January 2023 – 30 June 2023
Contents | Page | ||
Consolidated statement of financial position and parent company’s statement of financial position | 1-4 | ||
5-6 | |||
Consolidated statement of cash flows and parent company’s statement of cash flows | 7-8 | ||
Consolidated statement of changes in equity and parent company’s statement of changes in equity | 9-12 | ||
Notes to the financial statements | 1-168 | ||
Bengang Steel Plates Co., Ltd.Consolidated Statement of Financial Position
30 June 2023(Expressed in RMB unless otherwise stated)
Assets | Note V | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
CURRENT ASSETS: | |||
Monetary funds | 1 | 3,656,559,532.07 | 1,461,145,641.87 |
Settlements provision | |||
Loans to banks and other financial institutions | |||
Financial assets held-for-trading | |||
Derivative financial assets | |||
Notes receivable | 2 | 87,391,995.82 | 429,707,174.70 |
Accounts receivable | 3 | 914,407,662.17 | 897,230,896.06 |
Accounts receivable financing | 4 | 953,938,535.80 | 137,591,996.02 |
Prepayments | 5 | 937,624,582.00 | 1,247,177,748.33 |
Premiums receivable | |||
Reinsurance accounts receivable | |||
Reinsurance contract reserves receivable | |||
Other receivables | 6 | 98,776,833.29 | 127,198,692.92 |
Financial assets purchased under resale agreements | |||
Inventories | 7 | 7,602,269,679.35 | 8,463,728,475.18 |
Contract assets | |||
Assets held for sale | |||
Non-current assets maturing within one year | |||
Other current assets | 8 | 39,068,241.10 | 395,441,136.26 |
TOTAL CURRENT ASSETS | 14,290,037,061.60 | 13,159,221,761.34 | |
NON-CURRENT ASSETS: | |||
Disbursement of advances and loans | |||
Debt investments | |||
Other debt investments | |||
Long-term receivables | |||
Long-term equity investments | 9 | 47,556,655.02 | 51,030,777.18 |
Other equity instrument investments | 10 | 1,020,418,482.31 | 1,020,418,482.31 |
Other non-current financial assets | |||
Investment properties | |||
Fixed assets | 11 | 24,254,961,069.74 | 24,836,556,422.90 |
Construction in progress | 12 | 4,151,149,369.23 | 3,158,195,899.65 |
Productive biological assets | |||
Oil and natural gas assets | |||
Right-of-use assets | 13 | 1,349,803,446.63 | 1,379,990,713.89 |
Intangible assets | 14 | 259,745,931.54 | 262,784,937.41 |
Development costs | |||
Goodwill | |||
Long-term deferred expenses | |||
Deferred tax assets | 15 | 148,010,869.57 | 136,387,885.28 |
Other non-current assets | 16 | 349,815,196.20 | 110,065,560.68 |
TOTAL NON-CURRENT ASSETS | 31,581,461,020.24 | 30,955,430,679.30 | |
TOTAL ASSETS | 45,871,498,081.84 | 44,114,652,440.64 |
The following notes are as part of the financial statements.Legal representative: Chief financial officer: Chief accountant:
Bengang Steel Plates Co., Ltd.Consolidated Statement of Financial Position(Continued)
30 June 2023(Expressed in RMB unless otherwise stated)
Liabilities and Equity | Note V | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
CURRENT LIABILITIES: | |||
Short-term borrowings | 17 | 300,020,000.00 | 49,200,000.00 |
Borrowings from central bank | |||
Loans from banks and other financial institutions | |||
Financial liabilities held-for-trading | |||
Derivative financial liabilities | |||
Notes payable | 18 | 7,719,942,239.59 | 4,389,336,619.36 |
Accounts payable | 19 | 4,092,895,525.39 | 3,696,420,463.85 |
Advances from customers | |||
Contract liabilities | 20 | 3,733,739,770.22 | 3,794,115,592.29 |
Financial assets sold under repurchase agreements | |||
Deposits and balances from customers and banks | |||
Customer securities brokerage deposits | |||
Customer securities underwriting deposits | |||
Employee benefits payable | 21 | 12,952,463.97 | 10,046,363.27 |
Taxes and surcharges payable | 22 | 106,443,329.12 | 44,392,920.78 |
Other payables | 23 | 1,639,486,201.24 | 1,247,722,165.47 |
Fees and commissions payable | |||
Reinsurance payables | |||
Liabilities held for sale | |||
Non-current liabilities maturing within one year | 24 | 1,613,201,458.81 | 2,586,250,886.43 |
Other current liabilities | 25 | 485,575,516.40 | 493,235,027.03 |
TOTAL CURRENT LIABILITIES | 19,704,256,504.74 | 16,310,720,038.48 | |
NON-CURRENT LIABILITIES: | |||
Insurance contract reserve | |||
Long-term borrowings | 26 | 959,713,911.60 | 1,726,938,302.30 |
Bonds payable | 27 | 5,382,304,119.20 | 5,276,502,232.78 |
Including: Preferred stock | |||
Perpetual bonds | |||
Lease liabilities | 28 | 1,364,333,523.13 | 1,384,348,462.18 |
Long-term payables | |||
Long-term employee benefits payable | |||
Provision | |||
Deferred income | 29 | 41,387,816.78 | 42,377,015.51 |
Deferred tax liabilities | 27,309.01 | 27,309.01 | |
Other non-current liabilities | |||
TOTAL NON-CURRENT LIABILITIES | 7,747,766,679.72 | 8,430,193,321.78 | |
TOTAL LIABILITIES | 27,452,023,184.46 | 24,740,913,360.26 | |
OWNERS' EQUITY: | |||
Share capital | 30 | 4,108,214,747.00 | 4,108,212,217.00 |
Other equity instruments | 31 | 947,861,798.36 | 947,863,834.02 |
Including: Preferred stocks | |||
Perpetual bonds | |||
Capital reserves | 32 | 13,272,212,557.25 | 13,272,205,160.21 |
Less: treasury stock | |||
Other comprehensive income | 33 | -15,904,760.02 | -15,904,760.02 |
Special reserves | 34 | 29,010,352.89 | 2,217,913.77 |
Surplus reserves | 35 | 1,195,116,522.37 | 1,195,116,522.37 |
General risk reserves | |||
Undistributed profits | 36 | -1,725,505,294.41 | -720,559,670.73 |
Total equity attributable to the owners of the parent company | 17,811,005,923.44 | 18,789,151,216.62 | |
Non-controlling interests | 608,468,973.94 | 584,587,863.76 | |
TOTAL OWNERS' EQUITY | 18,419,474,897.38 | 19,373,739,080.38 | |
TOTAL LIABILITIES AND OWNERS' EQUITY | 45,871,498,081.84 | 44,114,652,440.64 |
The following notes are as part of the financial statements.Legal representative: Chief financial officer: Chief accountant:
Bengang Steel Plates Co., Ltd.Parent Company's Statement of Financial Position
30 June 2023(Expressed in RMB unless otherwise stated)
Assets | Note XIV | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
CURRENT ASSETS: | |||
Monetary funds | 2,494,741,609.19 | 585,125,555.12 | |
Financial assets held-for-trading | |||
Derivative financial assets | |||
Notes receivable | 1 | 877,829,539.94 | 669,193,401.02 |
Accounts receivable | 2 | 693,637,618.60 | 931,035,796.58 |
Accounts receivable financing | 3 | 827,579,316.11 | 127,468,835.80 |
Prepayments | 922,061,764.36 | 1,247,084,271.88 | |
Other receivables | 4 | 166,743,093.49 | 150,724,545.56 |
Inventories | 6,714,763,093.25 | 6,988,993,205.61 | |
Contract assets | |||
Assets held for sale | |||
Non-current assets maturing within one year | |||
Other current assets | 848,555.43 | 310,293,996.25 | |
TOTAL CURRENT ASSETS | 12,698,204,590.37 | 11,009,919,607.82 | |
NON-CURRENT ASSETS: | |||
Debt investments | |||
Other debt investments | |||
Long-term receivables | |||
Long-term equity investments | 5 | 2,269,838,245.27 | 2,270,277,904.85 |
Other equity instrument investment | 1,020,418,482.31 | 1,020,418,482.31 | |
Other non-current financial assets | |||
Investment properties | |||
Fixed assets | 23,245,968,241.40 | 23,777,736,434.39 | |
Construction in progress | 4,120,300,973.77 | 3,127,247,793.98 | |
Productive biological assets | |||
Oil and natural gas assets | |||
Right-of-use assets | 1,349,803,446.63 | 1,379,990,713.89 | |
Intangible assets | 172,578,872.34 | 174,295,096.19 | |
Development costs | |||
Goodwill | |||
Long-term deferred expenses | |||
Deferred tax assets | 145,264,403.37 | 115,126,210.76 | |
Other non-current assets | 349,815,196.20 | 110,065,560.68 | |
TOTAL NON-CURRENT ASSETS | 32,673,987,861.29 | 31,975,158,197.05 | |
TOTAL ASSETS | 45,372,192,451.66 | 42,985,077,804.87 |
The following notes are as part of the financial statements.Legal representative: Chief financial officer: Chief accountant:
Bengang Steel Plates Co., Ltd.Parent company’s Statement of Financial Position(Continued)
30 June 2023(Expressed in RMB unless otherwise stated)
Liabilities and Equity | Note | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
CURRENT LIABILITIES: | |||
Short-term borrowings | 300,020,000.00 | 49,200,000.00 | |
Financial liabilities held-for-trading | |||
Derivative financial liabilities | |||
Notes payable | 7,715,109,085.39 | 3,982,738,952.59 | |
Accounts payable | 4,236,729,868.04 | 3,821,848,200.25 | |
Advances from customers | |||
Contract liabilities | 4,845,887,001.18 | 4,805,281,178.80 | |
Employee benefits payable | 12,147,392.67 | 9,901,551.31 | |
Taxes and surcharges payable | 80,296,377.93 | 22,518,649.65 | |
Other payables | 1,481,659,234.98 | 861,392,691.88 | |
Liabilities held for sale | |||
Non-current liabilities maturing within one year | 1,613,201,458.81 | 2,586,250,886.43 | |
Other current liabilities | 629,965,310.15 | 624,686,553.24 | |
TOTAL CURRENT LIABILITIES | 20,915,015,729.15 | 16,763,818,664.15 | |
NON-CURRENT LIABILITIES: | |||
Long-term borrowings | 959,713,911.60 | 1,726,938,302.30 | |
Bonds payable | 5,382,304,119.20 | 5,276,502,232.78 | |
Including: Preferred stock | |||
Perpetual bonds | |||
Lease liabilities | 1,364,333,523.13 | 1,384,348,462.18 | |
Long-term payables | |||
Long-term employee benefits payable | |||
Provision | |||
Deferred income | 41,387,816.78 | 42,377,015.51 | |
Deferred tax liabilities | 27,309.01 | 27,309.01 | |
Other non-current liabilities | |||
TOTAL NON-CURRENT LIABILITIES | 7,747,766,679.72 | 8,430,193,321.78 | |
TOTAL LIABILITIES | 28,662,782,408.87 | 25,194,011,985.93 | |
OWNERS' EQUITY: | |||
Share capital | 4,108,214,747.00 | 4,108,212,217.00 | |
Other equity instrument | 947,861,798.36 | 947,863,834.02 | |
Including: Preferred stocks | |||
Perpetual bonds | |||
Capital reserves | 12,852,060,875.13 | 12,852,053,478.09 | |
Less: treasury stock | |||
Other comprehensive income | -15,904,760.02 | -15,904,760.02 | |
Special reserves | 19,831,812.69 | 58,212.15 | |
Surplus reserves | 1,195,116,522.37 | 1,195,116,522.37 | |
Undistributed profits | -2,397,770,952.74 | -1,296,333,684.67 | |
TOTAL OWNERS' EQUITY | 16,709,410,042.79 | 17,791,065,818.94 | |
TOTAL LIABILITIES AND OWNERS' EQUITY | 45,372,192,451.66 | 42,985,077,804.87 |
The following notes are as part of the financial statements.Legal representative: Chief financial officer: Chief accountant:
Bengang Steel Plates Co., Ltd.Consolidated Statement of Profit or Loss and Other Comprehensive Income
January to June 2023(Expressed in RMB unless otherwise stated)
Items | Note V | Current period | Previous period |
I. REVENUE | 30,567,409,205.03 | 35,015,177,304.98 | |
Including: Operating income | 37 | 30,567,409,205.03 | 35,015,177,304.98 |
Interests income | |||
Earned premiums | |||
Income from handling charges and commissions | |||
II. COST OF SALES | 31,417,700,991.35 | 34,212,560,449.82 | |
Including: Operating costs | 37 | 30,714,640,963.91 | 33,377,477,540.63 |
Interest expenses | |||
Handling charges and commissions expenses | |||
Surrender value | |||
Net amount of insurance claims | |||
Net provision of insurance contract reserve | |||
Policy dividend payment | |||
Reinsurance expense | |||
Taxes and surcharges | 38 | 99,040,677.75 | 99,885,445.23 |
Selling expenses | 39 | 69,901,883.24 | 67,430,875.17 |
Administrative expenses | 40 | 339,569,021.49 | 352,304,684.10 |
Research and development expenses | 41 | 32,990,679.09 | 22,368,496.87 |
Finance costs | 42 | 161,557,765.87 | 293,093,407.82 |
Including: Interest expenses | 234,419,462.35 | 342,674,208.42 | |
Interest income | 27,351,519.21 | 61,019,147.27 | |
Add: Other income | 43 | 3,518,092.14 | 30,655,542.92 |
Investment income ("-" for losses) | 44 | -2,541,506.30 | 115,842.84 |
Including: Income from investment in associates and joint ventures | -439,659.58 | 85,455.22 | |
Gains /(losses) from derecognition of financial assets measured at amortised cost | |||
Foreign exchange gains ("-" for losses) | |||
Income /(losses) from net exposure hedging | |||
Gains from changes in fair value ("-" for losses) | |||
Credit impairment losses ("-" for losses) | 45 | -17,450,773.47 | -793,906.73 |
Asset impairment losses ("-" for losses) | 46 | -84,458,260.66 | -72,880,991.53 |
Gains on disposal of assets ("-" for losses) | 47 | 3,648,546.62 | |
III. PROFIT FROM OPERATIONS ("-" For Losses) | -951,224,234.61 | 763,361,889.28 | |
Add: Non-operating income | 48 | 51,584,548.03 | 30,572,281.35 |
Less: Non-operating expenses | 49 | 50,585,327.13 | 10,765,339.79 |
IV. PROFIT BEFORE TAX ("-" For Total Losses) | -950,225,013.71 | 783,168,830.84 | |
Less: Income tax expenses | 50 | 33,191,710.84 | 203,204,954.60 |
V. NET PROFIT ("-" For Net Loss) | -983,416,724.55 | 579,963,876.24 | |
I. Classified by going concern: | |||
Net profit from the continuing operations("-" for net loss) | -983,416,724.55 | 579,963,876.24 | |
Net profit from the discontinued operations("-" for net loss) | |||
II. Classified by ownership: | |||
Net profit attributable to the owners of the parent company("-" for net loss) | -1,004,945,623.68 | 561,735,377.41 | |
Non-controlling interests("-" for net loss) | 21,528,899.13 | 18,228,498.83 | |
VI. NET AMOUNT OF OTHER COMPREHENSIVE INCOME AFTER TAX | |||
Net amount of other comprehensive income attributable to owners of the parent company, net of tax | |||
(i) Other comprehensive incomes that cannot be reclassified into profit or loss | |||
1. Changes arising from recalculating defined benefit plans | |||
2. Other comprehensive incomes that cannot be reclassified into profit or loss under equity accounting method | |||
3. Changes in fair value of other equity instrument investment | |||
4. Changes in fair value of the company’s own credit risks | |||
(ii) Other comprehensive incomes that will be reclassified into profit or loss | |||
1. Other comprehensive incomes that will be reclassified into profit or loss under equity accounting method | |||
2. Changes in fair value of other debt instrument investment | |||
3. Other comprehensive income arising from the reclassification of financial assets | |||
4. Provision for credit impairment in other debt investments | |||
5. Cash flow hedge reserve | |||
6. Foreign currency translation differences in financial statements | |||
7. Others | |||
Net amount of other comprehensive income attributable to minority shareholders, net of tax | |||
VII. TOTAL COMPREHENSIVE INCOME | -983,416,724.55 | 579,963,876.24 | |
Total comprehensive income attributable to owners of the parent company | -1,004,945,623.68 | 561,735,377.41 | |
Total comprehensive income attributable to minority shareholders | 21,528,899.13 | 18,228,498.83 | |
VIII. EARNINGS PER SHARE: | |||
1. Basic earnings per share (yuan/share) | -0.2446 | 0.14 | |
2. Diluted earnings per share (yuan/share) | -0.1558 | 0.14 |
The following notes are as part of the financial statements.Legal representative: Chief financial officer: Chief accountant:
Bengang Steel Plates Co., Ltd.Parent Company's Statement of Profit or Loss and Other Comprehensive Income
January to June 2023(Expressed in RMB unless otherwise stated)
Items | Note XIV | Current period | Previous period |
I. REVENUE | 6 | 30,351,590,885.27 | 35,774,038,070.43 |
Less: Operating costs | 6 | 30,725,796,931.13 | 34,404,712,933.07 |
Taxes and surcharges | 70,444,069.04 | 74,061,344.22 | |
Selling expenses | 72,626,552.38 | 58,854,346.91 | |
Administrative expenses | 320,165,443.13 | 323,747,875.71 | |
Research and development expenses | 32,990,679.09 | 22,368,496.87 | |
Finance costs | 168,567,801.72 | 290,720,557.98 | |
Including: Interest expenses | 233,021,988.80 | 327,728,944.07 | |
Interest income | 18,139,148.26 | 48,263,709.87 | |
Add: Other income | 2,943,726.56 | 30,272,965.00 | |
Investment income ("-" for losses) | 7 | -2,247,043.73 | 59,198,924.51 |
Including: Income from investment in associates and joint ventures | -439,659.58 | ||
Gains from derecognition of financial assets measured at amortized cost | |||
Income from net exposure hedging ("-" for losses) | |||
Gains from changes in fair value ("-" for losses) | |||
Credit impairment losses ("-" for losses) | -11,635,010.35 | -1,392,974.69 | |
Asset impairment losses ("-" for losses) | -84,458,260.66 | -72,880,991.53 | |
Gains on disposal of assets ("-" for losses) | 3,669,258.68 | ||
II. PROFIT FROM OPERATIONS ("-" For Losses) | -1,134,397,179.40 | 618,439,697.64 | |
Add: Non-operating income | 51,556,172.07 | 24,296,108.68 | |
Less: Non-operating expenses | 50,585,327.13 | 10,736,478.75 | |
III. PROFIT BEFORE TAX ("-" For Total Losses) | -1,133,426,334.46 | 631,999,327.57 | |
Less: Income tax expenses | -31,989,066.39 | 150,685,673.12 | |
IV. NET PROFIT ("-" For Net Loss) | -1,101,437,268.07 | 481,313,654.45 | |
1. Net profit/(loss) from continuing operation | -1,101,437,268.07 | 481,313,654.45 | |
2. Net profit/(loss) from discontinued operation | |||
V. NET AMOUNT OF OTHER COMPREHENSIVE INCOME AFTER TAX | |||
(i) Other comprehensive incomes that cannot be reclassified into profit or loss | |||
1. Changes arising from recalculating defined benefit plans | |||
2. Other comprehensive incomes that cannot be reclassified into profit or loss under equity accounting method | |||
3. Changes in fair value of other equity instrument investment | |||
4. Changes in fair value of the company’s own credit risks | |||
(ii) Other comprehensive incomes that will be reclassified into profit or loss | |||
1. Other comprehensive incomes that will be reclassified into profit or loss under equity accounting method | |||
2. Changes in fair value of other debt instrument investment | |||
3. Other comprehensive income arising from the reclassification of financial assets | |||
4. Provision for credit impairment in other debt investments | |||
5. Cash flow hedge reserve | |||
6. Foreign currency translation differences in financial statements | |||
7. Others | |||
VI. TOTAL COMPREHENSIVE INCOME | -1,101,437,268.07 | 481,313,654.45 | |
VII. EARNINGS PER SHARE: | |||
1. Basic earnings per share (yuan/share) | |||
2. Diluted earnings per share (yuan/share) |
The following notes are as part of the financial statements.Legal representative: Chief financial officer: Chief accountant:
Bengang Steel Plates Co., Ltd.Consolidated Statement of Cash Flows
January to June 2023(Expressed in RMB unless otherwise stated)
Items | Note | Current period | Previous period |
I. CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Cash received from sale of goods and rendering of services | 28,113,350,099.51 | 30,399,917,736.81 | |
Net increase in deposits from customers and other banks | |||
Net increase in borrowings from central bank | |||
Net increase in loans from other financial institutions | |||
Cash received from receiving insurance premium of original insurance contracts | |||
Net cash received from reinsurance business | |||
Net increase in deposits and investments from policyholders | |||
Cash received from interest, handling charges and commissions | |||
Net increase in loans from banks and other financial institutions | |||
Net increase in repurchase business funds | |||
Net cash received from securities trading brokerage business | |||
Cash received from tax refund | 152,957,619.94 | 411,362,662.88 | |
Cash received from other operating activities | 66,147,192.05 | 168,719,124.22 | |
SUB-TOTAL OF CASH INFLOWS FROM OPERATING ACTIVITIES | 28,332,454,911.50 | 30,979,999,523.91 | |
Cash paid for goods purchased and services received | 22,042,504,737.63 | 28,939,015,822.97 | |
Net increase in loans and advances to customers | |||
Net increase in deposits in central bank and other banks | |||
Cash paid for original insurance contract claims | |||
Net increase in loans to banks and other financial institutions | |||
Cash paid for interest, handling charges and commissions | |||
Cash paid for policy dividends | |||
Cash paid to and on behalf of employees | 1,233,151,555.08 | 1,281,589,573.82 | |
Cash paid for taxes and surcharges | 216,708,235.51 | 282,883,307.60 | |
Cash paid for other operating activities | 177,453,101.47 | 249,058,977.31 | |
SUB-TOTAL OF CASH OUTFLOWS FROM OPERATING ACTIVITIES | 23,669,817,629.69 | 30,752,547,681.70 | |
NET CASH FLOWS FROM OPERATING ACTIVITIES | 4,662,637,281.81 | 227,451,842.21 | |
II. CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Cash received from disposal of investments | 1,843,800.00 | ||
Cash received from returns on investments | 896,200.00 | ||
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 31,053,599.66 | 60,800.00 | |
Net cash received from disposal of subsidiaries and other business units | |||
Cash received from other investing activities | |||
SUB-TOTAL OF CASH INFLOWS FROM INVESTING ACTIVITIES | 33,793,599.66 | 60,800.00 | |
Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 926,848,281.71 | 755,407,575.62 | |
Cash paid for investments | |||
Net increase in pledge loans | |||
Net cash paid to acquire subsidiaries and other business units | |||
Cash paid for other investing activities | |||
SUB-TOTAL OF CASH OUTFLOWS FROM INVESTING ACTIVITIES | 926,848,281.71 | 755,407,575.62 | |
NET CASH FLOWS FROM INVESTING ACTIVITIES | -893,054,682.05 | -755,346,775.62 | |
III. CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Cash from absorption of investments | |||
Including: Cash received by subsidiaries from investments by minority shareholders | |||
Cash received from borrowings | 300,000,000.00 | 602,067,123.44 | |
Cash received from other financing activities | 299,914,718.38 | 2,548,792,921.60 | |
SUB-TOTAL OF CASH INFLOWS FROM FINANCING ACTIVITIES | 599,914,718.38 | 3,150,860,045.04 | |
Cash paid for debt repayments | 1,691,272,090.32 | 1,393,191,834.05 | |
Cash paid for distribution of dividends and profits or payment of interest | 174,775,117.17 | 2,708,922,405.78 | |
Including: Dividends and profits paid to minority shareholders by subsidiaries | |||
Cash paid for other financing activities | 695,121,631.51 | 71,693,646.43 | |
SUB-TOTAL OF CASH OUTFLOWS FROM FINANCING ACTIVITIES | 2,561,168,839.00 | 4,173,807,886.26 | |
NET CASH FLOWS FROM FINANCING ACTIVITIES | -1,961,254,120.62 | -1,022,947,841.22 | |
IV. EFFECT OF FLUCTUATION IN EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | 30,544,772.80 | 2,217,009.66 | |
V. NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,838,873,251.94 | -1,548,625,764.97 | |
Add: Balance of cash and cash equivalents at the beginning of the period | 1,296,662,683.20 | 6,299,099,063.48 | |
VI. BALANCE OF CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 3,135,535,935.14 | 4,750,473,298.51 |
The following notes are as part of the financial statements.Legal representative: Chief financial officer: Chief accountant:
Bengang Steel Plates Co., Ltd.Parent Company's Statement of Cash Flows
January to June 2023(Expressed in RMB unless otherwise stated)
Items | Note | Current period | Previous period |
I. CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Cash received from sale of goods and rendering of services | 27,625,067,518.78 | 30,919,471,674.38 | |
Cash received from tax refund | 144,310,086.64 | 406,487,928.59 | |
Cash received from other operating activities | 55,780,538.64 | 155,803,337.55 | |
SUB-TOTAL OF CASH INFLOWS FROM OPERATING ACTIVITIES | 27,825,158,144.06 | 31,481,762,940.52 | |
Cash paid for goods purchased and services received | 22,087,125,206.72 | 29,479,472,246.34 | |
Cash paid to and on behalf of employees | 1,169,170,038.27 | 1,197,357,426.66 | |
Cash paid for taxes and surcharges | 64,558,833.83 | 102,560,662.62 | |
Cash paid for other operating activities | 159,109,487.43 | 138,755,917.63 | |
SUB-TOTAL OF CASH OUTFLOWS FROM OPERATING ACTIVITIES | 23,479,963,566.25 | 30,918,146,253.25 | |
NET CASH FLOWS FROM OPERATING ACTIVITIES | 4,345,194,577.81 | 563,616,687.27 | |
II. CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Cash received from returns on investments | |||
Cash received from returns on investments | 53,139,377.16 | ||
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 31,053,599.66 | 60,800.00 | |
Net cash received from disposal of subsidiaries and other business units | 33,061,417.35 | ||
Cash received from other investing activities | 17,624,754.20 | ||
SUB-TOTAL OF CASH INFLOWS FROM INVESTING ACTIVITIES | 48,678,353.86 | 86,261,594.51 | |
Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 925,373,942.02 | 749,875,275.53 | |
Cash paid for investments | 850,000,000.00 | ||
Net cash paid to acquire subsidiaries and other business units | |||
Cash paid for other investing activities | |||
SUB-TOTAL OF CASH OUTFLOWS FROM INVESTING ACTIVITIES | 925,373,942.02 | 1,599,875,275.53 | |
NET CASH FLOWS FROM INVESTING ACTIVITIES | -876,695,588.16 | -1,513,613,681.02 | |
III. CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Cash from absorption of investments | |||
Cash received from borrowings | 300,000,000.00 | 602,067,123.44 | |
Cash received from other financing activities | 299,914,718.38 | 2,548,792,921.60 | |
SUB-TOTAL OF CASH INFLOWS FROM FINANCING ACTIVITIES | 599,914,718.38 | 3,150,860,045.04 | |
Cash paid for debt repayments | 1,691,272,090.32 | 1,293,191,834.05 | |
Cash paid for distribution of dividends and profits or payment of interest | 174,775,117.17 | 2,695,763,155.78 | |
Cash paid for other financing activities | 678,225,192.33 | 71,693,646.43 | |
SUB-TOTAL OF CASH OUTFLOWS FROM FINANCING ACTIVITIES | 2,544,272,399.82 | 4,060,648,636.26 | |
NET CASH FLOWS FROM FINANCING ACTIVITIES | -1,944,357,681.44 | -909,788,591.22 | |
IV. EFFECT OF FLUCTUATION IN EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | 28,934,107.60 | 1,506,171.92 | |
V. NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,553,075,415.81 | -1,858,279,413.05 | |
Add: Balance of cash and cash equivalents at the beginning of the period | 420,642,596.45 | 5,048,875,333.01 | |
VI. BALANCE OF CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 1,973,718,012.26 | 3,190,595,919.96 |
The following notes are as part of the financial statements.Legal representative: Chief financial officer: Chief accountant:
Bengang Steel Plates Co., Ltd.Consolidated Statement of Changes in Equity
January to June 2023(Expressed in RMB unless otherwise stated)
Items | Current period | |||||||||||||
Owner's equity attributable to parent company | Non-controlling interest | Total of shareholders’ equity | ||||||||||||
Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus reserves | General risk reserves | Undistributed profits | Subtotal | |||||
Preference shares | Perpetual bond | Others | ||||||||||||
I. Ending balance of last year | 4,108,212,217.00 | 947,863,834.02 | 13,272,205,160.21 | -15,904,760.02 | 2,217,913.77 | 1,195,116,522.37 | -720,559,670.73 | 18,789,151,216.62 | 584,587,863.76 | 19,373,739,080.38 | ||||
Add: Change of accounting policies | ||||||||||||||
Correction of errors for last period | ||||||||||||||
Business consolidation under common control | ||||||||||||||
Others | ||||||||||||||
II. Opening balance of current year | 4,108,212,217.00 | 947,863,834.02 | 13,272,205,160.21 | -15,904,760.02 | 2,217,913.77 | 1,195,116,522.37 | -720,559,670.73 | 18,789,151,216.62 | 584,587,863.76 | 19,373,739,080.38 | ||||
III. Changes in current year (“-” for decreases) | 2,530.00 | -2,035.66 | 7,397.04 | 26,792,439.12 | -1,004,945,623.68 | -978,145,293.18 | 23,881,110.18 | -954,264,183.00 | ||||||
1. Total comprehensive income | -1,004,945,623.68 | -1,004,945,623.68 | 21,528,899.13 | -983,416,724.55 | ||||||||||
2. Capital increases and decreases by shareholders | 2,530.00 | -2,035.66 | 7,397.04 | 7,891.38 | 7,891.38 | |||||||||
(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 | 2,530.00 | -2,035.66 | 7,397.04 | 7,891.38 | 7,891.38 | |||||||||
3. Profit distribution | ||||||||||||||
(1) Appropriation to surplus reserves | ||||||||||||||
(2) Appropriation to general risk reserves | ||||||||||||||
(3) Profit distribution to shareholders | ||||||||||||||
(4) Others | ||||||||||||||
4. Transfers within shareholders’ equity | ||||||||||||||
(1) Capital reserves transferred into paid-in capital (or share capital) | ||||||||||||||
(2) Surplus reserves transferred into paid-in capital (or share capital) | ||||||||||||||
(3) Surplus reserves to recover losses | ||||||||||||||
(4) Net changes of defined contribution plans transferred into retained earnings | ||||||||||||||
(5) Other comprehensive income transferred into retained earnings |
Items | Current period | |||||||||||||
Owner's equity attributable to parent company | Non-controlling interest | Total of shareholders’ equity | ||||||||||||
Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus reserves | General risk reserves | Undistributed profits | Subtotal | |||||
Preference shares | Perpetual bond | Others | ||||||||||||
(6) Others | ||||||||||||||
5. Special reserves | 26,792,439.12 | 26,792,439.12 | 2,352,211.05 | 29,144,650.17 | ||||||||||
(1) Provision of special reserves | 34,099,757.81 | 34,099,757.81 | 2,472,551.75 | 36,572,309.56 | ||||||||||
(2) Use of special reserves | 7,307,318.69 | 7,307,318.69 | 120,340.70 | 7,427,659.39 | ||||||||||
6. Others | ||||||||||||||
IV. Ending balance of current year | 4,108,214,747.00 | 947,861,798.36 | 13,272,212,557.25 | -15,904,760.02 | 29,010,352.89 | 1,195,116,522.37 | -1,725,505,294.41 | 17,811,005,923.44 | 608,468,973.94 | 18,419,474,897.38 |
The following notes are as part of the financial statements.Legal representative: Chief financial officer: Chief accountant:
Bengang Steel Plates Co., Ltd.Consolidated Statement of Changes in Equity(Continued)
January to June 2023(Expressed in RMB unless otherwise stated)
Items | Previous period | |||||||||||||
Owner's equity attributable to parent company | Non-controlling interest | Total of shareholders’ equity | ||||||||||||
Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus reserves | General risk reserves | Undistributed profits | Subtotal | |||||
Preference shares | Perpetual bond | Others | ||||||||||||
I. 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 | ||||||||||||||
II. 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 | |||||
III. Changes in current year (“-” for decreases) | 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 | ||||||
1. Total comprehensive income | 561,735,377.41 | 561,735,377.41 | 18,228,498.83 | 579,963,876.24 | ||||||||||
2. Capital increases and decreases by shareholders | 17,727.00 | -16,325.76 | 61,887.86 | 63,289.10 | 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 owners’ equity | ||||||||||||||
(4) Others | 17,727.00 | -16,325.76 | 61,887.86 | 63,289.10 | 63,289.10 | |||||||||
3. Profit 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 reserves | ||||||||||||||
(3) Profit 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 share capital) | ||||||||||||||
(2) Surplus reserves transferred into paid-in capital (or share capital) | ||||||||||||||
(3) Surplus reserves to recover losses | ||||||||||||||
(4) Net changes of defined contribution plans transferred into retained earnings | ||||||||||||||
(5) Other comprehensive income transferred into retained earnings |
Items | Previous period | |||||||||||||
Owner's equity attributable to parent company | Non-controlling interest | Total of shareholders’ equity | ||||||||||||
Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus reserves | General risk reserves | Undistributed profits | Subtotal | |||||
Preference shares | Perpetual bond | Others | ||||||||||||
(6) Others | ||||||||||||||
5. Special reserves | 31,151,584.66 | 31,151,584.66 | 2,486,434.26 | 33,638,018.92 | ||||||||||
(1) Provision 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 | ||||||||||||||
IV. 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 following notes are as part of the financial statements.Legal representative: Chief financial officer: Chief accountant:
Bengang Steel Plates Co., Ltd.Parent Company's Statement of Changes in Equity
January to June 2023(Expressed in RMB unless otherwise stated)
Items | Current period | ||||||||||
Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profits | Total of shareholders’ equity | |||
Preference shares | Perpetual bond | Others | |||||||||
I. Ending balance of last year | 4,108,212,217.00 | 947,863,834.02 | 12,852,053,478.09 | -15,904,760.02 | 58,212.15 | 1,195,116,522.37 | -1,296,333,684.67 | 17,791,065,818.94 | |||
Add: Change of accounting policies | |||||||||||
Correction of errors for last period | |||||||||||
Others | |||||||||||
II. Opening balance of current year | 4,108,212,217.00 | 947,863,834.02 | 12,852,053,478.09 | -15,904,760.02 | 58,212.15 | 1,195,116,522.37 | -1,296,333,684.67 | 17,791,065,818.94 | |||
III. Changes in current year (“-” for decreases) | 2,530.00 | -2,035.66 | 7,397.04 | 19,773,600.54 | -1,101,437,268.07 | -1,081,655,776.15 | |||||
1. Total comprehensive income | -1,101,437,268.07 | -1,101,437,268.07 | |||||||||
2. Capital increases and decreases by shareholders | 2,530.00 | -2,035.66 | 7,397.04 | 7,891.38 | |||||||
(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 | 2,530.00 | -2,035.66 | 7,397.04 | 7,891.38 | |||||||
3. Profit distribution | |||||||||||
(1) Appropriation to surplus reserves | |||||||||||
(2) Appropriation to general risk reserves | |||||||||||
(3) Profit distribution to shareholders | |||||||||||
5. Transfers within shareholders’ equity | |||||||||||
(1) Capital reserves transferred into paid-in capital (or share capital) | |||||||||||
(2) Surplus reserves transferred into paid-in capital (or share capital) | |||||||||||
(3) Surplus reserves to recover losses | |||||||||||
(4) Net changes of defined contribution plans transferred into retained earnings | |||||||||||
(5) Other comprehensive income transferred into retained earnings | |||||||||||
(6) Others | |||||||||||
5. Special reserves | 19,773,600.54 | 19,773,600.54 | |||||||||
(1) Provision of special reserves | 26,797,787.85 | 26,797,787.85 |
Items | Current period | ||||||||||
Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profits | Total of shareholders’ equity | |||
Preference shares | Perpetual bond | Others | |||||||||
(2) Use of special reserves | 7,024,187.31 | 7,024,187.31 | |||||||||
6. Others | |||||||||||
IV. Ending balance of current year | 4,108,214,747.00 | 947,861,798.36 | 12,852,060,875.13 | -15,904,760.02 | 19,831,812.69 | 1,195,116,522.37 | -2,397,770,952.74 | 16,709,410,042.79 |
The following notes are as part of the financial statements.Legal representative: Chief financial officer: Chief accountant:
Bengang Steel Plates Co., Ltd.Parent Company’s Statement of Changes in Equity(Continued)
January to June 2023(Expressed in RMB unless otherwise stated)
Items | Current period | ||||||||||
Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profits | Total of shareholders’ equity | |||
Preference shares | Perpetual bond | Others | |||||||||
I. 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 | |||||||||||
II. 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 | ||||
III. Changes in current year (“-” for decreases) | 17,727.00 | -16,325.76 | 61,887.86 | 22,374,153.44 | -1,983,601,172.95 | -1,961,163,730.41 | |||||
1. Total comprehensive income | 481,313,654.45 | 481,313,654.45 | |||||||||
2. Capital increases and decreases 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 owners’ equity | |||||||||||
(4) Others | 17,727.00 | -16,325.76 | 61,887.86 | 63,289.10 | |||||||
3. Profit distribution | -2,464,914,827.40 | -2,464,914,827.40 | |||||||||
(1) Appropriation to surplus reserves | |||||||||||
(2) Appropriation to general risk reserves | -2,464,914,827.40 | -2,464,914,827.40 | |||||||||
(3) Profit distribution to shareholders | |||||||||||
5. Transfers within shareholders’ equity | |||||||||||
(1) Capital reserves transferred into paid-in capital (or share capital) | |||||||||||
(2) Surplus reserves transferred into paid-in capital (or share capital) | |||||||||||
(3) Surplus reserves to recover losses | |||||||||||
(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 |
Items | Current period | ||||||||||
Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profits | Total of shareholders’ equity | |||
Preference shares | Perpetual bond | Others | |||||||||
(2) Use of special reserves | 7,678,532.32 | 7,678,532.32 | |||||||||
6. Others | |||||||||||
IV. 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 following notes are as part of the financial statements.Legal representative: Chief financial officer: Chief accountant:
Bengang Steel Plates Co., Ltd.Notes to 2023 Semi-Annual Financial Report(All amounts expressed in RMB unless otherwise stated)
I. Company's Basic Information
1. Company Profile
Bengang Steel Plates Co., Ltd. (hereinafter referred to as “Bengang Steel Plates” or“Company” or “the Company”) was approved by the People's Government of LiaoningProvince on March 27, 1997 in “Liao Zheng [1997] No. 57”. Benxi Steel and Iron (Group)Co., Ltd. (hereinafter referred to as Benxi Iron and Steel) will be reorganized with theassets and liabilities of its steelmaking plant, preliminary rolling plant and hot continuousrolling plant in relation to the steel plate business, it is a joint stock limited companyestablished on June 27, 1997 by issuing domestically listed foreign shares (B shares) byway of public offering.Approved by the China Securities Regulatory Commission, Benxi Iron and Steel Co., Ltd.publicly issued 400,000,000 B shares on the Shenzhen Stock Exchange on June 10, 1997,at an issue price of HK$2.38 per share. On November 3, 1997, it successfully issued120,000,000 RMB ordinary shares (A shares) to the public at an issue price of RMB 5.4per share. The A shares were listed on the Shenzhen Stock Exchange on January 15, 1998.The total share capital is 1,136,000,000 shares. According to the resolutions of therelevant shareholders' meeting of Bengang Steel Plates Co., Ltd. on the shareholdingstructure reform, the “Bengang Steel Plates Co., Ltd. shareholding structure reform plan”,the State-owned Assets Supervision and Administration Commission “Reply on RelevantIssues Concerning Bengang Steel Plates Co., Ltd.’s Equity Separation Reform”, BenxiIron and Steel, the only non-tradable state-owned legal person shareholder of BengangSteel Plates Co., Ltd., in order to obtain the circulation right of the shares held, on 14March 2006, 40,800,000 of the 616,000,000 shares of Bengang Steel Plates were paid toshareholders of Bengang Steel Plates’ A-share tradable shares. The total share capital ofBengang Steel Plates has not changed in this shareholding reform.On July 6, 2006, Benxi Steel Plates obtained the “Zheng Jian Company Zi (2006) No. 126”document issued by the China Securities Regulatory Commission on June 30, 2006.The article approved the issuance of 2 billion RMB ordinary shares by Benxi Iron andSteel to Benxi Iron and Steel for the acquisition of relevant assets of Benxi Iron and Steel.On the same day, Benxi Iron and Steel obtained the document “Zheng Jian Company Zi
(2006) No. 127” issued by the China Securities Regulatory Commission, the articleagreed to exempt Benxi Iron and Steel from the obligation of tender offer due to theacquisition of 2 billion new shares issued by the Company, resulting in the number ofshares held reaching 2.5752 billion shares (accounting for 82.12% of the Company's totalshare capital). On August 28, 2006, with the approval of Shenzhen Branch of ChinaSecurities Depository and Clearing Co., Ltd., Benxi Steel Plates completed theregistration of the newly issued 2 billion shares and restricted sales of shares. OnSeptember 28, 2006, the listing procedures for the non-public issuance of new shares ofBenxi Steel Plates Co., Ltd. were approved by the Shenzhen Stock Exchange. The newissue price: 4.6733 yuan / share.Approved by the China Securities Regulatory Commission’s Zhengjian Xuke [2017] No.1476, Benxi Steel Plate will issue no more than 739,371,534 RMB ordinary shares (Ashares) in a non-public manner to no more than 10 issuers. This non-public offering wascompleted on February 9, 2018, and 739,371,532 shares were actually issued. The newissue price: 5.41 yuan / share. On August 20, 2021, the State-owned Assets Supervisionand Administration Commission of the Liaoning Provincial People's Government(hereinafter referred to as the Liaoning Provincial SASAC) and Ansteel Group Co., Ltd.(hereinafter referred to as the Ansteel Group) signed the “National Assets Supervision andAdministration Commission of the People's Government of Liaoning Province andAnsteel Group Co., Ltd. on the gratuitous transfer of state-owned equity of BensteelGroup Co., Ltd.”. According to the agreement, the State-owned Assets Supervision andAdministration Commission of Liaoning Province transferred its 51% equity of BensteelGroup Co., Ltd. (hereinafter referred to as Bensteel Group) to Ansteel Group for free.After the completion of this gratuitous transfer, Ansteel Group will become thecontrolling shareholder of Bensteel Group, and Ansteel Group will indirectly hold 81.07%of the total share capital of Bengang Iron and Steel Plates.As of June 30, 2023, the Company has issued a total of 4,108,214,747.00 shares, with aregistered capital of RMB 4,108,214,700.00. The registered place is No. 16, Renmin Road,Pingshan District, Benxi City, Liaoning Province. The Company's main business activitiesare: ferrous metal smelting and rolling processing. The parent company of the Companyis Benxi Steel and Iron (Group) Co., Ltd., and the actual controller of the company isAnsteel Group Co., Ltd.
