Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Bengang Steel Plates Co., Ltd.
2022 Semi-annual Financial Report
(unaudited)
August, 2022
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Table of Contents
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION............................................................ 1-2
COMPANY’S STATEMENT OF FINANCIAL POSITION ................................................................ 3-4
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME .................................................... 5-6
COMPANY’S STATEMENT OF COMPREHENSIVE INCOME............................................................ 7
CONSOLIDATED STATEMENT OF CASH FLOWS.......................................................................... 8
COMPANY’S STATEMENT OF CASH FLOWS .............................................................................. 9
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY..................................10-12
COMPANY’S STATEMENT OF CHANGES IN OWNERS’ EQUITY................................................13-14
NOTES OF FINANCIAL STATEMENTS ............................................................................... 15-132
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2022
(Expressed in Renminbi unless otherwise indicated)
(English Translation for Reference Only)
Assets Notes 5 30 Jun, 2022 1 Jan, 2022
Current assets
Cash at bank and on hand (1) 4,805,370,697.71 8,831,095,737.85
Settlement provisions
Capital lent
Financial assets held for trading
Derivative financial assets
Notes receivable (2) 141,318,446.72 1,540,482,182.07
Accounts receivable (3) 307,887,350.08 256,850,782.71
Accounts receivable financing (4) 254,184,970.37 1,530,735,647.38
Prepayments (5) 1,950,905,089.18 994,370,345.64
Premium receivable
Reinsurance accounts receivable
Receivable deposit for reinsurance contract
Other receivables (6) 186,993,663.02 165,937,280.41
Redemptory financial assets for sale
Inventories (7) 8,740,534,055.47 10,190,166,138.98
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets (8) 240,668,471.95 754,948,193.56
Total current assets 16,627,862,744.50 24,264,586,308.60
Non-current assets
Loan and advances issued
Debt Investments
Other debt investments
Long-term receivables
Long-term equity investments (9) 3,067,239.29 2,981,784.07
Other equity instrument investments (10) 1,042,024,829.00 1,042,024,829.00
Other non-current financial assets
Investment property
Fixed assets (11) 24,397,907,946.02 25,480,674,048.94
Construction in progress (12) 3,012,446,289.29 2,434,182,101.13
Productive biological assets
Oil and gas assets
Right-of-use assets (13) 1,410,177,981.09 1,440,365,248.31
Intangible assets (14) 294,231,463.55 297,921,548.81
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets (15) 148,337,498.41 153,756,548.31
Other non-current assets (16) 81,048,057.73 30,630,858.13
Total non-current assets 30,389,241,304.38 30,882,536,966.70
Total assets 47,017,104,048.88 55,147,123,275.30
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Huo Gang Chief Financial Officer: Jiang Xiaoyu Chief Accountant: Sun Yanbin
1
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued)
As at 30 June 2022
(Expressed in Renminbi unless otherwise indicated)
(English Translation for Reference Only)
Liabilities and equities Notes 5 30 Jun, 2022 1 Jan, 2022
Current Liabilities
Short-term loans （17） 3,349,342,280.00 4,053,088,140.00
Loan from central bank
Loan from other banks
Financial liability held for trading
Derivative financial liabilities
Notes payable （18） 2,223,588,546.63 4,635,083,376.48
Accounts payable （19） 3,354,694,032.39 5,352,272,685.89
Advance from customers
Contract liabilities （20） 3,977,011,514.55 4,708,188,093.78
Financial assets sold for repurchase
Deposits from customers and interbank
Receipt from vicariously traded securities
Receipt from vicariously underwriting securities
Employee benefits payable （21） 13,420,022.01 152,095,376.49
Taxes payable （22） 180,727,989.86 114,267,988.70
Other payables （23） 1,164,276,844.55 1,348,025,731.98
Handling charges and commission payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year （24） 1,368,468,080.81 310,780,518.14
Other current liabilities （25） 517,011,496.89 612,064,452.20
Total current liabilities 16,148,540,807.69 21,285,866,363.66
Non-current liabilities
Provision for insurance contract
Long-term loans （26） 3,002,383,788.13 4,222,821,771.74
Bonds payable （27） 5,173,595,326.65 5,054,251,668.83
Including: Preferred stock
Perpetual bond
Leasing liabilities （28） 1,404,900,432.63 1,424,667,169.15
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income （29） 72,523,320.89 93,106,285.89
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 9,653,402,868.30 10,794,846,895.61
Total liabilities 25,801,943,675.99 32,080,713,259.27
Shareholders' equity:
Share capital （30） 4,108,209,106.00 4,108,191,379.00
Other equity instruments （31） 947,866,337.87 947,882,663.63
Including: Preferred stock
Perpetual bond
Capital reserves （32） 13,272,196,060.95 13,272,134,173.09
Less: treasury shares
Other comprehensive income
Special reserves （33） 31,489,563.23 337,978.57
Surplus reserves （34） 1,195,116,522.37 1,195,116,522.37
General risk reserve
Undistributed profits （35） 1,074,126,847.65 2,977,306,297.64
Total equity attributable to equity holders of the parent company 20,629,004,438.07 22,500,969,014.30
Non-controlling interests 586,155,934.82 565,441,001.73
Total shareholder's equity 21,215,160,372.89 23,066,410,016.03
Total of liabilities and owners’ equity 47,017,104,048.88 55,147,123,275.30
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Huo Gang Chief Financial Officer: Jiang Xiaoyu Chief Accountant: Sun Yanbin
2
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
BENGANG STEEL PLATES CO., LTD.
COMPANY’S STATEMENT OF FINANCIAL POSITION
As at 30 June 2022
(Expressed in Renminbi unless otherwise indicated)
(English Translation for Reference Only)
Assets Notes 14 30 Jun, 2022 1 Jan, 2022
Current assets
Cash at bank and on hand 3,245,493,319.16 7,580,872,007.38
Financial assets held for trading
Derivative financial assets
Notes receivable 141,318,446.72 1,514,416,395.80
Accounts receivable （1） 427,566,795.04 353,631,563.42
Accounts receivable financing （2） 240,966,150.37 1,504,640,362.79
Prepayments 1,858,269,949.81 1,004,241,075.82
Other receivables （3） 171,552,044.44 268,606,048.52
Inventories 6,510,907,459.18 8,289,784,141.78
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 109,688,585.30 670,787,069.41
Total current assets 12,705,762,750.02 21,186,978,664.92
Non-current assets
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments （4） 2,835,186,190.50 2,015,186,190.50
Other equity instrument investments 1,041,624,829.00 1,041,624,829.00
Other non-current financial assets
Investment property
Fixed assets 23,106,390,614.05 24,110,222,815.60
Construction in progress 2,979,165,055.81 2,401,120,232.45
Productive biological assets
Oil and gas assets
Right-of-use assets 1,410,177,981.09 1,440,365,248.31
Intangible assets 176,354,564.69 178,414,033.19
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets 130,638,301.91 124,046,003.13
Other non-current assets 72,428,141.20 22,010,941.60
Total non-current assets 31,751,965,678.25 31,332,990,293.78
Total assets 44,457,728,428.27 52,519,968,958.70
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
3
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
BENGANG STEEL PLATES CO., LTD.
COMPANY’S STATEMENT OF FINANCIAL POSITION (Continued)
As at 30 June 2022
(Expressed in Renminbi unless otherwise indicated)
(English Translation for Reference Only)
Liabilities and shareholders' equities Notes 14 30 Jun, 2022 1 Jan, 2022
Current liabilities
Short-term loans 2,749,342,280.00 3,353,088,140.00
Financial liability held for trading
Derivative financial liabilities
Notes payable 2,223,588,546.63 4,650,517,420.18
Accounts payable 3,953,269,898.68 5,674,841,169.66
Advance from customers
Contract liabilities 3,629,795,956.84 4,660,051,055.89
Employee benefits payable 13,316,760.20 151,595,453.62
Taxes payable 143,785,493.08 40,949,825.13
Other payables 617,698,527.38 683,141,570.83
Liabilities held for sale
Non-current liabilities due within one year 1,368,468,080.81 310,780,518.14
Other current liabilities 471,873,474.39 605,806,637.27
Total current liabilities 15,171,139,018.01 20,130,771,790.72
Non-current liabilities
Long term loans 3,002,383,788.13 4,222,821,771.74
Bonds payable 5,173,595,326.65 5,054,251,668.83
Including: Preferred stock
Perpetual bond
Lease liabilities 1,404,900,432.63 1,424,667,169.15
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income 72,523,320.89 93,106,285.89
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 9,653,402,868.30 10,794,846,895.61
Total liabilities 24,824,541,886.31 30,925,618,686.33
Shareholder’s equity:
Share capital 4,108,209,106.00 4,108,191,379.00
Other equity instruments 947,866,337.87 947,882,663.63
Including: Preferred stock
Perpetual bond
Capital reserves 12,852,044,378.83 12,851,982,490.97
Less: Treasury shares
Other comprehensive income
Special reserves 22,529,623.02 155,469.58
Surplus reserves 1,195,116,522.37 1,195,116,522.37
Undistributed Profits 507,420,573.87 2,491,021,746.82
Total shareholder's equity 19,633,186,541.96 21,594,350,272.37
Total liabilities and shareholder’s equity 44,457,728,428.27 52,519,968,958.70
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
4
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2022
(Expressed in Renminbi unless otherwise indicated)
(English Translation for Reference Only)
Items Notes 5 Current period Previous period
1. Total operating income 35,015,177,304.98 38,588,128,212.14
Including: Operating income (36) 35,015,177,304.98 38,588,128,212.14
Interest income
Premium earned
Income from handling charges and commission
2. Total operating cost 34,212,560,449.82 35,641,572,522.11
Including: Operating cost (36) 33,377,477,540.63 34,592,825,792.72
Interest expense
Expenditure for handling charges and commission
Surrender value
Net expenditure for compensation
Net provision for insurance contract appropriated
Bonus payment for policy
Reinsurance premium
Tax and surcharges (37) 99,885,445.23 241,555,494.92
Selling and distribution expenses (38) 67,430,875.17 59,652,669.72
General and administrative expenses (39) 352,304,684.10 388,678,843.23
Research and development expenses (40) 22,368,496.87 22,504,022.68
Financial expenses (41) 293,093,407.82 336,355,698.84
Including: Interest expense 342,674,208.42 554,219,518.90
Interest income 61,019,147.27 222,276,204.79
Add: Other income (42) 30,655,542.92 32,659,483.34
Income on investment（“-” for loss） (43) 115,842.84 1,835,124.19
Including: Income from associates and joint ventures 85,455.22 281,949.15
Income from derecognition of financial assets measured at amortized cost
Exchange gains（“-” for loss）
Net exposure hedge income（“-” for loss）
Gains from change of fair value （“ -” for loss）
Credit impairment loss （“ -” for loss） (44) -793,906.73 2,049,977.83
Assets impairment loss （“ -” for loss） (45) -72,880,991.53 6,629,442.12
Assets disposal gains（“-” for loss） (46) 3,648,546.62 130,675.05
3. Operational profit（“-” for loss） 763,361,889.28 2,989,860,392.56
Add: Non-operating income (47) 30,572,281.35 3,273,128.46
Less: Non-operating expenses (48) 10,765,339.79 22,989,643.14
4. Total profit (“ -” for loss) 783,168,830.84 2,970,143,877.88
Less: Income tax expenses (49) 203,204,954.60 746,977,590.45
5. Net profit（“-” for loss） 579,963,876.24 2,223,166,287.43
1.Classification by continuing operating
1.Net profit from continuing operation（“-” for loss） 579,963,876.24 2,223,166,287.43
2.Net profit from discontinued operation（“-” for loss）
2.Classification by ownership
1. Net profit attributable to the owners of parent company （“ -” for loss） 561,735,377.41 2,208,798,167.91
2. Net profit attributable to non-controlling shareholders （“-” for loss） 18,228,498.83 14,368,119.52
6.Other comprehensive income
Other comprehensive income attributable to owners of the parent company after tax
1.Other comprehensive income items that will not be reclassified into gains/losses
1) Re-measurement of defined benefit plans of changes in net debt or net assets
2) Other comprehensive income under the equity method cannot be reclassified
into profit or loss
3) Changes in fair value of investments in other equity instruments
4) Changes in fair value of company's credit risk
2.Other comprehensive income that will be reclassified into profit or loss.
1) Other comprehensive income under the equity method which can be
reclassified into profit or loss
2) Changes in fair value of other debt investments
3) Amount of financial assets reclassified into other comprehensive income
4) Credit impairment provision of other debt investments
5) Cash flow hedges reserve
6) T ranslation differences in foreign currency financial statements
7) Others
Other comprehensive income attributable to non-controlling shareholders’ equity
after tax
7. Total comprehensive income 579,963,876.24 2,223,166,287.43
Total comprehensive income attributable to the owner of the parent company 561,735,377.41 2,208,798,167.91
5
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Items Notes 5 Current period Previous period
Total comprehensive income attributable to non-controlling shareholders 18,228,498.83 14,368,119.52
8. Earnings per share
1）Basic earnings per share XV.2 0.14 0.57
2）Diluted earnings per share XV.2 0.14 0.57
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
6
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
BENGANG STEEL PLATES CO., LTD.
COMPANY’S STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2022
(Expressed in Renminbi unless otherwise indicated)
(English Translation for Reference Only)
Items Notes 14 Current period Previous period
1. Total operating income (5) 35,774,038,070.43 39,081,201,858.29
Less: Operating cost (5) 34,404,712,933.07 35,285,590,888.70
Tax and surcharges 74,061,344.22 213,178,320.80
Selling and distribution expenses 58,854,346.91 55,267,199.05
General and administrative expenses 323,747,875.71 360,747,887.96
Research and development expenses 22,368,496.87 22,504,022.68
Financial expenses 290,720,557.98 327,299,367.65
Including: Interest expense 327,728,944.07 304,352,578.12
Interest income 48,263,709.87 210,228,568.88
Add: Other income 30,272,965.00 32,210,883.34
Income on investment（“-” for loss） (6) 59,198,924.51 1,553,175.04
Including: Income from associates and joint ventures
Income from derecognition of financial assets
measured at amortized cost
Net exposure hedge income（“-” for loss）
Gains from change of fair value （“-” for loss）
Credit impairment loss（“-” for loss） -1,392,974.69 2,049,977.83
Assets impairment loss（“-” for loss） -72,880,991.53 6,571,234.79
Assets disposal gains（“-” for loss） 3,669,258.68 130,675.05
2. Operational profit（“-” for loss） 618,439,697.64 2,859,130,117.50
Add: Non-operating income 24,296,108.68 1,295,851.57
Less: Non-operating expenses 10,736,478.75 22,989,643.14
3. Total profit (“-” for loss) 631,999,327.57 2,837,436,325.93
Less: Income tax expenses 150,685,673.12 717,963,491.96
4. Net profit（“-” for loss） 481,313,654.45 2,119,472,833.97
1.Net profit from continuing operation (“-” for loss) 481,313,654.45 2,119,472,833.97
2.Net profit from discontinued operation (“-” for loss)
5.Other comprehensive income
1.Other comprehensive income items that will not be reclassified
into gains/losses
1) Re-measurement of defined benefit plans of changes
2) Other comprehensive income under the equity method cannot be
reclassified into profit or loss
3) Changes in fair value of investments in other equity instruments
4) Changes in fair value of company's credit risk
2.Other comprehensive income that will be reclassified into profit or
loss.
1) Other comprehensive income under the equity method investee
can be reclassified into profit or loss
2) Changes in fair value of other debt investments
3) Amount of financial assets reclassified into other comprehensive
income
4) Credit impairment provision of other debt investments
5) Cash flow hedges reserve
6) Translation differences in foreign currency financial statements
7) Others
6. Total comprehensive income 481,313,654.45 2,119,472,833.97
7. Earnings per share
1）Basic earnings per share
2）Diluted earnings per share
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
7
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2022
(Expressed in Renminbi unless otherwise indicated)
(English Translation for Reference Only)
Items Notes 5 Current period Previous period
1.Cash flow from operating activities
Cash received from sale of goods or rendering of s ervices 30,399,917,736.81 27,681,479,863.67
Net increase of customers’ deposit and interbank deposit
Net increase of loan from central bank
Net increase of loans from other financial institutions
Cash received for premium of original insurance contract
Net cash received for reinsurance business
Net increase of deposit and investment of the insured
Cash from receiving interest, handling charge and commission
Net increase of loans from borrowing funds
Net increase of fund for repurchase business
Net cash received from traded securities
Tax rebate received 411,362,662.88 40,128,927.12
Other cash received relating to operating activities (51) 168,719,124.22 239,319,537.30
Subtotal of cash inflows from operating activities 30,979,999,523.91 27,960,928,328.09
Cash paid for goods and services 28,939,015,822.97 24,177,763,290.52
Net increase of customer’ s loan and advances
Net increase of deposit in central bank and interbank deposit
Cash for payment of compensation for original insurance contract
Net increase in capital lent
Cash for payment of interest, handling charge and commission
Cash for payment of policy bonus
Cash paid to and on behalf of employees 1,281,589,573.82 972,651,151.35
Cash paid for all types of taxes 282,883,307.60 1,082,217,676.19
Other cash paid relating to operating activities (51) 249,058,977.31 203,379,990.00
Subtotal of cash outflows from operating activities 30,752,547,681.70 26,436,012,108.06
Net cash flows from operating activities 227,451,842.21 1,524,916,220.03
2. Cash flows from investing activities
Cash received from disposal of investments 3,000,000,000.00
Cash received from return on investments 1,553,175.04
Net cash received from disposal of fixed assets, intangible assets and other
60,800.00
long-term assets
Net cash received from disposal of subsidiary and other operating units
Other cash paid relating to investing activities
Subtotal of cash inflows from investing activities 60,800.00 3,001,553,175.04
Cash paid for acquisition of fixed assets, intangible assets and other long-term
755,407,575.62 1,148,767,202.27
assets
Cash paid for investments 4,600,000,000.00
Net increase of mortgage loan
Net cash received from subsidiary and other operating unit
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities 755,407,575.62 5,748,767,202.27
Net cash flows from investing activities -755,346,775.62 -2,747,214,027.23
3. Cash flows from financing activities
Proceeds from investment
Including: Proceeds from investment of non-controlling shareholders of
subsidiary
Proceeds from borrowings 602,067,123.44 1,512,381,000.00
Other proceeds relating to financing activities (51) 2,548,792,921.60
Subtotal of cash inflows from financing activities 3,150,860,045.04 1,512,381,000.00
Cash repayments of borrowings 1,393,191,834.05 4,477,892,475.61
Cash payments for distribution of dividends, profit or interest expenses 2,708,922,405.78 567,804,337.49
Including: Cash paid to non-controlling shareholders as dividend and profit by
subsidiaries
Other cash payments relating to financing activities (51) 71,693,646.43
Subtotal of cash outflows from financing activities 4,173,807,886.26 5,045,696,813.10
Net cash flows from financing activities -1,022,947,841.22 -3,533,315,813.10
4. Effect of foreign exchange rate changes on cash and cash equivalents 2,217,009.66 -16,349,859.91
5. Net increase in cash and cash equivalents -1,548,625,764.97 -4,771,963,480.21
Add: Cash and cash equivalents at the opening of the period 6,299,099,063.48 9,229,417,595.12
6. Cash and cash equivalents at the ending of the period 4,750,473,298.51 4,457,454,114.91
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
8
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
BENGANG STEEL PLATES CO., LTD.
COMPANY’S STATEMENT OF CASH FLOWS
For the year ended 30 June 2022
(Expressed in Renminbi unless otherwise indicated)
(English Translation for Reference Only)
Items Notes 14 Current period Previous period
1. Cash flow from operating activities
Cash received from sale of goods or rendering of services 30,919,471,674.38 27,601,858,925.93
Tax rebate received 406,487,928.59 15,393,055.96
Other cash received relating to operating activities 155,803,337.55 230,589,337.92
Subtotal of cash inflows from operating activities 31,481,762,940.52 27,847,841,319.81
Cash paid for goods and services 29,479,472,246.34 24,802,523,270.32
Cash paid to and on behalf of employees 1,197,357,426.66 926,763,546.78
Cash paid for all types of taxes 102,560,662.62 984,236,622.57
Other cash paid relating to operating activities 138,755,917.63 139,392,329.61
Subtotal of cash outflows from operating activities 30,918,146,253.25 26,852,915,769.28
Net cash flows from operating activities 563,616,687.27 994,925,550.53
2. Cash flows from investing activities
Cash received from disposal of investments 3,000,000,000.00
Cash received from return on investments 53,139,377.16 1,553,175.04
Net cash received from disposal of fixed assets, intangible
60,800.00
assets and other long-term assets
Net cash received from disposal of subsidiary and other
33,061,417.35
operating units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 86,261,594.51 3,001,553,175.04
Cash paid for acquisition of fixed assets, intangible assets and
749,875,275.53 1,131,314,182.16
other long-term assets
Cash paid for investments 850,000,000.00 4,600,000,000.00
Net cash paid for acquisition of subsidiary and other operating
unit
Other cash paid relating to investing activities
Subtotal of cash outflows paid for investing activities 1,599,875,275.53 5,731,314,182.16
Net cash flows from investing activities -1,513,613,681.02 -2,729,761,007.12
3. Cash flows from financing activities
Proceeds from investment
Cash received from borrowings 602,067,123.44 1,412,381,000.00
Other cash received relating to financing activities 2,548,792,921.60
Subtotal of cash inflows from financing activities 3,150,860,045.04 1,412,381,000.00
Cash repayments of borrowings 1,293,191,834.05 3,722,892,475.61
Cash payments for distribution of dividends, profit or interest 2,695,763,155.78 544,896,337.46
Other cash payments relating to financing activities 71,693,646.43
Subtotal of cash outflows from financing activities 4,060,648,636.26 4,267,788,813.07
Net cash flows from financing activities -909,788,591.22 -2,855,407,813.07
4. Effect of foreign exchange rate changes on cash and cash
1,506,171.92 -16,347,695.55
equivalents
5. Net increase in cash and cash equivalents -1,858,279,413.05 -4,606,590,965.21
Add: Cash and cash equivalents at the opening of the period 5,048,875,333.01 8,897,859,003.60
6. Cash and cash equivalents at the ending of the period 3,190,595,919.96 4,291,268,038.39
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
9
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
For the year ended 30 June 2022
(Expressed in Renminbi unless otherwise indicated)
(English Translation for Reference Only)
Current period
Owner's equity attributable to parent company
Total of
Items Other equity instruments Less: Other General Non-controlling
Undistributed shareholders’
Share capital P reference P erpetual Capital reserves Treasury comprehensive Special reserves Surplus reserves risk Subtotal interest
Others profit equity
shares bond shares income reserve
1. Ending balance of last year 4,108,191,379.00 947,882,663.63 13,272,134,173.09 337,978.57 1,195,116,522.37 2,977,306,297.64 22,500,969,014.30 565,441,001.73 23,066,410,016.03
Add: Change of accounting policies
Correction of errors for last period
Business consolidation under common
control
Others
2. Opening balance of current year 4,108,191,379.00 947,882,663.63 13,272,134,173.09 337,978.57 1,195,116,522.37 2,977,306,297.64 22,500,969,014.30 565,441,001.73 23,066,410,016.03
3. Changes in current year (“ -” for
17,727.00 -16,325.76 61,887.86 31,151,584.66 -1,903,179,449.99 -1,871,964,576.23 20,714,933.09 -1,851,249,643.14
decrease)
1) Total comprehensive income 561,735,377.41 561,735,377.41 18,228,498.83 579,963,876.24
2) Capital increase and decrease by
17,727.00 -16,325.76 61,887.86 63,289.10 63,289.10
shareholders
(1) Common share invested by shareholders
(2) Capital input by the holder of other
equity instruments
(3) Share-based payment attributable to
owners’ equity
(4) Others 17,727.00 -16,325.76 61,887.86 63,289.10 63,289.10
3) P rofit distribution -2,464,914,827.40 -2,464,914,827.40 -2,464,914,827.40
(1) Appropriation to surplus reserves
(2) Appropriation to general risk reserve
(3) P rofit distribution to shareholders -2,464,914,827.40 -2,464,914,827.40 -2,464,914,827.40
(4) Others
4) Transfers within shareholders’ equity
(1) Capital reserves transferred into paid-in
capital (or stock)
(2) Surplus reserves transferred into paid-in
capital (or stock)
(3) Surplus reserves to recover loss’
(4) Net changes of defined contribution
plans transferred into Retained Earnings
(5) Other comprehensive income
transferred into Retained Earnings
(6) Others
5) Special reserves 31,151,584.66 31,151,584.66 2,486,434.26 33,638,018.92
(1) P rovision of special reserves 38,838,893.44 38,838,893.44 2,489,359.76 41,328,253.20
(2) Use of special reserves 7,687,308.78 7,687,308.78 2,925.50 7,690,234.28
6) Others
4. Ending balance of current year 4,108,209,106.00 947,866,337.87 13,272,196,060.95 31,489,563.23 1,195,116,522.37 1,074,126,847.65 20,629,004,438.07 586,155,934.82 21,215,160,372.89
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (Continued)
For the year ended 30 June 2022
(Expressed in Renminbi unless otherwise indicated)
(English Translation for Reference Only)
P revious period
Owner's equity attributable to parent company
Items Other equity instruments Less: Other General Non-controlling Total of shareholders’
Undistributed
Share capital P reference P erpetual Capital reserves Treasury comprehensive Special reserves Surplus reserves risk Subtotal interest equity
Others profit
shares bond shares income reserve
1. Ending balance of last year 3,875,371,532.00 1,146,290,662.42 12,343,209,847.29 300,412.14 961,105,529.85 2,692,018,405.40 21,018,296,389.10 532,388,405.68 21,550,684,794.78
Add: Change of accounting policies
Correction of errors for last period
Business consolidation under common control
Others
2. Opening balance of current year 3,875,371,532.00 1,146,290,662.42 12,343,209,847.29 300,412.14 961,105,529.85 2,692,018,405.40 21,018,296,389.10 532,388,405.68 21,550,684,794.78
3. Changes in current year (“ -” for decrease) 232,819,847.00 -198,407,998.79 928,924,325.80 37,566.43 234,010,992.52 285,287,892.24 1,482,672,625.20 33,052,596.05 1,515,725,221.25
1) Total comprehensive income 2,500,582,902.58 2,500,582,902.58 33,052,596.05 2,533,635,498.63
2) Capital increase and decrease by 232,819,847.00 -198,407,998.79 928,924,325.80 963,336,174.01 963,336,174.01
shareholders
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity
instruments
(3) Share-based payment attributable to
owners' equity
(4) Others 232,819,847.00 -198,407,998.79 928,924,325.80 963,336,174.01 963,336,174.01
3) P rofit distribution 234,010,992.52 2,215,295,010.34 -1,981,284,017.82 -1,981,284,017.82
(1) Appropriation to surplus reserves 234,010,992.52 -234,010,992.52
(2) Appropriation to general risk reserve
(3) P rofit distribution to shareholders 1,981,284,017.82 -1,981,284,017.82 -1,981,284,017.82
(4) Others
4) Transfers within shareholders’ equity
(1) Capital reserves transferred into paid-in
capital (or stock)
(2) Surplus reserves transferred into paid-in
capital (or stock)
(3) Surplus reserves to recover loss
(4) Net changes of defined contribution plans
transferred into Retained Earnings
(5) Other comprehensive income transferred
into Retained Earnings
(6) Others
5) Special reserves 37,566.43 37,566.43 37,566.43
(1) P rovision of special reserves 63,036,424.58 63,036,424.58 63,036,424.58
(2) Use of special reserves 62,998,858.15 62,998,858.15 62,998,858.15
6) Others
4. Ending balance of current year 4,108,191,379.00 947,882,663.63 13,272,134,173.09 337,978.57 1,195,116,522.37 2,977,306,297.64 22,500,969,014.30 565,441,001.73 23,066,410,016.03
11
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
12
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
BENGANG STEEL PLATES CO., LTD.
COMPANY’S STATEMENT OF CHANGES IN OWNERS’ EQUITY
For the year ended 30 June 2022
(Expressed in Renminbi unless otherwise indicated)
(English Translation for Reference Only)
Current period
Other equity instruments Less: Other
Items Special Undistributed
Share capital Preference Perpetual Capital reserves T reasury comprehensi Surplus reserves T otal owners’ equity
Others reserves profits
shares bond shares ve income
1. Ending balance of last year 4,108,191,379.00 947,882,663.63 12,851,982,490.97 155,469.58 1,195,116,522.37 2,491,021,746.82 21,594,350,272.37
Add: Change of accounting policies
Correction of errors for last period
Others
2. Opening balance of current year 4,108,191,379.00 947,882,663.63 12,851,982,490.97 155,469.58 1,195,116,522.37 2,491,021,746.82 21,594,350,272.37
3. Changes in current year (“-” for decrease) 17,727.00 -16,325.76 61,887.86 22,374,153.44 -1,983,601,172.95 -1,961,163,730.41
1) T otal comprehensive income 481,313,654.45 481,313,654.45
2) Capital increase and decrease by shareholders 17,727.00 -16,325.76 61,887.86 63,289.10
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity instruments
(3) Share-based payment attributable to shareholders’ equity
(4) Others 17,727.00 -16,325.76 61,887.86
3) Profit distribution -2,464,914,827.40 -2,464,914,827.40
(1) Appropriation of surplus reserves 0.00
(2) Profit distribution to shareholders -2,464,914,827.40 -2,464,914,827.40
(3) Others
4) T ransfers within shareholders’ equity
(1) Capital reserves transferred into paid-in capital (or stock)
(2) Surplus reserves transferred into paid-in capital (or stock)
(3) Surplus reserves to recover loss
(4) Net changes of defined contribution plans transferred into
Retained Earnings
(5) Other comprehensive income transferred into retained earnings
(6) Others
5) Special reserves 22,374,153.44 22,374,153.44
(1) Provision of special reserves 30,052,685.76 30,052,685.76
(2) Use of special reserves 7,678,532.32 7,678,532.32
6) Others
4. Ending balance of current year 4,108,209,106.00 947,866,337.87 12,852,044,378.83 22,529,623.02 1,195,116,522.37 507,420,573.87 19,633,186,541.96
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
13
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
BENGANG STEEL PLATES CO., LTD.
