of accounting policies
Is there any change in accounting policies in the report period
[] Yes [V] No
No changes to accounting policies in the report period.
(2) Change of accounting estimations
Is there any change in accounting estimations in the report period
[] Yes [V] No
No change in accounting estimation in the report period.
29. Correction of accounting errors in previous period
Is there any accounting error with previous period found in the report period
[] Yes [V] No
Not any accounting error with previous period found in the report period
(1) Retrospective restatement
Is there any retrospective restatement on the accounting error with previous periods done in the report term
[] Yes [V] No
(2) Future adoption method
Is there any future adoption method applyable to accounting errors with previous periods found in the report period.
[] Yes [V] No
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Bengang Steel Plates Co., Ltd. Interim Report 2013
30. Other principal accounting policies, estimations and preparation method of financial
statements
None
V. Taxation
1. Main categories and rates of taxes
None
Tax
Class of tax Tax basis
rate
Calculated on tax law from selling goods and taxable services based on the calculation of output
VAT 17%
tax, after deduction of input tax deductibility of the current period, the balance part of VAT payable
Consumption tax Calculated and paid according to the regulations in the tax law
Operational tax Revenue of leasing and taxable services 5%
City maintenance and
Taxable upon the VAT, operation tax, and the assumption of VAT 7%
construction tax
Enterprise income tax Taxable income 25%
Property tax The balance of the buildings original costs minus 30% of original costs 1.2%
2. Preferential tax and approving documents
None
3. Other statements
None
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Bengang Steel Plates Co., Ltd. Interim Report 2013
VI. Enterprise Merger and Consolidating of Financial Statements
1. Particulars of the subsidiaries
The figures in the following two tables are expressed in RMB 0,000.00 unless otherwise stated .
(1) Subsidiaries obtained through incorporation or investment
In RMB
Balance of the
owners equity of
parent co. after
Amount for deducting of the
Balance of
deducting exceeding part of
other items
minor minority
Ownership Actual actually Minor
Full name of Business Registered Business Share Voting shareholders shareholders
of the Reg. Add. investment formed net Consolidated shareholders’
the subsidiary property capital Scope proportion % power % equity in the share of loss over
subsidiary at year end investment equity
minor the share of
in the
shareholders minority
subsidiaries
equity shareholders in
the owners
equity at
beginning of year
Guangzhou
Bengang Sales of
Fully-owned Guangzhou Sales 100.00 100.00 100% 100% Yes
Trade Co., steel
Ltd.
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Bengang Steel Plates Co., Ltd. Interim Report 2013
Shanghai
Bengang Sales of
Fully-owned Shanghai Sales 1,920.00 1,920.00 100% 100% Yes
Metallurgy steel
Tech. Ltd.
Bengang Steel
Production
Plate
Fully-owned Liaoyuang Production 1,000.00 and sales 52,989.98 100% 100% Yes
Liaoyang Orel
of ore ball
Ball Co., Ltd.
Dalian
Benruitong
Automobile Sales of
Holding Dalian Production 10,000.00 6,500.00 65% 65% Yes 3,340.77
Material steel plates
Technologies
Co., Ltd.
Bengang
Stainless Production
Cool-rolling Fully-owned Dandong Production 120,000.00 and sales 120,000.00 100% 100% Yes
(Dandong) of steel
Co., Ltd.
Supplementary remarks on subsidiaries obtained through incorporation or investment
(2) Subsidiaries procured through merger of entities under common control
In RMB
Balance of Amount for Balance of the
Ownership Actual other items Minor deducting owners equity of
Full name of Business Registered Business Share Voting
of the Reg. Add. investment actually Consolidated shareholders’ minor parent co. after
the subsidiary property capital Scope proportion % power %
subsidiary at year end formed net equity shareholders deducting of the
investment in equity in the exceeding part of
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Bengang Steel Plates Co., Ltd. Interim Report 2013
the minor minority
subsidiaries shareholders shareholders share
equity of loss over the
share of minority
shareholders in the
owners equity at
beginning of year
Changchun
Bengang Sales of
Fully-owned Changchun Sales 50.00 -135.51 100% 100% Yes
Steel Sales steel
Ltd.
Haerbin
Bengang Sales of
Fully-owned Harbin Sales 50.00 42.34 100% 100% Yes
International steel
Trading Ltd.
Nanjing
Bengang
Sales of
Steel Fully-owned Nanjin Sales 115.00 208.14 100% 100% Yes
steel
Material
Sales Ltd.
Wuxi
Bengang Sales of
Fully-owned Wuxi Sales 100.00 93.67 100% 100% Yes
Steel Sales steel
Ltd.
Xiamen
Bengang Sales of
Fully-owned Xiamen Sales 50.00 109.57 100% 100% Yes
Steel Sales steel
Ltd.
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Bengang Steel Plates Co., Ltd. Interim Report 2013
Yantai
Bengang Sales of
Fully-owned Yantai Sales 50.00 1,960.03 100% 100% Yes
Steel Sales steel
Ltd.
Tianjin
Bengang Sales of
Fully-owned Tianjin Sales 300.00 3,331.81 100% 100% Yes
Steel Trading steel
Ltd.
Supplementary remarks on subsidiaries obtained through merger of entities under common control
(3) Subsidiaries procured through merger of entities under different control
In RMB
Balance of the owners
equity of parent co. after
Amount for
Balance of deducting of the
deducting minor
other items exceeding part of
Full name Ownership Actual Minor shareholders
Reg. Business Registered Business actually formed Share Voting minority shareholders
of the of the investment Consolidated shareholders’ equity in the
Add. property capital Scope net investment proportion % power % share of loss over the
subsidiary subsidiary at year end equity minor
in the share of minority
shareholders
subsidiaries shareholders in the
equity
owners equity at
beginning of year
Supplementary remarks on subsidiaries obtained through merger of entities under different control
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Bengang Steel Plates Co., Ltd. Interim Report 2013
2. Entities with special purposes or entities on which the Company has cotrolling power
thorugh entrusted operation or leasing
In RMB
Balance of assets and liabilities recognized in the consolidated
Name Main trades with the Company
financial statements
Other remarks on entities with special purpose or entities under control by entrustment or leasing
3. Change of consolidation range
Change of consolidation range:
No change of consolidation range occurred in the report period
[] Applicable; [V] Not applicable
4. Entities included or excluded in the consolidation range in the report period
Subsidiaries, entities with special purpose, or entities on which the Company has cotrolling power thorugh entrusted operation or
leasing added to the consolidation range in the report period.
In RMB
Name Net asset at end of term Net profit of the current term
Subsidiaries, entities with special purpose, or entities on which the Company has cotrolling power thorugh entrusted operation or
leasing excluded from the consolidation range in the report period.
In RMB
Net profit from beginning of year
Name Net asset at day of disposal
to the date of disposal
Supplementary statements on entities newly consolidated or eliminated from the consolidation
5. Merger of entities under common control in the report term
In RMB
Cash flow for
Recognition basis of Income from the Net profit of the
Substaintial business activities
Entities taken over entities under beginning of period period until the date
controller of the period until
common control to the date of merger of merger
the date of merger
Supplementary statements on merger of entities under common control
6. Merger of entities under different control in the report term
In RMB
80
Bengang Steel Plates Co., Ltd. Interim Report 2013
Entities taken over Amount of goodwill Accounting of goodwill
Supplementary statements on merger of entities under different control
7. Subsidiaries reduced for disposal of shares and lose of control power
Name of the subsidiaries Date of disposal Recognition of gain/loss
Supplementary statements on subsidiaries reduced by disposing of share equities
8. Reverse acquisition occurred in the report period
Goodwill recognized in merger
Basis for recognition of reverse
The undertaker Recognition of merger cost or accounting basis of current
acquisition
gain/loss
Supplementary remarks on reverse acquisition
9. Takeover occurred in the report period
In RMB
Type of takeover Main assets taken over Main liabilities taken over
Takeover under common control Items Amount Items Amount
Takeover under different control Items Amount Items Amount
Supplementary remarks on takeover
10. Exchange rate of main accounts of overseas businesses
VII. Notes to Items in the Consolidated Financial Statements
1. Monetary fund
In RMB
End of term Beginning of term
Items Amount of Exchange Amount of Exchange
Amount RMB Amount RMB
foreign currency rate foreign currency rate
Cash: -- -- 236,410.92 -- -- 18,088.64
RMB -- -- 236,410.92 -- -- 18,088.64
Bank account: -- -- 2,348,487,552.01 -- -- 3,540,890,520.75
RMB -- -- 2,339,919,800.33 -- -- 3,519,720,403.11
HKD 131.68 0.7966 104.90 128.32 0.8109 104.05
USD 1,369,307.88 6.1787 8,460,542.60 3,350,473.44 6.2855 21,059,401.32
81
Bengang Steel Plates Co., Ltd. Interim Report 2013
EURO 13,298.92 8.0536 107,104.18 13,298.58 8.3176 110,612.27
Other monetary capital -- -- 67,213,946.56 -- -- 80,066,500.14
RMB -- -- 67,213,946.56 -- -- 80,066,500.14
Total -- -- 2,415,937,909.49 -- -- 3,620,975,109.53
Please state individually on accounts under pledge, mortgage, frozen, placed in overseas bank account, or with potential risk of
retrieving
Details of monetary capital under restriction:
Items Closing balance Openning balance
Deposit for bank accepted drafts 67,213,946.56 40,066,500.14
Guarantee deposit for L/C 40,000,000.00
Fix deposit or notice deposit used for guarantee
Total 67,213,946.56 80,066,500.14
2. Transactional financial assets
(1) Transactional financial assets
In RMB
Items Fair value at end of term Fair value at beginning of term
(2) Transactional financial assets with restriction to liquefy
In RMB
Restriction for sale or other material restriction on
Items Amount at end of term
liquefying
(3) Remarks on hedging instruments and hedging trades
None
3. Notes receivable
(1) Categories of notes receivable
In RMB
Categories End of term Beginning of term
Bank acceptance 3,531,940,793.15 2,942,033,786.43
Commercial acceptance
Total 3,531,940,793.15 2,942,033,786.43
82
Bengang Steel Plates Co., Ltd. Interim Report 2013
(2) Notes receivable under pledge
In RMB
Issuer Date of issue Expired on Amount Note
Shanghai Baiying Steel
Jan 23 2013 July 22, 2013 30,000,000.00
& Iron Co., Ltd.
Anyue Auto Material
May 22 2013 Nov 15 2013 28,000,000.00
Co., Ltd.
Shanghai Minxingda
International Trade Co., May 31, 2013 Sept 15 2013 20,622,781.57
Ltd.
Qingdao Jinhongjun
Feb 27 2013 Aug 27 2013 20,000,000.00
Industry Co., Ltd.
Foshan Jieteng Metal
Jun 7 2013 Nov 27 2013 16,850,000.00
Material Co., Ltd.
Total -- -- 115,472,781.57 --
(3) Notes transferred to account receivable for the issuer is not able to execute the liability,
and notes endorsed to other parties but are not mature yet at the end of period
Notes transferred to account receivable due to failure of the issuer
In RMB
Issuer Date of issue Expired on Amount Note
Remarks
None
Notes endorsed to other parties but not due
In RMB
Issuer Date of issue Expired on Amount Note
Zhonggang Steel & Iron
Jan 24 2013 July 24 2013 47,300,000.00
Co., Ltd.
Shanghai Baiying Steel
Feb 25 2013 Aug 15 2013 38,000,000.00
& Iron Co., Ltd.
Zhonggang Steel & Iron
Mar 19 2013 Sept 15 2013 34,000,000.00
Co., Ltd.
Liaoning Shenjiao
International Trade Co., Apr 17 2013 Oct 15 2013 34,000,000.00
Ltd.
Zhonggang Steel & Iron
Feb 28 2013 Jul 15 2013 29,000,000.00
Co., Ltd.
83
Bengang Steel Plates Co., Ltd. Interim Report 2013
Total -- -- 182,300,000.00 --
Remarks
As of June 30 2013, the Company has nots endorsed to others but not due amounted to RMB8,044,845,255.72.
Remarks on commercial accepted notes already discounted or put into pledge
None
4. Dividend receivable
In RMB
Beginning of Increased this Decreased this Cause for not Impairment of
Items End of term
term period period retrieved the account
In which: -- -- -- -- -- --
In which: -- -- -- -- -- --
Remarks
5. Interest receivable
(1) Interest receivable
In RMB
Items Beginning of term Increased this period Decreased this period End of term
(2) Overdue interests
In RMB
Loan provided by Days overdue Amount of interests overdue
(3) Statement on interest receivable
6. Account receivable
(1) Account receivable presented on categories
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Categories
Proportion Proportion Proportion
Amount Amount Amount Amount Proportion %
% % %
Receivables with major
0.00 0% 0.00 0% 0.00 0% 0.00 0%
individual amount and bad
84
Bengang Steel Plates Co., Ltd. Interim Report 2013
debt provision provided
individually
Receivables provided bad debt provision in groups
353,922,39 133,338,15 418,416,0 133,338,152.
Group 1: on age basis 100% 37.67% 100% 31.87%
0.49 2.02 57.15 02
353,922,39 133,338,15 418,416,0 133,338,152.
Sub-total of group 100% 37.67% 100% 31.87%
0.49 2.02 57.15 02
353,922,39 133,338,15 418,416,0 133,338,152.
Total -- -- -- --
0.49 2.02 57.15 02
Remarks on categories of receivable account
1、 The recognition and provision of bad debt for the individually significant receivable
The recognition standard of bad debt provision for the individually significant receivable:
Recognition of major single amount account: Account receivable with balance over RMB10 million.
The provision of bad debt for the individually significant receivable:
The impairment test should be assessed individually for each individually significant receivable. If the there is evidence indicating
the receivables have been impaired, the difference between the present value of the future cash flows and the book value of
receivables shall be recognized as bad debt provision and shall be recorded into the profits and losses at the current period.
2、 The recognition and provision of bad debt for the individually significant receivable with high credit risk in group assessment:
Basis of recognition for portfolios
The portfolio: Receivable account with minor amount and tested individually and not impaired
Bad debt provision provided in groups (age group, balance percentage, or else)
The portfolio: Age analysis method
Bad debt provisions provided on age groups
Percentage of bad debt for Accounts receivables (%) Percentage of bad debt for Other receivables (%)
Within 1 yr, (included)
1-2 yrs (included) 5_5
2-3 yrs (included)_20_20
Over 3 years _100_100
3. Receivable accounts with minor amount but bad debt provision provided individually upon
(1) Reason of providing bad debt individually: concrete evidence showing that the account is irretrievable
(2) Basis of providing bad debt provisions:
When concrete evidence showing that the possibility of retrieving is very little, it will be examined individually, and bad debt
provision shall be provided according to the future irretrievable amount predicted.
Receivable accounts with large amount individually and bad debt provisions were provided
[] Applicable; [V] Not applicable
85
Bengang Steel Plates Co., Ltd. Interim Report 2013
Account receivable in the portfolio which are provided bad debt provision on age basis
[V] Applicable Not applicable
In RMB
End of term Beginning of term
Book balance Book balance
Age
Proportion Bad debt provision Proportion Bad debt provision
Amount Amount
% %
within 1 yr
In which: -- -- -- -- -- --
193,172,186.93 54.58% 257,665,853.59 61.58%
Subtotal of within
193,172,186.93 54.58% 257,665,853.59 61.58%
1 year
1-2 years 22,476,366.56 6.35% 1,123,818.33 22,476,366.56 5.37% 1,123,818.33
2-3 years 7,574,379.14 2.14% 1,514,875.83 7,574,379.14 1.81% 1,514,875.83
Over 3 yrs 130,699,457.86 36.93% 130,699,457.86 130,699,457.86 31.24% 130,699,457.86
Total 353,922,390.49 -- 133,338,152.02 418,416,057.15 -- 133,338,152.02
Receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
[] Applicable; [V] Not applicable
Receivable accounts in the portfolio on which bad debt provisions are provided on other basis
[] Applicable; [V] Not applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of period
[] Applicable; [V] Not applicable
(2) Receivable accounts written back or retrieved in the report period
In RMB
Bad debt provision
Description of the receivable Reason to write back Basis of original bad Amount written back or
provided before writing
accounts or retrieve debt provision retrieved
back or retrieving
Bad debt provisions on receivable accounts with single large amount or minor amount but tested individually at end of report period
In RMB
Description of the
Book balance Amount of bad debt Providing rate (%) Reason
receivable accounts
Remarks on receivable accounts with minor single amount but with greater risks after combining with accounts with similar risks:
None
(3) Receivable accounts actually written off in the report period
In RMB
86
Bengang Steel Plates Co., Ltd. Interim Report 2013
Name of the Property of the Reason of writing Occurred under
Date of written off Amount written off
companies receivable account off related relationship
Remarks on writing off of receivable accounts
None
(4) Particulars about the receivable accounts due from shareholders with 5% or over of the
Company’s shares
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
(5) Top 5 debtors in the receivable accounts
In RMB
Relation with the Portion in total
Name of the companies Amount Ages
Company receivables
Huayou Steel Tube Co.,
Client 23,828,708.55 within 1 yr 6.73%
Ltd. Yangzhou Branch
Benxi Steel (Group) within 1 year, including
Industrial Development Related parties 19,305,998.29 RMB305.6 thousand 5.45%
Co., Ltd. over 1 year
Benxi Steel (Group)
Metallurgy Residues Co., Related parties 14,760,352.57 within 1 yr 4.17%
Ltd.
