| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
Sustainable Development Report of
2018 of Bengang Steel Plates Co., Ltd.
(Report Period: January 1, 2018 – December 31, 2018)
| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
Contents
Manager’s Message..................................................................................................................... 1
2018 in retrospect ................................................................................................................. 1
Prospects for the year of 2019 .............................................................................................. 2
II. With regard to this report.......................................................................................................... 4
III. General situation of company .................................................................................................. 5
3.1 Present Situation of company.......................................................................................... 5
3.2 The condition of controlling shareholder and actual controllers ........................................ 6
3.3 Business indicators ......................................................................................................... 7
IV. Corporate governance ............................................................................................................ 8
4.1 Management of sustainable development ....................................................................... 8
4.2 Guarantee of sustainable development System............................................................... 8
4.3 Organization governance ................................................................................................ 9
4.4 Competitiveness of enterprise ........................................................................................12
4.5 The economic value to be created and distributed..........................................................15
V. Green Benxi Steel ...................................................................................................................19
5.1 Green Products..............................................................................................................19
5.2 Green Manufacturing .....................................................................................................26
5.3 Green Urban Steel Plant ................................................................................................31
5.4 Green supply chain ........................................................................................................33
5.5 Honest and ethical operation..........................................................................................35
VI. People-oriented .....................................................................................................................36
6.1 Employee profile ............................................................................................................36
6.2 Learning and Training ....................................................................................................36
6.3 Career Development ......................................................................................................38
6.4 Compensation and benefits……………………………………………………………………39
6.5 Employee Care ..............................................................................................................40
6.6 Public Benefit Support....................................................................................................41
VII. Annex ...................................................................................................................................42
Questions and Answers of Shareholders..............................................................................42
| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
Manager’s Message
2018 in retrospect
In 2018, Bengang Steel Plates persisted in taking Xi Jinping Thought on Socialism with
Chinese Characteristics for a New Era as the guiding thought, further studied and carried out the
spirit of 19th National Congress of the Communist Party of China, and adhered to the general
principle of pursuing progress while ensuring stability, further studied and carried out the new
development concept, and complied with the requirements of high quality development. Under the
strong support of the supply-side structural reform of the Party Central Committee and the
considerable improvement of the steel market, the company seized the strategic development
opportunities, implemented the policy of obtaining the benefit from the output and quality of
products, optimized the production organization model, strengthened the management and control
of the process and achieves the good results, and the company entered a good state of sustained
and stable development. When reviewing the works in the whole year, they are embodied as
follows:
I. Go all out to improve the quality and increase benefit; the quality of development of the
enterprise is improved obviously, the records of production are rewritten continuously, the
engineering projects are proceeding more efficiently, the product development scores the great
successes, and the influence of brand is extended continuously.
II. Actively promote the efficiency, enhance the overall operation level of enterprise and a ccelerate
the overall progress of the enterprise. Effectively reduce the procurement costs and optimize the
procurement management mode. Make the products increase more profit, and vigorously promote
e-commerce sales. Further promote the capital operation and optimize the capital layout.
III. Firmly and unshakably deepen the reform, vigorously promote the "four fix (post, number,
duties and salary)" work, improve the post performance management system of all the workers
and staff and the performance evaluation method of the workers and staff. Resolutely rectify the
work style, set up two levels of "service hotline for workers and staff" and broaden and optimize
the channels of public opinion and petition.
IV. Continually consolidate the management foundation, improve the management and
governance system of the company, and actively create the peaceful and safe Bengang Steel
Plates and the green and environmental protection Bengang Steel Plates, and the propaganda
and trade union work achieve great successes, and the work of the construction of the Party
conduct and of an honest and clean government is carried out smoothly.
The economic indicators realized in the whole year are as follows: business income: 50.1
billion Yuan; and the annual output of products: pig iron: 8,480 thousand tons, crude steel: 8,950
thousand tons, hot rolled steel plate: 11,480 thousand tons, cold rolled steel plate: 5,600 thousand
tons, and special steel products: 680 thousand tons; the comprehensive energy consumption per
ton of steel in the whole year: 629 kg standard coal, which is 2.63% lower than that of last year.
The safety in production: there is not any serious accident involving casualties, fire accident and
equipment accident in the whole year.
In the whole year, the research and development investment rate: 2.22%, the new product
sales rate: 46.45%; the number of patent applications: 200, among them, the proportion of patent
of invention: 49.5%. And in the whole year, the fixed asset investment: 3.924 billion Yuan.
The driving factors of main performance are as follows: around the working procedure
improvement, product structure adjustment and energy saving and emission reduction, speed up
the construction of transformation projects of key projects. After No. 5 blast furnace for steel plate
products is examined and repaired in 77 days, it is only one time to successfully start the furnace.
The task to examine and repair the new No.1 blast furnace for steel plate products is finished 7
days ahead of time, which sets the several historical records in the domestic same type of blast
furnace transformation construction. The plates and special steel factory discusses and starts the
construction of the function improvement transformation project of the blooming area, is based on
the high-quality development requirements, and promotes the transformation and upgrading. The
company newly increases 56 certification brands of automobile plate, obtains the certifications of
Benz company and BMW company for automobile plate, and the product s successfully used by
the first-class automobile manufacturers in the world such as Ford, Fiat, Renault and so on, which
clearly indicates that the company has the qualification, credentials and capacity to provide the
first-class automotive companies in the world with the products, and this has the milestone
significance. In addition, Bengang Steel Plates raises the funds of 4 billion Yuan through the
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
non-public financing, and it is first time for the company to realize the second financing in the
capital market in 20 years since it was listed.
In 2018, in order to meet the new requirements of the environmental protection of the state,
the company clearly defined and specified the responsibility in the environmental protection work,
and by taking several measures such as further guaranteeing the stable operation of
environmental protection facilities and the discharge of pollutants after they stably conform to the
standard, and improving the automatic online monitoring facilities and so on, the company
seriously carried out the second general investigation and check work of pollution sources, the
work to apply and receive the iron and steel industry pollutant discharge permit, the work of
verification of carbon emission, and the work of environmental assessment and environmental
acceptance of the construction projects, and achieved the goal: the pollutants discharging in the
positions, in which the pollutants were produced, could be controlled, and completed the work of
meeting the requirements of reexamination of the environmental protection supervision group of
the Party Central Committee.
Prospects for the year of 2019
In 2019, Bengang Steel Plates will adhere to the general principle of pursuing progress while
ensuring stability, fully carry out all the decisions and plans of the provincial Party committee and
provincial government, and the year of 2019 will be the important year for the company to promote
the sustainable, stable and healthy development.
◎ Overall work ideas in 2019
Fully implement the spirit of the important speeches of General Secretary Xi Jinping during
inspected Liaoning Province and at the symposium on further promoting the revitalization of the
Northeast China, adhere to taking the supply-side structural reform as the main line, follow and
carry out the high-quality development requirements, consistently implement the new
development concept and the "four efforts" and "three advances", unshakably deepen the reform
and seize the opportunities for innovation and breakthroughs, and exert all our strength to build a
first-class enterprise with the greater competitiveness in the world.
◎ General objective of production and operation in 2019
Work hard for producing: pig iron: 10,000,000 tons, crude steel: 10,140,000 tons, hot-rolled
steel plate: 11,780,000 tons, cold-rolled plate: 5,950,000 tons, special steel products: 700,000 tons.
With regard to the safety in production, make great efforts to achieving the goal: there will not be
any fatal accident, accident involving heavy casualties and serious fire accident.
◎ Focal point of work in 2019
(1) Take the reform of the institutional mechanism as a breakthrough point, further stimulate
the vitality of enterprises. First, actively promote the reform mixed ownership reform and promote
the institutional innovation. Second, speed up the implementation of various reform measures that
takes the "four fix (post, number, duties and salary)" as the core.
(2) Optimize the market layout. Actively participate in the "the Belt and Road Initiative"
construction, continue to widely recommend and introduce the brand of Bengang Steel Plates in
the international market. In the domestic market, optimize the scheme of market resources putting
on the market, increase the market share in the high-priced regions. Actively participate in the
second round of the opening of the stock ownership (equity) of Ouyeel co mpany to the public,
accelerate the pace of online sales of products, and strive to promote business mode innovation.
(3) Continuously optimize the resource allocation and promote the structural adjustment.
Around the annual operating target and the planning target of this group company in 2020 for
producing the annual output of steel of 20 million tons, carry out the new round of large-scale
technological transformation, which takes the following key projects as its representative: the
technological transformation of energy saving and environmental protection of blast furnace,
technological transformation of upgrade and update of special steel electric furnace, advanced
treatment and reuse of wastewater, the project of desulfhydrylation of coke-oven gas, and ultralow
discharging adaptability technological transformation and so on, and propel the enterprise to
realize the high-quality, green and environmental-protection, and intelligent development.
(4) Deepen innovation-driven development and continuously improve technical innovation
ability. Work hard for the projects: "the quality improvement and tackling of key problems of
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
cold-rolled, hot galvanized automotive surface plate", "quality control and tackling of key problems
of ultra-wide cold-rolled plate" and so on, carry out the research and development of hot
galvanized phase transformation induction plastic steel, make greater efforts to carrying out the
research and development and the promotion and application in the market of car gear steel.
Speed up the scientific and technological innovation system construction and the reform of
scientific and technological system, increase the research and development efficiency. Utilize the
social resources and scientific and technological policies, promote the coop eration and innovation
together with the colleges and universities, scientific research institutions, governments, social
institutions, upstream and downstream users and the enterprises in the same trade as well as all
the departments in this enterprise to enhance the level of technological innovation and the ability
of sustainable development.
(5) Further do the work of exploiting the potentialities of saving energy according to the
relevant advanced international standard, and continuously promote the optimization and
promotion of the process. First, strengthen the top-level design, further improve the management
system and business processes, improve the market-oriented internal governance and control
mechanism. Second, around the whole industrial chain and management chain, establish the
scientific and complete work system of comparing the energy consumption condition with the
advanced international standard, make overall plans to improve the work of cutting the cost of
system and technology, research the low-cost process and technology, and enhance the efficiency
of the system operation. Third, continuously optimize the process of purchasing by invitation to bid,
gradually make the process to cover all the ranges. Continuously improve the management of
suppliers, reduce the intermediate merchant by a wide margin, and further improve the work of
making purchases by selecting opportunity and cutting the procurement costs by rationally utilizing
some measures such as utilizing the price adjustment window p eriod and carrying out scientific
analysis and prejudgment and so on.
(6) Further promote the specialized management and control, and establish the scientific and
rational management and control system. Continue to adhere to the principle of giving priori ty to
the output, take the guarantee of supply and the output, the increase of electricity generation
capacity, water source management and the process control as the focal point, take the
implementation of the ultralow discharge policy of iron and steel industry as the core, follow and
meet the requirements of environmental protection supervision group of the Party Central
Committee, and continuously promote the construction of ecological civilization. Take the
intellectualization, greening (environmental protection), refinement and high-end product and
technology as the main direction of work, and promote the upgrade of product quality. Around the
target of “intelligent manufacturing, intelligent equipment and intelligent operation” of Bengang
Steel Plates, further concretely carry out the project of the informatization development plan.
(7) Stick to implement the strategy of using the talents to strengthen the enterprise, attract
the excellent talents to come to Benxi Steel Group Corporation to start an u ndertaking. Continue to
further carry out the program of career of college graduates, and further implement the “green
apple” talent selection and training plan and the academic leader of professional studies and
top-notch talents selection plan. Continue to do a good work in MBA training course and the
training for rotating posts, and continuously select and foster the high -quality young management
and professional technical reserve talents.
(8) Strengthen the capital operation. Further widen the financin g channels, make every effort
to reduce the cost of financing of the enterprise, and coordinate with the investment banks and
other financial institutions in the issuance of bonds of Benxi Steel Group. Continue to promote the
overseas debt issuance project of Benxi Steel Group, and actively promote the work of changing
the newly increased debt to the equity.
(9) Solve the problems in the people's livelihood, and conscientiously and effectively solve the
most concerned, most direct and most realistic interest problems of workers and staff. Adhere to
the principle of making the income growth of workers and staff suited to the economic benefits of
enterprises, and establish a mechanism for the wage growth of workers and staff; raise the
standard of per capita physical examination expenses; and speed up the work of rebuilding and
extending the sky (three-dimensional) parking lots and providing the service of buses; establish
the "four-in-one" mode of labour emulation drive, technological innovation, skills compet ition and
technical training, fully improve the technical quality of workers and staff; give full play to the
function of "hotline for serving the workers and staff", improve the system of safeguarding the
legitimate rights and interests of workers and staff; increase the efforts to help the difficult workers,
and do a good job for all the workers and staff to take a rest cure. Strengthen the construction of
literary and art facilities and the sports fields and gymnasiums, in order to make the workers and
staff have the more substantial, more guaranteed and more sustainable sense of gain, feeling of
happiness and sense of security.
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
II. With regard to this report
> Solemn promise
The board of directors and all the directors of this company guarantee that t here is not any
false record, misleading statement or important omission in the content of this report, and shoulder
the individual and joint liability for the truthfulness, accuracy and completeness of the content of
this report.
> Report period
This report discloses the information in the period from January 1, 2018 to December 31,
2018, and a part of contents appropriately trace back to other years.
