Bengang Steel Plates Co., Ltd. Annual Report 2015
Bengang Steel Plates Co., Ltd.
Annual Report 2015
April 2016
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Bengang Steel Plates Co., Ltd. Annual Report 2015
Chapter I. Important Prompts, Table of Contents, and Definitions
The Board of Directors, The Supervisory Committee, the supervisors and the directors of the Company guarantee
that there are no significant omissions, fictitious or misleading statements carried in the Report and we will accept
individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report.
Mr.Zhao Zhongmin, The Company leader, Mr.Han Ge , Chief financial officer and the Mr.Wang Shaoyu, the
person in charge of the accounting department (the person in charge of the accounting )hereby confirm the
authenticity and completeness of the financial report enclosed in this annual report.
All of the directors attended the board meeting on which this report was examined.
The prospective statements contained in the annual report do not constitute any substantial commitment to the
investors. Investors please be aware of the risks attached to investment decisions.
In the fourth chapter of this report---”The Managements Discussion and Analysis--Expectation on the Companys
Future Development”, it describes the risks the company may face in its future operation, so its advised that all
investors should look it up.
This report is prepared both in versions of Chinese and English. The Chinese version shall prevail when there are
any controversial statements in the two versions.
The Company will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the
report period.
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Bengang Steel Plates Co., Ltd. Annual Report 2015
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV.Managements Discussion and analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Administrative structure
X. Financial Report
XI. Documents available for inspection
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Bengang Steel Plates Co., Ltd. Annual Report 2015
Definition
Refers
Terms to be defined Definition
to
Bengang Bancai, Bengang Steel, the Company, Refers
Bengang Steel Plates Co., Ltd.
the Listed Company to
Refers
Bengang Group Bengang Group Co., Ltd.
to
Refers
Bengang Co. Benxi Steel (Group) Co., Ltd.
to
Refers
Liaoning Provincial State-asset Administration Liaoning State-owned Asset Supervisory and Management Committee
to
Refers
SSE Shenzhen Stock Exchange
to
Refers
Bengang Puxiang Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd.
to
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Bengang Steel Plates Co., Ltd. Annual Report 2015
II. Basic Information of the Company and Financial index
Ⅰ.Company Information
Stock ID Bengang Bancai, Bengangban B Stock Code 000761、200761
Stock Exchange Listed in Shenzhen Stock Exchange
Name in Chinese 本钢板材股份有限公司
Chinese abbreviation 本钢板材
English name (If any) BENGANG STEEL PLATES CO.,LTD.
English abbreviation (If any) BSP
Legal representative: Zhao Zhongmin
Reg. Add. No.16, Renmin Road, Pingshan District, Benxi City, Liaoning Province
Post Code 117000
Office address No.16, Renmin Road, Pingshan District, Benxi City, Liaoning Province
Post Code: 117000
Web Address None
Email. bgbc761@126.com
Ⅱ.Contact person and contact manner
Secretary of the Board Representative of Stock Affairs
Name Sun Yanbin Tong Weigang
No.16, Renmin Road, Pingshan District, No.16, Renmin Road, Pingshan District,
Address
Benxi City, Liaoning Province Benxi City, Liaoning Province
Tel. 024-47828860 024-47827003
Fax. 024-47827004 024-47827004
Email. bgbcsyb@126.com bgbc761@126.com
III. Place for information disclosure
Press media for information disclosure China Securities Journal, Securities Times, Hong Kong Commercial Daily
Web address for the annual report as assigned by CSRC. http://www.cninfo.com.cn
Place for inquiry of the annual report Secretary Office of the Board, Bengang Steel Plate Co., Ltd.
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Bengang Steel Plates Co., Ltd. Annual Report 2015
IV. Change of Business Registration
Organization Code 24269024-3
Changes in principal business activities
No change
since listing (if any)
Changes is the controlling shareholder in
No change
the past (is any)
V. Miscellaneous information
CPA hired by the Company
Name of the CPA BDO China Shu Lun Pan Certified Public Accountants LLP
Address of the CPA Address: 4/F 61 Nanjing Rd. East, Huangpu, Shanghai
Name of CPA signed on the
Wu Xue, Zhang Huice
auditors report
Sponsoring institution hired by the Company, which is responsible to overseeing the Companys operation on a
continuous basis:
[] Applicable; [V] Not applicable
Financial consultancy institution hired by the Company, which is responsible to overseeing the Companys
operation on a continuous basis:
[] Applicable; [V] Not applicable
Ⅵ.Summary of Accounting data and Financial index
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to
change of the accounting policy and correction of accounting errors.
√Yes □ No
Changed over last year
2015 2014 2013
（％）
Operating Gross income（RMB） 29,253,638,605.80 41,422,088,025.70 -29.38% 40,329,344,514.29
Net profit attributable to the
shareholders of the listed company -3,293,624,545.17 232,804,820.19 -1,514.76% 275,592,999.75
（RMB）
Net profit after deducting of
non-recurring gain/loss attributable
-3,452,130,239.63 187,126,217.32 -1,944.81% 56,290,264.91
to the shareholders of listed
company（RMB）
Cash flow generated by business
-2,305,005,968.10 2,868,140,094.86 -180.37% 2,687,944,078.48
operation, net（RMB）
Basic earning per -1.050 0.074 -1,518.92% 0.088
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Bengang Steel Plates Co., Ltd. Annual Report 2015
share(RMB/Share)
Diluted gains per
-1.050 0.074 -1,518.92% 0.088
share(RMB/Share)(RMB/Share)
Net asset earning ratio（%） -24.11% 1.52% -25.63% 1.75%
End of Changed over last year
End of 2015 End of 2013
2014 （％）
Gross assets（RMB） 44,461,643,345.33 49,170,603,030.67 -9.58% 43,050,307,324.66
Net assets attributable to
shareholders of the listed company 11,934,100,372.02 15,384,562,323.08 -22.43% 15,308,337,697.63
（RMB）
Ⅶ.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.
√Applicable □ Not applicable
Net profit attributable to the shareholders Net Assets attributable to the
of the listed company shareholders of the listed company
Amount in the Amount in the End of the reporting Beginning of the
reporting period previous period period reporting period
According to CAS -3,293,624,545.17 232,804,820.19 11,934,100,372.02 15,384,562,323.08
Items and amount adjusted according to IAS
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
√Applicable □ Not applicable
□ Applicable √Not applicable
Net profit attributable to the shareholders Net Assets attributable to the
of the listed company shareholders of the listed company
Amount in the End of the reporting End of the reporting Beginning of the
previous period period period reporting period
According to CAS -3,293,624,545.17 232,804,820.19 11,934,100,372.02 15,384,562,323.08
Items and amount adjusted according to IAS
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period.
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Bengang Steel Plates Co., Ltd. Annual Report 2015
3.Accounting data differences between domestic and foreign accounting standards
□ Applicable √Not applicable
Ⅷ.Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating revenue 9,571,892,099.49 6,773,023,061.69 5,018,448,900.24 7,890,274,544.38
Net profit attributable to the
71,707,881.99 56,299,254.27 35,104,914.65 -3,456,736,596.08
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable
52,169,643.70 53,111,615.06 35,098,170.03 -3,592,509,668.42
to the shareholders of listed
company
Net Cash flow generated by
601,173,782.82 -2,479,304,756.71 478,017,027.96 -904,892,022.17
business operation
Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes √No
Ⅸ.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount (2015) Amount (2014) Amount (2013) Notes
Non-current asset disposal
gain/loss(including the write-off part for -2,918,523.73 -3,000,928.56 -12,804,674.19
which assets impairment provision is made)
Govemment subsidy recognized in current
gain and loss(excluding those closely related
136,992,233.61 18,722,224.00 159,439,621.71
to the Companys business and granted
under the states policies)
Gain/loss from commissioned investment or
7,226,589.08 20,845,473.00 12,600,032.95
assets
Gain/loss from debt reorganization 12,200,032.42 5,940,400.95 17,709,392.13
Current net gain/loss of subsidiaries under
same control from beginning of term till 33,226,800.18
date of consolidation
Other non-business income and expenditures 5,644,831.10 5,156,149.77 9,465,980.04
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Bengang Steel Plates Co., Ltd. Annual Report 2015
other than the above
Less: Influenced amount of income tax 639,468.02 710,902.39 -624,726.31
Influence on minority shareholders
1,273,813.90 959,144.29
equity (after tax)
Total 158,505,694.46 45,678,602.87 219,302,734.84 --
For the Companys non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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Bengang Steel Plates Co., Ltd. Annual Report 2015
III. Outline of Company Business
Ⅰ.Main Business the Company is Engaged in During the Report Period
(I). During the reporting period, the main businesses of the company are as followings, iron and steel smelting,
electricity generation, coal chemical industry, special steel profile, railway, import and export trade, research &
development, product sales, etc.,. By introducing the world-advanced equipment technology, the company
upgrades the equipments for main steel business and has basically built up a high-quality steel product base of 60
varies and 7,500-odd specifications. Wherein, high value-added and high-tech products take up more than 85%.
Its leading products, such as automobile surface plate, household appliance, petroleum pipe line, container plate
and boat deck, are widely applied in many fields, including automobile, household appliances, petrochemical
engineering, machine manufacturing, energy transportation, architectural decoration, metal parts, etc., and they
are exported to more than 60 countries and regions.
During the reporting period, the company strengthens its innovation of marketing service, further matures its
system of marketing, research and production, optimizes its regional distribution, stabilizes its distribution channel,
and increases the profits generated from varieties, specifications and in different regions. By comparing the
benchmark price, purchasing at an appropriate time, replacing the variety, adjusting the structure, infomationizing
procurement and other measures, it serves the economic operation. Through a scientific adjustment of production
organization model in different production lines and a guiding orientation of”economic operation, cost-reduction
and profit-increment”, it promotes different working procedures and production to proceed in a stead and smooth
manner, while the quality of economic operation is improving steadily.
During the reporting period, the main performance-driving factors are: it deepens enterprise reform roundly,
integrates energy medium system to establish a main energy plant, achieves a specialized management of energy
medium and economic operation, and the product research institute sets up a broadband salary system which
applies to the R&D staff group and uses ”Responsibility, technology, contribution ans such factors” to participate
in the distribution of salary; it makes clear the guiding ideology, planning target, development principle,
implementation approach, development direction, safeguard measures, etc., of the 13th five-year development plan;
it quickens the construction of major technical improvement projects, cold-rolled high-strength steel project went
into pilot production stage successively, and the 360 square-meter sintering machine is put into use; it improves its
technology research and development system, builds a technological innovation platform, perfects its
technological management system and incessantly enhances its core competitiveness.
During the reporting period, the contents above had no major changes.
(II) During the reporting period, the iron and steel industry the company is has over-excessive productivity,
the overall demand size is shrinking continuously, the market price plunges into a bottom low, the price of rolled
steel drops to a lowest point in recent 20 years, and the whole market is suffering losses; the iron and steel
enterprises are facing a exacerbating environment. Through a deepening reform and management innovation, it
narrows the economic benefit decline extent effectively, and the overall strength of the company maintains above
the middle level in the whole industry.
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Bengang Steel Plates Co., Ltd. Annual Report 2015
Ⅱ.Major Changes in Main Assets
1. Major Changes in Main Assets
Main assets Major changes
On December 31, 2015, the monetary funds were RMB 5140.4805 million, a decrease of
47.51% compared to the beginning balance of the period, which was mainly due to the
Monetary funds
increase of cash payments for the purchasing of fixed assets, intangible assets and other
long-term assets.
On December 31, 2015，the Prepayments were RMB569.852 million, a decrease of
Prepayments 53.91% compared to the beginning balance of the period，Mainly due to the increase of
the settlement of goods payment in advance in the current period
On December 31, 2015，the Interest receivable were RMB 3.52 million , a decrease of
Interest receivable
49.73%，Mainly due to the decrease of the certificates of deposit in the current period.
On December 31, 2015，the other account receivable were RMB151.6689 million , a
Other account receivable decrease of 41.15% compared to the beginning balance of the period，Due to the increase
of the recovery of the accounts receivable in the current period.
On December 31, 2015，the Engineering material were RMB 4.1529 million ， decrease
Engineering material of 95.4% compared to the beginning balance of the period，Due to the increase in the
occupied use of the project materials in the current period.
On December 31, 2015，the Deferred income tax asset were RMB641.9311 million, a
Deferred income tax asset increase of 253.69%% compared to the beginning balance of the period，Due to the
deferred deductible loss in the current period.
2. Main Conditions of Overseas Assets
□ Applicable √Not applicable
Ⅲ.Analysis On core Competitiveness
By focusing on ”innovation-driving” orientation, the company puts more emphasis on variety R&D and
structural adjustment, improves its technological R&D system, builds a technological innovation platform,
perfects its technological management system and incessantly enhances its core competitiveness.
1. Reinforce the efforts on new product R&D. Intensify new product R&D, accelerate structural adjustment
and product upgrading, research and develop 111 new products, including ultrahigh strength stamp steel(PH1500),
high-strength wheel steel(RS590), gear steel(21NiCrMo5H), high-vanadium centrifugal roller and other products.
Wherein, high value-added products take up more than 85%, thus its product structure is becoming streamlined
and high-end. It has 35 various kinds of product certifications. 23 products can be supplied in bulk, while 7
products has passed the certifications by international well-known enterprises, such as GM and Toyta.
2. Actively conduct ”early involvement of strategic products”. With the construction of the third cold rolling
factory as an opportunity, the company sets up special work team for tasks, such SMS technology, third cold
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Bengang Steel Plates Co., Ltd. Annual Report 2015
rolling quality execution system and PetroChina, Sinopec pipeline engineering, etc. By applying an ”early
involvement” of high-end automobile steel, household steel, pipeline steel and other strategic products, it ensures
the systematicness and consistency of R&D relationship for major steel varieties, thus remarkably improving the
efficiency of market development, scientific exploration and contract execution.
3. Accelerate the construction of industry chain-like technological innovation platform. ”Liaoning
Automobile Steel Industry Technology Innovation Platform” is advancing now. ”Benxi Steel-Brillance-Dongbei
University United Laboratory for auto steel” has officially been listed and went into operation. ”National and
Regional United Engineering Laboratory for Advanced Auto Steel Development and Application Technology”
has been upgraded to National Auto Plate engineering laboratory.
4. Strengthen the innovation of the supporting technology for R&D team construction. Replying on
academician, expert workstations and post-doctoral R&D workstations, it focuses on national industrial
revitalization planning, reinforces key, frontier and fundamental researches and R&D of new materials, and
provides high-level external intellectual support.to enhance the product R&D and innovation ability, it further
consolidates the internal R&D system construction that is centered on product R&D institute, additionally
increases the construction of advanced high-strength product research institute, auto surface technology research
institute, user service technology institute, cold rolling (plating) product technology research institute, etc., further
refines the varieties of R&D, undertakes to develop high-end steel product and advanced steel manufacture
technology and improve the market competitiveness of products.
IV. Management’s Discussion and Analysis
Ⅰ.General
During the reporting period, the macroeconomic growth of china had been continuously slowing,
so the business situation of the steel industry was very grim, that the entire industry had a large
extent of loss, and the steel plates companies were faced with unprecedented challenges. The total
production of pig iron in the year was 9.46 million tons,raw steel of 9.33 million tons, hot-rolled
plated was 11.09 million tons, Cool-rolled plates 3.52 million tons , and special steel 680 thousand
tons.Reviewing the work of the year, the company mainly focused on the following aspects:
1 . Enhanced the innovation of sales service, and the syntheses system of sales-R&D-production was
further improved. The company persisted on the market-oriented strategy, focused on the efficiency,
actively explored the market, increased the intensity to adjust the products structure, made
innovations to the sales management mode, comprehensively explored and expanded the sales
channel. Optimized the regional layout, striving to increase the product categories and the scale
proportion of products which have profits, so as to adapt the market and meet customers
requirements.
2. Implemented the delicacy management of the costs and comprehensively dug the potentials and
increased the efficiency to reduce costs. Adhered to the principle of maximizing economic benefits,
optimized procurement strategy and made innovations of production organization mode. Par with
the domestic and foreign advanced steel enterprises, actively carried out the work of tapping
potential of the key processes, pushed forward the costs control ability to further continuously
enhanced.
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Bengang Steel Plates Co., Ltd. Annual Report 2015
3. Scientifically and efficiently organized the production, the operation level of the production line
was further stably enhanced. Focused on the economic operation and reduce costs by increasing
efficiency, scientifically adjusted the organization mode of each production line, promoted the
stable and smooth operation of each production line, thus the quality of the economic operation was
steadily enhanced.
4. Adhered to making innovations for driving source, and the ability of making innovations and
enhancing efficiency on the products was significantly improved. Sparing no efforts to carry out the
R&D of the products, the product certification and the key technology breakthrough, actively
sought the national policy, deepened the external cooperation, promoted the construction of the
R&D platform and effectively raised the ability and the level of making technology innovations
transferred into proceeds.
5. Efficiently implemented the transformation of the equipments, and continuously optimized the
development layout of the companys strategy. Strictly controlled the investment in fixed assets and
soundly and effectively carried out the optimization and transformation and upgrading of the key
equipments. Based on the adjustment of the product structure, raised the products grade and
impelled the energy conservation and emission reduction, so the energy projects and key
energy-saving projects achieved remarkable results.
6. Strengthened the main body responsibility of safety and soundly improved the level of safety
management in production. Comprehensively implemented the requirement of safety production as”
Same responsibility for party and managing, dual responsibility of one post, jointly supervising and
managing”, so as to strength the responsibility system of safety production. Comprehensively
implemented the special inspection of the safety production, the overhaul of hidden hazards and so
forth fundamental works, thus the company realized the goal of “Zero Accident” on big personnel
accident, big fire accident and big equipment accident.
7. Implemented according to the environmental laws and regulations, the ecological civilization
construction had achieved remarkable results. Fully implemented by conforming to the Law of
Environmental Protection and the new standard of pollutant emission, greatly promoted the
implementation of key environmental protection projects, actively carried out the comprehensive
managing of the factory environments and fully completed the goal of pollutant emission reduction
and the blue-sky project of the "Twelfth Five Year Plan".
8. Comprehensively deepened the enterprise reform and constantly consolidated the fundamental
management of the company. Constantly optimized the institution and the mechanism on
organization structure set-up, process improvement, adjustment of internal organization and so forth
aspects, thus effectively improved and smoothed the management structure and raised the efficiency
of the management. The company raised the operation efficiency by means of resources integration
and organization structure optimization and so forth measures.
Ⅱ.Main business analysis
1. General
Change over
Same period last
This report term same period last Cause of change
year
year
Turnover 29,253,638,605.80 41,422,088,025.70 -29.38%
Operation cost 29,811,895,016.85 38,489,119,026.43 -22.54
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Bengang Steel Plates Co., Ltd. Annual Report 2015
Sales expense 919,110,499.37 863,079,137.09 6.49
Administrative expense 733,933,299.88 899,624,299.29 -18.42
Financial expenses 1,063,317,455.47 717,292,853.39 48.24% Increase of exchange loss
Due to the increase of cash payments for the
Cash flow generated by -4， purchasing of fixed assets, intangible assets
4，874，611，555.66 -196.71%
business operation, net 714,249,257.09 and other long-term assets in the current
period.
2. Revenue and cost
(1)Component of Business Income
In RMB
2015 2014
Increase /decrease
Amount Proportion Amount Proportion
Total operating
29,253,638,605.80 100% 41,422,088,025.70 100% -29.38%
revenue
Industry
Steel rolling business 29,253,638,605.80 100.00% 41,422,088,025.70 100.00% -29.38%
Products
Steel plate 27,063,270,882.63 92.51% 37,864,959,678.06 91.41% 1.10%
Steel billet 10,347,159.33 0.02% -0.02%
Other 2,190,367,723.17 7.49% 3,546,781,188.31 8.56% -1.08%
Area
Northeast 9,803,296,279.78 33.51% 12,713,075,400.88 30.69% 2.82%
North 2,250,800,509.79 7.69% 4,280,717,411.13 10.33% -2.64%
East 8,734,382,778.07 29.86% 12,613,036,561.55 30.45% -0.59%
Northwest 11,624,769.33 0.04% 20,892,279.00 0.05% -0.01%
Southwest 24,550,759.64 0.08% 42,004,974.77 0.10% -0.02%
Mid-south 46,760,817.03 0.16% 1,062,573,192.15 2.57% -2.41%
Export 8,382,222,692.16 28.65% 10,689,788,206.22 25.81% 2.85%
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating
Profit with Profit over 10%
□Applicable □Not applicable
In RMB
(3)Whether the Company’s Physical Sales Income Exceeded Service Income
√ Yes □ No
Categories Items Unit 2015 2014 Change over same
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Bengang Steel Plates Co., Ltd. Annual Report 2015
period last year
Sales Ton 11,610,741.31 12,343,978.13 -5.94%
Steel rolling business Output Ton 11,597,504.49 12,639,120.5 -8.24%
Inventory Ton 786,842.86 800,079.68 -1.65%
Explanation for a year-on –year change of over 30%
□Applicable √Not applicable
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
□ Applicable √Not applicable
(5)Component of business cost
Industry and product classification
In RMB
2015 2014
Proportion in the Proportion in the Increase/Decrease
Industry Items
Amount operating costs Amount operating costs (%)
(%) (%)
Steel rolling 12,942,748,210.3 17,944,675,875.3
Raw materials 43.41% 46.62% -2.32%
business 9 7
Steel rolling Auxiliary
1,499,459,834.85 5.03% 1,894,098,710.57 4.92% 0.08%
business material
Steel rolling Spare parts and
400,614,031.86 1.34% 506,123,592.75 1.31% 0.02%
business tools
Steel rolling
Fuel 7,709,142,042.53 25.86% 9,743,040,776.86 25.31% 0.82%
business
Steel rolling
Power 2,729,440,767.73 9.16% 2,985,488,175.62 7.76% 1.38%
business
Steel rolling
Wage and welfare 1,808,829,930.51 6.07% 2,029,415,195.35 5.27% 0.38%
business
Steel rolling
Depreciation 1,824,882,394.51 6.12% 1,998,507,273.26 5.19% 0.22%
business
Steel rolling
Others 896,777,804.48 3.01% 1,387,769,426.66 3.61% -0.59%
business
Steel rolling 29,811,895,016.8 38,489,119,026.4
Total 100.00% 100.00% 0.00%
business 5 4
Notes
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
√Yes □ No
The scope of the consolidated financial statements of the current period has been added the newly
established subsidiaries of Benxi Bengang Steel Sales Co., Ltd and Shenyang Bengang
Metallurgy Technology Co., Ltd.
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Bengang Steel Plates Co., Ltd. Annual Report 2015
(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the
Company’s Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
Information of the Companys top 5 customers
Total sales amount to top 5 customers (RMB) 3,366,288,172.64
Proportion of sales to top 5 customers in the
11.51%
annual sales(%)
Information about the top 5 suppliers
No Name Amount9RMB) Pr
1 Hangzhou Hot Joint (Hongkang) Co., Ltd. 975,097,271.75 3.33%
2 Bengang Group Mineral Co., Ltd. 857,712,417.33 2.93%
3 Liaoning Benxi Iron & steel Trade Co., Ltd. 587,660,157.07 2.01%
Benxi Iron & Steel (Group) steel
4 479,903,850.06 1.64%
processingand distribution Co., Ltd.
5 Hengxing International Resources Co., Ltd. 465,914,476.43 1.59%
Total -- 3,366,288,172.64 11.51%
Other Notes:
□ Applicable √Not applicable
Principal suppliers
Total purchase of top 5 Suppliers（RMB） 13,265,340,262.95
Percentage of total purchase of top 5 suppliers In total
44.50%
annual purchase(%)
Information about the top 5 suppliers
No Name Amount（RMB） Proportion
Benxi Beiying Steel & Iron (Group) Co.,
1 4,864,114,258.45 16.32%
Ltd.
2 Bengang Group Mineral Co., Ltd. 3,555,038,605.53 11.92%
Liaoning Power Supply Co., Ltd. Benxi
3 2,272,870,547.82 7.62%
Branch
Heilongjiang Longmei Minning Group
4 2,066,833,891.89 6.93%
Co., Ltd.
5 Jiaozuo Guolong Logistics Co., Ltd. 506,482,959.26 1.70%
Total -- 13,265,340,262.95 44.50%
Other notes :
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Bengang Steel Plates Co., Ltd. Annual Report 2015
□ Applicable √Not applicable
3.Expenses
In RMB
Increase/Decrea
2015 2014 Notes
se(%)
Sale expenses 919,110,499.37 863,079,137.09 6.49%
Administration
733,933,299.88 899,624,299.29 -18.42%
expenses
Financial expenses Due to the increase of exchange loss
1,063,317,455.47 717,292,853.39 48.24% caused by the devaluation of RMB in
the current period.
4.R& D Expenses
√Applicable □Not applicable
Situation of Research and Development Input by the Company
2015 2014 Increase/Decrease(%)
Number of Research and
1,502 1,571 -4.39%
Development persons (persons)
Proportion of Research and
6.98% 6.95% 0.03%
Development persons
Amount of Research and
Development Investment (In 1,531,589,000.00 2,550,780,000.00 -39.96%
RMB)
Proportion of Research and
5.24% 6.16% -0.92%
Development Investment
Amount of Capitalization
Research and Development
0.00 0.00 0.00%
Investment of Research and
Development Investment
Proportion of Capitalization
Research and Development
0.00% 0.00% 0.00%
Investment of Research and
Development Investment
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
√Applicable □Not applicable
Explanation of the Reason for Substantial Changes in the Research and Development Inputs Capitalization Rate
17
Bengang Steel Plates Co., Ltd. Annual Report 2015
and Its Reasonableness
□ Applicable √ Not applicable
5.Cash Flow
In RMB
Items 2015 2014 Increase/Decrease(%)
Subtotal of cash inflow received
24,571,589,646.08 27,563,063,923.62 -10.85%
from operation activities
Subtotal of cash outflow
received from operation 26,876,595,614.18 24,694,923,828.76 8.83%
activities
Net cash flow arising from
-2,305,005,968.10 2,868,140,094.86 -180.37%
operating activities
Subtotal of cash inflow received
1,775,980,060.32 8,239,533,447.80 -78.45%
from investing activities
Subtotal of cash outflow for
5,219,745,508.10 8,326,807,425.53 -37.31%
investment activities
Net cash flow arising from
-3,443,765,447.78 -87,273,977.73 3,845.92%
investment activities
Subtotal cash inflow received
27,146,081,641.78 20,842,507,551.86 30.24%
from financing activities
Subtotal cash outflow for
26,180,913,966.24 18,728,415,564.97 39.79%
financing activities
Net cash flow arising from
965,167,675.54 2,114,091,986.89 -54.35%
financing activities
Net increase in cash and cash
-4,714,251,257.09 4,874,611,555.66 -196.71%
equivalents
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
(1) Net cash flow arising from operating activities has increased by 94.79% in the period than that of last year.
The main reason was the decrease in cash received in the sale of goods and the rendering of service in the current
period.
（2）Subtotal of Cash inflow received from investing activities decreased by 78.45% in the period than that of last
year, The main reason was the decrease of the purchase of bank financial products in the current period.
（3）Subtotal of cash outflow for investment activities decreased by 37.72%% in the period than that of last
year,The main reason was the decrease of the purchase of bank financial products in the current period.
（4）Net cash flow arising from investment activities increased by 3807.22%% in the period than that of last year,
The main reason was the increase of cash payments for the purchasing of fixed assets, intangible assets and other
18
Bengang Steel Plates Co., Ltd. Annual Report 2015
long-term assets in the current period
（5）Subtotal cash inflow received from financing activities increased by 30.24% in the period than that of last
year The main reason was the increase in cash received from the financing activities in the current period
（6）Subtotal cash outflow for financing activities increased by 39.51% in the period than that of last year.，The
main reason was the increase of loan repayment in the current period
（7）Net cash flow arising from financing activities decreased by 51.85% in the period than that of last year，The
main reason was the increase of loan repayment in the current period
（8）Net increase in cash and cash equivalents decreased by196.71% in the period than that of last year.，The main
reason was that the cash payments for the purchasing of fixed assets, intangible assets and other long-term assets
increased and the net borrowing decreased in the current period compared with the last year.
Notes to the big difference between cash flow from operating activities and net profit in the reporting year
□Applicable √Not applicable
Ⅲ.Analysis of Non-core Business
√ Applicable □Not applicable
Proportion in total
Amount Explanation of cause Sustainable (yes or no)
profit
Investment incme 7,226,589.08 -0.20% Foreign financial revenue Yes
Impairment of
514,276,448.24 -13.97% Inventor depreciation No
assets
Non-operating
176,054,356.57 0.60%
income
Non-operating
24,135,783.17 0.08%
expenses
Ⅳ.Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2015 End of 2014 Proportio
Proportion in Proportion in n
Notes to the significant change
Amount the total Amount the total increase/d
assets(%) assets(%) ecrease
5,140,480,509. 9,792,940,409.
Monetary fund 11.56% 19.92% -8.36%
97 40
Accounts 488,584,624.7
1.10% 487,767,042.22 0.99% 0.11%
receivable 2
8,601,734,442. 11,008,413,817
Inventories 19.35% 22.39% -3.04%
42 .92
19
Bengang Steel Plates Co., Ltd. Annual Report 2015
20,046,254,72 17,144,282,253
Fixed assets 45.09% 34.87% 10.22%
6.74 .99
Construction 5,646,624,293. 6,126,175,722.
12.70% 12.46% 0.24%
inprocess 27 67
18,139,885,59 18,187,945,675
Short-term loans 40.80% 36.99% 3.81%
6.60 .93
1,005,919,974.
Long-term loans 2.26% 814,627,465.85 1.66% 0.60%
09
2.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
Ⅴ.Investment situation
1. General
□Applicable √Not applicable
2.Condition of Acquiring Significant Share Right Investment during the Report Period
□Applicable √Not applicable
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment
□ Applicable √ Not applicable
（2）Investment in Derivatives
□ Applicable √ Not applicable
5.Application of the raised capital
□ Applicable √ Not applicable
20
Bengang Steel Plates Co., Ltd. Annual Report 2015
Ⅵ.Significant Asset and Right Offering
1.Situation of Significant Asset Sale
□ Applicable √ Not applicable
2.Situation of Substantial Stake Sale
□ Applicable √ Not applicable
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
√Applicable □Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Company Sectors Registered Operating
Company type Total assets Net assets Turnover Net Profit
Name engaged in capital profit
Guangzhou
Bengang 184,322,884. 65,978,274.0 1,026,913,19 15,327,601.4 11,443,214.3
Subsidiaries Sales of steel 1,000,000.00
Trade Co., 81 9 4.98 6 2
Ltd.
Shanghai
Bengang 19,200,000.0 524,564,395. 142,197,800. 2,830,209,44 42,075,917.6 31,504,168.9
Subsidiaries Sales of steel
Metallurgy 0 13 76 1.59 2 1
Tech. Ltd.
Bengang
Steel Plate
Production of 10,000,000.0 704,270,149. 643,218,003. 247,265,566.
Liaoyang Subsidiaries 662,331.08 474,453.21
pellet 0 68 20 19
Orel Ball
Co., Ltd.
Dalian
Benruitong
Processing
Automobile 100,000,000. 360,429,186. 83,562,219.2 353,756,953. -13,876,589. -13,663,448.
Subsidiaries and sales of
Material 00 21 9 63 80 71
steel
Technologies
Co., Ltd.
Bengang
Processing
Puxiang Cool 1,920,000,00 4,035,223,21 1,902,985,09 5,242,586,23 229,911,403. 229,913,579.
Rolling Steel Subsidiaries and sales of
Sheet Co., 0.00 3.72 0.80 7.97 35 94
steel
Ltd.
Changchun
86,204,135.8 13,723,478.5 500,145,430.
Bengang Subsidiaries Sales of steel 500,000.00 3,773,373.02 2,810,282.53
1 4 88
Steel Sales
21
Bengang Steel Plates Co., Ltd. Annual Report 2015
Ltd.
Haerbin
Bengang 26,460,248.1 236,502,953.
Subsidiaries Sales of steel 500,000.00 762,376.17 -552,833.37 -41,451.06
International 7 93
Trading Ltd.
Nanjing
Bengang
48,862,979.8 30,434,990.2 89,207,437.9
Steel Subsidiaries Sales of steel 1,150,000.00 1,391,811.18 1,043,274.68
4 5 3
Material
Sales Ltd.
Wuxi
Bengang 111,644,855. 16,884,108.8 726,240,323.
Subsidiaries Sales of steel 1,000,000.00 7,053,734.40 5,771,805.27
Steel Sales 82 7 25
Ltd.
Xiamen
Bengang 24,638,101.9 14,496,840.1 35,991,389.0
Subsidiaries Sales of steel 500,000.00 307,356.25 1,616,300.49
Steel Sales 1 1 4
Ltd.
Yantai
Bengang 231,927,467. 74,934,212.2 1,074,336,95 -2,630,634.1 -2,530,545.9
Subsidiaries Sales of steel 500,000.00
Steel Sales 00 1 9.68 8 8
Ltd.
Tianjin
Bengang 80,539,126.8 12,155,784.5 396,148,054. -29,707,169. -29,705,097.
Subsidiaries Sales of steel 3,000,000.00
Steel Trading 5 6 47 06 04
Ltd.
Shenyang
Benxi Steel
Metallurgy Subsidiaries Sales of steel 5,000,000.00 5,001,708.33 5,001,281.25 1,708.33 1,281.25
Technology
Co., Ltd.
Bengang
Steel Sales Subsidiaries Sales of steel 5,000,000.00 5,001,056.57 5,000,792.43 1,056.57 792.43
Ltd.
Suzhou
Bengang Shareholding 20,000,000.0 43,180,021.0 20,039,616.7 278,913,744.
Sales of steel 88,592.66 70,819.03
Industrial company 0 5 5 03
Co., Ltd.
China Steel
Shanghai 89,042,954.0 596,568,911. 713,850,328. -97,083,132. -96,927,543.
Shareholding
Steel Sales of steel 8,356,659.31
company 0 14 65 03 89
Processing
Co., Ltd.
Zhejiang
Bengang 10,000,000.0 87,895,508.4 12,099,554.7 161,238,377.
Shareholding
Jingrui Steel Sales of steel 671,871.63 633,849.34
company 0 6 9 43
Processing
Ltd.
Acquirement and disposal of subsidiaries in the Reporting period
□ Applicable √ Not applicable
Notes
22
Bengang Steel Plates Co., Ltd. Annual Report 2015
Ⅷ.Special purpose vehicle controlled by the Company
□ Applicable √ Not applicable
Ⅸ.Prospect for future development of the Company
1. The Development Trend of the Industry
The year 2016 will be a key year for the Steel Plates Companies to speed up the structure
adjustment and upgrading while adhering to innovations for the driving source. The company still
faces continuous grim operation situation. There are fierce competitions of the industry and the
overall price of the steel will still remain low, thus the phenomenon of “Inverted” price that the
costs is higher than the sales price will be hardly turn around in a short period, since the pollutant
emission standard of the steel industry largely increased and the environmental protection
continuously remained in a high-pressure situation, the companies of steel industry will continue the
situation of loss at operation in a severer circumstance. At the same time, what we should see is the
projects under the national strategy of “One belt and one road”, reinvigorating the old industrial
base in northeast and the projects in the international capacity cooperation, which will significantly
expand the development space of the steel industry. In recent years, the company relied on
deepening the reform and innovation, actively seeking strategic breakthrough, thus the company
effectively elevated its competitive advantage in the steel industry chain.
2.The companys development strategy
The overall work routes of the company in 2016 was established as: deeply promoting the
strategic transformation, strengthening the innovations for drive source and sparing no efforts to
ensure the stable and smooth production operation to achieve sustained improvement on economic
benefits.
3. Business plan
Production: pig iron 10.05 million tons, raw steel 9.64 million tons, hot-rolled plate 9.07 million tons, cool-rolled plates 4.46
coil steel 36000 tons. The business plan does not constitute a commitment
thousand tons, 5%. Stainless
of the company, so please be aware of the risks arising from such item, and the investors should
understand the differences between a business plan and the commitment of performance.
In order to achieve the above-said goal, the company must try best to do the following key works:
the first is to deepen the reform of the sales service mode, so as to improve product profitability; the
second is to comprehensively enhance the operation quality and strongly implement the cost
reduction by improving efficiency; the third is to adhere to the innovation-driving development
strategy, so as to enhance the high-end products proportion; the fourth is to continuously promote
the comprehensive reform and constantly enhance the vitality of enterprises; the fifth is to speed up
the construction of environmental management system and strengthen the concept of green
development; the sixth is to constantly improve security management system, so as to ensure the
smooth and steady operation of the production; the seventh is to build the development atmosphere
of overcoming the hard times by joint efforts, so as to shape the converging force of sound
management and pragmatic operation.
4. Maintaining the current business and completing the required capital arrangements of invested
23
Bengang Steel Plates Co., Ltd. Annual Report 2015
projects under construction.
The company will use its own funds and the bank loans to meet the funds demand required by the production and
operation and the technical transformation.
(5) Potential risks
1. Industry risk
The Domestic iron and steel industry has serious overcapacity, while the downstream
demand couldn’t be ameliorated in a short term, thus the situation of the oversupply in the
iron and steel could be hardly turn around. The main countries which import iron and steel
from China have constantly launched the anti-dumping investigation, which leads to a
grimmer situation for exporting the iron and steel, thus further increased the burden on the
domestic market. The state of iron and steel enterprises running in a low efficiency will
become the industry normal for a long time.
Countermeasures: The company will adhere to the market-oriented and focus on needs
from the customers, actively develop the market, optimize regional layout, deepen the reform
of the marketing service mode, strive to raise the proportion on the products having profits
and the high-end products, improve the product efficiency; further strengthen the
management, strength the costs-reduction by improving efficiency and continuously raise the
company’s efficiency and the market competiveness under the new normal.
2. Operating risk
Due to the overall economic growth in China will slow down for a comparatively long time
in the future, the demand in the downstream industries such as real estate, machinery, home
appliances will be weakened, the overall price of the iron and steel prices will remain at a low
level, which will weaken the profitability of the iron and steel enterprises, further leads to a
lack of self-funds source for the company; the country adopts credit restriction for the
over-capacity industries such as the iron and steel industry, thus the financial strain and the
financing difficulty will become the common problem for the iron and steel enterprises, which
would make the iron and steel enterprises facing the operating risk on funds.
Countermeasures: strengthen the management and control of the capital budget, strictly
implement the cash budget; reduce the inventory funds occupancy, strengthen the
management of the capital cost and strictly control the expenses; expand the financing
channels, standardize the operation ability of the listed company, raise the company’s control
ability on the capital market and its influence. Insist on promoting the company to realize the
modernization on the governance concept and governance capacity, and promote the
re-financing on the capital market.
3. Environmental risk
With the implementation of the new Environmental Protection Law, new emissions
standards and other relevant laws and regulations, the government regulation and
enforcement is becoming increasingly strict, which further raised the requirements on
environmental protection for enterprises, largely raised the pollutant emission standards for
the iron and steel industry, and the environmental protection continues to maintain a high
pressure situation, thus the iron and steel enterprises face great pressure on environmental
protection.
24
Bengang Steel Plates Co., Ltd. Annual Report 2015
Countermeasures: according to the requirements of the new environmental protection
standards, the company fully carries out the implementation on the transformation of projects
for improvement. Based on the transformation for better environmental protection, dig the
potential of reducing the emission and soundly execute the emission-reducing measures on
pollution factors. Strengthen the control on the pollution source, implement the
environmental-protection management responsibility, carry out the real-time monitoring for
the company’s status on the environmental protection and strictly supervise the operation of
environmental protection facilities
Ⅹ.Particulars about researches, visits and interviews received in this reporting period
1.Particulars about researches, visits and interviews received in this reporting period
√ Applicable □ Not applicable
Reception time Way of reception Types of visitors Basic index
To know more about the situation
June 10,2015 Onsite investigation Organization
Production and operation
To know more about the situation
August 27,2015 Onsite investigation Organization
Production and operation
Reception times 2
Reception agency amount 5
Reception personal number 0
Others 0
Whether to disclose, reveal or disclose non-public
No
material information
25
Bengang Steel Plates Co., Ltd. Annual Report 2015
V. Important Events
ⅠSpecification of profit distribution of common shares and capitalizing of common reserves
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash
dividend policy during the reporting period
□ Applicable √ Not applicable
The profit distribution preplan or proposal and the preplan or proposal of conversion of the capital reserve into
share capital in the past three years(with the reporting period inclusive):
1,Dividend preplan of 2015
As audited by Shulun Pan Certified Public Accountants Co., Ltd., The 2015 annual realized net profits attributable to the parent
company was RMB -3,293,624,545.17, plus the retained profit of RMB 2,172,180,473.24 at beginning of year, and deduct
RMB156,800,000.00 of dividend distributed for the previous year, The Balance of undistributed profit is -1,278,244,071.93 and the
2015 annual profits distribution plan was: due to the company recorded a loss in 2015, according to the relevant Chinese regulations
and laws and the company's Articles of Association, the company will not draw the surplus reserve. The company will not carry out
profits distribution of year 2015 and will not carry out increasing capital by converting the reserve.
2. Dividend plan of 2014
As audited by Shulun Pan Certified Public Accountants Co., Ltd., the net profit of the year 2014 was RMB232,804,820.19, after
providing of 10% statutory surplus reserves of RMB4,411,426.11, plus the retained profit of RMB 2,100,587,079.16 at beginning of
year, and deduct RMB156,800,000.00 of dividend distributed for the previous year, the profit distributable to the shareholders is
RMB2,172,180,473.24.
The dividend plan for year 2014 is: upon the total capital shares amounted to 3,136,000,000 shares at December 31st 2014, RMB0.5
(tax included) of dividend will be distributed upon each 10 shares to the whole shareholders. The dividend for common shares is
totaled to RMB156,800,000.00 this time. The remaining RMB2,016,529,239.22 will be carried over to the next fiscal year. This plan
is subject to approval of the Shareholders Annual Meeting 2014.