Wanfangdian Bearing
Client 13,807,413.43 within 1 yr 3.9%
Co., Ltd.
within 1 year, including
Benxi Steel (Group)
Related parties 11,691,804.74 RMB1.3398 million over 3.3%
Machinery Co., Ltd.
1 year
Total -- 83,394,277.58 -- 23.55%
(6) Account due from related parties
In RMB
Name of the companies Relation with the Company Amount Portion in total receivables
Benxi Steel (Group)
Same parent 1,141,749.27 0.32%
Electronics Co., Ltd.
Benxi Steel (Group) Same parent 11,691,804.74 3.3%
87
Bengang Steel Plates Co., Ltd. Interim Report 2013
Machinery Co., Ltd.
Benxi Steel (Group)
Same parent 11,573,084.30 3.27%
Construction Co., Ltd.
Benxi Steel (Group) Industrial
Same parent 19,305,998.29 5.45%
Development Co., Ltd.
Benxi Steel New Business
Same parent 4,287,668.25 1.21%
Development Co., Ltd.
Benxi Steel (Group)
Construction & Repairing Co., Same parent 911,504.35 0.26%
Ltd.
Benxi Steel (Group)
Same parent 14,760,352.57 4.17%
Metallurgy Residues Co., Ltd.
Benxi Steel (Group) Medical
Same parent 885,223.36 0.25%
Co. Ltd.
Benxi Steel (Group) Thermal
Same parent 8,691,189.89 2.46%
Power Development Co., Ltd.
Total -- 73,248,575.02 20.69%
(7) Recognition of receivable accounts terminated
In RMB
Items Amount terminated Gain/loss related to termination
(8) For securitization on receivable accounts, please provide the amount of asset and liability
formed by continuous involving
In RMB
Items End of term
Assets:
Liabilities:
7. Other account receivable.
(1) Other receivable account on categories
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Categories
Proportio Proportio Proportion Proportio
Amount Amount Amount Amount
n% n% % n%
88
Bengang Steel Plates Co., Ltd. Interim Report 2013
Other receivables provided bad debt provision in groups
285,890,757. 51,817,017.3 273,608,645.
Group 1: on age basis 99.4% 18.12% 99.37% 51,817,017.32 18.94%
68 2 40
285,890,757. 51,817,017.3 273,608,645.
Sub-total of group 99.4% 18.12% 99.37% 51,817,017.32 18.94%
68 2 40
Other account receivable
with minor individual
1,740,000.00 0.6% 1,740,000.00 0.63%
amount but bad debt
provision is provided
287,630,757. 51,817,017.3 275,348,645.
Total -- -- -- 51,817,017.32 --
68 2 40
Remarks on other types of receivable accounts
1、 The recognition and provision of bad debt for the individually significant receivable
The recognition standard of bad debt provision for the individually significant receivable:
Recognition of major single amount account: Other account receivable with balance over RMB5 million.
The provision of bad debt for the individually significant receivable:
The impairment test should be assessed individually for each individually significant receivable. If the there is evidence indicating
the receivables have been impaired, the difference between the present value of the future cash flows and the book value of
receivables shall be recognized as bad debt provision and shall be recorded into the profits and losses at the current period.
2、 The recognition and provision of bad debt for the individually significant receivable with high credit risk in group assessment:
Basis of recognition for portfolios
The portfolio: Receivable account with minor amount and tested individually and not impaired
Bad debt provision provided in groups (age group, balance percentage, or else)
The portfolio: Age analysis method
Bad debt provisions provided on age groups
Age Percentage of bad debt for Accounts receivables (%) Percentage of bad debt for Other receivables (%)
Within 1 yr, (included) __
1-2 years (included) _5_5
2-3 yrs (included)_20_20
Over 3 years _100_100
3. Receivable accounts with minor amounts but provided bad debt provisions individually
(1) Reason of providing bad debt individually: concrete evidence showing that the account is irretrievable
(2) Basis of providing bad debt provisions:
When there is solid evidence showing that the possibility of retrieving is minor, the account shall be tested for impairment
individually and bad debt provision shall be provided at the estimated unrecoverable amount.
Other receivable accounts with major single amount and bad debt provision drawn upon them
[] Applicable; [V] Not applicable
Other receivable accounts in the portfolio on which bad debt provisions are provided on age basis
[V] Applicable Not applicable
In RMB
89
Bengang Steel Plates Co., Ltd. Interim Report 2013
End of term Beginning of term
Book balance Book balance
Age
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on % on %
within 1 yr
In which:
220,459,168.21 76.65% 208,177,055.93 75.6%
Subtotal of within 1 year 220,459,168.21 76.65% 208,177,055.93 75.6%
1-2 years 6,457,408.04 2.25% 322,870.40 6,457,408.04 2.35% 322,870.40
2-3 years 9,350,043.14 3.25% 1,870,008.63 9,350,043.14 3.4% 1,870,008.63
Over 3 yrs 51,364,138.29 17.86% 49,624,138.29 51,364,138.29 18.65% 49,624,138.29
Total 287,630,757.68 -- 51,817,017.32 275,348,645.40 -- 51,817,017.32
Other receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
[] Applicable; [V] Not applicable
Other receivable accounts in the portfolio on which bad debt provision are provided on other basis
[] Applicable; [V] Not applicable
Other receivable accounts with minor amount but were provided bad debt provisions individually at end of period
[V] Applicable Not applicable
In RMB
Description of other
Book balance Bad debt provision Providing rate (%) Reason to provide
receivables
Japanese Loan Sinking
Fund of Finance Bureau 1,740,000.00 sinking fund
of Benxi
Total 1,740,000.00 -- --
(2) Other receivable accounts written back or retrieved in the report period
In RMB
Bad debt provision
Description of other Reason to write back Basis of original bad Amount written back or
provided before writing
receivables or retrieve debt provision retrieved
back or retrieving
Bad debt provisions on other receivable accounts with single large amount or minor amount but tested individually at end of report
period
In RMB
Description of the
Book balance Amount of bad debt Providing rate (%) Reason
receivable accounts
Japanese Loan Sinking 1,740,000.00 sinking fund
90
Bengang Steel Plates Co., Ltd. Interim Report 2013
Fund of Finance Bureau
of Benxi
Total 1,740,000.00 -- --
Other receivable accounts in the portfolio which has minor single amount but with greater risk after combined in the portfolio
None
(3) Other receivable accounts actually written off in the report period
In RMB
Name of the Reason of writing Occurred under related
Property of account Date of written off Amount written off
companies off relationship
Remark on writing off of other receivable accounts
None
(4) Particulars about the other receivable accounts due from shareholders with 5% or over of
the Company’s shares in the report period
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
(5) Natures or contents of other receivable accounts with large amount
In RMB
Nature or content of the
Name of the companies Amount Portion in total other receivables (%)
account
Remarks
None
(6) Top 5 debtors of other receivable accounts
In RMB
Relation with the Portion in total other
Name of the companies Amount Ages
Company receivables (%)
Freight for main clients Client 17,911,189.14 within 1 yr 6.23%
Input tax deductible 13,360,435.02 within 1 yr 4.64%
National Tax Bureau
Tax bureau 11,390,506.00 within 1 yr 3.96%
Bengang Office
Benxi Juyuan Slag and Supplier 9,021,270.05 within 1 yr 3.14%
91
Bengang Steel Plates Co., Ltd. Interim Report 2013
Furnance Burden Co.,
Ltd.
Benxi Xinyu metallurgy
Supplier 7,132,020.28 within 1 yr 2.48%
Material Co., Ltd.
Total -- 58,815,420.49 -- 20.45%
(7) Other accounts receivable from related parties
In RMB
Portion in total other receivables
Name of the companies Relation with the Company Amount
(%)
Benxi Steel (Group)
Real-estate Development Co., Same parent 3,132,020.28 1.09%
Ltd.
Bengang (Group) Engineering
Same parent 249,773.95 0.09%
Supervisory Co., Ltd.
Benxi Beiying Steel & Iron
Group Import & Export Co., Both under Bengang Group 1,338,217.09 0.47%
Ltd.
Liaoning College of
Same parent 98,223.40 0.03%
Metallurgy Technologies
Total -- 4,818,234.72 1.68%
(8) Termination of other receivable accounts
In RMB
Items Amount terminated Gain/loss related to termination
(9) For securitization on other receivable accounts, please provide the amount of asset and
liability formed by continuous involving
In RMB
Items End of term
Assets:
Liabilities:
8. Prepayment
(1) Prepayment presented by ages:
In RMB
92
Bengang Steel Plates Co., Ltd. Interim Report 2013
End of term Beginning of term
Age
Amount Ratio (%) Amount Ratio (%)
within 1 yr 427,207,760.97 99.5% 644,342,081.47 99.61%
1-2 years 2,141,297.67 0.5% 2,526,223.43 0.39%
Total 429,349,058.64 -- 646,868,304.90 --
Remarks on ages of prepayment
Decreased by 217,519,246.26 and 33.63%, which was caused by increase of prepayment settling in the report period.
(2) Top 5 receivers of prepayments
In RMB
Relation with the
Name of the companies Amount Date Reason of unsettled
Company
Zhongye Jiaonai
Engineering Technology Supplier 82,086,865.46 within 1 yr Prepaid for goods
Co., Ltd.
Bengang Puxiang Cool
Rolling Steel Sheet Co., Related parties 32,498,512.56 within 1 yr Prepaid for goods
Ltd.
Benxi Steel (Group)
Related parties 25,487,362.74 within 1 yr Prepaid for goods
Construction Co., Ltd.
Shenyang Coke Coal
Supplier 20,903,941.96 within 1 yr Prepaid for goods
Co., Ltd. Sales Co.
Dandong Tielong
Logistics & Trade Co., Supplier 19,046,398.43 within 1 yr Prepaid for goods
Ltd.
Total -- 180,023,081.15 -- --
Remarks on main entities involved in the prepayment
(3) Prepayment received by shareholding parties holding 5% or above of the Company’s
shares in the report period
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
93
Bengang Steel Plates Co., Ltd. Interim Report 2013
(4) Statements on prepayments
9. Inventories
(1) Categories of inventory
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Raw materials 5,976,630,708.29 16,616,984.19 5,960,013,724.10 6,376,812,100.02 16,616,984.19 6,360,195,115.83
Product in process 1,305,415,074.79 33,257,068.38 1,272,158,006.41 1,063,057,316.25 26,099,010.69 1,036,958,305.56
Products in stock 2,925,297,847.06 40,484,673.78 2,884,813,173.28 2,420,348,993.70 23,782,539.16 2,396,566,454.54
10,116,984,903.7
Total 10,207,343,630.14 90,358,726.35 9,860,218,409.97 66,498,534.04 9,793,719,875.93
9
(2) Inventory impairment provision
In RMB
Openning balance of Decreased this period Closing balance of
Categories Provided this term
book value Written back Transferred book value
Raw materials 16,616,984.19 16,616,984.19
Product in process 26,099,010.69 33,257,068.38 26,099,010.69 33,257,068.38
Products in stock 23,782,539.16 40,484,673.78 23,782,539.16 40,484,673.78
Total 66,498,534.04 73,741,742.16 0.00 49,881,549.85 90,358,726.35
(3) Inventory impairment provisions
Percentage of the writen back
Basis of providing impairment
Items Reason of written back amount on the balance of the
provision
inventory
Net realizable value is lower
Raw materials
than cost at the year end
Net realizable value is lower
Products in stock
than cost at the year end
Net realizable value is lower
Product in process
than cost at the year end
Remarks on inventories
No inventory under restriction such as pledge or under guarantee.
94
Bengang Steel Plates Co., Ltd. Interim Report 2013
Balance of inventory increased by RMB323,265,027.86 and 3.3%, which was caused by increase of unsettled
export.
10. Other current assets
In RMB
Items End of term Beginning of term
Prepaid income tax 182,211,823.73 182,211,823.73
Total 182,211,823.73 182,211,823.73
Remarks on other current assets
The losses of year 2009 was not coverred yet, therefore the income tax prepaid was not transferred.
11. Disposable financial asset
(1) Sellable financial assets
In RMB
Items Fair value at end of term Fair value at beginning of term
For investment held to mature relocated into sellable financial, the amount was RMB, and the percentage in original investment held
to mature.
Statement on sellable financial assets
None
(2) Long-term liability investment in the sellable financial assets
In RMB
Accumulated
Openning Interest of the interest Closing
Bond items Type of bond Face value Initial costs Expired on
balance period received or balance
receivable
Remarks on the long-term liability investment in the sellable financial assets
None
12. Investment held to mature
(1) Investment held to mature
In RMB
95
Bengang Steel Plates Co., Ltd. Interim Report 2013
Items Closing balance of book value Openning balance of book value
Remarks on investment held to mature
None
(2) Investment held to mature disposed in the report period before mature
In RMB
Items Amount Percentage in the total investment before disposed %
Remarks on Investment held to mature disposed in the report period before mature
None
13. Long-term receivables
In RMB
Categories End of term Beginning of term
14. Investment in affiliates and joint ventures
In RMB
Voting power
Shares held by Total of Net profit of
Name of the of the Total asset at Total liability Total net asset
the turnover at the current
Companies Company in end of term at end of term at end of term
Company % current term term
the entity %
I. Joint ventures
II. Affiliates
Remarks on the material difference between the accounting policies, accounting estimations of the Company and those of the joint
ventures and affiliates
None
15. Long-term equity investment
(1) Details of long-term equity investment
In RMB
Statement
on Impairme Cash
Percentag Voting
Company difference Impairme nt dividend
Calculatin Investme Openning Changed Closing e of share power in
invested s between nt provision of the
g basis nt cost balance by balance in the the
in the provision provided current
firm % firm %
sharehold this term term
ing and
96
Bengang Steel Plates Co., Ltd. Interim Report 2013
voting
rights
Zhejiang
Bengang
Jingrui Equity 1,843,800 1,967,605 1,967,605
20% 20%
Steel basis .00 .63 .63
Processin
g Ltd.
Tianjin
Bengang
Longxing
3,888,980 3,888,980 3,888,980
Steel Cost basis 20% 20%
.00 .00 .00
Processin
g Co.,
Ltd.
China
Steel
Shanghai
10,058,25 10,058,25 10,058,25
Steel Cost basis 15% 15%
0.00 0.00 0.00
Processin
g Co.,
Ltd.