> Scope of report
This report mainly describes the activities in the economic, environmental and socia l work of
Bengang Steel Plates Co., Ltd. The "Bengang", "Plates Company" and "Company" appeared in
the following paragraph are the abbreviation for Bengang Steel Plates Co., Ltd., and this is no
longer repeated.
The RMB Yuan (CNY) is taken as the unit for the financial data in this report.
> Reference standard
General Administration of Quality Supervision, Inspection and Quarantine of the People's
Republic of China and Standardization Administration:
GB/T 36001-2015 Guidance on social responsibility reporting
Global Reporting Initiative (GRI): Sustainability Reporting Guidelines (G4)
Chinese Academy of Social Sciences: Guidance on Compiling the Social Responsibility
Reporting of Chinese Enterprises (CASS-CSR3.0)
> Form of issuing report
This report has two editions: Chinese edition and English edition, which is issued in the forms
of printing and electronic versions, and the electronic version can be found on the website of
Bengang Steel Plates Co., Ltd.: http://www.bxsteel.cn.In case of any ambiguity between Chinese
and English, the Chinese edition shall prevail.
> Contact Information
Bengang Steel Plates Co., Ltd.
No. 16, Renmin Road, Pingshan District, Benxi City, Liaoning Province, China
Post Code: 117000
Telephone: 0086 – 024 – 47827003
Fax: 0086 – 024 – 47827004
E-mail: bgbcdm@163.com
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
III. General situation of company
3.1 Present Situation of company
Bengang Steel Plates Co., Ltd. (hereinafter referred to as “Bengang Steel Plates”) is located
in Benxi City, Liaoning Province and is a state-owned holding listed company with the core
business of iron and steel (Stock code: 000761, 200761), which belongs to Benxi Steel Group
Corporation. In 1997, by approved by Liaoning Provincial People’s Government (LZ (1997) No. 57
Document), Benxi Steel Group Corporation restructured the assets and liabilities of the steel
plates business of the steel mill, rough rolling mill and hot continuous rolling mill, which is owned
by Benxi Steel Group, and set up the Bengang Steel Plates Co., Ltd. on June 27, 1997. Its
registered capital is 3.875 billion Yuan. In this company, there are 15 functional departments, 5
units directly under this company and 14 production factories and mines. At the end of year of
2018, the total assets are 59.632 billion Yuan, the fixed assets are 22.035 billion Yuan, the net
assets is 19.659 billion Yuan, and there are 18,436 employed workers and staff.
Bengang Steel Plates is the super-huge type integrated iron and steel works that integrate the
iron-smelting, steel-smelting and steel rolling, have the 4,747-cubic meter blast furnace, which is
the largest blast furnace in volume in the north-east China, 2300-model hot continuous rolling
assembling unit that is broadest in width in the world and the most adv anced cold rolling
production line in the world, and the whole iron and steel technologies and equipment of the
company come up to advanced world standards, and the annual productive capacity of
high-quality steel products of the company is up to: pig iron: 10,000,000 tons, crude steel:
12,500,000 tons, hot rolling steel products: 13,000,000 tons, cold-roll steel products: 6,400,000
tons and special steel products: 1,100,000 tons.
Bengang Steel Plates has 1 national-level technical center, 2 state-level physical and
chemical testing laboratories and post-doctoral research workstations, academicians and experts
workstation, and focus on improving the scientific research and product development level of the
company. Relying on state-level scientific research institutions, the company comes up to
advanced domestic standards in the research and development of automotive plates, home
appliance plates, steel for petroleum pipeline and the plates for container, and has established the
product system with high-tech content and high value-added, which takes the products of the steel
for automotive, home appliance, pipeline, container and high-end equipment as well as the special
steel as the leading products. The company adheres to the market demand -oriented, taking the
product structure adjustment as the main line and taking the customer requirements as the center,
continuously innovates the business mode, implements the coordinated, orderly and highly
efficient production management, improves the product quality, and the company maintains the
production and sales rate of 100% all along. The products of the company are widely used in many
domestic key industries: automotive, home appliances, building, petrochemical, communications
and transportation, defense and military industry, high-end equipment, energy and environmental
protection and other key industries, and exported to all over the world, and the export volume of
products ranks among the first in the national steel industry. Bengang Steel Plates provides a solid
foundation for the product quality assurance and the scientific development of the company by
establishing the standardized management system such as the quality management system, the
environmental management system, the energy management system, the occupational health and
safety management system, management system of integration of information technology and
industrialization, and the international standard system of automotive plates.
As a listed company to which the public pays close attention, Bengan g Steel Plates always
adheres to the concept of green development and harmonious development, adheres to taking the
safety, environmental protection, energy conservation and humanistic development as an
important component part of enterprise development, and realizes the objective of making the
workers and staff and the society share the development results while strengthening the economic
operation of the company. In the future, Bengang Steel Plates will seize the historical opportunity
to speed up the adjustment and transformation of the old industrial base in Northeast China,
shoulder the sacred mission of using the iron and steel strength to support a happy life, provide
the most valuable quality products and good service to the society and the public, a nd make
greater contributions to the development of the iron and steel industry of the country and the
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
nation.
3.2 The condition of controlling shareholder and actual controllers
Name of company Benxi Iron and Steel (Group) Corporation
Legal Yang Chengguang
representative
Date of July 10, 1996
establishment
Enterprise 91210500119726263U
organization code
The iron and steel smelting, mining, plates rolling, pipe making, power
generation, special section steels, heating supply, water, electricity, air
and gas supply, metal processing, machines and electrical equipment
repair and manufacturing, equipment manufacturing, building and
installation, railway and highway transport, import and export trade,
tourism, accommodation, catering and entertainment services; printing,
newspapers and periodicals distribution, building materials, fireproof
materials, measuring instrument and meters, material supply and
Core business
marketing, real estate development, scientific research, design,
information services, property management, communications, scrap
steel purchase, processing and sales, housing and civil air-defense
construction leasing, steel products regulation, waste oil purchase (the
above items are limited for the operation of branch companies), assets
management, "Bengang Daily" publishing; printed advertisements design
and making, use our own “Bengang Daily” to issue domestic and foreign
advertisements, design and make the television advertisement.
● Condition of actual controller
The actual controller of this company is State-owned Assets Supervision and Administration
Commission of Liaoning Provincial Government.
● The change condition of controlling shareholder and actual controller
The controlling shareholder and actual controller of the company are not changed within the
report period.
State-Owned Assets Supervision and Administration Commission
of Liaoning Provincial Government
Liaoning Provincial Social Security Funds Executive
Council
Benxi Steel Group Corporation Huatai Securities Asset Management Co., Ltd.
Benxi Iron and Steel (Group) Co., Ltd.
Bengang Steel Plates Co., Ltd.
● Other corporate Shareholders who held the shares of more than 10% of total shares
There is no other corporate shareholder who holds the shares of more than 10% of total
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
shares in this company at the end of the report period.
● The nature of shareholder’s ownership
The local state-owned holdings.
● The change condition of capital stock
See the annual financial statement of the company for the capital stock chang e condition of
company is available, which is not repeated again here.
3.3 Business indicators
By the end of year of 2018, the main product data and business income are as follows:
Unit: 0.1 billion Yuan
Item In 2018 In 2017
I. Total operating revenues 501.82 405.08
II. Total operating costs 490.71 385.88
Among them: Operating costs 452.44 356.78
Sales expense 11.35 11.84
Management expense 9.16 8.45
Financial expenses 13.76 5.36
Asset impairment losses 0.37 1.04
Income on investment 0.05 0.04
III. Operating profits 12.02 19.67
IV. Total profit; 10.54 19.16
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
IV. Corporate governance
4.1 Management of sustainable development
The company uses the culture strength of the enterprise to propel the enterprise to enhance
competitiveness and sustainable development. The company adheres to systematically do the
work of culture construction of enterprise, adheres to having the core concept of corporate culture:
taking "People oriented, people unity, constant improving and striving for stronger" as the core
values, taking "using the iron and steel strength to support a happy life " as the mission of
enterprise, taking "honoring credibility, mutual benefit and win -win" as the business philosophy,
and taking "excellent value creator and happiness maker" as the vision of enterprise, and use it
to establish the enterprise’s culture system.
Corporate culture concept system
Classification Description
Mission Using the iron and steel strength to support the happy life.
Vision (prospects) Outstanding value creator and happiness make.
People oriented, people unity, constant improving and striving
Core values for stronger
Innovation, strive for better change, constantly strive to
Enterprise spirit become stronger
Safety concept I can work safely and happily.
Meet the requirements of customers, provide the customers
Quality concept with the high quality products always
Take the honesty and trust as the foundations, benefit each
Business concept other and achieve an all-win result
Respect the talents, use the people and talents to the best
Talent concept advantage.
Always Keep improving, rigorously enforce rules and
Management concept regulations, pay attention to the actual results
Tenet of workers and staff Work hard and keep improving.
In "13th Five-Year Plan" period, the company puts forward the development mode of adhering
to innovation driving and "quality products + service", strives for making the main business of iron
and steel more competitive and higher in quality, and clearly establishes the strategic objective:
“build Bengang Steel Plates into the high quality plates production base with high competitiveness,
domestic first-class special steel production base and integrated service provider, as well as the
high-end, intelligent and green steel enterprise."
4.2 Guarantee of sustainable development System
◎ Integrated management system
In the daily production and operation, Bengang Steel Plates strictly follows the world's highest
management system standards, takes the relevant provisions of the system as the criterion,
follows the international practice, optimizes the management, and improve the efficiency. The
company obtains the certification of following international systems: the quality management,
environmental management, occupational health and safety management, energy management,
information management, measurement management, laboratory management and other external
system certification.
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
Classification of system Name of system
ISO9001
Quality management system
IATF16949:2016
Environmental management
ISO14001
system
Occupational health and safety
OHSAS18001
management system
Energy management system ISO50001(GB/T23331)
Informatization management “Integration of informatization and industrialization
system management systems - Requirements”
Measurement management
ISO10012:2003
system
Laboratory management system ISO/IEC17025
◎ Supervisory and internal supervision system of the company
Bengang Steel Plates continues to promote the construction of the internal supervision
system, and further improves the multi-level and all-round supervision system, such as the board
of directors, the board of supervisors, the audit system, the financial system, the legal supervision,
the discipline committee’s supervision, etc. By strengthening the system supervision and
regulation, process supervision, special supervision, and supervision check and evaluation, the
company strengthens the day-to-day management of the internal supervision system, timely
tracks the "Three-important and one-large" issues (important decision, important cadre appointing
and removing, important project arranging and large amounts of funds using) and the major risk
matters, gives the following documents to subordinates: “Interim Measures for the Supervision and
Inspection Work of Tour Inspection Institution” and “Management Measures for the Responsibility
Ascertaining and Investigation of Leading Cadres (Provisional)”, and makes greater efforts for the
supervision and responsibility ascertaining and ensures the smooth operation of the internal
supervision system.
4.3 Organization governance
◎ Organization structure
The company has formulated various rules and regulations, such as the “Articles of
Association”, “Rules of Procedure of the General Meeting of Shareholders”, “Rules of Procedure
of Board of Directors”, “Rules of Procedure of the Board of Supervisors” and “System of Work of
Independent Directors” strictly according to the requirements of the relevant laws and regulations
of “Company Law”, “Securities Law”, “Guidelines for the Governance of Listed Companies”, and
the relevant provisions of the China Securities Regulatory Commission, which clarify the duties,
competence, procedures and obligations to be fulfilled of the general meeting of shareholders, the
board of directors, the board of supervisors and the managing directors in all a spects of
decision-making, implementation and supervision, and form the governance structure of the
scientific division of labor, letting each person or organization perform its own functions and
effective checking and balancing of the organs of power, policy-making bodies, supervisory
institutions and operation institutions.
The board of directors is composed of 7 persons, including 1 chairman of the board of
directors and 3 independent directors. The board of directors has four special committees, namely,
Strategy Committee, Salary and Assessment Committee, Nomination Committee and Audit
Committee, and one of the independent directors of Audit Committee is an accounting
professional. The special committees hold themselves responsible to the Board of Direct ors and
the motions of the special committees are submitted to the Board of Directors for review and
decision. The company's institutional arrangement provides a full guarantee for the independent
directors and special committees to play their roles. The Board of Supervisors is composed of 5
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
persons, of whom 2 persons are the representatives of the workers and staff and the supervisors.
The members of the Board of Supervisors shall perform their supervisory duties in accordance
with “Company Law”, “Articles of Association” and the authorization of the General Meeting of
Shareholders.
The managing directors are in charge of organizing to implement the resolutions of the
general meeting of shareholders and the board of directors, take charge of production, ope ration
and management of the company and are in charge of organizing to lead the day -to-day operation
of the internal control of the company.
股东大会 of
Gen eral
shareholders
党委
Party committee Board 董事会
of directors
监事会
Board of supervisors
各专门委员会
Every speci al
committee 经理层
Managing directo rs
（（
Committe e of Communist Le ague
（ 安
Operation Improve. D.
Discipline Inspection C.
Energy Environment D.
党董 技（
Safety M anagement
Information Center
Organiz ation D.H uman Res ources D.
Equipment Depart.
Supervision Depart.
Purchasing Center
Unite d Front Work De part.
Ente rprise Culture De part.
