Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Bengang Steel Plates Co., Ltd.
Semi-Annual Report 2017
August, 2017
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
I. Important Notice, Table of Contents, and Definitions
The Board of Directors, the Supervisory Committee and the Directors, members of
the Supervisory Committee and senior management of the Company guarantee that
there are no misrepresentations or misleading statements, or material omission in this
report, and individually and collectively accept full responsibility for the authenticity,
accuracy and integrity of the information contained in this report.
Wang Shu, Chairman of the Company, Han Ge, the principal in charge of the
accounting, and Wang Shaoyu, Chief of Accounting Affairs, make the pledge for the
authenticity, accuracy and integrity of the attached financial statements.
All the members of the Board of Directors attended the board meeting on which this
report was examined.
The prospective statements contained in this semi-annual report do not constitute any
substantial commitment to the investors. Investors should pay attention to the risks
attached to investment decisions. This report is prepared in both of Chinese and
English. The Chinese version shall prevail when there are any controversial
statements in the two versions.
The Company planed not to distribute cash dividend or bonus shares, and not to
convert capital reserve into share capital.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Table of Contents
I. Important Notice, Table of Contents, and Definitions ................................................... 2
II. Company Profile and Main Financial Index ...................................................................... 5
III. Summary of Company Business............................................................................................. 8
IV. Management Discussion and Analysis ................................................................................11
V. Important Events ......................................................................................................................... 17
VI. Status of Share Capital Changes and Shareholders....................................................... 42
VII. Status of Preferred Shares ....................................................................................................... 47
VIII. Status of Directors, Supervisors, Senior Executives .................................................... 48
IX. Relevant Information about Corporate Bonds ................................................................ 49
X. Financial Report .......................................................................................................................... 54
XI. Documents available for inspection .................................................................................. 204
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Definition
Terms to be defined Refers to Definition
Bengang Bancai, Bengang Steel, the Company,
Refers to Bengang Steel Plates Co., Ltd.
the Listed Company
Bengang Group Refers to Bengang Group Co., Ltd.
Bengang Co. Refers to Benxi Steel & Iron (Group) Co., Ltd.
Liaoning Provincial State-asset Administration Refers to Liaoning State-owned Asset Supervisory and Management Committee
SSE Refers to Shenzhen Stock Exchange
Bengang Puxiang Refers to Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
II. Company Profile and Main Financial Index
I. Company Information
Stock abbreviation Bengang Bancai, Bengangban B Stock Code 000761, 200761
Stock exchange for listing Shenzhen Stock Exchange
Company name in Chinese 本钢板材股份有限公司
Abbreviation of Company name in
本钢板材
Chinese
Company name in English (If any) BENGANG STEEL PLATES CO.,LTD.
Abbreviation of Company name in
BSP
English (If any)
Legal representative Wang Shu
II. Contact Information
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. Other Information
1. Contact Information of the Company
Whether the Company’s registration address, office address and post code, web Address and email address have changed
□ Applicable √ Not applicable
The Company’s registration address, office address and post code, web Address and email address have not changed during the
reporting period. Please refer to Annual Report 2016 for details.
2. Information Disclosure and Place for Consulting
Whether the information disclosure and place for consulting have changed
□ Applicable √ Not applicable
Name of newspaper selected by the Company for information release, website appointed by CSRC for publishing semi-annual report
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
and lodging address of semi-annual report of the Company have not changed during the reporting period. Please refer to Annual
Report 2016 for details.
IV. Main Accounting Data and Financial Index
Whether the Company makes retroactive adjustment or restatement of the accounting data of the previous year
□ Yes √ No
Increase or decrease in this
Same period in
This reporting period reporting period over the
previous year
previous year (%)
Operating income 20,736,486,903.74 12,629,584,569.35 64.19%
Net profit attributable to the shareholders of
523,635,653.57 182,538,176.32 186.86%
the listed company
Net profit attributable to the shareholders of
listed company after deducting non-recurring 508,873,423.83 164,516,206.59 209.32%
gain/loss
Net cash flows generated by operating
-4,047,305,684.72 2,390,777,363.52 -269.29%
activities
Basic earnings per share 0.167 0.058 187.93%
Diluted earnings per share 0.167 0.058 187.93%
ROE 4.04% 1.52% 2.52%
Increase or decrease at the end of
At the end of this At the end of previous
this reporting period over the
reporting period reporting period
previous year (%)
Total assets 54,631,496,549.62 54,155,710,718.91 0.88%
Net assets attributable to shareholders of the
13,249,274,456.60 12,715,354,551.15 4.20%
listed company
V. Differences between Domestic and Foreign Accounting Standards
1. Differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese
accounting standards.
√ Applicable □ Not applicable
Unit: Yuan
Net profit attributable to the shareholders of the Net assets attributable to the shareholders of the
listed company listed company
This reporting period Previous reporting period Ending balance Beginning balance
According to Chinese
523,635,653.57 182,538,176.32 13,249,274,456.60 12,715,354,551.15
accounting standards
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Items and amounts adjusted according to IFRS
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
□ Applicable √ Not applicable
There are no differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting
standards during the reporting period.
3. Accounting data differences between domestic and foreign accounting standards
□ Applicable √ Not applicable
VI. Items and Amount of Non-Current Gains and Losses
√ Applicable □ Not applicable
Unit: Yuan
Items Amount Notes
Profit or loss from disposal of non-current assets (including the
-1,578,126.30
write-off part for which assets impairment provision is made)
Details of government subsidies recorded into current profits and
loss(except such government subsidy closely related to the
company’s normal business operation,，meeting the regulation of 15,047,000.00
national policy and enjoyed constantly in certain quota or quantity
according to a certain standard)
Profit or loss from investment or assets entrusted to others 3,294,593.14
Profit or loss from debt restructuring 822,116.45
Other non-operating revenue and expenditure other than above
2,130,078.13
items
Less: Impact of income tax 4,928,915.36
Impact of minority interests (after tax) 24,516.32
Total 14,762,229.74 --
Explanation for defining non-recurring gains and losses items according to the "Public Offering of Securities Information Disclosure
Explanatory Notice No. 1 – Non-Recurring Gains and Losses", and reasons for defining non-recurring gains and losses items listed in
the document as recurring items.
□ Applicable√ Not applicable
There exists no situation of defining non-recurring gains and losses items listed in the document as recurring items.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
III. Summary of Company Business
I. the Company's main business during the reporting period
Whether the Company needs to comply with the disclosure requirement for special industry
No
During the reporting period, the main businesses of the company involves iron and steel smelting, rolling processing, electricity
generation, coal chemical industry, special steel profile, railway, import and export trade, research and development, product sales,
etc. Major products include hot-rolled plates, cold-rolled plates, zinc steel plates, special steel, silicon steel, etc. that are widely
applied in fields including automobile, household appliances, petrochemical engineering, aerospace, machine manufacturing, energy
transportation, architectural decoration, metal parts, etc. The Company can stably manufacture productions which represent the
highest level of steel and iron industry, including high-end automobile steel sheet, pipe line, and etc. in large volume and the quality
of these productions can reach the internationally advanced quality level.
During the reporting period, the Company scientifically adjusts the production organization mode of each line, taking the economic
operation and reducing the efficiency as the core, promoting the production of all processes to stabilize smoothly, and improving the
quality of economic operation steadily. The Company adheres to market-oriented strategy, continuously focused on customer needs,
optimizes the structure of the perfect layout, strengthens market development, thus product efficiency has been continuously
enhanced. Through the focus on coal blending, strict controls on non-productive expenses, the Company actively carried out tapping
the potential by benchmarking and other measures to continuously reduce the cost level.
II. Major Changes in Main Assets
1. Major Changes in Main Assets
Main assets Major changes
As at 30 June 2017, balance of construction materials was RMB 4,558.9 thousand,
Construction materials decreased by 41.43% compared with beginning balance, mainly due to an increase in
drawing.
As at 30 June 2017, balance of notes receivable was RMB 3,486,513.7 thousand,
Notes receivable increased by 71.69% compared with beginning balance, mainly due to an increase in debt
collection.
As at 30 June 2017, balance of prepayments was RMB 658,157.9 thousand, increased by
Prepayments 33.27% compared with beginning balance, mainly due to an increase in prepayment
business.
As at 30 June 2017, balance of interest receivable was RMB 2,663.3 thousand, decreased
Interest receivable by 36.72% compared with beginning balance, mainly due to a decrease in fixed time
deposits.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
As at 30 June 2017, balance of other receivables was RMB 165,294.6 thousand,
Other receivables increased by 40.19% compared with beginning balance, mainly due to an increase in
current payments.
As at 30 June 2017, balance of other current assets was RMB 280,833.2 thousand,
Other current assets decreased by 45.30% compared with beginning balance, mainly due to the reduction of
short-term banking products in the end of this period.
As at 30 June 2017, balance of available-for-sale financial assets was RMB 5,856.5
Available-for-sale financial assets thousand, decreased by 60.58% compared with beginning balance, mainly due to the
transfer to long-term equity investment.
2. Main Information of Overseas Assets
□ Applicable √ Not applicable
III. Analysis on Core Competitiveness
Whether the Company needs to comply with the disclosure requirement for special industry
No
In order to comprehensively upgrade the level of technological innovation and the ability to create efficiency, closely surround the
three factors of variety, quality, the Company strengthened the variety adjustment and market development, improved product quality
stability and capacity of guarantee, promoted low-cost and green manufacturing technology, and focused on the constraints of
enterprise development key technical problems in 2017.
The Company actively carried out variety enhancement, product development, production and marketing research, optimized the
variety structure, improved profitability. The Company completed new product development of 32 brands in the first half year,
including Martensitic dual-phase steels for wheel spokes RS590-M, high-grade corrosion-resistant pipeline steel, cold-rolled low
alloy high-strength steel HC500La, hot-rolled pickling plate SP231-440F, SP251-590, ball mill steel ball and grinding rod for foreign
trade, etc. Performance testing of all qualified to meet user requirements; some varieties have realized batch supply.
The Company actively carried out product certification and factory certification. In the first half year, a total of 21 brands of
cold-rolled, galvanized, pickling plate, and special steel products have been certificated. Certifying users include General Motors,
GAC, SAIC, Brilliance, Geely, FAW and many other automotive plants. At present, Volkswagen, GM, SAIC and other 45 products
certification work is underway. Among certificated products, SP252-540F has passed the Nissan Automotive Global Certification,
galvanized product CR420LA has passed the GM Pan-Asia Global Certification. Also, performance of three brands CR590T,
340Y-DP, and CR180B2 has met GM requirements and will pass certification soon. The Company organized and completed the
factory certification for Shenlong automobile, FAW Volkswagen automobile, Dongfeng Nissan, SAIC, India BIS, etc. At present, the
Company passed the preliminary factory review for Volkswagen DY project, which is a milestone for the automobile products
certification work of the Company.
The Company focused on national science and technology innovation policy and guide direction, continued to build high-level
research and development platform, declared for national, provincial major science and technology projects through multi-channel.
The Company organized the declarations for one project of "Local Professional Technology Innovation Platform Central Guide Local
Science And Technology Development Special Funds" by the State Ministry of Science and Technology, three projects of national
key research and development program, three projects of "NSFC - Liaoning Joint Fund" by Provincial Science And Technology
Department. In addition, the Company actively encouraged the doctoral research and development staff to declare the provincial
science and technology department doctoral start-up fund projects.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Using the project as the carrier, the Company actively carried out "production, schooling and research" cooperation and technical
exchanges with universities and scientific research institutes to enhance the technological innovation level of the Company.
Combined with the current status of existing technology and equipment, as well as the latest technology development in the industry,
the Company actively organized technical exchange activities with Shenyang Metal Institute of CAs, Northeastern University,
Beijing University of Science and Technology, Jilin Universities and American Levy Corporation.
In the first half year, a total of 34 patents were authorized, 15 patents were accepted for review by the State Patent Office. The
Company has completed the certification as a Liaoning Province Intellectual Property Superiority Enterprise.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
IV. Management Discussion and Analysis
I. General
In the first half year, influence by the state policies to resolve the excess capacity and clean up the production of substandard steel
products, the steel market gradually tuned better. The Company adjusted production mode, strengthened economic operation, and
thus the benefit improved compared to same period in previous year. During January to June, the Company produced 4.8568 million
tons of pig iron, which decreased by 0.83% compared to same period in previous year; produced 4.9149 million tons crude steel,
which increased by 2.86% compared to same period in previous year; produced 6.3215 million tons hot-rolled plate, which increased
by 15.63% compared to same period in previous year; produced 2.8491 million tons cold-rolled plate, which increased by 53.77%
compared to same period in previous year; and produced 402,900 tons special steel, which increased by 11.7% compared to same
period in previous year.
The main work done in production operation during the first half year is as followings:
1. The Company vigorously promoted new product research and development, experimental research, application, technical services,
and constantly improved the ability of scientific and technological innovation. By adjusting the product structure, and carrying out
special management to key varieties with high profitability, the Company constantly expanded the market share of high value-added
products.
2. The Company actively expanded procurement methods, and actively reduced procurement costs through the benchmarking price
comparison, variety substitution, structural adjustment, timing procurement and other measures.
3. The Company focused on coal blending to reduce cost, strengthened economic operation. In accordance with the principle of
cost-effective, at the same time of ensuring the stability of production, the Company achieved lower production costs through the
development of new products to optimize the coal blending structure. The Company strictly controlled non-productive expense
expenditure, and significantly reduced the non-productive expense quota.
4. The Company adhered to the principle of maximizing economic benefits, innovated production organization mode. Taking the
domestic and foreign advanced steel enterprises as the benchmark, the Company actively carried out key processes for tapping the
mark, and effectively improved own short board, lowered the cost consumption level.
5. The Company strengthened environmental protection responsibility implementation, tightened environmental protection facilities
operation management. The Company strengthened the source of pollution control, and focused on day-to-day supervision and
inspection of water, gas, sound, slag and others, implemented closed-loop management measures. The Company pushed forward the
construction of environmental protection project to ensure pollutant emission reduction targets.
II. Main Business Analysis
For relevant information please refer to “Management Discussion and Analysis 1. General”.
Year-on-year changes in major financial data:
Unit: Yuan
Increase or decrease in this
Same period in
This reporting period reporting period over the Reason for change
previous year
previous year (%)
Sales and prices in this
Operating Income 20,736,486,903.74 12,629,584,569.35 64.19%
period increased over
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
same period in previous
year
Sales and raw material
prices increased over
Operating Cost 18,690,665,966.11 10,914,182,302.04 71.25%
same period in previous
year
Freight expenses
Selling and distribution
587,632,707.43 430,061,063.14 36.64% increased over same
expenses
period in previous year
General and
358,951,405.08 351,954,718.48 1.99%
administrative expenses
Net exchange losses
Financial expenses 381,513,404.80 586,667,825.19 -34.97% decreased over same
period in previous year
Income tax expense 117,105,061.16 140,062,221.29 -16.39%
Investment in R&D
Research & Expenses increased over
690,127,962.35 489,537,695.09 40.98%
Development Expenses same period in previous
year
Cash paid for goods and
Net cash flows generated services increased over
-4,047,305,684.72 2,390,777,363.52 -269.29%
from operating activities same period in previous
year
Cash received from
Net cash flow generated
return on investments
from investment -454,763,829.82 -868,753,571.38 47.65%
increased over same
activities
period in previous year
Cash received from
Net cash flow generated borrowings increased
3,755,056,060.56 855,170,792.73 339.10%
from financing activities over same period in
previous year
Net cash flows generated
Net increase in cash and from operating activities
-788,599,857.18 2,765,662,683.48 -128.51%
cash equivalents decreased over same
period in previous year
Whether the Company’s profit composition or source of profit during the reporting period changed significantly
□ Applicable √ Not applicable
The Company’s profit composition or source of profit during the reporting period did not change significantly.
The composition of main business:
Unit: Yuan
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Operating income Operating cost Gross margin
change over same change over same change over same
Operating Income Operating Cost Gross margin
period in previous period in previous period in previous
year year year
By industries
Industry 19,476,278,905.41 17,638,682,335.86 9.44% 63.79% 71.47% -4.05%
By products
Steel plate 19,219,245,053.74 17,345,350,725.13 9.75% 63.73% 70.74% -3.71%
Billet
Others 257,033,851.67 293,331,610.73 -14.12% 68.95% 129.14% -29.97%
By regions
Northeast 4,467,506,012.00 4,062,831,285.75 9.06% 77.02% 81.05% -2.02%
North China 2,419,559,512.78 2,201,840,664.41 9.00% 66.64% 71.81% -2.73%
East China 5,817,564,509.05 5,278,286,740.22 9.27% 62.13% 72.05% -5.23%
Northwest 46,743,069.37 42,255,282.19 9.60% 60.73% 64.79% -2.23%
Central south 851,113,388.17 773,958,212.60 9.07% 24.17% 28.39% -2.98%
Export 5,873,792,414.05 5,279,510,150.71 10.12% 62.59% 72.26% -5.04%
III. Analysis of Non-core Business
√ Applicable □ Not applicable
Unit: Yuan
Proportion in total
Amount Explanation of cause Sustainable (yes or no)
profit
Income on Income from external
3,294,593.14 0.51% Yes
investment financial management
Gains or losses
from the change in 0.00%
fair value
Impairment of Inventory loss and bad debt
-43,390,454.54 -6.71% No
assets loss
Non-operating
21,014,488.58 3.25% No
income
Non-operating
4,593,420.30 0.71% No
expenses
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
IV. Assets and Liabilities
1. Significant Change of Assets Components
Unit: Yuan
At the end of this reporting At the end of the Same period
period in previous year
Proportion
Proportion in Proportion in Notes to significant changes
change
Amount the total Amount the total
assets (%) assets (%)
Cash at bank and 12,240,579,15 7,772,079,707.
22.41% 16.13% 6.28%
on hand 1.57 93
Accounts 536,054,820.2
0.98% 452,703,991.36 0.94% 0.04%
receivable 1
9,834,703,845. 9,504,612,643.
Inventories 18.00% 19.72% -1.72%
66 59
19,753,582,76 19,085,082,253
Fixed assets 36.16% 39.60% -3.44%
8.45 .61
Construction in 7,030,049,975. 7,037,486,548.
12.87% 14.60% -1.73%
progress 69 61
22,787,674,40 18,182,664,879
Short-term loans 41.71% 37.73% 3.98%
0.00 .48
3,161,338,135. 2,288,189,324.
Long-term loans 5.79% 4.75% 1.04%
87 24
2. Assets and Liabilities Measured at Fair Value
□ Applicable √ Not applicable
3. Restricted Assets by the End of the Period
Book value at the end of this
Items Reason of restriction
reporting period
Monetary assets 755,604,520.08 Deposit for notes and L/C
Notes receivable 1,385,808,380.90 Pledged for acceptance bill
Total 2,141,412,900.98
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
V. Investment
1. General
□ Applicable √ Not applicable
2. Acquiring Significant Equity Investment in the Reporting Period
□ Applicable √ Not applicable
3. Undergoing Significant Non-equity Investment in the Reporting Period
□ Applicable √ Not applicable
4. Investment of Financial Assets
(1) Investment in Securities
□ Applicable √ Not applicable
(2) Investment in Derivatives
□ Applicable √ Not applicable
VI. Significant Assets and Equity Sold in Reporting Period
1. Significant Assets Sold
□ Applicable √ Not applicable
2. Substantial Equity Sold
□ Applicable √ Not applicable
VII. Analysis on Main Subsidiaries and Share Participating Companies
√ Applicable □ Not applicable
Main subsidiaries and the joint-stock companies influencing over 10% net profit of the Company
Unit: Yuan
Company Company Main Registered Operating
Industry Total assets Net assets Turnover Net Profit
Name type business capital profit
Bengang Processing
Steel rolling 1,920,000,0 4,210,054,9 1,983,584,0 3,953,643,0 37,340,60 28,005,452.6
Puxiang Subsidiary and sales of
process 00.00 27.30 63.79 69.30 3.59 8
Cool steel
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Rolling
Steel Sheet
Co., Ltd.
Acquirement and disposal of subsidiaries during the reporting period
□ Applicable √ Not applicable
Illustration of main joint-stock companies
VIII. Structured Entities controlled by the Company
□ Applicable √ Not applicable
IX. Forecast of operating performance for during January to September 2017
Warning and reason for that forecast of the cumulative net profit from the beginning of the year to the end of the next reporting
period might be a loss or due to significant change compared to the previous year
□ Applicable √ Not applicable
X. Risks and countermeasures for the Company
1. Operational risk
At present, the domestic steel industry is still in full competition, and the dividend from the structural reform of the supply side
remains to be observed. In the first half year, domestic steel prices warmed up but fluctuated; in the future, the supply side reform
will continue to deepen, the steel industry reshuffle will continue to disturb the stability of steel prices, and then affect the Company's
operating efficiency. At the same time, the main raw fuel for the company is iron ore, coal, etc. The related raw fuel prices will
directly affect the Company's production costs and operating efficiency. In the future, the volatility of the raw fuel price will have a
certain impact on the Company's profit level.
Countermeasures: Strengthen the market trend, scientifically and rationally formulate sales policies and strategies, and strive to form
varieties, regions, and users’ market competitive advantages. At the same time, comprehensively improve the level of technological
innovation, independent innovation capabilities, increase the development of high value-added products, improve the quality of
varieties and physical, and improve product efficiency. Strengthen the bulk raw fuel market judgments, strengthen communication
and strategic cooperation with suppliers, and reduce the impact of raw fuel purchase price fluctuation by increasing timing
procurement and strengthening inventory management measures.
2. Environmental risk
Government supervision and law enforcement is more stringent, and the enterprise environmental protection supervision and
standards continue to improve. The enhanced public awareness of environmental protection leads to higher requirements of
environmental protection for enterprises. Steel enterprises are facing a huge environmental pressure.
Countermeasures: Strengthen the internal environmental protection, accelerate the implementation of key energy saving and emission
reduction projects, strengthen the implementation of environmental protection responsibility, enhance the control of source of
pollution, strict environmental protection facilities operation management, to ensure that the discharge meets the standards.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
V. Important Events
I. Annual General Meeting of Shareholders and Temporary General Meeting of
Shareholders held during the Reporting Period
1. Annual General Meeting of Shareholders
Investor Index of information
Sessions Type Meeting Date Date of disclosure
participation ratio disclosure
Announcement
No.:2017-025
2016 Annual General Annual General
78.56% 1 June, 2017 2 June, 2017 Disclosure address
Meeting Meeting
http://www.cninfo.co
m.cn
2. Temporary general meeting Request by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
II. Profit Distribution or Capital Reserve Conversion Proposal in the Reporting Period
□ Applicable √ Not applicable
The Company planed not to distribute cash dividend or bonus shares, and not to convert capital reserve into share capital during the
reporting period.
III. The Fulfilled Commitments During The Reporting Period and Under-Fulfillment
Commitments by the End of the Period Made by Actual Controller, Acquirer, Director,
Supervisor, Senior Management Personnel and other Related Parties.
□ Applicable √ Not applicable
There was no fulfilled commitment during the reporting period or under-fulfillment commitment by the end of the period made by
actual controller, acquirer, director, supervisor, senior management personnel and other related parties.
IV. Appointment and Dismiss of Certified Accountant’s Firm
Whether the semi-annual report has been audited
□ Yes √ No
The semi-annual report has not been audited
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
V. Illustrations of the Board of Directors and Supervisory Committee on the Non-standard
Audit Report Issued by the CPAs for this Reporting Period
□ Applicable √ Not applicable
VI. Illustrations of the Board of Directors on the Non-standard Audit Report Issued by the
CPAs for Previous Reporting Period
□ Applicable √ Not applicable
VII. Bankrupt and Reforming Events
□ Applicable √ Not applicable
There was no bankrupt and reforming event during the reporting period.
VIII. Lawsuits and Arbitrations
Significant lawsuits and arbitrations
□ Applicable √ Not applicable
There was no significant lawsuit or arbitrations during the reporting period.
Others lawsuits and arbitrations
□ Applicable √ Not applicable
IX. Punishment and Rectification
□ Applicable √ Not applicable
There was no punishment or rectification during the reporting period.
X. Credit Status of the Company and its Controlling Shareholders and Actual Controllers
√ Applicable □ Not applicable
There was no effective judgment of a court or large amount of debt maturity that the Company, its controlling shareholders and actual
controller failed to perform or pay off during the reporting period.
XI. Implementation Situation of Stock Incentive Plan of the Company, Employee Stock
Ownership Plan or Other Employee Incentive Measures
□ Applicable √ Not applicable
There was no stock incentive plan, employee stock ownership plan or other employee incentives that have been implemented.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
XII. Major Related Party Transactions
1. Related party transactions relevant to daily operations
√ Applicable □ Not applicable
The
Amount
approve Whether
Content Content of Whether Whether
Type of Price of Proporti d exceed
of of related exceed exceed Index
related related on of trading the Date of
Related Relation related related party the the of
party party similar limit of approve disclosu
parties ship party party transacti approve approve disclos
transacti transacti transacti transacti d re
transacti transacti ons d d ure
ons ons ons ons limited
ons ons RMB limited limited
RMB (Y/N)
10,000
10,000
Benxi
Purchas Account Execute
Steel &
Parent e of s On Related accordin
Iron 12,781.8
Compan goods payable agreeme agreeme 0.68% 35,000 No g to the No
(Group) 7
y and for nt nt price agreeme
Co.,
services repair nt
Ltd.
Benxi
Purchas Execute
Steel &
Parent e of Land On Related accordin
Iron
Compan goods leasing agreeme agreeme 2,734.57 0.15% No g to the No
(Group)
y and fee nt nt price agreeme
Co.,
services nt
Ltd.
Bengan
g
Cold-rol Purchas Execute
led Same e of On Related accordin
Stainles controll goods Products agreeme agreeme 17.5 0.00% 500 No g to the Yes
s Steel er and nt nt price agreeme
Dandon services nt
g Co.,
Ltd.
Benxi
Steel & Purchas Execute
Iron Same e of On Related accordin
Labor
(Group) controll goods agreeme agreeme 253.76 0.01% No g to the No
cost
Mining er and nt nt price agreeme
Co., services nt
Ltd.
19
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Benxi
Raw
Steel & Purchas Execute
material
Iron Same e of On Related accordin
and 217,638.
(Group) controll goods agreeme agreeme 11.64% 400,000 No g to the Yes
supplem 69
Mining er and nt nt price agreeme
entary
Co., services nt
material
Ltd.
Benxi
Steel & Purchas Execute
Iron Same e of On Related accordin
(Group) controll goods Freight agreeme agreeme 3.18 0.00% No g to the No
Mining er and nt nt price agreeme
Co., services nt
Ltd.
Benxi
Steel &
Raw
Iron Purchas Execute
material
(Group) Same e of On Related accordin
and 12,820.0
Metallur controll goods agreeme agreeme 0.69% 20,000 No g to the Yes
supplem 8
gy er and nt nt price agreeme
entary
Residue services nt
material
s Co.,
Ltd.
Benxi
Steel &
Iron
(Group) Purchas Execute
Steel & Same e of On Related accordin
Processi
Iron controll goods agreeme agreeme 76.12 0.00% 1,000 No g to the No
ng fee
Process er and nt nt price agreeme
and services nt
Logistic
s Co.,
Ltd.
Benxi
Steel &
Iron Purchas Execute
(Group) Same e of Raw On Related accordin
Real-est controll goods material agreeme agreeme 5,006.75 0.27% 12,000 No g to the No
ate er and s nt nt price agreeme
Develop services nt
ment
Co.,
20
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Ltd.
Benxi
Steel &
Iron
Purchas Execute
(Group)
Same e of On Related accordin
Machine Spare
controll goods agreeme agreeme 5,522.36 0.30% 30,000 No g to the No
ry parts
er and nt nt price agreeme
Manufa
services nt
cture
Co.,
Ltd.
Benxi
Steel &
Iron
Purchas Execute
(Group)
Same e of On Related accordin
Machine Repair
controll goods agreeme agreeme 368.87 0.02% No g to the No
ry services
er and nt nt price agreeme
Manufa
services nt
cture
Co.,
Ltd.
Benxi
Steel &
Purchas Execute
Iron
Same e of On Related accordin
(Group) Spare
controll goods agreeme agreeme 734.34 0.04% 70,000 No g to the No
Constru parts
er and nt nt price agreeme
ction
services nt
Co.,
Ltd.
Benxi
Steel &
Purchas Execute
Iron
Same e of On Related accordin
(Group) Project
controll goods agreeme agreeme 12,940.6 0.69% No g to the No
Constru fee
er and nt nt price agreeme
ction
services nt
Co.,
Ltd.
Benxi
Purchas Execute
Steel &
Same e of On Related accordin
Iron Repair
controll goods agreeme agreeme 3,237.98 0.17% No g to the No
(Group) services
er and nt nt price agreeme
Constru
services nt
ction
21
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Co.,
Ltd.
Benxi
Steel & Raw
Purchas Execute
Iron material
Same e of On Related accordin
(Group) and
controll goods agreeme agreeme 464.78 0.02% No g to the Yes
Constru supplem
er and nt nt price agreeme
ction entary
services nt
Co., material
Ltd.
Benxi
Steel &
Purchas Execute
Iron
Same e of On Related accordin
(Group)
controll goods Freight agreeme agreeme 155.04 0.01% No g to the No
Constru
er and nt nt price agreeme
ction
services nt
Co.,
Ltd.
Benxi
Steel &
Iron
Purchas Execute
(Group)
Same e of On Related accordin
Industri Spare
controll goods agreeme agreeme 8,905.66 0.48% No g to the No
al parts
er and nt nt price agreeme
Develop
services nt
ment
Co.,
Ltd.
Benxi
Steel &
Iron Raw
Purchas Execute
(Group) material
Same e of On Related accordin
Industri and 10,672.6
controll goods agreeme agreeme 0.57% 45,000 No g to the Yes
al supplem 6
er and nt nt price agreeme
Develop entary
services nt
ment material
Co.,
Ltd.
Benxi Purchas Execute
Steel & Same e of On Related accordin
Repair
Iron controll goods agreeme agreeme 1,117.99 0.06% No g to the No
services
(Group) er and nt nt price agreeme
Industri services nt
22
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
al
Develop
ment
Co.,
Ltd.
Benxi
Steel &
Iron
Purchas Execute
(Group)
Same e of On Related accordin
Industri
controll goods Freight agreeme agreeme 137.06 0.01% No g to the No
al
er and nt nt price agreeme
Develop
services nt
ment
Co.,
Ltd.
Benxi
Steel &
Iron
Purchas Execute
(Group)
Same e of On Related accordin
Industri Project
controll goods agreeme agreeme 139.82 0.01% No g to the No
al fee
er and nt nt price agreeme
Develop
services nt
ment
Co.,
Ltd.
Benxi
Raw
Steel &
material
Iron
Purchas & Execute
(Group)
Same e of supplem On Related accordin
Constru
controll goods entary agreeme agreeme 139.66 0.01% 25,000 No g to the Yes
ction
er and material nt nt price agreeme
and
services s & nt
Repairin
spare
g Co.,
parts
Ltd.
Benxi
Steel &
Purchas Execute
Iron
Same e of On Related accordin
(Group) Project
controll goods agreeme agreeme 2,870.64 0.15% No g to the No
Constru fee
er and nt nt price agreeme
ction
services nt
and
Repairin
23
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
g Co.,
Ltd.
Benxi
Steel &
Iron
Purchas Account Execute
(Group)
Same e of s On Related accordin
Constru
controll goods payable agreeme agreeme 2,130.99 0.11% No g to the No
ction
er and for nt nt price agreeme
and
services repair nt
Repairin
g Co.,
Ltd.
Bengan Raw
Purchas Execute
g material
Same e of On Related accordin
Electron and
controll goods agreeme agreeme 8,426.07 0.45% 21,000 No g to the Yes
ics and supplem
er and nt nt price agreeme
Gas Co., entary
services nt
Ltd. material
Bengan
Purchas Execute
g
Same e of On Related accordin
Electron Project
controll goods agreeme agreeme 41.94 0.00% No g to the No
ics and fee
er and nt nt price agreeme
Gas Co.,
services nt
Ltd.
Bengan
Purchas Execute
g
Same e of On Related accordin
Electron Repair
controll goods agreeme agreeme 692.18 0.04% No g to the No
ics and services
er and nt nt price agreeme
Gas Co.,
services nt
Ltd.
Benxi
High-tec
h Purchas Execute
Drilling Same e of On Related accordin
Spare
Tools controll goods agreeme agreeme 39.31 0.00% 800 No g to the No
parts
Manufa er and nt nt price agreeme
cture services nt
Co.,
Ltd.
Benxi Same Purchas Labor On Related Execute
New controll e of protecti agreeme agreeme 29.45 0.00% 2,000 No accordin No
Career er goods on fee nt nt price g to the
24
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Develop and agreeme
ment services nt
Co.,
Ltd.
Liaonin
g Purchas Execute
Metallur Same e of On Related accordin
Spare
gy controll goods agreeme agreeme 1,319.31 0.07% 3,000 No g to the No
parts
Technici er and nt nt price agreeme
an services nt
College
Liaonin
g Purchas Execute
Metallur Same e of On Related accordin
Spare
gy controll goods agreeme agreeme 230.33 0.01% 1,500 No g to the No
parts
Technici er and nt nt price agreeme
an services nt
College
Bengan
g Group
Internati Purchas Execute
onal Same e of On Related accordin
Agency
Econom controll goods agreeme agreeme 3,685.68 0.20% 36,000 No g to the No
fee
ic and er and nt nt price agreeme
Trading services nt
Co.,
Ltd.
Bengan
g Group
Internati Purchas Execute
onal Same e of Port On Related accordin
Econom controll goods surcharg agreeme agreeme 7,751.15 0.41% No g to the No
ic and er and es nt nt price agreeme
Trading services nt
Co.,
Ltd.
Benxi
Steel & Purchas Execute
Iron Same e of On Related accordin
Spare
(Group) controll goods agreeme agreeme 693.23 0.04% 8,000 No g to the No
parts
Informat er and nt nt price agreeme
ion and services nt
Automat
25
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
ic Tech
Co.,
Ltd.