15,791,03 15,914,83 15,914,83
Total -- -- -- --
0.00 5.63 5.63
(2) Constrains on the ability to transfer capital to invested entities
In RMB
Constrains on the ability to transfer capital Accumulated investment loss not
Causation of constrain
to long-term invested entities recognized
Statement on long-term equity investment
None
16. Investment property
(1) Investment property on cost basis
In RMB
Openning balance of book Closing balance of book
Items Increased this period Decreased this period
value value
In RMB
97
Bengang Steel Plates Co., Ltd. Interim Report 2013
Current term
(2) Investment property on fair value basis
In RMB
Increased this period Decreased this period
For own use
Fair value at Fair value
or Gain/loss
Items beginning of Transferred at end of
Purchased transferred from change Disposed
term for own use term
from of fair value
inventory
Remarks on the investment properties which has been changed of their measurement method and license not granted, please state the
reasons and predicted date of granting
None
17. Fixed assets
(1) Particulars of fixed assets
In RMB
Openning balance of Decreased this Closing balance of book
Items Increased this period
book value period value
I. Total of original book
38,126,660,167.93 6,313,509.41 6,324,963.67 38,126,648,713.67
value
Incl. House & Buildings 9,204,549,256.72 5,278,853.41 9,199,270,403.31
Equipment &
28,154,071,414.26 6,313,509.41 987,172.26 28,159,397,751.41
machinery
Transportation
768,039,496.95 58,938.00 767,980,558.95
facilities
Openning balance of Increased this Provided current Decreased this Balance at end of
--
book value term term period current term
II. Total of accumulative
21,009,334,404.66 955,133,290.75 3,153,048.44 21,961,314,646.97
depreciation
Incl. House & Buildings 3,155,752,356.97 230,951,103.96 2,487,446.72 3,384,216,014.21
Equipment &
17,324,324,762.67 721,723,724.01 608,431.86 18,045,440,054.82
machinery
Transportation
529,257,285.02 2,458,462.78 57,169.86 531,658,577.94
facilities
Openning balance of Balance at end of
-- --
book value current term
98
Bengang Steel Plates Co., Ltd. Interim Report 2013
III. Total of net book value
17,117,325,763.27 -- 16,165,334,066.70
of fixed assets
Incl. House & Buildings 6,048,796,899.75 -- 5,815,054,389.10
Equipment &
10,829,746,651.59 -- 10,113,957,696.59
machinery
Transportation
238,782,211.93 -- 236,321,981.01
facilities
IV. Total of impairment
8,237,689.11 -- 8,237,689.11
provisions
Incl. House & Buildings 8,208,087.85 -- 8,208,087.85
Transportation
29,601.26 -- 29,601.26
facilities
V. Total of fixed asset book
17,109,088,074.16 -- 16,157,096,377.59
value
Incl. House & Buildings 6,040,588,811.90 -- 5,804,358,854.53
Equipment &
10,829,746,651.59 -- 10,108,512,004.53
machinery
Transportation
238,752,610.67 -- 236,235,209.89
facilities
Depreciaion of the period was RMB955,133,290.75; the original value of fixed transferred from construction-in-process was
RMB261,769.23.
(2) Fixed assets temporarily in idle status
In RMB
Accumulated Impairment
Items Original book value Net book value Note
depreciation: provision
Total
(3) Fixed assets leased by finance
In RMB
Items Original book value Accumulated depreciation: Net book value
(4) Fixed assets leased out on fiance
In RMB
Categories Closing book value
Houses & buildings 72,018,624.39
99
Bengang Steel Plates Co., Ltd. Interim Report 2013
Equipment & machinery 154,914.08
Transportation facilities 847,595.72
Total 73,021,134.19
(5) Fixed assets held for sale at end of period
In RMB
Predicted disposal
Items Book value fair value Predicted disposal date
expense
(6) Fixed asset not licensed yet
Items Reason for not granted Expected date of grant
Houses & buildings Not filed yet
Remarks on fixed assets
None
18. Construction-in-process
(1) Particulars of construction-in-process
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Information system project 137,948,259.86 137,948,259.86 115,246,236.97 115,246,236.97
Environmental reconstruction
of converter and the 180t 442,746,324.64 442,746,324.64 411,999,574.17 411,999,574.17
dephosphorization converter
Silicon steel project 34,482,694.43 34,482,694.43
Production line of
electro-galvanized steel plates 684,498,840.48 684,498,840.48 627,357,269.47 627,357,269.47
for automobile
Expanding of waste water
76,238,186.13 76,238,186.13 71,455,235.71 71,455,235.71
treatment yard
Cool rolling high strength
332,946,443.08 332,946,443.08 43,817,842.91 43,817,842.91
steel rebuilding
The new energy control center
158,622,447.79 158,622,447.79 138,909,073.27 138,909,073.27
project
100
Bengang Steel Plates Co., Ltd. Interim Report 2013
Reconstruction project of
coke dry cooling of No.2 81,729,398.78 81,729,398.78 28,714,904.28 28,714,904.28
Coke Workshop
66kV cable project and
108,282.66 108,282.66
Nanfen transformer station
Other small projects 129,846,680.91 129,846,680.91 122,208,499.90 122,208,499.90
Environmental reengineering 20,025,980.09 20,025,980.09 11,096,918.46 11,096,918.46
Dalian Benruitong project 5,387,538.62 5,387,538.62 4,995,542.04 4,995,542.04
Dandong stainless steel 1,885,108,962. 1,885,108,962. 1,735,452,746.
1,735,452,746.46
project 45 45 46
3,989,690,039. 3,989,690,039. 3,311,253,843.
Total 3,311,253,843.64
92 92 64
(2) Material change in construction-in-progress
In RMB
Includin
Accumul Capitaliz
Transferr Investme g:
Increase Other ate of ation rate
Beginnin ed into nt on interest Fund End of
Projects Budget d this decrease Progress interest of
g of term fixed budget capitaliz recourse term
period s capitaliz current
assets (%) ed this
ed period %
term
Informat
ion 414,130, 115,246, 22,702,0 137,948,
0.00 0.00
system 000.00 236.97 22.89 259.86
project
Environ
mental
reconstru
ction of
converte
r and the 1,591,05 411,999, 30,746,7 442,746,
0.00 0.00
180t 0,000.00 574.16 50.48 324.64
dephosp
horizatio
n
converte
r
Producti
755,920, 627,357, 57,141,5 684,498,
on line 0.00 0.00
000.00 269.47 71.01 840.48
of
101
Bengang Steel Plates Co., Ltd. Interim Report 2013
electro-g
alvanize
d steel
plates for
automob
ile
Expandi
ng of
waste 103,060, 71,455,2 4,782,95 76,238,1
0.00 0.00
water 000.00 35.71 0.42 86.13
treatmen
t yard
Cool
rolling
high
5,791,00 43,817,8 289,128, 332,946,
strength 0.00 0.00
0,000.00 42.91 600.17 443.08
steel
rebuildin
g
The new
energy
263,000, 138,909, 19,975,1 261,769. 158,622,
control 0.00
000.00 073.27 43.75 23 447.79
center
project
Reconstr
uction
project
of coke
dry 459,770, 28,714,9 53,014,4 81,729,3
0.00 0.00
cooling 000.00 04.28 94.50 98.78
of No.2
Coke
Worksho
p
Dandong
stainless 2,305,41 1,735,45 149,656, 1,885,10
0.00 0.00
steel 0,000.00 2,746.46 215.99 8,962.45
project
66kV
cable 48,860,0 108,282. 108,282.
0.00 0.00 0.00
project 00.00 66 66
and
102
Bengang Steel Plates Co., Ltd. Interim Report 2013
Nanfen
transfor
mer
station
11,732,2
3,172,95 627,256, 261,769. 3,799,94
Total 00,000.0 -- -- -- --
2,883.23 031.87 23 7,145.87
0
Remarks on changes of the construction-in-process
None
(3) Impairment provisions of construction-in-process
In RMB
Decreased this
Items Beginning of term Increased this period End of term Reason to provide
period
(4) Progress of material construction-in-process
Items Progress Note
(5) Statement on construction-in-process
None
19. Project material
In RMB
Increased this Decreased this
Items Beginning of term End of term
period period
Special equipment 5,598,691.84 160,874,749.94 142,654,616.26 23,818,825.52
Total 5,598,691.84 160,874,749.94 142,654,616.26 23,818,825.52
Remarks on project material
Project material increased by RMB18,220,133.68 and 325.44%, which was caused by not delivered project
materials.
20. Liquidation of fixed assets
In RMB
Items Openning book value Closing book value Reason of liquidation
Progress of fixed assets turn to be liquidated for over one year:
103
Bengang Steel Plates Co., Ltd. Interim Report 2013
None
21. Production biological assets
(1) On costs
In RMB
Openning balance of Closing balance of book
Items Increased this period Decreased this period
book value value
I. Farming
II. Aquaculture
III. Forestry
IV. Aquatic
(2) On fair value
In RMB
Items Openning book value Increased this period Decreased this period Closing book value
I. Farming
II. Aquaculture
III. Forestry
IV. Aquatic
Remarks on productive biological assets
None
22. Petrolum assets
In RMB
Openning balance of Closing balance of book
Items Increased this period Decreased this period
book value value
Remarks on petrolum assets
None
23. Intangible assets
(1) Profiles of intangible assets
In RMB
Openning balance of Closing balance of book
Items Increased this period Decreased this period
book value value
104
Bengang Steel Plates Co., Ltd. Interim Report 2013
I. Total of original book
113,989,910.00 113,989,910.00
value
(1) Land using rights 113,989,910.00 113,989,910.00
II. Total of accumulative
4,817,675.33 1,204,418.86 6,022,094.19
amortizing
(1) Land using rights 4,817,675.33 1,204,418.86 6,022,094.19
III. Total of book net value of
109,172,234.67 -1,204,418.86 107,967,815.81
intangible assets
(1) Land using rights 109,172,234.67 -1,204,418.86 107,967,815.81
(1) Land using rights
Total of book value of
109,172,234.67 -1,204,418.86 107,967,815.81
intangible assets
(1) Land using rights 109,172,234.67 -1,204,418.86 107,967,815.81
RMB1,204,418.86 amortized this period.
(2) R&D expenses
In RMB
Decreased this period
Accounted into
Items Beginning of term Increased this period Recognized as End of term
current income
intangible asset
account
Percentage in total amount of R&D
Intangible asset formed by internal R&D of the period accounted for 18.25% of the total book value of intangible assets.
Remarks on R&D projects, including those with single value over RMB1 million and booked at their evaluation value, please
provide the name of the evaluation agency and the method of evaluation
None
24. Goodwill
In RMB
Impairment
Name of the companies or Increased this Decreased this
Openning balance Closing balance provision at
goodwill item period period
end of term
Remarks on the impariment test method and providing of impairment provisions
None
25. Long-term expenses to be amortized
In RMB
105
Bengang Steel Plates Co., Ltd. Interim Report 2013
Beginning of Increased this Amortized this Reason of other
Items Other decrease End of term
term term term decreasing
Remarks on long-term expenses to be amortized
None
26. Deferred income tax asset and deferred income tax liabilities
(1) Deferred income tax assets and liabilities are not presented as net amount after
neutralization
Deferred income tax assets and liabilities already recognized
In RMB
Items End of term Beginning of term
Deferred income tax assets:
Provisional difference recognized according to the
87,139,186.13 79,786,017.81
book value and tax base
Internal profit unrealized 946,647.35 1,141,527.69
Sub-total 88,085,833.48 80,927,545.50
Deferred income tax liabilities:
Details of un-recognized deferred income tax assets
In RMB
Items End of term Beginning of term
Neutralizable losses 1,034,406,343.44 1,034,406,343.44
Total 1,034,406,343.44 1,034,406,343.44
Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year End of term Beginning of term Note
2013 4,280,415.10 4,280,415.10
2014 851,501,442.85 851,501,442.85
2015
2016 2,811,063.46 2,811,063.46
2017 175,813,422.03 175,813,422.03
Total 1,034,406,343.44 1,034,406,343.44 --
Details of taxable differences and deductible differences
In RMB
Amount of temporary differences
Items
At end of term At beginning of term
106
Bengang Steel Plates Co., Ltd. Interim Report 2013
Differences in taxable items
Neutralizable different items
(2) Deferred income tax assets and liabilities are presented as net amount after
neutralization
Composition items of income tax asset and liabilities after neutralization
In RMB
Deductible or taxable Deductible or taxable
Deferred income tax Deferred income tax
provisional provisional
asset or liability after asset or liability after
Items difference after difference after
neutralizing at end of neutralizing at end of
neutralizing at end of neutralizing at end of
reprot period report period
report period report period
Deferred income tax asset 88,085,833.48 80,927,545.50
Details of deferred income tax asset and liabilities neutralized
In RMB
Items Amount neutralized this period
Remarks on deferred income tax assets and deferred income tax liabilities
None
27. Detail of asset impairment provision
In RMB
Openning balance Increased this Decreased this period Closing balance of
Items
of book value period Written back Transferred book value
I. Bad debt provision 185,155,169.34 185,155,169.34
II. Inventory impairment
66,498,534.04 73,741,742.16 0.00 49,881,549.85 90,358,726.35
provision
VII. Fixed asset impairment
8,237,689.11 8,237,689.11
provision
Total 259,891,392.49 73,741,742.16 0.00 49,881,549.85 283,751,584.80
Remarks on detailed asset impairment
28. Other non-current assets
In RMB
Items End of term Beginning of term
Statement on other non-recurring assets
None
107
Bengang Steel Plates Co., Ltd. Interim Report 2013
29. Short-term loans
(1) Categories of short-term loans
In RMB
Items End of term Beginning of term
Guarantee loan 4,456,607,669.44 3,225,950,164.53
Credit loan 5,566,689,400.00 6,159,372,000.00
Total 10,023,297,069.44 9,385,322,164.53
Remarks on categories of short-term loans
None
(2) Short-term loans expired but not repaid
In RMB
Loan provided by Amount of loan Interest rate Usage of loan Reason of overdue Scheduled repaying date
Amount repaid after the balance sheet day was RMB0.00.
Remarks on short-term loans, provide terms and new mature date if already became mature and extended.
None
30. Transactional financial liabilities
In RMB
Items Fair value at end of term Fair value at beginning of term
Remarks on transactional financial liabilities
None
31. Notes payable
In RMB
Categories End of term Beginning of term
Bank acceptance 590,793,011.87 349,101,821.61
Total 590,793,011.87 349,101,821.61
Amount due in next fiscal period is RMB590,793,011.87
Remarks on notes payable
Notes payable has increased by RMB241,691,190.26 and 69.23%, which was caused by increase of
settlement by notes payable.
108
Bengang Steel Plates Co., Ltd. Interim Report 2013
32. Account payable
(1) Account payable
In RMB
Items End of term Beginning of term
within 1 yr 4,668,466,422.10 4,856,690,626.04
1-2 yrs 190,473,363.00 124,575,499.75
2-3 yrs 70,461,453.67 86,251,088.91
Over 3 yrs 230,721,701.69 308,727,644.27
Total 5,160,122,940.46 5,376,244,858.97
(2) Account payable to shareholders holding 5% or over of the Company’s shares in the
report period
In RMB
Name of the companies End of term Beginning of term
(3) Remarks on large amount payable accounts aged for over one year
33. Accounts received in advance
(1) Advance payment received
In RMB
Items End of term Beginning of term
within 1 yr 2,810,795,294.60 2,865,809,243.08
1-2 yrs 22,633,044.39 25,196,201.84
2-3 yrs 14,613,566.76 8,734,601.50
Over 3 yrs 11,817,530.75 16,669,696.07
Total 2,859,859,436.50 2,916,409,742.49
109
Bengang Steel Plates Co., Ltd. Interim Report 2013
(2) Prepayment collected from shareholders holding 5% or over of the Company’s shares in
the report period.
In RMB
Name of the companies End of term Beginning of term
(3) Remarks on large amount advance payment received aged for over one year
34. Wage payable
In RMB
Openning balance of Closing balance of book
Items Increased this period Decreased this period
book value value
I. Wage, bonus,
37,911,771.09 711,677,716.95 701,469,548.39 48,119,939.65
allowances
II. Employees
7,981,453.59 7,981,453.59 0.00
welfare
III. Social security 283,120.94 211,941,988.93 212,225,109.87 0.00
Incl. Medical
47,287,882.50 47,287,882.50 0.00
insurance
Basic pension -381,040.00 135,406,184.67 135,025,144.67 0.00
Annual fee 0.00
Unemployment
13,083,118.43 13,083,118.43 0.00
insurance
Labor injury
664,160.94 16,125,339.22 16,789,500.16 0.00
insurance
Breeding insurance 39,464.11 39,464.11 0.00
IV. Housing fund 6,856,753.00 65,730,514.00 65,736,874.00 6,850,393.00
V. Dismissing
21,949,124.49 6,425,949.13 15,523,175.36
welfare
VI. Others 2,132,964.37 20,266,554.90 21,770,748.30 628,770.97
Total 69,133,733.89 1,017,598,228.37 1,015,609,683.28 71,122,278.98
Overdue payment payable to employees are amounted to RMB0.00
Trade Union fund and eduction fund was RMB19,917,576.90, non-monetary welfare was RMB0, and compensation for dismissing of
employment was RMB6,425,949.13.
110
Bengang Steel Plates Co., Ltd. Interim Report 2013
Arrangement for the payment to employees
None
35. Tax payable
In RMB
Items End of term Beginning of term
VAT -249,339,867.56 -15,664,653.27
Operational tax 24,570.05 2,064,896.34
Enterprise income tax 8,384,636.20 6,023,808.98
City maintenance and construction tax 234,931.77 17,264,568.50
Property tax 1,061,690.35 6,172,095.10
Education surtax 169,978.76 12,280,211.03
Others 246,564.52 322,856.54
Total -239,217,495.91 28,463,783.22
Remarks on tax payable. In case it was approved by the tax authority to neutralize the taxable income among the subsidiaries or
branch factories, please provide the calculation formula.