COMPANY’S STATEMENT OF CHANGES IN OWNERS’ EQUITY (Continued)
For the year ended 30 June 2022
(Expressed in Renminbi unless otherwise indicated)
(English Translation for Reference Only)
Previous period
Other equity instruments Less: Other
Items Special Undistributed
Share capital Preference Perpetual Capital reserves T reasury comprehensi Surplus reserves T otal owners’ equity
Others reserves profits
shares bond shares ve income
1. Ending balance of last year 3,875,371,532.00 1,146,290,662.42 11,923,058,165.17 120,972.62 961,105,529.85 2,366,206,832.00 20,272,153,694.06
Add: Change of accounting policies
Correction of errors for last period
Others
2. Opening balance of current year 3,875,371,532.00 1,146,290,662.42 11,923,058,165.17 120,972.62 961,105,529.85 2,366,206,832.00 20,272,153,694.06
3. Changes in current year (“-” for decrease) 232,819,847.00 -198,407,998.79 928,924,325.80 34,496.96 234,010,992.52 124,814,914.82 1,322,196,578.31
1) T otal comprehensive income 2,340,109,925.16 2,340,109,925.16
2) Capital increase and decrease by shareholders 232,819,847.00 -198,407,998.79 928,924,325.80 963,336,174.01
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity instruments
(3) Share-based payment attributable to shareholders’ equity
(4) Others 232,819,847.00 -198,407,998.79 928,924,325.80
3) Profit distribution 234,010,992.52 -2,215,295,010.34 -1,981,284,017.82
(1) Appropriation of surplus reserves 234,010,992.52 -234,010,992.52
(2) Profit distribution to shareholders -1,981,284,017.82 -1,981,284,017.82
(3) Others
4) T ransfers within shareholders' equity
(1) Capital reserves transferred into paid-in capital (or stock)
(2) Surplus reserves transferred into paid-in capital (or stock)
(3) Surplus reserves to recover loss’
(4) Net changes of defined contribution plans transferred into
Retained Earnings
(5) Other comprehensive income transferred into retained earnings
(6) Others
5) Special reserves 34,496.96 34,496.96
(1) Provision of special reserves 43,962,017.71 43,962,017.71
(2) Use of special reserves 43,927,520.75 43,927,520.75
6) Others
4. Ending balance of current year 4,108,191,379.00 947,882,663.63 12,851,982,490.97 155,469.58 1,195,116,522.37 2,491,021,746.82 21,594,350,272.37
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
14
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
I. Basic Information of the Company
1. Company profile
Bengang Steel Plates Co., Ltd. (hereinafter referred to as “Bengang Steel Plates” or “the
Company”), as approved in Liao-Zheng (1997) No. 57 by Liaoning People’s Government on 27
March 1997, was incorporated as a joint stock limited company through public share offer of
domestic listed foreign currency denominated shares (B shares) in the People’s Republic of China
(the “PRC”) on 27 June 1997 by Benxi Steel and Iron (Group) Co., Ltd. (“Benxi Iron and Steel
Group”), through reorganization of operations, assets and liabilities of its plants, namely, Steel
Smelting Plant, Primary Rolling Plant and Continuous Hot Rolling Plant.
As approved by China Securities Regulatory Commission (hereinafter referred to as “the CSRC”),
the Company issued 400,000,000 B-shares at HKD 2.38 each in Shenzhen Stock Exchange on 10
June 1997. On 3 November 1997, the Company issued another 120,000,000 A-shares (Renminbi
common Shares) at RMB 5.40 each, and listed in Shenzhen Stock Exchange since 15 January
1998. The capital shares were totaled to 1,136,000,000 shares.
On 14 March 2006, according to the resolutions of the Shareholders’ Meeting regarding share
equity relocation, the Share Equity Relocation Scheme, Response to Bengang Steel Plate Co., Ltd.
about Share Equity Relocation issued by Liaoning Provincial Government State-owned Asset
Administrative Committee(hereinafter referred to as the Liaoning SASAC), Benxi Iron and Steel
Group – the only holder of non-negotiable state-owned legal person shares paid the consideration
to the current shareholders to obtain the current option for the 40,800,000 shares of the total
616,000,000 shares it was holding. Shareholding positions have been registered with China
Securities Depository & Clearing Corporation Ltd. Shenzhen Office. However, the total amount of
capital shares of Bengang Steel Plates Co., Ltd. was not changed through the share equity
relocation action.
According to the approval document “Zheng-Jian-Gong-Si-Zi [2006] No. 126” by China
Securities Regulatory Commission on 30 June 2006, the Company was approved to place 2 billion
Renminbi common shares particularly to Benxi Iron and Steel Group and the proceeds would be
used to purchase the related assets of the Benxi Iron and Steel Group. On the same day, Benxi Iron
and Steel Group received circular Zheng-Jian-Gong-Si-Zi [2006] No. 127 issued by China
Securities Regulatory Committee, On the same day, Benxi Iron and Steel Group obtained the
document "Zheng Jian Company Zi (2006) No. 127" issued by the China Securities Regulatory
Commission, which agreed to exempt Benxi Iron and Steel Group from the acquisition of 2 billion
new shares issued by the company, resulting in the number of shares held by the company
reaching 2.5752 billion shares (accounting for the company's 82.12% of the total share capital) to
fulfill the tender offer obligation. On 28 August 2006, as approved by China Securities Depository
& Clearing Corporation Ltd. Shenzhen Office, the registration and conditional placing procedures
of the 2 billion new shares were completed. On 28 September 2006, the privately placed shares
were approved by Shenzhen Stock Exchange to be placed in the stock market. The placing price
was RMB4.6733 per share.
Approved by the China Securities Regulatory Commission [2017] No. 1476, Bengang Steel Plate
Co., Ltd. privately placed no more than 739,371,534 RMB ordinary shares (A shares) to no more
15
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
than 10 issuers. The non-public offering was completed on 9 February 2018, and 739,371,532
shares were actually issued. The placing price was RMB5.41 per share.
On August 20, 2021, Liaoning Provincial State-owned Assets Supervision and Administration
Commission (hereinafter referred to as the Liaoning SASAC) and Ansteel Group Co., Ltd.
(hereinafter referred to as Ansteel Group) signed the "Liaoning Provincial People's Government
State-owned Assets Supervision and Administration Commission and Ansteel Group Co., Ltd. on
Free Transfer Agreement on the State-owned Equity of Bengang Group Co., Ltd. According to the
agreement, Liaoning State-owned Assets Supervision and Administration Commission will
transfer its 51% shares of Bengang Group Co., Ltd. (hereinafter referred to as Bengang Group) to
Angang Group for free. After the completion of the free transfer, Ansteel Group will become the
controlling shareholder of Bengang Group, and Ansteel Group will hold 81.07% of the total share
capital of Bengang Group Co., Ltd. indirectly.
As at 30 June 2022, the capital shares were totaled to 4,108,209,106 shares.
The Company’s uniform social credit code: 91210000242690243E.
The Company’s registered address: 16th Renmin Road, Pingshan District, Benxi, Liaoning
Province.
The Company’s legal representative: Huo Gang.
The parent company of Bengang Steel Plates Co., Ltd is Benxi Steel and Iron (Group) Co., Ltd.
and the actual controller is Ansteel Group Co., Ltd.
Bengang Steel Plates Co., Ltd. belongs to ferrous metal smelting and rolling processing industry
and is mainly involved in producing and trading of ferrous metal products.
The financial statements have been approved for reporting by the board of directors of the
Company on 18 August 2022.
2. Consolidation scope
Please refer to “Note IX. Equity in other entities” in this note for the relevant information of the
Company's subsidiaries.
Please refer to “VIII. Changes in the scope of consolidation” in this note for the changes in the
scope of consolidation during the reporting period.
II. Basis of preparation
1. Basis of preparation
The financial statements have been prepared on the going concern basis of actual trading and
events in accordance with “Accounting Standards for Business Enterprises – Basic Standard” and
relevant specific standards, application materials, interpretations (together hereinafter referred to
as “Accounting Standards for Business Enterprises”) issued by the Ministry of Finance, and
“Information Disclosure Rules for Companies of securities for public issuance No. 15 – General
Regulations for Financial Statements” issued by the China Securities Regulatory Commission.
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
2. Going concern
The Company is operating normally and in a good condition, and thus has the capability to
continue to operate in the next twelve months from the end of reporting period.
III. Significant accounting policies and accounting estimates
Notes for specific accounting policies and accounting estimates:
The following disclosed content covers the specific accounting policies and accounting estimates
that are adopted by the Company based on the actual production and operation characteristics.
Please refer to Note V.10 Financial instruments, 11 Inventory, 15Fixed assets, 18 Intangible assets,
25 Revenue under “3. Significant accounting policies and accounting estimates” for details.
1. Statement of compliance with China Accounting Standards for Business Enterprises
The financial statements present truly and completely the financial position, operation results and
cash flows of the Company during the reporting period in accordance with China Accounting
Standards for Business Enterprises.
2. Accounting year
The Accounting year is from 1 January to 31 December.
3. Operating period
The operating period is twelve months.
4. Functional currency
The Company’s functional currency is RMB.
5. The accounting treatment for Business combination under/not under common control
(1) Business combination under common control
The assets and liabilities that the Company acquired in a business combination shall be measured
on the basis of their carrying amount of acquiree’s assets, liabilities (as well as the goodwill
arising from the business combination) in the consolidated financial statement of the ultimate
controller on the combining date. As for the balance between the carrying amount of the net assets
obtained by the Company and the carrying amount of the consideration paid by it (or the total par
value of the shares issued), capital reserve needs to be adjusted. If the capital reserve is not
sufficient, any excess shall be adjusted against retained earnings.
(2) Business combination not under common control
The Company shall, on the acquisition date, measure the assets given and liabilities incurred or
assumed by an enterprise for a business combination in light of their fair values, and shall record
17
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
the balances between them and their carrying amounts into the profits and losses at the current
period. The Company shall recognize the positive balance between the combination costs and the
fair value of the identifiable net assets it obtains from the acquiree as goodwill. The Company
shall treat the negative balance between the combination costs and the fair value of the identifiable
net assets it obtains from the acquiree into the profits and losses of the current period.
The intermediary costs and relevant fees for the business combination paid by the acquirer,
including the expenses for audit, assessment and legal services, shall be recorded into the profits
and losses at the current period. The transaction expenses for the issuance of equity securities for
the business combination shall be recorded into the initial recognition amount of equity securities.
6. Consolidation of Financial Statements
(1) Scope of consolidation
The scope of consolidation of consolidated financial statements is determined based on control.
All the subsidies (including separable sections of the investees controlled by the Company) have
been consolidated into the scope of consolidation for this period ended.
(2) Procedure of consolidation
The consolidated financial statements shall be presented by the parent based on the financial
statements of the parent and its subsidiaries, and using other related information. When preparing
consolidated financial statements, the parent shall consider the entire group as an accounting entity,
adopt uniform accounting policies and apply the requirements of Accounting Standard for
Business Enterprises related to recognition, measurement and presentation. The consolidated
financial statements shall reflect the overall financial position, operating results and cash flows of
the group.
The accounting policy and accounting period of the subsidiaries within the consolidation scope
shall be in accordance with those of the Company. If not, it is necessary to make the adjustment
according to the Company’s accounting policies and accounting period when preparing the
consolidated financial statements. For subsidiaries through acquisition that are now under
common control, the financial statements are adjusted according to fair value of identifiable net
assets on the acquisition date. For subsidiaries through acquisition that are under common control,
the assets, liabilities (as well as the goodwill arising from purchasing the subsidiary by the
ultimate controller) are adjusted according to book value of net assets in the financial statements
of the ultimate controller.
The owners’ interests, profit or loss, and comprehensive income of the subsidiary attributable to
the non-controlling shareholders shall be presented separately in the shareholders’ equity of the
consolidated balance sheet and under the item of net profit of the consolidated statement of
comprehensive income and under the item of total comprehensive income. Where losses assumed
by the minority exceed the minority’s interests in the opening equity of a subsidiary, the excess
shall be charged against the minority’s interests.
1) Increasing new subsidiaries and businesses
If the Company has a new subsidiary due to business combination under common control during
the reporting period, it shall adjust the Opening balance in the consolidated statement of financial
position when preparing consolidated statement of financial position. The revenue, expenses and
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
profits of the subsidiaries from the acquisition date to the end of the reporting period are included
in the Company’s consolidated statement of comprehensive income. The cash flow of the
subsidiaries from the acquisition date to the end of the reporting period is included in the
Company’s consolidated statement of cash flows. And meanwhile the Company shall adjust the
relevant items of the comparative financial statements as if the reporting entity for the purpose of
consolidation has been in existence since the date the ultimate controlling party first obtained
control.
When the Company becomes capable of exercising control over an investee under common
control due to additional investment or other reasons, adjustment shall be made as if the reporting
entity after the combination has been in existence since the date the ultimate controlling party first
obtained control. The investment income recognized between date of previously obtaining equity
investment and the date the acquiree and acquirer are under common control, which is later, and
the combining date, other comprehensive income and other changes of net assets arising from the
equity investment previously-held before obtaining the control the acquiree shall be adjusted
against the prior retained earnings of the comparative financial statements and the current profit or
loss respectively.
If it is now under common control, the Company shall not adjust the Opening balance in the
consolidated statement of financial position when preparing consolidated statement of financial
position. The revenue, expenses and profits of the subsidiaries from the acquisition date to the end
of the reporting period are included in the parent company’s consolidated statement of
comprehensive income. The cash flow of the subsidiaries from the acquisition date to the end of
the reporting period is included in the Company’s consolidated statement of cash flows.
When the Company becomes capable of exercising control over an investee now under common
control due to additional investment or other reasons, the acquirer shall remeasure its previously
held equity interest in the acquiree to its fair value at the acquisition date. The difference between
the fair value and the carrying amount shall be recognized as investment income for the period
when the acquisition takes place. When the previously-held equity investment is accounted for
under the equity method, any other comprehensive income previously recognized in relation to the
acquiree’s equity changes shall be transferred to profit or loss for the current period when the
acquisition takes place. Other comprehensive income arising from
remeasurement of defined benefit plan is excluded.
2) Disposing subsidiaries or businesses
① General treatment
If the Company disposes a subsidiary during the reporting period, the revenue, expenses and
profits of the subsidiary from the opening of the reporting period to disposal date are included in
the Company’s consolidated statement of comprehensive income. The cash flow of the
subsidiaries from the opening of the reporting period to disposal date is included in the Company’s
consolidated statement of cash flows.
When the Company loses control over an investee due to partial disposal or other reasons, the
acquirer shall re-measure the remaining equity interests in the acquiree to its fair value at the
acquisition date. The difference, between sums of consideration received for disposal equity
shares and fair value of the remaining shares, and sums of share of net assets of the subsidiary
calculated continuously from the acquisition date or the combination date based on the previous
19
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
shareholding proportion and goodwill, shall be recognized as investment income for the period
when the Company loses control over acquiree. When the previously-held equity investment is
accounted for under the equity method, any other comprehensive income previously recognized in
relation to the acquiree’s equity changes, and other equity changes rather than changes from net
profit, other comprehensive income and profit distribution, shall be transferred to investment
income for the current period when the Company loses control over acquiree. Other
comprehensive income arising from re-measurement of defined benefit plan is excluded. When the
Company loses control over a subsidiary due to the increase of capital from other investors and
thus the shareholding ratio of the Company declines, accounting treatment shall be in accordance
with the above-mentioned principles.
② Disposing subsidiaries by multiple transactions
Where the Company loses control of a subsidiary in multiple transactions in which it disposes of
its subsidiary in stages, in determining whether to account for the multiple transactions as a single
transaction, the Company shall consider all of the terms and conditions of the transactions and
their economic effects. One or more of the following may indicate that the Company shall account
for the multiple arrangements as a single transaction:
(a) Arrangements are entered into at the same time or in contemplation of each other;
(b) Arrangements work together to achieve an overall commercial effect;
(c) The occurrence of one arrangement is dependent on the occurrence of at least one other
arrangement; and
(d) One arrangement considered on its own is not economically justified, but it is
economically justified when considered together with other arrangements.
If each of the multiple transactions forms part of a bundled transaction which eventually results in
loss of control of the subsidiary, these multiple transactions shall be accounted for as a single
transaction. In the consolidated financial statements, the difference between the consideration
received and the corresponding proportion of the subsidiary’s net assets in each transaction prior
to the loss of control shall be recognized in other comprehensive income and transferred to the
profit or loss when the Company eventually loses control of the subsidiary.
If each of the multiple transactions which eventually results in loss of control of the subsidiary do
not form part of a bundled transaction, apply the treatment of disposing partial long-term equity
investments in a subsidiary without loss of control prior to the loss of control. After the loss of
control, apply the treatment of disposing the subsidiary in common cases.
3) Acquiring the subsidiaries’ equity interest held by non-controlling shareholders
Where the Company has acquired a subsidiary’s equity interest held by non-controlling
shareholders, the difference between the increase in the cost of long-term investments as a result
of acquisition of non-controlling interests and the share of net assets of the subsidiary calculated
continuously from the acquisition date or the combination date based on the new shareholding
proportion shall be adjusted to the capital reserve( capital premium or share premium) in the
consolidated financial statements. If the balance of the capital reserve is not sufficient, any excess
shall be adjusted against retained earnings.
4) Disposing portion of equity investments in subsidiaries without losing control
20
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
When the Company disposes of a portion of the long-term equity investments in a subsidiary
without loss of control, the difference between the amount of the consideration received and the
corresponding portion of the nest assets of the subsidiary calculated continuously from the
acquisition date or the combination date related to the disposal of the long-term equity investments
shall be adjusted to the capital reserve (capital premium or share premium) in the consolidated
financial statements. If the balance of the capital reserve is not sufficient, any excess shall be
adjusted against retained earnings.
7. Classification of joint venture arrangements and accounting treatment
Joint venture arrangements are divided into joint operations and joint ventures.
When the Company is a joint venture party of a joint venture arrangement and have the assets
related to the arrangement and assumes the liabilities related to the arrangement, it is a joint
operation.
The Company confirms the following items related to the share of interest in the joint operation
and performs accounting treatment in accordance with the relevant enterprise accounting
standards:
(a) Confirm the assets held by the company separately, and confirm the assets held jointly by
the Company's share;
(b) Recognize the liabilities assumed by the Company separately and the liabilities jointly
assumed by the company's share;
(c) Recognize the income generated by the sale of the Company’s share of common operating
output;
(d) Recognize the revenue generated from the sale of joint operations based on the Company's
share;
(e) Confirm the expenses incurred separately and the expenses incurred in the joint operation
according to the Company's share.
8. Recognition of cash and cash equivalents
The term “cash” refers to the cash on hand and the unrestricted deposit. And the term “cash
equivalents” refers to short-term (maturing within three months from acquisition) and highly
liquid investments that are readily convertible to known amounts of cash and which are subject to
an insignificant risk of change in value.
9. Foreign currency transaction and translation of foreign currency financial statements
(1) Foreign currency transaction
Foreign currency transactions are translated into RMB at the current rate at the day of transactions.
The foreign currency monetary items shall be translated at the spot exchange rate on the balance
sheet date. The balance of exchange arising from the difference between the spot exchange rate on
the balance sheet date and the spot exchange rate at the time of initial recognition or prior to the
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balance sheet date, except those arising from the raising of special foreign debt for the purchase or
construction of capitalizable assets thus shall be capitalized according to the borrowing costs
capitalization principle, shall be recorded into the profits and losses at the current period.
(2) Translation of foreign currency financial statements
The asset and liability items in the statement of financial position shall be translated at a spot
exchange rate on the balance sheet date. Among the owner's equity items, except the ones as
"undistributed profits", others shall be translated at the spot exchange rate at the time when they
are incurred. The income and expense items in the income statement shall be translated using an
exchange rate that is determined in a systematic and reasonable manner and approximates the spot
exchange rate on the transaction date.
When disposing an overseas business, the Company shall shift the balance, which is presented
under the items of the owner's equities in the statement of financial position and arises from the
translation of foreign currency financial statements related to this oversea business, into the
disposal profits and losses of the current period.
10. Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
(1) Classification of financial instruments
The Company shall classify financial assets on the basis of both the entity’s business model for
managing the financial assets and the contractual cash flow characteristics of the financial asset as:
financial assets measured at amortized cost, financial assets measured at fair value through other
comprehensive income and financial assets measured at fair value through profit or loss at initial
measurement.
A financial asset shall be measured at amortized cost if both of the following conditions are met.
The financial asset is held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
A financial asset shall be measured at fair value through other comprehensive income if both of
the following conditions are met. The financial asset is held within a business model whose
objective is achieved by both collecting contractual cash flows and selling financial assets and the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
The Company may make an election at initial recognition for non-trading equity instrument
investments whether it is designated as a financial asset (equity instrument) that is measured at fair
value through other comprehensive income. The designation is made on the basis of a single
investment, and the related investment meets the definition of an equity instrument from the
issuer's perspective.
Other financial assets other than these are classified as financial assets measured at fair value
through profit or loss. At the initial recognition, in order to eliminate or significantly reduce
accounting mismatches, financial assets that should be classified as measured at amortized value
or financial assets measured at fair value through other comprehensive income can be designated
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
as financial assets measured at fair value through profit or loss.
The Company shall classify financial liabilities as financial liabilities measured at amortized cost
and financial liabilities measured at fair value through profit or loss at initial measurement. In the
initial recognition, in order to eliminate or significantly reduce accounting mismatches, financial
assets can be designated as financial assets measured at fair value and their changes included in
the current profit and loss. According to the above conditions, the Company does not have such
designated financial assets.
The Company may, at initial recognition, designate a financial liability as measured at fair value
through profit or loss because either:
(a) it eliminates or significantly reduces an accounting mismatch;
(b) a group of financial liabilities or financial assets and financial liabilities is managed and
its performance is evaluated on a fair value basis, in accordance with a documented risk
management or investment strategy, and information about the group is provided
internally on that basis to the entity’s key management personnel;
(c) the financial liability contains embedded derivatives that need to be separated.
(2) Recognition and measurement of financial instruments
1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include notes receivables, accounts receivables, other
receivables, long-term receivables, debt investments, etc. At initial recognition, the Company shall
measure a financial asset at its fair value plus or minus transaction costs that are directly
attributable to the acquisition or issue of the financial asset. The Company shall measure account
receivables at their transaction price if the account receivables do not contain a significant
financing component and accounts receivables that the company has decided not to consider for a
financing component of no more than one year.
Interests calculated by using the effective interest method during the holding period shall be.
recognized in profit or loss.
When recovering or disposing the receivables, the difference between the price obtained and. the
carrying value shall be recognized in current profit or loss.
2) Financial assets measured at fair value through other comprehensive income (debt instruments)
Financial assets measured at fair value through other comprehensive income (debt instruments)
include receivables financing, other debt investments, etc. At initial recognition, the Company
shall measure a financial asset at its fair value plus transaction costs that are directly attributable to
the acquisition or issuance of the financial asset. The financial assets are subsequently measured at
fair value. Changes in fair value are included in other comprehensive income except for interest
calculated using the effective interest method, impairment losses or gains and exchange gains and
losses. When the financial assets are derecognized, the accumulated gain or loss previously
recognized in other comprehensive income is transferred from other comprehensive income and
recognized in profit or loss.
3) Financial assets at fair value through other comprehensive income (equity instruments)
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Financial assets at fair value through other comprehensive income (equity instruments). include
other equity instrument investments, etc. At initial recognition, the Company shall measure a
financial asset at its fair value plus transaction costs that are directly attributable to the acquisition
or issue of the financial asset. The financial assets are subsequently measured at fair value.
Changes in fair value are included in other comprehensive income. The dividends obtained are
recognized in profit and loss.
When the financial assets are derecognized, the accumulated gain or loss previously. recognized in
other comprehensive income is transferred from other comprehensive income and recognized in
retained earnings.
4) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include transactional financial assets, derivative
financial assets, other non-current financial assets, etc.
The Company shall measure the financial assets at fair value at initial recognition. Transaction
costs are recognized in profit or loss. Changes in fair value are included in profit or loss.
When the financial assets are derecognized, the difference between the fair value and the. initially
recorded amount is recognized as investment income, and the gains and losses from changes in
fair value are adjusted.
5) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include current financial liabilities,
derivative financial liabilities, etc.
The Company shall measure the financial assets at fair value at initial recognition. Transaction
costs are recognized in profit or loss. Changes in fair value are included in profit or loss.
When the financial liabilities are derecognized, the difference between the fair value and the.
initially recorded amount is recognized as investment income, and the gains and losses from
changes in fair value are adjusted.
6) Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost include short-term borrowings, notes. payables,
accounts payables, other payables, long-term borrowings, bonds payables, long-term payables.
At initial recognition, the Company shall measure a financial liability at its fair value plus.
transaction costs that are directly attributable to the acquisition or issue of the financial asset.
Interests calculated by using the effective interest method during the holding period shall be.
recognized in profit or loss.
When the financial liabilities are derecognized, the difference between the price obtained and. the
carrying value shall be recognized in profit and loss.
(3) Termination of recognition of financial assets and financial assets transfer
When one of the following conditions is met, the company terminates the recognition of financial
assets.
- Termination of contractual rights to receive cash flows from financial assets;
- The financial assets have been transferred, and almost all the risks and rewards in the
ownership of the financial assets have been transferred to the transferee;
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
- The financial assets have been transferred. Although the company has neither transferred
nor retained almost all the risks and rewards of the ownership of the financial assets, it
has not retained control of the financial assets.
If it retained nearly all of the risks and rewards related to the ownership of the financial asset, it
shall not stop recognizing the financial asset.
To judge whether the transfer of a financial asset can satisfy the conditions as prescribed in these
Standards for stopping the recognition of a financial asset, the Company shall follow the principle
of the substance over form. Transfer of an entire financial asset can be divided into partial
financial assets transfer and entire financial asset transfer. If the transfer of an entire financial asset
satisfies the conditions for de-recognition, the difference between the amounts of the following 2
items shall be recorded in the profits and losses of the current period:
1) The book value of the transferred financial asset; and
2) The sum of consideration received from the transfer, and the accumulative amount of the
changes of the fair value originally recorded in the owners' equities (in the event that the
financial asset involved in the transfer is a financial asset Available-for-sale).
If the transfer of partial financial asset satisfies the conditions to derecognize, the entire book
value of the transferred financial asset shall, between the portion whose recognition has been
stopped and the portion whose recognition has not been stopped (under such circumstance, the
service asset retained shall be deemed as a portion of financial asset whose recognition has not
been stopped), be apportioned according to their respective relative fair value, and the difference
between the amounts of the following 2 items shall be included into the profits and losses of the
current period :
1) The book value of the portion whose recognition has been stopped; and
2) The sum of consideration of the portion whose recognition has been stopped, and the
portion of the accumulative amount of the changes in the fair value originally recorded in the
owner's equities which is corresponding to the portion whose recognition has been stopped
(in the event that the financial asset involved in the transfer is a financial asset
Available-for-sale).
If the transfer of financial assets does not satisfy the conditions to stop the recognition, it shall
continue to be recognized as financial assets and the consideration received shall be recognized as
financial liabilities.
(4) Termination of recognition of financial liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in part may the
recognition of the financial liability be terminated in all or partly.
Where the Company (debtor) enters into an agreement with a creditor so as to substitute the
existing financial liabilities by way of any new financial liability, and if the contractual
stipulations regarding the new financial liability is substantially different from that regarding the
existing financial liability, it shall terminate the recognition of the existing financial liability, and
shall at the same time recognize the new financial liability.
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Where the Company makes substantial revisions to part or all of the contractual stipulations of the
existing financial liability, it shall terminate the recognition of the existing financial liability or
part of it, and at the same time recognize the financial liability after revising the contractual
stipulations as a new financial liability.
Where the recognition of a financial liability is totally or partially terminated, the Company shall
include into the profits and losses of the current period the difference between the carrying amount
which has been terminated from recognition and the considerations it has paid (including the
non-cash assets it has transferred out and the new financial liabilities it has assumed).
Where the Company buys back part of its financial liabilities, it shall distribute, on the date of
repurchase, the carrying amount of the whole financial liabilities in light of the comparatively fair
value of the part that continues to be recognized and the part whose recognition has already been
terminated. The gap between the carrying amount which is distributed to the part whose
recognition has terminated and the considerations it has paid (including the noncash assets it has
transferred out and the new financial liabilities it has assumed) shall be recorded into the profits
and losses of the current period.
(5) Determination of the fair value of the financial assets (liabilities)
If active markets for the financial instruments exist, the fair value shall be measured by quoted
prices in the active markets. If active markets for the financial instruments do not exist, valuation
techniques shall be applied for the measurement. The Company uses valuation techniques
appropriate in the circumstances and for which sufficient data are available to measure fair value.
The Company chooses relevant observable inputs for identical or similar assets or liabilities. Only
when relevant observable inputs are unavailable or should the Company use unobservable inputs
for the asset or liability.
(6) Impairment provision of the financial assets
The Company recognize the expected credit loss on financial assets measured at amortized cost,
financial assets measured at fair value through other comprehensive income (debt instruments),
financial guarantee contract, and so on, on the individual or portfolio basis.
The Company considers all reasonable and relevant information, including past events, current
conditions, and forecasts of future economic conditions, and uses the risk of default as the weight
to calculate the probability-weighted amount of present value of difference between the cash flow
receivable from the contract and the cash flow expected to be received to confirm the expected
credit loss.
If the credit risk of the financial instrument has increased significantly since the initial
confirmation, the Company shall measure the loss allowance for a financial instrument at an
amount equal to the lifetime expected credit losses. If the credit risk on a financial instrument has
not increased significantly since initial recognition, the Company shall measure the loss allowance
for that financial instrument at an amount equal to 12-month expected credit losses. The increase
or reversal amount of loss allowance thus formed shall be included in the current profits and losses
as impairment losses or gains.
The measurement of expected credit loss depends on whether there is a significant increase in
credit risk of financial assets since the initial recognition.
The company compares the risk of default on the balance sheet date of financial instruments with
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
the risk of default on the date of initial recognition to determine the relative change in the risk of
default during the expected life of the financial instrument to assess whether there is a significant
increase in credit risk of financial assets since the initial recognition. Generally, the Company
believes that the credit risk of the financial instrument has significantly increased over 30 days
after the due date, unless there is solid evidence that the credit risk of the financial instrument has
not increased significantly since initial recognition.
If the credit risk of a financial instrument at the reporting date is relatively low, the Company
considers that the credit risk of the financial instrument has not increased significantly since the
initial recognition.
If there is objective evidence indicating that a certain financial asset has been impaired, the
Company shall recognize provision for impairment of the financial asset individually.
For account receivables and contract assets recognized according to Accounting Standards for
Business Enterprises No. 14 Revenue (2017), whether a significant financing component is
contained or not, the Company shall always measure the loss allowance at an amount equal to
lifetime expected credit losses.
For lease receivables, the Company shall always measure the loss allowance at an amount equal to
lifetime expected credit losses.
11. Inventory
(1) Inventory classification
Inventories include material in transit, raw material, turnover materials, finished goods, work in
process, issue commodity, materials for consigned processing, etc.
Inventory is initially measured at cost. Inventory cost includes purchase cost, processing cost and
other expenditures incurred to bring inventory to its current location and state.
(2) Valuation method for inventory dispatched
The weighted average method is used to confirm the actual cost of the inventories dispatched.
(3) The basis for confirming the net realizable value of inventories and the methods to make
provision for the inventory impairment loss
On the balance sheet date, inventories shall be measured at the lower of cost and net realizable
value. When the cost of inventories is higher than its net realizable value, provision for inventory
impairment loss shall be made. The net realizable value refers to the amount of the estimated
selling price of the inventory minus the estimated costs that will occur at the time of completion,
estimated selling expenses, and relevant taxes in daily activities.