Benxi
Steel &
Iron
Purchas Execute
(Group)
Same e of On Related accordin
Informat Repair
controll goods agreeme agreeme 305.94 0.02% No g to the No
ion and services
er and nt nt price agreeme
Automat
services nt
ic Tech
Co.,
Ltd.
Benxi
Steel &
Iron
Purchas Execute
(Group)
Same e of On Related accordin
Thermal Heating
controll goods agreeme agreeme 168.6 0.01% No g to the No
Power costs
er and nt nt price agreeme
Develop
services nt
ment
Co.,
Ltd.
Benxi
Steel &
Iron Raw
Purchas Execute
(Group) material
Same e of On Related accordin
Thermal and
controll goods agreeme agreeme 0 0.00% 2,000 No g to the Yes
Power supplem
er and nt nt price agreeme
Develop entary
services nt
ment material
Co.,
Ltd.
Benxi
Steel & Purchas Execute
Iron Same e of On Related accordin
Design
(Group) controll goods agreeme agreeme 235.9 0.01% 3,000 No g to the No
fees
Designi er and nt nt price agreeme
ng services nt
Institute
Benxi Same Purchas Raw On Related Execute
472,729. 1,350,00
Beiying controll e of material agreeme agreeme 25.29% No accordin Yes
42 0
Steel & er goods and nt nt price g to the
26
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Iron and supplem agreeme
(Group) services entary nt
Co., material
Ltd.
Benxi
Beiying Purchas Execute
Steel & Same e of Energy On Related accordin
50,184.0
Iron controll goods & agreeme agreeme 2.68% No g to the No
8
(Group) er and Power nt nt price agreeme
Co., services nt
Ltd.
Benxi
Beiying Purchas Execute
Steel & Same e of On Related accordin
Iron controll goods Freight agreeme agreeme 889.48 0.05% No g to the No
(Group) er and nt nt price agreeme
Co., services nt
Ltd.
Benxi
Beiying Purchas Execute
Steel & Same e of On Related accordin
Labor
Iron controll goods agreeme agreeme 5,563.01 0.30% No g to the No
cost
(Group) er and nt nt price agreeme
Co., services nt
Ltd.
Benxi
Beiying Purchas Execute
Steel & Same e of On Related accordin
Spare
Iron controll goods agreeme agreeme 1,844.21 0.10% No g to the No
parts
(Group) er and nt nt price agreeme
Co., services nt
Ltd.
Liaonin
g
Hengton
g Purchas Raw Execute
Metallur Same e of material On Related accordin
10,661.5
gical controll goods and agreeme agreeme 0.57% 18,000 No g to the Yes
4
Equipm er and spare nt nt price agreeme
ent services parts nt
Manufa
cture
Co.,
27
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Ltd.
Liaonin
g Purchas Raw Execute
Hengtai Same e of material On Related accordin
Heavy controll goods and agreeme agreeme 3,873.44 0.21% 7,000 No g to the Yes
Machine er and spare nt nt price agreeme
ry Co., services parts nt
Ltd.
Liaonin
g Purchas Execute
Repair
Hengtai Same e of On Related accordin
and
Heavy controll goods agreeme agreeme 636.47 0.03% No g to the No
labor
Machine er and nt nt price agreeme
cost
ry Co., services nt
Ltd.
Purchas Execute
Bengan
e of Property On Related accordin
g Group Controll
goods manage agreeme agreeme 31.07 0.00% 800 No g to the No
Co., er
and ment fee nt nt price agreeme
Ltd.
services nt
Bengan
Execute
g Sales of
Same Energy On Related accordin
Electron goods
controll & agreeme agreeme 49.63 0.00% 500 No g to the No
ics and and
er Power nt nt price agreeme
Gas Co., services
nt
Ltd.
Raw
Benxi material
Beiying & Execute
Sales of
Steel & Same supplem On Related accordin
goods 34,778.4
Iron controll entary agreeme agreeme 1.68% 150,000 No g to the Yes
and 3
(Group) er material nt nt price agreeme
services
Co., s& nt
Ltd. spare
parts
Benxi
Beiying Execute
Sales of
Steel & Same On Related accordin
goods
Iron controll Products agreeme agreeme 497.33 0.02% No g to the Yes
and
(Group) er nt nt price agreeme
services
Co., nt
Ltd.
28
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Benxi
Beiying Execute
Sales of
Steel & Same Energy On Related accordin
goods 14,389.3
Iron controll & agreeme agreeme 0.69% No g to the No
and 1
(Group) er Power nt nt price agreeme
services
Co., nt
Ltd.
Benxi
Steel &
Iron
Execute
(Group) Sales of
Same Energy On Related accordin
Real-est goods
controll & agreeme agreeme 13.76 0.00% 850 No g to the No
ate and
er Power nt nt price agreeme
Develop services
nt
ment
Co.,
Ltd.
Benxi
Steel &
Iron
(Group) Execute
Sales of
Steel & Same Energy On Related accordin
goods
Iron controll & agreeme agreeme 50.3 0.00% 10,000 No g to the No
and
Process er Power nt nt price agreeme
services
and nt
Logistic
s Co.,
Ltd.
Benxi
Steel &
Iron
(Group) Execute
Sales of
Steel & Same On Related accordin
goods
Iron controll Products agreeme agreeme 0 0.00% No g to the Yes
and
Process er nt nt price agreeme
services
and nt
Logistic
s Co.,
Ltd.
Benxi Sales of Execute
Same On Related
Steel & goods accordin
controll Products agreeme agreeme 462.07 0.02% 18,000 No Yes
Iron and g to the
er nt nt price
(Group) services agreeme
29
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Machine nt
ry
Manufa
cture
Co.,
Ltd.
Benxi
Steel &
Iron
Execute
(Group) Sales of
Same Energy On Related accordin
Machine goods
controll & agreeme agreeme 791.36 0.04% No g to the No
ry and
er Power nt nt price agreeme
Manufa services
nt
cture
Co.,
Ltd.
Benxi
Raw
Steel &
material
Iron
& Execute
(Group) Sales of
Same supplem On Related accordin
Machine goods
controll entary agreeme agreeme 51.41 0.00% No g to the No
ry and
er material nt nt price agreeme
Manufa services
s& nt
cture
spare
Co.,
parts
Ltd.
Benxi
Steel &
Execute
Iron Sales of
Same Energy On Related accordin
(Group) goods
controll & agreeme agreeme 214.45 0.01% 30,000 No g to the No
Constru and
er Power nt nt price agreeme
ction services
nt
Co.,
Ltd.
Raw
Benxi
material
Steel &
& Execute
Iron Sales of
Same supplem On Related accordin
(Group) goods
controll entary agreeme agreeme 138.41 0.01% No g to the Yes
Constru and
er material nt nt price agreeme
ction services
s& nt
Co.,
spare
Ltd.
parts
30
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Benxi
Steel & Execute
Sales of
Iron Same Energy On Related accordin
goods 45,858.2
(Group) controll & agreeme agreeme 2.21% 100,000 No g to the No
and 1
Mining er Power nt nt price agreeme
services
Co., nt
Ltd.
Raw
Benxi material
Steel & & Execute
Sales of
Iron Same supplem On Related accordin
goods
(Group) controll entary agreeme agreeme 646.77 0.03% No g to the No
and
Mining er material nt nt price agreeme
services
Co., s& nt
Ltd. spare
parts
Benxi
Steel & Execute
Sales of
Iron Same On Related accordin
goods Freight
(Group) controll agreeme agreeme 407.23 0.02% No g to the No
and revenue
Mining er nt nt price agreeme
services
Co., nt
Ltd.
Benxi
Steel &
Iron
Execute
(Group) Sales of
Same Energy On Related accordin
Thermal goods
controll & agreeme agreeme 1,452.38 0.07% 15,000 No g to the No
Power and
er Power nt nt price agreeme
Develop services
nt
ment
Co.,
Ltd.
Benxi
Raw
Steel &
material
Iron
& Execute
(Group) Sales of
Same supplem On Related accordin
Thermal goods
controll entary agreeme agreeme 68.57 0.00% No g to the No
Power and
er material nt nt price agreeme
Develop services
s& nt
ment
spare
Co.,
parts
Ltd.
31
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Benxi
Steel &
Iron
Execute
(Group) Sales of
Same On Related accordin
Thermal goods Freight
controll agreeme agreeme 9.67 0.00% No g to the No
Power and revenue
er nt nt price agreeme
Develop services
nt
ment
Co.,
Ltd.
Benxi
Steel &
Iron
Execute
(Group) Sales of
Same Energy On Related accordin
Industri goods
controll & agreeme agreeme 405.31 0.02% 25,000 No g to the No
al and
er Power nt nt price agreeme
Develop services
nt
ment
Co.,
Ltd.
Benxi
Steel &
Iron
Execute
(Group) Sales of
Same On Related accordin
Industri goods
controll Products agreeme agreeme 12.69 0.00% No g to the Yes
al and
er nt nt price agreeme
Develop services
nt
ment
Co.,
Ltd.
Benxi
Raw
Steel &
material
Iron
& Execute
(Group) Sales of
Same supplem On Related accordin
Industri goods
controll entary agreeme agreeme 2,759.53 0.13% No g to the Yes
al and
er material nt nt price agreeme
Develop services
s& nt
ment
spare
Co.,
parts
Ltd.
Benxi Same Sales of Energy On Related Execute
Steel & controll goods & agreeme agreeme 8.3 0.00% 100 No accordin No
Iron er and Power nt nt price g to the
32
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
(Group) services agreeme
Informat nt
ion and
Automat
ic Tech
Co.,
Ltd.
Benxi
Steel &
Iron
Execute
(Group) Sales of
Same Energy On Related accordin
Constru goods
controll & agreeme agreeme 77.22 0.00% No g to the No
ction and
er Power nt nt price agreeme
and services
nt
Repairin
g Co.,
Ltd.
Benxi
Raw
Steel &
material
Iron
& Execute
(Group) Sales of
Same supplem On Related accordin
Constru goods
controll entary agreeme agreeme 9.84 0.00% 1,200 No g to the Yes
ction and
er material nt nt price agreeme
and services
s& nt
Repairin
spare
g Co.,
parts
Ltd.
Benxi
Steel &
Iron Execute
Sales of
(Group) Same Energy On Related accordin
goods
Metallur controll & agreeme agreeme 130.04 0.01% 12,000 No g to the No
and
gy er Power nt nt price agreeme
services
Residue nt
s Co.,
Ltd.
Benxi Raw
Steel & material Execute
Sales of
Iron Same & On Related accordin
goods
(Group) controll supplem agreeme agreeme 4,358.02 0.21% No g to the Yes
and
Metallur er entary nt nt price agreeme
services
gy material nt
Residue s&
33
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
s Co., spare
Ltd. parts
Benxi
Steel &
Iron Execute
Sales of
(Group) Same On Related accordin
goods Freight
Metallur controll agreeme agreeme 0.31 0.00% No g to the No
and revenue
gy er nt nt price agreeme
services
Residue nt
s Co.,
Ltd.
Benxi
Steel &
Iron Execute
Sales of
(Group) Same On Related accordin
goods
Metallur controll Products agreeme agreeme 712.63 0.03% No g to the No
and
gy er nt nt price agreeme
services
Residue nt
s Co.,
Ltd.
Benxi
Execute
Steel & Sales of
Parent Energy On Related accordin
Iron goods
Compan & agreeme agreeme 614.52 0.03% 12,000 No g to the No
(Group) and
y Power nt nt price agreeme
Co., services
nt
Ltd.
Raw
material
Benxi
& Execute
Steel & Sales of
Parent supplem On Related accordin
Iron goods
Compan entary agreeme agreeme 321.55 0.02% No g to the No
(Group) and
y material nt nt price agreeme
Co., services
s& nt
Ltd.
spare
parts
Benxi
New Execute
Sales of
Career Same Energy On Related accordin
goods
Develop controll & agreeme agreeme 18.6 0.00% 500 No g to the No
and
ment er Power nt nt price agreeme
services
Co., nt
Ltd.
34
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Dalian
Execute
Boluole Sales of
Same On Related accordin
Steel goods
controll Products agreeme agreeme 223.79 0.01% 1,000 No g to the Yes
Tube and
er nt nt price agreeme
Co., services
nt
Ltd.
Liaonin
g
Execute
Bengan Sales of
Same On Related accordin
g Steel goods
controll Products agreeme agreeme 46.04 0.00% 5,000 No g to the Yes
& Iron and
er nt nt price agreeme
Trading services
nt
Co.,
Ltd.
Benxi
Execute
Steel & Sales of
Same Energy On Related accordin
Iron goods
controll & agreeme agreeme 5.17 0.00% 50 No g to the No
(Group) and
er Power nt nt price agreeme
General services
nt
Hospital
Liaonin
g
Hengton
g
Execute
Metallur Sales of
Same Energy On Related accordin
gical goods
controll & agreeme agreeme 899.19 0.04% 12,000 No g to the Yes
Equipm and
er Power nt nt price agreeme
ent services
nt
Manufa
cture
Co.,
Ltd.
Liaonin
g Raw
Hengton material
g & Execute
Sales of
Metallur Same supplem On Related accordin
goods
gical controll entary agreeme agreeme 879.76 0.04% No g to the Yes
and
Equipm er material nt nt price agreeme
services
ent s& nt
Manufa spare
cture parts
Co.,
35
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Ltd.
Liaonin
g
Hengton
g
Execute
Metallur Sales of
Same On Related accordin
gical goods
controll Products agreeme agreeme 0 0.00% No g to the Yes
Equipm and
er nt nt price agreeme
ent services
nt
Manufa
cture
Co.,
Ltd.
Bengan Raw
g material
Cold-rol & Execute
Sales of
led Same supplem On Related accordin
goods
Stainles controll entary agreeme agreeme 0 0.00% 500 No g to the Yes
and
s Steel er material nt nt price agreeme
services
Dandon s& nt
g Co., spare
Ltd. parts
Bengan
g
Cold-rol Execute
Sales of
led Same On Related accordin
goods
Stainles controll Products agreeme agreeme 0 0.00% No g to the Yes
and
s Steel er nt nt price agreeme
services
Dandon nt
g Co.,
Ltd.
Suzhou
Execute
Bengan Sales of
Same On Related accordin
g goods
controll Products agreeme agreeme 13,623.1 0.66% 36,000 No g to the No
Industri and
er nt nt price agreeme
al Co., services
nt
Ltd.
Bengan Execute
Sales of
g Group Same Energy On Related accordin
goods
Finance controll & agreeme agreeme 0.75 0.00% 800 No g to the No
and
Co., er Power nt nt price agreeme
services
Ltd. nt
36
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Execute
Bengan Sales of
Energy On Related accordin
g Group Controll goods
& agreeme agreeme 7.63 0.00% 500 No g to the No
Co., er and
Power nt nt price agreeme
Ltd. services
nt
995,896. 2,522,60
Total -- -- -- -- -- -- -- --
06 0
Details of any sales return of a large
None
amount
Give the actual situation during the
reporting period where a forecast had
been made for the total amounts of
None
routine related-party transactions，by
type to occur in the current period(if
any)
Reason for any significant difference
between the transaction price and the
None
market price for reference (if
applicable)
2. Related transactions relevant to asset acquisition or sold
□ Applicable √ Not applicable
There was no related transaction relevant to asset acquisition or sold during the reporting period.
3. Related transactions relevant to joint investments
□ Applicable √ Not applicable
There was no related transaction relevant to joint investments during the reporting period.
4. Credits and liabilities with related parties
√ Applicable □ Not applicable
Whether there are any non-operating related credits and debts
□ Yes √ No
There were no non-operating related credits and debts during the reporting period.
5. Other significant related transactions
□ Applicable √ Not applicable
There was no other significant related transaction during the reporting period.
37
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
XIII. Illustrations of Non-Operating Occupation of Funds by the Controlling Shareholder
and Related Parties
□ Applicable √ Not applicable
There was no non-operating occupation of funds by the controlling shareholder and related parties
XIV. Major Contracts and Their Performance
1. Trusteeship, contracting and leasing
(1) Trusteeship
□ Applicable √ Not applicable
There was no trusteeship during the reporting period.
(2) Contracting
□ Applicable √ Not applicable
There was no contracting during the reporting period.
(3) Leasing
□ Applicable √ Not applicable
There was no leasing during the reporting period.
2. Guarantee
□ Applicable √ Not applicable
There was no guarantee during the reporting period.
4. Other Major Contracts
□ Applicable √ Not applicable
There was no other major contract during the reporting period.
XV. Social Responsibilities
1. Performing corporation social responsibility of targeted poverty alleviation
The company has not carried out targeted poverty alleviation work during the reporting period, and has no plan for follow-up targeted
poverty alleviation.
38
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
2. Major environmental protection situation
Whether the listed Company and its subsidiaries are among key pollution companies launched by Environmental Protection
Department
Yes
Emission
Name of main Number of Distribution standards
Name of the Mode of Emission Total
pollutants and sewage of sewage for Total Excess
company or sewage concentratio approved
characteristic emission emission pollutants emissions emissions
subsidiaries emission n emissions
pollutants points points implemente
d
Bengang Dongfeng
Continuo
Steel Plates COD 1 Plant of 38mg/L 50mg/L 2.11Ton 2.11Ton None
us
Co., Ltd. coking plant
Bengang Dongfeng
Ammonia Continuo
Steel Plates 1 Plant of 4.75mg/L 8mg/L 0.26Ton 0.26Ton None
nitrogen us
Co., Ltd. coking plant
Bengang Dongfeng
Volatile Continuo 0.038mg/m
Steel Plates 1 Plant of 0.3mg/L 0.002Ton 0.002Ton None
phenol us g/L
Co., Ltd. coking plant
Continuous Continuous
emission: emission:
Power Plant Gas
9#1#2#, Stove10mg
Continuous
21-26# /m3, coal
emission:
boiler fired30mg/
boiler
chimney, m3;coke
5-10mg/m3;
coking plant oven dust
coke
4-9# dust removal30
oven13-21
Continuo removal mg/m3;Sint
mg/m3;15
Bengang us and (crushing, ering
-32mg/m3;I
Steel Plates Dust intermitt 39 transporting desulfurizat 42064Ton 42064Ton None
ntermittent
Co., Ltd. ent and ion:50mg/
emission:
emission screening) , m3;
coke
5 furnace tail:30mg/
oven12-30
group sieve m3;Iron
mg/m3;steel
coke dust field
making6-19
removal, 25mg/m3;I
mg/m3boile
sintering ntermittent
r185mg/m3
desulfurizati emission:
on, tail coke
electrical oven50mg/
dust m3;steelma
39
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
removal, king20mg/
blast m3;boiler2
furnace out 00mg/m3
of the iron
field dust;
Intermittent
emission:
coking plant
6-9#, 4-5
furnace
group dust
removal
(loading
coal,
pushing
coal, and
drying out) ;
hot metal
pretreatmen
t and second
time dust
removal in
steelmaking
plant; raw
material
factory
boiler
Power Plant Gas
9#1#2#, Stove10-20 Gas
21-26# mg/m3;coke Stove100m
boiler oven g/m3, coal
chimney, loading fired200mg
coking plant coal, dry /m3;coke
6-9#, 4-5 quenching oven
Bengang Under furnace 28-90mg/m loading
Steel Plates SO2 organize 22 group dust 3，pushing coal, dry 8450Ton 8450Ton None
Co., Ltd. d removal coal quenching
(loading 19-32mg/m 100mg/m3;
coal, 3;Sintering sintering
pushing dust desulfurizat
coal, and removal35- ion:200mg/
drying out) 98mg/m3;b m3;boiler4
sintering oiler375mg/ 00mg/m3
desulfurizati m3
40
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
on raw
material
factory
boiler
Gas Stove
mg/m3, coal
Power Plant fired and Gas
9#1#2#, coal Stove100m
21-26# blending g/m3, coal
Bengang Under boiler fired fired200mg
Steel Plates NOx organize 8 chimney; 60-110mg/ /m3;sinteri 8450Ton 8450Ton None
Co., Ltd. d sintering m3;sinterin ng
machine g desulfurizat
desulfurizati desulfurizati ion
on on 300mg/m3
35-98mg/m
3
Construction and operation of pollution prevention facilities
In 2017, the Company’s subsidiary unit has constructed a total of 161 sets of environmental protection supporting facilities with the
main project, including main exhaust gas and dust removal facilities 148 units and sewage treatment facilities 13 sets. The Company
strictly implemented environmental protection three simultaneous systems, and synchronously operated and maintained with the
main project, to ensure that environmental protection facilities can achieve stable operation. Synchronous operation rate was 100%.
(1) Ecological environment: In the first half year of 2017, the Company carried out 15 greening project construction, including 8
public areas and 7sub-units, planted more than 1000 arbors, more than 4,000 shrubs piers, more than 3,000 square meters pattern
flowers, more than 25,000 square meters perennial flowers, more than 2000 square meters lawn, and migrated more than 200 arbors,.
(2) Prevention and control of pollution: the Company continued to strengthen the daily management of environmental protection
facilities and maintenance to ensure stable function. Through the daily environmental monitoring, implementation of environmental
protection self-management, strengthening the monitoring of pollutant emission and strengthening the management measures such as
assessment, the Company continuously maintained the pollutant emission stable standard.
(3) Fulfillment of environmental responsibility: in accordance with environmental laws and regulations, the Company strengthened
daily supervision and inspection and assessment to ensure that environmental protection facility and the main projects work
synchronously. Once leaking and exhaust emissions exceeding the standard identified, the Company would issue rectification notice
and punishment and require immediate rectification. The Company fulfilled the environmental responsibility well.
XVI. Other Major Issues
□ Applicable √ Not applicable
There was no need for illustrating other major issue.
XVII. Major Issues of Subsidiaries
□ Applicable √ Not applicable
41
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
VI. Status of Share Capital Changes and Shareholders
I. Share Capital Changes
1. Share capital changes
Unit: Share
Before the change Increase/decrease(+，-) After the Change
Issuing Capitalization
Bonus
Quantity Percentage of new of common Others Subtotal Quantity Percentage
shares
share reserve fund
II. Non-restricted
3,136,000,000 100.00% 3,136,000,000 100.00%
Shares
1. Common shares
2,736,000,000 87.24% 2,736,000,000 87.24%
in RMB
2. Foreign shares in
400,000,000 12.76% 400,000,000 12.76%
domestic market
III. Total shares 3,136,000,000 100.00% 3,136,000,000 100.00%
Causation of share capital changes
□ Applicable √ Not applicable
Approval of share capital changes
□ Applicable √ Not applicable
Status of registration process of transferred shares
□ Applicable √ Not applicable
Influences of share capital changes on financial indices such as basic earnings per share, diluted earnings per share, and net asset per
share attributed to common shareholders
□ Applicable √ Not applicable
Other information the Company deems necessary to be disclosed or required by the authority
□ Applicable √ Not applicable
2. Changes of Restricted Shares
□ Applicable √ Not applicable
II. Securities Issuance and Listing
□ Applicable √ Not applicable
42
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
III. Total Number of Shareholders and Shareholding
Unit: Share
The total number of
Total number of common preferred shareholders
shareholders at the end of the 59,424 voting rights restored at the end 0
reporting period of the reporting period (See
Notes 8)
Shareholding of shareholders holding more than 5% or top 10 shareholders
Number Quantity of pledged or frozen
Holding of shares Changes in Restricted Un-restricte shares
Name of the Nature of
Percentage held at reporting shares d shares
shareholder shareholder
(%) period-en period held held Status Quantity
d
Benxi Steel & Pledged 1,251,000,000
State-owned legal 2,442,316
Iron (Group) 77.88%
person ,069 Frozen 45,000,000
Co., Ltd.
Industrial and
Commercial
Bank of China
Limited-South
Others 0.31% 9,718,651
Big Data 100
Index Securities
Investment
Fund
Bank of
Communication
Limited-Chang
xin
Quantification Others 0.29% 9,088,658
Pioneer Mixed
Securities
Investment
Fund
BBH A/C
VANGUARD
EMERGING Overseas legal
0.26% 8,157,311
MARKETS person
STOCK
INDEX FUND
Domestic natural
Zhou Jie 0.17% 5,200,000
person
43
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
VANGUARD
TOTAL
Overseas legal
INTERNATIO 0.15% 4,606,141
person
NAL STOCK
INDEX FUND
Caitong Fund -
ICBC - Caitong
Others 0.15% 4,499,967
Securities Co.,
Ltd.
Southwest
Securities -
China
Everbright
Bank -
Southwest
Others 0.13% 4,099,964
Securities
Shuangxi
Xinguang Big 1
Collection Asset
Management
Plan
Haitong
International
Securities Overseas legal
0.12% 3,785,109
Company person
Limited-Accou
nt Client
Domestic natural
Chen Nengyi 0.12% 3,757,336
person
Strategy investors or general legal
person becomes top 10 shareholders
None
due to rights issued (if any ) (See
Notes 3)
Notes to relationship or ‘action in It is unknown to the Company whether there is any related connection or ‘Action in Concert’
concert’ among the top 10 as described by Rules of Information Disclosing Regarding Changing of Shareholding Status
shareholders. of Listed Companies existing among the above shareholders.
Shareholding of top 10 unrestricted shareholders
Category of shares
Un-restricted shares held at the end of the reporting
Name of the shareholder Category of
period Quantity
shares
Benxi Steel & Iron (Group) Co., 2,442,316,069 Common shares 2,442,316,069
44
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Ltd. in RMB
Industrial and Commercial Bank of
Common shares
China Limited-South Big Data 100 9,718,651 9,718,651
in RMB
Index Securities Investment Fund
Bank of Communication
Limited-Changxin Quantification Common shares
9,088,658 9,088,658
Pioneer Mixed Securities in RMB
Investment Fund
Foreign shares
BBH A/C VANGUARD
placed in
EMERGING MARKETS STOCK 8,157,311 8,157,311
domestic
INDEX FUND
exchange
Foreign shares
placed in
Zhou Jie 5,200,000 5,200,000
domestic
exchange
Foreign shares
VANGUARD TOTAL
placed in
INTERNATIONAL STOCK 4,606,141 4,606,141
domestic
INDEX FUND
exchange
Caitong Fund - ICBC - Caitong Common shares
4,499,967 4,499,967
Securities Co., Ltd. in RMB
Southwest Securities - China
Everbright Bank - Southwest Common shares
4,099,964 4,099,964
Securities Shuangxi Xinguang Big 1 in RMB
Collection Asset Management Plan
Foreign shares
Haitong International Securities placed in
3,785,109 3,785,109
Company Limited-Account Client domestic
exchange
Common shares
Chen Nengyi 3,757,336 3,757,336
in RMB
Benxi Steel & Iron (Group) Co., Ltd., the holding shareholder, has no relationship with any of
Notes to relationship or ‘action in the other shareholders among the top 10 shareholders, neither being regarded as
concert’ among the top 10 action-in-concert parties by the Information Disclosure Regulations for Change of
non-restricted shareholders, and Shareholding in PLC. The Company is not aware of any relationship among the other
among the top 10 non-restricted shareholders, neither being regarded as action-in-concert parties by the Information
shareholders and top 10 Disclosure Regulations for Change of Shareholding in PLC. The Company is not aware of any
shareholders relationship among the top 10 shareholders, neither being regarded as action-in-concert parties
by the Information Disclosure Regulations for Change of Shareholding in PLC.
Shareholders among the top 10 Chen Nengyi holds 3,757,336 shares of the company through investors' credit securities
45
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
participating in securities margin accounts.
trading (if any) (see Note 4)
Whether top 10 common shareholders and top 10 un-restricted common shareholders have a buy-back agreement
dealing in reporting period
□ Yes √ No
Top 10 common shareholders and top 10 un-restricted common shareholders had no buy-back agreement dealing
in reporting period.
IV. Changes of Controlling Shareholders and Substantial Controller during the Reporting Period
Change of holding shareholder
□ Applicable √ Not applicable
There was no change of holding shareholder in the report period.
Change of substantial controller
□ Applicable √ Not applicable
There was no change of substantial controller in the report period.
46
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
VII. Status of Preferred Shares
□ Applicable √ Not applicable
There was no Preferred Shares during the reporting period.
47
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
VIII. Status of Directors, Supervisors, Senior Executives
I. Change in Shares held by Directors, Supervisors and Senior Executives
□ Applicable √ Not applicable
There was no change in shares held by Directors, Supervisors and Senior Executives. Please refer to Annual Report 2016 for details.
II. Change in Directors, Supervisors and Senior Executives
□ Applicable √ Not applicable
There was no change in Directors, Supervisors and Senior Executives. Please refer to Annual Report 2016 for details.
48
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
IX. Relevant Information about Corporate Bonds
Whether there exists any un-matured corporate bonds public issued and listed on the Stock Exchange or any matured corporate bonds
which the listed company failed to pay in full at the approval date of the semi-annual report
Yes
I. Basic information of corporate bonds
Bond short Bond balance
Bond name Bond code Issuance date Maturity date Interest rate Servicing way
name RMB 10,000
Interest is paid
Corporate
15 Benxi Steel 9 February 9 February annually, and
Bond 2015 112236 150,000 5.17%
01 2015 2018 principal is
(Phase I)
paid when due.
Corporate bonds listed or
Shenzhen Stock Exchange
trading places
Investors appropriate
The above bond transactions have been implemented by investors appropriate management
management
The interests of Bengang Steel Plates Co., Ltd. Corporate Bonds 2015 (Phase I) of the period from
5 February 2016 to 4 February 2017 were paid on 6 February 2017, as each bond would gain
Interest payment status of the
RMB 5.17 (tax inclusive). The date of record of interest payment was 3 February 2017, thus any
Company Bond during the
investor who bought and held the bonds before or on the date of 3 February 2017 enjoyed the right
reporting period
to receive the interest payments. The investors who sold out the bonds on the date of 3 February
2017 should not enjoy the interests.
If the corporate bonds are
attached to special clauses such
as option clause and
exchangeable clause to the
Not applicable
issuer or investors, please
specify the implementation
status of the corresponding
clauses. (If applicable)
II. Bond Trustee and the Credit Rating Agency
Bond trustee:
ESSENCE 12 F, Guo Tou Contact
Name Office address Contact Tian Zhu 010-83321197
Securities Financial Building, 2 number
49
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Fu Cheng Men North
Street, Xi Cheng
District, Beijing
The credit rating agencies which follow and rate the corporate bond during the reporting period:
12/F, PICC Building, No.2 Jian Guo Men
Office
Name United Ratings Co., Ltd. Wai Street, Chaoyang District, Beijing.
address
If during the reporting period, the bond
trustee, credit rating agency employed by
the company have changed, reasons for the Not applicable
change, performing procedures, relevant
influence on investors, etc. (If applicable)
III. The Usage of Raised Funds from Corporate Bonds
After deducting issuance costs, all raised funds are used for debt restructuring
The usage of raised funds from Corporate
and repayment. The amount of repayment of bank loans was RMB 1.5 billion.
bonds and procedures of performance
As of December 31, 2016, all the raised funds have been used up.
Balance (RMB 10,000) 0
Operation of raised funds special account Normal
Whether the usage of the raised funds
corresponded to the purposes of promise, Yes
use plans, or other agreements
IV. Corporate Bond Rating
(1) On 26 May 2017, United Rating Agency exercised rating towards the Corporate Bond 2015 (Phase I) and maintained the
long-term rating of the main body of Bengang Steel Plates Co. Ltd at “AA+” and adjusted rating prospect as “stable”, while adjusting
the debt credit rating of the Corporate Bond 2015 (Phase I) at “AAA+” . Bengang Steel Plates Co. Ltd conducted the disclosure
about tracking rating report on http://www.cninfo.com/cn/ on 1 June 2017.
(2) During the reporting period, United Rating Agency did not exercise irregular tracking rating about the Company’s bonds.
(3) During the reporting period, the Company did not launch any other bonds or securities financing tools and there was no difference
of the assessment results between different rating agencies.
V. Corporate Bond Credit Increasing Mechanism, Debt Repayment Plans and Other Debt
Repayment Security Measures
1. Debt repayment plans
According to ‘Prospectus of Public Issuance of Corporate Bond 2015 (Phase I)’ launched on February 3, 2015, debt repayment plans
are as followings:
(1) The value date of the bond is February 5, 2015. In the duration of the bond, the interest will be paid once a year, and the interest
payment date is February 5 in three consecutive years, ranging from 2016 to 2018 (subject to postponement in case of statutory
50
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
public holiday and weekend, similarly hereinafter) .
(2) The maturity date is February 5, 2018. The principal and the interest thereof will be paid at the maturity date.
(3) Interest will be paid through registration agency and related agencies. The details will strictly follow related regulations and will
be disclosed on the designated public media by the issuer.
(4) According to national tax legislation and regulation, the relevant taxes emerged in investment on the bond should be paid by
investors.
2. Debt repayment security measures
According to ‘Prospectus of Public Issuance of Corporate Bond 2015 (Phase I)’ launched on February 3, 2015, debt repayment
security measures are as following:
In order to fully and effectively preserve bondholders’ benefit, the Company made a series plan towards repaying the debt in time
and in full amount, including set up a special project group, formulated ‘Meeting Rules for bondholders’, formulated and strictly
executed fund management plan, fully played the bond trustee’s roles and strictly carried out the disclosure responsibility.
(1) Set up a special project group;
(2) Formulate ‘Meeting Rules for Bondholders’;
(3) Bengang Group Co., Ltd. acted as the company's bond guarantor;
(4) Formulate and strictly execute fund management plan;
(5) Protect bondholders’ benefits;
(6) Strictly carry out the disclosure responsibility;
(7) Issuer’s Board of Director’s commitment.
During the reporting period, the Company follows the debt repayment plan and security mechanism disclosed in ‘Prospectus of
Public Issuance of Corporate Bond 2015 (Phase I) ’. The Company set up a special project group, formulated ‘Meeting Rules for
Bondholders’, applied ESSENCE Securities as trustee, and Bengang Group Co., Ltd. as the company's bond guarantor, formulated
and strictly executed fund management plan that reasonably distribute fund to ensure the interest was paid in time. On 24 January
2017, the Company disclosed ‘Interest Repayment Notice’ and completed the interest repayment on 6 February 2017.