2. Dividend plan of year 2013
As audited by Shulun Pan Certified Public Accountants Co., Ltd., the net profit of the year 2013 was RMB275,592,999.75, after
providing of 10% statutory surplus reserves of RMB22,649,063.39, plus the retained profit of RMB1,910,363,142.80 at beginning
of year, and deduct RMB62,720,000 of dividend distributed for the previous year, the profit distributable to the shareholders is
RMB2,100,587,079.16.
The dividend plan for year 2013 was: upon the total capital shares amounted to 3,136,000,000 shares at December 31st 2013,
RMB0.5 (tax included) of dividend will be distributed upon each 10 shares to the whole shareholders. The dividend for common
shares is totaled to RMB156,800,000.00 this time. The balance of RMB1,943,787,079.16 was carried over to the next fiscal year.
Dividend distribution of the latest three years
In RMB
Net profit
Ratio in net profit
attributable to the Amount of cash Proportion of cash
attributable to the
Cash dividend over of the parent dividends from cash dividends from cash
Year parent company in
(Including Tax) company in the offer to repurchase offer to repurchase
the consolidated
consolidated shares of the funds shares of the funds
financial statements
financial statements
26
Bengang Steel Plates Co., Ltd. Annual Report 2015
2015 0.00 -3,293,624,545.17 0.00%
2014 156,800,000.00 232,804,820.19 67.35%
2013 156,800,000.00 275,592,999.75 56.90%
In the reporting period, both the Companys profit and the parent companys retained earnings were positive
however not cash dividend distribution proposal has been put forward.
□ Applicable √ Not applicable
II.Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the
report period.
III.Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,
senior management personnel and other related parities.
□ Applicable √ Not applicable
During the reporting period, there is no commitment that the company, shareholders, actual controller, offeror,
directors, supervisors, senior management or other related parties have fulfilled during the reporting period and
have not yet fulfilled by the end of reporting period.
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still
in the forecast period, the company has assets or projects meet the original profit forecast made and the
reasons explained
□Applicable √ Not applicable
IV.Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
There are no controlling shareholder and its related parties occupying non-business capital of the listed company
in Period
27
Bengang Steel Plates Co., Ltd. Annual Report 2015
V.Explanation of the Supervisory Committee and Independent Directors (If applicable)on the Qualified
Auditor’s Report Issued by the CPAs.
□ Applicable √ Not applicable
VI.Explain change of the accounting policy, accounting estimate and measurement methods as compared
with the financial reporting of last year.
□ Applicable √ Not applicable
No particulars about the changes in aspect of accounting polcy, estimates or calculation method in the period.
VII.Explain retrospective restatement due to correction of significant accounting errors in the reporting
period
□Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the
period.
VIII.Explain change of the consolidation scope as compared with the financial reporting of last year.
□Applicable √ Not applicable
The scope of the consolidated financial statements of the current period has been added the
newly established subsidiaries of Benxi Bengang Steel Sales Co., Ltd and Shenyang Bengang
Steel Metallurgy Technology Co., Ltd.
IX. Engagement/Disengagement of CPAs
CPAs currently engaged
Name of the domestic CPAs BDO China Shu Lun Pan Certified Public Accountants LLP
Reward for domestic CPA (RMB0000) 280
Successive years the domestic CPA has been
8
providing service to the Company
Name of CPAs from the domestic CPA firm Wu Xue, Zhang Huice
Title of overseas CPA (if any) None
Reward to overseas CPA (RMB0000) (if any) 0
Number of successive years the overseas CPA has
None
provided service to the Company (if any)
Name of the accoutants assigned by the overseas
None
CPA (if any)
Was the CPA been changed in the report period
[] Yes [V] No
28
Bengang Steel Plates Co., Ltd. Annual Report 2015
Engaging of CPA for internal auditing, financial consultants or sponsors
[V] Applicable [ ]Not applicable
The Company employs BDO China Shu Lun Pan Certified Public Accountants LLP as the auditor of internal control system with
auditing fee of RMB600 thousand.
X.Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly Report
□Applicable √ Not applicable
XI.Bankruptcy reorganization
□Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period.
XII.Significant lawsuits and arbitrations of the Company
□Applicable √ Not applicable
No significant lawsuits and arbitrations occourred in the reporting period.
XIII.Situation of Punishment and Rectification
□Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XIV.Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
√Applicable□Not applicable
During reporting period, there was no effective judgment of a court and large amount of debt maturity that the
company, its controlling shareholders and actual controller failed to perform or pay off.
XV.Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or
Other Employee Incentive Measures
□Applicable √ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other
employee incentives that have not been implemented.
XVI.Material related transactions
1. Related transactions in connection with daily operation
√Applicable □ Not applicable
29
Bengang Steel Plates Co., Ltd. Annual Report 2015
Whethe
Trading r over
Principl
limit the Market Index
Subjects e of
Amount price of of
of the pricing Ratio in approve approve Way of Date of
Related Relations Type of Price of of trade similar informa
related the similar paymen disclosu
parties hip trade trade RMB0 trade tion
transacti related trades d d t re
000 availabl disclos
ons transacti
e ure
ons （RMB limited
0000） or not
(Y/N)
Execute
accordi
Benxi Steel Parent Purchase Related
of goods Maintainin Agreem 15,699. ng to
(Group) Co., Compan and g agreeme 5.27% No No
services
ent 59 the
Ltd. y nt price
agreeme
nt
Execute
Purchase accordi
Benxi Steel Related
Parent of goods Agreem ng to
(Group) Co., Land rent agreeme 5,742.6 1.93% No No
Company and ent the
Ltd. nt price
services agreeme
nt
Execute
Bengang
Purchase accordi
Stainless Related
Same of goods Products Agreem ng to
Cool-rolling agreeme 30.11 0.01% No Yes
controller and in stock ent the
(Dandong) nt price
services agreeme
Co., Ltd.
nt
Execute
Benxi Steel Purchase accordi
Related
(Group) Same of goods Labor Agreem 2,206.6 ng to
service agreeme 0.74% No No
Mining Co., controller and ent 2 the
nt price
Ltd. services agreeme
nt
Execute
Benxi Steel Purchase accordi
Related
(Group) Same of goods Raw Agreem 352,968 118.40 ng to
agreeme No Yes
Mining Co., controller and materials ent .68 % the
nt price
Ltd. services agreeme
nt
Benxi Steel Purchase Related Execute
Same Transporta Agreem
(Group) of goods agreeme 328.55 0.11% No accordi Yes
controller tion ent
Mining Co., and nt price ng to
30
Bengang Steel Plates Co., Ltd. Annual Report 2015
Ltd. services the
agreeme
nt
Execute
Benxi Steel
Purchase accordi
(Group) Related
Same of goods Raw Agreem 11,292. ng to
Metallurgy agreeme 3.79% No No
controller and materials ent 38 the
Residues nt price
services agreeme
Co., Ltd.
nt
Benxi Steel Execute
(Group) Purchase accordi
Related
Steel Process Same of goods Process Agreem ng to
agreeme 235.46 0.08% No No
and controller and fee ent the
nt price
Logistics services agreeme
Co., Ltd. nt
Benxi Steel Execute
(Group) Purchase accordi
Related
Steel Process Same of goods Products Agreem ng to
agreeme 0.00% No Yes
and controller and in stock ent the
nt price
Logistics services agreeme
Co., Ltd. nt
Execute
Benxi Steel
Purchase accordi
(Group) Related
Same of goods Raw Agreem 6,841.8 ng to
Real-estate agreeme 2.30% No Yes
controller and materials ent 9 the
Developmen nt price
services agreeme
t Co., Ltd.
nt
Execute
Benxi Steel Purchase accordi
Related
(Group) Same of goods Agreem 14,345. ng to
Spare parts agreeme 4.81% No Yes
Machinery controller and ent 66 the
nt price
Co., Ltd. services agreeme
nt
Execute
Benxi Steel Purchase accordi
Related
(Group) Same of goods Repairing Agreem 1,705.4 ng to
agreeme 0.57% No No
Machinery controller and services ent 5 the
nt price
Co., Ltd. services agreeme
nt
Benxi Steel Purchase Related Execute
Same Agreem 1,702.9
(Group) of goods Spare parts agreeme 0.57% No accordi No
controller ent 3
Construction and nt price ng to
31
Bengang Steel Plates Co., Ltd. Annual Report 2015
Co., Ltd. services the
agreeme
nt
Execute
Benxi Steel Purchase accordi
Related
(Group) Same of goods Engineerin Agreem 33,274. ng to
agreeme 11.16% No No
Construction controller and g fee ent 63 the
nt price
Co., Ltd. services agreeme
nt
Execute
Benxi Steel Purchase accordi
Related
(Group) Same of goods Repairing Agreem 8,995.7 ng to
agreeme 3.02% No No
Construction controller and services ent 4 the
nt price
Co., Ltd. services agreeme
nt
Execute
Benxi Steel Purchase accordi
Related
(Group) Same of goods Raw Agreem ng to
materials agreeme 996.28 0.33% No No
Construction controller and ent the
nt price
Co., Ltd. services agreeme
nt
Execute
Benxi Steel Purchase accordi
Related
(Group) Same of goods Transporta Agreem ng to
tion agreeme 375.35 0.13% No No
Construction controller and ent the
nt price
Co., Ltd. services agreeme
nt
Execute
Benxi Steel
Purchase accordi
(Group) Related
Same of goods Agreem 4,081.9 ng to
Industrial Spare parts agreeme 1.37% No No
controller and ent 6 the
Developmen nt price
services agreeme
t Co., Ltd.
nt
Execute
Benxi Steel
Purchase accordi
(Group) Related
Same of goods Raw Agreem 19,458. ng to
Industrial agreeme 6.53% No No
controller and materials ent 13 the
Developmen nt price
services agreeme
t Co., Ltd.
nt
Benxi Steel Purchase Related Execute
Same Repairing Agreem 1,135.9
(Group) of goods agreeme 0.38% No accordi No
controller services ent 6
Industrial and nt price ng to
32
Bengang Steel Plates Co., Ltd. Annual Report 2015
Developmen services the
t Co., Ltd. agreeme
nt
Execute
Benxi Steel
Purchase accordi
(Group) Related
Same of goods Transporta Agreem ng to
Industrial
tion agreeme 618.05 0.21% No No
controller and ent the
Developmen nt price
services agreeme
t Co., Ltd
nt
Execute
Benxi Steel
Purchase accordi
(Group) Related
Same of goods Project Agreem ng to
Industrial
payment agreeme 209.8 0.07% No No
controller and ent the
Developmen nt price
services agreeme
t Co., Ltd
nt
Execute
Benxi Steel
Purchase accordi
(Group) Material Related
Same of goods Agreem 1,276.7 ng to
Construction and spare agreeme 0.43% No No
controller and ent 4 the
& Repairing parts nt price
services agreeme
Co., Ltd.
nt
Execute
Benxi Steel
Purchase accordi
(Group) Related
Same of goods Engineerin Agreem 11,717. ng to
Construction
g agreeme 3.93% No No
controller and ent 68 the
& Repairing nt price
services agreeme
Co., Ltd.
nt
Execute
Benxi Steel
Purchase accordi
(Group) Related
Same of goods Maintainin Agreem 9,254.4 ng to
Construction
g agreeme 3.10% No No
controller and ent 1 the
& Repairing nt price
services agreeme
Co., Ltd.
nt
Execute
Purchase accordi
Related
Bengang Same of goods Raw Agreem 9,978.3 ng to
Electronics agreeme 3.35% No No
Co., Ltd. controller and materials ent 6 the
nt price
services agreeme
nt
Purchase Related Execute
Bengang Same Engineerin Agreem
Electronics of goods agreeme 537.07 0.18% No accordi No
Co., Ltd. controller g ent
and nt price ng to
33
Bengang Steel Plates Co., Ltd. Annual Report 2015
services the
agreeme
nt
Execute
Purchase accordi
Bengang Related
Same of goods Repairing Agreem 1,660.1 ng to
Electronics agreeme 0.56% No No
controller and services ent 6 the
Co., Ltd. nt price
services agreeme
nt
Execute
Benxi Steel
Purchase accordi
(Group) Related
Same of goods Agreem ng to
Drilling Spare parts agreeme 100.96 0.03% No No
controller and ent the
Tools Co., nt price
services agreeme
Ltd.
nt
Execute
Benxi Steel
Purchase accordi
New Related
Same of goods Labour Agreem ng to
Business security agreeme 849.12 0.28% No No
controller and fee ent the
Developmen nt price
services agreeme
t Co., Ltd.
nt
Execute
Benxi Steel
Purchase accordi
New Related
Same of goods Material Agreem ng to
Business
and dinner agreeme 167.65 0.06% No No
controller and ent the
Developmen nt price
services agreeme
t Co., Ltd.
nt
Execute
Purchase accordi
Liaoning Related
Metallurgy Same of goods Training Agreem ng to
Technician agreeme 82.48 0.03% No No
College
controller and fee ent the
nt price
services agreeme
nt
Execute
Purchase accordi
Liaoning Related
Metallurgy Same of goods Agreem 1,692.0 ng to
Technician
Spare parts agreeme 0.57% No No
College
controller and ent 9 the
nt price
services agreeme
nt
Liaoning Purchase Related Execute
Same Project Agreem
Metallurgy of goods agreeme 602.25 0.20% No accordi No
controller payment ent
Technician and nt price ng to
34
Bengang Steel Plates Co., Ltd. Annual Report 2015
College services the
agreeme
nt
Execute
Liaoning Purchase accordi
Related
Metallurgy Same of goods Repairing Agreem ng to
agreeme 241.04 0.08% No No
Technician controller and services ent the
nt price
College services agreeme
nt
Execute
Bengang Purchase accordi
Related
Group Same of goods Commissi Agreem 5,429.3 ng to
on agreeme 1.82% No No
International controller and ent 1 the
nt price
Trading Ltd. services agreeme
nt
Execute
Bengang Purchase accordi
Related
Group Same of goods Agreem ng to
Port fee agreeme 19,882 6.67% No No
International controller and ent the
nt price
Trading Ltd. services agreeme
nt
Execute
Benxi Steel Purchase accordi
(Group) Related
Information Same of goods Agreem 1,911.9 ng to
& Automatic
Spare parts agreeme 0.64% No No
Tech. Co.,
controller and ent 3 the
nt price
Ltd. services agreeme
nt
Execute
Benxi Steel Purchase accordi
(Group) Related
Information Same of goods Engineerin Agreem 3,007.5 ng to
& Automatic g fee agreeme 1.01% No No
Tech. Co.,
controller and ent 8 the
nt price
Ltd. services agreeme
nt
Benxi Steel Execute
(Group) Purchase accordi
Related
Information Same of goods Repairing Agreem ng to
agreeme 89.5 0.03% No No
& Automatic controller and services ent the
nt price
Tech. Co., services agreeme
Ltd. nt
Benxi Steel
(Group) Purchase Related Execute
Thermal Same Heating Agreem 1,290.3
Power of goods fee agreeme 0.43% No accordi No
Developmen
controller ent 4
and nt price ng to
t Co., Ltd.
35
Bengang Steel Plates Co., Ltd. Annual Report 2015
services the
agreeme
nt
Execute
Benxi Steel Purchase accordi
(Group) Related
Thermal Same of goods Raw Agreem ng to
Power materials agreeme 9.18 0.00% No No
Developmen
controller and ent the
nt price
t Co., Ltd. services agreeme
nt
Execute
Benxi Steel Purchase accordi
Related
(Group) Same of goods Agreem 1,365.9 ng to
Design agreeme 0.46% No No
Designing controller and ent 6 the
nt price
Institute services agreeme
nt
Execute
Purchase accordi
Benxi Related
Beiying Same of goods Raw Agreem 434,677 145.81 ng to
Steel & Iron
materials agreeme No No
(Group) Co., controller and ent .55 % the
Ltd. nt price
services agreeme
nt
Execute
Purchase accordi
Benxi Related
Beiying Same of goods Power Agreem 43,620. ng to
Steel & Iron
supply agreeme 14.63% No No
(Group) Co., controller and ent 86 the
Ltd. nt price
services agreeme
nt
Execute
Purchase accordi
Benxi Related
Beiying Same of goods Transporta Agreem ng to
Steel & Iron
tion agreeme 702.77 0.24% No No
(Group) Co., controller and ent the
Ltd. nt price
services agreeme
nt
Execute
Purchase accordi
Benxi Related
Beiying Same of goods Labor Agreem 5,766.0 ng to
Steel & Iron agreeme 1.93% No No
(Group) Co., controller and service ent 7 the
Ltd. nt price
services agreeme
nt
Benxi Purchase Related Execute
Beiying Same Agreem 1,644.1
Steel & Iron of goods Spare parts agreeme 0.55% No accordi No
(Group) Co., controller ent 8
Ltd. and nt price ng to
36
Bengang Steel Plates Co., Ltd. Annual Report 2015
services the
agreeme
nt
Execute
Purchase accordi
Liaoning Material Related
Hengtong Same of goods Agreem 10,315. ng to
Metallurgy and spare agreeme 3.46% No No
Equipment controller and ent 47 the
Co., Ltd. parts nt price
services agreeme
nt
Execute
Purchase accordi
Liaoning Material Related
Hengtai Same of goods Agreem 1,186.0 ng to
Heavy and spare agreeme 0.40% No No
Machine controller and ent 6 the
Co., Ltd. parts nt price
services agreeme
nt
Execute
Purchase accordi
Liaoning Related
Hengtai Same of goods Repairing Agreem 2,670.6 ng to
Heavy agreeme 0.90% No No
Machine controller and services ent 1 the
Co., Ltd. nt price
services agreeme
nt
Execute
Purchase accordi
Bengang Related
Controlle of goods Property Agreem ng to
Group Co., manageme agreeme 84.55 0.03% No No
r and nt fee ent the
Ltd. nt price
services agreeme
nt
Execute
Sales of accordi
Bengang Related
Same goods Power Agreem ng to
Electronics
supply agreeme 0.00% No No
controller and ent the
Co., Ltd. nt price
services agreeme
nt
Execute
Sales of accordi
Benxi Related
Beiying Same goods Material Agreem 16,948. ng to
Steel & Iron and spare agreeme 5.79% No No
(Group) Co., controller and parts ent 08 the
Ltd. nt price
services agreeme
nt
Benxi Sales of Related Execute
Beiying Same Agreem
Steel & Iron goods Products agreeme 779.67 0.27% No accordi Yes
(Group) Co., controller ent
Ltd. and nt price ng to
37
Bengang Steel Plates Co., Ltd. Annual Report 2015
services the
agreeme
nt
Execute
Sales of accordi
Benxi Related
Beiying Same goods Commissi Agreem 6,787.2 ng to
Steel & Iron
on agreeme 2.32% No No
(Group) Co., controller and ent 4 the
Ltd. nt price
services agreeme
nt
Execute
Sales of accordi
Benxi Steel Related
(Group) Same goods Agreem ng to
Power
Real-estate
supply agreeme 115.79 0.04% No No
Developmen controller and ent the
t Co., Ltd. nt price
services agreeme
nt
Execute
Sales of accordi
Benxi Steel Related
(Group) Same goods Material Agreem ng to
Real-estate and spare agreeme 0.00% No No
Developmen controller and parts ent the
t Co., Ltd. nt price
services agreeme
nt
Execute
Benxi Steel Sales of accordi
(Group) Related
Steel Process Same goods Power Agreem ng to
and supply agreeme 62.05 0.02% No No
Logistics
controller and ent the
nt price
Co., Ltd. services agreeme
nt
Execute
Benxi Steel Sales of accordi
(Group) Related
Steel Process Same goods Agreem 47,928. ng to
and
Products agreeme 16.38% No Yes
Logistics
controller and ent 33 the
nt price
Co., Ltd. services agreeme
nt
Execute
Sales of accordi
Benxi Steel Related
(Group) Same goods Agreem ng to
Machinery
Products agreeme 582.41 0.20% No Yes
Co., Ltd.
controller and ent the
nt price
services agreeme
nt
Benxi Steel Sales of Related Execute
(Group) Same Power Agreem 1,890.3
Machinery goods agreeme 0.65% No accordi No
Co., Ltd.
controller supply ent 3
and nt price ng to
38
Bengang Steel Plates Co., Ltd. Annual Report 2015
services the
agreeme
nt
Execute
Sales of accordi
Benxi Steel Material Related
(Group) Same goods Agreem ng to
Machinery
and spare agreeme 555.35 0.19% No No
Co., Ltd.
controller and ent the
parts nt price
services agreeme
nt
Execute
Sales of accordi
Benxi Steel Related
(Group) Same goods Power Agreem ng to
Construction agreeme 457 0.16% No No
Co., Ltd.
controller and supply ent the
nt price
services agreeme
nt
Execute
Sales of accordi
Benxi Steel Material Related
(Group) Same goods Agreem 12,409. ng to
Construction
and spare agreeme 4.24% No No
Co., Ltd.
controller and ent 23 the
parts nt price
services agreeme
nt
Execute
Sales of accordi
Benxi Steel Related
(Group) Same goods Power Agreem 71,950. ng to
Mining Co., agreeme 24.60% No No
Ltd.
controller and supply ent 34 the
nt price
services agreeme
nt
Execute
Sales of accordi
Benxi Steel Related
Same goods Material Agreem 12,307. ng to
(Group)
Mining Co.,
and spare agreeme 4.21% No No
Ltd.
controller and parts ent 32 the
nt price
services agreeme
nt
Execute
Sales of accordi
Benxi Steel Related
(Group) Same goods Freight Agreem ng to
Mining Co., income agreeme 850.95 0.29% No No
Ltd.
controller and ent the
nt price
services agreeme
nt
Benxi Steel Sales of Related Execute
(Group) Same Commissi Agreem
Mining Co., goods agreeme 662.63 0.23% No accordi Yes
Ltd.
controller on ent
and nt price ng to
39
Bengang Steel Plates Co., Ltd. Annual Report 2015
services the
agreeme
nt
Execute
Benxi Steel Sales of accordi
(Group) Related
Thermal Same goods Power Agreem 3,152.9 ng to
Power agreeme 1.08% No No
Developmen
controller and supply ent 3 the
nt price
t Co., Ltd. services agreeme
nt
Execute
Benxi Steel Sales of accordi
(Group) Material Related
Thermal Same goods Agreem 2,646.7 ng to
Power
and spare agreeme 0.90% No No
Developmen
controller and ent 3 the
parts nt price
t Co., Ltd. services agreeme
nt
Execute
Benxi Steel Sales of accordi
(Group) Related
Thermal Same goods Freight Agreem ng to
Power agreeme 0.00% No No
Developmen
controller and income ent the
nt price
t Co., Ltd. services agreeme
nt
Execute
Sales of accordi
Benxi Steel Related
(Group) Same goods Power Agreem ng to
Industrial agreeme 928.48 0.32% No No
Developmen controller and supply ent the
t Co., Ltd. nt price
services agreeme
nt
Execute
Sales of accordi
Benxi Steel Related
(Group) Same goods Commissi Agreem ng to
Industrial agreeme 53.12 0.02% No Yes
Developmen controller and on ent the
t Co., Ltd. nt price
services agreeme
nt
Execute
Sales of accordi
Benxi Steel Material Related
(Group) Same goods Agreem 9,601.4 ng to
Industrial and spare agreeme 3.28% No No
Developmen controller and ent 2 the
t Co., Ltd. parts nt price
services agreeme
nt
Benxi Steel Sales of Related Execute
Same Power Agreem
(Group) goods agreeme 20.19 0.01% No accordi No
controller supply ent
Information and nt price ng to
40
Bengang Steel Plates Co., Ltd. Annual Report 2015
& Automatic services the
Tech. Co., agreeme
Ltd. nt
Execute
Benxi Steel
Sales of accordi
(Group) Related
Same goods Power Agreem ng to
Construction agreeme 102.17 0.03% No No
controller and supply ent the
& Repairing nt price
services agreeme
Co., Ltd.
nt
Execute
Benxi Steel
Sales of accordi
(Group) Material Related
Same goods Agreem ng to
Construction and spare agreeme 420.32 0.14% No No
controller and ent the
& Repairing parts nt price
services agreeme
Co., Ltd.
nt
Execute
Sales of accordi
Benxi Steel Related
(Group) Same goods Power Agreem ng to
Metallurgy agreeme 420.88 0.14% No No
Residues controller and supply ent the
Co., Ltd. nt price
services agreeme
nt
Execute
Sales of accordi
Benxi Steel Material Related
(Group) Same goods Agreem 2,377.4 ng to
Metallurgy and spare agreeme 0.81% No No
Residues controller and ent 5 the
Co., Ltd. parts nt price
services agreeme
nt
Execute
Sales of accordi
Benxi Steel Related
(Group) Same goods Freight Agreem ng to
Metallurgy agreeme 0.00% No No
Residues controller and income ent the
Co., Ltd. nt price
services agreeme
nt
Execute
Sales of accordi
Benxi Steel Related
(Group) Same goods Commissi Agreem ng to
Metallurgy agreeme 678.9 0.23% No Yes
Residues controller and on ent the
Co., Ltd. nt price
services agreeme
nt
Parent Sales of Related Execute
Benxi Steel Power Agreem 5,550.4
(Group) Co., Compan goods agreeme 1.90% No accordi No
Ltd. supply ent 6
y and nt price ng to
41
Bengang Steel Plates Co., Ltd. Annual Report 2015
services the
agreeme
nt
Execute
Sales of accordi
Parent Material Related
Benxi Steel goods Agreem ng to
(Group) Co., Compan and spare agreeme 896.16 0.31% No No
Ltd. and ent the
y parts nt price
services agreeme
nt
Execute
Sales of accordi
Benxi Steel Related
New Same goods Power Agreem ng to
Business agreeme 41.12 0.01% No No
Developmen controller and supply ent the
t Co., Ltd. nt price
services agreeme
nt
Execute
Sales of accordi
Benxi Steel Material Related
New Same goods Agreem ng to
Business and spare agreeme 0.00% No No
Developmen controller and ent the
t Co., Ltd. parts nt price
services agreeme
nt
Execute
Sales of accordi
Dalian Related
Boluole Same goods Commissi Agreem ng to
Steel Tube agreeme 519.52 0.18% No Yes
Ltd.
controller and on ent the
nt price
services agreeme
nt
Execute
Liaoning
Sales of accordi
Bengang Related
Same goods Commissi Agreem 58,766. ng to
Steel & Iron agreeme 20.09% No Yes
controller and on ent 02 the
Trading Co., nt price
services agreeme
Ltd.
nt
Execute
Liaoning Sales of accordi
Material Related
Metallurgy Same goods Agreem ng to
and spare agreeme 0.00% No No
Technician controller and ent the
parts nt price
College services agreeme
nt
Tianjin Sales of Related Execute
Same Commissi Agreem
Bengang goods agreeme 0.00% No accordi Yes
controller on ent
Steel Plate and nt price ng to
42
Bengang Steel Plates Co., Ltd. Annual Report 2015
Processing services the
and Delivery agreeme
Co., Ltd. nt
Execute
Sales of accordi
Benxi Steel Material Related
& Iron Same goods Agreem ng to
Group
and spare agreeme 0.00% No No
Hospital
controller and ent the
parts nt price
services agreeme
nt
Execute
Sales of accordi
Benxi Steel Related
& Iron Same goods Power Agreem ng to
Group agreeme 13.4 0.00% No No
Hospital
controller and supply ent the
nt price
services agreeme
nt
Execute
Benxi Steel Sales of accordi
& Iron Material Related
(Group) Same goods Agreem ng to
Zhengtai and spare agreeme 0.00% No No
Construction controller and ent the
Materials parts nt price
Co., Ltd. services agreeme
nt
Execute
Benxi Steel Sales of accordi
& Iron Related
(Group) Same goods Power Agreem ng to
Zhengtai agreeme 0.23 0.00% No No
Construction controller and supply ent the
Materials nt price
Co., Ltd. services agreeme
nt
Execute
Liaoning
Sales of accordi
Hengtong Related
Same goods Power Agreem 1,518.1 ng to
Metallurgy agreeme 0.52% No No
controller and supply ent 6 the
Equipment nt price
services agreeme
Co., Ltd.
nt
Execute
Liaoning
Sales of accordi
Hengtong Material Related
Same goods Agreem 1,439.3 ng to
Metallurgy and spare agreeme 0.49% No No
controller and ent 4 the
Equipment parts nt price
services agreeme
Co., Ltd.
nt
Liaoning Sales of Related Execute
Same Commissi Agreem
Hengtong goods agreeme 359.13 0.12% No accordi Yes
controller on ent
Metallurgy and nt price ng to
43
Bengang Steel Plates Co., Ltd. Annual Report 2015
Equipment services the
Co., Ltd. agreeme
nt
Execute
Bengang
Sales of accordi
Stainless Material Related
Same goods Agreem ng to
Cool-rolling and spare agreeme 52.57 0.02% No No
controller and ent the
(Dandong) parts nt price
services agreeme
Co., Ltd.
nt
Execute
Bengang
Sales of accordi
Stainless Related
Same goods Commissi Agreem ng to
Cool-rolling agreeme 121.71 0.04% No Yes
controller and on ent the
(Dandong) nt price
services agreeme
Co., Ltd.
nt
Execute
Suzhou Sales of accordi
Related
Bengang Same goods Commissi Agreem 16,236. ng to
agreeme 5.55% No Yes
Industrial controller and on ent 92 the
nt price
Co., Ltd. services agreeme
nt
Execute
Benxi Steel Sales of accordi
Related
Group Same goods Power Agreem ng to
agreeme 1.48 0.00% No No
Finance Co., controller and supply ent the
nt price
Ltd. services agreeme
nt
Execute
Sales of accordi
Benxi Steel Related
Same goods Power Agreem 2,293,2 ng to
(Group) Co., agreeme 11.9 0.00% No No
controller and supply ent 00 the
Ltd. nt price
services agreeme
nt
1,334,2 2,293,2 1,334,2
Total -- -- -- -- -- -- --
77.18 00 77.18
Details of any sales return of a large
None
amount
Give the actual situation in the report
period where a forecast had been made
for the total amounts of routine None
related-party transactions by type to
occur in the current period(if any)
44
Bengang Steel Plates Co., Ltd. Annual Report 2015
Reason for any significant difference
between the transaction price and the None
market refernce price (if applicable)
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No main related transactions of joint investment outside for the Company in reporting period.
4. Credits and liabilities with related parties
√Applicable □Not applicable
Was there any non-operating credit or liability with any related party?
□Applicable √ Not applicable
Non-existtencet
5. Other significant related-party transactions
□Applicable √ Not applicable
Non-existtencet
XVII.Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□Applicable √ Not applicable
□Applicable √ Not applicable
No trusteeship, contract or leasing for the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No any contract for the Company in the reporting period.
45
Bengang Steel Plates Co., Ltd. Annual Report 2015
(3) Lease
□Applicable √ Not applicable
No any lease for the Company in the reporting period..
2.Guarantees
□Applicable √ Not applicable
No any guarantees for the Company in the reporting period..
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable √ Not applicable
In RMB0000
Impairment Actual
Related Principal
Title of Type of Amount Mean of provision Predicted gain/loss
Relationship transaction Started on Expired on retrieved
entrustee product entrusted reward provided (if income of the
or not this period
any) period
ICBC Ltd. On
Capital January February agreement Recove
Benxi No 15,000 15,000 51.78 51.78
guaranteed 13,2015 17,2015 r
Branch
Shanghai
Pudong
On
Developme Capital February February agreement Recove
No 15,000 15,000 26.9 26.9
nt Bank guaranteed 11,2015 28,2015 r
Benxi
Branch
Shengjing
On
Bank Capital February March agreement Recove
No 40,000 40,000 166.58 166.58
Benxi guaranteed 15,2015 25,2015 r
Branch
Guangdong
Developme On
Capital April April agreement Recove
nt Bank No 30,000 30,000 36.83 36.83
guaranteed 3,2015 16,2015 r
Benxi
Branch
Guangdong
Developme On
Capital April April agreement Recove
nt Bank No 15,000 15,000 31.14 31.14
guaranteed 3,2015 24,2015 r
Benxi
Branch
On
ICBC Ltd. No Capital 10,000 March April agreement 10,000 34.52 34.52 Recove
46
Bengang Steel Plates Co., Ltd. Annual Report 2015
Benxi guaranteed 6,2015 10,2015 r
Branch
ICBC Ltd. On
Capital March June agreement Recove
Benxi No 30,000 30,000 310.68 310.68
guaranteed 29,2015 29,2015 r
Branch
ICBC Ltd. On
Capital June July agreement Recove
Benxi No 19,700 19,700 64.23 64.23
guaranteed 25,2015 31,2015 r
Branch
Total 174,700 -- -- -- 174,700 722.66 722.66
Resource of capital trusted Idle capital under the Company possession
Accumulated principal and gains
overdue 0
Lawsuit (if any) None
Date of announcement made by the
Board about approval of trusted April 20,2015
financial service
Date of announcement made by the
Shareholders Meeting about approval
of trusted financial service
Whether there is a future trust
Yes
management plan
（2）Situation of Entrusted Loans
□ Applicable √ Not applicable
No any Entrusted loans for the Company in the reporting period..
4. Other significant contract
□ Applicable √ Not applicable
No other significant contracts for the Company in reporting period.
XVIII.Explanation about other significant matters
√Applicable□Not applicable
The companys controlling shareholder, Benxi Steel (Group) Co., Ltd., increased its holding shares through
the No.47 Excellence Assets Management Plan of Shenwan Hongyuan Securities Co., Ltd during
the period from September 2, 2015 to October 13, 2015. Before increasing the holding shares, the
controlling company holds a total of 2,417,768,374 shares of Bengang Steel Plates Co.,Ltd, taking
77.10% of the share capital of Bengang Steel Plates Co.,Ltd; after the increasing of the holding
shares, the controlling company holds a total of 2,457,560,978 shares, taking 78.37% of the share
capital of Bengang Steel Plates Co.,Ltd.
47
Bengang Steel Plates Co., Ltd. Annual Report 2015
XIX.Major issues of subsidiary
□ Applicable √ Not applicable
XX.Social responsibility
√Applicable□Not applicable
During the reporting period, the company conformed to the provisions stipulated by the relevant
documents of social responsibility implementation, actively protected the legitimate rights and
interests of the creditors and all the company staff, honestly treated the suppliers, customers and
consumers and actively engaged in the public welfare undertakings such as environmental
protection and community development, while pursuing the economic profits and protecting the
interests of the shareholders. In the business activities, the company consciously complied with the
principle of voluntariness, fairness, compensation of equal value and honesty and credibility,
consciously abided by social morality, professional ethics, consciously accepted the supervision
from the government and the public and actively performed the companys social responsibility.
Whether the listed company and its subsidiaries belong to the heavy polluting industries regulated by the state
environmental protection department.
√Yes □ No □ Not applicable
During the reporting period, the company fully implemented by conforming to the Law of
Environmental Protection and the new standard of pollutant emission, greatly promoted the
implementation of key environmental protection projects, actively carried out the comprehensive
managing of the factory environments and fully completed the goal of pollutant emission reduction
and blue-sky project of the "Twelfth Five Year Plan".
The company has a total of 197 sets of environmental protection facilities and the running rate of
the facilities reached up to 97%. The rate of the pollutant discharged conforming to the standard is
94.1%. Thus achieved the emission reduction of 2729.71 tons of sulfur dioxide, 562.83 tons
nitrogen oxides and1391.84 tons of smoke dust.
While strengthening the production and operation, the company highly emphasized the
environmental protection work. In 2005, the company newly carried out 8 environmental protection
projects fully according to the plan and the schedule. The company cumulatively invested
RMB199.85 million on the environment protection, which were mainly for: the heat and power
cogeneration renovation project of the third power workshop of the power plant, the renovation
project of desulfurization and denitration of coal fired boiler in the high-pressure workshop,
advanced treatment of carbon fiber wastewater in the coking plant, new dust-suppression net built
in the raw materials plant, factory area greening and so on.
According to the requirements of the environmental protection policy issued by the superior, the
company and its subordinate factories completed the assessment works of the comprehensive,
special and field handling of the contingency plan of Benxi City and filed for record.
XXI.Information about the corporate bonds
Whether the listed company failed to honor the corporate bonds public issued and listed on the Stock Exchange in
48
Bengang Steel Plates Co., Ltd. Annual Report 2015
due or undue at the approval date of the annual report
Yes
1.Basic information of corporate bonds
Bond short Bond balance
Bond name Bond code Issue day Due day Interest rate Servicing way
name 0000
Comporaton Due payments
Bond 2015 15 Benxi Steel February February once a year,
112236 150,000 5.17%
（The ist 01 9,2015 9,2018 maturing debt
Phase） at a time.
Corporate bonds listed or
Shenzhen Stock Exchange
trading places
Investors appropriate The above mentioned bond trading will be implemented Investors Management
arrangement
The interests of the 2015-corporate bonds (first term) of Bengang Steel Plates Co., Ltd of the
period from February 5, 2015 to February 4, 2016 were paid on February 5, 2016 as each bond
During the reporting period,
would gain RMB 5.17 (tax inclusive). The Record Day of the interest payment period of the bonds
interest payment situation of the
was February 4, 2016, thus any investor who buys and holds the bonds before or on the date of
company bonds
February 4, 2016 shall enjoy the right to receive the interest payments. The investors who sold out
the bonds on the date of February 4, 2016 shall not enjoy the interests afore-said.
If the corporate bonds attached
to special clauses to the issuer
or the investors such as option
clause and exchangeable clause,
Not applicable
please specify the
implementation status of the
corresponding clauses. (If
applicable)
2.Bond trustee and the credit rating agency information
Bond trustee：
A02 28/F,
35/F, Anlian
Building ,
ESSENCE No.4018. Tian Zhu, Zhu
Name Office address Contact Tel 010-83321219
Securities Jintian Road, Shuo
Futian
District,
Shenzhen.
49
Bengang Steel Plates Co., Ltd. Annual Report 2015
The credit rating agencies which follow and rate the corporate bond during the reporting period
12/F, PICC Building, No.Jianguo Menwai
Name United Ratings Co., Ltd. Office address
Street, Chaoyang District, Beijing.
During the report period, the bond trustee,
credit rating agency employed by the
company that have changed, reasons for
Not applicable
the change, performing procedures,
relevant influence on investors,etc(If
applicable).
3.The usage of corporate bonds to raise money
After deducting corporate bond issuance costs, all the funds raised for debt restructurin
The usage and performance of raised funds
g, debt repayment, the amount of repayment of bank borrowings was 1.5 billion yuan,
from Corporate bonds
as of December 31, 2015, all the funds raised have been used up.
At the end of balance (ten thousand) 0
Raise money for special account operation Normal
Whether the usage of the raised money
corresponding to the purposes of promise, Unanimous
use plans , and other agreement
4. Corporate bond rating information
According to the supervision department and united rating agencys relevant requirements on tracking rating, the united rating
agency will, in the duration of this bond, exercise a regular tracking rating for the bonds 2015 (first session) of Benxi Iron& Steel
(Group) Co., Ltd. in 2 months upon publication of its annual report and will process irregular tracking rating as appropriate. Investors,
please pay attention to that.
5.Corporate bond credit mechanism, the debt repayment plans and other security measures
During the reporting period, corporate bonds to increase trust mechanism, debt repayment plans and other safeguards has not change
d. Bengang Group Co., Ltd. for the company's bond guarantor, as of the reporting period, Bengang Group's net assets 35.679 billion
yuan, asset-liability ratio 74.27%, ROE -17.79% Current Ratio 0.51 Quick Ratio 0.28 (or more financial unaudited data). Bengangeel
Group Joint Credit Rating Co. The rating is AAA.
6.During the reporting period the bondholder meeting
During the reporting period, the company did not hold bondholders meeting.
7.During the reporting period the bond trustee perform his duties
During the report period, the bond trustee performs its responsibilities in accordance with the regulations in Corporate Bond Issuance
and Transaction Management Method and commitment in Bond Trustee Agreement:
50
Bengang Steel Plates Co., Ltd. Annual Report 2015
(I) Constantly pay attention to the credit status, execution of credit enhancement measurements and credit repayment safeguard
measures of the guarantor and company;
(II) Supervise the utilization of raised funds in the company during the duration of bond;
(III) exercise a well-rounded investigation into and pay constant attention to the companys debt repayment ability and credit
enhancement measures, and provide at least one trustee affair report for the market each year;
(IV) constantly supervise the companys performance of information disclosure obligation during the duration of the bond.
The trustee hasnt been confronted with conflict of interest in performing its responsibilities.
The trustee is predicted to announce the trustee affair report 2015 on the website of Shenzhen Stock Exchange before June 30, 2016.
8.During the reporting period, the company's major accounting data and financial indicators for last 2
years
In RMB0000
Items 2015 2014 At the same time rate of change
EBITDA -115,704.04 309,014 -137.44%
The net cash flow generated by
-344,376.54 -8,727.4 3,845.92%
investment activities
The net cash flow generated by
96,516.77 211,409.2 -54.35%
financing activities
The final cash and balance of
461,278.28 932,703.4 -50.54%
cash equivalents
liquidity ratio 0.61% 0.79% -0.18%
Asset-liability ratio 72.02% 67.79% 4.23%
Quick action ratio 0.32% 0.45% -0.13%
EBITDA total debt ratio -0.05% 0.15% -0.20%
The multiple of interest
-2.8 1.13 -347.79%
safeguard
The multiple of cash interest
-1.57 4.01 -139.15%
safeguard
EBITDA multiple of interest
-1.08 3.2 -133.75%
safeguard
loan payment rate 100.00% 100.00% 0.00%
Interest rate of pay 100.00% 100.00% 0.00%
The main reason that the accounting data and financial indicators yoy change more than 30%
√Applicable □ Not applicable
The main reasons for the above accounting data and financial indicators of the corporate bonds varied more than 30% year on year
1. EBITDA decreased by 137.44% in the period than that of last year，Mainly due to the company recorded a big
loss in the current period.