The net realizable value of inventories (finished products, stock commodity, material, etc.) held
for direct selling in the daily business activity shall be calculated by deducting the estimated sale
expense and relevant taxes from the estimated sale price of inventories; The net realizable value of
inventories for further processing in the daily business activity shall be calculated by deducting the
estimated cost of completion, estimated sale expense and relevant taxes from the estimated sale
price of inventories; The net realizable value of inventories held for the execution of sales
contracts or labor contracts shall be calculated on the ground of the contract price. If the Company
holds more inventories than the quantities subscribed in the sales contract, the net realizable value
of the excessive part of the inventories shall be calculated on the ground of the general sales price.
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
After the inventory impairment is withdrawn, if the factors that previously affected the write-down
of the inventory value have disappeared, causing the net realizable value of the inventory to be
higher than its book value, it shall be reversed within the amount of the inventory impairment that
has been withdrawn, and the reverted amount shall be included in the current profit and loss.
(4) Inventory system
The Company uses perpetual inventory system.
(5) Amortization of low-valued consumables and packing materials
1) Low-valued consumables shall be amortized in full amount on issuance.
2) Packing materials shall be amortized in full amount on issuance.
12. Contract asset
(1) Recognition methods and criteria of contract assets
When either party to a contract has performed, the Company shall present the contract in the
statement of financial position as a contract asset or a contract liability, depending on the
relationship between the Company’s performance and the customer’s payment. If the Company
have the rights to receive consideration (the right is conditioned on factors other than the passage
of time) by transferring goods or services to a customer, the entity shall present the contract as a
contract asset. Contract assets and contract liabilities under the same contract are disclosed in net
amount. An entity shall present any unconditional rights to consideration (only the passage of time
is required) separately as a receivable.
(2) Expected credit loss of contract assets
For the accounting policy of the expected credit loss of contract assets, please refer to Note 10 (6).
Impairment provision of the financial assets .
13. Assets held for sale
(1) Criteria of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only
when decisions about the relevant activities require the unanimous consent of the parties sharing
control. If the Company and other joint venture have joint control of the investee and have rights
to the net assets of the investee, the investee is a joint venture of the Company.
Significant influence is the power to participate in the financial and operating policy decisions of
the investee but not control or join control of those policies. If the Company could exert
significant influence over the investee, the investee is the associate of the Company.
(2) The initial cost of long-term equity investment from business acquisition
1) Long-term equity investment from business acquisition
For a business combination under common control, if the consideration of the combination is
satisfied by paying cash, transfer of non-cash assets or assumption of liabilities and issue of equity
securities, the initial investment cost of the long-term equity investment shall be the absorbing
party’s share of the carrying amount of the owner’s equity of the party being absorbed in the
consolidated financial statements of the ultimate controlling party at combination date. When an
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
investor becomes capable of exercising control over an investee under common control due to
additional investment or other reasons, the initial investment cost shall be the absorbing party’s
share of the carrying amount of the owner’s equity of the party being absorbed in the consolidated
financial statements of the ultimate controlling party at combination date. The difference between
the initial investment cost and the carrying amount of the previously-held equity investment,
together with the additional investment cost for new shares at combination date, shall be adjusted
to the capital reserve. If the balance of capital reserve is not sufficient, any excess shall be adjusted
to retained earnings.
For a business combination not under common control, the initial investment cost of the long-term
equity investment shall be the acquisition cost at the acquisition date. When an investor becomes
capable of exercising control over an investee due to additional investment or other reasons, the
initial investment cost under the cost method shall be the carrying amount of previously-held
equity investment together with the additional investment cost.
2) The initial cost of the long-term equity investment other than from business acquisition
The initial cost of a long-term equity investment obtained by making payment in cash shall be the
purchase cost which is actually paid.
The initial cost of a long-term equity investment obtained on the basis of issuing equity securities
shall be the fair value of the equity securities issued.
(3) Subsequent measurement and profit or loss recognition
1) Cost method
The Company adopts cost method for the long-term investment in subsidiary company. Under the
cost method, an investing enterprise shall, in accordance with the attributable share of the net
profits or losses of the invested entity, recognize the investment profits or losses except the
dividend declared but unpaid, which is included in the payment when acquiring the investment.
2) Equity method
A long-term equity investment in an associate or a joint venture shall be accounted for using the
equity method. Where the initial investment cost of a long-term equity investment exceeds
investor’s interest in the fair values of an investee’s identifiable net assets at the acquisition date,
no adjustment shall be made to the initial investment cost. Where the initial cost is less than the
investor’s interest in the fair values of the investee’s identifiable net assets at the acquisition date,
the difference shall be credited to profit or loss for the current period, and the cost of long-term
equity investment shall be adjusted accordingly.
The Company shall recognize its share of the investee’s net profits or losses, as well as its share of
the investee’s other comprehensive income, as investment income or losses and other
comprehensive income, and adjust the carrying amount of the investment accordingly. The
carrying amount of the investment shall be reduced by the portion of any profit distributions or
cash dividends declared by the investee that is attributable to the investor. The investor’s share of
the investee’s owners’ equity changes, other than those arising from the investee’s net profit or
loss, other comprehensive income or profit distribution, and the carrying amount of the long-term
equity investment shall be adjusted accordingly.
The investor shall recognize its share of the investee’s net profits or losses after making
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
appropriate adjustments according to the Company’s accounting principles and operating period
based on the fair values of the investee’s identifiable net assets at the acquisition date. During the
holding period, if the investee makes consolidated financial statements, the Company shall
calculate its share based on the investee’s net profit, other comprehensive income and the amount
of other owners' equity attribute to the investee in the consolidated financial statements.
The unrealized profits or losses resulting from transactions between the investor and its associate
or joint venture shall be eliminated in proportion to the investor’s equity interest in the investee,
based on which investment income or losses shall be recognized, except the transaction of
investment or sale of assets is a business. Any losses resulting from transactions between the
investor and investee which are attributable to asset impairment shall be recognized in full.
The company’s net losses incurred by joint ventures or associates, in addition to assuming
additional loss obligations, are limited to the book value of long-term equity investments and other
long-term equity that essentially constitutes net investment in joint ventures or associates. If a
joint venture or associated enterprise realizes net profits in the future, the company resumes
recognizing its share of profits after the share of profits makes up for the share of unrecognized
losses.
3) Disposal of long-term equity investment
When disposing long-term equity investment, the difference between the proceeds actually
received and the carrying amount shall be recognized in profit or loss for the current period.
Partial disposal of long-term equity investments accounted for by the equity method, and the
remaining equity is still accounted for by the equity method, the other comprehensive income
recognized by the original equity method shall be carried forward according to the same basis as
the direct disposal of related assets or liabilities by the investee. All other changes in the interests
of the holders are carried forward to the current profit and loss on a pro rata basis.
When an investor can no longer exercise joint control of or significant influence over an investee
due to partial disposal of equity investment or other reasons, any other comprehensive income
previously recognized shall be accounted for on the same basis as would have been required if the
investee had directly disposed of the related assets or liabilities for the current period upon
discontinuation of the equity method. Other owner's equity change shall be transferred into profit
or loss of current period in full when the Company cease to adopt the equity method.
When an investor can no longer control the investee due to partial disposal, when the individual
financial statements are prepared, the remaining equity can exercise joint control or significant
influence on the investee, the equity method shall be used to account for the remaining equity. It is
deemed that the equity method is adopted for adjustment since the acquisition, and the other
comprehensive income recognized before the control of the investee is obtained is carried forward
on the same basis as the direct disposal of related assets or liabilities by the investee, because the
equity method is used for accounting. The confirmed changes in other owners’ equity are carried
forward to the current profit and loss on a pro rata basis. If the remaining equity cannot exercise
joint control or exert significant influence on the investee, it shall be recognized as a financial
asset, and the difference between its fair value and book value on the date when control is lost
shall be included in the current profit and loss, and other comprehensive income and other owner’s
interests previously recognized shall be transferred to profit or loss in full.
If the equity investment of a subsidiary is disposed through multiple transactions until it loses
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
control, which is a package transaction, each transaction shall be accounted as a transaction that
disposes of the equity investment of the subsidiary and loses control. Each transaction before the
loss of control, the difference between the disposal price and the book value of the corresponding
disposed part of long-term equity investment is firstly recognized as other comprehensive income
in individual financial statements, and then transferred to the current profit and loss when the
control is lost. If it is not a package transaction, each transaction shall be accounted separately.
14. Investment property
Investment property refers to real estate held for the purpose of earning rent or capital appreciation,
or both, including leased land use rights, land use rights held and prepared for transfer after
appreciation, and leased buildings (Buildings that are leased after completion of self-construction
or development activities and buildings that are being used for rental in the future during
construction or development).
Subsequent expenditures related to investment property are included in the cost of investment
property when the relevant economic benefits are likely to flow in and their costs can be reliably
measured. Otherwise, they are included in the current profit and loss when incurred.
The company uses the cost model to measure the existing investment property. For investment
property measured according to the cost model - the rental building adopts the same depreciation
policy as the fixed assets of the company, and the land use right for rental is amortized according
to the same amortization policy as the intangible assets.
15. Fixed assets
(1) Recognition of Fixed assets
The term "fixed assets" refers to the tangible assets held for the sake of producing commodities,
rendering labor service, renting or business management and of which useful life is in excess of
one fiscal year. No fixed asset may be recognized unless it simultaneously meets the conditions as
follows:
1) The economic benefits pertinent to the fixed asset are likely to flow into the enterprise; and
2) The cost of the fixed asset can be measured reliably.
Fixed assets are initially measured at cost (and considering the impact of expected dismantling
cost factors).
Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the
related economic benefits are likely to flow in and their costs can be reliably measured; the book
value of the replaced part is derecognized; all other subsequent expenditures are incurred shall be
included in the current profit and loss.
(2) Fixed assets depreciation
Fixed assets are depreciated under the straight-line method. The depreciation rate is determined
according to the category of assets, the useful life and the expected residual rate. If the
components of the fixed assets have different useful lives or provide the economic benefits in a
different way, then different depreciation rate or method shall be applied and the depreciation of
the components shall be calculated separately.
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Fixed assets acquired under financial leasing is depreciated over the useful life if it is reasonably
certain that the ownership of the leased assets will be acquired upon expiry of lease, or over the
shorter of lease term and useful life if it is not reasonably certain that the ownership of the leased
assets will be acquired upon expiry of lease.
Details of classification, depreciation period, residual value rate and annual depreciation rate are
as follows:
Depreciation Residual Value Depreciation Rate
Category Depreciation method
Period Rate (%) (%)
Plants and Buildings straight line method 10-45 years 0.00 2.22-10.00
Machinery straight line method 10-28 years 3.00 3.46-9.70
Transportation and
straight line method 8-22 years 3.00 4.41-12.13
other equipment
(3) Disposal of fixed assets
When a fixed asset is disposed, or it is expected that no economic benefits will be generated
through use or disposal, the recognition of fixed asset shall be de terminated. The amount of
disposal income of fixed assets raising from sell, transfer, scrapping or damage shall be included
in the current profit and loss after deducting its book value and related taxes.
16. Construction in progress
Construction in progress is measured at the actual cost incurred. The actual cost includes
construction costs, installation costs, borrowing costs that meet the capitalization conditions, and
other necessary expenditures incurred before the construction in progress reaches its intended use
status.
Construction in progress is transferred to fixed asset when it has reached its working condition for
its intended use and depreciation will be accrued from the next month.
17. Borrowing costs
(1) Principle of the recognition of capitalized borrowing costs
Where the borrowing costs incurred to an enterprise can be directly attributable to the acquisition
and construction or production of assets eligible for capitalization, it shall be capitalized and
recorded into the costs of relevant assets. Other borrowing costs shall be recognized as expenses
on the basis of the actual amount incurred, and shall be recorded into the current profits and
losses.
Assets eligible for capitalization refer to the fixed assets, investment property, inventories and
other assets, of which the acquisition and construction or production may take quite a long time to
get ready for its intended use or for sale.
(2) The capitalization period of borrowing costs
The capitalization period shall refer to the period from the commencement to the cessation of
capitalization of the borrowing costs, excluding the period of suspension of capitalization of the
borrowing costs.
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The borrowing costs shall not be capitalized unless they simultaneously meet the following
requirements:
1) The asset disbursements have already incurred, which shall include cash, transferred
non-cash assets or interest bearing debts paid for the acquisition and construction or
production activities for preparing assets eligible for capitalization;
2) The borrowing costs has already incurred; and
3) The acquisition and construction or production activities which are necessary to prepare the
asset for its intended use or sale have already started.
When the qualified asset under acquisition and construction or production is ready for the intended
use or sale, the capitalization of the borrowing costs shall be ceased.
(3) The suspension of capitalization of borrowing costs
Where the acquisition and construction or production of a qualified asset is interrupted abnormally
and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs
shall be suspended. If the interruption is a necessary step for making the qualified asset under
acquisition and construction or production ready for the intended use or sale, the capitalization of
the borrowing costs shall continue. The borrowing costs incurred during such period shall be
recognized as expenses, and shall be recorded into the profits and losses of the current period, till
the acquisition and construction or production of the asset restarts.
(4) Method of calculating the capitalization rate and capitalized amount of borrowing costs
For interest expense (minus the income of interests earned on the unused borrowing loans as a
deposit in the bank or investment income earned on the loan as a temporary investment) and the
ancillary expense incurred to a specifically borrowed loan, those incurred before a qualified asset
under acquisition, construction or production is ready for the intended use or sale shall be
capitalized at the incurred amount when they are incurred, and shall be recorded into the costs of
the asset eligible for capitalization.
The Company shall calculate and determine the to-be-capitalized number of interests on the
general borrowing by multiplying the weighted average asset disbursement of the part of the
accumulative asset disbursements minus the general borrowing by the capitalization rate of the
general borrowing used. The capitalization rate shall be calculated and determined in light of the
weighted average interest rate of the general borrowing.
During the capitalization period, the exchange difference between the principal and interest of the
foreign currency special loan is capitalized and included in the cost of the assets that meet the
capitalization conditions. Exchange differences arising from the principal and interest of foreign
currency borrowings other than foreign currency special borrowings are included in the current
profits and losses.
18. Intangible Assets
(1) Measurement of Intangible Assets
1) Initial measurement is based on cost upon acquisition
The cost of an intangible asset on acquisition include the purchase price, relevant taxes and other
necessary disbursements which may be directly attributable to bringing the intangible asset to the
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conditions for the expected purpose.
2) Subsequent Measurement
The Company shall analyze and judge the beneficial period of intangible assets upon acquisition.
Intangible assets with finite beneficial period shall be amortized under the straight-line method
during the period when the intangible asset can bring economic benefits to the enterprise. If it is
unable to estimate the beneficial period of the intangible asset, it shall be regarded as an intangible
asset with uncertain service life and shall not be amortized.
(2) Estimated useful lives of intangible assets with limited useful lives
Item Estimated useful life Criteria
Land use right 50 years Land use right certificate
(3) Determination of intangible assets with uncertain useful lives
As at the balance sheet date, the Company has no intangible assets with uncertain useful lives.
(4) Classification criteria for internal research phase and development phase
The expenditures for its internal research and development projects of an enterprise shall be
classified into research expenditures and development expenditures.
Research phase refers to the phase of creative and planned investigation to acquire and study to
acquire and understand new scientific or technological knowledge.
Development phase refers to the phase during which the result of research phase or other
knowledge is applied into certain projects or designs for the manufacturing of new or substantially
improved material, device and product before commercial manufacturing and use.
19. Impairment of long-term assets
For long-term assets such as long-term equity investments, Investment property under the cost
model, fixed assets, construction in progress, intangible assets with limited useful lives etc., the
Company shall perform impairment tests at the period end if there is clear indication of
impairment. If the recoverable amounts of long-term assets are less than their carrying amounts,
the carrying amounts of the assets shall be written down to their recoverable amounts. The
write-downs are recognized as impairment losses and charged to current profit and loss. The
recoverable amounts of long-term assets are the higher of their fair values less costs to sell and the
present values of the future cash flows expected to be derived from the assets. The Company shall
estimate its recoverable amount on an individual basis. Where it is difficult to do so, it shall
determine the recoverable amount of the assets on the basis of the asset group to which the asset
belongs. The term "assets group” refers to a minimum combination of assets by which the cash
flows could be generated independently.
The goodwill, intangible assets with uncertain useful life and intangible assets not meeting the
expected condition for use they shall be subject to an impairment test at least at the end of each
year.
When the Company makes an impairment test of assets, it shall, as of the purchasing day,
apportion the carrying value of the business reputation formed by merger of enterprises to the
relevant asset groups by a reasonable method. Where it is difficult to do so, it shall be apportioned
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to the relevant combinations of asset groups. When apportioning the carrying value of the business
reputation to the relevant asset groups or combinations of asset groups, it shall be apportioned on
the basis of the proportion of the fair value of each asset group or combination of asset groups to
the total fair value of the relevant asset groups or combinations of asset groups. Where it is
difficult to measure the fair value reliably, it shall be apportioned on the basis of the proportion of
the carrying value of each asset group or combination of asset groups to the total carrying value of
the relevant asset groups or combinations of asset groups.
When making an impairment test on the relevant asset groups or combination of asset groups
containing business reputation, if any evidence shows that the impairment of asset groups or
combinations of asset groups is possible, the Company shall first make an impairment test on the
asset groups or combinations of asset groups not containing business reputation, calculate the
recoverable amount, compare it with the relevant carrying value and recognize the corresponding
impairment loss. Then the Company shall make an impairment test of the asset groups or
combinations of asset groups containing business reputation, and compare the carrying value of
these asset groups or combinations of asset groups (including the carrying value of the business
reputation apportioned thereto) with the recoverable amount. Where the recoverable amount of the
relevant assets or combinations of the asset groups is lower than the carrying value thereof, it shall
recognize the impairment loss of the business reputation.
Impairment losses on long-term assets shall not be reversed in subsequent accounting periods once
recognized.
20. Long-term deferred expense
The long-term deferred expense refers to the expenses incurred but shall be borne by current and
subsequent accounting period, which is more than one year.
The long-term deferred expense shall be amortized over its beneficiary period evenly.
21. Contract liability
When either party to a contract has performed, the Company shall present the contract in the
statement of financial position as a contract asset or a contract liability, depending on the
relationship between the Company’s performance and the customer’s payment. If a customer pays
consideration, or the Company has a right to an amount of consideration before the Company
transfers a good or service to the customer, the Company shall present the contract as a contract
liability. Contract assets and contract liabilities under the same contract are disclosed in net
amount.
22. Employee benefits
(1) Accounting treatment for short employee benefit
The Company shall recognize, in the accounting period in which an employee provides service,
actually occurred short-term employee benefits as a liability, with a corresponding charge to the
profit or loss or cost of an asset for the current period.
Payments made by an enterprise of social security contributions for employees, payments of
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
housing funds, and union running costs employee education costs provided in accordance with
relevant requirements shall, in the accounting period in which employees provide services, be
calculated according to prescribed bases and percentages in determining the amount of employee
benefits.
The employee welfare expenses incurred by the company are included in the current profit and
loss or related asset costs based on the actual amount when they actually occur. Among them,
non-monetary benefits are measured at fair value.
(2) Accounting treatment of post-employment benefits
1) Defined contribution plan
The Company shall recognize, in the accounting period in which an employee provides service,
pension fund and unemployment fund for employees as a liability according to the local
government regulations. The amount shall be calculated according to local prescribed bases and
percentages in determining the amount of employee benefits, with a corresponding charge to the
profit or loss or cost of an asset for the current period.
2) Defined benefit plan
None.
(3) Accounting treatment of termination benefits
The Company shall recognize an employee benefits liability for termination benefits, with a
corresponding charge to the profit or loss for the current period, at the earlier of the following
dates: when the Company cannot unilaterally withdraw the offer of termination benefits because
of an employment termination plan or a curtailment proposal; or when the Company recognizes
costs or expenses related to a restructuring that involves the payment of termination benefits.
23. Estimated liabilities
The obligation pertinent to a contingency shall be recognized as an estimated liability when the
following conditions are satisfied simultaneously:
1) That obligation is a current obligation of the enterprise;
2) It is likely to cause any economic benefit to flow out of the enterprise as a result of
performance of the obligation; and
3) The amount of the obligation can be measured in a reliable way.
The estimated debts shall be initially measured in accordance with the best estimate of the
necessary expenses for the performance of the current obligation.
To determine the best estimate, an enterprise shall take into full consideration of the risks,
uncertainty, time value of money, and other factors pertinent to the Contingencies. If the time
value of money is of great significance, the best estimate shall be determined after discounting the
relevant future outflow of cash.
The best estimate shall be conducted in accordance with the following situations, respectively:
If there is a continuous range for the necessary expenses and if all the outcomes within this range
are equally likely to occur, the best estimate shall be determined in accordance with the average
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
estimate within the range, that is, the average of the upper and lower limit.
If there is not a sequent range for the necessary expenses and if the outcomes within this range are
not equally likely to occur, the best estimate shall be determined as follows:
1) If the Contingencies concern a single item, it shall be determined in the light of the most
likely outcome.
2) If the Contingencies concern two or more items, the best estimate shall be calculated and
determined in accordance with all possible outcomes and the relevant probabilities.
When all or some of the expenses necessary for the liquidation of an estimated debts of an
enterprise is expected to be compensated by a third party, the compensation shall be separately
recognized as an asset only when it is virtually certain that the reimbursement will be obtained.
The amount recognized for the reimbursement shall not exceed the book value of the estimated
debts.
The company reviews the book value of the estimated liabilities on the balance sheet date. If there
is conclusive evidence that the book value does not reflect the current best estimate, the book
value will be adjusted according to the current best estimate.
24. Revenue
(1) The general principle of revenue recognition and measurement
The company shall recognize revenue when (or as) the company satisfies a performance
obligation when (or as) the customer obtains control of a promised good or service. Control of a
promised good or service refers to the ability to direct the use of, and obtain substantially all of the
remaining benefits from it.
If the contract contains two or more performance obligations, the company shall allocate the
transaction price to each individual performance obligation based on the relative proportion of the
stand-alone selling price of the goods or services promised by each individual performance
obligation on the date of the contract. The company measures revenue based on the transaction
price allocated to each individual performance obligation.
The transaction price is the amount of consideration to which the company expects to be entitled
in exchange for transferring promised goods or services to a customer, excluding amounts
collected on behalf of third parties or amounts expected to be returned to customers. The company
shall consider the terms of the contract and its customary business practices to determine the
transaction price. When determining the transaction price, the company shall consider the effects
of all of the following: variable consideration, the existence of a significant financing component
in the contract, non-cash consideration, and consideration payable to a customer. The company
determines the transaction price that includes variable consideration at an amount that does not
exceed the amount of accumulated recognized revenue that is unlikely to be materially reversed
when the relevant uncertainty is eliminated. If there is a significant financing component in the
contract, the company shall recognize revenue at an amount that reflects the price that a customer
would have paid for the promised goods or services if the customer had paid cash for those goods
or services when (or as) they transfer to the customer, and use the effective interest method to
amortize the difference between the transaction price and the contract consideration during the
contract period. If the interval between the transfer of control and the payment by the customer
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
does not exceed one year, the financing component will not be considered.
The company transfers control of a good or service over time and, therefore, satisfies a
performance obligation and recognizes revenue over time, if one of the following criteria is met.
Otherwise, the company satisfies the performance obligation at a point in time.
1) the customer simultaneously receives and consumes the benefits provided by the
company’s performance as the company performs;
2) the company’s performance creates or enhances an asset that the customer controls as the
asset is created or enhanced; or
3) the company’s performance does not create an asset with an alternative use to the company
and the company has an enforceable right to payment for performance completed to date.
The company shall recognize revenue over time by measuring the progress towards complete
satisfaction of that performance obligation, except where the performance progress cannot be
reasonably determined. The company considers the nature of the goods or services and adopts the
output method or the input method to determine the progress of performance. Where the
performance progress cannot be reasonable determined, but the company expects to recover the
costs incurred in satisfying the performance obligation, the company shall recognize revenue only
to the extent of the costs incurred until such time that it can reasonably measure the outcome of
the performance obligation.
For performance obligations satisfied at a certain point in time, the company shall recognize
revenue at the point when the customer obtains control of the relevant goods or services. To
determine the point in time at which a customer obtains control of a promised goods or services,
the company shall consider requirements as follows:
1) The company has a present right to payment for the promised goods or services and the
customer is presently obliged to pay for that;
2) The company has transferred the legal title of the goods to the customer, that is, the
customer has the legal title to the goods;
3) The company has transferred physical possession of the goods to the customer, that is, the
customer has taken possession of the goods;
4) The company has transferred the significant risks and rewards of ownership of the goods to
the customer, that is, the customer has the significant risks and rewards of ownership of the
goods;
5) The customer has accepted the promised goods or services.
(2) The specific criteria of revenue recognition and measurement
Commodity sales contracts between companies and customers usually only include performance
obligations for the transfer of steel and other commodities or service. This type of performance
obligation is a performance obligation performed at a certain point in time. The company
recognizes revenue when the customer obtains control of the relevant goods or services. When
judging whether the customer has obtained control of goods or services, the company considers
the following signs:
The company obtains the present right of collection of receivables, the legal ownership of the
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
goods is transferred to the customer, the physical assets of the goods are transferred to the
customer, the company transfers the main risks and rewards of the ownership of the goods to the
customer, and the customer has accepted the goods.
25. Contract costs
Contract costs include costs to fulfill a contract and incremental costs of obtaining a contract.
If the costs incurred in fulfilling a contract with a customer are not within the scope of another
Standard, for example, Inventories, Property, Plant and Equipment or Intangible Assets, the
company shall recognize an asset from the costs incurred to fulfil a contract only if those costs
meet all of the following criteria:
(a) the costs relate directly to a contract or to an expected contract;
(b) the costs generate or enhance resources of the Company that will be used in satisfying
performance obligations in the future; and
(c) the costs are expected to be recovered.
The company shall recognize as an asset the incremental costs of obtaining a contract with a
customer if the company expects to recover those costs.
An asset recognized in accordance with contract costs shall be amortized in consistent with the
transfer to the customer of the goods or services to which the asset relates. The company may
recognize the incremental costs of obtaining a contract as an expense when incurred if the
amortization period of the asset is one year or less.
The company shall recognize an impairment loss in profit or loss to the extent that the carrying
amount of an asset related to contract assets exceeds:
(a) the remaining amount of consideration that the company expects to receive in exchange
for the goods or services to which the asset relates; less
(b) the costs that relate directly to providing those goods or services and that have not been
recognized as expenses.
The company shall recognize in profit or loss a reversal of some or all of an impairment loss
previously recognized when the impairment conditions no longer exist or have improved. The
increased carrying amount of the asset shall not exceed the carrying amount that if no impairment
loss had been recognized previously.
26. Government Subsidies
(1) Types
A government subsidy means the monetary or non-monetary assets obtained free of charge by the
Company from the government. Government subsidies consist of the government subsidies
pertinent to assets and government subsidies pertinent to income.
Government subsidies related to assets are government subsidies whose primary condition is that
an entity qualifying for them should purchase, construct or otherwise acquire long-term assets.
The government subsidies related to incomes refers to government subsidies other than those
related to assets.
The standard of the Company recognizing the government subsidies related to assets is: an entity
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
qualifying for them should purchase, construct or otherwise acquire long-term assets.
The standard of the Company recognizing the government subsidies related to income is: In
addition to government subsidies related to assets, government subsidies that have been clearly
targeted for subsidies.
For the the government subsidy which does not specify the subsidy object in government
document will be classified as asset-related or income-related judgment basis: if a long-term asset
can be formed, the government subsidy part corresponding to the asset value shall be regarded as
an asset-related subsidy, the rest are regarded as government subsidies related to income; if it is
difficult to distinguish, the whole government subsidies are regarded as government subsidies
related to income.
(2) Recognition
Government subsidies related to assets are recognized when it actually received, and transferred
the deferred income to the current profit and loss according to the estimated using period of the
long-term assets from when the long-term assets are available.
Government subsidies related to income are recognized when it actually received. Which to
compensate the relevant expenses or losses in subsequent periods shall be included in the current
non-operating income during the period when the relevant expenses are recognized. Which to
compensate expenses or losses already incurred shall be recognized in current non-operating
income.
(3) Accounting treatment
Government subsidies related to assets shall be recognized by deducting the subsidies at the caring
amount of the assets or recognized as deferred income. Subsidies that recognized as deferred
income shall be recognized in profit or loss on a systematic basis over the periods during the
useful lives of the relevant assets (Subsidies related to daily activities should be recorded in Other
Income. Subsidies that unrelated to daily activities should be recorded in Non-operating Income).
The government subsidies related to incomes to compensate future expenses, shall be recognized
as deferred income and transferred to current profit or loss (Subsidies related to daily activities
should be recorded in Other Income. Subsidies that unrelated to daily activities should be recorded
in Non-operating Income) in the period during which the expenses compensation is recognized or
deduct relevant cost or loss. Government subsidies to compensate expenses or losses already
incurred shall be recognized in current profit and loss (Subsidies related to daily activities should
be recorded in Other Income. Subsidies unrelated to daily activities should be recorded in
Non-operating Income) or deduct relevant cost or loss.
The policy discount loans obtained by the company are divided into the following two situations
and are separately accounted for:
1) If the government allocates discounted funds to the loan bank and the loan bank provides
loans to the company at a policy preferential interest rate, the company will take the actual
amount of the loan received as the entry value of the loan and calculate the relevant borrowing
costs based on the loan principal and the policy preferential interest rate.
2) If the government directly allocates the discounted funds to the company, the company will
offset the relevant borrowing costs with the corresponding discounts.
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27. Deferred tax assets and deferred tax liabilities
Income tax includes current income tax and deferred income tax. Except for income tax arising
from business mergers and transactions or events that are directly included in owner's equity
(including other comprehensive income), the company will include current income tax and
deferred income tax in current profit and loss.
Deferred income tax assets and deferred income tax liabilities are calculated and confirmed based
on the difference (temporary difference) between the tax base of assets and liabilities and their
book value.
An enterprise shall recognize the deferred income tax assets arising from a deductible temporary
difference to the extent of the amount of the taxable income which it is most likely to be obtained
and which can be deducted from the deductible temporary difference. As for any deductible loss or
tax deduction that can be carried forward to the next year, the corresponding deferred income tax
assets shall be determined to the extent that the amount of future taxable income to be offset by
the deductible loss or tax deduction to be likely obtained.
All taxable temporary differences shall be recognized as deferred tax liabilities with certain
limited exceptions.
Exceptions when deferred tax assets and deferred tax liabilities are not recognized include: initial
recognition of goodwill; initial recognition of an asset or liability in a transaction or event that is
not a business combination and at the time of the transaction, affects neither accounting profit nor
taxable profit (tax loss).
