Bengang Steel Plates Co., Ltd.
Annual Report 2024
2024 Annual ReportⅠ. Important Notice, Table of Contents, and Definitions
The Board of Directors, the Supervisory Board, and all Directors, Supervisors, and SeniorManagement of the Company ensure the authenticity, accuracy, and completeness of this annualreport and confirm that there are no false records, misleading statements, or material omissions. Theyassume individual and joint legal responsibility for the report.
Huang Zuowei, the person in charge of the company, Zheng Zhengli, the person in charge ofaccounting work, and XXX3, the person in charge of the accounting organization (accounting officer),hereby confirm that the financial report in this annual report is true, accurate and complete.
All directors have attended the board meeting for reviewing this report.
This report involves forward-looking statements such as future plans, which do not constitute asubstantial commitment of the company to investors. Investors are advised to pay attention toinvestment risks. This report is prepared in Chinese and English respectively. In the event ofdiscrepancies in the interpretation of Chinese and foreign texts, the Chinese version shall prevail.
The Company has described the existing risks and countermeasures in detail in this report, pleaserefer to the content of Section 3-11 "Risks Faced by the Company and Countermeasures". "ChinaSecurities Journal", "Securities Times", "Hong Kong Commercial Daily" and Juchao InformationNetwork (www.cninfo.com.cn) are selected as the company's information disclosure media. Allinformation of the company is subject to the information published in the above-mentioneddesignated media. Investors are kindly advised to pay attention to investment risks.
The Company plans not to pay cash dividends, issue bonus shares, or convert capital reserves intoshare capital.
Table of Contents
Ⅰ. Important Notice, Table of Contents, and Definitions ..................................................................... 2
Ⅱ. Company Profile and Main Financial Index ................................................................................... 6
III. Management Discussion and Analysis ........................................................................................ 11
IV. Corporate Governance ................................................................................................................. 38
V. Environment and Social Responsibilities...................................................................................... 58
VI. Important Events .......................................................................................................................... 64
VII. Status of Share Capital Changes and Shareholders .................................................................. 106
VIII. Status of Preferred Shares ....................................................................................................... 115
IX. Status of Bonds .......................................................................................................................... 116
X. Financial Report .......................................................................................................................... 120
Reference File Directory
1. Financial statements containing the signatures and seals of legal representative, chief
financial officer, and chief accountant;
2. Original audit report stamped by the accounting firm and signed and stamped by certified
public accountants;
3. The originals of all company documents and announcements publicly disclosed during the
reporting period;
4. Annual reports published in other securities markets.
Definition
Terms to be defined Refers to Content of DefinitionBengang Bancai, the Company, theListed Company
Refers to Bengang Steel Plates Co., Ltd.Ansteel Refers toAnsteel Group Co., Ltd.
Bengang Group Refers to Bengang Group Co., Ltd.Bengang Steel Co., Bengang Co. Refers to Benxi Steel & Iron (Group) Co., Ltd.SSE Refers to Shenzhen Stock ExchangeLiaoning Provincial State-assetAdministration
Refers to
Liaoning State-owned Asset Supervisory andManagement CommitteeBengang Posco Refers to Bengang Posco Cold-rolled Sheet Co., Ltd.Ansteel Finance Co. Refers to Ansteel Group Finance Co., Ltd.Angang Refers to Angang Steel Company LimitedVanadium & Titanium Co. Refers to
Ⅱ. Company Profile and Main Financial Index
I. Company Information
Stock abbreviation Bengang Bancai, Bengangban B Stock Code 000761, 200761Stock exchange for listing Shenzhen Stock ExchangeCompany name in Chinese 本钢板材股份有限公司
本钢板材
| Abbreviation of Company name in Chinese |
| Company name in English (If any) |
BENGANG STEEL PLATES CO., LTD.
BSPLegal representative Huang ZuoweiRegistered Address No 16 Renmin Road, Pingshan District, Benxi City, Liaoning ProvincePostal Code of RegisteredAddress
117000
Abbreviation of Companyname in English (If any)Historical Changes of
Registered Address
None
Office Address No1-1 Gangtie Road, Pingshan District, Benxi City, Liaoning ProvincePostal Code of OfficeAddress
117000Company Website NoneEmail zhengzhengli76@126.com
II. Contact Information
Historical Changes of
| Secretary of the Board | Representative of Stock Affairs |
NameZheng ZhengliChen LiwenAddress
No1-1 Gangtie Road, Pingshan District,Benxi City, Liaoning Province
No1-1 Gangtie Road, Pingshan District,Benxi City, Liaoning Province
Tel024-47827003 024-47828980
Fax024-47827004 024-47827004
| zhengzhengli76@126.com | bgbc000761@126.com |
III. Information Disclosure and Place for Consulting
| Stock exchange website for annual report disclosure | http://www.szse.cn |
Designated media and website for annual report disclosure
| "China Securities Journal," "Securities Times," CNINFO (http://www.cninfo.com.cn) | |
| Annual report archive location | Secretary Office of the Board, Bengang Steel Plate Co., Ltd. |
IV. Change of Business Registration
| Organization Code | 91210000242690243E |
| Changes of principal business activities since listing (if any) | No change |
Changes of the controlling shareholder in the past (is any)
the State-owned Assets
| Supervision and Administration Commission of Liaoning Provincial People's Government, |
signed the "Agreement on the Free Transfer of State-ownedEquity of Benxi Steel Group Co., Ltd. between the State-ownedAssets Supervision and Administration Commission of LiaoningProvincial People's Government and Angang Group Co., Ltd."The State-
Commission of Liaoning Province transferred 51% of its sharesin Benxi Steel Group Co., Ltd. to Angang Group Co., Ltd. Thebusiness
| registration change was completed on October 12, |
2021, and Angang Group Co., Ltd. became the actual controllerof the company. The company's direct controlling shareholder
V. Other InformationThe information of accounting Firm engaged by the Company:
remains unchanged, still being Benxi Steel (Group) Co., Ltd.Name of the accountants’ firm
| Name of the accountants’ firm | BDO China Shu Lun Pan Certified Public Accountants LLP |
| Address of the accountants’ firm | Address: 4/F 61 Nanjing Rd. East, Huangpu, Shanghai |
| Name of the signing auditors | Wang Hongna, Fu Yangyi |
Sponsor engaged by the Company to conduct sustained supervision during the reporting period
□Applicable ?Not applicable
Financial advisor responsible for ongoing supervision during the reporting period
□Applicable ?Not applicable
VI. Key accounting data and financial indicators
Whether the Company needs to retrospectively adjust or restate the accounting data of previous years?Yes □NoReasons for retrospective adjustment or restatementBusiness Combinations under Common Control
2024
2023
Changecompared to the
previous year
2022Prior toadjustment
Afteradjustment
Afteradjustment
Prior toadjustment
Afteradjustment
51,266,361,501.22 57,814,969,351.65 57,957,301,717.02 -11.54% 62,616,621,627.60 62,950,821,627.81
| Operating income (RMB) |
| Net profit |
attributable to
-5,037,271,398.28 -1,742,574,163.92 -1,720,871,697.00 -192.72% -1,232,976,557.37 -1,220,743,024.01
the listedcompany
| (RMB) |
| Net profit after |
deducting ofnon-recurringgain/lossattributable totheshareholders oflisted company
-5,221,601,823.63 -2,067,775,288.69 -2,062,055,810.29 -153.22% -1,416,415,028.51 -1,418,647,368.46
| (RMB) |
| Net Cash flow |
generated bybusinessoperation
1,100,287,994.25 4,329,351,258.30 4,346,233,881.23 -74.68% 1,276,362,965.56 1,195,846,602.31
| (RMB) |
| Basic earnings |
per share
-1.226 -0.424 -0.419 -192.60% -0.300 -0.297
| (RMB/Share) |
| Diluted |
earnings pershare
-1.226 -0.424 -0.419 -192.60% -0.300 -0.297
| (RMB/Share) |
| Weighted |
average net
-34.29% -9.73% -9.60% -24.69% -5.68% -5.63%
2024/12/31
2023/12/31
Changecompared to theprevious year
2022/12/31Prior toadjustment
After adjustment After adjustment
Prior toadjustment
After adjustment
assets yieldGross assets(RMB)
45,815,896,140.58 46,181,979,851.06 46,517,731,929.05 -1.51% 44,459,650,119.11 44,918,710,936.65
| Gross assets (RMB) |
| Net assets |
attributable toshareholders ofthe listedcompany
11,887,217,861.48 17,009,969,496.07 17,208,525,613.69 -30.92% 18,789,151,216.62 17,186,714,934.88In the most recent three accounting years, the lower of the net profit before and after deducting non-recurring gains and losses hasbeen negative, and the audit report for the most recent year indicates uncertainty regarding the company's ability to continue as agoing concern
□Yes ?No
The lower of the net profit before and after deducting non-recurring gains and losses is negative?Yes □No
(RMB)Item
| Item | 2024 | 2023 | Notes |
| Operating income (RMB) | 51,266,361,501.22 | 57,957,301,717.02 | Total operating income |
Amount deducted fromoperating income (RMB)
4,271,862,046.64 5,383,378,945.20
subsidiary, North HengdaLogistics Co., Ltd., from thebeginning of the year to theconsolidation date, includingincome from the sale of rawmaterials, waste products, and
| services provided | ||
| Operating income after deductions (RMB) |
46,994,499,454.58 52,573,922,771.82
VII. Differences between CAS and IFRS
1. Differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese
accounting standards.
□Applicable ?Not applicable
There are no differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese accounting standardsduring the reporting period.
2. Differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese
accounting standards.
□Applicable ?Not applicable
There are no differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese accounting standardsduring the reporting period.
VIII. Key financial indicators by quarter
Unit：RMB
| First quarter | Second quarter | Third quarter | Fourth quarter |
Operation income 14,807,070,392.43 13,557,468,894.37 11,803,800,343.86 11,098,021,870.56
to the shareholders of
| the listed company |
-905,564,796.05 -645,385,341.66 -1,654,743,264.77 -1,831,577,995.80
deducting non-recurring gain/lossattributable to theshareholders of listed
| company |
-917,000,630.43 -704,651,975.49 -1,707,422,431.70 -1,892,526,786.01
generated by operating
| activities |
520,202,722.95 574,888,673.59 1,310,460,630.00 -1,305,264,032.29Whether the above financial indicators or their totals differ materially from the financial indicators disclosed in the company'spreviously released quarterly or semi-annual reports.
□Yes ?No
IX. Items and Amount of Non-recurring Profits and Losses
?Applicable □Not applicable
Unit：RMB
Item 2024 2023 2022 Notes
-35,999,024.90 298,940,955.41 3,648,546.62
| Gains and losses on disposal of non-current assets (including the write off part of the provision for impairment) |
| Government subsidy attributable to profit and loss of current |
period (except such government subsidy closely related to thecompany's normal business operation, meeting the regulation ofnational policy and enjoyed constantly in certain quota or
180,819,165.49 100,870,396.00 91,310,786.48
| quantity according to a certain standard) | ||||
| Profit or loss from investment or assets entrusted to others | -6,626,340.44 | 2,879,850.07 | ||
| Reversal of impairment provision for individually tested receivables |
18,456,201.45
16,120,746.07
| business combination. | ||||
| Gains and losses of debt restructuring | 6,459,490.86 | 5,200,982.08 | 1,274,270.98 | |
| Other non-operating income and expenses other than above | 40,152,707.29 | -51,690,430.09 | 13,785,641.70 | |
| Other profit and loss items that meet the definition of non-recurring gains and losses |
92,174,927.78
| Less: impact of income tax | 33,544,011.54 | 5,654,983.26 | 6,778,539.23 |
| impact of minority equity (after tax) | 8,134,849.37 | -143,533.59 | 391,139.95 |
Total184,330,425.35 341,184,113.29 197,904,344.45 --Specific circumstances of other items that meet the definition of non-recurring gains and losses:
□Applicable ?Not applicable
The company has no other specific circumstances that meet the definition of non-recurring gains and losses.Explanation of situations where non-recurring gains and losses items listed in the "Public Offering of Securities Information DisclosureExplanatory Notice No. 1 – Non-Recurring Gains and Losses" are defined as recurring gains and losses items.
□Applicable ?Not applicable
The company has no situations where non-recurring gains and losses items listed in the "Public Offering of Securities InformationDisclosure Explanatory Notice No. 1 –Non-Recurring Gains and Losses" are defined as recurring gains and losses items.
III. Management Discussion and Analysis
I. Industry Overview During the Reporting PeriodThe company operates in the steel industry, which is a fundamental sector of China’s national economy, a crucial support for buildinga modernized strong nation, and a key area for achieving green and low-carbon development.In 2024, the steel industry faced multiple challenges and opportunities. Influenced by global economic conditions, domestic policyadjustments, and shifts in market demand, the industry exhibited characteristics such as "high supply levels, demand structureadjustments, strong export growth, continuous price declines, and squeezed profitability."According to data from the National Bureau of Statistics, China's crude steel production in 2024 was 1.005 billion tons, a year-on-year decrease of 1.7%. Pig iron production was 852 million tons, decreased by 2.3% year-on-year, while steel production reached 1.4billion tons, increase by 1.1% year-on-year. The apparent consumption of crude steel was 892 million tons, marking a 5.4% year-on-year decline. This indicates that while steel production was somewhat controlled, the drop in consumption was significantly largerthan the decline in production, reinforcing the imbalance between strong supply and weak demand in the market.Steel exports surged, with total exports increasing by 22.7% year-on-year to a record high, although the total export value fell by 1.1%year-on-year. Meanwhile, steel imports declined by 10.9% year-on-year. The China Steel Price Index (CSPI) averaged 102.47 pointsin 2024, decrease of 8.39% year-on-year. The industry's overall profitability also declined, with the total profits of key steel enterprisesamounting to RMB 42.9 billion, reflecting a 50.3% year-on-year decrease.In 2024, the Chinese government and relevant authorities introduced policies such as the 2024–2025 Energy Conservation and CarbonReduction Action Plan and the Steel Industry Specification Conditions (2024 Revision) (Draft for Public Comment). These policiescontinued to implement crude steel output controls, promoted a higher proportion of electric arc furnace steelmaking and scrap steelutilization, and enhanced resource efficiency. Additionally, they introduced stricter environmental protection and technical standards,as well as comprehensive capacity upgrades and elimination requirements. These measures aim to push the steel industry toward high-end, intelligent, green, efficient, and safe development, thereby improving overall industry competitiveness and sustainability. Thepolicies are expected to have significant impacts, including driving industry transformation and upgrading, strengtheningenvironmental protection and resource utilization, enhancing product quality and standardization, influencing production capacitydistribution and market dynamics, optimizing tax policies and market mechanisms, and fostering international cooperation andcompetitiveness.II. Main Business Operations During the Reporting Period
1.Main Business, Main Products, and Their Uses
During the reporting period, the company's main business activities included steelmaking, rolling processing, power generation, coalchemical industry, special steel bar production, railway, import and export trade, scientific research, and product sales. The companyintroduced advanced global equipment technology to upgrade and transform the steel business, essentially establishing a premium steelbase. It developed a product series of over 60 varieties and more than 7,500 specifications, with a proportion of high value-added andhigh-tech content products reaching over 80%. Leading products such as automotive surface panels, home appliance panels, petroleumpipeline steel, container steel, and shipbuilding steel are widely used in industries such as automotive, home appliances, petrochemicals,aerospace, machinery manufacturing, energy and transportation, construction decoration, and metal products. These products are alsoexported to multiple countries and regions.
2.Business Model
Procurement Model: The company’s procurement model includes domestic and foreign procurement. Domestic procurement involvescollaborative purchasing, unified bidding (public, invitation), inquiry comparison, competitive bidding, negotiation, etc. Foreignprocurement is conducted through long-term agreements, direct procurement, public and invitation bidding, inquiry price comparison,competitive negotiation, and consulting procurement, mainly handled by Bensteel International Trade Company.Sales Model: The company’s sales are divided into domestic and export sales. Domestic sales mainly focus on futures sales, with saleschannels primarily including direct supply, circulation, and engineering, and contract orders are organized monthly in advance,followed by production based on the orders. Various pricing policies such as post-settlement futures, customized pricing per plant, andindex pricing are implemented based on different regions, channels, and industries. Export sales are managed by Bensteel InternationalTrade Company, with the company paying an agency fee for export services.
3.Main Performance Drivers
The company focuses on building a world-class enterprise, closely aligning with the strategic deployment of "focusing on five keyareas and pushing for three new breakthroughs." It fully implements the overall work requirements of "stabilizing, controlling, andimproving three aspects, while opening up five new areas." The company promotes the transformation and upgrading of “Reform +Lean” and “Digital + Technology.” It insists on making strategic implementation and brand building key tasks, strengthens the "sales,research, and production" linkage, and vigorously promotes the “one-consistent system” quality management across all processes. Thecompany is customer-centered, meeting user needs, and strengthening the construction of the industrial chain ecosystem. The companyfocuses on building the competitiveness of automotive steel brands and enhancing its core functions.By prioritizing technological innovation, the company accelerates its shift from "extensive" to "intensive" development, advancing thedevelopment of new productive forces, and continuously shaping new momentum and advantages. The company firmly focuses on the“Reform + Lean” transformation and upgrading, and pursues innovation with integrity, achieving deep efficiency transformation, whichhas led to remarkable results in production, operation, and enterprise reform.During the reporting period, the company’s main business and business model have not changed.III. Core Competence AnalysisThe company adheres to an innovation-driven approach and a "premium + service" development model, with strategic goals to buildan internationally competitive premium steel plate base, a leading domestic special steel base, and a comprehensive service provider.By playing a leading role in strategy, the company focuses on quality improvement, efficiency enhancement, product upgrades,technological innovation, and green and smart manufacturing. These efforts aim to innovate business management strategies, enhancecore competitiveness, and drive high-quality, green, and smart development.
1. Production and Manufacturing Capacity: The company focuses on efficiency, adhering to the strategic goal of leading development
in automotive steel. It aims to stabilize production, improve quality, reduce costs, and increase efficiency. The company is stronglyadvancing structural adjustments to production lines, increasing the proportion of efficient and high-quality production lines, andaddressing fluctuations in blast furnace performance. The company has gradually stabilized the blast furnace while maintaining highoutput. The integration of production and sales is strengthened, allowing for flexible adjustment of sales strategies. The direct supplyratio of automotive steel and sales to major automotive manufacturers are on the rise. The company continues to deepen "Lean + Basic"management, striving to achieve manufacturing and processing cost advantages over industry standards for key products.
2. Equipment Transformation and Upgrading: In 2024, the company approved a fixed asset investment plan of 1.945 billion yuan. The
company has implemented several key projects, including the transformation of the plate energy management center from steam drumto electric drum, supporting power grid renovation for the supercritical power generation project, and multiple dust removal systemupgrades for the blast furnace operation area and sintering systems. These projects represent a new round of large-scale technologicaltransformation and ultra-low emission upgrades.
3. New Product Development Capability: The company successfully developed 58 new product grades, achieving orders of 390,000
tons. It has overcome technical barriers in the hydrogen energy industry and developed hydrogen pipeline steel grades L245MH andL360MH, with excellent hydrogen resistance performance meeting Sinopec's technical specifications for hydrogen transmission. Thecompany also developed a 700MPa high-strength steel for photovoltaic brackets (GF700), which offers excellent formability and highwind resistance. Additionally, it achieved stable exports of hot-rolled pile pipe steel (HK490, HK400) to Japan, made breakthroughs inkey technologies for high-carbon, large-sized special steel products, and successfully rolled 0.8mm ultra-thin CP steel using a six-rollreversible mill.
4. Technological Innovation Capability: The company strengthens university-industry cooperation, signing 13 external technology
cooperation projects with institutions like Dalian University of Technology and Northeastern University, facilitating the transfer ofmature scientific and technological achievements to the company. The company has participated in the completion of one internationalstandard (ISO), one national standard, two industry standards, and two group standards. It has drafted 87 enterprise standards. Thecompany has filed 311 patent applications, including 20 overseas, and received 101 patents, with 32 being invention patents. In termsof scientific and technological achievements, the company has won 12 provincial and ministerial-level awards, including the secondprize of the National Science and Technology Progress Award for a project on electromagnetic regulation technology for large metalbillet preparation, and first and second prizes in metallurgical science and technology progress.
5. Green Development Capability: The company actively responds to national environmental protection policies, implementing 111
ultra-low emission projects to fulfill its environmental responsibilities. In 2024, the company successfully completed the "semi-steel"production path and achieved a 30% carbon reduction target, earning recognition as a "Best Practice Energy Efficiency BenchmarkEnterprise" under the "Double Carbon" initiative. It was also selected as a 2024 "Carbon Peak Leader" enterprise in China. Thecompany has also been actively promoting the recycling and utilization of by-products in the smelting industry and expanding itsphotovoltaic power generation projects, achieving more than 17 MW of grid-connected electricity.
6. Intelligent Manufacturing Capability: In 2024, the company focused on deep applications in projects like integrated control of plate
steel production, energy management, and smart material yards. The company achieved a saving of 177 million yuan in effectivenessand improved information security through intrusion prevention network construction. The company is advancing towards high-qualitydevelopment in line with the big data era. Guided by the core indicators of the 14th Five-Year Plan, the company is advancing theconstruction of automation, informatization, digitization, and intelligence, with an automation rate of key production line areas reaching96% and full coverage of production execution system construction. The completion rate of 3D job replacement, four-dimensionalproduction lines, and four-dimensional factories increased by 30%.
IV. Main Business Analysis
1. Overview
In 2024, faced with a challenging and complex market environment, the company firmly upheld the concept of excellence, strengthenedsystematic thinking, proactively planned, and responded positively, ensuring overall stability in production and operations. The annualoutput reached 9.88 million tons of pig iron, 10.72 million tons of crude steel, and 13.59 million tons of commercial steel. Keyachievements throughout the year are as follows:
The company fully advanced the enhancement of production and operational control capabilities. The ability to maintain efficient andstable production was further strengthened, and the adjustment of production line structures was vigorously promoted. The companysuccessfully overcame the persistent challenges in blast furnace fluctuations, ensuring high and steady output. The integration ofproduction and sales was further strengthened, allowing for flexible adjustment of sales strategies, optimizing resource allocation, anddeepening market penetration in regional markets, with a focus on national key projects and actively expanding markets for pipelinesteel and container steel. The ability to reduce costs and increase efficiency was also enhanced, adhering to the principle of "ensuringsurvival" through optimization of technical and economic indicators, ensuring new production lines reached expected capacity andefficiency, and optimizing the production line structure to maximize resource savings.The company made breakthroughs in industry transformation and upgrading. With a firm focus on high-quality development, thecompany promoted transformation and upgrading towards higher-end, intelligent, and green directions. Achievements in digitalizationincluded the establishment of a smart environmental protection and carbon data management platform, as well as the online collectionof LCA data. The company further deepened its digital infrastructure, and the integration of informatization and industrializationmanagement systems was evaluated at a 2A level. In terms of green and low-carbon development, the company pioneered the "50%scrap steel + electric furnace" low-carbon metallurgy process and launched cold-rolled galvanized automotive sheets as a green andlow-carbon product at the China Brand Expo. The company also initiated energy efficiency actions, eliminating outdated mechanicaland electrical equipment.The company continued to drive technological innovation. It achieved certification as a "National High-Tech Enterprise," and BenxiPOSCO was recognized as a "Liaoning Province Innovative SME." Significant progress was made in key process technologies, andscientific and technological achievements continued to rise. The company increased its efforts in new product development, with 58new product grades developed in 2024. The company focused on the development of products for China’s hydrogen energy industryand new energy industry, completing the development of various grades of precision tubing steel. In addition, efforts were made toimprove product certification, with 22 grades of soft steel, high-strength steel, and hot-stamping steel passing certification by HozonAuto, laying the foundation for supplying full vehicles.The company also made steady progress in enhancing reform and management capabilities. Under the guidance of the 14th Five-YearPlan, the company continued to improve market-oriented management and operational mechanisms, laying a solid foundation for high-quality development. Lean management capabilities were further strengthened, with plant-specific strategies and on-site evaluationsimplemented, reinforcing operational standardization and promoting precision management. Reform demonstration actions werefurther deepened, aligning organizational restructuring with corporate strategy, and enhancing management efficiency in operations,environmental protection, and digitalization. Risk control capabilities were strengthened, with efforts to secure national policy support,revitalize idle assets, and reinforce safety management through the "100-Day Action" campaign. Furthermore, daily environmentalsupervision, legal risk management, equipment precision enhancement, and audit supervision were all reinforced.
2. Operating Income and Operating Cost
(1) Breakdown of Operating Income
Unit：RMB
2024 2023Change over
last year
| Amount | Proportion | Amount | Proportion |
Total operatingincome
51,266,361,501.22 100%
57,957,301,717.02 100% -11.54%By industries
Industry
| Industry | 51,266,361,501.22 | 100.00% | 57,957,301,717.02 | 100.00% | -11.54% |
By product
| Steel plate | 50,063,324,955.34 | 97.65% | 55,988,417,376.02 | 96.60% | -10.58% |
| Others | 1,203,036,545.88 | 2.35% | 1,968,884,341.00 | 3.40% | -38.90% |
By region
| Domestic | 42,160,555,732.72 | 82.24% | 49,647,890,061.78 | 85.66% | -15.08% |
| International | 9,105,805,768.50 | 17.76% | 8,309,411,655.24 | 14.34% | 9.58% |
By sales model
| Direct selling | 30,551,325,723.59 | 59.59% | 39,218,786,088.06 | 67.67% | -22.10% |
| Distribution | 20,715,035,777.63 | 40.41% | 18,738,515,628.96 | 32.33% | 10.55% |
(2) Industries, products, regions, or sales models accounting for more than 10% of the company's revenue or
operating profit?Applicable □Not applicable
Unit：RMB
Operatingincome
Operating costs
Grossmargin
incomechange over
| last year | Operating |
costs change
over last
| year | Gross |
marginchange over
By industries
last yearIndustry
| Industry | 51,266,361,501.22 | 54,693,756,805.43 | -6.69% | -11.54% | -6.43% | -5.83% |
By product
| Steel plate | 50,063,324,955.34 | 53,477,611,508.35 | -6.82% | -10.58% | -5.37% | -5.89% |
| Others | 1,203,036,545.88 | 1,216,145,297.08 | -1.09% | -38.90% | -37.33% | -2.53% |
By region
| Domestic | 42,160,555,732.72 | 45,296,220,341.15 | -7.44% | -15.08% | -11.24% | -6.34% |
| International | 9,105,805,768.50 | 9,397,536,464.28 | -3.20% | 9.58% | 26.65% | -4.02% |
By sales model
| Direct selling | 30,551,325,723.59 | 32,496,042,825.90 | -6.37% | -22.10% | -17.68% | -5.72% |
| Distribution | 20,715,035,777.63 | 22,197,713,979.53 | -7.16% | 10.55% | 16.97% | -5.88% |
In the case where the statistical scope of the company's main business data has been adjusted during the reporting period, thecompany's main business data for the most recent year, adjusted according to the reporting period's scope.
□Applicable ?Not applicable
(3) Whether the company's physical sales revenue is greater than service revenue
?Yes □No
Industryclassification
Item Unit2024 2023
Change over
last yearSteel rollingprocessing
| industry | Sales volume | ton | 14,138,570.54 | 13,969,225.21 | 1.21% |
| Production volume | ton | 14,118,898.30 | 13,906,372.52 | 1.53% | |
| Inventory volume | ton | 389,800.00 | 409,472.24 | -4.80% |
Explanation of the reasons for a year-on-year change of more than 30%
□Applicable ?Not applicable
(4) The performance of major sales contracts and major procurement contracts signed by the company as of
the end of this report period
□Applicable ?Not applicable
(5) Breakdown of Operating Cost
Products classification
Unit：RMBIndustryclassification
Item2024 2023
Change
| year | ||||
| Amount | Proportion | Amount | Proportion |
Steel rollingprocessing
Rawmaterial
28,457,161,665.87 52.03% 30,657,207,929.57 52.45% -0.42%
| industry |
| Steel rolling |
processing
Supplementarymaterials
2,417,464,050.80 4.42% 2,320,478,846.15 3.97% 0.45%
| industry |
| Steel rolling |
processing
Spare partsand tools
661,794,457.35 1.21% 625,418,731.83 1.07% 0.14%
| industry |
| Steel rolling |
processing
Fuel17,283,227,150.52 31.60% 18,324,184,339.22 31.35% 0.25%Steel rollingprocessing
| industry |
| industry |
Energy2,357,300,918.31 4.31% 2,489,984,857.58 4.26% 0.05%
processing
| industry |
Salary andbenefits
1,422,037,676.94 2.60% 1,776,890,602.59 3.04% -0.44%
processing
| industry |
Depreciation
1,635,343,328.48 2.99% 1,823,650,881.61 3.12% -0.13%
processing
| industry |
Others459,427,557.17 0.84% 432,532,580.89 0.74% 0.10%Steel rollingprocessing
Total54,693,756,805.43 100.00% 58,450,348,769.43 100.00% 0.00%NoteNone
(6) Whether there were any changes in the consolidation scope during the reporting period
?Yes □NoOn December 23, 2024, the company held the 31st meeting of the 9th Board of Directors, where the proposal regarding the acquisitionof equity in North Hengda Logistics Co., Ltd. was reviewed and approved. The company agreed to acquire 100% of the equity in NorthHengda Logistics Co., Ltd. held by Benxi Steel Group Co., Ltd. in cash. After the completion of this transaction, Hengda Logisticsbecame a wholly-owned subsidiary of the company and was included in the scope of the company's consolidated financial statements.The business registration procedures were completed on December 25, 2024.
(7) Significant changes or adjustments in the Company’s business, products, or services during the
reporting period
□Applicable ?Not applicable
(8) Information of Main Customers and Main Suppliers
Information of Main Customers
industryTotal sales amount of the top five customers (Yuan)
| Total sales amount of the top five customers (Yuan) | 9,861,558,536.01 |
| Total sales amount of the top five customers accounted for the proportion of total annual sales |
19.24%
| The proportion of the total sales of the related parties in the top five customers |
6.14%
Information of the top 5 customers
| No | Name | Amount (Yuan) | Proportion |
3,147,919,354.04 6.14%
China North Industries Group
| Delin Land Port Supply Chain Service Co., Ltd. |
| (Shanghai) Co., Ltd. |
2,431,466,454.47 4.74%
1,886,454,329.54 3.68%4 Hailian Jinhui Technology Co., Ltd. 1,281,564,773.31 2.50%5 Ningbo AUX Trade Co., Ltd. 1,114,153,624.65 2.17%Total -- 9,861,558,536.01 19.24%Other information of principal customers
□Applicable ?Not applicable
Information of the Company’s main suppliers
Haining Tengchuang New MaterialsTechnology Co., Ltd.Total purchase amount of the top five suppliers (Yuan)
| Total purchase amount of the top five suppliers (Yuan) | 24,831,267,185.88 |
| Total purchase amount of the top five suppliers accounted for the proportion of total purchase |
45.40%
36.71%
Information of the top 5 suppliers
The proportion of the total purchase of the related parties in thetop five suppliersNo.
| No. | Name | Amount (Yuan) | Proportion |
Benxi Beiying Steel & Iron
12,984,510,675.06 23.74%
| (Group) Co., Ltd. |
| Benxi Steel & Iron (Group) Mining Co., Ltd. |
4,591,090,218.87 8.39%
Ltd. Benxi Electric Power
| Supply Company |
2,575,333,402.40 4.71%
Liaoyang Ma'erling Pellet
| Co., Ltd. |
2,504,269,802.79 4.58%
Heilongjiang Dragon Coal
2,176,063,086.76 3.98%Total --24,831,267,185.88 45.40%Other information of principal suppliers
□Applicable ?Not applicable
3. Expense
Unit：RMB
2024 2023
Group Co., Ltd.
Change over
last year
| Change over last year | Notes to significant change |
Selling and distributionexpenses
142,638,617.77 149,659,100.28 -4.69%General andadministrativeexpenses
702,788,411.83 619,677,417.05 13.41%Financial Expenses 240,331,316.82 308,033,042.23 -21.98%Research andDevelopment Expenses
86,415,509.29 81,247,560.73 6.36%
4. Research and Development Input
?Applicable ?Not applicable
Name of Project Project Objective Project Progress Expected Target Expected Impact
Development andApplication of CoalBlending StructureOptimization andControl TechnologyBased on AssociatedCoal QualityExpansion
Based on the researchof 25 types ofcomplex coking coalquality characteristicsused by Bensteel, theaim is to establish therelationship betweenthe expansion andrheologicalcharacteristics ofcoking coal and itscoking ability. Thegoal is to identify howchanges in theinherent expansionand rheologicalcharacteristics ofcoking coal impactkey indicators such ascoke CSR.
basic experimentalphase. 20 singlecoal samples,including maincoking coal, fatcoal, one-thirdcoking coal, andlean coal, havebeen collected.Comparativeanalysis of coalquality, especiallyexpansion degree,has been conductedand basic coalquality dataaccumulated,resulting in threeblending schemesto guide coke
| production. | Focused on the |
high-temperaturebonding propertiesof 25 types ofproduction cokingcoal, developingblending researchfor low-cost coaland new resourcedevelopment, aswell as controllingcoke particle sizeuniformity. Theoptimization ofblending structure isexpected to reduceblending costs by 2RMB per ton ofcoke, resulting incost savings of over7 million RMB
Stabilizing cokequality andreducing blendingcosts.
Study on HydrogenPermeation Behaviorand HydrogenEmbrittlementMechanism of 980MPaGrade MediumManganese Steel
To systematicallystudy the hydrogendiffusion andpermeation behaviorand hydrogen damageperformance of980MPa grademedium manganesesteel, establishing thecorrelation betweenhigh-strength steelmicrostructure (phasecomposition, grainsize, etc.) andhydrogenembrittlementsensitivity.
The small furnacesmelting processhas beencompleted, andlaboratory hotrolling processeshave beendeveloped.Subsequent heattreatment processesare completed, andhydrogenembrittlementexperimentaldesign andpreparations areunderway.
Analyze steelsamplemicrostructuresusingmetallography,SEM, and EDSmethods to comparetheir hydrogenpermeationproperties. The goalis to identifyadvanced high-strength steel phasesresponsible forhydrogenpermeationperformance and toanalyzemicrostructuralcharacteristics thatmitigate hydrogen
| annually. |
| embrittlement. |
Providing datasupport forimprovinghydrogenembrittlementresistance inautomotive high-strength steels,guiding futuredesign andoptimization toextend componentlifespan.
Development of Hot-Rolled Coil for X52Hydrogen Pipeline
production technologyof X52 grade hot-rolled coil forhydrogen pipelines,conduct R&D, andindustrial trial
| production to meet | X52 grade pure |
hydrogen pipelinesteel has been trial-produced. Themechanicalperformance of thepipe body meets all
| inspection | Achieve industrial |
trial production ofX52 grade hydrogenpipelines (withdiameter≥Φ460mm, pressure≥6.3MPa, wall
| thickness ≥12.7mm, | Supporting |
national low-carbon greendevelopmentstrategy,establishingmanufacturing
performancerequirements.
| hydrogen resistance | requirements, and |
hydrogenresistanceperformanceevaluation isongoing.
≥99.9%). Themechanical andprocessperformance willmeet DECstandards, andhydrogen resistanceperformance willmeet therequirements of ahydrogenembrittlementsensitivity index≤30%, and fracturetoughness
| ≥55MPa·m1/2.2 |
。
| reserves for pure |
hydrogenpipelines, andenabling Bensteelto position itselfin the new energymarket.
Revision ofInternational Standardfor Determining IronContent in ManganeseOre and ManganeseConcentrates by FlameAtomic AbsorptionSpectrometry
To develop theinternational standardfor determining ironcontent in manganeseore and concentratesusing flame atomicabsorptionspectrometry. Thisstandard will specifythe applicable scope,principle, reagents,equipment, testingsteps, resultcalculation, and testreport.
internationalstandarddevelopmenttimeline, internalprecisionverificationexperiments havebeen completed,and the standarddraft has beensubmitted to theInternationalOrganization forStandardization(ISO) at the WD(Working Draft)stage. Aftercompleting internalverification, inter-laboratoryprecisionverificationexperiments wereconducted, with 2foreign laboratoriesand 12 domesticlaboratories
| participating. |
The internationalstandard fordetermining ironcontent inmanganese ore andconcentrates byflame atomicabsorptionspectrometry will bepublished andimplemented.
As China is thelargest importer ofmanganese oreand concentratesglobally, leadingthe developmentof internationalstandards for ironcontent detectionwill strengthenChina’s influencein the ferroalloyfield and protectthe rights ofdomesticmanganese oreimporters ininternationaltrade.
Company R&D Personnel Information
2024 2023 Change over last yearNumber of R&D Personnel(persons)
1,370 1,456 -5.91%Percentage of R&D Personnel
10.43% 10.12% 0.31%Educational Structure of R&D PersonnelBachelor's Degree 936 1,090 -14.13%Master's Degree142 152 -6.58%
Age Structure of R&D PersonnelUnder 30 years old73 75 -2.67%30-40 years old 354 452 -21.68%R&D Investment Overview
2024 2023 Change over last yearR&D Investment Amount (inRMB)
1,595,660,007.17 1,787,193,677.09 -10.72%R&D Investment as aPercentage of Operatingrevenue
3.11% 3.08% 0.03%Amount of R&D InvestmentCapitalized (in RMB)
0.00 0.00 0.00%Capitalized R&D Investmentas a Percentage of Total R&DInvestment
0.00% 0.00% 0.00%Reasons for Significant Changes in R&D Personnel Composition and Impact
□Applicable ?Not applicable
Reasons for Significant Changes in the Proportion of R&D Investment to Operating Income Compared to the Previous Year
□Applicable ?Not applicable
Reasons for the Significant Change in Capitalization Rate of R&D Investment and Explanation of Its Reasonableness
□Applicable ?Not applicable
5. Cash Flow
Unit：RMBItem 2024 2023
Change over lastyear
| Subtotal of cash inflows from operating activities | 56,354,930,509.54 | 55,578,037,984.00 | 1.40% |
| Subtotal of cash outflows from operating activities |
55,254,642,515.29 51,231,804,102.77 7.85%
| Net cash flows from operating activities | 1,100,287,994.25 | 4,346,233,881.23 | -74.68% |
| Subtotal of cash inflows from investing activities | 137,069,554.37 | 87,797,599.66 | 56.12% |
| Subtotal of cash outflows paid for investing activities |
975,204,696.55 994,821,507.90 -1.97%
| Net cash flows from investing activities | -838,135,142.18 | -907,023,908.24 | 7.60% |
| Subtotal of cash inflows from financing activities | 7,573,123,889.76 | 2,778,395,091.10 | 172.57% |
| Subtotal of cash outflows from financing activities |
7,497,684,459.06 6,348,054,743.09 18.11%
| Net cash flows from financing activities | 75,439,430.70 | -3,569,659,651.99 | 102.11% |
| Net increase in cash and cash equivalents | 390,519,810.53 | -96,978,218.41 | 502.69% |
Explanation of Major Impact Factors for Significant Year-on-Year Changes?Applicable ?Not applicable
(1) The net cash flow from operating activities decreased by 74.68% compared to the previous period, mainly due to a decrease in cash
receipts from sales.
(2) The total cash inflow from investing activities increased by 56.12% compared to the previous period, primarily due to higher cash
proceeds from asset disposals.
(3) The total cash inflow from financing activities increased by 172.57% compared to the previous period, mainly due to an increase
in borrowings.
(4) The net cash flow from financing activities increased by 102.11% compared to the previous period, primarily due to an increase in
borrowings.
(5) The net increase in cash and cash equivalents increased by 502.69% compared to the previous period, mainly due to the increase in
cash received from asset disposals and the increase in borrowings.
Explanation of the significant difference between the net cash flow generated from operating activities and the net profit for thereporting period.?Applicable ?Not applicable
| Item | Current Year Amount |
| Adjust Net Profit to Operating Cash Flow: | |
| Net Profit | -4,960,117,417.26 |
| Add: Asset Impairment Loss | 278,486,334.42 |
| Credit Impairment Loss | -50,143,005.20 |
| Depreciation of Fixed Assets, Depletion of Oil and Gas Assets, Depreciation of Productive Biological Assets |
1,635,677,342.74
| Amortization of Right-of-Use Assets | 77,920,658.71 |
| Amortization of Intangible Assets | 9,634,760.52 |
Amortization of Long-term Deferred Expenses
| Loss on Disposal of Fixed Assets, Intangible Assets, and Other Long-term Assets (gain indicated by “-”) |
-13,020,778.49
| Loss on Fixed Asset Retirement (gain indicated by “-”) | 49,019,803.39 |
| Fair Value Change Loss (gain indicated by “-”) | |
| Financial Expenses (gain indicated by “-”) | 272,427,588.47 |
| Investment Loss (gain indicated by “-”) | 42,967,621.92 |
| Decrease in Deferred Income Tax Assets (increase indicated by “-”) | 93,801,445.51 |
| Increase in Deferred Income Tax Liabilities (decrease indicated by “-”) | -77,015,188.35 |
Decrease in Inventory (increase indicated by “-”)
| 157,980,745.75 | |
Decrease in Operating Receivables (increase indicated by “-”)
| 1,927,753,242.95 | |
Increase in Operating Payables (decrease indicated by “-”)
| 1,654,268,244.56 | |
Others
| 646,594.61 | |
| Net Cash Flow from Operating Activities | 1,100,287,994.25 |
V. Analysis of Non-core Business?Applicable ?Not applicable
Unit：RMBAmount
Proportion in
total profit
Explanation of cause
WhethersustainableCredit impairment loss(losses are marked with a "-")
50,143,005.20 -1.03%
Mainly for the reversal ofimpairment provision for
No
Investment income (lossesare marked with a "-")
-42,967,621.92 0.88%
| accounts receivable. |
| Mainly due to the interest |
from the discounting of bankacceptance bills andinvestment income from long-term equity investmentsaccounted for using the equity
No
| method. | ||
| Asset impairment loss (losses are marked with a "-") |
-278,486,334.42 5.72%
NoOther income 200,140,947.91 -4.11%
| For the provision for inventory impairment. |
| Mainly for government subsidy gains. |
NoNon-operating income 45,789,122.58 -0.94%
Mainly for gains from the
No
Non-operating expenses 54,707,998.74 -1.12%
| and insurance compensation. |
| Mainly for the losses from the disposal of non-current assets. |
No
VI. Assets and Liabilities
1. Significant Change of Assets Components
Unit：RMB
Ending balance of 2024 Beginning balance of 2024
Proportionchange
significa
nt
| change |
Amount
Proportion inthe total assets
Amount
Proportion inthe total assetsCash and cashequivalents
2,453,888,470.48 5.36% 2,210,057,475.05 4.75% 0.61%
Accountsreceivable
501,484,081.73 1.09% 1,329,347,134.49 2.86% -1.77%
| Accounts receivable | ||||||
| Inventories | 7,333,084,694.27 | 16.01% | 7,769,551,774.44 | 16.70% | -0.69% | |
| Long-term |
equity
45,413,221.72 0.10% 46,910,346.41 0.10%Fixed assets26,426,320,453.57 57.68%
| investment | ||
| 25,174,210,887.76 |
54.12% 3.56%
3,934,442,501.50 8.59% 4,308,404,147.31 9.26% -0.67%Right of useasset
1,685,925,710.14 3.68% 1,319,616,179.37 2.84% 0.84%Short-termloans
371,055,490.50 0.81% 328,000,000.00 0.71% 0.10%Contractliability
2,908,598,425.73 6.35% 3,318,451,501.35 7.13% -0.78%Long-termloans
2,891,941,462.40 6.31% 1,723,726,700.80 3.71% 2.60%Lease liability 1,633,911,586.51 3.57% 1,342,427,252.45 2.89% 0.68%The proportion of foreign assets is high?Applicable ?Not applicable
2. Assets and Liabilities Measured at Fair Value
?Applicable ?Not applicable
Unit：RMBItem
Beginning
balance
Construction inprocess
Profit and
loss fromchanges infair value
in thecurrent
| period |
Accumulated fairvaluechangesrecognised
in equity
Impairm
entaccrued
in thecurrentperiod
Amountpurchased in thecurrentperiod
Amountsold in
thecurrentperiod
Otherchange
s
EndingbalanceFinancial assetsOtherequityinstrumentsinvestment
974,463,039.
-122,613,267.
933,426,2
54.63
Total
974,463,039.
-122,613,267.
933,426,2
54.63
| 37 | ||
| Financial liabilities |
0.00 0.00 0.00
Other changesWhether there has been a significant change in the measurement attributes of the company's main assets during the reporting period
□Yes ?No
3. Restricted Assets by the End of the Period
| Item | Ending balance | Why asset is restricted |
| Cash and cash equivalents | 863,683,251.57 | Bill margin, letter of credit margin |
| Notes receivable | 165,968,800.17 | Pledge |
VII. Analysis on Main Subsidiaries and Share Participating Companies
1. Overview
?Applicable ?Not applicable
2. Significant equity investment obtained during the reporting period
?Applicable ?Not applicable
Unit：RMBInves
tedcomp
anyname
Mainbusin
ess
Acquisitio
nmeth
od
Investmentamou
nt
Shareholdi
ngratio
Fundi
ngsourc
e
Partn
ers
Investmentdurati
on
Producttype
Progress asof thebalan
cesheetdate
Expectedretur
n
Investmentprofit
orlossfortheperio
d
Invol
veslitigat
ion
Disclosuredate
(ifany)
Disclosureindex
(ifany)
NorthHengdaLogisticsCo.,Ltd.
Steelrollingprocessing,etc.
Acquisition
196,619,54
4.86
100.0
0%
Ownfund
None
Long-term
Equityinvestment
Equityacquisitioncompleted
0.00
16,120,746
.07
None
December24,2024
AnnouncementontheAcquisition ofEquity inNorthHengdaLogisticsCo.,Ltd.and
| Relat |
Transactions(Announcement No.2024-
| 073) |
Total -- --
19,54
| 4.86 |
-- -- -- -- -- --
0.00
0,746
| .07 |
-- -- --
3. Major non-equity investments ongoing during the reporting period.
?Applicable ?Not applicable
4. Financial asset investments
(1) Securities investment
?Applicable ?Not applicableThe company did not have any securities investments during the reporting period.
(2) Derivative investment situation
?Applicable ?Not applicableThe company did not have any derivative investments during the reporting period.
5. Use of raised funds
?Applicable ?Not applicable
(1) Use of Raised Funds
?Applicable ?Not applicable
Unit：RMB
Fundraisin
gYear
Fundraisin
gMetho
d
Securi
tiesListin
g
Date
TotalRaise
dFunds
NetRaise
dFunds
(1)
TotalFundsUsedin theCurre
ntPeriod
CumulativeFundsUsed
(2)
FundUsageRatioat theEndof theRepor
tingPeriod
(3) =
(2) /
(1)
TotalFundsRedirectedDuring theRepor
tingPeriod
CumulativeRedirectedFunds
CumulativeRedirectedFundsRatio
TotalUnuse
dRaise
dFunds
Purpose andDestination
ofUnuse
dFunds
Amount ofFunds
IdleforMoreThanTwoYears2020
Issueofconve
August 4,2020
680,0
675,9
11,19
1.83
487,4
23.37
72.11
%
0 0 0.00%
188,4
96.63
Notapplicable
101,4
Total -- --
| bonds | ||||||
| 680,000 | 675,920 | 11,191.83 | 487,423.37 | 72.11% |
0 0 0.00%
--
| 188,496.63 | 101,479 |
Explanation of the overall use of raised funds
The actual use of the funds raised in 2024 is detailed in the attached table "Comparison Table of the Use of Funds Raised byPublic Issuance of Convertible Bonds."
2. Changes in the Implementation Location or Method of Investment Projects
During the reporting period, there were no changes in the investment projects funded by the raised funds, nor were there anychanges in their implementation locations or methods.
3. Initial investment and replacement of raised funds investment projects
approved the "Proposal on Using Raised Funds to Replace Self-raised Funds Pre-invested in Raised Fund Investment Projects andPaid Issuance Expenses", agreeing that the company will use raised funds to replace self-raised funds pre-invested in raised fundsinvestment projects and paid issuance expenses, with a total replacement amount of RMB 366,180,860.17. This replacement doesnot involve a disguised change in the use of raised funds, does not affect the normal progress of raised funds investment projects,and the replacement time is no more than 6 months from the time the raised funds arrive, which is in compliance with relevant lawsand regulations.Before the raised funds were received, the company had used self-raised funds to pre-invest in the raised projects according to theproject progress. As of May 31, 2020, the amount of self-raised funds pre-invested was RMB 365,630,860.17, including the steelplant No. 8 casting machine project was RMB 76,278,945.59, the iron plant No. 5 blast furnace capacity replacement project wasRMB 119,043,290.09, the special steel electric furnace upgrade and transformation project was RMB 59,948,807.90, the CCPPpower generation project was RMB 95,098,084.16, and the steel plant No. 4-6 converter environmental protection transformationproject was RMB 15,261,732.43. As of July 6, 2020, the above-mentioned issuance expenses of RMB 55,000.00 paid by thecompany's own funds were replaced with raised funds.From March 1, 2019 to May 31, 2021, the company used self-raised funds to pay for the construction of projects funded by theraised funds, amounting to RMB 1,082,356,809.47, including RMB 180,000.00 for the high-grade high-magnetic induction non-oriented silicon steel project, RMB 55,364,729.08 for the No. 8 casting machine project of the steelmaking plant, RMB628,049,033.12 for the capacity replacement project of the No. 5 blast furnace of the ironmaking plant, RMB 253,298,156.22 forthe upgrading and transformation project of the special steel electric furnace, RMB 115,353,050.36 for the CCPP power generationproject, and RMB 30,111,840.69 for the environmental protection transformation project of the No. 4-6 converters of the steelmakingplant. The company has transferred the above amounts from the raised funds account to the general deposit account in 2021.From June 1, 2021 to May 31, 2022, the company used self-raised funds to pay for the construction of projects funded by the raisedfunds, amounting to RMB 614,208,698.23, including: RMB 12,881,890.61 for the No. 8 Casting Machine Project of the SteelmakingPlant, RMB 17,508,088.97 for the Capacity Replacement Project of the No. 5 Blast Furnace of the Ironmaking Plant, RMB364,155,482.35 for the Upgrading and Reconstruction Project of the Special Steel Electric Furnace, RMB 186,441,497.75 for theCCPP Power Generation Project, and RMB 33,221,738.55 for the Environmental Protection Reconstruction Project of the No. 4 andNo. 6 Converters of the Steelmaking Plant. The company has transferred the above amounts from the raised funds account to thegeneral deposit account in 2022.From June 1, 2022 to May 31, 2023, the company used self-raised funds to pay for the construction of the raised funds investmentprojects, amounting to RMB 494,502,583.01, of which RMB 15,316,136.52 was used for the capacity replacement project of No. 5blast furnace of the ironmaking plant, RMB 19,796,661.74 for the CCPP power generation project, RMB 429,392,157.76 for theupgrading and transformation project of the special steel electric furnace, RMB 21,452,968.70 for the environmental protectiontransformation project of No. 4-6 converters of the steelmaking plant, and RMB 8,544,658.29 for the No. 8 casting machine projectof the steelmaking plant. As of December 31, 2023, the company has transferred the funds from the raised funds account to thegeneral deposit account.From June 1, 2023 to May 31, 2024, the company used self-raised funds to pay for the construction of the raised investment projects,amounting to RMB 102,185,736.55, of which RMB 24,887,030.75 was used for the No. 8 casting machine project of the steelmakingplant, RMB 5,111,121.59 for the capacity replacement project of the No. 5 blast furnace of the ironmaking plant, RMB60,162,375.13 for the upgrading and transformation project of the special steel electric furnace, RMB 5,454,868.60 for the CCPPpower generation project, and RMB 6,570,340.48 for the environmental protection transformation project of the No. 4-6 convertersof the steelmaking plant. As of December 31, 2024, the company has transferred the funds from the raised funds account to thegeneral deposit account.
4. Using idle raised funds to temporarily supplement working capital
During the reporting period, according to the construction progress of the company's raised funds investment projects and the planfor the use of raised funds, part of the funds raised by the company's non-public offering is temporarily idle. According to theprovisions of the China Securities Regulatory Commission's "Guidelines for the Supervision of Listed Companies No. 2 - RegulatoryRequirements for the Management and Use of Raised Funds by Listed Companies (Revised in 2022)" (CSRC Announcement [2022]No. 15) and other regulatory documents, in line with the principle of maximizing shareholder interests, on the premise of ensuringthe capital demand of the raised funds investment projects and the normal progress of the raised funds investment projects, in orderto improve the efficiency of the use of raised funds, further reduce the company's financial costs, reduce financial expenditures, andprotect the interests of the majority of investors, the company intends to use idle raised funds to temporarily supplement workingcapital, and the use period shall not exceed 12 months from the date of approval by the board of directors. Supplementing workingcapital will save financial expenses for the company.
| (1) The funds raised from the public issuance of convertible corporate bonds in July 2020 will temporarily supplement working |
The company used idle raised funds of RMB4,180,000,000.00 (RMB1,010,000,000.00 for high-grade and high-magnetic inductionnon-oriented silicon steel project, RMB220,000,000.00 for the No. 8 casting machine project of the steel plant, RMB800,000,000.00for the capacity replacement project of No. 5 blast furnace of the iron plant, RMB1,300,000,000.00 for the special steel electricfurnace upgrading and renovation project, RMB700,000,000.00 for the CCPP power generation project, and RMB150,000,000.00for the environmental protection renovation project of No. 4-6 converters of the steel plant) to temporarily supplement workingcapital. The matter was reviewed and approved at the 14th meeting of the 8th Board of Directors and the 12th meeting of the 8thBoard of Supervisors held on July 28, 2020. The company's independent directors have expressed their clear consent. The time forsupplementing working capital shall not exceed 12 months.The sponsor of the company's public issuance of convertible corporate bonds agreed that the company could use idle raised fundsto temporarily supplement working capital and issued the "Guotai Junan Securities Co., Ltd.'s Verification Opinion on the Company'sUse of Idle Raised Funds to Temporarily Supplement Working Capital".As of July 27, 2021, the Company has returned all of the idle raised funds of RMB 4,180,000,000.00 used to temporarily supplementworking capital to the Company's special account for raised funds.
(2) The funds raised from the public issuance of convertible corporate bonds in July 2021 will temporarily supplement working
capitalThe company used idle raised funds of RMB 3,030,000,000.00 (RMB 1,010,000,000.00 for high-grade and high-magnetic inductionnon-oriented silicon steel project, RMB 150,000,000.00 for the No. 8 casting machine project of the steel plant, RMB160,000,000.00 for the capacity replacement project of No. 5 blast furnace of the iron plant, RMB 1,000,000,000.00 for the specialsteel electric furnace upgrade and renovation project, RMB 590,000,000.00 for the CCPP power generation project, and RMB120,000,000.00 for the environmental protection renovation project of No. 4-6 converters of the steel plant) to temporarilysupplement working capital. The matter was reviewed and approved at the 19th meeting of the 8th Board of Directors and the 17thmeeting of the 8th Board of Supervisors held on July 28, 2021. The company's independent directors have expressed their clearconsent. The time for replenishing working capital shall not exceed 12 months.The sponsor of the company's public issuance of convertible corporate bonds agreed that the company could use idle raised fundsto temporarily supplement working capital and issued the "Guotai Junan Securities Co., Ltd.'s Verification Opinion on the Company'sUse of Idle Raised Funds to Temporarily Supplement Working Capital".As of December 31, 2021, the Company has returned all of the idle raised funds of RMB3,030,000,000.00 used to temporarilysupplement working capital to the Company's special account for raised funds.
(3) The funds raised from the public issuance of convertible corporate bonds in July 2022 will temporarily supplement working
capitalThe company used idle raised funds of RMB 3,014,000,000.00 (RMB 1,015,000,000.00 for high-grade and high-magnetic inductionnon-oriented silicon steel project, RMB 165,000,000.00 for the No. 8 casting machine project of the steel plant, RMB175,000,000.00 for the capacity replacement project of No. 5 blast furnace of the iron plant, RMB 933,000,000.00 for the specialsteel electric furnace upgrade and renovation project, RMB 578,000,000.00 for the CCPP power generation project, and RMB148,000,000.00 for the environmental protection renovation project of No. 4-6 converters of the steel plant) to temporarilysupplement working capital. The matter was reviewed and approved at the third meeting of the ninth board of directors and the thirdmeeting of the ninth board of supervisors held on July 28, 2022. The company's independent directors have expressed their clearconsent. The time for replenishing working capital shall not exceed 12 months.The sponsor of the company's public issuance of convertible corporate bonds agreed that the company could use idle raised fundsto temporarily supplement working capital and issued the "Guotai Junan Securities Co., Ltd.'s Verification Opinion on the Company'sUse of Idle Raised Funds to Temporarily Supplement Working Capital".
(4) The funds raised from the public issuance of convertible corporate bonds in July 2023 will temporarily supplement working
capital.The company used idle raised funds of RMB 1,961,200,000.00 (RMB 1,015,000,000.00 for high-grade and high-magnetic inductionnon-oriented silicon steel project, RMB 125,000,000.00 for the No. 8 casting machine project of the steel plant, RMB145,000,000.00 for the capacity replacement project of No. 5 blast furnace of the iron plant, RMB 188,000,000.00 for the specialsteel electric furnace upgrade and renovation project, RMB 393,200,000.00 for the CCPP power generation project, and RMB
| 95,000,000.00 for the environmental protection renovation project of No. 4-6 converters of the steel plant) to temporarily supplement |
the 9th Board of Supervisors held on July 19, 2023. The company's independent directors have expressed their clear consent. Thetime for supplementing working capital shall not exceed 12 months.The sponsor of the company's public issuance of convertible bonds agreed that the company could use idle raised funds totemporarily supplement working capital and issued the "Guotai Junan Securities Co., Ltd.'s Verification Opinion on the Company'sUse of Idle Raised Funds to Temporarily Supplement Working Capital".
(5) The funds raised from the public issuance of convertible corporate bonds in July 2024 will temporarily supplement working
capital.The company used idle raised funds of RMB 1,860,000,000.00 (RMB 1,015,000,000.00 for high-grade and high-magnetic inductionnon-oriented silicon steel project, RMB 100,000,000.00 for the No. 8 casting machine project of the steel plant, RMB140,000,000.00 for the capacity replacement project of No. 5 blast furnace of the iron plant, RMB120,000,000.00 for the specialsteel electric furnace upgrade and renovation project, RMB 397,000,000.00 for the CCPP power generation project, and RMB88,000,000.00 for the environmental protection renovation project of No. 4-6 converters of the steel plant) to temporarily supplementworking capital. The matter was reviewed and approved at the 26th meeting of the 9th Board of Directors and the 17th meeting ofthe 9th Board of Supervisors held on July 18, 2024. The company's independent directors have expressed their clear consent. Thetime for supplementing working capital shall not exceed 12 months.The sponsor of the company's public issuance of convertible bonds agreed that the company could use idle raised funds totemporarily supplement working capital and issued the "Guotai Junan Securities Co., Ltd.'s Verification Opinion on the Company'sUse of Idle Raised Funds to Temporarily Supplement Working Capital".As of December 31, 2024, the company used idle funds raised from the public issuance of convertible corporate bonds to temporarilysupplement the balance of RMB1,860,000,000.00 in working capital.
5. Cash management using idle raised funds
The company did not use idle raised funds for cash management during the reporting period.
6. Use of surplus raised funds
The company does not use the surplus funds from the raised funds investment projects for other raised funds investment projects ornon-raised funds investment projects.
7. Utilization of excess funds
The company does not have any situation of over-using raised funds.
8. Purpose and destination of unused raised funds
As of December 31, 2024, except for the advance investment and replacement of investment projects with raised funds and thetemporary supplement of working capital with idle raised funds as described in “3. Initial investment and replacement of raisedfunds investment projects” and “4. Using idle raised funds to temporarily supplement working capital”, the remaining raised fundswill be temporarily deposited in the special account for raised funds.
9. Other Situations Regarding the Use of Raised Funds
| The company did not have any other situations regarding the use of raised funds. |
(2) Fundraising commitments
?Applicable ?Not applicable
Unit：RMBFinan
Secur
| cing | ities |
Com
Proje
| mitte | ct |
If the
Total
| Proje | Com |
Adju
Inves
| sted | tment |
Cum
Inves
| ulativ | tment |
Proje
Bene
| ct | fits |
Cum
Expe
| ulativ | cted |
Has
ctNam
e
| Proje | Listin |
gDate
InvestmentProje
ctsandExcessiveFundAllocation
| d | Natur |
e
BeenChanged(IncludingPartia
lChanges)
| ct | mitte |
dInvestmentAmo
unt
InvestmentAmo
unt(1)
| Total | Amo |
untfortheReportingPeriod
InvestmentAmo
untbytheEndof thePeriod (2)
| e | Progr |
essbytheEndof thePeriod (3)=
(2)/(1
)
hedPredeterminedUsableStatusDate
| Reac | Achi |
evedin theReportingPerio
d
BenefitsAchieved
bytheEndof thePerio
d
| e | Bene |
fitsAchieved
aMajorChange inProje
ctFeasibilityCommitted Investment Projects
BenGangConvertibleBonds
August 4,2020
High-gradehighmagneticinductionnon-orientedsiliconsteelproje
Been
ct
Manufacturingconstruction
No
101,6
101,6
0.00
141.0
0.14
%
0 0
Notapplicable
No
BenGangConvertibleBonds
August 4,2020
| ct |
| Steel |
plantNo. 8castingmachineproje
Manufacturingconstruction
No
33,50
33,50
3,037
.60
22,72
6.00
67.84
%
Octo
ber31,2020
-58,15
8.08
-19,62
9.07
No No
BenGangConvertibleBonds
August 4,2020
| ct |
| Blast |
furnaceNo. 5capacityreplacementproje
Manufacturingconstruction
No
96,00
96,00
745.5
80,91
2.52
84.28
%
November
30,2020
-44,73
7.76
-5,689.76No No
BenGangConvertibleBonds
August 4,2020
| ct |
| Speci |
alsteelelectricfurnaceupgrade
Manufacturingconstruction
No
141,6
141,6
6,017
.62
129,0
42.92
91.13
%
0 0
Notapplicable
No
BenGangConvertibleBonds
August 4,2020
| ct |
| CCP |
Ppowergenerationproje
Manufacturingconstruction
No
83,30
83,30
587.9
43,42
2.78
52.13
%December31,2020
23,48
7.22
50,52
5.39
Yes No
BenGangConvertibleBonds
August 4,2020
SteelplantNo.4-6converterenvironmentaltransformationproje
| ct |
| ct |
Manufacturingconstruction
No
19,90
19,90
803.0
11,17
8.16
56.17
%
December
31,2020
0 0
Notapplicable
No
angConvertibleBond
| s |
August 4,2020
Repayment ofbankloans
Repayment ofbankloans
No
200,0
200,0
200,0
100.0
0%
0 0
Notapplicable
No
Subtotal of CommittedInvestment Projects
--675,9
675,9
11,19
1.83
487,4
23.38
-- --
79,40
| 8.62 |
25,20
6.56
-- --Use of Over-Raised FundsNone
August 4,
None
Notappli
| 2020 | cable |
No 0 0 0 0
0.00
%
0 0
Notappli
NoTotal --
675,9
675,9
11,19
1.83
487,4
23.38
-- --
| cable | ||
| - |
79,40
25,20
6.56
-- --Explanation ofProjectDelays,ExpectedReturns, andReasons(IncludingReasons forSelecting "NotApplicable"for ExpectedReturns)
The high-grade high-magnetic-induction non-oriented silicon steel project is greatly affected by market factors.The company has adjusted its development strategy and continues to monitor market changes.
Description ofSignificantChanges in
8.62
Project
None
Amount,Purpose, andProgress ofOver-RaisedFunds
Not applicableChanges in theImplementation Location ofFundraisingInvestmentProjects
Not applicableAdjustmentsin theImplementation Method ofFundraisingInvestmentProjects
Not applicable
Feasibility
Advance
InvestmentandReplacementof FundraisingInvestmentProjects
Applicable
For details, please refer to the content stated in Special Report Section III (3), which is not applicable.
| Advance |
| Use of Idle |
raised Fundsfor TemporarySupplementation of WorkingCapital
Applicable
For details, please refer to the content stated in Special Report Section III (3), which is not applicable.
Amount andReasons forSurplus raisedFunds inProjectImplementation
Not applicable
Purpose andDestination ofUnused raisedFunds
The unused raised funds are deposited in a designated account for raised funds.
OtherSituations inthe Use andDisclosure ofraised Funds
There are no issues or other situations.
(3) The situation for raised funds change project
?Applicable ?Not applicableThe company did not have any changes in fundraising projects during the reporting period.
VIII. Significant Assets and Equity Sold
1. Significant Assets Sold
?Applicable ?Not applicableThere were no significant asset sold during the reporting period.
2. Substantial Equity Sold
?Applicable ?Not applicableIX. Analysis of Major Subsidiaries and Affiliates
?Applicable ?Not applicableDetails of Major Subsidiaries and Affiliates that Contribute More Than 10% to the Company's Net Profit
Unit：RMB
| Company Name | Company type | Main business | Registered capital | Total assets | Net assets | Operating income | Operating profit |
Net Profit
PuxiangCoolRollingSteel Sheet
| Co., Ltd. |
Subsidiaries
Processingand sales ofsteel
1,920,000,
7,376,809,
524.34
2,386,756,111.