Significant decrease was caused by increase of input tax deductible.
36. Interest payable
In RMB
Items End of term Beginning of term
Short-term borrowing interests payable 2,306,947.03 9,030,341.06
Total 2,306,947.03 9,030,341.06
Remarks on interest payable
Interest payable this period was the loan interests paid one-off at due.
37. Dividend payable
In RMB
Name of the companies End of term Beginning of term Reason of overdue for one year
Short-term borrowing interests
62,720,000.00
payable
Total 62,720,000.00 --
Remark on dividend payable
It was approved at the Shareholders’ Meeting 2012 held on May 17 2013, that basing on the total capital
shares of 3,136,000,000 shares at end of 2012, RMB0.2 (tax included) of cash dividend were to be
distributed to each 10 shares and all shareholders. Totally RMB62,720,000.00 were to be distributed on
111
Bengang Steel Plates Co., Ltd. Interim Report 2013
July 4.
38. Other account payable.
(1) Other accounts payable
In RMB
Items End of term Beginning of term
within 1 yr 587,156,080.38 568,936,934.90
1-2 yrs 69,038,493.72 73,399,770.70
2-3 yrs 10,933,941.54 13,392,698.52
Over 3 yrs 46,738,465.34 41,064,138.36
Total 713,866,980.98 696,793,542.48
(2) Other account payable due to shareholders with 5% or over of the Company’s shares in
the report period
In RMB
Name of the companies End of term Beginning of term
(3) Statement on large amount other payable accounts due for over one year
None
(4) Statement on large amount other payable accounts
Name of company Closing balance Properties Remark
Benxi Steel & Iron Group Co., Ltd. 71,062,583.30 Capital transferring Not paid yet
Zhongye Saidi Engineering Co., Ltd. 54,801,536.24 Engineering Not paid yet
Benxi Steel & Iron Group Construction Co. 13,010,558.85 Engineering Not paid yet
Liaoning Hengtai Heavy Machinery Co., Ltd. 12,684,983.09 Engineering Not paid yet
Bengang Truck Transportation Co., Ltd. 11,756,772.92 Transport fee Not paid yet
39. Anticipated liabilities
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Remarks on anticipated liabilities
None
112
Bengang Steel Plates Co., Ltd. Interim Report 2013
40. Non-current liabilities due in one year
(1) Non-current liabilities due in one year
In RMB
Items End of term Beginning of term
Long-term loans due in 1 year 1,268,690,000.00 1,689,992,983.62
Total 1,268,690,000.00 1,689,992,983.62
(2) Long-term loans due in 1 year
Long-term loans due in 1 year
In RMB
Items End of term Beginning of term
Guarantee loan 360,000,000.00 981,692,983.62
Credit loan 908,690,000.00 708,300,000.00
Total 1,268,690,000.00 1,689,992,983.62
Amount in the long-term loans due in 1 year which was overdue but extended was RMB0.00
Top 5 long-term loans due in 1 year
In RMB
End of term Beginning of term
Commence Terminate Interest Amount of Amount of
Loan provided by Currency Amount of Amount of
date date rate % foreign foreign
original currency original currency
currency currency
National
Development
2011/04/26/ 2014/03/19/ USD 3.51% 30,000,000.00 185,361,000.00
Bank Liaoning
Branch
National
Development
2012/02/23/ 2014/03/09/ USD 3.51% 29,000,000.00 179,182,300.00
Bank Liaoning
Branch
CCB Bengang
2010/07/02/ 2013/07/01/ RMB 5.02% 160,000,000.00
Branch
CCB Bengang
2007/05/06/ 2014/04/29/ RMB 5.76% 130,000,000.00
Branch
National
Development 2011/05/26/ 2014/03/19/ USD 3.51% 21,000,000.00 129,752,700.00
Bank Liaoning
113
Bengang Steel Plates Co., Ltd. Interim Report 2013
Branch
CICB Bengang RMB
2011/03/11/ 2013/03/08/ 6.1% 417,480,000.00
Branch
CCB Bengang RMB
2010/07/02/ 2013/07/01/ 5.02% 310,000,000.00
Branch
CCB Bengang RMB
2010/07/02/ 2013/06/01/ 5.02% 300,000,000.00
Branch
CCB Bengang RMB
2008/04/29/ 2013/04/15/ 5.76% 200,000,000.00
Branch
CCB Bengang RMB
2010/07/01/ 2013/06/30/ 5.02% 100,000,000.00
Branch
RMB
Total -- -- -- -- -- 784,296,000.00 -- 1,327,480,000.00
Overdue account in long-term loans due in one year
In RMB
Annual interest Reason for Scheduled
Loan provided by Total Amount Date of mature Usage of loan
rate % overdue repaying date
RMB0.0 repaid after the balance sheet day.
Remarks on long-term loans due in 1 year
None
(3) Bonds payable due in 1 year
In RMB
Interest Interest
Interest
Date of Issuing payable at Interest paid payable at Closing
Bond Face value Bond term occurred
issue amount beginning this period end of balance
this period
of period period
Remarks on payable bonds due in 1 year
None
(4) Long-term payable account due in 1 year
In RMB
Loans from Term Initial amount Interest rate % Interest payable Closing balance Condition
Remarks on long-term payable account due in 1 year
None
114
Bengang Steel Plates Co., Ltd. Interim Report 2013
41. Other current liability
In RMB
Items Closing balance of book value Openning balance of book value
Remarks on other current liabilities
None
42. Long-term loans
(1) Categories of long-term loans
In RMB
Items End of term Beginning of term
Guarantee loan 90,000,000.00 313,502,074.74
Credit loan 1,183,911,837.68 1,937,360,000.00
Total 1,273,911,837.68 2,250,862,074.74
Remarks on categories of long-term loans
(2) Top 5 long-term loans
In RMB
End of term Beginning of term
Commence Terminate Interest Amount of Amount of
Loan provided by Currency Amount of Amount of
date date rate % foreign foreign
original currency original currency
currency currency
Communication
RMB
Bank Dandong 2011/12/08/ 2014/12/25/ 600,000,000.00
Yuan
Branch
CICB Bengang RMB
2011/05/24/ 2014/09/24/ 6.9% 127,000,000.00
Branch Yuan
CICB Bengang RMB
2012/01/13/ 2016/05/22/ 6.9% 126,000,000.00
Branch Yuan
Benxi Commercial
RMB
Bank Nandi 2012/12/21/ 2015/11/20/ 5.54% 90,000,000.00
Yuan
Branch
CICB Bengang RMB
2011/05/24/ 2015/09/24/ 6.9% 73,000,000.00
Branch Yuan
Communication
RMB
Bank Dandong 2011/12/08/ 2014/12/25/ 600,000,000.00
Yuan
Branch
115
Bengang Steel Plates Co., Ltd. Interim Report 2013
National
Development Bank 2012/02/23/ 2014/04/06/ USD 3.71% 29,000,000.00 182,279,500.00
Liaoning Branch
National
Development Bank 2011/04/26/ 2014/04/06/ USD 3.71% 25,000,000.00 157,137,500.00
Liaoning Branch
National
Development Bank 2011/05/26/ 2014/04/06/ USD 3.71% 21,000,000.00 131,995,500.00
Liaoning Branch
CCB Bengang RMB
2007/04/30/ 2014/04/29/ 5.94% 130,000,000.00
Branch Yuan
RMB
Yuan
Total -- -- -- -- -- 1,016,000,000.00 -- 1,201,412,500.00
Remarks on long-term loans. For long-term loans formed by extending of overdue loans, the conditions, amount of principal, interest,
and expected date of return
None
43. Bond payable
In RMB
Interest Interest
Interest
Date of Issuing payable at Interest paid payable at Closing
Bond Face value Bond term occurred
issue amount beginning this period end of balance
this period
of period period
Remarks on bond payable, including conditions and date to convert to shares for convertible bonds.
None
44. Long term payables
(1) Top 5 long-term payables
In RMB
Parties Term Initial amount Interest rate % Interest payable Closing balance Condition
(2) Details of finance leasing payments in long-term payables
In RMB
End of term Beginning of term
Parties
Foreign Currency RMB Foreign Currency RMB
Amount of financed leasing guaranteed by a third party RMB.
116
Bengang Steel Plates Co., Ltd. Interim Report 2013
Remarks on long-term payables
None
45. Special payables
In RMB
Beginning of Increased this Decreased this
Items End of term Remarks
term period period
Remarks on special payables
None
46. Other non-current liabilities
In RMB
Closing balance of book Openning balance of book
Items
value value
3 government technology financing funds 864,224.00 864,224.00
Fund for introducing of overseas R&D team 4,500,000.00 3,500,000.00
Subsidiary for industrial energy control center demonstration project 11,600,000.00 11,600,000.00
Automobile zinc plate production line 41,040,000.00 41,040,000.00
desulfuration project of 2*265 square meter burnning line 4,000,000.00 4,000,000.00
Water treatment project of 2*265 square meter burnning line 2,400,000.00 2,400,000.00
Desulfuration project of 220t/h furnace 3,200,000.00 3,200,000.00
MES project fund 8,600,000.00 8,600,000.00
Environment treatment project of Benxi City 2,160,000.00 2,160,000.00
Heat recycling and disulfuration project of the burnning line 17,860,000.00 17,860,000.00
Reconstruction of dust remover of the 360m3 burnning line 240,000.00 240,000.00
Cool rolling high strength steel rebuilding 50,000,000.00 50,000,000.00
The 2nd batch of science and tech projects of Liaoning province 1,000,000.00 1,000,000.00
Water treatment factory reconstruction project 7,500,000.00 7,500,000.00
Government land using rights in Dandong 63,892,106.31 64,632,570.31
Infrastructure fund from Dandong Boarder Cooperation Zone Finance
4,140,000.00 4,140,000.00
Bureau
Discount of balance paid directly by Dandong Finance Bureau 16,720,000.00 16,720,000.00
Desulfuration project of the 360m2 burnning machine 6,000,000.00
Upgrading project of the dust remover of three burnning lines 2,100,000.00
Water treatment projects of No. 1 and 2 Coke Factory 1,200,000.00
117
Bengang Steel Plates Co., Ltd. Interim Report 2013
Upgrading project of the dust remover of the iron making factory 3,300,000.00
Cool rolling high strength steel rebuilding 32,500,000.00
TRT Resource reconstruction of No.5 blast furnace 1,470,000.00
Gas recycling project of powerplant furnace 14,770,000.00
Total 301,056,330.31 239,456,794.31
Remarks on other non-current liabilities, including the amounts of asset-related and income-related government subsidies obtained in
the report term.
1. According to the document (辽外专函【2012】47号) issued by Liaoning Bureau of Foreign Expert, the
Company received in the period RMB1 million for “Automobile zinc plate production technologies” and “cool rolling
high-strength automobile steel” project.
2. According to the foreign investment attraction policies of Dandong City Government, Dandong Stainless – subsidiary of the
Company, had received a land using rights for free from the government. Land certificate had been granted and it was recorded to
intangible assets and deferred gains. RMB740,464.00 recognized this period.
3. According to document (本环发【2012】78号) and (本环发【2012】81号) issued by the Bureau of Environmental
Protection of Benxi City, the Company received RMB6 million grants for Desulfuration project of the 360m2 burnning
machine.
4. According to document (本环发【2012】78), the Company received RMB2.1 million for Upgrading project of the
dust remover of three burnning lines.
5. According to document (本环发【2012】78), the Company received RMB1.2 million for Water treatment projects of
No. 1 and 2 Coke Factory.
6. According to document (本环发【2012】78), the Company received RMB3.3 million for Upgrading project of the
dust remover of the iron making factory.
7. According to document (发改办产业【2012】1642号) issued by national Committee of Development and
Reformation, the Company received RMB32.5 million for Cool rolling high strength steel rebuilding project.
8. According to document (辽财指企【2009】973), the company received RMB1.47 million of grant for TRT
Resource reconstruction of No.5 blast furnace.
9. According to document (发改环资[2009]2483号) issued by national Committee of Development and
Reformation, the Company received RMB14.77 million for Gas recycling project of powerplant furnace.
47. Capital Share
In RMB Yuan
Changed in the report period (+,-)
Beginning of
Issuing of new Transferred End of term
term Bonus shares Others Sub-total
shares from reserves
Total of capital 3,136,000,000. 3,136,000,000.
shares 00 00
Remarks on change of share capital. If there is change in capital in the report period, name of CPA and No. of Verification Report
shall be provided; for shareholding companies operated for less than three years, only net asset need to be provided for years before
establishing; for shareholding companies transformed from private limited companies, particulars about capital verification shall be
provided.
118
Bengang Steel Plates Co., Ltd. Interim Report 2013
None
48. Shares in stock
Statement on shares in stock
None
49. Special reserves
Statement on special reserves
Items Open balance Increased Decreased Close balance
Labor safety expense 311,224.81 17,609,107.46 9,719,425.07 8,200,907.20
Total 311,224.81 17,609,107.46 9,719,425.07 8,200,907.20
Statement on special reserves: According to the Notice on Providing of Labor Safety Expenses (财企
【2012】16号), the Company provides the expenses which increased by RMB7,889,682.39, and
2,535.04%. It was caused by decrease of expense occurred.
50. Capital reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Capital premium (share capital
8,706,903,665.94 8,706,903,665.94
premium)
Other capital reserves 115,917,468.82 115,917,468.82
Total 8,822,821,134.76 8,822,821,134.76
Remarks on capital reserves
None
51. Surplus reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Statutory surplus reserves 934,045,040.35 934,045,040.35
Total 934,045,040.35 934,045,040.35
Remarks on surplus reserves. Related resolutions shall be provided if surplus reserves were used in capitalizing, making up losses, or
dividend.
None
119
Bengang Steel Plates Co., Ltd. Interim Report 2013
52. Providing of common risk provisions
Statement on common risk provisions
None
53. Retained profit
In RMB
Percentage of drawing or
Items Amount
allocation
Retained profit adjusted at beginning of year 2,387,628,114.61 --
Plus: Net profit attributable to owners of the
167,484,002.73 --
parent company
Common share dividend payable 62,720,000.00
Retained profit at the end of term 2,492,392,117.34 --
Details about adjustment of retained profit at beginning of year:
1) For the retrospective adjustment according to the Enterprise Accounting Standard and regulations, the retained profit was changed
by RMB0.00.
2) For change of accounting policies, the retained profit was changed by RMB0.00.
3) For correcting of major accounting errors, the retained profit was changed by RMB0.00.
4) For change of consolidation range caused by merger of entities under common control, the retained profit was changed by
RMB0.00.
5) For other adjustments, the retained profit was changed by RMB0.00.
Remarks on retained profit. For companies first issue shares to the public, if the accumulated profit has been decided by the
shareholders meeting to be shared by the old and new shareholders, shall be stated particularly; if the accumulated profit has been
decided by the shareholders meeting to be allocated to the old shareholders before issuing of shares, the actual audited amount of
profit attributable to the old shareholders shall be stated particularly.
None
54. Operational turnover and cost
(1) Operation incomes and costs
In RMB
Items Occurred current term Occurred in previous term
Major business turnover 20,878,770,805.77 21,037,373,504.31
Other business income 1,635,129,574.99 1,804,196,329.75
Operation cost 21,153,962,726.36 21,194,363,935.21
120
Bengang Steel Plates Co., Ltd. Interim Report 2013
(2) Business segments (on industries)
In RMB
Occurred current term Occurred in previous term
Name of industry
Turnover Operation cost Turnover Operation cost
(1) Industry 20,878,770,805.77 19,708,887,070.57 21,037,373,504.31 19,490,909,189.74
Total 20,878,770,805.77 19,708,887,070.57 21,037,373,504.31 19,490,909,189.74
(3) Business segments (on products)
In RMB
Occurred current term Occurred in previous term
Products or services
Turnover Operation cost Turnover Operation cost
Steel plate 20,512,586,877.07 19,395,010,033.29 20,697,608,630.24 19,205,210,953.82
Steel billet 112,972.56 101,067.24 0.00 0.00
Others 366,070,956.14 313,775,970.04 339,764,874.07 285,698,235.92
Total 20,878,770,805.77 19,708,887,070.57 21,037,373,504.31 19,490,909,189.74
(4) Business segments (on regions)
In RMB
Occurred current term Occurred in previous term
Name of districts
Turnover Operation cost Turnover Operation cost
Northeast 6,825,730,736.83 6,443,269,937.57 6,767,176,587.51 6,269,719,188.62
North 2,445,205,513.01 2,308,195,236.61 2,597,018,437.47 2,406,110,749.44
East 6,166,648,971.76 5,821,117,982.42 6,272,275,635.20 5,811,198,569.71
Northwest 36,962,769.98 34,891,664.18 90,987,276.21 84,298,771.32
Mid-south 2,266,128,494.18 2,139,152,299.47 2,168,503,155.29 2,009,095,768.00
Export 3,138,094,320.01 2,962,259,950.32 3,141,412,412.63 2,910,486,142.65
Total 20,878,770,805.77 19,708,887,070.57 21,037,373,504.31 19,490,909,189.74
(5) Revenue from top five customers
In RMB
Name of clients Major business turnover Percentage in total turnover of the Company %
Bengang Puxiang Cool Rolling
3,860,957,084.29 17.15%
Steel Sheet Co., Ltd.