Capital Manage. D.
规科 运 人（ 能 资 法 全 企（（（ 信
Plan Develop. D..
Technical Center
Tech. Develop. D
Manufac turing D.
办委事 采 销 术技
Propaganda De part.
Audit Depart.
Labor Union
Sales Center
Law Depart.
Financial D.
Resources.
划技 营 力组 财 制 设 源 本 审 律 管 业宣统团 息
Party Coffice .
Board Office .
公办会 纪 工 购 售 研术
office
发发 改 资织 务 造 备 环 管 计 事 理 文传战委 化
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◎ Condition of holding the general meeting of shareholders
The company adheres to selecting the appropriate time and place to hold a general meeting
of shareholders from the point of view of shareholders' rights and interests and in accordance with
the relevant provisions, and to choose the appropriate time and place to hold a gener al meeting
of shareholders, and timely notify the shareholders. All the general meetings of shareholders
adopt the voting method of combining the voting on the meeting site with the online voting to
ensure that the shareholders exercise their rights.
In 2018, the Company held a general meeting in which 13 motions, including “Report of Board
of Directors in 2017”, “Annual Report and Summary in 2017”, and “Profit Distribution Reserve Plan
in 2017” and so on were reviewed and adopted.
◎ Condition of disclosure of information
The company fulfills the obligation of information disclosure strictly in accordance with the
relevant laws and regulations and the relevant provisions of Shenzhen Stock Exchange and Hong
Kong Stock Exchange. The company establishes the normal internal verification procedure of
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
information disclosure, continuously improves the efficiency and quality of information disclosure,
and guarantees the authenticity, accuracy, completeness, timeliness and fairness of information
disclosure. Through China Securities News, Securities Times, Hong Kong Commercial Daily,
Juchao Information Network and Hong Kong Stock Exchange’s website, the Company truly and
detailedly has disclosed its operating performance and important matters to investors. In 2018, th e
Company disclosed four periodic reports and 47 interim announcements.
◎ Condition of profit distribution
The company attaches great importance to the return of investment to shareholders and has
formulated a long-term and stable profit distribution policy. On May 24, 2018, the Company's
shareholders' meeting reviewed and adopted the profit distribution plan in 2017, the earning per
share in 2017 is $0.413, and the cash bonus distributed per 10 shares is $0.50 and the proportion
of cash dividends is approximately 18%.
On July 11, 2018, the Company distributed the cash bonus to all the shareholders, and total
distributed cash bonus was 194 million Yuan.
◎ condition of communicating with investors
The company has formulated “Measures for the Administration of Investor Relations” to
regulate the work of contact and communication between the company and investors. In 2018, the
company communicated with the investors on the issues such as the development prospects of
the industry, the production and operation state and so on, and transmitted the value information of
the company. In addition, through some forms such as answering the questions of the investors
through the interactive platform, setting up the dedicated telephone to provide consulting services
to the investors and so on, the company communicated with the investors, answered questions of
the investors, which guaranteed the smooth communication between the company and investors.
The company strictly complies with the requirements of “Guidelines for Fair Information Disclosure
of Listed Companies”, and the issues of communication and exchange are based on the content
declared by the company.
◎ Protection of investors and stakeholders
The company conscientiously and effectively protects investors and related stakeholders:
> In the aspect of protection of shareholders' interests, the company formulates “Measures for
the Administration of Investor Relations” to steer the management of investor relations on the path
of institutionalization and standardization.
> In the aspect of protection of the interest of workers and staff, the company adheres to the
principle of making the income growth of workers and staff suit to the economic benefit of the
enterprise, establishes the wage growth mechanism for the workers and staff, and let the results of
the reform benefit the workers and staff; establish an environmental/occupational health and
safety management system to ensure the safety and health of the workers and staff.
> In the aspect of protection of supplier’s interest, the company establishes some
management systems, such as formulating “Supplier Management Measures” and “Measures for
the Administration of Tendering and Procurement” and so on, and implements the "transparent
purchase"; the company establishes the long-term strategic cooperative partnership with the
suppliers and improves the benefit-sharing and risk-sharing mechanism.
> In the aspect of protection of customer’s interest, the company adheres to the marketing
concept of serving the customers whole-heartedly, meets the demands of customers, aims at the
long-term interests of both sides and builds the long-term strategic partnership with the customers.
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
> In the aspect of protection of social interest, the company actively shoulders the social
responsibility and pays the taxes in accordance with the law, develops the circular economy,
promotes the energy conservation and emission reduction, promote s the low-carbon development,
improves the environmental/occupational health and safety management system, and establishes
the safety and environmental protection goals.
4.4 Competitiveness of enterprise
In 2018, in order to carry out the national industrial revitalization and development policy,
Bengang Steel Plates took deepening the reform of state-owned enterprise and technological
innovation as the main line, carried out the all-round, fully systematical and “being reborn” type
transformation to all the main production process chains. In the period from 2018 to 2020,
Bengang Steel Plates will start and complete the construction of technological transformation
projects in the aspects of product variety structure adjustment, new materials research and
development, green and intelligent manufacturing, capacity replacement and so on, and the
estimated total investment of the project will be 19.2 billion Yuan, which will enhance the core
competitiveness of enterprise and propel the company to promote the high -quality, green and
intelligent development of the enterprise.
◎ Input of the enterprise
> In 2018, the company focused on the key core links such as the product variety quality,
equipment upgrading, cost control and process and technology, continuously e nhanced the
product competitiveness, the capacity of the enterprise to earn profits and the process and
technology strength of the enterprise, and implemented 36 major technological transformation
projects, and actually completed the investment of 3.924 billion Yuan.
> In 2018, the company's investment rate in research and development was 2.22%, the sales
rate of new products was 46.45%, the sales volume of new products was 5.5968 million tons, and
there were 4 provincial science and technology awards and 200 patent applications.
> In 2018, the company speeded up the environmental protection governance and upgrading
of environmental protection equipment, and invested 2.309 billion Yuan to implement the energy
conservation and emission reduction projects construction.
◎ Promoting the scientific and technological progress
Closely around the works in the aspects of the research and development of product varieties,
product certification, tackling key problems in the scientific research, foreign cooperation,
obtaining the supporting of the national policies, research and development platform construction,
scientific and technological achievements, intellectual property rights and so on, Bengang Steel
Plates actively promoted the scientific and technological progress, took the improving of the
independent innovation ability as the goal, and took the improving of innovation input, operation
and incentive mechanism as the focal point of work, promoted the industrial upgrading and
product variety restructuring, comprehensively enhanced the technological innovation capabilities
and market competitiveness, and promoted the sustainable development.
(1) Condition of patent
In 2018, the company applied 200 domestic patents, among them, there were 99 patents of
invention, whose proportion in invention was 49.5%, 45 applied patents were granted the domestic
patent right, among them, 20 patents were the patents of invention to be granted, there were 2
international patent applications, and in the layout of international patent applicatio ns, the
company carried out continuous and advanced patent layout to the high -strength steel for the
third-generation automotive plate.
Example The patent innovation capacity of Bengang Steel Plates has been
affirmed
On August 15, 2018, according to “Notice of the State Intellectual Property Office on
Determining the State Intellectual Property Demonstration Enterprises and the Superior
Enterprises in 2018” (GZFGH ZI [2018] No. 158), Bengang Steel Plates Co., Ltd. was recognized
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
as "State Intellectual Property Superior Enterprise" by the State Intellectual Property Office.
(2) Condition of winning the prize
> There were four Liaoning Provincial Science and Technology Progress Awards: "Innovation
and Application of Key Technology of Whole Process of High-Quality Boron-Containing Steel" and
"Research and Development of 800 MPa-Level High-Forming Hot-Rolled Acid Washing Plate for
the Automotive" projects won the second prizes, "Research and Development of Anti -Process
Sensitivity Cold-Rolled Two-Phase Steel Serial Products" and "Function of A New Type of Venturi
High-Efficiency Reaction Desulfurization Device" projects won the third prizes.
> There was one Science and Technology Progress Award of China Automotive Industry:
"Development and Application of the Lightweight Set of Technology of Steel Wheel of Automotive"
won the third prize.
> There were 39 Science and Technology Progress Award: including "Research and
Development and Application of Process and Technology of Slag Stopping by Converter Slide
Plate" and "Research and Development of Ultra High Strength Hot Stamping Steel" that won the
first prize, 12 projects such as "Research of Rolling Process of 2300 Model Unit of Hot -Rolled
Acid-Washing Plate for Automotive Exported to the European Union" and so on that won the
second prize, and 25 projects that won the third prize.
(3) Technology innovation system
Bengang Steel Plates introduced the supplier early intervention service (EVI) mechanism,
established the technical innovation system that took the market as the guidance, took the
enterprise as the main player, and had the deep integration of enterprises, colleges and research
institutes, helped the customers shorten the research and development time, optimize the
performance, reduce the costs, and met the customer's needs for characteristics.
Now Bengang Steel Plates has the national-level technical center, the national-level physical
and chemical testing laboratory and the postdoctoral research station, the academician and expert
workstation, the Bengang Steel Plates-Northeastern University-Brilliance Auto joint laboratory,
Liaoning Province professional technology innovation platform of advanced high -strength steel for
automotive, Bengang Steel Plates has joined the China Pipeline Research Organization (CPRO),
Automotive Lightweight Technology Innovation Strategic Alliance, Strategic Alliance of
Technological Innovation of Corrosion-Resistant Steel Industry, China Society of Automotive
Engineers, Metallurgy Mineral Resources Efficient Development Industry Techno logy Innovation
Strategy Alliance, Liaoning Provincial Industrial Internet Industry Alliance, and Liaoning Provincial
Industrial Solid Waste Resources Utilization Industrial Technology Innovation Strategic Alliance.
By relying on the specialized laboratories, technology alliances and national-level scientific
research institutions, Bengang Steel Plates trains and hires large numbers of high -level scientific
and technological innovation talents, forms a number of research and development and technical
service teams having the strategic vision, innovative thinking and industrialization research
experience, forcefully increases the scientific research and product development level of the
enterprise and enhances the core competitiveness of the enterprise.
Example Obtain several development results of frontier products
Bengang Steel Plates, Northeastern University, Brilliance Automobile jointly set up a joint
laboratory of steel for automotive, and obtain gratifying achievements. The joint laboratory has
completed the research and development work of several new products and tackles the key
technical problems of several new products and makes the new breakthrough in the motorcycle
type project cooperation. They Include the development of frontier varieties such as the 1800 MPa
level, 1500 MPa level hot compacting steel, cold-rolled dual-phase steel DP980, 800 MPa level
hot-rolled acid-washing plate, as well as the cooperation results of white automobile body
lightweight EVI, the automotive part weight reduction, reverse engineering analysis and so on. The
research and development and application projects of 2GPa hot stamping steel serial products
has a great impact in the industry, and wins the "lightweight excellent design award - excellent
award" of Automotive Lightweight Innovation Strategy Alliance.
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
◎ Products with wide influence
(1) Ecological design of product
Bengang Steel Plates takes the development of green and high efficient steel products as the
goal, adheres to the concept of "using the iron and steel strength to support a happy life",
comprehensively considers the relevant ecological environment issues in the product
development stage, and closely considers the ecological, human health and safety, reduces the
resource consumption and promotes the sustainable development in the entire life c ycle of the
acquisition, production, distribution and sales, use and disposal of raw material.
(2) Market direction
In order to conform to the lightweighting development trend of the automotive industry,
Bengang Steel Plates makes great efforts to develop DP dual-phase steel, TRIP steel, QP
quenching and partitioning steel and so on, which are the advanced high strength steel varieties
that are sold well and earn the higher profit in the market, and forms the high value -added product
series such as the broad automotive panel products, alloyed automotive plate, galvanized
automotive plate and so on; in order to adapt to the household electrical appliances upgrading and
updating, the development trend of products toward the high -end product, and the energy-saving
and environmental protection development direction, Bengang Steel Plates vigorously develop the
high-strength, thin specifications, broad in width, green and environmental-protection household
electrical appliances plates; the market share of high-grade X100 pipeline steel and high-strength
container plate increases continuously.
(3) Manufacturing the green and environmental-protection steel products
The Company adheres to the differentiation new products development path, uses the
innovative products and service to continuously meet and guide the market's current and potential
demands, and lead the industry's technological progress:
> The environmental-protection fingerprint-resistance galvanized products of Bengang Steel
Plates and the production know-how of the environmental-protection fingerprint-resistance
products of Bengang Steel Plates with the independent intellectual property rights have won
several patent right. The technology level of the products has come up to advanced world
standards, and the mass production and application of these products has been started every
early, which are used to replace the imported similar products, in the period of 2015 -2018, the
created economic benefits is 112.1806 million Yuan, which successfully achieves the following
goal: this product is produced stably in large quantities and fills in the gaps in this kind of product of
Bengang Steel Plates and even Liaoning Province.
> The high-strength hot galvanized two-phase steel has a number of advantages: the
excellent mechanical properties and surface corrosion resistance, and this product is used widely
in the automotive safety parts, and the largest quantity demanded in the market at present is the
hot galvanizing 600 MPa level dual-phase steel, and this product is widely used in the automotive
reinforced structural parts. At present, Bengang Steel Plates produces the DP 590+Z hot
galvanized two-phase steel of more than 1,300 tons every month, which has become the
competitive products in the automotive plate of Bengang Steel Plates.