2. Scope of consolidated financial statements
For details about the relevant information of the Company's subsidiaries, please refer to“VII. Interests in Other Entities” in this note.For details of changes in the scope of consolidation during the reporting period, pleaserefer to “VI. Changes in the Scope of Consolidation” in this note.
II. Basis of Preparation of Financial Statements
1. Basis of Preparation
The financial statements are prepared in accordance with the “Accounting Standards forBusiness Enterprises - Basic Standards” and relevant specific accounting standards,application guidance for Accounting Standards for Business Enterprises, interpretationsfor Accounting Standards for Business Enterprises and other related provisions issued bythe Ministry of Finance (hereinafter collectively referred to as “Accounting Standards forBusiness Enterprises”), and “Information Disclosure Rules for Companies of Securitiesfor Public Issuance No. 15 – General Regulations for Financial Statements” issued by theChina Securities Regulatory Commission.
2. Going Concern
These financial statements are prepared on going concern basis. The Company hasevaluated that it has the ability to continue operating within 12 months from the end of thereporting period, and there are no matters that cause serious doubts about the ability tocontinue as going concern.
III. Significant Accounting Policies and Accounting Estimates
Notes for specific accounting policies and accounting estimates:
The following disclosures have covered the specific accounting policies and accountingestimates that are adopted by the Company based on the actual production and operationcharacteristics. For details, please refer to Note III.10 Financial instruments, III.11Inventories, III.15 Fixed assets, III.24 Revenue in this notes.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements have been prepared in compliance with the requirements of theAccounting Standards for Business Enterprises by the Ministry of Finance to truly andcompletely present the consolidated and the parent company’s financial position of the
Company as at 30 June 2023 and of the consolidated and the parent company’s financialperformance and cash flows from January to June 2023.
2. Accounting Period
The Company's accounting year is from 1 January to 31 December.
3. Operating Cycle
The Company's operating cycle is 12 months.
4. Functional Currency
The Company adopts RMB as the functional currency.
5. Accounting Treatment of Business Combinations under Common Control and not
under Common ControlBusiness combination under common control: The assets and liabilities acquired by themerging party in the business combination (including the goodwill formed by theacquisition of the merged party by the ultimate controlling party) shall be measured on thebasis of the book value of the assets and liabilities of the merged party on the merger datein the consolidated financial statements of the ultimate controlling party. The differencebetween the book value of the net assets obtained in the merger and the book value of themerger consideration paid (or the total par value of the issued shares) is adjusted to theshare premium in the capital reserve, and if the share premium in the capital reserve is notenough to offset, the retained earnings are adjusted.Business combination not under common control: The combination cost is the fair valueof the assets paid, liabilities incurred or assumed, and equity securities issued by thepurchaser in order to obtain the control of the purchased party on the date of purchase.The Company shall recognize the positive balance between the combination costs and thefair value of the identifiable net assets it obtains from the acquiree as goodwill. TheCompany shall treat the negative balance between the combination costs and the fairvalue of the identifiable net assets it obtains from the acquiree into the profits and lossesof the current period. The identifiable assets, liabilities and contingent liabilities of theacquiree acquired in the merger that meet the recognition conditions are measured at fairvalue on the date of purchase.The direct related expenses incurred for the business combination shall be included in the
current profit and loss when incurred. The transaction costs of issuing equity securities ordebt securities for business combination shall be included in the initial recognitionamount of equity securities or debt securities.
6. Preparation Method of Consolidated Financial Statements
(1) Scope of consolidation
The scope of consolidation of consolidated financial statements is determined onthe basis of control, and the scope of consolidation includes the Company and allsubsidiaries. Control means that the company has power over the investee, enjoysvariable returns by participating in the relevant activities of the investee, and hasthe ability to use its power over the investee to affect its return.
(2) Consolidation procedure
The Company regards the entire enterprise group as an accounting entity, andprepares consolidated financial statements in accordance with unified accountingpolicies to reflect the overall financial status, operating results and cash flow of theenterprise group. The impact of internal transactions between the Company and itssubsidiaries and between subsidiaries shall be offset. If the internal transactionshows that the relevant asset has an impairment loss, the full amount of the lossshall be recognized.If the accounting policy and accounting period adopted by the subsidiary areinconsistent with the Company, necessary adjustments shall be made in accordancewith the Company's accounting policy and accounting period when preparing theconsolidated financial statements.Subsidiary owners' equity, net profit and loss for the current period and the share ofminority shareholders in the current comprehensive income are listed separatelyunder the owner's equity item in the consolidated balance sheet, the net profit itemin the consolidated income statement, and the total comprehensive income item.The current loss shared by the minority shareholders of the subsidiary exceeds thebalance formed by the minority shareholders in the initial owner's equity of thesubsidiary, offsetting the minority shareholders' equity.
1) Add a subsidiary or business
During the reporting period, if a subsidiary or business is added due to a business
combination under the same control, the operating results and cash flows of thesubsidiary or business combination from the beginning of the current period to theend of the reporting period shall be included in the consolidated financialstatements. At the same time, the opening balance of the consolidated financialstatements and the relevant items in the comparative statements shall be adjusted,as if the consolidated reporting entity has always existed since the time when theultimate controlling party began to control it.
During the reporting period, if a subsidiary or business is added due to a businesscombination not under the same control, it shall be included in the consolidatedfinancial statements from the purchase date on the basis of the fair value of eachidentifiable asset, liability and contingent liability determined on the purchase date.
2) Disposal of subsidiaries
①General treatment
When the control of the investee is lost due to the disposal of part of the equityinvestment or other reasons, the remaining equity investment after disposal shall beremeasured according to its fair value on the date of loss of control.The difference between the sum of the consideration obtained from the disposal ofequity and the fair value of the remaining equity, minus the share of the originalsubsidiary’s net assets calculated continuously from the purchase date or themerger date and the sum of goodwill calculated according to the originalshareholding ratio, the difference will be included in the investment income of theperiod when the control right is lost. Other comprehensive income related to theequity investment of the original subsidiary that can be reclassified into profit orloss, and other changes in owner's equity accounted for under the equity methodare converted into current investment income when control is lost.
②Step-by-step disposal of subsidiaries
Where the equity investment in a subsidiary is disposed of step by step throughmultiple transactions until it loses control, the terms, conditions and economicimpact of each transaction for disposing of the equity investment in a subsidiarymeet one or more of the following conditions, it usually indicates that the multipletransactions are a package deal:
ⅰ.These transactions were entered into simultaneously or taking into account the
mutual influence;ⅱ.These transactions were entered into simultaneously or taking into account themutual influence;ⅲ.The occurrence of one transaction depends on the occurrence of at least oneother transaction;ⅳ.A transaction is not economical alone, but it is economical when consideredtogether with other transactions.If each transaction belongs to a package deal, each transaction shall be accountedfor as a transaction for disposing of a subsidiary and losing control; The differencebetween each disposal price before the loss of control and the share of thesubsidiary's net assets corresponding to the disposal investment is recognized asother comprehensive income in the consolidated financial statements, and istransferred to the current profit and loss of the loss of control when the control islost.If each transaction does not belong to a package deal, before the loss of control, theequity investment of the subsidiary is partially disposed without losing control;when the control is lost, the accounting treatment is carried out according to thegeneral treatment method for disposing of subsidiaries.
3) Purchase a minority stake in a subsidiary
The difference between the newly acquired long-term equity investment due to thepurchase of minority shares and the share of net assets that should be enjoyed bythe subsidiary continuously calculated from the purchase date or the merger datebased on the newly increased shareholding ratio will adjust the share premium inthe capital reserve in the consolidated balance sheet, and if the share premium inthe capital reserve is insufficient to offset, the retained earnings will be adjusted.
4) Partial disposal of an equity investment in a subsidiary without loss of control
The difference between the disposal price and the share of the subsidiary’s netassets that has been continuously calculated since the purchase date or the mergerdate corresponding to the disposal of the long-term equity investment will adjustthe share premium in the capital reserve in the consolidated balance sheet, and ifthe share premium in the capital reserve is insufficient to offset, the retainedearnings will be adjusted.
7. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
Joint arrangements are divided into joint operations and joint ventures.Joint operation refers to a joint venture arrangement in which the joint venture partyenjoys the assets related to the arrangement and assumes the liabilities related to thearrangement.The Company confirms the following items related to the interest share in the jointoperation:
(1) Confirm the assets held individually by the Company and the assets jointly held by theCompany;
(2) Confirm the liabilities borne by the Company alone and the liabilities jointly borne bythe Company;
(3) Recognition of income from the sale of the Company's share of the output of jointoperations;
(4) Recognize the income generated by the joint operation from the sale of outputaccording to the share of the Company;
(5) Confirm the expenses incurred independently, and confirm the expenses incurred injoint operation according to the share of the Company.The Company's investment in joint ventures is accounted for using the equity method. Fordetails, please refer to “III.13 Long-term equity investments” in this note.
8. Determination Criteria for Cash and Cash Equivalents
Cash refers to the Company's cash on hand and deposits that can be used for payment atany time. Cash equivalents refer to short-term, highly liquid investments held by theCompany that are easily convertible into known amounts of cash and have little risk ofvalue change.
9. Foreign Currency Transactions and Translation of Foreign Currency Financial
Statements
(1) Foreign currency business
For foreign currency business, the spot exchange rate on the transaction date isused as the conversion rate to convert the foreign currency amount into RMB forbookkeeping.The balance of foreign currency monetary items on the balance sheet date istranslated at the spot exchange rate on the balance sheet date. The resulting
exchange differences, except for the exchange differences arising from foreigncurrency special loans related to the acquisition and construction of assets eligiblefor capitalization are treated in accordance with the principle of capitalization ofborrowing costs, are included in the current profit and loss.
(2) Translation of foreign currency financial statements
The asset and liability items in the statement of financial position are converted atthe spot exchange rate on the balance sheet date; the owner's equity items areconverted at the spot exchange rate at the time of occurrence except for“Undistributed profit”. The income and expense items in the statement of profit orloss and other comprehensive income shall be converted at the spot exchange rateon the transaction date.When disposing of an overseas operation, the translation difference of the foreigncurrency financial statements related to the overseas operation shall be transferredfrom the owner's equity item to the current profit and loss of the disposal.
10. Financial Instruments
When the Company becomes a party to a financial instrument contract, it recognizes afinancial asset, financial liability or equity instrument.
(1) Classification of financial instruments
According to the Company's business model for managing financial assets and thecontractual cash flow characteristics of financial assets, financial assets areclassified into: financial assets measured at amortized cost, financial assetsmeasured at fair value through other comprehensive income and financial assets atfair value through profit or loss.
The Company classifies financial assets that meet the following conditions and arenot designated as financial assets at fair value through profit or loss as financialassets at amortized cost:
- The business model is to collect contractual cash flows;- Contractual cash flows are only payments of principal and interest on theprincipal amount outstanding.The Company classifies financial assets that meet the following conditions and arenot designated as financial assets at fair value through profit or loss as financial
assets at fair value through other comprehensive income (debt instruments):
- The business model aims at both collecting contractual cash flows and sellingthe financial asset;- Contractual cash flows are only payments of principal and interest on theprincipal amount outstanding.For non-trading equity instrument investments, the Company can irrevocablydesignate them as financial assets (equity instruments) measured at fair value andwhose changes are included in other comprehensive income at the time of initialrecognition. The designation is made on an individual investment basis, and theunderlying investment meets the definition of an equity instrument from theperspective of the issuer.
Except for the above financial assets measured at amortized cost and at fair valuethrough other comprehensive income, the Company classifies all other financialassets as financial assets at fair value through profit or loss.
Financial liabilities are classified at initial recognition into: financial liabilities atfair value through profit or loss and financial liabilities at amortized cost.
Financial liabilities that meet one of the following conditions can be designated asfinancial liabilities at fair value through profit or loss at the time of initialmeasurement:
1) Financial liabilities that meet one of the following conditions can be designatedas financial liabilities at fair value through profit or loss at the time of initialmeasurement:
2) According to the corporate risk management or investment strategy stated informal written documents, manage and evaluate the performance of financialliability portfolios or financial assets and financial liability portfolios based on fairvalue, and report to key management personal within the Company on this basis.
3) This financial liability contains embedded derivatives that need to be separatedseparately.
(2) Recognition basis and measurement method of financial instruments
1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include notes receivable, accountsreceivable, other receivables, long-term receivables, debt investments, etc., and areinitially measured at fair value, and relevant transaction costs are included in theinitially recognized amount; excluding that the accounts receivable of the majorfinancing component and the accounts receivable of the financing component thatthe Company decides not to consider for no more than one year shall be initiallymeasured at the contract transaction price.The interest calculated using the effective interest rate method during the holdingperiod is included in the current profit and loss.When recovering or disposing, the difference between the price obtained and thebook value of the financial asset is included in the current profit and loss.
2) Financial assets at fair value through other comprehensive income (debtinstruments)Financial assets (debt instruments) measured at fair value and whose changes areincluded in other comprehensive income include receivables financing, other debtinvestments, etc., and are initially measured at fair value, and relevant transactioncosts are included in the initial recognition amount. The financial assets aresubsequently measured at fair value, and changes in fair value are included in othercomprehensive income, except for interest calculated using the effective interestrate method, impairment losses or gains, and exchange gains and losses.When derecognition is terminated, the accumulated gains or losses previouslyincluded in other comprehensive income are transferred out of othercomprehensive income and included in current profit and loss.
3) Financial assets (equity instruments) measured at fair value through othercomprehensive incomeFinancial assets (equity instruments) measured at fair value through othercomprehensive income, including other equity instrument investments, are initiallymeasured at fair value, and relevant transaction costs are included in the initiallyrecognized amount. The financial assets are subsequently measured at fair value,and changes in fair value are included in other comprehensive income. Dividendsobtained are included in current profit and loss.When derecognition is terminated, the accumulated gains or losses previously
included in other comprehensive income are transferred out of othercomprehensive income and included in retained earnings.
4) Financial assets measured at fair value through profit or loss
Financial assets measured at fair value through profit or loss include transactionalfinancial assets, derivative financial assets, and other non-current financial assets,etc., and are initially measured at fair value, and relevant transaction costs areincluded in current profit or loss. The financial assets are subsequently measured atfair value, and changes in fair value are included in current profit and loss.
5) Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value and whose changes are included incurrent profit and loss include trading financial liabilities and derivative financialliabilities, etc., and are initially measured at fair value, and relevant transactioncosts are included in current profit and loss. The financial liabilities aresubsequently measured at fair value, and changes in fair value are included incurrent profit and loss.When derecognition is terminated, the difference between its book value and theconsideration paid is included in the current profit and loss.
6) Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost include short-term loans, notespayable, accounts payable, other payables, long-term loans, bonds payable, andlong-term payables, and are initially measured at fair value, and relevanttransaction costs are included in the initial recognition amount.The interest calculated using the effective interest rate method during the holdingperiod is included in the current profit and loss.When derecognition is terminated, the difference between the consideration paidand the book value of the financial liability is included in the current profit andloss.
(3) Derecognition of financial assets and transfer of financial assets
When one of the following conditions is met, the Company derecognizes financialassets:
- Termination of contractual rights to receive cash flows from financial assets;- The financial asset has been transferred, and almost all the risks and rewards ofownership of the financial asset have been transferred to the transferee;- The financial assets have been transferred. Although the Company neithertransfers nor retains almost all the risks and rewards of ownership of the financialassets, it does not retain control over the financial assets.
When a financial asset is transferred, if almost all the risks and rewards ofownership of the financial asset are retained, the financial asset will not bederecognized.
When judging whether the transfer of financial assets meets the above conditionsfor derecognition of financial assets, the principle of substance over form isadopted. The Company distinguishes the transfer of financial assets into thetransfer of financial assets as a whole and the transfer of parts. If the overalltransfer of financial assets meets the conditions for derecognition, the differencebetween the following two amounts shall be included in the current profit and loss:
1) The book value of the financial asset transferred;
2) The consideration received due to the transfer, and the cumulative amount ofchanges in fair value that were originally included in the owner’s equity (if thefinancial asset involved in the transfer is a financial asset (debt instrument) that ismeasured at fair value and whose changes are included in other comprehensiveincome).
If the partial transfer of financial assets meets the conditions for derecognition, theoverall book value of the transferred financial assets shall be apportioned betweenthe derecognized part and the unterminated part according to their respectiverelative fair values, and the difference between the following two amounts shall beincluded in current profit and loss:
1) The book value of the derecognized portion;
2) The consideration for the derecognition part, and the amount corresponding tothe derecognition part of the accumulative amount of fair value changes that wereoriginally included in the owner’s equity (the financial assets involved in thetransfer are financial assets that are measured at fair value and whose changes are
included in other comprehensive income ( in the case of debt instruments)).
If the transfer of financial assets does not meet the conditions for derecognition, thefinancial assets shall continue to be recognized, and the consideration receivedshall be recognized as a financial liability.
(4) Derecognition of financial liabilities
If all or part of the current obligation of a financial liability has been discharged,the financial liability or a part thereof shall be derecognized; if the Company signsan agreement with the creditor to replace the existing financial liability byassuming a new financial liability, and if the contract terms of the new financialliability and the existing financial liability are substantially different, the existingfinancial liability shall be derecognized and the new financial liability shall berecognized at the same time.If a substantive modification is made to all or part of the contract terms of anexisting financial liability, the existing financial liability or a part thereof shall bederecognized, and the financial liability after the modified terms shall berecognized as a new financial liability.When all or part of a financial liability is derecognized, the difference between thebook value of the derecognized financial liability and the consideration paid(including non-cash assets transferred out or new financial liabilities assumed) isincluded in the current profit and loss.If the Company repurchases part of the financial liabilities, the book value of thefinancial liabilities as a whole shall be allocated on the date of repurchaseaccording to the relative fair value of the part that continues to be recognized andthe part that is derecognized. The difference between the book value allocated tothe derecognized part and the consideration paid (including non-cash assetstransferred out or new financial liabilities assumed) is included in the current profitand loss.
(5) Determination of fair value of financial assets and financial liabilities
For financial instruments with an active market, their fair value is determined bythe quoted price in the active market. For financial instruments that do not have anactive market, valuation techniques are used to determine their fair value. When
valuing, the Company adopts valuation techniques that are applicable in the currentsituation and supported by sufficient available data and other information, andselect inputs consistent with the characteristics of assets or liabilities considered bymarket participants in transactions of related assets or liabilities, and givepreference to relevant observable inputs. Use unobservable input values only whenthe relevant observable input values are not available or practicable to obtain.
(6) Test method and accounting treatment method for impairment of financial
assetsThe Company estimates the expected credit losses of financial assets measured atamortized cost, financial assets at fair value through other comprehensive income(debt instruments) and financial guarantee contracts, either individually or incombination.The Company considers reasonable and well-founded information about pastevents, current conditions, and forecasts of future economic conditions, and usesthe risk of default as the weight to calculate the difference between the cash flowreceivable by the contract and the cash flow expected to be received. Theprobability-weighted amount of the present value of the recognized expected creditloss. If the credit risk of the financial instrument has increased significantly sincethe initial recognition, the Company shall measure its loss provision at an amountequivalent to the expected credit loss of the financial instrument throughout itsduration. If the credit risk of the financial instrument has not increased significantlysince the initial recognition, the Company shall measure its loss provision at anamount equivalent to the expected credit loss of the financial instrument within thenext 12 months. The resulting increase or reversal of the loss provision is includedin the current profit and loss as an impairment loss or gain.The Company compares the default risk of financial instruments on the balancesheet date with the risk of default on the initial recognition date to determine therelative change in the default risk of financial instruments during the expectedduration, and to assess the credit risk of financial instruments has increasedsignificantly since initial recognition. Usually overdue for more than 30 days, theCompany considers that the credit risk of the financial instrument has increasedsignificantly, unless there is conclusive evidence to prove that the credit risk of thefinancial instrument has not increased significantly since the initial recognition.
If the credit risk of a financial instrument is relatively low on the balance sheet date,the Company considers that the credit risk of the financial instrument has notincreased significantly since initial recognition.If there is objective evidence that a certain financial asset has been credit-impaired,the Company shall make provision for impairment of the financial asset on anindividual basis. For the accounts receivables and contract assets formed by thetransactions regulated by “Accounting Standards for Business Enterprises No. 14 –Revenue” (2017), regardless of whether they contain significant financingcomponents, the Company calculates them according to the expected credit lossequivalent to the entire duration to measure its loss allowance.For lease receivables, the Company chooses to measure its loss provision at anamount equivalent to the expected credit loss during its full lifetime.
If the Company no longer reasonably expects that the cash flow of the financialasset contract can be recovered in whole or in part, it will directly write down thebook balance of the financial assets.
11. Inventories
(1) Classification and costs of inventories
Inventory is classified into: materials in transit, raw materials, turnover materials,stock goods, work in progress, goods delivered, and materials for commissionedprocessing, etc.Inventories are initially measured at cost, and inventory costs include purchasecosts, processing costs and other expenses incurred to bring the inventories to theircurrent location and state.
(2) Valuation method for dispatched inventory
Inventories are priced using the weighted average method when they aredispatched.
(3) Basis for determining the net realizable value of different categories of
inventoriesOn the balance sheet date, inventories shall be measured at the lower of cost andnet realizable value. When the cost of inventory is higher than its net realizable
value, a provision for price of inventory decline shall be made. The net realizablevalue of inventories refers to the estimated selling price of inventories in ordinaryactivities minus the estimated costs to be incurred until completion, estimated salesexpenses and related taxes.Inventories of finished goods, goods in stock and materials for sale, etc., which aredirectly used for sale, are determined by the estimated selling price of the inventoryminus the estimated sales expenses and relevant taxes and fees during the normalproduction and operation process to determine the net realizable value. Inventoryof materials that need to be processed, in the normal production and operationprocess, is determined by the estimated selling price of the finished product minusthe estimated cost to be incurred until completion, estimated sales expenses andrelated taxes and fees to determine the net realizable value. For inventories held forthe execution of sales contracts or service contracts, the net realizable value iscalculated based on the contract price. If the quantity of inventories held exceedsthe quantity ordered in the sales contract, the net realizable value of the excessinventory is calculated based on the general sales price.
After provision for inventory decline, if the factors affecting the reduction ofinventory value before have disappeared, resulting in the net realizable value of theinventory being higher than its book value, it shall be reversed within the amountof the original provision for inventory decline and the reversed amount is includedin the current profit and loss.
(4) Inventory system
The Company adopts the 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 Assets
(1) Recognition method and standard of contract assets
The Company presents contract assets or contract liabilities in the balance sheetaccording to the relationship between performance obligations and customer
payments. The Company's right to receive consideration for transferring goods orproviding services to customers (and this right depends on factors other than thepassage of time) is listed as contract assets. Contract assets and contract liabilitiesunder the same contract are presented on a net basis. The Company's unconditional(depending only on the passage of time) right to collect consideration from thecustomer is shown separately as receivables.
(2) Determination method and accounting treatment method of expected credit
loss of contract assetsFor details, please refer to “III.10 (6) Financial Instruments - Test Method andAccounting Treatment Method for Impairment of Financial Assets" in this note.
13. Long-term Equity Investments
(1) Judgment criteria for joint control and significant influence
Joint control refers to the shared control of an arrangement in accordance with therelevant agreement, and the relevant activities of the arrangement must beunanimously agreed by the parties sharing the control right before decisions can bemade. If the Company and other joint venture parties exercise joint control over theinvested unit and have rights to the net assets of the invested unit, the invested unitis a joint venture of the Company.Significant influence refers to the right to participate in the decision-making of theinvestee's financial and operating decisions, but cannot control or jointly controlthe formulation of these policies with other parties. If the Company is able to exertsignificant influence on the invested unit, the invested unit is an associate of theCompany.
(2) Determination of initial investment cost
1) Long-term equity investment formed by business combination
For a long-term equity investment in a subsidiary formed by a businesscombination under the same control, the initial investment cost of the long-termequity investment shall be the share of the book value of the owner's equity of themerged party in the consolidated financial statements of the ultimate controllingparty on the date of combination. For the difference between the initial investmentcost of long-term equity investment and the book value of the consideration paid,
the equity premium in the capital reserve shall be adjusted; if the equity premiumin the capital reserve is insufficient to offset, the retained earnings shall beadjusted.For a long-term equity investment in a subsidiary formed by a businesscombination not under the same control, the initial investment cost of the long-termequity investment shall be the combination cost determined on the purchase date.
2) Long-term equity investment obtained through other means than businesscombinationFor long-term equity investment acquired by cash payment, the actual purchaseprice paid shall be regarded as the initial investment cost.For long-term equity investment obtained by issuing equity securities, the initialinvestment cost shall be the fair value of the issued equity securities.
(3) Subsequent measurement and profit or loss recognition method
1) Long-term equity investment accounted for by cost method
The Company's long-term equity investment in subsidiaries is accounted for usingthe cost method, unless the investment meets the conditions of being held for sale.Except for the price actually paid when acquiring the investment or the cashdividends or profits that have been declared but not yet distributed included in theconsideration, the Company recognizes the current investment income according tothe cash dividends or profits declared by the invested unit.
2) Long-term equity investment accounted for by equity method
Long-term equity investments in associates and joint ventures are accounted forusing the equity method. If the initial investment cost is greater than the differencebetween the share of the fair value of the identifiable net assets of the investee thatshould be enjoyed at the time of investment, the initial investment cost of thelong-term equity investment will not be adjusted; The difference between the initialinvestment cost and the share of the fair value of the identifiable net assets of theinvestee that should be enjoyed at the time of investment shall be included in thecurrent profit and loss, and the cost of long-term equity investment shall beadjusted at the same time.The Company recognizes the investment income and other comprehensive income
respectively according to the share of the net profit or loss and othercomprehensive income realized by the invested unit that it should enjoy or share,and adjust the book value of the long-term equity investment at the same time; Thebook value of the long-term equity investment shall be correspondingly reducedaccording to the portion of the profits or cash dividends declared by the investee tobe distributed; For other changes in the owner's equity of the investee other thannet profit and loss, other comprehensive income and profit distribution (referred toas “other changes in owner’s equity”), the book value of the long-term equityinvestment is adjusted and included in the owner's equity.When confirming the share of the investee's net profit or loss, other comprehensiveincome and other changes in owner's equity, it is based on the fair value of theinvestee's identifiable net assets when the investment is obtained, and inaccordance with the Company's accounting policies and accounting periods. It isconfirmed after adjusting the net profit and other comprehensive income of theinvested unit.The unrealized profit and loss of internal transactions between the Company and itsassociates and joint ventures shall be calculated according to the share attributableto the Company and offset, investment income is recognized on this basis, exceptthat the assets invested or sold constitute a business. If the unrealized internaltransaction loss with the invested unit is an asset impairment loss, it shall berecognized in full.The Company’s net losses to joint ventures or joint ventures, in addition to theobligation to bear additional losses, are limited to zero when the book value oflong-term equity investments and other long-term interests that substantiallyconstitute net investments in joint ventures or joint ventures are reduced to zero. Ifthe joint venture or associated enterprise realizes net profit in the future, theCompany shall restore the recognition of the profit share after the share of theprofit makes up for the share of the unrecognized loss.
3) Disposal of long-term equity investment
For the disposal of long-term equity investment, the difference between its bookvalue and the actual acquisition price shall be included in the current profit andloss.If part of the long-term equity investment accounted for by the equity method is
disposed of, and the remaining equity is still accounted for by the equity method,the other comprehensive income recognized by the original equity method shall becarried forward on the same basis as the invested entity’s direct disposal of relatedassets or liabilities and shall be carried forward in corresponding proportions,changes in other owners' equity are transferred to the current profit and loss inproportion.If the joint control or significant influence on the invested unit is lost due to thedisposal of equity investment and other reasons, other comprehensive incomerecognized by the original equity investment due to the adoption of equity methodaccounting, when the equity method of accounting is terminated, the accountingtreatment is carried out on the same basis as the investee directly disposing ofrelated assets or liabilities, and other changes in owner's equity are all transferred tothe current profit and loss when the equity method of accounting is terminated.If the control over the invested unit is lost due to the disposal of part of the equityinvestment, etc., when preparing individual financial statements, if the remainingequity can exercise joint control or significant influence on the invested unit, itshall be accounted for using the equity method. And the remaining equity isdeemed to be adjusted using the equity method since it is acquired, and othercomprehensive income recognized before obtaining the control of the investedcompany is carried forward on the same basis as the invested company's directdisposal of related assets or liabilities. Changes in other owners' equity due to theadoption of equity method accounting and confirmation are carried forward to thecurrent profit and loss in proportion; If the remaining equity cannot exercise jointcontrol or exert significant influence on the invested unit, it is recognized as afinancial asset. The difference between the fair value and the book value on thedate when the control is lost is included in the current profit and loss, and all othercomprehensive income and other changes in owner's equity recognized beforeobtaining the control of the invested entity are all carried forward.If the equity investment in a subsidiary is disposed of step by step through multipletransactions until the control is lost, if it belongs to a package deal, each transactionshall be accounted for as a transaction for disposing of the equity investment in thesubsidiary and losing control; The difference between each disposal price beforethe loss of control and the book value of the long-term equity investmentcorresponding to the disposed equity is first recognized as other comprehensive
income in the individual financial statements. When the control right is lost, it willbe transferred to the current profit and loss of the loss of control right. If it does notbelong to a package deal, each transaction shall be accounted for separately.
14. Investment properties
Investment properties refers to properties held for the purpose of earning rent or capitalappreciation, or both, including leased land use rights, land use rights held and prepared tobe transferred after appreciation, leased buildings (Including buildings that are built forrent after self-construction or development activities are completed, and buildings that arein the process of being built or developed for future rent).Subsequent expenditures related to investment properties are included in the cost ofinvestment properties when the relevant economic benefits are likely to flow in and thecost can be measured reliably; otherwise, they are included in the current profit and losswhen incurred.The Company adopts the cost model to measure the existing investment properties. Thesame depreciation policy as the Company's fixed assets is adopted for the investmentproperties measured according to the cost model - buildings for lease, and the sameamortization policy as for intangible assets is adopted for the land use right for lease.
15. Fixed Assets
(1) Recognition and initial measurement of fixed assets
Fixed assets refer to tangible assets that are held for the production of goods,provision of labor services, lease or operation and management, and have a usefullife of more than one accounting year.Fixed assets are recognized when the following conditions are met at the same time:
1) The economic benefits related to the fixed assets are probable to flow into theCompany;
2) The cost of the fixed asset can be measured reliably.