For taxable temporary differences related to investments in subsidiaries, associates and joint
ventures, deferred income tax liabilities are recognized, unless the company can control the timing
of the reversal of the temporary differences and the temporary differences are likely not to be
transferred back in the foreseeable future. For deductible temporary differences related to
investments in subsidiaries, associates and joint ventures, when the temporary differences are
likely to be reversed in the foreseeable future and are likely to be used to deduct the taxable
income of deductible temporary differences in the future, income tax assets are recognized.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities are
measured at the applicable tax rate during the period when the relevant assets are expected to be
recovered or the relevant liabilities are expected to be recovered in accordance with the provisions
of the tax law.
On the balance sheet date, the company reviews the book value of deferred income tax assets. If it
is probable that sufficient taxable income cannot be obtained in the future to offset the benefits of
deferred income tax assets, the book value of the deferred income tax assets shall be written down.
When it is possible to obtain sufficient taxable income, the reduced amount shall be reversed.
When the Company has the statutory right to offset and intend to offset or obtain assets and pay
off liabilities at the same time, the current income tax assets and current income tax liabilities are
presented at the net amount after offsetting.
An entity shall offset deferred tax assets and deferred tax liabilities if, and only if: (a) the entity
has a legally enforceable right to set off current tax assets against current tax liabilities; and (b) the
deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same
taxation authority on either:(i) the same taxable entity; or (ii) different taxable entities which
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and
settle the liabilities simultaneously, in each future period in which significant amounts of deferred
tax liabilities or assets are expected to be settled or recovered.
28. Leases
A lease is a contract whereby the lessor transfers the right of usage on asset to the lessee for
consideration within a certain period of time.
On the contract commencement date, the company evaluates whether the contract is a lease or
includes a lease. If one party in the contract transfers the right to control the use of one or more
identified assets within a certain period in exchange for consideration, the contract is a lease or
includes a lease.
If the contract contains multiple separate leases at the same time, the company will split the
contract and conduct accounting treatment for each separate lease. If the contract includes both
lease and non-lease parts, the company, as the lessor and lessee, will split the lease and non-lease
parts for accounting treatment.
For rent reductions, exemptions, deferred payments and other rental reductions directly caused by
the COVID-19 epidemic and reached on existing lease contracts, if the following conditions are
met at the same time, the company adopts a simplified method for all lease selections, and does
not evaluate whether there is a lease change. Lease classification is not reassessed:
1) The lease consideration after the concession is reduced or basically unchanged from that
before the concession. The lease consideration may be undiscounted or discounted at the
discount rate before the concession;
2) The concession is only for lease payments payable before June 30, 2022, an increase in
lease payments payable after June 30, 2022 does not affect meeting this condition, and a
decrease in lease payments payable after June 30, 2022 does not satisfy this condition;
3) The other terms and conditions of the lease have not changed significantly after taking into
account both qualitative and quantitative factors.
(1) The company as lessee
1) Right-of-use assets
On the opening date of the lease term, the Group recognizes the right to use assets for leases other
than short-term leases and low value asset leases. The right of use assets are initially measured at
cost. This cost includes:
a) Initial measurement amount of lease liabilities;
b) For the lease payment paid on or before the opening of the lease term, if there is lease
incentive, the relevant amount of lease incentive enjoyed shall be deducted;
c) Initial direct costs incurred;
d) The estimated costs incurred for dismantling and removing the leased assets, restoring the
site where the leased assets are located or restoring the leased assets to the state agreed in the
lease terms.
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Depreciation method of right of use assets the company adopts the straight-line method for
depreciation. If it can be reasonably determined that the ownership of the leased asset will be
obtained at the expiration of the lease term, the company shall accrue depreciation within the
remaining useful life of the leased asset; otherwise, the leased asset shall be depreciated within the
shorter of the lease term and the remaining useful life of the leased asset.
For the principles which company determines whether the right-of-use asset has been impaired,
please refer to Note (19) Impairment of long-term assets under “3. Significant accounting policies
and accounting estimates”.
2) Lease liabilities
At the opening of the lease term, the company recognizes the present value of the unpaid lease
payments as lease liabilities, except for short-term leases and low value asset leases. The lease
liability is initially measured at the present value of outstanding lease payments. Lease payments
include:
a) Fixed payments (including actual fixed payments), if there is a lease incentive, deduct the
relevant amount of the lease incentive;
b) Variable lease payments that depend on an index or ratio;
c) The expected payment according to the residual value of the guarantee provided by the
company;
d) The exercise price of the purchase option, provided that the company is reasonably certain
that the option will be exercised;
e) Payments for exercising the option to terminate the lease, provided that the lease term
reflects that the company will exercise the option to terminate the lease.
The company uses the interest rate implicit in the lease as the discount rate, but if the interest rate
implicit in the lease cannot be reasonably determined, the company's incremental borrowing rate
is used as the discount rate.
The company calculates the interest expense of the lease liability in each period of the lease term
according to the fixed periodic interest rate, and includes it into the current profit and loss or the
cost of related assets.
Variable lease payments that are not included in the measurement of lease liabilities are included
in the current profit and loss or the cost of related assets when they are actually incurred.
After the commencement date of the lease term, the Company shall re-measure the lease liabilities
and adjust the corresponding right-of-use assets under the following circumstances. If the book
value of the right-of-use assets has been reduced to zero, but the lease liabilities still need to be
further reduced, the difference is included in the current profit and loss:
a) When there is a change in the evaluation results of the purchase option, lease renewal
option or termination option, or the actual exercise of the aforementioned options is
inconsistent with the original evaluation result, the Company shall calculate the lease
payment amount after the change and the revised discounted value. Remeasure the lease
liability at the present value of the rate calculation;
b) When the actual fixed payment changes, the estimated payable amount of the residual
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
value guarantee changes, or the index or ratio used to determine the lease payment changes,
the company calculates the present value based on the changed lease payment and the
original discount rate Remeasure the lease liability. However, where changes in lease
payments result from changes in floating interest rates, a revised discount rate is used to
calculate the present value.
3) Short-term leases and low-value asset leases
The company chooses not to recognize right-of-use assets and lease liabilities for short-term leases
and low-value asset leases, and includes the relevant lease payments in the current profit and loss
or related asset costs on a straight-line basis over each period of the lease term. Short-term leases
refer to leases with a lease term of not more than 12 months and excluding purchase options on the
commencement date of the lease term. A low-value asset lease refers to a lease with a lower value
when a single leased asset is a brand-new asset. If the company subleases or expects to sublease
the leased assets, the original lease is not a low-value asset lease.
4) Lease change
If the lease changes and the following conditions are met at the same time, the company will
account for the lease change as a separate lease:
a) The lease modification expands the scope of the lease by adding the right to use one or
more leased assets;
b) The increased consideration is equivalent to the amount adjusted by the individual price
of the expanded part of the lease scope according to the contract.
If the lease change is not accounted for as a separate lease, on the effective date of the lease
change, the company re-allocates the consideration of the contract after the change, re-determines
the lease term, and calculates the current value based on the lease payment after the change and
the revised discount rate. value to remeasure the lease liability.
If the lease change leads to the narrowing of the lease scope or the shortening of the lease term,
the company will reduce the book value of the right-of-use asset accordingly, and include the
relevant gains or losses on partial or complete termination of the lease into the current profit and
loss. If other lease changes result in re-measurement of lease liabilities, the Company adjusts the
book value of the right-of-use asset accordingly.
5) Rent concessions related to COVID-19
For those adopting the simplified method of rent reduction related to the new crown pneumonia
epidemic, the company does not assess whether there is a lease change, and continues to calculate
the interest expense of the lease liability at the same discount rate as before the reduction and
include it in the current profit and loss, and continue to use the same discount rate as before the
reduction. The right-of-use asset is depreciated using the same method as before. In the event of
rent reduction or exemption, the company will treat the reduced rent as the variable lease payment
amount. When the original rent payment obligation is relieved by reaching a concession
agreement, the discounted amount at the undiscounted or pre-discount discount rate will be used
to offset the cost of relevant assets. or expenses, and adjust the lease liabilities accordingly; if the
rent payment is delayed, the company offsets the lease liabilities recognized in the previous period
when the actual payment is made.
44
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
For short-term leases and low-value asset leases, the company continues to include the original
contract rent in the cost or expense of the relevant assets in the same way as before the concession.
In the event of rent reduction or exemption, the company will take the reduced rent as the variable
lease payment, and write down the relevant asset costs or expenses during the reduction or
exemption period; if the rent payment is delayed, the company will recognize the rent payable as
payable during the original payment period. When the actual payment is made, the payables
recognized in the previous period are offset.
(2) The company as lessor
On the lease commencement date, the Company classifies leases into finance leases and operating
leases. A financial lease is a lease that essentially transfers almost all the risks and rewards
associated with the ownership of the leased asset, regardless of whether the ownership is
ultimately transferred. Operating leases refer to leases other than finance leases. When the
company acts as a sublease lessor, it classifies the sublease based on the right-of-use asset arising
from the original lease.
1) Accounting treatment of operating leases
Lease receipts from operating leases are recognized as rental income on a straight-line basis over
each period of the lease term. The Company capitalizes the initial direct expenses incurred in
relation to operating leases, and is amortized and included in the current profit and loss on the
same basis as the rental income is recognized during the lease term. Variable lease payments not
included in lease receipts are included in profit or loss for the period when they are actually
incurred. If the operating lease is changed, the company will account for it as a new lease from the
effective date of the change, and the advance receipts or lease receivables related to the lease
before the change are regarded as the receipts of the new lease.
2) Accounting treatment of financial lease
On the lease commencement date, the Company recognizes the finance lease receivables for the
finance lease and derecognizes the finance lease assets. When the Company initially measures the
finance lease receivables, the net investment in the lease is regarded as the entry value of the
finance lease receivables. The net lease investment is the sum of the unguaranteed residual value
and the present value of the lease receipts not yet received at the commencement date of the lease
term, discounted at the interest rate implicit in the lease.
The company calculates and recognizes the interest income in each period of the lease period
according to the fixed periodic interest rate. For the derecognition and impairment of finance lease
receivables, please refer to Note (10) Financial instruments under “3. Significant accounting
policies and accounting estimates”.
Variable lease payments that are not included in the net lease investment measurement are
included in the current profit and loss when they are actually incurred.
If the financial lease is changed and the following conditions are met at the same time, the
company will account for the change as a separate lease:
a) The change expands the scope of the lease by increasing the right to use one or more of
the leased assets;
b) The increased consideration is equivalent to the stand-alone price of the expanded lease
area, adjusted for the contract.
45
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
c) If the modification of a financial lease is not accounted for as a separate lease, the
company shall deal with the modified lease under the following circumstances:
d) If the change takes effect on the lease inception date, the lease will be classified as an
operating lease, and the company will account for it as a new lease from the effective date of
the lease change, and use the net lease investment before the effective date of the lease
change as the book value of the leased asset;
e) If the change takes effect on the lease commencement date, the lease will be classified as a
financial lease, and the Company will conduct accounting treatment in accordance with the
policy on revising or renegotiating contracts in Note (10) Financial instruments under “3.
Significant accounting policies and accounting estimates”.
3) Rent concessions related to COVID-19
For operating leases that adopt the simplified method of rent reduction related to the new crown
pneumonia epidemic, the company continues to recognize the original contract rent as rental
income in the same way as before the reduction; if rent reduction or exemption occurs, the
company treats the reduced rent as a variable lease The payment amount shall be offset from the
lease income during the reduction or exemption period; if the rental collection is delayed, the
company shall recognize the receivable rent as an account receivable during the original collection
period, and offset the receivable recognized in the previous period when it is actually received.
For financial leases that adopt the simplified method of rent reduction related to the new crown
pneumonia epidemic, the company continues to calculate the interest at the same discount rate as
before the reduction and recognize it as lease income. In the event of rent reduction or exemption,
the company will treat the reduced rent as variable lease payments, and when a concession
agreement is reached, etc. to waive the right to receive the original rent, the discounted amount at
the undiscounted or pre-discount discount rate will be used to offset the originally recognized
amount. For lease income, the part that is not enough to be written off is included in investment
income, and the finance lease receivables are adjusted accordingly; if the rent is delayed, the
company offsets the finance lease receivables recognized in the previous period when it is actually
received.
29. Discontinuing operation
Discontinuing operation is a component that has been disposed or classified as held for sale by the
Company, and can be distinguished separately in operating and preparing financial statements
when one of the following conditions is met:
1) The component stands for an independent main business or a major business area;
2) The component is a part of disposal plan of an independent main business or a major
business area;
3) The component is a subsidiary which is acquired only for sale again.
The profit and loss from continuing operations and the profit and loss from discontinued
operations are separately listed in the income statement. Operational gains and losses such as
impairment losses and reversal amount and disposal gains and losses from discontinued operations
46
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
are reported as discontinued operation gains and losses. For the discontinued operations reported
in the current period, the Company adjusts the information previously disclosed as continuing
operations profits and losses in the current financial statements as the discontinued operations
profits and losses for the comparable accounting period.
30. Major accounting estimates and judgments
When preparing financial statements, the Company's management needs to use estimates and
assumptions, which will affect the application of accounting policies and the amount of assets,
liabilities, income and expenses. Actual conditions may differ from these estimates. The
management of the company continuously evaluates the judgment of key assumptions and
uncertainties involved in the estimation, and the impact of changes in accounting estimates will be
recognized in the current and future periods.
The main uncertainties in the estimated amount are as follows:
(1) Measurement of expected credit losses
The company calculates the expected credit loss through the default risk exposure and the
expected credit loss rate, and determines the expected credit loss rate based on the default
probability and the default loss rate. When determining the expected credit loss rate, the company
uses internal historical credit loss experience and other data, and adjusts the historical data in
combination with current conditions and forward-looking information. When considering
forward-looking information, the indicators used by the Company include the risk of economic
downturn, the expected increase in unemployment rate, changes in the external market
environment, technological environment and customer conditions. The Company regularly
monitors and reviews assumptions related to the calculation of expected credit losses.
(2) Inventory Impairment
As mentioned in note (11) Inventory under “3 Significant accounting policies and accounting
estimates”, the Company regularly estimates the net realizable value of the inventory, and
recognizes the difference in inventory cost higher than the net realizable value. When estimating
the net realizable value of inventory, the Company considers the purpose of holding the inventory
and uses the available information as the basis for estimation, including the market price of the
inventory and the Company's past operating costs. The actual selling price, completion cost, sales
expenses and taxes of the inventory may change according to changes in market sales conditions,
production technology, or the actual use of the inventory. Therefore, the amount of inventory
depreciation reserve may change according to the above reasons. Adjustments to the inventory
impairment will affect the current profit and loss.
(3) Impairment of other assets except inventory and financial assets
As mentioned in note (19) Long-term Asset Impairment under “3 Significant accounting policies
and accounting estimates”, the company performs an impairment assessment on assets other than
inventory and financial assets on the balance sheet date to determine whether the recoverable
amount of the asset has fallen to a lower level than its book value. If the situation shows that the
book value of the long-term assets may not be fully recovered, the relevant assets will be deemed
to be impaired and the impairment loss will be recognized accordingly.
The recoverable amount is the higher of the net value of the fair value of the asset (or asset group)
47
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
minus the disposal expenses and the present value of the asset (or asset group) 's expected future
cash flow. Because the Company cannot reliably obtain the public market price of assets (or asset
groups), and cannot reliably and accurately estimate the fair value of assets. Therefore, the
Company regards the present value of the expected future cash flow as the recoverable amount.
When estimating the present value of future cash flows, it is necessary to make a significant
judgment on the output, selling price, related operating costs of the products produced by the asset
(or asset group), and the discount rate used in calculating the present value. The Company will use
all available relevant information when estimating the recoverable amount, including the
prediction of output, selling price and related operating costs based on reasonable and supportable
assumptions.
(4) Depreciation and amortization of assets such as fixed assets and intangible assets
As described in note 16 Fixed Assets and note 19 Intangible Assets, the company shall accrue
depreciation for the fixed assets and amortization for intangible assets within the useful life after
considering their residual value. The company regularly reviews the useful life of related assets to
determine the amount of depreciation and amortization expenses to be included in each reporting
period. The useful life of assets is determined by the company based on past experience with
similar assets and in combination with anticipated technological changes. If the previous estimates
change significantly, the depreciation and amortization expenses will be adjusted in the future.
(5) Deferred tax assets
When it is estimated that sufficient taxable income can be obtained in the future to use the
unrecovered tax losses and deductible temporary differences, the relevant deferred tax assets are
calculated and confirmed on the basis of the applicable income tax rate during the period when the
asset is expected to be recovered and the amount of taxable income is limited to deductible tax
losses and deductible temporary differences likely to be obtained by the Company. The Company
needs to use judgment to estimate the time and amount of future taxable income, and make
reasonable estimates and judgments on the future applicable income tax rate according to the
current tax policy and other related policies to determine the deferred tax assets that should be
recognized. If the time and amount of profits actually generated in the future period or the actual
applicable income tax rate are different from the management's estimate, the difference will have
an impact on the amount of deferred tax assets.
31. Change of significant accounting policy and accounting estimate
None.
IV. Taxes
1. Major type of taxes and corresponding tax rates
Tax Taxation Method Tax Rate
The balance of output VAT calculated
based on product sales and taxable
Value-added Tax (VAT) services revenue in accordance with the 6%, 9%, 13%
tax laws after subtracting the deductible
input VAT of the period
48
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
City maintenance and construction tax Based on VAT actually paid 7%, 5%
Enterprise income tax Based on taxable profit 25%
2. Tax Preference
None.
V. Notes to the consolidated financial statements
1. Cash at bank and on hand
Items 30 June 2022 31 December 2021
Cash on hand 1,232.53 24,334.93
Cash at bank 4,750,472,065.98 6,299,074,728.55
Other monetary funds 54,897,399.20 2,531,996,674.37
Total 4,805,370,697.71 8,831,095,737.85
Of which: the total amount of restricted
54,897,399.20 2,531,996,674.37
monetary funds
The details of restricted funds resulted from mortgage, pledge or freezing, restrictions on
withdrawals due to centralized management of funds, and monetary funds abroad which restricted
from repatriation are as follows:
Items 30 June 2022 31 December 2021
Margin for bank acceptance bill 52,952,399.20 1,492,236,674.37
Margin for letter of credit 125,000,000.00
Time deposit or notice deposit for
1,185,000.00 174,000,000.00
guarantee
Loan deposit 760,000.00 760,000.00
Restricted deposit 740,000,000.00
Total 54,897,399.20 2,531,996,674.37
2. Notes receivable
(1) Notes receivable presented by category
Items 30 June 2022 31 December 2021
Commercial acceptance bill 141,318,446.72 1,540,482,182.07
Total 141,318,446.72 1,540,482,182.07
3. Accounts receivable
(1) Accounts receivable presented by aging analysis
Items 20211231 20201231
49
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Within 1 year (inclusive) 279,779,976.34 256,620,123.38
1-2 years (inclusive) 33,111,831.89 6,224,788.02
2-3 years (inclusive) 6,224,788.02 57,059,913.27
Over 3 years 482,667,477.68 427,997,121.96
Sub-total 801,784,073.93 747,901,946.63
Less: Provision for bad debts 493,896,723.85 491,051,163.92
Total 307,887,350.08 256,850,782.71
(2) Accounts receivable presented by bad debt accrued method
30 June 2022
Items Carrying amount Provision for bad debts
Percentage Bad debts Book value
Amount Amount
(%) ratio (%)
Provision for bad debts
352,985,418.30 44.02 352,985,418.30 100.00
individually
Provision for bad debts
448,798,655.63 55.98 140,911,305.55 31.40 307,887,350.08
based on portfolio
Including:
Portfolio 1: Aging
448,798,655.63 60.42 140,911,305.55 31.40 307,887,350.08
portfolio
Total 801,784,073.93 100.00 493,896,723.85 61.60 307,887,350.08
（Continued）
31 December 2021
Carrying amount Provision for bad debts
Items
Bad Book value
Percentage
Amount Amount debts
(%)
ratio (%)
Provision for bad debts
352,985,418.30 47.20 352,985,418.30 100.00
individually
Provision for bad debts
394,916,528.33 52.80 138,065,745.62 34.96 256,850,782.71
based on portfolio
Include:
Portfolio 1: Aging
394,916,528.33 52.80 138,065,745.62 34.96 256,850,782.71
portfolio
Total 747,901,946.63 100.00 491,051,163.92 65.66 256,850,782.71
30 June 2022
Items Provision for bad Bad debts
Carrying amount Reason
debts ratio (%)
Brilliance Automotive Bankruptcy
305,223,081.12 305,223,081.12 100.00
Group Holdings Co., Ltd. reorganization
Benxi Nanfen Xinhe
Shut down of
Metallurgical Furnace 47,762,337.18 47,762,337.18 100.00
Material Co., Ltd operation
Total 352,985,418.30 352,985,418.30 --
Accounts receivables tested for impairment individually:
Provision for bad debts by portfolio: Aging analysis:
50
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Portfolio accrual item: aging portfolio
30 June 2022
Items
Account Receivable Provision for bad debts Bad debt ratio （%）
Within 1 year (inclusive) 279,779,976.34 2,797,799.76 1.00
1-2 years (inclusive) 33,111,831.89 3,311,183.19 10.00
2-3 years (inclusive) 1,380,656.01 276,131.21 20.00
Over 3 years 134,526,191.39 134,526,191.39 100.00
Total 448,798,655.63 140,911,305.55
(3) The provision for bad debts accrued, reversed or recovered in the current period
The amount of bad debt provision accrued in the current period is RMB2,845,559.93.
(4) The amount of accounts receivable has been written off in the current period
None.
(5) Top five debtors at the end of period
30 June 2022
Company Percentage of total Accounts Provision for
Amount
receivable (%) bad debts
The first 305,223,081.12 38.07 305,223,081.12
The second 62,675,196.98 7.82 626,751.97
The third 60,369,509.72 7.53 603,695.10
The fourth 53,498,537.83 6.67 534,985.38
The fifth 47,762,337.18 5.96 47,762,337.18
Total 529,528,662.83 66.05 354,750,850.75
(6) Accounts receivable derecognized due to the transfer of financial assets
None.
(7) The amount of assets and liabilities formed by transferring accounts receivable and continuing
to be involved.
None.
4. Accounts receivable financing
(1) Details of accounts receivable financing
Items 30 June 2022 31 December 2021
Notes Receivable 254,184,970.37 1,530,735,647.38
Total 254,184,970.37 1,530,735,647.38
Notes: Accounts receivable financing reflects notes receivable and accounts receivable that are
measured at fair value through other comprehensive income on the balance sheet date.
(2) At the end of the period, the company has commercial bills pledged in accounts receivable
financing amount RMB 101,670,000.00.
51
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
(3) At the end of the period, the company's endorsed or discounted commercial bills in accounts
receivable financing accounting and not yet matured on the balance sheet date are as follows
Amount derecognised at Amount not yet derecognised
Item
the end of the period at the end of the period
Bank acceptance bill 6,325,995,134.20
Commercial acceptance bill
Total 6,325,995,134.20
(4) No accounts receivable financing has been transferred into accounts receivable due to failure
of drawer to perform.
5. Prepayments
(1) Prepayments presented by aging
30 June 2022 31 December 2021
Aging
Amount Percentage (%) Amount Percentage (%)
Within 1 year 1,909,662,527.08 97.89 977,541,107.55 98.31
1-2 years 35,979,071.76 1.84 16,681,487.73 1.68
2-3 years 5,263,490.34 0.27 147,750.36 0.01
Total 1,950,905,089.18 100.00 994,370,345.64 100.00
Notes: As of June 30, 2022, there were no significant prepayments over 1 year.
(2) Top five prepaid companies at the end of period
Name of the company Amount Percentage (%)
The First 1,306,446,662.94 66.97
The Second 83,751,404.19 4.29
The Third 74,983,578.22 3.84
The Fourth 69,280,603.52 3.55
The Fifth 62,165,740.17 3.19
Total 1,596,627,989.04 81.84
6. Other receivables
Items 30 June 2022 31 December 2021
Interest receivables 2,523,993.39
Other receivables 186,993,663.02 163,413,287.02
Total 186,993,663.02 165,937,280.41
(1) Interest receivable
1) Interest receivable presented by category
52
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Items 30 June 2022 31 December 2021
Deposit interest 2,523,993.39
Total 2,523,993.39
2)The company has no significant provision for overdue interest and bad debts.
(2) Other receivables
1) Other receivables disclosed by aging
Items 30 June 2022 31 December 2021
Within 1 year (inclusive) 169,638,358.70 153,188,899.24
1-2 years (inclusive) 14,458,325.67 4,959,792.25
2-3 years (inclusive) 2,033,318.60 3,778,131.84
Over 3 years 71,511,817.23 74,186,274.07
Sub-total 257,641,820.20 236,113,097.40
Less: Provision for bad debts 70,648,157.18 72,699,810.38
Total 186,993,663.02 163,413,287.02
2)Information of provision for bad debts
Stage one Stage two Stage three
Expected credit loss Expected credit loss
Bad debt provision Expectation over the Total
for the entire for the entire duration
coming 12 months
duration (no credit (credit impairment has
Credit loss
impairment) occurred)
Opening balance 526,800.70 6,305,393.56 65,867,616.12 72,699,810.38
--Transfer to the
-141,181.23 141,181.23
second stage
--Transfer to the
-755,315.57 755,315.57
third stage
Accrual for the
448,439.46 -3,872,783.16 1,372,690.50 -2,051,653.20
current period
Closing balance 834,058.93 1,818,476.06 67,995,622.19 70,648,157.18
3) Other receivables presented by nature
Nature 30 June 2022 31 December 2021
Receivable and payable 244,456,728.68 224,540,231.45
Others 13,185,091.52 11,572,865.95
Total 257,641,820.20 236,113,097.40
4) Top five debtors at the end of period
53
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Percentage of
Provision for bad
Company Nature Amount Aging total other
debts
receivables (%)
The First Temporary payment 8,009,725.95 within 1 year 3.11 80,097.26
The Second Temporary payment 2,261,360.00 over 3 years 0.88 2,261,360.00
The Third Temporary payment 1,999,979.00 within 1 year 0.78 19,999.79
The Fourth Temporary payment 1,740,000.00 over 3 years 0.68
within 1 year to
The Fifth Temporary payment 1,492,967.97 0.58 1,198,020.34
over 3 years
Total 15,504,032.92 6.03 3,559,477.39
7. Inventories
(1) Inventories presented by category
30 June 2022 31 December 2021
Items
Carrying amount Impairment Book value Carrying amount Impairment Book value
Raw material
3,425,058,786.46 26,986,533.69 3,398,072,252.77 4,730,515,761.34 26,986,533.69 4,703,529,227.65
and main material
Work in process and
1,774,106,409.43 37,312,458.81 1,736,793,950.62 2,105,832,905.07 25,390,821.52 2,080,442,083.55
semi-finished product
Finished goods 3,641,236,384.80 35,568,532.72 3,605,667,852.08 3,439,625,765.66 33,430,937.88 3,406,194,827.78
Total 8,840,401,580.69 99,867,525.22 8,740,534,055.47 10,275,974,432.07 85,808,293.09 10,190,166,138.98
(2) Provision for inventory impairment and provision for impairment of contract performance
costs
Increase Decrease
Category Opening balance Closing balance
Provision Others Revered or written-off Others
Raw material
26,986,533.69 26,986,533.69
and main material
Work in process and
25,390,821.52 25,390,821.52 37,312,458.81
semi-finished product 37,312,458.81
Finished goods 33,430,937.88 33,430,937.88 35,568,532.72
35,568,532.72
Total 85,808,293.09 58,821,759.40 99,867,525.22
72,880,991.53
(3) Descriptions on closing balance of inventories containing capitalized amount of borrowing
costs
None.
8. Other current assets
Items 30 June 2022 31 December 2021
131,062,456.78 310,939,065.10
VAT input tax
Prepaid tax 109,606,015.17 444,009,128.46
Total 240,668,471.95 754,948,193.56
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
9. Long-term equity investment
Increase/decrease
Investment Total
31 Other Declaration
Gains and Losses Other Impairment
Investees December Additional Reduced Comprehensive of Cash 30 June 2022
Recognized Equity Provision Others Ending
2021 Investment Investment Income Dividends
under the Equity Changes Balance
Adjustment or Profit
Method
Joint Venture
Zhejiang Bengang
Jingrui Steel Processing 2,981,784.07 85,455.22 3,067,239.29
Co., Ltd..
Subtotal 2,981,784.07 85,455.22 3,067,239.29
Total 2,981,784.07 85,455.22 3,067,239.29
55
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
10. Other equity instrument investments
Item 30 June 2022 31 December 2021
Equity of Suzhou Bengang Industrial Co.,
3,888,980.00 3,888,980.00
Ltd.
Equity of Zhonggang Shanghai Steel
Processing Co., Ltd.
Equity of Northeast Special Steel Group Co.,
1,037,735,849.00 1,037,735,849.00
Ltd.
Equity of Guangzhou Benpu Automobile
200,000.00 200,000.00
Panel Sales Co., Ltd.
Equity of Wuhan Bengang Yuanhong
200,000.00 200,000.00
Trading Co., Ltd.