2. The net cash flow generated by investment activities increased by 3845.92% in the period than that of last year，
51
Bengang Steel Plates Co., Ltd. Annual Report 2015
The main reason was the increase of cash payments for the purchasing of fixed assets, intangible assets and other
long-term assets in the current period
3. The net cash flow generated by financing activities decreased by 54.35%% in the period than that of last year，
The main reason was the increase of loan repayment in the current period.
4. The final cash and balance of cash equivalents decreased by50.54% in the period than that of last year，The
main reason was due to the cash received in the sale of goods and the rendering of service decreased, the cash
payments for the purchasing of fixed assets, intangible assets and other long-term assets increased and the net
borrowing decreased in the current period compared with the last year.
5. The multiple of interest safeguard decreased by347.79%% in the period than that of last year，Mainly due to the
company recorded a big loss in the current period.
6. The multiple of cash interest safeguard decreased by139.15% in the period than that of last year，Mainly due to
net cash flows from operating activities of the company decreased during the current period
7. EBITDA multiple of interest safeguard decreased by133.75% in the period than that of last year，Mainly due to
the company recorded a big loss in the current period.
9. Property rights limits by the end of report period
Items Book balue at the end of this year Limited reason
Monetary fund 527,695,736.99 For the issuance of notes payable
and the purchase of foreign
exchange
Notes receivable 718,925,665.16 Notes payable
Inventories
Fixed assets 28,440,000.00 Mortgage loan
Intangible assets
Account receivable and Order 1,966,875,200.00 Loans
Total 3,241,936,602.15
10.During the report period interest payment for other bonds and debt financing tool
None
11.During the report period obtain bank credit, its use situation and repayment of bank loans
During the report period, the total bank credit amount of the company is 37.69 billion yuan, and 25.36 billion yuan has been utilized,
with the unused line of credit of 12.32 billion yuan. The total loan amount at the beginning is 19.594 billion yuan, and a loan of
25.869 billion yuan is added in this period. And the loan repaid is 24.883 billion yuan, with the loan balance at the ending of 20.58
billion yuan.
12.During the reporting period the situation of performing the related agreement or commitment in the
corporate bond prospectus
The company strictly observes the Bond Trustee Agreement and regulations as described in different bond terms and conditions, and
fulfills its promises.
52
Bengang Steel Plates Co., Ltd. Annual Report 2015
13.Major events occurring in the period of report
As for the major events that take place during the report period, please refer to the notices disclosed on the website of Shenzhen
Stock Exchange respectively on January 29, March 1 and March 29, 2016, including the Indicative Notice on Possibly Implementing
Investors Appropriate Management on Corporate Bonds in 2015, Second Indicative Notice on Possibly Implementing Investors
Appropriate Management on Corporate Bonds in 2015, Third Indicative Notice on Possibly Implementing Investors Appropriate
Management on Corporate Bonds in 2015（No.2016-005,2016-015 and 2016-016）.
14.Whether there is a guarantor corporate bonds
√ Yes □No
The guarantor of the corporate bond is a legal person or othe rorganizations
√ Yes □No
Whether to disclosethe guarantors financial statements during the reporting period, including the balance sheet, income statement,
the cash flow statement, statement of changes in owners equity(shareholders equity) and the notes to financial statements
□ Yes √No
The company shall provide the guarantors financial statement(mark whether it has been audited) during the report period.
53
Bengang Steel Plates Co., Ltd. Annual Report 2015
VI. Change of share capital and shareholding of Principal
Shareholders
Ⅰ.Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportio Capitaliza
n tion of
Share Bonus Proportio
common Other Subtotal Quantity
allotment shares n
reserve
fund
I. Shares with trade restriction
75,750 0.00% -75,750 -75,750 0 0.00%
conditions
3. Other domestic shares 75,750 0.00% -75,750 -75,750 0 0.00%
Domestic natural person shares 75,750 0.00% -75,750 -75,750 0 0.00%
II. Shares without trading limited 3,135,924, 3,136,000
100.00% 75,750 75,750 100.00%
conditions 250 ,000
2,735,924, 2,736,000
1. Common shares in RMB 87.24% 75,750 75,750 87.24%
250 ,000
2. Foreign shares in domestic 400,000,0 400,000,0
12.76% 12.76%
market 00 00
3,136,000, 3,136,000
III. Total of capital shares 100.00% 100.00%
000 ,000
Causation of change in share equity
[V] Applicable [ ]Not applicable
During the reporting period, as some of the company's directors had left the posts and some of the
supervisors decreased their holding shares, thus the number of corresponding shares under
limited-conditions for sale was reduced.
Approval of Change of Shares
□Applicable √Not applicable
Situation of registration process of transferred shares
[] Applicable; [V] Not applicable
nfluences 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:
54
Bengang Steel Plates Co., Ltd. Annual Report 2015
[] Applicable; [V] Not applicable
Other information the Company thinks necessary or required by the authority to be disclosed
[] Applicable; [V] Not applicable
2. Change of shares with limited sales condition
□Applicable √Not applicable
Ⅱ.Issuing and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□Applicable √Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□Applicable √Not applicable
3.About the existing employees’ shares
□Applicable√Not applicable
Ⅲ.Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Share
Total
preferred shareh
Total number Total The total number o
olders at the end
of common shareholders at f preferred shareho
of the month
shareholders at the end of the lders voting rights
72,207 56,985 0 from the date of 0
the end of the month from the restored at period-e
disclosing the
reporting date of disclosing nd(if any)(See
annual report(if
period the annual report Notes 8)
any)(See Notes
8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number Amount Amount Number of share pledged/frozen
Proportio Changes
of shares of of
Shareholders Nature of n of in
held at restricted un-restrict
shareholder shares reporting State of share Amount
period shares ed shares
held（%） period
-end held held
55
Bengang Steel Plates Co., Ltd. Annual Report 2015
Benxi Steel (Group) State-owned legal 2,457,560 -106,869, 2,457,560,
Ltd. person 78.37%
,978 022 978
GIC PRIVATE
Overseas legal person 0.31% 9,754,211
LIMITED
BBH A/C
VANGUARD
EMERGING
Overseas legal person 0.26% 8,157,311
MARKETS
STOCK INDEX
FUND
Domestic natural
Li Jia 0.24% 7,642,251
person
GSIC A/C
MONETARY
Overseas legal person 0.17% 5,486,354
AUTHORITY OF
SINGAPORE
Domestic natural
Zhan Changcheng 0.15% 4,648,615
person
VANGUARD
TOTAL
INTERNATIONA Overseas legal person 0.15% 4,606,141
L STOCK INDEX
FUND
Bank of China－
Huaxia Securities Other 0.11% 3,424,700
Investment Fund
Haitong
International
Securities
Overseas legal person 0.10% 3,141,109
Company
Limited-Account
Client
GUOTAI JUNAN
SECURITIES(HO
Overseas legal person 0.09% 2,876,904
NGKONG)
LIMITED
Strategy investors or general legal
person becomes top 10 shareholders
N/A
due to rights issued (if any )(See Notes
3)
Notes to relationship or “action in concert” It is unknown to the Company whether there is any related connection or Action in Concert as described by
among the top ten shareholders. Rules of Information Disclosing Regarding Changing of Shareholding Status of Listed Companies existing
56
Bengang Steel Plates Co., Ltd. Annual Report 2015
among the above shareholders.
Shareholding of top 10 shareholders of unrestricted shares
Category of shares
Quantity of unrestricted shares held at the end of the
Name of the shareholder Category of shares Amount
reporting period
RMB Common
Benxi Steel (Group) Co.,Ltd. 2,457,560,978 2,457,560,978
shares
Foreign shares
placed in
GIC PRIVATE LIMITED 9,754,211 9,754,211
domestic
exchange
Foreign shares
BBH A/C VANGUARD EMERGING placed in
8,157,311 8,157,311
MARKETS STOCK INDEX FUND domestic
exchange
RMB Common
Li Jia 7,642,251 7,642,251
shares
Foreign shares
GSIC A/C MONETARY placed in
5,486,354 5,486,354
AUTHORITY OF SINGAPORE domestic
exchange
Foreign shares
placed in
Zhan Changcheng 4,648,615 4,648,615
domestic
exchange
Foreign shares
VANGUARD TOTAL
placed in
INTERNATIONAL STOCK INDEX 4,606,141 4,606,141
domestic
FUND
exchange
Bank of China－Huaxia Securities RMB Common
3,424,700 3,424,700
Investment Fund shares
Foreign shares
Haitong International Securities placed in
3,141,109 3,141,109
Company Limited-Account Client domestic
exchange
Foreign shares
GUOTAI JUNAN
placed in
SECURITIES(HONGKONG) 2,876,904 2,876,904
domestic
LIMITED
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
Action-in-concert among top 10 non-restricted
Information Disclosure Regulations for Change of Shareholding in PLC
current share holders, top 10 non-restricted
The Company is not aware of any relationship among the other shareholders, nor of any action-in-concert as
current share holders and top 10 shareholders
recognized according to 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
57
Bengang Steel Plates Co., Ltd. Annual Report 2015
recognized according to the Information Disclosure Regulations for Change of Shareholding in PLC.
Shareholders among the top 10 participating in
None
securities margin trading (if any) (see Note 4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
2.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Type of Controlling Shareholders:Legal person
Legal
Name of the Controlling
representative/Leade Date of incorporation Organization code Principal business activities
shareholder
r
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 ,
Benxi Steel (Group) Co., Ltd. Zhang Xiaofang July 10,1996 11972626-3
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
58
Bengang Steel Plates Co., Ltd. Annual Report 2015
Bengang Daily (expire on
December 31, 2013); designing
and making of presswork and
advertisement, releasing,
producing of TV advertisements
in the country and abroad.
Equity of other
domestic/foreign listed
company with share
controlling and share None
participation by
controlling shareholder in
reporting period
Change of holding shareholder
[] Applicable; [V] Not applicable
No change of holding shareholder in the report period.
3．Information about the controlling shareholder of the Company
Actual controller nature：Local state owned assets management
Actual controller type：Legal person
Legal
Name of the controlling Date of
representative/per Organization code Principal business activities
shareholder establishment
son in charge
Bengang Group Co., Ltd. Zhang Xiaofang November 25,2010 56462557-5 Asset management
Equity of other
domestic/foreign listed
company with share
controlling and share None
participation by
controlling shareholder in
reporting period
Change of substantial controller
[] Applicable; [V] Not applicable
No change of substantial controller in the report period.
Chart of the controlling relationship between the practical controller and the Company
59
Bengang Steel Plates Co., Ltd. Annual Report 2015
Whether the substantial controller is controlling the Company through trusteship or other asset
management service
[] Applicable; [V] Not applicable
4. Corporation shareholders with over 10% of the Company’s shares
[] Applicable; [V] Not applicable
5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring
Party and Other Commitment Subjects
□Applicable √Not applicable
60
Bengang Steel Plates Co., Ltd. Annual Report 2015
VII. Situation of the Preferred Shares
□ Applicable √Not applicable
The Company had no preferred shares in the reporting period.
61
Bengang Steel Plates Co., Ltd. Annual Report 2015
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
Amount Amount
Shares of shares of shares Shares
Other
Starting Expiry held at increased decreased held at
Office changes
Name Positions Sex Age date of date of the at the at the the
status increase/d
tenure tenure year-begi reporting reporting year-gegi
ecrease
n(share) period(sh period(sh n(share)
are) are)
Zhao
Director, May May
Zhongmi In office Male 49
Chairman 21,2015 17,2016
n
Cao Director, October May
In office Male 49
Aimin Chairman 26,2009 17,2016
Director, February May
Han Ge
GM In office Male 47
19,2014 17,2016
May May
Zhao Wei Director In office Male 49
21,2015 17,2016
Independen May MAY
t Director In office Male 58
Jin Yongli
17,2013 17,2016
Zhong Independen May May
Tianli t Director In office Female 60
20,2014 17,2016
Zhao Independen May May
In office Male 56
Xinan t Director 21,2015 17,2016
Supervisor,
Chairman Feburuary May
Dong Liju of In office Female 52
Supervisory 19,2014 17,2016
Committee
Fubuary May
Han Mei Supervisor In office Female 47
19,2014 17,2016
February May
Li Lin Supervisor In office Female 48 375 375 0
19,2014 17,2016
Li
April May
Zhengchu Supervisor In office Male 43
1,2015 17,2016
n
Zhang January May
Supervisor In office Male 39
Yanlong 26,2014 17,2016
62
Bengang Steel Plates Co., Ltd. Annual Report 2015
Zhang Deputy June May
In office Male 59
Jichen GM 26,2008 17,2016
Bao Deputy December May
In office Male 53
Mingwei GM 28,2012 17,2016
Wang Deputy January May
In office Male 51
Fengmin GM 26,2014 17,2016
Hu
Deputy January May
Guangyua In office Male 56
GM 26,2014 17,2016
n
Wang Deputy October May
In office Male 52
Shaoyu GM,CFO 28,2015 17,2016
Sun Secretary of August May
In office Male 34
Yanbin the Board 3,2015 17,2016
Director, February May
Wang Shu Resigned Male 45 75,375 18,844 56,531
Chairman 19,2014 21,2015
Independen May 11, May
Li Kai Resigned Male 59
t Director 2009 21,2015
Li January April
Supervisor Resigned Male 45
Naiming 26,2014 1,2015
Total -- -- -- -- -- -- 75,750 0 19,219 56,531
II. Change in shares held by directors, supervisors and senior executives
Name Positions Types Date Reason
Wang Shu Director, Chairman Resigned May 21,2015 Change of position
Independent Expiration of the
Li Kai May 21,2015 Expiration of the term of office
Director term of office
Li Naiming Supervisor Resigned April 1,2015 Change of position
Secretary of the
Zhang Jichen Resigned August 3,2015 Change of position
Board
III.Posts holding
Work Experience in the past five years of Directors, supervisors and senior Executives in Current office
Profiles of the members of the Board:
Zhao Zhongmin, Male, 49 of age, Postgraduate degree, Senior Economist. He once was the Vice director of
Unman resources Dept and director of Cadre assessment of Benxi Steel (Group) Co., Ltd.; Vice General Manger of Benxi Steel
(Group) Co., Ltd.; He is now Chairman of the Board of tBengang Steel Plates Co., Ltd.
Cao Aimin, male, 49 of age, postgraduate degree, senior accountant. Once head of capital division of finance
63
Bengang Steel Plates Co., Ltd. Annual Report 2015
department, and director of department, the head of financial department of Bengang Group. Chief Accountant
and Head of Planning and Finance Division; The Chief Accountant of Bengang Group; Director of Bengang
Group Co., Ltd; Hes now vice chairman of Board of Bengang Steel Plates Co., Ltd.
Han Ge, male, 47 of age, college graduate, postgraduate in process, senior engineer. Once hes manager of
hot-rolling factory of the Company; vice manager of iron-making factory; assistant of general manager of
Bengang Group. At present hes the general manager of Bengang Steel Plates Co., Ltd.
Zhao Wei, male, 49 of age, college graduate. once head of capital division of finance dept, director
of Finance Dept of Bengang Mining Company, Director of Budget Dept of Bengang Group; Deputy General
Manager of Bengang Steel Plates Co., Ltd.;Vice Chief accountant , Vice Director of Finance Dept , Director of
Capital Business Dept of Bengang Group, Director , Deputy General Manager of Benxi Steel (Group) Co., Ltd.,
Hes now director of Bengang Steel Plates Co., Ltd.
Jin Yongli, male, 58 of age, master degree, professor. Once hes the dean of engineering school of Shenyang
University. At present hes the dean of Business School of Shenyang University, and independent director of the
Company since may 2013.
Ms. Zhong Tianli, 60 of age, professor and doctorial tutor of Northeast University. Once she was vice dean of
Business School of Northeast University, dean of Fundamental Study School and Head of Accounting Institute of
Northeast University. At present shes professor of Accounting Dept. of Business School of Northeast University.
She has been independent director of the Company since May 2014.
Zhao Xinan, male, 56 of age, professor and doctorial tutor of Northeast University. Once she was vice dean of
Business School of Northeast University, member of the national Education Dept of Managem,ent science
and Engineering Teaching steering Committee；At present hes the dean of Business School of Shenyang
University. He has been independent director of the Company since May 2015.
Profiles of the Supervisory Committee:
Dong Liju, female, 52 of age, master degree, senior engineer. Once shes head of auditing department of the
Company; the secondary Chairman of Supervisory Committee of the Company. At present shes the Chairwoman
of the Supervisory Committee of the Company.
Han Mei, female, 47 of age, college graduate, senior accountant. Once shes the vice head of financial department
of the Company; vice head of auditing department and head of administration department of the supervisory
committee of Bengang Group; Provincial Government Liaison in Bengang and the Tertiary Chairman of the
Supervisory Committee. At present shes the supervisor of Bengang Steel Plates Co., Ltd.
Li Lin, female, 48 of age, college graduate, engineer. Once shes the administrator of HR department of Bengang
Group; vice chief engineer of Transportation Department of the Company; substitute chairman of the trade union
of Transportation Department of the Company; Chairman of the trade union of Transportation Department of the
Company. At present shes the supervisor of Bengang Steel Plates Co., Ltd.
Li Zhengchun, male, 43 of age, college graduate, senior engineer .Onbce Hes the office ,assistant director and
director of human resources management Dept of The Group;rector;Vice minister of Party work Dept of Bengang
Steel Plates Co., Ltd. ;Vice chairman Labour Union and Vice Secretary of the Commission for discipline
inspection of Bengang Steel Plates Co., Ltd.; At present shes the supervisor of Bengang Steel Plates Co., Ltd.
Zhang Yanlong, 39 of age, college graduate, engineer. He once was the workshop manager of steel-making
factory; vice chief of QC department of iron-making factory, manager of steel-making factory of the Company.
Hes now the head of production division of iron-making factory of the Company. At present shes the supervisor
of Bengang Steel Plates Co., Ltd.
Executives other than directors:
Zhang Jichen, male, 59 of age, postgraduate degree, senior engineer. Once the vide director of planning
department of Benxi Steel & Iron (Group) Co., Ltd.; vice director of Strategy Dept. and director of Policy Dept.
Secretary of the Board of Bengang Steel Plate Co., Ltd.; At present hes the secretary of Board and Vice General
Manager of Bengang Steel Plates Co., Ltd.
64
Bengang Steel Plates Co., Ltd. Annual Report 2015
Bao Mingwei, male, 53 of age, university graduate, certified senior engineer. Once he was the vice manager of
hot-rolling factory, CCP secretary and vice manager of hot-rolling factory. At present hes the vice general
manager of the Company and manager of No.3 Cool Rolling Factory.
Wang Fengmin, male, 51 of age, master degree, senior engineer, professor. Once he was the vice manager of
iron-making factory of the Company. At present he is the head of production division and vice general manager of
Bengang Steel Plates Co., Ltd.
Hu Guangyuan, male, 56 of age, master degree, senior engineer, professor. Once he was the vice general manager
and general manager of Bengang Puxiang Cool-rolling Plate Co., Ltd. the head of product R&D center , At
present he is the vice general manager of Bengang Steel Plates Co., Ltd. and director of Cool-rolling Plate factory.
Wang Shaoyu, male, 52 of age, college graduate,senior accountant .Once he was the vice director , Deputy
director and director of finance Dept of Bengang Steel Plates Co., Ltd.. at present he is the vice general manager
and CFO of Bengang Steel Plates Co., Ltd..
Sun Yanbin, male, 34 of age, college graduate, senior accountant.once he was the offcer and deputy director
of budget finance Dept of Bengang Group;Manager of Finance Dept of hot rolling factory of Finance Dept of
Bengang Steel Plates Co., Ltd.；the assistant minister of Finance Dept of Bengang Steel Plates Co., Ltd.. at present
he is the vice general manager and CFO of Bengang Steel Plates Co., Ltd.. at present he is the Secretary of the
Board of Bengang Steel Plates Co., Ltd..
Office taking in shareholder companies
√Applicable □Not applicable
Does he /she
Titles
Names of the receive
engaged in Sharting date of Expiry date of
persons in Names of the shareholders remuneration or
the office term office term
office allowance from the
shareholders
shareholder
Zhao Vice General
Bengang Group Co., Ltd. March 1,2014 Yes
Zhongmin Manager
November
Cao Aimin Bengang Group Co., Ltd. Direcor Yes
1,2010
Vice Chief
accountant ,
Vice Director
of Finance
Zhao Wei Bengang Group Co., Ltd. Dept, October 1,2014 Yes
Director of
Capital
Business
Dept
Director of
Dong Liju Bengang Group Co., Ltd. April 1,2011 Yes
Audit Dept
Vice
Han Mei Bengang Group Co., Ltd. October 1,2012 Yes
directorof
65
Bengang Steel Plates Co., Ltd. Annual Report 2015
Audit Dept
Offices taken in other organizations
□Applicable √Not applicable
Punishments to the current and leaving board directors, supervisors and senior managers during the report period
by securities regulators in the recent three years
□ Applicable √Not applicable
IV. Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors ,
supervisors and senior executives
Decision making process
1. The Remuneration and Assessment Committee will produce a plan or proposal, which will be implemented upon approval of the
Board or the Shareholders Meeting;
2. Upon the performance assessment criteria and procedures, the Remuneration and Assessment Committee undertakes assessment
on the directors and executives.
3. Specific amounts and ways of rewards will be proposed according to the assessment and remuneration policies for the directors,
supervisors and executives, and adopted by voting;
4. To be implemented upon approval of the Board.
Basis of recognition:
Remuneration scheme for a particular position is recognized basing on the range of responsibilities, duties, importance, and with
consideration of similar positions in other enterprises. Remunerations are distributed basing on the assessment results and
remuneration policies.
Particulars about the payment:
Wage paid on monthly basis according to the remuneration policies
Remuneration of directors, supervisors, and executives in the report period
In RMB0000
Total Remuneration
remuneration actually receivect
Name Positions Sex Age Office status
received from the at the end of the
shareholder reporting period
Zhao Zhongmin Director, Chairman Male 49 In Office Yes
Director, Vice
Cao Aimin Chairman Male 49 In office Yes
Han Ge Director, GM Male 47 In Office 24.21 No
Zhao Wei Director Male 49 In office 15.68 Yes
Jin Yongli Independent Director Male 58 In Office 5 No
Zhong Tianli Independent Director Male 60 In office 5 No
Zhao Xinan Independent Director Male 56 In Office 5 No
Supervisor, Chairman
Dong Liju Female 52 In office Yes
of Supervisory
66
Bengang Steel Plates Co., Ltd. Annual Report 2015
Committee
Han Mei Supervisor Female 47 In Office Yes
Li Lin Supervisor Female 48 In Office 13.23 No
Li Zhengchun Supervisor Male 43 In office 11.85 No
Zhang Yanlong Supervisor Male 39 In Office 16.88 No
Vice General
Zhang Jichen Manager Male 59 In Office 20.17 No
Vice General
Bao Mingwei Manager Male 53 In office 22.28 No
Vice General
Wang Fenmin Manager Male 51 In Office 22.01 No
Vice General
Hu Guangyuan Manager Male 56 In office 21.36 No
Vice General
Wang Shaoyu Manager Male 52 In Office 20.67 No
Secretary of the
Sun Yanbin Male 34 In Office 11.02 No
Board
Wang Shu Director, Chairman Male 45 Resigned Yes
Li Kai Independent Director Male 59 Resigned 5 No
Li Naiming Supervisor, Male 45 Resigned 3.44 No
Total -- -- -- -- 222.8 --
Incentive equity to directors, supervisors or/and senior executives in the reporting period
□Applicable√Not applicable
V. Particulars about employees.
1. Staff jobs, education, job title number and proportion refer to the following pie chart:
Number of in-service staff of the parent company（person） 20,866
Number of in-service staff of the main subsidiaries（person） 648
Total number of the in-service staff（person） 21,514
Total number of staff receiving remuneration in the current
21,514
period（person）
The number of the parent company and the main subsidiarys
925
retired staffs who need to bear the cost（person）
Professional
Classified according by Professions Number of persons（person）
Production 17,503
Sales 200
Technical 1,475
Financial 148
67
Bengang Steel Plates Co., Ltd. Annual Report 2015
Administrative 2,188
Total 21,514
Education
Classified according by education background Number of persons（person）
Postgraduate or above 375
Universities 3,546
Colleges 5,787
Secondary school ,high school, technical school 4,814
below middle school 6,992
Total 21,514
2. Remuneration policies
In 2015, the company pushed forward the pilot works on distribution system reform, so as to realize
income distribution by performance; attempted to carry out the allowance system for concurrently
holding posts; established broadband salary system; deepened the internal distribution, invigorated
the proportion of fluctuate salary and fixed salary, enhance the orientation of salary distribution;
continuously deepened the allocation management of base layer and promoted the internal fairness
and reasonableness.
3.Training pllan
137 training programs were provided to 18884 employees, which was 90% as scheduled and covered 70% of the
whole employees.
4. Outsourcing situation
□ Applicable √ Not applicable
68
Bengang Steel Plates Co., Ltd. Annual Report 2015
IX. Administrative structure
I.Basic state of corporate governance
Since listed in the stock exchange, the Company has been following the laws, regulations and documents such as the Company
Law, Securities Law, Listed Company Administration Rules, Shareholders Meeting Criteria of Listed Companies, Guide of Lifting
the Quality of Listed Company, and Instructions for Articles of Association of Listed Companies. The Company has been
establishing and improving the administration structures to protect the interests of the Company and the investors. The Shareholders
Meeting was working with clear responsibilities and decision making procedures. Arrangement were made to enable convenient
During the
participating of the public investors. Online voting system was introduced for material decision making processes.
reporting period, according to the relevant laws and regulations, and combining with the actual
situation of the company, the Articles of Association, the Rules of Procedure for General
Shareholder Meeting, the Rules of Procedure for the Board Meeting, Job Specification for General
Manager, Financial Management Rules for Short-term Idle Funds, Special Deposit and Use
Management Rules for the Raised Funds, Management Rules for Related Transactions and so on
were revised early or late.
responsibility to return on investors, improved and enhanced the corporate governance standards.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the
relevant provisions of CSRC,
√Yes □No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant
provisions of CSRC.
II. Particulars about the independency of the Company in aspects of business, personnel, asset,
organization, and accounting
The Company is separated from the controlling shareholder in aspects of personnel, assets, financial affairs,
institution, business, etc. and has its own independent and complete business operation.
(1) In business operation: the Company has its own production and business planning, financial affairs check and
calculate, personnel, raw material supplies and products selling business system independently and completely, .
(2) In personnel: The Company and controlling shareholder are separate in such aspects as labor, personnel and
salary management. Such senior executives as company's chairman, general manager, vice general manager,
secretary of Board of Directors, etc. get salary from the Company, and have not held the important position other
than a director in shareholding party.
(3) In Asset: The Company is separated from the controlling shareholder's clearly in asset. The Company has its
own independent purchase, production, and marketing system.
(4) In organization: The internal operations of the Company are independent; organization structuring and
working function are totally independent.
(5) In finance: The company has independent financial & accounting department, the accounting and financial
management system were are complete and operated independently, and has bank account and pay taxes
independently.
69
Bengang Steel Plates Co., Ltd. Annual Report 2015
III. Competition situations of the industry
□ Applicable √ Not Applicable
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor
Sessions Type Meeting Date Disclosure date Disclosure index
participation ratio
Announcement
Annual Genral Annual General No.2015-021.http：
0.08% May 21,2015 May 22,2015
Meeting of 2014 Meeting //www.cninfo.com.c
n
The first provisional Announcement
Provisional
shareholders No.2015-052,http：
shareholders 0.08% September 15,2015 September 16,2015
General meeting in //www.cninfo.com.c
General Meeting
2015 n
The Second
Announcement
provisional Provisional
No.2015-067,http：
shareholders shareholders 0.05% December 29,2015 December 30,2015
//www.cninfo.com.c
General meeting in General Meeting
n
2015
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
V. Responsibility performance of independent directors in report period
1. The attending of independent directors to board meetings and shareholders’ general meeting
The attending of independent directors
Number of Failure to
Number of
Board meetings Number of personally attend
Independent Number of spot meetings Number of
necessary to be attendances by board meetings
Directors attendances attended by absence
attended in the representative successively
Communication
reporting period twice (Yes/No)
Li Kai 1 1 0 0 0 No
Jin Yongli 7 5 2 0 0 No
Zhong Tianli 7 4 2 1 0 No
Zhao Xinan 6 4 2 0 0 No
70
Bengang Steel Plates Co., Ltd. Annual Report 2015
Number of general meetings attended
by independent directors as non-voting 3
delegates
Notes to failure to personally attend Board Meetings Successively Twice
2.Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
□ Yes √No
Independent directors proposed no objection against the relevant matters in the reporting period.
3. Other notes to duty performance of independent directors
Has an independent directors advice to the Company been accepted
√Yes □No
Explanation on acceptance of or failure to accept an independent directors advice to the Company.
Independent directors have not made recommendations during the reporting period.
VI. Fulfilling of duties by the Special Committees under the Board of Directors
The Remuneration and Assessment Committee is responsible to inspect the assessment process of the executives
in year 2015.
The Development and Strategy Committee is responsible to examine the Board of Directors Work Report 2015 in
advance and provide suggestions on the Companys long-term development basing on its researches.
The Auditing Committee is responsible to inspect the operation of internal auditing system, to verify the financial
information disclosure, to examine the Financial Report 2015, and the Internal Control Introspective Evaluation
Report, etc.
Nomination Committee provided opinions on the adjustment of executive positions.
VII. Fulfilling of duties of the Supervisory Committee
Is there any risk with the Company discovered by the Supervisory Committee in the report period
[] Yes [V] No
The Supervisory Committee hasnt issued any objection on inspection issues.
VIII. Assessment and incentive scheme for executives
The Companys performance assessment scheme for executives has become a regular mechanism. Annual
business plans adopted by the shareholders meeting and the Board were assigned and authorized to the executive
team of the Company and were used as basis of annual assessment. Operational targets were scheduled by the
Board to the executives and were reviewed from time to time during the year and annual rewards or penalties
were issued at end of year. The incentive scheme was working effectively to motivate the directors, supervisors
and executives.
71
Bengang Steel Plates Co., Ltd. Annual Report 2015
IX. Internal control situations
1.Specific situations on major defects of internal control discovered during report period
√Yes □ No
About the significant Defects of the internal control found in the internal control self-assessment report in the reporting period
No major defects within the reporting period
2.Self-evaluation report on internal control
Disclosing date of internal control auditing
April 29,2016
report full text
Index of the internal control auditing report
http//www.cninfo.com.cn
full text
Standards of Defects Evaluation
Category Financial Report Non-financial Report
1. Material deficiencies: The frauds made by
the directors, or supervisors, or senior
management personnel that leads to
1. Material deficiencies: Major errors
significant losses and adverse effects to the
caused by decision-making procedure;
company; the supervisions made by the
the important business lacks institutional
company's audit committee and the audit
control or has a systematic failure while
department on the companys external
lacking effective compensatory control;
financial report and the internal control of
serious drain of senior and middle level
the financial report are invalid. 2. Significant
management personnel and senior
deficiencies: Not in accordance with
technical staff; serious drain of business
generally accepted accounting standards
personnel in key posts; the results of
selection and application of accounting
internal control evaluation, especially the
Qualitative criteria policies; Not established anti-fraud
significant deficiencies have not been
procedures and control measures; Not
corrected; other circumstances that have
established the corresponding control
big negative impact on the company. 3.
mechanism or not implemented the
General deficiencies: low-efficiency on
corresponding compensatory control on the
the decision-making process; existed
accounting treatment of non conventional or
defects in the ordinary business
special deals; there are one or more defects
institution or system; serious drain of
in the process control of the final financial
business personnel in general posts;
report and which leads to cannot reasonably
general deficiencies that have not been
guaranteeing the financial report compiled to
corrected.
achieve the goal of being true and accurate.
3: General deficiencies: the internal control
deficiencies except those constitute the
72
Bengang Steel Plates Co., Ltd. Annual Report 2015
material deficiencies and the significant
deficiencies.
1: Material deficiencies: 1)
1: Material deficiencies: 1) misstatement≥5% of the total profits; 2)
misstatement≥5% of the total profits; 2) misstatement≥3% of the total assets; 3)
misstatement≥3% of the total assets; 3) misstatement≥1% of the total operating
misstatement≥1% of the total operating income; 4) misstatement≥1% of the total
income; 4) misstatement≥1% of the total amount of the owners equity. 2.
amount of the owners equity. 2. Significant Significant deficiencies: 1)3% of the
deficiencies: 1)3% of the total profits total profits ≤misstatement＜5% of the
≤misstatement＜5% of the total profits; 2) total profits; 2) 0.5% of the total assets
0.5% of the total assets ≤misstatement＜3% ≤misstatement＜3% of the total assets;
of the total assets; 3) 0.5% of the total 3) 0.5% of the total operating income
Quantitative criteria
operating income ≤misstatement＜1% of the ≤misstatement＜1% of the total
total operating income; 4) 0.5% of the total operating income; 4) 0.5% of the total
amount of the owners equity ≤misstatement amount of the owners equity
＜1% of the total amount of the owners ≤misstatement＜1% of the total amount
equity. 3. General deficiencies: of the owners equity. 3. General
1)misstatement＜3% of the total profits; 2) deficiencies: 1)misstatement＜3% of the
misstatement＜0.5% of the total assets; 3) total profits; 2) misstatement＜0.5% of
misstatement＜0.5% of the total operating the total assets; 3) misstatement＜0.5%
income; 4) misstatement＜0.5% of the total of the total operating income; 4)
amount of the owners equity. misstatement＜0.5% of the total amount
of the owners equity.
Number of major defects in financial
reporting（a）
Number of major defects in non financial
reporting (a)
Number of important defects in financial
reporting（a）
Number of important defects in non
financial reporting（a）
X. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
We acknowledge that Bengang Bancai has been conducting effective internal control in all material aspects complying with
“Fundamental Rules of Enterprise Internal Control” up to December 31, 2015.
Disclosure date of audit report
Disclosure
of internal control (full-text)
73
Bengang Steel Plates Co., Ltd. Annual Report 2015
Index of audit report of
April 29,2016
internal control (full-text)
Internal audit reports opinion http//www.cninfo.com.cn
Type of audit report on internal
Unqualified auditors report
control
Whether there is significant
No
defectin non-financial report
Has the CPAs issued a qualified auditors report of internal control .
□ Yes √No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of
Directors
√Yes □No
X. Financial Report
I. Audit report
Type of auditing opinion Standard report without qualified opinion
Date of issue of the auditors Report April 27,2016
Name of the CPA BDO China Shu Lun Pan Certified Public Accountants LLP
Name of the certified accountants Wu Xue, Zhang Huice
Auditors’ Report
To all shareholders of Bengang Steel Plate Co., Ltd.
We have audited the accompanying financial statements of Bengang Steel Plates Co., Ltd. (hereinafter referred to
as “the Company”) which comprise the consolidated statement of financial position and statement of financial
position as at 31 December 2015, the consolidated statement of comprehensive income and statement of
comprehensive income, the consolidated statement of changes in equity and statement of changes in equity, the
consolidated statement of cash flows and statement of cash flows for the year then ended, and notes to the
financial statements.
I. Executives’ responsibilities on the Financial Statements
Preparing of the Financial Statements according to Enterprise Accounting Standard is the responsibility of the
management of the Company. This responsibility is including: (1) to prepare the financial statements according to
74
Bengang Steel Plates Co., Ltd. Annual Report 2015
the accounting standard, and ensure its fair reflection of business position; (2) to design, implement and maintain
the internal control system related to producing of the Financial Statements, to prevent the Financial Statements
from major false presentation due to cheating or error
II. Responsibilities of the CPA
Our responsibilities are to issue auditing opinions on the Financial Statements basing on the auditing works weve
done on them. We carried out the auditing works with compliance to Chinese CPA Auditing Standard, which
requires us to plan and implement our works on the basis of professional ethic standards, and obtain reasonable
guarantee that the Financial Statements are free of major false statements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, we consider the internal control relevant to the entitys preparation of financial statements in order to
design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting polices used and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
III. Auditors’ Opinions
In our opinion, the financial statements of Bengang Steel Plates Co., Ltd. present fairly, in all material respects,
the consolidated financial position and financial position of the Company as at 31 December 2015, and the
consolidated results of operations and results of operations and the consolidated cash flows and cash flows of the
Company for the year then ended in accordance with the requirements of Accounting standards for Business
Enterprises.
Shu Lun Pan Certified Public Accountant LLP CPA China: Wu Xue
(Limited Liability Partnership)
Shanghai. China CPA China: Zhang Huice
April 27, 2016
II. Financial Statements
Statement in Financial Notes are carried in RMB/CNY
75
Bengang Steel Plates Co., Ltd. Annual Report 2015
1.Consolidated Balance sheet
Prepared by :Bengang Steel Plates Co., Ltd.
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 5,140,480,509.97 9,792,940,409.40
Settlement provision
Outgoing call loan
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable 2,449,682,561.16 2,089,039,261.13
Account receivable 488,584,624.72 487,767,042.22
Prepayments 569,851,950.69 1,236,314,004.73
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable 3,524,615.12 7,011,095.89
Dividend receivable
Other account receivable 151,668,877.26 257,708,098.03
Repurchasing of financial assets
Inventories 8,601,734,442.42 11,008,413,817.92
Assets held for sales
Non-current asset due in 1 year
Other current asset 431,360,541.21 457,504,509.43
Total of current assets 17,836,888,122.55 25,336,698,238.75
Non-current assets：
Loans and payment on others behalf
disbursed
Disposable financial asset 20,271,278.63 20,271,278.63
Expired investment in possess
Long-term receivable
Long term share equity investment
76
Bengang Steel Plates Co., Ltd. Annual Report 2015
Property investment
Fixed assets 20,046,254,726.74 17,144,282,253.99
Construction in progress 5,646,624,293.27 6,126,175,722.67
Engineering material 4,152,880.79 90,221,101.46
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 265,520,912.57 271,459,969.75
R & D petrol
Goodwill
Long-germ expenses to be amortized
Differed income tax asset 641,931,130.78 181,494,465.42
Other non-current asset
Total of non-current assets 26,624,755,222.78 23,833,904,791.92
Total of assets 44,461,643,345.33 49,170,603,030.67
Current liabilities
Short-term loans 18,139,885,596.60 18,187,945,675.93
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable 2,110,511,950.79 822,581,591.46
Account payable 5,015,900,664.47 8,780,948,804.18
Advance payment 1,815,443,452.05 3,144,418,091.52
Selling of repurchased financial assets
Fees and commissions receivable
Employees wage payable 36,455,143.76 35,383,951.55
Tax payable 45,194,528.35 32,323,181.76
Interest payable 70,958,686.96 26,935,067.99
Dividend payable
Other account payable 444,734,704.90 469,316,015.83
Reinsurance fee payable
77
Bengang Steel Plates Co., Ltd. Annual Report 2015
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year 1,434,004,649.14 591,740,000.00
Other current liability
Total of current liability 29,113,089,377.02 32,091,592,380.22
Non-current liabilities：
Long-term loan 1,005,919,974.09 814,627,465.85
Bond payable 1,490,352,572.75
Including：preferred stock
Sustainable debt
Long-term payable
Long-term payable employeess
remuneration
Special payable
Expected liabilities
Deferred income 413,188,000.00 427,524,000.00
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities 2,909,460,546.84 1,242,151,465.85
Total of liability 32,022,549,923.86 33,333,743,846.07
Owners equity
Share capital 3,136,000,000.00 3,136,000,000.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 9,114,845,542.05 9,114,845,542.05
Less：Shares in stock
Other comprehensive income
Special reserves 393,372.05 430,777.94
Surplus reserves 961,105,529.85 961,105,529.85
Common risk provision
Undistributed profit -1,278,244,071.93 2,172,180,473.24
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Bengang Steel Plates Co., Ltd. Annual Report 2015
Total of owners equity belong to the
11,934,100,372.02 15,384,562,323.08
parent company
Minority shareholders equity 504,993,049.45 452,296,861.52
Total of owners equity 12,439,093,421.47 15,836,859,184.60
Total of liabilities and owners equity 44,461,643,345.33 49,170,603,030.67
Legal Representative: Zhao Zhongmin Person in charge of accounting:Han Ge Accounting Dept Leader:Wang
Shaoyu
2. Balance sheet of Parent Company
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 4,921,089,319.57 9,530,304,140.51
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable 2,298,691,410.40 1,863,613,673.54
Account receivable 449,193,422.02 388,842,194.63
Prepayments 549,553,039.03 1,126,416,683.45
Interest receivable 3,524,615.12 7,011,095.89
Dividend receivable
Other account receivable 229,428,159.94 302,622,013.53
Inventories 7,452,873,949.34 9,215,120,654.72
Assets held for sales
Non-current asset due in 1 year
Other current asset 387,259,423.54 404,119,874.38
Total of current assets 16,291,613,338.96 22,838,050,330.65
Non-current assets：
Disposable financial asset 18,303,673.00 18,303,673.00
Expired investment in possess
Long-term receivable
Long term share equity investment 1,700,981,902.16 1,690,981,902.16
Property investment
79
Bengang Steel Plates Co., Ltd. Annual Report 2015
Fixed assets 17,179,043,906.45 14,089,675,221.83
Construction in progress 5,646,077,292.11 6,074,588,463.12
Engineering material 4,134,138.91 90,221,101.46
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 158,694,589.82 162,000,727.11
R & D petrol
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 562,072,018.42 81,964,982.51
Other non-current asset
Total of non-current assets 25,269,307,520.87 22,207,736,071.19
Total of assets 41,560,920,859.83 45,045,786,401.84
Current liabilities
Short-term loans 16,798,213,600.00 16,028,552,000.00
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable 1,651,808,822.92 732,475,382.04
Account payable 5,263,012,477.37 8,914,580,556.14
Advance payment 1,957,484,054.73 2,639,010,215.36
Employees wage payable 34,194,188.88 32,213,350.61
Tax payable 9,986,022.56 7,979,826.50
Interest payable 70,113,698.63 5,080,000.00
Dividend payable
Other account payable 324,906,037.82 327,382,843.61
Liabilities held for sales
Non-current liability due in 1 year 1,434,004,649.14 308,740,000.00
Other current liability
Total of current liability 27,543,723,552.05 28,996,014,174.26
Non-current liabilities：
Long-term loan 1,005,919,974.09 814,627,465.85
Bond payable 1,490,352,572.75
80
Bengang Steel Plates Co., Ltd. Annual Report 2015
Including：preferred stock
Sustainable debt
Long-term payable
Employees wage payable
Special payable
Expected liabilities
Deferred income 413,188,000.00 427,524,000.00
Deferred income tax liability
Other non-current liabilities
Total of Non-current liabilities 2,909,460,546.84 1,242,151,465.85
Total of liability 30,453,184,098.89 30,238,165,640.11
Owners equity
Share capital 3,136,000,000.00 3,136,000,000.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 8,694,693,859.93 8,694,693,859.93
Less：Shares in stock
Other comprehensive income
Special reserves 393,372.05 430,777.94
Surplus reserves 961,105,529.85 961,105,529.85
Undistributed profit -1,684,456,000.89 2,015,390,594.01
Total of owners equity 11,107,736,760.94 14,807,620,761.73
Total of liabilities and owners equity 41,560,920,859.83 45,045,786,401.84
3.Consolidated Income Statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 29,253,638,605.80 41,422,088,025.70
Incl：Business income 29,253,638,605.80 41,422,088,025.70
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 33,094,102,341.68 41,115,934,904.54
81
Bengang Steel Plates Co., Ltd. Annual Report 2015
Incl：Business cost 29,811,895,016.85 38,489,119,026.43
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 51,569,621.87 118,161,457.86
Sales expense 919,110,499.37 863,079,137.09
Administrative expense 733,933,299.88 899,624,299.29
Financial expenses 1,063,317,455.47 717,292,853.39
Asset impairment loss 514,276,448.24 28,658,130.48
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 7,226,589.08 20,845,473.00
Incl: investment gains from affiliates
Gains from currency exchange（“-”for
loss）
III. Operational profit（“-”for loss） -3,833,237,146.80 326,998,594.16
Add ：Non-operational income 176,054,356.57 37,115,131.68
Including：Income from disposal of
21,206,096.82 7,296,356.96
non-current assets
Less：Non business expenses 24,135,783.17 10,297,285.52
Incl：Loss from disposal of non-current
24,124,620.55 10,297,285.52
assets
IV.Total profit(“-”for loss) -3,681,318,573.40 353,816,440.32
Less：Income tax expenses -440,390,216.16 38,943,288.16
V. Net profit -3,240,928,357.24 314,873,152.16
Net profit attributable to the owners of
-3,293,624,545.17 232,804,820.19
parent company
Minority shareholders equity 52,696,187.93 82,068,331.97
VI. Other comprehensive income
Net of profit of other comprehensive inco
me attributable to owners of the parent co
mpany.