Fixed assets are initially measured at cost (and taking into account the impact ofestimated disposal costs).Subsequent expenditures related to fixed assets are included in the cost of fixedassets when the related economic benefits are likely to flow in and the cost can bereliably measured; for the replaced part, its book value is derecognized;All other subsequent expenses are included in the current profit and loss when
incurred.
(2) Depreciation method
The depreciation of fixed assets is classified and accrued using the average-yearmethod, and the depreciation rate is determined according to the category of fixedassets, estimated service life and estimated net residual value rate. For fixed assetswith provision for depreciation, the depreciation amount will be determinedaccording to the book value after deduction of provision for depreciation and theremaining useful life in the future period. If the service life of each component ofthe fixed asset is different or it provides economic benefits to the Company indifferent ways, different depreciation rates or depreciation methods should beselected to accrue depreciation separately.The depreciation methods, depreciation period, scrap value rate and annualdepreciation rate of various fixed assets are as follows:
Category | Depreciation method | Depreciation period (years) | Scrap value rate (%) | Annual depreciation rate (%) |
Property and plant | Average Years Method | 5 | 2.38 | 40 |
Mechanical equipment | Average Years Method | 5 | 3.96-5.59 | 17-24 |
Transport and other equipment | Average Years Method | 5 | 7.92-19.00 | 5-12 |
(3) Disposal of fixed assets
When a fixed asset is disposed of, or it is not expected to generate economicbenefits through use or disposal, the fixed asset is derecognized. The income fromthe sale, transfer, retirement or damage of fixed assets after deducting their bookvalue and related taxes and fees is included in the current profit and loss.
16. Construction in Progress
The cost of construction in progress is measured by the actual cost incurred. Actual costsinclude construction costs, installation costs, borrowing costs eligible for capitalizationand other necessary expenditures incurred before the construction in progress reaches theintended usable state. When the construction in progress reaches the intended usable state,
it will be transferred to fixed assets and depreciation will be accrued from the next month.
17. Borrowing Costs
(1) Recognition principles for capitalization of borrowing costs
The borrowing expenses incurred by the Company, which can be directlyattributable to the purchase, construction or production of assets eligible forcapitalization, shall be capitalized and included in the cost of relevant assets; otherborrowing expenses shall be recognized as expenses based on the amount incurredwhen they occur, and shall be calculated and included in current profit and loss.Assets eligible for capitalization refer to assets such as fixed assets, investment realestate, and inventories that require a long period of purchase, construction orproduction activities to reach the intended usable or salable state.
(2) Period of capitalization of borrowing costs
The capitalization period refers to the period from the start of capitalization ofborrowing costs to the cessation of capitalization, excluding the period ofsuspension of capitalization of borrowing costs.Borrowing costs start to be capitalized when the following conditions are met at thesame time:
1) Asset expenditures have occurred, and asset expenditures include expendituresincurred in the form of cash payments, transfer of non-cash assets, or assumptionof interest-bearing debts for the purchase, construction or production of assetseligible for capitalization;
2) Borrowing costs have been incurred;
3) The acquisition, construction or production activities necessary to make the asset
ready for use or sale have started.Capitalization of borrowing costs stops when the purchased, constructed orproduced assets eligible for capitalization have reached the intended usable orsalable state.
(3) Suspension of capitalization period
Capitalization of borrowing costs shall be suspended if the acquisition,construction or production process of an asset eligible for capitalization isinterrupted abnormally and the interruption lasts for more than 3 months; If the
interruption is a necessary procedure for the purchased, constructed or producedassets eligible for capitalization to reach the intended usable state or salable state,the borrowing costs will continue to be capitalized. Borrowing costs incurredduring the interruption period are recognized as current profit and loss, and theborrowing costs continue to be capitalized after the acquisition and construction ofassets or production activities resume.
(4) Calculation method of borrowing cost capitalization rate and capitalized
amountFor special loans borrowed for the purchase, construction or production of assetseligible for capitalization, the capitalized amount of borrowing costs is determinedby the amount of the borrowing costs actually incurred in the current period of thespecial borrowing minus the interest income obtained by depositing the unusedborrowing funds in the bank or the investment income obtained from the temporaryinvestment.For general borrowings used for the acquisition, construction or production ofassets eligible for capitalization, calculate and determine the amount of borrowingcosts that should be capitalized for general borrowings by multiplying the weightedaverage of asset expenditures that exceed the portion of special borrowingsmultiplied by the capitalization rate of general borrowings. The capitalization rateis determined based on the weighted average actual interest rate of generalborrowings.During the capitalization period, the exchange difference between the principal andinterest of foreign currency special loans shall be capitalized and included in thecost of assets eligible for capitalization. The exchange difference arising from theprincipal and interest of other foreign currency loans other than foreign currencyspecial loans is included in the current profit and loss.
18. Intangible Assets
(1) Valuation method of intangible assets
1) Initially measured at cost when the Company acquires intangible assets
The cost of purchased intangible assets includes the purchase price, relevant taxesand other expenditures that are directly attributable to making the asset reach itsintended use.
2) Subsequent measurement
When acquiring intangible assets, analyze and judge their service life.For intangible assets with limited service life, they are amortized within the periodof bringing economic benefits to the enterprise; if the period of intangible assetsbringing economic benefits to the enterprise cannot be foreseen, they are regardedas intangible assets with indefinite service life and shall not be amortized.
(2) Estimated useful life of intangible assets with limited useful life
Item | Expected useful life | Amortization method | Residual rate | Basis for expected useful life |
Land use rights | 50 years | Average Years Method | 0 | Land use right certificate |
(3) Judgment basis for intangible assets with indefinite useful life and procedures
for reviewing their useful lifeAs of the end of the reporting period, the Company had no intangible assets withindefinite useful life.
(4) Specific criteria for dividing the research phase and development phase
The Company's internal research and development project expenditures are dividedinto research phase expenditures and development phase expenditures.Research phase: The phase of original planned investigation and research activitiesto acquire and understand new scientific or technical knowledge, etc.Development stage: Before commercial production or use, research results or otherknowledge are applied to a certain plan or design to produce new or substantiallyimproved materials, devices, products, etc.
(5) Development phase expenditures qualify for capitalization specific conditions
Expenditures in the research stage are included in the current profit and loss whenincurred. Expenditures in the development stage that meet the following conditionsat the same time are recognized as intangible assets, and expenditures in thedevelopment stage that cannot meet the following conditions are included in thecurrent profit and loss:
1) It is technically feasible to complete the intangible asset so that it can be used or
sold;
2) It has the intention to complete the intangible asset and use or sell it;
3) The way intangible assets generate economic benefits, including the ability toprove that there is a market for the products produced by using the intangible assetor the intangible asset itself has a market, and if the intangible asset will be usedinternally, it can prove its usefulness;
4) Have sufficient technical, financial and other resource support to complete thedevelopment of the intangible asset and have the ability to use or sell the intangibleasset;
5) The expenditure attributable to the development stage of the intangible asset can
be reliably measured.
19. Impairment of Long-term Assets
For long-term equity investment, investment real estate measured by the cost model, fixedassets, construction in progress, right-of-use assets, intangible assets with limited servicelife, oil and gas assets and other long-term assets, if there is any sign of impairment on thebalance sheet date, an impairment test is required. If the results of the impairment testshow that the recoverable amount of the asset is lower than its book value, the differenceshall be recognized as an impairment provision and included in the impairment loss. Therecoverable amount is the higher of the net amount of the asset's fair value minus disposalcosts and the present value of the estimated future cash flow of the asset. Assetimpairment provision is calculated and confirmed on the basis of individual assets. If it isdifficult to estimate the recoverable amount of a single asset, the recoverable amount ofthe asset group is determined based on the asset group to which the asset belongs. Anasset group is the smallest combination of assets that can independently generate cashinflows.For goodwill formed by business combination, intangible assets with indefinite useful life,and intangible assets that have not yet reached the usable state, regardless of whetherthere is any sign of impairment, an impairment test shall be conducted at least at the endof each year.The Company carries out the goodwill impairment test, and the book value of thegoodwill formed by the business combination shall be apportioned to the relevant assetgroups according to a reasonable method from the date of purchase. If it is difficult toallocate to the relevant asset group, it shall be allocated to the relevant asset group
combination. The related asset group or asset group combination is the asset group orasset group combination that can benefit from the synergistic effect of the businesscombination.When performing an impairment test on the relevant asset group or combination of assetgroups containing goodwill, if there is any sign of impairment in the asset group orcombination of asset groups related to goodwill, first perform an impairment test on theasset group or combination of asset groups that does not contain goodwill, calculate therecoverable amount and compare it with the relevant book value to confirm thecorresponding impairment loss. Then conduct an impairment test on the asset group orasset group combination containing goodwill, compare its book value with therecoverable amount, if the recoverable amount is lower than the book value, the amountof the impairment loss shall first be deducted from the book value of the goodwillapportioned to the asset group or asset group combination, then according to theproportion of the book value of other assets except goodwill in the asset group or assetgroup combination, the book value of other assets shall be offset in proportion. Once theabove asset impairment loss is confirmed, it will not be reversed in the subsequentaccounting period.
20. Long-term Deferred Expenses
Long-term deferred expenses refer to various expenses that have occurred but should beborne by the current and subsequent periods with an amortization period of more than oneyear.Long-term deferred expenses are amortized evenly during the beneficiary period.
21. Contract Liabilities
The Company presents contract assets or contract liabilities in the balance sheet accordingto the relationship between performance obligations and customer payments. TheCompany has received or receivable the customer's consideration and the obligation totransfer goods or provide services to the customer is listed as contract liabilities. Contractassets and contract liabilities under the same contract are presented on a net basis.
22. Employee Benefits
(1) Accounting treatment of short-term employee benefits
During the accounting period when employees provide services to the Company,the Company recognizes the actual short-term remuneration as a liability, andincludes it in the current profit and loss or related asset costs.The social insurance premiums and housing provident funds paid by the Companyfor employees, as well as labor union funds and employee education funds drawnaccording to regulations, are paid according to regulations during the accountingperiod when employees provide services to the Company. The accrual basis andaccrual ratio are calculated to determine the corresponding amount of employeeremuneration.The employee welfare expenses incurred by the Company are included in thecurrent profit and loss or the cost of related assets according to the actual amountwhen they actually occur. Among them, non-monetary benefits are measured at fairvalue.
(2) Accounting treatment of post-employment benefits
1) Defined contribution plans
The Company pays the basic endowment insurance and unemployment insurancefor employees according to the relevant regulations of the local government.During the accounting period when the employees provide services to the Company,the amount payable is calculated according to the payment base and proportionstipulated by the local government, recognized as liabilities, and included incurrent profit or loss or related asset cost. In addition, the Company alsoparticipates in the enterprise annuity plan/supplementary pension insurance fundapproved by the relevant state departments. The Company pays premiums to theannuity plan/local social insurance agency according to a certain percentage of thetotal salary of employees, and the corresponding expenditure is included in thecurrent profit and loss or the cost of related assets.
2) Defined benefit plans
The Company has no defined benefit plan.
(3) Accounting treatment of termination benefits
If the Company provides termination benefits to employees, the employee salaryliabilities arising from the termination benefits shall be recognized on the earlier ofthe following two dates and included in the current profit and loss: when theCompany cannot unilaterally withdraw the termination benefits provided due to thetermination of labor relationship plans or layoff proposals; when the Companyrecognizes costs or expenses associated with a restructuring involving the paymentof termination benefits.
23. Provisions
When the obligations related to contingencies meet the following conditions at the sametime, the Company will recognize them as provision:
1) The obligation is a present obligation of the Company;
2) It is probable that the performance of the obligation will result in an outflow ofeconomic benefits from the Company;
3) The amount of the obligation can be measured reliably.
Estimated liabilities are initially measured based on the best estimate of the expenditurerequired to fulfill the relevant current obligations.When determining the best estimate, factors such as risks, uncertainties and time value ofmoney related to contingencies shall be considered comprehensively. If the time value ofmoney has a significant impact, the best estimate is determined after discounting therelevant future cash outflows.If there is a continuous range of required expenditures, and the possibility of occurrenceof various outcomes within this range is the same, the best estimate shall be determinedaccording to the median value within the range; in other cases, the best estimate shall bedealt with in the following situations:
? If a contingency involves a single item, it shall be determined according to the mostlikely amount;? If a contingency involves multiple projects, it shall be calculated and determinedaccording to various possible results and related probabilities.If all or part of the expenditure required to pay off the estimated liability is expected to becompensated by a third party, the compensation amount shall be recognized as an assetseparately when it is basically confirmed that it can be received, and the confirmedcompensation amount shall not exceed the book value of the estimated liability.
The Company shall review the book value of estimated liabilities on the balance sheetdate. If there is conclusive evidence that the book value cannot reflect the current bestestimate, the book value shall be adjusted according to the current best estimate.
24. Revenue
(1) Accounting policies adopted for revenue recognition and measurement
The Company recognizes revenue when the Company fulfills the performanceobligations in the contract, that is, when the customer obtains control over therelevant goods or services. Obtaining the right to control the relevant goods orservices refers to being able to dominate the use of the goods or services and obtainalmost all economic benefits from them.If the contract contains two or more performance obligations, the Company willallocate the transaction price to each individual performance obligation inaccordance with the relative proportion of the stand-alone selling price of the goodsor services promised by each individual performance obligation on the inceptiondate of the contract. The Company measures revenue based on the transaction priceallocated to each individual performance obligation.The transaction price refers to the amount of consideration to which the Companyis expected to be entitled for the transfer of goods or services to the customer,excluding amounts collected on behalf of third parties and amounts expected to berefunded to the customer. The Company determines the transaction price inaccordance with the terms of the contract and in combination with its previouspractices, and when determining the transaction price, it takes into account theinfluence of factors such as variable consideration, significant financingcomponents in the contract, non-cash consideration, and consideration payable tocustomers. The Company determines the transaction price including the variableconsideration at an amount that does not exceed the amount that the accumulatedrecognized revenue is unlikely to be significantly reversed when the relevantuncertainties are eliminated. If there is a significant financing component in thecontract, the Company determines the transaction price based on the amountpayable in cash when the customer obtains the control of the goods or services, anduses the actual interest rate method to amortize the difference between thetransaction price and the contract consideration during the contract period.If one of the following conditions is met, the performance obligation shall be
fulfilled within a certain period of time; otherwise, the performance obligation shallbe fulfilled at a certain point in time:
?The customer obtains and consumes the economic benefits brought by theCompany's performance at the same time as the Company's performance of thecontract.?The customer is able to control the goods under construction during theCompany's performance.?The goods produced by the Company during the performance of the contract haveirreplaceable uses, and the Company has the right to collect payment for theperformance part that has been completed so far during the entire contract period.For performance obligations fulfilled within a certain period of time, the Companyrecognizes revenue according to the progress of the performance within that periodof time, except that the progress of the performance of the contract cannot bereasonably determined. The Company considers the nature of the goods or servicesand adopts the output method or input method to determine the performanceprogress. When the performance progress cannot be reasonably determined, andthe incurred costs are expected to be compensated, the Company shall recognizethe revenue according to the incurred cost amount until the performance progresscan be reasonably determined.For performance obligations fulfilled at a certain point in time, the Companyrecognizes revenue at the point in time when the customer obtains control over therelevant goods or services. When judging whether the customer has obtainedcontrol of the goods or services, the Company considers the following signs:
? The Company has the current right to receive payment for the goods orservices, that is, the customer has a current payment obligation for the goods orservices.? The Company has transferred the legal title to the product to the customer, thatis, the customer already has the legal title to the product.? The Company has transferred the product to the customer in kind, that is, thecustomer has taken possession of the product in kind.? The Company has transferred the main risks and rewards of the ownership ofthe commodity to the customer, that is, the customer has obtained the main risksand rewards of the ownership of the commodity.? The customer has accepted the good or service, etc.
(2) Specific accounting policies for revenue recognition
Contracts for the sale of goods between companies and customers often containonly performance obligations for the transfer of goods or services such as steel.Such performance obligations are performance obligations performed at a certainpoint in time, and the Company recognizes revenue at the point in time when thecustomer obtains control over the relevant goods or services. When judgingwhether the customer has obtained control of the goods or services, the Companyconsiders the following signs: the Company obtains the current right to collect thegoods, the legal ownership of the goods is transferred to the customer, the physicalassets of the goods are transferred to the customer, the Company transfers the mainrisks and rewards of the ownership of the goods to the customer, and the customerhas accepted the goods.
25. Contract Costs
Contract costs include contract fulfillment costs and contract obtaining costs.If the cost incurred by the Company for the performance of the contract does not fallwithin the scope of relevant standards such as inventories, fixed assets or intangible assets,it shall be recognized as an asset as a contract performance cost when the followingconditions are met at the same time:
1) The cost is directly related to a current or anticipated contract;
2) The cost increases the Company's future resources to meet performance obligations;
3) The cost is expected to be recoverable.
If the incremental cost incurred by the Company to acquire the contract is expected to berecoverable, it is recognized as an asset as the cost of acquiring the contract.Assets related to contract costs are amortized on the same basis as the recognition ofgoods or service revenue related to the assets; however, if the amortization period ofcontract acquisition costs does not exceed one year, the Company will include them in thecurrent profit and loss when incurred.
For assets related to contract costs, if the book value is higher than the difference betweenthe following two items, the Company will make provision for impairment for the excesspart and recognize it as asset impairment loss:
1) The remaining consideration expected to be obtained from the transfer of goods or
services related to the asset;
2) The estimated costs to be incurred for the transfer of the related good or service.
If the depreciation factor in the previous period changes later, so that the aforementioneddifference is higher than the book value of the asset, the Company will reverse theoriginal depreciation provision and include it in the current profit and loss, but the bookvalue of the asset after the reversal shall not exceed the book value of the asset on thetransfer-back date assuming no provision for impairment is made.
26. Government Grants
(1) Categories
Government grants are monetary assets or non-monetary assets obtained by theCompany from the government for free. It is divided into government grantsrelated to assets and government grants related to income.Asset-related government grants refer to government grants obtained by theCompany for purchase and construction or to form long-term assets in other ways.Government grants related to income refer to government grants other thangovernment grants related to assets.
The Company classifies government grants as assets-related specific criteria:
government grants obtained by the enterprise and used to purchase and construct orform long-term assets in other ways.The specific criteria for the Company to classify government grants asincome-related are: government grants with specified grant targets other thanasset-related government grants.For government documents that do not clearly specify the grants object, theCompany's judgment basis for classifying the government grants as asset-related orincome-related is as follows: for those that can form long-term assets, the part ofthe government grants corresponding to the asset value shall be regarded as thegovernment grants related to assets, and the rest shall be regarded as thegovernment grants related to income; if it is difficult to distinguish, the governmentgrants as a whole shall be regarded as the government grants related to income.
(2) Timing of recognition
The Company's asset-related government grants are recognized when the
government grants are actually received, and the deferred income is evenlyamortized and transferred to the current profit and loss according to the expectedservice life of the long-term assets from the time the long-term assets are availablefor use.The Company’s government grants related to income are recognized at thefollowing points: if the government grants are actually received and used tocompensate the Company’s related expenses or losses in the future, it will beincluded in the current non-operating income during the period when the relevantexpenses are confirmed; if it is used to compensate the relevant expenses or lossesincurred by the Company, it shall be directly included in the non-operating incomeof the current period when it is obtained.
(3) Accounting treatment
Government grants related to assets are offset against the book value of relatedassets or recognized as deferred income. If it is recognized as deferred income, itshall be included in the current profit and loss in stages in a reasonable andsystematic manner within the useful life of the relevant assets (if it is related to theCompany's ordinary activities, it will be included in other income; if it is notrelated to the Company's ordinary activities, it will be included in non-operatingincome).Government grants related to income, which are used to compensate the relevantcosts or losses of the enterprise in the future period, shall be recognized as deferredincome, and shall be included in the current profit and loss during the period whenthe relevant costs or losses are recognized (if it is related to the Company's ordinaryactivities, it will be included in other income; if it is not related to the Company'sordinary activities, it will be included in non-operating income) or offset relatedcosts or losses; If it is used to compensate the relevant costs or losses incurred bythe Company, it shall be directly included in the current profit and loss (if it isrelated to the Company's ordinary activities, it will be included in other income; ifit is not related to the Company's ordinary activities, it will be included innon-operating income) or offset related costs or losses.
The policy-based preferential loan interest discount obtained by the Company isdivided into the following two situations, and the accounting treatment is carried
out separately:
1) If the finance department allocates interest discount funds to the lending bank,and the lending bank provides loans to the Company at a preferential policy rate,the Company takes the actual amount of the loan received as the entry value of theloan, and calculates it based on the principal of the loan and the policy preferentialrate related borrowing costs.
2) If the finance department directly allocates the interest discount funds to theCompany, the Company will offset the corresponding borrowing costs with thecorresponding discount interest.
27. Deferred Tax Assets and Deferred Tax Liabilities
Income tax includes current income tax and deferred tax. Except for the income taxarising from business mergers and transactions or events that are directly included inowner's equity (including other comprehensive income), the Company includes currentincome tax and deferred tax in current profit and loss.Deferred tax assets and deferred tax liabilities are calculated and recognized based on thedifference (temporary difference) between the tax basis of assets and liabilities and theirbook value.Deferred tax assets recognized for deductible temporary differences shall be limited to theamount of taxable income that is likely to be obtained in the future to offset the deductibletemporary differences. For the deductible losses and tax credits that can be carriedforward to the following years, the corresponding deferred tax assets are recognizedwithin the limit of the future taxable income that is likely to be used to offset thedeductible losses and tax credits .For taxable temporary differences, except for special circumstances, deferred income taxliabilities are recognized.The special circumstances that do not recognize deferred tax assets or deferred taxliabilities include:
? Initial recognition of goodwill;? Transactions or events that are neither business combinations nor affect accountingprofits and taxable income (or deductible losses) when they occur.For taxable temporary differences related to investments in associates and joint ventures,deferred tax liabilities are recognized, unless the Company is able to control the timing ofthe reversal of the temporary difference and the temporary difference is likely not to be
transferred back in the foreseeable future. For the deductible temporary difference relatedto the investment in associates and joint ventures, when the temporary difference is likelyto be reversed in the foreseeable future and the taxable income used to offset thedeductible temporary difference is likely to be obtained in the future, the deferred taxassets are recognized.On the balance sheet date, the deferred tax assets and deferred tax liabilities shall bemeasured at the applicable tax rate during the period when the relevant assets areexpected to be recovered or the relevant liabilities are expected to be paid off inaccordance with the provisions of the tax law.On the balance sheet date, the Company reviews the book value of the deferred tax assets.If it is likely that sufficient taxable income will not be obtained in the future to offset thebenefits of the deferred tax asset, the book value of the deferred tax asset shall be writtendown. When it is probable that sufficient taxable income will be obtained, the reducedamount shall be reversed.When there is a legal right to settle on a net basis and there is an intention to settle on anet basis or to obtain assets and pay off liabilities simultaneously, the current income taxassets and current income tax liabilities are presented as the net amount after offsetting.On the balance sheet date, the deferred income tax assets and deferred income taxliabilities are presented as the net amount after offsetting when the following conditionsare met at the same time:
? The taxpayer has the legal right to settle the current income tax assets and currentincome tax liabilities on a net basis;? Deferred tax assets and deferred tax liabilities are related to the income tax levied onthe same taxpayer by the same tax collection authority or to different taxpayers, buteach important deferred tax asset and liability will be reversed in the future, thetaxpayers involved intend to settle the current income tax assets and liabilities on anet basis or acquire assets and pay off liabilities at the same time.
28. Leases
Lease refers to a contract in which the lessor transfers the right to use an asset to thelessee for consideration within a certain period of time. On the inception date of thecontract, the Company assesses whether the contract is or contains a lease. A contract is,or contains, a lease if one party to the contract transfers the right to control the use of oneor more identified assets for a period of time in exchange for consideration.
If the contract contains multiple separate leases at the same time, the Company will splitthe contract and conduct accounting treatment for each separate lease separately. If thecontract contains both lease and non-lease parts, the lessee and lessor will separate thelease and non-lease parts.For rental concessions, such as rent reductions, deferred payments, etc., directly caused bythe COVID-19 Epidemic, the Company adopts a simplified method for all lease options,and does not evaluate whether there is a lease change and lease classification will not bereassessed if the following conditions are met at the same time:
? The lease consideration after the concession is reduced or basically unchanged fromthat before the concession, and the lease consideration can be undiscounted ordiscounted at the discount rate before the concession;? The concession is only for the lease payments payable before 30 June 30 2022. An
increase in the lease payments payable after 30 June 2022 does not affect thefulfillment of this condition, and a decrease in the lease payments payable after 30June 30 2022 does not meet this condition;? After comprehensive consideration of qualitative and quantitative factors, it isdetermined that there is no significant change in other terms and conditions of thelease.
(1) The Company acts as the lessee
1) Right-of-use assets
On the commencement date of the lease term, the Company recognizes right-of-useassets for leases other than short-term leases and low-value asset leases.Right-of-use assets are initially measured at cost. This cost includes:
? The initial measurement amount of the lease liability;
? For the lease payment paid on or before the start date of the lease term, if
there is a lease incentive, the relevant amount of the lease incentive alreadyenjoyed shall be deducted;
? Initial direct costs incurred by the Company;
? The cost expected to be incurred by the Company for dismantling and
removing the leased asset, restoring the site where the leased asset is located,or restoring the leased asset to the state stipulated in the lease terms. However,costs incurred for the production of inventories are not included.The Company subsequently adopts the straight-line method to depreciate the
right-of-use assets. If it can be reasonably determined that the ownership of theleased asset will be obtained when the lease term expires, the Company shallaccrue depreciation within the remaining useful life of the leased asset. Otherwise,the leased asset is depreciated over the shorter period of the lease term or theremaining useful life of the leased assetThe company determines whether the right-of-use asset has been impaired inaccordance with the principles stated in “III. (19) Impairment of Long-term Assets”in this note, and conducts accounting treatment for the identified impairment loss.
2) Lease liability
On the commencement date of the lease term, the Company recognizes leaseliabilities for leases other than short-term leases and low-value asset leases. Thelease liability is initially measured at the present value of the unpaid leasepayments. Lease payments include:
? Fixed payments (including substantive fixed payments), if there is a leaseincentive, deduct the relevant amount of the lease incentive;
? Variable lease payments that depend on an index or rate;
? The amount expected to be paid according to the residual value of the
guarantee provided by the Company;
? The exercise price of the option to purchase, if the Company is reasonablycertain that the option will be exercised;
? Amounts payable for exercising the option to terminate the lease, provided theterm of the lease reflects the exercise of the option to terminate the lease.The Company uses the lease implicit interest rate as the discount rate, but if thelease implicit interest rate cannot be reasonably determined, the Company'sincremental borrowing rate is used as the discount rate.The Company calculates the interest expense of the lease liability in each period ofthe lease period according to the fixed periodic interest rate, and includes it in thecurrent profit and loss or the cost of related assets.Variable lease payments that are not included in the measurement of lease liabilitiesare included in current profit or loss or related asset costs when they actually occur.After the start date of the lease term, if the following circumstances occur, theCompany will remeasure the lease liability and adjust the correspondingright-of-use asset. If the book value of the right-of-use asset has been reduced to
zero, but the lease liability still needs to be further reduced, the difference isincluded in the current profit and loss:
? When the evaluation results of the purchase option, lease renewal option ortermination option change, or the actual exercise of the aforementionedoptions is inconsistent with the original evaluation results, the Company willuse the lease payment amount after the change and the revised discount rate tocalculate the present value and remeasure the lease liability;? When the actual fixed payment amount changes, the estimated payableamount of the residual value of the guarantee changes, or the index or ratioused to determine the lease payment changes, the Company recalculates thepresent value based on the changed lease payment amount and the originaldiscount rate and measure the lease liability. However, where changes in leasepayments arise from changes in floating interest rates, a revised discount rateis used to calculate the present value.
3) Short-term leases and leases of low-value assets
The Company chooses not to recognize right-of-use assets and lease liabilities forshort-term leases and low-value asset leases, and includes the relevant leasepayments in the current profit and loss or related asset costs on a straight-line basisduring each period of the lease term. Short-term lease refers to a lease with a leaseterm of no more than 12 months on the commencement date of the lease term anddoes not include the option to purchase. Lease of low-value assets refers to a leasewith a relatively low value when the single leased asset is a brand new asset.Where a company subleases or expects to sublease leased assets, the original leasedoes not belong to low-value asset leases.
4) Lease change
If the lease is changed and the following conditions are met at the same time, theCompany will account for the lease change as a separate lease:
? The lease modification expands the scope of the lease by increasing the userights of one or more leased assets;
? The increased consideration is equal to the individual price of the extendedpart of the leased scope after adjustment according to the conditions of thecontract.
If the lease change is not accounted for as a separate lease, on the effective date ofthe lease change, the Company re-allocates the consideration of the changedcontract, re-determines the lease term, and calculates the cash value based on thechanged lease payment and the revised discount rate to remeasure the leaseliability.If the change of the lease results in a reduction in the scope of the lease or ashortening of the lease term, the Company shall reduce the book value of theright-of-use asset accordingly, and include the relevant gains or losses related to thepartial or complete termination of the lease in the current profit and loss. If otherlease changes lead to the remeasurement of lease liabilities, the Company shalladjust the book value of the right-of-use asset accordingly.
5) Rent concessions related to COVID-19 epidemic
For those who adopt the simplified method of rent reduction related to theCOVID-19 epidemic, the Company will not evaluate whether there is a leasechange, and continue to calculate the interest expense of the lease liability at thesame discount rate as before the reduction and include it in the current profit andloss. The right-of-use asset is depreciated in the same way as before. In the event ofrent reduction or exemption, the Company will use the reduced or exempt rent asthe variable lease payment, and when the original rent payment obligation isterminated by reaching a reduction agreement, the discounted amount at theundiscounted or pre-reduction discount rate will be used to offset the cost of therelevant assets or expenses, and adjust the lease liabilities accordingly; if the rentpayment is deferred, the Company will offset the lease liabilities recognized in theprevious period when the actual payment is made.For short-term leases and leases of low-value assets, the Company will continue toinclude the original contract rent in the cost or expense of the relevant assets in thesame way as before the reduction. In case of rent reduction or exemption, theCompany will use the reduced rent as the variable lease payment, and offset thecost or expenses of related assets during the reduction or exemption period. Thepayables confirmed in the previous period are deducted when the actual payment ismade.
(2) The Company acts as the lessor
On the commencement date of the lease, the Company classifies leases into financeleases and operating leases. Finance lease refers to a lease that substantiallytransfers almost all the risks and rewards related to the ownership of the leasedasset, regardless of whether the ownership is ultimately transferred. Operatingleases refer to leases other than finance leases. When the Company acts as thelessor of the sublease, it classifies the sublease based on the right-of-use assetsarising from the original lease.
1) Accounting for operating lease
The lease receipts from operating leases are recognized as rental income on astraight-line basis during each period of the lease term. The Company capitalizesthe initial direct expenses related to operating leases, and amortizes them in thecurrent profit and loss on the same basis as the recognition of rental income duringthe lease period. Variable lease payments not included in lease receipts are includedin current profit or loss when actually incurred. If the operating lease is changed,the Company will take it as a new lease for accounting treatment from the effectivedate of the change, and the pre-receipt or receivable lease receipts related to thelease before the change will be regarded as the receipts of the new lease.
2) Accounting treatment of finance lease
On the commencement date of the lease, the Company recognizes the finance leasereceivable for the finance lease and derecognizes the finance lease assets. When theCompany initially measures the receivable finance lease, it takes the net leaseinvestment as the entry value of the finance lease receivable. The net leaseinvestment is the sum of the unguaranteed residual value and the present value ofthe unreceived lease receipts at the commencement date of the lease perioddiscounted at the interest rate implicit in the lease.The Company calculates and recognizes the interest income in each period of thelease term according to the fixed periodic interest rate. The derecognition andimpairment of finance lease receivables shall be accounted for in accordance with“III.10 Financial Instruments” in this note.Variable lease payments that are not included in the measurement of net leaseinvestment are included in current profit or loss when they actually occur.If the financial lease is changed and meets the following conditions at the same
time, the Company shall treat the change as a separate lease for accountingtreatment:
? The change expands the scope of the lease by adding the right to use one or
more of the leased assets;? The increased consideration is equal to the individual price of the expandedpart of the leased scope after adjustment according to the conditions of thecontract.If the modification of the financial lease is not accounted for as a separate lease, theCompany handles the modified lease according to the following circumstances:
? If the change takes effect on the lease commencement date, the lease will be
classified as an operating lease, and the Company will account for it as a new
lease from the lease change effective date, and the lease investment net
amount before the lease change becomes effective as the lease the book value
of the asset;? If the change takes effect on the lease commencement date, the lease will be
classified as a finance lease, and the Company will conduct accounting
treatment in accordance with the policy on modifying or renegotiating the
contract in “III.10 Financial Instruments” in this note.
3) Rent concessions related to COVID-19 Epidemic
? For operating leases that adopt the simplified method of rent reduction related
to the COVID-19 Epidemic, the Company will continue to recognize the
original contract rent as lease income in accordance with the method before
the reduction. The amount of payment shall be offset against the rental income
during the reduction or exemption period; if the rent is deferred, the Company
shall recognize the rent payable as an account receivable during the original
collection period, and offset the previously confirmed account receivable
when it is actually received.? For financial leases that adopt the simplified method of rental concessions
related to the COVID-19 epidemic, the Company continues to calculate
interest at the same discount rate as before the concession and recognize it as
lease income. In the event of rent reduction or exemption, the Company will
use the reduced or exempt rent as the variable lease payment, and when the
right to collect the original rent is waived after reaching a concession
agreement, the discounted amount at the undiscounted or pre-reductiondiscount rate will offset the originally recognized lease income, the part that isnot enough to be offset is included in investment income, and the financiallease receivables are adjusted accordingly; if the rent is deferred, theCompany will offset the financial lease receivables confirmed in the previousperiod when it is actually received.
(3) Sale and leaseback transactions
The Company evaluates and determines whether the asset transfer in the sale andleaseback transaction is a sale in accordance with the principles stated in “III.24Revenue” in this note.
1) As lessee
If the asset transfer in the sale-and-leaseback transaction is a sale, the Company, asthe lessee, measures the right-of-use asset formed by the sale-and-leaseback basedon the part of the book value of the original asset related to the right to useacquired by the leaseback and recognize the relevant gain or loss only for the rightsassigned to the lessor; If the asset transfer in the sale-and-leaseback transaction isnot a sale, the Company, as the lessee, shall continue to recognize the transferredasset and at the same time recognize a financial liability equal to the transferincome. For the accounting treatment of financial liabilities, please refer to “III.10Financial Instruments" in this note.
2) As lessor
If the asset transfer in the sale-and-leaseback transaction is a sale, the Company, asthe lessor, conducts accounting treatment for the asset purchase, and conductsaccounting treatment for the asset lease in accordance with the policy of "2. TheCompany as the lessor; If the transfer of assets in a sale-and-leaseback transactionis not a sale, the Company, as the lessor, does not recognize the transferred asset,but recognizes a financial asset equal to the transfer income. For the accountingtreatment of financial assets, please refer to “III.10 Financial Instruments” in thisnote.
29. Discontinued Operations
Discontinued operation is a separately distinguishable component that meets one of thefollowing conditions, and the component has been disposed of by the company or
classified as held for sale by the company:
(1) The component represents an independent principal business or a separate principalarea of operation;
(2) The component is a part of an associated plan to dispose of an independent mainbusiness or a separate main business area;
(3) This component is a subsidiary acquired exclusively for resale.
Profit and loss from continuing operations and profit and loss from discontinuedoperations are presented separately in the income statement. Operating profit and losssuch as impairment loss and reversal amount of discontinued operation and disposal profitand loss are presented as discontinued operation profit and loss. For the discontinuedoperations reported in the current period, the Company re-reported the informationoriginally presented as continuing operating profit and loss in the current financialstatements as the discontinued operating profit and loss of the comparable accountingperiod.
30. Major Accounting Estimates and Judgments
When preparing financial statements, the Company's management needs to use estimatesand assumptions, which will affect the application of accounting policies and the amountof assets, liabilities, income and expenses. Actual results may differ from these estimates.The management of the Company conducts continuous evaluation on the key assumptionsand uncertain factors involved in the estimation, and the impact of changes in accountingestimates is confirmed in the current and future periods of the changes.The main uncertain factors of the estimated amount are as follows:
(1) Measurement of expected credit losses
The Company calculates expected credit losses through default risk exposure andexpected credit loss rate, and determines expected credit loss rate based on defaultprobability and default loss rate. When determining the expected credit loss rate, theCompany uses data such as internal historical credit loss experience, and adjusts historicaldata in combination with current conditions and forward-looking information. Inconsidering forward-looking information, the Company uses indicators including the riskof economic downturn, the expected increase in the unemployment rate, changes in theexternal market environment, technological environment and customer conditions, etc.The Company regularly monitors and reviews assumptions related to the calculation ofexpected credit losses.