8,387,472,4
86.78
365,186,44
3.24
300,929,94
5.71
Acquisition and Disposal of Subsidiaries During the Reporting Period?Applicable ?Not applicable
Company Name
Disposing of Subsidiaries
| During the Reporting Period |
Impact on Overall Production Operations and
PerformanceNorth Hengda Logistics Co., Ltd. Cash Acquisition
processing business, strengthens thecompany's industrial chain, and enhances
| customer service capabilities. |
Explanation of Major Holding and Associated Companies?Applicable ?Not applicable
X. Structured Entities Controlled by the Company?Applicable ?Not applicable
XI. Outlook for the Company's Future Development(I) Industry Development Trends and the Market Competition Landscape Facing the Company2025 is the final year of the "14th Five-Year Plan" and will be a critical year for the company to solidify its internal foundations andwin new victories in the survival defense battle. Overall, the situation we face is complex and ever-changing, with unfavorable factorsand favorable conditions interwoven. On the unfavorable side, the steel industry is entering a deep adjustment cycle, and the trend
toward steel reduction and industrial upgrading is accelerating. On the favorable side, the central economic work conferenceemphasized the need to "implement a more proactive and effective macroeconomic policy," and the national policy guidance andsupport continue to strengthen. The favorable conditions for China's economic development remain unchanged. At the same time, thecompany's own ability to respond to crises and overcome difficulties has fundamentally changed. Through years of unremitting effortand reform and development, the foundation for high-quality development has been continuously solidified.(II) General Strategy for Production and OperationsGuided by Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implementing the spirit of the20th National Congress of the Communist Party and the second and third plenary sessions of the 20th Central Committee, the importantdirectives of General Secretary Xi Jinping on February 26 and his speech at the symposium on promoting the comprehensiverevitalization of Northeast China, combined with the company’s actual situation, we will establish a strong awareness of breaking thesituation and management, and fully deepen lean management and "dual basic" strategies to drive the company’s high-qualitydevelopment.(III) Operational Plan and GoalsThe production and operational goals for 2025 are: strive to achieve 10.09 million tons of iron, 10.55 million tons of steel, and 14.24million tons of finished products; zero safety incidents and zero environmental accidents. To implement these overall work ideas andproduction and operation goals, we will focus on "three key areas" and emphasize "five comprehensive improvements":
1. Firmly Win the Product Effectiveness Battle: Focus on market orientation and prioritizing efficiency, with an emphasis on
adjusting product mix.
2. Firmly Win the Cost Reduction and Efficiency Improvement Battle: Establish a strong awareness that "all expenses are costs,
and all revenues are benefits," and actively promote cost reduction across all factors, at all times, and across all processes.
3. Firmly Win the Efficiency Improvement Battle: Adhere to the principle of efficient and intensive production organization,
increase efficient production lines, and reduce inefficient ones.
4. Focus on Technological Innovation to Improve Performance: Accelerate breakthroughs in key technologies, driving high-
quality development.
5. Focus on Production Line Upgrades: Promote production line structure adjustments, accelerate digital transformation, and
increase green and low-carbon transformations.
6. Deepen Reforms: Focus on market orientation, value creation, enhancing management capabilities, and performance
evaluations.
7. Focus on Risk Control: Strengthen bottom-line thinking, prevent and resolve production safety risks, professional risks, and
integrity risks.
8. Strengthen Party Building Leadership: Strengthen political construction, grassroots development, cultural development,
talent team construction, and unity among employees.(IV) Maintaining Current Business and Funding Arrangements for Ongoing Investment ProjectsThe company will use its own funds and bank loans to meet the funding needs for production operations and technologicaltransformation.(V) Potential RisksEnvironmental Protection RisksWith the country’s "carbon peak" and "carbon neutrality" targets in place, environmental protection departments are increasingregulation of pollution control in the steel industry. Steel companies face higher environmental protection investments and operationalcosts.Response Measures: Build a green and low-carbon production system, upgrade energy-efficient and environmentally friendlyequipment, apply advanced technologies, and reduce carbon emissions. Improve eco-design and lifecycle assessments of products.Strengthen existing environmental equipment and facilities management, and improve pollution source monitoring.Market Competition RisksThe progress of domestic economic recovery has been slower than expected, and demand growth remains uncertain. The risk ofovercapacity remains due to continuous supply growth. The steel industry is transitioning from incremental growth to stockoptimization, and we will face supply-demand imbalances and increased market competition for a long time.Response Measures: Use lean management tools, deepen predictive operations, strengthen market analysis, adjust marketing strategies,and optimize product structure. Improve customer service and satisfaction in the terminal market.Raw Material Prices and Supply RisksThe global monopoly over iron ore supply is unlikely to change in the short term, and steel companies have a high dependence on ironore imports. Geopolitical conflicts and increasing supply chain risks pose challenges, with raw material prices frequently fluctuating.
Response Measures: Strengthen raw material supply and market demand analysis, construct procurement models, optimizeprocurement structure, and ensure strategic cooperation with raw material suppliers. Optimize production material structures to reduceproduction costs and minimize the impact of raw material price fluctuations.
XII. Researches, visits and interviews received in this reporting period?Applicable ?Not applicableReception Time
ReceptionLocation
ReceptionMethod
VisitorType
Visitor
Main TopicsDiscussed and
MaterialsProvided
BasicInformationIndex of the
Research11-Jan-24 Benxi
On-siteResearch
Institution
Feng Siyu,Xingzheng GlobalFund - Huang
| Zhiyuan |
Company'sproduction andoperationalstatus
RelationsActivity Recordon January 11,
| 2024 |
17-Jan-24 Benxi
On-siteInvestigation
Institution
Co., Ltd. - WangQili, PacificSecurities Co., Ltd.- Zhang Lei,Pacific SecuritiesCo., Ltd. - Pan Di,Pacific SecuritiesCo., Ltd. - Yang
| Aohe |
Companyproduction andoperation status
January 17,2024 InvestorRelationsActivity RecordTable
7-May-24 Benxi
OnlinePlatformExchange
Institution
Fund ManagementCo., Ltd. - LiNanxi, InvescoGreat Wall FundManagement Co.,Ltd. - CaiWenchen,ShenzhenZhengyuanInvestment Co.,Ltd. - XiongXiaoming,Shenzhen QianhaiHaifu AssetManagement Co.,Ltd.—Yuan ZihuaiGuangdong DehuiInvestmentManagement Co.,Ltd.—Yang PengShanghai GuozanPrivate EquityFund ManagementPartnership(LimitedPartnership)—GuoYulei ShanghaiMingda Industrial(Group) Co.,Ltd.—Xia BugangSino-British LifeInsurance Co.,Ltd.—Zheng LinDonghai FundManagement Co.,Ltd.—Dai Neng
| Xinyuan Fund |
Companyproduction andoperation status
May 7, 2024InvestorRelationsActivity RecordTable
Ltd.-Xu ZhichengGF Securities-LiSha JinjiangChenhan PrivateEquity FundManagement Co.,Ltd.-You WenjianShanghai ChaosInvestment (Group)Co., Ltd.-LiXiaonan XinyuanFund ManagementCo., Ltd.-ChenYuxiang GuorongFund ManagementCo., Ltd.-HuangJingxuan DongxingFund ManagementCo., Ltd.-Zhou HaoGF Securities-ChenQiwei China-Canada FundManagement Co.,Ltd.-Duan JinxuanShanghai JiashiPrivate EquityManagement Co.,Ltd.-Li QidongCITIC SecuritiesCo., Ltd.-LiQidong CITICSecurities Co.,Ltd.-LiuGuangzongGuolian SecuritiesCo., Ltd.-Zhao YuLujiazuiInternational TrustCo., Ltd.-YeKechen ChangxinFund ManagementCo., Ltd. - Ni WeiEverbrightPramerica FundManagement Co.,Ltd. - Hua YeshuShanghai TulingAsset ManagementCo., Ltd. - ZhaoZifeng WanjiaFund ManagementCo., Ltd. - Fu YiteBeijing ChengquanCapitalManagement Co.,Ltd. - Wang HaibinMingya FundManagement Co.,Ltd. - He MingHaining ShibeiInvestmentManagementPartnership(LimitedPartnership) -
| Wang Yingying |
Management Co.,Ltd. - Duan
| Jinxuan |
15-May-24 Benxi Other Individual
PerformancePresentation
Companyproduction andoperation status
InvestorRelationsActivity Record
| Table |
23-May-24 Benxi
On-siteInvestigation
Individual
Shareholders'Meeting
Companyproduction andoperation status
InvestorRelationsActivity Record
| Table |
29-May-24 Benxi
OnlinePlatformExchange
Institution
Yongming AssetManagement Co.,Ltd. - Xin Weiting,Shanghai YinyeInvestment Co.,Ltd. - WangGuofeng,IONAnalytics -Mergermarket -Wang Peier,Roadshow LightYears--He TianjiaoShenzhen AndroidInvestment Co.,
| Ltd.--Li Wei |
Companyproduction andoperation status
May 29, 2024InvestorRelationsActivity RecordTable
13-Jun-24 Benxi
OnlinePlatformExchange
Institution
Management Co.,Ltd. - SunQianqian, GoldenEagle FundManagement Co.,Ltd. - Lv Yanan,Golden Eagle FundManagement Co.,
| Ltd. - Zhou Yawen |
Companyproduction andoperation status
June 13, 2024InvestorRelationsActivity RecordTable
13-Jun-24 Benxi
On-siteInvestigation
Institution
Securities - DaiMo, Southern Fund- Liu Yingxing,Huitianfu - HuangHeqing, XingzhengGlobal Fund -Huang Zhiyuan,Dongzheng Asset -Xu Wangting,China Life AssetManagement --Yang ChenFranklin Guohai --Zhang DengkeChina PacificInsurance AssetManagement --Xue Chu ChinaPacific InsuranceAsset Management
| -- Zhang Zhe |
Companyproduction andoperation status
June 13, 2024InvestorRelationsActivity RecordTable
14-Jun-24 Benxi
On-siteInvestigation
Institution
Pacific Securities -Wang Qili, PacificSecurities - ZhangLei Chai Jingxi,
Companyproduction andoperation status
InvestorRelationsActivity Record
| Table |
1-Jul-24 Benxi
On-siteInvestigation
Institution
HuachuangSecurities - Ma Ye,Huaxia Securities -Chen Xiweng
Companyproduction andoperation status
| Pacific Securities - Chai Jingxi | ||
| July 1, 2024 |
InvestorRelationsActivity Record
24-Jul-24 Benxi
On-siteInvestigation
Institution
| Table | ||
| CITIC Securities - |
Liao Zonghui,CITIC Securities -Lin Yuchi,Individual Investor- Li Chunhou,Individual Investor
Companyproduction andoperation status
July 24, 2024InvestorRelationsActivity RecordTable
30-Aug-24 Benxi
OnlinePlatformExchange
Institution
| - Li Guanshui |
| Everbright Metal - |
Dai Mo, InvescoGreat Wall Fund -Long Zhen,Invesco Great WallFund - LiZhenzhuozhuo,Invesco Great WallFund - Qiu Kaiyue,Invesco Great WallFund - Liu Erkang,Invesco Great WallFund—CaiWenchen InvescoGreat Wall Fund—
Companyproduction andoperation status
August 30,2024 InvestorRelationsActivity RecordTable
2-Sep-24 Benxi
OnlinePlatformExchange
Institution
| Chen Yuxin |
| Huachuang |
Securities - DongHanxing, ChinaSouthern Fund -Ding Yuecheng,China SouthernFund - Guo Qi,China Southern
Companyproduction andoperation status
September 2,2024 InvestorRelationsActivity RecordTable
4-Sep-24 Benxi
On-siteInvestigation
Institution
Pacific Securities -Li Haoyang,Pacific Securities -Wang Qili
Companyproduction andoperation status
| Fund - Guo Min | ||
| September 4, |
2024 InvestorRelationsActivity Record
6-Sep-24 Benxi Other Individual
PerformancePresentation
Companyproduction andoperation status
| Table |
| September 6, |
2024 InvestorRelationsActivity Record
9-Sep-24 Benxi
On-siteInvestigation
Institution
BOC Fund—DingJiuyun
Companyproduction andoperation status
| Table |
| September 9, |
2024 InvestorRelationsActivity Record
10-Sep-24 Benxi
OnlinePlatformExchange
Institution
| Table | ||
| CITIC Securities - |
Huang Delong,CITIC Securities -Huang Zhaoteng,CITIC Securities -Du Bozhao, CITICSecurities - TianXiangxun, CITICSecurities - Zheng
Companyproduction andoperation status
September 10,2024 InvestorRelationsActivity RecordTable
13-Sep-24 Benxi
On-siteInvestigation
Institution
Huafu Securities -Hu Senhao
Companyproduction andoperation status
2024 InvestorRelationsActivity Record
| Table |
8-Nov-24 Benxi
OnlinePlatformExchange
Institution
Feng Fan, Yin HuaFund - Zhang Ziyu,Guotai JunanSecurities - WeiYudi, Guotai JunanSecurities - Wang
| Hongyu |
Companyproduction andoperation status
November 8,2024 InvestorRelationsActivity RecordTable4-Dec-24 Benxi
On-siteInvestigation
Institution
Pacific Securities -Li Haoyang,Pacific Securities -Wang Qili
Companyproduction andoperation status
2024 InvestorRelationsActivity Record
| Table |
XIII. The Formulation and Implementation of Market Value Management System andValuation Enhancement Plan.Whether the company established a market value management System?Yes ?NoWhether the company disclosed its valuation enhancement plan?Yes ?No
XIV. Implementation of the "Quality Return Dual Improvement" Action Plan
Whether the company has disclosed the announcement of the "Quality Return Dual Improvement" action plan?Yes ?No
IV. Corporate Governance
I. Basic Situation of Corporate GovernanceDuring the reporting period, the Company has been following the laws, regulations and documents such as theCompany Law, Securities Law, Governance Guidelines for Listed Companies, Guidelines for the NormativeOperation of Listed Companies on the Shenzhen Stock Exchange and Articles of Association. Based on the actualsituation of the company, the Company has been continuously improving the corporate governance structure andinternal control system of the company, improves the governance level, and promotes the company's standardizedoperation. As of the end of the reporting period, the actual situation of corporate governance meets the requirementsof the regulatory documents related to the governance of listed companies.
1. Shareholders and Shareholders' General Meeting: The company has formulated the "Rules of Procedures for
General Meetings of Shareholders" in strict accordance with the "Company Law", "Rules for Shareholders' GeneralMeetings of Listed Companies" and the company's "Articles of Association" to ensure the exercise of the rights ofthe company's shareholders and the standard operation of the shareholders' meeting. The company's previousshareholder meetings have provided two attendance channels, on-site voting and online voting, to facilitateshareholders. Involving major issues that affect the interests of small and medium investors, the company countsthe votes of small and medium investors individually and discloses them in a timely manner to ensure that allshareholders enjoy equal status and fully exercise their rights. And by hiring lawyers to witness and ensure the legalcompliance of the convening, convening and voting procedures of the meeting, the legitimate rights and interests ofthe company and shareholders have been safeguarded.
2. Directors and the board of directors: the company's board of directors has clear responsibilities, and the company's
directors exercise their powers in strict accordance with the "Articles of Association", "Rules of Procedures of theCompany's Board of Directors", "Company Independent Directors Work System" and other related systems,perform their duties with integrity and diligence, and safeguard the legitimate rights and interests of the companyand shareholders. The company's board of directors has four special committees, namely audit, strategy, nomination,remuneration and assessment, each of which performs its own responsibilities and functions, and can carry out itswork in accordance with the rules of procedure of each special committee. During the reporting period, theconvening and holding procedures of the company's board of directors complied with the “Company Law”,“Articles of Association” and “Rules of Procedure of the Board of Directors” and other relevant laws andregulations.
3. Supervisors and Board of Supervisors: The company's supervisors can earnestly perform their duties,
independently and effectively perform supervision and inspection functions. The company's supervisors attendshareholders' meetings, attend board meetings as non-voting delegates, regularly inspect the company's legaloperations and financial conditions, and issue opinions from the board of supervisors. Supervise the company'sfinances, the performance of the company's directors and senior management personnel, and the capital exchangeswith related parties, so as to safeguard the legal rights and interests of the company and shareholders. The numberand structure of the board of supervisors meet the requirements of laws and regulations, and its convening andconvening are strictly implemented in accordance with the "Articles of Association" and "Rules of Procedure of theBoard of Supervisors" to ensure that the board of supervisors effectively performs its duties.
4. Controlling shareholders and the company: The company has independent and complete business and
independent management capabilities, and is independent of the controlling shareholders and actual controllers interms of business, personnel, assets, institutions, and finances; The company's board of directors, board ofsupervisors and other internal institutions operate independently; The company's major decisions are made by theboard of directors or the general meeting of shareholders in accordance with the law. There is no direct or indirectintervention in the company's decision-making and production and operation activities beyond the general meetingof shareholders, nor does it harm the interests of the company and other shareholders.
5. Information disclosure and transparency: The company strictly complies with the requirements of the "Shenzhen
Stock Exchange Stock Listing Rules" and the "Information Disclosure Management System" and other requirements,truthful, accurate, and complete, without false records, misleading statements or major omissions in performinginformation disclosure obligation, "China Securities Journal", "Securities Times", "Hong Kong Commercial Daily"and www.cninfo.com.cn are the designated media for company information disclosure. The company publishesregular reports and temporary announcements through the above-mentioned information disclosure media to ensurethat all shareholders of the company can obtain information with equal opportunities.
6. Investor relationship management: The company continues to strengthen communication with investors to deepen
investors' understanding and recognition of the company. The company appoints the secretary of the board ofdirectors as the person in charge of investor relations management, and the office of the board of directors is theorganization that undertakes the daily work of investor relations management. The company makes full use of on-site meetings, dedicated telephone calls, investor interaction platforms and other methods to communicate with thecompany's shareholders, listens carefully to the opinions and suggestions of investors on the company's strategicdevelopment and production and operation, and has established a good communication mechanism with investors,which enhances investors' understanding and investment confidence in the company.
Whether there exists any difference in compliance with corporate governance, PRC Company Law and relevantprovisions of CSRC
□ Yes √ No
There exists no difference in compliance with corporate governance, PRC Company Law and relevant provisionsof CSRC.
II. Explanation on Structural Independence of the Company on Business, Personnel, Assets, Organizationand Finance from the Controlling ShareholderThe Company is separated from the controlling shareholder in aspects of business, personnel, assets, organizationand finance, etc. and has its own independent and complete business operation.
(1) In business operation: The Company has its own production and business planning, financial affairs check and
calculate, labor and personnel, raw material supplies and products selling business system independently andcompletely.
(2) In personnel: The Company and controlling shareholder are separate in such aspects as labor, personnel and
salary management. Such senior executives as company's chairman, general manager, vice general manager,secretary of Board of Directors, etc. get salary from the Company, and hold the important position other than adirector in shareholder department.
(3) In Asset: The Company is separated from the controlling shareholder's clearly in asset. The Company has its
own independent purchase, production, and marketing system.
(4) In organization: The internal operations of the Company are independent; organization structure and working
function are totally independent.
(5) In finance: The company has independent financial management department, the accounting and financial
management system where are complete and operated independently, and has bank account and pay taxesindependently.
III. Competition Situations of the Industry
√ Applicable □Not applicable
Question type
Type ofaffiliation
withlisted
Company
name
Company
nature
Cause Solution
Progress and
follow-up
plans
Horizontalcompetition
Controllingshareholder
Ansteel GroupCo., Ltd.
Other
Ansteel Group
| companies | ||
| Co., Ltd. |
reorganized
Ltd.
Ansteel
| Benxi Steel Group Co., | promises that |
within 5 yearsfrom the dateof issuance ofitscommitment
strive to use ashorter period
| of time, in |
accordance
requirementsof the relevantsecuritiesregulatoryauthorities,
| and on the premise of |
complying
applicable
| laws and |
regulations
regulatory
| rules at that time, it will |
comprehensiv
various
| methods such as asset |
restructuring,businessadjustment,entrustedmanagement,etc. to steadily
relevant
| businesses to solve the problem of |
horizontal
The Companydisclosed thatthe Plan for
Major AssetReplacementand RelatedPartyTransactionson June 21st ,2023 andplanned tocarry out assetreplacementwith BengangSteel Co.. Atpresent, theCompany isfurtherdemonstrating,communicating andnegotiatingthe transactionplan. After therelevantmatters aredetermined,the Companywill convenethe Board ofDirectorsagain fordeliberation.
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1. Annual General Meeting
Sessions Type
competition.
Investorparticipation ratio
Meeting Date Date of disclosure
| Investor participation ratio | Index of information disclosure | |||
| Annual General Meeting of 2023 | Annual General Meeting |
77.10% 23 May 2024 24 May 2024
Meeting of
| Shareholders |
First ExtraordinaryGeneral Meeting ofShareholders in 2024
ExtraordinaryGeneral Meeting
78.24% 25 Dec 2024 26 Dec 2024
Resolutions of theFirst ExtraordinaryGeneral Meeting ofShareholders of
| 2024 |
2. Request for Extraordinary General Meeting by Preferred Stockholders Whose Voting Rights Restore
□ Applicable √ Not applicable
V. Status of Directors, Supervisors and Senior Executives
1. Basic Information
Name
GenderAge
Positi
on
OfficeStatus
Starting date
ofofficeterm
Expirydate ofofficeterm
Sharesheld at
theyear-begin
Sharesincreas
edduring
thereporti
ngperiod
Sharesdecrea
sedduring
thereporti
ngperiod
Otherincreas
e /decrea
se
Sharesheld at
theyear-end
Reason forchange
s
HuangZuowei
Male 54
Chairman,Generalmanager
Inoffice
May2023
26 Apr2025
QuanXihong
Male 47
Director
Inoffice
19 Oct2023
26 Apr2025
WangDonghui
Male 55
Director
Inoffice
16 Mar2023
26 Apr2025
TangYaowu
Male 52
Director
Inoffice
22 Jul2022
26 Apr2025
LiuZhengang
Male 54
Director
Inoffice
25 Dec2024
26 Apr2025
ZhangSuxun
Female
IndependentDirector
Inoffice
May2019
26 Apr2025
YuanZhizhu
Male 43
IndependentDirector
Inoffice
May2020
26 Apr2025
ZhongTianli
Female
IndependentDirector
Inoffice
May2021
26 Apr2025
LuXuezhu
Male 44
manof the
| Super |
Inoffice
18 Jul2023
26 Apr2025
LuWeijun
Male 49
Supervisor
Inoffice
7 Dec2021
26 Apr2025
ZhangWeian
Male 55
visoryBoardEmplo
yeeSuper
| visor |
Inoffice
19 Oct2023
26 Apr2025
GuoPeng
Male 46
yeeSuper
| visor |
Inoffice
19 Oct2023
26 Apr2025
MaoXiuru
Female
yeeSuper
| visor |
Inoffice
23 Mar2024
26 Apr2025
LiuZhangman
Male 50
Deputygeneralmanager
Inoffice
17 Aug2022
26 Apr2025
GuoYuwei
Male 55
Deputygeneralmanager
Inoffice
17 Aug2022
26 Apr2025
ZhengZhengli
Male 48
Accountant,Secretary oftheBoardofDirect
| ors |
Inoffice
28 Feb2023
26 Apr2025
Li Yan Male 42
Chairman
Leaveoffice
16 Mar2023
7 Aug2024
Jin Ge Male 56
Director
Leaveoffice
18 Dec2023
25 Oct2024
JiangZhenyu
Male 46
yeesuperv
| isor |
Leaveoffice
19 Oct2023
23 Mar2024
LiuYansong
Male 53
ygeneralmanag
| er |
Leaveoffice
18 Jul2023
2 Apr2024
Total -- -- -- -- -- -- 0 0 0 0 0 --
During the reporting period, is there any resignation of directors and supervisors and dismissal of seniormanagement personnel during the reporting period
√Yes □No
1. Mr. Li Yan, former Chairman of the Company, resigned during the reporting period due to job changes during
his term of office;
2. Mr. Jin Ge, former director, resigned during the reporting period due to job changes during his term of office;
3. Mr. Jiang Zhenyu, former employee supervisor, resigned during the reporting period due to job changes during
his term of office;
4. Mr. Liu Yansong, former deputy general manager, resigned during the reporting period due to job changes
during his term of office.
Changes in directors, supervisors and senior management of the Company
√Applicable □Not applicable
Name Position Type of change Date Reason
Li Yan Chairman Leave office 7 Aug 2024 Voluntary resignationJin Ge Director Leave office 25 Aug 2024 Voluntary resignationJiang Zhenyu Employee supervisor Leave office 23 Mar 2024 Voluntary resignationLiu Yansong
Deputy generalmanager
Dismissal 2 Apr 2024 Job changesHuang Zuowei
Chairman Elected 7 Aug 2024 ElectedGeneral manager Appointment 25 Apr 2024 AppointmentLiu Zhengang Director Elected 25 Dec 2024 ElectedMao Xiuru Employee supervisor Elected 23 Mar 2024 Elected
2. Posts holding
Work experience, professional background and currently mainly responsibilities of Directors, Supervisors and Senior Executives incurrent officeHuang Zuowei, male, 54 years old, university degree, master of engineering, senior engineer, currently serving as Party Secretary,Chairman and General Manager of Bengang Bancai; Chairman of Bengang Posco. Formerly served as Director of Energy andEnvironmental Protection Department of Bengang Bancai; General Manager of Planning and Technology Department of BengangGroup; Director of Bengang Beiying Company; Director of Bengang Mining Company; Deputy Party Secretary, Director and DeputyGeneral Manager of Bengang Bancai.Quan Xihong, male, 47 years old, university degree, bachelor of engineering, senior engineer, currently serving as deputy secretary ofthe Party Committee, employee director, secretary of the Discipline Inspection Commission, chairman of the labor union, general legalcounsel, chief compliance officer, and secretary of the Party Committee of Bengang Bancai. He was formerly deputy director of theComprehensive Supervision Department of the Discipline Inspection Commission (Supervision Department) of Bengang Group;director of the Discipline Inspection and Supervision Cadre Supervision and Management Office of the Discipline InspectionCommission (Supervision Department) of Bengang Group; director of the Discipline Inspection and Supervision Office of theDiscipline Inspection Commission (Supervision Department) of Bengang Group; deputy secretary of the Discipline InspectionCommission, manager of the Audit Department, and director of the Party and Government Supervision Office of Bengang BeiyingCompany.Wang Donghui, male, 55 years old, university degree, bachelor of engineering, bachelor of economics, senior accountant, currentlyserving as director of Bengang Bancai; general manager of the Capital Finance Department of Bengang Group. Former chief accountantand director of the Finance Department and Operation Improvement Department of Bengang Beiying Company; deputy director of theFinance Department of Bengang Group and chief accountant of Bengang Beiying Company; director of the Finance Department ofBengang Group; chief accountant and secretary of the board of directors of Bengang Bancai; chief accountant of Bengang MiningCompany.Tang Yaowu, male, 52 years old, university degree, bachelor of engineering, engineer. He is currently the director of Bengang Bancai;full-time director and supervisor of Bengang Group Office; director of Machinery Manufacturing Company; director of Thermal PowerCompany; supervisor of Benxin Company. He was formerly the deputy director of the rolling mill of Bengang Beiying Company;executive deputy director of the rolling mill of Bengang Beiying Company; director of the rolling mill of Bengang Beiying Company;assistant to the general manager of Bengang Beiying Company and director of the production department; chief engineer of BengangBeiying Company; chief engineer and director of the rolling mill of Bengang Beiying Company; deputy general manager and chiefengineer of Bengang Beiying Company; deputy director of the Energy and Environmental Protection Department of Bengang Bancai.Liu Zhengang, male, 54 years old, university degree, senior political worker. He is currently the director of Bengang Bancai; full-timedirector and supervisor of Bengang Group Office; director of Bengang Company; director of Industrial Company; supervisor ofConstruction Company. He was formerly the deputy manager and deputy secretary of the Party Committee of Bengang New IndustrialDevelopment Company; deputy director of the Administrative Management Center of Benxi Iron and Steel Company; director of assetmanagement of the Planning and Technology Department of Bengang Group; and director of New Business Company.Zhang Suxun, female, 69 years old, bachelor degree, professor. Currently serving as independent director of Bengang Bancai. Formerteacher of Liaoning University Business School.Yuan Zhizhu, male, 43 years old, PhD, associate professor of accounting at Northeastern University, master's tutor, non-practicingmember of the Chinese Institute of Certified Public Accountants. He is currently an independent director of Bengang Bancai; directorof the Accounting Department of the School of Business Administration of Northeastern University, and a director of the LiaoningProvincial Accounting and Abacus Mental Arithmetic Society and the Liaoning Provincial Auditing Society. He was a lecturer at theSchool of Business Administration of Northeastern University.
Zhong Tianli, female, 68 years old, professor (doctoral supervisor) at Northeastern University. Currently an independent director ofBengang Bancai; professor of the Accounting Department of the School of Business Administration of Northeastern University. Formervice dean of the School of Business Administration of Northeastern University; dean of the School of Basic Sciences of NortheasternUniversity and director of the Institute of Financial Management of the School of Business Administration.Brief Introduction of Supervisory Board Members:
Lu Xuezhu, male, 44 years old, university degree, bachelor of engineering, senior economist, senior accountant, currently serving asChairman of the Supervisory Committee of Bengang Bancai; General Manager of the Audit Department of Bengang Group; Directorof Bengang Mining Company. Formerly served as Deputy Director of the Economic Responsibility Audit Department of Angang GroupAudit Department; Deputy Director of the Operation and Management Audit Department of Angang Group Audit Department; Directorof the Operation and Management Audit Department of Angang Group Audit Department; Supervisor of Bengang Bancai.Lu Weijun, male, 49 years old, university degree, senior accountant. Currently serving as the supervisor of Bengang Bancai; directorof operation and management audit of the Audit Department of Bengang Group. Formerly the chief of the cost section of the FinanceDepartment of the Construction Company; chief business engineer of the Audit Department of Bengang Bancai; chief business engineerof the Audit Department of Bengang Group; deputy manager of the Finance Department of Bengang Bancai.Zhang Weian, male, 55 years old, university degree, senior accountant, currently serving as employee supervisor and manager of theaudit department of Bengang Bancai; supervisor of Bengang Posco Company; supervisor of Dalian Benruitong Company; supervisorof Shenyang Xiangyu New Materials Technology Co., Ltd. He was formerly deputy director of the Financial Department of BengangBeiying Company; deputy director of the Financial Department of Bengang Group.Guo Peng, male, 46 years old, university degree, assistant engineer, senior technician, currently serving as employee supervisor ofBengang Bancai and special grade technician of rolling mill in 2300 production operation area of hot rolling mill. He was formerlyproduction shift supervisor of the third hot rolling production operation area of hot rolling mill of Bengang Bancai; chief operator andfirst grade technician of rolling mill in the third hot rolling production operation area of hot rolling mill of Bengang Bancai.Mao Xiuru, female, 45, university degree, Bachelor of Law, corporate legal advisor, currently serving as employee supervisor ofBengang Bancai, deputy director (deputy manager) of the Party and Mass Work Department (Organization Department of the PartyCommittee, Human Resources Department, Propaganda Department of the Party Committee, United Front Work Department, LaborUnion, Youth League Committee, Party Committee of the Office); deputy chairman of the Labor Union of Bengang Bancai; deputysecretary of the Party Committee of the Office of Bengang Bancai, secretary of the Discipline Inspection Commission of the Office,and chairman of the Labor Union of the Office. She was previously the senior manager of legal protection of the Legal and ComplianceDepartment of Bengang Group; deputy manager (deputy director) of the General Management Department (Party Committee Office,Board Office, Confidentiality Office) of Bengang Bancai.Brief introduction of Non-Director Senior Management Members:
Liu Zhangman, male, 50 years old, university degree, senior engineer. Currently serving as deputy general manager of Bengang Bancai.Former deputy director of the Second Steelmaking Plant of Bengang Beiying Company; deputy director of the Steelmaking Plant ofBengang Beiying Company; assistant to the executive deputy general manager of Bengang Beiying Company and chairman of theScience and Technology Association, director of the Technology Center; chief engineer and chairman of the Science and TechnologyAssociation, director of the New Product Department, manager of the Bar and Wire Development Project Department, and director ofthe Bar and Wire Research Institute of Bengang Beiying Company; deputy general manager and director of Bengang Beiying Company;deputy director of the Manufacturing Department of Bengang Bancai; deputy general manager of the Operation ManagementDepartment of Bengang Group; director of Bengang Bancai.Guo Yuwei, male, 55 years old, university degree, master of engineering, senior engineer. He is currently the deputy general managerof Bengang Bancai. He used to be the assistant to the director of the ironmaking plant of Bengang Bancai; deputy director of theironmaking plant of Bengang Bancai; secretary of the Party Committee and chairman of the labor union of the ironmaking plant ofBengang Bancai; deputy director of the ironmaking plant of Bengang Bancai; member of the preparatory group of the Party Committeeof Bengang Beiying Company and deputy general manager; director of Bengang Construction Company; secretary of the PartyCommittee and deputy director of the ironmaking plant of Bengang Bancai.Zheng Zhengli, male, 48 years old, graduate education, MBA, senior accountant, currently serving as Chief Accountant and Secretaryof the Board of Directors of Bengang Bancai; Director of Bengang Posco Company. He was formerly Deputy Director of the FinancialDepartment of Bengang Bancai; Accounting and Taxation Director of the Financial Department of Bengang Bancai; Party CommitteeMember and Assistant to the General Manager of Bengang Beiying Company.Posts holding in Shareholders
√ Applicable □ Not applicable
Names of theperson in office
Names of theshareholders
Titles engaged inthe shareholders
Starting date of
office term
Expiry date of
office term
Does he /she
receiveremuneration orallowance from theshareholder’compa
nyWang Donghui
Bengang GroupCo., Ltd.
General Managerof Capital FinanceDepartment
9 Feb 2023 YesTang Yaowu
Bengang GroupCo., Ltd.
Full-time director 24 Mar 2022 YesLiu ZhengangBengang GroupFull-time director 1 Jul 2024 Yes
Names of theperson in office
Names of theshareholders
Titles engaged inthe shareholders
Starting date ofoffice term
Expiry date ofoffice term
Does he /shereceiveremuneration orallowance from theshareholder’compa
ny
Lu Xuezhu
Bengang GroupCo., Ltd.
General managerof auditdepartment
12 Apr 2023 Yes
Lu Weijun
Bengang GroupCo., Ltd.
Director ofOperation andManagement Auditof AuditDepartment
6 Jun 2023 Yes
Co., Ltd.Description of the
position in the
| shareholder |
NonePosts holding in other companies
√Applicable □Not applicable
Names of theperson in office
Names of the othercompanies
Titles engaged inother companies
Starting date of
office term
Expiry date of
office term
Does he /she
receiveremuneration orallowance fromother companyHuang Zuowei
Bengang PuxiangCold-rolled SheetCo., Ltd.
Chairman 25 Jul 2024 NoLiu Zhengang
Beitai Steel(Group) Co., Ltd.
Director 10 Jul 2023 NoLiu Zhengang
Benxi Iron andSteel (Group)IndustrialDevelopment Co.,Ltd.
Director 21 Apr 2022 No
Liu Zhengang
Benxi Iron andSteel (Group)Construction Co.,Ltd.
Supervisor 1 Jul 2024 No
Zhang Weian
Dalian BenruitongAutomotiveMaterialsTechnology Co.,Ltd.
Supervisor 12 Aug 2023 No
Zhang Weian
Bengang PuxiangCold-rolled SheetCo., Ltd.
Supervisor 25 Jul 2023 NoZhang Weian
Shenyang XiangyuNew MaterialsTechnology Co.,Ltd.
Supervisor 21 Sep 2023 NoZhong Tianli
Professor 1 Oct 1982 No
Yuan Zhizhu
School of BusinessAdministrationNortheasternUniversity
Dean ofDepartment ofAccounting
13 Jul 2009 YesYuan Zhizhu
NortheasternUniversityShenyang MachineTool Co., Ltd.
| Shenyang Machine Tool Co., Ltd. | Independent director |
28 May 2021 Yes
position in other
| companies |
NonePunishment by the securities regulatory authorities in last three years
□ Applicable √ Not applicable
3. Remuneration to Directors, Supervisors and Senior Executives
Decision-making procedures, basis of recognition and actual payment of the remuneration to Directors, Supervisors and SeniorExecutives
Decision making procedures
1. The Remuneration and Assessment Committee will produce a plan or proposal, which will be implemented upon approval of the
Board or the Shareholders’ Meeting;
2. According to performance assessment criteria and procedures, the Remuneration and Assessment Committee undertakes assessment
on the Directors and Senior Executives;
3. Remuneration amounts and ways of rewards will be proposed according to the assessment and remuneration policies for Directors,
Supervisors and Senior Executives, and adopted by voting;
4. To be implemented upon approval of the Board.
Basis of recognitionRemuneration scheme for a particular position is recognized basing on the range of responsibilities, duties. Remunerations aredistributed based on the assessment results and remuneration policies.
Actual payment of the remunerationRemuneration is paid on monthly basis according to the remuneration allocation policies.Remuneration of Directors, Supervisors and Senior Executives during the reporting period
Unit: RMB 10 thousandName Gender Age Position Office status
Total pre-taxcompensationreceived fromthe company
Whetherreceiveremuneration inthe Company'srelated partiesHuang Zuowei Male 54
Chairman,Generalmanager
In office 58.8 NoQuan Xihong Male 47
Employeedirector
In office 44.18 NoWang Donghui Male 55 Director In office 0 YesTang Yaowu Male 52 Director In office 0 YesLiu Zhengang Male 54 Director In office 0 YesZhang Suxun Female 69
Independentdirector
In office 5 NoYuan Zhizhu Male 43
Independentdirector
In office 5 NoZhong Tianli Female 68
Independentdirector
In office 5 NoLu Xuezhu Male 44
Chairman ofthe SupervisoryCommittee
In office 0 Yes
Lu Weijun Male 49 Supervisor In office 0 YesZhang Weian Male 55 Supervisor In office 32.71 NoGuo Peng Male 46 Supervisor In office 27.29 NoMao Xiuru Female 45 Supervisor In office 27.03 NoLiu Zhangman Male 50
Deputy generalmanager
In office 57.97 NoGuo Yuwei Male 55
Deputy generalmanager
In office 55.45 NoZheng Zhengli Male 48
ChiefAccountant,Secretary of theBoard ofDirectors
In office 50.54 NoLi Yan Male 42 Chairman Leave office 22.31 NoJin Ge Male 56 Director Leave office 0 YesJiang Zhenyu Male 46 Supervisor Leave office 3.85 NoLiu Yansong Male 53
Deputy generalmanager
Leave office 7.43 NoTotal -- -- -- -- 402.56 --Other information:
□ Applicable √ Not applicable
VI. Duty fulfillment of directors during the reporting period
1. The situation of the Board of Directors during the reporting period
Sessions Meeting Date Date of disclosure
24th Ninth session9 Apr 2024
Resolution of the 24thmeeting of the 9th Board ofDirectors25th Ninth session 25 Apr 2024 29 Apr 2024
Announcement of Resolutionsof the 25th Meeting of theNinth Board of Directors26th Ninth session 18 Jul 2024 19 Jul 2024
Announcement of Resolutionsof the 26th Meeting of theNinth Board of Directors27th Ninth session 7 Aug 2024 8 Aug 2024
Announcement of Resolutionsof the 27th Meeting of theNinth Board of Directors28th Ninth session 27 Aug 2024 29 Aug 2024
Announcement of Resolutionsof the 28th Meeting of theNinth Board of Directors29th Ninth session 25 Oct 2024 29 Oct 2024
Announcement of Resolutionsof the 29th Meeting of theNinth Board of Directors30th Ninth session 5 Dec 2024 6 Dec 2024
Announcement of Resolutionsof the 30th Meeting of theNinth Board of Directors31st Ninth session 23 Dec 2024 24 Dec 2024
Announcement of Resolutions
Index of information
disclosureof the 31rt Meeting of the
2. The situation of directors attending the BOD and shareholders meeting
Ninth Board of Directors
Attendance of Directors at Board of Directors and General Meetings of Shareholders
Director
name
| Attendance of Directors at Board of Directors and General Meetings of Shareholders | ||
| Number of | ||
Boardmeetingsnecessary tobe attendedduring thereporting
Number of
spotattendances
Number of
meetingsattended byCommunicati
on
Number ofattendances
byrepresentativ
e
Number of
absences
Failure topersonallyattend board
meetingssuccessively
twice
(Yes/No)
Number of
generalmeetings tobe attendedHuangZuowei
8 4 4 0 0 No 2Quan Xihong 8 4 4 0 0 No 2WangDonghui
8 4 4 0 0 No 2Zhang Suxun 8 4 4 0 0 No 2Zhong Tianli 8 4 4 0 0 No 2Yuan Zhizhu 8 4 4 0 0 No 2Tang Yaowu 8 4 4 0 0 No 2Jin Ge 6 3 3 0 0 No 1Li Yan 3 1 2 0 0 No 1Explanation of two consecutive absences from attending the Board of Directors in personNone
3. Objections of directors on relevant issues
Objections of directors on some relevant issues
□ Yes √ No
Directors proposed no objection against the relevant matters during the reporting period.
4. Other Notes to Duty Fulfillment of Directors
Whether any director’s advice to the Company was accepted
√ Yes □ No
Illustration of acceptance of or failure to accept director’s advice to the CompanyDirectors have not made recommendations during the reporting period.VII. Duty Fulfillment of the Special Committees under the Board during the reporting period
CommitteesMembership
Number ofmeetingsheld
Meeting date
Meetingcontent
periodImportant
comments
andsuggestions
| raised |
Otherperformance
of duties
circumstance
s of theobjection (if
| any) |
StrategyCommittee
Li Yan, WangDonghui,Zhong Tianli
1 17 Mar 2024
1. 2023
Board ofDirectorsReport; 2.Proposal on2024InvestmentFrameworkPlan; 3. 2024BengangBancai
Agree
Notapplicable
None
NominatingCommittee
Yuan Zhizhu,ZhangSuxun,HuangZuowei
17 Mar 2024
Proposal ontheappointmentof thecompany'sgeneralmanager
Agree
Notapplicable
None
15 Oct 2024
Proposal onnominatingcandidatesfor directors
Agree
Notapplicable
None
Audit andRiskManagementCommittee
ZhangSuxun,YuanZhizhu,WangDonghui
17 Mar 2024
1. 2023
AnnualReport andSummary; 2.2023FinancialStatements;
3. 2023
ProfitDistributionPlan; 4.Proposal onRenewal ofAccountingFirm; 5.Proposal onProvision forAssetImpairmentin the 2023InternalControlEvaluationReport; 6.SpecialReport onDeposit andUse ofRaised Fundsin 2023
Agree
Notapplicable
None
14 Apr 2024
1. 2024 first
quarterreport; 2.2023 annualcompliancework report;
3. 2023
internalcontrolsystem workreport; 4.2024 majorrisk
Reform Planassessment
Agree
Notapplicable
None
12 Jul 2024
Proposal onusing idleraised fundstosupplementworkingcapital
Agree
Notapplicable
None
16 Aug 2024
1. 2024 semi-
annual reportof BengangPlates Co.,Ltd.; 2.Proposal onthe riskassessmentreport ofAngangFinance Co.,Ltd. in thefirst half of2024; 3.Specialreport on thedeposit anduse of raisedfunds ofBengangPlates Co.,Ltd. in thefirst half of2024; 4.Proposal onchanges inaccountingpolicies
Agree
Notapplicable
None
15 Oct 2024
2024 ThirdQuarterReport
Agree
Notapplicable
None13 Dec 2024
2024 InternalControlEvaluationWork Plan
Agree
Notapplicable
None
Remuneration andAppraisalCommittee
Zhong Tianli,Yuan Zhizhu,Tang Yaowu
14 Apr 2024
Opinions onthe paymentof annualremunerationfor seniormanagementof thecompany in2023
Agree
Notapplicable
None
11 Jul 2024
Proposal onthe
reportperformance
Agree
Notapplicable
None
indicators forthecompany'smanagementin 2024 andthe term ofoffice from2024 to 2026
VIII. Duty Fulfillment of the Supervisory CommitteeWhether the supervisory board made any objection against the supervision issue during the reporting period
□ Yes √ No
The Supervisory Board made no objection against the supervision issue during the reporting period.IX. Staff Condition
1. Staff number, Professional Structure and Education Level
evaluation
Number of in-service staff in parent company
| Number of in-service staff in parent company | 12,495 |
| Number of in-service staff in main subsidiaries | 637 |
| Total Number of in-service staff | 13,132 |
| Total Number of staff receiving remuneration in the current period | 13,132 |
| Number of retired staff whose expense was borne by parent company and major subsidiary companies |
23,727
| Professional Composition | |
| Type of Professional Composition | Headcount |
| Production Staff | 10,894 |
| Sales Staff | 164 |
| Technician | 1,228 |
| Financial Staff | 89 |
| Administrative Staff | 757 |
| Total | 13,132 |
| Educational Degree | |
| Type of Educational Degree | Headcount |
| PhD and above | 12 |
| Postgraduate | 252 |
| Undergraduate | 4,052 |
| Junior College | 5,054 |
| Technical secondary school | 277 |
| High School and Technical School | 2,317 |
| Middle School and others | 1,168 |
| Total | 13,132 |
2. Remuneration Policies
In 2024, the company will establish a sound performance management system. Based on the determined annual production andoperation guidelines, policies and management goals, the company will assess the operating indicators and work task completion ofeach functional department and factory, set key performance assessment indicators, and implement monthly assessments. Pay accordingto position, ability and performance. Set salary according to position, and salary changes with position changes. Guide employees toimprove their abilities, establish a salary distribution mechanism in which job placement depends on competition and income dependson contribution, highlight the assessment of key performance indicators, and truly realize that income can be increased or decreased.Continue to promote the lump sum of total salary, guide each unit to rationally allocate human resources, optimize the distributionmechanism and improve labor productivity.
3. Training Plan
In 2024, the company will implement the "talent-driven enterprise" strategy, focus on building an internationally competitiveproduction base for automotive steel and high-quality steel bars and wires, optimize the education and training system, improve thetraining evaluation mechanism, and improve the quality and effectiveness of training. It will highlight the political, systematic, preciseand effective nature of training, continuously improve the political, leadership, general and professional abilities of employees, andstrive to create distinctive high-quality training projects, effectively release the effectiveness of training, further improve thecomprehensive quality of the workforce, and lay a solid foundation for the company's high-quality development. The companycompleted 17 training projects throughout the year, trained 21 thousand people, and the training qualification rate reached 96%, andthe annual training plan execution rate reached 100%. The training target plan was fully achieved.
4. Outsourcing
□ Applicable √ Not applicable
X. Profit Distribution or Capital Reserve ConversionFormulation, implementation and adjustment of profit distribution policy of common shares especially cash dividendpolicy during the reporting period
√ Applicable □ Not applicable
Profit distribution plan for 2024: Audited and confirmed by BDO China Shu Lun Pan Certified Public Accountants LLP., inaccordance with the Chinese Accounting Standards for Business Enterprises, the net profit attributable to the parent company in 2024is RMB -5,037,271,398.28 yuan. As of December 31, 2024, the ending balance of company's undistributed profit is RMB -7,497,011,632.90 yuan. The profit distribution plan for 2024 is: no cash dividends, no bonus shares, and no capital reserve conversionto increase share capital.
Special description of cash dividend policyWhether it meets the requirements of the company's articles ofassociation or the resolutions of the shareholders meeting:
YesWhether the dividend standard and ratio are clear: YesWhether the relevant decision-making procedures andmechanisms are complete:
YesWhether independent directors have performed their duties duediligence and played their due role:
Yes
If a company does not distribute cash dividends, it shoulddisclose the specific reasons and the measures it intends to taketo enhance the level of investor returns:
Due to the company's losses in 2024, the specific conditions forcash dividends in the Articles of Association are not met. Takinginto account the company's development and capital needs, in
order to better protect the company's sustainable development an
the long-
| term interests of all shareholders, it is planned that no cash dividends will be distributed, no bonus shares will be issued, and no capital increase will be made from reserve in 2024. The |
company will continue to deepen reforms and innovations,
performance.Whether small and medium shareholders have sufficient
| strive to improve profitability, and reward investors with better | |
| opportunities to express their opinions and demands, and whether |
their legitimate rights and interests are fully protected:
YesIf the cash dividend policy is adjusted or changed, whether theconditions and procedures are compliant and transparent:
YesBoth the Company’s profit and the parent company’s retained earnings are positive however no proposal of cash dividend distributionwas proposed during the reporting period
□ Applicable √ Not applicable
Profit distribution and capital reserve conversion into share capital during the reporting period
□ Applicable √ Not applicable
The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital during the year.
XI. Implementation of the company's equity incentive plan, employee stock ownership plan or otheremployee incentive measures
□ Applicable √ Not applicable
The company had no equity incentive plan, employee stock ownership plan or other employee incentive measures and theirimplementation during the reporting period.
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control system
During the reporting period, the company strictly abided by the provisions of the Basic Norms for Enterprise Internal Control and itssupporting guidelines and other internal control regulatory requirements, and combined with industry characteristics, businessoperations, and the company's internal control system and evaluation methods, continuously improved and refined the internal controlmanagement system, promoted the improvement of the company's decision-making efficiency, provided guarantees for the legality andcompliance of the company's business management and asset security, and effectively promoted the steady implementation of thecompany's strategy.The company has established a sound internal control system, and has revised and improved it in due course in light of actual operations,giving full play to its system guarantee role. During the reporting period, the company formulated 33 systems, including the "BengangSteel Plates Co., Ltd. Work Secret Protection Management Measures" and the " Bengang Steel Plates Co., Ltd. Development Strategyand Planning Management Measures", and revised 263 systems, including the " Bengang Steel Plates Co., Ltd. Investor RelationsManagement System" and the " Bengang Steel Plates Co., Ltd. Related Transaction Management Measures". As of the end of thereporting period, the company had a total of 311 effective systems.
2. Material internal control defects found during the reporting period
□ Yes √ No
XIII. Management and control of subsidiaries during the reporting period
Company name
Integrationplan
Integration
progress
encountered
during
| integration |
Solutionsimplemented
Solutionsprogress
Follow-upsolutions plan
North HengdaLogistics Co.,Ltd.
Hengda’sassets,personnel,finance,organizationand businessare integratedinto thecompany'smanagementsystem
Completed Not applicable Not applicable Not applicable Not applicable
XIV. Internal control self-evaluation report or internal control audit report
1. Self-Evaluation Report on Internal Control
April 4, 2025
| Disclosing date of internal control auditing report full text |
| Index of the internal control auditing report full text |
http://www.cninfo.com.cn
belong to the scope of self-evaluationreport in the total assets of the Company’s
| consolidated financial statements |
100.00%
| Proportion of operation income of |
subsidiaries belong to the scope of self-evaluation report in the operation incomeof the Company’s consolidated financial
100.00%
| statements |
| Standards of Defects Evaluation | ||
| Category | Financial Report | Non-financial Report |
Qualitative criteria
1. Material
control; ineffecti
| ve supervision of internal control by the enterprise audit committee and internal audit agency. 2. Significant deficiencies: Internal control defects in accounting policies, accounting and financial |
reporting that are less serious and have lower
and significant defects.
| economic consequences than major defects, but may still cause the company to deviate from the control objectives. 3. General deficiencies: Other internal control defects in financial reporting other than major defects | 1. Criteria for identifying internal control deficiencies in daily operations of a |
company: 1) Material
long term. 2) Significant
| deficiencies: have a significant impact on the normal operations of the company: affect some of the company's main |
business type
certai
| n main business type/main functional area or general business type/general functional |
area of
recover at a certain cost.
| 2. Criteria for identifying internal control deficiencies in the realization of the company's business |
objectives: 1) Material
working capital (
| 0.8 times ≤ current asset turnover rate ≤ 1 time); |
RMB
| 800 million yuan). |
(2) Significant
working capital (
| 0.5 times ≤ current asset turnover rate ≤ 0.8 times); have a significant impact on any of the company's |
budget indicators (
400 million y
| uan ≤ |
profit ≤ RMB
gen
| eral management objectives; medium or less impact on working capital (current asset turnover rate < 0.5 times); medium or less impact on any category of the company's budget indicators (profit < |
RMB 400 million yuan).
in the
| company's internal safety control: |
1) Material
accidents. 2) Significant
| deficiencies: affecting the health/safety of some employees/the public, and major accidents. 3) General deficiencies: affecting the health/safety of a small number of |
and major accidents.
| 4. Criteria for identifying deficiencies in the company's internal environmental protection control: 1) |
Material
above. 2) Significant
| deficiencies: major environmental damage, major environmental incidents (national level III). 3) General |
deficiencies:
Quantitative criteria
| environmental impacts of moderate or less, and general environmental incidents (national level IV). | |
| 1. Material deficiencies：1）misstatement≥5% |
of the total profits; 2）
total assets; 3）
| misstatement≥1% of the total |
operating income; 4）
total amount of the owner’s equity.
2. Significant deficiencies: 1
| ) 3% of the total |
profits ≤misstatement＜
profits; 2）
| 0.5% of the total assets |
≤misstatement＜3% of the total assets；3）
≤misstatement＜
| 1% of the total operating |
income； 4）
owner’s equity ≤misstatement＜
| 1% of the |
total amount of the owner’s equity. 3.
deficiencies：1）misstatement＜
| 3% of the |
total profits；2）misstatement＜
total assets；3）misstatement＜
| 0.5% of the |
total operating income；4）misstatement＜
equity。
None
| 0.5% of the total amount of the owner’s | |
| Number of major defects in financial reporting(a) |
| Number of major defects in non-financial reporting (a) |
| Number of important defects in financial reporting(a) |
| Number of important defects in non-financial reporting(a) |
2. Internal Control Audit Report
√ Applicable □ Not applicable
Opinion in the internal control audit report
| Opinion in the internal control audit report | |
| As of December 31, 2024, the internal control over financial reporting of Bengang Bancai is effective in all material aspects in accordance with ‘Fundamental Rules of Enterprise Internal Control’ and relevant regulations. | |
| Internal Control Audit Report Status | |
Disclosure
April 4, 2025
| Disclosure date of audit report of internal control (full-text) | |
| Index of audit report of internal | http://www.cninfo.com.cn |
| control (full-text) | |
| Internal audit report’s opinion | Standard unqualified opinion |
| Whether there is significant defect in non-financial report |
No
Whether the accountants’ firm issued a qualified opinion on report of internal control audit
□ Yes √ No
Whether the internal control audit report issued by the accountants’ firm agree with the self-assessment report ofthe Board of Directors
√ Yes □ No
XV. Rectification of issues found in self-examination of special actions for listed company governanceDuring the reporting period, the company actively implemented the instructions of the "Opinions of the State Council on FurtherImproving the Quality of Listed Companies" and, in accordance with the requirements of the "Announcement on Launching a SpecialAction on the Governance of Listed Companies" (No. 69, 2020) of the China Securities Regulatory Commission, carried out self-examination and self-correction of listed company governance in accordance with the principle of seeking truth from facts, andcompiled the "Special Self-examination List of Listed Company Governance", which truly, accurately and completely reflects the legalproblems of listed companies and the relevant regulatory rectifications. By strengthening the endogenous driving force of corporategovernance, improving corporate governance system rules, and building a good corporate governance ecology, the company has furtherimproved the governance structure of listed companies with each performing its duties, assuming its responsibilities, coordinatingoperations, and effectively checking and balancing, laying a solid foundation for the high-quality development of listed companies andimproving the governance level of listed companies.
V. Environment and Social Responsibilities
I. Major Environmental IssuesWhether the listed company and its subsidiaries are key pollutant-discharging units announced by the environmental protectiondepartment
√ Yes □ No
Environmental protection related policies and industry standardsImplement the relevant ecological environment related policies such as the Environmental Protection Law of the People's Republic ofChina, the Environmental Impact Assessment Law of the People's Republic of China, the Water Pollution Prevention and ControlLaw of the People's Republic of China, the Air Pollution Prevention and Control Law of the People's Republic of China, the SoilPollution Prevention and Control Law of the People's Republic of China, and the Solid Waste Pollution Prevention and Control Lawof the People's Republic of China, and implement the Water Pollutant Emission Standard for the Iron and Steel Industry (GB13456-2012), the Pollutant Emission Standard for the Coking Chemical Industry (GB 16171-2012), the Air Pollutant Emission Standard forSintering and Sintering Pelletizing in the Iron and Steel Industry (GB28662-2012), the Air Pollutant Emission Standard for theIronmaking Industry (GB28663-2012), the Air Pollutant Emission Standard for the Steel Rolling Industry (GB28665-2012), and theAir Pollutant Emission Standard for Thermal Power Plants (GB13223-2011).
Environmental protection administrative license situation
The company involves 12 pollutant discharge units, 10 of which are key pollutant discharge units. They obtained the license for thefirst time in December 2018, and in December 2021, they applied for an extension to December 2026 according to the licensemanagement requirements. In 2022, two units changed their registrations and applied for a registration receipt for fixed pollutionsources in March 2020, which is valid until 2025. In 2024, two units reapplied for approval and were valid until February 2029 andApril 2029 respectively. The company strictly implements the stable operation of environmental protection facilities, strictly controlsthe emission of pollutants, discharges pollutants within the permitted scope every year, and submits quarterly implementation reportsand annual reports online as required.
Industry emission standards and specific information on pollutant emissions involved in production and operation activitiesName ofcompanyorsubsidiar
y
Types ofmainpollutants andcharacteristicpollutants
Namesof mainpollutant
s andcharacter
isticpollutant
s
Emissio
nmethod
Number
ofemission
outlets
Distribut
ion ofemission
outlets
Emissio
nconcentration/int
ensity
Impleme
ntedpollutantemissionstandard
s
Totalemissionamount
Approve
d totalemissionamount
Exceedi
ngemissionstandard
sBengangSteelPlatesCo., Ltd.
Wastewaterpollutants
COD
continuous
EnergyPlantWastewaterTreatme
14 50
50.69
tons
Notapproved by thegovernment
noneBengangSteelPlatesCo., Ltd.
Wastewaterpollutants
Ammonianitrogen
continuous
| nt Plant |
| Energy |
PlantWastewater
0.31 8
3.35
tons
| Treatme | Not |
approved by thegovernm
none
BengangSteelPlatesCo., Ltd.
Exhaustpollutants
Particles
Continuous andintermittent
| nt Plant |
| Raw |
materialdumper,transferstation,orereceiving trough,pre-batch;iron-makingtappingyard,furnacetop, fuel,solvent,wholegrain,ore coketrough,sinteringmachineheaddustremoval,machinetail dustremoval;steelmakingmoltensteelpretreatment,north-southbackflowstation,tundish,primarydustremoval,secondary dustremoval,refiningdustremoval;specialsteelelectricfurnace,refining
Rawmaterials12-15;sintering
1.36-28;
ironmaking 0.76-8;steelmaking 0.6-10;specialsteel 0.7-10;coking
0.7-7;
powergeneration 0.2-7;coldrolling;6-18 hotrolling2-6.
Rawmaterials25;sintering50-30;ironmaking 25;steelmaking20-50;specialsteel 20;coking10-50;powergeneration10-30;coldrolling20; hotrolling20-30.
Smoke
tons,dust9518tons
Notapproved by thegovernment
none
coaladding,cokepushing,dryquenching,chimneydesulfurizationanddenitrification;powergeneration boilerdustremoval,desulfurizationanddenitrification;coldrollingacidregeneration,pickling,straightening,weldingmachine,leveling,annealing,roasting;hotrollingheating
| furnace. |
BengangSteelPlatesCo., Ltd.
Exhaustpollutants
Sulfurdioxide
Continuous andintermittent
machinehead;cokeovenchimney; powerboilerdesulfurization;coldrollingroasting,annealin
| g; hot | Sintering |
machinehead 13-40; cokeovenchimney7-17;powergeneration 2-21;coldrolling11-25;hot
| rolling | Sintering |
machinehead200;cokeoven 50-100;powergeneration 100-200;coldrolling100; hot
2167tons
Notapproved by thegovernment
none
heating
| furnace. | 3-44. | 150 |
BengangSteelPlatesCo., Ltd.
Exhaustpollutants
Nitrogenoxides
Continuous andintermittent
Sinteringmachinehead;cokingchimney; powerboiler;coldrollingroasting;annealing; hotrollingheatingfurnace.
machinehead 25-77;cokingchimney77-177;powergeneration 20-60; coldrolling84-94;hotrolling
| 10-100. | Sintering |
machinehead300;cokingchimney150-500;powergeneration 100-200;coldrolling200; hotrolling
6195tons
Notapproved by thegovernment
none
Treatment of pollutants
In 2024, the Company will coordinate the overall situation of corporate development and environmental protection, comprehensivelypromote ultra-low emission transformation, adopt a process technology route that combines source reduction, process control, and end-of-pipe treatment, and complete 65 ultra-low emission transformation projects, including the dust removal system transformation ofthe former second operation area of the Ironmaking General Plant, the dust removal transformation of the raw materials and steelmakingareas of the steelmaking plant, the electrostatic precipitator transformation of the sintering machine head, the heat treatmenttransformation of the production line of the hot rolling plant, and the transformation of the scrap steel yard of the resource servicebranch. With the gradual commissioning of the projects, the company's total pollutant emissions have continued to decline, and thecompany's environmental protection management and control capabilities have been significantly improved. The total amount ofpollutant emissions decreased year-on-year: sulfur dioxide decreased by 47.67%, and nitrogen oxides decreased by 29.91%.
The Company has made every effort to promote the company's clean transportation work, managed vehicle emission standards formore than 1,000 materials, introduced 3,320 National VI vehicles and 60 electric heavy trucks, gradually eliminated old vehicles andnon-road mobile machinery that do not meet ultra-low requirements, and deploy battery swap stations, charging piles, hydrogen stationsand other facilities on major transportation routes to broaden the application scenarios of new energy vehicle services. The companycompleted the corresponding transformation of related systems such as material holding and metering. The control of vehicles involvingbulk materials and products of National VI and above is under control, and all functions required for clean transportation requirementshave been realized in stable operation. The transportation vehicles and non-road mobile machinery in the factory meet the requirementsof ultra-low emission clean transportation publicity. The average level of clean transportation + electric card ratio has increased from68% to 81.75% (including: clean transportation ratio 77.07%), and the ultra-low emission publicity of clean transportation will becompleted in the second half of 2024.
Environmental Self-Monitoring ProgramDuring the reporting period, the following monitoring points were manually monitored for pollution sources: 279 flue gas monitoringpoints, 13 wastewater monitoring points, 19 factory boundary noise monitoring points, and 12 air dust fall points. (1) 279 flue gasmonitoring points: 203 organized monitoring points and 76 unorganized monitoring points. According to the monitoring plan, themonitoring was carried out at weekly, monthly, quarterly, semi-annual, and annual frequencies, completing routine monitoring tasksfor unorganized and organized atmospheric flue gas. A total of 704 monitoring data were obtained throughout the year. (2) 13wastewater monitoring points: According to the monitoring plan, the monitoring was carried out at weekly, monthly, and quarterlyfrequencies, and 1,264 monitoring data were obtained throughout the year. (3) 19 factory boundary noise monitoring points: Accordingto the monitoring plan, the monitoring was carried out at quarterly frequencies, and 116 monitoring data were obtained throughout theyear. (4) 12 air dust fall points: According to the monitoring plan, the monitoring was carried out at quarterly frequencies, and 124monitoring data were obtained throughout the year.
Emergency Plan for Sudden Environmental Events
The company and its 13 subordinate units strictly carry out environmental emergency management in accordance with the current lawsand regulations such as the Law of the People's Republic of China on Response to Emergency Events, the Notice on Issuing theGuidelines for Risk Assessment of Sudden Environmental Events in Enterprises (Trial), and the Measures for the Administration ofFiling of Emergency Plans for Sudden Environmental Events in Enterprises and Institutions (Trial), complete the revision of theemergency plan for sudden environmental events, re-carry out risk assessment and emergency resource investigation, and complete theassessment and filing work in accordance with the management requirements of the Municipal Bureau. At the same time, all units ofthe company formulated a 2024 exercise plan in accordance with the plan and carried out corresponding plan exercises.
Investment in environmental governance and protection and payment of environmental protection tax
1. The operating expenses of environmental protection facilities in 2024 are 1.003 billion yuan, and the environmental protection tax
paid is 24.27 million yuan.
2. In 2024, an investment of 1.84 billion yuan was made to fully promote ultra-low emission transformation.
Measures taken to reduce its carbon emissions during the reporting period and their effects
?Applicable □Not applicable
Through technology upgrades, equipment transformation, energy conservation and emission reduction measures, the company hasreduced energy consumption per unit of output value, and unit carbon emissions have decreased year by year. The company hasachieved fruitful results in green and low-carbon development. Give full play to the synergistic advantages of smelting facilities,process structure, energy structure, and material technology, and propose three low-carbon metallurgical technology paths, which willbe implemented in stages to meet customer needs. High-quality scrap steel is melted into "semi-steel" molten steel in an electric furnace,and 50% molten iron transported from the blast furnace to the electric furnace is added. They are transported together for convertersmelting and then rolled. Taking the production of hot-dip galvanized products as an example, this path reduces carbon by 34%compared to the long process production of slabs, and reduces it by 26% to the end product. Considering the green electricity deductionof the entire process, it reduces it by 38% to the end product. Environmental product declarations for six products, including hot-dipgalvanized IF steel, cold-rolled IF steel, and hot-rolled pickled low-carbon stamping steel, have been issued, and third-party EPDcertification has been carried out. Through the implementation of photovoltaic power generation projects, the three cold rolling mills,storage and transportation center, sewage treatment center, 2250 hot rolling mill and office building, storage and transportation center,and parking lot of Building 4 have a construction area of 310,000 square meter, with an average annual power generation of 15.081million kWh. The electric furnace project of Bengang Plate Special Steel Division has introduced new technologies and equipmentfrom Japan Steel Plantech (SPCO for short). It is the first Japanese SPCO ecological electric furnace (ECOARC electric furnace) inChina. It adopts vertical furnace continuous scrap preheating and flat molten pool smelting technology, representing the internationaladvanced level of electric furnace technology today. The carbon emission per ton of steel in the whole process is 0.43t, a low-carbonleading level, and the use of Bengang's green electricity resources to achieve a near "zero carbon" production line.Administrative penalties for environmental issues during the reporting periodName of companyor subsidiary
Reason for penalty Violation Result of penalty
Impact on theproduction andoperation of thelisted company
Correctivemeasures of thecompany
| none | none | none | none | none | none |
Other environmental information that should be disclosed
None
Other environmental protection related informationNone
II. Social ResponsibilityFor details, please refer to the 2024 Environmental, Social and Governance (ESG) Report of Bengang Plate Co., Ltd. disclosed by thecompany on www.cninfo.com.cn on April 4, 2025.