During the reporting period, the Company had no significant changes that would influence the in time repayment of bond and there is
no differences situation with relevant commission.
During the reporting period, there was no change to Corporate Bond Credit Increasing Mechanism, Debt Repayment Plans and Other
Debt Repayment Security Measures. Bengang Group Co., Ltd. was the guarantor for the Company’s bond. As of 30 June 2017,
Bengang Group Co., Ltd.’s net assets is RMB 35.874 billion, asset-liability ratio is 74.99%, ROE is 0.08%, liquidity ratio is 0.43,
quick ratio is 0.25 (above financial data is not audited) . Bengang Group Co., Ltd. is rated AAA by China Cheng Xin International
Credit Rating Co. Ltd.
VI. Bondholders’ Meeting in the Reporting Period
During the reporting period, the Company did not hold bondholders’ meeting.
VII. Duty fulfillment of Bond Trustee in the Reporting Period
During the reporting 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:
(1) Constantly pay attention to the credit status, execution of credit enhancement measurements and credit repayment safeguard
measures of the guarantor and company;
51
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
(2) Supervise the utilization of raised funds in the company in the duration of bond;
(3) Exercise a well-rounded investigation into and pay constant attention to the company’s debt repayment ability and credit
enhancement measures, and provide at least one trustee affair report for the market each year;
(4) Constantly supervise the company’s performance of information disclosure obligation in the duration of the bond.
The trustee hasn’t been confronted with conflict of interest in performing its responsibilities.
The trustee has announced the trustee affair report 2016 on 2 June 2017.
VIII. Major Accounting Data and Financial Indicators at the end of this and Previous
Reporting Period (or this Reporting Period and Same period in previous year )
Unit: Yuan 10,000
Increase or decrease at the end
At the end of this reporting At the end of previous reporting
Items of this reporting period over
period period
the previous year
Liquidity ratio 76.00% 74.56% 1.44%
Asset-liability ratio 74.78% 75.51% -0.73%
Quick ratio 48.52% 47.04% 1.48%
Increase or decrease in this
This reporting period Same period in previous year reporting period over the
previous year
EBITDA interest coverage ratio 3.24 3.51 -7.69%
Loan payment rate 100.00% 100.00% 0.00%
Rate of Interest payment 100.00% 100.00% 0.00%
The main reasons that the accounting data and financial indicators change more than 30%
□ Applicable √ Not applicable
IX. Overdue Outstanding Debts of the Company
□ Applicable √ Not applicable
There was no Overdue Outstanding Debts of the Company.
X. Interest Payment for Other Bonds and Debt Financing Tool in the Reporting Period
During the reporting period, the Company did not launch any other bonds or securities financing tools or pay interest for other bonds
and securities financing tools.
XI. Usage of Bank Credit Obtained and Repayment of Bank Loans in the Reporting Period
During the reporting period, the total bank line of credit of the Company was RMB 35.07 billion, and RMB 32.28 billion was used,
leaving unused line of credit of RMB 2.79 billion. The total loan amount at the beginning was RMB 22.649 billion, and had
increased RMB 13.553 billion in this period. The loan repaid in this period was RMB 91.42 billion, leaving a balance of RMB 27.06
52
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
billion.
XII. Performance of Agreements or Commitments Related to Corporate Bond Prospectus
in the Reporting Period
The Company strictly observed the Bond Trustee Agreement and regulations as described in different bond terms and conditions.
The Company fulfilled its responsibilities according to Prospectus. There was no situation that the Company harmed investors’
benefits.
XIII. Major Events Occurred in the Reporting Period
On 26 May 2017, United Rating Agency exercised rating towards the Corporate Bond 2015 (Phase I) and maintained the long-term
rating of the main body of Bengang Steel Plates Co. Ltd at “AA+” and adjusted rating prospect as “stable”, while adjusting the debt
credit rating of the Corporate Bond 2015 (Phase I) at “AAA+” . Bengang Steel Plates Co. Ltd conducted the disclosure about
tracking rating report on http://www.cninfo.com/cn/ on 1 June 2017.
XIV. Whether There Exist Any Guarantors of the Corporate Bond
√ Yes □ No
Whether the guarantor of the corporate bond is a legal person or other organizations
√ Yes □ No
Whether the Company disclosed the guarantor’s financial statements including statement of financial position, statement of
comprehensive income, statement of changes in equity, statement of cash flows, and notes to the financial statements in 2 months
since the end of the first half of each fiscal year.
√ Yes □ No
53
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
X. Financial Report
I. Audit report
Whether the semi-annual report is audited
□ Yes √ No
The semi-annual report is not audited.
II. Financial Statements
Statement in Notes are carried in RMB Yuan
1. CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Prepared by: Bengang Steel Plates Co., Ltd.
Unit: Yuan
Items Ending balance Beginning balance
Current assets:
Cash at bank and on hand 12,240,579,151.57 12,931,912,017.84
Settlement provisions
Capital lent
Financial assets at fair value
through profit or loss
Derivative financial assets
Notes receivable 3,486,513,747.73 2,030,681,138.03
Accounts receivable 536,054,820.21 623,865,427.25
Prepayments 658,157,852.16 493,839,659.44
Premium receivable
Reinsurance accounts receivable
Receivable deposit for reinsurance
contract
Interests receivable 2,663,285.16 4,208,818.85
Dividends receivable
Other receivables 165,294,616.70 117,909,972.49
Redemptory financial assets for
sale
54
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Inventories 9,834,703,845.66 9,782,173,936.74
Assets classified as held for sale
Non-current assets due within one
year
Other current assets 280,833,153.36 513,398,815.83
Total current assets 27,204,800,472.55 26,497,989,786.47
Non-current assets:
Loan and advances issued
Available-for-sale financial assets 5,856,585.63 14,856,585.63
Held-to-maturity investment
Long-term receivables
Long-term equity investments
Investment properties
Fixed assets 19,753,582,768.45 20,688,468,637.44
Construction in progress 7,030,049,975.69 6,210,673,674.11
Construction materials 4,558,925.80 7,783,370.29
Disposal of fixed assets
Productive biological assets
Oil and gas assets
Intangible assets 256,855,104.56 259,837,410.93
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets 375,792,716.94 476,101,254.04
Other non-current assets
Total non-current assets 27,426,696,077.07 27,657,720,932.44
Total assets 54,631,496,549.62 54,155,710,718.91
Current Liabilities:
Short-term loans 22,787,674,400.00 18,762,472,779.48
Loan from central bank
Absorbed deposit and interbank
deposit
Loan from other financial
institutions
Financial liabilities at fair value
55
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
through profit or loss
Advance from customers
Notes payable 2,654,713,650.65 6,372,173,897.13
Accounts payable 5,379,872,618.65 5,680,244,661.52
Advance from customers 3,290,002,245.71 3,679,477,129.80
Financial assets sold for
repurchase
Handling charges and commission
payable
Employee benefits payable 41,263,867.18 24,063,493.70
Current tax liabilities 19,670,459.30 45,771,585.46
Interests payable 43,877,149.04 75,115,265.66
Dividends payable
Other payables 469,499,960.08 460,009,213.78
Reinsurance accounts payable
Provision for insurance contract
Receipt from vicariously traded
securities
Receipt from vicariously
underwriting securities
Liabilities held for sale
Non-current liabilities due within
1,110,787,748.00 437,669,535.66
one year
Other current liabilities
Total current liabilities 35,797,362,098.61 35,536,997,562.19
Non-current liabilities:
Long-term loans 3,161,338,135.87 3,448,931,721.62
Bonds payable 1,496,550,521.55 1,494,825,782.32
Including: Preferred stock
Perpetual bond
Long-term payables
Long-term employee benefits
payable
Special accounts payable
Estimated liabilities
Deferred income 396,052,000.00 410,399,000.00
56
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 5,053,940,657.42 5,354,156,503.94
Total liabilities 40,851,302,756.03 40,891,154,066.13
Shareholders’ equity:
Share capital 3,136,000,000.00 3,136,000,000.00
Other equity instruments
Including: Preferred stock
Perpetual bond
Capital reserves 9,114,845,542.05 9,114,845,542.05
Less: treasury shares
Other comprehensive income
Special reserves 10,656,973.74 372,721.86
Surplus reserves 961,105,529.85 961,105,529.85
General risk reserve
Undistributed profits 26,666,410.96 -496,969,242.61
Total equity attributable to equity
13,249,274,456.60 12,715,354,551.15
holders of the parent company
Non-controlling interests 530,919,336.99 549,202,101.63
Total shareholder’s equity 13,780,193,793.59 13,264,556,652.78
Total liabilities and shareholder’s equity 54,631,496,549.62 54,155,710,718.91
Legal Representative: Wang Shu Person in charge of accounting: Han Ge Accounting Dept. Leader: Wang Shaoyu
2. BALANCE SHEET OF THE PARENT COMPANY
Unit: Yuan
Items Ending balance Beginning balance
Current assets:
Cash at bank and on hand 12,007,831,826.87 12,402,995,087.03
Financial assets at fair value
through profit or loss
Derivative financial assets
Notes receivable 3,364,985,137.62 1,870,384,367.64
Accounts receivable 491,938,145.44 455,070,302.00
Prepayments 657,548,793.61 487,869,713.72
Interests receivable 2,663,285.16 4,208,818.85
57
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Dividends receivable
Other receivables 176,028,682.36 210,089,804.88
Inventories 7,999,016,015.18 8,308,291,029.07
Assets classified as held for sale
Non-current assets due within one
year
Other current assets 207,402,337.05 431,675,085.33
Total current assets 24,907,414,223.29 24,170,584,208.52
Non-current assets:
Available-for-sale financial assets 3,888,980.00 12,888,980.00
Held-to-maturity investment
Long-term receivables
Long-term equity investments 1,751,981,902.16 1,700,981,902.16
Investment properties
Fixed assets 17,358,400,004.89 18,125,714,092.15
Construction in progress 7,010,468,962.64 6,196,524,880.06
Construction materials 4,134,139.48 4,134,139.52
Disposal of fixed assets
Productive biological assets
Oil and gas assets
Intangible assets 153,735,383.89 155,388,452.53
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets 278,388,067.92 378,696,605.02
Other non-current assets
Total non-current assets 26,560,997,440.98 26,574,329,051.44
Total assets 51,468,411,664.27 50,744,913,259.96
Current Liabilities:
Short-term loans 21,016,634,400.00 17,376,963,500.00
Financial liabilities at fair value
through profit or loss
Advance from customers
Notes payable 2,652,021,225.65 5,768,523,196.16
Accounts payable 5,603,674,065.16 5,939,417,729.46
58
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Advance from customers 3,281,133,671.61 3,671,944,099.35
Employee benefits payable 40,881,869.18 22,386,057.59
Current tax liabilities 7,746,972.51 28,902,954.65
Interests payable 31,334,821.13 70,109,821.13
Dividends payable
Other payables 275,216,874.86 289,522,026.53
Liabilities held for sale
Non-current liabilities due within
1,110,787,748.00 437,669,535.66
one year
Other current liabilities
Total current liabilities 34,019,431,648.10 33,605,438,920.53
Non-current liabilities:
Long-term loans 3,161,338,135.87 3,448,931,721.62
Bonds payable 1,496,550,521.55 1,494,825,782.32
Including: Preferred stock
Perpetual bond
Long-term payables
Long-term employee benefits
payable
Special accounts payable
Estimated liabilities
Deferred income 396,052,000.00 410,399,000.00
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 5,053,940,657.42 5,354,156,503.94
Total liabilities 39,073,372,305.52 38,959,595,424.47
Shareholders’ equity:
Share capital 3,136,000,000.00 3,136,000,000.00
Other equity instruments
Including: Preferred stock
Perpetual bond
Capital reserves 8,694,693,859.93 8,694,693,859.93
Less: treasury shares
Other comprehensive income
Special reserves 8,125,511.20 230,735.89
59
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Surplus reserves 961,105,529.85 961,105,529.85
Undistributed profits -404,885,542.23 -1,006,712,290.18
Total shareholder’s equity 12,395,039,358.75 11,785,317,835.49
Total liabilities and shareholder’s equity 51,468,411,664.27 50,744,913,259.96
Legal Representative: Wang Shu Person in charge of accounting: Han Ge Accounting Dept. Leader: Wang Shaoyu
3. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unit: Yuan
Items January to June 2017 January to June 2016
1. Total operating income 20,736,486,903.74 12,629,584,569.35
Including: Operating income 20,736,486,903.74 12,629,584,569.35
Interest income
Premium earned
Income from handling
charges and commission
2. Total operating cost 20,109,129,759.95 12,307,317,804.75
Including: Operating cost 18,690,665,966.11 10,914,182,302.04
Interest cost
Expenditure for handling
charges and commission
Surrender value
Net expenditure for
compensation
Net provision for insurance
contract appropriated
Bonus payment for policy
Reinsurance premium
Taxes and surcharges 133,756,731.07 26,332,894.76
Selling and distribution
587,632,707.43 430,061,063.14
expenses
General and administrative
358,951,405.08 351,954,718.48
expenses
Financial expenses 381,513,404.80 586,667,825.19
Asset impairment loss -43,390,454.54 -1,880,998.86
Add: Gains from the change in fair
value ("-" for loss)
60
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Income on investment ("-" for
3,294,593.14
loss)
Including: Income from
associates and joint ventures
Exchange Income ("-" for loss)
Other Income
3. Operating profit ("-" for loss) 630,651,736.93 322,266,764.60
Add: Non-operating income 21,014,488.58 24,196,669.55
Including: Gain on disposal of
3,015,294.00 2,120,458.89
non-current assets
Less: Non-operating expenses 4,593,420.30 105,474.99
Including: Loss on disposal of
4,593,420.30 105,474.99
non-current assets
4. Total profit ("-" for loss) 647,072,805.21 346,357,959.16
Less: Income tax expenses 117,105,061.16 140,062,221.29
5. Net Profit ("-" for loss) 529,967,744.05 206,295,737.87
Attributable to: Owners of parent
523,635,653.57 182,538,176.32
company
Non-controlling shareholders 6,332,090.48 23,757,561.55
6. Other comprehensive income after tax
Other comprehensive income
attributable to owners of parent company
after tax
1) Other comprehensive income
unable to be reclassified into profit and
loss afterwards
(1) .Change of net liabilities
or net assets through re-measuring
defined benefit plan
(2) .Share of other
comprehensive income of investee not to
be classified into profit or loss afterwards
under equity method
2) Other comprehensive income to
be reclassified into profit and loss
afterwards
(1) .Share of other
comprehensive income of investee to be
61
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
classified into profit or loss afterwards
under equity method
(2). Gains and losses on
re-measuring available-for-sale financial
assets
(3) .Gains and losses
resulting from reclassification of held-to
maturity investment to financial assets
held-for sale
(4) .Effective portion of
gains or losses from cash flow hedging
(5) .Gains and losses resultin
g from translating the foreign currency
financial statements
(6) .Others
Other comprehensive income
attributable to non-controlling
shareholders after tax
7. Total comprehensive income 529,967,744.05 206,295,737.87
Total comprehensive income
523,635,653.57 182,538,176.32
attributable to owners of parent company
Total comprehensive income
attributable to non-controlling 6,332,090.48 23,757,561.55
shareholders
8. Earnings per share:
1) Basic earnings per share 0.167 0.058
2) Diluted earnings per share 0.167 0.058
The current business combination under common control, the net profits of the combined party before achieved: Yuan, net profit of
previous period of the combined party realized: Yuan.
Legal Representative: Wang Shu Person in charge of accounting: Han Ge Accounting Dept. Leader: Wang Shaoyu
4. INCOME STATEMENT OF THE PARENT COMPANY
Unit: Yuan
Items January to June 2017 January to June 2016
1. Turnover 21,197,516,779.20 13,185,388,447.19
Less: Operating cost 19,482,976,074.32 11,729,886,784.21
Taxes and surcharges 116,783,416.00 14,639,973.93
Selling and distribution 373,519,186.39 352,259,509.33
62
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
expenses
General and administrative
336,370,276.02 321,474,092.99
expenses
Financial expenses 350,175,885.42 555,023,839.47
Asset impairment loss -43,390,454.54 -1,880,998.86
Add: Gains from the change in fair
value ("-" for loss)
Income on investment ("-" for
105,369,227.90 13,713,328.45
loss)
Including: Income from
associates and joint ventures
Other Income
2. Operating profit ("-" for loss) 686,451,623.49 227,698,574.57
Add: Non-operating income 20,277,081.86 23,562,540.98
Including: Gain on disposal of
3,015,294.00 2,050,505.76
non-current assets
Less: Non-operating expenses 4,593,420.30 105,474.99
Including: Loss on disposal of
4,593,420.30 105,474.99
non-current assets
3. Total profit ("-" for loss) 702,135,285.05 251,155,640.56
Less: Income tax expenses 100,308,537.10 138,090,659.07
4. Net Profit ("-" for loss) 601,826,747.95 113,064,981.49
5. Other comprehensive income after
tax
1) Other comprehensive income
unable to be reclassified into profit and
loss afterwards
(1) .Change of net
liabilities or net assets through
re-measuring defined benefit plan
(2) .Share of other
comprehensive income of investee not
to be classified into profit or loss
afterwards under equity method
2) Other comprehensive income to
be reclassified into profit and loss
afterwards
(1) .Share of other
63
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
comprehensive income of investee to be
classified into profit or loss afterwards
under equity method
(2) Gains and losses on
re-measuring available-for-sale
financial assets
(3) .Gains and losses
resulting from reclassification of held-to
maturity investment to financial assets
held-for sale
(4) .Effective portion of
gains or losses from cash flow hedging
(5) .Gains and losses resulti
ng from translating the foreign currency
financial statements
(6) .Others
6. Total comprehensive income 601,826,747.95 113,064,981.49
7. Earnings per share:
1) Basic earnings per share
2) Diluted earnings per share
Legal Representative: Wang Shu Person in charge of accounting: Han Ge Accounting Dept. Leader: Wang Shaoyu
5. CONSOLIDATED STATEMENT OF CASH FLOWS
Unit: Yuan
Items January to June 2017 January to June 2016
1. Cash flow from operating activities:
Cash received from sale of goods
14,489,666,407.59 10,026,046,529.17
or rendering of services
Net increase of customers’ deposit
and interbank deposit
Net increase of loan from central
bank
Net increase of loans from other
financial institutions
Cash received for premium of
original insurance contract
Net cash received for reinsurance
business
64
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Net increase of deposit and
investment of the insured
Net increase of Financial assets at
fair value through profit or loss
Cash from receiving interest,
handling charge and commission
Net increase of loans from other
financial institutions
Net increase of fund for buy-back
business
Tax rebate received 71,132,309.30 303,389,091.42
Other cash received relating to
87,817,078.61 84,327,996.29
operating activities
Subtotal of cash inflow received from
14,648,615,795.50 10,413,763,616.88
operation activities
Cash paid for goods and services 17,237,734,129.30 6,825,224,385.05
Net increase of customer’s loan
and advances
Net increase of deposit in central
bank and interbank deposit
Cash for payment of compensation
for original insurance contract
Cash for payment of interest,
handling charge and commission
Cash for payment of policy bonus
Cash paid to and on behalf of
719,101,828.61 643,200,672.87
employees
Cash paid for all types of taxes 390,701,219.38 154,701,105.71
Other cash paid relating to
348,384,302.93 399,860,089.73
operating activities
Subtotal of cash outflow received from
18,695,921,480.22 8,022,986,253.36
operation activities
Net cash flows generated from
-4,047,305,684.72 2,390,777,363.52
operating activities
2. Cash flows from investing activities:
Cash received from return on
424,000,000.00
investments
Cash received from distribution of 3,294,593.14
65
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
dividends or profit
Net cash received from disposal of
fixed assets, intangible assets and other 2,405,531.00
long-term assets
Net cash received from disposal of
subsidiary and other operating units
Other cash paid relating to
investing activities
Subtotal of cash inflow received from
427,294,593.14 2,405,531.00
investing activities
Cash paid for acquisition of fixed
assets, intangible assets and other 702,058,422.96 758,159,102.38
long-term assets
Cash paid for acquisition of
180,000,000.00 113,000,000.00
investments
Net increase of mortgage loan
Net cash received from subsidiary
and other operating unit
Other cash paid relating to
investing activities
Subtotal of cash outflows from
882,058,422.96 871,159,102.38
investing activities
The net cash flow generated by
-454,763,829.82 -868,753,571.38
investment activities
3. Cash flows from financing activities:
Proceeds from investment
Including: Proceeds from
investment of non-controlling
shareholders of subsidiary
Proceeds from borrowings 10,419,164,500.00 7,222,865,800.00
Cash received from bond issuance
Other proceeds relating to
210,000,000.00
financing activities
Subtotal cash inflow received from
10,419,164,500.00 7,432,865,800.00
financing activities
Cash repayments of borrowings 6,099,082,442.74 6,003,720,086.94
Cash payments for distribution of
565,025,996.70 573,974,920.33
dividends, profit or interest expenses
66
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Including: Cash paid to
non-controlling shareholders as
dividend and profit by subsidiaries
Other cash payments relating to
financing activities
Subtotal of cash outflows from
6,664,108,439.44 6,577,695,007.27
financing activities
The net cash flow generated by
3,755,056,060.56 855,170,792.73
financing activities
4. Effect of foreign exchange rate
-41,586,403.20 388,468,098.61
changes on cash and cash equivalents
5. Net increase in cash and cash
-788,599,857.18 2,765,662,683.48
equivalents
Add: Cash and cash equivalents at
12,273,574,488.67 4,612,782,772.98
the beginning of the period
6. Cash and cash equivalents at the
11,484,974,631.49 7,378,445,456.46
ending of the period
Legal Representative: Wang Shu Person in charge of accounting: Han Ge Accounting Dept. Leader: Wang Shaoyu
6. CASH FLOW STATEMENT OF THE PARENT COMPANY
Unit: Yuan
Items January to June 2017 January to June 2016
1.Cash flow from operating activities:
Cash received from sale of goods
14,377,855,065.89 9,828,128,086.69
or rendering of services
Tax rebate received 21,102,552.86 299,232,274.50
Other cash received relating to
80,547,620.06 71,902,496.61
operating activities
Subtotal of cash inflow received from
14,479,505,238.81 10,199,262,857.80
operation activities
Cash paid for goods and services 17,094,207,253.57 6,988,799,423.39
Cash paid to and on behalf of
672,852,272.11 598,176,442.20
employees
Cash paid for all types of taxes 330,314,831.68 51,750,618.52
Other cash paid relating to
244,216,504.53 277,308,179.29
operating activities
Subtotal of cash outflow received from
18,341,590,861.89 7,916,034,663.40
operation activities
67
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Net cash flows generated from
-3,862,085,623.08 2,283,228,194.40
operating activities
2. Cash flows from investing activities:
Cash received from return on
424,000,000.00
investments
Cash received from distribution of
105,353,447.08
dividends or profit
Net cash received from disposal of
fixed assets, intangible assets and other 2,368,625.00
long-term assets
Net cash received from disposal of
subsidiary and other operating units
Other cash paid relating to
investing activities
Subtotal of cash inflow received from
529,353,447.08 2,368,625.00
investing activities
Cash paid for acquisition of fixed
assets, intangible assets and other 687,313,444.96 746,341,472.97
long-term assets
Cash paid for acquisition of
180,000,000.00 113,000,000.00
investments
Net cash received from subsidiary
and other operating unit
Other cash paid relating to
investing activities
Subtotal of cash outflows from
867,313,444.96 859,341,472.97
investing activities
The net cash flow generated by
-337,959,997.88 -856,972,847.97
investment activities
3. Cash flows from financing activities:
Proceeds from investment
Proceeds from borrowings 9,396,164,500.00 6,782,865,800.00
Cash received from bond issuance
Other proceeds relating to
210,000,000.00
financing activities
Subtotal cash inflow received from
9,396,164,500.00 6,992,865,800.00
financing activities
Cash repayments of borrowings 5,345,526,396.17 5,551,474,882.41
68
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Cash payments for distribution of
399,928,132.12 541,489,070.30
dividends, profit or interest expenses
Other cash payments relating to
financing activities
Subtotal of cash outflows from
5,745,454,528.29 6,092,963,952.71
financing activities
The net cash flow generated by
3,650,709,971.71 899,901,847.29
financing activities
4. Effect of foreign exchange rate
-41,635,090.04 388,459,851.48
changes on cash and cash equivalents
5. Net increase in cash and cash
-590,970,739.29 2,714,617,045.20
equivalents
Add: Cash and cash equivalents at
11,876,536,613.66 4,489,630,951.08
the beginning of the period
6. Cash and cash equivalents at the
11,285,565,874.37 7,204,247,996.28
ending of the period
Legal Representative: Wang Shu Person in charge of accounting: Han Ge Accounting Dept. Leader: Wang Shaoyu
7. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Unit: Yuan
January to June 2017
Owner’s equity attributable to parent company
Other equity Non-co Total
Items Other
instruments Less: General Undistri ntrollin shareho
Share Capital compre Special Surplus
treasury risk buted g lder’s
Prefer Perpet
capital Other reserves hensive reserves reserves
ence ual shares reserve profits interests equity
s income
shares bond
1. Ending 3,136, 9,114,8 -496,96 13,264,
372,721 961,105 549,202
balance of 000,00 45,542. 9,242.6 556,652
.86 ,529.85 ,101.63
last year 0.00 05 1 .78
Add: Change
of accounting
policies
Correction of
errors for previous
period
Business
consolidation
69
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
under common
control
Others
2. Beginning 3,136, 9,114,8 -496,96 13,264,
372,721 961,105 549,202
balance of 000,00 45,542. 9,242.6 556,652
.86 ,529.85 ,101.63
current year 0.00 05 1 .78
3. Changes in
current year 10,284, 523,635 -18,282, 515,637
(“-” for 251.88 ,653.57 764.64 ,140.81
decrease )
1) Total
523,635 6,332,0 529,967
comprehensive
,653.57 90.48 ,744.05
income
2) Capital increase
9,003,8 9,003,8
and decrease by
15.84 15.84
shareholders
(1) Common share
invested by
shareholders
(2) Capital input
by the holder of
other equity
instruments
(3) Share-based
payment
attributable to
owners’ equity
(4) Others
3) Profit -34,024, -34,024,
distribution 878.25 878.25
(1) Appropriation
to surplus reserves
(2) Appropriation
to general risk
reserve
(3) Profit
-34,024, -34,024,
distribution to
878.25 878.25
shareholders
(4) Others
4) Transfers within
70
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
shareholders’
equity
(1) Capital
reserves
transferred into
paid-in capital (or
stock)
(2) Surplus
reserves
transferred into
paid-in capital (or
stock)
(3) Surplus
reserves to recover
loss
(4) Others
10,284, 406,207 10,690,
5) Special reserves
251.88 .29 459.17
(1) Provision of 19,733, 406,207 20,139,
special reserves 398.02 .29 605.31
(2) Use of special 9,449,1 9,449,1
reserves 46.14 46.14
6) Others
3,136, 9,114,8 13,780,
4. Ending balance 10,656, 961,105 26,666, 530,919
000,00 45,542. 193,793
of current year 973.74 ,529.85 410.96 ,336.99
0.00 05 .59
Unit: Yuan
January to June 2016
Owner’s equity attributable to parent company
Non-co
Other equity Total
Other ntrollin
Items instruments shareho
Less: General Undistri
Share Capital compre Special Surplus g
Prefer Perpet treasury risk buted lder’s
capital Other reserves hensive reserves reserves interest
ence ual shares reserve profits equity
s income s
shares bond
1. Ending 3,136, 9,114,8 -1,278,2 12,439,
393,372 961,105 504,993
balance of 000,00 45,542. 44,071. 093,421
.05 ,529.85 ,049.45
last year 0.00 05 93 .47
Add: Change
of accounting
71
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
policies
Correction of
errors for previous
period
Business
consolidation
under common
control
Others
2. Beginning 3,136, 9,114,8 -1,278,2 12,439,
393,372 961,105 504,993
balance of 000,00 45,542. 44,071. 093,421
.05 ,529.85 ,049.45
current year 0.00 05 93 .47
3. Changes in
current year -20,650. 781,274 44,209, 825,463
(“-” for 19 ,829.32 052.18 ,231.31
decrease )
1) Total
781,274 44,204, 825,479
comprehensive
,829.32 577.33 ,406.65
income
2) Capital increase
and decrease by
shareholders
(1) Common share
invested by
shareholders
(2) Capital input
by the holder of
other equity
instruments
(3) Share-based
payment
attributable to
owners’ equity
(4) Others
3) Profit
distribution
(1) Appropriation
to surplus reserves
(2) Appropriation
72
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
to general risk
reserve
(3) Profit
distribution to
shareholders
(4) Others
4) Transfers within
shareholders’
equity
(1) Capital
reserves
transferred into
paid-in capital (or
stock)
(2) Surplus
reserves
transferred into
paid-in capital (or
stock)
(3) Surplus
reserves to recover
loss
(4) Others
-20,650. 4,474.8 -16,175.
5) Special reserves
19 5 34
(1) Provision of 39,766, 4,474.8 39,771,
special reserves 855.73 5 330.58
(2) Use of special 39,787, 39,787,
reserves 505.92 505.92
6) Others
3,136, 9,114,8 -496,96 13,264,
4. Ending balance 372,721 961,105 549,202
000,00 45,542. 9,242.6 556,652
of current year .86 ,529.85 ,101.63
0.00 05 1 .78
Legal Representative: Wang Shu Person in charge of accounting: Han Ge Accounting Dept. Leader: Wang Shaoyu
8. STATEMENT OF CHANGE IN OWNER’S EQUITY OF THE PARENT COMPANY
Unit: Yuan
January to June 2017
Items
Share Other equity instruments Capital Less: Other Special Surplus Undistri Total
73
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
capital Prefere reserves treasury comprehe reserves reserves buted sharehold
Perpetu
nce Others shares nsive profits er’s
al bond
shares income equity
1. Ending -1,006,7
3,136,00 8,694,693 230,735.8 961,105,5 11,785,31
balance of 12,290.
0,000.00 ,859.93 9 29.85 7,835.49
last year 18
Add: Change
of accounting
policies
Correction of
errors for previous
period
Others
2. Beginning -1,006,7
3,136,00 8,694,693 230,735.8 961,105,5 11,785,31
balance of 12,290.
0,000.00 ,859.93 9 29.85 7,835.49
current year 18
3. Changes in
current year 7,894,775 601,826 609,721,5
(“-” for .31 ,747.95 23.26
decrease )
1) Total
601,826 601,826,7
comprehensive
,747.95 47.95
income
2) Capital increase
and decrease by
shareholders
(1) Common share
invested by
shareholders
(2) Capital input
by the holder of
other equity
instruments
(3) Share-based
payment
attributable to
owners’ equity
(4) Others
3) Profit
74
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
distribution
(1) Appropriation
to surplus reserves
2．Profit
distribution to
shareholders
3．Others
4) Transfers within
shareholders’
equity
(1) Capital
reserves
transferred into
paid-in capital (or
stock)
(2) Surplus
reserves
transferred into
paid-in capital (or
stock)
(3) Surplus
reserves to recover
loss
(4) Others
7,894,775 7,894,775
5) Special reserves
.31 .31
(1) Provision of 17,253,64 17,253,64
special reserves 4.64 4.64
(2) Use of special 9,358,869 9,358,869
reserves .33 .33
6) Others
-404,88
4. Ending balance 3,136,00 8,694,693 8,125,511 961,105,5 12,395,03
5,542.2
of current year 0,000.00 ,859.93 .20 29.85 9,358.75
3
Unit: Yuan
January to June 2016
Other equity instruments Less: Other Undistri Total
Items Share Capital Special Surplus
Prefere Perpetu treasury comprehe buted sharehold
capital Others reserves reserves reserves
nce al bond shares nsive profits er’s
75
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
shares income equity
1. Ending -1,684,4
3,136,00 8,694,693 393,372.0 961,105,5 11,107,73
balance of 56,000.
0,000.00 ,859.93 5 29.85 6,760.94
last year 89
Add: Change
of accounting
policies
Correction of
errors for previous
period
Others
2. Beginning -1,684,4
3,136,00 8,694,693 393,372.0 961,105,5 11,107,73
balance of 56,000.
0,000.00 ,859.93 5 29.85 6,760.94
current year 89
3. Changes in
current year -162,636. 677,743 677,581,0
(“-” for 16 ,710.71 74.55
decrease )
1) Total
677,743 677,743,7
comprehensive
,710.71 10.71
income
2) Capital increase
and decrease by
shareholders
(1) Common share
invested by
shareholders
(2) Capital input
by the holder of
other equity
instruments
(3) Share-based
payment
attributable to
owners’ equity
(4) Others
3) Profit
distribution
(1) Appropriation
76
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
to surplus reserves
2．Profit
distribution to
shareholders
3．Others
4) Transfers within
shareholders’
equity
(1) Capital
reserves
transferred into
paid-in capital (or
stock)
(2) Surplus
reserves
transferred into
paid-in capital (or
stock)
(3) Surplus
reserves to recover
loss
(4) Others
-162,636. -162,636.
5) Special reserves
16 16
(1) Provision of 34,079,63 34,079,63
special reserves 0.37 0.37
(2) Use of special 34,242,26 34,242,26
reserves 6.53 6.53
6) Others
-1,006,7
4. Ending balance 3,136,00 8,694,693 230,735.8 961,105,5 11,785,31
12,290.
of current year 0,000.00 ,859.93 9 29.85 7,835.49
18
Legal Representative: Wang Shu Person in charge of accounting: Han Ge Accounting Dept. Leader: Wang Shaoyu
III. Basic Information of the Company
Bengang Steel Plates Co., Ltd. (hereinafter referred to as “the Company”) , as approved in Liao-Zheng (1997)
No. 57 by Liaoning People’s Government on 27 March 1997, was incorporated as a joint stock limited
company through public share offer of domestic listed foreign currency denominated shares (B shares) in the
People’s Republic of China (the “PRC”) on 27 June 1997 by Benxi Steel and Iron (Group) Co., Ltd.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
(“Bengang Group”) , through reorganization of operations, assets and liabilities of its plants, namely, Steel
Smelting Plant, Primary Rolling Plant and Continuous Hot Rolling Plant.