(2) Provision for price of inventory decline
As mentioned in “III. (11) Inventories” in this note, the Company regularly estimates thenet realizable value of the inventory, and recognizes the loss for price of inventory declinefor the difference between the inventory cost and the net realizable value. Whenestimating the net realizable value of inventories, the Company considers the purpose ofholding the inventories and uses the available information as the basis for the estimation,including the market price of the inventories and the Company's past operating costs. Theactual selling price, cost of completion, sales expenses and taxes of inventories maychange with changes in market sales conditions, production technology or actual use ofinventories, so the amount of provision for price of inventory decline may change due tothe above reasons. The adjustment to the provision for price of inventory decline willaffect the profit and loss of the period when the estimate is changed.
(3) Impairment of assets other than inventories and financial assets
As described in “III. (19) Impairment of Long-term Assets" in this note, the Companyconducts impairment assessment on assets other than inventories and financial assets onthe balance sheet date to determine whether the recoverable amount of the asset has fallenbelow its book value. Where circumstances indicate that the carrying amount of along-term asset may not be recoverable in full, the asset is considered to be impaired andan impairment loss is recognized accordingly.The recoverable amount is the higher of the net amount of the fair value of the asset (orasset group) minus the disposal costs and the present value of the expected future cashflow of the asset (or asset group). Because the Company cannot reliably obtain the publicmarket price of the asset (or asset group), and cannot reliably and accurately estimate thefair value of the asset. Therefore, the Company regards the present value of estimatedfuture cash flow as the recoverable amount. When estimating the present value of futurecash flows, it is necessary to make major judgments on the output, selling price, relatedoperating costs, and discount rate used in calculating the present value of the asset (orasset group). When estimating the recoverable amount, the Company will use all availablerelevant information, including the prediction of production, selling price and relatedoperating costs based on reasonable and supportable assumptions.
(4) Depreciation and amortization of assets such as fixed assets and intangible assets
As described in “3. (15) Fixed Assets” and “3. (18) Intangible Assets” in this note, theCompany accrues depreciation and amortization within the useful life of assets such asfixed assets and intangible assets after considering their scrap value. The Companyregularly reviews the useful life of the relevant assets to determine the amount ofdepreciation and amortization expense to be included in each reporting period. Theservice life of assets is determined by the Company based on past experience of similarassets and in combination with expected technological changes. The depreciation andamortization expense is adjusted in future periods if there are material changes fromprevious estimates.
(5) Deferred Tax Assets
When it is estimated that sufficient taxable income can be obtained in the future period toutilize unrecovered tax losses and deductible temporary differences, the Company islimited to the amount of taxable income that is likely to be obtained to offset unrecoveredtax losses and deductible temporary differences, and calculates and recognizes therelevant deferred income tax assets on the basis of the applicable income tax rate duringthe period in which the assets are expected to be recovered .The Company needs to use judgment to estimate the time and amount of taxable incometo be obtained in the future, and make reasonable estimates and judgments on the futureapplicable income tax rate according to the current tax policy and other relevant policies.To determine the amount of deferred income tax assets that should be recognized. If thereis a difference between the time and amount of profit actually generated in the future orthe actual applicable income tax rate and the management's estimate, the difference willhave an impact on the amount of deferred tax assets.
31. Changes in Important Accounting Policies and Accounting Estimates
(1) Changes in important accounting policies
None.
(2) Changes in important accounting estimates
None.
IV. Taxation
1. Major Types of Taxes and Tax Rates
Tax type | Tax basis | Tax rate (%) |
Value-added Tax (‘VAT’) | Output VATs are calculated based on the sales of goods and taxable service income calculated according to the Tax Law. After deducting the input VATs that are allowed to be deducted in the current period, the difference is the VAT payable. | 6、9、13 |
City maintenance and construction tax | Based on actual payment of VAT and consumption tax | 7、5 |
Corporate income tax | Based on taxable profits | 25 |
2. Tax Incentives
None.
V. Notes to Consolidated Financial Statements Items
1. Monetary Funds
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Cash on hand | ||
Digital currency | ||
Bank deposits | 3,135,535,935.14 | 1,296,662,683.20 |
Other monetary fund | 521,023,596.93 | 164,482,958.67 |
Total | 2,408,325,571.25 | 1,074,918,531.75 |
Including: Total overseas deposits | ||
Funds deposited in finance company | 2,244,735,874.76 | 1,074,918,531.75 |
Among them, there are restrictions on use due to mortgage, pledge or freezing,restrictions on withdrawals due to centralized management of funds, and details ofmonetary funds placed overseas and restricted on repatriation of funds are as follows:
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Margin for bank acceptance bill | 421,023,596.93 | 163,297,958.67 |
Margin for letter of credit | 100,000,000.00 | |
Margin for performance |
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Time deposit or notice deposit for guarantee | ||
Money placed offshore with restrictions on repatriation of funds | ||
Restricted funds due to centralized management of funds | 1,185,000.00 | |
Total | 521,023,596.93 | 164,482,958.67 |
2. Notes Receivable
(1) Notes receivable presented by category
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Banker's acceptance bill | 20,000.00 | 139,442,122.88 |
Acceptance bill of finance company | 87,371,995.82 | 290,265,051.82 |
Commercial acceptance bill | ||
Total | 87,391,995.82 | 429,707,174.70 |
(2) Notes receivable pledged by the company at the end of the period
Items | Amount pledged at the end of the period |
Banker's acceptance bill | 255,189,626.40 |
Acceptance bill of finance company | |
Commercial acceptance bill | |
Total | 255,189,626.40 |
(3) Bills receivable that have been endorsed or discounted by the company at the
end of the period and have not yet expired on the balance sheet date
Items | Amount derecognized at the end of the period | Amount not derecognized at the end of the period |
Bank acceptance bill | 5,623,759,903.70 | |
Acceptance bill of finance company | 82,950,793.43 | |
Commercial acceptance bill | ||
Total | 5,623,759,903.70 | 82,950,793.43 |
3. Accounts Receivable
(1) Disclosure by aging of accounts receivable
Aging | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Within 1 year | 920,913,586.81 | 892,035,646.81 |
1 to 2 years | 865,863.89 | 14,717,227.92 |
2 to 3 years | 7,249,049.16 | 5,931,757.76 |
More than 3 years | 437,107,384.70 | 456,148,481.98 |
Subtoal | 1,366,135,884.56 | 1,368,833,114.47 |
Less: Provision for bad debts | 451,728,222.39 | 471,602,218.41 |
Total | 914,407,662.17 | 897,230,896.06 |
(2) Classified by bad debt provision method
Types | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Percentage (%) | Amount | Bad debts ratio (%) | Amount | Percentage (%) | Amount | Bad debts ratio (%) | |||
Bad debt provisions made on an individual basis | 367,153,964.12 | 26.88 | 367,153,964.12 | 100.00 | 353,419,325.80 | 25.82 | 353,419,325.80 | 100.00 | ||
Bad debt provisions made on the combination of credit risk characteristics | 998,981,920.44 | 73.12 | 84,574,258.27 | 8.47 | 914,407,662.17 | 1,015,413,788.67 | 74.18 | 118,182,892.61 | 11.64 | 897,230,896.06 |
Including: | ||||||||||
Aging portfolio | 998,981,920.44 | 73.12 | 84,574,258.27 | 8.47 | 914,407,662.17 | 1,015,413,788.67 | 74.18 | 118,182,892.61 | 11.64 | 897,230,896.06 |
Total | 1,366,135,884.56 | 100.00 | 451,728,222.39 | 914,407,662.17 | 1,368,833,114.47 | 100.00 | 471,602,218.41 | 897,230,896.06 |
Bad debt provisions made on an individual basis:
Name | Balance as at 30 June 2023 | |||
Book balance | Bad debt provision | Bad debts ratio (%) | Reason for provision | |
Benxi Nanfenxinhe Metallurgical Charge Co., Ltd. | 48,196,244.68 | 48,196,244.68 | 100.00 | Discontinued, no return expected |
Benxi Iron and Steel (Group) Third Construction Engineering Co., Ltd. | 10,613,567.47 | 10,613,567.47 | 100.00 | Bankruptcy and reorganization of the enterprise is expected to be irrecoverable |
Benxi Iron and Steel (Group) First Construction Engineering Co., Ltd. | 3,121,070.85 | 3,121,070.85 | 100.00 | Bankruptcy and reorganization of the enterprise is expected to be irrecoverable |
Huachen Auto Group Holdings Limited | 305,223,081.12 | 305,223,081.12 | 100.00 | Bankruptcy and reorganization of the enterprise is expected to be irrecoverable |
Total | 367,153,964.12 | 367,153,964.12 |
Bad debt provisions made on the combination:
Name | Balance as at 30 June 2023 | ||
Accounts receivable | Bad debt provision | Bad debts ratio (%) | |
Within 1 year | 920,913,586.81 | 9,209,135.87 | 1.00 |
1 to 2 years | 865,863.89 | 86,586.39 | 10.00 |
2 to 3 years | 2,404,917.15 | 480,983.42 | 20.00 |
More than 3 years | 74,797,552.59 | 74,797,552.59 | 100.00 |
Total | 998,981,920.44 | 84,574,258.27 |
(3) The provision for bad debts accrued, reversed or recovered in the current
period
Type | Balance as at 31 December 2022 | Amount changed during the period | Balance as at 30 June 2023 | |||
Accrued | Reversed or recovered | Transferred or written-off | Other changes | |||
Provision for bad debts of accounts receivable | 471,602,218.41 | 18,426,234.94 | 1,447,761.08 | 451,728,222.39 | ||
Total | 471,602,218.41 | 18,426,234.94 | 1,447,761.08 | 451,728,222.39 |
(4) Actual written-off of accounts receivable in the current period
Items | Amount of written-off |
Actual written-off of accounts receivable | 1,447,761.08 |
Important write-off of accounts receivable:
Name of debtor | Nature of accounts receivable | Amount of written-off | Reason of written-off | Written-off procedures performed | Whether the payment is generated by a related party transaction |
Jining Forging Center | Sales of products | 461,229.33 | Deregistered | General Manager Office Meeting | No |
Xuzhou Jinshanqiao Development Zone Yongan Metal Material Co., Ltd. | Sales of products | 200,265.48 | Revoked | General Manager Office Meeting | No |
Shanghai Benxi Iron and Steel Industry and Trade Company | Sales of products | 193,625.29 | Deregistered | General Manager Office Meeting | No |
China Ordnance Materials Northeast Company Fushun Technology and Trade Center | Sales of products | 155,616.74 | Revoked | General Manager Office Meeting | No |
Tonghua Grain and Oil Machinery Factory | Sales of products | 141,139.39 | Deregistered | General Manager Office | No |
Name of debtor | Nature of accounts receivable | Amount of written-off | Reason of written-off | Written-off procedures performed | Whether the payment is generated by a related party transaction |
Meeting | |||||
Benxi Steel Yantai Marketing Co., Ltd. | Sales of products | 138,378.96 | Deregistered | General Manager Office Meeting | No |
Shandong Zhucheng Industrial Supply and Marketing Corporation | Sales of products | 87,085.43 | Revoked | General Manager Office Meeting | No |
Tieling Jinlong Petroleum Pipeline Machinery Product Distribution Office | Sales of products | 24,608.99 | Deregistered | General Manager Office Meeting | No |
Shenzhen Zhongtianda Materials Industry and Trade Co., Ltd. | Sales of products | 20,441.96 | Deregistered | General Manager Office Meeting | No |
Shunde Xinqiangsheng Mold Co., Ltd. | Sales of products | 12,635.20 | Deregistered | General Manager Office Meeting | No |
Benxi Steel Material Distribution Office | Sales of products | 7,167.87 | Revoked | General Manager Office Meeting | No |
Guangdong Zhaoqing Township Enterprise Building Materials and Minerals Company | Sales of products | 5,566.44 | Deregistered | General Manager Office Meeting | No |
Total | 1,447,761.08 |
(5) The top five units with the ending balance of accounts receivable collected by
the debtor
Name of debtor | Balance as at 30 June 2023 | ||
Book balance | % of the total closing balance of accounts receivable | Bad debt provision | |
The first | 640,621,130.96 | 46.89 | 6,406,211.31 |
The second | 305,223,081.12 | 22.34 | 305,223,081.12 |
The third | 76,326,718.36 | 5.59 | 763,267.18 |
The fourth | 50,834,840.47 | 3.72 | 508,348.40 |
The fifth | 48,196,244.68 | 3.53 | 48,196,244.68 |
Total | 1,121,202,015.59 | 82.07 | 361,097,152.69 |
4. Accounts Receivable Financing
Details of accounts receivable financing
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Notes receivable | 953,938,535.80 | 137,591,996.02 |
Accounts receivable | ||
Total | 953,938,535.80 | 137,591,996.02 |
5. Prepayments
(1) Disclosure by aging of prepayments
Aging | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||
Amount | Percentage (%) | Amount | Percentage (%) | |
Within 1 year | 932,168,955.31 | 99.42 | 1,235,907,044.32 | 99.10 |
1 to 2 years | 5,128,693.51 | 0.55 | 8,892,828.10 | 0.71 |
2 to 3 years | 20,696.05 | 2,301,638.78 | 0.18 | |
More than 3 years | 306,237.13 | 0.03 | 76,237.13 | 0.01 |
Total | 937,624,582.00 | 100.00 | 1,247,177,748.33 | 100.00 |
As of the end of the reporting period, there were no prepayments with an age ofmore than one year and significant amounts.
(2) The top five units of the ending balance of prepayments collected by the
debtor
Name of debtor | Balance as at 30 June 2023 | % of the total closing balance of prepayments |
The first | 104,332,332.83 | 15.62 |
The second | 103,804,229.89 | 15.54 |
The third | 88,096,459.67 | 13.19 |
The fourth | 80,010,275.85 | 11.98 |
The fifth | 58,014,169.46 | 8.69 |
Total | 434,257,467.70 | 65.02 |
6. Other Receivables
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Interest receivable | ||
Dividends receivable | ||
Other receivables | 98,776,833.29 | 127,198,692.92 |
Total | 98,776,833.29 | 127,198,692.92 |
Other receivables
(1) Disclosure by aging of other receivable
Aging | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Within 1 year | 95,787,862.39 | 85,596,605.22 |
1 to 2 years | 1,920,566.77 | 38,267,869.02 |
2 to 3 years | 2,772,924.29 | 3,519,908.21 |
More than 3 years | 97,497,769.42 | 63,947,507.23 |
Subtoal | 197,979,122.87 | 191,331,889.68 |
Less: Provision for bad debts | 99,202,289.58 | 64,133,196.76 |
Total | 98,776,833.29 | 127,198,692.92 |
(2) Classified by bad debt provision method
Types | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Percentage (%) | Amount | Bad debts ratio (%) | Amount | Percentage (%) | Amount | Bad debts ratio (%) | |||
Bad debt provisions made on an individual basis | 49,333,315.37 | 24.92 | 49,333,315.37 | 100.00 | 15,031,598.34 | 7.86 | 15,031,598.34 | 100.00 | ||
Bad debt provisions made on the combination of credit risk characteristics | 148,645,807.50 | 75.08 | 49,868,974.21 | 33.55 | 98,776,833.29 | 176,300,291.34 | 92.14 | 49,101,598.42 | 27.85 | 127,198,692.92 |
Including: | ||||||||||
Aging portfolio | 148,645,807.50 | 75.08 | 49,868,974.21 | 33.55 | 98,776,833.29 | 141,980,250.55 | 49,101,598.42 | 92,878,652.13 | ||
Risk free portfolio | 34,320,040.79 | 34,320,040.79 | ||||||||
Total | 197,979,122.87 | 100.00 | 99,202,289.58 | 98,776,833.29 | 191,331,889.68 | 100.00 | 64,133,196.76 | 127,198,692.92 |
Bad debt provisions made on an individual basis:
Name of debtor | Balance as at 30 June 2023 | |||
Book balance | Bad debt provision | Bad debts ratio (%) | Provision reason | |
Unrecoverable taxes (VAT, properrty tax, transfer-out input tax) | 13,017,578.30 | 13,017,578.30 | 100.00 | Cannot be recovered |
Others | 20,518,449.85 | 20,518,449.85 | 100.00 | Cannot be recovered |
Benxi City Xihu District Renewable Resources Utilization Corporation | 2,951,245.44 | 2,951,245.44 | 100.00 | Cannot be recovered |
Liaoning Hengyi Financial Leasing Co., Ltd. | 2,357,285.76 | 2,357,285.76 | 100.00 | Cannot be recovered |
Dalian China Metallurgical Import & Export Dalian Company | 2,000,000.00 | 2,000,000.00 | 100.00 | Cannot be recovered |
Financial Services Bureau Daily Loan Sinking Fund | 1,740,000.00 | 1,740,000.00 | 100.00 | Cannot be recovered |
Personal loan | 1,370,308.33 | 1,370,308.33 | 100.00 | Cannot be recovered |
Benxi Peace Material Supply and Marketing Company | 1,097,678.20 | 1,097,678.20 | 100.00 | Cannot be recovered |
Xiuyan Manchu Autonomous County Materials Recycling Co., Ltd. | 1,018,878.71 | 1,018,878.71 | 100.00 | Cannot be recovered |
Inner Mongolia Haotong Energy Co., Ltd. | 970,860.82 | 970,860.82 | 100.00 | Cannot be recovered |
Benxi Economic Development Zone Fuben Industry and Trade Industrial Company | 730,362.94 | 730,362.94 | 100.00 | Cannot be recovered |
Benxi City Pingshan Minzheng Steel Factory | 672,803.75 | 672,803.75 | 100.00 | Cannot be recovered |
Qigang in Heilongjiang Province | 627,080.88 | 627,080.88 | 100.00 | Cannot be recovered |
Benxi Iron and Steel (Group) Third Construction Engineering Co., Ltd. | 260,782.39 | 260,782.39 | 100.00 | Bankruptcy and reorganization of enterprises, expected to be irrecoverable |
Total | 49,333,315.37 | 49,333,315.37 |
Bad debt provisions made on the combination:
Types | Balance as at 30 June 2023 | ||
Book balance of other receivables | Bad debt provision | Bad debts ratio (%) | |
Within 1 year | 95,787,862.39 | 957,878.62 | 1.00 |
1 to 2 years | 1,920,566.77 | 192,056.68 | 10.00 |
2 to 3 years | 2,772,924.29 | 554,584.86 | 20.00 |
More than 3 years | 48,164,454.05 | 48,164,454.05 | 100.00 |
Total | 148,645,807.50 | 49,868,974.21 |
(3) Situation of bad debt provisions
Bad debt provision | The first stage | The second stage | The third stage | Total |
Expected credit losses over the next 12 months | Expected credit losses over the entire duration (no credit impairment occurred) | Expected credit loss over the entire duration (credit impairment has occurred) | ||
Balance as at 31 December 2022 | 850,661.71 | 1,353,672.38 | 61,928,862.67 | 64,133,196.76 |
Balance as at 31 December 2022 is in the current period | ||||
-- Transfer to the second stage | -199,513.15 | 199,513.15 | ||
-- Transfer to the third stage | -931,818.80 | 931,818.80 | ||
-- Transfer back to the second stage | ||||
-- Transfer back to the first stage | ||||
Provision for this period | 306,730.06 | 125,274.81 | 35,445,003.54 | 35,877,008.41 |
Transfer back in this period | ||||
Transfer and derecognition in this period | ||||
Derecognition in this period | 807,915.59 | 807,915.59 | ||
Other changes | ||||
Balance as at 30 June 2023 | 957,878.62 | 746,641.53 | 97,497,769.42 | 99,202,289.58 |
Changes in the book balance of other receivables:
Book balance | The first stage | The second stage | The third stage | Total |
Expected credit losses over the next 12 months | Expected credit losses over the entire duration (no credit impairment occurred) | Expected credit loss over the entire duration (credit impairment has occurred) | ||
Balance as at 31 December 2022 | 85,596,605.22 | 43,806,421.79 | 61,928,862.67 | 191,331,889.68 |
Balance as at 31 December 2022 is in the current period | ||||
-- Transfer to the second stage | -11,943,705.87 | 11,943,705.87 | ||
-- Transfer to the third stage | -4,778,004.33 | 4,778,004.33 | ||
-- Transfer back to the second stage | ||||
-- Transfer back to the first stage | ||||
Additions in this period | 30,673,006.36 | 251,994.13 | 36,755,531.19 | 67,680,531.68 |
Derecognition in this period | 530,434.22 | 46,530,626.40 | 3,970,088.74 | 51,031,149.36 |
Other changes | 807,915.59 | 807,915.59 | ||
Balance as at 30 June 2023 | 103,795,471.49 | 4,693,491.06 | 98,684,393.86 | 207,173,356.41 |
(4) The provision for bad debts accrued, reversed or recovered in the current period
Type | Balance as at 31 December 2022 | Amount changed during the period | Balance as at 30 June 2023 | |||
Accrued | Reversed or recovered | Transferred or written-off | Other changes | |||
Provision for bad debts of other receivables | 64,133,196.76 | 35,877,008.41 | 807,915.59 | 99,202,289.58 | ||
Total | 64,133,196.76 | 35,877,008.41 | 807,915.59 | 99,202,289.58 |
(5) Other receivables actually written off in the current period
Item | Amount written off |
Other receivables actually written off | 807,915.59 |
Important write-off of other receivables:
Name of debtor | Nature of other receivables | Amount of written-off | Reason of written-off | Written-off procedures performed | Whether the payment is generated by a related party transaction |
Beijing Bensteel Material Sales Center | Sales of products | 807,915.59 | Revoked | General Manager Office Meeting | No |
Total | 807,915.59 |
(6) Classification by nature of payment
Nature | Book balance as at 30 June 2023 | Book balance as at 31 December 2022 |
Temporary payment | 164,622,765.92 | 181,771,075.61 |
Others | 33,356,356.95 | 9,560,814.07 |
Total | 197,979,122.87 | 191,331,889.68 |
(7) The top five units with the ending balance of other receivables collected by thedebtor
Name of debtor | Nature of other receivables | Balance as at 30 June 2023 | Aging | % of the total closing balance of other receivables | Provision for bad debts as at 30 June 2023 |
The first | Temporary payment | 14,431,832.25 | Within 1 year | 7.29 | 144,318.32 |
The second | Temporary payment | 12,212,650.80 | Within 1 year | 6.17 | 122,126.51 |
The third | Temporary payment | 4,532,904.80 | Within 1 year | 2.29 | 45,329.05 |
The fourth | Temporary payment | 4,609,686.93 | Within 1 year | 2.33 | 46,096.87 |
The fifth | Temporary payment | 4,399,240.94 | Within 1 year | 2.22 | 43,992.41 |
Total | 40,186,315.72 | 20.30 | 401,863.16 |
7. Inventories
(1) Inventory classification
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||||
Book balance | Provision for price of inventory decline/provision for impairment of contract performance cost | Book value | Book balance | Provision for price of inventory decline/provision for impairment of contract performance cost | Book value | |
Raw materials and main materials | 4,361,671,293.63 | 26,986,533.69 | 4,334,684,759.94 | 4,215,260,584.25 | 24,954,852.46 | 4,190,305,731.79 |
Work in progress and self-made semi-finished products | 1,776,598,180.55 | 16,239,572.86 | 1,760,358,607.69 | 2,070,182,298.44 | 18,271,254.09 | 2,051,911,044.35 |
Stock goods | 1,606,888,537.54 | 99,662,225.82 | 1,507,226,311.72 | 2,236,715,664.20 | 15,203,965.16 | 2,221,511,699.04 |
Total | 7,745,158,011.72 | 142,888,332.37 | 7,602,269,679.35 | 8,522,158,546.89 | 58,430,071.71 | 8,463,728,475.18 |
(2) Provision for price of inventory decline and provision for impairment of contract performance cost
Items | Balance as at 31 December 2022 | Additions in this period | Reductions in this period | Balance as at 30 June 2023 | ||
Accrued | Others | Transferred back or written-off | Others | |||
Raw materials and main materials | 24,954,852.46 | 24,954,852.46 | ||||
Work in progress and self-made semi-finished products | 18,271,254.09 | 9,135,627.05 | 18,271,254.09 | 9,135,627.05 | ||
Stock goods | 15,203,965.16 | 108,797,852.86 | 15,203,965.16 | 108,797,852.86 | ||
Total | 58,430,071.71 | 117,933,479.91 | 33,475,219.25 | 142,888,332.37 |
8. Other Current Assets
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Prepaid tax | 408,957.27 | 166,991,140.45 |
VAT input tax | 38,659,283.83 | 228,449,995.81 |
Total | 39,068,241.10 | 395,441,136.26 |
9. Long-term Equity Investments
Investees | Balance as at 31 December 2022 | Changes in current period | Balance as at 30 June 2023 | Balance of provision for impairment as at 30 June 2023 | |||||||
Additional investment | Reduced investment | Investment Gains and losses recognized under the equity method | Other comprehensive income adjustment | Other equity changes | Declaration of cash dividends or profit | Provision for impairment | Others | ||||
1.Associates | |||||||||||
Bensteel Baojin (Shenyang) Automotive New Material Technology Co., Ltd. | 47,996,314.61 | -439,659.59 | 47,556,655.02 | ||||||||
Zhejiang Jingrui Steel Processing Co., Ltd. | 3,034,462.57 | -2,740,000.00 | -294,462.57 | ||||||||
Total | 51,030,777.18 | -2,740,000.00 | -734,122.16 | 47,556,655.02 |
10. Other Equity Instrument Investments
(1) Situation of other equity instrument investments
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Equity of Suzhou Longben Metal Materials Co., Ltd. | 3,998,216.04 | 3,998,216.04 |
Equity of Northeast Special Steel Group Co., Ltd. | 1,016,420,266.27 | 1,016,420,266.27 |
Total | 1,020,418,482.31 | 1,020,418,482.31 |
11. Fixed Assets
(1) Fixed assets and disposal of fixed assets
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Fixed assets | 24,254,087,872.28 | 24,836,556,422.90 |
Disposal of fixed assets | 873,197.46 | |
Total | 24,254,961,069.74 | 24,836,556,422.90 |
(2) Situation of fixed assets
Items | Property and plant | Mechanical equipment | Transport equipment and other equipment | Total |
1.Original book value | ||||
(1) Balance as at 31 December 2022 | 12,443,526,672.94 | 51,336,275,140.55 | 598,601,340.47 | 64,378,403,153.96 |
(2) Additions in this period | 562,119,788.26 | 588,245,439.05 | 890,384.03 | 1,151,255,611.34 |
—Purchase | 243,362.83 | 243,362.83 | ||
—Construction in progress transferred in | 562,119,788.26 | 588,245,439.05 | 647,021.20 | 1,151,012,248.51 |
—Increase in business mergers | ||||
(3) Reductions in this period | 320,593,768.57 | 783,359,987.04 | 7,217,992.84 | 1,111,171,748.45 |
—Disposal or scrapping | 320,593,768.57 | 783,359,987.04 | 7,217,992.84 | 1,111,171,748.45 |
(4) Balance as at 30 June 2023 | 12,685,052,692.63 | 51,141,160,592.56 | 592,273,731.66 | 64,418,487,016.85 |
2.Accumulated depreciation | ||||
(1) Balance as at 31 December 2022 | 6,322,977,252.32 | 32,708,591,476.02 | 416,799,906.76 | 39,448,368,635.10 |
(2) Additions in this period | 313,255,445.84 | 899,386,391.18 | 16,612,386.86 | 1,229,254,223.88 |
—Accrued | 313,255,445.84 | 899,386,391.18 | 16,612,386.86 | 1,229,254,223.88 |
(3) Reductions in this period | 83,842,247.55 | 515,897,099.77 | 5,846,606.81 | 605,585,954.13 |
—Disposal or scrapping | 83,842,247.55 | 515,897,099.77 | 5,846,606.81 | 605,585,954.13 |
Items | Property and plant | Mechanical equipment | Transport equipment and other equipment | Total |
(4) Balance as at 30 June 2023 | 6,552,390,450.61 | 33,092,080,767.43 | 427,565,686.81 | 40,072,036,904.85 |
3.Provision for impairment | ||||
(1) Balance as at 31 December 2022 | 84,098,414.32 | 9,379,681.64 | 93,478,095.96 | |
(2) Additions in this period | ||||
—Accrued | ||||
(3) Reductions in this period | 849,152.24 | 266,704.00 | 1,115,856.24 | |
—Disposal or scrapping | 849,152.24 | 266,704.00 | 1,115,856.24 | |
(4) Balance as at 30 June 2023 | 83,249,262.08 | 9,112,977.64 | 92,362,239.72 | |
4.Carrying value | ||||
(1) Carrying value as at 30 June 2023 | 6,049,412,979.94 | 18,039,966,847.49 | 164,708,044.85 | 24,254,087,872.28 |
(2) Carrying value as at 31 December 2022 | 6,036,451,006.30 | 18,618,303,982.89 | 181,801,433.71 | 24,836,556,422.90 |
(3) Temporarily idle fixed assets
Items | Original book value | Accumulated depreciation | Provision for impairment | Book value | Notes |
Property and plant | 219,866,137.05 | 136,754,246.14 | 83,111,890.91 | ||
Mechanical equipment | 81,371,079.50 | 74,206,339.46 | 5,656,705.72 | 1,508,034.32 | |
Total | 301,237,216.55 | 210,960,585.60 | 88,768,596.63 | 1,508,034.32 |
(4) Fixed assets leased out through operating leases
Items | Property and plant | Total |
1.Original book value | ||
(1) Balance as at 31 December 2022 | 1,239,002.14 | 1,239,002.14 |
(2) Additions in this period | ||
—Purchase | ||
—Construction in progress transferred in | ||
—Increase in business mergers | ||
(3) Reductions in this period | ||
—Disposal or scrapping | ||
—Convert to own use | ||
(4) Balance as at 30 June 2023 | 1,239,002.14 | 1,239,002.14 |
2.Accumulated depreciation | ||
(1) Balance as at 31 December 2022 | ||
(2) Additions in this period | ||
—Accrued | ||
(3) Reductions in this period | ||
—Disposal or scrapping | ||
(4) Balance as at 30 June 2023 | ||
3.Provision for impairment | ||
(1) Balance as at 31 December 2022 | ||
(2) Additions in this period | ||
—Accrued |
Items | Property and plant | Total |
(3) Reductions in this period | ||
—Disposal or scrapping | ||
(4) Balance as at 30 June 2023 | ||
4.Carrying value | ||
(1) Carrying value as at 30 June 2023 | 1,239,002.14 | 1,239,002.14 |
(2) Carrying value as at 31 December 2022 | 1,239,002.14 | 1,239,002.14 |
(5) Fixed assets with title certificates not yet completed
Items | Book value | Reasons for not handling the certificate of title |
Property and plant | 1,263,898,352.97 | In progress |
(6) Disposal of fixed assets
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Mechanical equipment | 873,197.46 | |
Total | 873,197.46 |
12. Construction in Progress
(1) Construction in progress and project materials
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Construction in progress | 4,151,149,369.23 | 3,158,195,899.65 |
Project materials | ||
Total | 4,151,149,369.23 | 3,158,195,899.65 |
(2) Situation of construction in progress
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||||
Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Special Steel Electric Furnace Upgrading Project | 1,468,183,183.99 | 1,468,183,183.99 | 1,437,078,751.92 | 1,437,078,751.92 | ||
Special steel rolling mill renovation project | 496,329,489.14 | 496,329,489.14 | 470,182,411.88 | 470,182,411.88 | ||
Environmental protection transformation of sheet metal raw material yard | 370,260,075.28 | 370,260,075.28 | 165,792,014.40 | 165,792,014.40 | ||
A cold rolling transformation project | 212,176,267.19 | 212,176,267.19 | 90,087,329.61 | 90,087,329.61 | ||
566 square meters sintering waste heat utilization project | 92,259,450.24 | 92,259,450.24 | 92,259,450.24 | 92,259,450.24 | ||
Environmental protection and intelligent upgrading of board material yard——Environmental protection renovation project of No. 2 Coal Storage Yard | 90,337,806.17 | 90,337,806.17 | 19,266.06 | 19,266.06 | ||
1780 production line upgrade | 77,088,750.00 | 77,088,750.00 | ||||
The ABC and DEF stockyards of the Plate Ironmaking Plant are closed | 69,735,369.56 | 69,735,369.56 | 150,000.00 | 150,000.00 | ||
Caixi Special Steel Feeding Station of Plate Scrap Steel Plant | 68,245,410.08 | 68,245,410.08 | 51,959,719.57 | 51,959,719.57 | ||
New tertiary dedusting system for 1#2#3#7# converter in steelmaking plant | 67,696,017.28 | 67,696,017.28 | 42,834,455.31 | 42,834,455.31 | ||
Plate company's No. 1 CDQ boiler pressure boost transformation and new No. 34 unit project | 50,522,370.80 | 50,522,370.80 | 20,249,501.21 | 20,249,501.21 | ||
The integrated construction of Anben restructuring information system | 49,170,020.61 | 49,170,020.61 | ||||
Desulfurization Waste Liquid Acid Production Project of Plate Ironmaking Plant | 47,798,252.00 | 47,798,252.00 | 30,000.00 | 30,000.00 | ||
Plate energy centralized control project | 40,945,397.20 | 40,945,397.20 | ||||
The overall improvement of the production and manufacturing management of Benxi Iron and Steel Co., Ltd. | 39,756,485.12 | 39,756,485.12 | 39,756,485.12 | 39,756,485.12 | ||
Benxi Iron and Steel Posco Cold Rolling Quality Improvement Improvement Project | 30,542,546.40 | 30,542,546.40 | 27,093,496.08 | 27,093,496.08 | ||
Flue gas desulfurization and desulphurization project of 4B and 5 furnace groups of Benxi Steel Plate Ironmaking Plant | 30,342,580.00 | 30,342,580.00 | ||||
Cold-rolled high-strength steel project of cold-rolling general plant | 27,466,133.97 | 27,466,133.97 | ||||
Bensteel Plate Ironmaking General Plant Nanfen Pipe Concentrate Outbound Supporting Project | 26,722,444.32 | 26,722,444.32 | ||||
Relocation and transformation of ladle hot repair station in steelmaking plant | 25,712,793.58 | 25,712,793.58 | 9,792,793.58 | 9,792,793.58 | ||
Others | 769,858,526.30 | 769,858,526.30 | 710,910,224.67 | 710,910,224.67 | ||
Total | 4,151,149,369.23 | 4,151,149,369.23 | 3,158,195,899.65 | 3,158,195,899.65 |
(3) The change of major construction in progress
Project name | Budget amount | Balance as at 31 December 2022 | Additions in this period | Transfer to fixed assets in this period | Other decrease in current period | Balance as at 30 June 2023 | Proportion of cumulative project investment to budget (%) | Project progress | Accumulated amount of interest capitalized | Including: capitalized amount of interest in the current period | Current interest capitalization rate (%) | Sources of funds |
Special Steel Electric Furnace Upgrading Project | 1,732,481,000.00 | 1,437,078,751.92 | 31,104,432.07 | 1,468,183,183.99 | 84.74% | 84.74% | 14,566,446.28 | 6,489,004.08 | Fundraising, self-financing | |||
Special steel rolling mill renovation project | 734,730,000.00 | 470,182,411.88 | 26,147,077.26 | 496,329,489.14 | 67.55% | 67.55% | 17,363,637.07 | 4,198,950.69 | Self-financing | |||
Environmental protection transformation of sheet metal raw material yard | 1,286,370,000.00 | 165,792,014.40 | 204,468,060.88 | 370,260,075.28 | 28.78% | 28.78% | 10,710,578.63 | 6,408,379.79 | Self-financing | |||
A cold rolling transformation project | 843,640,000.00 | 90,087,329.61 | 122,088,937.58 | 212,176,267.19 | 25.15% | 25.15% | 10,565,776.04 | 4,688,814.80 | Self-financing | |||
566 square meters sintering waste heat utilization project | 1,247,841,000.00 | 92,259,450.24 | 92,259,450.24 | 7.39% | 7.39% | 68,627,433.26 | ||||||
Environmental protection and intelligent upgrading of board material yard——Environmental protection renovation project of No. 2 Coal Storage Yard | 310,000,000.00 | 19,266.06 | 90,318,540.11 | 90,337,806.17 | 29.14% | 29.14% | Self-financing | |||||
1780 production line upgrade | 193,000,000.00 | 77,088,750.00 | 77,088,750.00 | 39.94% | 39.94% | Self-financing | ||||||
The ABC and DEF stockyards of the Plate Ironmaking Plant are closed | 125,000,000.00 | 150,000.00 | 69,585,369.56 | 69,735,369.56 | 55.79% | 55.79% | Self-financing | |||||
Caixi Special Steel Feeding Station of Plate Scrap Steel Plant | 118,453,701.00 | 51,959,719.57 | 26,633,367.20 | 10,347,676.69 | 68,245,410.08 | 66.35% | 66.35% | Self-financing | ||||
New tertiary dedusting system for 1#2#3#7# converter in steelmaking plant | 111,310,000.00 | 42,834,455.31 | 36,432,354.59 | 11,570,792.62 | 67,696,017.28 | 71.21% | 71.21% | 2,357,404.64 | 1,397,589.10 | Self-financing | ||
Plate company's No. 1 CDQ boiler pressure boost transformation and new No. 34 unit project | 93,270,000.00 | 20,249,501.21 | 30,272,869.59 | 50,522,370.80 | 54.17% | 54.17% | Self-financing | |||||
The integrated construction of Anben restructuring information system | 232,100,000.00 | 49,170,020.61 | 49,170,020.61 | 21.18% | 21.18% | 3,961,087.97 | 2,115,020.61 | Self-financing | ||||
Desulfurization Waste Liquid Acid Production Project of Plate Ironmaking Plant | 99,760,000.00 | 30,000.00 | 47,768,252.00 | 47,798,252.00 | 47.91% | 47.91% | Self-financing | |||||
Plate energy centralized | 119,730,000.00 | 40,945,397.20 | 40,945,397.20 | 34.20% | 34.20% | Self-financing |
Project name | Budget amount | Balance as at 31 December 2022 | Additions in this period | Transfer to fixed assets in this period | Other decrease in current period | Balance as at 30 June 2023 | Proportion of cumulative project investment to budget (%) | Project progress | Accumulated amount of interest capitalized | Including: capitalized amount of interest in the current period | Current interest capitalization rate (%) | Sources of funds |
control project | ||||||||||||
The overall improvement of the production and manufacturing management of Benxi Iron and Steel Co., Ltd. | 56,000,000.00 | 39,756,485.12 | 39,756,485.12 | 70.99% | 70.99% | Self-financing | ||||||
Benxi Iron and Steel Posco Cold Rolling Quality Improvement Improvement Project | 69,820,000.00 | 27,093,496.08 | 3,449,050.32 | 30,542,546.40 | 43.74% | 43.74% | Self-financing | |||||
Flue gas desulfurization and desulphurization project of 4B and 5 furnace groups of Benxi Steel Plate Ironmaking Plant | 120,679,500.00 | 30,342,580.00 | 30,342,580.00 | 25.14% | 25.14% | |||||||
Cold-rolled high-strength steel project of cold-rolling general plant | 6,169,170,000.00 | 27,466,133.97 | 27,466,133.97 | 0.45% | 0.45% | 867,286,087.53 | Self-financing | |||||
Bensteel Plate Ironmaking General Plant Nanfen Pipe Concentrate Outbound Supporting Project | 49,553,200.00 | 26,722,444.32 | 26,722,444.32 | 53.93% | 53.93% | Self-financing | ||||||
Relocation and transformation of ladle hot repair station in steelmaking plant | 31,160,000.00 | 9,792,793.58 | 15,920,000.00 | 25,712,793.58 | 82.52% | 82.52% | Self-financing | |||||
Total | 13,744,068,401.00 | 2,447,285,674.98 | 955,923,637.26 | 21,918,469.31 | 3,381,290,842.93 | 995,438,451.42 | 25,297,759.07 |
13. Right-of-use Assets
Items | Land | Property and plant | Total |
1.Original book value | |||
(1) Balance as at 31 December 2022 | 1,132,274,415.17 | 368,465,367.56 | 1,500,739,782.73 |
(2) Additions in this period | |||
—Newly added lease | |||
—Increase in business mergers | |||
—Revaluation adjustment | |||
(3) Reductions in this period | |||
—Transfer to fixed assets | |||
—Disposal | |||
(4) Balance as at 30 June 2023 | 1,132,274,415.17 | 368,465,367.56 | 1,500,739,782.73 |
2.Accumulated depreciation | |||
(1) Balance as at 31 December 2022 | 79,808,472.44 | 40,940,596.40 | 120,749,068.84 |
(2) Additions in this period | 19,952,118.12 | 10,235,149.14 | 30,187,267.26 |
—Accrued | 19,952,118.12 | 10,235,149.14 | 30,187,267.26 |
(3) Reductions in this period | |||
—Transfer to fixed assets | |||
—Disposal | |||
(4) Balance as at 30 June 2023 | 99,760,590.56 | 51,175,745.54 | 150,936,336.10 |
3.Provision for impairment | |||
(1) Balance as at 31 December 2022 | |||
(2) Additions in this period | |||
—Accrued | |||
(3) Reductions in this period | |||
—Transfer to fixed assets |
Items | Land | Property and plant | Total |
—Disposal | |||
(4) Balance as at 30 June 2023 | |||
4.Carrying value | |||
(1) Carrying value as at 30 June 2023 | 1,032,513,824.61 | 317,289,622.02 | 1,349,803,446.63 |
(2) Carrying value as at 31 December 2022 | 1,052,465,942.73 | 327,524,771.16 | 1,379,990,713.89 |
14. Intangible Assets
(1) Situation of intangible assets
Items | Land use rights | Software and others | Total |
1.Original book value | |||
(1) Balance as at 31 December 2022 | 336,885,314.76 | 267,948.72 | 337,153,263.48 |
(2) Additions in this period | |||
—Purchase | |||
—Internal research and development | |||
—Increase in business mergers | |||
(3) Reductions in this period | |||
—Disposal | |||
—Lapsed and derecognized | |||
(4) Balance as at 30 June 2023 | 336,885,314.76 | 267,948.72 | 337,153,263.48 |
2.Accumulated depreciation | |||
(1) Balance as at 31 December 2022 | 74,208,486.41 | 159,839.66 | 74,368,326.07 |
(2) Additions in this period | 3,025,608.41 | 13,397.46 | 3,039,005.87 |
—Accrued | 3,025,608.41 | 13,397.46 | 3,039,005.87 |
(3) Reductions in this period | |||
—Disposal | |||
—Lapsed and derecognized | |||
(4) Balance as at 30 June 2023 | 77,234,094.82 | 173,237.12 | 77,407,331.94 |
3.Provision for impairment | |||
(1) Balance as at 31 December 2022 | |||
(2) Additions in this period | |||
—Accrued | |||
(3) Reductions in this period | |||
—Disposal | |||
—Lapsed and derecognized | |||
(4) Balance as at 30 June 2023 | |||
4.Carrying value | |||
(1) Carrying value as at 30 June 2023 | 259,651,219.94 | 94,711.60 | 259,745,931.54 |
(2) Carrying value as at 31 December 2022 | 262,676,828.35 | 108,109.06 | 262,784,937.41 |
(2) Situation of land use rights without title certificates
Items | Book value | Reasons for not handling the certificate of title |
Land use rights | 38,743,466.68 | In progress |
Total | 38,743,466.68 |
15. Deferred Tax Assets and Deferred Tax Liabilities
(1) Deferred tax assets not offset
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||
Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
Provision for impairment of assets | 518,167,260.88 | 129,541,815.22 | 396,834,109.83 | 99,208,527.46 |
Unrealized profits from internal transactions | 859,549.28 | 214,887.32 | 80,751,325.52 | 20,187,831.38 |
Changes in fair value of other financial assets included in other comprehensive income | 21,315,582.72 | 5,328,895.68 | 21,315,582.73 | 5,328,895.68 |
Lease liabilities | 1,349,803,446.64 | 337,450,861.66 | 1,379,990,713.88 | 344,997,678.47 |
Others | 51,701,085.40 | 12,925,271.35 | 46,650,523.04 | 11,662,630.76 |
Total | 1,941,846,924.92 | 485,461,731.23 | 1,925,542,255.00 | 481,385,563.75 |
(2) Deferred tax liabilities not offset
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||
Taxable temporary differences | Deferred tax liabilities | Taxable temporary differences | Deferred tax liabilities | |
Right-of-use assets | 1,349,803,446.63 | 337,450,861.66 | 1,379,990,713.89 | 344,997,678.47 |
Changes in fair value of other financial assets included in other comprehensive income | 109,236.04 | 27,309.01 | 109,236.04 | 27,309.01 |
Total | 1,349,912,682.67 | 337,478,170.67 | 1,380,099,949.93 | 345,024,987.48 |
(3) Deferred tax assets or liabilities presented in net amount after offset
Items | 30 June 2023 | 31 December 2022 | ||
Offsetting amount of deferred tax assets and liabilities | Balance of deferred tax assets or liabilities after offset | Offsetting amount of deferred tax assets and liabilities | Balance of deferred tax assets or liabilities after offset | |
Deferred tax assets | 337,450,861.66 | 148,010,869.57 | 344,997,678.47 | 136,387,885.28 |
Deferred tax liabilities | 337,450,861.66 | 27,309.01 | 344,997,678.47 | 27,309.01 |
(4) Details of unrecognized deferred tax assets
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Deductible temporary difference | 305,227,125.75 | 305,224,166.01 |
Deductible loss | 2,599,959,695.35 | 1,349,817,349.12 |
Total | 2,905,186,821.10 | 1,655,041,515.13 |
(5) Deductible losses for unrecognized deferred tax assets will expire in the
following years
Year | Balance as at 30 June 2023 | Balance as at 31 December 2022 | Notes |
Year 2023 | 4,678,743.89 | 6,836,473.11 | |
Year 2024 | 12,164,389.35 | 12,164,389.35 | |
Year 2025 | 8,257,832.98 | 8,257,832.98 | |
Year 2026 | 6,799,314.77 | 6,799,314.77 | |
Year 2027 | 1,315,759,338.91 | 1,315,759,338.91 | |
Year 2028 | 1,252,300,075.45 | ||
Total | 2,599,959,695.35 | 1,349,817,349.12 |
16. Other Non-current Assets
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||||
Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Prepayments for long-term assets | 349,815,196.20 | 349,815,196.20 | 110,065,560.68 | 110,065,560.68 | ||
Total | 349,815,196.20 | 349,815,196.20 | 110,065,560.68 | 110,065,560.68 |
17. Short-term Borrowings
(1) Classification of short-term borrowings
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Credit loan | 300,000,000.00 | |
Discounted undue notes | 20,000.00 | 49,200,000.00 |
Total | 300,020,000.00 | 49,200,000.00 |
(2) Overdue short-term borrowings
None.
