Bengang Steel Plates Co., Ltd. Annual Report 2014
Bengang Steel Plates Co., Ltd.
Annual Report 2014
April 2015
Bengang Steel Plates Co., Ltd. Annual Report 2014
Chapter I. Important Prompts, Table of Contents, and Definitions
The Board of Directors, The Supervisory Committee, the supervisors and the directors of the Company guarantee
that there are no significant omissions, fictitious or misleading statements carried in the Report and we will accept
individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report.
All of the directors attended the board meeting on which this report was examined.
Profit distribution preplan, which was adopted at the board meeting, is: basing on the total of 3,136,000,000
capital shares on December 31,2014, RMB0.50 and 0 bonus share(tax included) will be distributed to each 10
shares. No capitalization of common reserves will be carried out.
Chairman of the Board – Wang Shu, Chief Financial Officer – Hange, and Head of Accounting Dept.– Mr. Wang
Shaoyu, hereby declare: the authenticity, accuracy, and integrality of the report are guaranteed.
This report is prepared both in versions of Chinese and English. The Chinese version shall prevail when there are
any controversial statements in the two versions.
Bengang Steel Plates Co., Ltd. Annual Report 2014
Table of Contents
Chapter I. Important Prompts, Table of Contents, and Definitions ........................................................................... 2
Chapter II. Company Profile...................................................................................................................................... 6
Chapter III. Financial Highlights ............................................................................................................................... 8
Chapter IV. Board of Directors Report ................................................................................................................... 10
Chapter V. Significant Events ............................................................................................................................... 27
Chapter VI. Change of Share Equity and Shareholders ........................................................................................... 38
Chapter VII. Particulars about Preference Shares.................................................................................................... 43
Chapter VIII. Directors, Supervisors, Senior Executives and Employees ............................................................... 44
Chapter IX. Administration ..................................................................................................................................... 50
Chapter X. Internal Control ..................................................................................................................................... 54
Chapter XI. Financial Report ................................................................................................................................... 56
Section XII. Documents for Reference .................................................................................................................... 68
Bengang Steel Plates Co., Ltd. Annual Report 2014
Glossary
Terms Defined as Description
Bengang Bancai, Bengang Steel, the Company, the
Defined as Bengang Steel Plates Co., Ltd.
Listed Company
Bengang Group, the Group Defined as Bengang Group Co., Ltd.
Bengang Co. Defined as Benxi Steel (Group) Co., Ltd.
Liaoning State-owned Asset Supervisory and Management
Liaoning Provincial State-asset Administration Defined as
Committee
SSE Defined as Shenzhen Stock Exchange
Bengang Puxiang Defined as Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd.
Bengang Steel Plates Co., Ltd. Annual Report 2014
Prompt of Risks
The prospective statements contained in the annual report do not constitute any substantial commitment to the
investors. Investors please be aware of the risks attached to investment decisions.
Bengang Steel Plates Co., Ltd. Annual Report 2014
Chapter II. Company Profile
I. Basic Information
Stock ID Bengang Bancai, Bengangban B Stock Code 000761、200761
Stock Exchange Listed in Shenzhen Stock Exchange
Company Name in Chinese 本钢板材股份有限公司
Short form of Company Name in Chinese Bengang Bancai
Company Name in English BENGANG STEEL PLATES CO.,LTD.
Short form of Company Name in English BSP
Legal representative: Wang Shu
Reg. Add. No.16, Renmin Road, Pingshan District, Benxi City, Liaoning Province
Post Code
Office address No.16, Renmin Road, Pingshan District, Benxi City, Liaoning Province
Post Code:
Web Address None
Email. bgbc761@126.com
II. Contacts
Secretary of the Board Representative of Stock Affairs
Name Zhang Jichen Tong Weigang
No.16, Renmin Road, Pingshan District, Benxi City, Liaoning No.16, Renmin Road, Pingshan District, Benxi City,
Address
Province Liaoning Province
Tel. 47828360
Fax. 47824158
Email. bgbczjc761@126.com bgbc761@126.com
III. Place for information disclosure
Press media for information disclosure China Securities Journal, Securities Times, Hong Kong Commercial Daily
Web address for the annual report as assigned by CSRC. http://www.cninfo.com.cn
Place for inquiry of the annual report Secretary Office of the Board, Bengang Steel Plate Co., Ltd.
