Summary of Semi-Annual Report 2020 of Bengang Steel Plates Co., Ltd.
Stock Code: 000761, 200761 Abbreviation: Bengang Bancai, Bengangban B Announcement No. : 2020-055
Summary of Semi-Annual Report 2020 of Bengang Steel
Plates Co., Ltd.
I. Important Notice
This Semi-Annual Report Summary is taken from the full text of the Semi-Annual Report. Investors are advised to
carefully read the full text of the Semi-Annual Report published on the media designated by China Securities
Regulatory Commission in order to fully understand the Company’s operation results, financial position and future
development plan.
Other directors attending the Meeting for Semi-Annual Report deliberation except for the following
Name of director absent Title for absent director Reasons for absence Attorney
Non-standard auditor’s opinion
□ Applicable √Not applicable
Plans for profit distribution on ordinary shares or conversion of capital reserves into share capital proposed to the Board
during the reporting period
□Applicable √Not applicable
The Company plans not to distribute cash dividend or bonus shares, and not to convert capital reserve into share capital.
Plans for profit distribution on preference shares for the reporting period approved by the Board
□ Applicable √ Not applicable
II. Company Profile and Main Financial Index
1. Company profile
Bengang Bancai, Bengangban
Stock abbreviation Stock Code 000761、200761
B
Stock exchange for listing Shenzhen Stock Exchange
Contact person and manner Board secretary Securities affairs Representative
Name Gao Desheng Chen Liwen
No.16, Renmin Road, Pingshan District, No.16, Renmin Road, Pingshan District,
Address
Benxi City, Liaoning Province Benxi City, Liaoning Province
Tel 024-47827003 024-47828980
Email bgbcdm@163.com bgbcclw@126.com
2. Main Accounting Data and Financial Index
Retrospective adjustment to or restatement of the accounting data for prior years by the Company due to change of
accounting policies and correction of accounting errors
□ Yes √ No
Unit: yuan
Increase or decrease in this
Same period in previous
This reporting period reporting period over the
year
previous year
1
Summary of Semi-Annual Report 2020 of Bengang Steel Plates Co., Ltd.
Operating income 22,184,537,260.05 24,102,595,167.14 -7.96%
Net profit attributable to the shareholders
254,644,204.33 453,209,615.76 -43.81%
of the listed company
Net profit attributable to the shareholders
of listed company after deducting 239,885,472.54 481,928,450.94 -50.22%
non-recurring gain/loss
Net cash flows generated by operating
-151,475,707.08 984,787,005.67 -115.38%
activities
Basic earnings per share 0.07 0.12 -41.67%
Diluted earnings per share 0.07 0.12 -41.67%
ROE 1.30% 2.35% -1.05%
Increase or decrease at the
At the end of this reporting At the end of previous
end of this reporting period
period reporting period
over the previous year
Total assets 62,710,402,910.64 60,731,425,193.90 3.26%
Net assets attributable to shareholders of
19,764,576,963.53 19,487,665,261.17 1.42%
the listed company
3. Number of shareholders and shareholding
Unit: Share
The total number of
Total number of common preferred shareholders
shareholders at the end of the 54,074 voting rights restored at the 0
reporting period end of the reporting period (if
any)
Shareholding of shareholders holding more than 5% or top 10 shareholders
Number of Number of pledged or frozen
Name of the Nature of Holding shares
shares held at Restricted shares held
shareholder shareholder Percentage
period-end Status Number
Benxi Steel & Pledged 712,545,000
State-owned
Iron (Group) 62.11% 2,407,002,394 0
legal person Frozen 102,100,000
Co., Ltd.
CCB Principal
Asset
Management –
ICBC – CR
Trust – CR Others 4.77% 184,842,883
Trust Xing
Sheng No. 5
Collective Fund
Trust Plan
Bei Xin Rui
Feng Fund –
China
Merchants Bank
– Bei Xin Rui
Others 4.77% 184,842,883
Feng Fund Feng
Qing No. 229
Asset
Management
Plan
China Life AMP
Fund– ICBC – Others 4.77% 184,842,883
China Life AMP
2
Summary of Semi-Annual Report 2020 of Bengang Steel Plates Co., Ltd.
– Hua Xin Trust
Targeted
Additional
Shares Issuance
No. 10 Asset
Management
Plan
Liaoning
Provincial
State-owned
Transportation 4.74% 183,785,283
legal person
Investment
Group Co., Ltd.
Domestic
Fang Lei 0.36% 14,126,600
natural person
Domestic
Fang Huaiyue 0.24% 9,205,501
natural person
Domestic
Zhang Peng 0.21% 8,287,900
natural person
VANGUARD
EMERGING
Overseas legal
MARKETS 0.21% 8,157,311
person
STOCK INDEX
FUND
Domestic
Chen jinhong 0.18% 7,120,375
natural person
Notes to relationship or ‘action in It is unknown to the Company whether there is any related connection or ‘Action in Concert’ as
concert’ among the top 10 described by Rules of Information Disclosing Regarding Changing of Shareholding Status of
shareholders. Listed Companies existing among the above shareholders.
Benxi Steel & Iron (Group) Co., Ltd. holds 2,168,022,394 shares of the Company’s stock
through ordinary account and holds 239,000,000 shares of the Company’s stock through credit
Shareholders among the top 10
security account totaling 2,407,002,394 shares. Fang Lei holds 14,126,600 shares of the
participating in securities margin
Company’s stock through credit security account. Fang Huaiyue holds 9,205,501 shares of the
trading (if any)
Company’s stock through credit security account. Zhang Peng holds 8,287,900 through credit
security account.
4. Changes of Controlling Shareholders and Substantial Controller
Change of holding shareholder
□ Applicable √ Not applicable
There was no change of holding shareholder in the reporting period.