18. Notes Payable
Types | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Banker's acceptance bill | 4,929,414,404.12 | 2,242,219,356.03 |
Commercial acceptance bill | 750,527,835.47 | 1,407,117,263.33 |
Domestic letter of credit | 2,040,000,000.00 | 740,000,000.00 |
Total | 7,719,942,239.59 | 4,389,336,619.36 |
At the end of the period, there were no bills payable that were due but not paid.
19. Accounts Payable
(1) Details of accounts payable
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Accounts payable | 3,394,258,784.62 | 2,650,335,777.91 |
Service | 174,409,816.97 | 60,238,703.49 |
Payables for engineering and equipment | 299,798,220.11 | 767,867,762.87 |
Repair costs and others | 224,428,703.69 | 217,978,219.58 |
Total | 4,092,895,525.39 | 3,696,420,463.85 |
(2) Important accounts payable aged over 1 year
Items | Balance as at 30 June 2023 | Reasons for non-payment or carryover |
Company 1 | 9,014,897.80 | Billing conditions have not been met |
Company 2 | 4,193,831.29 | Billing conditions have not been met |
Company 3 | 4,091,809.05 | Billing conditions have not been met |
Company 4 | 3,127,924.07 | Billing conditions have not been met |
Company 5 | 1,342,440.00 | Billing conditions have not been met |
Total | 21,770,902.21 |
20. Contract Liabilities
Details of contract liabilities
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Advances from customers | 3,733,739,770.22 | 3,794,115,592.29 |
Total | 3,733,739,770.22 | 3,794,115,592.29 |
21. Employee Benefits Payable
(1) Employee benefits payable presentation
Items | Balance as at 31 December 2022 | Additions in this period | Reductions in this period | Balance as at 30 June 2023 |
Short-term employee benefits | 10,046,363.27 | 1,101,071,973.76 | 1,098,165,873.06 | 12,952,463.97 |
Post-employment benefits - defined contribution plans | 138,804,290.70 | 138,804,290.70 | ||
Termination benefits | 8,183,513.99 | 8,183,513.99 | ||
Other benefits due within one year | ||||
Total | 10,046,363.27 | 1,248,059,778.45 | 1,245,153,677.75 | 12,952,463.97 |
(2) Short-term employee benefits presentation
Items | Balance as at 31 December 2022 | Additions in this period | Reductions in this period | Balance as at 30 June 2023 |
I. Salaries, bonus, allowances and subsidies | 794,299,383.08 | 794,299,383.08 | ||
II. Staff welfare | 93,936,208.17 | 93,936,208.17 | ||
III. Social insurances | 95,670,156.88 | 95,670,156.88 | ||
Including: Medical insurance and maternity insurance | 73,981,150.79 | 73,981,150.79 | ||
Work-related injury insurance | 21,678,022.69 | 21,678,022.69 | ||
Others | 10,983.40 | 10,983.40 | ||
IV. Housing Fund | 6,622,309.00 | 95,210,946.00 | 95,210,946.00 | 6,622,309.00 |
V. Labor union fees, staff and workers’ education fee | 3,424,054.27 | 21,955,279.63 | 19,049,178.93 | 6,330,154.97 |
VI. Short-term paid absences | ||||
VII. Short-term profit-sharing plan | ||||
Total | 10,046,363.27 | 1,101,071,973.76 | 1,098,165,873.06 | 12,952,463.97 |
(3) Defined contribution plans presentation
Items | Balance as at 31 December 2022 | Additions in this period | Reductions in this period | Balance as at 30 June 2023 |
I. Basic pension | 134,565,282.08 | 134,565,282.08 | ||
II. Unemployment insurance | 4,239,008.62 | 4,239,008.62 | ||
III. Enterprise annuity payment | ||||
Total | 138,804,290.70 | 138,804,290.70 |
22. Taxes and Surcharges Payable
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
VAT | 66,496,383.29 | 5,168,511.13 |
Corporate income tax | 12,274,395.43 | 11,469,020.92 |
Individual income tax | 783,980.67 | 2,546,699.73 |
City maintenance and construction tax | 1,660,244.53 | 175,567.61 |
Property tax | 6,901,254.66 | 3,785,986.96 |
Educational surcharge | 1,220,343.26 | 125,405.40 |
Land use tax | 1,049,336.05 | 1,051,651.99 |
Others | 16,057,391.23 | 20,070,077.04 |
Total | 106,443,329.12 | 44,392,920.78 |
23. Other Payables
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Interest payable | ||
Dividends payable | ||
Other payables | 1,639,486,201.24 | 1,247,722,165.47 |
Total | 1,639,486,201.24 | 1,247,722,165.47 |
Other payablesOther payables by nature
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Deposit | 869,292.00 | 2,303,050.00 |
Margin | 317,146,084.62 | 290,353,044.56 |
Accounts | 1,108,631,647.65 | 941,440,196.32 |
Others | 212,839,176.97 | 13,625,874.59 |
Total | 1,639,486,201.24 | 1,247,722,165.47 |
24. Non-current Liabilities Maturing within One Year
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Long-term borrowings maturing within one year | 1,572,461,117.60 | 2,501,169,854.72 |
Bonds payable maturing within one year | 44,762,324.73 | |
Lease liability maturing within one year | 40,740,341.21 | 40,318,706.98 |
Total | 1,613,201,458.81 | 2,586,250,886.43 |
25. Other Current Liabilities
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Output tax to be transferred | 485,575,516.40 | 493,235,027.03 |
Total | 485,575,516.40 | 493,235,027.03 |
26. Long-term Borrowings
Long-term loans presented by category:
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Guaranteed loans | 360,780,612.70 | |
Credit loans | 959,713,911.60 | 1,366,157,689.60 |
Total | 959,713,911.60 | 1,726,938,302.30 |
27. Bonds Payable
(1) Details of bonds payable
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Convertible bonds | 5,382,304,119.20 | 5,276,502,232.78 |
Total | 5,382,304,119.20 | 5,276,502,232.78 |
(2) Changes in bonds payable (Excluding other financial instruments such as preferred stocks and perpetual bonds classified as financial
liabilities)
Name of bond | Face value | Issue date | Term to maturity | Issuance amount | Balance as at 31 December 2022 | Current issue | Interest accrued at face value | Premium and discount amortization | Repayment this period | Convert to stock this period | Balance as at 30 June 2023 |
Bengang Convertible Bonds (Code of bond: 127018) | 6,800,000,000.00 | 2020/6/29 | 6 years | 6,800,000,000.00 | 5,276,502,232.78 | 42,232,875.75 | 148,044,762.17 | 10,000.00 | 5,382,304,119.20 | ||
Total | 6,800,000,000.00 | 5,276,502,232.78 | 42,232,875.75 | 148,044,762.17 | 10,000.00 | 5,382,304,119.20 |
(3) Description of the conditions and time for conversion of convertible bonds
Approved by Shenzhen Stock Exchange "Shen Zheng Shang [2020] No. 656", theCompany’s RMB 6.80 billion convertible corporate bonds were listed on theShenzhen Stock Exchange on August 4, 2020, and the abbreviation is "BengangConvertible Bonds". The bond code is "127018". The conversion period of theconvertible corporate bonds issued this time is from the first trading day after sixmonths of the issuance of the convertible corporate bonds (July 3, 2020) to thematurity date of the convertible corporate bonds, that is, from January 4, 2021 toJune 28, 2026. The initial conversion price of the convertible bonds is RMB 5.03per share. During the period from January 1, 2021 to December 31, 2021, theCompany's A-share convertible bonds of RMB 1,168,855,400.00 were convertedinto the Company's A-share ordinary shares, and the number of converted shareswas 232,819,847 shares. Of which:
In the first quarter of 2022, Bengang's convertible bonds decreased by RMB67,000.00 (670 bonds) due to share conversion, the number of shares convertedwas 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 RMB13,200.00 (132 bonds) due to share conversion, the number of shares convertedwas 3,029.00 shares, and the conversion price was RMB 3.95 per share;In the third quarter of 2022, Bengang's convertible bonds decreased by RMB9,300.00 (93 bonds) due to share conversion, the number of shares converted was2,352 shares, and the conversion price was RMB 3.95 per share;In the fourth quarter of 2022, Bengang's convertible bonds decreased by RMB3,000.00 (30 bonds) due to share conversion, the number of shares converted was759 shares, and the conversion price was RMB 3.95 per share;In the first quarter of 2023, Bengang's convertible bonds decreased by RMB4,000.00 (40 bonds) due to share conversion, the number of shares converted was1,012 shares, and the conversion price was RMB 3.95 per share;In the second quarter of 2023, Bengang's convertible bonds decreased by RMB6,000.00 (60 bonds) due to share conversion, the number of shares converted was1,518 shares, and the conversion price was RMB 3.95 per share;As at June 30, 2023, the Company's remaining balance of convertible bonds wasRMB 5,631,042,100.00 (56,310,421 bonds).
(4) Notes to other financial instruments classified as financial liabilities
None.
28. Lease Liabilities
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Lease payments | 2,186,301,130.48 | 2,191,946,735.27 |
Unrecognized financing charges | 781,227,266.14 | 767,279,566.11 |
Reclassified to non-current liabilities due within one year | 40,740,341.21 | 40,318,706.98 |
Total | 1,364,333,523.13 | 1,384,348,462.18 |
29. Deferred Income
Items | Balance as at 31 December 2022 | Additions in this period | Reductions in this period | Balance as at 30 June 2023 | Reasons |
Government grant | 42,377,015.51 | 850,000.00 | 1,839,198.73 | 41,387,816.78 | Government grant |
Total | 42,377,015.51 | 850,000.00 | 1,839,198.73 | 41,387,816.78 |
Projects related to government grants:
Liabilities items | Balance as at 31 December 2022 | New subsidy amount in this period | Amount included in the current profit and loss in the current period | Other changes | Balance as at 30 June 2023 | Asset-related /Revenue-related |
Research and development of the third-generation high-strength steel for automobiles | 1,160,000.00 | 290,000.00 | 870,000.00 | Asset-related | ||
Carbon fiber wastewater advanced treatment project in Dongfeng plant area of sheet metal coking plant | 5,700,000.00 | 950,000.00 | 4,750,000.00 | Asset-related | ||
Desulfurization and denitrification project of coal-fired boiler in high-voltage workshop of Benxi Iron and Steel Power Plant | 2,400,000.00 | 300,000.00 | 2,100,000.00 | Asset-related | ||
Air Pollution Prevention and Control Fund - Second Sintering Cleaning and Dust Removal Ultra-low Emission Transformation Project | 1,230,000.00 | 205,000.00 | 1,025,000.00 | Asset-related | ||
2021 Special Fund Project for Intellectual Manufacturing and Strengthening the Province | 8,100,000.00 | 8,100,000.00 | Asset-related | |||
2021 Benxi City Expert Talent and Enterprise Docking Project | 5,000.00 | 5,000.00 | Asset-related | |||
2021 Benxi City Pollution Control and Energy Conservation and Carbon Reduction Special Project (Converter Gas Recovery and Efficiency Improvement Transformation Project) | 1,500,000.00 | 44,117.65 | 1,455,882.35 | Asset-related | ||
2021 Municipal Skillmaster Workstation Fees | 77,297.51 | 81.08 | 77,216.43 | Asset-related | ||
2018 Liaoning Provincial "Hundred Thousands of Talents Project" Funding Project | 220,000.00 | 220,000.00 | Asset-related | |||
2018 Municipal Skillmaster Workstation Fees | 58,766.34 | 58,766.34 | Asset-related |
Liabilities items | Balance as at 31 December 2022 | New subsidy amount in this period | Amount included in the current profit and loss in the current period | Other changes | Balance as at 30 June 2023 | Asset-related /Revenue-related |
2019 Municipal Skillmaster Workstation Fees | 69,500.19 | 69,500.19 | Asset-related | |||
2020 special ecological civilization construction project (special steel electric furnace upgrade project) | 20,000,000.00 | 20,000,000.00 | Asset-related | |||
Liaoning Artisan Subsidy | 2.97 | 2.97 | Asset-related | |||
Effect mechanism and control of rare earth oxysulfide on the plasticity of automobile steel | 334,448.50 | 334,448.50 | Asset-related | |||
Design of rare earth steel metallurgical slag system and research on its physical and chemical properties | 340,000.00 | 340,000.00 | Revenue-related | |||
Provincial Science and Technology Department National Natural Science Foundation of China-Liaoning Provincial Government Joint Fund Project | 334,000.00 | 334,000.00 | Revenue-related | |||
2019 Provincial Skill Master Workstation Fees | 200,000.00 | 200,000.00 | Revenue-related | |||
2020 Provincial Skillmaster Workstation Fees | 100,000.00 | 100,000.00 | Revenue-related | |||
Basic research on the new technology of composite iron coke low-carbon ironmaking charge | 168,000.00 | 168,000.00 | Revenue-related | |||
2021 the second batch of planned projects of Liaoning Provincial Central Government Guidance for Local Science and Technology Development Funds | 300,000.00 | 300,000.00 | Revenue-related | |||
2020 Liaoning Provincial "Hundred Thousands of Talents Project" Funding Project | 50,000.00 | 50,000.00 | Revenue-related | |||
Provincial Science and Technology Department 2022 Liaoning Provincial Natural Science Foundation Project Fund | 30,000.00 | 30,000.00 | Revenue-related |
Liabilities items | Balance as at 31 December 2022 | New subsidy amount in this period | Amount included in the current profit and loss in the current period | Other changes | Balance as at 30 June 2023 | Asset-related /Revenue-related |
2022 Liaoning will become a strong province with digital intelligence | 300,000.00 | 300,000.00 | Revenue-related | |||
Municipal enterprise operation patent navigation project funding subsidy | 200,000.00 | 200,000.00 | Revenue-related | |||
Xingliao Talents Program government subsidy | 350,000.00 | 350,000.00 | Revenue-related | |||
Total | 42,377,015.51 | 850,000.00 | 1,839,198.73 | 41,387,816.78 |
30. Share Capital
Items | Balance as at 31 December 2022 | Changes in the current period increase (+) decrease (-) | Balance as at 30 June 2023 | ||||
Issuance of new shares | Bonus shares | Provident fund converted into share | Others | Subtoal | |||
Total shares | 4,108,212,217.00 | 2,530.00 | 2,530.00 | 4,108,214,747.00 |
Other notes:
The increase in this period is due to the conversion of A-share convertible bonds issued bythe Company into 2,530.00 A-share ordinary shares. Please refer to Note V. (27) BondsPayable for details.
31. Other Equity Instruments
(1) Basic information on other financial instruments such as gold preferred shares and perpetual bonds issued outside at the end of the period
Other equity instruments at the end of the period are the equity part of convertible corporate bonds. For the basic information of convertible corporatebonds, please refer to Note V. (27) Bonds Payable.
(2) Changes in financial instruments such as preferred stocks and perpetual bonds issued at the end of the period
Financial instruments issued outside | 31 December 2022 | Additions in this period | Reductions in this period | 30 June 2023 | ||||
Number | Book value | Number | Book value | Number | Book value | Number | Book value | |
Convertible bonds | 56,310,521.00 | 947,863,834.02 | 100.00 | 2,035.66 | 56,310,421.00 | 947,861,798.36 | ||
Total | 56,310,521.00 | 947,863,834.02 | 100.00 | 2,035.66 | 56,310,421.00 | 947,861,798.36 |
A total of RMB 10,000.00 (100 bonds) of A-share convertible bonds issued by the Company were converted into ordinary A-shares of the Company duringthe period. As of June 30, 2023, the Company's remaining convertible bond balance is RMB 5,631,042,100.00 (56,310,421 bonds). For details, please referto Note V. (27) Bonds Payable.
32. Capital Reserves
Items | Balance as at 31 December 2022 | Additions in this period | Reductions in this period | Balance as at 30 June 2023 |
Capital premium (Equity premium) | 13,156,287,691.39 | 7,397.04 | 13,156,295,088.43 | |
Other capital reserves | 115,917,468.82 | 115,917,468.82 | ||
Total | 13,272,205,160.21 | 7,397.04 | 13,272,212,557.25 |
The increase in capital premium is due to the conversion of convertible bonds into theCompany’s A-share ordinary shares.
33. Other Comprehensive Income
Items | Balance as at 31 December 2022 | Current period | Balance as at 30 June 2023 | |||||
Amount before income tax in the current period | Less: included in other comprehensive income in the previous period and transferred to profit or loss in the current period | Less: included in other comprehensive income in the previous period and transferred to retained earnings in the current period | Less: income tax expense | Attributable to the parent company after tax | Attributable to minority shareholders after tax | |||
I. Other comprehensive income that will not be reclassified into profits and losses | -15,904,760.02 | -15,904,760.02 | ||||||
Including: Remeasurement of changes in defined benefit plan | ||||||||
Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||||||||
Changes in fair value of other equity instrument investments | -15,904,760.02 | -15,904,760.02 | ||||||
Changes in the fair value of the enterprise's own credit risk | ||||||||
2.Other comprehensive income which will be reclassified into profits and losses | ||||||||
Including: Other comprehensive income that can be transferred to profit or loss under the equity method | ||||||||
Changes in fair value of other debt investments | ||||||||
Amount of reclassification of financial assets included in other comprehensive income | ||||||||
Provision for credit impairment of other debt investments | ||||||||
Cash flow hedge reserve | ||||||||
Translation differences |
Items | Balance as at 31 December 2022 | Current period | Balance as at 30 June 2023 | |||||
Amount before income tax in the current period | Less: included in other comprehensive income in the previous period and transferred to profit or loss in the current period | Less: included in other comprehensive income in the previous period and transferred to retained earnings in the current period | Less: income tax expense | Attributable to the parent company after tax | Attributable to minority shareholders after tax | |||
of foreign currency financial statements | ||||||||
Total other comprehensive income | -15,904,760.02 | -15,904,760.02 |
34. Special Reserves
Items | Balance as at 31 December 2022 | Additions in this period | Reductions in this period | Balance as at 30 June 2023 |
Safety production fee | 2,217,913.77 | 34,099,757.81 | 7,307,318.69 | 29,010,352.89 |
Total | 2,217,913.77 | 34,099,757.81 | 7,307,318.69 | 29,010,352.89 |
35. Surplus Reserves
Items | Balance as at 31 December 2022 | Balance as at 1 January 2023 | Additions in this period | Reductions in this period | Balance as at 30 June 2023 |
Statutory surplus reserves | 1,195,116,522.37 | 1,195,116,522.37 | 1,195,116,522.37 | ||
Total | 1,195,116,522.37 | 1,195,116,522.37 | 1,195,116,522.37 |
36. Undistributed Profits
Items | Current period | Previous period |
Undistributed profit at the end of the previous year before adjustment | -720,559,670.73 | 2,977,306,297.64 |
Adjust the total undistributed profit at the beginning of the year (increase +, decrease -) | ||
Adjusted undistributed profit at the beginning of the year | -720,559,670.73 | 2,977,306,297.64 |
Add: Net profit attributable to owners of the parent company in the current period | -1,004,945,623.68 | -1,232,976,557.37 |
Other transfers | 25,416.40 | |
Less: Provision of statutory surplus reserve | ||
Provision of any provident fund | ||
Provision of general risk reserve in the current period | ||
Dividends payable on common stock | 2,464,914,827.40 |
Items | Current period | Previous period |
Common stock dividends transferred to share capital | ||
Other transfers | ||
Undistributed profit at the end of the period | -1,725,505,294.41 | -720,559,670.73 |
Adjustment of undistributed profit details at the beginning of the period: due to theretrospective adjustment of the “Accounting Standards for Business Enterprises” andrelated new regulations, the undistributed profit at the beginning of the period wasaffected by RMB 10,592,129.13.
37. Operating Income and Operating Costs
Details of operating income and operating costs
Items | Current period | Previous period | ||
Revenue | Costs | Revenue | Costs | |
Principal business | 30,178,980,302.21 | 30,346,840,599.33 | 33,109,977,666.90 | 31,509,788,033.31 |
Other business | 388,428,902.82 | 367,800,364.58 | 1,905,199,638.08 | 1,867,689,507.32 |
Total | 30,567,409,205.03 | 30,714,640,963.91 | 35,015,177,304.98 | 33,377,477,540.63 |
Details of operating income:
Contract classification | Principal business income | Other business income | Total |
Classified by business area | |||
Domestic | 26,612,052,408.77 | 388,428,902.82 | 27,000,481,311.59 |
Abroad | 3,566,927,893.44 | 3,566,927,893.44 | |
Total | 30,178,980,302.21 | 388,428,902.82 | 30,567,409,205.03 |
Classified by the time of commodity transfer | |||
Recognized at a certain point in time | 30,178,980,302.21 | 387,065,834.86 | 30,566,046,137.07 |
Recognized over a certain period of time | 1,363,067.96 | 1,363,067.96 | |
Total | 30,178,980,302.21 | 388,428,902.82 | 30,567,409,205.03 |
38. Tax and surcharges
Items | Current period | Previous period |
City maintenance and construction tax | 6,576,796.79 | 4,726,087.15 |
Educational surcharge | 4,800,732.70 | 3,554,726.34 |
Housing property tax | 40,884,994.48 | 40,822,272.51 |
Land use right tax | 6,075,969.40 | 6,847,915.75 |
Environmental tax | 9,527,874.78 | 11,411,384.22 |
Stamp duty | 30,849,463.63 | 32,496,146.38 |
Others | 324,845.97 | 26,912.88 |
Total | 99,040,677.75 | 99,885,445.23 |
39. Selling Expenses
Items | Current period | Previous period |
Import and export agency fee | 21,131,652.66 | 36,702,096.00 |
Salary and benefits | 37,771,652.79 | 18,244,427.10 |
Package fee | 4,973,464.77 | |
Others | 9,615,841.56 | 7,510,887.30 |
Sales service fee | 1,382,736.23 | |
Total | 69,901,883.24 | 67,430,875.17 |
40. Administrative Expenses
Items | Current period | Previous period |
Employee's salaries | 206,440,312.89 | 149,216,492.01 |
Repair expenses | 298,281.38 | 105,587,548.07 |
Heating costs | 34,042,689.20 | 19,965,273.48 |
Depreciation | 19,462,599.70 | 22,309,498.45 |
land use fees | 1,322,782.02 | 19,696,001.68 |
Environmental protection fees | 4,442,540.02 | 1,099,369.60 |
Water resources fees | 16,331,031.46 | 3,176,610.83 |
Others | 57,228,784.82 | 31,253,889.98 |
Total | 339,569,021.49 | 352,304,684.10 |
41. Research and Development Expenses
Items | Current period | Previous period |
Depreciation, materials and wages, etc. | 32,990,679.09 | 22,368,496.87 |
Total | 32,990,679.09 | 22,368,496.87 |
42. Finance Costs
Items | Current period | Previous period |
Interest expenses | 234,419,462.35 | 342,674,208.42 |
Including: Interest expense on lease liabilities | 27,047,108.38 | 27,576,079.44 |
Less: Interest income | 27,351,519.21 | 61,019,147.27 |
Exchange gains and losses | -49,493,753.99 | 5,012,400.26 |
Other expenses | 3,983,576.72 | 6,425,946.41 |
Total | 161,557,765.87 | 293,093,407.82 |
43. Other income
Items | Current period | Previous period |
Government grant | 2,379,198.73 | 30,272,965.00 |
Withholding personal income tax handling fee | 913,893.41 | |
Others | 225,000.00 | 382,577.92 |
Total | 3,518,092.14 | 30,655,542.92 |
44. Investment Income
Items | Current period | Previous period |
Long-term equity investment income measured by equity method | -439,659.58 | 85,455.22 |
Investment income from disposal of long-term equity investment | -294,462.57 | |
Investment income from disposal of financial assets held-for-trading | -2,502,067.50 | |
Investment income from debt restructuring | 694,683.35 | |
Others | 30,387.62 | |
Total | -2,541,506.30 | 115,842.84 |
45. Credit Impairment Losses
Items | Current period | Previous period |
Bad debt loss of accounts receivable | 18,426,234.94 | -2,845,559.93 |
Bad debt loss of other receivables | -35,877,008.41 | 2,051,653.20 |
Total | -17,450,773.47 | -793,906.73 |
46. Asset Impairment Losses
Items | Current period | Previous period |
Inventory falling price loss and impairment loss on contract performance costs | -84,458,260.66 | -72,880,991.53 |
Total | -84,458,260.66 | -72,880,991.53 |
47. Gains on Disposal of Assets
Items | Current period | Previous period | Amount included in the current non-recurring gains and losses |
Gains or losses on disposal of fixed assets not classified as held for sale | 3,648,546.62 | ||
Total | 3,648,546.62 |
48. Non-operating Income
Items | Current period | Previous period | Amount included in the current non-recurring gains and losses |
Gains from damage and scrapping of non-current assets | 17,095,345.19 | 711,708.55 | 17,095,345.19 |
Compensation for breach of contract | 980,399.63 | 980,399.63 | |
Unpayable accounts payable | 2,447,931.60 | 27,948,070.49 | 2,447,931.60 |
Others | 31,060,871.61 | 1,912,502.31 | 31,060,871.61 |
Total | 51,584,548.03 | 30,572,281.35 | 51,584,548.03 |
49. Non-operating Expenses
Items | Current period | Previous period | Amount included in the current non-recurring gains and losses |
Non-current asset damage and scrapping loss | 48,484,833.89 | 10,765,339.79 | 48,484,833.89 |
Fines, compensation for breach of contract, compensation payments | 2,072,844.13 | 2,072,844.13 | |
Others | 27,649.11 | 27,649.11 | |
Total | 50,585,327.13 | 10,765,339.79 | 50,585,327.13 |
50. Income Tax Expenses
(1) Income tax expense table
Items | Current period | Previous period |
Current income tax expenses | 46,665,568.90 | 197,785,904.70 |
Deferred tax expenses | -13,473,858.06 | 5,419,049.90 |
Total | 33,191,710.84 | 203,204,954.60 |
(2) Accounting profit and income tax expense adjustment process
Items | Current period |
Total profit | -950,225,013.71 |
Income tax expense calculate according to the official or applicable tax rate | -242,556,253.43 |
Impact of different tax rates applicable to subsidiaries | |
Effect of adjusting prior period income taxes | 22,945,743.75 |
Effect of non-taxable income | -109,914.90 |
Effect of non-deductible costs, expenses or losses | 100,437.96 |
Effect of use of deductible losses of unrecognized deferred tax asset of prior period | -543,713.22 |
The impact of deductible temporary differences or deductible losses of deferred income tax assets not recognized in the current period | 255,856,087.61 |
Others | -2,500,676.93 |
Income tax expenses | 33,191,710.84 |
51. Notes of Statement of Cash Flows
(1) Cash received from other operating activities
Items | Current period | Previous period |
Recover current payment and advance payment | 36,965,273.21 | 97,205,274.52 |
Interest income | 27,351,519.21 | 61,019,147.27 |
Special subsidies and grants | 850,000.00 | 9,690,000.00 |
Others | 980,399.63 | 804,702.43 |
Total | 66,147,192.05 | 168,719,124.22 |
(2) Cash paid for other operating activities
Items | Current period | Previous period |
Current payment with different entities | 28,422,075.16 | 22,514,446.73 |
Administrative expenses | 112,917,219.14 | 168,184,142.54 |
Selling expenses | 32,130,230.45 | 50,910,874.42 |
Handling fee | 3,983,576.72 | 6,425,946.41 |
Others | 1,023,567.21 | |
Total | 177,453,101.47 | 249,058,977.31 |
(3) Cash received from other financing activities
Items | Current period | Previous period |
Margin for bill, letter of guarantee and letter of credit | 299,914,718.38 | 2,548,792,921.60 |
Total | 299,914,718.38 | 2,548,792,921.60 |
(4) Cash paid for other financing activities
Items | Current period | Previous period |
Margin for bill, letter of guarantee and letter of credit | 695,121,631.51 | 71,693,646.43 |
Total | 695,121,631.51 | 71,693,646.43 |
52. Supplementary Information to Cash Flow Statement
(1) Supplementary information to cash flow statement
Supplementary information | Current period | Previous period |
1. Reconciliation of net profit to cash flows from operating activities | ||
Net profit | -983,416,724.55 | 579,963,876.24 |
Add: Credit impairment loss | 17,450,773.47 | 793,906.73 |
Impairment of assets | 84,458,260.66 | 72,880,991.53 |
Depreciation of fixed assets | 823,089,855.07 | 1,105,263,552.94 |
Depletion of oil and gas properties | ||
Depreciation of right-of-use assets | 30,187,267.26 | 30,187,267.22 |
Amortization of intangible assets | 3,039,005.87 | 3,690,085.26 |
Amortization of long-term deferred expenses | ||
Losses on disposal of fixed assets, intangible assets and other long-term assets("-" for net income) | -3,648,546.62 | |
Losses on retirement of fixed assets("-" for net income) | 31,389,488.70 | 10,053,631.24 |
Losses from changes in fair value("-" for net income) | ||
Finance expenses("-" for net income) | 184,925,708.36 | 342,674,208.42 |
Investment loss("-" for net income) | 2,541,506.30 | -115,842.84 |
Decrease in deferred tax assets("-" for increase) | -11,622,984.29 | 5,419,049.90 |
Increase in deferred tax liabilities("-" for decrease) | ||
Decrease in inventory("-" for increase) | 784,701,660.05 | 1,435,572,851.38 |
Decrease in operating receivables("-" for increase) | -816,626,771.10 | 2,160,572,533.72 |
Increase in operating payables("-" for decrease) | 4,512,520,236.01 | -5,468,912,532.78 |
Others | -46,943,190.13 | |
Net cash flow from operating activities | 4,662,637,281.81 | 227,451,842.21 |
2. Significant investment and financing activities that do not involve cash receipts and payments: | ||
Conversion of debt into capital | ||
Convertible corporate bonds due within one year | ||
Leasing of fixed assets through financing | ||
3. Net changes in cash and cash equivalents: | ||
Closing balance of cash | 3,135,535,935.14 | 4,750,473,298.51 |
Less: Opening balance of cash | 1,296,662,683.20 | 6,299,099,063.48 |
Add: Closing balance of cash equivalents | ||
Less: Opening balance of cash | ||
Net increase in cash and cash equivalents | 1,838,873,251.94 | -1,548,625,764.97 |
(2) Composition of cash and cash equivalents
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
I. Cash | 3,135,535,935.14 | 1,296,662,683.20 |
Including: Cash on hand | ||
Digital currency available for payment at any time | ||
Bank deposits available for payment at any time | 3,135,535,935.14 | 1,296,662,683.20 |
Other monetary funds readily available for payment | ||
Money deposited with the central bank for payment | ||
Interbank deposit | ||
Interbank money | ||
II. Cash equivalents | ||
Including: Bond investments maturing within three months | ||
III. Balance of cash and cash equivalents at the end of the period | 3,135,535,935.14 | 1,296,662,683.20 |
Including: Restricted cash and cash equivalents used by the parent company or subsidiaries within the group |
53. Assets whose Ownership or Use Rights Are Restricted
Items | Balance as at 30 June 2023 | Reason for restriction |
Monetary funds | 521,023,596.93 | Deposit for notes and letter of credit |
Notes receivable | 255,189,626.40 | Pledge for banker's acceptance bill |
Total | 776,213,223.33 |
54. Foreign Currency Monetary Items
(1) Foreign currency monetary items
Items | Closing balance of foreign currency | Translation rate | Closing balance converted into RMB |
Monetary funds | 562,525,888.30 | ||
Including: U.S. Dollar | 77,083,100.68 | 7.2258 | 556,987,068.89 |
Euro | 2,840.49 | 7.8771 | 22,374.82 |
Hong Kong Dollar | 5,983,128.62 | 0.9220 | 5,516,444.59 |
Long-term borrowings | 5,225,029.20 | ||
Including: U.S. Dollar | |||
Euro | |||
Hong Kong Dollar | 104,292,000.00 | 0.0501 | 5,225,029.20 |
(2) The company has no overseas operating entities.
