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