As approved by China Securities Regulatory Commission (hereinafter referred to as “the CSRC”), the
Company issued 400,000,000 B-shares at HKD2.38 each in Shenzhen Stock Exchange on 10 June 1997. On 3
November 1997, the Company issued another 120,000,000 A-shares (Renminbi common Shares) at RMB5.40
each, and listed in Shenzhen Stock Exchange since 15 January 1998. The capital shares were totaled to
1,136,000,000 shares including 616,000,000 shares held by the promoter.
On 14 March 2006, according to the resolutions of the Shareholders’ Meeting regarding share equity
relocation, the Share Equity Relocation Scheme, Response to Bengang Steel Plate Co., Ltd. about Share
Equity Relocation issued by Liaoning Provincial Government State-owned Asset Administrative Committee,
Bengang Group – the only holder of non-negotiable state-owned legal person shares paid the consideration to
the current shareholders to obtain the current option for the 40,800,000 shares of the total 616,000,000 shares
it was holding. Shareholding positions have been registered with China Securities Depository & Clearing
Corporation Ltd. Shenzhen Office. However, the total amount of capital shares of Bengang Steel Plates Co.,
Ltd. was not changed through the share equity relocation action.
According to the approval document “Zheng-Jian-Gong-Si-Zi [2006] No. 126” by China Securities
Regulatory Commission on 30 June 2006, the Company was approved to place 2 billion Renminbi common
shares particularly to Bengang Group and the proceeds would be used to purchase the related assets of the
Group. On the same day, Bengang Group received circular Zheng-Jian-Gong-Si-Zi [2006] No. 127 issued by
China Securities Regulatory Committee, and were exempted for the liability of undertaking the purchase offer.
The liability was caused by subscribing of the 2 billion new shares and the total shareholding was thus
increased to 2.5752 billion shares (accounting for 82.12% of the total capital shares of the Company). On 28
August 2006, as approved by China Securities Depository & Clearing Corporation Ltd. Shenzhen Office, the
registration and conditional placing procedures of the 2 billion new shares were completed. On 28 September
2006, the privately placed shares were approved by Shenzhen Stock Exchange to be placed in the stock
market. The new shares were placed in the market with face value of RMB1.00 per share and the placing
price was RMB4.6733 per share. The newly placed shares were restricted to be sold in 36 months when they
were registered to the account of Bengang Group.
Up to 31 December 2016, the capital shares of Bengang Steel Plates Co., Ltd were amounted to
3,136,000,000 shares. The unified social credit code was 91210000242690243E. The registered address is
16th Renmin Road, Pingshan District, Benxi, Liaoning Province. The registered capital is RMB
3,136,000,000. The legal representative is Wang Shu.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
The parent company of Bengang Steel Plates Co., Ltd is Benxi Steel and Iron (Group) Co., Ltd. and the actual
controller is the State-owned Assets Supervision and Administration Commission of the State Council of
Liaoning province.
Bengang Steel Plates Co., Ltd. belongs to ferrous metal smelting and rolling processing industry, and is
mainly involved in producing and trading of ferrous metal products.
The financial statements have been approved for reporting by the board of directors of the Company on 23
August 2017.
As at 30 June 2017, subsidiaries included in the Company’s consolidated financial statements are as follows:
Name of the subsidiaries
Guangzhou Bengang Steel & Iron Trading Co., Ltd.
Shanghai Bengang Metallurgy Science and Technology Co., Ltd.
Bengang Steel Plate Liaoyang Orel Ball Co., Ltd.
Dalian Benruitong Automobile Material Technologies Co., Ltd.
Changchun Bengang Steel & Iron Sales Co., Ltd.
Harbin Bengang Economic and Trading Co., Ltd.
Nanjing Bengang Steel Material Sales Ltd.
Wuxi Bengang Steel & Iron Sales Co., Ltd.
Xiamen Bengang Steel & Iron Sales Co., Ltd.
Yantai Bengang Steel & Iron Sales Co., Ltd.
Tianjin Bengang Steel & Iron Trading Co., Ltd.
Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd.
Benxi Bengang Steel Sales Co., Ltd
Shenyang Bengang Metallurgical Science and Technology Co., Ltd.
Bengang Baojin (Shenyang) Automobile New Material Technology Co., Ltd.
Bengang Baojin (Shenyang) Automobile New Material Technology Co., Ltd. is a new subsidy included in the
Company’s consolidated financial statements.
IV. Basis of preparation
1. Basis of preparation
The financial statements have been prepared on the going concern basis of actual trading and events in
accordance with “Accounting Standards for Business Enterprises – Basic Standard” and relevant specific
standards, application materials, interpretations (together hereinafter referred to as “Accounting Standards for
Business Enterprises”) issued by the Ministry of Finance, and “Information Disclosure Rules for Companies
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
of securities for public issuance No. 15 – General Regulations for Financial Statements” issued by the China
Securities Regulatory Commission.
2. Going concern
The Company is operating normally and in a good condition, and thus has the capability to continue to
operate in the next twelve months from the end of reporting period
V. Significant accounting policies and accounting estimates
The following disclosed content covers the detailed accounting policies and accounting estimates that are
adopted by the Company according to the actual features of production or operation.
1. Statement of compliance with China Accounting Standards for Business Enterprises
The financial statements present truly and completely the financial position, operation results and cash flows
of the Company during the reporting period in accordance with China Accounting Standards for Business
Enterprises.
2. Accounting year
The Accounting year is from 1 January to 31 December.
3. Operating period
The operating period is twelve months.
4. Functional currency
The Company’s functional currency is RMB.
5. The accounting treatment for Business combination under/now under common control
Business consolidation under common control: The assets and liabilities that the Company acquired in a
business combination shall be measured on the basis of their carrying amount of aquiree’s assets, liabilities
(as well as the goodwill arising from the business combination) in the consolidated financial statement of the
ultimate controller on the combining date.
As for the balance between the carrying amount of the net assets obtained by the Company and the carrying
amount of the consideration paid by it (or the total par value of the shares issued), capital reserve needs to be
adjusted. If the capital reserve is not sufficient, any excess shall be adjusted against retained earnings.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Business combination involving entities now 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. Consolidation of Financial Statements
1. Scope of consolidation
The scope of consolidation of consolidated financial statements is determined based on control. All the
subsidies (including separable sections of the investees controlled by the Company) have been consolidated
into the scope of consolidation for this period ended.
2. Procedure of consolidation
The consolidated financial statements shall be presented by the parent based on the financial statements of the
parent and its subsidiaries, and using other related information. When preparing consolidated financial
statements, the parent shall consider the entire group as an accounting entity, adopt uniform accounting
policies and apply the requirements of Accounting Standard for Business Enterprises related to recognition,
measurement and presentation. The consolidated financial statements shall reflect the overall financial
position, operating results and cash flows of the group.
The accounting policy and accounting period of the subsidiaries within the consolidation scope shall be in
accordance with those of the Company. If not, it is necessary to make the adjustment according to the
Company’s accounting policies and accounting period when preparing the consolidated financial statements.
For subsidiaries through acquisition that are now under common control, the financial statements are adjusted
according to fair value of identifiable net assets on the acquisition date.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
For subsidiaries through acquisition that are under common control, the assets, liabilities (as well as the
goodwill arising from purchasing the subsidiary by the ultimate controller) are adjusted according to book
value of net assets in the financial statements of the ultimate controller.
The owners’ interests, profit or loss, and comprehensive income of the subsidiary attributable to the
non-controlling shareholders shall be presented separately in the shareholders’ equity of the consolidated
balance sheet and under the item of net profit of the consolidated statement of comprehensive income and
under the item of total comprehensive income. Where losses assumed by the minority exceed the minority’s
interests in the beginning equity of a subsidiary, the excess shall be charged against the minority’s interests.
(1) 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 Company’s consolidated statement of
comprehensive income. The cash flow of the subsidiaries from the acquisition date to the end of the reporting
period is included in the Company’s consolidated statement of cash flows. And meanwhile the Company shall
adjust the relevant items of the comparative financial statements as if the reporting entity for the purpose of
consolidation has been in existence since the date the ultimate controlling party first obtained control.
When the Company becomes capable of exercising control over an investee under common control due to
additional investment or other reasons, Adjustment shall be made as if the reporting entity after the
combination has been in existence since the date the ultimate controlling party first obtained control. The
investment income recognized between date of previously obtaining equity investment and the date the
acquiree and acquirer are under common control, which is later, and the combining date, other comprehensive
income and other changes of net assets arising from the equity investment previously-held before obtaining
the control the acquiree shall be adjusted against the prior retained earnings of the comparative financial
statements and the current profit or loss respectively.
If it is now under common control, the Company shall not adjust the beginning balance in the consolidated
statement of financial position when preparing consolidated statement of financial position. The revenue,
expenses and profits of the subsidiaries from the acquisition date to the end of the reporting period are
included in the parent company’s consolidated statement of comprehensive income. The cash flow of the
subsidiaries from the acquisition date to the end of the reporting period is included in the Company’s
consolidated statement of cash flows.
When the Company becomes capable of exercising control over an investee now under common control due
to additional investment or other reasons, the acquirer shall re-measure its previously held equity interest in
82
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
the acquiree to its fair value at the acquisition date. The difference between the fair value and the carrying
amount shall be recognized as investment income for the period when the acquisition takes place. When the
previously-held equity investment is accounted for under the equity method, any other comprehensive income
previously recognized in relation to the acquiree’s equity changes shall be transferred to profit or loss for the
current period when the acquisition takes place. Other comprehensive income arising from
re-measurement 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 Company’s
consolidated statement of comprehensive income. The cash flow of the subsidiaries from the beginning of the
reporting period to disposal date is included in the Company’s consolidated statement of cash flows.
When the Company loses control over an investee due to partial disposal or other reasons, the acquirer shall
re-measure the remaining equity interests in the acquiree to its fair value at the acquisition date. The
difference, between sums of consideration received for disposal equity shares and fair value of the remaining
shares, and sums of share of net assets of the subsidiary calculated continuously from the acquisition date or
the combination date based on the previous shareholding proportion and goodwill, shall be recognized as
investment income for the period when the Company loses control over acquiree. When the previously-held
equity investment is accounted for under the equity method, any other comprehensive income previously
recognized in relation to the acquiree’s equity changes, and other equity changes rather than changes from net
profit, other comprehensive income and profit distribution, shall be transferred to investment income for the
current period when the Company loses control over acquiree. Other comprehensive income arising from
re-measurement of defined benefit plan is excluded. When the Company loses control over a subsidiary due
to the increase of capital from other investors and thus the shareholding ratio of the Company declines,
accounting treatment shall be in accordance with the above-mentioned principles
② Disposing 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:
Arrangements are entered into at the same time or in contemplation of each other;
Arrangements work together to achieve an overall commercial effect;
The occurrence of one arrangement is dependent on the occurrence of at least one other arrangement; and
83
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
One arrangement considered on its own is not economically justified, but it is economically justified when
considered together with other arrangements.
If each of the multiple transactions forms part of a bundled transaction which eventually results in loss of
control of the subsidiary, these multiple transactions shall be accounted for as a single transaction. In the
consolidated financial statements, the difference between the consideration received and the corresponding
proportion of the subsidiary’s net assets in each transaction prior to the loss of control shall be recognized in
other comprehensive income and transferred to the profit or loss when the Company eventually loses control
of the subsidiary.
If each of the multiple transactions which eventually results in loss of control of the subsidiary do not form
part of a bundled transaction, apply the treatment of disposing partial long-term equity investments in a
subsidiary without loss of control prior to the loss of control. After the loss of control, apply the treatment of
disposing the subsidiary in common cases.
(3) Acquiring the subsidiary’s equity interest held by non-controlling shareholders
Where the Company has acquired a subsidiary’s equity interest held by non-controlling shareholders, the
difference between the increase in the cost of long-term investments as a result of acquisition of
non-controlling interests and the share of net assets of the subsidiary calculated continuously from the
acquisition date or the combination date based on the new shareholding proportion shall be adjusted to the
capital reserve( capital premium or share premium) in the consolidated financial statements. If the balance of
the capital reserve is not sufficient, any excess shall be adjusted against retained earnings.
(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.
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;
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
(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 of cash and cash equivalents
For the purpose of preparing the statement of cash flows, the term “cash” refers to the cash on hand and the
unrestricted deposit. And the term “cash equivalents” refers to short-term (maturing within three months from
acquisition) and highly liquid investments that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of change in value.
9. Foreign currency transaction and translation of foreign currency financial statements
1. Foreign currency transaction
Foreign currency transactions are translated into RMB at the current rate at the day of transactions.
The foreign currency monetary items shall be translated at the spot exchange rate on the balance sheet date.
The balance of exchange arising from the difference between the spot exchange rate on the balance sheet date
and the spot exchange rate at the time of initial recognition or prior to the balance sheet date, except those
arising from the raising of special foreign debt for the purchase or construction of capitalizable assets thus
shall be capitalized according to the borrowing costs capitalization principle, shall be recorded into the profits
and losses at the current period. 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
85
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
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. Classification 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
(1) The financial assets (liabilities) at fair value through profit or loss
The financial assets (financial liabilities) at fair value through profit or loss are recognized initially at fair
value (minus cash dividends declared but not received or bond interest matured but not drawn yet). The
relevant transaction cost is recognized in current profit and loss when occurred.
The cash dividends or interest are recognized as investment income when the Company receives such
financial assets. At the balance sheet date, the Company recognizes the fair value changes in current profit
and loss.
The Company recognizes the difference between initial recognition and fair value of the financial assets as
investment income when disposing the financial assets and at the same time adjusts the fair value changes in
current profit and loss.
(2) Held-to-maturity investment
The Held-to-maturity investments are recognized initially at fair value (minus bond interest matured but not
drawn yet) plus any related transaction cost.
The held-to-maturity investments are measured at amortized cost using the effective interest rate. The interest
income is recognized as investment income. The effective interest will be determined at the initial recognition
and will not be changed in the holding period or within a shorter applicable period.
When disposing the held-to-maturity investment, the difference between the investing proceeds and the
carrying value is recognized as investment income.
(3) Receivables
86
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Receivables from selling products and rendering services or receivable of other company not including the
receivables with quoted price in the active market (including: accounts receivable, other receivables, notes
receivable, prepayments, long-term receivables) are measured at contract price; if the receivables is of
financing nature, it shall be recognized at the present value initially.
When disposing the receivables, the difference between the proceeds and the carrying value is recognized in
current profit and loss.
(4) Available-for-sale financial assets
Available-for-sale financial assets are initially recorded at the sum of fair values (deducting cash dividends
that have been declared but not distributed and bond interests that have matured but not been drawn) and
transaction costs when acquired.
The Company recognizes the interest or cash dividends as investment income. At each balance sheet date,
available-for-sale financial assets are measured at fair value and the fair value changes are recognized in the
capital reserve - other capital reserve.
The difference between the proceeds of the disposal and the carrying value 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. Determination and measurement of financial assets transfer
Where the Company has transferred nearly all of the risks and rewards related to the ownership of the
financial asset to the transferee, it shall 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 Company shall follow the principle of the substance over
form. Transfer of an entire financial asset can be divided into partial financial assets transfer and entire
financial asset transfer. If the transfer of an entire financial asset satisfies the conditions for de-recognition,
the difference between the amounts of the following 2 items shall be recorded in the profits and losses of the
current period:
(1) The book value of the transferred financial asset; and
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
(2) The sum of consideration received from the transfer, and the accumulative amount of the changes of the
fair value originally recorded in the owners' equities (in the event that the financial asset involved in the
transfer is a financial asset Available-for-sale).
If the transfer of partial financial asset satisfies the conditions to derecognize, the entire book value of the
transferred financial asset shall, between the portion whose recognition has been stopped and the portion
whose recognition has not been stopped (under such circumstance, the service asset retained shall be deemed
as a portion of financial asset whose recognition has not been stopped) , be apportioned according to their
respective relative fair value, and the difference between the amounts of the following 2 items shall be
included into the profits and losses of the current period :
(1) The book value of the portion whose recognition has been stopped; and
(2) The sum of consideration of the portion whose recognition has been stopped, and the portion of the
accumulative amount of the changes in the fair value originally recorded in the owner's equities which is
corresponding to the portion whose recognition has been stopped (in the event that the financial asset
involved in the transfer is a financial asset Available-for-sale) .
If the transfer of financial assets does not satisfy the conditions to stop the recognition, it shall continue to be
recognized as financial assets and the consideration received shall be recognized as financial liabilities.
4. Recognition of termination of financial liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in part may the recognition
of the financial liability be terminated in all or partly.
Where the Company (debtor) enters into an agreement with a creditor so as to substitute the existing financial
liabilities by way of any new financial liability, and if the contractual stipulations regarding the new financial
liability is substantially different from that regarding the existing financial liability, it shall terminate the
recognition of the existing financial liability, and shall at the same time recognize the new financial liability.
Where the Company 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) .
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Where the Company buys back part of its financial liabilities, it shall distribute, on the date of repurchase, the
carrying amount of the whole financial liabilities in light of the comparatively fair value of the part that
continues to be recognized and the part 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.
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
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The impairment of the held-to-maturity investment can be measured at reference to the measurement of the
impairment of accounts receivables.
11. Receivables
(1) The recognition and provision for bad debts for the individually significant receivables
The recognition standard of bad debts provision for the Individually significant receivables refer to accounts receivable
individually significant receivables over RMB10 million or other receivables over RMB 5 million.
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
The provision for bad debts for the individually significant
between the present value of the future cash flows and the book
receivables
value of receivables shall be recognized as bad debt provision
and shall be recorded into the profits and losses at the current
period.
(2) The recognition and provision for bad debts for the receivables in portfolio
Portfolio Recognition and provision for bad debts for portfolio
Insignificant amount of receivables and unadjusted individual
Aging analysis method
receivables
Aging analysis method for bad debts provision:
√ Applicable □ Not applicable
Bad debts ratio for Bad debts ratio for
Aging
accounts receivable other receivables
1-2 years 5.00% 5.00%
2-3 years 20.00% 20.00%
Over 3 years 100.00% 100.00%
Percentage of balance method for bad debts provisions:
□ Applicable √ Not applicable
Other methods for bad debts provision:
□ Applicable √ Not applicable
(3) Insignificant individual amounts of accounts receivable that recognize bad debts individually
Accounts receivable amount is proved to be unrecoverable with
Reasons for individual recognition and provision of bad debts
conclusive evidence.
If conclusive evidence shows the possibility of recovering the
Method of bad debts recognition and provision
amount is small, recognize bad debts individually as if the
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amount is unrecoverable.
12. Inventories
Whether the Company needs to obey the disclosure requirement of specific industry
No
1. Inventory classification
Inventories include material in transit, raw material, low-valued consumables, work in process, finished goods,
materials for consigned processing, etc.
2. Valuation method for inventory dispatched
The weighted average method is used to confirm the actual cost of the inventories dispatched.
3. The basis for confirming the net realizable value of inventories and the methods to make provision
for the inventories impairment loss
The net realizable value of inventories (finished products, stock commodity, material, etc.) held for direct
selling in the daily business activity shall be calculated by deducting the estimated sale expense and relevant
taxes from the estimated sale price of inventories.
The net realizable value of inventories for further processing in the daily business activity shall be calculated
by deducting the estimated cost of completion, estimated sale expense and relevant taxes from the estimated
sale price of inventories.
The net realizable value of inventories held for the execution of sales contracts or labor contracts shall be
calculated on the ground of the contract price. If 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. For the
inventories related to the series of products manufactured and sold in the same area, and of which the final use
or purpose is identical or similar thereto, and if it is difficult to measure them by separating them from other
items, the provision for loss on decline in value of inventories shall be made on a combination basis.
Unless clear evidence shows that the market price is exceptionally fluctuating, the net realizable value of
inventory is based on the market price at the balance sheet date.
The net realizable value of inventory at the year-end is based on the market price at the balance sheet date.
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4. Inventory system
The Company uses perpetual inventory system.
5. Amortization of low-valued consumables and packing materials
(1) Low-valued consumables shall be amortized in full amount on issuance.
(2) Packing materials shall be amortized in full amount on issuance
13. Assets classified as held for sale
The Company shall recognize components or non-current assets as held for sale when the following
conditions are satisfied simultaneously:
(1) This component can be sold immediately based only on usual terms of selling such components in current
situation.
(2) The Company has adopted a resolution on disposal of the component or non-current asset, and has been
approved by the general meeting of shareholders or the corresponding authority if required to be approved by
the shareholders by the regulation.
(3) The Company has signed an irrevocable transfer agreement with the transferee.
(4) The transfer will be completed within one year.
14. Long-term equity investments
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 from business acquisition
For a business combination involving enterprises under common control, if the consideration of the
combination is satisfied by paying cash, transfer of non-cash assets or assumption of liabilities and issue of
equity securities, the initial investment cost of the long-term equity investment shall be the absorbing party’s
share of the carrying amount of the owner’s equity of the party being absorbed in the consolidated financial
statements of the ultimate controlling party at combination date.
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When an investor becomes capable of exercising control over an investee under common control due to
additional investment or other reasons, the initial investment cost shall be the absorbing party’s share of the
carrying amount of the owner’s equity of the party being absorbed in the consolidated financial statements of
the ultimate controlling party at combination date.
The difference between the initial investment cost and the carrying amount of the previously-held equity
investment, together with the additional investment cost for new shares at combination date, shall be adjusted
to the capital reserve. If the balance of capital reserve is not sufficient, any excess shall be adjusted to retained
earnings.
When an investor becomes capable of exercising control over an investee now under common control due to
additional investment or other reasons, the investor shall change to the cost method and use the carrying
amount of the cost method and use the carrying amount of the previously-held equity investment, together
with the additional investment cost, as the initial investment cost under the cost method.
(2) The initial cost of the long-term equity investment other than from business acquisition
The initial cost of a long-term equity investment obtained by making payment in cash shall be the purchase
cost which is actually paid.
The initial cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the
fair value of the equity securities issued.
The initial cost of a long-term equity investment of an investor shall be the value stipulated in the investment
contract or agreement (minus cash dividend or profit declared but not paid) except the unfair value stipulated
in the contract or agreement.
If the exchange of non-monetary assets is commercial in nature and the fair values of both the assets received
and surrendered can be reliably measured, the fair value of the assets surrendered shall be used as the basis for
determining the cost of the assets received, unless there is any exact evidence showing that the fair value of
the assets received is more reliable. Where any non-monetary assets transaction does not meet the conditions
as prescribed above, the carrying value and relevant payable taxes of the assets surrendered shall be the initial
cost of the assets received.
The initial cost of a long-term equity investment obtained by debt restructuring shall be ascertained on the
basis of fair values.
3. Subsequent measurement and profit or loss recognition
(1) Cost method
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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 investor’s interest in
the fair values of an investee’s identifiable net assets at the acquisition date, no adjustment shall be made to
the initial investment cost. Where the initial cost is less than the investor’s interest in the fair values of the
investee’s identifiable net assets at the acquisition date, the difference shall be credited to profit or loss for the
current period, and the cost of the long-term equity investment shall be adjusted accordingly.
The Company shall recognize its share of the investee’s net profits or losses, as well as its share of the
investee’s other comprehensive income, as investment income or losses and other comprehensive income, and
adjust the carrying amount of the investment accordingly. The carrying amount of the investment shall be
reduced by the portion of any profit distributions or cash dividends declared by the investee that is attributable
to the investor. The investor’s share of the investee’s owners’ equity changes, other than those arising from the
investee’s net profit or loss, other comprehensive income or profit distribution, and the carrying amount of the
long-term equity investment shall be adjusted accordingly.
The investor shall recognize its share of the investee’s net profits or losses after making appropriate
adjustments based on the fair values of the investee’s 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 investor’s equity interest in the investee, based on which
investment income or losses shall be recognized. Any losses resulting from transactions between the investor
and investee which are attributable to asset impairment shall be recognized in full.
If the transaction of investment or sale of assets among the Company and associate and joint venture and the
assets is a business, it shall apply the treatment mentioned in Note 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
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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 re-measurement of defined benefit plan is excluded.
When an investor can no longer exercise joint control of or significant influence over an investee due to
partial disposal of equity investment or other reasons, the remaining equity investment shall be accounted for
in accordance with “Accounting Standard for Business Enterprises No. 22-Financial instruments:
recognition and measurement”. The difference between the fair value and the carrying amount at the date of
the loss of join control or significant influence shall be charged to profit or loss for the current period. When
the previously-held equity investment is accounted for under the equity method, any other comprehensive
income previously recognized shall be accounted for on the same basis as would have been required if the
investee had directly disposed of the related assets or liabilities for the current period upon discontinuation of
the equity method.
Those owner's equity recognized other than the change of net profits or loss, other comprehensive income,
profit distribution of the invested entity shall be transferred into profit or loss of current period in full when
the Company cease to adopt the equity method.
When the Company can no longer exercise control over an investee due to partial disposal of equity
investment or 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
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and Measurement”, and the difference between the fair value and carrying amount at the date of the loss of
control shall be charged to profit or loss for the current period.
When the equity investment disposed is acquired through business combination due to additional investment
or other reasons, in stand-alone financial statement, the remaining equity investment shall adopt cost method
or equity method, any other comprehensive income and other owner’s interests previously recognized of the
previously-held equity investment under the equity method shall be transferred proportionally.
For those remaining equity investment accounted for in accordance with “Accounting Standard for Business
Enterprises No.22-Financial instruments: Recognition and Measurement” after disposal, other comprehensive
income and other owner’s interests previously recognized shall be transferred to profit or loss in full.
15. Investment properties
Investment properties measurement method:
Cost Method
Depreciation and amortization method
The term "investment properties" refers to the real estate held for generating rent and/or capital appreciation.
The investment properties include:
(1) The land use right which has already been rented;
(2) The land use right which is held and prepared for transfer after appreciation; and
(3) The building which has already been rented (including buildings self-constructed or developed for rent
after completion or buildings being built or developed for future rent) .
The investment properties shall be measured at 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) Recognition of Fixed assets
The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows:
(1) They are held for the sake of producing commodities, rendering labor service, renting or business
management; and
(2) Their useful life is in excess of one fiscal year.
No fixed asset may be recognized unless it simultaneously meets the conditions as follows:
(1) The economic benefits related to the fixed asset are likely to flow into the enterprise; and
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(2) The cost of the fixed asset can be measured reliably.
(2) Fixed assets depreciation
Category Fixed assets depreciation Depreciation Period Residual Value Rate Depreciation Rate
Plants and Buildings Straight line method 8-40 years 0% 2.50%-12.50%
Machinery Straight line method 4-18 years 3% 5.39%-24.25%
Transportation and other
Straight line method 5-18 years 3% 5.39%-19.40%
equipment
(3) Recognition criteria for fixed asset leased in by financial leasing and its valuation
Where a lease satisfies one or more of the following criteria, it shall be recognized as a financial leasing:
(1) The ownership of the leased asset is transferred to the lessee when the term of lease expires;
(2) The lessee has the option to buy the leased asset at a price which is expected to be far lower than the fair
value of the leased asset at the date when the option becomes exercisable;
(3) The lease term covers the major part of the use life of the leased asset; and
(4) The present value of the minimum lease payments on the lease beginning date amounts to substantially all
of the fair value of the leased asset on the lease beginning date.
On the lease beginning date, the Company shall record the lower one of the fair value of the leased asset and
the present value of the minimum lease payments on the lease beginning date as the initial book value,
recognize the amount of the minimum lease payments as the initial book value of long-term account payable,
and treat the difference between the recorded amount of the leased asset and the long-term account payable as
unrecognized financing charges.
17. Construction in progress
The cost of fixed assets transferred from a construction in progress includes all the necessary expenses
incurred for bringing the asset to the expected conditions for use. Construction in progress is transferred to
fixed asset when it has reached its working condition for its intended use. In case the final project accounts
have not been completed or approved, the asset shall be transferred to fixed assets at an estimated value by
considering project budget, cost or actual cost of the project and etc., and the deprecation of the said fixed
assets shall be provided in accordance with the Company’s accounting policy since it has reached its working
condition for its intended use. After the project accounts have been approved, the estimated values shall be
adjusted based on the actual cost, but those provided deprecation shall not be adjusted.
18. Borrowing costs
1. Principle of the recognition of capitalized borrowing costs
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The borrowing costs shall include interest on borrowings, amortization of discounts or premiums on
borrowings, ancillary expenses, and exchange balance on foreign currency borrowings.
Where the borrowing costs incurred to an enterprise can be directly attributable to the acquisition and
construction or production of assets eligible for capitalization, it shall be capitalized and recorded into the
costs of relevant assets. Other borrowing costs shall be recognized as expenses on the basis of the actual
amount incurred, and shall be recorded into the current profits and losses.
The term "assets eligible for capitalization" shall refer to the fixed assets, investment real estate, inventories
and other assets, of which the acquisition and construction or production may take quite a long time to get
ready for its intended use or for sale.
The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements:
(1) The asset disbursements have already incurred, which shall include cash, transferred non-cash assets or
interest bearing debts paid for the acquisition and construction or production activities for preparing assets
eligible for capitalization;
(2) The borrowing costs has already incurred; and
(3) The acquisition and construction or production activities which are necessary to prepare the asset for its
intended use or sale have already started.
2. The capitalization period of borrowing costs
The capitalization period shall refer to the period from the commencement to the cessation of capitalization of
the borrowing costs, excluding the period of suspension of capitalization of the borrowing costs.
When the qualified asset under acquisition and construction or production is ready for the intended use or sale,
the capitalization of the borrowing costs shall be ceased.
Where each part of a qualified asset under acquisition and construction or production is completed separately
and is ready for use, the capitalization of the borrowing costs in relation to this part of asset shall be ceased.
Where each part of an asset under acquisition and construction or production is completed separately and is
ready for use or sale during the continuing construction of other parts, but it cannot be used or sold until the
asset is entirely completed, the capitalization of the borrowing costs shall be ceased when the asset is
completed entirely.
3. The suspension of capitalization of borrowing costs
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the
interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended.
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If the interruption is a necessary step for making the qualified asset under acquisition and construction or
production ready for the intended use or sale, the capitalization of the borrowing costs shall continue. The
borrowing costs incurred during such period shall be recognized as expenses, and shall be recorded into the
profits and losses of the current period, till the acquisition and construction or production of the asset restarts.
4. Method of calculating the capitalization rate and capitalized amount of borrowing costs
For interest expense (minus the income of interests earned on the unused borrowing loans as a deposit in the
bank or investment income earned on the loan as a temporary investment) and the ancillary expense incurred
to a specifically borrowed loan, those incurred before a qualified asset under acquisition, construction or
production is ready for the intended use or sale shall be capitalized at the incurred amount when they are
incurred, and shall be recorded into the costs of the asset eligible for capitalization.
The Company shall calculate and determine the to-be-capitalized amount of interests on the general
borrowing by multiplying the weighted average asset disbursement of the part of the accumulative asset
disbursements minus the general borrowing by the capitalization rate of the general borrowing used. The
capitalization rate shall be calculated and determined in light of the weighted average interest rate of the
general borrowing.
Where there is any discount or premium, the amount of discounts or premiums that shall be amortized during
each accounting period shall be determined by the effective interest rate method, and an adjustment shall be
made to the amount of interests in each period.
19. Biological Assets
20. Oil and gas assets
21. Intangible assets
(1) Measurement, useful life and impairment
1. Measurement of Intangible Assets
(1) Initial measurement is based on cost upon acquisition
The cost of an intangible asset on acquisition include the purchase price, relevant taxes and other necessary
disbursements which may be directly attributable to bringing the intangible asset to the conditions for the
expected purpose. If the payment for an intangible asset is delayed beyond the normal credit conditions and it
is of the financing nature, the cost of the intangible asset shall be determined on the basis of the present value
of the purchase price.
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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
The Company shall review the useful lives and amortization methods of intangible assets with limited useful
lives at each year end.
Per review, the useful lives and amortization methods of intangible assets with limited useful lives at each
year-end is the same with that of last year.
3. Determination of intangible assets with uncertain useful lives
As at the balance sheet date, the Company has no intangible assets with uncertain useful lives.
(2) Development expenditure of internal research
1. Classification criteria for internal research phase and development phase
The expenditures for its internal research and development projects of an enterprise shall be classified into
research expenditures and development expenditures.
Research phase refers to the phase of creative and planned investigation to acquire and study to acquire and
understand new scientific or technological knowledge.
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Development phase refers to the phase during which the result of research phase or other knowledge is
applied into certain projects or designs for the manufacturing of new or substantially improved material,
device and product.
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;
(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.
22. 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.
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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.
23. Long-term deferred expenses
The long-term deferred expense refers to the expenses incurred but shall be borne by current and subsequent
accounting period, which is more than one year. The long-term deferred expense shall be amortized over its
beneficiary period evenly.
24. Employee benefits
(1) Accounting treatment for short employee benefit
The Company shall recognized , in the accounting period in which an employee provides service, actually
occurred short-term employee benefits as a liability, with a corresponding charge to the profit or loss or cost
of an asset for the current period.
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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
The Company which provides termination benefits to employees shall recognize an employee benefits
liability for termination benefits, with a corresponding charge to the profit or loss for the current period, at the
earlier of the following dates:
(1) When the Company cannot unilaterally withdraw the offer of termination benefits because of an
employment termination plan or a curtailment proposal
(2) 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.
25. Estimated liabilities
1. Recognition Criteria of estimated liabilities
The obligation related 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.
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
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 related to the Contingencies. If the time value of money is of great
significance, the best estimate shall be determined after discounting the relevant future outflow of cash.
The best estimate shall be conducted in accordance with the following situations, respectively:
If there is a continuous range for the necessary expenses and if all the outcomes within this range are equally
likely to occur, the best estimate shall be determined in accordance with the average estimate within the range,
that is, the average of the upper and lower limit.
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.