III. Consolidation and expansion of poverty alleviation achievements and rural revitalizationThe company continues to deepen the practice of "I do practical things for the people". In 2024, all 13 projects in 10 aspects of the keylivelihood projects of "I do practical things for the people" have been implemented, which continuously improves the sense of gain,happiness and security of the employees. Strictly implement the working principle of "build as much as possible, help as much aspossible, dynamic management, and precise policy implementation", effectively solve problems for needy employees, and issue406,500 yuan of relief funds to 27 needy employees throughout the year, promote the full coverage of filing and assistance for needyemployees who meet the filing standards, and effectively do things that benefit the people's livelihood, things that warm the people'shearts, and things that conform to the will of the people.
The company actively selects outstanding cadres to participate in rural revitalization work, and currently 2 people serve as the firstsecretaries of the village. The village cadres closely focus on the guiding ideology and policies of enriching and benefiting the peopleof the central and provincial governments on rural revitalization work, based on the actual situation of the villages they are stationedin, do not forget their original intentions, keep their missions in mind, and have completed the consolidation and expansion of povertyalleviation achievements and rural revitalization work in 2024.
VI. Important Events
I. Implementation of commitments
1. Commitments that the actual controller, shareholders, related parties, acquirers and the company and
other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of thereporting period
?Applicable □Not applicable
Reason forcommitment
Commitment
party
Commitmenttype
Commitmentcontent
Commitment
time
Commitment
period
Performance
status
Commitmentsmade inacquisitionreports orequity changereports
Angang GroupCo., Ltd.
Othercommitments
independence
| of Bengang |
Steel Plates Co.,
Group Co., Ltd.
| promises as |
follows:
1.Angang
Group Co., Ltd.
Steel Plates Co.,Ltd. separate interms of assets,personnel,finance,institutions and
| business, and |
strictly abide by
SecuritiesRegulatoryCommission ontheindependence
| of listed |
companies, andwill not use itscontrolling
thestandardized
| operation of Bengang Steel |
Plates Co., Ltd.,
Plates Co., Ltd.,
| or damage the |
August 20,2021
Long term In progress
Plates Co., Ltd.
| and other |
shareholders.
Co., Ltd. and itscontrolledsubsidiariesguarantee not toillegally occupy
| the funds of Bengang Steel |
Plates Co., Ltd.
controlledsubsidiaries inany way. 2. Theabovecommitments
| will remain |
valid during the
controls
| Bengang Steel |
Plates Co., Ltd..
Group Co., Ltd.
| fails to fulfill the above |
commitments
Plates Co., Ltd.,
| Angang Group Co., Ltd. will bear the |
correspondingcompensation
Angang GroupCo., Ltd.
Othercommitments
| liability. |
| To avoid |
horizontalcompetition,
With regard to
| the overlap of |
somebusinessesbetween
Plates Co., Ltd.
| after the completion of |
this acquisition,
with the
| requirements of |
August 20,2021
Long term In progress
regulations andrelevantpolicies,
| Angang Group Co., Ltd. will, within 5 years |
from the date of
commitment,
| and strive to achieve the same within a shorter period of time, in |
accordance
requirements ofrelevantsecuritiesregulatoryauthorities, andon the premise
| of complying with the laws, |
regulations andrelevantregulatory rules
that time, and in
| line with the principle of benefiting the |
development of
Plates Co., Ltd.andsafeguardingthe interests ofshareholders,
| especially the interests of small and |
medium-sizedshareholders,steadily
related
| businesses to resolve the problem of |
horizontal
comprehensively using a varietyof methods suchas assetrestructuring,businessadjustments,
| and entrusted |
management.
solutionsinclude but are
| not limited to: |
restructuring:
| adopt cash |
consideration or
consideration
| and other |
methods
and regulations
| to purchase assets, asset |
replacement,asset transfer or
restructuringmethods,
| gradually sort |
out and
withoverlappingbusinesses, and
| eliminate the |
overlap of some
Businessadjustment: sortout the business
| boundaries and make every |
effort to achievedifferentiatedoperations, such
ways to achievebusinessdifferentiation
| through asset |
transactions,business
differentiation
| in business |
composition,
application
| field and |
customer
Entrustedmanagement:
| by signing an |
entrustment
decision-
| making power and |
power involvedin the operation
| of some relevant assets |
withoverlapping
the other party
| for unified |
management; 4)
solutions within
| the scope permitted by |
laws,regulations andrelevant
implementation
| of the above solutions is subject to the |
necessaryreview
listed
| companies, the |
approval
securitiesregulatory
| authorities and |
relevantcompetent
accordance
| with relevant laws and regulations. (2) Angang Group |
Co
specificimplementation
| plan and time schedule for resolving the |
issue of overlapbetween
Plates Co., Ltd..
| Angang Group Co., Ltd. will fulfill its |
informationdisclosureobligations inaccordance
regulations in a
| timely manner after |
circumstances,
| when Angang |
Group Co., Ltd.
subsidiariesobtain businessopportunities
| that may compete with Bengang Steel |
Plates Co., Ltd.'business,
Co., Ltd. will
| make every effort to give Bengang Steel |
Plates Co., Ltd.prioritydevelopment
priorityacquisition
| rights for such |
opportunities,ensure that the
relevant
| transaction is fair and |
reasonable, and
businesspracticesfol
| lowed in |
normalcommercialtransactionswithindependentthird parties as
strictly abide bylaws,regulations and
| the provisions |
of the "Articles
Steel Plates Co.,Ltd. Co., Ltd."and its relevantmanagement
| systems, and |
will not use its
indirect
| controlling |
Plates Co., Ltd.
| to seek |
improperinterests,thereby
othershareholders of
| Bengang Steel |
Plates Co., Ltd.;
commitments
| made by Angang Group Co., Ltd. are |
valid during theperio
controls
| Bengang Steel |
Plates Co., Ltd..If the rights and
Plates Co., Ltd.
| are damaged due to the |
violation of theabovecommitments,
willing to bearthecorrespondingliab
| ility for damages. |
Angang GroupCo., Ltd.
Othercommitments
related-partytransactionsbetween
| Angang Group Co., Ltd. and |
listedcompanies,
followingcommitments:
| 1. Angang |
Group Co., Ltd.will ensure that
Plates Co., Ltd.has independent
| business and |
complete assets,
August 20,2021
Long term In progress
production,
| supply, sales and other |
supporting
otherenterprises
| controlled by Angang Group Co., Ltd. will not use their control over Bengang Steel |
Plates Co., Ltd.to seek priority
with BengangSteel Plates Co.,
| Ltd. and its subsidiaries. 3. Angang Group Co., Ltd. and |
otherenterprises
reduceunnecessarytransactions
| with Bengang |
Steel Plates Co.,
there are truly
| necessary and |
unavoidabletransactions,
otherenterprises
| controlled by Angang Group Co., Ltd. will |
sign agreements
Steel Plates Co.,
| Ltd. and its subsidiaries in |
accordance
fairness, equity,
| and equal |
compensation,
legal
| procedures. In |
accordance
requirements of
| relevant laws, |
normative
| documents and the provisions of the Articles of Association of Bengang |
Steel Plates Co.,
performinformationdisclosureobligations andrelevantinternaldecision-
| making and |
approval
accordance
| with the law, |
and ensure that
Plates Co., Ltd.
| and its |
subsidiariesunder
unfair
| compared to market prices, |
and will not usesuch
damages thelegitimate
| rights and interests of Bengang Steel |
Plates Co., Ltd.
shareholders of
| Bengang Steel |
Plates Co., Ltd..
4. If the above
commitmentsare violated and
Co.,
| Ltd. will |
compensate
Commitmentsmade duringinitial publicoffering orrefinancing
Companydirectors andseniormanagers/Benxi Steel GroupCo., Ltd.
Othercommitments
relevant
| regulations of the China |
SecuritiesRegulatoryCommission,all directors andseniormanagement of
followingcommitments toensure that thecompany's
| measures to |
make up for thedilutedimmediate
effectivelyimplemented: 1.
| I promise to perform my |
duties faithfullyand diligently to
legitimate
| rights and |
interests of the
allshareholders. 2.I promise not totransfer benefitsto other units orindividualswithoutcompensationor under unfair
| conditions, nor to harm the |
interests of the
other ways. 3. I
| promise to restrict the |
officialconsumptionbehavior of thecompany's
seniormanagement. 4.I promise not to
| use the |
company's
consumption
| activities that are not related to the performance of their duties. 5. I |
May 22, 2019Long term In progress
within the scope
| of my duties and authority, make every effort to promote the |
remunerationsystem
directors or theremunerationand assessmentcommittee to be
| linked to the |
implementation
company'sme
| asures to |
make up for thereturn, and votein favor of therelevantproposalsreviewed by thecompany's
shareholders'
| meeting (if I |
have the right tovote). 6. If thecompany
implementequity
| incentives, I promise to, |
within the scope
equity incentiveexerciseconditions to be
| announced by |
the company tobe linked to theimplementation
company's
| measures to |
make up for thereturn, and votein favor of therelevantproposalsreviewed by thecompany's
shareholders'
| meeting (if I |
vote). 7. If theChinaSecuritiesRegulatoryCommission
| makes other new regulatory provisions on |
compensation
commitments
| between the date of this |
commitment
corporate
| bonds, and the |
abovecommitmentscannot meet therequirements of
SecuritiesRegulatoryCommission,
| the company promises to issue a |
supplementary
accordance
| with the latest regulations of the China |
SecuritiesRegulatoryCommission.
controllingshareholder,
| Benxi Steel Group Co., Ltd., promises |
not to interfere
company'sbusinessmanagementactivities
| beyond its authority and not to infringe on the |
company's
Bengang GroupCo., Ltd. andBenxi SteelGroup Co., Ltd.
Othercommitments
| interests. |
| 1. Bengang |
Internationaltrade Co., Ltd.
Co., Ltd.'s sales
| companies in |
July 24, 2019Long term In progress
guaranteepersonnelindependence,businessindependence,financialindependence,
| and asset |
independence,
that they are not
| in the same place of |
registration and
the same office;
2. In view of the
| fact that |
Bengan
Plates Co., Ltd.
| has recently completed the registration of foreign trade operators, and |
considering thatthequalificationlevel
customs import
| and export |
qualificationlevelcertificationstill need to begradually
lacks the actual
| conditions and capabilities to |
independentlycarry out import
business in the
| short term. In |
order to ensure
businessdevelopment of
| Bengang Steel |
Plates Co., Ltd.,
BengangInternational
| Trade Co., Ltd. |
will continue toact as the agent
export business
| of Bengang Steel Plates |
a period of no
| more than 5 years from the |
date of issuance
commitment,
| until Bengang Steel Plates Co., Ltd. |
believes that itcanindependentlycarry out import
period,BengangInternationalTrade Co., Ltd.
| will provide |
necessary
Plates Co., Ltd.to establish and
| improve its import and |
export business.
BengangInternational
| Trade Co., Ltd.'s sales companies are |
only
BeiyingIron&Steel
| Group, and |
never sell third-
products. 3. The
| three sales companies of the Group, |
namelyShanghai
Sales Co., Ltd.,Shanghai
| Bengang Steel Materials Co., Ltd. and |
Guangzhou
Co., Ltd., are no
| longer actually |
engaged in anybusiness
District,Shanghai
| issued an |
announcement
Firm
| (Shanghai) as the bankruptcy |
administrator.Aftercommunicating
bankruptcyadministrator,
| the relevant procedures for |
the cancellation
Sales Co., Ltd.will be handledimmediately
| after the completion of |
theaforementionedbankruptcyliquidation
Shanghai
| Bengang Steel Materials Co., |
Ltd. is a holding
Shanghai
| Bengang Steel Trading Co., Ltd. and was cancelled in |
November2020. (3)
Guangzhou
July 2022.
Bengang GroupCo., Ltd. andBenxi SteelGroup Co., Ltd.
Othercommitments
Group Co., Ltd.
| and Bengang |
Group Co., Ltd.(hereinaftercollectively
the "Group"), as
| the direct and indirect |
July 24, 2019Long term
Normalexecution
shareholders of
| Bengang Steel |
Plates Co., Ltd.(hereinafter
"Bengang
| Plate"), hereby make the |
followingcommitments toavoidhorizontal
period when theGroup serves as
| the controlling shareholder of |
Ben
otherenterprises
| controlled by the Group |
except Bengang
or develop any
| products that |
compete or may
abroad, will not
| directly or |
indirectly
business
| operated by Bengang Plate and its |
subsidiaries,
compete or may
| compete with the products |
p
businesses
| operated by Bengang Plate and its subsidiaries. 2. If Bengang Plates and its |
Group and otherenterprises
| controlled by |
the Group will
expanded
| business of |
Bengang Plates
competition
| with the |
expandedbusines
Bengang Plates
| and its |
subsidiaries,
the competition
| with Bengang Plates in the |
following ways:
subsidiaries; (2)
| incorporate the |
competingbusiness intoBengang Plates
subsidiaries in a
| legal and |
compliant
competing
| business to an unrelated third |
party. 3. If theGroup has anybusiness
business
| operations of |
Bengang Plates,the Group shallimmediatelynotify Bengang
Bengang Platesrespondsaffirmatively
| within a |
reasonableperiod specified
notification thatit is willing to
| utilize the |
businessopportunity, the
business
| opportunity to |
Bengang Plateson terms no less
independentthird party. 4. If
| the above |
commitmentsare violated, theGroup is willing
responsibilitiesarising
| therefrom and |
fully
indemnifyBengang Platesfor all direct orind
| irect losses |
caused thereby.
5. This letter of
commitment
the period when
| the Group serves as the |
controlling
Bengang GroupCo., Ltd. andBenxi SteelGroup Co., Ltd.
Othercommitments
| shareholder of Bengang Plates. |
| Benxi Steel |
Group Co., Ltd.
Group Co., Ltd.(hereinaftercollectively
| referred to as |
"the Group"), as
indirectcontrollingshareholders of
| Bengang Steel Plates Co., Ltd. |
July 24, 2019Long term
Normalexecution
"Bengang
| Plate"), hereby promise to regulate the |
relatedtransactions
independent
| legal person status of Bengang Plate, guarantee the |
independentoperation andindependentdecision-
businessindependence,
| asset integrity, |
personnelindependence
independence
| of Bengang Plate, so as to avoid and |
reduceunnecessaryrelatedtransactions;the Group willstrictly control
transactionsbetween
| Bengang Plate and its subsidiaries. 2. |
The Group andothercompaniescontrolled by it
misappropriate
| the funds of Bengang Plate and its subsidiaries by |
borrowing,
advancingfun
| ds or other means, nor |
require
othercompaniescontrolled by it.
| 3. The Group and other |
companiescontrolled by it
relatedtransactions
| with Bengang Plate. When |
conductingrelatedtransactions
nece
| ssary and |
unavoidable,the decision-makingauthority,decision-makingprocedures, andavoidancesystemstipulated in the
Bengang Plates
| and the |
decision-
transactionsshall be strictlyimplemented,the role of theSupervisory
| Board and |
independent
utilized, and theinformationdisclosureobligations
| shall be |
conscientiously
transactions are
| conducted in |
accordance
openness,fairness, andequity in markettransactions andnormalcommercial
| terms. The |
companiescontrolled by itwill not require
| or accept |
Bengang Platesto provide morefavorableconditions thanany third party
markettransaction, and
| protect the interests of |
othershareholders ofBengang Plates
Pla
| tes from being harmed. 4. The Group guarantees that the above |
commitments
irrevocable
| during the |
period when theGroup is listedon the domestic
is its direct andindirectcontrolling
| shareholder. If |
any violation of
commitments
| occurs, the Group shall bear all losses caused to Bengang Plates. |
Whether thepromise isfulfilled ontime
Yes
2. If the company's assets or projects have profit forecasts and the reporting period is still within the profit
forecast period, the company shall explain whether the assets or projects have achieved the original profitforecast and the reasons for this.
□Applicable ?Not applicable
II. Non-operating capital occupation of listed companies by controlling shareholders andother related parties
□Applicable ?Not applicable
During the reporting period, there was no non-operating capital occupation of the listed company by the controlling shareholder orother related parties.
III. Illegal external guarantees
□Applicable ?Not applicable
The company did not provide any illegal external guarantees during the reporting period.IV. The Board of Directors’ Statement on the Latest “Non-standard Audit Report”
□Applicable ?Not applicable
V. Explanation of the Board of Directors, the Board of Supervisors and the IndependentDirectors (if any) on the “Non-standard Audit Report” of the Accounting Firm during theReporting Period
□Applicable ?Not applicable
VI. Description of changes in accounting policies, accounting estimates, or corrections ofsignificant accounting errors compared with the previous year's financial report
?Applicable ?Not applicable
1. Change of major accounting policy during this reporting period
(1) Implementation of Interpretation of Enterprise Accounting Standards No. 17
The Ministry of Finance issued the "Interpretation of the Enterprise Accounting Standards No. 17 "(Accounting [2023] No. 21, hereinafter referred to as "Interpretation No. 17") on October 25, 2023.
A. Classification of current liabilities and non-current liabilitiesInterpretation No. 17 clarifies:
? If an enterprise does not have a substantive right to postpone the repayment of a liability for more than oneyear after the balance sheet date on the balance sheet date, the liability should be classified as a currentliability.? For liabilities arising from an enterprise's loan arrangement, the enterprise's right to postpone the repaymentof the liability for more than one year after the balance sheet date may depend on whether the enterprise hascomplied with the conditions stipulated in the loan arrangement (hereinafter referred to as the contractualconditions). When judging whether it has a substantive right to postpone the repayment of the debt, theenterprise should only consider the contractual conditions that should be followed on or before the balance
sheet date, and should not consider the contractual conditions that should be followed by the enterprise afterthe balance sheet date.? Liability repayment for the purpose of classifying the liquidity of liabilities means that the enterprisedischarges the liability by transferring cash, other economic resources (such as goods or services) or theenterprise's own equity instruments to the counterparty. If the terms of a liability result in the enterprisesettling the liability by delivering its own equity instruments at the option of the counterparty, if the enterpriseclassifies the above option as an equity instrument and recognizes it separately as the equity component of acompound financial instrument in accordance with the provisions of Accounting Standard for Enterprises No.37 - Presentation of Financial Instruments, the term does not affect the liquidity classification of the liability.
This interpretation will be effective from January 1, 2024. The aforementioned regulations have nosignificant impact on the Company's financial reports.
B. Disclosures about supplier financing arrangementsInterpretation No. 17 requires that when an enterprise makes a note disclosure, it should disclose informationrelated to supplier financing arrangements in a summary manner to help users of financial statements assessthe impact of these arrangements on the liabilities, cash flows and liquidity risk exposure of the enterprise.The impact of supplier financing arrangements should also be considered when identifying and disclosingliquidity risk information. This disclosure provision only applies to supplier financing arrangements. Asupplier financing arrangement refers to a transaction with the following characteristics: one or morefinancing providers provide funds to pay the amount owed by the enterprise to its suppliers, and it is agreedthat the enterprise will repay the financing providers on the day or after its suppliers receive the payment inaccordance with the terms and conditions of the arrangement. Compared with the original payment due date,the supplier financing arrangement extends the payment period of the enterprise or advances the collectionperiod of the enterprise's suppliers.
This interpretation will be effective from January 1, 2024. The aforementioned regulations have nosignificant impact on the Company's financial reports.
C. Accounting treatment of sale and leaseback transactionsInterpretation No. 17 provides that when a lessee subsequently measures the lease liability arising from a saleand leaseback, the method of determining the lease payments or the modified lease payments shall not resultin the recognition of gains or losses related to the right of use obtained from the leaseback. When an enterprisefirst implements this provision, it shall make retrospective adjustments to sale and leaseback transactionsconducted after the first implementation date of Enterprise Accounting Standard No. 21 - Leases.
This interpretation will be effective from January 1, 2024. The aforementioned regulations have nosignificant impact on the Company's financial reports.
(2) Implement the "Interim Provisions on Accounting Treatment of Enterprise Data Resources"
On August 1, 2023, the Ministry of Finance issued the "Interim Provisions on Accounting Treatment ofEnterprise Data Resources" (Accounting [2023] No. 11), which applies to data resources that are recognizedas intangible assets or inventory and other assets in accordance with the relevant provisions of the EnterpriseAccounting Standards, as well as data resources that are legally owned or controlled by the enterprise andare expected to bring economic benefits to the enterprise, but do not meet the conditions for asset recognitionand are not recognized. The relevant accounting treatment, and put forward specific requirements for thedisclosure of data resources.This provision will take effect on January 1, 2024. Enterprises should adopt the prospective applicationmethod. Data resource-related expenses that have been expensed and included in profit and loss before theimplementation of this provision will no longer be adjusted. The implementation of this provision has nosignificant impact on the company's financial position and operating results.
(3) Implement the provisions of "Interpretation No. 18 of the Enterprise Accounting Standards on the
accounting treatment of quality assurance that is not a single performance obligation"On December 6, 2024, the Ministry of Finance issued the “Interpretation No. 18 of the Enterprise AccountingStandards" (Accounting [2024] No. 24, hereinafter referred to as "Interpretation No. 18"), which will beimplemented from the date of issuance, and enterprises are allowed to implement it in advance from the yearof issuance.Interpretation No. 18 stipulates that when accounting for the estimated liabilities arising from the qualityassurance of the guarantee type that does not belong to the single performance obligation, it shall be debitedto the "principal business cost" and "other business cost" and other accounts, and credited to the "estimatedliabilities" account according to the relevant provisions of the "Enterprise Accounting Standard No. 13-Contingencies" according to the determined estimated liabilities, and shall be listed in the "operating costs"in the income statement and the "other current liabilities", "non-current liabilities due within one year","estimated liabilities" and other items in the balance sheet.When the enterprise implements the content of this interpretation for the first time, if the original provisionof the quality assurance of the guarantee type is included in the "sales expenses", it shall be retroactivelyadjusted in accordance with the change in accounting policies. The above provisions have no significantimpact on the financial statements of the Company.
2. Change of accounting estimate during the reporting period
There is no significant changes in accounting estimates during the reporting period.
VII. Explanation of changes in the scope of the consolidated financial statements comparedwith the previous year's financial report
?Applicable □Not applicableThe company acquired 100% equity of North Hengda Logistics Co., Ltd. held by Benxi Steel Group Co., Ltd. After the completionof this transaction, Hengda Logistics became a wholly-owned subsidiary of the company and was included in the company'sconsolidated financial statements.
VIII . Appointment and dismissal of accounting firms
Accountant’s firm currently appointed
Name of domestic accounting firm BDO China Shu Lun Pan Certified Public Accountants LLPRemuneration of domestic accounting firm (RMB 10,000)
Continuous years of audit services provided by domesticaccounting firm
Name of domestic certified public accountant Wang Hongna, Fu YangyiContinuous years of audit services provided by domesticcertified public accountant
1 year for Wang Hongna, 2 years for Fu YangyiName of foreign accounting firm (if any) Not applicableContinuous years of audit services provided by foreignaccounting firm (if any)
Not applicableName of foreign certified public accountant (if any) Not applicableContinuous years of audit services provided by foreign certifiedpublic accountant (if any)
Not applicableWhether to hire a new accounting firm during the current period
□Yes ?No
Employment of internal control audit accounting firms, financial advisors or sponsors?Applicable ?Not applicableThis year, the company hired BDO China Shu Lun Pan Certified Public Accountants LLP as its internal control audit accountingfirm, and the audit fee was RMB 600,000.
IX. Situations of delisting after the disclosure of the annual report
□Applicable ?Not applicable
X. Bankruptcy and reorganization related matters
□Applicable ?Not applicable
The company did not have any bankruptcy reorganization related matters during the reporting period.
XI. Major litigation and arbitration matters
?Applicable ?Not applicable
Basic
Amount
| information | involved (in |
Whether
Progress of
| estimated | litigation |
Results and
Execution of
| impact of | litigation |
Date of Disclosure
(arbitration)
| of litigation | 10,000 yuan) | liabilities are |
formed
| (arbitration) | litigation |
(arbitration)
judgment
| (arbitration) | disclosure | index | ||
| Summary of |
matterswhere thecompanydoes notmeet thedisclosurestandards formajorlitigation
5,405.7 None Under review None
Handleaccording tolegalprovisions
XII . Penalties and Rectification?Applicable ?Not applicable
Name Type Reason
InvestigationPenalty Type
Conclusion (if
any)
Disclosure Date
Disclosure
Index
Bengang SteelPlates Co., Ltd.,Gao Lie, ShenQiang, ZhaoZhonghua
other
(arbitration)
Before 2019,
the companyfailed topromptly settlethe port andtransitconsumption ofraw materialsprocured onbehalf ofothers, resultingin inaccuratedisclosure ofthe amounts ofrelevant reportitems in thecurrent period;at the sametime, there wasalso a lack ofindependencein theprocurementbusiness andirregularmanagement ofaccounting
| files. |
ChinaSecuritiesRegulatoryCommissiontakesadministrativesupervisionmeasures
Issue a warningletter andrecord it in thesecurities andfutures marketintegrity file
May 18, 2024
Announcementon ReceivingWarning Letterfrom LiaoningSecuritiesRegulatoryBureau (No.:
2024-022)
XIII. Integrity of the company and its controlling shareholders and actual controllers
□Applicable ?Not applicable
XIV. Major Related-Party Transactions
1. Related-party transactions related to daily operations
?Applicable ?Not applicable
Relatedparty
Relationship
Transactions type
Relatedpartytransactioncontent
Pricingprinciplesofrelatedpartytransactions
Relatedpartytransactionprice
Amou
AffiliatedTransaction(tenthousandYuan)
Proportion
| nt of | of the |
amou
similartransactions
Approvedtransactionamount (tenthousandyuan)
Whethertheapprovedquotaisexceeded
Settlementmetho
| nt of | d of |
relatedpartytransactions
Themarket priceofsimilartransactionsavailable
Disclosuredate
Disclosureindex
elScrapResources(Anshan)Co.,
| Ltd. | Also |
belong toAngangIronandSteel
Purchase ofGoods/AcceptanceofServices
Procurement ofMainRawMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
112,4
80.20
2.06%
157,7
No
Accordingto theagreement
Yes
2-Dec-
2023-
AnsteelCo.,Ltd.
| Group |
| Also |
belong toAngangIronandSteel
Purchase ofGoods/AcceptanceofServices
Procurement ofMainRawMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
3,162.
0.06% 3,200 No
Accordingto theagreement
Yes
2-Dec-
2023-
| Group | |
| Anste |
elGroupInternationalEconomic &TradeCo.,
Alsobelong toAngangIronandSteelGroup
Purchase ofGoods/AcceptanceofServices
Procurement ofMainRawMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
18,58
9.30
0.34%
28,00
No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Anste |
elGroupMiningGongchanglingCo.,
Alsobelong toAngangIronandSteelGroup
Purchase ofGoods/AcceptanceofServices
Procurement ofMainRawMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
30,86
6.73
0.56%
31,00
No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Ansha |
n IronandSteelGroupCo.,
| Ltd. | Also |
belong toAngangIron
Purchase ofGoods/Acceptanceof
| and | Procu |
rement ofMainRawMater
Market-orientedPrinciples
RelatedPartyAgreementPrice
2,117.
0.04% 2,200 No
Accordingto theagreement
Yes
2-Dec-
2023-
| Steel Group | Services | |
| Benxi |
BeiyingIron&Steel(Group)Co.,
Alsobelong toBengangGroup
Purchase ofGoods/AcceptanceofServices
Procurement ofMainRawMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
1,145,
170.4
20.94
%1,493,
No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Benxi |
Iron&Steel(Group)Mining Co.,
Thesameparentcompany
Purchase ofGoods/AcceptanceofServices
Procurement ofMainRawMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
709,5
12.97
%
750,0
No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Benxi |
Iron&Steel(Group)IndustrialDevelopmentCo.,
Thesameparentcompany
Purchase ofGoods/AcceptanceofServices
Procurement ofMainRawMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
22,31
4.12
0.41%
31,00
No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Benxi |
Iron&Steel(Group)Co.,
parentcompany
| Ltd. | Purch |
ase ofGoods/AcceptanceofServic
Procurement ofMainRawMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
42.3 0.00% 50 No
Accordingto theagreement
Yes
2-Dec-
2023-
AnsteelCo.,Ltd.
| es | |
| Also |
belong toAngangIronandSteel
Purchase ofGoods/AcceptanceofServices
Procurement ofAuxiliaryMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
316.1
0.01% 320 No
Accordingto theagreement
Yes
2-Dec-
2023-
| Group | |
| Anste |
elGroupEngineeringTechnologyDevelopmentCo.,
Alsobelong toAngangIronandSteelGroup
Purchase ofGoods/AcceptanceofServices
Procurement ofAuxiliaryMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
730.4
0.01% 750 No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Anste |
elGroup
| Intern | Also |
belong to
| Anga | Purch |
ase ofGoods
| /Acce | Procu |
rement of
| Auxili | Marke |
t-orient
| ed | Relate |
dParty
35 0.00% 2,000 No
Accordingto the
Yes
2-Dec-
2023-
lEconomic &TradeCo.,
| Ltd. | ng |
IronandSteelGroup
ofServices
| ptance | ary |
Materials
ples
| Princi | ment |
Price
ment
| agree | ||
| Anste |
elGroupZhongyuanIndustrialDevelopmentCo.,
Alsobelong toAngangIronandSteelGroup
Purchase ofGoods/AcceptanceofServices
Procurement ofAuxiliaryMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
943.9
0.02% 1,000 No
Accordingto theagreement
Yes
2-Dec-
2023-
Anshan IronandSteelGroupCo.,Ltd.
| Ltd. | |
| Also |
belong toAngangIronandSteel
Purchase ofGoods/AcceptanceofServices
Procurement ofAuxiliaryMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
2,652.
0.05% 2,700 No
Accordingto theagreement
Yes
2-Dec-
2023-
BenxiSteelElectricalCo.,Ltd.
ParentCompany'sAssociate
| Group | |
| Purch |
ase ofGoods/AcceptanceofServic
Procurement ofAuxiliaryMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
18,22
6.98
0.33%
20,02
No
Accordingto theagreement
Yes
2-Dec-
2023-
| es | ||
| Benxi |
Iron&Steel(Group)MachineryManufacturingCo.,
Thesameparentcompany
Purchase ofGoods/AcceptanceofServices
Procurement ofAuxiliaryMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
18,82
1.64
0.34%
10,00
Yes
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Benxi |
Iron&Steel(Group)Construction Co.,
Thesameparentcompany
Purchase ofGoods/AcceptanceofServices
Procurement ofAuxiliaryMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
308.3 0.01%
10,00
No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Benxi |
Iron&Steel(Group)Equip
Thesameparentcompany
| ment | Purch |
ase ofGoods/AcceptanceofServic
Procurement ofAuxiliaryMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
1,816.
0.03% 1,900 No
Accordingto theagreement
Yes
2-Dec-
2023-
eeringCo.,
| Ltd. |
| Benxi |
Iron&Steel(Group)IndustrialDevelopmentCo.,
Thesameparentcompany
Purchase ofGoods/AcceptanceofServices
Procurement ofAuxiliaryMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
28,19
4.88
0.52%
30,00
No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Benxi |
Iron&Steel(Group)Information &Automation Co.,
Alsobelong toAngangIronandSteelGroup
Purchase ofGoods/AcceptanceofServices
Procurement ofAuxiliaryMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
701.6
0.01% 750 No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Benxi |
Iron&Steel(Group)Co.,
parentcompany
| Ltd. | Purch |
ase ofGoods/AcceptanceofServic
Procurement ofAuxiliaryMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
1,713.
0.03% 2,450 No
Accordingto theagreement
Yes
2-Dec-
2023-
| es | ||
| Liaoni |
ngHengtaiHeavyMachineryCo.,
Thesameparentcompany
Purchase ofGoods/AcceptanceofServices
Procurement ofAuxiliaryMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
1,005.
0.02% 1,695 No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Liaoni |
ngHengtongMetallurgicalEquipmentManufacturingCo.,
Thesameparentcompany
Purchase ofGoods/AcceptanceofServices
Procurement ofAuxiliaryMaterials
Market-orientedPrinciples
RelatedPartyAgreementPrice
15,24
5.29
0.28%
16,50
No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Panga |
ngGroupChengdu
| Vanad | Also |
belong toAngang
| Iron | Purch |
ase ofGoods/Acceptance
Procurement ofAuxiliary
| of | Marke |
t-orientedPrinci
| ples | Relate |
dPartyAgreement
236.1
0.00% 240 No
Accordingto theagreement
Yes
2-Dec-
2023-
TitaniumResourcesDevelopmentCo.,
| Ltd. | and |
SteelGroup
es
| Servic | Mater |
ials
BeiyingIron&Steel(Group)Co.,
| Ltd. |
Alsobelong toBengangGroup
Purchase ofGoods/AcceptanceofServices
Procurement ofEnergy andPower
Market-orientedPrinciples
RelatedPartyAgreementPrice
64,62
0.67
1.18%
60,00
Yes
Accordingto theagreement
Yes
2-Dec-
2023-
Iron&Steel(Group)Co.,
| Ltd. |
parentcompany
ase ofGoods/AcceptanceofServic
| es |
Procurement ofEnergy andPower
Market-orientedPrinciples
RelatedPartyAgreementPrice
28.35 0.00% 30 No
Accordingto theagreement
Yes
2-Dec-
2023-
AnsteelCo.,Ltd.
belong toAngangIronandSteel
| Group |
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
210.9
0.00% 246 No
Accordingto theagreement
Yes
2-Dec-
2023-
elGroupEngineeringTechnologyDevelopmentCo.,
| Ltd. |
Alsobelong toAngangIronandSteelGroup
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
1,610.
0.03% 3,625 No
Accordingto theagreement
Yes
2-Dec-
2023-
elGroupEngineeringTechnologyCo.,
| Ltd. | Anga |
ngIronandSteelGroup'sAssoc
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
13,59
3.01
0.25%
19,05
No
Accordingto theagreement
Yes
2-Dec-
2023-
| iate | |
| Anste |
elGroupZhongyuanIndustrialDevel
| opme | Also |
belong toAngangIronandSteel
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
1,378.
0.03% 2,800 No
Accordingto theagreement
Yes
2-Dec-
2023-
Co.,
| Ltd. |
AnsteelGroupAutomation Co.,Ltd.
belong toAngangIronandSteel
| Group |
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
5,101 0.09% 5,200 No
Accordingto theagreement
Yes
2-Dec-
2023-
AnsteelResourcesCo.,Ltd.
belong toAngangIronandSteel
| Group |
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
29.79 0.00% 30 No
Accordingto theagreement
Yes
2-Dec-
2023-
Anshan IronandSteelGroupCo.,Ltd.
belong toAngangIronandSteel
| Group |
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
110.3
0.00% 122 No
Accordingto theagreement
Yes
2-Dec-
2023-
BenxiSteelElectricalCo.,Ltd.
ParentCompany'sAssociate
ase ofGoods/AcceptanceofServic
| es |
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
1,400.
0.03% 1,450 No
Accordingto theagreement
Yes
2-Dec-
2023-
SteelGroupInternationalEconomic &TradeCo.,
| Ltd. |
Alsobelong toBengangGroup
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
7,973.
0.15%
8,031.
No
Accordingto theagreement
Yes
2-Dec-
2023-
BenxiSteelGroupCo.,Ltd.
ollingshareholderof theparentcomp
| any | Purch |
ase ofGoods/AcceptanceofServic
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
21,89
9.32
0.40%
36,20
No
Accordingto theagreement
Yes
2-Dec-
2023-
| es | ||
| Benxi |
BeiyingIron&Steel(Group)Co.,
Alsobelong toBengangGroup
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
13,80
5.32
0.25%
14,00
No
Accordingto theagreement
Yes
2-Dec-
2023-
Iron&Steel(Group)GuomaoTengda Co.,
| Ltd. |
Alsobelong toAngangIronandSteelGroup
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
62,83
8.64
1.15%
50,32
0.50
Yes
Accordingto theagreement
Yes
2-Dec-
2023-
Iron&Steel(Group)MachineryManufacturingCo.,
| Ltd. |
Thesameparentcompany
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
8,629.
0.16% 7,000 Yes
Accordingto theagreement
Yes
2-Dec-
2023-
Iron&Steel(Group)Construction Co.,
| Ltd. |
Thesameparentcompany
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
36,20
0.26
0.66%
42,00
No
Accordingto theagreement
Yes
2-Dec-
2023-
Iron&Steel(Group)Mining Co.,
| Ltd. |
Thesameparentcompany
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
0 0.00% 3,000 No
Accordingto theagreement
Yes
2-Dec-
2023-
Iron&Steel(Group)EquipmentEngineeringCo.,
| Ltd. |
Thesameparentcompany
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
111,8
63.91
2.05%
49,10
Yes
Accordingto theagreement
Yes
2-Dec-
2023-
Iron&Steel(Group)IndustrialDevelopme
| nt |
Thesameparentcompany
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
3,684.
0.07% 5,000 No
Accordingto theagreement
Yes
2-Dec-
2023-
| Co., Ltd. |
| Benxi |
Iron&Steel(Group)Information &Automation Co.,
Alsobelong toAngangIronandSteelGroup
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
20,17
5.41
0.37%
21,00
No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Benxi |
Iron&Steel(Group)Co.,
parentcompany
| Ltd. | Purch |
ase ofGoods/AcceptanceofServic
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
7,932.
0.15%
10,92
No
Accordingto theagreement
Yes
2-Dec-
2023-
| es | ||
| Delin |
LandportSupplyChainServicesCo.,
Alsobelong toAngangIronandSteelGroup
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
920.1
0.02% 1,010 No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Liaoni |
ngHengtaiHeavyMachineryCo.,
Thesameparentcompany
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
2,860.
0.05% 4,080 No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Liaoni |
ngHengtongMetallurgicalEquipmentManufacturingCo.,
Thesameparentcompany
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
1,019.
0.02% 2,000 No
Accordingto theagreement
Yes
2-Dec-
2023-
PangangGroupCo.,Ltd.
| Ltd. | |
| Also |
belong toAngangIronandSteel
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
168.5
0.00% 180 No
Accordingto theagreement
Yes
2-Dec-
2023-
OtherSubsidiaries ofAnsteelGroup
belong toAngangIronandSteel
| Group |
Purchase ofGoods/AcceptanceofServices
AcceptanceofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
108.1
0.00% 117 No
Accordingto theagreement
Yes
2-Dec-
2023-
AnsteelCo.,Ltd.
belong toAngangIronandSteel
| Group |
SaleofGoods/RenderingofServices
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
13,97
9.75
0.27%
14,14
No
Accordingto theagreement
Yes
2-Dec-
2023-
AnsteelChemicalTechnologyCo.,Ltd.
belong toAngangIronandSteel
| Group |
SaleofGoods/RenderingofServices
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
25,50
5.04
0.50%
25,60
No
Accordingto theagreement
Yes
2-Dec-
2023-
elGroupEngineeringTechnologyCo.,
| Ltd. | Anga |
ngIronandSteelGroup'sAssoc
SaleofGoods/RenderingofServices
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
4.77 0.00% 0 Yes
Accordingto theagreement
Yes
2-Dec-
2023-
| iate | |
| Anste |
elGroupInternationalEconomic &TradeCo.,
Alsobelong toAngangIronandSteelGroup
SaleofGoods/RenderingofServices
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
22,83
1.63
0.45%
30,00
No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Anste |
elGreenResourcesTechnologyCo.,
| Ltd. | Also |
belong toAngangIronandSteel
SaleofGoods/RenderingofServices
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
4,224.
0.08% 1,079 Yes
Accordingto theagreement
Yes
2-Dec-
2023-
Anshan IronandSteelGroupCo.,Ltd.
| Group |
| Also |
belong toAngangIronandSteel
SaleofGoods/RenderingofServices
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
13.98 0.00% 20 No
Accordingto theagreement
Yes
2-Dec-
2023-
BenxiSteelElectricalCo.,Ltd.
ParentCompany'sAssociate
ofGoods/RenderingofServic
| es |
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
0.01 0.00% 1 No
Accordingto theagreement
Yes
2-Dec-
2023-
BenxiSteelGroupCo.,Ltd.
ollingshareholderof theparentcomp
| any | Sale |
ofGoods/RenderingofServic
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
282.3
0.01% 1,000 No
Accordingto theagreement
Yes
2-Dec-
2023-
| es | ||
| Benxi |
BeiyingIron&Steel(Group)Co.,
Alsobelong toBengangGroup
SaleofGoods/RenderingofServices
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
35,86
9.72
0.70%
50,00
No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Benxi |
Iron&Steel(Group)MachineryManufacturingCo.,
Thesameparentcompany
SaleofGoods/RenderingofServices
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
1,880.
0.04% 1,350 Yes
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Benxi |
Iron&Steel(Group)Construction Co.,
Thesameparentcompany
SaleofGoods/RenderingofServices
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
228.1
0.00% 500 No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Benxi |
Iron&Steel(Group)Mining Co.,
Thesameparentcompany
SaleofGoods/RenderingofServices
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
5,724.
0.11%
83,70
No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Benxi |
Iron&Steel(Group)Equipment
Thesameparentcompany
SaleofGoods/RenderingofServices
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
1,560.
0.03% 3,000 No
Accordingto theagreement
Yes
2-Dec-
2023-
Co.,
| Ltd. |
| Benxi |
Iron&Steel(Group)IndustrialDevelopmentCo.,
Thesameparentcompany
SaleofGoods/RenderingofServices
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
14,61
4.28
0.29%
18,09
No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Benxi |
Iron&Steel(Group)Information &Automation Co.,
Alsobelong toAngangIronandSteelGroup
SaleofGoods/RenderingofServices
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
48.89 0.00% 50 No
Accordingto theagreement
Yes
2-Dec-
2023-
| Ltd. |
| Benxi |
Iron&Steel(Group)Co.,
parentcompany
| Ltd. | Sale |
ofGoods/RenderingofServic
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
10,40
2.02
0.20%
16,05
No
Accordingto theagreement
Yes
2-Dec-
2023-
| es | ||
| Delin |
LandportSupplyChainServicesCo.,
Alsobelong toAngangIronandSteelGroup
SaleofGoods/RenderingofServices
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
314,7
39.50
6.14%
306,6
Yes
Accordingto theagreement
Yes
2-Dec-
2023-
OtherSubsidiaries ofAnsteelGroup
| Ltd. | |
| Also |
belong toAngangIronandSteel
SaleofGoods/RenderingofServices
SaleofGoods
Market-orientedPrinciples
RelatedPartyAgreementPrice
4,837.
0.09% 5,801 No
Accordingto theagreement
Yes
2-Dec-
2023-
| Group | |
| Benxi |
Iron&Steel(Group)Mining Co.,
Thesameparentcompany
SaleofGoods/RenderingofServices
Provision ofSupportiveServices
Market-orientedPrinciples
RelatedPartyAgreementPrice
735.8
0.01%
10,00
No
Accordingto theagreement
Yes
2-Dec-
2023-
Total -- -- 2,980,-- 3,510,-- -- -- -- --
| 874.86 | 000 |
Details of any sales return ofa large amount
No applicable
related transactions to occur in thecurrent period during the reportingperiod by category (if any)
No applicable
| Actual performance of the estimated total amount of daily |
| Reason for any significant difference between the transaction price and the |
Market price for reference (ifapplicable)
No applicable
2. Related party transactions relevant to asset acquisition or sold
?Applicable ?Not applicable
Related
Party
Relatio
nship
Type ofRelated-PartyTransa
ction
Transa
ctionDetails
PricingPrincip
le
BookValue
ofTransfe
rredAssets(RMB10,000)
salValue
ofTransfe
rredAssets(RMB
| 10,000) |
TransactionPrice(RMB10,000)
Settlem
entMethod
Gain/Loss onTransa
ction(RMB10,000)
Disclos
ureDate
Disclos
ureRefere
nce
BenxiSteelGroup
Co.,Ltd.
ParentCompa
ny’sControl
lingShareh
older
EquityTransa
ction
Acquisition of100%equity
inNorther
nHengdaLogistics Co.,
Ltd.
transact
ionpricewasdetermi
nedbasedon theapprais
edvalue
of100%equityof thetargetcompany asof thevaluati
onreference date,mutuall
yagreedby both
| parties. |
16,966.
19,661.
19,661.
Cash 0
December 24,2024
Announcementon theAcquisition ofEquityinNorthernHengdaLogistics Co.,Ltd.andRelatedTransactions(Announcement No.2024-073)
None
Value (if applicable)Impact on Operating Results andFinancial Position
It helps reduce related-party transactions and enhance the Company's profitability.Performance Commitment FulfillmentDuring the Reporting Period (ifapplicable)
None
3. Related party transactions relevant to joint investments
□ Applicable √ Not applicable
There was no related transaction relevant to joint investments during the reporting period.
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
There were no related credits and debts during the reporting period.
5. Transactions with related financial companies
√ Applicable □ Not applicable
Deposit business
Related party
Relationship
Maximum
Transaction Price and Book/Appraisaldaily depositlimit (ten
thousand)
Deposit
| daily deposit limit (ten | interest rate |
range
Beginning
thousand)
Current period
Ending
| balance (10 | balance (10 |
thousand)
Total deposit
amount ofthe currentperiod (10thousand)
Totalwithdrawalamount ofthis period
(10thousand)
GroupFinance Co.,
| Ltd. |
Also belongto Ansteel
450,000
1.35%-
2.25%
40,628.8
11,119,016.6
11,036,925.5
122,719.88
Credit or other financial services
Related party Relationship Business type
Total amount（10
thousand）
Actual amount（10
thousand）
Also belong to Ansteel Other financial services 59,150.75 59,150.75
6. Transactions between the financial company controlled by the company and its related parties
□ Applicable √ Not applicable
There were no deposits, loans, credit or other financial businesses between the financial company controlled by thecompany and its related parties.
7. Other significant related transactions
□ Applicable √ Not applicable
There were no other significant related transactions during the reporting period.
XV. Significant Contracts and Their Performance
1. Trusteeship, Contracting, and Lease Arrangements
(1) Trusteeship
? Applicable ? Not ApplicableDuring the reporting period, the Company had no trusteeship arrangements.
(2) Contracting
? Applicable ? Not ApplicableDuring the reporting period, the Company had no contracting arrangements.
(3) Leasing
? Applicable ? Not ApplicableDetails of leasingThe Company as Lessor:
Lessee Name Type of Leased Assets
| Lease Income Recognized in Current Period (RMB) | Lease Income Recognized in Prior Period (RMB) | ||
| Benxi Iron and Steel (Group) Equipment Engineering Co., Ltd. | Factory buildings and ancillary equipment | 108,980.00 | 217,960.00 |
| Benxi Iron and Steel (Group) Machinery Manufacturing Co., Ltd. | Factory buildings and ancillary equipment | 670,802.00 | |
| Benxi Steel Group International Trade Co., Ltd. | Factory buildings and ancillary equipment | 1,957,007.77 |
The Company as Lessee
oflessor
| Name | Type of leased |
assets
Current period Previous period
for
| short-term |
lease
low-
| value assets |
Variab
leleasepayme
included in
the
| measurement |
oflease
es
Rent paid
Interestexpense on
leaseliabilities
assumed
Increa
sed
| liabiliti | access |
assets
| Rental fees for |
short-term
andlow-valueassets
| leases | Variable |
lease
not
| included |
in themeasurement of
leaseliabilities
Rent paid
Interestexpense on
| lease liabilities |
assumed
Increase
assets
| d access | |||
| Benxi Iron and Steel (Group) Co., Ltd | Land use right 7,669,068.17 square meters, land use right 42,920.00 square meters |
| 55,277,544.12 | 37,677,819.06 | 55,277,544.12 | 39,000,108.00 | ||||||||
| Benxi Iron and Steel (Group) Co., | 2300 hot rolling mill production line, related real estate |
| 16,098,161.04 | 6,968,900.84 | 16,098,161.05 | 7,740,688.68 |
| Ltd. | |
| Benxi Beiying Iron and Steel (Group) Co., Ltd. | 1780 hot rolling mill production line, related property |
| 14,351,637.72 | 5,367,055.84 | 14,351,637.72 | 5,961,443.40 | ||||||||
| Ben Steel Group Co., Ltd | Land use right is 728,282.30 square meters |
| 9,945,423.12 | 1,757,731.16 | 9,945,423.12 | 2,449,918.80 | ||||||||
| Ansteel Group Energy Saving Technology Service Co., Ltd. | machinery equipment |
| 7,418,960.00 | 6,474,538.06 | 255,128,489.65 |
Items with Profit/Loss Impact Exceeding 10% of the Company’s Total Profit for the Reporting Period? Applicable ? Not ApplicableDuring the reporting period, there were no lease arrangements that generated profit/loss exceeding 10% of the Company’s totalprofit.
2. Significant Guarantees
? Applicable ? Not ApplicableDuring the reporting period, there were no significant guarantees provided by the Company.
3. Entrusted Cash Asset Management
(1) Entrusted Wealth Management
? Applicable ? Not ApplicableDuring the reporting period, the Company did not engage in entrusted wealth management.
(2) Entrusted Loans
? Applicable ? Not ApplicableDuring the reporting period, the Company did not engage in entrusted loans.
4. Other Significant Contracts
? Applicable ? Not ApplicableDuring the reporting period, there were no other significant contracts.
XVI. Other Major Events? Applicable ? Not Applicable
On June 20, 2023, the company disclosed the "Major Asset Replacement and Related Transaction Plan" to carry out assetreplacement with Benxi Iron and Steel Company, intending to acquire 100% equity of Benxi Iron and Steel (Group)Mining Co., Ltd., and intending to dispose of all assets and liabilities of the listed company except for retained assets andliabilities. The difference between the assets to be acquired and the assets to be disposed of shall be made up by one partyto the other in cash. At present, the company is conducting further demonstration and communication and negotiation onthe transaction plan. After the relevant matters are determined, the company will convene the board of directors again fordeliberation.XVII. Major Events of Subsidiaries? Applicable ? Not ApplicableOn December 23, 2024, the Company held the 31st meeting of the Ninth Board of Directors and approved the Proposal on AcquiringEquity of North Hengda Logistics Co., Ltd., agreeing to acquire 100% equity of North Hengda Logistics Co., Ltd. held by BengangGroup Co., Ltd. in cash. Upon completion of the transaction, Hengda Logistics became a wholly-owned subsidiary of the Companyand was included in the consolidated financial statements. The industrial and commercial registration changes were completed onDecember 25, 2024. For details, refer to the Announcement on Acquiring Equity of North Hengda Logistics Co., Ltd. and Related-Party Transaction (Announcement No.: 2024-073) and the Announcement on Progress of Equity Acquisition and Completion ofIndustrial and Commercial Registration Changes (Announcement No.: 2024-076) published by the Company on designated informationdisclosure platforms.
VII. Status of Share Capital Changes and ShareholdersI. Share Capital Changes
1. Share capital changes
Unit: Share
Before the change Increase/decrease(+，-) After the ChangeQuantity
Percenta
geIssuing ofnew share
shares
Capitalization of
reserve
fund
Others Subtotal Quantity
PercentageI. Restricted Shares
| common | ||||||||
2. State-own Legal-person
Shareholding
3. Other domestic
shareholdings
Including: Domestic legalperson holding
Domesticperson holding
4. Foreign Shareholding
Including: Foreign legalperson holding
Foreign personholding
II. Non-restricted Shares4,108,219,302
100.00%
8,855
8,855
4,108,228,157
100.00%
1. Common shares in
RMB
3,708,219,302
90.26%
8,855
8,855
3,708,228,157
90.26%
2. Foreign shares in
domestic market
400,000,000
9.74%
400,000,000
9.74%
3. Foreign shares in
oversea market
4.Others
III. Total shares4,108,219,302
100.00%
8,855
8,855
4,108,228,157
4,108,219
| ,302 |
Reason of share capital changes
√Applicable □Not applicable
During the reporting period, 350 convertible bonds were converted into shares and the company's total
share capital increased by 8,855 shares.Approval of share capital changes
□ Applicable √ Not applicable
Status of registration process of transferred shares
□ Applicable √ Not applicable
Influences of share capital changes on financial indices such as basic earnings per share, diluted earningsper share, and net asset per share attributed to common shareholders
□ Applicable √ Not applicable
Other information the Company deems necessary to be disclosed or required by the authority
□ Applicable √ Not applicable
2. Changes of Restricted Shares
□Applicable √Not applicable
II. Securities Issuance and Listing
1. Status of Security Issuance (Excluding Preferred Shares) in the Reporting Period
□Applicable √Not applicable
2. Total Share and Shareholder Change and Asset and Liability Structure Change
□Applicable √Not applicable
3. Employee Shareholding Status
□Applicable √Not applicable
III. Shareholders and Actual Controller
1. Total Number of shareholders and shareholding
In Shares
Total number ofcommon
end of thereporting period
45,628
Total numberof commonshareholdersat the end ofthe month
47,914
| shareholders at the | Total number of |
preferred
Total number ofpreferredshareholderswhose votingrights were
before theannual reportdisclosuredate
(if any) (see Note 8)
restored at the endof the monthbefore the annualreport disclosuredate (if any) (seeNote 8)Shareholding of shareholders holding more than 5% or top 10 shareholders(Excluding shares lent through
| the reporting period | ||
| refinancing) | ||
Name of theshareholder
Nature ofshareholder
HoldingPercentage
Number of
period-end
| shares held at | Changes in |
reporting
period
Restrictedsharesheld
Un-restrictedshares held
or frozen shares
| Number of pledged | |
| Status | Number |
Benxi Steel & Iron(Group) Co., Ltd.
State-ownedlegal person
58.65%
2,409,628,094
0 0
2,409,628,094
Frozen
| 102,100,000 |
Bengang GroupCo., Ltd.
State-ownedlegal person
17.95%
737,371,532
0 0
737,371,532
| Not |
applicable
Guan Hui
Domesticnatural person
0.69%
28,213,600
-516,400 0
28,213,600
| Not |
applicable
Zhang Wenyou
Domesticnatural person
0.44%
18,162,365
-987,602 0
18,162,365
| Not |
applicable
Gao Tao
Domesticnatural person
0.38%
15,500,000
-8,250,000 0
15,500,000
| Not |
applicable
Lyu Ruijun
Domesticnatural person
0.29%
12,011,440
12,011,440 0
12,011,440
| Not |
applicable
China MerchantsSecurities (HK)Co., Ltd.
Foreign legalperson
0.29%
11,768,807
11,768,807 0
11,768,807
| Not |
applicable
Hong KongSecurities ClearingCompany Limited
Foreign legalperson
0.26%
10,881,390
-3,347,359 0
10,881,390
| Not |
applica
ble
Ma Yonghua
Domesticnatural person
0.24%
10,022,457
10,022,457 0
10,022,457
| Not |
applica
ble
Zhou Wei
Domesticnatural person
0.22%
8,995,300
-1,000 0
8,995,300
| Not |
applicable
| Strategy investors or general legal |
person becomes top 10
None
shareholders due to rights issued
Notes to relationship or ‘action inconcert’ among the top 10shareholders.
Benxi Iron and Steel (Group) Co., Ltd. has a
| (if any) (See Notes 3) | |
| related relationship with Benxi Iron and Steel Group Co., Ltd., and is a concerted action person stipulated in the "Administrative Measures for the Acquisition of Listed Companies". It is unknown to the Company whether there is any related |
connection or ‘Action in Concert’
Changing of Shareholding Status of Listed Companies existing among the above shareholders.Explanation of the above-mentionedshareholders' entrusted/entrusted votingrights and waiver of voting rights
The above shareholders are not involved in the entrustment, entrusted voting rights, or
abstention of voting rights.Special instructions for the existence ofspecial repurchase accounts among thetop 10 shareholders (if any) (see Note10)
NoneShareholding of top 10 unrestricted shareholders (Excluding shares lent through refinancing and shares locked by
senior executives)Name of the shareholder
Un-restricted shares held
as described by Rules of Information Disclosing Regardingat the end of the reporting
period
Category of sharesCategory of shares Quantity
| at the end of the reporting | |
| Benxi Steel & Iron (Group) Co., Ltd. |
2,409,628,094
| Common shares in RMB |
2,409,628,094
Bengang Group Co., Ltd.
737,371,532
| Common shares in RMB |
737,371,532
Guan Hui 28,213,600
Common shares in RMB28,213,600
Zhang Wenyou18,162,365
Common shares in RMB18,162,365
Gao Tao 15,500,000
Foreign shares in domestic exchange15,500,000
Lyu Ruijun12,011,440
Foreign shares in domestic exchange12,011,440
| China Merchants Securities (HK) Co., Ltd. |
11,768,807
Foreign shares in domestic exchange11,768,807
Hong Kong Securities Clearing CompanyLimited
10,881,390
Common shares in RMB10,881,390
Ma Yonghua10,022,457
Foreign shares in domestic exchange10,022,457
Zhou Wei 8,995,300
Common shares in RMB8,995,300
Notes to relationship or ‘action inconcert’ among the top 10 non-restrictedshareholders, and among the top 10 non-restricted shareholders and top 10shareholders
Benxi Iron and Steel (Group) Co., Ltd. has a related
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 10participating in securities margin trading(if any) (see Note 4)
Guan Hui holds 213,6
securities account. Zhang Wenyou holds 105,998
| shares of the Company's stock through |
an investor credit securities account, 18,056,367
an investor credit securities account.
| Zhou Wei holds 163,500 shares of the Company's |
through an investor credit securities account.
Shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10shareholders of unrestricted tradable shares participating in the refinancing business and lendingshares
□ Applicable √ Not Applicable
The top 10 shareholders and the top 10 shareholders of unrestricted tradable shares have changedcompared with the previous period due to lending/repayment of refinancing
□ Applicable √ Not Applicable
Whether top 10 common shareholders and top 10 un-restricted common shareholders have a buy-back agreement dealing in reporting period
□ Yes √ No
Top 10 common shareholders and top 10 un-restricted common shareholders had no buy-backagreement dealing in reporting period.
2. Information of the Company's controlling shareholder
Nature of Controlling Shareholder: Central State-owned HoldingsType of Controlling Shareholder: Legal personName of theControllingshareholder
Legalrepresentative /person in charge
Date ofincorporation
Organization
Code
Principal business activities
Benxi Steel &Iron (Group)Co., Ltd.
Li Naiming July 10,1996
91210500119726263U
stock through an investor general account and 8,831,800 shares of the Company's stock
Steel and iron smelting, steel rolling processing,metal material manufacturing, ferroalloy smelting,
heat production and
| supply, metal cutting processing services, general equipment manufacturing (excluding special equipment manufacturing), import and export of goods, office services, building materials sales, refractory materials sales, refractory materials production, |
inst
services), property management, productiv
| e scrap metal recycling, renewable resource recycling (except productive scrap metal), renewable resource processing, renewable resource sales, |
non-
leasing, asset management services for self-
| owned |
capital investmen
Equity detailsof otherdomestic andoverseas listedcompaniescontrolled orinvested by thecontrollingshareholderduring the
| publication (except for projects that must be approved according to law, business activities are carried out independently in accordance with the law with a business license) | ||
| reporting period |
None
Changes of controlling shareholders during the reporting period
□ Applicable √ Not applicable
The controlling shareholder of the company has not changed during the reporting period.
3. The actual controller and its persons acting in concert
Nature of actual controller: Central state-owned assets management agencyType of actual controller: Legal personName of the controlling shareholder
Legalrepresentative/ person in charge
Date ofincorporation
Organization Code
Principal businessactivities
Ansteel Group Co., LtdTan Chengxu July 28, 2010
91210000558190456G
titanium, stainlesssteel, special steelproduction andmanufacturing, non-ferrous metalproduction andmanufacturing, steelrolling processing,iron, vanadium,titanium, and othernon-ferrous metals,non-metallic mineralmining andcomprehensiveutilization, miningauxiliary industries,clean energy powergeneration, coal and
coal products sales,chemical productsand gases (excludinghazardous
materials productionand sales, industrialand miningengineering,metallurgicalengineeringconstruction,engineeringtechnology services,equipmentmanufacturing,Internet of Thingsinformation services,energy conservation,environmental
| protection technology |
services, newmaterial research anddevelopment,renewable resourcesdevelopment,mechanicalprocessing,technologydevelopment,transfer, and services,transportationservices, real estatedevelopment, urbanenergy supply,software andinformationtechnology services,intelligentmanufacturing andservices, domesticand internationaltrade, financial
services, medical andhealth care services,vocational skillstraining, economicinformationconsulting services,enterprisemanagement, hoteland catering services,operation of otherstate-owned assetsand investmentswithin the scopeauthorized by theState-owned AssetsSupervision andAdministrationCommission of theState Council; thefollowing are limitedto branch operations:
newspaperdistribution,publication printing,
| packaging decoration, |
and other printingproducts printing.(Projects that requireapproval by law mustobtain approval fromrelevant departmentsbefore engaging in
Equity details of other domestic and
| business activities.) | ||
| overseas listed companies controlled by |
the actual controller during the
During the reporting period, Ansteel Group Co., Ltd indirectly held 53.46%of the shares of Angang Steel Company Limited, directly and indirectly held
49.67% of the shares of Vanadium & Titanium Company Limited, and
| reporting period | indirectly held 36.97% of the shares of Linggang Co., Ltd. |
Change of actual controller during the reporting period
□ Applicable √ Not applicable
There is no change of actual controller during the reporting period.Block diagram of the ownership and control relations between the Company and the actualcontroller
Whether the actual controller is controlling the Company through trusteeship or other assetmanagement service
□ Applicable √ Not applicable
4. The total number of shares pledged by the company's controlling shareholder or largest
shareholder and its persons acting in concert accounts for 80% of the total number of shares heldby them
□ Applicable √ Not applicable
5. Shareholders holding More than 10% of the Shares
□ Applicable √ Not applicable
6. Status of Share Reduction Limitation of Controlling Shareholders, Actual Controller,
Restructuring Party and Other Commitment Subjects
□ Applicable √ Not applicable
IV. Specific implementation of share repurchases during the reporting periodProgress of share repurchase implementation
□ Applicable √Not applicable
Progress of the implementation of share repurchase through centralized bidding transactions
□ Applicable √ Not applicable
Liaoning SocialSecurity FundCouncil
Liaoning Provincial State-owned Assets Supervisionand AdministrationCommission
AnsteelGroupCo., Ltd.
Liaoning HuidaEnterpriseManagement Co., Ltd.
Fushun NewSteel Co., Ltd.
Liaoning DongfangAnrong InvestmentManagement Partnership(Limited Partnership)
10%
| 20.4% | 51% | 9% | 5% | 4.6% |
Bengang Group Co., Ltd.
Benxi Steel & Iron (Group) Co., Ltd.
Bengang Steel Plates Co., Ltd.
58.65%
17.95%
VIII. Status of Preferred Shares
□ Applicable √ Not applicable
The company had no preferred shares during the reporting period.
IX. Status of Bonds
√ Applicable □ Not applicable
I. Enterprise bonds
□ Applicable √ Not applicable
During the reporting period, the company did not have Enterprise bonds.
II. Corporate bonds
□ Applicable √ Not applicable
During the reporting period, the company did not have corporate bonds.III. Debt financing tools for non-financial companies
□ Applicable √ Not applicable
During the reporting period, the company did not have non-financial corporate debt financinginstruments.
IV. Convertible corporate bonds
√ Applicable □ Not applicable
1. Previous adjustments to the conversion price
1. The initial conversion price of "Bengang Convertible Bonds" is 5.03 yuan per share.
2. As the company implemented the 2020 equity distribution plan, the conversion price of "Bengang
Convertible Bonds" was adjusted to RMB 5.02 per share on July 19, 2021.
3. As the company implemented the 2021 mid-term equity distribution plan, the conversion price of
"Bengang Convertible Bonds" was adjusted to RMB 4.55 per share on October13, 2021.
4. As the company implemented the 2021 equity distribution plan, the conversion price of "Bengang
Convertible Bonds" was adjusted to RMB 3.95 per share on June 16, 2022.
2. Cumulative share conversion
√ Applicable □ Not applicable
Name ofC
Bond
Start dateand enddate ofconversion
Totalissuequantity(sheet)
Total issueamount(Yuan)
Cumulativeconversion amount(Yuan)
Cumulativeconversionquantity(
shares)
Proportion
| onvertible | of converted shares to the |
total issuequantity
Amountof sharesnot
(Yuan)
Proportion
of
| converted | unconverted |
amount tothe total
issueamountBengangConvertibleBond
4th Jan2021 – 28thJun 2026
68,000,0
6,800,000,0
00.00
1,169,014,9
00.00
232,856,6
6.01%
5,630,985,1
00.00
82.81%
3. The top ten holders of convertible bonds
No. Convertible bond holders
Nature of
convertible bond
holders
Number ofconvertiblebonds held
| convertible bond | at the end of the reporting |
period(sheets)
Amount ofconvertible bondsheld at the end of
the reportingperiod (yuan)
Percentage
ofconvertible
the end of
| the reporting |
period
Soochow Securities Co., Ltd.