> The 1500MPa-level hot forming steel products of 1.0 mm - 6.5 mm in full thickness, jointly
developed by Bengang Steel Plates and Northeastern University, can be used for the automotive
anti-collision parts and the automotive chassis parts in the whole vehicle, among them, the
industrialization application of the 1500 Mpa level hot forming steel products with the extremely
thick specification is realized only in Bengang Steel Plates in China, and the tensile strength of this
product reaches 1400 to 1500 MPa, and the elongation rate is more than 6%, which comes up to
advanced world standards. Bengang Steel Plates utilizes its own equipment advantages and
technical advantages to successfully tackle key technical problems in the stable produc tion of hot
forming steel of 1.0 mm - 6.5 mm in full thickness, which makes Bengang Steel Plates become
one of a few domestic enterprises with the stable supply capacity in the large batches. The
research and development of 1500 MPa strength level hot-forming steel of more than 2.5 mm in
thickness is extremely difficult, and it is needed to solve the following problems: the insufficient
cooling speed of heart part of the steel product with extremely thick specifications makes the final
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
product have a uneven structure, and makes the performance of product not conform to the
standard. Bengang Steel Plates and Northeastern University jointly carry out the development of
this technology, and they make full use of the theoretical advantages of university as well as the
equipment and technical advantages of the iron and steel enterprise and successfully realize the
research and development, production and application of 1500 Mpa level hot forming steel
products of 1.0 mm - 6.5 mm in full thickness, which extends the use thickness of hot forming steel
to the extremely thick specification of 6.5mm, and this project is obviously advanced and
innovative.
> With regard to the various types of titanium alloyed high-strength steel
(Q345B\BG450C\BG550C\510L\700L) produced by Bengang Steel Plates, because of the good
economical efficiency of ferrotitanium, and comparing to Nb, V microalloying technology, the Ti
microalloying technology has a lower cost, therefore, in recent years, Ti's fine grain size
strengthening and precipitation strengthening effect has been paid attention to, and as a single
microalloy element to be added, Ti is widely used in Shandong Xingmin Steel Ring Co., Ltd., Qilu
Automobile Wheel Co., Ltd., Shenzhen Zhongji Special Vehicle Co., Ltd., Dalian CIMC Ra ilway
Equipment Co., Ltd, Shenyang Jinfa Wheels Co., Ltd., Dalian Jindo Container Co., Ltd., Jining
Junda Machinery Manufacturing Co., Ltd., Shanghai Shunye Iron and Steel Group Co., Ltd. and so
on, and the product win a lot of favourable comments, and cre ates a win-win situation in the
aspects of performance, quality and cost.
> With regard to the cold-rolled low alloy high-strength steel serial products, Bengang Steel
Plates has began to research and develop this steel product since the year of 2007, and at present,
Bengang Steel Plates has the capacity of providing the product in the large batches. In the period
from 2016 to 2018, the cold-rolled low alloy high-strength steel serial products of adding up to
205,000 tons are sold, which makes Bengang Steel Plates obtain the economic benefit of adding
up to 184.5 million Yuan, and this product is mainly supplied to the following automobile
manufacturers: Shanghai General Motor, FAW (First Auto Work), Brilliance, SAIC, Chery and GAC
and so on, and all the indicators of this product are the same as the those of actual products of the
domestic and foreign advanced enterprises, and this product is in the lead in the same industry,
and win a lot of favourable comments and recognition of the users in the course of use of users.
4.5 The economic value to be created and distributed
◎ Business income and business costs
Since 2018, due to the joint effect of following factors: the further development of supply-side
structural reforms, the greatly increasing demands of the steel market, the stricter supervision and
examination of environmental protection and so on, the steel supply and demand pattern has been
further improved, the prices of steel products become higher, and the prices of imported iron ore
are stable. In 2018, the output of domestic crude steel was 928 million tons, and the benefit of the
whole industry reached the best level in history.
In 2018, the average annual composite price index of the (domestic) steel products in China
was 115.92, which increased by 7.7% more than the average annual composite price index of
107.61 in 2017, and at the same time, the annual average price of iron ore Platts index of 62%
reduced by 2.6% as compared with the price in last year.
The volume of sales of commodity billet steel products of the company in the last two years is
shown in the following figure:
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
Sales volume
In 2018 In 2017
Sales volume of commercial billet products (ten thousand tons)
The total operating revenues and total operating costs of the company in the last two years
are shown in the following figure:
Total operating revenues and total operating cost
In 2018 In 2017
Total Total
operating operating
revenues cost
◎Profit
In 2018, the company faced such situation: all the blast furnaces were stopped for overhaul,
and at the same time, the company was affected by the foreign currency exchange rates, therefore
the total annual profit was 1,054 million Yuan, which was reduced by 862 million Yuan as
compared with the total annual profit in 2017, or 44.99%.
The total profits of the company in the last two years are shown in the following figure:
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
Total profit
In 2018 In 2017
Total profit
◎ Salary of workers and staff
In 2018, the company paid 1,859 million Yuan in cash to the workers and staff and for the
workers and staff. The condition in the last two years is shown in the following figure:
Salary of workers and staff
In 2018 In 2017
The cash paid to workers and s taff and for workers and staff
◎ Retained earnings and dividend distribution
The profit distribution reserve plan of the company in 2018: by audited by BDO China Shu Lun
Pan Certified Public Accountants LLP (special general partnership), the net profit of the company
attributable to the parent company in 2018 was 1,036,493,236.07 Yuan, plus the undistributed
profit at the beginning of the year of 1,103,162,610.35 Yuan, and then deduct the dividend actually
distributed of 1,945,887,269.82 Yuan in the last year, the balance of undistributed profit this time is
1,945,887,269.82 Yuan. The profit distribution reserve plan in 2018 is: take the company’s e xisting
capital stock of 3,875,371,532 shares as the base, distribute and pay the cash bonus of 0.5 Yuan
every 10 shares (including tax) to all the shareholders, and this time, it is planned to distribute the
dividend of ordinary shares of 193,768,576.60 Yuan.
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
In 2018 In 2017
Cash dividend distribution
◎ The supplier of capital
The company actively responds to the changes in the financial environment, expands direct
financing channels, studies and judges the interest rates and exchange rate trends and continues
to carry out the debt restructuring optimization scheme. In 2018, in an environment of tightening
liquidity, the company fully utilized the lower interest rates of domestic Renminbi (RMB) to reduce
the financing costs, guaranteed that the company used the lower cost for financing and fostered a
good and healthy company image in the financing market. The company reasonably distributed
the short-term idle funds for the operation, guaranteed that the funds were coherent, and used the
lower cost to smoothly complete the works of the dividends being la rge in sum, debenture
redemption when it expires, the exchange of currency for financing and so on.
In the aspect of risk management, Bengang Steel Plates quickly responds to interaction,
takes the decisive measures, draws up the reserve plan, adopts the tactics, pays attention to the
change trend and controls the exchange rate management cost within the bearable range in the
course of quick Renminbi depreciation in the middle of the year. By implementing the long -term
management and control mechanism of operating the capital, the company controls its operation
funds at a reasonable level, and avoids the risk of price fluctuations and capital occupation risk.
The company further explores and improves the commodity hedging system, increases the
capacity of price risk management. The company selects the cooperative financial institutions
according to the comprehensive conditions such as the credit state of financial institutions, the
business strength and the public credibility in the market, and fully coordinates cooperative
relations with financial institutions. The company always pays attention to the development of
cooperative relations between the bank and the enterprise, and at present, the company has
signed the bank and enterprise cooperation agreement, the whole credit extension agreement and
the borrowing and paying back at any time agreement, etc. with the major commercial banks,
which guarantees the financing channels and financing prescribed amount.
The total interest expenditure was RMB1,279 billion Yuan in 2018.
In 2018 In 2017
Interest expenditure
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
V. Green Benxi Steel
5.1 Green Products
Benxi Steel makes sustained efforts to promoting the strategy of “Green, High -quality and
Smart Manufacturing” and “Building a urban steel factory featured by city and industry i ntegration
and ecological harmony”, focuses on cost reform, technical innovation, service first and smart
manufacture, and constructs the enterprise developing strategy with the concept of steel builds
beautiful life.
◎ Green Steel Products
“Benxi Steel” products have entered more than 100 key enterprises in 13 domestic major
industries, including petrochemical industry, transportation, and national defense scientific
researches, automobile and household appliance. Automobile wheel used “Benxi Steel” hot-rolled
steel plate and steel strip has been rated as “excellent quality prize” by China Iron and Steel
Association, “Benxi Steel” cold-rolled P-added high-strength steel strip, 400CrH series automotive
steel, engineering machinery used 15B35Cr-M1 steel and cold-rolled non-oriented electrical
steel are awarded as “Gold Cup Quality Product” by China Iron and Steel Association, and “Benxi
Steel” carbon alloy structure steel and automobile gear used steel are named as “Lia oning
Famous-Brand Product”.
Bengang Steel Plate is committed to green development and low-carbon solutions for iron and
steel industry chain; has realized the research and development for products of cold -rolled and
galvanized extra-deep drawing steel, high-strength steel and automotive electric appliance plates;
and is capable for volume production of 1000MPa cold-rolled products and 600Mpa hot galvanized
products. It now owns 8 major series of cold-rolled and galvanized products and over 100 brands
which are well accepted by automotive industry and household appliance industry and accesses
to overseas markets.
Automobile structure used hot-rolled steel, pipeline steel, construction steel, container steel
and railway steel are in domestic advanced level compared with other brand products, among
which some varieties of X70, X80 high-grade pipeline steel and RS590 high-strength lightweight
wheel steel are in the domestic leading level.
The total output of new hot-rolled products in 2018 was 56580 tons, among which 4097 tons
of 21.4mm X80 pipeline steel were used for China-Russia Eastern Gas Pipeline, 11658 tons of
X70M pipeline steel were exported to India, 522 tons of N80 oil casing used steel, 9183 tons of
RS590 lightweight wheel used steel, 521 tons of 58CrV4 tool steel, 30599 tons of other new
products. The amount of newly developed RS590 unique products was 9183 tons, accounting for
16.2%.
Benxi Steel owns automotive steel possesses deep drawing mild steel products, P-added
high strength steel, baked and hardened steel, deep drawing high-strength steel, low-alloy
high-strength steel, dual-phase steel, transformation induced plasticity steel and hot-press molded
steel, and provides automotive plates of complete varieties and specifications. The products are in
domestic leading level, and our quality control also ranks top in the industry, and our hot -press
molded steel achieves national advanced level, and part of our products are world debut. The
2000MPa hot-press molded steel processed by hardening treatment (co-developed by Benxi Steel
and Northeastern University) has a strength exceeding 2000MPa, and a ductility bigger than 6%,
the elongation of which does not decrease as the strength increased comparing with 1500MPa
hot-press molded steel, and it also solves the problem of high strength steel delay fracture by
special process design, the product performance index is superior to similar products in the world
wide.
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
In 2018, Benxi Steel developed 10 new automotive plates products, including HC550/980DP,
QP980, 380/590TR, St52, HC260P and HC460LA cold-rolled steel plate; HC250/450DPD+Z,
HC300/500DPD+Z, HCT780T+Z and DP980+Z galvanized steel plate, with a total amount of
3020tons.
In 2018, the output of silicon steel products was 138,515 tons, including 12 tons of 35W440,
388 tons of 50BW470, 24066 tons of 50BW600, 96721 tons of 50BW900, and 17328 tons of
50BW1300.
In 2018, the output of electric galvanized products was 10058 tons, mainly were household
appliance used EGN5 products (accounting for more than 80% of the total contract amount), a
small amount of SECC products, and the rest were DC06E+Z phosphating products for
automobile boards use, DC04E+Z and DC06E+Z single-side galvanized plates for automobile
Fuel tank use.
In 2018, the total output of pickling products was 404,905 tons, of which the total output of
new products was 112,153 tons. The new products include 16,401 tons of steel for automotive
deep drawing, 27,732 tons of steel for automobile structure, 17,484 tons of automotive high yield
strength ratio steel, 5,160 tons of steel for automotive high strength structure, 5,157 tons of steel
for wheel and cross beam, 27,559 tons of steel for welding steel bottle and welding pipe, and
12,657 tons of other new products.
◎External Approval of Green Products
The steel plate strictly complies with the highest international quality and safety standards,
and has passed ISO9001 (Quality Management System), ISO14001 (environmental management
system), OHSMS18001 (Occupational Health and Safety Management System) and ISO/TS
16949 (Automobile Steel Plate Quality Management System) certification. Benxi Steel is China’s
first quality management innovation base in metallurgical industry. The products have been
accepted by General Motors, Toyota and other international famous enterprises, China National
Petroleum Corporation and Sinopec, and certified by classification societies in Britain, the United
States, Norway and other nine countries. In 2018, a total of 56 brands of cold rolling and
galvanized products have been certified, covering the world famous brands such as
Mercedes-benz, BMW, General Motor, Nissan, Ford, Fiat and Renault, which indicates that Benxi
Steel is qualified and capable of material supply for world-class automobile enterprises.