Bengang Group Mineral Co., Ltd. 536,092,359.04 2.38%
121
Bengang Steel Plates Co., Ltd. Interim Report 2013
Hengxing International Resource
361,388,239.53 1.61%
Co., Ltd.
Benxi Beiying Steel & Iron
348,751,491.47 1.55%
(Group) Co., Ltd.
Liaoning Bengang Steel & Iron
283,481,988.54 1.26%
Trading Co., Ltd.
Total 5,390,671,162.87 23.95%
Statement on revenue.
55. Income from contract projects
In RMB
Construction Accumulative gross
Accumulated costs
contract with fixed Project Amount profit recognized Settled amount
occurred
price (“-“ for loss)
Accumulative gross
Contract on cost plus Accumulated costs
Project Amount profit recognized Settled amount
commission occurred
(“-“ for loss)
Remarkes on contract projects
None
56. Business tax and surcharge
In RMB
Occurred in previous
Items Occurred current term Rate
term
Operational tax 1,216,190.28 787,351.77 5%
City maintenance and construction
38,556,731.59 39,320,646.67 7%
tax
Education surtax 16,728,505.18 16,924,098.85 3%
Local education charge 11,303,488.94 11,303,375.95 1%
Total 67,804,915.99 68,335,473.24 --
Remarks on turnover tax and surcharges
None
57. Sales expenses
In RMB
Items Occurred current term Occurred in previous term
122
Bengang Steel Plates Co., Ltd. Interim Report 2013
Outsourced transportation 187,720,590.63 167,551,074.38
Port fee 46,670,531.73 31,757,989.75
Import & export agency fee 30,000,000.00 30,000,000.00
Packaging 29,149,030.33 26,681,800.21
Wages 9,706,341.81 8,573,570.94
Internal transportation 4,847,298.51 4,087,337.98
Others 5,548,134.60 5,903,273.71
Total 313,641,927.61 274,555,046.97
58. Administrative expenses
In RMB
Items Occurred current term Occurred in previous term
Maintaining 125,660,142.39 164,682,537.46
Employees wages 125,296,462.75 325,102,788.85
Rental 181,267,899.25 172,763,119.99
Taxes 36,311,839.13 36,632,031.36
Land using rights 28,713,000.00 28,713,000.00
Heating 3,199,402.60 2,643,868.58
Transportation 629,532.00 287,201.80
Sewage expense 15,770,772.00 13,113,240.00
Depreciation 28,559,522.85 28,313,313.57
Water resource fee 4,000,000.00 8,060,000.00
Business reception expenses 3,412,550.78 3,186,780.50
Technical development fee 1,632,236.03 1,324,585.67
Others 31,080,111.70 69,105,873.40
Total 585,533,471.48 853,928,341.18
59. Financial expenses
In RMB
Items Occurred current term Occurred in previous term
Interest expense 291,490,927.82 268,626,264.61
Less: Incoming interests -9,403,694.97 -15,212,652.22
Exchange gains/losses -94,418,456.60 14,579,224.40
Others 1,681,570.28 4,076,116.13
123
Bengang Steel Plates Co., Ltd. Interim Report 2013
Total 189,350,346.53 272,068,952.92
60. Income from fair value fluctuation
In RMB
Source of income from fluctuation of fair value Occurred current term Occurred in previous term
Remarks on income from fair value fluctuation
None
61. Investment income
(1) Details of investment gains
In RMB
Items Occurred current term Occurred in previous term
(2) Long-term equity investment gains on cost basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
(3) Long-term equity investment gains on equity basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
Remarks on investment gains. Statement shall be provided whether or not there is material limitation on retrieving of investment
gains.
None
62. Asset impairment loss
In RMB
Items Occurred current term Occurred in previous term
II. Inventory impairment loss 23,860,192.31
Total 23,860,192.31
124
Bengang Steel Plates Co., Ltd. Interim Report 2013
63. Non-operational income
(1) Non-operational income
In RMB
Carried to current contingent
Items Occurred current term Occurred in previous term
gain/loss
Total of gains from disposal of non-current
1,545.53 276,424.33 1,545.53
assets
Incl. Gains from disposal of fixed assets 1,545.53 276,424.33 1,545.53
Gains from debt reorganization 10,876,068.52 8,117,214.61 10,876,068.52
Government subsidy 3,296,041.75 623,565.58 3,296,041.75
Others 5,649,112.40 1,442,019.97 5,649,112.40
Total 19,822,768.20 10,459,224.49 19,822,768.20
(2) Details of government subsidies
In RMB
Items Occurred current term Occurred in previous term Remarks
Tax refund 296,041.75 623,565.58
Enterprise allowances 3,000,000.00
Total 3,296,041.75 623,565.58 --
Statement on non-operational income
Increase of non-operational income was mainly caused by debt reorganizing and increase of penalties from
customers.
64. Non-operational expenditures
In RMB
Occurred in previous Carried to current
Items Occurred current term
term contingent gain/loss
Total of loss from disposal of non-current assets 3,170,147.09 135,564.71
Incl. Loss from disposal of fixed assets 3,170,147.09 135,564.71 3,170,147.09
Others 8,611.95
Total 3,170,147.09 144,176.66
Remarks on non-operational expenses
Non-operational expenditures increased by RMB3,025,970.43 and 2,098.79%, which was caused by increase of
losses from disposal of fixed assets.
125
Bengang Steel Plates Co., Ltd. Interim Report 2013
65. Income tax expenses
In RMB
Items Occurred current term Occurred in previous term
Income tax calculated according to the law and regulations of
37,422,351.97 43,737,850.91
current term
Adjustment of deferred income tax -7,158,287.98
Total 30,264,063.99 43,737,850.91
66. Calculation of basic earning per share and diluted earning per share
1. Basic earnings per share
Basic earnings per share=P0÷S
S= S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk
P0 = Net profit attributable to the common shareholders or net profit attributable to the common shareholder after
deducting of non-recurring gain/loss. S = weighted average of common shares issued in the market S0 =
Total shares at the beginning of term S1 = increased shares due to capitalizing of common reserves or dividend
Si = shares increased due to placing of new shares or transferred from debt in the report term Sj = shares
decreased due to actions such as repurchasing in the report term SK = the amount of shares reduced M0 =
number of months of the report term Mi = accumulative number of months from the next month of share
increasing to the end of report term; Mj = accumulative number of months from the next month of share
decreasing to the end of report term.
2. Diluted earnings per share
Diluted earning per share=P1/（S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk+ weighted average of common shares
increased by means of subscription certificates, share future options, or convertible bonds）
P1 = net profit attributable to common shareholders of the Company, or net profit attributable to common
shareholders after deducting of non-recurring gain/loss, with considering the influences of diluting potential
common shares, and adjusted according to Enterprise Accounting Standard and related regulations. At calculating
of diluted earnings per share, the Company has considered the influences of the entire dilute potential common
shares, until the diluted earnings per share had reached the minimum value.
67. Other miscellaneous income
In RMB
Items Occurred current term Occurred in previous term
Remarks on other misc income
None
126
Bengang Steel Plates Co., Ltd. Interim Report 2013
68. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
Items Amount
1. Retrieving of current accounts, advance money for another 14,854,578.35
2. Interest income 9,403,694.97
3. Special subsidy and allowance 62,340,000.00
Total 86,598,273.32
Statement on other cash inflow related to operation
None
(2) Other cash paid related to operation
In RMB
Items Amount
1. Freight 241,903,414.87
2. Ports fee 46,670,531.73
3. Land using rights 28,713,000.00
4. Labor service 2,164,920.38
5. Processing fee 559,925.27
6. Packaging fee 29,149,030.33
7. Quality warranty 16,584,523.17
8. Water resource fee 4,000,000.00
9. Other current accounts 240,960,203.84
Total 610,705,549.59
Statement on other cash paid related to operation
None
(3) Other cash received related to investment
In RMB
Items Amount
Statement on other cash received related to investment
None
127
Bengang Steel Plates Co., Ltd. Interim Report 2013
(4) Other cash paid related to investment
In RMB
Items Amount
Statement on other cash paid related to investment
None
(5) Other cash received related to financing
In RMB
Items Amount
Statement on other cash received related to financing
None
(6) Other cash paid related to financing
In RMB
Items Amount
Remarks on other cash paid related to financing
None
69. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Supplementary Info. Amount of the Current Term Amount of the Previous Term
1. Net profit adjusted to cash flow of business operation -- --
Net profit 166,135,357.60 144,895,281.46
Plus: Asset impairment provision 23,860,192.31
Fixed asset depreciation, gas and petrol depreciation,
955,133,290.75 937,639,953.07
production goods depreciation
Amortizing of intangible assets 1,204,418.86 463,954.86
Financial expenses (“-“ for gains) 189,350,346.53 272,068,952.92
Decrease of deferred income tax asset (“-“ for increase) -7,158,287.98
Decrease of inventory (“-“ for increase) -323,265,027.86 59,372,686.88
Decrease of operational receivable items (“-“ for increase) -320,176,206.08 -983,065,607.26
Increase of operational payable items (“-“ for decrease) -177,078,462.07 -241,858,397.32
Cash flow generated by business operation, net 508,005,622.06 189,516,824.61
128
Bengang Steel Plates Co., Ltd. Interim Report 2013
2. Major investment and financing operation not involving
-- --
with cash
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 2,348,723,962.93 2,626,955,886.68
Less: Initial balance of cash 3,620,975,109.53 3,242,956,479.92
Net increasing of cash and cash equivalents -1,272,251,146.60 -616,000,593.24
(2) Information about acquisition or disposal of subsidiaries or businesses
In RMB
Supplementary Info. Occurred current term Occurred in previous term
I. Acquisition of subsidiaries and businesses -- --
II. Disposal of subsidiaries and businesses -- --
(3) Composition of cash and cash equivalents
In RMB
Items End of term Beginning of term
I. Cash 2,348,723,962.93 3,620,975,109.53
Incl: Cash in stock 236,410.92 18,088.64
Bank savings could be used at any time 2,348,487,552.01 3,540,890,520.75
III. Balance of cash and cash equivalents at end of term 2,348,723,962.93 3,620,975,109.53
Statement on supplementary information of cash flow statement
70. Notes to statement of change in owners’ equity
Please state titles and amounts of “Other” items which have been adjusted for their closing balance of last year, and retrospective
adjustment caused by merger of entities under common control
None
VIII. Accounting treatment of asset securitization
1. Please state the main trade arrangement, accounting treatment, and bankrupcy isolating
terms of capital securitilizing.
None
129
Bengang Steel Plates Co., Ltd. Interim Report 2013
2. Entities on which the Company has no control power but undertake the risks
In RMB
Total asset at end Total liability at Net asset at end Turnover of the Net profit of the
Name Note
of term end of term of term period current term
IX. Related parties and related transactions
1. Parent companies of the Company
Share of Voting
Ultimate
Name of Legal the parent power of
Relationsh Ownership Business Registered holder of Organizati
the parent Reg. Add. representat co. in the the parent
ip type property capital the on code
co. ive Company company
Company
% %
Liaoning
Benxi Controllin
Fully Provincial
Steel g Zhang 11972626-
state-owne Benxi Production 5.369 bil 82.07% 82.07% State-asset
(Group) shareholde Xiaofang 3
d Administra
Co., Ltd. r
tion
Particulars about the parent company of the Company
Business scope: steel smelt, mine exploitation, panel rolling, oxygen manufacturing, pipe manufacturing, power
generating, coal industry, special steel material manufacturing, heating, supply of the water, electricity, wind and
gas, metal processing, electro mechanics builds, device manufacturing, architecture installation, railway, highway
transportation, import and export trade, traveling industry, construction material , refractory material , measuring
device instrument, goods and materials supply and marketing, development of real estate, scientific research,
design , information service, property management, telecommunication, processing of waste iron, property leasing,
exchange of steel material, and recycling of waste oils (to the extent of licensed to the subsidiary companies), property
management; publishing of Bengang Daily (expire on December 31, 2013); designing and making of presswork and advertisement,
releasing, producing of TV advertisements in the country and abroad.
2. Subsidiaries of the Company
Full name Ownership Legal Share
Ownership Business Registered Voting Organizatio
of the of the Reg. Add. representati proportion
type property capital power % n code
subsidiary subsidiary ve %
Xiamen
Bengang Controlled Limited Zhang
Xiamen Sales 50.00 100% 100% 73788827-8
Steel Sales subsidiaries liability Guoming
Ltd.
130
Bengang Steel Plates Co., Ltd. Interim Report 2013
Wuxi
Bengang Controlled Limited Wen
Wuxi Sales 100.00 100% 100% 73654820-4
Steel Sales subsidiaries liability Yonggang
Ltd.
Tianjin
Bengang
Controlled Limited
Steel Tianjin Liu Chuang Sales 300.00 100% 100% 74135658-1
subsidiaries liability
Trading
Ltd.
Nanjing
Bengang
Controlled Limited Liu
Steel Nanjin Sales 115.00 100% 100% 75945466-5
subsidiaries liability Xiaodong
Material
Sales Ltd.
Yantai
Bengang Controlled Limited
Yantai Wang Lixin Sales 50.00 100% 100% 74451514-6
Steel Sales subsidiaries liability
Ltd.
Haerbin
Bengang
Controlled Limited 73137417-
Internationa Harbin Fei Jixi Sales 50.00 100% 100%
subsidiaries liability X
l Trading
Ltd.
Changchun
Bengang Controlled Limited Yang
Changchun Sales 50.00 100% 100% 74841484-4
Steel Sales subsidiaries liability Chuang
Ltd.
Guangzhou
Bengang Controlled Limited Wu
Guangzhou Sales 100.00 100% 100% 68328959-4
Trade Co., subsidiaries liability Shaogang
Ltd.
Shanghai
Bengang Controlled Limited
Shanghai Fei Jixi Sales 1,920.00 100% 100% 68408762-8
Metallurgy subsidiaries liability
Tech. Ltd.
Bengang
Steel Plate
Controlled Limited Wang
Liaoyang Liaoyuang Production 1,000.00 100% 100% 68968094-9
subsidiaries liability Zhengzhi
Orel Ball
Co., Ltd.
Dalian Controlled Limited Dalian Wang Shu Production 10,000.00 65% 65% 55498444-3
131
Bengang Steel Plates Co., Ltd. Interim Report 2013
Benruitong subsidiaries liability
Automobile
Material
Technologie
s Co., Ltd.
Bengang
Stainless
Controlled Limited Yu
Cool-rolling Dandong Production 120,000.00 100% 100% 69941004-5
subsidiaries liability Tianchen
(Dandong)
Co., Ltd.