State-ownedLegal Person
3,317,717
331,771,700.00
5.89%
China Merchants Bank Co., Ltd -Bosera CSI Convertible Bond &Exchangeable Bond Index ETF
Others2,456,530
245,653,000.00
4.36%
E Fund Peace of Mind Fixed IncomePension Product－China ConstructionBank Corporation
Others2,444,591
244,459,100.00
4.34%
Industrial and Commercial Bank ofChina Limited - Bosera Credit BondFund
Others1,900,011
190,001,100.00
3.37%
Pacific Securities Co.
Domestic nonState-ownedlegal person
1,689,676
168,967,600.00
3.00%
Deji Capital Management Company -DK MS FPI (Cayman) Ltd. - QFII
Foreign LegalPerson
1,486,793
148,679,300.00
2.64%
Funds Anji Pure bond half-yearly openbond-type initiated securities
| investment fund |
Others 1,334,982
133,498,200.00
2.37%
National Social Security Fund Portfolio
Others1,043,578
104,357,800.00
1.85%
China Asset Management's LongevityNo. 9 Fixed Income Pension Product－China Merchants Bank Co., Ltd.
Others968,118
96,811,800.00
1.72%
Industrial and Commercial Bank ofChina Limited – Huashang ConvertibleBond Securities Investment Fund
Others886,040
88,604,000.00
1.57%
4. Significant changes in the guarantor’s profitability, asset status, and credit status
□ Applicable √ Not applicable
5. At the end of the reporting period, the company's liabilities, changes in credit standing, and cash
arrangements for debt repayment in future yearsAs of the end of the reporting period, based on the company's major accounting data and financialindicators for the past two years, the company's convertible bond credit rating for this year has notchanged.V. The loss of the consolidated financial statements during the reporting period exceeds 10%of the net assets at the end of the previous year
√ Applicable □ Not applicable
Items Losses
Reasons for thelosses
The impact on the company'sproduction and operation and
debt repayment capacity
Parent company of BengangSteel Plates Co., Ltd.
Net profit in 2024 RMB -5,188,686,716.67
Operational loss
profit in 2024 was -5,188,686,716.67 yuan, whichwas 10% higher than the netassets in the auditedconsolidated balance sheet ofthe previous year, affectingthe increase in the auditedconsolidated net loss in thisperiod and the increase in the
| debt-to-asset ratio. |
VI. The situation of overdue interest-bearing debts excluding bonds at the end of the reportingperiod
□ Applicable √ Not applicable
VII. Any violation of rules and regulations during the reporting period
□ Applicable √ Not applicable
VIII. The company’s main accounting data and financial indicators for the past two years asof the end of the reporting periodUnit: 10 thousand yuan
Item 31 Dec 2024 31 Dec 2023
Changes over endingbalance of last yearCurrent ratio 0.52
0.70
-25.71%
Debt-to-asset ratio 72.72%
61.74%
10.98%
Quick ratio 0.18
0.27
-33.33%
Current period Previous period
Changes over previous
periodNet profit after deductingnon-recurring gains andlosses
-522,160.18
-206,205.58
-153.22%
EBITDA total debt ratio -7.76%
3.10%
-10.86%
Interest Coverage ratio -9.33
-2.37
-293.67%
Cash Interest Coverage ratio -1.74
9.11
-119.10%
EBITDA Interest Coverageratio
-5.74
1.20
-578.33%
Loan repayment rate 100.00%
100.00%
0.00%
Interest repayment rate 100.00%
100.00%
0.00%
X. Financial Report
1. Auditor’s report
Opinion of audit report Unqualified opinionDate of audit report 2th April 2025Name of CPA Firm BDO China Shu Lun Pan CPAs LLPAudit report number PCPAR [2025] No.ZG10828Name of CPA Wang Hongna, Fu Yangyi
Auditors’ Report
PCPAR [2025] No. ZG10828
To All Shareholders of Bengang Steel Plates Co., Ltd.:
Auditor’s Opinion
We have audited the accompanying financial statements of Bengang Steel Plates Co., Ltd.(hereinafter referred to as “the Company”) which comprise the consolidated statement offinancial position and statement of financial position as at 31 December 2024, theconsolidated statement of comprehensive income and statement of comprehensive income,the consolidated statement of changes in equity and statement of changes in equity, theconsolidated statement of cash flows and statement of cash flows for the year then ended,and notes to the financial statements.
In our opinion, the financial statements present fairly, in all material respects, theconsolidated financial position and financial position of the Company as at 31 December2024, and the consolidated results of operations and results of operations and theconsolidated cash flows and cash flows of the Company for the year then ended inaccordance with the requirements of Accounting Standards for Business Enterprises.
Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing for CertifiedPublic Accountants. Our responsibilities under those standards are further described in theAuditor’s Responsibilities for the Audit of the Financial Statements section of our report.We are independent of the Company in accordance with the China Code of Ethics forCertified Public Accountants, and we have fulfilled our other ethical responsibilities inaccordance with China Code of Ethics for Certified Public Accountants. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.
Key Audit Matters
The key audit matters are matters that we consider to be the most important for the auditof the current financial statements based on professional judgment. The response to thesematters is based on the overall audit of the financial statements and the formation of auditopinions. We do not express a separate opinion on these matters.
We have identified the following items as key audit matters that need to be disclosed in theaudit report.
| Key Audit Matters | Audit Procedure |
| 1. Revenue Recognition | |
Please refer to the Note (20)
accounting estimates” and Note (30)
under “5. Notes to consolidated financialstatements”.
statements is RMB 51,266.
| 36 million. Since revenue is a key performance |
indicator of the Company, the managementof the Company may have a significant
recognition. Therefore, we considerrevenue recognition as a key audit matter.
The main audit procedures we performedare as follows:
| risk of misstatement in revenue | (1) Understand and test the key internal controls related to revenue, and evaluate whether the relevant controls are appropriate and effectively implemented; |
(2) We performed analytical procedures on
revenue, including comparison of the grossprofit of the
abnormalities;
| (3) Obtain the sales details of the current year, select samples of revenue transactions recorded in the current year, check the supporting documents such as sales contracts, invoices, yard sheets, customs declarations, and evaluate |
whether the relevant re
policies;
(4) Select samples to check sales contracts,
identify the contract terms and conditionsrelated to the transfer of control of goods,and evaluate whether the timing of revenue
| recognition of the Company complies with |
the requirements of Accounting Standardsfor Business Enterprises;
reporting period;
| (6) Check the sales to related parties, |
review the fairness of the transaction prices
confirmation procedures with related partycustomers;
| (7) Check whether information related to revenue has been properly reported and disclosed in the financial statements. | |
| 2. Impairment of Inventory | |
Please refer to the Note （11）under “3.
accounting estimates” and Note (7
| ) |
under “5. Notes to consolidated financialstatements”.
As at December 31,2024
statement is RMB 7,638.56 million ,impairment of inventory is RMB 305.47million
| , the book value of inventory is |
RMB 7,333.08 million
impairment for inventory will exert a greatimpact on the financial statement.
| The net realizable value of finished goods |
The main audit procedures we performedare as follows:
(1) Evaluated the design and operation of
internal control related to the impairmentof inventory;(2)
quantity and status of inventory, especiallythe aged inventory;
(3) Obtain the calculation table
| of the |
impairment of inventory. Check whether it
accounting standards of the Company,
| check the changes in the inventory impairment provision made in previous years, etc., and analyze whether the inventory impairment provision is |
sufficient;
is determined by deducting the estimatedselling expenses and related taxes from theestimated selling price.
inventory.
| It involves significant |
management judgement in the estimationprocess.
As at December 31, 2024
value. Therefore, we identified it as a key
| audit matter. | of inventories and review the method of making provisions for inventory impairment, and test the integrity of the |
reports and data on which it is based.
Other information
The management of the Company is responsible for the other information. The otherinformation comprises information of the Company's annual report for the period of 2024but excludes the financial statements and our auditor's report.
Our opinion on the financial statements does not cover the other information and we donot and will not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read theother information identified above and, in doing so, consider whether the other informationis materially inconsistent with the financial statements or our knowledge obtained in theaudit if there appears to be a material misstatement.
Based on the work we have performed, if we determine that there is a materialmisstatement of other information, we should report that fact. In this regard, we havenothing to report.
Responsibilities of Management and Those Charged with Governance for the FinancialStatements
Management is responsible for the preparation and fair presentation of the financialstatements in accordance with requirements of Accounting Standards for BusinessEnterprises, and for such internal control as management determines is necessary to enablethe preparation of financial statements that are free from material misstatement, whetherdue to fraud or error.
In preparing the financial statements, management of the Company is responsible forassessing the Company's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations, or has norealistic alternative but to do so.
Those charged with governance are responsible for supervising the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statementsare free from material misstatement, whether due to fraud or error, and to issue an auditor’sreport that includes our opinion. Reasonable assurance is a high level of assurance but isnot a guarantee that an audit conducted in accordance with China Standards on Auditingfor Certified Public Accountants will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individually orin the aggregate, they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.
As part of an audit in accordance with accordance with Chinese Certified PublicAccountants Auditing Standards, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to thoserisks, and obtain audit evidence that is sufficient and appropriate to provide a basis for ouropinion. The risk of not detecting a material misstatement resulting from fraud is higherthan for one resulting from error, as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
(4) Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on Bengang Steel Plate’sability to continue as a going concern. If we conclude that a material uncertainty exists,we are required to draw attention in our auditor’s report to the related disclosures in thefinancial statements or, if such disclosures are inadequate, to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor’s report.However, future events or conditions may cause Bengang Steel Plates to cease to continueas a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of
entities or business activities within Bengang Steel Plates to express an opinion on thefinancial statements. We are responsible for guiding, supervising and executing the groupaudit and assume full responsibility for the audit opinion.
We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including anysignificant deficiencies in internal control that we identify during our audit.
We also provide a statement to those charged with governance on compliance with theethical requirements associated with independence and communicate with those chargedwith governance all relationships and other matters that may reasonably be considered to
affect our independence, and related precautions (if applicable).
From the matters communicated with those charged with governance, we determine thosematters that were of most significance in the audit of the financial statements of the currentperiod and are therefore the key audit matters. We describe these matters in our auditor'sreport unless law or regulation precludes public disclosure about the matter or when, inextremely rare circumstances, we determine that a matter should not be communicated inour report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.
BDO CHINA SHU LUN PAN CERTIFIED Certified Public Accountants of ChinaPUBLIC ACCOUNTANTS LLP (Engagement Partner)
Certified Public Accountants of China
Shanghai, the People’s Republic of China 2 April 2025
This auditor’s report and the accompanying notes to the financial statement are English translation of theChinese auditors’ report. In case of doubt as to the presentation of these documents, the Chinese version shallprevail.
2. Financial statements
BENGANG STEEL PLATES CO., LTD.CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2024(Expressed in Renminbi unless otherwise indicated)
| Assets | Notes 5 | Dec 31, 2024 | Dec 31, 2023 |
| Current assets | |||
| Cash at bank and on hand | (1) | 2,453,888,470.48 | 2,210,057,475.05 |
| Settlement provisions | |||
| Capital lent | |||
| Financial assets held for trading | |||
| Derivative financial assets | |||
| Notes receivable | (2) | 607,279,481.42 | 454,407,444.02 |
| Accounts receivable | (3) | 501,484,081.73 | 1,329,347,134.49 |
| Accounts receivable financing | (4) | 64,399,942.70 | 806,822,622.43 |
| Prepayments | (5) | 391,823,135.87 | 677,140,188.41 |
| Premium receivable | |||
| Reinsurance accounts receivable | |||
| Receivable deposit for reinsurance contract | |||
| Other receivables | (6) | 149,015,138.26 | 318,832,784.47 |
| Redemptory financial assets for sale | |||
| Inventories | (7) | 7,333,084,694.27 | 7,769,551,774.44 |
| Including: data assets | |||
| Contract assets | |||
| Assets held for sale | |||
| Non-current assets due within one year | |||
| Other current assets | (8) | 437,081,260.66 | 157,789,976.90 |
| Total current assets | 11,938,056,205.39 | 13,723,949,400.21 | |
| Non-current assets | |||
| Loan and advances issued | |||
| Debt Investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | (9) | 45,413,221.72 | 46,910,346.41 |
| Other equity instrument investments | (10) | 933,426,254.63 | 974,463,039.83 |
| Other non-current financial assets | |||
| Investment property | |||
| Fixed assets | (11) | 26,426,320,453.57 | 25,174,210,887.76 |
| Construction in progress | (12) | 3,934,442,501.50 | 4,308,404,147.31 |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | (13) | 1,685,925,710.14 | 1,319,616,179.37 |
| Intangible assets | (14) | 394,780,068.68 | 363,818,317.13 |
| Including: data assets | |||
| Development expenditure | |||
| Including: data assets | |||
| Goodwill | |||
| Long-term deferred expenses | |||
| Deferred tax assets | (15) | 371,234,449.79 | 467,040,631.42 |
| Other non-current assets | (16) | 86,297,275.16 | 139,318,979.61 |
| Total non-current assets | 33,877,839,935.19 | 32,793,782,528.84 | |
| Total assets | 45,815,896,140.58 | 46,517,731,929.05 |
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
BENGANG STEEL PLATES CO., LTD.CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued)
As at 31 December 2024(Expressed in Renminbi unless otherwise indicated)
| Liabilities and equities | Notes 5 | Dec 31,2024 | Dec 31, 2023 |
| Current Liabilities | |||
| Short-term loans | (18) | 371,055,490.50 | 328,000,000.00 |
| Loan from central bank | |||
| Loan from other banks | |||
| Financial liability held for trading | |||
| Derivative financial liabilities | |||
| Notes payable | (19) | 12,982,703,669.86 | 10,370,940,819.87 |
| Accounts payable | (20) | 2,761,759,439.36 | 2,809,289,562.55 |
| Advance from customers | (21) | 59,327.21 | 143,119.29 |
| Contract liabilities | (22) | 2,908,598,425.73 | 3,318,451,501.35 |
| Financial assets sold for repurchase | |||
| Deposits from customers and interbank | |||
| Receipt from vicariously traded securities | |||
| Receipt from vicariously underwriting securities | |||
| Employee benefits payable | (23) | 1,773,068.35 | 1,326,522.66 |
| Current tax liabilities | (24) | 54,070,097.83 | 57,639,085.30 |
| Other payables | (25) | 2,354,694,200.01 | 1,727,079,607.48 |
| Handling charges and commission payable | |||
| Reinsurance accounts payable | |||
| Liabilities held for sale | |||
| Non-current liabilities due within one year | (26) | 1,030,502,916.66 | 685,881,691.76 |
| Other current liabilities | (27) | 328,981,058.74 | 399,791,720.50 |
| Total current liabilities | 22,794,197,694.25 | 19,698,543,630.76 | |
| Non-current liabilities | |||
| Provision for insurance contract | |||
| Long-term loans | (28) | 2,891,941,462.40 | 1,723,726,700.80 |
| Bonds payable | (29) | 5,569,899,459.53 | 5,451,381,676.38 |
| Including: Preferred stock | |||
| Perpetual bond | |||
| Lease liabilities | (30) | 1,633,911,586.51 | 1,342,427,252.45 |
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Estimated liabilities | |||
| Deferred income | (31) | 173,919,087.47 | 174,142,383.18 |
| Deferred tax liabilities | (15) | 252,893,530.26 | 329,914,385.19 |
| Other non-current liabilities | |||
| Total non-current liabilities | 10,522,565,126.17 | 9,021,592,398.00 | |
| Total liabilities | 33,316,762,820.42 | 28,720,136,028.76 | |
| Shareholders' equity: | |||
| Share capital | (32) | 4,108,228,157.00 | 4,108,219,302.00 |
| Other equity instruments | (33) | 947,850,195.03 | 947,858,134.16 |
| Including: Preferred stock | |||
| Perpetual bond | |||
| Capital reserves | (34) | 13,225,632,166.95 | 13,422,225,870.92 |
| Less: treasury shares | |||
| Other comprehensive income | (35) | -93,407,196.62 | -50,371,341.88 |
| Special reserves | (36) | 809,649.65 | 163,055.04 |
| Surplus reserves | (37) | 1,195,116,522.37 | 1,195,116,522.37 |
| General risk reserve | |||
| Undistributed profits | (38) | -7,497,011,632.90 | -2,414,685,928.92 |
| Total equity attributable to equity holders of the parent company | 11,887,217,861.48 | 17,208,525,613.69 | |
| Non-controlling interests | 611,915,458.68 | 589,070,286.60 | |
| Total shareholder's equity | 12,499,133,320.16 | 17,797,595,900.29 | |
| Total of liabilities and owners’ equity | 45,815,896,140.58 | 46,517,731,929.05 |
The notes to the financial statements attached form part of these financial statements.
Legal Representative： Chief Financial Officer: Chief Accountant:
BENGANG STEEL PLATES CO., LTD.STATEMENT OF FINANCIAL POSITIONAs at 31 December 2024(Expressed in Renminbi unless otherwise indicated)
| Assets | Notes 15 | Dec 31, 2024 | Dec 31, 2023 |
| Current assets | |||
| Cash at bank and on hand | 1,928,597,252.93 | 2,084,382,077.60 | |
| Financial assets held for trading | |||
| Derivative financial assets | |||
| Notes receivable | 879,167,997.23 | 613,514,613.02 | |
| Accounts receivable | (1) | 899,413,301.62 | 1,243,326,802.56 |
| Accounts receivable financing | 67,033,501.52 | 693,239,068.68 | |
| Prepayments | 552,668,067.77 | 664,669,952.97 | |
| Other receivables | (2) | 399,809,663.60 | 604,535,173.18 |
| Inventories | 6,510,049,399.94 | 6,726,641,809.04 | |
| Including: data assets | |||
| Contract assets | |||
| Assets held for sale | |||
| Non-current assets due within one year | |||
| Other current assets | 401,232,007.64 | 82,661,697.57 | |
| Total current assets | 11,637,971,192.25 | 12,712,971,194.62 | |
| Non-current assets | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | (3) | 2,437,356,681.15 | 2,269,191,936.65 |
| Other equity instrument investments | 933,426,254.63 | 974,463,039.83 | |
| Other non-current financial assets | |||
| Investment property | |||
| Fixed assets | 25,361,023,150.98 | 24,052,882,215.31 | |
| Construction in progress | 3,813,480,844.57 | 4,275,801,115.73 | |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | 1,685,925,710.14 | 1,319,616,179.37 | |
| Intangible assets | 206,105,870.50 | 170,176,158.95 | |
| Including: data assets | |||
| Development expenditure | |||
| Including: data assets | |||
| Goodwill | |||
| Long-term deferred expenses | |||
| Deferred tax assets | 370,213,799.88 | 465,645,459.77 | |
| Other non-current assets | 85,556,957.68 | 131,159,433.56 | |
| Total non-current assets | 34,893,089,269.53 | 33,658,935,539.17 | |
| Total assets | 46,531,060,461.78 | 46,371,906,733.79 |
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
BENGANG STEEL PLATES CO., LTD.STATEMENT OF FINANCIAL POSITION (Continued)
As at 31 December 2024(Expressed in Renminbi unless otherwise indicated)
| Liabilities and shareholders' equities | Notes 15 | Dec 31, 2024 | Dec 31, 2023 |
| Current liabilities | |||
| Short-term loans | 371,055,490.50 | 328,000,000.00 | |
| Financial liability held for trading | |||
| Derivative financial liabilities | |||
| Notes payable | 11,915,812,506.01 | 10,361,392,779.12 | |
| Accounts payable | 2,881,087,998.48 | 3,190,842,780.56 | |
| Prepayments | |||
| Contract liabilities | 6,637,545,634.05 | 4,903,008,138.37 | |
| Employee benefits payable | 354,432.32 | ||
| Current tax liabilities | 28,685,832.43 | 30,105,183.40 | |
| Other payables | 2,206,387,975.74 | 1,656,804,114.53 | |
| Liabilities held for sale | |||
| Non-current liabilities due within one year | 1,030,502,916.66 | 685,881,691.76 | |
| Other current liabilities | 61,868,166.75 | 79,447,326.71 | |
| Total current liabilities | 25,133,300,952.94 | 21,235,482,014.45 | |
| Non-current liabilities | |||
| Long term loans | 2,891,941,462.40 | 1,723,726,700.80 | |
| Bonds payable | 5,569,899,459.53 | 5,451,381,676.38 | |
| Including: Preferred stock | |||
| Perpetual bond | |||
| Lease liabilities | 1,633,911,586.51 | 1,342,427,252.45 | |
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Estimated liabilities | |||
| Deferred income | 154,871,615.47 | 136,084,955.18 | |
| Deferred tax liabilities | 252,893,530.26 | 329,914,385.19 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 10,503,517,654.17 | 8,983,534,970.00 | |
| Total liabilities | 35,636,818,607.11 | 30,219,016,984.45 | |
| Shareholder’s equity: | |||
| Share capital | 4,108,228,157.00 | 4,108,219,302.00 | |
| Other equity instruments | 947,850,195.03 | 947,858,134.16 | |
| Including: Preferred stock | |||
| Perpetual bond | |||
| Capital reserves | 12,825,142,354.02 | 12,852,074,188.80 | |
| Less: Treasury shares | |||
| Other comprehensive income | -93,407,196.62 | -50,371,341.88 | |
| Special reserves | 9,276.81 | 3,681.16 | |
| Surplus reserves | 1,195,116,522.37 | 1,195,116,522.37 | |
| Undistributed Profits | -8,088,697,453.94 | -2,900,010,737.27 | |
| Total shareholder's equity | 10,894,241,854.67 | 16,152,889,749.34 | |
| Total liabilities and shareholder’s equity | 46,531,060,461.78 | 46,371,906,733.79 |
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
BENGANG STEEL PLATES CO., LTD.CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2024(Expressed in Renminbi unless otherwise indicated)
| Items | Notes 5 | Current period | Previous period |
| 1. Total operating income | 51,266,361,501.22 | 57,957,301,717.02 | |
| Including: Operating income | (39) | 51,266,361,501.22 | 57,957,301,717.02 |
| Interest income | |||
| Premium earned | |||
| Income from handling charges and commission | |||
| 2. Total operating cost | 56,068,974,028.50 | 59,824,687,870.58 | |
| Including: Operating cost | (39) | 54,693,756,805.43 | 58,450,348,769.43 |
| Interest expense | |||
| Expenditure for handling charges and commission | |||
| Surrender value | |||
| Net expenditure for compensation | |||
| Net provision for insurance contract appropriated | |||
| Bonus payment for policy | |||
| Reinsurance premium | |||
| Tax and surcharges | (40) | 203,043,367.36 | 215,721,980.86 |
| Selling and distribution expenses | (41) | 142,638,617.77 | 149,659,100.28 |
| General and administrative expenses | (42) | 702,788,411.83 | 619,677,417.05 |
| Research and development expenses | (43) | 86,415,509.29 | 81,247,560.73 |
| Financial expenses | (44) | 240,331,316.82 | 308,033,042.23 |
| Including: Interest expense | 384,713,981.73 | 415,219,929.72 | |
| Interest income | 43,019,766.05 | 56,283,070.97 | |
| Add: Other income | (45) | 200,140,947.91 | 100,870,396.00 |
| Income on investment |
（
）
| (46) | -42,967,621.92 | -2,805,789.13 | |
| Including: Income from associates and joint ventures | -1,497,124.69 | -1,085,968.20 | |
| Income from derecognition of financial assets measured at amortized cost | -60,611.63 | ||
| Exchange gains |
（
）
| Net exposure hedge income |
（
）
| Gains from change of fair value |
（
）
| Credit impairment loss |
（
）
| (47) | 50,143,005.20 | 10,021,338.62 | |
| Asset impairment loss |
（
）
| (48) | -278,486,334.42 | -35,339,403.25 | |
| Assets disposal gains |
（
）
| (49) | 13,020,778.49 | 298,940,955.41 | |
| 3. Operational profit |
（
）
| -4,860,761,752.02 | -1,495,698,655.91 | ||
| Add: Non-operating income | (50) | 45,789,122.58 | 43,408,651.98 |
| Less: Non-operating expenses | (51) | 54,707,998.74 | 95,099,082.07 |
| 4. Total profit (“-” for loss) | -4,869,680,628.18 | -1,547,389,086.00 | |
| Less: Income tax expenses | (52) | 90,436,789.08 | 100,979,291.81 |
| 5. Net profit |
（
）
| -4,960,117,417.26 | -1,648,368,377.81 | ||
| 1.Classification by continuing operating | |||
| 1.Net profit from continuing operation |
（
）
| -4,960,117,417.26 | -1,648,368,377.81 | ||
| 2.Net profit from discontinued operation |
（
）
| 2.Classification by ownership | |||
| 1. Net profit attributable to the owners of parent company |
（
）
| -5,037,271,398.28 | -1,720,871,697.00 | ||
| 2. Net profit attributable to non-controlling shareholders |
（
）
| 77,153,981.02 | 72,503,319.19 | ||
| 6.Other comprehensive income | -43,035,854.74 | -34,466,581.86 | |
| Other comprehensive income attributable to owners of the parent company after tax | -43,035,854.74 | -34,466,581.86 | |
| 1.Other comprehensive income items that will not be reclassified into gains/losses | -43,035,854.74 | -34,466,581.86 | |
| 1) Re-measurement of defined benefit plans of changes in net debt or net assets | |||
| 2) Other comprehensive income under the equity method cannot be reclassified into |
profit or loss
| 3) Changes in fair value of investments in other equity instruments | -43,035,854.74 | -34,466,581.86 | |
| 4) Changes in fair value of company's credit risk | |||
| 2.Other comprehensive income that will be reclassified into profit or loss. | |||
| 1) Other comprehensive income under the equity method which can be reclassified |
into profit or loss
| 2) Changes in fair value of other debt investments | |||
| 3) Amount of financial assets reclassified into other comprehensive income | |||
| 4) Credit impairment provision of other debt investments | |||
| 5) Cash flow hedges reserve | |||
| 6) Translation differences in foreign currency financial statements | |||
| 7) Others | |||
| Other comprehensive income attributable to non-controlling shareholders’ equity after |
tax
| 7. Total comprehensive income | -5,003,153,272.00 | -1,682,834,959.67 | |
| Total comprehensive income attributable to the owner of the parent company | -5,080,307,253.02 | -1,755,338,278.86 | |
| Total comprehensive income attributable to non-controlling shareholders | 77,153,981.02 | 72,503,319.19 | |
| 8. Earnings per share | |||
| 1 |
）
| Basic earnings per share | -1.226 | -0.419 | |
| 2 |
）
| Diluted earnings per share | -1.226 | -0.419 |
For the business combination under common control that occurred in this period, the net profit realized by thecombined party before the combination was RMB 16,120,746.07, and the net profit realized by the combined partyin the previous period was RMB 21,702,466.92. The notes to the financial statements attached form part of thesefinancial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
BENGANG STEEL PLATES CO., LTD.STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2024(Expressed in Renminbi unless otherwise indicated)
| Items | Notes 15 | Current period | Previous period |
| 1. Total operating income | (4) | 51,996,293,457.84 | 58,186,982,131.76 |
| Less: Operating cost | (4) | 55,850,177,739.34 | 59,293,494,660.13 |
| Tax and surcharges | 155,742,776.69 | 160,404,863.00 | |
| Selling and distribution expenses | 175,678,966.90 | 143,971,980.36 | |
| General and administrative expenses | 666,227,276.41 | 577,042,517.96 | |
| Research and development expenses | 86,415,509.29 | 81,247,560.73 | |
| Financial expenses | 260,257,651.32 | 320,034,306.92 | |
| Including: Interest expense | 384,713,981.73 | 413,822,456.17 | |
| Interest income | 36,704,884.79 | 40,683,621.30 | |
| Add: Other income | 129,520,303.41 | 78,279,172.38 | |
| Income on investment |
（
）
| (5) | 120,893,779.91 | 461,590,550.66 | |
| Including: Income from associates and joint ventures | -1,497,124.69 | -1,085,968.20 |
Income from derecognition of financial assets
-60,611.63
| measured at amortized cost |
| Net exposure hedge income |
（
）
| Gains from change of fair value |
（
）
| Credit impairment loss |
（
）
| 30,265,261.74 | 12,829,866.46 | ||
| Assets impairment loss |
（
）
| -278,486,334.42 | -35,339,403.25 | ||
| Assets disposal gains |
（
）
| 13,017,822.58 | 298,940,955.41 | ||
| 2. Operational profit |
（
）
| -5,182,995,628.89 | -1,572,912,615.68 | ||
| Add: Non-operating income | 45,130,689.39 | 42,653,931.69 | |
| Less: Non-operating expenses | 42,889,041.92 | 94,106,015.35 | |
| 3. Total profit (“-” for loss) | -5,180,753,981.42 | -1,624,364,699.34 | |
| Less: Income tax expenses | 7,932,735.25 | -20,687,646.74 | |
| 4. Net profit |
（
）
| -5,188,686,716.67 | -1,603,677,052.60 | ||
| 1.Net profit from continuing operation (“-” for loss) | -5,188,686,716.67 | -1,603,677,052.60 | |
| 2.Net profit from discontinued operation (“-” for loss) | |||
| 5.Other comprehensive income | -43,035,854.74 | -34,466,581.86 |
1.Other comprehensive income items that will not be reclassified
-43,035,854.74 -34,466,581.86
| into gains/losses | |||
| 1) Re-measurement of defined benefit plans of changes |
2) Other comprehensive income under the equity method cannot
3) Changes in fair value of investments in other equity
| be reclassified into profit or loss |
| instruments |
-43,035,854.74 -34,466,581.86
| 4) Changes in fair value of company's credit risk |
2.Other comprehensive income that will be reclassified into profit or
1) Other comprehensive income under the equity method investee
| loss. |
| can be reclassified into profit or loss |
| 2) Changes in fair value of other debt investments |
3) Amount of financial assets reclassified into other
| comprehensive income | |||
| 4) Credit impairment provision of other debt investments | |||
| 5) Cash flow hedges reserve | |||
| 6) Translation differences in foreign currency financial statements | |||
| 7) Others | |||
| 6. Total comprehensive income | -5,231,722,571.41 | -1,638,143,634.46 | |
| 7. Earnings per share | |||
| 1 |
）
| Basic earnings per share | |||
| 2 |
）
| Diluted earnings per share |
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
BENGANG STEEL PLATES CO., LTD.CONSOLIDATED STATEMENT OF CASH FLOWS
Forthe year ended 31 December 2024
(Expressed in Renminbi unless otherwise indicated)
| Items | Notes 5 | Current period | Previous period |
| 1.Cash flow from operating activities | |||
| Cash received from sale of goods or rendering of services | 55,987,587,183.40 | 55,063,430,323.73 | |
| Net increase of customers' deposit and interbank deposit | |||
| Net increase of loan from central bank | |||
| Net increase of loans from other financial institutions | |||
| Cash received for premium of original insurance contract | |||
| Net cash received for reinsurance business | |||
| Net increase of deposit and investment of the insured | |||
| Cash from receiving interest, handling charge and commission | |||
| Net increase of loans from borrowing funds | |||
| Net increase of fund for repurchase business | |||
| Net cash received from traded securities | |||
| Tax rebate received | 124,001,236.84 | 211,151,790.47 | |
| Other cash received relating to operating activities | (53) | 243,342,089.30 | 303,455,869.80 |
| Subtotal of cash inflows from operating activities | 56,354,930,509.54 | 55,578,037,984.00 | |
| Cash paid for goods and services | 52,271,670,593.20 | 47,738,828,807.44 | |
| Net increase of customer's loan and advances | |||
| Net increase of deposit in central bank and interbank deposit | |||
| Cash for payment of compensation for original insurance contract | |||
| Net increase in capital lent | |||
| Cash for payment of interest, handling charge and commission | |||
| Cash for payment of policy bonus | |||
| Cash paid to and on behalf of employees | 2,136,471,168.09 | 2,518,509,902.02 | |
| Cash paid for all types of taxes | 440,396,205.59 | 541,296,146.69 | |
| Other cash paid relating to operating activities | (53) | 406,104,548.41 | 433,169,246.62 |
| Subtotal of cash outflows from operating activities | 55,254,642,515.29 | 51,231,804,102.77 | |
| Net cash flows from operating activities | 1,100,287,994.25 | 4,346,233,881.23 | |
| 2. Cash flows from investing activities | |||
| Cash received from disposal of investments | 1,843,800.00 | ||
| Cash received from return on investments | 896,200.00 |
Net cash received from disposal of fixed assets, intangible assets and other long-
137,069,554.37 85,057,599.66
| term assets | |||
| Net cash received from disposal of subsidiary and other operating units | |||
| Other cash paid relating to investing activities | |||
| Subtotal of cash inflows from investing activities | 137,069,554.37 | 87,797,599.66 |
Cash paid for acquisition of fixed assets, intangible assets and other long-term
975,204,696.55 994,821,507.90
| assets | |||
| Cash paid for acquisition of investments | |||
| Net increase of mortgage loan | |||
| Net cash received from subsidiary and other operating unit | |||
| Other cash paid relating to investing activities | |||
| Subtotal of cash outflows from investing activities | 975,204,696.55 | 994,821,507.90 | |
| Net cash flows from investing activities | -838,135,142.18 | -907,023,908.24 | |
| 3. Cash flows from financing activities | |||
| Proceeds from investment | |||
| Including: Proceeds from investment of non-controlling shareholders of subsidiary | |||
| Proceeds from borrowings | 3,765,000,000.00 | 1,570,000,000.00 | |
| Other proceeds relating to financing activities | (53) | 3,808,123,889.76 | 1,208,395,091.10 |
| Subtotal of cash inflows from financing activities | 7,573,123,889.76 | 2,778,395,091.10 | |
| Cash repayments of borrowings | 2,283,590,268.00 | 3,947,582,606.32 | |
| Cash payments for distribution of dividends, profit or interest expenses | 274,024,906.84 | 279,847,394.73 |
Including: Cash paid to non-controlling shareholders as dividend and profit by
68,041,170.80
| subsidiaries | |||
| Other cash payments relating to financing activities | (53) | 4,940,069,284.22 | 2,120,624,742.04 |
| Subtotal of cash outflows from financing activities | 7,497,684,459.06 | 6,348,054,743.09 | |
| Net cash flows from financing activities | 75,439,430.70 | -3,569,659,651.99 | |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | 52,927,527.76 | 33,471,460.59 | |
| 5. Net increase in cash and cash equivalents | (54) | 390,519,810.53 | -96,978,218.41 |
| Add: Cash and cash equivalents at the beginning of the period | (54) | 1,199,685,408.38 | 1,296,663,626.79 |
| 6. Cash and cash equivalents at the ending of the period | (54) | 1,590,205,218.91 | 1,199,685,408.38 |
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
BENGANG STEEL PLATES CO., LTD.STATEMENT OF CASH FLOWS
For the year ended 31 December 2024
(Expressed in Renminbi unless otherwise indicated)
| Items | Notes 15 | Current period | Previous period |
| 1. Cash flow from operating activities | |||
| Cash received from sale of goods or rendering of services | 55,337,530,940.66 | 54,729,135,209.16 | |
| Tax rebate received | 117,007,166.59 | 182,654,395.44 | |
| Other cash received relating to operating activities | 214,590,835.88 | 313,226,321.84 | |
| Subtotal of cash inflows from operating activities | 55,669,128,943.13 | 55,225,015,926.44 | |
| Cash paid for goods and services | 52,556,437,895.34 | 47,458,464,490.84 | |
| Cash paid to and on behalf of employees | 1,974,094,315.49 | 2,350,688,837.49 | |
| Cash paid for all types of taxes | 280,573,222.50 | 227,899,745.84 | |
| Other cash paid relating to operating activities | 365,386,433.69 | 383,220,547.63 | |
| Subtotal of cash outflows from operating activities | 55,176,491,867.02 | 50,420,273,621.80 | |
| Net cash flows from operating activities | 492,637,076.11 | 4,804,742,304.64 | |
| 2. Cash flows from investing activities | |||
| Cash received from disposal of investments | |||
| Cash received from return on investments | 199,000,000.00 | 204,123,512.41 |
Net cash received from disposal of fixed assets, intangible
137,064,700.00 85,053,599.66Net cash received from disposal of subsidiary and other
| assets and other long-term assets |
| operating units |
| Other cash received relating to investing activities | |||
| Subtotal of cash inflows from investing activities | 336,064,700.00 | 289,177,112.07 |
Cash paid for acquisition of fixed assets, intangible assets and
966,576,178.20 989,247,449.99
| other long-term assets | |||
| Cash paid for acquisition of investments |
Net cash paid for acquisition of subsidiary and other
| operating unit | |||
| Other cash paid relating to investing activities | |||
| Subtotal of cash outflows paid for investing activities | 966,576,178.20 | 989,247,449.99 | |
| Net cash flows from investing activities | -630,511,478.20 | -700,070,337.92 | |
| 3. Cash flows from financing activities | |||
| Proceeds from investment | |||
| Cash received from borrowings | 3,765,000,000.00 | 1,570,000,000.00 | |
| Other cash received relating to financing activities | 3,808,123,889.76 | 1,128,377,111.10 | |
| Subtotal of cash inflows from financing activities | 7,573,123,889.76 | 2,698,377,111.10 | |
| Cash repayments of borrowings | 2,283,590,268.00 | 3,947,582,606.32 | |
| Cash payments for distribution of dividends, profit or interest | 274,024,906.84 | 211,806,223.93 | |
| Other cash payments relating to financing activities | 4,940,069,284.22 | 2,022,320,452.46 | |
| Subtotal of cash outflows from financing activities | 7,497,684,459.06 | 6,181,709,282.71 | |
| Net cash flows from financing activities | 75,439,430.70 | -3,483,332,171.61 |
4. Effect of foreign exchange rate changes on cash and
52,846,084.97 32,520,496.22
| cash equivalents | |||
| 5. Net increase in cash and cash equivalents | -9,588,886.42 | 653,860,291.33 | |
| Add: Cash and cash equivalents at the beginning of the period | 1,074,502,887.78 | 420,642,596.45 | |
| 6. Ending balance of cash and cash equivalents | 1,064,914,001.36 | 1,074,502,887.78 |
The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:
BENGANG STEEL PLATES CO., LTD.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Forthe year ended 31 December 2024
(Expressed in Renminbi unless otherwise indicated)Items
| Current period | ||
| Owner's equity attributable to parent company | ||
Non-controlling
interest
Total of owner'sequityShare capital
Capital reserves
| Other equity instruments | Less: | |
Treasuryshares
comprehensive
income
Special reserves Surplus reserves
| Other | General |
riskreserve
Undistributed profit
Subtotal
Preference shares
| Preference shares | Perpetual bond |
Others
| 1. Ending balance of last year | 4,108,219,302.00 | 947,858,134.16 | 13,422,225,870.92 | -50,371,341.88 | 163,055.04 | 1,195,116,522.37 | -2,414,685,928.92 | 17,208,525,613.69 | 589,070,286.60 | 17,797,595,900.29 | ||||
| Add: Change of accounting policies | ||||||||||||||
| Correction of errors for last period | ||||||||||||||
| Business consolidation under common control |
| Others | ||||||||||||||
| 2. Beginning balance of current year | 4,108,219,302.00 | 947,858,134.16 | 13,422,225,870.92 | -50,371,341.88 | 163,055.04 | 1,195,116,522.37 | -2,414,685,928.92 | 17,208,525,613.69 | 589,070,286.60 | 17,797,595,900.29 | ||||
| 3. Changes in current year (“-” for decrease) |
8,855.00 -7,939.13 -196,593,703.97 -43,035,854.74 646,594.61 -5,082,325,703.98 -5,321,307,752.21 22,845,172.08 -5,298,462,580.13
| 1) Total comprehensive income | -43,035,854.74 | -5,037,271,398.28 | -5,080,307,253.02 | 77,153,981.02 | -5,003,153,272.00 | |||||||||
| 2) Capital increase and decrease by |
shareholders
8,855.00 -7,939.13 -196,593,703.97 -196,592,788.10 -196,592,788.10
shareholders
| (1) Common share invested by |
| (2) Capital input by the holder of other |
equity instruments
8,855.00 -7,939.13 25,840.89 26,756.76 26,756.76
| (3) Share-based payment attributable to owners' equity | ||||||||||||||
| (4) Others | -196,619,544.86 | -196,619,544.86 | -196,619,544.86 | |||||||||||
| 3) Profit distribution | -45,054,305.70 | -45,054,305.70 | -54,632,794.65 | -99,687,100.35 | ||||||||||
| (1) Appropriation to surplus reserves | ||||||||||||||
| (2) Appropriation to general risk reserve | ||||||||||||||
| (3) Profit distribution to shareholders | -45,054,305.70 | -45,054,305.70 | -54,632,794.65 | -99,687,100.35 | ||||||||||
| (4) Others | ||||||||||||||
| 4) Transfers within shareholders' equity | ||||||||||||||
| (1) Capital reserves transferred into paid-in capital (or stock) |
| (2) Surplus reserves transferred into paid-in capital (or stock) | ||||||||||||||
| (3) Surplus reserves to recover loss | ||||||||||||||
| (4) Net changes of defined contribution plans transferred into Retained Earnings |
| (5) Other comprehensive income transferred into Retained Earnings | ||||||||||||||
| (6) Others | ||||||||||||||
| 5) Special reserves | 646,594.61 | 646,594.61 | 323,985.71 | 970,580.32 | ||||||||||
| (1) Provision of special reserves | 72,180,947.90 | 72,180,947.90 | 5,182,353.19 | 77,363,301.09 | ||||||||||
| (2) Use of special reserves | 71,534,353.29 | 71,534,353.29 | 4,858,367.48 | 76,392,720.77 | ||||||||||
| 6) Others | ||||||||||||||
| 4. Ending balance of current year | 4,108,228,157.00 | 947,850,195.03 | 13,225,632,166.95 | -93,407,196.62 | 809,649.65 | 1,195,116,522.37 | -7,497,011,632.90 | 11,887,217,861.48 | 611,915,458.68 | 12,499,133,320.16 |
The notes to the financial statements attached form part of these financial statementsLegal Representative: Chief Financial Officer: Chief Accountant:
BENGANG STEEL PLATES CO., LTD.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
Forthe year ended 31 December 2024(Expressed in Renminbi unless otherwise indicated)Items
| Previous period | ||
| Owner's equity attributable to parent company | ||
Non-controllinginterest
Total of owner's
equityShare capital
Capital reserves
| Other equity instruments | Less: | |
Treasuryshares
comprehensive
income
Special reserves Surplus reserves
| Other | General |
riskreserve
Undistributed
profit
Subtotal
Preference
shares
| Preference | Perpetual |
bond
Others
1. 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 | 150,000,000.00 | 26,745,438.81 | 176,745,438.81 | 176,745,438.81 | ||||||||||
| Others | ||||||||||||||
| 2. Beginning balance of current year | 4,108,212,217.00 | 947,863,834.02 | 13,422,205,160.21 | -15,904,760.02 | 2,217,913.77 | 1,195,116,522.37 | -693,814,231.92 | 18,965,896,655.43 | 584,587,863.76 | 19,550,484,519.19 | ||||
| 3. Changes in current year (“-” for decrease) | 7,085.00 | -5,699.86 | 20,710.71 | -34,466,581.86 | -2,054,858.73 | -1,720,871,697.00 | -1,757,371,041.74 | 4,482,422.84 | -1,752,888,618.90 | |||||
| 1) Total comprehensive income | -34,466,581.86 | -1,720,871,697.00 | -1,755,338,278.86 | 72,503,319.19 | -1,682,834,959.67 |
2) Capital increase and decrease by shareholders
| 7,085.00 | -5,699.86 | 20,710.71 | 22,095.85 | 22,095.85 |
(1) Common share invested by shareholders
| (2) Capital input by the holder of other equity instruments |
7,085.00 -5,699.86 20,710.71 22,095.85 22,095.85
| (3) Share-based payment attributable to owners' equity | ||||||||||||||
| (4) Others | ||||||||||||||
| 3) Profit distribution | -68,041,170.80 | -68,041,170.80 | ||||||||||||
| (1) Appropriation to surplus reserves | ||||||||||||||
| (2) Appropriation to general risk reserve | ||||||||||||||
| (3) Profit distribution to shareholders | -68,041,170.80 | -68,041,170.80 |
(4) Others
| 4) Transfers within shareholders' equity | ||||||||||||||
| (1) Capital reserves transferred into paid-in capital (or stock) |
| (2) Surplus reserves transferred into paid-in capital (or stock) | ||||||||||||||
| (3) Surplus reserves to recover loss | ||||||||||||||
| (4) Net changes of defined contribution plans transferred into Retained Earnings |
| (5) Other comprehensive income transferred into Retained Earnings | ||||||||||||||
| (6) Others | ||||||||||||||
| 5) Special reserves | -2,054,858.73 | -2,054,858.73 | 20,274.45 | -2,034,584.28 | ||||||||||
| (1) Provision of special reserves | 78,097,744.04 | 78,097,744.04 | 4,945,238.85 | 83,042,982.89 | ||||||||||
| (2) Use of special reserves | 80,152,602.77 | 80,152,602.77 | 4,924,964.40 | 85,077,567.17 | ||||||||||
| 6) Others | ||||||||||||||
| 4. Ending balance of current year | 4,108,219,302.00 | 947,858,134.16 | 13,422,225,870.92 | -50,371,341.88 | 163,055.04 | 1,195,116,522.37 | -2,414,685,928.92 | 17,208,525,613.69 | 589,070,286.60 | 17,797,595,900.29 |
The notes to the financial statements attached form part of these financial statementsLegal Representative: Chief Financial Officer: Chief Accountant:
BENGANG STEEL PLATES CO., LTD.STATEMENT OF CHANGES IN EQUITY
Forthe year ended 31 December 2024(Expressed in Renminbi unless otherwise indicated)
Items
Share capital
| Current period | ||
| Other equity instruments | ||
Capital reserves
Treasuryshares
| Less: | Other |
comprehensive income
Specialreserves
Surplus reserves
Undistributedprofits
Total shareholder’sequity
shares
| Preference | Perpetua |
l bond
Others
1. Ending balance of last year
4,108,219,302.00 947,858,134.16 12,852,074,188.80
50,371,341.88
3,681.16 1,195,116,522.37 -2,900,010,737.27 16,152,889,749.34
| - | |||||||||||
| Add: Change of accounting policies | |||||||||||
| Correction of errors for last period | |||||||||||
| Others |
2. Beginning balance of current year
4,108,219,302.00 947,858,134.16 12,852,074,188.80
3,681.16 1,195,116,522.37 -2,900,010,737.27 16,152,889,749.34
3. Changes in current year (“-” for decrease)
8,855.00 -7,939.13 -26,931,834.78
| -50,371,341.88 |
| -43,035,854.74 |
5,595.65 -5,188,686,716.67 -5,258,647,894.67
1) Total comprehensive income
-5,188,686,716.67 -5,231,722,571.41
| -43,035,854.74 | |||||||||||
| 2) Capital increase and decrease by shareholders | 8,855.00 | -7,939.13 | -26,931,834.78 | -26,930,918.91 | |||||||
| (1) Common share invested by shareholders | |||||||||||
| (2) Capital input by the holder of other equity instruments | 8,855.00 | -7,939.13 | 25,840.89 | 26,756.76 | |||||||
| (3) Share-based payment attributable to shareholders' equity | |||||||||||
| (4) Others | -26,957,675.67 | -26,957,675.67 | |||||||||
| 3) Profit distribution | |||||||||||
| (1) Appropriation of surplus reserves | |||||||||||
| (2) Profit distribution to shareholders | |||||||||||
| (3) Others | |||||||||||
| 4) Transfers within shareholders' equity | |||||||||||
| (1) Capital reserves transferred into paid-in capital (or stock) | |||||||||||
| (2) Surplus reserves transferred into paid-in capital (or |
stock)
| (3) Surplus reserves to recover loss | |||||||||||
| (4) Net changes of defined contribution plans transferred |
into Retained Earnings
| (5) Other comprehensive income transferred into retained earnings | |||||||||||
| (6) Others | |||||||||||
| 5) Special reserves | 5,595.65 | 5,595.65 | |||||||||
| (1) Provision of special reserves | 57,316,980.35 | 57,316,980.35 | |||||||||
| (2) Use of special reserves | 57,311,384.70 | 57,311,384.70 | |||||||||
| 6) Others |
4. Ending balance of current year
4,108,228,157.00 947,850,195.03 12,825,142,354.02
93,407,196.62
9,276.81 1,195,116,522.37 -8,088,697,453.94 10,894,241,854.67
The notes to the financial statements attached form part of these financial statementsLegal Representative: Chief Financial Officer: Chief Accountant:
BENGANG STEEL PLATES CO., LTD.STATEMENT OF CHANGES IN EQUITY (Continued)
Forthe year ended 31 December 2024(Expressed in Renminbi unless otherwise indicated)
Items
Share capital
| Previous period | ||
| Other equity instruments | ||
Capital reserves
Less:
Treasury
Othercomprehens
| shares | ive income |
Specialreserves
Surplus reserves
Undistributedprofits
Total shareholder’sequityPreference
Perpetual
| shares | bond |
Others
1. 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 |
2. Beginning balance of current year
4,108,212,217.00 947,863,834.02 12,852,053,478.09
58,212.15 1,195,116,522.37 -1,296,333,684.67 17,791,065,818.94
3. Changes in current year (“-” for decrease)
7,085.00 -5,699.86 20,710.71
| -15,904,760.02 |
| -34,466,581.86 |
-54,530.99 -1,603,677,052.60 -1,638,176,069.60
1) Total comprehensive income
-1,603,677,052.60 -1,638,143,634.46
| -34,466,581.86 | |||||||||||
| 2) Capital increase and decrease by shareholders | 7,085.00 | -5,699.86 | 20,710.71 | 22,095.85 | |||||||
| (1) Common share invested by shareholders | |||||||||||
| (2) Capital input by the holder of other equity instruments | 7,085.00 | -5,699.86 | 20,710.71 | 22,095.85 | |||||||
| (3) Share-based payment attributable to shareholders' equity | |||||||||||
| (4) Others | |||||||||||
| 3) Profit distribution | |||||||||||
| (1) Appropriation of surplus reserves | |||||||||||
| (2) Profit distribution to shareholders | |||||||||||
| (3) Others | |||||||||||
| 4) Transfers within shareholders' equity | |||||||||||
| (1) Capital reserves transferred into paid-in capital (or stock) |
| (2) Surplus reserves transferred into paid-in capital (or stock) | |||||||||||
| (3) Surplus reserves to recover loss | |||||||||||
| (4) Net changes of defined contribution plans transferred into |
Retained Earnings
earnings
| (5) Other comprehensive income transferred into retained | |||||||||||
| (6) Others | |||||||||||
| 5) Special reserves | -54,530.99 | -54,530.99 | |||||||||
| (1) Provision of special reserves | 63,360,278.27 | 63,360,278.27 | |||||||||
| (2) Use of special reserves | 63,414,809.26 | 63,414,809.26 | |||||||||
| 6) Others |
4. Ending balance of current year
4,108,219,302.00 947,858,134.16 12,852,074,188.80
3,681.16 1,195,116,522.37 -2,900,010,737.27 16,152,889,749.34
The notes to the financial statements attached form part of these financial statementsLegal Representative: Chief Financial Officer: Chief Accountant:
3. Basic Information of the Company
Bengang Steel Plates Co., Ltd. (hereinafter referred to as “Bengang Steel Plates” or “theCompany”), as approved in Liao-Zheng (1997) No. 57 by Liaoning People’s Government on27 March 1997, was incorporated as a joint stock limited company through public share offerof domestic listed foreign currency denominated shares (B shares) in the People’s Republic ofChina (the “PRC”) on 27 June 1997 by Benxi Steel and Iron (Group) Co., Ltd. (“BengangGroup”), through reorganization of operations, assets and liabilities of its plants, namely, SteelSmelting Plant, Primary Rolling Plant and Continuous Hot Rolling Plant.
As approved by China Securities Regulatory Commission (hereinafter referred to as “theCSRC”), the Company issued 400,000,000 B-shares at HKD 2.38 each in Shenzhen StockExchange on 10 June 1997. On 3 November 1997, the Company issued another 120,000,000A-shares (Renminbi common Shares) at RMB 5.40 each, and listed in Shenzhen StockExchange since 15 January 1998. The capital shares were totaled to 1,136,000,000 shares.
On 14 March 2006, according to the resolutions of the Shareholders’ Meeting regarding shareequity relocation, the Share Equity Relocation Scheme, Response to Bengang Steel Plate Co.,Ltd. about Share Equity Relocation issued by Liaoning Provincial Government State-ownedAsset Administrative Committee, Bengang Group – the only holder of non-negotiable state-owned legal person shares paid the consideration to the current shareholders to obtain thecurrent option for the 40,800,000 shares of the total 616,000,000 shares it was holding.Shareholding positions have been registered with China Securities Depository & ClearingCorporation Ltd. Shenzhen Office. However, the total amount of capital shares of BengangSteel Plates Co., Ltd. was not changed through the share equity relocation action.
According to the approval document “Zheng-Jian-Gong-Si-Zi [2006] No. 126” by ChinaSecurities Regulatory Commission on 30 June 2006, the Company was approved to place 2billion Renminbi common shares particularly to Bengang Group and the proceeds would beused to purchase the related assets of the Group. On the same day, Bengang Group receivedcircular Zheng-Jian-Gong-Si-Zi [2006] No. 127 issued by China Securities RegulatoryCommittee, and were exempted for the liability of undertaking the purchase offer. The liabilitywas caused by subscribing of the 2 billion new shares and the total shareholding was thusincreased to 2.5752 billion shares (accounting for 82.12% of the total capital shares of theCompany). On 28 August 2006, as approved by China Securities Depository & ClearingCorporation Ltd. Shenzhen Office, the registration and conditional placing procedures of the 2billion new shares were completed. On 28 September 2006, the privately placed shares were
approved by Shenzhen Stock Exchange to be placed in the stock market. The placing price wasRMB4.6733 per share.
Approved by the China Securities Regulatory Commission [2017] No. 1476, Bengang SteelPlate Co., Ltd. privately placed no more than 739,371,534 RMB ordinary shares (A shares) tono more than 10 issuers. The non-public offering was completed on 9 February 2018, and739,371,532 shares were actually issued. The placing price was RMB5.41 per share.
On August 20, 2021, the State-owned Assets Supervision and Administration Commission ofthe People's Government of Liaoning Province (hereinafter referred to as Liaoning SASAC)and Ansteel Group Co., Ltd. (hereinafter referred to as Ansteel) signed the "Agreement on theGratuitous Transfer of State-owned Equity in Bengang Group Co., Ltd. between the State-owned Assets Supervision and Administration Commission of the People's Government ofLiaoning Province and Ansteel Group Co., Ltd." According to the agreement, LiaoningSASAC will transfer its 51% equity in Bengang Group Co., Ltd. (hereinafter referred to asBengang Group) to Ansteel Group Co., Ltd. for free. After the completion of this free transfer,Ansteel became the controlling shareholder of Bengang Group, and Ansteel indirectly hold
81.07% of the total share capital of Bengang Steel Plates.
As at 31 December 2024, the capital shares were totaled to 4,108,221,073.00 shares.The Company’s uniform social credit code: 91210000242690243E.The Company’s registered address: 16th Renmin Road, Pingshan District, Benxi, LiaoningProvince.The Company’s legal representative: Huang Zuowei.
The parent company of Bengang Steel Plates Co., Ltd is Benxi Steel and Iron (Group) Co., Ltd.and the actual controller is Ansteel Group Co., Ltd..
Bengang Steel Plates Co., Ltd. belongs to ferrous metal smelting and rolling processingindustry and is mainly involved in producing and trading of ferrous metal products.
The financial statements have been approved for reporting by the board of directors of theCompany on 2 April 2025.
4. Basis of preparation
(1) Basis of preparation
The financial statements have been prepared in accordance with “Accounting Standards forBusiness Enterprises – Basic Standard” and relevant specific standards, application materials,
interpretations (together hereinafter referred to as “Accounting Standards for BusinessEnterprises”) issued by the Ministry of Finance, and “Information Disclosure Rules forCompanies of securities for public issuance No. 15 – General Regulations for FinancialStatements” issued by the China Securities Regulatory Commission.
(2) Going concern
The financial statements have been prepared on a going concern basis.
5. Significant accounting policies and accounting estimates
The following disclosed content covers the specific accounting policies and accountingestimates that are adopted by the Company based on the actual production and operationcharacteristics. Please see Note (10) Financial instruments, (11) Inventory, (14) Fixed assets,
(17) Intangible assets, (23) Revenue under
“5. Significant accounting policies andaccounting estimates” for details.
(1) Statement of compliance with China Accounting Standards for Business Enterprises
The financial statements present truly and completely the financial position, operation resultsand cash flows of the consolidated and parent company during the reporting period inaccordance with China Accounting Standards for Business Enterprises.
(2) Accounting year
The Accounting year is from 1 January to 31 December.
(3) Operating period
The operating period is twelve months.
(4) Functional currency
The Company’s functional currency is RMB.
(5) The accounting treatment for Business combination under/not under common control
Business combination under common controlThe assets and liabilities that the Company acquired in a business combination shall bemeasured on the basis of their carrying amount of acquiree’s assets, liabilities (as well as thegoodwill arising from the business combination) in the consolidated financial statement of theultimate controller on the combining date. As for the balance between the carrying amount ofthe net assets obtained by the Company and the carrying amount of the consideration paid byit (or the total par value of the shares issued), capital reserve needs to be adjusted. If the capitalreserve is not sufficient, any excess shall be adjusted against retained earnings.
Business combination not under common control
The Company shall, on the acquisition date, measure the assets given and liabilities incurredor assumed by an enterprise for a business combination in light of their fair values, and shallrecord the balances between them and their carrying amounts into the profits and losses at thecurrent period. The Company shall recognize the positive balance between the combinationcosts and the fair value of the identifiable net assets it obtains from the acquiree as goodwill.The Company shall treat the negative balance between the combination costs and the fair valueof the identifiable net assets it obtains from the acquiree into the profits and losses of the currentperiod. All identifiable assets, liabilities and contingent liabilities of the acquiree that meet therecognition criteria acquired in the merger are measured at fair value on the acquisition date.
Directly related expenses incurred for a business combination are recorded in the currentperiod's profit or loss when incurred; transaction costs of equity securities or debt securitiesissued for a business combination are included in the initial recognition amount of the equitysecurities or debt securities.
(6) Scope of consolidation and Consolidation of Financial Statements
1. Scope of consolidation
The scope of consolidation of consolidated financial statements is determined based on controland the scope of consolidation includes the Company and all its subsidiaries. Control meansthat the Company has power over the investee, enjoys variable returns through participation inthe relevant activities of the investee, and has the ability to use the power over the investee toinfluence the amount of its returns.
2. Procedure of consolidation
When preparing consolidated financial statements, the parent shall consider the entire group asan accounting entity, adopt uniform accounting policies to prepare the consolidated financialstatements which reflect the overall financial position, operating results and cash flows of thegroup. The impact of internal transactions between the Company and its subsidiaries andbetween subsidiaries shall be offset. If internal transactions indicate that relevant assets havesuffered impairment losses, such losses shall be fully recognized. The accounting policy andaccounting period of the subsidiaries within the consolidation scope shall be in accordancewith those of the Company. If not, it is necessary to make the adjustment according to theCompany’s accounting policies and accounting period when preparing the consolidatedfinancial statements.
The owners’ interests, profit or loss, and comprehensive income of the subsidiary attributableto the non-controlling shareholders shall be presented separately in the shareholders’ equity ofthe consolidated balance sheet and under the item of net profit of the consolidated statement of
comprehensive income and under the item of total comprehensive income. Where lossesassumed by the minority exceed the minority’s interests in the beginning equity of a subsidiary,the excess shall be charged against the minority’s interests.
(1) Increasing new subsidiaries and businesses
If the Company has a new subsidiary due to business combination under common controlduring the reporting period, it shall adjust the beginning balance in the consolidated statementof financial position when preparing consolidated statement of financial position. The revenue,expenses and profits of the subsidiaries from the acquisition date to the end of the reportingperiod are included in the Company’s consolidated statement of comprehensive income. Thecash flow of the subsidiaries from the acquisition date to the end of the reporting period isincluded in the Company’s consolidated statement of cash flows. And meanwhile theCompany shall adjust the relevant items of the comparative financial statements as if thereporting entity for the purpose of consolidation has been in existence since the date theultimate controlling party first obtained control.
When the Company becomes capable of exercising control over an investee under commoncontrol due to additional investment or other reasons, adjustment shall be made as if thereporting entity after the combination has been in existence since the date the ultimatecontrolling party first obtained control. The investment income recognized between date ofpreviously obtaining equity investment and the date the acquiree and acquirer are undercommon control, which is later, and the combining date, other comprehensive income andother changes of net assets arising from the equity investment previously held beforeobtaining the control the acquiree shall be adjusted against the prior retained earnings of thecomparative financial statements and the current profit or loss respectively.
If it is not under common control, it will be included in the consolidated financial statements
from the date of acquisition based on the fair value of each identifiable asset, liability andcontingent liability determined on the date of acquisition.
When the Company becomes capable of exercising control over an investee not undercommon control due to additional investment or other reasons, the acquirer shall remeasureits previously held equity interest in the acquiree to its fair value at the acquisition date. Thedifference between the fair value and the carrying amount shall be recognized as investmentincome for the period when the acquisition takes place. When the previously held equityinvestment is accounted for under the equity method, any other comprehensive incomepreviously recognized in relation to the acquiree’s equity changes shall be transferred to profitor loss for the current period when the acquisition takes place.
(2) Disposing subsidiaries or businesses
1. General treatment
When the Company loses control over an investee due to partial disposal or other reasons, theacquirer shall re-measure the remaining equity interests in the acquiree to its fair value at theacquisition date. The difference, between sums of consideration received for disposal equityshares and fair value of the remaining shares, and sums of share of net assets of the subsidiarycalculated continuously from the acquisition date or the combination date based on theprevious shareholding proportion and goodwill, shall be recognized as investment income forthe period when the Company loses control over acquiree. When the previously held equityinvestment is accounted for under the equity method, any other comprehensive incomepreviously recognized in relation to the acquiree’s equity changes, and other equity changesrather than changes from net profit, other comprehensive income and profit distribution, shallbe transferred to investment income for the current period when the Company loses controlover acquiree.
2. Disposing subsidiaries by multiple transactions
Where the Company loses control of a subsidiary in multiple transactions in which itdisposes of its subsidiary in stages, in determining whether to account for the multipletransactions as a single transaction, the Company shall consider all of the terms andconditions of the transactions and their economic effects. One or more of the following mayindicate that the Company shall account for the multiple arrangements as a single transaction:
(a) Arrangements are entered into at the same time or in contemplation of each other;(b) Arrangements work together to achieve an overall commercial effect;(c) The occurrence of one arrangement is dependent on the occurrence of at least oneother arrangement; and(d) One arrangement considered on its own is not economically justified, but it iseconomically justified when considered together with other arrangements.
If each of the multiple transactions forms part of a bundled transaction which eventuallyresults in loss of control of the subsidiary, these multiple transactions shall be accounted foras a single transaction. In the consolidated financial statements, the difference between theconsideration received and the corresponding proportion of the subsidiary’s net assets ineach transaction prior to the loss of control shall be recognized in other comprehensiveincome and transferred to the profit or loss when the Company eventually loses control ofthe subsidiary.
If each of the multiple transactions which eventually results in loss of control of the
subsidiary do not form part of a bundled transaction, apply the treatment of disposing partiallong-term equity investments in a subsidiary without loss of control prior to the loss ofcontrol. After the loss of control, apply the treatment of disposing the subsidiary in commoncases.
(3) Acquiring the subsidiaries’ equity interest held by non-controlling shareholders
Where the Company has acquired a subsidiary’s equity interest held by non-controllingshareholders, the difference between the increase in the cost of long-term investments as aresult of acquisition of non-controlling interests and the share of net assets of the subsidiarycalculated continuously from the acquisition date or the combination date based on the newshareholding proportion shall be adjusted to the capital reserve( capital premium or sharepremium) in the consolidated financial statements. If the balance of the capital reserve is notsufficient, any excess shall be adjusted against retained earnings.
(4) Disposing portion of equity investments in subsidiaries without losing control
When the Company disposes of a portion of the long-term equity investments in a subsidiarywithout loss of control, the difference between the amount of the consideration received andthe corresponding portion of the nest assets of the subsidiary calculated continuously fromthe acquisition date or the combination date related to the disposal of the long-term equityinvestments shall be adjusted to the capital reserve (capital premium or share premium) inthe consolidated financial statements. If the balance of the capital reserve is not sufficient,any excess shall be adjusted against retained earnings.
(7) Classification of joint venture arrangements and accounting treatment
Joint venture arrangements are divided into joint operations and joint ventures.
When the Company is a joint venture party of a joint venture arrangement and have the assetsrelated to the arrangement and assumes the liabilities related to the arrangement, it is a jointoperation.
The Company confirms the following items related to the share of interest in the jointoperation and performs accounting treatment in accordance with the relevant enterpriseaccounting standards:
a. Confirm the assets held by the company separately, and confirm the assets held jointly bythe Company's share;b. Recognize the liabilities assumed by the Company separately and the liabilities jointlyassumed by the company's share;c. Recognize the income generated by the sale of the Company’s share of common operatingoutput;d. Recognize the revenue generated from the sale of joint operations based on the Company'sshare;e. Confirm the expenses incurred separately and the expenses incurred in the joint operationaccording to the Company's share.
The Company's investment in joint ventures is accounted for using the equity method. Fordetails, see Note (13) Long-term equity investments under “3. Significant accountingpolicies and accounting estimates”.