Change of substantial controller
□ Applicable √ Not applicable
There was no change of substantial controller in the reporting period.
5. Total preferred shareholders of the Company and shares held by top ten shareholders
□ Applicable √ Not applicable
There was no Preferred Shares during the reporting period.
6. Information about the corporate bonds
Whether there exists any un-matured corporate bonds public issued and listed on the Stock Exchange or any matured
corporate bonds which the listed company failed to pay in full at the approval date of the Semi-Annual Report
No
3
Summary of Semi-Annual Report 2020 of Bengang Steel Plates Co., Ltd.
III. Management Discussion and Analysis
1. General
Whether the Company needs to comply with the disclosure requirements for special industry
No
In the first half of 2020, the company's overall performance was generally outstanding, production and management had
a new improvement, and the reform tasks were solidly promoted. The main indicators achieved steady growth,
including: 5.11 million tons of pig iron, an increase of 352.8 thousand tons, an increase of 7.41%; crude steel of 5.13
million tons, an increase of 259.8 thousand tons, an increase of 5.33%; hot rolled sheet of 5.87 million tons, a decrease
of 232.1 thousand tons, a decrease of 3.8%; cold rolled sheet of 2.78 million tons, a decrease of 120.1 thousand tons, a
decrease of 4.14%; special steel of 0.36 million tons, an increase of 130 thousand tons, an increase of 57.62%.
During the reporting period, the company took "Overall Every Control and Clear" as the starting point, carefully
organized special research, and took multiple measures to reduce costs. The output of some varieties and the records of
daily and monthly production were continuously refreshed. A series of indicators have reached the best level in history.
The quality of development has been significantly improved. Through the establishment of an all-round benchmarking
management system, the coke ratio of plates into the furnace was 381kg in the first half of the year, which is the best
level in history. The No. 7 caster of the plate steelmaking plant has realized the online narrowing function and the online
width adjustment of the chamfering mold, reaching the domestic advanced level. The 2# pickling mill and silicon steel
pickling mill set the best operating record in history. The plate scrap mill matched the material type reasonably, and the
number of straight batching hoppers created the highest records in a single day and a single month, respectively.
2. Issues related to the financial report
(1) Changes in the accounting policy, accounting estimation and measurement methods
1. Change of major accounting policy during the current reporting period
Implementation of the "Accounting Standards for Business Enterprises No. 14 - Revenue" (revised in 2017) (hereinafter
referred to as the "New Revenue Standards")
The Ministry of Finance revised the "Accounting Standards for Business Enterprises No. 14 - Revenue" in 2017. The revised
standard stipulates that the initial implementation of the standard should adjust the amount of retained earnings and other
related items in the financial statements at the beginning of the year based on the cumulative impact, and no adjustments
should be made to comparable period information.
The company implements the new revenue standard from January 1, 2020. According to the standard, the company only
adjusts the retained earnings at the beginning of 2020 and the amount of other related items in the financial statements for the
cumulative impact of contracts that have not been completed on the date of first implementation, and the comparative
financial statements do not adjust. The major impact of the implementation of the regulation are as follows:
4
Summary of Semi-Annual Report 2020 of Bengang Steel Plates Co., Ltd.
January 1, 2020
Change of accounting policy
Affected items Consolidated Financial Parent company
content and reason
statement financial statement
Reclassify advance from customers Advance from customers -4,429,821,526.79 -5,597,707,687.22
to contract liabilities. Contract liabilities 4,429,821,526.79 5,597,707,687.22
Compared with the previous revenue standards, the impact of the implementation of the new revenue standards on the
relevant items for the period from January to June in 2020 is as follows:
June 30, 2020
Affected items Parent company financial
Consolidated Financial statement
statement
Contract liabilities 4,658,022,515.99 5,736,618,018.47
Advance from customers -4,658,022,515.99 -5,736,618,018.47
There is no impact to the items in the comprehensive income statement.
2. Change of accounting estimation
(1) The company’s principle for determining the applicable point of time for changes in accounting estimates: According to
Article 19 of the "Accounting Standards for Business Enterprises No. 4 - Fixed Assets", the enterprise should review the
useful life, estimated net residual value and depreciation method of fixed assets at least at the end of each year. If the
estimated useful life is different from the original estimate, the useful life of the fixed asset shall be adjusted.
(2) Major change of accounting estimate during the current reporting period
Change of accounting estimation Date of
Approval procedure Affected items and amount
content and reason application
Content: The company adjusted On January 31, 2020, the
the useful life of some of the eighth meeting of the Accumulative depreciation:
fixed assets since January 1, company's eighth board of January 1, RMB -206,452,050.12;
2020. directors reviewed and 2020 Operating cost : RMB
Reason: At the end of 2019, the approved the "Proposal on -206,452,050.12.
company evaluated the actual Adjusting the Useful Life of
5
Summary of Semi-Annual Report 2020 of Bengang Steel Plates Co., Ltd.
Change of accounting estimation Date of
Approval procedure Affected items and amount
content and reason application
condition and depreciation period Certain Fixed Assets"
of fixed assets, and believed that
the company’s production
equipment had a relatively high
level of equipment and technical
content, and maintained good
conditions. The company’s
cumulative investment in
equipment maintenance costs
from 2010 to 2019 was RMB
11.959 billion. To make the
depreciation period of fixed
assets closer to the actual service
life, it is necessary to adjust the
useful life of some fixed assets.
(2) Illustrations of retrospective restatement due to correction of significant accounting errors in the
reporting period
□ Applicable √ Not applicable
No major accounting errors within the reporting period that needs retrospective restatement for the Company.
(3) Illustrations of changes of the consolidation scope as compared with the financial report of previous
year
□ Applicable √ Not applicable
There was no change of the consolidation scope during the reporting period.
6