26. Share-Based Payment
27. Preference shares, Perpetual bond and Other Financial instruments
28. Revenue
Whether the Company needs to obey disclosure requirement of specific industry
No
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
104
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
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 steel and other products. Domestic sales revenue is recognized when the following
conditions are met: The Company has delivered the products to buyer under the contract, amount of product
sales revenue is determinable, received or the certificate of the right to receive the amount has been obtained
and the relevant economic benefits are likely to flow into the entity, and related costs can be measured
reliably.
Export sales revenue is recognized when the following conditions are met: the Company has undertaken the
Customs declaration and delivery has occurred under the contract, bill of lading has been obtained, amount of
product sales revenue is determinable, received or the certificate of the right to receive the amount has been
obtained and the relevant economic benefits are likely to flow into the entity, and related costs can be
measured reliably.
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
105
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
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 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.
29. Government Subsidies
(1) The judgment basis and accounting treatment of government subsidies related to assets
Government subsidies related to assets are government subsidies whose primary condition is that an entity
qualifying for them should purchase, construct or otherwise acquire long-term assets. The specific condition
of government subsidies related to assets to the Company is that, government subsidies qualifying for us
should purchase, construct or otherwise acquire long-term assets, including fiscal appropriation for fixed
assets and intangible assets acquired, finance discount of specific borrowing related to fixed assets acquired.
Government subsidies related to assets shall be recognized by deducting the subsidies at the carrying amount
of the assets or recognized as deferred income. Subsidies that recognized as deferred income shall be
recognized in profit or loss on a systematic basis over the periods during the useful lives of the relevant assets
(Subsidies related to daily activities should be figured into Other Income. Subsidies that unrelated to daily
activities should be figured into Non-operating Income).
(2) The judgment basis and accounting treatment of government subsidies related to incomes
Government subsidies related to incomes refer to the government subsidies beside government subsidies
related to assets. The specific condition of government subsidies related to assets to the Company is that,
subsidies are acquired by us and not government subsidies related to assets. The government subsidies related
to incomes to compensate future expenses, shall be recognized as deferred income and transferred to current
profit or loss (Subsidies related to daily activities should be figured into Other Income. Subsidies that
unrelated to daily activities should be figured into Non-operating Income) in the period during which the
expenses compensation is recognized, or deduct relevant cost or loss.
106
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
30. Deferred tax assets and deferred tax liabilities
An enterprise 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)
An entity shall offset deferred tax assets and deferred tax liabilities if, and only if: (a) the entity has a legally
enforceable right to set off current tax assets against current tax liabilities; and (b) the deferred tax assets and
the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:(i) the same
taxable entity; or (ii) different taxable entities which intend either to settle current tax liabilities and assets on
a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which
significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
31. Leases
(1) Accounting treatment of operating lease
(1) The rents paid for operating leases shall be recorded in the profits and losses of the current period by using
the straight-line method over each period of the lease term. The initial direct costs paid by the Company shall
be recorded into the profits and losses of the current period
If the lessor has shouldered any expense related to the lease which shall have been borne by the Company, the
Company shall deduct these expenses from the total rental expense and the remaining rental expense shall be
allocated to each period during the lease term
(2) The rents collected from operating leases shall be recorded in the profits and losses of the current period
by using the straight-line method over each period of the whole lease term in which free lease period is
included. The initial direct costs paid by the Company shall be recorded into the profits and losses of the
107
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
current period. The initial direct costs shall be capitalized if it is material, and be allocated to each period as
per the basis for rental revenue recognition.
If the Company has shouldered any expense related to the lease which shall have been borne by the lessee, the
company shall deduct these expenses from the total rental revenue and the remaining rental revenue shall be
allocated to each period during the lease term.
(2) Accounting treatment of financial leasing
(1) Leased in asset
On the lease beginning date, a lessee shall record the lower one of the fair value of the leased asset and the
present value of the minimum lease payments on the lease beginning date as the initial book value, recognize
the amount of the minimum lease payments as the initial book value of long-term account payable, and treat
the balance between the recorded amount of the leased asset and the long-term account payable as
unrecognized financing charges.
The lessee shall adopt the effective interest rate method to calculate and recognize the financing charge in the
current period. The unrecognized financing charge shall be amortized to each period during the lease term.
Initial direct costs incurred by the Company shall be recorded in the value of the leased asset.
(2) Leased out asset
On the lease beginning date, a lessee shall record the balance between the sum of finance lease receivables
plus unguaranteed residual value and the present value of the sum as unrealized financing income, and record
rental as revenue when received for each period in the future
Initial direct costs incurred by the Company related to the leased asset shall be recorded in the initial
measurement of the finance lease receivables, and reduce the amount of revenue recognized during the lease
term.
32. Discontinuing operation
Discontinuing operation is a component that has been disposed or classified as held for sale by the Company,
and can be distinguished separately in operating and preparing financial statements when one of the following
conditions is met:
(1) The component stands for an independent main business or a major business area;
(2) The component is a part of disposal plan of an independent main business or a major business area;
(3) The component is a subsidiary which is acquired only for sale again.
33. Significant accounting policies and change of accounting estimate
(1) Significant changes in accounting policies.
108
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
□ Applicable √ Not applicable
(2) Significant changes in accounting estimates
□ Applicable √ Not applicable
34. Others
VI. Taxes
1. Major type of taxes and corresponding tax rates
税种 Taxation Method Tax Rate
The balance of output VAT calculated
based on product sales and taxable services
Value-added Tax(VAT) revenue in accordance with the tax laws 17%, 11%, 6%
after subtracting the deductible input VAT
of the period
Based on VAT and business tax actually
City maintenance and construction tax 7%, 5%
paid
Based on VAT and business tax actually
Educational surcharges 3%, 2%
paid
Enterprise income tax Based on taxable profit 25%
Notes to whether there is different income tax rate
Tax payer Income tax rate
2. Tax Preference
None
3. Others
VII. Notes to the consolidated financial statements
1. Cash at bank and on hand
Unit: Yuan
Items Ending balance Beginning balance
Cash on hand 64,107.73 47,743.38
Cash at bank 11,190,437,502.33 12,238,841,745.29
Other monetary funds 1,050,077,541.51 693,022,529.17
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Total 12,240,579,151.57 12,931,912,017.84
Notes:
The details of restricted monetary funds resulted from guarantee or pledge or freeze accounts are as follows:
Items Ending balance Beginning balance
Margin for bank acceptance bill 709.022.567.58 483,737,529.17
Guarantee for Yield Enhancement
46,581,952.50
Products
Deposits for purchase of foreign
currency
Total 755,604,520.08 658,337,529.17
2. Financial assets at fair value through profit or loss
Unit: Yuan
Items Ending balance Beginning balance
Notes:
3. Derivative financial assets
□ Applicable √ Not applicable
4. Notes receivable
(1) Notes receivable disclosed by category
Unit: Yuan
Items Ending balance Beginning balance
Bank acceptance bill 3,486,513,747.73 2,003,701,859.70
Commercial acceptance bill 26,979,278.33
Total 3,486,513,747.73 2,030,681,138.03
(2) The pledged acceptance bill at the year-end
Unit: Yuan
Items The pledged acceptance bill at the year-end
Commercial acceptance bill 1,385,808,380.90
Total 1,385,808,380.90
(3) The amount of Notes receivable endorsed over but not yet matured at the year-end.
Unit: Yuan
110
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Items Derecognized ending balance Un-derecognized ending balance
Bank acceptance bill 6,333,611,744.92
Total 6,333,611,744.92
(4) No Notes receivable has been transferred into accounts receivable due to inability of drawer to meet
acceptance bill at the year-end.
Unit: Yuan
Items Amount transferred to receivable accounts at year end
Notes
5. Accounts receivables
(1) Accounts receivables disclosed by category
Unit: Yuan
Ending balance Beginning balance
Provision for bad Total net
Carrying amount Carrying amount Provision for bad debts Total net
debts book
Category book value
Bad value of
Percenta Percenta Bad debts of Fixed
Amount Amount debts Fixed Amount Amount
ge ge ratio assets
ratio assets
Accounts receivable
736,368, 200,313, 536,054,8 829,837 205,972,5 623,865,42
tested for impairment 100.00% 27.20% 100.00% 24.82%
346.43 526.22 20.21 ,954.48 27.23 7.25
by portfolio
736,368, 200,313, 536,054,8 829,837 205,972,5 623,865,42
Total 100.00% 27.20% 100.00% 24.82%
346.43 526.22 20.21 ,954.48 27.23 7.25
Accounts receivables with large amount individually and bad debt provisions were provided:
□ Applicable √ Not applicable
Accounts receivables tested for impairment by portfolio using the method of Aging analysis:
√ Applicable □ Not applicable
Unit: Yuan
Ending balance
Aging
Accounts receivables Provision for bad debts Bad debts ratio
Within 1 year (inclusive)
354,317,340.47
Subtotal of within 1 year 354,317,340.47
1-2 years 161,343,387.24 8,067,169.36 5.00%
2-3 years 35,576,577.31 7,115,315.46 20.00%
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Over 3 years 185,131,041.40 185,131,041.40 100.00%
Total 736,368,346.43 200,313,526.22 27.20%
Notes:
1. The recognition and provision for bad debts for the individually significant receivables:
The recognition standard of bad debts provision for the individually significant receivables: Individually significant receivables
refer to accounts receivable over RMB10 million or other receivables over RMB 5 million.
The provision for bad debts for the individually significant receivables:
The impairment test shall 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 debts provision and shall be recorded into the profits and losses at the current period.
2. The recognition and provision for bad debts for the receivables in portfolio:
Criteria for Recognition of Portfolio
Portfolio: Insignificant amount of receivables and unadjusted individual receivables
Recognition and provision for bad debts for portfolio
Portfolio: Aging analysis method
Aging analysis method for bad debts provision:
Aging Bad debts ratio for accounts Bad debts ratio for other
receivable (%) receivables (%)
Within 1 year (inclusive)
1-2 years (inclusive) 5 5
2-3 years (inclusive) 20 20
Over 3 years 100 100
3. Insignificant individual amounts of accounts receivable that recognize bad debts individually:
(1) Reasons for individual recognition and provision of bad debts. Accounts receivable amount is proved to be unrecoverable
with conclusive evidence.
(2) Method of bad debts recognition and provision
If conclusive evidence shows the possibility of recovering the amount is small, recognize bad debts individually as if the amount
is unrecoverable.
Receivable accounts on which bad debt provisions are provided on percentage analyze basis in a portfolio:
□ Applicable √ Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the portfolio:
None
(2) Information of provision, reversal or recovery of bad debts of current period
The provision of bad debts of current period is RMB 0.00；Bad debt provision written back was RMB 5,659,001.01 in the period.
Significant items of retrieving or writing back of bad debt provisions:
Unit: Yuan
112
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Company Amount retrieved or written back way of retrieving
(3) Receivable accounts actually written off in the report period
Unit: Yuan
Items Amount written off
Significant amount written off:
Unit: Yuan
Property of the Reason of writing Written off Created by related
Company Amount written off
receivable account off procedures transaction or not
Statement on writing off of receivable accounts:
(4) Top five debtors at the year-end
Ending balance
Company Percentage of total Provision for
Amount Accounts
receivable (%) bad debts
Huachen Auto Group Holding Co., Ltd. 119,239,063.73 16.19
Benxi Nanfen Xinhe Metallurgical Co., Ltd. 87,396,378.47 11.87 4,368,958.76
Benxi Steel & Iron (Group) Machinery Manufacture Co.,
52,584,877.55 7.14 6,252,766.59
Ltd.
Hua You Steel Pipe Co., Ltd. 29,732,876.07 4.04 29,616,623.65
Ningbo CIMC Logistics Equipment Co., Ltd. 21,855,329.22 2.97
Total 310,808,525.04 42.21 40,238,349.00
(5) Recognition of receivable accounts terminated
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
Notes:
6, Prepayments
(1) Prepayments disclosed by aging
Unit: Yuan
Ending balance Beginning balance
Aging
Amount Percentage Amount Percentage
Within 1 year 598,454,617.50 90.93% 452,700,499.16 91.67%
113
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
1-2 years 47,879,302.45 7.27% 31,080,628.03 6.29%
2-3 years 10,018,315.85 1.52% 8,279,599.88 1.68%
Over 3 years 1,805,616.36 0.27% 1,778,932.37 0.36%
Total 658,157,852.16 -- 493,839,659.44 --
Notes:
Significant prepayment with aging over 1 year is paid for commodity in advance ，and the settlement terms agreed in the contract are
not due.
(2) Top five prepaid companies at the year-end
Name of the company Amount Percentage (%)
Benxi Beiying Steel & Iron (Group) Co., Ltd. 336,897,265.03 51.19
Shanxi Xishan Coal and Elect-ricity Power Co., Ltd. 93,542,918.52 14.21
MCC-SFRE Heavy Industry Equipment Co., Ltd. 21,274,964.40 3.23
Shenhua Sales Group Northeast Energy and Trade Co., Ltd 21,000,000.00 3.19
Huaibei Coal Co., Ltd. Coal Transport and Sales Branch 18,000,000.00 2.73
Total 490,715,147.95 74.56
Notes:
7. Interests receivable
(1) Interest receivable disclosed by category
Unit: Yuan
Items Ending balance Beginning balance
Fixed deposit 2,663,285.16 4,208,818.85
Total 2,663,285.16 4,208,818.85
(2) Significant Overdue Interest
Impairment and the
Loans Unit Ending balance Overdue period Reason
criterion
Notes:
8. Dividends receivable
(1) Dividends receivable
Unit: Yuan
114
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Items(Company invested in) Ending balance Beginning balance
(2) Significant dividends receivable over 1 year
Unit: Yuan
Items(Company invested Impairment and the
Ending balance Aging Reason
in) criterion
Notes:
9. Other receivables
(1) Other receivables disclosed by category
Unit: Yuan
Ending balance Beginning balance
Provision for bad Total net
Carrying amount Carrying amount Provision for bad debts Total net
debts book
Category book value
Bad value of
Percenta Percenta Bad debts of Fixed
Amount Amount debts Fixed Amount Amount
ge ge ratio assets
ratio assets
Accounts receivable
229,832, 66,278,2 163,554,6 183,443 67,273,14 116,169,97
tested for impairment 99.25% 28.84% 99.06% 36.67%
912.39 95.69 16.70 ,116.06 3.57 2.49
by portfolio
Other insignificant
items but tested for 1,740,00 1,740,000 1,740,0 1,740,000.0
0.75% 0.94%
impairment 0.00 .00 00.00 0
individually
231,572, 66,278,2 165,294,6 185,183 67,273,14 117,909,97
Total 100.00% 28.62% 100.00% 36.33%
912.39 95.69 16.70 ,116.06 3.57 2.49
Other receivable accounts with large amount and were provided bad debt provisions individually at end of period.
□ Applicable √ Not applicable
Other receivables tested for impairment by portfolio using the method of Aging analysis:
√ Applicable □ Not applicable
Unit: Yuan
Ending balance
Aging
Other receivables Provision for bad debts Bad debts ratio
Within 1 year (inclusive)
150,578,901.00
Subtotal of within 1 year 150,578,901.00
115
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
1-2 years 9,896,312.40 494,815.62 5.00%
2-3 years 4,467,773.65 893,554.73 20.00%
Over 3 years 64,889,925.34 64,889,925.34 100.00%
Total 229,832,912.39 66,278,295.69 28.84%
Notes:
1. The recognition and provision for bad debts for the individually significant receivables:
The recognition standard of bad debts provision for the individually significant receivables: Individually significant
receivables refer to accounts receivable over RMB10 million or other receivables over RMB 5 million.
The provision for bad debts for the individually significant receivables:
The impairment test shall 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 debts provision and shall be recorded into the profits and losses at the current period.
2. The recognition and provision for bad debts for the receivables in portfolio:
Criteria for Recognition of Portfolio
Portfolio: Insignificant amount of receivables and unadjusted individual receivables
Recognition and provision for bad debts for portfolio
Portfolio: Aging analysis method
Aging analysis method for bad debts provision:
Aging Bad debts ratio for accounts Bad debts ratio for other
receivable (%) receivables (%)
Within 1 year (inclusive)
1-2 years (inclusive) 5 5
2-3 years (inclusive) 20 20
Over 3 years 100 100
3. Insignificant individual amounts of accounts receivable that recognize bad debts individually:
(1) Reasons for individual recognition and provision of bad debts. Accounts receivable amount is proved to be unrecoverable
with conclusive evidence.
(2) Method of bad debts recognition and provision
If conclusive evidence shows the possibility of recovering the amount is small, recognize bad debts individually as if the amount
is unrecoverable.
Receivable accounts on which bad debt provisions are provided on percentage analyze basis in a portfolio:
□ Applicable √ Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the portfolio:
None
(2) Information of provision, reversal or recovery of bad debts of current period
The provision of bad debts of current period is RMB 0.00；Bad debt provision written back was RMB 994,847.88 in the period.
Significant items of retrieving or writing back of bad debt provisions:
Unit: Yuan
116
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Company Amount retrieved or written back way of retrieving
(3) Receivable accounts written back or retrieved in the report period
Unit: Yuan
Items Amount written off
Significant other Receivables have been written off this year:
Unit: Yuan
Reason of writing Written off Created by related
Company Property of account Amount written off
off procedures transaction or not
Notes:
(4) Other receivables disclosed by nature
Unit: Yuan
Nature Ending balance Beginning balance
Accounts 211,298,263.27 165,494,806.44
Export tax rebate 0.00 4,990,848.26
Margin and deposit 4,075,331.26 3,329,519.00
Others 16,199,317.86 11,367,942.36
Total 231,572,912.39 185,183,116.06
(5) Top five debtors at the year-end
Unit: Yuan
Percentage of total Provision for bad debts
Company Nature or content Ending balance Aging
other receivables Ending balance
Bengang Group
International Within 1 year,
Accounts 15,997,051.61 6.91% 2,000.00
Economic and Over 3 years
Trading Co., Ltd.
Benxi Steel and
Iron(Group)
Mechanical Accounts 4,610,543.21 Within 1 year 1.99%
Manufacturing Co.,
Ltd.
Huozhou Coal and
Electricity Group Accounts 4,341,257.18 Over 3 years 1.87% 4,341,257.18
Co., Ltd.
117
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
State Grid Liaoning
Power Supply Co., Accounts 3,530,637.67 Within 1 year 1.52%
Ltd. Benxi Branch
Benxi Steel & Iron
(Group) Real-estate
Accounts 2,511,984.11 Within 3 years 1.08% 173,991.52
Development Co.,
Ltd.
Total -- 30,991,473.78 -- 13.38% 4,517,248.70
(6) Receivable accounts involving the government
Unit: Yuan
Government Subsidies Predicted time and
Company Ending balance Age at end of period
Items amount of receiving
(7) Other receivables de-recognition due to transfer of financial asset
(8) Assets and liabilities formed due to the transfer and continuous involvement of other receivables
Notes:
10. Inventories
Whether the Company needs to obey the disclosure requirement of real estate industry
No
(1) Inventories disclosed by category
Unit: Yuan
Ending balance Beginning balance
Total net book Total net book
Items
Carrying amount Impairment value of Fixed Carrying amount Impairment value of Fixed
assets assets
Raw materials 5,942,137,530.69 4,894,918.76 5,937,242,611.93 5,524,143,499.59 4,894,918.76 5,519,248,580.83
Work in process 1,809,499,061.74 19,429,824.09 1,790,069,237.65 1,565,629,213.06 52,905,684.06 1,512,723,529.00
Products 2,109,456,655.73 2,064,659.65 2,107,391,996.08 2,755,527,232.24 5,325,405.33 2,750,201,826.91
Total 9,861,093,248.16 26,389,402.50 9,834,703,845.66 9,845,299,944.89 63,126,008.15 9,782,173,936.74
Whether the Company needs to follow the disclosure requirement of “Shenzhen Stock Exchange Industry Information Disclosure
IndexNo.4 – Listed Company engaged in Seed and Plant Industry”
118
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
(2) Impairment of inventory
Unit: Yuan
Increase in current period Decrease in current period
Beginning
Items Write-back or Ending balance
balance Provision Others Others
write-off
Raw materials 4,894,918.76 4,894,918.76
Work in process 52,905,684.06 33,475,859.97 19,429,824.09
Products 5,325,405.33 3,260,745.68 2,064,659.65
Total 63,126,008.15 36,736,605.65 26,389,402.50
(3) Statement on part of the inventory balance which was the capitalized borrowing expenses
(4) Completed unbalanced assets at the end of the period
Unit: Yuan
Items Amount
Notes:
11. Assets classified as held for sale
Unit: Yuan
Estimated Disposal
Items Ending book value Fair value Estimated Disposal Time
Expenses
Notes:
12. Non-current assets due within one year
Unit: Yuan
Items Ending balance Beginning balance
Notes:
13. Other current assets
Unit: Yuan
Items Ending balance Beginning balance
Prepaid enterprise income tax 182,372,542.02 183,264,161.99
Input tax to be deducted 98,460,611.34 86,134,653.84
Bank Short-Term Financial Products 244,000,000.00
119
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Total 280,833,153.36 513,398,815.83
Notes:
14. Available-for-sale financial assets
(1) Details of available-for-sale financial assets
Unit: Yuan
Ending balance Beginning balance
Items Carrying Total Carrying
Book value Total impairment Book value
amount impairment amount
Available-for-sale equity
20,271,278.63 14,414,693.00 5,856,585.63 29,271,278.63 14,414,693.00 14,856,585.63
instruments :
Measured at cost 20,271,278.63 14,414,693.00 5,856,585.63 29,271,278.63 14,414,693.00 14,856,585.63
Total 20,271,278.63 14,414,693.00 5,856,585.63 29,271,278.63 14,414,693.00 14,856,585.63
(2) Available-for-sale financial assets on fair value at the end of period
Unit: Yuan
Categories of
Available-for-sale equity Available-for-sale debt
Available-for-sale Total
instruments instruments
financial assets
(3) Available-for-sale financial assets measured at cost
Unit: Yuan
Carrying amount Total impairment Cash
At At Percentage dividend
Company
beginning At end of beginning At end of of share in of the
invested in Increase Decrease Increase Decrease
of the the period of the the period the firm % current
period period period
Zhejiang
Bengang
Jingrui 1,967,605. 1,967,605.
20.00%
Steel 63 63
Processing
Co., Ltd.
Suzhou
Bengang 3,888,980. 3,888,980.
20.10%
Industrial 00 00
Co., Ltd.
120
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
China
Steel
Shanghai 14,414,693 14,414,693 14,414,693 14,414,693
15.00%
Steel .00 .00 .00 .00
Processing
Co., Ltd.
Bengang
Baojin
(Shenyang
) 9,000,000. 9,000,000.
15.00%
Automobil 00 00
e New
Material
Co., Ltd
29,271,278 9,000,000. 20,271,278 14,414,693 14,414,693
Total --
.63 00 .63 .00 .00
(4) Change of impairment of available-for-sale financial assets in the report period
Unit: Yuan
Categories of
Available-for-sale equity Available-for-sale debt
Available-for-sale Total
instruments instruments
financial assets
(5) Notes to the fair value of the available-for-sale equity instruments drops significantly or not
contemporarily but do not prepare the impairment loss
Unit: Yuan
Available-for-sale Continuous Accrual of Reason for do not
Fall of fair value
equity Investment Cost Closing fair value falling provision for make provision
compared to cost
instruments Items period(month) impairment for impairment
Notes
15. Held-to-maturity investment
(1) Held-to-maturity investment
Unit: Yuan
Ending balance Beginning balance
Items
Carrying amount Total impairment Carrying value Carrying amount Total impairment Carrying value
121
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
(2) Significant Held-to-maturity investment at end of the period
Unit: Yuan
Bond Par value Face interest rate Actual interest rate Maturity date
(3) Reclassification to held-to-maturity investment
Notes
16. Long-term receivables
(1) Long-term receivables
Unit: Yuan
Ending balance Beginning balance
Discount rate
Items Carrying Provision for Carrying Provision for
Carrying value Carrying value interval
amount bad debts amount bad debts
(2) De-recognition long-term receivables due to transfer of financial assets
(3) Assets and liabilities formed by transferring and continuous involvement of long-term receivables
Notes
17. Long-term equity investments
Unit: Yuan
Increase or decrease Ending
Investme Adjustme balance
Company nt income nt of Declarati Provision of
Beginnin Add Reduce Other Ending
invested or loss other on of cash for provision
g balance investmen investmen equity Others balance
in under comprehe dividends impairme for
t t changes
equity nsive or profit nt impairme
method income nt
1. Joint venture
2. Associated enterprise
Notes
122
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
18. Investment properties
(1) Investment properties under cost method
□ Applicable √ Not applicable
(2) Investment properties under fair value method
□ Applicable √ Not applicable
(3) Investment properties without property rights certificate
Unit: Yuan
Items Carrying value Reason
Notes
19. Fixed assets
(1) Details of fixed assets
Unit: Yuan
Transportation
Items Plants and Buildings Machinery Total
equipment
1. Total original value:
1.Beginning balance 11,782,464,504.30 38,138,073,694.83 832,584,624.54 50,753,122,823.67
2.Increase in current
5,636,318.96 5,636,318.96
period
(1) Purchase 155,476.52 155,476.52
(2) Transferred from
5,480,842.44 5,480,842.44
construction in progress
(3) Merging
3.Decrease in current
59,712,493.86 59,712,493.86
period
(1) Disposal 59,712,493.86 59,712,493.86
4.Ending balance 11,782,464,504.30 38,083,997,519.93 832,584,624.54 50,699,046,648.77
2. Total accumulated
depreciation
1.Beginning balance 5,001,998,265.97 24,497,112,858.57 544,382,199.18 30,043,493,323.72
123
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
2.Increase in current
173,725,458.08 759,332,914.48 2,066,651.70 935,125,024.26
period
(1) Provision 173,725,458.08 759,332,914.48 2,066,651.70 935,125,024.26
3.Decrease in current
54,315,330.17 54,315,330.17
period
(1) Disposal 54,315,330.17 54,315,330.17
4.Ending balance 5,175,723,724.05 25,202,130,442.88 546,448,850.88 30,924,303,017.81
3. Total impairment
1.Beginning balance 8,208,087.85 12,952,774.66 21,160,862.51
2.Increase in current
period
(1) Provision
3.Decrease in current
period
(1) Disposal
4.Ending balance 8,208,087.85 12,952,774.66 21,160,862.51
4. Total net book value
of Fixed assets
1.Ending book value 6,598,532,692.40 12,868,914,302.39 286,135,773.66 19,753,582,768.45
2.Beginning book
6,772,258,150.48 13,628,008,061.60 288,202,425.36 20,688,468,637.44
value
(2) Fixed assets temporarily in idle status
Unit: Yuan
Total accumulated Total net book
Items Total original value Total impairment Nature
depreciation value of Fixed assets
(3) Fixed asset by financial leasing
Unit: Yuan
Total accumulated Total net book value of
Items Total original value Total impairment
depreciation Fixed assets
124
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
(4) Fixed assets leased out on finance
Unit: Yuan
Items Ending book value
Plants and Buildings 23,686,878.11
Machinery 3,674,508.08
Total 27,361,386.19
(5) Fixed assets without property rights certificates at the year-end
Unit: Yuan
Items Total net book value of Fixed assets Reason
Plants and Buildings 996,678,256.84 To be handled in batches
Notes
20. Construction in progress
(1) Details of construction in progress
Unit: Yuan
Ending balance Beginning balance
Items
Carrying amount Total impairment Book value Carrying amount Total impairment Book value
High Strength
Cold Rolling
5,368,077,954.30 5,368,077,954.30 4,947,002,125.33 4,947,002,125.33
Steel Renovation
Project
The Third Cold
Rolling Work
Hot-Dip
456,515,887.84 456,515,887.84 398,719,600.41 398,719,600.41
Galvanizing
Production Line
Project
Energy Saving
And
Environmental
Protection
Reconstruction 196,050,260.88 196,050,260.88 160,819,316.39 160,819,316.39
Of The Converter
System And 180
Ton
Dephophorization
125
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Converter Project
The 360 Square
Meter Sintering 9,533,810.01 9,533,810.01
Machine
Manufacturing
Department
6,063,367.91 6,063,367.91 4,656,735.30 4,656,735.30
Energy Control
Center
Information
System 29,967,791.00 29,967,791.00 27,813,512.90 27,813,512.90
Engineering
Power Plant the
Third Plant
447,174,799.98 447,174,799.98 427,626,724.92 427,626,724.92
Renovation
Project
Other Projects 516,666,103.77 516,666,103.77 244,035,658.86 244,035,658.86
Total 7,030,049,975.69 7,030,049,975.69 6,210,673,674.11 6,210,673,674.11
(2) The change of major construction in progress
Unit: Yuan
Includin
Accumul
g:
ated
Increase capitaliz
Beginnin Input of amount
in Transfer Other Ending ed Capitaliz Source
Items Budget g Budget Progress of
current to FA decrease balance interest ation rate of fund
balance (%) capitaliz
period of
ed
current
interest
period
High
Strength
Cold
Rolling 6,134,98 4,947,00 421,075, 5,368,07 721,446, 168,535,
80.00% 82% 4.10% Others
Steel 0,000.00 2,125.33 828.97 7,954.30 966.74 430.93
Renovati
on
Project
The
Third 869,180, 398,719, 57,796,2 456,515,
53.00% 80% 0.00 Others
Cold 000.00 600.41 87.43 887.84
Rolling
126
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Work
Hot-Dip
Galvaniz
ing
Producti
on Line
Project
Energy
Saving
And
Environ
mental
Protectio
n
Reconstr
uction 1,778,64 160,819, 35,230,9 196,050, 138,731, 10,884,3
85.00% 90% 4.10% Others
Of The 4,000.00 316.39 44.49 260.88 941.83 74.52
Converte
r System
And 180
Ton
Dephoph
orization
Converte
r Project
The 360
Square
1,284,03 9,533,81 9,533,81 68,627,4
Meter 88.00% 96% 4.10% Others
2,000.00 0.01 0.01 33.26
Sintering
Machine
Manufac
turing
Departm
294,500, 4,656,73 3,398,15 1,991,51 6,063,36 45,372,1
ent 91.00% 96% 4.10% Others
000.00 5.30 2.03 9.42 7.91 34.03
Energy
Control
Center
Informat
ion
427,250, 27,813,5 2,154,27 29,967,7 34,557,5 379,550.
System 92.00% 96%
000.00 12.90 8.10 91.00 23.62 99
Engineer
ing
Power 610,720, 427,626, 19,548,0 447,174, 73.00% 83% 27,140,0 9,768,77 4.10% Others
127
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Plant the 000.00 724.92 75.06 799.98 56.82 8.16
Third
Plant
Renovati
on
Project
Other 244,035, 276,119, 3,489,32 516,666,
0.00 Others
Projects 658.86 767.93 3.02 103.77
11,399,3
6,210,67 824,857, 5,480,84 7,030,04 1,035,87 189,568,
Total 06,000.0 -- -- --
3,674.11 144.02 2.44 9,975.69 6,056.30 134.60
0
(3) Impairment provision provided on construction in process
Unit: Yuan
Provision for impairment of the current
Items Reason
period
Notes
21. Construction materials
Unit: Yuan
Items Ending balance Beginning balance
Special equipment 4,558,925.80 7,783,370.29
Total 4,558,925.80 7,783,370.29
Notes:
22. Disposal of fixed assets
Unit: Yuan
Items Ending balance Beginning balance
Notes:
23. Productive biological assets
(1) Productive biological assets under cost method
□ Applicable √ Not applicable
(2) Productive biological assets under fair value method
□ Applicable √ Not applicable
128
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
24. Oil and gas assets
□ Applicable √ Not applicable
25. Intangible assets
(1) Details of intangible assets
Unit: Yuan
Non-patent
Items Land use right Patent Software Total
technologies
1. Total original
value
1.Beginning
296,245,314.76 397,064.99 296,642,379.75
balance
2.Increase in
current period
(1) Purchase
(2) Internal
R&D
(3) Merging
3.Decrease in
current period
(1) Disposal
4.Ending
296,245,314.76 397,064.99 296,642,379.75
balance
2. Accumulative
amortizing
1.Beginning
36,763,695.35 41,273.47 36,804,968.82
balance
2.Increase in
2,962,453.13 19,853.24 2,982,306.37
current period
(1) Provision 2,962,453.13 19,853.24 2,982,306.37
3.Decrease in
current period
(1) Disposal
129
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
4.Ending
39,726,148.48 61,126.71 39,787,275.19
balance
3. Total
impairment
1.Beginning
balance
2.Increase in
current period
(1) Provision
3.Decrease in
current period
(1) Disposal
4.Ending
balance
4. Total net book
value of Fixed
assets
1.Ending book
256,519,166.28 335,938.28 256,855,104.56
value
2.Beginning
259,481,619.41 355,791.52 259,837,410.93
book value
There isn’t any intangible asset constituted by internal R&D in the period.