55. Government Grants
(1) Government grants related to assets
Types | Amount | Items presented in the statement of financial position | Amount included in the current profit and loss or offsetting related costs and expenses | Items included in current profit or loss or written off related costs and expenses | |
Current period | Previous period | ||||
Research and development of the third-generation high-strength steel for automobiles | 2,900,000.00 | Deferred income | 290,000.00 | 290,000.00 | Other income |
Carbon fiber wastewater advanced treatment project in Dongfeng plant area of sheet metal coking plant | 9,500,000.00 | Deferred income | 950,000.00 | 950,000.00 | Other income |
Desulfurization and denitrification project of coal-fired boiler in high-voltage workshop of Benxi Iron and Steel Power Plant | 6,000,000.00 | Deferred income | 300,000.00 | 300,000.00 | Other income |
Air Pollution Prevention and Control Fund - Second Sintering Cleaning and Dust Removal Ultra-low Emission Transformation Project | 2,050,000.00 | Deferred income | 205,000.00 | 205,000.00 | Other income |
2021 Special Fund Project for Intellectual Manufacturing and Strengthening the Province | 8,100,000.00 | Deferred income | Other income | ||
2021 Benxi City Pollution Control and Energy Conservation and Carbon Reduction Special Project (Converter Gas Recovery and Efficiency | 1,500,000.00 | Deferred income | 44,117.65 | Other income |
Types | Amount | Items presented in the statement of financial position | Amount included in the current profit and loss or offsetting related costs and expenses | Items included in current profit or loss or written off related costs and expenses | |
Current period | Previous period | ||||
Improvement Transformation Project) | |||||
2021 Municipal Skillmaster Workstation Fees | 80,000.00 | Deferred income | 81.08 | Other income | |
The 2018 Liaoning Provincial "Hundred Thousands of Talents Project" Funding Project | 250,000.00 | Deferred income | Other income | ||
2018 Municipal Skillmaster Workstation Fees | 240,000.00 | Deferred income | Other income | ||
2019 Municipal Skillmaster Workstation Fees | 180,000.00 | Deferred income | Other income | ||
2020 special ecological civilization construction project (special steel electric furnace upgrade project) | 20,000,000.00 | Deferred income | Other income | ||
Liaoning Artisan Subsidy | 180,000.00 | Deferred income | Other income | ||
Flue gas desulfurization project of seven 130-ton combustion boilers in a power plant | 24,000,000.00 | Deferred income | 2,400,000.00 | Other income | |
Fund for cogeneration renovation project of the third electric workshop of the power plant | 10,000,000.00 | Deferred income | 1,000,000.00 | Other income | |
Cold-rolled high-strength steel transformation project | 250,000,000.00 | Deferred income | 25,000,000.00 | Other income |
(2) Government grants related to income
Types | Amount | Amount included in the current profit and loss or offsetting related costs and expenses | Items included in current profit or loss or written off related costs and expenses | |
Current period | Previous period | |||
Effect mechanism and control of rare earth oxysulfide on the plasticity of automobile steel | 547,040.00 | 122,965.00 | Other income | |
2021 Benxi City Expert Talent and Enterprise Docking Project | 10,000.00 | 5,000.00 | Other income | |
Design of rare earth steel metallurgical slag system and research on its physical and chemical properties | 340,000.00 | Other income | ||
Provincial Science and Technology Department National Natural Science Foundation of China-Liaoning Provincial Government Joint Fund Project | 334,000.00 | Other income | ||
2019 Provincial Skill Master Workstation Fees | 200,000.00 | Other income | ||
2020 Provincial Skillmaster Workstation Fees | 100,000.00 | Other income | ||
Basic research on the new technology of composite iron coke low-carbon ironmaking charge | 168,000.00 | Other income | ||
In 2021, the second batch of planned projects of Liaoning Provincial Central Government Guidance for Local Science and Technology Development Funds | 300,000.00 | Other income | ||
The 2020 Liaoning Provincial "Hundred Thousands of Talents Project" Funding Project | 50,000.00 | 50,000.00 | Other income | |
Provincial Science and Technology Department 2022 Liaoning Provincial Natural Science Foundation Project | 30,000.00 | Other income |
Types | Amount | Amount included in the current profit and loss or offsetting related costs and expenses | Items included in current profit or loss or written off related costs and expenses | |
Current period | Previous period | |||
Fund | ||||
In 2022, Liaoning will become a strong province with digital intelligence | 300,000.00 | Other income | ||
Municipal enterprise operation patent navigation project funding subsidy | 200,000.00 | Other income | ||
"Xingliao Talents Program" government subsidy | 350,000.00 | Other income |
56. Leases
As lessee
Items | Current period | Previous period |
Interest expense on the lease liabilities | 27,047,108.38 | 27,576,079.44 |
Simplified short-term lease expenses included in relevant asset costs or current profit and loss | ||
Simplified rental expenses of low-value assets included in relevant asset costs or current profit and loss (except for short-term rental expenses of low-value assets) | ||
Variable lease payments not included in the measurement of lease liabilities that are included in the cost of related assets or current profit and loss | ||
Including: the part generated by the sale and leaseback transaction | ||
Income from sub-leasing of right-of-use assets | ||
Total cash outflows related to leases | 46,640,413.20 | 46,846,358.31 |
Related gains and losses arising from sale and leaseback transactions | ||
Cash inflow from sale and leaseback transactions | ||
Cash outflow from sale and leaseback transactions |
VI. Changes in the scope of consolidation
There is no change in the scope of consolidation in this period.
VII. Interests in Other Entities
1. Interests in Subsidiaries
(1) Composition of the corporate group
Name of the subsidiaries | Principal place of business | Registered address | Nature of business | Shareholding ratio | Acquiring method | |
Direct | Indirect | |||||
Guangzhou Bensteel Trading Co., Ltd. | Guangzhou | Guangzhou | Sale | 100 | Set up | |
Shanghai Bensteel Metallurgical Technology Co., Ltd. | Shanghai | Shanghai | Sale | 100 | Set up | |
Dalian Benruitong Automotive Material Technology Co., Ltd. | Dalian | Dalian | Production | 65 | Set up | |
Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd. | Benxi | Benxi | Production | 75 | Business combination under common control | |
Changchun Bensteel Sales Co., Ltd. | Changchun | Changchun | Sale | 100 | Business combination under common control | |
Yantai Bengang Iron and Steel Sales Co., Ltd. | Yantai | Yantai | Sale | 100 | Business combination under common control | |
Tianjin Bengang Iron and Steel Trading Co., Ltd. | Tianjin | Tianjin | Sale | 100 | Business combination under common control | |
Benxi Bensteel Sales Co., Ltd. | Benxi | Benxi | Sale | 100 | Set up | |
Shenyang Bensteel Metallurgical Technology Co., Ltd. | Shenyang | Shenyang | Sale | 100 | Set up |
Explanation that the proportion of shares held in subsidiaries is different from theproportion of voting rights: there is no such matter in the Company.
Basis for holding half or less of the voting rights but still controlling the investedcompany, and holding more than half of the voting rights but not controlling theinvested company: the Company does not have such matters.For important structured entities included in the scope of consolidation, the basisfor control: there is no such matter in the Company.
(2) Significant but not wholly-owned subsidiaries
Name of the subsidiaries | Proportion of non-controlling interests (%) | Profits and losses attributing to non-controlling shareholders | Dividend declared to distribute to non-controlling shareholders | Closing balance of non-controlling interests |
Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd. | 25% | 17,461,806.81 | 595,620,461.21 |
Explanation that the shareholding ratio of the minority shareholders of thesubsidiary is different from the ratio of voting rights: there is no such matter in theCompany.
(3) Main financial information of important non-wholly owned subsidiaries
Name of the subsidiaries | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||||||||||
Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd. | 3,611,025,289.22 | 984,679,076.32 | 4,595,704,365.54 | 2,213,222,520.70 | 2,213,222,520.70 | 2,642,318,664.91 | 1,031,753,449.22 | 3,674,072,114.13 | 1,370,714,059.80 | 1,370,714,059.80 |
Name of the subsidiaries | Current period | Previous period | ||||||
Operating income | Net profit | Total comprehensive income | Net cash flows from operating activities | Operating income | Net profit | Total comprehensive income | Net cash flows from operating activities | |
Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd. | 4,253,071,574.21 | 69,847,227.23 | 69,847,227.23 | 171,658,194.18 | 5,229,533,000.35 | 91,532,242.77 | 91,532,242.77 | 306,038,909.09 |
2. Interests in Joint Arrangements or Associates
(1) Important joint ventures or associates
The Company has no significant joint ventures or associates.
(2) Summary financial information of insignificant joint ventures and associates
Balance as at 30 June 2023/ Current period | Balance as at 31 December 2022/ Previous period | |
Associates: | ||
Total book value of investments | 47,556,655.02 | 51,030,777.18 |
Total of the following items calculated according to the shareholding ratio | ||
—Net profit | -734,122.16 | -1,444,809.15 |
—Other comprehensive income | ||
—Total comprehensive income | -734,122.16 | -1,444,809.15 |
VIII. Risks Associated with Financial Instruments
The Company faces various financial risks in the course of operation: credit risk, liquidityrisk and market risk (including exchange rate risk, interest rate risk and other price risks).The above financial risks and the risk management policies adopted by the Company toreduce these risks are as follows:
The Board of Directors is responsible for planning and establishing the Company's riskmanagement structure, formulating the Company's risk management policies and relevantguidelines, and supervising the implementation of risk management measures. TheCompany has formulated risk management policies to identify and analyze the risks facedby the Company. These risk management policies clearly stipulate specific risks, coveringmany aspects such as market risk, credit risk and liquidity risk management. TheCompany regularly evaluates changes in the market environment and the Company’sbusiness activities to determine whether to update risk management policies and systems.The Company’s risk management is carried out by the Risk Management Committee inaccordance with the policies approved by the Board of Directors. The Risk ManagementCommittee identifies, evaluates and avoids relevant risks through close cooperation withother business departments of the company. The company’s internal audit departmentconducts regular audits on risk management controls and procedures, and reports the audit
results to the company's audit committee.The overall goal of the Company’s risk management is to formulate risk managementpolicies that reduce risks as much as possible without excessively affecting theCompany’s competitiveness and resilience.
1. Credit risk
Credit risk refers to the risk that the counterparty fails to perform its contractualobligations and cause financial losses to the Company.The Company mainly faces customer credit risk caused by credit sales. Before enteringinto a new contract, the Company conducts an assessment of the credit risk of the newclient, including an external credit rating and, in some cases, bank references (when thisinformation is available). The Company sets a credit sales limit for each customer, whichis the maximum amount that does not require additional approval.The Company ensures that the company's overall credit risk is within a controllable rangethrough regular monitoring of existing customer credit ratings and regular review ofaccounts receivable aging analysis. When monitoring the credit risk of customers, groupthem according to their credit characteristics. Customers rated as "high risk" will beplaced on a restricted customer list, and only with additional approval, the Company cansell to them on credit in the future, otherwise they must be required to pay thecorresponding amount in advance.
2. Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills itsobligations for settlement by delivery of cash or other financial assets.It is the Company's policy to ensure that it has sufficient cash to meet debt obligations asthey fall due. Liquidity risk is centrally controlled by the Company's financial department.The financial department ensures that the company has sufficient funds to repay debtsunder all reasonable forecasts by monitoring cash balances, marketable securities that canbe realized at any time, and rolling forecasts of cash flows for the next 12 months. At thesame time, continue to monitor whether the company complies with the provisions of theloan agreement, and obtain commitments from major financial institutions to providesufficient backup funds to meet short-term and long-term funding needs.The Company's various financial liabilities are listed as follows in terms of undiscountedcontractual cash flow by maturity date:
Amount unit: RMB ten thousand
Items | Balance as at 30 June 2023 | |||||
Repayment on demand | Within 1 year | 1-2 years | 2-5 years | Over 5 years | Total | |
Trade and other payables | 920,298.97 | 920,298.97 | ||||
Borrowing and interest | 252,786.75 | 40,752.91 | 83,945.86 | 377,485.52 | ||
Total | 1,173,085.72 | 40,752.91 | 83,945.86 | 1,297,784.49 |
Items | Balance as at 31 December 2022 | |||||
Repayment on demand | Within 1 year | 1-2 years | 2-5 years | Over 5 years | Total | |
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 |
3. Market risk
The market risk of financial instruments refers to the risk of fluctuations in the fair valueor future cash flow of financial instruments due to changes in market prices, includingexchange rate risk, interest rate risk and other price risks.
(1) Interest rate risk
Interest rate risk refers to the risk of fluctuations in the fair value of financialinstruments or future cash flows due to changes in market interest rates.The interest rate risk faced by the Company mainly comes from floating-rate bankdeposits and floating-rate loans to bear the cash flow interest rate risk. TheCompany has not formulated a policy to manage its interest rate risk, but themanagement will carefully choose financing methods, combining fixed andfloating interest rates, short-term debt and long-term debt. Utilize effective interestrate risk management methods, closely monitor interest rate risk, and use interestrate swaps when necessary to achieve the expected interest rate structure.
(2) Exchange rate risk
Exchange rate risk refers to the risk of fluctuations in the fair value of financialinstruments or future cash flows due to changes in foreign exchange rates.The Company continuously monitors the scale of foreign currency transactions andforeign currency assets and liabilities to minimize the foreign exchange risk it faces.In addition, the Company may also sign forward foreign exchange contracts orcurrency swap contracts to achieve the purpose of avoiding exchange rate risks.During the reporting period, the Company did not sign any forward foreignexchange contracts or currency swap contracts.The exchange rate risk faced by the Company mainly comes from the financialassets and financial liabilities denominated in US dollars. The amount of foreigncurrency financial assets and foreign currency financial liabilities converted intoRMB is listed as follows:
Amount unit: RMB ten thousand
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||||
US dollar | Other foreign currency | Total | US dollar | Other foreign currency | Total | |
Assets | 55,698.71 | 553.88 | 56,252.59 | 4,428.43 | 495.12 | 4,923.55 |
Liabilities | 522.50 | 522.50 | 4,979.69 | 21,521.13 | 26,500.82 | |
Total | 55,698.71 | 1,076.38 | 56,775.09 | 9,408.12 | 22,016.25 | 31,424.37 |
On June 30, 2023, with all other variables held constant, if the exchange rates ofthe U.S. dollar, the euro, and the Japanese yen against the renminbi appreciate ordepreciate by 5%, then the Company will increase or decrease the net profit byRMB 27.865 million (31 December 2022: RMB 10.7886 million). Themanagement believes that 5% reasonably reflects the reasonable range of possiblechanges of the US dollar, Euro and Japanese yen against RMB in the next year.
IX. Disclosure of Fair Value
The input values used in fair value measurement are divided into three levels:
The first-level input value is the unadjusted quoted price in an active market for the sameasset or liability that can be obtained on the measurement date.The second-level input value is the directly or indirectly observable input value of the
relevant asset or liability other than the first-level input value.The third-level input value is the unobservable input value of related assets or liabilities.The level to which the fair value measurement results belong is determined by the lowestlevel to which the input values that are important to the fair value measurement as awhole belong.
1. Closing Fair Value of Assets and Liabilities Measured at Fair Value
Items | Closing fair value | |||
The first level of fair value measurement | The second level of fair value measurement | The third level of fair value measurement | Total | |
I. Continuous fair value measurement | ||||
◆Financial assets held-for-trading | ||||
1. Financial assets measured at fair value through profit or loss | ||||
(1) Investment in debt instruments | ||||
(2) Investment in equity instruments | ||||
(3) Derivative financial assets | ||||
(4)Others | ||||
2. Designated as financial assets at fair value through profit or loss | ||||
(1) Investment in debt instruments | ||||
(2) Others | ||||
◆Accounts receivable financing | 953,938,535.80 | 953,938,535.80 | ||
◆Other debt investments | ||||
◆Other equity instruments investments | 1,020,418,482.31 | 1,020,418,482.31 | ||
◆Other non-current financial assets | ||||
1. Financial assets measured |
Items | Closing fair value | |||
The first level of fair value measurement | The second level of fair value measurement | The third level of fair value measurement | Total | |
at fair value through profit or loss | ||||
(1) Investment in debt instruments | ||||
(2) Investment in equity instruments | ||||
(3) Derivative financial assets | ||||
(4)Others | ||||
2. Designated as financial assets at fair value through profit or loss | ||||
(1) Investment in debt instruments | ||||
(2) Others | ||||
Total assets continuously measured at fair value | 1,974,357,018.11 | 1,974,357,018.11 | ||
◆Financial liabilities held-for-trading | ||||
1. Financial liabilities held-for-trading | ||||
(1) Trading bonds issued | ||||
(2) Derivative financial liabilities | ||||
(3)Others | ||||
2. Designated as financial liabilities at fair value through profit or loss | ||||
Total liabilities continuously measured at fair value | ||||
II. Non-continuous fair value measurement | ||||
◆Assets held for sale | ||||
Total assets non-continuous fair value measurement | ||||
◆Liabilities held for sale | ||||
Total liabilities non-continuous fair value |
Items | Closing fair value | |||
The first level of fair value measurement | The second level of fair value measurement | The third level of fair value measurement | Total | |
measurement |
2. The basis for determining the market value of the continuous and non-continuous
first-level fair value measurement projectsThe 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 importantparametersThe 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 importantparametersOther equity instrument investments that continue to be measured at the third level of fairvalue are unlisted equity investments held by the Company.The receivable financing of continuous third-level fair value measurement is the banker’sacceptance bill held by the Company, and its fair value is confirmed with reference to theface value.The Company uses valuation techniques for fair value measurement, mainly using thevaluation techniques of the non-listed company comparison method.
X. Related Party and Related Party Transactions
1. Information about the Parent of the Company
Name of parent | Registration place | Business nature | Registered capital (100 million yuan) | The parent company's shareholding percentage in the Company(%) | Proportion of voting rights of the parent company to the Company(%) |
Benxi Steel and Iron (Group) Co., Ltd. | Benxi, Liaoning | Manufacturing | 74.01 | 58.65 | 58.65 |
The ultimate controlling party of the Company is Ansteel Group Co., Ltd.
2. Subsidiaries of the Company
For the details of the Company's subsidiaries, please refer to "VII. Interests in OtherEntities" in this note.
3. The Company's Joint Ventures and Associates
For details of the important joint ventures or associates of the Company, please refer to"VII. Interests in other entities" in this note.The situation of other joint ventures or associates that had related party transactions withthe Company in the current period, or had balances with the Company in the previousperiod is as follows:
Name of joint venture or associate | Relationship with the Company |
Bengang Baojin (Shenyang) Automotive New Material Technology Co., Ltd. | Associate |
Zhejiang Bengang Jingrui Steel Processing Co., Ltd. | Associate |
4. Situation of Other Related Parties
Name of other related parties | Relationship between other related parties and the Company |
Bensteel Group Co., Ltd. | Controlling shareholder of the parent company |
Ansteel Electric Co., Ltd. | Both belong to Ansteel Group |
Ansteel Scrap Resources (Anshan) Co., Ltd. | Both belong to Ansteel Group |
Ansteel Scrap Resources (Anshan) Co., Ltd. Chaoyang Branch | Both belong to Ansteel Group |
Ansteel Processing and Distribution (Dalian) Co., Ltd. | Both belong to Ansteel Group |
Ansteel Processing and Distribution (Changchun) Co., Ltd. | Both belong to Ansteel Group |
Ansteel Processing and Distribution (Zhengzhou) Co., Ltd. | Both belong to Ansteel Group |
Ansteel Distribution (Hefei) Co., Ltd. | Both belong to Ansteel Group |
Ansteel Distribution (Wuhan) Co., Ltd. | Both belong to Ansteel Group |
Ansteel Rope Co., Ltd. | Both belong to Ansteel Group |
Ansteel Co., Ltd. | Both belong to Ansteel Group |
Ansteel Chemical Technology Co., Ltd. | Both belong to Ansteel Group |
Ansteel Group (Anshan) Railway Transportation Equipment Manufacturing Co., Ltd. | Both belong to Ansteel Group |
Ansteel Group Finance Co., Ltd. | Both belong to Ansteel Group |
Ansteel Group Engineering Technology Development Co., Ltd. | Both belong to Ansteel Group |
Ansteel Group Engineering Technology Co., Ltd. | Associate of Ansteel Group |
Ansteel Group International Economic and Trade Co., Ltd. | Both belong to Ansteel Group |
Ansteel Group Mining Gongchangling Co., Ltd. | Both belong to Ansteel Group |
Ansteel Group Mining Co., Ltd. | Both belong to Ansteel Group |
Ansteel Group Co., Ltd. | Both belong to Ansteel Group |
Ansteel Group Automation Co., Ltd. | Both belong to Ansteel Group |
Ansteel Construction Group Co., Ltd. | Both belong to Ansteel Group |
Ansteel Metal Structure Co., Ltd. | Both belong to Ansteel Group |
Ansteel Technology Development Co., Ltd. | Both belong to Ansteel Group |
Ansteel Mining Machinery Manufacturing Co., Ltd. | Both belong to Ansteel Group |
Ansteel Green Resources Technology Co., Ltd. | Both belong to Ansteel Group |
Ansteel Energy Technology Co., Ltd. | Both belong to Ansteel Group |
Ansteel Industrial Group (Anshan) Equipment Operation and Maintenance Co., Ltd. | Both belong to Ansteel Group |
Ansteel Industrial Group Metallurgical Machinery Co., | Both belong to Ansteel Group |
Name of other related parties | Relationship between other related parties and the Company |
Ltd. | |
Ansteel Shuangsheng (Anshan) Fan Co., Ltd. | Both belong to Ansteel Group |
Ansteel Modern City Service (Anshan) Co., Ltd. | Both belong to Ansteel Group |
Ansteel Roll Co., Ltd. | Both belong to Ansteel Group |
Ansteel Heavy Machinery Design and Research Institute Co., Ltd. | Both belong to Ansteel Group |
Ansteel Heavy Machinery Co., Ltd. | Both belong to Ansteel Group |
Ansteel Cast Steel Co., Ltd. | Both belong to Ansteel Group |
North Hengda Logistics Co., Ltd. | Both belong to Bensteel Group |
Bengang Stainless Steel Cold Rolling Dandong Co., Ltd. | Same parent company |
Bengang Electric Co., Ltd. | Associate of parent company |
Bensteel Group Finance Co., Ltd. | Both belong to Bensteel Group |
Bensteel Group International Economic and Trade Co., Ltd. | Both belong to Bensteel Group |
Bengang Tendering Co., Ltd. | Both belong to Bensteel Group |
Benxi Beitai Casting Pipe Co., Ltd. | Both belong to Bensteel Group |
Benxi Beiying Iron and Steel (Group) Co., Ltd. | Both belong to Bensteel Group |
Benxi Iron and Steel (Group) Real Estate Development Co., Ltd. | Same parent company |
Benxi Iron and Steel (Group) Engineering Construction Supervision Co., Ltd. | Same parent company |
Benxi Iron and Steel (Group) Machinery Manufacturing Co., Ltd. | Same parent company |
Benxi Iron and Steel (Group) Construction Co., Ltd. | Same parent company |
Benxi Iron and Steel (Group) Mining Co., Ltd. | Same parent company |
Benxi Iron and Steel (Group) Thermal Power Development Co., Ltd. | Same parent company |
Benxi Iron and Steel (Group) Equipment Engineering Co., Ltd. | Same parent company |
Benxi Iron and Steel (Group) Design and Research Institute | Same parent company |
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. | Same parent company |
Benxi Iron and Steel (Group) Information Automation Co., Ltd. | Same parent company |
Benxi Iron and Steel (Group) Construction Co., Ltd. | Same parent company |
Benxi Iron and Steel (Group) Metallurgical Slag Co., Ltd. | Same parent company |
Benxi Steel and Iron (Group) Co., Ltd. | Parent company |
Benxi Iron and Steel (Group) Chint Building Materials Co., Ltd. | Same parent company |
Name of other related parties | Relationship between other related parties and the Company |
Benxi High-tech Drilling Tools Manufacturing Co., Ltd. | Both belong to Bensteel Group |
Benxi New Business Development Co., Ltd. | Same parent company |
Chengdu Pangang Hotel Co., Ltd. | Both belong to Ansteel Group |
Dalian Borolle Steel Pipe Co., Ltd. | Same parent company |
Delin Industrial Products Co., Ltd. | Both belong to Ansteel Group |
Delin Lugang Supply Chain Service Co., Ltd. | Both belong to Ansteel Group |
Guangzhou Angang Steel Processing Co., Ltd. | Both belong to Ansteel Group |
Guangzhou Free Trade Zone Benxi Steel Sales Co., Ltd. | Same parent company |
Liaoning Hengtai Heavy Machinery Co., Ltd. | Same parent company |
Liaoning Hengyi Steel Trading Co., Ltd. | Both belong to Bensteel Group |
Liaoning Metallurgical Technician College | Same parent company |
Liaoning Vocational and Technical College of Metallurgy | Same parent company |
Pangang Group Xichang Steel and Vanadium Co., Ltd. | Both belong to Ansteel Group |
Panzhong Yihong Metal Products (Chongqing) Co., Ltd. | Both belong to Ansteel Group |
Suzhou Longben Metal Materials Co., Ltd. | Hold an equity interest in the company |
Tianjin Angang Steel Processing and Distribution Co., Ltd. | Both belong to Ansteel Group |
Tianjin Ansteel International North Trading Co., Ltd. | Both belong to Ansteel Group |
Wuhan Yuanhong Trading Co., Ltd. | Hold an equity interest in the company |
Changchun FAW Angang Steel Processing and Distribution Co., Ltd. | Both belong to Ansteel Group |
Ansteel Tendering Co., Ltd. | Both belong to Ansteel Group |
5. Situation of Related Party Transactions
(1) Related party transactions of purchasing or selling goods, rendering and
receiving servicesTable of purchase of goods/receiving of services
Related parties | Related transaction content | Amount in this period | Approved transaction amount (if applicable) | Whether the transaction limit is exceeded (if applicable) | Amount in previous period |
Ansteel Electric Co., Ltd. | Repair service | 261,249.99 | Not applicable | Not applicable | |
Ansteel Scrap Resources (Anshan) Co., Ltd. | Raw materials | 370,082,138.82 | 1,300,000,000.00 | No | 96,065,566.10 |
Ansteel Steel Processing and Distribution (Dalian) Co., Ltd. | Service fee | Not applicable | Not applicable | 11,353.84 | |
Ansteel Rope Co., Ltd. | Spare parts | 169,538.40 | 10,000,000.00 | No | |
Ansteel Co., Ltd. | Raw fuel | Not applicable | Not applicable | 75,504,413.81 | |
Ansteel Group | Spare parts | 872,000.00 | Not applicable | Not |
Related parties | Related transaction content | Amount in this period | Approved transaction amount (if applicable) | Whether the transaction limit is exceeded (if applicable) | Amount in previous period |
(Anshan) Railway Transportation Equipment Manufacturing Co., Ltd. | applicable | ||||
Ansteel Group Finance Co., Ltd. | Financial services | 303,708.86 | Not applicable | Not applicable | |
Ansteel Group Engineering Technology Co., Ltd. | Engineering design | 512,000.00 | Not applicable | Not applicable | |
Ansteel Group Engineering Technology Co., Ltd. | Construction and installation | 117,959,759.13 | 23,000,000.00 | No | |
Ansteel Group Engineering Technology Co., Ltd. | Equipment | 76,337,521.60 | Not applicable | Not applicable | |
Ansteel Group Engineering Technology Co., Ltd. | Repair service | 260,000.00 | Not applicable | Not applicable | |
Ansteel Group International Economic and Trade Co., Ltd. | Raw materials | Not applicable | Not applicable | 8,328,324.66 | |
Ansteel Group Mining Gongchangling Co., Ltd. | Raw materials | 200,408,297.44 | 500,000,000.00 | No | 238,405,486.63 |
Ansteel Group Automation Co., Ltd. | Software | 47,055,000.00 | 230,000,000.00 | No | |
Ansteel Construction Group Co., Ltd. | Project costs | Not applicable | Not applicable | 21,192,660.55 | |
Ansteel Technology Development Co., Ltd. | Research and development service | 633,962.27 | Not applicable | Not applicable | |
Ansteel Industrial Group (Anshan) Equipment Operation and Maintenance Co., Ltd. | Labor service | 3,253,333.20 | 10,000,000.00 | No | |
Ansteel Industrial Group Metallurgical Machinery Co., Ltd. | Repair service | 5,097,094.81 | Not applicable | Not applicable | 563,736.00 |
Angang Shuangsheng (Anshan) Fan Co., Ltd. | Spare parts | 69,000.00 | Not applicable | Not applicable | |
Ansteel Heavy Machinery Co., Ltd. | Repair service | 1,565,966.00 | Not applicable | Not applicable | |
North Hengda Logistics Co., Ltd. | Processing fee | 599,384.02 | Not applicable | Not applicable | |
North Hengda Logistics Co., Ltd. | Raw material | 942,680.16 | Not applicable | Not applicable | |
North Hengda Logistics Co., Ltd. | Transportation and storage Fees | 66,562,921.54 | 30,000,000.00 | Yes | 14,102,106.06 |
Related parties | Related transaction content | Amount in this period | Approved transaction amount (if applicable) | Whether the transaction limit is exceeded (if applicable) | Amount in previous period |
Bengang Electric Co., Ltd. | Spare parts | 53,735,396.26 | 200,000,000.00 | No | |
Bengang Electric Co., Ltd. | Repair service | 3,857,674.29 | Not applicable | Not applicable | |
Bengang Electric Co., Ltd. | Raw materials | Not applicable | Not applicable | 65,419,935.95 | |
Bensteel Group International Economic and Trade Co., Ltd. | Agency service | 32,464,379.89 | 200,000,000.00 | No | 133,605,645.86 |
Bensteel Group Co., Ltd. | Rental fees | 4,972,711.56 | 100,000,000.00 | No | 1,947,299.50 |
Benxi Beiying Iron and Steel (Group) Co., Ltd. | Inspection fees | 71,796.00 | Not applicable | Not applicable | |
Benxi Beiying Iron and Steel (Group) Co., Ltd. | Energy power | 329,215,977.30 | 800,000,000.00 | No | 354,632,805.17 |
Benxi Beiying Iron and Steel (Group) Co., Ltd. | Repair service | 2,163,383.85 | 100,000,000.00 | No | 46,977,784.13 |
Benxi Beiying Iron and Steel (Group) Co., Ltd. | Raw materials | 6,177,881,267.18 | 15,080,000,000.00 | No | 6,247,319,985.72 |
Benxi Beiying Iron and Steel (Group) Co., Ltd. | Rental fees | 5,979,849.05 | Not applicable | Not applicable | |
Benxi Iron and Steel (Group) Engineering Construction Supervision Co., Ltd. | Supervision fee | 836,573.63 | Not applicable | Not applicable | |
Benxi Iron and Steel (Group) Machinery Manufacturing Co., Ltd. | Spare parts | 29,846,785.48 | 120,000,000.00 | No | 23,012,269.46 |
Benxi Iron and Steel (Group) Machinery Manufacturing Co., Ltd. | Labor service | 4,456,401.89 | 80,000,000.00 | No | 38,577,078.16 |
Benxi Iron and Steel (Group) Machinery Manufacturing Co., Ltd. | Equipment fees | 8,487,520.00 | Not applicable | Not applicable | |
Benxi Iron and Steel (Group) Machinery Manufacturing Co., Ltd. | Raw materials | 2,940,750.95 | Not applicable | Not applicable | |
Benxi Iron and Steel (Group) Machinery Manufacturing Co., Ltd. | Rental fees | 16,578,454.81 | Not applicable | Not applicable | |
Benxi Iron and Steel (Group) Construction Co., Ltd. | Spare parts | 4,854,600.01 | Not applicable | Not applicable | 4,646,764.56 |
Benxi Iron and Steel (Group) Construction Co., Ltd. | Construction and installation | 184,925,593.15 | Not applicable | Not applicable | 90,638,976.00 |
Benxi Iron and Steel (Group) Construction Co., | Brokerage agent | 3,156,976.43 | Not applicable | Not applicable |
Related parties | Related transaction content | Amount in this period | Approved transaction amount (if applicable) | Whether the transaction limit is exceeded (if applicable) | Amount in previous period |
Ltd. | |||||
Benxi Iron and Steel (Group) Construction Co., Ltd. | Labor service | 9,511,440.90 | 585,000,000.00 | No | |
Benxi Iron and Steel (Group) Construction Co., Ltd. | Equipment fees | 48,514,680.00 | Not applicable | Not applicable | |
Benxi Iron and Steel (Group) Construction Co., Ltd. | Raw materials | 2,783,241.40 | Not applicable | Not applicable | 4,646,764.56 |
Benxi Iron and Steel (Group) Construction Co., Ltd. | Transportation service | 358,232.94 | Not applicable | Not applicable | |
Benxi Iron and Steel (Group) Mining Co., Ltd. | Service fee | Not applicable | Not applicable | 2,613,517.18 | |
Benxi Iron and Steel (Group) Mining Co., Ltd. | Raw materials | 1,981,592,292.78 | 8,950,000,000.00 | No | 3,510,974,470.81 |
Benxi Iron and Steel (Group) Thermal Power Development Co., Ltd. | Heating costs | 293,698.06 | Not applicable | Not applicable | 708,146.88 |
Benxi Iron and Steel (Group) Thermal Power Development Co., Ltd. | Raw materials | 142,424.64 | Not applicable | Not applicable | 35,759.46 |
Benxi Iron and Steel (Group) Equipment Engineering Co., Ltd. | Spare parts | 527,996.85 | Not applicable | Not applicable | |
Benxi Iron and Steel (Group) Equipment Engineering Co., Ltd. | Construction and installation | 52,248,696.53 | Not applicable | Not applicable | |
Benxi Iron and Steel (Group) Equipment Engineering Co., Ltd. | Labor service | 16,676,640.31 | Not applicable | Not applicable | 17,144,271.62 |
Benxi Iron and Steel (Group) Equipment Engineering Co., Ltd. | Equipment fees | 78,905,792.00 | Not applicable | Not applicable | |
Benxi Iron and Steel (Group) Equipment Engineering Co., Ltd. | Repair service | 33,669,653.98 | 100,000,000.00 | No | 5,748,486.32 |
Benxi Iron and Steel (Group) Equipment Engineering Co., Ltd. | Raw materials | 3,413,348.23 | Not applicable | Not applicable | 2,058,346.87 |
Benxi Iron and Steel (Group) Equipment Engineering Co., Ltd. | Transportation service | 562,115.92 | Not applicable | Not applicable | |
Benxi Iron and | Office | 293,726.74 | Not applicable | Not |
Related parties | Related transaction content | Amount in this period | Approved transaction amount (if applicable) | Whether the transaction limit is exceeded (if applicable) | Amount in previous period |