Bengang Steel Plates Co., Ltd. Annual Report 2014
IV. Change of Business Registration
Registration No. of Incorporation No. of Taxation Organization
Registration place
date Certificate Registration code
Liaoning Commerce &
Primary registration Jun 27 1997 Industry Administration 210000004931633 210502242690243 24269024-3
Bureau
Last registration before
Dec 31 2014 No change No change No change No change
the end of report period
Change of main business since listed None
Change of holding shareholder (if any) None
V. Miscellaneous information
CPA hired by the Company
Name of the CPA BDO China Shu Lun Pan Certified Public Accountants LLP
Address of the CPA Address: 4/F 61 Nanjing Rd. East, Huangpu, Shanghai
Name of CPA signed on the auditors report Zhu Jinmei, Zhang Huice
Sponsoring institution hired by the Company, which is responsible to overseeing the Companys operation on a
continuous basis:
[] Applicable; [V] Not applicable
Financial consultancy institution hired by the Company, which is responsible to overseeing the Companys
operation on a continuous basis:
[] Applicable; [V] Not applicable
Bengang Steel Plates Co., Ltd. Annual Report 2014
Chapter III. Financial Highlights
I. Main accounting data and indices
Are there any retrospective adjustment or restatement of financial information of previous year due to change of
accounting policies or correcting of accounting errors?
[V] Yes[] No
Increase /
Decrease
2013 over the
previous
year
Not adjusted Adjusted Adjusted Not adjusted Adjusted
Turnover (RMB) 41,422,088,025.70 40,329,344,514.29 40,329,344,514.29 2.71% 40,580,870,572.36 40,580,870,572.36
Net profit attributable
to shareholders of the 232,804,820.19 275,592,999.75 275,592,999.75 -15.53% 79,358,868.19 79,358,868.19
listed company (yuan)
Net profit attributable
to the shareholders of
the listed company and
187,126,217.32 56,290,264.91 56,290,264.91 232.43% -235,532,180.35 -235,532,180.35
after deducting of
non-recurring
gain/loss(RMB)
Net Cash flow
generated by business 2,868,140,094.86 2,687,944,078.48 2,687,944,078.48 6.70% 1,783,677,238.80 1,783,677,238.80
operation (RMB)
Basic earnings per
0.074 0.088 0.088 -15.91% 0.025 0.025
share (Yuan/share)
Diluted earnings per
0.074 0.088 0.088 -15.91% 0.025 0.025
share (Yuan/share)
Net income on asset,
1.52% 1.75% 1.75% -0.23% 0.49% 0.49%
weighted
Changed
End of 2013 over end of End of 2012
End of 2014
last year
Not adjusted Adjusted Adjusted Not adjusted Adjusted
Gross Assets (RMB) 49,170,603,030.67 43,050,307,324.66 43,050,307,324.66 14.22% 43,094,461,609.89 43,094,461,609.89
Net asset attributable
15,384,562,323.08 15,308,337,697.63 15,308,337,697.63 0.50% 16,243,473,795.94 16,243,473,795.94
to owners of the PLC
II. Differences in accounting information under IAS and domestic accounting standard
1. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
[] Applicable; [V] Not applicable
No difference between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard for the report period.
Bengang Steel Plates Co., Ltd. Annual Report 2014
2. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard
[] Applicable; [V] Not applicable
No difference between the net profit and net asset in the financial reports prepared under IAS and Chinese
Accounting Standard for the report period.