(2) Property certificate not granted yet
Unit: Yuan
Items Total net book value of Fixed assets Reason
Notes:
26. Development expenditure
Unit: Yuan
Beginning Ending
Items Increase in current period Decrease in current period
balance balance
Notes
130
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
27. Goodwill
(1) Original book value
Unit: Yuan
Beginning
Items Increase Decrease Ending balance
balance
(2) Provision for impairment
Unit: Yuan
Beginning
Items Increase Decrease Ending balance
balance
Notes to process of impairment test and parameter and method of recognition of impairment loss:
Notes
28. Long-term deferred expenses
Unit: Yuan
Increase in current Amortized amount
Items Beginning balance Other decrease Ending balance
period in current period
Notes
29. Deferred tax assets/Deferred tax liabilities
(1) Un-deducted deferred tax asset
Unit: Yuan
Ending balance Beginning balance
Items Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Asset impairment
325,245,151.01 81,311,287.75 368,635,605.55 92,158,901.41
provision
Internal trade profit not
78,749,247.78 19,687,311.95 52,499,498.52 13,124,874.63
realized
Deductible losses 728,330,824.55 182,082,706.14 1,136,092,189.97 284,023,047.49
Differences of
depreciation and 333,978,859.03 83,494,714.76 333,978,859.03 83,494,714.76
amortization
Welfare for early
4,686,056.91 1,171,514.23 5,859,027.00 1,464,756.75
retirement
131
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Unpaid employee salary 32,180,728.46 8,045,182.12 7,339,835.99 1,834,959.00
Total 1,503,170,867.74 375,792,716.95 1,904,405,016.06 476,101,254.04
(2) Deferred income tax liabilities not deducted
Unit: Yuan
Ending balance Beginning balance
Items Taxable provisional Taxable provisional
Deferred tax liabilities Deferred tax liabilities
difference difference
(3) Deferred income tax asset or liability at net amount after deduction
Unit: Yuan
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 tax assets 375,792,716.94 476,101,254.04
(4) Unrecognized deferred tax assets
Unit: Yuan
Items Ending balance Beginning balance
Deductible temporary differences 3,311,628.91 3,311,628.91
Deductible losses 2,339,030,279.85 3,041,165,564.90
Total 2,342,341,908.76 3,044,477,193.81
(5) The deductible loss of unrecognized deferred tax assets due in the following period
Unit: Yuan
Year At end of the period At beginning of the period Nature
2017 44,146,053.02
2018 61,226,455.38
2019 179,596,211.65
2020 2,328,797,491.85 2,745,964,056.85
2021 10,232,788.00 10,232,788.00
Total 2,339,030,279.85 3,041,165,564.90 --
Notes:
132
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
30. Other non-current assets
Unit: Yuan
Items Ending balance Beginning balance
Notes:
31. Short-term loans
(1) Short-term loans disclosed by category
Unit: Yuan
Items Ending balance Beginning balance
Pledge loans 645,311,200.00
Guaranteed loans 14,508,963,200.00 10,633,173,500.00
Credit loans 8,278,711,200.00 7,483,988,079.48
Total 22,787,674,400.00 18,762,472,779.48
Notes:
(2) Outstanding overdue short-term loans
Outstanding overdue short-term loans at the end of period is RMB 0.00, significant outstanding overdue short-term loans are as
following:
Unit: Yuan
Unit Ending balance Interest rate Overdue time Overdue interest rate
Notes:
32. Financial liabilities at fair value through profit or loss
Unit: Yuan
Items Ending balance Beginning balance
Notes:
33. Advance from customers
□ Applicable √ Not applicable
34. Notes payable
Unit: Yuan
Categories Ending balance Beginning balance
133
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Bank acceptance bill 2,654,713,650.65 6,372,173,897.13
Total 2,654,713,650.65 6,372,173,897.13
Notes payable mature as of end of period was RMB0.00.
35. Accounts payable
(1) Accounts payable disclosed by category
Unit: Yuan
Items Ending balance Beginning balance
Accounts payable for goods 4,109,974,739.18 4,399,863,760.66
Accounts payable for labor 72,532,213.01 78,583,112.68
Accounts payable for project and
719,619,305.25 818,679,528.16
equipment
Accounts payable for repair 476,312,718.96 382,273,450.21
Others 1,433,642.25 844,809.81
Total 5,379,872,618.65 5,680,244,661.52
(2) Material payable aged over 1 year
Unit: Yuan
Items Ending balance Reason
Benxi Steel & Iron (Group) Mining Co.,
911,756,652.03 Not yet settled
Ltd.
Bengang Group International Economic
790,278,853.89 Not yet settled
and Trading Co., Ltd.
Liaoning Shenjiao International Trade Co.,
82,865,953.79 Not yet settled
Ltd.
Jixi Huasheng Fengyuan Coal Preparation
46,005,916.07 Not yet settled
Co., Ltd.
Benxi Nanfen Xinhe Metallurgical Co.,
39,634,041.29 Not yet settled
Ltd.
Total 1,870,541,417.07 --
Notes:
134
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
36. Advance from customers
(1) Advance from customers disclosed by category
Unit: Yuan
Items Ending balance Beginning balance
Advance for goods 3,290,002,245.71 3,679,477,129.80
Total 3,290,002,245.71 3,679,477,129.80
(2) Material advances received for over 1 year
Unit: Yuan
Items Ending balance Reason
(3) Unfinished project has already paid at the end of period
Unit: Yuan
Items Amount
Notes:
37. Employee benefits payable
(1) Employee benefits payable
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance
1. Short-term
18,146,736.28 791,828,227.17 773,455,834.34 36,519,129.11
employee benefits
2. Post-employment
benefits - defined 57,730.42 124,856,230.57 124,853,279.83 60,681.16
contribution plans
3. Termination benefits 5,859,027.00 1,174,970.09 4,684,056.91
Total 24,063,493.70 916,684,457.74 899,484,084.26 41,263,867.18
(2) Short-term employee benefits
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance
1. Salary, bonus,
8,895,580.36 638,787,236.89 621,067,078.06 26,615,739.19
allowance and
135
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
subsidy
2. Employee welfare 0.00 26,039,726.71 26,039,726.71
3.Social security expense 655,574.20 58,424,922.00 58,424,922.00 655,574.20
Including: Medical
0.00 43,281,121.35 43,281,121.35
insurance
Work injury
655,574.20 15,133,590.27 15,133,590.27 655,574.20
insurance
Maternity
0.00 10,210.38 10,210.38
insurance
4. Housing fund 6,850,713.00 55,104,166.20 55,102,166.20 6,852,713.00
5. Union funds and
1,744,868.72 13,472,175.37 12,821,941.37 2,395,102.72
staff education fee
Total 18,146,736.28 791,828,227.17 773,455,834.34 36,519,129.11
(3) Defined contribution plans
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance
1. Basic pension fund 56,104.40 119,965,183.93 119,961,538.23 59,750.10
2. Unemployment
1,626.02 4,891,046.64 4,891,741.60 931.06
insurance
Total 57,730.42 124,856,230.57 124,853,279.83 60,681.16
Notes:
38. Current tax liabilities
Unit: Yuan
Items Ending balance Beginning balance
Value-added Tax(VAT) 1,490,500.36 2,173,913.92
Enterprise income tax 9,038,660.74 13,019,967.76
City maintenance and construction tax 2,179,408.04 14,026,666.46
Housing property tax 3,178,293.23 2,970,971.37
Educational surcharges 1,570,190.02 10,029,654.63
Others 2,213,406.91 3,550,411.32
Total 19,670,459.30 45,771,585.46
Notes:
136
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
39. Interests payable
Unit: Yuan
Items Ending balance Beginning balance
Corporate bond interest 31,334,821.13 70,109,821.13
Short-term loan interest payable 12,542,327.91 5,005,444.53
Total 43,877,149.04 75,115,265.66
Notes:
Unit: Yuan
Unit Overdue amount Reason
Notes:
40. Dividends payable
Unit: Yuan
Items Ending balance Beginning balance
Notes, the reason of significant dividends payable aging over 1 year:
41. Other payables
(1) Other payables disclosed by nature
Unit: Yuan
Items Ending balance Beginning balance
Deposit 2,360,628.87 2,719,618.51
Margin 148,174,624.13 130,550,329.63
Accounts 300,236,728.97 304,191,214.76
Others 18,727,978.11 22,548,050.88
Total 469,499,960.08 460,009,213.78
(2) Significant other payables ageing over one year
Unit: Yuan
Items Ending balance Reason
Benxi Steel & Iron (Group) Co., Ltd. 200,504,584.76 Not yet settled
Bengang Group International Economic
27,984,077.05 Not yet settled
and Trading Co., Ltd.
Total 228,488,661.81 --
Notes
137
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
42. Liabilities held for sale
Unit: Yuan
Items Ending balance Beginning balance
Notes:
43. Non-current liabilities due within one year
Unit: Yuan
Items Ending balance Beginning balance
Long-term loans due within one year 1,110,787,748.00 227,669,535.66
Long-term payables due within one year 210,000,000.00
Total 1,110,787,748.00 437,669,535.66
Notes:
44. Other current liabilities
Unit: Yuan
Items Ending balance Beginning balance
Changes in short-term bonds payable:
Unit: Yuan
Amortizat
Interest Repayme
Issuance ion of the
Bond Date of Bond Issue Beginnin calculated nt in Ending
Par value in current Premiums
name issue maturity value g balance by par current balance
period and
value period
Discounts
Notes:
45. Long-term loans
(1) Long-term loans disclosed by category
Unit: Yuan
Items Ending balance Beginning balance
Guaranteed loans 3,139,041,691.87 3,440,691,721.62
Credit loans 22,296,444.00 8,240,000.00
Total 3,161,338,135.87 3,448,931,721.62
Long-term loans disclosed by category:
Notes，including interest rate interval:
138
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
46. Bonds payable
(1) Bonds payable
Unit: Yuan
Items Ending balance Beginning balance
Corporate bond 1,496,550,521.55 1,494,825,782.32
Total 1,496,550,521.55 1,494,825,782.32
(2) Changes in bonds payable (exclude other financial instruments such as preference shares or perpetual
liabilities)
Unit: Yuan
Amortizat
Interest Repayme
Issuance ion of the
Bond Date of Bond Issue Issue calculated nt in Ending
Par value in current Premiums
name issue maturity value value by par current balance
period and
value period
Discounts
Bengang
Steel
Plate Co.,
Ltd. 1,500,000 February 1,500,000 1,494,825 38,775,00 -1,724,73 1,496,550
th
3yaers
Corporate ,000.00 5 , 2015 ,000.00 ,782.32 0.00 9.23 ,521.55
Bond of
2015
(Phase I)
(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
Unit: Yuan
Financial At beginning of the period Increase Decrease At end of the period
instruments
issued Quantity Book value Quantity Book value Quantity Book value Quantity Book value
externally
Statements on basis of categorizing of other financial instruments as financial liabilities
Notes
139
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
47. Long-term payables
(1) Long-term payables disclosed by nature
Unit: Yuan
Items Ending balance Beginning balance
Notes:
48. Long-term employee benefits payable
(1) Long-term employee benefits payable
Unit: Yuan
Items Ending balance Beginning balance
(2) Changes of defined benefit plan
Defined benefit plan obligation present value:
Unit: Yuan
Items January to June 2017 January to June 2016
Planned assets:
Unit: Yuan
Items January to June 2017 January to June 2016
Defined benefit plan 净 liabilities(Net assets)
Unit: Yuan
Items January to June 2017 January to June 2016
Content of defined benefit plan and the related risks, and the related influences to the Company’s future cash flow, time and
uncertainty:
Results of significant actuarial assumption and sensitivity analysis of defined benefit plan:
Notes:
49. Special accounts payable
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance Reason
Notes:
50. Estimated liabilities
Unit: Yuan
140
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Items Ending balance Beginning balance Reason
Notes, including significant assumption and estimate of estimated liabilities:
51. Deferred income
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance Reason
Government
410,399,000.00 700,000.00 15,047,000.00 396,052,000.00
Subsidies
Total 410,399,000.00 700,000.00 15,047,000.00 396,052,000.00 --
Projects of government subsidies:
Unit: Yuan
Transfer to
Beginning Related to assets
Items Increase non-operating Other changes Ending balance
balance or income
income
MES PROJECT
5,160,000.00 860,000.00 4,300,000.00 Related to assets
SPECIAL FUND
Second Batch of
National Cleaned
Manufacturing 800,000.00 400,000.00 400,000.00 Related to assets
Demonstration
Project Fund
Industrial
Enterprise Energy
Management
Center 11,600,000.00 11,600,000.00 Related to assets
Construction
Demonstration
Project
Environment
Pollution
12,474,000.00 2,617,000.00 9,857,000.00 Related to assets
Renovation
Project
Environment
Renovation
Project and
1,180,000.00 250,000.00 930,000.00 Related to assets
Regional Basin
Environment
Protection Project
Energy-saving
2,954,000.00 1,477,000.00 1,477,000.00 Related to assets
Technological
141
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Reform Fiscal
Reward Project
High Strength
Cold Rolling
250,000,000.00 250,000,000.00 Related to assets
Steel Renovation
Project
Automobile
High-class
Electrolytic Zinc
32,832,000.00 4,104,000.00 28,728,000.00 Related to assets
Steel Plate
Production Line
Project
Sintering
Machine Residue
Heat Usage and 12,612,000.00 2,102,000.00 10,510,000.00 Related to assets
Desulfurization
Project
Wastewater
Treatment Plant
1,500,000.00 750,000.00 750,000.00 Related to assets
Renovation
Project
Overseas R&D
Team
4,000,000.00 4,000,000.00 Income
Introduction
Special Fund
7 130t Boilers
Flue Gas
Desulfurization
24,000,000.00 24,000,000.00 Related to assets
Renovation
Project of Power
Plant
Treatment and
Salt Extraction
Project of
200,000.00 50,000.00 150,000.00 Related to assets
Desulfurization
Waste Liquid of
Coke Plant
Overseas
Advanced
Technology 12,652,000.00 442,000.00 12,210,000.00 Related to assets
Introduction
Special Fund
142
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Automobile Steel
Sheet
Engineering 1,000,000.00 1,000,000.00 Related to assets
Laboratory
Project
Third-generation
High Strength
Steels for 2,900,000.00 2,900,000.00 Related to assets
Automobile R&D
Project
The 360 Cubic
Meter Sintering
Machine Flue
Gas
600,000.00 100,000.00 500,000.00 Related to assets
Desulfurization
Renovation
Project of Blast
Furnace Plant
Environment
Protection Project 3,480,000.00 580,000.00 2,900,000.00 Related to assets
Special Fund
Advance
Treatment of
Carbon Fiber
Waste Water
9,500,000.00 9,500,000.00 Related to assets
Project of Plates
Coke Plant
Dongfeng
Workshop
Coal-fired Boiler
Desulfuration and
Denitration
Project of
6,000,000.00 6,000,000.00 Related to assets
Bengang Power
Plant High
Pressure
Workshop
Cogeneration
Transformation
Project of Power 10,000,000.00 10,000,000.00 Related to assets
Plant the Third
Workshop
143
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Sintering
Machine Energy
Conservation and
Environment 4,640,000.00 580,000.00 4,060,000.00 Related to assets
Protection Project
of Iron Making
Plant
Air Quality
Automatic
315,000.00 35,000.00 280,000.00 Related to assets
Monitoring
System
Compensation
from Resource
700,000.00 700,000.00 Income
Management
Committee
Total 410,399,000.00 700,000.00 15,047,000.00 396,052,000.00 --
Notes:
52. Other non-current liabilities
Unit: Yuan
Items Ending balance Beginning balance
Notes:
53. Share capital
Unit: Yuan
Changes(+, -)
Beginning Capitalization
Issuing of new Ending balance
balance Bonus shares of common Others Subtotal
share
reserve fund
Total of capital 3,136,000,000. 3,136,000,000.
shares 00 00
Notes:
144
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
54. Other equity instruments
(1) Particulars about other financial instruments issued externally such as preference shares or perpetual
bonds.
(2) Change of financial instruments issued externally such as preference shares or perpetual bonds
Unit: Yuan
Financial At beginning of the period Increase Decrease At end of the period
instruments
issued Quantity Book value Quantity Book value Quantity Book value Quantity Book value
externally
Changes of other equity instruments during the current period, reason and the basis of accounting treatment
Notes:
55. Capital reserves
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance
Capital premium over par
8,998,928,073.23 8,998,928,073.23
value
Other capital reserves 115,917,468.82 115,917,468.82
Total 9,114,845,542.05 9,114,845,542.05
Notes:
56. Treasury stock
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance
Notes:
57. Other comprehensive income
Unit: Yuan
2016
Less: Amount
Amount transferred After-tax After-tax
Beginning Less: Ending
Items incurred into profit and attribute to attribute to
balance Income tax balance
before loss in the the parent minority
expenses
income tax current period company shareholder
current period
145
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
that
recognized
into other
comprehensive
income in
prior period
Notes，including the adjustment to origin amount of effective portion of gains or losses from cash flow hedging reserve to arbitraged
items:
58. Special reserves
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance
Safety production cost 372,721.86 19,733,398.02 9,449,146.14 10,656,973.74
Total 372,721.86 19,733,398.02 9,449,146.14 10,656,973.74
Notes:
59. Surplus reserves
Unit: Yuan
Items Beginning balance Increase Decrease Ending balance
Statutory surplus
961,105,529.85 961,105,529.85
reserves
Total 961,105,529.85 961,105,529.85
Notes:
60. Undistributed profits
Unit: Yuan
Items Amount Distribution rate
Before adjustments: undistributed profits at last
-496,969,242.61 -1,278,244,071.93
year-end
Beginning balance of retained profits after
-496,969,242.61 -1,278,244,071.93
adjustments
Add: undistributed profit belonging to parent
523,635,653.57 781,274,829.32
company
Ending balance of undistributed profits 26,666,410.96 -496,969,242.61
List of adjustment of opening retained profits:
1) Influence to beginning undistributed profits was RMB 0.00 caused by retroactive adjustment due to “Accounting Standard for
Business Enterprises” and related new regulations.
146
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
2) Influence to beginning undistributed profits was RMB 0.00 due to changes in accounting policies.
3) Influence to begging undistributed profits was RMB 0.00 due to corrections of major accounting mistake.
4) Influence to begging undistributed profits was RMB 0.00 due to the changes of consolidation scope caused by common control.
5) Influence to begging undistributed profits was RMB 0.00 due to other adjustments.
61. Operating income and operating cost
Unit: Yuan
January to June 2017 January to June 2016
Items
Revenue Cost Revenue Cost
Principal business 19,476,278,905.41 17,638,682,335.86 11,890,962,256.28 10,286,817,465.00
Other business 1,260,207,998.33 1,051,983,630.25 738,622,313.07 627,364,837.04
Total 20,736,486,903.74 18,690,665,966.11 12,629,584,569.35 10,914,182,302.04
62. Taxes and Surcharges
Unit: Yuan
Items January to June 2017 January to June 2016
City maintenance and construction tax 46,713,364.91 15,218,000.34
Educational surcharges 33,504,830.35 11,090,597.39
Housing property tax 37,046,142.33
Land use tax 3,155,810.05
Vehicle and vessel use tax 15,152.73
Stamp tax 13,321,430.70 24,297.03
Total 133,756,731.07 26,332,894.76
Notes:
The business activities of the occurrence of property tax, land use tax, vehicle and vessel use tax, stamp tax from May 1, 2016 is
reclassified from “General and administrative expenses” to “Tax and surcharges”. The tax occurred before May 1, 2016 shall not be
adjusted. Comparative data stays unadjusted.
63. Selling and distribution expenses
Unit: Yuan
Items January to June 2017 January to June 2016
Freight 428,678,322.48 282,160,883.00
Port surcharges 86,681,806.22 90,759,527.08
Agency fee 38,969,368.55 28,513,161.47
Package fee 3,109,039.80 2,761,636.55
147
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Salary and benefits 10,794,773.70 10,503,082.85
Others 19,399,396.68 15,362,772.19
Total 587,632,707.43 430,061,063.14
Notes:
Selling and distribution expenses of the current period was RMB 587,632,707.43, increased RMB 157,571,644.29 compared to
previous period which was RMB 430,061,063.14, at the rate of 36.64%. The reason of the increase is the increase of external freight
expenses.
64. General and administrative expenses
Unit: Yuan
Items January to June 2017 January to June 2016
Salary and benefits 94,209,841.05 76,395,221.96
Accounts payable for repair 80,215,426.18 92,167,672.38
Taxes 44,353,333.71
Land use right fee 27,345,714.30 28,257,238.10
Depreciation 25,945,531.46 13,236,195.97
Social security expense 21,716,785.13 20,539,733.05
Pollution discharge fee 25,709,122.00 5,866,430.00
Water resources fee 5,596,700.00
Housing fund 4,614,199.60 5,022,412.40
Heating fee 11,677,556.25 4,103,468.74
Entertainment expense 1,535,128.96 1,333,401.18
Amortization of intangible assets 2,982,306.37 2,969,528.58
Freight 277,851.35 290,256.00
Lease expense 572,987.24 693,067.82
Others 56,552,255.19 56,726,758.59
Total 358,951,405.08 351,954,718.48
Notes:
65. Financial expenses
Unit: Yuan
Items January to June 2017 January to June 2016
Interest cost 434,308,806.10 396,101,669.29
Less: Interest income 36,772,069.07 12,694,596.80
Exchange loss -23,234,309.69 175,055,105.02
148
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Others 7,210,977.46 28,205,647.68
Total 381,513,404.80 586,667,825.19
Notes:
Financial expenses of the current period was RMB 381,513,404.80, decreased RMB 205,154,420.39 compared to the previous period
which was RMB 586,667,825.19, at the rate of 34.97%. The reason of the decrease is because of the decrease of exchange loss.
66, Asset impairment loss
Unit: Yuan
Items January to June 2017 January to June 2016
Loss for bad debts -6,653,848.89 -1,880,998.86
Impairment of inventories -36,736,605.65
Total -43,390,454.54 -1,880,998.86
Notes:
Asset impairment loss of the current period was RMB-43,390,450.54, decreased RMB 41,509,455.68 compared to previous period
which was RMB -1,880,998.86, at the rate of 2,206.78%. The reason of the decrease is because of the reverse of inventory
impairment.
67. Variable profit and loss of fair value
Unit: Yuan
Sources January to June 2017 January to June 2016
Notes:
68. Income on investment
Unit: Yuan
Items January to June 2017 January to June 2016
Income from bank short-term financial
3,294,593.14
products
Total 3,294,593.14
Notes:
69. Other Incomes
Unit: Yuan
Sources January to June 2017 January to June 2016
149
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
70. Non-operating income
Unit: Yuan
The amount recognized in
Items January to June 2017 January to June 2016
non-operating profit
Non-current assets disposal
3,015,294.00 2,120,458.89 3,015,294.00
income
Including: Fixed assets disposal
3,015,294.00 2,120,458.89 3,015,294.00
income
Debt restructuring gain 822,116.45 4,527,416.04 822,116.45
Government Subsidies 15,047,000.00 16,622,000.00 15,047,000.00
Others 2,130,078.13 926,794.62 2,130,078.13
Total 21,014,488.58 24,196,669.55 21,014,488.58
Details of government subsidies recorded into current profits and loss:
Unit: Yuan
Whether
Whether
influence the Amount of Related to
Distribution Distribution Special Current
Items Nature type profits or the previous assets or
entity reason subsidy or amount
losses of the period income
not
year or not
Subsidies
granted by
the state to
encourage
and support
Transfer from
City Bureau certain 14,347,000.0 16,622,000.0 Related to
deferred Subsidy Yes No
of Finance industries and 0 0 assets
income
industries
(according to
the national
policy
regulations)
Subsidies
Benxi Xihu granted by
Compensatio
District the state to
n from Benxi
National encourage
Lake
Treasury Subsidy and support Yes No 700,000.00 Income
Resource
Payment and certain
Management
Delivery industries and
Committee
Center industries
(according to
150
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
the national
policy
regulations)
15,047,000.0 16,622,000.0
Total -- -- -- -- -- --
0 0
Notes:
71. Non-operating expenses
Unit: Yuan
The amount recognized in
Items January to June 2017 January to June 2016
non-operating profit
Non-current assets disposal loss 4,593,420.30 105,474.99 4,593,420.30
Including: Fixed assets disposal
4,593,420.30 105,474.99 4,593,420.30
loss
Total 4,593,420.30 105,474.99 4,593,420.30
Notes:
72. Income tax expense
(1) Income tax expense
Unit: Yuan
Items January to June 2017 January to June 2016
Income tax payable for the current year 16,796,524.06 3,949,704.94
Deferred income tax expense 100,308,537.10 136,112,516.35
Total 117,105,061.16 140,062,221.29
(2) Accounting profit and income tax expense adjustment process
Unit: Yuan
Items January to June 2017
Total profit 647,072,805.21
Income tax expense calculate according to the official or
161,768,201.30
applicable tax rate
Effect of use of deductible losses of unrecognized deferred tax
-44,663,140.14
asset of prior period
Income tax expense 117,105,061.16
Notes
151
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
73. Other comprehensive income
Please refer to notes.
74. Notes of statement of cash flows
(1) Cash received related to other operating activities
Unit: Yuan
Items January to June 2017 January to June 2016
Withdraw of current accounts, advance for
49,988,918.77 70,468,435.19
another
Interest income 36,772,069.07 12,694,596.80
Special subsidy income 700,000.00
Non-operating income 350,490.77 926,794.62
Others 5,600.00 238,169.68
Total 87,817,078.61 84,327,996.29
Notes:
(2) Cash paid related to other operating activities
Unit: Yuan
Items January to June 2017 January to June 2016
Current accounts, advance for another 317,981,786.61 322,978,268.19
General and administrative expenses 18,370,234.96 40,919,405.31
Selling and distribution expenses 4,534,010.56 5,628,363.93
Bank charges 7,210,977.46 28,205,647.68
Others 287,293.34 2,128,404.62
Total 348,384,302.93 399,860,089.73
Notes:
(3) Other cash received relevant to investment activity
Unit: Yuan
Items January to June 2017 January to June 2016
Notes:
(4) Other cash paid relevant to investment activity
Unit: Yuan
152
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Items January to June 2017 January to June 2016
Notes:
(5) Cash received related to other financing activities
Unit: Yuan
Items January to June 2017 January to June 2016
Financing service charges and handling
fees
Financial leasing 210,000,000.00
Total 210,000,000.00
Notes:
(6) Cash paid related to other financing activities
Unit: Yuan
Items January to June 2017 January to June 2016
Notes:
75. Supplementary details of statement of cash flows
(1) Supplementary details of statement of cash flows
Unit: Yuan
Supplementary information Amount in this period Amount in last year
1． A reconciliation of net profit to cash
-- --
flows from operating activities:
Net Profit 529,967,744.05 206,295,737.87
Add: Asset impairment losses -43,390,454.54 -1,880,998.86
Depreciation of fixed assets, of oil-gas
935,125,024.26 1,015,556,593.59
assets, of productive biological assets
Amortization of intangible assets 2,982,306.37 2,969,528.58
Losses proceeds from disposal of PPE,
intangible assets and other long-term 1,578,126.30 -2,014,983.90
assets(Earnings marked“－”)
Financial expenses(Earnings marked“－”) 381,513,404.80 586,667,825.19
Investment loss(Earnings marked“－”) -3,294,593.14
Deferred tax assets reduction(Addition
100,308,537.11 136,112,516.35
marked“－”)
153
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Inventories reduction(Addition marked“－”) -52,529,908.92 -902,878,201.17
Operating receivable items
40,403,360.62 32,967,723.56
reduction(Addition marked“－”)
Operating payable items increase (Less
-5,939,969,231.63 1,316,981,622.31
marked"－")
Net cash flows generated from operating
-4,047,305,684.72 2,390,777,363.52
activities
2．Payments of investing and financing
-- --
activities not involving cash:
3．The net increase in cash and cash
-- --
equivalents:
Ending balance of the monetary funds 11,484,974,631.49 7,378,445,456.46
Less: Beginning balance of the monetary
12,273,574,488.67 4,612,782,772.98
funds
The net increase in cash and cash equivalents -788,599,857.18 2,765,662,683.48
(2) Net Cash paid of obtaining the subsidiary
Unit: Yuan
Amount
Including: --
Including: --
Including: --
Notes:
(3) Net Cash receive of disposal of the subsidiary
Unit: Yuan
Amount
Including: --
Including: --
Including: --
Notes:
(4) The structure of cash and cash equivalents
Unit: Yuan
Items Ending balance Beginning balance
1. Cash 11,484,974,631.49 12,273,574,488.67
154
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Including: Cash on hand 64,107.73 47,743.38
Bank deposits available on demand 11,190,437,502.33 12,238,841,745.29
Other monetary funds available on
294,473,021.43 34,685,000.00
demand
2. The final cash and balance of cash
11,484,974,631.49 12,273,574,488.67
equivalents
Notes:
76. Notes to changes in equity
Notes to the other adjustment to closing balance of the previous period and the adjustment amount:
77. The assets with the ownership or use right restricted
Unit: Yuan
Items Ending book value Reason
Cash at bank and on hand 755,604,520.08 Deposit for notes and L/C
Notes receivable 1,385,808,380.90 Pledged for acceptance bill
Total 2,141,412,900.98 --
Notes:
78. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: Yuan
Ending balance in foreign Ending balance translated to
Items Exchange rate at the year-end
currency RMB
Including: USD 477,924,242.86 6.7744 3,237,649,990.83
EUR 87,829,623.74 7.7496 680,644,452.14
HKD 1,009,079.01 0.8679 875,779.67
Short-term loans
Including: USD 965,500,000.00 6.7744 6,540,683,200.00
Non-current liabilities due within
one year
Including: USD 149,000,000.00 6.7744 1,009,385,600.00
JPY 23,176,000.00 0.0605 1,402,148.00
Including: USD 181,000,000.00 6.7744 1,226,166,400.00
155
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
EUR 105,775,601.20 7.7496 819,718,599.06
Japanese Yen 220,172,000.00 0.0605 13,320,406.00
Notes:
(2) Note to overseas entities including: for significant oversea entities, shall disclose main operating place,
recording currency and selection basis, if there are changes into recording currency, shall also disclose the
reason.
□ Applicable √ Not applicable
79. Hedging
Hedging items disclosed by category and related hedging instruments and the qualitative and quantitative information of risks:
None
80. Others
None
VIII. Change of the consolidation scope
1. Business combination involving entities now under common control
(1) Business merger not under same control in reporting period
Unit: Yuan
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
Notes:
(2) Combined cost and goodwill
Unit: Yuan
Combination cost
Note to determination method, consideration and changes of fair value of combined cost:
The main formation reason for the large goodwill:
Notes:
156
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
(3) The identifiable assets and liabilities of acquiree at purchase date
Unit: Yuan
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:
Notes:
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value
measured again
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
None
(6) Notes
None
2. Business consolidation under common control
(1) Business combination under the same control during the reporting period
Unit: Yuan
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
Notes:
(2) Combination cost
Unit: Yuan
157
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
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
Unit: Yuan
Combination date Distribution rate at end of the period
Contingent liabilities of the combined party undertaken in combination:
Notes:
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:
None
5. Others
None
IX. Equity in other entities
1. Equity in subsidiaries
(1) Constitution of enterprise group
Name of the Principal place of Registered Nature of Proportion of shares held (%) Acquiring
158
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
subsidiaries business address business Direct Indirect method
Business
Xiamen Bengang
consolidation
Steel & Iron Sales Xiamen Xiamen Sales 100.00%
under common
Co., Ltd.
control
Business
Wuxi Bengang
consolidation
Steel & Iron Sales Wuxi Wuxi Sales 100.00%
under common
Co., Ltd.
control
Business
Tianjin Bengang
consolidation
Steel & Iron Tianjin Tianjin Sales 100.00%
under common
Trading Co., Ltd.
control
Business
Nanjing Bengang
consolidation
Steel Material Nanjing Nanjing Sales 100.00%
under common
Sales Ltd.
control
Business
Yantai Bengang
consolidation
Steel & Iron Sales Yantai Yantai Sales 100.00%
under common
Co., Ltd.
control
Business
Harbin Bengang
consolidation
Economic and Harbin Harbin Sales 100.00%
under common
Trading Co., Ltd.
control
Changchun Business
Bengang Steel & consolidation
Changchun Changchun Sales 100.00%
Iron Sales Co., under common
Ltd. control
Guangzhou
Bengang Steel &
Guangzhou Guangzhou Sales 100.00% Establishment
Iron Trading Co.,
Ltd.
Shanghai
Bengang
Metallurgy
Shanghai Shanghai Sales 100.00% Establishment
Science and
Technology Co.,
Ltd.
Bengang Steel
Liaoyang Liaoyang Manufacturing 100.00% Establishment
Plate Liaoyang
159
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Orel Ball Co.,
Ltd.
Dalian
Benruitong
Automobile
Dalian Dalian Manufacturing 65.00% Establishment
Material
Technologies Co.,
Ltd.
Bengang Puxiang Business
Cool Rolling consolidation
Benxi Benxi Manufacturing 75.00%
Steel Sheet Co., under common
Ltd. control
Benxi Bengang
Steel Sales Co., Benxi Benxi Sales 100.00% Establishment
Ltd
Shenyang
Bengang
Metallurgical
Shenyang Shenyang Sales 100.00% Establishment
Science and
Technology Co.,
Ltd.
Bengang Baojin
(Shenyang)
Shenyang Shenyang Sales 85.00% Establishment
Automobile New
Material Co., Ltd
Notes:
None
Basis of determine the Company control the investee while holding half or less voting rights and basis of determine the Company
does not control while holding more than half voting rights:
None
Basis of control to structured entity included in the consolidation scope:
None
Basis of determine whether the Company is the agent or the principal:
None
Notes:
None
(2) Significant not wholly-owned subsidiaries
Unit: Yuan
Name of the subsidiaries Proportion of Profits and losses Dividend declared to Ending balance of
160
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
non-controlling interests attributing to distribute to non-controlling interests
(%) non-controlling non-controlling
shareholders shareholders
Bengang Puxiang Cool
Rolling Steel Sheet Co., 25.00% 7,001,363.17 34,024,878.25 495,896,015.95
Ltd.
Dalian Benruitong
Automobile Material 35.00% -677,807.69 26,010,970.18
Technologies Co., Ltd.
Holding proportion of minority shareholder in subsidiary different from voting proportion:
None
Notes:
None
(3) The main financial information of significant not wholly owned subsidiary
Unit: Yuan
Name of Ending balance Beginning balance
the Non-curr Current Non-curr Non-curr Current Non-curr
Current Total Total Current Total Total
subsidiar ent Liabilitie ent ent Liabilitie ent
assets assets liabilities assets assets liabilities
ies assets s liabilities assets s liabilities
Bengang
Puxiang
Cool
2,050,71 2,159,34 4,210,05 2,226,47 2,226,47 2,110,62 2,306,99 4,417,62 2,327,57 2,327,57
Rolling
1,701.48 3,225.82 4,927.30 0,863.51 0,863.51 9,548.42 6,743.92 6,292.34 2,997.38 2,997.38
Steel
Sheet
Co., Ltd.
Dalian
Benruito
ng
Automo
119,006, 157,858, 276,865, 202,548, 202,548, 188,167, 161,544, 349,712, 273,458, 273,458,
bile
557.85 619.47 177.32 119.65 119.65 707.25 880.30 587.55 936.47 936.47
Material
Technolo
gies Co.,
Ltd.