Steel (Group) Industrial Development Co., Ltd. | equipment | applicable | |||
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. | Construction and installation | 184,024.72 | Not applicable | Not applicable | |
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. | Labor service | 582,738.30 | Not applicable | Not applicable | |
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. | Daily necessities | 1,826,368.18 | Not applicable | Not applicable | |
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. | Repair service | 446,808.00 | Not applicable | Not applicable | 443,449.54 |
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. | Raw materials | 9,559,452.37 | 600,000,000.00 | No | 52,820,474.67 |
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. | Transportation service | 3,030,721.77 | Not applicable | Not applicable | |
Benxi Iron and Steel (Group) Information Automation Co., Ltd. | Spare parts | 16,818,802.44 | Not applicable | Not applicable | 4,990,030.05 |
Benxi Iron and Steel (Group) Information Automation Co., Ltd. | Construction and installation | 897,468.01 | Not applicable | Not applicable | 18,816,098.36 |
Benxi Iron and Steel (Group) Information Automation Co., Ltd. | Software | 58,674,627.61 | 100,000,000.00 | 否 | |
Benxi Iron and Steel (Group) Information Automation Co., Ltd. | Repair service | 548,300.00 | Not applicable | Not applicable | 910,634.86 |
Benxi Iron and Steel (Group) Metallurgical Slag Co., Ltd. | Raw materials | 123,153,136.39 | 300,000,000.00 | No | 139,381,388.64 |
Benxi Steel and Iron (Group) Co., Ltd. | Financial services | 1,406,819.97 | Not applicable | Not applicable | |
Benxi Steel and Iron (Group) Co., Ltd. | Energy power | 208,218.19 | Not applicable | Not applicable | |
Benxi Steel and Iron (Group) Co., Ltd. | Daily necessities | 2,602.04 | Not applicable | Not applicable | |
Benxi Steel and Iron (Group) Co., | Equipment inspection | 2,150,000.00 | Not applicable | Not applicable |
Related parties | Related transaction content | Amount in this period | Approved transaction amount (if applicable) | Whether the transaction limit is exceeded (if applicable) | Amount in previous period |
Ltd. | |||||
Benxi Steel and Iron (Group) Co., Ltd. | Repair service | 85,545,984.60 | 350,000,000.00 | No | 122,783,160.52 |
Benxi Steel and Iron (Group) Co., Ltd. | Raw materials | 221,106.88 | Not applicable | Not applicable | |
Benxi Steel and Iron (Group) Co., Ltd. | Transportation service | 70,844.04 | Not applicable | Not applicable | |
Benxi Steel and Iron (Group) Co., Ltd. | Rental fees | 35,687,852.59 | Not applicable | Not applicable | 30,187,267.22 |
Benxi High-tech Drilling Tools Manufacturing Co., Ltd. | Spare parts | Not applicable | Not applicable | 71,251.70 | |
Benxi New Business Development Co., Ltd. | Spare parts | 8,892.94 | Not applicable | Not applicable | |
Benxi New Business Development Co., Ltd. | Catering and accommodation | 608,112.36 | Not applicable | Not applicable | |
Benxi New Business Development Co., Ltd. | Daily necessities | 157,261.01 | Not applicable | Not applicable | |
Chengdu Pangang Hotel Co., Ltd. | Catering and accommodation | 937.74 | Not applicable | Not applicable | |
Dalian Borolle Steel Pipe Co., Ltd. | Raw materials | 599,495.23 | Not applicable | Not applicable | |
Delin Industrial Products Co., Ltd. | Office equipment | 682,715.44 | Not applicable | Not applicable | |
Delin Industrial Products Co., Ltd. | Spare parts | 14,447,322.53 | Not applicable | Not applicable | |
Delin Industrial Products Co., Ltd. | Raw materials | 8,538.92 | Not applicable | Not applicable | |
Liaoning Hengtai Heavy Machinery Co., Ltd. | Construction and installation | 1,044,084.00 | Not applicable | Not applicable | |
Liaoning Hengtai Heavy Machinery Co., Ltd. | Equipment | 12,130,000.00 | Not applicable | Not applicable | |
Liaoning Hengtai Heavy Machinery Co., Ltd. | Repair service | 25,586,655.43 | 50,000,000.00 | No | 3,363,187.60 |
Liaoning Hengtai Heavy Machinery Co., Ltd. | Raw materials | 619,327.43 | Not applicable | Not applicable | 1,158,044.41 |
Liaoning Hengtai Heavy Machinery Co., Ltd. | Transportation service | 35,137.61 | Not applicable | Not applicable | |
Liaoning Hengtong Metallurgical Equipment Manufacturing | Raw materials | Not applicable | Not applicable | 66,215,321.16 |
Related parties | Related transaction content | Amount in this period | Approved transaction amount (if applicable) | Whether the transaction limit is exceeded (if applicable) | Amount in previous period |
Co., Ltd. | |||||
Liaoning Metallurgical Technician College | Training fee | Not applicable | Not applicable | 580,509.17 |
Table for sale of goods/render of services
Related parties | Related transaction content | Amount in this period | Amount in previous period |
Angang Steel Processing and Distribution (Dalian) Co., Ltd. | Goods | 27,577,837.53 | |
Angang Steel Processing and Distribution (Changchun) Co., Ltd. | Goods | 2,003,478.27 | |
Angang Steel Processing and Distribution (Zhengzhou) Co., Ltd. | Goods | 10,433,394.39 | |
Angang Steel Distribution (Hefei) Co., Ltd. | Goods | 9,109,492.59 | |
Angang Steel Distribution (Wuhan) Co., Ltd. | Goods | 55,103,512.47 | |
Ansteel Co., Ltd. | Goods | 94,339.62 | 33,602,226.06 |
Ansteel Chemical Technology Co., Ltd. | Goods | 46,858,532.33 | 85,184,242.50 |
Ansteel Group Mining Co., Ltd. | Goods | 6,415.09 | |
Ansteel Construction Group Co., Ltd. | Energy power | 24,962.53 | |
Ansteel Green Resources Technology Co., Ltd. | Goods | 8,928,632.16 | 14,016,402.04 |
Ansteel Green Resources Technology Co., Ltd. | Raw materials and spare parts | 70,586,829.06 | |
Ansteel Energy Technology Co., Ltd. | Raw materials and spare parts | 97,132.19 | |
Ansteel Energy Technology Co., Ltd. | Energy power | 7,772,270.08 | |
Ansteel Cast Steel Co., Ltd. | Goods | 87,707.40 | |
North Hengda Logistics Co., Ltd. | Goods | 1,646,632,183.35 | 732,332,869.53 |
Bengang Electric Co., Ltd. | Energy power | 2,966,904.10 | |
Bensteel Gaoyuan Industrial Development Co., Ltd. | Goods | 611.32 | |
Bensteel Group Finance Co., Ltd. | Energy power | 6,024.27 | |
Bensteel Group International Economic and Trade Co., Ltd. | Goods | 3,566,927,893.44 | |
Bengang Group Co., Ltd. | Energy power | 101,729.51 | 54,228.93 |
Benxi North Steel Pipe Co., Ltd. | Energy power | 8,456.61 | |
Benxi Northern Iron Industry Co., Ltd. | Goods | 11,065,842.59 | 341,033,255.96 |
Benxi Beiying Iron and Steel (Group) Co., Ltd. | Goods | 3,951,328.22 | 7,805,748.05 |
Benxi Beiying Iron and Steel (Group) Co., Ltd. | Raw materials and spare parts | 84,897,746.67 | 404,510,783.18 |
Benxi Beiying Iron and Steel (Group) Co., Ltd. | Energy power | 33,632,066.23 | 36,045,489.04 |
Benxi Dongfeng Lake Steel Resources Utilization Co., Ltd. | Goods | 14,111,556.08 | 11,652,917.70 |
Related parties | Related transaction content | Amount in this period | Amount in previous period |
Benxi Dongfeng Lake Steel Resources Utilization Co., Ltd. | Energy power | 2,482,745.43 | 3,170,242.42 |
Benxi Iron and Steel (Group) Real Estate Development Co., Ltd. | Energy power | 40,312.15 | |
Benxi Iron and Steel (Group) Information Automation Co., Ltd. | Energy power | 78,150.86 | |
Benxi Iron and Steel (Group) Real Estate Development Co., Ltd. | Energy power | 60,649.99 | |
Benxi Iron and Steel (Group) Engineering Construction Supervision Co., Ltd. | Energy power | 1,208.43 | |
Benxi Iron and Steel (Group) Electromechanical Installation Engineering Co., Ltd. | Energy power | 272,525.36 | |
Benxi Iron and Steel (Group) Machinery Manufacturing Co., Ltd. | Goods | 116,745.28 | 10,523,900.28 |
Benxi Iron and Steel (Group) Machinery Manufacturing Co., Ltd. | Energy power | 6,405,245.79 | 10,883,794.65 |
Benxi Iron and Steel (Group) Construction Advanced Decoration Co., Ltd. | Energy power | 527.01 | |
Benxi Iron and Steel (Group) Construction Co., Ltd. | Energy power | 3,330,406.11 | 7,783,309.92 |
Benxi Iron and Steel (Group) Mine Construction Engineering Co., Ltd. | Energy power | 425,543.04 | |
Benxi Iron and Steel (Group) Mining Liaoyang Jiajiabao Iron Mine Co., Ltd. | Goods | 4,753.02 | |
Benxi Iron and Steel (Group) Mining Liaoyang Jiajiabao Iron Mine Co., Ltd. | Energy power | 54,895,941.41 | |
Benxi Iron and Steel (Group) Mining Yanjiagou Limestone Mine Co., Ltd. | Energy power | 2,017,672.71 | |
Benxi Iron and Steel (Group) Mining Co., Ltd. | Goods | 2,357,654.90 | 1,298,986.47 |
Benxi Iron and Steel (Group) Mining Co., Ltd. | Raw materials and spare parts | 35,299,728.81 | 67,380,113.36 |
Freight income | 391,007.89 | 4,717,137.94 | |
Benxi Iron and Steel (Group) Mining Co., Ltd. | Energy power | 373,480,762.43 | 368,746,319.95 |
Benxi Iron and Steel (Group) Road and Bridge Construction Engineering Co., Ltd. | Goods | 4,695.28 | |
Benxi Iron and Steel (Group) Thermal Power Development Co., Ltd. | Raw materials and spare parts | 20,195,062.17 | 13,425,740.25 |
Benxi Iron and Steel (Group) Thermal Power Development Co., Ltd. | Energy power | 14,367,856.89 | 17,198,224.54 |
Benxi Iron and Steel (Group) Equipment Engineering Co., Ltd. | Energy power | 650,778.47 | |
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. | Energy power | 1,490,023.36 | 1,312,651.56 |
Benxi Iron and Steel (Group) Information Automation Co., Ltd. | Energy power | 118,042.75 | |
Benxi Iron and Steel (Group) Construction Co., | Energy power | 508,442.14 |
Related parties | Related transaction content | Amount in this period | Amount in previous period |
Ltd. | |||
Benxi Iron and Steel (Group) Metallurgical Slag Co., Ltd. | Goods | 49,114,278.31 | 81,209,016.00 |
Benxi Iron and Steel (Group) Metallurgical Slag Co., Ltd. | Raw materials and spare parts | 1,606.35 | 6,434,506.40 |
Benxi Iron and Steel (Group) Metallurgical Slag Co., Ltd. | Energy power | 3,203,925.07 | 2,923,049.91 |
Benxi Steel and Iron (Group) Co., Ltd. | Raw materials and spare parts | 479,091.24 | 2,815,485.28 |
Benxi Steel and Iron (Group) Co., Ltd. | Energy power | 1,769,725.68 | 1,830,219.24 |
Benxi Well Surfacing Manufacturing Co., Ltd. | Energy power | 17,115.96 | 23,434.19 |
Benxi New Business Development Co., Ltd. | Goods | 2,330.66 | |
Benxi New Business Development Co., Ltd. | Energy power | 24,362.71 | 56,559.67 |
Dalian Borolle Steel Pipe Co., Ltd. | Goods | 7,978,875.12 | 10,411,580.55 |
Freight income | 3,396.23 | ||
Delin Lugang Supply Chain Service Co., Ltd. | Goods | 162,901,409.17 | |
Guangzhou Angang Steel Processing Co., Ltd. | Goods | 10,131,627.29 | |
Liaoning Hengtai Heavy Machinery Co., Ltd. | Goods | 8,451.93 | |
Liaoning Hengtai Heavy Machinery Co., Ltd. | Energy power | 130.66 | 59,737.59 |
Liaoning Hengtong Metallurgical Equipment Manufacturing Co., Ltd. | Goods | 16,460,796.56 | 16,247,225.07 |
Liaoning Hengtong Metallurgical Equipment Manufacturing Co., Ltd. | Raw materials and spare parts | 2,432,735.65 | |
Liaoning Slag Powder Co., Ltd. | Goods | 30,084,672.83 | |
Liaoning Tianyu Fire Engineering Co., Ltd. | Energy power | 27,076.31 | |
Pangang Group Jiangyou Great Wall Special Steel Co., Ltd. | Goods | 1,542,012.35 | |
Panzhong Yihong Metal Products (Chongqing) Co., Ltd. | Goods | 8,131,733.60 | |
Suzhou Bengang Industrial Co., Ltd. | Goods | 1,706,801.34 | |
Tianjin Angang Steel Processing and Distribution Co., Ltd. | Goods | 539,449.69 | |
Tianjin Ansteel International North Trading Co., Ltd. | Goods | 249,512,844.48 | |
Changchun FAW Angang Steel Processing and Distribution Co., Ltd. | Goods | 99,910.50 | 9,458,338.35 |
(2) Situation of related party lease
The Company as lessor:
Lessee name | Types of leased assets | Lease income recognized in the current period | Lease income recognized in the previous period |
Lessee name | Types of leased assets | Lease income recognized in the current period | Lease income recognized in the previous period |
Bengang Tendering Co., Ltd. | Plant and ancillary equipment | 250,917.43 |
The Company as lessee:
Lessor name | Types of leased assets | Amount in this period | Amount in previous period | ||||||||
Simplified treatment of rental expenses for short-term leases and leases of low-value assets | Variable lease payments not included in the measurement of the lease liability | Rent paid | Interest expense on lease liability assumed | Increased right-of-use assets | Simplified treatment of rental expenses for short-term leases and leases of low-value assets | Variable lease payments not included in the measurement of the lease liability | Rent paid | Interest expense on lease liability assumed | Increased right-of-use assets | ||
Benxi Steel and Iron (Group) Co., Ltd. | 7,669,068.17 square meters of land use rights, 42,920.00 square meters of land use rights | 27,627,809.26 | 19,750,096.20 | 27,625,616.70 | 19,500,054.00 | ||||||
Benxi Steel and Iron (Group) Co., Ltd. | 2300 Hot rolling mill production line, related real estate | 8,049,080.53 | 3,736,932.14 | 8,049,080.53 | 3,870,344.33 | ||||||
Benxi Beiying Iron and Steel (Group) Co., Ltd. | 1780 Hot rolling mill production line, related real estate | 7,557,730.91 | 2,877,975.14 | 6,198,949.54 | 2,980,721.72 |
Lessor name | Types of leased assets | Amount in this period | Amount in previous period | ||||||||
Simplified treatment of rental expenses for short-term leases and leases of low-value assets | Variable lease payments not included in the measurement of the lease liability | Rent paid | Interest expense on lease liability assumed | Increased right-of-use assets | Simplified treatment of rental expenses for short-term leases and leases of low-value assets | Variable lease payments not included in the measurement of the lease liability | Rent paid | Interest expense on lease liability assumed | Increased right-of-use assets | ||
Bengang Group Co., Ltd. | Land use right 728,282.30 square meters | 4,972,711.54 | 1,315,378.20 | 4,972,711.54 | 1,224,959.39 |
Description of related party leases:
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 yuanper square meter. The leased land is 7,669,068.17 square meters and the annual rent is RMB 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 leasedthe houses and auxiliary facilities occupied by the 2300 hot rolling mill production line and the 1780 hot rolling mill production line. The lease term ofthe houses and ancillary facilities is until December 31, 2038.
3) On July 15, 2019, the Company signed “Land Lease Agreement” with Bensteel Group and Bengang Steel (Group) respectively, leased and used atotal of 8 pieces of land from Bensteel Group and Bensteel Group Company, with leased areas of 42,920.00 square meters and 728,282.30 squaremeters. The lease term is 20 years, the rental price is RMB 1.138 yuan per square meter per month.
6. Receivables and Payable from Related Parties
(1) Receivables from related parties
Project name | Related parties | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||
Book balance | Bad debt provision | Book balance | Bad debt provision | ||
Notes receivable | |||||
Benxi Iron and Steel (Group) Machinery Manufacturing Co., Ltd. | 294,500.00 | ||||
Benxi Iron and Steel (Group) Construction Co., Ltd. | 940,100.00 | ||||
Benxi Beiying Iron and Steel (Group) Co., Ltd. | 3,100,000.00 | ||||
Benxi Iron and Steel (Group) Mining Co., Ltd. | 5,518,976.33 | ||||
Ansteel Roll Co., Ltd. | 200,000.00 | ||||
Ansteel Heavy Machinery Co., Ltd. | 189,621.75 | ||||
Pangang Group Xichang Steel and Vanadium Co., Ltd. | 30,000,000.00 | ||||
Pangang Group Panzhihua Steel Vanadium Co., Ltd. | 5,000,000.00 | ||||
Accounts receivable financing | |||||
North Hengda Logistics Co., Ltd. | 1,370,000.00 | ||||
Benxi Beiying Iron and Steel (Group) Co., Ltd. | 1,170,132.15 | ||||
Benxi Iron and Steel (Group) Machinery Manufacturing Co., Ltd. | 2,108,116.44 | ||||
Benxi Iron and Steel (Group) Construction Co., Ltd. | 330,000.00 | ||||
Benxi Steel and Iron (Group) Co., Ltd. | 755,842.13 | ||||
Dalian Borolle Steel Pipe Co., Ltd. | 200,000.00 | ||||
Liaoning Hengtong Metallurgical Equipment Manufacturing Co., Ltd. | 1,200,000.00 | ||||
Benxi Iron and Steel (Group) Mining Co., Ltd. | 500,000.00 | ||||
Accounts receivable | |||||
Angang Steel Processing and Distribution (Dalian) Co., Ltd. | 19,636,110.01 | 196,361.10 | |||
Angang Steel Processing and Distribution (Zhengzhou) Co., Ltd. | 1,759,216.34 | 17,592.16 | 4,477,814.06 | 44,778.14 | |
Angang Steel Distribution (Hefei) Co., Ltd. | 1,575,359.32 | 15,753.59 | 248,775.35 | 2,487.75 | |
Angang Steel Distribution (Wuhan) Co., Ltd. | 9,609,762.44 | 96,097.62 | 8,113,115.19 | 81,131.15 | |
Ansteel Co., Ltd. | 30,314,005.82 | 303,140.06 | |||
Ansteel Green Resources Technology Co., Ltd. | 2,218,608.01 | 22,186.08 | 4,667,550.15 | 46,675.50 | |
Ansteel Energy Technology Co., Ltd. | 742,072.08 | 7,420.72 |
Project name | Related parties | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||
Book balance | Bad debt provision | Book balance | Bad debt provision | ||
Bensteel Gaoyuan Industrial Development Co., Ltd. | 648.00 | ||||
Bensteel Group International Economic and Trade Co., Ltd. | 828,337,954.80 | 8,283,379.55 | 663,311,074.79 | 6,633,110.75 | |
Bengang Group Co., Ltd. | 17,036.30 | ||||
Benxi Northern Iron Industry Co., Ltd. | 3,655,505.09 | 36,555.05 | |||
Benxi Beiying Iron and Steel (Group) Co., Ltd. | 132,650,454.66 | 1,326,504.55 | |||
Benxi Iron and Steel (Group) Real Estate Development Co., Ltd. | 1,157,124.62 | 975,449.31 | |||
Benxi Iron and Steel (Group) Machinery Manufacturing Co., Ltd. | 186,041,227.34 | 1,860,412.27 | |||
Benxi Iron and Steel (Group) Construction Advanced Decoration Co., Ltd. | 808.72 | 8.09 | |||
Benxi Iron and Steel (Group) Construction Co., Ltd. | 40,272,376.48 | 932,849.76 | |||
Benxi Iron and Steel (Group) Mine Construction Engineering Co., Ltd. | 5,099,269.05 | 50,992.69 | |||
Benxi Iron and Steel (Group) Mining Yanjiagou Limestone Mine Co., Ltd. | 777,713.41 | 7,777.13 | |||
Benxi Iron and Steel (Group) Mining Co., Ltd. | 144,284,531.52 | 1,442,845.32 | 44,914,278.63 | 449,142.79 | |
Benxi Iron and Steel (Group) Road and Bridge Construction Engineering Co., Ltd. | 1,772,553.54 | 334,490.54 | |||
Benxi Iron and Steel (Group) Thermal Power Development Co., Ltd. | 17,373,796.70 | 173,737.97 | 840,398.67 | 8,403.99 | |
Benxi Iron and Steel (Group) Equipment Engineering Co., Ltd. | 1,348,327.24 | 13,483.27 | |||
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. | 16,573,242.31 | 13,860,703.41 | |||
Benxi Iron and Steel (Group) Information Automation Co., Ltd. | 23,016.93 | 230.17 | |||
Benxi Iron and Steel (Group) Metallurgical Slag Co., Ltd. | 7,437,743.49 | 74,377.43 | |||
Benxi Steel and Iron (Group) Co., Ltd. | 22,529,365.14 | 225,293.65 | |||
Benxi Weier Surfacing Manufacturing Co., Ltd. | 188,119.71 | 10,591.31 | |||
Benxi New Business Development Co., Ltd. | 50,257.41 | 502.57 | |||
Liaoning Hengtong Metallurgical Equipment Manufacturing Co., Ltd. | 1,850,333.39 | 18,503.33 | 144,307.22 | 1,443.07 | |
Bengang Electric Co., Ltd. | 142,269.51 | 1,422.70 | |||
Prepayments | |||||
Ansteel Co., Ltd. | 489,219.01 | ||||
North Hengda Logistics Co., Ltd. | 121,074.27 | ||||
Bensteel Group International Economic and Trade Co., Ltd. | 104,332,332.83 | 398,341,075.41 |
Project name | Related parties | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||
Book balance | Bad debt provision | Book balance | Bad debt provision | ||
Benxi Beiying Iron and Steel Group Import and Export Co., Ltd. | 894,762.41 | ||||
Benxi Iron and Steel (Group) Machinery Manufacturing Co., Ltd. | 49,429,296.57 | ||||
Benxi Steel and Iron (Group) Co., Ltd. | 24,076,357.53 | ||||
Liaoning Hengtai Heavy Machinery Co., Ltd. | 13,619,388.23 | ||||
Benxi New Business Development Co., Ltd. | 2,324,912.22 | ||||
Other receivables | |||||
Ansteel Co., Ltd. | 45,559.67 | 45,559.67 | 421,142.66 | 421,142.66 | |
North Hengda Logistics Co., Ltd. | 5,000.00 | 50.00 | 65,563.55 | ||
Bensteel Group International Economic and Trade Co., Ltd. | 2,204,289.89 | 28,594.24 | 6,617.52 | ||
Benxi Dongfeng Lake Steel Resources Utilization Co., Ltd. | 3,367,748.44 | 33,677.48 | |||
Benxi Iron and Steel (Group) Machinery Manufacturing Co., Ltd. | 1,061,981.67 | 827,808.58 | |||
Benxi Iron and Steel (Group) Construction Co., Ltd. | 250,679.61 | 250,679.61 | 13,028,492.10 | 433,910.93 | |
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. | 542,141.50 | 114,818.03 | |||
Benxi Steel and Iron (Group) Co., Ltd. | 9,674,663.19 | 4,584,322.38 | |||
Benxi New Business Development Co., Ltd. Hot Spring Sanatorium | 2,280,942.73 | 456,188.55 | |||
Benxi Iron and Steel (Group) Real Estate Development Co., Ltd. | 1,097,290.88 | 991,268.28 | |||
Ansteel Heavy Machinery Design and Research Institute Co., Ltd. | 5,176,720.00 | 51,767.20 | |||
Benxi Iron and Steel (Group) Mining Co., Ltd. | 1,193,997.66 | 11,939.98 | |||
Benxi Iron and Steel (Group) Equipment Engineering Co., Ltd. | 4,760,949.45 | 47,609.49 | |||
Liaoning Hengtong Metallurgical Equipment Manufacturing Co., Ltd. | 4,249,698.29 | 42,496.98 | |||
Bengang Electric Co., Ltd. | 36,455.28 | 364.55 | |||
Ansteel Group Engineering Technology Co., Ltd. | 73,908.67 | 739.09 | |||
Other non-current assets | |||||
Ansteel Group Engineering Technology Co., Ltd. | 83,071,228.82 | ||||
Ansteel Construction Group Co., Ltd. | 16,254,830.53 | 132,687.84 | |||
Ansteel Heavy Machinery Design and Research Institute Co., Ltd. | 5,176,720.00 | ||||
Benxi Iron and Steel (Group) Machinery | 4,176.00 |
Project name | Related parties | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||
Book balance | Bad debt provision | Book balance | Bad debt provision | ||
Manufacturing Co., Ltd. | |||||
Benxi Iron and Steel (Group) Construction Co., Ltd. | 33,175,372.34 | ||||
Benxi Iron and Steel (Group) Mine Construction Engineering Co., Ltd. | 4,193,364.46 | ||||
Benxi Iron and Steel (Group) Equipment Engineering Co., Ltd. | 46,123,888.51 | ||||
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. | 833,139.38 | ||||
Benxi Iron and Steel (Group) Information Automation Co., Ltd. | 7,175,371.14 | ||||
Liaoning Hengtai Heavy Machinery Co., Ltd. | 225,977.40 |
(2) Payables from related parties
Items | Related parties | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Notes payable | |||
Ansteel Electric Co., Ltd. | 494,065.00 | ||
Ansteel Rope Co., Ltd. | 894,924.67 | ||
Ansteel Group (Anshan) Railway Transportation Equipment Manufacturing Co., Ltd. | 611,999.91 | ||
Ansteel Industrial Group Metallurgical Machinery Co., Ltd. | 5,098,946.77 | 572,213.92 | |
Angang Shuangsheng (Anshan) Fan Co., Ltd. | 168,370.00 | ||
Ansteel Heavy Machinery Co., Ltd. | 4,102,837.35 | 745,501.68 | |
Anshan Iron and Steel Metallurgical Furnace Materials Technology Co., Ltd. | 1,011,012.83 | ||
Bensteel Gaoyuan Industrial Development Co., Ltd. | 341,547.50 | ||
Benxi Aike Hydraulic Seal Co., Ltd. | 4,017,931.36 | ||
Benxi Beiying Iron and Steel (Group) Co., Ltd. | 3,544,400,000.00 | 659,999,999.00 | |
Benxi Dongfeng Lake Steel Resources Utilization Co., Ltd. | 28,021,980.30 | ||
Benxi Iron and Steel (Group) International Trade Tengda Co., Ltd. | 201,007,087.52 | ||
Benxi Iron and Steel (Group) Electromechanical Installation Engineering Co., Ltd. | 4,034,726.24 | ||
Benxi Iron and Steel (Group) Machinery Manufacturing Co., Ltd. | 55,093,250.74 | 41,781,569.75 | |
Benxi Iron and Steel (Group) Construction Co., Ltd. | 352,395.99 | 3,789,095.21 | |
Benxi Iron and Steel (Group) Mine Construction Engineering Co., Ltd. | 595,773.93 |
Items | Related parties | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Benxi Iron and Steel (Group) Mining Co., Ltd. | 666,877,903.00 | 151,930,597.68 | |
Benxi Iron and Steel (Group) Equipment Engineering Co., Ltd. | 949,553.06 | 1,611,555.04 | |
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. | 24,812,439.34 | ||
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. Recycling Branch | 1,127,635.91 | ||
Benxi Iron and Steel (Group) Information Automation Co., Ltd. | 163,107.15 | 1,150,225.42 | |
Benxi Iron and Steel (Group) Metallurgical Slag Co., Ltd. | 19,731,837.68 | 10,866,603.68 | |
Benxi Steel and Iron (Group) Co., Ltd. | 915,300.00 | 361,277.52 | |
Benxi Xihu Metallurgical Charge Co., Ltd. | 100,964,915.60 | ||
Dalian Borolle Steel Pipe Co., Ltd. | 472,187.26 | ||
Liaoning Hengtai Heavy Machinery Co., Ltd. | 6,761,265.63 | 2,877,574.99 | |
Liaoning Hengtong Metallurgical Equipment Manufacturing Co., Ltd. | 80,188,977.92 | 34,223,234.99 | |
Liaoning Hengyi Financial Leasing Co., Ltd. | 9,104.14 | ||
Liaoning Yitong Machinery Manufacturing Co., Ltd. | 11,496,157.32 | ||
Bensteel Group International Economic and Trade Co., Ltd. | 82,782,219.21 | ||
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. | 10,191,802.55 | ||
Liaoning Vocational and Technical College of Metallurgy | 528,854.07 | ||
Bengang Electric Co., Ltd. | 25,016,176.00 | ||
Ansteel Group Mining Co., Ltd. | 79,210,057.06 | ||
Ansteel Technology Development Co., Ltd. | 39,644.00 | ||
Ansteel Heavy Machinery Design and Research Institute Co., Ltd. | 6,827,200.00 | ||
North Hengda Logistics Co., Ltd. | 11,350.04 | ||
Liaoning Hengyi Steel Trading Co., Ltd. | 8,941,086.81 | ||
Accounts payable | |||
Ansteel Electric Co., Ltd. | 324,789.48 | ||
Ansteel Scrap Resources (Anshan) Co., Ltd. | 95,508,032.52 | 52,203,765.63 | |
Angang Steel Processing and Distribution (Changchun) Co., Ltd. | 81,119.58 | ||
Ansteel Rope Co., Ltd. | 191,578.40 | 894,924.67 | |
Ansteel Group (Anshan) Railway Transportation Equipment Manufacturing Co., Ltd. | 985,360.00 | 577,232.81 | |
Ansteel Group International Economic and Trade Co., Ltd. | 16,733,519.12 | ||
Ansteel Group Mining Gongchangling Co., Ltd. | 117,603,581.10 | ||
Ansteel Group Mining Co., Ltd. | 591,193.88 | 591,193.88 | |
Ansteel Construction Group Co., Ltd. | 8,527.00 |
Items | Related parties | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Ansteel Technology Development Co., Ltd. | 140,000.00 | ||
Ansteel Industrial Group (Anshan) Equipment Operation and Maintenance Co., Ltd. | 2,228,028.59 | ||
Ansteel Industrial Group Metallurgical Machinery Co., Ltd. | 3,197,220.37 | 2,265,928.00 | |
Angang Shuangsheng (Anshan) Fan Co., Ltd. | 77,970.00 | 168,370.00 | |
Ansteel Heavy Machinery Co., Ltd. | 3,398,533.80 | 2,873,047.05 | |
Anshan Iron and Steel Metallurgical Furnace Materials Technology Co., Ltd. | 1,466,444.82 | ||
North Hengda Logistics Co., Ltd. | 25,435,334.70 | ||
Bengang Stainless Steel Cold Rolling Dandong Co., Ltd. | 102,005.30 | ||
Bensteel Gaoyuan Industrial Development Co., Ltd. | 1,281,746.64 | ||
Bensteel Group International Economic and Trade Co., Ltd. | 51,306,166.70 | ||
Bengang Group Co., Ltd. | 4,688,315.28 | 50,000.00 | |
Benxi Aike Hydraulic Seal Co., Ltd. | 3,207,003.01 | ||
Benxi Northern Iron Industry Co., Ltd. | 149,204,699.40 | ||
Benxi Beiying Iron and Steel (Group) Co., Ltd. | 448,104,637.52 | 131,248,293.37 | |
Benxi Dongfeng Lake Steel Resources Utilization Co., Ltd. | 18,999,688.27 | ||
Benxi Iron and Steel (Group) Real Estate Development Co., Ltd. | 372,520.06 | 372,520.06 | |
Benxi Iron and Steel (Group) International Trade Tengda Co., Ltd. | 65,147,129.15 | ||
Benxi Iron and Steel (Group) Machinery Manufacturing Co., Ltd. | 73,536,470.40 | 2,874,934.49 | |
Benxi Iron and Steel (Group) Construction Advanced Decoration Co., Ltd. | 397,711.62 | ||
Benxi Iron and Steel (Group) Construction Co., Ltd. | 9,471,479.60 | 240,928,491.19 | |
Benxi Iron and Steel (Group) Mine Construction Engineering Co., Ltd. | 5,704,240.75 | ||
Benxi Iron and Steel (Group) Mining Co., Ltd. | 160,936,135.74 | 45,768,605.27 | |
Benxi Iron and Steel (Group) Road and Bridge Construction Engineering Co., Ltd. | 791,935.13 | ||
Benxi Iron and Steel (Group) Thermal Power Development Co., Ltd. | 100,889.78 | 413,463.33 | |
Benxi Iron and Steel (Group) Equipment Engineering Co., Ltd. | 56,006,170.72 | 87,111,368.27 | |
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. | 25,748,822.56 | 75,043,780.30 | |
Benxi Iron and Steel (Group) Information Automation Co., Ltd. | 13,453,191.94 | 88,684,293.06 | |
Benxi Iron and Steel (Group) Metallurgical Slag Co., Ltd. | 47,009,411.99 | 47,468,411.05 |
Items | Related parties | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Benxi Steel and Iron (Group) Co., Ltd. | 39,872,070.78 | ||
Benxi Iron and Steel (Group) Mining Liaoyang Maling Pellet Co., Ltd. | 116,207,873.93 | ||
Benxi Meter & Control Electronic Instrument Industry Co., Ltd. | 28,802.83 | ||
Benxi Xihu Metallurgical Charge Co., Ltd. | 20,313,571.32 | ||
Benxi Well Surfacing Manufacturing Co., Ltd. | 234,112.13 | ||
Freight income | 57,637.09 | 18,937.09 | |
Dalian Borolle Steel Pipe Co., Ltd. | 450,952.17 | ||
Delin Industrial Products Co., Ltd. | 34,853,190.84 | 9,556,739.82 | |
Liaoning Hengtai Heavy Machinery Co., Ltd. | 14,627,776.85 | ||
Liaoning Hengtong Metallurgical Equipment Manufacturing Co., Ltd. | 15,943,904.64 | 30,626,084.39 | |
Liaoning Tianyu Fire Engineering Co., Ltd. | |||
Liaoning Metallurgical Technician College | 10,107,863.07 | ||
Liaoning Vocational and Technical College of Metallurgy | 48,048.00 | 513,779.95 | |
Liaoning Yitong Machinery Manufacturing Co., Ltd. | 3,037,287.88 | ||
Tianjin Bengang Plate Processing and Distribution Co., Ltd. | 223,096.00 | ||
Bengang Electric Co., Ltd. | 1,893,516.67 | ||
Benxi High-tech Drilling Tools Manufacturing Co., Ltd. | 14,400.16 | ||
Contract liabilities | |||
Angang Steel Processing and Distribution (Dalian) Co., Ltd. | 26,248.21 | 2,468,274.66 | |
Angang Steel Processing and Distribution (Changchun) Co., Ltd. | 433,765.38 | 695,012.13 | |
Angang Steel Distribution (Hefei) Co., Ltd. | 3,122,010.92 | 4,731,954.99 | |
Ansteel Co., Ltd. | 930,287.84 | ||
Ansteel Chemical Technology Co., Ltd. | 4,381,585.23 | 3,631,726.76 | |
Ansteel Energy Technology Co., Ltd. | 12,048.13 | ||
North Hengda Logistics Co., Ltd. | 118,994,396.13 | 53,109,140.37 | |
Benxi Dongfeng Lake Steel Resources Utilization Co., Ltd. | 1,035,901.39 | ||
Benxi Iron and Steel (Group) Construction Co., Ltd. | 5,898.81 | ||
Benxi Iron and Steel (Group) Mining Mineral Resources Development Co., Ltd. | 90,019.77 | ||
Benxi Iron and Steel (Group) Mining Liaoyang Jiajiabao Iron Mine Co., Ltd. | 40,057,730.41 | ||
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. | 357,907.98 | 535,124.96 | |
Benxi Iron and Steel (Group) Metallurgical Slag Co., Ltd. | 1,044,047.73 |
Items | Related parties | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Benxi Iron and Steel (Group) Mining Co., Ltd. | 1,450,610.94 | ||
Benxi Iron and Steel (Group) Mining Liaoyang Maling Pellet Co., Ltd. | 2,970,163.60 | ||
Benxi Xihu Metallurgical Charge Co., Ltd. | 20,000.00 | ||
Dalian Borolle Steel Pipe Co., Ltd. | 1,647,687.00 | 1,776,832.88 | |
Delin Lugang Supply Chain Service Co., Ltd. | 47,447,914.81 | 14,902,176.11 | |
Guangzhou Angang Steel Processing Co., Ltd. | 1,598,818.30 | 644,213.74 | |
Liaoning Hengtong Metallurgical Equipment Manufacturing Co., Ltd. | 40,540.25 | ||
Liaoning Vocational and Technical College of Metallurgy | 0.01 | ||
Pangang Group Jiangyou Great Wall Special Steel Co., Ltd. | 776,933.91 | ||
Tianjin Angang Steel Processing and Distribution Co., Ltd. | 95,477.46 | ||
Tianjin Ansteel International North Trading Co., Ltd. | 54,050,485.38 | 32,000,000.00 | |
Changchun FAW Angang Steel Processing and Distribution Co., Ltd. | 132,535.72 | 69,561.39 | |
Zhejiang Jingrui Steel Processing Co., Ltd. | 80,484,269.96 | ||
Wuhan Yuanhong Trading Co., Ltd. | 4,736,783.67 | ||
Other payables | |||
Ansteel Scrap Resources (Anshan) Co., Ltd. | 1,000,000.00 | 1,000,000.00 | |
Ansteel Group Automation Co., Ltd. | 29,869,230.00 | 3,565,330.00 | |
Ansteel Construction Group Co., Ltd. | 607,805.64 | 5,389,177.00 | |
Ansteel Metal Structure Co., Ltd. | 10,000.00 | 10,000.00 | |
Ansteel Technology Development Co., Ltd. | 345,269.90 | ||
Ansteel Industrial Group (Anshan) Equipment Operation and Maintenance Co., Ltd. | 4,101,254.08 | ||
Bensteel Gaoyuan Industrial Development Co., Ltd. | 2,280,175.76 | ||
Bensteel Group International Economic and Trade Co., Ltd. | 37,172,569.99 | 11,894,493.16 | |
Bengang Group Co., Ltd. | 903,375.93 | 7,716,476.47 | |
Benxi Aike Hydraulic Seal Co., Ltd. | 10,000.00 | ||
Benxi Beiying Iron and Steel (Group) Co., Ltd. | 20,777,431.47 | ||
Benxi Dongfeng Lake Steel Resources Utilization Co., Ltd. | 210,000.00 | ||
Benxi Iron and Steel (Group) Real Estate Development Co., Ltd. | 510,910.37 | 510,910.37 | |
Benxi Iron and Steel (Group) Engineering Construction Supervision Co., Ltd. | 1,413,282.10 | 1,523,543.12 | |
Benxi Iron and Steel (Group) International Trade Tengda Co., Ltd. | 65,212.55 | ||
Benxi Iron and Steel (Group) Machinery Manufacturing Co., Ltd. | 24,458,712.03 | 1,681,991.53 |
Items | Related parties | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Benxi Iron and Steel (Group) Inspection and Testing Co., Ltd. | 190,140.00 | ||
Benxi Iron and Steel (Group) Construction Advanced Decoration Co., Ltd. | 2,386,190.08 | ||
Benxi Iron and Steel (Group) Construction Co., Ltd. | 215,351,886.72 | 53,547,549.48 | |
Benxi Iron and Steel (Group) Mine Construction Engineering Co., Ltd. | 23,651,293.09 | ||
Benxi Iron and Steel (Group) Road and Bridge Construction Engineering Co., Ltd. | 10,619,579.34 | ||
Benxi Iron and Steel (Group) Thermal Power Development Co., Ltd. | 846,078.80 | 2,129,446.86 | |
Benxi Iron and Steel (Group) Equipment Engineering Co., Ltd. | 155,059,385.61 | 1,089,595.17 | |
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. | 4,324,889.25 | 1,259,239.61 | |
Benxi Iron and Steel (Group) Information Automation Co., Ltd. | 82,094,205.42 | 2,881,047.50 | |
Benxi Steel and Iron (Group) Co., Ltd. | 24,481,244.88 | 81,104,935.20 | |
Benxi Xihu Metallurgical Charge Co., Ltd. | 100,000.00 | ||
Benxi New Business Development Co., Ltd. | 23,157,491.13 | 33,755,860.72 | |
Dalian Borolle Steel Pipe Co., Ltd. | 20,000.00 | 20,000.00 | |
Liaoning Hengtai Heavy Machinery Co., Ltd. | 4,996,287.37 | 22,000,196.88 | |
Liaoning Hengtong Metallurgical Equipment Manufacturing Co., Ltd. | 10,000.00 | 3,366,743.50 | |
Liaoning Metallurgical Technician College | 388,880.00 | 427,188.00 | |
Liaoning Vocational and Technical College of Metallurgy | 353,630.00 | 6,401,530.88 | |
Liaoning Yitong Machinery Manufacturing Co., Ltd. | 15,545.00 | ||
Bengang Electric Co., Ltd. | 9,353,903.06 | ||
Ansteel Electric Co., Ltd. | 523,642.00 | ||
North Hengda Logistics Co., Ltd. | 4,384,330.48 | ||
Benxi Iron and Steel (Group) Mining Co., Ltd. | 543,412.47 | ||
Ansteel Group Engineering Technology Co., Ltd. | 23,401,702.63 |
7. Centralized management of funds
(1) The main contents of the centralized fund management arrangement that the
Company participates in and implements are as follows:
In April 2021, after negotiation with Benxi Iron and Steel Group Finance Co., Ltd.(hereinafter referred to as Bengang Finance Company), the Company signed the“Financial Service Agreement” with Bengang Finance Company to agree on the
terms of the financial business and the upper limit of the relevant transactionamount between the Company and its subsidiaries and Bengang Finance Company.The agreement stipulates that in the next twelve months, the maximum dailydeposit balance of the company and its holding subsidiaries will be RMB 11 billionyuan, the maximum loan and other credit business will be RMB 8 billion yuan, andthe maximum credit line will be RMB 8 billion yuan.In December 2021, after negotiating with Ansteel Group Finance Co., Ltd.(hereinafter referred to as Ansteel Finance Company), the “Financial ServiceAgreement (2022-2024)” was signed, in order to agree on the relevant financialbusiness terms and the upper limit of the relevant transaction amount between theCompany and its subsidiaries and Ansteel Finance Company in 2022, 2023 and2024. The agreement stipulates that in the next twelve months, the maximum dailydeposit balance of the Company and its holding subsidiaries in Ansteel FinanceCompany is RMB 4.5 billion yuan, and the maximum credit limit for loans, billsand other forms is RMB 5 billion yuan. Ansteel Finance Company provides theCompany with a maximum entrusted loan of RMB 2 billion yuan.