82
Bengang Steel Plates Co., Ltd. Annual Report 2015
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
（II）
Other comprehensive income that will b
e reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2.Gains and losses from changes in fair v
alue available for sale financial assets
3.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
4.The effective portion of cash flow hedg
es and losses
5.Translation differences in currency fina
ncial statements
6.Other
7.Net of profit of other comprehensive i
ncome attributable to Minority
shareholders equity
VII. Total comprehensive income -3,240,928,357.24 314,873,152.16
Total comprehensive income attributable
-3,293,624,545.17 232,804,820.19
to the owner of the parent company
Total comprehensive income attributable
52,696,187.93 82,068,331.97
minority shareholders
VIII. Earnings per share
（I）Basic earnings per share -1.050 0.074
(II)Diluted earnings per share -1.050 0.074
The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 0, last period the combined party realized RMB 0.
Legal Representative:Zhao Zhongmin Person in charge of accounting：Han Ge Accounting Dept Leader:
Wang Shaoyu
83
Bengang Steel Plates Co., Ltd. Annual Report 2015
4. Income statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I. Income from the key business 28,523,101,618.99 41,634,258,361.21
Incl：Business cost 29,769,289,938.38 39,551,413,702.03
Business tax and surcharge 25,627,202.18 92,196,044.43
Sales expense 730,692,018.11 679,034,187.84
Administrative expense 675,861,313.03 833,935,376.24
Financial expenses 986,248,046.33 596,662,880.18
Asset impairment loss 514,222,418.93 28,039,768.05
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 7,226,589.08 172,968,147.30
Incl: investment gains from affiliates
II. Operational profit（“-”for loss） -4,171,612,728.89 25,944,549.74
Add ：Non-operational income 172,498,611.64 33,814,507.51
Including：Income from disposal of
19,820,758.05 7,287,133.61
non-current assets
Less：Non business expenses 24,039,513.56 10,297,285.52
Incl：Loss from disposal of non-current
24,039,513.56 10,297,285.52
assets
III.Total profit(“-”for loss) -4,023,153,630.81 49,461,771.73
Less：Income tax expenses -480,107,035.91 5,347,510.63
IV. Net profit（“-”for net loss） -3,543,046,594.90 44,114,261.10
V.Net of profit of other comprehensive i
ncome
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.
（II）
84
Bengang Steel Plates Co., Ltd. Annual Report 2015
Other comprehensive income that will b
e reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.
2.Gains and losses from changes in fair
value available for sale financial assets
3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets
4.The effective portion of cash flow hed
ges and losses
5.Translation differences in currency fin
ancial statements
6.Other
VI. Total comprehensive income -3,543,046,594.90 44,114,261.10
VII. Earnings per share：
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
23,411,443,776.75 27,081,903,407.76
rending of services
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
85
Bengang Steel Plates Co., Ltd. Annual Report 2015
Net increase of amount from disposal
financial assets that measured by fair
value and with variation reckoned into
current gains/losses
Net increase of inter-bank fund
received
Net increase of trade financial asset
disposal
Net increase of repurchasing business
Tax returned 797,597,007.61 125,801,169.55
Other cash received from business
362,548,861.72 355,359,346.31
operation
Sub-total of cash inflow 24,571,589,646.08 27,563,063,923.62
Cash paid for purchasing of
24,253,340,775.32 21,366,796,915.86
merchandise and services
Net increase of client trade and advance
Net increase of savings n 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 1,927,960,219.83 2,256,955,412.05
Taxes paid 343,995,637.61 527,920,890.61
Other cash paid for business activities 351,298,981.42 543,250,610.24
Sub-total of cash outflow from business
26,876,595,614.18 24,694,923,828.76
activities
Cash flow generated by business
-2,305,005,968.10 2,868,140,094.86
operation, net
II.Cash flow generated by investing
Cash received from investment
1,747,000,000.00 8,214,370,000.00
retrieving
Cash received as investment gains 7,226,589.08 20,845,473.00
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 21,753,471.24 4,317,974.80
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
86
Bengang Steel Plates Co., Ltd. Annual Report 2015
Other investment-related cash received
Sub-total of cash inflow due to
1,775,980,060.32 8,239,533,447.80
investment activities
Cash paid for construction of
fixed assets, intangible assets 3,472,745,508.10 642,437,425.53
and other long-term assets
Cash paid as investment 1,747,000,000.00 7,684,370,000.00
Net increase of loan against pledge
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
activities
Sub-total of cash outflow due to
5,219,745,508.10 8,326,807,425.53
investment activities
Net cash flow generated by investment -3,443,765,447.78 -87,273,977.73
III.Cash flow generated by financing
Cash received as investment
Incl: Cash received as investment from
minor shareholders
Cash received as loans 24,859,581,641.78 20,842,507,551.86
Cash received from bond placing 1,486,500,000.00
Other financing –related ash received 800,000,000.00
Sub-total of cash inflow from financing
27,146,081,641.78 20,842,507,551.86
activities
Cash to repay debts 24,800,789,257.57 17,417,163,487.98
Cash paid as dividend, profit, or
980,727,660.92 965,170,022.92
interests
Incl: Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing activities 399,397,047.75 346,082,054.07
Sub-total of cash outflow due to
26,180,913,966.24 18,728,415,564.97
financing activities
Net cash flow generated by financing 965,167,675.54 2,114,091,986.89
IV. Influence of exchange rate
69,352,483.25 -20,346,548.36
alternation on cash and cash equivalents
V.Net increase of cash and cash
-4,714,251,257.09 4,874,611,555.66
equivalents
87
Bengang Steel Plates Co., Ltd. Annual Report 2015
Add: balance of cash and cash
9,327,034,030.07 4,452,422,474.41
equivalents at the beginning of term
VI ..Balance of cash and cash
4,612,782,772.98 9,327,034,030.07
equivalents at the end of term
6. Cash flow statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
23,427,109,010.65 29,100,336,040.94
rending of services
Tax returned 711,467,848.16 98,742,453.92
Other cash received from business
210,299,707.85 438,335,184.14
operation
Sub-total of cash inflow 24,348,876,566.66 29,637,413,679.00
Cash paid for purchasing of
25,774,210,167.57 23,773,038,481.99
merchandise and services
Cash paid to staffs or paid for staffs 1,817,930,712.94 2,139,961,256.89
Taxes paid 154,610,526.07 327,014,362.65
Other cash paid for business activities 60,248,461.32 480,494,224.57
Sub-total of cash outflow from business
27,806,999,867.90 26,720,508,326.10
activities
Cash flow generated by business
-3,458,123,301.24 2,916,905,352.90
operation, net
II.Cash flow generated by investing
Cash received from investment
1,747,000,000.00 7,440,000,000.00
retrieving
Cash received as investment gains 7,226,589.08 16,389,712.34
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 21,713,471.24 4,317,974.80
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
1,775,940,060.32 7,460,707,687.14
investment activities
Cash paid for construction of 3,446,420,670.56 636,628,096.53
88
Bengang Steel Plates Co., Ltd. Annual Report 2015
fixed assets, intangible assets
and other long-term assets
Cash paid as investment 1,757,000,000.00 6,910,000,000.00
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
activities
Sub-total of cash outflow due to
5,203,420,670.56 7,546,628,096.53
investment activities
Net cash flow generated by investment -3,427,480,610.24 -85,920,409.39
III.Cash flow generated by financing
Cash received as investment
Cash received as loans 23,419,954,378.62 18,594,014,000.00
Cash received from bond placing 1,486,500,000.00
Other financing –related ash received 800,000,000.00
Sub-total of cash inflow from financing
25,706,454,378.62 18,594,014,000.00
activities
Cash to repay debts 22,260,440,315.08 15,336,096,665.14
Cash paid as dividend, profit, or
901,348,956.26 856,130,197.71
interests
Other cash paid for financing activities 329,226,064.22 310,194,469.10
Sub-total of cash outflow due to
23,491,015,335.56 16,502,421,331.95
financing activities
Net cash flow generated by financing 2,215,439,043.06 2,091,592,668.05
IV. Influence of exchange rate
69,329,673.35 -17,606,654.45
alternation on cash and cash equivalents
V.Net increase of cash and cash
-4,600,835,195.07 4,904,970,957.11
equivalents
Add: balance of cash and cash
9,090,466,146.15 4,185,495,189.04
equivalents at the beginning of term
VI ..Balance of cash and cash
4,489,630,951.08 9,090,466,146.15
equivalents at the end of term
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Items Amount in this period
89
Bengang Steel Plates Co., Ltd. Annual Report 2015
Owners equity Attributable to the Parent Company
Other Equity
Minor
instrusment Other Commo Total of
Share Less: Speciali Attribut shareho
Capital Compre Surplus n risk owners
Capita prefer Shares zed able lders
reserves hensive reserves provisio equity
Sustai
l red Other in stock reserve profit equity
nable Income n
stock
debt
3,136, 9,114,8 2,172,1 15,836,
I.Balance at the 430,777 961,105 452,296
000,00 45,542. 80,473. 859,184
end of last year .94 ,529.85 ,861.52
0.00 05 24 .60
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the 3,136, 9,114,8 2,172,1 15,836,
430,777 961,105 452,296
beginning of 000,00 45,542. 80,473. 859,184
.94 ,529.85 ,861.52
current year 0.00 05 24 .60
-3,450,4 -3,397,7
III.Changed in the -37,405. 52,696,
24,545. 65,763.
current year 89 187.93
17 13
（1）Total -3,293,6 -3,240,9
52,696,
comprehensive 24,545. 28,357.
187.93
income 17 24
（II）Investment
or decreasing of
capital by owners
1．Ordinary Share
s invested by hare
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Amount of
shares paid and
accounted as
90
Bengang Steel Plates Co., Ltd. Annual Report 2015
owners equity
4．Other
-156,80 -156,80
（III）Profit
0,000.0 0,000.0
allotment
0 0
1.Providing of
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to the -156,80 -156,80
owners (or 0,000.0 0,000.0
shareholders) 0 0
4．Other
(IV) 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. Other
(V). Special -37,405. -37,405.
reserves 89 89
1. Provided this 34,967, 34,967,
year 129.18 129.18
35,004, 35,004,
2．Used this term
535.07 535.07
（VI）Other 0.00
3,136, 9,114,8 -1,278,2 12,439,
IV. Balance at the 393,372 961,105 504,993
000,00 45,542. 44,071. 093,421
end of this term .05 ,529.85 ,049.45
0.00 05 93 .47
Amount in last year
91
Bengang Steel Plates Co., Ltd. Annual Report 2015
In RMB
Amount in last year
Owners equity Attributable to the Parent Company
Other Equity
Minor
instrusment Total of
Items Other Commo
Share Less: Speciali Attribut shareho
Capital Compre Surplus n risk owners
Capita prefer Shares zed able lders
Sustai reserves hensive reserves provisio equity
l red Other in stock reserve profit equity
nable Income n
stock
debt
3,136, 9,114,8 2,100,5 15,678,
I.Balance at the 210,972 956,694 370,228
000,00 45,542. 87,079. 566,227
end of last year .68 ,103.74 ,529.55
0.00 05 16 .18
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the 3,136, 9,114,8 2,100,5 15,678,
210,972 956,694 370,228
beginning of 000,00 45,542. 87,079. 566,227
.68 ,103.74 ,529.55
current year 0.00 05 16 .18
III.Changed in the 219,805 4,411,4 71,593, 82,068, 158,292
current year .26 26.11 394.08 331.97 ,957.42
（1）Total
232,804 82,068, 314,873
comprehensive
,820.19 331.97 ,152.16
income
（II）Investment
or decreasing of
capital by owners
1．Ordinary Share
s invested by hare
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
92
Bengang Steel Plates Co., Ltd. Annual Report 2015
owners (or
shareholders)
4．Other
-161,21 -156,80
（III）Profit 4,411,4
1,426.1 0,000.0
allotment 26.11
1 0
1.Providing of 4,411,4 -4,411,4
surplus reserves 26.11 26.11
2.Providing of
common risk
provisions
3．Allotment to the -156,80 -156,80
owners (or 0,000.0 0,000.0
shareholders) 0 0
4．Other
(IV) 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. Other
(V) Special 219,805 219,805
reserves .26 .26
1. Provided this 35,149, 35,149,
year 380.86 380.86
34,929, 34,929,
2．Used this term
575.60 575.60
（VI）Other
3,136, 9,114,8 2,172,1 15,836,
IV. Balance at the 430,777 961,105 452,296
000,00 45,542. 80,473. 859,184
end of this term .94 ,529.85 ,861.52
0.00 05 24 .60
93
Bengang Steel Plates Co., Ltd. Annual Report 2015
8. Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Amount in this period
Other Equity instrusment
Other
Less: Total of
Items Share Capital Compreh Specialize Surplus Attribut
preferre Sustain Shares in able owners
Capital Other reserves ensive d reserve reserves profit
d stock able stock equity
Income
debt
2,015,3
3,136,00 8,694,693 430,777.9 961,105,5 14,807,62
90,594.
I.Balance at the 0,000.00 ,859.93 4 29.85 0,761.73
end of last year 01
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the 2,015,3
3,136,00 8,694,693 430,777.9 961,105,5 14,807,62
beginning of 90,594.
0,000.00 ,859.93 4 29.85 0,761.73
current year 01
-3,699,8
III.Changed in the -37,405.8 -3,699,88
46,594.
current year 9 4,000.79
90
（1）Total -3,543,0
-3,543,04
comprehensive 46,594.
6,594.90
income 90
（II）Investment or
decreasing of
capital by owners
1．Ordinary Share
s invested by hareh
olders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
94
Bengang Steel Plates Co., Ltd. Annual Report 2015
4．Other
-156,80
（III）Profit -156,800,
0,000.0
allotment 000.00
0
1.Providing of
surplus reserves
2．Allotment to the -156,80
-156,800,
owners (or 0,000.0
000.00
shareholders) 0
3．Other
(IV)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. Other
(V) Special -37,405.8 -37,405.8
reserves 9 9
1. Provided this 34,967,12 34,967,12
year 9.18 9.18
35,004,53 35,004,53
2．Used this term
5.07 5.07
（VI）Other
-1,684,4
IV. Balance at the 3,136,00 8,694,693 393,372.0 961,105,5 11,107,73
56,000.
end of this term 0,000.00 ,859.93 5 29.85 6,760.94
89
Amount in last year
In RMB
Amount in last year
Items
Share Other Equity instrusment Capital Less: Other Specialize Surplus Attribut Total of
95
Bengang Steel Plates Co., Ltd. Annual Report 2015
Capital reserves Shares in Compreh d reserve reserves able owners
profit
preferre Sustain stock ensive equity
Other
d stock able Income
debt
2,132,4
3,136,00 8,694,693 210,972.6 956,694,1 14,920,08
87,759.
I.Balance at the 0,000.00 ,859.93 8 03.74 6,695.37
end of last year 02
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the 2,132,4
3,136,00 8,694,693 210,972.6 956,694,1 14,920,08
beginning of 87,759.
0,000.00 ,859.93 8 03.74 6,695.37
current year 02
-117,09
III.Changed in the 219,805.2 4,411,426 -112,465,
7,165.0
current year 6 .11 933.64
1
（1）Total
44,114, 44,114,26
comprehensive
261.10 1.10
income
（II）Investment or
decreasing of
capital by owners
1．Ordinary Share
s invested by hareh
olders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
-161,21
（III）Profit 4,411,426 -156,800,
1,426.1
allotment .11 000.00
1
1.Providing of 4,411,426 -4,411,4
surplus reserves .11 26.11
96
Bengang Steel Plates Co., Ltd. Annual Report 2015
2．Allotment to the -156,80
-156,800,
owners (or 0,000.0
000.00
shareholders) 0
3．Other
(IV)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. Other
(V) Special 219,805.2 219,805.2
reserves 6 6
1. Provided this 35,149,38 35,149,38
year 0.86 0.86
34,929,57 34,929,57
2．Used this term
5.60 5.60
（VI）Other
2,015,3
IV. Balance at the 3,136,00 8,694,693 430,777.9 961,105,5 14,807,62
90,594.
end of this term 0,000.00 ,859.93 4 29.85 0,761.73
01
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, the Company issued 400,000,000 B-shares at RMB2.38 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 totalled to 1,136,000,000 shares including 616,000,000 shares held by the promoter.
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Bengang Steel Plates Co., Ltd. Annual Report 2015
As approved by China Securities Regulatory Commission, the Company issued 400,000,000 B-shares at RMB2.38 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 totalled to 1,136,000,000 shares including 616,000,000 shares held by the promoter.
On March 14 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. However the total of capital shares of
Bengang Steel Plate was not changed through the share equity relocation action.
China Securities Regulatory Commission issued Zheng-Jian-Gong-Si-Zi [2006] 126 on June 30th 2006 and served to
the Company on July 6th 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] 127 issued by China Securities Regulatory Committee, and was
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 (account for 82.12% of the total capital
shares of the Company). On August 28 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
September 28 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 on October 9th 2006, with face value of RMB1.00 per share and the
placing price was RMB4.6733 per share.
Up to December 31, 2015, the capital shares of Bengang Steel Plates Co., Ltd were amounted to 3,136,000,000 shares. The
business license was numbered 210000004931633. The registered address is: 18th Gangtie Road, Pingshan, Benxi, Liaoning
Province. The registered capital is RMB3,136,000,000. The legal representative is Zhao Zhongmin.
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.
The company belongs to the ferrous metal smelting and rolling processing industry sectors. The main business activities of
production and sales of ferrous metal products.
The above financial accounts were approved by the Board of Directors on April 27, 2016.
As of December 31, 2015, the consolidating range of the consolidated accounts is covering the following
subsidiaries:
Name of the subsidiaries
Guangzhou Bengang Trade Co., Ltd.
Shanghai Bengang Metallurgy Tech. Ltd.
Bengang Steel Plate Liaoyang Orel Ball Co., Ltd.
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Bengang Steel Plates Co., Ltd. Annual Report 2015
Dalian Benruitong Automobile Material Technologies Co., Ltd.
Changchun Bengang Steel Sales Ltd.
Haerbin Bengang International Trading Ltd.
Nanjing Bengang Steel Material Sales Ltd.
Wuxi Bengang Steel Sales Ltd.
Xiamen Bengang Steel Sales Ltd.
Yantai Bengang Steel Sales Ltd.
Tianjin Bengang Steel Trading Ltd.
Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd.
Benxi Bengang Steel Sales Ltd.
Shenyang Bengang Metallurgical Technology Co., Ltd.
The scope of the consolidated financial statements of the current period has been added the newly
established subsidiaries of Benxi Bengang Steel Sales Co., Ltd and Shenyang Bengang
Metallurgy Technology Co., Ltd.
IV. Basis of Preparation
1. Basis of preparation
The Company prepares its financial statements on perpetual basis and accrual basis, with accordance with the Enterprise
Accounting Standard issued by the Department of Finance – the basic rules and multiple principles, as well as the proceeding
instructions, interpretations, and other rules (regarded collectively as “The Enterprise Accounting Standard”, and also the Information
Disclosure Rules No.15 – General rules of financial statements issued by China Securities Regulatory Commission.
2. Perpetual operation
The Company is in normal and healthy operation , 12 months have since continued viability of the reporting period.
V. Material Accounting Policies and Accounting Estimations
Note to detailed accounting policies and estimations:
The following contents are covering the detailed accounting policies and estimations made in accordance with the business practice
of the Company.
1. Statement of compliance to the Enterprise Accounting Standard
The financial statements present truly and completely the financial position, operation results and cash flow of the
company.
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Bengang Steel Plates Co., Ltd. Annual Report 2015
2. Accounting period
A fiscal year starts from January 1 and ends at December 31 of a calendar year.
3. Business circle
The Companys business circle covers 12 months.
4. Standard currency for bookkeeping
The Company uses Renminbi (RMB) as the standard currency for book keeping.
5. Accounting treatment of the merging entities under common control and different control
1. Business combination under common control
The assets and liabilities that the Company acquired in a business combination shall be measured on the basis of their carrying
amount of aquirees assets, liabilities (as well as the goodwill arising from the business combination) in the consolidated
financial statement of the ultimate controller on the combining date.
As for the balance between the carrying amount of the net assets obtained by the Company and the carrying amount of the
consideration paid by it (or the total par value of the shares issued), capital reserve needs to be adjusted. If the capital reserve is
not sufficient, any excess shall be adjusted against retained earnings.
Business combination 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 recognize the positive balance between the combination costs and the fair value of the identifiable net assets
it obtains from the acquiree as goodwill. The Company shall treat the negative balance between the combination costs and the
fair value of the identifiable net assets it obtains from the acquiree into the profits and losses of the current period.
The intermediary costs and relevant management fee for the business combination now under same control paid by the acquirer,
including the expenses for audit, assessment and legal services, shall be recorded into the profits and losses at the current period.
The transaction expenses for the issuance of equity securities for the business combination shall be recorded into the initial
recognition amount of equity securities.
6. Preparing method of consolidated financial statements
1. Consolidation range
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.
2. Procedure of consolidation
The consolidated financial statements shall be presented by the parent based on the financial statements of the
parent and its subsidiaries, and using other related information. When preparing consolidated financial
statements, the parent shall consider the entire group as an accounting entity, adopt uniform accounting
policies and apply the requirements of Accounting Standard for Business Enterprises related to recognition,
measurement and presentation. The consolidated financial statements shall reflect the overall financial
position, operating results and cash flows of the group.
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Bengang Steel Plates Co., Ltd. Annual Report 2015
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 now under common control, the financial statements are adjusted according to fair
value of identifiable net assets on the acquisition date.
For subsidiaries through acquisition that are under common control, the assets, liabilities (as well as the goodwill arising from
purchasing the subsidiary by the ultimate controller) are adjusted according to book value of net assets in the financial
statements of the ultimate controller.
The owners interests, profit or loss, and comprehensive income of the subsidiary attributable to the non-controlling
shareholders shall be presented separately in the shareholders equity of the consolidated balance sheet and under the item of net
profit of the consolidated statement of comprehensive income and under the item of total comprehensive income. Where losses
assumed by the minority exceed the minoritys interests in the beginning equity of a subsidiary, the excess shall be charged
against the minoritys interests.
(1) Increase of new subsidiary and business
If the Company has a new subsidiary due to business combination under common control during a reporting period, it shall
adjust the beginning balance in the consolidated statement of financial position when preparing consolidated statement of
financial position. The revenue, expenses and profits of the subsidiaries from the acquisition date to the end of the reporting
period are included in the 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 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 has been in existence since the date the ultimate controlling party first obtained
control.
When the Company becomes capable of exercising control over an investee under common control due to additional
investment or other reasons, Adjustment shall be made as if the reporting entity after the combination has been in existence
since the date the ultimate controlling party first obtained control. The investment income recognized between date of
previously obtaining equity investment and the date the acquiree and acquirer are under common control, which is later, and
the combining date, other comprehensive income and other changes of net assets arising from the equity investment
previously-held before obtaining the control the acquiree shall be adjusted against the prior retained earnings of the
comparative financial statements and the current profit or loss respectively.
If it is now under common control, the Company shall not adjust the beginning balance in the consolidated statement of
financial position when preparing consolidated statement of financial position. The revenue, expenses and profits of the
subsidiaries from the acquisition date to the end of the reporting period are included in the parent 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 Companys consolidated statement of cash flows.
When the Company becomes capable of exercising control over an investee now under common control due to additional
investment or other reasons, the acquirer shall remeasure its previously held equity interest in the acquiree to its fair value at
the acquisition date. The difference between the fair value and the carrying amount shall be recognized as investment income
for the period when the acquisition takes place. When the previously-held equity investment is accounted for under the
equity method, any other comprehensive income previously recognized in relation to the acquirees equity changes shall be
transferred to profit or loss for the current period when the acquisition takes place. Other comprehensive income arising from
remeasurement of defined benefit plan is excluded.
(2) Disposing subsidiary or business
1. General treatment
If the Company disposes a subsidiary during a reporting period, the revenue, expenses and profits of the subsidiary from
the beginning of the reporting period to disposal date are included in the Companys consolidated statement of
comprehensive income. The cash flow of the subsidiaries from the beginning of the reporting period to disposal date is
included in the Companys consolidated statement of cash flows.
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Bengang Steel Plates Co., Ltd. Annual Report 2015
When the Company loses control over an investee due to partial disposal or other reasons, the acquirer shall remeasure
the remaining equity interests in the acquiree to its fair value at the acquisition date. The difference, between sums of
consideration received for disposal equity shares and fair value of the remaining shares, and sums of share of net assets of
the subsidiary calculated continuously from the acquisition date or the combination date based on the previous
shareholding proportion and goodwill, shall be recognized as investment income for the period when the Company loses
control over acquiree. When the previously-held equity investment is accounted for under the equity method, any other
comprehensive income previously recognized in relation to the acquirees equity changes, and other equity changes rather
than changes from net profit, other comprehensive income and profit distribution, shall be transferred to investment
income for the current period when the Company loses control over acquiree. Other comprehensive income arising from
remeasurement of defined benefit plan is excluded.
2. Disposing the subsidiary by multiple transactions
Where the Company loses control of a subsidiary in multiple transactions in which it disposes of its subsidiary in stages,
in determining whether to account for the multiple transactions as a single transaction, the Company shall consider all of
the terms and conditions of the transactions and their economic effects. One or more of the following may indicate that
the Company shall account for the multiple arrangements as a single transaction:
(a) Arrangements are entered into at the same time or in contemplation of each other;
(b) Arrangements work together to achieve an overall commercial effect;
(c) The occurrence of one arrangement is dependent on the occurrence of at least one other
arrangement; and
(d) One arrangement considered on its own is not economically justified, but it is economically
justified when considered together with other arrangements.
If each of the multiple transactions forms part of a bundled transaction which eventually results in loss of control of the
subsidiary, these multiple transactions shall be accounted for as a single transaction. In the consolidated financial
statements, the difference between the consideration received and the corresponding proportion of the subsidiarys net
assets in each transaction prior to the loss of control shall be recognized in other comprehensive income and transferred
to the profit or loss when the Company eventually loses control of the subsidiary.
If each of the multiple transactions which eventually results in loss of control of the subsidiary do not form part of a
bundled transaction, apply the treatment of disposing partial long-term equity investments in a subsidiary without loss of
control prior to the loss of control. After the loss of control, apply the treatment of disposing the subsidiary in common
cases.
(3) Acquiring the subsidiary’s equity interest held by non-controlling shareholders
Where the Company has acquired a subsidiarys equity interest held by non-controlling shareholders, the
difference between the increase in the cost of long-term investments as a result of acquisition of
non-controlling interests and the share of net assets of the subsidiary calculated continuously from the
acquisition date or the combination date based on the new shareholding proportion shall be adjusted to the
capital reserve( capital premium or share premium) in the consolidated financial statements. If the balance
of the capital reserve is not sufficient, any excess shall be adjusted against retained earnings.
(4) Disposing partial long-term equity investments in a subsidiary without loss of control
When the Company disposes of a portion of the long-term equity investments in a subsidiary without loss of control, the
difference between the amount of the consideration received and the corresponding portion of the nest assets of the
subsidiary calculated continuously from the acquisition date or the combination date related to the disposal of the long-term
equity investments shall be adjusted to the capital reserve (capital premium or share premium) in the consolidated financial
statements. If the balance of the capital reserve is not sufficient, any excess shall be adjusted against retained earnings.
7. Joint arrangement classification and accounting treatment
A joint arrangement is classified as either a joint operation or joint venture.
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Bengang Steel Plates Co., Ltd. Annual Report 2015
When the Company is joint operator of joint arrangement and has rights to the assets, and obligations for the liabilities, relating
to the arrangement, it is classified as joint operation.
A joint operator shall recognize the following items in relation to its interest in a joint operation, and account for them in
accordance with relevant accounting standards:
(1) Its solely-held assets, and its share of any assets held jointly;
(2) Its solely-assumed liabilities, and its share of any liabilities incurred jointly;
(3) Its revenue from sales of its share of the output arising from the joint operation;
(4) Its share of the revenue from the sale of the output by the joint operation; and
(5) Its solely-incurred expenses and its share of any expenses incurred jointly.
8. Recognition basis of cash and cash equivalents
At preparing of cash flow statement, those investments, which are featured with short term (expire within 3 months
since purchased), high liquidity, easy to convert to know cash, low in risk of value change, could be recognized as cash
equivalents. Equity investment are not recognized as cash equivalents.
9. Translation of businesses and accounts in foreign currency
1. Trade in foreign currencies
Foreign currency transactions are translated into RMB at the current rate at the day of transactions.
The foreign currency monetary items shall be translated at the spot exchange rate on the balance sheet date. The balance of exchange
arising from the difference between the spot exchange rate on the balance sheet date and the spot exchange rate at the time of initial
recognition or prior to the balance sheet date, except those arising from the raising of special foreign debt for the purchase or
construction of capitalizable assets thus shall be capitalized according to the borrowing costs capitalization principle, shall be
recorded into the profits and losses at the current period. The foreign currency non-monetary items measured at the historical cost
shall still be translated at the spot exchange rate on the transaction date, of which the amount of functional currency shall not be
changed. The foreign currency non-monetary items measured at the fair value shall still be translated at the spot exchange rate on the
date of confirming the fair value and the balance of exchange arising from it shall be recorded into profits and losses at the current
period of disposal or capital reserves.
2. Translation of foreign currency financial statements
The asset and liability items in the statement of financial position shall be translated at a spot exchange rate on the balance sheet date.
Among the owner's equity items, except the ones as "undistributed profits", others shall be translated at the spot exchange rate at the
time when they are incurred. The income and expense items in the statement of comprehensive income shall be translated at the spot
exchange rate of the transaction date.
When disposing an overseas business, the Company shall shift the balance, which is presented under the items of the owner's equities
in the statement of financial position and arises from the translation of foreign currency financial statements related to this oversea
business, into the disposal profits and losses of the current period. If the overseas business is disposed of partially, the Company shall
calculate the balance arising from the translation of foreign currency statements of the part of disposal based on the disposal rate and
shall shift them into the profits and losses of the current period.
10. Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
1. Categorizing of financial instruments
The classification of financial assets and financial liabilities at initial recognition are as follows: financial assets or
financial liabilities designated at fair value through current profit and loss, including: trading financial investment,
held-to-maturity investment, loans and receivables, available-for-sale investment and other financial liabilities.
2. Recognition and measurement of financial instruments
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Bengang Steel Plates Co., Ltd. Annual Report 2015
(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 the
income statement when occurred.
Interests or cash dividends during the period of holding are recognized as investment gains. The fair value will be adjusted and
accounted as current gain/loss.
When disposed, the differences between fair value and initial amount are recognized as investment gains, and thus adjust the
gain/loss of fair value.
(2) Held-to-maturity investment
The Held-to-maturity investments are recognized initially at fair value (minus bond interest matured but not drawn yet). The relevant
transaction cost is recognized in the income statement when occurred.
The held-to-maturity investments are measured at amortized cost using the effective interest rate. The interest income is recognized
as investment income. The effective interest will be determined at the initial recognition and will not be changed in the holding
period or within the 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 the income statement.
(4) Available for sale financial assets
Available for sale financial assets are initially recorded at fair value plus any directly attributable transaction costs on the trade date
and subsequently re-measured at fair value. The price including the declared but not received bond interest or cash dividend is
recognized as a separate item.
The Company recognizes the interest or cash dividends as investment income. At each balance sheet date, available-for-sale financial
assets are measured at fair value and the fair value changes are recognized in the capital reserve - other capital reserve.
The difference between the proceeds of the disposal and the carrying value shall be recognized as investment income. And the related
fair value change in the shareholders equity shall be transferred out, and recorded as investment income.
(5) Other financial liabilities
For other financial liabilities, they are initially recognized at fair value plus any directly attributable transaction costs. After the initial
recognition, the other financial liabilities are measured at amortized cost.
3. Basis of recognition and accounting of financial asset transferring
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 pay more attention to the essential of the transfer of the financial asset.
(1) Book value of the financial asset to be transposed;
(2) The sum of price received due to the transposition, and the accumulation of change in fair value originally accounted as owners
equity (when the asset to be transposed is saleable financial asset).
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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Bengang Steel Plates Co., Ltd. Annual Report 2015
financial asset shall, between the portion whose recognition has been stopped and the portion 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. Termination of financial liability recognition
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 an enterprise (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 repo day, the carrying amount of the whole
financial liabilities in light of the comparatively fair value of the part that continues to be recognized and the part whose recognition
has already been terminated. The gap between the carrying amount which is distributed to the part whose recognition has terminated
and the considerations it has paid (including the noncash assets it has transferred out and the new financial liabilities it has assumed)
shall be recorded into the profits and losses of the current period.
5. Determination of the fair value
The fair values of the financial assets or financial liabilities measured at fair value shall be determined by reference to the quoted
prices in the active market.
6. Impairment provision of the financial assets (not including accounts receivables)
The Company shall carry out impairment review for the financial assets at the balance sheet date except for the financial assets at fair
value through profit or loss. Where there is any objective evidence proving that such financial asset has been impaired, an
impairment provision shall be made.
(1) Impairment of available-for-sale financial assets
An impairment provision shall be made where the fair value of the held-to-maturity financial assets drops significantly at the balance
sheet date or the trend of decrease is expected not to be temporary after taking various factors into consideration. The accumulative
losses arising from the decrease of the fair value of the owners equity which was directly included shall be transferred out and
recorded as impairment loss.
Where any available-for-sale debt instruments is recognized as having suffered from any impairment loss, if there is any objective
evidence proving that the value of the said debt instruments has been restored, and it is objectively related to the events that occur
after such loss is recognized, the impairment-related losses as originally recognized shall be reversed and be recorded into the profits
and losses of the current period.
Impairment losses incurred by investment transactions of available-for-sale equity instruments shall not be reversed through profits
and losses.
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Bengang Steel Plates Co., Ltd. Annual Report 2015
The criteria for “serious” level of the decrease of fair value of available-for-sale financial instruments are as follows: the decrease of
fair value for the equity investment with the active transaction in a market of good liquidity is normally 50%. The decrease of fair
value of the equity investment without good market liquidity is normally 30%; the criteria for “non-temporary” decrease of fair value
is continuous decrease over 12 months; the cost of investment is based on the purchase price.
(2) Impairment of held-to-maturity investment
The impairment of the held-to-maturity investment can be measured by reference to the measurement of the impairment of accounts
receivables.
11. Account receivable
(1) Bad debt provision on receivable accounts with major amount individually
Basis of recognition or standard amount of individual account Balance of account receivable RMB10 million; other account
with large amount receivable RMB5 million or over.
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
Basis of bad debt provision 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) Receivable accounts on which bad debt provisions are provided as groups
Name of the portfolio Basis of providing bad debt provisions
Receivable account with minor amount and tested individually
Age analysis method
and not impaired
Accounts on age basis in the portfolio:
√ Applicable □ Not applicable
Rate of provision on other receivable
Age Rate of provision on receivable accounts
accounts
1－2 years 5.00% 5.00%
2－3 years 20.00% 20.00%
Over 3 years 100.00% 100.00%
Accounts on percentage basis in the portfolio in the group:
□ Applicable √ Not applicable
Accounts on other basis in the portfolio in the group:
□ Applicable √ 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.
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Bengang Steel Plates Co., Ltd. Annual Report 2015
When there is solid evidence showing that the possibility of
retrieving is minor, the account shall be tested for impairment
Basis of bad debt provision
individually and bad debt provision shall be provided at the
estimated unrecoverable amount.
12. Inventories
1. Categories of inventory
Inventories include material in transit, raw material, low-valued consumables, work in process, finished goods, materials for
consigned processing, etc.
2. Pricing of inventory on delivery
When inventories are delivered, the effective costs are recognized by weighted average method.
3. Recognition of realizable net value of inventory and providing of inventory impairment provision
The net realizable value of inventories (finished products, stock commodity, material etc.) held for direct selling in the daily business
activity shall be calculated by deducting the estimated sale expense and relevant taxes from the estimated sale price of inventories.
The net realizable value of inventories for further processing in the daily business activity shall be calculated by deducting the
estimated cost of completion, estimated sale expense and relevant taxes from the estimated sale price of inventories. The net
realizable value of inventories held for the execution of sales contracts or labor contracts shall be calculated on the ground of the
contract price. If an enterprise holds more inventories than the quantities subscribed in the sales contract, the net realizable value of
the excessive part of the inventories shall be calculated on the ground of the general sales price.
The Company shall make provision for loss on decline in value of inventories on the ground of each item of inventories at the year
end. For inventories with large quantity and relatively low unit prices, the provision for loss on decline in value of inventories shall
be made on the ground of the categories of inventories.
Net realizable value of inventories are market price at balance date unless any indication that the market price at balance date appears
abnormally.
The net realizable value of inventory at the year-end is based on the market price at the balance sheet date.
4. Inventory basis
The Company use perpetual inventory system.
5. Amortizing of low-value consumables and packaging materials
(1)Low-valued consumables should be amortized in full amount on issuance.
(2)Packing materials should be amortized in full amount on issuance.
13.Categorizing of asset held for sale
The Companys component(or non-current asset) will recognize as held-for-sale while satisfied the followed conditions
simultaneously:
（1）The component can be promptly sold at its existing status only according to the practice terms in connection with disposal of
this kind of assets;
（2）The Company has already made resolution on disposal of such component, such as approved by shareholders in line with
regulations, have already approved by general meeting or relevant authority;
（3）The Company entered into irrevocable transfer agreement with the transferee;
（4）This transfer will be completed within one year.
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14. Long-term equity investment
1. Criteria of join control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant
activities require the unanimous consent of the parties sharing control.
Significant influence is the power to participate in the financial and operating policy decisions of the investee but not control or join
control of those policies. If the Company could exert significant influence over the investee, the investee is the associate of the
Company.
2. The initial cost of long-term equity investment from business acquisition
(1) Long-term equity investment formed by merger
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
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) Long-term equity investment obtained by other ways
The initial cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost which is actually
paid.
Long-term equity investment obtained by placing of equity stocks is recognized for initial investment cost at the fair value of the
stock.
If the exchange of non-monetary assets is commercial in nature and the fair values of both the assets received and surrendered can be
reliably measured, the fair value of the assets surrendered shall be used as the basis for determining the cost of the assets received,
unless there is any exact evidence showing that the fair value of the assets received is more reliable. Where any non-monetary assets
transaction does not meet the conditions as prescribed above, the carrying value and relevant payable taxes of the assets surrendered
shall be the initial cost of the assets received.
Long-term equity investment obtained through debt reorganizing is recognized for initial investment cost at fair value.