(1) Automobile sheets have 1 brand certified by General Motors (cold-rolled CR590T/
340Y-DP) and 9 brands certified by Mercedes-benz (cold-rolled DC04, HC260LA, HC380LA,
galvanized DX52D+Z, DX54D+Z, DX57D+Z, HX260LAD+Z, HX340LAD+Z, HX380LAD+Z);16
brands certified by GM-Wulin (cold-rolled DC01, DC03, DC04, DC05, DC06, HC260LA, HC300LA,
HC340LA, HC380LA, HC420LA, 170P1, 210P1, 280VK, 250/450DP, 340/590DP, 420/780DP); 8
brands certified by FAW-Volkswagen DY models (cold rolling DC04, DC05, DC06, CR4, CR5,
HC180B, HC220B, tl1550-220);1 brand certified by Brilliance Auto (pickling PHS150);1 brand
certified by Chongqing Zhixin (cold rolling PHS1500);Wuxi Langxian provides 1 brand to Kailong
New Energy (cold-rolled PHS1800) and Liaoning Tianwu Plate provides 1 brand to FAW
(cold-rolled PHS1800).
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
(2) Household appliances used silicon steel products have been certified by Dalian Wiest
Roller Motor and Jiamusi High Voltage Motor; Electric galvanized products certified by Changchun
Huaxiang DC04E+Z, Chengdu Lingchuan fuel tank used passive products DC05E+Z, Changchun
Engley Auto used phosphating DC06E+Z, some products have been used for bulk supply;
certification for hot rolled pickling board product is mainly by automobile factories, and has
successfully passed the product quality certification of by SHAC, Saic Motor, Qingdao Volkswagen,
Jiangling Automobile and Valeo and other domestic famous automobile factories and processing
equipment factories. The certification products mainly involve hr440t-sa, QStE420TM, HR500LA,
BG420L, S315MC, QStE340TM, HR2, SPHC, SAPH440 and so on. Up to now, we have started
the batch supply work, and the overall usage is good.
◎ Typical Green Products
（1）High-strength Steel: weight reduction and energy saving
As Q960E is put on the market, the hot-rolled high-strength steel of Benxi Steel has become
to be a completed product series the yield strength of which reaches 960MPa and is well used by
engineering machinery and vehicles all over at home and abroad, and the product quality is stable
and reliable, reaches domestic advanced level, among which RS590 lightweight high-strength
wheel steel is in leading domestic level.
High-strength steel is featured with high strength and long service life, being a sustainable
green product. High strength steel used in construction machinery and automobile manufacturing
can save materials, increase effective load and reduce fuel consumption, and is the preferred
material for "weight reduction and energy saving".
For example, dumper carriage material is changed to be Q550 D high-strength steel from
Q345B low-alloy steel, its thickness is reduced to be 6mm (for bottom) and 4mm(for side) from the
original 100(for bottom) and 8mm (for side), the carriage weight is decreased to be 5.2 tons from
original 6.5tons, reduced 1.3tons, namely 20%, saving a cost of 2600RMB. As per reports, for
every 10% reduction in vehicle quality, fuel consumption will drop by 6 -8% and emissions by 4%,
thus, weight reducing can drop 12% to 16% fuel consumption, save 4 to 6L/kilometers fuel, and
reduce emission by 8%.
（2）Container used Steel-Low Carbon and Weather Resistant
Bengang Steel Plate, as a first echelon container coil supplier in China, once supplied SPA - H
with an annual amount of 700000 tons with stable the product performance and quality. The
products are widely used by CIMC, CXIC, QPCL Container and other large container
manufacturing enterprises, and are well accepted by users, and the product quality is equal to that
of Shougang Group, Taiyuan Iron and Steel and Baosteel.
The container used steel has good corrosion resistance that prolongs the service life of
container and reduces the consumption of resources and energy.
（3）Pipeline Steel
The research and development of pipeline steel products of Benxi Steel has always been in
the first echelon of domestic steel factories. The products are supplied to CNPC, CNOOC, Sinope
and other enterprises, and exported to India, the Middle East, South Korea and other regions. The
annual supply reaches 400,000 tons, among which X70 and X80 reach 240,000 tons.
（4）Railway Used Steel
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
Q450NQR1, 09CuPTiRe and other steel types used for railway vehicles passed product
certification by Ministry of Railways in 2006, and realized bulk supply. Benxi Steel once was a first
echelon domestic railway vehicle used coil supplier, and now is processing on re -certification by
CRRC.
（5）Advanced High-strength Steel Product: weight reduction and energy
saving
Advanced high-strength steel is a green product with sustainable development and featured
by high strength and long life. The advanced high strength steel products such as DP780, TR780,
DP980 and QP980 are used in the automobile manufacturing industry, a nd are the preferred
material for weight reduction and energy saving. The impact safeness of automobile can also be
improved by increasing the strength of steel plate but reducing its thickness.
By improving the steel plate strength and reducing the thickness of the steel plate, it can also
improve the safety of car collision
（6）Green Electro-Galvanized Product
EGN5 electro-galvanized fingerprint resistant plate is mainly used for LCD TV and display
backboard. DC06E+Z phosphating galvanized plate is mainly used for high-grade vehicle interior
parts that need complex deformation.
（7）Hot-rolled and Pickled Plate
Reducing consumption, cost and environmental pollution is mainly reflected in the following
three aspects:
First, the successful development of high-strength hot-rolled pickled plate, especially the
successful development and application of products above 590MPa. High strength steel plate is
featured by high strength and long life, belongs to the sustainable green products. The usage of
high-strength steel by automobile industry not only can save the material, but also can enhance
passive safety performance under vehicle impact, being the first choice for “weight reducing and
energy saving”;
Second, the successful research and development of thin hot-rolled and pickled plate,
especially products thinner than 3.0 mm which successful replaced the cold -rolled plate for the
volume production of interior car structural parts; compared with cold -rolled plate, the pickled plate
can guarantee the surface quality and reduce the purchasing cost. According to relevant statistics,
using hot-rolled pickling plate to replace the cold-rolled plate of same strength level can salve 10%
raw material cost;
Third, comparing with the ordinary hot-rolled plate, its surface quality is good, hot-rolled
pickling plate removes iron oxide on the surface which improves the surface quality of steel and
makes it easy for welding, oil liquoring and painting. The hot-rolled pickling plate has successfully
replaced the original production mode of press forming and then pickling, which has greatly
reduced the environmental pollution caused by dispersed pickling.
◎ Green Customer Solutions
（1）Solutions Based on Customer Requirements
The company gives full play to the technical advantages of green steel products in research
and development, molding, analysis and user technology research, and takes technical service s,
product development, early vender involvement, (EVI), integrated solution (package arrangement),
win-win solutions to meet the special needs of users." Early Vender Involvement" refers to the
involvement of the material manufacturer in the early stage o f product development by
downstream users to fully understand the requirements of users on the performance of raw
materials, so as to provide customers with materials with higher performance and personalized
services.
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Cases "Industry-university-research and application" Joint Laboratory
Bengang Steel Plates, Northeast University and Brilliance Auto
set up a joint laboratory of automotive steel, which has made
gratifying achievements. The joint laboratory has completed a
number of new product research and development and technical
breakthroughs, and has made new breakthroughs in vehicle model
project, including forefront product development, such as 1800MPa
class, 1500MPa hot pressed section steel, DP980cold rolled dual
phase steel, 800MPa hot rolled pickling plate, as well as cooperation achievements, such as
light-weight EVI of body in white, weight reduction of auto parts, reverse engineering analysis and
so on.
Cases The World First 2000MPa Ultra High-strength Steel
Hot stamping of 2000MPa ultra high-strength and toughness section steel rolled off the
production line smoothly. This is the first time that super high strength steel products of this tensile
strength class have been put into mass production and application worldwide. As the world's
highest grade of hot stamping formed steel, 2000 MPa hot stamping formed steel can greatly
improve the safety of cars, at the same time achieve the parts weight reduction of 10% to 15%,
greatly reduce the production cost of automobile enterprises, social benefits an d economic
benefits are very considerable.
Cases QP Steel Series Product Development
The development of QP steel series products promotes the environmental protection of the car
body used steel, lays a good foundation for future energy conservation and emission reduction
and improving the corrosion resistance of security structural parts. It promotes the volume supply
to Japanese, EU and American brands, and gives a strong support for the lightweight
development of automobile industry.
Cases Development of RS590 High-Strength Wheel Steel
Shandong Longkou Xingmin Steel Rim Co., Ltd., a famous wheel manufacturer in China, was
in urgent need of a wheel rim material so as to it could realize the target of 10% weight reduction
for 34kg 22.5*8.25 commercial vehicle wheel, and also required the wheel radial fatigue life
platform test exceeds 1 million times. Benxi Steel successfully developed RS590 high strength
wheel steel and met the customer’s target of weight deduction. RS590 effectively overcomes the
forming and welding difficulties existing in the wheel manufacturing process of high strength steel.
Meanwhile, the wheel radial fatigue life platform test reaches 1.4 million times, which is well
received by users and the sales volume reaches 31,000 tons.
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（2）Follow up the green service concept of sustainable development
"Clear water and green mountains are mountains of gold and silver". Bengang Steel Plate
continuously follows up the update and change of domestic and foreign environmental protection
laws and regulations and the development of users' green demands, and make internal
assessment to ensure that all seven categories of products including hot rolling, pickling, cold
rolling, hot galvanizing, electric galvanizing, electrical steel and special steel meet the
requirements of RoHS directive, REACH and other laws and regulations. It consciously accepts
the supervision of the society, and regularly entrusts the third-party inspection institutions to test all
the products, and published a total of 27 third-party inspection reports of all the carbon steel
products.
◎ Provide Excellent Service
Bengang Steel Plate adheres to customer-oriented concept , constantly improves and
enhances the effectiveness of customer and product services and operational efficie ncy. The
company strengthens customer complaint management system, considers customer complaints
from the standpoint of customers, actively takes effective measures to improve customer
satisfaction, so as to meet customer needs. Customer satisfaction in 20 18 was 97.10.
Bengang Steel Plate set up ten domestic branch in northeast China, north China, east China,
south China, central south and other places; five overseas branches in Hong Kong, South Korea,
Vietnam, Europe, the United States and other countries and regions; four processing and
distribution centers in Benxi, Tianjin, Shanghai, Shenyang and other places; and technical service
group and the after-sales service group providing full-time services. The company perfects
marketing service network to meet the needs of domestic and foreign market.
Harbin Branch
Changchun Branch
Shenyang Branch
EU Branch
Tianjin Branch
Shandong Branch
South Korea Branch
Wuxi Branch
Chongqing Branch Shanghai Branch
America Branch Xiamen Branch
Guangzhou Branch
Hongkong Branch
Vietnam Branch
Bengang Steel Plate always put customer needs as first, and selects the target market,
making market strategy based on production line positioning, product positioning, area positioning,
customer positioning, market research, the market segmentation as per customer requirements,
the company strategy development and its own advantages.
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
From the application point of view, hot-rolled products are
mainly used in construction, automobile manufacturing, oil Production line positioning
pipeline, the container industry, cold-rolled plates are mainly
used in automotive, household appliance manufacturing,
Product positioning
electronic, chemical industries; plating plates are mainly used
in automobile manufacturing, household appliances
manufacturing, construction, decoration and packaging Market and Customer Demands
industries; non-oriented silicon steel are mainly used in
Area positioning
compressor motors, general motors, small precision motors
and EI transformer industry; and the special steel are mainly customer positioning
used in petrochemical industry, energy and transportation,
machinery manufacturing, aerospace and other industries.
Bengang Steel Plate aims to do well in five domestic markets: northeast, north China, east
China, south China, southwest. Northeast China, north China and east China are the key markets
to be developed and consolidated, as well as the main markets for products and services. East
China is the key automotive board product market; South China is the target market for high
value-added products such as household appliances. For the international markets, there are
"three moves”: perform intensive operation in traditional markets, find proper location in EU market,
and then plan well the “One Belt and One Road”. Asia is the key target market, especially the
South Korea that is the key market of hot-rolled products, and it’s the key export market that needs
consolidation and continuous development; pay close attention to and develop Southeast Asia,
Japanese, Taiwan Market and other One Belt and One Road related countries. EU market is the
key market for construction machinery and building used steel plates, and needs to be developed
vigorously based on current condition. North America and Australia are key markets of cold -rolled
and plating products, and there are vast market potentials for Benxi Stee l’s products and
re-products.
● Bengang Steel Plate continuous improves the 3 level service system to build a site
reprehensive service system that closely surrounds the regional market and supported by sales
department and regional companies; an after-sales service system represented by customer
service department, and a manufacture-sales-research system taking research department,
manufacture department and each manufacturing plant as the core. The company carefully
identifies customer special characteristics, and develops measures for quality-oriented and
product developmental projects to provide effectively and comprehensive services as per
customer needs.
● Bengang Steel Plate steadily boosts the non-car EVI project, on the basis of "differentiated"
marketing strategy, implements the strategic requirements of transformation from
manufacturing-led to service-led, through customer visit, investigation and forum, discussion and
project implementation, actively explores and expands in household appliances, petrochemical
industry and metal processing to implement EVI service in non-poses area and enrich marketing
services.
● Bengang Steel Plate strengthens the information service of objection management,
establishes CS customer service management system, standardizes objection processing,
improves the efficiency of objection handling, and realizes rapid response. The realization of
information sharing in mobile terminals enables customers know in time and supervise the steel
objection processing process.