3. Joint ventures and affiliates
Voting
Legal Shares held power of
Name of the Ownership Business Registered Relationshi Organizatio
Reg. Add. representati by the the
Companies type property capital p n code
ve Company % Company in
the entity %
I. Joint ventures
II. Affiliates
4. Other related parties
Name of the related parties Relation with the Company Organization code
Bengang Group International Trading Ltd. Same parent 701581055
Bengang Group Hong Kong Ltd. Same parent None
Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd. Same parent 717851072
Benxi Beiying Steel & Iron (Group) Co., Ltd. Both under Bengang Group 736737267
Benxi Steel (Group) Electronics Co., Ltd. Same parent 781648511
Benxi Steel (Group) Real-estate Development Co., Ltd. Same parent 819664921
Benxi Steel (Group) Steel Process and Logistics Co., Ltd. Same parent 752795993
Bengang (Group) Engineering Supervisory Co., Ltd. Same parent 736708677
Benxi Steel (Group) Machinery Co., Ltd. Same parent 701577718
Benxi Steel (Group) Construction Co., Ltd. Same parent 119726538
Benxi Steel (Group) Mining Co., Ltd. Same parent 701577726
Benxi Steel (Group) Thermal Power Development Co., Ltd. Same parent 701579297
Benxi Steel (Group) Designing Institute Same parent 78510290-3
Benxi Steel (Group) Industrial Development Co., Ltd. Same parent 701578120
132
Bengang Steel Plates Co., Ltd. Interim Report 2013
Benxi Steel (Group) Information & Automatic Tech. Co., Ltd. Same parent 752798182
Benxi Steel (Group) Construction & Repairing Co., Ltd. Same parent 701578219
Benxi Steel (Group) Metallurgy Residues Co., Ltd. Same parent 701578155
Benxi Steel (Group) Medical Co. Ltd. Same parent 701578526
Benxi Steel & Iron Group Ltd. News Center Same parent 701570954
Benxi Steel & Iron (Group) Zhengtai Construction Materials Co., Ltd. Same parent 67046738X
Benxi Steel (Group) Drilling Tools Co., Ltd. Same parent 74710835-1
Benxi Steel New Business Development Co., Ltd. Same parent 701578198
Dalian Boluole Steel Tube Ltd. Same parent 60480260-2
Guangshou Free Trade Zone Bengang Sales Co., Ltd. Both under Bengang Group 231289622
Liaoning Bengang Steel & Iron Trading Co., Ltd. Both under Bengang Group 78458403-1
Liaoning Hengtai Heavy Machine Co., Ltd. Same parent 736710320
Liaoning Hengtong Metallurgy Equipment Co., Ltd. Same parent 58416362X
Liaoning Metallurgy Technician College Same parent 463564144
Liaoning College of Metallurgy Technologies Same parent 463567636
Shanghai Bengang Steel & Iron Trading Co., Ltd. Both under Bengang Group 784796085
Tianjin Bengang Steel Plate Processing and Delivery Co., Ltd. Same parent 789375490
Tianjin Bengang Longxing Steel Processing Co., Ltd. Same parent 67941109-1
Yinkou Bengang International Logistics Co., Ltd. Both under Bengang Group 74712716-5
Benxi Beiying Steel & Iron Group Import & Export Co., Ltd. Both under Bengang Group 686628969
Statement on other related parties
None
5. Related Transactions
(1) Purchasing of goods and services
In RMB
Occurred current term Occurred in previous term
Pricing and Portion in Portion in
Subjects of the related
Related parties decision making similar similar
transactions Amount Amount
process transactio transactio
ns (%) ns (%)
Benxi Steel (Group) Upon agreement
Raw materials 0% 10.13 0%
Ltd. engaged
Benxi Steel (Group) Upon agreement
Land using rights 2,871.30 0.14% 2,871.30 0.13%
Ltd. engaged
133
Bengang Steel Plates Co., Ltd. Interim Report 2013
Benxi Steel (Group) Upon agreement
Maintaining 12,084.80 0.57% 9,639.55 0.43%
Ltd. engaged
Bengang Puxiang
Upon agreement
Cool Rolling Steel Raw materials 210,503.44 9.95% 235,813.46 10.41%
engaged
Sheet Co., Ltd.
Bengang Group Upon agreement
Repairing services 52.64 0% 94.60 0%
Mineral Co., Ltd. engaged
Bengang Group Upon agreement
Raw materials 271,584.20 12.84% 245,746.09 10.84%
Mineral Co., Ltd. engaged
Bengang Group Upon agreement
Transportation 7.10 0% 17.73 0%
Mineral Co., Ltd. engaged
Bengang Group Upon agreement
Raw materials 0% 53,275.44 2.35%
Hong Kong Ltd. engaged
Bengang Group
Upon agreement
Metallurgy Residue Raw materials 8,815.60 0.42% 5,297.60 0.23%
engaged
Ltd.
Benxi Steel (Group)
Upon agreement
Steel Process & Process fee 253.18 0.01% 125.57 0.01%
engaged
Logistics Ltd.
Bengang Group
Upon agreement
Property Raw materials 2,446.57 0.12% 2,256.45 0.1%
engaged
Development Ltd.
Bengang Group Property management Upon agreement
0% 53.77 0%
Property Co., Ltd. fee engaged
Bengang Group
Property management Upon agreement
Property 53.77 0%
fee engaged
Management Center
Bengang Group Upon agreement
Spare parts 12,587.48 0.6% 12,416.53 0.55%
Machinery Ltd. engaged
Bengang Group Upon agreement
Repairing services 268.86 0.01% 760.16 0.03%
Machinery Ltd. engaged
Bengang Group Upon agreement
Raw materials 0% 54.80 0%
Machinery Ltd. engaged
Benxi Steel (Group) Upon agreement
Spare parts 354.03 0.02% 3,376.94 0.15%
Construction Ltd. engaged
Benxi Steel (Group) Upon agreement
Repairing services 24,588.42 1.16% 7,100.91 0.31%
Construction Ltd. engaged
Benxi Steel (Group) Upon agreement
Raw materials 73.25 0% 56.83 0%
Construction Ltd. engaged
134
Bengang Steel Plates Co., Ltd. Interim Report 2013
Benxi Steel (Group) Upon agreement
Transportation 339.55 0.02% 229.47 0.01%
Construction Ltd. engaged
Benxi Steel (Group)
Upon agreement
Industrial Spare parts 2,379.32 0.11% 25.23 0%
engaged
Development Ltd.
Benxi Steel (Group)
Upon agreement
Industrial Raw materials 14,000.37 0.66% 13,741.45 0.61%
engaged
Development Ltd.
Benxi Steel (Group)
Upon agreement
Industrial Repairing services 748.95 0.04% 708.96 0.03%
engaged
Development Ltd.
Benxi Steel (Group)
Upon agreement
Industrial Transportation 436.65 0.02% 461.94 0.02%
engaged
Development Ltd.
Benxi Steel (Group)
Upon agreement
Repairing & Material and parts 375.32 0.02% 177.12 0.01%
engaged
Building Ltd.
Benxi Steel (Group)
Upon agreement
Repairing & Maintaining 8,614.31 0.41% 3,614.58 0.16%
engaged
Building Ltd.
Bengang Electronics Upon agreement
Raw materials 7,071.45 0.33% 6,996.36 0.31%
Co., Ltd. engaged
Bengang Electronics Upon agreement
Repairing services 990.76 0.05% 470.63 0.02%
Co., Ltd. engaged
Benxi Steel (Group)
Upon agreement
Drilling Tools Co., Spare parts 20.73 0% 796.00 0.04%
engaged
Ltd.
Bengang Group New
Industry Upon agreement
Labour security fee 224.17 0.01% 166.05 0.01%
Development Co., engaged
Ltd.
Liaoning Metallurgy Upon agreement
Spare parts 1,033.35 0.05% 141.95 0.01%
Technician College engaged
Benxi Steel (Group)
Upon agreement
Information and Spare parts 435.12 0.02% 349.27 0.02%
engaged
Automatic Tech. Ltd.
Benxi Steel (Group)
Upon agreement
Information and Repairing services 415.89 0.02% 1,835.84 0.08%
engaged
Automatic Tech. Ltd.
Bengang Group Heating fee Upon agreement 523.02 0.02% 3.66 0%
135
Bengang Steel Plates Co., Ltd. Interim Report 2013
Thermal Power engaged
Development Co.,
Ltd.
Bengang Designing
Upon agreement
& Researching Repairing services 507.70 0.02% 4.92 0%
engaged
Institute Ltd.
Benxi Steel (Group) Upon agreement
Freight 2,200.39 0.1% 2,061.37 0.09%
Trucking Ltd. engaged
Benxi Beiying Steel
Upon agreement
& Iron (Group) Co., Raw materials 25,663.49 1.21% 1,845.43 0.08%
engaged
Ltd.
Liaoning Hengtong
Raw materials and Upon agreement
Metallurgy 2,959.43 0.14%
parts engaged
Equipment Co., Ltd.
Liaoning Hengtai
Raw materials and Upon agreement
Heavy Machine Co., 2,303.16 0.11%
parts engaged
Ltd.
Liaoning Hengtai
Upon agreement
Heavy Machine Co., Repairing and service 915.80 0.04%
engaged
Ltd.
Total 618,703.56 29.25% 561,892.25 26.05%
Sales of goods and services
In RMB
Occurred current term Occurred in previous term
Pricing and Portion in Portion in
Subjects of the related
Related parties decision making similar similar
transactions Amount Amount
process transactio transactio
ns (%) ns (%)
Benxi Steel (Group) Upon agreement
Material and parts 574.95 0.03% 531.32 0.02%
Ltd. engaged
Benxi Steel (Group) Upon agreement
Power supply 5,257.78 0.23% 191.90 0.01%
Ltd. engaged
Dalian Boluole Steel Upon agreement
Products 542.48 0.02% 1,489.42 0.07%
Tube Ltd. engaged
Liaoning Bengang
Upon agreement
Steel & Iron Trading Products 28,348.20 1.26% 13,837.50 0.61%
engaged
Co., Ltd.
Benxi Steel (Group)
Upon agreement
Steel Process & Products 23,618.98 1.05% 19,178.00 0.84%
engaged
Logistics Ltd.
136
Bengang Steel Plates Co., Ltd. Interim Report 2013
Benxi Steel (Group)
Upon agreement
Steel Process & Power supply 52.14 0% 48.22 0%
engaged
Logistics Ltd.
Bengang Group
Upon agreement
Dahe Industry Co., Power supply 66.41 0% 40.80 0%
engaged
Ltd.
Benxi Steel (Group)
Upon agreement
Industrial Material and parts 6,205.42 0.28% 1,081.56 0.05%
engaged
Development Ltd.
Benxi Steel (Group)
Upon agreement
Industrial Power supply 174.76 0.01% 124.39 0.01%
engaged
Development Ltd.
Benxi Steel (Group) Upon agreement
Material and parts 2,388.03 0.11% 4,342.72 0.19%
Construction Ltd. engaged
Benxi Steel (Group) Upon agreement
Power supply 492.98 0.02% 648.37 0.03%
Construction Ltd. engaged
Bengang Group Upon agreement
Power supply 1,210.25 0.05% 1,410.61 0.06%
Machinery Ltd. engaged
Bengang Group Upon agreement
Material and parts 14,862.34 0.66% 29,248.74 1.28%
Mineral Co., Ltd. engaged
Bengang Group Upon agreement
Power supply 38,661.22 1.72% 38,899.93 1.7%
Mineral Co., Ltd. engaged
Bengang Group Upon agreement
Freight income 85.67 0% 636.19 0.03%
Mineral Co., Ltd. engaged
Bengang Group New
Industry Upon agreement
Power supply 17.40 0% 18.13 0%
Development Co., engaged
Ltd.
Benxi Steel (Group)
Upon agreement
Repairing & Material and parts 124.49 0.01% 0.00
engaged
Building Ltd.
Benxi Steel (Group)
Upon agreement
Repairing & Power supply 83.68 0% 96.59 0%
engaged
Building Ltd.
Bengang Group
Upon agreement
Metallurgy Residue Material and parts 5,325.33 0.24% 7,321.53 0.32%
engaged
Ltd.
Bengang Group
Upon agreement
Metallurgy Residue Power supply 242.15 0.01% 238.75 0.01%
engaged
Ltd.
137
Bengang Steel Plates Co., Ltd. Interim Report 2013
Bengang Electronics Upon agreement
Power supply 40.56 0% 62.95 0%
Co., Ltd. engaged
Bengang Puxiang
Upon agreement
Cool Rolling Steel Products 342,077.00 15.19% 361,004.02 15.8%
engaged
Sheet Co., Ltd.
Bengang Puxiang
Upon agreement
Cool Rolling Steel Material and parts 22,906.45 1.02% 24,185.51 1.06%
engaged
Sheet Co., Ltd.
Bengang Puxiang
Upon agreement
Cool Rolling Steel Power supply 21,112.26 0.94% 21,894.36 0.96%
engaged
Sheet Co., Ltd.
Bengang Group
Thermal Power Upon agreement
Power supply 3,411.58 0.15% 4,950.34 0.22%
Development Co., engaged
Ltd.
Bengang Group
Thermal Power Upon agreement
Material and parts 126.90 0.01% 3,371.22 0.15%
Development Co., engaged
Ltd.
Bengang Group Upon agreement
Power supply 258.88 0.01% 321.55 0.01%
Property Co., Ltd. engaged
Tianjin Bengang
Steel Plate Upon agreement
Products 40.17 0%
Processing and engaged
Delivery Co., Ltd.
Benxi Beiying Steel
Upon agreement
& Iron (Group) Co., Material and parts 34,875.15 1.55% 11,689.73 0.51%
engaged
Ltd.
Liaoning Hengtong
Upon agreement
Metallurgy Power supply 556.13 0.02%
engaged
Equipment Co., Ltd.
Liaoning Hengtong
Upon agreement
Metallurgy Material and parts 2,179.27 0.1%
engaged
Equipment Co., Ltd.
Total 555,919.02 24.69% 546,864.36 23.94%
(2) Related trusteeship or contracting
Related trusteeship or contracting in which the Company is the undertaker
In RMB
138
Bengang Steel Plates Co., Ltd. Interim Report 2013
Nature of the Gains from the
Name of the Name of the
asset to be Start date Terminating date Pricing basis deal in report
employer undertaker
undertaken period
Related trusteeship or outsourcing in which the Company is the employer
In RMB
Amount of
Name of the Name of the Nature of the
Start date End date Pricing basis payment
employer undertaker entrust
recognized
Statement on the trusteeship and contracting:
None
(3) Related leasing
The Company is the lender
In RMB
Category of
Name of the Name of the Starting Ending Rental recognized
asset for Pricing basis
owner tenant date date in the period
rent
To be decided by both of the parties according to
Benxi Steel Bengang
2300 hot January Dec 31 the operation of equipment and on the basis of
(Group) Steel Plates -180,000,000.00
rolling line 1, 2012 2014 original value and depreciation, as well as national
Co., Ltd. Co., Ltd.
taxes. Not greater than RMB350 million for rental.
Benxi Steel Bengang Rental for the 7,669,068.17 square meters of land
Land using April 15,
(Group) Steel Plates was at RMB0.624 per month per square meter, -57,426,000.00
right 2009
Co., Ltd. Co., Ltd. namely annual rental of RMB57.426 million.
The Company is the undertaker
In RMB
Rental
Name of the Name of the Category of asset
Starting date Ending date Pricing basis recognized in the
owner tenant for rent
period
Statement on related leasing
None
(4) Related guarantees
In RMB
Amount Completed or
The Guarantor The beneficiary Start date Due date
guaranteed not
Bengang Steel Plates Co.,
Bengang Group Co., Ltd. 200,000,000.00 Sept 29 2012 Sept 28 2013 No
Ltd.
139
Bengang Steel Plates Co., Ltd. Interim Report 2013
Bengang Steel Plates Co.,
Bengang Group Co., Ltd. 300,000,000.00 Nov 02 2012 Nov 1 2013 No
Ltd.
Bengang Steel Plates Co.,
Bengang Group Co., Ltd. 50,000,000.00 Dec 04 2012 Nov 28 2013 No
Ltd.
Bengang Steel Plates Co.,
Bengang Group Co., Ltd. 15,000,000.00 April 22, 2013 Apr 16 2014 No
Ltd.
Bengang Steel Plates Co., August 13,
Bengang Group Co., Ltd. 50,000,000.00 Aug 12 2013 No
Ltd. 2012
Bengang Steel Plates Co.,
Bengang Group Co., Ltd. 50,000,000.00 Sept 21 2012 Sept 20 2013 No
Ltd.
Bengang Steel Plates Co.,
Bengang Group Co., Ltd. 20,000,000.00 Dec 03 2012 Nov 28 2013 No
Ltd.
Bengang Steel Plates Co.,
Bengang Group Co., Ltd. 80,000,000.00 Mar 27 2013 Mar 25 2013 No
Ltd.
Bengang Steel Plates Co.,
Bengang Group Co., Ltd. 80,000,000.00 Jun 08 2013 Jun 04 2014 No
Ltd.
Bengang Steel Plates Co.,
Bengang Group Co., Ltd. 70,000,000.00 Apr 30 2007 Apr 29 2014 No
Ltd.
Bengang Steel Plates Co.,
Bengang Group Co., Ltd. 130,000,000.00 Apr 30 2007 Apr 29 2014 No
Ltd.
Bengang Steel Plates Co.,
Bengang Group Co., Ltd. 310,000,000.00 Jul 2 2010 Jul 1 2013 No
Ltd.
Bengang Steel Plates Co.,
Bengang Group Co., Ltd. 90,000,000.00 Dec 21 2012 Nov 20 2015 No
Ltd.