(8) Recognition of cash and cash equivalents
The term “cash” refers to the cash on hand and the unrestricted deposit. And the term “cashequivalents” refers to short-term (maturing within three months from acquisition) and highlyliquid investments that are readily convertible to known amounts of cash and which are subjectto an insignificant risk of change in value.
(9) Foreign currency transaction and translation of foreign currency financial statements
1. Foreign currency transactions
Foreign currency transactions are translated into RMB at the current rate at the day oftransactions.
The foreign currency monetary items shall be translated at the spot exchange rate on thebalance sheet date. The balance of exchange arising from the difference between the spotexchange rate on the balance sheet date and the spot exchange rate at the time of initialrecognition or prior to the balance sheet date, except those arising from the raising of specialforeign debt for the purchase or construction of capitalizable assets thus shall be capitalizedaccording to the borrowing costs capitalization principle, shall be recorded into the profits andlosses at the current period.
2. Translation of foreign currency financial statements
The asset and liability items in the statement of financial position shall be translated at a spotexchange rate on the balance sheet date. Among the owner's equity items, except the ones as"undistributed profits", others shall be translated at the spot exchange rate at the time whenthey are incurred. The income and expense items in the income statement shall be translatedusing an exchange rate that is determined in a systematic and reasonable manner andapproximates the spot exchange rate on the transaction date.
When disposing an overseas business, the Company shall shift the balance, which is presentedunder the items of the owner's equities in the statement of financial position and arises fromthe translation of foreign currency financial statements related to this oversea business, into thedisposal profits and losses of the current period.
(10) Financial instruments
The Company recognizes a financial asset, financial liability or equity instrument when itbecomes a party to a financial instrument contract.
1. Classification of financial instruments
The Company shall classify financial assets on the basis of both the entity’s business model formanaging the financial assets and the contractual cash flow characteristics of the financial assetas: financial assets measured at amortised cost, financial assets measured at fair value throughother comprehensive income and financial assets measured at fair value through profit or lossat initial measurement.A financial asset which is not designated as a financial asset measured at fair value throughprofit or loss shall be measured at amortised cost if both of the following conditions are met.- The financial asset is held within a business model whose objective is to hold financial
assets in order to collect contractual cash flows.- The contractual terms of the financial asset give rise on specified dates to cash flows thatare solely payments of principal and interest on the principal amount outstanding.
A financial asset shall be measured at fair value through other comprehensive income if bothof the following conditions are met.- The financial asset is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets.- The contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding.
The Company may make an election at initial recognition for non-trading equity instrumentinvestments whether it is designated as a financial asset (equity instrument) that is measured atfair value through other comprehensive income. The designation is made on the basis of asingle investment, and the related investment meets the definition of an equity instrument fromthe issuer's perspective.
Other financial assets other than these are classified as financial assets measured at fair valuethrough profit or loss. At the initial recognition, in order to eliminate or significantly reduceaccounting mismatches, financial assets that should be classified as measured at amortizedvalue or financial assets measured at fair value through other comprehensive income can bedesignated as financial assets measured at fair value through profit or loss.
The Company shall classify financial liabilities as financial liabilities measured at amortisedcost and financial liabilities measured at fair value through profit or loss at initial measurement.
The Company may, at initial recognition, designate a financial liability as measured at fair valuethrough profit or loss because either:
(a) it eliminates or significantly reduces an accounting mismatch;(b) a group of financial liabilities or financial assets and financial liabilities is managed and itsperformance is evaluated on a fair value basis, in accordance with a documented riskmanagement or investment strategy, and information about the group is provided internallyon that basis to the entity’s key management personnel;(c) the financial liability contains embedded derivatives that need to be separated.
2. Recognition and measurement of financial instruments
(1) Financial assets measured at amortised cost
Financial assets measured at amortized cost include notes receivables, accounts receivables,other receivables, long-term receivables, debt investments, etc. At initial recognition, theCompany shall measure a financial asset at its fair value plus or minus transaction costs thatare directly attributable to the acquisition or issue of the financial asset. The Company shallmeasure account receivables at their transaction price if the account receivables do not containa significant financing component and accounts receivables that the company has decided notto consider for a financing component of no more than one year.
Interests calculated by using the effective interest method during the holding period shall berecognized in profit or loss.
When recovering or disposing the receivables, the difference between the price obtained andthe carrying value shall be recognized in current profit or loss.
(2) Financial assets measured at fair value through other comprehensive income (debt
instruments)Financial assets measured at fair value through other comprehensive income (debt instruments)include receivables financing, other debt investments, etc. At initial recognition, the Companyshall measure a financial asset at its fair value plus transaction costs that are directly attributableto the acquisition or issuance of the financial asset. The financial assets are subsequentlymeasured at fair value. Changes in fair value are included in other comprehensive income
except for interest calculated using the effective interest method, impairment losses or gainsand exchange gains and losses. When the financial assets are derecognized, the accumulatedgain or loss previously recognized in other comprehensive income is transferred from othercomprehensive income and recognized in profit or loss.
(3) Financial assets at fair value through other comprehensive income (equity
instruments)Financial assets at fair value through other comprehensive income (equity instruments). includeother equity instrument investments, etc. At initial recognition, the Company shall measure afinancial asset at its fair value plus transaction costs that are directly attributable to theacquisition or issue of the financial asset. The financial assets are subsequently measured atfair value. Changes in fair value are included in other comprehensive income. The dividendsobtained are recognised in profit and loss.
When the financial assets are derecognized, the accumulated gain or loss previously.recognised in other comprehensive income is transferred from other comprehensive incomeand recognised in retained earnings.
(4) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include transactional financial assets,derivative financial assets, other non-current financial assets, etc. The Company shall measurethe financial assets at fair value at initial recognition. Transaction costs are recognised in profitor loss. Changes in fair value are included in profit or loss.
(5) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include current financial liabilities,derivative financial liabilities, etc. The Company shall measure the financial assets at fair valueat initial recognition. Transaction costs are recognised in profit or loss. Changes in fair valueare included in profit or loss.
When the financial liabilities are derecognized, the difference between the fair value and the.initially recorded amount is recognized as investment income, and the gains and losses from
changes in fair value are adjusted.
(6) Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost include short-term borrowings, notes. payables,accounts payables, other payables, long-term borrowings, bonds payables, long-term payables.At initial recognition, the Company shall measure a financial liability at its fair value plus.transaction costs that are directly attributable to the acquisition or issue of the financial asset.
Interests calculated by using the effective interest method during the holding period shall berecognized in profit or loss.
When the financial liabilities are derecognized, the difference between the price obtained and.the carrying value shall be recognised in profit and loss.
3. Termination of recognition of financial assets and financial assets transfer
When one of the following conditions is met, the company terminates the recognition offinancial assets.- Termination of contractual rights to receive cash flows from financial assets;- The financial assets have been transferred, and almost all the risks and rewards in theownership of the financial assets have been transferred to the transferee;- The financial assets have been transferred. Although the company has neither transferred
nor retained almost all the risks and rewards of the ownership of the financial assets, it hasnot retained control of the financial assets.
If the Company modifies or renegotiates a contract with its counterparty and the modificationconstitutes a substantial modification, the original financial asset will be derecognized and anew financial asset will be recognized in accordance with the modified terms.
If it retained nearly all of the risks and rewards related to the ownership of the financial asset,it shall not stop recognizing the financial asset.
To judge whether the transfer of a financial asset can satisfy the conditions as prescribed inthese Standards for stopping the recognition of a financial asset, the Company shall follow theprinciple of the substance over form.Transfer of an entire financial asset can be divided into partial financial assets transfer andentire financial asset transfer. If the transfer of an entire financial asset satisfies the conditions
for de-recognition, the difference between the amounts of the following 2 items shall berecorded in the profits and losses of the current period:
(1) The book value of the transferred financial asset; and
(2) The sum of consideration received from the transfer, and the accumulative amount of the
changes of the fair value originally recorded in the owners' equities (in the event that thefinancial asset involved in the transfer is a financial asset Available-for-sale).
If the transfer of partial financial asset satisfies the conditions to derecognize, the entire bookvalue of the transferred financial asset shall, between the portion whose recognition has beenstopped and the portion whose recognition has not been stopped (under such circumstance,the service asset retained shall be deemed as a portion of financial asset whose recognitionhas not been stopped), be apportioned according to their respective relative fair value, andthe difference between the amounts of the following 2 items shall be included into the profitsand losses of the current period :
(1) The book value of the portion whose recognition has been stopped; and
(2) The sum of consideration of the portion whose recognition has been stopped, and the
portion of the accumulative amount of the changes in the fair value originally recorded in theowner's equities which is corresponding to the portion whose recognition has been stopped(in the event that the financial asset involved in the transfer is a financial asset Available-for-sale).
If the transfer of financial assets does not satisfy the conditions to stop the recognition, itshall continue to be recognized as financial assets and the consideration received shall berecognized as financial liabilities.
4. Termination of recognition of financial liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in part maythe recognition of the financial liability be terminated in all or partly. Where the Company(debtor) enters into an agreement with a creditor so as to substitute the existing financialliabilities by way of any new financial liability, and if the contractual stipulation regardingthe new financial liability is substantially different from that regarding the existing financialliability, it shall terminate the recognition of the existing financial liability, and shall at thesame time recognize the new financial liability.
Where the Company makes substantial revisions to part or all of the contractual stipulationsof the existing financial liability, it shall terminated the recognition of the existing financialliability or part of it, and at the same time recognize the financial liability after revising thecontractual stipulations as a new financial liability.
Where the recognition of a financial liability is totally or partially terminated, the Companyshall include into the profits and losses of the current period the difference between thecarrying amount which has been terminated from recognition and the considerations it haspaid (including the non-cash assets it has transferred out and the new financial liabilities ithas assumed).
Where the Company buys back part of its financial liabilities, it shall distribute, on the dateof repurchase, the carrying amount of the whole financial liabilities in light of thecomparatively fair value of the part that continues to be recognized and the part whoserecognition has already been terminated. The gap between the carrying amount which isdistributed to the part whose recognition has terminated and the considerations it has paid(including the noncash assets it has transferred out and the new financial liabilities it hasassumed) shall be recorded into the profits and losses of the current period.
5. Determination of the fair value of the financial assets (liabilities)
If active markets for the financial instruments exist, the fair value shall be measured by quotedprices in the active markets. If active markets for the financial instruments do not exist,
valuation techniques shall be applied for the measurement. The Company uses valuationtechniques appropriate in the circumstances and for which sufficient data are available tomeasure fair value. The Company chooses relevant observable inputs for identical or similarassets or liabilities. Only when relevant observable inputs are unavailable or should theCompany use unobservable inputs for the asset or liability.
6. Impairment provision of the financial assets
The Company recognize the expected credit loss on financial assets measured at amortized cost,financial assets measured at fair value through other comprehensive income (debt instruments) ,financial guarantee contract, and so on, on the individual or portfolio basis.The Company considers all reasonable and relevant information, including past events, currentconditions, and forecasts of future economic conditions, and uses the risk of default as theweight to calculate the probability-weighted amount of present value of difference between thecash flow receivable from the contract and the cash flow expected to be received to confirmthe expected credit loss.
For account receivables and contract assets recognized according to Accounting Standards forBusiness Enterprises No. 14 Revenue, whether a significant financing component is containedor not, the Company shall always measure the loss allowance at an amount equal to lifetimeexpected credit losses.
For lease receivables recognized according to Accounting Standards for Business EnterprisesNo. 21 Lease, the Company shall always measure the loss allowance at an amount equal tolifetime expected credit losses.For other financial instruments, the Company shall assess changes in the credit risk of therelevant financial instruments since initial recognition at each balance sheet date.
The company compares the risk of default on the balance sheet date of financial instrumentswith the risk of default on the date of initial recognition to determine the relative change in therisk of default during the expected life of the financial instrument to assess whether there is asignificant increase in credit risk of financial assets since the initial recognition. Generally, theCompany believes that the credit risk of the financial instrument has significantly increasedover 30 days after the due date, unless there is solid evidence that the credit risk of the financialinstrument has not increased significantly since initial recognition.
If the credit risk of a financial instrument at the reporting date is relatively low, the Companyconsiders that the credit risk of the financial instrument has not increased significantly sincethe initial recognition.
If the credit risk of the financial instrument has increased significantly since the initialconfirmation, the Company shall measure the loss allowance for a financial instrument at anamount equal to the lifetime expected credit losses. If the credit risk on a financial instrumenthas not increased significantly since initial recognition, the Company shall measure the lossallowance for that financial instrument at an amount equal to 12-month expected credit losses.The increase or reversal amount of loss allowance thus formed shall be included in the currentprofits and losses as impairment losses or gains. For financial assets at fair value through othercomprehensive income (debt instruments), loss provisions are recognised in othercomprehensive income and impairment losses or gains are recognised in profit or loss at thecurrent period without reducing the carrying amount of the financial asset in the balance sheet.
(11) Inventory
1. Inventory classification
Inventories include material in transit, raw material, turnover materials, finished goods, workin process, issue commodity, materials for consigned processing, etc.
Inventory is initially measured at cost. Inventory cost includes purchase cost, processing costand other expenditures incurred to bring inventory to its current location and state.
2. Valuation method for inventory dispatched
The weighted average method is used to confirm the actual cost of the inventories dispatched.
3. Inventory system
The Company uses perpetual inventory system.
4. 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.
5. The basis for confirming the net realizable value of inventories and the methods to
make provision for the inventory impairment lossOn the balance sheet date, inventories shall be measured at the lower of cost and net realizablevalue. When the cost of inventories is higher than its net realizable value, provision forinventory impairment loss shall be made. The net realizable value refers to the amount of theestimated selling price of the inventory minus the estimated costs that will occur at the time ofcompletion, estimated selling expenses, and relevant taxes in daily activities.
The net realizable value of inventories (finished goods, stock commodity, material, etc.) heldfor direct selling in the daily business activity shall be calculated by deducting the estimatedsale expense and relevant taxes from the estimated sale price of inventories; The net realizablevalue of inventories for further processing in the daily business activity shall be calculated bydeducting the estimated cost of completion, estimated sale expense and relevant taxes from theestimated sale price of inventories; The net realizable value of inventories held for theexecution of sales contracts or labor contracts shall be calculated on the ground of the contractprice. If the Company holds more inventories than the quantities subscribed in the salescontract, the net realizable value of the excessive part of the inventories shall be calculated onthe ground of the general sales price.
After the inventory impairment is withdrawn, if the factors that previously affected the write-down of the inventory value have disappeared, causing the net realizable value of the inventoryto be higher than its book value, it shall be reversed within the amount of the inventoryimpairment that has been withdrawn, and the reverted amount shall be included in the currentprofit and loss.
(12) Contract asset
1. Recognition methods and criteria of contract assets
When either party to a contract has performed, the Company shall present the contract in thestatement of financial position as a contract asset or a contract liability, depending on therelationship between the Company’s performance and the customer’s payment. If theCompany have the rights to receive consideration (the right is conditioned on factors otherthan the passage of time) by transferring goods or services to a customer, the entity shallpresent the contract as a contract asset. Contract assets and contract liabilities under the samecontract are disclosed in net amount. An entity shall present any unconditional rights toconsideration (only the passage of time is required) separately as a receivable.
2. Expected credit loss of contract assets
For the accounting policy of the expected credit loss of contract assets, please refer to Note
(10) 6. Impairment provision of the financial assets under “3. Significant accounting policies
and accounting estimates”
(13) Long-term equity investment
1. Criteria of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists onlywhen decisions about the relevant activities require the unanimous consent of the partiessharing control. If the Company and other joint venture have joint control of the investee andhave rights to the net assets of the investee, the investee is a joint venture of the Company.
Significant influence is the power to participate in the financial and operating policy decisionsof the investee but not control or join control of those policies. If the Company could exertsignificant influence over the investee, the investee is the associate of the Company.
2. The initial cost of long-term equity investment from business acquisition
(1) Long-term equity investment from business acquisition
For a business combination under common control, the initial investment cost of the long-termequity investment shall be the absorbing party’s share of the carrying amount of the owner’sequity of the party being absorbed in the consolidated financial statements of the ultimatecontrolling party at combination date. The difference between the initial investment cost andthe carrying amount of the previously held equity investment, together with the additionalinvestment cost for new shares at combination date, shall be adjusted to the capital reserve. Ifthe balance of capital reserve is not sufficient, any excess shall be adjusted to retained earnings.
When an investor becomes capable of exercising control over an investee due to additionalinvestment or other reasons, the difference between the initial investment cost recognized inaccordance with the above principles and the sum of the book value of the long-term equityinvestment before the merger plus the book value of the cost for the further shares acquired onthe merger date, shall be adjusted to the capital reserve. If the balance of capital reserve is notsufficient, any excess shall be adjusted to retained earnings.
For a business combination not under common control, the initial investment cost of the long-term equity investment shall be the acquisition cost at the acquisition date. When an investorbecomes capable of exercising control over an investee due to additional investment or otherreasons, the initial investment cost under the cost method shall be the carrying amount ofpreviously held equity investment together with the additional investment cost.
(2) The initial cost of the long-term equity investment other than from business acquisition
The initial cost of a long-term equity investment obtained by making payment in cash shall bethe purchase cost which is actually paid.
The initial cost of a long-term equity investment obtained on the basis of issuing equitysecurities shall be the fair value of the equity securities issued.
3. Subsequent measurement and profit or loss recognition
(1) Cost method
The Company adopts cost method for the long term investment in subsidiary company unlessthe investment qualifies as held for sale. An investing enterprise shall, in accordance with theattributable share of the net profits or losses of the invested entity, recognize the investmentprofits or losses except the dividend declared but unpaid, which is included in the paymentwhen acquiring the investment.
(2) Equity method
A long-term equity investment in an associate or a joint venture shall be accounted for usingthe equity method. Where the initial investment cost of a long-term equity investment exceedsinvestor’s interest in the fair values of an investee’s identifiable net assets at the acquisitiondate, no adjustment shall be made to the initial investment cost. Where the initial cost is lessthan the investor’s interest in the fair values of the investee’s identifiable net assets at theacquisition date, the difference shall be credited to profit or loss for the current period, and thecost of long-term equity investment shall be adjusted accordingly.
The Company shall recognize its share of the investee’s net profits or losses, as well as its shareof the investee’s other comprehensive income, as investment income or losses and othercomprehensive income, and adjust the carrying amount of the investment accordingly. Thecarrying amount of the investment shall be reduced by the portion of any profit distributions orcash dividends declared by the investee that is attributable to the investor. The investor’s shareof the investee’s owners’ equity changes, other than those arising from the investee’s net profitor loss, other comprehensive income or profit distribution, and the carrying amount of the long-term equity investment shall be adjusted accordingly.
During the holding period, if the investee makes consolidated financial statements, theCompany shall calculate its share based on the investee’s net profit, other comprehensiveincome and the amount of other owners' equity attribute to the investee in the consolidatedfinancial statements. The investor shall recognize its share of the investee’s net profits or lossesafter making appropriate adjustments according to the Company’s accounting principles andoperating period based on the fair values of the investee’s identifiable net assets.
The unrealized profits or losses resulting from transactions between the investor and itsassociate or joint venture shall be eliminated in proportion to the investor’s equity interest inthe investee, based on which investment income or losses shall be recognized, except thetransaction of investment or sale of assets is a business. Any losses resulting from transactionsbetween the investor and investee which are attributable to asset impairment shall berecognized in full.
The company’s net losses incurred by joint ventures or associates, in addition to assumingadditional loss obligations, are limited to the book value of long-term equity investments andother long-term equity that essentially constitutes net investment in joint ventures or associates.If a joint venture or associated enterprise realizes net profits in the future, the company resumesrecognizing its share of profits after the share of profits makes up for the share of unrecognizedlosses.
(3) Disposal of long-term equity investment
When disposing long-term equity investment, the difference between the proceeds actuallyreceived and the carrying amount shall be recognized in profit or loss for the current period.
Partial disposal of long-term equity investments accounted for by the equity method, and theremaining equity is still accounted for by the equity method, the other comprehensive incomerecognized by the original equity method shall be carried forward according to the same basis
as the direct disposal of related assets or liabilities by the investee. All other changes in theinterests of the holders are carried forward to the current profit and loss on a pro rata basis.
When an investor can no longer exercise joint control of or significant influence over aninvestee due to disposal of equity investment or other reasons, any other comprehensive incomepreviously recognized shall be accounted for on the same basis as would have been required ifthe investee had directly disposed of the related assets or liabilities for the current period upondiscontinuation of the equity method. Other owner's equity change shall be transferred intoprofit or loss of current period in full when the Company cease to adopt the equity method.
When an investor can no longer control the investee due to partial disposal, when the individualfinancial statements are prepared, the remaining equity can exercise joint control or significantinfluence on the investee, the equity method shall be used to account for the remaining equity.It is deemed that the equity method is adopted for adjustment since the acquisition, and theother comprehensive income recognized before the control of the investee is obtained is carriedforward on the same basis as the direct disposal of related assets or liabilities by the investee,because the equity method is used for accounting. The confirmed changes in other owners’equity are carried forward to the current profit and loss on a pro rata basis. If the remainingequity cannot exercise joint control or exert significant influence on the investee, it shall berecognized as a financial asset, and the difference between its fair value and book value on thedate when control is lost shall be included in the current profit and loss, and othercomprehensive income and other owner’s interests previously recognized shall be transferredto profit or loss in full.
If the equity investment of a subsidiary is disposed through multiple transactions until it losescontrol, which is a package transaction, each transaction shall be accounted as a transactionthat disposes of the equity investment of the subsidiary and loses control. Each transactionbefore the loss of control, the difference between the disposal price and the book value of thecorresponding disposed part of long-term equity investment is firstly recognized as othercomprehensive income in individual financial statements, and then transferred to the currentprofit and loss when the control is lost. If it is not a package transaction, each transaction shallbe accounted separately.
(14) Fixed assets
1. Recognition of Fixed assets
The term "fixed assets" refers to the tangible assets held for the sake of producing commodities,rendering labor service, renting or business management and of which useful life is in excess
of one fiscal year. No fixed asset may be recognized unless it simultaneously meets theconditions as follows:
(1) The economic benefits pertinent to the fixed asset are likely to flow into the enterprise; and
(2) The cost of the fixed asset can be measured reliably.
Fixed assets are initially measured at cost (and considering the impact of expected dismantlingcost factors).
Subsequent expenditures related to fixed assets are included in the cost of fixed assets whenthe related economic benefits are likely to flow in and their costs can be reliably measured; thebook value of the replaced part is derecognized; all other subsequent expenditures are incurredshall be included in the current profit and loss.
2. Fixed assets depreciation
Fixed assets are depreciated under the straight line method. The depreciation rate is determinedaccording to the category of assets, the useful life and the expected residual rate. If thecomponents of the fixed assets have different useful lives or provide the economic benefits ina different way, then different depreciation rate or method shall be applied and the depreciationof the components shall be calculated separately.
Details of classification, depreciation period, residual value rate and annual depreciation rateare as follows:
Category Depreciation method
DepreciationPeriod
Residual Value
Rate (%)
Rate(%)
| Depreciation | ||||
| Plants and Buildings | straight line method | 40 years | 5.00 | 2.38 |
| Machinery | straight line method | 17-24 years | 5.00 | 3.96-5.59 |
| Transportation and |
other equipment
straight line method
5-12 years
5.00 7.92-19.00
4. Disposal of fixed assets
When a fixed asset is disposed, or it is expected that no economic benefits will be generatedthrough use or disposal, the recognition of fixed asset shall be de terminated. The amount ofdisposal income of fixed assets raising from sell, transfer, scrapping or damage shall beincluded in the current profit and loss after deducting its book value and related taxes.
(15) Construction in progress
Construction in progress is measured at the actual cost incurred. The actual cost includesconstruction costs, installation costs, borrowing costs that meet the capitalization conditions,
and other necessary expenditures incurred before the construction in progress reaches itsintended use status. Construction in progress is transferred to fixed asset when it has reachedits working condition for its intended use and depreciation will be accrued from the next month.
(16) Borrowing costs
1. Principle of the recognition of capitalized borrowing costs
Where the borrowing costs incurred to an enterprise can be directly attributable to theacquisition and construction or production of assets eligible for capitalization, it shall becapitalized and recorded into the costs of relevant assets. Other borrowing costs shall berecognized as expenses on the basis of the actual amount incurred, and shall be recorded intothe current profits and losses.
Assets eligible for capitalization refer to the fixed assets, investment property, inventories andother assets, of which the acquisition and construction or production may take quite a long timeto get ready for its intended use or for sale.
2. The capitalization period of borrowing costs
The capitalization period shall refer to the period from the commencement to the cessation ofcapitalization of the borrowing costs, excluding the period of suspension of capitalization ofthe borrowing costs.
The borrowing costs shall not be capitalized unless they simultaneously meet the followingrequirements:
(1) The asset disbursements have already incurred, which shall include cash, transferred non-
cash assets or interest bearing debts paid for the acquisition and construction or productionactivities for preparing assets eligible for capitalization;
(2) The borrowing costs has already incurred; and
(3) The acquisition and construction or production activities which are necessary to prepare the
asset for its intended use or sale have already started.
When the qualified asset under acquisition and construction or production is ready for theintended use or sale, the capitalization of the borrowing costs shall be ceased.
3. The suspension of capitalization of borrowing costs
Where the acquisition and construction or production of a qualified asset is interruptedabnormally and the interruption period lasts for more than 3 months, the capitalization of theborrowing costs shall be suspended. If the interruption is a necessary step for making thequalified asset under acquisition and construction or production ready for the intended use or
sale, the capitalization of the borrowing costs shall continue. The borrowing costs incurredduring such period shall be recognized as expenses, and shall be recorded into the profits andlosses of the current period, till the acquisition and construction or production of the assetrestarts.
4. Method of calculating the capitalization rate and capitalized amount of borrowing costs
For interest expense (minus the income of interests earned on the unused borrowing loans as adeposit in the bank or investment income earned on the loan as a temporary investment) andthe ancillary expense incurred to a specifically borrowed loan, those incurred before a qualifiedasset under acquisition, construction or production is ready for the intended use or sale shallbe capitalized at the incurred amount when they are incurred, and shall be recorded into thecosts of the asset eligible for capitalization.
The Company shall calculate and determine the to-be-capitalized amount of interests on thegeneral borrowing by multiplying the weighted average asset disbursement of the part of theaccumulative asset disbursements minus the general borrowing by the capitalization rate of thegeneral borrowing used. The capitalization rate shall be calculated and determined in light ofthe weighted average interest rate of the general borrowing.
During the capitalization period, the exchange difference between the principal and interest ofthe foreign currency special loan is capitalized and included in the cost of the assets that meetthe capitalization conditions. Exchange differences arising from the principal and interest offoreign currency borrowings other than foreign currency special borrowings are included inthe current profits and losses.
(17) Intangible Assets
1. Measurement of Intangible Assets
(1) Initial measurement is based on cost upon acquisition
The cost of an intangible asset on acquisition include the purchase price, relevant taxes andother necessary disbursements which may be directly attributable to bringing the intangibleasset to the conditions for the expected purpose.
(2) Subsequent Measurement
The Company shall analyze and judge the beneficial period of intangible assets uponacquisition.
Intangible assets with finite beneficial period shall be amortized under the straight-line methodduring the period when the intangible asset can bring economic benefits to the enterprise. If it
is unable to estimate the beneficial period of the intangible asset, it shall be regarded as anintangible asset with uncertain service life and shall not be amortized.
2. Estimated useful lives of intangible assets with limited useful lives
| Item | Estimated useful life | Criteria |
| Land use right | 50 years | Land use right certificate |
| Software | 10 years | Estimated useful life |
3. Classification criteria for internal research phase and development phase
The expenditures for its internal research and development projects of an enterprise shall beclassified into research expenditures and development expenditures.
Research phase refers to the phase of creative and planned investigation to acquire and studyto acquire and understand new scientific or technological knowledge.
Development phase refers to the phase during which the result of research phase or otherknowledge is applied into certain projects or designs for the manufacturing of new orsubstantially improved material, device and product before commercial manufacturing and use.
4. Criteria of capitalization of development phase expenditures
Expenditures incurred during the research phase are recognized in profit or loss for the periodwhen incurred. Expenditures incurred during the research phase shall be capitalized if theymeet the following conditions at the same time. If the expenditures incurred during thedevelopment phase do not meet the following conditions, they shall be included in the currentperiod's profit and loss.
(1) It is technically feasible to complete the intangible asset so that it can be used or sold.
(2) The Company intent to complete the intangible asset and use or sell it.
(3) The way intangible assets generate economic benefits, including being able to prove that
there is a market for the products produced by using the intangible assets or the intangibleassets themselves has market. If the intangible assets will be used internally, it should beable to prove that the intangible assets will be useful.
(4) The company has sufficient technical, financial and other resources to complete the
development of the intangible asset and is able to use or sell the intangible asset.
(5) The expenditure attributable to the development phase of the intangible asset can be
measured reliably.If it is impossible to distinguish between expenditures in the research phase and expendituresin the development phase, all research and development expenditures incurred shall beincluded in the current period's profit and loss.
(18) Impairment of long-term assets
For long-term assets such as long-term equity investments, investment property under the costmodel, fixed assets, construction in progress, right-of-use assets, intangible assets with limiteduseful lives and oil gas assets etc., the Company shall perform impairment tests at the periodend if there is clear indication of impairment. If the recoverable amounts of long-term assetsare less than their carrying amounts, the carrying amounts of the assets shall be written downto their recoverable amounts. The write-downs are recognized as impairment losses andcharged to current profit and loss. The recoverable amounts of long-term assets are the higherof their fair values less costs to sell and the present values of the future cash flows expected tobe derived from the assets. The Company shall estimate its recoverable amount on an individualbasis. Where it is difficult to do so, it shall determine the recoverable amount of the assets onthe basis of the asset group to which the asset belongs. The term "assets group” refers to aminimum combination of assets by which the cash flows could be generated independently
The goodwill, intangible assets with uncertain useful life and intangible assets not meeting theexpected condition for use shall be subject to an impairment test at least at the end of each year.
When the Company makes an impairment test of assets, it shall, as of the purchasing day,apportion the carrying value of the business reputation formed by merger of enterprises to therelevant asset groups by a reasonable method. Where it is difficult to do so, it shall beapportioned to the relevant combinations of asset groups. A related group of assets orcombination of asset groups is an asset group or combination of asset groups that can benefitfrom the synergy effect of a business combination.
When making an impairment test on the relevant asset groups or combination of asset groupscontaining business reputation, if any evidence shows that the impairment of asset groups orcombinations of asset groups is possible, the Company shall first make an impairment test onthe asset groups or combinations of asset groups not containing business reputation, calculatethe recoverable amount, compare it with the relevant carrying value and recognize thecorresponding impairment loss. Then the Company shall make an impairment test of the assetgroups or combinations of asset groups containing business reputation, and compare thecarrying value of these asset groups or combinations of asset groups (including the carryingvalue of the business reputation apportioned thereto) with the recoverable amount. Where therecoverable amount of the relevant assets or combinations of the asset groups is lower than thecarrying value thereof, it shall recognize the impairment loss of the business reputation.
Impairment losses on long-term assets shall not be reversed in subsequent accounting periods
once recognized.
(19) Long-term deferred expense
The long-term deferred expense refers to the expenses incurred but shall be borne by currentand subsequent accounting period, which is more than one year.
The long-term deferred expense shall be amortized over its beneficiary period evenly
(20) Contract liability
When either party to a contract has performed, the Company shall present the contract in thestatement of financial position as a contract asset or a contract liability, depending on therelationship between the Company’s performance and the customer’s payment. If a customerpays consideration, or the Company has a right to an amount of consideration before theCompany transfers a good or service to the customer, the Company shall present the contractas a contract liability. Contract assets and contract liabilities under the same contract aredisclosed in net amount.
(21) Employee benefits
1. Accounting treatment for short employee benefit
The Company shall recognise, in the accounting period in which an employee provides service,actually occurred short-term employee benefits as a liability, with a corresponding charge tothe profit or loss or cost of an asset for the current period.
Payments made by an enterprise of social security contributions for employees, payments ofhousing funds, and union running costs employee education costs provided in accordance withrelevant requirements shall, in the accounting period in which employees provide services, becalculated according to prescribed bases and percentages in determining the amount ofemployee benefits.
The employee welfare expenses incurred by the company are included in the current profit andloss or related asset costs based on the actual amount when they actually occur. Among them,non-monetary benefits are measured at fair value.
2. Accounting treatment of post-employment benefits
(1) Defined contribution plan
The Company shall recognize, in the accounting period in which an employee providesservice, pension fund and unemployment fund for employees as a liability according to the
local government regulations. The amount shall be calculated according to local prescribedbases and percentages in determining the amount of employee benefits, with acorresponding charge to the profit or loss or cost of an asset for the current period. Inaddition, the Company also participates in the enterprise annuity plan/supplementarypension insurance fund approved by relevant state departments. The Company pays acertain proportion of the total salary of employees to the annuity plan/local social insuranceagency, and the corresponding expenses are included in the current profit and loss orrelated asset cost.
(2) Defined benefit plan
None
3. Accounting treatment of termination benefits
The Company shall recognize an employee benefits liability for termination benefits, with acorresponding charge to the profit or loss for the current period, at the earlier of the followingdates: when the Company cannot unilaterally withdraw the offer of termination benefitsbecause of an employment termination plan or a curtailment proposal; or when the Companyrecognizes costs or expenses related to a restructuring that involves the payment of terminationbenefits.
(22) Estimated liabilities
The obligation pertinent to a contingency shall be recognized as an estimated liability whenthe following conditions are satisfied simultaneously:
(1) That obligation is a current obligation of the enterprise;
(2) It is likely to cause any economic benefit to flow out of the enterprise as a result of
performance of the obligation; and
(3) The amount of the obligation can be measured in a reliable way.
The estimated debts shall be initially measured in accordance with the best estimate of thenecessary expenses for the performance of the current obligation.
To determine the best estimate, an enterprise shall take into full consideration of the risks,uncertainty, time value of money, and other factors pertinent to the Contingencies. If the timevalue of money is of great significance, the best estimate shall be determined after discountingthe relevant future outflow of cash.
If there is a continuous range for the necessary expenses and if all the outcomes within thisrange are equally likely to occur, the best estimate shall be determined in accordance with theaverage estimate within the range.
If there is not a sequent range for the necessary expenses and if the outcomes within this rangeare not equally likely to occur, the best estimate shall be determined as follows:
(1) If the Contingencies concern a single item, it shall be determined in the light of the most
likely outcome.
(2) If the Contingencies concern two or more items, the best estimate shall be calculated and
determined in accordance with all possible outcomes and the relevant probabilities.
When all or some of the expenses necessary for the liquidation of an estimated debts of anenterprise is expected to be compensated by a third party, the compensation shall be separatelyrecognized as an asset only when it is virtually certain that the reimbursement will be obtained.The amount recognized for the reimbursement shall not exceed the book value of the estimateddebts.
The company reviews the book value of the estimated liabilities on the balance sheet date. Ifthere is conclusive evidence that the book value does not reflect the current best estimate, thebook value will be adjusted according to the current best estimate.
(23) Revenue
(1) The general principle of revenue recognition and measurement
The company shall recognise revenue when (or as) the company satisfies a performanceobligation when (or as) the customer obtains control of a promised good or service. Control ofa promised good or service refers to the ability to direct the use of, and obtain substantially allof the remaining benefits from it.
If the contract contains two or more performance obligations, the company shall allocate thetransaction price to each individual performance obligation based on the relative proportion ofthe stand-alone selling price of the goods or services promised by each individual performanceobligation on the date of the contract. The company measures revenue based on the transactionprice allocated to each individual performance obligation.
The transaction price is the amount of consideration to which the company expects to beentitled in exchange for transferring promised goods or services to a customer, excludingamounts collected on behalf of third parties or amounts expected to be returned to customers.The company shall consider the terms of the contract and its customary business practices todetermine the transaction price. When determining the transaction price, the company shallconsider the effects of all of the following: variable consideration, the existence of a significantfinancing component in the contract, non-cash consideration, and consideration payable to acustomer. The company determines the transaction price that includes variable consideration
at an amount that does not exceed the amount of accumulated recognized revenue that isunlikely to be materially reversed when the relevant uncertainty is eliminated. If there is asignificant financing component in the contract, the company shall recognise revenue at anamount that reflects the price that a customer would have paid for the promised goods orservices if the customer had paid cash for those goods or services when (or as) they transfer tothe customer, and use the effective interest method to amortize the difference between thetransaction price and the contract consideration during the contract period.
The company transfers control of a good or service over time and, therefore, satisfies aperformance obligation and recognises revenue over time, if one of the following criteria ismet. Otherwise, the company satisfies the performance obligation at a point in time.(a) the customer simultaneously receives and consumes the benefits provided by the company’sperformance as the company performs;(b) the company’s performance creates or enhances an asset that the customer controls as theasset is created or enhanced; or(c) the company’s performance does not create an asset with an alternative use to the companyand the company has an enforceable right to payment for performance completed to date.The company shall recognise revenue over time by measuring the progress towards completesatisfaction of that performance obligation, except where the performance progress cannot bereasonably determined. The company considers the nature of the goods or services and adoptsthe output method or the input method to determine the progress of performance. Where theperformance progress cannot be reasonable determined, but the company expects to recoverthe costs incurred in satisfying the performance obligation, the company shall recogniserevenue only to the extent of the costs incurred until such time that it can reasonably measurethe outcome of the performance obligation.For performance obligations satisfied at a certain point in time, the company shall recognisesrevenue at the point when the customer obtains control of the relevant goods or services. Todetermine the point in time at which a customer obtains control of a promised goods or services,the company shall consider requirements as follows:
(a) The company has a present right to payment for the promised goods or services and thecustomer is presently obliged to pay for that;(b) The company has transferred the legal title of the goods to the customer, that is, thecustomer has the legal title to the goods;(c) The company has transferred physical possession of the goods to the customer, that is, thecustomer has taken possession of the goods;(d) The company has transferred the significant risks and rewards of ownership of the goodsto the customer, that is, the customer has the significant risks and rewards of ownership of thegoods;
(e) The customer has accepted the promised goods or services.
The Company determines whether it is the principal or agent when engaging in a transactionbased on whether it has control over the goods or services before transferring them to thecustomer. If the Company is able to control the goods or services before transferring them tothe customer, the Company is the principal and recognizes revenue based on the totalconsideration received or receivable; otherwise, the Company is the agent and recognizesrevenue based on the amount of commissions or fees it expects to be entitled to receive.
(2) The specific criteria of revenue recognition and measurement
Commodity sales contracts between companies and customers usually only includeperformance obligations for the transfer of steel and other commodities. This type ofperformance obligation is a performance obligation performed at a certain point in time. TheCompany recognizes revenue when the customer obtains control of the relevant goods orservices. When judging whether the customer has obtained control of goods or services, thecompany considers the following signs:
The company obtains the current right of collection of receivables, the legal ownership of thegoods is transferred to the customer, the physical assets of the goods are transferred to thecustomer, the company transfers the main risks and rewards of the ownership of the goods tothe customer, and the customer has accepted the goods.
(24) Contract costs
Contract costs include costs to fulfill a contract and incremental costs of obtaining a contract.
If the costs incurred in fulfilling a contract with a customer are not within the scope of anotherStandard, for example, Inventories, Property, Plant and Equipment or Intangible Assets, thecompany shall recognise an asset from the costs incurred to fulfil a contract only if those costsmeet all of the following criteria:
(a) the costs relate directly to a contract or to an expected contract;(b) the costs generate or enhance resources of the Company that will be used in satisfyingperformance obligations in the future; and(c) the costs are expected to be recovered.The company shall recognise as an asset the incremental costs of obtaining a contract with acustomer if the company expects to recover those costs.
An asset recognised in accordance with contract costs shall be amortised in consistent with thetransfer to the customer of the goods or services to which the asset relates. The company may
recognise the incremental costs of obtaining a contract as an expense when incurred if theamortisation period of the asset is one year or less.
The company shall recognise an impairment loss in profit or loss to the extent that the carryingamount of an asset related to contract assets exceeds:
(a) the remaining amount of consideration that the company expects to receive in exchange forthe goods or services to which the asset relates; less(b) the costs that relate directly to providing those goods or services and that have not beenrecognised as expenses.
The company shall recognise in profit or loss a reversal of some or all of an impairment losspreviously recognised when the impairment conditions no longer exist or have improved. Theincreased carrying amount of the asset shall not exceed the carrying amount that if noimpairment loss had been recognised previously.
(25) Government Subsidies
1. Types
A government subsidy means the monetary or non-monetary assets obtained free of chargeby the Company from the government. Government subsidies consist of the governmentsubsidies pertinent to assets and government subsidies pertinent to income.
Government subsidies related to assets are government subsidies whose primarycondition is that an entity qualifying for them should purchase, construct or otherwiseacquire long-term assets. The government subsidies related to incomes refers togovernment subsidies other than those related to assets.
The standard of the Company recognizing the government subsidies related to assets is:
an entity qualifying for them should purchase, construct or otherwise acquire long-termassets.
The standard of the Company recognizing the government subsidies related to income is:
In addition to government subsidies related to assets, government subsidies that have beenclearly targeted for subsidies.
For government documents that do not specify the object of the grant, the Companyclassifies the government subsidy as asset-related or income-related based on thefollowing judgment: if it can form a long-term asset, the portion of the governmentsubsidy that corresponds to the value of the asset is treated as an asset related governmentsubsidy and the rest as an income-related government subsidy; if it is difficult todistinguish, the government subsidy as a whole is treated as an income related governmentsubsidy.
2. Recognition
Government subsidies are recognized when the Company is able to meet the conditionsattached to them and is able to receive them.
3. Accounting treatment
Government subsidies related to assets shall be recognized by deducting the subsidies atthe caring amount of the assets or recognized as deferred income. Subsidies thatrecognized as deferred income shall be recognized in profit or loss on a systematic basisover the periods during the useful lives of the relevant assets (Subsidies related to dailyactivities should be recorded in Other Income. Subsidies that unrelated to daily activitiesshould be recorded in Non-operating Income).
The government subsidies related to incomes to compensate future expenses, shall berecognized as deferred income and transferred to current profit or loss (Subsidies relatedto daily activities should be recorded in Other Income. Subsidies that unrelated to dailyactivities should be recorded in Non-operating Income) in the period during which theexpenses compensation is recognized or deduct relevant cost or loss. Governmentsubsidies to compensate expenses or losses already incurred shall be recognized in currentprofit and loss (Subsidies related to daily activities should be recorded in Other Income.Subsidies unrelated to daily activities should be recorded in Non-operating Income) ordeduct relevant cost or loss.
The policy discount loans obtained by the company are divided into the following twosituations and are separately accounted for:
(a) The government allocates discounted funds to the loan bank, and the loan bankprovides loans to the company at a policy preferential interest rate. The preferentialinterest rate is used to calculate the relevant borrowing costs.(b) If the government directly allocates the discounted funds to the company, the companywill offset the relevant borrowing costs with the corresponding discounts, directlyaccounted for the current profit or loss or recognized as deferred income.
(26) Deferred tax assets and deferred tax liabilities
Income tax includes current income tax and deferred income tax. Except for income taxarising from business combinations and transactions or events directly recorded in owners'equity (including other comprehensive income), the Company records current income tax anddeferred income tax in current profit or loss.Deferred tax assets and deferred tax liabilities are calculated based on the difference betweenthe tax bases of assets and liabilities and their carrying amounts (temporary differences).Income tax includes current income tax and deferred income tax. Except for income taxarising from business mergers and transactions or events that are directly included in owner'sequity (including other comprehensive income), the company will include current income taxand deferred income tax in current profit and loss.
Deferred income tax assets and deferred income tax liabilities are calculated and confirmedbased on the difference (temporary difference) between the tax base of assets and liabilitiesand their book value.
An enterprise shall recognize the deferred income tax assets arising from a deductibletemporary difference to the extent of the amount of the taxable income which it is most likelyto be obtained and which can be deducted from the deductible temporary difference. As forany deductible loss or tax deduction that can be carried forward to the next year, thecorresponding deferred income tax assets shall be determined to the extent that the amount offuture taxable income to be offset by the deductible loss or tax deduction to be likely obtained.
All taxable temporary differences shall be recognized as deferred tax liabilities with certainlimited exceptions.
Exceptions when deferred tax assets and deferred tax liabilities are not recognized include:
- Initial recognition of goodwill;- A transaction or event that is neither a business combination nor affects accounting profitand taxable income (or deductible loss) when it occurs, and the assets and liabilitiesinitially recognized do not result in equal taxable temporary differences and deductibletemporary differences.For taxable temporary differences related to investments in subsidiaries, associates and jointventures, deferred income tax liabilities are recognized, unless the company can control thetiming of the reversal of the temporary differences and the temporary differences are likelynot to be transferred back in the foreseeable future. For deductible temporary differencesrelated to investments in subsidiaries, associates and joint ventures, when the temporarydifferences are likely to be reversed in the foreseeable future and are likely to be used todeduct the taxable income of deductible temporary differences in the future, income tax assetsare recognized.On the balance sheet date, deferred income tax assets and deferred income tax liabilities aremeasured at the applicable tax rate during the period when the relevant assets are expected tobe recovered or the relevant liabilities are expected to be recovered in accordance with theprovisions of the tax law.On the balance sheet date, the company reviews the book value of deferred income tax assets.If it is probable that sufficient taxable income cannot be obtained in the future to offset thebenefits of deferred income tax assets, the book value of the deferred income tax assets shallbe written down. When it is possible to obtain sufficient taxable income, the reduced amountshall be reversed.When the Company has the statutory right to offset and intend to offset or obtain assets andpay off liabilities at the same time, the current income tax assets and current income taxliabilities are presented at the net amount after offsetting.
An entity shall offset deferred tax assets and deferred tax liabilities if, and only if: (a) theentity has a legally enforceable right to set off current tax assets against current tax liabilities;and (b) deferred income tax assets and deferred income tax liabilities are related to incometaxes levied by the same tax collection and administration department on the same taxpayeror to different taxpayers, but in each future period of significant deferred income tax assetsand liabilities reversal, the taxpayers involved intend to settle the current income tax assetsand liabilities on a net basis or to acquire assets and settle liabilities at the same time.
(27) Leases
Lease refers to a contract in which the lessor transfers the right to use the asset to the lesseewithin a certain period of time to obtain consideration.On the starting date of the contract, the company assesses whether the contract is a lease orcontains a lease. If the contract conveys the right to control the use of an identified asset for aperiod of time in exchange for consideration, the contract is, or contains, a lease.For a contract that contains a lease component and one or more additional lease or non-leasecomponents, a lease shall allocate the consideration in the contract to each lease componenton the basis of the relative stand-alone price of the lease component and the aggregate stand-
alone price of the non-lease components.
1. The company as the lessee
(1) Right-of-use assets
On the start date of the lease term, the company recognizes the right-of-use asset for leasesother than short-term leases and low-value asset leases. Right-of-use assets are initiallymeasured at cost.This cost includes:
? The initial measurement amount of the lease liability;
? If there is a lease incentive for the lease payment paid on or before the start of the lease term,
the relevant amount of the lease incentive already enjoyed shall be deducted;
? The initial direct expenses incurred by the company;
? The company expects to incur costs for dismantling and removing leased assets, restoring
the site where leased assets are located, or restoring leased assets to the state agreed upon inthe lease terms, but does not include the costs incurred for the production of inventory.
The company uses the straight-line method to depreciate the right-of-use assets. If it can bereasonably determined that the ownership of the leased asset will be obtained at the end of thelease term, the company shall depreciate the leased asset during the remaining useful life;otherwise, the leased asset will be depreciated during the shorter period of the lease term andthe remaining useful life of the leased asset .The company determines whether the right-of-use asset has been impaired in accordance withthe principles described in "3. (18) Long-term asset impairment" in this note, and conductsaccounting treatment for the identified impairment loss.
(2) Lease liabilities
At the beginning of the lease term, the company recognizes lease liabilities for leases otherthan short-term leases and leases of low-value assets. Lease liabilities are initially measuredbased on the present value of the payments that are not paid at that date. Lease paymentsinclude:
1) Fixed payment (including in-substance fixed payment), less any lease incentives receivable;
2) Variable lease payments that depend on an index or a ratio;
3) Amounts expected to be payable by the lease under residual value guarantees;
4) The exercise price of the purchase option if the lease is reasonably certain to exercise that
option;
5) Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising
an option to terminate the lease;The company uses the interest rate implicit in the lease as the discount rate, but if the interestrate implicit in the lease cannot be reasonably determined, the company's incrementalborrowing interest rate is used as the discount rate.The company calculates the interest expense of the lease liability during each period of thelease term according to a fixed periodic interest rate, and includes it in the current profit andloss or the cost of related assets.Variable lease payments that are not included in the measurement of lease liabilities areincluded in the current profit and loss or the cost of related assets when they occur.After the start of the lease term, if the following circumstances occur, the company re-measuresthe lease liability and adjusts the corresponding right-of-use asset. If the book value of theright-of-use asset has been reduced to zero, but the lease liability still needs to be furtherreduced, the difference shall be included in the current profit and loss:
? When the evaluation result or actual exercise situation of the purchase option, renewal optionor termination option changes, the company remeasures the lease liability based on the presentvalue calculated by the lease payment after the change and the revised discount rate;? When the actual fixed payment changes, the expected payable amount of the guaranteeresidual value changes, or the index or ratio used to determine the lease payment changes, thecompany calculates the present value based on the changed lease payment and the originaldiscount rate to remeasure the lease liability. However, if changes in lease payments originatefrom changes in floating interest rates, the revised discount rate is used to calculate the presentvalue.
(3) Short-term leases and low-value asset leases
The company chooses not to recognize right-of-use assets and lease liabilities for short-termleases and low-value asset leases, and calculates the relevant lease payments in the currentprofit and loss or related asset costs on a straight-line basis during each period of the lease term.Short-term lease refers to a lease that does not include purchase options for a lease period notexceeding 12 months at the beginning of the lease period. Low-value asset leasing refers to alease with a lower value when a single leased asset is a new asset. If the company subleases orexpects to sublease the leased assets, the original lease is not a low-value asset lease.
(4) Lease modifications
The lease shall account for a lease modification as a separate lease if both:
? The modification increases the scope of the lease by adding the right to use one or more
underlying assets; and
? the consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope and any appropriate adjustment to that stand-alone price toreflect the circumstances of the particular contract.
For a lease modification that is not accounted for as a separate lease, at the effective date of thelease modification a lessee shall allocate the consideration in the modified contract, determinethe lease term of the modified lease and remeasure the lease liabilities by discounting therevised lease payments using a revised discount rate.For a lease modification that is not accounted for as a separate lease, the lessee shall accountfor the remeasurement of the lease liabilities by decreasing the carrying amount of the right-of-use assets to reflect the partial or full termination of the lease for lease modifications thatdecrease the scope of the lease. The lessee shall recognize in profit or loss any gain or lossrelating to the partial or full termination of the lease; or by making a corresponding adjustmentto the right-of-asset for all other lease modifications.
2. The company as the lessor
On the commencement date of the lease, the company divides the lease into finance lease andoperating lease. Finance lease refers to a lease in which almost all the risks and rewards relatedto the ownership of the leased asset are transferred regardless of whether the ownership isultimately transferred. Operating leases refer to leases other than financial leases. When thecompany acts as a sublease lessor, it classifies subleases based on the right-of-use assetsgenerated from the original lease.
(1) Accounting treatment of operating leases
The lease receipts of operating leases are recognized as rental income in each period of thelease term according to the straight-line method. The company capitalizes the initial directcosts incurred related to operating leases, and allocates them to the current profit and loss onthe same basis as the recognition of rental income during the lease term. Variable leasepayments that are not included in the lease receipts are included in the current profit and losswhen they actually occur.
(2) Accounting treatment of finance leasing
On the start date of the lease, the company recognizes the finance lease receivables for thefinance lease and terminates the recognition of the finance lease assets. When the companyinitially measures the finance lease receivables, the net lease investment is taken as the entry
value of the financial lease receivables. The net lease investment is the sum of the unguaranteedresidual value and the present value of the lease payment not yet received at the beginning ofthe lease term, discounted at the interest rate implicit in the lease.The company calculates and recognizes the interest income for each period of the lease termbased on a fixed periodic interest rate. The derecognition and impairment of finance leasereceivables shall be accounted for in accordance with "3. (10) Financial Instruments" in thisNote.Variable lease payments that are not included in the measurement of the net lease investmentare included in the current profit or loss when they actually occur.A lessor shall account for a modification to a finance lease as a separate lease if both:
? The modification increases the scope of the lease by adding the right to use one or moreunderlying assets;? The consideration for the lease increases by an amount commensurate with the stand-aloneprice for the increase in scope and any appropriate adjustments to that stand-alone price toreflect the circumstances of the particular contract.For a modification to a finance lease that is not accounted for as a separate lease, a lessor shallaccount for the modification as follows:
? If the lease would have been classified as an operating lease had the modification been ineffect at the inception date, the lessor shall account for the lease modification as a new leasefrom the effective date of the modification; and measure the carrying amount of the underlyingassets as the net investment in the lease immediately before the effective date of the leasemodification.? If the change takes effect on the lease start date, the lease will be classified as a financiallease, and the company will perform accounting treatment in accordance with the policy of “3.
(10) Financial Instruments” in this Note on the modification or re-negotiation of the contract.
3. Sale and leaseback transaction
The company evaluates and determines whether the asset transfer in the sale and leasebacktransaction is a sale in accordance with the principles described in "3. (23) Revenue" of thisNote.
(1) As the lessee
If the transfer of an asset in the sale and leaseback transaction is a sale, the company as thelessee measures the right-of-use asset arising from the leaseback at the proportion of theprevious carrying amount of the asset that relates to the right-of-use retained by the lessee and
recognize only the amount of any gain or loss that relates to the rights transferred to the lessor.For details on the subsequent measurement of right-of-use assets and lease liabilities and leasechanges after the commencement date of the lease term, please refer to Note III. (27) Leases 1.The Company as Lessee. When subsequently measuring the lease liabilities arising from a saleand leaseback, the Company determines the lease payments or the modified lease payments ina manner that does not result in the recognition of gains or losses related to the right of useacquired through the leaseback.If the asset transfer in the sale and leaseback transaction does not belong to the sale, thecompany as the lessee continues to recognize the transferred assets and at the same timerecognize a financial liability equal to the transfer proceeds. For the accounting treatment offinancial liabilities, please refer to "3. (10) Financial Instruments" in this note.
(2) As a lessor
If the asset transfer in the sale and leaseback transaction is a sale, the company acts as the lessorto account for the purchase of the asset, and the asset lease is accounted for in accordance withthe aforementioned "2. The company as the lessor" policy; in the sale and leaseback transactionIf the transfer of assets is not a sale, the company as the lessor does not recognize the transferredassets, but recognizes a financial asset equal to the transfer proceeds. For the accountingtreatment of financial assets, please refer to "3. (10) Financial Instruments" in this note.
(28) Debt restructuring
1. The company as the creditor
The Company terminates the recognition of claims when the contractual right to collect cashflows from the claims terminates. If debt is restructured by using assets to pay off debts or byconverting debts into equity instruments, the company will recognize the relevant assets whenthey meet their definition and recognition conditions.If debt restructuring is carried out by repaying debts with assets, the transferred non-financialassets shall be measured at cost at initial recognition. The cost of inventories includes the fairvalue of waived claims and other costs directly attributable to the asset incurred in bringing theasset to its present location and condition, such as taxes, transportation, handling charges,insurance, etc. The cost of an investment in an associate or joint venture includes the fair valueof waived claims and other costs such as taxes directly attributable to the asset. The cost ofinvestment property includes the fair value of claims relinquished and other costs such as taxesdirectly attributable to the asset. The cost of fixed assets includes the fair value of waivedclaims and other costs directly attributable to the asset incurred before the asset is ready for itsintended use, such as taxes, transportation costs, handling charges, installation costs,
professional service fees, etc. The cost of biological assets includes the fair value of waivedclaims and other costs directly attributable to the asset, such as taxes, transportation costs,insurance premiums, etc. The cost of an intangible asset includes the fair value of claimswaived and other costs, such as taxes, that are directly attributable to bringing the asset to itsintended use. If a debt restructuring by converting debt into equity instruments results in thecreditor converting its claims into equity investments in associates or joint ventures, theCompany measures its initial investment cost at the fair value of the claims waived and othercosts such as taxes directly attributable to the asset. The difference between the fair value andthe book value of the waived claims is included in the current profit and loss. If the debtrestructuring is carried out by modifying other terms, the Company shall recognize andmeasure the restructured claims in accordance with "III. (10) Financial Instruments" of thisNote.When multiple assets are used to settle debts or for debt restructuring, the Company shall firstrecognize and measure the financial assets acquired and the restructured claims in accordancewith Note III. (10) Financial Instruments. It shall then allocate the net amount of the fair valueof the waived claims after deducting the recognized amounts of the acquired financial assetsand the restructured claims in accordance with the fair value ratio of the various assets otherthan the acquired financial assets, and on this basis, determine the cost of each asset separatelyin accordance with the above method. The difference between the fair value and the carryingamount of the waived claim should be included in the current profit and loss.
2. The company as the debtor
The Company derecognizes a debt when the present obligation for the debt is discharged.If debt restructuring is carried out by settling debts with assets, the Company shall terminatethe recognition when the relevant assets and the debts settled meet the conditions fortermination of recognition, and the difference between the book value of the debts settled andthe book value of the transferred assets shall be included in the current profit and loss.In case of debt restructuring by converting debt into equity instruments, the Company shallderecognize the debts paid when they meet the derecognition conditions. Equity instrumentshall be measured at fair value at initial recognition. If the fair value of an equity instrumentcannot be measured reliably, it is measured at the fair value of the debt settled. The differencebetween the carrying amount of the debt settled and the amount recognized as an equityinstrument should be recognized in the current period's profit or loss.If debt restructuring is carried out by modifying other terms, the Company shall recognize and
measure the restructured debt in accordance with “III. (10) Financial Instruments” of this Note.If multiple assets are used to repay debts or a combination is used to restructure debt, thecompany shall confirm and measure equity instruments and restructured debts in accordancewith the aforementioned methods. The difference between the carrying amount of the debtsettled and the sum of the carrying amount of the transferred assets and the recognized amountof the equity instruments and restructured debts is included in the current period's profit andloss.
(29) Major accounting estimates and judgments
When preparing financial statements, the Company's management needs to use estimates andassumptions, which will affect the application of accounting policies and the amount of assets,liabilities, income and expenses. Actual conditions may differ from these estimates. Themanagement of the company continuously evaluates the judgment of key assumptions anduncertainties involved in the estimation, and the impact of changes in accounting estimateswill be recognized in the current and future periods.
The main uncertainties in the estimated amount are as follows:
1. Measurement of expected credit losses
The company calculates the expected credit loss through the default risk exposure and theexpected credit loss rate, and determines the expected credit loss rate based on the defaultprobability and the default loss rate. When determining the expected credit loss rate, thecompany uses internal historical credit loss experience and other data, and adjusts thehistorical data in combination with current conditions and forward-looking information.When considering forward-looking information, the indicators used by the Company includethe risk of economic downturn, the expected increase in unemployment rate, changes in theexternal market environment, technological environment and customer conditions. TheCompany regularly monitors and reviews assumptions related to the calculation of expectedcredit losses.
2. Inventory Impairment
As mentioned in note 3 (11) Inventory under “3 Significant accounting policies andaccounting estimates”, the Company regularly estimates the net realizable value of theinventory, and recognizes the difference in inventory cost higher than the net realizable value.When estimating the net realizable value of inventory, the Company considers the purposeof holding the inventory and uses the available information as the basis for estimation,
including the market price of the inventory and the Company's past operating costs. Theactual selling price, completion cost, sales expenses and taxes of the inventory may changeaccording to changes in market sales conditions, production technology, or the actual use ofthe inventory. Therefore, the amount of inventory depreciation reserve may change accordingto the above reasons. Adjustments to the inventory impairment will affect the current profitand loss.
3. Impairment of other assets except inventory and financial assets
As mentioned in note 3 (18) Long-term Asset Impairment, the company performs animpairment assessment on assets other than inventory and financial assets on the balancesheet date to determine whether the recoverable amount of the asset has fallen to a lowerlevel than its book value. If the situation shows that the book value of the long-term assetsmay not be fully recovered, the relevant assets will be deemed to be impaired and theimpairment loss will be recognized accordingly.
The recoverable amount is the higher of the net value of the fair value of the asset (or assetgroup) minus the disposal expenses and the present value of the asset (or asset group) 'sexpected future cash flow. Because the Company cannot reliably obtain the public marketprice of assets (or asset groups), and cannot reliably and accurately estimate the fair value ofassets. Therefore, the Company regards the present value of the expected future cash flow asthe recoverable amount. When estimating the present value of future cash flows, it isnecessary to make a significant judgment on the output, selling price, related operating costsof the products produced by the asset (or asset group), and the discount rate used incalculating the present value. The Company will use all available relevant information whenestimating the recoverable amount, including the prediction of output, selling price andrelated operating costs based on reasonable and supportable assumptions.
4. Depreciation and amortization of assets such as fixed assets and intangible assets
As described in note 3 (14) Fixed Assets and note 3 (17) Intangible Assets, the company shallaccrue depreciation for the fixed assets and amortization for intangible assets within theuseful life after considering their residual value. The company regularly reviews the usefullife of related assets to determine the amount of depreciation and amortization expenses tobe included in each reporting period. The useful life of assets is determined by the companybased on past experience with similar assets and in combination with anticipatedtechnological changes. If the previous estimates change significantly, the depreciation andamortization expenses will be adjusted in the future.
5. Deferred tax assets
When it is estimated that sufficient taxable income can be obtained in the future to use theunrecovered tax losses and deductible temporary differences, the relevant deferred tax assetsare calculated and confirmed on the basis of the applicable income tax rate during the periodwhen the asset is expected to be recovered and the amount of taxable income is limited todeductible tax losses and deductible temporary differences likely to be obtained by theCompany. The Company needs to use judgment to estimate the time and amount of futuretaxable income, and make reasonable estimates and judgments on the future applicableincome tax rate according to the current tax policy and other related policies to determine thedeferred tax assets that should be recognized. If the time and amount of profits actuallygenerated in the future period or the actual applicable income tax rate are different from themanagement's estimate, the difference will have an impact on the amount of deferred taxassets.
(30) Criteria of Materiality
| Items | Materiality Criteria |
Significant
The company considers accounts receivables exceeding RMB 5 million as
| Receivables | significant accounts receivables. |
| Significant Accounts Payables |
The company considers accounts payables exceeding RMB 5 million as
| significant accounts payables. | |
| Significant Other Payables |
The company considers other payables exceeding RMB 5 million as
Significant
| significant other payables. | |
| Construction in |
Progress
The company regards the projects with the highest amount transferred tofixed assets or the top 10 projects with the final balance of the current periodand the amount exceeding RMB 50 million as significant construction in
Significant JointVentures or Associated
| progress. | |
| Companies |
The company considers joint ventures or associated companies with anending balance of more than RMB 100 million as important joint ventures or
SignificantSubsidiaries
Subsidiaries whose total assets/total revenue/total profit exceed 15% of thegroup's total assets/total revenue/total profit are considered as significant
| associated companies. |
| subsidiaries. |
(31) Change of significant accounting policy and accounting estimate
1. Change of major accounting policy during this reporting period
(4) Implementation of Interpretation of Enterprise Accounting Standards No. 17
The Ministry of Finance issued the "Interpretation of the Enterprise Accounting StandardsNo. 17 " (Accounting [2023] No. 21, hereinafter referred to as "Interpretation No. 17") onOctober 25, 2023.
D. Classification of current liabilities and non-current liabilitiesInterpretation No. 17 clarifies:
? If an enterprise does not have a substantive right to postpone the repayment of a liabilityfor more than one year after the balance sheet date on the balance sheet date, the liabilityshould be classified as a current liability.? For liabilities arising from an enterprise's loan arrangement, the enterprise's right topostpone the repayment of the liability for more than one year after the balance sheet datemay depend on whether the enterprise has complied with the conditions stipulated in the loanarrangement (hereinafter referred to as the contractual conditions). When judging whether ithas a substantive right to postpone the repayment of the debt, the enterprise should onlyconsider the contractual conditions that should be followed on or before the balance sheetdate, and should not consider the contractual conditions that should be followed by theenterprise after the balance sheet date.? Liability repayment for the purpose of classifying the liquidity of liabilities means that theenterprise discharges the liability by transferring cash, other economic resources (such asgoods or services) or the enterprise's own equity instruments to the counterparty. If the termsof a liability result in the enterprise settling the liability by delivering its own equityinstruments at the option of the counterparty, if the enterprise classifies the above option asan equity instrument and recognizes it separately as the equity component of a compoundfinancial instrument in accordance with the provisions of Accounting Standard forEnterprises No. 37 - Presentation of Financial Instruments, the term does not affect theliquidity classification of the liability.
This interpretation will be effective from January 1, 2024. The aforementioned regulationshave no significant impact on the Company's financial reports.
E. Disclosures about supplier financing arrangementsInterpretation No. 17 requires that when an enterprise makes a note disclosure, it shoulddisclose information related to supplier financing arrangements in a summary manner to helpusers of financial statements assess the impact of these arrangements on the liabilities, cashflows and liquidity risk exposure of the enterprise. The impact of supplier financingarrangements should also be considered when identifying and disclosing liquidity riskinformation. This disclosure provision only applies to supplier financing arrangements. Asupplier financing arrangement refers to a transaction with the following characteristics: one
or more financing providers provide funds to pay the amount owed by the enterprise to itssuppliers, and it is agreed that the enterprise will repay the financing providers on the day orafter its suppliers receive the payment in accordance with the terms and conditions of thearrangement. Compared with the original payment due date, the supplier financingarrangement extends the payment period of the enterprise or advances the collection periodof the enterprise's suppliers.
