Bengang Steel Plates Co., Ltd. The 1st Quarterly Report 2009 (Full Text)
1
Bengang Steel Plates Co., Ltd.
The 1st Quarterly Report 2009 (Full Text)
§1 Important Declaration
1.1 The Board of Directors and the directors of the Company guarantee that there are no significant omissions,
fictitious or misleading statements carried in the Report and we will accept individual and joint responsibilities for
the truthfulness, accuracy and completeness of the Report.
1.2 The financial statements carried in this report are not audited.
1.3 Chairman of the Board – Mr. Yu Tiancheng, Chief Financial Officer – Mr. Kang Wei, and Head of Accounting
Dept. – Mr. Zuo Zhanguo hereby declare: the authenticity and integrality of the report are guaranteed.
This report is prepared both in English and Chinese. When there is any conflict in understanding, the
Chinese
version shall prevail.
§2 Company Profile
2.1 Financial highlights
In RMB Yuan
Ended this report
term
Ended previous
year Changed by (%)
Gross Assets 33,853,393,595.97 32,722,333,254.16 3.46%
Owners’ Equity Attributable to the Parent
Company 15,870,468,120.59 15,826,633,584.69 0.28%
Share capital 3,136,000,000.00 3,136,000,000.00
Net asset per share attributable to the
owners of the parent company 5.0607 5.0468 0.28%
This report term Same period last
year Changed by (%)
Turnover 8,449,109,927.05 8,965,777,446.38 -5.76%
Net profit attributable to the owners of
parent company 43,834,535.90 402,286,898.67 -89.10%
Cash flow generated by business operation,
net 2,091,911,058.43 336,602,839.79 521.48%
Net Cash flow per share generated by
business operation 0.6671 0.1073 521.71%
Basic gains per share 0.0140 0.1283 -89.09%
Diluted gains per share 0.0140 0.1283 -89.09%
Net earnings / asset 0.28% 2.35% -2.07%
Net earnings / capital ratio after deducting
of non-recurring gain/loss 0.27% 2.33% -2.06%
Non-recurring gain and loss items Amount of the period from the beginning of
year to the end of report term
Gain/loss from debt reorganization 1,132,607.85
Other non-business income and expenditures other than the above 808,871.98
Influenced amount of income tax -485,369.96
Total 1,456,109.87
Statements on non-recurring gain/loss items:
Non-recurring gains of the term were mainly the debt reorganizing gains.Bengang Steel Plates Co., Ltd. The
1st Quarterly Report 2009 (Full Text)
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2.2 Total of shareholders and the top 10 holders of unconditional shares
in Shares
Total shareholders at the end of the report period
(accounts) 73,806
Top ten holders of the shares without subscription limitation
Full name of shareholder Amount of unconditional shares held at
the end of report term Categories
Benxi Steel (Group) Ltd. 56,800,000 RMB common shares
DREYFUS PIFI-DREYFUS PREMIER
GREATER CHINA 44,875,855 Foreign shares placed in domestic
exchange
GOVERNMENT OF SINGAPORE INV. CORP.-
A/C "C" 33,939,158 Foreign shares placed in domestic
exchange
GSIC A/C MONETARY AUTHORITY OF
SINGAPORE 14,345,705 Foreign shares placed in domestic
exchange
China Construction Bank – Shangtou Morgan
China Advantage Securities Investment Fund 11,676,600 RMB common shares
APS CHINA ALPHA FUND 4,616,701 Foreign shares placed in domestic
exchange
BOCHK INVESTMENT FUNDS-BOCHK
CHINA GOLDEN DRAGON FUND 4,499,952 Foreign shares placed in domestic
exchange
China Everbright Bank Ltd. – Guotou Ruiying
Stock Investment Fund 4,364,717 Foreign shares placed in domestic
exchange
DWS INVEST-DWS INVEST CHINESE
EQUITIES 4,280,498 Foreign shares placed in domestic
exchange
RENAISSANCE CHINA PLUS FUND 3,760,556 Foreign shares placed in domestic
exchange
§3 Significant Events
3.1 Details and causations of major change in major accounting subjects and financial indices
√ applicable □ not applicable