3. Subsequent measurement and profit or loss recognition
(1) Cost method
The Company adopts cost method for the long term investment in subsidiary company. Under the cost method, an investing
enterprise shall, in accordance with the attributable share of the net profits or losses of the invested entity, recognize the investment
profits or losses except the dividend declared but unpaid, which is included in the payment when acquiring the investment.
(2) Equity method
A long-term equity investment in an associate or a joint venture shall be accounted for using the equity method. Where the initial
investment cost of a long-term equity investment exceeds tan investors interest in the fair values of an investees identifiable net
assets at the acquisition date, no adjustment shall be made to the initial investment cost. Where the initial cost is less than the
investors interest in the fair values of the investees identifiable net assets at the acquisition date, the difference shall be credited to
profit or loss for the current period, and the cost of the long-term equity investment shall be adjusted accordingly.
The Company shall recognize its share of the investees net profits or losses, as well as its share of the investees other
comprehensive income, as investment income or losses and other comprehensive income, and adjust the carrying amount of the
investment accordingly. The carrying amount of the investment shall be reduced by the portion of any profit distributions or cash
dividends declared by the investee that is attributable to the investor. The investors share of the investees owners equity changes,
other than those arising from the investees net profit or loss, other comprehensive income or profit distribution, and the carrying
amount of the long-term equity investment shall be adjusted accordingly.
The investor shall recognize its share of the investees net profits or losses after making appropriate adjustments based on the fair
values of the investees identifiable net assets at the acquisition date.
The unrealized profits or losses resulting from transactions between the investor and its associate or joint venture shall be eliminated
in proportion to the investors equity interest in the investee, based on which investment income or losses shall be recognized. Any
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losses resulting from transactions between the investor and investee which are attributable to asset impairment shall be recognized in
full.
If the transaction of investment or sale of assets among the Company and associate and joint venture and the assets is a business, it
shall apply the treatment mentioned in Note 2 (5) “The accounting treatment for Business combination under/now under common
control” and Note 2 (6) “Consolidation of Financial Statements”.
When the Company recognizes the losses of invested enterprise, it shall follow the following sequence: First of all, offset the book
value of long term equity investment. If the book value of long term equity is insufficient to dilute, the investing enterprise shall
recognize the net losses of the invested enterprise until the book value of the long-term equity investment and other long-term rights
and interests which substantially form the net investment made to the invested entity are reduced to zero. If the company still has the
obligation to undertake extra losses per contract, and then estimated liabilities shall be recognized into current profit and loss
accordingly to the estimated obligation.
(3) Disposal of long-term equity investment
On disposal of a long-term equity investment, the difference between the proceeds actually received and the carrying amount shall be
recognized in profit or loss for the current period.
When the previously-held equity investment is accounted for under the equity method, any other comprehensive income previously
recognized shall be accounted for on the same basis as would have been required if the investee had directly disposed of the related
assets or liabilities.
Those owner's equity recognized other than the change of net profits or loss, other comprehensive income, profit distribution of the
invested entity shall be transferred proportionally into profit or loss of current period, other comprehensive income arising from the
remeasurement of defined benefit plan is excluded.
When an investor can no longer exercise joint control of or significant influence over an investee due to partial disposal of equity
investment or other reasons, the remaining equity investment shall be accounted for in accordance with “Accounting Standard for
Business Enterprises No. 22-Financial instruments: recognition and measurement”. The difference between the fair value and the
carrying amount at the date of the loss of join control or significant influence shall be charged to profit or loss for the current period.
When the previously-held equity investment is accounted for under the equity method, any other comprehensive income previously
recognized shall be accounted for on the same basis as would have been required if the investee had directly disposed of the related
assets or liabilities for the current period upon discontinuation of the equity method.
Those owner's equity recognized other than the change of net profits or loss, other comprehensive income, profit distribution of the
invested entity shall be transferred into profit or loss of current period in full when the Company cease to adopt the equity method.
When the Company can no longer exercise control over an investee due to partial disposal of equity investment or other reasons, and
with the retained interest, still has joint control of, or significant influence over, the investee, when preparing the individual financial
statements, the investor shall change to the equity method and adjust the remaining equity investment as if the equity method had
been applied from the date of the first acquisition. If the investor cannot exercise joint control of or significant influence over the
investee after partial disposal of equity investment, the remaining equity investment shall be accounted for in accordance with
“Accounting Standard for Business Enterprises No.22-Financial instruments: Recognition and Measurement”, and the difference
between the fair value and carrying amount at the date of the loss of control shall be charged to profit or loss for the current period.
When the equity investment disposed is acquired through business combination due to additional investment or other reasons, in
stand-alone financial statement, the remaining equity investment shall adopt cost method or equity method, any other comprehensive
income and other owners interests previously recognized of the previously-held equity investment under the equity method shall be
transferred proportionally.
For those remaining equity investment accounted for in accordance with “Accounting Standard for Business Enterprises
No.22-Financial instruments: Recognition and Measurement” after disposal, other comprehensive income and other owners interests
previously recognized shall be transferred to profit or loss in full.
15. Investment property
Measurement mode
Measured by cost method
Depreciation or amortization method
The term "investment properties" refers to the real estate held for generating rent and/or capital appreciation. The investment
properties include:
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(1) The land use right which has already been rented;
(2) The land use right which is held and prepared for transfer after appreciation; and
(3) The building which has already been rented (including buildings self-constructed or developed for rent after completion or
buildings being built or developed for future rent).
The investment properties shall be measured 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.
16. Fixed assets
(1) Basis of recognition
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.
(2) Depreciation
Categories Basis of depreciation Depreciation Period Retain value rate Annual depreciation ratio
Straight average on
Houses & buildings 8-40 years 0 2.50%-12.50%
period
Straight average on
Equipment & machinery 4-18 years 3 5.39%-24.25%
period
Vehicle and other Straight average on
5-18 years 3 5.39%-19.40%
equipment period
(3) Recognition and pricing of fixed asset leased by financing
When one of the following conditions was satisfied, it will be recognized as asset leased by financing:
(1) The ownership will be under the possession of the Company upon expiration of leasing period;
(2) The option to acquire the asset is open to the Company, and with a price far lower than the fair value of the asset on execution of
the option.
(3) The leasing period is taking the majority part of its useful life;
(4) There is no material difference between the current value of the lowest rental at the starting date and the fair value of the asset. At
the starting date, the Company recorded the lower one of fair value and the current value of the lowest rental as the book value of the
leased asset, the lowest rental payment as the book value of long term payable, and the difference was recorded as unrecognized
financing expenses.
17. Construction-in-process
The cost of fixed assets transferred from a construction in progress includes all the necessary expenses incurred for bringing the asset
to the expected conditions for use. Construction in progress is transferred to fixed asset when it has reached its working condition for
its intended use. In case the final project accounts have not been completed or approved, the asset shall be transferred to fixed assets
at an estimated value by considering project budget, cost or actual cost of the project and etc., and the deprecation of the said fixed
assets shall be provided in accordance with the Companys accounting policy since it has reached its working condition for its
intended use. After the project accounts have been approved, the estimated values shall be adjusted based on the actual cost, but those
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provided deprecation shall not be adjusted.
18. Borrowing expenses
1. Recognition principles for capitalizing of borrowing expenses
The borrowing costs shall include interest on borrowings, amortization of discounts or premiums on borrowings, ancillary expenses,
and exchange balance on foreign currency borrowings.
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset satisfying the conditions of
capitalizing, are capitalized and accounted as cost of related asset. Other borrowing expenses are recognized as expenses according to
the occurred amount, and accounted into gain/loss of current term.
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.
When a borrowing expense satisfies all of the following conditions, it is capitalized:
(1) Asset expense has already occurred. Asset expenses include cash payment, non-cash asset transferring, or undertaking of debt
with interest done for purchasing or producing of assets.
(2) The borrowing expense has already occurred.
(3) Purchasing or production activity, which is necessary for the asset to reach the useful status, has already started.
2. Capitalizing period of borrowing expenses
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.
Capitalizing of borrowing expenses terminates when the purchased or produced asset reaches the supposed useful or saleable status.
When purchasing or producing of part of the asset, which satisfies the capitalizing conditions, has finished and could be used
separately, capitalizing of borrowing expenses for this part of asset is terminated.
Where each part of an asset under acquisition and construction or production is completed separately and is ready for use or sale
during the continuing construction of other parts, but it cannot be used or sold until the asset is entirely completed, the capitalization
of the borrowing costs shall be ceased when the asset is completed entirely.
3. The suspension of capitalization of borrowing costs
If the construction or production of assets satisfying the capitalizing conditions is suspended abnormally for over 3 months,
capitalizing of borrowing expenses shall be suspended. Borrowing expenses occurred in the suspension period are recognized as
expenses and recorded to current income account, until the construction or production is resumed. If the suspension is an essential
process to make the asset usable or sellable, capitalizing of borrowing expenses shall be carried forward.
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.
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19. Intangible assets
(1) Price, useful age, and impairment test
1. Evaluating of intangible assets
(1) Initial measurement is based on cost upon acquisition
The cost of an intangible asset on acquisition include the purchase price, relevant taxes and other necessary disbursements which may
be directly attributable to bringing the intangible asset to the conditions for the expected purpose. If the payment for an intangible
asset is delayed beyond the normal credit conditions and it is of the financing nature, the cost of the intangible asset shall be
determined on the basis of the present value of the purchase price.
For intangible assets obtained from debt restructuring as settlement of liabilities from debtors, initial recognition is based on its fair
value, and the difference between the debt restructured and the fair value of the intangible assets are recognized in the current profit
and loss.
For intangible assets obtained from non-monetary transactions with commercial substance, and the fair value of the assets obtained or
surrendered can be reliably measured, the initial recognition of the asset obtained is based on the fair value of the asset surrendered,
unless there is strong evidence that the fair value of the asset obtained is more reliable. For intangible assets obtained through
non-monetary transactions which do not meet the above criteria, the initial recognition is based on the book value of the assets
surrendered and the relevant taxes payable. No gain or loss will be recognized.
(2) Subsequent Measurement
The Company shall analyze and judge the beneficial period of intangible assets upon acquisition.
Intangible assets with finite beneficial period shall be amortized under the straight-line method during the period when the intangible
asset can bring economic benefits to the enterprise. If it is unable to estimate the beneficial period of the intangible asset, it shall be
regarded as an intangible asset with uncertain service life and shall not be amortized.
2. Estimated useful lives of intangible assets with limited useful lives
Item Estimated useful life Criteria
Land use right 50 years Land use right certificate
At the end of the year, review the amortization method and finite useful life of intangible life.
There is no difference of amortization method and useful life as expected.
3. Determination of intangible assets with uncertain useful lives
As of the balance sheet date, , the useful life of the intangible assets is still uncertain.
(2) Accounting policies for expenses of internal research
1. Classification criteria for internal research phase and development phase
The specific standards of differentiating research stage and development stage of internal R&D projects：
Research stage is the planned research for obtaining knowledge of new technology, the preparation for further development.
Development stage is applying specific researching results and other technologies to some plans or designs to produce new material,
devices and products.
2. Criteria of capitalization of development expenditure
Expenditures during the development phase of internal research and development projects shall be recognized as intangible assets
when they meet all the following criteria:
(1) It is feasible technically to complete the intangible assets for use or sale;
(2) The intention to complete and use or sell the intangible assets is present;
(3) The method of which the intangible assets generate economic benefits shall be proved, including being able to prove that there is
a potential market for the products manufactured by applying the intangible assets or there is a potential market for the intangible
assets itself or the intangible assets will be used internally;
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(4) It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the support of
sufficient technologies, financial resources and other resources; and
(5) The development expenditures of the intangible assets can be reliably measured.
The development expenditures for its internal research and development projects of the Company shall be recorded into the profit or
loss for the current period if the above said conditions are not satisfied simultaneously. The research expenditures for its internal
research and development projects of an enterprise shall be recorded into the profit or loss for the current period when incurred.
20. Impairment of long-term assets
For long-term assets under the cost model such as fixed assets, construction in progress, intangible assets etc., the Company shall
perform impairment tests at the period end if there is clear indication of impairment.
If the recoverable amounts of long-term assets are less than their carrying amounts, the carrying amounts of the assets shall be written
down to their recoverable amounts. The write-downs are recognized as impairment losses and charged to current profit and loss. The
recoverable amounts of long-term assets are the higher of their fair values less costs to sell and the present values of the future cash
flows expected to be derived from the assets. The Company shall estimate its recoverable amount on an individual basis. Where it is
difficult to do so, it shall determine the recoverable amount of the group assets on the basis of the asset group to which the asset
belongs. The term "group assets” refers to a minimum combination of assets by which the cash flows could be generated
independently
The goodwill shall be subject to an impairment test at least at the end of each year.
When the Company makes an impairment test of assets, it shall, as of the purchasing day, apportion the carrying value of the business
reputation formed by merger of enterprises to the relevant asset groups by a reasonable method. Where it is difficult to do so, it shall
be apportioned to the relevant combinations of asset groups.
When apportioning the carrying value of the business reputation to the relevant asset groups or combinations of asset groups, it shall
be apportioned on the basis of the proportion of the fair value of each asset group or combination of asset groups to the total fair
value of the relevant asset groups or combinations of asset groups. Where it is difficult to measure the fair value reliably, it shall be
apportioned on the basis of the proportion of the carrying value of each asset group or combination of asset groups to the total
carrying value of the relevant asset groups or combinations of asset groups.
When making an impairment test on the relevant asset groups or combination of asset groups containing business reputation, if any
evidence shows that the impairment of asset groups or combinations of asset groups is possible, the Company shall first make an
impairment test on the asset groups or combinations of asset groups not containing business reputation, calculate the recoverable
amount, compare it with the relevant carrying value and recognize the corresponding impairment loss. Then the Company shall make
an impairment test of the asset groups or combinations of asset groups containing business reputation, and compare the carrying
value of these asset groups or combinations of asset groups (including the carrying value of the business reputation apportioned
thereto) with the recoverable amount. Where the recoverable amount of the relevant assets or combinations of the asset groups is
lower than the carrying value thereof, it shall recognize the impairment loss of the business reputation.
Impairment losses on long-term assets shall not be reversed in subsequent accounting periods once recognized.
21. 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.
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Long-term expenses are amortized straightly to the beneficiary period.
22. Employee wages
(1) Accounting treatment for short employee benefit
The Company shall recognized , in the accounting period in which an employee provides service, actually
occurred short-term employee benefits as a liability, with a corresponding charge to the profit or loss or cost of an
asset for the current period.
Payments made by an enterprise of social security contributions for employees, payments of housing funds, and
union running costs employee education costs provided in accordance with relevant requirements shall, in the
accounting period in which employees provide services, be calculated according to prescribed bases and
percentages in determining the amount of employee benefits.
The employee benefits which are non-monetary benefits shall be measured at fair value if it could be measured
reliably.
(2) Accounting treatment of post-employment benefits
1) Defined contribution plan
The Company shall recognize, in the accounting period in which an employee provides service, pension fund and
unemployment fund for employees as a liability according to the local government regulations. The amount shall
be calculated according to local prescribed bases and percentages in determining the amount of employee benefits,
with a corresponding charge to the profit or loss or cost of an asset for the current period.
2) Defined benefit plan
None
(3) Accounting treatment of termination benefits
When the Company cannot unilaterally withdraw the offer of termination benefits because of an
employment termination plan or a curtailment proposal, When the Company recognizes costs or
expenses related to a restructuring that involves the payment of termination benefits.
(4) Accounting treatment of other long-term employee benefits payable
None
23. Anticipated liabilities
1) Recognition Criteria of estimated liabilities
The obligation pertinent to a Contingency (litigation, guarantees, loss contract, restructuring) shall be recognized as an estimated
liabilities when the following conditions are satisfied simultaneously:
(1) That obligation is a current obligation of the enterprise;
(2) It is likely to cause any economic benefit to flow out of the enterprise as a result of performance of the obligation; and
(3) The amount of the obligation can be measured in a reliable way.
2) Measurement of estimated liabilities
The estimated debts shall be initially measured in accordance with the best estimate of the necessary expenses for the performance of
the current obligation.
To determine the best estimate, an enterprise shall take into full consideration of the risks, uncertainty, time value of money, and
other factors pertinent to the Contingencies. If the time value of money is of great significance, the best estimate shall be determined
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after discounting the relevant future outflow of cash.
The best estimate shall be conducted in accordance with the following situations, respectively:
If there is a continuous range for the necessary expenses and if all the outcomes within this range are equally likely to occur, the best
estimate shall be determined in accordance with the average estimate within the range, that is, the average of the upper and lower
limit.
If there is not a sequent range for the necessary expenses and if the outcomes within this range are not equally likely to occur, the
best estimate shall be determined as follows:
(1) If the Contingencies concern a single item, it shall be determined in the light of the most likely outcome.
(2) If the Contingencies concern two or more items, the best estimate shall be calculated and determined in accordance with all
possible outcomes and the relevant probabilities.
When all or some of the expenses necessary for the liquidation of an estimated debts of an enterprise is expected to be compensated
by a third party, the compensation shall be separately recognized as an asset only when it is virtually certain that the reimbursement
will be obtained. The amount recognized for the reimbursement shall not exceed the book value of the estimated debts.
24. Revenue
1. Recognition Criteria for the Revenue from sale of goods
(1) The general principle of revenue recognition and measurement
The Company has transferred to the buyer the significant risks and rewards of ownership of the goods; and retained neither
continuing managerial involvement which usually relates to the ownership nor exerts effective control over the goods sold. The
relevant amount of revenue can be measured reliably, the economic benefits related to the transaction will flow into the enterprise;
and the relevant costs incurred or to be incurred can be measured reliably. Revenue from the sale of goods may be recognized.
(2) The specific criteria of revenue recognition and measurement
The amount of sale of goods is recognized according to the contract or agreement terms.
The company mainly sells products such as steel. Domestic revenue is recognized need to meet the following criteria: The company
has agreed to deliver the product to the buyer under the contract, the amount of revenue and product sales has been determined, the
money has been recovered or made payment vouchers and related economic benefits are likely to flow, product-related the cost can
be measured reliably. Export revenue is recognized must meet the following conditions: According to the contract the company has a
product declaration, departure, made the bill of lading, and the sales revenue amount has been determined, the money has been
recovered or made payment vouchers and related economic benefits are likely to flow, costs associated with the product can be
measured reliably.
2. Recognition Criteria for the Revenue from alienating of Assets Use Rights
(1) The general principle
When it is probable that economic benefits in relation to the transaction will flow into the enterprise; and the amount of revenues can
be measured reliably. The Company shall ascertain the amount of revenues from the transfer of Assets Use Right based on the
following circumstances respectively:
(1) Interest income shall be calculated based on the duration of which the Company's cash is used by others and the actual interest
rate; or
(2) Royalty revenue shall be calculated based on the period and method of charging as stipulated in the relevant contract or
agreement.
(2) The evidence of recognition of Revenue from alienating of Assets Use Rights
(1) The agreement alienating of Assets Use Rights of has been signed and provided to users; and
(2) The timing for collecting the fee is due.
3. Recognition Criteria for the Revenue from Providing Labor Services and Construction Contracts under Percentage of
Completion Method
Revenue from providing labor services are recognized under the percentage of completion method if the outcome of the labor service
provision transaction can be reliably measured. Percentage completed is determined by measurement of work completed.
Total revenue from providing of labor services is determined based on the received or receivable amount stipulated in the contract or
agreement, unless the received or receivable amount as stipulated in the contract or agreement is unfair. The Company shall, on the
date of the balance sheet, ascertain the current revenue from providing labor services by multiplying the total amount of revenues
from providing labor services with the percentage completion, less cumulative revenues recognized in the previous accounting
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periods. At the same time, the enterprise shall recognize current cost of labor services by multiplying the total estimated cost of
providing of labor services with percentage completion less cumulative costs recognized in the previous accounting periods.
If the result of a transaction concerning the providing of labor services cannot be reliably measured at the balance sheet date, it shall
be measured as follows:
(1) If the cost of labor services incurred is expected to be compensated, the revenue from the providing of labor services shall be
recognized to the extent of the cost of labor services incurred, and the cost of labor services shall be recognized; or
(2) If the cost of labor services incurred is not expected to compensate, the cost incurred shall be recognized in the current profit and
loss, and no revenue from the providing of labor services shall be recognized.
25.Government Subsidies
(1) Determination basis and accounting for government grants related to assets
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.
If clear evidence shows that conditions for granting the finance support fund can be met and the finance support
fund is supposed to be received, the amount of receivable can be recognized.
(2) Determination basis and accounting for government grants related to income
The government subsidies pertinent to fixed assets and intangible assets acquired 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.
26. Deferred income tax assets/ deferred income tax liabilities
The Company shall recognize the deferred income tax liabilities arising from a deductible temporary difference to the extent of the
amount of the taxable income which it is most likely to obtain and which can be deducted from the deductible temporary difference.
As for any deductible loss or tax deduction that can be carried forward to the next year, the corresponding deferred income tax assets
shall be determined to the extent that the amount of future taxable income to be offset by the deductible loss or tax deduction to be
likely obtained.
All taxable temporary differences shall be recognized as deferred tax liabilities with certain limited exceptions.
Exceptions when deferred tax assets and deferred tax liabilities are not recognized include: initial recognition of goodwill; initial
recognition of an asset or liability in a transaction or event that is not a business combination and at the time of the transaction,
affects neither accounting profit nor taxable profit (tax loss)
The Company shall offset deferred tax assets and deferred tax liabilities if, and only if: (a) the entity has a legally enforceable right to
set off current tax assets against current tax liabilities; and (b) the deferred tax assets and the deferred tax liabilities relate to income
taxes levied by the same taxation authority on either:(i) the same taxable entity; or (ii) different taxable entities which intend either to
settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future
period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
27. Leasing
(1) Accounting treatment of operating lease
1) The rents paid for operating leases shall be recorded in the profits and losses of the current period by using the straight-line
method over each period of the lease term. The initial direct costs paid by the Company shall be recorded into the profits and losses
of the current period
If the lessor has shouldered any expense related to the lease which shall have been borne by the Company, the Company shall deduct
these expenses from the total rental expense and the remaining rental expense shall be allocated to each period during the lease term
2) The rents collected from operating leases shall be recorded in the profits and losses of the current period by using the straight-line
method over each period of the whole lease term in which free lease period is included. The initial direct costs paid by the Company
shall be recorded into the profits and losses of the current period. The initial direct costs shall be capitalized if it is material, and be
allocated to each period as per the basis for rental revenue recognition.
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Bengang Steel Plates Co., Ltd. Annual Report 2015
If the Company has shouldered any expense related to the lease which shall have been borne by the lessee, the company shall deduct
these expenses from the total rental revenue and the remaining rental revenue shall be allocated to each period during the lease term.
(2) Accounting treatment of Financial leasing
1) Leased in asset
On the lease beginning date, a lessee shall record the lower one of the fair value of the leased asset and the present
value of the minimum lease payments on the lease beginning date as the initial book value, recognize the amount
of the minimum lease payments as the initial book value of long-term account payable, and treat the balance
between the recorded amount of the leased asset and the long-term account payable as unrecognized financing
charges.
The lessee shall adopt the effective interest rate method to calculate and recognize the financing charge in the
current period. The unrecognized financing charge shall be amortized to each period during the lease term.
28. Other significant accounting policies and change of accounting estimate
Has been discontinued operations of the Company is to meet the Company disposed of or classified as held for
sale, at the time of operation and preparation of financial statements can be separately identified part of the
following conditions:
(1)This part represents the composition of a separate major business or a major business area;
(2)This part is a part intended for an independent or a major business areas mainly engaged in the disposal
program;
（3）This part is just to re-sell the subsidiary acquired
29. Change of material accounting policies and estimations
(1) Material accounting policies
[] Applicable; [V] Not applicable
(2) Material estimations
[] Applicable; [V] Not applicable
VI. Taxation
1. Types and rates of taxes
Taxes Tax references Applicable tax rates
Calculated on tax law from selling goods
and taxable services based on the
VAT calculation of output tax, after deduction of 17%、11%、6%
input tax deductibility of the current
period, the balance part of VAT payable
Operational tax Revenue of leasing and taxable services 5%
Paid upon actual amount of operational tax
City maintenance and construction tax 7%、5%
and VAT
117
Bengang Steel Plates Co., Ltd. Annual Report 2015
Enterprise income tax Taxable income 25%
The balance of the buildings original costs
Property tax 1.2%
minus 30% of original costs
Paid upon actual amount of operational tax
Education surcharge 3%、2%
and VAT
Statement on different taxpayers within the Company
Name of the taxpayer Tax rate
2. Preference tax rate
None
VII. Notes to Consolidated Financial Statements
1. Monetary fund
In RMB
Items Closing balance Opening balance
Cash in stock 72,220.66 14,168.01
Bank deposit 4,612,384,032.13 9,283,113,740.33
Other monetary fund 528,024,257.18 509,812,501.06
Total 5,140,480,509.97 9,792,940,409.40
Other statements
Notes: No funds are deposited abroad at the year-end.
The details of restricted monetary funds
Items Closing balance Opening balance
Margin for bank acceptance bill 508,347,736.99 155,906,379.33
Guarantee for Yield Enhancement Products 310,000,000.00
Foreign exchange deposit 19,350,000.00
Total 527,695,736.99 465,906,379.33
2. Derivate financial assets
[] Applicable; [V] Not applicable
118
Bengang Steel Plates Co., Ltd. Annual Report 2015
3. Notes receivable
1) Notes receivable disclosed by category
In RMB
Items Closing balance Opening balance
Bank acceptance bill 2,446,693,577.16 2,045,638,618.35
Commercial acceptance bill 2,988,984.00 43,400,642.78
Total 2,449,682,561.16 2,089,039,261.13
2) The pledged acceptance bill at the year-end
In RMB
Items Amount on pledge
Bank acceptance bill 718,925,665.16
Total 718,925,665.16
3) The amount of Notes receivable endorsed over but not yet matured at the year-end.
In RMB
Amount of terminate recognition at year
Items Unrecognized ending balance
end
Bank acceptance bill 3,453,866,361.89
Total 3,453,866,361.89
4) Notes receivable has been transferred into accounts receivable due to inability of drawer to meet
acceptance bill at the year-end.
In RMB
Items Amount transferred to receivable accounts at year end
Other notes
4. Account receivable
(1) Accounts receivable disclosed by category
In RMB
Closing balance Opening balance
Categories Book balance Bad debt provision Book Book balance Bad debt provision
Book value
Amount Proportio Amount Proportio value Amount Proportio Amount Proportion
119
Bengang Steel Plates Co., Ltd. Annual Report 2015
n n n
Account receivable
withdrawal bad debt
642,517, 153,932, 488,584,6 630,346 142,579,0 487,767,04
provision by group of 100.00% 23.96% 100.00% 22.62%
001.01 376.29 24.72 ,107.53 65.31 2.22
credit risk
characterstics
642,517, 153,932, 488,584,6 630,346 142,579,0 487,767,04
Total 100.00% 23.96% 100.00% 22.62%
001.01 376.29 24.72 ,107.53 65.31 2.22
Receivable accounts with large amount individually and bad debt provisions were provided
[] Applicable; [V] Not applicable
Account receivables on which bad debt provisions are provided on age basis in the group:
[V] Applicable [] Not applicable
In RMB
Closing balance
Age
Account receivable Bad debt provision Rate
Segments within 1 year
within 1 year 404,591,894.02
Subtotal of within 1 year 404,591,894.02
1-2 years 37,248,268.67 1,862,413.43 5.00%
2-3 years 60,758,594.33 12,151,718.87 20.00%
Over 3 yrs 139,918,243.99 139,918,243.99 100.00%
Total 642,517,001.01 153,932,376.29 23.96%
Remarks on categories of receivable account
1. Providing of bad debt provision on single receivable account with major amount
Standard for recognition of major amount single account:
Balance of account receivable RMB10 million; other account receivable RMB5 million or over.
Providing method of bad debt provisions on single receivable account with major amount
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 .Account receivable withdrawal bad debt provision by group of credit risk characterstics：
Basis of recognition for portfolios
The portfolio: Receivable account with minor amount and tested individually and not
impaired
Basis of bad debt provision
120
Bengang Steel Plates Co., Ltd. Annual Report 2015
The portfolio: Age analysis method
Accounts on age basis in the portfolio in the Group:
Age Rate for receivables (%) Rate for other receivables (%)
Within 1 year, (included)
1-2 years (included) 5 5
2-3 years (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 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.
Receivable accounts on which bad debt provisions are provided on percentage analyze basis in a portfolio
[] Applicable; [V] Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the portfolio
(2) Receivable accounts written back or retrieved in the report period
Bad debt provision provided this period was RMB11,353,310.98.
Bad debt provision written back was RMB0.00 in the period.
Significant items of retrieving or writing back of bad debt provisions:
In RMB
Name of the companies Amount retrieved or written back way of retrieving
(3) Receivable accounts actually written off in the report period
In RMB
Items Amount written off
Significant amount written off:
In RMB
Name of the Property of the Reason of writing Written off Created by related
Amount written off
companies receivable account off procedures transaction or not
Statement on writing off of receivable accounts.
121
Bengang Steel Plates Co., Ltd. Annual Report 2015
(4) Top 5 debtors in the receivable accounts
Name of the companies Closing balance
Account receivable Proportion in the Bad debt provision
total receivable
account %
Benxi North Iron Industry Co., Ltd. 107,133,739.89 16.67
Benxi Nanfen Xinhe metallurgical furnace 87,379,647.78 13.60
Co Ltd
Liaoyang Petroleum Tube Co., Ltd. 35,689,868.98 5.55 3,341,228.18
Bengang B refractory material Co., 33,705,712.51 5.25
Ltd.
Huayou Steel Tube Co., Ltd. 32,873,213.55 5.12 5,891,750.53
Total 296,782,182.71 46.19 9,232,978.71
(5) Recognition of receivable accounts terminated
5. Prepayment
(1) Prepayment presented by ages:
In RMB
Closing balance Opening balance
Age
Amount Proportion Amount Proportion
within 1 year 423,542,198.08 74.32% 1,127,829,597.09 91.23%
1-2 years 139,209,276.37 24.43% 49,267,318.09 3.99%
2-3 years 7,100,476.24 1.25% 47,476,893.75 3.84%
Over 3 years 11,740,195.80 0.94%
Total 569,851,950.69 -- 1,236,314,004.73 --
Remarks on the unsettled prepayment due over 1 year:
Mainly prepayment for goods not mature yet according to the agreement.
(2) Top 5 prepayment categorized upon objects
Objects Closing balance Percentage in total
prepayment at year end
Benxi Beiying Steel & Iron (Group) Co., Ltd. 183,337,641.74 32.17
Changzhou Baoling Heavy Machinery Co., Ltd. 56,217,782.56 9.87
Zhongye Shanya Heavy Industry 52,720,022.00 9.25
122
Bengang Steel Plates Co., Ltd. Annual Report 2015
Wuhan Dushi Environmental protection 50,515,000.00 8.86
Engineering Technology Co., Ltd.
Jiangsu Kexing Industrial Equipment 36,992,022.40 6.49
Manufacturing Co., Ltd.
Total 379,782,468.70 66.64
Other notes
6. Interest receivable
(1) Categorized on interests receivable
In RMB
Items Closing balance Opening balance
Fixed deposit 3,073,233.31 7,011,095.89
Interest on bond 451,381.81
Total 3,524,615.12 7,011,095.89
7. Other account receivable.
(1) Other receivables disclosed by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categories Book
Proportio Proportio Book value
Amount Amount Amount value Amount Amount Proportion
n n
Other Account
receivable
withdrawal bad debt 216,153, 66,224,8 149,928,8 318,333 62,365,43 255,968,09
99.20% 30.64% 99.46% 19.59%
provision by group of 715.77 38.51 77.26 ,531.48 3.45 8.03
credit risk
characterstics
Other Account
receivable with no
large amount and 1,740,00 1,740,000 1,740,0 1,740,000.0
0.80% 0.54%
withdrawal bad debt 0.00 .00 00.00 0
provision for single
item
Total 217,893, 100.00% 66,224,8 30.39% 151,668,8 320,073 100.00% 62,365,43 19.48% 257,708,09
123
Bengang Steel Plates Co., Ltd. Annual Report 2015
715.77 38.51 77.26 ,531.48 3.45 8.03
Other receivable accounts with large amount and were provided bad debt provisions individually at end of period.
[] Applicable; [V] Not applicable
Other account receivables on which bad debt provisions are provided on age basis in the group:
[V] applicable[]Not Applicable
In RMB
Closing balance
Age
Other account receivable Bad debt provision Rate
Segments within 1 year
135,062,001.55
Subtotal of within 1 year 135,062,001.55
1-2 years 12,543,045.74 627,152.29 5.00%
2-3 years 3,688,727.82 737,745.56 20.00%
Over 3 yrs 64,859,940.66 64,859,940.66 100.00%
Total 216,153,715.77 66,224,838.51 30.64%
Remarks on categories of receivable account
1. Providing of bad debt provision on single receivable account with major amount
Standard for recognition of major amount single account:
Balance of account receivable RMB10 million; other account receivable RMB 5 million or over.
Providing method of bad debt provisions on single receivable account with major amount
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.
2. Receivables tested by portfolio:
Basis of recognition for portfolios
The portfolio: Receivable account with minor amount and tested individually and not
impaired
Basis of bad debt provision
The portfolio: Age analysis method
Accounts on age basis in the portfolio:
Age Rate for receivables (%) Rate for other receivables (%)
Within 1 year, (included)
124
Bengang Steel Plates Co., Ltd. Annual Report 2015
1-2 years (inclusive) 5 5
2-3 years (inclusive) 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 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 in the portfolio on which bad debt provisions were provided on percentage basis
[] Applicable; [V] Not applicable
Other receivable accounts in the portfolio on which bad debt provisions were provided on other basis
[] Applicable; [V] Not applicable
(2) Receivable accounts written back or retrieved in the report period
Bad debt provision provided this period was RMB3,859,405.06.
Bad debt provision written back was RMB0.00 in the period.
Significant items of retrieving or writing back of bad debt provisions:
In RMB
Name of the companies Amount written back or retrieved way of retrieving
None
(3) Writing off of other receivable accounts in the period
In RMB
Items Amount written off
Writing off of material other receivable accounts in the period
In RMB
Name of the Reason of writing Written off Created by related
Property of account Amount written off
companies off procedures transaction or not
Statements on writing off of other receivable accounts.
(4) Other receivables disclosed by nature
In RMB
Account property Closing balance of book value Opening balance of book value
Accounts 151,337,358.60 121,294,479.69
125
Bengang Steel Plates Co., Ltd. Annual Report 2015
Export tax rebate 32,772,729.71 130,825,472.18
Margin and deposit 3,571,060.87 4,598,002.52
Others 8,296,700.68 6,609,889.80
Input tax to be deducted 21,915,865.91 56,745,687.29
Total 217,893,715.77 320,073,531.48
(5) Top five debtors at the year-end
In RMB
Name of the Percentage of total Provision for bad
Nature of account Closing balance Age
companies other receivables debts
Tax bureau Export tax refund 21,915,865.91 Within 1 year 10.06%
Bengang Group
International Trading Current account 14,007,043.70 Within 1 year 6.43%
Co., Ltd.
Huozhou Coal &
Electricity Group Current account 4,341,257.18 Over 3 years 1.99% 4,341,257.18
Co., Ltd.
Zhejiang Sunon
Furniture
Current account 2,785,401.00 1-2 years 1.28% 139,270.05
Manufacturing Co.,
Ltd.
Liaoning
Huaweixuan coal Current account 2,261,360.00 Over 3 years 1.04% 2,261,360.00
Co., Ltd.
Total -- 45,310,927.79 -- 20.80% 6,741,887.23
(6) Receivable accounts involving the government
In RMB
Predicted time and
Name of the companies Title of the projects Closing balance Age at end of period
amount of receiving
None
126
Bengang Steel Plates Co., Ltd. Annual Report 2015
10. Inventories
(1) Categories of inventory
In RMB
Closing balance Opening balance
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Raw materials 5,527,236,707.17 4,894,918.76 5,522,341,788.41 6,399,017,393.13 4,894,918.76 6,394,122,474.37
Product in
1,011,630,448.37 192,850,188.37 818,780,260.00 1,194,892,927.05 44,360,110.69 1,150,532,816.36
process
Products in stock 2,566,825,937.84 306,213,543.83 2,260,612,394.01 3,510,656,117.98 46,897,590.79 3,463,758,527.19
11,104,566,438.1 11,008,413,817.9
Total 9,105,693,093.38 503,958,650.96 8,601,734,442.42 96,152,620.24
6 2
(2) Inventory impairment provision
In RMB
Increased current period Decreased current period
Items Opening balance Written back or Closing balance
Provided Others Others
off
Raw materials 4,894,918.76 4,894,918.76
Product in
44,360,110.69 192,850,188.37 44,360,110.69 192,850,188.37
process
Products in stock 46,897,590.79 306,213,543.83 46,897,590.79 306,213,543.83
Total 96,152,620.24 499,063,732.20 91,257,701.48 503,958,650.96
(3) Statement on part of the inventory balance which was the capitalized borrowing expenses
9. Non-current asset due in 1 year
In RMB
Items Closing balance Opening balance
Other notes
10. Other current assets
In RMB
127
Bengang Steel Plates Co., Ltd. Annual Report 2015
Items Closing balance Opening balance
Prepaid income tax 225,000,858.03 226,679,352.76
VAT and input tax to be deducted 206,359,683.18 230,825,156.67
Total 431,360,541.21 457,504,509.43
Other Notes
11. Disposable financial asset
(1) Sellable financial assets
In RMB
Closing balance Opening balance
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Sellable equity
20,271,278.63 20,271,278.63 20,271,278.63 20,271,278.63
instruments:
On cost basis 20,271,278.63 20,271,278.63 20,271,278.63 20,271,278.63
Total 20,271,278.63 20,271,278.63 20,271,278.63 20,271,278.63
(2) Sellable financial assets on fair value at end of period
In RMB
Categories of sellable Available-for-sale equity Debit instruments
Total
financial assets instruments sellable
(3) Sellable financial assets on cost at end of period
In RMB
Book balance Impairment provision Cash
Percentage dividend
Company At At
Increased Increased Decreased At end of of share in of the
invested in beginning beginning
this period this period this period term the firm % current
of term of term
term
Zhejiang
Bengang
Jingrui 1,967,605. 1,967,605.
20.00%
Steel 63 63
Processing
Ltd.
Suzhou 3,888,980. 3,888,980. 20.00%
128
Bengang Steel Plates Co., Ltd. Annual Report 2015
Bengang 00 00
Industrial
Co., Ltd.
China
Steel
Shanghai 14,414,693 14,414,693
15.00%
Steel .00 .00
Processing
Co., Ltd.