Bengang Steel Plates Co.,
Benxi Steel (Group) Ltd. 60,000,000.00 Sept 7 2012 Sept 6 2013 No
Ltd.
Bengang Steel Plates Co.,
Benxi Steel (Group) Ltd. 20,000,000.00 Sept 26 2012 Sept 25 2013 No
Ltd.
Bengang Steel Plates Co.,
Benxi Steel (Group) Ltd. 12,000,000.00 Mar 25 2013 Mar 24 2014 No
Ltd.
Bengang Steel Plates Co.,
Benxi Steel (Group) Ltd. 250,000,000.00 May 13 2013 Nov 11 2013 No
Ltd.
Bengang Steel Plates Co.,
Benxi Steel (Group) Ltd. 20,000,000.00 Mar 7 2013 Mar 6 2014 No
Ltd.
Bengang Steel Plates Co.,
Benxi Steel (Group) Ltd. 25,000,000.00 Mar 18 2013 Mar 13 2014 No
Ltd.
Bengang Steel Plates Co.,
Benxi Steel (Group) Ltd. 40,000,000.00 Mar 29 2013 Mar 27 2014 No
Ltd.
140
Bengang Steel Plates Co., Ltd. Interim Report 2013
Bengang Steel Plates Co.,
Benxi Steel (Group) Ltd. 50,000,000.00 Apr 15 2013 Oct 10, 2013 No
Ltd.
Bengang Group Mineral Co., Bengang Steel Plates Co.,
100,000,000.00 Apr 25 2013 Oct 23 2013 No
Ltd. Ltd.
Statement on related guarantees
None
(5) Capital borrowing with related parties
In RMB
Related parties Amount of demolition Start date Expired on Remarks
Borrow in
Benxi Steel (Group) Co., Ltd. 4,004,250.00 July 30 2012 Jul 09 2013
Benxi Steel (Group) Co., Ltd. 10,704,600.00 Aug 10 2012 Aug 09 2013
Benxi Steel (Group) Co., Ltd. 1,381,294.54 Sept 6 2012 Sept 5 2013
Benxi Steel (Group) Co., Ltd. 18,325,100.00 Nov 6 2012 Nov 5 2013
Benxi Steel (Group) Co., Ltd. 11,844,877.99 Dec 27 2012 Dec 26 2013
Benxi Steel (Group) Co., Ltd. 16,105,131.91 Apr 25 2013 Apr 24 2014
Benxi Steel (Group) Co., Ltd. 10,026,015.00 Jun 04 2013 Jun 3 2014
72,391,269.44
Lend out
(6) Asset transferring and debt reconstruction with related parties
In RMB
Occurred current term Occurred in previous term
Principle of
Portion in Portion in
Type of Subjects of the pricing the
Related parties similar similar
trade related transactions related Amount Amount
transactio transactio
transactions
ns (%) ns (%)
(7) Other related transactions
None
6. Receivable and payables due with related parties
Receivable accounts due from related parties
In RMB
141
Bengang Steel Plates Co., Ltd. Interim Report 2013
At end of term At beginning of term
Projects Related parties Book Bad debt Book Bad debt
balance provision balance provision
Account receivable
Benxi Steel (Group) Electronics Co., Ltd. 114.17 67.02
Benxi Steel (Group) Machinery Co., Ltd. 1,169.18 133.98 1,802.46 133.98
Benxi Steel (Group) Construction Co., Ltd. 1,157.31 9.08 2,546.35 9.08
Benxi Steel (Group) Industrial Development
1,930.60 30.56 1,413.56 30.56
Co., Ltd.
Benxi Steel New Business Development Co.,
428.77 50.23 397.09 50.23
Ltd.
Benxi Steel (Group) Construction & Repairing
91.15
Co., Ltd.
Benxi Steel (Group) Metallurgy Residues Co.,
1,476.04 29.42
Ltd.
Benxi Steel (Group) Medical Co. Ltd. 88.52 9.59 66.13 9.59
Benxi Steel (Group) Thermal Power
869.12 39.73
Development Co., Ltd.
Sub-total 7,324.85 233.44 6,361.76 233.44
Prepayments
Benxi Beiying Steel & Iron (Group) Co., Ltd. 4.28
Benxi Steel (Group) Construction Co., Ltd. 2,548.74
Liaoning Hengtai Heavy Machine Co., Ltd. 972.63
Bengang Puxiang Cool Rolling Steel Sheet Co.,
3,249.85 16,823.81
Ltd.
Benxi Steel (Group) Machinery Co., Ltd. 1,589.30 535.17
Sub-total 7,387.89 0.00 18,335.89 0.00
Other account
receivable
Benxi Steel (Group) Real-estate Development
313.20 0.75 363.22 0.75
Co., Ltd.
Bengang (Group) Engineering Supervisory Co.,
24.98 24.45 24.91 24.45
Ltd.
Benxi Beiying Steel & Iron Group Import &
133.82
Export Co., Ltd.
Liaoning College of Metallurgy Technologies 9.82 126.69
Sub-total 481.82 25.20 514.82 25.20
142
Bengang Steel Plates Co., Ltd. Interim Report 2013
Account payable due to related parties
In RMB
Projects Related parties Amount at end of term Initial ammount
Account payable
Benxi Beiying Steel & Iron (Group) Co., Ltd. 3,267.60 8,969.97
Benxi Steel (Group) Electronics Co., Ltd. 1,574.97 435.27
Benxi Steel (Group) Real-estate Development Co., Ltd. 655.37 703.06
Bengang Group International Trading Ltd. 223,950.17 133,964.39
Benxi Steel (Group) Machinery Co., Ltd. 1,065.07 2,821.03
Benxi Steel (Group) Construction Co., Ltd. 24,303.64 20,249.37
Benxi Steel (Group) Mining Co., Ltd. 35,094.97 34,504.16
Benxi Steel (Group) Industrial Development Co., Ltd. 4,988.77 3,677.74
Benxi Steel New Business Development Co., Ltd. 3.86 71.57
Benxi Steel (Group) Construction & Repairing Co., Ltd. 7,411.49 4,852.00
Benxi Steel (Group) Metallurgy Residues Co., Ltd. 9,326.46 3,392.37
Benxi Steel (Group) Medical Co. Ltd. 3.00 2.04
Benxi Steel (Group) Information & Automatic Tech. Co., Ltd. 4,875.55 6,738.78
Liaoning Hengtai Heavy Machine Co., Ltd. 705.66
Benxi Steel (Group) Drilling Tools Co., Ltd. 3.19 15.42
Liaoning Metallurgy Technician College 332.76 317.86
Liaoning Bengang Steel & Iron Trading Co., Ltd. 61.93 159.20
Benxi Steel (Group) Thermal Power Development Co., Ltd. 796.53 169.07
Liaoning Hengtong Metallurgy Equipment Co., Ltd. 591.64 303.23
Sub-total 319,259.77 221,555.79
Notes payable
Benxi Steel (Group) Construction Co., Ltd. 79.13
Benxi Steel (Group) Industrial Development Co., Ltd. 35.70
Liaoning Bengang Steel & Iron Trading Co., Ltd. 5.31 121.44
Benxi Steel (Group) Mining Co., Ltd. 561.00
Benxi Steel (Group) Machinery Co., Ltd. 268.05
Benxi Beiying Steel & Iron (Group) Co., Ltd. 13.90
Sub-total 566.31 518.22
Other account payable
Benxi Steel (Group) Real-estate Development Co., Ltd. 357.92 428.18
143
Bengang Steel Plates Co., Ltd. Interim Report 2013
Bengang Group International Trading Ltd. 61.43 44.76
Benxi Steel (Group) Machinery Co., Ltd. 449.53 148.58
Benxi Steel (Group) Construction Co., Ltd. 1,301.06 1,707.45
Benxi Steel New Business Development Co., Ltd. 254.17 1,093.23
Benxi Steel (Group) Medical Co. Ltd. 3.86 7.79
Benxi Steel (Group) Information & Automatic Tech. Co., Ltd. 507.07 308.78
Benxi Steel (Group) Steel Process and Logistics Co., Ltd. 600.34
Benxi Steel (Group) Co., Ltd. 7,106.26 15,509.25
Benxi Steel & Iron Group Ltd. News Center 366.99
Liaoning Metallurgy Technician College 20.36 49.30
Liaoning Hengtai Heavy Machine Co., Ltd. 1,268.50 899.31
Benxi Beiying Steel & Iron Group Import & Export Co., Ltd. 10,322.09
Sub-total 11,930.50 30,885.71
Advances received
Benxi Steel (Group) Construction Co., Ltd. 249.56 2.01
Tianjin Bengang Longxing Steel Processing Co., Ltd. 0.00 1,888.38
Benxi Steel (Group) Industrial Development Co., Ltd. 476.69 473.80
Benxi Steel (Group) Metallurgy Residues Co., Ltd. 102.85
Benxi Steel (Group) Steel Process and Logistics Co., Ltd. 2,850.26 3,855.93
Dalian Boluole Steel Tube Ltd. 231.91 179.22
Liaoning Bengang Steel & Iron Trading Co., Ltd. 996.45 2,818.67
Liaoning Hengtong Metallurgy Equipment Co., Ltd. 229.20 225.49
Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd. 16,499.85 11,739.29
Shanghai Bengang Steel & Iron Trading Co., Ltd. 1,948.13 1,848.13
Tianjin Bengang Steel Plate Processing and Delivery Co., Ltd. 44.02 91.02
Sub-total 23,526.07 23,224.79
X. Contingent Events
1. Contingent liabilities formed by material lawsuit or arbitration, and their influences on the
financial position
None
144
Bengang Steel Plates Co., Ltd. Interim Report 2013
2. Contingent liability formed by providing of guarantee to other parties and its influence on
the financial position
None
Other contingent liabilities and influences on finance position
None
XI. Commitment issues
1. Major commitment issues
None
2. Fulfilling of commitments made in previous periods
None
XII. Post-balance-sheet-date issues
1. Statement on material post-balance-sheet events
In RMB
Influence on the financial
Reason for not able to estimate
Items Contents position and business
the influence
performance
2. Statement on profit distribution in post balance sheet period
In RMB
3. Statement on other issues in post balance sheet period
Adjustment in post balance sheet days up to the date when this report is signed.
Accorcing to the resolutions adopted at the 18th meeting of the 5th term of Board held on April 22, 2013
about using the idle capital in financing operations, the Company purchased RMB800 million of “Prior 1” –
financial products issued by Industrial Bank Co., Ltd. on July 4, 2013. Which were repurchased on July 24 2013
and July 26 with gains of RMB2,027,397.27.
145
Bengang Steel Plates Co., Ltd. Interim Report 2013
XIII. Other material issues
1. Non-monetary asset exchange
No non-monetary asset exchange occurred this period.
2. Debt reconstruction
There is no such major debt reconstruction to be disclosed. The Company conducted debtor reconstruction with
multiple suppliers and formed reconstruction gains of RMB10,876,068.52.
3. Enterprise merger
None
4. Rental
None
5. Financial instruments convertible to shares issued to outside
None
6. Assets and liabilities on fair value basis
In RMB
Accumulative
Gain/loss from Impairment
change in fair value Amount at end of
Items Initial ammount change of fair value provisions provided
accounted into term
in the term in the current term
equities
Financial assets
Total of above 0.00 0.00
Financial liabilities 0.00 0.00
7. Financial assets and liabilities in foreign currencies
In RMB
Gain/loss from Accumulative Impairment
Amount at end of
Items Initial ammount change of fair value change in fair value provisions provided
term
in the term accounted into in the current term
146
Bengang Steel Plates Co., Ltd. Interim Report 2013
equities
Financial assets
Subtotal of financial
0.00 0.00 0.00 0.00 0.00
assets
Financial liabilities 0.00 0.00 0.00 0.00 0.00
8. Main contents of annual rewarding plan and material changes
None
9. Others
None
XIV. Notes to main items of the financial report of the parent company
1. Account receivable
(1) Account receivable
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Categories Propo
Proporti Proporti Proporti
Amount rtion Amount Amount Amount
on % on % on %
%
Receivables provided bad debt provision in groups
Group 1: on age basis 554,448,340.22 100% 138,464,953.35 24.97% 924,854,044.75 100% 155,890,301.75 16.86%
Sub-total of group 554,448,340.22 100% 138,464,953.35 24.97% 924,854,044.75 100% 155,890,301.75 16.86%
Total 554,448,340.22 -- 138,464,953.35 -- 924,854,044.75 -- 155,890,301.75 --
Remarks on categories of receivable account
None
Receivable accounts with large amount individually and bad debt provisions were provided
[] Applicable; [V] Not applicable
Receivable accounts in the portfolio on which bad debt provisions were provided on age basis
[V] Applicable Not applicable
In RMB
End of term Beginning of term
Age
Book balance Bad debt provision Book balance Bad debt provision
147
Bengang Steel Plates Co., Ltd. Interim Report 2013
Proporti Proporti
Amount Amount
on % on %
within 1 yr
In which: -- -- -- -- -- --
247,537,915.19 44.65% 269,436,651.53 29.14%
Subtotal of
247,537,915.19 44.65% 269,436,651.53 29.14%
within 1 year
1-2 years 170,932,625.16 30.83% 8,546,631.26 519,439,593.35 56.16% 25,971,979.66
2-3 years 7,574,347.23 1.37% 1,514,869.45 7,574,347.23 0.82% 1,514,869.45
Over 3 yrs 128,403,452.64 23.16% 128,403,452.64 128,403,452.64 13.88% 128,403,452.64
Total 554,448,340.22 -- 138,464,953.35 924,854,044.75 -- 155,890,301.75
Receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
[] Applicable; [V] Not applicable
Receivable accounts in the portfolio on which bad debt provisions are provided on other basis
[] Applicable; [V] Not applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of period
[] Applicable; [V] Not applicable
(2) Receivable accounts written back or retrieved in the report period
In RMB
Bad debt provision
Description of the receivable Reason to write back Basis of original bad Amount written back or
provided before writing
accounts or retrieve debt provision retrieved
back or retrieving
Bad debt provisions on receivable accounts with single large amount or minor amount but tested individually at end of report period
In RMB
Description of the
Book balance Amount of bad debt Providing rate (%) Reason
receivable accounts
Remarks on receivable accounts with minor single amount but with greater risks after combining with accounts with similar risks:
None
(3) Receivable accounts actually written off in the report period
In RMB
Name of the Property of the Reason of writing Occurred under
Date of written off Amount written off
companies receivable account off related relationship
Remarks on writing off of receivable accounts
None
148
Bengang Steel Plates Co., Ltd. Interim Report 2013
(4) Particulars about the receivable accounts due from shareholders with 5% or over of the
Company’s shares
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
(5) Nature or description of other receivable accounts with large amount
None
(6) Top 5 receivable accounts
In RMB
Relation with the Portion in total
Name of the companies Amount Ages
Company receivables
Bengang Stainless
Cool-rolling (Dandong) Subsidiaries 197,019,714.38 within 1 yr 35.53%
Co., Ltd.
Huayou Steel Tube Co.,
Client 23,828,708.55 within 1 yr 4.3%
Ltd. Yangzhou Branch
Benxi Steel (Group)
Industrial Development Related parties 19,305,998.29 within 1 yr 3.48%
Co., Ltd.
Benxi Steel (Group)
Metallurgy Residues Co., Related parties 14,760,352.57 within 1 yr 2.66%
Ltd.
Wanfangdian Bearing
Client 13,807,413.43 within 1 yr 2.49%
Co., Ltd.
Total -- 268,722,187.22 -- 48.46%
(7) Account receivable from related parties
In RMB
Name of the companies Relation with the Company Amount Portion in total receivables
Bengang Stainless
Cool-rolling (Dandong) Co., Subsidiaries 197,019,714.38 35.53%
Ltd.
Benxi Steel (Group)
Same parent 1,141,749.27 0.21%
Electronics Co., Ltd.
149
Bengang Steel Plates Co., Ltd. Interim Report 2013
Benxi Steel (Group)
Same parent 11,691,804.74 2.11%
Machinery Co., Ltd.
Benxi Steel (Group)
Same parent 11,573,084.30 2.09%
Construction Co., Ltd.
Benxi Steel (Group) Industrial
Same parent 19,305,998.29 3.48%
Development Co., Ltd.
Benxi Steel New Business
Same parent 4,287,668.25 0.77%
Development Co., Ltd.
Benxi Steel (Group)
Construction & Repairing Co., Same parent 911,504.35 0.16%
Ltd.
Benxi Steel (Group)
Same parent 14,760,352.57 2.66%
Metallurgy Residues Co., Ltd.
Benxi Steel (Group) Medical
Same parent 885,223.36 0.16%
Co. Ltd.