Total 1,042,024,829.00 1,042,024,829.00
11. Fixed assets
Fixed assets and Disposal of fixed assets
Items 30 June 2022 31 December 2021
Fixed assets 24,397,788,521.52 25,480,674,048.94
Disposal of fixed assets 119,424.50
Total 24,397,907,946.02 25,480,674,048.94
(1) Details of fixed assets
Transportation
Items Houses and buildings Mechanical equipment and other Total
equipment
1. Total original
value
31 December 2021 13,244,653,376.33 49,481,748,950.04 920,958,736.87 63,647,361,063.24
Increase
in current period 14,881,999.31 12,174,332.46 11,014,765.84 38,071,097.61
Including: Purchase 4,445,029.04 1,737,223.59 4,244,541.23 10,426,793.86
Transferred from
construction in 10,436,970.27 10,437,108.87 6,770,224.61 27,644,303.75
progress
Merging
Decrease in current
7,444,516.45 52,776,526.29 55,561,257.60 115,782,300.34
period
Including: Disposal
7,444,516.45 52,776,526.29 55,561,257.60 115,782,300.34
or scrapping
Others
30 June 2022 13,252,090,859.19 49,441,146,756.21 876,412,245.11 63,569,649,860.51
2.Total accumulated
depreciation
31 December 2021 6,411,622,637.46 31,016,196,563.08 645,389,717.80 38,073,208,918.34
Increase
163,514,413.79 864,708,797.79 77,040,341.36 1,105,263,552.94
in current period
Including: Provision 163,514,413.79 864,708,797.79 77,040,341.36 1,105,263,552.94
56
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Transportation
Items Houses and buildings Mechanical equipment and other Total
equipment
Decrease in current
3,522,289.43 43,679,396.10 52,887,542.72 100,089,228.25
period
Including: Disposal
3,522,289.43 43,679,396.10 52,887,542.72 100,089,228.25
or scrapping
30 June 2022 6,571,614,761.82 31,837,225,964.77 669,542,516.44 39,078,383,243.03
3. Total impairment
31 December 2021 84,098,414.32 9,379,681.64 93,478,095.96
Increase
in current period
Including: accrued
Others
Decrease in current
period
Including: Disposal
or scrapping
Others
30 June 2022 84,098,414.32 9,379,681.64 93,478,095.96
4. Total net book
value of Fixed assets
30 June 2022 6,596,377,683.05 17,594,541,109.80 206,869,728.67 24,397,788,521.52
31 December 2021 6,748,932,324.55 18,456,172,705.32 275,569,019.07 25,480,674,048.94
(2) Fixed assets that are idle temporarily
Accumulated Net book
Items Gross value Impairment Notes
depreciation value
Houses and buildings 223,416,300.48 139,189,651.03 84,098,414.32 128,235.13
Mechanical equipment 100,086,005.34 89,198,289.39 9,379,681.64 1,508,034.31
Transportation and Other
1,042,125.89 1,042,125.89
equipment
Total 324,544,431.71 229,430,066.31 93,478,095.96 1,636,269.44
(3) Fixed assets without property rights certificates at the year-end
Items Book value Reason
Houses and buildings 1,053,355,221.77 Processing
(4) Disposal of fixed assets
Items 30 June 2022 31 December 2021
Other equipment 119,424.50
Total 119,424.50
12. Construction in progress
(1) Construction in progress and Project materials
Items 30 June 2022 31 December 2021
57
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
30 June 2022 31 December 2021
Items
Construction in progress 3,002,101,329.94 2,431,761,889.08
Project materials 10,344,959.35 2,420,212.05
Total 3,012,446,289.29 2,434,182,101.13
(2) Details of construction in progress
30 June 2022 31 December 2021
Items Total Total
Gross value Net book value Gross value Net book value
impairment impairment
Cold-rolled
high-strength
steel 62,622,790.07 62,622,790.07
renovation
project
CCPP power
generation 699,139,174.08 699,139,174.08 662,907,316.06 662,907,316.06
project
Special steel
rolling mill
287,611,216.37 287,611,216.37 225,662,005.25 225,662,005.25
renovation
project
360 square
meter sintering 88,405,148.94 88,405,148.94 88,340,997.99 88,340,997.99
machine
360 square
meter sintering
56,547,049.50 56,547,049.50
machine waste
heat utilization
Special Steel
Electric
Furnace
1,099,117,705.56 1,099,117,705.56 975,649,876.97 975,649,876.97
Capacity
Replacement
Project
220kV
Substation
Project of 23,719,815.06 23,719,815.06
General
Energy Plant
The overall
improvement
of Benxi 36,601,399.00 36,601,399.00 36,748,743.10 36,748,743.10
Steel's
manufacturing
Energy
General Plant
No. 1
Converter Gas 94,040,370.69 94,040,370.69 66,477,477.13 66,477,477.13
Tank System
Transformation
Project
Caixi Special
Steel Feeding
Station of Steel 42,748,864.71 42,748,864.71 38,375,436.67 38,375,436.67
Plate Scrap
Plant
Environmental
protection
transformation 24,777,584.51 24,777,584.51
of plate raw
material plant
Benxi Steel
Baojin
Processing and 22,396,129.14 22,396,129.14 22,088,294.34 22,088,294.34
Distribution
Project
Revamping of
desulfurization
system in
22,017,275.39 22,017,275.39
coking process
of general iron
making plant
Other 442,356,806.92 442,356,806.92 315,511,741.57 315,511,741.57
58
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
30 June 2022 31 December 2021
Items Total Total
Gross value Net book value Gross value Net book value
impairment impairment
Total 3,002,101,329.94 3,002,101,329.94 2,431,761,889.08 2,431,761,889.08
1) The change of major construction in progress
Includ
Inp Accumu ing:
Budge ut lated capital
Tran Othe
t ( 10 31 of Prog amount ized Capitali
sfer r 30 June Source
Project thousa Decembe Increase Bu ress of interes zation
to decr 2022 of fund
nd r 2021 dge (% ) capitaliz t of rate
FA ease
yuan) t ed curren
(% ) interest t
period
Cold-rol
led
high-stre
ngth 701,53 62,622,7 62,622,79 85.8 100. 857,867,
Other
steel 5.00 90.07 0.07 9 00 059.71
renovati
on
project
CCPP
power Self-rais
106,00 662,907,3 36,231,8 699,139,1 65.9 70.5 18,311,5 3,814,0
generati 3.93 ed
0.00 16.06 58.02 74.08 5 1 83.31 21.25
on
project
Special
steel
rolling
82,386. 225,662,0 61,949,2 287,611,2 47.5 47.5 8,447,72 1,677,4
mill 3.93 Other
00 05.25 11.12 16.37 1 1 1.10 88.19
renovati
on
project
360
square
137,72 88,340,99 64,150.9 88,405,14 92.0 100. 68,627,4
meter Other
3.00 7.99 5 8.94 0 00 33.26
sintering
machine
Special
Steel
Electric
Self-rais
Furnace 192,34 975,649,8 123,467, 1,099,117 57.1 59.0
ed &
Capacity 3.00 76.97 828.59 ,705.56 4 0
Other
Replace
ment
Project
220kV
Substati
on
Project 31,500. 23,719,8 23,719,81
7.53 7.53 Other
of 00 15.06 5.06
General
Energy
Plant
The
overall
improve
ment of 5,600.0 36,748,74 -147,344 36,601,39 65.3 80.0
Other
Benxi 0 3.10 .10 9.00 6 0
Steel's
manufac
turing
Energy
General
Plant
No. 1
Convert
16,086. 66,477,47 27,562,8 94,040,37 58.4 75.0
er Gas Other
00 7.13 93.56 0.69 6 0
Tank
System
Transfor
mation
Project
Revamp
3,925.0 22,017,2 22,017,27 56.0 56.0
ing of Other
0 75.39 5.39 9 9
desulfuri
59
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Includ
Inp Accumu ing:
Budge ut lated capital
Tran Othe
t ( 10 31 of Prog amount ized Capitali
sfer r 30 June Source
Project thousa Decembe Increase Bu ress of interes zation
to decr 2022 of fund
nd r 2021 dge (% ) capitaliz t of rate
FA ease
yuan) t ed curren
(% ) interest t
period
zation
system
in
coking
process
of
general
iron
making
plan
Caixi
Special
Steel
Feeding
12,114. 38,375,43 4,373,42 42,748,86 35.2 65.0
Station Other
00 6.67 8.04 4.71 9 0
of Steel
Plate
Scrap
Plant
Benxi
Steel
Baojin
Processi 31,037. 22,088,29 307,834. 22,396,12 12.0
7.21 Other
ng and 39 4.34 80 9.14 0
Distribut
ion
Project
1,320,2 2,116,250 362,169, 2,478,419 953,253, 5,491,5
Total
49.39 ,147.51 741.50 ,889.01 797.38 09.44
(3) Construction materials
30 June 2022 31 December 2021
Items Net Book Net Book
Gross value Impairment Gross value Impairment
Value Value
Construction
10,344,959.35 10,344,959.35 2,420,212.05 2,420,212.05
materials
Total 10,344,959.35 10,344,959.35 2,420,212.05 2,420,212.05
13. Right-of-use assets
Items Land Houses and buildings Total
1.Original carrying value
31 December 2021 1,132,274,415.17 368,465,367.56 1,500,739,782.73
Increase
Including: New lease
Merger
Revaluation adjustment
Decrease
Including:Transfer to fixed assets
Disposal
30 June 2022 1,132,274,415.17 368,465,367.56 1,500,739,782.73
60
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
2.Depreciation reserves
31 December 2021 39,904,236.22 20,470,298.20 60,374,534.42
Increase 19,952,118.11 10,235,149.11 30,187,267.22
Including:Accrued 19,952,118.11 10,235,149.11 30,187,267.22
Decrease
Including:Transfer to fixed assets
Disposal
30 June 2022 59,856,354.33 30,705,447.31 90,561,801.64
3.Total Impairment
31 December 2021
Increase
Including:Accrued
Decrease
Including: Transfer to fixed assets
Disposal
30 June 2022
4.Total net carrying value
30 June 2022 1,072,418,060.84 337,759,920.25 1,410,177,981.09
31 December 2021 1,092,370,178.95 347,995,069.36 1,440,365,248.31
14. Intangible assets
(1) Details of intangible assets
Items Land use right Software Total
1.Total gross value
31 December 2021 367,668,797.84 310,401.55 367,979,199.39
Increase
Including: Purchase
Internal Research and Development
Merger
Decrease
Including: Disposal
Invalid and terminated confirmation
30 June 2022 367,668,797.84 310,401.55 367,979,199.39
2. Total of Accumulated Amortization
31 December 2021 69,882,153.01 175,497.57 70,057,650.58
Increase 3,676,687.80 13,397.46 3,690,085.26
Including: Accrued 3,676,687.80 13,397.46 3,690,085.26
Decrease
Including: Disposal
Invalid and terminated confirmation
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
30 June 2022 73,558,840.81 188,895.03 73,747,735.84
3. Total Impairment
31 December 2021
Increase
Including: Accrued
Decrease
Including: Disposal
Invalid and terminated confirmation
30 June 2022
4. Total Net value
30 June 2022 294,109,957.03 121,506.52 294,231,463.55
31 December 2021 297,786,644.83 134,903.98 297,921,548.81
At the end of the period, the proportion of intangible assets formed through internal research
and development of the company to the balance of intangible assets was 0.00%
(2) Land use right without Certificate of Land use right at the end of period
Items Book value Reason
Land use right 39,149,867.21 Processing.
Total 39,149,867.21
15. Deferred income tax asset and deferred income tax liability
(1) Deferred tax asset which have not been offset
30 June 2022 31 December 2021
Items Deductible temporary Deferred tax Deductible temporary Deferred tax
differences asset differences asset
Impairment of assets 467,073,327.08 116,768,331.77 451,808,313.33 112,952,078.33
Internal unrealized
45,320,575.72 11,330,143.93 93,178,777.44 23,294,694.36
profit
Depreciation of fixed
21,906,259.43 5,476,564.86 21,906,259.43 5,476,564.86
assets
Other 59,049,831.39 14,762,457.85 48,132,843.04 12,033,210.76
Total 593,349,993.62 148,337,498.41 615,026,193.24 153,756,548.31
(2) Unrecognized deferred tax assets
Items 30 June 2022 31 December 2021
Deductible temporary differences 305,231,868.13 305,643,743.02
Deductible losses 49,389,905.89 45,093,302.90
Total 354,621,774.02 350,737,045.92
(3) The deductible loss of unrecognized deferred tax assets due in the following period
Items 30 June 2022 31 December 2021 Notes
Year 2022 1,001,166.72 1,001,166.72
Year 2023 10,336,118.65 10,336,118.65
62
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Year 2024 13,696,334.51 13,696,334.51
Year 2025 10,723,063.42 10,723,063.42
Year 2026 9,336,619.60 9,336,619.60
Year 2027 4,296,602.99
Total 49,389,905.89 45,093,302.90
16. Other non-current assets
30 June 2022 31 December 2021
Items Net book Net book
Gross value Impairment Gross value Impairment
value value
Prepayments
for long-term 81,048,057.73 81,048,057.73 30,630,858.13 30,630,858.13
assets
Total 81,048,057.73 81,048,057.73 30,630,858.13 30,630,858.13
17. Short-term loans
(1) Short-term loan presented by category
Items 30 June 2022 31 December 2021
Guaranteed loans 3,149,342,280.00 3,823,088,140.00
Credit loans 200,000,000.00 230,000,000.00
Total 3,349,342,280.00 4,053,088,140.00
(2) There is no short-term loans that were overdue at the end of the reporting period
18. Notes payable
Items 30 June 2022 31 December 2021
Commercial acceptance bill 947,409,186.44 2,349,083,376.48
Bank acceptance bill 1,276,179,360.19 2,286,000,000.00
Total 2,223,588,546.63 4,635,083,376.48
At the end of the reporting period, there is no notes payable due and unpaid.
19. Accounts payable
(1) Accounts payable presented by category
Items 30 June 2022 31 December 2021
Accounts payable for goods 2,324,830,643.95 4,272,890,365.57
Accounts payable for labor 85,146,286.47 51,392,037.81
Accounts payable for project and equipment 534,962,159.94 557,316,885.80
Repair expense and others 409,754,942.03 470,673,396.71
Total 3,354,694,032.39 5,352,272,685.89
(2) Significant accounts payable over one year
63
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Items Ending balance Notes
Company 1 19,630,850.46 not yet reached the settlement conditions
Company 2 14,200,000.00 not yet reached the settlement conditions
Company 3 13,175,829.38 not yet reached the settlement conditions
Company 4 12,045,229.32 not yet reached the settlement conditions
Total 59,051,909.16 not yet reached the settlement conditions
20. Contract liabilities
Items 30 June 2022 31 December 2021
Advance from customers for goods 3,977,011,514.55 4,708,188,093.78
Total 3,977,011,514.55 4,708,188,093.78
21. Employee benefits payable
(1) Presentation of employee benefits payable
Items 31 December 2021 Increase Decrease 30 June 2022
Short-term employee
152,095,376.49 988,379,243.31 1,131,189,360.26 9,285,259.54
benefits
Post-employment benefits
138,719,221.49 138,719,221.49
- defined contribution plans
Termination benefits 15,815,754.54 11,680,992.07 4,134,762.47
Other benefits due within
one year
Total 152,095,376.49 1,142,914,219.34 1,281,589,573.82 13,420,022.01
(2) Short-term employee benefits
Items 31 December 2021 Increase Decrease 30 June 2022
(1) Salary, bonus,
138,746,833.89 652,527,140.06 791,158,685.12 115,288.83
allowance and subsidy
(2) Employee welfare 123,234,634.36 123,234,634.36
(3) Social Insurance 108,816,319.43 108,816,319.43
Including: Medical
86,956,629.40 86,956,629.40
insurance
Work injury insurance 21,849,854.35 21,849,854.35
Maternity insurance 9,835.68 9,835.68
(4) Housing funds 6,862,795.00 67,724,213.48 67,722,849.48 6,864,159.00
(5) Union funds and staff
6,485,747.60 13,018,983.90 17,198,919.79 2,305,811.71
education fee
(6) Short-term compensated
absences
(7) Short-term profit -
sharing scheme
(8) Other 23,057,952.08 23,057,952.08
Total 152,095,376.49 988,379,243.31 1,131,189,360.26 9,285,259.54
(3) Defined contribution plans
Items 31 December 2021 Increase Decrease 30 June 2022
64
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Basic pension fund 134,648,387.08 134,648,387.08
Unemployment insurance 4,070,834.41 4,070,834.41
Total 138,719,221.49 138,719,221.49
22. Taxes payable
Items 30 June 2022 31 December 2021
Value-added tax 152,070,104.68 29,696,795.33
Corporate income tax 15,487,881.15 35,810,190.67
Individual income tax 809,730.46 4,744,348.35
City maintenance and construction tax 978,200.02 2,362,795.25
House property tax 3,831,727.52 16,819,232.89
Land holding tax 1,663,417.54 2,878,545.36
Educational surcharges 730,001.11 1,710,729.40
Environmental tax 415,476.53 9,935,977.17
Others 4,741,450.85 10,309,374.28
Total 180,727,989.86 114,267,988.70
23. Other payables
Items 30 June 2022 31 December 2021
Other payables 1,164,276,844.55 1,348,025,731.98
Total 1,164,276,844.55 1,348,025,731.98
Other payables
(1) Other payables presented by nature
Items 30 June 2022 31 December 2021
Deposit 5,597,299.54 1,556,363.89
Margin 124,842,640.00 127,642,584.79
Accounts 932,207,175.86 1,133,934,695.19
Others 101,629,729.15 84,892,088.11
Total 1,164,276,844.55 1,348,025,731.98
(2) At the end of period, no significant other payables aged over one year
24. Non-current liabilities due within one year
Items 30 June 2022 31 December 2021
Long-term loans due within one year 1,329,194,156.37 246,949,595.95
Bond payables due within one year 25,053,455.40
Lease liabilities due within one year 39,273,924.44 38,777,466.79
65
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Total 1,368,468,080.81 310,780,518.14
25. Other current liabilities
Items 30 June 2022 31 December 2021
Output tax to be transferred 517,011,496.89 612,064,452.20
Total 517,011,496.89 612,064,452.20
26. Long-term loans
Long-term loans presented by category
Categories 30 June 2022 31 December 2021
Pledged loans 622,600,000.00
Guaranteed loans 289,175,109.00 595,921,771.74
Credit loans 2,713,208,679.13 3,004,300,000.00
Total 3,002,383,788.13 4,222,821,771.74
27. Bonds payable
(1) Details of bonds payable
Items 30 June 2022 31 December 2021
Convertible Bond 5,173,595,326.65 5,054,251,668.83
Total 5,173,595,326.65 5,054,251,668.83
66
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
(2) Changes in Bonds payable (Excluding other financial instruments such as preferred stocks and perpetual bonds classified as financial liabilities)
Convert
Balance at the Interest Premium and Balance at the
Issue Term to Issuance Current Repayment to stock
Items Face value end of the accrued at discount end of the
date maturity amount issue this period this
previous year face value amortization current year
period
Convertible Jun
Bond (Bond 6,800,000,000.00 29, 6 years 6,800,000,000.00 5,054,251,668.83 22,524,444.40 141,931,391.31 63,289.09 5,173,595,326.65
code:127018) 2020
Total 6,800,000,000.00 5,054,251,668.83 22,524,444.40 141,931,391.31 63,289.09 5,173,595,326.65
1) Description of the conditions and time for conversion of convertible corporate bonds
Approved by Shenzhen Stock Exchange "Shen Zheng Shang [2020] No. 656", the Company’s RMB 6.80 billion convertible corporate bonds were listed on the
Shenzhen Stock Exchange on August 4, 2020, and the abbreviation is "Bengang Convertible Bonds". The bond code is "127018". The conversion period of the
convertible corporate bonds issued this time is from the first trading day after six months of the issuance of the convertible corporate bonds (July 3, 2020) to the
maturity date of the convertible corporate bonds, that is, from January 4, 2021 to June 28, 2026. The initial conversion price of the convertible bonds is RMB 5.03
per share.
During the period from January 1, 2021 to December 31, 2021, the Company's A-share convertible bonds of RMB 1,168,855,400.00 were converted into the
Company's A-share ordinary shares, and the number of converted shares was 232,819,847 shares. Of which:
In the first quarter of 2021, Bengang's convertible bonds decreased by RMB 2,656,000.00 (26,560 bonds) due to share conversion, the number of shares converted
was 527,021 shares, and the conversion price was RMB 5.03 per share;
In the second quarter of 2021, Bengang's convertible bonds decreased by RMB 46,087,200.00 (460,872 bonds) due to share conversion, the number of shares
converted was 9,162,052 shares, and the conversion price was RMB 5.03 per share;
In the third quarter of 2021, Bengang's convertible bonds decreased by RMB 1,119,957,200.00 (11,199,572 bonds) due to share conversion, the number of shares
67
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
converted was 223,096,752 shares, and the conversion price was RMB 5.02 per share;
In the fourth quarter of 2021, Bengang's convertible bonds decreased by RMB 155,000.00 (1,550 bonds) due to share conversion, the number of shares converted
was 34,022 shares, and the conversion price was RMB 4.55 per share;
In the first quarter of 2022, Bengang's convertible bonds decreased by RMB 67,000.00 (670 bonds) due to share conversion, the number of shares converted was
14,698 shares, and the conversion price was RMB 4.55 per share;
In the second quarter of 2022, Bengang's convertible bonds decreased by RMB 13,200.00 (132 bonds) due to share conversion, the number of shares converted was
3,029.00 shares, and the conversion price was RMB 4.35 per share;
As at June 30, 2022, the company's remaining balance of convertible bonds was RMB 5,631,064,400.00 (56,310,644 bonds).
2) Notes to other financial instruments classified as financial liabilities
None.
68
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
28. Lease liabilities
Items 30 June 2022 31 December 2021
Lease liabilities 1,444,174,357.07 1,463,444,635.94
Include: lease liabilities due within 1 year 39,273,924.44 38,777,466.79
Lease liabilities ending balance 1,404,900,432.63 1,424,667,169.15
29. Deferred income
Items 31 December 2021 Increase Decrease 30 June 2022 Reason
Government
93,106,285.89 9,690,000.00 30,272,965.00 72,523,320.89
Subsidy
Total 93,106,285.89 9,690,000.00 30,272,965.00 72,523,320.89
69
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Projects of government subsidies:
Transfer to current Related to assets or
Items 31 December 2021 Increase Other decrease 30 June 2022
profit and loss income
Liaoning Province "Hundred, Thousand, Thousand,
220,000.00 220,000.00 Assets
Thousand Talents Project" funding project in 2018
2018 Municipal Skill Master Workstation Fee 58,766.34 58,766.34 Assets
2019 Municipal Skill Master Workstation Fee 98,084.16 98,084.16 Assets
2020 Ecological Civilization Construction Project
20,000,000.00 20,000,000.0 Assets
(Special Steel Electric Furnace Upgrade Project)
Advanced Treatment Project of Carbon Fiber
Wastewater in Dongfeng Plant Area of Plate Coking 7,600,000.00 950,000.00 6,650,000.00 Assets
Plant
Desulfurization and Denitrification Project of
Coal-fired Boiler in High-pressure Workshop of 3,000,000.00 300,000.00 2,700,000.00 Assets
Bengang Power Plant
Research and development of high-strength steel for
1,740,000.00 290,000.00 1,450,000.00 Assets
the third generation of automobiles
7 sets of 130 tons combustion boiler flue gas
4,800,000.00 2,400,000.00 2,400,000.00 Assets
desulfurization project in power plant
Power plant three power plant cogeneration reform
2,000,000.00 1,000,000.00 1,000,000.00 Assets
project
Cold-rolled high-strength steel renovation project 50,000,000.00 25,000,000.00 25,000,000.00 Assets
Liaoning Artisan Subsidy 21.89 21.89 Assets
Research on the Influence Mechanism and Control
of Rare Earth Oxide Sulfide on Automobile Steel 457,413.50 122,965.00 334,448.50 Income
Plasticity
Design of metallurgical slag system of rare earth
340,000.00 340,000.00 Income
steel and research on its chemical properties
Provincial Science and Technology Department
National Natural Science Foundation of
334,000.00 334,000.00 Income
China-Liaoning Provincial Government Joint Fund
Project
2019 Provincial Skilled Master Workstation Fee 200,000.00 200,000.00 Income
70
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Transfer to current Related to assets or
Items 31 December 2021 Increase Other decrease 30 June 2022
profit and loss income
2020 Provincial Skilled Master Workstation Fee 100,000.00 100,000.00 Income
Basic research on new technology of composite iron
168,000.00 168,000.00 Income
coke low carbon ironmaking charge
The second batch of planned projects of the 2020
Liaoning Provincial Central Government to guide 300,000.00 300,000.00 Income
local science and technology development funds
2020 Liaoning Province "Hundreds of Thousands of
50,000.00 50,000.00 Income
Talents Project" Funding Project
Air Pollution Prevention and Control Fund-Second
Burning Finishing Dust Removal Ultra-Low 1,640,000.00 205,000.00 1,435,000.00 Assets
Emission Transformation Project
Special fund project for building a strong province
8,100,000.00 8,100,000.00 Assets
through intelligent manufacturing in 2021
2021 Benxi expert talent and enterprise docking
10,000.00 5,000.00 5,000.00 Income
project
Special project for pollution control, energy saving
and carbon reduction in Benxi in 2021 (converter 1,500,000.00 1,500,000.00 Assets
gas recovery and efficiency improvement project)
2021 Provincial Skilled Master Workstation Fee 80,000.00 80,000.00 Assets
Total 93,106,285.89 9,690,000.00 30,272,965.00 72,523,320.89
71
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
30. Share capital
Increase/decrease (+, -)
Items 31 December 2021
Issuing of new share Bonus shares Transferred from reserves Others Subtotal 30 June 2022
Capital shares 4,108,191,379.00 17,727.00 17,727.00 4,108,209,106.00
Notes：The increase in the current period was due to the conversion of the A-share convertible bonds issued by the company into 17,727 A-share ordinary shares in the current period. For
details, please refer to “Note 7 (27) Bonds Payable”.
31. Other equity instruments
(1) Changes in financial instruments such as preferred stocks and perpetual bonds issued at the end of the period
31 December 2021 Increase Decrease 30 June 2022
Items Book
Number Book value Number Number Book value Number Book value
value
Convertible 56,310,644.0
56,311,446.00 947,882,663.63 802.00 16,325.76 947,866,337.87
corporate bonds 0
56,310,644.0
Total 56,311,446.00 947,882,663.63 802.00 16,325.76 947,866,337.87
0
Notes:The decrease in the current period is due to the accumulative amount of RMB 80,200.00 (802 bonds) of A-share convertible bonds issued by the company being converted into the
company’s A-share ordinary shares. As at June 30 2022, the remaining convertible bond balance of the company is RMB5,631,064,400.00 (56,310,644 bonds). For details, please refer to
“Note 5. (27) Bonds Payable”.
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
32. Capital reserves
Items 31 December 2021 Increase Decrease 30 June 2022
Capital premium 13,156,216,704.27 61,887.86 13,156,278,592.13
Other capital reserves 115,917,468.82 115,917,468.82
Total 13,272,134,173.09 61,887.86 13,272,196,060.95
Note: The increase in capital premium is due to the conversion of convertible bonds into company’s
A-share ordinary shares.
33. Special Reserves
Items 31 December 2021 Increase Decrease 30 June 2022
Safety production cost 337,978.57 38,838,893.44 7,687,308.78 31,489,563.23
Total 337,978.57 38,838,893.44 7,687,308.78 31,489,563.23
34. Surplus Reserves
Items 31 December 2021 Increase Decrease 30 June 2022
Statutory surplus reserves 1,195,116,522.37 1,195,116,522.37
Total 1,195,116,522.37 1,195,116,522.37
35. Undistributed Profits
Items Current period Previous period
Before adjustments: undistributed profits at last year-end 2,977,306,297.64 2,692,018,405.40
After adjustments: undistributed profit at this year-opening 2,977,306,297.64 2,692,018,405.40
Add: undistributed profit belonging to parent company 561,735,377.41 2,500,582,902.58
Less: Statutory surplus reserves 234,010,992.52
Common shares dividend payable 2,464,914,827.40 1,981,284,017.82
Common shares dividend transferred to paid-in capital
Ending balance of undistributed profits 1,074,126,847.65 2,977,306,297.64
Notes:
1) Adjustments of accounting standards for business enterprises and relevant new regulations at this
year opening is amount RMB 0.00.
2) Adjustments of Changes in accounting policies at this year opening is amount RMB 0.00.
3) Adjustments of Correction of major accounting errors at this year opening is amount RMB 0.00.
4) Adjustments of Change of consolidation scope caused by the same control at this year opening is
amount RMB 0.00.
5) Other adjustments at this year opening is amount RMB 0.00.