This interpretation will be effective from January 1, 2024. The aforementioned regulationshave no significant impact on the Company's financial reports.
F. Accounting treatment of sale and leaseback transactionsInterpretation No. 17 provides that when a lessee subsequently measures the lease liabilityarising from a sale and leaseback, the method of determining the lease payments or themodified lease payments shall not result in the recognition of gains or losses related to theright of use obtained from the leaseback. When an enterprise first implements this provision,it shall make retrospective adjustments to sale and leaseback transactions conducted after thefirst implementation date of Enterprise Accounting Standard No. 21 - Leases.
This interpretation will be effective from January 1, 2024. The aforementioned regulationshave no significant impact on the Company's financial reports.
(5) Implement the "Interim Provisions on Accounting Treatment of Enterprise Data
Resources"On August 1, 2023, the Ministry of Finance issued the "Interim Provisions on AccountingTreatment of Enterprise Data Resources" (Accounting [2023] No. 11), which applies to dataresources that are recognized as intangible assets or inventory and other assets in accordancewith the relevant provisions of the Enterprise Accounting Standards, as well as data resourcesthat are legally owned or controlled by the enterprise and are expected to bring economicbenefits to the enterprise, but do not meet the conditions for asset recognition and are notrecognized. The relevant accounting treatment, and put forward specific requirements for thedisclosure of data resources.This provision will take effect on January 1, 2024. Enterprises should adopt the prospectiveapplication method. Data resource-related expenses that have been expensed and included inprofit and loss before the implementation of this provision will no longer be adjusted. Theimplementation of this provision has no significant impact on the company's financialposition and operating results.
(6) Implement the provisions of "Interpretation No. 18 of the Enterprise Accounting
Standards on the accounting treatment of quality assurance that is not a singleperformance obligation"On December 6, 2024, the Ministry of Finance issued the “Interpretation No. 18 of theEnterprise Accounting Standards" (Accounting [2024] No. 24, hereinafter referred to as"Interpretation No. 18"), which will be implemented from the date of issuance, andenterprises are allowed to implement it in advance from the year of issuance.Interpretation No. 18 stipulates that when accounting for the estimated liabilities arising fromthe quality assurance of the guarantee type that does not belong to the single performanceobligation, it shall be debited to the "principal business cost" and "other business cost" andother accounts, and credited to the "estimated liabilities" account according to the relevantprovisions of the "Enterprise Accounting Standard No. 13-Contingencies" according to thedetermined estimated liabilities, and shall be listed in the "operating costs" in the incomestatement and the "other current liabilities", "non-current liabilities due within one year","estimated liabilities" and other items in the balance sheet.When the enterprise implements the content of this interpretation for the first time, if theoriginal provision of the quality assurance of the guarantee type is included in the "salesexpenses", it shall be retroactively adjusted in accordance with the change in accountingpolicies. The above provisions have no significant impact on the financial statements of theCompany.
2. Change of accounting estimate during the reporting period
There is no significant changes in accounting estimates during the reporting period.
6. Taxes
(1) Major type of taxes and corresponding tax rates
Tax Taxation Method Tax RateValue-added Tax (VAT)
services revenue in accordance with thetax laws after subtracting the deductible
| input VAT of the period |
6%, 9%, 13%City maintenance and construction tax
5%, 7%Enterprise income tax Based on taxable income
| Based on VAT and business tax actually paid | |
| See the table below for details |
Notes to taxpayers with different corporate income tax rates:
| Name of the taxpayers | Income tax rate (%) |
| Bengang Steel Plates Co., Ltd |
| Name of the taxpayers | Income tax rate (%) |
| Benxi Bengang Steel Sales Co., Ltd. |
| Bengang Posco Cold-rolled Sheet Co., Ltd. |
| Tianjin Bengang Steel & Iron Trading Co., Ltd. |
| Changchun Bengang Steel & Iron Sales Co., Ltd. |
| Yantai Bengang Steel & Iron Sales Co., Ltd. |
| Guangzhou Bengang Steel & Iron Trading Co., Ltd. |
| Dalian Benruitong Automobile Material Technology Co., Ltd. |
| Shenyang Bengang Metallurgical Science and Technology Co., Ltd. |
| North Hengda Logistics Co., Ltd |
(2) Tax Preference
1. The company has obtained the high-tech enterprise certificate, certificate number:
GR202421001555; valid from November 27, 2024 to November 27, 2027. The companypays corporate income tax at a reduced rate of 15%.
2. Benxi Posco Cold-Rolled Sheet Co., Ltd., the subsidiary of the Company has obtained the
High-tech Enterprise Certificate, certificate number: GR202321001624; valid fromDecember 20, 2023 to December 20, 2026. Benxi Steel Posco Cold-Rolled Sheet Co., Ltd.pays corporate income tax at a reduced tax rate of 15%.
3. On December 30, 2021, the Ministry of Finance and the State Administration of Taxation
issued the "Announcement on Improving the Value-Added Tax Policy for ComprehensiveUtilization of Resources" (Announcement No. 40 of the Ministry of Finance and the StateAdministration of Taxation in 2021). The announcement will take effect on March 1, 2022.The original "Notice of the Ministry of Finance and the State Administration of Taxation onIssuing the "Catalogue of Value-Added Tax Preferential Policies for ComprehensiveUtilization of Resources Products and Services" (Finance and Taxation [2015] No. 78) willbe abolished at the same time except for "technical standards and related conditions". Theelectricity and heat produced and sold by the Energy Development Branch of Benxi Iron andSteel Co., Ltd., a branch of the Company, are items listed in the "Catalogue of Value-AddedTax Preferential Terms for Comprehensive Resource Utilization Products and Services" andenjoy the value-added tax refund policy.
4. On September 3, 2023, the Ministry of Finance and the State Administration of Taxation
issued the "Announcement on the VAT Surcharge Deduction Policy for AdvancedManufacturing Enterprises" (Announcement No. 43 of the Ministry of Finance and the StateAdministration of Taxation in 2023). From January 1, 2023 to December 31, 2027, theannouncement allows advanced manufacturing enterprises to deduct the payable VAT by
adding 5% to the current deductible input tax. Benxi Posco Cold Rolled Sheet Co., Ltd., asubsidiary of our company, belongs to the advanced manufacturing industry and enjoys theVAT surplus deduction policy.
7. Notes to the consolidated financial statements
(1) Cash at bank and on hand
| Items | 2024/12/31 | 2023/12/31 |
| Cash on hand | ||
| Digital Currency | ||
| Cash at bank | 363,006,448.43 | 793,397,404.65 |
| Other monetary funds | 863,683,251.57 | 1,010,372,066.67 |
| Funds placed in a finance company account | 1,227,198,770.48 | 406,288,003.73 |
| Total | 2,453,888,470.48 | 2,210,057,475.05 |
| Including |
：
| Total amount deposited abroad |
Notes: As at 31 December 2024, bank acceptance deposit of RMB 863,683,251.57 was not recognized ascash and cash equivalents in the cash flow statement.
(2) Notes receivable
1. Notes receivable disclosed by category
Funds deposited overseas withrestrictions on repatriationItems
| Items | 2024/12/31 | 2023/12/31 |
| Bank acceptance bill | 241,529,481.42 | 368,249,725.20 |
| Commercial acceptance bill | 365,750,000.00 | 86,157,718.82 |
| Total | 607,279,481.42 | 454,407,444.02 |
2. Notes receivable disclosed by bad debt accrual method
Items
| 2024/12/31 | 2023/12/31 |
Carrying amount Provision for bad debts
Book value
Carrying amount
Provision for bad
Book valueAmount
| debts | ||
| Percentage (%) |
Amount
Bad debts
Amount
| ratio (%) | Percentage (%) |
Amount
Provision for bad
| Bad debts ratio (%) | ||
| debts individually |
Provision for baddebts based onportfolio of credit
607,279,481.42 100.00 607,279,481.42 454,407,444.02 100.00 454,407,444.02
| risk characteristics | ||||||||||
| Total | 607,279,481.42 | 100.00 | 607,279,481.42 | 454,407,444.02 | 100.00 | 454,407,444.02 |
Provision for bad debts based on portfolio of credit risk characteristicsPortfolio items:
Items
| 2024/12/31 | |||
| Notes receivable | Provision for bad debts | Bad debts ratio (%) | |
| Commercial acceptance bill | 365,750,000.00 | ||
| Bank acceptance bill | 241,529,481.42 | ||
| Total | 607,279,481.42 | ||
3. The pledged acceptance bill at the year-end
| Items | Notes receivable pledged at the end of period |
| Bank acceptance bill | 165,968,800.17 |
| Commercial acceptance bill | |
| Total | 165,968,800.17 |
4. The amount of notes receivable endorsed over or discounted but not yet matured at the year-end
Items
Amount terminated at the
Amount was not terminated
| end of the period | at the end of the period | |
| Bank acceptance bill | 3,181,702,865.55 | 75,575,335.70 |
| Commercial acceptance bill | 240,750,000.00 | |
| Total | 3,181,702,865.55 | 316,325,335.70 |
(3) Accounts receivable
1. Accounts receivable disclosed by aging
| Items | 2024/12/31 | 2023/12/31 |
| Within 1 year (inclusive) | 478,210,867.53 | 1,048,656,782.03 |
| 1-2 years (inclusive) | 5,786,445.58 | 322,945,580.33 |
| 2-3 years (inclusive) | 28,559,402.34 | 647,190.77 |
| 3-4 years (inclusive) | 557,413.41 | 5,690,114.98 |
| 4-5 years (inclusive) | 5,592,931.88 | 300,882,005.30 |
| over 5 years | 379,435,859.17 | 98,724,184.94 |
| Items | 2024/12/31 | 2023/12/31 |
| Subtotal | 898,142,919.91 | 1,777,545,858.35 |
| Less: Provision for bad debts | 396,658,838.18 | 448,198,723.86 |
| Total | 501,484,081.73 | 1,329,347,134.49 |
2. Accounts receivable disclosed by the bad debt accrual method
Items
| 2024/12/31 | 2023/12/31 | ||
| Gross carrying amount | Provision for bad debts | ||
Book value
| Gross carrying amount | Provision for bad debts |
Book valueAmount
Percentage(%)
Amount
Baddebtsratio
Amount
Percentage
(%)
Amount
Percentage
(%)Tested forimpairment
| (%) | ||
| individually |
334,963,124.35 37.30 334,963,124.35 100.00 353,419,325.80 19.88 353,419,325.80 100.00Tested forimpairment
563,179,795.56 62.70 61,695,713.83 10.95 501,484,081.73 1,424,126,532.55 80.12 94,779,398.06 6.66 1,329,347,134.49
| by portfolio | ||||||||||
| Include: |
Portfolio 1:
Aging
563,179,795.56 62.70 61,695,713.83 10.95 501,484,081.73 1,423,311,996.53 80.07 94,779,398.06 6.66 1,328,532,598.47
Items
| 2024/12/31 | 2023/12/31 | ||
| Gross carrying amount | Provision for bad debts | ||
Book value
| Gross carrying amount | Provision for bad debts |
Book valueAmount
Percentage
(%)
Amount
Baddebtsratio
Amount
Percentage(%)
Amount
Percentage
(%)Portfolio 2:
Risk-free
| (%) | ||
| portfolio |
814,536.02 0.05 814,536.02
| Total | 898,142,919.91 | 100.00 | 396,658,838.18 | 501,484,081.73 | 1,777,545,858.35 | 100.00 | 448,198,723.86 | 1,329,347,134.49 |
Significant accounts receivables tested for impairment individually:
Company
| 2024/12/31 | 2023/12/31 |
Carryingamount
Provision for
bad debts
Baddebtsratio
Reason
Carryingamount
Provision forbad debtsBenxi Nanfen XinheMetallurgical Furnace
| (%) | ||
| Material Co., Ltd |
48,196,244.68 48,196,244.68 100.00 Discontinued 48,196,244.68 48,196,244.68BrillianceAutomotive Group
286,766,879.67 286,766,879.67 100.00 Bankruptcy
| Holdings Co., Ltd. |
305,223,081.12 305,223,081.12
| Total | 334,963,124.35 | 334,963,124.35 | 353,419,325.80 | 353,419,325.80 |
Provision for bad debts based on portfolio of credit risk characteristicsProvision for bad debts by portfolio: Aging analysis
Items
| 2024/12/31 | ||
| Account Receivable | Provision for bad debts | Bad debt ratio |
（
）
Within 1 year
478,210,867.53 4,782,108.69 1.00
| (inclusive) | |||
| 1-2 years (inclusive) | 5,786,445.58 | 578,644.56 | 10.00 |
| 2-3 years (inclusive) | 28,559,402.34 | 5,711,880.47 | 20.00 |
| 3-4 years (inclusive) | 557,413.41 | 557,413.41 | 100.00 |
| 4-5 years (inclusive) | 748,799.87 | 748,799.87 | 100.00 |
| over 5 years | 49,316,866.83 | 49,316,866.83 | 100.00 |
| Total | 563,179,795.56 | 61,695,713.83 |
3. The provision for bad debts accrued, reversed or recovered in the current period
Items 2023/12/31
2024/12/31Accrued
Reversed or
recovered
Write-offor Write-
| Changes during the current period | ||
| back | ||
OtherchangesProvisionfor bad
448,198,723.86 -32,700,419.15 18,456,201.45 383,265.08 396,658,838.18
| debts | ||||||
| Total | 448,198,723.86 | -32,700,419.15 | 18,456,201.45 | 383,265.08 | 396,658,838.18 |
Significant amount of bad debt provision recovered or reversed during the period:
Company
Reversed orrecovered
Reason
Recovered
method
Basis for determiningthe original bad debt
provision and its
BrillianceAutomotive Group
| reasonableness | ||
| Holdings Co., Ltd. |
18,456,201.45 Repayment Bank deposit
Debt restructuringagreements
| Total | 18,456,201.45 |
4. Accounts receivable has been written off this year.
| Item | Write-off amount |
| Actual write-off of accounts receivable | 383,265.08 |
5. Top five debtors and contract assets at the end of the period
Company
Accountsreceivable as at
Contractassets at
| 2024/12/31 | 2024/12/31 |
Total
Percentag
e(%)
Provision for
bad debtsBrilliance AutoGroup Holding
286,766,879.67 286,766,879.67 31.93 286,766,879.67
| Co., Ltd. |
| Bengang Group International |
253,981,286.94 253,981,286.94 28.28 2,539,812.87
Company
Accountsreceivable as at
Contractassets at
| 2024/12/31 | 2024/12/31 |
Total
Percentage(%)
Provision forbad debts
Coal ChemicalIndustry (Group)
| Economy and Trade Co., Ltd. |
| Co., Ltd. |
56,946,219.86 56,946,219.86 6.34 569,462.20Benxi NanfenXinheMetallurgicalFurnace Material
48,196,244.68 48,196,244.68 5.37 48,196,244.68
Benxi SteelRefractory
| Co., Ltd |
| Material Co., Ltd. |
44,159,945.78 44,159,945.78 4.92 5,668,766.08
| Total | 690,050,576.93 | 690,050,576.93 | 76.83 | 343,741,165.50 |
(4) Accounts receivable financing
1. Accounts receivable financing by category
| Items | 2024/12/31 | 2023/12/31 |
| Notes Receivable | 64,399,942.70 | 806,822,622.43 |
| Accounts Receivable | ||
| Total | 64,399,942.70 | 806,822,622.43 |
2. Changes in Accounts Receivable Financing and Fair Value During the Period
Item 2023/12/31 Increase
Termination during the
current period
Other changes 2024/12/31
Accumulated loss allowancesrecognized in other
| comprehensive income | ||||||
| Notes Receivable | 806,822,622.43 | 13,266,508,314.98 | 14,008,930,994.71 | 64,399,942.70 | ||
| Total | 806,822,622.43 | 13,266,508,314.98 | 14,008,930,994.71 | 64,399,942.70 |
(5) Prepayments
1. Prepayments disclosed by aging
Aging
| 2024/12/31 | 2023/12/31 |
Amount
Percentage
Amount
Percentage
| (%) | (%) |
Within 1 year
370,426,337.83 94.54 649,310,499.39 95.89
| (inclusive) | ||||
| 1-2 years (inclusive) | 8,643,434.04 | 2.21 | 22,062,469.17 | 3.26 |
| 2-3 years (inclusive) | 10,372,837.63 | 2.65 | 3,389,343.94 | 0.50 |
| Over 3 years | 2,380,526.37 | 0.61 | 2,377,875.91 | 0.35 |
| Total | 391,823,135.87 | 100.00 | 677,140,188.41 | 100.00 |
Notes: There were no outstanding prepayments over 1 year.
2. Top five prepaid companies at the end of the period
| Name of the company | 2024/12/31 | Percentage (%) |
| Shanxi Coking Coal Group Coal Coke Sales Co., Ltd. | 81,108,017.56 | 20.70 |
China Railway Shenyang Bureau Group Co., Ltd.
73,390,555.89 18.73
| Shenyang Railway Logistics Center | ||
| Shanxi Coking Coal Energy Group Co., Ltd. | 58,906,630.23 | 15.03 |
| Shanxi Coking Coal Group Co., Ltd. | 28,876,665.39 | 7.37 |
China Railway Harbin Bureau Group Co., Ltd. Harbin
28,442,605.10 7.26
| Railway Logistics Center | ||
| Total | 270,724,474.17 | 69.09 |
(6) Other receivables
| Items | 2024/12/31 | 2023/12/31 |
| Interest receivables | ||
| Dividend receivables | ||
| Other receivables | 149,015,138.26 | 318,832,784.47 |
| Total | 149,015,138.26 | 318,832,784.47 |
1. Other receivables
(1) Other receivables disclosed by aging
| Items | 2024/12/31 | 2023/12/31 |
| Within 1 year (inclusive) | 58,452,918.98 | 288,092,502.22 |
| 1-2 years (inclusive) | 91,693,078.45 | 35,300,832.41 |
| 2-3 years (inclusive) | 13,520,953.62 | 6,078,775.88 |
| 3-4 years (inclusive) | 3,962,574.01 | 3,125,628.24 |
| 4-5 years (inclusive) | 842,882.51 | 229,028.24 |
| over 5 years | 52,141,851.60 | 61,270,101.82 |
| Subtotal | 220,614,259.17 | 394,096,868.81 |
| Less: Provision for bad debts | 71,599,120.91 | 75,264,084.34 |
| Total | 149,015,138.26 | 318,832,784.47 |
(2) Disclosed by bad debt accrual method
Items
| 2024/12/31 | 2023/12/31 | ||
| Carrying amount | Provision for bad debts | ||
Book value
| Carrying amount | Provision for bad debts |
Book valueAmount
Amount
| Percentage (%) | Bad debts ratio (%) |
Amount
Amount
| Percentage (%) | Bad debts ratio (%) | |||
| Provision for bad debts individually |
18,192,317.00 8.25 18,192,317.00 100.00 18,245,545.94 4.63 18,245,545.94 100.00
202,421,942.17 91.75 53,406,803.91 26.38 149,015,138.26 375,851,322.87 95.37 57,018,538.40 15.17 318,832,784.47
| Provision for bad debts based on portfolio | ||||||||||
| Include: | ||||||||||
| Aging portfolio | 202,194,971.97 | 91.65 | 53,406,803.91 | 26.41 | 148,788,168.06 | 375,693,565.04 | 95.33 | 57,018,538.40 | 15.18 | 318,675,026.64 |
Low risk
226,970.20 0.10 226,970.20 157,757.83 0.04 157,757.83
| portfolio | ||||||||||
| Total | 220,614,259.17 | 100.00 | 71,599,120.91 | 149,015,138.26 | 394,096,868.81 | 100.00 | 75,264,084.34 | 318,832,784.47 |
Significant other receivables tested for impairment individually:
Company
| 2024/12/31 | 2023/12/31 |
Carryingamount
Provision for
bad debts
Baddebtsratio
Reason
Carryingamount
Provision forbad debtsBenxi Ironand Steel(Group) No.
ArchitecturalEngineering
| (%) | ||
| Co., Ltd. |
12,504,978.59 12,504,978.59 100.00 Discontinued 12,504,978.59 12,504,978.59
12,504,978.59 12,504,978.59 12,504,978.59 12,504,978.59
Provision for bad debt by portfolio of credit risk characteristics:
Portfolio accrual item: Aging portfolioItems
Total2024/12/31
| 2024/12/31 | ||
| Amount | Provision for bad debts | Percentage |
（
）
Within 1 year
58,225,948.78 582,286.02 1.00
| (inclusive) | |||
| 1-2 year (inclusive) | 89,253,047.11 | 8,925,304.71 | 10.00 |
| 2-3 year (inclusive) | 13,520,953.62 | 2,704,190.72 | 20.00 |
| 3-4 year (inclusive) | 3,317,576.01 | 3,317,576.01 | 100.00 |
| 4-5 year (inclusive) | 842,882.51 | 842,882.51 | 100.00 |
| Aver 5 years | 37,034,563.94 | 37,034,563.94 | 100.00 |
| Total | 202,194,971.97 | 53,406,803.91 |
(3) Information of provision for bad debts
Provision for bad debts
| Stage one | Stage two | Stage three |
Total12-month
losses
| expected credit | lifetime expected |
credit losses (creditimpairment has not
| occurred) | lifetime expected |
credit losses (credit
| impairment has already occurred) | ||||
| Beginning balance | 2,870,228.94 | 4,630,838.82 | 67,763,016.58 | 75,264,084.34 |
Beginning balance during current
| period | ||||
| --Transfer to the second stage | -892,530.47 | 892,530.47 | ||
| --Transfer to the third stage | -663,515.20 | 663,515.20 | ||
| --Write-back to the second stage | ||||
| --Write-back to the first stage | ||||
| Accrual for the current period | -1,395,412.45 | 6,769,641.34 | -4,360,613.49 | 1,013,615.40 |
| Reversal during the current period | ||||
| Write-back of the current period | ||||
| Write-off during the current period | -4,678,578.83 | -4,678,578.83 | ||
| Other changes | ||||
| Ending balance | 582,286.02 | 11,629,495.43 | 59,387,339.46 | 71,599,120.91 |
(4) Information of provision, reversal or recovery of bad debts of current period
Items 2023/12/31
2024/12/31Accrual
Reversal
or
| Changes during the current period | ||
| recovered | ||
Write-backor write-off
Others
provisionfor other
| receivables |
75,264,084.34 1,013,615.40 4,678,578.83 71,599,120.91
| Total | 75,264,084.34 | 1,013,615.40 | 4,678,578.83 | 71,599,120.91 |
(5) Other accounts receivable has been written off this year.
| Item | Write-off amount |
| Actual write-off of other accounts receivable | 4,678,578.83 |
(6) Other receivables disclosed by nature
| Nature | 2024/12/31 | 2023/12/31 |
Compensation for the
87,177,700.00 212,242,400.00
| “Living Show Belt” project | ||
| Current Account | 130,478,649.66 | 176,119,468.97 |
| Others | 2,957,909.51 | 5,734,999.84 |
| Total | 220,614,259.17 | 394,096,868.81 |
(7) Top five other receivables at the end of the period
Company
Nature or
content
Amount Aging
Percentageof total otherreceivables
Provision forbad debts at2024/12/31Benxi XihuDistrictGovernment
| (%) | ||
| Compensation |
for the“Living Show
87,177,700.00 1-2years 39.52 8,717,770.00Benxi Iron andSteel (Group)No. 3ArchitecturalEngineering
| Belt” project | |
| Co., Ltd. |
CurrentAccount
12,504,978.59
3-4 years,over 5years
5.67 12,504,978.59
Steel (Group)No. 1ArchitecturalEngineering
| Co., Ltd. |
CurrentAccount
3,247,307.07
over 5years
1.47 3,247,307.07
Benxi Iron &Steel (Group)
CurrentAccount
2,674,500.00
Within 1year, 1-2
| Co., Ltd.. | years |
1.21 157,740.00
Huawei CoalPreparation Co.,
| Ltd. |
CurrentAccount
2,261,360.00
over 5years
1.03 2,261,360.00
| Total | 107,865,845.66 | 48.90 | 26,889,155.66 |
(7) Inventories
1. Inventories disclosed by category
Items
| 2024/12/31 | 2023/12/31 |
Gross carrying amount
Inventoryimpairment/Impairment ofcontract fulfillment
Book value Gross carrying amount
Inventoryimpairment/Impairment of
contract
| costs | fulfillment costs |
Book value
| Raw material | 4,300,063,154.21 | 247,221,306.73 | 4,052,841,847.48 | 4,597,335,903.32 | 56,931,870.40 | 4,540,404,032.92 |
| Work in progress | 2,001,147,780.74 | 26,685,410.19 | 1,974,462,370.55 | 1,627,187,498.35 | 12,076,074.97 | 1,615,111,423.38 |
| Finished goods | 1,337,346,627.43 | 31,566,151.19 | 1,305,780,476.24 | 1,619,204,312.92 | 5,167,994.78 | 1,614,036,318.14 |
| Total | 7,638,557,562.38 | 305,472,868.11 | 7,333,084,694.27 | 7,843,727,714.59 | 74,175,940.15 | 7,769,551,774.44 |
2. Impairment of inventory and contract fulfillment cost
Category 2023/12/31
| Increase | Decrease |
2024/12/31Provision Others
Write-back or
Others
| write-off | ||||||
| Raw material | 56,931,870.40 | 222,266,454.27 | 31,977,017.94 | 247,221,306.73 |
Category 2023/12/31
| Increase | Decrease |
2024/12/31Provision Others
Write-back or
Others
| write-off | ||||||
| Work in progress | 12,076,074.97 | 24,653,728.96 | 10,044,393.74 | 26,685,410.19 | ||
| Finished goods | 5,167,994.78 | 31,566,151.19 | 5,167,994.78 | 31,566,151.19 | ||
| Total | 74,175,940.15 | 278,486,334.42 | 47,189,406.46 | 305,472,868.11 |
(8) Other current assets
| Items | 2024/12/31 | 2023/12/31 |
| VAT input tax | 401,503,924.78 | 88,281,138.57 |
| Prepaid tax | 17,220,232.46 | |
| Others | 35,577,335.88 | 52,288,605.87 |
| Total | 437,081,260.66 | 157,789,976.90 |
(9) Long-term equity investment
1. long-term equity investment
Investees 2023/12/31
Impairmentprovision
as of2023/12/31
2024/12/31
Impairment
provision
as of2024/12/31AdditionofInvestment
Reduction
ofInvestment
Income or
loss oninvestmentrecognizedunder the
equity
| Increase/decrease | ||
| method | ||
OtherComprehensiveIncomeAdjustment
OtherEquityChanges
Declaration
of CashDividends
or Profit
Provision Others
1．Joint
| Venture | ||||||||||||
| Subtotal |
2．Associated
ShenyangXiangyu New
| Enterprise |
| Material |
46,910,346.41 -1,497,124.69 45,413,221.72
Investees 2023/12/31
Impairment
provision
as of2023/12/31
2024/12/31
Impairmentprovision
as of2024/12/31AdditionofInvestment
ReductionofInvestment
Income orloss oninvestmentrecognizedunder the
equity
| Increase/decrease | ||
| method | ||
OtherComprehensive
IncomeAdjustment
OtherEquityChanges
Declarationof CashDividendsor Profit
Provision Others
Technology
Subtotal
| Co., Ltd. | ||||||||||||
| 46,910,346.41 | -1,497,124.69 | 45,413,221.72 |
Total
| 46,910,346.41 | -1,497,124.69 | 45,413,221.72 |
(10) Other equity instrument investment
1. The information of other equity instrument investment
Items 2024/12/31 2023/12/31
Gains recognizedin othercomprehensiveincome
Lossesrecognized in
othercomprehensive
income
Accumulated gains
in othercomprehensive
income
Accumulatedlosses in othercomprehensive
income
Dividend
income
Reasons fordesignation as at
fair value
through othercomprehensive
Suzhou LongbenMetal Materials
| income | ||
| Co. Ltd. |
3,940,544.25 3,930,341.27 10,202.98 51,564.25Northeast
929,485,710.38 970,532,698.56 41,046,988.18 108,250,138.62SinosteelShanghai SteelProcessing Co.,
| Special Steel Group Co., Ltd. |
| Ltd. |
14,414,693.00
| Total | 933,426,254.63 | 974,463,039.83 | 10,202.98 | 41,046,988.18 | 51,564.25 | 122,664,831.62 |
(11) Fixed assets
1. Fixed assets and Disposal of fixed assets
| Items | 2024/12/31 | 2023/12/31 |
| Fixed assets | 26,426,320,453.57 | 25,174,210,887.76 |
| Disposal of fixed assets | ||
| Total | 26,426,320,453.57 | 25,174,210,887.76 |
2. Details of fixed assets
Items Buildings Machinery
Transportation
Furniture and office
| equipment and others | equipment |
Total
．
| Gross carrying amount |
（
）
| 31 December 2023 | 13,114,845,627.16 | 51,589,466,896.27 | 400,420,060.37 | 198,681,621.21 | 65,303,414,205.01 |
（
）
| Increase in current period | 1,180,423,739.35 | 1,887,443,237.03 | 17,145,875.04 | 44,792,995.18 | 3,129,805,846.60 |
| —Including: Purchase | 22,337,097.00 | 1,497,811.65 | 286,053.10 | 24,120,961.75 |
—Transferred from
1,156,406,102.35 1,894,470,747.52 9,904,368.00 44,903,666.98 3,105,684,884.85
| construction in progress | |||||
| —Others | 1,680,540.00 | -8,525,322.14 | 6,955,453.94 | -110,671.80 |
（
）
| Decrease in current period | 33,246,189.89 | 771,012,849.69 | 16,580,203.06 | 558,524.79 | 821,397,767.43 |
—Including: Disposal or
32,704,189.89 290,485,326.95 16,580,203.06 558,524.79 340,328,244.69
| scrapped | |||||
| —Others | 542,000.00 | 480,527,522.74 | 481,069,522.74 |
（
）
| 31 December 2024 | 14,262,023,176.62 | 52,705,897,283.61 | 400,985,732.35 | 242,916,091.60 | 67,611,822,284.18 |
2．Total accumulated
（
| depreciation |
| 1 |
）
| 31 December 2023 | 6,643,381,244.52 | 32,937,556,821.40 | 324,031,006.12 | 112,924,985.39 | 40,017,894,057.43 |
（
）
| Increase in current period | 223,976,867.87 | 1,375,164,992.17 | 11,465,609.46 | 25,069,873.24 | 1,635,677,342.74 |
Items Buildings Machinery
Transportation
Furniture and office
| equipment and others | equipment |
Total
| —Including: Provision | 218,757,991.40 | 1,380,871,732.54 | 10,828,573.77 | 25,219,045.03 | 1,635,677,342.74 |
| —Others | 5,218,876.47 | -5,706,740.37 | 637,035.69 | -149,171.79 |
（
）
| Decrease in current period | 23,530,467.99 | 539,869,117.89 | 15,413,972.37 | 557,362.97 | 579,370,921.22 |
—Including: Disposal or
23,074,947.59 248,828,673.13 15,413,972.37 557,362.97 287,874,956.06
| scrapped | |||||
| —Others | 455,520.40 | 291,040,444.76 | 291,495,965.16 |
（
）
| 31 December 2024 | 6,843,827,644.40 | 33,772,852,695.68 | 320,082,643.21 | 137,437,495.66 | 41,074,200,478.95 |
| 3 |
．
| Total impairment |
（
）
| 31 December 2023 | 83,249,262.08 | 28,059,997.74 | 111,309,259.82 |
（
）
| Increase in current period | 429.84 | -429.84 | |||
—
| Including: Provision | |||||
—
| Other | 429.84 | -429.84 |
（
）
| Decrease in current period | 7,908.16 | 7,908.16 |
—Including: Disposal or
7,908.16 7,908.16（
| scrapped |
| 4 |
）
| 31 December 2024 | 83,249,691.92 | 28,051,659.74 | 111,301,351.66 |
4．Total net book value of fixed
Items Buildings Machinery
Transportation
Furniture and office
| equipment and others | equipment |
Total（
）
| 31 December 2024 | 7,334,945,840.30 | 18,904,992,928.19 | 80,903,089.14 | 105,478,595.94 | 26,426,320,453.57 |
（
）
| 31 December 2023 | 6,388,215,120.56 | 18,623,850,077.13 | 76,389,054.25 | 85,756,635.82 | 25,174,210,887.76 |
3. Fixed assets idled temporarily
Items
Gross carrying
Accumulated
| amount | depreciation |
Impairment Book value Note
| Buildings | 112,751,517.87 | 68,252,420.48 | 41,943,853.74 | 2,555,243.65 | |
| Machinery | 3,034,473.01 | 2,400,446.13 | 75,666.43 | 558,360.45 | |
| Total | 115,785,990.88 | 70,652,866.61 | 42,019,520.17 | 3,113,604.10 |
4. Fixed assets leased out by operating lease
| Items | Amount as at 2024/12/31 |
| Buildings | 21,953,644.55 |
| Machinery | 516,890.90 |
5. Fixed assets without property rights certificates at the end of the period
| Items | Book value | Reason |
| Buildings | 2,368,256,204.48 | In process |
(12) Construction in progress
1. Construction in progress and Construction materials
Items
| 2024/12/31 | 2023/12/31 |
Gross carrying
amount
Totalimpair
Book value
Gross carrying
amount
Totalimpairm
| ment | ent |
Book value
| Construction in progress | 3,934,442,501.50 | 3,934,442,501.50 | 4,307,646,942.37 | 4,307,646,942.37 | ||
| Project materials | 757,204.94 | 757,204.94 | ||||
| Total | 3,934,442,501.50 | 3,934,442,501.50 | 4,308,404,147.31 | 4,308,404,147.31 |
2. Details of construction in progress
Items
| 2024/12/31 | 2023/12/31 |
Gross carrying amount
Totalimpairme
Book value Gross carrying amount
Totalimpairmen
| nt | t |
Book value
483,671,390.32 483,671,390.32 1,195,585,747.24 1,195,585,747.24
| Special Steel Electric Furnace Capacity Replacement Project |
| Cold Rolling Transformation Project |
492,919,655.40 492,919,655.40 578,301,217.76 578,301,217.76
Renovation of Plate Raw
| Material Plant |
160,208,719.65 160,208,719.65 452,296,692.77 452,296,692.77
Furnace and Heat Exchanger ofthe No.7 Blast Furnace in Plate
| Ironmaking Plant |
120,538,633.05 120,538,633.05
119,656,230.22 119,656,230.22 256,434,251.91 256,434,251.91
| Environmental Protection Renovation in No. 2 Coal Storage Field of Plates Raw Material Plant |
| Centralized Control Project before Ironmaking of Plates Iron Making Plant |
107,816,471.12 107,816,471.12 61,969,240.03 61,969,240.03
25,201,133.59 25,201,133.59 99,129,674.71 99,129,674.71
| Blocking of ABC and DEF Stockyard in Plates Iron Making Plant |
| Desulphurization Waste Liquor |
Acid Making Project in Plates
79,335,324.68 79,335,324.68 78,562,923.84 78,562,923.84
| Iron Making Plant |
| 1780 Production Line Upgrading |
78,531,654.02 78,531,654.02 58,044,160.54 58,044,160.54
original No.3 operation areas of the
| Iron and Steel Plant |
68,740,566.29 68,740,566.29
65,430,926.20 65,430,926.20
Items
| 2024/12/31 | 2023/12/31 |
Gross carrying amount
Totalimpairme
Book value Gross carrying amount
Totalimpairmen
| nt | t |
Book value
| furnace in Plate Ironmaking Plant |
| Renovation of the dust removal system in the No. 6 blast |
furnace area of
64,377,725.64 64,377,725.64
| the Iron and Steel Plant |
| Supporting Projects for Outward Transportation of Nanfen Pipeline Transported |
Mineral
20,268,938.79 20,268,938.79 37,857,546.59 37,857,546.59
| Concentrate in Bengang Plates and Iron Making General Plant |
| Special Steel Rolling Mill Renovation Project |
59,562,329.18 59,562,329.18 367,831,655.88 367,831,655.88
(Energy-
| saving and Environmental Protection Renovation of No. 5 Blast Furnace of Ironmaking Plant) |
55,645,429.58 55,645,429.58 31,033,533.06 31,033,533.06
53,198,819.53 53,198,819.53 17,440,916.39 17,440,916.39
| Bengang Plate intelligent factory Project |
| Project of Converting Steam Drums to |
Electric Drums at the Plate Energy
48,987,269.15 48,987,269.15
| Management and Control Center |
| Environmental Protection Retrofit of |
the Second Sintering Stockyard at the
46,697,183.08 46,697,183.08
| Plate Ironmaking General Works |
| Retrofit of the Dust Removal System |
in the New No.1 Blast Furnace Area at
46,333,893.64 46,333,893.64
| the Ironmaking General Works |
| Flue Gas Desulfurization and Denitrification Project of 4B and 5 Furnace Group in |
44,724,618.50 44,724,618.50 54,553,821.01 54,553,821.01
Items
| 2024/12/31 | 2023/12/31 |
Gross carrying amount
Totalimpairme
Book value Gross carrying amount
Totalimpairmen
| nt | t |
Book value
| Bengang Plates and Iron Making General Plant |
| Plate No.1 Dry Quenching |
System Boosting Modificationand
41,832,708.63 41,832,708.63 76,994,180.14 76,994,180.14
| Unit No.34 New Construction | ||||||
| CCPP Power Generation Project | 40,983,279.77 | 40,983,279.77 | ||||
| Zero Solid Waste Project for Plate Special Steel Division |
39,492,805.04 39,492,805.04 16,806,961.88 16,806,961.88
Sinter Machine at Plate Ironmaking
| General Works |
37,822,726.20 37,822,726.20
34,238,770.60 34,238,770.60
| Fully Enclosed Belt Conveyor Gallery Project at Benxi Steel Plate Ironmaking General Works |
| Hazard Rectification of Taizi River Railway Bridge at Railway Transportation Company |
33,150,135.48 33,150,135.48 2,945,660.39 2,945,660.39
Furnace Ore Bins at Plate Ironmaking
| General Works |
32,949,949.75 32,949,949.75
m3/h Nitrogen Compressors in
| Energy General Plant |
32,705,542.87 32,705,542.87 25,842,342.61 25,842,342.61
colding area) automotive plate
| quality improvement |
32,349,796.66 32,349,796.66 7,010,000.00 7,010,000.00
31,296,143.60 31,296,143.60
| Retrofit of Dust Removal System in No.7 Blast Furnace Area at Ironmaking General Works |
| Refractory Materials Retrofit |
for No.7 Blast Furnace at Plate
30,936,881.22 30,936,881.22
Items
| 2024/12/31 | 2023/12/31 |
Gross carrying amount
Totalimpairme
Book value Gross carrying amount
Totalimpairmen
| nt | t |
Book value
30,641,320.00 30,641,320.00
| Heat Treatment Retrofit for Plate Hot Rolling Production Line (PM and NOX Control) |
| Coking Wastewater Reconstruction |
Project at Plate Ironmaking General
30,297,204.41 30,297,204.41
| Works |
| Integration Construction of |
Informatization System forAnsteel and Bengang
112,748,748.06 112,748,748.06
Others
| Recombination | ||||||
| 1,243,898,325.64 | 1,243,898,325.64 | 776,257,667.56 | 776,257,667.56 | |||
| Total | 3,934,442,501.50 | 3,934,442,501.50 | 4,307,646,942.37 | 4,307,646,942.37 |
3. Changes in important construction projects in the current period
Items Budget 2023/12/31
Increase duringcurrent period
Transferred tofixed asset duringcurrent period
Otherdecrease
during
current
period
2024/12/31
Projectcumulativeinvestmentaccounted
for theproportion
of the
budget
Projectprogress(%)
Accumulated
amount of
interestcapitalization
Including：
Interestcapitalization
amount incurrent period
Interestcapitalization
rate in
currentperiod (%)
Sources offunds
Special SteelElectric FurnaceCapacityReplacement
| (%) | ||
| Project |
1,732,481,000.00
1,195,585,747.24
87,226,902.40
799,141,259.32
483,671,390.32
92.17
92.17
52,044,899.29
29,014,349.00
4.08
Fundraising
TransformationProject
843,640,000.00
| Cold Rolling |
578,301,217.76
138,207,305.42
223,588,867.77
492,919,655.41
91.71
91.71
40,109,076.46
21,549,048.81
4.08
| Loan |
fromfinancial
EnvironmentalProtectionRenovation ofSheet Raw
| institute | ||
| Material Plant |
1,286,370,000.00 452,296,692.77
18,129,927.97
310,217,901.09
160,208,719.65
36.57
36.57
36,764,770.52
17,782,974.96
4.08
Loanfromfinancialinstitute
EnvironmentalProtection andIntelligentUpgrading andRetrofit for PlateMaterial Yard –EnvironmentalProtection
| Retrofit Project |
310,000,000.00
256,434,251.91
33,479,849.25
170,257,870.94
119,656,230.22
93.52
93.52
9,092,899.25
9,092,899.25
4.08
Loanfromfinancialinstitute
Items Budget 2023/12/31
Increase duringcurrent period
Transferred tofixed asset duringcurrent period
Otherdecreaseduringcurrentperiod
2024/12/31
Projectcumulativeinvestmentaccounted
for theproportion
of the
budget
Projectprogress
(%)
Accumulatedamount ofinterestcapitalization
Including：
Interestcapitalization
amount incurrent period
Interestcapitalizationrate incurrentperiod (%)
Sources offunds
for No.2 Coal
| (%) | ||
| Storage Yard | ||
| Centralized |
Control ProjectbeforeIronmaking ofPlates IronMaking General
162,000,000.00
| Plant |
61,969,240.03
45,847,231.09
107,816,471.12
66.55
66.55
OthersSpecial SteelRolling MillRenovation
| Project |
734,730,000.00
367,831,655.88
36,893,421.17
345,162,747.87
59,562,329.18
89.94
89.94
36,315,395.15
14,232,254.54
4.08
Loan
from
financial
| institute | ||
| Desulphurization |
Waste LiquorAcid MakingProject in PlatesIron Making
99,760,000.00
| Plant |
78,562,923.84
10,855,250.00
10,082,849.16
79,335,324.68
89.63
89.63
Others1780 Production
193,000,000.00
| Line Upgrading |
58,044,160.54
20,487,493.48
78,531,654.02
83.31
83.31
Others
| Retrofit of |
Original No.3Operation AreaDust Removal
99,660,000.00
| System for |
68,740,566.29
68,740,566.29
68.98
68.98
Others
Items Budget 2023/12/31
Increase duringcurrent period
Transferred tofixed asset duringcurrent period
Otherdecrease
during
current
period
2024/12/31
Projectcumulativeinvestmentaccounted
for theproportion
of the
budget
Projectprogress
(%)
Accumulated
amount of
interestcapitalization
Including：
Interestcapitalization
amount incurrent period
Interestcapitalizationrate incurrentperiod (%)
Sources offunds
Ultra-LowEmissions atIronmaking
| (%) | ||
| General Works | ||
| Integration |
Construction ofInformatizationSystem forAnsteel andBengang
232,100,000.00
| Recombination |
112,748,748.06
51,863,186.24
164,611,934.30
100.00
100.00
7,233,001.66
853,186.24
4.08
Loanfromfinancialinstitute
Total
| 3,161,774,638.03 | 511,731,133.31 |
| 2,023,063,430.45 | 1,650,442,340.89 |
| 181,560,042.33 | 92,524,712.80 |
(13) Right of use assets
1. Right of use assets
| Items | Land | Buildings | Machinery | Total |
1. Gross carrying
| amount | ||||
| (1) 31 December 2023 | 1,132,274,415.17 | 368,465,367.56 | 1,500,739,782.73 |
(2) Increase in current
444,230,189.48 444,230,189.48
| period | ||||
| —Addition | ||||
| —Others | 444,230,189.48 | 444,230,189.48 |
(3) Decrease in current
—Disposal or
| period |
| scrapping |
| —Others | ||||
| (4) 31 December 2024 | 1,132,274,415.17 | 368,465,367.56 | 444,230,189.48 | 1,944,969,972.21 |
2．Total accumulated
| depreciation | ||||
| (1) 31 December 2023 | 119,712,708.68 | 61,410,894.68 | 181,123,603.36 |
(2) Increase in current
39,904,236.24 20,470,298.28 17,546,124.19 77,920,658.71
| period | ||||
| —Provision | 39,904,236.24 | 20,470,298.28 | 17,546,124.19 | 77,920,658.71 |
(3) Decrease in current
—Disposal or
| period |
| scrapping |
| —Others | ||||
| (4) 31 December 2024 | 159,616,944.92 | 81,881,192.96 | 17,546,124.19 | 259,044,262.07 |
| 3 |
．
| Total impairment | ||||
| (1) 31 December 2023 |
(2) Increase in current
| period | ||||
| —provision |
| Items | Land | Buildings | Machinery | Total |
(3) Decrease in current
—Disposal or
| period |
| scrapping |
| —Others | ||||
| (4) 31 December 2024 |
4．Total net book
| value | ||||
| (1) 31 December 2024 | 972,657,470.25 | 286,584,174.60 | 426,684,065.29 | 1,685,925,710.14 |
| (2) 31 December 2023 | 1,012,561,706.49 | 307,054,472.88 | 1,319,616,179.37 |
(14) Intangible assets
1. Details of intangible assets
Items Software Land use right Total
．
| Total of original value |
（
）
| 31 December 2023 | 267,948.72 | 453,005,114.76 | 453,273,063.48 |
（
）
| Increase | 4,171,704.31 | 36,424,807.76 | 40,596,512.07 |
| —Purchase | 4,171,704.31 | 36,424,807.76 | 40,596,512.07 |
| —Internal R&D | |||
| —Increase in Mergers | |||
| —Others |
（
）
| Decrease | |||
| —Disposal | |||
| —Others |
（
）
| 31 December 2024 | 4,439,653.03 | 489,429,922.52 | 493,869,575.55 |
| 2 |
．
| Total Accumulated Amortization |
（
）
| 31 December 2023 | 186,634.58 | 89,268,111.77 | 89,454,746.35 |
（
）
| Increase | 500,188.88 | 9,134,571.64 | 9,634,760.52 |
| —Provision | 500,188.88 | 9,134,571.64 | 9,634,760.52 |
（
）
| Decrease |
Items Software Land use right Total
| —Disposal | |||
| —Others |
（
）
| 31 December 2024 | 686,823.46 | 98,402,683.41 | 99,089,506.87 |
| 3 |
．
| Total of Impairment |
（
）
| 31 December 2023 |
（
）
| Increase | |||
| —Provision |
（
）
| Decrease | |||
| —Disposal | |||
| —Others |
（
）
| 31 December 2024 | |||
| 4 |
．
| Total of Net book value |
（
）
| 31 December 2024 | 3,752,829.57 | 391,027,239.11 | 394,780,068.68 |
（
）
| 31 December 2023 | 81,314.14 | 363,737,002.99 | 363,818,317.13 |
2. Land use right without property rights certificates at the end of the period
| Items | Book value | Reason |
| Land use right | 36,424,807.76 | In process |
| Total | 36,424,807.76 |
(15) Deferred tax asset and deferred tax liability
1. Deferred tax assets before taking into consideration of the balance offsetting
Items
| 2024/12/31 | 2023/12/31 |
Deductibletemporary
Deferred tax
asset
Deductibletemporary
| differences | differences |
Deferred tax
asset
| Impairment | 598,249,997.63 | 90,011,580.45 | 403,698,019.09 | 100,549,055.02 |
Changes in fair valueof other financial
122,664,831.62 18,399,724.74 81,617,843.44 20,404,460.86
Items
| 2024/12/31 | 2023/12/31 |
Deductibletemporary
Deferred tax
asset
Deductibletemporary
| differences | differences |
Deferred tax
assetother comprehensive
| income | ||||
| Lease liabilities | 1,752,154,297.33 | 262,823,144.60 | 1,384,348,462.17 | 346,087,115.54 |
| Total | 2,473,069,126.58 | 371,234,449.79 | 1,869,664,324.70 | 467,040,631.42 |
2. Deferred tax liabilities before taking into consideration of the balance offsetting
Items
| 2024/12/31 | 2023/12/31 |
Taxabletemporary
Deferred tax
liabilities
Taxabletemporary
| differences | differences |
Deferred tax
liabilitiesChanges in fair valueof other financialassets recognized inother comprehensive
31,158.29 4,673.74 41,361.27 10,340.32
| income | ||||
| Right-of-use assets | 1,685,925,710.14 | 252,888,856.52 | 1,319,616,179.47 | 329,904,044.87 |
| Total | 1,685,956,868.43 | 252,893,530.26 | 1,319,657,540.74 | 329,914,385.19 |
3. Unrecognized deferred tax assets
| Items | 2024/12/31 | 2023/12/31 |
| Deductible temporary differences | 286,782,181.23 | 305,249,989.08 |
| Deductible losses | 9,483,185,444.74 | 4,213,758,736.79 |
| Total | 9,769,967,625.97 | 4,519,008,725.87 |
4. The deductible loss of unrecognized deferred tax assets due in the following period
| Year | 31 December 2024 | 31 December 2023 | Notes |
| Year 2024 | 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 | 8,117,351.82 | 1,919,832,999.81 | |
| Year 2028 | 2,266,704,199.88 | ||
| Year 2029 | |||
| Year 2030 | |||
| Year 2031 | |||
| Year 2032 | 1,911,715,647.99 | ||
| Year 2033 | 2,367,541,315.76 | ||
| Year 2034 | 5,180,753,981.42 | ||
| Permanent | |||
| Total | 9,483,185,444.74 | 4,213,758,736.79 |
(16) Other non-current assets
Items
| 2024/12/31 | 2023/12/31 |
Grosscarrying
Impairment
Book value
Gross carryingamount
Impairment
Book valuePrepayment for long-
| amount | |
| term assets |
86,297,275.1
86,297,275.1
139,318,979.6
139,318,979.6
Total
86,297,275.1
86,297,275.1
| 6 | 6 |
139,318,979.6
139,318,979.6
| 1 | 1 |
(17) Assets with restricted ownership or use rights
Items
| 2024/12/31 | 2023/12/31 |
Carrying amount Book value
Type of
Status Carrying amount Book value
Type of
| restriction | restriction |
Status
Cash at bank andon hand
863,683,251.57 863,683,251.57
Margin for Notes
receivable,Margin for letter
of credit
Margin forNotesreceivable,Margin for letter
1,009,879,189.82 1,009,879,189.82
Margin for Notes
receivable、Margin for letter
of credit
Margin forNotesreceivable,Margin for letter
| of credit | of credit | |||||||
| Notes receivable | 165,968,800.17 | 165,968,800.17 | Pledged | Pledged | 218,427,117.76 | 218,427,117.76 | pledged | Pledged |
| Total | 1,029,652,051.74 | 1,029,652,051.74 | 1,228,306,307.58 | 1,228,306,307.58 |
(18) Short-term loans
1. Classification of short-term loans
| Items | 2024/12/31 | 2023/12/31 |
| Credit loans | 370,000,000.00 | 300,000,000.00 |
| Discounted unexpired bills | 1,055,490.50 | 28,000,000.00 |
| Total | 371,055,490.50 | 328,000,000.00 |
(19) Notes payable
| Items | 2024/12/31 | 2023/12/31 |
| Bank acceptance bill | 10,412,029,417.45 | 8,607,537,398.13 |
| Commercial acceptance bill | 1,559,477,470.97 | 463,403,421.74 |
| Letter of credit | 1,011,196,781.44 | 1,300,000,000.00 |
| Total | 12,982,703,669.86 | 10,370,940,819.87 |
Note: The total amount of overdue but unpaid bills payable at the end of this period was RMB
48,559.99, and the reason for the overdue non-payment was that the holder did not submit apayment application.
(20) Accounts payable
1. Accounts payable
| Items | 2024/12/31 | 2023/12/31 |
| Within 1 year (inclusive) | 2,680,864,210.15 | 2,782,483,183.30 |
| 1-2 year (inclusive) | 61,748,259.48 | 9,101,689.70 |
| 2-3 year (inclusive) | 8,554,593.94 | 7,414,901.65 |
| Over 3 years | 10,592,375.79 | 10,289,787.90 |
| Total | 2,761,759,439.36 | 2,809,289,562.55 |
2. Significant accounts payable aging over one year or overdue
| Items | 2024/12/31 | Reasons |
Benxi Xihu Metallurgical Furnace
8,634,100.91
Not yet eligible for
| Materials Co., Ltd. | settlement |
| Items | 2024/12/31 | Reasons |
| Total | 8,634,100.91 |
(21) Prepayments
| Items | 2024/12/31 | 2023/12/31 |
| Within 1 year (inclusive) | 611.60 | 143,119.29 |
| 1-2 year (inclusive) | 58,715.61 | |
| 2-3 year (inclusive) | ||
| Over 3 years | ||
| Total | 59,327.21 | 143,119.29 |
(22) Contract liabilities
1. Details of contract liabilities
| Items | 2024/12/31 | 2023/12/31 |
Payment received in advance and labor
2,894,761,202.08 3,317,561,273.87
| costs | ||
| Others | 13,837,223.65 | 890,227.48 |
| Total | 2,908,598,425.73 | 3,318,451,501.35 |
(23) Employee benefits payable
1. Employee benefits payable
| Items | 2023/12/31 | Increase | Decrease | 2024/12/31 |
Short-term employee
1,326,522.66 1,781,081,109.33 1,780,634,563.64 1,773,068.35Post-employmentbenefits - defined
| benefits |
| contribution plans |
264,658,442.66 264,658,442.66
| Termination benefits | 91,178,161.79 | 91,178,161.79 |
Other benefits due
| within one year | ||||
| Others |
| Items | 2023/12/31 | Increase | Decrease | 2024/12/31 |
| Total | 1,326,522.66 | 2,136,917,713.78 | 2,136,471,168.09 | 1,773,068.35 |
2. Short-term employee benefits
| Items | 2023/12/31 | Increase | Decrease | 2024/12/31 |
(1) Salary, bonus,
1,241,729,118.00 1,241,729,118.00
| allowance and subsidy | ||||
| (2) Employee welfare | 183,278,262.06 | 183,278,262.06 | ||
| (3) Social Insurance | 146,659,134.63 | 146,659,134.63 |
Including: Medicalinsurance and maternity
110,084,418.51 110,084,418.51Work injury
| insurance |
| insurance |
33,960,492.12 33,960,492.12
| Others | 2,614,224.00 | 2,614,224.00 | ||
| (4) Housing fund | 158,404,372.00 | 158,404,372.00 |
(5) Union funds and staff
1,326,522.66 30,289,722.04 29,843,176.35 1,773,068.35
(6) Short-term
| education fee |
| compensated absences |
(7) Short-term profit -
(8) Other short-term
| sharing scheme |
| benefits |
20,720,500.60 20,720,500.60
| Total | 1,326,522.66 | 1,781,081,109.33 | 1,780,634,563.64 | 1,773,068.35 |
3. Defined contribution plans
| Items | 2023/12/31 | Increase | Decrease | 2024/12/31 |
| Basic pension fund | 209,080,938.63 | 209,080,938.63 | ||
| Unemployment insurance | 6,533,652.46 | 6,533,652.46 | ||
| Annuity | 49,043,851.57 | 49,043,851.57 |
| Items | 2023/12/31 | Increase | Decrease | 2024/12/31 |
| Total | 264,658,442.66 | 264,658,442.66 |
(24) Current tax liabilities
| Items | 2024/12/31 | 2023/12/31 |
| Value-added tax | 10,272,516.44 | 9,391,089.23 |
| Resource Tax | 750,000.00 | |
| Corporate income tax | 16,029,179.78 | 16,645,618.08 |
| City maintenance and construction tax | 540,889.49 | 526,991.99 |
| House property tax | 7,370,656.33 | 4,751,185.44 |
| Land use right tax | 1,088,809.99 | 1,088,809.99 |
| Individual income tax | 2,157,426.95 | 2,480,368.12 |
Educational surcharges（including
）
386,769.92 376,422.86
| Others | 15,473,848.93 | 22,378,599.59 |
| Total | 54,070,097.83 | 57,639,085.30 |
(25) Other payables
| Items | 2024/12/31 | 2023/12/31 |
| Interest payables | ||
| Dividends payables | 99,687,100.35 | |
| Other payables | 2,255,007,099.66 | 1,727,079,607.48 |
| Total | 2,354,694,200.01 | 1,727,079,607.48 |
1. Dividends payables
| Items | 2024/12/31 | 2023/12/31 |
| Bengang Group Co., Ltd. | 45,054,305.70 | |
| Pohang Iron and Steel Co. Ltd (POSCO) | 54,632,794.65 | |
| Total | 99,687,100.35 |
2. Other payables
(1) Other payables disclosed by nature
| Items | 2024/12/31 | 2023/12/31 |
| Deposit | 586,292.00 | 710,292.00 |
| Margin | 377,422,555.34 | 339,259,547.69 |
| Accounts | 1,871,598,040.35 | 1,374,846,301.16 |
| Others | 5,400,211.97 | 12,263,466.63 |
| Total | 2,255,007,099.66 | 1,727,079,607.48 |
(2)Significant other payables aged over one year or overdue
| Items | 2024/12/31 | Reasons |
| Hunan MCC Changtian Energy Saving and Environmental Protection Technology Co., Ltd. |
21,182,950.50
The project is still in
Shanghai Baosight Software Co., Ltd. 6,989,390.00
The project is still in
| progress |
| progress |
MCC Jingcheng Engineering Technology Co., Ltd 9,677,280.00
The project is still in
(26) Non-current liabilities due within one year
progressItems
| Items | 2024/12/31 | 2023/12/31 |
| Long-term loans due within one year | 805,270,731.20 | 562,310,473.60 |
| Including: pledge loan | ||
| Mortgage loan | ||
| Guaranteed loan | ||
| Credit loan | 805,270,731.20 | 562,310,473.60 |
| Bond payables due within one year | 106,989,474.64 | 81,650,008.44 |
Other long-term payables due within one
118,242,710.82 41,921,209.72
| year | ||
| Total | 1,030,502,916.66 | 685,881,691.76 |
(27) Other current liabilities
| Items | 2024/12/31 | 2023/12/31 |
| Output tax to be transferred | 328,981,058.74 | 399,791,720.50 |
| Total | 328,981,058.74 | 399,791,720.50 |
(28) Long-term loans
| Items | 2024/12/31 | 2023/12/31 |
| Pledged loans | ||
| Mortgage loan | ||
| Guaranteed loans | ||
| Credit loans | 3,697,212,193.60 | 2,286,037,174.40 |
| Subtotal | 3,697,212,193.60 | 2,286,037,174.40 |
Less: Non-current liabilities due within
805,270,731.20 562,310,473.60
| one year | ||
| Total | 2,891,941,462.40 | 1,723,726,700.80 |
Notes: The interest rate of long-term loans is 2.45%-3.28%.
(29) Bonds payable
1.Bonds payable disclosed by category
| Items | 2024/12/31 | 2023/12/31 |
| Convertible Bond | 5,569,899,459.53 | 5,451,381,676.38 |
| Total | 5,569,899,459.53 | 5,451,381,676.38 |
2. Changes in Bonds payables (Excluding other financial instruments such as preferred stocks and perpetual bonds classified as financial liabilities)
3. Description of corporate convertible bond:
Items Face value
Issuedate
Bondduration
Issuance amount
Balance at the endof the previousyear
Current
issue
Interest accrued
at face value
Premium and
discountamortization
Repayment in
this period
Shareconversion andrepurcha
se this
Balance at the endof the currentperiod
Defaultor not
BengangConvertibleBond (Bond
| year | ||
| code:127018) |
6,800,000,000.00
29thJune2020
6 years 6,800,000,000.00 5,451,381,676.38 - 188,647,127.08 118,556,783.14 81,657,652.4339,000.00 5,676,888,934.17No
due within oneyear
106,989,474.64106,989,474.64No
| Less: amount | ||||||||||||
| Total | 5,451,381,676.38 | 81,657,652.44 | 118,556,783.14 | 81,657,652.43 | 39,000.00 | 5,569,899,459.53 |
Approved by Shenzhen Stock Exchange "Shen Zheng Shang [2020] No. 656", the Company’s RMB 6.80 billion convertible corporate bonds were listed on theShenzhen Stock Exchange on August 4, 2020, and the abbreviation is "Bengang Convertible Bonds". The bond code is "127018". The conversion period of theconvertible corporate bonds issued this time is from the first trading day after six months of the issuance of the convertible corporate bonds (July 3, 2020) tothe maturity date of the convertible corporate bonds, that is, from January 4, 2021 to June 28, 2026. The initial conversion price of the convertible bonds isRMB 5.03 per share. From January 1, 2024 to December 31, 2024, an aggregate of RMB35,000.00 of the convertible bonds were converted into 8,855.00common stock. The total amount of convertible bonds redeemed is RMB 4,000.00. Among them:
In the first quarter of 2024, the Bengang convertible bonds were reduced by RMB7,000.00 (70 bonds) due to the conversion, and the number of shares convertedwas 1,771.00 shares, and the conversion price was RMB3.95 per share;In the third quarter of 2024, the Bengang convertible bonds were reduced by RMB13,000.00 (130 bonds) due to the conversion, and the number of sharesconverted was3,289.00 shares, and the conversion price was RMB3.95 per share;reduced by RMB 4,000.00 (40 bonds) due to redemption;In the forth quarter of 2024, the Bengang convertible bonds were reduced by RMB15,000.00 (150 bonds) due to the conversion, and the number of sharesconverted was 3,795.00 shares, and the conversion price was RMB3.95 per share;
As of December 31, 2024, the remaining amount of the face value of the convertible bonds was RMB 5,630,985,100.00 Yuan (56,309,851.00 bonds).
(30) Lease liabilities
| Items | 2024/12/31 | 2023/12/31 |
| Lease payments | 2,539,395,930.63 | 2,098,254,018.65 |
| Less: Unrealized financing expenses | 787,241,633.30 | 713,905,556.48 |
Reclassified to non-current liabilities
118,242,710.82 41,921,209.72
| within one year | ||
| Total | 1,633,911,586.51 | 1,342,427,252.45 |
(31) Deferred income
| Items | 2023/12/31 | Increase | Decrease | 2024/12/31 | Reason |
Government
174,142,383.18 61,766,472.38 61,989,768.09 173,919,087.47
| subsidy | |||||
| Total | 174,142,383.18 | 61,766,472.38 | 61,989,768.09 | 173,919,087.47 |
Items 2023/12/31 Increase
non-operating
income
Transfer toother income
Offsetting
cost orexpenses
Otherchanges
2024/12/31
| Transfer to | Related to |
assets orincomeResearch and Development of High-strength Steel for the Third Generationof Automobiles
580,000.00 580,000.00 Assets
Project of Coal-fired Boiler in High-pressure Workshop of Bengang PowerPlant
1,800,000.00 600,000.00
| Desulfurization and Denitrification |
1,200,000.00
AssetsAdvanced Treatment Project of Carbon
| Fiber Wastewater in Dongfeng Plant |
Area of Plate Coking Plant
3,800,000.00 1,900,000.00
1,900,000.00
AssetsSecond Sintering
Removal Ultra-
| low Emission |
Reconstruction Project
820,000.00 410,000.00
410,000.00
Assets
Improvement Project for Plate MaterialArea
9,680,000.00 2,420,000.00
| Converter Gas Recovery Efficiency |
7,260,000.00
Assets
| Central environmental protection |
award fund
84,352,000.00
21,088,000.00
63,264,000.00
Assets
Strong Province Special Fund
3,840,000.00 960,000.00
| 2021 Intellectual Manufacturing |
2,880,000.00
Assets
| 2020 Ecological Civilization |
Construction Special Project (Special
Project)
20,000,000.00 4,000,000.00
| Steel Electric Furnace Upgrading |
16,000,000.00
Assets
| 2021 Manufacturing Strong Province |
Special Fund Project
8,100,000.00 1,620,000.00
6,480,000.00
Assets
| Bengang Automotive Sheet Engineering Laboratory Construction Project |
770,472.38
25,338.58
745,133.80
AssetsXingliao Talent Program GovernmentGrant
236,500.00
46,500.00
190,000.00
Income2021 Benxi City Expert-EnterpriseCollaboration Program
5,000.00
5,000.00
Income
(Provincial Department of Science and
28,400.00
28,400.00
IncomeDesign of Rare Earth Steel
Properties
317,349.00 15,175.50
| Metallurgical Slag System and Research on Its Physicochemical |
302,173.50
Income
| 2021 Municipal Skilled Master |
Workstation Fee
77,219.45 56,454.88
20,764.57
IncomeStudy on the Mechanism and Controlof the Effect of Rare Earth Oxysulfides
Steel
122,220.20 70,200.00
| on the Plasticizability of Automotive |
52,020.20
Income
| 2019 Municipal Master Skill |
Workstation Fee
69,500.19 69,500.19 Income
Workstation Fee
58,766.34 58,766.34 IncomeLiaoning Province "Hundred,Thousand, Thousand, ThousandTalents Project" funding project in2018
220,000.00 220,000.00 Income
Department National Natural ScienceFoundation Committee
334,000.00 334,000.00 Income
| Provincial Science and Technology |
| 2019 Provincial Skilled Master |
Workstation Fee
200,000.00 100,000.00
100,000.00
Income2020 Provincial-
Workstation Expenditure
100,000.00
| level Skill Master |
63,799.16
36,200.84
Income
Charge
168,000.00 168,000.00 Income
| Fundamental Research on New Technology of Composite Iron Coke Low Carbon Ironmaking Furnace |
| The Second Batch of 2021 Liaoning |
Funds on Central Government Guidingthe Development of Local Science andTechnology
300,000.00 300,000.00 Income
Manufacturing Strong Province
300,000.00 300,000.00 IncomeMunicipal Enterprise Operation Class
| 2022 Digital Liaoning Intellectual |
| Patent Navigation Project Funding |
Grant
200,000.00 200,000.00 Income
Intelligence Design of Aviation CriticalMaterials (Research Institute)
376,000.00 376,000.00 Income
Workshop Program
100,000.00
| 2022 Annual Provincial Skill Master |
67,743.97
32,256.03
IncomeGovernment Grants Received by SteelProducts R&D Institute
525,000.00
525,000.00
IncomeSteel Plant Blast Furnace #5 Group &
Desulfurization/Denitrification Project
20,460,000.00
| 4B Coke Oven Flue Gas |
4,092,000.00
16,368,000.00
Assets
Steelmaking Plant)
14,610,000.00
| Converter Roof Hood Tertiary Dust Removal Upgrade (BF #4/5/6 |
2,922,000.00
11,688,000.00
Assets
Control Retrofit (Converter Plant)
9,663,000.00
| Hot Metal Pretreatment Station Dust |
1,932,600.00
7,730,400.00
AssetsHot Blast Stove Desulfurization-
(Ironmaking Complex)
15,267,000.00
| Denitrification System Installation |
15,267,000.00
Assets
| Liaoning Provincial Standardization |
Subsidy Fund
10,000.00
10,000.00
-
Income
| 2024 Manufacturing Talent |
Development Support Initiative
250,000.00
250,000.00
IncomeR&D on RE-Alloyed High-StrengthFatigue-Resistant Wheel Steel
111,000.00
111,000.00
Income
Hengda
Subsidy
38,057,428.00
| Logistics Park Land Use |
19,009,956.00
19,047,472.00
AssetsTotal 174,142,383.18
61,766,472.38
61,989,768.09
173,919,087.47
(32) Share capital
Items 2023/12/31
| Increase/decrease (+ , - ) | 2024/12/31 |
Issuin
g ofnew
Bonusshares
Transferred
fromreserves
Others Subtotal
| share | |||||||
| Total shares | 4,108,219,302.00 | 8,855.00 | 8,855.00 | 4,108,228,157.00 |
Note: The increase was due to the convertible bonds issued by the Company were convertedinto 8,855.00 shares of common stock during the period, and the remaining balance of the facevalue of the Company's convertible bonds as of December 31, 2024 was RMB5,630,985,100.00Yuan (56,309,851.00 bonds). For details, please refer to Note 5. (29) Bonds payable.