Unit: Yuan
January to June 2017 January to June 2016
Name of the
Total Net cash Total Net cash
subsidiaries Turnover Net Profit Turnover Net Profit
comprehensi flows from comprehensi flows from
161
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
ve income operating ve income operating
activities activities
Bengang
Puxiang Cool
3,953,643,06 28,005,452.6 28,005,452.6 -44,864,088.8 2,592,071,40 99,409,153.7 99,409,153.7 58,017,011.9
Rolling Steel
9.30 8 8 1 0.46 7 7 7
Sheet Co.,
Ltd.
Dalian
Benruitong
Automobile 84,612,504.0 16,421,759.6 137,623,373. -12,791,423.7
-1,936,593.41 -1,936,593.41 -3,127,791.12 -3,127,791.12
Material 6 5 15 9
Technologies
Co., Ltd.
Notes:
None
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
None
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
None
Notes:
None
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
Unit: Yuan
Notes
162
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Proportion of shares held (%) Accounting
treatment of the
Principal place of Registered Nature of investment of
Name
business address business Direct Indirect 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
Unit: Yuan
Ending balance/January to June 2017 Beginning balance/January to June 2016
Notes
(3) Major financial information of significant joint venture
Unit: Yuan
Ending balance/current period Beginning balance/previous period
Notes
(4) Main financial information of significant associated enterprise
Unit: Yuan
Ending balance/current period Beginning balance/previous 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
Notes
163
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
(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
Unit: Yuan
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
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
Principal place of Proportion /share portion
Name Registered address Nature of business
business Direct Indirect
Notes to holding proportion or share portion in common operation different from voting proportion:
Basis of common operation as a single entity, classify as common operation:
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. Others
X. Risks associated with financial instruments
1. Credit risk
Credit risk refers to a financial loss to a party due to failure to discharge an obligation by the counterparties.
The Company is exposed to credit risk arising from customers’ failure to discharge an obligation in sales on
credit. In order to minimize the credit risk, the management of the Company is responsible for determination
of credit limits, credit approvals and other monitoring procedures to ensure that follow-up actions are taken to
recover overdue debts.
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
164
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
restricted client list. The Company can only sell to these customers on credit with additional approval;
otherwise the Company must ask for a corresponding deposit in advance.
2. Market risk
Market risk of financial instruments refers to fluctuations of fair value or future cash flows due to market
price changes, including currency risk, interest rate risk, and other price risk.
1. Interest rate risk
Interest rate risk refers to fluctuations of fair value or future cash flows due to market rate changes. The
Company’s exposure to currency risk is primarily arising from variable-rate bank balances and variable-rate
borrowings. Currently, the Company does not have a specific policy to manage its interest rate risk. The
management will carefully choose financing methods, and combine fixed interest rate with variable interest
rate, short-term obligations with long-term obligations. By using effective interest rate risk management
methods, the Company closely monitors interest rate risk and will consider interest-rate swaps to acquire an
expected structure of interest rates shall the need arise.
Although these measures may not 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.
The currency risk facing the Company originates from the assets and liabilities measured by US dollars, Euro,
Hong Kong dollars and Japanese Yen. The ending balance of the assets and liabilities after converted in RMB
is shown as below:
Unit: RMB 10,000
Ending balance
Items
USD Euro HKD Japanese Yen Total
Assets 323,765.00 68,064.45 87.58 391,917.02
Liabilities 877,623.52 81,971.86 1,472.26 961,067.64
The table below shows the sensitivity analysis of RMB vs. other currencies when RMB deprecated or
appreciated by 5% over other currencies under the assumption that other variables remain the same. 5% is the
sensitivity rate used by the management for internal report of currency risk and it represents the estimation of
the management over the possible change of foreign currency. Sensitivity analysis only includes the monetary
165
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
items measured by foreign currency unpaid and will be adjusted at the year-end by 5%. The positive figures
reflect the increase of profit by 5% and the negative figures indicate the reduction of profit.
Unit: RMB 10,000
Ending balance
Items Impact on Impact on
Impact on USD Impact on Euro Total
HKD Japanese Yen
Appreciation by 5% -12,141.19 2,552.42 3.28 -55.21 -9,640.70
Depreciation by 5% 12,141.19 -2,552.42 -3.28 55.21 9,640.70
3. Liquidity risk
Liquidity risk refers to the risk of shortage of funds which occurs in fulfilling the obligation of settlement in a
manner of delivering cash or other financial assets. The Company’s policy is to maintain sufficient cash to
meet maturing obligations. Liquidity risk is centralized controlled by the Company’s finance department.
Through the monitoring of unrestricted cash and cash equivalents, bank acceptance bills due in short time and
the continues forecasting of cash flow in the next 12 months, the finance department ensures that the
Company has sufficient cash to meet obligations in all predicted reasonable circumstances.
The following table details the Company’s mature date of residual contract value of un-derivative 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.
Unit: RMB 10,000
Ending balance
Items
Within 1 year 1-2 years 2-5 years Over 5 years Total
Trade and other payables 630,502.58 120,022.87 80,242.31 30,122.01 860,889.77
Loans and interests 2,389,846.21 99,468.00 133,086.83 83,578.98 2,705,980.03
Bonds payable 157,755.00 157,755.00
Total 3,178,103.79 219,490.87 213,329.14 113,701.00 3,724,624.80
XI. The disclosure of the fair value
1. Ending fair value of assets and liabilities calculated by fair value
Unit: Yuan
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
1. Consistent fair value -- -- -- --
166
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
measurement
2. 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 2
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. Others
XII. Related party transactions
1. Details of parent company
(In 100 Million Yuan)
Name of parent
Registered address Nature of business Registered capital Share proportion (%) Voting rights (%)
company
Benxi Steel & Iron
Benxi Manufacturing 53.69 77.88% 77.88%
(Group) Co., Ltd.
Bengang Group Co.,
Benxi Manufacturing 180 77.88% 77.88%
Ltd.
Note:
The parent company of Benxi Steel (Group) Co., Ltd. is Bengang Group Co., Ltd.
The ultimate controlling party of the Company is the State-owned Assets Supervision and Administration Commission of Liaoning
Province.
2. Details of the subsidiaries
For details of subsidiaries of the Company please refer to Note “Equity in other entities”.
167
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
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. Details of other related parties
Name of Other related parties Relationship
Bengang Group International Economic and Trading Co., Ltd. Both belong to Bengang Group Co., Ltd.
Bengang Cold-rolled Stainless Steel Dandong Co., Ltd. Same parent company
Benxi Beiying Steel & Iron (Group) Co., Ltd. Both belong to Bengang Group Co., Ltd.
Bengang Electronics and Gas Co., Ltd. Both belong to Benxi Steel and Iron (Group) Co., Ltd.
Benxi Steel & Iron (Group) Real-estate Development Co., Ltd. Same parent company
Benxi Steel & Iron (Group) Steel & Iron Process and Logistics
Same parent company
Co., Ltd.
Benxi Steel & Iron (Group) Machinery Manufacture Co., Ltd. Same parent company
Benxi Steel & Iron (Group) Construction Co., Ltd. Same parent company
Benxi Steel & Iron (Group) Mining Co., Ltd. Same parent company
Benxi Steel & Iron (Group) Thermal Power Development Co.,
Same parent company
Ltd.
Benxi Steel & Iron (Group) Designing Institute Same parent company
Benxi Steel & Iron (Group) Industrial Development Co., Ltd. Same parent company
Benxi Steel & Iron (Group) Information and Automatic Tech Co.,
Same parent company
Ltd.
Benxi Steel & Iron (Group) Construction and Repairing Co., Ltd. Same parent company
Benxi Steel & Iron (Group) Metallurgy Residues Co., Ltd. Same parent company
Benxi Steel & Iron (Group) Plant Construction Supervisor Co.,
Same parent company
Ltd.
Benxi Steel & Iron (Group) Zhengtai Construction Materials Co.,
Same parent company
Ltd.
Benxi High-tech Drilling Tools Manufacture Co., Ltd. Both belong to Bengang Group Co., Ltd.
Benxi New Career Development Co., Ltd. Same parent company
Dalian Boluole Steel Tube Co., Ltd. Both belong to Benxi Steel and Iron (Group) Co., Ltd.
Guangzhou Free Trade Zone Bengang Sales Co., Ltd. Both belong to Benxi Steel and Iron (Group) Co., Ltd.
168
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Liaoning Bengang Steel & Iron Trading Co., Ltd. Same parent company
Liaoning Hengtai Heavy Machinery Co., Ltd. Same parent company
Liaoning Hengtong Metallurgical Equipment Manufacture Co.,
Same parent company
Ltd.
Liaoning Metallurgy Technician College Same parent company
Liaoning Metallurgy Technician College Same parent company
Suzhou Bengang Industrial Co., Ltd. Shareholding company
Shanghai Bengang Steel & Iron Trade Co., Ltd. Both belong to Benxi Steel and Iron (Group) Co., Ltd.
Benxi Steel & Iron(Group) Medical Department Both belong to Benxi Steel and Iron (Group) Co., Ltd.
Bengang Group Finance Co., Ltd. Both belong to Bengang Group Co., Ltd.
Liaoning Hengyi Financial Leasing Co., Ltd. Both belong to Bengang Group Co., Ltd.
Notes
5. Related Party Transactions
(1) Related party transactions of purchasing goods and services
Company as the purchaser
Unit: Yuan
The content of
January to June The approved trade Whether exceed trade
Name related party January to June 2016
2017 credit credit or not
transactions
Benxi Steel & Iron Accounts payable
127,818,662.00 350,000,000.00 No 142,914,791.40
(Group) Co., Ltd. for repair
Benxi Steel & Iron
Land leasing fee 27,345,714.30 No 28,257,238.10
(Group) Co., Ltd.
Bengang
Cold-rolled
Products 174,967.51 5,000,000.00 No 197,900.00
Stainless Steel
Dandong Co., Ltd.
Benxi Steel & Iron
(Group) Mining Labor cost 2,537,625.86 No 8,012,301.00
Co., Ltd.
Benxi Steel & Iron Raw material and
(Group) Mining supplementary 2,176,386,929.60 4,000,000,000.00 No 1,930,519,957.48
Co., Ltd. material
Benxi Steel & Iron
(Group) Mining Freight 31,783.77 No 1,442,630.61
Co., Ltd.
169
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Benxi Steel & Iron Raw material and
(Group) Metallurgy supplementary 128,200,766.66 200,000,000.00 No 57,261,826.00
Residues Co., Ltd. material
Benxi Steel & Iron
(Group) Steel &
Processing fee 761,185.36 10,000,000.00 No 867,249.53
Iron Process and
Logistics Co., Ltd.
Benxi Steel & Iron
(Group) Real-estate
Raw materials 50,067,484.09 120,000,000.00 No 36,885,463.89
Development Co.,
Ltd.
Benxi Steel & Iron
(Group) Machinery
Spare parts 55,223,576.67 300,000,000.00 No 54,201,883.14
Manufacture Co.,
Ltd.
Benxi Steel & Iron
(Group) Machinery
Repair services 3,688,668.68 No 5,302,423.00
Manufacture Co.,
Ltd.
Benxi Steel & Iron
(Group)
Spare parts 7,343,354.50 700,000,000.00 No 7,635,945.10
Construction Co.,
Ltd.
Benxi Steel & Iron
(Group)
Project fee 129,406,022.95 No 122,809,324.62
Construction Co.,
Ltd.
Benxi Steel & Iron
(Group)
Repair services 32,379,820.88 No 41,930,655.47
Construction Co.,
Ltd.
Benxi Steel & Iron
Raw material and
(Group)
supplementary 4,647,769.44 No 3,726,235.00
Construction Co.,
material
Ltd.
Benxi Steel & Iron
(Group)
Freight 1,550,379.98 No 1,392,792.26
Construction Co.,
Ltd.
Benxi Steel & Iron
Spare parts 89,056,575.46 No 12,098,061.54
(Group) Industrial
170
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Development Co.,
Ltd.
Benxi Steel & Iron
Raw material and
(Group) Industrial
supplementary 106,726,625.72 450,000,000.00 No 118,140,441.19
Development Co.,
material
Ltd.
Benxi Steel & Iron
(Group) Industrial
Repair services 11,179,880.95 No 7,004,363.38
Development Co.,
Ltd.
Benxi Steel & Iron
(Group) Industrial
Freight 1,370,590.70 No 2,870,362.41
Development Co.,
Ltd.
Benxi Steel & Iron
(Group) Industrial
Project fee 1,398,249.24 No 630,100.00
Development Co.,
Ltd.
Benxi Steel & Iron Raw material &
(Group) supplementary
1,396,647.57 250,000,000.00 No 4,131,446.44
Construction and materials & spare
Repairing Co., Ltd. parts
Benxi Steel & Iron
(Group)
Project fee 28,706,439.35 No 28,166,151.94
Construction and
Repairing Co., Ltd.
Benxi Steel & Iron
(Group) Accounts payable
21,309,880.35 No 20,660,206.00
Construction and for repair
Repairing Co., Ltd.
Bengang Raw material and
Electronics and Gas supplementary 84,260,711.25 210,000,000.00 No 53,938,969.16
Co., Ltd. material
Bengang
Electronics and Gas Project fee 419,352.41 No 1,429,583.24
Co., Ltd.
Bengang
Electronics and Gas Repair services 6,921,824.58 No 4,427,487.00
Co., Ltd.
Benxi High-tech
Spare parts 393,070.06 8,000,000.00 No 263,037.74
Drilling Tools
171
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Manufacture Co.,
Ltd.
Benxi New Career
Labor protection
Development Co., 294,457.32 20,000,000.00 No 1,183,634.68
fee
Ltd.
Liaoning
Metallurgy Spare parts 13,193,086.82 30,000,000.00 No 7,065,509.18
Technician College
Liaoning
Metallurgy Spare parts 2,303,327.48 15,000,000.00 No
Technician College
Bengang Group
International
Agency fee 36,856,843.30 360,000,000.00 No 28,513,161.47
Economic and
Trading Co., Ltd.
Bengang Group
International
Port surcharges 77,511,480.65 No 103,016,500.03
Economic and
Trading Co., Ltd.
Benxi Steel & Iron
(Group)
Information and Spare parts 6,932,300.00 80,000,000.00 No 14,300,186.79
Automatic Tech
Co., Ltd.
Benxi Steel & Iron
(Group)
Information and Repair services 3,059,417.05 No 11,808,973.00
Automatic Tech
Co., Ltd.
Benxi Steel & Iron
(Group) Thermal
Heating costs 1,686,000.00 No 6,273,973.39
Power Development
Co., Ltd.
Benxi Steel & Iron
Raw material and
(Group) Thermal
supplementary 20,000,000.00 No 33,835.74
Power Development
material
Co., Ltd.
Benxi Steel & Iron
(Group) Designing Design fees 2,359,000.00 30,000,000.00 No 4,463,442.91
Institute
Benxi Beiying Steel Raw material and 4,727,294,158.47 13,500,000,000.00 No 2,775,256,599.12
172
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
& Iron (Group) Co., supplementary
Ltd. material
Benxi Beiying Steel
& Iron (Group) Co., Energy & Power 501,840,790.72 No 186,873,654.59
Ltd.
Benxi Beiying Steel
& Iron (Group) Co., Freight 8,894,757.14 No 3,910,293.80
Ltd.
Benxi Beiying Steel
& Iron (Group) Co., Labor cost 55,630,095.04 No 26,988,500.01
Ltd.
Benxi Beiying Steel
& Iron (Group) Co., Spare parts 18,442,067.23 No 5,546,327.45
Ltd.
Liaoning Hengtong
Metallurgical
Raw material and
Equipment 106,615,430.32 180,000,000.00 No 40,450,852.53
spare parts
Manufacture Co.,
Ltd.
Liaoning Hengtai
Raw material and
Heavy Machinery 38,734,351.70 70,000,000.00 No 3,347,989.41
spare parts
Co., Ltd.
Liaoning Hengtai
Repair and labor
Heavy Machinery 6,364,702.64 No 7,594,926.00
cost
Co., Ltd.
Bengang Group Property
310,698.12 8,000,000.00 No 422,750.00
Co., Ltd. management fee
Total 8,709,027,523.89 20,916,000,000.00 No 5,924,169,936.73
Company as the seller
Unit: Yuan
The content of related party
Name January to June 2017 January to June 2016
transactions
Bengang Electronics and Gas
Energy & Power 496,261.60 506,435.79
Co., Ltd.
Raw material &
Benxi Beiying Steel & Iron
supplementary materials & 347,784,283.81 48,003,943.30
(Group) Co., Ltd.
spare parts
Benxi Beiying Steel & Iron
Products 4,973,269.68 2,200,079.70
(Group) Co., Ltd.
Benxi Beiying Steel & Iron Energy & Power 143,893,069.82 49,331,879.14
173
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
(Group) Co., Ltd.
Benxi Steel & Iron (Group)
Real-estate Development Co., Energy & Power 137,583.72 477,081.15
Ltd.
Benxi Steel & Iron (Group)
Steel & Iron Process and Energy & Power 503,015.61 288,813.78
Logistics Co., Ltd.
Benxi Steel & Iron (Group)
Steel & Iron Process and Products 42,000,927.99
Logistics Co., Ltd.
Benxi Steel & Iron (Group)
Machinery Manufacture Co., Products 4,620,747.58 6,053,249.23
Ltd.
Benxi Steel & Iron (Group)
Machinery Manufacture Co., Energy & Power 7,913,565.57 9,179,055.96
Ltd.
Benxi Steel & Iron (Group) Raw material &
Machinery Manufacture Co., supplementary materials & 514,127.97 1,514,608.74
Ltd. spare parts
Benxi Steel & Iron (Group)
Energy & Power 2,144,512.75 2,455,519.74
Construction Co., Ltd.
Raw material &
Benxi Steel & Iron (Group)
supplementary materials & 1,384,111.28 40,563,514.42
Construction Co., Ltd.
spare parts
Benxi Steel & Iron (Group)
Energy & Power 458,582,060.66 361,479,232.83
Mining Co., Ltd.
Raw material &
Benxi Steel & Iron (Group)
supplementary materials & 6,467,665.26 41,615,621.07
Mining Co., Ltd.
spare parts
Benxi Steel & Iron (Group)
Freight revenue 4,072,326.92 4,362,538.55
Mining Co., Ltd.
Benxi Steel & Iron (Group)
Thermal Power Development Energy & Power 14,523,775.89 19,598,496.83
Co., Ltd.
Benxi Steel & Iron (Group) Raw material &
Thermal Power Development supplementary materials & 685,704.00 5,333,835.74
Co., Ltd. spare parts
Benxi Steel & Iron (Group)
Thermal Power Development Freight revenue 96,738.16 82,818.57
Co., Ltd.
174
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Benxi Steel & Iron (Group)
Industrial Development Co., Energy & Power 4,053,089.03 3,316,373.17
Ltd.
Benxi Steel & Iron (Group)
Industrial Development Co., Products 126,887.14 126,431.04
Ltd.
Benxi Steel & Iron (Group) Raw material &
Industrial Development Co., supplementary materials & 27,595,285.96 28,143,989.05
Ltd. spare parts
Benxi Steel & Iron (Group)
Information and Automatic Energy & Power 83,013.82 100,709.65
Tech Co., Ltd.
Benxi Steel & Iron (Group)
Construction and Repairing Co., Energy & Power 772,159.41 477,947.47
Ltd.
Benxi Steel & Iron (Group) Raw material &
Construction and Repairing Co., supplementary materials & 98,352.61 1,141,388.99
Ltd. spare parts
Benxi Steel & Iron (Group)
Energy & Power 1,300,384.81 1,056,102.39
Metallurgy Residues Co., Ltd.
Raw material &
Benxi Steel & Iron (Group)
supplementary materials & 43,580,212.34 10,221,213.07
Metallurgy Residues Co., Ltd.
spare parts
Benxi Steel & Iron (Group)
Freight revenue 3,143.36 4,319.92
Metallurgy Residues Co., Ltd.
Benxi Steel & Iron (Group)
Products 7,126,315.80 1,553,826.03
Metallurgy Residues Co., Ltd.
Benxi Steel & Iron (Group) Co.,
Energy & Power 6,145,233.63 35,259,836.35
Ltd.
Raw material &
Benxi Steel & Iron (Group) Co.,
supplementary materials & 3,215,453.07 3,371,111.95
Ltd.
spare parts
Benxi New Career
Energy & Power 186,027.31 165,240.02
Development Co., Ltd.
Dalian Boluole Steel Tube Co.,
Products 2,237,856.57 1,532,438.22
Ltd.
Liaoning Bengang Steel & Iron
Products 460,444.50 92,983,672.54
Trading Co., Ltd.
Benxi Steel & Iron (Group)
Energy & Power 51,687.01 48,288.52
General Hospital
175
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Liaoning Hengtong
Metallurgical Equipment Energy & Power 8,991,868.63 8,449,073.80
Manufacture Co., Ltd.
Liaoning Hengtong Raw material &
Metallurgical Equipment supplementary materials & 8,797,596.07 6,514,862.48
Manufacture Co., Ltd. spare parts
Liaoning Hengtong
Metallurgical Equipment Products 8,109,275.13
Manufacture Co., Ltd.
Raw material &
Bengang Cold-rolled Stainless
supplementary materials &
Steel Dandong Co., Ltd.
spare parts
Bengang Cold-rolled Stainless
Products
Steel Dandong Co., Ltd.
Suzhou Bengang Industrial Co.,
Products 136,230,997.93 96,985,025.50
Ltd.
Bengang Group Finance Co.,
Energy & Power 7,485.42 8,150.41
Ltd.
Bengang Group Co., Ltd. Energy & Power 76,301.79 28,820.54
Total 1,249,932,616.48 934,645,748.77
Related party transactions of purchasing goods and services Notes
None
(2) Related trusteeship/contract
Lists of related trusteeship/contract:
Unit: Yuan
Income
Name of the Name of the
Type Initial date Due date Pricing basis recognized in the
entruster/contractee entrustee/contractor
reporting period
Notes
None
Lists of entrust/contractee:
Unit: Yuan
Change
Name of the Name of the
Type Initial date Due date Pricing basis recognized in the
entruster/contractee entrustee/contractor
reporting period
Notes
None
176
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
(3) Lease information of related parties
Company as the lessor:
Unit: Yuan
The lease income confirmed in The lease income confirmed in
Lessee Lease capital category
this year last year
Benxi Steel & Iron (Group)
Steel & Iron Process and Warehouse and machinery 250,000.00 158,500.00
Logistics Co., Ltd.
Benxi Steel & Iron (Group)
Machinery Manufacture Co., Plants and machinery 244,805.87
Ltd.
Company as the lessee:
Unit: Yuan
Lessor Lease capital category Lease charges of 2016 Lease charges of 2015
Benxi Steel & Iron (Group) Co.,
2300 Hot rolling product line 120,000,000.00 120,000,000.00
Ltd.
Benxi Steel & Iron (Group) Co.,
Land use right 27,345,714.30 28,257,238.10
Ltd.
Benxi Beiying Steel & Iron
1780 Hot rolling product line 77,816,940.06 65,950,200.00
(Group) Co., Ltd.
Notes:
1. The Company leases 2300 hot rolling product line from the Group. Lease period lasts from 1 January 2015 to 31 December 2017.
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 from 1
January 2017 to 31 December 2019. Lease charges are negotiated between the lessor and the lessee based on the original cost,
depreciation, and national taxation of the product line, with consideration of conditions of production and equipment performance.
(4) Information of Guarantee among related parties
Company as the warrantor
Unit: Yuan
Starting date of Has the guarantee been
Secured party Guarantee amount Ending date of Guarantee
Guarantee fulfilled
Company as the warrantee
177
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Unit: Yuan
Starting date of Has the guarantee been
Warrantor Guarantee amount Ending date of Guarantee
Guarantee fulfilled
Bengang Group Co., Ltd.
and Benxi Steel & Iron 200,000,000.00 2016/11/10 2017/9/13 No
(Group) Co., Ltd.
Bengang Group Co., Ltd.
and Benxi Steel & Iron 100,000,000.00 2016/11/9 2017/8/23 No
(Group) Co., Ltd.
Bengang Group Co., Ltd.
and Benxi Steel & Iron 200,000,000.00 2016/11/9 2017/8/17 No
(Group) Co., Ltd.
Bengang Group Co., Ltd.
and Benxi Steel & Iron 150,000,000.00 2016/11/11 2017/10/19 No
(Group) Co., Ltd.
Bengang Group Co., Ltd.
and Benxi Steel & Iron 200,000,000.00 2016/11/11 2017/10/12 No
(Group) Co., Ltd.
Bengang Group Co., Ltd.
and Benxi Steel & Iron 200,000,000.00 2016/11/15 2017/11/8 No
(Group) Co., Ltd.
Bengang Group Co., Ltd.
and Benxi Steel & Iron 200,000,000.00 2016/11/16 2017/11/15 No
(Group) Co., Ltd.
Bengang Group Co., Ltd.
and Benxi Steel & Iron 200,000,000.00 2016/12/8 2017/12/7 No
(Group) Co., Ltd.
Bengang Group Co., Ltd.
and Benxi Steel & Iron 80,000,000.00 2016/12/6 2017/12/5 No
(Group) Co., Ltd.
Bengang Group Co., Ltd.
and Benxi Steel & Iron 200,000,000.00 2016/12/13 2017/12/12 No
(Group) Co., Ltd.
Bengang Group Co., Ltd. 150,000,000.00 2016/7/22 2017/7/22 No
Bengang Group Co., Ltd. 150,000,000.00 2016/7/21 2017/7/21 No
Bengang Group Co., Ltd. 230,000,000.00 2016/8/12 2017/8/12 No
Bengang Group Co., Ltd. 490,000,000.00 2016/8/19 2017/8/18 No
Bengang Group Co., Ltd. 180,000,000.00 2016/8/5 2017/8/5 No
Bengang Group Co., Ltd. 200,000,000.00 2016/8/12 2017/8/12 No
178
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Bengang Group Co., Ltd. 170,000,000.00 2016/8/5 2017/8/5 No
Bengang Group Co., Ltd. 220,000,000.00 2016/8/5 2017/8/5 No
Bengang Group Co., Ltd. 250,000,000.00 2016/10/20 2017/10/20 No
Bengang Group Co., Ltd. 250,000,000.00 2016/10/20 2017/10/20 No
Bengang Group Co., Ltd. 100,000,000.00 2016/9/29 2017/8/1 No
Bengang Group Co., Ltd. 140,000,000.00 2017/5/19 2018/5/19 No
Bengang Group Co., Ltd. 200,000,000.00 2017/5/19 2018/5/19 No
Bengang Group Co., Ltd. 200,000,000.00 2017/5/19 2018/5/19 No
Bengang Group Co., Ltd. 160,000,000.00 2017/5/19 2018/5/19 No
Bengang Group Co., Ltd. 150,000,000.00 2017/1/13 2018/1/13 No
Bengang Group Co., Ltd. 110,000,000.00 2017/1/13 2018/1/13 No
Bengang Group Co., Ltd. 200,000,000.00 2017/3/24 2018/3/24 No
Bengang Group Co., Ltd. 168,000,000.00 2017/6/9 2018/6/9 No
Bengang Group Co., Ltd. 300,000,000.00 2017/5/17 2018/5/16 No
Bengang Group Co., Ltd. 200,000,000.00 2017/5/17 2018/5/16 No
Bengang Group Co., Ltd. 135,000,000.00 2017/1/20 2018/1/19 No
Bengang Group Co., Ltd. 500,000,000.00 2017/6/23 2018/6/23 No
Benxi Steel & Iron
74,000,000.00 2016/9/28 2017/9/27 No
(Group) Co., Ltd.
Benxi Steel & Iron
150,000,000.00 2017/5/16 2018/5/15 No
(Group) Co., Ltd.
Benxi Steel & Iron
74,000,000.00 2017/5/24 2018/5/23 No
(Group) Co., Ltd.
Benxi Steel & Iron
270,000,000.00 2017/1/17 2018/1/16 No
(Group) Co., Ltd.
Benxi Steel & Iron
400,000,000.00 2017/2/16 2018/2/15 No
(Group) Co., Ltd.
Benxi Steel & Iron
200,000,000.00 2017/1/12 2018/1/11 No
(Group) Co., Ltd.
Benxi Steel & Iron
400,000,000.00 2017/4/25 2017/7/24 No
(Group) Co., Ltd.
Benxi Steel & Iron
500,000,000.00 2017/4/28 2017/7/27 No
(Group) Co., Ltd.
Benxi Steel & Iron
460,000,000.00 2017/4/28 2017/11/27 No
(Group) Co., Ltd.
Benxi Steel & Iron 170,000,000.00 2017/5/27 2018/1/26 No
179
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
(Group) Co., Ltd.
Benxi Steel & Iron
700,000,000.00 2017/2/27 2025/2/20 No
(Group) Co., Ltd.
Bengang Group Co., Ltd. 677,440,000.00 2016/8/19 2017/8/14 No
Benxi Steel & Iron
697,763,200.00 2016/9/30 2017/9/29 No
(Group) Co., Ltd.
Benxi Steel & Iron
1,016,160,000.00 2016/9/28 2017/9/27 No
(Group) Co., Ltd.
Benxi Steel & Iron
152,424,000.00 2016/12/23 2017/12/22 No
(Group) Co., Ltd.
Benxi Steel & Iron
609,696,000.00 2017/5/19 2018/5/18 No
(Group) Co., Ltd.
Benxi Steel & Iron
697,763,200.00 2017/5/19 2018/5/15 No
(Group) Co., Ltd.
Benxi Steel & Iron
1,016,160,000.00 2017/5/19 2018/5/8 No
(Group) Co., Ltd.
Benxi Steel & Iron
677,440,000.00 2017/2/24 2018/2/23 No
(Group) Co., Ltd.
Bengang Group Co., Ltd. 207,635,360.00 2016/12/27 2020/6/21 No
Bengang Group Co., Ltd. 677,440,000.00 2016/8/3 2018/8/28 No
Bengang Group Co., Ltd. 325,171,200.00 2016/7/14 2018/7/12 No
Bengang Group Co., Ltd. 338,720,000.00 2016/6/21 2018/6/20 No
Bengang Group Co., Ltd. 541,952,000.00 2016/5/30 2018/5/18 No
Bengang Group Co., Ltd. 128,713,600.00 2016/4/28 2018/4/18 No
Bengang Group Co., Ltd. 2,065,483.30 2015/6/25 2025/9/30 No
Bengang Group Co., Ltd. 70,566,803.65 2015/8/20 2025/9/30 No
Bengang Group Co., Ltd. 9,255,928.50 2015/8/20 2019/9/30 No
Bengang Group Co., Ltd. 47,756.76 2015/6/25 2026/4/30 No
Bengang Group Co., Ltd. 4,902,478.41 2015/6/25 2026/4/30 No
Bengang Group Co., Ltd. 31,533.97 2015/12/28 2026/4/30 No
Bengang Group Co., Ltd. 59,717,848.78 2015/12/28 2026/4/30 No
Bengang Group Co., Ltd. 25,161,064.71 2015/6/25 2020/4/30 No
Bengang Group Co., Ltd. 8,998,273.67 2015/12/28 2020/4/30 No
Bengang Group Co., Ltd. 4,326,100.67 2015/6/25 2025/6/30 No
Bengang Group Co., Ltd. 123,705,935.08 2015/6/25 2025/6/30 No
Bengang Group Co., Ltd. 3,797,480.46 2015/12/28 2025/6/30 No
180
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Bengang Group Co., Ltd. 22,333,519.70 2015/6/25 2019/6/30 No
Bengang Group Co., Ltd. 15,984,345.19 2015/12/28 2019/6/30 No
Bengang Group Co., Ltd. 5,572,548.89 2015/6/25 2025/10/31 No
Bengang Group Co., Ltd. 88,488,280.86 2015/6/25 2025/10/31 No
Bengang Group Co., Ltd. 40,562,264.44 2015/12/28 2025/10/31 No
Bengang Group Co., Ltd. 35,828,162.52 2015/6/25 2019/10/31 No
Bengang Group Co., Ltd. 687,486.16 2015/12/28 2019/10/31 No
Bengang Group Co., Ltd. 4,721,803.46 2015/6/25 2025/8/31 No
Bengang Group Co., Ltd. 106,871,392.51 2015/6/25 2025/8/31 No
Bengang Group Co., Ltd. 2,241,804.29 2015/12/28 2025/8/31 No
Bengang Group Co., Ltd. 28,100,818.36 2015/6/25 2019/8/31 No
Bengang Group Co., Ltd. 3,706,999.93 2015/12/28 2019/8/31 No
Bengang Group Co., Ltd. 9,951,765.08 2015/12/28 2019/7/30 No
Bengang Group Co., Ltd. 5,304,591.51 2016/6/27 2020/4/30 No
Bengang Group Co., Ltd. 32,734,871.86 2016/6/27 2020/4/30 No
Bengang Group Co., Ltd. 24,883,510.54 2016/12/14 2026/4/30 No
Bengang Group Co., Ltd. 472,947.08 2016/12/14 2020/4/30 No
Benxi Steel & Iron
14,021,480.00 1997/10/10 2027/9/10 No
(Group) Co., Ltd.
Bengang Group Co.,
Ltd.；Benxi Steel & Iron 100,000,000.00 2016/3/30 2025/3/20 No
(Group) Co., Ltd.