● Bengang Steel Plate improves the customer visit administration system, and divides the
customer group into strategic users, key users and ordinary users such three levels, based on
service levels customer required, customer contribution to company’s econ omic benefits, loyalty,
consumption and other aspects, to recognition and optimization, form a visit plan to key users and
above and company senior leaders’ schedule, implement the multidimensional and hierarchical
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
users visit exchanges and promote effective visit and exchange as per department plan. Visits and
exchanges at all levels not only deepens strategic partnership with important users, but also
promotes the exchange and cooperation between Benxi Steel and the users, promoting the
complementary advantages of both sides.
5.2 Green Manufacturing
The company, based on the three functions of the whole process integrated joint steel plant -
"advanced iron and steel products manufacturing, efficient energy processing and conversion,
comprehensive utilization of bulk waste ", adheres to the resource utilization efficiency priority rule
and "3R " (reduction, reuse, recycle) principle, seeks low carbon technology for continuous
improvement, constantly reduces the resource and energy consumption in production; based on
the whole life cycle environmental management concept, adopt advanced production technology
and pollution control measures to prevent at the sources, control the process and conduct end
treatment, and strengthen the process management to complete the production process of steel
products with the minimum consumption and minimum emissions.
◎ Comprehensive Utilization of Resources and Energy
（1）Bengang Steel Plates Co., LTD's major resource and energy consumption in 2018 are as
follows:
Main Energy Consumption in 2018
Resource Type Unit Consumption
Finished iron ore 10 thousand t 1387
Steel Scrap 10 thousand t 111
Coke 10 thousand t 416.9
PCI Coal 10 thousand t 112.9
Steam Coal 10 thousand t 41.7
Cleaned Coal 10 thousand t 639.1
Electricity a hundred million KWh 52
Fresh Water 10 thousand t 3679.2
Main Energy Index of 2014-2018
Index Name Unit 2014 2015 2016 2017 2018
% 100 98 100 102 99
Comprehensive
energy
consumption per
ton steel
% 100 99 103 99 99
Total amount on
surplus energy
recycling
% 100 97 83 96 102
Fresh water
consumption of
per ton steel
Note: Use 2014 as the baseline, the data in above form is scale value.
（2）Utilization of Solid Waste and By-product Resources
In recent years, the comprehensive utilization rate of steel slag of Bengang Metallurgical Slag
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
Company has basically maintained at 100%. The existing steel slag treatment projects include
steel slag hot splash project, hot steaming steel slag recycling project and supporting slag
processing line, 7 steel slag processing lines and high-span drop hammer room.
The steel slag of converter is treated with hot steaming process, then crushed and screened
by magnetic separation line, 35% of the converter waste slag concentrate powder, magnetic steel
slag particle, slag iron, granular iron and steel slag powder. Refining slag, desulfurated slag and
landing slag are treated by hot splash, after which 35% of converter waste slag concentrate,
magnetic steel slag particles, slag iron, granular iron and tailings are separated by magnetic
separation line sieve. The large slag iron will be shipped to the processing workshop to be crushed
by drop hammer, cut and broken, and then shipped back to the steel mill. If the grade of slag iron is
above 70%, it will be returned to the steel smelting plant to replace scrap steel. The recycled steel
slag magnetic separation powder (with iron grade of about 35%) is returned to sinter burdening.
Recycled refractory materials in the landing waste of converter shall be handled by Benxi Steel
International Trade Company for export. Mixed tailings also shall be handled by Benxi Steel
International Trade Company for export.
◎ Energy Saving Management and Carbon Emission Reduction
The company closely tracks the cutting-edge technology of low-carbon technology in the steel
industry, and adheres to the concept of whole process technology energy conservation, energy
structure optimization and gas and chemical products continuous improvement. It has adopted a
large number of advanced technologies such as low-grade residual energy recycling and energy
saving in industrial furnaces, and steadily developed the application of new ener gy and low-carbon
fuels.
（ 1） Energy Saving on Management
In 2018, through daily energy report, the company conducted analysis on energy
consumption data, timely found and solved energy problems and improved the timeliness of
energy process management. The company vigorously carried out all-round economic operation
and peak avoiding production, effectively reducing power consumption; strengthened energy
measurement and invests in improving the measuring instruments at all levels to provide sufficient
basis for energy consumption analysis; and completed three supplies (water supply, power supply
and heat supply) and old facility removal and transfer work, all which reduced the burden. The
quota of power was 278 million RMB from the budgeted figure; in June, the comprehensive energy
consumption per ton steel reached 591kg, being the best level in history.
（ 2） Energy Saving on Technology
The company has fully applied key energy-saving technology and equipment and residual
energy recovery measures in the industry, and invested in the application of some advanced new
technical means to continuously reduce energy consumption in the steel production process. At
present, the company is building an 180MW CCPP generator with low calorific value gas. After the
equipment is put into production in 2020, the company's self-generating rate will be significantly
improved. In 2019, the company will complete more than 60 investment projects on energy
conservation measures, including promoting the application of new technologies such as green
lighting, frequency conversion and energy conservation technology, permanent magnet speed
regulation and energy conservation technology, and high-efficiency and energy-saving water
pump technology, and eliminating a number of energy-consuming motors and transformers.
Process Key equipment energy-saving technology application and residual energy recycling
measures (waste heat)
Iron Smelting √ Sintering ring-cold waste heat recycle and supporting power generation
√ Waste heat recycle for blast furnace slag water
√ Wet blast furnace dust removal and TRT power generation
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√ Recycle of waste heat for hot air furnace flue gas
√ Recycle for waste heat from sintering flue gas
Steel-making √ Waste heat boiler for converter
√ Waste heat boiler for electric furnace
√ Vaporization cooling system for steel-making
RH Storage Capacity Expansion and Optimization
Steel-rolling √ High efficient furnace combustion technology
√ Gas and air preheating technology
√ Replacement for process energy saving use
√ Recycle of waste heat from low temperature flue gas
√ Steam-cooling of heating furnace
√ Coke oven high temperature and high pressure dry quenching and power
Coking
generation
√ Recycle of waste heat in high temperature section of primary cooler
Energy and
Public Auxiliary √ Recycle of boiler smoke sensible heat
Works
√ Low vacuum heating for generator set
（ 3） Energy Saving for Process
By simplifying the process flow and adjusting the imbalance of production and supply, the
company adjusts the process of dematerialized water, living water and nitrogen system to reduce
water displacement and living water consumption, so as to make up for the imbalance of the
company's oxygen and nitrogen system and reduce the electricity consumption.
Research on energy saving technology for oxygen and nitrogen
Cases
production capacity adjustment
Through increasing production of oxygen, nitrogen and argon in the two factories, 68,100 tons
of liquid oxygen and liquid nitrogen liquid argon were sold, creating an effect of 75.439 million
RMB. The No. 6 oxygen generator of Bengang Steel Plate Company was overhauled, which
solved the problem of insufficient argon gas production; No. 6 and No. 7 oxygen generator was
reformed to increase nitrogen production by 30,000 m 3 per hour, which eased the shortage of
nitrogen and avoided the frequent operation of No. 4 and No. 5 oxygen generator, and it saved
100,000 kWh per day during the joint inspection
（ 4） Carbon Emission Reduction
By carrying out carbon inventory, Bengang Steel Plate starts from the steel production
process, actively explores the technological energy conservation of the whole process , contributes
to the ecological civilization and the realization of low-carbon development, analyzes and studies
the carbon footprint of the production process, further clarifies the characteristics and key points of
the company's carbon emission, and makes corresponding carbon emission reduction
countermeasures. As per Ministry of Ecological Environment on “Notice on Annual Carbon
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
Emission Report and Verification and Emission Monitoring Plans in 2018” (HBQHH [2019] No. 71)
and the unified arrangement of Liaoning Province, carbon emission examination to Bengang Steel
Plate Company and relevant examination report was conducted, and the company will give
management on carbon assets according to the actual carbon emissions after national carbon
emissions quotas is issued.
The company has developed a low-carbon development path based on saving energy and
upgrading utilization efficiency, and continuously strengthened the application of advanced
energy-saving and low-carbon technologies, and implements the promotion and application of a
number of key general energy-saving and emission reduction technologies in the steel industry.
With the expansion and deepening of the functions of energy management center, the company
has greatly improved the data collection and transmission of energy utilization. The company will
further take measures in the reform of energy-saving and low-carbon technologies, including the
application of advanced technology for energy conservation, efficient utilization of low-temperature
waste heat, new energy and renewable energy utilization, etc.
◎Industrial Environmental Management
Through the implementation of engineering transformation, management and technology
upgrading, the company constantly strengthens the environmental protection pro cess
management, ensuring that the pollutant discharge is fully qualified and controlled and the main
environmental protection indicators can be continued to be improved.
Pollutant Emission of Per Ton Steel in 2018
Item SO2 NOx COD Ammonia
Nitrogen
Emission per ton steel(kg/ton 0.434 0.913 0.038 0.011
steel)
Key Control Measures
（1）Respond to national and local cleaner production requirements
Steel Plate Company actively responds to the requirements of the national and local cleaner
production, till the year end of 2018, 11 units of the company (iron and steel mill, steel mill, co king
plant, power plant, special steel plant, hot strip plant, cold rolling plant, cold rolling plant II, cold
rolling plant III, water supply plant, gas plant (main power factory) )finished clean production audit,
and met the requirements of cleaner production of various technical indicators.
（2）Continuous Upgrading and Reconstruction
The company has been working on upgrading and reconstruction of environmental protection
projects and working process as per laws, regulations and emission standards for years: the blast
furnace casting house, coke tank, roof, coal powder preparation system with film-coated cloth bag,
fold cloth bag dust collector reaches ultra-low emission; sintering dust, entire grain, supporting
electric precipitator, electric dust remover or cloth bag at the tail, electric precipitator at the head +
wet lime and gypsum desulfurization; power generation boiler flue gas desulfurization and
denitrification, coking, coaling, coke pushing, converter final bag-type dust remover. At present,
the reconstruction of the combined heat and power production of No. 3 Power Plant, the complete
matching of dust removal, desulfurization and denitrification facilities for the coal fired boiler in the
high-pressure workshop, Maerling pelleting desulfurization, desulfurization of No. 4 Electric Field
of the 566m2 sintering machine in the iron refinery and the transformation of the concentrated
brine treatment in the power plant have also gradually improved the reuse rate of sewage in the
plant and reduced the total amount of wastewater discharged.
Through the above environmental protection renovation, the emission of key pollutants such
as SO2, NOX, COD and ammonia nitrogen of enterprises has been greatly reduced, and now it
can reach the domestic advanced level or even the international leading level. In 2018, sintering
desulfurization efficiency was 91.21%, power generation desulfurization efficiency was 97.45%
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
and denitration efficiency was 88%.Online monitoring shows that pollutant discharge fully meets
the requirements of national standards. In terms of optimization of unorganized particulate matter
emission index, Bengang Steel Plate Company has covered the Tuanshan material yard of the
raw material system with wind protection and dust suppression net, set up s praying and dust
suppression facilities, upgraded the converter's secondary dust removal, and fully captured the
smoke and dust from the smelting process.
Bengang Steel Plate Company Power Plant Annual
Desulfurization and Denitrification Efficiency
Efficiency
2017 2018
Desulfurization Denitrification
（3）Improve process control to ensure stable and efficient operation of
environmental protection facilities
There are more than 170 sets of waste gas treatment and environmental protection facilities
in the steel plate plant, 70 sets of online monitoring fa cilities, and 13 monitoring cameras.
Environmental protection facilities operate synchronously with main facilities and provide stable
online data transmission. All pollutants discharge meets the requirement of relevant standard.
According to the management system formulated by the company, each factory carries out routine
inspection, maintenance and inspection, and spot check of environmental protection facilities and
effectively controls pollutant discharge through camera monitoring.
（4）Investment on Environmental Protection Facilities
Bengang Steel Plate has accelerated the construction of environmental protection treatment
and environmental protection equipment upgrading, invested 4.469 billion RMB in total (885
million RMB in 2016, 1.275 billion RMB in 2017 and 2.309 billion RMB in 2018) to implement
energy conservation and emission reduction projects. It has finished sintering machine
desulphurization in steel plants, desulfurization and denitrification for combined heat and power
generation in No. 3 workshop of power plant, No. 7blast furnace overhaul in iron mill, upgrading
for dry dedusting, and energy saving reconstruction for TRT system, the casting house and raw
material dust remover on the top of furnace of No. 1 new blast fu rnace, the casting house and raw
material dust remover on the top of furnace of No. 6 blast furnace and steel finishing and dust
remover. In 2019, 100 million RMB will be invested to carry out the renovation of the environment
protection measure, covering flue gas desulfurization and denitrification for 2 set of coke oven,
VOCS exhaust gas purification, primary dedusting of converter in steel mill, anti-dust net
construction and spray facility reforming of raw material plant.