● In the consolidated financial statements, main items which changed for over 30% comparing with the end
of 2008 and causations
I. Balance Sheet Items Rate of change Cause of change
Monetary capital 78.08% Increasing of financing in the term
Notes payable 71.18% Increasing of note financing, the costs are
lowered
Tax payable 112.41% Transforming of VAT
● In the consolidated financial statements, main items which changed for over 30% comparing between Jan
and Mar 2008 and
causations
II. Income Statement Items Rate of change Cause of change
Business tax and surcharge -80.91% Transforming of VAT
Sales expense -59.38% Decreasing of export, tariffs, and freight
Non-business income -51.94% Decreasing of gains from debt
reorganizing in the report term
3.2 Progress of significant events, their influence, countermeasures, and analysis
□applicable √ not applicableBengang Steel Plates Co., Ltd. The 1st Quarterly Report 2009 (Full Text)
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3.3 Fulfilling of commitment issues made by the Company, shareholder, or substantial controller
√ applicable □ not applicable
Commitments Content of Commitments Status of fulfilling
Commitment in share
equity relocation
(1) Since the date when the right of trading being granted, the controlling shareholder
shall not put the shares it holds in the market within at least 24 months. While shall
not sell the shares more than 5% of the total shares held between 24 months to 36
months.
(2) The Company has issued new A shares privately to Bengang Group to purchase its
steel & iron assets. Bengang Group committed not to put the newly placed shares in
the market or sell to others in 36 months since the date when the share registration is
done. (Except for transferring to strategic investors by ways approved by the national
policies, however the undertaker should takeover the commitment made by Bengang
Group.)
(3) From completion day of this acquisition up to the end of 2010, Bengang Group
will hold not lower than 65% of the Company’s shares (Except for transferring to
strategic investors by ways approved by the national policies, however the undertaker
should takeover the commitment made by Bengang Group.)
(4) When Bengang disposes or transfers the Company’s shares before 2010, the
transaction price shall not be lower than the net asset per share provided by the latest
auditing report. Bengang Group committed to put the gains from transferring or
disposing of the shares to the Company if the shares were transferred or disposed with
violating of the above commitments.
(5) Bengang Group promises to compensate other shareholders’ losses when above
commitments are not fulfilled or not completely fulfilled.
The commitments
are under processing
at present and no
breaching of
commitment has
occurred.
Commitment of not to sell
the shares
The first releasing of conditional shares was 56800000 shares in 2008. Bengang
Group promises not to put these shares into circulation in six months since the day of
releasing (April 29, 2008).
Expired
Commitment made in
acquisition report or
equity alternation report
None None
Commitment made in
major asset restructuring None None
Commitment made at
issuing None None
Other commitment
(including supplementary
commitment)
None None
3.4 Estimated accumulative profit from the year beginning to the end of the next report period may be of
deficits; or in comparison with the same period of the previous year, give the warning of great change and
the notice to the reasons.
□applicable √ not applicable
3.5 Major events needs to be explained
3.5.1 Investment in securities
□applicable √ not applicable
3.5.2 Reception of investigations, communications, or interviews
No such investigation, communication or visiting happened in the report term.Bengang Steel Plates Co., Ltd.