Bengang Group Co., Ltd. 100,000,000.00 2016/3/31 2018/3/31 No
Bengang Group Co., Ltd. 59,140,000.00 2015/3/26 2019/3/21 No
Bengang Group Co., Ltd. 100,000,000.00 2015/6/25 2021/9/21 No
Bengang Group Co., Ltd. 24,000,000.00 2015/12/9 2022/3/21 No
Bengang Group Co., Ltd. 72,150,000.00 2016/12/27 2020/6/21 No
Bengang Group Co., Ltd. 15,919,840.00 2016/12/27 2020/6/21 No
Bengang Group Co., Ltd. 258,185.44 2015/6/25 2025/9/30 No
Bengang Group Co., Ltd. 8,820,850.46 2015/8/20 2025/9/30 No
Bengang Group Co., Ltd. 4,627,964.25 2015/8/20 2019/9/30 No
Bengang Group Co., Ltd. 582,380.58 2015/6/25 2026/4/30 No
Bengang Group Co., Ltd. 7,029,339.16 2015/12/28 2026/4/30 No
Bengang Group Co., Ltd. 10,064,425.90 2015/6/25 2020/4/30 No
Bengang Group Co., Ltd. 3,599,309.47 2015/12/28 2020/4/30 No
181
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Bengang Group Co., Ltd. 576,813.42 2015/6/25 2025/6/30 No
Bengang Group Co., Ltd. 16,494,124.65 2015/6/25 2025/6/30 No
Bengang Group Co., Ltd. 506,330.73 2015/12/28 2025/6/30 No
Bengang Group Co., Ltd. 14,889,013.08 2015/6/25 2019/6/30 No
Bengang Group Co., Ltd. 10,656,230.07 2015/12/28 2019/6/30 No
Bengang Group Co., Ltd. 11,757,603.69 2015/6/25 2025/10/31 No
Bengang Group Co., Ltd. 5,070,283.05 2015/12/28 2025/10/31 No
Bengang Group Co., Ltd. 17,914,081.22 2015/6/25 2019/10/31 No
Bengang Group Co., Ltd. 343,743.20 2015/12/28 2019/10/31 No
Bengang Group Co., Ltd. 13,949,149.50 2015/6/25 2025/8/31 No
Bengang Group Co., Ltd. 280,225.54 2015/12/28 2025/8/31 No
Bengang Group Co., Ltd. 14,050,409.18 2015/6/25 2019/8/31 No
Bengang Group Co., Ltd. 1,853,499.96 2015/12/28 2019/8/31 No
Bengang Group Co., Ltd. 4,975,882.54 2015/12/28 2019/7/30 No
Bengang Group Co., Ltd. 2,121,836.61 2016/6/27 2020/4/30 No
Bengang Group Co., Ltd. 3,851,161.40 2016/6/27 2020/4/30 No
Bengang Group Co., Ltd. 2,927,471.85 2016/12/14 2026/4/30 No
Bengang Group Co., Ltd. 189,178.74 2016/12/14 2020/4/30 No
Benxi Steel & Iron
1,402,148.00 1997/10/10 2027/9/10 No
(Group) Co., Ltd.
Bengang Group Co., Ltd. 27,860,000.00 2015/3/26 2019/3/21 No
Bengang Group Co., Ltd. 17,850,000.00 2016/12/27 2020/6/21 No
Bengang Group Co., Ltd. 340,000,000.00 2016/8/25 2017/8/24 No
Bengang Group Co., Ltd. 220,000,000.00 2016/10/20 2017/10/20 No
Bengang Group Co.,
Ltd., Benxi Steel & Iron 200,000,000.00 2016/7/29 2017/7/26 No
(Group) Co., Ltd.
Bengang Group Co.,
Ltd., Benxi Steel & Iron 100,000,000.00 2016/10/25 2017/10/23 No
(Group) Co., Ltd.
Bengang Group Co., Ltd. 500,000,000.00 2016/11/10 2017/8/1
Information of Guarantee among related parties
The warrantors provide guarantee for the Company’s outstanding bank loans.
(5) Inter-bank lending of capital of related parties
Unit: Yuan
182
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Amount borrowed and
Name Date of value Maturity date Notes
loaned
Borrowed
Benxi Steel & Iron
14,220,000.00 2017/1/17 2018/1/16
(Group) Co., Ltd.
Benxi Steel & Iron
19,000,000.00 2017/6/14 2018/6/13
(Group) Co., Ltd.
Benxi Steel & Iron
11,369,400.00 2017/6/22 2018/6/21
(Group) Co., Ltd.
Benxi Steel & Iron
32,700,000.00 2016/10/24 2017/10/23
(Group) Co., Ltd.
Benxi Steel & Iron
22,120,000.00 2016/11/11 2017/11/10
(Group) Co., Ltd.
Loaned
99,409,400.00
(6) Related party asset transfer and debt restructuring
Unit: Yuan
The content of related party
Name January to June 2017 January to June 2016
transactions
(7) Remuneration of key management personnel
Unit: Yuan
Items January to June 2017 January to June 2016
(8) Other related party transactions
(1) Loan from and deposits in Bengang Group Finance Co., Ltd. Unit: RMB 10,000
Items Beginning balance Increase Decrease Ending balance Nature
Deposits 366,863.85 4,656,434.34 4,439,792.54 583,505.65
6. Receivables and payables of the related parties
(1) Receivables of the Company
Unit: Yuan
Ending balance Beginning balance
Items Name Name
Carrying amount Provision for bad Carrying amount Provision for bad
183
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
debts debts
Benxi Beiying Steel
Accounts receivable & Iron (Group) Co., 17,732,985.04 18,392,217.28
Ltd.
Bengang Electronics
Accounts receivable 2,518,970.91 191,192.77 2,544,096.41 191,192.77
and Gas Co., Ltd.
Benxi Steel & Iron
(Group) Machinery
Accounts receivable 52,584,877.55 6,252,766.59 58,688,479.41 6,978,534.14
Manufacture Co.,
Ltd.
Benxi Steel & Iron
(Group)
Accounts receivable 20,465,486.44 16,953,842.92 27,591,781.37 16,953,842.92
Construction Co.,
Ltd.
Benxi Steel & Iron
(Group) Industrial
Accounts receivable 20,767,168.35 2,160,167.07 43,138,986.20 2,160,167.07
Development Co.,
Ltd.
Benxi New Career
Accounts receivable Development Co., 5,101,491.42 4,493,529.85 6,021,519.36 4,493,529.85
Ltd.
Benxi Steel & Iron
(Group) Thermal
Accounts receivable 1,707,735.13 7,065,515.62
Power Development
Co., Ltd.
Benxi Steel & Iron
(Group) Steel & Iron
Accounts receivable 411,752.60 499,596.68
Process and
Logistics Co., Ltd.
Bengang Cold-rolled
Accounts receivable Stainless Steel 167,403.11 10,273.91 205,478.22 10,273.91
Dandong Co., Ltd.
Liaoning Hengtong
Metallurgical
Accounts receivable Equipment 9,987,621.61 9,777,694.51
Manufacture Co.,
Ltd.
Bengang Group
International
Accounts receivable 16,116,883.06 19,014,727.54
Economic and
Trading Co., Ltd.
184
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Subtotal: 147,562,375.22 30,061,773.11 192,940,092.60 30,787,540.66
Benxi Beiying Steel
Prepayments & Iron (Group) Co., 336,897,265.03 209,639,029.05
Ltd.
Benxi Steel & Iron
(Group) Machinery
Prepayments 12,986,662.13 9,675,956.28
Manufacture Co.,
Ltd.
Bengang Cold-rolled
Prepayments Stainless Steel 22,451.35 47,265.99
Dandong Co., Ltd.
Subtotal: 349,906,378.50 219,362,251.32
Benxi Steel & Iron
(Group) Real-estate
Other receivables 2,511,984.11 173,991.52 2,797,309.70 173,991.52
Development Co.,
Ltd.
Liaoning Metallurgy
Other receivables 132,501.57 156,265.86 156,265.86 156,265.86
Technician College
Benxi Steel & Iron
(Group) Machinery
Other receivables 4,610,543.21 55.08 658,020.63 55.08
Manufacture Co.,
Ltd.
Benxi Steel & Iron
(Group)
Other receivables 1,041,994.41 885,014.32 1,218,997.41 885,014.32
Construction Co.,
Ltd.
Bengang Group
International
Other receivables 15,997,051.61 2,000.00 12,953,078.23 2,000.00
Economic and
Trading Co., Ltd.
Benxi Steel & Iron
(Group) Industrial
Other receivables 598,678.69 326,757.79 482,278.78 326,757.79
Development Co.,
Ltd.
Benxi Steel & Iron
(Group) Zhengtai
Other receivables 191,491.57 140,059.31 198,482.11 140,059.31
Construction
Materials Co., Ltd.
Benxi Steel & Iron
Other receivables 773,464.11 611,332.98 904,953.91 611,332.98
(Group) Medical
185
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Department
Subtotal: 25,857,709.29 2,295,476.86 19,369,386.63 2,295,476.86
(2) Payables of the Company
Unit: Yuan
Items Name Name Ending balance Beginning balance
Benxi Steel & Iron (Group)
Notes payable Industrial Development Co., 20,404,409.86 28,192,278.69
Ltd.
Benxi Steel & Iron (Group)
Notes payable Machinery Manufacture Co., 49,168,681.00 31,824,694.29
Ltd.
Bengang Electronics and Gas
Notes payable 2,303,662.21 307,463.98
Co., Ltd.
Benxi Steel & Iron (Group)
Notes payable Construction and Repairing Co., 2,041,572.16
Ltd.
Liaoning Metallurgy Technician
Notes payable 6,204,029.01
College
Benxi Steel & Iron (Group)
Notes payable 568,740,355.56
Mining Co., Ltd.
Benxi Steel & Iron (Group)
Notes payable 2,779,709.03 1,963,555.75
Construction Co., Ltd.
Benxi Steel & Iron (Group)
Notes payable Information and Automatic 2,980,712.19 646,271.77
Tech Co., Ltd.
Benxi Beiying Steel & Iron
Notes payable 320,987,663.93
(Group) Co., Ltd.
Liaoning Hengtong
Notes payable Metallurgical Equipment 57,117,975.37
Manufacture Co., Ltd.
Liaoning Metallurgy Technician
Notes payable 410,420.63
College
Liaoning Hengtai Heavy
Notes payable 664,260.60
Machinery Co., Ltd.
Benxi Steel & Iron (Group)
Notes payable 1,461,822.77
Metallurgy Residues Co., Ltd.
Subtotal 398,624,838.22 699,574,700.58
186
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Bengang Electronics and Gas
Accounts payable 14,136,459.51 14,363,839.08
Co., Ltd.
Benxi Steel & Iron (Group)
Accounts payable Real-estate Development Co., 887,095.04 3,481,794.33
Ltd.
Bengang Group International
Accounts payable 790,278,853.89 1,332,351,145.92
Economic and Trading Co., Ltd.
Benxi Steel & Iron (Group)
Accounts payable Machinery Manufacture Co., 131,292,835.12 153,595,680.56
Ltd.
Benxi Steel & Iron (Group)
Accounts payable 159,279,391.32 122,639,049.77
Construction Co., Ltd.
Benxi Steel & Iron (Group)
Accounts payable 911,756,652.03 875,832,744.08
Mining Co., Ltd.
Benxi Steel & Iron (Group)
Accounts payable Industrial Development Co., 88,584,398.24 89,661,554.50
Ltd.
Benxi New Career
Accounts payable 6,531,844.53 10,111,480.54
Development Co., Ltd.
Benxi Steel & Iron (Group)
Accounts payable Construction and Repairing Co., 127,539,632.47 112,970,904.61
Ltd.
Benxi Steel & Iron (Group)
Accounts payable 5,505,610.62 4,428,544.35
Designing Institute
Benxi Steel & Iron (Group)
Accounts payable 57,947,618.34 67,838,466.80
Metallurgy Residues Co., Ltd.
Benxi Steel & Iron (Group)
Accounts payable 20,877.51 20,440.35
Medical Department
Benxi Steel & Iron (Group)
Accounts payable Information and Automatic 46,163,591.79 40,858,004.25
Tech Co., Ltd.
Benxi High-tech Drilling Tools
Accounts payable 652,188.35 545,111.09
Manufacture Co., Ltd.
Liaoning Metallurgy Technician
Accounts payable 11,679,069.18 13,042,942.26
College
Liaoning Bengang Steel & Iron
Accounts payable
Trading Co., Ltd.
Benxi Steel & Iron (Group)
Accounts payable 115,322.99 108,353.68
Thermal Power Development
187
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Co., Ltd.
Benxi Steel & Iron (Group)
Accounts payable Zhengtai Construction 239,187.21 351,984.00
Materials Co., Ltd.
Liaoning Hengtong
Accounts payable Metallurgical Equipment 27,381,156.15 28,345,263.60
Manufacture Co., Ltd.
Liaoning Metallurgy Technician
Accounts payable 3,400,575.41 3,064,133.55
College
Bengang Cold-rolled Stainless
Accounts payable 544,494.82 607,335.86
Steel Dandong Co., Ltd.
Liaoning Hengtai Heavy
Accounts payable 14,429,696.43 16,153,790.49
Machinery Co., Ltd.
Benxi Steel & Iron (Group)
Accounts payable Plant Construction Supervisor 47,207.48 49,955.00
Co., Ltd.
Accounts payable Bengang Group Co., Ltd. 5,626.56 4,717.26
Subtotal 2,398,419,385.00 2,890,427,235.93
Benxi Steel & Iron (Group)
Advance from customers Machinery Manufacture Co., 758,322.02 683,249.32
Ltd.
Benxi Steel & Iron (Group)
Advance from customers Industrial Development Co., 2,280,187.93 2,054,478.78
Ltd.
Benxi Steel & Iron (Group)
Advance from customers 1,896,198.24 1,567,300.28
Metallurgy Residues Co., Ltd.
Benxi Steel & Iron (Group)
Advance from customers Steel & Iron Process and 5,921,216.77 7,418,119.01
Logistics Co., Ltd.
Dalian Boluole Steel Tube Co.,
Advance from customers 882,512.73 1,377,911.64
Ltd.
Liaoning Bengang Steel & Iron
Advance from customers 66,237,222.08 87,655,913.68
Trading Co., Ltd.
Liaoning Hengtong
Advance from customers Metallurgical Equipment 186,387.64 640,854.91
Manufacture Co., Ltd.
Liaoning Hengtai Heavy
Advance from customers
Machinery Co., Ltd.
Advance from customers Benxi Steel & Iron (Group)
188
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Thermal Power Development
Co., Ltd.
Bengang Group International
Advance from customers 69,021.17 69,021.17
Economic and Trading Co., Ltd.
Suzhou Bengang Industrial Co.,
Advance from customers 31,129,090.40 18,849,730.95
Ltd.
Subtotal 109,360,158.99 120,316,579.74
Benxi Steel & Iron (Group)
Other payables Real-estate Development Co., 2,032,488.21 2,311,747.28
Ltd.
Bengang Group International
Other payables 27,984,077.05 22,209,584.96
Economic and Trading Co., Ltd.
Benxi Steel & Iron (Group)
Other payables Machinery Manufacture Co., 70,037.80 72,796.80
Ltd.
Benxi Steel & Iron (Group)
Other payables 5,171,112.35 5,279,716.11
Construction Co., Ltd.
Benxi Steel & Iron (Group)
Other payables Industrial Development Co., 2,013,845.68 1,796,857.20
Ltd.
Benxi New Career
Other payables 522,702.70 1,062,187.97
Development Co., Ltd.
Benxi Steel & Iron (Group)
Other payables 350,000.00 350,000.00
Metallurgy Residues Co., Ltd.
Benxi Steel & Iron (Group)
Other payables
Medical Department
Benxi Steel & Iron (Group)
Other payables Information and Automatic 95,572.40 107,000.00
Tech Co., Ltd.
Benxi Steel & Iron (Group)
Other payables Steel & Iron Process and 1,069,085.08 1,349,684.48
Logistics Co., Ltd.
Benxi Steel & Iron (Group) Co.,
Other payables 200,504,584.76 153,946,251.96
Ltd.
Benxi Steel & Iron (Group)
Other payables Thermal Power Development 939,138.72 1,127,701.72
Co., Ltd.
Guangzhou Free Trade Zone
Other payables 2,674,436.85 2,674,436.85
Bengang Sales Co., Ltd.
189
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Benxi Steel & Iron (Group)
Other payables Plant Construction Supervisor 359,989.37 453,844.39
Co., Ltd.
Liaoning Hengyi Financial
Other payables 539,891.03 539,891.03
Leasing Co., Ltd.
Liaoning Metallurgy Technician
Other payables 3,000.00 3,000.00
College
Subtotal 244,329,961.99 193,284,700.75
7. Related parties commitment
None
8. Others
None
XIII. Commitments and Contingencies
1. Commitments
Commitments at balance sheet date
1. Lease contracts in progress or to be performed and their financial impacts
(1) For the land leased from the Company to the Group, price is RMB 0.624 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 2017. 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 2017 to 31 December 2019. Lease charges are negotiated between the lessor and the lessee based on
the original cost, depreciation, and national taxation of the product line, with consideration of conditions of production and
equipment performance.
For details of above leasing conditions please refer to Note 9 (4) 2.
2. Contingencies
(1) Significant contingency at balance sheet date
At the balance sheet date, no significant contingencies need to be disclosed.
190
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
(2) The Company have no significant contingency to disclose, also should be stated
At the balance sheet date, no significant contingencies need to be disclosed.
2. Others
XIV. Subsequent events
1. Significant events had not adjusted
Unit: Yuan
Influence number to the
Reason of unable to estimate
Items Content financial position and operating
influence number
results
2. Profit distribution after the reporting period
3. Sales return
4. Other significant events
(1) Segment information
Since the Company’s main product is steel with other products accounting for only a small proportion, and the main production
base is located in Liaoning area, segmented reporting is not applicable.
(2) Financial lease
For prioritizing the capital structure and exploring financing channel, on 20 April 2015, the Company signed the “Financial
lease cooperation framework” with Liaoning Hengyi Financial Leasing Co., Ltd. with the amount of financial lease not
exceeding RMB 5,000 million. The Company obtains the fund through sales and lease back financial lease with interest rate not
above the benchmark interest rate of loan over the same period published by the People’s bank of China and the interest rate will
be adjusted with the changes of benchmark interest rate of loan published by the People’s bank of China over the lease term.
The term of financial lease shall not exceed 36 months
On 28 December 2016, the Company signed the “Financing lease back after sales contract” (Contract No.
2016HYZL0006-ZL-01). The purchase price of the leased asset is RMB 210,000,000. 00. Lease period is one year starting from
28 March 2016. Lease rate was 4.35% when signing the contract.
(3) On 27 December 2016, as the 1st extraordinary Shareholders’ general meeting approves “the proposal of the non-public
offering of A shares program of the Company (December 2016 revised edition) ”, the Company considers to undertake the
non-public offering shares to particular investors and thus raise capital of RMB 4 billion. The Company raises funds mainly for
the purpose of high strength cold rolling steel renovation project, the third cold rolling work hot-dip galvanizing production line
project, and repaying bank loans. Legal procedures are being reviewed for approval
191
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
(4) As at 30 June 2017, the controlling shareholder Benxi Steel & Iron (Group) Co., Ltd. held a total number of 1,251,000,000
shares pledged, accounting for 39.89% of the total number of shares of the Company.
XV. Other significant events
1. The accounting errors correction in previous period
(1) Retrospective restatement
Unit: Yuan
Name of the influenced report
Content Processing program Cumulative impact
items during comparison period
(2) Prospective application
Content Processing program Reason of adopting prospective application
2. Debt restructuring
3. Replacement of assets
(1) Non-monetary assets exchange
(2) Other assets replacement
4. Pension plan
5. Discontinuing operation
Unit: Yuan
Termination of
the business
Income tax profits
Items Revenue Expenses Total profit Net Profit
expense attributable to the
parent company
owner
Notes
192
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
(2) Financial information of segment
Unit: Yuan
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) Notes
7. Other important transactions and events have an impact on investor’s decision-making
8. Others
XVI. Notes to the financial statements of parent company
1. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: Yuan
Ending balance Beginning balance
Provision for bad Total net
Carrying amount Carrying amount Provision for bad debts Total net
debts book
Category book value
Bad value of
Percenta Percenta Bad debts of Fixed
Amount Amount debts Fixed Amount Amount
ge ge ratio assets
ratio assets
Accounts receivable
689,888, 197,950, 491,938,1 658,679 203,609,5 455,070,30
tested for impairment 100.00% 28.69% 100.00% 30.91%
707.86 562.42 45.44 ,865.43 63.43 2.00
by portfolio
689,888, 197,950, 491,938,1 658,679 203,609,5 455,070,30
Total 100.00% 28.69% 100.00% 30.91%
707.86 562.42 45.44 ,865.43 63.43 2.00
Receivable accounts with large amount individually and bad debt provisions were provided:
□ Applicable √ Not applicable
Accounts receivables tested for impairment by portfolio using the method of Aging analysis:
√ Applicable □ Not applicable
Unit: Yuan
193
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Ending balance
Aging
Accounts receivable Provision for bad debts Bad debts ratio
Within 1 year (inclusive)
337,110,882.55
Subtotal of within 1 year 337,110,882.55
1-2 years 138,635,838.56 6,931,791.93 5.00%
2-3 years 28,904,020.32 5,780,804.06 20.00%
Over 3 years 185,237,966.42 185,237,966.42 100.00%
Total 689,888,707.86 197,950,562.42 28.69%
Notes:
1. The recognition and provision for bad debts for the individually significant receivables:
The recognition standard of bad debts provision for the individually significant receivables: Individually significant receivables
refer to accounts receivable over RMB10 million or other receivables over RMB 5 million.
The provision for bad debts for the individually significant receivables:
The impairment test shall 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 debts provision and shall be recorded into the profits and losses at the current period.
2. The recognition and provision for bad debts for the receivables in portfolio:
Criteria for Recognition of Portfolio
Portfolio: Insignificant amount of receivables and unadjusted individual
receivables
Recognition and provision for bad debts for portfolio
Portfolio: Aging analysis method
Aging analysis method for bad debts provision:
Aging Bad debts ratio for accounts Bad debts ratio for other
receivable (%) receivables (%)
Within 1 year (inclusive)
1-2 years (inclusive) 5 5
2-3 years (inclusive) 20 20
Over 3 years 100 100
3. Insignificant individual amounts of accounts receivable that recognize bad debts individually:
(1) Reasons for individual recognition and provision of bad debts. Accounts receivable amount is proved to be unrecoverable
with conclusive evidence.
(2) Method of bad debts recognition and provision
If conclusive evidence shows the possibility of recovering the amount is small, recognize bad debts individually as if the amount
is unrecoverable.
Receivable accounts on which bad debt provisions are provided on percentage analyze basis in a portfolio:
□ Applicable √ Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the portfolio:
194
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
(2) Information of provision, reversal or recovery of bad debts of current period
The provision of bad debts of current period is RMB0.00；Bad debt provision written back was RMB 5,659,001.01 in the period.
Significant items of retrieving or writing back of bad debt provisions:
Unit: Yuan
Company Amount retrieved or written back way of retrieving
(3) Receivable accounts actually written off in the report period
Unit: Yuan
Items Amount written off
Significant amount written off:
Unit: Yuan
Property of the Reason of writing Written off Created by related
Company Amount written off
receivable account off procedures transaction or not
Statement on writing off of receivable accounts:
(4) Top five debtors at the year-end
Ending balance
Company Percentage of total Provision for
Amount Accounts receivable
(%) bad debts
Benxi Nanfen Xinhe Metallurgical Co., Ltd. 87,396,378.47 12.67 4,368,958.76
Benxi Steel & Iron (Group) Machinery Manufacture Co.,
52,584,877.55 7.62 6,252,766.59
Ltd.
Hua You Steel Pipe Co., Ltd. 29,732,876.07 4.31 29,616,623.65
Ningbo CIMC Logistics Equipment Co., Ltd. 21,855,329.22 3.17
Benxi Steel & Iron (Group) Industrial Development Co.,
19,023,387.89 2.76
Ltd.
Total 210,592,849.20 30.53 42,290,507.72
(5) Recognition of receivable accounts terminated
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
Notes:
195
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
2. Other receivables
(1) Other receivables disclosed by category
Unit: Yuan
Ending balance Beginning balance
Provision for bad
Carrying amount Carrying amount Provision for bad debts
debts Net
Category Net Book
Bad Book
Percenta Percenta Bad debts Value
Amount Amount debts Value Amount Amount
ge ge ratio
ratio
Accounts receivable
236,478, 62,189,3 174,288,6 271,534 63,184,24 208,349,80
tested for impairment 99.27% 23.27% 99.36% 23.27%
074.50 92.14 82.36 ,044.90 0.02 4.88
by portfolio
Other insignificant
items but tested for 1,740,00 1,740,000 1,740,0 1,740,000.0
0.73% 0.64%
impairment 0.00 .00 00.00 0
individually
238,218, 62,189,3 176,028,6 273,274 63,184,24 210,089,80
Total 100.00% 26.11% 100.00% 23.12%
074.50 92.14 82.36 ,044.90 0.02 4.88
Other receivable accounts with large amount and were provided bad debt provisions individually at end of period.
□ Applicable √ Not applicable
Other receivables tested for impairment by portfolio using the method of Aging analysis:
√ Applicable □ Not applicable
Unit: Yuan
Ending balance
Aging
Other receivables Provision for bad debts Bad debts ratio
Within 1 year (inclusive)
164,487,738.98
Subtotal of within 1 year 164,487,738.98
1-2 years 6,663,168.20 333,158.41 5.00%
2-3 years 4,338,666.99 867,733.40 20.00%
Over 3 years 60,988,500.33 60,988,500.33 100.00%
Total 236,478,074.50 62,189,392.14 26.30%
Notes:
1. The recognition and provision for bad debts for the individually significant receivables:
The recognition standard of bad debts provision for the individually significant receivables: Individually significant
receivables refer to accounts receivable over RMB10 million or other receivables over RMB 5 million.
196
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
The provision for bad debts for the individually significant receivables:
The impairment test shall 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 debts provision and shall be recorded into the profits and losses at the current period.
2. The recognition and provision for bad debts for the receivables in portfolio:
Criteria for Recognition of Portfolio
Portfolio: Insignificant amount of receivables and unadjusted individual
receivables
Recognition and provision for bad debts for portfolio
Portfolio: Aging analysis method
Aging analysis method for bad debts provision:
Aging Bad debts ratio for accounts Bad debts ratio for other
receivable (%) receivables (%)
Within 1 year (inclusive)
1-2 years (inclusive) 5 5
2-3 years (inclusive) 20 20
Over 3 years 100 100
3. Insignificant individual amounts of accounts receivable that recognize bad debts individually:
(1) Reasons for individual recognition and provision of bad debts. Accounts receivable amount is proved to be unrecoverable
with conclusive evidence.
(2) Method of bad debts recognition and provision
If conclusive evidence shows the possibility of recovering the amount is small, recognize bad debts individually as if the amount
is unrecoverable.
Provision of bad debts under the percentage of balance method:
□ Applicable √ Not applicable
Provision of bad debts under other methods:
□ Applicable √ Not applicable
(2) Information of provision, reversal or recovery of bad debts of current period
The provision of bad debts of current period is RMB0.00；Bad debt provision written back was RMB 994,847.88 in the period.
There into, the significant bad debt provision written back or retrieved during the current period:
Unit: Yuan
Company Amount of written back or retrieving way of retrieving
(3) Receivable accounts written back or retrieved in the report period
Unit: Yuan
Items Amount written off
Significant other receivables:
Unit: Yuan
197
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Reason of writing Written off Created by related
Company Property of account Amount written off
off procedures transaction or not
Notes:
(4) Other receivables disclosed by nature
Unit: Yuan
Nature Ending balance Beginning balance
Accounts 227,525,677.56 259,660,295.88
Export tax rebate 0.00 4,990,848.26
Others 10,692,396.94 8,622,900.76
Total 238,218,074.50 273,274,044.90
(5) Top five debtors at the year-end
Unit: Yuan
Percentage of total Provision for bad
Company Nature or content Ending balance Aging
other receivables debts Ending balance
Benxi Steel &Iron
(Group) Machinery
Accounts 4,610,543.21 Within 1 year 1.94%
Manufacturing Co.,
Ltd.
Huozhou Coal and
Electricity Group Co., Accounts 4,341,257.18 Over 3 years 1.82% 4,341,257.18
Ltd.
State Grid Liaoning
Power Supply Co., Accounts 3,530,637.67 Within 1 year 1.48%
Ltd. Benxi Branch
Benxi Steel & Iron
(Group) Real-estate
Accounts 2,511,984.11 3 年以内 1.05% 173,991.52
Development Co.,
Ltd.
Liaoning Huawei
Coal Preparation Co., Accounts 2,261,360.00 Over 3 years 0.95% 2,261,360.00
Ltd.
Total -- 17,255,782.17 -- 7.24% 6,776,608.70
(6) Receivable accounts involving the government
Unit: Yuan
198
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Government Subsidies Predicted time and
Company Ending balance Age at end of period
Items Name amount of receiving
(7) De-recognition other receivables due to financial assets transfer
(8) Assets and liabilities formed by transferring and continuous involvement of other receivables
Notes:
3. Long-term equity investments
Unit: Yuan
Ending balance Beginning balance
Items
Carrying amount Total impairment Book value Carrying amount Total impairment Book value
Investment to
1,751,981,902.16 1,751,981,902.16 1,700,981,902.16 1,700,981,902.16
subsidiaries
Total 1,751,981,902.16 1,751,981,902.16 1,700,981,902.16 1,700,981,902.16
(1) Investment to subsidiaries
Unit: Yuan
Ending balance of
Company invested Beginning Provision for
Increase Decrease Ending balance provision for
in balance impairment
impairment
Guangzhou
Bengang Steel &
1,000,000.00 1,000,000.00
Iron Trading Co.,
Ltd.
Shanghai Bengang
Metallurgy
Science and 19,200,000.00 19,200,000.00
Technology Co.,
Ltd.
Bengang Steel
Plate Liaoyang 529,899,801.38 529,899,801.38
Orel Ball Co., Ltd.
Dalian Benruitong
Automobile
Material 65,000,000.00 65,000,000.00
Technologies Co.,
Ltd.
199
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
Bengang Puxiang
Cool Rolling Steel 1,019,781,571.10 1,019,781,571.10
Sheet Co., Ltd.
Changchun
Bengang Steel &
-1,355,124.64 -1,355,124.64
Iron Sales Co.,
Ltd.
Harbin Bengang
Economic and 423,398.23 423,398.23
Trading Co., Ltd.
Nanjing Bengang
Steel Material 2,081,400.65 2,081,400.65
Sales Ltd.
Wuxi Bengang
Steel & Iron Sales 936,718.57 936,718.57
Co., Ltd.
Xiamen Bengang
Steel & Iron Sales 1,095,711.66 1,095,711.66
Co., Ltd.
Yantai Bengang
Steel & Iron Sales 19,600,329.41 19,600,329.41
Co., Ltd.
Tianjin Bengang
Steel & Iron 33,318,095.80 33,318,095.80
Trading Co., Ltd.
Benxi Bengang
Steel Sales Co., 5,000,000.00 5,000,000.00
Ltd
Shenyang
Bengang
Metallurgical
5,000,000.00 5,000,000.00
Science and
Technology Co.,
Ltd.
Bengang
Baojin(Shenyang)
51,000,000.00 51,000,000.00
Automobile New
Material Co, Ltd.
Total 1,700,981,902.16 51,000,000.00 1,751,981,902.16
200
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
(2) Investment to joint venture and associated enterprise
Unit: Yuan
Changes Ending
Adjustme balance
Investme
nt of Declarati of
Beginnin Add Reduce nt income Other Provision Ending
Name other on of cash provision
g balance investmen investmen under equity impairme Others balance
comprehe dividends for
t t equity changes nt
nsive or profit impairme
method
income nt
1. Joint venture
2. Associated enterprise
(3) Notes
4. Operating income and operating cost
Unit: Yuan
January to June 2017 January to June 2016
Items
Revenue Cost Revenue Cost
Principal business 19,350,686,493.45 17,842,348,026.16 12,051,859,180.54 10,706,509,048.28
Other business 1,846,830,285.75 1,640,628,048.16 1,133,529,266.65 1,023,377,735.93
Total 21,197,516,779.20 19,482,976,074.32 13,185,388,447.19 11,729,886,784.21
Notes:
5. Income on investment
Unit: Yuan
Items January to June 2017 January to June 2016
Income from long-term equity investment
102,074,634.76 13,713,328.45
(cost method)
Income from bank short-term financial
3,294,593.14
products
Total 105,369,227.90 13,713,328.45
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
6. Others
XVII. Supplementary information
1. Details of non-recurring profit and loss
√ Applicable □ Not applicable
Unit: Yuan
Items January to June 2017 Notes
Profit or loss from disposal of non-current
-1,578,126.30
assets
Details of government subsidies recorded
into current profits and loss(except such
government subsidy closely related to the
company’s normal business operation,， 15,047,000.00
meeting the regulation of national policy and
enjoyed constantly in certain quota or
quantity according to a certain standard)
Profit or loss from investment or assets
3,294,593.14
entrusted to others
Profit or loss from debt restructuring 822,116.45
Other non-operating revenue and
2,130,078.13
expenditure other than above items
Less: Impact of income tax 4,928,915.36
Impact of minority interests 24,516.32
Total 14,762,229.74 --
For the Company’s non-recurring profit and loss items as defined in “the Explanatory Announcement No.1 on information disclosure
for Companies Offering their Securities to the Public-Non-recurring Profits and Losses” and its non-recurring profit and loss items as
illustrated in “the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the
Public-Non-recurring Profits and Losses” which have been defined as recurring profits and losses, it is necessary to explain the
reason.
□ Applicable √ Not applicable
2. Net asset yield and earnings per share
Earnings per share
Diluted gains per
Profit in the Reporting Period Weighted average net assets yield (%) Basic earnings per
share(RMB/Share)
share(RMB/Share)
(RMB/Share)
Net profit attributable to ordinary 4.04% 0.167 0.167
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Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
shareholders
Net profit attributable to ordinary
shareholders after deducting 3.92% 0.162 0.162
non-recurring profit and loss
3. 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
Unit: Yuan
Net Profit Net assets
2016 2015 Ending balance Beginning balance
According to CAS 523,635,653.57 182,538,176.32 13,249,274,456.60 12,715,354,551.15
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
(3) Accounting data differences between domestic and foreign accounting standards，if the differences has
already been adjusted by the foreign audit agency shall indicate the name of the agency.
4. Others
203
Bengang Steel Plates Co., Ltd. Semi-Annual Report 2017
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.
204