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
36. Operating income and operating cost
Current period Previous period
Items
Revenue Cost Revenue Cost
Principal business 33,109,977,666.90 31,509,788,033.31 35,798,649,027.39 32,161,874,843.45
Other business 1,905,199,638.08 1,867,689,507.32 2,789,479,184.75 2,430,950,949.27
Total 35,015,177,304.98 33,377,477,540.63 38,588,128,212.14 34,592,825,792.72
Details for operating income:
Item Principal business Other business
Classified by business area 33,109,977,666.90 1,905,199,638.08
Including：Domestic 29,041,718,048.17 1,905,199,638.08
Abroad 4,068,259,618.73 -
Classified by the time of commodity transfer 33,109,977,666.90 1,905,199,638.08
Including: recognize at a certain point in time 33,109,977,666.90 1,905,199,638.08
recognize over a certain period of time
Total 33,109,977,666.90 1,905,199,638.08
37. Tax and surcharges
Items Current period Previous period
City maintenance and construction tax 4,726,087.15 76,391,993.56
Educational surcharge 3,554,726.34 54,742,060.36
Housing property tax 40,822,272.51 40,482,761.79
Land use right tax 6,847,915.75 6,848,481.27
Vehicle and vessel use tax 26,912.88 7,286.20
Stamp duty 32,496,146.38 52,930,399.36
Environmental tax 11,411,384.22 10,152,512.38
Total 99,885,445.23 241,555,494.92
38. Selling and distribution expenses
Items Current period Previous period
Import and export agency fee 36,702,096.00 36,480,975.97
Salary and benefits 18,244,427.10 15,027,843.69
Package fee 4,973,464.77 3,787,047.04
Others 7,510,887.30 4,356,803.02
Total 67,430,875.17 59,652,669.72
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
39. General and administrative expenses
Items Current period Previous period
Salary and benefits 149,216,492.01 174,030,589.62
Repair expense 105,587,548.07 107,230,408.76
Land use right fee 19,965,273.48 32,611,483.62
Depreciation 22,309,498.45 19,687,001.55
Heating fee 19,696,001.68 16,329,843.40
Water resources fee 1,099,369.60 4,078,271.50
Environmental protection fee 3,176,610.83 4,145,377.97
Others 31,253,889.98 30,565,866.81
Total 352,304,684.10 388,678,843.23
40. Research and development expenses
Items Current period Previous period
Depreciation, materials and compensation, etc. 22,368,496.87 22,504,022.68
Total 22,368,496.87 22,504,022.68
41. Financial expenses
Items Current period Previous period
Interest expenditure 342,674,208.42 554,219,518.90
Less: Interest income 61,019,147.27 222,276,204.79
Exchange loss 5,012,400.26 -15,432,430.80
Others 6,425,946.41 19,844,815.53
Total 293,093,407.82 336,355,698.84
42. Other income
Items Current period Previous period
Government subsidy related to income 127,965.00 75,883.34
Government subsidy related to assets 30,145,000.00 32,135,000.00
Individual tax service fee refund 2,577.92
Others 380,000.00 448,600.00
Total 30,655,542.92 32,659,483.34
43. Income on investment
Items Current period Previous period
Income on long-term equity investment by equity method 85,455.22 281,949.15
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Other 30,387.62 1,553,175.04
Total 115,842.84 1,835,124.19
44. Credit impairment losses
Items Current period Previous period
Loss from bad debts of account receivable -2,845,559.93 1,870,902.74
Loss from bad debts of other receivables 2,051,653.20 179,075.09
Total -793,906.73 2,049,977.83
Note: Loss is shown as negative figures
45. Assets impairment loss
Items Current period Previous period
Impairment of inventory and contract performance costs -72,880,991.53 6,629,442.12
Total -72,880,991.53 6,629,442.12
Note: Loss is shown as negative figures
46. Asset disposal income
The amount recognized
Items Current period Previous period
in non-recurring profit
Disposal gains or losses arising from
3,648,546.62 130,675.05 3,648,546.62
disposal of fixed assets not held for sale
Total 3,648,546.62 130,675.05 3,648,546.62
Note: Loss is shown as negative figures
47. Non-operating income
Previous
Items Current period The amount recognized in non-recurring profit
period
Non-current assets
711,708.55 717,592.73 711,708.55
scrapped gains
Payables that cannot be
27,948,070.49 27,948,070.49
paid
Others 1,912,502.31 2,555,535.73 1,912,502.31
Total 30,572,281.35 3,273,128.46 30,572,281.35
48. Non-operating expense
The amount recognized in
Items Current period Previous period
non-recurring profit
Non-current assets
10,765,339.79 22,989,643.14 10,765,339.79
scrapped loss
Total 10,765,339.79 22,989,643.14 10,765,339.79
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
49. Income tax expenses
(1) Income tax expenses
Items Current period Previous period
Income tax payable for the current year 197,785,904.70 744,822,287.29
Adjustment of deferred income tax 5,419,049.90 2,155,303.16
Total 203,204,954.60 746,977,590.45
(2) Accounting profit and income tax expense adjustment process
Items Current period
Total profit 783,168,830.84
Income tax expense calculate according to the official or applicable tax rate 195,792,207.71
Effect of non-taxable income -21,363.81
Effect of non-deductible costs, expenses or losses 49,182.62
Effect of use of deductible losses of unrecognized deferred tax asset of prior period -2,632,491.23
Others 10,017,419.31
Income tax expenses 203,204,954.60
50. Notes of statement of cash flows
(1) Cash received related to other operating activities
Items Current period Previous period
Withdraw of current accounts, advance for another 97,205,274.52 14,619,093.59
Interest income 61,019,147.27 222,276,204.79
Special subsidy income 9,690,000.00 1,225,520.00
Non-operating income 1,068,391.65
Others 804,702.43 130,327.27
Total 168,719,124.22 239,319,537.30
(2) Cash paid related to other operating activities
Items Current period Previous period
Current accounts, advance for another 22,514,446.73 179,844,208.53
Sales expenses 50,910,874.42 4,351,842.16
Administrative expenses 168,184,142.54 15,765,954.58
Charges 6,425,946.41 2,980,552.80
Others 1,023,567.21 437,431.93
Total 249,058,977.31 203,379,990.00
(3) Cash received related to other financing activities
Items Current period Previous period
Margin for bill, letter of guarantee and letter of credit 2,548,792,921.60
Total 2,548,792,921.60
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
(4) Cash paid related to other financing activities
Items Current period Previous period
Margin for bill, letter of guarantee and letter of credit 71,693,646.43
Total 71,693,646.43
51. Supplementary details of statement of cash flows
(1) Supplementary details for statement of cash flows
Items Current period Previous period
1. A reconciliation of net profit to cash flows from
operating activities:
Net profit 579,963,876.24 2,223,166,287.43
Add: Credit impairment loss 793,906.73 2,049,977.83
Impairment of assets 72,880,991.53 6,629,442.12
Depreciation of fixed assets 1,105,263,552.94 1,165,395,017.14
Depreciation of productive biological assets
Depletion of oil and gas properties
Depreciation of right-of-use assets 30,187,267.22 31,329,731.88
Amortization of intangible assets 3,690,085.26 3,283,685.40
Amortization of long-term deferred expenses
Losses proceeds from disposal of fixed assets, intangible
-3,648,546.62 22,272,050.41
assets and other long-term assets (Earnings marked“－”)
Scrapped losses from fixed assets (Earnings
10,053,631.24
marked“－”)
Loss from changes in fair value (Earnings marked“－”)
Financial expenses (Earnings marked“－”) 342,674,208.42 336,355,698.84
Investment losses (Earnings marked“－”) -115,842.84
Deferred tax assets reduction (Addition marked“－”) 5,419,049.90 -2,155,303.16
Deferred tax liabilities increased (Reduction marked“－”)
Reduction of inventory (Addition marked“－”) 1,435,572,851.38 376,719,726.97
Operating receivable items reduction (Addition
2,160,572,533.72 102,664,138.59
marked“－”)
Operating payable items increase (Less marked"－") -5,468,912,532.78 -2,742,794,233.42
Others -46,943,190.13
Net cash flows generated from operating activities 227,451,842.21 1,524,916,220.03
2. Payments of investing and financing activities not
involving cash:
Liabilities transferred to capital
Convertible corporate bonds due within one year
Fixed assets financed by leasing
3. The net increase in cash and cash equivalents:
Ending balance of cash 4,750,473,298.51 4,457,454,114.91
Less: Opening balance of cash 6,299,099,063.48 9,229,417,595.12
Add: Ending balance of cash equivalents
78
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Items Current period Previous period
Less: Opening balance of cash equivalents
The net increase in cash and cash equivalents -1,548,625,764.97 -4,771,963,480.21
(2) The structure of cash and cash equivalents
Items 30 June 2022 31 December 2021
1. Cash 4,750,473,298.51 6,299,099,063.48
Including: Cash on hand 1,232.53 24,334.93
Bank deposits available on demand 4,750,472,065.98 6,299,074,728.55
2. Cash equivalents
Including: Investment of securities due within 3 months
3. Ending balance of cash and cash equivalents 4,750,473,298.51 6,299,099,063.48
Including: Cash and cash equivalents limited to use by the parent
company of another subsidiary in the group
52. Assets of which ownership or right to use are restricted
Items Ending balance Reason
Cash at bank and on hand 54,897,399.20 Deposit for notes and letter of credit
Accounts receivable financing 101,670,000.00 Pledge for bank acceptance bill
Fixed assets 87,549,758.85 Mortgage for fund borrowing
Intangible assets 35,846,028.60 Mortgage for fund borrowing
Total 279,963,186.65
53. Foreign currency monetary items
(1) Foreign currency monetary items
Ending
balance
Items Ending balance in foreign currency Exchange rate at the year-end
translated to
RMB
Cash at bank and
14,102,344.42
on hand
Including: USD 2,101,252.26 6.7114 14,102,344.42
EUR
HKD
Short-term loans 1,342,280.00
Including: USD 200,000.00 6.7114 1,342,280.00
EUR
JPY
Long-term loans 300,627,944.50
Including: USD 9,500,000.00 6.7114 63,758,300.00
79
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Ending
balance
Items Ending balance in foreign currency Exchange rate at the year-end
translated to
RMB
EUR 32,904,937.70 7.0084 230,610,965.70
JPY 127,468,000.00 0.0491 6,258,678.80
80
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
(2) The Company has no overseas operating entities.
54. Government subsidies
(1) Government subsidies related to assets
Balance The amount included in the current profit or
Item Amount sheet loss or offsetting the loss of related costs
items Current period Previous period Items
2018 Municipal Skill
Deferred Other
Master Workstation 240,000.00
Income income
Fee
Advanced Treatment
Project of Carbon
Deferred Other
Fiber Wastewater in 9,500,000.00 950,000.00 950,000.00
Income income
Dongfeng Plant Area
of Plate Coking Plant
Desulfurization and
Denitrification
Project of Coal-fired
Deferred Other
Boiler in 6,000,000.00 300,000.00 300,000.00
Income income
High-pressure
Workshop of
Bengang Power Plant
Research and
development of
Deferred Other
high-strength steel for 2,900,000.00 290,000.00 290,000.00
Income income
the third generation of
automobiles
7 sets of 130 tons
combustion boiler
Deferred 2,400,000.0 2,400,000. Other
flue gas 24,000,000.00
Income 0 00 income
desulfurization
project in power plant
Power plant three
power plant Deferred 1,000,000.0 1,000,000. Other
10,000,000.00
cogeneration Income 0 00 income
renovation project
Cold-rolled
Deferred 25,000,000. 25,000,000 Other
high-strength steel 250,000,000.00
Income 00 .00 income
renovation project
Liaoning Artisan Deferred Other
100,002.97
Subsidy Income income
Finishing Dust 2,050,000.00 Deferred 205,000.00 Other
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Balance The amount included in the current profit or
Item Amount sheet loss or offsetting the loss of related costs
items Current period Previous period Items
Removal Ultra-Low Income income
Emission
Transformation
Project
Special fund project
for building a strong
province through Deferred Other
8,100,000.00
intelligent Income income
manufacturing in
2021
Special project for
pollution control,
energy saving and
carbon reduction in
Deferred Other
Benxi in 2021 1,500,000.00
Income income
(converter gas
recovery and
efficiency
improvement project)
2021 Municipal Skill
Deferred Other
Master Workstation 80,000.00
Income income
Fee
2020 Ecological
Civilization
Construction Project Deferred Other
20,000,000.00
(Special Steel Electric Income income
Furnace Upgrade
Project)
(2) Government subsidies related to income
The amount included in the current profit or
Items Amount loss or offsetting the loss of related costs
Current period Previous period Items
Research on the
Influence Mechanism
and Control of Rare
547,040.00 122,965.00 24,876.50 Other income
Earth Oxide Sulfide
on Automobile Steel
Plasticity
2021 Benxi expert Other income
10,000.00 5,000.00
talent and enterprise
82
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
The amount included in the current profit or
Items Amount loss or offsetting the loss of related costs
Current period Previous period Items
docking project
Design of Other income
metallurgical slag
system of rare earth
340,000.00
steel and Study on its
physical and chemical
properties
Joint fund project of Other income
provincial science and
Technology
Department, National
Natural Science 334,000.00
Foundation of China
and Liaoning
Provincial
Government
2019 Provincipal Skill Other income
Master Workstation 200,000.00
Fee
2020 Provincipal Skill Other income
Master Workstation 100,000.00
Fee
Research on new Other income
technology of
composite iron coke 168,000.00
low carbon iron
making charge
The second batch of Other income
planned projects of
Liaoning provincial
central leading local
300,000.00
science and
technology
development funds in
2021
Liaoning Province " Other income
ten million Talents
50,000.00
Project" funding
project in 2020
Liaoning Province 250,000.00 30,000.00 Other income
83
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
The amount included in the current profit or
Items Amount loss or offsetting the loss of related costs
Current period Previous period Items
"Hundred, Thousand,
Thousand, Thousand
Talents Project"
funding project in
2018
2019 Municipal Skill
Master Workstation 180,000.00 21,006.84 Other income
Fee
Tax refund 380,000.00 380,000.00 Other income
Stable Job Subsidy 4,120.00 4,120.00 Administrative
expense
(3) Return of government subsidies during the reporting period
None
55. Lease
Item Current period
Interest expense from lease liability 27,576,079.44
Short-term lease expenses from simplified treatment included in the cost of
related assets or the current profit and loss
Low-value asset lease expenses from simplified treatment included in the
cost of related assets or the current profit and loss (Except short- term lease
expenses from low-value asset)
Variable lease payments without including in the measurement of the lease
liability included in the cost of related assets or the current profit and loss
Including：sale-leaseback transaction generation part
Income from subletting the right-of-use assets
Total cashflow out related to leasing 46,846,358.31
Profit and loss from sale-leaseback transactions
Cash inflows from sale-leaseback transactions
Cash outflows from leaseback
VI. Changes in the scope of consolidation
1. Changes in consolidation scope due to other reasons
Chongqing Liaoben Steel & Iron Trading Co., Ltd., a wholly-owned subsidiary, was
cancelled in the current period.
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
VII. Equity in other entities
1. Equity in subsidiaries
(1) Constitution of enterprise group
Principal Shareholding ratio
Name of the Registered Notes of
place of Acquiring method
subsidiaries address business Direct Indirect
business
Wuxi
Bengang Business
Steel & Iron Wuxi Wuxi Sales 100.00 combination under
Sales Co., common control
Ltd.
Tianjin
Bengang Business
Steel & Iron Tianjin Tianjin Sales 100.00 combination under
Trading Co., common control
Ltd.
Nanjing
Bengang Business
Materials Nanjing Nanjing Sales 100.00 combination under
Sales Co., common control
Ltd.
Yantai
Bengang Business
Steel & Iron Yantai Yantai Sales 100.00 combination under
Sales Co., common control
Ltd.
Harbin
Bengang Business
Economic Harbin Harbin Sales 100.00 combination under
and Trading common control
Co., Ltd.
Changchun Business
Changchun Changchun Sales 100.00
Bengang combination under
85
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Principal Shareholding ratio
Name of the Registered Notes of
place of Acquiring method
subsidiaries address business Direct Indirect
business
Steel & Iron common control
Sales Co.,
Ltd.
Guangzhou
Bengang
Steel & Iron Guangzhou Guangzhou Sales 100.00 Establishment
Trading Co.,
Ltd.
Shanghai
Bengang
Metallurgy
Shanghai Shanghai Sales 100.00 Establishment
Science and
Technology
Co., Ltd.
Bengang
Steel Plates
Manufacturi
Liaoyang Liaoyang Liaoyang 100.00 Establishment
ng
Pellet Co.,
Ltd.
Dalian
Benruitong
Automobile Manufacturi
Dalian Dalian 65.00 Establishment
Material ng
Technology
Co., Ltd.
Bengang
POSCO Business
Manufacturi
Cold-rolled Benxi Benxi 75.00 combination under
ng
Sheet Co., common control
Ltd.
Benxi Benxi Benxi Sales 100.00 Establishment
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Principal Shareholding ratio
Name of the Registered Notes of
place of Acquiring method
subsidiaries address business Direct Indirect
business
Bengang
Steel Sales
Co., Ltd
Shenyang
Bengang
Metallurgical
Shenyang Shenyang Sales 100.00 Establishment
Science and
Technology
Co., Ltd.
Bengang
Baojin
(Shenyang) Business
Manufacturi
auto new Shenyang Shenyang 85.00 combination under
ng
material common control
technology
Co., Ltd.
(2) Significant but not wholly-owned subsidiaries
Profits and losses Dividend declared Ending
Proportion of
attributing to to distribute to balance of
Name of the subsidiaries non-controlling
non-controlling non-controlling non-controlling
interests (%)
shareholders shareholders interests
Bengang POSCO Cold-rolled
25.00 22,883,060.69 567,286,294.20
Sheet Co., Ltd.
(3) Financial information of significant but not wholly-owned subsidiaries
30 June 2022
Non-curre
Name of the
Non-current Current nt
subsidiaries Current assets Total assets Total liabilities
assets liabilities liabilitie
s
2,578,868,342.31 1,064,567,282.14 3,643,435,624.45 1,374,290,447.66 1,374,290,447.66
Bengang POSCO
87
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Name of the 30 June 2022
subsidiaries
Co., Ltd.
(Continute)
31 December 2021
Non-curre
Name of the Current Non-current Current
Total assets nt Total liabilities
subsidiaries assets assets liabilities
liabilities
Bengang POSCO
2,969,950,327.43 1,134,904,732.59 4,104,855,060.02 1,937,187,863.07 1,937,187,863.07
Cold-rolled Sheet
Co., Ltd.
Current period
Total
Name of the subsidiaries Operating Net cash flows from
Net profit comprehensive
income operating activities
income
Bengang POSCO Cold-rolled Sheet 5,229,533,000.35 91,532,242.77 91,532,242.77 306,038,909.09
Co., Ltd.
Previous period
Total
Name of the subsidiaries Operating Net cash flows from
Net profit comprehensive
income operating activities
income
Bengang POSCO Cold-rolled Sheet 5,691,380,556.81 62,979,247.98 62,979,247.99 -138,708,467.08
Co., Ltd.
2. Other
(1) Summary of financial information of unimportant joint ventures and associates
30 June 2022/ Current period 31 December 2021/ Previous period
Joint ventures:
Total book value of investment: 3,067,239.29 2,981,784.07
The total amount of the following
items calculated according to the
shareholding ratio
—Net profit 85,455.22 520,432.46
88
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
30 June 2022/ Current period 31 December 2021/ Previous period
—Other comprehensive income
—Total comprehensive income 85,455.22 520,432.46
VIII. Risks associated with financial instruments
The company faces various financial risks in its operation: credit risk, market risk and
liquidity risk. The company's board of directors is fully responsible for the determination of
risk management objectives and policies, and assumes ultimate responsibility for the risk
management objectives and policies. However, the board of directors has authorized the
company's planning and development department to design and implement procedures that
ensure the effective implementation of risk management objectives and policies. The board of
directors reviews the effectiveness of the implemented procedures and the rationality of risk
management objectives and policies through reports submitted by the planning and
development department. The company's internal auditors also audit risk management policies
and procedures, and report relevant findings to the audit committee.
The overall goal of the company's risk management is to formulate a risk management policy
that minimizes risks without excessively affecting the company's competitiveness and
resilience.
1. Credit risk
Credit risk refers to a financial loss to a party due to failure to discharge an obligation by the
counterparties. The Company is exposed to credit risk arising from customers’ failure to
discharge an obligation in sales on credit. Before signing a new contract, the company will
assess the credit risk of new customers, including external credit ratings and bank credit
certificates in certain cases (when this information is available). The company has set a credit
limit for each customer, which is the maximum amount that does not require additional
approval.
The Company ensures that the company's overall credit risk is within a controllable range
through regular monitoring of existing customers' credit ratings and periodic review of aging
analysis of accounts receivable. In addition, the Company strictly approves the line of credit,
and only sells on credit to important customers for newly-developed products. In the
monitoring of credit risk of customers, the Company sorts customers into groups by their
credit characteristics. Those customers which are rated as “high risk” will be put in the
restricted client list. The Company can only sell to these customers on credit with additional
approval; otherwise, the Company must ask for a corresponding deposit in advance.
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
2. Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation
to settle by delivering cash or other financial assets. It is the Company's policy to ensure that
sufficient cash is available to meet debt obligations as they fall due. Liquidity risk is centrally
controlled by the Company's financial department. The finance department ensures that the
company has sufficient funds to repay its debts under all reasonable forecasts by monitoring
unrestricted monetary fund balances, bank acceptance bills that will be realized when due, and
rolling forecasts of cash flows for the next 12 months.
The following table sets forth the remaining contractual maturity dates of the Company's
non-derivative financial liabilities that should be repaid in accordance with the terms of the
agreement. The table has been prepared based on the undiscounted cash flows of financial
liabilities based on the earliest date on which the Company can be required to pay. Cash flow
including interest and principal:
(In 10 thousand Yuan)
30 June 2022
Items Over 5
Instant repayment Within 1 year 1-2years 2-5years Total
years
Trade and other payables 693,670.74 693,670.74
Borrowing and Interest 494,568.82 255,904.22 678,612.89 695.49 1,429,781.42
Total 1,188,239.56 255,904.22 678,612.89 695.49 2,123,452.16
31 December 2021
Items Over 5
Instant repayment Within 1 year 1-2years 2-5years Total
years
Trade and other payables 1,133,538.18 1,133,538.18
Borrowing and Interest 441,115.83 226,971.68 832,756.07 1,500,843.58
Total 1,574,654.01 226,971.68 832,756.07 2,634,381.76
3. Market risk
Market risk of financial instruments refers to fluctuations of fair value or future cash flows
due to market price changes, including currency risk, interest rate risk, and other price risk.
(1) Interest rate risk
Interest rate risk refers to fluctuations of fair value or future cash flows due to market rate
changes. The Company’s exposure to currency risk is primarily arising from variable-rate
bank balances and variable-rate borrowings. Currently, the Company does not have a specific
policy to manage its interest rate risk. The management will carefully choose financing
methods, and combine fixed interest rate with variable interest rate, short-term obligations
with long-term obligations. By using effective interest rate risk management methods, the
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Company closely monitors interest rate risk and will consider interest-rate swaps to acquire an
expected structure of interest rates shall the need arise.
(2) Currency risk
Currency risk refers to fluctuations of fair value or future cash flows due to exchange rate
changes. The Company has been constantly working on the adjustment of the organizational
framework of risk management and optimization of debt structures to lower the currency risk.
The currency risk facing the Company originates from the assets and liabilities measured by
US dollars, Euro, Hongkong dollars and Japanese Yen. The ending balance of the assets and
liabilities after converted in RMB is shown as below:
(In 10 thousand Yuan)
30 June 2022
Items
USD Others Total
Assets 1,410.23 1,410.23
Liabilities 6,510.06 23,686.96 30,197.02
Total 7,920.29 23,686.96 31,607.25
31 December 2021
Items
USD Others Total
Assets 1,795.12 397.56 2,192.68
Liabilities 68,060.60 34,900.31 102,960.91
Total 69,855.72 35,297.87 105,153.59
On June 30, 2022, with all other variables held constant, if the relevant currency appreciates
or depreciates against RMB by 5%, the company will decrease or increase the net profit of
RMB 1,439.34 in 10 thousand (On December 31, 2021: RMB 3,778.81in 10 thousand).
Management believes that 5% reasonably reflects the reasonable range of possible
currency-to-renminbi changes in the next year.
IX. Disclosure of fair value
The input value used in fair value measurement is divided into three levels:
The input value of the first level is the unadjusted quotation of the same asset or liability that
can be obtained on the measurement date in an active market.
The input value of the second level is the input value of the related assets or liabilities that is
directly or indirectly observable except the input value of the first level.
The third level of input value is the unobservable input value of related assets or liabilities.
The level to which the fair value measurement result belongs is determined by the lowest
level to which the input value that is important to the fair value measurement as a whole
belongs.
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1. Fair value of assets and liabilities measured at fair value
Fair value at the end of the period
Fair value Fair value
Item Fair value measurement
measurement in measurement in Total
in the third level
the first level the second level
1. Continuous
fair value
measurement
◆ Accounts
receivable 254,184,970.37 254,184,970.37
financing
◆ Investment
in other equity 1,042,024,829.00 1,042,024,829.00
instruments
Total assets
continuously
1,296,209,799.37 1,296,209,799.37
measured at
fair value
Total liabilities
continuously
measured at
fair value
2.
Non-continuous
fair value
measurement
2. The basis for determining the market value of the continuous and non-continuous
first-level fair value measurement projects
The Company has no first level fair value measurement project.
3. Continuous and non-continuous second-level fair value measurement items, using
valuation techniques and qualitative and quantitative information on important parameters
The Company has no second level fair value measurement items.
4. Continuous and non-continuous third-level fair value measurement items, using valuation
techniques and qualitative and quantitative information on important parameters
Other equity instrument investments that are continuously measured at level 3 fair value are
unlisted equity investments held by the Company. Receivable financing with continuous
third-level fair value measurement is the bank acceptance bill held by the company, and its fair
92
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
value is confirmed with reference to the par value.
The Company adopted valuation techniques for fair value measurement, mainly using the
valuation technique of the listed company comparison method, referring to the stock prices of
similar securities and taking into account liquidity discounts.
5. Continuous third level fair value measurement items, adjustment information between
opening and closing book values and sensitivity analysis of unobservable parameters
None.
6. For continuous fair value measurement projects, where conversion between various levels
occurs during the period, the reason for the conversion and the policy for determining the
timing of conversion
During the current period, there was no conversion between various levels.
7. Changes in valuation techniques and reasons for changes during the period
No changes during the period.
8. Fair value of financial assets and financial liabilities not measured at fair value
None.
9. Other
None.
X. Related party transactions
1. Details of parent company
Registered
Place of Notes of Share Voting
Name of parent company Capital
Registry Business proportion (%) rights (%)
（billion）
Benxi Steel & Iron (Group) Benxi,
Manufacturing 7.401 58.65 58.65
Co., Ltd. Liaoning
Note:The ultimate controlling party of the Company is Ansteel Group Co., Ltd.
2. Details of the subsidiaries
For details of subsidiaries of the company please refer to Note 7 “Equity in other entities”.
93
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
3. The company's joint ventures and associates
For details of significant joint ventures and associates of the company please refer to Note 7
“Equity in other entities”.
Other joint ventures or associates that have related party transactions with the company in the
current period, or have related party transactions with the company in the previous period and
formed a balance are as follows:
Name of joint ventures and associates Relationship
Zhejiang Bengang Jingrui Steel Processing Co., Ltd. Associate
4. Details of other related parties
Name of other related parties Relationship
Bengang Group Co., Ltd. (here in after referred to as “Bengang
Parent company &controlling shareholder
Group”)
Benxi Steel Stainless Steel Cold Rolling Dandong Co., Ltd. same parent company
Benxi Iron and Steel (Group) Mining Co., Ltd. same parent company
Benxi Iron and Steel (Group) Metallurgical Slag Co., Ltd. same parent company
Benxi Iron and Steel (Group) Steel Processing and Distribution
same parent company
Co., Ltd.
Benxi Iron and Steel (Group) Real Estate Development Co.,
same parent company
Ltd.
Benxi Iron and Steel (Group) Machinery Manufacturing Co.,
same parent company
Ltd.
Benxi Iron and Steel (Group) Construction Co., Ltd. same parent company
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. same parent company
Benxi Iron and Steel (Group) Construction Co., Ltd. same parent company
Bengang Electric Co., Ltd. Associates of the parent company
Benxi High-tech Drilling Tools Manufacturing Co., Ltd. Both belong to Bengang Group
Benxi New Business Development Co., Ltd. same parent company
Liaoning Metallurgical Technician College same parent company
Liaoning Metallurgical Vocational and Technical College same parent company
Benxi Iron and Steel Group International Economic and Trade
Both belong to Bengang Group
Co., Ltd.
Benxi Iron and Steel (Group) Information Automation Co., Ltd. same parent company
Benxi Iron and Steel (Group) Thermal Development Co., Ltd. same parent company
Benxi Iron and Steel (Group) Design and Research Institute same parent company
Benxi Beiying Iron and Steel (Group) Co., Ltd. Both belong to Bengang Group
Liaoning Hengtong Metallurgical Equipment Manufacturing
same parent company
Co., Ltd.
94
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Name of other related parties Relationship
Liaoning Hengtai Heavy Machinery Co., Ltd. same parent company
Angang Electric Co., Ltd. Both belong to Ansteel Group
Ansteel Scrap Resources (Anshan) Co., Ltd. Both belong to Ansteel Group
Chaoyang Branch of Ansteel Scrap Resources (Anshan) Co.,
Both belong to Ansteel Group
Ltd.
Angang Steel Rope Co., Ltd. Both belong to Ansteel Group
Ansteel Group Engineering Technology Co., Ltd. Both belong to Ansteel Group
Ansteel Group International Economic and Trade Co., Ltd. Both belong to Ansteel Group
Ansteel Construction Group Co., Ltd. Both belong to Ansteel Group
Ansteel Industrial Group Metallurgical Machinery Co., Ltd. Both belong to Ansteel Group
Ansteel Steel Processing and Distribution (Dalian) Co., Ltd. Both belong to Ansteel Group
Ansteel Group Engineering Technology Development Co., Ltd. Both belong to Ansteel Group
Dalian Boroller Steel Pipe Co., Ltd. Same parent company
Benxi Iron and Steel (Group) Chint Building Materials Co.,
Same parent company
Ltd.
Suzhou Bengang Industrial Co., Ltd. Shareholding company
Benxi Iron and Steel Group Finance Co., Ltd. Both belong to Bengang Group
Ansteel Chemical Technology Co., Ltd. Both belong to Ansteel Group
Ansteel Energy Technology Co., Ltd. Both belong to Ansteel Group
Panzhong Yihong Metal Products (Chongqing) Co., Ltd. Both belong to Ansteel Group
Delin Land Port Supply Chain Service Co., Ltd. Both belong to Ansteel Group
Benxi Iron and Steel Tendering Co., Ltd. Both belong to Bengang Group
Anshan Iron and Steel Co., Ltd. Both belong to Ansteel Group
Liaoning Hengyi Financial Leasing Co., Ltd. Both belong to Bengang Group
Ansteel Group Finance Co., Ltd. Both belong to Ansteel Group
Ansteel Scrap Resources (Anshan) Co., Ltd. Both belong to Ansteel Group
Ansteel Heavy Machinery Co., Ltd. Both belong to Ansteel Group
Ansteel Mining Machinery Manufacturing Co., Ltd. Both belong to Ansteel Group
Benxi Iron and Steel (Group) Engineering Construction
Same parent company
Supervision Co., Ltd.
Tianjin Angang Steel Processing and Distribution Co., Ltd. Both belong to Ansteel Group
Guangzhou Free Trade Zone Benxi Steel Sales Co., Ltd. Same parent company
Angang Steel Distribution (Hefei) Co., Ltd Both belong to Ansteel Group
Angang Group (Anshan) railway transportation equipment
Both belong to Ansteel Group
manufacturing Co., Ltd
Angang Metal Structure Co., Ltd Both belong to Ansteel Group
Angang Green Resources Technology Co., Ltd Both belong to Ansteel Group
Angang Shenyang steel processing and Distribution Co., Ltd Both belong to Ansteel Group
Angang industrial group (Anshan) equipment operation and Both belong to Ansteel Group
95
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Name of other related parties Relationship
maintenance Co., Ltd
Angang Steel Casting Co., Ltd Both belong to Ansteel Group
North Hengda Logistics Co., Ltd Both belong to Bengang Group
Benxi Aike hydraulic seal Co., Ltd Same parent company
Benxi North Steel Pipe Co., Ltd Both belong to Bengang Group
Benxi North Iron Industry Co., Ltd Both belong to Bengang Group
Benxi Beitai Casting Pipe Co., Ltd Both belong to Bengang Group
Benxi Beiying iron and Steel Group Import and Export Co., Ltd Both belong to Bengang Group
Benxi Dongfeng Lake iron and steel resources utilization Co.,
Same parent company
Ltd
Pengcheng branch of Benxi Dongfeng Lake iron and steel
Same parent company
resources utilization Co., Ltd
Benxi Iron and steel (Group) No.2 Construction Engineering
Same parent company
Co., Ltd
Benxi Iron and steel (Group) No.1 Construction Engineering
Same parent company
Co., Ltd
Benxi Iron and steel (Group) Engineering Quality Inspection
Same parent company
Co., Ltd
Benxi Iron and steel (Group) Guomao Tengda Co., Ltd Same parent company
Benxi Iron and steel (Group) Electromechanical Installation
Same parent company
Engineering Co., Ltd
Benxi Iron and steel (Group) construction advanced decoration
Same parent company
Co., Ltd
Benxi Iron and steel (Group) Mine Construction Engineering
Same parent company
Co., Ltd
Benxi Iron and steel (Group) mining Honghe Industrial
Same parent company
Development Co., Ltd
Benxi Iron and steel (Group) mining and Mineral Resources
Same parent company
Development Co., Ltd
Benxi Iron and steel (Group) mining Liaoyang jiajiabao iron
Same parent company
ore Co., Ltd
Benxi Iron and steel (Group) mining Yanjiagou Limestone
Same parent company
Mine Co., Ltd
Benxi Iron and steel (Group) road and Bridge Construction
Same parent company
Engineering Co., Ltd
Benxi Iron and steel (Group) equipment Engineering Co., Ltd Same parent company
Benxi Iron and steel (Group) Industrial Development
Same parent company
electromechanical installation Co., Ltd
Benxi Iron and steel (Group) Industrial Development Co., Ltd.