20,271,278 20,271,278
Total --
.63 .63
(4) Change of impairment of sellable financial assets in the report period
In RMB
Categories of sellable Available-for-sale equity Debit instruments
Total
financial assets instruments sellable
12. Fixed assets
(1) Particulars of fixed assets
In RMB
Transportation
Items Houses & buildings Equipment & machinery Total
equipment
I.Original value
1.Opening balance 10,224,039,014.58 33,098,746,490.42 773,132,017.21 44,095,917,522.21
2.Increased amount of
371,113,704.05 4,312,915,260.75 71,926,666.66 4,755,955,631.46
the period
（1）Outsourcing 5,018,594.77 10,541,500.17 816,274.43 16,376,369.37
(2) Transferred in from
366,095,109.28 4,302,373,760.58 71,110,392.23 4,739,579,262.09
construction in process
(3) Increased by merger
3. Decreased this period 19,604,190.88 266,419,500.67 8,242,111.52 294,265,803.07
(1) Disposed 19,604,190.88 266,419,500.67 8,242,111.52 294,265,803.07
4. Closing balance 10,575,548,527.75 37,145,242,250.50 836,816,572.35 48,557,607,350.60
II. Accumulative
129
Bengang Steel Plates Co., Ltd. Annual Report 2015
depreciation
1. Opening balance 4,216,854,550.82 22,179,825,053.52 544,196,523.38 26,940,876,127.72
2. Increased this period 493,877,936.59 1,323,685,256.12 7,319,201.80 1,824,882,394.51
(1) Provision 493,877,936.59 1,323,685,256.12 7,319,201.80 1,824,882,394.51
3. Decreased this
11,248,910.51 245,820,206.26 8,095,922.10 265,165,038.87
period
(1) Disposed 11,248,910.51 245,820,206.26 8,095,922.10 265,165,038.87
4. Closing balance 4,699,483,576.90 23,257,690,103.38 543,419,803.08 28,500,593,483.36
III. Impairment provision
1. Opening balance 8,208,087.85 2,551,052.65 10,759,140.50
2. Increased this period
(1) Provision
3. Decreased this
period
(1) Disposed
4. Closing balance 8,208,087.85 2,551,052.65 10,759,140.50
IV. Book value
1. Book value at end
5,867,856,863.00 13,885,001,094.47 293,396,769.27 20,046,254,726.74
of period
2. Book value at
5,998,976,375.91 10,916,370,384.25 228,935,493.83 17,144,282,253.99
beginning of period
(2) Fixed assets temporarily in idle status
In RMB
Accumulated Impairment
Items Original book value Book value Note
depreciation: provision
(3) Fixed asset by financial leasing
In RMB
Accumulated
Items Original book value Impairment provision Book value
depreciation:
(4) Fixed assets leased out on finance
In RMB
130
Bengang Steel Plates Co., Ltd. Annual Report 2015
Items Closing book value
Houses & buildings 58,903,607.19
Equipment & machinery 192,341.83
Transportation equipment 377,447.55
Total 59,473,396.57
(5) Fixed assets not granted certificate of property
In RMB
Items Book value Reason for certificate not granted
Other Notes
13. Construction-in-process
(1) Particulars of construction-in-process
In RMB
Closing balance Opening balance
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Cool rolling high
strength steel 3,451,712,764.91 3,451,712,764.91 1,925,107,936.24 1,925,107,936.24
rebuilding
hot galvanizing
project of No.3 335,752,700.00 335,752,700.00
hot rolling factory
Reconstruction
project of coke
dry cooling of 1,163,586,592.69 1,163,586,592.69
No.2 Coke
Workshop
Production line of
electro-galvanize
1,090,509,377.96 1,090,509,377.96
d steel plates for
automobile
Environmental
reconstruction of
converter and the
153,224,111.93 153,224,111.93 581,647,629.27 581,647,629.27
180t
dephosphorizatio
n converter
131
Bengang Steel Plates Co., Ltd. Annual Report 2015
360 M2 sintering
973,980,424.51 973,980,424.51 466,556,730.02 466,556,730.02
machine
Reconstruction of
hot-rolling 4,230,929.56 4,230,929.56 279,613,089.64 279,613,089.64
equipment
The new energy
control center 226,586,153.73 226,586,153.73 218,595,249.81 218,595,249.81
project
Information
223,389,048.63 223,389,048.63 183,662,781.72 183,662,781.72
system project
Softening water
62,631,414.86 62,631,414.86
supplying project
Upgrade the
surface quality of
Benxi Steel 50,023,398.37 50,023,398.37
Poxiang strip
detector
Department of
transportation
passenger
dedicated to 47,995,690.74 47,995,690.74 41,847,818.94 41,847,818.94
supporting the
transformation of
the South
Silicon steel
engineering
Other 229,752,469.26 229,752,469.26 62,393,703.15 62,393,703.15
Total 5,646,624,293.27 5,646,624,293.27 6,126,175,722.67 6,126,175,722.67
(2) Material change in construction-in-progress
In RMB
Amount Ratio of Accumulat Including: Capitalizat
Increased
Opening transferred Other Closing accumulati e of interest ion ratio of Fund
Projects Budget current Progress
balance to fixed deduction balance ve input on interest capitalized current recourse
period
asset budget capitalized this term period
Cool
rolling
high 6,100,00 1,925,10 1,526,60 3,451,71 305,147, 224,111,
strength 56.59% 60% 5.10% Other
steel
0,000.00 7,936.24 4,828.67 2,764.91 840.47 638.71
rebuilding
hot
galvanizin
g project 869,180, 335,752, 335,752,
of No.3 38.63% 40% Other
hot rolling
000.00 700.00 700.00
factory
132
Bengang Steel Plates Co., Ltd. Annual Report 2015
Reconstruc
tion
project of
1,354,13 1,163,58 117,935, 1,281,52 106,875, 45,989,6
coke dry 95.01% 100% 5.10% Other
2,000.00 6,592.69 327.78 1,920.47 819.78 16.80
cooling of
No.2 Coke
Workshop
Production
line of
electro-gal 1,244,50 1,090,50 145,892, 1,236,40 183,155, 30,883,8
vanized 99.78% 100% 5.10% Other
steel plates 0,000.00 9,377.96 272.15 1,650.11 876.21 43.16
for
automobile
Environme
ntal
reconstruct
ion of
converter 1,778,64 581,647, 22,834,2 451,257, 153,224, 127,847, 22,583,3
and the 84.32% 90% 5.10% Other
180t
4,000.00 629.27 48.54 765.88 111.93 567.31 29.89
dephospho
rization
converter
360 M2
1,277,73 466,556, 554,105, 46,681,5 973,980, 35,595,2 25,132,7
sintering 80.15% 85% 5.10% Other
8,000.00 730.02 269.43 74.94 424.51 90.38 88.66
machine
Reconstruc
tion of 332,870, 279,613, 4,230,92 279,613, 4,230,92
85.27% 90% Other
hot-rolling 000.00 089.64 9.56 089.64 9.56
equipment
The new
energy
284,100, 218,595, 26,468,6 18,477,7 226,586, 35,162,6 10,896,5
control 86.26% 90% 5.10% Other
000.00 249.81 27.93 24.01 153.73 07.14 90.68
center
project
Informatiz
390,380, 183,662, 39,726,2 223,389, 34,177,9 9,174,54
ation 90.00% 96% 5.10% Other
000.00 781.72 66.91 048.63 72.63 0.49
project
Softening
water 75,540,0 62,631,4 3,259,48 65,890,8 2,918,15
87.23% 100% Other
supplying 00.00 14.86 0.98 95.84 0.76
project
Upgrade
the
surface
58,500,0 50,023,3 50,023,3
quality 87.00% 100% Other
00.00 98.37 98.37
of Benxi
Steel
Poxiang
133
Bengang Steel Plates Co., Ltd. Annual Report 2015
strip
detector
Benxi
Puxiang
enhance
product
111,650, 80,122,2 80,122,2
quality 72.00% 100% Other
000.00 49.90 49.90
equipme
nt
upgrade
project
Departm
ent of
transport
ation
passenge
r
dedicate 55,980,0 41,847,8 6,147,87 47,995,6 2,670,86 1,219,97
85.74% 90% 5.10% Other
d to 00.00 18.94 1.80 90.74 2.49 1.88
supporti
ng the
transfor
mation
of the
South
Silicon
steel 934,450, 26,313,6 26,313,6 16,197,7
88.00% 100% Other
engineeri 000.00 18.46 18.46 45.48
ng
62,393,7 1,371,18 1,203,27 555,281. 229,752, 4,345,16 3,660,15
Other 0.00 5.10% Other
03.15 9,422.43 5,374.47 85 469.26 4.93 0.53
14,867,6
6,126,17 4,260,58 4,739,57 555,281. 5,646,62 854,094, 373,652,
Total 64,000.0 -- -- --
5,722.67 3,114.54 9,262.09 85 4,293.27 897.58 470.80
0
Notes: The mortgage loan at the year-end is the mortgage loan of RMB 14,220 thousand provided from
Bengang Group Finance Co., Ltd. to subsidiary Dalian Benruitong Automobile Material Technology Co., Ltd
(hereinafter referred to as Dalian Benruitong). Collateral for the mortgage is Dalian Benruitongs
manufacturing equipment and the highest mortgage balance is RMB 110,000 thousand. From the financial
company to obtain 100 million yuan credit.
The pledge loan at the year-end includes domestic orders financing short-term loan RMB 1,396,740,000.00
acquired from Industrial & Commercial Bank of China Benxi Branch, export commercial bill financing
134
Bengang Steel Plates Co., Ltd. Annual Report 2015
short-term loan USD 370,135,200.00 acquired from Agricultural Bank of China Benxi Branch, and receivable
factor short-term loan RMB 200,000,000.00 acquired from Agricultural Bank of China Benxi Branch.
(3) Impairment provision provided on construction in process
In RMB
Items Provided this period Reason to provide
Other notes
14. Project material
In RMB
Items Closing balance Opening balance
Special equipment 4,152,880.79 90,221,101.46
Total 4,152,880.79 90,221,101.46
Other notes
Balance of project goods decreased by RMB886,068,220.67 (95.40%) from the opening balance, which was caused by
increasing of delivery of equipment purchased for reconstruction project of high strength steel production.
15. Intangible assets
(1) Profiles of intangible assets
In RMB
Non-patent
Items Land using right Patent Computer software Total
technologies
I. Original book
value
1. Opening
296,245,314.76 141,509.43 296,386,824.19
balance
2. Increased this
period
(1) Purchase
(2) Internal
R&D
(3) Increased
by merger
3. Decreased this
period
(1) Disposal
4. Closing
296,245,314.76 141,509.43 296,386,824.19
balance
II. Accumulative
amortizing
135
Bengang Steel Plates Co., Ltd. Annual Report 2015
1. Opening
24,913,882.78 12,971.66 24,926,854.44
balance
2. Increased this
5,924,906.29 14,150.89 5,939,057.18
period
(1) Provision 5,924,906.29 14,150.89 5,939,057.18
3. Decreased
this period
(1) Disposal
4. Closing
30,838,789.07 27,122.55 30,865,911.62
balance
III. Impairment
provision
1. Opening
balance
2. Increased this
period
(1) Provision
3. Decreased
this period
(1) Disposal
4. Closing
balance
IV. Book value
1. Book value
265,406,525.69 114,386.88 265,520,912.57
at end of period
2. Book value
at beginning of 271,331,431.98 128,537.77 271,459,969.75
period
There isnt any intangible asset constituted by internal R&D in the period.
(2) Property certificate not granted yet:
In RMB
Items Book value Reason for certificate not granted
Other notes
16. Deferred income tax assets/ deferred income tax liabilities
(1) Deferred income tax asset not deducted
In RMB
Closing balance Opening balance
Items Deductible provisional Deferred income tax Deductible provisional Deferred income tax
differences asset differences asset
136
Bengang Steel Plates Co., Ltd. Annual Report 2015
Asset impairment
734,875,006.26 183,718,751.57 311,856,259.50 77,964,064.88
provision
Internal trade profit not
-20,995,185.07 -5,248,796.27 57,740,326.46 14,435,081.62
realized
Deductible loss 1,494,830,936.71 373,707,734.18
Depreciation or
333,978,859.03 83,494,714.76 333,978,859.03 83,494,714.76
amortization difference
Welfare for retired
6,946,500.22 1,736,625.06 8,513,359.96 2,128,339.99
employee
Employee wages payable 18,088,405.91 4,522,101.48 13,889,056.69 3,472,264.17
Total 2,567,724,523.06 641,931,130.78 725,977,861.64 181,494,465.42
(2) Deferred income tax liabilities not deducted
In RMB
Closing balance Opening balance
Items Taxable provisional Deferred income tax Taxable provisional Deferred income tax
difference liability difference liability
(3) Deferred income tax asset or liability at net amount after deduction
In RMB
Amount neutralized Closing balance of Amount neutralized Opening balance of
between deferred income deferred income tax asset between deferred income deferred income tax asset
Items
tax asset and liability at or liability after tax asset and liabilities at or liability after
end of period deduction opening of period deduction
Deferred income tax
641,931,130.78 181,494,465.42
asset
(4) Details of unrecognized deferred income tax asset
In RMB
Items Closing balance Opening balance
Deductible loss 2,912,363,442.38 476,157,419.26
Total 2,912,363,442.38 476,157,419.26
(5) Deductible losses of unrecognized deferred income tax asset due in next period
In RMB
Year Amount at end of term Initial amount Note
137
Bengang Steel Plates Co., Ltd. Annual Report 2015
2016 796,317.70
2017 405,383,631.05 405,183,089.47
2018 267,988,139.50 70,178,012.09
2019 179,596,211.65
2020 2,059,395,460.18
Total 2,912,363,442.38 476,157,419.26 --
Other notes:
17. Short-term loans
(1) Categories of short-term loans
In RMB
Items Closing balance Opening balance
Pledge loan 1,966,875,200.00
Mortgage loan 14,220,000.00
Guarantee loan 10,586,898,400.00 10,609,754,000.00
Credit loan 5,571,891,996.60 7,578,191,675.93
Total 18,139,885,596.60 18,187,945,675.93
Statement on categories of short-term loans.
The closing pledge loan includes the domestic order financing short-term loan, 1,396,740,000 yuan, borrowed
from ICBC Benxi Branch, exporter bill financing short-term US dollar loan, amounting to 370,135,200 yuan,
borrowed from business department of ABC Benxi Branch, and accounts payable factoring, 200,000,000 yuan,
acquired from business department of ABC Benxi Branch. The closing mortgage loan is that Benxi Iron& Steel
Group Financial Co., Ltd. Provides a mortgage loan of 14,220,000 yuan for its subsidiary Dalian Benruitong
Automobile Material Technolgoy Co., Ltd. (hereinafter referred to as ”Dalian Benruitong”), with the production
equipment of Dalian Benruitong as the guarantee, and the highest blanace of security guarantee is 110,000,000
yuan.
Short-term loans expired but not repaid was RMB0.00 at end of period, including material amounts as following:
In RMB
Loans from Closing balance Interest rate Date of mature Overdue interest
Other notes:
18. Notes payable
In RMB
Categories Closing balance Opening balance
Bank acceptance 2,110,511,950.79 822,581,591.46
138
Bengang Steel Plates Co., Ltd. Annual Report 2015
Total 2,110,511,950.79 822,581,591.46
Notes payable mature as of end of period was RMB0.00.
19. Account payable
(1) Payables
In RMB
Items Closing balance Opening balance
Trade payable 4,045,710,114.68 7,845,961,373.04
Labour service 47,556,941.28 24,340,661.56
Project and equipment accounts payable 455,338,318.37 501,029,342.01
Maintaining 464,461,747.57 407,080,221.51
Others 2,833,542.57 2,537,206.06
Total 5,015,900,664.47 8,780,948,804.18
(2) Material payable aged over 1 year
In RMB
Items Closing balance Reason of not paid or transferred
Benxi Iron steel （Group）Mining Co., Ltd. 675,232,923.26 Not cleared yet
Zhongye Jiaonai Engineering Technology
77,144,807.61 Not cleared yet
Co., Ltd.
Jixi Huasheng Fengyuaxuan Coal Co., Ltd. 66,005,916.07 Not cleared yet
Hangzhou Tianshen Material Co., Ltd. 21,330,633.40 Not cleared yet
Total 839,714,280.34 --
Other notes:
20. Account received in advance
(1) Advances received
In RMB
Items Closing balance Opening balance
Trade collected in advance 1,815,443,452.05 3,144,418,091.52
Total 1,815,443,452.05 3,144,418,091.52
139
Bengang Steel Plates Co., Ltd. Annual Report 2015
(2) Material advances received for over 1 year
In RMB
Items Closing balance The reason for not repaid or carried forward
21. Wage payable
(1) Wage payable
In RMB
Items Opening balance Increased this period Decreased this period Closing balance
I. Short-term wages 26,870,591.59 1,646,064,041.64 1,643,425,989.69 29,508,643.54
II. Post-job welfare –
261,368,947.32 261,368,947.32
provision plan
III. Dismissing
8,513,359.96 49,910.91 1,616,770.65 6,946,500.22
compensation
Total 35,383,951.55 1,907,482,899.87 1,906,411,707.66 36,455,143.76
(2) Short-term wages
In RMB
Items Opening balance Increased this period Decreased this period Closing balance
(1) Salary, bonus,
16,980,558.52 1,325,523,468.43 1,322,213,535.48 20,290,491.47
allowance and subsidy
(2) Employee welfare 26,364,154.99 26,364,154.99
(3) Social Insurance 666,677.44 121,228,999.24 121,242,204.74 653,471.94
Including: Medical
89,315,611.21 89,315,611.21
insurance
Work injury
666,677.44 31,909,377.38 31,922,582.88 653,471.94
insurance
Maternity
4,010.65 4,010.65
insurance
(4) Housing 6,853,473.00 132,967,780.72 132,971,620.72 6,849,633.00
(5) Union funds and staff
2,367,273.37 38,975,393.60 39,630,229.10 1,712,437.87
education fee
Others 2,609.26 1,004,244.66 1,004,244.66 2,609.26
Total 26,870,591.59 1,646,064,041.64 1,643,425,989.69 29,508,643.54
(3) Defined contribution plans
In RMB
140
Bengang Steel Plates Co., Ltd. Annual Report 2015
Items Opening balance Increased this period Decreased this period Closing balance
Basic pension fund 249,181,176.27 249,181,176.27
Unemployment insurance 12,187,771.05 12,187,771.05
Total 261,368,947.32 261,368,947.32
Other notes:
22. Tax payable
In RMB
Items Closing balance Opening balance
VAT 23,631,817.37 9,556,213.59
Operational tax -47,954.05 246,231.69
Enterprise income tax 6,788,181.39 12,951,594.58
City maintenance and construction tax 2,015,344.46 302,020.62
Property tax 1,475,601.50 246,528.48
Education surtax 10,211,765.05 7,953,883.39
Others 1,119,772.63 1,066,709.41
Total 45,194,528.35 32,323,181.76
Other notes:
23. Interest payable
In RMB
Items Closing balance Opening balance
Long-term loan interest with installments 5,080,000.00
Interest of corporation bond 70,113,698.63
Short-term borrowing interests payable 844,988.33 21,855,067.99
Total 70,958,686.96 26,935,067.99
Material overdue interest payments:
In RMB
Loans from Amount overdue Causation of overdue
Other notes:
141
Bengang Steel Plates Co., Ltd. Annual Report 2015
24. Other account payable.
(1) Other payables disclosed by nature
In RMB
Items Closing balance Opening balance
Deposit 3,280,020.39 3,698,444.41
Deposit 128,048,589.14 121,211,291.67
Current account 270,090,696.48 295,686,710.10
Others 43,315,398.89 48,719,569.65
Total 444,734,704.90 469,316,015.83
(2) Significant other payables ageing over one year
In RMB
Items Closing balance Unpaid/un-carry over reason
Benxi Steel (Group) Ltd. 179,539,999.52 Not cleared yet
Guangzhou Benjin Electronic &
10,088,825.00 Not cleared yet
Machinery Equipment Co., Ltd.
Total 189,628,824.52 --
Other notes:
25. Non-current liabilities due in one year
In RMB
Items Closing balance Opening balance
Long-term loans due in 1 year 944,004,649.14 591,740,000.00
Long-term account payable due in 1 year 490,000,000.00
Total 1,434,004,649.14 591,740,000.00
Other explanation:
On December 30, 2015, the company signed a Financing After-sales Leaseback Contract with Liaoning Hengyi
Financing Leasing Co., Ltd. (hereinafter referred to as ”Hengyi Leasing”), with the purchasing price of leasing
assets of 490,000,000 and the leasing term from December 30, 2015 to December 30, 2016.
26. Long-term loans
(1) Categories of long-term loans
In RMB
142
Bengang Steel Plates Co., Ltd. Annual Report 2015
Items Closing balance Opening balance
Guarantee loan 995,919,974.09 642,377,465.85
Credit loan 10,000,000.00 172,250,000.00
Total 1,005,919,974.09 814,627,465.85
Statement on categories of long-term loans:
Other statements, including interest scales:
27. Bond payable
(1) Bond payable
In RMB
Items Closing balance Opening balance
Corporate bond 1,490,352,572.75
Total 1,490,352,572.75
(2) Change of bond payable (exclude other financial instruments such as preference shares or perpetual
liabilities)
In RMB
15
1,500,000 February 1,500,000 1,500,000 9,647,427 1,490,352
Bengang 3 years
,000.00 5,2015 ,000.00 ,000.00 .25 ,572.75
01
1,500,000 1,500,000 9,647,427 1,490,352
Total -- -- --
,000.00 ,000.00 .25 ,572.75
(3) Statement on conditions and date of corporation bond converting to shares
(4) Statement on other financial instruments categorized as financial liabilities
Particulars about other financial instruments issued externally such as preference shares or perpetual bonds.
Change of financial instruments issued externally such as preference shares or perpetual bonds
In RMB
Financial At beginning of term Increased this period Decreased this period At end of term
instruments
issued Amount Book value Amount Book value Amount Book value Amount Book value
externally
Statements on basis of categorizing of other financial instruments as financial liabilities.
Other statements
143
Bengang Steel Plates Co., Ltd. Annual Report 2015
Statement about bonds payable:
The company issued bonds publicly on February 5, 2015. The face value was 1,500,000,000 yuan, and there were
1500 million shares, with the face value per share of 100 yuan. The issuance price was 100 yuan/ share, with a
period of 3 years and the nominal interest rate of 5.17%. The value date was February 5, 2015 and the interest
payment date is February 5 in three consecutive years, ranging from 2016 to 2018. The interest is paid annually
and the principal shall be paid at a time upon the expiration.
Benxi Iron& Steel Group Co., Ltd. provides a joint liability guarantee for the corporate bond publicly issued this
time in full, unconditionally and irrevocably. The scope of guarantee includes the principle, interest, liquidated
damage, damage awards, expenses spent on actualization of creditors rights of the bonds. The term of guarantee
commences on the bond issuance date and ends in 12 months after the expiry of bonds.
28. Deferred income
In RMB
Decreased this
Items Opening balance Increased this period Closing balance Cause
period
Government subsidy 427,524,000.00 10,700,000.00 25,036,000.00 413,188,000.00
Total 427,524,000.00 10,700,000.00 25,036,000.00 413,188,000.00 --
Government subsidy items involved:
In RMB
Amount
New subsidy in transferred to Asset-related or
Liability projects Opening balance Other changes Closing balance
current period non-operational income-related
income
Desulfuration
project of 220t/h 1,600,000.00 800,000.00 800,000.00 Related to assets
furnace
MES project fund 8,600,000.00 1,720,000.00 6,880,000.00 Related to assets
Environment
treatment project 1,080,000.00 540,000.00 540,000.00 Related to assets
of Benxi City
Second batch of
Funding for
National Cleaned
2,400,000.00 800,000.00 1,600,000.00 Related to assets
Manufacture
Demonstration
Project
Subsidiary for
industrial energy
control center 11,600,000.00 11,600,000.00 Related to assets
demonstration
project
Environment 22,942,000.00 5,234,000.00 17,708,000.00 Related to assets
144
Bengang Steel Plates Co., Ltd. Annual Report 2015
Pollution
Renovation
Project
Environment
Renovation
Project and
2,180,000.00 500,000.00 1,680,000.00 Related to assets
Regional Basin
Environment
Protection Project
Energy-saving
Technological
Transformation 8,862,000.00 2,954,000.00 5,908,000.00 Related to assets
Fiscal Reward
Project
Cool rolling high
strength steel 250,000,000.00 250,000,000.00 Related to assets
rebuilding
desulfuration
project of 2*265
2,000,000.00 1,000,000.00 1,000,000.00 Related to assets
square meter
burnning line
Water treatment
project of 2*265
6,760,000.00 3,380,000.00 3,380,000.00 Related to assets
square meter
burnning line
Reconstruction of
dust remover of
120,000.00 60,000.00 60,000.00 Related to assets
the 360m3
burnning line
Automobile
High-class
Electrolytic Zinc
41,040,000.00 41,040,000.00 Related to assets
Steel Plate
Production Line
Project
Heat recycling
and disulfuration
21,020,000.00 4,204,000.00 16,816,000.00 Related to assets
project of the
burnning line
Water treatment
factory
4,500,000.00 1,500,000.00 3,000,000.00 Related to assets
reconstruction
project
Fund for
introducing of
4,000,000.00 4,000,000.00 Related to assets
overseas R&D
team
Disulfuration
project of the 7
24,000,000.00 24,000,000.00 Related to assets
boilers of the
Power Plant
145
Bengang Steel Plates Co., Ltd. Annual Report 2015
Waste liquid
processing
400,000.00 100,000.00 300,000.00 Related to assets
project of Coke
Factory
Special fund for
importing of
14,420,000.00 884,000.00 13,536,000.00 Related to assets
overseas
technologies
Benggang
Automobile sheet
engineering 1,000,000.00 1,000,000.00 Related to assets
laboratory of
Engineering
Research and
development of
high strength
2,900,000.00 2,900,000.00 Related to assets
steel for third
generation
automobile
Flue gas
desulfurization
1,000,000.00 200,000.00 800,000.00 Related to assets
project of the 360
burnning line
Special funds for
environmental 5,800,000.00 1,160,000.00 4,640,000.00 Related to assets
protection
Total 427,524,000.00 10,700,000.00 25,036,000.00 413,188,000.00 --
Other statements
1. 220t/h Boiler Desulfurization: According to “Notice about the first batch of Provincial Environmental Protection Special
Funding Project of 2006” (Liao Huan Fa 2006 No. 65) and “Notice about the first batch of Provincial Environmental Protection
Special Funding Project of 2008” (Liao Huan Fa 2008 No. 29) issued by Department of Environmental Protection of Liaoning
Province and Liaoning Provincial Finance Department, RMB 4 million was received for this project. The project was completed
in December 2011 and the funding was to be amortized in the next 5 years from 2012.
2. MES Project Special Fund: According to “Notice about National Budget Investment Plan of 2010 of Key Industry
Development and Technology Innovation (3rd batch) and Industrial SMEs Technology Innovation of Benxi” (Ben Fa Gai Fa
2010 No. 285) issued by Benxi Development and Reform Commission, Benxi Economy and Informatization Commission and
Benxi SME Bureau, RMB 8.6 million was received for this project. The project was completed in December 2014 and the
funding was to be amortized in the next 5 years from 2015.
3. Municipal Environmental Pollution Renovation Project: According to “Notice about Benxi Environmental Pollution
Renovation Project of 2011” (Ben Huan Fa 2011 No. 53) issued by Bureau of Environmental Protection of Benxi and Bureau
of Finance of Benxi, RMB 2.7 million was received and used for the reform of 265 square meters sinter machine tail ESP and the
reform of three car tipplers dumpers with new spray and dust catcher facilities in raw material plant 2. The project was
completed and the funding was to be amortized in the next 5 years from 2012.
4. Second batch of Funding for National Cleaned Manufacturing Demonstration Project: According to “Notice about the second
batch of Funding for National Cleaned Manufacturing Demonstration of 2013” (Cai Jian 2013 No. 681) issued by Ministry of
Finance of PRC, RMB 4 million was received and used for the reform of the phenol cyanide sewage treatment system in coking
plant. The project was completed in 2013 and the funding was to be amortized in the next 5 years from 2013.
5. Industrial Enterprise Energy Management Center Construction Demonstration Project: According to “Notice about
Appropriation of Governmental Subsidy of Industrial Enterprise Energy Management Center Construction Demonstration
146
Bengang Steel Plates Co., Ltd. Annual Report 2015
Project of 2009” (Liao Cai Zhi Qi 2009 No. 868) issued by Liaoning Provincial Finance Department, RMB 11.6 million was
received for this project for the construction of new energy controlling center. The project is under implementation.
6. Environment Pollution Renovation Project: According to “Notice about Appropriation of Funding Plan of Benxi Environment
Pollution Renovation Project” (Ben Huan Fa 2012 No. 78) issued by Bureau of Environmental Protection of Benxi, RMB 12.07
million was received and used for the reform of environmental protection facilities in coking plant and iron making plant. The
project was completed in 2013 and the funding is amortized in the next 5 years from 2013.
In 2014, according to “Notice about the first batch of Benxi Environmental Protection Special Funding Project of 2013” (Ben
Huan Fa 2013 No. 85) issued by Bureau of Environmental Protection of Benxi, another RMB 14.10 million was received and
used for the one 360 Square meter mesintering machine desulfurization project in iron works. The project was completed in
2014 and the funding was to be amortized in the next 5 years from 2015.
7. Environment Renovation Project and Regional Basin Environment Protection Project: According to “Notice about the second
batch of Funding Plan of Benxi Environment Renovation Project and Regional Basin Environment Protection Project” (Ben
Huan Fa 2012 No. 81) issued by Bureau of Environmental Protection of Benxi, RMB 2 million was received. Among the
received funding, 1.7 million was used for one 265 Square meter mesintering machine desulfurization project. This project was
completed in 2014 and the funding was to be amortized in the next 5 years. The other 0.3 million was used for the renovation of
batching and dust eliminating of the second sintering plant of iron making plant. This project was completed in 2013 and the
funding was to be amortized in the next 5 years.
In 2014, according to “Notice about the Funding Plan of The Blue Sky Project 0f 2013” (Ben Cai Fa 2014 No. 52), RMB 0.4
million was received and used for the renovation of dust elimination project of the iron making plant. The project was completed
in 2013 and the funding was to be amortized in the next years.
8. Energy-saving Technological Reform Fiscal Reward Project: According to “Notice about the first batch of Implementation
Plan of Energy-saving Technological Reform Fiscal Reward Project” (Fa Gai Huan Zi 2009 No. 2483) issued by National
Development and Reform Commission, RMB 14.77 million was received and used for the Boiler Reform Project of CCPP in
power plant. The project was completed in 2013 and the funding was to be amortized in the next 5 years from 2013.
9. High Strength Cool-rolling Renovation Project: According to “Notice about Appropriation of Enterprise Technology Reform
Loan Fiscal Subsidy of 2012” (Liao Cai Zhi Qi 2012 No. 715) issued by Liaoning Provincial Finance Department, RMB 50
million was first received. Then in 2013 another RMB 50 million was received according to “Notice about Appropriation of the
forth Fiscal Subsidy Plan for Enterprise Technology Reform” (Liao Jing Xin Tou Zi 2013 No. 241) issued by Liaoning
Provincial Economy and Informatization Commission and Liaoning Provincial Finance Department, and RMB 100 million was
received according to “Notice about National Budget Investment Project Subsidy for Technology Reform of 2012” (Fa Gai Ban
Chan Ye 2012 No. 1642) issued by Office of National Development and Reform Commission and Office of Ministry of Industry
and Details Technology of PRC in current period. In 2014, 50 million was received according to the “Notice about Appropriation
of the second batch of Discount Interest Funds for the Loans for Enterprise Technical Reformation of 2014” (Liao Cai Zhi Qi
2014 No. 289) issued by Liaoning Provincial Finance Department. The project is expected to be completed in 2016.
10. 2*265 Square Meter Sintering Machine Desulfurization Project: According to “Notice about the second batch of Budget of
Environmental Protection Special Funding Project of 2009 in Liaoning Province” (Liao Cai Zhi Jing 2009 No. 1076) issued by
Liaoning Provincial Finance Department, RMB 5 million was received for this project. The project was completed in December
2011 and the funding was to be amortized in the next 5 years from 2012.
In 2014, according to “Notice about the Funding Plan of The Blue Sky Project 0f 2013” (Ben Cai Fa 2014 No. 52), another
RMB 0.6 million was received and the fund was transferred into profit and loss of current period.
11. 2*265 Square Meter Sintering Machine Polluted Water Project: According to “Notice about Budget of National Pollution
Discharge Special Funding Project of 2009” (Liao Cai Zhi Jing 2009 No. 1153) issued by Liaoning Provincial Finance
Department, RMB 16.90 million was received for this project. The project was completed in December 2011 and the funding was
to be amortized in the next 5 years from 2012.
12. Automobile High-class Electrolytic Zinc Steel Plate Production Line Project : According to “Notice about Key Industry
Revitalization and First Technology Reform Project Construction Expansion and National Debt Investment Budget” issued by
Liaoning Provincial Development and Reform Commission, RMB 41.04 million was received for this project. The project was
completed in December 2015 and the funding was to be amortized in the next 5 years from 2016.
13. Sintering Machine Residue Heat Usage and Desulfurization Project: According to “Notice about the third batch of National
Budget of Investment Plan for Key Industrial and Technology Reform Project of 2011” (Liao Fa Gai Tou Zi 2011 No. 1319)
issued by Liaoning Provincial Development and Reform Commission, a total amount of RMB 21.02 was to be appropriated. First
RMB 17.86 million was received for this project in 2012. In 2014, another RMB3.16 million was received. The project was
completed in 2014 and the funding was to be amortized in the next 5 years from 2015.
14. Polluted Water Treatment Project: According to “Notice about the third batch of National Funding for Environmental
Pollution Renovation Project of Liaohe Basin” (Liao Cai Zhi Jing 2010 No. 1072) issued by Liaoning Provincial Finance
Department, RMB 7.5 million was received for this project. The project was completed in December 2013 and the funding was to
be amortized in the next 5 years from 2013.
147
Bengang Steel Plates Co., Ltd. Annual Report 2015
15. Overseas R&D Team Introduction Fund:
1) According to “Notice about Appropriation for Overseas R&D Team Introduction Funding Supported by The Government of 2008”
(Liao Wai Zhuan 2008 No. 71) issued by Liaoning Provincial Administration of Foreign Experts Affairs, RMB 1 million was
received for overseas R&D team introduction of cold-rolling grain-oriented silicon steel project. This project is now under
implementation.
2)According to “Notes about Project of Overseas R&D Team Introduction in Liaoning Province” (Liao Wai Zhuan Han 2012 No. 47)
issued by Liaoning Provincial Administration of Foreign Experts Affairs, RMB 0.5 million was received for overseas R&D team
introduction of the manufacture technology of electro-galvanizing plate used in automobile. This project is now under
implementation.
3)According to “Notice about Project of Overseas R&D Team Introduction in Liaoning Province” (Liao Wai Zhuan Han 2012 No.
48) issued by Liaoning Provincial Administration of Foreign Experts Affairs, RMB 0.5 million was received for overseas R&D team
introduction of the manufacture technology of cold-rolling steel with high strength used in automobile. This project is now under
implementation.
4)According to “Notice about Project of Overseas R&D Team Introduction in Liaoning Province” (Liao Wai Zhuan Han 2013 No.
46) issued by Liaoning Provincial Administration of Foreign Experts Affairs, RMB 0.5 million was received for overseas R&D team
introduction of the manufacture technology of 300 series stainless steel cold-rolling. This project is now under implementation.
5) According to “Notice about Project of Overseas R&D Team Introduction in Liaoning Province” (Liao Wai Zhuan Han 2013 No.
47) issued by Liaoning Provincial Administration of Foreign Experts Affairs, RMB 0.5 million was received for overseas R&D team
introduction of the reform of the cooling equipment used in 2300 series hot-rolling line. This project is now under implementation.
6) According to “Notes about Project of Overseas R&D Team Introduction in Liaoning Province” (Liao Wai Zhuan Han 2013 No.
137) issued by Liaoning Provincial Administration of Foreign Experts Affairs, RMB 0.5 million was received for the production of
automobile cold rolled dual phase steels. This project is now under implementation.
7) According to “Notes about Project of Overseas R&D Team Introduction in Liaoning Province” (Liao Wai Zhuan Han 2014 No. 54)
issued by Liaoning Provincial Administration of Foreign Experts Affairs, RMB 0.5 million was received the production of hot dip
galvanized sheet of high surface quality for automobile. This project is now under implementation.
16. 7 Boilers Flue Gas Desulfurization Renovation Project: According to “Notice about the Budget Index of the second batch of
Provincial Environmental Protection Special Funding Project of 2014” (Liao Cai Zhi Jing 2014 No. 338) issued by RMB 2.4
million was received. The Company implemented the flue gas desulfurization renovation of three 240t/h boilers, two coal-fired high
pressure boilers and one gas fired high pressure boiler. The project is under implementation.
17. Management and Salt Extracting of Desulfurization Waste Project: According to “Notice about the first batch of Benxi
Environmental Protection Special Funding Project of 2013” (Ben Huan Fa 2013 No. 85) issued by Bureau of Environmental
Protection of Benxi, RMB 0.5 million was received. The project was completed in December 2013, and the funding was to be
amortized in the next 5 years from 2014.
18. Overseas Advanced Technology Introduction Funding:
1) According to “Note about the Appropriation of the Provincial Special Funding for Introduction of Overseas Advanced Technology
of 2013” (Liao Cai Zhi Qi 2013 No. 1084) issued by Liaoning Provincial Finance Department, RMB 10 million was received and
used for the production technology progress of high-grade electro galvanized sheet. This project is now under implementation.
2) According to “Note about the Appropriation of the Provincial Special Funding for Introduction of Overseas Advanced Technology
of 2013” (Liao Cai Zhi Qi 2013 No. 1084) issued by Liaoning Provincial Finance Department, RMB 4.42 million was received and
used for the technology progress of 1700MM unit. The project was completed in December 2014 and the funding was to be
amortized in the next 5 years from 2015.
19. In accordance with the Issuance of Notice on the Basic Construction of the Third Batch of Project Investment
Plan in Benxi 2014 (No. 339 of BFG[2014]), Benxi auto sheet engineering labaratory project was applied and the
company received a subsidy of 1 million yuan from Benxi Bureau of Finance, This project is now under implementation.
20. In accordance with the Notice on Project Approval of of the First Batch of Scientific Technology Plan in
Liaoning 2015(Liaoning Scientific Technology Office), the R&D project of third-generation auto high-strength
steel was submitted and the company received a subsidy of 2.9 million yuan from Liaoning Finance Department,
This project is now under implementation.
21. In accordance with the Issuance of Notice on Blue Sky Engineering Project Capital Plan 2014 (No.20 of
BCF[2015]), the 360 sintering machine flue gas desulfurization project in iron works was submitted and the
company received the project asset of 1 million yuan from Benxi Bureau of Finance. The project was completed in
December 2014 and the funding was to be amortized in the next 5 years from 2015.
22. In accordance with the Special Environmental Protection Funds in Benxi 2014(No. 104 of BHF[2014]) special
environmental protection funds were applied, and the company received a subsidy of 5.8 million yuan from Benxi
Bureau of Finance. Wherein, 1 million was used for disposing the smoke dust produced from 3 sets of 220 T/H
coal-fired boilers in the power station, and the project was completed in 2014 and since 2015, it was transformed
148
Bengang Steel Plates Co., Ltd. Annual Report 2015
into profit and loss in 5 years; 1.8 million yuan was used for the low-nitrogen combustion transformation for one
set of 220 T/H coal-fired boiler, The project was completed in December 2014 and the funding was to be amortized in the next
5 years from 2015.while the rest 3 million yuan was used for transforming the fuel dust remover in the second
sintering plant. The project was completed in December 2014 and the funding was to be amortized in the next 5 years from 2015.
29. Share capital
In RMB
Changed（+，-）
Balance in Capitalization Balance in
Issuance of
year-begin Bonus shares of public Other Subtotal year-end
new share
reserve
Total of capital 3,136,000,000. 3,136,000,000.
shares 00 00
Other notes：
30. Capital reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Capital premium 8,998,928,073.23 8,998,928,073.23
Other capital reserves 115,917,468.82 115,917,468.82
Total 9,114,845,542.05 9,114,845,542.05
Notes：
31. Other comprehensive income
In RMB
Reporting period
Less：Amount
transferred
into profit and
loss in the
Amount current period After-tax After-tax
Opening Less： Closing
Items s incurred urrent period attribute to attribute to
balance Inomce tax balance
before that the parent minority
expense
income tax recognized compaqny shareholder
into other
comprehensive
income in
prior period
Other notes：
149
Bengang Steel Plates Co., Ltd. Annual Report 2015
32. Special reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Safety production cost 430,777.94 35,035,241.18 35,072,647.07 393,372.05
Total 430,777.94 35,035,241.18 35,072,647.07 393,372.05
Notes：
33. Surplus reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Statutory surplus
961,105,529.85 961,105,529.85
reserves
Total 961,105,529.85 961,105,529.85
Notes ：
34. Retained profits
In RMB
Items Reporting period Last period
Opening balance of retained profits before
2,172,180,473.24 2,100,587,079.16
adjustments
Opening balance of retained profits after
2,172,180,473.24 2,100,587,079.16
adjustments
Add: Net profit attributable to owners of the
-3,293,624,545.17 232,804,820.19
Company
Less: Withdrawal of statutory surplus reserves 4,411,426.11
Dividend of common stock payable 156,800,000.00 156,800,000.00
Closing retained profits -1,278,244,071.93 2,172,180,473.24
List of adjustment of opening retained profits: 1) RMB0.00 opening retained profits was affected by retrospective adjustment
conducted according to the Accounting Standards for Business Enterprises and relevant new regulations. 2) RMB0.00 opening
retained profits was affected by changes on accounting policies. 3) RMB0.00 opening retained profits was affected by correction of
significant accounting errors. 4) RMB0.00 opening retained profits was affected by changes in combination scope arising from same
control. 5) RMB0.00 opening retained profits was affected totally by other adjustments.
35. Operating income and operating cost
In RMB
Items 2015 2014
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Bengang Steel Plates Co., Ltd. Annual Report 2015
Revenue Cost Revenue Cost
Principal business 27,452,962,527.12 28,154,149,434.65 39,041,774,116.14 36,352,691,545.89
Other business 1,800,676,078.68 1,657,745,582.20 2,380,313,909.56 2,136,427,480.54
Total 29,253,638,605.80 29,811,895,016.85 41,422,088,025.70 38,489,119,026.43
36. Business tax and surcharges
In RMB
Items 2015 2014
Business tax 274,427.66 458,953.40
City maintenance and construction tax 29,657,164.15 68,223,587.42
Educational surcharge 21,638,030.06 49,478,917.04
Total 51,569,621.87 118,161,457.86
Other notes：
37. Sales expenses
In RMB
Items 2015 2014
Freight 609,808,842.96 529,994,866.92
Port surcharges 199,336,639.67 144,715,016.86
Agency fee 54,293,066.93 76,696,525.74
Package fee 17,287,739.31 70,689,568.13
Salary and benefits 20,904,851.21 23,644,577.77
Other 17,479,359.29 17,338,581.67
Total 919,110,499.37 863,079,137.09
Other notes：
Sales expenses have increased by RMB 56,031,362.28 compared with last year at the rate of 6.49%. Its mainly because of the
increased external transportation expenditure which is caused by the increased settlement of CIF paid by our company.
38. Administrative expenses
In RMB
Items 2015 2014
Salary and benefits 233,971,706.69 261,461,752.56
Repair Fee 150,013,456.13 238,256,015.21
Taxes 92,514,576.97 97,438,517.02
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Bengang Steel Plates Co., Ltd. Annual Report 2015
Land use right fee 57,426,000.00 57,426,000.00
Depreciation 24,380,562.83 56,582,336.18
Social security expense 45,336,211.03 53,094,382.15
Pollution discharge fee 28,607,476.00 27,492,350.00
Water resources fee 17,001,160.00 17,063,680.00
Housing fund 10,146,420.00 11,427,050.00
Heating fee 6,809,717.20 10,801,016.24
Entertainment expense 4,226,627.81 5,342,597.66
Amortization of intangible assets 4,248,197.90 4,248,197.90
Freight 2,762,637.66 2,467,196.26
Lease expense 1,822,459.28 1,768,910.14
Other 54,666,090.38 54,754,297.97
Total 733,933,299.88 899,624,299.29
Other notes：
Administrative expenses have decreased by RMB 165,690,999.41 compared with last year at the rate of 18.42%，Its mainly because
our company has strengthened the budget index on the basis of market changes by taking measures to dramatically squeeze costs.