(33) Other equity instruments
Changes in financial instruments such as preferred stocks and perpetual bonds issued at the end of the period
Items
| 2023/12/31 | Increase | Decrease | 2024/12/31 | ||||
| Number | Book value | Number | Book value | Number | Book value | Number | Book value |
Convertible corporate
56,310,241.00 947,858,134.16 390.00 7,939.13 56,309,851.00 947,850,195.03
| bonds | ||||||||
| Total | 56,310,241.00 | 947,858,134.16 | 390.00 | 7,939.13 | 56,309,851.00 | 947,850,195.03 |
Notes: The decrease during the current period was due to convertible bonds issued by the Company have been partially converted into common stock for an aggregateof RMB39,000.00 (390 bonds), and the remaining balance of the face value of the convertible bonds as of December 31, 2024 was RMB55,630,985,100.00 Yuan(56,309,851.00 bonds). For details, please refer to Note 5. (29) Bonds payable.
(34) Capital reserves
| Items | 2023/12/31 | Increase | Decrease | 2024/12/31 |
Capital (share)
13,306,308,402.10 25,840.89 196,619,544.86 13,109,714,698.13Other capital
| premium |
| reserves |
115,917,468.82 115,917,468.82
| Total | 13,422,225,870.92 | 25,840.89 | 196,619,544.86 | 13,225,632,166.95 |
Notes:
1. The increase was due to the conversion of A-share convertible bonds issued by the
Company into A-share common stock during the period, as described in Note 5 (29)Bonds payable.
2. The decrease was due to the company's acquisition of North Hengda Logistics Co., Ltd.,
which was a merger of companies under common control.
(35) Other comprehensive income
Items 2023/12/31
2024/12/31Amountsbeforecorporateincome tax
Less: amountrecognized inOCI in theprevious periodtransfer to PLin current
| Current period | ||
| period | ||
Less: income tax
Income after
taxattributable toowners of the
Company
Income aftertaxattributable tonon-controlling
interests
Less: transferto retainearnings
1．Items cannot be reclassified
-50,371,341.88 -41,036,785.20 1,999,069.54 -43,035,854.74 -93,407,196.62
including: Changes in fair valueof investments in other equity
| into profit or loss. |
| instruments |
Other comprehensiveincome under the equity methodcannot be reclassified into profit
Items 2023/12/31
2024/12/31Amountsbeforecorporateincome tax
Less: amountrecognized in
OCI in theprevious periodtransfer to PL
in current
| Current period | ||
| period | ||
Less: income tax
Income after
taxattributable toowners of the
Company
Income aftertaxattributable to
non-controlling
interests
Less: transfer
to retainearnings
Changes in fair value ofinvestments in other equity
-50,371,341.88 -41,036,785.20 1,999,069.54 -43,035,854.74 -93,407,196.62
Changes in fair value of
| instruments |
| company's credit risk |
| Other |
2．Items can be reclassified
| into profit or loss | ||||||||
| Total | -50,371,341.88 | -41,036,785.20 | 1,999,069.54 | -43,035,854.74 | -93,407,196.62 |
(36) Special Reserves
| Items | 2023/12/31 | Increase | Decrease | 2024/12/31 |
| Safety production cost |
163,055.04 72,180,947.90 71,534,353.29 809,649.65Total 163,055.04 72,180,947.90 71,534,353.29 809,649.65
(37) Surplus Reserves
| Items | 2023/12/31 | Increase | Decrease | 2024/12/31 |
Statutory surplus
1,195,116,522.37 1,195,116,522.37
| reserves | ||||
| Total | 1,195,116,522.37 | 1,195,116,522.37 |
(38) Undistributed Profits
| Items | Current period | Previous period |
Before adjustments: undistributed profits at last
-2,414,685,928.92 -720,559,670.73Adjustments of the beginning distributed profits
| year-end |
| (increase + / decease -) |
26,745,438.81
-2,414,685,928.92 -693,814,231.92Add: undistributed profit
| After adjustments: undistributed profit at this year-beginning |
| belonging to parent company |
-5,037,271,398.28 -1,720,871,697.00
| Less: Statutory surplus reserves | ||
| Discretionary reserves | ||
| General risk reserves | ||
| Common shares dividend payable | 45,054,305.70 |
Common shares dividend transferred to paid-in
| capital | ||
| Ending balance of undistributed profits | -7,497,011,632.90 | -2,414,685,928.92 |
The details of Adjustments of the beginning distributed profits:
The change in the scope of consolidation due to the merger of companies under common controlaffected the retained earnings at the beginning of the year by RMB 26,745,438.81.
(39) Operating income and operating cost
1. Operating income and operating cost
Items
| Current period | Previous period | ||
| Revenue | Cost | Revenue | Cost |
Principal
50,512,152,677.69 53,926,439,230.70 56,816,581,034.64 57,338,067,687.30Other
| business |
| business |
754,208,823.53 767,317,574.73 1,140,720,682.38 1,112,281,082.13
| Total | 51,266,361,501.22 | 54,693,756,805.43 | 57,957,301,717.02 | 58,450,348,769.43 |
2. Details about operating income and operating cost
| Item | Principal business Revenue | Principal business Cost | Other business Revenue | Other business Cost |
Classification by thetime of commodity
Including: recognizeat a certain point in
transfertime
50,512,152,677.69 53,926,439,230.70 747,028,972.63 764,941,783.53-Recognizeover a certain period
timeof time
7,179,850.90 2,375,791.20
of timeTotal
| Total | 50,512,152,677.69 | 53,926,439,230.70 | 754,208,823.53 | 767,317,574.73 |
Classification by
27,942,407,986.74 28,743,063,625.90 422,131,300.06 434,178,194.37
business areaIncluding
：
| Domestic | 41,406,346,909.19 | 44,528,902,766.42 | 754,208,823.53 | 767,317,574.73 |
Abroad
| Abroad | 9,105,805,768.50 | 9,397,536,464.28 |
Total
| Total | 50,512,152,677.69 | 53,926,439,230.70 | 754,208,823.53 | 767,317,574.73 |
(40) Tax and surcharges
| Items | Current period | Previous period |
| Environmental tax | 25,266,354.57 | 38,630,331.48 |
| City maintenance and construction tax | 10,385,897.62 | 11,150,706.61 |
| Educational surcharge | 7,465,694.70 | 8,101,593.37 |
| Resource Tax | 750,000.00 | |
| Housing property tax | 85,712,608.51 | 83,490,037.56 |
| Land use right tax | 14,382,618.16 | 13,582,798.86 |
| Vehicle and vessel tax | 224,158.74 | 221,617.12 |
| Stamp duty | 58,834,787.91 | 60,062,008.36 |
| Others | 21,247.15 | 482,887.50 |
| Total | 203,043,367.36 | 215,721,980.86 |
(41) Selling and distribution expenses
| Items | Current period | Previous period |
| Import and export agency fee | 52,584,810.12 | 41,191,981.29 |
| Salary and benefits | 67,395,074.92 | 79,109,440.68 |
| Storage and warehousing fee | 1,977,289.68 | 6,434,329.15 |
| Others | 20,681,443.05 | 22,923,349.16 |
| Total | 142,638,617.77 | 149,659,100.28 |
(42) General and administrative expenses
| Items | Current period | Previous period |
| Salary and benefits | 351,493,964.20 | 348,794,437.95 |
| Insurance fee | 12,995,462.13 | 12,429,399.87 |
| Depreciation | 55,331,155.82 | 41,188,990.43 |
| Repair expense | 4,037,864.04 | 2,070,654.97 |
| Professional service expenses | 13,588,178.36 | 11,050,833.74 |
| Office Expenses | 1,330,341.46 | 1,260,483.68 |
| Business Travel Expenses | 2,905,590.74 | 2,908,581.66 |
| Greening Fee | 2,563,843.56 | 9,035,946.93 |
| Items | Current period | Previous period |
| Others | 258,542,011.52 | 190,938,087.82 |
| Total | 702,788,411.83 | 619,677,417.05 |
(43) Research and development expenses
| Items | Current period | Previous period |
Depreciation, materials and
86,415,509.29 81,247,560.73
| compensation, etc. | ||
| Total | 86,415,509.29 | 81,247,560.73 |
(44) Financial expenses
| Items | Current period | Previous period |
| Interest expenses | 384,713,981.73 | 415,219,929.72 |
including: Interest expenses for lease
62,948,951.58 55,152,158.88
| liabilities | ||
| Less: Interest income | 43,019,766.05 | 56,283,070.97 |
| Exchange losses | -112,286,393.26 | -59,468,641.72 |
| Others | 10,923,494.40 | 8,564,825.20 |
| Total | 240,331,316.82 | 308,033,042.23 |
(45) Other income
Items Current period
Previous
| period | ||
| Withholding fee income | 401,253.23 | 919,436.96 |
| VAT tax relief | 48,812,224.61 | 394,898.00 |
| Tax refund | 86,963,574.36 | 27,685,686.22 |
| Industrial Economy Stabilization and Growth Incentive Fund | 50,000.00 |
Special Incentive Funds for Business Stable development
2,184,600.00
| Measures | ||
| Hengda Logistics Park Land Subsidy | 19,009,956.00 | 21,309,956.00 |
| Science & Technology Funds | 300,000.00 |
Items Current period
Previous
| period | ||
| Fiscal Support Funds | 110,000.00 | |
| High-tech Enterprise Grant | 100,000.00 | |
| Employee Retention and Training Subsidy for Labor | 2,358.49 | |
| Development of Gen-3 AHSS for Vehicles | 580,000.00 | 580,000.00 |
Desulfurization and Denitrification Project of Coal-fired Boiler
600,000.00 600,000.00Advanced Treatment Project of Carbon Fiber Wastewater in
| in High-pressure Workshop of Bengang Power Plant |
| Dongfeng Plant Area of Plate Coking Plant |
1,900,000.00 1,900,000.00Special Tank Passivation Project under Bai-Qian-Wan Talent
50,000.00Second Sintering Finishing Dust Removal Ultra-low Emission
| Program |
| Reconstruction Project |
410,000.00 410,000.00Plate factory area converter Gas Recovery and Efficiency
2,420,000.00 2,420,000.00
| Improvement Project | ||
| Central Government Environmental Protection Award Fund | 21,088,000.00 | 21,088,000.00 |
2021 Intellectual Manufacturing Strong Province Special Fund（
）
960,000.00 960,000.002023 Automatic-Approval Special Fund (National Green DesignProduct-- Hot-Rolled High-Strength Steel Sheets/Strips for
500,000.00
| Automotive Applications in 2022) | ||
| 2022 Intellectual Manufacturing Strong Province Special Fund | 20,000,000.00 | |
| Xingliao Talent Program Government Grant | 46,500.00 | 113,500.00 |
Mechanism and Control of Rare Earth Oxysulfides on
70,200.00 212,228.302022 Liaoning Provincial Natural Science Foundation Program
| Plasticization Behavior in Automotive Steels |
| Funds |
1,600.00Design and Physicochemical Properties of Metallurgical Slag
15,175.50 22,651.002023 Intellectual Manufacturing Province Initiative (Benxi Steel
| Systems for Rare Earth Steelmaking |
| Technology Center Innovation Capability Enhancement) |
1,700,000.002021 Municipal-Level Skills Master Workstation Fee 56,454.88 81.03
Items Current period
Previous
2020 Ecological Civilization Construction Special Project
| period | ||
| (Special Steel EAF Upgrading Project) |
4,000,000.002021 Intellectual Manufacturing Strong Province Special Fund 1,620,000.00Benxi Steel Automotive Sheet Engineering Laboratory
-745,133.802020 Provincial-Level Skills Master Workstation Fee 63,799.162022 Provincial-Level Skills Master Workstation Fee 67,743.97Flue Gas Desulfurization and Denitrification Project for No.5
Construction ProjectFurnace Group & 4B Coke Oven at Plate Ironmaking Plant
4,092,000.00Triple Dust Removal Retrofit for Roof Hoods of No.4/5/6
| Furnace Group & 4B Coke Oven at Plate Ironmaking Plant |
| Converters at Plate Steelmaking Plant |
2,922,000.00Dust Removal Retrofit for Hot Metal Pretreatment Station of
1,932,600.00
| Steelmaking Converters | ||
| Liaoning Provincial Standardization Subsidy | 10,000.00 | |
| 2019 Provincial-Level Skills Master Workstation Fee | 100,000.00 | |
| Total | 200,140,947.91 | 100,870,396.00 |
(46) Investment income
| Items | Current period | Previous period |
| Income on long-term equity investment by equity method | -1,497,124.69 | -1,085,968.20 |
| Income on long-term equity investment by cost method | ||
| Income on disposal of long-term equity investment | -294,462.57 | |
| Gain from debt restructuring | 6,496,818.35 | 5,179,346.89 |
| Others | -47,967,315.58 | -6,604,705.25 |
| Total | -42,967,621.92 | -2,805,789.13 |
(47) Credit impairment loss
| Items | Current period | Previous period |
| Loss from bad debts of account receivable | -51,156,620.60 | -21,955,575.63 |
| Loss from bad debts of other receivables | 1,013,615.40 | 11,934,237.01 |
| Total | -50,143,005.20 | -10,021,338.62 |
(48) Asset impairment loss
| Items | Current period | Previous period |
Inventory and contract fulfillment cost
278,486,334.42 15,745,868.44
| impairment loss | ||
| Fixed assets impairment loss | 19,593,534.81 | |
| Total | 278,486,334.42 | 35,339,403.25 |
(49) Assets disposal gains
Items Current period Previous period
The amount recognized in non-
| recurring profit | |||
| Fixed assets | 13,020,778.49 | 298,940,955.41 | 13,020,778.49 |
| Total | 13,020,778.49 | 298,940,955.41 | 13,020,778.49 |
(50) Non-operating income
Items Current period Previous period
The amountrecognized in non-
Non-current assets scrapped
| recurring profit | ||
| gains |
3,307,408.92 22,695,633.31 3,307,408.92
| Donation | 116,390.00 |
Government grants unrelated to
Compensation for breach of
| operational activities |
| contract |
8,649,121.97 2,808,857.09 8,649,121.97Unpayable accounts payable
208,933.55 10,136,697.80 208,933.55
Items Current period Previous period
The amountrecognized in non-
| recurring profit | |||
| Inventory Surplus Gains | |||
| Others | 33,623,658.14 | 7,651,073.78 | 33,623,658.14 |
| Total | 45,789,122.58 | 43,408,651.98 | 45,789,122.58 |
(51) Non-operating expense
Items Current period Previous period
The amountrecognized in non-
Non-current assets scrapped
| recurring profit | ||
| loss |
52,327,212.31 88,675,217.02 52,327,212.31
| Donation |
Compensation, liquidated
1,544,793.57 5,907,021.85 1,544,793.57
| damages and fines | |||
| Others | 835,992.86 | 516,843.20 | 835,992.86 |
| Total | 54,707,998.74 | 95,099,082.07 | 54,707,998.74 |
(52) Income tax expenses
1. Income tax expense
| Items | Current period | Previous period |
| Income tax payable for the current year | 73,650,531.92 | 90,256,101.15 |
| Deferred income tax | 16,786,257.16 | 10,723,190.66 |
| Total | 90,436,789.08 | 100,979,291.81 |
2. Accounting profit and income tax expense adjustment process
| Items | Current period |
| Total profit | -4,869,680,628.18 |
Income tax expense calculated according to the official or applicable tax
-730,452,094.23
| Items | Current period |
| Effect of different tax rates applied by subsidiaries | 12,067,535.66 |
| Effect of adjustment of the income tax expense of prior period | -25,199.16 |
| Effect of non-taxable income | -10,032,409.88 |
| Effect of undeductible costs, expenses or losses | -52,093,340.99 |
Effect of use of deductible losses of unrecognized deferred tax asset of
-1,372,496.13Effect of deductible temporary differences or deductible losses of
| prior period |
| unrecognized deferred tax assets of current period |
857,881,224.03Effect of tax rate changes on the opening balance of deferred tax
48,619,985.52
| assets/liabilities | |
| Others | -34,156,415.74 |
| Income tax expenses | 90,436,789.08 |
(53) Notes of statement of cash flows
1. Cash related to operating activities
（1）Cash received related to other operating activities
| Items | Current period | Previous period |
Collection of current accounts and advance
20,707,880.77 32,840,546.95
| payment on behalf | ||
| Interest income | 43,019,928.42 | 56,265,090.97 |
| Special subsidy income | 61,603,389.34 | 149,050,517.00 |
| Non-operating income | 45,108,931.60 | 8,484,226.41 |
| Others | 72,901,959.17 | 56,815,488.47 |
| Total | 243,342,089.30 | 303,455,869.80 |
（2）Cash paid related to other operating activities
| Items | Current period | Previous period |
| Current accounts | 31,632,625.15 | 33,794,608.51 |
| Administrative expenses | 160,290,483.72 | 88,066,781.99 |
| Selling expenses | 43,283,792.38 | 9,993,368.25 |
| Items | Current period | Previous period |
| Charges | 3,227,037.36 | 4,815,379.76 |
| Others | 167,670,609.80 | 296,499,108.11 |
| Total | 406,104,548.41 | 433,169,246.62 |
2. Cash related to financing activities
（1）Other cash received in relation to financing activities
Item
| Current period | Previous period | |
| Notes, letter of guarantee, and letter of credit margins |
3,808,123,889.76 1,128,377,111.10
80,017,980.00
| Recovery of short-term borrowing funds for designated payments | ||
| Total | 3,808,123,889.76 | 1,208,395,091.10 |
（2）Other cash paid in relation to financing activities
Item
| Current period | Previous period | |
| Notes, letter of guarantee, and letter of credit margins |
4,871,226,556.86 1,982,167,947.91
97,811,412.73
| Short-term borrowing funds for designated payments | ||
| Lease payments | 68,842,727.36 | 40,645,381.40 |
| Total | 4,940,069,284.22 | 2,120,624,742.04 |
(54) Supplementary details of statement of cash flows
1. Supplementary details for statement of cash flows
| Items | Current period | Previous period |
1. A reconciliation of net profit to cash flows from
| operating activities: | ||
| Net profit | -4,960,117,417.26 | -1,648,368,377.81 |
| Add: Credit impairment loss | -50,143,005.20 | -10,021,338.62 |
| Asset impairment loss | 278,486,334.42 | 35,339,403.25 |
| Depreciation of fixed assets | 1,635,677,342.74 | 1,633,702,512.74 |
| Depletion of oil and gas assets | ||
| Depreciation of right of use assets | 77,920,658.71 | 60,374,534.52 |
| Items | Current period | Previous period |
| Amortization of intangible assets | 9,634,760.52 | 9,086,897.28 |
| Long-term deferred expenses |
Losses proceeds from disposal of PPE, intangibleassets and other long-term assets (Earnings
－
| ”) |
-13,020,778.49 -298,940,955.41Scrapped losses from fixed assets (Earnings
－
| ”) |
49,019,803.39 65,979,583.71
－
| ”) | ||
| Financial expenses (Earnings marked“ |
－
| ”) | 272,427,588.47 | 355,751,288.00 |
| Investment losses (Earnings marked“ |
－
| ”) | 42,967,621.92 | 2,805,789.13 |
| Deferred tax assets reduction (Addition marked“ |
－
| ”) | 93,801,445.51 | 25,816,824.26 |
Deferred tax liabilities increased (Reduction
－
| ”) |
-77,015,188.35 -15,093,633.60
－
| ”) | 157,980,745.75 | 765,997,477.35 |
Operating receivable items reduction (Addition
－
| ”) |
1,927,753,242.95 -61,764,765.72
－
| ") | 1,654,268,244.56 | 3,427,623,500.88 |
| Others | 646,594.61 | -2,054,858.73 |
| Net cash flows generated from operating activities | 1,100,287,994.25 | 4,346,233,881.23 |
2. Payments of investing and financing activities not
| involving cash: | ||
| Liabilities transferred to capital | ||
| Convertible bonds due within one year | ||
| Fixed assets financed by leasing | ||
| 3. The net increase in cash and cash equivalents: | ||
| Ending balance of cash | 1,590,205,218.91 | 1,199,685,408.38 |
| Less: Beginning balance of cash | 1,199,685,408.38 | 1,296,663,626.79 |
| Add: Ending balance of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| The net increase in cash and cash equivalents | 390,519,810.53 | -96,978,218.41 |
2. The structure of cash and cash equivalents
| Items | Current period | Previous period |
| 1. Cash | 1,590,205,218.91 | 1,199,685,408.38 |
| Including: Cash on hand | ||
| Bank deposits available on demand | 1,590,205,218.91 | 1,199,685,408.38 |
| 2. Cash equivalents | 1,590,205,218.91 | 1,199,685,408.38 |
Including: Cash and cash equivalents limited to use
by the parent company of other subsidiary
(55) Foreign currency monetary items
1. Foreign currency monetary items
Item
Ending balance in
in the groupforeign currency
Exchange rate
Ending balance
| foreign currency | translated to RMB | ||
| Cash and cash equivalents | 326,240,125.79 | ||
| Including: USD | 45,384,220.89 | 7.1884 | 326,239,933.43 |
| EUR | |||
| HKD | 207.73 | 0.9260 | 192.36 |
Non-current liabilities due
1,070,731.20
| within one year | |||
| Including: USD | |||
| JPY | 23,176,000.00 | 0.0462 | 1,070,731.20 |
| Long-term loans | 2,141,462.40 | ||
| Including: USD | |||
| JPY | 46,352,000.00 | 0.0462 | 2,141,462.40 |
8. Changes in the scope of consolidation
(1) Business combination under common control
1. Business combination under common control that occurred during the current period
Acquiree
of equityacquired
underbusiness
| combination |
Basis for businesscombination undercommon control
Date ofacquisition
Basis fordetermining theacquisition date
Income of theacquiree from thebeginning of thecurrent period toacquisition date
acquiree fromthe beginning of
the current
period to
| acquisition date |
Income of theacquiree duringthe comparative
period
Net profit of theacquiree duringthe comparative
periodNorth Hengda
100.00%
Belongs to Bengang
| Logistics Co., Ltd. | Group Co., Ltd. |
31 Dec
Obtain control of
| 2024 | acquiree |
3,489,660,655.62 16,120,746.07 4,195,490,104.86 21,702,466.92
2. Cost of acquisition
| North Hengda Logistics Co., Ltd. | |
| Cash | 196,619,544.86 |
| Book value of non-cash assets | |
| Book value of debt issued or assumed | |
| Face value of equity securities issued | |
| Contingent consideration | |
| Total cost of acquisition | 196,619,544.86 |
3. Book value of the acquiree's assets and liabilities on the date of acquisition
Items
| North Hengda Logistics Co., Ltd. | ||
| Date of acquisition | End of previous period | |
| Assets: | 454,806,458.37 | 439,545,944.50 |
| Cash and cash equivalents | 3,418,003.07 | 15,403,313.71 |
| Notes receivable | 847,348.53 | |
| Accounts receivable | 16,199,375.32 | 11,426,487.15 |
| Prepayments | 113,335,267.42 | 95,335,134.63 |
| Other receivables | 156,055.40 | 153,596.76 |
| Inventory | 67,607,758.74 | 61,178,879.63 |
| Other current assets | 711,035.19 | |
| Fixed assets | 147,903,478.23 | 146,017,923.09 |
| Intangible assets | 105,475,485.00 | 107,797,881.00 |
| Other non-current assets | 1,385,380.00 | |
| Liabilities: | 285,144,589.18 | 240,989,826.88 |
| Accounts payable | 5,631,398.91 | 4,958,444.25 |
| Notes payable | 5,946,820.98 | |
| Prepayments | 64,831.80 | 143,119.29 |
| Contract liabilities | 103,961,914.19 | 70,738,069.86 |
| Employee benefits payable | 259,340.04 | 150,551.83 |
| Taxes payable | 1,051,704.41 | 2,236,126.19 |
| Other accounts payable | 143,566,519.88 | 111,089,639.57 |
| Other current liabilities | 11,561,407.95 | 7,669,626.91 |
Items
| North Hengda Logistics Co., Ltd. | ||
| Date of acquisition | End of previous period | |
| Deferred income | 19,047,472.00 | 38,057,428.00 |
| Net assets | 169,661,869.19 | 198,556,117.62 |
Less: Non-controlling shareholders'
| equity | ||
| Net assets acquired | 169,661,869.19 | 198,556,117.62 |
9. Interests in other entities
(1) Equity in subsidiaries
1. Constitution of enterprise group
Name ofsubsidiary
Registered
Capital
Principalplace ofbusiness
Registration place
Nature ofBusiness
Shareholding
Acquisitionmethod
Dire
| ratio(%) | |
| ct | |
Indire
GuangzhouBengang Steel& Iron Trading
| ct | ||
| Co., Ltd |
200 million
Guangzhou
Guangzho
u
Sales 100 EstablishmentShanghaiBengangMetallurgyScience andTechnology
230 million Shanghai Shanghai Sales 100 EstablishmentDalianBenruitongAutomobileMaterialTechnology
| Co., Ltd |
| Co., Ltd |
100 million Dalian Dalian
Manufacturing
65 EstablishmentBengangPOSCO Cold-rolled SheetCo., Ltd.
1.92 billion Benxi Benxi
Manufacturi
ng
combination
undercommon
| control |
ChangchunBengang Steel& Iron TradingCo., Ltd.
30 million
Changchun
Changchu
n
Sales 100
combination
undercommon
| control |
Yantai BengangSteel Sales Co.,Ltd.
200 million Yantai Yantai Sales 100
combination
undercommon
| control |
TianjinBengang Steel
200 million Tianjin Tianjin Sales 100
combination
| under |
Name ofsubsidiary
RegisteredCapital
Principalplace ofbusiness
Registration place
Nature ofBusiness
Shareholding
Acquisition
method
Dire
| ratio(%) | |
| ct | |
Indire
Trading Co.,
| ct | |||
| Ltd. | common |
control
Steel & Iron
| Sales Co., Ltd. |
30 million Benxi Benxi Sales 100 EstablishmentShenyangBengangMetallurgyScience andTechnology
200 million
Shenyang
Shenyang Sales 100 Establishment
North HengdaLogistics Co.,Ltd.
150 million Benxi Benxi
Manufacturi
ng
| Co., Ltd | ||
| Business |
combination
undercommon
2. Important non-wholly owned subsidiaries
Name of the subsidiaries
Proportion
of non-controlling
interests
Profits and losses
attributing tonon-controllingshareholders
controlDividend
declared todistribute tonon-controlling
| shareholders |
Endingbalance of non-
controlling
| interests | ||||
| Bengang POSCO Cold-rolled Sheet Co., Ltd. | 25.00% | 75,232,486.43 | 54,632,794.65 | 596,689,027.87 |
3. Key financial information of significant but not wholly-owned subsidiaries
Name of thesubsidiaries
| 2024/12/31 | 2023/12/31 |
Current assets
Non-currentassets
Total assets
Currentliabilities
current
| liabilities |
Total liabilities Current assets
Non-current
assets
Total assets
Currentliabilities
current
| liabilities |
Total liabilities
POSCO Cold-rolled Sheet Co.,
| Ltd. |
6,390,756,526.72 986,052,997.62 7,376,809,524.34 4,990,053,412.86 4,990,053,412.86 3,314,945,506.13 958,741,994.50 4,273,687,500.63 1,969,330,156.26 1,969,330,156.26
Name of the subsidiaries
| Current period | Previous period |
Operating
Net profit
Totalcomprehensiveincome
Cash flow fromoperatingactivities
Operating
| income | income |
Net profit
Totalcomprehensiveincome
Cash flow from
operatingactivitiesBengang POSCO Cold-rolled Sheet Co., Ltd.8,387,472,486.78 300,929,945.71 300,929,945.71 400,460,284.37 8,939,304,737.19 273,163,973.25 273,163,973.25
-
(2) Interests in joint ventures or associated enterprises
1. Summarized financial information of insignificant joint ventures and associates
2024/12/31 or current
2023/12/31 or previous
| period | period | |
| Associated enterprises: | ||
| Total book value of investments | 45,413,221.72 | 46,910,346.41 |
Total of the following items calculated
| based on shareholding ratio | ||
| -Net profit | -1,497,124.69 | -1,085,968.20 |
| -Other comprehensive income | ||
| -Total comprehensive income | -1,497,124.69 | -1,085,968.20 |
10. Government Subsidies
(1) Types, amounts and reporting items of government subsidies
1. Government grants included in current profit or loss
| Accounting subjects | Current period | Previous period |
Other income
| Other income | 150,827,470.07 | 99,556,061.04 |
2. Liabilities involving government subsidies
Liabilities 2023/12/31 Addition
recognized innon-operatingincome during
the current
| period |
Amountsrecognized inother income
during thecurrent period
Offset costs orexpensesduring thecurrent period
Otherchanges
2024/12/31
Asset-related/income-
relatedDeferred
174,142,383.18 61,766,472.38 61,989,768.09 173,919,087.47
Asset-related/income-
| income | related |
11. Risks associated with financial instruments
(1) Various risks arising from financial instruments
The Company's principal financial instruments include other equity instrumentsinvestments, borrowings, receivables, payables, etc. A detailed description of each financialinstrument is set out in note VI. The risks associated with these financial instruments andthe risk management policies adopted by the Company to mitigate these risks are describedbelow. The Company's management manages and monitors these exposures to ensure thatthese risks are contained within defined limits.The objective of the Company's risk management is to strike an appropriate balancebetween risk and return, minimize the negative impact of risk on the Company's operatingresults, and maximize the benefits of shareholders and other equity investors. Based on thisrisk management objective, the Company's basic risk management strategy is to determineand analyze the various risks faced by the company, establish an appropriate risk tolerancebottom line and risk management, and timely and reliable supervision of various risks, tocontrol the risks within the limited scope.
1. Credit Risk
As of December 31, 2024, the largest credit risk exposure that may cause financial lossesto the Company mainly comes from the losses of the Company's financial assets caused bythe failure of the other party to the contract to perform its obligations, including:
The carrying amount of financial assets recognized in the consolidated balance sheet; forfinancial instruments measured at fair value, the carrying value reflects its risk exposure,but not the maximum risk exposure, and its maximum risk exposure will change with futurechanges in fair value.In order to reduce credit risk, the Company has established a special department todetermine credit limits, conduct credit approval, and implement other monitoringprocedures to ensure that necessary measures are taken to recover overdue debts. In addition,the Company reviews the recovery of each single receivable on each balance sheet date toensure that sufficient bad debt reserves are set aside for unrecoverable amounts. Therefore,the management of the Company believes that the credit risk borne by the Company hasbeen greatly reduced.The Company's working capital is deposited in financial institutions with higher creditratings and therefore the credit risk of working capital is lower.
2. Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligationson the maturity date. The Company manages liquidity risk by ensuring that it has sufficientliquidity to meet its obligations as they mature without causing unacceptable losses ordamaging the reputation of the business. The Company regularly analyzes the structure andmaturity of its liabilities to ensure that it has sufficient funds. The Company's managementmonitors the use of bank borrowings and ensures compliance with loan agreements. It alsonegotiates financing with financial institutions to maintain a certain credit line and reduceliquidity risk.The Company's various financial liabilities are listed as follows by maturity date withundiscounted contractual cash flows:
Items
Immediate
| 2024/12/31 | |
| repayment | |
Within 1 year 1-2 years 2-5 years Over 5 years
Total undiscounted
Book valueShort-term
| contract amount | ||
| loans |
371,055,490.50 371,055,490.50 371,055,490.50Notes
12,982,703,669.86 12,982,703,669.86 12,982,703,669.86Accounts
| payable |
| payable |
2,680,864,210.15 61,748,259.48 19,146,969.73 2,761,759,439.36 2,761,759,439.36Other
1,703,827,958.01 394,969,845.27 255,896,396.73 2,354,694,200.01 2,354,694,200.01
| payables |
| Long-term |
loans(includinglong-termloans duewithin one
805,270,731.20 922,270,731.20 1,969,670,731.20 3,697,212,193.60 3,697,212,193.60
| year) |
| Lease |
liabilities(includingleaseliabilitiesdue within
118,242,710.82 109,583,860.29 782,383,488.53 741,944,237.69 1,752,154,297.33 1,752,154,297.33
| one year) | |||||||
| Bonds payable | 106,989,474.64 | 5,569,899,459.53 | 5,676,888,934.17 | 5,676,888,934.17 |
Items
Immediate
| 2024/12/31 | |
| repayment | |
Within 1 year 1-2 years 2-5 years Over 5 years
Total undiscounted
Book value
| contract amount | ||
| (including |
bondspayable duewithin one
| year) | |||||||
| Total | 18,768,954,245.18 | 7,058,472,155.77 | 3,027,097,586.19 | 741,944,237.69 | 29,596,468,224.83 | 29,596,468,224.83 |
Items
Immediate
| 2023/12/31 | |
| repayment | |
Within 1 year 1-2 years 2-5 years Over 5 years
Total undiscounted
Book valueShort-term
| contract amount | ||
| loans |
328,000,000.00 328,000,000.00 328,000,000.00Notes
10,370,940,819.87 10,370,940,819.87 10,370,940,819.87Accounts
| payable |
| payable |
2,782,483,183.30 9,101,689.70 17,704,689.55 2,809,289,562.55 2,809,289,562.55Other
1,359,684,122.47 359,046,485.01 8,349,000.00 1,727,079,607.48 1,727,079,607.48
| payables |
| Long-term |
loans
562,310,473.60 802,070,731.20 921,655,969.60 2,286,037,174.40 2,286,037,174.40
Items
Immediate
| 2023/12/31 | |
| repayment | |
Within 1 year 1-2 years 2-5 years Over 5 years
Total undiscounted
Book value
| contract amount | ||
| long-term |
loans duewithin one
| year) |
| Lease |
liabilities(includingleaseliabilitiesdue within
41,921,209.72 44,789,055.69 625,123,027.34 672,515,169.42 1,384,348,462.17 1,384,348,462.17
| one year) |
| Bonds |
payable(includingbondspayable duewithin one
81,650,008.44 106,989,474.64 5,344,392,201.74 5,533,031,684.82 5,533,031,684.82
| year) | |||||||
| Total | 15,526,989,817.40 | 1,321,997,436.24 | 6,917,224,888.23 | 672,515,169.42 | 24,438,727,311.29 | 24,438,727,311.29 |
3. Market Risk
Market risk of financial instruments refers to the risk that the fair value or futurecash flows of financial instruments fluctuate due to changes in market prices,including exchange rate risk, interest rate risk and other price risks.
（1）Interest rate risk
Interest rate risk refers to the risk that the fair value of a financial instrument or futurecash flows will fluctuate due to changes in market interest rates.The interest rate risk faced by the Company mainly arises from floating-rate bankdeposits and floating-rate loans, which expose the Company to cash flow interestrate risk. The Company has not yet formulated a policy to manage its interest raterisk, but the management will carefully select financing methods, combining fixedand floating rates, and combining short-term debt with long-term debt. Use effectiveinterest rate risk management methods to closely monitor interest rate risks, controlthe scale of floating rate loans, and use interest rate swaps when necessary to achievethe expected interest rate structure.
（2）Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flows offinancial instruments will fluctuate due to changes in foreign exchange rates.The exchange rate risk borne by the Company is mainly related to the US dollar,Hong Kong dollar, Japanese yen and euro. Except for the Company's small amountof raw material purchases and finished product sales settled in US dollars, HongKong dollars, Japanese yen and euros, the Company's other major business activitiesare settled in RMB. As of December 31, 2024, the assets or liabilities described inthe following table are the balances of US dollars, Hong Kong dollars, Japanese yenand euros shown in the items:
| Items | 2024/12/31 |
2023/12/31Cash and cash equivalents - USD
45,384,220.89 81,951,964.90
Cash and cash equivalents - USDCash and cash equivalents - HKD
| Cash and cash equivalents - HKD | 207.73 | 5,992,191.45 |
Cash and cash equivalents - EUR
408,004.95
Cash and cash equivalents - EURNon-current liabilities due within one
year - JPY
23,176,000.00 23,176,000.00
Non-current liabilities due within one
year - JPYLong-term loans - JPY
46,352,000.00 69,528,000.00
(2) Transfer of financial assets
1. Transfer of financial assets
Financial assettransfer method
Information of
| Transferred financial assets | derecognition |
Basis ofderecognition
| Nature | Amount |
Billendorsement/billdiscount
NotesReceivable
316,325,335.70 Not derecognized
all of its risks andrewards, including thedefault risk associated
| with it | ||
| Bill |
endorsement/bill
ReceivablesFinancing
3,181,702,865.55 Derecognized
| discount | Almost all of its risks |
and rewards have
| been transferred | ||||
| Total | 3,498,028,201.25 |
Notes to the basis of derecognition: As of December 31, 2024, the maturity date ofaccounts receivable financing is 1 to 12 months. According to the relevant provisionsof the Bills of Exchange Law, if the accepting bank refuses to pay, the holder has theright to claim against the Company. The Company believes that the Company hastransferred almost all its risks and rewards, and therefore, fully terminate therecognition of its and related settled accounts payable and confirm the discount fees.
2. Financial assets derecognized due to transfer
Items
Methods of transferring
Amount ofderecognition
Gains or losses related
to derecognitionAccountsreceivable
| financial assets | |
| financing |
Bill endorsement/billdiscounting
3,181,702,865.55 10,279,144.39
| Total | 3,181,702,865.55 | 10,279,144.39 |
12. Disclosure of fair value
The input value used in fair value measurement is divided into three levels:
The input value of the first level is the unadjusted quotation of the same asset or liability that can beobtained on the measurement date in an active market.The input value of the second level is the input value of the related assets or liabilities that is directlyor indirectly observable except the input value of the first level.The third level of input value is the unobservable input value of related assets or liabilities.The level to which the fair value measurement result belongs is determined by the lowest level towhich the input value that is important to the fair value measurement as a whole belongs.
(1) Fair value of assets and liabilities measured at fair value at the end of the period
Items
| Fair value at the end of the period | |
| First level | |
fair value
| measurement | Second level |
fair value
| measurement | Third level fair |
value
Total
1. Continuous fair value
| measurement | ||
| measurement |
| Accounts receivable financing | 64,399,942.70 | 64,399,942.70 |
Other equity instrument
933,426,254.63 933,426,254.63
13. Related parties and related transactions
(1) Details of parent company
Name of parentcompany
Place ofRegistry
Business
nature
Registered
capital
investments
Share
proportion
| (%) |
Votingrights (%)
Benxi,
| Benxi Steel & Iron (Group) Co., Ltd. | Liaoning |
Manufacturing
RMB 8
58.65 58.65
The ultimate controlling party of the Company: Ansteel Group Co., Ltd.
(2) Details of the Company’s subsidiaries
For details of the Company’s subsidiaries, please refer to Note 7 “Equity in OtherEntities”.
(3) The company's joint ventures and associates
For details of the Company's important joint ventures or associates, please refer to Note 7“Equity in Other Entities”.Other joint ventures or associates that had related-party transactions with the Companyduring the current period, or had balances resulting from related-party transactions withthe Company in prior periods, are described below:
billionName of joint venture or associated enterprise
| Name of joint venture or associated enterprise | Relationship |
| Shenyang Xiangyu New Materials Technology Co., Ltd. | Associate |
(4) Other related parties
Name of other related parties
Relationship between other related
Bengang Group Co., Ltd.
Parent company's controlling
| parties and the Company | |
| shareholder | |
| Bengang Stainless Steel Cold Rolling Dandong Co., Ltd. | Same parent company |
Benxi Iron and Steel (Group) Real Estate Development
Same parent companyBenxi Iron and Steel (Group) Engineering Construction
| Co., Ltd. |
| Supervision Co., Ltd. |
Same parent companyBenxi Iron and Steel (Group) Machinery Manufacturing
Same parent company
| Co., Ltd. | |
| 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
Same parent companyBenxi Steel & Iron (Group) Steel & Iron Process and
| Co., Ltd. |
| Logistics Co., Ltd. |
Same parent companyBenxi Iron and Steel (Group) Industrial Development Co.,
Same parent companyBenxi Iron and Steel (Group) Information Automation Co.,
| Ltd. |
| Ltd. |
Same parent company
| Benxi Iron & Steel (Group) Metallurgical Slag Co., Ltd. | Same parent company |
Benxi Iron and Steel (Group) Mining Yanjia Valley
Same parent companyBenxi Iron and Steel (Group) Mining Liaoyang Ma'erling
| Limestone Mine Co., Ltd. |
| Pellet Co., Ltd. |
Same parent companyBenxi Iron and Steel (Group) Mining Liaoyang Jiajiaobao
Same parent companyBenxi Iron and Steel (Group) Mining Mineral Resources
| Iron Mine Co., Ltd. |
| Development Co., Ltd. |
Same parent companyBenxi Iron and Steel (Group) Mining Construction
Same parent company
| Engineering Co., Ltd. | |
| Benxi New Industrial Development Co., Ltd. | Same parent company |
| Dalian Brollo Steel Pipe Co., Ltd. | Same parent company |
Name of other related parties
Relationship between other related
| parties and the Company | |
| Liaoning Hengtai Heavy Machinery Co., Ltd. | Same parent company |
| Liaoning Metallurgical Technician College | Same parent company |
| Liaoning Metallurgical Vocational Technical College | Same parent company |
Bengang Electrical Co., Ltd.
Associated enterprises of the parent
Bengang Group International Economic and Trade Co.,
| company | |
| Ltd. |
Belongs to Bengang Group Co., Ltd.
| Benxi Beiying Iron and Steel (Group) Co., Ltd. | Belongs to Bengang Group Co., Ltd. |
| Liaoning Hengyi Steel Trade Co., Ltd. | Belongs to Bengang Group Co., Ltd. |
| Angang Electrical Co., Ltd. | Belongs to Angang Group Co., Ltd. |
| Angang Scrap Resources (Anshan) Co., Ltd. | Belongs to Angang Group Co., Ltd. |
| Angang Steel Processing & Distribution (Dalian) Co., Ltd. | Belongs to Angang Group Co., Ltd. |
Angang Steel Processing & Distribution (Changchun) Co.,
Belongs to Angang Group Co., Ltd.
| Ltd. | |
| Angang Steel Distribution (Hefei) Co., Ltd. | Belongs to Angang Group Co., Ltd. |
| Angang Steel Distribution (Wuhan) Co., Ltd. | Belongs to Angang Group Co., Ltd. |
| Angang Steel Rope Co., Ltd. | Belongs to Angang Group Co., Ltd. |
| Angang Steel Company Limited | Belongs to Angang Group Co., Ltd. |
| Angang Chemical Technology Co., Ltd. | Belongs to Angang Group Co., Ltd. |
| Angang Group International Economic & Trade Co., Ltd. | Belongs to Angang Group Co., Ltd. |
| Angang Group Mining Gongchangling Co., Ltd. | Belongs to Angang Group Co., Ltd. |
| Angang Group Automation Co., Ltd. | Belongs to Angang Group Co., Ltd. |
| Angang Construction Group Co., Ltd. | Belongs to Angang Group Co., Ltd. |
| Angang Metal Structure Co., Ltd. | Belongs to Angang Group Co., Ltd. |
| Angang Mining Machinery Manufacturing Co., Ltd. | Belongs to Angang Group Co., Ltd. |
| Angang Green Resources Technology Co., Ltd. | Belongs to Angang Group Co., Ltd. |
| Angang Energy Technology Co., Ltd. | Belongs to Angang Group Co., Ltd. |
Angang Industrial Group (Anshan) Equipment Operation &
Belongs to Angang Group Co., Ltd.Angang Industrial Group Metallurgical Machinery Co.,
| Maintenance Co., Ltd. |
| Ltd. |
Belongs to Angang Group Co., Ltd.
Name of other related parties
Relationship between other related
Angang Heavy Machinery Design & Research Institute
| parties and the Company | |
| Co., Ltd. |
Belongs to Angang Group Co., Ltd.
| Angang Heavy Machinery Co., Ltd. | Belongs to Angang Group Co., Ltd. |
| DeLin Industrial Products Co., Ltd. | Belongs to Angang Group Co., Ltd. |
| DeLin Land Port Supply Chain Services Co., Ltd. | Belongs to Angang Group Co., Ltd. |
| Guangzhou Angang Steel Processing Co., Ltd. | Belongs to Angang Group Co., Ltd. |
| Tianjin Angang Steel Processing & Distribution Co., Ltd. | Belongs to Angang Group Co., Ltd. |
Changchun FAW Angang Steel Processing & Distribution
Belongs to Angang Group Co., Ltd.
| Co., Ltd. | |
| Angang Group Engineering Technology Co., Ltd. | Associate of Angang Group |
(5) Related-party transactions
1. Related party transactions of purchasing and selling goods and services
Purchasing goods and services
Related parties
Content of
related
Current period Previous period
| transactions | |||
| Angang Electrical Co., Ltd. | Repair costs | 1,088,249.99 | 988,649.97 |
Angang Scrap Resources (Anshan)Co., Ltd.
Raw materialsand auxiliary
1,124,802,017.73 655,692,228.69Angang Steel Processing &
| materials | |
| Distribution (Changchun) Co., Ltd. |
Storage costs2,485.80 37,433.12Angang Steel Processing &
Processing
| Distribution (Changchun) Co., Ltd. | costs |
1,041,620.63 1,430,380.27Angang Steel Processing &
Processing fee131,942.35Ansteel Engineering TechnologyResearch & Design Institute (Anshan)
| Distribution (Zhengzhou) Co., Ltd. |
| Co., Ltd. |
Engineering fee53,000.00
Related parties
Content ofrelated
Current period Previous period
Angang Steel Company Limited
Auxiliary
| transactions |
| materials |
3,161,789.58 937,641.12
| Angang Steel Company Limited | Steel | 1,526,698.42 |
Angang Group Beijing Research
Technical
| Institute Co., Ltd. | service fee |
820,000.00Angang Group Engineering
Engineering fee135,490,139.57 495,812,040.18Angang Group Engineering
| Technology Co., Ltd. |
| Technology Co., Ltd. |
Repair fee440,000.00 663,800.00Angang Group International
Spare parts350,000.00Angang Group International
| Economic & Trade Co., Ltd. |
| Economic & Trade Co., Ltd. |
raw fuel185,893,033.73 369,490,000.25Angang Group Mining
raw material308,667,259.88 375,015,701.56
| Gongchangling Co., Ltd. | |||
| Angang Group Co., Ltd. | service charge | 6,028.30 |
Anshan Iron & Steel Group Finance
financial
| Company Limited | services |
843,849.85Ansteel Group Co., Ltd. Daily News
Newspaper and
| Agency | magazine fees |
202,442.20Angang Group Automation Co., Ltd.
Engineering
51,010,000.00 108,215,000.00Angang Mining Automotive
| costs | |
| Transportation Co., Ltd. |
shipping fee297,872.02Angang Industrial Group (Anshan)Equipment Operation & Maintenance
Labor fee 9,339,387.20Angang Industrial Group
| Co., Ltd. |
| Metallurgical Machinery Co., Ltd. |
Spare parts9,439,932.17 9,254,415.92Angang Industrial Group
Repair costs1,005,720.00 1,093,480.00
Related parties
Content ofrelated
Current period Previous period
| transactions | |||
| Angang Industrial Group Co., Ltd. | Service fees | 131,145.12 |
Angang Heavy Machinery Design &
Project costs15,865,600.00 1,478,000.00
| Research Institute Co., Ltd. | |||
| Angang Heavy Machinery Co., Ltd. | Spare parts | 5,579,332.42 | 4,130,873.60 |
Angang Heavy Machinery Co., Ltd.
Project
1,725,616.00 3,627,700.00Anshan Angang International TravelAgency Co., Ltd.
Conference andbusiness travel
| materials |
| service fees |
3,312,463.08 3,771,073.93Anshan Iron & Steel Labor Research
Safety
| Institute Technology Co., Ltd. | production fees |
15,622.64Anshan Iron & Steel MetallurgicalFurnace Material Technology Co.,
Auxiliarymaterials
26,520,619.29 20,592,124.94Anshan Jianbo Engineering Testing
| Ltd. |
| Co., Ltd. |
Engineering
238,000.00
Angang Steel Rope Co., Ltd.
Raw andauxiliary
| costs |
| materials |
402,320.80Angang Construction Group Co., Ltd.
Engineering
101,060,733.94
Angang Energy Technology Co., Ltd.
Raw andauxiliary
| costs |
| materials |
116,947.24
Beijing Tianhongshan Hotel Co., Ltd.
Businessentertainment
2,064.00
| expenses | |||
| Bengang Electrical Co., Ltd. | Spare parts | 238,000.00 | 181,875.00 |
Bengang Electrical Co., Ltd.
Auxiliary
182,031,804.01 134,365,349.92
| materials | |||
| Bengang Electrical Co., Ltd. | Repair costs | 14,005,845.47 | 10,918,383.89 |
Related parties
Content of
related
Current period Previous period
Bengang Electrical Co., Ltd.
Engineering
| transactions |
| costs |
4,899,146.41Bengang Gaoyuan Industrial
Auxiliary
| Development Co., Ltd. | materials |
1,099,758.00 929,311.04Bengang Gaoyuan Industrial
Engineering
| Development Co., Ltd. | costs |
7,775,792.86 4,631,760.00Bengang Gaoyuan Industrial
Software186,509.43Bengang Gaoyuan Industrial
| Development Co., Ltd. |
| Development Co., Ltd. |
Repair costs5,034,146.00 2,328,495.00Benxi Steel Group Dalian Refractories
Packaging281,412.93Benxi Steel Group Dalian Refractories
| Co., Ltd. |
| Co., Ltd. |
Auxiliary
143,103.40Bengang Group International
| materials | |
| Economic and Trade Co., Ltd. |
Agency service
78,435,468.93 61,290,890.44
| fees | |||
| Bengang Group Co., Ltd. | Service fees | 1,683,819.02 |
Benxi Aiko Hydraulic Sealing Co.,
Spare parts7,083,761.45 6,297,816.12Benxi Aiko Hydraulic Sealing Co.,
| Ltd. |
| Ltd. |
Engineering
43,000.00 117,514.00Benxi Northern Iron Industry Co., Ltd.
Raw materials
| costs |
| and fuel |
201,837,093.10 303,625,003.05Benxi Beiying Iron and Steel (Group)
Labor costs73,598,631.48 73,782,240.24Benxi Beiying Iron and Steel (Group)
| Co., Ltd. |
| Co., Ltd. |
Heating costs11,363,267.27 13,310,207.04Benxi Beiying Iron and Steel (Group)
Repair costs14,147,260.22 8,807,530.29Benxi Beiying Iron and Steel (Group)
| Co., Ltd. |
| Co., Ltd. |
Transportation
38,944,033.48 8,032,969.35
Related parties
Content ofrelated
Current period Previous period
Benxi Beiying Iron and Steel (Group)Co., Ltd.
Raw materials,auxiliarymaterials and
| transactions |
| fuel |
11,249,866,993.13 10,862,670,931.26Benxi Beiying Iron and Steel (Group)
Energy and
| Co., Ltd. | power |
646,206,682.53 619,907,820.37Benxi Beiying Iron and Steel (Group)
Storage costs9,016.26Benxi Iron and Steel (Group)Electromechanical Installation
| Co., Ltd. |
| Engineering Co., Ltd. |
Constructioncosts
43,034,800.02Benxi Iron and Steel (Group)Electromechanical Installation
Raw materialsand spare parts
1,153,388.60
Benxi Dongfeng Lake Steel ResourceUtilization Co., Ltd.
Raw materials,auxiliarymaterials and
| Engineering Co., Ltd. | |
| fuel |
30,237,287.95 44,370,758.10Benxi Iron and Steel (Group) Real
Scrap steel318,201.40Benxi Iron and Steel (Group)Engineering Construction Supervision
| Estate Development Co., Ltd. |
| Co., Ltd. |
Engineeringcosts
1,973,663.48 2,893,311.49Benxi Iron and Steel (Group)
Logistics and
| International Trade Tengda Co., Ltd. | port fees |
628,386,401.75 636,896,070.98Bengang Stainless Steel Cold RollingDandong Co., Ltd.
Raw materialsand auxiliary
348,937.34Benxi Iron and Steel (Group)
| materials | |
| Machinery Manufacturing Co., Ltd. |
Raw materials,
181,132,648.35 73,747,200.55
Related parties
Content of
related
Current period Previous periodmaterials and
transactionsspare parts
Benxi Iron and Steel (Group)
| spare parts | |
| Machinery Manufacturing Co., Ltd. |
Construction
16,210,213.36 48,057,147.53Benxi Iron and Steel (Group)
| costs | |
| Machinery Manufacturing Co., Ltd. |
Labor costs36,841,060.54 11,036,444.38Benxi Iron and Steel (Group)
Repair costs32,903,771.81 9,039,082.00Benxi Iron and Steel (Group)
| Machinery Manufacturing Co., Ltd. |
| Machinery Manufacturing Co., Ltd. |
Leasing costs299,057.14 717,737.14Benxi Iron and Steel (Group)
Construction
| Inspection and Testing Co., Ltd. | costs |
114,000.00Benxi Iron and Steel (Group)Construction Advanced Decoration
Engineeringcosts
554,873.39Benxi Iron and Steel (Group)Construction Co., Ltd.
Safetyproduction
| Co., Ltd. | |
| costs |
7,021,845.00Benxi Iron and Steel (Group)
Raw materials
| Construction Co., Ltd. | and spare parts |
2,823,320.95 4,049,388.78Benxi Iron and Steel (Group)
Engineering
| Construction Co., Ltd. | costs |
227,018,510.96 364,430,836.36Benxi Iron and Steel (Group)
Labor costs37,928,559.17 11,255,747.63Benxi Iron and Steel (Group)
| Construction Co., Ltd. |
| Construction Co., Ltd. |
Repair costs56,847,478.43 34,709,635.27Benxi Iron and Steel (Group)
Freight88,934.45Benxi Iron and Steel (Group) Mining
| Construction Co., Ltd. |
| Construction Engineering Co., Ltd. |
Safety
958,300.00
Related parties
Content of
related
Current period Previous period
Benxi Iron and Steel (Group) MiningConstruction Engineering Co., Ltd.
Raw andauxiliary
| transactions |
| materials |
259,707.76 140,320.00Benxi Iron and Steel (Group) Mining
Engineering
| Construction Engineering Co., Ltd. | cost |
15,527,451.16 43,916,148.59Benxi Iron and Steel (Group) Mining
Landscaping
| Construction Engineering Co., Ltd. | fee |
330,023.10Benxi Iron and Steel (Group) Mining
Repair fee16,370,420.00 12,066,104.00Benxi Iron and Steel (Group) Mining
| Construction Engineering Co., Ltd. |
| Liaoyang Ma'erling Pellet Co., Ltd. |
Raw materials2,504,269,802.79 2,234,070,710.11Benxi Iron and Steel (Group) MiningCo., Ltd.
Raw materialsand auxiliary
4,591,090,218.87 3,853,939,286.46Benxi Iron and Steel (Group) Mining
| materials | |
| Co., Ltd. |
Spare parts2,248,751.72Benxi Iron and Steel (Group) Mining
Labor costs150,042.14Benxi Iron and Steel (Group) Mining
| Co., Ltd. |
| Co., Ltd. |
Energy and
7,476,859.63Benxi Iron and Steel (Group) Thermal
| power | |
| Power Development Co., Ltd. |
Office expenses742,575.27Benxi Iron and Steel (Group) Thermal
Scrap steel104,836.20 373,267.40Benxi Iron and Steel (Group) Thermal
| Power Development Co., Ltd. |
| Power Development Co., Ltd. |
Heating costs88,239.27 797,049.85Benxi Steel & Iron (Group) Steel &
Engineering
| Iron Process and Logistics Co., Ltd. | costs |
656,078,499.29 449,295,500.86Benxi Steel & Iron (Group) Steel &
Labor costs4,034,598.16
Related parties
Content of
related
Current period Previous periodBenxi Steel & Iron (Group) Steel &
| transactions | |
| Iron Process and Logistics Co., Ltd. |
Repair costs458,468,973.46 142,853,909.52Benxi Steel & Iron (Group) Steel &
Transportation
| Iron Process and Logistics Co., Ltd. | costs |
57,065.00 2,174,824.48Benxi Steel & Iron (Group) Steel &
Raw materials
| Iron Process and Logistics Co., Ltd. | and spare parts |
18,163,158.05 12,860,462.92Benxi Iron and Steel (Group)
Processing
| Industrial Development Co., Ltd. | costs |
18,871,781.53Benxi Iron and Steel (Group)
Labor costs5,016,377.00 362,000.00Benxi Iron and Steel (Group)
| Industrial Development Co., Ltd. |
| Industrial Development Co., Ltd. |
Repair costs5,402,831.00 1,155,049.00Benxi Iron and Steel (Group)
Transportation
| Industrial Development Co., Ltd. | costs |
5,580,324.46 5,862,435.57Benxi Iron and Steel (Group)Industrial Development Co., Ltd.
Raw materialsand auxiliary
281,948,794.02 37,503,759.27Benxi Iron and Steel (Group)
| materials | |
| Industrial Development Co., Ltd. |
Engineering
316,333.57Benxi Iron and Steel (Group)
| costs | |
| Information Automation Co., Ltd. |
Spare parts7,016,883.54 3,068,409.30Benxi Iron and Steel (Group)
Engineering
| Information Automation Co., Ltd. | costs |
164,712,992.61
Benxi Iron and Steel (Group)Information Automation Co., Ltd.
Informationsystemoperation andmaintenance
32,650,000.00
Benxi Iron and Steel (Group)
| costs | |
| Information Automation Co., Ltd. |
Repair costs4,391,141.90
Related parties
Content of
related
Current period Previous periodBenxi Iron and Steel (Group)
| transactions | |
| Information Automation Co., Ltd. |
Transportation
14,500,000.00Benxi Iron & Steel (Group)Metallurgical Slag Co., Ltd.
Raw materialsand auxiliary
| costs |
| materials |
239,884,805.78Benxi Iron and Steel (Group) Roadand Bridge Construction Engineering
Constructioncosts
1,596,283.35Benxi Iron and Steel (Group) Roadand Bridge Construction Engineering
| Co., Ltd. |
| Co., Ltd. |
Raw materials790,211.60
Benxi Steel (Group)
Construction
1,454,256.13 46,971.56Benxi Steel (Group)
Security andfire fighting
| costs |
| costs |
35,406,267.46
| Benxi Steel (Group) | Labor costs | 11,495,717.31 | |
| Benxi Steel (Group) | Repair costs | 3,005,000.00 | 320,657,100.00 |
Benxi Steel (Group)
Transportation
216,297.35 278,654.36Benxi Steel (Group)
Energy and
| costs |
| power |
283,478.17 73,134.75Benxi Steel (Group)
Raw materialsand auxiliary
422,431.09 181,824.33Benxi Steel (Group)
Equipment
| materials |
| verification |
9,377,880.96 3,321,904.00Benxi Steel (Group)
Financial
1,397,473.55
| services | |||
| Benxi Steel (Group) | Heating costs | 328,521.69 |
Related parties
Content of
related
Current period Previous period
Benxi Xihu Metallurgical FurnaceMaterial Co., Ltd.
Raw andauxiliary
| transactions |
| materials |
192,903,880.17 207,529,292.47Benxi New Industrial Development
Service fee1,929,906.33 574,417.10Benxi New Industrial Development
| Co., Ltd. |
| Co., Ltd. |
Construction
181,766.74 24,369.91Benxi New Industrial DevelopmentCo., Ltd.
Businessentertainment
| fee |
| fee |
610,742.00Benxi New Industrial Development
Welfare fee1,393,665.39Benxi New Industrial Development
| Co., Ltd. |
| Co., Ltd. |
Rent fee2,920,353.98Chengdu Pangang Rongcheng
Conference fee949,039.62Dalian Brollo Steel Pipe Co., Ltd.
Auxiliary
| Mansion Co., Ltd. | |
| materials |
2,043,620.46
| DeLin Industrial Products Co., Ltd. | Office expenses | 26,228.80 |
DeLin Industrial Products Co., Ltd.
Auxiliarymaterials and
31,621,116.30 74,741,575.57
| spare parts | |||
| DeLin Industrial Products Co., Ltd. | Project costs | 834,704.34 |
DeLin Land Port Supply Chain
Warehousing
| Services Co., Ltd. | costs |
732,650.90 246,824.45DeLin Land Port Supply Chain
Logistics costs728,272.47DeLin Land Port Supply Chain
| Services Co., Ltd. |
| Services Co., Ltd. |
Sales service
3,103,633.08DeLin Land Port Supply Chain
| fees | |
| Services Co., Ltd. |
Transportation
4,636,643.71 568,487.64
Related parties
Content of
related
Current period Previous periodLiaoning Hengtai Heavy Machinery
| transactions | |
| Co., Ltd. |
Project costs3,856,300.00 37,188,300.00Liaoning Hengtai Heavy Machinery
Labor costs530,585.00 350,800.00Liaoning Hengtai Heavy Machinery
| Co., Ltd. |
| Co., Ltd. |
Repair costs24,024,198.00 18,645,700.00Liaoning Hengtai Heavy Machinery
Transportation
| Co., Ltd. | costs |
191,560.00 78,037.61Liaoning Hengtai Heavy Machinery
Raw materials
| Co., Ltd. | and spare parts |
10,051,560.76 10,665,788.41Liaoning Hengtong Metallurgical
Raw materials
| Equipment Manufacturing Co., Ltd. | and spare parts |
152,452,904.58 133,050,407.42Liaoning Hengtong Metallurgical
Repair costs10,198,700.00 4,914,275.00Liaoning Lide Internet of Things Co.,
| Equipment Manufacturing Co., Ltd. |
| Ltd. |
Labor costs192,707,239.82 35,512,505.43Liaoning Lide Internet of Things Co.,
Transportation
| Ltd. | costs |
24,602,117.69Liaoning Metallurgical VocationalTechnical College
Safetyproduction
566,077.66Liaoning Yitong Machinery
| costs | |
| Manufacturing Co., Ltd. |
Raw materials
12,956,330.57 8,183,307.29Liaoning Yitong Machinery
| and spare parts | |
| Manufacturing Co., Ltd. |
Repair costs24,364.61 15,272.60Liaoning Yitong Machinery
Engineering
| Manufacturing Co., Ltd. | costs |
21,840.00 18,050.00Pangang Group Chengdu Vanadium &Titanium Resources Development Co.,
Auxiliarymaterials
2,361,588.46 3,573,383.68
Related parties
Content of
related
Current period Previous periodPangang Group Engineering
| transactions | |
| Technology Consulting Co., Ltd. |
Engineering
736,600.00 3,535,680.02Shanxi Materials International Energy
| costs | |
| Co., Ltd. |
Fuel21,171,289.92 43,561,493.05Tianjin Bengang Sheet Metal
Storage fees3,549.41Tianjin Bengang Sheet Metal
| Processing & Distribution Co., Ltd. |
| Processing & Distribution Co., Ltd. |
Processing fees1,300,732.50Angang (Liaoning) Materials
Technical
| Technology Co., Ltd. | service fees |
907,452.84
Selling goods and services
Related parties Content of related transactions Current period
| Previous period | ||
| Angang (Hangzhou) Automotive Materials Technology Co., Ltd. |
Steel and steel products 2,467,535.99 2,034,371.33
Distribution (Dalian) Co., Ltd.
| Angang Steel Processing & | Steel and steel products, |
warehousing income, processing
48,381,404.67 72,575,160.26
| income | |
| Angang Steel Processing & Distribution (Changchun) Co., Ltd. |
Steel and steel products 3,171,633.00 24,513,902.53
Steel and steel products 10,469,864.30
| Angang Steel Processing & Distribution (Zhengzhou) Co., Ltd. |
| Angang Steel Distribution (Hefei) Co., Ltd. |
Steel and steel products 9,172,909.61
Steel and steel products 1,058,038.90 55,103,512.47
| Angang Steel Distribution (Wuhan) Co., Ltd. | |||
| Angang Steel Company Limited | Steel and steel products | 923,408.47 | 1,317,394.48 |
| Ansteel Guangzhou Automobile Steel Co., Ltd. |
Steel and steel products 371,488.99
Steel and steel products 255,050,438.20 156,801,931.63
| Angang Chemical Technology Co., Ltd. |
| Angang Group Engineering Technology Co., Ltd. |
Chemicals and by-products 47,707.68 39,419.63
Energy and power 228,316,260.00Angang Group Co., Ltd.
| Angang Group International Economic & Trade Co., Ltd. | |
| Steel and steel products, |
chemicals and by-products, energy
1,613.64
| and power | |||
| Angang Group Mining Co., Ltd. | Energy and power | 6,415.09 | |
| Angang Construction Group Co., Ltd. |
Energy and power 197,984.99
Steel and steel products 30,239,734.42
Energy and power 4,853.78
| Angang Heavy Machinery Design & Research Institute Co., Ltd. |
| Angang Green Resources Technology Co., Ltd. |
Raw and auxiliary materials 42,248,746.78 133,922,761.19
Chemicals and by-products 25,955,120.37 23,183,781.78
| Angang Energy Technology Co., Ltd. | |
| Angang Group Energy-Saving Technology Services Co., Ltd. | Energy and power, testing and inspection |
10,778,642.31
Steel and steel products,
processing income
474,927.84
| Ansteel Shenyang Steel Processing & Distribution Co., Ltd. | |||
| Bengang Electrical Co., Ltd. | Energy and power | 107.35 | 621,817.77 |
| Benxi Steel Group Dalian Refractories Co., Ltd. |
Steel and steel products 5,729,788.15Bengang Group Co., Ltd.