The 1st Quarterly Report 2009 (Full Text)
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3.5.3 Statement on other significant issues
□applicable √ not applicable
§4 Attachments
4.1 Balance Sheet
Prepared by: Bengang Steel Plates Co., Ltd. March 31 2009 RMB Yuan
Items ConBsaollaindcaete adt the Penadre onft tceormmp any CBoalnasnocleid aatt ethde begPinarneinntg coofm ypeaanr y
Current asset:
Monetary capital 3,954,770,058.67 3,895,987,891.14 2,220,835,995.51 2,209,824,428.24
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 819,214,332.63 794,020,106.99 849,900,747.04 837,453,565.97
Account receivable 509,408,309.49 520,470,571.99 507,305,392.11 518,376,780.61
Prepayment 1,735,094,378.81 1,629,039,694.08 1,572,141,296.94 1,466,086,612.21
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable 7,255,724.59 7,255,724.59 7,255,724.59 7,255,724.59
Dividend receivable
Other account receivable 115,245,003.99 215,988,206.01 111,144,143.81 185,904,884.86
Repurchasing of financial assets
Inventories 6,774,511,252.89 6,629,575,585.07 7,859,743,442.03 7,586,045,815.48
Non-current asset due in 1 year
Other current asset 191,775,764.22 182,211,823.73 191,775,764.22 182,211,823.73
Total of current asset 14,107,274,825.29 13,874,549,603.60 13,320,102,506.25 12,993,159,635.69
Non-current assets
Loans and payment on other’s behalf disbursed
Disposable financial asset
Expired investment in possess
Long-term receivable
Long-term share equity investment 62,100,529.68 56,100,529.68
Investment real estate
Fixed assets 14,685,207,019.59 14,682,805,179.35 15,114,030,741.42 15,111,510,961.84
Construction in process 4,354,453,399.94 4,354,453,399.94 3,871,536,579.58 3,871,536,579.58
Engineering goods 300,697,319.05 300,697,319.05 10,902,394.81 10,902,394.81
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets
R&D expense
Goodwill
Long-term amortizable expenses
Differed income tax asset 405,761,032.10 403,792,692.38 405,761,032.10 403,792,692.38
Other non-current asset
Total of non-current assets 19,746,118,770.68 19,803,849,120.40 19,402,230,747.91 19,453,843,158.29
Total of assets 33,853,393,595.97 33,678,398,724.00 32,722,333,254.16 32,447,002,793.98
Current liabilities
Short-term loans 3,922,380,000.00 3,922,380,000.00 2,887,352,200.00 2,887,352,200.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
Trade off financial liabilities
Notes payable 3,157,736,098.36 3,157,736,098.36 1,844,612,512.13 1,844,612,512.13
Account payable 5,308,957,492.95 5,126,934,763.56 6,894,797,428.30 6,812,978,403.70
Prepayment received 2,441,947,558.41 2,534,174,412.28 2,018,405,589.55 1,857,162,119.04
Selling of repurchased financial assetsBengang Steel Plates Co., Ltd. The 1st Quarterly Report 2009 (Full
Text)
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Fees and commissions receivable
Employees’ wage payable 301,413,351.46 301,413,351.46 321,360,373.18 321,360,373.18
Tax payable 31,242,828.35 27,170,995.02 -251,596,127.71 -254,028,564.17
Interest payable
Dividend payable
Other account payable 687,087,960.65 615,448,209.00 698,210,191.67 674,126,990.12
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year 101,613,443.59 101,613,443.59 448,753,264.40 448,753,264.40
Other current liability
Total of current liability 15,952,378,733.77 15,786,871,273.27 14,861,895,431.52 14,592,317,298.40
Non-current liabilities
Long-term borrowings 2,015,235,262.86 2,015,235,262.86 2,018,558,759.20 2,018,558,759.20
Bond payable
Long-term payable
Special payable 8,566,000.00 8,566,000.00 8,500,000.00 8,500,000.00
Expected liabilities
Differed income tax liability
Other non-recurring liabilities 6,745,478.75 6,745,478.75 6,745,478.75 6,745,478.75