39. Financial expenses
In RMB
Items 2015 2014
Interest expenses 693,469,408.37 731,877,272.55
Less: Interest income 34,026,570.83 38,738,942.33
Exchange loss 376,746,455.44 -16,374,043.45
Other 27,128,162.49 40,528,566.62
1,063,317,455.47 717,292,853.39
Total 1,063,317,455.47 717,292,853.39
Other notes：
Financial expenses have increased by RMB 346,024,602.08 compared with last year at the rate of 48.24%. Its mainly because of the
increased exchange loss of foreign currency loans.
40. Asset impairment loss
In RMB
Items 2015 2014
1. Loss for bad debts 15,212,716.04 7,622,281.44
2. Impairment of investories 499,063,732.20 21,035,849.04
152
Bengang Steel Plates Co., Ltd. Annual Report 2015
Total 514,276,448.24 28,658,130.48
Other notes：
41. Investment income
In RMB
Items 2015 2014
Bank short-term financial products revenue 7,226,589.08 20,845,473.00
Total 7,226,589.08 20,845,473.00
Other notes：
The yield of banks financial products is actually the revenue earned by companies through buying the preservation-based financial
products.
42. Non-operating income
In RMB
The amount recognized in
Items 2015 2014
non-operating profit
Total of Non-current assets
19,820,758.05 7,296,356.96 21,206,096.82
disposal income
Including: Fixed assets disposal
21,206,096.82 7,296,356.96 21,206,096.82
income
Debt restructuring gain 12,200,032.42 5,940,400.95 12,200,032.42
Government subsidies 136,992,233.61 18,722,224.00 136,992,233.61
Fines and the penalty income 661,135.12 2,417,393.48 661,135.12
Other 4,994,858.60 2,738,756.29 4,994,858.60
Total 176,054,356.57 37,115,131.68 176,054,356.57
Government subsidies recorded into current profits and losses：
In RMB
Whether
Whether
influence the Related to the
Distribution Distribution Special Reporting Same period
Items Nuture type profits or assets/
entity reason subsidy or period of last year
losses of the income
not
year or not
Deferred
25,036,000.0 17,372,224.0
revenue
0 0
transfer
Special fund
for bringing 500,000.00
in R&D
153
Bengang Steel Plates Co., Ltd. Annual Report 2015
teams outside
China
Award fund
for closing
down
19,500,000.0
outdated
0
production
facilities and
saving energy
Special
assistance
91,456,233.6
fund for
1
environmenta
l protection
Government
50,000.00
financing
Tax returns 1,300,000.00
Enterprise
development 500,000.00
fund
136,992,233. 18,722,224.0
Total -- -- -- -- -- --
61 0
Other notes：
（1）Accroding to the Circular of the Shenyang Huali Energy Equipment Manufacturing Co., Ltd. Concerning the Close the 86
Projects of Bring in R&D Teams Exampled by “72.5KV and 126KV New Environmentally Friendly Gas Insulated Metal Enclosed
Switchgear” (Department of Labor and Social Security of Liaoning Province, No. 243, [2014] ), our company has received 500,000
yuan as assistance fund from the Bureau of Foreign Experts Affairs of Benxi city. The fund will be used to develop the project of the
hot rolling thicker high-end pipeline steel which has been finished in May, 2014. In 2015, the project has transfer profit and loss.
（2）Award fund for closing down outdated production facilities and saving energy. According to the Circular of Issuing the
Central-government Budget Index of Energy-saving Special Funds (Award for Closing Outdated Production Facilities) in 2014
(Financial Index Enterprises in Liaoning province, No. 1075, [2014]), our company has received 19,500,000 yuan as assistance fund
from Department of Finance of Liaoning province for awarding our demolition of two 4.3-meter coke ovens. The demolition work
has been finished in 2014. In 2015, the project has transfer profit and loss .
（3）The special assistance fund for environmental protection. According to the Circular of Special Assistance Fund for
Environmental Protection (Local Bureau of Finance, No. 174, [2014]), our company has received 91,456,200 yuan as the special
fund from the Bureau of Finance of Benxi city for the environmental protection cost. In 2015, the project has transfer profit and loss.
（4）Enterprise development fund. We have received the enterprise development fund from the Bureau of Finance of Dalian Bonded
Area.
43.Non-operating expense
In RMB
Items 2015 2014 The amount recognized in
154
Bengang Steel Plates Co., Ltd. Annual Report 2015
non-operating profit
Non-current assets disposal loss 24,039,513.56 10,297,285.52 24,124,620.55
Including: Fixed assets disposal
24,124,620.55 10,297,285.52 24,124,620.55
loss
Fines and overdue paymen 11,162.62 11,162.62
Total 24,135,783.17 10,297,285.52 24,135,783.17
Notes ：
44. Income tax expense
(1) Lists of income tax expense
In RMB
Items Reporting period Same period of last year year
Current income tax expense 20,638,504.62 35,650,711.67
Deferred income tax expense -461,028,720.78 3,292,576.49
Total -440,390,216.16 38,943,288.16
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Reporting period
Total profits -3,681,318,573.40
Current income tax expense accounted by tax and relevant
-920,329,643.34
regulations
Influence of income tax before adjustment 298,204.39
Influence of not deductible costs, expenses and losses 577,750.30
Influence of deductible losses of deferred income tax assets
-57,646,882.53
derecognized used in previous period
Influence of deductible temporary difference or deductible losses
536,710,355.02
of deferred income tax assets derecognized in reporting period.
Income tax expense -440,390,216.16
Other notes
45.Notes of statement of cash flows
1. Cash received related to other operating activities
In RMB
Items Reporting period Same period of last year
Withdraw of current accounts, advance for 205,201,226.09 202,468,658.12
155
Bengang Steel Plates Co., Ltd. Annual Report 2015
another
Interest income 34,026,570.83 38,738,942.33
Special subsidy income 122,656,233.61 108,680,000.00
Non-operating income 633,960.32 2,671,341.33
Other 30,870.87 2,800,404.53
Total 362,548,861.72 355,359,346.31
Notes ：
(2) Other cash paid relevant to operating activities
In RMB
Items Reporting period Same period of last year
Of which：Current account and advance
230,339,040.56 149,809,671.15
foranother
Administrative expenses 60,477,057.28 292,747,521.57
Sales expenses 56,331,692.81 91,416,865.68
Bank charges 3,807,258.40 6,460,084.12
Other 343,932.37 2,816,467.72
Total 351,298,981.42 543,250,610.24
Notes ：
(3) Other cash received relevant to investment activity
In RMB
Items Reporting period Same period of last year
Notes ：
(4) Other cash paid relevant to investment activity
In RMB
Items Reporting period Same period of last year
Notes ：
(5) Other cash received relevant to financing activities
In RMB
Items Reporting period Same period of last year
156
Bengang Steel Plates Co., Ltd. Annual Report 2015
Of which：Note , letter of guarantee and
310,000,000.00
credit
Financing lease 490,000,000.00
Total 800,000,000.00
Notes ：
(6) Other cash paid relevant to financing activitie
In RMB
Items Reporting period Same period of last year
Of which：Note , letter of guarantee and
371,791,357.66 338,513,571.57
credit
Financing service fee 27,605,690.09 7,568,482.50
Total 399,397,047.75 346,082,054.07
Notes ：
46. Supplementary information to cash flow statement
（1）Supplementary information to cash flow statement
In RMB
Supplementary materials Reporting period Last period
1. Reconciliation of net profit to net cash
-- --
flows generated from operating activities
Net profit -3,240,928,357.24 314,873,152.16
Add: Provision for impairment of assets 514,276,448.24 28,658,130.48
Depreciation of fixed assets, of oil-gas
1,824,882,394.51 1,998,507,273.26
assets, of productive biological assets
Amortization of intangible assets 5,939,057.18 5,939,057.18
Losses on disposal of fixed assets, intangible
assets and other long-term assets (gains: 2,918,523.73 3,000,928.56
negative)
Financial cost (gains: negative) 1,070,215,863.81 749,571,711.60
Investment loss (gains: negative) -7,226,589.08 -20,845,473.00
Decrease in deferred income tax assets
-460,436,665.36 3,292,576.49
(gains: negative)
Decrease in inventory (gains: negative) 1,998,873,344.78 522,343,929.65
Decrease in accounts receivable from 395,827,676.24 -45,175,455.87
157
Bengang Steel Plates Co., Ltd. Annual Report 2015
operating activities (gains: negative)
Increase in payables from operating
-4,409,347,664.91 -692,025,735.65
activities (decrease: negative)
Net cash flows generated from operating
-2,305,005,968.10 2,868,140,094.86
activities
2. Investing and financing activities that do
-- --
not involving cash receipts and payment:
3. Net increase in cash and cash equivalents -- --
Closing balance of cash 4,612,782,772.98 9,327,034,030.07
Less: Opening balance of cash 9,327,034,030.07 4,452,422,474.41
Net increase in cash and cash equivalents -4,714,251,257.09 4,874,611,555.66
(2) Net Cash paid of obtaining the subsidiary
In RMB
Amount
Of which： --
Of which： --
Of which： --
Other notes：
(3) Net Cash receive of disposal of the subsidiary
In RMB
Amount
Of which： --
Of which： --
Of which： --
Other notes：
（4）The structure of cash and cash equivalents
In RMB
Items Ending balance Beginning balance
1. Cash 4,612,782,772.98 9,327,034,030.07
Including: Cash on hand 72,220.66 14,168.01
Bank deposits available on
4,612,384,032.13 9,327,019,862.06
demand
Other monetary funds available
326,520.19
on demand
3. Ending balance of cash and cash 4,612,782,772.98 9,327,034,030.07
158
Bengang Steel Plates Co., Ltd. Annual Report 2015
equivalents
Other notes：
47. The assets with the ownership or use right restricted
In RMB
Items Closing book value Restricted reason
Notes payab Its used to issue notes
Monetary capital 527,695,736.99
payable and purchase foreign exchange
Notes receivable 718,925,665.16 Issue notes payable
Fixed assets 28,440,000.00 Mortgage loans
Account receivable and order 1,966,875,200.00 Loans
Total 3,241,936,602.15 --
Other notes：
48.Foreign currency monetary items
1. Foreign currency monetary items
In RMB
Ending balance in foreign Ending balance translated to
Items Exchange rate at the year-end
currency RMB
Of which：USD 114,132,557.29 6.4936 741,131,173.99
EUR 27,790,063.04 7.0952 197,176,055.26
HKD 969,716.09 0.8378 812,428.14
EUR 106,577,023.48 7.0952 756,185,297.09
JPY 278,112,000.00 0.0539 14,983,284.00
Non-current liabilities due
780,506,042.14
within1 year
Of which：USD Loans 100,000,000.00 6.4936 649,360,000.00
Euro loans 18,483,769.61 7.0952 131,146,042.14
Short term loans 7,636,473,600.00
Of which：USD Loans 1,176,000,000.00 6.4936 7,636,473,600.00
Other notes：
(2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place,
recording currency and selection basis, if there are changes into recording currency, shall also disclose the
reason.
□ Applicable √Not applicable
159
Bengang Steel Plates Co., Ltd. Annual Report 2015
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
In RMB
Income of Net profits of
Time and
Cost of Way to gain Recognition acquiree acquiree
Name of place of Proportion of
gaining the the stock Purchase date basis of during the during the
acquiree gaining the stock rights
stock rights rights purchase date purchase date purchase date
stock rights
to period-end to period-end
Other notes：
(2) Combined cost and goodwill
In RMB
Combination cost
Note to determination method, consideration and changes of fair value of combined cost:
The main formation reason for the large goodwill:
Other notes：
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Fair value on purchase date Book value on purchase date
The recognition method of the fair value of identifiable assets and liabilities：
Contingent liability of acquiree undertaken by business merger：
Other notes：
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value measured again
160
Bengang Steel Plates Co., Ltd. Annual Report 2015
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger
and gaining the control during the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of
liabilities of the acquiree at acquisition date or closing period of the merge
(6) Other notes
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
In RMB
Income from Net profits
the from the
Recognition Income Net profits
period-begin reporting
Combined Proportion of Combination basis of during the during the
Basis to the period to the
party the profits date combination period of period of
combination combination
date comparison comparison
date of the date of the
combination combination
Other notes：
（2）Combination cost
In RMB
Combination cost
Note to contingent consideration or other changes:
Notes:
(3) The book value of the assets and liabilities of the combined party at combining date
In RMB
Combination date Period-end of last period
Contingent liabilities of the combined party undertaken in combination
Notes:
161
Bengang Steel Plates Co., Ltd. Annual Report 2015
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of
the listed companies whether constituted a business and its basis, the determination of the combination costs, the
amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √ No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control
in reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of
liquidation) and relevant information:
The scope of the consolidated financial statements of the current period has been added the newly established
subsidiaries of Benxi Bengang Iron and Steel Sales Co., Ltd and Shenyang Bengang Metallurgy Technology Co.,
Ltd.
6.Other
IX. Equity in other entities
(1) Equity in subsidiaries
1. Constitution of enterprise group
Name of the Principal place Registered Nature of Shareholding ratio Acquiring
subsidiaries of business address business Direct Indirect method
Business
Xiamen Bengang
combination
Steel Sales Co., Xiamen Xiamen Sales 100.00%
under common
Ltd.
control
Business
Wuxi Bengang
combination
Steel Sales Co., Wuxi Wuxi Sales 100.00%
Ltd. under common
control
162
Bengang Steel Plates Co., Ltd. Annual Report 2015
Business
Tianjin Bengang
combination
Steel Trading Co., Tianjin Tianjin Sales 100.00%
Ltd. under common
control
Business
Nanjing Bengang
combination
Material Sales Co., Nanjing Nanjing Sales 100.00%
Ltd. under common
control
Business
Yantai Bengang
combination
Steel Sales Co., Yantai Yantai Sales 100.00%
Ltd. under common
control
Business
Harbin Bengang
combination
Steel & Iron Sales Harbin Harbin Sales 100.00%
Co., Ltd. under common
control
Business
Changchun
Bengang Steel combination
Changchun Changchun Sales 100.00%
&Iron Sales Co., under common
Ltd.
control
Guangzhou Benxi
Iron & Steel Guangzhou Guangzhou Sales 100.00% Establishment
Trading Co., Ltd
Shanghai
Bengang
Metallurgy
Shanghai Shanghai Sales 100.00% Establishment
Science and
Technology Co.,
Ltd.
Bengang Steel
Plates Liaoyang Liaoyang Liaoyang Manufacturing 100.00% Establishment
Pellet Co., Ltd.
Dalian
Benruitong
Automobile
Danlian Dalian Manufacturing 65.00% Establishment
Material
Eechnology Co.,
Ltd.
Business
Bengang Puxing
combination
Cold-rolled Sheet Benxi Benxi Manufacturing 75.00%
under common
Co., Ltd.
control
163
Bengang Steel Plates Co., Ltd. Annual Report 2015
Benxi Bengang
Steel Sale Co., Benxi Benxi Sales 100.00% Establishment
Ltd.
Shenyang
Bengang
Metallurgy Shenyang Shenyang Sales 100.00% Establishment
Technology
Co., Ltd.
Notes: other non-current liabilities shall belong to equity of SIH Divestiture Assets. Through the above Contract on Entrusted
Management of Divestiture Assets and Liabilities, the Company has actually controlled SX Companys Divestiture Assets which
become a business entity with control rights by entrusted business mode.
Basis of determine whether the Company is the agent or the principal:：
Other notes：
(2) Significant not wholly owned subsidiary
In RMB
The profits and losses Declaring dividends Balance of minority
Shareholding proportion
Name of the subsidiary arbitrate to the minority distribute to minority shareholder at closing
of minority shareholder
shareholders shareholder period
Bengang Puxiang
25.00% 57,478,394.98 475,746,272.70
Cold-rolled Sheet Co., Ltd.
Dalian Benruitong
Automobile Material 35.00% -4,782,207.05 29,246,776.75
Eechnology Co., Ltd.
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Other notes：
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Name of Closing balance Opening balance
the Non-curr Non-cur Non-curr Non-cure
Current Total Current Total Current Total Current Total
subsidiar ent ent ent nt
assets assets liabilities liabilities assets assets liabilities liabilities
y assets liability assets liability
Bengang
Puxiang
1,467,41 2,567,81 4,035,22 2,132,23 2,132,23 1,804,90 2,768,70 4,573,61 2,900,54 2,900,54
Cold-roll
1,809.82 1,403.90 3,213.72 8,122.92 8,122.92 8,327.93 7,380.04 5,707.97 4,197.11 4,197.11
ed Sheet
Co., Ltd.
Dalian 191,638, 168,790, 360,429, 276,866, 276,866, 522,882, 175,596, 698,479, 601,253, 601,253,
164
Bengang Steel Plates Co., Ltd. Annual Report 2015
Benruito 815.72 370.49 186.21 966.92 966.92 668.78 493.34 162.12 494.12 494.12
ng
Automob
ile
Material
Eechnolo
gy Co.,
Ltd.
In RMB
Reporting period Same period of last year
Name of the Total Total
Operation Operating Operation Operating
subsidiary Net profit comprehensi Net profit comprehensi
revenue cash flow revenue cash flow
ve income ve income
Bengang
Puxiang
5,239,528,44 229,913,579. 229,913,579. 1,135,756,08 7,637,854,20 313,362,749. 313,362,749. -59,710,793.0
Cold-rolled
3.20 94 94 7.02 6.21 40 40 5
Sheet Co.,
Ltd.
Dalian
Benruitong
Automobile 352,172,227. -13,663,448.7 -13,663,448.7 16,246,522.9 364,867,029. 10,650,413.1 10,650,413.1 12,972,741.5
Material 41 1 1 0 36 8 8 3
Eechnology
Co., Ltd.
Other notes：
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
Other notes：
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of
the parent company
In RMB
Other notes
165
Bengang Steel Plates Co., Ltd. Annual Report 2015
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Holding percentage(%) Accounting
treatment of the
Main operating Nature of investment of
Name Registration place
place business Directly Indirectly joint venture or
associated
enterprise
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting rights but does not
have a significant impact:
(2) Main financial information of significant joint venture
In RMB
Closing balance/ reporting period Opening balance /last period
Other notes
(3) Main financial information of significant associated enterprise
In RMB
Closing balance/ reporting period Opening balance /last period
Other notes
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Closing balance/ reporting period Opening balance /last period
Joint venture: -- --
The total of following items according to the
-- --
shareholding proportions
Associated enterprise: -- --
The total of following items according to the
-- --
shareholding proportions
Other notes
166
Bengang Steel Plates Co., Ltd. Annual Report 2015
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds
to the Company
(6) The excess loss of joint venture or associated enterprise
In RMB
The cumulative recognized The derecognized losses or the The noncumulative
Name losses in previous share of net profit in reporting unrecognized losses in reporting
accumulatively derecognized period period
Other notes
(7) The unrecognized commitment related to joint venture investment
(8) Contingent liabilities related to joint venture or associated enterprise investment
4. Significant common operation
Proportion /share portion
Name Main operating place Registration place Nature of business
Directly Indirectly
Notes to holding proportion or share portion in common operation different from voting proportion:
Naught Basis of common operation as a single entity, classify as common operation Naught
Other notes:
5. Equity of structure entity not including in the scope of consolidated financial statements
Related notes to structure entity not including in the scope of consolidated financial statements
6.Other
X. The risk related financial instruments
(1) Credit risk
Credit risk refers to a financial loss to a party due to failure to discharge an obligation by the counterparties.
The Company is exposed to credit risk arising from customers failure to discharge an obligation in sales on
credit. In order to minimize the credit risk, the management of the Company is responsible for determination
of credit limits, credit approvals and other monitoring procedures to ensure that follow-up actions are taken to
recover overdue debts.
In addition, the Company strictly approves the line of credit, and only sells on credit to important customers
for newly-developed products. In the monitoring of credit risk of customers, the Company sorts customers
into groups by their credit characteristics. Those customers which are rated as “high risk” will be put in the
restricted client list. The Company can only sell to these customers on credit with additional approval;
otherwise the Company must ask for a corresponding deposit in advance.
167
Bengang Steel Plates Co., Ltd. Annual Report 2015
(2) Market risk
Market risk of financial instruments refers to fluctuations of fair value or future cash flows due to market
price changes, including currency risk, interest rate risk, and other price risk.
1. Interest rate risk
Interest rate risk refers to fluctuations of fair value or future cash flows due to market rate changes. The
Companys exposure to currency risk is primarily arising from variable-rate bank balances and variable-rate
borrowings. Currently, the Company does not have a specific policy to manage its interest rate risk. The
management will carefully choose financing methods, and combine fixed interest rate with variable interest
rate, short-term obligations with long-term obligations. By using effective interest rate risk management
methods, the Company closely monitors interest rate risk and will consider interest-rate swaps to acquire an
expected structure of interest rates shall the need arise.
Although these measures may not ensures that the Company completely avoids the risk of paying at a risk
higher than market risk, or that the cash flow risk relevant to interest income fluctuations is completely
eliminated, in the opinion of the management, these measures could achieve a reasonable balance among
these risks.
2. Currency risk
Currency risk refers to fluctuations of fair value or future cash flows due to exchange rate changes. The
Company has been constantly working on the adjustment of the organizational framework of risk
management and optimization of debt structures to lower the currency risk.
(3) Liquidity risk
Liquidity risk refers to the risk of shortage of funds which occurs in fulfilling the obligation of settlement in a
manner of delivering cash or other financial assets. The Companys policy is to maintain sufficient cash to
meet maturing obligations. Liquidity risk is centralized controlled by the Companys finance department.
Through the monitoring of unrestricted cash and cash equivalents, bank acceptance bills due in short time and
the continues forecasting of cash flow in the next 12 months, the finance department ensures that the
Company has sufficient cash to meet obligations in all predicted reasonable circumstances.
The following table details the Companys mature date of residual contract value of underivative financial
liabilities to repay according to the contract terms. The table has been drawn up based on the undiscounted
cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The
table includes both interest and principal cash flows.
In RMB’0000
Items Closing balance
Within 1 year 1-2 years 2-5 years Over 5 years Total
Trade and other
account payable
Loans
Total
168
Bengang Steel Plates Co., Ltd. Annual Report 2015
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Items Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
II. Inconsistent fair value
-- -- -- --
measurement
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
3. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 2
4. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion
happens among consistent fair value measurement items at different levels
7. Changes in the valuation technique in the current period and the reason for change
8. Fair value of financial assets and liabilities not measured at fair value
9.Other
XII. Related party transactions
(1) Details of parent company
In RMB
Name of parent Registered Share proportion
Place of Registry Nature of Business Voting rights (%)
company capital (%)
Benxi Steel (Group)
Benxi Manufacturing 53.69 78.37% 78.37%
Co., Ltd.
169
Bengang Steel Plates Co., Ltd. Annual Report 2015
Bengang Group Co.,
Benxi Manufacturing 180.00 78.37% 78.37%
Ltd.
Notes：
The ultimate controlling party of the Company is the State-owned Assets Supervision and Administration Commission of Liaoning
Province.
2. Subsidiaries of the Company
For details of subsidiaries of the Company please refer to Note 7 “Equity in other entities”.
3. Information on the joint ventures and associated enterprises of the Company
See details to Notes.
Information on other joint venture and associated enterprise of occurring related party transactions with the Company in reporting
period, or form balance due to related party transactions in previous period:
Name Relationship
Notes
4.Information on other related parties of lthe company
Name Relationship
Bengang Group International Trading Co., Ltd. Same parent company
Bengang Group Hong Kong Co., Ltd. Both belong to Benxi Iron and Steel (Group) Co., Ltd.
Bengang Cold-rolled Stainless Steel Dandong Co., Ltd. Same parent company
Benxi Beiying Steel and Iron (Group) Co., Ltd. Both belong to Bengang Group Co., Ltd.
Benxi Beiying Steel and Iron Import and Export Co., Ltd. Both belong to Bengang Group Co., Ltd.
Bengang Electronics and Gas Co., Ltd. Same parent company
Benxi Steel (Group) Real-estate Development Co., Ltd. Same parent company
Benxi Steel (Group) Steel Process and Logistics Co., Ltd. Same parent company
Benxi Steel (Group) Engineering Inspection Co., Ltd. Same parent company
Benxi Steel (Group) Machinery Co., Ltd. Same parent company
Benxi Steel (Group) Construction Co., Ltd. Same parent company
Benxi Steel (Group) Mining Co., Ltd. Same parent company
Benxi Steel (Group) Thermal Power Development Co., Ltd. Same parent company
Benxi Steel (Group) Designing Institute Same parent company
Benxi Steel (Group) Industrial Development Co., Ltd. Same parent company
Benxi Steel (Group) Details and Automatic Tech. Co., Ltd. Same parent company
Benxi Steel (Group) Construction & Repairing Co., Ltd. Same parent company
Benxi Steel (Group) Metallurgy Residues Co., Ltd Same parent company
170
Bengang Steel Plates Co., Ltd. Annual Report 2015
Benxi Steel (Group) Medical Co., Ltd. Same parent company
Benxi Steel (Group) News Center Same parent company
Benxi Steel and Iron (Group) Zhengtai Construction Materials
Same parent company
Co., Ltd.
Benxi Steel (Group) Drilling Tools Co., Ltd. Same parent company
Benxi New Career Development Co., Ltd. Same parent company
Dalian Boluole Steel Tube Co., Ltd. Same parent company
Guangzhou Free Trade Zone Bengang Sales Co., Ltd. Both belong to Benxi Iron and Steel (Group) Co., Ltd.
Liaoning Bengang Steel & Iron Trading Co., Ltd Both belong to Benxi Iron and Steel (Group) Co., Ltd.
Liaoning Hengtai Heavy Machinery Co., Ltd. Both belong to Bengang Group Co., Ltd.
Liaoning Hengtong Metallurgical Equipment Manufacturing Co.,
Both belong to Bengang Group Co., Ltd.
Ltd.
Liaoning Metallurgy Technician College Same parent company
Liaoning Metallurgy Technician College Same parent company
Shanghai Bengang Steel & Iron Trading Co., Ltd. Both belong to Benxi Iron and Steel (Group) Co., Ltd.
Tianjin Bengang Steel Plates Process and Logistics Co., Ltd. Both belong to Benxi Iron and Steel (Group) Co., Ltd.
Suzhou Bengang Industrial Co., Ltd. Sharing company
Shanghai Bengang Steel Sale Co., Ltd. Both belong to Benxi Iron and Steel (Group) Co., Ltd.
Shanghai Bengang Iron&Steel Trading Co., Ltd. Both belong to Benxi Iron and Steel (Group) Co., Ltd.
Bengang Group Finance Co., Ltd. Same parent company
Liaoning Hengyi Financing Leasing Co., ltd. Same parent company
Other notes
5. List of related-party transactions
(1) Information on acquisition of goods and reception of labor service)
Information on acquisition of goods and reception of labor service
In RMB
The approvl trade Whether exceed trade Same period of last
Related party Content Reporting period
credit credit or not year
Benxi Steel (Group)
Repair fee 156,995,932.00 No 242,612,000.00
Co., Ltd.
Benxi Steel (Group)
Land leasing fee 57,426,000.00 No 57,426,000.00
Co., Ltd.
Bengang
Products 301,149.02 No 2,700,852.96
Cold-rolled
171
Bengang Steel Plates Co., Ltd. Annual Report 2015
Stainless Steel
Dandong Co., Ltd.
Benxi Steel (Group)
Labor cost 22,066,231.92 No 23,975,366.26
Mining Co., Ltd.
Benxi Steel (Group)
Raw material 3,529,686,845.22 No 4,960,292,952.48
Mining Co., Ltd.
Benxi Steel (Group)
Freight 3,285,528.39 No 7,078,380.11
Mining Co., Ltd.
Benxi Steel (Group)
Metallurgy Raw material 112,923,767.84 No 202,309,450.59
Residues Co., Ltd.
Benxi Steel (Group)
Steel Process and Processing fee 2,354,615.81 No 5,649,998.15
Logistics Co., Ltd.
Benxi Steel (Group)
Steel Process and Products No
Logistics Co., Ltd.
Benxi Steel (Group)
Real-estate
Raw material 68,418,889.13 No 75,908,131.46
Development Co.,
Ltd
Benxi Steel (Group)
Spare parts 143,456,620.55 No 184,943,074.58
Machinery Co., Ltd.
Benxi Steel (Group)
Repair services 17,054,485.17 No 18,200,854.49
Machinery Co., Ltd.
Benxi Steel (Group)
Construction Co., Spare parts 17,029,336.27 No 13,238,023.74
Ltd.
Benxi Steel (Group)
Construction Co., Engineerng fee 332,746,256.10 No 327,804,663.06
Ltd.
Benxi Steel (Group)
Construction Co., Repair services 89,957,365.25 No 148,737,386.73
Ltd.
Benxi Steel (Group)
Construction Co., Raw material 9,962,827.47 No 11,368,797.87
Ltd.
Benxi Steel (Group)
Construction Co., Freight 3,753,482.85 No
Ltd.
172
Bengang Steel Plates Co., Ltd. Annual Report 2015
Benxi Steel (Group)
Industrial
Spare parts 40,819,559.76 No 39,990,571.27
Development Co.,
Ltd.
Benxi Steel (Group)
Industrial
Raw material 194,581,308.15 No 310,169,440.85
Development Co.,
Ltd.
Benxi Steel (Group)
Industrial
Repair services 11,359,570.02 No 11,694,340.32
Development Co.,
Ltd.
Benxi Steel (Group)
Industrial
Freight 6,180,532.47 No 7,404,777.74
Development Co.,
Ltd.
Benxi Steel (Group)
Industrial
Engineerng fee 2,098,041.03 No 860,556.76
Development Co.,
Ltd.
Benxi Steel (Group)
Raw material and
Construction & 12,767,449.91 No 6,954,598.56
spare part
Repairing Co., Ltd.
Benxi Steel (Group)
Construction & Engineerng fee 117,176,790.75 No 103,089,546.01
Repairing Co., Ltd.
Benxi Steel (Group)
Construction & Repair fee 92,544,131.55 No 113,504,562.26
Repairing Co., Ltd.
Bengang
Electronics and Gas Raw material 99,783,576.65 No 120,658,677.32
Co., Ltd.
Bengang
Electronics and Gas Engineerng fee 5,370,735.62 No
Co., Ltd.
Repair services 16,601,553.00 No 13,924,881.00
Benxi High-tech
Drilling Tools
Spare parts 1,009,624.60 No 1,321,877.59
Manufacturing Co.,
Ltd.
173
Bengang Steel Plates Co., Ltd. Annual Report 2015
Benxi New Career
Labor protection
Development Co., 8,491,191.16 No 8,532,675.66
fee
Ltd.
Benxi New Career Raw material and
Development Co., supplementary 1,676,502.22 No 475,998.01
Ltd. material
Liaoning
Metallurgy Training fee 824,826.00 No 4,160.00
Technician College
Liaoning
Metallurgy Spare parts 16,920,934.56 No 13,251,551.18
Technician College
Liaoning
Metallurgy Raw material No
Technician College
Liaoning Bengang
Steel & Iron Trading Raw material No
Co., Ltd
Liaoning
Metallurgy Engineerng fee 6,022,457.96 No 2,624,073.74
Technician College
Liaoning
Metallurgy Repair services 2,410,382.44 No 1,865,579.10
Technician College
Bengang Group
International Agency fee 54,293,066.92 No 76,696,525.74
Trading Co., Ltd.
Bengang Group
International Port surcharges 198,820,038.51 No 191,969,393.41
Trading Co., Ltd.
Benxi Steel (Group)
Details and
Repair services 19,119,302.07 No 11,406,015.70
Automatic Tech.
Co., Ltd.
Benxi Steel (Group)
Details and
Engineerng fee 30,075,834.95 No 14,583,119.65
Automatic Tech.
Co., Ltd.
Benxi Steel (Group)
Details and Repair services 895,000.00 No 2,526,435.90
Automatic Tech.
174
Bengang Steel Plates Co., Ltd. Annual Report 2015
Co., Ltd.
Benxi Steel (Group)
Thermal Power
Heating costs 12,903,359.25 No 12,075,111.45
Development Co.,
Ltd.
Benxi Steel (Group)
Thermal Power
Raw material 91,819.00 No 101,090.00
Development Co.,
Ltd.
Benxi Steel (Group)
Project fee No
Designing Institute
Benxi Steel (Group)
Design fees 13,659,630.09 No 659,433.97
Designing Institute
Benxi Beiying Steel
& Iron (Group) Co., Raw material 4,346,775,459.27 No 6,028,843,984.85
Ltd
Benxi Beiying Steel
& Iron (Group) Co., Energy & Power 436,208,616.25 No 380,323,917.23
Ltd
Benxi Beiying Steel
& Iron (Group) Co., Freight 7,027,658.79 No 9,546,982.92
Ltd
Benxi Beiying Steel
& Iron (Group) Co., Labor cost 57,660,744.70 No 67,224,247.20
Ltd
Benxi Beiying Steel
& Iron (Group) Co., Spare parts 16,441,779.44 No 72,997,642.11
Ltd
Liaoning Hengtong
Metallurgical
Raw material and
Equipment 103,154,730.62 No 82,005,850.02
Manufacturing Co., spare part
Ltd.
Liaoning Hengtong
Metallurgical
Raw material and
Equipment 11,860,625.86 No 5,474,547.03
Manufacturing Co., spare part
Ltd.
Liaoning Hengtai
Heavy Machinery Repair services 26,706,131.29 No 15,019,391.00
Co. Ltd
Bengang Group Co., Property
845,519.59 No 845,519.59
Ltd. management fee
Total 10,540,597,817.44 14,010,873,007.62
Information of sales of goods and provision of labor service
In RMB
175
Bengang Steel Plates Co., Ltd. Annual Report 2015
Related party Content reporting period Same period of last year
Benxi Steel (Group) Electronics
Energy&Power 1,486,244.49
and Gas Co., Ltd.
Raw material &
Bengang Cold-rolled Stainless
supplementary materials & 525,654.68 12,252,752.21
Steel Dandong Co., Ltd.
spare parts
Bengang Cold-rolled Stainless
Products 1,217,061.50
Steel Dandong Co., Ltd.
Bengang Cold-rolled Stainless
Equipment
Steel Dandong Co., Ltd.
Raw material &
Benxi Beiying Steel & Iron
supplementary materials & 169,480,778.72 457,680,890.78
(Group) Co., Ltd
spare parts
Benxi Beiying Steel & Iron
Products 7,796,704.77 381,370,255.97
(Group) Co., Ltd
Benxi Beiying Steel & Iron
Energy&Power 67,872,442.47 381,370,255.97
(Group) Co., Ltd
Benxi Beiying Steel & Iron
Agency fees
(Group) Co., Ltd
Benxi Steel (Group) Real-estate
Energy&Power 1,157,857.73 2,289,678.98
Development Co., Ltd.
Raw material &
Benxi Steel (Group) Real-estate
supplementary materials & 964,418.84
Development Co., Ltd.
spare parts
Benxi Steel (Group) Steel
Energy&Power 620,542.93 745,176.05
Process and Logistics Co., Ltd.
Benxi Steel (Group) Steel
Products 479,283,307.13 620,145,123.90
Process and Logistics Co., Ltd.
Benxi Steel (Group) Machinery
Products 5,824,073.17 5,878,316.87
Co., Ltd.
Benxi Steel (Group) Machinery
Energy&Power 18,903,308.87 18,249,215.95
Co., Ltd.
Raw material &
Benxi Steel (Group) Machinery
supplementary materials & 5,553,512.07 61,273,746.94
Co., Ltd.
spare parts
Benxi Steel (Group) Machinery
Agency fees
Co., Ltd.
Benxi Steel (Group)
Energy&Power 4,570,010.42 3,400,641.32
Construction Co., Ltd.
176
Bengang Steel Plates Co., Ltd. Annual Report 2015
Raw material &
Benxi Steel (Group)
supplementary materials & 124,092,277.20 167,615,132.67
Construction Co., Ltd.
spare parts
Benxi Steel (Group)
Agency fees
Construction Co., Ltd.
Benxi Steel (Group)Mining
Energy&Power 719,503,408.46 752,161,271.76
Co.,Ltd.
Raw material &
Benxi Steel (Group)Mining
supplementary materials & 123,073,209.81 111,696,319.30
Co.,Ltd.
spare parts
Benxi Steel (Group)Mining
Freight income 8,509,546.19 10,296,907.09
Co.,Ltd.
Benxi Steel (Group)Mining
Agency fees
Co.,Ltd.
Benxi Steel (Group)Mining
Products 6,626,252.87 5,174,274.31
Co.,Ltd.
Benxi Steel (Group) Thermal
Energy&Power 31,529,338.29 30,071,359.53
Power Development Co., Ltd.
Raw material &
Benxi Steel (Group) Thermal
supplementary materials & 26,467,318.81 39,516,557.61
Power Development Co., Ltd.
spare parts
Benxi Steel (Group) Thermal
Freight income 850,386.17
Power Development Co., Ltd.
Benxi Steel (Group) Thermal
Agency fees
Power Development Co., Ltd.
Benxi Steel (Group) Industrial
Energy&Power 9,284,767.55 8,490,290.46
Development Co., Ltd.
Benxi Steel (Group) Industrial
Products 531,180.84 8,052,351.24
Development Co., Ltd.
Raw material &
Benxi Steel (Group) Industrial
supplementary materials & 96,014,167.53 127,354,046.44
Development Co., Ltd.
spare parts
Benxi Steel (Group) Details and
Energy&Power 201,887.98 134,283.47
Automatic Tech. Ltd.
Benxi Steel (Group)
Construction & Repairing Co., Energy&Power 1,021,735.33 1,212,897.70
Ltd.
Benxi Steel (Group) Raw material &
4,203,216.71 4,183,020.79
Construction & Repairing Co., supplementary materials &
177
Bengang Steel Plates Co., Ltd. Annual Report 2015
Ltd. spare parts
Benxi Steel (Group) Metallurgy
Energy&Power 4,208,751.57 3,680,220.58
Residues Co., Ltd., Ltd.
Raw material &
Benxi Steel (Group) Metallurgy
supplementary materials & 23,774,531.92 70,034,697.50
Residues Co., Ltd., Ltd.
spare parts
Benxi Steel (Group) Metallurgy
Freight income 181,550.34
Residues Co., Ltd., Ltd.
Benxi Steel (Group) Metallurgy
Agency fees
Residues Co., Ltd., Ltd.
Benxi Steel (Group) Metallurgy
Products 6,789,036.68 5,225,685.17
Residues Co., Ltd., Ltd.
Benxi Steel & Iron (Group) Co.,
Energy&Power 55,504,627.45 80,875,223.56
Ltd
Raw material &
Benxi Steel & Iron (Group) Co.,
supplementary materials & 8,961,629.82 12,158,411.92
Ltd
spare parts
Benxi Steel & Iron (Group) Co.,
Agency fees
Ltd
Benxi New Career
Energy&Power 411,176.39 415,956.94
Development Co., Ltd.
Raw material &
Benxi New Career
supplementary materials & 569,949.90
Development Co., Ltd.
spare parts
Dalian Boluole Steel Tube Co.,
Products 5,195,152.00 8,560,250.35
Ltd.
Liaoning Bengang Steel & Iron
Products 587,660,157.07 748,646,488.28
Trading Co., Ltd
Raw material &
Liaoning Metallurgy Technician
supplementary materials & 350.00
College
spare parts
Benxi Steel (Group) Steel
Products 56,231,682.62
Process and Logistics Co., Ltd.
Tianjing Bengang Longxing
Products
Steel Process Co., Ltd.
Raw material &
Benxi Steel (Group) Medical
supplementary materials & 605,123.03
Co., Ltd.
spare parts
Benxi Steel (Group) Medical Energy&Power 133,971.12 185,122.94
178
Bengang Steel Plates Co., Ltd. Annual Report 2015
Co., Ltd.
Benxi Steel and Iron (Group) Raw material &
Zhengtai Construction Materials supplementary materials & 12,306.67
Co., Ltd. spare parts
Benxi Steel and Iron (Group)
Zhengtai Construction Materials Energy&Power 2,282.28 45,906.57
Co., Ltd.
Liaoning Hengtong
Metallurgical Equipment Energy&Power 15,181,630.22 14,907,614.46
Manufacturing Co., Ltd
Liaoning Hengtong Raw material &
Metallurgical Equipment supplementary materials & 14,393,413.36 36,272,604.41
Manufacturing Co., Ltd spare parts
Liaoning Hengtong
Metallurgical Equipment Products 3,591,259.99 36,272,604.41
Manufacturing Co., Ltd
Liaoning Hengtong
Metallurgical Equipment Agency fees
Manufacturing Co., Ltd
Suzhou Bengang Industrial Co.,
Products 162,369,246.20 317,411,901.89
Ltd.
Bengang Group Finance Co.,
Energy&Power 14,792.38
Ltd.
Benxi Steel (Group) Co., Ltd. Energy&Power 119,041.45
Total 2,802,174,261.93 4,606,209,468.35
Notes
(2) Related trusteeship/contract
Lists of related trusteeship/contract:
In RMB
Name of the Income
Name of the
entrustee/contract Type Initial date Due date Pricing basis recognized in the
entruster/contract
or reporting period
Notes:
Lists of entrust/contractee
In RMB
Name of the Name of the Change
Type Initial date Due date Pricing basis
entruster/contract enrtrustee/contrac recognized in the
179
Bengang Steel Plates Co., Ltd. Annual Report 2015
ee tor reporting period
Notes s
(3) Information of related lease
The company was lessor：
In RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of leased assets
this year last year
Benxi Steel (Group) Steel
Warehouse and other 475,500.00 500,000.00
Process and Logistics Co., Ltd.
The company was lessee：
In RMB
Lessor Lease capital category Lease charges of 2015 Lease charges of 2014
Benxi Iron & Steel (Group) Co.,
2300 Hot rolling product line 243,576,194.11 243,853,012.45
Ltd
Benxi Iron & Steel (Group) Co.,
Land use right 57,426,000.00 57,426,000.00
Ltd
Benxi Beiying Steel & Iron
1780 Hot rolling product line 137,619,792.50 131,897,500.00
(Group) Co., Ltd.