Benxi Steel (Group) Thermal
Same parent 8,691,189.89 1.57%
Power Development Co., Ltd.
Total -- 270,268,289.40 48.74%
（8）
RMB0.00 transferred under account receivable not satisfying the conditions of termination.
(9) If securitilizing performed on target asset with purpose of receivable account, please brief
the related arrangements
None
2. Other account receivable.
(1) Other receivable accounts
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Categories Propo Propo Propo Propo
Amount rtion Amount rtion Amount rtion Amount rtion
% % % %
Other receivables provided bad debt provision in groups
Group 1: on age basis 540,843,885.29 99.68 50,989,690.91 9.43% 677,280,031.66 99.74 50,989,690.91 7.53%
150
Bengang Steel Plates Co., Ltd. Interim Report 2013
% %
99.68 99.74
Sub-total of group 540,843,885.29 50,989,690.91 9.43% 677,280,031.66 50,989,690.91 7.53%
% %
Other account receivable
with minor individual
1,740,000.00 0.32% 1,740,000.00 0.26%
amount but bad debt
provision is provided
Total 542,583,885.29 -- 50,989,690.91 -- 679,020,031.66 -- 50,989,690.91 --
Remarks on other types of receivable accounts
None
Other receivable accounts with major single amount and bad debt provision drawn upon them
[] Applicable; [V] Not applicable
Other receivable accounts in the portfolio on which bad debt provisions are provided on age basis
[V] Applicable Not applicable
In RMB
End of term Beginning of term
Book balance Book balance
Age
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on % on %
within 1 yr
In which: -- -- -- -- -- --
479,317,347.53 88.34% 615,753,493.90 90.69%
Subtotal of
479,317,347.53 88.34% 615,753,493.90 90.69%
within 1 year
1-2 years 3,073,746.26 0.57% 153,687.31 3,073,746.26 0.45% 153,687.31
2-3 years 9,520,984.87 1.75% 1,904,196.97 9,520,984.87 1.4% 1,904,196.97
Over 3 yrs 50,671,806.63 9.34% 48,931,806.63 50,671,806.63 7.46% 48,931,806.63
Total 542,583,885.29 -- 50,989,690.91 679,020,031.66 -- 50,989,690.91
Other receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
[] Applicable; [V] Not applicable
Other receivable accounts in the portfolio on which bad debt provision are provided on other basis
[] Applicable; [V] Not applicable
Other receivable accounts with minor amount but were provided bad debt provisions individually at end of period
[] Applicable; [V] Not applicable
(2) Other receivable accounts written back or retrieved in the report period
In RMB
151
Bengang Steel Plates Co., Ltd. Interim Report 2013
Bad debt provision
Description of other Reason to write back Basis of original bad Amount written back or
provided before writing
receivables or retrieve debt provision retrieved
back or retrieving
Bad debt provisions on other receivable accounts with single large amount or minor amount but tested individually at end of report
period
In RMB
Description of the
Book balance Amount of bad debt Providing rate (%) Reason
receivable accounts
Other receivable accounts in the portfolio which has minor single amount but with greater risk after combined in the portfolio
None
(3) Other receivable accounts actually written off in the report period
In RMB
Name of the Reason of writing Occurred under related
Property of account Date of written off Amount written off
companies off relationship
Remark on writing off of other receivable accounts
None
(4) Particulars about the other receivable accounts due from shareholders with 5% or over of
the Company’s shares in the report period
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
(5) Natures or contents of other receivable accounts with large amount
None
(6) Top 5 debtors of other receivable accounts
In RMB
Relation with the Portion in total other
Name of the companies Amount Ages
Company receivables (%)
Yantai Bengang Steel
Subsidiaries 57,267,128.68 within 1 yr 10.55%
Sales Ltd.
Freight for main clients Transportation Co. 17,911,189.14 within 1 yr 3.3%
Nanjing Bengang Steel
Subsidiaries 15,225,999.59 within 1 yr 2.81%
Material Sales Ltd.
152
Bengang Steel Plates Co., Ltd. Interim Report 2013
National Tax Bureau
Tax bureau 11,390,506.00 within 1 yr 2.1%
Bengang Office
Tianjin Bengang Steel
Subsidiaries 11,372,689.66 within 1 yr 2.1%
Trading Ltd.
Total -- 113,167,513.07 -- 20.86%
(7) Other accounts receivable from related parties
In RMB
Portion in total other receivables
Name of the companies Relation with the Company Amount
(%)
Benxi Steel (Group)
Real-estate Development Co., Same parent 3,132,020.28 0.58%
Ltd.
Bengang (Group) Engineering
Same parent 249,773.95 0.05%
Supervisory Co., Ltd.
Benxi Beiying Steel & Iron
Group Import & Export Co., Both under Bengang Group 1,338,217.09 0.25%
Ltd.
Liaoning College of
Same parent 98,223.40 0.02%
Metallurgy Technologies
Total -- 4,818,234.72 0.9%
（8）
RMB0.00 transferred under other account receivable not satisfying the conditions of termination.
(9) If securitilizing performed on target asset with purpose of other receivable account, please
brief the related arrangements
None
153
Bengang Steel Plates Co., Ltd. Interim Report 2013
3. Long-term equity investment
In RMB
Voting Statement on Impairment Cash
Percentage of
Company invested Calculating Openning power in differences between Impairment provision dividend of
Investment cost Changed by Closing balance share in the
in basis balance the the shareholding provision provided this the current
firm %
firm % and voting rights term term
Guangzhou
Bengang Trade Cost basis 1,000,000.00 1,000,000.00 1,000,000.00 100% 100%
Co., Ltd.
Shanghai Bengang
Metallurgy Tech. Cost basis 19,200,000.00 19,200,000.00 19,200,000.00 100% 100%
Ltd.
Bengang Steel
Plate Liaoyang Cost basis 529,899,801.38 529,899,801.38 529,899,801.38 100% 100%
Orel Ball Co., Ltd.
Dalian Benruitong
Automobile
Material Cost basis 65,000,000.00 65,000,000.00 65,000,000.00 65% 65%
Technologies Co.,
Ltd.
Bengang Stainless
Cool-rolling
Cost basis 1,200,000,000.00 500,000,000.00 700,000,000.00 1,200,000,000.00 100% 100%
(Dandong) Co.,
Ltd.
Changchun Cost basis -1,355,124.64 -1,355,124.64 -1,355,124.64 100% 100%
154
Bengang Steel Plates Co., Ltd. Interim Report 2013
Bengang Steel
Sales Ltd.
Haerbin Bengang
International Cost basis 423,398.23 423,398.23 423,398.23 100% 100%
Trading Ltd.
Nanjing Bengang
Steel Material Cost basis 2,081,400.65 2,081,400.65 2,081,400.65 100% 100%
Sales Ltd.
Wuxi Bengang
Cost basis 936,718.57 936,718.57 936,718.57 100% 100%
Steel Sales Ltd.
Xiamen Bengang
Cost basis 1,095,711.66 1,095,711.66 1,095,711.66 100% 100%
Steel Sales Ltd.
Yantai Bengang
Cost basis 19,600,329.41 19,600,329.41 19,600,329.41 100% 100%
Steel Sales Ltd.
Tianjin Bengang
Cost basis 33,318,095.80 33,318,095.80 33,318,095.80 100% 100%
Steel Trading Ltd.
Tianjin Bengang
Longxing Steel
Cost basis 3,888,980.00 3,888,980.00 3,888,980.00 20% 20%
Processing Co.,
Ltd.
China Steel
Shanghai Steel
Cost basis 10,058,250.00 10,058,250.00 10,058,250.00 15% 15%
Processing Co.,
Ltd.
Total -- 1,885,147,561.06 1,185,147,561.06 700,000,000.00 1,885,147,561.06 -- -- --
Statement on long-term equity investment
The Company increased input of RMB700 million to Stainless Cool Rolling Dandong Co., Ltd. by means of transferring of debt.
155
Bengang Steel Plates Co., Ltd. Interim Report 2013
4. Operation income and operation cost
(1) Operation incomes
In RMB
Items Occurred current term Occurred in previous term
Major business turnover 19,001,469,281.90 19,003,107,192.07
Other business income 2,626,674,355.71 2,646,068,720.91
Total 21,628,143,637.61 21,649,175,912.98
Operation cost 20,519,434,445.03 20,280,233,614.44
(2) Business segments (on industries)
In RMB
Occurred current term Occurred in previous term
Name of industry
Turnover Operation cost Turnover Operation cost
Industries 19,001,469,281.90 18,065,388,660.12 19,003,107,192.07 17,734,906,477.81
Total 19,001,469,281.90 18,065,388,660.12 19,003,107,192.07 17,734,906,477.81
(3) Business segments (on products)
In RMB
Occurred current term Occurred in previous term
Products or services
Turnover Operation cost Turnover Operation cost
Steel plate 18,635,285,353.20 17,751,511,622.84 18,663,342,318.00 17,449,208,241.89
Steel billet 112,972.56 101,067.24 0.00 0.00
Others 366,070,956.14 313,775,970.04 339,764,874.07 285,698,235.92
Total 19,001,469,281.90 18,065,388,660.12 19,003,107,192.07 17,734,906,477.81
(4) Business segments (on regions)
In RMB
Occurred current term Occurred in previous term
Name of districts
Turnover Operation cost Turnover Operation cost
Northeast 5,887,079,974.89 559,706,127,151.46 4,732,910,275.27 4,513,716,315.97
North 2,069,745,208.24 196,778,212,566.40 2,597,018,437.47 2,406,110,778.69
156
Bengang Steel Plates Co., Ltd. Interim Report 2013
East 5,603,458,514.60 532,741,202,300.26 6,272,275,635.20 5,811,198,640.35
Northwest 36,962,769.98 3,514,185,117.67 90,987,276.21 84,298,772.34
Mid-south 2,266,128,494.18 215,449,086,561.59 2,168,503,155.29 2,009,095,792.43
Export 3,138,094,320.01 298,350,052,314.62 3,141,412,412.63 2,910,486,178.03
Total 19,001,469,281.90 1,806,538,866,012.00 19,003,107,192.07 17,734,906,477.81
(5) Revenue from top five customers
In RMB
Percentage in total
Name of clients Total turnover turnover of the
Company %
Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd. 3,860,957,084.29 17.85%
Shanghai Bengang Metallurgy Tech. Ltd. 1,075,068,900.67 4.97%
Yantai Bengang Steel Sales Ltd. 580,585,225.87 2.68%
Bengang Group Mineral Co., Ltd. 536,092,359.04 2.48%
Guangzhou Bengang Trade Co., Ltd. 411,171,073.97 1.9%
Total 6,463,874,643.84 29.88%
Statement on revenue.
None
5. Investment income
(1) Details of investment gains
In RMB
Items Occurred current term Occurred in previous term
(2) Long-term equity investment gains on cost basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
(3) Long-term equity investment gains on equity basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
157
Bengang Steel Plates Co., Ltd. Interim Report 2013
Remarks on investment gains
None
6. Supplementary data of cash flow statement
In RMB
Supplementary Info. Amount of the Current Term Amount of the Previous Term
1. Net profit adjusted to cash flow of business operation -- --
Net profit 54,430,242.01 9,276,060.51
Fixed asset depreciation, gas and petrol depreciation, production
935,795,925.42 921,648,321.84
goods depreciation
Financial expenses (“-“ for gains) 187,226,665.21 272,421,337.99
Decrease of deferred income tax asset (“-“ for increase) -2,996,831.22
Decrease of inventory (“-“ for increase) -431,950,864.91 131,686,252.88
Decrease of operational receivable items (“-“ for increase) 95,965,349.14 -1,038,576,911.11
Increase of operational payable items (“-“ for decrease) -246,484,501.95 -222,908,907.71
Cash flow generated by business operation, net 591,985,983.70 73,546,154.40
2. Major investment and financing operation not involving with cash -- --
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 2,289,634,347.74 2,450,794,511.87
Less: Initial balance of cash 3,480,999,428.60 3,079,794,798.31
Net increasing of cash and cash equivalents -1,191,365,080.86 -629,000,286.44
XV. Supplementary Information
1. Details of non-recuring gain/loss of the term
In RMB
Items Amount Remarks
Gain/loss from disposal of non-current assets (includes the
-3,168,601.56
recovered part of asset impairment provision already provided)
Gains and losses included in the current period of government
subsidies, excluding those government grants which are closely
3,296,041.75
related to normal business and in line with national policy , or in
accordance with fixed standards or quantities
Gain/loss from debt reorganization 10,876,068.52
Other non-business income and expenditures other than the above 5,649,112.40
158
Bengang Steel Plates Co., Ltd. Interim Report 2013
Less: Influenced amount of income tax 4,163,155.28
Total 12,489,465.83 --
If the company defines those items to recurring gain/loss itmes, which were defined by “Regulations of Information Disclosure of
PLCs, Explaination No.1 - Non-recurring gain/loss” as non-recurring gain/loss, please provide reason here.
[] Applicable; [V] Not applicable
2. Differences of financial data under domestic and international accounting standards
(1) Differences in net profit and net assets under international and domestic standards
In RMB
Net profit attributable to the shareholders of the Net asset attributable to the shareholders of the
listed company listed company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
167,484,002.73 145,181,307.69 15,393,459,199.65 15,280,805,514.53
Standard
Items and amounts adjusted on IAS
(2) Differences in net profit and net assets under overseas and domestic standards
In RMB
Net profit attributable to the shareholders of the Net asset attributable to the shareholders of the
listed company listed company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
167,484,002.73 145,181,307.69 15,393,459,199.65 15,280,805,514.53
Standard
Accounts and amounts adjusted according to overseas accounting standard
None
(3) Remarks on the differences of financial data under overseas and domestic accounting
standards
No difference btween the domestic and international accounting standard.
3. Net income on asset ratio and earning per share
In RMB Yuan
Earnings per share
Weighted average net
Profit of the report period Diluted earnings per
income/asset ratio (%) Basic earnings per share
share
159
Bengang Steel Plates Co., Ltd. Interim Report 2013
Net profit attributable to common shareholders
1.09% 0.05 0.05
of the Company
Net profit attributable to the common owners of
the PLC after deducting of non-recurring 1.01% 0.05 0.05
gains/losses
4. Irregular situation and causes of items in the financial statements
Major items which have changed by 30% or over comparing with the end of 2012 in the
consolidated statements, and causations
I. Balance Sheet Items Rate of Cause of change
change
Monetary capital -33.28% Increase of loan repayment, and decrease
of reserved capital
Prepayments -33.63% Increase of settled prepayment
Engineering goods 325.44% Increase of project goods not delivered
Notes payable 69.23% Increase of payment by notes payable
Tax payable -940.43% Increase of input tax deductible
Interest payable -74.45% Decrease of financial expense to be drawn
in advance due in the period
Dividend payable Execution of dividend plan in July
Long-term borrowings -43.40% Increase of repayment of long-term loans
Special reserves 2535.04% Decrease of usage of special reserves
Major items which have changed by 30% or over comparing with the first half of 2012 in the
consolidated statements, and causations
II. Income Statement Items Rate of Cause of change
change
Asset impairment loss Providing of inventory devalue provision
Administrative expense -31.43% Social security fees of workshop workers
were transferred to production costs
Financial expenses -30.40% Decrease of loan balances, change of
exchange rate, and increase of exchange
gain/loss
Non-operational income 89.52% Gains from debtor reconstruction and
increase of government subsidy
Non-operational expenditure 2098.79% Increase of fixed asset disposal
Income tax expenses -30.81% Decrease of profit from subsidiaries and
deferred taxes
Minor shareholders’ equity -371.51% Increase of losses from holding
subsidiaries
III. Cash Flow Statement Rate of Cause of change
change
160
Bengang Steel Plates Co., Ltd. Interim Report 2013
Tax returned -91.45% Decrease of tax refund
Other cash received from business 49.87% Increase of government subsidies
operation
Taxes paid 70.46% Increase of VAT paid.
Cash paid for construction of fixed assets, -36.21% Decrease of cash paid for purchasing or
intangible assets and other long-term assets construction of fixed assets
Cash to repay debts 60.08% Increase of cash repaid for loans
Cash paid as dividend, profit, or interests -40.21% Decrease of dividend, and execution of
dividend plan in July.
161
Bengang Steel Plates Co., Ltd. Interim Report 2013
Chapter IX. Documents for Reference
1. Financial Statements signed and stamped by the legal representative, CFO, and accounting manager;
2. All of the original copies of documents and announcements that have been published on China Securities Journal, Securities Times,
and Hong Kong Commercial Daily.
162