Same parent company
recycling branch
Benxi Iron and steel (Group) Co., Ltd Same parent company
96
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Name of other related parties Relationship
Benxi Xihu metallurgical burden Co., Ltd Same parent company
Benxi Weier surfacing Manufacturing Co., Ltd Same parent company
Benxi Xinhe Mining Co., Ltd Same parent company
Liaoning slag powder Co., Ltd Same parent company
Liaoning Tianyu Fire Engineering Co., Ltd Same parent company
Liaoning Yitong Machinery Manufacturing Co., Ltd Same parent company
Changchun FAW Angang Steel processing and Distribution
Both belong to Ansteel Group
Co., Ltd
5. Related Party Transactions
(1) Related party transactions of purchasing goods and services
Company as the purchaser
Currency unit: Yuan
Whether
The content of the
Approved
Name related party Current period transactio Previous period
transaction limit
transactions n limit is
exceeded
Benxi Iron and steel (Group)
Repair expense 122,783,160.52 350,000,000.00 No 147,459,999.95
Co., Ltd
Benxi Iron and steel (Group)
Land lease fee 30,187,267.22 No 32,611,483.62
Co., Ltd
Benxi Steel Stainless Steel
Cold Rolling Dandong Co., Products No 630,542.06
Ltd.
Benxi Iron and Steel (Group)
Labor cost 2,613,517.18 50,000,000.00 No 3,881,885.31
Mining Co., Ltd.
Benxi Iron and Steel (Group)
Raw materials 3,510,974,470.81 8,950,000,000.00 No 3,331,093,031.86
Mining Co., Ltd.
Benxi Iron and Steel (Group)
Freight No 6,659,006.59
Mining Co., Ltd.
Benxi Iron and Steel (Group)
Raw materials 139,381,388.64 51,000,000.00 No 245,760,132.42
Metallurgical Slag Co., Ltd.
Benxi Iron and Steel (Group)
Steel Processing and Processing fee No 50,773.63
Distribution Co., Ltd.
Benxi Iron and Steel (Group)
Machinery Manufacturing Co., Spare parts 23,012,269.46 100,000,000.00 No 14,917,125.64
Ltd.
97
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Benxi Iron and Steel (Group)
Machinery Manufacturing Co., Repair service 15,607,849.52 100,000,000.00 No 2,923,241.16
Ltd.
Benxi Iron and Steel (Group)
Spare parts 4,646,764.56 520,000,000.00 No 1,987,617.54
Construction Co., Ltd.
Benxi Iron and Steel (Group)
Project fee 90,638,976.00 No 140,577,406.08
Construction Co., Ltd.
Benxi Iron and Steel (Group)
Repair service 22,969,228.64 No 41,682,570.67
Construction Co., Ltd.
Benxi Iron and Steel (Group)
Raw materials 4,646,764.56 No 3,755,915.37
Construction Co., Ltd.
Benxi Iron and Steel (Group)
Freight No 874,470.26
Construction Co., Ltd.
Benxi Iron and Steel (Group)
Industrial Development Co., Spare parts 14,032,862.42 300,000,000.00 No 26,936,414.43
Ltd.
Benxi Iron and Steel (Group)
Industrial Development Co., Raw materials 36,618,024.06 No 15,671,303.31
Ltd.
Benxi Iron and Steel (Group)
Industrial Development Co., Repair service 443,449.54 No 189,000.00
Ltd.
Benxi Iron and Steel (Group)
Industrial Development Co., Freight 2,169,588.19 No 1,916,795.13
Ltd.
Benxi Iron and Steel (Group)
Industrial Development Co., Project fee No 3,602,864.00
Ltd.
Raw material
Benxi Iron and Steel (Group) and
2,058,346.87 200,000,000.00 No 628,272.26
Construction Co., Ltd. supplementary
material
Benxi Iron and Steel (Group)
Project fee 17,144,271.62 No 3,707,364.60
Construction Co., Ltd.
Benxi Iron and Steel (Group)
Repair expense 5,748,486.32 No 2,555,910.39
Construction Co., Ltd.
Bengang Electric Co., Ltd. Raw materials 65,419,935.95 200,000,000.00 No 73,653,667.71
Bengang Electric Co., Ltd. Repair service No 2,206,804.72
Benxi High-tech Drilling Tools
Spare parts 71,251.70 No 79,567.24
Manufacturing Co., Ltd.
Benxi New Business
Repair service No 30,108.24
Development Co., Ltd.
Benxi New Business Raw material
No 1,134,041.61
Development Co., Ltd. and Meal
98
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
expenses
Liaoning Metallurgical
Training fee 580,509.17 20,000,000.00 No 1,261,635.37
Technician College
Benxi Iron and Steel Group
International Economic and Raw materials No 8,461,158,580.21
Trade Co., Ltd.
Benxi Iron and Steel Group
International Economic and Agency fee 37,145,227.62 500,000,000.00 No 36,480,975.97
Trade Co., Ltd.
Benxi Iron and Steel Group
International Economic and Port surcharges 96,460,418.24 No 105,447,143.23
Trade Co., Ltd.
Benxi Iron and Steel (Group)
Information Automation Co., Spare parts 4,990,030.05 130,000,000.00 No 931,359.00
Ltd.
Benxi Iron and Steel (Group)
Information Automation Co., Project fee 18,816,098.36 No 2,365,344.25
Ltd.
Benxi Iron and Steel (Group)
Information Automation Co., Repair service 910,634.86 No
Ltd.
Benxi Iron and Steel (Group)
Thermal Development Co., Heating costs 708,146.88 No 91,776.00
Ltd.
Benxi Iron and Steel (Group)
Thermal Development Co., Raw materials 35,759.46 No 20,160.00
Ltd.
Benxi Iron and Steel (Group)
Design fees No 409,620.74
Design and Research Institute
Benxi Beiying Iron and Steel
Raw materials 6,240,995,520.57 19,280,000,000.00 No 1,406,198,901.45
(Group) Co., Ltd.
Benxi Beiying Iron and Steel
Energy & Power 354,632,805.17 600,000,000.00 No 248,906,302.60
(Group) Co., Ltd.
Benxi Beiying Iron and Steel
Freight 3,501,207.61 No 2,265,401.79
(Group) Co., Ltd.
Benxi Beiying Iron and Steel
Labor cost 46,977,784.13 No 40,418,482.20
(Group) Co., Ltd.
Benxi Beiying Iron and Steel
Spare parts 2,823,257.54 No 11,548,340.88
(Group) Co., Ltd.
Raw material
Liaoning Hengtong
and
Metallurgical Equipment 66,215,321.16 250,000,000.00 No 34,815,337.28
supplementary
Manufacturing Co., Ltd.
material
Liaoning Hengtong Repair service No 669,321.70
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Metallurgical Equipment
Manufacturing Co., Ltd.
Raw material
Liaoning Hengtai Heavy and
1,158,044.41 41,000,000.00 No 707,939.24
Machinery Co., Ltd. supplementary
material
Liaoning Hengtai Heavy
Repair service 3,363,187.60 No 4,254,425.91
Machinery Co., Ltd.
Bengang Group Co., Ltd. Labor cost 1,947,299.50 100,000,000.00 No 87,933,408.03
Bengang Group Co., Ltd. House rental fee No 376,146.79
Ansteel Scrap Resources
Raw materials 55,204,556.15 700,000,000.00 No
(Anshan) Co., Ltd.
Chaoyang Branch of Ansteel
Scrap Resources (Anshan) Co., Raw materials 40,861,009.95 No
Ltd.
Ansteel Group International
Raw materials 8,328,324.66 1,200,000,000.00 No
Economic and Trade Co., Ltd.
Ansteel Construction Group
Project fee 21,192,660.55 30,000,000.00 No
Co., Ltd.
Ansteel Industrial Group
Metallurgical Machinery Co., Repair service 563,736.00 No
Ltd.
Angang Steel Co., Ltd. Raw materials 75,504,413.81 1,300,000,000.00 No
Ansteel Steel Processing and
Labor cost 11,353.84 No
Distribution (Dalian) Co., Ltd.
North Hengda Logistics Co.,
Freight 14,102,106.06 No
Ltd
Ansteel Group Mine Industry
Raw materials 238,405,486.63 1,600,000,000.00 No
Gong Chang Ling Co., Ltd.
Company as the seller
Currency unit: Yuan
Name The content of related party transactions Current period Previous period
Bengang Electric Co., Ltd. Energy & Power 2,966,904.10 394,612.01
Benxi Beiying Iron and Steel
Raw material and supplementary material 404,510,783.18 1,663,276,711.80
(Group) Co., Ltd.
Benxi Beiying Iron and Steel
Products 7,805,748.05 11,504,924.12
(Group) Co., Ltd.
Benxi Beiying Iron and Steel
Energy & Power 36,045,489.04 64,612,276.29
(Group) Co., Ltd.
Benxi Iron and Steel (Group)
Real Estate Development Co., Energy & Power 40,312.15 9,407.84
Ltd.
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Name The content of related party transactions Current period Previous period
Benxi Iron and Steel (Group)
Steel Processing and Energy & Power 4,553.41
Distribution Co., Ltd.
Benxi Iron and Steel (Group)
Machinery Manufacturing Co., Products 10,523,900.28 4,459,605.76
Ltd.
Benxi Iron and Steel (Group)
Machinery Manufacturing Co., Energy & Power 10,883,794.65 10,862,017.82
Ltd.
Benxi Iron and Steel (Group)
Machinery Manufacturing Co., Raw material and supplementary material 164,051.83
Ltd.
Benxi Iron and Steel (Group)
Energy & Power 7,783,309.92 3,775,753.79
Construction Co., Ltd.
Benxi Iron and Steel (Group)
Raw material and supplementary material 1,714,633.10
Construction Co., Ltd.
Benxi Iron and Steel (Group)
Energy & Power 368,746,319.95 334,269,066.87
Mining Co., Ltd.
Benxi Iron and Steel (Group)
Raw material and supplementary material 67,380,113.36 53,126,208.04
Mining Co., Ltd.
Benxi Iron and Steel (Group)
Freight 4,717,137.94 3,392,900.80
Mining Co., Ltd.
Benxi Iron and Steel (Group)
Products 1,298,986.47
Mining Co., Ltd.
Benxi Iron and Steel (Group)
Thermal Development Co., Energy & Power 17,198,224.54 36,494,765.92
Ltd.
Benxi Iron and Steel (Group)
Thermal Development Co., Raw material and supplementary material 13,425,740.25 8,935,674.95
Ltd.
Benxi Iron and Steel (Group)
Industrial Development Co., Energy & Power 1,312,651.56 4,136,805.19
Ltd.
Benxi Iron and Steel (Group)
Industrial Development Co., Products 5,013,408.82
Ltd.
Benxi Iron and Steel (Group)
Industrial Development Co., Raw material and supplementary material 6,608,404.18
Ltd.
Benxi Iron and Steel (Group)
Information Automation Co., Energy & Power 78,150.86 52,303.28
Ltd.
Benxi Iron and Steel (Group)
Energy & Power 508,442.14 595,504.47
Construction Co., Ltd.
Benxi Iron and Steel (Group)
Raw material and supplementary material 1,039,847.44
Construction Co., Ltd.
Benxi Iron and Steel (Group)
Energy & Power 2,923,049.91 225,878,060.70
Metallurgical Slag Co., Ltd.
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Name The content of related party transactions Current period Previous period
Benxi Iron and Steel (Group)
Raw material and supplementary material 6,434,506.40
Metallurgical Slag Co., Ltd.
Benxi Iron and Steel (Group)
Products 81,209,016.00
Metallurgical Slag Co., Ltd.
Benxi Iron and steel (Group)
Energy & Power 1,830,219.24 2,630,608.21
Co., Ltd
Benxi Iron and steel (Group)
Raw material and supplementary material 2,815,485.28 3,469,768.28
Co., Ltd
Benxi New Business
Energy & Power 56,559.67 116,321.08
Development Co., Ltd.
Dalian Boroller Steel Pipe Co.,
Products 10,411,580.55 6,555,953.09
Ltd.
Benxi Iron and Steel (Group)
Chint Building Materials Co., Energy & Power 13,104.81
Ltd.
Liaoning Hengtong
Metallurgical Equipment Raw material and supplementary material 2,432,735.65 355,855.50
Manufacturing Co., Ltd.
Liaoning Hengtong
Metallurgical Equipment Products 16,247,225.07
Manufacturing Co., Ltd.
Benxi Steel Stainless Steel
Cold Rolling Dandong Co., Products 2,954,071.01
Ltd.
Suzhou Bengang Industrial
Products 1,706,801.34 383,152,138.87
Co., Ltd.
Benxi Iron and Steel Group
Energy & Power 6,024.27 6,529.58
Finance Co., Ltd.
Bengang Group Co., Ltd. Energy & Power 54,228.93 614,550.80
Liaoning Hengtai Heavy
Energy & Power 59,737.59 174,308.00
Machinery Co., Ltd.
Ansteel Chemical Technology
Products 85,184,242.50
Co., Ltd.
Ansteel Energy Technology
Raw material and supplementary material 97,132.19
Co., Ltd.
Angang Green Resources
Products 14,016,402.04
Technology Co., Ltd
Benxi Weier surfacing
Energy & Power 23,434.19
Manufacturing Co., Ltd
Liaoning Tianyu Fire
Energy & Power 27,076.31
Engineering Co., Ltd
North Hengda Logistics Co.,
Products 732,332,869.53
Ltd
Benxi North Steel Pipe Co.,
Energy & Power 8,456.61
Ltd
Benxi North Iron Industry Co.,
Products 341,033,255.96
Ltd
Angang Steel Co., Ltd. Products 33,602,226.06
Angang Steel Casting Co., Ltd Products 87,707.40
Benxi Dongfeng Lake iron and
steel resources utilization Co., Products 11,652,917.70
Ltd
Benxi Dongfeng Lake iron and
steel resources utilization Co., Energy & Power 3,170,242.42
Ltd
Liaoning slag powder Co., Ltd Products 30,084,672.83
Changchun FAW Angang Steel
processing and Distribution Products 9,458,338.35
Co., Ltd
Pan Zhong Yi Hong Metalware
Products 8,131,733.60
(Chong Qiong) Co., Ltd
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(2) Lease information of related parties
Company as the lessor
Currency unit: Yuan
Lessee Lease capital category Lease income of 2021 Lease income of 2020
Benxi Steel & Iron
(Group) Steel & Iron 250,000.00
Warehouse and ancillary facilities
Process and Logistics Co.,
Ltd.
Benxi Steel Tendering Co., 250,917.43
Plants and ancillary facilities
Ltd
103
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Company as the lessee
Currency unit: Yuan
Rental expense for Rent Interest expense on lease Increased right-of-use
short-term leases and paid liability assets
leases of low-value
assets and variable
Lessor Lease capital category
lease payments not Previous Previous Current Previous
Current period Current period
included in the period period period period
measurement of lease
liabilities
Land use right
Benxi Steel & Iron 7,669,068.17 square meter.
27,625,616.70 27,625,616.70 19,500,054.00 19,800,104.64
(Group) Co., Ltd Land use right
42,920.00 square meter
Benxi Steel & Iron 2300 Hot rolling product line,
8,049,080.53 8,049,080.53 3,870,344.33 3,991,324.48
(Group) Co., Ltd related real estate
Benxi Beiying Steel & 1780 Hot rolling product line,
6,198,949.54 6,198,949.54 2,980,721.72 3,073,893.84
Iron (Group) Co., Ltd. related real estate
Bengang Group Co., Land use right 4,972,711.54 4,972,711.54 1,224,959.39 1,333,461.96
104
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Ltd. 728,282.30 square meter.
Notes:
1). According to the "Land Use Right Leasing Contract" and subsequent supplementary agreements signed between the Company and Bengang Steel (Group)on
April 7, 1997, December 30, 2005 and subsequent, the Company leases land from Benxi Steel (Group), with a monthly rent of 0.594 yuan per square meter. The
leased land is 7,669,068.17 square meters and the annual rent is 54,665.10 thousand yuan.
2). On August 14, 2019, the Company signed the "House Lease Agreement" with Benxi Steel (Group) and Beiying Iron and Steel Company, and leased the
houses and auxiliary facilities occupied by the 2300 hot rolling mill production line and the 1780 hot rolling mill production line. The lease term of the houses
and ancillary facilities is until December 31, 2038.
3). On July 15, 2019, the Company signed "Land Lease Agreement" with Bengang Group and Bengang Steel (Group) respectively, leased and used a total of 8
pieces of land from Bengang Group and Bengang Group Company, with leased areas of 42,920.00 square meters and 728,282.30 square meters. The lease term is
20 years, the rental price is 1.138 yuan per square meter per month.
105
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
(3) Information of Guarantee among related parties
Company as a guarantor:
None
Company as the warrantee
Amount of Starting date Ending date Has the guarantee
Warrantor
guarantee of Guarantee of Guarantee been fulfilled
Bengang Group Co.,
Ltd.&Benxi Iron and steel CNY 280,000,000.00 2016-3-30 2022-11-20 not fulfilled
(Group) Co., Ltd
Bengang Group Co.,
Ltd.&Benxi Iron and steel CNY 70,000,000.00 2017-2-27 2025-2-20 not fulfilled
(Group) Co., Ltd
Bengang Group Co., Ltd. CNY 34,292,930.00 2016-12-27 2024-6-21 not fulfilled
Bengang Group Co., Ltd. CNY 17,850,000.00 2016-12-27 2022-12-21 not fulfilled
Bengang Group Co., Ltd. CNY 17,850,000.00 2016-12-27 2023-6-21 not fulfilled
Bengang Group Co., Ltd. CNY 4,800,000.00 2016-12-27 2023-12-21 not fulfilled
Bengang Group Co., Ltd. CNY 15,771,790.00 2016-12-27 2022-12-21 not fulfilled
Bengang Group Co., Ltd. CNY 15,771,790.00 2016-12-27 2023-6-21 not fulfilled
Bengang Group Co., Ltd. CNY 15,771,790.00 2016-12-27 2023-12-21 not fulfilled
Bengang Group Co., Ltd. CNY 4,105,341.87 2015-12-28 2022-9-30 not fulfilled
Bengang Group Co., Ltd. CNY 4,105,341.87 2015-12-28 2023-3-31 not fulfilled
Bengang Group Co., Ltd. CNY 4,105,341.87 2015-12-28 2023-9-30 not fulfilled
Bengang Group Co., Ltd. CNY 4,105,341.87 2015-12-28 2024-3-31 not fulfilled
Bengang Group Co., Ltd. CNY 4,105,341.87 2015-12-28 2024-9-30 not fulfilled
Bengang Group Co., Ltd. CNY 4,105,341.87 2015-12-28 2025-3-31 not fulfilled
Bengang Group Co., Ltd. CNY 4,105,342.36 2015-12-28 2025-9-30 not fulfilled
Bengang Group Co., Ltd. CNY 14,662,676.13 2015-12-28 2022-10-30 not fulfilled
Bengang Group Co., Ltd. CNY 3,065,150.02 2015-12-28 2023-4-28 not fulfilled
Bengang Group Co., Ltd. CNY 11,597,526.11 2015-12-28 2023-4-30 not fulfilled
Bengang Group Co., Ltd. CNY 14,662,676.13 2015-12-28 2023-10-30 not fulfilled
Bengang Group Co., Ltd. CNY 14,662,676.13 2015-12-28 2024-4-30 not fulfilled
Bengang Group Co., Ltd. CNY 14,662,676.13 2015-12-28 2024-10-30 not fulfilled
Bengang Group Co., Ltd. CNY 6,507,003.58 2015-12-28 2025-4-30 not fulfilled
Bengang Group Co., Ltd. CNY 14,662,676.69 2015-12-28 2025-10-30 not fulfilled
Bengang Group Co., Ltd. CNY 6,507,003.65 2015-12-28 2026-4-30 not fulfilled
Bengang Group Co., Ltd. CNY 7,948,057.33 2015-12-28 2022-12-30 not fulfilled
Bengang Group Co., Ltd. CNY 7,948,057.33 2015-12-28 2023-6-30 not fulfilled
Bengang Group Co., Ltd. CNY 7,948,057.33 2015-12-28 2023-12-29 not fulfilled
Bengang Group Co., Ltd. CNY 7,948,057.33 2015-12-28 2024-6-28 not fulfilled
Bengang Group Co., Ltd. CNY 7,948,057.33 2015-12-28 2024-12-31 not fulfilled
Bengang Group Co., Ltd. CNY 7,948,058.03 2015-12-28 2025-6-30 not fulfilled
Bengang Group Co., Ltd. CNY 8,155,672.56 2015-12-28 2025-4-30 not fulfilled
Bengang Group Co., Ltd. CNY 6,434,212.86 2015-12-28 2022-8-29 not fulfilled
Bengang Group Co., Ltd. CNY 6,434,212.86 2015-12-28 2023-2-28 not fulfilled
106
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Amount of Starting date Ending date Has the guarantee
Warrantor
guarantee of Guarantee of Guarantee been fulfilled
Bengang Group Co., Ltd. CNY 6,434,212.86 2015-12-28 2023-8-28 not fulfilled
Bengang Group Co., Ltd. CNY 6,434,212.86 2015-12-28 2024-2-28 not fulfilled
Bengang Group Co., Ltd. CNY 6,434,212.86 2015-12-28 2024-8-28 not fulfilled
Bengang Group Co., Ltd. CNY 6,434,212.86 2015-12-28 2025-2-28 not fulfilled
Bengang Group Co., Ltd. CNY 6,434,212.86 2015-12-28 2025-8-29 not fulfilled
Bengang Group Co., Ltd. CNY 420,000,000.00 2021-11-29 2022-11-29 not fulfilled
Bengang Group Co., Ltd. CNY 200,000,000.00 2022-2-25 2023-2-25 not fulfilled
Bengang Group Co.,
Ltd.&Benxi Iron and steel CNY 588,000,000.00 2021-9-30 2022-9-15 not fulfilled
(Group) Co., Ltd
Bengang Group Co.,
Ltd.&Benxi Iron and steel CNY 200,000,000.00 2021-10-15 2022-10-14 not fulfilled
(Group) Co., Ltd
Bengang Group Co.,
Ltd.&Benxi Iron and steel CNY 200,000,000.00 2021-10-20 2022-10-19 not fulfilled
(Group) Co., Ltd
Bengang Group Co.,
Ltd.&Benxi Iron and steel CNY 200,000,000.00 2021-10-21 2022-10-20 not fulfilled
(Group) Co., Ltd
Bengang Group Co.,
Ltd.&Benxi Iron and steel CNY 200,000,000.00 2021-10-13 2022-8-10 not fulfilled
(Group) Co., Ltd
Bengang Group Co.,
Ltd.&Benxi Iron and steel CNY 200,000,000.00 2021-7-9 2022-7-8 not fulfilled
(Group) Co., Ltd
Bengang Group Co.,
Ltd.&Benxi Iron and steel CNY 200,000,000.00 2021-7-13 2022-7-12 not fulfilled
(Group) Co., Ltd
Bengang Group Co., Ltd. CNY 740,000,000.00 2021-12-30 2022-12-30 not fulfilled
Bengang Group Co., Ltd. CNY 1,342,280.00 2021-7-30 2022-7-25 not fulfilled
6. Receivables and payables of the related parties
(1) Receivables of the Company
Currency unit: Yuan
30 June 2022 31 December 2021
Provision Provision
Items Name Carrying Carrying
for bad for bad
amount amount
debts debts
Notes Benxi Beiying Iron 1,146,019,625.74
107
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
30 June 2022 31 December 2021
Provision Provision
Items Name Carrying Carrying
for bad for bad
amount amount
debts debts
receivable and Steel (Group) Co.,
Ltd.
Benxi Iron and Steel
Notes
(Group) Mining Co., 6,906,467.75
receivable
Ltd.
Accounts
Suzhou Bengang
receivable 6,580,000.00
Industrial Co., Ltd.
financing
Accounts Benxi Beiying Iron
receivable and Steel (Group) Co., 2,300,000.00
financing Ltd.
Accounts
Benxi Iron and steel
receivable 2,300,000.00
(Group) Co., Ltd
financing
Benxi Iron and Steel
Accounts Group International
30,777,943.03 307,779.43
receivable Economic and Trade
Co., Ltd.
Benxi Iron and Steel
Accounts
(Group) Thermal 7,007,076.55 70,070.77
receivable
Development Co., Ltd.
Angang Green
Accounts
Resources Technology 5,865,959.31 58,659.59
receivable
Co., Ltd
Benxi Beiying Iron
Accounts
and Steel (Group) Co., 60,369,509.72 603,695.10
receivable
Ltd.
Benxi Iron and steel
Accounts
(Group) Mine 5,322,812.35 53,228.12
receivable
Construction
108
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
30 June 2022 31 December 2021
Provision Provision
Items Name Carrying Carrying
for bad for bad
amount amount
debts debts
Engineering Co., Ltd
Benxi Iron and steel
Accounts (Group) mining
31,314,019.74 313,140.20
receivable Liaoyang jiajiabao
iron ore Co., Ltd
Liaoning Hengtong
Metallurgical
Accounts
Equipment 390,333.56 3,903.34
receivable
Manufacturing Co.,
Ltd.
Benxi Iron and Steel
Group International
Prepayments 562,083,080.63
Economic and Trade
Co., Ltd.
Benxi Iron and Steel
(Group) Machinery
Prepayments 74,983,578.22 46,764,418.62
Manufacturing Co.,
Ltd.
Benxi New Business
Prepayments 2,262,005.64 2,525,240.41
Development Co., Ltd.
Liaoning Hengtong
Metallurgical
Prepayments Equipment 365,010.53
Manufacturing Co.,
Ltd.
Prepayments Angang Steel Co., Ltd. 1,465,776.37
Ansteel Construction
Prepayments 4,722,050.00
Group Co., Ltd.
North Hengda
Prepayments 30,844.04
Logistics Co., Ltd
109
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
30 June 2022 31 December 2021
Provision Provision
Items Name Carrying Carrying
for bad for bad
amount amount
debts debts
Benxi Beiying Iron
Prepayments and Steel (Group) Co., 1,306,446,662.94
Ltd.
Benxi Iron and steel
(Group)
Prepayments Electromechanical 30,115,564.35
Installation
Engineering Co., Ltd
Benxi Iron and Steel
Prepayments (Group) Construction 25,413,663.14
Co., Ltd.
Benxi Xinhe Mining
Prepayments 336,181.55
Co., Ltd
Liaoning Hengtai
Prepayments Heavy Machinery Co., 3,915,532.06
Ltd.
Benxi Iron and Steel
Other
(Group) Real Estate 150,931.19 1,509.31 2,798,975.71 2,585,594.69
receivables
Development Co., Ltd.
Other Bengang Group Co.,
35,367.45 1,403,512.36
receivables Ltd.
Other Benxi Iron and Steel
602,040.84 6,020.41
receivables Tendering Co., Ltd.
Other
Angang Steel Co., Ltd. 421,142.66 421,142.66
receivables
Benxi Iron and Steel
Other (Group) Chint
270,462.55 211,172.50
receivables Building Materials
Co., Ltd.
Other Liaoning Metallurgical 58,042.46 58,042.46
110
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
30 June 2022 31 December 2021
Provision Provision
Items Name Carrying Carrying
for bad for bad
amount amount
debts debts
receivables Technician College
Benxi Iron and Steel
Other Group International
receivables Economic and Trade
Co., Ltd.
Other Ansteel Construction
97,949.22 979.49
receivables Group Co., Ltd.
Other North Hengda
643,182.28
receivables Logistics Co., Ltd
Benxi Iron and steel
(Group)
Other
Electromechanical 93,019.02 930.19
receivables
Installation
Engineering Co., Ltd
Benxi Iron and steel
Other (Group) mining and
59,814.27 598.14
receivables Mineral Resources
Development Co., Ltd
Benxi Iron and steel
Other (Group) mining
902,791.24 9,027.91
receivables Yanjiagou Limestone
Mine Co., Ltd
Benxi Iron and Steel
Other
(Group) Thermal 325,208.41 3,252.08
receivables
Development Co., Ltd.
Other
Ansteel Construction
non-current 9,222,050.00
Group Co., Ltd.
assets
(2) Payables of the Company
Currency unit: Yuan
111
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
31 December
Items Name 30 June 2022
2021
Benxi Iron and Steel Group International
Notes payable 2,591,000,000.00
Economic and Trade Co., Ltd.
Benxi Iron and Steel (Group) Industrial
Notes payable 5,981,899.63 27,323,238.23
Development Co., Ltd.
Liaoning Metallurgical Vocational and
Notes payable 2,891,901.05
Technical College
Benxi Iron and Steel (Group) Construction
Notes payable 2,441,547.34
Co., Ltd.
Liaoning Metallurgical Technician
Notes payable 1,087,201.26
College
Ansteel Industrial Group Metallurgical
Notes payable 616,291.83
Machinery Co., Ltd.
Liaoning Hengtai Heavy Machinery Co.,
Notes payable 532,627.10
Ltd.
Notes payable Bengang Electric Co., Ltd. 371,305.57
Liaoning Hengtong Metallurgical
Notes payable 63,696.00
Equipment Manufacturing Co., Ltd.
Benxi Iron and Steel (Group) Mining Co.,
Notes payable 129,288,496.97 30,916.80
Ltd.
Benxi Iron and Steel (Group) Machinery
Notes payable 12,168,774.12 15,544.28
Manufacturing Co., Ltd.
Benxi Beiying iron and steel (Group) Co.,
Notes payable 203,366,694.80
Ltd
Benxi Iron and steel (Group) equipment
Notes payable 68,040.00
Engineering Co., Ltd
Benxi Iron and steel (Group)
Notes payable Electromechanical Installation 761,447.53
Engineering Co., Ltd
Benxi Iron and steel (Group) construction
Notes payable 110,410.00
advanced decoration Co., Ltd
Benxi Iron and steel (Group) Industrial
Notes payable 1,129,395.64
Development electromechanical
112
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
31 December
Items Name 30 June 2022
2021
installation Co., Ltd
Ansteel Industrial Group Metallurgical
Notes payable 701,991.03
Machinery Co., Ltd.
Liaoning Hengyi Financial Leasing Co.,
Notes payable 87,515,323.96
Ltd.
Benxi Iron and Steel (Group)
Notes payable 27,644,602.07
Metallurgical Slag Co., Ltd.
Benxi Iron and Steel (Group) Mining Co.,
Accounts payable 227,142,227.42 227,930,805.86
Ltd.
Liaoning Hengyi Financial Leasing Co.,
Accounts payable 40,106,086.75 243,646,365.75
Ltd.
Benxi Iron and Steel (Group) Construction
Accounts payable 177,332,809.50
Co., Ltd.
Benxi Iron and Steel (Group) Construction
Accounts payable 5,484,676.22 127,382,098.50
Co., Ltd.
Benxi Beiying Iron and Steel (Group) Co.,
Accounts payable 158,531,101.75
Ltd.
Benxi Iron and Steel (Group)
Accounts payable 37,863,244.79 158,531,101.75
Metallurgical Slag Co., Ltd.
Benxi Iron and Steel (Group) Industrial
Accounts payable 11,871,384.19 65,505,709.65
Development Co., Ltd.