2,823,645.00 208,112.60
| Spare parts, engineering materials, energy and power | |
| Benxi Northern Iron Industry Co., Ltd. | Scrap steel, raw and auxiliary materials, raw materials |
84,620,440.80 192,687,665.61Benxi Northern Rolling Co., Ltd.
1,305,509.83
| Raw materials and auxiliary materials | |
| Benxi Beiying Iron and Steel (Group) Co., Ltd. |
Spare parts 272,771,274.28 282,002,512.53
| Benxi Dongfeng Lake Steel Resource Utilization Co., Ltd. | Energy and power, raw materials and auxiliary materials |
13,323,767.03 27,512,145.34
Energy and power 23,160.82 74,559.84
| Benxi Iron and Steel (Group) Real Estate Development Co., Ltd. |
| Benxi Iron and Steel (Group) Engineering Construction Supervision Co., Ltd. |
Energy and power 1,909.73 2,245.04
Ltd.
| Benxi Iron and Steel (Group) Machinery Manufacturing Co., | Scrap steel, steel and steel |
products, chemicals and by-products, processing income,
18,758,862.27 12,911,322.91
| energy and power | |
| Benxi Iron and Steel (Group) Construction Co., Ltd. |
Energy and power 2,009,079.40 4,299,873.92
Mining Construction Engineering
| Co., Ltd. |
Steel and steel products, energy
and power
272,478.72 595,139.57
Mining Liaoyang Jiajiaobao Iron
| Mine Co., Ltd. |
Energy and power 26,844.93 55,244,352.50
Mining Liaoyang Ma'erling Pellet
| Co., Ltd. |
Energy and power, fuel 57,220,544.58 83,205,175.45
| Benxi Iron and Steel (Group) Mining Co., Ltd. | Storage income, steel and steel products |
7,358,539.02 559,201,878.94
Thermal Power Development Co.,
| Ltd. |
Chemicals and by-products,energy and power, fuel
46,021,096.45 66,722,210.85
& Iron Process and Logistics Co.,
| Ltd. |
Storage income, steel and steel
products, energy and power
15,603,447.07 10,477,308.55
Industrial Development Co., Ltd.
| Benxi Iron and Steel (Group) | Energy and power, testing and |
inspection, raw materials and
132,580,926.30 11,699,668.02
| spare parts | |
| Benxi Iron and Steel (Group) Information Automation Co., Ltd. |
Energy and power 488,917.53 943,413.65
Energy and power 272,525.36
| Benxi Iron and Steel (Group) Electromechanical Installation Engineering Co., Ltd. |
| Benxi Iron and Steel (Group) Construction Advanced Decoration Co., Ltd. |
Energy and power 527.01Benxi Steel (Group)
11,159,087.54 6,966,540.85
Mining Yanjia Valley Limestone
| Mine Co., Ltd. |
Energy and power, testing and
inspection
2,052,313.28
Testing and inspection 4,695.28
| Benxi Iron and Steel (Group) Road and Bridge Construction Engineering Co., Ltd. |
| Benxi Iron & Steel (Group) |
Metallurgical Slag Co., Ltd.
and spare parts, raw materials and
| spare parts |
94,191,190.98
| Bengang Gaoyuan Industrial Development Co., Ltd. | Energy and power, testing and inspection |
11,039.01
Energy and power 236,195.71 51,845.77
| Benxi Xihu Metallurgical Furnace Material Co., Ltd. |
| Benxi Weir Surfacing Manufacturing Co., Ltd. |
Energy and power 50,861.74 39,029.56
Energy and power 224,031.67 51,788.65
| Benxi New Industrial Development Co., Ltd. | |||
| Dalian Brollo Steel Pipe Co., Ltd. | Steel and steel products | 10,870,375.21 | 16,114,335.27 |
| DeLin Land Port Supply Chain Services Co., Ltd. | Warehousing income, steel and steel products |
3,147,395,031.01 816,321,523.81
Steel and steel products 15,100,206.27 12,510,453.69
| Guangzhou Angang Steel Processing Co., Ltd. |
| Liaoning Hengtong Metallurgical Equipment Manufacturing Co., Ltd. |
Scrap steel, waste materials, raw
materials
29,992,686.48 174,388,966.12
Steel and steel products 18,133,959.69 14,852,323.92
| Pangang Group Jiangyou Great Wall Special Steel Co., Ltd. | |
| Tianjin Angang Steel Processing & Distribution Co., Ltd. | Warehousing income, steel and steel products |
37,200,677.54 1,415,942.58
Steel and steel products 4,693,047.99
| Changchun Ansteel Jiefang Steel Processing & Distribution Co., Ltd. |
| China Ordnance Industry Materials Group Co., Ltd. |
Steel and steel products 139,809.64
| Liaoning Hengtai Heavy Machinery Co., Ltd. | Energy and power, testing and inspection |
12,194.90
Testing and inspection 12,120.75
| Liaoning Slag Micropowder Co., Ltd. | |
| Liaoning Yitong Machinery Manufacturing Co., Ltd. | Energy and power, testing and inspection |
9,874.53
Steel and steel products 249,512,844.48
| Tianjin Angang International Northern Trade Co., Ltd. |
| Yantai Ansteel International Trade Co., Ltd. |
Steel and steel products 509,560.40
Steel and steel products 1,969,914.22
2. Lease information of related parties
Company as lessor：
Lessee
Type of leasing
assets
Lease income ofcurrent period
Changchun FAW Angang SteelProcessing & Distribution Co.,Ltd.Lease income
of previous
| period |
Benxi Steel & Iron (Group) Steel & IronProcess and Logistics Co., Ltd.
Factory buildingsand ancillary
108,980.00 217,960.00
Lessee
Type of leasingassets
Lease income ofcurrent period
of previous
| period |
Benxi Steel (Group) MachineryManufacturing Co., Ltd.
Factory buildingsand ancillary
670,802.00 -Bengang Group International Economicand Trade Co., Ltd.
Factory buildingsand ancillary
| equipment |
| equipment |
1,957,007.77 -
Company as the lessee：
Lessor Name
Leased AssetType
| Current period | Previous period amount | |
| Rental | ||
costs for
short-termleases
andleases of
low-valueassets
withsimplifie
d
Variableleasepaymentsnot included
in themeasurement of leaseliabilities
Rent paid
Interestexpenseon leaseliabilities
Increasein right-
of-useassets
| treatment | Rental |
costs forshort-termleases
andleases of
low-valueassets
withsimplifie
d
Variableleasepayments
notincluded
in themeasurem
ent of
leaseliabilities
Rent paid
Interestexpense onlease liabilities
Increasein right-
of-useassets
Benxi Steel& Iron(Group) Steel& IronProcess andLogistics Co.,
| treatment | ||
| Ltd. |
Land use right7,669,068.17square meterLand use right42,920.00square meter
55,277,54
4.12
37,677,81
9.06
55,277,544.12 39,000,108.00
Benxi Steel& Iron
2300 Hotrolling product
16,098,16
1.04
6,968,900.
16,098,161.05 7,740,688.68
Lessor Name
Leased Asset
Type
| Current period | Previous period amount | |
| Rental | ||
costs for
short-termleasesandleases oflow-valueassetswithsimplifie
d
Variableleasepaymentsnot includedin themeasurement of leaseliabilities
Rent paid
Interestexpenseon leaseliabilities
Increasein right-of-useassets
| treatment | Rental |
costs forshort-termleasesandleases oflow-valueassetswithsimplifie
d
Variableleasepayments
notincluded
in themeasurem
ent of
leaseliabilities
Rent paid
Interestexpense onlease liabilities
Increasein right-
of-useassets
& IronProcess andLogistics Co.,
treatmentLtd.
line, relatedreal estate
BenxiBeiying Steel& Iron(Group) Co.,
| Ltd. |
| Ltd. |
1780 Hotrolling productline, relatedreal estate
14,351,63
7.72
5,367,055.
14,351,637.72 5,961,443.40
BengangGroup Co.,
Land use right728,282.30
| Ltd. | square meter |
9,945,423.
1,757,731.
9,945,423.12 2,449,918.80
Lessor Name
Leased AssetType
| Current period | Previous period amount | |
| Rental | ||
costs for
short-termleasesandleases of
low-valueassetswithsimplified
Variableleasepaymentsnot includedin themeasurement of leaseliabilities
Rent paid
Interestexpenseon leaseliabilities
Increasein right-of-useassets
| treatment | Rental |
costs forshort-termleases
andleases of
low-valueassets
withsimplifie
d
Variableleasepayments
notincluded
in themeasurem
ent of
leaseliabilities
Rent paid
Interestexpense onlease liabilities
Increasein right-
of-useassets
AngangGroupEnergy-SavingTechnologyServices Co.,
| treatment | ||
| Ltd. |
machinery andequipment
7,418,960.
6,474,538.
255,128,
489.65
3. Remuneration of key management personnel
Units: in 10 thousand
| Items | Current period | Previous period |
Remuneration of key management
402.56 427.09
(6) Receivables and payables of the related parties
1. Receivables of the company
Items Name
personnel2024/12/31
| 2024/12/31 | 2023/12/31 |
Gross carrying
Provision for
| amount | bad debts |
Gross carrying
Provision for
| amount | bad debts |
Accountsreceivable
Angang SteelProcessing &Distribution(Dalian) Co.,
17,280,685.82 172,806.86 27,279,295.84 272,792.96
Accountsreceivable
Angang SteelDistribution(Wuhan) Co.,
| Ltd. |
| Ltd. |
343,341.92 3,433.42
Accountsreceivable
BengangGroupInternationalEconomic andTrade Co.,
253,981,286.94 2,539,812.87 854,482,902.28 29,419,309.19
Accountsreceivable
BenxiNorthern IronIndustry Co.,
| Ltd. |
| Ltd. |
8,268,156.18 82,681.56 52,161,339.98 539,226.50
Accounts
Benxi
| receivable | Northern |
1,475,226.11 14,752.26
Items Name
| 2024/12/31 | 2023/12/31 |
Gross carrying
Provision for
| amount | bad debts |
Gross carrying
Provision for
| amount | bad debts |
Rolling Co.,
Accountsreceivable
Benxi BeiyingIron and Steel(Group) Co.,
| Ltd. |
| Ltd. |
143,872.00 1,438.72 814,535.99
Accountsreceivable
BenxiDongfengLake SteelResourceUtilization
454,258.02 4,542.58 1,129,130.33 11,291.30
Accountsreceivable
Benxi Iron andSteel (Group)Construction
| Co., Ltd. |
| Co., Ltd. |
1,389,266.64 39,345.19 5,954,675.29 10,700.06
Accountsreceivable
Benxi Iron andSteel (Group)MiningConstructionEngineering
607,729.23 63,193.36 662,998.24 11,004.96
Accountsreceivable
Benxi Iron andSteel (Group)MiningMineralResourcesDevelopment
| Co., Ltd. |
| Co., Ltd. |
88,983.85 8,898.39 88,983.85 889.84
Accounts
Benxi Iron and
| receivable | Steel (Group) |
16,557.90 165.58 303,609.00 3,036.09
Items Name
| 2024/12/31 | 2023/12/31 |
Gross carrying
Provision for
| amount | bad debts |
Gross carrying
Provision for
| amount | bad debts |
MiningLiaoyangJiajiaobao Iron
Accountsreceivable
Benxi Iron andSteel (Group)MiningLiaoyangMa'erling
| Mine Co., Ltd. |
| Pellet Co., Ltd. |
921,521.39 67,911.03 1,602,237.39 16,022.37
Accountsreceivable
Benxi Iron andSteel (Group)Mining YanjiaValleyLimestone
13,714.00 137.14
Accountsreceivable
Benxi Iron andSteel (Group)Mining Co.,
| Mine Co., Ltd. |
| Ltd. |
2,184,958.74 21,849.59 43,742,238.95 437,422.39
Accountsreceivable
Benxi Iron andSteel (Group)ThermalPowerDevelopment
6,744,686.82 246,075.39 16,191,269.77 142,065.08
Accountsreceivable
Benxi Steel &Iron (Group)Steel & Iron
| Co., Ltd. |
| Process and |
1,903,696.41 39,634.20 11,642,752.56 256,914.89
Items Name
| 2024/12/31 | 2023/12/31 |
Gross carrying
Provision for
| amount | bad debts |
Gross carrying
Provision for
| amount | bad debts |
Logistics Co.,
Accountsreceivable
Benxi Iron andSteel (Group)IndustrialDevelopment
| Ltd. |
| Co., Ltd. |
6,964,699.57 69,647.00 20,496,130.86 2,727.99
Accounts
Benxi Steel
| receivable | (Group) |
1,700,740.58 17,007.41 19,025,699.80 681,571.55
Accountsreceivable
Benxi XihuMetallurgicalFurnaceMaterial Co.,
49,833.00 498.33 13,216.40 132.16
Accountsreceivable
Benxi WeirSurfacingManufacturing
| Ltd. |
| Co., Ltd. |
190,148.59 8,558.50 191,720.22 16,994.63
Accountsreceivable
LiaoningHengtongMetallurgicalEquipmentManufacturing
54,010.30 540.10 162,404,481.01 1,637,032.46
Accountsreceivable
Liaoning SlagMicropowder
| Co., Ltd. |
| Co., Ltd. |
12,848.00 128.48 12,848.00 128.48Accountsreceivable
Angang SteelCompany
519,491.94 5,194.92
Items Name
| 2024/12/31 | 2023/12/31 |
Gross carrying
Provision for
| amount | bad debts |
Gross carrying
Provision for
| amount | bad debts |
Accountsreceivable
Angang GroupEngineeringTechnology
23,232.88 232.33 30,509.40 305.09
Accountsreceivable
AngangConstructionGroup Co.,
| Co., Ltd. |
| Ltd. |
4,154.16 41.54
Accountsreceivable
AngangEnergyTechnology
283.53 2.84
Accountsreceivable
BengangGroup Co.,
| Co., Ltd. |
| Ltd. |
1,246.09 12.46
Accountsreceivable
Benxi Iron andSteel (Group)Real EstateDevelopment
269,832.53 244,698.20
Accountsreceivable
Benxi Iron andSteel (Group)InformationAutomation
| Co., Ltd. |
| Co., Ltd. |
561.58 5.62 14,700.00 147.00
Accountsreceivable
Benxi NewIndustrialDevelopment
49,497.48 55.28
Accounts
| Co., Ltd. | |
| receivable |
Pangang
5,864,196.39 58,641.96
Items Name
| 2024/12/31 | 2023/12/31 |
Gross carrying
Provision for
| amount | bad debts |
Gross carrying
Provision for
| amount | bad debts |
Jiangyou GreatWall Special
Otherreceivables
BengangStainless SteelCold RollingDandong Co.,
| Steel Co., Ltd. |
| Ltd. |
1,030,000.00 10,300.00
Otherreceivables
BengangGroupInternationalEconomic andTrade Co.,
6,617.52 6,617.52
Otherreceivables
Benxi Iron andSteel (Group)Construction
| Ltd. |
| Co., Ltd. |
250,679.61 250,679.61 250,679.61 250,679.61Other
Benxi Steel
| receivables | (Group) |
2,674,500.00 157,740.00 7,413,860.80 4,561,714.36
Otherreceivables
Liaoning LideInternet ofThings Co.,
1,881,016.00 18,810.16
Otherreceivables
Angang SteelCompany
| Ltd. |
| Limited |
95,781.27 50,581.83 95,781.27 46,061.89Other
Angang Group
| receivables | Co., Ltd. |
13,906.00 139.06 6,706.00 67.06Other
Anzi (Tianjin)
| receivables | Financial |
8,064,427.98 80,644.28
Items Name
| 2024/12/31 | 2023/12/31 |
Gross carrying
Provision for
| amount | bad debts |
Gross carrying
Provision for
| amount | bad debts |
Leasing Co.,
Otherreceivables
BengangGroup Co.,
| Ltd. |
| Ltd. |
7,305.59 73.06
Otherreceivables
BenxiDongfengLake SteelResourceUtilization
3,478,250.07 23,340.75
Otherreceivables
Benxi Iron andSteel (Group)MachineryManufacturing
| Co., Ltd. |
| Co., Ltd. |
1,061,981.67 106,198.17
Otherreceivables
Benxi Iron andSteel (Group)IndustrialDevelopment
431,639.87 43,163.99
Otherreceivables
Benxi NewIndustrialDevelopment
| Co., Ltd. |
| Co., Ltd. |
2,280,942.73 2,280,942.73
Otherreceivables
LiaoningHengtai HeavyMachinery
3,545,583.40 35,455.83
Prepayment
Angang Steel
| Co., Ltd. |
| Processing & |
663.59
Items Name
| 2024/12/31 | 2023/12/31 |
Gross carrying
Provision for
| amount | bad debts |
Gross carrying
Provision for
| amount | bad debts |
Distribution(Changchun)
Prepayment
Benxi BeiyingIron and Steel(Group) Co.,
| Co., Ltd. |
| Ltd. |
7,880,500.42 3,118,976.34
Prepayment
Benxi Iron andSteel (Group)MachineryManufacturing
318,579.31
Prepayment
Benxi Steel &Iron (Group)Steel & IronProcess andLogistics Co.,
| Co., Ltd. |
| Ltd. |
3,162,173.15 3,162,173.15
Prepayment
Benxi NewIndustrialDevelopment
7,196,737.50 8,122,937.94
Prepayment
Angang SteelCompany
| Co., Ltd. |
| Limited |
484,808.79 882,482.46
Prepayment
Angang GroupEngineeringTechnology
6,774,166.05
Prepayment
Angang Group
| Co., Ltd. |
| International |
0.01 0.01
Items Name
| 2024/12/31 | 2023/12/31 |
Gross carrying
Provision for
| amount | bad debts |
Gross carrying
Provision for
| amount | bad debts |
Economic &Trade Co.,
Prepayment
BengangGroupInternationalEconomic andTrade Co.,
| Ltd. |
| Ltd. |
10,176,164.50
Prepayment
Benxi BeiyingIron and SteelGroup Importand Export
1,119,904.00
Prepayment
Benxi Iron andSteel (Group)InformationAutomation
| Co., Ltd. |
| Co., Ltd. |
575,313.17 1,075,365.83
Other non-currentassets
BengangGaoyuanIndustrialDevelopment
542,400.00 542,400.00
Other non-currentassets
Benxi Iron andSteel (Group)Construction
| Co., Ltd. |
| Co., Ltd. |
19,936,615.33 22,094,076.34Other non-current
Benxi Iron andSteel (Group)
| assets | Mining |
3,102,019.08 3,155,429.08
Items Name
| 2024/12/31 | 2023/12/31 |
Gross carrying
Provision for
| amount | bad debts |
Gross carrying
Provision for
| amount | bad debts |
ConstructionEngineering
Other non-currentassets
Benxi Steel &Iron (Group)Steel & IronProcess andLogistics Co.,
| Co., Ltd. |
| Ltd. |
12,686,042.92 22,915,336.04
Other non-currentassets
Benxi Iron andSteel (Group)IndustrialDevelopment
562,392.14 833,139.38
Other non-currentassets
LiaoningHengtai HeavyMachinery
| Co., Ltd. |
| Co., Ltd. |
5,895,416.00 263,473.40Other non-current
Angang SteelCompany
| assets | Limited |
7,305.45
Other non-currentassets
Angang GroupEngineeringTechnology
1,968,632.21 14,517,451.17
Other non-currentassets
Angang HeavyMachineryDesign &ResearchInstitute Co.,
| Co., Ltd. |
| Ltd. |
3,506,580.00
Items Name
| 2024/12/31 | 2023/12/31 |
Gross carrying
Provision for
| amount | bad debts |
Gross carrying
Provision for
| amount | bad debts |
Other non-currentassets
Benxi Iron andSteel (Group)MachineryManufacturing
4,176.00
Other non-currentassets
Benxi Iron andSteel (Group)InformationAutomation
| Co., Ltd. |
| Co., Ltd. |
7,692,252.35 16,042,420.95
2. Payables of the company
| Items | Related party | 2024/12/31 | 2023/12/31 |
Contract
Angang (Hangzhou) Automotive Materials
| liabilities | Technology Co., Ltd. |
644,589.93 299,035.59Contract
Angang Steel Processing & Distribution
| liabilities | (Dalian) Co., Ltd. |
1,018.12Contract
Angang Steel Processing & Distribution
| liabilities | (Changchun) Co., Ltd. |
2,826,567.07 5,370,495.95Contract
Angang Steel Distribution (Hefei) Co., Ltd.3,099,204.80 3,050,349.68Contract
| liabilities |
| liabilities |
Angang Steel Distribution (Wuhan) Co., Ltd.731,023.72Contract
Angang Group International Economic &
| liabilities | Trade Co., Ltd. |
649,732.04Contract
Ansteel Shenyang Steel Processing &
| liabilities | Distribution Co., Ltd. |
87,869.94Contract
Benxi Steel Group Dalian Refractories Co.,
| liabilities | Ltd. |
4,203,125.16
| Items | Related party | 2024/12/31 | 2023/12/31 |
Contract
Benxi Beiying Iron and Steel (Group) Co.,
| liabilities | Ltd. |
6,329,389.09 1,718,334.16Contract
Benxi Dongfeng Lake Steel Resource
| liabilities | Utilization Co., Ltd. |
4,881,014.65 2,479,009.03Contract
Benxi Iron and Steel (Group) Machinery
| liabilities | Manufacturing Co., Ltd. |
5,552.80 177,026.55Contract
Benxi Iron and Steel (Group) Construction
| liabilities | Co., Ltd. |
39,135.82 39,135.82Contract
Benxi Iron and Steel (Group) Mining Co.,
| liabilities | Ltd. |
510,246.41 4,931,815.33Contract
Benxi Iron and Steel (Group) Thermal Power
| liabilities | Development Co., Ltd. |
8,620,006.55 4,487,918.73Contract
Benxi Iron and Steel (Group) Industrial
| liabilities | Development Co., Ltd. |
10,393,122.80 1,587,538.32Contract
Benxi Xihu Metallurgical Furnace Material
| liabilities | Co., Ltd. |
20,000.00 20,000.00Contract
Delin Land Port Supply Chain Services Co.,
| liabilities | Ltd. |
305,864,435.81 196,434,644.84Contract
Guangzhou Angang Steel Processing Co.,
| liabilities | Ltd. |
500,000.00 1,067.17Contract
Liaoning Hengtong Metallurgical Equipment
| liabilities | Manufacturing Co., Ltd. |
3,278,592.93 3,588,934.12Contract
Liaoning Metallurgical Vocational Technical
| liabilities | College |
0.01 0.01
Contract
Tianjin Angang Steel Processing &
| liabilities | Distribution Co., Ltd. |
4,824,582.32 3,064,031.23Contract
Changchun Ansteel Jiefang Steel Processing
| liabilities | & Distribution Co., Ltd. |
8,200,175.36Contract
Angang Mining Machinery Manufacturing
| liabilities | Co., Ltd. |
354,001.32Contract
Angang Steel Company Limited675,535.16 130,744.73
| Items | Related party | 2024/12/31 | 2023/12/31 |
Contract
Angang Chemical Technology Co., Ltd.10,758,548.27 6,485,543.83Contract
| liabilities |
| liabilities |
Angang Green Resources Technology Co.,
477,418.26 1,484,311.95Contract
| Ltd. | |
| liabilities |
Angang Energy Technology Co., Ltd.
0.02 283.55
Contract
Angang Heavy Machinery Design &
| liabilities | Research Institute Co., Ltd. |
23,079.79Contract
Benxi Iron & Steel (Group) Metallurgical
| liabilities | Slag Co., Ltd. |
0.02
Contract
Dalian Brollo Steel Tubes Co., Ltd.3,191,247.16 3,319,972.56Contract
| liabilities |
| liabilities |
Pangang Group Jiangyou Great Wall Special
1,779,438.17Contract
| Steel Co., Ltd. | |
| liabilities |
Changchun FAW Angang Steel Processing &
589,358.32Accounts
| Distribution Co., Ltd. | |
| payable |
Angang Mining Automotive Transportation
324,680.50Accounts
| Co., Ltd. | |
| payable |
Angang Steel Processing & Distribution
108,462.46 208,377.96Accounts
| (Changchun) Co., Ltd. | |
| payable |
Bengang Gaoyuan Industrial Development
3,969,044.08 1,125,249.71Accounts
| Co., Ltd. | |
| payable |
Benxi Steel Group Dalian Refractories Co.,
1,487,446.42Accounts
| Ltd. | |
| payable |
Bengang Group International Economic and
50,692,605.67 47,218,526.77Accounts
| Trade Co., Ltd. | |
| payable |
Bengang Group Co., Ltd.4,688,239.05 4,688,315.28Accounts
Benxi Aiko Hydraulic Sealing Co., Ltd.2,778,115.83 1,646,773.75Accounts
| payable |
| payable |
Benxi Northern Iron Industry Co., Ltd.73,671.74 4,486,925.32
| Items | Related party | 2024/12/31 | 2023/12/31 |
Accounts
Benxi Beiying Iron and Steel (Group) Co.,
| payable | Ltd. |
79,183,767.61 152,926,015.01Accounts
Benxi Dongfeng Lake Steel Resource
| payable | Utilization Co., Ltd. |
2,794,117.30 11,255,094.10Accounts
Benxi Iron and Steel (Group) Real Estate
| payable | Development Co., Ltd. |
89,735.06 130,815.00Accounts
Benxi Iron and Steel (Group) International
| payable | Trade Tengda Co., Ltd. |
46,335,396.72 42,667,716.38Accounts
Benxi Iron and Steel (Group) Machinery
| payable | Manufacturing Co., Ltd. |
10,659,752.69 2,438,119.19Accounts
Benxi Iron and Steel (Group) Construction
| payable | Advanced Decoration Co., Ltd. |
264,705.62 264,705.62Accounts
Benxi Iron and Steel (Group) Construction
| payable | Co., Ltd. |
29,543,424.37 35,954,925.98Accounts
Benxi Iron and Steel (Group) Mining
| payable | Construction Engineering Co., Ltd. |
12,083,876.39 7,069,202.17Accounts
Benxi Iron and Steel (Group) Mining
| payable | Liaoyang Ma'erling Pellet Co., Ltd. |
10,282,360.99 55,297,876.79Accounts
Benxi Iron and Steel (Group) Mining Co.,
| payable | Ltd. |
59,008,517.39 71,864,074.04Accounts
Benxi Iron and Steel (Group) Thermal Power
| payable | Development Co., Ltd. |
12,362.40 281,092.78Accounts
Benxi Steel & Iron (Group) Steel & Iron
| payable | Process and Logistics Co., Ltd. |
92,630,122.46 47,480,851.11Accounts
Benxi Iron and Steel (Group) Industrial
| payable | Development Co., Ltd. |
53,022,441.36 99,026,848.37Accounts
Benxi Iron and Steel (Group) Information
| payable | Automation Co., Ltd. |
23,459,353.69 18,762,233.66Accounts
Benxi Steel (Group)28,808,379.76 32,174,626.26Accounts
| payable |
| payable |
Benxi Xihu Metallurgical Furnace Material
17,171,380.52 25,620,902.35
| Items | Related party | 2024/12/31 | 2023/12/31 |
Accounts
Benxi Weir Surfacing Manufacturing Co.,
| payable | Ltd. |
234,112.13 234,112.13Accounts
Benxi New Industrial Development Co., Ltd.38,700.00 3,357,637.09Accounts
| payable |
| payable |
DeLin Land Port Supply Chain Services Co.,
7,713.30 58,351.28Accounts
| Ltd. | |
| payable |
Liaoning Hengtai Heavy Machinery Co., Ltd.13,479,975.49 18,098,769.50Accounts
Liaoning Hengtong Metallurgical Equipment
| payable | Manufacturing Co., Ltd. |
7,166,704.73 1,409,071.37Accounts
Liaoning Lide Internet of Things Co., Ltd.7,230,457.06 4,170,770.16Accounts
| payable |
| payable |
Liaoning Metallurgical Vocational Technical
517,768.00 48,048.00Accounts
| College | |
| payable |
Liaoning Yitong Machinery Manufacturing
4,599,719.45 2,127,118.28Accounts
| Co., Ltd. | |
| payable |
Tianjin Bengang Sheet Metal Processing &
487.99 7.25
Accounts
| Distribution Co., Ltd. | |
| payable |
Angang Electrical Co., Ltd.63,861.90 170,418.08Accounts
Angang Scrap Resources (Anshan) Co., Ltd.90,856,997.04 66,774,511.99Accounts
| payable |
| payable |
Angang Steel Rope Co., Ltd.263,044.11Accounts
Angang Steel Company Limited417,943.09 145,476.64Accounts
| payable |
| payable |
Angang Group Engineering Technology Co.,
85,440.00 170,708.00Accounts
| Ltd. | |
| payable |
Angang Group International Economic &
193,806.42 38,512,770.27Accounts
| Trade Co., Ltd. | |
| payable |
Angang Group Mining Gongchangling Co.,
774,734.40 6,637,769.40
| Items | Related party | 2024/12/31 | 2023/12/31 |
Accounts
Angang Energy Technology Co., Ltd.132,150.38Accountspayable
Angang Industrial Group (Anshan)Equipment Operation & Maintenance Co.,
| payable | |
| Ltd. |
3,063,464.44Accounts
Angang Industrial Group Metallurgical
| payable | Machinery Co., Ltd. |
3,048,409.40 2,198,235.32Accounts
Angang Heavy Machinery Co., Ltd.2,480,080.39 864,614.53Accounts
| payable |
| payable |
Anshan Iron & Steel Metallurgical Furnace
2,641,730.70 5,954,131.61Accounts
| Material Technology Co., Ltd. | |
| payable |
Bengang Stainless Steel Cold Rolling
42,982.27Accounts
| Dandong Co., Ltd. | |
| payable |
Bengang Electrical Co., Ltd.2,692,262.89 2,903,896.45Accounts
Benxi Beiying Iron and Steel Group Import
| payable | and Export Co., Ltd. |
225,141.59Accounts
Benxi Iron & Steel (Group) Metallurgical
| payable | Slag Co., Ltd. |
250,593.53Accounts
DeLin Industrial Products Co., Ltd.11,409,283.88 9,685,683.68Accounts
| payable |
| payable |
Shanxi Materials International Energy Co.,
91,859.97Accounts
| Ltd. | |
| payable |
Dalian Brollo Steel Pipe Co., Ltd.1,007,742.98Accounts
Bengang Group Co., Ltd.45,054,305.70Otheraccounts
| payable |
| payable |
Bengang Gaoyuan Industrial DevelopmentCo., Ltd.
5,005,617.56 3,058,404.54Otheraccounts
Benxi Steel Group Dalian Refractories Co.,Ltd.
20,000.00
| Items | Related party | 2024/12/31 | 2023/12/31 |
Otheraccounts
Bengang Group International Economic andTrade Co., Ltd.
66,120,363.96 65,932,990.42Otheraccounts
| payable |
| payable |
Bengang Group Co., Ltd.219,843,255.77 23,223,375.93Otheraccounts
Benxi Aiko Hydraulic Sealing Co., Ltd.58,590.00 142,790.82Otheraccounts
| payable |
| payable |
Benxi Beiying Iron and Steel (Group) Co.,Ltd.
7,766,352.17 40,103,767.22Otheraccounts
Benxi Dongfeng Lake Steel ResourceUtilization Co., Ltd.
210,000.00 210,000.00Otheraccounts
| payable |
| payable |
Benxi Iron and Steel (Group) EngineeringConstruction Supervision Co., Ltd.
1,488,917.43 1,999,087.29Otheraccounts
Benxi Iron and Steel (Group) MachineryManufacturing Co., Ltd.
3,792,085.01Otheraccounts
| payable |
| payable |
Benxi Iron and Steel (Group) Inspection andTesting Co., Ltd.
735,280.00 75,000.00Otheraccounts
Benxi Iron and Steel (Group) ConstructionAdvanced Decoration Co., Ltd.
123,738.55 265,274.55Otheraccounts
| payable |
| payable |
Benxi Iron and Steel (Group) ConstructionCo., Ltd.
217,077,997.48 188,471,867.14Otheraccounts
Benxi Iron and Steel (Group) MiningConstruction Engineering Co., Ltd.
7,550,015.30 37,398,204.19
| Items | Related party | 2024/12/31 | 2023/12/31 |
Otheraccounts
Benxi Iron and Steel (Group) Thermal PowerDevelopment Co., Ltd.
697,337.92 2,070,400.72Otheraccounts
| payable |
| payable |
Benxi Steel & Iron (Group) Steel & IronProcess and Logistics Co., Ltd.
724,514,695.24 293,195,637.86Otheraccounts
Benxi Iron and Steel (Group) IndustrialDevelopment Co., Ltd.
1,412,218.05 4,078,753.90Otheraccounts
| payable |
| payable |
Benxi Iron and Steel (Group) InformationAutomation Co., Ltd.
108,472,109.63 56,689,600.00Otheraccounts
Benxi Steel (Group)52,720,523.82 13,372,608.70Otheraccounts
| payable |
| payable |
Benxi Xihu Metallurgical Furnace MaterialCo., Ltd.
100,000.00 200,000.00Otheraccounts
Benxi New Industrial Development Co., Ltd.13,997,378.10 15,131,176.03Otheraccounts
| payable |
| payable |
Liaoning Hengtai Heavy Machinery Co., Ltd.5,024,204.94 6,941,075.21Otheraccounts
Liaoning Hengyi Steel Trade Co., Ltd.11,758,998.02 11,758,998.02Otheraccounts
| payable |
| payable |
Liaoning Metallurgical Vocational TechnicalCollege
353,630.00 707,260.00Otheraccounts
Liaoning Yitong Machinery ManufacturingCo., Ltd.
330,463.37 30,396.50
| Items | Related party | 2024/12/31 | 2023/12/31 |
Otheraccounts
Angang (Liaoning) Materials TechnologyCo., Ltd.
300,000.00 390,000.00Otheraccounts
| payable |
| payable |
Angang Scrap Resources (Anshan) Co., Ltd.500,000.00 500,000.00Otheraccounts
Angang Group Engineering Technology Co.,Ltd.
114,249,580.71 183,423,813.04Otheraccounts
| payable |
| payable |
Angang Group Co., Ltd.1,635.00Otheraccounts
Angang Group Automation Co., Ltd.7,332,129.00 1,283,900.00Otheraccounts
| payable |
| payable |
Angang Construction Group Co., Ltd.3,319,522.94 6,676,229.55Otheraccounts
Angang Metal Structure Co., Ltd.10,000.00 10,000.00Otheraccounts
| payable |
| payable |
Angang Heavy Machinery Design &Research Institute Co., Ltd.
826,121.54 50,000.00Otheraccounts
Angang Heavy Machinery Co., Ltd.1,040,012.56 409,930.10Otheraccounts
| payable |
| payable |
Anshan Angang International Travel AgencyCo., Ltd.
245,460.00Otheraccounts
Anshan Iron & Steel Metallurgical FurnaceMaterial Technology Co., Ltd.
50,000.00 50,000.00
(7) Centralized Fund Management
1. The key elements of the centralized capital management arrangements in which the
Company participates and operates are as follows:
In December 2021, after negotiation with Anshan Iron & Steel Group Finance CompanyLimited (hereinafter referred to as Anshan Iron & Steel Finance Company), the “FinancialServices Agreement (Years 2022-2024)” was entered into in order to agree on the terms of therelevant financial business and the upper limit of the amount of the relevant transactionsbetween the Company and its subsidiaries and Anshan Iron & Steel Finance Company for theyears 2022, 2023 and 2024. The agreement stipulates that in the next twelve months, themaximum daily deposit balance of the Company and its holding subsidiaries with Anshan Iron& Steel Finance Company will be RMB4.5 billion, the maximum credit limit of loans, bills
| Items | Related party | 2024/12/31 | 2023/12/31 |
Otheraccounts
Bengang Electrical Co., Ltd.776,394.34 5,768,826.24Otheraccounts
| payable |
| payable |
Benxi Iron and Steel (Group) Road andBridge Construction Engineering Co., Ltd.
318.66
Otheraccounts
Dalian Brollo Steel Pipe Co., Ltd.20,000.00 20,000.00Otheraccounts
| payable |
| payable |
DeLin Industrial Products Co., Ltd.943,215.92Otheraccounts
Liaoning Hengtong Metallurgical EquipmentManufacturing Co., Ltd.
20,000.00Otheraccounts
| payable |
| payable |
Liaoning Metallurgical Technician College2,229,204.00Otheraccounts
Pangang Group Engineering TechnologyConsulting Co., Ltd.
1,001,991.58
and other forms of credit will be RMB5.0 billion, and the maximum entrusted loan to beprovided by Anshan Iron & Steel Finance Company to the Company will be RMB2.0 billion.
In December 2024, after negotiation with Anshan Iron & Steel Group Finance CompanyLimited (hereinafter referred to as Anshan Iron & Steel Finance Company), the “FinancialServices Agreement (Years 2025-2027)” was entered into in order to agree on the terms of therelevant financial business and the upper limit of the amount of the relevant transactionsbetween the Company and its subsidiaries and Anshan Iron & Steel Finance Company for theyears 2025, 2026 and 2027. The agreement stipulates that the maximum daily balance of fundsdeposited by Bengang Plates in Angang Financial Company for settlement shall not exceedRMB 4.5 billion each year, and the interest generated by the deposits shall not exceed RMB100 million per year; the amount of loans, bills and other forms of credit provided by AngangFinancial Company to Bengang Plates shall not exceed RMB 5 billion each year, and the loaninterest shall not exceed RMB 250 million per year; the amount of entrusted loans provided byAngang Financial Company to Bengang Plate Group shall not exceed RMB 2 billion each year,and the entrusted loan interest shall not exceed RMB 100 million per year.
2. Funds pooled by the Company to the Group
Funds deposited directly into finance companies by the Company without being pooled intothe accounts of the Group's parent company
Items
| 2024/12/31 | 2023/12/31 |
Gross carrying
Provision for
| amount | bad debts |
Gross carrying
Provision for
| amount | bad debts |
Cash at bank and on
1,227,198,770.48 406,288,003.73
| hand | ||||
| Total | 1,227,198,770.48 | 406,288,003.73 | ||
| include: funds restricted |
due to centralized
14. Commitments and Contingencies
（1） Significant Commitments
1. Lease contracts in progress or to be performed and their financial impacts
(1) According to the Land Use Rights Lease Agreement signed between the Company and
Benxi Steel (Group) Co., Ltd. on April 7, 1997, December 30, 2005, and subsequentsupplementary agreements, the Company leases land from Bengang Group at a rate of
0.594 yuan per square meter per month. The total leased land area is 7,669,068.17 square
meters, with an annual rent of 54.66 million yuan.
(2) On August 14, 2019, the Company signed the Building Lease Agreements with Benxi
Steel (Group) Co., Ltd. and Benxi Beiying Steel (Group) Co., Ltd., leasing the buildings andauxiliary facilities occupied by the 2300 hot rolling mill production line and the 1780 hotrolling mill production line, respectively. The lease term extends until December 31, 2038.The lease fee is determined based on the depreciation of the original building value andnational surtaxes, plus a reasonable profit margin through negotiation. The estimatedmaximum annual rent shall not exceed 20 million yuan for the 2300 hot rolling mill and 18million yuan for the 1780 hot rolling mill. The rent is settled and paid on a monthly basis.This related-party transaction has been reviewed and approved by the Company’s 8th Boardof Directors at its 4th meeting.
(3) On July 15, 2019, the Company signed Land Lease Agreements with Benxi Steel (Group)
Co., Ltd. and Bengang Group, leasing a total of eight plots of land from both companies.The leased land areas are 42,920.00 square meters and 728,282.30 square meters,respectively. The lease term is 20 years, with a rental price of 1.138 yuan per square meterper month. After the agreement takes effect, every five years, an evaluation will be conductedbased on national laws and policies and the pricing principles stipulated in Article 2 of theagreement to determine whether the rent needs to be adjusted. This related-party transactionhas been reviewed and approved by the Company’s 8th Board of Directors at its 3rd meeting.
(4) As of December 31, 2024, the amount of irrevocable letters of credit yet to be fulfilled is
1.01 billion yuan.
（2） Contingencies
As of December 31, 2024, the Company has no significant contingent matters that requiredisclosure.
15. Subsequent events
On March 20, 2025, Bengang Steel Plates Co., Ltd. issued the "Progress Announcement onMajor Asset Exchange and Related-Party Transaction." The Company plans to conduct an assetexchange with its controlling shareholder, Benxi Steel (Group) Co., Ltd. The proposed acquiredasset is 100% equity interest in Benxi Steel & Iron (Group) Mining Co., Ltd. The proposeddisposed assets include all assets and liabilities of the listed company, except for the retainedassets and liabilities. Any difference in value between the acquired and disposed assets will be
settled in cash by one party to the other. At present, the specific scope of the transaction assets,transaction price, and other key elements have not been finalized. No agreement has beensigned between the parties, and the transaction plan requires further evaluation, discussion, andnegotiation. Additionally, the transaction must undergo necessary decision-making andapproval procedures in accordance with relevant laws, regulations, and the Company's Articlesof Association. Therefore, there remains significant uncertainty regarding this transaction.
16. Other significant events
（1） Correction of previous accounting errors
1. Retrospective Restatement Method
No prior period accounting errors were corrected using the retrospective restatement methodduring this reporting period.
2. Prospective Application Method
No prior period accounting errors were corrected using the prospective application methodduring this reporting period.
（2） Significant Debt Restructuring
Items
DebtRestructuringMethod
CarryingAmount ofRestructuredDebt
RecognizedGain/Loss onDebtRestructuring
Increase in ShareCapital Due toDebt-to-Equity
Conversion
Increase inInvestment Dueto Debt-to-EquityConversion
Percentageof Debtor'sTotal Equity(%)
ContingentPayable/Receivable
| Original | Fair Value |
DeterminationMethod andBasis in DebtRestructuringAccountsPayable
of the debt
18,965,884.21 6,496,818.35
| Settlement of debt with cash lower than the carrying amount | ||||||||
| Total | 18,965,884.21 | 6,496,818.35 |
（3） Segment information
Due to the fact that the Company's main product is steel, with other products accounting fora smaller proportion of sales, and the primary production base being located in the Liaoningregion, it is not applicable to disclose segment reporting.
17. Notes to the financial statements of parent company
1. Accounts receivable
(1) Accounts receivable disclosed by aging
| Items | 2014/12/31 | 2013/12/31 |
| Within 1 year (inclusive) | 775,949,268.73 | 719,865,861.39 |
| 1-2 years (inclusive) | 5,786,445.58 | 561,695,759.42 |
| 2-3 years (inclusive) | 126,254,788.19 | 647,190.77 |
| 3-4 years (inclusive) | 557,413.41 | 845,982.97 |
| 4-5 years (inclusive) | 748,799.87 | 503,056.19 |
| Over 5 years | 97,491,074.53 | 98,702,147.96 |
| subtotal | 1,006,787,790.31 | 1,382,259,998.70 |
| less |
：
| bad debt | 107,374,488.69 | 138,933,196.14 |
| Total: | 899,413,301.62 | 1,243,326,802.56 |
(2) Accounts receivable disclosed by method of bad debt provision
Items
| 2024/12/31 | 2023/12/31 | ||
| Carrying amount | Provision for bad debts | ||
Book value
| Carrying amount | Provision for bad debts |
Book valueAmount
Percentage
(%)
Amount
Percentage(%)
Amount
Percentage(%)
Amount
| Provision | Provision |
Percentage(%)
assessedindividually
48,196,244.68 4.79 48,196,244.68 100.00 48,196,244.68 3.49 48,196,244.68 100.00
| Provision |
| Provision assessed by |
grouping
characteristics
958,591,545.63 95.21 59,178,244.01 6.17 899,413,301.62 1,334,063,754.02 96.51 90,736,951.46 6.80 1,243,326,802.56
| credit risk | ||||||||||
| Including: | ||||||||||
| By Aging |
portfolio
313,614,474.73 31.15 59,178,244.01 18.87 254,436,230.72 1,021,248,997.51 73.88 90,736,951.46 8.88 930,512,046.05
portfolio
644,977,070.90 64.06 644,977,070.90 312,814,756.51 22.63 312,814,756.51
| By Risk | ||||||||||
| Total | 1,006,787,790.31 | 100.00 | 107,374,488.69 | 899,413,301.62 | 1,382,259,998.70 | 100.00 | 138,933,196.14 | 1,243,326,802.56 |
Significant Provision for bad debts assessed individually：
Item
| 20241231 | 20231231 |
Accountsreceivable
Provision forbad debts
debtsratio（%）
Basis forprovision
Accountsreceivable
Provision for
bad debts
| Bad | ||
| Benxi Nanfen |
XinheMetallurgical
48,196,244.68 48,196,244.68 100.00
Ceased
| Co., Ltd. | production |
48,196,244.68 48,196,244.68
| Total | 48,196,244.68 | 48,196,244.68 | 48,196,244.68 | 48,196,244.68 |
Accounts receivable tested for impairment by portfolio:
Portfolio tested by aging
Items
20241231Carrying amount Provision for bad debts Bad debts ratio (%)Within 1 year228,667,583.68 2,286,675.85 1.00
1-2 years5,786,445.58 578,644.56 10.00
2-3 years28,559,402.34 5,711,880.47 20.00
3-4 years557,413.41 557,413.41 100.004-5 years748,799.87 748,799.87 100.00
Over 5 years49,294,829.85 49,294,829.85 100.00
Total313,614,474.73 59,178,244.01
(3) Provision, reversal or recovery of bad debts of current period.
Items 2023/12/31
2024/12/31Provision
Reversal
or
| Change in the Current Period | ||
| Recovery | ||
Write-off orCancellation
OtherChanges
foraccountsreceivable
| bad debts |
138,933,196.14 -31,175,442.37 383,265.08 107,374,488.69
| Total | 138,933,196.14 | -31,175,442.37 | 383,265.08 | 107,374,488.69 |
(4) Accounts Receivable Written Off in the Current Period
| Item | Write-off Amount |
| Accounts Receivable Written Off | 383,265.08 |
(5) Top five debtors based on accounts receivable and contract assets at the year-
end
Company
AccountsReceivable
EndingBalance
ContractAssetEndingBalance
AccountsReceivable andContract AssetEndingBalance
Percentage oftotalAccountsReceivableand ContractAsset (%)
for Accounts
Receivableand ContractAsset Ending
| Balance |
Bengang
Ltd.
396,765,334.76 396,765,334.76 39.41
| Puxiang Cool Rolling Steel Sheet Co., |
| Benxi |
BengangSteel Sales
138,259,745.78 138,259,745.78 13.73
| Co., Ltd. |
| Liaoning |
North CoalChemicalIndustry(Group) Co.,
56,946,219.86 56,946,219.86 5.66 569,462.20
| Ltd. |
| North Hengda |
Logistics Co.,
54,202,395.22 54,202,395.22 5.38
| Ltd. |
| Benxi Nanfen |
XinheMetallurgical
48,196,244.68 48,196,244.68 4.79 48,196,244.68
| Co., Ltd. | |||||
| Total | 694,369,940.30 | 694,369,940.30 | 68.97 | 48,765,706.88 |
2. Other receivables
| Items | 2024/12/31 | 2023/12/31 |
Interest receivable
Dividends receivable
| 224,898,383.95 | 260,000,000.00 |
Other receivables
| 174,911,279.65 | 344,535,173.18 | |
| Total | 399,809,663.60 | 604,535,173.18 |
1. Dividends receivable
（1）Breakdown of Dividends receivable
（
| or company |
）
| 2024/12/31 | 2023/12/31 |
Bengang Puxiang Cool Rolling Steel
163,898,383.95Changchun Bengang Steel Sales Co.,
| Sheet Co., Ltd. |
| Ltd. |
3,000,000.00 43,000,000.00Shenyang Bengang Metallurgical
30,000,000.00Tianjin Bengang Steel & Iron Trading
| Science and Technology Co., Ltd. |
| Co., Ltd. |
47,000,000.00Shanghai Bengang Metallurgy Science
15,000,000.00Yantai Bengang Steel & Iron Sales
| and Technology Co., Ltd. |
| Co., Ltd. |
25,000,000.00Guangzhou Bengang Steel & Iron
58,000,000.00 100,000,000.00
| Trading Co., Ltd. | ||
| Total | 224,898,383.95 | 260,000,000.00 |
| Less: Provision for bad debts | ||
| Total | 224,898,383.95 | 260,000,000.00 |
（2）Significant dividend receivable overdue for more than one year
Company Ending Balance Age
Reasons foruncollecteddividends
impairment hasoccurred and the
| basis for judgment |
Guangzhou BengangSteel & Iron TradingCo., Ltd.
58,000,000.00 1-2 years
operations, tobe recovered inthe following
| year |
Not Applicable
| Total | 58,000,000.00 |
2. Other Receivables
(1) Other receivables disclosed by aging
| Items | 20141231 | 20131231 |
| Within 1 year (inclusive) | 57,266,931.07 | 284,052,848.38 |
| 1-2 years (inclusive) | 89,144,027.11 | 35,230,832.41 |
| 2-3 years (inclusive) | 13,450,953.62 | 33,345,904.56 |
| 3-4 years (inclusive) | 31,188,795.54 | 3,125,628.24 |
| 4-5 years (inclusive) | 842,882.51 | 229,028.24 |
| Over 5 years | 52,141,851.60 | 60,748,068.66 |
| Subtotal | 244,035,441.45 | 416,732,310.49 |
| Less: bad debts | 69,124,161.80 | 72,197,137.31 |
| Total: | 174,911,279.65 | 344,535,173.18 |
(2) Other receivables disclosed by method of bad debt provision
Items
| 2024/12/31 | 2023/12/31 | ||
| Carrying amount | Provision for bad debts | ||
Book Value
| Carrying amount | Provision for bad debts |
Book ValueAmount
Percentage（%）
Amount
Percentage
（
| % |
）
Amount
Percentage
（%）
| Provision |
Percentage
（
）
| Provision |
Percentage
（
）
Provisionassessed
15,752,285.66 6.45 15,752,285.66 100.00 15,752,285.66 3.78 15,752,285.66 100.00Provisionassessed bygrouping
| individually |
| credit risk characteristics |
228,283,155.79 93.55 53,371,876.14 23.38 174,911,279.65 400,980,024.83 96.22 56,444,851.65 14.08 344,535,173.18
| Including: | ||||||||||
| By Aging | 201,016,027.11 | 82.37 | 53,371,876.14 | 26.55 | 147,644,150.97 | 373,617,582.97 | 89.65 | 56,444,851.65 | 15.11 | 317,172,731.32 |
| By Risk | 27,267,128.68 | 11.17 | 27,267,128.68 | 27,362,441.86 | 6.57 | 27,362,441.86 | ||||
| Total | 244,035,441.45 | 100.00 | 69,124,161.80 | 174,911,279.65 | 416,732,310.49 | 100.00 | 72,197,137.31 | 344,535,173.18 |
Significant Provision for bad debts assessed individually：
Item
| 2024/12/31 | 2023/12/31 |
Otherreceivables
Provision forbad debts
debtsratio（%）
Basis forprovision
Otherreceivables
Provision for
bad debts
| Bad | ||
| Benxi Steel |
(Group)ThirdConstructionEngineering
12,504,978.59 12,504,978.59 100.00
Ceasedproduction
12,504,978.59 12,504,978.59
| Co., Ltd. | ||||||
| Total | 12,504,978.59 | 12,504,978.59 | 12,504,978.59 | 12,504,978.59 |
Other receivables tested for impairment by portfolio:
Portfolio tested by aging
Items
Carrying amount
Provision for bad
| 2024/12/31 | ||
| debts | ||
Bad debts ratio (%)
| Within 1 year | 57,226,023.92 | 572,260.25 | 1.00 |
| 1-2 years | 89,144,027.11 | 8,914,402.71 | 10.00 |
| 2-3 years | 13,450,953.62 | 2,690,190.72 | 20.00 |
| 3-4 years | 3,317,576.01 | 3,317,576.01 | 100.00 |
| 4-5 years | 842,882.51 | 842,882.51 | 100.00 |
| Over 5 years | 37,034,563.94 | 37,034,563.94 | 100.00 |
| Total | 201,016,027.11 | 53,371,876.14 |
(3) Provision for Bad Debts
Provision for bad debts
| Stage one | Stage two | Stage three |
Total12-monthexpected credit
loss
Lifetimeexpected creditloss (not credit
Lifetimeexpected creditloss (credit
| impaired) | impaired) | |||
| Beginning balance | 2,839,575.35 | 4,609,838.82 | 64,747,723.14 | 72,197,137.31 |
Provision for bad debts
| Stage one | Stage two | Stage three |
Total12-monthexpected creditloss
Lifetimeexpected creditloss (not credit
Lifetimeexpected creditloss (credit
| impaired) | impaired) |
Beginning balance in
| current period | ||||
| --Transfer to Stage two | -891,440.27 | 891,440.27 |
--Transfer to Stage
-663,515.20 663,515.20--Reversal to Stage
| three |
| two |
--Reversal to Stage
Current period
| one |
| provision |
-1,375,874.83 6,766,829.54 -4,480,774.08 910,180.63
| Current period reversal |
Current period write-
Current period write-
| back |
| off |
-3,983,156.14 -3,983,156.14
| Other change | ||||
| Ending balance | 572,260.25 | 11,604,593.43 | 56,947,308.12 | 69,124,161.80 |
(4) Provision, reversal or recovery of bad debts of current period
Items 2023/12/31
2024/12/31Provision
Reversalor
| Change in the Current Period | ||
| Recovery | ||
Write-off orCancellation
OtherChanges
for otherreceivables
| bad debts |
72,197,137.31 910,180.63 3,983,156.14 69,124,161.80
| Total | 72,197,137.31 | 910,180.63 | 3,983,156.14 | 69,124,161.80 |
(5) Written Off in the Current Period
| Item | Write-off Amount |
| Other receivables written off | 3,983,156.14 |
(6) Classification by Nature
| Nature | 2024/12/31 | 2023/12/31 |
Subsidy for the "Living
87,177,700.00 212,242,400.00
| show belt" Project | ||
| Intercompany Balances | 153,899,831.94 | 198,934,209.00 |
| Others | 2,957,909.51 | 5,555,701.49 |
| Total | 244,035,441.45 | 416,732,310.49 |
(7) Top five debtors based on other receivables at the year-end
Company
AccountsReceivableEndingBalance
Contract AssetEndingBalance
ReceivableandContract
AssetEnding
| Balance | Percentage |
of totalAccountsReceivable
and
Contract
| Asset (%) | Provision for doubtful debts |
for Accounts
Receivableand ContractAsset Ending
Xihu DistrictPeople's Court ofBenxi City
| Balance | ||
| Subsidy for |
the "Livingshow belt"
87,177,700.00 1-2years 35.72 8,717,770.00
| Project | |
| Yantai Bengang |
Steel & Iron Sales
IntercompanyBalances
27,267,128.68
over 5years
11.17
| Co., Ltd. |
| Benxi Steel |
(Group) ThirdConstructionEngineering Co.,
IntercompanyBalances
12,504,978.59
3-4years,over 5years
5.12 12,504,978.59
| Ltd. |
| Benxi Steel |
(Group) FirstConstructionEngineering Co.,
IntercompanyBalances
over 5 years
over 5years
1.33 3,247,307.07
Benxi Steel(Group) Co., Ltd.
IntercompanyBalances
2,674,500.00
| Ltd. | ||
| Within 1 |
year, 1-2
1.10 157,740.00
| years | |||||
| Total | 132,871,614.34 | 54.44 | 24,627,795.66 |
3. Long-term Equity Investments
Item
| 2024/12/31 | 2023/12/31 |
Book Value Provision for impairment Carrying amount Book Value Provision for impairment Carrying amount
| Investment in Subsidiaries | 2,391,943,459.43 | 2,391,943,459.43 | 2,222,281,590.24 | 2,222,281,590.24 | ||
| Investment in Associates and Joint Ventures | 45,413,221.72 | 45,413,221.72 | 46,910,346.41 | 46,910,346.41 | ||
| Total | 2,437,356,681.15 | 2,437,356,681.15 | 2,269,191,936.65 | 2,269,191,936.65 |
1. Investment in Subsidiaries
Name of entity
Beginning balance
of investment
Beginningbalance ofProvision forimpairment
Ending balance of
investment
Endingbalance ofProvisionforimpairmentAdditionalInvestment
Reduction in
Investment
Provision
forImpairment
in theCurrent
| Change in the Current Period | ||
| Period | ||
Other
Shanghai Bengang Metallurgical
229,936,718.57 229,936,718.57
| Technology Co., Ltd. | ||||||||
| Benxi Bengang Steel Sales Co., Ltd. | 30,000,000.00 | 30,000,000.00 |
Name of entity
Beginning balanceof investment
Beginningbalance ofProvision forimpairment
Ending balance of
investment
Endingbalance ofProvisionforimpairmentAdditionalInvestment
Reduction inInvestment
Provision
forImpairmentin theCurrent
| Change in the Current Period | ||
| Period | ||
Other
Bengang POSCO Cold Rolling Sheet
1,019,781,571.10 1,019,781,571.10Tianjin Bengang Steel Trading Co.,
| Co., Ltd. |
| Ltd. |
230,318,095.80 230,318,095.80Changchun Bengang Steel Sales Co.,
28,144,875.36 28,144,875.36
| Ltd. | ||||||||
| Yantai Bengang Steel Sales Co., Ltd. | 219,100,329.41 | 219,100,329.41 |
Guangzhou Bengang Steel Trading
200,000,000.00 200,000,000.00Dalian Benruitong Automotive
| Co., Ltd. |
| Materials Technology Co., Ltd. |
65,000,000.00 65,000,000.00Shenyang Bengang Metallurgical
200,000,000.00 200,000,000.00
Name of entity
Beginning balanceof investment
Beginningbalance ofProvision forimpairment
Ending balance of
investment
Endingbalance ofProvision
forimpairmentAdditionalInvestment
Reduction in
Investment
Provision
forImpairment
in theCurrent
| Change in the Current Period | ||
| Period | ||
Other
| North Hengda Logistics Co., Ltd. | 169,661,869.19 | 169,661,869.19 |
合计
| 2,222,281,590.24 | 169,661,869.19 | 2,391,943,459.43 |
2. Investment in Associates and Joint Ventures
For investment in associates and joint ventures, please refer to Note 5 (9) Long-term Equity Investments.
4. Operating Revenue and Operating Costs
1. Operating Revenue and Operating Costs
Item
| 2024 | 2023 | ||
| Revenue | Cost | Revenue | Cost |
Principal
50,700,530,631.97 54,540,344,179.60 56,614,035,827.20 57,748,112,204.90Other
| business |
| business |
1,295,762,825.87 1,309,833,559.74 1,572,946,304.56 1,545,382,455.23
| Total | 51,996,293,457.84 | 55,850,177,739.34 | 58,186,982,131.76 | 59,293,494,660.13 |
2. Breakdown of Operating Revenue and Operating Costs
Item
| 2024 | ||
| Operating Revenue | Operating Costs | |
| Classified by Time of Transfer of Goods: | ||
| Recognized at a Point in Time | 50,700,530,631.97 | 54,540,344,179.60 |
| Recognized over a Period of Time | ||
| Total | 50,700,530,631.97 | 54,540,344,179.60 |
| Classified by Operating Region: | ||
| Domestic | 42,310,190,368.12 | 45,840,388,808.50 |
| Overseas | 8,390,340,263.85 | 8,699,955,371.10 |
| Total | 50,700,530,631.97 | 54,540,344,179.60 |
5. Income on investment
| Item | 2024 | 2023 |
| Income from long-term equity investment (cost method) | 163,898,383.95 | 464,123,512.41 |
Income from long-term equity investment (equity
-1,497,124.69 -1,085,968.20
| method) | ||
| Gains from Debt Restructuring | 6,459,490.86 | 5,179,346.89 |
| Other | -47,966,970.21 | -6,626,340.44 |
| Total | 120,893,779.91 | 461,590,550.66 |
18. Supplementary information
(1) Details of non-recurring profit and loss
| Items | Amount | Notes |
| Gains or Losses from the Disposal of Non-Current Assets, |
including the reversal of previously recognized impairment
-35,999,024.90
| provisions. |
| Government Grants Recognized in Profit or Loss for the Period, |
except for those that are closely related to the company’s normalbusiness operations, comply with national policies, are grantedbased on predetermined standards, and have a continuous impact
180,819,165.49
| on the company's profit or loss. |
| Fair Value Gains or Losses from Financial Assets and Liabilities |
Held by Non-Financial Enterprises, as well as disposal gains orlosses from financial assets and liabilities, excluding effective
| hedging activities related to the company's normal operations. | ||
| Funds Occupation Fees Charged to Non-Financial Enterprises, recognized in profit or loss for the period. | ||
| Gains or Losses from Entrusted Investments or Asset Management by third parties. |
Gains or Losses from Loans Entrusted to External Parties.
| Losses from Asset Impairment Due to Force Majeure, such as natural disasters. | ||
| Reversal of Impairment Provisions for Individually Tested Receivables. | 18,456,201.45 | |
| Gains from Acquiring Subsidiaries, Associates, or Joint Ventures, |
where the acquisition cost is lower than the acquirer's share of the
| investee’s identifiable net assets at fair value. |
| Net Profit or Loss of a Subsidiary from the Beginning of the Period |
to the Merger Date, in a business combination under common
16,120,746.07Gains or Losses from Non-Monetary Asset Exchanges.
| control. | ||
Gains or Losses from Debt Restructuring.
| 6,459,490.86 |
One-Time Expenses Due to Discontinuation of Business Activities,
One-Time Impact on Profit or Loss Due to Changes in Tax,
| such as severance payments for employees. |
| Accounting, or Other Legal and Regulatory Adjustments. |
One-Time Share-Based Payment Expenses Recognized Due to the
Gains or Losses from Changes in Fair Value of Payable EmployeeCompensation for cash-settled share-based payments after the
| Cancellation or Modification of an Equity Incentive Plan. |
| vesting date. |
Gains or Losses from Fair Value Changes of Investment Properties,
| measured using the fair value model. | ||
| Gains from Transactions Conducted at Unfair Market Prices. |
| Items | Amount | Notes |
Gains or Losses from Contingent Events Unrelated to the
| Company’s Normal Business Operations. | ||
| Management Fee Income from Entrusted Operations. |
Other Non-Operating Income and Expenses Not Included in the
40,152,707.29Other Gains or Losses that Meet the Definition of Non-RecurringGains and Losses.
Above Categories.Subtotal
| Subtotal | 226,009,286.26 | |
| Income Tax Effect | 33,544,011.54 | |
| Effect of Non-controlling Interests (After Tax) | 8,134,849.37 | |
| Total | 184,330,425.35 |
(2) Net asset yield and earnings per share
Profit in the Reporting Period
Weightedaverage net
| assets yield | Earnings per share (Yuan) |
Basic EPS Diluted EPSNet profit attributable to ordinary
-34.29% -1.226 -1.226Net profit attributable to ordinaryshareholders after deducting non-
| shareholders |
| recurring profit and loss |
-35.77% -1.271 -1.271
(3) Differences between Domestic and Foreign Accounting Standards
1. The differences in net profit and net assets in financial reports disclosed under International Financial
Reporting Standards and Chinese accounting standards
□ applicable √ not applicable
2. The difference between net profit and net assets in financial reports disclosed under overseas accounting
standards and Chinese accounting standards
□ applicable √ not applicable
3. Explanation of the reasons for differences in accounting data under domestic and foreign accounting
standards. If the data that has been audited by an overseas audit institution is adjusted for differences, thename of the overseas institution should be indicated.
(4) Others