Notes:
(1) The Company leases 2300 hot rolling product line from the Group. Lease period lasts from 1 January 2012 to 31 December
2014. Lease charges are negotiated between the lessor and the lessee based on the original cost, depreciation, and national
taxation of the product line, with consideration of conditions of production and equipment performance.
(2) The Company leases land use right from the Group. Lease period lasts from 15 April 2009. The leasing fee
is determined by the area of the land which is 7,669,068.17 square meters. Average price is RMB 0.624 per
Square meter per month; hence annual rent is RMB 57,426,000.00.
(3) The Company leases 1780 hot rolling product line from Benxi Beiying Steel & Iron (Group) Co., Ltd. The lease term lasts
from1 January 2014 to 31 December 2016. Lease charges are negotiated between the lessor and the lessee based on the original
cost, depreciation, and national taxation of the product line, with consideration of conditions of production and equipment
performance. The annual rent shall not exceed RMB 150,000,000.00.
(4) Related-party guarantee
The Company was guarantor:
In RMB
Execution accomplished
Secured party Guarantee amount Start date End date
or not
The company was secured party
In RMB
Execution accomplished
Guarantor Guarantee amount Start date End date
or not
180
Bengang Steel Plates Co., Ltd. Annual Report 2015
Bengang Group Co., Ltd, 45,000,000.00 July 30,2015 July 1,2016 No
Bengang Group Co., Ltd, 250,000,000.00 January 9,2015 January 9,2016 No
Bengang Group Co., Ltd, 200,000,000.00 January 23,2015 January 23,2016 No
Bengang Group Co., Ltd, 140,000,000.00 May 14,2015 May 14,2016 No
Bengang Group Co., Ltd, 200,000,000.00 May 14,2015 May 14,2016 No
Bengang Group Co., Ltd, 160,000,000.00 May 28,2015 May 28,2016 No
Bengang Group Co., Ltd, 200,000,000.00 May 28,2015 May 28,2016 No
Bengang Group Co., Ltd, 300,000,000.00 July 17,2015 July 17,2016 No
Bengang Group Co., Ltd, 250,000,000.00 October 30,2015 October 30,2016 No
Bengang Group Co., Ltd, 250,000,000.00 October 30,2015 October 30,2016 No
Bengang Group Co., Ltd, 230,000,000.00 November 20,2015 November 20,2016 No
Bengang Group Co., Ltd, 250,000,000.00 November 20,2015 November 20,2016 No
Bengang Group Co., Ltd, 240,000,000.00 November 20,2015 November 20,2016 No
Bengang Group Co., Ltd, 220,000,000.00 November 20,2015 November 20,2016 No
Bengang Group Co., Ltd, 200,000,000.00 November 20,2015 November 20,2016 No
Bengang Group Co., Ltd, 180,000,000.00 November 20,2015 November 20,2016 No
Bengang Group Co., Ltd, 170,000,000.00 November 20,2015 November 20,2016 No
Bengang Group Co., Ltd,
Benxi Iron and Steel 150,000,000.00 November 11, 2015 November 10,2016 No
(Group) Co., Ltd.
Bengang Group Co., Ltd,
Benxi Iron and Steel 100,000,000.00 November 11, 2015 November 8,2016 No
(Group) Co., Ltd.
Bengang Group Co., Ltd,
Benxi Iron and Steel 200,000,000.00 November 19,2015 November 16,2016 No
(Group) Co., Ltd.
Bengang Group Co., Ltd,
Benxi Iron and Steel 200,000,000.00 November 19,2015 November 18,2016 No
(Group) Co., Ltd.
Bengang Group Co., Ltd,
Benxi Iron and Steel 80,000,000.00 December 8,2015 December 6,2016 No
(Group) Co., Ltd.
Bengang Group Co., Ltd,
Benxi Iron and Steel 200,000,000.00 December 8,2015 December 7,2016 No
(Group) Co., Ltd.
Bengang Group Co., Ltd,
200,000,000.00 December 31,2015 December 8,2016 No
Benxi Iron and Steel
181
Bengang Steel Plates Co., Ltd. Annual Report 2015
(Group) Co., Ltd.
Bengang Group Co., Ltd, 130,000,000.00 June 30,2015 June 28,2016 No
Bengang Group Co., Ltd, 130,000,000.00 June 30,2015 June 29,2016 No
Bengang Group Co., Ltd, 649,360,000.00 August 21,2015 August 15,2016 No
Bengang Group Co., Ltd, 519,488,000.00 May 29,2015 May 18,2016 No
Bengang Group Co., Ltd, 324,680,000.00 July 28,2015 June 15,2016 No
Bengang Group Co., Ltd, 324,680,000.00 July 28,2015 July 15,2016 No
Bengang Group Co., Ltd, 649,360,000.00 November 30,2015 November 29,2016 No
Bengang Group Co., Ltd,
Benxi Iron and Steel 207,795,200.00 September 17,2015 March 15,2016 No
(Group) Co., Ltd.
Bengang Group Co., Ltd,
Benxi Iron and Steel 162,340,000.00 September 24,2015 March 22, 2016 No
(Group) Co., Ltd.
Benxi Iron and Steel
584,424,000.00 May 14,2015 May 13,2016 No
(Group) Co., Ltd.
Benxi Iron and Steel
974,040,000.00 December 8,2015 December 7,2016 No
(Group) Co., Ltd.
Benxi Iron and Steel
642,866,400.00 December 8,2015 December 7,2016 No
(Group) Co., Ltd.
Benxi Iron and Steel
83,000,000.00 July 30,2015 July 2,2016 No
(Group) Co., Ltd.
Bengang Group Co., Ltd,
Benxi Iron and Steel 100,000,000.00 February 10,2015 January 27,2016 No
(Group) Co., Ltd.
Bengang Group Co., Ltd,
Benxi Iron and Steel 200,000,000.00 June 30,2015 June 29,2016 No
(Group) Co., Ltd.
Bengang Group Co., Ltd,
Benxi Iron and Steel 200,000,000.00 July 31,2015 June 30,2016 No
(Group) Co., Ltd.
Bengang Group Co., Ltd,
Benxi Iron and Steel 100,000,000.00 October 21,2015 October 20,2016 No
(Group) Co., Ltd.
Bengang Group Co., Ltd 220,000,000.00 October 30,2015 October 30,2016 No
Bengang Group Co., Ltd 180,000,000.00 November 11,2015 November 11,2016 No
Bengang Group Co., Ltd 160,000,000.00 December 28,2015 December 28,2016 No
Benxi Iron and Steel 14,983,284.00 October 10,1999 September 10,2027 No
182
Bengang Steel Plates Co., Ltd. Annual Report 2015
(Group) Co., Ltd.
Benxi Iron and Steel
649,360,000.00 August 20,2014 May 2,2016 No
(Group) Co., Ltd.
Bengang Group Co., Ltd. 15,000,000.00 December 29,2014 March 21,2017 No
Bengang Group Co., Ltd. 87,000,000.00 March 26,2015 March 21, 2019 No
Bengang Group Co., Ltd. 100,000,000.00 June 25,2015 September 21,2021 No
Bengang Group Co., Ltd. 24,000,000.00 December 9,2015 March 21,2022 No
Bengang Group Co., Ltd. 2,363,834.49 June 25,2015 September 30,2025 No
Bengang Group Co., Ltd. 80,759,907.82 August 20,2015 September 30,2025 No
Bengang Group Co., Ltd. 16,948,659.00 August 20,2015 September 30,2019 No
Bengang Group Co., Ltd. 43,724.03 June 25,2015 April 30,2026 No
Bengang Group Co., Ltd. 5,288,302.03 June 25,2015 April 30,2026 No
Bengang Group Co., Ltd. 28,871.15 December 28,2015 April 30,2026 No
Bengang Group Co., Ltd. 64,328,730.70 December 28,2015 April 30,2026 No
Bengang Group Co., Ltd. 36,858,219.46 June 25,2015 April 30,2020 No
Bengang Group Co., Ltd. 13,181,490.94 December 28,2015 April 30,2020 No
Bengang Group Co., Ltd. 5,017,002.51 June 25,2015 June 30,2025 No
Bengang Group Co., Ltd. 143,462,446.56 June 25,2015 June 30,2025 No
Bengang Group Co., Ltd. 4,635,745.98 December 27,2015 June 30,2025 No
Bengang Group Co., Ltd. 47,711,087.05 June 25,2015 June 30,2019 No
Bengang Group Co., Ltd. 39,025,541.32 December 28,2015 June 30,2019 No
Bengang Group Co., Ltd. 5,101,985.76 June 25,2015 October 31,2025 No
Bengang Group Co., Ltd. 102,545,570.06 June 25,2015 October 31,2025 No
Bengang Group Co., Ltd. 46,421,327.98 December 28,2015 October 31,2025 No
Bengang Group Co., Ltd. 65,605,445.03 June 25,2015 October 31,2019 No
Bengang Group Co., Ltd. 1,258,865.86 December 28,2015 October 31,2019 No
Bengang Group Co., Ltd. 4,323,079.89 June 25,2015 August 31,2025 No
Bengang Group Co., Ltd. 123,389,325.28 June 25,2015 August 31,2025 No
Bengang Group Co., Ltd. 2,565,624.32 December 28,2015 August 31,2025 No
Bengang Group Co., Ltd. 51,455,798.09 June 25,2015 August 31,2019 No
Bengang Group Co., Ltd. 6,787,938.82 December 28,2015 August 31,2019 No
Bengang Group Co., Ltd. 18,222,815.02 December 28,2015 July 30,2019 No
Notes
183
Bengang Steel Plates Co., Ltd. Annual Report 2015
(5) Inter-bank lending of capital of related parties
In RMB
Amount borrowed and
Related party Initial date Due date Notes
loaned
Borrowed
Benxi Steel (Group)
18,263,032.96 April 28,2015 April 27,2016
Co.,Ltd.
Benxi Steel (Group)
11,369,384.16 June 4,2015 June 3,2016
Co.,Ltd.
Benxi Steel (Group)
32,699,579.48 October 12,2015 October 11, 2016
Co.,Ltd.
Benxi Steel (Group)
22,120,000.00 November 14,2015 November 13,2016
Co.,Ltd.
Bengang Group Finance
14,220,000.00 December 25,2015 December 24,2016
Co., Ltd.
Total 98,671,996.60
Loaned
(6) Related party asset transfer and debt restructuring
In RMB
Related party Content Reporting period Same period of last year
(7) Rewards for the key management personnel
In RMB
Items Reporting period Same period of last year
Rewards for the key management
2,228,000.00 2,506,100.00
personnel
（8）Other related party transactions
Our situation of loan from, interest payment and deposit in Finance Co., Ltd. of Benxi Iron and Steel Group
In RMB0000
Items Beginning Increase Decrease End balance Notes
balance
Deposit 109,766.10 1.
Loan 1,422.00 1,422.00 2.
1. The interest income of our deposit in the Finance Co., Ltd. of Benxi Iron and Steel Group(hereinafter referred to as the Finance
184
Bengang Steel Plates Co., Ltd. Annual Report 2015
Co., Ltd.) in 2015 was 741,700 yuan.
2. Our subsidiary corporation, the Dalian Benruitong Automotive Materials Co., Ltd. (hereinafter referred to as the Dalian
Benruitong) got 100 million yuan as credit granting from Finance Co., Ltd. by pledging its machines worthy 110 million yuan which
was also the value of highest principle balance of guaranteed creditors right. The Dalian Benruitong borrowed 14.22 million yuan
from the Finance Co., Ltd. within the credit. In 2015, the loan interest paid was 12,700 yuan. By the end of 2015, there was still
12,700 yuan as interest needed to be paid to the Finance Co., Ltd
（2）Our situation of interest payment to and loan from Benxi Iron and Steel (Group) Co., Ltd.
In RMB0000
Items Beginning balance Increase Decrease End balance
Loan 9,259.17 9,795.20 10,609.17 8,445.20
The details of borrowing balance by the end of 2015 are as follows:
In RMB
Related-party Borrowing Loan amount Starting date Due date
Benxi Steel (Group) Entrust loans through 18,263,032.96 2015/4/28 2016/4/27
Co.,Ltd. ChinaGuangfa Bank.Benxi
Branch
Benxi Steel (Group) Entrust loans through 11,369,384.16 2015/6/4 2016/6/3
Co.,Ltd. ChinaGuangfa Bank.Benxi
Branch
Benxi Steel (Group) Entrust loans through Bengang 32,699,579.48 2015/10/12 2016/10/11
Co.,Ltd. Group Finance Co., Ltd.
Benxi Steel (Group) Entrust loans through Bengang 22,120,000.00 2015/11/13 2016/11/12
Co.,Ltd. Group Finance Co., Ltd.
Total 84,451,996.60
In the 2015, the loan interest paid is 5.7856 million. By the end of 2015, there was still 832,300 yuan as interest needed to be paid to
Benxi Iron and Steel (Group) Co., Ltd.
6. Receivables and payables of the related parties
（1）Receivables of the Company
In RMB
Ending balance Beginning balance
Items Related party
Book balance Bad debts provision Book balance Bad debts provision
Benxi Beiying Steel
Notes receivable & Iron (Group) Co., 50,380,000.00
Ltd
Benxi Steel (Group)
Notes receivable 2,120,000.00
Machinery Co., Ltd.
Benxi Steel (Group)
Notes receivable 41,778.50
Construction Co.,
185
Bengang Steel Plates Co., Ltd. Annual Report 2015
Ltd.
Benxi Steel
Notes receivable (Group)Mining Co., 350,000.00
Ltd.
Benxi Steel (Group)
Industrial
Notes receivable 300,000.00
Development Co.,
Ltd.
Benxi Steel
Notes receivable 200,000.00
(Group)Co., Ltd.
Liaoning Hengtai
Notes receivable Heavy Machinery 500,000.00
Co., Ltd.
Subtotal： 53,891,778.50
Benxi Beiying Steel
Accounts receivable & Iron (Group) Co., 107,133,739.89
Ltd
Bengang Electronics
Accounts receivable 2,585,049.23 191,538.38 2,832,523.83 137,573.58
and Gas Co., Ltd.
Benxi Steel (Group)
Accounts receivable 54,698,244.18 1,553,819.73 24,275,958.45 406,446.86
Machinery Co., Ltd.
Benxi Steel (Group)
Accounts receivable Construction Co., 14,262,384.92 5,167,326.30 34,403,576.39 4,618,071.06
Ltd.
Benxi Steel (Group)
Industrial
Accounts receivable 46,221,815.16 493,841.63 32,701,472.77 26,327.90
Development Co.,
Ltd.
Benxi New Career
Accounts receivable Development Co., 5,677,734.02 3,879,011.35 5,307,512.50 2,624,507.53
Ltd.
Accounts receivable
Benxi Steel (Group)
Accounts receivable
Medical Co., Ltd.
Benxi Steel (Group)
Thermal Power
Accounts receivable 7,861,215.02 1,899,538.46
Development Co.,
Ltd.
Benxi Steel (Group)
Accounts receivable Steel Process and 499,988.31 499,126.96
Logistics Co., Ltd.
Bengang Cold-rolled
Accounts receivable Stainless Steel 205,478.22 1,472,716.21
Dandong Co., Ltd.
186
Bengang Steel Plates Co., Ltd. Annual Report 2015
Liaoning Hengtong
Metallurgical
Accounts receivable Equipment 7,756,906.34 23,474,655.50
Manufacturing Co.,
Ltd.
Bengang Group
Accounts receivable International Trading
Co., Ltd.
Subtotal： 246,902,555.29 11,285,537.40 126,867,081.07 7,812,926.93
Benxi Beiying Steel
Prepayments & Iron (Group) Co., 183,337,641.74 439,245,300.00
Ltd.
Benxi Steel (Group)
Prepayments Construction &
Repairing Co., Ltd.
Liaoning Hengtai
Prepayments Heavy Machinery 62,303,551.36
Co., Ltd.
Benxi Steel (Group)
Prepayments 8,865,659.53 25,526,881.70
Machinery Co., Ltd.
Bengang Group
Prepayments International Trading 108,915,901.27
Co., Ltd.
Bengang Cold-rolled
Prepayments Stainless Steel 161,293.67
Dandong Co., Ltd.
Benxi Steel and Iron
(Group) Zhengtai
Prepayments
Building Materials
Co., Ltd.
Subtotal： 192,203,301.27 636,152,928.00
Benxi Steel (Group)
Real-estate
Other receivables 2,102,965.57 24,708.37 7,632,946.72 191,498.33
Development Co.,
Ltd.
Benxi Steel
(Group)Engineerin
Other receivables g Construction
Supervision Co.,
Ltd.
Benxi Steel (Group)
Other receivables Construction &
Repairing Co., Ltd.
Liaoning Metallurgy
Other receivables 156,265.86 72,847.64 156,265.86 15,612.26
Technician College
Other receivables Bengang Cold-rolled
187
Bengang Steel Plates Co., Ltd. Annual Report 2015
Stainless Steel
Dandong Co., Ltd.
Benxi Steel (Group)
Other receivables 1,089,395.92 863,481.15 881,046.71 873,336.57
Construction Co., Ltd.
Bengang Group
Other receivables International Trading 14,007,043.70 5,206,671.93 6,717.52
Co., Ltd.
Benxi Steel (Group)
Other receivables 148,094.33 11.02 239,275.00
Machinery Co., Ltd.
Benxi Steel (Group)
Industrial
Other receivables 1,285,203.78 286,932.09 1,110,481.08 56,594.36
Development Co.,
Ltd.
Benxi Steel and Iron
(Group) Zhengtai
Other receivables 199,757.10 29,239.19 200,111.37 6,606.76
Building Materials
Co., Ltd.
Benxi Steel (Group)
Other receivables 919,870.98 464,382.35 924,587.78 528,954.42
Medical Co., Ltd.
Subtotal 19,908,597.24 1,741,601.81 16,351,386.45 1,679,320.21
2. Payables of the Company
In RMB
Name Related party End balance Beginning balance
Benxi Beiying Steel & Iron
Accounts payable 0.00 145,203,134.23
(Group) Co., Ltd.
Bengang Electronics and Gas
Accounts payable 8,233,491.05 11,639,049.30
Co., Ltd.
Benxi Steel (Group) Real-estate
Accounts payable 1,464,449.10 2,017,985.89
Development Co., Ltd
Bengang Group International
Accounts payable 719,162,306.66 4,169,986,544.24
Trading Co., Ltd.
Benxi Steel (Group) Machinery
Accounts payable 90,101,633.02 7,050,135.96
Co., Ltd.
Benxi Steel (Group)
Accounts payable 155,223,262.33 150,369,442.01
Construction Co., Ltd.
Benxi Steel (Group) Mining
Accounts payable 675,232,923.26 1,412,235,381.68
Co., Ltd.
Benxi Steel (Group) Industrial
Accounts payable 96,527,699.13 41,805,616.64
Development Co., Ltd.
Benxi New Career
Accounts payable 12,543,185.57 19,708,255.84
Development Co., Ltd.
Accounts payable Benxi Steel (Group) 103,863,602.27 84,945,497.19
188
Bengang Steel Plates Co., Ltd. Annual Report 2015
Construction & Repairing Co.,
Ltd.
Benxi Steel (Group) Designing
Accounts payable 14,484,121.51 6,820,799.97
Institute
Benxi Steel (Group) Metallurgy
Accounts payable 28,716,474.82 24,273,907.10
Residues Co., Ltd.
Benxi Steel (Group) Medical
Accounts payable 20,440.35 20,440.35
Co., Ltd.
Benxi Steel (Group)
Accounts payable Information and Automatic 60,551,446.09 49,194,667.86
Tech. Ltd.
Benxi High-tech Drilling Tools
Accounts payable 954,411.03 257,832.31
Manufacturing Co., Ltd.
Liaoning Metallurgy Technician
Accounts payable 12,864,720.30 6,378,792.36
College
Liaoning Bengang Steel & Iron
Accounts payable 53,000,000.00 30,000,000.00
Trading Co., Ltd
Benxi Steel (Group) Thermal
Accounts payable 274,295.62 148,068.39
Power Development Co., Ltd.
Benxi Steel and Iron (Group)
Accounts payable Zhengtai Building Materials Co., 396,000.00 380,918.20
Ltd.
Liaoning Hengtong
Accounts payable Metallurgical Equipment 1,122,557.73
Manufacturing Co., Ltd.
Liaoning Metallurgy Technician
Accounts payable 3,948,513.34 2,004,256.02
College.
Bengang Cold-rolled Stainless
Accounts payable 197,900.00 863,535.50
Steel Dandong Co., Ltd.
Liaoning Hengtai Heavy
Accounts payable 28,380,631.99 7,153,224.06
Machinery Co., Ltd.
Subtotal 2,067,264,065.17 6,172,457,485.10
Benxi Steel
Notes payable 152,482.03 562,465.47
(Group)Construction Co., Ltd.
Benxi Steel (Group) Industrial
Notes payable 20,058,008.27 1,813,417.63
Development Co., Ltd.
Benxi Steel (Group) Machinery
Notes payable 4,743,944.99
Co., Ltd.
Benxi Steel (Group) Real-estate
Notes payable
Development Co., Ltd.
Bengang Electronics and Gas
Notes payable 401,369.25
Co., Ltd.
Benxi Steel (Group)
Notes payable 1,381,574.71
Construction & Repairing Co.,
189
Bengang Steel Plates Co., Ltd. Annual Report 2015
Ltd.
Liaoning Metallurgy Technician
Notes payable 1,517,733.78 51,601.41
College.
Benxi Steel (Group) Mining Co.,
Notes payable 186,844,809.83 46,465,334.09
Ltd.
Benxi Steel (Group)
Notes payable Information and Automatic 323,783.90 477,255.62
Tech. Ltd.
Benxi Beiying Steel & Iron
Notes payable 167,288,198.59
(Group) Co., Ltd
Liaoning Hengtai Heavy
Notes payable 777,369.98
Machinery Co. Ltd
Liaoning metallurgical
Notes payable 221,269.29
Technician College
Liaoning Hengtai Heavy
Notes payable 365,849.75
Machinery Co., Ltd.
Subtotal 383,675,025.12 49,771,443.47
Bengang Electronics and Gas Co.,
Other payables
Ltd.
Benxi Steel (Group) Real-estate
Other payables 2,311,747.28 4,887,294.88
Development Co., Ltd
Bengang Group International
Other payables 10,165,172.85 3,067,964.46
Trading Co., Ltd.
Benxi Steel (Group) Machinery
Other payables 70,796.80 10,082.30
Co., Ltd.
Benxi Steel (Group)
Other payables 4,824,388.79 4,292,774.73
Construction Co., Ltd.
Benxi Steel (Group) Industrial
Other payables 1,419,241.27 950,411.36
Development Co., Ltd.
Benxi New Career
Other payables 816,990.96 846,071.42
Development Co., Ltd.
Benxi Steel (Group)
Other payables Construction & Repairing Co.,
Ltd.
Benxi steel (Group) design
Other payables
Research Institute
Benxi Steel (Group) Metallurgy
Other payables 1,000,000.00
Residues Co., Ltd.
Benxi Steel (Group) Medical
Other payables 12,056.00 174,219.95
Co., Ltd.
Benxi Steel (Group)
Other payables 105,000.00 105,000.00
Information and Automatic
190
Bengang Steel Plates Co., Ltd. Annual Report 2015
Tech Co., Ltd.
Benxi Steel (Group) Steel
Other payables 5,972,325.96 3,277,425.46
Process and Logistics Co., Ltd.
Other payables Benxi Steel (Group) Co., Ltd. 179,539,999.52 158,643,367.61
Benxi Steel (Group) News
Other payables 1,722,726.76
Center
Liaoning metallurgical
Other payables
Technician College
Benxi Steel (Group) Thermal
Other payables 2,373,050.76 1,779,806.08
Power Development Co., Ltd.
Liaoning Hengtai Heavy
Other payables
Machinery Co. Ltd
Benxi Beiying Steel & Iron
Other payables
(Group) Co., Ltd
Guangzhou Free Trade Zone
Other payables 2,674,436.85 2,674,436.85
Bengang Sales Co., Ltd
Shanghai Bengang steel Sale
Other payables 863,797.83
Co., Ltd.
Bengang Cold-rolled Stainless
Other payables 96,596.40
Steel Dandong Co., Ltd.
Subtotal： 211,285,207.04 183,391,976.09
Benxi Steel (Group) Machinery
Advance from costomer 268,726.35 392,380.53
Co., Ltd.
Tianjin Bengang Longxing
Advance from costomer
Steel Process Co., Ltd.
Benxi Steel (Group) Industrial
Advance from costomer 1,534,119.77 1,800,534.80
Development Co., Ltd.
Benxi Steel (Group) Metallurgy
Advance from costomer 1,669.48 548,762.37
Residues Co., Ltd.
Benxi Steel (Group) Steel
Advance from costomer 62,631,155.58 96,764,509.78
Process and Logistics Co., Ltd.
Dalian Boluole Steel Tube Co.,
Advance from costomer 1,838,120.74
Ltd.
Guangzhou Free Trade Zone,
Advance from costomer
Bengang Steel Sales Co. Ltd.
Liaoning Bengang Steel & Iron
Advance from costomer 31,798,368.79 22,728,533.19
Trading Co., Ltd
Advance from costomer Liaoning Hengtong 94,299.22 323,523.72
191
Bengang Steel Plates Co., Ltd. Annual Report 2015
Metallurgical Equipment
Manufacturing Co., Ltd.
Shanghai Bengang steel
Advance from costomer
TradeCo., Ltd.
Tianjin Bengang Steel Plates
Advance from costomer
Process and Logistics Co., Ltd
Liaoning Hengtai Heavy
Advance from costomer 184,695.93 184,695.93
Machinery Co., Ltd.
Benxi Steel (Group) Thermal
Advance from costomer 3,100,209.92
Power Development Co., Ltd.
Bengang Group International
Advance from costomer 17,824,227.63 46,086,929.33
Trading Co., Ltd.
Significant commitments at
Advance from costomer 10,985,007.76 37,105,578.38
balance sheet date
Subtotal： 125,322,270.51 210,873,778.69
XIII. Commitments and Contingencies
(1) Significant commitments
Significant commitments at balance sheet date
Investment contracts not yet performed or in progress and their relevant financial expenditures
(1) For the land leased from the Company to the Group, price is RMB 0.624 per Square meter per month, and the area of the
land is 7,669,068.17 square meters; hence annual rent is RMB 57.426 million.
(2) For the 2300 hot rolling product line leased from the Group to the Company, lease period lasts from 1 January 2015 to 31
December 2015. Lease charges are negotiated between the lessor and the lessee based on the original cost, depreciation, and
national taxation of the product line, with consideration of conditions of production and equipment performance.
(3) For the 1780 hot rolling product line leased from Benxi Beiying Steel & Iron (Group) Co., Ltd. to the Company, the lease
period lasts from 1 January 2014 to 31 December 2016. Lease charges are negotiated between the lessor and the lessee based on
the original cost, depreciation, and national taxation of the product line, with consideration of conditions of production and
equipment performance. The annual rent shall not exceed RMB 150,000,000.00. Details of the above lease are shown in Note
IX, (IV) 2
2. Contingency
(1) Significant contingency at balance sheet date
None
192
Bengang Steel Plates Co., Ltd. Annual Report 2015
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
3.Other
XIV. Events after balance sheet date
1. Significant events had not adjusted
In RMB
Influence number to the
Reason of unable to estimate
Items Content financial position and operating
influence number
results
2. Profit distribution
In RMB
3. Sales return
None
4. Notes of other significant events
None
XV. Other significant events
1. The accounting errors correction in previous period
（1）Retrospective restatement
In RMB
Name of the influenced report
Content Processing program Cumulative impact
items during comparison period
（2）Prospective application
Content Prpcessing program Reason of adopting prospective application
193
Bengang Steel Plates Co., Ltd. Annual Report 2015
2. Debt restructuting
3. Replacement of assets
（1）Non-monetary assets exchange
（2）Other assets replacement
4. Pension plan
5. Discontinuing operation
In RMB
Termination of
the business
Income tax profits
Items Revenue Expense Total profit Net profit
ecpense attributable to the
parent company
owner
Notes
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
Our major production is steel and other productions play very small role in our sales. The main production base is
in Liaoning province. For this reason, reports of other branches are not available.
(2) The financial information of reportable segment
In RMB
Items Offset in segment Total
(3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportable
segment, shall disclose the reason.
（4）Other notes
7. Other important transactions and events have an impact on investors decision-making
8.Other
（2）Finance Lease
194
Bengang Steel Plates Co., Ltd. Annual Report 2015
In order to optimize the debt structure and broaden the financing channels, our company has signed the Cooperation
Framework Agreement of Finance Lease with the Liaoning Hengyi Lease Finance Co., Ltd. (hereinafter referred to as Hengyi Lease)
on April 20, 2015. The amount of fund should be limited in 5 billion yuan. We got the fund in the form of financing leaseback. The
lease rate shouldnt be more than the coterminous benchmark loan rate released by Peoples Bank of China. The lease rate should be
adjusted dynamically in line with the changeable benchmark interest rate released by Peoples Bank of China in the lease term. The
finance lease term shouldnt be more than 36 months.
Our company signed the Financing Leaseback contract (No. 2015HYZL0006-ZL-04) with the Hengyi Lease on December 30,
2015. The purchase price of leased assets is 490,000,000.00 yuan. The lease term is from December 30, 2015 to December 30, 2016.
The lease expense rate was 4.35% when the contract was signed.
（3）The 14th session of the 6th board meeting passed the Proposal of Companys Project to Issue A-shares by Non-public Offering
on July 20, 2015. Our company decided to raise 4 billion yuan by issuing shares to specific people by non-public offering. The raised
money is mainly to support the reconstruction project of cold rolling high-strength steel, to support the production-line project of hot
galvanizing in the third cold rolling company and to repay the bank loan. These projects are till in the process of examination and
approval under legal procedures.
XVI. Notes to the Financial Statements of the Parent Company
1. Account receivable
(1) Categorized receivable accounts
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categories Book
Proportio Proportio Book value
Amount Amount Rate value Amount Amount Rate
n n
Receivables on
which impairment
600,793, 151,599, 449,193,4 529,111 140,268,8 388,842,19
provisions are 100.00% 25.23% 100.00% 26.51%
311.03 889.01 22.02 ,083.61 88.98 4.63
provided by risk
groups
600,793, 151,599, 449,193,4 529,111 140,268,8 388,842,19
Total 100.00% 25.23% 100.00% 26.51%
311.03 889.01 22.02 ,083.61 88.98 4.63
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end：
□ Applicable √Not applicable
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □Not applicable
In RMB
Aging Closing balance
195
Bengang Steel Plates Co., Ltd. Annual Report 2015
Account receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
365,509,828.01
Subtotal of within 1 year 365,509,828.01
1-2 years 36,969,642.36 1,848,482.12 5.00%
2-3 years 60,703,042.21 12,140,608.44 20.00%
Over 3 years 137,610,798.45 137,610,798.45 100.00%
Total 600,793,311.03 151,599,889.01 25.23%
Notes ：
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision: □ Applicable √ Inapplicable
□ Applicable √Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The withdrawal amount of the bad debt provision during the reporting period was of RMB11,331,000.03; the
amount of the reversed or collected part during the reporting period was of RMB0.
Significant amount of reversed or recovered bad debt provision:
In RMB
Name Amount Metod
(3) Particulars of the actual verification of accounts receivable during the reporting period
In RMB
Items Amount
Of which: significant actual verification of accounts receivable：
In RMB
Whether occurred
Name Nature Amount Reason Procedure because of related
party transactions
Notes：
(4) Top five of account receivable of closing balance collected by arrears party
Name Year-end balance
Account receivable Proportion(%) Bad debt provision
Benxi North Iron Industry Co.,Ltd. 107,133,739.89 17.83
Benxi Nanfenxinhe MetallurgicalFurnace 87,379,647.78 14.54
196
Bengang Steel Plates Co., Ltd. Annual Report 2015
Co., Ltd.
Liaoyang Petroleum Steel Pipe 35,689,868.98 5.94 3,341,228.18
Manufacturing Co., Ltd.
Bengang Refractory Material Co.,Ltd. 33,705,712.51 5.61
China Oil steel pipe Co., Ltd. 32,873,213.55 5.47 5,891,750.53
Total 296,782,182.71 49.39 9,232,978.71
(5) Derecogniziton of account receivable due to the transfer of financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
Other notes：
2.Other receivables
（1）Other receivables disclosed by category
In RMB
Year-end balance Year –beginning balance
Provision for bad Provision for bad
Book balance Book balance
Category debts Book debts
Book value
value Amoun Proporti
Amount Proporti Amount Proporti Amount Proportion
on(%) on(%) t on(%) (%)
Other Accounts
receivable subject to
impairment 289,792, 62,104,5 227,688,1 359,158 58,276,86 300,882,01
99.40% 21.43% 99.52% 16.23%
assessment by credit 710.30 50.36 59.94 ,877.19 3.66 3.53
risk characteristics of
a portfolio
Other Accounts
receivable of
individual
1,740,00 1,740,000 1,740,0 1,740,000.0
insignificance but 0.60% 0.48%
0.00 .00 00.00 0
subject to individual
impairment
assessment
291,532, 62,104,5 229,428,1 360,898 58,276,86 302,622,01
Total 100.00% 21.30% 100.00% 16.15%
710.30 50.36 59.94 ,877.19 3.66 3.53
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end：
□ Applicable √Not applicable
197
Bengang Steel Plates Co., Ltd. Annual Report 2015
In the groups, other accounts receivable adopting ager methods to withdraw bad debt provision:√ Applicable □Not applicable
In RMB
Year-end balance
Age
Other receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
213,745,667.36
Subtotal of Within 1 year 213,745,667.36
1-2 years 11,621,507.60 581,075.38 5.00%
2-3 years 3,627,575.45 725,515.09 20.00%
Over 3 years 60,797,959.89 60,797,959.89 100.00%
Total 289,792,710.30 62,104,550.36 21.43%
Notes：
1. Providing of bad debt provision on single receivable account with major amount
Standard for recognition of major amount single account:
Balance of account receivable RMB10 million; other account receivable RMB5 million or over.
Providing method of bad debt provisions on single receivable account with major amount
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 an
2.Receivables tested by portfolio:
Basis of recognition for portfolios
The portfolio: Receivable account with minor amount and tested individually and not
impaired
Basis of bad debt provision
The portfolio: Age analysis method
Accounts on age basis in the portfolio:
Age Rate for receivables (%) Rate for other receivables (%)
Within 1 year, (included)
1-2 years (inclusive) 5 5
2-3 years (inclusive) 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
198
Bengang Steel Plates Co., Ltd. Annual Report 2015
(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.
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The withdrawal amount of the bad debt provision during the reporting period was of RMB3,827,686.70; the amount of the reversed
or collected part during the reporting period was of RMB0.
Significant amount of reversed or recovered bad debt provision：
In RMB
Name Reversed or collected amount Method
(3) Particulars of the actual verification of other accounts receivable during the reporting period
In RMB
Items Amount
Of which: significant actual verification of other accounts receivable：
In RMB
Whether occurred
Name Nature Amount Reason Procedure because of related
party trnsactions
Notes of write-off other accounts receivable:
（4）Other accounts receivable classified by the nature of accounts
In RMB
Category
Year-end balance Year-beginning balance
Accounts 255,674,062.26 225,819,363.05
Export tax rebate 30,841,071.89 130,788,172.89
Other 5,017,576.15 4,291,341.25
Total 291,532,710.30 360,898,877.19
（5）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Portion in total other
Name Nature Year-end balance Age Bad debt provision
receivables(%)
4,341,257.18
Zhejiang Sunon Account 2,785,401.00 1-2 years 0.96% 139,270.05
199
Bengang Steel Plates Co., Ltd. Annual Report 2015
Furniture
Manufacturing Co.,
Ltd.
Bengang Group
International Trade Account 2,279,847.47 Within 1 year 0.78%
Co.,Ltd.
Liaoning Huaweixuan
Account 2,261,360.00 Over 3 years 0.78% 2,261,360.00
Coal Co., Ltd.
Benxi Steel
Within 1 year
(Group)Real Estate
Account 2,102,965.57 1,608,798.19，1-2 0.72% 24,708.37
Development Co.,
year 494,167.38
Ltd.
Total -- 13,770,831.22 -- 4.72% 6,766,595.60
(6) Account receivable involving government subsidies
In RMB
Project of govemment Estimated recovering
Name Closing balance Clsing aging
subsidies time, amount and basis
(7) Other account receivable derecognized due to the transfer of financial assets
(8) Amount of transfer other account receivable and assets and liabilities formed by its continuous
involvement
Other notes：
3.Long-term equity investment
In RMB
Year-end balance Year-beginning balance
Items Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Investment to the
1,700,981,902.16 1,700,981,902.16 1,690,981,902.16 1,690,981,902.16
subsidiary
Total 1,700,981,902.16 1,700,981,902.16 1,690,981,902.16 1,690,981,902.16
（1）Investment to the subsidiary
In RMB
Name Opening balance Increase Decrease Closing balance Withdrawn Closing balance
200
Bengang Steel Plates Co., Ltd. Annual Report 2015
impairment of impairment
provision in the provision
reporting period
Guangzhou Benxi
Iron & Steel Trading 1,000,000.00 1,000,000.00
Co., Ltd
Shanghai Bengang
Metallurgy Science
19,200,000.00 19,200,000.00
and Technology Co.,
Ltd.
Bengang Steel Plates
Liaoyang Pellet Co., 529,899,801.38 529,899,801.38
Ltd.
Dalian Benruitong
Automobile Material 65,000,000.00 65,000,000.00
Eechnology Co., Ltd.
Bengang Puxiang
Cold-rolled Sheet 1,019,781,571.10 1,019,781,571.10
Co., Ltd.
Changchun Bengang
Steel &Iron Sales -1,355,124.64 -1,355,124.64
Co., Ltd.
Harbin Bengang
Economic Trade 423,398.23 423,398.23
Co., Ltd.
Nanjing Bengang
Material Sales Co., 2,081,400.65 2,081,400.65
Ltd.
Wuxi Bengang Steel
936,718.57 936,718.57
Sales Co., Ltd.
Xiamen Bengang
1,095,711.66 1,095,711.66
Steel Sales Co., Ltd.
Yantai Bengang Steel
Sales Co., Ltd. 19,600,329.41 19,600,329.41
Tianjin Bengang
Steel Trading Co., 33,318,095.80 33,318,095.80
Ltd.
Benxi Bengang
Steel Sale Co., 5,000,000.00 5,000,000.00
Ltd.
Shenyang
Bengang 5,000,000.00 5,000,000.00
metallurgical
201
Bengang Steel Plates Co., Ltd. Annual Report 2015
Technology Co.,
ltd.
Total l 1,690,981,902.16 10,000,000.00 1,700,981,902.16
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Closing
Adjustme
Withdraw balance
nt of Declarati
Opening Add Other n Closing of
Name other on of cash
balance investmen equity impairme Other balance impairme
comprehe dividends
t changes nt nt
nsive or profit
provision provision
income
I.Joint ventures
II.Associated enterprises
（3）Other Notes
4.Operating income and operating cost
In RMB
2015 2014
Items
Revenue Cost Revenue Cost
Principal business 25,840,994,498.57 27,226,906,929.92 38,330,544,333.50 36,488,199,649.65
Other business 2,682,107,120.42 2,542,383,008.46 3,303,714,027.71 3,063,214,052.38
Total 28,523,101,618.99 29,769,289,938.38 41,634,258,361.21 39,551,413,702.03
Other explanation：
5.Investemnt income
In RMB
Items 2015 2014
Income from long-term cost method
156,578,434.96
investment
Income from bank short-term financial
7,226,589.08 16,389,712.34
products
Total 7,226,589.08 172,968,147.30
202
Bengang Steel Plates Co., Ltd. Annual Report 2015
6.Other
XVII. Supplementary materials
1. Items and amounts of extraordinary gains and losses
√ Applicable □Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss -2,918,523.73
Govemment subsidy recognized in current
gain and loss(excluding those closely related
136,992,233.61
to the Companys business and granted
under the states policies)
Gain/loss from commissioned investment or
7,226,589.08
assets
Gain/loss from debt reorganization 12,200,032.42
Other non-business income and expenditures
5,644,831.10
other than the above
Less: Influenced amount of income tax 639,468.02
Total 158,505,694.46 --
For the Companys non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable √Not applicable
2. Return on net asset and earnings per share
EPS
Profit as of reporting period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to the
Common stock shareholders of -24.11% -1.05 -1.05
Company.
Net profit attributable to the
Common stock shareholders of
-25.42% -1.05 -1.10
Company after deducting of
non-recurring gain/loss.
203
Bengang Steel Plates Co., Ltd. Annual Report 2015
3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
√ Applicable □Not applicable
In RMB
Net profit Net assets
Reporting period Same period of last year Closing balance Opening balance
According to CAS -3,293,624,545.17 232,804,820.19 11,934,100,372.02 15,384,562,323.08
According to international accounting standards
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
√ Applicable □ Not applicable
Name of foreign accounting standard
In RMB
Net profit Net assets
Reporting period Same period of last year Closing balance Opening balance
According to CAS -3,293,624,545.17 232,804,820.19 11,934,100,372.02 15,384,562,323.08
According to international accounting standard
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting
standards, for audit data adjusting differences had been foreign audited, should indicate the name of the
foreign institutions
4.Other
204
Bengang Steel Plates Co., Ltd. Annual Report 2015
XI. Documents available for inspection
1. Financial Statements signed and stamped by the legal representative, CFO, and accounting manager;
2. All of the original copies of documents and announcements that have been published on China Securities
Journal, Securities Times, and Hong Kong Commercial Daily.
3. Original copy of the Auditors Report under the seal of the CPA and signed by and under the seal of certified
accountants.
205