Benxi Iron and Steel (Group) Information
Accounts payable 21,476,707.45 64,470,595.80
Automation Co., Ltd.
Accounts payable Bengang Electric Co., Ltd. 18,627,189.71
Liaoning Hengtai Heavy Machinery Co.,
Accounts payable 747,497.91 17,366,942.72
Ltd.
Accounts payable Bengang Group Co., Ltd. 53,142.53 16,260,041.69
Benxi Iron and Steel Group International
Accounts payable 11,684,948.95
Economic and Trade Co., Ltd.
Liaoning Metallurgical Technician
Accounts payable 11,290,066.24
College
Accounts payable Benxi Iron and Steel (Group) Machinery 2,749,458.39 6,869,554.14
113
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
31 December
Items Name 30 June 2022
2021
Manufacturing Co., Ltd.
Benxi Steel Stainless Steel Cold Rolling
Accounts payable 6,108,342.90
Dandong Co., Ltd.
Ansteel Scrap Resources (Anshan) Co.,
Accounts payable 22,080,250.93 4,257,477.87
Ltd.
Liaoning Metallurgical Vocational and
Accounts payable 3,509,300.42
Technical College
Liaoning Hengtong Metallurgical
Accounts payable 7,430,501.05 2,527,096.00
Equipment Manufacturing Co., Ltd.
Benxi Iron and Steel (Group) Thermal
Accounts payable 2,430,350.86
Development Co., Ltd.
Accounts payable Ansteel Heavy Machinery Co., Ltd. 581,385.00 1,572,500.00
Accounts payable Angang Electric Co., Ltd. 32,700.00 1,231,700.00
Ansteel Industrial Group Metallurgical
Accounts payable 581,385.00 1,125,059.03
Machinery Co., Ltd.
Accounts payable Angang Steel Rope Co., Ltd. 894,924.67 913,473.62
Benxi Iron and Steel (Group) Real Estate
Accounts payable 615,214.61
Development Co., Ltd.
Ansteel Mining Machinery Manufacturing
Accounts payable 304,530.41 304,530.41
Co., Ltd.
Benxi High-tech Drilling Tools
Accounts payable 221,233.55
Manufacturing Co., Ltd.
Benxi New Business Development Co.,
Accounts payable 286,600.62 67,596.20
Ltd.
Benxi Iron and Steel (Group) Engineering
Accounts payable 419,142.00 39,142.00
Construction Supervision Co., Ltd.
Benxi Iron and Steel (Group) Chint
Accounts payable 2,362.00
Building Materials Co., Ltd.
Angang Group (Anshan) railway
Accounts payable transportation equipment manufacturing 32,000.02
Co., Ltd
114
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
31 December
Items Name 30 June 2022
2021
Ansteel Group Engineering Technology
Accounts payable 45,000.00
Development Co., Ltd.
Ansteel Group International Economic
Accounts payable 4,519,076.99
and Trade Co., Ltd.
Accounts payable North Hengda Logistics Co., Ltd 9,178,783.42
Accounts payable Benxi Aike hydraulic seal Co., Ltd 6,108,773.76
Accounts payable Benxi Beitai Casting Pipe Co., Ltd 257,454.77
Benxi Dongfeng Lake iron and steel
Accounts payable 23,458,449.16
resources utilization Co., Ltd
Benxi Iron and steel (Group) No.2
Accounts payable 8,542,384.18
Construction Engineering Co., Ltd
Benxi Iron and steel (Group) Engineering
Accounts payable 75,000.00
Quality Inspection Co., Ltd
Benxi Iron and steel (Group) Guomao
Accounts payable 6,090,961.68
Tengda Co., Ltd
Benxi Iron and steel (Group)
Accounts payable Electromechanical Installation 145,364.13
Engineering Co., Ltd
Benxi Iron and steel (Group) construction
Accounts payable 4,802,498.48
advanced decoration Co., Ltd
Benxi Iron and steel (Group) Mine
Accounts payable 164,325.29
Construction Engineering Co., Ltd
Benxi Iron and steel (Group) mining
Accounts payable 21,496.60
Honghe Industrial Development Co., Ltd
Benxi Iron and steel (Group) mining
Accounts payable 1,637,670.23
Liaoyang jiajiabao iron ore Co., Ltd
Benxi Iron and steel (Group) road and
Accounts payable 2,610,941.87
Bridge Construction Engineering Co., Ltd
Benxi Iron and steel (Group) Industrial
Accounts payable Development electromechanical 1,010,472.18
installation Co., Ltd
Accounts payable Benxi Iron and steel (Group) Co., Ltd 115,299.07
115
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
31 December
Items Name 30 June 2022
2021
Accounts payable Benxi Xihu metallurgical burden Co., Ltd 29,131,307.14
Benxi Weier surfacing Manufacturing Co.,
Accounts payable 26,103.44
Ltd
Liaoning Tianyu Fire Engineering Co.,
Accounts payable 459,355.39
Ltd
Liaoning Yitong Machinery
Accounts payable 7,014,400.87
Manufacturing Co., Ltd
Contract liabilities/Other
Suzhou Bengang Industrial Co., Ltd. 23,506,109.92
current liabilities
Contract liabilities/Other Delin Land Port Supply Chain Service
20,392,114.80
current liabilities Co., Ltd.
Contract liabilities/Other
Bengang Group Co., Ltd. 15,675,115.92
current liabilities
Contract liabilities/Other Panzhong Yihong Metal Products
7,227,779.60
current liabilities (Chongqing) Co., Ltd.
Contract liabilities/Other
Dalian Boroller Steel Pipe Co., Ltd. 2,966,766.93 2,361,852.95
current liabilities
Contract liabilities/Other Benxi Iron and Steel (Group)
0.01 1,123,998.85
current liabilities Metallurgical Slag Co., Ltd.
Contract liabilities/Other Benxi Iron and Steel (Group) Industrial
745,498.28
current liabilities Development Co., Ltd.
Contract liabilities/Other
Ansteel Energy Technology Co., Ltd. 445,249.81
current liabilities
Contract liabilities/Other Benxi Steel Stainless Steel Cold Rolling
377,261.08
current liabilities Dandong Co., Ltd.
Contract liabilities/Other Tianjin Angang Steel Processing and
281,521.20 260,000.00
current liabilities Distribution Co., Ltd.
Contract liabilities/Other Liaoning Hengtong Metallurgical
199,879.86
current liabilities Equipment Manufacturing Co., Ltd.
Contract liabilities/Other
Ansteel Chemical Technology Co., Ltd. 13,044,197.29 127,391.30
current liabilities
Contract liabilities/Other Benxi Iron and Steel Group International 100,971.10
116
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
31 December
Items Name 30 June 2022
2021
current liabilities Economic and Trade Co., Ltd.
Contract liabilities/Other Ansteel Steel Processing and Distribution
3,381,695.06
current liabilities (Dalian) Co., Ltd.
Contract liabilities/Other Angang Steel Distribution (Hefei) Co.,
5,567.11
current liabilities Ltd
Contract liabilities/Other
Angang Steel Co., Ltd. 12,076.46
current liabilities
Contract liabilities/Other
North Hengda Logistics Co., Ltd 54,781,949.15
current liabilities
Contract liabilities/Other Benxi Dongfeng Lake iron and steel
5,046,997.07
current liabilities resources utilization Co., Ltd
Contract liabilities/Other Benxi Iron and steel (Group) Mine
720.00
current liabilities Construction Engineering Co., Ltd
Contract liabilities/Other Benxi Iron and steel (Group) Industrial
60.84
current liabilities Development Co., Ltd. recycling branch
Contract liabilities/Other
Liaoning slag powder Co., Ltd 328,394.92
current liabilities
Contract liabilities/Other Liaoning Metallurgical Vocational and
0.01
current liabilities Technical College
Contract liabilities/Other Changchun FAW Angang Steel processing
8,971.58
current liabilities and Distribution Co., Ltd
Other payables Benxi Iron and steel (Group) Co., Ltd 228,643,749.38 249,739,175.64
Benxi Iron and Steel Group International
Other payables 475,752.29 28,083,978.93
Economic and Trade Co., Ltd.
Benxi Iron and Steel (Group) Construction
Other payables 4,804,778.00 24,834,667.16
Co., Ltd.
Benxi Iron and Steel (Group) Industrial
Other payables 2,296,945.30 18,283,705.72
Development Co., Ltd.
Benxi Iron and Steel (Group) Steel
Other payables 16,869,219.13
Processing and Distribution Co., Ltd.
Guangzhou Free Trade Zone Benxi Steel
Other payables 2,674,436.85
Sales Co., Ltd.
117
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
31 December
Items Name 30 June 2022
2021
Benxi Iron and Steel (Group) Thermal
Other payables 159,312.00 2,187,450.17
Development Co., Ltd.
Benxi New Business Development Co.,
Other payables 3,854,296.94 2,069,075.26
Ltd.
Benxi Iron and Steel (Group) Real Estate
Other payables 1,435,884.63
Development Co., Ltd.
Ansteel Scrap Resources (Anshan) Co.,
Other payables 500,000.00 500,000.00
Ltd.
Liaoning Metallurgical Technician
Other payables 388,880.00 190,513.04
College
Other payables Bengang Group Co., Ltd. 2,733,456.27 155,733.55
Benxi Iron and Steel (Group) Machinery
Other payables 10,082.30
Manufacturing Co., Ltd.
Other payables Ansteel Construction Group Co., Ltd. 10,000.00
Other payables Angang Metal Structure Co., Ltd 10,000.00
Angang Shenyang steel processing and
Other payables 125,815.85
Distribution Co., Ltd
Angang industrial group (Anshan)
Other payables equipment operation and maintenance 3,917,572.97
Co., Ltd
Other payables North Hengda Logistics Co., Ltd 4,623,540.70
Benxi Beiying iron and Steel Group
Other payables 6,126,699.18
Import and Export Co., Ltd
Benxi Dongfeng Lake iron and steel
Other payables 210,000.00
resources utilization Co., Ltd
Pengcheng branch of Benxi Dongfeng
Other payables Lake iron and steel resources utilization 132,932.51
Co., Ltd
Benxi Iron and steel (Group) No.2
Other payables 2,000.00
Construction Engineering Co., Ltd
Other payables Benxi Iron and steel (Group) No.1 440,385.06
118
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
31 December
Items Name 30 June 2022
2021
Construction Engineering Co., Ltd
Benxi Iron and steel (Group) Guomao
Other payables 24,432,265.52
Tengda Co., Ltd
Benxi Iron and steel (Group)
Other payables Electromechanical Installation 1,805,011.50
Engineering Co., Ltd
Benxi Iron and steel (Group) construction
Other payables 1,035,743.27
advanced decoration Co., Ltd
Benxi Iron and steel (Group) Mine
Other payables 2,000.00
Construction Engineering Co., Ltd
Benxi Iron and steel (Group) mining and
Other payables 20,000.00
Mineral Resources Development Co., Ltd
Benxi Iron and Steel (Group) Mining Co.,
Other payables 2,324.00
Ltd.
Benxi Iron and steel (Group) road and
Other payables 30,000.00
Bridge Construction Engineering Co., Ltd
Benxi Iron and steel (Group) Industrial
Other payables Development electromechanical 1,465,841.15
installation Co., Ltd
Benxi Iron and Steel (Group) Information
Other payables 4,052,084.86
Automation Co., Ltd.
Other payables Benxi Xihu metallurgical burden Co., Ltd 100,000.00
Other payables Dalian Boroller Steel Pipe Co., Ltd. 20,000.00
Liaoning Hengtai Heavy Machinery Co.,
Other payables 376,674.00
Ltd.
Liaoning Hengtong Metallurgical
Other payables 68,976.00
Equipment Manufacturing Co., Ltd.
Liaoning Tianyu Fire Engineering Co.,
Other payables 57,232.00
Ltd
Liaoning Metallurgical Vocational and
Other payables 396,278.00
Technical College
119
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
31 December
Items Name 30 June 2022
2021
Liaoning Yitong Machinery
Other payables 4,409.00
Manufacturing Co., Ltd
7. Other related party transactions
(1) The main contents of the centralized management of funds that the company
participates in and implements are as follows:
In December 2021, after negotiation with Ansteel Group Finance Co., Ltd. (hereinafter
referred to as Ansteel Finance Co., Ltd.), the Financial Services Agreement (2022-2024)
was signed to agree on the agreement between the company and its subsidiaries and
Ansteel in 2022, 2023, and 2024. Relevant financial business terms and relevant
transaction amount caps between financial companies. The agreement stipulates that the
maximum daily deposit balance of the company and its holding subsidiaries in Ansteel
Finance Company in the next twelve months is 4.5 billion yuan, and the maximum credit
limit of loans, bills and other forms is 5 billion yuan, and Ansteel Finance Company
provides entrusted loans to the company. The maximum limit is 2 billion yuan.
(2) Funds collected by the company to the group
Funds deposited by the company directly into the finance company without being collected
into the account of the parent company of the group
Items 30 June 2022 31 December 2021
Amount Provision Amount Provision
Cash at bank (deposited in Ansteel
395,029.86 442,965.63
Group Finance Co., Ltd.)
Cash at bank (deposited in
Bengang Group Finance Co., Ltd.)
Total 395,029.86 442,965.63
(3) Funds collected by the company to the group
Items 30 June 2022 31 December 2021
Other payables 83,835,000.00 82,081,562.50
Total 83,835,000.00 82,081,562.50
Dalian Benruitong Automotive Materials Technology Co., Ltd., a subsidiary of the
company, borrowed RMB 75,000,000.00 from Benxi Iron and Steel (Group) Co., Ltd. As
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
of June 30, 2022, the company's unpaid interest was RMB8,835,000.00 (as of December
31, 2021, the company's unpaid interest was RMB7,081,562.50).
XI. Commitments and Contingencies
1. Commitments
(1) Lease contracts in progress or to be performed and their financial impacts
According to the "Land Use Right Leasing Contract" and subsequent supplementary
agreements signed by the company and Benxi Steel (Group) on April 7, 1997, December
30, 2005, the Company leased land from Benxi Steel (Group). The monthly rent is 0.594
yuan per square meters, the leased land area is 7,669,068.17 square meters, and the annual
rent is 54,665,100 yuan.
On August 14, 2019, the Company signed the "House Lease Agreement" with Benxi Steel
(Group) and Beiying Steel respectively, leasing the houses and auxiliary facilities occupied
by 2300 and 1780 hot rolling mill production lines, and the lease term ends on December
31, 2038. The rental fee is based on the depreciation of the original rent value and the
national additional tax, plus reasonable profit negotiation. The estimated annual rent is not
more than 20 million yuan and 18 million yuan respectively. The rental fee is settled and
paid monthly. This related party transaction has been reviewed and approved at the fourth
meeting of the eighth board of directors of the Company.
On July 15, 2019, the Company signed "Land Lease Agreement" with Bengang Group and
Benxi Steel (Group) respectively, and leased and used a total of 8 pieces of land of the two
companies. The lease areas are 42,920.00 square meters and 728,282.30 square meters
respectively, with a lease term of 20 years, and a rental price of 1.138 yuan per square
meter per month. After the agreement comes into effect, considering the national law and
policy adjustments every five years, both parties should determine whether the rent needs
to be adjusted according to the pricing basis stipulated in Article 2 of this agreement. This
related party transaction has been reviewed and approved at the third meeting of the eighth
board of directors of the company.
2. Contingencies
As at June 30, 2022, no significant contingencies need to be disclosed.
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
XII. Subsequent events
1. Other subsequent events
Not applicable.
XIII. Other significant events
1. Other important matters that have an impact on investor decisions
(1) The controlling shareholder pledges the Company's shares
As of the balance sheet date, the Company's controlling shareholder Benxi Iron and Steel (Group)
Co., Ltd. held 2,409,628,094 shares of the Company, of which 110,000,000 shares were in pledged
status and 102,100,000 shares were in restricted sales and frozen status.
XIV. Notes to the financial statements of parent company
1. Notes receivable
(1) Notes receivable disclosed by category
Items 30 June 2022 31 December 2021
Bank acceptance bill
Commercial acceptance bill 141,318,446.72 1,514,416,395.80
Total 141,318,446.72 1,514,416,395.80
(2) The company has no pledged notes receivable at the end of period
(3) No Notes receivable which have been endorsed or discounted by the company and have not
yet matured at the end of period
(4) No Notes receivable has been transferred into accounts receivable due to inability of drawer to
meet acceptance bill at the end of period
2. Accounts receivable
(1) Accounts receivable disclosed by aging
Items 30 June 2022 31 December 2021
Within 1 year (inclusive) 398,363,651.65 352,756,383.14
1-2 years (inclusive) 32,839,122.15 1,380,655.78
2-3 years (inclusive) 1,380,655.78 1,942,837.68
Over 3 years 180,879,679.02 180,383,550.49
Sub-total 613,463,108.60 536,463,427.09
Less: Provision for bad debts 185,896,313.56 182,831,863.67
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
Total 427,566,795.04 353,631,563.42
(2) Accounts receivable disclosed by category
123
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Financial Report
30 June 2022 31 December 2021
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Items
Percentag Bad debts Book value Percenta Bad debts Book value
Amount Amount Amount Amount
e (%) ratio (%) ge (%) ratio (%)
Provision for Bad
47,762,337.18 7.79 47,762,337.18 100.00 47,762,337.18 8.90 47,762,337.18 100.00
Dept individually
Provision for Bad
565,700,771.42 92.21 138,133,976.38 24.42 427,566,795.04 488,701,089.91 91.10 135,069,526.49 27.64 353,631,563.42
Dept by portfolio
Include:
Portfolio 1: Aging 400,868,081.60 65.35 138,133,976.38 34.46 262,734,105.22 328,112,713.51 61.16 135,069,526.49 41.17 193,043,187.02
Portfolio 2:
Combined related 164,832,689.82 26.86 164,832,689.82 160,588,376.40 29.93 160,588,376.40
party
Total 613,463,108.60 100.00 185,896,313.56 427,566,795.04 536,463,427.09 100.00 182,831,863.67 353,631,563.42
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Report
30 June 2022
Items Accounts Provision for Bad debts
Reason
receivable bad debts ratio（%）
Benxi Nanfen
Benxi Nanfen Xinhe Metallurgical
47,762,337.18 47,762,337.18 100.00 Xinhe has halt
Co., Ltd.
operation.
Total 47,762,337.18 47,762,337.18
Accounts receivable tested for impairment by portfolio:
Portfolio tested by aging
30 June 2022
Items
Carrying amount Provision for bad debts Bad debts ratio (%)
Within 1 year 234,418,556.23 2,344,185.56 1.00
1-2 years 32,839,122.15 3,283,912.22 10.00
2-3 years 1,380,655.78 276,131.16 20.00
Over 3 years 132,229,747.44 132,229,747.44 100.00
Total 400,868,081.60 138,133,976.38
(3) The provision for bad debts accrued, reversed or recovered in the current period.
The amount of bad debt provision accrued in the current period is RMB 3,064,449.89
(4) No accounts receivable has been written off this year.
(5) Top five debtors at the year-end
30 June 2022
Company Percentage of total Provision for
Amount
accounts receivable (%) bad debts
The first 163,945,095.42 26.72
The second 62,675,196.98 10.22 626,751.97
The third 53,498,537.83 8.72 534,985.38
The fourth 47,762,337.18 7.79 47,762,337.18
The fifth 42,236,411.19 6.88 2,878,318.66
Total 370,117,578.60 60.33 51,802,393.19
(6) There are no accounts receivable derecognized due to the transfer of financial assets in the
current period.
(7) There is no assets and liabilities formed by continued involvement due to the transfer of
Account receivables.
3. Accounts receivable financing
(1) Details of accounts receivable financing
Items 30 June 2022 31 December 2021
Notes receivable 1,504,640,362.79 4,143,431,412.08
Include: Bank acceptance bill 1,504,640,362.79 1,876,753,316.46
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Report
Commercial acceptance bill 2,266,678,095.62
Total 1,504,640,362.79 4,143,431,412.08
Other information: The "receivable financing" item reflects the notes and accounts receivable that
are measured at fair value at the balance sheet date and whose changes are included in other
comprehensive income.
(2) At the end of the period, the company has no commercial bills pledged in accounts receivable
financing
(3) At the end of the period, the company's endorsed or discounted commercial bills in accounts
receivable financing accounting and not yet matured on the balance sheet date are as follows
Items Derecognized amount Not derecognized amount
Bank acceptance bill 17,940,518,873.62
Commercial acceptance bill
Total 17,940,518,873.62
(4) No Notes receivable has been transferred into accounts receivable due to inability of drawer to
meet acceptance bill at the end of period
4. Other receivables
Item 30 June 2022 31 December 2021
Interest receivables 2,014,931.61
Other receivables 171,552,044.44 266,591,116.91
Total 171,552,044.44 268,606,048.52
(1) Interest receivables
1) Interest receivable disclosed by category
Items 30 June 2022 31 December 2021
Deposit interest 2,014,931.61
Subtotal 2,014,931.61
Less: provision for bad debt
Total 2,014,931.61
2) There is no significant provision for overdue interest and bad debt provision.
3) There is no provisions for interest receivable
(2) Other receivables disclosed by aging
Items 30 June 2022 31 December 2021
Within 1 year (inclusive) 155,295,417.96 144,080,381.27
1-2 years (inclusive) 14,118,123.37 4,002,692.25
2-3 years (inclusive) 2,033,318.60 3,776,577.88
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Report
Over 3 years 69,951,933.09 186,249,689.29
Sub-total 241,398,793.02 338,109,340.69
Less: Provision for bad
69,846,748.58 71,518,223.78
debts
Total 171,552,044.44 266,591,116.91
1) Other receivables disclosed by nature
Nature 30 June 2022 31 December 2021
Receivable and payable 230,864,964.65 327,876,947.80
Other 10,533,828.37 10,232,392.89
Total 241,398,793.02 338,109,340.69
2) Provision for bad debt provision
Stage one Stage two Stage three
Provision for bad 12-month Lifetime expected Lifetime expected Total
debts expected credit credit losses (no credit losses (credit
losses credit impairment) impairment occurred)
Opening balance 526,800.70 6,305,393.56 64,686,029.52 71,518,223.78
--Transfer to Stage
-141,181.23 141,181.23
two
--Transfer to Stage
-755,315.57 755,315.57
three
Current period
347,745.00 -3,872,783.16 1,853,562.96 -1,671,475.20
provision
Ending balance 733,364.47 1,818,476.06 67,294,908.05 69,846,748.58
3) Top five debtors at the year-end
Compa Nature or Percentage of total Provision for bad
Amount Aging
ny content other receivables (%) debts
The Receivable and
2,261,360.00 Over 3 years 0.94 2,261,360.00
First payable
The Receivable and
1,402,127.96 Over 3 years 0.58 1,402,127.96
Second payable
The Receivable and
1,740,000.00 Over 3 years 0.72
Third payable
The Receivable and
1,492,967.97 Within 1 year to 3 years 0.62 1,198,020.34
Fourth payable
The Receivable and
1,380,203.32 Within 1 year to 2 years 0.57 76,715.75
Fifth payable
Total 8,276,659.25 3.43 4,938,224.05
4) No other receivables involving government subsidies in the current period.
5) There are no other receivables derecognized due to the transfer of financial assets in the
current period.
6) No assets and liabilities formed by continued involvement due to the transfer of other
receivables in the current period.
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Bengang Steel Plates Co., Ltd. 2022 Semi-annual Report
5. Long-term equity investment
Ending balance Opening balance
Items Carrying Carrying
Impairment Book value Impairment Book value
amount amount
Subsidiaries 2,835,186,190.50 2,835,186,190.50 2,015,186,190.50 2,015,186,190.50
Total 2,835,186,190.50 2,835,186,190.50 2,015,186,190.50 2,015,186,190.50
Details of investment in subsidiaries
Ending
Impairmen
balance
Name of Ending t of
Opening balance Increase Decrease of
entity balance current
impairme
period
nt
Guangzhou
Bengang
170,000,000.0
Steel & Iron 30,000,000.00 200,000,000.00
0
Trading Co.,
Ltd.
Shanghai
Bengang
Metallurgy 170,000,000.0
30,000,000.00 200,000,000.00
Science and 0
Technology
Co., Ltd.
Bengang
Steel Plates
Liaoyang 529,899,801.38 529,899,801.38
Pellet Co.,
Ltd.
Dalian
Benruitong
Automobile
65,000,000.00 65,000,000.00
Material
Technology
Co., Ltd.
Bengang
POSCO
1,019,781,571.1 1,019,781,571.1
Cold-rolled
0 0
Sheet Co.,
Ltd.
Changchun
Bengang 28,144,875.36 28,144,875.36
Steel & Iron
128
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Report
Ending
Impairmen
balance
Name of Ending t of
Opening balance Increase Decrease of
entity balance current
impairme
period
nt
Sales Co.,
Ltd.
Harbin
Bengang
Economic 29,923,398.23 29,923,398.23
and Trading
Co., Ltd.
Nanjing
Bengang
Materials 2,081,400.65 2,081,400.65
Sales Co.,
Ltd.
Wuxi
Bengang
Steel & Iron 29,936,718.57 29,936,718.57
Sales Co.,
Ltd.
Yantai
Bengang
170,000,000.0
Steel & Iron 49,100,329.41 219,100,329.41
0
Sales Co.,
Ltd.
Tianjin
Bengang
170,000,000.0
Steel & Iron 60,318,095.80 230,318,095.80
0
Trading Co.,
Ltd.
Benxi
Bengang
30,000,000.00 30,000,000.00
Steel Sales
Co., Ltd
Shenyang
Bengang
Metallurgica
170,000,000.0
l Science 30,000,000.00 200,000,000.00
0
and
Technology
Co., Ltd.
129
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Report
Ending
Impairmen
balance
Name of Ending t of
Opening balance Increase Decrease of
entity balance current
impairme
period
nt
Chongqing
Liaoben
30,000,000.0
Steel & Iron 30,000,000.00 0.00
0
Trade Co.,
Ltd.
Bengang
Baojin
(Shenyang)
Automobile
51,000,000.00 51,000,000.00
New
Materials
Technology
Co., Ltd.
2,015,186,190.5 850,000,000.0 30,000,000.0 2,835,186,190.5
Total
0 0 0 0
6. Operating Income and Operating Cost
Current period Previous period
Items
Revenue Cost Revenue Cost
Principal
33,392,817,816.17 32,060,330,971.40 35,825,208,026.61 32,386,871,142.30
business
Other
2,381,220,254.26 2,344,381,961.67 3,255,993,831.68 2,898,719,746.40
business
Total 35,774,038,070.43 34,404,712,933.07 39,081,201,858.29 35,285,590,888.70
Details for operating income:
Items Principal Business Other Business
Classified by business area 33,392,817,816.17 2,381,220,254.26
Including：Domestic 29,324,558,197.44 2,381,220,254.26
Abroad 4,068,259,618.73
Classified by the time of commodity transfer 33,392,817,816.17 2,381,220,254.26
Including: recognize at a certain point in time 33,392,817,816.17 2,381,220,254.26
recognize over a certain period of time
Total 33,392,817,816.17 2,381,220,254.26
130
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Report
7. Income on investment
Items Current period Previous period
Income from disposal of long-term equity investment 6,059,547.35
Income on long-term equity investment accounted by
53,139,377.16
cost method
Short term Bank financial product income 1,553,175.04
Total 59,198,924.51 1,553,175.04
XV. Supplementary information
1. Details of non-recurring profit and loss
Items Amount Notes
Profit or loss from disposal of non-current assets 3,648,546.62
Government subsidy attributable to profit and loss of current period (except
such government subsidy closely related to the company's normal business
30,655,542.92
operation, meeting the regulation of national policy and enjoyed constantly
in certain quota or quantity according to a certain standard)
Other non-operating revenue and expenditure other than above items 19,806,941.56
Subtotal 54,111,031.1
Impact of income tax 13,527,757.78
Impact of minority interests 1,067,322.84
Total 39,515,950.48
2. Net asset yield and earnings per share
Weighted average net Earnings per share (Yuan)
Profit in the Reporting Period
assets yield (%) Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders 2.60 0.14 0.14
Net profit attributable to ordinary shareholders
2.42 0.13 0.13
after deducting non-recurring profit and loss
The above data are calculated by the following calculation formula：
(1) Weighted average return on net assets
Weighted average return on net assets=P0/（E0＋NP÷2＋Ei×Mi÷M0–Ej×Mj÷M0
±Ek×Mk÷M0）
Wherein: P0 is the net profit attributable to the common shareholders of the company ,or the net
profit attributable to the common shareholders of the company after deducting the non recurring
profit and loss; NP is the net profit attributable to ordinary shareholders of the company; E0 is
the opening net assets attributable to the ordinary shareholders of the company; EI is the net
assets of the company's common shareholders newly increased by issuing new shares or
Converting Debt into equity during the reporting period; EJ is the net assets attributable to the
131
Bengang Steel Plates Co., Ltd. 2022 Semi-annual Report
common shareholders of the company that are reduced by repurchase or cash dividends during
the reporting period; M0 is the number of months in the reporting period; Mi is the cumulative
number of months from the next month of new net assets to the end of the reporting period; MJ
is the cumulative number of months from the month following the reduction of net assets to the
end of the reporting period; EK is the increase or decrease in net assets attributable to the
common shareholders of the company due to other transactions or events; MK is the cumulative
number of months from the month following the increase or decrease of other net assets to the
end of the reporting period；
(2) Basic earning per share
Basic earning per share=P0÷S，S=S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0-Sk
Wherein: P0 is the net profit attributable to ordinary shareholders of the company or the net
profit attributable to ordinary shareholders after deducting non recurring profits and losses; S is
the weighted average number of ordinary shares issued; S0 is the total number of shares at the
beginning of the year; S1 is the number of shares increased due to the conversion of reserve
fund into share capital or the distribution of stock dividends during the reporting period; Si is
the number of shares increased due to the issuance of new shares or debt to equity conversion in
the reporting period; SJ is the number of shares reduced due to repurchase during the reporting
period; SK is the number of shares reduced in the reporting period; M0 number of months in
the reporting period; Mi is the cumulative number of months from the month following the
increase of shares to the end of the reporting period; MJ is the cumulative number of months
from the next month of share reduction to the end of the reporting period.
(3) Diluted earning per share
diluted earning per share=P1/（S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk + Weighted average number
of ordinary shares
increased by warrants,
share options, convertible
bonds, etc
Wherein:P1 is the net profit attributable to the ordinary shareholders of the company, or the net
profit attributable to the ordinary shareholders of the company after deducting the non recurring
profit and loss, and considering the impact of dilutive potential ordinary shares, it shall be
adjusted according to the accounting standards. When calculating diluted earnings per share, the
company shall consider the impact of all diluted potential ordinary shares on the net profit
attributable to ordinary shareholders of the company or the net profit attributable to ordinary
shareholders of the company after deducting the non recurring profit and loss and the weighted
average number of shares, and record the diluted earnings per share in the order of the dilution
degree from the largest to the smallest until the diluted earnings per share reaches the minimum
value.
132