(2) Funds collected by the Company to the Group
Funds that the Company does not collect into the account of the parent company ofthe group but directly deposits into the finance company
Project name | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||
Book balance | Bad debt provision | Book balance | Bad debt provision | |
Monetary funds (deposited in Ansteel Group Finance Co., Ltd.) | 2,244,735,874.76 | 1,074,918,531.75 | ||
Total | 2,244,735,874.76 | 1,074,918,531.75 | ||
Including: Funds with restricted withdrawals due to centralized management of funds |
(3) Funds borrowed by the company from the parent company or member units
of the group
Project name | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Other payables | 12,014,973.55 | 85,617,500.00 |
Total | 12,014,973.55 | 85,617,500.00 |
The subsidiary Dalian Benruitong Automotive Material Technology Co., Ltd.borrowed RMB 75,000,000.00 from Benxi Steel and Iron (Group) Co., Ltd., as ofJune 30, 2023, the Company has not yet paid interest of RMB 12,014,973.55.
XI. Commitments and Contingencies
Important Commitments
Important leasing contracts that have been signed and are being performedand their financial impact
(1) According to the “Land Use Right Leasing Contract” and subsequentsupplementary agreements signed between the Company and Bengang Group Co.,Ltd. on April 7, 1997, December 30, 2005 and later, the Company leases land fromBengang Group Co., Ltd. at RMB 0.594 per square meter per month. The leased
land area is 7,669,068.17 square meters and the annual rent is RMB 54.6651million.
(2) On August 14, 2019, the Company signed the “House Lease Agreement” withBenxi Steel (Group) and Beiying Steel respectively, leasing the houses andauxiliary 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 thedepreciation of the original rent value and the national additional tax, plusreasonable profit negotiation. The estimated annual rent is not more than RMB 20million yuan and RMB 18 million yuan respectively. The rental fee is settled andpaid monthly. This related party transaction has been reviewed and approved at thefourth meeting of the eighth Board of Directors of the Company.
(3) On July 15, 2019, the Company signed "Land Lease Agreement" with BensteelGroup and Benxi Steel (Group) respectively, and leased and used a total of 8 piecesof land of the two companies. The lease areas are 42,920.00 square meters and728,282.30 square meters respectively, with a lease term of 20 years, and a rentalprice of RMB 1.138 yuan per square meter per month. After the agreement comesinto effect, considering the national law and policy adjustments every five years,both parties should determine whether the rent needs to be adjusted according tothe pricing basis stipulated in Article 2 of this agreement. This related partytransaction has been reviewed and approved at the third meeting of the eighthBoard of Directors of the Company.
XII. Events after the Balance Sheet Date
Description of other events after the balance sheet dateBengang Steel Plates Co., Ltd. intends to exchange assets with Benxi Steel and Iron(Group) Co., Ltd. (hereinafter referred to as "Benxi Steel"), the assets to be acquired bythe Company are 100% equity of Benxi Iron and Steel (Group) Mining Co., Ltd. Theassets to be acquired by the Company are all assets and liabilities of the listed companyexcept retained assets and liabilities, the difference between the assets to be purchasedand the assets to be sold out shall be made up by one party to the other in cash (hereinafterreferred to as "the transaction").As of the disclosure date of this announcement, this transaction plan needs furtherdemonstration, communication and negotiation, and the scope of the underlying assets ofthe transaction, transaction price and other factors have not been finalized. After the
relevant matters are determined, the Company will reconvene the Board of Directors forreview and approval.
XIII. Other Important Matters
Other important matters affecting investor decision-makingAs of June 30, 2023, the Company's controlling shareholder, Benxi Steel and Iron (Group)Co., Ltd. holds 2,409,628,094 shares of the company, among them, 360,000,000 sharesare pledged, and 108,326,179 shares are restricted and frozen.
XIV. Notes to the Main Items of the Financial Statements of the Parent company
1. Notes Receivable
(1) Notes receivable presented by category
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Banker's acceptance bill | 20,000.00 | 139,442,122.88 |
Acceptance bill of finance company | 877,809,539.94 | |
Commercial acceptance bill | 529,751,278.14 | |
Total | 877,829,539.94 | 669,193,401.02 |
(2) Notes receivable pledged by the company at the end of the period
Items | Amount pledged at the end of the period |
Banker's acceptance bill | 255,189,626.40 |
Total | 255,189,626.40 |
(3) Bills receivable that have been endorsed or discounted by the company at the
end of the period and have not yet expired on the balance sheet date
Items | Amount derecognized at the end of the period | Amount not derecognized at the end of the period |
Banker's acceptance bill | 5,623,759,903.70 | 20,000.00 |
Acceptance bill of finance company | 850,706,864.21 | |
Commercial acceptance bill | ||
Total | 5,623,759,903.70 | 850,726,864.21 |
2. Accounts Receivable
(1) Disclosure by aging of accounts receivable
Aging | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Within 1 year | 693,021,659.55 | 924,570,849.45 |
1 to 2 years | 865,863.89 | 14,717,227.92 |
2 to 3 years | 2,404,917.15 | 1,087,625.52 |
Over 3 years | 134,431,991.41 | 153,473,088.92 |
Subtoal | 830,724,432.00 | 1,093,848,791.81 |
Less: Provision for bad debts | 137,086,813.40 | 162,812,995.23 |
Total | 693,637,618.60 | 931,035,796.58 |
(2) Classified by bad debt provision method
Types | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Percentage (%) | Amount | Percentage (%) | Amount | Percentage (%) | Amount | Percentage (%) | |||
Bad debt provisions made on an individual basis | 61,930,883.00 | 7.46 | 61,930,883.00 | 100.00 | 48,196,244.68 | 4.41 | 48,196,244.68 | 100.00 | ||
Bad debt provisions made on the combination | 768,793,549.00 | 92.54 | 75,155,930.40 | 9.78 | 693,637,618.60 | 1,045,652,547.13 | 95.59 | 114,616,750.55 | 10.96 | 931,035,796.58 |
Including: | ||||||||||
Aging portfolio | 284,497,106.87 | 75,155,930.40 | 209,341,176.47 | 886,147,539.07 | 81.01 | 114,616,750.55 | 12.93 | 771,530,788.52 | ||
Combination of related parties within the scope of consolidation | 484,296,442.13 | 484,296,442.13 | 159,505,008.06 | 14.58 | 159,505,008.06 | |||||
Total | 830,724,432.00 | 100.00 | 137,086,813.40 | 693,637,618.60 | 1,093,848,791.81 | 100.00 | 162,812,995.23 | 931,035,796.58 |
Bad debt provisions made on an individual basis:
Name of debtor | Balance as at 30 June 2023 | |||
Book balance | Bad debt provision | Bad debts ratio (%) | Reason for provision | |
Benxi Nanfenxinhe Metallurgical Charge Co., Ltd. | 48,196,244.68 | 48,196,244.68 | 100.00 | Discontinued, no return expected |
Benxi Iron and Steel (Group) Third Construction Engineering Co., Ltd. | 10,613,567.47 | 10,613,567.47 | 100.00 | Bankruptcy and reorganization of the enterprise is expected to be irrecoverable |
Benxi Iron and Steel (Group) First Construction Engineering Co., Ltd. | 3,121,070.85 | 3,121,070.85 | 100.00 | Bankruptcy and reorganization of the enterprise is expected to be irrecoverable |
Total | 61,930,883.00 | 61,930,883.00 |
Bad debt provisions made on the combination:
Items | Balance as at 30 June 2023 | ||
Accounts receivable | Bad debt provision | Bad debts ratio (%) | |
Within 1 year | 208,725,217.42 | 2,087,252.17 | 1.00 |
1 to 2 years | 865,863.89 | 86,586.39 | 10.00 |
2 to 3 years | 2,404,917.15 | 480,983.43 | 20.00 |
More than 3 years | 72,501,108.41 | 72,501,108.41 | 100.00 |
Total | 284,497,106.87 | 75,155,930.40 |
(3) The provision for bad debts accrued, reversed or recovered in the current
period
Type | Balance as at 31 December 2022 | Amount changed during the period | Balance as at 30 June 2023 | |||
Accrued | Reversed or recovered | Transferred or written-off | Other changes | |||
Provision for bad debts of accounts receivable | 162,812,995.23 | 24,278,420.75 | 1,447,761.08 | 137,086,813.40 | ||
Total | 162,812,995.23 | 24,278,420.75 | 1,447,761.08 | 137,086,813.40 |
(4) Actual written-off of accounts receivable in the current period
Items | Amount of written-off |
Actual written-off of accounts receivable | 1,447,761.08 |
Important write-off of accounts receivable:
Name of debtor | Nature of accounts receivable | Amount of written-off | Reason of written-off | Written-off procedures performed | Whether the payment is generated by a related party transaction |
Jining Forging Center | Sales of products | 461,229.33 | Deregistered | General Manager Office Meeting | No |
Xuzhou Jinshanqiao Development Zone Yongan Metal Material Co., Ltd. | Sales of products | 200,265.48 | Revoked | General Manager Office Meeting | No |
Shanghai Benxi Iron and Steel Industry and Trade Company | Sales of products | 193,625.29 | Deregistered | General Manager Office Meeting | No |
China Ordnance Materials Northeast Company Fushun Technology and Trade Center | Sales of products | 155,616.74 | Revoked | General Manager Office Meeting | No |
Tonghua Grain and Oil Machinery Factory | Sales of products | 141,139.39 | Deregistered | General Manager Office | No |
Name of debtor | Nature of accounts receivable | Amount of written-off | Reason of written-off | Written-off procedures performed | Whether the payment is generated by a related party transaction |
Meeting | |||||
Benxi Steel Yantai Marketing Co., Ltd. | Sales of products | 138,378.96 | Deregistered | General Manager Office Meeting | No |
Shandong Zhucheng Industrial Supply and Marketing Corporation | Sales of products | 87,085.43 | Revoked | General Manager Office Meeting | No |
Tieling Jinlong Petroleum Pipeline Machinery Product Distribution Office | Sales of products | 24,608.99 | Deregistered | General Manager Office Meeting | No |
Shenzhen Zhongtianda Materials Industry and Trade Co., Ltd. | Sales of products | 20,441.96 | Deregistered | General Manager Office Meeting | No |
Shunde Xinqiangsheng Mold Co., Ltd. | Sales of products | 12,635.20 | Deregistered | General Manager Office Meeting | No |
Benxi Steel Material Distribution Office | Sales of products | 7,167.87 | Revoked | General Manager Office Meeting | No |
Guangdong Zhaoqing Township Enterprise Building Materials and Minerals Company | Sales of products | 5,566.44 | Deregistered | General Manager Office Meeting | No |
Total | 1,447,761.08 |
(5) The top five units with the ending balance of accounts receivable collected by
the debtor
Name of debtor | Balance as at 30 June 2023 | ||
Book balance | % of the total closing balance of accounts receivable | Bad debt provision | |
The first | 238,750,179.09 | 28.74 | |
The second | 149,938,272.79 | 18.05 | |
The third | 76,326,718.36 | 9.19 | 763,267.18 |
The fourth | 50,924,691.25 | 6.13 | |
The fifth | 50,834,840.47 | 6.12 | 508,348.40 |
Total | 566,774,701.96 | 68.23 | 1,271,615.58 |
(6) Accounts receivable derecognized due to transfer of financial assets
None.
(7) Amount of assets and liabilities formed by the transfer of accounts receivable
and continued involvementNone.
3. Accounts Receivable Financing
(1) Details of accounts receivable financing
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Notes receivable | 827,579,316.11 | 127,468,835.80 |
Total | 827,579,316.11 | 127,468,835.80 |
4. Other Receivables
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Interest receivable | ||
Dividends receivable | ||
Other receivables | 166,743,093.49 | 150,724,545.56 |
Total | 166,743,093.49 | 150,724,545.56 |
Other receivables
(1) Disclosure by aging of other receivable
Aging | Balance as at 30 June 2023 | Balance as at 31 December 2022 |
Within 1 year | 95,131,756.52 | 89,160,291.73 |
1 to 2 years | 70,536,371.78 | 58,187,051.40 |
2 to 3 years | 2,772,924.29 | 3,519,908.21 |
More than 3 years | 96,810,437.76 | 63,260,175.57 |
Subtoal | 265,251,490.35 | 214,127,426.91 |
Less: Provision for bad debts | 98,508,396.86 | 63,402,881.35 |
Total | 166,743,093.49 | 150,724,545.56 |
(2) Classified by bad debt provision method
Types | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Percentage (%) | Amount | Bad debts ratio (%) | Amount | Percentage (%) | Amount | Bad debts ratio (%) | |||
Bad debt provisions made on an individual basis | 49,333,315.37 | 18.60 | 49,333,315.37 | 100.00 | 15,031,598.34 | 7.02 | 15,031,598.34 | 100.00 | ||
Bad debt provisions made on the combination of credit risk characteristics | 215,918,174.98 | 81.40 | 49,175,081.49 | 22.77 | 166,743,093.49 | 199,095,828.57 | 92.98 | 48,371,283.01 | 24.30 | 150,724,545.56 |
Including: | ||||||||||
Combination 1: Aging portfolio | 147,302,369.97 | 55.53 | 49,175,081.49 | 49.92 | 98,127,288.48 | 136,339,409.35 | 63.67 | 48,371,283.01 | 35.48 | 87,968,126.34 |
Combination 2: Combination of related parties within the scope of consolidation | 68,615,805.01 | 25.87 | 68,615,805.01 | 62,756,419.22 | 29.31 | 62,756,419.22 | ||||
Total | 265,251,490.35 | 100.00 | 98,508,396.86 | 166,743,093.49 | 214,127,426.91 | 100.00 | 63,402,881.35 | 150,724,545.56 |
Bad debt provisions made on an individual basis:
Name of debtor | Balance as at 30 June 2023 | |||
Book balance | Bad debt provision | Bad debts ratio (%) | Provision reason | |
Unrecoverable taxes (VAT, properrty tax, transfer-out input tax) | 13,017,578.30 | 13,017,578.30 | 100.00 | Cannot be recovered |
Others | 20,518,449.85 | 20,518,449.85 | 100.00 | Cannot be recovered |
Benxi City Xihu District Renewable Resources Utilization Corporation | 2,951,245.44 | 2,951,245.44 | 100.00 | Cannot be recovered |
Liaoning Hengyi Financial Leasing Co., Ltd. | 2,357,285.76 | 2,357,285.76 | 100.00 | Cannot be recovered |
Dalian China Metallurgical Import & Export Dalian Company | 2,000,000.00 | 2,000,000.00 | 100.00 | Cannot be recovered |
Financial Services Bureau Daily Loan Sinking Fund | 1,740,000.00 | 1,740,000.00 | 100.00 | Cannot be recovered |
Personal loan | 1,370,308.33 | 1,370,308.33 | 100.00 | Cannot be recovered |
Benxi Peace Material Supply and Marketing Company | 1,097,678.20 | 1,097,678.20 | 100.00 | Cannot be recovered |
Xiuyan Manchu Autonomous County Materials Recycling Co., Ltd. | 1,018,878.71 | 1,018,878.71 | 100.00 | Cannot be recovered |
Inner Mongolia Haotong Energy Co., Ltd. | 970,860.82 | 970,860.82 | 100.00 | Cannot be recovered |
Benxi Economic Development Zone Fuben Industry and Trade Industrial Company | 730,362.94 | 730,362.94 | 100.00 | Cannot be recovered |
Benxi City Pingshan Minzheng Steel Factory | 672,803.75 | 672,803.75 | 100.00 | Cannot be recovered |
Qigang in Heilongjiang Province | 627,080.88 | 627,080.88 | 100.00 | Cannot be recovered |
Benxi Iron and Steel (Group) Third Construction Engineering Co., Ltd. | 260,782.39 | 260,782.39 | 100.00 | Bankruptcy and reorganization of enterprises, expected to be irrecoverable |
Total | 49,333,315.37 | 49,333,315.37 |
Bad debt provisions made on the combination:
Types | Balance as at 30 June 2023 | ||
Book balance of other receivables | Bad debt provision | Bad debts ratio (%) | |
Within 1 year | 95,131,756.52 | 951,317.57 | 1.00 |
1 to 2 years | 1,920,566.77 | 192,056.68 | 10.00 |
2 to 3 years | 2,772,924.29 | 554,584.85 | 20.00 |
More than 3 years | 47,477,122.39 | 47,477,122.39 | 100.00 |
Total | 147,302,369.97 | 49,175,081.49 |
(3) Situation of bad debt provisions
Bad debt provision | The first stage | The second stage | The third stage | Total |
Expected credit losses over the next 12 months | Expected credit losses over the entire duration (no credit impairment occurred) | Expected credit loss over the entire duration (credit impairment has occurred) | ||
Balance as at 31 December 2022 | 801,060.44 | 1,353,672.38 | 61,248,148.53 | 63,402,881.35 |
Balance as at 31 December 2022 is in the current period | ||||
-- Transfer to the second stage | -154,164.80 | 154,164.80 | ||
-- Transfer to the third stage | -925,201.28 | 925,201.28 | ||
-- Transfer back to the second stage | ||||
-- Transfer back to the first stage | ||||
Provision for this period | 304,421.93 | 164,005.63 | 35,445,003.54 | 35,913,431.10 |
Transfer back in this period | ||||
Transfer and derecognition in this period | ||||
Derecognition in this period | 807,915.59 | 807,915.59 | ||
Other changes | ||||
Balance as at 30 June 2023 | 951,317.57 | 746,641.53 | 96,810,437.76 | 98,508,396.86 |
Changes in the book balance of other receivables:
Book balance | The first stage | The second stage | The third stage | Total |
Expected credit losses over the next 12 months | Expected credit losses over the entire duration (no credit impairment occurred) | Expected credit loss over the entire duration (credit impairment has occurred) | ||
Balance as at 31 December 2022 | 109,079,474.11 | 41,787,777.23 | 63,260,175.57 | 214,127,426.91 |
Balance as at 31 December 2022 is in the current period | ||||
-- Transfer to the second stage | -7,408,871.32 | 7,408,871.32 | ||
-- Transfer to the third stage | -178,931.04 | 178,931.04 | ||
-- Transfer back to the second stage | ||||
-- Transfer back to the first stage | ||||
Additions in this period | 30,442,192.94 | 44,388,476.32 | 36,748,913.67 | 111,579,582.93 |
Derecognition in this period | 28,973,430.11 | 20,096,897.76 | 1,383,042.49 | 50,453,370.36 |
Other changes | 807,915.59 | 807,915.59 | ||
Balance as at 30 June 2023 | 103,139,365.62 | 73,309,296.07 | 97,997,062.20 | 274,445,723.89 |
(4) The provision for bad debts accrued, reversed or recovered in the current period
Type | Balance as at 31 December 2022 | Amount changed during the period | Balance as at 30 June 2023 | |||
Accrued | Reversed or recovered | Transferred or written-off | Other changes | |||
Provision for bad debts of other receivables | 63,402,881.35 | 35,913,431.10 | 807,915.59 | 98,508,396.86 | ||
Total | 63,402,881.35 | 35,913,431.10 | 807,915.59 | 98,508,396.86 |
(5) Other receivables actually written off in the current period
Item | Amount written off |
Other receivables actually written off | 807,915.59 |
Important write-off of other receivables:
Name of debtor | Nature of other receivables | Amount of written-off | Reason of written-off | Written-off procedures performed | Whether the payment is generated by a related party transaction |
Beijing Bensteel Material Sales Center | Sales of products | 807,915.59 | Revoked | General Manager Office Meeting | No |
Total | 807,915.59 |
(6) Classification by nature of payment
Nature | Book balance as at 30 June 2023 | Book balance as at 31 December 2022 |
Temporary payment | 231,895,133.40 | 205,620,987.47 |
Others | 33,356,356.95 | 8,506,439.44 |
Total | 265,251,490.35 | 214,127,426.91 |
(7) The top five units with the ending balance of other receivables collected by thedebtor
Name of debtor | Nature of other receivables | Balance as at 30 June 2023 | Aging | % of the total closing balance of other receivables | Provision for bad debts as at 30 June 2023 |
The first | Temporary payment | 14,431,832.25 | Within 1 year | 5.44 | 144,318.32 |
The second | Temporary payment | 12,212,650.80 | Within 1 year | 4.60 | 122,126.51 |
The third | Temporary payment | 11,348,676.33 | 1-2 years | 4.28 | |
The fourth | Temporary payment | 4,010,871.64 | Within 1 year | 1.51 | 40,108.72 |
The fifth | Temporary payment | 4,609,686.93 | Within 1 year | 1.74 | 46,096.87 |
Total | 46,613,717.95 | 17.57 | 352,650.42 |
(8) Other receivables involving government grants
None.
(9) Other receivables derecognized due to transfer of financial assets
None.
(10) The amount of assets and liabilities formed by transferring other receivablesand continuing to be involvedNone.
5. Long-term Equity Investments
Items | Balance as at 30 June 2023 | Balance as at 31 December 2022 | ||||
Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Investment in subsidiaries | 2,222,281,590.24 | 2,222,281,590.24 | 2,222,281,590.24 | 2,222,281,590.24 | ||
Investment in associates and joint ventures | 47,556,655.03 | 47,556,655.03 | 47,996,314.61 | 47,996,314.61 | ||
Total | 2,269,838,245.27 | 2,269,838,245.27 | 2,270,277,904.85 | 2,270,277,904.85 |
(1) Investment in subsidiaries
Investees | Balance as at 31 December 2022 | Increase in this period | Decrease in this period | Balance as at 30 June 2023 | Provision for impairment in the current period | Balance of provision for impairment as at 30 June 2023 |
Guangzhou Bensteel Trading Co., Ltd. | 200,000,000.00 | 200,000,000.00 | ||||
Shanghai Bensteel Metallurgical Technology Co., Ltd. | 229,936,718.57 | 229,936,718.57 | ||||
Dalian Benruitong Automotive Material Technology Co., Ltd. | 65,000,000.00 | 65,000,000.00 | ||||
Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd. | 1,019,781,571.10 | 1,019,781,571.10 | ||||
Changchun Bensteel Sales Co., Ltd. | 28,144,875.36 | 28,144,875.36 | ||||
Yantai Bengang Iron and Steel Sales Co., Ltd. | 219,100,329.41 | 219,100,329.41 | ||||
Tianjin Bengang Iron and Steel Trading Co., Ltd. | 230,318,095.80 | 230,318,095.80 | ||||
Benxi Bensteel Sales Co., Ltd. | 30,000,000.00 | 30,000,000.00 | ||||
Shenyang Bensteel Metallurgical Technology Co., Ltd. | 200,000,000.00 | 200,000,000.00 | ||||
Total | 2,222,281,590.24 | 2,222,281,590.24 |
(2) Investment in associates and joint ventures
Investees | Balance as at 31 December 2022 | Changes in current period | Balance as at 30 June 2023 | Balance of provision for impairment as at 30 June 2023 | |||||||
Additional investment | Reduced investment | Investment Gains and losses recognized under the equity method | Other comprehensive income adjustment | Other equity changes | Declaration of cash dividends or profit | Provision for impairment | Others | ||||
Associates | |||||||||||
Bensteel Baojin (Shenyang) Automotive New Material Technology Co., Ltd. | 47,996,314.61 | -439,659.58 | 47,556,655.03 | ||||||||
Subtoal | 47,996,314.61 | -439,659.58 | 47,556,655.03 | ||||||||
Total | 47,996,314.61 | -439,659.58 | 47,556,655.03 |
6. Operating Income and Operating Costs
(1) Details of operating income and operating costs
Items | Current period | Previous period | ||
Revenue | Costs | Revenue | Costs | |
Principal business | 29,752,956,987.48 | 30,143,666,528.21 | 33,392,817,816.17 | 32,060,330,971.40 |
Other business | 598,633,897.79 | 582,130,402.92 | 2,381,220,254.26 | 2,344,381,961.67 |
Total | 30,351,590,885.27 | 30,725,796,931.13 | 35,774,038,070.43 | 34,404,712,933.07 |
(2) Revenue generated by the contract
Contract classification | Current period amount |
Classified by business area | |
Domestic | 27,268,083,739.08 |
Abroad | 3,083,507,146.19 |
Total | 30,351,590,885.27 |
Classified by the time of commodity transfer | |
Recognized at a certain point in time | 30,350,227,817.31 |
Recognizde over a certain period of time | 1,363,067.96 |
Total | 30,351,590,885.27 |
7. Investment Income
Items | Current period | Previous period |
Long-term equity investment income measured by cost method | 53,139,377.16 | |
Long-term equity investment income measured by equity method | -439,659.58 | |
Investment income from disposal of long-term equity investment | 6,059,547.35 | |
Investment income of financial assets held-for-trading during the holding period | -2,502,067.50 | |
Investment income from debt restructuring | 694,683.35 | |
Total | -2,247,043.73 | 59,198,924.51 |
XV. Supplementary Information
1. Details of Non-recurring Profit and Loss
Items | Amount | Notes |
Profit or loss from disposal of non-current assets | ||
Tax refunds, reductions and exemptions for ultra vires approval or without formal approval documents | ||
Government grants attributable to profit and loss of current period (except such government subsidy closely related to the company's normal business operation, meeting the regulation of national policy and enjoyed constantly in certain quota or quantity according to a certain standard) | 34,571,691.80 | |
Fund occupancy fees charged to non-financial enterprises included in current profit and loss | ||
The investment cost of the enterprise to obtain subsidiaries, associates and joint ventures is less than the income generated by the fair value of the identifiable net assets of the invested unit that should be enjoyed when the investment is obtained | ||
Non-monetary asset exchange gains and losses | ||
Profit and loss from entrusting others to invest or manage assets | -2,796,530.07 | |
Provisions for asset impairment due to force majeure factors, such as natural disasters | ||
Debt restructuring profit and loss | 694,683.35 | |
Enterprise reorganization expenses, such as expenses for relocating employees, integration expenses, etc. | ||
Profit and loss exceeding the fair value of a transaction whose transaction price is obviously unfair | ||
Net profit and loss for the current period from the beginning of the period to the date of combination of subsidiaries arising from a business combination under common control | ||
Profit and loss arising from contingencies unrelated to the normal business operations of the company | ||
In addition to the effective hedging business related to the company's normal business operations, gains and losses from changes in fair value arising from holding transactional financial assets, derivative financial assets, transactional financial liabilities, and derivative financial liabilities, as well as disposal of |
Items | Amount | Notes |
transactional financial assets and derivative financial assets Investment income from assets, trading financial liabilities, derivative financial liabilities and other debt investments | ||
Accounts receivable and contract asset impairment provision that have been individually tested for impairment | ||
Profit and loss from external entrusted loans | ||
Profit and loss arising from changes in the fair value of investment real estate that adopts the fair value model for subsequent measurement | ||
The impact of one-time adjustment to the current profit and loss in accordance with the requirements of taxation, accounting and other laws and regulations on the current profit and loss | ||
Custody fee income from entrusted operations | ||
Other non-operating revenue and expenditure other than above items | -30,054,378.76 | |
Other profit and loss items that meet the definition of non-recurring profit and loss | ||
Subtoal | 2,415,466.32 | |
Impact of income tax | -75,725.75 | |
Impact of minority interests (net of tax) | -6,025.40 | |
Total | 2,333,715.17 |
2. Return on Equity and Earnings Per Share
Profit in the Reporting Period | Weighted average Return on Equity (%) | Earnings per share (Yuan) | |
Basic EPS | Diluted EPS | ||
Net profit attributable to ordinary shareholders | -5.49% | -0.2446 | -0.1558 |
Net profit attributable to ordinary shareholders after deducting non-recurring profit and loss | -5.50% | -0.2452 | -0.1563 |
Bengang Steel Plates Co., Ltd.
(Affix Official Seal)
29 August 2023