Total of non-current liabilities 2,030,546,741.61 2,030,546,741.61 2,033,804,237.95 2,033,804,237.95
Total of liability 17,982,925,475.38 17,817,418,014.88 16,895,699,669.47 16,626,121,536.35
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 3,136,000,000.00 3,136,000,000.00 3,136,000,000.00 3,136,000,000.00
Capital reserves 8,736,261,134.76 8,736,261,134.76 8,736,261,134.76 8,736,261,134.76
Less: Shares in stock
Surplus reserves 921,277,509.22 921,277,509.22 921,277,509.22 921,277,509.22
Common risk provision
Retained profit 3,076,929,476.61 3,067,442,065.14 3,033,094,940.71 3,027,342,613.65
Different of foreign currency translation
Total of owner’s equity belong to the parent company 15,870,468,120.59 15,860,980,709.12 15,826,633,584.69
15,820,881,257.63
Minor shareholders’ equity
Total of owners’ equity 15,870,468,120.59 15,860,980,709.12 15,826,633,584.69 15,820,881,257.63
Total of liabilities and owners’ equity 33,853,393,595.97 33,678,398,724.00 32,722,333,254.16
32,447,002,793.98Bengang Steel Plates Co., Ltd. The 1st Quarterly Report 2009 (Full Text)
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4.2 Income Statement
Prepared by: Bengang Steel Plates Co., Ltd. Jan-Mar 2009 RMB Yuan
Items CAonmsooluindta toefd the CPaurrerennt tc Tomerpma ny CAomnsooulindta otef dth e PPraerveinotu cs
oTmerpman y
I. Total revenue 8,449,109,927.05 8,102,956,494.72 8,965,777,446.38 8,166,353,159.05
Incl. Business income 8,449,109,927.05 8,102,956,494.72 8,965,777,446.38 8,166,353,159.05
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 8,392,949,524.81 8,051,266,545.71 8,433,729,905.69 7,649,291,500.45
Incl. Business cost 7,666,391,529.87 7,342,615,698.32 7,481,010,726.62 6,717,916,903.04
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves provided
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 9,609,595.16 9,172,466.87 50,345,271.63 50,071,296.40
Sales expense 68,046,065.01 54,326,185.52 167,515,184.50 150,987,588.97
Administrative expense 597,312,664.19 593,532,997.35 665,357,484.00 660,736,185.50
Financial expenses 51,589,670.58 51,619,197.65 69,501,238.94 69,579,526.54
Asset impairment loss
Plus: Gains from change of fair value (“-“ for loss)
Investment gain (“-“ for loss)
Incl. Investment gains from affiliates
Gains from currency exchange (“-“ for loss)
III. Operational profit (“-“ for loss) 56,160,402.24 51,689,949.01 532,047,540.69 517,061,658.60
Plus: Non business income 1,954,229.83 1,775,986.31 4,066,051.74 3,386,051.74
Less: Non-business expenses 12,750.00 80,069.00 80,069.00
Incl. Loss from disposal of non-current assets
IV. Gross profit (“-“ for loss) 58,101,882.07 53,465,935.32 536,033,523.43 520,367,641.34
Less: Income tax expenses 14,267,346.17 13,366,483.83 133,746,624.76 130,091,910.34
V. Net profit (“-“ for net loss) 43,834,535.90 40,099,451.49 402,286,898.67 390,275,731.00
Net profit attributable to the owners of parent company 43,834,535.90 40,099,451.49 402,286,898.67
390,275,731.00
Minor shareholders’ equity
VI. Earnings per share:
(I) Basic earnings per share 0.0140 0.0128 0.1283 0.1245
(II) Diluted earnings per share 0.0140 0.0128 0.1283 0.1245Bengang Steel Plates Co., Ltd. The 1st Quarterly
Report 2009 (Full Text)
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4.3 Cash Flow Statement
Prepared by: Bengang Steel Plates Co., Ltd. Jan-Mar 2009 RMB Yuan
Amount of the Current Term Amount of the Previous Term
Items
Consolidated Parent company Consolidated Parent company
I. Net cash flow from business operation
Cash received from sales of products and providing
of services 7,015,736,389.00 6,938,422,529.68 7,749,721,204.48 7,742,791,071.56
Net increase of customer deposits and capital kept