III. Non-recurring gain/loss items and amounts
[V] Applicable [ ]Not applicable
In RMB Yuan
Amount of Amount of Amount of
Items Remarks
2014 2013
Gain/loss from disposal of non-current assets (includes the recovered part
-3,000,928.56 -12,804,674.19 -13,839,438.91
of asset impairment provision already provided)
Gains and losses included in the current period of government subsidies,
excluding those government grants which are closely related to normal
18,722,224.00 159,439,621.71 28,193,565.58
business and in line with national policy , or in accordance with fixed
standards or quantities
Gain/loss from commissioned investment or assets 20,845,473.00 12,600,032.95 1,963,430.97
Gain/loss from debt reorganization 5,940,400.95 17,709,392.13 13,008,015.04
Current net gain/loss of subsidiaries under same control from beginning of
33,226,800.18 9,549,636.49
term till date of consolidation
Other non-business income and expenditures other than the above 5,156,149.77 9,465,980.04 277,600,209.56
Less: Influenced amount of income tax 710,902.39 -624,726.31 393,431.06
Influence on minority shareholders equity (after tax) 1,273,813.90 959,144.29 1,190,939.13
Total 45,678,602.87 219,302,734.84 314,891,048.54 --
If the company defines those items to recurring gain/loss items, which were defined by “Regulations of
Information Disclosure of PLCs, Explanation No.1 - Non-recurring gain/loss” as non-recurring gain/loss, please
provide reason here.
[] Applicable; [V] Not applicable
None of non-recurring gain/loss items recognized as recurring gain/loss items as defined by the Information
Disclosure Explanatory Announcement No.1 – Non-recurring gain/loss in the report period.
Bengang Steel Plates Co., Ltd. Annual Report 2014
Chapter IV. Board of Directors’ Report
I. Business overview
In the report period, along with severe market situation, the Company kept doing its best to maintain healthy
operation in aspects of production, marketing, reformation, and cost controlling. For the whole year, the Company
has realized output of pig iron of 10.0930 million tons, raw steel of 10.1038 million tons, which have been
increasing steadily. Meanwhile the output of hot-rolled plates was 11.74 million tons, cool-rolled plates 3.73
million tons, and special steel 750 thousand tons. Works of the year were as following:
1. An quick-action integral business pattern was built. The leading position in the market was reinforced by further
refining of territory layout and product lines.
2. Kept enforcing cost control to enlarge profit margin. Flexible purchasing policies were adopted to catch up the
change of market prices. Analyze and assessment on business processes were reinforced.
3. All production and financial planning and operations were upgraded scientifically. All energy and material
supplying systems were in stable operation constantly.
4. R&D systems were further optimized and integrated. Technical development was following the market demand
and contributed significantly to overall development.
5. Production equipment was further upgraded and optimized. Product lines were refined to face significant
drawbacks such as resource restriction and production bottleneck. They were pushed toward higher class, greater
scale, and better quality.
6. A number of measurements were implemented to reinforce the sense of safe operation. Responsibilities and
corresponding assessment schemes were assigned to each department. There was zero material accident in the
report period.
7. Transferring the pressure from environment protection to power of development. 98% of the environment
protection facilities were in stable operation.
8. Management system was improved constantly by standardizing and refining. A number of regulations and rules
were formulated.
II. Analysis of main business
1. Summary
Retrospection on progress of the development strategies and business plan disclosed in previous period.
No. Items This report term Same period last Increase/decrease Significant change and causations
year (%)
1 Turnover 41,422,088,025.70 40,329,344,514.29 2.71%
2 Operation cost 38,489,119,026.43 37,751,979,617.32 1.95%
3 Sales expense 863,079,137.09 697,569,398.95 23.73%
4 Administrative 899,624,299.29 1,140,642,182.09 -21.13%
expense
5 Financial expenses 717,292,853.39 401,940,789.84 78.46% Increase of loan and decrease of
exchange gain/loss
6 Net cash flow 4,874,611,555.66 716,276,674.82 580.55% Increase of loan
Statements on the difference between the actual performance and the projected profitability if it is over 20%.
[] Applicable; [V] Not applicable
Bengang Steel Plates Co., Ltd. Annual Report 2014
Change of main business operation pattern
[] Applicable; [V] Not applicable
2. Revenue
Remarks
None
Whether the sales of products are greater than sales of services?
[V] Yes[] No
Change over same
Business categories Items Unit 2014
period last year
Sales Ton 12,343,978.13 10,533,155.29 17.00%
Steel rolling business Output Ton 12,639,120.5 10,548,400.18 20.00%
Inventory Ton 800,079.68 504,937.31 58.00%
Statement on change of amounts for over 30% YoY.
[] Applicable