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
（5）Strengthen system building and continue to improve environmental
risk management level
The management of all steel factories and mines comply with the environmental management
system. On June 9, 2017, the company completed the certification replacement work of GB/T
24001-2004/ISO 14001:2004. 2018 is the first year after obtaining the certification of the new
environmental management system, the company completed the version change audit by
14001:2015 environmental management system, implemented the concept of life cycle and risks
and opportunities in the new certification, learned to master environmental policies and
regulations, fully understood the requirements of relevant parties, and revised and improved the
“Environmental Factor Identification Control Procedure” and other procedural documents. Faced
with the increasingly severe external pressure of environmental protection, the company has
compiled and issued “Provisions on Responsibilities for Environmental Protection Work for Benxi
Steel Group”, confirming the principle of "the party and government share the same responsibility,
two duties for one post, performing obligations while enjoying rights, conducting joint management
and green development", strengthening the awareness of environmental manage ment, and
improving the level of environmental risk management.
（6）Enhance Environmental Monitoring
In 2018, the company carried out monitoring of 150 pollution sources of flue gas, 10 waste
water monitoring points, 5 noise points at the factory boundary, 27 atmospheric dust fall points and
60 unorganized monitoring points. The monitoring was divided into weekly, monthly, quarterly,
half-yearly and annual frequency according to the monitoring plans and all the monitoring was
completed according to the plan. Monitoring on benzo pyrene, mercury, dioxin were entrusted to
qualified independent unit since the plate plant is not capable of such monitoring.
5.3 Green Urban Steel Plant
The company attaches great importance to energy conservation, environmental pro tection,
circular economy and the sustainable development of a green city steel factory. We will strengthen
the circular economy, adhere to the principle of "reduction, reuse and recycling" of the circular
economy, and manage to implement circular economy, such as clean production, green
procurement and recycling of waste in the whole life cycle of steel production and products and
services. Taking measures such as source reduction, process optimization and process control,
the consumption of raw materials is greatly reduced and the output rate of resources is increased,
so as to realize resource conservation and environmental friendliness of enterprises. We will
strengthen the fine management of suppliers and the procurement process, and resolutely carry
out green procurement and promote the construction of green procurement supply chain. We will
use independent innovation and technology integration to promote energy conservation, emission
reduction and comprehensive utilization of resources, to raise the le vel of enterprise clean
production and circular economy. Focus on energy conversion and recycling of resources of steel
plants, actively share technology and resources with the city, assist urban industrial development
and positively undertake social responsibility, aiming to build an “urban steel plant” with city and
industry integrative development and ecological harmony.
◎ Local Ecological Environment Construction
On the basis of promoting ecological environment construction in Benxi city, the company
strengthens the independent greening construction of the factory.
For main mine and minery, we need to promote mine ecolog ical restoration, including mine
slope stability and the green recovery, soil improvement in waste land, plant and microbial
remediation of soil with heave metal pollution, artificial restoration for surface water resources. So
far the green area reaches 11.636million square meters, with a green rate of 99.59%.
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
Fully strengthen the plant greening and beautification construction, conduct bare ground
treatment and vertical planting. The greening is reaches 2.455million square meters, with a
greening rate of 98.91%.
◎ Strengthen Disclosure of Enterprise Environmental Information
As per national, provincial and municipal major pollution source information disclosure policy
requirements, Bengang Steel Plate organized to conduct information statistics and then published
on Benxi Steel website. In 2018, 10 companies participated in information disclosure work, mainly
including iron mill, steel mill, coking plant, power plant, cold rolling plant, hot rolling plant, raw
material factory, energy general plant and other units.
◎ Resource Sharing and Recycling
In 2014, Benxi municipal government, Liaoning provincial environmental protection
department, Benxi Steel and Danfoss signed the "four -party framework agreement", agreeing to
carry out comprehensive cooperation in urban green heating by utilizing Benxi Steel’s waste heat
resources, to rationally adjust the distribution of heating network, and realize win -win cooperation
and harmonious development among cities, enterprises and the environment. By the end of 2018,
Benxi Steel had raised a total of 145.42 million RMB to carry out waste heat heating renovation. In
benxi urban area, the actual total heating area was 5.54 million square meters, among which the
waste heat heating increased from 2.3 million square meters to 3.57 million square meters, and
the boiler heating decreased from 2.52 million square meters to 1.97 million square meters. It can
reduce operating cost by nearly 10 million yuan per year; reduce coal consumption by 20,000
tons, CO2 emission by 50,000 tons, dust emission by 208 tons, SO2 emission by 26 tons and
NOX emission by 139 tons.
◎Assisting City Industry Development
The company actively integrates into the urban industrial development and supports the
development of strategic emerging industries in the city based on the characteristics of the
enterprise. In 2018, it achieved remarkable results in supporting local economic development.
（1）Support local economic development in purchasing area. For purchase of iron ore
powder, limestone, scrap steel, alloy, spare parts and other products procurement field, the
company opens gives priority to local enterprise when the quality are at the same level. For the
Benxi Steel’s bidding, municipal enterprises are open for registration to participate in the bidding.
The company reduced the requirement for S and P level local mining powder, and ac hieved a
long-term cooperative volume of 2.08 million tons in 2018.
（2）In the area of product trade, the company support local governments in attracting foreign
investment. It offers preferential steel supply for local enterprises; gives extra 50 yuan/ton discount
for local investment and investment enterprises on the basis of preferential ordering for the agreed
users; Bengang International Trade actively participates in the investment introduction organized
by Benxi city.
（3）Support the development of Qiaobei Iron and Steel Deep Processing Industrial Park.
Benxi Steel accelerates the construction of Northern Hengda Logistics Park, which is planned to
be completed in December 2019. At that time, a larger platform will be built to drive the
development of Qiaobei Industrial Park. Benxi Steel actively supports Pingshan District to carry
out deep processing of steel products to attract investment, introducing more enterprises to settle
in the industrial park.
（4）Support the development of Xihu Steel Scrap Industrial Park. On April 26, 2018, Benxi
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
Steel signed the “Steel Scrap Industry Cooperation Agreement" with Xihu District Government,
which resulted in the purchase of 800,000 tons of steel scrap in 2018 and a substantial increase in
industrial park bidding in 2019.
◎Financial and Tax Contribution
The company contributes to the society with its honest operation and excellent performance.
In 2018, the company paid state taxes and fees of about 515,752,400RMB.The company won the
reputation of “Benxi A Level Taxpayer “for years due to the excellent tax credit.
Tax Deduction and Exemption:
The company strictly complies with the laws and regulations of the state on taxation, and
makes reasonable use of relevant preferential policies. In 2018, the company enjoyed t he
following tax reduction and exemption:
1）It enjoys the policy of additional deductions for technology research and development
expenses. In 2018, the additional deductions for research and development expenses were 33.2
million yuan, and the additional deductions for income tax were 8.28 millio n yuan.
2）It enjoys the policy of investment exempts from income taxes for special equipment use
(environment protection, energy and water saving and product safety). In 2018, the income tax
exemption was 3.22 million RMB.
3）It enjoys government subsidies for special projects. In 2018, the government subsidies for
special projects reached 2.7993 million RMB.
Statistical Table of Tax Payment
Unit: Ten Thousand
RMB
Series 1
Note: The data of various taxes and duties submitted to the state include VAT and customs duties.
5.4 Green supply chain
Benxi Steel practices environment-oriented management and extends the concept of
low-carbon, environmentally friendliness and sustainability to all aspects of the supply chain such
as procurement of raw materials, auxiliary materials, equipment and spare parts. We formulate
different procurement strategies, advocate the concept of resource conservation, environmental
friendliness, and maximize the life cycle value of products; pass the green operation concept to
upstream and downstream enterprises, guide suppliers to be civilized and healthy and to carry out
clean production, and pursue coordinated development of economic, environmental and social
benefits to jointly create a green supply chain full of sunshine and sharing responsibility.
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
◎Green supplier management
Benxi Steel develops and implements supplier audit standards, focusing on suppliers'
sustainable development, safe and environmentally friendly occupational health management, and
green supply management. Through the establishment of supplier audit standards, enhance the
breadth and depth of supplier audits, make sure the audit is scientific and effective, improve the
management level of suppliers , and reduce procurement costs and risks. The main factors that
Benxi Steel considers to choose suppliers are: the overall scale of the enterprise, production and
operation situation, equipment capabilities, product quality control and environmental friendliness,
etc. Active suppliers focus on long-term cooperation and improvement of green environmental
protection capabilities. From 2013 to 2017, a survey was conducted on suppliers for all varieties in
the network. A total of 2347 suppliers from 31 categories were surveyed, and the supplier's
manufacturing capabilities and product quality control capabilities were reconfirmed. At the same
time, in accordance with the promotion standards, we actively explored new suppliers and
promoted the continuous optimization and improvement of the supplier structure. From 2018 to the
present, 900 new suppliers were introduced, and the number of qualified suppliers in the network
reached 2,760. Through the annual comprehensive assessment and evaluation, the dynamic flow
of suppliers was promoted. In 2018, 2,212 suppliers participated in the annual asses sment and
evaluation, and after comprehensive evaluation, there were 46 suppliers classified as unqualified
suppliers.
Based on the key materials for automobile panels approved by the company, 12 suppliers and
26 varieties were identified as key material suppliers, and a systematic process audit was
conducted, as a result,the operational capacity of key items and key suppliers' management
systems was effectively improved. The production type supplier of key material shall pass the
quality management system certification ISO9000, and it is recommended to pass the
environmental management system certification ISO14000 and the occupational health and safety
management system certification OHSAS18000. The key material suppliers involved in the
automotive industry's steels are recommended to pass the automotive industry quality
management system certification IATF16949.The system is not required for circulating suppliers.
For suppliers of key materials, the “Code of Conduct for Social Responsibility of Suppliers i n
the Purchasing Center of Benxi Steel Plate Co., Ltd.” is formulated to require suppliers to comply
with all applicable laws and regulations of the countries and regions in which they operate, and to
use this as a prerequisites for cooperation with Benxi Steel. Benxi Steel encourages suppliers to
adopt internationally recognized industry standards and industry best practices to continuously
improve CSR management. Benxi Steel incorporates CSR into the performance appraisal for
suppliers, including material certification, supplier certification and full lifecycle management of
selection, daily management, performance evaluation, and exit. For suppliers with good CSR
performance, Benxi Steel gives priority to providing business cooperation opportunities; for
suppliers with poor CSR performance, especially those who violate the CSR red line requirements,
Benxi Steel requires them to rectify within a time limit and restricts their business cooperation
opportunities until the partnership is canceled.
◎Actively promote "sunshine procurement"
Benxi Steel actively promotes “Sunshine procurement”, bidding and purchasing according to
law, promoting open procurement, and working with suppliers to create a clean, fair, just and open
supply chain environment. Benxi Steel's current procurement model is mainly the bidding
procurement mode. The bidding mode is the basic way for modern enterprises to implement
material sunshine procurement. It is an effective way to obtain the required resources in a larger
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
scope,the main means to achieve healthy competition and implement sunshine operation and an
important measure and firewall to prevent unfair transactions and avoid black -box operations.
There are two main types of bidding modes, one is open tendering and the other is invited
tendering.
In order to ensure the openness and transparency of the procurement process, it is required
to be open and transparent from the formation of the procurement plan, the organization of the
market research, the design of the procurement process, the implementation of the procurement
behavior, and the management of the procurement materials, that is, the procurement process
must be practical, open and transparent. Openness and transparency mean that the plan be open,
the process open, the results public, the process open, and the implementation transparent.
From the contract signing, transportation mode, inspection and entering storage, settlement
and payment, delivery in place, on-site use, service management, supplier access, supplier exit,
etc. of the purchased products, the processes and links are closely connected, the operation
efficient, and highly detailed and unified responsibility, functions, powers and obligations of all
aspects of the process must be realized.
In order to ensure the realization of “Sunshine procurement ”, Benxi Steel continuously
promotes the information sharing of the entire supply chain, and realizes the rapid transfer,
effective integration and system sharing of information from various departments such as
management departments, supervision departments, executive departments, production users,
field use and suppliers to ensure smooth flow of information throughout the procurement process.
5.5 Honest and ethical operation
In the business activities, the company consciously abides by professional ethics and integrity
standards, adheres to the law, be honest and trustworthy, standardizes operations, establishes a
credit system, and actively advocates the business philosophy of “honesty, mutual benefit and
win-win”, and regards the moral behavior of employees as an important part of corporate culture
construction, building a management system for ethical behavior. The tax level is always
maintained at level A, and the credit rating in multiple banks has always been 3A.
The company insists on deepening the construction of a clean and honest party, and adopts a
clean and ethical business operation to ensure sustainable development, and actively shoulders
the political responsibility of strictly administering the party, be strict about inner-party life, and
observes strict party discipline, strengthens inner-party supervision, deepens the work of
reforming the discipline inspection and supervision system, improves the working mechanism of
the stationed institutions, and improves the effectiveness of comprehensiv ely and strictly
administering the party. It carries out clean and honest missions, disciplinary review and
comprehensive supervision, creates a strong atmosphere of anti-corruption and observing strict
discipline, and strives to build an institutional mechanism that dares not to corrupt, not able to
corrupt, or want to corrupt, providing a firm political guarantee for the company to achieve
long-term development goals.