for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from other
financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of trade financial asset disposal
Cash received as interest, processing fee, and
commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 50,000.00 680,000.00
Other cash received from business operation 31,092,843.90 30,690,733.42 40,560,374.96 32,656,176.45
Sub-total of cash inflow from business activities 7,046,879,232.90 6,969,113,263.10 7,790,961,579.44
7,775,447,248.01
Cash paid for purchasing of merchandise and
services 4,331,564,791.33 4,311,564,791.33 6,308,188,120.04 6,308,188,120.04
Net increase of client trade and advance
Net increase of savings in central bank and brother
company
Cash paid for original contract claim
Cash paid for interest, processing fee and
commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 418,821,108.38 417,325,632.38 432,257,444.91 430,798,231.91
Taxes paid 176,021,430.09 168,758,595.45 662,285,608.29 651,175,332.38
Other cash paid for business activities 28,560,844.67 21,323,785.77 51,627,566.41 43,221,170.69
Sub-total of cash outflow from business
activities 4,954,968,174.47 4,918,972,804.93 7,454,358,739.65 7,433,382,855.02
Cash flow generated by business operation,
net 2,091,911,058.43 2,050,140,458.17 336,602,839.79 342,064,392.99
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains
Net cash retrieved from disposal of fixed assets,
intangible assets, and other long-term assets
Net cash received from disposal of subsidiaries or
other operational units
Other investment-related cash received
Sub-total of cash inflow due to investment
activitiesBengang Steel Plates Co., Ltd. The 1st Quarterly Report 2009 (Full Text)
8
Cash paid for construction of fixed assets,
intangible assets and other long-term assets 1,028,741,266.47 1,028,741,266.47 1,535,758,407.92
1,535,758,407.92
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries and other
operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment
activities 1,028,741,266.47 1,028,741,266.47 1,535,758,407.92 1,535,758,407.92
Net cash flow generated by investment -1,028,741,266.47 -1,028,741,266.47 -1,535,758,407.92 -
1,535,758,407.92
III. Cash flow generated by financing
Cash received as investment
Incl. Cash received as investment from minor
shareholders
Cash received as loans 3,101,061,486.48 3,101,061,486.48 1,383,307,200.00 1,383,307,200.00
Cash received from bond placing
Other financing-related cash received
Subtotal of cash inflow from financing activities 3,101,061,486.48 3,101,061,486.48 1,383,307,200.00
1,383,307,200.00
Cash to repay debts 2,345,619,548.01 2,345,619,548.01 1,024,243,080.00 1,024,243,080.00
Cash paid as dividend, profit, or interests 90,509,698.14 90,509,698.14 66,113,733.95 66,113,733.95
Incl. Dividend and profit paid by subsidiaries to
minor shareholders
Other cash paid for financing activities
Subtotal of cash outflow due to financing
activities 2,436,129,246.15 2,436,129,246.15 1,090,356,813.95 1,090,356,813.95
Net cash flow generated by financing 664,932,240.33 664,932,240.33 292,950,386.05 292,950,386.05
IV. Influence of exchange rate alternation on cash and
cash equivalents -167,969.13 -167,969.13 -482,617.16 -482,617.16
V. Net increase of cash and cash equivalents 1,727,934,063.16 1,686,163,462.90 -906,687,799.24 -
901,226,246.04
Plus: Balance of cash and cash equivalents at the
beginning of term 1,851,732,015.60 1,840,720,448.33 2,242,866,884.97 2,232,308,962.38
VI. Balance of cash and cash equivalents at the end of
term 3,579,666,078.76 3,526,883,911.23 1,336,179,085.73 1,331,082,716.34
4.4 Auditors’ Report
Auditor’s opinion: not audited.