Results of the company's moral behavior in the past three years
No. Performance Index 2016 2017 2018
Customer contract
1 100 100 100
fulfilling rate
Fulfilling rate of group
2 100 100 100
labor contract
Purchasing plan 91.35% 92.45% 94.09%
3
fulfilling rate
4 Tax credit rating A A A
5 Bank credit rating 3A 3A 3A
Commodity import and
AEO advanced
6 export inspection - -
certification
level
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
VI. People-oriented
Benxi Steel adheres to the "people-oriented" concept, establishes the talent concept of
"respecting the sages and making the best of talents", always pays attention to the needs of all
stakeholders, provides employees with competitive compensation and benefits, creates training
and learning opportunities and career development space, and implements each heart-warming
project and employee activities to create a “fair and harmonious” professional environment, so that
employees and enterprises can grow together and develop together.
6.1 Employee profile
At the end of the reporting period, the company had 17,997 employees, and the ratio of male
to female employees was 8:1, which is suitable for the development of the steel industry. The
company has a young and dynamic workforce with a reasonable age structure. The employees
are mainly aged 50 years and below, accounting for 68% of the total.
The company has a high-quality staff team; the proportion of college degree or above is 50%;
the senior professional title accounts for 17% of technical personnel; the intermediate title
accounts 59%; the senior staff or above accounts for 84% of the operators; the proportion of
management is only 4%; the team is lean and efficient.
Post staff ratio(Unit :%)
Management Business
Technology
Operation
Figure 1 Post staff ratio
6.2 Learning and Training
The company relies on the Benxi Group training system to build an education and training
system mechanism and to establish a sound education and training syste m. According to the
long-term and short-term production and operation objectives and job requirements, the training
requirements are summarized and selected in a bottom-up manner, and an annual training plan
and a medium- and long-term training plan for the development strategy are formulated. The
training funds are approved according to 1.5% of the annual wages of the employees in the post
and paid to ensure that the training rate of all employees reaches 70%, and the annual training
plan implementation rate exceeds 85%.
The company adopts diversified education and training modes and methods, and builds a
comprehensive training base group with complete professional categories and infrastructure
facilities (see Figure 2).
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
Figure 2 Schematic diagram of the staff training base structure
职工培训基地结构示意图 Schematic diagram of the staff training base structure
辽宁冶金职业技术学院：Liaoning Metallurgical Vocational Technical College
培训基地：Training base
安全培训基地：Safety training base
技能鉴定站：Skill testing station
技能大师工作站：Skill Master Workstation:
综合性培训基地群 Comprehensive training base group
清华大学 Tsinghua University
东北大学 Northeastern University
大连交通大学 Dalian Jiaotong University
井冈山教育基地 Jinggangshan Education Base
The company continues to innovate the human resources development platform, opti mize the
education and training model and carrier, and form an independent training system suitable for the
company's development and advanced process technology requirements. Relying on Tsinghua
University, Northeastern University, Dalian Jiaotong University and Benxi Steel Party School, a
reserved senior management talent education and training system with business management
core curriculum as the main body and management practice combined with theoretical research is
formed. Since 2018, a total of 131 outstanding management and technical personnel have
completed half year of course study in three phases (see Figure 3).
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
6.3 Career Development
The company establishes professional development channels for the four major groups of
management, business, technology and operation, and forms a unique career development model
(see Figure 4). In response to the training of senior management personnel, the company revised
the "Administrative Measures for the Reserve Cadres of Benxi Steel Group Co., Ltd" and the
"Administrative Measures for the Selection and Appointment of Leading Cadres of Benxi Steel
Group Co., Ltd.", implemented the MBA reserve cadre off-job training, and established a pool of
reserve talents; for the training of reserve talents, the company for mulated the “Guiding Opinions
on the Career Planning Management of College Graduates in Benxi Steel Group Co., Ltd” to help
young talents accurately position their development direction, determine short -term development
goals, and design career development routes. The company implements the all posts placement
system every two years in major positions, and organizes open competition for core business and
technical positions such as senior management, sales and R&D throughout the company, and
organized six times of recruitment throughout the company in 2018, involving more than 80 key
positions.
集团总经理
集团副总经理
部门正职 首席专家
部门副职
高级业务师 首席工程师 技能专家
职能负责人
区域副职 主任业务师 主任工程师
首席操作
区域副职 专业业务师 专业工程师
责任业务师 责任工程师 高级操作
主要操作
一般操作
管理通道 业务通道 技术通道 操作通道
集团总经理 Group general manager 高级业务师 Senior business officer 首席专家 Chief expert 技能专家 Skill expert
集 团副 总经 理 Group deputy general 主任业务师 Chief business officer 首席工程师 Chief engineer 首席操作 Chief operation
manager
专 业 业 务 师 Prof essional business 主任工程师 Head engineer 高级操作 Advanced operation
部门正职 Departmental principal officer
专业工程师 Professional engineer 主要操作 Main operation
部门副职 Departmental deputy 责 任 业 务 师 Responsible business
officer 责任工程师 Responsible engineer 一般操作 General operation
职能负责人 Function leader
区域副职 Regional deputy
管理通道 Management channel 业务通道 Business channel 技术通道 Technology channel 操作通道 Operation channel
Figure 4. Staff Career Development Channel
38
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
6.4 Compensation and benefits
The company has established a sound performance management system, based on the
determined annual production and operation guidelines, policies and management objectives,
assessing the operational indicators of various functional departments and factories and mines
and the completion of work tasks, setting key performance evaluation indicators, and
implementing monthly assessments. It adheres to the guiding ideology of effectively motivating
employees to work, the combination of universal incentives and precise incentiv es, and provides
precise incentives for special work and outstanding contributions. A de-administrative broadband
compensation system was implemented, and compensation incentives were implemented
according to professional group (see Figures 5 and 6). It ad heres to the "effectiveness-oriented"
and implements the "employee's scale payment" policy, so that the employees can share the
dividends of labor efficiency improvement; it shall further strengthen the link between
compensation and performance, and realize the "increasing or reducing the income according to
performance" of employee income.
No T he 1st Grade T he 2nd Grade T he 3 rd Grade T he 4th Grade T he 5 th Grade T he 6 th Grade T he 7th Grade T he 8 th Grade T he 9 th Grade T he 10st Grade
There are 30 post levels set for post salary.
Each post level sets a broadband standard of ten grades assessed for one
post level
According to the characteristics of management, business, technology
and operation, there are 30 post levels set for the post salary.
Each post level sets a broadband standard of ten grades assessed for one
post level, and determines the corresponding post grade by evaluating the
post grade and promoting post grade based on awards.
Figure 5. Broadband compensation system of the company
Annu Com
Incentive-orie al Project Agreement
Personnel type nted Salary Bonus salar missi salary salary
on
y
Operation Skill type ▲ ▲
personnel
Junior and
intermediate Position ▲ ▲
management promotion type
technician
Profit sharing
Senior manager type ▲
Technical research
and development Result type ▲ ▲
personnel
Marketing Performance ▲ ▲
personnel type
Special talent Flexible ▲ ▲
Figure 6. Salary incentive types of the company
The company establishes and implements a multi-level insurance and welfare system to
provide employees with effective protection and enhance the company's cohesiveness and
centripetal force. In terms of statutory benefits, the company fulfills its responsibilities and
obligations in accordance with the law and pays all social insurance in full and on time, including
basic pension insurance, medical insurance, unemployment insurance, work injury insurance and
housing provident fund. In terms of corporate welfare, the company provides enterprise annuity
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
plans, health checkups and other projects and purchases commercial accident insurance for
employees. At the same time, in order to alleviate the housing pressure of young talents, the
company implements college graduates' housing allowances, housing subsidies, post-doctoral
apartments and other policies, so that employees " Living and working in peace." The company
provides employees with health care, health checkups, general screening and treatment for
female disease screening, so that employees can share the fruits of enterprise development. In
2018, the plate company organized a total of 2,849 employees to rehabilitate and used a total of
1.62 million yuan in recuperation funds. A survey of female diseases was conducted for 3,091
female workers.
6.5 Employee Care
The company exemplarily complies with the “Labor Law”, “Labor Contract Law”,
”Trade Union Law”, “Social Insurance Law” and other laws and regulations, respects the human
rights of employees, cares for employees, earnestly protects the interests of employees, and signs
and performs labor contracts with employees according to law. It earnestly implements the
all-employee labor contract system, collective contract system, and employee representative
assembly system, and establishes and improves the trade union organization, labor dispute
mediation organization, labor laws supervision organization, labor protection supervision and
inspection organization, and gives full play to the advantages of the sound and perfect system of
the workers' congress system, boosts equal consultation and collective contract work in -depth and
solidly to ensure the stability of the workforce and promote the co nstruction of a harmonious
enterprise. In 2018, the company organized a three-times workers' congress to implement
democratic management of employees, standardized the implementation of relevant procedures,
and ensure that matters involving the vital interests of employees were effectively resolved.
The company attaches great importance to the democratic management of enterprises, and
through various forms of democratic management, such as the Staff Representative Conference
and the Openness of Factory Affairs, smoothes the channels for democratic participation of
employees, and extensively solicits and repeatedly listens to opinions and suggestions of
employee representatives before the formulation and implementation of various systems involving
the vital interests of employees; relevant departments modify and improve the program to protect
employees' right to know, to participate, to express, and to supervise.
The company strengthens the care for employees, organizes face -to-face talks, holds
symposiums to understand their psychological needs and trends, and solves problems in their
work and life. At the same time, in order to enrich employees' amateur cultural life, it organizes
activities such as college sports games, speech contests, associations, outstan ding college
students' commendation and entry ceremony, helps to establish QQ group, WeChat group, etc., to
create a harmonious atmosphere, and make employees have stronger sense of belonging and
feelings of happiness (see Figures 7 and 8).
Figure 7 The company held a college sports meeting
5
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
Figure 8 The company holds outstanding college students commendation and entry ceremony
The company implements precise poverty alleviation, so that the employees in difficulties feel
the warmth of the party and the enterprise in a timely manner, accurately issued relief funds of
730,000 yuan allocated by the central government and the Provincial General Labor Union and the
company distributed bailout money of 130,000 yuan for the workers in difficulty.
The company actively carries out the employee mutual aid protection plan to reduce the
medical burden of employees. In 2018, employees handled mutual insurance, with an investment
of 2.83 million; 2,783 people received claims, and the amount of claims was about 2.87 mil lion
yuan.
The company actively pays attention to the mental health of employees, and publicizes
mental health knowledge through in-depth teamwork and psychological group training; it conducts
12 mental health lectures for grassroots units.
6.6 Public Benefit Support
The company attaches great importance to the social responsibility of the company, and fully
assumes the public responsibility of the corporate legal person, actively participating in public
welfare activities. The company plans systematically, clears key support areas, actively supports
public welfare undertakings to achieve the harmonious development of enterprises and society.
The grassroots units of the company have set up volunteer teams with 820 volunteers
registered at the Benxi Charity Federation. They actively participated in the plant greening
activities in their spare time, went to the city's nursing homes and welfare homes to carry out
voluntary labor, and carried out duty dedication day activity going to the municipal public parks to
collect garbage which have established a good social image for the company and also reflected
the excellent character of the enterprise workers in the new era.
The company has long been committed to public welfare support and always gives the
achievements of enterprise development back to the society. In the past three years, an
accumulated investment of 1,846,200 yuan was used to help and rescue, and an accumulated
investment of 869,000 yuan for Autumn Assistantship for Students. The company was awarded
the “Outstanding Contribution Award” by the China Charity Federation and was awarded the
“China Charity Outstanding Contribution Award Unit” by the China Charity Federation for two
consecutive sessions. The Benxi Steel Residents Task Force has directly inve sted a total of more
than 3 million yuan in fixed support and coordinated to introduce various poverty alleviation
funds of 8.58 million yuan for industrial poverty alleviation and infrastructure construction. The
Shihuzi Village, which was assisted, achieved poverty alleviation in advance one year ahead of
schedule. The company has been rated as an advanced unit for fixed poverty alleviation in
Liaoning Province for many years.
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| Bengang Steel Plates Co., Ltd. Sustainable Development Report of 2018
VII. Annex
Questions and Answers of Shareholders
Q: Recently, Benxi Steel Group announced that it has been included as the unit reforming
toward mixed system of Liaoning Province. May I ask the management: What is the benefit for the
listed company Benxi Steel?
A: Benxi Steel Group Co., Ltd. actively responds to the relevant requirements and
arrangements of the CPC Central Committee, the State Council, the Liaoning Provincial Party
Committee and the provincial government on deepening the reform of state-owned enterprises,
and actively promotes the reform of mixed ownership of state-owned enterprises. We promote the
transformation of the operating mechanism of Benxi Steel Plate and Holding Companies, improve
capital allocation and operation efficiency, perfect the modern enterprise system and corporate
governance structure, and realize the complementarily, mutual promotion and common
development of various ownership capital.
Q: Why does the company's parent company increase its shareholding in the company?
A: Based on the optimistic view on China's economic prospects and confidence in the future
development of the company, the controlling shareholder of the company will increase its
shareholding in the company with its own funds not exceeding RMB 300 million. The Company
continues to pay attention to the completion of the shareholding increase plan and performs
information disclosure obligations timely according to relevant regulations.
Q: What plans does the company have for future market value management?
A: The company believes that the core of market value management is to strive to achieve
improved business performance. Companies that can achieve steady improvement in business
performance can be recognized by the market for a long time. At the same time, good corporate
governance and standardized operations are also important condit ions for realizing market value
increase.
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